U.S. Bancorp Company Profile and Valuation

U.S. Bancorp is a leading financial services company with a rich history dating back to 1863. It was founded by Henry Hastings Sibley and has since grown to become one of the largest banks in the United States.

U.S. Bancorp offers a wide range of financial services, including banking, lending, and investment products. Its services are available to individuals, businesses, and institutions across the country.

The company has a significant presence in the Midwest and West Coast regions, with over 3,000 branches and 5,000 ATMs. This extensive network provides customers with convenient access to their financial services.

U.S. Bancorp is a publicly traded company listed on the New York Stock Exchange under the ticker symbol USB.

U.S. Bancorp's history dates back to 1863, when First National Bank of Cincinnati was founded under National Charter #24, one of the oldest active national bank charters in the nation. This marked the beginning of the company's long and storied past.

The company's name has undergone several changes over the years, with the United States National Bank of Portland being established in 1891 and eventually changing its name to the United States National Bank of Oregon in 1964.

The acquisition of U.S. Bancorp of Oregon by First Bank System in 1997 marked a significant turning point for the company, with the newly merged entity taking the U.S. Bancorp name and eliminating approximately 4000 jobs, mostly in Portland.

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The U.S. Bank name first appeared as United States National Bank of Portland, established in Portland, Oregon, in 1891.

In 1902, it merged with Ainsworth National Bank of Portland, but kept the U.S. National Bank name. The central part of the franchise dates from 1864, with the formation of First National Bank of Minneapolis.

First National Bank of Cincinnati opened for business on July 13, 1863 under National Charter #24, one of the oldest active national bank charters in the nation. U.S. Bancorp claims 1863 as its founding date.

John Elorriaga retired as chairman of the board and chief executive officer in November 1987 and was replaced by Roger L. Breezley. Edmund P. Jensen was given the post of chief operating officer in addition to his duties as president in November 1991.

In July 2010, U.S. Bancorp sold its FAF Advisors subsidiary to Nuveen Investments for $80 million. The acquisition was completed in August 1997, and approximately 4000 jobs were eliminated, mostly in Portland.

First Bank System announced the pending acquisition of U.S. Bancorp of Oregon for $9 billion in stock in March 1997. The acquisition was completed in August 1997, and the newly merged company was headquartered in Minneapolis.

U.S. Bancorp announced that it was acquiring the $123 billion municipal and corporate bond trustee business from SunTrust in July 2006. The acquisition was completed in February 2007, and nearly doubled the branch presence of U.S. Bank in Montana.

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U.S. Bank has a long history of making a positive impact on the communities it serves. The company has been a leader in corporate social responsibility, with a commitment to creating access and building wealth in diverse communities.

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The bank's Access Commitment initiative is a key part of this effort, with a focus on providing access to capital and financial education to address the racial wealth gap. This initiative includes a $25 million microbusiness fund for women of color and a mortgage program to promote homeownership.

U.S. Bank has made a significant investment in this initiative, with a prior commitment of $116 million. This shows a long-term commitment to creating systemic change and addressing the racial wealth gap, particularly within the Black community.

The bank's efforts are not just about providing financial resources, but also about creating opportunities for career advancement and education. This comprehensive approach is helping to create a more equitable and inclusive society.

U.S. Bank has a strong presence in many cities across the United States. They have corporate buildings in various locations, including Phoenix, Arizona, and Sacramento, California.

Some of their notable corporate buildings include the U.S. Bank Tower in Los Angeles, California, which is the third tallest building west of the Mississippi River. The U.S. Bank Building in Chicago, Illinois, is another notable example.

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Here are some of the notable corporate buildings owned by U.S. Bank:

The Oregon Era was a significant time for U.S. Bancorp, marked by a major acquisition in 1997. First Bank System, based in Minneapolis, Minnesota, acquired U.S. Bancorp of Oregon for $9 billion in stock.

This acquisition led to the creation of a new company, with First Bank System as the nominal survivor, and the newly merged company was headquartered in Minneapolis. The U.S. Bancorp name was retained.

Approximately 4000 jobs were eliminated, mostly in Portland, as a result of the acquisition.

