U.S. Bancorp Reports Earnings for 1st Quarter 2001

EARNINGS SUMMARY Table 1

($ in millions, except per-share data) Percent Percent

1Q 4Q 1Q Change Change

2001 2000 2000 1Q01/4Q00 1Q01/1Q00



Before merger and restructuring-related

charges*:

Operating

earnings $797.3 $824.2 $729.8 (3.3) 9.2

Earnings per

common

share

(diluted) 0.42 0.43 0.38 (2.3) 10.5

Cash earnings

per common

share

(diluted)** 0.48 0.49 0.43 (2.0) 11.6



Net income 410.1 768.7 686.8 (46.7) (40.3)

Earnings per

common share

(diluted) 0.21 0.40 0.36 (47.5) (41.7)

Cash earnings

per common share

(diluted)** 0.27 0.46 0.40 (41.3) (32.5)



Dividends paid

per common

share 0.1875 0.1625 0.1625 15.4 15.4

Book value per

common share

(period-end) 8.00 7.97 7.31 0.4 9.4



Return on average

common

equity***(%) 20.9 22.2 20.8



Return on average

assets*** (%) 1.98 2.02 1.90



Net interest

margin (%) 4.41 4.33 4.44



Efficiency

ratio*** (%) 50.5 47.8 50.4



* merger and restructuring-related charges (net of taxes) totaled

$387.2 million in 1Q01, $55.5 million in 4Q00 and $43.0 million in

1Q00

** calculated by adding amortization of goodwill and other intangible

assets to operating earnings and net income

*** before merger and restructuring-related charges



Apr 17, 2001, 01:00 ET from U.S. Bancorp

    MINNEAPOLIS, April 17 /PRNewswire/ -- U.S. Bancorp (NYSE:   USB) today
 reported operating earnings of $797.3 million for the first quarter of 2001,
 compared with $729.8 million for the first quarter of 2000.  Operating
 earnings of $.42 per diluted share in the first quarter of 2001 were $.04, or
 10.5 percent, higher than the same period of 2000.  Operating earnings on a
 cash basis increased to $.48 per diluted share in the first quarter of 2001
 from $.43 in the first quarter of 2000.  Return on average common equity and
 return on average assets, excluding merger and restructuring-related charges,
 were 20.9 percent and 1.98 percent, respectively, in the first quarter of
 2001, compared with returns of 20.8 percent and 1.90 percent in the first
 quarter of 2000.
     U.S. Bancorp (the "Company") is the organization created by the merger of
 Firstar Corporation  ("FSR") of Milwaukee, Wis. and the former U.S. Bancorp
 ("USB") of Minneapolis, Minn.  The merger was completed on February 27, 2001,
 as a pooling-of-interests, and prior periods have been restated.  The
 Company's operating earnings of $.42 per diluted share represent a 20.0
 percent increase over Firstar's first quarter of 2000 operating earnings, as
 originally reported, of $.35 per diluted share.  The Company's operating
 earnings of $.42 per diluted share were $.01 higher than Firstar's fourth
 quarter of 2000 earnings of $.41, as originally reported.
     Including after-tax merger and restructuring-related charges of
 $387.2 million in the first quarter of 2001 and $43.0 million in the first
 quarter of 2000, the Company recorded net income for the first quarter of 2001
 of $410.1 million, or $.21 per diluted share, compared with $686.8 million, or
 $.36 per diluted share, for the same period of 2000.
     U.S. Bancorp President and Chief Executive Officer Jerry A. Grundhofer
 said, "I am pleased with the first quarter results of the new U.S. Bancorp.  I
 am proud of what our employees have accomplished in a very short period of
 time -- employees who now have the opportunity to share in the success and
 growth of our new Company through the broad-based stock option grant that we
 announced in March.  We have kept the proper focus on our customers, as
 evidenced by solid first quarter earnings despite a more difficult economic
 environment, and we have made significant progress on the integration of our
 two companies, the former Firstar and the former U.S. Bancorp.  All
 significant decisions related to technology and operations have been finalized
 and scheduled for implementation in 2001 or the first half of 2002.
 Opportunities to improve performance through the introduction of new business
 models, products and services into both franchises have been identified and
 are beginning to be rolled-out.  In March, former Firstar's retail banking
 model was introduced into the west markets, and the strong corporate payment
 services product set of the former U.S. Bancorp was introduced into the east
 markets.  I am very excited about the future of this company.  By bringing
 these two great companies together under one powerful brand, along with our
 nationally recognized Five Star Service Guarantee, we have created an
 organization that will bring better solutions and greater convenience to our
 customers, provide growth opportunities for our employees, value to our
 shareholders and a strong commitment to the communities we serve.  We have the
 employees, the markets, the products, the financial strength and the brand to
 build the best bank in America."
 
 
     SIGNIFICANT ITEMS -- SECURITIES GAINS AND UNUSUAL LOSSES    Table 2
     ($ in millions)
                                                                 1Q 2001
     Unusual or nonrecurring gains
       Investment securities sales                               $200.0
       Sale of principal-only residuals                             7.7
       Other securities gains                                       8.3
          Total unusual or nonrecurring gains                    $216.0
 
     Unusual or nonrecurring losses
       Credit portfolio charges                                  $160.0
       Partnerships and equity investment losses                   36.8
       Mortgage servicing rights impairment                        11.0
       Other                                                       11.6
          Total unusual or nonrecurring losses                   $219.4
 
     Operating earnings for the first quarter of 2001 included a number of
 significant unusual or nonrecurring income and expense items.  Total revenue
 on a taxable-equivalent basis for the first quarter of 2001 grew by
 $282.0 million, or 10.5 percent, over the first quarter of 2000, primarily due
 to $216.0 million of securities gains.  Excluding securities gains, capital
 markets revenues (primarily U.S. Bancorp Piper Jaffray and U.S. Bancorp Libra)
 and trust and asset management-related revenues, total revenue on a
 taxable-equivalent basis for the first quarter of 2001 grew by approximately
 $180 million, or 8.5%, over the same period of 2000.  Total noninterest
 expense, before merger and restructuring-related charges, increased over the
 first quarter of 2000 by $36.7 million, or 2.7 percent, primarily due to $59.4
 million of unusual or nonrecurring expense items.  Without these expense
 items, noninterest expense would have decreased in the first quarter of 2001
 by
 $22.7 million, or 1.7 percent, from the first quarter of 2000, primarily
 reflecting cost savings from recent acquisitions.  Provision for credit losses
 for the first quarter of 2001, excluding merger-related charges, increased by
 $182.6 million over the first quarter of 2000, primarily due to a
 $160.0 million charge to the provision for credit losses incurred in
 connection with an accelerated loan workout strategy.  The additional
 provision for credit losses was taken after an extensive review of the
 Company's commercial portfolio in light of recent declining economic
 conditions and company-specific trends.  In connection with this strategy, the
 Company has written down the carrying values of these loans to estimated
 secondary market prices or liquidation values and intends to aggressively
 pursue the disposition or restructuring of these loans in a relatively short
 period of time.  The net impact of the unusual or nonrecurring items was
 immaterial to the Company's operating earnings in the first quarter of 2001.
     Net charge-offs, excluding merger-related items totaling $90.0 million to
 conform risk management policies and effect certain portfolio restructurings,
 in the first quarter of 2001 were $387.1 million, compared with fourth quarter
 of 2000 net charge-offs of $229.5 million and first quarter of 2000 net
 charge-offs of $183.1 million.  Included in the first quarter of 2001
 charge-offs were $160.0 million of net charge-offs related to the Company's
 accelerated loan workout strategy.  In addition, $21.3 million of net
 charge-offs in the first quarter of 2001 were associated with a portfolio of
 high loan-to-value home equity loans and the indirect automobile portfolio of
 the former U.S. Bancorp.  These portfolios were sold at the end of the first
 quarter as part of the portfolio restructuring.  Excluding the $271.3 million
 in net charge-offs associated with the merger, the credit portfolio review and
 accelerated workout strategy and the sold portfolios, baseline net charge-offs
 in the first quarter of 2001 were $205.8 million (see table 9).  Net
 charge-offs, including merger-related and other risk management actions taken
 during the first quarter of 2001, were $477.1 million.  Nonperforming assets
 increased from $867.0 million at December 31, 2000, to $1,090.8 million at
 March 31, 2001.  Of the $223.8 million increase in nonperforming assets,
 $210.0 million was associated with merger-related actions and management's
 accelerated loan workout strategy.  The ratio of allowance for credit losses
 to nonperforming loans was 176 percent at March 31, 2001, compared with
 233 percent at December 31, 2000. (see tables 10 & 12)
 
 
     LINE OF BUSINESS FINANCIAL PERFORMANCE*
     ($ in millions)                                                  Table 3
                        Pre-tax Operating Income**    Percent Change  1Q 2001
     Business Line       1Q          4Q         1Q     1Q01/   1Q01/  Earnings
                        2001        2000       2000    4Q00    1Q00 Composition
 
 
     Wholesale Banking $514.1      $497.9      $455.5    3.3    12.9     32%
 
     Consumer Banking   603.6       609.7       551.8   (1.0)    9.4     38
 
     Private Client,
      Trust and Asset
      Management        151.1       163.4       154.3   (7.5)   (2.1)    10
 
     Payment Services   282.5       290.3       243.7   (2.7)    15.9    18
 
     Capital Markets     35.7        49.3        71.4  (27.6)  (50.0)     2
 
     Treasury and
      Corporate
      Support            (6.3)     (131.0)     (141.3)    nm      nm     --
 
     Consolidated
      Company        $1,580.7    $1,479.6    $1,335.4    6.8    18.4    100%
 
     *   preliminary data
     **  pre-tax income before merger and restructuring-related charges and
         provision for loan losses
 
     Line of Business
     Within the Company, financial performance is measured by major lines of
 business which include:  Wholesale Banking, Consumer Banking, Private Client,
 Trust and Asset Management, Payment Services, Capital Markets, and Treasury
 and Other Corporate Support.  The business line results are derived from the
 Company's profitability reporting systems.  Designations, assignments and
 allocations may change from time to time as product lines change or segments
 are realigned to better respond to our diverse customer base.  All results for
 2001 and 2000 have been restated to present consistent methodologies for all
 business lines.
     Wholesale Banking offers lending, depository, treasury management and
 other financial services to middle market, large corporate and public sector
 clients.  Wholesale Banking contributed $514.1 million of the Company's
 pre-tax operating income in the first quarter of 2001, a 12.9 percent increase
 over the same period of 2000 and a 3.3 percent increase over the fourth
 quarter of 2000.  Total revenue grew by 14.2 percent from the first quarter of
 2000 to the first quarter of 2001, the result of core loan and deposit growth,
 as well as acquisitions in the equipment finance division, and an increase in
 noninterest income (17.5 percent), particularly cash management-related fees.
 Offsetting the favorable variance in revenue was an increase in noninterest
 expense (20.6 percent).
     Consumer Banking delivers products and services to the broad consumer
 market and small businesses through banking offices, telemarketing, on-line
 service, direct mail and automated teller machines ("ATM").  It encompasses
 community banking, metropolitan banking, small business banking, consumer
 banking and investment sales.  Consumer Banking contributed $603.6 million of
 the Company's pre-tax operating income in the first quarter of 2001,
 a 9.4 percent increase over the same period of 2000 and a 1.0 percent decline
 from the fourth quarter of 2000.  Total revenue growth of 6.6 percent in the
 first quarter of 2001 over the same quarter of 2000 can be primarily
 attributed to an increase in retail deposit and cash management fees, the
 result of core account growth, the acquisition of 41 branches in Tennessee and
 the sale of additional fee-based products.  Mortgage banking revenue and
 investment products fees and commissions also contributed to the favorable
 variance.  Partially offsetting the increase in revenue was an increase in
 noninterest expense (3.2 percent), primarily related to the Tennessee branch
 acquisition.
     Private Client, Trust and Asset Management provides mutual fund processing
 services, trust, private banking and financial advisory services through four
 businesses, including:  the Private Client Group, Corporate Trust,
 Institutional Trust and Custody, and Mutual Fund Services, LLC.  The business
 segment also offers investment management services to several client segments
 including mutual funds, institutional customers, and private asset management.
 Private Client, Trust and Asset Management contributed $151.1 million of the
 Company's pre-tax operating income in the first quarter of 2001, a 2.1 percent
 decline from the same period of 2000 and a 7.5 percent decline from the fourth
 quarter of 2000.  Strong growth in net interest income (17.8 percent) in the
 first quarter of 2001 from the first quarter of 2000, the result of core loan
 and deposit growth, was offset by a decrease in noninterest income
 (3.2 percent) and an increase in noninterest expense (3.9 percent).
     Payment Services includes consumer and business credit cards, corporate
 and purchasing card services, consumer lines of credit, ATM processing and
 merchant processing.  Payment Services contributed $282.5 million of the
 Company's pre-tax operating income in the first quarter of 2001, a
 15.9 percent increase over the same period of 2000 and a 2.7 percent decrease
 from the fourth quarter of 2000.  Strong revenue growth of 11.7 percent,
 primarily due to growth in credit card and payment processing fees, was
 partially offset by an increase in noninterest expense (1.5 percent).
     Capital Markets engages in equity and fixed income trading activities,
 offers investment banking and underwriting services for corporate and public
 sector customers and provides financial advisory services and securities,
 mutual funds, annuities and insurance products to consumers and
 regionally-based businesses through a network of brokerage offices.  Capital
 Markets contributed $35.7 million of the Company's pre-tax operating income in
 the first quarter of 2001, a 50.0 percent decline from the first quarter of
 2000 and a 27.6 percent decline from the fourth quarter of 2000.  The
 unfavorable variances in pre-tax operating income from the first and fourth
 quarters of 2000 were due to significant decreases in fees related to trading,
 investment products fees and commissions and investment banking revenues.
     Treasury and Corporate Support includes the Company's investment and
 residential mortgage portfolios, funding, capital management and asset
 securitization activities, interest rate risk management, the net effect of
 transfer pricing related to loan and deposit balances, and the change in
 residual allocations associated with the provision for credit losses.  It also
 includes business activities managed on a corporate basis, including income
 and expense of enterprise-wide operations and administrative support
 functions.  Treasury and Corporate Support recorded a pre-tax operating loss
 of $6.3 million in the first quarter of 2001, compared to a loss of
 $141.3 million in the first quarter of 2000 and a loss of $131.0 million in
 the fourth quarter of 2000.  Included in this business segment in the first
 quarter of 2001 were approximately $208 million of securities gains partially
 offset by $36.8 million of unusual expense items.
 
