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). 1
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.” 2
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. 3
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. 4
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.” 5
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. 6
