Core Viewpoint - AsiaRF has launched the HaLowFly USB wireless network card, enabling devices to connect to Wi-Fi HaLow networks in just 10 seconds, simplifying IoT deployments significantly [2][4][10] Product Features - The HaLowFly USB Wi-Fi dongle allows for plug-and-play connectivity without the need for driver installation or complex configurations, making it user-friendly [5][6] - It supports a wide range of operating systems including Windows, Linux, Unix, macOS, iOS, and Android, ensuring cross-platform compatibility [6][11] - The device offers kilometer-level wireless coverage, facilitating seamless audio and video streaming over long distances [6][11] Performance and Reliability - The HaLowFly is designed for harsh environments, featuring an industrial-grade radio module for ultra-low-energy, high-stability connections, and a durable housing to withstand demanding conditions [7][11] - It maintains a secure and stable link in challenging settings such as heat, humidity, and dust [7] Efficiency and Cost - Initial setup and reconnection take approximately 10 seconds, with connection settings manageable through any web browser, eliminating the need for additional software [8] - The instant-connect design reduces deployment time and operational costs compared to competing solutions that require special drivers or custom firmware [8] Pricing and Availability - The HaLowFly is officially priced at US$139, with a limited-time introductory pre-order price of US$99 [9] Strategic Vision - AsiaRF aims to accelerate the global adoption of long-range IoT technology, contributing to the development of smart cities, precision agriculture, and industrial automation [10]

[Part I — Financial Information](index=4&type=section&id=Part%20I%20%E2%80%94%20Financial%20Information) This section details the company's Q2 and H1 2025 financial performance, condition, risk profile, segment results, and financial statements [Management's Discussion and Analysis of Financial Condition and Results of Operations (Item 2)](index=4&type=section&id=Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20(Item%202)) U.S. Bancorp reported strong Q2 2025 financial performance, with net income rising 13.2% to $1.8 billion, driven by revenue growth, reduced expenses, and lower credit loss provisions [Overview](index=6&type=section&id=Overview) In Q2 2025, U.S. Bancorp's net income attributable to the company increased to $1.8 billion ($1.11 per diluted share) from $1.6 billion ($0.97 per diluted share) in Q2 2024 Q2 and H1 2025 Earnings Summary | Metric | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to U.S. Bancorp | $1.8B | $1.6B | 13.2% | $3.5B | $2.9B | 20.6% | | Diluted EPS | $1.11 | $0.97 | 14.4% | $2.14 | $1.75 | 22.3% | | Total Net Revenue | $7.0B | $6.9B | 2.0% | $14.0B | $13.6B | 2.8% | * Revenue growth in Q2 2025 was supported by a **0.7% increase in net interest income** and a **3.9% increase in noninterest income**, driven by higher trust and investment management fees and payment services revenue[17](index=17&type=chunk) * Noninterest expense **decreased by 0.8%** year-over-year in Q2 2025, primarily due to lower compensation and employee benefits expense[18](index=18&type=chunk) * The provision for credit losses was **$501 million**, **down 11.8%** from Q2 2024, reflecting the impact of loan portfolio sales and improved credit quality[19](index=19&type=chunk) [Statement of Income Analysis](index=6&type=section&id=Statement%20of%20Income%20Analysis) The income statement analysis reveals that Q2 2025 net interest income grew slightly by 0.7% to $4.1 billion, with a stable net interest margin of 2.66% * Net interest income (taxable-equivalent) for Q2 2025 was **$4.1 billion**, a **0.7% increase YoY**, driven by asset repricing and loan mix, partially offset by deposit pricing pressures[25](index=25&type=chunk) * The net interest margin was **2.66%**, slightly down from 2.67% in Q2 2024[25](index=25&type=chunk) Noninterest Income Breakdown (Q2 2025 vs Q2 2024) | Category | Q2 2025 ($M) | Q2 2024 ($M) | % Change | | :--- | :--- | :--- | :--- | | Trust and investment management fees | 703 | 649 | 8.3% | | Merchant processing services | 474 | 454 | 4.4% | | Card revenue | 442 | 428 | 3.3% | | Mortgage banking revenue | 162 | 190 | (14.7)% | | **Total noninterest income** | **2,924** | **2,815** | **3.9%** | Noninterest Expense Breakdown (Q2 2025 vs Q2 2024) | Category | Q2 2025 ($M) | Q2 2024 ($M) | % Change | | :--- | :--- | :--- | :--- | | Compensation and employee benefits | 2,600 | 2,619 | (0.7)% | | Technology and communications | 534 | 509 | 4.9% | | Other intangibles | 124 | 142 | (12.7)% | | **Total noninterest expense** | **4,181** | **4,214** | **(0.8)%** | * The provision for income taxes was **$472 million** for Q2 2025, representing an effective tax rate of **20.6%**, compared to $445 million (21.6% effective rate) in Q2 2024[36](index=36&type=chunk) [Balance Sheet Analysis](index=9&type=section&id=Balance%20Sheet%20Analysis) As of June 30, 2025, the company's balance sheet showed stability and strategic repositioning, with total loans increasing marginally by 0.1% to $380.2 billion and investment securities growing 2.3% to $168.5 billion * Total loans stood at **$380.2 billion** at June 30, 2025, a slight **0.1% increase** from December 31, 2024[37](index=37&type=chunk) * Growth was driven by a **5.7% increase in commercial loans**, while residential mortgages and other retail loans decreased by 3.7% and 5.1%, respectively, partly due to portfolio sales[38](index=38&type=chunk)[39](index=39&type=chunk) * Investment securities increased by **2.3% to $168.5 billion** from year-end 2024, driven by net purchases and a favorable change in net unrealized losses on available-for-sale securities, which decreased to **$6.0 billion**[43](index=43&type=chunk)[44](index=44&type=chunk) * Total deposits were **$518.7 billion**, nearly unchanged from December 31, 2024, with a shift in composition as noninterest-bearing and time deposits increased while money market deposit balances decreased[49](index=49&type=chunk) * Long-term debt increased by **10.4% to $64.0 billion** from year-end 2024, primarily due to **$4.7 billion of medium-term note issuances** and a **$2.0 billion increase in FHLB advances**[50](index=50&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk/Corporate Risk Profile (Item 3)](index=11&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk%2FCorporate%20Risk%20Profile%20(Item%203)) The company employs a comprehensive risk management framework overseen by the Board of Directors, structured around a "three lines of defense" model, managing credit, interest rate, market, liquidity, and capital risks effectively [Overview](index=11&type=section&id=Overview) The company's risk management is governed by a Board-approved framework that sets risk appetite boundaries, with the Executive Risk Committee overseeing execution and a "three lines of defense" model ensuring effective checks and balances * The company's most prominent risk exposures are identified as credit, interest rate, market, liquidity, operational, compliance, strategic, and reputation[53](index=53&type=chunk) * A "three lines of defense" model is used for risk management: 1) business lines manage risks, 2) the Chief Risk Officer's organization provides oversight and sets policies, and 3) internal audit provides independent assessment[55](index=55&type=chunk) [Credit Risk Management](index=12&type=section&id=Credit%20Risk%20Management) Credit risk is managed through centralized policies, diversification, and ongoing monitoring, resulting in an 8.3% decrease in nonperforming assets to $1.7 billion and a stable allowance for credit losses at $7.9 billion Nonperforming Assets | Metric | June 30, 2025 | Dec 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Nonperforming Assets | $1,680 M | $1,832 M | (8.3)% | | Nonperforming Assets to Total Loans | 0.44% | 0.48% | N/A | * Total loan net charge-offs were **$554 million** for Q2 2025, representing an annualized rate of **0.59%** of average loans outstanding, slightly up from 0.58% in Q2 2024[91](index=91&type=chunk)[92](index=92&type=chunk) * The allowance for credit losses was **$7.9 billion** at June 30, 2025, a **0.8% decrease** from year-end 2024, primarily due to loan portfolio sales and improved credit quality[104](index=104&type=chunk) * The allowance as a percentage of period-end loans was **2.07%**[105](index=105&type=chunk) Summary of Allowance for Credit Losses (ACL) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total ACL | $7,862 M | $7,925 M | | ACL as % of Period-End Loans | 2.07% | 2.09% | | ACL as % of Nonperforming Loans | 480% | 442% | [Interest Rate Risk Management](index=23&type=section&id=Interest%20Rate%20Risk%20Management) Interest rate risk is managed by the ALCO using NII sensitivity and market value of equity modeling, with the balance sheet relatively neutral to parallel rate shifts and derivatives used for hedging Sensitivity of Net Interest Income (Next 12 Months) | Rate Change | Projected Impact on NII (June 30, 2025) | | :--- | :--- | | Down 50 bps | +0.34% | | Up 50 bps | +0.06% | | Down 200 bps | -0.07% | | Up 200 bps | +0.63% | * As of June 30, 2025, the company's balance sheet is relatively **neutral to a parallel shift in interest rates**, as asset repricing aligns closely with liability repricing[122](index=122&type=chunk) * The company uses derivatives for asset and liability management to convert fixed-rate instruments to floating-rate, mitigate changes in the value of MSRs and mortgage commitments, and hedge foreign currency volatility[123](index=123&type=chunk)[129](index=129&type=chunk) [Market Risk Management](index=24&type=section&id=Market%20Risk%20Management) Market risk from customer-related trading is managed using a VaR approach, with an average one-day VaR of $3 million for H1 2025 and no actual losses exceeding VaR Market Risk Exposure (H1 2025) | Metric | Average | High | Low | Period-End | | :--- | :--- | :--- | :--- | :--- | | One-Day VaR | $3 M | $4 M | $2 M | $4 M | | One-Day Stressed VaR | $12 M | $15 M | $9 M | $14 M | * The company did not experience any actual losses for its combined Covered Positions that exceeded VaR during the six months ended June 30, 2025[131](index=131&type=chunk) [Liquidity Risk Management](index=25&type=section&id=Liquidity%20Risk%20Management) The company maintains robust liquidity through diversified funding, stress testing, and liquid assets, with total available liquidity increasing to $297.6 billion and an average Q2 2025 LCR of 108.3% Total Available Liquidity | Component | June 30, 2025 ($M) | Dec 31, 2024 ($M) | | :--- | :--- | :--- | | Cash at Federal Reserve | 48,964 | 47,434 | | Available investment securities | 59,101 | 67,910 | | Borrowing capacity (Fed & FHLB) | 189,564 | 171,226 | | **Total Available Liquidity** | **297,629** | **286,570** | * The company's average daily Liquidity Coverage Ratio (LCR) was **108.3%** for Q2 2025, exceeding the regulatory requirement[144](index=144&type=chunk) * The parent company maintains sufficient liquidity to meet its obligations for **12 months** under adverse conditions without support from subsidiaries or access to wholesale markets[142](index=142&type=chunk) [Capital Management](index=27&type=section&id=Capital%20Management) Capital is actively managed to exceed regulatory requirements, with all ratios above "well-capitalized" levels, a CET1 ratio of 10.7%, and ongoing share repurchases Regulatory Capital Ratios | Ratio | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Common equity tier 1 capital | 10.7% | 10.6% | | Tier 1 capital | 12.3% | 12.2% | | Total risk-based capital | 14.3% | 14.3% | | Leverage | 8.5% | 8.3% | * A share repurchase program of up to **$5.0 billion** was authorized in September 2024[157](index=157&type=chunk) * In Q2 2025, the company repurchased **2,692,538 shares** for approximately **$106 million**[158](index=158&type=chunk) [Business Segment Financial Review](index=28&type=section&id=Business%20Segment%20Financial%20Review) Q2 2025 segment performance showed Payment Services growing 12.5%, while Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking declined due to NII pressure Q2 2025 Net Income by Business Segment (vs Q2 2024) | Business Segment | Q2 2025 Net Income ($M) | % Change YoY | | :--- | :--- | :--- | | Wealth, Corporate, Commercial & Institutional Banking | 1,098 | (7.2)% | | Consumer and Business Banking | 459 | (6.9)% | | Payment Services | 325 | 12.5% | | Treasury and Corporate Support | (67) | 81.5% | [Financial Statements (Item 1)](index=34&type=section&id=Financial%20Statements%20(Item%201)) This section presents the unaudited consolidated financial statements for the six months ended June 30, 2025, including balance sheets, income statements, and detailed explanatory notes [Consolidated Financial Statements](index=34&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show total assets of $686.4 billion, total liabilities of $624.5 billion, and net income of $1.8 billion for Q2 2025 Consolidated Balance Sheet Highlights (June 30, 2025) | Account | Amount ($B) | | :--- | :--- | | Total Assets | 686.4 | | Net Loans | 372.7 | | Total Deposits | 518.7 | | Total Liabilities | 624.5 | | Total Shareholders' Equity | 61.4 | Consolidated Income Statement Highlights (Q2 2025) | Account | Amount ($B) | | :--- | :--- | | Net Interest Income | 4.05 | | Provision for Credit Losses | 0.50 | | Total Noninterest Income | 2.92 | | Total Noninterest Expense | 4.18 | | **Net Income** | **1.82** | [Notes to Consolidated Financial Statements](index=39&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide critical details on investment securities, loan portfolio, allowance for credit losses, mortgage servicing rights, derivatives, fair value measurements, and contingent liabilities * **Note 3:** Total investment