Average total savings deposits increased $3.7 billion at the bank in the quarter. Time deposits, accounts where deposits are locked up for a certain amount of time, grew 4.6% while money market savings grew 4.9% from the previous quarter. Year over year, average total savings deposits were up $18 billion, or 5.2%, while average time deposits were up $19.7 billion, or 55%, respectively, compared to the same quarter in 2023.
“We get a lot of inflow at the end of the quarter as people prepare for outflow payments and end of the month type payments,” Stern told analysts. “Sometimes they just hold it all the way through the tax season. That’s exactly what we’ve seen here. You get this kind of surge at the end of the quarter. It holds through tax day and then it starts to wind down and that’s been very seasonal. It’s just a bigger number than what we have typically seen.”
Overall, U.S. Bancorp reported net revenue of $6.7 billion and net income of $1.3 billion, or 78 cents per share. The bank also revised its fiscal 2024 net interest income from $16.6 billion to between $16.1 billion and $16.4 billion. The company’s shares on Tuesday lost nearly 4% of value.
Net interest income for the quarter was $4 billion, down from $4.6 billion in the year-ago quarter, but was within the company’s guidance, “albeit on the lower end of the range,” Cecere said.
“Loan and deposit growth remains under pressure for the industry, and that dynamic impacted our net interest income,” he said.
The bank recorded $155 million in merger costs related to the Union Bank acquisition, and a $110 million charge for the increase in the Federal Deposit Insurance Corp. special assessment to help replenish the government insurance fund used during the meltdown of Silicon Valley Bank and Signature Bank.
Source: startribune.com
