US BANCORP DE
For the period ended Sep 30, 2024. Filed Nov 5, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 5, 2024
USB$59.45-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-06.
0000036104-24-000052
Item 2. Management’s Discussion and Analysis2) Quantitative and Qualitative Disclosures About Market Risk/Corporate Risk Profile (Item 3)3) Line of Business Financial ReviewCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-05.
0000036104-24-000072
Item 2. Management’s Discussion and Analysis2) Quantitative and Qualitative Disclosures About Market Risk/Corporate Risk Profile (Item 3)3) Line of Business Financial ReviewThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 218 previous paragraphs and 219 current paragraphs.
116 unchanged; 85 reworded; 13 added; 15 removed; 2 previous and 5 current paragraphs rearranged.
Tables are not compared: 60 previous and 60 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
Noninterest expense in the third quarter of 2024 was $326 million (7.2 percent) lower than the third quarter of 2023, primarily due to the impact of merger and integration charges in the prior year and lower other noninterest expense, partially offset by higher compensation and employee benefits expense.
Current report
The provision for credit losses for the third quarter of 2024 was $42 million (8.2 percent) higher than the third quarter of 2023, driven by higher net charge-offs. Net charge-offs in the third quarter of 2024 were $564 million, compared with $420 million in the third quarter of 2023. Refer to “Corporate Risk Profile” for further information on the provision for credit losses, net charge-offs, nonperforming assets and other factors considered by the Company in assessing the credit quality of the loan portfolio and establishing the allowance for credit losses.
Current report
Noninterest expense in the first nine months of 2024 was $777 million (5.7 percent) lower than the first nine months of 2023, primarily due to lower merger and integration charges, partially offset by higher compensation and employee benefits expense and the impact of the FDIC special assessment.
Current report
The provision for credit losses for the first nine months of 2024 was $85 million (4.8 percent) lower than the first nine months of 2023, driven by the impacts of balance sheet repositioning and capital management actions taken in the second quarter of 2023, partially offset by higher net charge-offs in the current year. Net charge-offs in the first nine months of 2024 were $1.6 billion, compared with $1.4 billion in the first nine months of 2023. Refer to “Corporate Risk Profile” for further information on the provision for credit losses, net charge-offs, nonperforming assets and other factors considered by the Company in assessing the credit quality of the loan portfolio and establishing the allowance for credit losses.
Current report
Provision for Credit Losses The provision for credit losses was $557 million in the third quarter of 2024, representing an
Current report
first nine months of 2023, primarily due to synergies from the MUB acquisition.
Current report
compared with 0.44 percent and 0.50 percent, respectively, for the same periods of 2023.
Current report
Net revenue decreased $12 million (0.4 percent) in the third quarter and increased $94 million (1.0 percent) in the first nine months of 2024, compared with the same periods of 2023. Net interest income, on a taxable-equivalent basis, decreased $127 million (6.3 percent) in the third quarter and $173 million (2.9 percent) in the first nine months of 2024, compared with the same periods of 2023, primarily due to lower noninterest-bearing deposit balances, partially offset by the impact of higher interest rates. Noninterest income increased $115 million (11.2 percent) in the third quarter and $267 million (8.6 percent) in the first nine months of 2024, compared with the same periods of 2023, primarily due to higher commercial products revenue and trust and investment management fees, both driven by business growth and favorable market conditions.
Current report
Noninterest expense increased $24 million (1.8 percent) in the third quarter of 2024, compared with the third quarter of 2023, primarily due to higher net shared services expense. Noninterest expense increased $62 million (1.5 percent) in the first nine months of 2024, compared with the first nine months of 2023, primarily due to higher compensation and employee benefits expense. The provision for credit losses decreased $42 million (30.9 percent) in the third quarter of 2024, compared with the third quarter of 2023, primarily due to stable credit quality in the current quarter. The provision for credit losses increased $64 million (23.6 percent) in the first nine months of 2024, compared with the first nine months of 2023, primarily due to higher net charge-offs, partially offset by slower credit deterioration in the first nine months of 2024.
Current report
Net revenue decreased $144 million (5.8 percent) in the third quarter and $1.0 billion (12.7 percent) in the first nine months of 2024, compared with the same periods of 2023. Net
Current report
Noninterest expense decreased $36 million (2.1 percent) in the third quarter and $269 million (5.1 percent) in the first nine months of 2024, compared with the same periods of 2023, primarily due to lower compensation and employee benefits expense and net shared services expense. The provision for credit losses increased $11 million in the third quarter and $72 million in the first nine months of 2024, compared with the same periods of 2023, primarily due to higher net charge-offs.
Current report
Noninterest expense increased $20 million (2.0 percent) in the third quarter and $169 million (5.9 percent) in the first nine months of 2024, compared with the same periods of 2023, reflecting higher net shared services expense. The provision for credit losses increased $5 million (1.3 percent) in the third quarter and $218 million (23.4 percent) in the first nine months of 2024, compared with the same periods of 2023, primarily due to higher net charge-offs.
Current report
Noninterest expense decreased $334 million (72.1 percent) in the third quarter and $739 million (50.5 percent) in the first nine months of 2024, compared with the same periods of 2023, primarily due to lower merger and integration charges and lower other noninterest expense, partially offset by higher higher compensation and employee benefits expense. The decrease in noninterest expense in the first nine months of 2024, compared with the first nine months of 2023, was further offset by the impact of the FDIC special assessment in the current year. The provision for credit losses increased $68 million in the third quarter of 2024, compared with the third quarter of 2023, primarily due to the impact of continued economic uncertainty not allocated to business line reserves. The provision for credit losses decreased $439 million (83.0 percent) in the first nine months of 2024, compared with the first nine months of 2023, primarily due to balance sheet repositioning and capital management actions in the prior year.
Removed paragraphs (15)
Previous report
Noninterest expense in the second quarter of 2024 was $355 million (7.8 percent) lower than the second quarter of 2023, primarily due to synergies from the MUB acquisition and lower merger and integration charges, prudent expense management and continued focus on operational efficiency, partially offset by higher marketing and business development expense.
Previous report
The provision for credit losses for the second quarter of 2024 was $253 million (30.8 percent) lower than the second quarter of 2023, driven by the impacts of balance sheet repositioning and capital management actions taken in the second quarter of 2023, along with stabilization in the economic and credit environment. Net charge-offs in the second quarter of 2024 were $538 million, compared with $649 million in the second quarter of 2023. Refer to “Corporate Risk Profile” for further information on the provision for credit losses, net charge-offs, nonperforming assets and other factors considered by the Company in assessing the credit quality of the loan portfolio and establishing the allowance for credit losses.
