10 Best Local Bank Stocks to Buy

2. U.S. Bancorp (NYSE:USB)

Number of Hedge Fund Investors: 46

U.S. Bancorp (NYSE:USB) is headquartered in Minnesota offering financial services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions in the US. USB has announced a new CEO in Gunjan Kedia and El-Yafi as the new lead for its Global Transaction Services business.

U.S. Bancorp (NYSE:USB) reported Q4 EPS of $1.07, beating analysts’ expectations of $1.05 even though the revenue fell short of expectations. Analysts at Goldman Sachs expect net interest income to grow by 3% primarily due to strong loan growth in the second half of 2025. USB generated an 18.3% return on tangible equity amidst a lower efficiency ratio of 60%. The adjusted CET1 ratio is 8.6% which is above the current regulatory requirement but it is below the 10% target for Category II banks. U.S. Bancorp (NYSE:USB) is expected to slow down on buybacks in a bid to improve its capital ratio and achieve the Category II target by 2027.