U.S. Bancorp(USB) - 2025 Q3 - Quarterly Results

Consolidated Financial Schedules Quarterly Consolidated Statement of Income Net income attributable to U.S. Bancorp increased to $2,001 million in Q3 2025, driven by growth in net interest and noninterest income, with an improved efficiency ratio of 57.2% Quarterly Consolidated Statement of Income (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income attributable to U.S. Bancorp | $2,001 | $1,815 | $1,709 | $1,663 | $1,714 | | Diluted earnings per common share | $1.22 | $1.11 | $1.03 | $1.01 | $1.03 | | Net interest income | $4,222 | $4,051 | $4,092 | $4,146 | $4,135 | | Total noninterest income | $3,078 | $2,924 | $2,836 | $2,833 | $2,698 | | Total noninterest expense | $4,197 | $4,181 | $4,232 | $4,311 | $4,204 | | Efficiency ratio | 57.2% | 59.2% | 60.8% | 61.5% | 60.2% | - Net income attributable to U.S. Bancorp increased by $186 million (10.2%) QoQ and $287 million (16.7%) YoY[2] - Diluted EPS increased by $0.11 (9.9%) QoQ and $0.19 (18.4%) YoY[2] Consolidated Ending Balance Sheet Total assets reached $695,357 million as of September 30, 2025, driven by growth in loans and cash, with notable increases in deposits and shareholders' equity Consolidated Ending Balance Sheet (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total assets | $695,357 | $686,370 | $676,489 | $678,318 | $686,469 | | Net loans | $374,960 | $372,706 | $374,235 | $372,249 | $366,604 | | Total deposits | $526,149 | $518,717 | $512,525 | $518,309 | $521,131 | | Total U.S. Bancorp shareholders' equity | $63,340 | $61,438 | $60,096 | $58,578 | $58,859 | - Total assets increased by $8,987 million (1.3%) QoQ and $8,888 million (1.3%) YoY[3] - Net loans increased by $2,254 million (0.6%) QoQ and $8,356 million (2.3%) YoY[3] Consolidated Quarterly Average Balance Sheet Average total assets and loans increased in Q3 2025 compared to prior periods, with deposits also rising QoQ and shareholders' equity growing Consolidated Quarterly Average Balance Sheet (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total assets | $679,605 | $673,341 | $669,393 | $671,907 | $664,640 | | Total loans | $379,152 | $378,529 | $379,028 | $375,655 | $374,070 | | Total deposits | $511,782 | $502,890 | $506,534 | $512,313 | $508,757 | | Total U.S. Bancorp shareholders' equity | $62,643 | $60,899 | $59,611 | $58,812 | $58,283 | - Average total assets increased by $6,264 million (0.9%) QoQ and $14,965 million (2.3%) YoY[5] - Average total loans increased by $623 million (0.2%) QoQ and $5,082 million (1.4%) YoY[5] Consolidated Daily Average Balance Sheet and Related Yields and Rates Three Months Ended September 30, 2025 vs. 2024 Net interest income (taxable-equivalent) increased by $85 million (2.0%) YoY to $4,251 million, with net interest margin slightly improving to 2.75% Three Months Ended September 30, 2025 vs. 2024 (in millions) | Metric | Sep 30, 2025 | Sep 30, 2024 | % Change Average Balances | | :---------------------------------- | :----------- | :----------- | :------------------------ | | Net interest income (taxable-equivalent) | $4,251 | $4,166 | 2.0% | | Net interest margin (taxable-equivalent) | 2.75% | 2.74% | 0.01 pp | | Total earning assets (average) | $617,517 | $607,180 | 1.7% | | Total loans (average) | $379,152 | $374,070 | 1.4% | | Yield on total loans | 5.97% | 6.25% | -0.28 pp | | Total interest-bearing deposits (average) | $431,892 | $427,818 | 1.0% | | Rate on total interest-bearing deposits | 2.43% | 2.79% | -0.36 pp | - Average balances for investment securities increased by 3.9% YoY, while loans held for sale decreased by 18.3%[7] - Savings accounts saw a significant 70.0% increase in average balances YoY, with their rate increasing from 0.30% to 1.83%[7] Three Months Ended September 30, 2025 vs. June 30, 2025 