US BANCORP \DE\

Previous 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 first quarter of 2025, or $1.03 per diluted common share, compared with $1.3 billion, or $0.78 per diluted common share, for the first quarter of 2024. Return on average assets and return on average common equity were 1.04 percent and 12.3 percent, respectively, for the first quarter of 2025, compared with 0.81 percent and 10.0 percent, respectively, for the first quarter of 2024. The results for the first quarter of 2024 included the impact of $265 million ($199 million net-of-tax) of notable items, including $155 million of merger and integration charges associated with the acquisition of MUFG Union Bank, N.A. (“MUB”) and $110 million of incremental FDIC special assessment charges, which decreased diluted earnings per common share for the first quarter of 2024 by $0.12.

Current wording

Earnings Summary U.S. Bancorp and its subsidiaries (the “Company”) reported net income attributable to U.S. Bancorp of $1.8 billion for the second quarter of 2025, or $1.11 per diluted common share, compared with $1.6 billion, or $0.97 per diluted common share, for the second quarter of 2024. Return on average assets and return on average common equity were 1.08 percent and 12.9 percent, respectively, for the second quarter of 2025, compared with 0.97 percent and 12.4 percent, respectively, for the second quarter of 2024. The results for the second quarter of 2024 included the impact of a $26 million ($19 million net-of-tax) notable item related to an incremental FDIC special assessment charge, which decreased diluted earnings per common share for the second quarter of 2024 by $0.01.

Previous wording

The provision for credit losses for the first quarter of 2025 was $16 million (2.9 percent) lower than the first quarter of 2024, driven by improved credit quality and loan portfolio mix, which contributed to a $10 million reserve release in the first quarter of 2025. Net charge-offs in the first quarter of 2025 were $547 million, compared with $488 million in the first quarter of 2024. 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

The provision for credit losses for the second quarter of 2025 was $67 million (11.8 percent) lower than the second quarter of 2024, reflecting the impact of loan portfolio sales during the second quarter of 2025 and improved credit quality. Net charge-offs in the second quarter of 2025 were $554 million, compared with $538 million in the second quarter of 2024. 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

Total net revenue for the first quarter of 2025 was $243 million (3.6 percent) higher than the first quarter of 2024, reflecting a 2.7 percent increase in net interest income and a 5.0 percent increase in noninterest income. The increase in net interest income from the first quarter of 2024 was primarily due to the mix of earning assets, fixed asset repricing and modest loan growth, partially offset by deposit mix. The increase in noninterest income was driven by higher trust and investment management fees, payment services revenue and other noninterest income.

Current wording

Total net revenue for the first six months of 2025 was $380 million (2.8 percent) higher than the first six months of 2024, reflecting a 1.7 percent increase in net interest income and a 4.4 percent increase in noninterest income. The increase in net interest income from the first six months of 2024 was primarily due to the impact of fixed asset repricing and loan mix, partially offset by deposit mix and pricing pressures. The increase in noninterest income was driven by higher trust and investment management fees, payment services revenue and other noninterest income.

Previous wording

Noninterest expense in the first quarter of 2025 was $227 million (5.1 percent) lower than the first quarter of 2024, primarily due to the impact of merger and integration charges in the prior year and lower compensation and employee benefits expense, partially offset by higher marketing and business development expense and technology and communications expense.

Current wording

Noninterest expense in the first six months of 2025 was $260 million (3.0 percent) lower than the first six months of 2024, primarily due to the impact of merger and integration charges in the prior year and lower compensation and employee benefits expense and other intangibles expense, partially offset by higher technology and communications expense and marketing and business development expense.

