Excellent franchise with strong market shares in the Midwestern and western U.S. Diverse and stable revenue sources across fee and interest-income businesses Straightforward business model focused on traditional banking More conservative underwriting than most peers during the recent financial crisis Cautious growth strategy, consisting largely of organic loan growth and strategic bolt-on acquisitions Outperformance versus peers, with predictable revenue and earnings Operating leverage will likely be negative in 2013, largely because of a decline in mortgage refinancing activity. Nonperforming and restructured loans continue to exceed historical levels, which could lead to an increase in charge-offs amid higher interest rates. The stable outlook on the ratings on U.S. Bancorp and its operating subsidiaries (USB) reflects Standard&Poor's Ratings Services' expectation