securities were **$168.5 billion** at June 30, 2025[203](index=203&type=chunk) * The portfolio had net unrealized losses of **$6.0 billion** on available-for-sale securities, primarily due to changes in interest rates[43](index=43&type=chunk)[44](index=44&type=chunk) * **Note 4:** Total loans were **$380.2 billion**[214](index=214&type=chunk) * The allowance for credit losses was **$7.9 billion**, or **2.07%** of total loans[223](index=223&type=chunk) * The allowance decreased slightly from year-end due to loan sales and improved credit quality[223](index=223&type=chunk) * **Note 6:** The fair value of Mortgage Servicing Rights (MSRs) was **$3.3 billion** at quarter-end[258](index=258&type=chunk) * The company uses derivatives to economically hedge changes in the fair value of MSRs[259](index=259&type=chunk) * **Note 15:** The company has contingent liabilities related to its role as a trustee for residential mortgage-backed securities trusts and merchant processing services[343](index=343&type=chunk)[344](index=344&type=chunk) * It has established reserves for matters where losses are probable and estimable[349](index=349&type=chunk) [Part II — Other Information](index=81&type=section&id=Part%20II%20%E2%80%94%20Other%20Information) This section covers legal proceedings, risk factors, unregistered equity sales, and exhibits filed with the Form 10-Q [Legal Proceedings (Item 1)](index=81&type=section&id=Legal%20Proceedings%20(Item%201)) This section refers to Note 15 of the financial statements for a detailed discussion of ongoing litigation and regulatory matters, with no material adverse effect expected * The company is subject to various legal and regulatory matters, including litigation related to its role as a trustee for residential mortgage-backed securities[348](index=348&type=chunk)[349](index=349&type=chunk) * For details, the report refers to Note 15[372](index=372&type=chunk) [Risk Factors (Item 1A)](index=81&type=section&id=Risk%20Factors%20(Item%201A)) The report directs readers to the company's 2024 Form 10-K for a comprehensive discussion of potential risks, noting no material changes to previously disclosed factors * There have been no material changes to the risk factors previously disclosed in the company's 2024 Form 10-K[373](index=373&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds (Item 2)](index=81&type=section&id=Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds%20(Item%202)) Information regarding the company's repurchase of its common stock during Q2 2025 is incorporated by reference from the "Capital Management" section of the MD&A * Details on share repurchases during Q2 2025 are provided in the "Capital Management" section on page 28 of the report[158](index=158&type=chunk)[374](index=374&type=chunk) [Exhibits (Item 6)](index=81&type=section&id=Exhibits%20(Item%206)) This section lists all exhibits filed with the Form 10-Q, including officer certifications and financial statements formatted in Inline XBRL * The exhibits filed with this report include officer certifications (31.1, 31.2, 32) and financial data in Inline XBRL format (101, 104)[376](index=376&type=chunk)

Market Performance - The US stock market saw significant gains on July 23, with the Dow Jones Industrial Average rising by 507.85 points, or 1.14%, closing at 45010.29 points. The Nasdaq Composite increased by 127.33 points, or 0.61%, closing at 21020.02 points, marking its first close above the 21000-point threshold. The S&P 500 index rose by 49.29 points, or 0.78%, closing at 6358.91 points [1][3][4]. Trade Agreements - President Trump announced a trade agreement between the US and Japan, which has heightened market expectations for further trade agreements before the August 1 tariff deadline. The agreement includes a reduction of the reciprocal tariff rate from 25% to 15% and Japan's commitment to invest $550 billion in the US [2][6][7]. Sector Performance - In the S&P 500, nine out of eleven sectors experienced gains, with the healthcare and industrial sectors leading with increases of 2.03% and 1.75%, respectively. The utilities and consumer staples sectors saw declines of 0.79% and 0.07% [8]. - Major technology stocks mostly rose, with AMD increasing over 3%, and other companies like NVIDIA, Boeing, and TSMC rising over 2%. Financial stocks also saw gains, with Mizuho Financial up over 6% and UBS Group up over 3% [8]. Chinese Stocks - The Nasdaq Golden Dragon China Index rose by 0.75%, with notable increases in stocks such as iQIYI, which rose over 4%, and Tiger Brokers, which increased over 3%. However, some stocks like NIO and Li Auto saw declines of over 1% [9].

