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. 1
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. 2
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. 3
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. 4
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. 5
