S&P 100 Component
S&P 500 Component
|Industry||Banking, Financial services|
|Founded||September 9, 1968|
|Headquarters||Minneapolis, Minnesota, U.S.|
|Products||Credit cards, consumer banking, corporate banking, investment banking, global wealth management, financial analysis, private equity|
Number of employees
Moody's: A1 (7/2016)|
S&P: A+ (7/2016)
Fitch: AA (7/2016)
DBRS: AA (7/2016)
U.S. Bancorp (NYSE: USB) is an American financial services holding company based in Minneapolis, Minnesota, that is the parent company of the U.S. Bank National Association, known as U.S. Bank, the 5th largest commercial bank in the United States. The company, founded in 1929, has $422 billion in assets and operates 3,133 banking offices in 25 states and 4,936 ATMs, and provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, governmental entities, and other financial institutions.
U.S. Bank was formed during the 1990s through the acquisitions of several major regional banks in the West and Midwest. Those banks, in turn, had grown from the mergers of numerous smaller banks throughout the years. Since 1988 U.S. Bank has acquired or merged with over 50 banks.
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.
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.
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.
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.
Mergers and acquisitions
In 1997, U.S. Bancorp merged into First Bank System. Although First Bank System was the surviving company and corporate headquarters stayed in Minneapolis, the merged bank took the U.S. Bancorp name. In the following years, U.S. Bancorp expanded into California by acquiring several small institutions.
In 1999, Firstar merged with Star Bank, and acquired Mercantile five months later. The present-day company was formed when Firstar bought U.S. Bancorp, a deal which closed on February 27, 2001. While Firstar was the surviving company, it changed its name to U.S. Bancorp and moved its headquarters to Minneapolis.
On November 14, 2008, U.S. Bancorp received $6,599,000,000 from the Emergency Economic Stabilization Act in the form of a preferred stock and related warrants. On November 21, 2008 U.S. Bank purchased Downey Savings & Loan Assn FA from Downey Financial Corp and Pomona First Fed Bk & Tr (PFF) from PFF Bancorp Inc. (CA). At year-end 2008, U.S. Bancorp had total assets of $266 billion, and U.S. Bank was the 6th-largest commercial bank within the United States. On June 17, 2009, U.S. Bancorp 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 among the first banks to repay the Troubled Asset Relief Program (TARP) funds.
During October 2009 US Bancorp announced four separate acquisitions:
- On October 5, 2009 US Bancorp announced its acquisition of the mutual fund administration and accounting servicing division of Fiduciary Management, Inc.
- On October 7, 2009 U.S. Bank agreed to buy the bond trustee business of First Citizens Bank, a subsidiary of First Citizens BancShares Inc.
- On October 14, 2009 U.S. Bank agreed to acquire the Nevada banking operations of BB&T Corp.
- On October 20, 2009 US Bancorp completed a transaction to purchase FBOP Corporation’s nine subsidiary banks from the FDIC: BankUSA, National Association (AZ), California 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). (US Bancorp subsequently sold the three banks in Texas in 2010 to Houston-based Prosperity Bancshares.)
On January 28, 2011, US Bancorp acquired the assets and deposits of First Community Bank of New Mexico. That is the first entry into New Mexico, its 25th state.
On January 27, 2012, US Bancorp acquired the assets and deposits of failed Knoxville, Tennessee-based BankEast, which was closed by state regulators. The bank's ten branches were rebranded as US Bank branches the following Monday.
On January 7, 2014, US Bancorp announced that it was acquiring 94 branches of Charter One Bank in Chicago from RBS Citizens Financial Group as of mid-2014. It will double its market share in Chicago.
Lines of business
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.
Through its payment services line of business, U.S. Bancorp delivers payment solutions and services for individuals and businesses across the globe.
Elavon is a wholly owned U.S. Bancorp subsidiary providing merchant processing services worldwide.
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
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
Wealth Management & Securities Services
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.
Included in this business line are:
- The Private Client Reserve
- Ascent Private Capital Management
- 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
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
U. S. Bank has struggled to comply with the laws and regulations of the Electronic Fund transfers Act. 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" charge processing claims.
Rankings and awards
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.
