U.S. Bancorp

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"US Bank" redirects here. For other uses, see Bank of the United States.
U.S. Bancorp
Public company
Traded as NYSEUSB
S&P 100 Component
S&P 500 Component
Industry Banking, Financial services
Founded September 9, 1968; 48 years ago (1968-09-09)
Headquarters Minneapolis, Minnesota
Number of locations
3,106 branches and 4,842 ATMs[1]
Key people
[1]
Products Credit cards
consumer banking
corporate banking
investment banking
global wealth management
financial analysis
private equity
Revenue Increase US$21.494 billion (2016)[1]
Increase US$8.105 billion (2016)[1]
Increase US$5.944 billion (2016)[1]
Total assets Increase US$445.964 billion (2016)[1]
Total equity Increase US$47.933 billion (2016)[1]
Number of employees
71,191 (2016)[1]
Capital ratio 9.1%[1] Tier 1 (12/2016)
Rating Long Term Senior Debt
Moody's: A1 (10/2016)
S&P: A+ (10/2016)
Fitch: AA (10/2016)
DBRS: AA (10/2016)
Website usbank.com

U.S. Bancorp is a bank holding company based in Minneapolis, Minnesota. It is the parent company of U.S. Bank, National Association, known as U.S. Bank, which is ranked 5th on the list of largest banks in the United States. The company provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, governmental entities, and other financial institutions. It has 3,106 branches and 4,842 ATMs, primarily in the Midwestern United States.[1]

History[edit]

Downtown Minneapolis; U.S. Bancorp Center is the second unobstructed tower from the left.
First Bank System used this logo from 1979. It incorporates the silhouette of the number one.

The U.S. Bank name first appeared as United States National Bank of Portland, established in Portland, Oregon, in 1891. It changed its name to the United States National Bank of Oregon in 1964. In 1902, it merged with Ainsworth National Bank of Portland, but kept the U.S. National Bank name. The decision turned out to be advantageous for the bank, as a 1913 federal law prohibited other banks from using “United States” in their names from that time forward. U.S. National was among the first banks to form a bank holding company — called U.S. Bancorp, on September 9, 1968.[citation needed]

The central part of the franchise dates from 1864, with the formation of First National Bank of Minneapolis. In 1929, that bank merged with First National Bank of St. Paul (also formed in 1864) and several smaller Upper Midwest banks to form the First Bank Stock Corporation, which changed its name to First Bank System in 1968.[2][3][4]

In the eastern part of the franchise, Farmers and Millers Bank in Milwaukee opened its doors in 1853, growing into the First National Bank of Milwaukee and eventually becoming First Wisconsin and ultimately Firstar. In Cincinnati, First National Bank of Cincinnati opened for business in 1863 under National Charter #24—the charter that U.S. Bancorp still operates under today, and one of the oldest active national bank charters in the nation. Despite having started up in the midst of the Civil War, First National Bank of Cincinnati would go on to survive many decades to grow into Star Bank.[citation needed]

These banks thrived as independent entities. As opportunities arose, each participated in in-market mergers and acquisitions during the early decades of the 20th century and in more widespread expansions during the 1980s and 1990s — including the 1993 transaction that brought Colorado National Bank in Denver into the First Bank System, and West One Bancorp of Boise, Idaho, coming into the original U.S. Bancorp in 1995.[citation needed]

Mergers and acquisitions[edit]

US Bank in Hudson, Ohio

In 1997, U.S. Bancorp of Oregon merged into First Bank System, keeping the U.S. Bancorp name but moving the headquarters to Minneapolis.[5]

In 1999, U.S. Bancorp expanded into California by acquiring Western Bancorp for $904 million.[6]

In 1999, Firstar Corporation of Milwaukee acquired Star Bank of Cincinnati[7] and Mercantile Bancorporation.[8]

In 2001, Firstar bought U.S. Bancorp in a $21 billion transaction, keeping the U.S. Bancorp name but moving the headquarters to Minneapolis.[9]

