EX-99.12a3q25earningsrelease.htmEX-99.1 Document
3Q25 Key Financial Data
3Q25 Financial Highlights
PROFITABILITY METRICS
3Q25
2Q25
3Q24
•Record net revenue of $7,329 million, including an increase of 9.5% in fee revenue
•Net income of $2,001 million, an increase of 16.7% year-over-year
•Diluted earnings per common share of $1.22, compared with $1.03 in the third quarter of 2024, an increase of 18.4% year-over-year
•Return on tangible common equity of 18.6%, increased compared with the third quarter of 2024
•Return on average assets of 1.17%, increased compared with the third quarter of 2024
•Efficiency ratio of 57.2%, improved compared with the third quarter of 2024
•Positive operating leverage of 530 basis points on a year-over-year basis, excluding net securities gains (losses)
•T1Net interest margin of 2.75%, an increase of 9 basis points on a linked quarter basis
•Noninterest expense relatively stable year-over-year
•Average total loans increase of 1.4% on a year-over-year basis
•CET1 capital ratio of 10.9% at September 30, 2025
Return on average assets (%)
1.17
1.08
1.03
Return on average common equity (%)
13.5
12.9
12.4
Return on tangible common equity (%) (a)
18.6
18.0
17.9
Net interest margin (%)
2.75
2.66
2.74
Efficiency ratio (%) (a)
57.2
59.2
60.2
Tangible efficiency ratio (%) (a)
55.5
57.5
58.2
INCOME STATEMENT (b)
3Q25
2Q25
3Q24
Net interest income (taxable-equivalent basis)
$4,251
$4,080
$4,166
Noninterest income
$3,078
$2,924
$2,698
Noninterest expense
$4,197
$4,181
$4,204
Net income attributable to U.S. Bancorp
$2,001
$1,815
$1,714
Diluted earnings per common share
$1.22
$1.11
$1.03
Dividends declared per common share
$.52
$.50
$.50
BALANCE SHEET (b)
3Q25
2Q25
3Q24
Average total loans
$379,152
$378,529
$374,070
Average total deposits
$511,782
$502,890
$508,757
Net charge-off ratio (%)
.56
.59
.60
Book value per common share (period end)
$36.33
$35.06
$33.34
Tangible book value per common share (period end) (a)
$27.84
$26.52
$24.71
Basel III standardized CET1 (%) (c)
10.9
10.7
10.5
(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 third quarter, we reported a return on tangible common equity of 18.6% and diluted earnings per common share of $1.22, an increase of 18.4% year-over-year. Our commitment to growth, execution, and greater interconnectedness across the franchise supported delivery of T2record net revenue of $7.3 billion this quarter. Solid net interest income growth and margin expansion, as well as continued momentum across our fee businesses and prudent expense management supported double-digit net income growth, on both a linked quarter and year-over-year basis. For the quarter, we generated meaningful positive operating leverage, on a year-over-year basis, and made steady progress toward our medium-term financial targets. Asset quality and capital levels remain strong. T3Our net charge-off ratio improved on both a linked quarter and year-over-year basis, and T4our CET1 capital ratio improved to 10.9%.
On behalf of all of us at U.S. Bank, I want to extend our deep gratitude to our clients and shareholders for your trust and partnership. This quarter’s strong results reflect the power of our strategy and the dedication of our teams across the franchise. As we look ahead, we remain confident in our ability to deliver sustainable growth, maintain disciplined risk management, and continue creating long-term value for all of our stakeholders.”
— Gunjan Kedia, CEO, U.S. Bancorp
Business and Other Highlights
T5U.S. Bank Selected to Provide Custody Services for Anchorage Digital Bank
U.S. Bank has been chosen to provide custody services for the reserves backing payment stablecoins issued by Anchorage Digital Bank, the only federally chartered crypto-native bank in the U.S. This partnership leverages U.S. Bank’s extensive global custodian capabilities and highlights the growing alignment between traditional finance and digital assets, following the GENIUS Act’s establishment of strict regulatory standards for stablecoins. The collaboration aims to accelerate the responsible scaling of dollar-backed payment stablecoins, ensuring high standards of safety, transparency, and institutional utility.
Moody’s Revises U.S. Bancorp Outlook from Negative to Stable
Moody's Ratings recently affirmed U.S. Bancorp's ratings, with its senior unsecured debt rated A3, and revised the outlook from negative to stable due to the bank's enduring benefit of its strong diversification, strong balance sheet, and improving profitability. Moody’s said that U.S. Bancorp boasts a solid funding and liquidity base and stable asset quality, while its diversification allows for a higher level of stress resilience compared to most other U.S. banks.
T6U.S. Bank Launches Embedded Accounts Payable and Payroll Tools for Small Businesses
U.S. Bank continues to build interconnected products to help its 1.4 million small business clients manage their businesses. U.S. Bank bill pay for business, offers a comprehensive accounts payable solution integrated with business checking to provide an all-in-one cash flow management platform. U.S. Bank Payroll, enables owners to manage payroll within their online banking dashboard with time-saving automation and automated tax compliance. Both of these embedded solutions are seamlessly integrated in the U.S. Bank online banking platform to create a one-stop hub where business owners can manage their checking, accounts payable, payroll and more.
T7Elavon and Woo Expand Payments Partnership to North America
Elavon and WooCommerce are expanding a successful European payments partnership to North America, enabling merchants in the United States and Canada to access Elavon's secure and flexible payment solutions. This move allows micro, small, and medium-sized businesses to scale online more easily and benefit from Elavon's suite of services, including seamless integration and streamlined administration for ecommerce platforms and independent software vendors.
Investor contact: George Andersen, George.Andersen@usbank.com | Media contact: Jeff Shelman, Jeffrey.Shelman@usbank.com
U.S. Bancorp Third Quarter 2025 Results
INCOME STATEMENT HIGHLIGHTS
($ in millions, except per share data)
Percent Change
3Q 2025
2Q 2025
3Q 2024
3Q25 vs 2Q25
3Q25 vs 3Q24
Net interest income
$4,222
$4,051
$4,135
4.2
2.1
Taxable-equivalent adjustment
29
29
31
—
(6.5)
Net interest income (taxable-equivalent basis)
4,251
4,080
4,166
4.2
2.0
Noninterest income
3,078
2,924
2,698
5.3
14.1
Total net revenue
7,329
7,004
6,864
4.6
6.8
Noninterest expense
4,197
4,181
4,204
.4
(.2)
Income before provision and income taxes
3,132
2,823
2,660
10.9
17.7
Provision for credit losses
571
501
557
14.0
2.5
Income before taxes
2,561
2,322
2,103
10.3
21.8
Income taxes and taxable-equivalent adjustment
553
501
381
10.4
45.1
Net income
2,008
1,821
1,722
10.3
16.6
Net (income) loss attributable to noncontrolling interests
(7)
(6)
(8)
(16.7)
12.5
Net income attributable to U.S. Bancorp
$2,001
$1,815
$1,714
10.2
16.7
Net income applicable to U.S. Bancorp common shareholders
$1,893
$1,733
$1,601
9.2
18.2
Diluted earnings per common share
$1.22
$1.11
$1.03
9.9
18.4
INCOME STATEMENT HIGHLIGHTS
($ in millions, except per share data)
ADJUSTED (a) (b)
YTD
2025
YTD
2024
Percent
Change
YTD
2025
YTD
2024
Percent
Change
Net interest income
$12,365
$12,143
1.8
$12,365
$12,143
1.8
Taxable-equivalent adjustment
88
90
(2.2)
88
90
(2.2)
Net interest income (taxable-equivalent basis)
12,453
12,233
1.8
12,453
12,233
1.8
Noninterest income
8,838
8,213
7.6
8,838
8,213
7.6
Total net revenue
21,291
20,446
4.1
21,291
20,446
4.1
Noninterest expense
12,610
12,877
(2.1)
12,610
12,586
.2
Income before provision and income taxes
8,681
7,569
14.7
8,681
7,860
10.4
Provision for credit losses
1,609
1,678
(4.1)
1,609
1,678
(4.1)
Income before taxes
7,072
5,891
20.0
7,072
6,182
14.4
Income taxes and taxable-equivalent adjustment
1,527
1,232
23.9
1,527
1,305
17.0
Net income
5,545
4,659
19.0
5,545
4,877
13.7
Net (income) loss attributable to noncontrolling interests
(20)
(23)
13.0
(20)
(23)
13.0
Net income attributable to U.S. Bancorp
$5,525
$4,636
19.2
$5,525
$4,854
13.8
Net income applicable to U.S. Bancorp common shareholders
$5,229
$4,328
20.8
$5,229
$4,545
15.0
Diluted earnings per common share
$3.35
$2.77
20.9
$3.35
$2.91
15.1
(a)2024 excludes $291 million ($218 million net-of-tax) of notable items including: $155 million of merger and integration-related charges and $136 million for the increase in the FDIC special assessment.
