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US Bancorp (U.S.B) Financial Markets and Institutions Fin4303 Kyler Fritz Joseph Garcia Nicola Liotto October 22, 2023 1 | Page

Table of Contents Introduction 3 Interpreting the Trends 4 Ratio Analysis 5 Part A: Financial Performance General Analysis 6 Asset Turnover Analysis (Utilization) 6 Equity Multiplier 7 Return on Equity 8 Return on Assets 9 Return on Sales (Profit Margin) 9 Part B: Financial Performance Ratio 2022 11 1.Net Interest Margin 11 Allowance for Loan Losses 11 Loans to Core Deposits Ratio 11 Loans to Assets Ratio 12 Noninterest Income 12 Cost Efficiency Ratio 12 Equity-to-Assets Ratio 12 2.Noninterest Income 2022 12 3. Loan Portfolio 13 4. Deposit Funding 14 Conclusion 16 2 | Page

Introduction U.S. Bancorp, stylized as US Bancorp, is a bank holding corporation headquartered in Minneapolis, Minnesota, and legally registered in the state of Delaware. This banking entity serves as the parent corporation for the U.S. Bank National Association and holds the position of the fifth largest financial institution in the United States. The company offers a range of financial products, including banking, mortgages, investments, trust, and payment services, to various stakeholders, such as people, enterprises, governmental bodies, and other financial institutions. The organization possesses an aggregate of about 3,000 branches and about 4,800 automated teller machines (ATMs), predominantly located in the Western and Midwestern regions of the United States. The company holds the 117th position on the Fortune 500 list, indicating its significant standing in the business world. Additionally, it has been recognized as a systemically significant bank by the Board of Financial Stability, further highlighting its importance in the global financial system. Elavon is the credit card transaction handler owned by the firm, and Elan Financial Services is a credit card issuer that works with small credit unions and banks all throughout the United States to provide credit card products to its members. U.S. Bancorp runs with the distinction of holding the 2nd-oldest continuous national charter, which was initially awarded as Charter #24 in 1863 subsequent to the enactment of the National Bank Act. The charter numbers of U.S. Bank have been subject to changes due to the closure or acquisition of banks, resulting in the expiration of earlier charters and the subsequent increase of U.S. Bank's charter number from #24 to #2. Wells Fargo currently possesses the oldest national charter, initially bestowed upon the First National Bank of Philadelphia, subsequent to its acquisition of Wachovia through a merger. Business Strategy US Bank, like many financial institutions, operates in a dynamic and competitive market. Its strategic approach revolves around a combination of customer-centric services, technological innovation, and risk management. Notably, in US Bank’s most recent Q3 earnings report, it was stated that their leaders in the mobile banking industry. Rated number one for the fifth consecutive time in a row by the Keynova Group, US Bank continues to strive for an enhanced digital customer banking system. In efforts to increase customer satisfaction, US Bank released a new feature its online banking platform. Considered to be an enhanced connected partnership network, the software boasts an available third party payment option and treasury “solutions” which grants closer access for customers to US Bank. The corporate treasury teams division now has closer access to the client database which will allow them to find and improve payment capacity. In addition, US Bank also is striving towards including more automated systems to improve the efficiencies of client requirements. According to Andy Cecere, Chairman, President and CEO of US Bancorp, customer relations have improved substantially over the course of the past year. US Bank’s equity ratio increased 60 basis points to an impressive 9.7%. This was achieved through earnings generation and capital “incentives.” Strategic Approach: Customer-Centricity : US Bank places a strong emphasis on understanding and meeting customer needs. This involves tailoring products and services to different customer segments and enhancing the overall customer experience. 3 | Page