Previous report
Noninterest expense in the first six months of 2024 was $451 million (4.9 percent) lower than the first six months of 2023, primarily due to synergies from the MUB acquisition and lower merger and integration charges, prudent expense management and continued focus on operational efficiency, partially offset by higher marketing and business development expense.
Previous report
The provision for credit losses for the first six months of 2024 was $127 million (10.2 percent) lower than the first six months of 2023, driven by the impacts of balance sheet repositioning and capital management actions taken in the second quarter of 2023. Net charge-offs were $1.0 billion in both of the first six months of 2024 and 2023. Refer to “Corporate Risk Profile” for further information on the provision for credit losses, net charge-offs, nonperforming assets and other factors considered by the Company in assessing the credit quality of the loan portfolio and establishing the allowance for credit losses.
Previous report
respectively, than the same periods of 2023, driven by decreases in Wealth, Corporate, Commercial and Institutional Banking, and Consumer and Business Banking balances. The decreases were due in part to the impact of higher interest rates and a product change for certain MUB retail checking accounts into interest checking accounts at conversion to create a better customer experience.
Previous report
second quarter and first six months of 2024 was 0.58 percent and 0.55 percent, respectively, compared with 0.67 percent and 0.53 percent, respectively, for the same periods of 2023.
Previous report
six months of 2024, reflecting portfolio growth and credit downgrades in commercial and commercial real estate portfolios.
Previous report
(a)Includes 175,000 shares of common stock purchased, at an average price per share of $40.89, in open-market transactions by U.S. Bank National Association, the Company’s banking subsidiary, in its capacity as trustee of the U.S. Bank 401(k) Savings Plan, which is the Company’s employee retirement savings plan.
Previous report
Net revenue increased $72 million (2.4 percent) in the second quarter and $107 million (1.8 percent) in the first six months of 2024, compared with the same periods of 2023. Net interest income, on a taxable-equivalent basis, increased $12 million (0.6 percent) in the second quarter of 2024, compared with the second quarter of 2023, primarily due to growth in interest-bearing deposits, partially offset by lower non-interest bearing deposits. Net interest income, on a taxable-equivalent basis, decreased $47 million (1.2 percent) in the first six months of 2024, compared with the first six months of 2023, primarily due to the impact of deposit mix and pricing. Noninterest income increased $60 million (5.6 percent) in the second quarter and $154 million (7.4 percent) in the first six months of 2024, compared with the same periods of 2023, primarily due to higher trust and investment management fees and investment products fees, both driven by business growth and favorable market conditions.
Previous report
Noninterest expense decreased $6 million (0.4 percent) in the second quarter of 2024, compared with the second quarter of 2023, primarily due to synergies from the MUB acquisition, partially offset by higher compensation and employee benefits expense. Noninterest expense increased $8 million (0.3 percent) in the first six months of 2024, compared with the first six months of 2023, primarily due to higher compensation and employee benefits expense. The provision for credit losses decreased $62 million (38.3 percent) in the second quarter of 2024, compared with the second quarter of 2023, primarily due to stabilizing credit quality. The provision for credit losses increased $106 million (78.5 percent) in the first six months of 2024, compared with the first six months of 2023, primarily due to select commercial credit downgrades and charge-offs in the first six months of 2024.
Previous report
strategic business partners. Consumer and Business Banking contributed $512 million of the Company’s net income in the second quarter and $996 million in the first six months of 2024, or decreases of $197 million (27.8 percent) and $500 million (33.4 percent), respectively, compared with the same periods of 2023.
Previous report
Noninterest expense decreased $142 million (8.0 percent) in the second quarter and $272 million (7.8 percent) in the first six months of 2024, compared with the same periods of 2023, primarily due to synergies from the MUB acquisition. The provision for credit losses increased $14 million (87.5 percent) in the second quarter and $61 million in the first six months of 2024, compared with the same periods of 2023, due to credit deterioration and stabilization in balances. Economic conditions and delinquencies have subsequently stabilized.
Previous report
Noninterest expense increased $42 million (4.5 percent) in the second quarter and $92 million (4.9 percent) in the first six months of 2024, compared with the same periods of 2023, reflecting higher net shared services expense driven by investment in infrastructure, along with higher marketing and business development expense. The provision for credit losses increased $74 million (23.6 percent) in the second quarter and $213 million (39.9 percent) in the first six months
Previous report
of 2024, compared with the same periods of 2023, primarily due to a combination of loan growth and credit deterioration. Economic conditions and delinquencies have subsequently stabilized.
Previous report
Noninterest expense decreased $249 million (51.4 percent) in the second quarter and $279 million (27.9 percent) in the first six months of 2024, compared with the same periods of 2023, primarily due to synergies from the MUB acquisition and lower merger and integration charges, as well as prudent expense management and continued focus on operational efficiency, partially offset by the impact of the FDIC special assessment in the current year, higher net shared services expense and higher marketing and business development expense due to the timing of campaigns. The provision for credit losses decreased $279 million (84.8 percent) in the second quarter and $507 million (91.2 percent) in the first six months of 2024, compared with the same periods of 2023, primarily due to balance sheet repositioning and capital management actions in the prior year, along with relative stability in the economic outlook in the current year.
Reworded paragraphs (85)
Previous wording
Earnings Summary U.S. Bancorp and its subsidiaries (the “Company”) reported net income attributable to U.S. Bancorp of $1.6 billion for the second quarter of 2024, or $0.97 per diluted common share, compared with $1.4 billion, or $0.84 per diluted common share, for the second quarter of 2023. Return on average assets and return on average common equity were 0.97 percent and 12.4 percent, respectively, for the second quarter of 2024, compared with 0.81 percent and 10.9 percent, respectively, for the second quarter of 2023. The results for the second quarter of 2024 included the impact of a $26 million ($19 million net-of-tax) notable item for an increase in the FDIC special assessment to recover losses to the Deposit Insurance Fund related to certain 2023 bank failures, which decreased diluted earnings per common share by $0.01. The results for the second quarter of 2023 included the impact of $575 million ($432 million net-of-tax) of notable items, including $310 million of merger and integration charges associated with the acquisition of MUFG Union Bank, N.A. (“MUB”), and $243 million of provision for credit losses and an additional $22 million of losses related to balance sheet repositioning and capital management actions. Combined, these items decreased diluted earnings per common share for the second quarter of 2023 by $0.28.
