Events in D.C. are forcing a wave of increased deposits into the bank, says U.S. Bancorp (USB +2.1%) management on the earnings call (replay on Seeking Alpha) (presentation slides). It's not a huge issue, but is likely to cause net interest margin to be a basis point or two lower in Q4 than it otherwise would have been.
The trend is not your friend: Year-over-year revenue growth showed a decline of 5.6% in Q3 vs. a 2.4% decline in Q2, a 1.1% decline in Q1, and an 8% gain last year in Q3 (slide #5). Total loans on Sept. 30 are 5.7% higher than a year ago, while deposits are ahead 5.5%.
Credit quality paints a better picture: Net charge-offs as a percent of loans fell to 0.57% in Q3 from 0.99% a year ago, and the amount of net charge-offs fell to $328M from $538M.