Company: USB-PA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000036104-25-000055
Chunk: 181

Company: US BANCORP \DE\
Filing Date: 2025-08-07
Form: 10-Q
Chunk 181
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 and $480 million (51.0 percent) in the first six months of 2025, compared with the same periods of 2024, primarily due to lower funding costs as well as the impact of fixed asset repricing. Noninterest income increased $25 million (14.0 percent) in the second quarter and $66 million (18.1 percent) in the first six months of 2025, compared with the same periods of 2024, primarily due to higher capital markets revenue, higher tax credit investment activity and the impact of other favorable items in other noninterest income, partially offset by lower mortgage banking revenue due to the gain on the sale of mortgage service rights in the prior year.

Noninterest expense decreased $1 million (0.5 percent) in the second quarter and $138 million (21.1 percent) in the first six months of 2025, compared with the same periods of 2024, primarily due to the impact of the FDIC special assessment charges in the prior year, partially offset by higher compensation and employee benefits expense and higher technology and communications expense. The decrease in noninterest expense in the first six months of 2025, compared with the first six months of 2024, was further due to the impact of merger and integration charges in the first six months of 2024, partially offset by higher marketing and business development expense. The provision for credit losses decreased $155 million in the second quarter and $6 million (12.2 percent) in the first six months of 2025, compared with the same periods of 2024, primarily due to a stable economic outlook in the second quarter of 2025 and improved credit quality.

Income taxes are assessed to each business segment at a managerial tax rate of 25.0 percent with the residual tax expense or benefit to arrive at the consolidated effective tax rate included in Treasury and Corporate Support.

| 26 |     | U.S. Bancorp |

| TABLE 11 |     | Business Segment Financial Performance |

| Three Months Ended June 30                                 
 (Dollars in Millions)                                      
 Condensed Income Statement                                 |     | Wealth, Corporate, Commercial and Institutional Banking |         | 2025 |   |         | 2024 |     |       | Percent 
 Change  | Consumer and     
 Business Banking |         | 2025 |   |         | 2024 |     |       | Percent 
 Change  | Payment Services |        | 2025 |   |        | 202