U.S. Bancorp Q4 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : Thank you for all the detail that you gave us on the slides. My first question is on the cadence of the cost synergies as it relates to your expected Memorial Day weekend conversion. So first clarification question, the 35% cost synergies, is that a target for full year 2023? And what is that cadence like? Do we expect very little in cost synergies until Memorial Day weekend and then an acceleration in cost synergy capture as the systems converge?

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : Got it. So the -- so in other words, we should anticipate an exit rate by 4Q '23 of well above 35%?

Question: Erika Najarian - UBS Investment Bank, Research Division - Analyst : Got it. And my follow-up question is on the economic outlook. If you could remind us what is being captured in the legacy U.S. Bank reserves in terms of the GDP outlook and the unemployment outlook. And how are you thinking, based on that outlook, charge-offs for legacy U.S. Bank would trend as we anticipate -- it seems like a lot of your peers are anticipating a mild recession from here.