Minneapolis-based U.S. Bancorp on Wednesday posted better-than-expected third-quarter earnings as demand for commercial loans increased.

Net income for the quarter that ended September 30 totaled $908 million, or 45 cents per share, up 50 percent from $603 million, or 30 cents per share, in last year's third quarter.

Analysts polled by Thomson Reuters expected the company to earn 43 cents per share.

Third-quarter revenue increased nearly 8 percent to $4.6 billion from last year's third-quarter revenue of $4.3 billion.

Although total average loans, excluding acquisitions, were down slightly year-over-year, the company recorded an increase in average loans from the second quarter. Commercial and commercial real estate loans saw the biggest push during the quarter and brought in $12.1 billion of new commitments and $18.8 billion of commitment renewals.

U.S. Bank said that the third quarter was the first quarter in which it has seen an increase in average commercial loans since the fourth quarter of 2008.

“I would not exchange our position in the industry for any other,” U.S. Bancorp Chairman, President, and CEO Richard K. Davis said in a statement. “We are moving forward with a sense of optimism and enthusiasm, focused on growing our businesses, sustaining an engaged and performance-driven workforce that provides superior service to our customers, and communities and, importantly, creating long-term value for our shareholders.”

Shares of the company's stock were down 0.24 percent to $22.75 in Wednesday afternoon trading.

U.S. Bancorp is among Minnesota's 10-largest public companies based on its 2008 revenue, which totaled $14.7 billion. Revenue for its 2009 fiscal year totaled $16.7 billion.