Previous wording

Net Interest Income Net interest income, on a taxable-equivalent basis, was $4.1 billion in the first quarter of 2025, representing an increase of $107 million (2.7 percent) compared with the first quarter of 2024. The increase was primarily due to the mix of earning assets, fixed asset repricing and modest loan growth, partially offset by deposit mix. Average earning assets for the first quarter of 2025 were $14.1 billion (2.4 percent) higher than the first quarter of 2024, reflecting increases in investment securities, loans and other earning assets, partially offset by a decrease in interest-

Current wording

Net Interest Income Net interest income, on a taxable-equivalent basis, was $4.1 billion in the second quarter and $8.2 billion in the first six months of 2025, representing increases of $28 million (0.7 percent) and $135 million (1.7 percent), respectively, compared with the same periods of 2024. The increases were primarily due to the impact of fixed asset repricing and loan mix, partially offset by deposit mix and pricing pressures. Average earning assets for the second quarter and first six months of 2025 were $4.5 billion (0.7 percent) and $9.3 billion (1.5 percent) higher, respectively, than the same periods of 2024, reflecting increases in investment securities, loans and other earning assets, partially offset by a decrease in interest-bearing deposits with banks. The net interest margin, on a taxable-equivalent basis, in the second quarter of 2025 was 2.66 percent, compared with 2.67 percent in the second quarter of 2024. The decrease was primarily due to the impact of higher earning assets and deposit pricing pressures, partially offset by fixed asset repricing and loan mix. The net interest margin, on a taxable-equivalent basis, in the first six months of 2025 was 2.69 percent, compared with 2.68 percent in the first six months of 2024. The increase from the prior year was primarily due to improved balance sheet mix, fixed asset repricing and loan mix, partially offset by deposit mix and higher earning assets.

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bearing deposits with banks. The net interest margin, on a taxable-equivalent basis, in the first quarter of 2025 was 2.72 percent, compared with 2.70 percent in the first quarter of 2024. The increase in net interest margin from the first quarter of 2024 was primarily due to improved balance sheet mix, fixed asset repricing and modest loan growth, partially offset by deposit mix and higher earning assets. Refer to the “Consolidated Daily Average Balance Sheet and Related Yields and Rates” table for further information on net interest income.

Current wording

Refer to the “Consolidated Daily Average Balance Sheet and Related Yields and Rates” table for further information on net interest income.

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Average total loans in the first quarter of 2025 were $8.0 billion (2.1 percent) higher than the first quarter of 2024. The increase was primarily due to higher commercial loans, residential mortgages and credit card loans, partially offset by lower commercial real estate loans and other retail loans. The increase in average commercial loans was primarily due to growth in loans to financial institutions. The increase in residential mortgages was primarily driven by originations. The increase in average credit card loans was primarily driven by customer account growth and higher spend volume. The decrease in average commercial real estate loans was primarily due to loan workout activities and payoffs exceeding a reduced level of new originations. The decrease in average other retail loans was driven by lower automobile loans.

Current wording

Average total loans in the second quarter and first six months of 2025 were $3.8 billion (1.0 percent) and $5.9 billion (1.6 percent) higher, respectively, than the same periods of 2024. The increases were primarily due to higher commercial loans and credit card loans, partially offset by lower commercial real estate loans and other retail loans. The increase in average commercial loans was primarily due to growth in loans to financial institutions. The increase in average credit card loans was primarily driven by customer account growth and higher spend volume. The decrease in average commercial real estate loans was primarily due to loan workout activities and payoffs exceeding a reduced level of new originations. The decrease in average other retail loans was driven by lower automobile loans. Average residential mortgages decreased in the second quarter of 2025, compared with the second quarter of 2024, driven by a portfolio sale in the second quarter of 2025.

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Average investment securities in the first quarter of 2025 were $9.9 billion (6.2 percent) higher than the first quarter of 2024, primarily due to balance sheet positioning and liquidity management.

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Average investment securities in the second quarter and first six months of 2025 were $5.8 billion (3.5 percent) and $7.9 billion (4.8 percent) higher, respectively, than the same periods of 2024, primarily due to balance sheet repositioning.