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Technological Innovation: To stay competitive in the rapidly evolving financial landscape, US Bank invests heavily in technology. This includes digital banking solutions, mobile apps, and advanced analytics to improve operational efficiency and enhance customer engagement. Risk Management : Given the nature of the financial industry, risk management is a critical component of US Bank's strategy. The bank employs sophisticated risk assessment tools and compliance measures to ensure the stability and security of its operations. Competitive Positioning: Diversification : US Bank has a diverse portfolio of financial products and services, ranging from traditional banking to investment and wealth management. This diversification helps mitigate risks and capture a broader market share. Regional Presence : With a significant physical and digital presence across the United States, US Bank strategically positions itself as a local bank with national reach. This allows them to cater to the unique needs of various communities while leveraging the scale of a larger institution. Market Dynamics: Regulatory Environment : The banking industry operates within a complex regulatory framework. US Bank navigates these regulations effectively, ensuring compliance while adapting to changes in the legal landscape. Economic Conditions : The bank's strategy is influenced by broader economic conditions. For instance, during periods of economic growth, US Bank might focus on expanding its loan portfolio, while during downturns, risk management and cost control become more prominent. Contributions to Objectives: Financial Performance : The strategic combination of customer-centricity, technological innovation, and risk management contributes to the bank's financial performance. This includes revenue growth, cost efficiency, and profitability. Brand Equity : US Bank aims to build and maintain a strong brand image. This not only attracts customers but also fosters trust, a crucial factor in the financial industry. US Bank's business strategy is a carefully crafted mix of customer focus, technological advancement, risk management, and market positioning. By adapting to changing market dynamics and regulatory environments, the bank aims to achieve its financial objectives while maintaining a competitive edge in the industry. As a forward looking metric that suggests continued growth, in the Q3 conference call, it was stated that US Bank will no longer be held to Category 2 requirements as of December 24, 2024. This was implemented in efforts to regain additional stability following post-acquisition relief. Granted by the Federal Reserve, this relief program will allow for US Bank to acquire additional funding much faster following the acquisition of Union Bank. In addition, US Bank has also seen a 3% increase in average total deposits which is ultimately the main goal of any US business banking strategy. Interpreting the Trends U.S. Bancorp: Profitability: 4 | Page

Profit Margin: U.S. Bancorp's profit margin has shown some fluctuations over the years. ROA (Return on Assets): The return on assets has been relatively stable. ROE (Return on Equity): U.S. Bancorp's return on equity has also varied. Efficiency: Equity Multiplier (EM): U.S. Bancorp's equity multiplier has fluctuated but generally remains high, indicating a significant use of leverage in financing its assets. Asset Utilization (AU): The asset utilization ratio provides an indication of the efficiency with which U.S. Bancorp is employing its assets in order to create income. The observed data exhibits periodic variations, although the overall trend consistently hovers around a value of approximately 2%. Income Composition: Non-Interest Income/Operating Income Ratio: This ratio shows the proportion of non-interest income to total operating income. U.S. Bancorp's non-interest income has been a significant portion of its total operating income. Net Interest Margin (NIM): NIM: U.S. Bancorp's net interest margin has fluctuated. It represents the difference between interest earned on assets and interest paid on liabilities. Industry: Profitability: U.S. Bancorp's profit margins and returns are generally lower than the industry averages. The industry shows higher profit margins and returns. Efficiency: U.S. Bancorp's equity multiplier is higher than the industry average, indicating more reliance on leverage. Asset Utilization: The industry has a slightly higher asset utilization ratio compared to U.S. Bancorp. Overall Summary: U.S. Bancorp has seen fluctuations in its financial success throughout the years. The financial institution has consistently exhibited a substantial dependence on revenue generated from sources other than interest. The utilization of leverage, as evidenced by the elevated equity multiplier, implies a deliberate approach to capital structure. Further exploration of the underlying factors contributing to particular fluctuations and patterns would be advantageous. Moreover, taking into account economic and industry conditions may contribute to a more comprehensive comprehension of the performance of U.S. Bancorp. RATIO ANALYSIS 5 | Page

(See Excel Spreadsheet 1) Part A: Financial Performance General Analysis In analyzing the financial data of US Bancorp in comparison to industry benchmarks, several key insights emerge that shed light on the company's performance and strategic positioning. The examination encompasses profitability, revenue growth, cost management, investment strategies, and various financial ratios. These metrics not only gauge the current standing of US Bancorp but also offer valuable implications for its future trajectory within the competitive landscape of the financial industry. Profitability metrics reveal areas for improvement, particularly in narrowing the gap between US Bancorp's profit margin and industry standards. Strategies to enhance Return on Assets (ROA) and maintain a competitive Return on Equity (ROE) are essential for sustained shareholder value. Meanwhile, the analysis of revenue growth emphasizes the need to capitalize on the company's positive trends in non- interest and net interest incomes. Cost management emerges as a critical factor, with a focus on balancing the growth in total operating income and controlling non-interest expenses. Furthermore, the examination of investment strategies underscores US Bancorp's consistent expansion, presenting both opportunities and challenges in maintaining this growth trajectory effectively. Delving into financial ratios, aligning with industry benchmarks becomes imperative for benchmarking success. Adjusting the Equity Multiplier and fine-tuning asset utilization are highlighted as areas of consideration for improved efficiency. 6 | Page

