Company: USB-PA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000036104-25-000064
Chunk: 146

Company: US BANCORP \DE\
Filing Date: 2025-11-05
Form: 10-Q
Chunk 146
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 rates paid on

interest-bearing deposits. The increase in noninterest income was driven by higher revenue across most categories.

Noninterest expense in the first nine months of 2025 was $267 million (2.1 percent) lower than the first nine months of 2024, primarily due to the impact of merger and integration charges in the prior year and lower compensation and employee benefits expense, partially offset by higher technology and communications expense and marketing and business development expense.

The provision for credit losses for the first nine months of 2025 was $69 million (4.1 percent) lower than the first nine months of 2024, primarily driven by the impact of loan portfolio sales during the second quarter of 2025 and improved credit quality. Refer to “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.

### Statement of Income Analysis
Net Interest Income Net interest income, on a taxable-equivalent basis, was $4.3 billion in the third quarter and $12.5 billion in the first nine months of 2025, representing increases of $85 million (2.0 percent) and $220 million (1.8 percent), respectively, compared with the same periods of 2024. The increases were primarily due to the favorable impact of the change in asset mix, fixed asset repricing and lower rates paid on interest-bearing deposits. Average earning assets for the third quarter and first nine months of 2025 were $10.3 billion (1.7 percent) and $9.6 billion (1.6 percent) higher, respectively, than the same periods of 2024, reflecting increases in investment securities, loans and other earning assets, partially offset by a decrease in interest-bearing deposits with banks. The net interest margin, on a taxable-equivalent basis, in the third quarter of 2025 was 2.75 percent, compared with 2.74 percent in the third quarter of 2024. The increase was primarily due to favorable asset mix and fix asset repricing. The net interest margin, on a taxable-equivalent basis, in the first nine months of 2025 was 2.71 percent, compared with 2.70 percent in the first nine months of 2024. The increase from the prior year was primarily due to improved asset mix and fixed asset repricing, partially offset by deposit mix.