Company: USB-PA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000036104-25-000064
Chunk: 186

Company: US BANCORP \DE\
Filing Date: 2025-11-05
Form: 10-Q
Chunk 186
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, and

• Return on tangible common equity.

These capital measures are viewed by management as useful additional methods of evaluating the Company’s utilization of its capital held and the level of capital available to withstand unexpected negative market or economic conditions. Additionally, presentation of these measures allows investors, analysts and banking regulators to assess the Company’s capital position and use of capital relative to other financial services companies. These capital measures are not defined in generally accepted accounting principles (“GAAP”) or in banking regulations or were not effective for certain periods. In addition, certain capital measures related to prior periods are presented on the same basis as those in the current period. The effective capital ratios defined by banking

regulations for these periods were subject to certain transitional provisions for the implementation of accounting guidance related to impairment of financial instruments based on the CECL methodology. As a result, these capital measures disclosed by the Company may be considered non-GAAP financial measures. Management believes this information helps investors assess trends in the Company’s capital utilization and adequacy.

The Company also discloses net interest income and related ratios and analysis on a taxable-equivalent basis, which may also be considered non-GAAP financial measures. The Company believes this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net interest income arising from taxable and tax-exempt sources. In addition, certain performance measures utilize net interest income on a taxable-equivalent basis, including the efficiency ratio and net interest margin.

There may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider the consolidated financial statements and other financial information contained in this report in their entirety, and not to rely on any single financial measure.

The following tables show the Company’s calculation of these non-GAAP financial measures:

| (Dollars in Millions)                                                                                                                                   |     |   |         | September 30, 
 2025          |   |         | December 31, 
 2024         |
|:--------------------------------------------------------------------------------------------------------------------------------------------------------|:----|:--|--------:|:--------------|:--|--------:|:-------------|
| Total equity                                                                                                                                            |     | $ |  63,798 |               | $ |  59,040 |              |
| Preferred stock                                                                                                                                         |     |   |  -6,808 |               |   |  -6,808 |              |
| Noncontrolling interests                                                                                                                                |     |   |    -458 |               |   |    -462 |              |
| Common equity