(b)See Non-GAAP Financial Measures reconciliation beginning on page 18.
2
U.S. Bancorp Third Quarter 2025 Results
Net income attributable to U.S. Bancorp was $2,001 million for the third quarter of 2025, $287 million higher than the $1,714 million for the third quarter of 2024 and $186 million higher than the $1,815 million for the second quarter of 2025. Diluted earnings per common share was $1.22 in the third quarter of 2025, compared with $1.03 in the third quarter of 2024 and $1.11 in the second quarter of 2025.
The increase in net income attributable to U.S. Bancorp year-over-year was primarily due to higher total net revenue. Net interest income increased 2.0 percent on a year-over-year taxable-equivalent basis, primarily due to the favorable impact of the change in loan mix, fixed asset repricing and lower rates paid on interest-bearing deposits. The net interest margin of 2.75 percent in the third quarter of 2025 was relatively stable compared with 2.74 percent in the third quarter of 2024. Noninterest income increased 14.1 percent compared with a year ago, driven by higher revenue across most categories. T8Noninterest expense decreased 0.2 percent primarily due to lower compensation and employee benefits expense, partially offset by higher technology and communications expense and other expense. The provision for credit losses increased $14 million (2.5 percent) compared with the third quarter of 2024, primarily due to loan portfolio growth.
Net income attributable to U.S. Bancorp increased on a linked quarter basis primarily due to an increase in total net revenue, partially offset by a higher provision for credit losses. Net interest income increased 4.2 percent on a linked quarter taxable-equivalent basis, primarily driven by loan mix, fixed asset repricing, and the reinvestment from the second quarter portfolio sales, partially offset by higher interest-bearing deposit balances. The net interest margin increased to 2.75 percent in the third quarter of 2025 from 2.66 percent in the second quarter of 2025, driven by favorable loan mix and fixed rate repricing as well as the impact of the portfolio sales completed in the second quarter of 2025.
Noninterest income in the third quarter of 2025 increased 5.3 percent over the second quarter of 2025 primarily due to higher trust and investment management fees, capital markets revenue, mortgage banking revenue and other revenue. Noninterest expense in the third quarter of 2025 increased 0.4 percent over the second quarter of 2025 primarily due to higher marketing and business development expense and technology and communications expense, partially offset by lower compensation and employee benefits expense. The provision for credit losses increased $70 million (14.0 percent) compared with the second quarter of 2025, primarily due to loan portfolio growth compared with a decline in ending loan balances in the second quarter due to loan sales.
3
U.S. Bancorp Third Quarter 2025 Results
NET INTEREST INCOME
(Taxable-equivalent basis; $ in millions)
Change
3Q 2025
2Q 2025
3Q 2024
3Q25 vs 2Q25
3Q25 vs 3Q24
YTD
2025
YTD
2024
Change
Components of net interest income
Income on earning assets
$
7,956
$
7,633
$
8,117
$
323
$
(161)
$
23,135
$
23,927
$
(792)
Expense on interest-bearing liabilities
3,705
3,553
3,951
152
(246)
10,682
11,694
(1,012)
Net interest income
$
4,251
$
4,080
$
4,166
$
171
$
85
$
12,453
$
12,233
$
220
Average yields and rates paid
Earning assets yield
5.13
%
4.99
%
5.33
%
.14
%
(.20)
%
5.04
%
5.29
%
(.25)
%
Rate paid on interest-bearing liabilities
2.88
2.80
3.14
.08
(.26)
2.81
3.15
(.34)
Gross interest margin
2.25
%
2.19
%
2.19
%
.06
%
.06
%
2.23
%
2.14
%
.09
%
Net interest margin
2.75
%
2.66
%
2.74
%
.09
%
.01
%
2.71
%
2.70
%
.01
%
Average balances
Investment securities (a)
$
173,423
$
172,841
$
166,899
$
582
$
6,524
$
172,489
$
165,059
$
7,430
Loans held for sale
2,253
4,843
2,757
(2,590)
(504)
2,975
2,381
594
Loans
379,152
378,529
374,070
623
5,082
378,903
373,278
5,625
Interest-bearing deposits with banks
47,822
41,550
50,547
6,272
(2,725)
44,384
51,499
(7,115)
Other earning assets
14,867
15,579
12,907
(712)
1,960
14,972
11,863
3,109
Earning assets
617,517
613,342
607,180
4,175
10,337
613,723
604,080
9,643
Interest-bearing liabilities
510,919
508,918
500,382
2,001
10,537
507,978
496,082
11,896
(a) Excludes unrealized gain (loss)
Net interest income on a taxable-equivalent basis in the third quarter of 2025 was $4,251 million, an increase of $85 million (2.0 percent) over the third quarter of 2024. The increase was primarily due to the favorable impact of the change in loan mix, fixed asset repricing and lower rates paid on interest-bearing deposits. Average earning assets were $10.3 billion (1.7 percent) higher than the third quarter of 2024, reflecting increases of $6.5 billion (3.9 percent) in average investment securities, $5.1 billion (1.4 percent) in average loans, and $2.0 billion (15.2 percent) in average other earning assets, partially offset by a decrease of $2.7 billion (5.4 percent) in average interest-bearing deposits with banks.
Net interest income on a taxable-equivalent basis increased $171 million (4.2 percent) on a linked quarter basis primarily driven by the favorable loan mix, fixed asset repricing, and the reinvestment from the second quarter portfolio sales, partially offset by higher interest bearing deposit balances. Average earning assets were $4.2 billion (0.7 percent) higher on a linked quarter basis, reflecting an increase of $6.3 billion (15.1 percent) in average interest-bearing deposits with banks, partially offset by a decrease in average loans held for sale of $2.6 billion (53.5 percent). Second quarter of 2025 average loans held for sale reflected the impact of a portfolio of residential mortgages transferred to held for sale and subsequently sold during the second quarter of 2025.
The net interest margin in the third quarter of 2025 was 2.75 percent, compared with 2.74 percent in the third quarter of 2024 and 2.66 percent in the second quarter of 2025. Net interest margin was relatively stable compared with the prior year quarter. The increase in net interest margin on a linked quarter basis was due to favorable loan mix and fixed rate repricing as well as the impact of the portfolio sales completed in the second quarter of 2025.
