U.S. Bancorp · Earnings release

1Q25 Key Financial Data

1Q25 Financial Highlights

PROFITABILITY METRICS

•Net income of $1,709 million and diluted earnings per common share of $1.03

•Return on tangible common equity of 17.5%, return on average assets of 1.04%, and efficiency ratio of 60.8%

•Positive operating leverage of 270 basis points on a year-over-year basis, as adjusted for notable items in the first quarter of 2024

•Net revenue of $6,958 million, an increase of 3.6% year-over-year, including an increase of 2.7% in net interest income on a taxable-equivalent basis and an increase of 5.0% in noninterest income

•Net interest margin of 2.72%, an increase of 2 basis points on a year-over-year basis and a 1 basis point increase on a linked quarter basis

•Noninterest expense increase of 0.9% on a year-over-year basis and 0.7% on a linked quarter basis, as adjusted for notable items in the prior quarters

•Average total loans increased 2.1% on a year-over-year basis and 0.9% on a linked quarter basis

Return on average assets (%)

Return on average common equity (%)

Return on tangible common equity (%) (a)

Net interest margin (%)

Efficiency ratio (%) (a)

Tangible efficiency ratio (%) (a)

INCOME STATEMENT (b)

Net interest income (taxable-equivalent basis)

Noninterest income

Noninterest expense

Net income attributable to U.S. Bancorp

Diluted earnings per common share

Dividends declared per common share

BALANCE SHEET (b)

Average total loans

Average total deposits

Net charge-off ratio (%)

Book value per common share (period end)

Basel III standardized CET1 (%) (c)

(a) See Non-GAAP Financial Measures reconciliation on page 18

(b) Dollars in millions, except per share data

(c) CET1 = Common equity tier 1 capital ratio

CEO Commentary

"In the first quarter we reported diluted earnings per share of $1.03 and delivered a return on tangible common equity of 17.5%. We managed expenses with discipline and delivered 270 basis points of positive operating leverage on an adjusted basis – our third consecutive quarter of year-over-year growth in revenues outpacing expenses. Total net revenue of approximately $7.0 billion was supported by slight margin expansion and year-over-year growth in fee revenue of 5%. Importantly, asset quality and capital levels are strong. This quarter, our net charge-off ratio improved modestly and common equity tier 1 capital ratio increased by 20 basis points to 10.8%. As we navigate macro economic uncertainties, we will continue to manage the bank with strong risk management capabilities.

As I step into the role as Chief Executive Officer, I am excited to lead this exceptional banking franchise and confident in our ability to deliver strong and consistent financial results. I would like to thank my U.S. Bank colleagues for their dedication to our company. As we collectively mourn the loss of our dear friend and colleague, Terry Dolan, the U.S. Bank family truly appreciates the outpouring of support and heartfelt condolences we’ve received from far and wide. Our prayers continue to be with his family and friends during this most difficult time.

Finally, on behalf of the U.S. Bank team, I want to thank Andy Cecere for his 40+ years of thoughtful, dedicated, and steady leadership."

— Gunjan Kedia, President and CEO, U.S. Bancorp

Business and Other Highlights

U.S. Bank personal loans now available through State Farm

In the latest expansion of the State Farm and U.S. Bank alliance, State Farm customers can now apply for U.S. Bank personal loans for up to $50,000 working directly with their agent. To date, more than 900,000 State Farm customers have accessed a suite of U.S. Bank products including deposits, co-branded credit cards and business banking products and services. This is the latest expansion of the collaboration between U.S. Bank and State Farm, which began in 2020.

U.S. Bank introduces Spend Management for business owners

U.S. Bank has introduced a new Spend Management platform to help businesses monitor, track and control their card-based spending. This all-in-one platform is available through the bank’s full portfolio of business credit cards, giving business owners an alternative to using multiple tools. Spend Management gives owners the ability to easily manage how employees use cards.

U.S. Bank Shield™ Visa® card offers 0 percent intro APR for 24 billing cycles

U.S. Bank announced the launch of the U.S. Bank Shield™ Visa® Card, a no annual fee card that provides great value for consumers. The card offers a market-leading introductory 0% APR on purchases and balance transfers for the first 24 billing cycles, and a variable APR thereafter. The card also includes an array of purchase protection and cash-back benefits.

U.S. Bank introduces all-in-one business checking plus payments acceptance

U.S. Bank has launched a premier all-in-one checking account combined with payments acceptance capabilities for small businesses, called Business Essentials. The account enables businesses to accept credit card payments with free same-day access to their funds and a free mobile card reader, in addition to checking with unlimited digital transactions and no monthly maintenance fee.

