Annual

Report
2024
LETTER TO SHAREHOLDERS

Andy Cecere
Chairman and Chief
Executive Officer

For the past eight years, I have had the privilege to wake up every
day and lead what I consider to be one of the best companies in
the financial services industry. It has been the honor of a lifetime,
and it carried important responsibilities: build on the foundation our
predecessors started, take advantage of the moments that will define
our present, and ensure our company’s strength and stability for years
to come. I look back with gratitude – recognizing the progress we
made on our goals, the dynamic years we experienced together,
and the milestones that are yet to be reached that someone else
will now lead the company through.
LETTER TO SHAREHOLDERS

As I prepare to transition the CEO title to Gunjan Kedia this spring,

I am both reflective and optimistic. I have spent nearly 40 years
working for this wonderful company, and you placed considerable
trust in me. Thank you. Along with our Managing Committee and
our entire team of more than 70,000 employees, we have worked I look back
hard to position the company for the best possible success. with gratitude –
Although some of those choices and investments came at a recognizing the
short-term cost, they have built a runway for long-term gains. progress we made
I am confident in Gunjan and the entire Managing Committee on our goals, the
and their ability to grow and lead U.S. Bancorp into a bright future.
dynamic years
U.S. Bancorp is a strong and respected company, as it has we experienced
been for decades. Our stock has traded on the New York Stock together, and the
Exchange for 40 years, and we continue to extend our reach milestones that are
far beyond what our institutional forerunners could have dreamed yet to be reached
at our founding in 1863. We are proud of our ability to consistently
that someone else
deliver solid financial results no matter the economic climate,
and we will continue to improve our performance. We invested
will now lead the
in the business, rebuilt capital following the MUFG Union Bank company through.”
acquisition, managed expenses to improve our efficiency, and
returned to delivering positive operating leverage in the second
half of 2024; we will continue to focus on actions to create value
even in the most challenging of times. That will position us well
for growth in 2025 and beyond.

We talked about our strategy to do so in September, when we

hosted our first Investor Day in five years. Our usual triennial
schedule was preempted first by COVID-19 and then by our
Union Bank acquisition, but getting back to New York City and
telling the U.S. Bank story to our investors and analysts was
a priority for our team. We have invested billions of dollars in
digital capabilities and technology. We have built scale through
acquisitions and innovative partnerships like those we have with
State Farm and Edward Jones. We have enhanced products and
services like the recent launches of U.S. Bank Smartly® and our
Business Access advisors. We also have spent considerable time
simplifying and optimizing our organization – aligning business
lines under Gunjan, centralizing our operations, and enhancing
our technology experiences for employees and clients.

1
LETTER TO SHAREHOLDERS

All these things came at a cost, whether in terms of resources,

capital or reprioritization. They were, however, the right actions
for our company. We took these steps without ever losing sight
of our foundational strengths in risk and financial discipline or of
our dedication to a culture of engagement and putting our clients
Our intent is to think
first. Which is why, now, we find ourselves at an inflection point. as one team, and
It is incumbent upon us to leverage all we have done to maintain more importantly,
a leadership role in the industry. The investments we have to deliver for our
made over the past seven years are now fully loaded into our clients based
run rate and revenue growth will come through our unique, on their needs,
interconnected businesses.
leveraging our
We have talked about being “one U.S. Bank” for many years. unique set of diverse
That means we bring the best of our products, services and businesses to help
relationships to our employees, clients and communities every them achieve their
day. Interconnectedness is the manifestation of the one U.S. Bank financial objectives.”
approach, and it is a focus Gunjan is bringing to the organization
as we head into the future. Our intent is to think as one team, and
more importantly, to deliver for our clients based on their needs,
leveraging our unique set of diverse businesses to help them
achieve their financial objectives.

This focus will help us deepen relationships, and it will allow us to

continue to offer a robust set of innovative solutions to customers.
It will enable us to strengthen partnerships – both inside our
physical branch footprint and beyond with digital offerings that
are some of the best in financial services. We aim to always be
nimble and relevant, so we can help clients of all types. That is
true whether it is an individual or family applying for their first
home mortgage or a multinational company seeking to make its
next big move.

Interconnectedness feeds our universal strategy that is enabled

by a unifying purpose and set of core values. It also extends to
our community and corporate responsibility initiatives. You will be
able to read more about this and all our community investment and
efforts in our next corporate responsibility report, which will be
released later this year.

2 U.S. Bancorp Annual Report 2024 | usbank.com/AR2024

LETTER TO SHAREHOLDERS

These achievements are possible only through the incredible

dedication and commitment of our employees. They believe in
serving our customers better than anyone else could serve them.
They do so the right way, and they treat each relationship like it
is with a family member or friend. Taking care of our employees’
Our growth
needs is equally important to me and our entire Managing strategies and
Committee, and we have made significant investments in goals are clear and
training and development, employee technology, and similar achievable. Our
experiences to make it easier for them to do their jobs and commitments to our
feel enriched while doing so. employees, clients
The combination of their talent and expertise, along with the and communities are
investments we have made, the strategy we have laid out, and as strong as ever.”
our outstanding leadership team gives me great confidence in
our future. We are focused on capitalizing on our scale advantages
and business optimization efforts to drive growth, efficiency and
solid financial results and returns. We are committed to creating
value for you.

The economic, regulatory and political environment around

us will continue to evolve. The industry and market challenges
affecting our operations will not abate – they may shift from
headwinds to tailwinds and back again, but that just means it
is imperative for us to be ready to perform in any environment.
Our growth strategies and goals are clear and achievable.
Our commitments to our employees, clients and communities
are as strong as ever. And we remain firmly dedicated to
delivering strong financial performance for our shareholders.

Thank you for choosing to invest in U.S. Bancorp. On behalf of

our team of more than 70,000 employees, we appreciate you and
your trust. I am confident in the company’s future as I step aside,
and I am eager to see the success the company will achieve with
Gunjan as CEO.

With deep appreciation and gratitude,

Andy Cecere
Chairman and CEO, U.S. Bancorp

3
FINANCIAL HIGHLIGHTS

$27.5B 17.2%
1

in net revenue return on tangible common equity

8.9%
decrease in noninterest
0.8%
increase in average total
expenses year-over-year deposits year-over-year

10.6%
Common Equity Tier 1 capital
4.0%
increase in noninterest
ratio (an increase of 70 basis income year-over-year
points throughout 2024)

$100M 10.4 %
1

in share buybacks increase in tangible book

completed value per share year-over-year

1. Return on tangible common equity and tangible book value per share are non-GAAP financial metrics. Please see Non-GAAP Financial Measures
beginning on page 57.

4 U.S. Bancorp Annual Report 2024 | usbank.com/AR2024

FINANCIAL SUMMARY
Year Ended December 31 2024 2023
(Dollars and Shares in Millions, Except Per Share Data) 2024 2023 2022 v 2023 v 2022

Net interest income ............................................................................ $16,289 $17,396 $14,728 (6.4)% 18.1%

Taxable-equivalent adjustment(a) ......................................................... 120 131 118 (8.4) 11.0
Net interest income (taxable-equivalent basis)(b) ............................... 16,409 17,527 14,846 (6.4) 18.1
Noninterest income ............................................................................ 11,046 10,617 9,456 4.0 12.3
Total net revenue .............................................................................. 27,455 28,144 24,302 (2.4) 15.8
Noninterest expense .......................................................................... 17,188 18,873 14,906 (8.9) 26.6
Provision for credit losses ................................................................... 2,238 2,275 1,977 (1.6) 15.1
Income taxes and taxable-equivalent adjustment .............................. 1,700 1,538 1,581 10.5 (2.7)
Net income ....................................................................................... 6,329 5,458 5,838 16.0 (6.5)
Net (income) loss attributable to noncontrolling interests ................ (30) (29) (13) (3.4) *
Net income attributable to U.S. Bancorp .......................................... $6,299 $5,429 $5,825 16.0 (6.8)
Net income applicable to U.S. Bancorp common shareholders ........ $5,909 $5,051 $5,501 17.0 (8.2)
Per Common Share
Earnings per share .............................................................................. $3.79 $3.27 $3.69 15.9% (11.4)%
Diluted earnings per share .................................................................. 3.79 3.27 3.69 15.9 (11.4)
Dividends declared per share ............................................................. 1.98 1.93 1.88 2.6 2.7
Book value per share(c)......................................................................... 33.19 31.13 28.71 6.6 8.4
Market value per share ....................................................................... 47.83 43.28 43.61 10.5 (.8)
Average common shares outstanding ................................................ 1,560 1,543 1,489 1.1 3.6
Average diluted common shares outstanding .................................... 1,561 1,543 1,490 1.2 3.6
Financial Ratios
Return on average assets .................................................................... .95% .82% .98%
Return on average common equity ..................................................... 11.7 10.8 12.6
Return on tangible common equity(b) .................................................. 17.2 16.9 17.0
Net interest margin (taxable-equivalent basis)(a) .................................. 2.70 2.90 2.72
Efficiency ratio(b) ................................................................................. 62.3 66.7 61.4
Average Balances
Loans .................................................................................................. $373,875 $381,275 $333,573 (1.9)% 14.3%
Investment securities(d) ....................................................................... 166,634 162,757 169,442 2.4 (3.9)
Earning assets .................................................................................... 606,641 605,199 545,343 .2 11.0
Assets ................................................................................................. 664,014 663,440 592,149 .1 12.0
Deposits ............................................................................................. 509,515 505,663 462,384 .8 9.4
Total U.S. Bancorp shareholders' equity .............................................. 57,206 53,660 50,416 6.6 6.4

Period End Balances

Loans .................................................................................................. $379,832 $373,835 $388,213 1.6% (3.7)%
Allowance for credit losses ................................................................. 7,925 7,839 7,404 1.1 5.9
Investment securities .......................................................................... 164,626 153,751 161,650 7.1 (4.9)
Assets ................................................................................................. 678,318 663,491 674,805 2.2 (1.7)
Deposits ............................................................................................. 518,309 512,312 524,976 1.2 (2.4)
Total U.S. Bancorp shareholders' equity .............................................. 58,578 55,306 50,766 5.9 8.9
Capital Ratios
Common equity tier 1 capital ............................................................. 10.6% 9.9% 8.4%
Tier 1 capital ...................................................................................... 12.2 11.5 9.8
Total risk-based capital ...................................................................... 14.3 13.7 11.9
Leverage ............................................................................................. 8.3 8.1 7.9
Total leverage exposure ...................................................................... 6.8 6.6 6.4
Tangible common equity to tangible assets(b) ...................................... 5.8 5.3 4.5
Tangible common equity to risk-weighted assets(b) ............................. 8.5 7.7 6.0
Common equity tier 1 capital to risk-weighted assets, reflecting the full
implementation of the current expected credit losses methodology(b) ...... 10.5 9.7 8.1
* Not meaningful
(a) 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.
(b) See Non-GAAP Financial Measures beginning on page 57.
(c) Calculated as U.S. Bancorp common shareholders' equity divided by common shares outstanding at end of the period.
(d) Excludes unrealized gains and losses on available-for-sale investment securities and any premiums or discounts recorded related to the transfer of investment securities
at fair value from available-for-sale to held-to-maturity. 5
Y O U R U.S. B A N K

Let us introduce ourselves

U.S. Bancorp is the parent company of U.S. Bank, the fifth largest commercial bank in the United States.
Our headquarters are in Minneapolis, but our more than 70,000 teammates are located globally. We’ve
been recognized for our digital innovation, customer service and community partnerships, and we’re
proud to be named one of the 2024 World’s Most Ethical Companies® by Ethisphere and one of the most
admired superregional banks by Fortune®. Our core businesses include Consumer and Business Banking,
Wealth, Corporate, Commercial and Institutional Banking and Payment Services. This diverse mix of
businesses is the key to how we deliver consistent financial performance, helping us put the power of one
U.S. Bank to work for you.

How each business line delivers for you Our clients

Our core revenue-generating business lines have more than
50 business areas within them that create “through-the-
cycle” earnings power. ~13M
consumer clients

Consumer and

~32%
Business Banking:
Consumer Banking, Consumer Lending
(Mortgage, Auto/RV), Business Banking,
~1.4M
business clients
Business Lending

~500K wealth clients

Wealth, Corporate, Commercial
and Institutional Banking:

~43%
Wealth Management, Asset Management,
Capital Markets, Global Fund Services,
Corporate Banking, Commercial Banking,
~45K
corporate and
Commercial Real Estate, Global Corporate institutional clients
Trust and Equipment Finance

Payment Services:

~25% Retail Payment Solutions, Merchant

Payment Services and Corporate Payment
and Treasury Solutions

Business line revenue percentages above for the year ended December 31, 2024, are non-GAAP financial measures, are given on a taxable-equivalent basis and
exclude Treasury and Corporate Support. See Non-GAAP Financial Measures beginning on page 57 for reconciliation.

6 U.S. Bancorp Annual Report 2024 | usbank.com/AR2024

Y O U R U.S. B A N K

Our demonstrated results

Consumer and Business Banking

#
4
deposit share
#
2
bank retail
#
5
SBA lender
#
1
mobile and online
within footprint1 mortgage lender2 ranked by banking4
volume3

Wealth, Corporate, Commercial and Institutional Banking

~ 90%
of Fortune
#
1
J.D. Power rated
#
1
in Corporate
#
4
investment grade
1,000 companies Wealth Advisor6 Trust markets syndicated
bank with us5 we serve7 loans8

Payment Services

#
3
U.S. Commercial
#
5
U.S. credit
#
1
freight payments
TO P
3
bank-owned U.S.
card issuer issuer provider merchant acquirer
ranked by ranked by ranked by ranked by
spend volume9 volume10 volume11 volume12

1. Based on FDIC Summary of Deposits survey within 26-state footprint per S&P Global Market Intelligence with deposits per branch capped at $250M.
FDIC data as of June 30, 2024; 2. Inside Mortgage Finance 3Q 2024. Based on dollar amount of transactions; 3. SBA Lender Report 2024; 4. Javelin Strategy
& Research, 2024 based on scores across six evaluation categories; 5. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse
products or services of, U.S. Bancorp; 6. J.D. Power 2024 U.S. full-service investor satisfaction study released on March 21, 2024 based on investors
surveyed from January 2023 – January 2024, who may be working with a financial advisor from U.S. Bank or its affiliate, U.S. Bancorp Investments; 7. U.S.
market share data sourced from Greenstreet ABAlert for the ABS/MBS and CLO rankings and Refinitiv for the Corporate and Municipal rankings. Rankings
based upon number of deals and volume in dollars. Data as of December 31, 2024; 8. LSEG/LPC as of September 30, 2024, based on number of deals;
9. Volume per Nilson Report (Issue 1263, May 2024); 10. Rankings are based on midyear 2024 V/MA issuer volume per Nilson Report (Issue 1271, September
2024). Includes consumer, small business and commercial volume; 11. Based on results for key competitors and company reports as of December 31, 2024;
12. Ranking assumes joint ventures are consolidated per Nilson Report (Issue 1260, March 2024).

7
 Building on our
strong foundation
With the second-oldest active banking charter in the United States, U.S. Bancorp
has long been a trusted financial partner. And while we have longevity, we’ve
also remained relevant. We’ve invested in digital capabilities like artificial
intelligence to create the types of experiences today’s consumers – our clients
and team members – expect. We’ve acquired scale, optimized our distribution
and developed strategic partnerships that have expanded our reach. We’ve
strategically grown our product set to meet the growing needs of our clients.
While these moves have required financial investment in recent years, they’ve
positioned us for long-term growth and efficiency in the years ahead. They’ve
also positioned us to add value for clients and you, our shareholders. In 2024,
we strengthened this base, executing with focus and the future in mind.

8 U.S. Bancorp Annual Report 2024 | usbank.com/AR2024

Strong financial position
CET1 capital ratio1
In 2024, we built on our strong capital base with levels above
the “well-capitalized” requirements. We grew our CET1 capital
ratio1 to 10.6% as of December 31, 2024, and we maintained a 10.6%
robust liquidity profile with abundant cash levels and low-cost
Return on tangible
borrowing capacity.
common equity2

Disciplined risk management

Our integrated approach to risk has delivered a proven record
17.2%
throughout economic cycles. We’re disciplined with our Fee income as a percent
underwriting, and that drives predictable credit performance of total net revenue3
with net charge-off rates that typically outperform our peers.
We proactively manage credit risk on a through-the-cycle basis.
And we’re equipped to meet increasing regulatory expectations
41%
while enabling business growth through effective change
1. As of December 31, 2024; Common
management and enterprise risk management routines. equity tier 1 capital to risk-weighted assets,
calculated in accordance with transitional
regulatory requirements related to the
Sustainable earnings power current expected credit losses methodology.
2. For full year 2024. Non-GAAP financial
Our diversified and unique business model has delivered consistent metric. See Non-GAAP Financial Measures
results even in challenging environments, thanks to a unique mix for reconciliation beginning on page 57.
of fee income businesses supporting our short- and long-term 3. Represents non-interest income, excluding
$154 million of securities losses, as a
growth. In 2024, fee income represented 41% of U.S. Bancorp percentage of total net revenue on a
total net revenue.3 taxable-equivalent basis for the year
ended December 31, 2024.
9
 Driving growth through an
interconnected approach
Growing our business is not only increasing revenue. It’s also about adding value
for our clients. It’s about making it easier for them to run their businesses, large
or small, streamlining processes, and making it simpler to do business with us.
When we effectively interconnect our solutions, we create significant value for
our clients, giving us the opportunity to grow with them.

California business owner Armando Silberman is one example. Mr. Silberman wanted to grow his import
and export irrigation equipment business. In 2022, he acquired Fallbrook Irrigation, based in north San Diego
County, and maintained the banking relationship with Union Bank for continuity. When U.S. Bank purchased
Union Bank in 2022, Mr. Silberman made the transition with us – and deepened his banking relationship. Since
becoming a U.S. Bank client, he’s benefited from new products and services at his disposal. He’s upgraded his
payment processing equipment, acquired a business credit card and expanded his online banking capabilities
– helping him add clients and employees.

10 U.S. Bancorp Annual Report 2024 | usbank.com/AR2024

E N H A N C I N G P R O D U C T I N N O VAT I O N A N D C O N N E C T I V I T Y

Stepping up our efforts the intricate business-to-business (B2B)

receivables process. With this new platform,
in the healthcare sector suppliers gain real-time visibility into their financial
In the third quarter of 2024, U.S. Bancorp acquired position and cash flow. The addition of U.S. Bank
Salucro Healthcare Solutions, LLC. The Tempe, Advanced Receivables comes as senior finance
Arizona-based company offers online billing and leaders across the country increase their focus
payments solutions for healthcare providers across on operational efficiency.
the country. Salucro had been a partner of Elavon,

44%
our merchant acquiring unit within the bank, and its
platform has been sold through Elavon as MedEpay of surveyed
Solutions™. The acquisition bolsters our focus on finance leaders
the healthcare industry, which we’ve served for say cutting costs and driving efficiencies
more than a century. Our diverse set of banking and in the finance function is a top priority and
payment services for hospital systems, insurers, that investing in new technology is the
medical equipment manufacturers and medical, primary solution to delivering savings.*
dental, and veterinary practices help our clients
*Data from the U.S. Bank CFO Insights report.
focus on their core mission of caring for patients.
Research we’ve done confirms that there is a
demand for services like MedEpay Solutions™:
Streamlining in-store and online
Of the 1,800 patients surveyed about the payments with new cloud-based
consumer payment experience:
payments platform

53%
of respondents said they Furthering our efforts to enhance product
want to receive billing
connectivity, Elavon launched its first unified
information by email
cloud-based payments platform in the fourth

32%
would switch providers for quarter of 2024. Elavon® Payment Gateway is a
one that offers payment single, omni-commerce gateway solution serving
plans and digital payments our clients globally. Designed to simplify and
enhance the payment experiences for businesses
of all sizes, Elavon® Payment Gateway enables
Additionally, we’ve refined how we work with
merchants to accept payments in-store, online
clients in the healthcare sector, creating healthcare
and via mobile devices, all within a scalable, single,
practices in both Business Banking and the
global platform. The platform offers scalability
Institutional Client Group to ensure we’re bringing
through online checkout experiences, software
our full suite of resources to clients.
development kits, plugins to e-commerce software
solutions and in-person payments powered by
Making accounts receivable the latest in Android Smart Terminal Device
more efficient for clients and technology. Another key benefit for businesses
and their customers is the simplicity of use with
their customers digital wallet integration, regional payment
We also delivered a new comprehensive accounts methods and pay by link functionality for easy,
receivable (AR) platform in 2024 to help suppliers fast checkout payments without complex
accelerate cash flow, cut costs through automation integrations. Elavon Payment Gateway will
and deliver better payment experiences. U.S. Bank be available in North America and Europe on
Advanced Receivables brings together the bank’s a phased-in basis.
payment and risk management capabilities with top
accounts receivable technology to improve

11
E N H A N C I N G P R O D U C T I N N O VAT I O N A N D C O N N E C T I V I T Y

Expanding working capital

financing options
Providing the best solutions for our clients
sometimes means partnering with other experts.
That’s why U.S. Bank teamed up with Levantor
Capital in 2024 to expand flexible working capital
financing options for U.S. Bank clients. The bank
offers a wide range of financing solutions and risk
management resources to help firms improve their
working capital along supply chains. However, in
recent years, working capital needs have expanded
as a result of growing supplier networks across
multiple jurisdictions. To meet the demand, we now
offer our clients Levantor’s sales finance solutions.
This provides additional options for trade partners
to optimize payment terms, including with suppliers U.S. Bank offers Paze℠ for
in jurisdictions outside the U.S. Bank network.
Levantor’s financing arrangements can help buyers cardholders and merchants
extend payment without reworking established Another 2024 highlight? We made it more
commercial and payment terms with their suppliers. convenient for consumers to make purchases
online, and for merchants to accept the payments.
We now offer central depository U.S. Bank clients with eligible credit and debit
cards now have access to Paze℠, a new
functions for securities issued streamlined online checkout solution. With Paze,
in France there is no manual card entry, no new password to
We also expanded our support for debt capital remember* and no need to download third-party
market transactions in 2024. U.S. Bank now has applications. The solution is integrated with their
the capability to offer this service for clients who U.S. Bank digital experience. U.S. Bank also
issue securities in the French central securities offers options for businesses to easily accept
depository (CSD) operated by Euroclear France. Paze transactions through a seamless integration
U.S. Bank Global Corporate Trust has offered with Elavon's Payment Gateway for e-commerce.
issuing and paying agency services for commercial Paze provides cardholders added security by
paper and medium-term notes, standalone tokenizing credit and debit card numbers, so
corporate bonds and structured finance in the 16-digit card number is not shared with the
international markets for more than 12 years. online merchant. Eligible U.S. Bank clients can
By establishing the infrastructure that supports activate Paze by signing in through the U.S. Bank
the TARGET2-Securities (T2S) platform, we will app, online at usbank.com or by checking out at
be able to add more European CSD markets in a participating retailer’s website. For merchants,
the future. We currently offer investment services there is no additional transaction fees to use
solutions from three European locations in Ireland, Paze as a checkout option.
Luxembourg and the United Kingdom. *Some merchants may require account setup to make purchases.

12 U.S. Bancorp Annual Report 2024 | usbank.com/AR2024

D E E P E N I N G O U R C L I E N T R E L AT I O N S H I P S

Growing our business

in California
Following our acquisition of Union Bank,
we grew our market share in California
to #4 in deposits, up from #101. We’ve
grown the number of net new clients
in California by more than 5%2. And our
data-driven collaboration across client
segment sales teams and coordinated
product and marketing initiatives
Our new industry-leading have helped us significantly deepen
relationships in the market:
card, savings combination

53%
consumer
We also increased ways for our clients to earn credit card
and save with the launch of two new U.S. Bank growth3
Smartly® products designed to work together to

27%
maximize credit card rewards while also helping increase in
clients earn more on their savings balances. business credit
The U.S. Bank Smartly™ Visa Signature® Card card relationships3

~3.1%
is a credit card that offers up to 4% cash back increase in wealth
on every purchase, and U.S. Bank Smartly® and commercial
Savings is a competitive rate savings account. revenue4
The combination provides an everyday banking
solution that empowers clients to manage their
money easily while maximizing cash-back rewards
A surge in SBA lending
based on total eligible balances with U.S. Bank.
in fiscal year 2024
U.S. Bank introduces new Powering human potential is part of our mission,
and we delivered in a big way with small businesses
Institutional Client Group this year. U.S. Bank grew Small Business Association
In the second quarter of 2024, U.S. Bank brought (SBA) lending in fiscal year 2024 to $708.2 million
deeply experienced relationship-management in Small Business Administration 7(a) loans. That’s
teams under one umbrella, part of a strategic effort up 74% from fiscal year 2023, according to the
to serve clients in a more holistic, consistent way. SBA. In doing so, we helped thousands of small
The Institutional Client Group works with internal business clients acquire new businesses, buy into
partners to deliver the entire bank – core banking, partnerships, purchase property and acquire the
capital markets, payment processing, and more – working capital needed to grow. The loan volume
to middle-market, large corporate and government was fifth-largest among all SBA lenders nationally.
organizations, helping them grow and thrive.

#1 inSatisfaction
Full-Service Wealth Management Firm Investor
in 2024 J.D. Power® study.
For J.D. Power 2024
award information,
visit jdpower.com/awards.

1. California percentage of deposits. Based on FDIC data as of June 2024 (#4 rank) vs. June 2022 (#10 rank); 2. YoY data as of September 30, 2024.
Net new client growth excludes Union Bank clients; 3. YoY data as of September 30, 2024; 4. YoY data as of April 30, 2024.

13
BROADENING OUR REACH

Expanding our alliance strategy with A new division to serve

a new Edward Jones partnership private capital asset managers
In 2024, we announced our newest strategic In the first quarter of 2024, we launched a new
partnership to serve the banking needs of division dedicated to serving private capital
Edward Jones customers by providing U.S. Bank firms and global asset managers. The Private
deposit and credit card solutions. Through the Capital and Global Asset Management division
alliance, more than 19,000 Edward Jones financial brings together teams across the bank that
advisors will have the unique opportunity and tools currently serve more than 200 private capital
to introduce co-branded U.S. Bank deposit and credit clients with a range of products and services,
card products to the firm’s approximately 8 million including fund custody and administration,
U.S. customers beginning later in 2025. This is the payment solutions for portfolio companies,
latest step in the U.S. Bank alliance strategy to extend lending and capital markets underwriting and
the company’s geographic reach and serve more distribution. The centralized group of private
clients, beyond our branch footprint. In 2020, capital experts streamlines the experience for
U.S. Bank launched what has been a successful asset managers and will help the bank grow
alliance with State Farm to assume the insurance its offering to additional private equity and
provider’s deposit and credit card account products. private credit firms and other diversified
investment managers.
Empowering more families to teach
kids about money with Greenlight Growing our reach through our
We’ve made it easier for families to teach positive
private label credit card business
financial habits to their kids thanks to a new In the summer of
partnership. U.S. Bank clients 2024, we helped
with Bank Smartly® and other drive growth
eligible checking accounts now through an upgrade
have complimentary access to of the mobile app
Greenlight’s award-winning debit for our private
card and money app for kids label credit card
within the U.S. Bank® Mobile business, Elan
App, which helps teach their Financial Services.
children critical financial skills. U.S. Bank became Elan, a part of Retail
the first financial institution to offer Greenlight™ Payment Solutions
through an embedded mobile app experience. (RPS), is a division
Used by more than 6 million parents and kids of U.S. Bank that provides more than 1,200
nationally, Greenlight provides kids and teens other banks and credit unions with a partner-
money management experience while parents branded, turnkey credit card program for their
enjoy convenience and peace-of-mind monitoring. consumer and small business customers. One in
Parents can easily send money, automate allowance eight financial institutions in the United States
payments, manage chores, set flexible spending has their credit card issued through Elan. Just
controls, get real-time notifications of all transactions three months after the new app launched, we
and more. Kids and teens can put money skills into increased unique logins by 150,000 across all
practice, learning to earn, save and spend wisely – partner card digital activity. Additionally, the
all with parental supervision. Kids can also take app has since increased its overall rating to
on interactive educational challenges and earn 4.8 out of 5 stars. The Elan app was rebuilt
rewards through an in-app financial literacy game with reusability in mind, leveraging the best
with a best-in-class curriculum. from our No. 1 rated U.S. Bank Mobile App.

14 U.S. Bancorp Annual Report 2024 | usbank.com/AR2024

 Investing in our future
We’re in an era where technology is reshaping every aspect of the financial industry
and changing the expectations of our customers and clients. To stay a step ahead,
we must anticipate what’s ahead. We’re focused on harnessing the power of these
advancements to help us operate with more efficiency, enhance the experience
our clients have and ensure we’re continually ready for what’s next. At the heart
of investing for the future is our investment in our people. Powering their potential
powers our potential.

Building AI and digital capabilities of the future

Artificial intelligence (AI) has become one of the hottest topics around
the world only recently, but use of AI has been common at U.S. Bank
for a while. We’ve actively invested in AI capabilities over the past
few years to help improve experiences for both our clients and team
members. In 2024, we took it a step further and created an artificial
~85%
of consumer clients
intelligence Center of Excellence (CoE), which oversees all aspects engage with us
of AI strategy and execution at the bank. Central to the CoE is a team digitally
of experts who research, develop, design, and implement use cases
and governance in partnership with technology, product and risk
teams throughout the company. Although there is still a lot to learn
about AI and its promise for the future of banking, we’re proud of our
efforts so far and are taking steps to enable growth and success. Right
2X growth
in consumer banking digital
now, we’re focused on implementing AI in the highest impact areas: sales share since 20195
using artificial intelligence in operations to reduce call center times,
increase developer productivity with faster code development and
testing, improve marketing performance with scaled personalization
4X growth
in small business banking digital
and reduce fraud with enhanced fraud identification.
sales share since 20195

Best-in-class smart assistant – Corporate Insight 20241 2X increase

in the number of consumer
#1 mobile and online banking – Javelin Strategy & Research 2024 2 and small business products
we can deliver digitally
#1 mobile and #2 online banking – Keynova 2024 3,4 since 20195

Meanwhile, our digital capabilities continue to set us apart and drive 1. Corporate Insight Mobile Monitor Competitive
growth. Our digital investments have opened doors nationally, helping Research Report: Mobile Virtual Assistants,
1Q 2024; 2. Javelin Strategy & Research’s
us expand from a physical regional branch network to multi-channel 2024 Online Banking Scorecard and 2024
distribution, nationally and internationally, through digital banking, Mobile Banking Scorecard; 3. Keynova Group
acquisitions and key partnerships. Our true competitive advantage is semiannual Mobile Banker Scorecard, March
2024; 4. Keynova Group 2Q 2024 Online Banker
our ability to reuse the capabilities we’ve built to date. When we create Scorecard, May 2024; 5. Growth rate represents
a new experience, about 80% of the build is simply assembling existing December 2019 through June 2024. Multiple of
components. This means we can create new opportunities for growth total sales where the account booked is a result
of a customer submitting an application through
without significant new costs, as well as get to market faster and with a digital channel (U.S. Bank Mobile App, online
more efficiency – all while maintaining a best-in-class experience. banking, and mobile web).

15
D R I V I N G O P E R AT I O N A L E X C E L L E N C E

Modernizing our technology for Recognized as a

an improved client experience great place to work
Along with our best-in-class digital products and services, we’ve Each year, we’re honored to be
been on a journey to modernize our technology and unify and on some of the most prestigious
streamline our core operating infrastructure. Our focus has been lists recognizing our inclusive
on creating software and hardware capabilities that can be easily and ethical culture.
scaled, enabling us to deliver enhancements and updates more
frequently. What this means is that we are investing in customer-
facing applications and connectivity interfaces with our many
partners to provide the best possible client experience online and
on mobile. Another example is our work to create a unified data
platform, which helps improve our back-end performance, create
better experiences for clients and reduce costs on our end. And
we’re updating our core systems that hold critical data like account
information, transactions and daily balances and migrating about
two-thirds of our applications to the cloud from on premises, so
we can get products to market much faster. We expect to realize
additional operating efficiencies once we complete our application
migration. Overall, our $2.5 billion annual investment in technology
enables business transformation, supports business growth, and
enhances our client and employee experiences.

Building our teams’ skills for the future

We’ve said it before, and we’ll say it again: Our people are our
greatest asset. They are the innovators and connectors. They
build best-in-class digital capabilities, deliver top-notch customer
service and help clients solve business challenges with our business
solutions. They make it possible for us to grow with our clients. To
attract and keep top talent, it’s critical we help our team members
to grow, too. In the second quarter of 2024, our Global Learning
and Development team launched Skills Academy, a new learning
platform providing team members access to training courses on
thousands of topics such as strengthening communication skills,
building expertise in various software programs, and learning about
products. To kick it off, we hosted a company-wide Development
Day. Almost 8,000 teammates showed up to see how the platform
can help them build new skills for their current and future roles. In
the first seven months of the platform, more than 38,000 people
completed more than 50,000 voluntary learning courses in the “World’s Most Ethical Companies” and
“Ethisphere” names and marks are registered
Skills Academy! Not surprisingly, topics like AI and digital literacy trademarks of Ethisphere LLC.
are some of the most popular content. From Fortune, ©2024 Fortune Media IP Limited.
All rights reserved. Used under license. Fortune ®
Team members are also loving our new Thrive Thursdays program. is a registered trademark and Fortune World’s
Each week, more than 1,000 people attend the virtual session. It’s Most Admired Companies™ is a trademark of
a chance to network, learn more about the company and connect Fortune Media IP Limited and are used under
license. Fortune and Fortune Media IP Limited
– to the mission and with each other. Topics vary from wellbeing to are not affiliated with, and do not endorse the
professional growth and learning more about parts of the business. products or services of, U.S. Bancorp.

16 U.S. Bancorp Annual Report 2024 | usbank.com/AR2024

 Investing in our
communities
Investing in the future includes the future of the communities we serve. There are a
lot of ways we do it, some visible and others more behind the scenes. Building homes.
Teaching financial literacy. Donating money and time to organizations that are the
heartbeat of communities. Whatever form, we’re thankful for the partners that help
us make a meaningful impact.

Serving those who served

In 2024, we also continued our work with military
nonprofits, Freedom Alliance, Operation Homefront
and VAREP, to give back to veterans through three
key programs:
• Driven to Serve
Sixteen veterans (or Gold
Star families) received a
payment-free new vehicle
in 2024. In total, we’ve
Increasing access to small business donated 84 new vehicles
since 2018.
funding and homeownership
• U.S. Bank Home
One way we’re contributing to communities
In 2024, we donated four mortgage-free homes
is through growing our team that helps small
to veterans, bringing our total to 30 homes valued
businesses grow. In 2024, we doubled our number
at a total of $8.1 million since 2013.
of Business Access Advisors (BAA) to 18 and
expanded to six more cities. The program, launched • Home repair
in 2021, works to help small businesses gain access Through our Repair Assistance for Military
to capital, financial education and connections that Personnel (RAMP) program, we have helped fund
can help their businesses flourish. Business Access critical home rehab projects including replacing
Advisors are connectors. They don’t sell products or roofs, repairing sewers, and making homes
write loans. They build bridges to resources both in accessible for veterans in need. Since 2017,
the bank and in the community. The BAA program 32 veterans and their families have received
is part of U.S. Bank Access Commitment®, the home improvements.
bank’s long-term approach to help close the wealth
gap. We also launched a new initiative to develop Additionally, more than 1,600 employees
bilingual mortgage loan officers. The eleven- participated in at least one veteran-focused event
person cohort is participating in a yearlong training hosted by our Proud to Serve business resource
and development program to become mortgage group in 2024!
loan officers as part of the U.S. Bank Access®
Home initiative.

17
Our community impact
As a financial services provider, we invest our human and financial resources to help people and the planet.
You can learn more about our progress in our 2023 Corporate Responsibility Report, with a 2024 version
expected later this year. Below are some key advancements we made in 2024.

$111.2M 312,000 $15.3M

in corporate contributions employee volunteer hours pledged to nonprofits
and U.S. Bank foundation through annual Employee
giving to nonprofits Giving Campaign

1.8M Outstanding
rating received by U.S. Bank
$509.1M
individuals received committed to community
from the most recent
financial education development financial
Community Reinvestment
institutions (CDFIs) and
Act (CRA) exam1
other intermediaries2

$4.7B 99% $2.9B

in renewable energy renewable electricity sourced in affordable housing
tax equity and loans for our operations3 tax equity and loans

1. Community Reinvestment Act (CRA) exam by the Office of the Comptroller of the Currency (OCC) is from January 1, 2016, to December 31, 2020; 2. Figure
represents total 2024 loans, equity investments, foundation grants and corporate contributions; 3. As of year-end 2023 (most recent data available).

Receive digital delivery of future Annual Reports

Help us promote environmental stewardship. We’ll donate $1 to Arbor Day for each
shareholder who opts for electronic delivery of future Annual Reports. Each dollar
supports the planting of a new tree. Sign up at usbank.com/electronicAR.

Website references and/or links throughout this report are provided for convenience only, and the content of such websites is not incorporated by reference
into this report.

18 U.S. Bancorp Annual Report 2024 | usbank.com/AR2024

MANAGING COMMITTEE

Souheil S. Badran
Andrew Cecere Gunjan Kedia Senior Executive Vice
Chairman and Chief
President President and Chief
Executive Officer
Operations Officer

Elcio R.T. Barcelos James Gregory G.

L. Chosy Cunningham
Senior Executive
Vice President Senior Executive Senior Executive Vice
and Chief Human Vice President President and Chief
Resources Officer and General Diversity Officer
Counsel

Terrance Revathi N. Dominski

Venkatachari Dilip
R. Dolan Senior Executive
Senior Executive Vice
Vice Chair Vice President, Chief
President and Chief
and Chief Social Responsibility
Information and
Administration Officer, and President,
Technology Officer
Officer U.S. Bank Foundation

Sekou Kaalund Courtney E. Kelso Felicia La Forgia

Senior Executive Senior Executive Vice Senior Executive
Vice President, Head President, Head of Vice President,
of Branch and Small Payments: Consumer Head of the Institutional
Business Banking and Small Business Client Group

Stephen L. Philipson Arijit Roy

Senior Executive Vice Jodi L. Richard Senior Executive
President, Head of Vice Chair and Vice President,
Wealth, Corporate, Chief Risk Officer Head of Consumer
Commercial and and Business
Institutional Banking Banking Products

Mark G. Runkel John C. Stern Dominic

Senior Executive Vice Senior Executive V. Venturo
President, Head of Vice President Senior Executive
Payments: Merchant and Chief Vice President and
and Institutional Financial Officer Chief Digital Officer

19
BOARD OF DIRECTORS

Warner L. Baxter
Andrew Cecere
Gunjan Kedia Retired Executive
Chairman
Chairman and Former
and Chief President,
Chairman, President and
Executive Officer, U.S. Bancorp
Chief Executive Officer,
U.S. Bancorp
Ameren Corporation

Dorothy Bridges Elizabeth Alan B. Colberg

Chief Executive L. Buse Retired President
Officer, Metropolitan Former Chief and Chief
Economic Development Executive Officer, Executive Officer,
Association (Meda) Monitise plc Assurant, Inc.

Aleem Gillani Kimberly

Kimberly N.
Retired Corporate J. Harris
Ellison-Taylor
Executive Vice Retired President
Founder and Chief
President and Chief and Chief Executive
Executive Officer,
Financial Officer, Officer, Puget
KET Solutions, LLC
SunTrust Banks, Inc. Energy, Inc.

Roland A. Hernandez Richard Yusuf I. Mehdi

Founding Principal P. McKenney Executive Vice
and Chief Executive President, Consumer
President and Chief
Officer, Hernandez Chief Marketing
Executive Officer,
Media Ventures (Lead Officer, Microsoft
Unum Group
Independent Director) Corporation

John P. Wiehoff
Loretta E. Reynolds Retired Chairman Scott W. Wine
Founder and Chief and Chief Former Chief
Executive Officer, Executive Officer, Executive Officer,
LEReynolds Group, LLC C.H. Robinson CNH Industrial N.V.
Worldwide, Inc.

20 U.S. Bancorp Annual Report 2024 | usbank.com/AR2024

The following pages discuss in detail the financial results we achieved in 2024.

The following information appears in accordance with the Private Securities Litigation Reform Act of 1995:
This report contains forward-looking statements about • Failures or disruptions in or breaches of U.S. Bancorp’s operational,
U.S. Bancorp. Statements that are not historical or current technology or security systems or infrastructure, or those of third
facts, including statements about beliefs and expectations, parties, including as a result of cybersecurity incidents;
are forward-looking statements and are based on the information • Failures to safeguard personal information;
available to, and assumptions and estimates made by, management • Impacts of pandemics, natural disasters, terrorist activities,
as of the date hereof. These forward-looking statements cover, civil unrest, international hostilities and geopolitical events;
among other things, future economic conditions and the anticipated
• Impacts of supply chain disruptions, rising inflation, slower
future revenue, expenses, financial condition, asset quality,
growth or a recession;
capital and liquidity levels, plans, prospects and operations of
• Failure to execute on strategic or operational plans;
U.S. Bancorp. Forward-looking statements often use words such
as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” • Effects of mergers and acquisitions and related integration;
“projects,” “forecasts,” “intends,” “plans,” “goals,” “believes,” • Effects of critical accounting policies and judgments;
“continue” and other similar expressions or future or conditional • Effects of changes in or interpretations of tax laws and regulations;
verbs such as “will,” “may,” “might,” “should,” “would” and “could.” • Management’s ability to effectively manage credit risk, market risk,
Forward-looking statements involve inherent risks and uncertainties operational risk, compliance risk, strategic risk, interest rate risk,
that could cause actual results to differ materially from those set liquidity risk and reputation risk; and
forth in forward-looking statements, including the following risks • The risks and uncertainties more fully discussed in the section
and uncertainties: entitled “Risk Factors” of this report.
• Deterioration in general business and economic conditions or In addition, factors other than these risks also could adversely
turbulence in domestic or global financial markets, which could affect U.S. Bancorp’s results, and the reader should not consider
adversely affect U.S. Bancorp’s revenues and the values of its these risks to be a complete set of all potential risks or uncertainties.
assets and liabilities, reduce the availability of funding to certain Readers are cautioned not to place undue reliance on any forward-
financial institutions, lead to a tightening of credit, and increase looking statements. Forward-looking statements speak only as
stock price volatility; of the date hereof, and U.S. Bancorp undertakes no obligation
• Turmoil and volatility in the financial services industry, including to update them in light of new information or future events.
failures or rumors of failures of other depository institutions,
which could affect the ability of depository institutions, including 22 Management’s Discussion and Analysis
U.S. Bank National Association, to attract and retain depositors, 22 Overview
and could affect the ability of financial services providers, including
U.S. Bancorp, to borrow or raise capital; 24 Statement of Income Analysis
• Increases in Federal Deposit Insurance Corporation (FDIC) 27 Balance Sheet Analysis
assessments, including due to bank failures; 33 Corporate Risk Profile
• Actions taken by governmental agencies to stabilize the financial
33 Overview
system and the effectiveness of such actions;
• Uncertainty regarding the content, timing and impact of changes 34 Credit Risk Management
to regulatory capital, liquidity and resolution-related requirements 45 Residual Value Risk Management
applicable to large banking organizations in response to adverse 45 Operational Risk Management
developments affecting the banking sector;
46 Compliance Risk Management
• Changes to statutes, regulations, or regulatory policies or
practices, including capital and liquidity requirements, and the 46 Interest Rate Risk Management
enforcement and interpretation of such laws and regulations, and 47 Market Risk Management
U.S. Bancorp’s ability to address or satisfy those requirements and
other requirements or conditions imposed by regulatory entities; 48 Liquidity Risk Management
• Changes in trade policy, including the imposition of tariffs or the 52 Capital Management
impacts of retaliatory tariffs; 54 Business Segment Financial Review
• Changes in interest rates; 57 Non-GAAP Financial Measures
• Increases in unemployment rates;
59 Accounting Changes
• Deterioration in the credit quality of U.S. Bancorp's loan portfolios
or in the value of the collateral securing those loans; 59 Critical Accounting Policies
• Changes in commercial real estate occupancy rates; 61 Controls and Procedures
• Risks related to originating and selling mortgages, including 62 Reports of Management and Independent Accountants
repurchase and indemnity demands, and related to U.S. Bancorp’s
66 Consolidated Financial Statements and Notes
role as a loan servicer;
• Impacts of current, pending or future litigation and 134 Consolidated Daily Average Balance Sheet and
governmental proceedings; Related Yields and Rates
• Increased competition from both banks and non-banks; 135 Supplemental Financial Data
• Effects of climate change and related physical and transition risks; 136 Company Information
• Changes in customer behavior and preferences and the ability to
136 Risk Factors
implement technological changes to respond to customer needs
and meet competitive demands; 152 Managing Committee
• Breaches in data security; 154 Directors

21
Management’s Discussion and Analysis
Overview
U.S. Bancorp and its subsidiaries (the “Company”) compared with December 31, 2023. The increase was
continued to demonstrate financial discipline and a well- primarily due to higher nonperforming commercial and
diversified business model in 2024. Financial results for commercial real estate loans.
2024 included fee revenue growth, prudent expense • Net charge-offs were $2.2 billion in 2024, an increase of
management, stable credit quality and the accretion of $247 million (13.0 percent) compared with 2023. The
common equity tier 1 capital of 70 basis points. During increase reflected higher credit card and commercial
2024, the Company continued to effectively manage its loan net charge-offs, partially offset by the impacts in the
balance sheet while expanding interconnectedness across prior year of charge-offs on acquired loans and charge-
its businesses. offs related to balance sheet repositioning and capital
management actions.
Financial Performance The Company earned $6.3 billion
in 2024, or $3.79 per diluted common share, compared Capital Management At December 31, 2024, all of the
with $5.4 billion, or $3.27 per diluted common share in Company’s regulatory capital ratios exceeded regulatory
2023. “well-capitalized” requirements.

Financial performance for 2024, compared with 2023, • The Company’s common equity tier 1 capital ratio was
included the following: 10.6 percent at December 31, 2024, an increase of 70
basis points from December 31, 2023.
• Net interest income decreased $1.1 billion (6.4 percent)
due to the impact of higher interest rates on deposit mix • The Company resumed share repurchases in the fourth
and pricing, partially offset by modest growth in earning quarter of 2024, as part of a new $5.0 billion share
assets and improved asset mix; repurchase program.

• Noninterest income increased $429 million (4.0 percent) Earnings Summary The Company reported net income
primarily due to higher trust and investment management attributable to U.S. Bancorp of $6.3 billion in 2024, or $3.79
fees, commercial products revenue, payment services per diluted common share, compared with $5.4 billion, or
revenue and mortgage banking revenue; $3.27 per diluted common share, in 2023. Return on
• Noninterest expense decreased $1.7 billion (8.9 average assets and return on average common equity were
percent), reflecting lower merger and integration charges 0.95 percent and 11.7 percent, respectively, in 2024,
and lower FDIC special assessment charges, partially compared with 0.82 percent and 10.8 percent,
offset by higher compensation and employee benefits respectively, in 2023. The results for 2024 included the
expense; impact of $400 million ($300 million net-of-tax) of notable
items, including $155 million of merger and integration
• The provision for credit losses decreased $37 million (1.6
charges associated with the 2022 acquisition of MUFG
percent), reflecting stabilizing economic and credit
Union Bank, N.A. (“MUB”), $136 million of incremental FDIC
trends;
special assessment charges and $109 million of charges
• Average loans decreased $7.4 billion (1.9 percent) related to lease impairments and operational efficiency
driven by decreases in other retail loans, commercial real actions. Combined, these items decreased 2024 diluted
estate loans and commercial loans, partially offset by earnings per common share by $0.19. The results for 2023
increases in credit card loans and residential mortgages; included the impacts of $2.2 billion ($1.6 billion net-of-tax)
and of notable items, including $1.0 billion of merger and
• Average deposits increased $3.9 billion (0.8 percent), integration charges related to the MUB acquisition, $734
driven by increases in average total savings deposits million of FDIC special assessment charges, $243 million of
and time deposits, partially offset by a decrease in provision for credit losses related to balance sheet
average noninterest-bearing deposits. repositioning and capital management actions, $140 million
of securities losses related to balance sheet repositioning,
Credit Quality The Company continued to prudently
a $110 million charitable contribution to support a
manage credit underwriting.
community benefit plan related to the MUB acquisition, and
• The allowance for credit losses was $7.9 billion at a $70 million discrete tax benefit. Combined, these items
December 31, 2024, an increase of $86 million (1.1 decreased 2023 diluted earnings per common share by
percent) compared with December 31, 2023. The $1.04.
increase was primarily driven by period-end loan growth.
• Nonperforming assets were $1.8 billion at December 31,
2024, an increase of $338 million (22.6 percent)

22 U.S. Bancorp 2024 Annual Report

 TABLE 1 Selected Financial Data
Year Ended December 31
(Dollars and Shares in Millions, Except Per Share Data) 2024 2023 2022
Condensed Income Statement
Net interest income $ 16,289 $ 17,396 $ 14,728
Taxable-equivalent adjustment(a) 120 131 118
Net interest income (taxable-equivalent basis)(b) 16,409 17,527 14,846
Noninterest income 11,046 10,617 9,456
Total net revenue 27,455 28,144 24,302
Noninterest expense 17,188 18,873 14,906
Provision for credit losses 2,238 2,275 1,977
Income before taxes 8,029 6,996 7,419
Income taxes and taxable-equivalent adjustment 1,700 1,538 1,581
Net income 6,329 5,458 5,838
Net (income) loss attributable to noncontrolling interests (30) (29) (13)
Net income attributable to U.S. Bancorp $ 6,299 $ 5,429 $ 5,825
Net income applicable to U.S. Bancorp common shareholders $ 5,909 $ 5,051 $ 5,501
Per Common Share
Earnings per share $ 3.79 $ 3.27 $ 3.69
Diluted earnings per share 3.79 3.27 3.69
Dividends declared per share 1.98 1.93 1.88
Book value per share(c) 33.19 31.13 28.71
Market value per share 47.83 43.28 43.61
Average common shares outstanding 1,560 1,543 1,489
Average diluted common shares outstanding 1,561 1,543 1,490
Financial Ratios
Return on average assets .95 % .82 % .98 %
Return on average common equity 11.7 10.8 12.6
Return on tangible common equity(b) 17.2 16.9 17.0
Net interest margin (taxable-equivalent basis)(a) 2.70 2.90 2.72
Efficiency ratio(b) 62.3 66.7 61.4
Net charge-offs as a percent of average loans outstanding .58 .50 .32
Average Balances
Loans $ 373,875 $ 381,275 $ 333,573
Investment securities(d) 166,634 162,757 169,442
Earning assets 606,641 605,199 545,343
Assets 664,014 663,440 592,149
Noninterest-bearing deposits 83,007 107,768 120,394
Deposits 509,515 505,663 462,384
Short-term borrowings 17,201 34,141 25,740
Long-term debt 54,473 44,142 33,114
Total U.S. Bancorp shareholders’ equity 57,206 53,660 50,416
Period End Balances
Loans $ 379,832 $ 373,835 $ 388,213
Investment securities 164,626 153,751 161,650
Assets 678,318 663,491 674,805
Deposits 518,309 512,312 524,976
Long-term debt 58,002 51,480 39,829
Total U.S. Bancorp shareholders’ equity 58,578 55,306 50,766
Asset Quality
Nonperforming assets $ 1,832 $ 1,494 $ 1,016
Allowance for credit losses 7,925 7,839 7,404
Allowance for credit losses as a percentage of period-end loans 2.09 % 2.10 % 1.91 %
Capital Ratios
Common equity tier 1 capital 10.6 % 9.9 % 8.4 %
Tier 1 capital 12.2 11.5 9.8
Total risk-based capital 14.3 13.7 11.9
Leverage 8.3 8.1 7.9
Total leverage exposure 6.8 6.6 6.4
Tangible common equity to tangible assets(b) 5.8 5.3 4.5
Tangible common equity to risk-weighted assets(b) 8.5 7.7 6.0
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the
current expected credit losses methodology(b) 10.5 9.7 8.1
(a) 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.
(b) See Non-GAAP Financial Measures beginning on page 57.
(c) Calculated as U.S. Bancorp common shareholders’ equity divided by common shares outstanding at end of the period.
(d) Excludes unrealized gains and losses on available-for-sale investment securities and any premiums or discounts recorded related to the transfer of investment securities at fair
value from available-for-sale to held-to-maturity.

23
 Total net revenue for 2024 was $689 million (2.4 Statement of Income Analysis
percent) lower than 2023, reflecting a 6.4 percent decrease
in net interest income and a 4.0 percent increase in Net Interest Income Net interest income, on a taxable-
noninterest income. The decrease in net interest income equivalent basis, was $16.4 billion in 2024, compared with
from the prior year was primarily due to the impact of higher $17.5 billion in 2023. The $1.1 billion (6.4 percent)
interest rates on deposit mix and pricing, partially offset by decrease in 2024 compared with 2023 was primarily due to
modest growth in earning assets and improved asset mix. the impact of higher interest rates on deposit mix and
The increase in noninterest income was driven by higher pricing, partially offset by modest growth in earning assets
fee revenue across most categories, partially offset by and improved asset mix. Average earning assets were $1.4
lower service charges and lower other noninterest income. billion (0.2 percent) higher in 2024, compared with 2023,
Noninterest expense in 2024 was $1.7 billion (8.9 reflecting increases in investment securities, interest-
percent) lower than 2023, primarily due to lower merger bearing deposits with banks and other earning assets,
and integration charges and lower FDIC special partially offset by a decrease in loans. The net interest
assessment charges, partially offset by higher margin, on a taxable-equivalent basis, in 2024 was 2.70
compensation and employee benefits expense. percent, compared with 2.90 percent in 2023. The
decrease in the net interest margin in 2024, compared with
Results for 2023 Compared With 2022 For discussion 2023, was primarily due to the impact of higher interest
related to changes in financial condition and results of rates on deposit mix and pricing, partially offset by
operations for 2023 compared with 2022, refer to improved earning asset mix across loans and investment
“Management’s Discussion and Analysis” in the Company’s securities. Refer to the “Interest Rate Risk Management”
Annual Report for the year ended December 31, 2023, section for further information on the sensitivity of the
included as Exhibit 13 to the Company’s Form 10-K filed Company’s net interest income to changes in interest rates.
with the Securities and Exchange Commission ("SEC") on
February 20, 2024.

TABLE 2 Analysis of Net Interest Income(a)

2024 2023
Year Ended December 31 (Dollars in Millions) 2024 2023 2022 v 2023 v 2022

Components of Net Interest Income

Income on earning assets (taxable-equivalent basis) $ 31,789 $ 30,144 $ 18,066 $ 1,645 $ 12,078
Expense on interest-bearing liabilities (taxable-equivalent basis) 15,380 12,617 3,220 2,763 9,397
Net interest income (taxable-equivalent basis)(b) $ 16,409 $ 17,527 $ 14,846 $ (1,118) $ 2,681
Net interest income, as reported $ 16,289 $ 17,396 $ 14,728 $ (1,107) $ 2,668
Average Yields and Rates Paid
Earning assets yield (taxable-equivalent basis) 5.24 % 4.98 % 3.31 % .26 % 1.67 %
Rate paid on interest-bearing liabilities (taxable-equivalent basis) 3.09 2.65 .80 .44 1.85
Gross interest margin (taxable-equivalent basis) 2.15 % 2.33 % 2.51 % (.18)% (.18)%
Net interest margin (taxable-equivalent basis) 2.70 % 2.90 % 2.72 % (.20)% .18 %
Average Balances
Investment securities(c) $ 166,634 $ 162,757 $ 169,442 $ 3,877 $ (6,685)
Loans 373,875 381,275 333,573 (7,400) 47,702
Earning assets 606,641 605,199 545,343 1,442 59,856
Noninterest-bearing deposits 83,007 107,768 120,394 (24,761) (12,626)
Interest-bearing deposits 426,508 397,895 341,990 28,613 55,905
Total deposits 509,515 505,663 462,384 3,852 43,279
Interest-bearing liabilities 498,182 476,178 400,844 22,004 75,334
(a) Interest and rates are presented on a fully taxable-equivalent basis based on a federal income tax rate of 21 percent.
(b) See Non-GAAP Financial Measures beginning on page 57.
(c) Excludes unrealized gains and losses on available-for-sale investment securities and any premiums or discounts recorded related to the transfer of investment securities at fair
value from available-for-sale to held-to-maturity.

24 U.S. Bancorp 2024 Annual Report

 Average total loans were $373.9 billion in 2024, Average total deposits for 2024 were $3.9 billion (0.8
compared with $381.3 billion in 2023. The $7.4 billion (1.9 percent) higher than 2023. Average total savings deposits
percent) decrease was primarily due to lower other retail were $18.3 billion (5.2 percent) higher in 2024, compared
loans, commercial real estate loans and commercial loans, with 2023, driven by increases in balances within Wealth,
partially offset by higher credit card loans and residential Corporate, Commercial and Institutional Banking, along
mortgages. Average other retail loans decreased $6.2 with Consumer and Business Banking. Average time
billion (12.5 percent), driven by lower automobile loans. deposits for 2024 were $10.3 billion (22.1 percent) higher
Average commercial real estate loans decreased $3.0 than 2023, primarily due to increases in Consumer and
billion (5.5 percent), primarily due to loan workout activities Business Banking balances. Changes in time deposits are
and payoffs exceeding a reduced level of new originations. primarily related to those deposits managed as an
Average commercial loans decreased $1.5 billion (1.1 alternative to other funding sources, based largely on
percent), primarily due to decreased demand as corporate relative pricing and liquidity characteristics. Average
customers accessed the capital markets. Average credit noninterest-bearing deposits were $24.8 billion (23.0
card loans increased $2.1 billion (8.0 percent) primarily due percent) lower in 2024, compared with 2023, driven by
to customer account growth and higher spend volume. lower balances within Wealth, Corporate, Commercial and
Average residential mortgages increased $1.1 billion (1.0 Institutional Banking, as well as Consumer and Business
percent), driven by originations. Banking.
Average investment securities in 2024 were $3.9 billion
(2.4 percent) higher than in 2023, primarily due to balance
sheet positioning and liquidity management.

TABLE 3 Net Interest Income — Changes Due to Rate and Volume(a)

2024 v 2023 2023 v 2022
Year Ended December 31 (Dollars in Millions) Volume Yield/Rate Total Volume Yield/Rate Total
Increase (decrease) in
Interest Income
Investment securities $ 109 $ 514 $ 623 $ (136) $ 1,245 $ 1,109
Loans held for sale 5 21 26 (72) 18 (54)
Loans
Commercial (94) 149 55 389 3,933 4,322
Commercial real estate (185) 127 (58) 546 1,183 1,729
Residential mortgages 41 231 272 1,019 511 1,530
Credit card 273 113 386 340 506 846
Other retail (325) 345 20 (424) 731 307
Total loans (290) 965 675 1,870 6,864 8,734
Interest-bearing deposits with banks 117 46 163 313 1,709 2,022
Other earning assets 130 28 158 76 191 267
Total earning assets 71 1,574 1,645 2,051 10,027 12,078
Interest Expense
Interest-bearing deposits
Interest checking (41) 212 171 28 1,029 1,057
Money market savings 1,300 626 1,926 388 4,046 4,434
Savings accounts (26) 101 75 (2) 82 80
Time deposits 375 366 741 192 1,140 1,332
Total interest-bearing deposits 1,608 1,305 2,913 606 6,297 6,903
Short-term borrowings (981) 113 (868) 186 1,223 1,409
Long-term debt 436 282 718 259 826 1,085
Total interest-bearing liabilities 1,063 1,700 2,763 1,051 8,346 9,397
Increase (decrease) in net interest income $ (992) $ (126) $ (1,118) $ 1,000 $ 1,681 $ 2,681
(a) This table shows the components of the change in net interest income by volume and rate on a taxable-equivalent basis based on a federal income tax rate of 21 percent. This
table does not take into account the level of noninterest-bearing funding, nor does it fully reflect changes in the mix of assets and liabilities. The change in interest not solely due to
changes in volume or rates has been allocated on a pro-rata basis to volume and yield/rate.

25
Provision for Credit Losses The provision for credit losses percent) in 2024, compared with 2023, reflecting higher
reflects changes in economic conditions and the size and credit card and commercial loan net charge-offs, partially
credit quality of the entire portfolio of loans. The Company offset by the impacts of charge-offs in the prior year related
maintains an allowance for credit losses considered to acquired loans and balance sheet repositioning and
appropriate by management for expected losses, based on capital management actions.
factors discussed in the “Analysis and Determination of the Refer to “Corporate Risk Profile” for further information
Allowance for Credit Losses” section. on the provision for credit losses, net charge-offs,
The provision for credit losses was $2.2 billion in 2024, nonperforming assets and other factors considered by the
compared with $2.3 billion in 2023. The $37 million (1.6 Company in assessing the credit quality of the loan portfolio
percent) decrease reflects stabilizing economic and credit and establishing the allowance for credit losses.
trends. Net charge-offs increased $247 million (13.0

TABLE 4 Noninterest Income

2024 2023
Year Ended December 31 (Dollars in Millions) 2024 2023 2022 v 2023 v 2022
Card revenue $ 1,679 $ 1,630 $ 1,512 3.0 % 7.8 %
Corporate payment products revenue 773 759 698 1.8 8.7
Merchant processing services 1,714 1,659 1,579 3.3 5.1
Trust and investment management fees 2,660 2,459 2,209 8.2 11.3
Service charges 1,253 1,306 1,298 (4.1) .6
Commercial products revenue 1,523 1,372 1,105 11.0 24.2
Mortgage banking revenue 627 540 527 16.1 2.5
Investment products fees 330 279 235 18.3 18.7
Other 641 758 273 (15.4) *
Total fee revenue 11,200 10,762 9,436 4.1 14.1
Securities gains (losses), net (154) (145) 20 (6.2) *
Total noninterest income $11,046 $10,617 $ 9,456 4.0 % 12.3 %
* Not meaningful

Noninterest Income Noninterest income in 2024 was $11.0 Commercial products revenue increased primarily due to
billion, compared with $10.6 billion in 2023. The $429 higher corporate bond fees. Payment services revenue
million (4.0 percent) increase in 2024 from 2023 reflected increased primarily driven by higher merchant processing
higher trust and investment management fees, commercial services revenue due to business volume growth, along
products revenue, payment services revenue and with increased card revenue due to favorable rates.
mortgage banking revenue, partially offset by lower service Mortgage banking revenue increased primarily due to a
charges and other noninterest income. Trust and gain on the sale of mortgage servicing rights in 2024, along
investment management fees increased primarily due to with the impact of balance sheet repositioning and capital
business growth and favorable market conditions. management actions taken in 2023.

