U.S. Bancorp reports 14.1% drop in net income

The quarter’s net income was $942 million, compared to $1.19 billion in the same period a year before. Earnings per share for the quarter ended Dec. 31 were 53 cents, down 19.7 percent from 66 cents per share a year earlier.

Officials say the quarter’s financials were impacted by $215 million in litigation costs in a contingent obligation to Visa and $107 million in valuation losses related to securities purchased from certain money market funds, according to a company news release.

“During the fourth quarter, our company, as well as our peers in the financial services industry, continued to operate in a very challenging economic environment,” President, CEO and chairman Richard K. Davis said in a news release. “Given those challenges, I am especially proud of our company’s fourth-quarter results.”

Net income for 2007 was $4.3 billion, down 9 percent from $4.75 billion the previous year. The year’s earnings per share were $2.43, down 6.9 percent from $2.61 in 2006.

Total nonperforming assets were $690 million as of Dec. 31, compared with $641 million as of Sept. 30 and $587 million as of Dec. 31, 2006.

Shares (NYSE: USB) closed Wednesday at $32.70, compared to a 52-week range of $27.86 to $36.84.