Core Insights - U.S. Bancorp has joined nearly 70 Minnesota-based companies in calling for an immediate de-escalation of tensions following the killing of a second Minneapolis resident by immigration officials [1][9] - The open letter, signed by various CEOs including U.S. Bancorp's CEO Gunjan Kedia, urges cooperation among state, local, and federal officials to find real solutions to the unrest [2][10] Company Position - U.S. Bank, a subsidiary of U.S. Bancorp, is the largest deposit-holder in Minnesota with over 33% market share, and had $692.3 billion in assets as of December 31 [7] - The bank has not closed any branches or suffered damages during the recent protests, unlike the civil unrest in 2020 following George Floyd's murder [7] Industry Response - The Business Roundtable, representing over 200 chief executives, has expressed support for the call to de-escalate tensions in Minneapolis [5][6] - Other financial services companies, including Allianz Life Insurance, Ameriprise Financial, and others, have also signed the open letter advocating for cooperation among authorities [8]

Core Viewpoint - U.S. Bancorp is actively expanding its capabilities and market presence through strategic acquisitions and positive financial performance, positioning itself favorably for future growth [4][5][6]. Financial Performance - U.S. Bancorp reported a core EPS of $1.26 for Q4 2025, exceeding expectations, with net interest income and fees both showing positive surprises [3]. - The company maintained tight expense control and demonstrated solid pre-provision operating leverage during the quarter [3]. Acquisition Details - U.S. Bancorp announced plans to acquire Wall Street brokerage BTIG for up to $1 billion in cash and stock, enhancing its capital markets presence [4][5]. - The acquisition involves an upfront payment of $725 million in cash and stock, with an additional $275 million contingent on performance targets over three years [6]. - This deal is expected to add approximately $750 million in annual revenue, primarily from fee-based services, and will enhance capabilities in equity capital markets, M&A advisory, and equity trading [6]. Strategic Importance - The acquisition of BTIG is seen as a strategic move to fill product gaps for corporate and institutional clients, allowing U.S. Bancorp to offer a more comprehensive suite of capital markets services [5]. - The relationship between U.S. Bancorp and BTIG dates back to 2014, indicating a long-standing partnership that will be further strengthened through this acquisition [5]. Company Overview - U.S. Bancorp operates as a financial services holding company with diverse operations across various sectors, including Wealth, Corporate, Commercial and Institutional Banking, Consumer and Business Banking, Payment Services, and Treasury and Corporate Support [7].

US Bancorp (NYSE:USB) ranks among the best financial stocks to buy according to billionaire Israel Englander. On January 13, Raymond James reiterated its Strong Buy rating on US Bancorp (NYSE:USB) and set a price target of $57 per share following the bank’s acquisition announcement. According to the firm, the acquisition of BTIG is consistent with US Bancorp’s strategy of targeting additional fee-based businesses instead of depository M&As. The acquisition is projected to enhance US Bancorp’s capital mar ...

Core Viewpoint - The article compares U.S. Bancorp (USB) and Northern Trust Corporation (NTRS) to determine which stock is more attractive to value investors, highlighting USB's stronger earnings outlook and better valuation metrics [1][3]. Valuation Metrics - USB has a forward P/E ratio of 11.22, while NTRS has a forward P/E of 15.99, indicating that USB may be undervalued compared to NTRS [5]. - USB's PEG ratio is 1.01, compared to NTRS's PEG ratio of 1.27, suggesting USB has a more favorable growth outlook relative to its price [5]. - USB's P/B ratio is 1.48, while NTRS has a P/B of 2.4, further indicating USB's relative undervaluation [6]. Investment Ratings - USB currently holds a Zacks Rank of 2 (Buy), while NTRS has a Zacks Rank of 3 (Hold), suggesting a stronger investment case for USB [3]. - USB has been assigned a Value grade of B, whereas NTRS has a Value grade of C, reinforcing USB's position as the more attractive option for value investors [6].

Group 1 - US Bancorp is identified as one of the best large cap value stocks to buy in 2026, with TD Cowen raising its price target to $65 from $60 while maintaining a Buy rating [1] - HSBC also raised its price target for US Bancorp to $62 from $58, citing a recent pullback in bank stocks as a selective opportunity for investors [2] - TD Cowen highlighted expanding balance sheets and favorable asset repricing as key drivers for US Bancorp's performance, alongside expectations of benefiting from a shift in Fed leadership in 2026 [1][3] Group 2 - HSBC increased its 2025–2026 adjusted EPS estimates for the banking sector by approximately 1% to 7%, driven by expectations for increased net interest income and stronger investment banking fees [2] - Wolfe Research downgraded US Bancorp to Peer Perform from Outperform on the same day TD Cowen raised its price target [3]

Financial Performance - U.S. Bancorp reported a revenue of $7.37 billion for the quarter ending December 2025, reflecting a 5.5% increase from the previous year and slightly exceeding the Zacks Consensus Estimate of $7.32 billion, resulting in a positive surprise of 0.58% [5] - The company's earnings per share (EPS) for the quarter were $1.26, representing a significant 24.7% increase from $1.07 in the previous year, aligning with the consensus EPS estimate of $1.19 [2][5] - U.S. Bancorp's net income for the quarter reached $2.04 billion, marking a 22.9% increase from the prior-year quarter [2][5] Annual Performance - For the entire year of 2025, U.S. Bancorp achieved earnings of $4.62 per share, exceeding the consensus estimate of $4.55 [6] - The net income for the year was $7.6 billion, reflecting a 20.2% increase from the previous year, supported by lower expenses, higher non-interest income, and a robust capital position [6] Market Position - U.S. Bancorp is recognized as the fifth-largest lender in the United States, offering a wide range of financial services, including banking, investment, mortgage, and payment services, competing with major banks like JPMorgan Chase, Bank of America, and Wells Fargo [3] - RBC Capital maintained its "Outperform" rating for U.S. Bancorp, raising the price target from $57 to $59, reflecting confidence in the company's financial performance and growth prospects [4]

