US Bank 2004 Annual Report Download - page 53
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Please find page 53 of the 2004 US Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.interest-only strip of $34.4 million. The securitization trust option exercises, offset primarily by the payment of
issued asset-backed variable funding notes in various dividends and the repurchase of common stock.
tranches. The Company provides credit enhancement in the On December 21, 2004, the Company increased its
form of subordinated securities and reserve accounts. The dividend rate per common share by 25.0 percent, from
Company’s risk, primarily from losses in the underlying $.24 per quarter to $.30 per quarter. On December 16,
assets, was considered in determining the fair value of the 2003, the Company increased its dividend rate per common
Company’s retained interests in this securitization. The share by 17.1 percent, from $.205 per quarter to $.24 per
Company recognized income from subordinated securities, quarter. On March 12, 2003, the Company increased its
an interest-only strip and servicing fees from this dividend rate per common share by 5.1 percent, from
securitization of $33.2 million during 2004 and $.195 per quarter to $.205 per quarter.
$29.8 million during 2003. The unsecured small business On December 18, 2001, the Board of Directors
credit securitization held average assets of $438.9 million approved an authorization to repurchase 100 million shares
and $571.4 million in 2004 and 2003, respectively. of common stock through 2003. In 2003, the Company
repurchased 7.0 million shares of common stock under the
Capital Management The Company is committed to plan, which expired in 2003. On December 16, 2003, the
managing capital for maximum shareholder benefit and Board of Directors approved an authorization to
maintaining strong protection for depositors and creditors. repurchase 150 million shares of common stock over the
The Company has targeted returning 80 percent of earnings following 24 months. During 2003, the Company
to our shareholders through a combination of dividends and purchased 8.0 million shares under the December 2003
share repurchases. In keeping with this target, the Company plan. The average price paid for the 15.0 million shares
returned 109 percent of earnings in 2004. The Company repurchased during 2003 was $27.84 per share. In 2004,
continually assesses its business risks and capital position. the Company repurchased 88.8 million shares of common
The Company also manages its capital to exceed regulatory stock under the December 2003 plan. On December 21,
capital requirements for well-capitalized bank holding 2004, the Board of Directors approved an authorization to
companies. To achieve these capital goals, the Company repurchase 150 million shares of common stock during the
employs a variety of capital management tools including next 24 months. This new authorization replaces the
dividends, common share repurchases, and the issuance of December 16, 2003 authorization. In 2004, the Company
subordinated debt and other capital instruments. Total purchased 5.0 million shares of common stock under the
shareholders’ equity was $19.5 billion at December 31, plan. The average price paid for the 93.8 million shares
2004, compared with $19.2 billion at December 31, 2003. repurchased during 2004 was $28.34 per share. For a
The increase was the result of corporate earnings and complete analysis of activities impacting shareholders’
Regulatory Capital Ratios
At December 31 (Dollars in Millions) 2004 2003
U.S. Bancorp
Tangible common equity *********************************************************************************** $11,950 $11,858
As a percent of tangible assets ************************************************************************** 6.4% 6.5%
Tier 1 capital ********************************************************************************************* $14,720 $14,623
As a percent of risk-weighted assets ********************************************************************* 8.6% 9.1%
As a percent of adjusted quarterly average assets (leverage ratio) ******************************************** 7.9% 8.0%
Total risk-based capital ************************************************************************************ $22,352 $21,710
As a percent of risk-weighted assets ********************************************************************* 13.1% 13.6%
Bank Subsidiaries
U.S. Bank National Association
Tier 1 capital*************************************************************************************** 6.5% 6.6%
Total risk-based capital ****************************************************************************** 10.9 10.8
Leverage ****************************************************************************************** 5.9 6.3
U.S. Bank National Association ND
Tier 1 capital*************************************************************************************** 12.7% 13.1%
Total risk-based capital ****************************************************************************** 17.2 18.0
Leverage ****************************************************************************************** 10.8 11.0
Well-
Bank Regulatory Capital Requirements Minimum Capitalized
Tier 1 capital*************************************************************************************** 4.0% 6.0%
Total risk-based capital ****************************************************************************** 8.0 10.0
Leverage ****************************************************************************************** 4.0 5.0
U.S. BANCORP 51
Table 20