SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
June 17, 1997
--------------
U. S. BANCORP
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Oregon
(STATE OR OTHER JURISDICTION OF INCORPORATION)
0-3505
(COMMISSION FILE NO.)
93-0571730
(IRS EMPLOYER IDENTIFICATION NO.)
111 S.W. Fifth Avenue
Portland, Oregon 97204
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
Registrant's telephone number, including area code:
(503) 275-6111
<PAGE>
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
AND EXHIBITS.
(a) Financial Statements.
None
(b) Pro Forma Financial Information.
The following Unaudited Pro Forma Condensed Combined
Financial Information relating to the pending merger
of U. S. Bancorp ("USBC") with and into First Bank
System, Inc. ("FBS"), as previously reported in
USBC's Current Report on Form 8-K dated March 26,
1997, is filed under cover of Form 8-K for the
purpose of incorporating such pro forma financial
information into certain of USBC's registration
statements under the Securities Act of 1933:
Unaudited Pro Forma Condensed Combined
Balance Sheet at March 31, 1997
Unaudited Pro Forma Condensed Combined
Statements of Income:
Three Months Ended March 31, 1997
Three Months Ended March 31, 1996
Year Ended December 31, 1996
Year Ended December 31, 1995
Year Ended December 31, 1994
Notes to Unaudited Pro Forma Condensed
Combined Financial Information
The merger, which is conditioned upon, among other
things, the approval of the shareholders of each
party and certain regulatory approvals, is expected
to be consummated by September 30, 1997.
(c) Exhibits.
None
- 2 -
<PAGE>
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
The Unaudited Pro Forma Condensed Combined Financial
Information and accompanying notes which appear below reflect the application of
the pooling-of-interests method of accounting. Under this method of accounting,
the recorded assets, liabilities, shareholders' equity, income and expenses of
FBS and USBC are combined and recorded at their historical amounts. The
Unaudited Pro Forma Condensed Combined Financial Information presented below is
not necessarily indicative of the combined financial position or results of the
future operations of the combined entity or the actual results that would have
been achieved had the merger been consummated prior to the periods indicated.
The following Unaudited Pro Forma Condensed Combined Balance
Sheet as of March 31, 1997, and the Unaudited Pro Forma Condensed Combined
Statements of Income for the three months ended March 31, 1997 and 1996, and for
the three years ended December 31, 1996, combine the historical amounts of FBS
and USBC after giving effect to certain adjustments described in the attached
Notes to Unaudited Pro Forma Condensed Combined Financial Information. The
Unaudited Pro Forma Condensed Combined Financial Information presents the
combined results of operations of FBS and USBC as if the merger of USBC with and
into FBS had been effective at the beginning of each period presented.
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<PAGE>
MERGER OF FBS AND USBC
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET AS OF MARCH 31, 1997
<TABLE>
<CAPTION>
Adjusted
Pro Forma
(Dollars in Millions) FBS USBC Adjustments Combined
--- ---- ----------- --------
ASSETS
<S> <C> <C> <C> <C>
Cash and due from banks............................ $ 2,483 $ 1,945 $ 4,428
Federal funds sold and resale agreements........... 585 517 1,102
Trading account securities......................... 105 87 192
Available-for-sale securities...................... 3,373 3,060 6,433
Held-to-maturity securities........................ -- 776 776
Loans and leases................................... 27,173 25,574 52,747
Allowance for loans and leases..................... 512 481 993
------ ------ ------
Net loans................................. 26,661 25,093 51,754
Bank premises and equipment........................ 393 617 $ (86)(C) 924
Customer's liability on acceptances................ 188 433 621
Other assets....................................... 2,212 1,226 175(C) 3,613
------ ------ --- ------
Total assets.............................. $ 36,000 $ 33,754 $ 89 $ 69,843
====== ====== === ======
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits........................................... $ 23,423 $ 25,079 $ 48,502
Federal funds purchased and repurchase
agreements................................ 2,032 1,709 3,741
Other short-term funds borrowed.................... 1,762 824 2,586
Long-term debt..................................... 4,257 1,950 6,207
Company-obligated mandatorily redeemable
preferred securities of subsidiary trust.. 300 300 600
Acceptances outstanding............................ 188 433 621
Other liabilities.................................. 1,037 677 $ 539(C) 2,253
------ ------ --- ------
Total liabilities......................... 32,999 30,972 539 64,510
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<PAGE>
Adjusted
