U.S. Bank profits rise 7 percent

U.S. Bancorp (NYSE: USB) posted first-quarter earnings of $1.4 billion, an 6.7 percent increase compared to profits of $1.3 billion in the same quarter last year.

The Minneapolis-based holding company, which operates eight U.S. Bank branches in Springfield, reported diluted earnings per share of 73 cents for the quarter that ended March 31, a 6-cent uptick compared to first-quarter 2012, according to a news release.

“Our first quarter earnings ... reflected our company’s continuing ability to perform against the backdrop of a slow-growth, uncertain economic environment," U.S. Bancorp Chairman, President and CEO Richard Davis said in the release.

Company officials said first-quarter earnings were driven by a reduction in noninterest expense and a lower provision for credit losses. Noninterest expense dropped to $2.47 million during the quarter, representing a 3.5 percent decrease from $2.56 million in the same quarter a year ago. U.S. Bancorp's provision for credit losses decreased by 16.2 percent to $403 million from $481 million in first-quarter 2012.

Other first-quarter financial notes:

• The company's new lending activity totaled $57.3 billion during the quarter, comprising $27.1 billion in new and renewed commercial activity;
• Net interest income rose slightly - by 0.7 percent - to $2.71 million from $2.69 million.
• Officials said 69 percent of first-quarter earnings were returned to shareholders via dividends and share buybacks, including 17 million shares of common stock repurchased.

At the end of the first quarter, U.S. Bancorp's assets were $355.4 billion, its deposits were $245 billion and its average loans were $12.3 billion. The company operates 3,080 branches in 25 states, according to the release.

USB shares were trading at $32.64 as of 10:28 a.m., compared to a 52-week range of $25.58 to $35.46.