Previous wording

Average total deposits for the first quarter of 2025 were $3.5 billion (0.7 percent) higher than the first quarter of 2024. Average total savings deposits for the first quarter of 2025 were $8.2 billion (2.3 percent) higher than the first quarter of 2024, driven by increases in Wealth, Corporate, Commercial and Institutional Banking, and Consumer and Business Banking balances. Average time deposits for the first quarter of 2025 were $358 million (0.6 percent) higher than the first quarter of 2024, mainly due to increases in Consumer and Business Banking balances, partially offset by decreases in Wealth, Corporate, Commercial and Institutional 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 first quarter of 2025 were $5.1 billion (6.0 percent) lower than the first quarter of 2024, driven by decreases in Wealth, Corporate, Commercial and Institutional Banking, and Consumer and Business Banking balances.

Current wording

Average total deposits for the second quarter and first six months of 2025 were $11.0 billion (2.1 percent) and $3.8 billion (0.7 percent) lower, respectively, than the same periods of 2024. Average noninterest-bearing deposits for the second quarter and first six months of 2025 were $4.3 billion (5.2 percent) and $4.7 billion (5.6 percent) lower, respectively, than the same periods of 2024, driven by decreases in Wealth, Corporate, Commercial and Institutional Banking, and Consumer and Business Banking balances. Average total savings deposits for the second quarter of 2025 were $6.1 billion (1.6 percent) lower than the second quarter of 2024, primarily due to a decrease in Wealth, Corporate, Commercial and Institutional Banking balances. Average total savings deposits for the first six months of 2025 were $1.0 billion (0.3 percent) higher than the first six months of 2024, driven by an increase in Wealth, Corporate, Commercial and Institutional Banking balances. Average time deposits for the second quarter and first six months of 2025 were $625 million (1.1 percent) and $130 million (0.2 percent) lower, respectively, than the same periods of 2024, mainly due to a decrease in Wealth, Corporate, Commercial and Institutional Banking

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March 31, 2025, compared with December 31, 2024, 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.

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balances, partially offset by 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.

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Noninterest Income Noninterest income was $2.8 billion in the first quarter of 2025, representing an increase of $136 million (5.0 percent) compared with the first quarter of 2024. The increase in noninterest income in the first quarter of 2025, compared with the first quarter of 2024, was primarily driven by higher trust and investment management fees, payment services revenue and other noninterest income. Trust and investment management fees increased primarily due to business growth and favorable market conditions. Payment services revenue increased primarily due to increases across all categories due to business volume growth. The increase in card revenue was partially offset by a reduction in prepaid card volumes from the prior year. Other noninterest income increased primarily due to higher tax credit investment activity and the impact of other favorable items.

Current wording

Noninterest Income Noninterest income was $2.9 billion in the second quarter and $5.8 billion in the first six months of 2025, representing increases of $109 million (3.9 percent) and $245 million (4.4 percent), respectively, compared with the same periods of 2024. The increases from the prior year reflected higher trust and investment management fees, payment services revenue and other noninterest income, partially offset by lower mortgage banking revenue. Trust and investment management fees increased primarily due to favorable market conditions and business growth. Payment services revenue increased primarily due to increases in merchant processing services revenue due to favorable rates and card revenue mainly due to higher sales volume. Other noninterest income increased primarily due to higher tax credit investment activity. Mortgage banking revenue decreased primarily due to a gain on the sale of mortgage servicing rights in the second quarter of 2024.

Previous wording

million (5.1 percent) from the first quarter of 2024. The decrease in noninterest expense reflected the impact of merger and integration charges in the prior year, along with lower compensation and employee benefits expense and lower other noninterest expense, partially offset by higher marketing and business development expense and higher technology and communications expense. Compensation and employee benefits expense decreased primarily due to cost savings from operational efficiencies, partially offset by merit increases. Other noninterest expense decreased primarily due to the impact of the FDIC special assessment in the prior year. Marketing and business development expense increased primarily due to a higher charitable foundation contribution. Technology and communications expense increased primarily due to investments in infrastructure and technology development.