TABLE 5 Noninterest Expense

2024 2023
Year Ended December 31 (Dollars in Millions) 2024 2023 2022 v 2023 v 2022
Compensation and employee benefits $10,554 $10,416 $ 9,157 1.3 % 13.7 %
Net occupancy and equipment 1,246 1,266 1,096 (1.6) 15.5
Professional services 491 560 529 (12.3) 5.9
Marketing and business development 619 726 456 (14.7) 59.2
Technology and communications 2,074 2,049 1,726 1.2 18.7
Other intangibles 569 636 215 (10.5) *
Other 1,480 2,211 1,398 (33.1) 58.2
Total before merger and integration charges 17,033 17,864 14,577 (4.7) 22.5
Merger and integration charges 155 1,009 329 (84.6) *
Total noninterest expense $17,188 $18,873 $14,906 (8.9)% 26.6 %
Efficiency ratio(a) 62.3 % 66.7 % 61.4 %
* Not meaningful
(a) See Non-GAAP Financial Measures beginning on page 57.

26 U.S. Bancorp 2024 Annual Report

Noninterest Expense Noninterest expense in 2024 was Balance Sheet Analysis
$17.2 billion, compared with $18.9 billion in 2023. The $1.7
billion (8.9 percent) decrease in noninterest expense in Average earning assets were $606.6 billion in 2024,
2024, compared to 2023, reflected lower merger and compared with $605.2 billion in 2023. The increase in
integration charges, lower other noninterest expense and average earning assets of $1.4 billion (0.2 percent) was
lower marketing and business development expense, primarily due to increases in investment securities of $3.9
partially offset by higher compensation and employee billion (2.4 percent), interest-bearing deposits with banks of
benefits expense. Other noninterest expense decreased $2.2 billion (4.5 percent) and other earning assets of $2.7
primarily due to lower FDIC special assessment charges in billion (27.5 percent), partially offset by a decrease in loans
2024. Marketing and business development expense of $7.4 billion (1.9 percent).
decreased primarily due to the impact of a charitable For average balance information, refer to the "Net
contribution in 2023 related to the MUB acquisition. Interest Income" section in Statement of Income Analysis
Compensation and employee benefits expense increased and Consolidated Daily Average Balance Sheet and
primarily due to higher commissions, performance-based Related Yields and Rates on page 134.
incentives and medical expenses.
Loans The Company’s loan portfolio was $379.8 billion at
Income Tax Expense The provision for income taxes was December 31, 2024, compared with $373.8 billion at
$1.6 billion (an effective rate of 20.0 percent) in 2024, December 31, 2023, reflecting an increase of $6.0 billion
compared with $1.4 billion (an effective rate of 20.5 (1.6 percent). The increase was driven by higher
percent) in 2023. commercial loans, residential mortgages and credit card
For further information on income taxes, refer to Note 18 loans, partially offset by lower commercial real estate loans
of the Notes to Consolidated Financial Statements. and other retail loans. Table 6 provides a summary of the
loan distribution by product type, while Table 7 provides a
summary of the selected loan maturity distribution by loan
category.

TABLE 6 Loan Portfolio Distribution

2024 2023
Percent Percent
At December 31 (Dollars in Millions) Amount of Total Amount of Total

Commercial
Commercial $ 135,254 35.6 % $ 127,676 34.2 %
Lease financing 4,230 1.1 4,205 1.1
Total commercial 139,484 36.7 131,881 35.3
Commercial Real Estate
Commercial mortgages 38,619 10.2 41,934 11.2
Construction and development 10,240 2.7 11,521 3.1
Total commercial real estate 48,859 12.9 53,455 14.3
Residential Mortgages
Residential mortgages 112,806 29.7 108,605 29.0
Home equity loans, first liens 6,007 1.6 6,925 1.9
Total residential mortgages 118,813 31.3 115,530 30.9
Credit Card 30,350 8.0 28,560 7.6
Other Retail
Retail leasing 4,040 1.0 4,135 1.1
Home equity and second mortgages 13,565 3.6 13,056 3.5
Revolving credit 3,747 1.0 3,668 1.0
Installment 14,373 3.8 13,889 3.7
Automobile 6,601 1.7 9,661 2.6
Total other retail 42,326 11.1 44,409 11.9
Total loans $ 379,832 100.0 % $ 373,835 100.0 %

27
 TABLE 7 Selected Loan Maturity Distribution
Over One Over Five
One Year Through Through Over Fifteen
At December 31, 2024 (Dollars in Millions) or Less Five Years Fifteen Years Years Total
Commercial $ 40,939 $ 84,587 $ 13,578 $ 380 $ 139,484
Commercial real estate 14,961 20,138 5,274 8,486 (a)
48,859
Residential mortgages 215 2,282 6,159 110,157 118,813
Credit card 30,350 — — — 30,350
Other retail 1,836 9,502 13,657 17,331 42,326
Total loans $ 88,301 $ 116,509 $ 38,668 $ 136,354 $ 379,832

Total of loans due after one year with:

Predetermined Floating
Interest Rates Interest Rates
Commercial $ 13,759 $ 84,786
Commercial real estate 11,543 22,355
Residential mortgages 60,578 58,020
Credit card — —
Other retail 27,870 12,620
Total $ 113,750 $ 177,781
(a) Primarily represents construction loans for single-family residences or loans guaranteed by the Small Business Administration.

TABLE 8 Commercial Loans by Industry Group

2024 2023
Percent Percent
At December 31 (Dollars in Millions) Loans of Total Loans of Total

Industry Group
Financial institutions $ 25,468 18.3 % $ 20,016 15.2 %
Real-estate related 17,446 12.5 19,108 14.5
Automotive 11,069 7.9 6,678 5.1
Personal, professional and commercial services 9,776 7.0 10,273 7.8
Healthcare 6,919 5.0 8,240 6.2
Media and entertainment 6,267 4.5 6,265 4.8
Retail 5,181 3.7 4,970 3.8
Capital goods 4,673 3.3 5,315 4.0
Transportation 4,591 3.3 4,467 3.4
Power 3,952 2.8 3,435 2.6
Food and beverage 3,931 2.8 4,053 3.1
Technology 3,693 2.6 3,963 3.0
Energy 3,577 2.6 3,744 2.8
Metals and mining 3,543 2.5 3,332 2.5
Building materials 3,029 2.2 3,008 2.3
State and municipal government 3,023 2.2 3,217 2.4
Education and non-profit 2,921 2.1 3,330 2.5
Agriculture 1,779 1.3 1,778 1.3
Other 18,646 13.4 16,689 12.7
Total $ 139,484 100.0 % $ 131,881 100.0 %

Commercial Commercial loans, including lease financing, in corporate banking. Table 8 provides a summary of
increased $7.6 billion (5.8 percent) at December 31, 2024, commercial loans by industry group.
compared with December 31, 2023, primarily due to growth

28 U.S. Bancorp 2024 Annual Report

 TABLE 9 Commercial Real Estate Loans by Property Type and Geography
2024 2023
Percent Percent
At December 31 (Dollars in Millions) Loans of Total Loans of Total

Property Type
Multi-family $ 17,678 36.2 % $ 17,786 33.3 %
Business owner occupied 10,500 21.5 10,795 20.2
Office 5,601 11.5 6,948 13.0
Industrial 4,791 9.8 5,608 10.5
Residential land and development 3,659 7.5 4,419 8.3
Retail 3,498 7.1 3,806 7.1
Lodging 1,156 2.4 1,661 3.1
Other 1,976 4.0 2,432 4.5
Total $ 48,859 100.0 % $ 53,455 100.0 %
Geography
California $ 17,990 36.8 % $ 20,130 37.7 %
Washington 4,607 9.4 4,245 7.9
Texas 2,366 4.8 2,669 5.0
Florida 1,726 3.5 1,843 3.4
Oregon 1,673 3.4 1,809 3.4
Colorado 1,515 3.1 1,476 2.8
Illinois 1,431 2.9 1,516 2.8
Minnesota 1,313 2.8 1,497 2.8
Wisconsin 1,177 2.4 1,266 2.4
New York 1,160 2.4 1,273 2.4
All other states 13,901 28.5 15,731 29.4
Total $ 48,859 100.0 % $ 53,455 100.0 %

Commercial Real Estate The Company’s portfolio of The Company also finances the operations of real estate
commercial real estate loans, which includes commercial developers and other entities with operations related to real
mortgages and construction and development loans, estate. These loans are not secured directly by real estate
decreased $4.6 billion (8.6 percent) at December 31, 2024, but have similar characteristics to commercial real estate
compared with December 31, 2023. The decrease was loans. These loans were included in the commercial loan
primarily due to loan workout activities and payoffs category and totaled $17.4 billion and $19.1 billion at
exceeding a reduced level of new originations. Table 9 December 31, 2024 and 2023, respectively.
provides a summary of commercial real estate loans by
property type and geographical location.

29
 TABLE 10 Residential Mortgages by Geography
2024 2023
Percent Percent
At December 31 (Dollars in Millions) Loans of Total Loans of Total
California $ 53,682 45.2 % $ 52,584 45.5 %
Washington 6,829 5.8 6,678 5.8
Florida 3,947 3.3 3,767 3.3
Colorado 3,737 3.1 3,881 3.4
Illinois 3,452 2.9 3,630 3.1
Minnesota 3,357 2.9 3,600 3.1
Texas 3,312 2.8 3,287 2.8
New York 3,129 2.6 2,726 2.4
Arizona 3,088 2.6 3,134 2.7
Massachusetts 2,737 2.3 2,680 2.3
All other states 31,543 26.5 29,563 25.6
Total $ 118,813 100.0 % $ 115,530 100.0 %

Residential Mortgages Residential mortgages held in the Other Retail Total other retail loans, which include retail
loan portfolio at December 31, 2024, increased $3.3 billion leasing, home equity and second mortgages and other
(2.8 percent) compared to December 31, 2023, driven by retail loans, decreased $2.1 billion (4.7 percent) at
originations. Residential mortgages originated and placed December 31, 2024, compared with December 31, 2023,
in the Company’s loan portfolio include jumbo mortgages driven by a decrease in automobile loans. Tables 10, 11
and branch-originated first lien home equity loans to and 12 provide a geographic summary of residential
borrowers with high credit quality. mortgages, credit card loans and other retail loans
outstanding, respectively, as of December 31, 2024 and
Credit Card Total credit card loans increased $1.8 billion 2023.
(6.3 percent) at December 31, 2024, compared with
December 31, 2023, primarily driven by customer account
growth and higher spend volume.

TABLE 11 Credit Card Loans by Geography

2024 2023
Percent Percent
At December 31 (Dollars in Millions) Loans of Total Loans of Total
California $ 3,289 10.8 % $ 2,928 10.3 %
Texas 1,819 6.0 1,719 6.0
Illinois 1,557 5.1 1,472 5.2
Florida 1,479 4.9 1,363 4.8
Ohio 1,468 4.8 1,406 4.9
Minnesota 1,371 4.5 1,333 4.7
Wisconsin 1,220 4.0 1,177 4.1
Colorado 1,021 3.4 964 3.3
Missouri 960 3.2 918 3.2
Washington 947 3.1 889 3.1
All other states 15,219 50.2 14,391 50.4
Total $ 30,350 100.0 % $ 28,560 100.0 %

30 U.S. Bancorp 2024 Annual Report

 TABLE 12 Other Retail Loans by Geography
2024 2023
Percent Percent
At December 31 (Dollars in Millions) Loans of Total Loans of Total
California $ 9,179 21.7 % $ 9,506 21.4 %
Texas 2,995 7.1 3,505 7.9
Florida 2,675 6.3 2,729 6.1
Washington 1,746 4.1 1,800 4.1
Minnesota 1,742 4.1 1,943 4.4
Ohio 1,520 3.6 1,752 3.9
Illinois 1,435 3.4 1,704 3.8
Colorado 1,340 3.2 1,440 3.2
New York 1,329 3.1 1,444 3.3
Oregon 1,259 3.0 1,313 3.0
All other states 17,106 40.4 17,273 38.9
Total $ 42,326 100.0 % $ 44,409 100.0 %

The Company generally retains portfolio loans through secondary market, were $2.6 billion at December 31, 2024,
maturity; however, the Company’s intent may change over compared with $2.2 billion at December 31, 2023. The
time based upon various factors such as ongoing asset/ increase in loans held for sale was principally due to a
liability management activities, assessment of product higher level of mortgage loan closings in the fourth quarter
profitability, credit risk, liquidity needs, and capital of 2024, compared with the fourth quarter of 2023. Almost
implications. If the Company’s intent or ability to hold an all of the residential mortgage loans the Company
existing portfolio loan changes, it is transferred to loans originates or purchases for sale follow guidelines that allow
held for sale. the loans to be sold into existing, highly liquid secondary
markets, in particular in government agency transactions
Loans Held for Sale Loans held for sale, consisting
and to government sponsored enterprises (“GSEs”).
primarily of residential mortgages to be sold in the

TABLE 13 Investment Securities

2024 2023
Weighted- Weighted-
Average Weighted- Average Weighted-
Amortized Maturity in Average Amortized Maturity in Average
At December 31 (Dollars in Millions) Cost Fair Value Years Yield(e) Cost Fair Value Years Yield(e)

Held-to-Maturity
U.S. Treasury and agencies $ 1,296 $ 1,275 1.3 2.85 % $ 1,345 $ 1,310 2.3 2.85 %
Mortgage-backed securities(a) 77,094 64,753 8.8 2.19 82,692 72,770 8.8 2.21
Other 244 247 2.2 2.73 8 8 2.8 2.56
Total held-to-maturity $ 78,634 $ 66,275 8.7 2.20 % $ 84,045 $ 74,088 8.7 2.22 %
Available-for-Sale
U.S. Treasury and agencies $ 30,467 $ 28,387 5.1 2.98 % $ 21,768 $ 19,542 5.9 2.19 %
Mortgage-backed securities(a) 44,238 40,638 7.4 3.82 36,895 33,427 6.3 3.09
(a)
Asset-backed securities 7,136 7,165 3.8 5.56 6,713 6,724 2.2 5.33
Obligations of state and political subdivisions(b)(c) 10,690 9,552 11.7 3.72 10,867 9,989 9.9 3.75
Other 249 250 1.5 4.79 24 24 1.7 4.51
Total available-for-sale(d) $ 92,780 $ 85,992 6.8 3.67 % $ 76,267 $ 69,706 6.3 3.12 %
(a) Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future
prepayments.
(b) Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to
maturity if the security is purchased at par or a discount.
(c) Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity
date for securities with a fair value equal to or below par.
(d) Amortized cost excludes portfolio level basis adjustments of $13 million and $335 million at December 31, 2024 and 2023, respectively.
(e) Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent. Yields
on investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at fair
value from available-for-sale to held-to-maturity.

31
Investment Securities The Company uses its investment securities with unrealized losses, and believes it is more
securities portfolio to manage interest rate risk, provide likely than not that it would not be required to sell such
liquidity (including the ability to meet regulatory securities before recovery of their amortized cost.
requirements), generate interest and dividend income, and Refer to Notes 4 and 21 in the Notes to Consolidated
serve as collateral for public deposits and wholesale Financial Statements for further information on investment
funding sources. While the Company intends to hold its securities.
investment securities indefinitely, it may sell available-for-
Deposits Total deposits were $518.3 billion at
sale investment securities in response to structural changes
December 31, 2024, compared with $512.3 billion at
in the balance sheet and related interest rate risk and to
December 31, 2023. The $6.0 billion (1.2 percent) increase
meet liquidity requirements, among other factors.
in total deposits reflected increases in total savings
Investment securities totaled $164.6 billion at
deposits and time deposits, partially offset by a decrease in
December 31, 2024, compared with $153.8 billion at
noninterest-bearing deposits.
December 31, 2023. The $10.9 billion (7.1 percent)
Interest-bearing savings deposits increased $9.3 billion
increase was primarily due to net investment purchases
(2.5 percent) at December 31, 2024, compared with
driven by balance sheet positioning and liquidity
December 31, 2023. The increase was related to higher
management, along with a favorable change in net
money market and savings account deposit balances,
unrealized gains (losses) on available-for-sale investment
partially offset by lower interest checking deposit balances.
securities. Investment securities by type are shown in Table
Money market deposit balances increased $7.4 billion (3.7
13.
percent), primarily due to higher Wealth, Corporate,
The Company’s available-for-sale investment securities
Commercial and Institutional Banking balances. Savings
are carried at fair value with changes in fair value reflected
account balances increased $2.2 billion (5.0 percent),
in other comprehensive income (loss) unless a portion of a
driven by higher Consumer and Business Banking
security’s unrealized loss is related to credit and an
balances. Interest checking balances decreased $265
allowance for credit losses is necessary. At December 31,
million (0.2 percent) primarily due to lower Consumer and
2024, the Company’s net unrealized losses on available-for-
Business Banking balances, partially offset by higher
sale investment securities were $6.8 billion ($5.1 billion net-
Wealth, Corporate, Commercial and Institutional Banking
of-tax), compared with net unrealized losses of $6.9 billion
balances.
($5.2 billion net-of-tax) at December 31, 2023. The
Time deposits at December 31, 2024, increased $2.5
favorable change in net unrealized gains (losses) was
billion (4.8 percent), compared with December 31, 2023,
primarily due to increases in the fair value of U.S. treasury
driven by higher Consumer and Business Banking
securities as a result of changes in interest rates. Gross
balances. Changes in time deposits are primarily related to
unrealized losses on available-for-sale investment
those deposits managed as an alternative to other funding
securities totaled $6.9 billion at December 31, 2024,
sources, based largely on relative pricing and liquidity
compared with $7.1 billion at December 31, 2023. When
characteristics.
evaluating credit losses, the Company considers various
Noninterest-bearing deposits at December 31, 2024,
factors such as the nature of the investment security, the
decreased $5.8 billion (6.5 percent) from December 31,
credit ratings or financial condition of the issuer, the extent
2023. The decrease was primarily driven by lower balances
of the unrealized loss, expected cash flows of the
within Wealth, Corporate, Commercial and Institutional
underlying collateral, the existence of any government or
Banking, as well as Consumer and Business Banking, due
agency guarantees, and market conditions. At
to the impact of higher interest rates.
December 31, 2024, the Company had no plans to sell

32 U.S. Bancorp 2024 Annual Report

 TABLE 14 Deposits
The composition of deposits was as follows:
2024 2023
Percent Percent
At December 31 (Dollars in Millions) Amount of Total Amount of Total
Noninterest-bearing deposits $ 84,158 16.2 % $ 89,989 17.6 %
Interest-bearing deposits
Interest checking 127,188 24.5 127,453 24.9
Money market savings 206,805 39.9 199,378 38.9
Savings accounts 45,389 8.8 43,219 8.4
Total savings deposits 379,382 73.2 370,050 72.2
Domestic time deposits less than $250,000 39,297 7.6 35,700 7.0
Domestic time deposits greater than $250,000 14,552 2.8 15,336 3.0
Foreign time deposits 920 .2 1,237 .2
Total interest-bearing deposits 434,151 83.8 422,323 82.4
Total deposits(a) $ 518,309 100.0 % $ 512,312 100.0 %
(a) Includes $259.9 billion and $260.7 billion of deposits at December 31, 2024 and 2023, respectively, that are not subject to any federal, state or foreign deposit insurance program.

The maturity of domestic time deposits in excess of the insurance limit and those time deposits not subject to any federal, state
or foreign deposit insurance program at December 31, 2024 was as follows:

Domestic
Time
Deposits
Greater Than Foreign Time
(Dollars in Millions) $250,000 Deposits Total
Three months or less $ 6,377 $ 920 $ 7,297
Three months through six months 5,950 — 5,950
Six months through one year 1,770 — 1,770
Thereafter 455 — 455
Total $ 14,552 $ 920 $ 15,472

Borrowings The Company utilizes both short-term and “Liquidity Risk Management” section for discussion of
long-term borrowings as part of its asset/liability liquidity management of the Company.
management and funding strategies. Short-term
borrowings, which include federal funds purchased, Corporate Risk Profile
commercial paper, repurchase agreements, borrowings
secured by high-grade assets and other short-term Overview Managing risks is an essential part of
borrowings, were $15.5 billion at December 31, 2024, successfully operating a financial services company. The
compared with $15.3 billion at December 31, 2023. The Company’s Board of Directors has approved a risk
$239 million (1.6 percent) increase in short-term borrowings management framework which establishes governance and
at December 31, 2024, compared with December 31, 2023, risk management requirements for all risk-taking activities.
was primarily due to increases in repurchase agreement This framework includes Company and business line risk
balances and short-term Federal Home Loan Bank appetite statements which set boundaries for the types and
(“FHLB”) advances, partially offset by lower commercial amount of risk that may be undertaken in pursuing business
paper and other short-term borrowing balances. objectives and initiatives. The Board of Directors, primarily
Long-term debt was $58.0 billion at December 31, 2024, through its Risk Management Committee, oversees
compared with $51.5 billion at December 31, 2023. The performance relative to the risk management framework,
$6.5 billion (12.7 percent) increase was primarily due to risk appetite statements, and other policy requirements.
$6.5 billion of medium-term note and $1.8 billion of bank The Executive Risk Committee (“ERC”), which is chaired
note issuances and a $3.5 billion increase in FHLB by the Chief Risk Officer and includes the Chief Executive
advances, partially offset by $4.6 billion of medium-term Officer and other members of the executive management
note and $1.0 billion of subordinated note repayments. team, oversees execution against the risk management
Refer to Notes 12 and 13 of the Notes to Consolidated framework and risk appetite statements. The ERC focuses
Financial Statements for additional information regarding on current and emerging risks, including strategic and
short-term borrowings and long-term debt, and the reputation risks, by directing timely and comprehensive
actions. Senior operating committees have also been

33
established, each responsible for overseeing a specified and the Risk Management Committee of the Board of
category of risk. Directors. The third line of defense, internal audit, is
The Company’s most prominent risk exposures are responsible for providing the Audit Committee of the Board
credit, interest rate, market, liquidity, operational, of Directors and senior management with independent
compliance, strategic, and reputation. Credit risk is the risk assessment and assurance regarding the effectiveness of
of loss associated with a change in the credit profile or the the Company’s governance, risk management and control
failure of a borrower or counterparty to meet its contractual processes.
obligations. Interest rate risk is the current or prospective Management regularly provides reports to the Risk
risk to earnings and capital, or market valuations, arising Management Committee of the Board of Directors. The Risk
from the impact of changes in interest rates. Market risk is Management Committee discusses with management the
the risk associated with fluctuations in interest rates, foreign Company’s risk management performance and provides a
exchange rates, commodities and credit spreads that may summary of key risks to the entire Board of Directors,
result in changes in the values of financial instruments, covering the status of existing matters, areas of potential
such as trading and available-for-sale investment future concern and specific information on certain types of
securities, mortgage loans held for sale (“MLHFS”), loss events. The Risk Management Committee considers
mortgage servicing rights (“MSRs”) and derivatives that are quarterly reports by management assessing the Company’s
accounted for on a fair value basis. Liquidity risk is the risk performance relative to the risk appetite statements and the
that financial condition or overall safety and soundness is associated risk limits, including:
adversely affected by the Company’s inability, or perceived
inability, to meet its cash flow obligations in a timely and • Macroeconomic environment and other qualitative
complete manner in either normal or stressed conditions. considerations, such as regulatory and compliance
Operational risk is the risk to current or projected financial changes, litigation developments, geopolitical events,
condition and resilience arising from inadequate or failed and technology and cybersecurity;
internal processes or systems, people (including human • Credit measures, including adversely rated and
errors or misconduct), or adverse external events, including nonperforming loans, leveraged transactions, credit
the risk of loss resulting from breaches in data security. concentrations and lending limits;
Operational risk can also include the risk of loss due to • Interest rate and market risk, including market value and
failures by third parties with which the Company does net income simulation, and trading-related Value at Risk
business. Compliance risk is the risk that the Company may (“VaR”);
suffer legal or regulatory sanctions, financial losses, and
• Liquidity risk, including funding projections under various
reputational damage if it fails to adhere to compliance
stressed scenarios;
requirements and the Company’s compliance policies.
Strategic risk is the risk to current or projected financial • Operational and compliance risk, including losses
condition and resilience arising from adverse business stemming from events such as fraud, processing errors,
decisions, poor implementation of business decisions, or control breaches, breaches in data security or adverse
lack of responsiveness to changes in the banking industry business decisions, as well as reporting on technology
and operating environment. Reputation risk is the risk to performance, and various legal and regulatory
current or projected financial condition and resilience compliance measures;
arising from negative public opinion. This risk may impair • Capital ratios and projections, including regulatory
the Company’s competitiveness by affecting its ability to measures and stressed scenarios; and
establish new relationships or services, or continue • Strategic and reputation risk considerations, impacts and
servicing existing relationships. In addition to the risks responses.
identified above, other risk factors exist that may impact the
Company. Refer to “Risk Factors” beginning on page 136 Credit Risk Management The Company’s strategy for
for a detailed discussion of these factors. credit risk management includes well-defined, centralized
The Company’s Board and management-level credit policies, uniform underwriting criteria, and ongoing
governance committees are supported by a “three lines of risk monitoring and review processes for all commercial
defense” model for establishing effective checks and and consumer credit exposures. The strategy also
balances. The first line of defense, the business lines, emphasizes diversification on a geographic, industry and
manages risks in conformity with established limits and customer level, regular credit examinations and
policy requirements. In turn, business line leaders and their management reviews of loans exhibiting deterioration of
risk officers establish programs to ensure conformity with credit quality. The Risk Management Committee oversees
these limits and policy requirements. The second line of the Company’s credit risk management process.
defense, which includes the Chief Risk Officer’s In addition, credit quality ratings, as defined by the
organization as well as policy and oversight activities of Company, are an important part of the Company’s overall
corporate support functions, translates risk appetite and credit risk management and evaluation of its allowance for
strategy into actionable risk limits and policies. The second credit losses. Loans with a pass rating represent those
line of defense monitors first line of defense conformity with loans not classified on the Company’s rating scale for
limits and policies and provides reporting and escalation of problem credits, as minimal credit risk has been identified.
emerging risks and other concerns to senior management Loans with a special mention or classified rating (defined

34 U.S. Bancorp 2024 Annual Report

by internally assessed rating or exception based monitoring lending segment are commercial loans and commercial
credits in consumer lending and small business loans that real estate loans. The three classes within the consumer
are 90 days or more past due and still accruing, nonaccrual lending segment are residential mortgages, credit card
loans and loans in a junior lien position that are current but loans and other retail loans.
are behind a first lien position on nonaccrual), encompass Because business processes and credit risks
all loans held by the Company that it considers to have a associated with unfunded credit commitments are
potential or well-defined weakness that may put full essentially the same as for loans, the Company utilizes
collection of contractual cash flows at risk. The Company’s similar processes to estimate its liability for unfunded credit
internal credit quality ratings for consumer loans are commitments. The Company also engages in non-lending
primarily based on delinquency and nonperforming status. activities that may give rise to credit risk, including
Refer to Notes 1 and 5 in the Notes to Consolidated derivative transactions for balance sheet hedging
Financial Statements for further discussion of the purposes, foreign exchange transactions, deposit
Company’s loan portfolios including internal credit quality overdrafts, commodity contracts and interest rate contracts
ratings. for customers, investments in securities and other financial
The Company categorizes its loan portfolio into two assets, and settlement risk, including Automated Clearing
segments, which is the level at which it develops and House transactions and the processing of credit card
documents a systematic methodology to determine the transactions for merchants. These activities are subject to
allowance for credit losses. The Company’s two loan credit review, analysis and approval processes.
portfolio segments are commercial lending and consumer During 2024, the Company continued to monitor
lending. economic uncertainty related to interest rates, inflationary
The commercial lending segment includes loans and pressures and other economic factors that may affect the
leases made to small business, middle market, large financial strength of corporate and consumer borrowers.
corporate, commercial real estate, financial institution, non- Beginning on January 7, 2025, wildfires generated
profit and public sector customers. Key risk characteristics substantial damage and disruption to the Los Angeles area.
relevant to commercial lending segment loans include the The Company has programs available to work with
industry and geography of the borrower’s business, impacted customers and support the community. The
purpose of the loan, repayment source, borrower’s debt Company continues to monitor the potential impacts on its
capacity and financial flexibility, loan covenants, and nature customers and financial statements as the situation
of pledged collateral, if any, as well as macroeconomic evolves. The Company does not anticipate this impact to
factors such as unemployment rates, gross domestic be material to its financial statements.
product levels, corporate bond spreads and long-term
Credit Diversification The Company manages its credit
interest rates. These risk characteristics, among others, are
risk, in part, through diversification of its loan portfolio which
considered in determining estimates about the likelihood of
is achieved through limit setting by product type criteria,
default by the borrowers and the severity of loss in the
such as industry, geography and identification of credit
event of default. The Company considers these risk
concentrations. As part of its normal business activities, the
characteristics in assigning internal risk ratings to, or
Company offers a broad array of traditional commercial
forecasting losses on, these loans, which are the significant
lending products and specialized products such as asset-
factors in determining the allowance for credit losses for
based lending, commercial lease financing, agricultural
loans in the commercial lending segment.
credit, warehouse mortgage lending, small business
The consumer lending segment represents loans and
lending, commercial real estate lending, health care
leases made to consumer customers, including residential
lending and correspondent banking financing. The
mortgages, credit card loans, and other retail loans such as
Company also offers an array of consumer lending
revolving consumer lines, auto loans and leases and home
products, including residential mortgages, credit card
equity loans and lines. Key risk characteristics relevant to
loans, auto loans, retail leases, home equity loans and
consumer lending segment loans primarily relate to the
lines, revolving credit arrangements and other consumer
borrowers’ capacity and willingness to repay, customer
loans. These consumer lending products are primarily
payment history and credit scores and consider
offered through the branch office network, home mortgage
macroeconomic factors such as unemployment rates,
and loan production offices, mobile and online banking,
consumer bankruptcy filings, household debt levels, real
and indirect distribution channels, such as auto and
disposable income, effect of higher interest rates on
recreational vehicle dealers. The Company monitors and
variable rate or adjustable rate loans, and in some cases,
manages the portfolio diversification by industry, customer
updated loan-to-value (“LTV”) information reflecting current
and geography. The Company has significant loan
market conditions on secured loans. These and other risk
exposure within California given its strategic position in
characteristics are reflected in forecasts of delinquency
those markets and size of the economy. Table 6 provides
levels, bankruptcies and losses which are the primary
information with respect to the overall product
factors in determining the allowance for credit losses for the
diversification and changes in the mix during 2024.
consumer lending segment.
The commercial loan class is diversified among various
The Company further disaggregates its loan portfolio
industries with higher percentages in financial institutions
segments into various classes based on their underlying
and real estate. Table 8 provides a summary of significant
risk characteristics. The two classes within the commercial

35
industry groups of commercial loans outstanding at The following tables provide summary information of
December 31, 2024 and 2023. residential mortgages and home equity and second
The commercial real estate loan class reflects the mortgages by LTV at December 31, 2024:
Company’s focus on serving business owners within its
local network, as well as regional and national investment- Residential Mortgages Interest Percent
(Dollars in Millions) Only Amortizing Total of Total
based real estate owners and developers. Within the
commercial real estate loan class, different property types Loan-to-Value
have varying degrees of credit risk. Table 9 provides a Less than or
summary of the significant property types and geographical equal to 80% $ 13,829 $ 91,554 $ 105,383 88.7 %
locations of commercial real estate loans outstanding at Over 80%
December 31, 2024 and 2023. Commercial real estate through 90% 237 4,907 5,144 4.3
loans are diversified among various property types with Over 90%
higher percentages in multi-family, business owner- through 100% 25 903 928 .8
occupied and office properties. The commercial real estate Over 100% 22 385 407 .3
office sector, which represented 11.5 percent of No LTV available — 6 6 —
commercial real estate loans at December 31, 2024, is a
Loans
driver of stress in this loan class. The Company continued
purchased
to monitor the commercial real estate office portfolio and from GNMA
maintained an allowance to loan coverage ratio of 11 mortgage
percent at December 31, 2024, compared with 10 percent pools(a) — 6,945 6,945 5.9
at December 31, 2023. Office nonperforming loans as a Total $ 14,113 $ 104,700 $ 118,813 100.0 %
percent of total office loans increased to 10.9 percent at (a) Represents loans purchased and loans that could be purchased from
December 31, 2024, compared to 7.6 percent at Government National Mortgage Association (“GNMA”) mortgage pools under
December 31, 2023. delinquent loan repurchase options whose payments are primarily insured by the
Federal Housing Administration or guaranteed by the United States Department
The Company’s consumer lending segment originates of Veterans Affairs.
consumer credit through several channels, including
traditional branch lending, mobile and online banking, Home Equity and Second
Mortgages Percent
indirect lending, alliance partnerships and correspondent (Dollars in Millions) Lines Loans Total of Total
banks. Each distinct underwriting and origination process Loan-to-Value / Combined Loan-to-Value
within consumer lending manages unique credit risk
Less than or equal
characteristics and prices its loan production to 80% $ 10,414 $ 2,453 $ 12,867 94.9 %
commensurate with the differing risk profiles.
Over 80% through
Residential mortgage originations are generally limited 90% 419 110 529 3.9
to prime borrowers and are performed through the
Over 90% through
Company’s branches, loan production offices, mobile and
100% 71 16 87 .6
online services, and a wholesale network of originators. The
Company may retain residential mortgage loans it Over 100% 56 4 60 .4
originates on its balance sheet or sell the loans into the No LTV/CLTV
secondary market while retaining the servicing rights and available 21 1 22 .2
customer relationships. Utilizing the secondary markets Total $ 10,981 $ 2,584 $ 13,565 100.0 %
enables the Company to effectively reduce its credit and
other asset/liability risks. For residential mortgages that are Credit card and other retail loans are diversified across
retained in the Company’s portfolio and for home equity customer segments and geographies. Diversification in the
and second mortgages, credit risk is managed by credit card portfolio is achieved with broad customer
adherence to LTV and borrower credit criteria during the relationship distribution through the Company’s and
underwriting process. financial institution partners’ branches, retail and affinity
The Company estimates updated LTV information on its partners, and digital channels.
outstanding residential mortgages quarterly, based on a Tables 10, 11 and 12 provide a geographical summary
method that combines automated valuation model updates of the residential mortgage, credit card and other retail loan
and relevant home price indices. LTV is the ratio of the portfolios, respectively.
loan’s outstanding principal balance to the current estimate
The following table provides a summary of the Company’s
of property value. For home equity and second mortgages,
credit card loan balances disaggregated based upon
combined loan-to-value (“CLTV”) is the combination of the
updated credit score at December 31, 2024:
first mortgage original principal balance and the second
lien outstanding principal balance, relative to the current Percent
of Total(a)
estimate of property value. Certain loans do not have an
LTV or CLTV, primarily due to lack of availability of relevant Credit score > 660 87 %
automated valuation model and/or home price indices Credit score < 660 13
values, or lack of necessary valuation data on acquired No credit score —
loans.
(a) Credit score distribution excludes loans serviced by others.

36 U.S. Bancorp 2024 Annual Report

 TABLE 15 Delinquent Loan Ratios as a Percent of Ending Loan Balances
At December 31
90 days or more past due 2024 2023

Commercial
Commercial .07 % .09 %
Lease financing — —
Total commercial .07 .09
Commercial Real Estate
Commercial mortgages — —
Construction and development .09 .03
Total commercial real estate .02 .01
Residential Mortgages(a) .17 .12
Credit Card 1.43 1.31
Other Retail
Retail leasing .05 .05
Home equity and second mortgages .25 .26
Other .11 .11
Total other retail .15 .15
Total loans .21 % .19 %

At December 31
90 days or more past due and nonperforming loans 2024 2023
Commercial .55 % .37 %
Commercial real estate 1.70 1.46
Residential mortgages(a) .30 .25
Credit card 1.43 1.31
Other retail .50 .46
Total loans .69 % .57 %
(a) Delinquent loan ratios exclude $2.3 billion and $2.0 billion at December 31, 2024 and 2023, respectively, of loans purchased and loans that could be purchased from GNMA
mortgage pools under delinquent loan repurchase options whose repayments are primarily insured by the Federal Housing Administration or guaranteed by the United States
Department of Veterans Affairs. Including these loans, the ratio of residential mortgages 90 days or more past due and nonperforming to total residential mortgages was 2.28
percent and 2.00 percent at December 31, 2024 and 2023, respectively.

Loan Delinquencies Trends in delinquency ratios are an Accruing loans 90 days or more past due totaled $810
indicator, among other considerations, of credit risk within million at December 31, 2024, compared with $698 million
the Company’s loan portfolios. The entire balance of a loan at December 31, 2023. Accruing loans 90 days or more
account is considered delinquent if the minimum payment past due are not included in nonperforming assets and
contractually required to be made is not received by the continue to accrue interest because they are adequately
date specified on the billing statement. Delinquent loans secured by collateral, are in the process of collection and
purchased and loans that could be purchased from GNMA are reasonably expected to result in repayment or
mortgage pools under delinquent loan repurchase options, restoration to current status, or are managed in
whose repayments are primarily insured by the Federal homogeneous portfolios with specified charge-off
Housing Administration or guaranteed by the United States timeframes adhering to regulatory guidelines. The ratio of
Department of Veterans Affairs, are excluded from accruing loans 90 days or more past due to total loans was
delinquency statistics. In addition, in certain situations, a 0.21 percent at December 31, 2024, compared with 0.19
consumer lending customer’s account may be re-aged to percent at December 31, 2023.
remove it from delinquent status. Generally, the purpose of
re-aging accounts is to assist customers who have recently
overcome temporary financial difficulties and have
demonstrated both the ability and willingness to resume
regular payments. In addition, the Company may re-age the
consumer lending account of a customer who has
experienced longer-term financial difficulties and apply
modified, concessionary terms and conditions to the
account. Commercial lending loans are generally not
subject to re-aging policies.

37
The following table provides summary delinquency The Company continues to work with borrowers who are
information for residential mortgages, credit card and other experiencing financial difficulties to modify their loans.
retail loans included in the consumer lending segment: Many of the Company’s loan modifications are determined
on a case-by-case basis in connection with ongoing loan
As a Percent of
Ending collection processes. The modifications vary within each of
Amount Loan Balances the Company’s loan classes. Commercial lending segment
At December 31 modifications generally include extensions of the maturity
(Dollars in Millions) 2024 2023 2024 2023 date and may be accompanied by an increase or decrease
(a)
Residential Mortgages to the interest rate. The Company may also work with the
30-89 days $ 188 $ 169 .16 % .15 % borrower to make other changes to the loan to mitigate
losses, such as obtaining additional collateral and/or
90 days or more 206 136 .17 .12
guarantees to support the loan.
Nonperforming 152 158 .13 .14 The Company has also implemented certain residential
Total $ 546 $ 463 .46 % .40 % mortgage loan modification programs. The Company
Credit Card modifies residential mortgage loans under Federal Housing
Administration, United States Department of Veterans
30-89 days $ 428 $ 406 1.41 % 1.42 %
Affairs, and its own internal programs. Under these
90 days or more 435 375 1.43 1.31 programs, the Company offers qualifying homeowners the
Nonperforming — — — — opportunity to permanently modify their loan and achieve
Total $ 863 $ 781 2.84 % 2.73 % more affordable monthly payments. These modifications
may include adjustments to interest rates, conversion of
Other Retail
adjustable rates to fixed rates, extensions of maturity dates
Retail Leasing or deferrals of payments, capitalization of accrued interest
30-89 days $ 25 $ 25 .62 % .60 % and/or outstanding advances, or in limited situations, partial
90 days or more 2 2 .05 .05 forgiveness of loan principal. In some instances,
participation in residential mortgage loan modification
Nonperforming 7 8 .17 .19
programs requires the customer to complete a short-term
Total $ 34 $ 35 .84 % .85 % trial period. A permanent loan modification is contingent on
Home Equity and Second the customer successfully completing the trial period
Mortgages arrangement, and the loan documents are not modified
30-89 days $ 61 $ 77 .45 % .59 % until that time.
Credit card and other retail loan modifications are
90 days or more 34 34 .25 .26
generally part of distinct modification programs providing
Nonperforming 121 113 .89 .87 customers modification solutions over a specified time
Total $ 216 $ 224 1.59 % 1.72 % period, generally up to 60 months.
Other(b) The Company also makes short-term modifications, in
limited circumstances, to assist borrowers experiencing
30-89 days $ 143 $ 176 .58 % .65 %
temporary hardships. Short-term consumer lending
90 days or more 28 31 .11 .11 modification programs include payment reductions,
Nonperforming 19 17 .08 .06 deferrals of up to three past due payments, and the ability
Total $ 190 $ 224 .77 % .82 % to return to current status if the borrower makes required
payments. The Company may also make short-term
(a) Excludes $660 million of loans 30-89 days past due and $2.3.billion of loans 90
days or more past due at December 31, 2024, purchased and that could be modifications to commercial lending loans, with the most
purchased from GNMA mortgage pools under delinquent loan repurchase common modification being an extension of the maturity
options that continue to accrue interest, compared with $595 million and $2.0
billion at December 31, 2023, respectively.
date of three months or less. Such extensions generally are
(b) Includes revolving credit, installment and automobile loans. used when the maturity date is imminent and the borrower
is experiencing some level of financial stress, but the
Modified Loans In certain circumstances, the Company
Company believes the borrower will pay all contractual
may modify the terms of a loan to maximize the collection of
amounts owed.
amounts due when a borrower is experiencing financial
difficulties or is expected to experience difficulties in the Nonperforming Assets The level of nonperforming assets
near-term. In most cases the modification is either a represents another indicator of the Company’s risk within
concessionary reduction in interest rate, extension of the the loan portfolio. Nonperforming assets include nonaccrual
maturity date or other concessionary modification of loan loans, modified loans not performing in accordance with
terms that would otherwise not be considered. modified terms and not accruing interest, modified loans
Modified loans accrue interest if the borrower complies that have not met the performance period required to return
with the revised terms and conditions and has to accrual status, other real estate owned (“OREO”) and
demonstrated repayment performance at a level other nonperforming assets owned by the Company.
commensurate with the modified terms over several Interest payments collected from assets on nonaccrual
payment cycles, which is generally six months or greater. status are generally applied against the principal balance
and not recorded as income. However, interest income may

38 U.S. Bancorp 2024 Annual Report

be recognized for interest payments received if the and other real estate was 0.48 percent at December 31,
remaining carrying amount of the loan is believed to be 2024, compared with 0.40 percent at December 31, 2023.
collectible. OREO was $21 million at December 31, 2024,
At December 31, 2024, total nonperforming assets were compared with $26 million at December 31, 2023, and was
$1.8 billion, compared with $1.5 billion at December 31, related to foreclosed properties that previously secured
2023. The $338 million (22.6 percent) increase in loan balances. These balances exclude foreclosed GNMA
nonperforming assets, from December 31, 2023 to loans whose repayments are primarily insured by the
December 31, 2024, was primarily due to higher Federal Housing Administration or guaranteed by the
nonperforming commercial and commercial real estate United States Department of Veterans Affairs.
loans. The ratio of total nonperforming assets to total loans

39
 TABLE 16 Nonperforming Assets(a)
At December 31 (Dollars in Millions) 2024 2023

Commercial
Commercial $ 644 $ 349
Lease financing 26 27
Total commercial 670 376
Commercial Real Estate
Commercial mortgages 789 675
Construction and development 35 102
Total commercial real estate 824 777
(b)
Residential Mortgages 152 158
Credit Card — —
Other Retail
Retail leasing 7 8
Home equity and second mortgages 121 113
Other 19 17
Total other retail 147 138
Total nonperforming loans(1) 1,793 1,449
Other Real Estate(c) 21 26
Other Assets 18 19
Total nonperforming assets $ 1,832 $ 1,494
Accruing loans 90 days or more past due(b) $ 810 $ 698
Period-end loans(2) $ 379,832 $ 373,835
Nonperforming assets to total loans(1)/(2) .47 % .39 %
(c)
Nonperforming assets to total loans plus other real estate .48 % .40 %

Changes in Nonperforming Assets

Residential
Commercial and Mortgages,
Commercial Credit Card and
(Dollars in Millions) Real Estate Other Retail Total

Balance December 31, 2023 $ 1,155 $ 339 $ 1,494

Additions to nonperforming assets
New nonaccrual loans and foreclosed properties 1,557 190 1,747
Advances on loans 32 1 33
Total additions 1,589 191 1,780
Reductions in nonperforming assets
Paydowns, payoffs (516) (49) (565)
Net sales (41) (28) (69)
Return to performing status (112) (87) (199)
Charge-offs(d) (581) (28) (609)
Total reductions (1,250) (192) (1,442)
Net additions to (reductions in) nonperforming assets 339 (1) 338
Balance December 31, 2024 $ 1,494 $ 338 $ 1,832
(a) Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due.
(b) Excludes $2.3 billion and $2.0 billion at December 31, 2024 and 2023, respectively, of loans purchased and loans that could be purchased from GNMA mortgage pools under
delinquent loan repurchase options that are 90 days or more past due that continue to accrue interest, as their repayments are primarily insured by the Federal Housing
Administration or guaranteed by the United States Department of Veterans Affairs.
(c) Foreclosed GNMA loans of $46 million and $47 million at December 31, 2024 and 2023, respectively, continue to accrue interest and are recorded as other assets and excluded
from nonperforming assets because they are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs.
(d) Charge-offs exclude actions for certain card products and loan sales that were not classified as nonperforming at the time the charge-off occurred.

40 U.S. Bancorp 2024 Annual Report

 TABLE 17 Net Charge-offs as a Percent of Average Loans Outstanding
2024 2023 2022
Average Average Average
Year Ended December 31 Loan Net Loan Net Loan Net
(Dollars in Millions) Balance Charge-offs Percent Balance Charge-offs Percent Balance Charge-offs Percent

Commercial
Commercial $ 129,235 $ 523 .40 % $ 130,544 $ 293 .22 % $ 118,967 $ 211 .18 %
Lease financing 4,177 29 .69 4,339 21 .48 4,830 16 .33
Total commercial 133,412 552 .41 134,883 314 .23 123,797 227 .18
Commercial Real Estate
Commercial mortgages 40,513 163 .40 42,894 265 .62 30,890 17 .06
Construction 11,144 2 .02 11,752 (2) (.02) 10,208 20 .20
Total commercial real estate 51,657 165 .32 54,646 263 .48 41,098 37 .09
Residential Mortgages 117,026 (9) (.01) 115,922 109 .09 84,749 (23) (.03)
Credit Card 28,683 1,227 4.28 26,570 849 3.20 23,478 524 2.23
Other Retail
Retail leasing 4,097 21 .51 4,665 6 .13 6,459 3 .05
Home equity and second mortgages 13,181 (1) (.01) 12,829 (2) (.02) 11,051 (7) (.06)
Other 25,819 197 .76 31,760 366 1.15 42,941 302 .70
Total other retail 43,097 217 .50 49,254 370 .75 60,451 298 .49
Total loans $ 373,875 $ 2,152 .58 % $ 381,275 $ 1,905 .50 % $ 333,573 $ 1,063 .32 %

Analysis of Loan Net Charge-offs Total loan net charge- Analysis and Determination of the Allowance for Credit
offs were $2.2 billion in 2024, compared with $1.9 billion in Losses The allowance for credit losses is established for
2023. The $247 million (13.0 percent) increase in total net current expected credit losses on the Company’s loan and
charge-offs in 2024, compared with 2023, reflected higher lease portfolio, including unfunded credit commitments.
credit card and commercial loan net charge-offs in 2024, The allowance considers expected losses for the remaining
partially offset by the impacts in 2023 of charge-offs on lives of the applicable assets, inclusive of expected
acquired loans and charge-offs related to balance sheet recoveries. The allowance for credit losses is increased
repositioning and capital management actions. The ratio of through provisions charged to earnings and reduced by net
total loan net charge-offs to average loans outstanding was charge-offs.
0.58 percent in 2024, compared with 0.50 percent in 2023. Management evaluates the appropriateness of the
Commercial and commercial real estate loan net allowance for credit losses on a quarterly basis. Multiple
charge-offs for 2024 were $717 million (0.39 percent of economic scenarios are considered over a three-year
average loans outstanding), compared with $577 million reasonable and supportable forecast period, which
(0.30 percent of average loans outstanding) in 2023. The includes increasing consideration of historical loss
increase in net charge-offs in 2024, compared with 2023, experience over years two and three. These economic
was driven primarily by select borrowers facing challenges scenarios are constructed with interrelated projections of
from the higher interest rate and inflation environment. multiple economic variables, and loss estimates are
Residential mortgage loan net charge-offs for 2024 produced that consider the historical correlation of those
reflected net recoveries of $9 million, compared with net economic variables with credit losses. After the forecast
charge-offs of $109 million (0.09 percent of average loans period, the Company fully reverts to long-term historical
outstanding) in 2023. Credit card loan net charge-offs in loss experience, adjusted for prepayments and
2024 were $1.2 billion (4.28 percent of average loans characteristics of the current loan and lease portfolio, to
outstanding), compared with $849 million (3.20 percent of estimate losses over the remaining life of the portfolio. The
average loans outstanding) in 2023. Other retail loan net economic scenarios are updated at least quarterly and are
charge-offs for 2024 were $217 million (0.50 percent of designed to provide a range of reasonable estimates, both
average loans outstanding), compared with $370 million better and worse than current expectations. Scenarios are
(0.75 percent of average loans outstanding) in 2023. The weighted based on the Company’s expectation of
decrease in residential mortgage and other retail loan net economic conditions for the foreseeable future and reflect
charge-offs in 2024, compared with 2023, reflects 2023 significant judgment and consideration of economic
charge-offs related to balance sheet repositioning and forecast uncertainty. Final loss estimates also consider
capital management actions. The increase in credit card factors affecting credit losses not reflected in the scenarios,
net charge-offs reflects stabilizing economic and credit due to the unique aspects of current conditions and
conditions. expectations. These factors may include, but are not limited

41
to, changes in borrower behavior or conditions in specific considered PCD. An allowance is established for each
lending segments, loan servicing practices, regulatory population and considers product mix, risk characteristics
guidance, and/or fiscal and monetary policy actions. of the portfolio and delinquency status and refreshed LTV
Because business processes and credit risks ratios when possible. Considerations for PCD loans include
associated with unfunded credit commitments are whether the loan has experienced a charge-off, bankruptcy
essentially the same as for loans, the Company utilizes or significant deterioration since origination. The allowance
similar processes to estimate its liability for unfunded credit established for purchased loans not considered PCD is
commitments, which is included in other liabilities in the recognized through provision expense upon acquisition,
Consolidated Balance Sheet. Both the allowance for loan whereas the allowance established for loans considered
losses and the liability for unfunded credit commitments are PCD at acquisition is offset by an increase in the basis of
included in the Company’s analysis of credit losses and the acquired loans. Any subsequent increases and
reported reserve ratios. decreases in the allowance related to purchased loans,
The allowance recorded for credit losses utilizes regardless of PCD status, are recognized through provision
forward-looking expected loss models to consider a variety expense, with charge-offs charged to the allowance. The
of factors affecting lifetime credit losses. These factors Company had a total net book balance of $2.3 billion of
include, but are not limited to, macroeconomic variables PCD loans, primarily related to the MUB acquisition,
such as unemployment rates, real estate prices, gross included in its loan portfolio at December 31, 2024.
domestic product levels, interest rates, and corporate bond The Company’s methodology for determining the
spreads, as well as loan and borrower characteristics, such appropriate allowance for credit losses also considers the
as internal risk ratings on commercial loans and consumer imprecision inherent in the methodologies used and
credit scores, delinquency status, collateral type and allocated to the various loan portfolios. As a result, amounts
available valuation information, consideration of end-of-term determined under the methodologies described above are
losses on lease residuals, and the remaining term of the adjusted by management to consider the potential impact
loan, adjusted for expected prepayments. For each loan of other qualitative factors not captured in quantitative
portfolio, including those loans modified under various loan model adjustments which include, but are not limited to, the
modification programs, model estimates are adjusted as following: model imprecision, imprecision in economic
necessary to consider any relevant changes in portfolio scenario assumptions, and emerging risks related to either
composition, lending policies, underwriting standards, risk changes in the economic environment that are affecting
management practices, economic conditions or other specific portfolios, or changes in portfolio concentrations
factors that may affect the accuracy of the model. Expected over time that may affect model performance. The
credit loss estimates also include consideration of consideration of these items results in adjustments to
expected cash recoveries on loans previously charged-off allowance amounts included in the Company’s allowance
or expected recoveries on collateral-dependent loans for credit losses for each loan portfolio. Some factors
where recovery is expected through sale of the collateral at considered in 2024 that required a higher level of
fair value less selling costs. Where loans do not exhibit qualitative judgment included consideration of factors
similar risk characteristics, an individual analysis is affecting commercial real estate office property values, and
performed to consider expected credit losses. the effects of persisting inflationary pressures and
For loans and leases that do not share similar risk continued elevated interest rates across commercial and
characteristics with a pool of loans, the Company consumer lending portfolios.
establishes individually assessed reserves. Reserves for The results of the analysis are evaluated quarterly to
individual commercial nonperforming loans greater than $5 confirm the estimates are appropriate for each loan
million in the commercial lending segment are analyzed portfolio. Table 19 shows the amount of the allowance for
utilizing expected cash flows discounted using the original credit losses by loan class and underlying portfolio
effective interest rate, the observable market price of the category.
loan, or the fair value of the collateral, less selling costs, for Although the Company determined the amount of each
collateral-dependent loans as appropriate. element of the allowance separately and considers this
When evaluating the appropriateness of the allowance process to be an important credit management tool, the
for credit losses for any loans and lines in a junior lien entire allowance for credit losses is available for the entire
position, the Company considers the delinquency and loan portfolio. The actual amount of losses can vary
modification status of the first lien, based on either significantly from the estimated amounts.
servicing data for the first lien accounts serviced by the At December 31, 2024, the allowance for credit losses
Company or the status of first lien mortgage accounts was $7.9 billion, compared with an allowance of $7.8 billion
reported on customer credit bureau files when the first lien at December 31, 2023. The increase in the allowance for
is not serviced by the Company. This information is credit losses of $86 million (1.1 percent) at December 31,
considered within the overall assessment of economic 2024, compared with December 31, 2023, was primarily
conditions, problem loans, recent loss experience and driven by loan portfolio growth.
other factors in determining the allowance for credit losses. The ratio of the allowance for credit losses to period-end
When a loan portfolio is purchased, the acquired loans loans was 2.09 percent at December 31, 2024, compared
are divided into those considered purchased with more with 2.10 percent at December 31, 2023. The ratio of the
than insignificant credit deterioration (“PCD”) and those not allowance for credit losses to nonperforming loans was 442

42 U.S. Bancorp 2024 Annual Report

percent at December 31, 2024, compared with 541 percent The following table summarizes the baseline forecast for
at December 31, 2023. The ratio of the allowance for credit key economic variables the Company used in its estimate
losses to annual loan net charge-offs at December 31, of the allowance for credit losses at December 31, 2024
2024, was 368 percent, compared with 411 percent at and 2023:
December 31, 2023.
December 31, December 31,
The allowance for credit losses related to commercial 2024 2023
lending segment loans decreased $56 million during the United States unemployment rate
year ended December 31, 2024, reflecting improved credit for the three months ending(a)
quality and charge-offs of problem loans, partially offset by December 31, 2024 4.2 % 4.0 %
loan growth.
June 30, 2025 4.4 4.1
The allowance for credit losses related to consumer
lending segment loans increased $142 million during the December 31, 2025 4.3 4.0
year ended December 31, 2024, due to credit card portfolio United States real gross domestic
growth and stabilizing performance, partially offset by product for the three months
favorability in residential real estate secured portfolios ending(b)
related to strength in home values. December 31, 2024 2.3 % 1.3 %
Economic conditions considered in estimating the June 30, 2025 1.9 1.6
allowance for credit losses at December 31, 2024 included
December 31, 2025 1.7 2.0
changes in projected gross domestic product and
(a) Reflects quarterly average of forecasted reported United States unemployment
unemployment levels. These factors were evaluated
rate.
through a combination of quantitative calculations using (b) Reflects year-over-year growth rates.
multiple economic scenarios and additional qualitative
assessments that considered the degree of economic
uncertainty in the current environment. The projected
unemployment rates for 2025 considered in the estimate
ranged from 3.1 percent to 8.8 percent.

43
 TABLE 18 Summary of Allowance for Credit Losses
(Dollars in Millions) 2024 2023 2022
Balance at beginning of year $ 7,839 $ 7,404 $ 6,155
Change in accounting principle(a) — (62) —
Allowance for acquired credit losses(b) — 127 336
Charge-Offs
Commercial
Commercial 615 357 294
Lease financing 37 32 25
Total commercial 652 389 319
Commercial real estate
Commercial mortgages 218 278 28
Construction and development 11 3 26
Total commercial real estate 229 281 54
Residential mortgages 13 129 13
Credit card 1,406 1,014 696
Other retail
Retail leasing 35 18 18
Home equity and second mortgages 9 12 9
Other 269 448 391
Total other retail 313 478 418
Total charge-offs(c) 2,613 2,291 1,500
Recoveries
Commercial
Commercial 92 64 83
Lease financing 8 11 9
Total commercial 100 75 92
Commercial real estate
Commercial mortgages 55 13 11
Construction and development 9 5 6
Total commercial real estate 64 18 17
Residential mortgages 22 20 36
Credit card 179 165 172
Other retail
Retail leasing 14 12 15
Home equity and second mortgages 10 14 16
Other 72 82 89
Total other retail 96 108 120
Total recoveries 461 386 437
Net Charge-Offs
Commercial
Commercial 523 293 211
Lease financing 29 21 16
Total commercial 552 314 227
Commercial real estate
Commercial mortgages 163 265 17
Construction and development 2 (2) 20
Total commercial real estate 165 263 37
Residential mortgages (9) 109 (23)
Credit card 1,227 849 524
Other retail
Retail leasing 21 6 3
Home equity and second mortgages (1) (2) (7)
Other 197 366 302
Total other retail 217 370 298
Total net charge-offs 2,152 1,905 1,063
Provision for credit losses(d) 2,238 2,275 1,977
Other changes — — (1)
Balance at end of year $ 7,925 $ 7,839 $ 7,404
Components
Allowance for loan losses $ 7,583 $ 7,379 $ 6,936
Liability for unfunded credit commitments 342 460 468
Total allowance for credit losses(1) $ 7,925 $ 7,839 $ 7,404
Period-end loans(2) $ 379,832 $ 373,835 $ 388,213
Nonperforming loans(3) 1,793 1,449 972
Allowance for Credit Losses as a Percentage of
Period-end loans(1)/(2) 2.09 % 2.10 % 1.91 %
Nonperforming loans(1)/(3) 442 541 762
Nonperforming and accruing loans 90 days or more past due 304 365 506
Nonperforming assets 433 525 729
Net charge-offs 368 411 697
(a) Effective January 1, 2023, the Company adopted accounting guidance which removed the separate recognition and measurement of troubled debt restructurings.
(b) Allowance for purchased credit deteriorated and charged-off loans acquired from MUB.
(c) 2023 includes $91 million of charge-offs related to uncollectible amounts on acquired loans, as well as $309 million of charge-offs related to balance sheet repositioning and capital
management actions. 2022 includes $179 million of charge-offs related to uncollectible amounts on acquired loans, as well as $189 million of charge-offs related to balance sheet
repositioning and capital management actions.
(d) 2023 includes provision for credit losses of $243 million related to balance sheet repositioning and capital management actions. 2022 includes provision for credit losses of $662
million related to the acquisition of MUB and $129 million related to balance sheet repositioning and capital management actions.