4
U.S. Bancorp Third Quarter 2025 Results
AVERAGE LOANS
($ in millions)
Percent Change
3Q 2025
2Q 2025
3Q 2024
3Q25 vs 2Q25
3Q25 vs 3Q24
YTD
2025
YTD
2024
Percent Change
Commercial
$141,542
$139,606
$128,979
1.4
9.7
$139,047
$128,582
8.1
Lease financing
4,250
4,211
4,159
.9
2.2
4,220
4,167
1.3
Total commercial
145,792
143,817
133,138
1.4
9.5
143,267
132,749
7.9
Commercial mortgages
38,384
38,194
40,343
.5
(4.9)
38,400
40,918
(6.2)
Construction and development
9,862
10,272
11,111
(4.0)
(11.2)
10,132
11,339
(10.6)
Total commercial real estate
48,246
48,466
51,454
(.5)
(6.2)
48,532
52,257
(7.1)
Residential mortgages
114,780
115,616
117,559
(.7)
(2.4)
116,398
116,563
(.1)
Credit card
30,241
29,588
28,994
2.2
4.3
29,747
28,430
4.6
Retail leasing
3,718
3,869
4,088
(3.9)
(9.1)
3,858
4,118
(6.3)
Home equity and second mortgages
13,790
13,678
13,239
.8
4.2
13,671
13,092
4.4
Other
22,585
23,495
25,598
(3.9)
(11.8)
23,430
26,069
(10.1)
Total other retail
40,093
41,042
42,925
(2.3)
(6.6)
40,959
43,279
(5.4)
Total loans
$379,152
$378,529
$374,070
.2
1.4
$378,903
$373,278
1.5
Average total loans for the third quarter of 2025 were $5.1 billion (1.4 percent) higher than the third quarter of 2024. The increase was primarily due to higher total commercial loans (9.5 percent) and credit card loans (4.3 percent), partially offset by lower total commercial real estate loans (6.2 percent), residential mortgages (2.4 percent), and total other retail loans (6.6 percent). The increase in total commercial loans was primarily due to growth in loans to financial institutions. The increase in credit card loans was primarily due to higher spend volume. The decrease in commercial real estate loans was primarily due to payoffs and loan workout activities. The decreases in residential mortgages and other retail loans were primarily due to loan sales in the second quarter of 2025.
Average total loans were $623 million (0.2 percent) higher than the second quarter of 2025. The increase was primarily due to higher total commercial loans (1.4 percent) and credit card loans (2.2 percent), partially offset by lower residential mortgages (0.7 percent) and total other retail loans (2.3 percent), driven by similar factors as the year-over-year changes.
5
U.S. Bancorp Third Quarter 2025 Results
AVERAGE DEPOSITS
($ in millions)
Percent Change
3Q 2025
2Q 2025
3Q 2024
3Q25 vs 2Q25
3Q25 vs 3Q24
YTD
2025
YTD
2024
Percent Change
Noninterest-bearing deposits
$79,890
$79,117
$80,939
1.0
(1.3)
$79,568
$83,040
(4.2)
Interest-bearing savings deposits
Interest checking
131,281
131,599
125,631
(.2)
4.5
129,531
125,451
3.3
Money market savings
181,063
177,087
206,546
2.2
(12.3)
184,478
203,821
(9.5)
Savings accounts
62,599
58,171
36,814
7.6
70.0
57,059
39,097
45.9
Total savings deposits
374,943
366,857
368,991
2.2
1.6
371,068
368,369
.7
Time deposits
56,949
56,916
58,827
.1
(3.2)
56,451
57,167
(1.3)
Total interest-bearing deposits
431,892
423,773
427,818
1.9
1.0
427,519
425,536
.5
Total deposits
$511,782
$502,890
$508,757
1.8
.6
$507,087
$508,576
(.3)
Average total deposits for the third quarter of 2025 were $3.0 billion (0.6 percent) higher than the third quarter of 2024. Average noninterest-bearing deposits decreased $1.0 billion (1.3 percent) reflecting decreases within Consumer and Business Banking, partially offset by increases within Wealth, Corporate, Commercial and Institutional Banking. Average total savings deposits increased $6.0 billion (1.6 percent) driven by increases in Consumer and Business Banking and Wealth, Corporate, Commercial and Institutional Banking. Average time deposits were $1.9 billion (3.2 percent) lower than the third quarter of 2024 mainly 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 increased $8.9 billion (1.8 percent) over the second quarter of 2025. Average noninterest-bearing deposits increased $773 million (1.0 percent) reflecting increases within Wealth, Corporate, Commercial and Institutional Banking. Average total savings deposits increased $8.1 billion (2.2 percent) driven by increases in Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking.
6
U.S. Bancorp Third Quarter 2025 Results
NONINTEREST INCOME
($ in millions)
Percent Change
3Q 2025
2Q 2025
3Q 2024
3Q25 vs 2Q25
3Q25 vs 3Q24
YTD
2025
YTD
2024
Percent Change
Card revenue
$440
$442
$426
(.5)
3.3
$1,280
$1,246
2.7
Corporate payment products revenue
195
192
203
1.6
(3.9)
576
582
(1.0)
Merchant processing services
463
474
440
(2.3)
5.2
1,352
1,295
4.4
Trust and investment management fees
730
703
667
3.8
9.4
2,113
1,957
8.0
Service charges
333
336
302
(.9)
10.3
984
939
4.8
Capital markets revenue
434
390
397
11.3
9.3
1,206
1,159
4.1
Mortgage banking revenue
180
162
155
11.1
16.1
515
511
.8
Investment products fees
97
90
84
7.8
15.5
274
243
12.8
Other
213
192
143
10.9
49.0
602
434
38.7
Total fee revenue
3,085
2,981
2,817
3.5
9.5
8,902
8,366
6.4
Securities gains (losses), net
(7)
(57)
(119)
87.7
94.1
(64)
(153)
58.2
Total noninterest income
$3,078
$2,924
$2,698
5.3
14.1
$8,838
$8,213
7.6
Third quarter noninterest income of $3,078 million was $380 million (14.1 percent) higher than the third quarter of 2024. Third quarter total fee revenue was $268 million (9.5 percent) higher than the prior year quarter. The increase was driven by higher payment services revenue, trust and investment management fees, service charges, capital markets revenue, mortgage banking revenue and other revenue. Payment services revenue increased $29 million (2.7 percent) compared with the third quarter of 2024, due to increases in card revenue of $14 million (3.3 percent) mainly due to higher sales volume, and merchant processing services of $23 million (5.2 percent) due to higher sales volume. Trust and investment management fees increased $63 million (9.4 percent) driven by business growth and favorable market conditions.
Service charges increased $31 million (10.3 percent) due to higher treasury management fees and higher deposit service charges. Capital markets revenue increased $37 million (9.3 percent) due to higher corporate bond underwriting fees and syndication activity. Mortgage banking revenue increased $25 million (16.1 percent) due to the change in fair value of mortgage servicing rights, net of hedging activities. Other revenue increased $70 million (49.0 percent) due to higher tax credit investment activity and other favorable items.
Noninterest income was $154 million (5.3 percent) higher in the third quarter of 2025 compared with the second quarter of 2025. Third quarter total fee revenue was $104 million (3.5 percent) higher than the linked quarter. The increase was driven by higher trust and investment management fees, capital markets revenue, mortgage banking revenue and other revenue. Trust and investment management fees increased $27 million (3.8 percent) due to business growth and favorable market conditions. Capital markets revenue increased $44 million (11.3 percent) due to higher corporate bond underwriting fees and syndication activity. Mortgage banking revenue increased $18 million (11.1 percent) due to the change in fair value of mortgage servicing rights, net of hedging activities, and higher gain on sale margins. Other revenue increased $21 million (10.9 percent) due to higher tax credit investment activity and other favorable items.
