Company: USB-PA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000036104-25-000064
Chunk: 208

Company: US BANCORP \DE\
Filing Date: 2025-11-05
Form: 10-Q
Chunk 208
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 the VIEs. The assets of each unconsolidated VIE can only be used to settle the VIE’s obligations and if the VIE defaults on its obligations, creditors do not have general recourse to the Company.

The Company’s investments in these unconsolidated VIEs are carried in other assets on the Consolidated Balance Sheet. The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are generally carried in other liabilities on the Consolidated Balance Sheet. The Company’s maximum exposure to loss from these unconsolidated VIEs include the investment recorded on the Company’s Consolidated Balance Sheet, net of unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. While the Company believes potential losses from these investments are remote, the maximum exposure was determined by assuming a scenario where the community-based business and housing projects completely fail and do not meet certain government compliance requirements resulting in recapture of the related tax credits.

The following table provides a summary of investments in community development and tax-advantaged VIEs that the Company has not consolidated:

| (Dollars in Millions)                  |     |   |       | September 30, 2025 |   |       | December 31, 2024 |
|:---------------------------------------|:----|:--|------:|:-------------------|:--|------:|:------------------|
| Investment carrying amount             |     | $ | 9,535 |                    | $ | 8,107 |                   |
| Unfunded capital and other commitments |     |   | 5,954 |                    |   | 5,032 |                   |
| Maximum exposure to loss               |     |   | 9,635 |                    |   | 8,435 |                   |

The Company also has noncontrolling financial investments in private investment funds and partnerships considered to be VIEs, which are not consolidated. The Company’s recorded investment in these entities, carried in other assets on the Consolidated Balance Sheet, was approximately $ 309million at September 30, 2025 and $ 264million at December 31, 2024. The maximum

| U.S. Bancorp |     | 51 |

exposure to loss related to these VIEs was $ 423million at September 30, 2025 and $ 382million at December 31, 202