How did USB's Q4 earnings surprise impact investor sentiment?

**U.S. Bancorp's (USB) Q4 earnings report did not yield any earnings surprises**, as no results for positive or negative surprises were found in the search results. However, we can infer the impact of the reported earnings on investor sentiment based on the available data.

1. **Robust Net Interest Income Growth**: USB's report of strong growth in net interest income, driven by improved spread income and a favorable loan mix, would typically be viewed positively by investors. This indicates the bank's ability to generate income from its core lending activities, which is a key metric for profitability.
2. **Deposit and Loan Challenges**: The reported decrease in total average deposits and average loans, along with challenges in deposit growth and muted industry loan growth, could be seen as negative points. Investors might be concerned about the sustainability of income growth if deposit and loan volumes continue to decline.
3. **Efficiency Ratio Improvement**: The improvement in the efficiency ratio to 60.2% suggests better cost management, which is generally viewed favorably by investors as it indicates the bank is becoming more efficient.
4. **Tangible Book Value Per Share Increase**: The increase in tangible book value per share, reflecting strong financial health, would likely contribute to positive investor sentiment.
5. **Charge-Off Ratio Increase**: A slight increase in the net charge-off ratio to 0.60% indicates a rise in credit losses, which could raise concerns among investors about the bank's asset quality.
6. **Noninterest Income Impact**: The inclusion of $119 million in net security losses related to rebalancing activity within the investment portfolio might raise concerns about the bank's investment strategy and the potential for further losses.
7. **Service Charge Decrease**: The decrease in service charges, partly due to the exit from the ATM cash provisioning business, could be seen as a negative, as it might impact the bank's noninterest income.

In conclusion, while USB's Q4 earnings report did not yield any surprises, the overall tone of the earnings call and the financial metrics suggest that investor sentiment is likely to be mixed. The positive points, such as strong net interest income growth and efficiency ratio improvement, would likely be viewed positively, while the challenges in deposit and loan growth, along with the increase in charge-offs and security losses, could raise concerns among investors. The impact on the stock price would also depend on how these factors are weighed against each other and how they compare to investor expectations.