U.S. Bancorp's second quarter earnings fell 18.5% compared with the year-earlier period as the company added to its loss reserves. U.S. Bancorp's net income for the second quarter fell to $950 million, compared with $1.16 billion in the second quarter of last year. Blaming "continued stress in residential real estate," the Minneapolis-based lender increased its provision for credit losses to $596 million in the second quarter of 2008, which was $111 million higher than the first quarter provision and $405 million higher than in the second quarter of 2007. The company said that declines in home and other collateral values will probably continue to push up charge-offs in the third quarter.
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