New York, Jan 22, 2026, 20:18 EST — Market closed
- Shares of U.S. Bancorp climbed 1.28% on Thursday, closing close to their 52-week peak
- The bank issued $1.25 billion in fixed-to-floating senior notes maturing in 2032
- The Fed’s Jan. 27-28 meeting stands as the next major trigger for bank stock movements
Shares of U.S. Bancorp (USB) climbed 1.28% to $56.18 on Thursday, marking a second consecutive gain and closing just shy of a 52-week high. The day’s trading volume more than doubled the 50-day average. USB outperformed Bank of America but fell short of Wells Fargo, as U.S. equities wrapped up the session higher. (MarketWatch)
The bank remains locked near its highs heading into Friday, a precarious position where even minor rate changes could trigger significant swings. For bank stocks, the coming week hinges on yields and funding.
U.S. Bancorp, a major regional lender with a strong payments and fee business, often serves as a gauge for deposit competition trends. Investors watch it closely, as its shares can react more to shifts in rate expectations than to the news itself.
A filing with the Securities and Exchange Commission dated Jan. 21 revealed the company priced $1.25 billion in fixed-to-floating senior notes maturing in 2032, due to settle on Jan. 26. The notes carry a 4.481% coupon through 2031. After that, the rate shifts to compounded SOFR — a key U.S. money-market benchmark — plus 86.7 basis points, or 0.867 percentage points. (SEC)
U.S. Bancorp posted a 23% surge in fourth-quarter profit to $2.05 billion, or $1.26 per share, on Tuesday. The boost came from higher interest income and increased fee revenue. Net interest income climbed 3.3% to $4.28 billion, while fees rose 7.6% to $3.05 billion. The bank projects revenue growth of 4% to 6% in 2026, excluding BTIG, which it plans to acquire for up to $1 billion. (Reuters)
The bank reported a net interest margin of 2.77%—the gap between loan earnings and deposit costs—and a common equity tier 1 capital ratio of 10.8% at year-end, according to its earnings filing with regulators. CEO Gunjan Kedia noted that “fee income exceeded our mid-single-digit growth target.” The filing also detailed a cross-border stablecoin pilot, testing a crypto token pegged to hold steady value. (Cloudfront)
Stocks trading near their highs don’t require much negative news to wobble. A sharper fall in market rates or fresh pressure on deposit pricing could tighten margins, and a shift in the credit cycle would push charge-offs higher.
Investors are turning their attention to the Federal Reserve’s policy meeting on Jan. 27-28, with the rate statement and press conference scheduled for Jan. 28. A change in the Fed’s outlook on inflation or growth could swiftly impact bank stocks, including U.S. Bancorp. (Federalreserve)