Current wording
Earnings Summary U.S. Bancorp and its subsidiaries (the “Company”) reported net income attributable to U.S. Bancorp of $1.7 billion for the third quarter of 2024, or $1.03 per diluted common share, compared with $1.5 billion, or $0.91 per diluted common share, for the third quarter of 2023. Return on average assets and return on average common equity were 1.03 percent and 12.4 percent, respectively, for the third quarter of 2024, compared with 0.91 percent and 11.9 percent, respectively, for the third quarter of 2023. The results for the third quarter of 2023 included the impact of $284 million ($213 million net-of-tax) of merger and integration charges associated with the acquisition of MUFG Union Bank, N.A. (“MUB”), which decreased diluted earnings per common share for the third quarter of 2023 by $0.14.
Previous wording
Total net revenue for the second quarter of 2024 was $308 million (4.3 percent) lower than the second quarter of 2023, reflecting an 8.9 percent decrease in net interest income, partially offset by a 3.3 percent increase in noninterest income. The decrease in net interest income from the second quarter of 2023 was primarily due to the impact of higher interest rates on deposit mix and pricing, partially offset by higher rates on earning assets. The increase in noninterest income was driven by higher fee revenue across most categories.
Current wording
Total net revenue for the third quarter of 2024 was $168 million (2.4 percent) lower than the third quarter of 2023, reflecting a 2.4 percent decrease in net interest income and a 2.4 percent decrease in noninterest income. The decrease in net interest income from the third quarter of 2023 was primarily due to the impact of higher interest rates on deposit mix and pricing, partially offset by higher rates on earning assets and changes in balance sheet composition. The decrease in noninterest income was driven by net losses on the sales of investment securities, lower service charges and lower other noninterest income, partially offset by higher fee revenue across all other categories.
Previous wording
average assets and return on average common equity were 0.89 percent and 11.2 percent, respectively, for the first six months of 2024, compared with 0.92 percent and 12.5 percent, respectively, for the first six months of 2023. The results for the first six months of 2024 included the impact of $291 million ($218 million net-of-tax) of notable items, including $155 million of merger and integration charges and a $136 million charge for the increase in the FDIC special assessment. Combined, these items decreased diluted earnings per common share for the first six months of 2024 by $0.14. The results for the first six months of 2023 included the impact of $819 million ($615 million net-of-tax) of notable items, including $554 million of merger and integration charges, and $243 million of provision for credit losses and an additional $22 million of losses related to balance sheet repositioning and capital management actions. Combined, these items decreased diluted earnings per common share for the first six months of 2023 by $0.40.
Current wording
Net income attributable to U.S. Bancorp for the first nine months of 2024 was $4.6 billion, or $2.77 per diluted common share, compared with $4.6 billion, or $2.79 per diluted common share, for the first nine months of 2023. Return on average assets and return on average common equity were 0.94 percent and 11.6 percent, respectively, for the first nine months of 2024, compared with 0.92 percent and 12.3 percent, respectively, for the first nine months of 2023. The results for the first nine months of 2024 included the impact of $291 million ($218 million net-of-tax) of notable items, including $155 million of merger and integration charges and a $136 million charge for an increase in the FDIC special assessment to recover losses to the Deposit Insurance Fund related to certain 2023 bank failures. Combined, these items
Previous wording
Total net revenue for the first six months of 2024 was $768 million (5.4 percent) lower than the first six months of 2023, reflecting an 11.5 percent decrease in net interest income, partially offset by a 5.4 percent increase in noninterest income. The decrease in net interest income from the first six months of 2023 was primarily due to the impact of higher interest rates on deposit mix and pricing, partially offset by higher rates on earning assets. The increase in noninterest income was driven by higher fee revenue across most categories.
Current wording
Total net revenue for the first nine months of 2024 was $936 million (4.4 percent) lower than the first nine months of 2023, reflecting an 8.6 percent decrease in net interest income, partially offset by a 2.7 percent increase in noninterest income. The decrease in net interest income from the first nine months of 2023 was primarily due to the impact of higher interest rates on deposit mix and pricing, partially offset by higher rates on earning assets and changes in balance sheet composition. The increase in noninterest income was driven by higher fee revenue across most categories, partially offset by higher net losses on the sales of investment securities, lower service charges and lower other noninterest income.
Previous wording
Net Interest Income Net interest income, on a taxable-equivalent basis, was $4.1 billion in the second quarter and $8.1 billion in the first six months of 2024, representing decreases of $397 million (8.9 percent) and $1.1 billion (11.5 percent), respectively, compared with the same periods of 2023. The decreases were primarily due to the impact of higher interest rates on deposit mix and pricing, partially offset by higher rates on earning assets. Average earning assets for the second quarter and first six months of 2024 were $4.9
Current wording
Net Interest Income Net interest income, on a taxable-equivalent basis, was $4.2 billion in the third quarter and $12.2 billion in the first nine months of 2024, representing decreases of $102 million (2.4 percent) and $1.2 billion (8.6 percent), respectively, compared with the same periods of 2023. The decreases were primarily due to the impact of higher interest rates on deposit mix and pricing, partially offset by higher rates on earning assets and changes in balance sheet composition. Average earning assets for the third quarter of 2024 were $1.9 billion (0.3 percent) higher than the third quarter of 2023, reflecting increases in investment securities and other earning assets, partially offset by decreases in loans and interest-bearing deposits with banks. Average earning assets for the first nine months of 2024 were $4.8 billion (0.8 percent) lower than the first nine months of 2023, reflecting a
Previous wording
billion (0.8 percent) and $8.2 billion (1.3 percent) lower, respectively, than the same periods of 2023, reflecting a decrease in loans, partially offset by increases in investment securities and interest-bearing deposits with banks. The net interest margin, on a taxable-equivalent basis, in the second quarter and first six months of 2024 was 2.67 percent and 2.68 percent, respectively, compared with 2.90 percent and 3.00 percent in the second quarter and first six months of 2023, respectively. The decreases in net interest margin from the prior year were primarily due to the impact of deposit mix and pricing, partially offset by higher rates on earning assets as fixed-rate assets repriced at higher levels. Refer to the “Consolidated Daily Average Balance Sheet and Related Yields and Rates” table for further information on net interest income.
Current wording
decrease in loans, partially offset by increases in investment securities and interest-bearing deposits with banks. The net interest margin, on a taxable-equivalent basis, in the third quarter and first nine months of 2024 was 2.74 percent and 2.70 percent, respectively, compared with 2.81 percent and 2.94 percent in the third quarter and first nine months of 2023, respectively. The decreases in net interest margin from the same periods of the prior year were primarily due to the impact of higher interest rates on deposit mix and pricing, partially offset by higher rates on earning assets and changes in balance sheet composition. Refer to the “Consolidated Daily Average Balance Sheet and Related Yields and Rates” table for further information on net interest income.
