Fee income rose 50%, to $617 million, thanks to the credit card, trust, and investment management areas. The Minneapolis company also benefited from investment banking fees from Piper Jaffray Cos., acquired this year.

Excluding one-time gains and losses, noninterest income rose 54%.

The company took merger-related charges of $41 million after taxes related to the Piper Jaffray acquisition and the year-ago acquisition of U.S. Bancorp of Portland, Ore. (The acquirer, First Bank System, adopted the U.S. Bancorp name.) The company said another $15 million in charges related to the U.S. Bancorp merger would be taken in the fourth quarter and charges related to Piper Jaffray that add up to about $15 million would be taken over the next four quarters.

U.S. Bancorp chief executive officer John F. Grundhofer said loan growth in western states has been slower than expected. Net interest income was flat at $779 million, surprising some analysts.

James Schutz, an analyst with ABN Amro Inc., said fee growth was good and operating expenses were under control. He saw loan growth as the only surprise. The $74 billion company said loan growth in the West was affected by integration of its merger.

"The western economy is more influenced by what's going on in Asia," said Mr. Duwan.

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