U.S. Bancorp (USB) said its first-quarter earnings fell 2.2% as the regional lender posted weaker mortgage banking revenue.
U.S. Bancorp and other regional banks have struggled with softer revenue from their mortgage businesses amid low interest rates and less demand for refinancing. Mortgage-banking revenue in the latest quarter fell 41% from a year earlier to $236 million.
U.S. Bancorp reported a profit of $1.4 billion, down from $1.43 billion. Per-share earnings were flat at 73 cents, due to fewer shares outstanding in the latest period. Revenue shrank 1.2% to $4.81 billion.
Analysts polled by Thomson Reuters had predicted earnings of 73 cents a share on revenue of $4.8 billion.
Like several of its peers, U.S. Bancorp continued to get a boost from stronger credit quality. Credit-loss provisions fell 24% from a year earlier to $306 million.
The regional bank, with more than 3,000 branches across the Midwest and West, this year struck a deal to double its Chicago-area presence by agreeing to buy 94 Chicago branches from RBS Citizens Financial Group Inc., and indicated it will continue to make acquisitions.