Company: USB-PA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000036104-25-000064
Chunk: 209

Company: US BANCORP \DE\
Filing Date: 2025-11-05
Form: 10-Q
Chunk 209
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4, representing the Company’s investment balance and its unfunded commitments to invest additional amounts.

The Company also held senior notes of $ 2.0billion as available-for-sale investment securities at September 30, 2025, compared with $ 3.2billion at December 31, 2024. These senior notes were issued by third-party securitization vehicles that held $ 2.3billion at September 30, 2025 and $ 3.6billion at December 31, 2024 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 $ 1million to $ 100million at September 30, 2025, compared with less than $ 1million to $ 79million at December 31, 2024.

The Company is required to consolidate VIEs in which it has concluded it has a controlling financial interest.The Company sponsors entities to which it transfers its interests in tax-advantaged investments to third parties. At September 30, 2025, approximately $ 5.9billion of the Company’s assets and $ 3.6billion of its liabilities included on the Consolidated Balance Sheet were related to community development and tax-advantaged investment VIEs which the Company has consolidated, primarily related to these transfers. These amounts compared to $ 6.4billion and $ 4.2billion, respectively, at December 31, 2024. The majority of the assets of these consolidated VIEs are reported in other assets, and the liabilities are reported in long-term debt and other liabilities. The assets of a particular VIE are the primary source of funds to settle its obligations. The creditors of the VIEs do not have recourse to the general credit of the Company. The Company’s exposure to the consolidated VIEs is generally limited to the carrying value of its variable interests plus any related tax credits previously recognized or transferred to others with a guarantee.

| NOTE 6 |     | Mortgage Servicing Rights |

The Company capitalizes MSRs as separate assets when loans are sold and servicing is retained. MSRs may also be purchased from others. The Company carries MSRs at fair value, with changes in the fair value recorded in earnings during the period in which they occur. The Company serviced $ 216