On November 14, 2008, the U.S. Treasury invested $6,599,000,000 in preferred stock and warrants in the company via the Emergency Economic Stabilization Act of 2008.[10]

On November 21, 2008, the company purchased Downey Savings & Loan Association and Pomona First Federal Bancorp in a transaction facilitated by the Federal Deposit Insurance Corporation.[11]

On June 17, 2009, the company redeemed the $6.6 billion of preferred stock and on July 15, 2009, it completed the purchase of a warrant held by the U.S. Treasury Department. This effectively concluded U.S. Bancorp’s participation in the Capital Purchase Program. It was the first bank to repay the Troubled Asset Relief Program (TARP) funds.[12]

On October 5, 2009, the company announced its acquisition of the mutual fund administration and accounting servicing division of Fiduciary Management, Inc.[13]

On October 7, 2009, the company agreed to buy the bond trustee business of First Citizens Bank, a subsidiary of First Citizens BancShares Inc.[14]

On October 20, 2009, the company completed a transaction to purchase FBOP Corporation’s nine subsidiary banks from the FDIC: BankUSA, National Association (AZ), Cal National Bank (CA), Citizens National Bank (TX), Community Bank of Lemont (IL), Madisonville State Bank (TX), North Houston Bank (TX), Pacific National Bank (CA), Park National Bank (IL), and San Diego National Bank (CA).[15]

The company subsequently sold the three banks in Texas in 2010 to Houston-based Prosperity Bancshares.[16])

In January 2010, the company acquired the Nevada banking operations of BB&T Corp.[17]

On January 28, 2011, the company acquired the assets and deposits of First Community Bank of New Mexico in a transaction facilitated by the FDIC.[18]

On January 27, 2012, the company acquired the assets and deposits of failed Knoxville, Tennessee-based BankEast in a transaction facilitated by the FDIC.[19]

In 2014, the company acquired 94 branches of Charter One Bank in Chicago from RBS Citizens Financial Group, doubling its market share in Chicago.[20]

Lines of business[edit]

One US Bank Tower in downtown St. Louis, Missouri
The US Bank tower in downtown Denver, Colorado
US Bank tower in Salt Lake City, Utah
US Bank Center in Milwaukee, Wisconsin
US Bank Building in Sheboygan, Wisconsin

U.S. Bancorp operates four main lines of business that serve individuals, businesses of all sizes, municipalities and other financial institutions.

U.S. Bancorp and its subsidiaries, including U.S. Bank, provide a selection of financial products and services to individuals, businesses, nonprofit organizations, institutions, and government entities. U.S. Bank products and services are distributed primarily through four major lines of business.

Consumer Banking delivers products and services to the consumer market and small businesses, and encompasses community banking, metropolitan banking, small business banking, consumer lending, mortgage banking, workplace banking, student banking, 24-hour banking, and investment products from U.S. Bank and investments, brokerage, financial planning and insurance products and services from U.S. Bancorp Investments, Inc., an affiliate of U.S. Bank.

Wholesale Banking offers lending, depository, treasury management, and other financial services to middle-market, large corporate, and public-sector clients.

Payment services[edit]

Through its payment services line of business, U.S. Bancorp delivers payment solutions and services for individuals and businesses across the globe.[citation needed]

Elavon is a wholly owned U.S. Bancorp subsidiary providing merchant processing services worldwide.[citation needed]

These divisions are also part of Payment Services:

  • Corporate Payment Systems
  • Elavon: Credit, debit, electronic check, and gift card merchant processing
  • Retail Payment Solutions: debit, credit, small business, gift and specialty card issuance
  • Healthcare Payment Solutions
  • Financial Institution services[citation needed]

Wholesale banking[edit]

U.S. Bancorp’s wholesale banking business line serves large companies, nonprofit organizations and municipalities. It provides deposit services, payments, treasury management services, financing, leasing, investments, and international trade financing.
These functions are a part of wholesale banking at U.S. Bancorp:

