Company: USB-PA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000036104-25-000028
Chunk: 134

Company: US BANCORP \DE\
Filing Date: 2025-05-06
Form: 10-Q
Chunk 134
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ensurate with the differing risk profiles.

Residential mortgage originations are generally limited to prime borrowers and are performed through the Company’s branches, loan production offices, mobile and online services, and a wholesale network of originators. The Company may retain residential mortgage loans it originates on its balance sheet or sell the loans into the secondary market while retaining the servicing rights and customer relationships. Utilizing the secondary markets enables the Company to effectively reduce its credit and other asset/liability risks. For residential mortgages that are retained in the Company’s portfolio and for home equity and second mortgages, credit risk is managed by adherence to LTV and borrower credit criteria during the underwriting process.

The Company estimates updated LTV information on its outstanding residential mortgages quarterly, based on a method that combines automated valuation model updates and relevant home price indices. LTV is the ratio of the loan’s outstanding principal balance to the current estimate of property value. For home equity and second mortgages, combined loan-to-value (“CLTV”) is the combination of the first mortgage original principal balance and the second lien

| U.S. Bancorp |     | 9 |

outstanding principal balance, relative to the current estimate of property value. Certain loans do not have an LTV or CLTV, primarily due to lack of availability of relevant automated valuation model and/or home price indices values, or lack of necessary valuation data on acquired loans. The following tables provide summary information of residential mortgages and home equity and second mortgages by LTV at March 31, 2025:

| Residential Mortgages (Dollars in Millions) 
 Loan-to-Value                               |     |   |        | Interest Only |   |         | Amortizing |   |         | Total |     |       | Percent of Total |
|:--------------------------------------------|:----|:--|-------:|:--------------|:--|--------:|:-----------|:--|--------:|:------|:----|------:|:-----------------|
| Less than or equal to 80%                   |     | $ | 13,721 |               | $ |  90,870 |            | $ | 104,591 |       |     |  88.0 | %                |
| Over 80% through 90%                        |     |   |    291 |               |   |   5,466 |            |   |   5,757 |       |     |   4.8 |                  |
| Over 90% through 100%