Company: USB-PA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000036104-25-000028
Chunk: 179

Company: US BANCORP \DE\
Filing Date: 2025-05-06
Form: 10-Q
Chunk 179
---
, not including valuation changes, included in mortgage banking revenue were $ 172million and $ 180million for the three months ended March 31, 2025 and 2024, respectively.

Changes in fair value of capitalized MSRs are summarized as follows:

| (Dollars in Millions)                           |     | Three Months Ended 
 March 31           |       | 2025 |   |       | 2024 |
|:------------------------------------------------|:----|:-------------------|------:|:-----|:--|------:|:-----|
| Balance at beginning of period                  |     | $                  | 3,369 |      | $ | 3,377 |      |
| Rights capitalized                              |     |                    |    59 |      |   |    55 |      |
| Rights sold                                     |     |                    |     1 |      |   |     — |      |
| Changes in fair value of MSRs                   |     |                    |       |      |   |       |      |
| Due to fluctuations in market interest rates(a) |     |                    |   -49 |      |   |   103 |      |
| Due to revised assumptions or models(b)         |     |                    |     4 |      |   |     8 |      |
| Other changes in fair value(c)                  |     |                    |   -72 |      |   |   -81 |      |
| Balance at end of period                        |     | $                  | 3,312 |      | $ | 3,462 |      |

(a) Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits.

(b) Includes changes in MSR value not caused by changes in market interest rates, such as changes in assumed cost to service, ancillary income and option adjusted spread, as well as the impact of any model changes.

(c) Primarily the change in MSR value from passage of time and cash flows realized (decay), but also includes the impact of changes to expected cash flows not associated with changes in market interest rates, such as the impact of delinquencies.

The estimated sensitivity to changes in interest rates of the fair value of the MSR portfolio and the related derivative instruments was as follows:

|                              |     |   | March 31, 2025 |         |   |      |        |   |     |        |   |     |        |   |      |