U.S. Bancorp’s Earnings Decline

U.S. Bancorp’s fourth-quarter earnings report shows a slip of 1.1 percent in operating earnings because of merger costs.

Net income fell to $288.9 million, or $1.16 a diluted share, from S292.1 million, or $1.15 a diluted share, from the same quarter last year.

Earnings from the most recent quarter reflected $71.4 million in charges for the acquisition of U.S. Bancorp by the Minneapolis-based First Bank System.

The acquisition was completed Aug. 1, and an additional $125 million in merger-related expenses are expected in the next three quarters. Net income rose .8 of a percent to 784.7 million, up from $778.1 million a year earlier.

For the year U.S. Bancorp’s net income fell 31.2 percent to $838.5 million, or $3.34 a share, down from $1.22 billion, or $4.72 a share.