Current wording

Noninterest Expense Noninterest expense was $4.2 billion in the second quarter and $8.4 billion in the first six months of 2025, representing decreases of $33 million (0.8 percent) and $260 million (3.0 percent), respectively, from the same periods of 2024. The decreases from the prior year reflected lower compensation and employee benefits expense, other intangibles expense and net occupancy and equipment expense, partially offset by higher technology and communications expense. Noninterest expense further decreased in the first six months of 2025, compared with the first six months of 2024, due to the impacts in the prior year of merger and integration charges and the FDIC special assessment, partially offset by higher marketing and business development expense in the first six months of 2025. Compensation and employee benefits expense decreased primarily due to cost savings from operational efficiencies, partially offset by merit increases. Net occupancy and equipment expense decreased due to cost savings from

Previous wording

Income Tax Expense The provision for income taxes was $443 million (an effective rate of 20.5 percent) for the first quarter of 2025, compared with $347 million (an effective rate of 20.7 percent) for the first quarter of 2024. 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 $472 million (an effective rate of 20.6 percent) for the second quarter and $915 million (an effective rate of 20.6 percent) for the first six months of 2025, compared with $445 million (an effective rate of 21.6 percent) and $792 million (an effective rate of 21.2 percent) for the same periods of 2024, respectively. 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 $381.8 billion at March 31, 2025, compared with $379.8 billion at December 31, 2024, an increase of $2.0 billion (0.5 percent). The increase was driven by higher commercial loans, partially offset by lower credit card loans and other retail loans.

Current wording

Loans The Company’s loan portfolio was $380.2 billion at June 30, 2025, compared with $379.8 billion at December 31, 2024, an increase of $411 million (0.1 percent). The increase was driven by higher commercial loans, partially offset by lower residential mortgages and other retail loans.

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Commercial loans increased $4.6 billion (3.3 percent) at March 31, 2025, compared with December 31, 2024, primarily due to growth in loans to financial institutions.

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Commercial loans increased $7.9 billion (5.7 percent) at June 30, 2025, compared with December 31, 2024, primarily due to growth in loans to financial institutions.

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Residential mortgages held in the loan portfolio increased $94 million (0.1 percent) at March 31, 2025, compared with December 31, 2024, 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 decreased $4.3 billion (3.7 percent) at June 30, 2025, compared with December 31, 2024, driven by a portfolio sale in the second quarter of 2025. 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

Other retail loans decreased $1.1 billion (2.5 percent) at March 31, 2025, compared with December 31, 2024, primarily due to a decrease in automobile loans.

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Other retail loans decreased $2.2 billion (5.1 percent) at June 30, 2025, compared with December 31, 2024, primarily due to a decrease in automobile loans, including the impact of a portfolio sale during the second quarter of 2025.

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Commercial real estate loans decreased $525 million (1.1 percent) at March 31, 2025, compared with December 31, 2024, primarily due to loan workout activities and payoffs exceeding a reduced level of new originations.

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Commercial real estate loans decreased $678 million (1.4 percent) at June 30, 2025, compared with December 31, 2024, primarily due to loan workout activities and payoffs exceeding a reduced level of new originations.

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Credit card loans decreased $1.1 billion (3.7 percent) at March 31, 2025, compared with December 31, 2024, primarily the result of customers seasonally paying down balances.

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Credit card loans decreased $327 million (1.1 percent) at June 30, 2025, compared with December 31, 2024, primarily as the result of customers seasonally paying down balances.

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Loans Held for Sale Loans held for sale, consisting primarily of residential mortgages to be sold in the secondary market, were $1.7 billion at March 31, 2025, compared with $2.6 billion at December 31, 2024. The decrease in loans held for sale was principally due to a lower level of mortgage loan closings

Current wording

Loans Held for Sale Loans held for sale, consisting primarily of residential mortgages to be sold in the secondary market, were $2.3 billion at June 30, 2025, compared with $2.6 billion at December 31, 2024. Almost all of the residential mortgage loans the Company originates or purchases for sale follow

Previous wording

in the first quarter of 2025, compared with the fourth quarter of 2024. 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”).