7
U.S. Bancorp Third Quarter 2025 Results
NONINTEREST EXPENSE
($ in millions)
Percent Change
3Q 2025
2Q 2025
3Q 2024
3Q25 vs 2Q25
3Q25 vs 3Q24
YTD
2025
YTD
2024
Percent Change
Compensation and employee benefits
$2,561
$2,600
$2,637
(1.5)
(2.9)
$7,798
$7,947
(1.9)
Net occupancy and equipment
300
301
317
(.3)
(5.4)
907
929
(2.4)
Professional services
117
109
130
7.3
(10.0)
324
356
(9.0)
Marketing and business development
175
161
165
8.7
6.1
518
459
12.9
Technology and communications
560
534
524
4.9
6.9
1,627
1,540
5.6
Other intangibles
125
124
142
.8
(12.0)
372
430
(13.5)
Other
359
352
289
2.0
24.2
1,064
925
15.0
Total before notable items
4,197
4,181
4,204
.4
(.2)
12,610
12,586
.2
Notable items
—
—
—
—
—
—
291
nm
Total noninterest expense
$4,197
$4,181
$4,204
.4
(.2)
$12,610
$12,877
(2.1)
Third quarter noninterest expense of $4,197 million was $7 million (0.2 percent) lower than the third quarter of 2024. The decrease was driven by lower compensation and employee benefits expense and net occupancy and equipment expense, partially offset by higher technology and communications expense and other noninterest expense. Compensation and employee benefits expense decreased $76 million (2.9 percent) primarily due to cost savings from operational efficiencies, partially offset by merit increases. Net occupancy and equipment expense decreased $17 million (5.4 percent) due to cost savings from operational efficiencies. The increase in technology and communications expense of $36 million (6.9 percent) was primarily due to investments in infrastructure and technology development.
Noninterest expense increased $16 million (0.4 percent) over the second quarter of 2025. The increase was primarily driven by higher marketing and business development expense and technology and communications expense, partially offset by lower compensation and employee benefits expense. Marketing and business development expense increased $14 million (8.7 percent) primarily due to increased initiatives. Technology and communications expense increased $26 million (4.9 percent) primarily due to investments in infrastructure and technology development. Compensation and employee benefits expense decreased $39 million (1.5 percent) primarily due to timing of corporate incentives.
Provision for Income Taxes
The provision for income taxes for the third quarter of 2025 resulted in a tax rate of 21.6 percent on a taxable-equivalent basis (effective tax rate of 20.7 percent), compared with 18.1 percent on a taxable-equivalent basis (effective tax rate of 16.9 percent) in the third quarter of 2024, and 21.6 percent on a taxable-equivalent basis (effective tax rate of 20.6 percent) in the second quarter of 2025. The tax rate in the third quarter of 2024 reflected the impact of favorable settlements.
8
U.S. Bancorp Third Quarter 2025 Results
ALLOWANCE FOR CREDIT LOSSES
($ in millions)
3Q 2025
% (a)
2Q 2025
% (a)
1Q 2025
% (a)
4Q 2024
% (a)
3Q 2024
% (a)
Balance, beginning of period
$7,862
$7,915
$7,925
$7,927
$7,934
Net charge-offs
Commercial
85
.24
122
.35
159
.47
140
.42
139
.43
Lease financing
7
.65
6
.57
4
.39
6
.57
8
.77
Total commercial
92
.25
128
.36
163
.47
146
.43
147
.44
Commercial mortgages
103
1.06
57
.60
(5)
(.05)
44
.45
69
.68
Construction and development
—
—
—
—
1
.04
(6)
(.23)
1
.04
Total commercial real estate
103
.85
57
.47
(4)
(.03)
38
.30
70
.54
Residential mortgages
(1)
—
(1)
—
—
—
(2)
(.01)
(3)
(.01)
Credit card
284
3.73
317
4.30
325
4.48
317
4.28
299
4.10
Retail leasing
17
1.81
10
1.04
13
1.32
8
.79
5
.49
Home equity and second mortgages
(2)
(.06)
—
—
(1)
(.03)
1
.03
(1)
(.03)
Other
43
.76
43
.73
51
.85
54
.86
47
.73
Total other retail
58
.57
53
.52
63
.61
63
.59
51
.47
Total net charge-offs
536
.56
554
.59
547
.59
562
.60
564
.60
Provision for credit losses
571
501
537
560
557
Balance, end of period
$7,897
$7,862
$7,915
$7,925
$7,927
Components
Allowance for loan losses
$7,557
$7,537
$7,584
$7,583
$7,560
Liability for unfunded credit commitments
340
325
331
342
367
Total allowance for credit losses
$7,897
$7,862
$7,915
$7,925
$7,927
Gross charge-offs
$669
$683
$690
$697
$669
Gross recoveries
$133
$129
$143
$135
$105
Allowance for credit losses as a percentage of
Period-end loans (%)
2.06
2.07
2.07
2.09
2.12
Nonperforming loans (%)
490
480
470
442
438
Nonperforming assets (%)
477
468
458
433
429
(a) Annualized and calculated on average loan balances
9
U.S. Bancorp Third Quarter 2025 Results
The Company’s provision for credit losses for the third quarter of 2025 was $571 million, compared with $501 million in the second quarter of 2025 and $557 million in the third quarter of 2024. The third quarter of 2025 provision was $70 million (14.0 percent) higher than the second quarter of 2025 and $14 million (2.5 percent) higher than the third quarter of 2024. The increase in provision expense on a year-over-year basis was primarily driven by portfolio growth. The increase on a linked quarter basis was attributed to portfolio growth as well as the effect of loan sales in the second quarter of 2025. The Company continues to monitor economic uncertainty related to interest rates, inflationary pressures, including those related to changing tariff policies, the government shutdown, and other economic factors that may affect the financial strength of corporate and consumer borrowers.
Total net charge-offs in the third quarter of 2025 were $536 million, compared with $554 million in the second quarter of 2025 and $564 million in the third quarter of 2024. The net charge-off ratio was 0.56 percent in the third quarter of 2025 compared with 0.59 percent in the second quarter of 2025 and 0.60 percent in the third quarter of 2024. The decrease in net charge-offs on a linked quarter basis was driven by lower net charge-offs on commercial loans and credit card portfolios, partially offset by increased net charge-offs in commercial real estate loans. The decrease in net charge-offs on a year-over-year basis primarily reflected higher recoveries on commercial loans and credit card portfolios in the current period.
The allowance for credit losses was $7,897 million at September 30, 2025, compared with $7,862 million at June 30, 2025, and $7,927 million at September 30, 2024. The increase in the allowance for credit losses on a linked quarter basis was primarily driven by portfolio growth. The decrease in the allowance for credit losses on a year-over-year basis was primarily driven by improved portfolio credit quality, including the resolution of problem assets. The ratio of the allowance for credit losses to period-end loans was 2.06 percent at September 30, 2025, compared with 2.07 percent at June 30, 2025, and 2.12 percent at September 30, 2024. The ratio of the allowance for credit losses to nonperforming loans was 490 percent at September 30, 2025, compared with 480 percent at June 30, 2025, and 438 percent at September 30, 2024.
Nonperforming assets were $1,654 million at September 30, 2025, compared with $1,680 million at June 30, 2025, and $1,848 million at September 30, 2024. The ratio of nonperforming assets to loans and other real estate was 0.43 percent at September 30, 2025, compared with 0.44 percent at June 30, 2025, and 0.49 percent at September 30, 2024. The decreases in nonperforming assets on a linked quarter and year-over-year basis were primarily due to the resolution of commercial real estate nonperforming loans, partially offset by higher commercial nonperforming loans. Accruing loans 90 days or more past due were $840 million at September 30, 2025, compared with $966 million at June 30, 2025, and $738 million at September 30, 2024.
The decrease in accruing loans 90 days or more past due on a linked quarter basis was primarily due to the resolution of a prior quarter commercial real estate administrative delinquency. The increase in accruing loans 90 days or more past due on a year-over-year basis was due to higher residential mortgage delinquencies primarily related to forbearance extended to borrowers affected by California wildfires.
