Company: USB-PA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000036104-25-000064
Chunk: 29

Company: US BANCORP \DE\
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 7
Chunk 29
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)(3)(2)Other43 47 137 143 Total other retail58 51 174 154 Total net charge-offs536 564 1,637 1,590 Provision for credit losses571 557 1,609 1,678 Balance at end of period$7,897 $7,927 $7,897 $7,927 ComponentsAllowance for loan losses$7,557 $7,560 Liability for unfunded credit commitments340 367 Total allowance for credit losses(1)$7,897 $7,927 Period-end loans(2)$382,517 $374,164 Nonperforming loans(3)1,610 1,809 Allowance for Credit Losses as a Percentage ofPeriod-end loans(1)/(2)2.06 %2.12 %Nonperforming loans(1)/(3)490 438 Nonperforming and accruing loans 90 days or more past due322 311 Nonperforming assets477 429 Annualized net charge-offs371 353 

U.S. Bancorp19

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 September 30, 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 objectives of providing proper transaction authorization and execution, proper system operations and proper oversight of third parties with whom it