New York, Jan 23, 2026, 14:55 EST — Regular session
- Shares of U.S. Bancorp fell roughly 1% in afternoon trading, following a wider decline across the banking sector.
- According to SEC filings, the lender priced $2.25 billion in fixed-to-floating senior notes this week.
- Next week’s Federal Reserve meeting has investors focused on the future of interest rates and the implications for bank margins.
U.S. Bancorp shares slipped 1.1% to $55.58 Friday afternoon, surrendering part of this week’s gains amid a broader pullback in U.S. bank stocks.
The pullback comes as investors brace for next week’s Fed meeting and its implications for banks’ net interest income — the difference between earnings on loans and costs on deposits.
Broader U.S. equities held steady, while bank stocks stumbled. The SPDR S&P Bank ETF dropped roughly 3%, and the SPDR S&P Regional Banking ETF fell about 3% in afternoon sessions.
U.S. Bancorp revealed in SEC filings that it priced two fixed-to-floating senior note tranches: $1.25 billion maturing in 2032 with a 4.481% coupon, and $1 billion due 2037 at 5.033%. The coupons start fixed, then switch to floating rates tied to compounded SOFR, plus spreads of 86.7 and 110.1 basis points, respectively (a basis point equals 0.01 percentage point). (Securities and Exchange Commission)
Regional banks took a hit after First Citizens BancShares forecast net interest income that missed Wall Street expectations, dragging the sector down. “Little good news from the financials today,” said Macrae Sykes, a portfolio manager at Gabelli Funds. A Truist analyst noted the “difficult adjustment to lower rates.” (Reuters)
U.S. Bancorp wrapped up Thursday at $56.18, hitting a high of $56.70 during the session. The volume reached roughly 22.47 million shares, more than twice what it’s seen so far on Friday. (Investing)
Earlier this week, the lender posted a fourth-quarter net income attributable to U.S. Bancorp of $2.045 billion, with diluted EPS hitting $1.26. It also announced plans to acquire BTIG, aiming to close the deal in the second quarter of 2026, pending regulatory approval. CEO Gunjan Kedia highlighted “record consumer deposits” as a key driver behind the rise in net interest income and margin expansion. (Q4 Capital Markets)
Shares of Wells Fargo slipped 1.3%, Bank of America fell 1.5%, and JPMorgan was down roughly 2% in afternoon trading as other big banks also took a hit.
The larger risk for the group remains Washington: President Donald Trump’s proposal to cap credit card interest rates at 10%. Kedia warned analysts that such a cap would harm customers, estimating “90 plus percent” would feel the pinch. KBW’s Sanjay Sakhrani described a negotiated compromise as the only “somewhat viable option.” (Reuters)
Investors now turn their attention to the Fed’s upcoming two-day policy meeting on Jan. 27-28. All eyes will be on Chair Jerome Powell’s press conference on Jan. 28 for clues on any changes to the rate outlook that might shake bank stocks. (Federalreserve)
