Company: USB-PA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000036104-25-000055
Chunk: 42

Company: US BANCORP \DE\
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 7
Chunk 42
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2025, compared with the same periods of 2024. Net interest income, on a taxable-equivalent basis, decreased $127 million (6.6 percent) in the second quarter and $270 million (7.0 percent) in the first six months of 2025, compared with the same periods of 2024, primarily due to lower noninterest-bearing deposit balances and continued rotation within the deposit portfolio. Noninterest income increased $69 million (6.1 percent) in the second quarter and $124 million (5.5 percent) in the first six months of 2025, compared with the same periods of 2024, primarily due to business growth and favorable market conditions impacting trust and investment management fees, and higher service charges due to an increase in treasury management fees. Noninterest expense decreased $28 million (2.0 percent) in the second quarter and $68 million (2.5 percent) in the first six months of 2025, compared with the same periods of 2024, primarily due to lower compensation and employee benefits expense. The provision for credit losses increased $83 million (83.0 percent) in the second quarter of 2025, compared with the second quarter of 2024, primarily due to increased reserves and charge-offs on certain assets. The provision for credit losses decreased $48 million (19.9 percent) in the first six months of 2025, compared with the first six months of 2024, primarily due to improved credit quality and portfolio mix, partially offset by increased reserves and charge-offs on certain assets. Consumer and Business Banking Consumer and Business Banking comprises consumer banking, small business banking and consumer lending. Products and services are delivered through banking offices, telephone servicing and sales, online services, direct mail, ATMs, mobile devices, distributed mortgage loan officers, and intermediary relationships including auto dealerships, mortgage banks, and strategic business partners. Consumer and Business Banking contributed $459 million of the Company’s net income in the second quarter and $867 million in the first six months of 2025, or decreases of $34 million (6.9 percent) and $91 million (9.5 percent), respectively, compared with the same periods of 2024. Net revenue decreased $77 million (3.3 percent) in the second quarter and $197 million (4.3 percent) in the first six months of 2025, compared with the same periods of 2024. Net interest income, on a taxable-equivalent basis