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U.S. Bank has a notable presence in various cities across the United States. Their corporate buildings can be found in major metropolitan areas.

The U.S. Bank Tower in Los Angeles, California, is the third tallest building west of the Mississippi River. This impressive structure is a notable landmark in the city.

In the Midwest, U.S. Bank has a strong presence with buildings in Minneapolis, Minnesota, and Chicago, Illinois. The U.S. Bank Building in Chicago is one such example.

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Here's a list of some notable U.S. Bank corporate buildings:

One notable building that stands out is the U.S. Bank Tower in Denver, Colorado.

U.S. Bancorp has a history of paying quarterly dividends to its shareholders.

The quarterly dividend is $0.42 per common share, and the annual dividend is $1.68 per common share.

This dividend is payable on April 15, 2021, to shareholders who are on record as of March 31, 2021.

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U.S. Bancorp is a diversified financial services company that offers a wide range of products and services.

Its portfolio includes savings and checking accounts, certificate of deposits, consumer and business loans, and more. It primarily operates in the Midwest and West regions of the US.

The company provides various financial solutions, such as asset and wealth management, and financial planning services.

U.S. Bancorp is headquartered in Minneapolis, Minnesota.

Here are some of the key financial services offered by U.S. Bancorp:

Valuation is a crucial aspect of financial analysis, and it's essential to understand the key metrics involved. The P/E ratio, or price-to-earnings ratio, is a commonly used metric to gauge a company's valuation. The P/E ratio for US Bancorp in 2024 is 12.6x.

The P/E ratio is a ratio of the market price per share to the earnings per share. A lower P/E ratio may indicate that a company's stock is undervalued, while a higher P/E ratio may suggest that it's overvalued. In 2025, the expected P/E ratio for US Bancorp is 11x.

Enterprise value (EV) is another important metric that provides a more comprehensive view of a company's valuation. The EV for US Bancorp in 2024 is $74.54B. This metric takes into account the company's market capitalization, debt, and cash.

To help illustrate the differences in valuation, let's take a look at the following table:

Note how the P/E ratio and EV/Sales ratio both decrease from 2024 to 2025, indicating a potential decrease in valuation.

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U.S. Bancorp has announced a quarterly dividend of $0.42 per common share.

This dividend will be payable on April 15, 2021, to shareholders who are on record as of March 31, 2021.

The annual dividend for common shareholders will be $1.68 per share.

Dividends for non-cumulative perpetual preferred stocks have also been declared, with amounts ranging from $202.778 to $875.000 per share.

These preferred stock dividends will also be payable on April 15, 2021, to eligible shareholders.

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U.S. Bancorp's sales and revenue are a significant aspect of the company's financial performance. In 2023, the company's sales from Wealth, Corporate, Commercial and Institutional Banking reached $9.94 billion.

The company's Consumer and Business Banking segment has seen some fluctuations, with sales reaching $8.34 billion in 2019, $9.3 billion in 2020, $8.72 billion in 2021, $8.23 billion in 2022, and $9.91 billion in 2023.

Payment Services have remained relatively stable, with sales ranging from $4.97 billion in 2020 to $5.36 billion in 2023. In contrast, Wealth Management and Investment Services experienced significant growth, with sales increasing from $2.84 billion in 2020 to $4.17 billion in 2022. However, the sales figure for 2023 is not available.

Sales by Activity is a key metric for understanding how businesses like US Bancorp generate revenue. The bank's sales by activity can be broken down into several categories.

Consumer and Business Banking was a significant contributor to US Bancorp's sales, with $8.34 billion in sales for the fiscal period ending in 2019. This category saw a slight increase to $9.3 billion in 2020.

Payment Services also saw a notable amount of sales, with $5.09 billion in 2019 and $4.97 billion in 2020. Despite a slight dip in 2020, the category has maintained a steady sales figure since then.

Wealth Management and Investment Services experienced a notable increase in sales, jumping from $2.96 billion in 2019 to $4.17 billion in 2022. This category is likely to be an area of focus for the bank moving forward.

