U.S. Bancorp (USB) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

April 19, 2023 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome to the U.S. Bancorp First Quarter 2023 Earnings Conference Call. Following a review of the results, there will be a formal question-and-answer session. This call will be recorded and available for replay beginning today at approximately 11 o'clock A.M. Central Time.

I will now turn the conference call over to George Anderson, Senior Vice President and Director of Investor Relations for U.S. Bancorp.

George Anderson - Senior Vice President & Director, Investor Relations

Thank you, Brad. Good morning everyone. With me today are Andy Cecere, our Chairman, President, and Chief Executive Officer; and Terry Dolan, our Vice Chair and Chief Financial Officer. During the prepared remarks, Andy and Terry will be referencing a slide presentation.

A copy of the presentation a s well as our earnings release and supplemental analyst schedules are available on our website at usbank.com. I would 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 two of today's presentation, in our press release, our Form 10-K and its subsequent reports on file with the SEC. Following their prepared remarks, Andy and Terry will take any questions that you have.

I will now turn the call over to Andy.

Andy Cecere - Chairman, President & CEO

Thanks George. Good morning, everyone, and thank you for joining our call. I'll begin on slide three. In the first quarter, we reported earnings per share of $1.04, which includes $0.12 per share of charges related to the MUFG Union Bank acquisition. Excluding those notable items, earnings per share was $1.16. We achieved record net revenue of $7.2 billion for the quarter.

Following our successful close of Union Bank acquisition in December of 2022, first quarter results reflected a full year's benefit of the acquired franchise, continued growth in earning assets, net interest margin expansion, and higher non-interest income led by stronger commercial product and mortgage banking fee revenues.

Slide four details our reported and adjusted income statement results as well as the end of period and average balances and other performance metrics. On the right, you'll see the credit quality remains strong, but is starting to normalize as expected. Our charge-off ratio of 30 basis points as adjusted is well below pre-COVID levels and reflective of our disciplined risk management culture.