U.S. Bancorp(US:USB)2025-11-04 22:33Financial Performance - Net interest income for Q3 2025 was $4,222 million, a 2.1% increase from $4,135 million in Q3 2024[13] - Noninterest income increased by 14.1% to $3,078 million in Q3 2025, compared to $2,698 million in Q3 2024[13] - Total net revenue for Q3 2025 reached $7,329 million, reflecting a 6.8% growth from $6,864 million in Q3 2024[13] - Net income attributable to U.S. Bancorp for the nine months ended September 30, 2025, was $5,525 million, up 19.2% from $4,636 million in the same period of 2024[13] - Earnings per share for Q3 2025 increased by 18.4% to $1.22, compared to $1.03 in Q3 2024[13] - Total net revenue for the first nine months of 2025 was $845 million (4.1%) higher than the same period in 2024, reflecting a 1.8% increase in net interest income and a 7.6% increase in noninterest income[21] - Total net revenue for Consumer and Business Banking increased by 4.8% to $1,887 million in Q3 2025 compared to Q3 2024[171] - Total net revenue for Q3 2025 was $465 million (6.8%) higher than Q3 2024, driven by a 2.1% increase in net interest income and a 14.1% increase in noninterest income[17] Asset Quality - Nonperforming assets decreased by 9.7% to $1,654 million as of September 30, 2025, down from $1,832 million[13] - The provision for credit losses in Q3 2025 was $14 million (2.5%) higher than in Q3 2024, attributed to loan portfolio growth[19] - The provision for credit losses for the first nine months of 2025 decreased by $69 million (4.1%) compared to the same period in 2024, driven by loan portfolio sales and improved credit quality[23] - The Company reported accruing loans 90 days or more past due totaling $840 million as of September 30, 2025, an increase from $810 million at December 31, 2024, with a ratio of 0.22% of total loans[69] - The delinquency ratio for total loans was 0.22% at September 30, 2025, compared to 0.21% at December 31, 2024[70] - Nonperforming loans totaled $1.61 billion at September 30, 2025, down from $1.79 billion at December 31, 2024, indicating a decrease of 9.7%[84] - The total allowance for credit losses is determined through systematic methodologies based on the loan portfolio segments[57] - The allowance for credit losses was $7.9 billion as of September 30, 2025, unchanged from December 31, 2024, with a decrease of $28 million (0.4%) attributed to loan sales and improved credit quality[100] Capital and Equity - Common equity tier 1 capital ratio increased to 10.9% as of September 30, 2025, compared to 10.6% at the end of 2024[13] - Total U.S. Bancorp shareholders' equity rose by 8.1% to $63,340 million as of September 30, 2025, from $58,578 million at the end of 2024[13] - The Company's common equity tier 1 capital as a percent of risk-weighted assets was 10.9 percent at September 30, 2025, compared to 10.6 percent at December 31, 2024[149] - The Company's total shareholders' equity increased to $63.3 billion at September 30, 2025, from $58.6 billion at December 31, 2024, primarily due to corporate earnings and changes in unrealized gains and losses on investment securities[151] Loans and Deposits - The loan portfolio increased to $382.5 billion as of September 30, 2025, up $2.7 billion (0.7%) from December 31, 2024, driven by an $8.9 billion (6.4%) increase in commercial loans[35] - Total deposits reached $526.1 billion at September 30, 2025, an increase of $7.8 billion (1.5%) from December 31, 2024, with noninterest-bearing deposits up $7.4 billion (8.8%)[47] - Total loans at period-end increased to $382.5 billion at September 30, 2025, compared to $379.8 billion at December 31, 2024[84] - Total deposits increased to $526,149 million as of September 30, 2025, compared to $518,309 million at the end of 2024[185] Interest Rate and Liquidity Management - The sensitivity of net interest income to a 50 basis point increase in interest rates is projected to be a decrease of 0.35% for the next 12 months[117] - The company remains relatively neutral to a parallel 50 basis point shift in interest rates, with asset and liability repricing closely aligned[118] - The Company reported total available liquidity of $312.4 billion as of September 30, 2025, compared to $286.6 billion at December 31, 2024[135] - The average daily Liquidity Coverage Ratio (LCR) was 107.3% for the three months ended September 30, 2025, up from 106.6% for the same period in 2024, indicating compliance with regulatory requirements[139] Investment Securities - Investment securities totaled $166.0 billion at September 30, 2025, reflecting a $1.4 billion (0.8%) increase from December 31, 2024, mainly due to favorable changes in net unrealized gains[41] - The Company reported net unrealized losses on available-for-sale investment securities of $5.1 billion as of September 30, 2025, down from $6.8 billion at December 31, 2024[42] - The total unrealized losses on investment securities as of September 30, 2025, amounted to $5.047 billion, with $1.498 billion attributed to U.S. Treasury and agencies securities[200] - Total available-for-sale investment securities reached $93,817 million with a fair value of $89,065 million and a weighted-average yield of 3.59%[204] Shareholder Returns - The Company authorized a share repurchase program of up to $5.0 billion effective September 13, 2024[152] - U.S. Bancorp's common stock dividends increased to $2,384 million in 2025, up from $2,325 million in 2024, reflecting a commitment to returning value to shareholders[193]