Here's a breakdown of the bank's sales by activity for the fiscal period ending in 2023:

The bank's Treasury and Corporate Support category saw a significant improvement in sales, increasing from -$1.35 billion in 2020 to $653 million in 2023. This category's sales have been steadily increasing over the past few years.

Let's take a closer look at the sales geography of US Bancorp, and I'm excited to share some insights with you.

The US market is where US Bancorp generates the majority of its sales revenue.

In the fiscal period of December 2023, the US market accounted for a significant portion of the company's sales.

Here's a breakdown of US Bancorp's sales geography over the past few years:

As you can see, the US market has been a consistent source of revenue for US Bancorp, with sales revenue increasing in 2021 and 2023.

U.S. Bancorp has a diverse and experienced leadership team. Andrew Cecere has been the Chairman since 2018, bringing over 30 years of banking experience to the role.

The company's board of directors includes a mix of seasoned executives and industry experts. Roland Hernandez, for example, has been a director since 2012 and has a strong background in finance. Scott Wine, another director, has been on the board since 2014 and has a proven track record in leadership.

Here are some key members of the U.S. Bancorp leadership team:

After the takeover by Firstar, Jerry Grundhofer continued as president and CEO of the combined company.

The merger agreement also specified that John Grundhofer, the chairman of U.S. Bancorp at the time, would serve as chairman of the board in the combined company until his planned retirement on December 31, 2002.

To facilitate the merger, Firstar was required to sell 11 branch offices in the Minneapolis area and 2 in Council Bluffs, Iowa.

The U.S. Department of Justice enforced this condition to ensure competition in the banking industry.

Bremer Bank of Saint Paul, Minnesota, and Liberty Bank of West Des Moines, Iowa, purchased the respective offices.

In 2008, the U.S. Treasury invested $6.6 billion in preferred stock and warrants in the company, which was a significant financial boost.

This investment was made through the Emergency Economic Stabilization Act of 2008.

U.S. Bancorp had initially planned to use this investment to expand into new markets, but ultimately decided to pursue other opportunities.

The bank's leadership had to consider the impact of major divestments in Midwestern states, especially Ohio, if they had pursued their original plan.

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The board of directors plays a crucial role in the leadership and governance of a company. Andrew Cecere serves as the Chairman of the board, a position he has held since 2018.

The board members are a diverse group of individuals with varying backgrounds and expertise. Roland Hernandez, for instance, has been a director since 2012.

Here are some key facts about the board members:

The board members bring a wealth of experience and expertise to the table, with some members having been in their positions for over a decade. This level of continuity is beneficial for the company, as it allows for stability and consistency in decision-making.

Analysts' Recommendations play a significant role in shaping investors' decisions.

Goldman Sachs has adjusted its price target for U.S. Bancorp to $51 from $49, while maintaining a Neutral Rating.

Investors often rely on analysts' recommendations to make informed decisions about their investments.

Goldmans Sachs has also adjusted its price target on U.S. Bancorp to $49 from $50.

In some cases, analysts' recommendations can be a good indicator of a company's potential for growth.

Oppenheimer has adjusted its price target on U.S. Bancorp to $63 from $62, while keeping its Outperform Rating.

Here's a summary of recent analyst recommendations for U.S. Bancorp:

Piper Sandler has adjusted its price target on U.S. Bancorp to $55 from $58, while keeping its Overweight Rating.

Scott Ford has joined U.S. Bank as president of Wealth Management Affluent, a role that will enable the bank to enhance its integrated wealth management services for affluent clients.

Ford brings over 20 years of experience from JP Morgan Chase and Citibank, where he focused on team leadership and growth strategies.

He will lead a nationwide network of wealth management professionals, aiming to deliver value-added solutions to clients.

U.S. Bank continues to expand its comprehensive financial services, which include wealth planning, investment management, and trust services.

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U.S. Bancorp's financial performance has been impressive, with net income reaching $7.3 billion in 2020. This is a significant increase from the $6.5 billion reported in 2019.

The company's revenue has also seen steady growth, reaching $23.4 billion in 2020. This is attributed to the bank's diversified business model, which includes consumer and commercial banking, payment services, and wealth management.

Net interest income accounted for the majority of U.S. Bancorp's revenue, making up 64% of the total. Non-interest income, however, also played a significant role, contributing 36% of the total revenue.

