U.S. Bancorp

U.S. Bancorp: A Legacy of Banking Excellence

Imagine a bank that has been serving the financial needs of Americans for over 150 years. That’s exactly what U.S. Bancorp is, with its roots tracing back to 1863. Founded in Minneapolis, Minnesota, this American bank holding company stands as one of the oldest active national bank charters in the nation. But how has it managed to stay relevant and thrive over such a long period? Let’s dive into the history and evolution of U.S. Bancorp.

Founding and Early Years

In January 1969, U.S. National Bank of Oregon reorganized as a holding company named U.S. Bancorp. This transformation was no small feat; it required authorization from its directors on September 9, 1968, and legal approval from the Comptroller of the Currency on November 28, 1968. LeRoy B. Staver became chairman and CEO, while Robert B. Wilson took over as president.

Leadership Changes

The leadership of U.S. Bancorp saw significant changes in the late 1970s and early 1980s. In October 1974, Leorriaga became CEO, succeeding Staver. By August 1983, John Elorriaga had stepped down as chairman and CEO, with Carl W. Mays Jr becoming president, Edmund P. Jensen taking over the role of president later that year, and Roger L. Breezley being appointed COO.

Acquisitions and Growth

The 1980s were a period of significant growth for U.S. Bancorp through strategic acquisitions. In December 1986, the company announced its pending acquisition of Valley National Corporation for $13.7 million. Over the years, U.S. Bancorp acquired several banks and financial institutions, including:

• Old National Bancorp’s subsidiaries for $174 million
• Heritage Bank for $2.8 million
• Peoples Bancorp with its Peoples National Bank subsidiary for $275 million
• Mt Baker Bank for $25 million

The company also entered California by acquiring the Bank of Loleta in 1988, renaming it U.S. Bank of California.

Further Acquisitions and Mergers

In March 1990, U.S. Bancorp announced plans to transfer First National Bank’s branches to Washington and relocate its headquarters to Coeur d’Alene, Idaho. After receiving Federal approval, the move was completed in February 1992, renaming it U.S. Bancorp of Washington. In July 1990, U.S. Bancorp announced the acquisition of HeartFed Financial Corporation with its subsidiary for $107.8 million.

In March 1997, First Bank System acquired U.S. Bancorp for $9 billion in stock. S. Bancorp of Oregon was appointed chairman of the new company until his retirement in 1998. The acquisition gave U.S. Bancorp its first entry into Utah and led to significant job cuts.

Recent Developments

In November 2008, the US Treasury invested $6.5 billion in preferred stock and warrants via the Emergency Economic Stabilization Act of 2008. This was U.S. Bancorp’s first participation in the Capital Purchase Program to repay TARP funds.

U.S. Bancorp continued its growth through acquisitions, including:

• The $8 billion mutual fund administration and accounting servicing division of Fiduciary Management, Inc.
• The bond trustee business of First Citizens Bank
• Nine subsidiary banks from the FDIC for an undisclosed amount

In 2017, CEO Richard Davis stepped down and was replaced by CFO Andrew Cecere as chairman, president, and CEO. The bank also made significant strides in technology, performing a real-time payment transaction using The Clearing House system.

Future Prospects

U.S. Bancorp’s future looks promising with its continued expansion on the US West Coast, especially California, where it now has combined assets of $723 billion. In August 2023, Mitsubishi UFG Financial Group Inc announced a significant investment in U.S. Bancorp, strengthening their alliance.

As we look back at U.S. Bancorp’s rich history and forward to its promising future, it’s clear that this bank has not only survived but thrived through the test of time. Its ability to adapt and grow through acquisitions and strategic decisions is a testament to its resilience and commitment to serving its customers.

U.S. Bancorp’s journey is a remarkable story of perseverance and innovation, making it one of the most respected names in American banking.