Supplemental Business Line
Schedules
1Q 2022
CORPORATE AND COMMERCIAL BANKING
CONSUMER AND BUSINESS BANKING
WEALTH MANAGEMENT AND INVESTMENT SERVICES
PAYMENT SERVICES
TREASURY AND CORPORATE SUPPORT
LINE OF BUSINESS FINANCIAL PERFORMANCE (a)
($ in millions)
Net Income Attributable to U.S. BancorpPercent ChangeBusiness Line
1Q 2022
4Q 2021
1Q 2021
1Q22 vs
1Q22 vs
4Q21
1Q21
Corporate and Commercial
Banking
$418
$313
Consumer and Business
Banking
393
485
Wealth Management and
Investment Services Payment Services Treasury and Corporate
206 372
202 371
Support
Consolidated Company
168 $1,557
302 $1,673
$469 575 225 487 524
33.5 (10.9)
(19.0) (31.7)
2.0 (8.4)
.3 (23.6)
(44.4) (67.9)
$2,280 (6.9) (31.7)
(a) preliminary data
Lines of Business
The Company's major lines of business are Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment Services, Payment Services, and Treasury and Corporate Support. These operating segments are components of the Company about which financial information is prepared and is evaluated regularly by management in deciding how to allocate resources and assess performance. Business line results are derived from the Company's business unit profitability reporting systems by specifically attributing managed balance sheet assets, deposits and other liabilities and their related income or expense. Designations, assignments and allocations change from time to time as management systems are enhanced, methods of evaluating performance or product lines change or business segments are realigned to better respond to the Company's diverse customer base. During 2022, certain organization and methodology changes were made and, accordingly, prior period results were restated and presented on a comparable basis.
CORPORATE AND COMMERCIAL BANKING (a)
4Q21 1Q21
1Q | 4Q | 1Q | |||
2022 | 2021 | 2021 | |||
Condensed Income Statement | |||||
Net interest income (taxable-equivalent basis) | $735 | $684 | $719 | 7.5 | 2.2 |
Noninterest income | 245 | 249 | 268 | (1.6) | (8.6) |
Securities gains (losses), net | -- | -- | -- | -- | -- |
Total net revenue | 980 | 933 | 987 | 5.0 | (.7) |
Noninterest expense | 419 | 418 | 409 | .2 | 2.4 |
Other intangibles | -- | -- | -- | -- | -- |
Total noninterest expense | 419 | 418 | 409 | .2 | 2.4 |
Income before provision and taxes | 561 | 515 | 578 | 8.9 | (2.9) |
Provision for credit losses | 3 | 98 | (48) | (96.9) | nm |
Income before income taxes | 558 | 417 | 626 | 33.8 | (10.9) |
Income taxes and | |||||
taxable-equivalent adjustment | 140 | 104 | 157 | 34.6 | (10.8) |
Net income | 418 | 313 | 469 | 33.5 | (10.9) |
Net (income) loss attributable to | |||||
noncontrolling interests | -- | -- | -- | -- | -- |
Net income attributable to U.S. Bancorp | $418 | $313 | $469 | 33.5 | (10.9) |
Average Balance Sheet Data | |||||
Loans | $115,634 | $106,262 | $101,927 | 8.8 | 13.4 |
Other earning assets | 4,676 | 4,690 | 4,321 | (.3) | 8.2 |
Goodwill | 1,912 | 1,912 | 1,647 | -- | 16.1 |
Other intangible assets | 4 | 4 | 5 | -- | (20.0) |
Assets | 127,651 | 118,035 | 114,069 | 8.1 | 11.9 |
Noninterest-bearing deposits | 62,285 | 65,450 | 56,281 | (4.8) | 10.7 |
Interest-bearing deposits | 86,618 | 75,243 | 71,377 | 15.1 | 21.4 |
Total deposits | 148,903 | 140,693 | 127,658 | 5.8 | 16.6 |
Total U.S. Bancorp shareholders' equity | 13,710 | 13,666 | 14,354 | .3 | (4.5) |
(a) preliminary data |
Corporate and Commercial Banking offers lending, equipment finance and small-ticket leasing, depository services, treasury management, capital markets services, international trade services and other financial services to middle market, large corporate, commercial real estate, financial institution, non-profit and public sector clients.