Previous wording
Average total loans in the second quarter and first six months of 2024 were $14.1 billion (3.6 percent) and $14.9 billion (3.8 percent) lower, respectively, than the same periods of 2023. The decreases were primarily due to lower other retail loans, commercial loans and commercial real estate loans, partially offset by higher credit card loans. The decrease in average other retail loans was driven by lower auto loans primarily due to balance sheet repositioning and capital management actions taken in the second quarter of 2023. The decrease in average commercial loans was primarily due to decreased demand as corporate customers accessed the capital markets. The decrease in average commercial real estate loans was primarily due to payoffs exceeding a reduced level of new originations. The increase in average credit cards loans was primarily driven by higher spend volume.
Current wording
Average total loans in the third quarter and first nine months of 2024 were $2.8 billion (0.7 percent) and $10.8 billion (2.8 percent) lower, respectively, than the same periods of 2023. The decreases were primarily due to lower other retail loans, commercial loans and commercial real estate loans, partially offset by higher credit card loans and residential mortgages. The decreases in average other retail loans were driven by lower automobile loans. The decreases in average commercial loans were primarily due to decreased demand as corporate customers accessed the capital markets. The decreases in average commercial real estate loans were primarily due to payoffs exceeding a reduced level of new originations. The increases in average credit cards loans were primarily driven by higher spend volume. The increases in residential mortgages were primarily driven by originations.
Previous wording
Average investment securities in the second quarter and first six months of 2024 were $7.2 billion (4.5 percent) and $1.2 billion (0.7 percent) higher, respectively, than the same periods of 2023, primarily due to balance sheet positioning and liquidity management.
Current wording
Average investment securities in the third quarter and first nine months of 2024 were $3.7 billion (2.2 percent) and $2.0 billion (1.2 percent) higher, respectively, than the same periods of 2023, primarily due to balance sheet positioning and liquidity management.
Previous wording
Average total deposits for the second quarter and first six months of 2024 were $16.6 billion (3.3 percent) and $4.7 billion (0.9 percent) higher, respectively, than the same periods of 2023. Average total savings deposits for the second quarter and first six months of 2024 were $33.1 billion (9.7 percent) and $25.6 billion (7.5 percent) higher, respectively, than the same periods of 2023, driven by increases in Wealth, Corporate, Commercial and Institutional Banking, and Consumer and Business Banking balances. Average time deposits for the second quarter and first six months of 2024 were $13.9 billion (31.9 percent) and $16.8 billion (42.4 percent) higher, respectively, than the same periods of 2023, mainly due to an increase in Consumer and Business Banking balances. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics. Average noninterest-bearing deposits for the second quarter and first six months of 2024 were $30.3 billion (26.7 percent) and $37.6 billion (30.9 percent) lower,
Current wording
Average total deposits for the third quarter and first nine months of 2024 were $3.5 billion (0.7 percent) lower and $1.9 billion (0.4 percent) higher, respectively, than the same periods of 2023. Average noninterest-bearing deposits for the third quarter and first nine months of 2024 were $16.6 billion (17.0 percent) and $30.5 billion (26.9 percent) lower, respectively, than the same periods of 2023, driven by decreases in Wealth, Corporate, Commercial and Institutional Banking, and Consumer and Business Banking balances. Average total savings deposits for the third quarter and first nine months of 2024 were $9.0 billion (2.5 percent) and $20.0 billion (5.7 percent) higher, respectively, than the same periods of 2023, driven by increases in Wealth, Corporate, Commercial and Institutional Banking, and Consumer and Business Banking balances. Average time deposits for the third quarter and first nine months of 2024 were $4.1 billion (7.5 percent) and $12.5 billion (28.0 percent) higher, respectively, than the same periods of 2023, mainly due to increases in Consumer and Business Banking balances. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics.
Previous wording
Provision for Credit Losses The provision for credit losses was $568 million in the second quarter and $1.1 billion in the first six months of 2024, representing decreases of $253 million (30.8 percent) and $127 million (10.2 percent), respectively, from the same periods of 2023. The decreases were primarily driven by the impact of balance sheet repositioning and capital management actions in the second quarter of 2023. Net charge-offs decreased $111 million (17.1 percent) in the second quarter of 2024, compared with the second quarter of 2023, reflecting the impact of prior year charge-offs related to balance sheet repositioning and capital management actions, partially offset by higher credit card and commercial loan charge-offs in the current year. Net charge-offs increased $4 million (0.4 percent) in the first six months of 2024, compared with the first six months of 2023, reflecting higher credit card and commercial loan charge-offs, partially offset by the impacts of charge-offs in the prior year related to acquired loans and balance sheet repositioning and capital management actions. Refer to “Corporate Risk Profile” for further information on the provision for credit losses, net charge-offs, nonperforming assets and other factors considered by the Company in assessing the credit quality of the loan portfolio and establishing the allowance for credit losses.
Current wording
increase of $42 million (8.2 percent) from the third quarter of 2023, driven by higher net charge-offs in the current year. Net charge-offs increased $144 million (34.3 percent) in the third quarter of 2024, compared with the third quarter of 2023, reflecting higher credit card, commercial and commercial real estate loan net charge-offs. The provision for credit losses was $1.7 billion in the first nine months of 2024, representing a decrease of $85 million (4.8 percent) from the first nine months of 2023. The decrease was primarily driven by the impacts of balance sheet repositioning and capital management actions in the second quarter of 2023, partially offset by higher net charge-offs in the current year. Net charge-offs increased $148 million (10.3 percent) in the first nine months of 2024, compared with the first nine months of 2023, reflecting higher credit card and commercial loan net charge-offs, partially offset by the impacts of charge-offs in the prior year related to acquired loans and balance sheet repositioning and capital management actions. Refer to “Corporate Risk Profile” for further information on the provision for credit losses, net charge-offs, nonperforming assets and other factors considered by the Company in assessing the credit quality of the loan portfolio and establishing the allowance for credit losses.
Previous wording
Noninterest Income Noninterest income was $2.8 billion in the second quarter and $5.5 billion in the first six months of 2024, representing increases of $89 million (3.3 percent) and $282 million (5.4 percent), respectively, compared with the same periods of 2023. The increases from the prior year reflected higher mortgage banking revenue, trust and investment management fees, payment services revenue, commercial products revenue and investment products fees, partially offset by losses on the sale of investment securities. Mortgage banking revenue increased primarily driven by a gain on the sale of mortgage servicing rights in the second quarter of 2024, along with the impact of balance sheet repositioning and capital management actions taken in the second quarter of 2023. Trust and investment management fees increased primarily due to business growth and favorable market conditions. Payment services revenue increased primarily due to higher merchant processing services revenue due to favorable rates, along with increased card revenue due to higher spend volume. Commercial products revenue increased primarily due to higher corporate bond fees. Investment products fees increased due to business growth and favorable market conditions.