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The company's profit margin, although generally positive, lags behind the industry, signaling an opportunity for improvement through strategic cost management and revenue generation. Revenue Growth: While both non-interest and net interest incomes for US Bancorp and the industry have shown growth, the company should capitalize on its steady non-interest income growth and substantial net interest income increase. This growth trajectory suggests successful revenue generation strategies, and further optimization could propel US Bancorp ahead in the industry. Cost Management: US Bancorp has experienced a notable increase in total operating income and non-interest expenses over the years. Efficient cost management is crucial to sustaining profitability. The company should focus on balancing its revenue growth with controlled expenses to ensure sustained financial health. Investment Strategies: The growth in total equity capital and total assets reflects the company's robust investment strategies. US Bancorp has consistently expanded its financial footprint, positioning itself as a key player in the industry. The challenge lies in maintaining this growth trajectory while ensuring that investments contribute positively to profitability. Financial Ratios: Analyzing financial ratios, US Bancorp's profit margin, ROA, and ROE, while showing variations, generally exhibit positive trends. Aligning these ratios with industry benchmarks is essential for benchmarking success. The Equity Multiplier's increasing trend suggests a reliance on debt for asset expansion, while asset utilization's positive trajectory indicates improved efficiency. Fine-tuning these ratios could enhance overall financial stability and performance. Asset Turnover Analysis (Utilization) Formula: revenue (net income)/ total assets The Return on Equity (ROE) of U.S. Bancorp has a direct impact on the asset turnover. The profits before interest and taxes (EBIT) of U.S. Banc Corp exhibited a consistent trend within the period of 2000 to 2005, maintaining a stable range between 2.51% and 3.00%. In 2006, there was a reduction in the rate to 2.92%, and in the subsequent year, it maintained a pretty stable level slightly below 3.00%. During the years 2021 and 2022, the percentage reached its nadir, specifically 1.90% and 1.96% respectively, primarily attributable to the economic downturn and the worldwide health crisis. During this period, U.S. Bancorp's asset turnover experienced a significant decline, mirroring the industry-wide fall in asset turnover. In 2008, U.S. Bancorp obtained a government bailout in order to mitigate the bank's incurred losses. The United States government assumed around $306 billion worth of the bank's high-risk assets. Consequently, the government acquired the authority to purchase ownership shares. The Bush administration held the belief that implementing a bailout was imperative in order to protect the integrity and stability of the financial system. Following this, the implementation of the bailout plan effectively rescued U.S. Bancorp, so facilitating the bank's recovery from a sustained period of financial decline spanning three years. Equity Multiplier Formula: total assets/ total stockholders’ equity The Equity Multiplier is a financial metric that quantifies the leverage ratio of equity in relation to debt. It serves as a measure to assess the degree to which a financial organization utilizes debt to finance its assets. 7 | Page

From the years 2000 to 2002, U.S. Bancorp consistently maintained an average equity multiplier of 1000.0%. During these specified time intervals, U.S. Bancorp exhibited a relatively elevated reliance on debt as a means of financing its assets and sustaining its operational activities in comparison to the broader industry. It was deemed to be efficiently employed by financial experts and peer cohorts. Furthermore, it is worth noting that the bank exhibited an increased likelihood of dissolution within the specified timeframe of 2021-2022. Nevertheless, a shift in the pattern occurred at the onset of 2010. As an illustration, it is noteworthy that U.S. Bancorp consistently maintained an equity multiplier above the industry average, specifically at 895.06% and 917.0% throughout periods characterized by significant economic downturns. A low equity multiplier indicates that U.S. Bancorp has a lower dependence on debt funding, hence reducing the associated expenses of repaying debt. In the year 2022, US Bancorp experienced a marginal growth in its equity multiplier, reaching a value of 1094.94%, which is somewhat more than the industry's average of 1031.62%. The utilization of this strategy may be perceived as radical, hence placing US Bancorp in an adverse position with loan specialists. Return on Equity Formula: net income/ shareholders’ equity The metric known as Return on ownership (ROE) is commonly recognized as the "return on net worth" due to its function as an indicator of profitability, quantifying the amount of profit a firm creates in relation to each unit of shareholder ownership. U.S. Bancorp exhibits varying levels of fluctuation within the time frame spanning from 2000 to 2022, encompassing a range of values that extend from a minimum of 3.21% to a maximum of 11.46%. The return on equity for the period spanning from 2020 to 2021 witnessed a decline, primarily attributed to a reduction in net income in comparison to previous years. This occurrence took place amidst the peak of the worldwide pandemic. During the period of 2009 to 2010, U.S. Bancorp witnessed a significant decrease in its return on equity (ROE), with the figure declining from 10.01% in 2008 to a meager 4.87% in both 2009 and 2010. For every year from 2000-2022, U.S. Bancorp’s ROE performed better than the industry average. The financial crisis had a detrimental impact on U.S. Bancorp and the industry's return on equity (ROE). A positive relationship exists between net income and return on equity (ROE). When the net income is in a negative state, the return on equity (ROE) will also move in the same direction. Several factors played a role in the notable decline in Return on Equity (ROE), including the economic 8 | Page

