U.S. Bancorp Overview

U.S. Bancorp

U.S. Bancorp (USB), a diverse provider of financial services, offers choices for private banking, retail and commercial banking, and wealth management through its subsidiaries. Its product and service portfolio consists of checking and savings accounts, certificates of deposits, loans for people and businesses, personal and business credit lines, mortgages, insurance, savings and investment products, brokerage and fund services, credit and debit cards, asset and wealth management, and financial planning solutions. Additional services provided by the company include leasing, foreign banking, payment services, private banking, cash management, and online and mobile banking. It operates primarily in the US West and Midwest. The American business U.S. Bancorp was founded in 1863 and is headquartered in Minneapolis, Minnesota. The company has a revenue of $23.7 billion[2021] and an employee strength of 68796 employees.

The company’s subsidiaries mostly operate in the domestic markets when conducting ordinary banking operations. Subsidiaries of the corporation offer a wide range of goods and services to private citizens, commercial enterprises, institutional organizations, governmental bodies, and other financial institutions. Commercial and consumer loan services are primarily provided by the company to clients with activities in its domestic markets, domestic clients with operations abroad, and major national clients with a concentration on particular targeted industries. Commercial and consumer loan services are primarily provided by U.S Bancorp to clients with activities in its domestic markets, domestic clients with operations abroad, and major national clients with a concentration on particular targeted industries. Traditional credit products, credit card services, leasing, financing, import and export commerce, asset-backed lending, agricultural finance, and other services are all included in its lending services. Checking accounts, savings accounts, and time certificate contracts are all part of the company’s depositors offerings. Corporate clients can make use of ancillary services including foreign currency, treasury management, and receivable lock-box collection. A broad range of asset management  services are offered by the company’s bank and trust divisions to individuals, estates, foundations, corporations, business enterprises, and nonprofit organizations.

History

The 1990s saw the formation of the current U.S. Bank through the acquisition of numerous significant regional banks in the West and Midwest. These banks were developed as a result of the years-long mergers of numerous smaller banks. Today’s U.S. Bancorp was formed as a result of mergers and acquisitions with more than 50 institutions, big and small, just since 1988.

When the United States National Bank of Oregon was founded in Portland, Oregon, in 1891, it retained its original name of United States National Bank of Portland. It combined with Portland’s Ainsworth National Bank in 1902, but retained the name U.S. National Bank. The decision turned out to be fortuitous, as a 1913 federal legislation barred other banks from using “United States” in their names from that point forward. One of the first banks to establish a bank holding company, known as U.S. Bancorp, was U.S. National.

When First National Bank of Minneapolis was established in 1864, that year marked the beginning of the franchise’s core concept. A number of smaller Upper Midwest banks and this bank merged in 1929 to form the First Bank Stock Corporation, which in 1968 changed its name to First Bank System.

When Farmers and Millers Bank in Milwaukee opened its doors in1853, it expanded into the First National Bank of Milwaukee before becoming First Wisconsin and finally Firstar in the eastern portion of the franchise. With the Civil War cannons booming just across the Ohio River in Cincinnati, First National Bank of Cincinnati began operations in 1863 under National Charter#24. However, it endured for many more years and eventually expanded into Star Bank.

These banks were successful as stand-alone businesses. Each partook part in in-market mergers and acquisitions as opportunities arose during the first half of the 20th century, as well as larger expansions during the 1980s and 1990s, such as the 1993 deal that brought Colorado National Bank in Denver into the First Bank System and West One Bancorp of Boise, Idaho, into the original U.S Bancorp in 1995. In 1997, U.S. Bancorp and First Bank System amalgamated. Even though First Bank System was the only remaining business and its corporate offices remained in Minneapolis, the amalgamated banks retained the U.S. Bancorp name.

Firstar and Star Bank amalgamated in1999, and five months later, Firstar purchased Mercantile. The acquisition of U.S. Bancorp by Firstar, which was completed on February27,2001, resulted in the creation of the current business. The company that survived, Firstar, rebranded as U.S. Bancorp and shifted its corporate headquarters to Minneapolis. The first name changes following the Firstar/U.S. Bancorp merger occurred on December13,2001, when two Firstar business lines adopted the U.S. Bancorp moniker.

On August 10, 2004, the company revealed it had raised its prime lending rate to 4.50 percent from 4.25 percent at all U.S. Bank locations.

