Exhibit 99.1

		News Release
		Contacts:
		Steve Dale		Judith T. Murphy
		Media		Investors/Analysts
		(612) 303-0784		(612) 303-0783

U.S. BANCORP REPORTS NET INCOME
FOR THE THIRD QUARTER OF 2009

Achieves Record Total Net Revenue of $4.3 Billion

     MINNEAPOLIS, October 21, 2009 — U.S. Bancorp (NYSE: USB) today reported net income of $603 million for the third quarter of 2009, or $.30 per diluted common share. Earnings for the third quarter were driven by record total net revenue of $4.3 billion, the result of strong year-over-year growth in both net interest income and fee revenue. The Company’s results were impacted by three significant items, including $415 million of provision for credit losses in excess of net charge-offs, $76 million of net securities losses and a $39 million gain related to the Company’s investment in Visa Inc (NYSE:V). These significant items, in total, reduced diluted earnings per common share by approximately $.19 in the third quarter of 2009. Highlights for the third quarter of 2009 included:

•

Average loan growth of 9.3 percent (2.6 percent excluding acquisitions) over the third quarter of 2008, driven by average retail loan growth of 9.3 percent, led by credit card balances, home equity lines and student loans. New lending activity during the third quarter included:

	•		$8.4 billion of new commercial and commercial real estate commitments
	•		$17.6 billion of commercial and commercial real estate commitment renewals
	•		$1.8 billion of lines related to new credit card accounts (excluding portfolio purchases)
	•		$4.3 billion of other retail originations

•

Strong average deposit growth of 24.6 percent (16.1 percent excluding acquisitions) over the third quarter of 2008, including:

	•		Average noninterest-bearing deposits growth of 30.6 percent
	•		Average total savings deposits growth of 33.5 percent

•

Strong growth in total net revenue of 25.8 percent over the third quarter of 2008 (14.1 percent excluding net securities losses)

U.S. Bancorp Reports Third Quarter 2009 Results
October 21, 2009
Page 2

	•		Net interest income growth of 9.7 percent over the third quarter of 2008, driven by an 8.9 percent increase in average earning assets and an increase in core deposit funding
	•		Net interest margin percentage of 3.67 percent for the third quarter of 2009, compared with 3.65 percent in the third quarter of 2008 (and 3.60 percent in the second quarter of 2009)
	•		Strong year-over-year growth in noninterest income (19.0 percent, excluding net securities losses), driven by:

	•		A $215 million increase in mortgage banking revenue due to robust mortgage loan production volume of $14.8 billion and loan applications totaling $15.5 billion
	•		An 18.9 percent increase in commercial products revenue
	•		Higher treasury management fees (10.2 percent) and ATM processing services fees (9.6 percent)
	•		Lower retail lease residual losses

•

Positive core operating leverage; industry leading efficiency ratio of 47.5 percent in the third quarter of 2009

•

Credit costs trended higher, but the rate of increase moderated; the allowance for credit losses increased:

	•		Provision for credit losses exceeded net charge-offs by $415 million, or approximately 40 percent of net charge-offs for the quarter, resulting in an increase to the allowance for credit losses
	•		Net charge-offs and nonperforming assets increased, but the rate of growth moderated to 12.1 percent and 9.4 percent, respectively, on a linked quarter basis
	•		Allowance to period-end loans increased to 2.72 percent at September 30, 2009, compared with 2.51 percent at June 30, 2009
	•		Allowance to nonperforming assets was 114 percent at September 30, 2009, and at June 30, 2009

•

Strong capital ratios at September 30, 2009:

	•		Tier 1 capital ratio of 9.5 percent
	•		Total risk-based capital ratio of 13.0 percent
	•		Tier 1 common equity ratio of 6.8 percent

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U.S. Bancorp Reports Third Quarter 2009 Results
October 21, 2009
Page 3

EARNINGS SUMMARY		Table 1

														Percent				Percent
														Change				Change
		3Q				2Q				3Q				3Q09 vs				3Q09 vs				YTD				YTD				Percent
($ in millions, except per-share data)		2009				2009				2008				2Q09				3Q08				2009				2008				Change
Net income attributable to U.S. Bancorp		$	603			$	471			$	576				28.0				4.7			$	1,603			$	2,616				(38.7	)
Diluted earnings per common share			.30				.12				.32			nm					(6.3	)			.66				1.46				(54.8	)
Return on average assets (%)			.90				.71				.94												.81				1.45
Return on average common equity (%)			10.0				4.2				10.8												7.7				16.6
Net interest margin (%)			3.67				3.60				3.65												3.62				3.60
Efficiency ratio (%)			47.5				51.0				47.8												48.1				45.9
Tangible efficiency ratio (%) (a)			45.3				48.7				45.5												45.9				43.7
Dividends declared per common share		$	.050			$	.050			$	.425				—				(88.2	)		$	.150			$	1.275				(88.2	)
Book value per common share (period-end)			12.38				11.86				11.50				4.4				7.7

