Company: USB-PA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000036104-25-000028
Chunk: 178

Company: US BANCORP \DE\
Filing Date: 2025-05-06
Form: 10-Q
Chunk 178
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 net investments in unconsolidated VIEs, which exclude any unfunded capital commitments, ranged from less than $ 1million to $ 80million at March 31, 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 March 31, 2025, approximately $ 5.8billion of the Company’s assets and $ 3.5billion 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.

| 46 |     | U.S. Bancorp |

| 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 $ 216.7billion of residential mortgage loans for others at March 31, 2025, and $ 216.6billion at December 31, 2024, including subserviced mortgages with no corresponding MSR asset. Included in mortgage banking revenue are the MSR fair value changes arising from market rate and model assumption changes, net of the value change in derivatives used to economically hedge MSRs. These changes resulted in net gains of $ 2million and net losses of $ 3million for the three months ended March 31, 2025 and 2024, respectively. Loan servicing and ancillary fees