44 U.S. Bancorp 2024 Annual Report

 TABLE 19 Allocation of the Allowance for Credit Losses

Allowance as a Percent of
Allowance Amount Loans
At December 31 (Dollars in Millions) 2024 2023 2024 2023

Commercial
Commercial $ 2,090 $ 2,038 1.55 % 1.60 %
Lease financing 85 81 2.01 1.91
Total commercial 2,175 2,119 1.56 1.61
Commercial Real Estate
Commercial mortgages 1,016 1,068 2.63 2.55
Construction and development 492 552 4.80 4.79
Total commercial real estate 1,508 1,620 3.09 3.03
Residential Mortgages 783 827 .66 .72
Credit Card 2,640 2,403 8.70 8.41
Other Retail
Retail leasing 93 95 2.30 2.30
Home equity and second mortgages 255 321 1.88 2.46
Other 471 454 1.91 1.67
Total other retail 819 870 1.93 1.96
Total allowance $ 7,925 $ 7,839 2.09 % 2.10 %

Residual Value Risk Management The Company Operational Risk Management The Company operates in
manages its risk to changes in the residual value of leased many different businesses in diverse markets and relies on
vehicles, office and business equipment, and other assets the ability of its employees and systems to process a high
through disciplined residual valuation at the inception of a number of transactions. Operational risk is inherent in all
lease, diversification of its leased assets, regular residual business activities, and the management of this risk is
asset valuation reviews and monitoring of residual value important to the achievement of the Company’s objectives.
gains or losses upon the disposition of assets. Lease Business lines have direct and primary responsibility and
originations are subject to the same well-defined accountability for identifying, controlling, and monitoring
underwriting standards referred to in the “Credit Risk operational risks embedded in their business activities,
Management” section, which includes an evaluation of the including those additional or increased risks created by
residual value risk. Retail lease residual value risk is economic and financial disruptions.
mitigated further by effective end-of-term marketing of off- The Company maintains a system of controls with the
lease vehicles. objective of providing proper transaction authorization and
Included in the retail leasing portfolio was approximately execution, proper system operations, proper oversight of
$3.1 billion of retail leasing residuals at December 31, third parties with whom it does business, safeguarding of
2024, compared with $3.4 billion at December 31, 2023. assets from misuse or theft, and ensuring the reliability and
The Company monitors concentrations of leases by security of financial and other data. The Company also
manufacturer and vehicle type. As of December 31, 2024, maintains a cybersecurity risk program which provides
vehicle lease residuals related to sport utility vehicles were centralized planning and management of related and
54.1 percent of the portfolio, while auto and truck classes interdependent work with a focus on risks from
represented approximately 21.2 percent and 14.6 percent cybersecurity threats. The Company's cybersecurity risk
of the portfolio, respectively. At year-end 2024, the program is integrated into the Company's overall business
individual vehicle model with the largest residual value and operational strategies and requires that the Company
outstanding represented 23.7 percent of the aggregate allocate appropriate resources to maintain the program.
residual value of all vehicles in the portfolio. At Refer to “Item 1C. Cybersecurity” in the Company’s Annual
December 31, 2024 and 2023, the weighted-average Report on Form 10-K for the year ended December 31,
origination term of the portfolio was 41 months. At 2024, for further discussion on the Company's
December 31, 2024, the commercial leasing portfolio had cybersecurity risk program.
$484 million of residuals, compared with $491 million at Business continuation and disaster recovery planning is
December 31, 2023. At year-end 2024, lease residuals also critical to effectively managing operational risks. Each
related to trucks and other transportation equipment business unit of the Company is required to develop,
represented 39.4 percent of the total residual portfolio, maintain and test these plans at least annually to ensure
while business and office equipment represented 27.4 that recovery activities, if needed, can support mission
percent. critical functions, including technology, networks and data

45
centers supporting customer applications and business across interest rate scenarios and will change both with the
operations. absolute level of rates as well as the assumed interest rate
While the Company strives to design processes to shock. Deposit pricing changes, commonly referred to as
minimize operational risks, there is no absolute assurance the deposit beta, represents the amount by which the
that business disruption or operational losses would not Company’s interest-bearing deposit rates have or will
occur from an external event or internal control breakdown. change given a change in short-term market rates. Base
On an ongoing basis, management makes process case and net interest income sensitivities are reviewed
changes and investments to enhance its systems of internal monthly by the ALCO and are used to guide asset/liability
controls and business continuity and disaster recovery management strategies.
plans. The Company also manages interest rate sensitivity by
utilizing market value of equity modeling, which measures
Compliance Risk Management The Company may suffer
the degree to which the market values of the Company’s
legal or regulatory sanctions, material financial loss, or
assets and liabilities and off-balance sheet instruments will
damage to its reputation if it fails to comply with laws,
change given a change in interest rates. Management
regulations, rules, standards of good practice, and codes
measures the impact of changes in market values due to
of conduct, including those related to compliance with
interest rates under a number of scenarios, including
Bank Secrecy Act/anti-money laundering requirements,
immediate and sustained parallel shifts, and flattening or
sanctions compliance requirements as administered by the
steepening of the yield curve. The Company manages its
Office of Foreign Assets Control, consumer protection and
interest rate risk position by holding assets with desired
other requirements. The Company has controls and
interest rate risk characteristics on its balance sheet,
processes in place for the assessment, identification,
executing certain pricing strategies for loans and deposits
monitoring, management and reporting of compliance risks
and deploying investment portfolio, funding and derivative
and issues, including those created or increased by
strategies.
economic and financial disruptions. Refer to “Supervision
Table 20 summarizes the projected impact to net
and Regulation” in the Company’s Annual Report on Form
interest income over the next 12 months of various potential
10-K for the year ended December 31, 2024, for further
interest rate changes. The sensitivity of the projected
discussion of the regulatory framework applicable to bank
impact to net interest income over the next 12 months is
holding companies and their subsidiaries.
dependent on balance sheet growth, product mix,
Interest Rate Risk Management In the banking industry, customer behavior, deposit pricing and funding decisions.
changes in interest rates are a significant risk that can From December 31, 2023 to December 31, 2024, interest
impact earnings as well as the safety and soundness of an rate sensitivity to higher rates decreased, primarily due to
entity. The Company manages its exposure to changes in deposit migration into higher yielding products. As of
interest rates through asset and liability management December 31, 2024, the Company continues to be asset
activities within guidelines established by its Asset Liability sensitive to a parallel upward move in interest rates with
Management Committee (“ALCO”) and approved by the most of that impact coming from the long end of the yield
Board of Directors. The ALCO has the responsibility for curve. Net interest income simulation incorporates rate-
approving and overseeing compliance with the ALCO sensitive deposit behavior that could result in changes in
management policies, including interest rate risk exposure. both projected deposit balances and mix under the various
One way the Company measures and analyzes its interest interest rate scenarios. Higher rate scenarios result in
rate risk is through analysis of net interest income disintermediation of bank deposits and a mix shift into
sensitivities across a range of scenarios. higher yielding deposits. Conversely, in lower rate
Net interest income sensitivity analysis includes scenarios, the analysis assumes that deposits will shift into
evaluating all of the Company’s assets and liabilities and lower yielding products. While the Company utilizes models
off-balance sheet instruments, inclusive of new business and assumptions based on historical information and
activity, under various interest rate scenarios that differ in expected behaviors, actual outcomes could vary
the direction, amount and speed of change over time, as significantly. For larger interest rate shock scenarios,
well as the overall shape of the yield curve. The balance mortgage assets and deposits are expected to behave in a
sheet includes assumptions regarding loan and deposit non-linear manner resulting in varying impacts to net
volumes and pricing which are based on quantitative interest income in those scenarios.
analysis, historical trends and management outlook and
strategies. Deposit balances, mix and pricing are dynamic

TABLE 20 Sensitivity of Net Interest Income

December 31, 2024 December 31, 2023
Down 50 bps Up 50 bps Down 200 bps Up 200 bps Down 50 bps Up 50 bps Down 200 bps Up 200 bps
Immediate Immediate Immediate Immediate Immediate Immediate Immediate Immediate
Net interest income .25 % .17 % .01 % 1.05 % (.19)% .71 % (1.05)% 2.28 %

46 U.S. Bancorp 2024 Annual Report

Use of Derivatives to Manage Interest Rate and Other probability of counterparty default. The Company manages
Risks To manage the sensitivity of earnings and capital to the credit risk of its derivative positions by diversifying its
interest rate, prepayment, credit, price and foreign positions among various counterparties, by entering into
currency fluctuations (asset and liability management master netting arrangements, and, where possible, by
positions), the Company enters into derivative transactions. requiring collateral arrangements. The Company may also
The Company uses derivatives for asset and liability transfer counterparty credit risk related to interest rate
management purposes primarily in the following ways: swaps to third parties through the use of risk participation
• To convert fixed-rate debt and available-for-sale agreements. In addition, certain interest rate swaps,
investment securities from fixed-rate payments to interest rate forwards and credit contracts are required to
floating-rate payments; be centrally cleared through clearinghouses to further
mitigate counterparty credit risk. The Company also
• To convert floating-rate loans and debt from floating-rate
mitigates the credit risk of its derivative positions, as well as
payments to fixed-rate payments;
the credit risk on loans or lending portfolios, through the
• To mitigate changes in value of the Company’s unfunded use of credit contracts.
mortgage loan commitments, funded MLHFS and MSRs; For additional information on derivatives and hedging
• To mitigate remeasurement volatility of foreign currency activities, refer to Notes 19 and 20 in the Notes to
denominated balances; and Consolidated Financial Statements.
• To mitigate the volatility of the Company’s net investment Market Risk Management In addition to interest rate risk,
in foreign operations driven by fluctuations in foreign the Company is exposed to other forms of market risk,
currency exchange rates. principally related to trading activities which support
In addition, the Company enters into interest rate, customers’ strategies to manage their own foreign
foreign exchange and commodity derivative contracts to currency, interest rate risk, commodities risk and funding
support the business requirements of its customers activities. For purposes of its internal capital adequacy
(customer-related positions). The Company minimizes the assessment process, the Company considers risk arising
market, funding and liquidity risks of customer-related from its trading activities, as well as the remeasurement
positions by either entering into similar offsetting positions volatility of foreign currency denominated balances
with broker-dealers, or on a portfolio basis by entering into included on its Consolidated Balance Sheet (collectively,
other derivative or non-derivative financial instruments that “Covered Positions”), employing methodologies consistent
partially or fully offset the exposure from these customer- with the requirements of regulatory rules for market risk.
related positions. The Company may enter into derivative The Company’s Market Risk Committee (“MRC”), within the
contracts that are either exchange-traded, centrally cleared framework of the ALCO, oversees market risk management.
through clearinghouses or over-the-counter. The Company The MRC monitors and reviews the Company’s Covered
does not utilize derivatives for speculative purposes. The Positions and establishes policies for market risk
Company does not designate all of the derivatives that it management, including exposure limits for each portfolio.
enters into for risk management purposes as accounting The Company uses a VaR approach to measure general
hedges because of the inefficiency of applying the market risk. Theoretically, VaR represents the statistical risk
accounting requirements and may instead elect fair value of loss the Company has to adverse market movements
accounting for the related hedged items. In particular, the over a one-day time horizon. The Company uses the
Company enters into interest rate swaps, swaptions, historical simulation method to calculate VaR for its
forward commitments to buy to-be-announced securities Covered Positions measured at the ninety-ninth percentile
(“TBAs”), U.S. Treasury and Eurodollar futures and options using a one-year look-back period for distributions derived
on U.S. Treasury futures to mitigate fluctuations in the value from past market data. The market factors used in the
of its MSRs, but does not designate those derivatives as calculations include those pertinent to market risks inherent
accounting hedges. Refer to Note 9 of the Notes to in the underlying trading portfolios, principally those that
Consolidated Financial Statements for additional affect the Company’s corporate bond trading business,
information regarding MSRs, including management of the foreign currency transaction business, client derivatives
changes in fair value. business, loan trading business and municipal securities
Additionally, the Company uses forward commitments to business, as well as those inherent in the Company’s
sell TBAs and other commitments to sell residential foreign denominated balances and the derivatives used to
mortgage loans at specified prices to economically hedge mitigate the related measurement volatility. On average, the
the interest rate risk in its residential mortgage loan Company expects the one-day VaR to be exceeded by
production activities. The forward commitments to sell and actual losses two to three times per year related to these
the unfunded mortgage loan commitments on loans positions. The Company monitors the accuracy of internal
intended to be sold are considered derivatives under the VaR models and modeling processes by back-testing
accounting guidance related to accounting for derivative model performance, regularly updating the historical data
instruments and hedging activities. The Company has used by the VaR models and regular model validations to
elected the fair value option for the MLHFS. assess the accuracy of the models’ input, processing, and
Derivatives are subject to credit risk associated with reporting components. All models are required to be
counterparties to the contracts. Credit risk associated with independently reviewed and approved prior to being
derivatives is measured by the Company based on the placed in use. If the Company were to experience market

47
losses in excess of the estimated VaR more often than assets and hedges. A one-year look-back period is used to
expected, the VaR models and associated assumptions obtain past market data for the models.
would be analyzed and adjusted.
The average, high and low VaR amounts for the residential
The average, high, low and period-end one-day VaR MLHFS and related hedges and the MSRs and related
amounts for the Company’s Covered Positions were as hedges were as follows:
follows:
Year Ended December 31
(Dollars in Millions) 2024 2023
Year Ended December 31
(Dollars in Millions) 2024 2023 Residential Mortgage Loans Held For
Average Sale and Related Hedges
$ 3 $ 4
High Average $ 2 $ 1
4 7
Low High 3 2
2 2
Period-end Low 1 —
2 3
Mortgage Servicing Rights and Related
The Company did not experience any actual losses for Hedges
its combined Covered Positions that exceeded VaR during Average $ 2 $ 7
the years ended December 31, 2024 and 2023. The High 3 12
Company stress tests its market risk measurements to
Low 1 2
provide management with perspectives on market events
that may not be captured by its VaR models, including
Liquidity Risk Management The Company’s liquidity risk
worst case historical market movement combinations that
management process is designed to identify, measure, and
have not necessarily occurred on the same date.
manage the Company’s funding and liquidity risk to meet
The Company calculates Stressed VaR using the same
its daily funding needs and to address expected and
underlying methodology and model as VaR, except that a
unexpected changes in its funding requirements. The
historical continuous one-year look-back period is utilized
Company engages in various activities to manage its
that reflects a period of significant financial stress
liquidity risk. These activities include diversifying its funding
appropriate to the Company’s Covered Positions. The
sources, stress testing, and holding readily-marketable
period selected by the Company includes the significant
assets which can be used as a source of liquidity if
market volatility of the last four months of 2008.
needed. In addition, the Company’s profitable operations,
The average, high, low and period-end one-day Stressed sound credit quality and strong credit ratings and capital
VaR amounts for the Company’s Covered Positions were as position have enabled it to develop a large and reliable
follows: base of core deposit funding within its market areas and in
domestic and global capital markets.
Year Ended December 31 The Company’s Board of Directors approves the
(Dollars in Millions) 2024 2023
Company’s liquidity policy. The Risk Management
Average $ 10 $ 10 Committee of the Company’s Board of Directors oversees
High 16 16 the Company’s liquidity risk management process and
Low 7 6 approves a contingency funding plan. The ALCO reviews
the Company’s liquidity policy and limits, and regularly
Period-end 11 8
assesses the Company’s ability to meet funding
requirements arising from adverse company-specific or
Valuations of positions in client derivatives and foreign
market events.
currency activities are based on discounted cash flow or
The Company’s liquidity policy requires it to maintain
other valuation techniques using market-based
diversified wholesale funding sources to avoid maturity,
assumptions. These valuations are compared to third-party
entity and market concentrations. The Company operates a
quotes or other market prices to determine if there are
Cayman Islands branch for issuing Eurodollar time
significant variances. Significant variances are approved by
deposits. In addition, the Company has relationships with
senior management in the Company’s corporate functions.
dealers to issue national market retail and institutional
Valuation of positions in the corporate bond trading, loan
savings certificates and short-term and medium-term notes.
trading, asset-backed securities and municipal securities
The Company also maintains a significant correspondent
businesses are based on trader marks. These trader marks
banking network and relationships. Accordingly, the
are evaluated against third-party prices, with significant
Company has access to national federal funds, funding
variances approved by senior management in the
through repurchase agreements and sources of stable
Company’s corporate functions.
certificates of deposit and commercial paper.
The Company also measures the market risk of its
The Company regularly projects its funding needs under
hedging activities related to residential MLHFS and MSRs
various stress scenarios and maintains a contingency
using the historical simulation method. The VaRs are
funding plan consistent with the Company’s access to
measured at the ninety-ninth percentile and employ factors
diversified sources of contingent funding. The Company
pertinent to the market risks inherent in the valuation of the
maintains a substantial level of total available liquidity in the

48 U.S. Bancorp 2024 Annual Report

form of on-balance sheet and off-balance sheet funding The Company’s diversified deposit base provides a
sources. These liquidity sources include cash at the sizeable source of relatively stable and low-cost funding,
Federal Reserve Bank and certain European central banks, while reducing the Company’s reliance on the wholesale
unencumbered liquid assets, and capacity to borrow from markets. Total deposits were $518.3 billion at
the FHLB and at the Federal Reserve Bank’s Discount December 31, 2024, compared with $512.3 billion at
Window. Unencumbered liquid assets in the Company’s December 31, 2023. Average noninterest-bearing deposit
investment securities portfolio provide asset liquidity balances in 2024 decreased 23 percent compared with
through the Company’s ability to sell the securities or 2023, reflecting the shift of noninterest-bearing balances
pledge and borrow against them. Refer to Note 4 of the into interest-bearing deposit products resulting from the
Notes to Consolidated Financial Statements and “Balance higher interest rate environment. Average total deposits in
Sheet Analysis” for further information on investment 2024 and 2023 funded approximately 77 percent and 76
securities maturities and trends. Asset liquidity is further percent of the Company’s total assets for these same
enhanced by the Company’s practice of pledging loans to periods, respectively. Refer to Note 11 of the Notes to
access secured borrowing facilities through the FHLB and Consolidated Financial Statements and “Balance Sheet
Federal Reserve Bank. Analysis” for further information on the maturities, terms and
trends of the Company’s deposits.
The following table summarizes the Company's total
Additional funding is provided by long-term debt and
available liquidity from on-balance sheet and off-balance
short-term borrowings. Long-term debt was $58.0 billion at
sheet funding sources:
December 31, 2024, and is an important funding source
December 31, December 31,
because of its multi-year borrowing structure. Refer to Note
(Dollars in Millions) 2024 2023 13 of the Notes to Consolidated Financial Statements for
Cash held at the Federal Reserve information on the terms and maturities of the Company’s
Bank and other central banks $ 47,434 $ 52,403 long-term debt issuances and “Balance Sheet Analysis” for
Available investment securities 67,910 34,220 discussion on long-term debt trends. Short-term borrowings
Borrowing capacity from the were $15.5 billion at December 31, 2024, and supplement
Federal Reserve Bank and FHLB 171,226 215,763 the Company’s other funding sources. Refer to Note 12 of
Total available liquidity $ 286,570 $ 302,386 the Notes to Consolidated Financial Statements and
“Balance Sheet Analysis” for further information on the
Borrowing capacity from the Federal Reserve Bank and terms and trends of the Company’s short-term borrowings.
FHLB declined from December 31, 2023 to December 31, The Company’s ability to raise negotiated funding at
2024 primarily due to the expiration of the Federal Reserve competitive prices is influenced by rating agencies’ views
Bank’s Bank Term Funding Program (“BTFP”). This decline of the Company’s credit quality, liquidity, capital and
was partially offset by an increase in available investment earnings. Table 21 details the rating agencies’ most recent
securities as a portion of the securities previously pledged assessments as of December 31, 2024.
through the BTFP were made available for sale or pledging.

49
 TABLE 21 Credit Ratings
Moody's S&P Global Ratings Fitch Ratings DBRS Morningstar

U.S. Bancorp
Long-term issuer rating A3 A A+ AA (low)
Short-term issuer rating N/A A-1 F1 R-1 (middle)
Senior unsecured debt A3 A A AA (low)
Subordinated debt A3 A- A- A (high)
Junior subordinated debt Baa1 N/A N/A N/A
Preferred stock Baa2 BBB BBB A (low)
Commercial paper P-2 N/A F1 R-1 (middle)

U.S. Bank National Association

Long-term issuer rating A2 A+ A+ AA
Short-term issuer rating P-1 A-1 F1 R-1 (high)
Long-term deposits Aa3 N/A AA- AA
Short-term deposits P-1 N/A F1+ N/A
Senior unsecured debt A2 A+ A+ AA
Subordinated debt A2 A N/A AA (low)
Commercial paper P-1 A-1 N/A R-1 (high)
Counterparty risk assessment A1(cr)/P-1(cr)
Counterparty risk rating A2/P-1
Baseline credit assessment a2
companies that have issued at least $1 billion in aggregate
In addition to assessing liquidity risk on a consolidated
principal amount of non-convertible securities, other than
basis, the Company monitors the parent company’s
common equity, in the last three years. However, the parent
liquidity. The parent company’s routine funding
company’s ability to issue debt and other securities under a
requirements consist primarily of operating expenses,
registration statement filed with the SEC under these rules
dividends paid to shareholders, debt service, repurchases
is limited by the debt issuance authority granted by the
of common stock and funds used for acquisitions. The
Company’s Board of Directors and/or the ALCO policy.
parent company obtains funding to meet its obligations
At December 31, 2024, parent company long-term debt
from dividends collected from its subsidiaries and the
outstanding was $35.3 billion, compared with $34.3 billion
issuance of debt and capital securities. The Company
at December 31, 2023. The increase was primarily due to
establishes limits for the minimal number of months into the
$6.5 billion of medium-term note issuances, partially offset
future where the parent company can meet existing and
by $4.6 billion of medium-term note and $1.0 billion of
forecasted obligations with cash and securities held that
subordinated note repayments. As of December 31, 2024,
can be readily monetized. The Company measures and
there was $2.3 billion of parent company debt scheduled to
manages this limit in both normal and adverse conditions.
mature in 2025. Future debt maturities may be met through
The Company maintains sufficient funding to meet
medium-term note and capital security issuances and
expected capital and debt service obligations for 24
dividends from subsidiaries, as well as from parent
months without the support of dividends from subsidiaries
company cash and cash equivalents.
and assuming access to the wholesale markets is
Dividend payments to the Company by its subsidiary
maintained. The Company maintains sufficient liquidity to
banks are subject to regulatory review and statutory
meet its capital and debt service obligations for 12 months
limitations and, in some instances, regulatory approval. In
under adverse conditions without the support of dividends
general, dividends to the parent company from its banking
from subsidiaries or access to the wholesale markets. The
subsidiaries are limited by rules which compare dividends
parent company is currently in excess of required liquidity
to net income for regulatorily-defined periods. For further
minimums.
information, see Note 24 of the Notes to Consolidated
Under SEC rules, the parent company is classified as a
Financial Statements.
“well-known seasoned issuer,” which allows it to file a
The Company is subject to a regulatory Liquidity
registration statement that does not have a limit on
Coverage Ratio (“LCR”) requirement which requires large
issuance capacity. “Well-known seasoned issuers”
banking organizations to maintain an adequate level of
generally include those companies with outstanding
unencumbered high quality liquid assets to meet estimated
common securities with a market value of at least
liquidity needs over a 30-day stressed period. For the three
$700 million held by non-affiliated parties or those
months ended December 31, 2024 and December 31,

50 U.S. Bancorp 2024 Annual Report

2023, the Company's average daily LCR was 106.6 percent clauses. Many of the Company’s commitments to extend
and 109.2 percent, respectively. The Company was credit expire without being drawn and, therefore, total
compliant with this requirement for both of these periods. commitment amounts do not necessarily represent future
The Company is also subject to a regulatory Net Stable liquidity requirements or the Company’s exposure to credit
Funding Ratio (“NSFR”) requirement which requires large loss. Commitments to extend credit also include consumer
banking organizations to maintain a minimum level of stable credit lines that are cancellable upon notification to the
funding based on the liquidity characteristics of their consumer. Total contractual amounts of commitments to
assets, commitments, and derivative exposures over a one- extend credit at December 31, 2024 were $409.4 billion.
year time horizon. The Company was compliant with this The Company also issues and confirms various types of
requirement at December 31, 2024 and December 31, letters of credit, including standby and commercial. Total
2023. contractual amounts of letters of credit at December 31,
2024 were $11.0 billion. For more information on the
European Exposures The Company provides merchant
Company’s commitments to extend credit and letters of
processing and corporate trust services in Europe either
credit, refer to Note 22 in the Notes to Consolidated
directly or through banking affiliations in Europe. Revenue
Financial Statements.
generated from sources in Europe represented
The Company’s off-balance sheet arrangements with
approximately 2 percent of the Company’s total net revenue
unconsolidated entities primarily consist of private
for 2024. Operating cash for these businesses is deposited
investment funds or partnerships that make equity
on a short-term basis typically with certain European central
investments, provide debt financing or support community-
banks. For deposits placed at other European banks,
based investments in tax-advantaged projects. In addition
exposure is mitigated by the Company placing deposits at
to providing investment returns, these arrangements in
multiple banks and managing the amounts on deposit at
many cases assist the Company in complying with
any bank based on institution-specific deposit limits. At
requirements of the Community Reinvestment Act. The
December 31, 2024, the Company had an aggregate
investments in these entities generate a return primarily
amount on deposit with European banks of approximately
through the realization of federal and state income tax
$6.4 billion, predominately with the Central Bank of Ireland
credits and other tax benefits, such as tax deductions from
and Bank of England.
operating losses of the investments, over specified time
In addition, the Company provides financing to domestic
periods. The entities in which the Company invests are
multinational corporations that generate revenue from
generally considered variable interest entities (“VIEs”). The
customers in European countries, transacts with various
Company’s recorded investment in these entities, net of
European banks as counterparties to certain derivative-
contractual equity investment commitments of $5.0 billion,
related activities, and through a subsidiary, manages
was $3.1 billion at December 31, 2024.
money market funds that hold certain investments in
The Company also has non-controlling financial
European sovereign debt. Any deterioration in economic
investments in private funds and partnerships considered
conditions in Europe, including the impacts resulting from
VIEs. The Company’s recorded investment in these entities
the Russia-Ukraine conflict, is not expected to have a
was approximately $264 million at December 31, 2024, and
significant effect on the Company related to these activities.
the Company had unfunded commitments to invest an
Commitments, Contingent Liabilities and Other additional $118 million. For more information on the
Contractual Obligations The Company participates in Company’s interests in unconsolidated VIEs, refer to Note 7
many different contractual arrangements which may or may in the Notes to Consolidated Financial Statements.
not be recorded on its balance sheet, with unrelated or Guarantees are contingent commitments issued by the
consolidated entities, under which the Company has an Company to customers or other third parties requiring the
obligation to pay certain amounts, provide credit or liquidity Company to perform if certain conditions exist or upon the
enhancements or provide market risk support. These occurrence or nonoccurrence of a specified event, such as
arrangements also include any obligation related to a a scheduled payment to be made under contract. The
variable interest held in an unconsolidated entity that Company’s primary guarantees include commitments from
provides financing, liquidity, credit enhancement or market securities lending activities in which indemnifications are
risk support. provided to customers; indemnification or buy-back
In the ordinary course of business, the Company enters provisions related to sales of loans and tax credit
into contractual obligations that may require future cash investments; and merchant charge-back guarantees
payments, including funding for customer loan requests, through the Company’s involvement in providing merchant
customer deposit maturities and withdrawals, debt service, processing services. For certain guarantees, the Company
leases for premises and equipment, and other cash may have access to collateral to support the guarantee, or
commitments. Refer to Notes 6, 11, 13, 16 and 22 in the through the exercise of other recourse provisions, be able
Notes to Consolidated Financial Statements for information to offset some or all of any payments made under these
on the Company’s operating lease obligations, deposits, guarantees.
long-term debt, benefit obligations and guarantees and The Company and certain of its subsidiaries, along with
other commitments, respectively. other Visa U.S.A. Inc. member banks, have a contingent
Commitments to extend credit are legally binding and guarantee obligation to indemnify Visa Inc. for potential
generally have fixed expiration dates or other termination losses arising from antitrust lawsuits challenging the

51
practices of Visa U.S.A. Inc. and MasterCard International. at December 31, 2023. The increase was primarily the
The indemnification by the Company and other Visa U.S.A. result of corporate earnings, partially offset by dividends
Inc. member banks has no maximum amount. Refer to Note paid.
22 in the Notes to Consolidated Financial Statements for The regulatory capital requirements effective for the
further details regarding guarantees, other commitments, Company follow Basel III, with the Company being subject
and contingent liabilities, including maximum potential to calculating its capital adequacy as a percentage of risk-
future payments and current carrying amounts. weighted assets under the standardized approach. Under
Basel III, banking regulators define minimum capital
Capital Management The Company is committed to requirements for banks and financial services holding
managing capital to maintain strong protection for companies. These requirements are expressed in the form
depositors and creditors and for maximum shareholder of a minimum common equity tier 1 capital ratio, tier 1
benefit. The Company also manages its capital to exceed capital ratio, total risk-based capital ratio, tier 1 leverage
regulatory capital requirements for banking organizations. ratio and a tier 1 total leverage exposure, or supplementary
To achieve its capital goals, the Company employs a leverage ratio. The Company’s minimum required level for
variety of capital management tools, including dividends, the common equity tier 1 capital, tier 1 capital and total
common share repurchases, and the issuance of capital ratios included a stress capital buffer of 3.1 percent
subordinated debt, non-cumulative perpetual preferred at December 31, 2024. The Company targets its regulatory
stock, common stock and other capital instruments. capital levels, at both the bank and bank holding company
The Company announced on September 12, 2024 that level, to exceed the “well-capitalized” threshold for these
its Board of Directors had approved a regular quarterly ratios under the FDIC Improvement Act prompt corrective
dividend of $0.50 per common share. This represented a 2 action provisions that are applicable to all banks. Refer to
percent increase over the previous dividend rate per Note 14 of the Notes to Consolidated Financial Statements
common share of $0.49 per quarter. for further detail on the Company’s minimum required
The Company also announced on September 12, 2024 capital ratios and the minimum “well-capitalized” thresholds
that its Board of Directors authorized a share repurchase under the prompt corrective action framework.
program to repurchase up to $5.0 billion of its common Beginning in 2022, the Company began to phase into its
stock, effective September 13, 2024. This share repurchase regulatory capital requirements the cumulative deferred
program replaced the previous share repurchase program impact of its 2020 adoption of the accounting guidance
announced on December 22, 2020, which was terminated related to the impairment of financial instruments based on
effective on September 12, 2024. the current expected credit losses (“CECL”) methodology
Capital distributions, including dividends and stock plus 25 percent of its quarterly credit reserve increases
repurchases, are subject to the approval of the Company’s during 2020 and 2021. This cumulative deferred impact
Board of Directors and compliance with regulatory was phased into the Company’s regulatory capital during
requirements. For a more complete analysis of activities 2022 through 2024, culminating with a fully phased in
impacting shareholders’ equity and capital management regulatory capital calculation beginning in 2025.
programs, refer to Note 14 of the Notes to Consolidated
Financial Statements.
Total U.S. Bancorp shareholders’ equity was $58.6
billion at December 31, 2024, compared with $55.3 billion

52 U.S. Bancorp 2024 Annual Report

 TABLE 22 Regulatory Capital Ratios
At December 31 (Dollars in Millions) 2024 2023
Basel III standardized approach:
Common shareholders’ equity $ 51,770 $ 48,498
Less intangible assets
Goodwill (net of deferred tax liability) (11,508) (11,480)
Other disallowed intangible assets (net of deferred tax liability) (1,846) (2,278)
Other(a) 9,461 10,207
Common equity tier 1 capital 47,877 44,947
Qualifying preferred stock 6,808 6,808
Noncontrolling interests eligible for tier 1 capital 450 450
Other (6) (6)
Tier 1 capital 55,129 52,199
Eligible portion of allowance for credit losses 5,616 5,645
Subordinated debt and noncontrolling interests eligible for tier 2 capital 3,630 4,077
Tier 2 capital 9,246 9,722
Total risk-based capital $ 64,375 $ 61,921
Risk-weighted assets $ 450,498 $ 453,390
Common equity tier 1 capital as a percent of risk-weighted assets 10.6 % 9.9 %
Tier 1 capital as a percent of risk-weighted assets 12.2 11.5
Total risk-based capital as a percent of risk-weighted assets 14.3 13.7
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) 8.3 8.1
Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure (total leverage exposure
ratio) 6.8 6.6
(a) Includes the impact of items included in other comprehensive income (loss), such as unrealized gains (losses) on available-for-sale securities, accumulated net gains on cash flow
hedges, pension liability adjustments, and the portion of deferred tax assets related to net operating loss and tax credit carryforwards not eligible for common equity tier 1 capital.

Table 22 provides a summary of statutory regulatory percent and 7.7 percent at December 31, 2023,
capital ratios in effect for the Company at December 31, respectively. In addition, the Company’s common equity
2024 and 2023. All regulatory ratios exceeded regulatory tier 1 capital to risk-weighted assets ratio, reflecting the full
“well-capitalized” requirements. As of December 31, 2024, implementation of the CECL methodology, was 10.5
U.S. Bank National Association (“USBNA”) also met all percent at December 31, 2024, compared with 9.7 percent
regulatory capital ratios to be considered “well-capitalized”. at December 31, 2023. Refer to “Non-GAAP Financial
There are no conditions or events since December 31, Measures” beginning on page 57 for further information on
2024 that management believes have changed the risk- these other capital ratios.
based category of USBNA. As an approved mortgage seller and servicer, USBNA,
In July 2023, the U.S. federal bank regulatory authorities through its mortgage banking division, is required to
proposed a rule to refine the Basel III capital framework for maintain various levels of shareholder’s equity, as specified
financial institutions. The proposal incorporates elements of by various agencies, including the United States
the international Basel Committee’s post-crisis reforms, Department of Housing and Urban Development,
including the Fundamental Review of the Trading Book to Government National Mortgage Association, Federal Home
replace the existing market risk rule, and introduces new Loan Mortgage Corporation and the Federal National
standardized approaches for credit risk, operational risk Mortgage Association. At December 31, 2024, USBNA met
and credit valuation adjustment (CVA) risk. The proposal’s these requirements.
finalization could revise the risk-based capital measures
applicable to the Company; however, until the proposal is
finalized the exact impacts are unknown.
The Company believes certain other capital ratios are
useful in evaluating its capital adequacy. The Company’s
tangible common equity, as a percent of tangible assets
and as a percent of risk-weighted assets determined in
accordance with transitional regulatory capital
requirements related to the CECL methodology under the
standardized approach, were 5.8 percent and 8.5 percent,
respectively, at December 31, 2024, compared with 5.3

53
Business Segment Financial Review servicing and sales, online services, direct mail, ATMs,
mobile devices, distributed mortgage loan officers, and
The Company’s major business segments are Wealth, intermediary relationships including auto dealerships,
Corporate, Commercial and Institutional Banking, mortgage banks, and strategic business partners.
Consumer and Business Banking, Payment Services, and Consumer and Business Banking contributed $1.9 billion of
Treasury and Corporate Support. the Company’s net income in 2024, or a decrease of
Basis for Financial Presentation Business segment $673 million (26.3 percent), compared with 2023.
results are derived from the Company’s business unit Net revenue decreased $1.1 billion (10.6 percent) in
profitability reporting systems by specifically attributing 2024, compared with 2023. Net interest income, on a
managed balance sheet assets, deposits and other taxable-equivalent basis, decreased $1.0 billion (11.8
liabilities and their related income or expense. Refer to Note percent) in 2024, compared with 2023, due to the impact of
23 of the Notes to Consolidated Financial Statements for deposit mix and pricing. Noninterest income decreased
further information on the business segments’ basis for $69 million (4.1 percent) in 2024, compared with 2023,
financial presentation. primarily due to lower service charges, partially offset by
Designations, assignments and allocations change from higher mortgage banking revenue.
time to time as management systems are enhanced, Noninterest expense decreased $300 million (4.4
methods of evaluating performance or product lines percent) in 2024, compared with 2023, primarily due to
change or business segments are realigned to better lower compensation and employee benefits expense and
respond to the Company’s diverse customer base. During net shared services expense. The provision for credit
2024 and 2023, certain organization and methodology losses increased $104 million in 2024, compared with 2023,
changes were made, including revising the Company’s primarily due to normalizing credit conditions.
business segment funds transfer-pricing methodology Payment Services Payment Services includes consumer
related to deposits and loans during the second quarter of and business credit cards, stored-value cards, debit cards,
2024 and combining its Wealth Management and corporate, government and purchasing card services and
Investment Services and Corporate and Commercial merchant processing. Payment Services contributed $1.0
Banking business segments to create the Wealth, billion of the Company’s net income in 2024, or an increase
Corporate, Commercial and Institutional Banking business of $7 million (0.7 percent), compared with 2023.
segment during the third quarter of 2023. Prior period Net revenue increased $365 million (5.5 percent) in
results were recast and presented on a comparable basis. 2024, compared with 2023. Net interest income, on a
Wealth, Corporate, Commercial and Institutional taxable-equivalent basis, increased $222 million (8.5
Banking Wealth, Corporate, Commercial and Institutional percent) in 2024, compared with 2023, primarily due to
Banking provides core banking, specialized lending, higher loan balances, partially offset by higher funding
transaction and payment processing, capital markets, asset costs. Noninterest income increased $143 million (3.5
management, and brokerage and investment related percent) in 2024, compared with 2023, driven by higher
services to wealth, middle market, large corporate, card revenue due to favorable rates, and higher merchant
commercial real estate, government and institutional processing services revenue due to business volume
clients. Wealth, Corporate, Commercial and Institutional growth.
Banking contributed $4.8 billion of the Company’s net Noninterest expense increased $135 million (3.4
income in 2024, or an increase of $105 million (2.3 percent) in 2024, compared with 2023, reflecting higher net
percent), compared with 2023. shared services expense. The provision for credit losses
Net revenue increased $190 million (1.6 percent) in increased $220 million (15.8 percent) in 2024, compared
2024, compared with 2023. Net interest income, on a with 2023, primarily due to higher net charge-offs.
taxable-equivalent basis, decreased $217 million (2.8 Treasury and Corporate Support Treasury and Corporate
percent) in 2024, compared with 2023, primarily due to the Support includes the Company’s investment portfolios,
impact of deposit mix and pricing. Noninterest income funding, capital management, interest rate risk
increased $407 million (9.8 percent) in 2024, compared management, income taxes not allocated to the business
with 2023, primarily due to higher trust and investment lines, including most investments in tax-advantaged
management fees and commercial products revenue, both projects, and the residual aggregate of those expenses
driven by business growth and favorable market conditions. associated with corporate activities that are managed on a
Noninterest expense increased $5 million (0.1 percent) consolidated basis. Treasury and Corporate Support
in 2024, compared with 2023, primarily due to higher recorded a net loss of $1.4 billion in 2024, compared with a
compensation and employee benefits expense. The net loss of $2.8 billion in 2023.
provision for credit losses increased $45 million (13.2 Net revenue decreased $150 million (17.0 percent) in
percent) in 2024, compared with 2023, primarily due to 2024, compared with 2023. Net interest income, on a
higher net charge-offs. taxable-equivalent basis, decreased $98 million (6.0
Consumer and Business Banking Consumer and percent) in 2024, compared with 2023, primarily due to
Business Banking comprises consumer banking, small higher funding costs, partially offset by higher rates on
business banking and consumer lending. Products and earning assets and balance sheet growth. Noninterest
services are delivered through banking offices, telephone income decreased $52 million (7.0 percent) in 2024,

54 U.S. Bancorp 2024 Annual Report

compared with 2023, primarily due to a decrease in other lower in 2024, compared with 2023, primarily due to the
revenue, partially offset by the impact of a gain on the sale impact of balance sheet repositioning and capital
of mortgage servicing rights during 2024. management actions in 2023.
Noninterest expense decreased $1.5 billion (57.8 Income taxes are assessed to each business segment
percent) in 2024, compared with 2023, primarily due to at a managerial tax rate of 25.0 percent with the residual
lower merger and integration charges and lower FDIC tax expense or benefit to arrive at the consolidated effective
special assessment charges, partially offset by higher tax rate included in Treasury and Corporate Support.
compensation and employee benefits expense. The
provision for credit losses was $406 million (87.7 percent)

55
 TABLE 23 Business Segment Financial Performance
Wealth, Corporate, Commercial and Consumer and
Institutional Banking Business Banking Payment Services
Year Ended December 31 Percent Percent Percent
(Dollars in Millions) 2024 2023 Change 2024 2023 Change 2024 2023 Change
Condensed Income Statement
Net interest income (taxable-equivalent basis) $ 7,645 $ 7,862 (2.8)% $ 7,658 $ 8,683 (11.8)% $ 2,831 $ 2,609 8.5 %
Noninterest income 4,548 4,141 9.8 1,606 1,675 (4.1) 4,198 4,055 3.5
Total net revenue 12,193 12,003 1.6 9,264 10,358 (10.6) 7,029 6,664 5.5
Noninterest expense 5,449 5,444 .1 6,569 6,869 (4.4) 4,055 3,920 3.4
Income (loss) before provision and income
taxes 6,744 6,559 2.8 2,695 3,489 (22.8) 2,974 2,744 8.4
Provision for credit losses 385 340 13.2 182 78 * 1,614 1,394 15.8
Income (loss) before income taxes 6,359 6,219 2.3 2,513 3,411 (26.3) 1,360 1,350 .7
Income taxes and taxable-equivalent
adjustment 1,590 1,555 2.3 629 854 (26.3) 340 337 .9
Net income (loss) 4,769 4,664 2.3 1,884 2,557 (26.3) 1,020 1,013 .7
Net (income) loss attributable to
noncontrolling interests — — — — — — — — —
Net income (loss) attributable to U.S. Bancorp $ 4,769 $ 4,664 2.3 $ 1,884 $ 2,557 (26.3) $ 1,020 $ 1,013 .7
Average Balance Sheet
Loans $ 172,466 $ 175,836 (1.9) $ 155,088 $ 162,012 (4.3) $ 41,081 $ 38,471 6.8
Goodwill 4,825 4,682 3.1 4,326 4,466 (3.1) 3,357 3,327 .9
Other intangible assets 981 1,007 (2.6) 4,539 5,264 (13.8) 277 352 (21.3)
Assets 201,362 202,701 (.7) 168,913 179,247 (5.8) 47,169 44,291 6.5
Noninterest-bearing deposits 56,760 70,908 (20.0) 20,810 30,967 (32.8) 2,685 2,981 (9.9)
Interest-bearing deposits 214,622 203,038 5.7 200,611 185,712 8.0 96 103 (6.8)
Total deposits 271,382 273,946 (.9) 221,421 216,679 2.2 2,781 3,084 (9.8)
Total U.S. Bancorp shareholders’ equity 21,438 22,366 (4.1) 14,426 16,026 (10.0) 10,005 9,310 7.5
Treasury and Consolidated
Corporate Support Company
Year Ended December 31 Percent Percent
(Dollars in Millions) 2024 2023 Change 2024 2023 Change
Condensed Income Statement
Net interest income (taxable-equivalent basis) $ (1,725) $ (1,627) (6.0)% $ 16,409 $ 17,527 (6.4)%
Noninterest income 694 746 (7.0) 11,046 10,617 4.0
Total net revenue (1,031) (881) (17.0) 27,455 28,144 (2.4)
Noninterest expense 1,115 2,640 (57.8) 17,188 18,873 (8.9)
Income (loss) before provision and income
taxes (2,146) (3,521) 39.1 10,267 9,271 10.7
Provision for credit losses 57 463 (87.7) 2,238 2,275 (1.6)
Income (loss) before income taxes (2,203) (3,984) 44.7 8,029 6,996 14.8
Income taxes and taxable-equivalent
adjustment (859) (1,208) 28.9 1,700 1,538 10.5
Net income (loss) (1,344) (2,776) 51.6 6,329 5,458 16.0
Net (income) loss attributable to
noncontrolling interests (30) (29) (3.4) (30) (29) (3.4)
Net income (loss) attributable to U.S. Bancorp $ (1,374) $ (2,805) 51.0 $ 6,299 $ 5,429 16.0
Average Balance Sheet
Loans $ 5,240 $ 4,956 5.7 $ 373,875 $ 381,275 (1.9)
Goodwill — — — 12,508 12,475 .3
Other intangible assets 9 16 (43.8) 5,806 6,639 (12.5)
Assets 246,570 237,201 3.9 664,014 663,440 .1
Noninterest-bearing deposits 2,752 2,912 (5.5) 83,007 107,768 (23.0)
Interest-bearing deposits 11,179 9,042 23.6 426,508 397,895 7.2
Total deposits 13,931 11,954 16.5 509,515 505,663 .8
Total U.S. Bancorp shareholders’ equity 11,337 5,958 90.3 57,206 53,660 6.6
* Not meaningful

56 U.S. Bancorp 2024 Annual Report

Non-GAAP Financial Measures these capital measures disclosed by the Company may be
considered non-GAAP financial measures. Management
In addition to capital ratios defined by banking regulators, believes this information helps investors assess trends in
the Company considers various other measures when the Company’s capital adequacy.
evaluating capital utilization and adequacy, including: The Company discloses the return on tangible common
• Tangible common equity to tangible assets, equity ratio and tangible book value per share as it believes
they are useful financial measures to assess the Company's
• Tangible common equity to risk-weighted assets, and
use of equity.
• Common equity tier 1 capital to risk-weighted assets, The Company also discloses net interest income and
reflecting the full implementation of the CECL related ratios and analysis on a taxable-equivalent basis,
methodology. which may also be considered non-GAAP financial
These capital measures are viewed by management as measures. The Company believes this presentation to be
useful additional methods of evaluating the Company’s the preferred industry measurement of net interest income
utilization of its capital held and the level of capital available as it provides a relevant comparison of net interest income
to withstand unexpected negative market or economic arising from taxable and tax-exempt sources. In addition,
conditions. Additionally, presentation of these measures certain performance measures utilize net interest income on
allows investors, analysts and banking regulators to assess a taxable-equivalent basis, including the efficiency ratio
the Company’s capital position relative to other financial and net interest margin.
services companies. These capital measures are not The Company also discloses percent of net revenue for
defined in generally accepted accounting principles its business lines excluding Treasury and Corporate
(“GAAP”), or are not currently effective or defined in Support to highlight the contributions to net revenue from
banking regulations. In addition, certain of these measures the Company's core revenue-producing businesses.
differ from currently effective capital ratios defined by There may be limits in the usefulness of these measures
banking regulations principally in that the currently effective to investors. As a result, the Company encourages readers
ratios, which are subject to certain transitional provisions, to consider the consolidated financial statements and other
temporarily exclude the full impact of the 2020 adoption of financial information contained in this report in their entirety,
accounting guidance related to impairment of financial and not to rely on any single financial measure.
instruments based on the CECL methodology. As a result,

57
The following tables show the Company’s calculation of these non-GAAP financial measures:

At December 31 (Dollars in Millions) 2024 2023 2022

Total equity $ 59,040 $ 55,771 $ 51,232
Preferred stock (6,808) (6,808) (6,808)
Noncontrolling interests (462) (465) (466)
Common equity(1) 51,770 48,498 43,958
Goodwill (net of deferred tax liability)(a) (11,508) (11,480) (11,395)
Intangible assets (net of deferred tax liability), other than mortgage servicing rights (1,846) (2,278) (2,792)
(2)
Tangible common equity 38,416 34,740 29,771
Common equity tier 1 capital, determined in accordance with transitional regulatory capital
requirements related to the CECL methodology implementation 47,877 44,947 41,560
Adjustments(b) (433) (866) (1,299)
Common equity tier 1 capital, reflecting the full implementation of the CECL methodology(3) 47,444 44,081 40,261
Total assets(4) 678,318 663,491 674,805
Goodwill (net of deferred tax liability)(a) (11,508) (11,480) (11,395)
Intangible assets (net of deferred tax liability), other than mortgage servicing rights (1,846) (2,278) (2,792)
Tangible assets(5) 664,964 649,733 660,618
Risk-weighted assets, determined in accordance with prescribed regulatory capital
requirements effective for the Company(6) 450,498 453,390 496,500
(c)
Adjustments (368) (736) (620)
Risk-weighted assets, reflecting the full implementation of the CECL methodology(7) 450,130 452,654 495,880
Ratios
Common equity to assets(1)/(4) 7.6 % 7.3 % 6.5 %
Tangible common equity to tangible assets(2)/(5) 5.8 5.3 4.5
(2)/(6)
Tangible common equity to risk-weighted assets 8.5 7.7 6.0
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the
CECL methodology(3)/(7) 10.5 9.7 8.1
(a) Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements.
(b) Includes the estimated increase in the allowance for credit losses related to the adoption of the CECL methodology net of deferred taxes.
(c) Includes the impact of the estimated increase in the allowance for credit losses related to the adoption of the CECL methodology.

Year Ended December 31 (Dollars in Millions) 2024 2023 2022

Net interest income $ 16,289 $ 17,396 $ 14,728
Taxable-equivalent adjustment(a) 120 131 118
Net interest income, on a taxable-equivalent basis 16,409 17,527 14,846

Net interest income, on a taxable-equivalent basis (as calculated above) 16,409 17,527 14,846
Noninterest income 11,046 10,617 9,456
Less: Securities gains (losses), net (154) (145) 20
(1) 27,609 28,289 24,282
Total net revenue, excluding net securities gains (losses)
Noninterest expense(2) 17,188 18,873 14,906
Efficiency ratio(2)/(1) 62.3 % 66.7 % 61.4 %
(a) Based on federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes.

58 U.S. Bancorp 2024 Annual Report

 Net Revenue as a Percent of the
Net Revenue as a Consolidated Company
Percent of the Excluding Treasury and
Year Ended December 31, 2024 (Dollars in Millions) Net Revenue Consolidated Company Corporate Support
Wealth, Corporate, Commercial and Institutional Banking $ 12,193 44 % 43 %
Consumer and Business Banking 9,264 34 32
Payment Services 7,029 26 25
Treasury and Corporate Support (1,031) (4)
Consolidated Company 27,455 100 %
Less: Treasury and Corporate Support (1,031)
Consolidated Company excluding Treasury and Corporate Support $ 28,486 100 %

Year Ended December 31 (Dollars in Millions) 2024 2023 2022

Net income applicable to U.S. Bancorp common shareholders $ 5,909 $ 5,051 $ 5,501
Intangible amortization (net-of-tax) 450 502 170
Net income applicable to U.S. Bancorp common shareholders, excluding
intangibles amortization(1) 6,359 5,553 5,671

Average total equity 57,668 54,125 50,882

Average preferred stock (6,808) (6,808) (6,761)
Average noncontrolling interests (462) (465) (466)
(a)
Average goodwill (net of deferred tax liability) (11,485) (11,485) (9,240)
Average intangible assets (net of deferred tax liability), other than mortgage
servicing rights (2,040) (2,480) (991)
Average tangible common equity(2) 36,873 32,887 33,424
Return on tangible common equity(1)/(2) 17.2 % 16.9 % 17.0 %
(a) Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements.

Percent
At December 31 (Dollars in Millions, Except Per Share Data) 2024 2023 Change
Common equity $ 51,770 $ 48,498
(a)
Goodwill (net of deferred tax liability) (11,508) (11,480)
Intangible assets (net of deferred tax liability), other than mortgage servicing rights (1,846) (2,278)
Tangible common equity(1) 38,416 34,740
Common shares outstanding(2) 1,560 1,558
Tangible book value per common share(1)/(2) $ 24.63 $ 22.30 10.4 %
(a) Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements.

Accounting Changes to make estimates and assumptions. The Company’s

financial position and results of operations can be affected
Note 2 of the Notes to Consolidated Financial Statements by these estimates and assumptions, which are integral to
discusses accounting standards recently issued but not yet understanding the Company’s financial statements. Critical
required to be adopted and the expected impact of these accounting policies are those policies management
changes in accounting standards. To the extent the believes are the most important to the portrayal of the
adoption of new accounting standards materially affects the Company’s financial condition and results, and require
Company’s financial condition or results of operations, the management to make estimates that are difficult, subjective
impacts are discussed in the applicable section(s) of the or complex. Most accounting policies are not considered
Management’s Discussion and Analysis and the Notes to by management to be critical accounting policies. Several
Consolidated Financial Statements. factors are considered in determining whether or not a
policy is critical in the preparation of financial statements.
Critical Accounting Policies These factors include, among other things, whether the
estimates are significant to the financial statements, the
The accounting and reporting policies of the Company
nature of the estimates, the ability to readily validate the
comply with accounting principles generally accepted in
estimates with other information (including third-party
the United States and conform to general practices within
sources or available prices), sensitivity of the estimates to
the banking industry. The preparation of financial
changes in economic conditions and whether alternative
statements in conformity with GAAP requires management
accounting methods may be utilized under GAAP.

59
Management has discussed the development and the interest rates, declines in residential and commercial real
selection of critical accounting policies with the Company’s estate prices, high unemployment rates, supply shortages,
Audit Committee. changing fiscal policy, geopolitical risks, tightening in bank
Significant accounting policies are discussed in Note 1 lending standards, and potential bank failures, which could
of the Notes to Consolidated Financial Statements. Those all precipitate a moderate to severe recession and result in
policies considered to be critical accounting policies are increased credit losses.
described below. Under the range of economic scenarios considered, the
allowance for credit losses would have been lower by
Allowance for Credit Losses Management’s evaluation of
$1.1 billion or higher by $2.0 billion. This range reflects the
the appropriate allowance for credit losses is often the most
sensitivity of the allowance for credit losses specifically
critical of all the accounting estimates for a banking
related to the range of economic scenarios considered as
institution. It is an inherently subjective process impacted
of December 31, 2024.
by many factors as discussed throughout the
Because several quantitative and qualitative factors are
Management’s Discussion and Analysis section of the
considered in determining the allowance for credit losses,
Annual Report.
these sensitivity analyses do not necessarily reflect the
The methods utilized to estimate the allowance for credit
nature and extent of future changes in the allowance for
losses, key assumptions and quantitative and qualitative
credit losses. They are intended to provide insights into the
information considered by management in determining the
impact of adverse changes in the economy on the
appropriate allowance for credit losses at December 31,
Company’s modeled loss estimates for the loan portfolio
2024 are discussed in the “Credit Risk Management”
and do not imply any expectation of future deterioration in
section. Although methodologies utilized to determine each
the risk rating or loss rates. Given current processes
element of the allowance reflect management’s assessment
employed by the Company, management believes the risk
of credit risk, imprecision exists in these measurement tools
ratings and loss model estimates currently assigned are
due in part to subjective judgments involved and an
appropriate. It is possible that others, given the same
inherent lag in the data available to quantify current
information, may at any point in time reach different
conditions and events that affect credit loss reserve
reasonable conclusions that could be significant to the
estimates.
Company’s financial statements. Refer to the “Analysis and
Given the many quantitative variables and subjective
Determination of the Allowance for Credit Losses” section
factors affecting the credit portfolio, changes in the
for further information.
allowance for credit losses may not directly coincide with
changes in risk ratings or delinquency status within loan Fair Value Estimates A portion of the Company’s assets
and lease portfolios. This is in part due to the timing of the and liabilities are carried at fair value on the Consolidated
risk rating process in relation to changes in the business Balance Sheet, with changes in fair value recorded either
cycle, the exposure and mix of loans within risk rating through earnings or other comprehensive income (loss) in
categories, levels of nonperforming loans and the timing of accordance with applicable accounting principles
charge-offs and expected recoveries. The allowance for generally accepted in the United States. These include all
credit losses measures the expected loss content on the of the Company’s available-for-sale investment securities,
remaining portfolio exposure, while nonperforming loans derivatives and other trading instruments, MSRs and
and net charge-offs are measures of specific impairment MLHFS. The estimation of fair value also affects other loans
events that have already been confirmed. Therefore, the held for sale, which are recorded at the lower-of-cost-or-fair
degree of change in the forward-looking expected loss in value. The determination of fair value is important for certain
the allowance may differ from the level of changes in other assets that are periodically evaluated for impairment
nonperforming loans and net charge-offs. Management using fair value estimates, including goodwill.
maintains an appropriate allowance for credit losses by Fair value is generally defined as the exit price at which
updating allowance rates to reflect changes in expected an asset or liability could be exchanged in a current
losses, including expected changes in economic or transaction between willing, unrelated parties, other than in
business cycle conditions. Some factors considered in a forced or liquidation sale. Fair value is based on quoted
determining the appropriate allowance for credit losses are market prices in an active market, or if market prices are
more readily quantifiable while other factors require not available, is estimated using models employing
extensive qualitative judgment in determining the overall techniques such as matrix pricing or discounting expected
level of the allowance for credit losses. cash flows. The significant assumptions used in the
The Company considers a range of economic scenarios models, which include assumptions for interest rates,
in its determination of the allowance for credit losses. These discount rates, prepayments and credit losses, are
scenarios are constructed with interrelated projections of independently verified against observable market data
multiple economic variables, and loss estimates are where possible. Where observable market data is not
produced that consider the historical correlation of those available, the estimate of fair value becomes more
economic variables with credit losses, and also the subjective and involves a high degree of judgment. In this
expectation that conditions will eventually normalize over circumstance, fair value is estimated based on
the longer run. Scenarios worse than the Company’s management’s judgment regarding the value that market
expected outcome at December 31, 2024 include risks of participants would assign to the asset or liability. This
persisting inflationary pressures, continued elevated valuation process takes into consideration factors such as

60 U.S. Bancorp 2024 Annual Report

market illiquidity. Imprecision in estimating these factors be received from taxing jurisdictions either currently or
can impact the amount recorded on the balance sheet for a deferred to future periods. Deferred taxes arise from
particular asset or liability with related impacts to earnings differences between assets and liabilities measured for
or other comprehensive income (loss). financial reporting purposes versus income tax reporting
When available, trading and available-for-sale securities purposes. Deferred tax assets are recognized if, in
are valued based on quoted market prices. However, management’s judgment, their realizability is determined to
certain securities are traded less actively and, therefore, be more likely than not. Uncertain tax positions that meet
quoted market prices may not be available. The the more likely than not recognition threshold are measured
determination of fair value may require benchmarking to to determine the amount of benefit to recognize. An
similar instruments or performing a discounted cash flow uncertain tax position is measured at the largest amount of
analysis using estimates of future cash flows and benefit management believes is more likely than not to be
prepayment, interest and default rates. For more realized upon settlement. In estimating accrued taxes, the
information on investment securities, refer to Note 4 of the Company assesses the relative merits and risks of the
Notes to Consolidated Financial Statements. appropriate tax treatment considering statutory, judicial and
As few derivative contracts are listed on an exchange, regulatory guidance in the context of the tax position.
the majority of the Company’s derivative positions are Because of the complexity of tax laws and regulations,
valued using valuation techniques that use readily interpretation can be difficult and subject to legal judgment
observable market inputs. Certain derivatives, however, given specific facts and circumstances. It is possible that
must be valued using techniques that include unobservable others, given the same information, may at any point in time
inputs. For these instruments, the significant assumptions reach different reasonable conclusions regarding the
must be estimated and, therefore, are subject to judgment. estimated amounts of accrued taxes.
Note 19 of the Notes to Consolidated Financial Statements Changes in the estimate of accrued taxes occur
provides a summary of the Company’s derivative positions. periodically due to changes in tax rates, interpretations of
Refer to Note 21 of the Notes to Consolidated Financial tax laws, the status of examinations being conducted by
Statements for additional information regarding estimations various taxing authorities, and newly enacted statutory,
of fair value. judicial and regulatory guidance that impacts the relative
merits and risks of tax positions. These changes, when they
Mortgage Servicing Rights MSRs are capitalized as
occur, affect accrued taxes and can be significant to the
separate assets when loans are sold and servicing is
operating results of the Company. Refer to Note 18 of the
retained, or may be purchased from others. The Company
Notes to Consolidated Financial Statements for additional
records MSRs at fair value. Because MSRs do not trade in
information regarding income taxes.
an active market with readily observable prices, the
Company determines the fair value by estimating the
present value of the asset’s future cash flows utilizing
Controls and Procedures
market-based prepayment rates, option adjusted spread, Under the supervision and with the participation of the
and other assumptions validated through comparison to Company’s management, including its principal executive
trade information, industry surveys and independent third- officer and principal financial officer, the Company has
party valuations. Changes in the fair value of MSRs are evaluated the effectiveness of the design and operation of
recorded in earnings during the period in which they occur. its disclosure controls and procedures (as defined in Rules
Risks inherent in the valuation of MSRs include higher than 13a-15(e) and 15d-15(e) under the Securities Exchange
expected prepayment rates and/or delayed receipt of cash Act of 1934, as amended (the “Exchange Act”)). Based
flows. The Company utilizes derivatives, including interest upon this evaluation, the principal executive officer and
rate swaps, swaptions, forward commitments to buy TBAs, principal financial officer have concluded that, as of the
U.S. Treasury and Eurodollar futures and options on U.S. end of the period covered by this report, the Company’s
Treasury futures, to mitigate the valuation risk. Refer to disclosure controls and procedures were effective.
Notes 9 and 21 of the Notes to Consolidated Financial During the most recently completed fiscal quarter, there
Statements for additional information on the assumptions was no change made in the Company’s internal control
used in determining the fair value of MSRs and an analysis over financial reporting (as defined in Rules 13a-15(f) and
of the sensitivity to changes in interest rates of the fair value 15d-15(f) under the Exchange Act) that has materially
of the MSRs portfolio and the related derivative instruments affected, or is reasonably likely to materially affect, the
used to mitigate the valuation risk. Company’s internal control over financial reporting.
Income Taxes The Company estimates income tax The annual report of the Company’s management on
expense based on amounts expected to be owed to the internal control over financial reporting is provided on page
various tax jurisdictions in which it operates, including 62. The audit report of Ernst & Young LLP, the Company’s
federal, state and local domestic jurisdictions, and an independent accountants, regarding the Company’s
insignificant amount to foreign jurisdictions. The estimated internal control over financial reporting is provided on page
income tax expense is reported in the Consolidated 63.
Statement of Income. Accrued taxes are reported in other
assets or other liabilities on the Consolidated Balance
Sheet and represent the net estimated amount due to or to

61
Report of Management
Responsibility for the financial statements and other information presented throughout this Annual Report rests with the
management of U.S. Bancorp. The Company believes the consolidated financial statements have been prepared in conformity
with accounting principles generally accepted in the United States and present the substance of transactions based on the
circumstances and management’s best estimates and judgment.

In meeting its responsibilities for the reliability of the financial statements, management is responsible for establishing and
maintaining an adequate system of internal control over financial reporting as defined by Rules 13a-15(f) and 15d-15(f) under the
Securities Exchange Act of 1934, as amended. The Company’s system of internal control is designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of publicly filed financial statements in accordance
with accounting principles generally accepted in the United States.

To test compliance, the Company carries out an extensive audit program. This program includes a review for compliance with
written policies and procedures and a comprehensive review of the adequacy and effectiveness of the system of internal control.
Although control procedures are designed and tested, it must be recognized that there are limits inherent in all systems of
internal control, and, therefore, errors and irregularities may nevertheless occur. Projection of any evaluation of effectiveness to
future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.

The Board of Directors of the Company has an Audit Committee composed of directors who are independent of U.S. Bancorp.
The Audit Committee meets periodically with management, the internal auditors and the independent accountants to consider
audit results and to discuss internal accounting control, auditing and financial reporting matters.

Management assessed the effectiveness of the Company’s system of internal control over financial reporting as of December 31,
2024. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the
Treadway Commission in its Internal Control—Integrated Framework (2013 framework). Based on its assessment and those
criteria, management believes the Company maintained effective internal control over financial reporting as of December 31,
2024.

The effectiveness of the Company’s internal control over financial reporting as of December 31, 2024 has been audited by Ernst
& Young LLP, an independent registered public accounting firm, as stated in their accompanying report appearing on page 63.

