US Bancorp 2Q17 Earnings Call Notes

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Andy Cecere

Strong growth in middle market

“the areas of growth continue to be in few — middle market is doing exceptionally well, that’s in excess of 2% on a linked quarter basis and we continue to see that accelerating or being about that level in future quarters, that’s doing well. As Terry and I both mentioned, we saw some growth in the second half of the second quarter in the large corporate wholesale part of the category. And then a lot of leasing as Terry mentioned, very high quality but given the great platform relationships we had that shows some growth. So those are areas that I would say are our principal areas of focus.”

Terry Dolan

Will likely be more competition for deposits as the Fed pulls liquidity out

“I do think that as — or we think as excess liquidity comes out of the market you could expect to see and you will expect to see more competition with respect to deposits, I would also expect that the long end of the curve on a relative basis would be a little bit higher; as a result some of their activities — that have [indiscernible] from a deposit standpoint is most likely to come on the wholesale side of the equation.”

We remain cautious in commercial mortgage markets where environment has created unfavorable conditions

“Commercial real estate lending reflects our prudent approach to certain CRE segments such as multi-family and retail given current market conditions. We did have opportunities for growth in construction lending. However, remain cautious in commercial mortgage markets where the competitive environment has created unfavorable conditions from a risk and return standpoint.”