NEW YORK (Standard&Poor's) July 16, 2014--U.S. Bancorp's (USB) second-quarter performance was good, in our view, and in line with our expectations as the company generated steady net income of $1.5 billion and a very solid 1.60% return on average assets. Net interest income increased slightly, as moderately strong loan growth more than offset continued net interest margin (NIM) compression. Excluding a nonrecurring item, non-interest income declined slightly because higher fees across USB's banking and processing businesses were more than offset by lower mortgage banking revenue. Asset quality, liquidity, and capital remained strong, as Standard&Poor's Ratings Services expected. Overall, USB continues to generate peer-leading financial results, which are supportive of the rating. Based on these results, our