     U.S. Bancorp reported net income of $603 million for the third quarter of 2009, higher than the $576 million for the third quarter of 2008 and $471 million for the second quarter of 2009. Diluted earnings per common share of $.30 in the third quarter of 2009 were $.02 lower than the third quarter of 2008, but $.18 higher on a linked quarter basis. Return on average assets and return on average common equity were .90 percent and 10.0 percent, respectively, for the third quarter of 2009, compared with .94 percent and 10.8 percent, respectively, for the third quarter of 2008. During the third quarter of 2009, the Company strengthened its allowance for credit losses by recording $415 million of provision for credit losses in excess of net charge-offs in light of continued credit deterioration arising from the current economic environment. Other significant items in the third quarter of 2009 included $76 million of net securities losses and a $39 million gain related to the Company’s investment in Visa Inc. These significant items, in total, reduced third quarter of 2009 diluted earnings per common share by approximately $.19. In the third quarter of 2008 significant items, which included provision for credit losses in excess of net charge-offs of $250 million, net securities losses of $411 million and other market valuation losses, reduced diluted earnings per common share by approximately $.28. Significant items in the second quarter of 2009 included provision for credit losses in excess of net charge-offs of $466 million, a $123 million accrual for an FDIC special assessment, $19 million of net securities losses and $154 million of accelerated amortization of the discount associated with TARP preferred stock redeemed on June 17, 2009 (“deemed dividend”). In total, these significant items reduced second quarter of 2009 diluted earnings per common share by approximately $.34.

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U.S. Bancorp Reports Third Quarter 2009 Results
October 21, 2009
Page 4

     U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “The Company’s third quarter earnings, once again, demonstrated the strength and momentum of our diverse business model and the quality of our franchise. Third quarter earnings benefited from record total net revenue of $4.3 billion, controlled expenses and manageable credit costs. Both net interest income and noninterest income increased over the same quarter of 2008 and the prior quarter, as the Company continued to experience a “flight to quality” in its traditional balance sheet businesses, evidenced by the quarter’s significant growth in core deposits, as well as positive results from its fee-based business lines and recent growth initiatives.

     “Once again, credit costs had a significant impact on earnings this quarter. Total net charge-offs and nonperforming assets were higher than the previous quarter but, as expected, the rate of increase on a linked quarter basis moderated. Net charge-offs increased by 12.1 percent and nonperforming assets rose by 9.4 percent between the second and third quarters of this year, compared with increases of 17.9 percent and 17.8 percent, respectively, between the first and second quarters of 2009. The Company strengthened its allowance for credit losses by providing an incremental $415 million of provision for credit losses. This incremental provision represented approximately 40 percent of the quarter’s net charge-offs, compared with an incremental provision equal to approximately 50 percent of net charge-offs in the second quarter. These actions to strengthen the balance sheet resulted in an allowance for credit losses as a percent of period end loans at September 30, 2009, of 2.72 percent versus a ratio of 2.51 percent at June 30, 2009.

     “The Company’s capital position remains solid with a Tier 1 capital ratio of 9.5 percent and a total risk-based capital ratio of 13.0 percent. Our capital ratios continue to be considerably above the well-capitalized level as defined by the regulators following our repayment of the preferred stock issued under the U.S. Treasury’s Capital Purchase Program in the second quarter of 2009. Early in the third quarter, our Company repurchased the 10-year warrant issued to the U.S. Treasury, effectively concluding our participation in TARP. The cost of repurchasing the warrant was $139 million and was recorded as a reduction to shareholders’ equity. We now move forward with the capacity to continue to invest, unencumbered, in our franchise and fee-based businesses, as we remain profitable during this difficult business cycle, generating capital for growth opportunities and our shareholders.

     “We continued to invest this quarter in our product and service offerings, as well as our branch distribution network. The Company also announced a number of diverse and strategically important acquisitions this quarter, including purchases of several credit card and merchant portfolios, a mutual fund

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U.S. Bancorp Reports Third Quarter 2009 Results
October 21, 2009
Page 5

administration and accounting servicing business, a bond trustee business and a banking operation in Nevada. Additionally, we announced the creation of Syncada, a joint venture with Visa Inc., and several new merchant alliances both in the United States and in Europe. These investments demonstrate our Company’s continuing ability and desire to strengthen and expand our businesses by capitalizing on opportunities that present themselves during this downturn, positioning us to capture incremental growth as the domestic and global economies recover.

     “We are operating in a challenging and uncertain economic environment, but our vision into the future is clearer today than it was just three months ago. We are seeing signs of stabilization and even some improvement in the economy. While unemployment has not peaked, the rate of increase has moderated. The housing sector is weak, but the pressure on housing prices has lessened. Our commercial customers are not yet increasing the usage of their lines of credit for new investments or expansion, but they are efficiently managing their businesses through the cycle. Credit costs remain high, but the rate of deterioration has slowed. These are all indications of progress in this otherwise difficult environment.

     “Our third quarter results reaffirmed that our fundamental businesses remain strong and that our unique, independent position has and will differentiate U.S. Bancorp from its competitors. We are focused on maintaining our core operational and financial strength, while investing for growth and remaining poised to capitalize on the recovery. We expect to continue to be among the best performers in the industry, and our dedicated and engaged employees remain committed to serving our customers, supporting our communities, and assisting the government in their efforts to stimulate and strengthen the economy, while creating long-term value for our shareholders.”

     The Company’s net income for the third quarter of 2009 was higher than the same period of 2008 and prior quarter by $27 million (4.7 percent) and $132 million (28.0 percent), respectively. The increase in net income year-over-year was principally the result of an increase in total net revenue and the benefit of a reduction in the effective tax rate, partially offset by increases in noninterest expense and the provision for credit losses. Net income was higher than the prior quarter due to favorable variances in total net revenue and noninterest expense, partially offset by an increase in the provision for credit losses. Diluted earnings per common share declined slightly ($.02) from a year ago, reflecting the increase in average common shares outstanding that resulted from the Company’s common stock offering in the second quarter of 2009.