Investor contact: George Andersen, George.Andersen@usbank.com | Media contact: Jeff Shelman, Jeffrey.Shelman@usbank.com

U.S. Bancorp First Quarter 2025 Results

INCOME STATEMENT HIGHLIGHTS

($ in millions, except per share data)

ADJUSTED (a) (b)

Percent Change

Percent Change

Net interest income

Taxable-equivalent adjustment

—

—

—

—

Net interest income (taxable-equivalent basis)

Noninterest income

.1

.1

Total net revenue

(.7)

(.7)

Noninterest expense

.7

.9

Income before provision and income taxes

Provision for credit losses

Income before taxes

Income taxes and taxable-equivalent adjustment

Net income

Net (income) loss attributable to noncontrolling interests

(7)

(7)

(7)

—

—

(7)

(7)

(7)

—

—

Net income attributable to U.S. Bancorp

Net income applicable to U.S. Bancorp common shareholders

Diluted earnings per common share

(a)4Q24 excludes $109 million ($82 million net-of-tax) of notable items related to lease impairments and operational efficiency actions. 1Q24 excludes $265 million ($199 million net-of-tax) of notable items including: $155 million of merger and integration-related charges and a $110 million charge for the increase in the FDIC special assessment.

(b)See Non-GAAP Financial Measures reconciliation beginning on page 18.

Net income attributable to U.S. Bancorp was $1,709 million for the first quarter of 2025, $390 million higher than the $1,319 million for the first quarter of 2024 and $46 million higher than the $1,663 million for the fourth quarter of 2024. Diluted earnings per common share was $1.03 in the first quarter of 2025, compared with $0.78 in the first quarter of 2024 and $1.01 in the fourth quarter of 2024. The first quarter of 2024 included notable items of $199 million or ($0.12) per diluted common share. The fourth quarter of 2024 included notable items of $82 million or ($0.06) per diluted common share. Excluding the impact of prior period notable items, net income attributable to U.S. Bancorp for the first quarter of 2025 was $191 million higher than the first quarter of 2024 and $36 million lower than the fourth quarter of 2024.

The increase in net income attributable to U.S. Bancorp year-over-year was primarily due to higher total net revenue, lower noninterest expense and lower provision for credit losses. Excluding notable items in the prior year quarter, net income attributable to U.S. Bancorp in the first quarter of 2025 increased 12.6 percent compared with the first quarter of 2024. Net interest income increased 2.7 percent on a year-over-year taxable-equivalent basis, due to the mix of earning assets, fixed asset repricing and modest loan growth, partially offset by deposit mix. The net interest margin increased to 2.72 percent in the first quarter of 2025 from 2.70 percent in the first quarter of 2024, driven by factors described above, partially offset by higher average earning assets.

Noninterest income increased 5.0 percent compared with a year ago driven by higher payment services revenue, trust and investment management fees, and other revenue. Noninterest expense decreased 5.1 percent primarily due to lower compensation and employee benefits and the notable items in the prior year quarter, partially offset by higher marketing and business development expense, technology and communications expense and other noninterest expense. Excluding notable items in the prior year quarter, noninterest expense in the first quarter of 2025 increased 0.9 percent compared with the first quarter of 2024. The provision for credit losses decreased $16 million (2.9 percent) compared with the first quarter of 2024, largely driven by improved credit quality and portfolio mix.

2

U.S. Bancorp First Quarter 2025 Results

Net income attributable to U.S. Bancorp increased on a linked quarter basis primarily due to lower noninterest expense driven by notable items in the fourth quarter of 2024 and lower provision for credit losses, partially offset by a decrease in total net revenue. Excluding notable items in the fourth quarter of 2024, net income attributable to U.S. Bancorp in the first quarter of 2025 decreased 2.1 percent on a linked quarter basis. Net interest income decreased 1.3 percent on a linked quarter taxable-equivalent basis primarily driven by fewer days in the quarter and deposit seasonality. The net interest margin increased to 2.72 percent in the first quarter of 2025 from 2.71 percent in the fourth quarter of 2024, driven by lower average earning assets.

Noninterest income in the first quarter of 2025 increased 0.1 percent from the fourth quarter of 2024 primarily due to higher mortgage banking revenue and capital markets revenue, partially offset by lower payment services revenue and lower trust and investment management fees. Noninterest expense in the first quarter of 2025 decreased by 1.8 percent from the fourth quarter of 2024 primarily due to fourth quarter 2024 notable items and lower professional services expense, partially offset by higher compensation and employee benefits expense, marketing and business development expense, and other noninterest expense. Excluding notable items in the fourth quarter of 2024, noninterest expense increased 0.7 percent on a linked quarter basis. The provision for credit losses decreased $23 million (4.1 percent) compared with the fourth quarter of 2024, largely driven by lower commercial real estate net charge-offs.

