Company: USB-PA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000036104-25-000055
Chunk: 176

Company: US BANCORP \DE\
Filing Date: 2025-08-07
Form: 10-Q
Chunk 176
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 during 2020 and 2021. This cumulative deferred impact was phased into the Company’s regulatory capital during 2022 through 2024. Beginning January 1, 2025, the regulatory capital requirements reflect the full implementation of the CECL methodology. Table 10 provides a summary of statutory regulatory capital ratios in effect for the Company at June 30, 2025 and December 31, 2024. All regulatory ratios exceeded regulatory “well-capitalized” requirements.

In July 2023, the U.S. federal bank regulatory authorities proposed a rule to refine the Basel III capital framework for financial institutions. The proposal incorporates elements of the international Basel Committee’s post-crisis reforms, including the Fundamental Review of the Trading Book to replace the existing market risk rule, and introduces new standardized approaches for credit risk, operational risk and credit valuation adjustment (CVA) risk. The proposal’s finalization could revise the risk-based capital measures applicable to the Company; however, until the proposal is finalized the exact impacts are unknown.

The Company believes certain other capital ratios are useful in evaluating its capital adequacy. The Company’s tangible common equity, as a percent of tangible assets and as a percent of risk-weighted assets determined in accordance with prescribed regulatory capital requirements under the standardized approach, was 6.1 percent and 9.0 percent, respectively, at June 30, 2025, compared with 5.8 percent and 8.5 percent, respectively, at December 31, 2024. Refer to “Non-GAAP Financial Measures” beginning on page 29for further information on these other capital ratios.

| TABLE 10 |     | Regulatory Capital Ratios |

| (Dollars in Millions)                                                                                            |     |   |         | June 30, 
 2025     |   |         | December 31, 
 2024         |
|:-----------------------------------------------------------------------------------------------------------------|:----|:--|--------:|:---------|:--|--------:|:-------------|
| Basel III standardized approach:                                                                                 |     |   |         |          |   |         |              |
| Common equity tier 1 capital                                                                                     |     | $ |  49,382 |          | $ |  47,877 |              |
| Tier 1 capital                                                                                                   |     |   |  56,630 |          |   |  55,129 |              |
| Total risk-based capital                                                                                         |     |   |  65,