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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”).

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Investment Securities Investment securities totaled $164.8 billion at March 31, 2025, compared with $164.6 billion at December 31, 2024. The $156 million (0.1 percent) increase was primarily due to a $508 million favorable change in net unrealized gains (losses) on available-for-sale investment securities, partially offset by net investment securities sales driven by balance sheet positioning and liquidity management.

Current wording

Investment Securities Investment securities totaled $168.5 billion at June 30, 2025, compared with $164.6 billion at December 31, 2024. The $3.8 billion (2.3 percent) increase was primarily due to net investment securities purchases driven by balance sheet positioning, along with a $763 million favorable change in net unrealized gains (losses) on available-for-sale investment securities.

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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 March 31, 2025, the Company’s net unrealized losses on available-for-sale investment securities were $6.3 billion ($4.7 billion net-of-tax), compared with net unrealized losses of $6.8 billion ($5.1 billion net-of-tax) at December 31, 2024. The favorable change in net unrealized gains (losses) was primarily due to increases in the fair value of U.S. treasury and mortgage-backed securities as a result of changes in interest rates. Gross unrealized losses on available-for-sale investment securities totaled $6.4 billion at March 31, 2025, compared with $6.9 billion at December 31, 2024. 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 March 31, 2025, 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 June 30, 2025, the Company’s net unrealized losses on available-for-sale investment securities were $6.0 billion ($4.5 billion net-of-tax), compared with net unrealized losses of $6.8 billion ($5.1 billion net-of-tax) at December 31, 2024. The favorable change in net unrealized gains (losses) was primarily due to increases in the fair value of U.S. treasury and mortgage-backed securities as a result of changes in interest rates. Gross unrealized losses on available-for-sale investment securities totaled $6.2 billion at June 30, 2025, compared with $6.9 billion at December 31, 2024. 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, 2025, 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.

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(d)Amortized cost excludes portfolio level basis adjustments of $204 million at March 31, 2025 and $13 million at December 31, 2024.

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(d)Amortized cost excludes portfolio level basis adjustments of $314 million at June 30, 2025 and $13 million at December 31, 2024.

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Deposits Total deposits were $512.5 billion at March 31, 2025, compared with $518.3 billion at December 31, 2024. The $5.8 billion (1.1 percent) decrease in total deposits reflected decreases in total savings deposits and noninterest-bearing deposits, partially offset by an increase in time deposits. Money market deposit balances decreased $21.1 billion (10.2 percent), primarily due to lower Wealth, Corporate, Commercial and Institutional Banking, and Consumer and Business Banking balances. Savings account balances increased $10.0 billion (22.0 percent), driven by higher Consumer and Business Banking balances. Interest checking balances increased $4.9 billion (3.8 percent), primarily due to higher Wealth, Corporate, Commercial and Institutional Banking, and Consumer and Business Banking balances. Noninterest-bearing deposits decreased $72 million (0.1 percent) at March 31, 2025, compared with December 31, 2024, primarily driven by a decrease in Wealth, Corporate, Commercial and Institutional Banking balances, partially offset by an increase in Consumer and Business Banking balances. Time deposits increased $476 million (0.9 percent) at