 
     INCOME STATEMENT HIGHLIGHTS                                        Table 4
     (Taxable-equivalent basis, $ in millions,             Percent      Percent
      except per-share
      data)          1Q           4Q           1Q           Change      Change
                    2001         2000         2000        1Q01/4Q00   1Q01/1Q00
 
     Net interest
      income      $1,574.1     $1,562.5     $1,511.6          0.7         4.1
 
     Noninterest
      income       1,400.9      1,264.9      1,181.4         10.8        18.6
 
     Total revenue 2,975.0      2,827.4      2,693.0          5.2        10.5
 
     Noninterest
      expense*     1,394.3      1,347.8      1,357.6          3.5         2.7
 
     Operating
      income
      before
      merger and
      restructuring-
      related
      charges      1,580.7      1,479.6      1,335.4          6.8        18.4
 
     Provision for
      credit losses* 365.8        229.5        183.2         59.4        99.7
 
     Income before
      taxes, merger and
      restructuring-
      related
      charges      1,214.9      1,250.1      1,152.2         (2.8)        5.4
 
     Taxable-
      equivalent
      adjustment      18.5         21.0         22.0        (11.9)      (15.9)
 
     Income taxes*   399.1        404.9        400.4         (1.4)       (0.3)
 
     Income before
      merger and
      restructuring-
      related
      charges        797.3        824.2        729.8         (3.3)        9.2
 
     Merger and
      restructuring-
      related charges
      (after-tax)   (387.2)       (55.5)       (43.0)          nm          nm
 
     Net income     $410.1       $768.7       $686.8        (46.7)      (40.3)
 
 
     Per diluted
      common share:
       Earnings,
        before
        merger and
        restructuring-
        related
        charges      $0.42        $0.43        $0.38         (2.3)       10.5
 
     Earnings on a
      cash basis,
      before merger
      and
      restructuring-
      related
      charges**      $0.48        $0.49        $0.43         (2.0)       11.6
 
     Net income      $0.21        $0.40        $0.36        (47.5)      (41.7)
 
     Earnings on
      a cash
      basis**        $0.27        $0.46        $0.40        (41.3)      (32.5)
 
     *   before effect of merger and restructuring-related charges
 
     **  calculated by adding amortization of goodwill and other intangible
         assets to operating earnings and net income
 
     Net Interest Income
     First quarter net interest income on a taxable-equivalent basis was
 $1,574.1 million, compared with $1,511.6 million recorded in the first quarter
 of 2000.  Average earning assets for the period increased over the first
 quarter of 2000 by $7.3 billion, or 5.3 percent, primarily driven by core
 commercial and retail loan growth of $9.3 billion and the impact of
 acquisitions, offset by a $3.7 billion decline in lower margin residential
 mortgages.  The net interest margin was essentially flat in the first quarter
 of 2001 at 4.41 percent, compared with 4.44 percent in the first quarter of
 2000.  The 8 basis point improvement in the net interest margin in the first
 quarter of 2001 from the fourth quarter of 2000 reflects the benefit of the
 declining rate environment and product re-pricing dynamics.
 
 
     AVERAGE LOANS                                                     Table 5
     ($ in millions)                                       Percent     Percent
                     1Q           4Q           1Q          Change      Change
                    2001         2000         2000        1Q01/4Q00  1Q01/1Q00
 
     Commercial    $46,805      $46,886      $43,055         (0.2)        8.7
     Lease financing 5,768        5,603        3,826          2.9        50.8
        Total
         commercial 52,573       52,489       46,881          0.2        12.1
 
     Commercial
      mortgages     19,305       19,368       18,753         (0.3)        2.9
     Construction
      and
      development    7,151        7,126        6,633          0.4         7.8
        Total
         commercial
         real
         estate     26,456       26,494       25,386         (0.1)        4.2
 
     Residential
      mortgages      7,618        8,840       11,342        (13.8)      (32.8)
 
     Credit card     5,655        5,216        4,744          8.4        19.2
     Retail leasing  4,291        3,957        2,328          8.4        84.3
     Other retail   25,176       25,185       23,872           --         5.5
        Total
         retail     35,122       34,358       30,944          2.2        13.5
 
     Total loans  $121,769     $122,181     $114,553         (0.3)        6.3
 
     Total loans,
      excl.
      residential
      mortgages   $114,151     $113,341     $103,211          0.7        10.6
 
     Note:  Average loan balances in the Company's loan conduit, Stellar
            Funding Group, Inc., totaled $3,276 million, $2,988 million and
            $2,480 in 1Q01, 4Q00 and 1Q00, respectively
 
     Excluding residential mortgage loans, average loans for the first quarter
 were higher by $10.9 billion, or 10.6 percent, than the first quarter of 2000,
 reflecting both core loan growth and acquisitions.  In addition, $2.2 billion
 of short term, high quality, low yielding commercial loans were funded in the
 loan conduit, Stellar Funding Group, Inc. in the first quarter of 2001.  Total
 average loans for the first quarter, excluding residential mortgage loans, but
 including loans funded in the loan conduit, grew by $11.7 billion, or
 11.1 percent, over the first quarter of 2000.
     Excluding residential mortgage loans, average loans for the first quarter
 of 2001 remained essentially flat to the fourth quarter 2000.  Total average
 loans, excluding residential mortgage loans, but including loans funded in the
 loan conduit, grew by $1.1 billion, or .9 percent, in the first quarter of
 2001 over the fourth quarter of 2000.  Total loans, excluding residential
 mortgage loans, at March 31, 2001, were $2.4 billion lower than at
 December 31, 2000, reflecting the $1.3 billion sale of a portfolio of high
 loan-to-value home equity loans and the indirect automobile portfolio held by
 the former U.S. Bancorp, in addition to the transfer of $2.2 billion of
 commercial loans into the loan conduit.
     Investment securities at March 31, 2001, were $1.2 billion less than at
 March 31, 2000, and $1.1 billion less than at December 31, 2000, primarily
 reflecting net sales of securities.  During the first quarter of 2001, the
 Company sold $8.7 billion of investment securities and purchased $6.5 billion
 of investment securities.
     Average noninterest-bearing deposits in the first quarter of 2001 were
 slightly lower than the first quarter of 2000.  Average interest-bearing
 deposits, however, grew by $3.1 billion, or 4.0 percent, over the first
 quarter of 2000, reflecting bank acquisitions, growth in core money market
 deposits and increases in time deposits greater than $100,000.
 
 
     NONINTEREST INCOME                                                Table 6
     ($ in millions)                                        Percent    Percent
                    1Q           4Q            1Q           Change     Change
                   2001         2000          2000         1Q01/4Q00  1Q01/1Q00
 
     Credit card and
      payment
      processing
      revenue      $249.7       $264.7        $218.9         (5.7)       14.1
 
     Trust and
      investment
      management
      fees          225.0        233.8         230.9         (3.8)       (2.6)
 
     Deposit
      service
      charges       146.5        145.4         123.4          0.8        18.7
 
     Investment
      products
      fees and
      commissions   125.7        108.9         140.8         15.4       (10.7)
 
     Cash
      management
      fees           76.8         71.8          71.8          7.0         7.0
 
     Commercial
      product
      revenue        76.1         85.2          61.6        (10.7)       23.5
 
     Trading account
      profits and
      commissions    71.9         62.4          85.3         15.2       (15.7)
 
     Investment
      banking
      revenue        60.2         92.8          94.0        (35.1)      (36.0)
 
     Mortgage
      banking
      revenue        48.2         54.4          42.7        (11.4)       12.9
 
     Securities
      gains
      (losses),
      net           216.0          7.0          (0.3)          nm          nm
 
     Other          104.8        138.5         112.3        (24.3)       (6.7)
 
 
     Total
      noninterest
      income     $1,400.9     $1,264.9      $1,181.4         10.8        18.6
 
     Noninterest Income
     First quarter noninterest income was $1,400.9 million, an increase of
 $219.5 million, or 18.6 percent, from the same quarter of 2000, and a
 $136.0 million, or 10.8 percent, increase from the fourth quarter of 2000.
 Excluding the impact of securities gains, noninterest income in the first
 quarter of 2001 would have been essentially flat to the first quarter of 2000,
 and $73.0 million, or 5.8 percent, lower than the fourth quarter of 2000.
 Credit card and payment processing revenue was higher in the first quarter of
 2001 over the same period of 2000 by $30.8 million, or 14.1 percent,
 reflecting continued growth in corporate, merchant and retail card product
 fees.  Deposit service charges, cash management fees, commercial product
 revenue, and mortgage banking revenue also improved in the first quarter of
 2001 over the first quarter of 2000 by $23.1 million (18.7 percent),
 $5.0 million (7.0 percent), $14.5 million (23.5 percent), and $5.5 million
 (12.9 percent), respectively.  The increases in deposit service charges, cash
 management fees and commercial product revenue were primarily driven by growth
 in core business and product fee enhancements during 2000.  The increase in
 mortgage banking revenue in the first quarter of 2001 over the first quarter
 of 2000 was due to an increase in origination fees, partially offset by a
 decrease in gains on the sale of servicing rights.  Offsetting the growth in
 these items year over year was a reduction in capital markets (primarily U.S.
 Bancorp Piper Jaffray and U.S. Bancorp Libra) and trust and asset management-
 related revenues, which declined by approximately
 $100 million from the first quarter of 2000, reflecting adverse equity capital
 market conditions and declining asset values.  Excluding the impact of
 securities gains and these market-driven revenues, first quarter of 2001
 noninterest income would have increased by approximately $114 million, or
 18.2 percent.
     Excluding securities gains, noninterest income declined in the first
 quarter of 2001 from the fourth quarter of 2000.  Credit card and payment
 processing revenue decreased by $15.0 million, reflecting seasonal spending
 patterns.  Mortgage banking revenue declined by $6.2 million, the result of
 lower gains on the sale of servicing rights, partially offset by growth in
 mortgage loan originations and servicing income.  Given the current interest
 rate environment, the Company expects continued growth in revenue from
 mortgage loan originations in the second quarter.  Approximately $45 million
 of the reduction in noninterest income in the first quarter of 2001 from the
 fourth quarter of 2000 was due to the decline in capital markets and trust and
 asset management-related revenue.
 
