U.S. Bancorp (USB) Tops Q3 Views On Record Revenue

October 21, 2009 7:34 AM EDT

U.S. Bancorp (NYSE: USB) reports Q3 EPS of $0.30, or $0.49 ex-items, better than the analyst estimate of $0.27. Revenue for the quarter was $4.3 billion, a record, which compares to the estimate of $4.13 billion.

The Company's results were impacted by three significant items, including $415 million of provision for credit losses in excess of net charge-offs, $76 million of net securities losses and a $39 million gain related to the Company’s investment in Visa Inc. (NYSE: V). These significant items, in total, reduced diluted earnings per common share by approximately $.19 in the third quarter of 2009.

Provision for credit losses exceeded net charge-offs by $415 million, or approximately 40 percent of net charge-offs for the quarter, resulting in an increase to the allowance for credit losses.

Net charge-offs and nonperforming assets increased, but the rate of growth moderated to 12.1 percent and 9.4 percent, respectively, on a linked quarter basis

Allowance to period-end loans increased to 2.72 percent at September 30, 2009, compared with 2.51 percent at June 30, 2009.

Allowance to nonperforming assets was 114 percent at September 30, 2009, and at June 30, 2009.

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