Current wording
Noninterest Income Noninterest income was $2.7 billion in the third quarter and $8.2 billion in the first nine months of 2024, representing a decrease of $66 million (2.4 percent) and an increase of $216 million (2.7 percent), respectively, compared with the same periods of 2023. The decrease in noninterest income in the third quarter of 2024, compared with the third quarter of 2023, was driven by net losses on the sales of investment securities, lower service charges and lower other noninterest income, partially offset by higher commercial products revenue, trust and investment management fees and payment services revenue. The increase in noninterest income in the first nine months of 2024, compared with the first nine months of 2023, was driven by higher commercial products revenue, trust and investment management fees, payment services revenue and mortgage banking revenue, partially offset by higher net losses on the sales of investment securities, lower service charges and lower other noninterest income. Commercial products revenue increased in the current year primarily due to higher corporate bond fees and new product growth. Trust and investment management fees increased primarily due to business growth and favorable market conditions. Payment services revenue increased primarily due to higher merchant processing services revenue due to business volume growth and favorable rates, along with increased card revenue due to favorable rates. Mortgage banking revenue increased in the first nine months of 2024, compared with the first nine months of 2023, primarily driven by a gain on the sale of mortgage servicing rights in the second quarter of 2024, along with the impact of balance sheet repositioning and capital management actions taken in the second quarter of 2023.
Previous wording
Noninterest Expense Noninterest expense was $4.2 billion in the second quarter and $8.7 billion in the first six months of 2024, representing decreases of $355 million (7.8 percent) and $451 million (4.9 percent), respectively, from the same periods of 2023. The decreases from the prior year reflected synergies from the MUB acquisition and lower merger and integration charges, prudent expense management and continued focus on operational efficiency, partially offset by the impact of the FDIC special assessment and higher marketing and business development expense. Professional services expense and technology and communications expense decreased primarily due to synergies from the MUB acquisition. Compensation and employee benefits expense decreased in the second quarter of 2024, compared with the second quarter of 2023, primarily due to synergies from the MUB acquisition. Marketing and business development expense increased due to the timing of campaigns.
Current wording
Noninterest Expense Noninterest expense was $4.2 billion in the third quarter and $12.9 billion in the first nine months of 2024, representing decreases of $326 million (7.2 percent) and $777 million (5.7 percent), respectively, from the same periods of 2023. The decreases from the prior year reflected lower merger and integration charges and lower other noninterest expense, partially offset by higher compensation and employee benefits expense. The decrease in noninterest expense in the first nine months of 2024, compared with the first nine months of 2023, was further offset by the impact of the FDIC special assessment in the current year. Compensation and employee benefits expense increased in the current year primarily due to higher commissions and performance-based incentives. Marketing and business development expense increased in the first nine months of 2024, compared with the first nine months of 2023, primarily due to the timing of campaigns. Professional services expense decreased in the first nine months of 2024, compared with the
Previous wording
Income Tax Expense The provision for income taxes was $445 million (an effective rate of 21.6 percent) for the second quarter and $792 million (an effective rate of 21.2 percent) for the first six months of 2024, compared with $382 million (an effective rate of 21.8 percent) and $837 million (an effective rate of 21.4 percent) for the same periods of 2023, respectively. For further information on income taxes, refer to Note 11 of the Notes to Consolidated Financial Statements.
Current wording
Income Tax Expense The provision for income taxes was $350 million (an effective rate of 16.9 percent) for the third quarter and $1.1 billion (an effective rate of 19.7 percent) for the first nine months of 2024, compared with $431 million (an effective rate of 22.0 percent) and $1.3 billion (an effective rate of 21.6 percent) for the same periods of 2023, respectively. The tax rate in the third quarter and first nine months of 2024 reflected the impact of favorable settlements. For further information on income taxes, refer to Note 11 of the Notes to Consolidated Financial Statements.
Previous wording
Loans The Company’s loan portfolio was $376.1 billion at June 30, 2024, compared with $373.8 billion at December 31, 2023, an increase of $2.3 billion (0.6 percent). The increase was driven by higher commercial loans and residential mortgages, partially offset by lower commercial real estate loans and other retail loans.
Current wording
Loans The Company’s loan portfolio was $374.2 billion at September 30, 2024, compared with $373.8 billion at December 31, 2023, an increase of $329 million (0.1 percent). The increase was driven by higher residential mortgages and commercial loans, partially offset by lower commercial real estate loans and other retail loans.
Previous wording
Residential mortgages held in the loan portfolio increased $1.6 billion (1.4 percent) at June 30, 2024, compared with December 31, 2023, driven by originations. Residential mortgages originated and placed in the Company’s loan portfolio include jumbo mortgages and branch-originated first lien home equity loans to borrowers with high credit quality.
Current wording
Residential mortgages held in the loan portfolio increased $2.5 billion (2.2 percent) at September 30, 2024, compared with December 31, 2023, driven by originations. Residential mortgages originated and placed in the Company’s loan portfolio include jumbo mortgages and branch-originated first lien home equity loans to borrowers with high credit quality.
Previous wording
Commercial loans increased $3.4 billion (2.6 percent) at June 30, 2024, compared with December 31, 2023, primarily due to growth in corporate banking.
Current wording
Commercial loans increased $1.8 billion (1.3 percent) at September 30, 2024, compared with December 31, 2023, primarily due to growth in corporate banking.
Previous wording
Credit card loans increased $155 million (0.5 percent) at June 30, 2024, compared with December 31, 2023, primarily driven by higher spend volume.
Current wording
Credit card loans increased $477 million (1.7 percent) at September 30, 2024, compared with December 31, 2023, primarily driven by higher spend volume.
Previous wording
Commercial real estate loans decreased $1.6 billion (2.9 percent) at June 30, 2024, compared with December 31, 2023, primarily due to payoffs exceeding a reduced level of new originations.
Current wording
Commercial real estate loans decreased $2.8 billion (5.3 percent) at September 30, 2024, compared with December 31, 2023, primarily due to payoffs exceeding a reduced level of new originations.
Previous wording
Other retail loans decreased $1.3 billion (2.9 percent) at June 30, 2024, compared with December 31, 2023, primarily due to a decrease in auto loans.
Current wording
Other retail loans decreased $1.6 billion (3.5 percent) at September 30, 2024, compared with December 31, 2023, primarily due to a decrease in auto loans.