     Total net revenue on a taxable-equivalent basis for the third quarter of 2009 was $4,250 million; $871 million (25.8 percent) higher than the third quarter of 2008, reflecting a 9.7 percent increase in net interest

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U.S. Bancorp Reports Third Quarter 2009 Results
October 21, 2009
Page 6

income and a 48.2 percent increase in noninterest income. The increase in net interest income year-over-year was largely the result of growth in average earning assets and an increase in core deposit funding, while noninterest income increased year-over-year, principally due to strong growth in mortgage banking revenue, a significant decrease in net securities losses, and lower residual lease valuation losses relative to the third quarter of 2008. Total net revenue was $91 million (2.2 percent) higher than the previous quarter. Net interest income was 2.5 percent higher than the second quarter of 2009 due to lower funding rates, while noninterest income, which increased by 1.8 percent over the prior quarter, benefited from higher payments-related income, growth in commercial products revenue, the gain related to the Company’s investment in Visa Inc. and lower equity investment valuation losses.

     Total noninterest expense in the third quarter of 2009 was $2,053 million; $240 million (13.2 percent) higher than the third quarter of 2008, but $76 million (3.6 percent) lower than the second quarter of 2009. The increase in total noninterest expense year-over-year was primarily due to higher FDIC deposit insurance expense, marketing and business development expense, principally related to credit card initiatives, and the impact of acquisitions. The decrease in total noninterest expense on a linked quarter basis was due primarily to the FDIC special assessment in the second quarter of 2009, partially offset by higher marketing and business development costs.

     The increase in the Company’s provision for credit losses reflected the adverse impact of current economic conditions compared with a year ago. However, on a linked quarter basis, credit deterioration moderated somewhat. The provision for credit losses for the third quarter of 2009 was $1,456 million, an increase of $61 million over the second quarter of 2009 and $708 million over the third quarter of 2008. The provision for credit losses exceeded net charge-offs by $415 million in the third quarter of 2009, $466 million in the second quarter of 2009, and $250 million in the third quarter of 2008. The increase in the provision for credit losses reflected current economic conditions and the corresponding impact on the commercial, commercial real estate and consumer loan portfolios. It also reflected stress in residential real estate markets. Net charge-offs in the third quarter of 2009 were $1,041 million, compared with $929 million in the second quarter of 2009 and $498 million in the third quarter of 2008. Given current economic conditions and the weakness in home prices and the economy in general, the Company expects net charge-offs will remain elevated for the remainder of 2009.

     Nonperforming assets were $4,392 million at September 30, 2009, compared with $4,016 million at June 30, 2009, and $1,492 million at September 30, 2008. At September 30, 2009, $9.9 billion of the

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U.S. Bancorp Reports Third Quarter 2009 Results
October 21, 2009
Page 7

Company’s assets were covered by loss sharing agreements (“covered assets”) that substantially reduce the risk of credit losses to the Company, including $672 million of nonperforming assets, compared with $682 million of nonperforming covered assets at June 30, 2009. The majority of these covered nonperforming assets were considered credit-impaired at acquisition and were recorded at their estimated fair value at the date of acquisition. The remaining linked quarter and year-over-year increase in nonperforming assets was driven by stress in residential home construction and related industries, and the residential mortgage portfolio, as well as an increase in foreclosed properties, and the impact of the economic slowdown on commercial customers. The ratio of the allowance for credit losses to period-end loans, excluding covered assets, was 2.88 percent at September 30, 2009, compared with 2.66 percent at June 30, 2009, and 1.71 percent at September 30, 2008. The ratio of the allowance for credit losses to period-end loans, including covered assets, was 2.72 percent at September 30, 2009, compared with 2.51 percent at June 30, 2009. The Company anticipates nonperforming assets will continue to increase during the fourth quarter of 2009 as economic conditions affect an increasing number of borrowers in both the commercial and consumer loan categories.

INCOME STATEMENT HIGHLIGHTS		Table 2

														Percent				Percent
														Change				Change
		3Q				2Q				3Q				3Q09 vs				3Q09 vs				YTD				YTD				Percent
(Taxable-equivalent basis, $ in millions, except per-share data)		2009				2009				2008				2Q09				3Q08				2009				2008				Change
Net interest income		$	2,157			$	2,104			$	1,967				2.5				9.7			$	6,356			$	5,705				11.4
Noninterest income			2,093				2,055				1,412				1.8				48.2				5,936				5,348				11.0
Total net revenue			4,250				4,159				3,379				2.2				25.8				12,292				11,053				11.2
Noninterest expense			2,053				2,129				1,813				(3.6	)			13.2				6,053				5,410				11.9
Income before provision and taxes			2,197				2,030				1,566				8.2				40.3				6,239				5,643				10.6
Provision for credit losses			1,456				1,395				748				4.4				94.7				4,169				1,829			nm
Income before taxes			741				635				818				16.7				(9.4	)			2,070				3,814				(45.7	)
Taxable-equivalent adjustment			50				50				34				—				47.1				148				94				57.4
Applicable income taxes			86				100				198				(14.0	)			(56.6	)			287				1,060				(72.9	)
Net income			605				485				586				24.7				3.2				1,635				2,660				(38.5	)
Net income attributable to noncontrolling interests			(2	)			(14	)			(10	)			85.7				80.0				(32	)			(44	)			27.3
Net income attributable to U.S. Bancorp		$	603			$	471			$	576				28.0				4.7			$	1,603			$	2,616				(38.7	)
Net income applicable to U.S. Bancorp common shareholders		$	583			$	221			$	557			nm					4.7			$	1,223			$	2,560				(52.2	)
Diluted earnings per common share		$	.30			$	.12			$	.32			nm					(6.3	)		$	.66			$	1.46				(54.8	)

