Company: USB-PA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000036104-25-000028
Chunk: 177

Company: US BANCORP \DE\
Filing Date: 2025-05-06
Form: 10-Q
Chunk 177
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 recorded on the Company’s Consolidated Balance Sheet, net of unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. While the Company believes potential losses from these investments are remote, the maximum exposure was determined by assuming a scenario where the community-based business and housing projects completely fail and do not meet certain government compliance requirements resulting in recapture of the related tax credits.

The following table provides a summary of investments in community development and tax-advantaged VIEs that the Company has not consolidated:

| (Dollars in Millions)                  |     |   |       | March 31, 2025 |   |       | December 31, 2024 |
|:---------------------------------------|:----|:--|------:|:---------------|:--|------:|:------------------|
| Investment carrying amount             |     | $ | 8,703 |                | $ | 8,107 |                   |
| Unfunded capital and other commitments |     |   | 5,751 |                |   | 5,032 |                   |
| Maximum exposure to loss               |     |   | 8,522 |                |   | 8,435 |                   |

The Company also has noncontrolling financial investments in private investment funds and partnerships considered to be VIEs, which are not consolidated. The Company’s recorded investment in these entities, carried in other assets on the Consolidated Balance Sheet, was approximately $ 273million at March 31, 2025 and $ 264million at December 31, 2024. The maximum exposure to loss related to these VIEs was $ 398million at March 31, 2025 and $ 382million at December 31, 2024, representing the Company’s investment balance and its unfunded commitments to invest additional amounts.

The Company also held senior notes of $ 2.7billion as available-for-sale investment securities at March 31, 2025, compared with $ 3.2billion at December 31, 2024. These senior notes were issued by third-party securitization vehicles that held $ 3.1billion at March 31, 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