62 U.S. Bancorp 2024 Annual Report

Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of U.S. Bancorp

Opinion on Internal Control Over Financial Reporting

We have audited U.S. Bancorp’s internal control over financial reporting as of December 31, 2024, based on criteria established
in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission
(2013 framework) (the COSO criteria). In our opinion, U.S. Bancorp (the Company) maintained, in all material respects, effective
internal control over financial reporting as of December 31, 2024, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the consolidated balance sheets of the Company as of December 31, 2024 and 2023, the related consolidated
statements of income, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period
ended December 31, 2024, and the related notes and our report dated February 21, 2025 expressed an unqualified opinion
thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting included in the accompanying Report of Management.
Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are
a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all
material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk,
and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Minneapolis, Minnesota
February 21, 2025

63
Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of U.S. Bancorp

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of U.S. Bancorp (the Company) as of December 31, 2024 and
2023, the related consolidated statements of income, comprehensive income, shareholders’ equity and cash flows for each of
the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “consolidated
financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial
position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the
three years in the period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in
Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission
(2013 framework), and our report dated February 21, 2025 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on
the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to
error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial
statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was
communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are
material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The
communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as
a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit
matter or on the accounts or disclosures to which it relates.

Allowance for Credit Losses

Description of the The Company’s loan and lease portfolio and the associated allowance for credit losses (ACL), were
Matter $379.8 billion and $7.9 billion as of December 31, 2024, respectively. The provision for credit losses was
$2.2 billion for the year ended December 31, 2024. As discussed in Notes 1 and 5 to the financial
statements, the ACL is established for current expected credit losses on the Company’s loan and lease
portfolio, including unfunded credit commitments, by utilizing forward-looking expected loss models.
When determining expected losses, the Company uses multiple probability weighted economic
scenarios over a reasonable and supportable forecast period and then fully reverts to historical loss
experience to estimate losses over the remaining asset lives. Model estimates are adjusted to consider
any relevant changes in portfolio composition, lending policies, underwriting standards, risk
management practices, economic conditions or other factors that would affect the accuracy of the
model. Additionally, management may adjust the ACL for other qualitative factors such as model
imprecision, imprecision in economic scenario assumptions, and emerging risks related to either
changes in the environment that are affecting specific portfolio segments, or changes in portfolio
concentrations.

Auditing management’s ACL estimate and related provision for credit losses was complex due to the
highly judgmental nature of the probability weighted economic scenarios, expected loss models, as well
as model and qualitative factor adjustments.

64 U.S. Bancorp 2024 Annual Report

How We We obtained an understanding, evaluated the design and tested the operating effectiveness of the
Addressed the Company’s controls over the ACL process, including management’s controls over: 1) development of
Matter in Our baseline economic scenario, selection of alternative economic scenarios and implementation of these
Audit scenarios and the probability weights assigned to them; 2) expected loss models, including model
validation, implementation, monitoring, the completeness and accuracy of key inputs and assumptions
used in the models, and management’s output assessment and related adjustments; 3) adjustments to
reflect management’s consideration of qualitative factors; 4) the ACL methodology and governance
process.

With the support of specialists, we assessed the economic scenarios and related probability weights by,
among other procedures, evaluating management’s methodology and agreeing a sample of key
economic variables used to external sources. We also performed and considered the results of various
sensitivity analyses and analytical procedures, including comparison of a sample of the key economic
variables to alternative external sources, historical statistics and peer bank information.

With respect to expected loss models, with the support of specialists, we evaluated model calculation
design and reperformed the calculation for a sample of models. We also tested the appropriateness of
key inputs and assumptions used in these models by agreeing a sample of inputs to internal and external
sources. As to model adjustments, with the support of specialists, we evaluated management’s estimate
methodology and assessment of factors that could potentially impact the accuracy of expected loss
models. We also recalculated a sample of model adjustments and tested internal and external data used
by agreeing a sample of inputs to internal and external sources.

Regarding the completeness of qualitative factors identified and incorporated into measuring the ACL,
with the support of specialists, we evaluated the potential impact of imprecision in the expected loss
models and economic scenario assumptions; emerging risks related to changes in the environment
impacting specific portfolio segments and portfolio concentrations. We also evaluated and tested internal
and external data used in the qualitative adjustments by agreeing significant inputs and underlying data to
internal and external sources.

We evaluated the overall ACL amount, including model estimates and adjustments, qualitative factors
adjustments, and whether the recorded ACL appropriately reflects expected credit losses on the loan and
lease portfolio and unfunded credit commitments. We reviewed historical loss statistics, peer-bank
information, subsequent events and transactions and considered whether they corroborate or contradict
the Company’s measurement of the ACL. We searched for and evaluated information that corroborates or
contradicts management’s forecasted assumptions and related probability weights as well as
identification and measurement of adjustments to model estimates and qualitative factors.

We have served as the Company’s auditor since 2003.

Minneapolis, Minnesota
February 21, 2025

65
Consolidated Financial Statements and Notes Table of Contents
Consolidated Financial Statements
Consolidated Balance Sheet 67
Consolidated Statement of Income 68
Consolidated Statement of Comprehensive Income 69
Consolidated Statement of Shareholders’ Equity 70
Consolidated Statement of Cash Flows 71
Notes to Consolidated Financial Statements
Note 1 — Significant Accounting Policies 72
Note 2 — Accounting Changes 78
Note 3 — Restrictions on Cash and Due From Banks 79
Note 4 — Investment Securities 80
Note 5 — Loans and Allowance for Credit Losses 83
Note 6 — Leases 91
Note 7 — Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities 92
Note 8 — Premises and Equipment 94
Note 9 — Mortgage Servicing Rights 94
Note 10 — Intangible Assets 95
Note 11 — Deposits 96
Note 12 — Short-Term Borrowings 97
Note 13 — Long-Term Debt 97
Note 14 — Shareholders’ Equity 98
Note 15 — Earnings Per Share 103
Note 16 — Employee Benefits 103
Note 17 — Stock-Based Compensation 107
Note 18 — Income Taxes 109
Note 19 — Derivative Instruments 111
Note 20 — Netting Arrangements for Certain Financial Instruments and Securities Financing Activities 116
Note 21 — Fair Values of Assets and Liabilities 119
Note 22 — Guarantees and Contingent Liabilities 125
Note 23 — Business Segments 128
Note 24 — U.S. Bancorp (Parent Company) 132
Note 25 — Subsequent Events 133

66 U.S. Bancorp 2024 Annual Report

U.S. Bancorp
Consolidated Balance Sheet
At December 31 (Dollars in Millions) 2024 2023

Assets
Cash and due from banks $ 56,502 $ 61,192
Investment securities
Held-to-maturity (fair value $66,275 and $74,088, respectively) 78,634 84,045
Available-for-sale ($320 and $338 pledged as collateral, respectively)(a) 85,992 69,706
Loans held for sale (including $2,251 and $2,011 of mortgage loans carried at fair value, respectively) 2,573 2,201
Loans
Commercial 139,484 131,881
Commercial real estate 48,859 53,455
Residential mortgages 118,813 115,530
Credit card 30,350 28,560
Other retail 42,326 44,409
Total loans 379,832 373,835
Less allowance for loan losses (7,583) (7,379)
Net loans 372,249 366,456
Premises and equipment 3,565 3,623
Goodwill 12,536 12,489
Other intangible assets 5,547 6,084
Other assets (including $7,501 and $3,548 of trading securities at fair value pledged as collateral,
respectively)(a) 60,720 57,695
Total assets $ 678,318 $ 663,491

Liabilities and Shareholders’ Equity

Deposits
Noninterest-bearing $ 84,158 $ 89,989
Interest-bearing (including $5,754 and $2,818 of time deposits carried at fair value, respectively) 434,151 422,323
Total deposits 518,309 512,312
Short-term borrowings 15,518 15,279
Long-term debt 58,002 51,480
Other liabilities 27,449 28,649
Total liabilities 619,278 607,720
Shareholders’ equity
Preferred stock 6,808 6,808
Common stock, $.01 par value per share, authorized: 4,000,000,000 shares; issued: 2024 and 2023 —
2,125,725,742 shares 21 21
Capital surplus 8,715 8,673
Retained earnings 76,863 74,026
Less cost of common stock in treasury: 2024 — 565,929,654 shares; 2023 — 567,732,687 shares (24,065) (24,126)
Accumulated other comprehensive income (loss) (9,764) (10,096)
Total U.S. Bancorp shareholders’ equity 58,578 55,306
Noncontrolling interests 462 465
Total equity 59,040 55,771
Total liabilities and equity $ 678,318 $ 663,491
(a) Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.
See Notes to Consolidated Financial Statements.

67
U.S. Bancorp
Consolidated Statement of Income
Year Ended December 31 (Dollars and Shares in Millions, Except Per Share Data) 2024 2023 2022

Interest Income
Loans $ 23,009 $ 22,324 $ 13,603
Loans held for sale 173 147 201
Investment securities 5,111 4,485 3,378
Other interest income 3,373 3,051 763
Total interest income 31,666 30,007 17,945
Interest Expense
Deposits 11,688 8,775 1,872
Short-term borrowings 1,107 1,971 565
Long-term debt 2,582 1,865 780
Total interest expense 15,377 12,611 3,217
Net interest income 16,289 17,396 14,728
Provision for credit losses 2,238 2,275 1,977
Net interest income after provision for credit losses 14,051 15,121 12,751
Noninterest Income
Card revenue 1,679 1,630 1,512
Corporate payment products revenue 773 759 698
Merchant processing services 1,714 1,659 1,579
Trust and investment management fees 2,660 2,459 2,209
Service charges 1,253 1,306 1,298
Commercial products revenue 1,523 1,372 1,105
Mortgage banking revenue 627 540 527
Investment products fees 330 279 235
Securities gains (losses), net (154) (145) 20
Other 641 758 273
Total noninterest income 11,046 10,617 9,456
Noninterest Expense
Compensation and employee benefits 10,554 10,416 9,157
Net occupancy and equipment 1,246 1,266 1,096
Professional services 491 560 529
Marketing and business development 619 726 456
Technology and communications 2,074 2,049 1,726
Other intangibles 569 636 215
Merger and integration charges 155 1,009 329
Other 1,480 2,211 1,398
Total noninterest expense 17,188 18,873 14,906
Income before income taxes 7,909 6,865 7,301
Applicable income taxes 1,580 1,407 1,463
Net income 6,329 5,458 5,838
Net (income) loss attributable to noncontrolling interests (30) (29) (13)
Net income attributable to U.S. Bancorp $ 6,299 $ 5,429 $ 5,825
Net income applicable to U.S. Bancorp common shareholders $ 5,909 $ 5,051 $ 5,501
Earnings per common share $ 3.79 $ 3.27 $ 3.69
Diluted earnings per common share $ 3.79 $ 3.27 $ 3.69
Average common shares outstanding 1,560 1,543 1,489
Average diluted common shares outstanding 1,561 1,543 1,490
See Notes to Consolidated Financial Statements.

68 U.S. Bancorp 2024 Annual Report

U.S. Bancorp
Consolidated Statement of Comprehensive Income
Year Ended December 31 (Dollars in Millions) 2024 2023 2022
Net income $ 6,329 $ 5,458 $ 5,838
Other Comprehensive Income (Loss)
Changes in unrealized gains (losses) on investment securities available-for-sale (60) 1,500 (13,656)
Changes in unrealized gains (losses) on derivative hedges (676) (252) (75)
Changes in debit valuation adjustments 1 — —
Foreign currency translation 18 21 (10)
Changes in unrealized gains (losses) on retirement plans 245 (262) 526
Reclassification to earnings of realized (gains) losses 910 748 544
Income taxes related to other comprehensive income (loss) (106) (444) 3,207
Total other comprehensive income (loss) 332 1,311 (9,464)
Comprehensive income (loss) 6,661 6,769 (3,626)
Comprehensive (income) loss attributable to noncontrolling interests (30) (29) (13)
Comprehensive income (loss) attributable to U.S. Bancorp $ 6,631 $ 6,740 $ (3,639)
See Notes to Consolidated Financial Statements.

69
U.S. Bancorp
Consolidated Statement of Shareholders’ Equity
U.S. Bancorp Shareholders
Accumulated Total U.S.
Common Other Bancorp
(Dollars and Shares in Millions, Except Per Shares Preferred Common Capital Retained Treasury Comprehensive Shareholders’ Noncontrolling Total
Share Data) Outstanding Stock Stock Surplus Earnings Stock Income (Loss) Equity Interests Equity
Balance December 31, 2021 1,484 $ 6,371 $ 21 $ 8,539 $ 69,201 $(27,271) $ (1,943) $ 54,918 $ 469 $ 55,387
Net income (loss) 5,825 5,825 13 5,838
Other comprehensive income (loss) (9,464) (9,464) (9,464)
Preferred stock dividends(a) (296) (296) (296)
Common stock dividends ($1.88 per
share) (2,829) (2,829) (2,829)
Issuance of preferred stock 437 437 437
Issuance of common and treasury stock 48 (32) 2,071 2,039 2,039
Purchase of treasury stock (1) (69) (69) (69)
Distributions to noncontrolling interests — (13) (13)
Net other changes in noncontrolling
interests — (3) (3)
Stock option and restricted stock grants 205 205 205
Balance December 31, 2022 1,531 $ 6,808 $ 21 $ 8,712 $ 71,901 $(25,269) $ (11,407) $ 50,766 $ 466 $ 51,232
Change in accounting principle(b) 46 46 46
Net income (loss) 5,429 5,429 29 5,458
Other comprehensive income (loss) 1,311 1,311 1,311
Preferred stock dividends(c) (350) (350) (350)
Common stock dividends ($1.93 per
share) (3,000) (3,000) (3,000)
Issuance of common and treasury stock 28 (264) 1,205 941 941
Purchase of treasury stock (1) (62) (62) (62)
Distributions to noncontrolling interests — (29) (29)
Net other changes in noncontrolling
interests — (1) (1)
Stock option and restricted stock grants 225 225 225
Balance December 31, 2023 1,558 $ 6,808 $ 21 $ 8,673 $ 74,026 $(24,126) $ (10,096) $ 55,306 $ 465 $ 55,771
Net income (loss) 6,299 6,299 30 6,329
Other comprehensive income (loss) 332 332 332
Preferred stock dividends(d) (352) (352) (352)
Common stock dividends ($1.98 per
share) (3,110) (3,110) (3,110)
Issuance of common and treasury stock 6 (199) 234 35 35
Purchase of treasury stock (4) (173) (173) (173)
Distributions to noncontrolling interests — (30) (30)
Net other changes in noncontrolling
interests — (3) (3)
Stock option and restricted stock grants 241 241 241
Balance December 31, 2024 1,560 $ 6,808 $ 21 $ 8,715 $ 76,863 $(24,065) $ (9,764) $ 58,578 $ 462 $ 59,040
(a) Reflects dividends declared per share on the Company’s Series A, Series B, Series J, Series K, Series L, Series M, Series N, and Series O Non-Cumulative Perpetual Preferred
Stock of $3,965.458, $962.487, $1,325.00, $1,375.00, $937.50, $1,000.00, $925.00, and $1,050.00, respectively.
(b) Effective January 1, 2023, the Company adopted accounting guidance which removed the separate recognition and measurement of troubled debt restructurings. Upon adoption,
the Company reduced its allowance for credit losses and increased retained earnings net of deferred taxes through a cumulative-effect adjustment
(c) Reflects dividends declared per share on the Company’s Series A, Series B, Series J, Series K, Series L, Series M, Series N, and Series O Non-Cumulative Perpetual Preferred
Stock of $6,439.904, $1,503.518, $1,325.00, $1,375.00, $937.50, $1,000.00, $925.00, and $1,125.00, respectively.
(d) Reflects dividends declared per share on the Company’s Series A, Series B, Series J, Series K, Series L, Series M, Series N and Series O Non-Cumulative Perpetual Preferred
Stock of $6,537.806, $1,527.702, $1,325.00, $1,375.00, $937.50, $1,000.00, $925.00, and $1,125.00, respectively.
See Notes to Consolidated Financial Statements.

70 U.S. Bancorp 2024 Annual Report

U.S. Bancorp
Consolidated Statement of Cash Flows
Year Ended December 31 (Dollars in Millions) 2024 2023 2022

Operating Activities
Net income attributable to U.S. Bancorp $ 6,299 $ 5,429 $ 5,825
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses 2,238 2,275 1,977
Depreciation and amortization of premises and equipment 370 382 345
Amortization of intangibles 569 636 215
(Gain) loss on sale of loans held for sale (184) 7 387
(Gain) loss on sale of securities and other assets 123 119 (188)
Loans originated for sale, net of repayments (24,225) (26,936) (33,127)
Proceeds from sales of loans held for sale 24,008 26,686 38,895
Other, net 2,075 (151) 6,790
Net cash provided by operating activities 11,273 8,447 21,119
Investing Activities
Proceeds from sales of available-for-sale investment securities 13,125 11,209 36,391
Proceeds from maturities of held-to-maturity investment securities 6,161 6,164 5,759
Proceeds from maturities of available-for-sale investment securities 6,006 6,314 14,927
Purchases of held-to-maturity investment securities (246) (932) (7,091)
Purchases of available-for-sale investment securities (35,886) (8,342) (24,592)
Net (increase) decrease in loans outstanding (7,278) 3,829 (27,318)
Proceeds from sales of loans 645 5,707 4,420
Purchases of loans (1,264) (1,106) (2,113)
Net (increase) decrease in securities purchased under agreements to resell (3,859) (2,404) 252
Net cash (paid for) received from acquisitions (103) (330) 12,257
Other, net (1,835) (1,184) (5,392)
Net cash (used in) provided by investing activities (24,534) 18,925 7,500
Financing Activities
Net increase (decrease) in deposits 6,001 (12,291) (17,215)
Net increase (decrease) in short-term borrowings 239 (16,508) 15,213
Proceeds from issuance of long-term debt 12,017 15,583 8,732
Principal payments or redemption of long-term debt (6,042) (4,084) (6,926)
Proceeds from issuance of preferred stock — — 437
Proceeds from issuance of common stock 32 951 21
Repurchase of preferred stock — — (1,100)
Repurchase of common stock (173) (62) (69)
Cash dividends paid on preferred stock (356) (341) (299)
Cash dividends paid on common stock (3,092) (2,970) (2,776)
Other, net (55) — —
Net cash provided by (used in) financing activities 8,571 (19,722) (3,982)
Change in cash and due from banks (4,690) 7,650 24,637
Cash and due from banks at beginning of period 61,192 53,542 28,905
Cash and due from banks at end of period $ 56,502 $ 61,192 $ 53,542

Supplemental Cash Flow Disclosures

Cash paid for income taxes $ 499 $ 645 $ 767
Cash paid for interest 15,382 12,282 2,717
Noncash transfer of available-for-sale investment securities to held-to-maturity — — 40,695
Net noncash transfers to foreclosed property 24 26 23
Acquisitions
Assets acquired (sold) $ 106 $ (83) $ 106,209
Liabilities (assumed) sold (3) 413 (95,753)
Net $ 103 $ 330 $ 10,456
See Notes to Consolidated Financial Statements.

71
Notes to Consolidated Financial Statements
Expected credit losses, if any, are recorded through the
NOTE 1 Significant Accounting Policies establishment of an allowance for credit losses.

U.S. Bancorp is a financial services holding company Securities Purchased Under Agreements to Resell and
headquartered in Minneapolis, Minnesota, serving millions Securities Sold Under Agreements to Repurchase
of local, national and global customers. U.S. Bancorp and Securities purchased under agreements to resell and
its subsidiaries (the “Company”) provide a full range of securities sold under agreements to repurchase are
financial services, including lending and depository accounted for as collateralized financing transactions with
services through banking offices principally in the Midwest a receivable or payable recorded at the amounts at which
and West regions of the United States, through online the securities were acquired or sold, plus accrued interest.
services, over mobile devices and through other Collateral requirements are continually monitored and
distribution channels. The Company also engages in credit additional collateral is received or provided as required.
card, merchant, and ATM processing, mortgage banking, The Company records a receivable or payable for cash
cash management, capital markets, insurance, trust and collateral paid or received.
investment management, brokerage, and leasing activities,
principally in domestic markets. Equity Investments
Basis of Presentation The consolidated financial Equity investments in entities where the Company has a
statements include the accounts of the Company and its significant influence (generally between 20 percent and 50
subsidiaries and all VIEs for which the Company has both percent ownership), but does not control the entity, are
the power to direct the activities of the VIE that most accounted for using the equity method. Investments in
significantly impact the VIE’s economic performance, and limited partnerships and similarly structured limited liability
the obligation to absorb losses or right to receive benefits companies where the Company’s ownership interest is
of the VIE that could potentially be significant to the VIE. greater than 5 percent are accounted for using the equity
Consolidation eliminates intercompany accounts and method. Equity investments not using the equity method
transactions. Certain items in prior periods have been are accounted for at fair value with changes in fair value
reclassified to conform to the current period presentation. and realized gains or losses reported in noninterest
income, unless fair value is not readily determinable, in
Uses of Estimates The preparation of financial statements which case the investment is carried at cost subject to
in conformity with accounting principles generally accepted adjustments for any observable market transactions on the
in the United States requires management to make same or similar instruments of the investee. Most of the
estimates and assumptions that affect the amounts Company’s equity investments do not have readily
reported in the financial statements and accompanying determinable fair values. All equity investments are
notes. Actual experience could differ from those estimates evaluated for impairment at least annually and more
and assumptions. frequently if certain criteria are met.

Securities Loans
Realized gains or losses on securities are determined on a The Company offers a broad array of lending products and
trade date basis based on the specific amortized cost of categorizes its loan portfolio into two segments, which is
the investments sold. the level at which it develops and documents a systematic
Trading Securities Securities held for resale are classified methodology to determine the allowance for credit losses.
as trading securities and are included in other assets and The Company’s two loan portfolio segments are
reported at fair value. Changes in fair value and realized commercial lending and consumer lending. The Company
gains or losses are reported in noninterest income. further disaggregates its loan portfolio segments into
various classes based on their underlying risk
Available-for-sale Securities Debt securities that are not characteristics. The two classes within the commercial
trading securities but may be sold before maturity in lending segment are commercial loans and commercial
response to changes in the Company’s interest rate risk real estate loans. The three classes within the consumer
profile, funding needs, demand for collateralized deposits lending segment are residential mortgages, credit card
by public entities or other reasons, are carried at fair value loans and other retail loans.
with unrealized net gains or losses reported within other
comprehensive income (loss). Declines in fair value related Originated Loans Held for Investment Loans the
to credit, if any, are recorded through the establishment of Company originates as held for investment are reported at
an allowance for credit losses. the principal amount outstanding, net of unearned interest
income and deferred fees and costs, and any direct
Held-to-maturity Securities Debt securities for which the principal charge-offs. Interest income is accrued on the
Company has the positive intent and ability to hold to unpaid principal balances as earned. Loan and
maturity are reported at historical cost adjusted for commitment fees and certain direct loan origination costs
amortization of premiums and accretion of discounts.

72 U.S. Bancorp 2024 Annual Report

are deferred and recognized over the life of the loan and/or expectations. These factors may include, but are not limited
commitment period as yield adjustments. to, loan servicing practices, regulatory guidance, and/or
fiscal and monetary policy actions.
Purchased Loans All purchased loans are recorded at fair The allowance recorded for credit losses utilizes
value at the date of purchase and those acquired on or forward-looking expected loss models to consider a variety
after January 1, 2020 are divided into those considered of factors affecting lifetime credit losses. These factors
PCD and those not considered PCD. An allowance for include, but are not limited to, macroeconomic variables
credit losses is established for each population and such as unemployment rates, real estate prices, gross
considers product mix, risk characteristics of the portfolio, domestic product levels, inflation, interest rates and
delinquency status and refreshed loan-to-value ratios when corporate bonds spreads, as well as loan and borrower
possible. The allowance established for purchased loans characteristics, such as internal risk ratings on commercial
not considered PCD is recognized through provision loans and consumer credit scores, delinquency status,
expense upon acquisition, whereas the allowance collateral type and available valuation information,
established for loans considered PCD at acquisition is consideration of end-of-term losses on lease residuals, and
offset by an increase in the basis of the acquired loans. Any the remaining term of the loan, adjusted for expected
subsequent increases and decreases in the allowance prepayments. For each loan portfolio, including those loans
related to purchased loans, regardless of PCD status, are modified under various loan modification programs, model
recognized through provision expense, with charge-offs estimates are adjusted as necessary to consider any
charged to the allowance. relevant changes in portfolio composition, lending policies,
Commitments to Extend Credit Unfunded commitments underwriting standards, risk management practices,
for residential mortgage loans intended to be held for sale economic conditions or other factors that would affect the
are considered derivatives and recorded in other assets accuracy of the model. Expected credit loss estimates also
and other liabilities on the Consolidated Balance Sheet at include consideration of expected cash recoveries on loans
fair value with changes in fair value recorded in noninterest previously charged-off or expected recoveries on collateral
income. All other unfunded loan commitments are not dependent loans where recovery is expected through sale
considered derivatives and are not reported on the of the collateral at fair value less selling costs. Where loans
Consolidated Balance Sheet. Reserves for credit exposure do not exhibit similar risk characteristics, an individual
on all other unfunded credit commitments are recorded in analysis is performed to consider expected credit losses.
other liabilities. For loans and leases that do not share similar risk
characteristics with a pool of loans, the Company
Allowance for Credit Losses The allowance for credit establishes individually assessed reserves. Reserves for
losses is established for current expected credit losses on individual commercial nonperforming loans greater than $5
the Company’s loan and lease portfolio, including unfunded million in the commercial lending segment are analyzed
credit commitments. The allowance considers expected utilizing expected cash flows discounted using the original
losses for the remaining lives of the applicable assets, effective interest rate, the observable market price of the
inclusive of expected recoveries. The allowance for credit loan, or the fair value of the collateral, less selling costs, for
losses is increased through provisions charged to earnings collateral-dependent loans as appropriate. For smaller
and reduced by net charge-offs. Management evaluates commercial loans collectively evaluated for impairment,
the appropriateness of the allowance for credit losses on a historical loss experience is also incorporated into the
quarterly basis. allowance methodology applied to this category of loans.
Multiple economic scenarios are considered over a The Company’s methodology for determining the
three-year reasonable and supportable forecast period, appropriate allowance for credit losses also considers the
which includes increasing consideration of historical loss imprecision inherent in the methodologies used and
experience over years two and three. These economic allocated to the various loan portfolios. As a result, amounts
scenarios are constructed with interrelated projections of determined under the methodologies described above are
multiple economic variables, and loss estimates are adjusted by management to consider the potential impact
produced that consider the historical correlation of those of other qualitative factors not captured in the quantitative
economic variables with credit losses. After the forecast model adjustments which include, but are not limited to, the
period, the Company fully reverts to long-term historical following: model imprecision, imprecision in economic
loss experience, adjusted for prepayments and scenario assumptions, and emerging risks related to either
characteristics of the current loan and lease portfolio, to changes in the environment that are affecting specific
estimate losses over the remaining life of the portfolio. The portfolios, or changes in portfolio concentrations over time
economic scenarios are updated at least quarterly and are that may affect model performance. The consideration of
designed to provide a range of reasonable estimates, both these items results in adjustments to allowance amounts
better and worse than current expectations. Scenarios are included in the Company’s allowance for credit losses for
weighted based on the Company’s expectation of each loan portfolio.
economic conditions for the foreseeable future and reflect The Company also assesses the credit risk associated
significant judgment and consideration of economic with off-balance sheet loan commitments, letters of credit,
forecast uncertainty. Final loss estimates also consider investment securities and derivatives. Credit risk
factors affecting credit losses not reflected in the scenarios, associated with derivatives is reflected in the fair values
due to the unique aspects of current conditions and

73
recorded for those positions. The liability for off-balance and other loan agreements modified to require only
sheet credit exposure related to loan commitments and principal payments and, as such, are reported as
other credit guarantees is included in other liabilities. nonaccrual.
Because business processes and credit risks associated For all loan classes, interest payments received on
with unfunded credit commitments are essentially the same nonaccrual loans are generally recorded as a reduction to
as for loans, the Company utilizes similar processes to a loan’s carrying amount while a loan is on nonaccrual and
estimate its liability for unfunded credit commitments. are recognized as interest income upon payoff of the loan.
The results of the analysis are evaluated quarterly to However, interest income may be recognized for interest
confirm the estimates are appropriate for each specific loan payments if the remaining carrying amount of the loan is
portfolio, as well as the entire loan portfolio, as the entire believed to be collectible. In certain circumstances, loans
allowance for credit losses is available for the entire loan in any class may be restored to accrual status, such as
portfolio. when a loan has demonstrated sustained repayment
performance or no amounts are past due and prospects for
Credit Quality The credit quality of the Company’s loan
future payment are no longer in doubt; or when the loan
portfolios is assessed as a function of net credit losses,
becomes well secured and is in the process of collection.
levels of nonperforming assets and delinquencies, and
Loans where there has been a partial charge-off may be
credit quality ratings as defined by the Company.
returned to accrual status if all principal and interest
For all loan portfolio classes, loans are considered
(including amounts previously charged-off) is expected to
past due based on the number of days delinquent except
be collected and the loan is current.
for monthly amortizing loans which are classified delinquent
The Company classifies its loan portfolio classes using
based upon the number of contractually required payments
internal credit quality ratings on a quarterly basis. These
not made (for example, two missed payments is considered
ratings include pass, special mention and classified, and
30 days delinquent). When a loan is placed on nonaccrual
are an important part of the Company’s overall credit risk
status, unpaid accrued interest is reversed, reducing
management process and evaluation of the allowance for
interest income in the current period.
credit losses. Loans with a pass rating represent those
Commercial lending segment loans are generally placed
loans not classified on the Company’s rating scale for
on nonaccrual status when the collection of principal and
problem credits, as minimal credit risk has been identified.
interest has become 90 days past due or is otherwise
Special mention loans are those loans that have a potential
considered doubtful. Commercial lending segment loans
weakness deserving management’s close attention.
are generally fully charged down if unsecured by collateral
Classified loans are those loans where a well-defined
or partially charged down to the fair value of the collateral
weakness has been identified that may put full collection of
securing the loan, less costs to sell, when the loan is
contractual cash flows at risk. It is possible that others,
placed on nonaccrual.
given the same information, may reach different reasonable
Consumer lending segment loans are generally
conclusions regarding the credit quality rating classification
charged-off at a specific number of days or payments past
of specific loans.
due. Residential mortgages and other retail loans secured
by 1-4 family properties are generally charged down to the Loan Modifications In certain circumstances, the
fair value of the collateral securing the loan, less costs to Company may modify the terms of a loan to maximize the
sell, at 180 days past due. Residential mortgage loans and collection of amounts due when a borrower is experiencing
lines in a first lien position are placed on nonaccrual status financial difficulties or is expected to experience difficulties
in instances where a partial charge-off occurs unless the in the near-term. The Company recognizes interest on
loan is well secured and in the process of collection. modified loans if full collection of contractual principal and
Residential mortgage loans and lines in a junior lien interest is expected. The effects of modifications on credit
position secured by 1-4 family properties are placed on loss expectations, such as improved payment capacity,
nonaccrual status at 120 days past due or when they are longer expected lives and other factors, are considered
behind a first lien that has become 180 days or greater past when measuring the allowance for credit losses.
due or placed on nonaccrual status. Any secured Modification performance, including redefault rates and
consumer lending segment loan whose borrower has had how these compare to historical losses, are also
debt discharged through bankruptcy, for which the loan considered. Modifications generally do not result in
amount exceeds the fair value of the collateral, is charged significant changes to the Company’s allowance for credit
down to the fair value of the related collateral and the losses.
remaining balance is placed on nonaccrual status. Credit For the commercial lending segment, modifications
card loans continue to accrue interest until the account is generally result in the Company working with borrowers on
charged-off. Credit cards are charged-off at 180 days past a case-by-case basis. Commercial and commercial real
due. Other retail loans not secured by 1-4 family properties estate modifications generally include extensions of the
are charged-off at 120 days past due; and revolving maturity date and may be accompanied by an increase or
consumer lines are charged-off at 180 days past due. decrease to the interest rate. In addition, the Company may
Similar to credit cards, other retail loans are generally not work with the borrower in identifying other changes that
placed on nonaccrual status because of the relative short mitigate loss to the Company, which may include additional
period of time to charge-off. Certain retail customers having collateral or guarantees to support the loan. To a lesser
financial difficulties may have the terms of their credit card

74 U.S. Bancorp 2024 Annual Report

extent, the Company may provide an interest rate The Company, as lessee, leases certain assets for use
reduction. in its operations. Leased assets primarily include retail
Modifications for the consumer lending segment are branches, operations centers and other corporate
generally part of programs the Company has initiated. The locations, and, to a lesser extent, office and computer
Company modifies residential mortgage loans under equipment. For each lease with an original term greater
Federal Housing Administration, United States Department than 12 months, the Company records a lease liability and
of Veterans Affairs, or its own internal programs. Under a corresponding right of use (“ROU”) asset. The Company
these programs, the Company offers qualifying accounts for the lease and non-lease components in the
homeowners the opportunity to permanently modify their majority of its lease contracts as a single lease component,
loan and achieve more affordable monthly payments. with the determination of the lease liability at lease
These modifications may include adjustments to interest inception based on the present value of the consideration
rates, conversion of adjustable rates to fixed rates, to be paid under the contract. The discount rate used by
extension of maturity dates or deferrals of payments, the Company is determined at commencement of the lease
capitalization of accrued interest and/or outstanding using a secured rate for a similar term as the period of the
advances, or in limited situations, partial forgiveness of loan lease. The Company’s leases do not include significant
principal. In some instances, participation in residential variable lease payments.
mortgage loan modification programs requires the Certain of the Company’s real estate leases include
customer to complete a short-term trial period. A options to extend. Lease extension options are generally
permanent loan modification is contingent on the customer exercisable at market rates. Option periods that the
successfully completing the trial period arrangement, and Company is reasonably certain that it will exercise are
the loan documents are not modified until that time. included in the calculation of its ROU assets and lease
Credit card and other retail loan modifications are liabilities.
generally part of distinct modification programs providing
Other Real Estate OREO is included in other assets, and is
customers experiencing financial difficulty with
property acquired through foreclosure or other proceedings
modifications whereby balances may be amortized up to 60
on defaulted loans. OREO is initially recorded at fair value,
months, and generally include waiver of fees and reduced
less estimated selling costs. The fair value of OREO is
interest rates.
evaluated regularly and any decreases in value along with
Leases The Company, as a lessor, originates retail and holding costs, such as taxes and insurance, are reported in
commercial leases either directly to the consumer or noninterest expense.
indirectly through dealer networks. Retail leases, primarily
automobiles, have terms up to 5 years. Commercial leases Loans Held For Sale
may include high dollar assets such as aircraft or lower
Loans held for sale (“LHFS”) represent mortgage loans
cost items such as office equipment. At lease inception,
intended to be sold in the secondary market and other
retail lease customers may be provided with an end-of-term
loans that management has an active plan to sell. LHFS are
purchase option, which is based on the contractual residual
carried at the lower-of-cost-or-fair value as determined on
value of the automobile at the expiration of the lease.
an aggregate basis by type of loan with the exception of
Automobile leases do not typically contain options to
loans for which the Company has elected fair value
extend or terminate the lease. Equipment leases may
accounting, which are carried at fair value. Any writedowns
contain various types of purchase options. Some option
to fair value upon the transfer of loans to LHFS are reflected
amounts are a stated value, while others are determined
in loan charge-offs.
using the fair market value at the time of option exercise.
Where an election is made to carry the LHFS at fair
Residual values on leased assets are reviewed regularly
value, any change in fair value is recognized in noninterest
for impairment. Residual valuations for retail leases are
income. Where an election is made to carry LHFS at lower-
based on independent assessments of expected used
of-cost-or-fair value, any further decreases are recognized
automobile sale prices at the end of the lease term.
in noninterest income and increases in fair value above the
Impairment tests are conducted based on these valuations
loan cost basis are not recognized until the loans are sold.
considering the probability of the lessee returning the asset
Fair value elections are made at the time of origination or
to the Company, re-marketing efforts, insurance coverage
purchase based on the Company’s fair value election
and ancillary fees and costs. Valuations for commercial
policy. The Company has elected fair value accounting for
leases are based upon external or internal management
substantially all its MLHFS.
appraisals. The Company manages its risk to changes in
the residual value of leased vehicles, office and business
equipment, and other assets through disciplined residual
Derivative Financial Instruments
valuation setting at the inception of a lease, diversification In the ordinary course of business, the Company enters into
of its leased assets, regular residual asset valuation reviews derivative transactions to manage various risks and to
and monitoring of residual value gains or losses upon the accommodate the business requirements of its customers.
disposition of assets. Retail lease residual value risk is Derivative instruments are reported in other assets or other
mitigated further by the purchase of residual value liabilities at fair value. Changes in a derivative’s fair value
insurance coverage and effective end-of-term marketing of are recognized currently in earnings unless specific hedge
off-lease vehicles. accounting criteria are met.

75
 All derivative instruments that qualify and are provided. The Company predominately records card
designated for hedge accounting are recorded at fair value revenue within the Payment Services business segment.
and classified as either a hedge of the fair value of a
Corporate Payment Products Revenue Corporate
recognized asset or liability (“fair value hedge”); a hedge of
payment products revenue primarily includes interchange
a forecasted transaction or the variability of cash flows to
from commercial card products processed through card
be received or paid related to a recognized asset or liability
association networks and revenue from proprietary network
(“cash flow hedge”); or a hedge of the volatility of a net
transactions. The Company records corporate payment
investment in foreign operations driven by changes in
products revenue as services are provided. Certain
foreign currency exchange rates (“net investment hedge”).
payments to card associations and customers are also
Changes in the fair value of a derivative that is highly
recorded within corporate payment products revenue as
effective and designated as a fair value hedge, and the
services are provided. Corporate payment products
offsetting changes in the fair value of the hedged item, are
revenue is recorded within the Payment Services business
recorded in earnings. Changes in the fair value of a
segment.
derivative that is highly effective and designated as a cash
flow hedge are recorded in other comprehensive income Merchant Processing Services Merchant processing
(loss) until cash flows of the hedged item are realized. services revenue consists principally of merchant discount
Changes in the fair value of net investment hedges that are and other transaction and account management fees
highly effective are recorded in other comprehensive charged to merchants for the electronic processing of card
income (loss). The Company performs an assessment, at association network transactions, less interchange paid to
inception and, at a minimum, quarterly thereafter, to the card-issuing bank, card association assessments, and
determine the effectiveness of the derivative in offsetting revenue sharing amounts. All of these are recognized at the
changes in the value or cash flows of the hedged item(s). time the merchant’s services are performed. The Company
If a derivative designated as a cash flow hedge is may enter into revenue sharing agreements with referral
terminated or ceases to be highly effective, the gain or loss partners or in connection with purchases of merchant
in other comprehensive income (loss) is amortized to contracts from sellers. The revenue sharing amounts are
earnings over the period the forecasted hedged determined primarily on sales volume processed or
transactions impact earnings. If a hedged forecasted revenue generated for a particular group of merchants.
transaction is no longer probable, hedge accounting is Merchant processing revenue also includes revenues
ceased and any gain or loss included in other related to point-of-sale equipment recorded as sales when
comprehensive income (loss) is reported in earnings the equipment is shipped or as earned for equipment
immediately, unless the forecasted transaction is at least rentals. The Company records merchant processing
reasonably possible of occurring, whereby the amounts services revenue within the Payment Services business
remain within other comprehensive income (loss). segment.

Revenue Recognition Trust and Investment Management Fees Trust and

investment management fees are recognized over the
In the ordinary course of business, the Company period in which services are performed and are based on a
recognizes income derived from various revenue percentage of the fair value of the assets under
generating activities. Certain revenues are generated from management or administration, fixed based on account
contracts where they are recognized when, or as services type, or transaction-based fees. Services provided to
or products are transferred to customers for amounts the clients include trustee, transfer agent, custodian, fiscal
Company expects to be entitled. Revenue generating agent, escrow, fund accounting and administration
activities related to financial assets and liabilities are also services. Services provided to mutual funds may include
recognized, including mortgage servicing fees, loan selling, distribution and marketing services. Trust and
commitment fees, foreign currency remeasurements, and investment management fees are predominately recorded
gains and losses on securities, equity investments and within the Wealth, Corporate, Commercial and Institutional
unconsolidated subsidiaries. Certain specific policies Banking business segment.
include the following:
Service Charges Service charges include fees received on
Card Revenue Card revenue includes interchange from deposit accounts under depository agreements with
credit, debit and stored-value cards processed through customers to provide access to deposited funds, serve as
card association networks, annual fees, and other a custodian of funds, and when applicable, pay interest on
transaction and account management fees. Interchange deposits. Checking or savings accounts may contain fees
rates are generally set by the card associations and based for various services used on a day-to-day basis by a
on purchase volumes and other factors. The Company customer. Fees are recognized as services are delivered to
records interchange as services are provided. Transaction and consumed by the customer, or as fees are charged.
and account management fees are recognized as services Service charges also include revenue generated from ATM
are provided, except for annual fees which are recognized transaction processing and settlement services which is
over the applicable period. Costs for rewards programs recognized at the time the services are performed. Certain
and certain payments to partners and card associations are payments to partners and card associations related to ATM
also recorded within card revenue when services are processing services are also recorded within service

76 U.S. Bancorp 2024 Annual Report

charges as services are provided. Further, revenue Investment products fees are predominately reported within
generated from treasury management services are the Wealth, Corporate, Commercial and Institutional
included in service charges and include fees for a broad Banking business segment.
range of products and services that enable customers to
Other Noninterest Income Other noninterest income is
manage their cash more efficiently. These products and
primarily related to financial assets including income on
services include cash and investment management,
unconsolidated subsidiaries and equity method
receivables management, disbursement services, funds
investments, gains on sale of other investments and
transfer services, and information reporting. Treasury
corporate owned life insurance proceeds. The Company
management revenue is recognized as products and
reports other noninterest income across all business
services are provided to customers. The Company reflects
segments.
a discount calculated on monthly average collected
customer balances. Service charges are reported primarily
within the Wealth, Corporate, Commercial and Institutional
Other Significant Policies
Banking, and Consumer and Business Banking business Goodwill and Other Intangible Assets Goodwill is
segments. recorded on acquired businesses if the purchase price
exceeds the fair value of the net assets acquired. Goodwill
Commercial Products Revenue Commercial products
is not amortized but is subject, at a minimum, to annual
revenue primarily includes revenue related to ancillary
tests for impairment at a reporting unit level. In certain
services provided to Wealth, Corporate, Commercial and
situations, an interim impairment test may be required if
Institutional Banking, and Consumer and Business Banking
events occur or circumstances change that would more
customers, including underwriting fees, standby letter of
likely than not reduce the fair value of a reporting unit below
credit fees, non-yield related loan fees, loan and
its carrying amount. Determining the amount of goodwill
syndication fees, and revenue recognized on customer-
impairment, if any, includes assessing whether the carrying
related derivatives and sales of direct financing leases. The
value of a reporting unit exceeds its fair value. Other
Company charges underwriting fees when leading or
intangible assets are recorded at their fair value upon
participating with a group of underwriters in raising
completion of a business acquisition or certain other
investment capital on behalf of securities issuers. These
transactions, and include core deposits benefits and the
fees are recognized at securities issuance. The Company,
value of customer contracts or relationships. Other
in its role as lead underwriter, arranges deal structuring and
intangible assets are amortized over their estimated useful
use of outside vendors for the underwriting group. The
lives, using straight-line and accelerated methods and are
Company recognizes only those fees and expenses related
reviewed for impairment when indicators of impairment are
to its underwriting commitment. Sales of direct financing
present. Determining the amount of other intangible asset
leases are recognized at point of sale.
impairment, if any, includes assessing the present value of
Mortgage Banking Revenue Mortgage banking revenue the estimated future cash flows associated with the
includes revenue derived from mortgages originated and intangible asset and comparing it to the carrying amount of
subsequently sold, generally with servicing retained. The the asset.
primary components include: gains and losses on
Income Taxes Deferred taxes are recorded to reflect the
mortgage sales; servicing revenue; changes in fair value for
tax consequences on future years of differences between
mortgage loans originated with the intent to sell and
the tax basis of assets and liabilities and their financial
measured at fair value under the fair value option; changes
reporting carrying amounts. The Company uses the deferral
in fair value for derivative commitments to purchase and
method of accounting on investments that generate
originate mortgage loans; changes in the fair value of
investment tax credits. Under this method, the investment
MSRs; and the impact of risk management activities
tax credits are recognized as a reduction to the related
associated with the mortgage origination pipeline, funded
asset. For investments in qualified affordable housing
loans and MSRs. Net interest income from mortgage loans
projects and certain other tax-advantaged investments, the
is recorded in interest income. Refer to Other Significant
Company presents the expense in tax expense rather than
Policies in Note 1, as well as Note 9 and Note 21 for a
noninterest expense.
further discussion of MSRs. Mortgage banking revenue is
reported within the Consumer and Business Banking Mortgage Servicing Rights MSRs are capitalized as
business segment. separate assets when loans are sold and servicing is
retained or if they are purchased from others. MSRs are
Investment Products Fees Investment products fees
recorded at fair value. The Company determines the fair
include commissions related to the execution of requested
value by estimating the present value of the asset’s future
security trades, distribution fees from sale of mutual funds,
cash flows utilizing market-based prepayment rates, option
and investment advisory fees. Commissions and investment
adjusted spread, and other assumptions validated through
advisory fees are recognized as services are delivered to
comparison to trade information, industry surveys and
and utilized by the customer. Distribution fees are received
independent third-party valuations. Changes in the fair
over time, are dependent on the consumer maintaining their
value of MSRs are recorded in earnings as mortgage
mutual fund asset position and the value of such position.
banking revenue during the period in which they occur.
These revenues are estimated and recognized at the point
a significant reversal of revenue becomes remote.

77
Pensions For purposes of its pension plans, the Company internal-use software. Once the software is ready for its
utilizes its fiscal year-end as the measurement date. At the intended use, these costs are amortized on a straight-line
measurement date, plan assets are determined based on basis over the software’s expected useful life and reviewed
fair value, generally representing observable market prices for impairment on an ongoing basis. Estimated useful lives
or the net asset value provided by the funds’ trustee or are generally 3 to 5 years, but may range up to 7 years.
administrator. The actuarial cost method used to compute
Stock-Based Compensation The Company grants stock-
the pension liabilities and related expense is the projected
based awards, which may include restricted stock,
unit credit method. The projected benefit obligation is
restricted stock units and options to purchase common
principally determined based on the present value of
stock of the Company. Stock option grants are for a fixed
projected benefit distributions at an assumed discount rate.
number of shares to employees and directors with an
The discount rate utilized is based on the investment yield
exercise price equal to the fair value of the shares at the
of high quality corporate bonds available in the
date of grant. Restricted stock and restricted stock unit
marketplace with maturities equal to projected cash flows
grants are awarded at no cost to the recipient. Stock-based
of future benefit payments as of the measurement date.
compensation for awards is recognized in the Company’s
Periodic pension expense (or income) includes service
results of operations over the vesting period. The Company
costs, interest costs based on the assumed discount rate,
immediately recognizes compensation cost of awards to
the expected return on plan assets based on an actuarially
employees that meet retirement status, despite their
derived market-related value and amortization of actuarial
continued active employment. The amortization of stock-
gains and losses. Service cost is included in compensation
based compensation reflects estimated forfeitures adjusted
and employee benefits expense on the Consolidated
for actual forfeiture experience. As compensation expense
Statement of Income, with all other components of periodic
is recognized, a deferred tax asset is recorded that
pension expense included in other noninterest expense on
represents an estimate of the future tax deduction from
the Consolidated Statement of Income.
exercise or release of restrictions. At the time stock-based
Pension accounting reflects the long-term nature of
awards are exercised, cancelled, expire, or restrictions are
benefit obligations and the investment horizon of plan
released, the Company may be required to recognize an
assets, and can have the effect of reducing earnings
adjustment to tax expense, depending on the market price
volatility related to short-term changes in interest rates and
of the Company’s common stock at that time.
market valuations. Actuarial gains and losses include the
impact of plan amendments and various unrecognized Per Share Calculations Earnings per common share is
gains and losses which are deferred, and to the extent calculated using the two-class method under which
exceed 10 percent of the greater of the projected benefit earnings are allocated to common shareholders and
obligation or the market-related value of plan assets, are holders of participating securities. Unvested stock-based
amortized over the future service periods of active compensation awards that contain nonforfeitable rights to
employees or the remaining life expectancies of inactive dividends or dividend equivalents are considered
participants. The market-related value utilized to determine participating securities under the two-class method. Net
the expected return on plan assets is based on fair value income applicable to U.S. Bancorp common shareholders
adjusted for the difference between expected returns and is then divided by the weighted-average number of
actual performance of plan assets. The unrealized common shares outstanding to determine earnings per
difference between actual experience and expected common share. Diluted earnings per common share is
returns is included in expense over a period of calculated by adjusting income and outstanding shares,
approximately 15 years for active employees and assuming conversion of all potentially dilutive securities.
approximately 30 years for inactive participants. The
overfunded or underfunded status of each plan is recorded NOTE 2 Accounting Changes
as an asset or liability on the Consolidated Balance Sheet,
with changes in that status recognized through other Reference Interest Rate Transition In March 2020, the
comprehensive income (loss). Financial Accounting Standards Board (“FASB”) issued
Premises and Equipment Premises and equipment are accounting guidance to ease the financial reporting
stated at cost less accumulated depreciation and burdens related to the market transition from the London
depreciated primarily on a straight-line basis over the Interbank Offered Rate (“LIBOR”) and other interbank
estimated life of the assets. Estimated useful lives range up offered rates to alternative reference rates. The guidance
to 40 years for newly constructed buildings and from 3 to provided temporary optional expedients and exceptions to
25 years for furniture and equipment. the guidance in United States generally accepted
The Company, as lessee, records an ROU asset for accounting principles on contract modifications and hedge
each lease with an original term greater than 12 months. accounting. The guidance was effective upon issuance and
ROU assets are included in premises and equipment, with generally could be applied through December 31, 2024.
the corresponding lease liabilities included in long-term The adoption of this guidance was not material to the
debt and other liabilities. Company's financial statements.

Capitalized Software The Company capitalizes certain

costs associated with the acquisition or development of

78 U.S. Bancorp 2024 Annual Report

Income Taxes – Improvements to Income Tax
Disclosures In December 2023, the FASB issued
NOTE 3 Restrictions on Cash and Due
guidance, effective for the Company for annual reporting from Banks
periods beginning after December 15, 2024, related to
income tax disclosures. This guidance requires additional Banking regulators require bank subsidiaries to maintain
information in income tax rate reconciliation disclosures minimum average reserve balances, either in the form of
and additional disclosures about income taxes paid. The vault cash or reserve balances held with central banks or
guidance is required, at a minimum, to be adopted on a other financial institutions. The amount of required reserve
prospective basis, with an option to apply it retrospectively. balances were approximately $53 million at both
The Company expects the adoption of this guidance will December 31, 2024 and 2023. The Company held
not be material to its financial statements. balances at central banks and other financial institutions of
$48.4 billion and $49.5 billion at December 31, 2024 and
Segment Reporting – Improvements to Reportable 2023, respectively, to meet these requirements and for
Segment Disclosures Effective with the 2024 annual other purposes. These balances are included in cash and
reporting period, the Company adopted accounting due from banks on the Consolidated Balance Sheet.
guidance on a retrospective basis, issued by the FASB in
November 2023, related to segment disclosures. This
guidance requires disclosures of significant segment
expenses and other segment items and expands interim
period disclosure requirements to include segment profit or
loss and assets, which were previously only required to be
disclosed annually. The adoption of this guidance was not
material to the Company's financial statements.

79
 NOTE 4 Investment Securities
The Company’s held-to-maturity investment securities are value with unrealized net gains or losses reported within
carried at historical cost, adjusted for amortization of accumulated other comprehensive income (loss) in
premiums and accretion of discounts. The Company’s shareholders’ equity.
available-for-sale investment securities are carried at fair

The amortized cost, gross unrealized holding gains and losses, and fair value of held-to-maturity and available-for-sale
investment securities at December 31 were as follows:
2024 2023
Amortized Unrealized Unrealized Amortized Unrealized Unrealized
(Dollars in Millions) Cost Gains Losses Fair Value Cost Gains Losses Fair Value

Held-to-Maturity
U.S. Treasury and agencies $ 1,296 $ — $ (21) $ 1,275 $ 1,345 $ — $ (35) $ 1,310
Mortgage-backed securities
Residential agency 75,392 3 (12,317) 63,078 80,997 6 (9,929) 71,074
Commercial agency 1,702 — (27) 1,675 1,695 6 (5) 1,696
Other 244 3 — 247 8 — — 8
Total held-to-maturity $ 78,634 $ 6 $(12,365) $ 66,275 $ 84,045 $ 12 $ (9,969) $ 74,088
Available-for-Sale
U.S. Treasury and agencies $ 30,467 $ 1 $ (2,081) $ 28,387 $ 21,768 $ 8 $ (2,234) $ 19,542
Mortgage-backed securities
Residential agency 35,558 13 (2,290) 33,281 28,185 104 (2,211) 26,078
Commercial
Agency 8,673 — (1,322) 7,351 8,703 — (1,360) 7,343
Non-agency 7 — (1) 6 7 — (1) 6
Asset-backed securities 7,136 30 (1) 7,165 6,713 25 (14) 6,724
Obligations of state and political subdivisions 10,690 13 (1,151) 9,552 10,867 36 (914) 9,989
Other 249 1 — 250 24 — — 24
Total available-for-sale, excluding portfolio level
basis adjustments 92,780 58 (6,846) 85,992 76,267 173 (6,734) 69,706
(a)
Portfolio level basis adjustments 13 — (13) — 335 — (335) —
Total available-for-sale $ 92,793 $ 58 $ (6,859) $ 85,992 $ 76,602 $ 173 $ (7,069) $ 69,706
(a) Represents fair value hedge basis adjustments related to active portfolio layer method hedges of available-for-sale investment securities, which are not allocated to individual
securities in the portfolio. For additional information, refer to Note 19.

Investment securities with a fair value of $18.8 billion at counterparties have agreements granting the
December 31, 2024, and $20.5 billion at December 31, counterparties the right to sell or pledge the securities.
2023, were pledged to secure public, private and trust Investment securities securing these types of arrangements
deposits, repurchase agreements and for other purposes had a fair value of $320 million at December 31, 2024, and
required by contractual obligation or law. Included in these $338 million at December 31, 2023.
amounts were securities where the Company and certain

The following table provides information about the amount of interest income from taxable and non-taxable investment securities:

Year Ended December 31 (Dollars in Millions) 2024 2023 2022

Taxable $ 4,808 $ 4,171 $ 3,081
Non-taxable 303 314 297
Total interest income from investment securities $ 5,111 $ 4,485 $ 3,378

80 U.S. Bancorp 2024 Annual Report

The following table provides information about the amount of gross gains and losses realized through the sales of available-for-
sale investment securities:

Year Ended December 31 (Dollars in Millions) 2024 2023 2022

Realized gains $ 147 $ 74 $ 163
Realized losses (301) (219) (143)
Net realized gains (losses) $ (154) $ (145) $ 20
Income tax expense (benefit) on net realized gains (losses) $ (39) $ (37) $ 5

The Company conducts a regular assessment of its collateral, the existence of any government or agency
available-for-sale investment securities with unrealized guarantees, and market conditions. The Company
losses to determine whether all or some portion of a measures the allowance for credit losses using market
security’s unrealized loss is related to credit and an information where available and discounting the cash flows
allowance for credit losses is necessary. If the Company at the original effective rate of the investment security. The
intends to sell or it is more likely than not the Company will allowance for credit losses is adjusted each period through
be required to sell an investment security, the amortized earnings and can be subsequently recovered. The
cost of the security is written down to fair value. When allowance for credit losses on the Company’s available-for-
evaluating credit losses, the Company considers various sale investment securities was immaterial at December 31,
factors such as the nature of the investment security, the 2024 and December 31, 2023.
credit ratings or financial condition of the issuer, the extent
of the unrealized loss, expected cash flows of underlying

At December 31, 2024, certain investment securities had a fair value below amortized cost. The following table shows the gross
unrealized losses excluding portfolio level basis adjustments and fair value of the Company’s available-for-sale investment
securities with unrealized losses, aggregated by investment category and length of time the individual investment securities have
been in continuous unrealized loss positions, at December 31, 2024:
Less Than 12 Months 12 Months or Greater Total
Unrealized Unrealized Unrealized
(Dollars in Millions) Fair Value Losses Fair Value Losses Fair Value Losses
U.S. Treasury and agencies $ 9,236 $ (28) $ 16,978 $ (2,053) $ 26,214 $ (2,081)
Mortgage-backed securities
Residential agency 15,369 (275) 15,738 (2,015) 31,107 (2,290)
Commercial
Agency — — 7,351 (1,322) 7,351 (1,322)
Non-agency — — 7 (1) 7 (1)
Asset-backed securities 35 — 1,164 (1) 1,199 (1)
Obligations of state and political subdivisions 1,697 (21) 7,435 (1,130) 9,132 (1,151)
Other 2 — 4 — 6 —
Total investment securities $ 26,339 $ (324) $ 48,677 $ (6,522) $ 75,016 $ (6,846)

These unrealized losses primarily relate to changes in likely than not it would not be required to sell such
interest rates and market spreads subsequent to purchase investment securities before recovery of their amortized
of these available-for-sale investment securities. U.S. cost.
Treasury and agencies securities and agency mortgage- During the years ended December 31, 2024 and 2023,
backed securities are issued, guaranteed or otherwise the Company did not purchase any investment securities
supported by the United States government. The that had more-than-insignificant credit deterioration.
Company’s obligations of state and political subdivisions Predominantly all of the Company’s held-to-maturity
are generally high grade. Accordingly, the Company does investment securities are U.S. Treasury and agencies
not consider these unrealized losses to be credit-related securities and highly rated agency mortgage-backed
and an allowance for credit losses is not necessary. In securities that are guaranteed or otherwise supported by
general, the issuers of the investment securities are the United States government and have no history of credit
contractually prohibited from prepayment at less than par, losses. Accordingly the Company does not expect to incur
and the Company did not pay significant purchase any credit losses on held-to-maturity investment securities
premiums for these investment securities. At December 31, and has no allowance for credit losses recorded for these
2024, the Company had no plans to sell investment securities.
securities with unrealized losses, and believes it is more

81
The following table provides information about the amortized cost, fair value and yield by maturity date of the investment
securities outstanding at December 31, 2024:
Weighted-
Average Weighted-
Amortized Maturity in Average
(Dollars in Millions) Cost Fair Value Years Yield(e)

Held-to-Maturity
U.S. Treasury and agencies
Maturing in one year or less $ 650 $ 647 0.4 2.71 %
Maturing after one year through five years 646 628 2.3 3.00
Maturing after five years through ten years — — — —
Maturing after ten years — — — —
Total $ 1,296 $ 1,275 1.3 2.85 %
Mortgage-backed securities(a)
Maturing in one year or less $ 42 $ 41 0.8 4.52 %
Maturing after one year through five years 2,110 2,091 3.5 4.49
Maturing after five years through ten years 73,667 61,626 9.0 2.12
Maturing after ten years 1,275 995 10.1 2.18
Total $ 77,094 $ 64,753 8.8 2.19 %
Other
Maturing in one year or less $ 19 $ 16 0.2 3.24 %
Maturing after one year through five years 225 231 2.4 2.68
Maturing after five years through ten years — — — —
Maturing after ten years — — — —
Total $ 244 $ 247 2.2 2.73 %
Total held-to-maturity(b) $ 78,634 $ 66,275 8.7 2.20 %
Available-for-Sale
U.S. Treasury and agencies
Maturing in one year or less $ 11 $ 11 0.1 4.64 %
Maturing after one year through five years 14,070 13,335 3.2 2.63
Maturing after five years through ten years 15,629 14,476 6.5 3.35
Maturing after ten years 757 565 10.6 1.92
Total $ 30,467 $ 28,387 5.1 2.98 %
Mortgage-backed securities(a)
Maturing in one year or less $ 30 $ 29 0.6 2.02 %
Maturing after one year through five years 6,028 5,611 3.9 2.87
Maturing after five years through ten years 37,699 34,560 7.9 3.96
Maturing after ten years 481 438 11.0 4.76
Total $ 44,238 $ 40,638 7.4 3.82 %
Asset-backed securities (a)
Maturing in one year or less $ — $ — — —%
Maturing after one year through five years 3,668 3,684 1.7 4.90
Maturing after five years through ten years 3,468 3,481 5.9 6.26
Maturing after ten years — — — —
Total $ 7,136 $ 7,165 3.8 5.56 %
Obligations of state and political subdivisions(c)(d)
Maturing in one year or less $ 128 $ 128 0.4 5.53 %
Maturing after one year through five years 1,698 1,687 2.5 4.67
Maturing after five years through ten years 1,563 1,474 7.2 3.69
Maturing after ten years 7,301 6,263 14.9 3.47
Total $ 10,690 $ 9,552 11.7 3.72 %
Other
Maturing in one year or less $ 49 $ 49 0.7 4.66 %
Maturing after one year through five years 200 201 1.7 4.82
Maturing after five years through ten years — — — —
Maturing after ten years — — — —
Total $ 249 $ 250 1.5 4.79 %
Total available-for-sale(b)(f) $ 92,780 $ 85,992 6.8 3.67 %
(a) Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future
prepayments.
(b) The weighted-average maturity of total held-to-maturity investment securities was 8.7 years at December 31, 2023, with a corresponding weighted-average yield of 2.22 percent.
The weighted-average maturity of total available-for-sale investment securities was 6.3 years at December 31, 2023, with a corresponding weighted-average yield of 3.12 percent.
(c) Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to
maturity if the security is purchased at par or a discount.
(d) Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity
date for securities with a fair value equal to or below par.
(e) Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent. Yields
on investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at fair
value from available-for-sale to held-to maturity.
(f) Amortized cost excludes portfolio level basis adjustments of $13 million.

