Company: USB-PA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000036104-25-000064
Chunk: 88

Company: US BANCORP \DE\
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 88
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 million and $141 million for the three months ended September 30, 2025 and 2024, respectively, and $548 million and $424 million for the nine months ended September 30, 2025 and 2024, respectively. The Company recognized $151 million and $135 million of expenses related to all of these investments for the three months ended September 30, 2025 and 2024, respectively, which were primarily included in tax expense.  The Company recognized $452 million and $418 million of expenses related to all of these investments for the nine months ended September 30, 2025 and 2024, respectively, which were primarily included in tax expense.The Company is not required to consolidate VIEs in which it has concluded it does not have a controlling financial interest, and thus is not the primary beneficiary. In such cases, the Company does not have both the power to direct the entities’ most significant activities and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. The assets of each unconsolidated VIE can only be used to settle the VIE’s obligations and if the VIE defaults on its obligations, creditors do not have general recourse to the Company. The Company’s investments in these unconsolidated VIEs are carried in other assets on the Consolidated Balance Sheet. The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are generally carried in other liabilities on the Consolidated Balance Sheet. The Company’s maximum exposure to loss from these unconsolidated VIEs include the investment 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)September 30, 2025December 31, 2024Investment carrying amount$9,535 $8,107 Unfunded capital and other commitments5,954 5,032 Maximum exposure to loss9,