Company: USB-PA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000036104-25-000064
Chunk: 239

Company: US BANCORP \DE\
Filing Date: 2025-11-05
Form: 10-Q
Chunk 239
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. Noninterest income and expenses directly managed by each business segment, including fees, service charges, salaries and benefits, and other direct revenues and costs, are accounted for within each segment’s financial results in a manner similar to the consolidated financial statements. Occupancy costs are allocated based on utilization of facilities by the business segments. Generally, operating losses are charged to the business segment when the loss event is realized in a manner similar to a loan charge-off. Noninterest expenses incurred by centrally managed operations or business segments that directly support another business segment’s operations are charged to the applicable business segment based on its utilization of those services, primarily measured by the volume of customer activities, number of employees or other relevant factors. These allocated expenses are reported as net shared services expense within noninterest expense. Certain activities that do not directly support the operations of the business segments or for which the business segments are not considered financially accountable in evaluating their performance are not charged to the business segments. The income or expenses associated with these corporate activities, including merger and integration charges, are reported within the Treasury and Corporate Support business segment. Income taxes are assessed to each business segment at a standard tax rate with the residual tax expense or benefit to arrive at the consolidated effective tax rate included in Treasury and Corporate Support.

Designations, assignments and allocations change from time to time as management systems are enhanced, methods of evaluating performance or product lines change or business segments are realigned to better respond to the Company’s diverse customer base. During 2025 and 2024, certain organization and methodology changes were made, including revising the Company’s business segment funds transfer-pricing methodology related to deposits and loans during the second quarter of 2024. Prior period results were recast and presented on a comparable basis.

| U.S. Bancorp |     | 73 |

Business segment results for the three months ended September 30 were as follows:

| (Dollars in Millions)                                      
 Condensed Income Statement                                 |     | Wealth, Corporate, Commercial and Institutional Banking |         | 2025 |   |         | 2024 | Consumer and Business Banking |         | 2025 |   |         | 2024 | Payment Services |        | 2025 |   |        | 2024 | Treasury and Corporate Support |         | 2025 |   |         | 2024 | Consolidated Company |         | 2025 |   |         | 2024 |
|:-----------------------------------------------------------|:----|:--------------------------------------------------------|--------:|:-----|