Corporate and Commercial Banking contributed $418 million of the Company's net income in the first quarter of 2022, compared with $469 million in the first quarter of 2021. Total net revenue was $7 million (0.7 percent) lower due to a decrease of $23 million (8.6 percent) in total noninterest income, partially offset by an increase of $16 million (2.2 percent) in net interest income. Net interest income increased primarily due to higher loan and deposit balances, partially offset by the impact of loan mix and related yields as well as unfavorable changes in deposit rates. Total noninterest income decreased primarily due to lower corporate bond fees and trading revenue within the capital markets business, partially offset by stronger treasury management fees due to core growth driven by the economic recovery. Total noninterest expense increased $10 million (2.4 percent) compared with a year ago primarily due to an increase in net shared services expense driven by investment in infrastructure and technology development as well as higher compensation expense primarily due to merit and hiring to support business growth, partially offset by lower performance-based incentives related to capital markets activity. The provision for credit losses increased $51 million compared with the first quarter of 2021 primarily due to loan loss provisions supporting stronger growth in loan balances in the current year linked quarter, partially offset by improving portfolio credit quality in the current year.
CONSUMER AND BUSINESS BANKING (a)
4Q21 1Q21
1Q | 4Q | 1Q | |||
2022 | 2021 | 2021 | |||
Condensed Income Statement | |||||
Net interest income (taxable-equivalent basis) | $1,517 | $1,517 | $1,505 | -- | .8 |
Noninterest income | 461 | 583 | 569 | (20.9) | (19.0) |
Securities gains (losses), net | -- | -- | -- | -- | -- |
Total net revenue | 1,978 | 2,100 | 2,074 | (5.8) | (4.6) |
Noninterest expense | 1,402 | 1,451 | 1,341 | (3.4) | 4.5 |
Other intangibles | 3 | 3 | 3 | -- | -- |
Total noninterest expense | 1,405 | 1,454 | 1,344 | (3.4) | 4.5 |
Income before provision and taxes | 573 | 646 | 730 | (11.3) | (21.5) |
Provision for credit losses | 49 | (1) | (37) | nm | nm |
Income before income taxes | 524 | 647 | 767 | (19.0) | (31.7) |
Income taxes and | |||||
taxable-equivalent adjustment | 131 | 162 | 192 | (19.1) | (31.8) |
Net income | 393 | 485 | 575 | (19.0) | (31.7) |
Net (income) loss attributable to | |||||
noncontrolling interests | -- | -- | -- | -- | -- |
Net income attributable to U.S. Bancorp | $393 | $485 | $575 | (19.0) | (31.7) |
Average Balance Sheet Data | |||||
Loans | $141,106 | $140,865 | $141,719 | .2 | (.4) |
Other earning assets | 4,381 | 6,569 | 10,177 | (33.3) | (57.0) |
Goodwill | 3,261 | 3,262 | 3,475 | -- | (6.2) |
Other intangible assets | 3,176 | 2,966 | 2,493 | 7.1 | 27.4 |
Assets | 157,696 | 159,578 | 164,131 | (1.2) | (3.9) |
Noninterest-bearing deposits | 32,094 | 34,294 | 32,861 | (6.4) | (2.3) |
Interest-bearing deposits | 166,765 | 162,934 | 151,406 | 2.4 | 10.1 |
Total deposits | 198,859 | 197,228 | 184,267 | .8 | 7.9 |
Total U.S. Bancorp shareholders' equity | 12,275 | 12,231 | 12,496 | .4 | (1.8) |
(a) preliminary data |
Consumer and Business Banking delivers products and services through banking offices, telephone servicing and sales, on-line services, direct mail, ATM processing and mobile devices. It encompasses community banking, metropolitan banking and indirect lending, as well as mortgage banking.
Consumer and Business Banking contributed $393 million of the Company's net income in the first quarter of 2022, compared with $575 million in the first quarter of 2021. Total net revenue was lower by $96 million (4.6 percent) due to a decrease in total noninterest income of $108 million (19.0 percent), partially offset by higher net interest income of $12 million (0.8 percent). Net interest income reflected strong growth in interest-bearing deposit balances and favorable funding mix, partially offset by lower loan fees related to the Paycheck Protection Program (PPP). Total noninterest income decreased primarily due to lower mortgage banking revenue reflecting lower application volumes, given declining refinance activities, and lower related gain on sale margins, partially offset by the favorable net impact of the change in fair value of mortgage servicing rights, net of hedging activities, as well as higher performing loan sales. Additionally, other noninterest income decreased due to lower retail leasing end-of-term residual gains. Offsetting these decreases, deposit service charges increased driven by higher customer spend activity, net of the impact of the elimination of certain consumer NSF fees in the first quarter of 2022. Total noninterest expense increased $61 million (4.5 percent) primarily due to increases in net shared services expense due to investments in digital capabilities and higher compensation expense from merit and core business growth. The provision for credit losses increased $86 million due to higher loan loss provisions reflecting relatively stable ending balances and credit quality in the current quarter, compared with balance reductions and credit quality improvement in the prior year linked quarter.
