U.S. Bancorp announced unaudited consolidated earnings results for fourth quarter and full year ended December 31, 2017. For the quarter, the company's total interest income was $3,740 million compared to $3,374 million a year ago. Income before income taxes was $1,311 million compared to $2,040 million a year ago. Net income applicable to the company common shareholders was $1,611 million compared to $1,391 million a year ago. Net income attributable to the company was $1,682 million compared to $1,478 million a year ago. Diluted per common share was $0.97 compared to $0.82 a year ago. Book value per common share was $26.34 compared to $24.63 a year ago. Return on average assets of 1.46% and return on average common equity of 14.7% (1.33% and 13.4%, respectively, excluding notable items). Net interest income was $3,144 million compared to $2,955 million a year ago.

For the year, the company's total interest income was $14,385 million compared to $13,167 million a year ago. Income before income taxes was $7,517 million compared to $8,105 million a year ago. Net income applicable to the company common shareholders was $5,913 million compared to $5,589 million a year ago. Net income attributable to the company was $6,218 million compared to $5,888 million a year ago. Diluted per common share was $3.51 compared to $3.24 a year ago. Book value per common share was $1.16 compared to $1.07 a year ago. Return on average assets was 1.39% compared to 1.36% a year ago. Return on average common equity was 13.8% compared to 13.4% a year ago. Net interest income was $12,241 million compared to $11,528 million a year ago.

For the fourth quarter of 2017, the company's total net charge-offs were $325 million, compared with $330 million in the third quarter of 2017, and $322 million in the fourth quarter of 2016. Net charge-offs increased $3 million (0.9%) compared with the fourth quarter of 2016 primarily due to higher total commercial real estate and credit card loan net charge-offs, mostly offset by lower total commercial loan net charge-offs driven by higher recoveries.

For the first quarter 2018, the company expects net interest income to increase at a mid-single-digit pace on a year-over-year basis. Due to the impact of day count, the company expects net interest income to be modestly lower on a linked-quarter basis, as is typically the case in the first quarter. The company expects fee income to increase at a low single-digit pace on a year-over-year basis. On a linked-quarter basis, fee income is typically lower in the first quarter due to seasonally lower credit card and merchant processing sales volumes and seasonally lower deposit service charges.

The company's effective rate in 2018 is expected to be approximately 16% for federal tax purposes plus 3% to 4% for state taxes or approximately 9% (sic) [19%] in total. The company expects its taxable-equivalent tax rates to decline to about 21.5%. The company expects to realize in business growth initiatives, including technology, innovation and business automation as well, as in the company's employees. Inclusive of these accelerated investments, the company expects to deliver positive operating leverage for the full year of 2018.