Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2022

Federal Home Loan Banks [Abstract]

Number of Shares Issued and Outstanding and Carrying Amount of Preferred Stock

The number of shares issued and outstanding and the carrying amount of each outstanding series of the Company’s preferred stock were as follows:

	2022								2021
(Dollars in Millions)	Shares Issued and Outstanding		Liquidation Preference		Discount		Carrying Amount		Shares Issued and Outstanding		Liquidation Preference		Discount		Carrying Amount
Series A		12,510	$	1,251	$	145	$	1,106		12,510	$	1,251	$	145	$	1,106
Series B		40,000		1,000		–		1,000		40,000		1,000		–		1,000
Series J		40,000		1,000		7		993		40,000		1,000		7		993
Series K		23,000		575		10		565		23,000		575		10		565
Series L		20,000		500		14		486		20,000		500		14		486
Series M		30,000		750		21		729		30,000		750		21		729
Series N		60,000		1,500		8		1,492		60,000		1,500		8		1,492
Series O		18,000		450		13		437		–		–		–		–
Total preferred stock(a)		243,510	$	7,026	$	218	$	6,808		225,510	$	6,576	$	205	$	6,371

(a) The par value of all shares issued and outstanding at December 31, 2022 and 2021, was $1.00 per share.

Common Stock Repurchased

The following table summarizes the Company’s common stock repurchased in each of the last three years:

(Dollars and Shares in Millions)	Shares		Value
2022		1	$	69
2021		28		1,556
2020		31		1,661

Reconciliation of Transactions Affecting Accumulated Other Comprehensive Income (Loss) Included in Shareholders' Equity

The reconciliation of the transactions affecting accumulated other comprehensive income (loss) included in shareholders’ equity for the years ended December 31, is as follows:

(Dollars in Millions)	Unrealized Gains (Losses) on Investment Securities Available-For-Sale			Unrealized Gains (Losses) on Investment Securities Transferred From Available-For-Sale to Held-To-Maturity			Unrealized Gains (Losses) on Derivative Hedges			Unrealized Gains (Losses) on Retirement Plans			Foreign Currency Translation			Total
2022
Balance at beginning of period	$	540		$	(935	)	$	(85	)	$	(1,426	)	$	(37	)	$	(1,943	)
Changes in unrealized gains (losses)		(13,656	)		–			(75	)		526			–			(13,205	)
Transfer of securities from available-for-sale to held-to-maturity		4,413			(4,413	)		–			–			–			–
Foreign currency translation adjustment(a)		–			–			–			–			(10	)		(10	)
Reclassification to earnings of realized (gains) losses		(20	)		400			36			128			–			544
Applicable income taxes		2,345			1,015			10			(167	)		4			3,207
Balance at end of period	$	(6,378	)	$	(3,933	)	$	(114	)	$	(939	)	$	(43	)	$	(11,407	)
2021
Balance at beginning of period	$	2,417		$	–		$	(189	)	$	(1,842	)	$	(64	)	$	322
Changes in unrealized gains and losses		(3,698	)		–			125			400			–			(3,173	)
Transfer of securities from available-for-sale to held-to-maturity		1,289			(1,289	)		–			–			–			–
Foreign currency translation adjustment(a)		–			–			–			–			35			35
Reclassification to earnings of realized gains and losses		(103	)		36			14			157			–			104
Applicable income taxes		635			318			(35	)		(141	)		(8	)		769
Balance at end of period	$	540		$	(935	)	$	(85	)	$	(1,426	)	$	(37	)	$	(1,943	)
2020
Balance at beginning of period	$	379		$	–		$	(51	)	$	(1,636	)	$	(65	)	$	(1,373	)
Changes in unrealized gains and losses		2,905			–			(194	)		(401	)		–			2,310
Foreign currency translation adjustment(a)		–			–			–			–			2			2
Reclassification to earnings of realized gains and losses		(177	)		–			10			125			–			(42	)
Applicable income taxes		(690	)		–			46			70			(1	)		(575	)
Balance at end of period	$	2,417		$	–		$	(189	)	$	(1,842	)	$	(64	)	$	322

(a) Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges.

Impact to Net Income for Items Reclassified out of Accumulated Other Comprehensive Income and into Earnings

Additional detail about the impact to net income for items reclassified out of accumulated other comprehensive income (loss) and into earnings for the years ended December 31, is as follows:

	Impact to Net Income									Affected Line Item in the Consolidated Statement of Income
(Dollars in Millions)	2022			2021			2020
Unrealized gains (losses) on investment securities available-for-sale
Realized gains (losses) on sale of investment securities	$	20		$	103		$	177		Securities gains (losses), net
		(5	)		(26	)		(45	)	Applicable income taxes
		15			77			132		Net-of-tax
Unrealized gains (losses) on investment securities transferred from available-for-sale to held-to-maturity
Amortization of unrealized gains (losses)		(400	)		(36	)		–		Interest income
		119			9			–		Applicable income taxes
		(281	)		(27	)		–		Net-of-tax
Unrealized gains (losses) on derivative hedges
Realized gains (losses) on derivative hedges		(36	)		(14	)		(10	)	Interest expense
		9			4			3		Applicable income taxes
		(27	)		(10	)		(7	)	Net-of-tax
Unrealized gains (losses) on retirement plans
Actuarial gains (losses) and prior service cost (credit) amortization		(128	)		(157	)		(125	)	Other noninterest expense
		33			40			32		Applicable income taxes
		(95	)		(117	)		(93	)	Net-of-tax
Total impact to net income	$	(388	)	$	(77	)	$	32

Components of regulatory capital and summary of regulatory capital requirements and ratios

The following table provides a summary of the regulatory capital requirements in effect, along with the actual components and ratios for the Company and its bank subsidiaries, at December 31, 2022 and 2021:

	U.S. Bancorp						U.S. Bank National Association						MUFG Union Bank National Association
(Dollars in Millions)	2022			2021			2022			2021			2022
Basel III standardized approach:
Common equity tier 1 capital	$	41,560		$	41,701		$	46,681		$	45,000		$	10,888
Tier 1 capital		48,813			48,516			47,127			45,444			10,888
Total risk-based capital		59,015			56,250			56,736			53,125			11,565
Risk-weighted assets		496,500			418,571			436,764			412,979			58,641
Common equity tier 1 capital as a percent of risk-weighted assets		8.4	%		10.0	%		10.7	%		10.9	%		18.6	%
Tier 1 capital as a percent of risk-weighted assets		9.8			11.6			10.8			11.0			18.6
Total risk-based capital as a percent of risk-weighted assets		11.9			13.4			13.0			12.9			19.7
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio)		7.9			8.6			8.1			8.2			10.9
Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure (total leverage exposure ratio)		6.4			6.9			6.5			6.6			10.1

	Minimum(a)			Well- Capitalized
Bank Regulatory Capital Requirements
Common equity tier 1 capital as a percent of risk-weighted assets		7.0	%		6.5	%
Tier 1 capital as a percent of risk-weighted assets		8.5			8.0
Total risk-based capital as a percent of risk-weighted assets		10.5			10.0
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio)		4.0			5.0
Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure (total leverage exposure ratio)		3.0			3.0	(b)

(a) The minimum common equity tier 1 capital, tier 1 capital and total risk-based capital ratio requirements reflect a stress capital buffer requirement of 2.5 percent. Banks and financial services holding companies must maintain minimum capital levels, including a stress capital buffer requirement, to avoid limitations on capital distributions and certain discretionary compensation payments.

(b) A minimum well-capitalized threshold does not apply to U.S. Bancorp for this ratio as it is not formally defined under applicable banking regulations for bank holding companies.