Company: USB-PA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000036104-25-000028
Chunk: 126

Company: US BANCORP \DE\
Filing Date: 2025-05-06
Form: 10-Q
Chunk 126
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 such as ongoing asset/liability management activities, assessment of product profitability, credit risk, liquidity needs, and capital implications. If the Company’s intent or ability to hold an existing portfolio loan changes, it is transferred to loans held for sale.

Loans Held for Sale Loans held for sale, consisting primarily of residential mortgages to be sold in the secondary market, were $1.7 billion at March 31, 2025, compared with $2.6 billion at December 31, 2024. The decrease in loans held for sale was principally due to a lower level of mortgage loan closings

in the first quarter of 2025, compared with the fourth quarter of 2024. Almost all of the residential mortgage loans the Company originates or purchases for sale follow guidelines that allow the loans to be sold into existing, highly liquid secondary markets, in particular in government agency transactions and to government sponsored enterprises (“GSEs”).

Investment Securities Investment securities totaled $164.8 billion at March 31, 2025, compared with $164.6 billion at December 31, 2024. The $156 million (0.1 percent) increase was primarily due to a $508 million favorable change in net unrealized gains (losses) on available-for-sale investment securities, partially offset by net investment securities sales driven by balance sheet positioning and liquidity management.

The Company’s available-for-sale investment securities are carried at fair value with changes in fair value reflected in other comprehensive income (loss) unless a portion of a security’s unrealized loss is related to credit and an allowance for credit losses is necessary. At March 31, 2025, the Company’s net unrealized losses on available-for-sale investment securities were $6.3 billion ($4.7 billion net-of-tax), compared with net unrealized losses of $6.8 billion ($5.1 billion net-of-tax) at December 31, 2024. The favorable change in net unrealized gains (losses) was primarily due to increases in the fair value of U.S. treasury and mortgage-backed securities as a result of changes in interest rates. Gross unrealized losses on available-for-sale investment securities totaled $6.4 billion at March 31, 2025, compared with $6.9 billion at December 31, 2024. When evaluating credit losses, the Company considers various factors such as the nature of the investment security, the credit ratings or financial condition of the issuer, the extent of the unrealized loss, expected