 
     NONINTEREST EXPENSE                                               Table 7
     ($ in millions)                                        Percent    Percent
                      1Q           4Q           1Q           Change     Change
                     2001         2000         2000        1Q01/4Q00  1Q01/1Q00
 
     Salaries       $590.5       $593.7       $629.6         (0.5)       (6.2)
 
     Employee
      benefits       108.1         98.2        111.9         10.1        (3.4)
 
     Net occupancy   110.1        104.2         97.2          5.7        13.3
 
     Furniture and
      equipment       76.9         76.2         76.7          0.9         0.3
 
     Postage          46.9         44.2         44.6          6.1         5.2
 
     Goodwill         70.5         64.2         58.4          9.8        20.7
 
     Other intangible
      assets          43.9         37.8         37.4         16.1        17.4
 
     Other           347.4        329.3        301.8          5.5        15.1
 
       Subtotal    1,394.3      1,347.8      1,357.6          3.5         2.7
 
 
     Merger and
      restructuring
      -related
      charges        404.2         84.1         65.0
 
 
     Total
      noninterest
      expense     $1,798.5     $1,431.9     $1,422.6
 
     Noninterest Expense
     First quarter noninterest expense, before merger and restructuring-related
 charges, totaled $1,394.3 million, an increase of $36.7 million, or
 2.7 percent, from the first quarter of 2000.  The increase in noninterest
 expense was primarily the result of unusual or nonrecurring expense items
 totaling $59.4 million, offset by net cost savings from acquisitions and a
 decline of approximately $56 million in expenses associated with the slow-down
 in capital market-related activities.  Excluding the $59.4 million of unusual
 or nonrecurring expense items, before merger and restructuring-related
 charges, noninterest expense would have decreased in the first quarter of 2001
 by $22.7 million, or 1.7 percent, from the first quarter of 2000.
     First quarter of 2001 noninterest expense, before merger and
 restructuring-related charges, was higher than the fourth quarter of 2000 by
 $46.5 million, or 3.5 percent, primarily due to the $59.4 million of unusual
 or nonrecurring expense items.  Excluding unusual or nonrecurring expense
 items, before merger and restructuring-related charges, noninterest expense in
 the first quarter of 2001 would have declined by $12.9 million from the fourth
 quarter of 2000, primarily due to the reduction in capital-market related
 activities, partially offset by seasonally higher employee benefits and
 increases in net occupancy of $5.9 million (5.7 percent), goodwill expense of
 $6.3 million (9.8 percent) and other intangible expense of $6.1 million
 (16.1 percent).  The increase in net occupancy, goodwill and other intangible
 expense was primarily due to the purchase of 41 branches in Tennessee on
 December 8, 2000, by the former Firstar.
 
 
     SIGNIFICANT ITEMS -- MERGER AND RESTRUCTURING                   Table 8
     ($ in millions)
                                      Estimated Timing                Actual
     Summary of Charges       Plan          2001         2002         1Q 2001
 
     Firstar/U.S. Bancorp
 
       Severance and
        employee-related
        costs                $187.4        $194.9        ($7.5)       $123.6
 
       Building and
        equipment             103.5          61.6         41.9          23.6
 
       Investment banking
        and transaction
        costs                  58.5          58.5           --          60.6
 
       Charitable foundation   76.0          76.0           --          76.0
 
       Restructurings         178.1         178.1           --         181.6
 
       Branch sale            (64.0)        (64.0)          --            --
 
       Other, net             103.8          65.3         38.5          38.5
 
         Subtotal             643.3         570.4         72.9         503.9
 
       Conversion and
        integration           326.7         195.6        131.1          19.2
 
          Total Firstar/
           U.S. Bancorp*      970.0         766.0        204.0         523.1
 
     U.S. Bancorp Piper
      Jaffray restructuring    26.0          26.0           --          22.6
 
     Other acquisitions, net   75.0          55.0         20.0          25.1
 
          Total merger and
           restructuring   $1,071.0        $847.0       $224.0        $570.8
 
     *  originally estimated to be $800 million
 
     Earnings in the first quarter of 2001 included merger and
 restructuring-related charges of $570.8 million.  Total merger and
 restructuring-related charges included $356.5 million of merger-related
 noninterest expense and $166.6 million in provision for credit losses
 associated with the Firstar/U.S. Bancorp merger, $22.6 million of
 restructuring expense for U.S. Bancorp Piper Jaffray and $25.1 million of
 noninterest expense for other recent acquisitions, including Mercantile, the
 Tennessee branch purchase and Scripps Financial.
     The $356.5 million of merger-related noninterest expense associated with
 the Firstar/U.S. Bancorp merger included $123.6 million of severance and
 employee-related costs, $23.6 million of building and equipment costs,
 $60.6 million of investment banking and transaction costs, $76.0 million of
 contributions to charitable foundations, $15.0 million of non-credit related
 restructurings, $38.5 million for asset impairments and other costs and
 $19.2 million of conversion and integration expense.  In addition, the Company
 recorded $166.6 million of merger-related provision for credit losses, which
 included $90.0 million of charge-offs taken on credits with pre-charge off
 commitments totaling $350 million.  These charge-offs were taken to align risk
 management practices for larger commercial credits, align charge-off policies
 and to expedite the Company's transition out of a segment of the health care
 industry.  The write-down of several large commercial loans, loans originally
 held separately by both Firstar and the former U.S. Bancorp, was primarily
 taken to allow the Company to exit or reduce these credits to conform with the
 credit exposure policy of the combined entity.  An additional $76.6 million of
 provision for credit losses was included in the merger-related provision for
 credit losses to account for the sale of a portfolio of high loan-to-value
 home equity loans and the indirect automobile loan portfolio of the former
 U.S. Bancorp.  The balance of these portfolios totaled approximately
 $1.3 billion.
 
 
     SIGNIFICANT ITEMS -- CREDIT INITIATIVES                       Table 9
     ($ in millions)                                      Provision
                             Net Charge-offs        Operating       "GAAP"
                              and Loan Sales          Basis*         Basis
 
     Summary of net charge-offs
 
      Merger-related items             $90.0                         $90.0
 
      Charge-offs related to
       consumer loans sold              21.3
 
      Accelerated commercial
       workout strategy                160.0          $160.0         160.0
 
      Baseline charge-offs             205.8           205.8         205.8
                                       477.1           365.8         455.8
 
 
      Losses from consumer loans sold  113.6                          76.6
 
       Total                          $590.7          $365.8        $532.4
 
     *  excluding merger-related charges
 
     In response to significant changes in the securities markets during the
 past six months, including increased volatility, changes in equity valuations,
 a slow down in the market for new and secondary issuances of equity, and the
 increasingly competitive environment for the industry, U.S. Bancorp Piper
 Jaffray is restructuring its operations.  The restructuring is expected to
 improve the operating efficiency of the individual businesses by removing
 excess capacity from the product distribution system and by implementing new,
 more effective operating models.  Of the $26.0 million of total restructuring
 expense to be incurred in 2001, $22.6 million was expensed in the first
 quarter of 2001.
     Total merger-related expenses associated with the merger of the former
 Firstar and the former U.S. Bancorp are expected to be $970 million, exceeding
 the original estimate of $800 million by $170 million.  The majority of the
 increase is due to risk management policy conformance and the restructuring of
 the credit portfolio, which were not anticipated at the time the merger was
 announced.  This credit portfolio restructuring, however, is expected to
 enhance the overall credit risk profile of the Company.  In addition, cost
 savings associated with the merger of Firstar and the former U.S. Bancorp are
 also expected to be higher than the original estimate of $266 million.  The
 Company now anticipates that cost savings from the merger will be
 approximately $325 million, with an accelerated phase-in of the cost savings
 in 2001.  Along with the additional cost savings, the Company has identified
 revenue enhancements that were not originally included in the transaction
 economics.
 
 
     ALLOWANCE FOR CREDIT LOSSES                                      Table 10
     ($ in millions)      1Q2001           4Q        3Q        2Q        1Q
                "Normalized*"  Actual     2000      2000      2000      2000
 
 
     Balance, beginning of
      period        $1,786.9  $1,786.9  $1,776.6  $1,757.0  $1,726.1  $1,710.3
 
     Net charge-offs
      Commercial        53.9     270.3      69.0      68.9      68.5      49.4
      Lease financing    6.4      19.6       7.2       4.8       5.6       3.1
        Total
         commercial     60.3     289.9      76.2      73.7      74.1      52.5
      Commercial
       mortgages         3.1      28.5       6.8       0.7      (2.7)      0.2
      Construction and
       development       0.8       0.8       3.9       5.8      (1.6)     (0.4)
        Total commercial
         real estate     3.9      29.3      10.7       6.5      (4.3)     (0.2)
      Residential
       mortgages         3.2       3.2       3.0       2.3       2.3       4.8
      Credit card       57.8      57.8      54.4      52.4      52.8      48.7
      Retail leasing     6.2       6.2       4.6       3.7       2.6       1.9
      Other retail      95.7      90.7      80.6      75.3      71.4      75.4
        Total retail   159.7     154.7     139.6     131.4     126.8     126.0
         Total net
          charge-offs  227.1     477.1     229.5     213.9     198.9     183.1
 
     Provision for
      credit losses    282.4     532.4     229.5     214.0     201.3     183.2
     Losses from
      consumer loan
      sales           (113.6)   (113.6)       --        --        --        --
     Acquisitions and
      other changes      0.5       0.5      10.3      19.5      28.5      15.7
 
     Balance, end of
      period        $1,729.1  $1,729.1  $1,786.9  $1,776.6  $1,757.0  $1,726.1
 
     Net charge-offs
      to average
      loans (%)         0.76      1.59      0.75      0.71      0.68      0.64
 
     Allowance for
      credit losses to
      period-end
      loans (%)         1.45      1.45      1.46      1.46      1.48      1.50
 
     *  categories adjusted for merger-related ($90.0 million) and portfolio
        restructuring-related ($160.0 million) net-charge-offs
 
     Credit Quality
     The allowance for credit losses was $1,729.1 million at March 31, 2001,
 lower than the allowance for credit losses of $1,786.9 million at December 31,
 2000, principally due to reductions related to the sale of a portfolio of high
 loan-to-value home equity loans and indirect automobile loans.  The ratio of
 allowance for credit losses to nonperforming loans was 176 percent at
 March 31, 2001, down from the ratio of 233 percent at December 31, 2000.  The
 ratio of allowance for credit losses to period-end loans was 1.45 percent at
 March 31, 2001, compared with the ratio of 1.46 percent at December 31, 2000.
     Total net charge-offs, before merger-related items, in the first quarter
 of 2001 were $387.1 million, compared with the fourth quarter of 2000 net
 charge-offs of $229.5 million and the first quarter of 2000 net charge-offs of
 $183.1 million.  Total net charge-offs, before merger-related items, included
 $160.0 million of charge-offs taken on credits with pre-charge off commitments
 totaling $480 million related to the Company's accelerated loan workout
 strategy.  Total retail loan net charge-offs of $154.7 million were higher
 than the same period of 2000 by $28.7 million, or 22.8 percent, and
 $15.1 million, or 10.8 percent, more than the fourth quarter of 2000.
 Included in the first quarter of 2001 retail loan charge-offs were
 $21.3 million of charge-offs associated with portfolios sold at the end of the
 quarter.  Retail loan net charge-offs as a percent of average loans
 outstanding were 1.79 percent in the first quarter of 2001, compared with
 1.62 percent and 1.64 percent in the fourth quarter of 2000 and first quarter
 of 2000, respectively.  Excluding the net charge-offs related to the sold
 portfolios, retail loan net charge-offs as a percent of average loans
 outstanding would have been 1.60 percent.
     Commercial and commercial real estate loan net charge-offs were
 $319.2 million for the first quarter of 2001, or 1.64 percent of average loans
 outstanding, compared with $86.9 million, or .44 percent, in the fourth
 quarter of 2000 and $52.3 million, or .29 percent, of average loans
 outstanding, in the first quarter of 2000.   Commercial and commercial real
 estate loan net charge-offs in the first quarter of 2001 included
 $255.0 million in merger-related charge-offs and charge-offs associated with
 the Company's accelerated loan workout strategy.  Excluding net charge-offs
 associated with the merger and accelerated workout strategy, commercial and
 commercial real estate loan net charge-offs were .33 percent of average loans
 outstanding.  The Company expects total net charge-offs in the second quarter
 of 2001 to increase modestly from the "normalized" net charge-offs reported in
 the first quarter of 2001 (see table 10).
 
