U.S. Bancorp (USB) Q3 2022 Earnings Call Transcript

U.S. Bancorp (NYSE:USB) Q3 2022 Earnings Conference Call October 14, 2022 9:00 AM ET

Company Participants

George Andersen - Director of Investor Relations

Andy Cecere - Chairman, President and Chief Executive Officer

Terry Dolan - Vice Chair and Chief Financial Officer

Conference Call Participants

John Pancari - Evercore

Nathan Stein - Deutsche Bank

Mike Mayo - Wells Fargo Securities

Erika Najarian - UBS

Bill Carcache - Wolfe Research

Gerard Cassidy - RBC

Ken Usdin - Jefferies & Co.

Betsy Graseck - Morgan Stanley

Operator

Welcome to the U.S. Bancorp’s Third Quarter 2022 Earnings Conference Call. Following a review of the results by Andy Cecere, Chairman, President and Chief Executive Officer; and Terry Dolan, Vice Chair 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 11:00 a.m. Central Time.

I will now turn the conference over to George Andersen, Director of Investor Relations for U.S. Bancorp.

George Andersen

Thank you, Allan and good morning, everyone. With me today are Andy Cecere, our Chairman, President and CEO; and Terry Dolan, our Vice Chair and Chief Financial Officer. During their prepared remarks, Andy and Terry will be referencing a slide presentation. A copy of the slide presentation as well as our earnings release and supplemental analyst schedules are available on our website at usbank.com.

I’d like to remind you that any forward-looking statements made during today’s call are subject to risk and uncertainty. Factors that could materially change our current forward-looking assumptions are described on Page 2 of today’s presentation in our press release and in our Form 10-K and subsequent reports on file with the SEC.

I will now turn the call over to Andy.

Andy Cecere

Thanks, George. Good morning, everyone, and thank you for joining our call. Following our prepared remarks, Terry and I will take any questions you have.

And I will begin on Slide 3. In the third quarter, we reported earnings per share of $1.16, which included $0.02 per share of merger and integration charges related to the planned acquisition of MUFG Union Bank. Excluding these notable items, we reported earnings per share of $1.18 for the quarter. During the third quarter, we achieved record net revenue totaling $6.3 billion.

Third quarter results were highlighted by strong revenue growth, well controlled expenses and stable credit quality. This quarter, we added $200 million to our loan loss reserve, reflecting loan growth and are consistent through the cycle underwriting approach to risk management. At September 30, our CET1 capital ratio was 9.7%. Our tangible book value per share totaled $20.73 at September 30, or 3.2% lower than the prior quarter, driven by the impact of rising interest rates on our available-for-sale securities.