Company: USB-PA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000036104-25-000055
Chunk: 204

Company: US BANCORP \DE\
Filing Date: 2025-08-07
Form: 10-Q
Chunk 204
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 less than $ 1million to $ 186million at June 30, 2025, compared with less than $ 1million to $ 79million at December 31, 2024.

The Company is required to consolidate VIEs in which it has concluded it has a controlling financial interest.The Company sponsors entities to which it transfers its interests in tax-advantaged investments to third parties. At June 30, 2025, approximately $ 5.9billion of the Company’s assets and $ 3.7billion of its liabilities included on the Consolidated Balance Sheet were related to community development and tax-advantaged investment VIEs which the Company has consolidated, primarily related to these transfers. These amounts compared to $ 6.4billion and $ 4.2billion, respectively, at December 31, 2024. The majority of the assets of these consolidated VIEs are reported in other assets, and the liabilities are reported in long-term debt and other liabilities. The assets of a particular VIE are the primary source of funds to settle its obligations. The creditors of the VIEs do not have recourse to the general credit of the Company. The Company’s exposure to the consolidated VIEs is generally limited to the carrying value of its variable interests plus any related tax credits previously recognized or transferred to others with a guarantee.

| NOTE 6 |     | Mortgage Servicing Rights |

The Company capitalizes MSRs as separate assets when loans are sold and servicing is retained. MSRs may also be purchased from others. The Company carries MSRs at fair value, with changes in the fair value recorded in earnings during the period in which they occur. The Company serviced $ 220.8billion of residential mortgage loans for others at June 30, 2025, and $ 216.6billion at December 31, 2024, including subserviced mortgages with no corresponding MSR asset. Included in mortgage banking revenue are the MSR fair value changes arising from market rate and model assumption changes, including a gain on the sale of mortgage servicing rights in the second quarter of 2024, net of the value change in derivatives used to economically hedge MSRs. These changes resulted in net losses of $ 4million and net gains of $ 24million for the three months ended June 30, 2025 and 2024, respectively, and net losses of $ 2million and net gains of $ 21million for the six months