Net interest income (taxable-equivalent) increased by $171 million (4.2%) QoQ to $4,251 million, with net interest margin improving to 2.75% Three Months Ended September 30, 2025 vs. June 30, 2025 (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | % Change Average Balances | | :---------------------------------- | :----------- | :----------- | :------------------------ | | Net interest income (taxable-equivalent) | $4,251 | $4,080 | 4.2% | | Net interest margin (taxable-equivalent) | 2.75% | 2.66% | 0.09 pp | | Total earning assets (average) | $617,517 | $613,342 | 0.7% | | Total loans (average) | $379,152 | $378,529 | 0.2% | | Yield on total loans | 5.97% | 5.89% | 0.08 pp | | Total interest-bearing deposits (average) | $431,892 | $423,773 | 1.9% | | Rate on total interest-bearing deposits | 2.43% | 2.41% | 0.02 pp | - Average balances for loans held for sale decreased significantly by 53.5% QoQ[12] - Short-term borrowings decreased by 31.1% QoQ, while long-term debt increased by 1.6%[12] Nine Months Ended September 30, 2025 vs. 2024 Net interest income (taxable-equivalent) increased by $220 million (1.8%) YoY to $12,453 million, with net interest margin improving to 2.71% Nine Months Ended September 30, 2025 vs. 2024 (in millions) | Metric | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | % Change Average Balances | | :---------------------------------- | :-------------------------- | :-------------------------- | :------------------------ | | Net interest income (taxable-equivalent) | $12,453 | $12,233 | 1.8% | | Net interest margin (taxable-equivalent) | 2.71% | 2.70% | 0.01 pp | | Total earning assets (average) | $613,723 | $604,080 | 1.6% | | Total loans (average) | $378,903 | $373,278 | 1.5% | | Yield on total loans | 5.92% | 6.21% | -0.29 pp | | Total interest-bearing deposits (average) | $427,519 | $425,536 | 0.5% | | Rate on total interest-bearing deposits | 2.41% | 2.80% | -0.39 pp | - Average balances for loans held for sale increased by 24.9% YoY, while interest-bearing deposits with banks decreased by 13.8%[16] - Savings accounts showed a substantial 45.9% increase in average balances YoY, with their rate increasing from 0.27% to 1.67%[16] Loan Portfolio The total loan portfolio reached $382,517 million as of September 30, 2025, with commercial loans increasing their share as the largest segment Loan Portfolio (in millions) | Loan Category | Sep 30, 2025 (Amount) | Sep 30, 2025 (Percent of Total) | Sep 30, 2024 (Amount) | Sep 30, 2024 (Percent of Total) | | :---------------------- | :-------------------- | :------------------------------ | :-------------------- | :------------------------------ | | Total loans | $382,517 | 100.0% | $374,164 | 100.0% | | Commercial | $148,414 | 38.8% | $133,638 | 35.7% | | Commercial real estate | $48,244 | 12.6% | $50,619 | 13.5% | | Residential mortgages | $115,046 | 30.1% | $118,034 | 31.5% | | Credit card | $30,594 | 8.0% | $29,037 | 7.8% | | Other retail | $40,219 | 10.5% | $42,836 | 11.5% | - Commercial loans increased by $14,776 million (11.1%) YoY, growing from 35.7% to 38.8% of the total portfolio[19] - Automobile loans within 'Other retail' significantly decreased from $7,308 million in Q3 2024 to $3,868 million in Q3 2025[19] Supplemental Business Segment Schedules Wealth, Corporate, Commercial and Institutional Banking Net income for the segment was $1,162 million in Q3 2025, with noninterest income growth from capital markets offsetting a slight YoY decline in net interest income Income Statement Net income was $1,162 million in Q3 2025, increasing QoQ but decreasing YoY, with noninterest income growth driven by capital markets revenue Income Statement (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income attributable to U.S. Bancorp | $1,162 | $1,087 | $1,184 | $1,286 | $1,194 | | Net Interest Income (taxable-equivalent) | $1,823 | $1,783 | $1,757 | $1,935 | $1,889 | | Total noninterest income | $1,256 | $1,198 | $1,166 | $1,151 | $1,145 | | Provision for Credit Losses | $197 | $183 | $10 | $50 | $94 | - Capital markets revenue increased to $219 million in Q3 2025 from $205 million in Q3 2024[21] - Net interest margin (taxable-equivalent basis) was 3.71% in Q3 2025, down from 4.11% in Q3 2024[21] Average Balance Sheet & Financial Ratios Average total assets grew to $212,924 million in Q3 2025, with average loans increasing, while deposits slightly decreased YoY Average Balance Sheet & Financial Ratios (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Average Total Assets | $212,924 | $212,145 | $208,667 | $202,799 | $200,267 | | Average Total Loans | $184,442 | $181,268 | $178,016 | $173,210 | $171,898 | | Average Total Deposits | $273,077 | $264,647 | $271,452 | $276,386 | $271,555 | | Return on average assets | 2.17% | 2.06% | 2.30% | 2.52% | 2.37% | | Efficiency ratio | 43.3% | 45.2% | 45.6% | 42.8% | 44.4% | - Average commercial loans increased by $11,856 million (10.4%) YoY to $125,669 million[23] - Average commercial real estate loans decreased by $3,153 million (8.5%) YoY to $33,754 million[23] Credit Quality Total net charge-offs increased to $119 million in Q3 2025, driven by commercial real estate, while nonperforming assets decreased QoQ Credit Quality (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Total net charge-offs | $119 | $106 | $61 | $119 | $140 | | Commercial real estate net charge-offs | $105 | $58 | ($5) | $46 | $67 | | Total nonperforming assets | $1,209 | $1,241 | $1,273 | $1,384 | $1,359 | - The net charge-off ratio for commercial real estate was 1.23% in Q3 2025, up from 0.72% in Q3 2024[23] - Nonperforming loans decreased by $32 million (2.6%) QoQ and $151 million (11.1%) YoY[23] Other Information (Loans, Deposits, Noninterest Income, AUM) Total Assets Under Management increased by 8.4% YoY to $530,017 million, driven by significant growth in money market funds Other Information (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total Assets Under Management | $530,017 | $536,373 | $524,272 | $505,125 | $489,035 | | Global capital markets revenue | $281 | $246 | $240 | $203 | $246 | | Wealth management trust and investment management fees | $175 | $172 | $167 | $177 | $169 | | Global corporate trust deposits (average) | $56,939 | $54,385 | $59,345 | $66,420 | $66,609 | - Money market AUM increased by $34,012 million (21.2%) YoY to $194,604 million[24] - Institutional client group average loan balances increased by $8,534 million (10.2%) YoY to $92,015 million[24] Consumer and Business Banking Net income for the segment was $465 million in Q3 2025, declining QoQ and YoY, despite increased noninterest income from mortgage banking revenue Income Statement Net income was $465 million in Q3 2025, decreasing QoQ and YoY, with total noninterest income growth driven by mortgage banking revenue Income Statement (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income attributable to U.S. Bancorp | $465 | $474 | $421 | $427 | $485 | | Net Interest Income (taxable-equivalent) | $1,849 | $1,842 | $1,768 | $1,912 | $1,928 | | Total noninterest income | $436 | $407 | $408 | $367 | $401 | | Mortgage banking revenue | $180 | $162 | $173 | $116 | $155 | | Provision for Credit Losses | $61 | $39 | $62 | $80 | $18 | - Mortgage banking revenue increased by $18 million (11.1%) QoQ and $25 million (16.1%) YoY[25] - Net interest margin (taxable-equivalent basis) was 4.95% in Q3 2025, up from 4.79% QoQ but down from 4.86% YoY[25] Average Balance Sheet & Financial Ratios Average total assets decreased to $158,749 million in Q3 2025, with average loans declining, while deposits increased QoQ but