U.S. Bank posts flat net income of $1.5B

Minneapolis-based U.S. Bancorp (NYSE: USB) reported third-quarter net income of $1.5 billion, flat from the same quarter a year ago.

The holding company operating eight U.S. Bank branches in Springfield posted earnings per share of 76 cents for the three months ended Sept. 30, a 2-cent increase compared to third-quarter 2012, according to a news release.

“The company’s third-quarter earnings ... reflected our continuing ability to manage through the current uncertain and slow-growing economy," U.S. Bancorp Chairman, President and CEO Richard Davis said in the release. "Our company produced industry-leading performance metrics, including return on average assets of 1.65 percent, return on average common equity of 15.8 percent and an efficiency ratio of 52.4 percent, as our diversified mix of businesses mitigated the impact of the pull-back in mortgage banking activity."

Third-quarter financial highlights:

• New lending activity totaled $63.1 billion during the quarter, consisting of $37.8 billion in new and renewed commercial commitments; $22.5 billion in mortgage and other retail loan originations; and $2.8 billion in new credit card account lines.
• Net interest income decreased 2.5 percent to $2.7 billion from $2.8 billion a year ago.
• Provision for credit losses dropped 38.9 percent to $298 million from $488 million.

According to the Federal Deposit Insurance Corp.’s Deposit Market Share Report released Sept. 30., U.S. Bank ranked seventh in the Springfield metropolitan statistical area with deposits of $307.1 million at the end of June. The company held 3.8 percent of the local market.

U.S. Bank recorded assets of $360 billion and deposits of $261.7 billion as of Sept. 30. The company operates 3,088 branches in 25 states, according to the release.

USB shares were trading at $37.31 as of 10:20 a.m., compared to a 52-week range of $30.96 to $38.23.