3

U.S. Bancorp First Quarter 2025 Results

NET INTEREST INCOME

(Taxable-equivalent basis; $ in millions)

Change

Components of net interest income

Income on earning assets

$

$

$

$

$

Expense on interest-bearing liabilities

Net interest income

$

$

$

$

$

Average yields and rates paid

Earning assets yield

%

%

%

%

%

Rate paid on interest-bearing liabilities

Gross interest margin

%

%

%

%

%

Net interest margin

%

%

%

%

%

Average balances

Investment securities (a)

$

$

$

$

$

Loans

Interest-bearing deposits with banks

Other earning assets

Earning assets

Interest-bearing liabilities

(a) Excludes unrealized gain (loss)

Net interest income on a taxable-equivalent basis in the first quarter of 2025 was $4,122 million, an increase of $107 million (2.7 percent) from the first quarter of 2024. The increase was primarily due to the mix of earning assets, fixed asset repricing and modest loan growth, partially offset by deposit mix. Average earning assets were $14.1 billion (2.4 percent) higher than the first quarter of 2024, reflecting increases of $9.9 billion (6.2 percent) in average investment securities due to balance sheet repositioning and liquidity management, $8.0 billion (2.1 percent) in average total loans and $3.5 billion (32.4 percent) in other earning assets, partially offset by a decrease of $7.2 billion (14.1 percent) in average interest-bearing deposits with banks.

Net interest income on a taxable-equivalent basis decreased $54 million (1.3 percent) on a linked quarter basis primarily driven by fewer days in the quarter and deposit seasonality. Average earning assets were $4.0 billion (0.7 percent) lower on a linked quarter basis, reflecting decreases of $6.6 billion (13.2 percent) in average interest-bearing deposits with banks and $1.2 billion (39.4 percent) in loans held for sale, partially offset by an increase of $3.4 billion (0.9 percent) in average total loans.

The net interest margin in the first quarter of 2025 was 2.72 percent, compared with 2.70 percent in the first quarter of 2024 and 2.71 percent in the fourth quarter of 2024. The increase in the net interest margin from the prior year was driven by factors mentioned above, partially offset by higher average earning assets. The increase in the net interest margin from the prior quarter was driven by lower average earning assets.

4

U.S. Bancorp First Quarter 2025 Results

AVERAGE LOANS

($ in millions)

Percent Change

Commercial

Lease financing

(.1)

.8

Total commercial

Commercial mortgages

Construction and development

Total commercial real estate

Residential mortgages

.4

Credit card

(.1)

Retail leasing

Home equity and second mortgages

.7

Other

Total other retail

Total loans

.9

Average total loans for the first quarter of 2025 were $8.0 billion (2.1 percent) higher than the first quarter of 2024. The increase was primarily due to higher total commercial loans (7.2 percent), residential mortgages (2.8 percent) and credit card loans (5.2 percent), partially offset by lower total commercial real estate loans (7.8 percent) and total other retail loans (4.4 percent). The increase in commercial loans was primarily due to growth in loans to financial institutions. The increase in residential mortgages was primarily driven by originations. The increase in credit card loans was primarily driven by customer account growth and higher spend volume. The decrease in commercial real estate loans was primarily due to loan workout activities and payoffs exceeding a reduced level of new originations. The decrease in other retail loans was primarily due to lower automobile loans.

Average total loans were $3.4 billion (0.9 percent) higher than the fourth quarter of 2024. The increase was primarily due to higher total commercial loans (3.5 percent) and residential mortgages (0.4 percent), partially offset by lower total commercial real estate loans (2.0 percent) and total other retail loans (1.9 percent). Linked quarter changes were primarily driven by similar factors as the year-over-year changes.

5

U.S. Bancorp First Quarter 2025 Results

AVERAGE DEPOSITS

($ in millions)

Percent Change

Noninterest-bearing deposits

Interest-bearing savings deposits

Interest checking

.4

.5

Money market savings

(.5)

Savings accounts

Total savings deposits

(.4)

Time deposits

.6

Total interest-bearing deposits

(.6)

Total deposits

.7

Average total deposits for the first quarter of 2025 were $3.5 billion (0.7 percent) higher than the first quarter of 2024. Average noninterest-bearing deposits decreased $5.1 billion (6.0 percent) reflecting balance decreases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking. Average total savings deposits were $8.2 billion (2.3 percent) higher year-over-year driven by increases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking. Average time deposits were $358 million (0.6 percent) higher than the first quarter of 2024 mainly within Consumer and Business Banking, partially offset by decreases within Wealth, Corporate, Commercial and Institutional Banking. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics.

