U.S. Bancorp (NYSE: USB) reported Q1 EPS of $0.73, in-line with the analyst estimate of $0.73. Revenue for the quarter came in at $0 versus the consensus estimate of $4.81 billion.

U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “Our first quarter earnings of $1.4 billion, or $.73 per diluted common share, demonstrated our Company’s ability to generate strong results in the face of a slow-growing and uncertain economy. Our industry-leading returns on average assets of 1.56 percent and average common equity of 14.6 percent, combined with our strong efficiency ratio of 52.9 percent, remain among the top performance ratios in our peer group. Our performance clearly reflects the advantage of our diversified business mix and disciplined expense management which has enabled us to withstand the revenue challenges facing our industry in this slow-growth economy.

“Average loan growth remained strong at 6.0 percent year-over-year and 1.3 percent on a linked quarter basis. Total loan and commitment growth continued to be an area of strength for the Bank, particularly highlighted by our commercial business, which grew loans by 8.5 percent year-over-year and 2.8 percent on a linked quarter basis. This growth demonstrates our ability to gain market share as customers choose to partner with us to expand their businesses when opportunities arise.

“Noninterest income was impacted by seasonal factors, reflected in our payments businesses and in lower deposit service fees. Our mortgage banking revenue stabilized, as expected, on a linked quarter basis and declined compared to the prior year. Our diversified revenue mix helped offset this revenue decline and we managed expenses prudently.

“Credit quality continued to be strong in the first quarter as net charge-offs declined 21.2 percent compared with the prior year and rose modestly on a linked quarter basis due to unusually high recoveries in the prior quarter. Nonperforming assets, excluding covered assets, fell by 1.0 percent and delinquencies also improved in the quarter. Overall credit quality is expected to remain relatively stable in the coming quarters.

“On March 20th, the Federal Reserve released the summary results of the Dodd-Frank Act Stress Test and once again, I am proud to report that, compared with our peer banks, our Company posted the highest pre-provision net revenue and net income before taxes as a percent of average assets under the Federal Reserve’s supervisory severely adverse scenario. On March 26th, we received notice of the Federal Reserve’s non-objection to our capital plan and we announced our new share buyback authorization of $2.3 billion, effective April 1, and our intention to recommend to our board of directors a 6.5% increase in our common stock dividend at our June board meeting. These combined actions allow us to maintain our goal of returning 60 – 80 percent of earnings to our shareholders, a goal we again met in the first quarter when we returned 67 percent. Our ability to generate significant capital each quarter allows us to provide this return to our shareholders while maintaining a strong capital position. Our common equity tier 1 capital ratio is 9.0 percent under the Basel III fully implemented standardized approach and 9.7 percent under the transition rules.

“As I shared at our Annual Shareholder Meeting yesterday in Kansas City, our 67,000 employees are focused every day on extending our advantage by delivering outstanding service and the highest quality products. I am grateful to them for their hard work and dedication. I am also grateful to our nearly 18 million customers who trust U.S. Bank with their business. Our business model has shown strength and resilience through times of challenge, change and new opportunities. We are well positioned for the strengthening economic climate and the team is working every day to create value for our shareholders.”

Highlights for the first quarter of 2014 included:

• Growth in average total loans of 6.0 percent over the first quarter of 2013 (7.6 percent excluding covered loans) and 1.3 percent on a linked quarter basis (1.7 percent excluding covered loans)
  • Growth in average total commercial loans of 8.5 percent over the first quarter of 2013 and 2.8 percent over the fourth quarter of 2013
  • Growth in average total commercial real estate loans of 7.6 percent over the first quarter of 2013 and 1.9 percent over the fourth quarter of 2013
  • Growth in average commercial and commercial real estate commitments of 11.7 percent year-over-year and 3.4 percent over the prior quarter
• Strong new lending activity of $41.0 billion during the first quarter, including:
  • $26.9 billion of new and renewed commercial and commercial real estate commitments
  • $2.6 billion of lines related to new credit card accounts
  • $11.5 billion of mortgage and other retail loan originations
• Strong growth in average total deposits of 5.1 percent over the first quarter of 2013
  • Average low cost deposits, including noninterest-bearing and total savings deposits, grew by 7.7 percent year-over-year and were stable on a linked quarter basis
• Industry-leading performance ratios, including:
  • Return on average assets of 1.56 percent
  • Return on average common equity of 14.6 percent
  • Efficiency ratio of 52.9 percent
• Net charge-offs declined 21.2 percent on a year-over-year basis. Provision for credit losses was $35 million less than net charge-offs
  • Allowance to period-end loans was 1.89 percent at March 31, 2014
  • Annualized net charge-offs to average total loans ratio was .59 percent
• Nonperforming assets decreased on both a linked quarter and a year-over-year basis
  • Nonperforming assets (excluding covered assets) decreased 1.0 percent on a linked quarter basis and 11.6 percent from the first quarter of 2013
  • Allowance to nonperforming assets (excluding covered assets) was 243 percent at March 31, 2014, compared with 242 percent at December 31, 2013, and 221 percent at March 31, 2013
• Capital generation continued to reinforce capital position and returns. Ratios at March 31, 2014, were:
  • Basel III transitional:
    • Common equity tier 1 capital ratio of 9.7 percent
    • Tier 1 capital ratio of 11.4 percent
    • Total risk based capital ratio of 13.5 percent
  • Common equity tier 1 capital to risk-weighted assets estimated for the Basel III fully implemented standardized approach of 9.0 percent
  • Returned 67 percent of first quarter earnings to shareholders through dividends and the buyback of 12 million common shares
• Received the Federal Reserve’s non-objection to our capital plan on March 26, 2014
  • Announced a new share repurchase authorization of $2.3 billion, effective April 1st
  • Expect to recommend a second quarter dividend of $0.245 per common share, a 6.5 percent increase over the current dividend rate

For earnings history and earnings-related data on U.S. Bancorp (USB) click here.