Core Insights - U.S. Bancorp's fourth-quarter 2025 earnings per share (EPS) of $1.26 exceeded the Zacks Consensus Estimate of $1.19, marking a 24.7% increase from the prior-year quarter [1] - Total revenues for the quarter reached $7.37 billion, reflecting a year-over-year growth of 5.1% and surpassing the Zacks Consensus Estimate by 0.6% [1] Revenue and Income Analysis - The revenue growth was supported by broad-based expansion in fee-generating businesses, with non-interest income rising 7.8% year over year to $3.05 billion, driven by higher payment services revenues, trust and investment management fees, capital markets revenues, mortgage banking revenues, and investment products fees [2][3] - Payment services revenues increased by 3.9% from the fourth quarter of 2024, while trust and investment management fees grew by 7.5% due to business growth and favorable market conditions [4] - Capital markets revenues surged by 17.3% due to higher corporate bond underwriting fees, and mortgage banking revenues rose by 12.1% due to increased gain on sale activity [4] Expense Management - Non-interest expenses decreased by 1.9% year over year to $4.23 billion, attributed to lower compensation and employee benefits expenses, although this was partially offset by higher marketing, technology, and other expenses [7] - The tax-equivalent net interest income (NII) totaled $4.31 billion, up 3.2% from the previous year, primarily due to loan growth and fixed asset repricing, with a net interest margin of 2.77%, expanding by 6 basis points year over year [6] Loan and Deposit Trends - Average total loans increased by 1.3% to $384.3 billion from the previous quarter, while average total deposits rose slightly to $515.1 billion [8] - However, the provision for credit losses in the reported quarter was $577 million, up 3% from the prior-year quarter, indicating potential concerns regarding credit quality [8] Future Outlook - Management anticipates revenue growth, capital markets expansion, and payments innovation to be key drivers for 2026, with the integration of BTIG LLC expected to enhance capital markets capabilities and create cross-selling opportunities [9]

Core Viewpoint - U.S. Bancorp reported strong fourth-quarter 2025 results, exceeding both earnings and sales expectations, indicating robust financial performance and positive market sentiment [1][2]. Financial Performance - Adjusted earnings per share for the fourth quarter were $1.26, surpassing the analyst consensus estimate of $1.19 [1]. - Quarterly sales reached $7.337 billion, exceeding the expected $7.308 billion [1]. Revenue and Growth Forecast - The company reported record consumer deposits and effective balance sheet management, contributing to net interest income growth and margin expansion [2]. - U.S. Bancorp forecasts fiscal 2026 revenue between $29.85 billion and $30.42 billion, higher than Wall Street's expectation of $30.04 billion [2]. Stock Performance - Following the earnings announcement, U.S. Bancorp shares increased by 1.5%, trading at $55.16 [2]. Analyst Ratings and Price Targets - RBC Capital maintained an Outperform rating and raised the price target from $57 to $59 [4]. - DA Davidson maintained a Buy rating and increased the price target from $63 to $65 [4]. - Truist Securities kept a Hold rating and raised the price target from $58 to $61 [4]. - Keefe, Bruyette & Woods maintained a Market Perform rating and increased the price target from $58 to $59 [4].

Core Viewpoint - U.S. Bancorp is strategically expanding its capital markets capabilities through the acquisition of BTIG for up to $1 billion, which is expected to enhance its competitiveness in the banking sector [2][3]. Group 1: Acquisition Details - U.S. Bancorp will pay $725 million upfront for BTIG, with an additional $275 million contingent on performance over three years [3]. - The acquisition is set to close in the second quarter of 2026 and aims to diversify U.S. Bancorp's offerings beyond traditional banking [3]. Group 2: Market Position and Analyst Opinions - Piper Sandler analysts noted that while U.S. Bancorp has capital markets capabilities, they have historically been limited compared to peers, making this acquisition a significant step towards competitiveness [3]. - Keefe Bruyette views the acquisition as a modest positive for U.S. Bancorp, aligning with the company's strategy to grow its internal capital markets capabilities amid rising industry demand [4].

Core Viewpoint - U.S. Bancorp is strategically expanding its capital markets capabilities through the acquisition of BTIG for up to $1 billion, which is expected to enhance its competitiveness in the banking sector [2][3]. Group 1: Acquisition Details - U.S. Bancorp will pay $725 million upfront for BTIG, with an additional $275 million contingent on performance over three years [3]. - The acquisition is set to close in the second quarter of 2026 and aims to diversify U.S. Bancorp's offerings beyond traditional banking [3]. Group 2: Market Position and Analyst Opinions - Piper Sandler analysts noted that while U.S. Bancorp has capital markets capabilities, they have historically been limited compared to peers, making this acquisition a significant step towards competitiveness [3]. - Keefe Bruyette views the acquisition as a modest positive for U.S. Bancorp, highlighting the company's strategy to grow its internal capital markets capabilities amid rising industry demand [4].