WEALTH MANAGEMENT AND INVESTMENT SERVICES (a)
4Q21 1Q21
1Q | 4Q | 1Q | |||
2022 | 2021 | 2021 | |||
Condensed Income Statement | |||||
Net interest income (taxable-equivalent basis) | $274 | $246 | $268 | 11.4 | 2.2 |
Noninterest income | 596 | 583 | 531 | 2.2 | 12.2 |
Securities gains (losses), net | -- | -- | -- | -- | -- |
Total net revenue | 870 | 829 | 799 | 4.9 | 8.9 |
Noninterest expense | 577 | 550 | 492 | 4.9 | 17.3 |
Other intangibles | 10 | 4 | 2 | nm | nm |
Total noninterest expense | 587 | 554 | 494 | 6.0 | 18.8 |
Income before provision and taxes | 283 | 275 | 305 | 2.9 | (7.2) |
Provision for credit losses | 8 | 5 | 5 | 60.0 | 60.0 |
Income before income taxes | 275 | 270 | 300 | 1.9 | (8.3) |
Income taxes and | |||||
taxable-equivalent adjustment | 69 | 68 | 75 | 1.5 | (8.0) |
Net income | 206 | 202 | 225 | 2.0 | (8.4) |
Net (income) loss attributable to | |||||
noncontrolling interests | -- | -- | -- | -- | -- |
Net income attributable to U.S. Bancorp | $206 | $202 | $225 | 2.0 | (8.4) |
Average Balance Sheet Data | |||||
Loans | $20,666 | $19,614 | $16,846 | 5.4 | 22.7 |
Other earning assets | 259 | 229 | 279 | 13.1 | (7.2) |
Goodwill | 1,761 | 1,656 | 1,619 | 6.3 | 8.8 |
Other intangible assets | 265 | 130 | 42 | nm | nm |
Assets | 24,446 | 22,963 | 20,120 | 6.5 | 21.5 |
Noninterest-bearing deposits | 27,350 | 29,220 | 21,338 | (6.4) | 28.2 |
Interest-bearing deposits | 69,909 | 74,192 | 83,474 | (5.8) | (16.3) |
Total deposits | 97,259 | 103,412 | 104,812 | (5.9) | (7.2) |
Total U.S. Bancorp shareholders' equity | 3,595 | 3,318 | 3,034 | 8.3 | 18.5 |
(a) preliminary data |
Wealth Management and Investment Services provides private banking, financial advisory services, investment management, retail brokerage services, insurance, trust, custody and fund servicing through four businesses: Wealth Management, Global Corporate Trust & Custody, U.S. Bancorp Asset Management and Fund Services.
Wealth Management and Investment Services contributed $206 million of the Company's net income in the first quarter of 2022, compared with $225 million in the first quarter of 2021. Total net revenue increased $71 million (8.9 percent) year-over-year reflecting an increase of $6 million (2.2 percent) in net interest income and an increase of $65 million (12.2 percent) in total noninterest income. Net interest income increased slightly year-over-year primarily due to higher average noninterest-bearing deposits as well as higher average loan balances. Total noninterest income increased primarily due to core business growth in trust and investment management fees and investment products fees both driven by favorable market conditions as well as the impact of the PFM acquisition on trust and investment fees, partially offset by higher fee waivers related to money market funds. Total noninterest expense increased $93 million (18.8 percent) compared with the first quarter of 2021 reflecting the PFM acquisition, compensation expense as a result of merit and performance-based incentives, litigation settlements, fraud related losses and core business growth. The provision for credit losses increased $3 million (60.0 percent) due to increased loan loss provisions supporting stronger growth in ending loans and a modest shift in credit quality in the current period compared with the prior year quarter.
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U.S. Bancorp published this content on 14 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 April 2022 10:54:09 UTC.