Company: USB-PA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000036104-25-000028
Chunk: 137

Company: US BANCORP \DE\
Filing Date: 2025-05-06
Form: 10-Q
Chunk 137
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 up to 60 months.

The Company also makes short-term modifications, in limited circumstances, to assist borrowers experiencing temporary hardships. Short-term consumer lending modification programs include payment reductions, deferrals of up to three past due payments, and the ability to return to current status if the borrower makes required payments. The Company may also make short-term modifications to commercial lending loans, with the most common modification being an extension of the maturity date of three months or less. Such extensions generally are used when the maturity date is imminent and the borrower is experiencing some level of financial stress, but the Company believes the borrower will pay all contractual amounts owed. During January 2025, wildfires caused substantial damage and disruption to the Los Angeles area. The Company has programs available to work with impacted customers and support the community. The Company continues to monitor the potential impacts on its customers and financial statements as the situation evolves. The Company does not anticipate this impact to be material to its financial results and expects only transitory impacts to delinquency levels as impacted borrowers enter forbearance programs.

Nonperforming Assets The level of nonperforming assets represents another indicator of the Company’s risk within the

loan portfolio. Nonperforming assets include nonaccrual loans, modified loans not performing in accordance with modified terms and not accruing interest, modified loans that have not met the performance period required to return to accrual status, other real estate owned (“OREO”) and other nonperforming assets owned by the Company. Interest payments collected from assets on nonaccrual status are generally applied against the principal balance and not recorded as income. However, interest income may be recognized for interest payments received if the remaining carrying amount of the loan is believed to be collectible.

At March 31, 2025, total nonperforming assets were $1.7 billion, compared to $1.8 billion at December 31, 2024. The $105 million (5.7 percent) decrease in nonperforming assets was primarily due to lower nonperforming commercial and commercial real estate loans. Office nonperforming loans as a percent of total office loans was 10.9 percent at both March 31, 2025 and December 31, 2024. The ratio of total nonperforming assets to total loans and other real estate was 0.45 percent at March 31, 2025, compared with 0.48 percent at December 31, 2024.

OREO was $23 million at March 31, 202