Richard Davis, CEO at U.S. Bancorp, said that the company's total loan portfolio likely would continue to shrink in the second quarter and that it could be several months before loan growth started to strengthen. "The current environment is very challenging, it's uncertain," he said. "We'll deal with it." Mr. Davis noted that borrowing demand among corporate and middle-market customers had increased. Mr. Davis also said regulatory changes were complicating business for the nation's banks.