recession and the implementation of a multi-billion-dollar repayments and loss-sharing arrangement with the Troubled Asset Relief Program (TARP). During the year from 2009 to 2010, the bank exhibited a significantly greater return on equity (ROE) in comparison to the industry benchmarks. In a comparable manner, the company observed an elevated return on equity (ROE) throughout the years 2020 and 2021 in contrast to the industry benchmarks. Furthermore, U.S. Bancorp witnessed a decline in its Return on Equity (ROE) by the conclusion of the year 2022. Both the recession and the global pandemic exerted significant impacts on the banking system. One of the primary ramifications resulting from the recession and the pandemic was a decrease in the return on equity experienced by shareholders. A positive correlation exists between the return on equity (ROE) and the bank's proficiency in generating profits for its shareholders. At now, U.S. Bancorp's return on equity (ROE) exceeds the average ROE of the industry. Return on Assets Formula: net income/ total assets The Dodd-Frank Act, enacted in July 2010, currently imposes robust regulatory measures on the financial industry. The newly enacted legislation serves as a reform measure aimed at mitigating risks that may affect the financial sector. It achieves this objective by establishing and regulating borrowing limits, capital requirements, minimum deposit reserves, and imposing financial disclosure obligations on banks. U.S. Bancorp is bound by the risk-based capital rules established by the Federal Reserve Board (FRB). The bank is obligated to adhere to a capital adequacy criterion known as the leverage ratio, which is not based on risk. This is widely recognized as the Tier 1 Capital, typically expressed as a proportion of the bank's adjusted average total assets. The maintenance of a sufficient capital ratio is of utmost significance for U.S. Bancorp. This metric serves as a means of communicating to regulatory bodies and stakeholders, who possess a vested interest in the financial well-being of the bank, that it possesses the necessary capital to ensure financial adequacy and operational continuity in the event of a financial crisis and subsequent losses. The bank's return on assets (ROA) has continuously exhibited superior performance compared to the industry. From 2008 to 2010, the banks' return on assets (ROA) stood at 0.89%, 0.43%, and 0.49% respectively. In comparison, the industry's average ROA for the corresponding period was 0.27%, - 9 | Page