  • National Corporate Banking
  • Middle Market Commercial Banking
  • Commercial Real Estate
  • Correspondent Banking
  • Dealer Commercial Services
  • Foreign Exchange
  • Government Banking
  • International Banking
  • Treasury Management
  • Business Equipment Finance & Leasing
  • Small Business Administration (SBA) Division
  • Specialized Industries and Finance
  • Title Industry Banking
  • Homeowners Association Banking[citation needed]

Wealth Management & Securities Services[edit]

U.S. Bancorp’s Wealth Management & Securities Services business line provides services for individuals, institutions, businesses and municipalities to help build, manage, preserve and protect wealth, as well as provide custody, delivery and obligation services.[citation needed]

Included in this business line are:

  • The Private Client Reserve[21]
  • Ascent Private Capital Management[22]
  • U.S. Bancorp Investments, Inc.
  • U.S. Bancorp Insurance Services, LLC
  • Corporate Trust Services
  • Institutional Trust & Custody
  • U.S. Bancorp Asset Management, Inc. (formerly FAF Advisors, Inc.)
  • U.S. Bancorp Fund Services, LLC[citation needed]

Consumer banking[edit]

U.S. Bancorp’s consumer banking division serves consumers and small businesses. This line of business includes:

  • Community Banking
  • Metropolitan Branch Banking
  • In-store and Corporate On-Site Banking
  • Small Business Banking
  • Consumer Lending
  • 24-Hour Banking & Financial Sales
  • Home Mortgage
  • Community Development
  • Workplace and Student Banking
  • Transaction Services: ATM and Debit Processing and Services[citation needed]

Overdraft litigation[edit]

U.S. Bank has struggled to comply with the laws and regulations of the Electronic Fund transfers Act. [23] U.S. Bank is currently involved in a dispute with its insurers over a $55 million settlement agreement arising out of three class action lawsuits for alleged excessive overdraft fee and "biggest check first" [24] charge processing claims. [25]

Rankings and awards[edit]

In the 2013 Temkin Group ratings, U.S. Bank was ranked third best in customer service within the banking industry and #36 of 235 companies across 19 industries nationwide. The report reflected the bank's strong gains over a 12-month period, emerging from its 2012 rating of tenth place among banks and #126 overall. In a separate Temkin Group insight report, U.S. Bank placed fifth of 211 companies nationwide for providing praiseworthy Web user experience. It was an improvement from #33 in 2012.[26]

U.S. Bancorp footprint

Interesting facts[edit]

U.S. Bancorp operates under the second-oldest continuous national charter, originally Charter #24, granted during Abraham Lincoln’s administration in 1863 following the passage of the National Banking Act. Earlier charters have expired as banks were closed or acquired, raising U.S. Bank from #24 to #2. (The oldest national charter, originally granted to the First National Bank of Philadelphia, is held by Wells Fargo, which it obtained upon its merger with Wachovia.)[27]

U.S. Bank helped to finance Charles Lindbergh’s historic flight across the Atlantic.[28]

Namesake buildings[edit]

See also[edit]

References[edit]

