Company: USB-PA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000036104-25-000028
Chunk: 143

Company: US BANCORP \DE\
Filing Date: 2025-05-06
Form: 10-Q
Chunk 143
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 Allowance for Credit Losses as a Percentage of            |     |                    |         |      |   |         |      |
| Period-end loans(1)/(2)                                   |     |                    |    2.07 | %    |   |    2.11 | %    |
| Nonperforming loans(1)/(3)                                |     |                    |     470 |      |   |     454 |      |
| Nonperforming and accruing loans 90 days or more past due |     |                    |     319 |      |   |     322 |      |
| Nonperforming assets                                      |     |                    |     458 |      |   |     443 |      |
| Annualized net charge-offs                                |     |                    |     357 |      |   |     403 |      |

| 18 |     | U.S. Bancorp |

Residual Value Risk Management The Company manages its risk to changes in the residual value of leased vehicles, office and business equipment, and other assets through disciplined residual valuation at the inception of a lease, diversification of its leased assets, regular residual asset valuation reviews and monitoring of residual value gains or losses upon the disposition of assets. As of March 31, 2025, no significant change in the amount of residual values or concentration of the portfolios had occurred since December 31, 2024. Refer to “Management’s Discussion and Analysis — Residual Value Risk Management” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, for further discussion on residual value risk management.

Operational Risk Management The Company operates in many different businesses in diverse markets and relies on the ability of its employees and systems to process a high number of transactions. Operational risk is inherent in all business activities, and the management of this risk is important to the achievement of the Company’s objectives. Business lines have direct and primary responsibility and accountability for identifying, controlling, and monitoring operational risks embedded in their business activities, including those additional or increased risks created by economic and financial disruptions.

The Company maintains a system of controls with the objective of providing proper transaction authorization and execution, proper system operations, proper oversight of third parties with whom it does business, safeguarding of assets from misuse or theft, and ensuring the reliability and security of financial and other data. The Company also maintains a cybersecurity risk program which provides centralized planning and management of related and interdependent work with a focus on risks from cybersecurity threats