MINNEAPOLIS - U.S. Bancorp (NYSE: USB), the parent company of U.S. Bank, has completed the acquisition of Salucro Healthcare Solutions LLC, a healthcare financial technology company specializing in patient payments and billing. The deal, which was finalized on Wednesday, aims to enhance the bank’s services in the healthcare sector.
Salucro, established in 2004 and based in Tempe, Arizona, is recognized for its online billing and payment solutions used by healthcare providers nationwide. The company was already linked to U.S. Bank through Elavon, its merchant acquiring subsidiary, and U.S. Bank had made an initial investment in Salucro in 2022. The acquisition is expected to complement existing services offered by U.S. Bank and Elavon, including the MedEpay platform.
Shailesh Kotwal, vice chair of U.S. Bank Payment Services, stated that Salucro’s platform will integrate well with the bank’s current offerings, enhancing the bank's position in providing banking and payment services to the healthcare industry. The bank has a longstanding history of over a century in serving healthcare clients, including hospital systems, insurers, and medical practices.
The acquisition will see Salucro’s team members join U.S. Bank and become part of Elavon, one of the world's leading payment processors. The financial terms of the acquisition have not been disclosed.
U.S. Bancorp, headquartered in Minneapolis, boasts more than 70,000 employees and $680 billion in assets as of June 30, 2024. It provides a wide array of services such as consumer and business banking, commercial and institutional banking, payments, and wealth management. The company has recently been acknowledged for its digital innovation, community partnerships, and customer service, including being named one of the World’s Most Ethical Companies and Fortune’s most admired superregional bank in 2024.
This acquisition is based on a press release statement and aligns with U.S. Bank’s strategy to expand its focus on the healthcare industry, aiming to streamline financial transactions for healthcare providers and patients alike.
In other recent news, U.S. Bancorp has reported its second-quarter results for 2024, indicating a stable financial position with strategic plans for growth. The company revealed a slight increase in diluted earnings per share to $0.97, and after accounting for a special FDIC assessment, the adjusted earnings per share stood at $0.98. The bank also reported growth in net interest income and fee income, alongside a rise in return on tangible common equity to 18.6% on an adjusted basis.
Cost management initiatives contributed to a decrease in non-interest expenses, while credit quality remained stable. Average total deposits and tangible book value per share saw an increase. The bank anticipates stable net interest income in Q3 with modest loan growth and expects mid-single-digit growth in non-interest income for the full year.
CEO Andrew Cecere highlighted the bank's focus on investing in the business, dividends, and buybacks. These developments are part of recent news and are expected to shape the future operations of U.S. Bancorp.
InvestingPro Insights
As U.S. Bancorp (NYSE: USB) fortifies its presence in the healthcare payment solutions sector with the acquisition of Salucro, investors and stakeholders may find the following metrics and tips from InvestingPro particularly illuminating.
InvestingPro data shows a stable market capitalization for U.S. Bancorp at $68.19 billion, reflecting the bank's substantial size and influence in the financial industry. The company's Price to Earnings (P/E) ratio stands at 13.83, with an adjusted P/E ratio for the last twelve months as of Q2 2024 at a slightly lower 12.74. This indicates a reasonable valuation relative to earnings, which could be attractive to value investors. Additionally, the bank has demonstrated consistent revenue growth, with a 4.12% increase over the last twelve months leading up to Q2 2024, showcasing its ability to expand its financial base amidst its strategic initiatives.
Two InvestingPro Tips highlight U.S. Bancorp's commitment to shareholder returns: the company has not only raised its dividend for 13 consecutive years, but it has also maintained dividend payments for an impressive 54 consecutive years, signaling a strong track record of financial stability and shareholder commitment. This is further bolstered by a notable dividend yield of 4.49% as of the latest data, which is competitive within the industry and underscores the bank's appeal to income-focused investors.
For investors seeking more insights, InvestingPro offers additional tips on U.S. Bancorp, which can be accessed through their dedicated page for the company at https://www.investing.com/pro/USB. These tips provide deeper analysis and could offer valuable guidance for those looking to make informed investment decisions in the banking sector.
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