10
U.S. Bancorp Third Quarter 2025 Results
DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES
(Percent)
Sep 30 2025
Jun 30 2025
Mar 31 2025
Dec 31 2024
Sep 30 2024
Delinquent loan ratios - 90 days or more past due
Commercial
.06
.06
.07
.07
.07
Commercial real estate
.04
.28
.01
.02
.02
Residential mortgages
.26
.28
.19
.17
.15
Credit card
1.26
1.24
1.40
1.43
1.36
Other retail
.13
.13
.14
.15
.14
Total loans
.22
.25
.21
.21
.20
Delinquent loan ratios - 90 days or more past due and nonperforming loans
Commercial
.55
.45
.49
.55
.51
Commercial real estate
1.24
1.86
1.62
1.70
1.85
Residential mortgages
.38
.40
.31
.30
.28
Credit card
1.26
1.24
1.40
1.43
1.36
Other retail
.51
.51
.50
.50
.48
Total loans
.64
.68
.65
.69
.68
ASSET QUALITY (a)
($ in millions)
Sep 30 2025
Jun 30 2025
Mar 31 2025
Dec 31 2024
Sep 30 2024
Nonperforming loans
Commercial
$708
$548
$589
$644
$560
Lease financing
25
27
27
26
25
Total commercial
733
575
616
670
585
Commercial mortgages
558
732
745
789
853
Construction and development
21
31
35
35
72
Total commercial real estate
579
763
780
824
925
Residential mortgages
143
145
141
152
154
Credit card
—
—
—
—
—
Other retail
155
154
148
147
145
Total nonperforming loans
1,610
1,637
1,685
1,793
1,809
Other real estate
23
21
23
21
21
Other nonperforming assets
21
22
19
18
18
Total nonperforming assets
$1,654
$1,680
$1,727
$1,832
$1,848
Accruing loans 90 days or more past due
$840
$966
$796
$810
$738
Nonperforming assets to loans plus ORE (%)
.43
.44
.45
.48
.49
(a) Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due
11
U.S. Bancorp Third Quarter 2025 Results
COMMON SHARES
(Millions)
3Q 2025
2Q 2025
1Q 2025
4Q 2024
3Q 2024
Beginning shares outstanding
1,558
1,560
1,560
1,561
1,560
Shares issued for stock incentive plans,
acquisitions and other corporate purposes
—
—
4
2
1
Shares repurchased
(2)
(2)
(4)
(3)
—
Ending shares outstanding
1,556
1,558
1,560
1,560
1,561
CAPITAL POSITION
Preliminary Data
($ in millions)
Sep 30 2025
Jun 30 2025
Mar 31 2025
Dec 31 2024
Sep 30 2024
Total U.S. Bancorp shareholders' equity
$63,340
$61,438
$60,096
$58,578
$58,859
Basel III Standardized Approach (a)
Common equity tier 1 capital
$50,587
$49,382
$48,482
$47,877
$47,164
Tier 1 capital
57,839
56,630
55,736
55,129
54,416
Total risk-based capital
66,820
65,752
64,989
64,375
63,625
Fully implemented common equity tier 1 capital ratio (a)
10.9
%
10.7
%
10.8
%
10.5
% (b)
10.5
% (b)
Tier 1 capital ratio
12.4
12.3
12.4
12.2
12.2
Total risk-based capital ratio
14.4
14.3
14.4
14.3
14.2
Leverage ratio
8.6
8.5
8.4
8.3
8.3
Common equity to assets
8.1
8.0
7.9
7.6
7.6
Tangible common equity to tangible assets (b)
6.4
6.1
6.0
5.8
5.7
Tangible common equity to risk-weighted assets (b)
9.3
9.0
8.9
8.5
8.6
Common equity tier 1 capital to risk-weighted assets, reflecting transitional regulatory capital requirements related to the current expected credit losses methodology (a)
—
—
—
10.6
10.5
(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 $63.3 billion at September 30, 2025, compared with $61.4 billion at June 30, 2025, and $58.9 billion at September 30, 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 under this program, 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 10.9 percent at September 30, 2025, compared with 10.7 percent at June 30, 2025, and 10.5 percent at September 30, 2024.
12
U.S. Bancorp Third Quarter 2025 Results
Investor Conference Call
On Thursday, October 16, 2025 at 8 a.m. CT, Chief Executive Officer Gunjan Kedia and Vice Chair and Chief Financial Officer John Stern will host a conference call to review the financial results. The live conference call will be available online or 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 Thursday, October 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 $695 billion in assets as of September 30, 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, targets, initiatives 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;
•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;
•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;
•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;
•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;
13
U.S. Bancorp Third Quarter 2025 Results
•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.
14
U.S. Bancorp Third Quarter 2025 Results
Non-GAAP Financial Measures
In addition to capital ratios defined by banking regulators, 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 capital 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 capital 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 impairment of financial instruments based on the current expected credit losses methodology.
As a result, these capital 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.
15
CONSOLIDATED STATEMENT OF INCOME
(Dollars and Shares in Millions, Except Per Share Data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(Unaudited)
2025
2024
2025
2024
Interest Income
Loans
$5,688
$5,862
$16,769
$17,335
Loans held for sale
35
45
122
123
Investment securities
1,392
1,316
4,055
3,785
Other interest income
812
863
2,101
2,592
Total interest income
7,927
8,086
23,047
23,835
Interest Expense
Deposits
2,648
3,004
7,700
8,916
Short-term borrowings
328
284
868
850
Long-term debt
729
663
2,114
1,926
Total interest expense
3,705
3,951
10,682
11,692
Net interest income
4,222
4,135
12,365
12,143
Provision for credit losses
571
557
1,609
1,678
Net interest income after provision for credit losses
3,651
3,578
10,756
10,465
Noninterest Income
Card revenue
440
426
1,280
1,246
Corporate payment products revenue
195
203
576
582
Merchant processing services
463
440
1,352
1,295
Trust and investment management fees
730
667
2,113
1,957
Service charges
333
302
984
939
Capital markets revenue
434
397
1,206
1,159
Mortgage banking revenue
180
155
515
511
Investment products fees
97
84
274
243
Securities gains (losses), net
(7)
(119)
(64)
(153)
Other
213
143
602
434
Total noninterest income
3,078
2,698
8,838
8,213
Noninterest Expense
Compensation and employee benefits
2,561
2,637
7,798
7,947
Net occupancy and equipment
300
317
907
929
Professional services
117
130
324
356
Marketing and business development
175
165
518
459
Technology and communications
560
524
1,627
1,540
Other intangibles
125
142
372
430
Merger and integration charges
—
—
—
155
Other
359
289
1,064
1,061
Total noninterest expense
4,197
4,204
12,610
12,877
Income before income taxes
2,532
2,072
6,984
5,801
Applicable income taxes
524
350
1,439
1,142
Net income
2,008
1,722
5,545
4,659
Net (income) loss attributable to noncontrolling interests
(7)
(8)
(20)
(23)
Net income attributable to U.S. Bancorp
$2,001
$1,714
$5,525
$4,636
Net income applicable to U.S. Bancorp common shareholders
$1,893
$1,601
$5,229
$4,328
Earnings per common share
$1.22
$1.03
$3.36
$2.77
Diluted earnings per common share
$1.22
$1.03
$3.35
$2.77
Dividends declared per common share
$.52
$.50
$1.52
$1.48
Average common shares outstanding
1,557
1,561
1,558
1,560
Average diluted common shares outstanding
