US Bancorp (NYSE:USB) Q4 2019 Earnings Conference Call - Final Transcript

Jan 15, 2020 • 09:00 am ET


US Bancorp (NYSE:USB) Q4 2019 Earnings Conference Call - Final Transcript


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Welcome to US Bancorp's Fourth Quarter 2019 Earnings Conference Call. Following a review of the results by Andy Cecere, Chairman, President and Chief Executive Officer and Terry Dolan, US Bancorp's Vice Chairman and Chief Financial Officer, there will be a formal question-and-answer session. [Operator Instructions] This call will be recorded and available for replay, beginning today at approximately 12 O'clock PM Eastern through Wednesday, January 22nd at 12 Midnight Eastern.

I will now turn the conference call over to Jen Thompson, Director of Investor Relations for US Bancorp.

Jennifer Thompson

Thank you, James and good morning to everyone who has joined our call. Andy Cecere and Terry Dolan are here with me today to review US Bancorp's fourth quarter results and to answer your questions. Andy and Terry will be referencing a slide presentation during their prepared remarks. A copy of the slide presentation as well as our earnings release and supplemental analyst schedules are available on our website at

I would like to remind you that any forward-looking statements made during today's call are subject to risks and uncertainties. Factors that could materially change our current forward looking assumptions are described on page two of today's presentation, in our press release and in our Form 10-K and subsequent reports on file with the SEC.

I'll now turn the call over to Mr. Andy.

Andrew Cecere

Thanks, Jen and good morning everyone and thank you for joining our call. Following our prepared remarks, Terry and I will take your questions.

I'll begin on slide three. We reported earnings per share of $0.90, which included $0.18 per share of notable items which Terry will discuss in more detail in a few moments. Excluding these notable items, we reported earnings per share of $1.08 for the quarter. Loan growth was driven by new client wins and deepening relationships across all our loan portfolios and we delivered a very strong deposit growth. We continue to see strong account and volume growth across our key businesses. Credit quality was stable and our book value per share increased 6.7% from a year ago. In November, we received approval from the Federal Reserve for an incremental share repurchase plan, authorizing repurchases up to $2.5 million of common stock in addition to our existing authorization of $3 billion. In the fourth quarter, we returned $2.9 billion of our earnings to shareholders through dividends and share buybacks.

As indicated on slide four, digital uptake trends remained strong. We are significantly ramping up the launch of our DIY digital experiences that will continue to drive more and more customer interactions both on and off the mobile app as well as higher additional transactional volume.

Slide five provides key performance metrics. On a core basis, we delivered an 18.1% return on tangible common equity in the fourth quarter. For the full year, our core return on tangible common equity was 18.8%.

Now I will turn it over to Terry who will provide detail on the quarter as well as forward-looking guidance.

Terrance R. Dolan

Thanks, Andy. If