Company: USB-PA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000036104-25-000064
Chunk: 206

Company: US BANCORP \DE\
Filing Date: 2025-11-05
Form: 10-Q
Chunk 206
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, $ 30million of total loans receiving an interest rate reduction and term extension, and $ 3million of total loans receiving an interest rate reduction, payment delay and term extension for the three months ended September 30, 2025, compared with $ 49million, $ 5million, and $ 1million for the three months ended September 30, 2024, respectively. Includes $ 59million of total loans receiving a payment delay and term extension, $ 44million of total loans receiving an interest rate reduction and term extension, and $ 5million of total loans receiving an interest rate reduction, payment delay and term extension for the nine months ended September 30, 2025, compared with $ 91million, $ 6million and $ 1million for the nine months ended September 30, 2024, respectively.

As of September 30, 2025 the Company had $ 368million of commitments to lend additional funds to borrowers whose terms of their outstanding owed balances have been modified.

| 50 |     | U.S. Bancorp |

| NOTE 5 |     | Accounting for Transfers and Servicing of Financial Assets and Variable |
|        |     | Interest Entities                                                       |

The Company transfers financial assets in the normal course of business. The majority of the Company’s financial asset transfers are residential mortgage loan sales primarily to GSEs, transfers of tax-advantaged investments, commercial loan sales through participation agreements, and other individual or portfolio loan and securities sales. In accordance with the accounting guidance for asset transfers, the Company considers any ongoing involvement with transferred assets in determining whether the assets can be derecognized from the balance sheet.Guarantees provided to certain third parties in connection with the transfer of assets are further discussed in Note 15.

For loans sold under participation agreements, the Company also considers whether the terms of the loan participation agreement meet the accounting definition of a participating interest. With the exception of servicing and certain performance-based guarantees, the Company’s continuing involvement with financial assets sold is minimal and generally limited to market customary representation and warranty clauses. Any gain or loss on sale depends on the previous carrying amount of the transferred financial assets, the consideration received, and any liabilities incurred in exchange for the transferred assets. Upon transfer, any servicing assets and other interests that continue to be held by the Company are initially recognized at fair value.For further information on MSRs, refer to Note 6. On a limited basis, the Company may acquire and package high-grade corporate