1,557
1,561
1,559
1,561
16
CONSOLIDATED ENDING BALANCE SHEET
(Dollars in Millions)
September 30,
2025
December 31,
2024
September 30,
2024
Assets
(Unaudited)
(Unaudited)
Cash and due from banks
$66,637
$56,502
$73,562
Investment securities
Held-to-maturity
76,931
78,634
80,025
Available-for-sale
89,065
85,992
81,704
Loans held for sale
2,490
2,573
3,211
Loans
Commercial
148,414
139,484
133,638
Commercial real estate
48,244
48,859
50,619
Residential mortgages
115,046
118,813
118,034
Credit card
30,594
30,350
29,037
Other retail
40,219
42,326
42,836
Total loans
382,517
379,832
374,164
Less allowance for loan losses
(7,557)
(7,583)
(7,560)
Net loans
374,960
372,249
366,604
Premises and equipment
3,695
3,565
3,585
Goodwill
12,634
12,536
12,573
Other intangible assets
5,152
5,547
5,488
Other assets
63,793
60,720
59,717
Total assets
$695,357
$678,318
$686,469
Liabilities and Shareholders' Equity
Deposits
Noninterest-bearing
$91,550
$84,158
$86,838
Interest-bearing
434,599
434,151
434,293
Total deposits
526,149
518,309
521,131
Short-term borrowings
15,449
15,518
23,708
Long-term debt
62,535
58,002
54,839
Other liabilities
27,426
27,449
27,470
Total liabilities
631,559
619,278
627,148
Shareholders' equity
Preferred stock
6,808
6,808
6,808
Common stock
21
21
21
Capital surplus
8,745
8,715
8,729
Retained earnings
79,742
76,863
76,057
Less treasury stock
(24,228)
(24,065)
(24,010)
Accumulated other comprehensive income (loss)
(7,748)
(9,764)
(8,746)
Total U.S. Bancorp shareholders' equity
63,340
58,578
58,859
Noncontrolling interests
458
462
462
Total equity
63,798
59,040
59,321
Total liabilities and equity
$695,357
$678,318
$686,469
17
NON-GAAP FINANCIAL MEASURES
(Dollars in Millions, Unaudited)
September 30,
2025
June 30,
2025
March 31,
2025
December 31,
2024
September 30,
2024
Total equity
$63,798
$61,896
$60,558
$59,040
$59,321
Preferred stock
(6,808)
(6,808)
(6,808)
(6,808)
(6,808)
Noncontrolling interests
(458)
(458)
(462)
(462)
(462)
Common equity (a)
56,532
54,630
53,288
51,770
52,051
Goodwill (net of deferred tax liability) (1)
(11,603)
(11,613)
(11,521)
(11,508)
(11,540)
Intangible assets (net of deferred tax liability), other than mortgage servicing rights
(1,605)
(1,699)
(1,761)
(1,846)
(1,944)
Tangible common equity (b)
43,324
41,318
40,006
38,416
38,567
Common equity tier 1 capital, determined in accordance with transitional regulatory capital requirements related to the current expected credit losses methodology implementation
47,877
47,164
Adjustments (2)
(433)
(433)
Common equity tier 1 capital, reflecting the full implementation of the current expected credit losses methodology (c)
47,444
46,731
Total assets (d)
695,357
686,370
676,489
678,318
686,469
Goodwill (net of deferred tax liability) (1)
(11,603)
(11,613)
(11,521)
(11,508)
(11,540)
Intangible assets (net of deferred tax liability), other than mortgage servicing rights
(1,605)
(1,699)
(1,761)
(1,846)
(1,944)
Tangible assets (e)
682,149
673,058
663,207
664,964
672,985
Risk-weighted assets, determined in accordance with prescribed regulatory capital requirements effective for the Company (f)
465,092
*
459,521
450,290
450,498
447,476
Adjustments (3)
(368)
(368)
Risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (g)
450,130
447,108
Common shares outstanding (h)
1,556
1,558
1,560
1,560
1,561
Ratios *
Common equity to assets (a)/(d)
8.1
%
8.0
%
7.9
%
7.6
%
7.6
%
Tangible common equity to tangible assets (b)/(e)
6.4
6.1
6.0
5.8
5.7
Tangible common equity to risk-weighted assets (b)/(f)
9.3
9.0
8.9
8.5
8.6
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (c)/(g)
10.5
10.5
Tangible book value per common share (b)/(h)
$27.84
$26.52
$25.64
$24.63
$24.71
Three Months Ended
September 30,
2025
June 30,
2025
March 31,
2025
December 31,
2024
September 30,
2024
Net income applicable to U.S. Bancorp common shareholders
$1,893
$1,733
$1,603
$1,581
$1,601
Intangibles amortization (net-of-tax)
99
98
97
110
112
Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization
1,992
1,831
1,700
1,691
1,713
Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangible amortization (i)
7,903
7,344
6,894
6,727
6,815
Average total equity
63,101
61,356
60,071
59,272
58,744
Average preferred stock
(6,808)
(6,808)
(6,808)
(6,808)
(6,808)
Average noncontrolling interests
(458)
(457)
(460)
(460)
(461)
Average goodwill (net of deferred tax liability) (1)
(11,609)
(11,544)
(11,513)
(11,515)
(11,494)
Average intangible assets (net of deferred tax liability), other than mortgage servicing rights
(1,659)
(1,734)
(1,806)
(1,885)
(1,981)
Average tangible common equity (j)
42,567
40,813
39,484
38,604
38,000
Return on tangible common equity (i)/(j)
18.6
%
18.0
%
17.5
%
17.4
%
17.9
%
Net interest income
$4,222
$4,051
$4,092
$4,146
$4,135
Taxable-equivalent adjustment (4)
29
29
30
30
31
Net interest income, on a taxable-equivalent basis
4,251
4,080
4,122
4,176
4,166
Net interest income, on a taxable-equivalent basis (as calculated above)
4,251
4,080
4,122
4,176
4,166
Noninterest income
3,078
2,924
2,836
2,833
2,698
Less: Securities gains (losses), net
(7)
(57)
—
(1)
(119)
Total net revenue, excluding net securities gains (losses) (k)
7,336
7,061
6,958
7,010
6,983
Noninterest expense (l)
4,197
4,181
4,232
4,311
4,204
Less: Intangible amortization
125
124
123
139
142
Noninterest expense, excluding intangible amortization (m)
4,072
4,057
4,109
4,172
4,062
Efficiency ratio (l)/(k)
57.2
%
59.2
%
60.8
%
61.5
%
60.2
%
Tangible efficiency ratio (m)/(k)
55.5
57.5
59.1
59.5
58.2
* 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.
18
NON-GAAP FINANCIAL MEASURES
Nine Months Ended
(Dollars and Shares in Millions, Except Per Share Data, Unaudited)
September 30,
2024
Net income applicable to U.S. Bancorp common shareholders
$4,328
Less: Notable items, including the impact of earnings allocated to participating stock awards (1)
(217)
Net income applicable to U.S. Bancorp common shareholders, excluding notable items (a)
4,545
Average diluted common shares outstanding (b)
1,561
Diluted earnings per common share, excluding notable items (a)/(b)
$2.91
Three Months Ended
September 30,
2025
September 30,
2024
Percent Change
Net interest income
$4,222
$4,135
Taxable-equivalent adjustment (2)
29
31
Net interest income, on a taxable-equivalent basis
4,251
4,166
Net interest income, on a taxable-equivalent basis (as calculated above)
4,251
4,166
Noninterest income
3,078
2,698
Total net revenue
7,329
6,864
6.8
%
(c)
Less: Securities gains (losses), net
(7)
(119)
Total net revenue, excluding securities gains (losses), net
7,336
6,983
5.1
%
(d)
Noninterest expense
4,197
4,204
(0.2)
%
(e)
Operating leverage (c) - (e)
7.0
%
Operating leverage, excluding securities gains (losses) (d) - (e)
5.3
%
(1)Notable items of $291 million ($218 million net-of-tax) for the nine months ended September 30, 2024 included $155 million of merger and integration-related charges and a $136 million charge for the increase in FDIC special assessment.
(2)Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes.
