Company: USB-PA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000036104-25-000028
Chunk: 2

Company: US BANCORP \DE\
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 7
Chunk 2
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Corporate Risk Profile” for further information on the provision for credit losses, net charge-offs, nonperforming assets and other factors considered by the Company in assessing the credit quality of the loan portfolio and establishing the allowance for credit losses. Statement of Income Analysis Net Interest Income Net interest income, on a taxable-equivalent basis, was $4.1 billion in the first quarter of 2025, representing an increase of $107 million (2.7 percent) compared with the first quarter of 2024. The increase was primarily due to the mix of earning assets, fixed asset repricing and modest loan growth, partially offset by deposit mix. Average earning assets for the first quarter of 2025 were $14.1 billion (2.4 percent) higher than the first quarter of 2024, reflecting increases in investment securities, loans and other earning assets, partially offset by a decrease in interest-bearing deposits with banks. The net interest margin, on a taxable-equivalent basis, in the first quarter of 2025 was 2.72 percent, compared with 2.70 percent in the first quarter of 2024. The increase in net interest margin from the first quarter of 2024 was primarily due to improved balance sheet mix, fixed asset repricing and modest loan growth, partially offset by deposit mix and higher earning assets. Refer to the “Consolidated Daily Average Balance Sheet and Related Yields and Rates” table for further information on net interest income. Average total loans in the first quarter of 2025 were $8.0 billion (2.1 percent) higher than the first quarter of 2024. The increase was primarily due to higher commercial loans, residential mortgages and credit card loans, partially offset by lower commercial real estate loans and other retail loans. The increase in average commercial loans was primarily due to growth in loans to financial institutions. The increase in residential mortgages was primarily driven by originations. The increase in average credit card loans was primarily driven by customer account growth and higher spend volume. The decrease in average commercial real estate loans was primarily due to loan workout activities and payoffs exceeding a reduced level of new originations. The decrease in average other retail loans was driven by lower automobile loans. Average investment securities in the first quarter of 2025 were $9.9 billion (6.2 percent) higher than the first quarter of 2024, primarily due to balance sheet positioning and liquidity management.Average total deposits for the first quarter of 2025 were $3.5 billion (0