Pro Forma
(Dollars in Millions) FBS USBC Adjustments Combined
--- ---- ----------- --------
Shareholders' equity:
Preferred stock.................................... -- 150 150
Common stock....................................... 177 741 (601)(D) 317
Capital surplus.................................... 1,162 199 601(D) 1,962
Retained earnings.................................. 2,256 1,715 (450)(C) 3,521
Unrealized loss on securities, net of tax.......... (26) (23) (49)
Less: treasury stock.............................. 568 -- 568
------ ------ ---- ------
Shareholders' equity............................... 3,001 2,782 (450) 5,333
------ ------ ---- ------
Total liabilities and shareholders' equity......... $ 36,000 $ 33,754 $ 89 $ 69,843
====== ====== ==== ======
</TABLE>
See Notes to Unaudited Pro Forma Condensed Combined Financial Information
- 5 -
<PAGE>
MERGER OF FBS AND USBC
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME
FOR THE QUARTER ENDED MARCH 31, 1997
<TABLE>
<CAPTION>
Historical Pro Forma
----------------------
(In Millions, Except Per Share Data) FBS USBC Combined
--- ---- --------
INTEREST INCOME
<S> <C> <C> <C>
Loans................................................. $ 586.2 $ 576.5 $ 1,162.7
Securities............................................ 57.4 58.7 116.1
Other interest income................................. 12.6 2.2 14.8
-------------- -------------- --------------
Total interest income........................ 656.2 637.4 1,293.6
INTEREST EXPENSE
Deposits.............................................. 158.6 193.2 351.8
Federal funds purchased, repurchase agreements
and other short-term borrowings.............. 54.9 29.5 84.4
Long-term debt........................................ 56.6 31.6 88.2
Company-obligated mandatorily redeemable
preferred securities of subsidiary trust..... 6.1 6.2 12.3
--------------- -------------- --------------
Total interest expense....................... 276.2 260.5 536.7
--------------- -------------- --------------
Net interest income................................... 380.0 376.9 756.9
Provision for credit losses........................... 37.0 45.9 82.9
--------------- -------------- --------------
Net interest income after provision for
credit losses................................ 343.0 331.0 674.0
NONINTEREST INCOME
Credit card fee revenue............................... 77.3 13.1 90.4
Trust fees............................................ 66.0 18.6 84.6
Service charges on deposit accounts................... 36.4 50.2 86.6
Securities gains...................................... -- 1.7 1.7
Equity investment income.............................. -- 5.0 5.0
Other................................................. 46.1 57.0 103.1
-------------- -------------- -------------
Total noninterest income..................... 225.8 145.6 371.4
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<PAGE>
Historical Pro Forma
----------------------
(In Millions, Except Per Share Data) FBS USBC Combined
--- ---- --------
NONINTEREST EXPENSE
Salaries and benefits................................. 141.4 159.9 301.3
Occupancy and equipment............................... 46.7 49.7 96.4
Goodwill and other intangible assets.................. 19.8 7.5 27.3
Other................................................. 88.1 70.0 158.1
-------------- -------------- -------------
Total noninterest expense.................... 296.0 287.1 583.1
-------------- -------------- -------------
Income from continuing operations before
income taxes................................. 272.8 189.5 462.3
Applicable income taxes............................... 101.0 68.0 169.0
-------------- -------------- -------------
Income from continuing operations..................... $ 171.8 $ 121.5 $ 293.3
============== ============== =============
Income from continuing operations applicable
to common equity............................. $ 171.8 $ 118.5 $ 290.3
============== ============== =============
EARNINGS PER COMMON SHARE
Average common and common equivalent shares........... 135,525,339 147,934,580 249,153,010
Income from continuing operations..................... $ 1.27 $ .80 $ 1.17
============== ============== =============
</TABLE>
See Notes to Unaudited Pro Forma Condensed Combined Financial Information
- 7 -
<PAGE>
MERGER OF FBS AND USBC
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME
FOR THE QUARTER ENDED MARCH 31, 1996
<TABLE>
<CAPTION>
Historical Pro Forma
---------------------
(In Millions, Except Per Share Data) FBS USBC Combined
--- ---- --------
INTEREST INCOME
<S> <C> <C> <C>
Loans.......................................................... $ 574.7 $ 531.2 $ 1,105.9
Securities..................................................... 68.7 59.4 128.1
Other interest income.......................................... 11.2 9.4 20.6
-------------- -------------- --------------
Total interest income................................. 654.6 600.0 1,254.6
INTEREST EXPENSE
Deposits....................................................... 167.0 189.8 356.8
Federal funds purchased, repurchase agreements and
other short-term borrowings........................... 63.5 38.3 101.8
Long-term debt................................................. 49.5 23.7 73.2
-------------- -------------- --------------
Total interest expense................................ 280.0 251.8 531.8
-------------- -------------- --------------
Net interest income............................................ 374.6 348.2 722.8
Provision for credit losses.................................... 31.0 30.1 61.1
-------------- -------------- --------------
Net interest income after provision for credit losses.......... 343.6 318.1 661.7
NONINTEREST INCOME
Credit card fee revenue........................................ 62.8 18.4 81.2
Trust fees..................................................... 56.2 17.2 73.4
Service charges on deposit accounts............................ 33.9 47.0 80.9
Securities gains............................................... 14.6 3.4 18.0
Termination fee................................................ 115.0 -- 115.0
Gain on sale of mortgage banking operations.................... 45.8 -- 45.8
Equity investment income....................................... -- 10.5 10.5
Other.......................................................... 55.2 48.0 103.2
-------------- -------------- -------------
Total noninterest income.............................. 383.5 144.5 528.0
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<PAGE>
Historical Pro Forma
---------------------
(In Millions, Except Per Share Data) FBS USBC Combined
--- ---- --------
NONINTEREST EXPENSE
Salaries and benefits.......................................... 152.3 151.0 303.3
Occupancy and equipment........................................ 49.6 51.4 101.0
Goodwill and other intangible assets........................... 47.4 3.4 50.8
Merger and restructuring....................................... 69.9 8.4 78.3
Other.......................................................... 105.2 73.0 178.2
-------------- ------------- -------------
Total noninterest expense............................. 424.4 287.2 711.6
-------------- ------------- -------------
Income from continuing operations before income taxes.......... 302.7 175.4 478.1
Applicable income taxes........................................ 125.9 62.5 188.4
-------------- ------------- -------------
Income from continuing operations.............................. $ 176.8 $ 112.9 $ 289.7
============== ============= =============
Income from continuing operations applicable to
common equity......................................... $ 175.1 $ 109.9 $ 285.0
============== ============= =============
EARNINGS PER COMMON SHARE
Average common and common equivalent shares.................... 137,020,911 150,814,519 252,254,906
Income from continuing operations.............................. $ 1.28 $ .73 $ 1.13
============== ============= =============
</TABLE>
See Notes to Unaudited Pro Forma Condensed Combined Financial Information
- 9 -
<PAGE>
MERGER OF FBS AND USBC
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
Historical Pro Forma
-----------------
(In Millions, Except Per Share Data) FBS USBC Combined
--- ---- --------
INTEREST INCOME
<S> <C> <C> <C>
Loans................................................................ $ 2,339.3 $ 2,221.2 $ 4,560.5
Securities........................................................... 267.0 233.6 500.6
Other interest income................................................ 47.6 28.5 76.1
------------- ------------- -------------
Total interest income................................... 2,653.9 2,483.3 5,137.2
INTEREST EXPENSE
Deposits............................................................. 673.1 768.2 1,441.3
Federal funds purchased, repurchase agreements and other borrowings.. 245.1 147.4 392.5
Long-term debt....................................................... 202.7 101.1 303.8
------------- ------------- -------------
Total interest expense.................................. 1,120.9 1,016.7 2,137.6
------------- ------------- -------------
Net interest income.................................................. 1,533.0 1,466.6 2,999.6
Provision for credit losses.......................................... 136.0 135.2 271.2
------------- ------------- -------------
Net interest income after provision for credit losses................ 1,397.0 1,331.4 2,728.4
NONINTEREST INCOME
Credit card fee revenue.............................................. 292.6 59.7 352.3
Trust fees........................................................... 230.7 71.6 302.3
Service charges on deposit accounts.................................. 141.5 197.4 338.9
Securities gains..................................................... 15.0 5.8 20.8
Termination fee...................................................... 190.0 -- 190.0
State income tax refund.............................................. 65.0 -- 65.0