 
     CREDIT RATIOS                                                    Table 11
                     Mar 31       Dec 31       Sep 30       Jun 30      Mar 31
                      2001         2000         2000         2000        2000
     Net charge-offs ratios*
      Commercial      2.34         0.59         0.59         0.60        0.46
      Lease financing 1.38         0.51         0.43         0.54        0.33
       Total
        commercial    2.24         0.58         0.57         0.60        0.45
 
      Commercial real
       estate         0.45         0.16         0.10        (0.07)         --
 
      Residential
       mortgages      0.17         0.14         0.10         0.10        0.17
 
      Credit card     4.15         4.15         4.16         4.36        4.13
      Retail leasing  0.59         0.46         0.43         0.37        0.33
      Other retail    1.46         1.27         1.22         1.18        1.27
       Total retail   1.79         1.62         1.58         1.59        1.64
 
     Total net
      charge-offs     1.59         0.75         0.71         0.68        0.64
 
     Delinquent loan
      ratios**
       Commercial
        past due
        90+ days      1.22         0.95         0.84         0.78        0.68
       Consumer
        past due
        90+ days      1.01         0.92         0.79         0.74        0.79
 
     *   annualized and calculated on average loan balances
 
     **  ratios include nonperforming loans and are expressed as a percent of
         ending loan balances
 
 
     ASSET QUALITY                                                    Table 12
     ($ in millions)
                    Mar 31       Dec 31       Sep 30       Jun 30      Mar 31
                     2001         2000         2000         2000        2000
     Nonperforming
      loans
 
      Commercial    $631.9       $470.4       $383.8       $325.3      $266.1
 
      Lease
       financing     103.8         70.5         57.5         53.5        33.0
 
        Total
         commercial  735.7        540.9        441.3        378.8       299.1
 
      Commercial
       mortgages      98.5        105.5        107.6        103.4       114.9
 
      Construction
       and
       development    57.8         38.2         34.8         24.1        32.9
 
        Total
         commercial
         real estate 156.3        143.7        142.4        127.5       147.8
 
      Residential
       mortgages      64.8         56.9         60.7         63.5        74.2
 
      Retail          25.1         23.8         22.0         26.3        27.2
 
     Total
      nonperforming
      loans          981.9        765.3        666.4        596.1       548.3
 
 
     Other real
      estate          55.0         61.1         42.6         42.0        43.7
 
     Other
      nonperforming
      assets          53.9         40.6         30.4         30.1        30.4
 
 
     Total
      nonperforming
      assets*     $1,090.8       $867.0       $739.4       $668.2      $622.4
 
 
     Accruing loans
      90 days past
      due           $390.7       $385.2       $329.1       $319.7      $274.6
 
 
     Allowance to
      nonperforming
      loans (%)        176          233          267          295         315
 
     Allowance to
      nonperforming
      assets (%)       159          206          240          263         277
 
     Nonperforming
      assets to loans
      plus ORE (%)    0.91         0.71         0.61         0.56        0.54
 
     *  does not include accruing loans 90 days past due
 
     Nonperforming assets at March 31, 2001, totaled $1,090.8 million, compared
 with $867.0 million at December 31, 2000, and $622.4 million at March 31,
 2000.  $210.0 million of the increase in nonperforming assets from
 December 31, 2000, to March 31, 2001, was due to the merger-related and risk
 management actions taken during the quarter, as credits were reduced to
 secondary market value and placed on nonperforming status.  The ratio of
 nonperforming assets to loans and other real estate was .91 percent at
 March 31, 2001, compared with .71 percent at December 31, 2000, and
 .54 percent at March 31, 2000.  Although the Company has credit and non-credit
 relationships with companies in the energy industry, the Company does not have
 direct credit exposure to troubled California utilities.  The Company expects
 nonperforming loans to decline modestly from the March 31, 2001 totals through
 the remainder of 2001.
 
 
     CAPITAL POSITION                                                Table 13
     ($ in
      millions)    Mar 31       Dec 31       Sep 30       Jun 30      Mar 31
                    2001         2000         2000         2000        2000
 
     Total shareholders'
      equity       $15,243      $15,168      $14,334      $14,137     $14,014
     Tier 1 capital 11,831       11,602       11,179       11,125      11,042
     Total
      risk-based
      capital       17,135       17,038       16,740       16,718      16,430
 
     Common equity
      to assets       9.5%          9.2%         8.9%         8.8%        9.0%
     Tangible
      common equity
      to assets*      7.2           6.8          6.6          6.5         6.7
     Tier 1 capital
      ratio           7.4           7.2          7.1          7.2         7.2
     Total risk-based
      capital ratio  10.7          10.6         10.6         10.8        10.8
     Leverage ratio   7.5           7.4          7.2          7.2         7.4
 
     *  calculated by deducting goodwill from shareholders' equity and assets
 
     Total shareholder's equity was $15.2 billion at March 31, 2001, an
 increase of $1.2 billion from the $14.0 billion reported at March 31, 2000.
 The increase was the result of strong corporate earnings, including
 merger-related charges, offset by dividend payments and share buybacks in the
 second and third quarters of 2000.
     Tangible common equity to assets was 7.2 percent at March 31, 2001,
 compared with 6.8 percent at December 31, 2000, and 6.7 percent at March 31,
 2000.  The Tier 1 capital ratio was 7.4 percent at March 31, 2001, compared
 with 7.2 percent at December 31, 2000, and at March 31, 2000.  The total
 risk-based capital ratio was 10.7 percent at March 31, 2001, compared with
 10.6 percent at December 31, 2000, and 10.8 percent at March 31, 2000, and the
 leverage ratio was 7.5 percent at March 31, 2001, compared with 7.4 percent at
 December 31, 2000, and at March 31, 2000.  All regulatory ratios continue to
 be in excess of stated "well capitalized" requirements.
 
 
     COMMON SHARES                                                   Table 14
     (Millions)      1Q           4Q           3Q           2Q          1Q
                    2001         2000         2000         2000        2000
 
     Beginning shares
      outstanding  1,902.1      1,890.3      1,905.5      1,917.5     1,928.5
 
 
     Shares issued
      for stock
      option and
      stock
      purchase
      plans,
      acquisitions
      and other
      corporate
      purposes         3.2         11.8          1.9          8.2        10.3
 
     Shares
      repurchased       --           --        (17.1)       (20.2)      (21.3)
 
     Ending shares
      outstanding  1,905.3      1,902.1      1,890.3      1,905.5     1,917.5
 
     The stock repurchase programs of Firstar and the former U.S. Bancorp were
 rescinded on October 4, 2000, and January 17, 2001, respectively, in
 connection with the planned merger of the two companies.
     Minneapolis-based U.S. Bancorp ("USB"), with $160 billion in assets, is
 the 8th largest financial services holding company in the United States.  The
 company operates 2,242 banking offices and 5,208 ATMs, and provides a
 comprehensive line of banking, brokerage, insurance, investment, mortgage, and
 trust payment services products to consumers, businesses and institutions.
 U.S. Bancorp is the parent company of Firstar Banks and U.S. Bank.  Visit U.S.
 Bancorp on the web at http://www.usbank.com and Firstar Bank at
 http://www.firstar.com
 
     A RECORDED REVIEW OF THE FINANCIAL RESULTS BY VICE CHAIRMAN AND CHIEF
 FINANCIAL OFFICER DAVID M. MOFFETT WILL BE AVAILABLE BY TELEPHONE OR ON THE
 INTERNET.  The recorded message will be available from 10:30 A.M. on Tuesday,
 April 17, 2001 through 12:00 midnight on Monday, April 23, 2001.  To access
 the recorded message dial 800-642-1687 and enter ID number 434143.  If calling
 from outside the United States, please dial 706-645-9291 and enter the ID
 number.
 
     Forward-Looking Statements
     This press release contains forward-looking statements.  Statements that
 are not historical or current facts, including statements about beliefs and
 expectations, are forward-looking statements.  These forward-looking
 statements cover, among other things, projected earnings growth, anticipated
 future expenses and revenues, and the future prospects of the Company.
 Forward-looking statements involve inherent risks and uncertainties, and
 important factors could cause actual results to differ materially from those
 anticipated, including the following, in addition to those contained in the
 Company's reports on file with the SEC:  (i) general economic or industry
 conditions could be less favorable than expected, resulting in a deterioration
 in credit quality, a change in the allowance for credit losses, or a reduced
 demand for credit or fee-based products and services; (ii) changes in the
 domestic interest rate environment could reduce net interest income and could
 increase credit losses; (iii) the conditions of the securities markets could
 change, adversely affecting revenues from capital markets businesses, the
 value or credit quality of the Company's on-balance sheet and off-balance
 sheet assets, or the availability and terms of funding necessary to meet the
 Company's liquidity needs; (iv) changes in the extensive laws, regulations and
 policies governing financial services companies could alter the Company's
 business environment or affect operations; (v) the potential need to adapt to
 industry changes in information technology systems, on which the Company is
 highly dependent, could present operational issues or require significant
 capital spending; (vi) competitive pressures could intensify and affect the
 Company's profitability, including as a result of continued industry
 consolidation, the increased availability of financial services from
 non-banks, technological developments such as the Internet, or bank regulatory
 reform; and (vii) acquisitions may not produce revenue enhancements or cost
 savings at levels or within time frames originally anticipated, or may result
 in unforeseen integration difficulties.  Forward-looking statements speak only
 as of the date they are made, and the Company undertakes no obligation to
 update them in light of new information or future events.
 
 
     U.S. Bancorp
     CONSOLIDATED STATEMENT OF INCOME
 
     (Dollars in Millions, Except Per               Three Months Ended
     Share Data)                             March 31,  December 31, March 31,
     (Unaudited)                               2001        2000        2000
     Interest Income
     Loans                                   $2,660.9    $2,787.9    $2,472.1
     Loans held for sale                         16.6        22.2        12.0
     Investment securities
          Taxable                               253.3       251.3       251.0
          Non-taxable                            31.2        33.4        38.9
     Money market investments                     8.9        10.8        13.6
     Trading securities                          15.9        14.0        14.3
     Other interest income                       32.0        39.4        37.3
               Total interest income          3,018.8     3,159.0     2,839.2
 
     Interest Expense
     Deposits                                   883.7       975.7       813.2
     Short-term borrowings                      219.1       220.7       171.1
     Long-term debt                             332.8       398.3       336.9
     Company-obligated mandatorily
      redeemable preferred securities of
      subsidiary trusts holding solely the
      junior subordinated debentures of the
      parent company                             27.6        22.8        28.4
               Total interest expense         1,463.2     1,617.5     1,349.6
     Net interest income                      1,555.6     1,541.5     1,489.6
     Provision for credit losses                532.4       229.5       183.2
     Net interest income after provision
      for credit losses                       1,023.2     1,312.0     1,306.4
 
     Noninterest Income
     Credit card and payment processing
      revenue                                   249.7       264.7       218.9
     Trust and investment management fees       225.0       233.8       230.9
     Deposit service charges                    146.5       145.4       123.4
     Investment products fees and
      commissions                               125.7       108.9       140.8
     Cash management fees                        76.8        71.8        71.8
     Commercial product revenue                  76.1        85.2        61.6
     Trading account profits and
      commissions                                71.9        62.4        85.3
     Investment banking revenue                  60.2        92.8        94.0
     Mortgage banking revenue                    48.2        54.4        42.7
     Securities gains (losses), net             216.0         7.0         (.3)
     Other                                      104.8       138.5       112.3
               Total noninterest income       1,400.9     1,264.9     1,181.4
 
     Noninterest Expense
     Salaries                                   590.5       593.7       629.6
     Employee benefits                          108.1        98.2       111.9
     Net occupancy                              110.1       104.2        97.2
     Furniture and equipment                     76.9        76.2        76.7
     Postage                                     46.9        44.2        44.6
     Goodwill                                    70.5        64.2        58.4
     Other intangible assets                     43.9        37.8        37.4
     Merger and restructuring-related
      charges                                   404.2        84.1        65.0
     Other                                      347.4       329.3       301.8
               Total noninterest expense      1,798.5     1,431.9     1,422.6
 
     Income before income taxes                 625.6     1,145.0     1,065.2
     Applicable income taxes                    215.5       376.3       378.4
     Net income                                $410.1      $768.7      $686.8
 
     Earnings Per Common Share
     Average shares outstanding  (in
      millions)                               1,901.1     1,895.7     1,921.7
     Earnings per share                          $.22        $.41        $.36
 
     Diluted average shares outstanding
      (in millions)                           1,915.7     1,907.7     1,933.4
     Diluted earnings per share                  $.21        $.40        $.36
 
 
     U.S. Bancorp
     CONSOLIDATED ENDING BALANCE SHEET
 
 
                                             March 31,  December 31,  March 31,
     (Dollars in Millions)                     2001         2000        2000
     Assets                                 (Unaudited)             (Unaudited)
     Cash and due from banks                   $7,252      $8,475      $6,644
     Money market investments                     523         657       1,013
     Trading account securities                   811         753         684
     Investment securities
          Held-to-maturity                        260         252         191
          Available-for-sale                   16,251      17,390      17,518
     Loans held for sale                        1,210         764       1,948
     Loans
          Commercial                           51,933      52,817      48,493
          Commercial real estate               26,376      26,443      25,779
          Residential mortgages                 7,433       7,753       9,143
          Retail                               33,907      35,352      31,400
     Total loans                              119,649     122,365     114,815
          Less allowance for credit losses      1,729       1,787       1,726
          Net loans                           117,920     120,578     113,089
     Premises and equipment                     1,787       1,836       1,867
     Customers' liability on acceptances          145         183         117
     Goodwill and other intangible assets       5,211       5,309       4,881
     Other assets                               8,904       8,724       8,029
           Total assets                      $160,274    $164,921    $155,981
 
