Company: USB-PA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000036104-25-000064
Chunk: 104

Company: US BANCORP \DE\
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 104
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 amortized cost of the closed portfolios used in these hedging relationships was $17.5 billion, of which $11.6 billion was designated as hedged. At December 31, 2024, the cumulative amount of basis adjustments associated with these hedging relationships was $13 million.

60U.S. Bancorp

The table below shows the gains (losses) recognized in earnings for other economic hedges and the customer-related positions:  Three Months EndedSeptember 30Nine Months EndedSeptember 30(Dollars in Millions)Location of Gains (Losses) Recognized in Earnings2025202420252024Asset and Liability Management Positions Other economic hedges Interest rate contracts Futures and forwardsMortgage banking revenue$18 $2 $43 $(12)Purchased and written optionsMortgage banking revenue43 64 111 112 SwapsMortgage banking revenue/Interest expense12 107 81 30 Foreign exchange forward contractsOther noninterest income13 (6)(4)2 Equity contractsCompensation expense20 (2)28 (4)Credit contractsCapital markets revenue1 (5)6 (7)OtherOther noninterest income(7)(1)(89)(70)Customer-Related Positions     Interest rate contracts     SwapsCapital markets revenue61 (55)143 165 Purchased and written optionsCapital markets revenue(5)109 9 41 FuturesCapital markets revenue1 — 3 — Foreign exchange rate contracts     Forwards, spots and swapsCapital markets revenue69 70 183 126 Purchased and written optionsCapital markets revenue— — 1 — Commodity contracts     SwapsCapital markets revenue(30)(2)(26)(1)Purchased and written optionsCapital markets revenue1 1 15 5 FuturesCapital markets revenue35 4 39 10 Credit contractsCapital markets revenue(4)(3)(10)(3)Derivatives are subject to credit risk associated with counterparties to the derivative contracts. The Company measures that credit risk using a credit valuation adjustment and includes it within the fair value of the derivative. The Company manages counterparty credit risk through diversification of its derivative positions among various counterparties, by entering into derivative positions that are centrally cleared through clearinghouses, by entering into master netting arrangements and, where possible, by requiring collateral arrangements.