U.S. Bancorp's net income rose 14 percent in the third quarter as the regional bank made more loans to companies and people seeking mortgages.

The bank, the second-largest in the Treasure Valley based on deposits, has 420 employees in the Valley and more than 1,300 statewide.

It reported strong increases in fee and interest income in the quarter ended Sept. 30.

Net income available to common shareholders rose to $1.40 billion, or 74 cents per share, for the quarter ended Sept. 30 from $1.24 billion, or 64 cents per share, in the same period a year earlier.

Net interest income rose 6 percent to $2.78 billion from $2.62 billion. Net interest income combines interest on loans that the bank collects and interest on deposits and debt that the bank pays out. It is a measure of the bank's ability to profit from its lending.

The growth in net interest income is a mark of U.S. Bancorp's strength. Many of its peers are seeing interest income whittled away by ultra-low interest rates and competition for depositors.

Noninterest income rose 11 percent, to $2.40 billion from $2.17 billion in the same period a year earlier. The category includes fees and other revenue lines.

U.S. Bancorp's total net revenue rose 8 percent, to $5.18 billion from $4.80 billion in the third quarter of 2011.

Strong growth in mortgage lending helped boost the company's fee income and expand its balance sheet. Mortgage banking revenue more than doubled, to $519 million from $245 million a year ago.

The average value of residential mortgages owned by U.S. Bancorp leapt 20 percent, to $40.97 billion from $34.03 billion a year earlier. Commercial lending increased even more.

Credit card and debit card revenue plunged by 26 percent because of new limits on what banks can charge to retailers that swipe customers' debit cards.

The earnings were in line with Wall Street's expectations, while the revenue outpaced them. On average, analysts surveyed by FactSet anticipated earnings of 74 cents per share on revenue of $5.15 billion.

U.S. Bancorp is the eighth-biggest American bank by asset size. It offers checking and savings accounts, holds billions in consumer and commercial loans and provides specialized financing for agriculture and equipment. Among its other business liens are private banking, financial advisory, investment management and brokerage services. As of June 30, it operated 3,080 banking offices in 25 states and 5,085 ATMs.