82 U.S. Bancorp 2024 Annual Report

 NOTE 5 Loans and Allowance for Credit Losses
The composition of the loan portfolio at December 31, by class and underlying specific portfolio type, was as follows:

(Dollars in Millions) 2024 2023

Commercial
Commercial $ 135,254 $ 127,676
Lease financing 4,230 4,205
Total commercial 139,484 131,881
Commercial Real Estate
Commercial mortgages 38,619 41,934
Construction and development 10,240 11,521
Total commercial real estate 48,859 53,455
Residential Mortgages
Residential mortgages 112,806 108,605
Home equity loans, first liens 6,007 6,925
Total residential mortgages 118,813 115,530
Credit Card 30,350 28,560
Other Retail
Retail leasing 4,040 4,135
Home equity and second mortgages 13,565 13,056
Revolving credit 3,747 3,668
Installment 14,373 13,889
Automobile 6,601 9,661
Total other retail 42,326 44,409
Total loans $ 379,832 $ 373,835

The Company had loans of $127.6 billion at on purchased loans amounted to $2.5 billion at
December 31, 2024, and $123.1 billion at December 31, December 31, 2024 and $2.7 billion at December 31, 2023.
2023, pledged at the Federal Home Loan Bank, and loans The Company evaluates purchased loans for more-than-
of $85.1 billion at December 31, 2024, and $82.8 billion at insignificant deterioration at the date of purchase in
December 31, 2023, pledged at the Federal Reserve Bank. accordance with applicable authoritative accounting
The Company offers a broad array of lending products guidance. Purchased loans that have experienced more-
to consumer and commercial customers, in various than-insignificant deterioration from origination are
industries, across several geographical locations, considered purchased credit deteriorated loans. All other
predominately in the states in which it has Consumer and purchased loans are considered non-purchased credit
Business Banking offices. Collateral for commercial and deteriorated loans.
commercial real estate loans may include marketable Allowance for Credit Losses The allowance for credit
securities, accounts receivable, inventory, equipment, real losses is established for current expected credit losses on
estate, or the related property. the Company’s loan and lease portfolio, including unfunded
Originated loans are reported at the principal amount credit commitments. The allowance considers expected
outstanding, net of unearned interest and deferred fees and losses for the remaining lives of the applicable assets,
costs, and any partial charge-offs recorded. Purchased inclusive of expected recoveries. The allowance for credit
loans are recorded at fair value at the date of purchase. Net losses is increased through provisions charged to earnings
unearned interest and deferred fees and costs on and reduced by net charge-offs.
originated loans and unamortized premiums and discounts

83
Activity in the allowance for credit losses by portfolio class was as follows:

Commercial Residential Credit Other Total

(Dollars in Millions) Commercial Real Estate Mortgages Card Retail Loans

Balance at December 31, 2023 $ 2,119 $ 1,620 $ 827 $ 2,403 $ 870 $ 7,839
Add
Provision for credit losses 608 53 (53) 1,464 166 2,238
Deduct
Loans charged-off 652 229 13 1,406 313 2,613
Less recoveries of loans charged-off (100) (64) (22) (179) (96) (461)
Net loan charge-offs (recoveries) 552 165 (9) 1,227 217 2,152
Balance at December 31, 2024 $ 2,175 $ 1,508 $ 783 $ 2,640 $ 819 $ 7,925
Balance at December 31, 2022 $ 2,163 $ 1,325 $ 926 $ 2,020 $ 970 $ 7,404
Add
Change in accounting principle(a) — — (31) (27) (4) (62)
(b)
Allowance for acquired credit losses — 127 — — — 127
Provision for credit losses 270 431 41 1,259 274 2,275
Deduct
Loans charged-off 389 281 129 1,014 478 2,291
Less recoveries of loans charged-off (75) (18) (20) (165) (108) (386)
Net loan charge-offs (recoveries) 314 263 109 849 370 1,905
Balance at December 31, 2023 $ 2,119 $ 1,620 $ 827 $ 2,403 $ 870 $ 7,839
Balance at December 31, 2021 $ 1,849 $ 1,123 $ 565 $ 1,673 $ 945 $ 6,155
Add
Allowance for acquired credit losses(b) 163 87 36 45 5 336
Provision for credit losses(c) 378 152 302 826 319 1,977
Deduct
Loans charged-off(d) 319 54 13 696 418 1,500
Less recoveries of loans charged-off (92) (17) (36) (172) (120) (437)
Net loan charge-offs (recoveries) 227 37 (23) 524 298 1,063
Other Changes — — — — (1) (1)
Balance at December 31, 2022 $ 2,163 $ 1,325 $ 926 $ 2,020 $ 970 $ 7,404
(a) Effective January 1, 2023, the Company adopted accounting guidance which removed the separate recognition and measurement of troubled debt restructurings.
(b) Represents allowance for credit deteriorated and charged-off loans acquired from MUB.
(c) Includes $662 million of provision for credit losses related to the acquisition of MUB.
(d) Includes $179 million of total charge-offs primarily on loans previously charged-off by MUB, which were written up upon acquisition to unpaid principal balance as required by
purchase accounting.

The increase in the allowance for credit losses from December 31, 2023 to December 31, 2024 was primarily driven by loan
portfolio growth.

84 U.S. Bancorp 2024 Annual Report

The following table provides a summary of loans charged-off by portfolio class and year of origination for the years ended
December 31:
Commercial Residential
(Dollars in Millions) Commercial Real Estate(a) Mortgages(b) Credit Card(c) Other Retail(d) Total Loans
2024
Originated in 2024 $ 30 $ 117 $ — $ — $ 13 $ 160
Originated in 2023 84 51 — — 47 182
Originated in 2022 178 55 3 — 52 288
Originated in 2021 32 1 — — 40 73
Originated in 2020 12 1 — — 21 34
Originated prior to 2020 41 4 10 — 35 90
Revolving 275 — — 1,406 105 1,786
Total charge-offs $ 652 $ 229 $ 13 $ 1,406 $ 313 $ 2,613
2023
Originated in 2023 $ 48 $ 63 $ — $ — $ 57 $ 168
Originated in 2022 63 88 1 — 130 282
Originated in 2021 30 69 6 — 83 188
Originated in 2020 17 2 8 — 38 65
Originated in 2019 15 3 16 — 31 65
Originated prior to 2019 53 56 98 — 31 238
Revolving 163 — — 1,014 80 1,257
Revolving converted to term — — — — 28 28
Total charge-offs $ 389 $ 281 $ 129 $ 1,014 $ 478 $ 2,291
Note: Year of origination is based on the origination date of a loan, or for existing loans the date when the maturity date, pricing or commitment amount is amended. Predominantly all
current year and near term loan origination years for gross charge-offs relate to existing loans that have had recent maturity date, pricing or commitment amount amendments.
(a) Includes $91 million of 2023 charge-offs related to uncollectible amounts on acquired loans.
(b) Includes $117 million of 2023 charge-offs related to balance sheet repositioning and capital management actions.
(c) Predominantly all credit card loans are considered revolving loans. Includes an immaterial amount of charge-offs related to revolving converted to term loans.
(d) Includes $192 million of 2023 charge-offs related to balance sheet repositioning and capital management actions.

85
Credit Quality The credit quality of the Company’s loan portfolios is assessed as a function of net credit losses, levels of
nonperforming assets and delinquencies, and credit quality ratings as defined by the Company. These credit quality ratings are
an important part of the Company’s overall credit risk management process and evaluation of the allowance for credit losses.

The following table provides a summary of loans by portfolio class, including the delinquency status of those that continue to
accrue interest, and those that are nonperforming:

Accruing
30-89 Days 90 Days or
(Dollars in Millions) Current Past Due More Past Due Nonperforming(b) Total

December 31, 2024

Commercial $ 138,362 $ 356 $ 96 $ 670 $ 139,484
Commercial real estate 47,948 78 9 824 48,859
Residential mortgages(a) 118,267 188 206 152 118,813
Credit card 29,487 428 435 — 30,350
Other retail 41,886 229 64 147 42,326
Total loans $ 375,950 $ 1,279 $ 810 $ 1,793 $ 379,832
December 31, 2023
Commercial $ 130,925 $ 464 $ 116 $ 376 $ 131,881
Commercial real estate 52,619 55 4 777 53,455
Residential mortgages(a) 115,067 169 136 158 115,530
Credit card 27,779 406 375 — 28,560
Other retail 43,926 278 67 138 44,409
Total loans $ 370,316 $ 1,372 $ 698 $ 1,449 $ 373,835
(a) At December 31, 2024, $660 million of loans 30–89 days past due and $2.3 billion of loans 90 days or more past due purchased and that could be purchased from GNMA
mortgage pools under delinquent loan repurchase options whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of
Veterans Affairs, were classified as current, compared with $595 million and $2.0 billion at December 31, 2023, respectively.
(b) Substantially all nonperforming loans at December 31, 2024 and 2023, had an associated allowance for credit losses. The Company recognized interest income on nonperforming
loans of $29 million and $22 million for the years ended December 31, 2024 and 2023, respectively, compared to what would have been recognized at the original contractual
terms of the loans of $66 million and $49 million, respectively.
related to mortgage loans whose payments are primarily
At December 31, 2024, total nonperforming assets held
insured by the Federal Housing Administration or
by the Company were $1.8 billion, compared with $1.5
guaranteed by the United States Department of Veterans
billion at December 31, 2023. Total nonperforming assets
Affairs. In addition, the amount of residential mortgage
included $1.8 billion of nonperforming loans, $21 million of
loans secured by residential real estate in the process of
OREO and $18 million of other nonperforming assets
foreclosure at December 31, 2024 and December 31, 2023,
owned by the Company at December 31, 2024, compared
was $576 million and $728 million, respectively, of which
with $1.4 billion, $26 million and $19 million, respectively, at
$354 million and $487 million, respectively, related to loans
December 31, 2023.
purchased and that could be purchased from GNMA
At December 31, 2024, the amount of foreclosed
mortgage pools under delinquent loan repurchase options
residential real estate held by the Company, and included
whose repayments are insured by the Federal Housing
in OREO, was $21 million, compared with $26 million at
Administration or guaranteed by the United States
December 31, 2023. These amounts excluded $46 million
Department of Veterans Affairs.
and $47 million at December 31, 2024 and December 31,
2023, respectively, of foreclosed residential real estate

86 U.S. Bancorp 2024 Annual Report

The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating:
December 31, 2024 December 31, 2023
Criticized Criticized
Special Total Special Total
(Dollars in Millions) Pass Mention Classified(a) Criticized Total Pass Mention Classified(a) Criticized Total
Commercial
Originated in 2024 $ 57,578 $ 503 $ 1,034 $ 1,537 $ 59,115 $ — $ — $ — $ — $ —
Originated in 2023 19,128 173 564 737 19,865 43,023 827 856 1,683 44,706
Originated in 2022 19,718 231 370 601 20,319 40,076 274 632 906 40,982
Originated in 2021 4,677 60 92 152 4,829 9,219 117 154 271 9,490
Originated in 2020 2,737 68 68 136 2,873 3,169 92 71 163 3,332
Originated prior to 2020 4,075 8 75 83 4,158 5,303 30 209 239 5,542
Revolving(b) 27,344 169 812 981 28,325 26,213 362 1,254 1,616 27,829
Total commercial 135,257 1,212 3,015 4,227 139,484 127,003 1,702 3,176 4,878 131,881
Commercial real estate
Originated in 2024 9,652 261 1,772 2,033 11,685 — — — — —
Originated in 2023 5,213 42 760 802 6,015 8,848 465 2,206 2,671 11,519
Originated in 2022 9,047 661 913 1,574 10,621 11,831 382 1,141 1,523 13,354
Originated in 2021 6,515 100 196 296 6,811 9,235 500 385 885 10,120
Originated in 2020 2,954 29 137 166 3,120 3,797 51 87 138 3,935
Originated prior to 2020 7,868 119 471 590 8,458 10,759 458 619 1,077 11,836
Revolving 2,078 — 68 68 2,146 2,613 6 70 76 2,689
Revolving converted to term 3 — — — 3 2 — — — 2
Total commercial real estate 43,330 1,212 4,317 5,529 48,859 47,085 1,862 4,508 6,370 53,455
Residential mortgages(c)
Originated in 2024 10,291 — — — 10,291 — — — — —
Originated in 2023 8,764 — 11 11 8,775 9,734 — 5 5 9,739
Originated in 2022 28,484 — 43 43 28,527 29,146 — 17 17 29,163
Originated in 2021 34,694 — 35 35 34,729 36,365 — 16 16 36,381
Originated in 2020 13,748 — 16 16 13,764 14,773 — 9 9 14,782
Originated prior to 2020 22,463 — 264 264 22,727 25,202 — 262 262 25,464
Revolving — — — — — 1 — — — 1
Total residential mortgages 118,444 — 369 369 118,813 115,221 — 309 309 115,530
Credit card(d) 29,915 — 435 435 30,350 28,185 — 375 375 28,560
Other retail
Originated in 2024 7,398 — 3 3 7,401 — — — — —
Originated in 2023 3,966 — 9 9 3,975 5,184 — 4 4 5,188
Originated in 2022 4,085 — 11 11 4,096 5,607 — 12 12 5,619
Originated in 2021 6,537 — 14 14 6,551 10,398 — 15 15 10,413
Originated in 2020 2,715 — 6 6 2,721 4,541 — 9 9 4,550
Originated prior to 2020 2,828 — 15 15 2,843 4,008 — 20 20 4,028
Revolving 13,846 — 120 120 13,966 13,720 — 104 104 13,824
Revolving converted to term 731 — 42 42 773 735 — 52 52 787
Total other retail 42,106 — 220 220 42,326 44,193 — 216 216 44,409
Total loans $ 369,052 $ 2,424 $ 8,356 $ 10,780 $ 379,832 $361,687 $ 3,564 $ 8,584 $ 12,148 $ 373,835
Total outstanding
commitments $ 778,155 $ 3,875 $ 10,441 $ 14,316 $ 792,471 $762,869 $ 5,053 $ 10,470 $ 15,523 $ 778,392
Note: Year of origination is based on the origination date of a loan, or for existing loans the date when the maturity date, pricing or commitment amount is amended. Predominantly all
current year and nearer term loan origination years for criticized loans relate to existing loans that have had recent maturity date, pricing or commitment amount amendments.
(a) Classified rating on consumer loans primarily based on delinquency status.
(b) Includes an immaterial amount of revolving converted to term loans.
(c) At December 31, 2024, $2.3 billion of GNMA loans 90 days or more past due and $1.4 billion of modified GNMA loans whose repayments are insured by the Federal Housing
Administration or guaranteed by the United States Department of Veterans Affairs were classified with a pass rating, compared with $2.0 billion and $1.2 billion at December 31,
2023, respectively.
(d) Predominately all credit card loans are considered revolving loans. Includes an immaterial amount of revolving converted to term loans.

87
Loan Modifications In certain circumstances, the Company may modify the terms of a loan to maximize the collection of
amounts due when a borrower is experiencing financial difficulties or is expected to experience difficulties in the near-term. The
following table provides a summary of period-end balances of loans modified during the periods presented, by portfolio class
and modification granted:

Interest Rate Multiple Total Percent of

Year Ended December 31 (Dollars in Millions) Reduction Payment Delay Term Extension Modifications(a) Modifications Class Total

2024
Commercial $ 77 $ 2 $ 526 $ — $ 605 .4 %
Commercial real estate 43 — 1,107 70 1,220 2.5
Residential mortgages(b) — 79 17 23 119 .1
Credit card 414 11 — — 425 1.4
Other retail 7 3 125 4 139 .3
Total loans, excluding loans purchased from
GNMA mortgage pools 541 95 1,775 97 2,508 .7
(b)
Loans purchased from GNMA mortgage pools 1 1,215 292 407 1,915 1.6
Total loans $ 542 $ 1,310 $ 2,067 $ 504 $ 4,423 1.2 %
2023
Commercial $ 46 $ — $ 286 $ 33 $ 365 .3 %
Commercial real estate — — 645 72 717 1.3
Residential mortgages(b) — 234 26 20 280 .2
Credit card 349 1 — — 350 1.2
Other retail 7 21 144 3 175 .4
Total loans, excluding loans purchased from
GNMA mortgage pools 402 256 1,101 128 1,887 .5
Loans purchased from GNMA mortgage pools(b) — 1,263 255 321 1,839 1.6
Total loans $ 402 $ 1,519 $ 1,356 $ 449 $ 3,726 1.0 %
(a) Includes $310 million of total loans receiving a payment delay and term extension, $155 million of total loans receiving an interest rate reduction and term extension and $39 million
of total loans receiving an interest rate reduction, payment delay and term extension for the year ended December 31, 2024, compared with $329 million, $112 million and $8 million
for the year ended December 31, 2023, respectively.
(b) Percent of class total amounts expressed as a percent of total residential mortgage loan balances.

Loan modifications included in the table above exclude December 31, 2024, the balance of loans modified in trial
trial period arrangements offered to customers and secured period arrangements was $189 million, while the balance of
loans to consumer borrowers that have had debt secured loans to consumer borrowers that have had debt
discharged through bankruptcy where the borrower has not discharged through bankruptcy was not material.
reaffirmed the debt during the periods presented. At

88 U.S. Bancorp 2024 Annual Report

The following table summarizes the effects of loan modifications made to borrowers on loans modified:
Weighted-Average Weighted-Average
Interest Rate Months of Term
Year Ended December 31 Reduction Extension

2024
Commercial(a) 20.3 % 11
Commercial real estate 3.2 13
Residential mortgages 1.1 90
Credit card 16.4 —
Other retail 7.7 5
Loans purchased from GNMA mortgage pools .6 110
2023
Commercial(a) 13.0 12
Commercial real estate 3.5 11
Residential mortgages 1.2 98
Credit card 15.4 —
Other retail 7.9 4
Loans purchased from GNMA mortgage pools .6 103
Note: The weighted-average payment deferral for all portfolio classes was less than $1 million for the years ended December 31, 2024 and 2023. Forbearance payments are required
to be paid at the end of the original term loan.
(a) The weighted-average interest rate reduction was primarily driven by commercial cards.

Loans that receive a forbearance plan generally remain receiving a term extension or modification. Therefore, loans
in default until they are no longer delinquent as the result of only receiving forbearance plans are not included in the
the payment of all past due amounts or the borrower table below.

The following table provides a summary of loan balances as of December 31, which were modified during the prior twelve
months, by portfolio class and delinquency status:
90 Days or
30-89 Days More Past
(Dollars in Millions) Current Past Due Due Total

2024
Commercial $ 395 $ 26 $ 167 $ 588
Commercial real estate 875 26 319 1,220
Residential mortgages(a) 1,469 4 6 1,479
Credit card 302 73 39 414
Other retail 112 19 6 137
Total loans $ 3,153 $ 148 $ 537 $ 3,838
2023
Commercial $ 255 $ 12 $ 98 $ 365
Commercial real estate 524 — 193 717
Residential mortgages(a) 1,385 24 16 1,425
Credit card 251 67 32 350
Other retail 133 21 8 162
Total loans $ 2,548 $ 124 $ 347 $ 3,019
(a) At December 31, 2024, $442 million of loans 30-89 days past due and $324 million of loans 90 days or more past due purchased and that could be purchased from GNMA
mortgage pools under delinquent loan repurchase options whose payments are insured by the Federal Housing Administration or guaranteed by the United States Department of
Veterans Affairs, were classified as current, compared with $372 million and $175 million at December 31, 2023, respectively.

89
The following table provides a summary of loans that defaulted (fully or partially charged-off or became 90 days or more past
due) that were modified within twelve months prior to default.

Interest Rate Multiple

Year Ended December 31 (Dollars in Millions) Reduction Payment Delay Term Extension Modifications(a)

2024
Commercial $ 30 $ — $ 45 $ —
Commercial real estate 43 — 137 —
Residential mortgages — 3 — 3
Credit card 128 — — —
Other retail 2 — 20 —
Total loans, excluding loans purchased from GNMA mortgage pools 203 3 202 3
Loans purchased from GNMA mortgage pools 1 168 78 89
Total loans $ 204 $ 171 $ 280 $ 92
(a) Includes $81 million of total loans receiving a payment delay and term extension, $8 million of total loans receiving an interest rate reduction and term extension and $3 million of
total loans receiving an interest rate reduction, payment delay and term extension.

The following table provides a summary of loans that defaulted (fully or partially charged-off or became 90 days or more past
due) that were modified on or after January 1, 2023, the date the Company adopted accounting guidance which removed the
separate recognition and measurement of troubled debt restructurings, through December 31, 2023:

Interest Rate Multiple

Year Ended December 31 (Dollars in Millions) Reduction Payment Delay Term Extension Modifications(a)

2023
Commercial $ 7 $ — $ — $ —
Commercial real estate — — 1 —
Residential mortgages — 8 2 1
Credit card 35 — — —
Other retail 1 1 11 —
Total loans, excluding loans purchased from GNMA mortgage pools 43 9 14 1
Loans purchased from GNMA mortgage pools — 67 30 37
Total loans $ 43 $ 76 $ 44 $ 38
(a) Represents loans receiving a payment delay and term extension.

As of December 31, 2024, the Company had $510 million of commitments to lend additional funds to borrowers whose terms
of their outstanding owed balances have been modified.

90 U.S. Bancorp 2024 Annual Report

 NOTE 6 Leases
The Company, as a lessor, originates retail and commercial dollar assets such as aircraft or lower cost items such as
leases either directly to the consumer or indirectly through office equipment.
dealer networks. Retail leases consist primarily of
automobiles, while commercial leases may include high

The components of the net investment in sales-type and direct financing leases, at December 31, were as follows:
(Dollars in Millions) 2024 2023
Lease receivables $ 7,328 $ 7,239
Unguaranteed residual values accruing to the lessor’s benefit 911 1,082
Total net investment in sales-type and direct financing leases $ 8,239 $ 8,321

The Company, as a lessor, recorded $775 million, $738 2024, 2023 and 2022, respectively, primarily consisting of
million and $764 million of revenue on its Consolidated interest income on sales-type and direct financing leases.
Statement of Income for the years ended December 31,

The contractual future lease payments to be received by the Company, at December 31, 2024, were as follows:
Sales-type and
Direct Financing Operating
(Dollars in Millions) Leases Leases

2025 $ 2,758 $ 143

2026 2,142 104
2027 1,804 77
2028 865 52
2029 269 32
Thereafter 335 54
Total lease payments 8,173 $ 462
Amounts representing interest (845)
Lease receivables $ 7,328

The Company, as lessee, leases certain assets for use respectively, compared with $1.4 billion of ROU assets and
in its operations. Leased assets primarily include retail $1.6 billion of lease liabilities at December 31, 2023,
branches, operations centers and other corporate respectively.
locations, and, to a lesser extent, office and computer Total costs incurred by the Company, as a lessee, were
equipment. For each lease with an original term greater $529 million, $496 million and $390 million for the years
than 12 months, the Company records a lease liability and ended December 31, 2024, 2023 and 2022, respectively,
a corresponding ROU asset. At December 31, 2024, the and principally related to contractual lease payments on
Company’s ROU assets included in premises and operating leases. The Company’s leases do not impose
equipment and lease liabilities included in long-term debt significant covenants or other restrictions on the Company.
and other liabilities, were $1.4 billion and $1.5 billion,

The following table presents amounts relevant to the Company’s assets leased for use in its operations for the years ended
December 31:
(Dollars in Millions) 2024 2023 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases $ 389 $ 409 $ 294
Operating cash flows from finance leases 7 7 4
Financing cash flows from finance leases 62 49 14
Right of use assets obtained in exchange for new operating lease liabilities 268 230 239
Right of use assets obtained in exchange for new finance lease liabilities 59 25 91

91
The following table presents the weighted-average remaining lease terms and discount rates of the Company’s assets leased for
use in its operations at December 31:
2024 2023
Weighted-average remaining lease term of operating leases (in years) 6.7 6.4
Weighted-average remaining lease term of finance leases (in years) 8.1 8.3
Weighted-average discount rate of operating leases 4.0 % 3.7 %
Weighted-average discount rate of finance leases 7.3 % 7.7 %

The contractual future lease obligations of the Company at December 31, 2024, were as follows:
Operating Finance
(Dollars in Millions) Leases Leases
2025 $ 324 $ 38
2026 291 37
2027 248 34
2028 195 26
2029 147 8
Thereafter 382 24
Total lease payments 1,587 167
Amounts representing interest (218) (18)
Lease liabilities $ 1,369 $ 149

NOTE 7 Accounting for Transfers and Servicing of Financial Assets and Variable
Interest Entities
The Company transfers financial assets in the normal asset-backed financing arrangements that are off-balance
course of business. The majority of the Company’s financial sheet.
asset transfers are residential mortgage loan sales primarily The Company previously provided financial support
to GSEs, transfers of tax-advantaged investments, primarily through the use of waivers of trust and investment
commercial loan sales through participation agreements, management fees associated with various unconsolidated
and other individual or portfolio loan and securities sales. In registered money market funds it manages. The Company
accordance with the accounting guidance for asset discontinued providing this support beginning in the third
transfers, the Company considers any ongoing involvement quarter of 2022 due to rising interest rates in 2022. The
with transferred assets in determining whether the assets Company provided $65 million of support to the funds
can be derecognized from the balance sheet. Guarantees during the year ended December 31, 2022.
provided to certain third parties in connection with the The Company is involved in various entities that are
transfer of assets are further discussed in Note 22. considered to be VIEs. The Company’s investments in VIEs
For loans sold under participation agreements, the are primarily related to investments promoting affordable
Company also considers whether the terms of the loan housing, community development and renewable energy
participation agreement meet the accounting definition of a sources. Some of these tax-advantaged investments
participating interest. With the exception of servicing and support the Company’s regulatory compliance with the
certain performance-based guarantees, the Company’s Community Reinvestment Act. The Company’s investments
continuing involvement with financial assets sold is minimal in these entities generate a return primarily through the
and generally limited to market customary representation realization of federal and state income tax credits, and
and warranty clauses. Any gain or loss on sale depends on other tax benefits, such as tax deductions from operating
the previous carrying amount of the transferred financial losses of the investments, over specified time periods.
assets, the consideration received, and any liabilities These tax credits are recognized as a reduction of tax
incurred in exchange for the transferred assets. Upon expense or, for investments qualifying as investment tax
transfer, any servicing assets and other interests that credits, as a reduction to the related investment asset. The
continue to be held by the Company are initially recognized Company recognized federal and state income tax credits
at fair value. For further information on MSRs, refer to Note related to its affordable housing and other tax-advantaged
9. On a limited basis, the Company may acquire and investments in tax expense of $585 million, $576 million and
package high-grade corporate bonds for select corporate $461 million for the years ended December 31, 2024, 2023
customers, in which the Company generally has no and 2022, respectively. The Company recognized $573
continuing involvement with these transactions. million, $582 million and $424 million of expenses related to
Additionally, the Company is an authorized GNMA issuer all of these investments for the years ended December 31,
and issues GNMA securities on a regular basis. The 2024, 2023 and 2022, respectively, which were primarily
Company has no other asset securitizations or similar included in tax expense.

92 U.S. Bancorp 2024 Annual Report

 The Company is not required to consolidate VIEs in The Company is required to consolidate VIEs in which it
which it has concluded it does not have a controlling has concluded it has a controlling financial interest. The
financial interest, and thus is not the primary beneficiary. In Company sponsors entities to which it transfers its interests
such cases, the Company does not have both the power to in tax-advantaged investments to third parties. At
direct the entities’ most significant activities and the December 31, 2024, approximately $6.4 billion of the
obligation to absorb losses or the right to receive benefits Company’s assets and $4.2 billion of its liabilities included
that could potentially be significant to the VIEs. on the Consolidated Balance Sheet were related to
The Company’s investments in these unconsolidated community development and tax-advantaged investment
VIEs are carried in other assets on the Consolidated VIEs which the Company has consolidated, primarily
Balance Sheet. The Company’s unfunded capital and other related to these transfers. These amounts compared to $6.1
commitments related to these unconsolidated VIEs are billion and $4.4 billion, respectively, at December 31, 2023.
generally carried in other liabilities on the Consolidated The majority of the assets of these consolidated VIEs are
Balance Sheet. The Company’s maximum exposure to loss reported in other assets, and the liabilities are reported in
from these unconsolidated VIEs include the investment long-term debt and other liabilities. The assets of a
recorded on the Company’s Consolidated Balance Sheet, particular VIE are the primary source of funds to settle its
net of unfunded capital commitments, and previously obligations. The creditors of the VIEs do not have recourse
recorded tax credits which remain subject to recapture by to the general credit of the Company. The Company’s
taxing authorities based on compliance features required to exposure to the consolidated VIEs is generally limited to the
be met at the project level. While the Company believes carrying value of its variable interests plus any related tax
potential losses from these investments are remote, the credits previously recognized or transferred to others with a
maximum exposure was determined by assuming a guarantee.
scenario where the community-based business and During 2024 the Company ended its previously
housing projects completely fail and do not meet certain sponsored municipal bond securities tender option bond
government compliance requirements resulting in program. The Company controlled the activities of the
recapture of the related tax credits. program’s entities and was entitled to the residual returns
and provided liquidity and remarketing arrangements to the
The following table provides a summary of investments in program. The Company had previously consolidated the
community development and tax-advantaged VIEs that the program’s entities, and at December 31, 2023, included
Company has not consolidated: $607 million of available-for-sale investment securities and
At December 31 (Dollars in Millions) 2024 2023 $381 million of short-term borrowings on the Consolidated
Investment carrying amount $ 8,107 $ 6,659 Balance Sheet related to this program.

Unfunded capital and other

commitments 5,032 3,619
Maximum exposure to loss 8,435 9,002

The Company also has noncontrolling financial

investments in private investment funds and partnerships
considered to be VIEs, which are not consolidated. The
Company’s recorded investment in these entities, carried in
other assets on the Consolidated Balance Sheet, was
approximately $264 million at December 31, 2024 and $219
million at December 31, 2023. The maximum exposure to
loss related to these VIEs was $382 million at December 31,
2024 and $319 million at December 31, 2023, representing
the Company’s investment balance and its unfunded
commitments to invest additional amounts.
The Company also held senior notes of $3.2 billion as
available-for-sale investment securities at December 31,
2024, compared with $5.3 billion at December 31, 2023.
These senior notes were issued by third-party securitization
vehicles that held $3.6 billion at December 31, 2024 and
$6.1 billion at December 31, 2023 of indirect auto loans that
collateralize the senior notes. These VIEs are not
consolidated by the Company.
The Company’s individual net investments in
unconsolidated VIEs, which exclude any unfunded capital
commitments, ranged from less than $1 million to $79
million at December 31, 2024, compared with less than $1
million to $86 million at December 31, 2023.

93
 NOTE 8 Premises and Equipment
Premises and equipment at December 31 consisted of the following:
(Dollars in Millions) 2024 2023
Land $ 498 $ 515
Buildings and improvements 3,121 3,239
Furniture, fixtures and equipment 3,010 3,013
Right of use assets on operating leases 1,114 1,149
Right of use assets on finance leases 314 275
Construction in progress 96 68
Total premises and equipment, gross 8,153 8,259
Less accumulated depreciation and amortization (4,588) (4,636)
Total premises and equipment, net $ 3,565 $ 3,623

NOTE 9 Mortgage Servicing Rights

The Company capitalizes MSRs as separate assets when from market rate and model assumption changes, net of the
loans are sold and servicing is retained. MSRs may also be value change in derivatives used to economically hedge
purchased from others. The Company carries MSRs at fair MSRs. These changes resulted in net losses of $2 million,
value, with changes in the fair value recorded in earnings $41 million and $45 million for the years ended
during the period in which they occur. The Company December 31, 2024, 2023 and 2022, respectively. Loan
serviced $216.6 billion of residential mortgage loans for servicing and ancillary fees, not including valuation
others at December 31, 2024, and $233.4 billion at changes, included in mortgage banking revenue were $699
December 31, 2023, including subserviced mortgages with million, $733 million and $754 million for the years ended
no corresponding MSR asset. Included in mortgage December 31, 2024, 2023 and 2022, respectively.
banking revenue are the MSR fair value changes arising

Changes in fair value of capitalized MSRs are summarized as follows:

(Dollars in Millions) 2024 2023 2022
Balance at beginning of period $ 3,377 $ 3,755 $ 2,953
Rights purchased 1 5 156
Rights capitalized 276 373 590
Rights sold (188) (440) (255)
Changes in fair value of MSRs
Due to fluctuations in market interest rates(a) 235 66 804
Due to revised assumptions or models(b) 43 12 (29)
Other changes in fair value(c) (375) (394) (464)
Balance at end of period $ 3,369 $ 3,377 $ 3,755
(a) Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits.
(b) Includes changes in MSR value not caused by changes in market interest rates, such as changes in assumed cost to service, ancillary income and option adjusted spread, as well
as the impact of any model changes.
(c) Primarily the change in MSR value from passage of time and cash flows realized (decay), but also includes the impact of changes to expected cash flows not associated with
changes in market interest rates, such as the impact of delinquencies.

The estimated sensitivity to changes in interest rates of the fair value of the MSR portfolio and the related derivative instruments
as of December 31 follows:
2024 2023
Down Down Down Up Up Up Down Down Down Up Up Up
(Dollars in Millions) 100 bps 50 bps 25 bps 25 bps 50 bps 100 bps 100 bps 50 bps 25 bps 25 bps 50 bps 100 bps
MSR portfolio $ (310) $ (144) $ (69) $ 63 $ 120 $ 217 $ (370) $ (173) $ (84) $ 77 $ 147 $ 268
Derivative instrument hedges 325 147 69 (61) (118) (220) 381 178 86 (79) (152) (289)
Net sensitivity $ 15 $ 3 $ — $ 2 $ 2 $ (3) $ 11 $ 5 $ 2 $ (2) $ (5) $ (21)

94 U.S. Bancorp 2024 Annual Report

 The fair value of MSRs and their sensitivity to changes in limited adjustable-rate or jumbo mortgage loans. The HFA
interest rates is influenced by the mix of the servicing servicing portfolio is comprised of loans originated under
portfolio and characteristics of each segment of the state and local housing authority program guidelines which
portfolio. The Company’s servicing portfolio consists of the assist purchases by first-time or low- to moderate-income
distinct portfolios of government-insured mortgages, homebuyers through a favorable rate subsidy, down
conventional mortgages and Housing Finance Agency payment and/or closing cost assistance on government-
(“HFA”) mortgages. The servicing portfolios are and conventional-insured mortgages.
predominantly comprised of fixed-rate agency loans with
A summary of the Company’s MSRs and related characteristics by portfolio as of December 31 follows:

2024 2023

(Dollars in Millions) HFA Government Conventional(d) Total HFA Government Conventional(d) Total
(a)
Servicing portfolio $52,807 $ 25,139 $ 138,428 $216,374 $48,286 $ 25,996 $ 151,056 $225,338
Fair value $ 856 $ 512 $ 2,001 $ 3,369 $ 769 $ 507 $ 2,101 $ 3,377
Value (bps)(b) 162 204 145 156 159 195 139 150
Weighted-average servicing fees
(bps) 35 45 25 30 36 44 26 30
Multiple (value/servicing fees) 4.57 4.56 5.69 5.17 4.45 4.41 5.41 5.00
Weighted-average note rate 4.92 % 4.35 % 3.87 % 4.18 % 4.56 % 4.23 % 3.81 % 4.02 %
Weighted-average age (in years) 4.5 6.1 5.0 5.0 4.3 5.5 4.3 4.4
Weighted-average expected
prepayment (constant
prepayment rate) 9.9 % 10.2 % 7.8 % 8.6 % 10.5 % 11.1 % 9.1 % 9.6 %
Weighted-average expected life
(in years) 7.5 6.8 7.4 7.4 7.2 6.5 7.0 7.0
Weighted-average option
adjusted spread(c) 5.8 % 6.2 % 5.6 % 5.7 % 5.4 % 5.9 % 4.6 % 4.9 %
(a) Represents principal balance of mortgages having corresponding MSR asset.
(b) Calculated as fair value divided by the servicing portfolio.
(c) Option adjusted spread is the incremental spread added to the risk-free rate to reflect optionality and other risk inherent in the MSRs.
(d) Represents loans sold primarily to GSEs.

NOTE 10 Intangible Assets

Intangible assets consisted of the following:

At December 31 (Dollars in Millions) 2024 2023

Goodwill $ 12,536 $ 12,489
Core deposit benefits 1,702 2,134
Mortgage servicing rights 3,369 3,377
Other identified intangibles 476 573
Total $ 18,083 $ 18,573

Aggregate amortization expense consisted of the following:

Year Ended December 31 (Dollars in Millions) 2024 2023 2022
Core deposit benefits $ 432 $ 481 $ 53
Other identified intangibles 137 155 162
Total $ 569 $ 636 $ 215

95
The estimated amortization expense for the next five years is as follows:
(Dollars in Millions)
2025 $ 489
2026 422
2027 353
2028 290
2029 223

The following table reflects the changes in the carrying value of goodwill for the years ended December 31, 2024, 2023 and
2022:
Wealth,
Corporate,
Commercial and Consumer and Treasury and
Institutional Business Payment Corporate Consolidated
(Dollars in Millions) Banking Banking Services Support Company
Balance at December 31, 2021 $ 3,673 $ 3,245 $ 3,344 $ — $ 10,262
Goodwill acquired 918 1,220 11 — 2,149
Foreign exchange translation and other (2) — (36) — (38)
Balance at December 31, 2022 $ 4,589 $ 4,465 $ 3,319 $ — $ 12,373
Goodwill acquired 235 (139) — — 96
Foreign exchange translation and other 1 — 19 — 20
Balance at December 31, 2023 $ 4,825 $ 4,326 $ 3,338 $ — $ 12,489
Goodwill acquired — — 80 — 80
Foreign exchange translation and other (2) — (31) — (33)
Balance at December 31, 2024 $ 4,823 $ 4,326 $ 3,387 $ — $ 12,536

NOTE 11 Deposits
The composition of deposits at December 31 was as follows:

(Dollars in Millions) 2024 2023

Noninterest-bearing deposits $ 84,158 $ 89,989
Interest-bearing deposits
Interest checking 127,188 127,453
Money market savings 206,805 199,378
Savings accounts 45,389 43,219
Time deposits 54,769 52,273
Total interest-bearing deposits 434,151 422,323
Total deposits $ 518,309 $ 512,312

The maturities of time deposits outstanding at December 31, 2024 were as follows:
(Dollars in Millions)
2025 $ 51,876
2026 2,045
2027 310
2028 149
2029 387
Thereafter 2
Total $ 54,769

96 U.S. Bancorp 2024 Annual Report

NOTE 12 Short-Term Borrowings
Short-term borrowings at December 31 consisted of the following:
(Dollars in Millions) 2024 2023
Federal funds purchased $ 252 $ 248
Securities sold under agreements to repurchase 7,642 3,576
Commercial paper 4,288 7,773
Other short-term borrowings 3,336 3,682
Total $ 15,518 $ 15,279

NOTE 13 Long-Term Debt

Long-term debt (debt with original maturities of more than one year) at December 31 consisted of the following:

(Dollars in Millions) Rate Type Rate(a) Maturity Date 2024 2023

U.S. Bancorp (Parent Company)

Subordinated notes Fixed 3.600 % 2024 $ — $ 1,000
Fixed 7.500 % 2026 199 199
Fixed 3.100 % 2026 1,000 1,000
Fixed 3.000 % 2029 1,000 1,000
Fixed 4.967 % 2033 1,300 1,300
Fixed 2.491 % 2036 1,300 1,300
Medium-term notes Fixed 1.375% - 6.787% 2025 - 2039 27,939 26,618
Floating 3.813 % 2028 519 —
Other(b) 2,000 1,915
Subtotal 35,257 34,332
Subsidiaries
Federal Home Loan Bank advances Fixed 1.860% - 8.250% 2025 - 2027 12,550 9,051
Floating 5.190% - 5.210% 2025 - 2026 3,000 3,000
Bank notes Fixed 2.050% - 5.550% 2025 - 2032 3,405 2,289
Floating —% - 4.588% 2027 - 2062 1,813 1,324
Other(c) 1,977 1,484
Subtotal 22,745 17,148
Total $ 58,002 $ 51,480

(a) Weighted-average interest rates of medium-term notes, Federal Home Loan Bank advances and bank notes were 4.40 percent, 4.63 percent and 3.08 percent, respectively.
(b) Includes $2.2 billion and $2.1 billion at December 31, 2024 and 2023, respectively, of discounted noninterest-bearing additional cash received by the Company upon close of its
2022 acquisition of MUB from Mitsubishi UFJ Financial Group ("MUFG") to be delivered to MUFG on or prior to December 1, 2027, discounted at the Company’s 5-year unsecured
borrowing rate as of the acquisition date, as well as debt issuance fees and unrealized gains and losses and deferred amounts relating to derivative instruments.
(c) Includes consolidated community development and tax-advantaged investment VIEs, finance lease obligations, debt issuance fees, and unrealized gains and losses and deferred
amounts relating to derivative instruments.

The Company has arrangements with the Federal Home Maturities of long-term debt outstanding at December 31,
Loan Bank and Federal Reserve Bank whereby the 2024, were:
Company could have borrowed an additional $171.2 billion Parent
and $215.8 billion at December 31, 2024 and 2023, (Dollars in Millions) Company Consolidated

respectively. 2025 $ 2,106 $ 8,199

2026 3,917 13,471
2027 4,757 10,045
2028 4,402 4,430
2029 4,472 4,480
Thereafter 15,603 17,377
Total $ 35,257 $ 58,002

97
NOTE 14 Shareholders' Equity
At December 31, 2024 and 2023, the Company had December 31, 2024 and 2023. The Company had 59 million
authority to issue 4 billion shares of common stock and 50 shares reserved for future issuances, primarily under its
million shares of preferred stock. The Company had 1.6 stock incentive plans at December 31, 2024.
billion shares of common stock outstanding at

The number of shares issued and outstanding and the carrying amount of each outstanding series of the Company’s preferred
stock at December 31 were as follows:
2024 2023
Shares Shares
Issued and Liquidation Carrying Issued and Liquidation Carrying
(Dollars in Millions) Outstanding Preference Discount Amount Outstanding Preference Discount Amount
Series A 12,510 $ 1,251 $ 145 $ 1,106 12,510 $ 1,251 $ 145 $ 1,106
Series B 40,000 1,000 — 1,000 40,000 1,000 — 1,000
Series J 40,000 1,000 7 993 40,000 1,000 7 993
Series K 23,000 575 10 565 23,000 575 10 565
Series L 20,000 500 14 486 20,000 500 14 486
Series M 30,000 750 21 729 30,000 750 21 729
Series N 60,000 1,500 8 1,492 60,000 1,500 8 1,492
Series O 18,000 450 13 437 18,000 450 13 437
Total preferred stock(a) 243,510 $ 7,026 $ 218 $ 6,808 243,510 $ 7,026 $ 218 $ 6,808
(a) The par value of all shares issued and outstanding at December 31, 2024 and 2023, was $1.00 per share.

During 2022, the Company issued depositary shares days following an official administrative or judicial decision,
representing an ownership interest in 18,000 shares of amendment to, or change in the laws or regulations that
Series O Non-Cumulative Perpetual Preferred Stock with a would not allow the Company to treat the full liquidation
liquidation preference of $25,000 per share (the “Series O value of the Series N Preferred Stock as Tier 1 capital for
Preferred Stock”). The Series O Preferred Stock has no purposes of the capital adequacy guidelines of the Federal
stated maturity and will not be subject to any sinking fund Reserve Board.
or other obligation of the Company. Dividends, if declared, During 2021, the Company issued depositary shares
will accrue and be payable quarterly, in arrears, at a rate representing an ownership interest in 30,000 shares of
per annum equal to 4.50 percent. The Series O Preferred Series M Non-Cumulative Perpetual Preferred Stock with a
Stock is redeemable at the Company’s option, in whole or liquidation preference of $25,000 per share (the “Series M
in part, on or after April 15, 2027. The Series O Preferred Preferred Stock”). The Series M Preferred Stock has no
Stock is redeemable at the Company’s option, in whole, but stated maturity and will not be subject to any sinking fund
not in part, prior to April 15, 2027 within 90 days following or other obligation of the Company. Dividends, if declared,
an official administrative or judicial decision, amendment to, will accrue and be payable quarterly, in arrears, at a rate
or change in the laws or regulations that would not allow the per annum equal to 4.00 percent. The Series M Preferred
Company to treat the full liquidation value of the Series O Stock is redeemable at the Company’s option, in whole or
Preferred Stock as Tier 1 capital for purposes of the capital in part, on or after April 15, 2026. The Series M Preferred
adequacy guidelines of the Federal Reserve Board. Stock is redeemable at the Company’s option, in whole, but
During 2021, the Company issued depositary shares not in part, prior to April 15, 2026 within 90 days following
representing an ownership interest in 60,000 shares of an official administrative or judicial decision, amendment to,
Series N Fixed Rate Reset Non-Cumulative Perpetual or change in the laws or regulations that would not allow the
Preferred Stock with a liquidation preference of $25,000 per Company to treat the full liquidation value of the Series M
share (the “Series N Preferred Stock”). The Series N Preferred Stock as Tier 1 capital for purposes of the capital
Preferred Stock has no stated maturity and will not be adequacy guidelines of the Federal Reserve Board.
subject to any sinking fund or other obligation of the During 2020, the Company issued depositary shares
Company. Dividends, if declared, will accrue and be representing an ownership interest in 20,000 shares of
payable quarterly, in arrears, at a rate per annum equal to Series L Non-Cumulative Perpetual Preferred Stock with a
3.70 percent from the date of issuance to, but excluding, liquidation preference of $25,000 per share (the “Series L
January 15, 2027, and thereafter will accrue and be Preferred Stock”). The Series L Preferred Stock has no
payable quarterly at a floating rate per annum equal to the stated maturity and will not be subject to any sinking fund
five-year treasury rate plus 2.541 percent. The Series N or other obligation of the Company. Dividends, if declared,
Preferred Stock is redeemable at the Company’s option, in will accrue and be payable quarterly, in arrears, at a rate
whole or in part, on or after January 15, 2027. The Series N per annum equal to 3.75 percent. The Series L Preferred
Preferred Stock is redeemable at the Company’s option, in Stock is redeemable at the Company’s option, in whole or
whole, but not in part, prior to January 15, 2027 within 90 in part, on or after January 15, 2026. The Series L Preferred

98 U.S. Bancorp 2024 Annual Report

Stock is redeemable at the Company’s option, in whole, but Series A Preferred Stock to USB Capital IX, thereby settling
not in part, prior to January 15, 2026 within 90 days the stock purchase contract established between the
following an official administrative or judicial decision, Company and USB Capital IX as part of the 2006 issuance
amendment to, or change in the laws or regulations that of USB Capital IX Income Trust Securities. The preferred
would not allow the Company to treat the full liquidation shares were issued to USB Capital IX for the purchase
value of the Series L Preferred Stock as Tier 1 capital for price specified in the stock forward purchase contract. The
purposes of the capital adequacy guidelines of the Federal Series A Preferred Stock has a liquidation preference of
Reserve Board. $100,000 per share, no stated maturity and will not be
During 2018, the Company issued depositary shares subject to any sinking fund or other obligation of the
representing an ownership interest in 23,000 shares of Company. Dividends, if declared, will accrue and be
Series K Non-Cumulative Perpetual Preferred Stock with a payable quarterly, in arrears, at a rate per annum equal to
liquidation preference of $25,000 per share (the “Series K the greater of 1.02 percent above three-month CME Term
Preferred Stock”). The Series K Preferred Stock has no SOFR plus a credit spread adjustment of 0.26161 percent,
stated maturity and will not be subject to any sinking fund or 3.50 percent. The Series A Preferred Stock is
or other obligation of the Company. Dividends, if declared, redeemable at the Company’s option, subject to prior
will accrue and be payable quarterly, in arrears, at a rate approval by the Federal Reserve Board.
per annum equal to 5.50 percent. The Series K Preferred During 2006, the Company issued depositary shares
Stock is redeemable at the Company’s option, in whole or representing an ownership interest in 40,000 shares of
in part. Series B Non-Cumulative Perpetual Preferred Stock with a
During 2017, the Company issued depositary shares liquidation preference of $25,000 per share (the “Series B
representing an ownership interest in 40,000 shares of Preferred Stock”). The Series B Preferred Stock has no
Series J Non-Cumulative Perpetual Preferred Stock with a stated maturity and will not be subject to any sinking fund
liquidation preference of $25,000 per share (the “Series J or other obligation of the Company. Dividends, if declared,
Preferred Stock”). The Series J Preferred Stock has no will accrue and be payable quarterly, in arrears, at a rate
stated maturity and will not be subject to any sinking fund per annum equal to the greater of 0.60 percent above
or other obligation of the Company. Dividends, if declared, three-month CME Term SOFR plus a credit spread
will accrue and be payable semiannually, in arrears, at a adjustment of 0.26161 percent, or 3.50 percent. The Series
rate per annum equal to 5.30 percent from the date of B Preferred Stock is redeemable at the Company’s option,
issuance to, but excluding, April 15, 2027, and thereafter subject to the prior approval of the Federal Reserve Board.
will accrue and be payable quarterly at a floating rate per During 2024, 2023 and 2022, the Company repurchased
annum equal to 2.914 percent above the three-month CME shares of its common stock under various authorizations
Term Secured Overnight Financing Rate (“SOFR”) plus a approved by its Board of Directors. As of December 31,
credit spread adjustment of 0.26161 percent. The Series J 2024, the approximate dollar value of shares that may yet
Preferred Stock is redeemable at the Company’s option, in be purchased by the Company under the current Board of
whole or in part, on or after April 15, 2027. The Series J Directors approved authorization was $4.9 billion. Share
Preferred Stock is redeemable at the Company’s option, in repurchases are subject to the approval of the Company's
whole, but not in part, prior to April 15, 2027 within 90 days Board of Directors and compliance with regulatory
following an official administrative or judicial decision, requirements.
amendment to, or change in the laws or regulations that
would not allow the Company to treat the full liquidation The following table summarizes the Company’s common
value of the Series J Preferred Stock as Tier 1 capital for stock repurchased in each of the last three years:
purposes of the capital adequacy guidelines of the Federal
Reserve Board. (Dollars and Shares in Millions) Shares Value
During 2010, the Company issued depositary shares 2024 4 $ 173
representing an ownership interest in 5,746 shares of
2023 1 62
Series A Non-Cumulative Perpetual Preferred Stock (the
“Series A Preferred Stock”) to investors, in exchange for 2022 1 69
their portion of USB Capital IX Income Trust Securities.
During 2011, the Company issued depositary shares
representing an ownership interest in 6,764 shares of

99
Shareholders’ equity is affected by transactions and valuations of asset and liability positions that require adjustments to
accumulated other comprehensive income (loss). The reconciliation of the transactions affecting accumulated other
comprehensive income (loss) included in shareholders’ equity for the years ended December 31, is as follows:

Unrealized
Gains
(Losses) on
Investment
Securities
Unrealized Transferred
Gains From
(Losses) on Unrealized Unrealized
Investment Available- Gains Gains
Securities For-Sale to (Losses) on (Losses) on Debit Foreign
Available- Held-To- Derivative Retirement Valuation Currency
(Dollars in Millions) For-Sale Maturity Hedges Plans Adjustments Translation Total

2024
Balance at beginning of period $ (5,151) $ (3,537) $ (242) $ (1,138) $ — $ (28) $ (10,096)
Changes in unrealized gains (losses) (60) — (676) 245 1 — (490)
Foreign currency translation adjustment(a) — — — — — 18 18
Reclassification to earnings of realized (gains) losses 154 499 258 (1) — — 910
Applicable income taxes (21) (127) 107 (61) — (4) (106)
Balance at end of period $ (5,078) $ (3,165) $ (553) $ (955) $ 1 $ (14) $ (9,764)
2023
Balance at beginning of period $ (6,378) $ (3,933) $ (114) $ (939) $ — $ (43) $ (11,407)
Changes in unrealized gains (losses) 1,500 — (252) (262) — — 986
Foreign currency translation adjustment(a) — — — — — 21 21
Reclassification to earnings of realized (gains) losses 145 530 80 (7) — — 748
Applicable income taxes (418) (134) 44 70 — (6) (444)
Balance at end of period $ (5,151) $ (3,537) $ (242) $ (1,138) $ — $ (28) $ (10,096)
2022
Balance at beginning of period $ 540 $ (935) $ (85) $ (1,426) $ — $ (37) $ (1,943)
Changes in unrealized gains and losses (13,656) — (75) 526 — — (13,205)
Transfer of securities from available-for-sale to held-to-
maturity 4,413 (4,413) — — — — —
(a)
Foreign currency translation adjustment — — — — — (10) (10)
Reclassification to earnings of realized (gains) losses (20) 400 36 128 — — 544
Applicable income taxes 2,345 1,015 10 (167) — 4 3,207
Balance at end of period $ (6,378) $ (3,933) $ (114) $ (939) $ — $ (43) $ (11,407)
(a) Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges.

100 U.S. Bancorp 2024 Annual Report

Additional detail about the impact to net income for items reclassified out of accumulated other comprehensive income (loss)
and into earnings for the years ended December 31 is as follows:

Impact to Net Income

Affected Line Item in the
(Dollars in Millions) 2024 2023 2022 Consolidated Statement of Income
Unrealized gains (losses) on investment securities available-for-sale
Realized gains (losses) on sales of investment securities $ (154) $ (145) $ 20 Securities gains (losses), net
39 37 (5) Applicable income taxes
(115) (108) 15 Net-of-tax
Unrealized gains (losses) on investment securities transferred from
available-for-sale to held-to-maturity
Amortization of unrealized gains (losses) (499) (530) (400) Interest income
127 134 119 Applicable income taxes
(372) (396) (281) Net-of-tax
Unrealized gains (losses) on derivative hedges
Realized gains (losses) on derivative hedges (258) (80) (36) Net interest income
66 21 9 Applicable income taxes
(192) (59) (27) Net-of-tax
Unrealized gains (losses) on retirement plans
Actuarial gains (losses) and prior service cost (credit) amortization 1 7 (128) Other noninterest expense
— (2) 33 Applicable income taxes
1 5 (95) Net-of-tax
Total impact to net income $ (678) $ (558) $ (388)

Regulatory Capital The Company uses certain measures commitments, letters of credit, and derivative contracts.
defined by bank regulatory agencies to assess its capital. Beginning in 2022, the Company began to phase into its
The regulatory capital requirements effective for the regulatory capital requirements the cumulative deferred
Company follow Basel III, with the Company being subject impact of its 2020 adoption of the accounting guidance
to calculating its capital adequacy as a percentage of risk- related to the impairment of financial instruments based on
weighted assets under the standardized approach. the CECL methodology plus 25 percent of its quarterly
Tier 1 capital is considered core capital and includes credit reserve increases during 2020 and 2021. This
common shareholders’ equity adjusted for the aggregate cumulative deferred impact was phased into the
impact of certain items included in other comprehensive Company’s regulatory capital during 2022 through 2024,
income (loss) (“common equity tier 1 capital”), plus culminating with a fully phased in regulatory capital
qualifying preferred stock, trust preferred securities and calculation beginning in 2025.
noncontrolling interests in consolidated subsidiaries subject The Company is also subject to leverage ratio
to certain limitations. Total risk-based capital includes Tier 1 requirements, which is defined as Tier 1 capital as a
capital and other items such as subordinated debt and the percentage of adjusted average assets under the
allowance for credit losses. Capital measures are stated as standardized approach and Tier 1 capital as a percentage
a percentage of risk-weighted assets, which are measured of total on- and off-balance sheet leverage exposure under
based on their perceived credit risks and include certain more risk-sensitive advanced approaches.
off-balance sheet exposures, such as unfunded loan

101
The following table provides a summary of the regulatory capital requirements in effect, along with the actual components and
ratios for the Company and its bank subsidiaries:
U.S. Bancorp U.S. Bank National Association
At December 31 (Dollars in Millions) 2024 2023 2024 2023

Basel III Standardized Approach:

Common equity tier 1 capital $ 47,877 $ 44,947 $ 59,866 $ 58,194
Tier 1 capital 55,129 52,199 60,311 58,638
Total risk-based capital 64,375 61,921 69,947 68,817
Risk-weighted assets 450,498 453,390 443,426 445,829
Common equity tier 1 capital as a percent of risk-weighted assets 10.6 % 9.9 % 13.5 % 13.1 %
Tier 1 capital as a percent of risk-weighted assets 12.2 11.5 13.6 13.2
Total risk-based capital as a percent of risk-weighted assets 14.3 13.7 15.8 15.4
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) 8.3 8.1 9.3 9.2
Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure
(total leverage exposure ratio) 6.8 6.6 7.6 7.5

U.S. Bancorp U.S. Bank National Association

Well- Well-
(a)
December 31, 2024 Minimum Capitalized Minimum(a) Capitalized

Bank Regulatory Capital Requirements

Common equity tier 1 capital as a percent of risk-weighted assets 7.6 % 6.5 % 7.0 % 6.5 %
Tier 1 capital as a percent of risk-weighted assets 9.1 8.0 8.5 8.0
Total risk-based capital as a percent of risk-weighted assets 11.1 10.0 10.5 10.0
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) 4.0 5.0 4.0 5.0
Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure
(total leverage exposure ratio)(b) 3.0 3.0 3.0
(a) The minimum common equity tier 1 capital, tier 1 capital and total risk-based capital ratio requirements reflect a capital conservation buffer. Banks and financial services holding
companies must maintain minimum capital levels, including a capital conservation buffer, to avoid limitations on capital distributions and certain discretionary compensation
payments. At December 31, 2024, U.S. Bancorp had a capital conservation buffer requirement of 3.1 percent, resulting from the Federal Reserve’s stress capital buffer requirement
determined during its 2024 stress testing process, while U.S. Bank National Association had a capital conservation buffer requirement of 2.5 percent. U.S. Bancorp and U.S. Bank
National Association were both subject to a capital conservation buffer requirement of 2.5 percent at December 31, 2023.
(b) A minimum "well-capitalized" threshold does not apply to U.S. Bancorp for this ratio as it is not formally defined under applicable banking regulations for bank holding companies.

Noncontrolling interests principally represent third-party The Series A Preferred Securities will be redeemable, in
investors’ interests in consolidated entities, including whole or in part, at the option of USB Realty Corp. on each
preferred stock of consolidated subsidiaries. During 2006, fifth anniversary after the dividend payment date occurring
the Company’s banking subsidiary formed USB Realty in January 2012. Any redemption will be subject to the
Corp., a real estate investment trust, for the purpose of approval of the Office of the Comptroller of the Currency
issuing 5,000 shares of Fixed-to-Floating Rate (“OCC”). During 2016, the Company purchased 500 shares
Exchangeable Non-cumulative Perpetual Series A Preferred of the Series A Preferred Securities held by third-party
Stock with a liquidation preference of $100,000 per share investors. As of December 31, 2024, 4,500 shares of the
(“Series A Preferred Securities”) to third-party investors. Series A Preferred Securities remain outstanding.
Dividends on the Series A Preferred Securities, if declared,
will accrue and be payable quarterly, in arrears, at a rate
per annum equal to 1.147 percent above three-month CME
Term SOFR plus a credit spread adjustment of 0.26161
percent. If USB Realty Corp. has not declared a dividend
on the Series A Preferred Securities before the dividend
payment date for any dividend period, such dividend shall
not be cumulative and shall cease to accrue and be
payable, and USB Realty Corp. will have no obligation to
pay dividends accrued for such dividend period, whether
or not dividends on the Series A Preferred Securities are
declared for any future dividend period.

102 U.S. Bancorp 2024 Annual Report

NOTE 15 Earnings Per Share
The components of earnings per share were:
Year Ended December 31
(Dollars and Shares in Millions, Except Per Share Data) 2024 2023 2022
Net income attributable to U.S. Bancorp $ 6,299 $ 5,429 $ 5,825
Preferred dividends (352) (350) (296)
Earnings allocated to participating stock awards (38) (28) (28)
Net income applicable to U.S. Bancorp common shareholders $ 5,909 $ 5,051 $ 5,501
Average common shares outstanding 1,560 1,543 1,489
Net effect of the exercise and assumed purchase of stock awards 1 — 1
Average diluted common shares outstanding 1,561 1,543 1,490
Earnings per common share $ 3.79 $ 3.27 $ 3.69
Diluted earnings per common share $ 3.79 $ 3.27 $ 3.69

Options outstanding at December 31, 2024, 2023 and 2022, to purchase 1 million, 3 million and 1 million common shares,
respectively, were not included in the computation of diluted earnings per share for the years ended December 31, 2024, 2023
and 2022, because they were antidilutive.

NOTE 16 Employee Benefits

Employee Retirement Savings Plan The Company has a pay multiplied by a percentage determined by their age
defined contribution retirement savings plan that covers and/or years of service, as defined by the plan documents.
substantially all its employees. Qualified employees are Participants also receive an annual interest credit.
allowed to contribute up to 75 percent of their annual Generally, employees become vested upon completing
compensation, subject to Internal Revenue Service limits, three years of vesting service. The Company did not
through salary deductions under Section 401(k) of the contribute to its qualified pension plans in 2024 and 2023
Internal Revenue Code. Employee contributions are and does not expect to contribute to the plans in 2025.
invested at their direction among a variety of investment The Company also maintains two non-qualified plans
alternatives. Employee contributions are 100 percent that are unfunded and provide benefits to certain
matched by the Company, up to four percent of each employees. The assumptions used in computing the
employee’s eligible annual compensation. The Company’s accumulated benefit obligation, the projected benefit
matching contribution vests immediately and is invested in obligation and net pension expense are substantially
the same manner as each employee’s future contribution consistent with those assumptions used for the funded
elections. Total expense for the Company’s matching qualified plans. In 2025, the Company expects to contribute
contributions was $262 million, $254 million and $211 approximately $49 million to its non-qualified pension plans,
million in 2024, 2023 and 2022, respectively. which equals the 2025 expected benefit payments.