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U.S. Bancorp Reports Third Quarter 2009 Results
October 21, 2009
Page 8

Net Interest Income

     Net interest income on a taxable-equivalent basis in the third quarter of 2009 was $2,157 million, compared with $1,967 million in the third quarter of 2008, an increase of $190 million (9.7 percent). The increase was primarily the result of growth in average earning assets, which were higher by $19.1 billion (8.9 percent) than the third quarter of 2008, driven by an increase of $15.4 billion (9.3 percent) in average loans and $3.9 billion in loans held for sale. Net interest income grew 2.5 percent on a linked quarter basis, primarily due to favorable funding rates. During the third quarter of 2009, the net interest margin was 3.67 percent compared with 3.65 percent in the third quarter of 2008 and 3.60 percent in the second quarter of 2009. Given the current interest rate environment, the net interest margin is expected to remain relatively stable with a bias toward modest improvement in the fourth quarter.

NET INTEREST INCOME		Table 3

														Change				Change
		3Q				2Q				3Q				3Q09 vs				3Q09 vs				YTD				YTD
(Taxable-equivalent basis; $ in millions)		2009				2009				2008				2Q09				3Q08				2009				2008				Change
Components of net interest income
Income on earning assets		$	2,909			$	2,893			$	3,110			$	16			$	(201	)		$	8,722			$	9,435			$	(713	)
Expense on interest-bearing liabilities			752				789				1,143				(37	)			(391	)			2,366				3,730				(1,364	)
Net interest income		$	2,157			$	2,104			$	1,967			$	53			$	190			$	6,356			$	5,705			$	651
Average yields and rates paid
Earning assets yield			4.94	%			4.95	%			5.77	%			(.01	)%			(.83	)%			4.97	%			5.96	%			(.99	)%
Rate paid on interest-bearing liabilities			1.54				1.65				2.45				(.11	)			(.91	)			1.63				2.72				(1.09	)
Gross interest margin			3.40	%			3.30	%			3.32	%			.10	%			.08	%			3.34	%			3.24	%			.10	%
Net interest margin			3.67	%			3.60	%			3.65	%			.07	%			.02	%			3.62	%			3.60	%			.02	%
Average balances
Investment securities		$	42,558			$	42,189			$	42,548			$	369			$	10			$	42,357			$	43,144			$	(787	)
Loans			181,968				183,878				166,560				(1,910	)			15,408				183,837				161,639				22,198
Earning assets			234,111				234,265				214,973				(154	)			19,138				234,559				211,372				23,187
Interest-bearing liabilities			194,202				192,238				185,494				1,964				8,708				193,649				182,943				10,706
Net free funds (a)			39,909				42,027				29,479				(2,118	)			10,430				40,910				28,429				12,481

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U.S. Bancorp Reports Third Quarter 2009 Results
October 21, 2009
Page 9

AVERAGE LOANS		Table 4

														Percent				Percent
														Change				Change
		3Q				2Q				3Q				3Q09 vs				3Q09 vs				YTD				YTD				Percent
($ in millions)		2009				2009				2008				2Q09				3Q08				2009				2008				Change
Commercial		$	44,655			$	47,362			$	48,137				(5.7	)			(7.2	)		$	47,109			$	47,089				—
Lease financing			6,567				6,697				6,436				(1.9	)			2.0				6,678				6,336				5.4
Total commercial			51,222				54,059				54,573				(5.2	)			(6.1	)			53,787				53,425				.7
Commercial mortgages			24,296				23,875				22,302				1.8				8.9				23,911				21,281				12.4
Construction and development			9,533				9,852				9,446				(3.2	)			.9				9,742				9,309				4.7
Total commercial real estate			33,829				33,727				31,748				.3				6.6				33,653				30,590				10.0
Residential mortgages			24,405				23,964				23,309				1.8				4.7				24,096				23,198				3.9
Credit card			15,387				14,329				12,217				7.4				25.9				14,444				11,611				24.4
Retail leasing			4,822				5,031				5,200				(4.2	)			(7.3	)			4,989				5,507				(9.4	)
Home equity and second mortgages			19,368				19,314				17,858				.3				8.5				19,298				17,166				12.4
Other retail			22,647				22,753				21,655				(.5	)			4.6				22,795				20,142				13.2
Total retail			62,224				61,427				56,930				1.3				9.3				61,526				54,426				13.0
Total loans, excluding covered assets			171,680				173,177				166,560				(.9	)			3.1				173,062				161,639				7.1
Covered assets			10,288				10,701				—				(3.9	)		nm					10,775				—			nm
Total loans		$	181,968			$	183,878			$	166,560				(1.0	)			9.3			$	183,837			$	161,639				13.7