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0.12%, and 0.27% respectively. The industry's focus on performance during that period can be attributed to the housing crisis. In the year 2022, the bank exhibited a performance on par with the industry, except for the year 2020, wherein the bank's Return on Assets (ROA) stood at 0.31%, while the industry's ROA was 0.15%. Both the underperformance of the banking sector and the industry can be attributed to the adverse effects of the global pandemic, which resulted in significant disruptions to the economy. Return on Sales (Profit Margin) Formula: EBIT/Sales The financial ratio in question assesses the efficacy of U.S. Bancorp in generating profits from its revenue. From 2000 to 2022, U.S. Bancorp has exhibited a marginally superior profit margin compared to the broader banking industry. Hence, the bank has exhibited superior performance in expense management relative to the industry throughout the period spanning 2021 to 2022. U.S. Bancorp exhibits a relatively higher degree of stability in its profit margin when compared to the industry over the period spanning from 2000 to 2022. Notably, the profit margin reached its highest point in 2004, reaching 37.82%. However, it subsequently experienced a significant decline, ultimately reaching 19.53% in the year 2020. The significant decline can be attributed to a rise in the allocation for loan loss provisions, so impacting the operating income. In the year 2020, there was a noteworthy rise in the provision for loan losses, amounting to $2.6 billion, as compared to the provision for loan losses in 2019, which was at $7.6 billion. The financial recession did not have a substantial influence on the profit margin of U.S. Bancorp. However, the bank faced challenges during the global pandemic due to its overexposure to an economic standstill. Consequently, this led to a significant increase in the bank's net income losses and its underperformance relative to the sector. The industry demonstrated a commendable performance in terms of profit margin during the 20-year period. However, during the peak of the financial recession in 2009, the industry experienced a profit margin of -7.28%. Subsequently, in 2010, the profit margin improved to 14.42%, although it remained considerably lower than the profit margin/return on sales of banks. Once again, the industry exhibited a subpar performance in relation to its profit margin, which stood at 10.64%. In contrast, over the period from 2021 to 2022, the industry had a higher level of profitability compared to the bank. US BANK CORP Data from 2000-2022 10 | Page

INDUSTRY Data from 2000-2022 11 | Page

Part B: Financial Performance Ratio 2022 U.S. Bancorp has consistently and steadily experienced growth over the years, a crucial factor in facilitating the bank's effective execution of strategic initiatives. One of the objectives of the institution is to strengthen its position as a prominent global financial entity catering to both individuals and enterprises. This will be achieved by the establishment of expertise in product offerings and client relationship management, as well as the development of extensive knowledge in local and global markets. Additionally, the institution aims to create a unique global network as part of its strategic goals. U.S. Bancorp places significant emphasis on upholding its financial obligations. U.S. Bancorp has the potential to enhance its market share among potential and current clients by consistently improving the operational efficiency and effectiveness of its banking institutions. As a result of this, U.S. Bancorp is expected to experience heightened levels of productivity and efficiency, alongside further development of its already well-established concepts and ambitions. Following the economic recession, U.S. Bancorp has exhibited a financial performance that above the norm in some respects. The bank consistently outperforms its competitors, and in certain instances, it surpasses the industry's overall performance. The core foundations of U.S. Bancorp, which consistently contribute to the firm's superior financial performance, are the primary factors enabling the corporation to maintain its competitive advantage. Net interest margin, allowance for loans as a percentage of assets, loans to core deposits ratio, loans to asset ratio, noninterest income as a percentage of operating income, cost efficiency ratio, and equity- to-assets ratio are among the key factors that contribute to the strong financial performance of U.S. Bancorp. Additional categories that can be considered include the cost efficiency ratio and the equity-to-assets ratio. 1.Net Interest Margin The NIM for U.S. Bancorp in 2022 was 1.15 percent. This shows the disparity between the interest earned by U.S. Bancorp and the interest it paid to its creditors. Consider the ratio of the bank's interest expenses to its interest income. The data reveals the percentage of the bank's interest-earning assets that are deposited funds. This means that interest income earned by U.S. Bancorp is almost times less as efficient as interest expense paid. The average industry NIM is 2.96%, which is much high than U.S. Bancorp's 1.15% NIM. The industry is performing better than the bank. Allowance for Loan Losses U.S. Bancorp has a loan loss allowance to cover potential losses from failed loans. U.S. Bancorp has set aside these monies, which represent an estimate of the percentage of the loans it holds that may go unpaid. The allowance for loan at U.S. Bancorp is 0.426, while the average across industries is 0.83. U.S. Bancorp reserves a smaller fraction of its loan portfolio than the industry average. This demonstrates that the bank has a smaller risk than the average bank when it comes to experiencing credit losses that result in accounts that cannot be collected. Loans to Core Deposits Ratio The amount of loans and savings at U.S. Bancorp is very important to the bank's success. Customer deposits are what the bank calls its "core deposits." It depends on how stable the bank's reserve base is 12 | Page

