Company: USB-PA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000036104-25-000055
Chunk: 229

Company: US BANCORP \DE\
Filing Date: 2025-08-07
Form: 10-Q
Chunk 229
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 Payments  |         |     |    |
|:------------------------------------|:----|:-----------------|------:|:----|:-----------------|----:|:----|:----------|--------:|:----|:---|
| Standby letters of credit           |     | $                |     — |     | $                |  24 |     | $         |  10,751 |     |    |
| Securities lending indemnifications |     |                  | 6,740 |     |                  |   — |     |           |   6,592 |     |    |
| Asset sales                         |     |                  |     — |     |                  | 109 |     |           |  13,118 |     | -a |
| Merchant processing                 |     |                  |   794 |     |                  |  66 |     |           | 160,513 |     |    |
| Other                               |     |                  |     — |     |                  |  21 |     |           |   3,634 |     |    |

(a) The maximum potential future payments do not include loan sales where the Company provides standard representation and warranties to the buyer against losses related to loan underwriting documentation defects that may have existed at the time of sale that generally are identified after the occurrence of a triggering event such as delinquency. For these types of loan sales, the maximum potential future payments is generally the unpaid principal balance of loans sold measured at the end of the current reporting period. Actual losses will be significantly less than the maximum exposure, as only a fraction of loans sold will have a representation and warranty breach, and any losses on repurchase would generally be mitigated by any collateral held against the loans.

Merchant Processing The Company, through its subsidiaries, provides merchant processing services. Under the rules of credit card associations, a merchant processor retains a contingent liability for credit card transactions processed. This contingent liability arises in the event of a billing dispute between the merchant and a cardholder that is ultimately resolved in the cardholder’s favor. In this situation, the transaction is “charged-back” to the merchant and the disputed amount is credited or otherwise refunded to the cardholder. If the Company is unable to collect this amount from the merchant, it bears the loss for the amount of the refund paid to the cardholder.

The Company currently processes card transactions in the United States, Canada and Europe through wholly-owned subsidiaries. In the event a merchant was unable to fulfill product or