Previous wording
Loans Held for Sale Loans held for sale, consisting primarily of residential mortgages to be sold in the secondary market, were $2.6 billion at June 30, 2024, compared with $2.2 billion at December 31, 2023. The increase in loans held for sale was principally due to a higher level of mortgage loan closings in the second quarter of 2024, compared with the fourth quarter of 2023. Almost all of the residential mortgage loans the
Current wording
Loans Held for Sale Loans held for sale, consisting primarily of residential mortgages to be sold in the secondary market, were $3.2 billion at September 30, 2024, compared with $2.2 billion at December 31, 2023. The increase in loans held for sale was principally due to a higher level of mortgage loan closings in the third quarter of 2024, compared with the fourth
Previous wording
Company originates or purchases for sale follow guidelines that allow the loans to be sold into existing, highly liquid secondary markets, in particular in government agency transactions and to government-sponsored enterprises (“GSEs”).
Current wording
quarter of 2023. Almost all of the residential mortgage loans the Company originates or purchases for sale follow guidelines that allow the loans to be sold into existing, highly liquid secondary markets, in particular in government agency transactions and to government-sponsored enterprises (“GSEs”).
Previous wording
Investment Securities Investment securities totaled $161.3 billion at June 30, 2024, compared with $153.8 billion at December 31, 2023. The $7.5 billion (4.9 percent) increase was primarily due to $7.6 billion of net investment purchases driven by balance sheet positioning and liquidity management, partially offset by a $214 million unfavorable change in net unrealized gains (losses) on available-for-sale investment securities.
Current wording
Investment Securities Investment securities totaled $161.7 billion at September 30, 2024, compared with $153.8 billion at December 31, 2023. The $8.0 billion (5.2 percent) increase was primarily due to net investment purchases driven by balance sheet positioning and liquidity management, along with a $1.2 billion favorable change in net unrealized gains (losses) on available-for-sale investment securities.
Previous wording
The Company’s available-for-sale investment securities are carried at fair value with changes in fair value reflected in other comprehensive income (loss) unless a portion of a security’s unrealized loss is related to credit and an allowance for credit losses is necessary. At June 30, 2024, the Company’s net unrealized losses on available-for-sale investment securities were $7.1 billion ($5.3 billion net-of-tax), compared with $6.9 billion ($5.2 billion net-of-tax) at December 31, 2023. The unfavorable change in net unrealized gains (losses) was primarily due to decreases in the fair value of state and political subdivisions securities as a result of changes in interest rates. Gross unrealized losses on available-for-sale investment securities totaled $7.2 billion at June 30, 2024, compared with $7.1 billion at December 31, 2023. When evaluating credit losses, the Company considers various factors such as the nature of the investment security, the credit ratings or financial condition of the issuer, the extent of the unrealized loss, expected cash flows of the underlying collateral, the existence of any government or agency guarantees, and market conditions. At June 30, 2024, the Company had no plans to sell securities with unrealized losses, and believed it was more likely than not that it would not be required to sell such securities before recovery of their amortized cost.
Current wording
The Company’s available-for-sale investment securities are carried at fair value with changes in fair value reflected in other comprehensive income (loss) unless a portion of a security’s unrealized loss is related to credit and an allowance for credit losses is necessary. At September 30, 2024, the Company’s net unrealized losses on available-for-sale investment securities were $5.7 billion ($4.3 billion net-of-tax), compared with $6.9 billion ($5.2 billion net-of-tax) at December 31, 2023. The favorable change in net unrealized gains (losses) was primarily due to increases in the fair value of mortgage-backed securities as a result of changes in interest rates. Gross unrealized losses on available-for-sale investment securities totaled $5.9 billion at September 30, 2024, compared with $7.1 billion at December 31, 2023. When evaluating credit losses, the Company considers various factors such as the nature of the investment security, the credit ratings or financial condition of the issuer, the extent of the unrealized loss, expected cash flows of the underlying collateral, the existence of any government or agency guarantees, and market conditions. At September 30, 2024, the Company had no plans to sell securities with unrealized losses, and believed it was more likely than not that it would not be required to sell such securities before recovery of their amortized cost.
Previous wording
(d)Amortized cost excludes portfolio level basis adjustments of $60 million at June 30, 2024 and $335 million at December 31, 2023.
Current wording
(d)Amortized cost excludes portfolio level basis adjustments of $525 million at September 30, 2024 and $335 million at December 31, 2023.
Previous wording
Deposits Total deposits were $523.8 billion at June 30, 2024, compared with $512.3 billion at December 31, 2023. The $11.5 billion (2.2 percent) increase in total deposits reflected increases in total savings deposits and time deposits, partially offset by a decrease in noninterest-bearing deposits. Money market deposit balances increased $16.3 billion (8.2 percent), primarily due to higher Wealth, Corporate, Commercial and Institutional Banking, and Consumer and Business Banking balances. Savings account balances decreased $5.5 billion (12.7 percent), driven by lower Consumer and Business Banking balances. Interest checking balances decreased $1.2 billion (1.0 percent), primarily due to lower Consumer and Business Banking balances, partially offset by higher Wealth, Corporate, Commercial and Institutional Banking balances. Time deposits increased $5.0 billion (9.6 percent) at June 30, 2024, compared with December 31, 2023, driven by higher Consumer and Business Banking balances. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics. Noninterest-bearing deposits decreased $3.2 billion (3.6 percent) at June 30, 2024, compared with December 31, 2023, primarily driven by decreases within Wealth, Corporate, Commercial and Institutional Banking, and Consumer and Business Banking balances due to the impact of higher interest rates.
Current wording
Deposits Total deposits were $521.1 billion at September 30, 2024, compared with $512.3 billion at December 31, 2023. The $8.8 billion (1.7 percent) increase in total deposits reflected increases in time deposits and total savings deposits, partially offset by a decrease in noninterest-bearing deposits. Time deposits increased $7.1 billion (13.5 percent) at September 30, 2024, compared with December 31, 2023, driven by higher Consumer and Business Banking balances. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics. Money market deposit balances increased $11.6 billion (5.8 percent), primarily due to higher Consumer and Business Banking, and Wealth, Corporate, Commercial and Institutional Banking balances. Savings account balances decreased $6.2 billion (14.3 percent), driven by lower Consumer and Business Banking balances. Interest checking balances decreased $485 million (0.4 percent), primarily due to lower Consumer and Business Banking balances, partially offset by higher Wealth, Corporate, Commercial and Institutional Banking balances. Noninterest-bearing deposits decreased $3.2 billion (3.5 percent) at September 30, 2024, compared with December 31, 2023, primarily driven by a decrease in Wealth, Corporate, Commercial and Institutional Banking balances due to the impact of higher interest rates.