Average total deposits decreased $5.8 billion (1.1 percent) from the fourth quarter of 2024. Average noninterest-bearing deposits decreased $3.2 billion (3.9 percent) reflecting balance decreases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking. Average total savings deposits decreased $1.5 billion (0.4 percent) driven by decreases within Wealth, Corporate, Commercial and Institutional Banking, partially offset by increases in Consumer and Business Banking. Average time deposits were $1.1 billion (1.9 percent) lower on a linked quarter basis due to decreases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking.

6

U.S. Bancorp First Quarter 2025 Results

NONINTEREST INCOME

($ in millions)

Percent Change

Card revenue

Corporate payment products revenue

Merchant processing services

Trust and investment management fees

Service charges

.3

—

Capital markets revenue

Mortgage banking revenue

Investment products fees

—

Securities gains (losses), net

—

(1)

2

nm

nm

Other

Total noninterest income

.1

First quarter noninterest income of $2,836 million was $136 million (5.0 percent) higher than the first quarter of 2024. The increase was driven by higher payment services revenue, trust and investment management fees and other revenue. Payment services revenue increased $25 million (2.6 percent) compared with the first quarter of 2024, primarily due to increases across all categories due to business volume growth. Card revenue was impacted by a reduction in prepaid card volumes from a year ago. Trust and investment management fees increased $39 million (6.1 percent) driven by business growth and favorable market conditions. Other revenue increased $63 million (47.0 percent) due to higher tax credit investment activity and the impact of other favorable items.

Noninterest income was $3 million (0.1 percent) higher in the first quarter of 2025 compared with the fourth quarter of 2024. The increase was driven by higher mortgage banking revenue and capital markets revenue. Mortgage banking revenue increased $57 million (49.1 percent) primarily driven by the change in fair value of mortgage servicing rights, net of hedging activities. Capital markets revenue increased $18 million (4.9 percent) mainly due to higher corporate bond fees, partially offset by lower customer-related derivative activity. Partially offsetting these increases were lower payment services revenue, trust and investment management fees and other revenue. Payment services revenue decreased $41 million (3.9 percent) compared with the fourth quarter of 2024, primarily due to a decrease in card revenue of $35 million (8.1 percent) due to seasonally lower spend volume.

Trust and investment management fees decreased $23 million (3.3 percent) due to less favorable market conditions than the fourth quarter of 2024. Other revenue decreased $10 million (4.8 percent) principally driven by seasonally lower tax credit investment activity.

7

U.S. Bancorp First Quarter 2025 Results

NONINTEREST EXPENSE

($ in millions)

Percent Change

Compensation and employee benefits

Net occupancy and equipment

Professional services

Marketing and business development

Technology and communications

(.2)

Other intangibles

Other

Total before notable items

.7

.9

Notable items

—

nm

nm

Total noninterest expense

First quarter noninterest expense of $4,232 million was $227 million (5.1 percent) lower than the first quarter of 2024. Excluding notable items of $265 million in the first quarter of 2024, first quarter of 2025 noninterest expense increased $38 million (0.9 percent) compared with the first quarter of 2024. The increase was driven by higher marketing and business development expense, technology and communications expense, and other noninterest expense, partially offset by lower compensation and employee benefits expense and other intangibles expense. Marketing and business development expense increased $46 million (33.8 percent) primarily due to a higher charitable foundation contribution. Technology and communications expense increased $26 million (5.1 percent) due to investments in infrastructure and technology development.

These increases were partially offset by a $54 million (2.0 percent) decrease in compensation and employee benefits expense primarily due to cost savings from operational efficiencies, partially offset by merit increases.

Noninterest expense decreased $79 million (1.8 percent) from the fourth quarter of 2024. Excluding notable items of $109 million in the fourth quarter of 2024, first quarter of 2025 noninterest expense increased $30 million (0.7 percent) on a linked quarter basis, primarily driven by higher compensation and employee benefits expense, marketing and business development expense and other noninterest expense, partially offset by lower professional services expense. Compensation and employee benefits expense increased $30 million (1.2 percent) primarily due to seasonally higher stock-based compensation, higher performance-based incentives, variable compensation, and merit increases, partially offset by cost savings from operational efficiencies. Marketing and business development expense increased $22 million (13.8 percent) primarily due to a higher charitable foundation contribution.

Provision for Income Taxes

The provision for income taxes for the first quarter of 2025 resulted in a tax rate of 21.6 percent on a taxable-equivalent basis (effective tax rate of 20.5 percent), compared with 22.1 percent on a taxable-equivalent basis (effective tax rate of 20.7 percent) in the first quarter of 2024, and 21.9 percent on a taxable-equivalent basis (effective tax rate of 20.8 percent) in the fourth quarter of 2024.