Current wording

Deposits Total deposits were $518.7 billion at June 30, 2025, compared with $518.3 billion at December 31, 2024. The $408 million (0.1 percent) increase in total deposits reflected increases in noninterest-bearing deposits and time deposits, partially offset by a decrease in total savings deposits. Noninterest-bearing deposits increased $2.8 billion (3.3 percent) at June 30, 2025, compared with December 31, 2024, primarily driven by an increase in Wealth, Corporate, Commercial and Institutional Banking balances. Time deposits increased $2.1 billion (3.9 percent) at June 30, 2025, compared with December 31, 2024, driven by higher Consumer and Business Banking balances, partially offset by lower Wealth, Corporate, Commercial and Institutional 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 decreased $25.7 billion (12.4 percent), primarily due to lower Consumer and Business Banking, and Wealth, Corporate, Commercial and Institutional Banking balances. Savings account balances increased $15.5 billion (34.1 percent), driven by higher Consumer and Business Banking balances. Interest checking balances increased $5.7 billion (4.5 percent), primarily due to higher Wealth, Corporate, Commercial and Institutional Banking balances.

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 $17.2 billion at March 31, 2025, compared with $15.5 billion at December 31, 2024. The $1.6 billion (10.6 percent) increase in short-term borrowings was primarily due to increases in repurchase agreement balances, partially offset by a decrease in short-term Federal Home Loan Bank (“FHLB”) advances. Long-term debt was $59.9 billion at March 31, 2025, compared with $58.0 billion at December 31, 2024. The $1.9 billion (3.2 percent) increase was primarily due to $3.0 billion of medium-term note and $625 million of credit-linked bank note issuances, partially offset by $2.0 billion of bank note repayments. Refer to the “Liquidity Risk Management” section for discussion of liquidity management of the Company.

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 $15.0 billion at June 30, 2025, compared with $15.5 billion at December 31, 2024. The $479 million (3.1 percent) decrease in short-term borrowings was primarily due to decreases in short-term Federal Home Loan Bank (“FHLB”) advances, commercial paper and repurchase agreement balances, partially offset by higher other short-term borrowing balances. Long-term debt was $64.0 billion at June 30, 2025, compared with $58.0 billion at December 31, 2024. The $6.0 billion (10.4 percent) increase was primarily due to $4.7 billion of medium-term note issuances, a $2.0 billion increase in FHLB advances, $1.9 billion of bank note issuances and $625 million of credit-linked bank note issuances, partially offset by $2.1 billion of bank note and $1.5 billion of medium-term note repayments and maturities. Refer to the “Liquidity Risk Management” section for discussion of liquidity management of the Company.

Previous wording

The Company’s most prominent risk exposures are credit, interest rate, market, liquidity, operational, compliance, strategic, and reputation. Credit risk is the risk of loss associated with a change in the credit profile or the failure of a borrower or counterparty to meet its contractual obligations. Interest rate risk is the current or prospective risk to earnings and capital, or market valuations, arising from the impact of changes in interest rates. Market risk is the risk associated with fluctuations in interest rates, foreign exchange rates, commodities and credit spreads that may result in changes in the values of financial instruments, such as trading and available-for-sale investment securities, mortgage loans held for sale (“MLHFS”), mortgage servicing rights (“MSRs”) and derivatives that are accounted for on a fair value basis. Liquidity risk is the risk that financial condition or overall safety and soundness is adversely affected by the Company’s inability, or perceived inability, to meet its cash flow obligations in a timely and complete manner in either normal or stressed conditions. Operational risk is the risk to current or projected financial condition and resilience arising from inadequate or failed internal processes or systems, people (including human errors or misconduct), or adverse external events, including the risk of loss resulting from breaches in data security. Operational risk can also include the risk of loss due to failures by third parties with which the Company does business. Compliance risk is the risk that the Company may suffer legal or regulatory sanctions, financial losses, and reputational damage if it fails to adhere to compliance requirements and the Company’s compliance policies. Strategic risk is the risk to current or projected financial condition and resilience arising from adverse business decisions, poor implementation of business decisions, or lack of responsiveness to changes in the banking industry and operating environment. Reputation risk is the risk to current or projected financial condition and resilience arising from negative public opinion. This risk may impair the Company’s competitiveness by affecting its ability to establish new relationships or services, or continue servicing existing

