Company: USB-PA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000036104-25-000028
Chunk: 4

Company: US BANCORP \DE\
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 7
Chunk 4
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 by a reduction in prepaid card volumes from the prior year. Other noninterest income increased primarily due to higher tax credit investment activity and the impact of other favorable items.Noninterest Expense Noninterest expense was $4.2 billion in the first quarter of 2025, representing a decrease of $227 million (5.1 percent) from the first quarter of 2024. The decrease in noninterest expense reflected the impact of merger and integration charges in the prior year, along with lower compensation and employee benefits expense and lower other noninterest expense, partially offset by higher marketing and business development expense and higher technology and communications expense. Compensation and employee benefits expense decreased primarily due to cost savings from operational efficiencies, partially offset by merit increases. Other noninterest expense decreased primarily due to the impact of the FDIC special assessment in the prior year. Marketing and business development expense increased primarily due to a higher charitable foundation contribution. Technology and communications expense increased primarily due to investments in infrastructure and technology development.Income Tax Expense The provision for income taxes was $443 million (an effective rate of 20.5 percent) for the first quarter of 2025, compared with $347 million (an effective rate of 20.7 percent) for the first quarter of 2024. For further information on income taxes, refer to Note 11 of the Notes to Consolidated Financial Statements. 

 TABLE 2Noninterest Income

Three Months EndedMarch 31(Dollars in Millions)20252024PercentChangeCard revenue$398 $392 1.5 %Corporate payment products revenue189 184 2.7 Merchant processing services415 401 3.5 Trust and investment management fees680 641 6.1 Service charges315 315 — Capital markets revenue382 388 (1.5)Mortgage banking revenue173 166 4.2 Investment products fees87 77 13.0 Other197 134 47.0 Total fee revenue2,836 2,698 5.1 Securities gains (losses), net— 2 *Total noninterest income$2,836 $2,700 5.0 %

*Not meaningful

U.S. Bancorp5

 TABLE 3Noninterest Expense

Three Months EndedMarch 31(Dollars in Millions)20252024PercentChangeCompensation and employee benefits$2,637 $2,691 (2.0)%Net occupancy