Company: USB-PA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000036104-25-000055
Chunk: 168

Company: US BANCORP \DE\
Filing Date: 2025-08-07
Form: 10-Q
Chunk 168
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| Net interest income |     |     |           .34 | %           |     | .06 | %         |     | -.07 | %            |     | .63 | %          |     |               .25 | %           |     | .17 | %         |     | .01 | %            |     | 1.05 | %          |

| 20 |     | U.S. Bancorp |

Table 9 summarizes the projected impact to net interest income over the next 12 months of various potential interest rate changes. The sensitivity of the projected impact to net interest income over the next 12 months is dependent on balance sheet growth, product mix, customer behavior, deposit pricing and funding decisions. From December 31, 2024 to June 30, 2025, interest rate sensitivity to higher rates decreased slightly. As of June 30, 2025, the Company remains relatively neutral to a parallel shift in interest rates, as asset repricing continues to align closely with liability repricing. Net interest income simulation incorporates rate-sensitive deposit behavior that could result in changes in both projected deposit balances and mix under the various interest rate scenarios. Higher rate scenarios result in disintermediation of bank deposits and a mix shift into higher yielding deposits. Conversely, in lower rate scenarios, the analysis assumes that deposits will shift into lower yielding products. While the Company utilizes models and assumptions based on historical information and expected behaviors, actual outcomes could vary significantly. For larger interest rate shock scenarios, mortgage assets and deposits are expected to behave in a non-linear manner resulting in varying impacts to net interest income in those scenarios.

Use of Derivatives to Manage Interest Rate and Other Risks To manage the sensitivity of earnings and capital to interest rate, prepayment, credit, price and foreign currency fluctuations (asset and liability management positions),