U.S. Bancorp's efficiency ratio has improved over the years, reaching 60.3% in 2020. This indicates that the company has been able to manage its expenses effectively, allowing it to maintain a strong financial position.

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U.S. Bancorp has made several notable announcements in recent years.

The company has been recognized for its commitment to diversity and inclusion, earning a perfect score on the Human Rights Campaign's Corporate Equality Index.

U.S. Bancorp has also been recognized for its community development efforts, investing over $1 billion in community development programs since 2007.

The company has a long history of supporting local communities, with a presence in 25 states and more than 3,000 branches.

U.S. Bancorp has made some significant announcements recently. U.S. Bancorp Appoints Felicia La Forgia and Sekou Kaalund as Managing Committee members.

The banking sector is getting some major updates. Global markets are live and watching stocks like Nvidia, Boeing, Starbucks, LVMH, and ASML.

Goldman Sachs has taken a closer look at U.S. Bancorp's price target. They've adjusted it to $51 from $49 and maintained a neutral rating.

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U.S. Bancorp is also making some internal changes. Gunjan Kedia is set to become the bank's first female CEO in April.

U.S. Bank National Association recently announced the redemption of all outstanding 3.15% Senior Notes and Floating Rate Senior Notes on March 26, 2021.

The redemption will be processed at $1,000 per $1,000 principal, plus accrued interest, excluding the redemption date. Payments will be made through The Depository Trust Company.

The company is known for its commitment to ethical practices and climate action. As of December 31, 2020, U.S. Bancorp had nearly 70,000 employees and $554 billion in assets, making it the fifth-largest commercial bank in the U.S.

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U.S. Bank is teaming up with professional golfer Collin Morikawa in a multi-year sponsorship deal.

Collin Morikawa is a top-ranked golfer, currently ranked 4th in the Official World Golf Rankings.

He's a talented young player who has already achieved four PGA TOUR titles, the most by any player under 25.

U.S. Bank is excited to align its brand with Morikawa's success and community-driven initiatives.

As part of the partnership, Morikawa will feature U.S. Bank branding on his golf bag.

This is a great move for U.S. Bank, as it will allow them to reach a wider audience and build brand awareness.

Collin Morikawa is a winner of the 2020 PGA Championship, which is a significant achievement in the golf world.

U.S. Bank has launched a new approach to build wealth and create access for diverse communities. This initiative is a significant step towards addressing the racial wealth gap.

The Access Commitment initiative includes a $25 million microbusiness fund specifically for women of color. This fund aims to provide access to capital and financial education.

A mortgage program is also part of the initiative to promote homeownership. This is a key aspect of building wealth and creating a stable financial future.

U.S. Bank is committed to providing improved career opportunities for diverse employees. This is a vital step towards creating a more inclusive and equitable workplace.

The bank has already invested $116 million in its previous efforts to address the racial wealth gap. This new initiative builds on this foundation and aims for systemic change.

Scott Ford, a seasoned financial expert, has joined U.S. Bank as president of Wealth Management Affluent. He brings over 20 years of experience from JP Morgan Chase and Citibank.

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US Bancorp's stock price has been fluctuating over the past few days. On January 31, the price was $47.78, with a change of -0.46% from the previous day.

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The stock price increased by 0.71% on January 30, closing at $48.00. This was a significant contrast to the previous day's price of $47.66, which had a change of -1.61%.

On January 29, the stock price was $47.66, with a volume of 15,331,766. This was a significant decrease from the previous day's price of $48.44.

Here's a breakdown of the stock price changes over the past few days:

The current stock price is $47.78, with a 1-day change of -0.46%.

U.S. Bancorp has been making headlines with its recent press releases. U.S. Bank Avvance partners with Magwitch to expand its point-of-sale lending offering to more customers.

U.S. Bank has been busy announcing new appointments to its Managing Committee. Felicia La Forgia and Sekou Kaalund have been appointed to this key role.

Gunjan Kedia is set to take over as CEO of U.S. Bancorp in mid-April. This marks an exciting new chapter for the company.

Here are some key press releases from U.S. Bancorp: