Who Owns U.S. Bank?

U.S. Bank is owned by its multiple institutional and individual shareholders. If you're curious about its safety, read on to learn more.

You may have seen a U.S. Bank in your neighborhood, especially if you live in California. But do you know who owns it?

Find out who's behind this mega financial institution and how safe your money is with them.

Who Currently Owns U.S. Bank?

U.S. Bancorp is the parent company of U.S. Bank, one of the largest banks in the nation. It has almost 77,000 employees in 13 countries, raking in an annual revenue of $24 billion.^[1]

Headquartered in Minneapolis, Minnesota, U.S. Bank operates in 26 states, concentrating most of its 2,000+ branches in the Western and Midwestern regions. It's notably strong in California, Illinois, Missouri, Ohio, and Washington.

U.S. Bank offers a wide range of financial products for personal banking, wealth management, business, corporate/commercial, and institutional needs.

Meanwhile, U.S. Bancorp has other interests, with subsidiaries like Elavon (credit card processing services), Piper Jaffray (financial services), and Talech (cloud-based software company)

Is U.S. Bancorp Owned by the Government?

Despite being named as such, neither U.S. Bancorp nor U.S. Bank is owned by the government. Hence, it is not a government bank as some may have thought.

Instead, it is a publicly-traded company, 77.25% of which is owned by institutional investors led by investment titans Vanguard Group and Blackrock.^[4]

Who are the Major Shareholders of U.S. Bancorp?

Vanguard is the largest U.S. Bancorp shareholder, with 8.77% ownership while Blackrock owns 7.30%. Their total institutional holdings are valued at $5.15 billion and $4.29 billion, respectively.^[7]

Meanwhile, here are the other institutional investors with more than 2% ownership of U.S. Bancorp.

• State Street Corp. (4.10%):
  State Street Corporation is one of the oldest and most prominent American financial services company founded in 1792. It serves nearly 10% of the world's assets^[8] and maintains its headquarters in Boston, Massachusetts.

• JPMorgan Chase & Co. (3.97%):
  Another financial powerhouse existing for more than 2 centuries, JPMorgan Chase has over $2.6 trillion assets under management in 100+ global markets.^[9] It consistently ranks among the largest banks in the world in terms of market capitalization.

• MUFG Bank Ltd. (4.39%):
  Mitsubishi UFJ Financial Group is the biggest bank in Japan which sold Union Bank to U.S. Bancorp in 2022.^[10] As part of the buyout deal, it has roughly 44 million shares of U.S. Bancorp common stock and $5.5 billion in cash.^[11]

• T. Rowe Price Associates Inc. (1.82%):
  T. Rowe Price offers a diverse range of investment products and services, adhering to an active investment management approach.^[12] It is a prolific investor, with nearly 3,000 positions valued at $726 billion.^[13]

• FMR LLC (Fidelity Investments) (2.41%):
  Rounding up the list is yet another investment giant. Fidelity Investments boasts serving more than 43 million individual investors, which include young and first-time investors.^[14] The company was established in 1946.

What Banks Did U.S. Bank Take Over?

U.S. Bancorp purchased Mitsubishi UFJ Financial Group (MUFG) Union Bank in December 2022, increasing its customer base by over 1 million.^[17] Part of the deal was for MUFG to retain a minority stake of almost 3% in the company.^[18]

Other banks bought out by U.S. Bank include:

• Peoples National Bank of Washington (1987)
  
• First Bank System, Inc. (1997)
  
• Downey Savings and Loan (2008)^[19]

Now that you know who owns U.S. Bank, the next section will tackle its safety.

Is U.S. Bank Safe?

U.S. Bank, being one of the largest in the country, is generally considered safe by most standards. Their deposit accounts are insured up to $250,000 by the FDIC ^[20], which is widely used by banks and financial institutions.

It's important to remember that a bank's safety isn't 100% guaranteed, but these factors enhance the safety of your financial transactions with U.S. Bank.

• Financial strength:
  U.S. Bank, with over 150 years of experience, has weathered economic ups and downs successfully ^[21]. The bank's commitment to financial discipline, dating back to the Lincoln administration through the National Bank Act, allows it to maintain sound banking principles while adapting to modern times.

  This dedication is reflected in their strong financial performance.

• Regulation and oversight:
  Just like other banks, U.S. Bank is closely monitored by regulatory agencies like the Office of the Comptroller of the Currency (OCC) and the Federal Reserve to ensure they follow all the rules.

• Diverse services:
  U.S. Bank boasts many products and services, from basic checking accounts to complex financial planning which help spread the risk around, making it more stable.

• Cybersecurity:
  With robust fraud prevention systems and secure communication channels, U.S. Bank assures you that you can bank safely with them.^[22]

• Customer support:
  For general banking inquiries, you can call 800-USBANKS (872-2657) and talk to a live agent 24/7.

  You can also use these contact options in your U.S. Bank mobile app: schedule an in-person or phone appointment, chat with a banker online, Smart Assistant, or browse topics under their Help Center.

Member FDIC

U.S. Bank Smartly® Checking and Standard Savings - Up to $700 Bonus

Earn up to $700 when you open a new U.S. Bank Smartly® Checking account and a Standard Savings account and complete qualifying activities. Subject to certain terms and limitations. Offer valid through June 27, 2024. Member FDIC.

Earn up to $500 with a new Bank Smartly Checking account. Complete the following within 90 days of account opening:

• Enroll in online banking or the U.S. Bank Mobile App
• Make two or more direct deposit(s) totaling $3,000 to $4,999.99 to earn $100, $5,000 to $9,999.99 to earn $300 or $10,000 or more to earn $500

Earn up to $200 with a new Standard Savings account.

• Make new money deposit(s) totaling $15,000 or more by July 17, 2024
• Maintain that balance until October 31, 2024

Offer may not be available if you live outside of the U.S. Bank footprint or are not an existing client of U.S. Bank or State Farm.

Click Here to Learn More

Expires 6/27/2024

Bottom Line

U.S. Bank, a subsidiary of U.S. Bancorp, is owned mostly by institutional giants with Blackrock and Vanguard as its top 2 investors.

While no institution is entirely risk-free, U.S. Bank's reputation, insurance coverage, and regulatory oversight can make it a safe place to entrust and grow your hard-earned money.

References