US Bancorp (NYSE:USB) stock fell 1.57% (As on January 17, 11:22:08 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. Net income attributable to U.S. Bancorp was $847 million for the fourth quarter of 2023, which was $78 million lower than the $925 million for the fourth quarter of 2022 and $676 million lower than the $1,523 million for the third quarter of 2023. Net interest income decreased 4.2 percent on a year-over-year taxable-equivalent basis, due to the impact of higher interest rates on deposit mix and pricing, partially offset by the impact of the MUB acquisition and higher rates on earning assets. The net interest margin decreased to 2.78 percent in the fourth quarter of 2023 from 3.01 percent in the fourth quarter of 2022 driven by similar factors. Nonperforming assets were $1,494 million at December 31, 2023, compared with $1,310 million at September 30, 2023, and $1,016 million at December 31, 2022.
Moreover, average total loans for the fourth quarter of 2023 were $13.0 billion (3.6 percent) higher than the fourth quarter of 2022. The increase was driven by growth in the Company’s legacy loan portfolio as well as from the MUB acquisition, which are primarily reflected in commercial loans, commercial mortgages and residential mortgages. Increases in total commercial real estate loans (17.7 percent), residential mortgages (18.6 percent) and credit card loans (10.2 percent) were partially offset by lower total commercial loans (1.4 percent) and total other retail loans (23.6 percent). The increase in total commercial real estate loans and residential mortgages was driven by the acquisition of MUB. Average total deposits for the fourth quarter of 2023 were $20.9 billion (4.3 percent) higher than the fourth quarter of 2022, including the impact of the MUB acquisition.
USB in the fourth quarter of FY 23 has reported the adjusted earnings per share of 99 cents, beating the analysts’ estimates for the adjusted earnings per share of 71 cents. The company had reported the adjusted revenue growth of $6.88 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $6.85 billion.
On the other hand, U.S. Bancorp Impact Finance expanded its product offering through the facilitation of renewable energy tax credit transfers within the provisions of new Federal legislation. During the fourth quarter, this innovative business program completed $700 million of transferable renewable energy credits with several Fortune 1000 companies.