     Total average loans, excluding covered assets, were $5.1 billion (3.1 percent) higher in the third quarter of 2009 than the third quarter of 2008, primarily driven by growth in retail loan categories. Average total retail loans grew $5.3 billion, total commercial real estate loans grew $2.1 billion, and residential mortgages grew $1.1 billion. This growth was partially offset by a $3.4 billion decline in total commercial loans, principally due to lower utilization of existing commitments and to a reduction in demand for new loans. Retail loan growth, year-over-year, was driven by increases in credit cards, home equity lines and federally-guaranteed student loans. Included in the growth of average credit card loans outstanding were portfolio purchases during the third quarter of approximately $1.3 billion. Total average loans were $1.9 billion (1.0 percent) lower in the third quarter of 2009 than the second quarter of 2009, as increases in credit cards (7.4 percent) and residential mortgages (1.8 percent) were more than offset by a decline in total commercial loans (5.2 percent), primarily due to lower commitment utilization by corporate borrowers and reduced demand for new loans, and lower covered assets (3.9 percent). Total average loans, excluding the third quarter credit card portfolio purchases, were lower by 1.2 percent on a linked quarter basis. Average covered assets related to the November 2008 acquisitions of Downey Savings & Loan Association, F.A. and PFF Bank and Trust

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U.S. Bancorp Reports Third Quarter 2009 Results
October 21, 2009
Page 10

(“Downey” and “PFF”, respectively) were $10.3 billion in the third quarter of 2009 compared with $10.7 billion in the second quarter of 2009.

     Average investment securities in the third quarter of 2009 were $42.6 billion, essentially unchanged year-over-year and slightly higher (.9 percent) than the second quarter of 2009. The composition of the Company’s investment portfolio remained principally the same.

AVERAGE DEPOSITS		Table 5

														Percent				Percent
														Change				Change
		3Q				2Q				3Q				3Q09 vs				3Q09 vs				YTD				YTD				Percent
($ in millions)		2009				2009				2008				2Q09				3Q08				2009				2008				Change
Noninterest-bearing deposits		$	36,982			$	37,388			$	28,322				(1.1	)			30.6			$	36,800			$	27,766				32.5
Interest-bearing savings deposits
Interest checking			38,218				37,393				32,304				2.2				18.3				35,906				31,697				13.3
Money market savings			33,387				27,250				26,167				22.5				27.6				29,541				26,062				13.3
Savings accounts			13,824				12,278				5,531				12.6			nm					12,160				5,348			nm
Total of savings deposits			85,429				76,921				64,002				11.1				33.5				77,607				63,107				23.0
Time certificates of deposit less than $100,000			16,985				17,968				12,669				(5.5	)			34.1				17,691				12,969				36.4
Time deposits greater than $100,000			26,966				30,943				28,546				(12.9	)			(5.5	)			31,293				29,560				5.9
Total interest-bearing deposits			129,380				125,832				105,217				2.8				23.0				126,591				105,636				19.8
Total deposits		$	166,362			$	163,220			$	133,539				1.9				24.6			$	163,391			$	133,402				22.5

     Average total deposits for the third quarter of 2009 were higher by $32.8 billion (24.6 percent) than the third quarter of 2008. Excluding deposits from the November 2008 acquisitions of Downey and PFF and the April 2009 acquisition of the First Bank of Idaho, average total deposits increased $21.5 billion (16.1 percent) over the third quarter of 2008. Noninterest-bearing deposits increased $8.7 billion (30.6 percent) year-over-year, primarily due to growth in the Consumer and Wholesale Banking business lines. Average total savings deposits were higher year-over-year by $21.4 billion (33.5 percent) with increases in all categories, the result of growth in Consumer Banking, government, broker-dealer and institutional trust customers and the impact of acquisitions. Contributing to the increase in savings accounts was strong participation in a new savings product introduced across the franchise by Consumer Banking late in the third quarter of 2008. Average time certificates of deposit less than $100,000 were higher year-over-year by $4.3 billion (34.1 percent) primarily due to acquisitions, while average time deposits greater than $100,000 decreased (5.5 percent), reflecting a decrease in overall wholesale funding requirements.

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U.S. Bancorp Reports Third Quarter 2009 Results
October 21, 2009
Page 11

     Average total deposits increased $3.1 billion (1.9 percent) over the second quarter of 2009, primarily due to strong growth in total average savings deposits, which increased by $8.5 billion (11.1 percent) quarter-over-quarter. This growth was the result of increases in Consumer Banking, corporate and institutional trust, broker-dealer and government balances. Average noninterest-bearing deposits for the third quarter of 2009 were $406 million (1.1 percent) lower than the prior quarter primarily due to seasonal decreases in the Consumer and Wholesale business lines. Average time certificates of deposit less than $100,000 decreased $983 million (5.5 percent) from the prior quarter, while average time deposits greater than $100,000 decreased by $4.0 billion (12.9 percent) from the second quarter of 2009, reflecting a reduction in wholesale funding requirements.

