Company: USB-PA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000036104-25-000028
Chunk: 84

Company: US BANCORP \DE\
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 84
---
aptions, forward commitments to buy TBAs, U.S. Treasury and SOFR futures and options on U.S. Treasury futures to economically hedge the change in the fair value of the Company’s MSRs. The Company enters into foreign currency forwards to economically hedge remeasurement gains and losses the Company recognizes on foreign currency denominated assets and liabilities. The Company also enters into interest rate swaps as economic hedges of fair value option elected deposits and long-term debt. In addition, the Company acts as a seller and buyer of interest rate, foreign 

U.S. Bancorp51

exchange and commodity contracts for its customers. The Company mitigates the market, funding and liquidity risk associated with these customer derivatives by entering into similar offsetting positions with broker-dealers, or on a portfolio basis by entering into other derivative or non-derivative financial instruments that partially or fully offset the exposure to earnings from these customer-related positions. The Company’s customer derivatives and related hedges are monitored and reviewed by the Company’s Market Risk Committee, which establishes policies for market risk management, including exposure limits for each portfolio. The Company also has derivative contracts that are created through its operations, including certain unfunded mortgage loan commitments and swap agreements related to the sale of a portion of its Class B common and preferred shares of Visa Inc. Refer to Note 14 for further information on these swap agreements. The Company uses credit derivatives to economically hedge the credit risk on its derivative positions and loan portfolios. The following table summarizes the asset and liability management derivative positions of the Company:  March 31, 2025December 31, 2024 Notional ValueFair ValueNotional ValueFair Value(Dollars in Millions)AssetsLiabilitiesAssetsLiabilitiesFair value hedgesInterest rate contractsReceive fixed/pay floating swaps$13,100 $— $— $10,600 $— $— Pay fixed/receive floating swaps28,279 — — 29,739 — — Cash flow hedgesInterest rate contractsReceive fixed/pay floating swaps28,500 — — 28,550 — — Pay fixed/receive floating swaps1,050 — — — — — Net investment hedgesForeign exchange forward contracts687 1 — 870 7 — Other economic hedgesInterest rate contractsFutures and forwardsBuy4,923 10 7 5,436 8 30 Sell2,745 1 9 2,