U.S. Bancorp net income rises to $1.46 billion in 4Q
Despite slowdown, mortgage originations increase
Minneapolis-based U.S. Bancorp (USB) recorded a net income of $1.4 billion for the fourth quarter of 2013, or 76 cents per diluted common share, compared to $1.4 billion, or 72 cents per diluted common share, for the fourth quarter of 2012.
The lender hit $58.4 billion on strong lending activity during the fourth quarter, including $15.1 billion of mortgage and other retail loan originations.
"I am particularly proud to have achieved these results during a year marked by slow economic growth, a significant pullback in mortgage activity and continued regulatory and legislative change and uncertainty," said U.S. Bancorp Chairman President and CEO Richard Davis.
"Our results clearly demonstrate the benefits we derive from our diverse mix of businesses and conservative risk profile," Davis said.
In addition, net charge-offs fell on both a linked quarter and year-over-year basis, hitting $16 million, or 4.9%, lower than the third quarter of 2013.
Nonperforming assets also dropped on both a linked quarter and year-over-year basis, decreasing 3.6% from the third quarter of 2013.
"The modest decrease in total noninterest expense year-over-year was primarily due to the impact of an $80 million mortgage-foreclosure-related regulatory settlement accrual in the fourth quarter of 2012 and a reduction in mortgage servicing review-related professional services expense in the current quarter, offset by higher costs related to investments in tax-advantaged projects and employee benefits expense," Davis explained.
For the full 2013 fiscal year, U.S. Bancorp reported a net income of $5.8 billion, 3.3% higher than what it recorded in 2012.