U.S. BANCORP $150 MILLION SUBORDINATED DEBT RATED 'A+'
CHICAGO, March 16 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A+' (single A plus) to U.S. Bancorp's $150 million offering of 7.00 percent subordinated notes. The issue was priced to yield 7.035 percent to maturity and is due March 15, 2003. The rating recognizes U.S. Bancorp's strong balance sheet, including a large capital base and above average loan quality and reserve coverage, solid earnings and our high regard for management. U.S. Bancorp continued its strong earnings trend in the fourth quarter with income of $66 million which was a 1.27 percent return on assets, compared to $49 million, 1.06 percent, in 1991. The high level of profitability reflects the above average core earnings (normalized pretax earnings before asset quality charges) which represented 2.31 percent of average assets in the fourth quarter. Asset quality measures improved significantly in 1992, in part due to the sale of $70 million of nonperforming HLT loans. Nonperforming assets equaled 2.13 percent of loans and other real estate owned at Dec. 31, 1992 compared to 2.41 percent and 2.75 percent three months and 12 months earlier, respectively. Importantly, nonperformers equal only 18 percent of stockholders' equity. Loan loss reserves are solid, equaling 1.91 percent of loans and 112 percent of nonperforming loans at year end 1992. Capital ratios are very strong with common equity equaling 7.87 percent of assets at Dec. 31, 1992. Portland, Ore.-based U.S. Bancorp, a super-regional financial services company, reported total assets of $20.7 billion at Dec. 31, 1992. Principal bank subsidiaries are located in Oregon and Washington, although U.S. Bancorp significantly expanded its presence in Northern California and Nevada with the purchase of certain operations from BankAmerica Corporation. -0- 3/16/93 /CONTACT: Charles J. Orabutt, Jr., CPA of Duff & Phelps Credit Rating Co., 312-368-3153/ (USBC)
CO: U.S. Bancorp ST: Oregon, Washington IN: FIN SU: RTG
SH -- NY073 -- 6719 03/16/93 16:23 EST
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|Date:||Mar 16, 1993|
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