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that it can give loans. The financial institution can count on this as a steady source of cash. The percentage of loans to core savings at U.S. Bancorp was 0.52% in 2022, which was less than the average of 0.746% for the industry. According to the industry average, U.S. Bancorp is at a disadvantage compared to its competitors because it is getting fewer core deposits to pay its lending area at a higher rate. Loans to Assets Ratio The ratio of U.S. Bancorp's loans to its assets shows how much debt the company has. Its loan-to-asset ratio is 0.42, which is lower than the average for the industry, which is 0.52. This shows the percentage of U.S. Bancorp's assets that are funded by debt. A lot of the bank's assets are paid for by loans. In the industry, however, a larger share of overall assets is financed by debt. The ratio of U.S. Bancorp's loans to its assets is smaller than the average, which means the bank is doing well when it comes to getting equity financing. Noninterest Income How much working income there is compared to noninterest income. This money came to U.S. Bancorp from a number of different places in 2022. An example of a fee that a bank gets is an NSF fee. Other types of fees that banks get are transaction costs, inactivity fees, regular service charges, and so on. The bank has 43.03% noninterest income, which is higher than the average for the industry, which is 33.34%. This is an area where the industry is behind U.S. Bancorp. The industry makes less money from things other than interest than banks do. The bank will be happy about this. Cost Efficiency Ratio The cost efficiency ratio shows how much U.S. Bancorp spends on running its business compared to how much money it makes. With a cost efficiency ratio of 0.635 in 2022, it was better than the industry average of 0.617. This ratio looks at how U.S. Bancorp uses its assets and loans internally. It's a little better than average that the bank has a ratio of cost efficiency to overall expenses. Even with this small difference, U.S. Bancorp can turn its assets into income at about the same rate as the industry average. The sector as a whole and U.S. Bancorp are not hitting their best efficiency ratios, though, because their cost efficiency ratios are higher than 50%. To put it simply, the banks and the industry are making less money or are experiencing higher costs and spending more. Equity-to-Assets Ratio The shareholders still own a lot of U.S. Bancorp's assets, as shown by the ratio of the owners' equity to the company's total assets. If you divide the company's stockholder share by its total assets, you get this ratio. Only 0.075 of the bank's assets are owned by its shareholders. The average for all companies is 0.094. This number would be used to figure out how much to pay back owners if the bank went bankrupt. So, if U.S. Bancorp had to go bankrupt, it would sell all of its assets, pay off its bills, and give any money that was left over to its stockholders. The balance sheet has this number written down. The percentage of U.S. Bancorp's equity to its assets is lower than the average for banks. If a bank went out of business, owners would get less money than they would in a normal market. In this equity ratio, this means that the field as a whole is doing better than the bank. 2.Noninterest Income 2022 Noninterest income/operating income = 0.28 Bank Noninterest income/operating income = 33.34 Industry 13 | Page

▪ Noninterest income is composed of ▪ income from fiduciary activities ▪ service charges on deposit accounts in domestic offices ▪ trading gains (losses) ▪ fees from foreign exchange transactions ▪ other foreign transaction gains (losses) ▪ other gains (losses) ▪ fees from trading assets and liabilities," (FDIC.gov). US Bancorp's noninterest income made up 33.34% of its operating income, which is higher than the average of 28% for the industry. Noninterest income as a % of operating income: 3. Loan Portfolio For U.S. Bancorp, more than 90% of the industry’s loan portfolio is made up of: ▪ net loan and lease financing activities. Gross loans include: ▪ all real estate loans. ▪ farm loans ▪ commercial and industrial loans ▪ loan to individuals ▪ other loans and leases Compared to U.S. Bancorp, the proportion of the loan portfolio allocated to loans for unearned income is relatively low. In addition, less than 2.0% of the industry's total loan portfolio is reserved for unsecured loans, bad debt that are either unlikely to be collected or wholly uncollectible. This indicates that the sector has continued confidence in its ability to collect on 14 | Page

the loans it has issued. Particularly considering its proximity to the most recent economic recession. Loan Portfolio Table 4. Deposit Funding Total Deposit/assets = 89.63% U.S. Bancorp Deposit funding, as defined by the (FDIC.gov), refers to the aggregate value of all deposits held by financial institutions. This encompasses several types of deposits, such as demand deposits, saving deposits, time deposits, other savings accounts, (FDIC.gov). The money for deposits is derived from diverse sources, including deposits kept in domestic offices from people, organizations, and businesses. Furthermore, the funding of U.S. Bancorp is derived from various sources, including deposits made by the federal government of the United States, state and local governments within the United States, commercial banks and other depository institutions operating within the United States, banks located in foreign countries, and official institutions affiliated with foreign governments (FDIC.gov). In 2022, U.S. Bancorp accumulated a sum of $416,605,133 through deposits. The bank's deposit funding originates from diverse accounts, including those containing deposits classified as "transaction deposits." This category represents a significant portion of the entire deposit, amounting to $416,605,133, equivalent to 89.63% of the overall deposit. 15 | Page