8

U.S. Bancorp First Quarter 2025 Results

ALLOWANCE FOR CREDIT LOSSES

($ in millions)

% (a)

% (a)

% (a)

% (a)

% (a)

Balance, beginning of period

Net charge-offs

Commercial

Lease financing

4

6

8

8

7

Total commercial

Commercial mortgages

(5)

Construction and development

1

(6)

1

1

6

Total commercial real estate

(4)

Residential mortgages

—

—

(2)

(3)

(4)

—

—

Credit card

Retail leasing

8

5

3

5

Home equity and second mortgages

(1)

1

(1)

(1)

—

—

Other

Total other retail

Total net charge-offs

Provision for credit losses

Balance, end of period

Components

Allowance for loan losses

Liability for unfunded credit commitments

Total allowance for credit losses

Gross charge-offs

Gross recoveries

Allowance for credit losses as a percentage of

Period-end loans (%)

Nonperforming loans (%)

Nonperforming assets (%)

(a) Annualized and calculated on average loan balances

9

U.S. Bancorp First Quarter 2025 Results

The Company’s provision for credit losses for the first quarter of 2025 was $537 million, compared with $560 million in the fourth quarter of 2024 and $553 million in the first quarter of 2024. The first quarter of 2025 provision was $23 million (4.1 percent) lower than the fourth quarter of 2024 and $16 million (2.9 percent) lower than the first quarter of 2024. The decrease in provision expense on a year-over-year basis was primarily driven by improved credit quality and portfolio mix. The decrease in provision expense on a linked quarter basis reflected lower commercial real estate net charge-offs. The Company continues to monitor economic uncertainty related to interest rates, inflationary pressures, including those related to changing tariff policies, and other economic factors that may affect the financial strength of corporate and consumer borrowers.

Total net charge-offs in the first quarter of 2025 were $547 million, compared with $562 million in the fourth quarter of 2024 and $488 million in the first quarter of 2024. The net charge-off ratio was 0.59 percent in the first quarter of 2025 compared with 0.60 percent in the fourth quarter of 2024, and 0.53 percent in the first quarter of 2024. The decrease in net charge-offs on a linked quarter basis was primarily due to lower net charge-offs on commercial real estate loans. The increase in net charge-offs on a year-over-year basis primarily reflected higher net charge-offs on commercial and credit card loans.

The allowance for credit losses was $7,915 million at March 31, 2025, compared with $7,925 million at December 31, 2024, and $7,904 million at March 31, 2024. The increase in the allowance for credit losses on a year-over-year basis was primarily driven by portfolio growth. The decrease in allowance for credit losses on a linked quarter basis was primarily driven by improved credit quality and portfolio mix. The ratio of the allowance for credit losses to period-end loans was 2.07 percent at March 31, 2025, compared with 2.09 percent at December 31, 2024, and 2.11 percent at March 31, 2024. The ratio of the allowance for credit losses to nonperforming loans was 470 percent at March 31, 2025, compared with 442 percent at December 31, 2024, and 454 percent at March 31, 2024.

Nonperforming assets were $1,727 million at March 31, 2025, compared with $1,832 million at December 31, 2024, and $1,786 million at March 31, 2024. The ratio of nonperforming assets to loans and other real estate was 0.45 percent at March 31, 2025, compared with 0.48 percent at December 31, 2024, and at March 31, 2024. The decrease in nonperforming assets on a year-over year basis was primarily due to lower commercial real estate nonperforming loans, partially offset by higher commercial nonperforming loans. Accruing loans 90 days or more past due were $796 million at March 31, 2025, compared with $810 million at December 31, 2024, and $714 million at March 31, 2024.

U.S. Bancorp First Quarter 2025 Results

DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES

(Percent)

Delinquent loan ratios - 90 days or more past due

Commercial

Commercial real estate

—

Residential mortgages

Credit card

Other retail

Total loans

Delinquent loan ratios - 90 days or more past due and nonperforming loans

Commercial

Commercial real estate

Residential mortgages

Credit card

Other retail

Total loans

ASSET QUALITY (a)

($ in millions)

Nonperforming loans

Commercial

Lease financing

Total commercial

Commercial mortgages

Construction and development

Total commercial real estate

Residential mortgages

Credit card

—

—

—

—

—

Other retail

Total nonperforming loans

Other real estate

Other nonperforming assets

Total nonperforming assets

Accruing loans 90 days or more past due

Nonperforming assets to loans plus ORE (%)

(a) Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due

U.S. Bancorp First Quarter 2025 Results

COMMON SHARES

(Millions)

Beginning shares outstanding

Shares issued for stock incentive plans,

acquisitions and other corporate purposes

4

2

1

—

3

Shares repurchased

(4)

(3)

—

—

(1)

