Inside the Morrison Center at Boise State University, CEO Richard Davis told shareholders that U.S. Bancorp profits rose 6.7 percent in 2013s first quarter compared with the same quarter in 2012, despite what he called tepid growth.
The bank earned $1.43 billion on net revenues of $4.87 billion. Revenues were down 1.1 percent from the same quarter last year, despite a 19 percent growth in residential mortgages.
Our (performance) reflected our companys continuing ability to perform against a backdrop of a slow-growth, uncertain economic environment, Davis said in a news release. Our returns continue to be among the best performance ratios in the industry and at the very top of our peer group.
Investors were not impressed. Earnings fell short of analysts predictions. The companys shares fell 59 cents, closing at $32.72.
The Minneapolis-based bank is the second largest in the Treasure Valley, measured by deposits, with 19 percent of the market. The company says it employs 1,380 people in Idaho, including 420 in the Treasure Valley. Davis told shareholders that both the bank and Idaho recently celebrated their 150th anniversaries, proof that the bank and the former territory grew up and prospered together.
Outside, about 60 protesters from Idaho and three other states gathered before the meeting began to protest U.S. Bancorps foreclosure practices and payday loans. Several protesters were allowed to go inside and voice their concerns.
Several said U.S. Bank acted unethically by financing lenders of high-interest payday loans, such as Moneytree.
One was Miranda Davis of Lewiston, a single mother who took three payday loans of $250 or less and who said she now owes more than $8,000 because she cant make payments.
You get trapped in a cycle of debt, she said.
Richard Davis responded by saying U.S. Bank would continue financing payday lenders operating within regulations.
Its America, he said. These (lenders) have to be allowed to do business.
U.S. Bancorp also makes its own payday loans.
Ann Haines, 41, of St. Paul, Minn., spoke about what she called misleading practices that led to U.S. Bank foreclosing on her home. Davis promised Haines an audience with a bank official who was in attendance.
Zach Kyle: 377-6464