U.S. Bancorp credit card balances rose 11.5% year over year, while card net charge-offs declined from the second quarter.

U.S. Bancorp’s consumers continued to spend during the third quarter, even as the bank carried more card balances and saw an increase in early-stage card delinquencies.

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“Spend levels are high, employment is strong,” Chief Financial Officer John Stern told analysts during a Thursday (Oct. 15) earnings call when asked about the effect of higher interest rates on consumers. U.S. Bancorp did not see much change in consumer credit, and spending patterns remained strong “despite sentiment.”

Average credit card loans reached $40.2 billion, up 11.5% from a year earlier and 4.7% from the second quarter, according to an earnings presentation. Part of the sequential increase came from the acquisition of a small business credit card portfolio.

Credit card metrics were mixed. The net charge-off rate fell to 3.29% from 3.83% in the second quarter and 3.8% a year earlier. The 30-to-89-day delinquency rate, however, rose to 1.35% from 1.17% sequentially, which U.S. Bancorp attributed to acquisition onboarding and seasonality.

Across the company, average loans increased 8% year over year and 1% sequentially.

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S. Bancorp expands its consumer and small business franchises. 2% sequentially, with consumer deposits reaching another quarterly record.

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