19
Business Segment Schedules
Third Quarter 2025
WEALTH, CORPORATE, COMMERCIAL AND
INSTITUTIONAL BANKING
CONSUMER AND BUSINESS BANKING
PAYMENT SERVICES
TREASURY AND CORPORATE SUPPORT
BUSINESS SEGMENT FINANCIAL PERFORMANCE
Preliminary data
($ in millions)
Net Income Attributable
to U.S. Bancorp
Percent Change
Net Income Attributable to U.S. Bancorp
Business Segment
3Q
2025
2Q
2025
3Q
2024
3Q25 vs 2Q25
3Q25 vs 3Q24
YTD
2025
YTD
2024
Percent Change
Wealth, Corporate, Commercial and Institutional Banking
$1,162
$1,087
$1,194
6.9
(2.7)
$3,433
$3,476
(1.2)
Consumer and Business Banking
465
474
485
(1.9)
(4.1)
1,360
1,460
(6.8)
Payment Services
326
343
304
(5.0)
7.2
1,023
854
19.8
Treasury and Corporate Support
48
(89)
(269)
nm
nm
(291)
(1,154)
74.8
Consolidated Company
$2,001
$1,815
$1,714
10.2
16.7
$5,525
$4,636
19.2
Income Before Provision
and Taxes
Percent Change
Income Before Provision
and Taxes
3Q
2025
2Q
2025
3Q
2024
3Q25 vs 2Q25
3Q25 vs 3Q24
YTD
2025
YTD
2024
Percent Change
Wealth, Corporate, Commercial and Institutional Banking
$1,746
$1,633
$1,686
6.9
3.6
$4,968
$4,970
—
Consumer and Business Banking
681
671
665
1.5
2.4
1,976
2,049
(3.6)
Payment Services
843
842
810
.1
4.1
2,474
2,290
8.0
Treasury and Corporate Support
(138)
(323)
(501)
57.3
72.5
(737)
(1,740)
57.6
Consolidated Company
$3,132
$2,823
$2,660
10.9
17.7
$8,681
$7,569
14.7
Business Segments
The Company’s major business segments are Wealth, Corporate, Commercial and Institutional Banking, Consumer and Business Banking, Payment Services, and Treasury and Corporate Support. Business segment results are derived from the Company’s business unit profitability reporting systems by specifically attributing managed balance sheet assets, deposits and other liabilities and their related income or expense. Designations, assignments and allocations change from time to time as management systems are enhanced, methods of evaluating performance or product lines change or business segments are realigned to better respond to the Company’s diverse customer base. During 2025 and 2024, certain organization and methodology changes were made, including revising the Company's business segment funds transfer-pricing methodology related to deposits and loans during the second quarter of 2024. Prior period results were recast and presented on a comparable basis.
21
WEALTH, CORPORATE, COMMERCIAL AND INSTITUTIONAL BANKING
Preliminary data
($ in millions)
Percent Change
3Q
2025
2Q
2025
3Q
2024
3Q25 vs 2Q25
3Q25 vs 3Q24
YTD
2025
YTD
2024
Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)
$1,823
$1,783
$1,889
2.2
(3.5)
$5,363
$5,679
(5.6)
Noninterest income
1,256
1,198
1,145
4.8
9.7
3,620
3,387
6.9
Total net revenue
3,079
2,981
3,034
3.3
1.5
8,983
9,066
(.9)
Noninterest expense
1,333
1,348
1,348
(1.1)
(1.1)
4,015
4,096
(2.0)
Income before provision and taxes
1,746
1,633
1,686
6.9
3.6
4,968
4,970
—
Provision for credit losses
197
183
94
7.7
nm
390
335
16.4
Income before income taxes
1,549
1,450
1,592
6.8
(2.7)
4,578
4,635
(1.2)
Income taxes and taxable-equivalent adjustment
387
363
398
6.6
(2.8)
1,145
1,159
(1.2)
Net income
1,162
1,087
1,194
6.9
(2.7)
3,433
3,476
(1.2)
Net (income) loss attributable to noncontrolling interests
—
—
—
—
—
—
—
—
Net income attributable to U.S. Bancorp
$1,162
$1,087
$1,194
6.9
(2.7)
$3,433
$3,476
(1.2)
Average Balance Sheet Data
Loans
$184,442
$181,268
$171,898
1.8
7.3
$181,266
$172,285
5.2
Other earning assets
10,734
12,778
10,740
(16.0)
(.1)
11,819
9,693
21.9
Goodwill
4,826
4,826
4,825
—
—
4,825
4,825
—
Other intangible assets
772
817
955
(5.5)
(19.2)
817
1,007
(18.9)
Assets
212,924
212,145
200,267
.4
6.3
211,262
200,950
5.1
Noninterest-bearing deposits
55,329
54,409
54,375
1.7
1.8
54,966
56,769
(3.2)
Interest-bearing deposits
217,748
210,238
217,180
3.6
.3
214,765
214,975
(.1)
Total deposits
273,077
264,647
271,555
3.2
.6
269,731
271,744
(.7)
Total U.S. Bancorp shareholders' equity
22,130
21,823
21,280
1.4
4.0
21,837
21,508
1.5
Wealth, Corporate, Commercial and Institutional Banking provides core banking, specialized lending, transaction and payment processing, capital markets, asset management, and brokerage and investment related services to wealth, middle market, large corporate, commercial real estate, government and institutional clients.
Wealth, Corporate, Commercial and Institutional Banking generated $1,746 million of income before provision and taxes in the third quarter of 2025, compared with $1,686 million in the third quarter of 2024, and contributed $1,162 million of the Company’s net income in the third quarter of 2025. The provision for credit losses increased $103 million compared with the third quarter of 2024 primarily due to increased reserves and charge-offs on select problem assets. Total net revenue was $45 million (1.5 percent) higher in the third quarter of 2025 due to a decrease of $66 million (3.5 percent) in net interest income that was more than offset by an increase of $111 million (9.7 percent) in noninterest income.
Net interest income decreased primarily due to higher funding costs. Noninterest income increased primarily due to business growth and favorable market conditions in trust and investment management fees, higher treasury management fees in service charges, and higher corporate bond underwriting fees and syndication activity in capital markets revenue. Noninterest expense decreased $15 million (1.1 percent) compared with the third quarter of 2024 primarily due to lower net shared services expense.
22
CONSUMER AND BUSINESS BANKING
Preliminary data
($ in millions)
Percent Change
3Q
2025
2Q
2025
3Q
2024
3Q25 vs 2Q25
3Q25 vs 3Q24
YTD
2025
YTD
2024
Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)
$1,849
$1,842
$1,928
.4
(4.1)
$5,459
$5,712
(4.4)
Noninterest income
436
407
401
7.1
8.7
1,251
1,239
1.0
Total net revenue
2,285
2,249
2,329
1.6
(1.9)
6,710
6,951
(3.5)
Noninterest expense
1,604
1,578
1,664
1.6
(3.6)
4,734
4,902
(3.4)
Income before provision and taxes
681
671
665
1.5
2.4
1,976
2,049
(3.6)
Provision for credit losses
61
39
18
56.4
nm
162
102
58.8
Income before income taxes
620
632
647
(1.9)
(4.2)
1,814
1,947
(6.8)
Income taxes and taxable-equivalent adjustment
155
158
162
(1.9)
(4.3)
454
487
(6.8)
Net income
465
474
485
(1.9)
(4.1)
1,360
1,460
(6.8)
Net (income) loss attributable to noncontrolling interests
—
—
—
—
—
—
—
—
Net income attributable to U.S. Bancorp
$465
$474
$485
(1.9)
(4.1)
$1,360
$1,460
(6.8)
Average Balance Sheet Data
Loans
$145,900
$149,475
$155,240
(2.4)
(6.0)
$149,731
$155,037
(3.4)
Other earning assets
2,331
4,875
2,738
(52.2)
(14.9)
2,997
2,300
30.3
Goodwill
4,326
4,326
4,326
—
—
4,326
4,326
—
Other intangible assets
4,223
4,277
4,405
(1.3)
(4.1)
4,288
4,611
(7.0)
Assets
158,749
164,989
168,871
(3.8)
(6.0)
163,382
168,917
(3.3)
Noninterest-bearing deposits
19,642
19,619
20,673
.1
(5.0)
19,465
20,955
(7.1)
Interest-bearing deposits
202,321
200,751
199,327
.8
1.5
200,658
199,319
.7
Total deposits
221,963
220,370
220,000
.7
.9
220,123
220,274
(.1)
Total U.S. Bancorp shareholders' equity
13,363
13,556
14,244
(1.4)
(6.2)
13,540
14,550
(6.9)
Consumer and Business Banking comprises consumer banking, small business banking and consumer lending. Products and services are delivered through banking offices, telephone servicing and sales, online services, direct mail, ATMs, mobile devices, distributed mortgage loan officers, and intermediary relationships including auto dealerships, mortgage banks, and strategic business partners.