Ending shares outstanding

CAPITAL POSITION

Preliminary Data

($ in millions)

Total U.S. Bancorp shareholders' equity

Basel III Standardized Approach (a)

Common equity tier 1 capital

Tier 1 capital

Total risk-based capital

Fully implemented common equity tier 1 capital ratio (a)

%

% (b)

% (b)

% (b)

% (b)

Tier 1 capital ratio

Total risk-based capital ratio

Leverage ratio

Common equity to assets

Tangible common equity to tangible assets (b)

Tangible common equity to risk-weighted assets (b)

Common equity tier 1 capital to risk-weighted assets, reflecting transitional regulatory capital requirements related to the current expected credit losses methodology (a)

—

(a) Beginning January 1, 2025, the regulatory capital requirements fully reflect implementation related to the current expected credit losses methodology. Prior to 2025, the Company's capital ratios reflected certain transitional adjustments.

(b) See Non-GAAP Financial Measures reconciliation on page 18

Total U.S. Bancorp shareholders’ equity was $60.1 billion at March 31, 2025, compared with $58.6 billion at December 31, 2024, and $55.6 billion at March 31, 2024. During 2024, the Company's Board of Directors authorized a share repurchase program for up to $5.0 billion of the Company's outstanding common stock effective September 13, 2024. The Company began repurchasing shares, in addition to repurchases done in connection with its stock-based compensation plans, in the fourth quarter of 2024.

All regulatory ratios continue to be in excess of “well-capitalized” requirements. The common equity tier 1 capital to risk-weighted assets ratio using the Basel III standardized approach was 10.8 percent at March 31, 2025, compared with 10.6 percent at December 31, 2024, and 10.0 percent at March 31, 2024.

U.S. Bancorp First Quarter 2025 Results

Investor Conference Call

On Wednesday, April 16, 2025 at 8 a.m. CT, President and Chief Executive Officer Gunjan Kedia and Senior Executive Vice President and Chief Financial Officer John Stern will host a conference call to review the financial results. The live conference call will be available online and by telephone. To access the webcast and presentation, visit the U.S. Bancorp website at usbank.com and click on “About us”, “Investor relations”, "News & events" and “Webcasts & presentations.” To access the conference call from locations within the United States and Canada, please dial 888-210-4659. Participants calling from outside the United States and Canada, please dial 646-960-0383. The access code for all participants is 7269933.

For those unable to participate during the live call, a replay will be available at approximately 11 a.m. CT on Wednesday, April 16, 2025. To access the replay, please visit the U.S. Bancorp website at usbank.com and click on “About us”, “Investor relations”, "News & events" and “Webcasts & presentations.”

About U.S. Bancorp

U.S. Bancorp, with approximately 70,000 employees and $676 billion in assets as of March 31, 2025, is the parent company of U.S. Bank National Association. Headquartered in Minneapolis, the company serves millions of customers locally, nationally and globally through a diversified mix of businesses including consumer banking, business banking, commercial banking, institutional banking, payments and wealth management. U.S. Bancorp has been recognized for its approach to digital innovation, community partnerships and customer service, including being named one of the 2025 World’s Most Ethical Companies and one of Fortune’s most admired superregional banks. Learn more at usbank.com/about.

Forward-looking Statements

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:

This press release contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. These forward-looking statements cover, among other things, future economic conditions and the anticipated future revenue, expenses, financial condition, asset quality, capital and liquidity levels, plans, prospects and operations of U.S. Bancorp. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “projects,” “forecasts,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.”

Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those set forth in forward-looking statements, including the following risks and uncertainties:

•Deterioration in general business and economic conditions or turbulence in domestic or global financial markets, which could adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities, reduce the availability of funding to certain financial institutions, lead to a tightening of credit, and increase stock price volatility;

•Turmoil and volatility in the financial services industry, including failures or rumors of failures of other depository institutions, which could affect the ability of depository institutions, including U.S. Bank National Association, to attract and retain depositors, and could affect the ability of financial services providers, including U.S. Bancorp, to borrow or raise capital;

•Increases in FDIC assessments, including due to bank failures;

•Actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions;

•Uncertainty regarding the content, timing and impact of changes to regulatory capital, liquidity and resolution-related requirements applicable to large banking organizations in response to adverse developments affecting the banking sector;

•Changes to statutes, regulations, or regulatory policies or practices, including capital and liquidity requirements, and the enforcement and interpretation of such laws and regulations, and U.S. Bancorp’s ability to address or satisfy those requirements and other requirements or conditions imposed by regulatory entities;

•Changes in trade policy, including the imposition of tariffs or the impacts of retaliatory tariffs;

•Changes in interest rates;

•Increases in unemployment rates;