     Liabilities and Shareholders' Equity
     Deposits
        Noninterest-bearing                   $24,797     $26,633     $24,676
        Interest-bearing                       67,686      68,177      67,506
        Time deposits greater than $100,000    12,359      14,725      10,257
           Total deposits                     104,842     109,535     102,439
     Short-term borrowings                     11,665      11,833      12,631
     Long-term debt                            21,725      21,876      21,440
     Company-obligated mandatorily
      redeemable preferred securities of
      subsidiary trusts holding solely the
      junior subordinated debentures of the
      parent company                            1,400       1,400       1,400
     Acceptances outstanding                      145         183         117
     Other liabilities                          5,254       4,926       3,940
           Total liabilities                  145,031     149,753     141,967
     Shareholders' equity
        Common stock                               19          19          19
        Capital surplus                         3,500       4,276       4,294
        Retained earnings                      11,711      11,658      10,418
        Treasury stock                            (38)       (880)       (483)
        Other comprehensive income                 51          95        (234)
           Total shareholders' equity          15,243      15,168      14,014
           Total liabilities and
            shareholders' equity             $160,274    $164,921    $155,981
 
 

SOURCE U.S. Bancorp
    MINNEAPOLIS, April 17 /PRNewswire/ -- U.S. Bancorp (NYSE:   USB) today
 reported operating earnings of $797.3 million for the first quarter of 2001,
 compared with $729.8 million for the first quarter of 2000.  Operating
 earnings of $.42 per diluted share in the first quarter of 2001 were $.04, or
 10.5 percent, higher than the same period of 2000.  Operating earnings on a
 cash basis increased to $.48 per diluted share in the first quarter of 2001
 from $.43 in the first quarter of 2000.  Return on average common equity and
 return on average assets, excluding merger and restructuring-related charges,
 were 20.9 percent and 1.98 percent, respectively, in the first quarter of
 2001, compared with returns of 20.8 percent and 1.90 percent in the first
 quarter of 2000.
     U.S. Bancorp (the "Company") is the organization created by the merger of
 Firstar Corporation  ("FSR") of Milwaukee, Wis. and the former U.S. Bancorp
 ("USB") of Minneapolis, Minn.  The merger was completed on February 27, 2001,
 as a pooling-of-interests, and prior periods have been restated.  The
 Company's operating earnings of $.42 per diluted share represent a 20.0
 percent increase over Firstar's first quarter of 2000 operating earnings, as
 originally reported, of $.35 per diluted share.  The Company's operating
 earnings of $.42 per diluted share were $.01 higher than Firstar's fourth
 quarter of 2000 earnings of $.41, as originally reported.
     Including after-tax merger and restructuring-related charges of
 $387.2 million in the first quarter of 2001 and $43.0 million in the first
 quarter of 2000, the Company recorded net income for the first quarter of 2001
 of $410.1 million, or $.21 per diluted share, compared with $686.8 million, or
 $.36 per diluted share, for the same period of 2000.
     U.S. Bancorp President and Chief Executive Officer Jerry A. Grundhofer
 said, "I am pleased with the first quarter results of the new U.S. Bancorp.  I
 am proud of what our employees have accomplished in a very short period of
 time -- employees who now have the opportunity to share in the success and
 growth of our new Company through the broad-based stock option grant that we
 announced in March.  We have kept the proper focus on our customers, as
 evidenced by solid first quarter earnings despite a more difficult economic
 environment, and we have made significant progress on the integration of our
 two companies, the former Firstar and the former U.S. Bancorp.  All
 significant decisions related to technology and operations have been finalized
 and scheduled for implementation in 2001 or the first half of 2002.
 Opportunities to improve performance through the introduction of new business
 models, products and services into both franchises have been identified and
 are beginning to be rolled-out.  In March, former Firstar's retail banking
 model was introduced into the west markets, and the strong corporate payment
 services product set of the former U.S. Bancorp was introduced into the east
 markets.  I am very excited about the future of this company.  By bringing
 these two great companies together under one powerful brand, along with our
 nationally recognized Five Star Service Guarantee, we have created an
 organization that will bring better solutions and greater convenience to our
 customers, provide growth opportunities for our employees, value to our
 shareholders and a strong commitment to the communities we serve.  We have the
 employees, the markets, the products, the financial strength and the brand to
 build the best bank in America."
 
 
     SIGNIFICANT ITEMS -- SECURITIES GAINS AND UNUSUAL LOSSES    Table 2
     ($ in millions)
                                                                 1Q 2001
     Unusual or nonrecurring gains
       Investment securities sales                               $200.0
       Sale of principal-only residuals                             7.7
       Other securities gains                                       8.3
          Total unusual or nonrecurring gains                    $216.0
 
     Unusual or nonrecurring losses
       Credit portfolio charges                                  $160.0
       Partnerships and equity investment losses                   36.8
       Mortgage servicing rights impairment                        11.0
       Other                                                       11.6
          Total unusual or nonrecurring losses                   $219.4
 
     Operating earnings for the first quarter of 2001 included a number of
 significant unusual or nonrecurring income and expense items.  Total revenue
 on a taxable-equivalent basis for the first quarter of 2001 grew by
 $282.0 million, or 10.5 percent, over the first quarter of 2000, primarily due
 to $216.0 million of securities gains.  Excluding securities gains, capital
 markets revenues (primarily U.S. Bancorp Piper Jaffray and U.S. Bancorp Libra)
 and trust and asset management-related revenues, total revenue on a
 taxable-equivalent basis for the first quarter of 2001 grew by approximately
 $180 million, or 8.5%, over the same period of 2000.  Total noninterest
 expense, before merger and restructuring-related charges, increased over the
 first quarter of 2000 by $36.7 million, or 2.7 percent, primarily due to $59.4
 million of unusual or nonrecurring expense items.  Without these expense
 items, noninterest expense would have decreased in the first quarter of 2001
 by
 $22.7 million, or 1.7 percent, from the first quarter of 2000, primarily
 reflecting cost savings from recent acquisitions.  Provision for credit losses
 for the first quarter of 2001, excluding merger-related charges, increased by
 $182.6 million over the first quarter of 2000, primarily due to a
 $160.0 million charge to the provision for credit losses incurred in
 connection with an accelerated loan workout strategy.  The additional
 provision for credit losses was taken after an extensive review of the
 Company's commercial portfolio in light of recent declining economic
 conditions and company-specific trends.  In connection with this strategy, the
 Company has written down the carrying values of these loans to estimated
 secondary market prices or liquidation values and intends to aggressively
 pursue the disposition or restructuring of these loans in a relatively short
 period of time.  The net impact of the unusual or nonrecurring items was
 immaterial to the Company's operating earnings in the first quarter of 2001.
     Net charge-offs, excluding merger-related items totaling $90.0 million to
 conform risk management policies and effect certain portfolio restructurings,
 in the first quarter of 2001 were $387.1 million, compared with fourth quarter
 of 2000 net charge-offs of $229.5 million and first quarter of 2000 net
 charge-offs of $183.1 million.  Included in the first quarter of 2001
 charge-offs were $160.0 million of net charge-offs related to the Company's
 accelerated loan workout strategy.  In addition, $21.3 million of net
 charge-offs in the first quarter of 2001 were associated with a portfolio of
 high loan-to-value home equity loans and the indirect automobile portfolio of
 the former U.S. Bancorp.  These portfolios were sold at the end of the first
 quarter as part of the portfolio restructuring.  Excluding the $271.3 million
 in net charge-offs associated with the merger, the credit portfolio review and
 accelerated workout strategy and the sold portfolios, baseline net charge-offs
 in the first quarter of 2001 were $205.8 million (see table 9).  Net
 charge-offs, including merger-related and other risk management actions taken
 during the first quarter of 2001, were $477.1 million.  Nonperforming assets
 increased from $867.0 million at December 31, 2000, to $1,090.8 million at
 March 31, 2001.  Of the $223.8 million increase in nonperforming assets,
 $210.0 million was associated with merger-related actions and management's
 accelerated loan workout strategy.  The ratio of allowance for credit losses
 to nonperforming loans was 176 percent at March 31, 2001, compared with
 233 percent at December 31, 2000. (see tables 10 & 12)
 
 
     LINE OF BUSINESS FINANCIAL PERFORMANCE*
     ($ in millions)                                                  Table 3
                        Pre-tax Operating Income**    Percent Change  1Q 2001
     Business Line       1Q          4Q         1Q     1Q01/   1Q01/  Earnings
                        2001        2000       2000    4Q00    1Q00 Composition
 
 
     Wholesale Banking $514.1      $497.9      $455.5    3.3    12.9     32%
 
     Consumer Banking   603.6       609.7       551.8   (1.0)    9.4     38
 
     Private Client,
      Trust and Asset
      Management        151.1       163.4       154.3   (7.5)   (2.1)    10
 
     Payment Services   282.5       290.3       243.7   (2.7)    15.9    18
 
     Capital Markets     35.7        49.3        71.4  (27.6)  (50.0)     2
 
     Treasury and
      Corporate
      Support            (6.3)     (131.0)     (141.3)    nm      nm     --
 
     Consolidated
      Company        $1,580.7    $1,479.6    $1,335.4    6.8    18.4    100%
 
     *   preliminary data
     **  pre-tax income before merger and restructuring-related charges and
         provision for loan losses
 
     Line of Business
     Within the Company, financial performance is measured by major lines of
 business which include:  Wholesale Banking, Consumer Banking, Private Client,
 Trust and Asset Management, Payment Services, Capital Markets, and Treasury
 and Other Corporate Support.  The business line results are derived from the
 Company's profitability reporting systems.  Designations, assignments and
 allocations may change from time to time as product lines change or segments
 are realigned to better respond to our diverse customer base.  All results for
 2001 and 2000 have been restated to present consistent methodologies for all
 business lines.
     Wholesale Banking offers lending, depository, treasury management and
 other financial services to middle market, large corporate and public sector
 clients.  Wholesale Banking contributed $514.1 million of the Company's
 pre-tax operating income in the first quarter of 2001, a 12.9 percent increase
 over the same period of 2000 and a 3.3 percent increase over the fourth
 quarter of 2000.  Total revenue grew by 14.2 percent from the first quarter of
 2000 to the first quarter of 2001, the result of core loan and deposit growth,
 as well as acquisitions in the equipment finance division, and an increase in
 noninterest income (17.5 percent), particularly cash management-related fees.
 Offsetting the favorable variance in revenue was an increase in noninterest
 expense (20.6 percent).
     Consumer Banking delivers products and services to the broad consumer
 market and small businesses through banking offices, telemarketing, on-line
 service, direct mail and automated teller machines ("ATM").  It encompasses
 community banking, metropolitan banking, small business banking, consumer
 banking and investment sales.  Consumer Banking contributed $603.6 million of
 the Company's pre-tax operating income in the first quarter of 2001,
 a 9.4 percent increase over the same period of 2000 and a 1.0 percent decline
 from the fourth quarter of 2000.  Total revenue growth of 6.6 percent in the
 first quarter of 2001 over the same quarter of 2000 can be primarily
 attributed to an increase in retail deposit and cash management fees, the
 result of core account growth, the acquisition of 41 branches in Tennessee and
 the sale of additional fee-based products.  Mortgage banking revenue and
 investment products fees and commissions also contributed to the favorable
 variance.  Partially offsetting the increase in revenue was an increase in
 noninterest expense (3.2 percent), primarily related to the Tennessee branch
 acquisition.
     Private Client, Trust and Asset Management provides mutual fund processing
 services, trust, private banking and financial advisory services through four
 businesses, including:  the Private Client Group, Corporate Trust,
 Institutional Trust and Custody, and Mutual Fund Services, LLC.  The business
 segment also offers investment management services to several client segments
 including mutual funds, institutional customers, and private asset management.
 Private Client, Trust and Asset Management contributed $151.1 million of the
 Company's pre-tax operating income in the first quarter of 2001, a 2.1 percent
 decline from the same period of 2000 and a 7.5 percent decline from the fourth
 quarter of 2000.  Strong growth in net interest income (17.8 percent) in the
 first quarter of 2001 from the first quarter of 2000, the result of core loan
 and deposit growth, was offset by a decrease in noninterest income
 (3.2 percent) and an increase in noninterest expense (3.9 percent).
     Payment Services includes consumer and business credit cards, corporate
 and purchasing card services, consumer lines of credit, ATM processing and
 merchant processing.  Payment Services contributed $282.5 million of the
 Company's pre-tax operating income in the first quarter of 2001, a
 15.9 percent increase over the same period of 2000 and a 2.7 percent decrease
 from the fourth quarter of 2000.  Strong revenue growth of 11.7 percent,
 primarily due to growth in credit card and payment processing fees, was
 partially offset by an increase in noninterest expense (1.5 percent).
     Capital Markets engages in equity and fixed income trading activities,
 offers investment banking and underwriting services for corporate and public
 sector customers and provides financial advisory services and securities,
 mutual funds, annuities and insurance products to consumers and
 regionally-based businesses through a network of brokerage offices.  Capital
 Markets contributed $35.7 million of the Company's pre-tax operating income in
 the first quarter of 2001, a 50.0 percent decline from the first quarter of
 2000 and a 27.6 percent decline from the fourth quarter of 2000.  The
 unfavorable variances in pre-tax operating income from the first and fourth
 quarters of 2000 were due to significant decreases in fees related to trading,
 investment products fees and commissions and investment banking revenues.
     Treasury and Corporate Support includes the Company's investment and
 residential mortgage portfolios, funding, capital management and asset
 securitization activities, interest rate risk management, the net effect of
 transfer pricing related to loan and deposit balances, and the change in
 residual allocations associated with the provision for credit losses.  It also
 includes business activities managed on a corporate basis, including income
 and expense of enterprise-wide operations and administrative support
 functions.  Treasury and Corporate Support recorded a pre-tax operating loss
 of $6.3 million in the first quarter of 2001, compared to a loss of
 $141.3 million in the first quarter of 2000 and a loss of $131.0 million in
 the fourth quarter of 2000.  Included in this business segment in the first
 quarter of 2001 were approximately $208 million of securities gains partially
 offset by $36.8 million of unusual expense items.
 