Pension and Postretirement Welfare Plans The Company Postretirement Welfare Plans In addition to providing
has tax qualified noncontributory defined benefit pension pension benefits, the Company has a funded
plans, nonqualified pension plans and postretirement postretirement welfare plan available to certain eligible
welfare plans. participants based on their hire or retirement date. The plan
is closed to new participants. In 2025, the Company does
Pension Plans The funded tax qualified noncontributory
not expect to contribute to its postretirement welfare plan.
defined benefit pension plans provide benefits to
substantially all the Company’s employees. Participants
receive annual cash balance pay credits based on eligible

103
The following table summarizes the changes in benefit obligations and plan assets for the years ended December 31, and the
funded status and amounts recognized in the Consolidated Balance Sheet at December 31 for the pension plans:
(Dollars in Millions) 2024 2023
(a)
Change In Projected Benefit Obligation
Benefit obligation at beginning of measurement period $ 7,278 $ 6,617
Service cost 219 223
Interest cost 376 370
Plan amendments — (23)
Actuarial (gain) loss (443) 398
Lump sum settlements (118) (94)
Benefit payments (243) (213)
Benefit obligation at end of measurement period(b) $ 7,069 $ 7,278
Change In Fair Value Of Plan Assets
Fair value at beginning of measurement period $ 7,779 $ 7,375
Actual return on plan assets 381 658
Employer contributions 35 28
Lump sum settlements (118) (94)
Benefit payments (243) (213)
Acquisitions(c) — 25
Fair value at end of measurement period $ 7,834 $ 7,779
Funded Status $ 765 $ 501
Components Of The Consolidated Balance Sheet
Noncurrent benefit asset $ 1,329 $ 1,072
Current benefit liability (48) (26)
Noncurrent benefit liability (516) (545)
Recognized amount $ 765 $ 501
Accumulated Other Comprehensive Income (Loss), Pretax
Net actuarial loss $ (1,359) $ (1,607)
Net prior service credit 30 34
Recognized amount $ (1,329) $ (1,573)
Note: At December 31, 2024 and 2023, the postretirement welfare plans projected benefit obligation was $41 million and $49 million, respectively, the fair value of plan assets was
$47 million and $45 million, respectively, and the amount recognized in accumulated other comprehensive income (loss), pretax was $51 million and $52 million, respectively.
(a) The decrease in the projected benefit obligation for 2024 was primarily due to a higher discount rate and the increase for 2023 was primarily due to a lower discount rate.
(b) At December 31, 2024 and 2023, the accumulated benefit obligation for all pension plans was $6.6 billion and $6.8 billion, respectively.
(c) The increase in 2023 plan assets was related to the 2022 MUB acquisition.

The following table provides information for pension plans with benefit obligations in excess of plan assets at December 31:
(Dollars in Millions) 2024 2023

Plans with Projected Benefit Obligations in Excess of Plan Assets

Projected benefit obligation $ 564 $ 571
Fair value of plan assets — —
Plans with Accumulated Benefit Obligations in Excess of Plan Assets
Accumulated benefit obligation $ 525 $ 530
Fair value of plan assets — —

104 U.S. Bancorp 2024 Annual Report

The following table sets forth the components of net periodic pension cost and other amounts recognized in accumulated other
comprehensive income (loss) for the years ended December 31 for the pension plans:
(Dollars in Millions) 2024 2023 2022

Components Of Net Periodic Pension Cost

Service cost $ 219 $ 223 $ 280
Interest cost 376 370 248
Expected return on plan assets (585) (546) (481)
Prior service credit amortization (4) (1) (2)
Actuarial loss amortization 9 5 140
Net periodic pension cost $ 15 $ 51 $ 185
Other Changes In Plan Assets And Benefit Obligations Recognized In Other
Comprehensive Income (Loss)
Net actuarial (loss) gain arising during the year $ 239 $ (286) $ 523
Net actuarial loss amortized during the year 9 5 140
Net prior service credit (cost) arising during the year — 23 (2)
Net prior service credit amortized during the year (4) (1) (2)
Total recognized in other comprehensive income (loss) $ 244 $ (259) $ 659
Total recognized in net periodic pension cost and other comprehensive income (loss) $ 229 $ (310) $ 474
Note: The net periodic benefit for the postretirement welfare plans was $7 million, $10 million and $9 million for the years end December 31, 2024, 2023 and 2022, respectively. The
total of other amounts recognized as other comprehensive loss was $1 million, $10 million and $5 million for the years ended December 31, 2024, 2023 and 2022, respectively.

The following table sets forth weighted-average assumptions used to determine the pension plans projected benefit obligations
at December 31:
2024 2023
Discount rate 5.77 % 5.12 %
Cash balance interest crediting rate 3.71 3.04
(a)
Rate of compensation increase 3.52 3.72
(a) Determined on an active liability-weighted basis.

The following table sets forth weighted-average assumptions used to determine net periodic pension cost for the years ended
December 31:
2024 2023 2022
Discount rate 5.12 % 5.55 % 3.00 %
Cash balance interest crediting rate 3.04 3.36 3.00
(a)
Expected return on plan assets 7.00 6.75 6.50
Rate of compensation increase(b) 3.72 4.13 3.56
(a) With the help of an independent pension consultant, the Company considers several sources when developing its expected long-term rates of return on plan assets assumptions,
including, but not limited to, past returns and estimates of future returns given the plans' asset allocation, economic conditions, and peer group long-term rate of return information.
The Company determines its expected long-term rates of return reflecting current economic conditions and plan assets.
(b) Determined on an active liability-weighted basis.

105
Investment Policies and Asset Allocation In establishing subject to higher volatility. In an effort to minimize volatility,
its investment policies and asset allocation strategies, the while recognizing the long-term up-side potential of
Company considers expected returns and the volatility investing in equities, the Company’s Compensation and
associated with different strategies. An independent Human Resources Committee has determined that a target
consultant performs modeling that projects numerous asset allocation of 35 percent long duration bonds, 30
outcomes using a broad range of possible scenarios, percent global equities, 10 percent real assets, 10 percent
including a mix of possible rates of inflation and economic private equity funds, 5 percent domestic mid-small cap
growth. Starting with current economic information, the equities, 5 percent emerging markets equities, and 5
model bases its projections on past relationships between percent hedge funds is appropriate.
inflation, fixed income rates and equity returns when these At both December 31, 2024 and 2023, plan assets
types of economic conditions have existed over the included an asset management arrangement with a related
previous 30 years, both in the United States and in foreign party totaling approximately $63 million.
countries. Estimated future returns and other actuarially In addition to cash and cash equivalents, the qualified
determined adjustments are also considered in calculating pension plans invest in funds that do not have readily
the estimated return on assets. determinable fair values. These funds are valued based on
Generally, based on historical performance of the net asset values provided by the fund trustee or
various investment asset classes, investments in equities administrator as a practical expedient.
have outperformed other investment classes but are

The following table summarizes the pension plans investment assets at December 31:
(Dollars in Millions) 2024 2023
Cash and cash equivalents $ 63 $ 68
Collective investment funds
Domestic equity securities 1,788 1,546
Mid-small cap equity securities 474 406
International equity securities 968 981
Real estate securities 171 142
Fixed income 1,958 2,295
Real estate funds(a) 733 746
Hedge funds(b) 354 412
Private equity funds(c) 1,325 1,183
Total plan investment assets at fair value $ 7,834 $ 7,779
(a) This category consists of several investment strategies diversified across several real estate managers.
(b) This category consists of several investment strategies diversified across several hedge fund managers.
(c) This category consists of several investment strategies diversified across several private equity fund managers.

The following benefit payments are expected to be paid from the pension plans for the years ended December 31:
(Dollars in Millions)
2025 $ 386
2026 394
2027 428
2028 451
2029 470
2030-2034 2,623

106 U.S. Bancorp 2024 Annual Report

NOTE 17 Stock-Based Compensation
As part of its employee and director compensation certain vesting requirements are not met. Stock incentive
programs, the Company currently may grant certain stock plans of acquired companies are generally terminated at
awards under the provisions of its stock incentive plan. The the merger closing dates. Participants under such plans
plan provides for grants of options to purchase shares of receive the Company’s common stock, options to buy the
common stock at a fixed price equal to the fair value of the Company’s common stock, or long term cash incentives,
underlying stock at the date of grant. Option grants are based on the conversion terms of the various merger
generally exercisable up to ten years from the date of grant. agreements. At December 31, 2024, there were 46 million
In addition, the plan provides for grants of shares of shares (subject to adjustment for forfeitures) available for
common stock or stock units that are subject to restriction grant under the Company’s stock incentive plan.
on transfer prior to vesting. Most stock and unit awards vest
over three to five years and are subject to forfeiture if

Stock Option Awards

The following is a summary of stock options outstanding and exercised under prior and existing stock incentive plans of the
Company:
Weighted-
Average
Stock Weighted- Remaining Aggregate
Options/ Average Contractual Intrinsic Value
Year Ended December 31 Shares Exercise Price Term (in millions)

2024
Number outstanding at beginning of period 2,838,285 $ 45.28
Exercised (769,636) 42.04
Cancelled(a) (20,402) 46.15
Number outstanding at end of period(b) 2,048,247 $ 46.49 1.4 $ 3
Exercisable at end of period 2,048,247 $ 46.49 1.4 $ 3
2023
Number outstanding at beginning of period 3,253,090 $ 44.42
Exercised (399,329) 38.15
Cancelled(a) (15,476) 47.88
(b)
Number outstanding at end of period 2,838,285 $ 45.28 2.0 $ —
Exercisable at end of period 2,838,285 $ 45.28 2.0 $ —
2022
Number outstanding at beginning of period 3,890,131 $ 42.58
Exercised (624,729) 32.87
Cancelled(a) (12,312) 50.97
Number outstanding at end of period(b) 3,253,090 $ 44.42 2.7 $ —
Exercisable at end of period 3,253,090 $ 44.42 2.7 $ —
Note: The Company did not grant any stock option awards during 2024, 2023, and 2022.
(a) Options cancelled include both non-vested (i.e., forfeitures) and vested options.
(b) Outstanding options include stock-based awards that may be forfeited in future periods. The impact of the estimated forfeitures is reflected in compensation expense.

Stock-based compensation expense is based on the including vesting provisions and trading limitations that
estimated fair value of the award at the date of grant or impact their liquidity, the determined value used to
modification. The fair value of each option award is measure compensation expense may vary from the actual
estimated on the date of grant using the Black-Scholes fair value of the employee stock options. To satisfy option
option-pricing model, requiring the use of subjective exercises, the Company predominantly uses treasury stock.
assumptions. Because employee stock options have
characteristics that differ from those of traded options,

107
The following summarizes certain stock option activity of the Company:
Year Ended December 31 (Dollars in Millions) 2024 2023 2022
Fair value of options vested $ — $ — $ —
Intrinsic value of options exercised 3 2 15
Cash received from options exercised 32 15 21
Tax benefit realized from options exercised 1 1 4

Additional information regarding stock options outstanding as of December 31, 2024, is as follows:
Outstanding Options Exercisable Options
Weighted-
Average Weighted- Weighted-
Remaining Average Average
Contractual Exercise Exercise
Range of Exercise Prices Shares Life (Years) Price Shares Price
$35.01—$40.00 915,364 1.1 $ 39.49 915,364 $ 39.49
$40.01—$45.00 299,092 0.1 44.30 299,092 44.30
$45.01—$50.00 — — — — —
$50.01—$55.01 833,791 2.1 54.96 833,791 54.96

2,048,247 1.4 $ 46.49 2,048,247 $ 46.49

Restricted Stock and Unit Awards

A summary of the status of the Company’s restricted shares of stock and unit awards is presented below:
2024 2023 2022
Weighted- Weighted- Weighted-
Average Grant- Average Grant- Average Grant-
Year Ended December 31 Shares Date Fair Value Shares Date Fair Value Shares Date Fair Value
Outstanding at beginning of period 8,316,571 $ 48.42 6,880,826 $ 52.59 6,812,753 $ 51.04
Granted 6,107,976 42.12 5,565,634 45.87 4,109,793 55.62
Vested (4,680,480) 48.52 (3,872,874) 52.05 (3,690,666) 52.88
Cancelled (502,680) 44.06 (257,015) 50.00 (351,054) 54.95
Outstanding at end of period 9,241,387 $ 44.45 8,316,571 $ 48.42 6,880,826 $ 52.59

The total fair value of shares vested was $208 million, and $152 million for the years ended December 31, 2024,
$180 million and $198 million for the years ended 2023 and 2022, respectively. As of December 31, 2024,
December 31, 2024, 2023 and 2022, respectively. Stock- there was $169 million of total unrecognized compensation
based compensation expense was $232 million, $224 cost related to nonvested share-based arrangements
million and $202 million for the years ended December 31, granted under the plans. That cost is expected to be
2024, 2023 and 2022, respectively. On an after-tax basis, recognized over a weighted-average period of 1.8 years as
stock-based compensation was $173 million, $167 million compensation expense.

108 U.S. Bancorp 2024 Annual Report

 NOTE 18 Income Taxes
The components of income tax expense were:

Year Ended December 31 (Dollars in Millions) 2024 2023 2022

Federal
Current $ 1,272 $ 1,434 $ 1,366
Deferred (6) (326) (108)
Federal income tax 1,266 1,108 1,258
State
Current 279 482 401
Deferred 35 (183) (196)
State income tax 314 299 205
Total income tax provision $ 1,580 $ 1,407 $ 1,463

A reconciliation of expected income tax expense at the federal statutory rate of 21 percent to the Company’s applicable income
tax expense follows:
Year Ended December 31 (Dollars in Millions) 2024 2023 2022
Tax at statutory rate $ 1,661 $ 1,442 $ 1,533
State income tax, at statutory rates, net of federal tax benefit 385 322 305
Tax effect of
Tax credits and benefits, net of related expenses (393) (272) (273)
Tax-exempt income (144) (142) (121)
Exam Resolutions (106) (35) —
Revaluation of tax related assets and liabilities(a) (8) 15 (79)
Nondeductible legal and regulatory expenses 57 76 37
Other items 128 1 61
Applicable income taxes $ 1,580 $ 1,407 $ 1,463
(a) The 2022 acquisition of MUB resulted in an increase in the Company’s state effective tax rate, requiring the Company to revalue its state deferred tax assets and liabilities. As a
result of this revaluation, the Company recorded an estimated net tax benefit of $79 million during 2022.

The tax effects of fair value adjustments on securities interpretations of these complex laws, regulations and
available-for-sale, derivative instruments in cash flow methods. Due to the nature of the examination process, it
hedges, foreign currency translation adjustments, and generally takes years before these examinations are
pension and post-retirement plans are recorded directly to completed and matters are resolved. Federal tax
shareholders’ equity as part of other comprehensive examinations for all years ending through December 31,
income (loss). 2020 are completed and resolved. The Company’s tax
In preparing its tax returns, the Company is required to returns for the years ended December 31, 2021 through
interpret complex tax laws and regulations and utilize December 31, 2022 are under examination by the Internal
income and cost allocation methods to determine its Revenue Service. The years open to examination by
taxable income. On an ongoing basis, the Company is foreign, state and local government authorities vary by
subject to examinations by federal, state, local and foreign jurisdiction.
taxing authorities that may give rise to differing

A reconciliation of the changes in the federal, state and foreign uncertain tax position balances are summarized as follows:
Year Ended December 31 (Dollars in Millions) 2024 2023 2022
Balance at beginning of period $ 350 $ 513 $ 487
Additions for tax positions taken in prior years 32 141 35
Additions for tax positions taken in the current year 6 3 3
Exam resolutions (131) (302) (8)
Statute expirations (1) (5) (4)
Balance at end of period $ 256 $ 350 $ 513

109
 The total amount of uncertain tax positions that, if 2023 and 2022 the Company recorded approximately $(13)
recognized, would impact the effective income tax rate as million, $(11) million and $7 million, respectively, in interest
of December 31, 2024, 2023 and 2022, were $206 million, and penalties on uncertain tax positions.
$276 million and $294 million, respectively. The Company Deferred income tax assets and liabilities reflect the tax
classifies interest and penalties related to uncertain tax effect of estimated temporary differences between the
positions as a component of income tax expense. At carrying amounts of assets and liabilities for financial
December 31, 2024, the Company’s uncertain tax position reporting purposes and the amounts used for the same
balance included $27 million of accrued interest and items for income tax reporting purposes.
penalties. During the years ended December 31, 2024,

The significant components of the Company’s net deferred tax asset (liability) follows:

At December 31 (Dollars in Millions) 2024 2023

Deferred Tax Assets

Securities available-for-sale and financial instruments $ 3,129 $ 3,231
Federal, state and foreign net operating loss, credit carryforwards and other carryforwards 2,772 2,836
Allowance for credit losses 2,086 2,051
Loans 869 1,013
Accrued expenses 767 838
Obligation for operating leases 341 348
Partnerships and other investment assets 264 271
Stock compensation 89 87
Other deferred tax assets, net 383 370
Gross deferred tax assets 10,700 11,045
Deferred Tax Liabilities
Goodwill and other intangible assets (1,362) (1,450)
Leasing activities (1,273) (1,455)
Mortgage servicing rights (789) (758)
Right of use operating leases (297) (301)
Pension and postretirement benefits (184) (115)
Fixed assets (28) (44)
Other deferred tax liabilities, net (125) (168)
Gross deferred tax liabilities (4,058) (4,291)
Valuation allowance (389) (364)
Net Deferred Tax Asset $ 6,253 $ 6,390

The Company has approximately $3.0 billion of federal, At December 31, 2024, retained earnings included
state and foreign net operating loss carryforwards which approximately $102 million of base year reserves of
expire at various times beginning in 2025. A substantial acquired thrift institutions, for which no deferred federal
portion of these carryforwards relate to state-only net income tax liability has been recognized. These base year
operating losses, for which the related deferred tax asset is reserves would be recaptured if certain subsidiaries of the
subject to a full valuation allowance as the carryforwards Company cease to qualify as a bank for federal income tax
are not expected to be realized within the carryforward purposes. The base year reserves also remain subject to
period. Management has determined it is more likely than income tax penalty provisions that, in general, require
not the other net deferred tax assets could be realized recapture upon certain stock redemptions of, and excess
through carry back to taxable income in prior years, future distributions to, stockholders.
reversals of existing taxable temporary differences and
future taxable income.
In addition, the Company has $1.2 billion of federal
credit carryforwards which expire at various times through
2044 which are not subject to a valuation allowance as
management believes that it is more likely than not that the
credits will be utilized within the carryforward period.

110 U.S. Bancorp 2024 Annual Report

NOTE 19 Derivative Instruments
In the ordinary course of business, the Company enters into (net-of-tax). All cash flow hedges were highly effective for
derivative transactions to manage various risks and to the year ended December 31, 2024.
accommodate the business requirements of its customers.
Net Investment Hedges The Company uses forward
The Company recognizes all derivatives on the
commitments to sell specified amounts of certain foreign
Consolidated Balance Sheet at fair value in other assets or
currencies, and non-derivative debt instruments, to hedge
in other liabilities. On the date the Company enters into a
the volatility of its net investment in foreign operations
derivative contract, the derivative is designated as either a
driven by fluctuations in foreign currency exchange rates.
fair value hedge, cash flow hedge, net investment hedge,
The carrying amount of non-derivative debt instruments
or a designation is not made as it is a customer-related
designated as net investment hedges was $1.3 billion at
transaction, an economic hedge for asset/liability risk
December 31, 2024 and December 31, 2023.
management purposes or another stand-alone derivative
created through the Company’s operations (“free-standing Other Derivative Positions The Company enters into free-
derivative”). When a derivative is designated as a fair value, standing derivatives to mitigate interest rate risk and for
cash flow or net investment hedge, the Company performs other risk management purposes. These derivatives include
an assessment, at inception and, at a minimum, quarterly forward commitments to sell TBAs and other commitments
thereafter, to determine the effectiveness of the derivative in to sell residential mortgage loans, which are used to
offsetting changes in the value or cash flows of the hedged economically hedge the interest rate risk related to MLHFS
item(s). and unfunded mortgage loan commitments. The Company
also enters into interest rate swaps, swaptions, forward
Fair Value Hedges These derivatives are interest rate
commitments to buy TBAs, U.S. Treasury and Eurodollar
swaps the Company uses to hedge the change in fair value
futures and options on U.S. Treasury futures to
related to interest rate changes of its underlying available-
economically hedge the change in the fair value of the
for-sale investment securities and fixed-rate debt. Changes
Company’s MSRs. The Company enters into foreign
in the fair value of derivatives designated as fair value
currency forwards to economically hedge remeasurement
hedges, and changes in the fair value of the hedged items,
gains and losses the Company recognizes on foreign
are recorded in earnings.
currency denominated assets and liabilities. The Company
Cash Flow Hedges These derivatives are interest rate also enters into interest rate swaps as economic hedges of
swaps the Company uses to hedge the forecasted cash fair value option elected deposits and long-term debt. In
flows from its underlying variable-rate loans and debt. addition, the Company acts as a seller and buyer of interest
Changes in the fair value of derivatives designated as cash rate, foreign exchange and commodity contracts for its
flow hedges are recorded in other comprehensive income customers. The Company mitigates the market, funding
(loss) until the cash flows of the hedged items are realized. and liquidity risk associated with these customer
If a derivative designated as a cash flow hedge is derivatives by entering into similar offsetting positions with
terminated or ceases to be highly effective, the gain or loss broker-dealers, or on a portfolio basis by entering into other
in other comprehensive income (loss) is amortized to derivative or non-derivative financial instruments that
earnings over the period the forecasted hedged partially or fully offset the exposure to earnings from these
transactions impact earnings. If a hedged forecasted customer-related positions. The Company’s customer
transaction is no longer probable, hedge accounting is derivatives and related hedges are monitored and reviewed
ceased and any gain or loss included in other by the Company’s Market Risk Committee, which
comprehensive income (loss) is reported in earnings establishes policies for market risk management, including
immediately, unless the forecasted transaction is at least exposure limits for each portfolio. The Company also has
reasonably possible of occurring, whereby the amounts derivative contracts that are created through its operations,
remain within other comprehensive income (loss). At including certain unfunded mortgage loan commitments
December 31, 2024, the Company had $553 million (net-of- and swap agreements related to the sale of a portion of its
tax) of realized and unrealized losses on derivatives Class B common and preferred shares of Visa Inc. Refer to
classified as cash flow hedges recorded in other Note 22 for further information on these swap agreements.
comprehensive income (loss), compared with $242 million The Company uses credit derivatives to economically
(net-of-tax) of realized and unrealized losses at hedge the credit risk on its derivative positions and loan
December 31, 2023. The estimated amount to be portfolios.
reclassified from other comprehensive income (loss) into
earnings during the next 12 months is a loss of $222 million

111
The following table summarizes the asset and liability management derivative positions of the Company at December 31:

2024 2023

Fair Value Fair Value

Notional Notional
(Dollars in Millions) Value Assets Liabilities Value Assets Liabilities
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps $ 10,600 $ — $ — $ 12,100 $ — $ 16
Pay fixed/receive floating swaps 29,739 — — 24,139 — —
Cash flow hedges
Interest rate contracts
Receive fixed/pay floating swaps 28,550 — — 18,400 — —
Net investment hedges
Foreign exchange forward contracts 870 7 — 854 — 10
Other economic hedges
Interest rate contracts
Futures and forwards
Buy 5,436 8 30 5,006 29 5
Sell 2,711 10 1 4,501 7 34
Options
Purchased 7,810 186 — 6,085 237 —
Written 1,991 8 47 3,696 14 75
Receive fixed/pay floating swaps 9,977 45 23 7,029 9 3
Pay fixed/receive floating swaps 2,371 — — 3,801 — —
Foreign exchange forward contracts 702 4 4 734 2 5
Equity contracts 293 — 9 227 2 —
Credit contracts 3,558 — 29 2,620 1 —
Other (a) 1,084 7 78 2,136 11 93
Total $ 105,692 $ 275 $ 221 $ 91,328 $ 312 $ 241
(a) Includes derivative liability swap agreements related to the sale of a portion of the Company’s Class B common and preferred shares of Visa Inc. The Visa swap agreements had
a total notional value and fair value of $1.0 billion and $78 million at December 31, 2024, respectively, compared to $2.0 billion and $91 million at December 31, 2023,
respectively. In addition, includes short-term underwriting purchase and sale commitments with total notional value of $28 million at December 31, 2023.

112 U.S. Bancorp 2024 Annual Report

The following table summarizes the customer-related derivative positions of the Company at December 31:

2024 2023

Fair Value Fair Value

Notional Notional
(Dollars in Millions) Value Assets Liabilities Value Assets Liabilities
Interest rate contracts
Receive fixed/pay floating swaps $ 413,841 $ 462 $ 4,485 $ 363,375 $ 791 $ 4,395
Pay fixed/receive floating swaps 363,837 2,342 153 330,539 1,817 280
Other(a) 72,503 17 34 82,209 17 51
Options
Purchased 96,238 414 2 102,423 1,026 18
Written 90,572 12 574 97,690 20 1,087
Foreign exchange rate contracts
Forwards, spots and swaps 113,718 2,441 2,232 121,119 2,252 1,942
Options
Purchased 497 14 — 1,532 28 —
Written 497 — 14 1,532 — 28
Commodity contracts
Swaps 8,224 199 180 2,498 116 110
Options
Purchased 3,921 233 2 1,936 151 —
Written 3,921 3 233 1,936 — 151
Futures
Buy 1 — — — — —
Sell 166 25 27 — — —
Credit contracts 13,670 — 3 13,053 1 6
Total $1,181,606 $ 6,162 $ 7,939 $1,119,842 $ 6,219 $ 8,068
(a) Primarily represents floating rate interest rate swaps that pay based on differentials between specified interest rate indexes.

The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains
(losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax) for the years ended December 31:

Gains (Losses) Recognized Gains (Losses) Reclassified

in Other Comprehensive from Other Comprehensive
Income (Loss) Income (Loss) into Earnings

(Dollars in Millions) 2024 2023 2022 2024 2023 2022

Asset and Liability Management Positions

Cash flow hedges
Interest rate contracts $ (503) $ (187) $ (56) $ (192) $ (59) $ (27)
Net investment hedges
Foreign exchange forward contracts 121 (11) 42 — — —
Non-derivative debt instruments 85 (33) 59 — — —
Note: The Company does not exclude components from effectiveness testing for cash flow and net investment hedges.

113
The table below shows the effect of fair value and cash flow hedge accounting on the Consolidated Statement of Income for the
years ended December 31:

Interest Income Interest Expense

(Dollars in Millions) 2024 2023 2022 2024 2023 2022

Total amount of income and expense line items presented in the
Consolidated Statement of Income in which the effects of fair value
or cash flow hedges are recorded $ 31,666 $ 30,007 $ 17,945 $ 15,377 $ 12,611 $ 3,217
Asset and Liability Management Positions
Fair value hedges
Interest rate contract derivatives 508 (430) 138 95 (458) 482
Hedged items (508) 427 (139) (98) 461 (486)
Cash flow hedges
Interest rate contract derivatives (230) (52) — 28 28 —
Note: The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company reclassified losses of $28 million, $28 million and $36
million into earnings during the years ended December 31, 2024, 2023 and 2022, respectively, as a result of realized cash flows on discontinued cash flow hedges. No amounts
were reclassified into earnings on discontinued cash flow hedges because it is probable the original hedged forecasted cash flows will not occur.

The table below shows cumulative hedging adjustments and the carrying amount of assets and liabilities currently designated in fair
value hedges at December 31:
Carrying Amount of
the Hedged Assets Cumulative Hedging
and Liabilities Adjustment

(Dollars in Millions) 2024 2023 2024 2023

Line Item in the Consolidated Balance Sheet

Available-for-sale investment securities(a) $29,005 $23,924 $ (464) $ (93)
Long-term debt 10,632 12,034 39 (32)
Note: The table above excludes the cumulative hedging adjustment related to discontinued hedging relationships on available-for-sale investment securities and long-term debt of
$(72) million and $(149) million, respectively, at December 31, 2024, compared with $(18) million and $(116) million at December 31, 2023, respectively. The carrying amount of
available-for-sale investment securities and long-term debt related to discontinued hedging relationships was $6.8 billion and $14.9 billion, respectively, at December 31, 2024,
compared with $830 million and $7.2 billion at December 31, 2023, respectively.
(a) Includes amounts related to available-for-sale investment securities currently designated as the hedged item in a fair value hedge using the portfolio layer method. At
December 31, 2024, the amortized cost of the closed portfolios used in these hedging relationships was $17.5 billion, of which $11.6 billion was designated as hedged. At
December 31, 2024, the cumulative amount of basis adjustments associated with these hedging relationships was $13 million. At December 31, 2023, the amortized cost of the
closed portfolios used in these hedging relationships was $15.6 billion, of which $9.6 billion was designated as hedged. At December 31, 2023, the cumulative amount of basis
adjustments associated with these hedging relationships was $335 million.

114 U.S. Bancorp 2024 Annual Report

The table below shows the gains (losses) recognized in earnings for other economic hedges and the customer-related positions for the
years ended December 31:
Location of Gains (Losses)
(Dollars in Millions) Recognized in Earnings 2024 2023 2022

Asset and Liability Management Positions

Other economic hedges
Interest rate contracts
Futures and forwards Mortgage banking revenue $ 5 $ 71 $ 407
Purchased and written options Mortgage banking revenue 195 89 1
Swaps Mortgage banking revenue/Other
noninterest income/Interest expense (201) (19) (1,010)
Foreign exchange forward contracts Other noninterest income 23 (7) (1)
Equity contracts Compensation expense (4) (8) (8)
Credit contracts Commercial products revenue (21) — —
Other Other noninterest income (147) 1 (181)
Customer-Related Positions
Interest rate contracts
Swaps Commercial products revenue 280 185 98
Purchased and written options Commercial products revenue (58) 45 20
Futures Commercial products revenue — (1) 30
Foreign exchange rate contracts
Forwards, spots and swaps Commercial products revenue 215 195 100
Purchased and written options Commercial products revenue — 1 1
Commodity contracts
Swaps Commercial products revenue 16 6 —
Purchased and written options Commercial products revenue 6 — —
Credit contracts Commercial products revenue (3) 1 20

Derivatives are subject to credit risk associated with The Company’s collateral arrangements are
counterparties to the derivative contracts. The Company predominately bilateral and, therefore, contain provisions
measures that credit risk using a credit valuation that require collateralization of the Company’s net liability
adjustment and includes it within the fair value of the derivative positions. Required collateral coverage is based
derivative. The Company manages counterparty credit risk on net liability thresholds and may be contingent upon the
through diversification of its derivative positions among Company’s credit rating from two of the nationally
various counterparties, by entering into derivative positions recognized statistical rating organizations. If the Company’s
that are centrally cleared through clearinghouses, by credit rating were to fall below credit ratings thresholds
entering into master netting arrangements and, where established in the collateral arrangements, the
possible, by requiring collateral arrangements. A master counterparties to the derivatives could request immediate
netting arrangement allows two counterparties, who have additional collateral coverage up to and including full
multiple derivative contracts with each other, the ability to collateral coverage for derivatives in a net liability position.
net settle amounts under all contracts, including any related The aggregate fair value of all derivatives under collateral
collateral, through a single payment and in a single arrangements that were in a net liability position at
currency. Collateral arrangements generally require the December 31, 2024, was $2.3 billion. At December 31,
counterparty to deliver collateral (typically cash or U.S. 2024, the Company had $1.9 billion of cash posted as
Treasury and agency securities) equal to the Company’s collateral against this net liability position.
net derivative receivable, subject to minimum transfer and
credit rating requirements.

115
NOTE 20 Netting Arrangements for Certain Financial Instruments and Securities
Financing Activities
The Company’s derivative portfolio consists of bilateral which are accounted for as collateralized financings.
over-the-counter trades, certain interest rate derivatives Securities sold under agreements to repurchase include
and credit contracts required to be centrally cleared repurchase agreements and securities loaned transactions.
through clearinghouses per current regulations, and Securities purchased under agreements to resell include
exchange-traded positions which may include U.S. reverse repurchase agreements and securities borrowed
Treasury and Eurodollar futures or options on U.S. Treasury transactions. For securities sold under agreements to
futures. Of the Company’s $1.3 trillion total notional amount repurchase, the Company records a liability for the cash
of derivative positions at December 31, 2024, $576.7 billion received, which is included in short-term borrowings on the
related to bilateral over-the-counter trades, $709.5 billion Consolidated Balance Sheet. For securities purchased
related to those centrally cleared through clearinghouses under agreements to resell, the Company records a
and $1.2 billion related to those that were exchange-traded. receivable for the cash paid, which is included in other
The Company’s derivative contracts typically include assets on the Consolidated Balance Sheet.
offsetting rights (referred to as netting arrangements), and Securities transferred to counterparties under
depending on expected volume, credit risk, and repurchase agreements and securities loaned transactions
counterparty preference, collateral maintenance may be continue to be recognized on the Consolidated Balance
required. For all derivatives under collateral support Sheet, are measured at fair value, and are included in
arrangements, fair value is determined daily and, investment securities or other assets. Securities received
depending on the collateral maintenance requirements, the from counterparties under reverse repurchase agreements
Company and a counterparty may receive or deliver and securities borrowed transactions are not recognized on
collateral, based upon the net fair value of all derivative the Consolidated Balance Sheet unless the counterparty
positions between the Company and the counterparty. defaults. The securities transferred under repurchase and
Collateral is typically cash, but securities may be allowed reverse repurchase transactions typically are U.S. Treasury
under collateral arrangements with certain counterparties. and agency securities, residential agency mortgage-
Receivables and payables related to cash collateral are backed securities, corporate debt securities or asset-
included in other assets and other liabilities on the backed securities. The securities loaned or borrowed
Consolidated Balance Sheet, along with the related typically are corporate debt securities traded by the
derivative asset and liability fair values. Any securities Company’s primary broker-dealer subsidiary. In general,
pledged to counterparties as collateral remain on the the securities transferred can be sold, repledged or
Consolidated Balance Sheet. Securities received from otherwise used by the party in possession. No restrictions
counterparties as collateral are not recognized on the exist on the use of cash collateral by either party.
Consolidated Balance Sheet, unless the counterparty Repurchase/reverse repurchase and securities loaned/
defaults. In general, securities used as collateral can be borrowed transactions expose the Company to
sold, repledged or otherwise used by the party in counterparty risk. The Company manages this risk by
possession. No restrictions exist on the use of cash performing assessments, independent of business line
collateral by either party. Refer to Note 19 for further managers, and establishing concentration limits on each
discussion of the Company’s derivatives, including counterparty. Additionally, these transactions include
collateral arrangements. collateral arrangements that require the fair values of the
As part of the Company’s treasury and broker-dealer underlying securities to be determined daily, resulting in
operations, the Company executes transactions that are cash being obtained from or refunded to counterparties to
treated as securities sold under agreements to repurchase maintain specified collateral levels.
or securities purchased under agreements to resell, both of

116 U.S. Bancorp 2024 Annual Report

The following table summarizes the maturities by category of collateral pledged for repurchase agreements and securities
loaned transactions:

Overnight and Less Than 30 Greater Than

(Dollars in Millions) Continuous Days 30-89 Days 90 Days Total

December 31, 2024

Repurchase agreements
U.S. Treasury and agencies $ 5,918 $ — $ — $ — $ 5,918
Residential agency mortgage-backed securities 319 — — — 319
Corporate debt securities 1,116 — — — 1,116
Asset-backed securities 270 22 — — 292
Total repurchase agreements 7,623 22 — — 7,645
Securities loaned
Corporate debt securities 90 — — — 90
Total securities loaned 90 — — — 90
Gross amount of recognized liabilities $ 7,713 $ 22 $ — $ — $ 7,735
December 31, 2023
Repurchase agreements
U.S. Treasury and agencies $ 2,375 $ — $ — $ — $ 2,375
Residential agency mortgage-backed securities 338 — — — 338
Corporate debt securities 821 — — — 821
Asset-backed securities — 45 — — 45
Total repurchase agreements 3,534 45 — — 3,579
Securities loaned
Corporate debt securities 290 — — — 290
Total securities loaned 290 — — — 290
Gross amount of recognized liabilities $ 3,824 $ 45 $ — $ — $ 3,869

The Company executes its derivative, repurchase/ The Company has elected to offset the assets and
reverse repurchase and securities loaned/borrowed liabilities under netting arrangements for the balance sheet
transactions under the respective industry standard presentation of the majority of its derivative counterparties.
agreements. These agreements include master netting The netting occurs at the counterparty level, and includes
arrangements that allow for multiple contracts executed all assets and liabilities related to the derivative contracts,
with the same counterparty to be viewed as a single including those associated with cash collateral received or
arrangement. This allows for net settlement of a single delivered. The Company has not elected to offset the
amount on a daily basis. In the event of default, the master assets and liabilities under netting arrangements for the
netting arrangement provides for close-out netting, which balance sheet presentation of repurchase/reverse
allows all of these positions with the defaulting counterparty repurchase and securities loaned/borrowed transactions.
to be terminated and net settled with a single payment
amount.

117
The following tables provide information on the Company’s netting adjustments, and items not offset on the Consolidated
Balance Sheet but available for offset in the event of default:
Gross Amounts Not Offset on the
Gross Amounts Net Amounts Consolidated Balance Sheet
Gross Offset on the Presented on the
Recognized Consolidated Consolidated Financial Collateral
(Dollars in Millions) Assets Balance Sheet(a) Balance Sheet Instruments(b) Received(c) Net Amount
December 31, 2024
Derivative assets(d) $ 6,422 $ (2,979) $ 3,443 $ (177) $ (5) $ 3,261
Reverse repurchase agreements 6,383 — 6,383 (851) (5,508) 24
Securities borrowed 1,516 — 1,516 — (1,453) 63
Total $ 14,321 $ (2,979) $ 11,342 $ (1,028) $ (6,966) $ 3,348
December 31, 2023
Derivative assets(d) $ 6,504 $ (3,666) $ 2,838 $ (141) $ (3) $ 2,694
Reverse repurchase agreements 2,513 — 2,513 (568) (1,941) 4
Securities borrowed 1,802 — 1,802 (14) (1,717) 71
Total $ 10,819 $ (3,666) $ 7,153 $ (723) $ (3,661) $ 2,769
(a) Includes $1.9 billion and $1.6 billion of cash collateral related payables that were netted against derivative assets at December 31, 2024 and 2023, respectively.
(b) For derivative assets this includes any derivative liability fair values that could be offset in the event of counterparty default; for reverse repurchase agreements this includes any
repurchase agreement payables that could be offset in the event of counterparty default; for securities borrowed this includes any securities loaned payables that could be offset in
the event of counterparty default.
(c) Includes the fair value of securities received by the Company from the counterparty. These securities are not included on the Consolidated Balance Sheet unless the counterparty
defaults.
(d) Excludes $15 million and $27 million at December 31, 2024 and 2023, respectively, of derivative assets not subject to netting arrangements.

Gross Amounts Not Offset on the

Gross Amounts Net Amounts Consolidated Balance Sheet
Gross Offset on the Presented on the
Recognized Consolidated Consolidated Financial Collateral
(Dollars in Millions) Liabilities Balance Sheet(a) Balance Sheet Instruments(b) Pledged(c) Net Amount
December 31, 2024
Derivative liabilities(d) $ 8,081 $ (2,949) $ 5,132 $ (177) $ — $ 4,955
Repurchase agreements 7,645 — 7,645 (851) (6,787) 7
Securities loaned 90 — 90 — (88) 2
Total $ 15,816 $ (2,949) $ 12,867 $ (1,028) $ (6,875) $ 4,964
December 31, 2023
Derivative liabilities(d) $ 8,217 $ (3,720) $ 4,497 $ (141) $ — $ 4,356
Repurchase agreements 3,579 — 3,579 (568) (3,008) 3
Securities loaned 290 — 290 (14) (270) 6
Total $ 12,086 $ (3,720) $ 8,366 $ (723) $ (3,278) $ 4,365
(a) Includes $1.9 billion and $1.7 billion of cash collateral related receivables that were netted against derivative liabilities at December 31, 2024 and 2023, respectively.
(b) For derivative liabilities this includes any derivative asset fair values that could be offset in the event of counterparty default; for repurchase agreements this includes any reverse
repurchase agreement receivables that could be offset in the event of counterparty default; for securities loaned this includes any securities borrowed receivables that could be
offset in the event of counterparty default.
(c) Includes the fair value of securities pledged by the Company to the counterparty. These securities are included on the Consolidated Balance Sheet unless the Company defaults.
(d) Excludes $79 million and $92 million at December 31, 2024 and 2023, respectively, of derivative liabilities not subject to netting arrangements.

118 U.S. Bancorp 2024 Annual Report

NOTE 21 Fair Values of Assets and Liabilities
The Company uses fair value measurements for the initial data; and MLHFS whose values are determined using
recording of certain assets and liabilities, periodic quoted prices for similar assets or pricing models with
remeasurement of certain assets and liabilities, and inputs that are observable in the market or can be
disclosures. Derivatives, trading and available-for-sale corroborated by observable market data.
investment securities, MSRs, certain time deposits and
• Level 3 — Unobservable inputs that are supported by
structured long-term notes, and substantially all MLHFS are
little or no market activity and that are significant to the
recorded at fair value on a recurring basis. Additionally,
fair value of the assets or liabilities. Level 3 assets and
from time to time, the Company may be required to record
liabilities include financial instruments whose values are
at fair value other assets on a nonrecurring basis, such as
determined using pricing models, discounted cash flow
loans held for sale, loans held for investment and certain
methodologies, or similar techniques, as well as
other assets. These nonrecurring fair value adjustments
instruments for which the determination of fair value
typically involve application of lower-of-cost-or-fair value
requires significant management judgment or estimation.
accounting or impairment write-downs of individual assets.
This category includes MSRs and certain derivative
Other financial instruments, such as held-to-maturity
contracts.
investment securities, loans, the majority of time deposits,
short-term borrowings and long-term debt, are accounted
Valuation Methodologies
for at amortized cost. See “Fair Value of Financial
Instruments” in this Note for further information on the The valuation methodologies used by the Company to
estimated fair value of these other financial instruments. In measure financial assets and liabilities at fair value are
accordance with disclosure guidance, certain financial described below. In addition, the following section includes
instruments, such as deposits with no defined or an indication of the level of the fair value hierarchy in which
contractual maturity, receivables and payables due in one the assets or liabilities are classified. Where appropriate,
year or less, insurance contracts and equity investments the descriptions include information about the valuation
not accounted for at fair value, are excluded from this Note. models and key inputs to those models. During the years
Fair value is defined as the exchange price that would ended December 31, 2024, 2023 and 2022, there were no
be received for an asset or paid to transfer a liability (an significant changes to the valuation techniques used by the
exit price) in the principal or most advantageous market for Company to measure fair value.
the asset or liability in an orderly transaction between
market participants on the measurement date. A fair value Available-for-Sale Investment Securities When quoted
measurement reflects all of the assumptions that market market prices for identical securities are available in an
participants would use in pricing the asset or liability, active market, these prices are used to determine fair value
including assumptions about the risk inherent in a particular and these securities are classified within Level 1 of the fair
valuation technique, the effect of a restriction on the sale or value hierarchy. Level 1 investment securities include U.S.
use of an asset and the risk of nonperformance. Treasury and exchange-traded securities.
The Company groups its assets and liabilities For other securities, quoted market prices may not be
measured at fair value into a three-level hierarchy for readily available for the specific securities. When possible,
valuation techniques used to measure financial assets and the Company determines fair value based on market
financial liabilities at fair value. This hierarchy is based on observable information, including quoted market prices for
whether the valuation inputs are observable or similar securities, inactive transaction prices, and broker
unobservable. These levels are: quotes. These securities are classified within Level 2 of the
fair value hierarchy. Level 2 valuations are generally
• Level 1 — Quoted prices in active markets for identical provided by a third-party pricing service. Level 2
assets or liabilities. Level 1 includes U.S. Treasury investment securities are predominantly agency mortgage-
securities, as well as exchange-traded instruments. backed securities, certain other asset-backed securities,
obligations of state and political subdivisions and agency
• Level 2 — Observable inputs other than Level 1 prices,
debt securities.
such as quoted prices for similar assets or liabilities;
quoted prices in markets that are not active; or other Mortgage Loans Held For Sale MLHFS measured at fair
inputs that are observable or can be corroborated by value, for which an active secondary market and readily
observable market data for substantially the full term of available market prices exist, are initially valued at the
the assets or liabilities. Level 2 includes debt securities transaction price and are subsequently valued by
that are traded less frequently than exchange-traded comparison to instruments with similar collateral and risk
instruments and which are typically valued using third profiles. MLHFS are classified within Level 2. Included in
party pricing services; derivative contracts and other mortgage banking revenue were net losses of $15 million,
assets and liabilities, including securities, and certain $46 million and $450 million for the years ended
time deposits, and structured long-term notes, whose December 31, 2024, 2023 and 2022, respectively, from the
value is determined using a pricing model with inputs changes to fair value of these MLHFS under fair value
that are observable in the market or can be derived option accounting guidance. Changes in fair value due to
principally from or corroborated by observable market instrument specific credit risk were immaterial. Interest

119
income for MLHFS is measured based on contractual Derivatives The majority of derivatives held by the
interest rates and reported as interest income on the Company are executed over-the-counter or centrally
Consolidated Statement of Income. Electing to measure cleared through clearinghouses and are valued using
MLHFS at fair value reduces certain timing differences and market standard cash flow valuation techniques. The
better matches changes in fair value of these assets with models incorporate inputs, depending on the type of
changes in the value of the derivative instruments used to derivative, including interest rate curves, foreign exchange
economically hedge them without the burden of complying rates and volatility. All derivative values incorporate an
with the requirements for hedge accounting. assessment of the risk of counterparty nonperformance,
measured based on the Company’s evaluation of credit risk
Time Deposits The Company elects the fair value option to
including external assessments of credit risk. The Company
account for certain time deposits that are hedged with
monitors and manages its nonperformance risk by
derivatives that do not qualify for hedge accounting.
considering its ability to net derivative positions under
Electing to measure these time deposits at fair value
master netting arrangements, as well as collateral received
reduces certain timing differences and better matches
or provided under collateral arrangements. Accordingly,
changes in fair value of these deposits with changes in the
the Company has elected to measure the fair value of
value of the derivative instruments used to economically
derivatives, at a counterparty level, on a net basis. The
hedge them. The time deposits measured at fair value are
majority of the derivatives are classified within Level 2 of the
valued using a discounted cash flow model that utilizes
fair value hierarchy, as the significant inputs to the models,
market observable inputs and are classified within Level 2.
including nonperformance risk, are observable. However,
Included in interest expense on deposits were net gains of
certain derivative transactions are with counterparties
$4 million for both the years ended December 31, 2024 and
where risk of nonperformance cannot be observed in the
2023, from the changes in fair value of time deposits under
market and, therefore, the credit valuation adjustments
fair value option accounting guidance.
result in these derivatives being classified within Level 3 of
Long-term Debt The Company elects the fair value option the fair value hierarchy.
to account for certain structured notes that are hedged with The Company also has other derivative contracts that
derivatives that do not qualify for hedge accounting. are created through its operations, including commitments
Electing to measure these structured notes at fair value to purchase and originate mortgage loans and swap
reduces certain timing differences and better matches agreements executed in conjunction with the sale of a
changes in fair value of these notes with changes in the portion of its Class B common and preferred shares of Visa
value of the derivative instruments use to economically Inc. (the “Visa swaps”). The mortgage loan commitments
hedge them. The structured notes measured at fair value are valued by pricing models that include market
are valued using a discounted cash flow model that utilizes observable and unobservable inputs, which result in the
market observable inputs and are classified within Level 2. commitments being classified within Level 3 of the fair
The discount rate used in the discounted cash flow model value hierarchy. The unobservable inputs include
incorporates the impact of the Company's credit spread, assumptions about the percentage of commitments that
which is based on observable spreads in the secondary actually become a closed loan and the MSR value that is
bond market. Changes in fair value attributable to inherent in the underlying loan value. The Visa swaps
instrument specific credit risk are recorded as debit require payments by either the Company or the purchaser
valuation adjustments (“DVA”) in other comprehensive of the Visa Inc. Class B common and preferred shares
income (loss) with all other changes in fair value recorded when there are changes in the conversion rate of the Visa
in interest expense. Included in other comprehensive Inc. Class B common and preferred shares to Visa Inc.
income (loss) and interest expense on long-term debt were Class A common and preferred shares, respectively, as
net DVA gains of $1 million and net gains of $17 million, well as quarterly payments to the purchaser based on
respectively, for the year ended December 31, 2024 from specified terms of the agreements. Management reviews
the changes in fair value of structured notes under fair and updates the Visa swaps fair value in conjunction with
value option account guidance. its review of Visa Inc. related litigation contingencies, and
the associated escrow funding. The expected litigation
Mortgage Servicing Rights MSRs are valued using a
resolution impacts the Visa Inc. Class B common share to
discounted cash flow methodology, and are classified
Visa Inc. Class A common share conversion rate, as well as
within Level 3. The Company determines fair value of the
the ultimate termination date for the Visa swaps.
MSRs by projecting future cash flows for different interest
Accordingly, the Visa swaps are classified within Level 3.
rate scenarios using prepayment rates and other
Refer to Note 22 for further information on the Visa Inc.
assumptions, and discounts these cash flows using a risk
restructuring and related card association litigation.
adjusted rate based on option adjusted spread levels.
There is minimal observable market activity for MSRs on
comparable portfolios and, therefore, the determination of
fair value requires significant management judgment. Refer
to Note 9 for further information on MSR valuation
assumptions.

120 U.S. Bancorp 2024 Annual Report

Significant Unobservable Inputs of Mortgage Servicing Rights The significant unobservable
inputs used in the fair value measurement of the
Level 3 Assets and Liabilities Company’s MSRs are expected prepayments and the
The following section provides information to facilitate an option adjusted spread that is added to the risk-free rate to
understanding of the uncertainty in the fair value discount projected cash flows. Significant increases in
measurements for the Company’s Level 3 assets and either of these inputs in isolation would have resulted in a
liabilities recorded at fair value on the Consolidated significantly lower fair value measurement. Significant
Balance Sheet. This section includes a description of the decreases in either of these inputs in isolation would have
significant inputs used by the Company and a description resulted in a significantly higher fair value measurement.
of any interrelationships between these inputs. The There is no direct interrelationship between prepayments
discussion below excludes nonrecurring fair value and option adjusted spread. Prepayment rates generally
measurements of collateral value used for impairment move in the opposite direction of market interest rates.
measures for loans and OREO. These valuations utilize Option adjusted spread is generally impacted by changes
third party appraisal or broker price opinions, and are in market return requirements.
classified as Level 3 due to the significant judgment
involved.

The following table shows the significant valuation assumption ranges for MSRs at December 31, 2024:
Weighted-
Minimum Maximum Average(a)
Expected prepayment 6% 18 % 9%
Option adjusted spread 5 11 6
(a) Determined based on the relative fair value of the related mortgage loans serviced.

Derivatives The Company has two distinct Level 3 are the percentage of commitments that actually become a
derivative portfolios: (i) the Company’s commitments to closed loan and the MSR value that is inherent in the
purchase and originate mortgage loans that meet the underlying loan value. A significant increase in the rate of
requirements of a derivative and (ii) the Company’s asset/ loans that close would have resulted in a larger derivative
liability and customer-related derivatives that are Level 3 asset or liability. A significant increase in the inherent MSR
due to unobservable inputs related to measurement of risk value would have resulted in an increase in the derivative
of nonperformance by the counterparty. In addition, the asset or a reduction in the derivative liability. Expected loan
Company’s Visa swaps are classified within Level 3. close rates and the inherent MSR values are directly
The significant unobservable inputs used in the fair impacted by changes in market rates and will generally
value measurement of the Company’s derivative move in the same direction as interest rates.
commitments to purchase and originate mortgage loans

The following table shows the significant valuation assumption ranges for the Company’s derivative commitments to purchase
and originate mortgage loans at December 31, 2024:
Weighted-
Minimum Maximum Average(a)
Expected loan close rate 25 % 100 % 83 %
Inherent MSR value (basis points per loan) 63 196 116
(a) Determined based on the relative fair value of the related mortgage loans.

The significant unobservable input used in the fair value percentage of the net fair value of the counterparty’s
measurement of certain of the Company’s asset/liability and derivative contracts prior to adjustment was 0 percent,
customer-related derivatives is the credit valuation 6,313 percent and 2 percent, respectively.
adjustment related to the risk of counterparty The significant unobservable inputs used in the fair
nonperformance. A significant increase in the credit value measurement of the Visa swaps are management’s
valuation adjustment would have resulted in a lower fair estimate of the probability of certain litigation scenarios
value measurement. A significant decrease in the credit occurring, and the timing of the resolution of the related
valuation adjustment would have resulted in a higher fair litigation loss estimates in excess, or shortfall, of the
value measurement. The credit valuation adjustment is Company’s proportional share of escrow funds. An
impacted by changes in market rates, volatility, market increase in the loss estimate or a delay in the resolution of
implied credit spreads, and loss recovery rates, as well as the related litigation would have resulted in an increase in
the Company’s assessment of the counterparty’s credit the derivative liability. A decrease in the loss estimate or an
position. At December 31, 2024, the minimum, maximum acceleration of the resolution of the related litigation would
and weighted-average credit valuation adjustment as a have resulted in a decrease in the derivative liability.

121
The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis:

(Dollars in Millions) Level 1 Level 2 Level 3 Netting Total

December 31, 2024

Available-for-sale securities
U.S. Treasury and agencies $ 23,891 $ 4,496 $ — $ — $ 28,387
Mortgage-backed securities
Residential agency — 33,281 — — 33,281
Commercial
Agency — 7,351 — — 7,351
Non-agency — 6 — — 6
Asset-backed securities — 7,165 — — 7,165
Obligations of state and political subdivisions — 9,552 — — 9,552
Other — 250 — — 250
Total available-for-sale 23,891 62,101 — — 85,992
Mortgage loans held for sale — 2,251 — — 2,251
Mortgage servicing rights — — 3,369 — 3,369
Derivative assets 27 5,208 1,202 (2,979) 3,458
Other assets 420 1,769 — — 2,189
Total $ 24,338 $ 71,329 $ 4,571 $ (2,979) $ 97,259
Time deposits $ — $ 5,754 $ — $ — $ 5,754
Long-term debt — 391 — — 391
Derivative liabilities 27 5,131 3,002 (2,949) 5,211
Short-term borrowings and other liabilities(a) 475 1,460 — — 1,935
Total $ 502 $ 12,736 $ 3,002 $ (2,949) $ 13,291
December 31, 2023
Available-for-sale securities
U.S. Treasury and agencies $ 14,787 $ 4,755 $ — $ — $ 19,542
Mortgage-backed securities
Residential agency — 26,078 — — 26,078
Commercial
Agency — 7,343 — — 7,343
Non-agency — 6 — — 6
Asset-backed securities — 6,724 — — 6,724
Obligations of state and political subdivisions — 9,989 — — 9,989
Other — 24 — — 24
Total available-for-sale 14,787 54,919 — — 69,706
Mortgage loans held for sale — 2,011 — — 2,011
Mortgage servicing rights — — 3,377 — 3,377
Derivative assets — 5,078 1,453 (3,666) 2,865
Other assets 550 1,991 — — 2,541
Total $ 15,337 $ 63,999 $ 4,830 $ (3,666) $ 80,500
Time Deposits $ — $ 2,818 $ — $ — $ 2,818
Derivative liabilities 16 4,955 3,338 (3,720) 4,589
Short-term borrowings and other liabilities(a) 517 1,786 — — 2,303
Total $ 533 $ 9,559 $ 3,338 $ (3,720) $ 9,710
Note: Excluded from the table above are equity investments without readily determinable fair values. The Company has elected to carry these investments at historical cost, adjusted
for impairment and any changes resulting from observable price changes for identical or similar investments of the issuer. The aggregate carrying amount of these equity investments
was $159 million and $133 million at December 31, 2024 and 2023, respectively, and reflect no impairment or observable price change adjustment at December 31, 2024, compared
with a cumulative impairment of $5 million and no observable price change adjustment at December 31, 2023. The Company recorded a $5 million impairment on these equity
investments during 2023. The Company did not record any adjustments for observable price changes during 2024 and 2023.
(a) Primarily represents the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.

122 U.S. Bancorp 2024 Annual Report

The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis
using significant unobservable inputs (Level 3) for the years ended December 31:

Net Change in
Net Gains Unrealized
Net Gains (Losses) Gains (Losses)
(Losses) Included in Relating to
Beginning Included Other End of Assets and
of Period in Net Comprehensive Principal Period Liabilities Held
(Dollars in Millions) Balance Income Income (Loss) Purchases Sales Payments Issuances Settlements Balance at End of Period

2024
(a) (c) (a)
Mortgage servicing rights $ 3,377 $ (97) $ — $ 1 $ (188) $ — $ 276 $ — $ 3,369 $ (97)
Net derivative assets and
(b) (d)
liabilities (1,885) (3,829) — 1,076 (18) — 1 2,855 (1,800) (492)
2023
Available-for-sale securities
Obligations of state and
political subdivisions $ 1 $ — $ — $ — $ — $ (1) $ — $ — $ — $ —
Total available-for-
sale 1 — — — — (1) — — — —
(a) (c) (a)
Mortgage servicing rights 3,755 (316) — 5 (440) — 373 — 3,377 (316)
Net derivative assets and
(e) (f)
liabilities (3,199) (2,696) — 552 (45) — 1 3,502 (1,885) (183)
2022
Available-for-sale securities
Asset-backed securities $ 7 $ — $ (3) $ — $ (4) $ — $ — $ — $ — $ —
Obligations of state and
political subdivisions 1 — — — — — — — 1 —
Total available-for-
sale 8 — (3) — (4) — — — 1 —
(a) (c) (a)
Mortgage servicing rights 2,953 311 — 156 (255) — 590 — 3,755 311
Net derivative assets and
(g) (h)
liabilities 799 (5,940) — 716 (36) — 11 1,251 (3,199) (3,538)
(a) Included in mortgage banking revenue.
(b) Approximately $200 million, $(3.9) billion and $(147) million included in mortgage banking revenue, commercial products revenue and other non-interest income, respectively.
(c) Represents MSRs capitalized during the period.
(d) Approximately $7 million, $(352) million and $(147) million included in mortgage banking revenue, commercial products revenue and other non-interest income, respectively.
(e) Approximately $182 million, $(2.9) billion and $1 million included in mortgage banking revenue, commercial products revenue and other non-interest income, respectively.
(f) Approximately $15 million, $(199) million and $1 million included in mortgage banking revenue, commercial products revenue and other non-interest income, respectively.
(g) Approximately $(141) million, $(5.6) billion and $(181) million included in mortgage banking revenue, commercial products revenue and other non-interest income, respectively.
(h) Approximately $5 million, $(3.4) billion and $(181) million included in mortgage banking revenue, commercial products revenue and other non-interest income, respectively.

The Company is also required periodically to measure certain other financial assets at fair value on a nonrecurring basis.
These measurements of fair value usually result from the application of lower-of-cost-or-fair value accounting or write-downs of
individual assets.

The following table summarizes the balances as of the measurement date of assets measured at fair value on a nonrecurring
basis, and still held as of December 31:
2024 2023
(Dollars in Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
(a)
Loans $ — $ — $ 636 $ 636 $ — $ — $ 354 $ 354
Other assets(b) — — 25 25 — — 27 27
(a) Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off.
(b) Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial
acquisition.

The following table summarizes losses recognized related to nonrecurring fair value measurements of individual assets or
portfolios for the years ended December 31:

(Dollars in Millions) 2024 2023 2022

Loans(a) $ 399 $ 368 $ 40
Other assets(b) 12 32 20
(a) Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off.
(b) Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition.

123
Fair Value Option
The following table summarizes the differences between the aggregate fair value carrying amount of the assets and liabilities for
which the fair value option has been elected and the aggregate remaining contractual principal balance outstanding as of
December 31:
2024 2023
Carrying Carrying
Amount Over Amount Over
(Under) (Under)
Fair Value Contractual Contractual Fair Value Contractual Contractual
Carrying Principal Principal Carrying Principal Principal
(Dollars in Millions) Amount Outstanding Outstanding Amount Outstanding Outstanding
Total loans(a) $ 2,251 $ 2,243 $ 8 $ 2,011 $ 1,994 $ 17
Time deposits 5,754 5,762 (8) 2,818 2,822 (4)
Long-term debt 391 409 (18) — — —
(a) Includes nonaccrual loans of $1 million carried at fair value with contractual principal outstanding of $1 million at December 31, 2024 and $1 million carried at fair value with
contractual principal outstanding of $1 million at December 31, 2023. Includes loans 90 days or more past due of $4 million carried at fair value with contractual principal
outstanding of $4 million at December 31, 2024 and $4 million carried at fair value with contractual principal outstanding of $4 million at December 31, 2023.

Fair Value of Financial Instruments credit card, merchant processing and trust customers,
other purchased intangibles, premises and equipment,
The following section summarizes the estimated fair value deferred taxes and other liabilities. Additionally, in
for financial instruments accounted for at amortized cost as accordance with the disclosure guidance, receivables and
of December 31, 2024 and 2023. In accordance with payables due in one year or less, insurance contracts,
disclosure guidance related to fair values of financial equity investments not accounted for at fair value, and
instruments, the Company did not include assets and deposits with no defined or contractual maturities are
liabilities that are not financial instruments, such as the excluded.
value of goodwill, long-term relationships with deposit,

The estimated fair values of the Company’s financial instruments as of December 31, are shown in the table below:

2024 2023
Fair Value Fair Value
Carrying Carrying
(Dollars in Millions) Amount Level 1 Level 2 Level 3 Total Amount Level 1 Level 2 Level 3 Total

Financial Assets
Cash and due from banks $56,502 $56,502 $ — $ — $56,502 $61,192 $61,192 $ — $ — $61,192
Federal funds sold and securities
purchased under resale agreements 6,380 — 6,380 — 6,380 2,543 — 2,543 — 2,543
Investment securities held-to-maturity 78,634 1,275 65,000 — 66,275 84,045 1,310 72,778 — 74,088
Loans held for sale(a) 322 — — 322 322 190 — — 190 190
Loans, net of allowance for losses 372,249 — — 365,628 365,628 366,456 — — 362,849 362,849
Other(b) 2,482 — 1,767 715 2,482 2,377 — 1,863 514 2,377
Financial Liabilities
Time deposits(c) 49,015 — 49,156 — 49,156 49,455 — 49,607 — 49,607
(d)
Short-term borrowings 13,583 — 13,419 — 13,419 12,976 — 12,729 — 12,729
(e)
Long-term debt 57,611 — 56,441 — 56,441 51,480 — 49,697 — 49,697
Other(f) 5,220 — 1,369 3,851 5,220 5,432 — 1,406 4,026 5,432
(a) Excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected.
(b) Includes investments in Federal Reserve Bank and Federal Home Loan Bank stock and tax-advantaged investments.
(c) Excludes time deposits for which the fair value option under applicable accounting guidance was elected.
(d) Excludes the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.
(e) Excludes structured long-term notes for which the fair value option under applicable accounting guidance was elected.
(f) Includes operating lease liabilities and liabilities related to tax-advantaged investments.

The fair value of unfunded commitments, deferred non- $376 million and $489 million at December 31, 2024 and
yield related loan fees, standby letters of credit and other 2023, respectively. The carrying value of other guarantees
guarantees is approximately equal to their carrying value. was $194 million and $198 million at December 31, 2024
The carrying value of unfunded commitments, deferred and 2023, respectively.
non-yield related loan fees and standby letters of credit was

124 U.S. Bancorp 2024 Annual Report

NOTE 22 Guarantees and Contingent Liabilities
Visa Restructuring and Card Association Litigation The policies it applies to loans. Collateral is obtained to secure
Company’s Payment Services business issues credit and commitments based on management’s credit assessment
debit cards and acquires credit and debit card transactions of the borrower. The collateral may include marketable
through the Visa U.S.A. Inc. card association or its affiliates securities, receivables, inventory, equipment and real
(collectively “Visa”). In 2007, Visa completed a restructuring estate. Since the Company expects many of the
and issued shares of Visa Inc. common stock to its financial commitments to expire without being drawn, total
institution members in contemplation of its initial public commitment amounts do not necessarily represent the
offering (“IPO”) completed in the first quarter of 2008 (the Company’s future liquidity requirements. In addition, the
“Visa Reorganization”). As a part of the Visa commitments include consumer credit lines that are
Reorganization, the Company received its proportionate cancelable upon notification to the consumer.
number of shares of Visa Inc. common stock, which were
The contract or notional amounts of unfunded commitments
subsequently converted to Class B shares of Visa Inc.
to extend credit at December 31, 2024, excluding those
(“Class B shares”). As of December 31, 2024, the Company
commitments considered derivatives, were as follows:
has sold substantially all of its Class B shares.
Visa U.S.A. Inc. (“Visa U.S.A.”) and MasterCard Term
International (collectively, the “Card Brands”) are
defendants in antitrust lawsuits challenging the practices of Greater
Less Than Than One
the Card Brands (the “Visa Litigation”). Visa U.S.A. member (Dollars in Millions) One Year Year Total
banks have a contingent obligation to indemnify Visa Inc.
Commercial and
under the Visa U.S.A. bylaws (which were modified at the commercial real estate
time of the restructuring in October 2007) for potential loans $ 46,760 $138,973 $185,733
losses arising from the Visa Litigation. The indemnification Corporate and purchasing
by the Visa U.S.A. member banks has no specific maximum card loans(a) 35,687 — 35,687
amount. Using proceeds from its IPO and through
Residential mortgages 226 — 226
reductions to the conversion ratio applicable to the Class B
(a)
shares held by Visa U.S.A. member banks, Visa Inc. has Retail credit card loans 137,404 — 137,404
funded an escrow account for the benefit of member Other retail loans 16,460 26,145 42,605
financial institutions to fund their indemnification obligations Other 7,736 — 7,736
associated with the Visa Litigation. The receivable related
(a) Primarily cancellable at the Company’s discretion.
to the escrow account is classified in other liabilities and
fully offsets the related Visa Litigation contingent liability.
In October 2012, Visa signed a settlement agreement to Other Guarantees and Contingent
resolve merchant class action claims associated with the Liabilities
multidistrict interchange litigation pending in the United
The following table is a summary of other guarantees and
States District Court for the Eastern District of New York (the
contingent liabilities of the Company at December 31,
“Multi-District Litigation”). The U.S. Court of Appeals for the
2024:
Second Circuit reversed the approval of that settlement and
remanded the matter to the district court. Thereafter, the Maximum
Potential
case was split into two putative class actions, one seeking Collateral Carrying Future
damages (the “Damages Action”) and a separate class (Dollars in Millions) Held Amount Payments

action seeking injunctive relief only (the “Injunctive Action”). Standby letters of credit $ — $ 23 $ 10,522
The Damages Action was settled and is fully resolved. A Third party borrowing
number of merchants opted out of the Damages Action arrangements — — 1
class settlement and filed individual cases in various Securities lending
federal district courts. Some of those cases have been indemnifications 6,862 — 6,681
settled and others are still being litigated. In March 2024, Asset sales — 112 12,650
Visa signed a settlement agreement to resolve the
Merchant processing 816 61 144,713
Injunctive Action. In June 2024, the court declined to grant
preliminary approval of the proposed settlement, which Other — 21 3,245
provided for lower interchange fees and various other rule
changes for U.S. merchants. Accordingly, the Injunctive Letters of Credit Standby letters of credit are commitments
Action continues. the Company issues to guarantee the performance of a
customer to a third party. The guarantees frequently
Commitments to Extend Credit Commitments to extend support public and private borrowing arrangements,
credit are legally binding and generally have fixed including commercial paper issuances, bond financings
expiration dates or other termination clauses. The and other similar transactions. The Company also issues
contractual amount represents the Company’s exposure to and confirms commercial letters of credit on behalf of
credit loss, in the event of default by the borrower. The customers to ensure payment or collection in connection
Company manages this credit risk by using the same credit with trade transactions. In the event of a customer’s or

125
counterparty’s nonperformance, the Company’s credit loss syndication of certain assets, primarily loan portfolios and
exposure is similar to that in any extension of credit, up to tax-advantaged investments. These guarantees are
the letter’s contractual amount. Management assesses the generally in the form of asset buy-back or make-whole
borrower’s credit to determine the necessary collateral, provisions that are triggered upon a credit event or a
which may include marketable securities, receivables, change in the tax-qualifying status of the related projects,
inventory, equipment and real estate. Since the conditions as applicable, and remain in effect until the loans are
requiring the Company to fund letters of credit may not collected or final tax credits are realized, respectively. The
occur, the Company expects its liquidity requirements to be maximum potential future payments guaranteed by the
less than the total outstanding commitments. The maximum Company under these arrangements were approximately
potential future payments guaranteed by the Company $12.7 billion at December 31, 2024, and represented the
under standby letter of credit arrangements at proceeds received from the buyer or the guaranteed
December 31, 2024, were approximately $10.5 billion with portion in these transactions where the buy-back or make-
a weighted-average term of approximately 14 months. The whole provisions have not yet expired. At December 31,
estimated fair value of standby letters of credit was 2024, the Company had reserved $103 million for potential
approximately $23 million at December 31, 2024. losses related to the sale or syndication of tax-advantaged
investments.
The contract or notional amount of letters of credit at The maximum potential future payments do not include
December 31, 2024, were as follows: loan sales where the Company provides standard
Term representations and warranties to the buyer against losses
Greater related to loan underwriting documentation defects that
Less Than Than One may have existed at the time of sale that generally are
(Dollars in Millions) One Year Year Total
identified after the occurrence of a triggering event such as
Standby $ 7,105 $ 3,417 $ 10,522 delinquency. For these types of loan sales, the maximum
Commercial 441 21 462 potential future payments is generally the unpaid principal
balance of loans sold measured at the end of the current
Guarantees Guarantees are contingent commitments reporting period. Actual losses will be significantly less than
issued by the Company to customers or other third parties. the maximum exposure, as only a fraction of loans sold will
The Company’s guarantees primarily include parent have a representation and warranty breach, and any losses
guarantees related to subsidiaries’ third party borrowing on repurchase would generally be mitigated by any
arrangements; third party performance guarantees inherent collateral held against the loans.
in the Company’s business operations, such as indemnified The Company regularly sells loans to GSEs as part of its
securities lending programs and merchant charge-back mortgage banking activities. The Company provides
guarantees; and indemnification or buy-back provisions customary representations and warranties to GSEs in
related to certain asset sales. For certain guarantees, the conjunction with these sales. These representations and
Company has recorded a liability related to the potential warranties generally require the Company to repurchase
obligation, or has access to collateral to support the assets if it is subsequently determined that a loan did not
guarantee or through the exercise of other recourse meet specified criteria, such as a documentation deficiency
provisions can offset some or all of the maximum potential or rescission of mortgage insurance. If the Company is
future payments made under these guarantees. unable to cure or refute a repurchase request, the
Company is generally obligated to repurchase the loan or
Third Party Borrowing Arrangements The Company
otherwise reimburse the GSE for losses. At December 31,
provides guarantees to third parties as a part of certain
2024, the Company had reserved $9 million for potential
subsidiaries’ borrowing arrangements. The maximum
losses from representation and warranty obligations,
potential future payments guaranteed by the Company
compared with $13 million at December 31, 2023. The
under these arrangements were approximately $1 million at
Company’s reserve reflects management’s best estimate of
December 31, 2024.
losses for representation and warranty obligations. The
Commitments from Securities Lending The Company Company’s repurchase reserve is modeled at the loan
participates in securities lending activities by acting as the level, taking into consideration the individual credit quality
customer’s agent involving the loan of securities. The and borrower activity that has transpired since origination.
Company indemnifies customers for the difference between The model applies credit quality and economic risk factors
the fair value of the securities lent and the fair value of the to derive a probability of default and potential repurchase
collateral received. Cash collateralizes these transactions. that are based on the Company’s historical loss
The maximum potential future payments guaranteed by the experience, and estimates loss severity based on expected
Company under these arrangements were approximately collateral value. The Company also considers qualitative
$6.7 billion at December 31, 2024, and represent the fair factors that may result in anticipated losses differing from
value of the securities lent to third parties. At December 31, historical loss trends.
2024, the Company held $6.9 billion of cash as collateral As of December 31, 2024 and 2023, the Company had
for these arrangements. $15 million and $18 million, respectively, of unresolved
representation and warranty claims from GSEs. The
Asset Sales The Company has provided guarantees to
certain third parties in connection with the sale or

126 U.S. Bancorp 2024 Annual Report

Company does not have a significant amount of unresolved assets related to these airline processing arrangements. In
claims from investors other than GSEs. addition to specific collateral or other credit enhancements,
the Company maintains a liability for its implied guarantees
Merchant Processing The Company, through its
associated with future delivery. At December 31, 2024, the
subsidiaries, provides merchant processing services.
liability was $40 million primarily related to these airline
Under the rules of credit card associations, a merchant
processing arrangements.
processor retains a contingent liability for credit card
In the normal course of business, the Company has
transactions processed. This contingent liability arises in
unresolved charge-backs. The Company assesses the
the event of a billing dispute between the merchant and a
likelihood of its potential liability based on the extent and
cardholder that is ultimately resolved in the cardholder’s
nature of unresolved charge-backs and its historical loss
favor. In this situation, the transaction is “charged-back” to
experience. At December 31, 2024, the Company held
the merchant and the disputed amount is credited or
$127 million of merchant escrow deposits as collateral and
otherwise refunded to the cardholder. If the Company is
had a recorded liability for potential losses of $21 million
unable to collect this amount from the merchant, it bears
related to these charge-backs.
the loss for the amount of the refund paid to the cardholder.
A cardholder, through its issuing bank, generally has Tender Option Bond Program Guarantee As discussed in
until the later of up to four months after the date the Note 7, the Company previously sponsored a municipal
transaction is processed or the receipt of the product or bond securities tender option bond program and
service to present a charge-back to the Company as the consolidated the program’s entities on its Consolidated
merchant processor. The absolute maximum potential Balance Sheet. The Company provided financial
liability is estimated to be the total volume of credit card performance guarantees related to the program’s entities.
transactions that meet the associations’ requirements to be During 2024, the Company ended this arrangement,
valid charge-back transactions at any given time. effectively eliminating any outstanding related guarantees.
Management estimates that the maximum potential
Other Guarantees and Commitments As of December 31,
exposure for charge-backs would approximate the total
2024, the Company sponsored, and owned 100 percent of
amount of merchant transactions processed through the
the common equity of, USB Capital IX, a wholly-owned
credit card associations for the last four months. For the last
unconsolidated trust, formed for the purpose of issuing
four months of 2024 this amount totaled approximately
redeemable Income Trust Securities (“ITS”) to third-party
$144.7 billion. In most cases, this contingent liability is
investors, originally investing the proceeds in junior
unlikely to arise, as most products and services are
subordinated debt securities (“Debentures”) issued by the
delivered when purchased and amounts are refunded
Company and entering into stock purchase contracts to
when items are returned to merchants. However, where the
purchase the Company’s preferred stock in the future. As of
product or service has been purchased but is not provided
December 31, 2024, all of the Debentures issued by the
until a future date (“future delivery”), the potential for this
Company have either matured or been retired. Total assets
contingent liability increases. To mitigate this risk, the
of USB Capital IX were $685 million at December 31, 2024,
Company may require the merchant to make an escrow
consisting primarily of the Company’s Series A Preferred
deposit, place maximum volume limitations on future
Stock. The Company’s obligations under the transaction
delivery transactions processed by the merchant at any
documents, taken together, have the effect of providing a
point in time, or require various credit enhancements
full and unconditional guarantee by the Company, on a
(including letters of credit and bank guarantees). Also,
junior subordinated basis, of the payment obligations of the
merchant processing contracts may include event triggers
trust to third-party investors totaling $684 million at
to provide the Company more financial and operational
December 31, 2024.
control in the event of financial deterioration of the
The Company has also made other financial
merchant.
performance guarantees and commitments primarily
The Company currently processes card transactions in
related to the operations of its subsidiaries. At
the United States, Canada and Europe through wholly-
December 31, 2024, the maximum potential future
owned subsidiaries. In the event a merchant was unable to
payments guaranteed or committed by the Company under
fulfill product or services subject to future delivery, such as
these arrangements were approximately $2.6 billion.
airline tickets, the Company could become financially liable
for refunding the purchase price of such products or
services purchased through the credit card associations
Litigation and Regulatory Matters
under the charge-back provisions. Charge-back risk The Company is subject to various litigation and regulatory
related to these merchants is evaluated in a manner similar matters that arise from the conduct of its business activities.
to credit risk assessments and, as such, merchant The Company establishes reserves for such matters when
processing contracts contain various provisions to protect potential losses become probable and can be reasonably
the Company in the event of default. At December 31, estimated. The Company believes the ultimate resolution of
2024, the value of airline tickets purchased to be delivered existing legal and regulatory matters will not have a material
at a future date through card transactions processed by the adverse effect on the financial condition, results of
Company was $12.0 billion. The Company held collateral of operations or cash flows of the Company. However, in light
$689 million in escrow deposits, letters of credit and of the uncertainties inherent in these matters, it is possible
indemnities from financial institutions, and liens on various that the ultimate resolution of one or more of these matters

127
may have a material adverse effect on the Company’s advised by an investment adviser who engaged in fraud,
results of operations for a particular period, and future and USBFS was not affiliated with the investment adviser
changes in circumstances or additional information could and did not provide any advisory services to the fund. The
result in additional accruals or resolution in excess of Division of Enforcement made a preliminary determination
established accruals, which could adversely affect the to recommend that the SEC file an enforcement action
Company’s results of operations, potentially materially. against USBFS, and USBFS has engaged in discussions
with the SEC on this matter. The Company is cooperating
Residential Mortgage-Backed Securities Litigation
fully with all pending examinations, inquiries and
Starting in 2011, the Company and other large financial
investigations, any of which could lead to administrative or
institutions have been sued in their capacity as trustee for
legal proceedings or settlements. Remedies in these
residential mortgage–backed securities trusts for losses
proceedings or settlements may include fines, penalties,
arising out of the 2008 financial crisis. In the lawsuits
restitution or alterations in the Company’s business
brought against the Company, the investors allege that the
practices (which may increase the Company’s operating
Company’s banking subsidiary, USBNA, as trustee caused
expenses and decrease its revenue).
them to incur substantial losses by failing to enforce loan
repurchase obligations and failing to abide by appropriate Outlook Due to their complex nature, it can be years
standards of care after events of default allegedly before litigation and regulatory matters are resolved. The
occurred. The plaintiffs in these matters seek monetary Company may be unable to develop an estimate or range
damages in unspecified amounts and most also seek of loss where matters are in early stages, there are
equitable relief. significant factual or legal issues to be resolved, damages
are unspecified or uncertain, or there is uncertainty as to a
Regulatory Matters The Company is continually subject to litigation class being certified or the outcome of pending
examinations, inquiries, investigations and other forms of motions, appeals or proceedings. For those litigation and
regulatory and governmental inquiry or scrutiny covering a regulatory matters where the Company has information to
wide range of issues in its financial services businesses develop an estimate or range of loss, the Company
including in areas of heightened regulatory scrutiny, such believes the upper end of the range of reasonably possible
as compliance, risk management, third-party risk losses in aggregate, in excess of any reserves established
management and consumer protection. In some cases, for matters where a loss is considered probable, will not be
these matters are part of reviews of specified activities at material to its financial condition, results of operations or
multiple industry participants; in others, they are directed at cash flows. The Company’s estimates are subject to
the Company individually. For example, the Division of significant judgment and uncertainties, and the matters
Enforcement of the SEC has investigated U.S. Bancorp underlying the estimates will change from time to time.
Fund Services, LLC (“USBFS”), a subsidiary of USBNA, Actual results may vary significantly from the current
relating to its role providing fund administration services to estimates.
a third-party investment fund. This investment fund was

NOTE 23 Business Segments

The Company's management reporting is organized into services to wealth, middle market, large corporate,
three reportable operating segments aligned by major lines commercial real estate, government and institutional
of business based on the products and services provided clients.
to customers through its distribution channels. All other
Consumer and Business Banking Consumer and
business activities not included in the reportable operating
Business Banking comprises consumer banking, small
segments are included in the Treasury and Corporate
business banking and consumer lending. Products and
Support business segment. The chief operating decision
services are delivered through banking offices, telephone
maker uses net interest income on a taxable-equivalent
servicing and sales, online services, direct mail, ATMs,
basis, noninterest income and net income (loss) before
mobile devices, distributed mortgage loan officers, and
income taxes for all reportable segments in deciding how to
intermediary relationships including auto dealerships,
allocate resources during the annual budget and monthly
mortgage banks, and strategic business partners.
forecasting process. The chief operating decision maker
considers variances in reported results to forecasts and Payment Services Payment Services includes consumer
variances to prior periods to assess performance. The and business credit cards, stored-value cards, debit cards,
Company’s chief operating decision maker is the Chief corporate, government and purchasing card services and
Executive Officer. The Company has the following merchant processing.
reportable operating and other business segments:
Treasury and Corporate Support Treasury and Corporate
Wealth, Corporate, Commercial and Institutional Support includes the Company’s investment portfolios,
Banking Wealth, Corporate, Commercial and Institutional funding, capital management, interest rate risk
Banking provides core banking, specialized lending, management, income taxes not allocated to business
transaction and payment processing, capital markets, asset segments, including most investments in tax-advantaged
management, and brokerage and investment related projects, and the residual aggregate of those expenses

128 U.S. Bancorp 2024 Annual Report

associated with corporate activities that are managed on a Occupancy costs are allocated based on utilization of
consolidated basis. facilities by the business segments. Generally, operating
losses are charged to the business segment when the loss
Basis of Presentation Business segment results are
event is realized in a manner similar to a loan charge-off.
derived from the Company’s business unit profitability
Noninterest expenses incurred by centrally managed
reporting systems by specifically attributing managed
operations or business segments that directly support
balance sheet assets, deposits and other liabilities and
another business segment’s operations are charged to the
their related income or expense. The allowance for credit
applicable business segment based on its utilization of
losses and related provision expense are allocated to the
those services, primarily measured by the volume of
business segments according to the volume and credit
customer activities, number of employees or other relevant
quality of the loan balances managed, but with the impact
factors. These allocated expenses are reported as net
of changes in economic forecasts recorded in Treasury and
shared services expense within noninterest expense.
Corporate Support. Goodwill and other intangible assets
Certain activities that do not directly support the operations
are assigned to the business segments based on the mix of
of the business segments or for which the business
business of an entity acquired by the Company. Within the
segments are not considered financially accountable in
Company, capital levels are evaluated and managed
evaluating their performance are not charged to the
centrally; however, capital is allocated to the business
business segments. The income or expenses associated
segments to support evaluation of business performance.
with these corporate activities, including merger and
Business segments are allocated capital on a risk-adjusted
integration charges, are reported within the Treasury and
basis considering economic and regulatory capital
Corporate Support business segment. Income taxes are
requirements. Generally, the determination of the amount of
assessed to each business segment at a standard tax rate
capital allocated to each business segment includes credit
with the residual tax expense or benefit to arrive at the
allocations following a Basel III regulatory framework.
consolidated effective tax rate included in Treasury and
Interest income and expense is determined based on the
Corporate Support.
assets and liabilities managed by the business segment.
Designations, assignments and allocations change from
Because funding and asset/liability management is a
time to time as management systems are enhanced,
central function, funds transfer-pricing methodologies are
methods of evaluating performance or product lines
utilized to allocate a cost of funds used or credit for funds
change or business segments are realigned to better
provided to all business segment assets and liabilities,
respond to the Company’s diverse customer base. During
respectively, using a matched funding concept. Also, each
2024 and 2023, certain organization and methodology
business unit is allocated the taxable-equivalent benefit of
changes were made, including revising the Company’s
tax-exempt products. The residual effect on net interest
business segment funds transfer-pricing methodology
income of asset/liability management activities is included
related to deposits and loans during the second quarter of
in Treasury and Corporate Support. Noninterest income
2024 and combining its Wealth Management and
and expenses directly managed by each business
Investment Services and Corporate and Commercial
segment, including fees, service charges, salaries and
Banking business segments to create the Wealth,
benefits, and other direct revenues and costs are
Corporate, Commercial and Institutional Banking business
accounted for within each segment’s financial results in a
segment during the third quarter of 2023. Prior period
manner similar to the consolidated financial statements.
results were recast and presented on a comparable basis.

129
Condensed income statement results by business segment for the years ended December 31 were as follows:
Wealth, Corporate, Commercial and
Institutional Banking Consumer and Business Banking Payment Services
(Dollars in Millions) 2024 2023 2022 2024 2023 2022 2024 2023 2022
Net interest income (taxable-equivalent
basis)(a) $ 7,645 $ 7,862 $ 5,680 $ 7,658 $ 8,683 $ 7,266 $ 2,831 $ 2,609 $ 2,504
Noninterest income(b)(c) 4,548 4,141 3,561 1,606 1,675 1,536 4,198 4,055 3,794
Total net revenue 12,193 12,003 9,241 9,264 10,358 8,802 7,029 6,664 6,298
Compensation and employee benefits 2,191 2,151 1,803 2,221 2,305 2,041 906 869 835
Other intangibles 206 230 37 266 292 42 97 114 136
Net shared services 2,116 2,132 1,547 2,800 2,956 2,655 2,126 2,017 1,656
(d)
Other direct expenses 936 931 748 1,282 1,316 1,041 926 920 898
Total noninterest expense 5,449 5,444 4,135 6,569 6,869 5,779 4,055 3,920 3,525
Income (loss) before provision and
income taxes 6,744 6,559 5,106 2,695 3,489 3,023 2,974 2,744 2,773
Provision for credit losses 385 340 154 182 78 75 1,614 1,394 980
Income (loss) before income taxes 6,359 6,219 4,952 2,513 3,411 2,948 1,360 1,350 1,793
Income taxes and taxable-equivalent
adjustment 1,590 1,555 1,239 629 854 738 340 337 448
Net income (loss) 4,769 4,664 3,713 1,884 2,557 2,210 1,020 1,013 1,345
Net (income) loss attributable to
noncontrolling interests — — — — — — — — —
Net income (loss) attributable to U.S.
Bancorp $ 4,769 $ 4,664 $ 3,713 $ 1,884 $ 2,557 $ 2,210 $ 1,020 $ 1,013 $ 1,345

Treasury and Corporate Support Consolidated Company

(Dollars in Millions) 2024 2023 2022 2024 2023 2022

Net interest income (taxable-equivalent

basis)(a) $ (1,725) $ (1,627) $ (604) $ 16,409 $ 17,527 $ 14,846
Noninterest income(b)(c) 694 746 565 11,046 10,617 9,456
Total net revenue (1,031) (881) (39) 27,455 28,144 24,302
Compensation and employee benefits 5,236 5,091 4,478 10,554 10,416 9,157
Other intangibles — — — 569 636 215
Net shared services (7,042) (7,105) (5,858) — — —
Other direct expenses(d) 2,921 4,654 2,847 6,065 7,821 5,534
Total noninterest expense 1,115 2,640 1,467 17,188 18,873 14,906
Income (loss) before provision and
income taxes (2,146) (3,521) (1,506) 10,267 9,271 9,396
Provision for credit losses 57 463 768 2,238 2,275 1,977
Income (loss) before income taxes (2,203) (3,984) (2,274) 8,029 6,996 7,419
Income taxes and taxable-equivalent
adjustment (859) (1,208) (844) 1,700 1,538 1,581
Net income (loss) (1,344) (2,776) (1,430) 6,329 5,458 5,838
Net (income) loss attributable to
noncontrolling interests (30) (29) (13) (30) (29) (13)
Net income (loss) attributable to U.S.
Bancorp $ (1,374) $ (2,805) $ (1,443) $ 6,299 $ 5,429 $ 5,825
(a) Total net interest income includes a taxable-equivalent adjustment of $120 million, $131 million and $118 million for 2024, 2023 and 2022, respectively. See Non-GAAP Financial
Measures beginning on page 57.
(b) Payment services noninterest income presented net of related rewards and rebate costs and certain partner payments of $3.1 billion, $3.0 billion and $2.9 billion for 2024, 2023 and
2022, respectively.
(c) Total noninterest income includes revenue generated from certain contracts with customers of $9.2 billion, $8.8 billion and $8.0 billion for 2024, 2023 and 2022, respectively.
(d) Other direct expenses for each reportable segment includes: net occupancy and equipment, professional services, marketing and business development, technology and
communications, and other.

130 U.S. Bancorp 2024 Annual Report

Average balances by business segment for the years ended December 31 were as follows:
Wealth, Corporate, Commercial and
Institutional Banking Consumer and Business Banking Payment Services
(Dollars in Millions) 2024 2023 2022 2024 2023 2022 2024 2023 2022

Loans $172,466 $175,836 $150,512 $155,088 $162,012 $144,441 $ 41,081 $ 38,471 $ 34,627
Other earning assets 10,122 6,613 4,771 2,410 2,388 3,117 142 97 634
Goodwill 4,825 4,682 3,634 4,326 4,466 3,250 3,357 3,327 3,305
Other intangible assets 981 1,007 365 4,539 5,264 3,784 277 352 423
Assets 201,362 202,701 169,554 168,913 179,247 160,174 47,169 44,291 41,072
Noninterest-bearing deposits 56,760 70,908 82,671 20,810 30,967 31,719 2,685 2,981 3,410
Interest-bearing deposits 214,622 203,038 175,345 200,611 185,712 163,190 96 103 162
Total deposits 271,382 273,946 258,016 221,421 216,679 194,909 2,781 3,084 3,572
Total U.S. Bancorp shareholders’
equity 21,438 22,366 18,159 14,426 16,026 12,678 10,005 9,310 8,233

Treasury and Corporate Support Consolidated Company

(Dollars in Millions) 2024 2023 2022 2024 2023 2022

Loans $ 5,240 $ 4,956 $ 3,993 $373,875 $381,275 $333,573

Other earning assets 220,092 214,826 203,248 232,766 223,924 211,770
Goodwill — — — 12,508 12,475 10,189
Other intangible assets 9 16 5 5,806 6,639 4,577
Assets 246,570 237,201 221,349 664,014 663,440 592,149
Noninterest-bearing deposits 2,752 2,912 2,594 83,007 107,768 120,394
Interest-bearing deposits 11,179 9,042 3,293 426,508 397,895 341,990
Total deposits 13,931 11,954 5,887 509,515 505,663 462,384
Total U.S. Bancorp shareholders’
equity 11,337 5,958 11,346 57,206 53,660 50,416

131
NOTE 24 U.S. Bancorp (Parent Company)

Condensed Balance Sheet

At December 31 (Dollars in Millions) 2024 2023

Assets
Due from banks, principally interest-bearing $ 9,377 $ 11,585
Available-for-sale investment securities 649 662
Investments in bank subsidiaries 63,680 61,495
Investments in nonbank subsidiaries 4,031 3,884
Advances to bank subsidiaries 16,100 12,100
Advances to nonbank subsidiaries 401 159
Other assets 945 974
Total assets $ 95,183 $ 90,859
Liabilities and Shareholders’ Equity
Long-term debt $ 35,257 $ 34,332
Other liabilities 1,348 1,221
Shareholders’ equity 58,578 55,306
Total liabilities and shareholders’ equity $ 95,183 $ 90,859

Condensed Income Statement

Year Ended December 31 (Dollars in Millions) 2024 2023 2022

Income
Dividends from bank subsidiaries $ 4,800 $ 4,869 $ 4,750
Dividends from nonbank subsidiaries 11 11 105
Interest from subsidiaries 1,224 606 119
Other income 24 51 31
Total income 6,059 5,537 5,005
Expense
Interest expense 1,663 1,336 505
Other expense 178 137 162
Total expense 1,841 1,473 667
Income before income taxes and equity in undistributed income of subsidiaries 4,218 4,064 4,338
Applicable income taxes (95) (170) (138)
Income of parent company 4,313 4,234 4,476
Equity in undistributed income of subsidiaries 1,986 1,195 1,349
Net income attributable to U.S. Bancorp $ 6,299 $ 5,429 $ 5,825

132 U.S. Bancorp 2024 Annual Report

Condensed Statement of Cash Flows
Year Ended December 31 (Dollars in Millions) 2024 2023 2022

Operating Activities
Net income attributable to U.S. Bancorp $ 6,299 $ 5,429 $ 5,825
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed income of subsidiaries (1,986) (1,195) (1,349)
Other, net 385 83 (398)
Net cash provided by operating activities 4,698 4,317 4,078
Investing Activities
Proceeds from sales and maturities of investment securities 11 25 423
Investments in subsidiaries — — (5,030)
Net (increase) decrease in short-term advances to subsidiaries (242) (9) 557
Long-term advances to subsidiaries (5,500) (7,500) (2,000)
Principal collected on long-term advances to subsidiaries 1,500 4,500 2,500
Cash paid for acquisition — — (5,500)
Other, net 16 172 (173)
Net cash used in investing activities (4,215) (2,812) (9,223)
Financing Activities
Proceeds from issuance of long-term debt 6,516 8,150 8,150
Principal payments or redemption of long-term debt (5,618) (936) (2,300)
Proceeds from issuance of preferred stock — — 437
Proceeds from issuance of common stock 32 951 21
Repurchase of preferred stock — — (1,100)
Repurchase of common stock (173) (62) (69)
Cash dividends paid on preferred stock (356) (341) (299)
Cash dividends paid on common stock (3,092) (2,970) (2,776)
Net cash provided by (used in) financing activities (2,691) 4,792 2,064
Change in cash and due from banks (2,208) 6,297 (3,081)
Cash and due from banks at beginning of year 11,585 5,288 8,369
Cash and due from banks at end of year $ 9,377 $ 11,585 $ 5,288

Transfer of funds (dividends, loans or advances) from Dividend payments to the Company by its subsidiary
bank subsidiaries to the Company is restricted. Federal law bank are subject to regulatory review and statutory
requires loans to the Company or its affiliates to be secured limitations and, in some instances, regulatory approval. In
and generally limits loans to the Company or an individual general, dividends by the Company’s bank subsidiary to
affiliate to 10 percent of each bank’s unimpaired capital the parent company are limited by rules which compare
and surplus. In the aggregate, loans to the Company and dividends to net income for regulatorily-defined periods.
all affiliates cannot exceed 20 percent of each bank’s Furthermore, dividends are restricted by minimum capital
unimpaired capital and surplus. constraints for all national banks.

NOTE 25 Subsequent Events

The Company has evaluated the impact of events that have occurred subsequent to December 31, 2024 through the date the
consolidated financial statements were filed with the SEC. Based on this evaluation, the Company has determined none of these
events were required to be recognized or disclosed in the consolidated financial statements and related notes.

133
U.S. Bancorp
Consolidated Daily Average Balance Sheet and Related Yields and Rates(a) (Unaudited)
2024 2023 2022
Yields Yields Yields
Year Ended December 31 Average and Average and Average and
(Dollars in Millions) Balances Interest Rates Balances Interest Rates Balances Interest Rates
Assets
Investment securities(b) $ 166,634 $ 5,189 3.11 % $ 162,757 $ 4,566 2.81 % $ 169,442 $ 3,457 2.04 %
Loans held for sale 2,539 173 6.82 2,461 147 5.98 3,829 201 5.26
Loans(c)
Commercial 133,412 8,717 6.53 134,883 8,662 6.42 123,797 4,340 3.51
Commercial real estate 51,657 3,326 6.44 54,646 3,384 6.19 41,098 1,655 4.03
Residential mortgages 117,026 4,577 3.91 115,922 4,305 3.71 84,749 2,775 3.27
Credit card 28,683 3,815 13.30 26,570 3,429 12.91 23,478 2,583 11.00
Other retail 43,097 2,619 6.08 49,254 2,599 5.28 60,451 2,292 3.79
Total loans 373,875 23,054 6.17 381,275 22,379 5.87 333,573 13,645 4.09
Interest-bearing deposits with banks 51,215 2,744 5.36 49,000 2,581 5.27 31,425 559 1.78
Other earning assets 12,378 629 5.08 9,706 471 4.85 7,074 204 2.89
Total earning assets 606,641 31,789 5.24 605,199 30,144 4.98 545,343 18,066 3.31
Allowance for loan losses (7,541) (7,138) (5,880)
Unrealized gain (loss) on investment securities (6,820) (7,985) (6,914)
Other assets 71,734 73,364 59,600
Total assets $ 664,014 $ 663,440 $ 592,149
Liabilities and Shareholders’ Equity
Noninterest-bearing deposits $ 83,007 $ 107,768 $ 120,394
Interest-bearing deposits
Interest checking 125,365 1,505 1.20 129,341 1,334 1.03 117,471 277 .24
Money market savings 204,509 7,580 3.71 166,272 5,654 3.40 126,221 1,220 .97
Savings accounts 39,625 165 .42 55,590 90 .16 67,722 10 .02
Time deposits 57,009 2,438 4.28 46,692 1,697 3.63 30,576 365 1.19
Total interest-bearing deposits 426,508 11,688 2.74 397,895 8,775 2.21 341,990 1,872 .55
Short-term borrowings
Federal funds purchased 330 16 4.88 435 21 4.72 687 8 1.12
Securities sold under agreements to repurchase 6,658 326 4.89 3,103 125 4.04 2,037 20 1.00
Commercial paper 6,718 258 3.85 7,800 268 3.44 7,186 69 .96
Other short-term borrowings(d) 3,495 509 14.56 22,803 1,563 6.85 15,830 471 2.98
Total short-term borrowings 17,201 1,109 6.45 34,141 1,977 5.79 25,740 568 2.21
Long-term debt 54,473 2,583 4.74 44,142 1,865 4.22 33,114 780 2.35
Total interest-bearing liabilities 498,182 15,380 3.09 476,178 12,617 2.65 400,844 3,220 .80
Other liabilities 25,157 25,369 20,029
Shareholders’ equity
Preferred equity 6,808 6,808 6,761
Common equity 50,398 46,852 43,655
Total U.S. Bancorp shareholders’ equity 57,206 53,660 50,416
Noncontrolling interests 462 465 466
Total equity 57,668 54,125 50,882
Total liabilities and equity $ 664,014 $ 663,440 $ 592,149
Net interest income $ 16,409 $ 17,527 $ 14,846
Gross interest margin 2.15% 2.33% 2.51%
Gross interest margin without taxable-equivalent
increments 2.13% 2.31% 2.49%
Percent of Earning Assets
Interest income 5.24% 4.98% 3.31%
Interest expense 2.54 2.08 .59
Net interest margin 2.70% 2.90% 2.72%
Net interest margin without taxable-equivalent increments 2.68% 2.88% 2.70%

(a) Interest and rates are presented on a fully taxable-equivalent basis based on a federal income tax rate of 21 percent.
(b) Yields on investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at
fair value from available-for-sale to held-to-maturity. Yields include impacts of hedge accounting, including portfolio level basis adjustments.
(c) Interest income and rates on loans include loan fees. Nonaccrual loans are included in average loan balances.
(d) Interest expense and rates includes interest paid on collateral associated with derivative positions.

134 U.S. Bancorp 2024 Annual Report

U.S. Bancorp
Supplemental Financial Data (Unaudited)
Earnings Per Common Share Summary 2024 2023 2022

Earnings per common share $ 3.79 $ 3.27 $ 3.69

Diluted earnings per common share 3.79 3.27 3.69
Dividends declared per common share 1.98 1.93 1.88
Other Statistics (Dollars and Shares in Millions)

Common shares outstanding(a) 1,560 1,558 1,531

Average common shares outstanding and common stock equivalents
Earnings per common share 1,560 1,543 1,489
Diluted earnings per common share 1,561 1,543 1,490
Number of shareholders(b) 27,517 29,094 30,280
Common dividends declared $ 3,110 $ 3,000 $ 2,829
(a) Defined as total common shares issued less common stock held in treasury at December 31.
(b) Based on number of common stock shareholders of record at December 31.

The common stock of U.S. Bancorp is traded on the New York Stock Exchange, under the ticker symbol “USB.” At January 31,
2025, there were 27,433 holders of record of the Company’s common stock.

Stock Performance Chart

The following chart compares the cumulative total shareholder return on the Company’s common stock during the five years
ended December 31, 2024, with the cumulative total return on the Standard & Poor’s 500 Index and the KBW Bank Index. The
comparison assumes $100 was invested on December 31, 2019, in the Company’s common stock and in each of the foregoing
indices and assumes the reinvestment of all dividends. The comparisons in the graph are based upon historical data and are not
indicative of, nor intended to forecast, future performance of the Company’s common stock.

Total Return
240

220

200

180

160
140

120

100

80
2019 2020 2021 2022 2023 2024

USB S&P 500 KBW Bank Index (BKX)

2019 2020 2021 2022 2023 2024

USB 100 82 102 83 87 100

S&P 500 100 118 152 125 157 197
BKX 100 90 124 98 97 133

135
Company Information and purchasing card services and corporate trust services
in the United States. The Company’s subsidiaries provide
General Business Description U.S. Bancorp is a financial domestic merchant processing services directly to
services holding company headquartered in Minneapolis, merchants, as well as similar merchant services in Canada
Minnesota, serving millions of local, national and global and segments of Europe. The Company also provides
customers. U.S. Bancorp is registered as a bank holding corporate trust and fund administration services in Europe.
company under the Bank Holding Company Act of 1956 These foreign operations are not significant to the
(the “BHC Act”), and has elected to be treated as a Company.
financial holding company under the BHC Act. The As of December 31, 2024, U.S. Bancorp employed more
Company provides a full range of financial services, than 70,000 people.
including lending and depository services, cash
management, capital markets, and trust and investment Risk Factors
management services. It also engages in credit card An investment in the Company involves risk, including the
services, merchant and ATM processing, mortgage possibility that the value of the investment could fall
banking, insurance, brokerage and leasing. substantially and that dividends or other distributions on the
U.S. Bancorp’s banking subsidiary, USBNA, is engaged investment could be reduced or eliminated. Below are
in the general banking business, principally in domestic material risk factors that make an investment in the
markets, and holds all of the Company’s consolidated Company speculative or risky.
deposits of $518.3 billion at December 31, 2024. USBNA
provides a wide range of products and services to Economic and Market Conditions Risk
individuals, businesses, institutional organizations, Deterioration in business and economic conditions
governmental entities and other financial institutions. could adversely affect the Company’s lending business
Commercial and consumer lending services are principally and the value of loans and debt securities it holds The
offered to customers within the Company’s domestic Company’s business activities and earnings are affected by
markets, to domestic customers with foreign operations and general business conditions in the United States and
to large national customers operating in specific industries abroad, including factors such as the level and volatility of
targeted by the Company, such as healthcare, utilities, oil short-term and long-term interest rates, inflation, home
and gas, and state and municipal government. Lending prices, unemployment and under-employment levels,
services include traditional credit products as well as credit bankruptcies, household income, consumer spending,
card services, lease financing and import/export trade, fluctuations in both debt and equity capital markets,
asset-backed lending, agricultural finance and other liquidity of the global financial markets, the availability and
products. Depository services include checking accounts, cost of capital and credit, investor sentiment and
savings accounts and time certificate contracts. Ancillary confidence in the financial markets, the strength of the
services such as capital markets, treasury management domestic and global economies in which the Company
and receivable lock-box collection are provided to operates, and customer deposit behavior. These conditions
corporate and governmental entity customers. U.S. can change suddenly and negatively. For example,
Bancorp’s bank and trust subsidiaries provide a full range volatility due to failures of other banks or general
of asset management and fiduciary services for individuals, uncertainty regarding the health of banks may affect
estates, foundations, business corporations and charitable customer deposit behavior and cause deposit withdrawals,
organizations. even in situations where USBNA is not itself experiencing
Other U.S. Bancorp non-banking subsidiaries offer the same uncertainty. Other future changes in these
investment and insurance products to the Company’s conditions, whether related to a pandemic, geopolitical
customers principally within its domestic markets, and fund conflict, the threat or occurrence of a U.S. sovereign default
administration services to a broad range of mutual and or government shutdown, bank failures, other disruptions in
other funds. the financial services industry or otherwise, could have
Banking and investment services are provided through a adverse effects on the Company and its businesses.
network of branches and banking offices across the United Given the high percentage of the Company’s assets
States, primarily in the Midwest and West regions, including represented directly or indirectly by loans, and the
2,165 branches across 26 states as of December 31, 2024. importance of lending to its overall business, weak
A significant percentage of consumer transactions are economic conditions have in the past negatively affected,
completed using USBNA's digital banking services, both and may in the future negatively affect, the Company’s
online and through its digital app. The Company operates a business and results of operations, including new loan
network of 4,489 ATMs as of December 31, 2024, and origination activity, existing loan utilization rates and
provides 24-hour, seven day a week telephone customer delinquencies, defaults and the ability of customers to meet
service. Mortgage banking services are provided through obligations under the loans. The value to the Company of
banking offices and loan production offices throughout the other assets such as investment securities, most of which
Company’s domestic markets. Lending products may be are debt securities or other financial instruments supported
originated through banking offices, indirect by loans, similarly have been, and would be, negatively
correspondents, brokers or other lending sources. The impacted by widespread deterioration in credit quality
Company is also one of the largest providers of corporate resulting from a weakening of the economy.

136 U.S. Bancorp 2024 Annual Report

 In addition, volatility and uncertainty related to inflation may in the future increase deposit rates, which could
or a possible recession and their effects may contribute to decrease net interest income. All of these factors may
or enhance some of the risks described herein. For cause USBNA to lose some of its low-cost deposit funding.
example, higher inflation, slower growth or a recession has Customers may also continue to move noninterest-bearing
in the past reduced demand for borrowing from both deposits into interest-bearing accounts, thus increasing
corporate and consumer customers and could in the future overall deposit costs. Higher funding costs reduce the
reduce demand for the Company’s products, adversely Company’s net interest margin and net interest income. A
affect the creditworthiness of its borrowers or result in lower prolonged period of high or increasing interest rates may
values for its interest-earning assets and investment cause the Company to experience an acceleration of
securities. Any of these effects, or others that the Company deposit migration, which could adversely affect the
is not able to predict, could adversely affect its financial Company’s operations and liquidity. This risk is
condition or results of operations. exacerbated by technological developments and trends in
Any deterioration in global economic conditions could customer behavior, including the ease and speed with
damage the domestic economy or negatively affect the which deposits may be transferred electronically,
Company’s borrowers or other counterparties that have particularly by a growing number of customers who
direct or indirect exposure to these regions. Such global maintain accounts with multiple banks.
disruptions, including disruptions in supply chains or The Federal Reserve Board raised benchmark interest
geopolitical risk, can undermine investor confidence, cause rates throughout 2022 and 2023 in response to economic
a contraction of available credit, or create market volatility, conditions, particularly inflationary pressures, and in 2024
any of which could have material adverse effects on the began to lower interest rates. Meanwhile, longer-term
Company’s businesses, results of operations, financial interest rates, while volatile, have remained elevated.
condition and liquidity, even if the Company’s direct Historically, when interest rates are increasing, or when
exposure to the affected region is limited. Global political long-term rates are elevated relative to short-term rates, the
trends toward nationalism and isolationism could increase Company has earned higher net interest income, and
the probability of a deterioration in global economic conversely, decreasing interest rates, or situations when
conditions. long-term rates are compressed relative to, or lower than,
Changes in domestic economic, labor, trade or tax short-term rates, have adversely impacted the Company's
policies may arise from recent transitions in political net interest income. However, higher interest rates can also
leadership in the United States. Such policy changes could lead to fewer originations of loans, less liquidity in the
disrupt economic conditions, cause uncertainty, negatively financial markets, and higher funding costs, each of which
affect some sectors of the domestic market more than could adversely affect the Company’s revenues and its
others, erode consumer confidence levels, cause adverse liquidity and capital levels. Higher interest rates could also
changes in payment patterns, lead to increases in negatively affect the payment performance on loans that
delinquencies and default rates in certain industries or are scheduled to mature or are linked to variable interest
regions, or have other negative market or customer rates. If borrowers of variable rate loans are unable to
impacts. Any of these developments could increase the afford higher interest payments, those borrowers may
Company’s loan charge-offs and provision for credit losses. reduce or stop making payments, thereby causing the
Any future economic deterioration that affects household or Company to incur losses and increased operational costs
corporate incomes, or that causes or amplifies concerns related to servicing a higher volume of delinquent loans. In
regarding the possibility of a return to recessionary 2022 and 2023, as a result of the high interest rate
conditions, could also result in reduced demand for credit environment, the Company earned higher net interest
or fee-based products and services. income but experienced fewer originations of mortgage
loans and higher funding costs. During the first half of 2024,
Changes in interest rates have in the past reduced, and
interest rates remained elevated, which drove funding costs
could in the future reduce, the Company’s net interest
higher, but over the second half of the year, net interest
income The Company’s earnings are dependent to a large
income began to expand as funding costs stabilized and
degree on net interest income, which is the difference
began to decrease.
between interest income from loans and investments and
interest expense on deposits and borrowings. Net interest The Company’s results may be materially affected by
income is significantly affected by market rates of interest, market fluctuations and significant changes in the value
which in turn are affected by prevailing economic of financial instruments The value of securities,
conditions, by the fiscal and monetary policies of the derivatives and other financial instruments which the
federal government and by the policies of various Company owns or in which it makes markets can be
regulatory agencies. Volatility in interest rates can also materially affected by market fluctuations. Market volatility,
result in the flow of funds away from financial institutions illiquid market conditions and other disruptions in the
into direct investments. Direct investments, such as United financial markets may make it extremely difficult to value
States government and corporate securities and other certain financial instruments. Subsequent valuations of
investment vehicles (including mutual funds), generally pay financial instruments in future periods, in light of factors
higher rates of return than financial institutions. In order to then prevailing, may result in significant changes in the
prevent outflows and compete for a shrinking pool of value of these instruments. In addition, at the time of any
deposits, banks, including USBNA, have historically and disposition of these financial instruments, the price that the

137
Company ultimately realizes will depend on the demand not be effective against all threats, including new and
and liquidity in the market at that time and may be emerging threats. Malicious actors continue to develop
materially lower than their current fair value. Any of these increasingly sophisticated methods of attack that could
factors could cause a decline in the value of financial impact the Company, including attack methods that are
instruments that the Company owns or in which it makes aided by advanced artificial intelligence (“AI”) models and
markets, which may have an adverse effect on the other tools. Many financial institutions, retailers and other
Company’s results of operations. In addition, losses in the companies engaged in data processing and collection,
value of the Company’s investment securities or loan including software and information technology service
portfolio could affect market perception of the Company providers, have reported cyber attacks, some of which
and create volatility in the Company’s stock price. Losses in involved sophisticated and targeted attacks intended to
the value of the Company’s investment securities, even if obtain unauthorized access to confidential information,
they do not affect earnings or capital, could also cause destroy or ransom data, disable or degrade service, or
some depositors, particularly those who maintain uninsured sabotage systems, often through the introduction of
and uncollateralized deposits, to question the stability of software that is intentionally included or inserted in an
USBNA and to move their deposits away from USBNA. information system for a harmful purpose (malware).
Such events could negatively affect the Company’s Attacks on government institutions, financial institutions,
liquidity, financial condition and results of operations. technology service providers, or other institutions important
to the overall functioning of the financial system could also
Changes in United States trade policies, including the
adversely affect, directly or indirectly, aspects of the
imposition of tariffs and retaliatory tariffs, may
Company’s businesses. The increasing consolidation,
adversely impact the Company’s business, financial
interdependence and complexity of financial entities and
condition and results of operations There have been
technology systems increases the risk of operational failure,
recent changes to United States trade policies and tariffs,
both for the Company and on an industry-wide basis, and
including trade policies and tariffs affecting China, Canada
means that a technology failure, cyber attack, or other
and Mexico, and the imposition of, or the potential for the
breach that significantly degrades, deletes or compromises
imposition of, retaliatory tariffs by such countries. There
the systems or data of one or more financial entities could
could be additional changes to trade policies, tariffs and
materially affect the Company, its counterparties or other
treaties with these and other countries in the future. Such
market participants.
tariffs, retaliatory tariffs or other trade restrictions on
Third parties that facilitate the Company’s business
products and materials that the Company’s customers
activities, including exchanges, clearinghouses, payment
import or export could cause the prices of its customers’
and ATM networks, financial intermediaries and vendors
products to increase, which could reduce demand for, or
that provide services or technology solutions for the
margins on, such products. Any of these effects could
Company’s operations, are also sources of operational and
adversely affect the ability of the Company’s customers to
security risks to the Company due to operational or
service debt. Additionally, if prices of consumer goods
technical failures of their systems, misconduct or
increase materially as a result of tariffs, the ability of
negligence by their employees or cyber attacks that could
individual households to service debt may be negatively
affect their ability to deliver a product or service to the
affected. If the Company’s customers are unable to service
Company, resulting in lost or compromised Company or
their debt, it would adversely affect the Company’s financial
customer information. Furthermore, a third party may not
condition and results of operations. At this time, the
reveal an attack or system failure to the Company in a
Company and others are unable to predict whether and to
timely manner, which could compromise the Company’s
what extent further tariffs and retaliatory tariffs may be
ability to respond effectively. Some of these third parties
imposed or what effect changes in the U.S. political
may engage vendors of their own, which introduces the risk
administration may have on existing international trade
that the third party’s vendors and subcontractors could be
agreements and policies. This uncertainty complicates
the source of operational and security failures. In addition, if
business planning for the Company’s customers in certain
a third party obtains access to the customer account data
industries, which may adversely affect the Company’s
on the Company’s systems, and that party experiences a
financial results if such customers change their spending
breach via an external or internal threat or misappropriates
and borrowing patterns in response to the current
such data, the Company and its customers could suffer
uncertainty.
material harm, including heightened risk of fraudulent
Operations and Business Risk transactions, losses from fraudulent transactions, increased
operational costs to remediate any security breach and
A breach in the security of the Company’s information
legal and reputational harm. These risks are expected to
systems, or the information systems of certain third
continue to increase as the Company expands its
parties, or a critical technology failure could disrupt the
interconnectivity with its customers and other third parties.
Company’s businesses, result in the disclosure of
Within the past several years, multiple companies have
confidential information, damage its reputation and
disclosed significant cybersecurity incidents affecting debit
create significant financial and legal risk The Company
and credit card accounts of their customers, some of whom
continues to experience an increasing number of attempted
were the Company’s cardholders and who may experience
attacks on its information systems, software, networks and
fraud on their card accounts because of the breach. The
other technologies. The Company’s security measures may

138 U.S. Bancorp 2024 Annual Report

Company has suffered, and expects to suffer in the future, Company’s security measures; customer dissatisfaction;
losses associated with reimbursing its customers for such significant litigation exposure; regulatory investigations,
fraudulent transactions and for other costs related to data fines, penalties or intervention; reimbursement or other
security compromise events, such as replacing cards compensatory costs (including the costs of credit
associated with compromised card accounts. These monitoring services); additional compliance costs; and
attacks involving Company cards are expected to continue harm to the Company’s reputation, all of which could
and could, individually or in the aggregate, have a material adversely affect the Company.
adverse effect on the Company’s financial condition or Because the investigation of any cybersecurity incident
results of operations. is inherently unpredictable and would require substantial
The Company may not be able to anticipate or to time to complete, the Company may not be able to quickly
implement effective preventive measures against all cyber remediate the consequences of any incident, which may
attacks because malicious actor methods and techniques increase the costs of, and enhance the negative
change frequently, increase in sophistication, often are not consequences associated with, an incident. In addition, to
recognized until launched, sometimes go undetected even the extent the Company’s insurance covers aspects of any
when successful, and originate from a wide variety of cybersecurity incident, such insurance may not be
sources, including organized crime, hackers, terrorists, sufficient to cover all the Company’s losses.
activists, hostile foreign governments and other external
The Company relies on its employees, systems and
parties. Those parties may attempt to place their
third parties to conduct its business, and certain
information technology workers as employees or
failures by systems or misconduct by employees or
contractors of the Company or the Company’s third-party
third parties could adversely affect its operations The
vendors to attempt to gain access to the Company’s
Company operates in many different businesses in diverse
systems. Those parties may also attempt to fraudulently
markets and relies on the ability of its employees and
induce employees, customers or other users of the
systems to process a high number of transactions. The
Company’s systems to disclose sensitive information to
Company’s business, financial, accounting, data
gain access to the Company’s data or that of its customers
processing, and other operating systems and facilities may
or clients, such as through “phishing” and other social
stop operating properly or become disabled or damaged
engineering schemes. For example, recent advances in AI
due to a number of factors, including events that are out of
may allow a bad actor to create so-called “deep fakes” to
its control. In addition to the risks posed by cybersecurity
impersonate the voice or likeness of another individual,
incidents, as discussed above, such systems could be
which could be used in social engineering schemes that
compromised because of spikes in transaction volume,
may be more difficult to detect than other social
electrical or telecommunications outages, critical
engineering efforts. Attack methods may include the
technology failures, degradation or loss of internet or
introduction of computer viruses and/or malicious or
website availability, natural disasters, political or social
destructive code, denial-of-service attacks (DDoS), and
unrest, and terrorist acts. The Company’s business
cyber extortion with accompanying ransom demands. The
operations may be adversely affected by significant
Company’s information security risks may increase in the
disruption to the operating systems that support its
future as the Company continues to increase its mobile and
businesses and customers. The Company’s resiliency
internet-based product offerings and expands its internal
systems could become compromised, which could
usage of web-based products, data storage and other
negatively impact the ability to back up data.
applications. In addition, the Company’s customers often
The Company could also incur losses resulting from the
use their own devices, such as computers, smart phones
risk of human error by employees, misconduct or fraud by
and tablets, to make payments and manage their accounts,
employees or persons outside the Company, unauthorized
and are subject to social engineering schemes, scam
access to its computer systems, the execution of
websites, and other attempts from cyber criminals to
unauthorized transactions by employees, errors relating to
compromise or deny access to their accounts. The
transaction processing and technology, breaches of the
Company has limited ability to assure the safety and
internal control system and compliance requirements, and
security of its customers’ transactions with the Company to
failures of business continuation and disaster recovery
the extent they are using their own devices, which have
processes and systems. This risk of loss also includes
been, and likely will continue to be, subject to such threats.
customer remediation costs, potential legal actions, fines or
If the Company’s physical or cybersecurity systems are
civil money penalties that could arise resulting from an
penetrated or circumvented, or an authorized user
operational deficiency or noncompliance with applicable
intentionally or unintentionally removes, loses or destroys
regulatory standards, adverse business decisions or their
critical business data, serious negative consequences for
implementation, reputational harm, and customer attrition
the Company can follow, including significant disruption of
due to potential negative publicity.
the Company’s operations, misappropriation of confidential
Third parties provide key components of the Company’s
Company and/or customer information, or damage to the
business infrastructure, such as internet connections, cloud
Company’s, customers’ or counterparties’ computers or
services, network access and mutual fund distribution. Any
systems. These consequences could result in violations of
problems caused by third-party service providers,
privacy and other applicable laws; financial loss to the
including failing to comply with their contractual obligations
Company or to its customers; loss of confidence in the
or performing their services negligently, which could cause

139
critical technology failures, could adversely affect the common law, or regulations designed to protect personal
Company’s ability to deliver products and services to the information could potentially require substantial technology
Company’s customers and otherwise conduct its business. infrastructure and process changes across many of the
Replacing third-party service providers could also entail Company’s businesses. Non-compliance with the CCPA or
significant delay and expense. In addition, failure of third- similar laws and regulations could lead to substantial
party service providers to handle current or higher volumes regulatory fines and penalties, damages from private
of use could adversely affect the Company’s ability to causes of action, compelled changes to the Company’s
deliver products and services to clients and otherwise business practices, and/or reputational harm. The
conduct its business. Technological or financial difficulties Company cannot predict whether any pending or future
of a third-party service provider could adversely affect the state or federal legislation will be adopted, or the impact of
Company’s businesses to the extent those difficulties result any such adopted legislation on the Company. Future
in the interruption or discontinuation of services provided legislation could result in substantial costs to the Company
by that party. and could have an adverse effect on its business, financial
Operational risks for large financial institutions such as condition, and results of operations.
the Company have generally increased in recent years, in In addition, legal requirements for cross-border personal
part because of the proliferation of new technologies, data transfers vary across jurisdictions, such as in the
implementation of work-from-home and hybrid work European Economic Area and the United Kingdom, and are
arrangements, the use of internet services and evolving rapidly. Compliance with this changing landscape
telecommunications technologies to conduct financial of privacy requirements could potentially compel the
transactions, the increased number and complexity of Company to make significant technological and operational
transactions being processed, and the increased changes, any of which could result in substantial costs to
sophistication and activities of organized crime, hackers, the Company, and failure to comply with applicable data
terrorists, activists, and other external parties. In the event transfer or privacy requirements could subject the
of a breakdown in the Company’s internal control systems, Company to fines or regulatory investigation or oversight.
improper operation of systems or improper employee or Additional risks could arise from the failure of the
third-party actions, the Company could suffer financial loss, Company or third parties to provide adequate notice to the
face legal or regulatory action and suffer damage to its Company’s customers about the personal information
reputation. collected from them and the use of such information; to
receive, document, and honor the privacy preferences
The Company could face material legal and reputational
expressed by the Company’s customers; to protect
harm if it fails to safeguard personal information The
personal information from unauthorized disclosure; or to
Company is subject to complex and evolving laws and
maintain proper training on privacy practices for all
regulations, both inside and outside the United States,
employees or third parties who have access to personal
governing the privacy and protection of personal
information. Concerns regarding the effectiveness of the
information. Individuals whose personal information may be
Company’s measures to safeguard personal information
protected by law include the Company’s customers and
and abide by privacy preferences, or even the perception
their customers, prospective customers, job applicants,
that those measures are inadequate or that the Company
current and former employees, employees of the
does not abide by such privacy preferences, could cause
Company’s suppliers, and other individuals. Complying
the Company to lose existing or potential customers and
with laws and regulations applicable to the Company’s
thereby reduce its revenues. In addition, any failure or
collection, use, transfer and storage of personal information
perceived failure by the Company to comply with
can increase operating costs, impact the development and
applicable privacy or data protection laws and regulations
marketing of new products or services, and reduce
has subjected, and may in the future subject, the Company
operational efficiency. Mishandling or misuse of personal
to litigation and could result in requirements to modify or
information by the Company or its suppliers, including data
cease certain operations or practices, and/or incur material
breaches at third parties exposing personal information that
liabilities or regulatory fines, penalties, or other sanctions.
have occurred and could occur in the future, have resulted
Refer to “Supervision and Regulation” in the Company’s
in litigation against the Company and could result in
Annual Report on Form 10-K for additional information
additional litigation or regulatory fines, penalties or other
regarding data privacy laws and regulations. Any of these
sanctions in the future. For example, in 2024, a state
outcomes could materially damage the Company’s
attorney general filed a claim in federal court against a
reputation and otherwise adversely affect its business.
bank for alleged failure to protect consumer accounts from
fraud. The Company could lose market share and experience
In the United States, several states have enacted increased costs if it does not effectively develop and
consumer privacy laws that impose compliance obligations implement new technology The financial services industry
with respect to personal information. In particular, the is continually undergoing rapid technological change with
California Consumer Privacy Act (the ”CCPA”), as amended frequent introductions of new technology-driven products
by the California Privacy Rights Act, and its implementing and services, including innovative ways that customers can
regulations impose significant requirements on covered make payments or manage their accounts, such as through
businesses with respect to consumer data privacy rights. the use of mobile payments, digital wallets or digital
Compliance with the CCPA and other state statutes, currencies. The Company believes its success depends, in