Gain on sale of mortgage banking operations.......................... 45.8 -- 45.8
Equity investment income............................................. -- 27.8 27.8
Gain on sale of operations and loans................................. -- 25.6 25.6
Other................................................................ 205.1 197.3 402.4
------------- ------------- -------------
Total noninterest income................................ 1,185.7 585.2 1,770.9
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<PAGE>
Historical Pro Forma
-----------------
(In Millions, Except Per Share Data) FBS USBC Combined
--- ---- --------
NONINTEREST EXPENSE
Salaries and benefits................................................ 570.6 615.2 1,185.8
Occupancy and equipment.............................................. 187.5 200.5 388.0
Goodwill and other intangible assets................................. 106.5 22.8 129.3
SAIF special assessment.............................................. 51.0 10.3 61.3
Merger and restructuring............................................. 69.9 18.2 88.1
Other................................................................ 402.6 307.8 710.4
------------- ------------- -------------
Total noninterest expense............................... 1,388.1 1,174.8 2,562.9
------------- ------------- -------------
Income from continuing operations before income taxes................ 1,194.6 741.8 1,936.4
Applicable income taxes.............................................. 454.8 262.9 717.7
------------- ------------- -------------
Income from continuing operations.................................... $ 739.8 $ 478.9 $ 1,218.7
============= ============= =============
Income from continuing operations applicable to common equity........ $ 733.6 $ 466.7 $ 1,200.3
============= ============= =============
EARNINGS PER COMMON SHARE
Average common and common equivalent shares.......................... 137,415,619 151,312,898 253,240,035
Income from continuing operations.................................... $ 5.34 $ 3.08 $ 4.74
============= ============= =============
</TABLE>
See Notes to Unaudited Pro Forma Condensed Combined Financial Information
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<PAGE>
MERGER OF FBS AND USBC
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
Historical Pro Forma
-------------------
(In Millions, Except Per Share Data) FBS USBC Combined
--- ---- --------
INTEREST INCOME
<S> <C> <C> <C>
Loans........................................................ $ 2,273.4 $ 2,116.9 $ 4,390.3
Securities................................................... 237.2 249.9 487.1
Other interest income........................................ 34.6 25.7 60.3
-------------- -------------- -------------
Total interest income............................... 2,545.2 2,392.5 4,937.7
INTEREST EXPENSE
Deposits..................................................... 706.7 710.0 1,416.7
Federal funds purchased, repurchase agreements and
other borrowings.................................... 208.3 199.7 408.0
Long-term debt............................................... 190.0 83.4 273.4
-------------- -------------- -------------
Total interest expense.............................. 1,105.0 993.1 2,098.1
-------------- -------------- -------------
Net interest income.......................................... 1,440.2 1,399.4 2,839.6
Provision for credit losses.................................. 115.0 124.1 239.1
-------------- -------------- -------------
Net interest income after provision for credit losses........ 1,325.2 1,275.3 2,600.5
NONINTEREST INCOME
Credit card fee revenue...................................... 232.7 73.4 306.1
Trust fees................................................... 175.3 65.8 241.1
Service charges on deposit accounts.......................... 123.7 189.5 313.2
Securities gains............................................. -- 3.0 3.0
Gain on sale of branches..................................... 31.0 -- 31.0
Gain on sale of operations and loans......................... -- 8.9 8.9
Equity investment income..................................... -- 3.2 3.2
Other........................................................ 220.4 180.9 401.3
-------------- -------------- -------------
Total noninterest income............................ 783.1 524.7 1,307.8
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<PAGE>
Historical Pro Forma
-------------------
(In Millions, Except Per Share Data) FBS USBC Combined
--- ---- --------
NONINTEREST EXPENSE
Salaries and benefits........................................ 537.4 602.1 1,139.5
Occupancy and equipment...................................... 192.8 212.8 405.6
Goodwill and other intangible assets......................... 57.1 16.6 73.7
Merger and restructuring..................................... -- 98.9 98.9
Other........................................................ 418.6 360.4 779.0
------------- ------------- -------------