 
     INCOME STATEMENT HIGHLIGHTS                                        Table 4
     (Taxable-equivalent basis, $ in millions,             Percent      Percent
      except per-share
      data)          1Q           4Q           1Q           Change      Change
                    2001         2000         2000        1Q01/4Q00   1Q01/1Q00
 
     Net interest
      income      $1,574.1     $1,562.5     $1,511.6          0.7         4.1
 
     Noninterest
      income       1,400.9      1,264.9      1,181.4         10.8        18.6
 
     Total revenue 2,975.0      2,827.4      2,693.0          5.2        10.5
 
     Noninterest
      expense*     1,394.3      1,347.8      1,357.6          3.5         2.7
 
     Operating
      income
      before
      merger and
      restructuring-
      related
      charges      1,580.7      1,479.6      1,335.4          6.8        18.4
 
     Provision for
      credit losses* 365.8        229.5        183.2         59.4        99.7
 
     Income before
      taxes, merger and
      restructuring-
      related
      charges      1,214.9      1,250.1      1,152.2         (2.8)        5.4
 
     Taxable-
      equivalent
      adjustment      18.5         21.0         22.0        (11.9)      (15.9)
 
     Income taxes*   399.1        404.9        400.4         (1.4)       (0.3)
 
     Income before
      merger and
      restructuring-
      related
      charges        797.3        824.2        729.8         (3.3)        9.2
 
     Merger and
      restructuring-
      related charges
      (after-tax)   (387.2)       (55.5)       (43.0)          nm          nm
 
     Net income     $410.1       $768.7       $686.8        (46.7)      (40.3)
 
 
     Per diluted
      common share:
       Earnings,
        before
        merger and
        restructuring-
        related
        charges      $0.42        $0.43        $0.38         (2.3)       10.5
 
     Earnings on a
      cash basis,
      before merger
      and
      restructuring-
      related
      charges**      $0.48        $0.49        $0.43         (2.0)       11.6
 
     Net income      $0.21        $0.40        $0.36        (47.5)      (41.7)
 
     Earnings on
      a cash
      basis**        $0.27        $0.46        $0.40        (41.3)      (32.5)
 
     *   before effect of merger and restructuring-related charges
 
     **  calculated by adding amortization of goodwill and other intangible
         assets to operating earnings and net income
 
     Net Interest Income
     First quarter net interest income on a taxable-equivalent basis was
 $1,574.1 million, compared with $1,511.6 million recorded in the first quarter
 of 2000.  Average earning assets for the period increased over the first
 quarter of 2000 by $7.3 billion, or 5.3 percent, primarily driven by core
 commercial and retail loan growth of $9.3 billion and the impact of
 acquisitions, offset by a $3.7 billion decline in lower margin residential
 mortgages.  The net interest margin was essentially flat in the first quarter
 of 2001 at 4.41 percent, compared with 4.44 percent in the first quarter of
 2000.  The 8 basis point improvement in the net interest margin in the first
 quarter of 2001 from the fourth quarter of 2000 reflects the benefit of the
 declining rate environment and product re-pricing dynamics.
 
 
     AVERAGE LOANS                                                     Table 5
     ($ in millions)                                       Percent     Percent
                     1Q           4Q           1Q          Change      Change
                    2001         2000         2000        1Q01/4Q00  1Q01/1Q00
 
     Commercial    $46,805      $46,886      $43,055         (0.2)        8.7
     Lease financing 5,768        5,603        3,826          2.9        50.8
        Total
         commercial 52,573       52,489       46,881          0.2        12.1
 
     Commercial
      mortgages     19,305       19,368       18,753         (0.3)        2.9
     Construction
      and
      development    7,151        7,126        6,633          0.4         7.8
        Total
         commercial
         real
         estate     26,456       26,494       25,386         (0.1)        4.2
 
     Residential
      mortgages      7,618        8,840       11,342        (13.8)      (32.8)
 
     Credit card     5,655        5,216        4,744          8.4        19.2
     Retail leasing  4,291        3,957        2,328          8.4        84.3
     Other retail   25,176       25,185       23,872           --         5.5
        Total
         retail     35,122       34,358       30,944          2.2        13.5
 
     Total loans  $121,769     $122,181     $114,553         (0.3)        6.3
 
     Total loans,
      excl.
      residential
      mortgages   $114,151     $113,341     $103,211          0.7        10.6
 
     Note:  Average loan balances in the Company's loan conduit, Stellar
            Funding Group, Inc., totaled $3,276 million, $2,988 million and
            $2,480 in 1Q01, 4Q00 and 1Q00, respectively
 
     Excluding residential mortgage loans, average loans for the first quarter
 were higher by $10.9 billion, or 10.6 percent, than the first quarter of 2000,
 reflecting both core loan growth and acquisitions.  In addition, $2.2 billion
 of short term, high quality, low yielding commercial loans were funded in the
 loan conduit, Stellar Funding Group, Inc. in the first quarter of 2001.  Total
 average loans for the first quarter, excluding residential mortgage loans, but
 including loans funded in the loan conduit, grew by $11.7 billion, or
 11.1 percent, over the first quarter of 2000.
     Excluding residential mortgage loans, average loans for the first quarter
 of 2001 remained essentially flat to the fourth quarter 2000.  Total average
 loans, excluding residential mortgage loans, but including loans funded in the
 loan conduit, grew by $1.1 billion, or .9 percent, in the first quarter of
 2001 over the fourth quarter of 2000.  Total loans, excluding residential
 mortgage loans, at March 31, 2001, were $2.4 billion lower than at
 December 31, 2000, reflecting the $1.3 billion sale of a portfolio of high
 loan-to-value home equity loans and the indirect automobile portfolio held by
 the former U.S. Bancorp, in addition to the transfer of $2.2 billion of
 commercial loans into the loan conduit.
     Investment securities at March 31, 2001, were $1.2 billion less than at
 March 31, 2000, and $1.1 billion less than at December 31, 2000, primarily
 reflecting net sales of securities.  During the first quarter of 2001, the
 Company sold $8.7 billion of investment securities and purchased $6.5 billion
 of investment securities.
     Average noninterest-bearing deposits in the first quarter of 2001 were
 slightly lower than the first quarter of 2000.  Average interest-bearing
 deposits, however, grew by $3.1 billion, or 4.0 percent, over the first
 quarter of 2000, reflecting bank acquisitions, growth in core money market
 deposits and increases in time deposits greater than $100,000.
 
 
     NONINTEREST INCOME                                                Table 6
     ($ in millions)                                        Percent    Percent
                    1Q           4Q            1Q           Change     Change
                   2001         2000          2000         1Q01/4Q00  1Q01/1Q00
 
     Credit card and
      payment
      processing
      revenue      $249.7       $264.7        $218.9         (5.7)       14.1
 
     Trust and
      investment
      management
      fees          225.0        233.8         230.9         (3.8)       (2.6)
 
     Deposit
      service
      charges       146.5        145.4         123.4          0.8        18.7
 
     Investment
      products
      fees and
      commissions   125.7        108.9         140.8         15.4       (10.7)
 
     Cash
      management
      fees           76.8         71.8          71.8          7.0         7.0
 
     Commercial
      product
      revenue        76.1         85.2          61.6        (10.7)       23.5
 
     Trading account
      profits and
      commissions    71.9         62.4          85.3         15.2       (15.7)
 
     Investment
      banking
      revenue        60.2         92.8          94.0        (35.1)      (36.0)
 
     Mortgage
      banking
      revenue        48.2         54.4          42.7        (11.4)       12.9
 
     Securities
      gains
      (losses),
      net           216.0          7.0          (0.3)          nm          nm
 
     Other          104.8        138.5         112.3        (24.3)       (6.7)
 
 
     Total
      noninterest
      income     $1,400.9     $1,264.9      $1,181.4         10.8        18.6
 
     Noninterest Income
     First quarter noninterest income was $1,400.9 million, an increase of
 $219.5 million, or 18.6 percent, from the same quarter of 2000, and a
 $136.0 million, or 10.8 percent, increase from the fourth quarter of 2000.
 Excluding the impact of securities gains, noninterest income in the first
 quarter of 2001 would have been essentially flat to the first quarter of 2000,
 and $73.0 million, or 5.8 percent, lower than the fourth quarter of 2000.
 Credit card and payment processing revenue was higher in the first quarter of
 2001 over the same period of 2000 by $30.8 million, or 14.1 percent,
 reflecting continued growth in corporate, merchant and retail card product
 fees.  Deposit service charges, cash management fees, commercial product
 revenue, and mortgage banking revenue also improved in the first quarter of
 2001 over the first quarter of 2000 by $23.1 million (18.7 percent),
 $5.0 million (7.0 percent), $14.5 million (23.5 percent), and $5.5 million
 (12.9 percent), respectively.  The increases in deposit service charges, cash
 management fees and commercial product revenue were primarily driven by growth
 in core business and product fee enhancements during 2000.  The increase in
 mortgage banking revenue in the first quarter of 2001 over the first quarter
 of 2000 was due to an increase in origination fees, partially offset by a
 decrease in gains on the sale of servicing rights.  Offsetting the growth in
 these items year over year was a reduction in capital markets (primarily U.S.
 Bancorp Piper Jaffray and U.S. Bancorp Libra) and trust and asset management-
 related revenues, which declined by approximately
 $100 million from the first quarter of 2000, reflecting adverse equity capital
 market conditions and declining asset values.  Excluding the impact of
 securities gains and these market-driven revenues, first quarter of 2001
 noninterest income would have increased by approximately $114 million, or
 18.2 percent.
     Excluding securities gains, noninterest income declined in the first
 quarter of 2001 from the fourth quarter of 2000.  Credit card and payment
 processing revenue decreased by $15.0 million, reflecting seasonal spending
 patterns.  Mortgage banking revenue declined by $6.2 million, the result of
 lower gains on the sale of servicing rights, partially offset by growth in
 mortgage loan originations and servicing income.  Given the current interest
 rate environment, the Company expects continued growth in revenue from
 mortgage loan originations in the second quarter.  Approximately $45 million
 of the reduction in noninterest income in the first quarter of 2001 from the
 fourth quarter of 2000 was due to the decline in capital markets and trust and
 asset management-related revenue.
 
 
     NONINTEREST EXPENSE                                               Table 7
     ($ in millions)                                        Percent    Percent
                      1Q           4Q           1Q           Change     Change
                     2001         2000         2000        1Q01/4Q00  1Q01/1Q00
 
     Salaries       $590.5       $593.7       $629.6         (0.5)       (6.2)
 
     Employee
      benefits       108.1         98.2        111.9         10.1        (3.4)
 
     Net occupancy   110.1        104.2         97.2          5.7        13.3
 
     Furniture and
      equipment       76.9         76.2         76.7          0.9         0.3
 
     Postage          46.9         44.2         44.6          6.1         5.2
 
     Goodwill         70.5         64.2         58.4          9.8        20.7
 
     Other intangible
      assets          43.9         37.8         37.4         16.1        17.4
 
     Other           347.4        329.3        301.8          5.5        15.1
 
       Subtotal    1,394.3      1,347.8      1,357.6          3.5         2.7
 
 
     Merger and
      restructuring
      -related
      charges        404.2         84.1         65.0
 
 
     Total
      noninterest
      expense     $1,798.5     $1,431.9     $1,422.6
 
     Noninterest Expense
     First quarter noninterest expense, before merger and restructuring-related
 charges, totaled $1,394.3 million, an increase of $36.7 million, or
 2.7 percent, from the first quarter of 2000.  The increase in noninterest
 expense was primarily the result of unusual or nonrecurring expense items
 totaling $59.4 million, offset by net cost savings from acquisitions and a
 decline of approximately $56 million in expenses associated with the slow-down
 in capital market-related activities.  Excluding the $59.4 million of unusual
 or nonrecurring expense items, before merger and restructuring-related
 charges, noninterest expense would have decreased in the first quarter of 2001
 by $22.7 million, or 1.7 percent, from the first quarter of 2000.
     First quarter of 2001 noninterest expense, before merger and
 restructuring-related charges, was higher than the fourth quarter of 2000 by
 $46.5 million, or 3.5 percent, primarily due to the $59.4 million of unusual
 or nonrecurring expense items.  Excluding unusual or nonrecurring expense
 items, before merger and restructuring-related charges, noninterest expense in
 the first quarter of 2001 would have declined by $12.9 million from the fourth
 quarter of 2000, primarily due to the reduction in capital-market related
 activities, partially offset by seasonally higher employee benefits and
 increases in net occupancy of $5.9 million (5.7 percent), goodwill expense of
 $6.3 million (9.8 percent) and other intangible expense of $6.1 million
 (16.1 percent).  The increase in net occupancy, goodwill and other intangible
 expense was primarily due to the purchase of 41 branches in Tennessee on
 December 8, 2000, by the former Firstar.
 
