Company: USB-PA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000036104-25-000064
Chunk: 174

Company: US BANCORP \DE\
Filing Date: 2025-11-05
Form: 10-Q
Chunk 174
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 senior management in the Company’s corporate functions. Valuation of positions in the corporate bond trading, loan trading, asset-backed securities and municipal securities businesses are based on trader marks. These trader marks are evaluated against third-party prices, with significant variances approved by senior management in the Company’s corporate functions. The Company also measures the market risk of its hedging activities related to residential MLHFS and MSRs using the Historical Simulation method. The VaRs are measured at the ninety-ninth percentile and employ factors pertinent to the market risks inherent in the valuation of the assets and hedges. A one-year look-back period is used to obtain past market data for the models. The average, high and low VaR amounts for the residential MLHFS and related hedges and the MSRs and related hedges were as follows:

| Nine Months Ended September 30                              
 (Dollars in Millions)                                       
 Residential Mortgage Loans Held For Sale and Related Hedges |     |   |   | 2025 |   |   | 2024 |
|:------------------------------------------------------------|:----|:--|--:|:-----|:--|--:|:-----|
| Average                                                     |     | $ | 1 |      | $ | 1 |      |
| High                                                        |     |   | 2 |      |   | 3 |      |
| Low                                                         |     |   | — |      |   | 1 |      |
| Mortgage Servicing Rights and Related Hedges                |     |   |   |      |   |   |      |
| Average                                                     |     | $ | 2 |      | $ | 2 |      |
| High                                                        |     |   | 5 |      |   | 3 |      |
| Low                                                         |     |   | 1 |      |   | 1 |      |

Liquidity Risk Management The Company’s liquidity risk management process is designed to identify, measure, and manage the Company’s funding and liquidity risk to meet its daily funding needs and to address expected and unexpected changes in its funding requirements. The Company engages in various activities to manage its liquidity risk. These activities include diversifying its funding sources, stress testing, and holding readily-marketable assets which can be used as a source of liquidity if needed. In addition, the Company’s profitable operations, sound credit quality and strong credit ratings and capital position have enabled it to develop a large and reliable base of core deposit funding within its market areas and in domestic and global capital markets.