U.S. Bancorp payment and merchant processing services are global, and the wholesale and trust services are national. As of January 28, 2011, the consumer and business banking services are in 25 states including: Arizona, Arkansas, California, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Ohio, Oregon, South Dakota, Tennessee, Utah, Washington, Wisconsin, and Wyoming. It also has operations in Canada and Europe.
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.)
U.S. Bank is the fifth-largest check processor in the nation, handling 4 billion paper checks annually at 12 processing sites. The bank’s air and ground courier fleet moves 15 million checks each day.
- US Bank Center in Phoenix, AZ
- US Bank Plaza in Sacramento, CA
- US Bank Tower in Sacramento, CA
- One California in San Francisco, CA, sports the US Bank logo and houses bank offices
- US Bank Tower in Los Angeles, CA, the tallest building west of the Mississippi River
- US Bank Tower in Denver, CO
- US Bank Plaza in Boise, ID
- US Bank Building in Davenport, IA
- US Bank Building (Duluth, Minnesota) US Bank Building in Duluth, MN
- US Bancorp Center in Minneapolis, MN
- US Bank Plaza in Minneapolis, MN
- U.S. Bank Stadium in Minneapolis, MN
- US Bank Center in St. Paul, MN
- One US Bank Plaza in St. Louis, MO
- US Bank Building in Billings, MT
- US Bank Tower (Lincoln) US Bank Tower in Lincoln, NE
- US Bank Center (Las Vegas) US Bank Center in Las Vegas, NV
- US Bank Arena in Cincinnati, OH
- US Bank Tower (Cincinnati, Ohio) US Bank Tower in Cincinnati, OH
- US Bank Centre in Cleveland, OH
- US Bancorp Tower in Portland, OR
- US Bank Building (Sioux Falls, South Dakota) US Bank Building in Sioux Falls, SD
- US Bank Tower in Nashville, TN
- US Bank Centre in Seattle WA
- US Bank Building (Spokane, Washington) US Bank Building in Spokane, WA
- US Bank Building (La Crosse, Wisconsin) US Bank Building in La Crosse, WI
- US Bank Center in Milwaukee, WI
- US Bank Building (Chicago, Illinois) US Bank Building in Chicago, IL
- U.S. Bancorp Form 10-K, Securities and Exchange Commission, February 21, 2014
- U.S. Bancorp. U.S. Bancorp http://phx.corporate-ir.net/phoenix.zhtml?c=117565&p=irol-homeprofile. Retrieved 9 May 2016. Missing or empty
- "U.S. Bancorp - Company History". Fundinguniverse.com. Retrieved March 16, 2010.
- Encyclopædia Britannica. "First Bank System, Inc. (American company)". Britannica Online Encyclopedia. Britannica.com Inc. Retrieved March 16, 2010.
- "History". AmericasGreatestBrands.com. February 27, 2001. Retrieved March 16, 2010.
- Journal, Joseph B. Cahill Staff Reporter of The Wall Street (1999-05-20). "U.S. Bancorp Agrees, for $904 Million In Stock, to Acquire Western Bancorp". Wall Street Journal. ISSN 0099-9660. Retrieved 2015-02-16.
- "Firstar divisions take on Minneapolis-based U.S. Bancorp name".
- "Private Client Reserve". USBank.com. April 2013. Retrieved 2013-06-05.
- "Ascent Private Capital Management". USBank.com. Retrieved 2013-06-05.
- [Federal Reserve Regulation E, Fedral Reserve, http://www.federalreserve.gov/boarddocs/supmanual/cch/efta.pdf]
- [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]
- [Gordon Gibb, Lawyers and Settlements blog, https://www.lawyersandsettlements.com/articles/excessive-bank-overdraft-fees/excessive-bank-overdraft-fees-37-21157.html#.Vos6CNCGnzI]
- "U.S. Bank Soars in 2013 Temkin Customer Service and Web Experience Ratings". The Wall Street Journal.
- Riggs, Charles (July 6, 2009). "Wells Fargo's Charter Number (cont'd)". Wells Fargo.
- "A Rich Heritage".
|Wikimedia Commons has media related to U.S. Bancorp.|