By PYMNTS | October 15, 2026
Highlights
U.S. Bancorp credit card balances rose 11.5% year over year, while card net charge-offs declined from the second quarter.
Consumer deposits reached a quarterly record, although total deposit costs increased.
U.S. Bank said third-party AI agents aren’t yet moving customer deposits.
U.S. Bancorp’s consumers continued to spend during the third quarter, even as the bank carried more card balances and saw an increase in early-stage card delinquencies.
“Spend levels are high, employment is strong,” Chief Financial Officer John Stern told analysts during a Thursday (Oct. 15) earnings call when asked about the effect of higher interest rates on consumers. U.S. Bancorp did not see much change in consumer credit, and spending patterns remained strong “despite sentiment.”
Average credit card loans reached $40.2 billion, up 11.5% from a year earlier and 4.7% from the second quarter, according to an earnings presentation. Part of the sequential increase came from the acquisition of a small business credit card portfolio.
Credit card metrics were mixed. The net charge-off rate fell to 3.29% from 3.83% in the second quarter and 3.8% a year earlier. The 30-to-89-day delinquency rate, however, rose to 1.35% from 1.17% sequentially, which U.S. Bancorp attributed to acquisition onboarding and seasonality.
Across the company, average loans increased 8% year over year and 1% sequentially.
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Deposits are receiving particular attention as U.S. Bancorp expands its consumer and small business franchises. Average deposits increased 2.9% year over year and 2.2% sequentially, with consumer deposits reaching another quarterly record. Deposit costs rose seven basis points from the second quarter, about two basis points of which management attributed to the September Federal Reserve rate increase.
Small business accounted for $45 billion in average deposits, up 2% year over year, and $18 billion in average loans, up 11%. U.S. Bancorp also onboarded the Amazon co-brand card portfolio during the quarter and expanded its Business Essentials products.
The earnings call extended the deposit discussion to artificial intelligence. Asked whether personal AI agents could automatically move cash among banks to seek better rates, CEO Gunjan Kedia said U.S. Bank has not encountered third-party AI cash-sorting agents.
“The logistics of doing something like this are very complicated, so we do not expect it to be a near-term impact to us,” Kedia said.
U.S. Bank’s existing digital tools already provide deposit price discovery and automated optimization options, according to Kedia, who added that the technology is already being used internally for productivity.
Shares were up 1.9% in late trading Thursday.
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