•Deterioration in the credit quality of U.S. Bancorp's loan portfolios or in the value of the collateral securing those loans;

•Changes in commercial real estate occupancy rates;

U.S. Bancorp First Quarter 2025 Results

•Risks related to originating and selling mortgages, including repurchase and indemnity demands, and related to U.S. Bancorp’s role as a loan servicer;

•Impacts of current, pending or future litigation and governmental proceedings;

•Increased competition from both banks and non-banks;

•Effects of climate change and related physical and transition risks;

•Changes in customer behavior and preferences and the ability to implement technological changes to respond to customer needs and meet competitive demands;

•Breaches in data security;

•Failures or disruptions in or breaches of U.S. Bancorp’s operational, technology or security systems or infrastructure, or those of third parties, including as a result of cybersecurity incidents;

•Failures to safeguard personal information;

•Impacts of pandemics, natural disasters, terrorist activities, civil unrest, international hostilities and geopolitical events;

•Impacts of supply chain disruptions, rising inflation, slower growth or a recession;

•Failure to execute on strategic or operational plans;

•Effects of mergers and acquisitions and related integration;

•Effects of critical accounting policies and judgments;

•Effects of changes in or interpretations of tax laws and regulations;

•Management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputation risk; and

•The risks and uncertainties more fully discussed in the section entitled “Risk Factors” of U.S. Bancorp’s Form 10-K for the year ended December 31, 2024, and subsequent filings with the Securities and Exchange Commission.

Factors other than these risks also could adversely affect U.S. Bancorp’s results, and the reader should not consider these risks to be a complete set of all potential risks or uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date hereof, and U.S. Bancorp undertakes no obligation to update them in light of new information or future events.

U.S. Bancorp First Quarter 2025 Results

Non-GAAP Financial Measures

In addition to capital ratios defined by banking regulators, U.S. Bancorp (the "Company") considers various other measures when evaluating capital utilization and adequacy, including:

•Tangible common equity to tangible assets

•Tangible common equity to risk-weighted assets

•Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology, and

•Return on tangible common equity.

These measures are viewed by management as useful additional methods of evaluating the Company’s utilization of its capital held and the level of capital available to withstand unexpected negative market or economic conditions. Additionally, presentation of these measures allows investors, analysts and banking regulators to assess the Company’s capital position and use of capital relative to other financial services companies. These measures are not defined in generally accepted accounting principles (“GAAP”) or in banking regulations or were not effective for certain periods. In addition, certain capital measures related to prior periods are presented on the same basis as those in the current period. The effective capital ratios defined by banking regulations for these periods were subject to certain transitional provisions for the implementation of accounting guidance related to the impairment of financial instruments based on the current expected credit losses methodology.

As a result, these measures disclosed by the Company may be considered non-GAAP financial measures. Management believes this information helps investors assess trends in the Company’s capital utilization and adequacy.

The Company also discloses net interest income and related ratios and analysis on a taxable-equivalent basis, which may also be considered non-GAAP financial measures. The Company believes this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net interest income arising from taxable and tax-exempt sources. In addition, certain performance measures utilize net interest income on a taxable-equivalent basis, including the efficiency ratio, tangible efficiency ratio, net interest margin, and tax rate.

The adjusted noninterest expense, adjusted net income, adjusted diluted earnings per common share, and adjusted operating leverage exclude notable items. Management uses these measures in their analysis of the Company’s performance and believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods.

There may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider the consolidated financial statements and other financial information contained in this press release in their entirety, and not to rely on any single financial measure. A table follows that shows the Company’s calculation of these non-GAAP financial measures.

CONSOLIDATED STATEMENT OF INCOME

(Dollars and Shares in Millions, Except Per Share Data)

Three Months Ended

(Unaudited)

Interest Income

Loans

Loans held for sale

Investment securities

Other interest income

Total interest income

Interest Expense

Deposits

Short-term borrowings

Long-term debt

Total interest expense

Net interest income

Provision for credit losses

Net interest income after provision for credit losses

Noninterest Income

Card revenue

Corporate payment products revenue

Merchant processing services

Trust and investment management fees

Service charges

Capital markets revenue

Mortgage banking revenue

Investment products fees

Securities gains (losses), net

—

2

Other

Total noninterest income

Noninterest Expense

Compensation and employee benefits

Net occupancy and equipment

Professional services

Marketing and business development

Technology and communications

Other intangibles

Merger and integration charges

—

Other

Total noninterest expense

Income before income taxes

Applicable income taxes

Net income

Net (income) loss attributable to noncontrolling interests

(7)

(7)

Net income attributable to U.S. Bancorp

Net income applicable to U.S. Bancorp common shareholders

Earnings per common share

Diluted earnings per common share

Dividends declared per common share

Average common shares outstanding

Average diluted common shares outstanding

CONSOLIDATED ENDING BALANCE SHEET

(Dollars in Millions)