 
     SIGNIFICANT ITEMS -- MERGER AND RESTRUCTURING                   Table 8
     ($ in millions)
                                      Estimated Timing                Actual
     Summary of Charges       Plan          2001         2002         1Q 2001
 
     Firstar/U.S. Bancorp
 
       Severance and
        employee-related
        costs                $187.4        $194.9        ($7.5)       $123.6
 
       Building and
        equipment             103.5          61.6         41.9          23.6
 
       Investment banking
        and transaction
        costs                  58.5          58.5           --          60.6
 
       Charitable foundation   76.0          76.0           --          76.0
 
       Restructurings         178.1         178.1           --         181.6
 
       Branch sale            (64.0)        (64.0)          --            --
 
       Other, net             103.8          65.3         38.5          38.5
 
         Subtotal             643.3         570.4         72.9         503.9
 
       Conversion and
        integration           326.7         195.6        131.1          19.2
 
          Total Firstar/
           U.S. Bancorp*      970.0         766.0        204.0         523.1
 
     U.S. Bancorp Piper
      Jaffray restructuring    26.0          26.0           --          22.6
 
     Other acquisitions, net   75.0          55.0         20.0          25.1
 
          Total merger and
           restructuring   $1,071.0        $847.0       $224.0        $570.8
 
     *  originally estimated to be $800 million
 
     Earnings in the first quarter of 2001 included merger and
 restructuring-related charges of $570.8 million.  Total merger and
 restructuring-related charges included $356.5 million of merger-related
 noninterest expense and $166.6 million in provision for credit losses
 associated with the Firstar/U.S. Bancorp merger, $22.6 million of
 restructuring expense for U.S. Bancorp Piper Jaffray and $25.1 million of
 noninterest expense for other recent acquisitions, including Mercantile, the
 Tennessee branch purchase and Scripps Financial.
     The $356.5 million of merger-related noninterest expense associated with
 the Firstar/U.S. Bancorp merger included $123.6 million of severance and
 employee-related costs, $23.6 million of building and equipment costs,
 $60.6 million of investment banking and transaction costs, $76.0 million of
 contributions to charitable foundations, $15.0 million of non-credit related
 restructurings, $38.5 million for asset impairments and other costs and
 $19.2 million of conversion and integration expense.  In addition, the Company
 recorded $166.6 million of merger-related provision for credit losses, which
 included $90.0 million of charge-offs taken on credits with pre-charge off
 commitments totaling $350 million.  These charge-offs were taken to align risk
 management practices for larger commercial credits, align charge-off policies
 and to expedite the Company's transition out of a segment of the health care
 industry.  The write-down of several large commercial loans, loans originally
 held separately by both Firstar and the former U.S. Bancorp, was primarily
 taken to allow the Company to exit or reduce these credits to conform with the
 credit exposure policy of the combined entity.  An additional $76.6 million of
 provision for credit losses was included in the merger-related provision for
 credit losses to account for the sale of a portfolio of high loan-to-value
 home equity loans and the indirect automobile loan portfolio of the former
 U.S. Bancorp.  The balance of these portfolios totaled approximately
 $1.3 billion.
 
 
     SIGNIFICANT ITEMS -- CREDIT INITIATIVES                       Table 9
     ($ in millions)                                      Provision
                             Net Charge-offs        Operating       "GAAP"
                              and Loan Sales          Basis*         Basis
 
     Summary of net charge-offs
 
      Merger-related items             $90.0                         $90.0
 
      Charge-offs related to
       consumer loans sold              21.3
 
      Accelerated commercial
       workout strategy                160.0          $160.0         160.0
 
      Baseline charge-offs             205.8           205.8         205.8
                                       477.1           365.8         455.8
 
 
      Losses from consumer loans sold  113.6                          76.6
 
       Total                          $590.7          $365.8        $532.4
 
     *  excluding merger-related charges
 
     In response to significant changes in the securities markets during the
 past six months, including increased volatility, changes in equity valuations,
 a slow down in the market for new and secondary issuances of equity, and the
 increasingly competitive environment for the industry, U.S. Bancorp Piper
 Jaffray is restructuring its operations.  The restructuring is expected to
 improve the operating efficiency of the individual businesses by removing
 excess capacity from the product distribution system and by implementing new,
 more effective operating models.  Of the $26.0 million of total restructuring
 expense to be incurred in 2001, $22.6 million was expensed in the first
 quarter of 2001.
     Total merger-related expenses associated with the merger of the former
 Firstar and the former U.S. Bancorp are expected to be $970 million, exceeding
 the original estimate of $800 million by $170 million.  The majority of the
 increase is due to risk management policy conformance and the restructuring of
 the credit portfolio, which were not anticipated at the time the merger was
 announced.  This credit portfolio restructuring, however, is expected to
 enhance the overall credit risk profile of the Company.  In addition, cost
 savings associated with the merger of Firstar and the former U.S. Bancorp are
 also expected to be higher than the original estimate of $266 million.  The
 Company now anticipates that cost savings from the merger will be
 approximately $325 million, with an accelerated phase-in of the cost savings
 in 2001.  Along with the additional cost savings, the Company has identified
 revenue enhancements that were not originally included in the transaction
 economics.
 
 
     ALLOWANCE FOR CREDIT LOSSES                                      Table 10
     ($ in millions)      1Q2001           4Q        3Q        2Q        1Q
                "Normalized*"  Actual     2000      2000      2000      2000
 
 
     Balance, beginning of
      period        $1,786.9  $1,786.9  $1,776.6  $1,757.0  $1,726.1  $1,710.3
 
     Net charge-offs
      Commercial        53.9     270.3      69.0      68.9      68.5      49.4
      Lease financing    6.4      19.6       7.2       4.8       5.6       3.1
        Total
         commercial     60.3     289.9      76.2      73.7      74.1      52.5
      Commercial
       mortgages         3.1      28.5       6.8       0.7      (2.7)      0.2
      Construction and
       development       0.8       0.8       3.9       5.8      (1.6)     (0.4)
        Total commercial
         real estate     3.9      29.3      10.7       6.5      (4.3)     (0.2)
      Residential
       mortgages         3.2       3.2       3.0       2.3       2.3       4.8
      Credit card       57.8      57.8      54.4      52.4      52.8      48.7
      Retail leasing     6.2       6.2       4.6       3.7       2.6       1.9
      Other retail      95.7      90.7      80.6      75.3      71.4      75.4
        Total retail   159.7     154.7     139.6     131.4     126.8     126.0
         Total net
          charge-offs  227.1     477.1     229.5     213.9     198.9     183.1
 
     Provision for
      credit losses    282.4     532.4     229.5     214.0     201.3     183.2
     Losses from
      consumer loan
      sales           (113.6)   (113.6)       --        --        --        --
     Acquisitions and
      other changes      0.5       0.5      10.3      19.5      28.5      15.7
 
     Balance, end of
      period        $1,729.1  $1,729.1  $1,786.9  $1,776.6  $1,757.0  $1,726.1
 
     Net charge-offs
      to average
      loans (%)         0.76      1.59      0.75      0.71      0.68      0.64
 
     Allowance for
      credit losses to
      period-end
      loans (%)         1.45      1.45      1.46      1.46      1.48      1.50
 
     *  categories adjusted for merger-related ($90.0 million) and portfolio
        restructuring-related ($160.0 million) net-charge-offs
 
     Credit Quality
     The allowance for credit losses was $1,729.1 million at March 31, 2001,
 lower than the allowance for credit losses of $1,786.9 million at December 31,
 2000, principally due to reductions related to the sale of a portfolio of high
 loan-to-value home equity loans and indirect automobile loans.  The ratio of
 allowance for credit losses to nonperforming loans was 176 percent at
 March 31, 2001, down from the ratio of 233 percent at December 31, 2000.  The
 ratio of allowance for credit losses to period-end loans was 1.45 percent at
 March 31, 2001, compared with the ratio of 1.46 percent at December 31, 2000.
     Total net charge-offs, before merger-related items, in the first quarter
 of 2001 were $387.1 million, compared with the fourth quarter of 2000 net
 charge-offs of $229.5 million and the first quarter of 2000 net charge-offs of
 $183.1 million.  Total net charge-offs, before merger-related items, included
 $160.0 million of charge-offs taken on credits with pre-charge off commitments
 totaling $480 million related to the Company's accelerated loan workout
 strategy.  Total retail loan net charge-offs of $154.7 million were higher
 than the same period of 2000 by $28.7 million, or 22.8 percent, and
 $15.1 million, or 10.8 percent, more than the fourth quarter of 2000.
 Included in the first quarter of 2001 retail loan charge-offs were
 $21.3 million of charge-offs associated with portfolios sold at the end of the
 quarter.  Retail loan net charge-offs as a percent of average loans
 outstanding were 1.79 percent in the first quarter of 2001, compared with
 1.62 percent and 1.64 percent in the fourth quarter of 2000 and first quarter
 of 2000, respectively.  Excluding the net charge-offs related to the sold
 portfolios, retail loan net charge-offs as a percent of average loans
 outstanding would have been 1.60 percent.
     Commercial and commercial real estate loan net charge-offs were
 $319.2 million for the first quarter of 2001, or 1.64 percent of average loans
 outstanding, compared with $86.9 million, or .44 percent, in the fourth
 quarter of 2000 and $52.3 million, or .29 percent, of average loans
 outstanding, in the first quarter of 2000.   Commercial and commercial real
 estate loan net charge-offs in the first quarter of 2001 included
 $255.0 million in merger-related charge-offs and charge-offs associated with
 the Company's accelerated loan workout strategy.  Excluding net charge-offs
 associated with the merger and accelerated workout strategy, commercial and
 commercial real estate loan net charge-offs were .33 percent of average loans
 outstanding.  The Company expects total net charge-offs in the second quarter
 of 2001 to increase modestly from the "normalized" net charge-offs reported in
 the first quarter of 2001 (see table 10).
 
 
     CREDIT RATIOS                                                    Table 11
                     Mar 31       Dec 31       Sep 30       Jun 30      Mar 31
                      2001         2000         2000         2000        2000
     Net charge-offs ratios*
      Commercial      2.34         0.59         0.59         0.60        0.46
      Lease financing 1.38         0.51         0.43         0.54        0.33
       Total
        commercial    2.24         0.58         0.57         0.60        0.45
 
      Commercial real
       estate         0.45         0.16         0.10        (0.07)         --
 
      Residential
       mortgages      0.17         0.14         0.10         0.10        0.17
 
      Credit card     4.15         4.15         4.16         4.36        4.13
      Retail leasing  0.59         0.46         0.43         0.37        0.33
      Other retail    1.46         1.27         1.22         1.18        1.27
       Total retail   1.79         1.62         1.58         1.59        1.64
 
     Total net
      charge-offs     1.59         0.75         0.71         0.68        0.64
 
     Delinquent loan
      ratios**
       Commercial
        past due
        90+ days      1.22         0.95         0.84         0.78        0.68
       Consumer
        past due
        90+ days      1.01         0.92         0.79         0.74        0.79
 
     *   annualized and calculated on average loan balances
 
     **  ratios include nonperforming loans and are expressed as a percent of
         ending loan balances
 
 
     ASSET QUALITY                                                    Table 12
     ($ in millions)
                    Mar 31       Dec 31       Sep 30       Jun 30      Mar 31
                     2001         2000         2000         2000        2000
     Nonperforming
      loans
 
      Commercial    $631.9       $470.4       $383.8       $325.3      $266.1
 
      Lease
       financing     103.8         70.5         57.5         53.5        33.0
 
        Total
         commercial  735.7        540.9        441.3        378.8       299.1
 
      Commercial
       mortgages      98.5        105.5        107.6        103.4       114.9
 
      Construction
       and
       development    57.8         38.2         34.8         24.1        32.9
 
        Total
         commercial
         real estate 156.3        143.7        142.4        127.5       147.8
 
      Residential
       mortgages      64.8         56.9         60.7         63.5        74.2
 
      Retail          25.1         23.8         22.0         26.3        27.2
 
     Total
      nonperforming
      loans          981.9        765.3        666.4        596.1       548.3
 
 
     Other real
      estate          55.0         61.1         42.6         42.0        43.7
 
     Other
      nonperforming
      assets          53.9         40.6         30.4         30.1        30.4
 
 
     Total
      nonperforming
      assets*     $1,090.8       $867.0       $739.4       $668.2      $622.4
 
 
     Accruing loans
      90 days past
      due           $390.7       $385.2       $329.1       $319.7      $274.6
 
 
     Allowance to
      nonperforming
      loans (%)        176          233          267          295         315
 
     Allowance to
      nonperforming
      assets (%)       159          206          240          263         277
 
     Nonperforming
      assets to loans
      plus ORE (%)    0.91         0.71         0.61         0.56        0.54
 
     *  does not include accruing loans 90 days past due
 
     Nonperforming assets at March 31, 2001, totaled $1,090.8 million, compared
 with $867.0 million at December 31, 2000, and $622.4 million at March 31,
 2000.  $210.0 million of the increase in nonperforming assets from
 December 31, 2000, to March 31, 2001, was due to the merger-related and risk
 management actions taken during the quarter, as credits were reduced to
 secondary market value and placed on nonperforming status.  The ratio of
 nonperforming assets to loans and other real estate was .91 percent at
 March 31, 2001, compared with .71 percent at December 31, 2000, and
 .54 percent at March 31, 2000.  Although the Company has credit and non-credit
 relationships with companies in the energy industry, the Company does not have
 direct credit exposure to troubled California utilities.  The Company expects
 nonperforming loans to decline modestly from the March 31, 2001 totals through
 the remainder of 2001.
 
