U.S. Bancorp

Positively, USB's noninterest income was roughly 40% of revenue in first-quarter 2024, which compares very favorably with regional bank peers. In addition, we think profitability and deposit retention have performed generally better than industry medians in recent quarters. Its common equity Tier 1 (CET1) ratio was 10.3% as of June 30, 2024, but remains below the median of rated U.S. banks. Its tangible common equity ratio totaled 5.4%, also well below peers, but up from 4.8% at the end of second-quarter 2023. We also expect unrealized losses to gradually decline as the bank's securities portfolio continues to roll over. However, USB would be required to include accumulated other comprehensive income (AOCI) in its regulatory capital ratios if the company is

...We expect U.S. Bancorp (USB) to continue to perform well despite economic and interest rate concerns. Despite a one-notch downgrade in June 2023 given our view of narrower outperformance versus peers, USB remains our highest rated regional bank, in part due to its strong market position and conservative business and financial policies. We think USB's acquisition of MUFG Union Bank (MUB) boosted its market position but increased its loan concentrations in California. Positively, USB's noninterest income was roughly 40% of revenue in first-quarter 2024, which compares very favorably with regional bank peers. In addition, we think profitability and deposit retention have performed generally better than industry medians in recent quarters....

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