remained stable YoY Average Balance Sheet & Financial Ratios (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Average Total Assets | $158,749 | $164,989 | $166,491 | $168,690 | $168,871 | | Average Total Loans | $145,900 | $149,475 | $153,906 | $155,036 | $155,240 | | Average Total Deposits | $221,963 | $220,370 | $217,990 | $218,823 | $220,000 | | Return on average assets | 1.16% | 1.15% | 1.03% | 1.01% | 1.14% | | Efficiency ratio | 70.2% | 70.2% | 71.3% | 71.5% | 71.4% | - Average residential mortgages decreased by $6,127 million (6.0%) YoY to $95,724 million[27] - Average other retail loans decreased by $3,338 million (8.9%) YoY to $33,999 million[27] Credit Quality Total net charge-offs increased to $74 million in Q3 2025, driven by other retail loans, while nonperforming assets remained stable QoQ and YoY Credit Quality (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Total net charge-offs | $74 | $66 | $75 | $74 | $65 | | Other retail net charge-offs | $58 | $52 | $62 | $62 | $50 | | Total nonperforming assets | $417 | $412 | $406 | $407 | $419 | - The net charge-off ratio for other retail loans was 0.68% in Q3 2025, up from 0.53% in Q3 2024[27] - Nonperforming loans remained stable at $394 million in Q3 2025 compared to $398 million in Q3 2024[27] Other Information (Retail Loans, Mortgage Banking) Retail credit and mortgage production volumes increased QoQ but decreased YoY, while the fair value of mortgage servicing rights remained substantial Other Information (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total retail credit production volume | $4,629 | $4,306 | $3,457 | $3,374 | $3,684 | | Mortgage production volume | $9,951 | $9,645 | $6,562 | $10,211 | $11,076 | | Mortgages serviced for others | $216,146 | $220,795 | $216,701 | $216,648 | $215,286 | | of branches | 2,080 | 2,081 | 2,117 | 2,165 | 2,187 | | Mortgage servicing rights fair value | $3,289 (as of Sep 30, 2025) | | | | | - Mortgage production volume increased by $306 million (3.2%) QoQ but decreased by $1,125 million (10.2%) YoY[29] - The number of branches decreased by 107 (4.9%) YoY, reflecting ongoing network optimization[28] Payment Services Net income for the segment was $326 million in Q3 2025, increasing YoY but decreasing QoQ, with YoY growth in net interest and noninterest income Income Statement Net income was $326 million in Q3 2025, increasing YoY but decreasing QoQ, with strong net interest and noninterest income growth Income Statement (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income attributable to U.S. Bancorp | $326 | $343 | $354 | $233 | $304 | | Net Interest Income (taxable-equivalent) | $781 | $730 | $742 | $729 | $727 | | Total noninterest income | $1,106 | $1,116 | $1,035 | $1,051 | $1,073 | | Card revenue | $437 | $439 | $396 | $431 | $424 | | Merchant processing services | $463 | $474 | $415 | $419 | $440 | | Provision for Credit Losses | $408 | $384 | $317 | $463 | $404 | - Net interest margin (taxable-equivalent basis) was 7.21% in Q3 2025, up from 6.93% QoQ and 6.94% YoY[33] - The efficiency ratio improved to 55.3% in Q3 2025 from 56.5% in Q3 2024[33] Average Balance Sheet & Financial Ratios Average total assets grew to $48,424 million in Q3 2025, with average loans increasing, primarily driven by credit card loans Average Balance Sheet & Financial Ratios (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Average Total Assets | $48,424 | $47,835 | $46,825 | $48,545 | $47,195 | | Average Total Loans | $42,957 | $42,224 | $41,607 | $42,021 | $41,652 | | Average Credit Card Loans | $30,241 | $29,588 | $29,404 | $29,438 | $28,994 | | Average Total Deposits | $2,522 | $2,606 | $2,776 | $2,686 | $2,748 | | Return on average assets | 2.67% | 2.88% | 3.07% | 1.91% | 2.56% | | Efficiency ratio | 55.3% | 54.4% | 55.6% | 56.5% | 