Core Viewpoint - Income investors prioritize generating consistent cash flow from investments, with dividends being a key focus for returns [2][5]. Company Overview - U.S. Bancorp (USB) is headquartered in Minneapolis and has experienced a price change of -3.49% this year [3]. - The company currently pays a dividend of $0.50 per share, resulting in a dividend yield of 4.33%, which is significantly higher than the Banks - Major Regional industry's yield of 3.35% and the S&P 500's yield of 1.48% [3]. Dividend Growth - U.S. Bancorp's annualized dividend of $2.00 has increased by 1% from the previous year, with an average annual increase of 4.01% over the last five years [4]. - The company's current payout ratio is 47%, indicating that it pays out 47% of its trailing 12-month earnings per share as dividends [4]. Earnings Growth Expectations - For the fiscal year, U.S. Bancorp anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $4.34 per share, reflecting a year-over-year growth rate of 9.05% [5]. Investment Considerations - U.S. Bancorp is viewed as a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6].

Core Insights - U.S. Bancorp reported better-than-expected earnings for its second fiscal quarter driven by strong loan performance, reduced credit provisions, and high interest rates boosting net interest income [1] Financial Performance - The bank's earnings exceeded analyst expectations due to robust loan performance [1] - Falling credit provisions contributed positively to the earnings report [1] - High interest rates have supported an increase in net interest income for the bank [1]

Core Viewpoint - The signing of the GENIUS Act by President Trump is paving the way for the issuance and regulation of stablecoins in the U.S., which may disrupt traditional banking systems in the next 2 to 3 years [1][2]. Legislative Developments - The GENIUS Act establishes a preliminary framework for stablecoin issuance and regulation, while the CLARITY Act aims to clarify the jurisdiction of the SEC and CFTC over the crypto market [1]. - These legislative advancements signify a shift in focus from policy debates to the actual construction of infrastructure in the digital asset market [2]. Market Growth Projections - The stablecoin market is expected to see moderate growth of approximately $25 billion to $75 billion in the short term, which will likely increase demand for U.S. Treasury securities, particularly short-term bills [2]. Banking Sector Response - U.S. banks are preparing for the stablecoin era, with management expressing readiness to offer stablecoin solutions, although there are concerns regarding specific use cases, especially in domestic payment scenarios [3]. - Major banks like JPMorgan and Citigroup are exploring stablecoin capabilities, with JPMorgan launching its deposit token (JPMD) and Citigroup investing in digital asset services [6][7]. Cross-Border Payment Opportunities - Despite skepticism about domestic applications, bank executives see viable use cases for stablecoins in cross-border payments, with some banks viewing this as a "greenfield" market [4]. Short-Term Impact on Domestic Payments - Most banks anticipate minimal short-term impact on their core domestic payment businesses from stablecoins, although competition in cash management services may intensify [5]. Bank Comments on Stablecoins - JPMorgan is actively entering the stablecoin and digital asset space, while Bank of America acknowledges small cross-border payments as a realistic application [6]. - Citigroup is focusing on tokenized services, despite high transaction costs for converting between fiat and stablecoins [6][7]. Digital Asset Applications - Banks are exploring four main application scenarios for digital assets: reserve management and custody services for stablecoins, transaction services, issuing their own stablecoins, and tokenized deposits [7][8]. Future Outlook - Various banks, including PNC and M&T, are developing digital asset services and assessing the feasibility of stablecoins as payment mechanisms, indicating a growing interest in the sector [9].

