Drip Portfolio Report
Wednesday, April 29, 1998
by Dale Wettlaufer (DaleW@fool.com)


ALEXANDRIA, VA (April 28, 1998) -- Continuing on with the companies that we will include in the survey, our second company is U.S. Bancorp. (NYSE: USB). U.S. Bancorp is the product of the merger between First Bank Systems of Minneapolis/St. Paul and U.S. Bancorp of Portland, Oregon. The company has emerged as one of the leading performers in the banking industry, with a low-cost business model and an excellent return on capital employed while operating a lower level of leverage. The company operates in the following states: California, Colorado, Idaho, Illinois, Iowa, Kansas, Minnesota, Montana, Nebraska, Nevada, North Dakota, Oregon, South Dakota, Utah, Washington, Wisconsin, and Wyoming.

U.S. Bancorp is a nearly universal bank with a full array of retail banking services, minus the soon-to-be completed acquisition of Piper Jaffray, which will allow the company to develop retail brokerage capabilities. In addition, the company is the second-largest issuer of commercial charge and credit cards, behind American Express (NYSE: AXP).

Here are the numbers on U.S. Bancorp though Q4 of 1997. The company reported Q1 earnings on the 15th of this month. This spreadsheet will be updated when we look at the company in-depth. This week and next we'll deal with some of the data you see below.

   
 (Financials are in millions) 
      
 Market Cap ...........................$29,945.79     
 Enterprise Value .....................$35,896.79     
 Average Equity/Average Assets...............8.26%     
 Avg. Assets/Avg. Equity (Tangible).........14.12     
 Asset Turnover..............................6.59%     
 Price/Book..................................5.08     
 Price/Assets...............................42.00%     
 Price/Net Loans............................55.77%     
 Price/Deposits.............................61.11%     
 Price/Tangible Assets......................42.59%     
 EV/Tangible Assets.........................51.06%     
 Price/ Tangible Book........................6.11     
 BVPS......................................$23.76     
 Price/Revenues..............................6.44     
    
 ROE2.......................................23.34%     
 ROE........................................21.40%     
 Amortization Adjusted ROE..................27.59%     
 ROA.........................................1.93%     
 ROA2........................................1.954%     
 Net margin2................................29.25%     
 Net Margin.................................26.81%     
 LT Debt/Equity............................193.24%     
 P/E........................................24.02     
 Amortization-Adjusted P/E..................22.02     
 EPS........................................$5.03     
 Cash EPS...................................$5.49     
 Diluted Sharecount........................247.87     
 Cash & Nonearning Assets...............$5,431.0     
 Cash & Nonearning Last Year............$5,711.0     
 Long Term Debt........................$11,382.0     
 Shareholder's Equity...................$5,890.0     
 Tangible Equity........................$4,900.0     
 Last Year Equity.......................$5,763.0     
 Total Assets..........................$71,295.0     
 Last Year Assets......................$69,749.0     
 Total Liabilities.....................$65,405.0     
 Goodwill.................................$990.0     
 Last Year's Goodwill.....................$804.0     
 Gross Loans...........................$54,708.0     
 Loan Loss Reserves.....................$1,009.00     
 Loan Loss Reserves %........................1.84%     
      
 Revenues...............................$4,650.3     
 Interest Income (TTM)..................$5,293.6      
 Interest Expense (TTM).................$2,245.5      
 Net Interest Income....................$3,048.1      
 Provision for Loan Losses................$460.30      
 Noninterest Income (TTM)...............$1,602.2      
 Noninterest Expense (TTM)..............$2,300.70      
 Net Income for Common (TTM)............$1,246.88      
      
 Noninterest income/interest income.........30.3%     
 Noninterest income/revenues................34.45%     
 Noninterest income/NII.....................52.56%     
 Amort. Adjusted Net/Revs...................29.25%     
 Amortization of Intangibles..............$113.30      
      
 Amortization Adjusted Earnings.........$1,360.18     
 Efficiency Ratio...........................47.04%     
 Nonperforming Assets.....................$637.0     
 Nonperforming Assets Ratio..................1.16%     
 Reserves/Nonperforming Loans..............158.40%     
      
 Leveraged Capital Ratio.....................7.30%     
 Tier 1 Capital Ratio........................7.40%     
 Total Risk Based Capital Ratio.............11.60%     
 Interest Income/AEA.........................7.60%     
 Interest Expense/AEA........................3.23%     
 NIM/Tangible Assets.........................4.76%     
      
 Price/Deposits.............................61.11%     
 Price/Assets...............................42.00%     
      
 Deposits..............................$49,000.0     
 Noninterest bearing deposits..........$14,500.0     
 Noninterest deposits/deposits..............29.59%     
 Deposits/Liabilities.......................74.92%     
 ROE2*Tier1..................................7.26     
 ROE2*Tier1*Price/Assets....................17.28     
 Leverage*Turns*Net Margin...................1.55

FoolWatch -- It's what's going on at the Fool today.


TODAY'S NUMBERS

Stock Close Change INTC $80 1/8 +1/16 JNJ $69 3/16 +3/16
Day Month Year History Drip 0.61% (0.05%) 7.25% (8.67%) S&P 500 0.88% (0.65%) 12.80% 15.06% Nasdaq 1.08% 0.87% 17.91% 16.18% Last Rec'd Total # Security In At Current 04/01/98 9.015 INTC $80.417 $80.125 04/07/98 4.099 JNJ $68.952 $69.188 Last Rec'd Total# Security In At Value Change 04/01/98 9.015 INTC $724.94 $722.31 ($2.63) 04/07/98 4.099 JNJ $282.64 $283.60 $0.96 Base: $1400.00 Cash: $339.79** Total: $1345.70

The Drip Portfolio has been divided into 58.937 shares with an average purchase price of $23.754 per share.

The portfolio began with $500 on July 28, 1997, adds $100 on the 1st of every month, and the goal is to have $150,000 in stock by August of the year 2017.

**Transactions in progress:

03/17/98: Sent $81 to buy/enroll in CPB.
04/22/98: Sent $30 to buy more INTC.
04/22/98: Sent $70 to buy more JNJ.