Previous wording
Borrowings The Company utilizes both short-term and long-term borrowings as part of its asset/liability management and funding strategies. Short-term borrowings, which include federal funds purchased, commercial paper, repurchase agreements, borrowings secured by high-grade assets and other short-term borrowings, were $16.6 billion at June 30,
Current wording
Borrowings The Company utilizes both short-term and long-term borrowings as part of its asset/liability management and funding strategies. Short-term borrowings, which include federal funds purchased, commercial paper, repurchase agreements, borrowings secured by high-grade assets and other short-term borrowings, were $23.7 billion at
Previous wording
2024, compared with $15.3 billion at December 31, 2023. The $1.3 billion (8.4 percent) increase in short-term borrowings was primarily due to an increase in repurchase agreement balances, partially offset by lower commercial paper balances. Long-term debt was $52.7 billion at June 30, 2024, compared with $51.5 billion at December 31, 2023. The $1.2 billion (2.4 percent) increase was primarily due to $4.9 billion of medium-term note issuances, partially offset by $3.4 billion of medium-term note repayments. Refer to the “Liquidity Risk Management” section for discussion of liquidity management of the Company.
Current wording
September 30, 2024, compared with $15.3 billion at December 31, 2023. The $8.4 billion (55.2 percent) increase in short-term borrowings was primarily due to increases in short-term Federal Home Loan Bank (“FHLB”) advances and repurchase agreement balances, partially offset by lower commercial paper balances. Long-term debt was $54.8 billion at September 30, 2024, compared with $51.5 billion at December 31, 2023. The $3.4 billion (6.5 percent) increase was primarily due to $6.1 billion of medium-term note issuances and a $2.5 billion increase in FHLB advances, partially offset by $4.6 billion of medium-term note and $1.0 billion of subordinated note repayments. Refer to the “Liquidity Risk Management” section for discussion of liquidity management of the Company.
Previous wording
The Executive Risk Committee (“ERC”), which is chaired by the Chief Risk Officer and includes the Chief Executive Officer and other members of the executive management team, oversees execution against the risk management framework and risk appetite statements. The ERC focuses on current and emerging risks, including strategic and reputation
Current wording
The Executive Risk Committee (“ERC”), which is chaired by the Chief Risk Officer and includes the Chief Executive Officer and other members of the executive management
Previous wording
risks, by directing timely and comprehensive actions. Senior operating committees have also been established, each responsible for overseeing a specified category of risk.
Current wording
team, oversees execution against the risk management framework and risk appetite statements. The ERC focuses on current and emerging risks, including strategic and reputation risks, by directing timely and comprehensive actions. Senior operating committees have also been established, each responsible for overseeing a specified category of risk.
Previous wording
The Company’s Board and management-level governance committees are supported by a “three lines of defense” model for establishing effective checks and balances. The first line of defense, the business lines, manages risks in conformity with established limits and policy requirements. In turn, business line leaders and their risk officers establish programs to ensure conformity with these limits and policy requirements. The second line of defense, which includes the Chief Risk Officer’s organization as well as policy and oversight activities of corporate support functions, translates risk appetite and strategy into actionable risk limits and policies. The second line of defense monitors first line of defense conformity with limits and policies and provides reporting and escalation of emerging risks and other concerns to senior management and the Risk Management Committee of the Board of Directors. The third line of defense, internal audit, is responsible for
Current wording
The Company’s Board and management-level governance committees are supported by a “three lines of defense” model for establishing effective checks and balances. The first line of defense, the business lines, manages risks in conformity with established limits and policy requirements. In turn, business line leaders and their risk officers establish programs to ensure conformity with these limits and policy requirements. The second line of defense, which includes the Chief Risk Officer’s organization as well as policy and oversight activities of corporate support functions, translates risk appetite and strategy into actionable risk limits and policies. The second line of defense monitors first line of defense conformity with limits and policies and provides reporting and escalation of
Previous wording
providing the Audit Committee of the Board of Directors and senior management with independent assessment and assurance regarding the effectiveness of the Company’s governance, risk management and control processes.
Current wording
emerging risks and other concerns to senior management and the Risk Management Committee of the Board of Directors. The third line of defense, internal audit, is responsible for providing the Audit Committee of the Board of Directors and senior management with independent assessment and assurance regarding the effectiveness of the Company’s governance, risk management and control processes.
Previous wording
In addition, credit quality ratings, as defined by the Company, are an important part of the Company’s overall credit risk management and evaluation of its allowance for credit losses. Loans with a pass rating represent those loans not classified on the Company’s rating scale for problem
Current wording
In addition, credit quality ratings, as defined by the Company, are an important part of the Company’s overall
Previous wording
credits, as minimal credit risk has been identified. Loans with a special mention or classified rating, including consumer lending and small business loans that are 90 days or more past due and still accruing, nonaccrual loans and loans in a junior lien position that are current but are behind a first lien position on nonaccrual, encompass all loans held by the Company that it considers to have a potential or well-defined weakness that may put full collection of contractual cash flows at risk. The Company’s internal credit quality ratings for consumer loans are primarily based on delinquency and nonperforming status. Refer to Note 4 in the Notes to Consolidated Financial Statements for further discussion of the Company’s loan portfolios including internal credit quality ratings. In addition, refer to “Management’s Discussion and Analysis — Credit Risk Management” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, for a more detailed discussion on credit risk management processes.
Current wording
credit risk management and evaluation of its allowance for credit losses. Loans with a pass rating represent those loans not classified on the Company’s rating scale for problem credits, as minimal credit risk has been identified. Loans with a special mention or classified rating (defined by internally assessed rating or exception based monitoring credits in consumer lending and small business loans that are 90 days or more past due and still accruing, nonaccrual loans and loans in a junior lien position that are current but are behind a first lien position on nonaccrual), encompass all loans held by the Company that it considers to have a potential or well-defined weakness that may put full collection of contractual cash flows at risk. The Company’s internal credit quality ratings for consumer loans are primarily based on delinquency and nonperforming status. Refer to Note 4 in the Notes to Consolidated Financial Statements for further discussion of the Company’s loan portfolios including internal credit quality ratings. In addition, refer to “Management’s Discussion and Analysis — Credit Risk Management” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, for a more detailed discussion on credit risk management processes.
Previous wording
The Company manages its credit risk, in part, through diversification of its loan portfolio which is achieved through limit setting by product type criteria, such as industry, and identification of credit concentrations. The Company categorizes its loan portfolio into two segments, which is the level at which it develops and documents a systematic methodology to determine the allowance for credit losses. The Company’s two loan portfolio segments are commercial lending and consumer lending.
Current wording
The Company manages its credit risk, in part, through diversification of its loan portfolio which is achieved through limit setting by product type criteria, such as industry, geography and identification of credit concentrations. The Company categorizes its loan portfolio into two segments, which is the level at which it develops and documents a systematic methodology to determine the allowance for credit losses. The Company’s two loan portfolio segments are commercial lending and consumer lending.