Core Insights - U.S. Bancorp reported Q2 2025 GAAP earnings per share of $1.11, exceeding analyst expectations of $1.07, while revenue was slightly below expectations at $7.004 billion compared to the forecast of $7.05 billion [1][2] Financial Performance - Net income (GAAP) increased to $1.815 billion, a rise of 13.2% year-over-year [5] - Fee income now constitutes approximately 42% of total revenue, driven by growth in merchant processing services (up 4.4%), card revenue (up 3.3%), and trust and investment management fees (up 8.3%) [5] - Net interest income rose by 0.7% to $4.08 billion, while the net interest margin decreased to 2.66% due to increased competition for deposits [6] - Noninterest expenses were reduced by 0.8% year-over-year, reflecting effective cost control measures [6] Business Overview - U.S. Bancorp operates across various financial services, including consumer and business banking, wealth management, payment services, and corporate banking [3] - The company is focusing on operational efficiency, digital banking investments, and expanding payment and wealth management services to adapt to changing customer expectations and technological advancements [4] Segment Performance - The Payment Services segment reported a significant increase in net income by 12.5%, handling $576 billion in annual global transaction volume [9][10] - The Consumer & Business Banking segment experienced a 6.9% decrease in net income (GAAP) but showed sequential improvement [10] - Business banking and corporate clients saw a profit decline of 7.2% compared to Q2 2024 [10] Capital Management - The Common Equity Tier 1 (CET1) capital ratio remained strong at 10.7%, indicating robust core capital strength [11] - The company declared a quarterly dividend of $0.50 per share, up from $0.49 in Q2 2024, while maintaining a disciplined approach to capital management [11][15] Future Outlook - Management projects 3% to 5% adjusted net revenue growth for FY2025, with a target for net interest margin to exceed 3% by 2026 or 2027 [13] - Key areas to monitor include the trajectory of deposit and loan balances, the success of fee-generating businesses, and the impact of technology investments [14]

Group 1 - PNC Financial Services and U.S. Bancorp are recognized as top regional banks due to their national reach and stability [1] - Both banks are considered good options for dividend investors looking to diversify their portfolios [1] - Joseph Jones, a professor with over fifteen years of market study experience, emphasizes the importance of portfolio construction from a dividend growth perspective [1]

U.S. Bancorp USB posted upbeat earnings for the second quarter but fell short of revenue expectations.The company reported second-quarter adjusted earnings per share of $1.11, beating the analyst consensus estimate of $1.07.Quarterly sales of $7.004 billion (+2% year over year) missed the Street view of $7.052 billion. On a GAAP basis, U.S. Bancorp registered revenues of $6.975 billion, missing the analyst consensus estimate of $7.052 billion."Year-over-year top-line revenue growth, coupled with our continu ...

Core Insights - U.S. Bancorp's second-quarter 2025 earnings per share of $1.11 exceeded the Zacks Consensus Estimate of $1.07, reflecting a 13.3% increase from the prior-year quarter, driven by lower expenses and higher non-interest income [1][8] - Total revenues for the quarter were $7 billion, a 2% year-over-year increase, but fell short of the Zacks Consensus Estimate by 0.8% [2][8] - Concerns arose from a decline in both deposits and loans, leading to a 4% drop in shares during pre-market trading [1][8] Financial Performance - Net income attributable to U.S. Bancorp was $1.82 billion, marking a 13.2% increase from the previous year [2] - Tax-equivalent net interest income (NII) reached $4.08 billion, showing a slight increase year-over-year, primarily due to fixed asset repricing and a favorable loan mix [3] - Non-interest income rose by 3.9% year-over-year to $2.92 billion, with growth in most components except for corporate payment products and mortgage banking revenues [4] Expense Management - Non-interest expenses decreased marginally to $4.18 billion, attributed to reductions in most components, while the efficiency ratio improved to 59.2% from 61% in the prior year, indicating enhanced profitability [5] - Adjusted non-interest expenses also saw a slight decline compared to the previous year [5] Loan and Deposit Trends - Average total loans decreased by 0.1% to $378.5 billion, while average total deposits fell by 0.7% to $502.9 billion [6] Credit Quality - The total allowance for credit losses was $7.86 billion, down approximately 1% year-over-year, with non-performing assets decreasing by 9.3% to $1.68 billion [7] - Net charge-offs increased by 3% to $554 million, while the provision for credit losses was $501 million, down 11.8% from the prior year [7] Capital Ratios - The Tier 1 capital ratio improved to 12.3% from 11.9% year-over-year, and the Common Equity Tier 1 capital ratio rose to 10.7% from 10.2% [9] - The tangible common equity to tangible assets ratio increased to 6.1% from 5.4% in the previous year [9] Future Outlook - U.S. Bancorp's solid business model and diverse revenue streams are expected to support its financial performance in the future, with an improving NII being a positive indicator [10]