  1. ^ a b c d e f g h i j U.S. Bancorp 2016 Form 10-K Annual Report
  2. ^ "Funding Universe: U.S. Bancorp - Company History". Fundinguniverse.com. 
  3. ^ "First Bank System, Inc. (American company)". Britannica.com Inc. 
  4. ^ [http://www.americasgreatestbrands.com/volume3/18446a.htm America's Greatest Brands: U.S. Bank}}
  5. ^ HANSELL, SAUL (March 21, 1997). "First Bank System to Buy U.S. Bancorp of Oregon". New York Times. 
  6. ^ Cahill, Joseph B. (May 20, 1999). "U.S. Bancorp Agrees, for $904 Million In Stock, to Acquire Western Bancorp". Wall Street Journal. ISSN 0099-9660. 
  7. ^ "Midwest banks set merger". CNN. July 1, 1998. 
  8. ^ "Midwest banks in $10.6B deal". CNN. April 30, 1999. 
  9. ^ ATLAS, RIVA D. (October 5, 2000). "U.S. Bancorp to Be Acquired By Firstar for $21 Billion". New York Times. 
  10. ^ UNITED STATES DEPARTMENT OF THE TREASURY INITIAL SECTION 105(a) TROUBLED ASSET RELIEF PROGRAM REPORT TO CONGRESS FOR THE PERIOD OF OCTOBER 6, 2008 TO NOVEMBER 30, 2008
  11. ^ "U.S. Bank Acquires Downey Savings & Loan and PFF Bank & Trust Through an FDIC Facilitated Transaction" (Press release). Business Wire. November 21, 2008. 
  12. ^ Serres, Chris (June 17, 2009). "U.S. Bancorp repays TARP bailout funds to Treasury". Star Tribune. 
  13. ^ "U.S. Bancorp (USB) Fund Services Acquires Mutual Fund Administration and Accounting Service Division of Fiduciary Management". Street Insider. October 5, 2009. 
  14. ^ Temple-West, Patrick (October 14, 2009). "U.S. Bank Bulks Up By Buying First Citizens' Bond Trustee Unit". Bond Buyer. 
  15. ^ "U.S. Bank Acquires FBOP Corporation's Banking Subsidiaries Through an FDIC Facilitated Transaction" (Press release). Business Wire. October 30, 2009. 
  16. ^ http://www.sec.gov/Archives/edgar/data/1068851/000119312510008896/dex991.htm
  17. ^ "U.S. Bank Completes Purchase of Nevada Banking Operations from BB&T Corporation" (Press release). Business Wire. January 19, 2010. 
  18. ^ "U.S. Bank Acquires First Community Bank Through an FDIC Facilitated Transaction" (Press release). Business Wire. January 28, 2011. 
  19. ^ "U.S. Bank Acquires Banking Operations of BankEast Corporation of Tennessee Through an FDIC-Facilitated Transaction" (Press release). Business Wire. January 27, 2012. 
  20. ^ Yerak, Becky (June 23, 2014). "Former Charter One branches open as U.S. Bank". Chicago Tribune. 
  21. ^ "Private Client Reserve". USBank.com. April 2013. Retrieved 2013-06-05. 
  22. ^ "Ascent Private Capital Management". USBank.com. Retrieved 2013-06-05. 
  23. ^ [Federal Reserve Regulation E, Fedral Reserve, http://www.federalreserve.gov/boarddocs/supmanual/cch/efta.pdf]
  24. ^ [Scott J. Kreppein, Dissent of Man Law Blog, "Potential Tide Turning Victory in The Battle Against Illegal Non-Sufficient Fund and Overdraft Fees: Bank of America Settles Closson Class Action," http://kreppein.blogspot.com/2009/02/california-class-action-against-bank-of.html] [See also Kreppein, Dissent of Man Law Blog, "The UK Takes Steps to Curb Illegal Overdraft Fees, But US Efforts Have Not Been So Well Received," http://kreppein.blogspot.com/2007/08/uk-takes-steps-to-curb-illegal.html]
  25. ^ [Gordon Gibb, Lawyers and Settlements blog, https://www.lawyersandsettlements.com/articles/excessive-bank-overdraft-fees/excessive-bank-overdraft-fees-37-21157.html#.Vos6CNCGnzI]
  26. ^ "U.S. Bank Soars in 2013 Temkin Customer Service and Web Experience Ratings". The Wall Street Journal. 
  27. ^ Riggs, Charles (July 6, 2009). "Wells Fargo's Charter Number (cont'd)". Wells Fargo. 
  28. ^ "A Rich Heritage". 

External links[edit]