Previous wording
The consumer lending segment represents loans and leases made to consumer customers, including residential mortgages, credit card loans, and other retail loans such as revolving consumer lines, auto loans and leases and home equity loans and lines. Key risk characteristics relevant to consumer lending segment loans primarily relate to the borrowers’ capacity and willingness to repay and include unemployment rates, consumer bankruptcy filings, household debt levels, real disposable income and other macroeconomic factors, customer payment history and credit scores, effect of higher interest rates on variable rate or adjustable rate loans, and in some cases, updated loan-to-value (“LTV”) information reflecting current market conditions on secured loans. These and other risk characteristics are reflected in forecasts of delinquency levels, bankruptcies and losses which are the
Current wording
The consumer lending segment represents loans and leases made to consumer customers, including residential mortgages, credit card loans, and other retail loans such as revolving consumer lines, auto loans and leases and home equity loans and lines. Key risk characteristics relevant to consumer lending segment loans primarily relate to the borrowers’ capacity and willingness to repay and include unemployment rates, consumer bankruptcy filings, household debt levels, real disposable income and other macroeconomic factors, customer payment history and credit scores, effect of higher interest rates on variable rate or adjustable rate loans, and in some cases, updated loan-to-value (“LTV”) information
Previous wording
Accruing loans 90 days or more past due totaled $701 million at June 30, 2024, compared with $698 million at December 31, 2023. Accruing loans 90 days or more past due are not included in nonperforming assets and continue to accrue interest because they are adequately secured by collateral, are in the process of collection and are reasonably expected to result in repayment or restoration to current status, or are managed in homogeneous portfolios with specified charge-off timeframes adhering to regulatory guidelines. The ratio of accruing loans 90 days or more past due to total loans was 0.19 percent at June 30, 2024 and December 31, 2023.
Current wording
Accruing loans 90 days or more past due totaled $738 million at September 30, 2024, compared with $698 million at December 31, 2023. Accruing loans 90 days or more past due are not included in nonperforming assets and continue to accrue interest because they are adequately secured by collateral, are in the process of collection and are reasonably expected to result in repayment or restoration to current status, or are managed in homogeneous portfolios with specified charge-off timeframes adhering to regulatory guidelines. The ratio of accruing loans 90 days or more past due to total loans was 0.20 percent at September 30, 2024 and 0.19 percent at December 31, 2023.
Previous wording
(a)Delinquent loan ratios exclude $1.7 billion at June 30, 2024, and $2.0 billion at December 31, 2023, of loans purchased and loans that could be purchased from GNMA mortgage pools under delinquent loan repurchase options whose repayments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. Including these loans, the ratio of residential mortgages 90 days or more past due and nonperforming to total residential mortgages was 1.71 percent at June 30, 2024, and 2.00 percent at December 31, 2023.
Current wording
(a)Delinquent loan ratios exclude $2.0 billion at September 30, 2024 and December 31, 2023, of loans purchased and loans that could be purchased from GNMA mortgage pools under delinquent loan repurchase options whose repayments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. Including these loans, the ratio of residential mortgages 90 days or more past due and nonperforming to total residential mortgages was 1.97 percent at September 30, 2024, and 2.00 percent at December 31, 2023.
Previous wording
(a)Excludes $561 million of loans 30-89 days past due and $1.7 billion of loans 90 days or more past due at June 30, 2024, purchased and that could be purchased from GNMA mortgage pools under delinquent loan repurchase options that continue to accrue interest, compared with $595 million and $2.0 billion at December 31, 2023, respectively.
Current wording
(a)Excludes $607 million of loans 30-89 days past due and $2.0 billion of loans 90 days or more past due at September 30, 2024, purchased and that could be purchased from GNMA mortgage pools under delinquent loan repurchase options that continue to accrue interest, compared with $595 million and $2.0 billion at December 31, 2023, respectively.
Previous wording
Modified Loans In certain circumstances, the Company may modify the terms of a loan to maximize the collection of amounts due when a borrower is experiencing financial difficulties or is expected to experience difficulties in the near-term. In most cases the modification is either a concessionary reduction in interest rate, extension of the maturity date or reduction in the principal balance that would otherwise not be considered.
Current wording
Modified Loans In certain circumstances, the Company may modify the terms of a loan to maximize the collection of amounts due when a borrower is experiencing financial difficulties or is expected to experience difficulties in the near-term. In most cases the modification is either a concessionary reduction in interest rate, extension of the maturity date or other concessionary modification of loan terms that would otherwise not be considered.
Previous wording
Nonperforming Assets The level of nonperforming assets represents another indicator of the potential for future credit losses. Nonperforming assets include nonaccrual loans, modified loans not performing in accordance with modified terms and not accruing interest, modified loans that have not met the performance period required to return to accrual status, other real estate owned (“OREO”) and other nonperforming assets owned by the Company. Interest
Current wording
Nonperforming Assets The level of nonperforming assets represents another indicator of the Company’s risk within the loan portfolio. Nonperforming assets include nonaccrual loans, modified loans not performing in accordance with modified terms and not accruing interest, modified loans that have not met the performance period required to return to accrual status, other real estate owned (“OREO”) and other nonperforming assets owned by the Company. Interest
Showing the first 40 of 85 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
decreased diluted earnings per common share for the first nine months of 2024 by $0.14. The results for the first nine months of 2023 included the impact of $1.1 billion ($828 million net-of-tax) of notable items, including $838 million of merger and integration charges, and $243 million of provision for credit losses and an additional $22 million of losses related to balance sheet repositioning and capital management actions. Combined, these items decreased diluted earnings per common share for the first nine months of 2023 by $0.53.
Current report — wording carried from elsewhere
reflecting current market conditions on secured loans. These and other risk characteristics are reflected in forecasts of delinquency levels, bankruptcies and losses which are the primary factors in determining the allowance for credit losses for the consumer lending segment.
Current report — wording carried from elsewhere
the Company’s allowance for credit losses for each loan portfolio.
Current report — wording carried from elsewhere
commercial and commercial real estate portfolios, partially offset by reduced portfolio exposures.
Current report — wording carried from elsewhere
2024, compared with net losses of $448 million and $1.8 billion, respectively, in the same periods of 2023.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Net income attributable to U.S. Bancorp for the first six months of 2024 was $2.9 billion, or $1.75 per diluted common share, compared with $3.1 billion, or $1.87 per diluted common share, for the first six months of 2023. Return on
Previous report — wording carried elsewhere
primary factors in determining the allowance for credit losses for the consumer lending segment.