Company: USB-PA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000036104-25-000055
Chunk: 5

Company: US BANCORP \DE\
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 7
Chunk 5
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 2025, representing decreases of $67 million (11.8 percent) and $83 million (7.4 percent), respectively, from the same periods of 2024, primarily driven by the impact of loan portfolio sales during the second quarter of 2025 and improved credit quality. Net charge-offs increased $16 million (3.0 percent) in the second quarter of 2025, compared with the second quarter of 2024, driven by higher commercial real estate loan net charge-offs, partially offset by lower commercial loan net charge-offs. Net charge-offs increased $75 million (7.3 percent) in the first six months of 2025, compared with the first six months of 2024, primarily due to higher commercial and credit card loan net charge-offs. Refer to “Corporate Risk Profile” for further information on the provision for credit losses, net charge-offs, nonperforming assets and other factors considered by the Company in assessing the credit quality of the loan portfolio and establishing the allowance for credit losses.Noninterest Income Noninterest income was $2.9 billion in the second quarter and $5.8 billion in the first six months of 2025, representing increases of $109 million (3.9 percent) and $245 million (4.4 percent), respectively, compared with the same periods of 2024. The increases from the prior year reflected higher trust and investment management fees, payment services revenue and other noninterest income, partially offset by lower mortgage banking revenue. Trust and investment management fees increased primarily due to favorable market conditions and business growth. Payment services revenue increased primarily due to increases in merchant processing services revenue due to favorable rates and card revenue mainly due to higher sales volume. Other noninterest income increased primarily due to higher tax credit investment activity. Mortgage banking revenue decreased primarily due to a gain on the sale of mortgage servicing rights in the second quarter of 2024.

U.S. Bancorp5

 TABLE 2Noninterest Income

Three Months EndedJune 30Six Months EndedJune 30(Dollars in Millions)20252024PercentChange20252024PercentChangeCard revenue$442 $428 3.3 %$840 $820 2.4 %Corporate payment products revenue192 195 (1.5)381 379 .5 Merchant processing services474 454 4.4 889 855 4.0 Trust and investment management fees703 649 8.3 1,383 1,