140 U.S. Bancorp 2024 Annual Report

part, upon its ability to address customer needs by using Damage to the Company’s reputation could adversely
technology to provide products and services and create impact its business and financial results Reputation risk,
additional efficiencies in the Company’s operations. When or the risk to the Company’s business, earnings and capital
launching a new product or service or introducing a new from negative public opinion, is inherent in the Company’s
platform for the delivery of products and services, the business. Negative public opinion about the financial
Company might not identify or fully appreciate the services industry generally or the Company specifically
operational risks arising from those innovations or might could adversely affect the Company’s ability to retain and
inadvertently fail to implement adequate controls to mitigate attract stakeholders such as customers, investors, and
those risks. Developing and deploying new technology- employees and could expose the Company to litigation and
driven products and services can also involve costs that regulatory action. Negative public opinion can result from
the Company may not recover and divert resources away the Company’s actual or alleged conduct in any number of
from other product development efforts. The Company’s activities, including lending practices, cybersecurity
products and services may also rely on certain hardware, incidents, misuse or failure to safeguard personal
software, or service companies for which there are few information, inability to meet community and other
alternatives, and the costs charged by these vendors may stakeholder commitments, discriminating or harassing
increase significantly year to year. In addition to the risk behavior of employees toward other employees or
posed by critical technology failures, the Company may not customers, mortgage servicing and foreclosure practices,
be able to effectively develop and implement profitable new compensation practices, sales practices, regulatory
technology-driven products and services or be successful compliance, mergers and acquisitions, and actions taken
in marketing these products and services to its customers. by government regulators and community organizations in
Failure to successfully keep pace with technological response to that conduct. Additionally, the Company’s
change affecting the financial services industry, including stakeholders often hold differing views on how the
because competitors may spend more resources on Company should address environmental, social and
developing new technologies or because non-bank sustainability matters, including diversity-related matters,
competitors have a lower cost structure and more flexibility, and the Company may not be able to meet the diverging
could harm the Company’s competitive position and expectations of different stakeholder groups, which could
negatively affect its revenue and profit. result in negative attention in traditional and social media,
resulting in a negative perception of the Company
The use of new technologies, including AI and machine
depending on an individual’s view. In addition, failure to
learning, may result in reputational harm, increased
make accurate disclosures on these or other topics, or to
regulatory scrutiny and increased liability The banking
deliver against announced goals, commitments and plans
industry is subject to rapid and significant technological
on these or other topics, could present reputational, legal
change. To compete effectively, the Company uses new
and financial harm to the Company. If the Company is
and evolving technologies, including AI and machine
unable to design or execute against business strategies,
learning, to help improve its customer service, marketing,
including with respect to environmental, social or
and products, to increase productivity for internal code
sustainability matters, reputational damage could result,
development and testing, and to automate certain business
leading to a loss of customers or negative investor
decisions and risk management practices, such as fraud
sentiment.
identification. The Company's use of AI and machine
learning is subject to risks that algorithms and datasets are The Company’s business and financial performance
flawed or may be insufficient or contain biased information. could be adversely affected, directly or indirectly, by
In addition, the models and processes relating to AI and natural disasters, pandemics, terrorist activities, civil
machine learning are not always transparent, which could unrest or international hostilities Neither the occurrence
increase the risk of unintended deficiencies. These nor the potential impact of natural disasters, pandemics,
deficiencies could result in inaccurate or ineffective terrorist activities, civil unrest or international hostilities can
decisions, predictions or analysis, which could subject the be predicted. However, these occurrences could impact
Company to competitive harm, legal liability, increased the Company directly (for example, by interrupting the
regulatory scrutiny, reputational harm or other Company’s systems, which could prevent the Company
consequences that the Company may not be able to from obtaining deposits, originating loans and processing
predict, any of which could negatively affect the Company's and controlling its flow of business; causing significant
financial condition and results of operations. Furthermore, damage to the Company’s facilities; or otherwise
the legal and regulatory landscape impacting new preventing the Company from conducting business in the
technologies such as AI is evolving rapidly, and the inability ordinary course), or indirectly as a result of their impact on
to predict how this regulation will take shape and the the Company’s borrowers, depositors, other customers,
absence of a uniform regulatory framework for AI may vendors or other counterparties (for example, by damaging
present unforeseen challenges in applying and relying on properties pledged as collateral for the Company’s loans or
existing compliance systems. Complying with existing and impairing the ability of certain borrowers to repay their
new AI and data usage laws, and inconsistencies in loans). The Company has also suffered, and could in the
regulation from jurisdiction to jurisdiction, could increase future suffer, adverse consequences to the extent that
expenses and exposure to legal or regulatory proceedings. natural disasters, pandemics, terrorist activities, civil unrest
or international hostilities, including the ongoing war in

141
Ukraine and conflict in the Middle East, affect the financial significant costs as the Company implements compliance,
markets or the economy in general or in any particular disclosure and other programs. Failure to comply with any
region. These occurrences have caused, and may in the applicable laws or regulations could result in legal or
future cause, operational disruptions and increases in regulatory sanctions and harm to the Company’s
delinquencies, bankruptcies or defaults that could result in reputation. Failure to adequately consider transition risks in
the Company experiencing higher levels of nonperforming the Company’s operations could lead to a loss of market
assets, net charge-offs and provisions for credit losses. share, lower revenues, decreased asset values and higher
The United States has in recent years faced periods of credit costs. For example, a transition to a low-carbon
significant civil unrest. Although civil unrest has not economy could negatively affect the business of customers
materially affected the Company’s businesses to date, in carbon-intensive industries and reduce their
similar events could, directly or indirectly, have a material creditworthiness.
adverse effect on the Company’s operations (for example, These physical risks and transition risks could increase
by causing shutdowns of branches or working locations of expenses or otherwise adversely impact the Company’s
vendors or other counterparties or damaging property business strategy, operations, financial performance and
pledged as collateral for the Company’s loans). customers. In particular, new laws, regulations or guidance,
The Company’s ability to mitigate the adverse or the attitudes of regulators, shareholders, employees and
consequences of these occurrences is in part dependent customers regarding climate change, may affect the
on the quality of the Company’s resiliency planning and the activities in which the Company engages and the products
Company’s ability, if any, to anticipate the nature of any that the Company offers. An inability to adjust the
such event that occurs. The adverse effects of natural Company’s business to mitigate the effects of physical and
disasters, pandemics, terrorist activities, civil unrest or transition risks could result in higher operational and credit
international hostilities also could be increased to the extent losses. In addition, the Company’s stakeholders’ views on
there is a lack of preparedness on the part of national or climate change are diverse, dynamic, and rapidly
regional emergency responders or on the part of other changing, and the Company may not be able to meet the
organizations and businesses that the Company transacts diverging expectations and priorities of different
with, particularly those that it depends upon, but has no stakeholder groups, including regulators in different
control over. jurisdictions as further discussed in the risk factor “The
Company is subject to significant financial and reputation
The Company’s business strategy, operations, financial
risks from potential legal liability and governmental
performance and customers could be materially
actions”. The Company could also experience increased
adversely affected by the impacts related to climate
expenses resulting from strategic planning, litigation and
change Risks associated with climate change have
technology and market changes, and reputational harm as
affected, and may continue to affect, the Company and its
a result of negative public sentiment, regulatory scrutiny
customers and communities. The physical risks of climate
and reduced investor and stakeholder confidence due to
change include chronic shifts in the climate, such as
the Company’s response to climate change and the
increasing average global temperatures, rising sea levels
Company’s climate change strategy.
and an increase in the frequency and severity of extreme
Risks associated with climate change are continuing to
weather events and natural disasters, including wildfires,
evolve rapidly, making it difficult to assess the effects of
floods, tornadoes and hurricanes. The financial costs
climate change on the Company, and the Company
related to natural disasters have increased in recent years
expects that climate change-related risks will continue to
and may continue to do so in the future based on multiple
evolve and increase over time.
factors. Such chronic shifts and disasters could disrupt the
Company’s businesses and operations or the businesses Regulatory and Legal Risk
and operations of the Company’s customers, vendors or
The Company is subject to extensive and evolving
counterparties, particularly with respect to those located in
government regulation and supervision, which can
low-lying areas and coastlines that are more prone to
increase the cost of doing business, limit the
flooding or other areas that are prone to wildfires and other
Company’s ability to make investments and generate
disasters. Such chronic shifts and disasters could also
revenue, and lead to costly enforcement actions
adversely affect the Company’s business strategy and
Banking regulations are primarily intended to protect
financial performance by, among other impacts, resulting in
depositors’ funds, the federal Deposit Insurance Fund, and
market volatility, negatively impacting customers’ ability to
the United States financial system as a whole, and not the
pay outstanding loans or fulfill other contractual obligations,
Company’s debt holders or shareholders. These
damaging collateral or resulting in the deterioration of the
regulations, and the Company’s inability to act in certain
value of collateral, or reducing availability or increasing
instances without receiving prior regulatory approval, affect
costs of insurance, including insurance that protects
the Company’s lending practices, capital structure,
property pledged as collateral for Company loans.
investment practices, dividend policy, ability to repurchase
To the extent the United States and global economies
common stock, and ability to pursue strategic acquisitions,
continue to transition to a low-carbon economy, transition
among other activities.
risks may arise from changes in consumer preferences,
The Company expects that its business will remain
technologies, public policies, and legal and regulatory
subject to extensive regulation and supervision and that the
requirements. New laws and regulations could result in

142 U.S. Bancorp 2024 Annual Report

level of scrutiny and the enforcement environment may likely to result in changing federal or state regulatory
fluctuate over time, based on numerous factors, including priorities. Any shifts in state or federal regulatory priorities
bank failures, changes in the United States presidential may also result in increased compliance costs and
administration or one or both houses of Congress and regulatory risks as new regulations are issued and
public sentiment regarding financial institutions (which can enforcement priorities shift. Failure to comply with any new
be influenced by scandals and other incidents that involve law or regulation could result in litigation, regulatory
participants in the industry). In particular, recent changes in enforcement actions and harm to the Company’s
national political leadership have introduced uncertainty reputation.
into the direction and timing of any future regulation. The General regulatory practices, such as longer time
Company expects the Trump administration will seek to frames to obtain regulatory approvals for acquisitions and
implement a regulatory reform agenda that is significantly other activities (and the resultant impact on businesses the
different than that of the Biden administration, impacting the Company may seek to acquire) and initiatives to reduce
rulemaking, supervision, examination and enforcement fees on certain products, could affect the Company’s ability
priorities of the federal banking agencies. Any potential or willingness to make certain acquisitions or introduce new
new regulations or modifications to existing regulations and products or services. These could affect the Company’s
supervisory expectations may necessitate changes to the ability or willingness to provide certain products or
Company’s existing regulatory compliance and risk services, necessitate changes to the Company’s business
management infrastructure. In addition, changes in key practices or reduce the Company’s revenues.
personnel at the agencies that regulate the Company, Federal law grants substantial supervisory and
including federal banking regulators, may result in differing enforcement powers to federal banking regulators and law
interpretations of existing rules and guidelines and enforcement agencies, including, among other things, the
potentially more stringent enforcement and more severe ability to assess significant civil or criminal monetary
penalties than previously experienced. In June 2024, the penalties, fines, or restitution; to issue cease and desist or
U.S. Supreme Court reversed its longstanding approach removal orders; and to initiate injunctive actions against
under the Chevron doctrine, which provided for judicial banking organizations and institution-affiliated parties. The
deference to regulatory agencies. As a result of this financial services industry continues to face scrutiny from
decision, there may be increased challenges to existing bank supervisors in the examination process and stringent
agency regulations, and it is uncertain how lower courts will enforcement of regulations on both the federal and state
apply the decision in the context of other regulatory levels, including with respect to mortgage-related
schemes. practices, fair lending practices, fees charged by banks,
New regulations or modifications to existing regulations student lending practices, sales practices and related
and supervisory expectations have increased, and may in incentive compensation programs, and other consumer
the future increase, the Company’s costs over time and compliance matters, as well as compliance with Bank
necessitate changes to the Company’s existing regulatory Secrecy Act/anti-money laundering (“BSA/AML”)
compliance and risk management infrastructure. In requirements and sanctions compliance requirements as
addition, regulatory changes may reduce the Company’s administered by the Office of Foreign Assets Control, and
revenues (including by limiting the fees the Company may consumer protection issues more generally. This regulatory
charge), limit the types of financial services and products it scrutiny, or the results of an investigation or examination,
may offer, alter the investments it makes, affect the manner may lead to additional regulatory investigations or
in which it operates its businesses, increase its litigation enforcement actions. There is no assurance that those
and regulatory costs should it fail to appropriately comply actions will not result in regulatory settlements or other
with new or modified laws and regulatory requirements, and enforcement actions against the Company or any of the
increase the ability of non-banks to offer competing Company’s subsidiaries (including USBNA), which could
financial services and products. cause the Company material financial and reputational
Changes to statutes, regulations or regulatory policies, harm. Furthermore, a single event involving a potential
or their interpretation or implementation, and/or regulatory violation of law or regulation may give rise to numerous and
practices, requirements or expectations, could affect the overlapping investigations and proceedings, either by
Company in substantial and unpredictable ways. multiple federal and state agencies and officials in the
Complying with regulatory changes has at times resulted in United States or, in some instances, regulators and other
significant expense for the Company, and these and other governmental officials in foreign jurisdictions. In addition,
future regulatory changes could result in further significant another financial institution’s violation of law or regulation
expenses which could materially affect the Company’s relating to a business activity or practice often will give rise
financial condition and results of operations. In particular, to an investigation of the same or similar activities or
regulators have proposed a number of regulations that, if practices of the Company.
they were to become effective, would affect the Company’s In general, the amounts paid by financial institutions in
fee revenues and increase compliance costs for the settlement of proceedings or investigations and the severity
Company. The potential effects on the Company remain of other terms of regulatory settlements are likely to remain
uncertain due to legal challenges to many of the regulations elevated. In some cases, governmental authorities have
as well as the recent changes in the U.S. presidential required criminal pleas or other extraordinary terms,
administration and control of the U.S. Senate, which are including admissions of wrongdoing and the imposition of

143
monitors, as part of such settlements, which could have III Endgame” rules would result in significant changes to
significant consequences for a financial institution, regulatory capital rules applicable to the Company. The
including loss of customers, reputational harm, increased Company expects that, if adopted, the final rules will result
exposure to civil litigation, restrictions on the ability to in requirements for the Company to maintain increased
access the capital markets, and the inability to operate levels of regulatory capital. These and other future changes
certain businesses or offer certain products for a period of to the implementation of these rules including the stress
time. capital buffer, or additional capital- and liquidity-related
Non-compliance with sanctions laws and/or BSA/AML rules, could require the Company to take further steps to
laws or failure to maintain an adequate BSA/AML increase its capital, increase its investment security
compliance program can lead to significant monetary holdings, divest assets or operations, or otherwise change
penalties and reputational damage. In addition, federal aspects of its capital and/or liquidity measures, including in
regulators evaluate the effectiveness of an applicant in ways that may be dilutive to shareholders or could limit the
combating money laundering when determining whether to Company’s ability to pay common stock dividends,
approve a proposed bank merger, acquisition, repurchase its common stock, invest in its businesses or
restructuring, or other expansionary activity. There have provide loans to its customers.
been a number of significant enforcement actions against The effects of external events and actions by the Federal
banks, broker-dealers and non-bank financial institutions Reserve Board have in the past limited and may in the
with respect to sanctions laws and BSA/AML laws, and future limit capital distributions, including suspension of the
some have resulted in substantial penalties, including Company’s share repurchase program or reduction or
against the Company and USBNA in 2018. The adoption of suspension of the Company’s common stock dividend. In
cryptocurrency and blockchain technology has rapidly addition, bank failures in 2023 and the results of regulatory
expanded in recent years, and future regulatory changes investigations into the failures has resulted in, and could
may lead to additional growth of digital assets. result in further, increased regulatory scrutiny and
Cryptocurrency and other new forms of payment have heightened regulatory requirements, any of which could
resulted in increased BSA/AML compliance risks, require the Company to expend significant time and effort
particularly with respect to “know-your-customer” and to implement appropriate compliance procedures or to
transaction monitoring requirements. incur other expenses, and could negatively affect the
Violations of laws and regulations or deemed Company’s financial condition or results of operations.
deficiencies in risk management practices or consumer Further, in August 2023, the Federal Reserve Board,
compliance also may be incorporated into the Company’s OCC and FDIC issued a proposed rule that would require,
confidential supervisory ratings. A downgrade in these among other institutions, each Category III U.S. bank
ratings, or these or other regulatory actions and holding company, including the Company, and each
settlements, could limit the Company’s ability to conduct insured depository institution with $100 billion or more in
expansionary activities for a period of time and require new total consolidated assets that is a consolidated subsidiary
or additional regulatory approvals before engaging in of a Category III U.S. bank holding company, such as
certain other business activities. USBNA, to have minimum levels of outstanding long-term
debt. The proposed rule is intended to improve the
Differences in regulation can affect the Company’s
resolvability of the banking organizations covered by the
ability to compete effectively The content and application
rule. Any effects on the Company and USBNA will depend
of laws and regulations applicable to financial institutions
on the final form of any rulemaking, and may require the
vary according to the size of the institution, the jurisdictions
Company to change its current funding mix, including
in which the institution is organized and operates and other
being required to raise additional long-term debt, which
factors. Large institutions, such as the Company, often are
could adversely impact net interest margin and net interest
subject to more stringent regulatory requirements and
income.
supervision than smaller institutions. In addition, financial
Refer to “Supervision and Regulation” in the Company’s
technology companies and other non-bank competitors
Annual Report on Form 10-K for additional information
may not be subject to the prudential and consumer
regarding the Company’s capital and liquidity
protection regulatory framework that applies to banks, or
requirements.
may be regulated by a national or state agency that does
not have the same regulatory priorities or supervisory The Company is subject to significant financial and
requirements as the Company’s regulators. These reputation risks from potential legal liability and
differences in regulation can impair the Company’s ability governmental actions The Company faces significant
to compete effectively with competitors that are less legal risks in its businesses, and the volume of claims and
regulated and that do not have similar compliance costs or amount of damages and penalties claimed in litigation and
restrictions on activities. governmental proceedings against it and other financial
institutions are substantial. Customers, clients and other
Stringent requirements related to capital and liquidity
counterparties make claims for substantial or indeterminate
are applicable to larger banking organizations,
amounts of damages, while banking regulators and certain
including the Company, that may limit the Company’s
other governmental authorities have focused on
ability to return earnings to shareholders or operate or
enforcement. The Company is named as a defendant or is
invest in its business If enacted as proposed, the “Basel
otherwise involved in many legal proceedings, including

144 U.S. Bancorp 2024 Annual Report

class actions and other litigation. As a participant in the requests. If economic conditions and the housing market
financial services industry, it is likely that the Company will deteriorate or the GSEs increase their claims for breached
continue to experience a high level of litigation and representations and warranties, the Company could have
government scrutiny related to its businesses and increased repurchase obligations and increased losses on
operations in the future. Substantial legal liability or repurchases, requiring material increases to its repurchase
significant governmental action against the Company could reserve.
materially impact the Company’s financial condition and The Company’s failure to satisfy its obligations as
results of operations (including because such matters may servicer for consumer loan securitizations and
be resolved for amounts that exceed established accruals residential mortgage loans owned by other entities, and
for a particular period) or cause significant reputational other losses the Company could incur as servicer,
harm to the Company. could adversely impact the Company’s reputation,
For example, banking organizations have been subject servicing costs or results of operations The Company
to claims regarding patent infringement or other violations services both automobile and unsecured consumer
of intellectual property rights in recent years which, in some installment loans on behalf of third-party securitization
cases, have resulted in large judgments against the banks. vehicles and also acts as servicer and master servicer for
Such claims have in the past been brought against the mortgage loans included in securitizations and for
Company, and if the Company is not successful in unsecuritized mortgage loans owned by investors. As a
defending such claims or if new claims are brought or servicer or master servicer for those loans, the Company
damages sought increase, the Company may incur has certain contractual obligations to the securitization
substantial costs in defending such claims, regardless of trusts, investors, or other third parties. As a servicer, the
their merit. If such claims are successful, the Company Company’s obligations include collecting all payments due
could be required to pay substantial damages and could by the borrower consistent with accepted servicing
suffer reputational and other harm. practices and applicable law, which in the case of borrower
In addition, lawmakers and regulators have proposed or delinquency or default may include, as applicable to the
adopted expansive requirements on environmental, social loan, considering alternatives to repossession or
and sustainability matters. These requirements are foreclosure upon the collateral securing the loan, such as
emerging and evolving rapidly, and some have been loan modifications or short sales. In the Company’s
subject to judicial challenges, leading to significant legal capacity as a master servicer, obligations include
uncertainty. The diverging approach of lawmakers and overseeing the servicing of mortgage loans by the servicer.
regulators on these matters further amplify such Generally, the Company’s servicing obligations are set by
uncertainty. For example, some states in which the contract, for which the Company receives a contractual fee.
Company does business have implemented “anti-ESG” However, with respect to mortgage loans, GSEs can amend
measures and may seek to implement additional measures their servicing guidelines, which can increase the scope or
in the future. Such measures may conflict with other costs of the services required without any corresponding
regulatory requirements, including requirements to increase in the Company’s servicing fee. As a servicer, the
enhance environmental, social and sustainability-related Company also advances expenses on behalf of investors
disclosures and efforts imposed by other jurisdictions in which it may be unable to collect. A material breach of the
which the Company operates, or be inconsistent with the Company’s obligations as servicer or master servicer may
expectations of certain Company customers and result in contract termination if the breach is not cured
shareholders. If the Company fails to comply with evolving, within a specified period of time following notice which
and possibly conflicting, legal and regulatory requirements, would negatively impact the Company’s ongoing servicing
it could harm the Company’s ability to continue to conduct fee compensation and could adversely impact the
business in one or more of the jurisdictions in which the Company’s reputation. In addition, the Company may be
Company currently operates, or could otherwise harm the required to indemnify the securitization trustee against
Company’s business. losses from any failure by the Company, as a servicer or
master servicer, to perform the Company’s servicing
The Company may be required to repurchase mortgage
obligations or any act or omission on the Company’s part
loans or indemnify mortgage loan purchasers as a
that involves willful misfeasance, bad faith, or gross
result of breaches in contractual representations and
negligence. For certain investors and certain transactions,
warranties When the Company sells mortgage loans that it
the Company may be contractually obligated to repurchase
has originated to various parties, including GSEs, it is
a loan or reimburse the investor for credit losses incurred
required to make customary representations and warranties
on the loan as a remedy for servicing errors with respect to
to the purchaser about the mortgage loans and the manner
the loan or a result of claims made that the Company did
in which they were originated. The Company may be
not satisfy its obligations as a servicer or master servicer.
required to repurchase mortgage loans or be subject to
The Company may also experience increased loss severity
indemnification claims in the event of a breach of
on repurchases, which may require a material increase to
contractual representations or warranties that is not
the Company’s repurchase reserve. The Company has and
remedied within a certain period. Contracts for residential
may continue to receive indemnification requests related to
mortgage loan sales to the GSEs include various types of
the Company’s servicing of mortgage loans owned or
specific remedies and penalties that could be applied if the
insured by other parties, primarily GSEs.
Company does not adequately respond to repurchase

145
Credit and Mortgage Business Risk A concentration of credit and market risk in the
Company’s loan portfolio could increase the potential
Heightened credit risk could require the Company to
for significant losses The Company may have higher
increase its provision for credit losses, which could
credit risk, or experience higher credit losses, to the extent
have a material adverse effect on the Company’s results
its loans are concentrated by loan type, industry segment,
of operations and financial condition When the Company
borrower type, or location of the borrower or collateral. For
lends money, or enters into commitments to lend money, it
example, high vacancy rates in commercial properties may
incurs credit risk, or the risk of loss if its borrowers do not
affect the value of commercial real estate, including by
repay their loans. The credit performance of the Company’s
causing the value of properties securing commercial real
loan portfolios significantly affects its financial results and
estate loans to be less than the amounts owed on such
condition. If the current economic environment were to
loans. In addition, elevated interest rates may make it more
worsen, the Company’s customers may have more difficulty
difficult for borrowers to refinance maturing loans. Any of
in repaying their loans or other obligations, which could
these or other events could increase the level of defaults
result in a higher level of credit losses and higher
and result in higher credit losses to the Company. The
provisions for credit losses. Stress on the United States
Company’s credit risk and credit losses can also increase if
economy or the local economies in which the Company
borrowers who engage in similar activities are uniquely or
does business, including the economic stress caused by
disproportionately affected by economic or market
high commercial real estate vacancy rates, escalating
conditions, or by regulation, such as regulation related to
geopolitical tensions, trade tariffs or other fiscal policies,
climate change. Deterioration in economic conditions or
and elevated interest rates and inflation has resulted, and in
real estate values in states or regions where the Company
the future may result, in, among other things, borrowers’
has relatively larger concentrations of residential or
inability to refinance loans at maturity and unexpected
commercial real estate could result in higher credit costs.
deterioration in credit quality of the loan portfolio or in the
For example, the Company’s acquisition of MUB increased
value of collateral securing those loans, which has caused,
the Company’s exposure to the markets in California.
and in the future could cause, the Company to establish
Deterioration in real estate or collateral values and
higher provisions for credit losses.
underlying economic conditions in California, including as a
The Company reserves for credit losses by establishing
result of wildfires, could result in higher credit losses to the
an allowance through a charge to earnings to provide for
Company.
loan defaults and nonperformance. The Company’s
allowance for credit losses is compliant with CECL Changes in interest rates can impact the value of the
accounting guidance, under which the allowance for credit Company’s mortgage servicing rights and mortgages
losses reflects the Company’s expected lifetime loss held for sale, and can make its mortgage banking
estimates of the portfolio. The allowance for credit losses is revenue volatile from quarter to quarter, which can
constructed based on an evaluation of the risks associated reduce its earnings The Company has a portfolio of MSRs,
with its loan portfolio, including the size and composition of which is the right to service a mortgage loan—collect
the loan portfolio, the portfolio’s historical loss experience, principal, interest and escrow amounts—for a fee. The
current and foreseeable economic conditions and borrower Company’s MSR portfolio had a fair value of $3.4 billion as
financial condition and collateral value. These forecasts of December 31, 2024. The Company initially carries its
and estimates require difficult, subjective, and complex MSRs using a fair value measurement of the present value
judgments, including forecasts of economic conditions and of the estimated future net servicing income, which
how these economic predictions might impair the ability of includes assumptions about the likelihood of prepayment
the Company’s borrowers to repay their loans. The by borrowers. Changes in interest rates can affect
Company may not be able to accurately predict these prepayment assumptions and thus fair value. When interest
economic conditions and/or some or all of their effects, rates fall, prepayments tend to increase as borrowers
which may, in turn, negatively impact the reliability of the refinance, and the fair value of MSRs can decrease, which
process. The Company also makes loans to borrowers in turn reduces the Company’s earnings. Further, it is
where it does not have or service the loan with the first lien possible that, because of economic conditions such as a
on the property securing its loan. For loans in a junior lien weak or deteriorating housing market, even when interest
position, the Company may not have access to information rates fall, mortgage originations may fall or any increase in
on the position or performance of the first lien when it is mortgage originations may not be enough to offset the
held and serviced by a third party, which may adversely decrease in the MSRs’ value caused by the lower rates.
affect the accuracy of the loss estimates for loans of these
Decreased purchase volume by GSEs or limits on the
types. Increases in the Company’s allowance for loan
Company’s access to the mortgage secondary market
losses may not be adequate to cover actual loan losses,
and GSEs could adversely affect the Company’s
and future provisions for loan losses could materially and
revenue and capacity to fund new loans The Company
adversely affect its financial results. In addition, the
sells a portion of the mortgage loans that it originates to
Company’s ability to assess the creditworthiness of its
increase revenue through origination fees and ongoing
customers may be impaired if the models and approaches
servicing of such loans and to provide funding capacity for
it uses to select, manage, and underwrite its customers
originating additional loans. GSEs could limit their
become less predictive of future behaviors.
purchases of conforming loans due to capital constraints,

146 U.S. Bancorp 2024 Annual Report

other changes in their criteria for conforming loans or other the Company’s predominately United States–based
reasons. This potential reduction in purchases could limit businesses or the merchant processing, corporate trust
the Company’s ability to fund new loans. In addition, if and fund administration services businesses it operates in
GSEs limit their purchases of conforming loans, the foreign countries. Many of these transactions expose the
Company may limit its originations of mortgage loans that it Company to credit risk in the event of a default by a
intends to sell, which could reduce the Company’s revenue counterparty or client. In addition, the Company’s credit risk
from origination fees of such loans and the ongoing may be further increased when the collateral held by the
servicing fees it receives from such loans. Proposals have Company cannot be realized upon or is liquidated at prices
been presented to reform the housing finance market in the not sufficient to recover the full amount of the financial
U.S., including the role of the GSEs in the residential instrument exposure due the Company. Any such losses
finance market. The extent and timing of any such could adversely affect the Company’s results of operations.
regulatory reform of the housing finance market and the
Change in residual value of leased assets may have an
GSEs, as well as any effect on the Company’s business
adverse impact on the Company’s financial results The
and financial results, are uncertain.
Company engages in leasing activities and is subject to the
A decline in the soundness, strength or stability of risk that the residual value of the property under lease will
other financial institutions could adversely affect the be less than the Company’s recorded asset value. Adverse
Company’s results of operations Actual or perceived changes in the residual value of leased assets can have a
issues with, or rumors or questions about, one or more negative impact on the Company’s financial results. The
financial institutions, or about the financial services industry risk of changes in the realized value of the leased assets
more generally, have led to, and may in the future lead to, compared to recorded residual values depends on many
among other things: market-wide liquidity problems; rapid factors outside of the Company’s control, including supply
and significant deposit withdrawals at certain institutions, and demand for the assets, condition of the assets at the
particularly those with elevated levels of uninsured end of the lease term, and other economic factors.
deposits; losses or defaults by certain institutions, up to
Liquidity Risk
and including failures of banks; significant volatility in the
stock of financial services institutions; and an increase in If the Company does not effectively manage its liquidity,
fear or skepticism of the safety of banks generally. In its business could suffer The Company’s liquidity is
addition, the Company’s ability to engage in routine funding essential for the operation of its businesses. Market
or settlement transactions could be adversely affected by conditions, the threat or occurrence of a U.S. sovereign
any of these events or by other events that affect the default, unforeseen outflows of funds or other events could
commercial soundness of other domestic or foreign negatively affect the Company’s level or cost of funding, in
financial institutions. Failures of banks that are unrelated to turn affecting its ongoing ability to accommodate liability
USBNA have increased, and may in the future increase, maturities and deposit withdrawals, meet contractual
USBNA’s deposit insurance assessments, such as the obligations, and fund asset growth and new business
FDIC’s special assessment relating to bank failures that transactions at a reasonable cost and in a timely manner. If
occurred in 2023. In addition, customers and others may the Company’s access to stable and low-cost sources of
seek to make comparisons between failed or failing banks funding, such as customer deposits, is reduced, the
and USBNA, which, even if unfounded, can spread quickly Company might need to use alternative funding, which
through social media or other online channels. Such could be more expensive or of limited availability. Any
comparisons could affect customer confidence in USBNA substantial, unexpected or prolonged changes in the level
and lead to deposit withdrawals or other negative effects or cost of liquidity could materially and adversely affect the
the Company is unable to predict, any of which could Company’s businesses.
materially and negatively affect the Company’s results of In addition, bank failures in 2023 led to significant
operations and financial condition. In addition, due to the volatility in the financial services industry and to liquidity
prevalence of mobile banking and the ease with which problems at certain institutions. Although governmental
customers can withdraw funds, deposits can now be support was provided in connection with these bank
withdrawn at a significantly faster pace than in the past (as failures, including the FDIC invoking the systemic risk
was evidenced in the 2023 bank failures). exception to guarantee uninsured deposits, there can be
Financial services institutions are interrelated as a result no guarantee that the FDIC will invoke the systemic risk
of trading, clearing, counterparty or other relationships. The exception in connection with any future bank failures or that
Company has exposure to many different counterparties, the government would otherwise take any action to provide
and the Company routinely executes and settles liquidity to troubled institutions. Further, even if
transactions with counterparties in the financial services governmental support for financial institutions is available in
industry, including brokers and dealers, commercial banks, the future, it may not be sufficient to address systemic risks.
investment banks, mutual and hedge funds, and other Loss of customer deposits could increase the
institutional counterparties. As a result, defaults by, or even Company’s funding costs The Company relies on
rumors or questions about the soundness, strength or customer deposits as a low-cost and stable source of
stability of, one or more financial services institutions, or the funding. The Company competes with banks and other
financial services industry generally, could lead to losses or financial services companies for deposits, including those
defaults by the Company or by other institutions and impact that offer online channels. Recent declines in short-term

147
interest rates have generally lowered the Company’s Reserve Board or FHLB) or that the Company and USBNA
deposit funding costs. However, competition for deposits maintain minimum supervisory ratings. If the Company or
could increase to the extent the Federal Reserve continues USBNA were to experience financial or regulatory issues, it
the normalization of its balance sheet through quantitative could affect the Company’s or USBNA's ability to access
tightening. Increased competition could negatively impact liquidity facilities, including at times when the Company or
the Company’s ability to realize further improvement in USBNA needs additional liquidity for the operation of its
deposit funding costs, even if short-term rates continue to business. If the Company or USBNA were to lose access
decline. If short-term interest rates were to increase, the to these liquidity sources, it could have a material adverse
Company would expect more intense competition in effect on the Company’s operations and financial condition.
deposit pricing. Competition and higher short-term interest
The Company relies on dividends from its subsidiaries
rates may cause the Company to increase the interest rates
for its liquidity needs, and the payment of those
it pays on deposits. If the Company’s competitors raise the
dividends is limited by laws and regulations The
interest rates they pay on deposits, or lower the interest
Company is a separate and distinct legal entity from
rates they pay on deposits by less than the Company, the
USBNA and the Company’s non-bank subsidiaries. The
Company’s funding costs may increase, either because the
Company receives a significant portion of its cash from
Company raises the interest rates it pays on deposits to
dividends paid by its subsidiaries. These dividends are the
avoid losing deposits to competitors or because the
principal source of funds to pay dividends on the
Company loses deposits to competitors and must rely on
Company’s stock and interest and principal on its debt.
more expensive sources of funding. Higher funding costs
Various federal and state laws and regulations limit the
reduce the Company’s net interest margin and net interest
amount of dividends that USBNA and certain of the
income.
Company’s non-bank subsidiaries may pay to the Company
Checking and savings account balances and other
without regulatory approval. Also, the Company’s right to
forms of customer deposits may decrease when customers
participate in a distribution of assets upon a subsidiary’s
perceive alternative investments, such as the stock market,
liquidation or reorganization is subject to prior claims of the
as providing a better risk/return tradeoff. When customers
subsidiary’s creditors, except to the extent that any of the
move money out of bank deposits and into other
Company’s claims as a creditor of that subsidiary may be
investments, the Company may lose a relatively low-cost
recognized. Refer to “Supervision and Regulation” in the
source of funds, increasing the Company’s funding costs
Company’s Annual Report on Form 10-K for additional
and reducing the Company’s net interest income. In
information regarding limitations on the amount of
addition, mass withdrawals of deposits occurred at certain
dividends USBNA may pay.
banks that failed in 2023, seemingly triggered by losses in
the banks’ investment securities portfolios and concerns Competitive and Strategic Risk
about uninsured and uncollateralized deposits. A loss in the
The financial services industry is highly competitive,
value of the Company’s investment or loan portfolio,
and competitive pressures could intensify and
perceived concerns regarding the Company’s and
adversely affect the Company’s financial results The
USBNA’s capital positions or perceived concerns regarding
Company operates in a highly competitive industry that
the level of USBNA’s uninsured and uncollateralized
could become even more competitive as a result of
deposits could cause rapid and significant deposit
legislative, regulatory and technological changes, as well
outflows. This risk is exacerbated by technological
as continued industry consolidation. This consolidation may
developments and changes in banking relationships, such
produce larger, better-capitalized and more geographically
as customers maintaining accounts at multiple banks,
diverse companies that are capable of offering a wider
which increase the ease and speed with which depositors
array of financial products and services at more
are able to move their deposits. The potential speed of
competitive prices. The Company competes with other
deposit withdrawals may be further accelerated due to the
commercial banks, savings and loan associations, mutual
way information, including false information or unfounded
savings banks, finance companies, mortgage banking
rumors, can be spread quickly through social media and
companies, credit unions, investment companies, credit
other online channels. If USBNA were to experience a
card companies, and a variety of other financial services
significant outflow of deposits, the Company may face
and advisory companies. Legislative or regulatory changes
increased funding costs, suffer losses and have a reduced
also could lead to increased competition in the financial
ability to raise new capital.
services sector.
The Company could lose access to sources of liquidity The adoption and rapid growth of new technologies,
if it were to experience financial or regulatory issues including generative AI, cryptocurrencies and blockchain
The Company has access to sources of liquidity provided and other distributed ledger technologies, have required
by the Federal Reserve Bank, such as the Federal Reserve the Company to invest resources to adapt its systems,
Bank discount window and other liquidity facilities that the products and services, and it expects to continue to make
Federal Reserve Board may establish from time to time, as similar investments. In addition, technology has lowered
well as liquidity provided by the FHLB. To access these barriers to entry and made it possible for non-banks to offer
sources of liquidity, the Federal Reserve Board or FHLB products and services, such as loans and payment
may impose conditions that the Company and USBNA are services, that traditionally were banking products, and
in sound financial condition (as determined by the Federal made it possible for technology companies to compete with

148 U.S. Bancorp 2024 Annual Report

financial institutions in providing electronic, internet-based, environment to inform any changes required, take
and mobile phone–based financial solutions. Competition advantage of new opportunities and/or respond to
with non-banks, including technology companies, to unexpected challenges. Initiatives include focusing on
provide financial products and services is intensifying. In customer growth with tailored products and experiences
particular, the activity of financial technology companies that meet customer needs; executing disciplined strategies
(“fintechs”) has grown significantly over recent years and is to grow and maintain sufficient capital levels as part of
expected to continue to grow. Fintechs have and may preserving the Company’s financial position and risk
continue to offer bank or bank-like products. For example, a appetite; and partnering with or acquiring and integrating
number of fintechs have applied for bank or industrial loan financial services businesses or assets. The Company’s
charters, which, in some cases, have been granted. In initiatives are impacted by internal factors, rapid pace of
addition, other fintechs have partnered with existing banks change from an evolving competitive landscape, increased
to allow them to offer deposit products or payment services cybersecurity threats, accelerated digitalization, and
to their customers. Many of these companies, including the emerging technologies. Execution of these initiatives is also
Company’s competitors, have fewer regulatory constraints, impacted by the Company’s response to external economic
and some have lower cost structures, in part due to lack of conditions, global political and economic uncertainty, and
physical structures. In addition, future regulatory regulatory factors that are beyond its control. The
developments may increase the ability of fintechs and other Company’s future growth and the value of its businesses
competitors to compete with traditional banks, including will depend, in part, on its ability to effectively implement its
through the use of cryptocurrency and other digital assets business strategy. If the Company is not able to
or alternative payment systems. Also, the potential need to successfully execute its business strategy, then the
adapt to industry changes in information technology Company’s competitive position, reputation, prospects for
systems, including potential upgrades relating to digital growth, and results of operations may be adversely
assets, on which the Company and financial services affected.
industry are highly dependent, could present operational
The Company may not be able to complete future
issues and require capital spending. The Company’s ability
acquisitions, and completed acquisitions may not
to compete successfully depends on a number of factors,
produce revenue enhancements or cost savings at
including, among others, its ability to develop and execute
levels or within timeframes originally anticipated, may
strategic plans and initiatives; developing, maintaining and
result in unforeseen integration difficulties, and may
building long-term customer relationships based on quality
dilute existing shareholders’ interests The Company
service, competitive prices, high ethical standards and
regularly explores opportunities to acquire financial
safe, sound assets; and industry and general economic
services businesses or assets and may also consider
trends. A failure to compete effectively could contribute to
opportunities to acquire other banks or financial institutions.
downward price pressure on the Company’s products or
The Company cannot predict the number, size or timing of
services or a loss of market share.
acquisitions it might pursue.
The Company may need to lower prices on existing The Company must generally receive federal regulatory
products and services and develop and introduce new approval before it can acquire a bank or bank holding
products and services to maintain market share The company. The Company’s ability to pursue or complete an
Company’s success depends, in part, on its ability to adapt attractive acquisition could be negatively impacted by
its products and services to evolving customer preferences regulatory delay or other regulatory issues. The Company
and industry standards. There is increasing pressure to cannot be certain when or if, or on what terms and
provide products and services at lower prices. Lower conditions, any required regulatory approvals will be
prices can reduce the Company’s net interest margin and granted. For example, the Company may be required to sell
revenues from its fee-based products and services. In branches as a condition to receiving regulatory approval for
addition, the adoption of new technologies or further bank acquisitions. In addition, in 2024 the OCC issued a
developments in current technologies require the Company policy statement on bank mergers that may result in more
to make substantial expenditures to modify or adapt its scrutiny being applied to mergers with a resulting institution
existing products and services. Also, these and other with $50 billion or more in total assets. The Company is
capital investments in the Company’s businesses may not unable to predict at this time what effects the OCC’s policy
produce expected growth in earnings anticipated at the statement may have on mergers involving USBNA, but it
time of the expenditure. The Company might not be may result in extended timelines for merger approvals. If
successful in developing or introducing new products and the Company commits certain regulatory violations,
services, adapting to changing customer preferences and including those that result in a downgrade in certain of the
spending and saving habits (which may be altered Company’s bank regulatory ratings, governmental
significantly and with little warning), achieving market authorities could, as a consequence, preclude it from
acceptance of its products and services, or sufficiently pursuing future acquisitions for a period of time. In addition,
developing and maintaining loyal customer relationships. the Company’s ability to complete future acquisitions may
depend on factors outside its control, including changes in
The Company may not realize the full value of its
the presidential administration or in one or both houses of
strategic plans and initiatives As the Company develops
Congress and public sentiment regarding bank mergers.
its strategic initiatives, it reviews the internal and external
Acquisition activity by large banking organizations, such as

149
the Company, continues to draw regulatory and policy circumstances, yet might result in the Company’s reporting
focus, and future changes could impact consideration of materially different results than would have been reported
and regulatory approval processes for certain acquisitions. under a different alternative.
In addition, acquisitions by large banking organizations Certain accounting policies are critical to presenting the
such as the Company may receive negative coverage in Company’s financial condition and results of operations.
the media or negative attention by certain members of They require management to make difficult, subjective or
Congress or other policymakers. If the Company were to complex judgments about matters that are uncertain.
receive significant negative publicity in connection with a Materially different amounts could be reported under
proposed acquisition, it could damage the Company’s different conditions or using different assumptions or
reputation and impede the Company’s ability to complete estimates. These critical accounting policies include the
the acquisition. allowance for credit losses, estimations of fair value, the
There can be no assurance that acquisitions the valuation of MSRs, and income taxes. Because of the
Company completes will have the anticipated positive uncertainty of estimates involved in these matters, the
results, including results related to expected revenue Company may be required to do one or more of the
increases, cost savings, increases in geographic or following: significantly increase the allowance for credit
product presence, and/or other projected benefits. The losses and/or sustain credit losses that are significantly
Company may incur substantial expenses related to higher than the reserve provided, recognize significant
acquisitions and integration of acquired companies. losses on the remeasurement of certain asset and liability
Successful integration of an acquired company has in the balances, or significantly increase its accrued taxes
past presented and may in the future present challenges liability. For more information, refer to “Critical Accounting
due to differences in systems, operations, policies and Policies” in this Annual Report. In addition, the FASB, SEC
procedures, management teams and corporate cultures and other regulatory agencies may issue new or amend
and may be more costly or difficult to complete than existing accounting and reporting standards or change
anticipated or have unanticipated adverse results. existing interpretations of those standards that could
Integration efforts could divert management’s attention and materially affect the Company's financial statements.
resources, which could adversely affect the Company’s
The Company’s investments in certain tax-advantaged
operations or results. Integration efforts could result in
projects may not generate returns as anticipated and
higher than expected customer loss, deposit attrition, loss
may have an adverse impact on the Company’s
of key employees, issues with systems and technology,
financial results The Company invests in certain tax-
disruption of the Company’s businesses or the businesses
advantaged projects promoting affordable housing,
of the acquired company, or otherwise adversely affect the
community development and renewable energy resources.
Company’s ability to maintain relationships with customers
The Company’s investments in these projects are designed
and employees or achieve the anticipated benefits of the
to generate a return primarily through the realization of
acquisition. Also, the negative effect of any divestitures
federal and state income tax credits, and other tax benefits,
required by regulatory authorities in acquisitions or
over specified time periods. The Company is subject to the
business combinations may be greater than expected. In
risk that previously recorded tax credits, which remain
addition, future acquisitions may also expose the Company
subject to recapture by taxing authorities based on
to increased legal or regulatory risks. Finally, future
compliance features required to be met at the project level,
acquisitions could be material to the Company, and it may
will fail to meet certain government compliance
issue additional shares of stock to pay for those
requirements and will not be able to be realized. The
acquisitions, which would dilute current shareholders’
possible inability to realize these tax credit and other tax
ownership interests.
benefits can have a negative impact on the Company’s
Accounting and Tax Risk financial results. The risk of not being able to realize the tax
credits and other tax benefits depends on many factors
The Company’s reported financial results depend on
outside of the Company’s control, including changes in the
management’s selection of accounting methods and
applicable tax code and the ability of the projects to be
certain assumptions and estimates, which, if incorrect,
completed.
could cause unexpected losses in the future The
Company’s accounting policies and methods are General Risk Factors
fundamental to how the Company records and reports its
The Company’s framework for managing risks may not
financial condition and results of operations. The
be effective in mitigating risk and loss to the Company
Company’s management must exercise judgment in
The Company’s risk management framework seeks to
selecting and applying many of these accounting policies
mitigate risk and loss. The Company has established
and methods, so they comply with generally accepted
processes and procedures intended to identify, measure,
accounting principles and reflect management’s judgment
monitor, report, and analyze the types of risk to which it is
regarding the most appropriate manner to report the
subject, including liquidity risk, credit risk, market risk,
Company’s financial condition and results of operations. In
interest rate risk, compliance risk, strategic risk, reputation
some cases, management must select the accounting
risk, and operational risk related to its employees, systems
policy or method to apply from two or more alternatives,
and vendors, among others. However, as with any risk
any of which might be reasonable under the
management framework, there are inherent limitations to

150 U.S. Bancorp 2024 Annual Report

the Company’s risk management strategies as there may A downgrade in the Company’s credit ratings could
exist, or develop in the future, risks that it has not have a material adverse effect on its liquidity, funding
appropriately anticipated or identified. In addition, the costs and access to capital markets The Company’s
Company relies on quantitative models to measure certain credit ratings, which are subject to credit agencies’
risks and to estimate certain financial values, and these ongoing review of a number of factors, including factors not
models could fail to predict future events or exposures within the Company’s control, are important to the
accurately. The Company must also develop and maintain Company’s liquidity. A reduction in one or more of the
a culture of risk management among its employees, as well Company’s credit ratings could adversely affect its liquidity,
as manage risks associated with third parties, and could increase its funding costs or limit its access to the capital
fail to do so effectively. If the Company’s risk management markets. Further, a downgrade could decrease the number
framework proves ineffective, the Company could incur of investors and counterparties willing or able, contractually
litigation and negative regulatory consequences and suffer or otherwise, to do business with or lend to the Company,
unexpected losses that could affect its financial condition thereby adversely affecting the Company’s competitive
or results of operations. position. There can be no assurance that the Company will
maintain its current ratings and outlooks or whether or when
The Company’s business could suffer if it fails to attract
any downgrades could occur.
and retain skilled employees The Company’s success
depends, in large part, on its ability to attract and retain key
employees. Competition for the best people in most
activities the Company engages in can be intense.
The employment market has continued to evolve,
influenced by macroeconomic shifts, changes in social
norms post-pandemic and technology advancements.
Continued pressures on competitive compensation,
benefits and flexible work arrangements continue to be
focus areas.
Employees have also continued to shift their focus to
better work-life balance, improved advancement
opportunities and skill specific development, and many
businesses, including the Company, have had to adapt
quickly to the changing environment. The Company’s ability
to compete successfully for talent has been and may
continue to be affected by its ability to adapt quickly to
such shifts in employee focus, and there is no assurance
that these developments will not cause increased turnover
or impede the Company’s ability to retain and attract high
caliber employees.

151
Managing Committee

Andrew Cecere Terrance R. Dolan

Mr. Cecere, 64, is Chairman and Chief Executive Officer of Mr. Dolan, 63, is Vice Chair and Chief Administration Officer
U.S. Bancorp. Mr. Cecere has served as Chief Executive of U.S. Bancorp. Mr. Dolan has served in this position since
Officer since April 2017 and Chairman since April 2018. He September 2023. From August 2016 to August 2023, he
also served as President from January 2016 to May served as Vice Chair and Chief Financial Officer of U.S.
2024. In April 2025, he will serve as Executive Chairman of Bancorp.
U.S. Bancorp’s Board of Directors, continuing to lead the
Board and supporting Gunjan Kedia as she assumes the
Revathi N. Dominski
role of Chief Executive Officer. Ms. Dominski, 54, is Senior Executive Vice President and
Chief Social Responsibility Officer of U.S. Bancorp and
Souheil S. Badran President of the U.S. Bank Foundation. Ms. Dominski has
Mr. Badran, 60, is Senior Executive Vice President and served as Senior Executive Vice President and Chief Social
Chief Operations Officer of U.S. Bancorp. Mr. Badran has Responsibility Officer since April 2023. She joined U.S.
served in this position since joining U.S. Bancorp in Bancorp in June 2015 as President of the U.S. Bank
December 2022. From January 2019 until November 2022, Foundation and Senior Vice President of Corporate Social
he served as Executive Vice President and Chief Operating Responsibility.
Officer at Northwestern Mutual, having also served as Chief
Innovation Officer from January 2019 until September 2019.
Sekou Kaalund
Mr. Kaalund, 49, is Senior Executive Vice President, Head
Elcio R.T. Barcelos of Branch and Small Business Banking of U.S. Bancorp. Mr
Mr. Barcelos, 54, is Senior Executive Vice President and Kaalund previously was Executive Vice President from
Chief Human Resources Officer of U.S. Bancorp. Mr. December 2022 to January 2025 and has served as Head
Barcelos has served in this position since joining U.S. of Branch and Small Business Banking since joining U.S.
Bancorp in September 2020. Prior to joining U.S. Bancorp, Bancorp in December 2022. Prior to joining U.S. Bancorp,
he served in a leadership role at Federal National Mortgage he served as the Head of Consumer Banking for the
Association (Fannie Mae). Northeast Division at JPMorgan Chase from September
2020 to December 2022. He served as Managing Director
James L. Chosy and Head of Advancing Black Pathways at JPMorgan
Mr. Chosy, 61, is Senior Executive Vice President and Chase from August 2018 to September 2020 and was a
General Counsel of U.S. Bancorp. Mr. Chosy has served in Managing Director across several areas in the Corporate
this position since March 2013. He also served as Investment Bank at JPMorgan Chase, including U.S. Public
Corporate Secretary of U.S. Bancorp from June 2022 until and Corporate Pensions and Global Private Equity and Real
December 2023 and from March 2013 until April 2016. Estate Fund Services, from July 2007 to September 2020.

Gregory G. Cunningham Gunjan Kedia

Mr. Cunningham, 61, is Senior Executive Vice President Ms. Kedia, 54, is President of U.S. Bancorp and a member
and Chief Diversity Officer of U.S. Bancorp. Mr. of U.S. Bancorp’s Board of Directors. Ms. Kedia has served
Cunningham has served in this position since July 2020. as President since May 2024. From June 2023 to May 2024,
From July 2019 until July 2020, he served as Senior Vice she served as Vice Chair, Wealth, Corporate, Commercial
President and Chief Diversity Officer of U.S. Bancorp, and Institutional Banking, of U.S. Bancorp. From December
having served as Vice President of Customer Engagement 2016 to June 2023, she served as Vice Chair, Wealth
of U.S. Bancorp from October 2015, when he joined U.S. Management and Investment Services, of U.S. Bancorp. In
Bancorp, until July 2019. April 2025, she will assume the additional role of Chief
Executive Officer.
Venkatachari Dilip
Courtney Kelso
Mr. Dilip, 65, is Senior Executive Vice President and Chief
Ms. Kelso, 47, is Senior Executive Vice President, Head of
Information and Technology Officer of U.S. Bancorp. Mr.
Payments: Consumer and Small Business of U.S. Bancorp.
Dilip previously was an Executive Vice President from
Ms. Kelso has served in this position since joining U.S.
September 2018 to April 2023 and has served as Chief
Bancorp in February 2025. Prior to joining U.S. Bancorp,
Information and Technology Officer since September 2018,
she served as Executive Vice President and Head of Card
when he joined U.S. Bancorp.
Products, Global Commercial Services at American
Express from February 2021 to February 2024. From
February 2018 to February 2021, she served as Senior Vice
President of US Small Business, Co-Brand and Corporate
Cards, Global Commercial Services at American Express.

152 U.S. Bancorp 2024 Annual Report

Felicia La Forgia Mark G. Runkel
Ms. La Forgia, 56, is Senior Executive Vice President, Head Mr. Runkel, 48, is Senior Executive Vice President, Head of
of the Institutional Client Group (ICG) of U.S. Bancorp. Ms. Payments: Merchant and Institutional. Mr. Runkel has
La Forgia previously was Executive Vice President from served in this position since January 2025. From August
July 2016 to January 2025 and has served as Head of ICG 2021 to January 2025, he served as Chief Transformation
since June 2024. From June 2020 to June 2024, she served Officer of U.S. Bancorp. From December 2013 to August
as Head of Corporate Banking of U.S. Bancorp. 2021, he served as Senior Executive Vice President and
Chief Credit Officer of U.S. Bancorp.
Stephen L. Philipson
Mr. Philipson, 46, is Senior Executive Vice President, Head John C. Stern
of Wealth, Corporate, Commercial and Institutional Banking Mr. Stern, 46, is Senior Executive Vice President and Chief
(WCIB). Mr. Philipson has served as Head of WCIB since Financial Officer of U.S. Bancorp. Mr. Stern has served as
June 2024 and Senior Executive Vice President since April Senior Executive Vice President since April 2023 and Chief
2023. From April 2023 to June 2024, he served as Head of Financial Officer since September 2023. He also served as
Global Markets and Specialized Finance of U.S. Bancorp. Head of Finance of U.S. Bancorp from May 2023 to August
From October 2017 to April 2023, he served as Head of 2023. He served as Executive Vice President of U.S.
Fixed Income and Capital Markets of U.S. Bancorp. Bancorp from July 2013 through April 2023. From May 2021
until May 2023, he served as President of the Global
Jodi L. Richard Corporate Trust and Custody business of U.S. Bancorp.
Ms. Richard, 56, is Vice Chair and Chief Risk Officer of U.S. Previously, he served as Treasurer of U.S. Bancorp from
Bancorp. Ms. Richard has served in this position since July 2013 to May 2021.
October 2018. She served as Executive Vice President and
Chief Operational Risk Officer of U.S. Bancorp from Dominic V. Venturo
January 2018 until October 2018. Mr. Venturo, 58, is Senior Executive Vice President and
Chief Digital Officer of U.S. Bancorp. Mr. Venturo has
Arijit Roy served in this position since July 2020. From January 2015
Mr. Roy, 48, is Senior Executive Vice President, Head of until July 2020, he served as Executive Vice President and
Consumer and Business Banking Products of U.S. Chief Innovation Officer of U.S. Bancorp.
Bancorp. Mr. Roy previously was an Executive Vice
President from August 2023 to October 2024 and has
served as Head of Consumer and Business Banking
Products since July 2024. Prior to July 2024, he served as
Head of Consumer and Segment Solutions since joining
U.S. Bancorp in July 2022. Prior to joining U.S. Bancorp, he
held various leadership positions at Truist, including
Executive Vice President and Head of Consumer Products
from April 2022 to July 2022, Executive Vice President of
Deposits, Small Business Banking, Strategy and Analytics
from July 2021 to April 2022, and Senior Vice President of
Strategy, Digital Integration and Transformation from
September 2019 to July 2021.

153
Directors

Andrew Cecere1,6 Roland A. Hernandez1,3,4

Chairman and Chief Executive Officer Founding Principal and Chief Executive Officer
U.S. Bancorp Hernandez Media Ventures
(Media)
Warner L. Baxter1,2,3
Retired Executive Chairman and Former Chairman, Gunjan Kedia1
President and Chief Executive Officer President
Ameren Corporation U.S. Bancorp
(Energy)
Richard P. McKenney4,6
1,5,6
Dorothy Bridges President and Chief Executive Officer
Chief Executive Officer Unum Group
Metropolitan Economic Development Association (Meda) (Financial protection benefits)
(Economic Development)
Yusuf I. Mehdi5,6
Elizabeth L. Buse2,6 Executive Vice President,
Former Chief Executive Officer Consumer Chief Marketing Officer
Monitise plc Microsoft Corporation
(Financial services) (Technology)

Alan B. Colberg2,5 Loretta E. Reynolds5,6

Retired President and Chief Executive Officer Founder and Chief Executive Officer
Assurant, Inc. LEReynolds Group, LLC
(Financial services and specialty insurance) (Information Technology)

Kimberly N. Ellison-Taylor2,5 John P. Wiehoff1,6

Founder and Chief Executive Officer Retired Chairman and Chief Executive Officer
KET Solutions, LLC C.H. Robinson Worldwide, Inc.
(Technology) (Transportation and logistics services)

Aleem Gillani2,6 Scott W. Wine1,3,4

Retired Corporate Executive Vice President and Former Chief Executive Officer
Chief Financial Officer CNH Industrial N.V.
SunTrust Banks, Inc. (Agricultural machinery)
(Financial services)

Kimberly J. Harris1,3,4
Retired President and Chief Executive Officer
Puget Energy, Inc.
(Energy)
1. Executive Committee
2. Audit Committee
3. Compensation and Human Resources Committee
4. Governance Committee
5. Public Responsibility Committee
6. Risk Management Committee

154 U.S. Bancorp 2024 Annual Report

C O R P O R AT E I N F O R M AT I O N

Executive offices Investor relations contact Ethics

U.S. Bancorp George Andersen At U.S. Bancorp, our commitment to high
800 Nicollet Mall Senior Vice President, ethical standards guides everything we do.
Minneapolis, MN 55402 Director of Investor Relations Demonstrating this commitment through
[email protected] our words and actions is how each of us
Common stock transfer Phone: 612-303-3620 does the right thing every day for our
customers, shareholders, communities and
agent and registrar
Financial information each other. Our ethical culture has been
Computershare acts as our transfer agent recognized by the Ethisphere® Institute,
and registrar, dividend paying agent and U.S. Bancorp news and financial results are which named us to its World’s Most Ethical
available through our website and by mail. Companies® list for the 10th time in 2024.
dividend reinvestment plan administrator
and maintains all shareholder records Website: For information about Each year, every employee certifies
for the Company. Inquiries related to U.S. Bancorp, including news, financial compliance with the letter and spirit of our
shareholder records, stock transfers, results, annual reports and other Code of Ethics and Business Conduct.
changes of ownership, lost stock documents filed with the Securities
certificates, changes of address and Exchange Commission, visit For details about our Code of Ethics and
and dividend payment should be usbank.com and click on About Business Conduct, visit usbank.com/
directed to the transfer agent at: Us and then Investor Relations. about-us-bank/ethics and click on
Code of Ethics and Business Conduct.
Computershare Mail: At your request, we will mail to you
P.O. Box 505000 our quarterly earnings, news releases, At U.S. Bancorp, we are committed to
Louisville, KY 40233 quarterly financial data reported on Form a culture that fosters innovation and helps
Phone: 888-778-1311 or 10-Q, Form 10-K and additional copies us deepen our relationships with our
201-680-6578 (international calls) of our annual reports. Please contact: stakeholders: our employees, customers,
U.S. Bancorp Investor Relations shareholders and communities.
computershare.com/investor
800 Nicollet Mall Our employees bring their whole selves to
Registered or Certified Mail: Minneapolis, MN 55402
Computershare work. We respect and value each other’s
[email protected] differences, strengths and perspectives,
462 South 4th Street, Suite 1600
Phone: 866-775-9668 and we embrace the communities we serve.
Louisville, KY 40202
This makes us stronger, more innovative
Telephone representatives are available Media requests and more responsive to our clients’ needs.
weekdays from 8 a.m. to 6 p.m., Central
David R. Palombi To learn more visit
Time, and automated support is available
Executive Vice President usbank.com/about-us-bank.
24 hours a day, seven days a week.
Chief Communications Officer
Specific information about your account
is available on Computershare’s Public Affairs and Communications Equal opportunity
Investor Center website. [email protected]
U.S. Bancorp and our subsidiaries are
Phone: 612-303-3167
committed to providing Equal Employment
Independent auditor Opportunity to all employees and applicants
Privacy for employment. In keeping with this
Ernst & Young LLP serves as the
independent auditor for U.S. Bancorp. U.S. Bancorp is committed to commitment, employment decisions are
respecting the privacy of our customers made based on abilities, not race, color,
Common stock and safeguarding the financial and religion, creed, citizenship, national
personal information provided to us. origin or ancestry, gender, age, disability,
listing and trading To learn more about the U.S. Bancorp veteran status, sexual orientation, marital
U.S. Bancorp common stock is listed and commitment to protecting privacy, visit status, gender identity or expression,
traded on the New York Stock Exchange usbank.com and click on Privacy. genetic information or any other factors
under the ticker symbol USB. protected by law. The Company complies
Accessibility with municipal, state and federal fair
Dividends and U.S. Bancorp is committed to providing
employment laws, including regulations
applying to federal contractors.
reinvestment plan ready access to our products and services
so all of our customers, including people U.S. Bancorp, including each of our
U.S. Bancorp currently pays quarterly
with disabilities, can succeed financially. subsidiaries, is an equal opportunity
dividends on our common stock on or
To learn more, visit usbank.com and click employer committed to creating a
about the 15th day of January, April,
on Accessibility. diverse workforce.
July and October, subject to approval
by our Board of Directors. U.S. Bancorp
shareholders can choose to participate
in a plan that provides automatic
reinvestment of dividends and/or
optional cash purchase of additional
shares of U.S. Bancorp common stock.
For more information, please contact
our transfer agent, Computershare.

©2025 U.S. Bancorp

 Annual

U.S. Bancorp 2024 Annual Report

800 Nicollet Mall

Report
Minneapolis, MN 55402
800-USBANKS (872-2657)
usbank.com

2024