The largest regional lender in the U.S., U.S. Bancorp said its profit had fallen 3.1% during the quarter as its provisions for poor loans surged by 25%, driven by the jump in its downgrades to credits related to energy.

Net income was down to just over $1.39 billion equal to 76 cents per share compared to last year during the same quarter of $1.43 billion equal to 76 cents per share.

Analyst estimates were for profit per share to reach 76 cents.

The price of oil has plunged over 60% since its peak in June of 2014, forcing banks to put aside provisions in the billions of dollars to cover any possible bad loans to the energy industry.

In March, S&P said that regional banks in the U.S. could suffer severe losses if the prices of oil continued to drop. Richard Davis the CEO at U.S. Bancorp had been relying on fees from its credit cards and financing of autos to boost its earnings.

Davis, in a prepared statement said that despite the energy industry pressures negatively impacting the bank’s quarter, the company took the appropriate measures and remains confident it is well positioned to be able to continue delivering returns that are industry leading throughout 2016.

Credit loss provisions increased from $264 million during the same period last year to $330 million. At the same time, commercial non-performing energy related assets increased from last year’s fourth quarter by $257 million.

Reserves for the energy sector increased to over 9.1% of the outstanding balances from the end of December’s 5.4%.

Loans at U.S. Bancorp to businesses that are energy related were up to $3.4 billion as of the end of March, which is about 3% of the total loan portfolio outstanding.

Revenue was up 2.7% to over $5.04 billion. At the same time, expenses were up 3.2% to end the quarter at $2.75 billion.

Shares of U.S. Bancorp were down 1.8% through the end of business on Tuesday, as compared to a drop of 6.4% of the 24 companies in the KBW Bank Index.

PNC Financial Services the second largest regional bank in the U.S. reported profit last week that did to meet estimates of analysts.

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