Current wording

The Company’s most prominent risk exposures are credit, interest rate, market, liquidity, operational, compliance, strategic, and reputation. Credit risk is the risk of loss associated with a change in the credit profile or the failure of a borrower or counterparty to meet its contractual obligations. Interest rate risk is the current or prospective risk to earnings and capital, arising from the impact of changes in interest rates. Market risk is the risk associated with fluctuations in interest rates, foreign exchange rates, commodities and credit spreads that may result in changes in the values of financial instruments, such as trading and available-for-sale investment securities, mortgage loans held for sale (“MLHFS”), mortgage servicing rights (“MSRs”) and derivatives that are accounted for on a fair value basis. Liquidity risk is the risk that financial condition or overall safety and soundness is adversely affected by the Company’s inability, or perceived inability, to meet its cash flow obligations in a timely and complete manner in either normal or stressed conditions. Operational risk is the risk to current or projected financial condition and resilience arising from inadequate or failed internal processes or systems, people (including human errors or misconduct), or adverse external events, including the risk of loss resulting from breaches in data security. Operational risk can also include the risk of loss due to failures by third parties with which the Company does business. Compliance risk is the risk that the Company may suffer legal or regulatory sanctions, financial losses, and reputational damage if it fails to adhere to compliance requirements and the Company’s compliance policies. Strategic risk is the risk to current or projected financial condition and resilience arising from adverse business decisions, poor implementation of business decisions, or lack of responsiveness to changes in the banking industry and operating environment. Reputation risk is the risk to current or projected financial condition and resilience arising from negative public opinion. This risk may impair the Company’s competitiveness by affecting its ability to establish new relationships or services, or continue servicing existing relationships. In addition to the risks

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relationships. In addition to the risks identified above, other risk factors exist that may impact the Company. Refer to “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, for a detailed discussion of these factors.

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identified above, other risk factors exist that may impact the Company. Refer to “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, for a detailed discussion of these factors.

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 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, 2024, for a more detailed discussion on credit risk management processes.

Current 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 credits, as minimal credit risk has been identified. Loans with a special mention or classified rating encompass all loans held by the Company that it considers having a potential or well-defined weakness that may put full collection of contractual cash flows at risk. These are defined by individually graded credit quality ratings for larger corporate loans or scored based credit quality ratings in consumer lending and small business loans. Scored based credits classified as problem credits are typically 90 days or more past due and still accruing, nonaccrual loans or loans in a junior lien position that are current but are behind a first lien position on nonaccrual. 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, 2024, for a more detailed discussion on credit risk management processes.

Previous wording

The commercial lending segment includes loans and leases made to small business, middle market, large corporate, commercial real estate, financial institution, non-profit and public sector customers. Key risk characteristics relevant to commercial lending segment loans include the industry and geography of the borrower’s business, purpose of the loan, repayment source, borrower’s debt capacity and financial flexibility, loan covenants, and nature of pledged collateral, if any, as well as macroeconomic factors such as unemployment rates, gross domestic product levels, corporate bond spreads and long-term interest rates. These risk

Current wording

The commercial lending segment includes loans and leases made to small business, middle market, large corporate, commercial real estate, financial institution, non-profit and public sector customers. Key risk characteristics relevant to commercial lending segment loans include the industry and geography of the borrower’s business, purpose of the loan, repayment source, borrower’s debt capacity and financial flexibility, loan covenants, and nature of pledged collateral, if any, as well as macroeconomic factors such as unemployment rates, gross domestic product levels, corporate bond spreads and long-term interest rates. These risk characteristics, among others, are considered in determining

Previous wording

characteristics, among others, are considered in determining estimates about the likelihood of default by the borrowers and the severity of loss in the event of default. The Company considers these risk characteristics in assigning internal risk ratings to, or forecasting losses on, these loans, which are the significant factors in determining the allowance for credit losses for loans in the commercial lending segment.

