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U.S. Bancorp (NYSE: USB) reported $974 million for the fourth quarter of 2010 as well as 9.9% new lending activity compared to the fourth quarter of 2009, but leasing was down in all its divisions, according to the 8K SEC filing.

Construction and land development loans are being written off and problems exist in the residential mortgage portfolio- as with many other banks. Foreclosures continue and home sales are soft.

...there was continued stress in the residential mortgage portfolio, as well as an increase in foreclosed properties compared with a year ago, due to the overall duration of the economic slowdown. Covered nonperforming assets were $1,697 million at December 31, 2010, $1,851 million at September 30, 2010, and $2,003 million at December 31, 2009. The majorities of the nonperforming covered assets were considered credit-impaired at acquisition and were recorded at their estimated fair value at the date of acquisition. The ratio of the allowance for credit losses to period-end loans, excluding covered loans, was 3.03 percent at December 31,2010...The Company expects total nonperforming assets, excluding covered assets, to continue to trend lower in the first quarter of 2011.

Pages 7 & 8 US Bancorp Reports Fourth Quarter 2010 Results (Click to enlarge)

Page 9 US Bancorp Reports Fourth Quarter 2010 Results

Compare 4th Quarter 2009 with 4th Quarter 2010 Lease Financing: (Click to enlarge)

Page 15 US Bancorp Reports Fourth Quarter 2010 Results

Capital did remain steady, slightly improving, as well as the Tier 1 capital, despite the write-downs. Compensations are up, (in millions: 4Q $999, 3Q $973, 4Q 2009 $816 (page 12)) which are definite signs of improvement in bank personnel performance.

Click to enlarge:

Page 19 US Bancorp Reports Fourth Quarter 2010 Results

Complete 68 pages SEC filing here.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: U.S. Bancorp Earnings: Leasing Down in All Divisions