U.S. Bancorp reports $1.18B third-quarter income

Third-quarter net income totaled $1.18 billion, up 1.7 percent from the second quarter but down 2.2 percent from the third quarter of 2006.

Earnings per share totaled 67 cents, up 3.1 percent from the second quarter and 1.5 percent from last year.

The company’s drop in net income compared to 2006 is attributed to higher operating expenses and an expected increase in credit costs, which offset fee-based revenue growth in the company’s payment services and wealth management and securities services divisions, according to a company news release.

“We are not immune to the challenges presented to us by the current environment,” said Richard K. Davis, U.S. Bancorp president and CEO, in the release, “but our results for the quarter and year-to-date support my belief that our company is well-positioned to produce a consistent, predictable and repeatable earnings stream for the benefit of our customers, communities, employees and shareholders.”

Total deposits for Minneapolis-based U.S. Bancorp as of Sept. 30 were $119.1 billion, while loans totaled $147.5 billion. Shares (NYSE: USB) closed Tuesday at $32.35, compared to a 52-week range of $29.09 to $36.85.