NONINTEREST INCOME		Table 6

														Percent				Percent
														Change				Change
		3Q				2Q				3Q				3Q09 vs				3Q09 vs				YTD				YTD				Percent
($ in millions)		2009				2009				2008				2Q09				3Q08				2009				2008				Change
Credit and debit card revenue		$	267			$	259			$	269				3.1				(.7	)		$	782			$	783				(.1	)
Corporate payment products revenue			181				168				179				7.7				1.1				503				517				(2.7	)
Merchant processing services			300				278				300				7.9				—				836				880				(5.0	)
ATM processing services			103				104				94				(1.0	)			9.6				309				271				14.0
Trust and investment management fees			293				304				329				(3.6	)			(10.9	)			891				1,014				(12.1	)
Deposit service charges			256				250				286				2.4				(10.5	)			732				821				(10.8	)
Treasury management fees			141				142				128				(.7	)			10.2				420				389				8.0
Commercial products revenue			157				144				132				9.0				18.9				430				361				19.1
Mortgage banking revenue			276				308				61				(10.4	)		nm					817				247			nm
Investment products fees and commissions			27				27				37				—				(27.0	)			82				110				(25.5	)
Securities gains (losses), net			(76	)			(19	)			(411	)		nm					81.5				(293	)			(725	)			59.6
Other			168				90				8				86.7			nm					427				680				(37.2	)
Total noninterest income		$	2,093			$	2,055			$	1,412				1.8				48.2			$	5,936			$	5,348				11.0

Noninterest Income

     Third quarter noninterest income was $2,093 million; $681 million (48.2 percent) higher than the third quarter of 2008 and $38 million (1.8 percent) higher than the second quarter of 2009. Noninterest income improved over the third quarter of 2008 primarily due to a $215 million increase in mortgage banking revenue, as the lower rate environment drove strong mortgage loan production and related production gains, and a $335 million reduction in net securities losses from a year ago. Noninterest income also benefited from higher ATM processing services fees of $9 million (9.6 percent) related to growth in transaction

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U.S. Bancorp Reports Third Quarter 2009 Results
October 21, 2009
Page 12

volumes and business expansion, an increase in treasury management fees of $13 million (10.2 percent) resulting from growth in transaction volumes, and an increase in commercial products revenue of $25 million (18.9 percent) due to higher letters of credit, capital markets and other commercial loan fees. In addition, other income increased $160 million, principally due to a significant reduction in residual lease valuation losses, the impact of lower market-related valuation losses relative to the third quarter of 2008, and a gain related to the Company’s investment in Visa Inc., partially offset by higher valuation losses on equity investments. Trust and investment management fees declined $36 million (10.9 percent) and investment products fees and commissions declined $10 million (27.0 percent), reflecting adverse equity market conditions. Deposit service charges decreased $30 million (10.5 percent), primarily due to a decrease in the number of overdraft incidences, which more than offset account growth.

     Noninterest income was higher by $38 million (1.8 percent) in the third quarter of 2009 than the second quarter of 2009. Other income increased $78 million due in part to lower residual lease valuation losses, the gain related to the Company’s investment in Visa Inc. and lower equity investment valuation losses. Payments-related fees increased $43 million (6.1 percent) primarily due to seasonally higher volumes, while deposit service charges rose by $6 million (2.4 percent) quarter-over-quarter as a result of account growth. Higher capital markets revenue led to a linked quarter increase of $13 million (9.0 percent) in commercial products revenue. Partially offsetting these positive variances was a decline in trust and investment management fees of $11 million (3.6 percent), largely due to the impact of market conditions on investment management fees, and mortgage banking revenue which decreased by $32 million (10.4 percent) as a result of lower production revenue compared with the record production levels achieved in the second quarter of 2009. The unfavorable variance in net securities losses of $57 million was due to higher gains on sale of securities recognized in the second quarter of 2009.

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U.S. Bancorp Reports Third Quarter 2009 Results
October 21, 2009
Page 13

NONINTEREST EXPENSE				Table 7

															Percent				Percent
															Change				Change
			3Q				2Q				3Q				3Q09 vs				3Q09 vs				YTD				YTD				Percent
($ in millions)			2009				2009				2008				2Q09				3Q08				2009				2008				Change
Compensation		$	769			$	764			$	763				.7				.8			$	2,319			$	2,269				2.2
Employee benefits			134				140				125				(4.3	)			7.2				429				391				9.7
Net occupancy and equipment			203				208				199				(2.4	)			2.0				622				579				7.4
Professional services			63				59				61				6.8				3.3				174				167				4.2
Marketing and business development			137				80				75				71.3				82.7				273				220				24.1
Technology and communications			175				157				153				11.5				14.4				487				442				10.2
Postage, printing and supplies			72				72				73				—				(1.4	)			218				217				.5
Other intangibles			94				95				88				(1.1	)			6.8				280				262				6.9
Other			406				554				276				(26.7	)			47.1				1,251				863				45.0
Total noninterest expense		$	2,053			$	2,129			$	1,813				(3.6	)			13.2			$	6,053			$	5,410				11.9

Noninterest Expense

     Noninterest expense in the third quarter of 2009 totaled $2,053 million, an increase of $240 million (13.2 percent) over the third quarter of 2008, but a decrease of $76 million (3.6 percent) from the second quarter of 2009. The increase in noninterest expense over a year ago was principally due to the impact of higher FDIC deposit insurance expense, marketing and business development expense and bank acquisitions. Compensation expense was essentially flat compared with a year ago, while employee benefits expense increased $9 million (7.2 percent), reflecting higher pension costs associated with previous period declines in the value of pension assets. Marketing and business development expense was higher by $62 million (82.7 percent), principally due to costs related to the introduction of new credit card products, while technology and communications expense increased $22 million (14.4 percent), primarily due to a new payments-related initiative. Other intangibles expense increased 6.8 percent due to acquisitions, and other expense increased $130 million (47.1 percent) due to higher FDIC deposit insurance expense and increased costs related to investments in affordable housing and other tax-advantaged projects, growth in mortgage servicing, and costs associated with other real estate owned.

