Company: USB-PA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000036104-25-000028
Chunk: 24

Company: US BANCORP \DE\
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 7
Chunk 24
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 percent at March 31, 2025. In addition to these broad economic factors, the Company considered various factors for determining its expected loss estimates, including customer specific information impacting changes in risk ratings, projected delinquencies and the impact of economic deterioration on selected borrowers’ liquidity and ability to repay.The ratio of the allowance for credit losses to period-end loans was 2.07 percent at March 31, 2025, compared with 2.09 percent at December 31, 2024. The ratio of the allowance for credit losses to nonperforming loans was 470 percent at March 31, 2025, compared with 442 percent at December 31, 2024. The ratio of the allowance for credit losses to annualized loan net charge-offs was 357 percent at March 31, 2025, compared with 368 percent of full year 2024 net charge-offs at December 31, 2024. The allowance for credit losses related to commercial lending segment loans decreased $39 million during the first three months of 2025, reflecting improved credit quality and portfolio mix, partially offset by commercial loan growth and increased economic uncertainty. The allowance for credit losses related to consumer lending segment loans increased $29 million during the first three months of 2025, due to the impacts of economic uncertainty. Economic conditions considered in estimating the allowance for credit losses at March 31, 2025 included changes in projected gross domestic product and unemployment levels. These factors were evaluated through a combination of quantitative calculations using multiple economic scenarios and additional qualitative assessments that considered the degree of economic uncertainty in the current environment. The projected unemployment rates for 2025 considered in the estimate ranged from 3.2 percent to 8.4 percent. 

16U.S. Bancorp

The following table summarizes the baseline forecast for key economic variables the Company used in its estimate of the allowance for credit losses at March 31, 2025 and December 31, 2024: 

March 31,2025December 31,2024United States unemployment rate for the three months ending(a)March 31, 20254.2 %4.3 %December 31, 20254.4 4.3 March 31, 20264.3 4.3 United States real gross domestic product for the three months ending(b)March 31, 20252.6 %2.2 %December 31, 20251.6 1.