Total noninterest expense........................... 1,205.9 1,290.8 2,496.7
------------- ------------- -------------
Income from continuing operations before income taxes........ 902.4 509.2 1,411.6
Applicable income taxes...................................... 334.3 180.2 514.5
------------- ------------- -------------
Income from continuing operations............................ $ 568.1 $ 329.0 $ 897.1
============= ============= =============
Income from continuing operations applicable to
common equity....................................... $ 560.6 $ 316.8 $ 877.4
============= ============= =============
EARNINGS PER COMMON SHARE
Average common and common equivalent shares.................. 133,936,030 151,554,000 250,100,100
Income from continuing operations............................ $ 4.19 $ 2.09 $ 3.51
============= ============= =============
</TABLE>
See Notes to Unaudited Pro Forma Condensed Combined Financial Information
- 13 -
<PAGE>
MERGER OF FBS AND USBC
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
Historical Pro Forma
---------------------
(In Millions, Except Per Share Data) FBS USBC Combined
--- ---- --------
INTEREST INCOME
<S> <C> <C> <C>
Loans........................................................ $ 1,914.7 $ 1,786.4 $ 3,701.1
Securities................................................... 339.9 263.2 603.1
Other interest income........................................ 33.5 24.8 58.3
------------- ------------- -------------
Total interest income............................... 2,288.1 2,074.4 4,362.5
INTEREST EXPENSE
Deposits..................................................... 597.3 523.8 1,121.1
Federal funds purchased, repurchase agreements and
other borrowings................................... 123.5 135.6 259.1
Long-term debt............................................... 147.9 79.3 227.2
------------- ------------- -------------
Total interest expense.............................. 868.7 738.7 1,607.4
------------- ------------- -------------
Net interest income.......................................... 1,419.4 1,335.7 2,755.1
Provision for credit losses.................................. 123.6 120.1 243.7
------------- ------------- -------------
Net interest income after provision for credit losses........ 1,295.8 1,215.6 2,511.4
NONINTEREST INCOME
Credit card fee revenue...................................... 179.0 73.3 252.3
Trust fees................................................... 159.2 65.3 224.5
Service charges on deposit accounts.......................... 127.3 191.6 318.9
Securities losses............................................ (115.0) (9.2) (124.2)
Gain on sales of operations and loans........................ -- 62.9 62.9
Equity investment loss....................................... -- (5.4) (5.4)
Other........................................................ 208.4 174.2 382.6
------------- ------------- -------------
Total noninterest income............................ 558.9 552.7 1,111.6
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<PAGE>
Historical Pro Forma
---------------------
(In Millions, Except Per Share Data) FBS USBC Combined
--- ---- --------
NONINTEREST EXPENSE
Salaries and benefits........................................ 556.4 646.2 1,202.6
Occupancy and equipment...................................... 192.1 227.4 419.5
Goodwill and other intangible assets......................... 50.4 16.0 66.4
Merger and restructuring..................................... 125.3 100.0 225.3
Other........................................................ 425.2 415.5 840.7
------------- ------------ ------------
Total noninterest expense........................... 1,349.4 1,405.1 2,754.5
------------- ------------ ------------
Income from continuing operations before income taxes........ 505.3 363.2 868.5
Applicable income taxes...................................... 191.8 108.5 300.3
------------- ------------ ------------
Income from continuing operations............................ $ 313.5 $ 254.7 $ 568.2
============= ============ ============
Income from continuing operations applicable to
common equity....................................... $ 300.9 $ 242.5 $ 543.4
============= ============ ============
EARNINGS PER COMMON SHARE
Average common and common equivalent shares.................. 136,274,991 151,391,600 251,859,146
Income from continuing operations............................ $ 2.21 $ 1.60 $ 2.16
============= ============ ============
</TABLE>
See Notes to Unaudited Pro Forma Condensed Combined Financial Information
- 15 -
<PAGE>
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED
FINANCIAL INFORMATION
NOTE A: MERGERS AND ACQUISITIONS
On February 16, 1996, FBS completed its acquisition of Omaha-based
FirsTier Financial Inc. ("FirsTier"), a regional financial services holding
company based in Omaha, Nebraska, with $3.7 billion in assets and $2.9 billion
in deposits. The acquisition was accounted for under the purchase method of
accounting.