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Deposit Funding Chart There is a consistent pattern that can be observed regarding U.S. Bancorp and the underlying elements within the industry that influence the financial performances of the company. This example demonstrates that both the bank and the industry exhibit advantage and disadvantages in comparable areas on their income statements and balance sheets, with the exception of their deposit funding sources. This is demonstrated by the fact that the industry as a whole exhibits strengths and weaknesses in these comparable areas. Although the industry gets the majority of its deposit funding from local accounts, U.S. Bancorp and the industry both get their deposit financing from overseas accounts. However, the industry gets its deposit financing from foreign accounts. 16 | Page

Conclusion In conclusion, U.S. Bancorp has shown consistent performance despite the presence of a variety of risks, such as shifts in the economic climate, shifts in interest rate environments, volatile market conditions, and political considerations, amongst others. In light of the findings of this inquiry, it has been established that U.S. Bancorp's presence in a variety of countries around the world makes a major contribution to the company's continuous success. The examination of US Bancorp's financial indicators spanning from 2000 to 2022 yields significant observations regarding the firm's operational effectiveness and fiscal soundness throughout the preceding twenty-year period. Various critical ratios and indicators were evaluated, providing insights into various facets of the company's operations. The Asset Turnover ratio is a metric that measures the efficiency with which a company utilizes its assets to produce income. A greater ratio indicates effective asset use, which has a beneficial impact on the financial performance of the organization. Additionally, it can be observed that US Bancorp heavily relies on debt as a means to finance its assets, as indicated by the Equity Multiplier. Although a higher level of leverage has the potential to enhance returns during periods of profitability, it concurrently heightens financial risk, rendering the company susceptible to economic downturns. The Return on Equity (ROE) and Return on Assets (ROA) ratios, in their respective capacities, serve as indicators of the company's proficiency in generating profits from shareholders' equity and total assets. A steady return on equity (ROE) and return on assets (ROA) indicate stability and efficient resource management. The assessment of a company's profitability is significantly influenced by the Return on Sales, also known as Profit Margin. The presence of fluctuating ratios suggests that US Bancorp has seen periods of both above and below profit margins throughout the span of two decades. Nevertheless, the financial institution has consistently maintained a robust level of profitability during the preceding two-year period, demonstrating effective oversight of costs and successful collection of income. In addition, a comprehensive assessment of the company's financial health, risk management practices, and operational efficiency can be obtained by examining various financial indicators such as the Net Interest Margin, Allowance for Loan Losses, Loans to Core Deposits Ratio, Loans to Assets Ratio, Noninterest Income, Cost Efficiency Ratio, and Equity-to-Assets Ratio. Moreover, the emphasis on Noninterest Income, Loan Portfolio, and Deposit Funding underscores the diversification of US Bancorp's revenue sources and the structure of its assets and liabilities, which are pivotal elements in comprehending the company's overarching strategy and exposure to risk. In brief, the examination of US Bancorp's financial indicators spanning the period from 2000 to 2022 demonstrates the company's adept utilization of its assets, consistent profitability, and efficient management of risks and expenses. Nonetheless, it is imperative for investors and 17 | Page

stakeholders to consistently monitor these measures in order to evaluate the company's capacity to adjust to evolving market circumstances and maintain its financial success over time. 18 | Page

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References FDIC | Analysis . (n.d.). https://www.fdic.gov/analysis/ Personal banking from U.S. Bank . (2023, October 16). https://www.usbank.com/index.html BankFind Suite . (n.d.). https://banks.data.fdic.gov/bankfind-suite/financialreporting/details/ 6548? establishedEndRange=10%2F22%2F2023&establishedStartRange=01%2F01%2F179 2&inactiveEndRange=10%2F22%2F2023&inactiveStartRange=01%2F01%2F1970&i ncomeBasis=YTD %2CYTD&institutionType=banks&limitEstablishedDate=false&limitInactiveDate=fa lse&reportPeriod=20221231%2C20230630%2C20221231&reportType=assets- liabilities-and-capital&unitType=%24%2C%24 19 | Page

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