Consumer and Business Banking generated $681 million of income before provision and taxes in the third quarter of 2025, compared with $665 million in the third quarter of 2024, and contributed $465 million of the Company’s net income in the third quarter of 2025. The provision for credit losses increased $43 million compared with the third quarter of 2024 primarily due to less favorable trends in housing prices and higher credit losses. Total net revenue was lower by $44 million (1.9 percent) in the third quarter of 2025 due to a decrease of $79 million (4.1 percent) in net interest income partially offset by an increase of $35 million (8.7 percent) in noninterest income.
Net interest income decreased primarily due to loan sales in the second quarter of 2025. Noninterest income increased primarily due to higher deposit service charges and mortgage banking revenue, due to the change in fair value of mortgage servicing rights, net of hedging activities. Noninterest expense decreased $60 million (3.6 percent) primarily due to lower compensation and employee benefits expense and net occupancy and equipment expense.
23
PAYMENT SERVICES
Preliminary data
($ in millions)
Percent Change
3Q
2025
2Q
2025
3Q
2024
3Q25 vs 2Q25
3Q25 vs 3Q24
YTD
2025
YTD
2024
Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)
$781
$730
$727
7.0
7.4
$2,253
$2,102
7.2
Noninterest income
1,106
1,116
1,073
(.9)
3.1
3,257
3,144
3.6
Total net revenue
1,887
1,846
1,800
2.2
4.8
5,510
5,246
5.0
Noninterest expense
1,044
1,004
990
4.0
5.5
3,036
2,956
2.7
Income before provision and taxes
843
842
810
.1
4.1
2,474
2,290
8.0
Provision for credit losses
408
384
404
6.3
1.0
1,109
1,151
(3.6)
Income before income taxes
435
458
406
(5.0)
7.1
1,365
1,139
19.8
Income taxes and taxable-equivalent adjustment
109
115
102
(5.2)
6.9
342
285
20.0
Net income
326
343
304
(5.0)
7.2
1,023
854
19.8
Net (income) loss attributable to noncontrolling interests
—
—
—
—
—
—
—
—
Net income attributable to U.S. Bancorp
$326
$343
$304
(5.0)
7.2
$1,023
$854
19.8
Average Balance Sheet Data
Loans
$42,957
$42,224
$41,652
1.7
3.1
$42,267
$40,766
3.7
Other earning assets
5
5
8
—
(37.5)
22
92
(76.1)
Goodwill
3,482
3,425
3,370
1.7
3.3
3,433
3,343
2.7
Other intangible assets
260
258
266
.8
(2.3)
256
282
(9.2)
Assets
48,424
47,835
47,195
1.2
2.6
47,700
46,704
2.1
Noninterest-bearing deposits
2,427
2,511
2,653
(3.3)
(8.5)
2,539
2,716
(6.5)
Interest-bearing deposits
95
95
95
—
—
95
96
(1.0)
Total deposits
2,522
2,606
2,748
(3.2)
(8.2)
2,634
2,812
(6.3)
Total U.S. Bancorp shareholders' equity
10,318
10,234
9,958
.8
3.6
10,261
9,955
3.1
Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate, government and purchasing card services and merchant processing.
Payment Services generated $843 million of income before provision and taxes in the third quarter of 2025, compared with $810 million in the third quarter of 2024, and contributed $326 million of the Company’s net income in the third quarter of 2025. The provision for credit losses was relatively stable, increasing $4 million (1.0 percent) compared with the third quarter of 2024. Total net revenue increased $87 million (4.8 percent) in the third quarter of 2025 due to higher net interest income of $54 million (7.4 percent) and higher noninterest income of $33 million (3.1 percent). Net interest income increased primarily due to higher average loan balances and lower funding costs.
Noninterest income increased primarily due to increases in card revenue and merchant processing services due to favorable sales volume in both categories. Noninterest expense increased $54 million (5.5 percent) primarily due to higher marketing and business development expense and net shared services expense.
24
TREASURY AND CORPORATE SUPPORT
Preliminary data
($ in millions)
Percent Change
3Q
2025
2Q
2025
3Q
2024
3Q25 vs 2Q25
3Q25 vs 3Q24
YTD
2025
YTD
2024
Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)
($202)
($275)
($378)
26.5
46.6
($622)
($1,260)
50.6
Noninterest income
280
203
79
37.9
nm
710
443
60.3
Total net revenue
78
(72)
(299)
nm
nm
88
(817)
nm
Noninterest expense
216
251
202
(13.9)
6.9
825
923
(10.6)
Income (loss) before provision and taxes
(138)
(323)
(501)
57.3
72.5
(737)
(1,740)
57.6
Provision for credit losses
(95)
(105)
41
9.5
nm
(52)
90
nm
Income (loss) before income taxes
(43)
(218)
(542)
80.3
92.1
(685)
(1,830)
62.6
Income taxes and taxable-equivalent adjustment
(98)
(135)
(281)
27.4
65.1
(414)
(699)
40.8
Net income
55
(83)
(261)
nm
nm
(271)
(1,131)
76.0
Net (income) loss attributable to noncontrolling interests
(7)
(6)
(8)
(16.7)
12.5
(20)
(23)
13.0
Net income (loss) attributable to U.S. Bancorp
$48
($89)
($269)
nm
nm
($291)
($1,154)
74.8
Average Balance Sheet Data
Loans
$5,853
$5,562
$5,280
5.2
10.9
$5,639
$5,190
8.7
Other earning assets
225,295
217,155
219,624
3.7
2.6
219,982
218,717
.6
Goodwill
—
—
—
—
—
—
—
—
Other intangible assets
7
8
9
(12.5)
(22.2)
8
9
(11.1)
Assets
259,508
248,372
248,307
4.5
4.5
251,806
244,792
2.9
Noninterest-bearing deposits
2,492
2,578
3,238
(3.3)
(23.0)
2,598
2,600
(.1)
Interest-bearing deposits
11,728
12,689
11,216
(7.6)
4.6
12,001
11,146
7.7
Total deposits
14,220
15,267
14,454
(6.9)
(1.6)
14,599
13,746
6.2
Total U.S. Bancorp shareholders' equity
16,832
15,286
12,801
10.1
31.5
15,424
10,653
44.8
Treasury and Corporate Support includes the Company’s investment portfolios, funding, capital management, interest rate risk management, income taxes not allocated to the business segments, including most investments in tax-advantaged projects, and the residual aggregate of those expenses associated with corporate activities that are managed on a consolidated basis.
Treasury and Corporate Support generated a $138 million loss before provision and taxes in the third quarter of 2025, compared with a $501 million loss before provision and taxes in the third quarter of 2024, and recorded net income of $48 million in the third quarter of 2025. The provision for credit losses decreased $136 million compared with the third quarter of 2024 primarily due to a favorable loan portfolio mix. Total net revenue increased $377 million in the third quarter of 2025 due to an increase of $176 million (46.6 percent) in net interest income and an increase of $201 million in noninterest income. Net interest income increased primarily due to lower funding costs and fixed asset repricing.
The increase in noninterest income was primarily due to tax credit investment activity, capital markets revenue, and the impact of higher net securities losses in the third quarter of 2024. Noninterest expense increased $14 million (6.9 percent) compared with the third quarter of 2024 primarily due to lower compensation and employee benefits expense and marketing and business development expense, more than offset by higher other noninterest expense.
Income taxes are assessed to each business segment at a managerial tax rate of 25.0 percent with the residual tax expense or benefit to arrive at the consolidated effective tax rate included in Treasury and Corporate Support.
25
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | 0 | 0 |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | 0 |
| Recession recession, downturn, contraction, slowdown | 1 | 1 | 1 |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 4 | 4 | 1 |
| Buybacks share repurchase, buyback program | 1 | — | 1 |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor