Company: USB-PA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000036104-25-000028
Chunk: 55

Company: US BANCORP \DE\
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 55
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 The Company measures the allowance for credit losses using market information where available and discounting the cash flows at the original effective rate of the investment security. The allowance for credit losses is adjusted each period through earnings and can be subsequently recovered. The allowance for credit losses on the Company’s available-for-sale investment securities was immaterial at March 31, 2025 and December 31, 2024. At March 31, 2025, certain investment securities had a fair value below amortized cost. The following table shows the gross unrealized losses excluding portfolio level basis adjustments and fair value of the Company’s available-for-sale investment securities with unrealized losses, aggregated by investment category and length of time the individual investment securities have been in continuous unrealized loss positions, at March 31, 2025: Less Than 12 Months 12 Months or Greater Total (Dollars in Millions)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized LossesU.S. Treasury and agencies$6,408 $(5)$17,376 $(1,777)$23,784 $(1,782)Mortgage-backed securitiesResidential agency11,691 (131)15,511 (1,781)27,202 (1,912)Commercial     Agency— — 7,503 (1,144)7,503 (1,144)Non-agency— — 7 — 7 — Asset-backed securities1,719 (4)983 (2)2,702 (6)Obligations of state and political subdivisions1,363 (29)7,632 (1,304)8,995 (1,333)Other— — 4 — 4 — Total investment securities$21,181 $(169)$49,016 $(6,008)$70,197 $(6,177)

U.S. Bancorp35

These unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase of these available-for-sale investment securities. U.S. Treasury and agencies securities and agency mortgage-backed securities are issued, guaranteed or otherwise supported by the United States government. The Company’s obligations of state and political subdivisions are generally high grade. Accordingly, the Company does not consider these unrealized losses to be credit-related and an allowance for credit losses is not necessary. In general, the issuers of the investment securities are