Company: USB-PA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000036104-25-000055
Chunk: 150

Company: US BANCORP \DE\
Filing Date: 2025-08-07
Form: 10-Q
Chunk 150
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 loans, including the impact of a portfolio sale during the second quarter of 2025.

Commercial real estate loans decreased $678 million (1.4 percent) at June 30, 2025, compared with December 31, 2024, primarily due to loan workout activities and payoffs exceeding a reduced level of new originations.

Credit card loans decreased $327 million (1.1 percent) at June 30, 2025, compared with December 31, 2024, primarily as the result of customers seasonally paying down balances.

The Company generally retains portfolio loans through maturity; however, the Company’s intent may change over time based upon various factors such as ongoing asset/liability management activities, assessment of product profitability, credit risk, liquidity needs, and capital implications. If the Company’s intent or ability to hold an existing portfolio loan changes, it is transferred to loans held for sale.

Loans Held for Sale Loans held for sale, consisting primarily of residential mortgages to be sold in the secondary market, were $2.3 billion at June 30, 2025, compared with $2.6 billion at December 31, 2024. Almost all of the residential mortgage loans the Company originates or purchases for sale follow

guidelines that allow the loans to be sold into existing, highly liquid secondary markets, in particular in government agency transactions and to government sponsored enterprises (“GSEs”).

Investment Securities Investment securities totaled $168.5 billion at June 30, 2025, compared with $164.6 billion at December 31, 2024. The $3.8 billion (2.3 percent) increase was primarily due to net investment securities purchases driven by balance sheet positioning, along with a $763 million favorable change in net unrealized gains (losses) on available-for-sale investment securities.

The Company’s available-for-sale investment securities are carried at fair value with changes in fair value reflected in other comprehensive income (loss) unless a portion of a security’s unrealized loss is related to credit and an allowance for credit losses is necessary. At June 30, 2025, the Company’s net unrealized losses on available-for-sale investment securities were $6.0 billion ($4.5 billion net-of-tax), compared with net unrealized losses of $6.8 billion ($5.1 billion net-of-tax) at December 31, 2024. The favorable change in net unrealized gains (losses) was primarily due to increases in the fair value