U.S. Bank profits climb 5 percent

Last edited 3:28 p.m., Aug. 8, 2013

U.S. Bancorp (NYSE: USB) posted second-quarter profits of $1.48 billion, a 4.9 percent increase compared to $1.42 billion earnings in the same quarter of 2012.

The Minneapolis-based holding company, which operates eight U.S. Bank branches in Springfield, recorded diluted earnings per share of 76 cents for the quarter ended June 30, a 5-cent uptick from the second quarter of last year, according to a news release.

Officials pointed to two primary drivers in the company's year-to-year profit increase - reductions in noninterest expense and provision for credit losses.

Noninterest expense decreased 1.7 percent to $2.56 billion from $2.6 billion. Noninterest income registered at $2.28 billion, a 3.4 percent decrease from $2.36 billion. Provision for credit losses dropped 23 percent to $362 million from $470 million in second-quarter 2012, according to the release.

Second-quarter financial notes:

• U.S. Bank recorded new lending activity of $65.7 billion in the second quarter, led by $37.6 billion in new and renewed commercial and commercial real estate loans.
• The company repurchased 18 million shares of its common stock.
• Total loans increased 5.2 percent to $225.2 billion from $214.1 billion.

As of June 30, U.S. Bancorp's assets were $353.4 billion and its deposits were $251.6 billion. The company operates 3,087 branches in 25 states, according to the release.

USB shares reached a 52-week high yesterday of $37.74. As of 10:43 a.m., the company's shares were trading at $36.65. Its 52-week low is $30.96.