Company: USB-PA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000036104-25-000064
Chunk: 210

Company: US BANCORP \DE\
Filing Date: 2025-11-05
Form: 10-Q
Chunk 210
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      |   |  -188 |      |
| Changes in fair value of MSRs                   |     |                    |       |      |   |       |      |                   |       |      |   |       |      |
| Due to fluctuations in market interest rates(a) |     |                    |    -3 |      |   |  -121 |      |                   |   -43 |      |   |    27 |      |
| Due to revised assumptions or models(b)         |     |                    |    13 |      |   |     3 |      |                   |    23 |      |   |    44 |      |
| Other changes in fair value(c)                  |     |                    |   -98 |      |   |   -94 |      |                   |  -256 |      |   |  -265 |      |
| Balance at end of period                        |     | $                  | 3,289 |      | $ | 3,187 |      | $                 | 3,289 |      | $ | 3,187 |      |

(a) Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits.

(b) Includes changes in MSR value not caused by changes in market interest rates, such as changes in assumed cost to service, ancillary income and option adjusted spread, as well as the impact of any model changes.

(c) Primarily the change in MSR value from passage of time and cash flows realized (decay), but also includes the impact of changes to expected cash flows not associated with changes in market interest rates, such as the impact of delinquencies.

The estimated sensitivity to changes in interest rates of the fair value of the MSR portfolio and the related derivative instruments was as follows:

|                              |     |   | September 30, 2025 |         |   |      |        |   |     |        |   |     |        |   |      |        |   |      |         |   | December 31, 2024 |         |   |      |        |   |     |        |   |     |        |   |      |        |   |      |         |
|:-----------------------------|:----|:--|-------------------:|--------:|:--|-----:|-------:|:--|----:|-------:|:--|----:|:-------|:--|-----: