U.S. Bancorp surged after the Federal Reserve released it from a commitment to meet requirements for larger banks by the end of next year.

Regulators said the regional lender no longer must satisfy requirements for Category II financial institutions, which the bank had committed to do following its acquisition of MUFG Union Bank last year.

Shares of the Minneapolis-based bank rose 5.1% to $34.27 at 2:57 p.m. in New York, after jumping 11% earlier Tuesday.

A Category II designation would have brought stricter liquidity requirements, an annual rather than biennial company-run stress test, and a more complex methodology for determining its capital requirements.

Category II is meant for institutions with at least $700 billion of assets. U.S. Bancorp had $680 billion as of June 30, according to the company.