The Emergency Economic Stabilization Act gave the business $6,599,000,000 on November14, 2008 in the form of preferred stock and accompanying warrants. On November21, 2008 Pomona First Fed Bk & Tr(PFF) was acquired from PFF Bancorp Inc,CA, and Downey Savings & Loan Assn FA was acquired from Downey Financial Corp. As of year-end2008, Bank had $266 billion in total assets. The sixth-largest commercial bank in the US was US Bank. The corporation completed the purchase of a warrant owned by the U.S. Treasury Division. on July15,2009, and on June17,2009, it redeemed the $6.6 billion of preferred shares. The company’s involvement in the Capital Purchase Program was thus virtually over. It was among the first banks to repay the Troubled Asset Relief Program (TARP) funds.

US Bancorp announced four different purchases in October 2009:

• The acquisition of Fiduciary Management, Inc.’s accounting and mutual fund administration division was announced by US Bancorp on October5, 2009.
• In October 7^th 2009, the U.S. Bank, a division of First Citizens BancShares Inc., agreed to purchase the bond trustee division of First Citizens Bank.
• On October14,2009, the U.S. Bank and BB&T Corp. reached an agreement for the purchase of their Nevada banking business.
• 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 were among the nine subsidiary banks of FBOP Corporation that US Bancorp successfully acquired from the FDIC on October20, 2009. (CA). (The company later sold the three Texas-based banks to Houston-based Prosperity Bancshares in the year 2010).

On January 28,2011, First Community Bank of New Mexico’s assets and deposits were bought by US Bancorp. That marked the company’s entry point into Mexico which was the 25^th state the company was operated.

On January 27^th,2012, US Bancorp bought the assets and deposits of the defunct BankEast in Knoxville, Tennessee, which had been shut down by state authorities. The next Monday, the 10 locations of the bank adopted the US Bank name.

The company revealed in March 2013 that it was buying Deutsche Bank’s $57 billion municipal bond trustee business.

13 Charter One branches were closed because of their close proximity to existing US Bank locations when the company announced in January 2014 that it would be purchasing 94 branch offices of Charter One Bank in Chicago from RBS Citizens Financial Group for $315 million. The acquisition was completed in June 2014.

Andrew Cecere, the chief financial officer, was elevated to chief operating officer in January2015; a year later, Cecere was granted the additional title of president.

U.S. Bancorp announced in January 2017 that president and COO Andrew Cecere would succeed chairman and CEO Richard Davis as CEO in April2017. Davis would continue to serve as chairman. In April2018, Cecere took over as chairman, president, and CEO after Davis announced his formal retirement from the company.

The bank was accused by the Department of Justice of failing to put policies in place to stop criminal acts, including one instance of aiding and abetting, in February 2018. U.S. Bancorp consented to pay $613 million in penalties and put policies in place to better oversee its customers’ activities. Customers of an illicit payday lending firm whose suspicious actions US Bancorp had failed to disclose received $505 million in September 2018.

Fiserv stated in September 2018 that it would pay US Bancorp $690 million to purchase MoneyPass. The transaction was completed in March 2019. The credit card division of Elan, which issued some of the most well-known cards like Fidelity, BMW, and Mercedes Benz, was not included in the transaction. After Emily James gave $20 of her own money to Marc Eugenio in December2019, the bank fired both James and her supervisor from the call center in Portland, Oregon. Eugenio ran out of fuel and cash on Christmas Eve, and when his U.S. Bank debit card was rejected because money he had deposited two days earlier had not yet been released into his account, he was left stranded at a gas station. James met Eugenio at the petrol station during her break and gave him $20 from her own pocket as a Christmas Eve gesture after an unsuccessful attempt to release the monies. She was sacked from her work for breaking corporate policy, but she was later rehired following an investigation that was sparked by a Nicolas Kristof story that appeared in The New York Times.

Rioting during the George Floyd’s death and the black life matters movement in Minneapolis-Saint Paul in May 2020 resulted in damage to the US Bancorp Center in downtown Minneapolis. On East Lake Street in Minneapolis, two further bank branches were set on fire and completely destroyed. US Bancorp gave the land at 2800 East Lake Street for redevelopment as an affordable housing project and rebuilt the destroyed branch facility at 919 East Lake Street.

U.S. Bancorp and MUFG Union Bank reached an agreement on September21,2021, for $8 billion to be paid for the consumer business. It is the largest transaction for the bank since its $21 billion merger with Milwaukee-based Firstar Corp. in 2001. The agreement with MUFG Union Bank  increased the company’s existing loan base of $294 billion by $58 billion and gave it a significant presence on the U.S. West Coast, particularly in California. The combined bank’s assets  totaled $723 billion.

As part of the intended acquisition of MUFG Union Bank, the company also announced a five-year community benefits plan in May2022. This plan was developed in collaboration with the NCRC and the CRC. The five-year, $100 billion community plan is focused on ensuring that communities of color and those with low and moderate incomes have fair access to capital.