Assets

(Unaudited)

(Unaudited)

Cash and due from banks

Investment securities

Held-to-maturity

Available-for-sale

Loans held for sale

Loans

Commercial

Commercial real estate

Residential mortgages

Credit card

Other retail

Total loans

Less allowance for loan losses

Net loans

Premises and equipment

Goodwill

Other intangible assets

Other assets

Total assets

Liabilities and Shareholders' Equity

Deposits

Noninterest-bearing

Interest-bearing

Total deposits

Short-term borrowings

Long-term debt

Other liabilities

Total liabilities

Shareholders' equity

Preferred stock

Common stock

Capital surplus

Retained earnings

Less treasury stock

Accumulated other comprehensive income (loss)

Total U.S. Bancorp shareholders' equity

Noncontrolling interests

Total equity

Total liabilities and equity

NON-GAAP FINANCIAL MEASURES

(Dollars in Millions, Unaudited)

Total equity

Preferred stock

Noncontrolling interests

Common equity (a)

Goodwill (net of deferred tax liability) (1)

Intangible assets (net of deferred tax liability), other than mortgage servicing rights

Tangible common equity (b)

Common equity tier 1 capital, determined in accordance with transitional regulatory capital requirements related to the current expected credit losses methodology implementation

Adjustments (2)

Common equity tier 1 capital, reflecting the full implementation of the current expected credit losses methodology (c)

Total assets (d)

Goodwill (net of deferred tax liability) (1)

Intangible assets (net of deferred tax liability), other than mortgage servicing rights

Tangible assets (e)

Risk-weighted assets, determined in accordance with prescribed regulatory capital requirements effective for the Company (f)

*

Adjustments (3)

Risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (g)

Ratios *

Common equity to assets (a)/(d)

%

%

%

%

%

Tangible common equity to tangible assets (b)/(e)

Tangible common equity to risk-weighted assets (b)/(f)

Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (c)/(g)

Three Months Ended

Net income applicable to U.S. Bancorp common shareholders

Intangibles amortization (net-of-tax)

Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization

Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangible amortization (h)

Average total equity

Average preferred stock

Average noncontrolling interests

Average goodwill (net of deferred tax liability) (1)

Average intangible assets (net of deferred tax liability), other than mortgage servicing rights

Average tangible common equity (i)

Return on tangible common equity (h)/(i)

%

%

%

%

%

Net interest income

Taxable-equivalent adjustment (4)

Net interest income, on a taxable-equivalent basis

Net interest income, on a taxable-equivalent basis (as calculated above)

Noninterest income

Less: Securities gains (losses), net

—

(1)

2

Total net revenue, excluding net securities gains (losses) (j)

Noninterest expense (k)

Less: Intangible amortization

Noninterest expense, excluding intangible amortization (l)

Efficiency ratio (k)/(j)

%

%

%

%

%

Tangible efficiency ratio (l)/(j)

* Preliminary data. Subject to change prior to filings with applicable regulatory agencies.

(1)Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements.

(2)Includes the estimated increase in the allowance for credit losses related to the adoption of the current expected credit losses methodology net of deferred taxes.

(3)Includes the impact of the estimated increase in the allowance for credit losses related to the adoption of the current expected credit losses methodology.

(4)Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes.

NON-GAAP FINANCIAL MEASURES

Three Months Ended

(Dollars and Shares in Millions, Except Per Share Data, Unaudited)

Percent Change

Net income applicable to U.S. Bancorp common shareholders

Less: Notable items, including the impact of earnings allocated to participating stock awards (1)

Net income applicable to U.S. Bancorp common shareholders, excluding notable items (a)

Average diluted common shares outstanding (b)

Diluted earnings per common share, excluding notable items (a)/(b)

Net interest income

Taxable-equivalent adjustment (2)

Net interest income, on a taxable-equivalent basis

Net interest income, on a taxable-equivalent basis (as calculated above)

Noninterest income

Total net revenue

%

(c)

Noninterest expense

%

(d)

Less: Notable items (1)

—

Total noninterest expense, excluding notable items

%

(e)

Operating leverage (c) - (d)

%

Operating leverage, excluding notable items (c) - (e)

%

(1)Notable items of $109 million ($82 million net-of-tax) for the three months ended December 31, 2024 included lease impairments and operational efficiency actions. Notable items of $265 million ($199 million net-of-tax) for the three months ended March 31, 2024 included $155 million of merger and integration-related charges and a $110 million charge for the increase in the FDIC special assessment.

(2)Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes.

Business Segment Schedules

WEALTH, CORPORATE, COMMERCIAL AND