55.0% | - Average credit card loans increased by $1,247 million (4.3%) YoY[35] - Average commercial loans increased by $777 million (6.2%) YoY to $12,588 million[35] Credit Quality Total net charge-offs decreased QoQ to $347 million but increased YoY, with credit card net charge-off ratio improving QoQ Credit Quality (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Total net charge-offs | $347 | $381 | $389 | $378 | $359 | | Credit card net charge-offs | $284 | $317 | $325 | $317 | $299 | | Credit card net charge-off ratio | 3.73% | 4.30% | 4.48% | 4.28% | 4.10% | | Nonperforming loans | $0 | $0 | $0 | $0 | $0 | - Commercial net charge-offs remained stable at $62 million in Q3 2025 compared to $59 million in Q3 2024[35] Other Information (Noninterest Income, Payment Volumes) All payment volumes, including retail, corporate, and merchant acquiring, showed QoQ and YoY growth, indicating strong operational activity Other Information (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total noninterest income | $1,106 | $1,116 | $1,035 | $1,051 | $1,073 | | Total retail payment solutions volume | $66,517 | $65,953 | $60,989 | $64,887 | $64,211 | | Corporate payment systems volume | $23,312 | $22,317 | $21,612 | $21,859 | $23,808 | | Merchant volume (acquiring) | $157,540 | $155,853 | $143,505 | $142,576 | $148,338 | | of merchant transactions | 2,305,019,024 | 2,259,541,900 | 2,014,546,904 | 2,112,763,544 | 2,171,741,540 | - Merchant volume (acquiring) increased by $1,687 million (1.1%) QoQ and $9,202 million (6.2%) YoY[36] - Total retail payment solutions volume increased by $2,306 million (3.6%) YoY[36] Treasury and Corporate Support The segment reported $48 million net income in Q3 2025, a significant improvement from prior losses, driven by improved net interest income and reduced securities losses Income Statement Net income was $48 million in Q3 2025, a substantial improvement from prior net losses, with improved net interest income and reduced securities losses Income Statement (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income (loss) attributable to U.S. Bancorp | $48 | ($89) | ($250) | ($283) | ($269) | | Net Interest Income (taxable-equivalent) | ($202) | ($275) | ($145) | ($400) | ($378) | | Securities gains (losses), net | ($7) | ($57) | $0 | ($1) | ($119) | | Provision for Credit Losses | ($95) | ($105) | $148 | ($33) | $41 | - Total net revenue improved significantly from ($299) million in Q3 2024 to $78 million in Q3 2025[37] - Income (loss) before provision and income taxes improved from ($501) million in Q3 2024 to ($138) million in Q3 2025[37] Average Balance Sheet & Financial Ratios Average total assets increased to $259,508 million in Q3 2025, with other earning assets as the largest component, while deposits decreased QoQ Average Balance Sheet & Financial Ratios (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Average Total Assets | $259,508 | $248,372 | $247,410 | $251,873 | $248,307 | | Average Total Loans | $5,853 | $5,562 | $5,499 | $5,388 | $5,280 | | Average Other Earning Assets | $225,295 | $217,155 | $217,410 | $224,186 | $219,624 | | Average Total Deposits | $14,220 | $15,267 | $14,316 | $14,418 | $14,454 | - Average total assets increased by $11,136 million (4.5%) QoQ and $11,201 million (4.5%) YoY[39] - Average other earning assets increased by $5,671 million (2.6%) YoY[39] Credit Quality The segment reported negative net charge-offs of ($4) million in Q3 2025, indicating net recoveries, with nonperforming assets decreasing YoY Credit Quality (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Total net charge-offs | ($4) | $1 | $22 | ($9) | $0 | | Total nonperforming assets | $28 | $27 | $48 | $41 | $70 | - Nonperforming loans decreased from $52 million in Q3 2024 to $8 million in Q3 2025[39]