     Noninterest expense decreased $76 million (3.6 percent) in the third quarter of 2009 from the second quarter of 2009. Other expense was $148 million (26.7 percent) lower on a linked quarter basis due to the FDIC special assessment recorded in the prior quarter, as well as decreased costs for acquisition integration and litigation costs. These favorable variances were partially offset by higher costs related to investments in

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U.S. Bancorp Reports Third Quarter 2009 Results
October 21, 2009
Page 14

affordable housing and other tax-advantaged projects, which are offset by a benefit to income taxes. Employee benefits expense declined $6 million (4.3 percent) due to seasonally lower payroll taxes, while net occupancy and equipment expense was $5 million (2.4 percent) lower on a linked quarter basis, primarily due to the completion of acquisition integration activities. Partially offsetting these favorable variances were increases in marketing and business development expense of $57 million (71.3 percent) and technology and communications expense of $18 million (11.5 percent). Marketing and business development expense rose due to the introduction of new credit card products and the timing of other product campaigns. Technology and communications expense increased on a linked quarter basis due to a payments-related initiative.

Provision for Income Taxes

     The provision for income taxes for the third quarter of 2009 resulted in a tax rate on a taxable-equivalent basis of 18.4 percent (effective tax rate of 12.4 percent) compared with 28.4 percent (effective tax rate of 25.3 percent) in the third quarter of 2008 and 23.6 percent (effective tax rate of 17.1 percent) in the second quarter of 2009. The decline in the effective tax rate as compared with the same quarter of 2008 reflects the marginal impact of tax exempt income, investments in affordable housing and other tax advantaged projects combined with lower pretax earnings year-over-year.

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U.S. Bancorp Reports Third Quarter 2009 Results
October 21, 2009
Page 15

ALLOWANCE FOR CREDIT LOSSES				Table 8

		3Q				2Q				1Q				4Q				3Q
($ in millions)		2009				2009				2009				2008				2008
Balance, beginning of period		$	4,571			$	4,105			$	3,639			$	2,898			$	2,648
Net charge-offs
Commercial			200				177				112				108				57
Lease financing			44				55				55				31				22
Total commercial			244				232				167				139				79
Commercial mortgages			30				28				13				14				9
Construction and development			159				93				117				63				56
Total commercial real estate			189				121				130				77				65
Residential mortgages			129				116				91				84				71
Credit card			271				263				212				169				149
Retail leasing			8				10				13				11				9
Home equity and second mortgages			89				83				70				52				48
Other retail			111				102				99				95				77
Total retail			479				458				394				327				283
Total net charge-offs, excluding covered assets			1,041				927				782				627				498
Covered assets			—				2				6				5				—
Total net charge-offs			1,041				929				788				632				498
Provision for credit losses			1,456				1,395				1,318				1,267				748
Acquisitions and other changes			—				—				(64	)			106				—
Balance, end of period		$	4,986			$	4,571			$	4,105			$	3,639			$	2,898
Components
Allowance for loan losses		$	4,825			$	4,377			$	3,947			$	3,514			$	2,767
Liability for unfunded credit commitments			161				194				158				125				131
Total allowance for credit losses		$	4,986			$	4,571			$	4,105			$	3,639			$	2,898
Gross charge-offs		$	1,105			$	992			$	840			$	678			$	544
Gross recoveries		$	64			$	63			$	52			$	46			$	46
Allowance for credit losses as a percentage of
Period-end loans, excluding covered assets			2.88				2.66				2.37				2.09				1.71
Nonperforming loans, excluding covered assets			150				152				169				206				222
Nonperforming assets, excluding covered assets			134				137				152				184				194
Period-end loans			2.72				2.51				2.23				1.96				1.71
Nonperforming loans			125				124				131				151				222
Nonperforming assets			114				114				120				139				194

Credit Quality

     Credit losses and nonperforming assets continued to trend higher, although the rate of increase moderated somewhat during the current quarter, reflecting the recessionary economic environment. The allowance for credit losses was $4,986 million at September 30, 2009, compared with $4,571 million at June 30, 2009, and $2,898 million at September 30, 2008. Total net charge-offs in the third quarter of 2009 were

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U.S. Bancorp Reports Third Quarter 2009 Results
October 21, 2009
Page 16

$1,041 million, compared with $929 million in the second quarter of 2009, and $498 million in the third quarter of 2008. The increase in total net charge-offs compared with a year ago was driven by factors affecting the residential housing markets, including homebuilding and related industries, commercial real estate properties and credit costs associated with credit card and other consumer and commercial loans as the economy weakened. As a result of the stress in these areas, the Company recorded $415 million of provision for credit losses in excess of net charge-offs, increasing the allowance for credit losses during the third quarter of 2009.