On June 6, 1996, USBC acquired California Bancshares, Inc., a $1.6
billion bank holding company headquartered in the San Francisco East Bay Area,
in a transaction accounted for as a purchase.
NOTE B: BASIS OF PRESENTATION
The unaudited pro forma financial information has been prepared under
the pooling-of-interests method of accounting and is based on the historical
consolidated financial statements of FBS and USBC. Certain amounts in the
historical financial statements of USBC have been reclassified to conform with
FBS's historical financial statement presentation.
The pro forma adjustments represent management's best estimate based on
available information at this time. These adjustments may change as additional
information becomes available.
NOTE C: MERGER AND INTEGRATION COSTS
In connection with the merger, the combined entity expects to incur
pre-tax merger-related costs of $625 million ($450 million after-tax), $450
million of which is expected to occur at closing with the remaining $175 million
to be incurred within a year. The costs are expected to include: $270 million in
severance and retention, $190 million in conversion costs (primarily system
development and production costs, and customer forms and communication costs),
$40 million in occupancy expenses (primarily lease exit costs) and $39 million
in other merger costs (principally legal and investment banking fees). These
costs also include an $86 million write-down of duplicate facilities and other
capitalized assets.
These amounts, including the related tax effect of $175 million, have
been reflected in the Unaudited Pro Forma Condensed Combined Balance Sheet as of
March 31, 1997, and are not reflected in the Unaudited Pro Forma Condensed
Combined Statements of Income as they are not expected to have a continuing
impact on the combined entity. These amounts will be recorded in the financial
statements in accordance with generally accepted accounting principles.
- 16 -
<PAGE>
NOTE D: SHAREHOLDERS' EQUITY
In connection with the transaction, FBS will exchange 0.755 shares of
FBS Common Stock for each share of common stock of U. S. Bancorp outstanding. U.
S. Bancorp had 148,175,994 shares of common stock outstanding as of March 31,
1997. The common stock in the Unaudited Pro Forma Condensed Combined Balance
Sheet has been adjusted to reflect the par value of FBS Common Stock to be
issued, with a related adjustment to capital surplus. Pro forma combined
retained earnings reflects the adjustments for anticipated merger-related costs
as discussed above.
NOTE E: OPERATING COST SAVINGS
FBS expects to achieve $340 million of pre-tax operating cost savings
through reductions in staff, consolidation of data processing and back office
operations, and elimination of certain duplicate or excess office facilities.
Approximately $220 million, or 65 percent, of the operating cost savings are
expected to be achieved by the end of 1998 with the remainder achieved in 1999.
No adjustment has been included in the Unaudited Pro Forma Condensed Combined
Financial Information for the anticipated operating cost savings. There can be
no assurance that anticipated operating cost savings will be achieved in the
amounts or at the times anticipated.
NOTE F: EARNINGS PER SHARE
The pro forma combined earnings per common share data is computed based
on the average number of outstanding shares and common equivalent shares of FBS,
and the average number of outstanding shares and common equivalent shares of
USBC adjusted for the exchange ratio, for each period presented.
The historical earnings per common share for USBC was based on the
average number of common shares outstanding. The impact of common share
equivalents, such as stock options, and other potentially dilutive securities is
not material; therefore, they were not included in the historical USBC
calculations. The following table summarizes USBC average common shares and USBC
average common shares and common equivalent shares.
<TABLE>
<CAPTION>
USBC Average Common and
USBC Average Common Shares Common Equivalent Shares
<S> <C> <C>
March 31, 1997......................... 147,934,580 150,500,227
March 31, 1996......................... 150,814,519 152,627,808
December 31, 1996...................... 151,312,898 153,409,823
December 31, 1995...................... 151,554,000 153,859,695
December 31, 1994...................... 151,391,600 153,091,596
</TABLE>
- 17 -
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
U. S. Bancorp
(Registrant)
By /s/ Steven P. Erwin
Steven P. Erwin
Executive Vice President and
Chief Financial Officer
Dated: June 17, 1997
- 18 -
