U.S. Bancorp (USB) posted a net interest margin of 2.84% in the third quarter of 2026, up 5 basis points from 2.79% in the second quarter, as the bank cited fixed-asset repricing and a small-business credit card portfolio purchase. Taxable-equivalent net interest income rose $103 million, or 2.3%, to $4,490 million, with the company also pointing to higher interest rates. Year over year, the margin was 9 basis points higher than 2.75% in the third quarter of 2025.

Average total loans were $409.5 billion, up 1.0% from the prior quarter, a slower sequential pace than the 3.0% linked-quarter increase reported in the second quarter. Credit card average loans rose 4.7% to $40.2 billion, including the card purchase, after 2.8% linked-quarter growth in the second quarter. Commercial real estate average loans increased 3.4% to $53.0 billion, with commercial mortgages up 2.7% and construction and development up 6.2%.

Average total deposits rose 2.2% to $526.6 billion after a flat linked-quarter move in the second quarter, led by savings accounts up 7.1% to $79.0 billion and money market savings up 2.3% to $186.1 billion. The rate paid on interest-bearing liabilities was 2.53%.

Capital markets revenue jumped 25.0% to $640 million from $512 million, reflecting a full quarter of BTIG contribution after a partial-quarter effect in the second quarter, and 69.3% year over year. Trust and investment management fees increased 2.2% to $802 million. Merchant processing services revenue declined 4.9% to $461 million, which the bank attributed to seasonality. Total noninterest income was $3,480 million.

Noninterest expense rose 1.5% to $4,493 million, with compensation up 2.5% on a full quarter of BTIG costs and technology and communications up 10.8% on product and technology investment. The efficiency ratio was 55.9%.

The provision for credit losses increased 21.6% to $654 million from $538 million, including $135 million of provision for acquired loans tied to the card purchase, partially offset by a better economic outlook and favorable credit performance. The net charge-off ratio improved to 0.51% from 0.53%, with total net charge-offs of $523 million; credit card NCOs fell to $334 million (3.29% rate) from $367 million (3.83%), while commercial mortgage NCOs rose to $42 million (0.39%) from $13 million (0.12%). The allowance for credit losses rose to $8,165 million, or 1.97% of period-end loans, including a $55 million allowance for acquired credit losses, while nonperforming assets declined to $1,324 million, or 0.32% of loans plus ORE.

Basel III standardized CET1 remained 10.8% at September 30, 2026, matching June 30, with ending shares outstanding unchanged at 1,558 million after zero buybacks in the quarter. Net income attributable to U.S. Bancorp was $2,202 million, and diluted earnings per common share were $1.34. Dividends declared were $0.54 a share.