Company: USB-PA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000036104-25-000028
Chunk: 124

Company: US BANCORP \DE\
Filing Date: 2025-05-06
Form: 10-Q
Chunk 124
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 Wealth, Corporate, Commercial and Institutional Banking balances. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics. Average noninterest-bearing deposits for the first quarter of 2025 were $5.1 billion (6.0 percent) lower than the first quarter of 2024, driven by decreases in Wealth, Corporate, Commercial and Institutional Banking, and Consumer and Business Banking balances.

Provision for Credit Losses The provision for credit losses was $537 million in the first quarter of 2025, representing a decrease of $16 million (2.9 percent) from the first quarter of 2024, primarily driven by improved credit quality and loan portfolio mix, which contributed to a $10 million reserve release in the first quarter of 2025. Net charge-offs increased $59 million (12.1 percent) in the first quarter of 2025, compared with the first quarter of 2024, reflecting higher commercial and credit card loan net charge-offs. Refer to

| 4 |     | U.S. Bancorp |

“Corporate Risk Profile” for further information on the provision for credit losses, net charge-offs, nonperforming assets and other factors considered by the Company in assessing the credit quality of the loan portfolio and establishing the allowance for credit losses.

Noninterest Income Noninterest income was $2.8 billion in the first quarter of 2025, representing an increase of $136 million (5.0 percent) compared with the first quarter of 2024. The increase in noninterest income in the first quarter of 2025, compared with the first quarter of 2024, was primarily driven by higher trust and investment management fees, payment services revenue and other noninterest income. Trust and investment management fees increased primarily due to business growth and favorable market conditions. Payment services revenue increased primarily due to increases across all categories due to business volume growth. The increase in card revenue was partially offset by a reduction in prepaid card volumes from the prior year. Other noninterest income increased primarily due to higher tax credit investment activity and the impact of other favorable items.

Noninterest Expense Noninterest expense was $4.2 billion in the first quarter of 2025, representing a decrease of $227

million (5.1 percent) from the first quarter of 2024. The decrease in noninterest expense reflected the impact of merger and integration charges in the prior year, along with lower compensation and employee benefits expense and lower other noninterest