 
     CAPITAL POSITION                                                Table 13
     ($ in
      millions)    Mar 31       Dec 31       Sep 30       Jun 30      Mar 31
                    2001         2000         2000         2000        2000
 
     Total shareholders'
      equity       $15,243      $15,168      $14,334      $14,137     $14,014
     Tier 1 capital 11,831       11,602       11,179       11,125      11,042
     Total
      risk-based
      capital       17,135       17,038       16,740       16,718      16,430
 
     Common equity
      to assets       9.5%          9.2%         8.9%         8.8%        9.0%
     Tangible
      common equity
      to assets*      7.2           6.8          6.6          6.5         6.7
     Tier 1 capital
      ratio           7.4           7.2          7.1          7.2         7.2
     Total risk-based
      capital ratio  10.7          10.6         10.6         10.8        10.8
     Leverage ratio   7.5           7.4          7.2          7.2         7.4
 
     *  calculated by deducting goodwill from shareholders' equity and assets
 
     Total shareholder's equity was $15.2 billion at March 31, 2001, an
 increase of $1.2 billion from the $14.0 billion reported at March 31, 2000.
 The increase was the result of strong corporate earnings, including
 merger-related charges, offset by dividend payments and share buybacks in the
 second and third quarters of 2000.
     Tangible common equity to assets was 7.2 percent at March 31, 2001,
 compared with 6.8 percent at December 31, 2000, and 6.7 percent at March 31,
 2000.  The Tier 1 capital ratio was 7.4 percent at March 31, 2001, compared
 with 7.2 percent at December 31, 2000, and at March 31, 2000.  The total
 risk-based capital ratio was 10.7 percent at March 31, 2001, compared with
 10.6 percent at December 31, 2000, and 10.8 percent at March 31, 2000, and the
 leverage ratio was 7.5 percent at March 31, 2001, compared with 7.4 percent at
 December 31, 2000, and at March 31, 2000.  All regulatory ratios continue to
 be in excess of stated "well capitalized" requirements.
 
 
     COMMON SHARES                                                   Table 14
     (Millions)      1Q           4Q           3Q           2Q          1Q
                    2001         2000         2000         2000        2000
 
     Beginning shares
      outstanding  1,902.1      1,890.3      1,905.5      1,917.5     1,928.5
 
 
     Shares issued
      for stock
      option and
      stock
      purchase
      plans,
      acquisitions
      and other
      corporate
      purposes         3.2         11.8          1.9          8.2        10.3
 
     Shares
      repurchased       --           --        (17.1)       (20.2)      (21.3)
 
     Ending shares
      outstanding  1,905.3      1,902.1      1,890.3      1,905.5     1,917.5
 
     The stock repurchase programs of Firstar and the former U.S. Bancorp were
 rescinded on October 4, 2000, and January 17, 2001, respectively, in
 connection with the planned merger of the two companies.
     Minneapolis-based U.S. Bancorp ("USB"), with $160 billion in assets, is
 the 8th largest financial services holding company in the United States.  The
 company operates 2,242 banking offices and 5,208 ATMs, and provides a
 comprehensive line of banking, brokerage, insurance, investment, mortgage, and
 trust payment services products to consumers, businesses and institutions.
 U.S. Bancorp is the parent company of Firstar Banks and U.S. Bank.  Visit U.S.
 Bancorp on the web at http://www.usbank.com and Firstar Bank at
 http://www.firstar.com
 
     A RECORDED REVIEW OF THE FINANCIAL RESULTS BY VICE CHAIRMAN AND CHIEF
 FINANCIAL OFFICER DAVID M. MOFFETT WILL BE AVAILABLE BY TELEPHONE OR ON THE
 INTERNET.  The recorded message will be available from 10:30 A.M. on Tuesday,
 April 17, 2001 through 12:00 midnight on Monday, April 23, 2001.  To access
 the recorded message dial 800-642-1687 and enter ID number 434143.  If calling
 from outside the United States, please dial 706-645-9291 and enter the ID
 number.
 
     Forward-Looking Statements
     This press release contains forward-looking statements.  Statements that
 are not historical or current facts, including statements about beliefs and
 expectations, are forward-looking statements.  These forward-looking
 statements cover, among other things, projected earnings growth, anticipated
 future expenses and revenues, and the future prospects of the Company.
 Forward-looking statements involve inherent risks and uncertainties, and
 important factors could cause actual results to differ materially from those
 anticipated, including the following, in addition to those contained in the
 Company's reports on file with the SEC:  (i) general economic or industry
 conditions could be less favorable than expected, resulting in a deterioration
 in credit quality, a change in the allowance for credit losses, or a reduced
 demand for credit or fee-based products and services; (ii) changes in the
 domestic interest rate environment could reduce net interest income and could
 increase credit losses; (iii) the conditions of the securities markets could
 change, adversely affecting revenues from capital markets businesses, the
 value or credit quality of the Company's on-balance sheet and off-balance
 sheet assets, or the availability and terms of funding necessary to meet the
 Company's liquidity needs; (iv) changes in the extensive laws, regulations and
 policies governing financial services companies could alter the Company's
 business environment or affect operations; (v) the potential need to adapt to
 industry changes in information technology systems, on which the Company is
 highly dependent, could present operational issues or require significant
 capital spending; (vi) competitive pressures could intensify and affect the
 Company's profitability, including as a result of continued industry
 consolidation, the increased availability of financial services from
 non-banks, technological developments such as the Internet, or bank regulatory
 reform; and (vii) acquisitions may not produce revenue enhancements or cost
 savings at levels or within time frames originally anticipated, or may result
 in unforeseen integration difficulties.  Forward-looking statements speak only
 as of the date they are made, and the Company undertakes no obligation to
 update them in light of new information or future events.
 
 
     U.S. Bancorp
     CONSOLIDATED STATEMENT OF INCOME
 
     (Dollars in Millions, Except Per               Three Months Ended
     Share Data)                             March 31,  December 31, March 31,
     (Unaudited)                               2001        2000        2000
     Interest Income
     Loans                                   $2,660.9    $2,787.9    $2,472.1
     Loans held for sale                         16.6        22.2        12.0
     Investment securities
          Taxable                               253.3       251.3       251.0
          Non-taxable                            31.2        33.4        38.9
     Money market investments                     8.9        10.8        13.6
     Trading securities                          15.9        14.0        14.3
     Other interest income                       32.0        39.4        37.3
               Total interest income          3,018.8     3,159.0     2,839.2
 
     Interest Expense
     Deposits                                   883.7       975.7       813.2
     Short-term borrowings                      219.1       220.7       171.1
     Long-term debt                             332.8       398.3       336.9
     Company-obligated mandatorily
      redeemable preferred securities of
      subsidiary trusts holding solely the
      junior subordinated debentures of the
      parent company                             27.6        22.8        28.4
               Total interest expense         1,463.2     1,617.5     1,349.6
     Net interest income                      1,555.6     1,541.5     1,489.6
     Provision for credit losses                532.4       229.5       183.2
     Net interest income after provision
      for credit losses                       1,023.2     1,312.0     1,306.4
 
     Noninterest Income
     Credit card and payment processing
      revenue                                   249.7       264.7       218.9
     Trust and investment management fees       225.0       233.8       230.9
     Deposit service charges                    146.5       145.4       123.4
     Investment products fees and
      commissions                               125.7       108.9       140.8
     Cash management fees                        76.8        71.8        71.8
     Commercial product revenue                  76.1        85.2        61.6
     Trading account profits and
      commissions                                71.9        62.4        85.3
     Investment banking revenue                  60.2        92.8        94.0
     Mortgage banking revenue                    48.2        54.4        42.7
     Securities gains (losses), net             216.0         7.0         (.3)
     Other                                      104.8       138.5       112.3
               Total noninterest income       1,400.9     1,264.9     1,181.4
 
     Noninterest Expense
     Salaries                                   590.5       593.7       629.6
     Employee benefits                          108.1        98.2       111.9
     Net occupancy                              110.1       104.2        97.2
     Furniture and equipment                     76.9        76.2        76.7
     Postage                                     46.9        44.2        44.6
     Goodwill                                    70.5        64.2        58.4
     Other intangible assets                     43.9        37.8        37.4
     Merger and restructuring-related
      charges                                   404.2        84.1        65.0
     Other                                      347.4       329.3       301.8
               Total noninterest expense      1,798.5     1,431.9     1,422.6
 
     Income before income taxes                 625.6     1,145.0     1,065.2
     Applicable income taxes                    215.5       376.3       378.4
     Net income                                $410.1      $768.7      $686.8
 
     Earnings Per Common Share
     Average shares outstanding  (in
      millions)                               1,901.1     1,895.7     1,921.7
     Earnings per share                          $.22        $.41        $.36
 
     Diluted average shares outstanding
      (in millions)                           1,915.7     1,907.7     1,933.4
     Diluted earnings per share                  $.21        $.40        $.36
 
 
     U.S. Bancorp
     CONSOLIDATED ENDING BALANCE SHEET
 
 
                                             March 31,  December 31,  March 31,
     (Dollars in Millions)                     2001         2000        2000
     Assets                                 (Unaudited)             (Unaudited)
     Cash and due from banks                   $7,252      $8,475      $6,644
     Money market investments                     523         657       1,013
     Trading account securities                   811         753         684
     Investment securities
          Held-to-maturity                        260         252         191
          Available-for-sale                   16,251      17,390      17,518
     Loans held for sale                        1,210         764       1,948
     Loans
          Commercial                           51,933      52,817      48,493
          Commercial real estate               26,376      26,443      25,779
          Residential mortgages                 7,433       7,753       9,143
          Retail                               33,907      35,352      31,400
     Total loans                              119,649     122,365     114,815
          Less allowance for credit losses      1,729       1,787       1,726
          Net loans                           117,920     120,578     113,089
     Premises and equipment                     1,787       1,836       1,867
     Customers' liability on acceptances          145         183         117
     Goodwill and other intangible assets       5,211       5,309       4,881
     Other assets                               8,904       8,724       8,029
           Total assets                      $160,274    $164,921    $155,981
 
     Liabilities and Shareholders' Equity
     Deposits
        Noninterest-bearing                   $24,797     $26,633     $24,676
        Interest-bearing                       67,686      68,177      67,506
        Time deposits greater than $100,000    12,359      14,725      10,257
           Total deposits                     104,842     109,535     102,439
     Short-term borrowings                     11,665      11,833      12,631
     Long-term debt                            21,725      21,876      21,440
     Company-obligated mandatorily
      redeemable preferred securities of
      subsidiary trusts holding solely the
      junior subordinated debentures of the
      parent company                            1,400       1,400       1,400
     Acceptances outstanding                      145         183         117
     Other liabilities                          5,254       4,926       3,940
           Total liabilities                  145,031     149,753     141,967
     Shareholders' equity
        Common stock                               19          19          19
        Capital surplus                         3,500       4,276       4,294
        Retained earnings                      11,711      11,658      10,418
        Treasury stock                            (38)       (880)       (483)
        Other comprehensive income                 51          95        (234)
           Total shareholders' equity          15,243      15,168      14,014
           Total liabilities and
            shareholders' equity             $160,274    $164,921    $155,981
 
 SOURCE  U.S. Bancorp

RELATED LINKS

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