     Commercial and commercial real estate loan net charge-offs increased to $433 million in the third quarter of 2009 (2.02 percent of average loans outstanding) compared with $353 million (1.61 percent of average loans outstanding) in the second quarter of 2009 and $144 million (.66 percent of average loans outstanding) in the third quarter of 2008. This increasing trend reflected stress in commercial real estate, residential housing, especially homebuilding and related industry sectors, along with the impact of current economic conditions on commercial loan portfolios.

     Residential mortgage loan net charge-offs were $129 million in the third quarter of 2009 (2.10 percent of average loans outstanding) compared with $116 million (1.94 percent of average loans outstanding) in the second quarter of 2009 and $71 million (1.21 percent of average loans outstanding) in the third quarter of 2008. Total retail loan net charge-offs were $479 million (3.05 percent of average loans outstanding) in the third quarter of 2009 compared with $458 million (2.99 percent of average loans outstanding) in the second quarter of 2009 and $283 million (1.98 percent of average loans outstanding) in the third quarter of 2008. The increased residential mortgage and retail loan credit losses reflected the adverse impact of current economic conditions on consumers, as rising unemployment levels increased losses in prime-based residential portfolios.

     The ratio of the allowance for credit losses to period-end loans was 2.72 percent (2.88 percent excluding covered assets) at September 30, 2009, compared with 2.51 percent (2.66 percent excluding covered assets) at June 30, 2009, and 1.71 percent at September 30, 2008. The ratio of the allowance for credit losses to nonperforming loans was 125 percent (150 percent excluding covered assets) at September 30, 2009, compared with 124 percent (152 percent excluding covered assets) at June 30, 2009, and 222 percent at September 30, 2008.

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U.S. Bancorp Reports Third Quarter 2009 Results
October 21, 2009
Page 17

CREDIT RATIOS				Table 9

		3Q				2Q				1Q				4Q				3Q
(Percent)		2009				2009				2009				2008				2008
Net charge-offs ratios (a)
Commercial			1.78				1.50				.92				.85				.47
Lease financing			2.66				3.29				3.29				1.87				1.36
Total commercial			1.89				1.72				1.21				.97				.58
Commercial mortgages			.49				.47				.22				.24				.16
Construction and development			6.62				3.79				4.82				2.59				2.36
Total commercial real estate			2.22				1.44				1.58				.94				.81
Residential mortgages			2.10				1.94				1.54				1.43				1.21
Credit card (b)			6.99				7.36				6.32				5.18				4.85
Retail leasing			.66				.80				1.03				.86				.69
Home equity and second mortgages			1.82				1.72				1.48				1.11				1.07
Other retail			1.94				1.80				1.75				1.70				1.41
Total retail			3.05				2.99				2.62				2.21				1.98
Total net charge-offs, excluding covered assets			2.41				2.15				1.82				1.45				1.19
Covered assets			—				.07				.21				.38				—
Total net charge-offs			2.27				2.03				1.72				1.42				1.19
Delinquent loan ratios - 90 days or more past due excluding nonperforming loans (c)
Commercial			.17				.16				.19				.13				.11
Commercial real estate			.12				.22				.07				.11				.05
Residential mortgages			2.32				2.11				2.03				1.55				1.34
Retail			1.00				.94				.94				.82				.68
Total loans, excluding covered assets			.78				.72				.68				.56				.46
Covered assets			7.92				7.60				6.76				5.13				—
Total loans			1.16				1.12				1.05				.84				.46
Delinquent loan ratios - 90 days or more past due including nonperforming loans (c)
Commercial			2.19				1.89				1.59				.82				.76
Commercial real estate			5.22				5.05				3.87				3.34				2.25
Residential mortgages			3.86				3.46				3.02				2.44				2.00
Retail			1.28				1.19				1.16				.97				.81
Total loans, excluding covered assets			2.69				2.48				2.08				1.57				1.23
Covered assets			14.74				14.10				13.11				10.74				—
Total loans			3.34				3.15				2.74				2.14				1.23

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U.S. Bancorp Reports Third Quarter 2009 Results
October 21, 2009
Page 18

ASSET QUALITY				Table 10

		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
($ in millions)		2009				2009				2009				2008				2008
Nonperforming loans
Commercial		$	908			$	785			$	651			$	290			$	280
Lease financing			119				123				119				102				85
Total commercial			1,027				908				770				392				365
Commercial mortgages			502				471				392				294				164
Construction and development			1,230				1,156				887				780				545
Total commercial real estate			1,732				1,627				1,279				1,074				709
Residential mortgages			383				324				239				210				155
Retail			174				155				135				92				74
Total nonperforming loans, excluding covered assets			3,316				3,014				2,423				1,768				1,303
Covered assets			672				682				702				643				—
Total nonperforming loans			3,988				3,696				3,125				2,411				1,303
Other real estate			366				293				257				190				164
Other nonperforming assets			38				27				28				23				25
Total nonperforming assets (a)		$	4,392			$	4,016			$	3,410			$	2,624			$	1,492
Accruing loans 90 days or more past due, excluding covered assets		$	1,344			$	1,245			$	1,185			$	967			$	787
Accruing loans 90 days or more past due		$	2,125			$	2,042			$	1,932			$	1,554			$	787
Restructured loans that continue to accrue interest		$	2,254			$	2,107			$	1,901			$	1,509			$	1,180
Nonperforming assets to loans plus ORE, excluding covered assets (%)			2.14				1.94				1.56				1.14				.88
Nonperforming assets to loans plus ORE (%)			2.39				2.20				1.85				1.42				.88