U.S. Bancorp posts second-quarter declines

Net income for the quarter was $1.16 billion, compared to $1.2 billion in second-quarter 2006.

Diluted earnings per share were 65 cents, up 3.2 percent from 63 cents in the previous quarter but down 1.5 percent from 66 cents a year ago.

Return on average assets was 2.09 percent, down from 2.27 percent last year, and return on average common equity was 23 percent, down from 24.3 percent.

The Minneapolis-based financial holding company saw growth in fee income and reported strong credit quality metrics.

Nonperforming assets fell $17 million, or 2.9 percent, to $565 million, from $582 million in the first quarter but saw an increase from $550 million in second-quarter 2006.

U.S. Bancorp has $223 billion in assets and operates 2,499 banking offices in 24 states, including Missouri. Shares (NYSE: USB) closed Monday at $33.20 and were trading down at $32.96 as of 10 a.m. today.