Full Description

U.S. Bancorp, incorporated in 1929, operates as a financial holding company and a bank holding company. U.S. Bancorp provides a range of financial services, including lending and depository services, cash management, foreign exchange, and trust and investment management services. It also engages in credit card services, merchant and Automated Teller Machine (ATM) processing, mortgage banking, insurance, brokerage and leasing. U.S. Bancorp’s banking subsidiaries are engaged in the general banking business, principally in domestic markets. The subsidiaries provide a range of products and services to individuals, businesses, institutional organizations, governmental entities and other financial institutions. The Company operates in five segments: Wholesale Banking, Consumer Banking, Wealth Management & Securities Services, Payment Services, and Treasury and Corporate Support. On November 21, 2008, the Company acquired the banking operations of Downey Savings & Loan Association, F.A. and PFF Bank & Trust. In October 2009, the Company announced that U.S. Bank National Association, has acquired the banking subsidiaries of FBOP Corporation of Oak Park, Illinois, from the Federal Deposit Insurance Corporation.

Commercial and consumer lending services are principally offered to customers within the Company’s domestic markets, to domestic customers with foreign operations and within certain national venues. Lending services include credit products, as well as credit card services, financing and import/export trade, asset-backed lending, agricultural finance and other products. Leasing products are offered through bank leasing subsidiaries. Depository services include checking accounts, savings accounts and time certificate contracts. Ancillary services, such as foreign exchange, treasury management and receivable lock-box collection are provided to corporate customers. U.S. Bancorp’s bank and trust subsidiaries provide a range of asset management and fiduciary services for individuals, estates, foundations, business corporations and charitable organizations. U.S. Bancorp’s non-banking subsidiaries primarily offer investment and insurance products to the Company’s customers principally within its markets and mutual fund processing services to a range of mutual funds.

Banking and investment services are provided through a network of 2,791 banking offices principally operating in 24 states in the Midwest and West. The Company operates a network of 4,897 branded ATMs and provides 24-hour, seven day a week telephone customer service. Mortgage banking services are provided through banking offices and loan production offices throughout the Company’s markets. Consumer lending products may be originated through banking offices, indirect correspondents, brokers or other lending sources, and a consumer finance division. The Company also provides Visa corporate and purchasing card services and corporate trust services in the United States. A wholly owned subsidiary, Elavon, Inc. (Elavon), provides merchant processing services directly to merchants and through a network of banking affiliations. Affiliates of Elavon provide similar merchant services in Canada and segments of Europe.

Wholesale Banking

Wholesale Banking offers lending, equipment finance and small-ticket leasing, depository, treasury management, capital markets, foreign exchange, international trade services and other financial services to middle market, corporate, commercial real estate, and public sector clients. During the year ended December 31, 2008, Wholesale Banking contributed $1,017 million of the Company’s net income.

Consumer Banking

Consumer Banking delivers products and services through banking offices, telephone servicing and sales, online services, direct mail and ATM processing. It encompasses community banking, metropolitan banking, in-store banking, small business banking, consumer lending, mortgage banking, consumer finance, workplace banking, student banking and 24-hour banking. During the year ended December 31, 2008, Consumer Banking contributed $1,203 million of the Company’s net income.

Wealth Management & Securities Services

Wealth Management & Securities Services provides trust, private banking, financial advisory, investment management, retail brokerage services, insurance, custody and mutual fund servicing through five businesses: Wealth Management, Corporate Trust, FAF Advisors, Institutional Trust and Custody and Fund Services. Wealth Management & Securities Services contributed $541 million of the Company’s net income in 2008.

Payment Services

Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate and purchasing card services, consumer lines of credit and merchant processing. Its key business units include Corporate Payment Systems, Merchant Payment Services, NOVA Information Systems, Inc., Retail Payment Solutions: Debit and Credit, Specialty Cards and Gift Cards, and Transactions Services: ATM and Debit Processing and Services. Payment Services contributed $1,068 million of the Company’s net income in 2008.

Treasury and Corporate Support

Treasury and Corporate Support include the Company’s investment portfolios, funding, capital management, asset securitization and interest rate risk management. It also includes the net effect of transfer pricing related to average balances and the residual aggregate of those expenses associated with corporate activities that are managed on a consolidated basis.