Current wording

estimates about the likelihood of default by the borrowers and the severity of loss in the event of default. The Company considers these risk characteristics in assigning internal risk ratings to, or forecasting losses on, these loans, which are the significant factors in determining the allowance for credit losses for loans in the commercial lending segment.

Previous wording

The Company estimates updated LTV information on its outstanding residential mortgages quarterly, based on a method that combines automated valuation model updates and relevant home price indices. LTV is the ratio of the loan’s outstanding principal balance to the current estimate of property value. For home equity and second mortgages, combined loan-to-value (“CLTV”) is the combination of the first mortgage original principal balance and the second lien

Current wording

The Company estimates updated LTV information on its outstanding residential mortgages quarterly, based on a method that combines automated valuation model updates and relevant home price indices. LTV is the ratio of the loan’s outstanding principal balance to the current estimate of property value. For home equity and second mortgages, combined loan-to-value (“CLTV”) is the combination of the first mortgage original principal balance and the second lien outstanding principal balance, relative to the current estimate

Previous wording

outstanding principal balance, relative to the current estimate of property value. Certain loans do not have an LTV or CLTV, primarily due to lack of availability of relevant automated valuation model and/or home price indices values, or lack of necessary valuation data on acquired loans.

Current wording

of property value. Certain loans do not have an LTV or CLTV, primarily due to lack of availability of relevant automated valuation model and/or home price indices values, or lack of necessary valuation data on acquired loans.

Previous wording

Accruing loans 90 days or more past due totaled $796 million at March 31, 2025, compared with $810 million at December 31, 2024. 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 0.21 percent at March 31, 2025 and December 31, 2024.

Current wording

Accruing loans 90 days or more past due totaled $966 million at June 30, 2025, compared with $810 million at December 31, 2024. 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 0.25 percent at June 30, 2025, compared with 0.21 percent at December 31, 2024. Accruing loans 90 days or more past due include loan delinquencies of borrowers impacted by the Los Angeles area wildfires.

Previous wording

(a)Delinquent loan ratios exclude $2.5 billion at March 31, 2025, and $2.3 billion at December 31, 2024, 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 2.40 percent at March 31, 2025, and 2.28 percent at December 31, 2024.

Current wording

(a)Delinquent loan ratios exclude $2.2 billion at June 30, 2025, and $2.3 billion at December 31, 2024, 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 2.31 percent at June 30, 2025, and 2.28 percent at December 31, 2024.

Previous wording

(a)Excludes $512 million of loans 30-89 days past due and $2.5 billion of loans 90 days or more past due at March 31, 2025, purchased and that could be purchased from GNMA mortgage pools under delinquent loan repurchase options that continue to accrue interest, compared with $660 million and $2.3 billion at December 31, 2024, respectively.

Current wording

(a)Excludes $558 million of loans 30-89 days past due and $2.2 billion of loans 90 days or more past due at June 30, 2025, purchased and that could be purchased from GNMA mortgage pools under delinquent loan repurchase options that continue to accrue interest, compared with $660 million and $2.3 billion at December 31, 2024, respectively.

Previous wording

(c)Includes revolving credit, installment and automobile loans.

Current wording

(b)Includes revolving credit, installment and automobile loans.

Previous wording

The Company continues to work with borrowers who are experiencing financial difficulties to modify their loans. Many of the Company’s loan modifications are determined on a case-by-case basis in connection with ongoing loan collection processes. The modifications vary within each of the Company’s loan classes. Commercial lending segment modifications generally include extensions of the maturity date and may be accompanied by an increase or decrease to the interest rate. The Company may also work with the borrower to

Current wording

The Company continues to work with borrowers who are experiencing financial difficulties to modify their loans. Many of the Company’s loan modifications are determined on a case-by-case basis in connection with ongoing loan collection processes. The modifications vary within each of the Company’s loan classes. Commercial lending segment modifications generally include extensions of the maturity date and may be accompanied by an increase or decrease to the interest rate. The Company may also work with the borrower to make other changes to the loan to mitigate losses, such as

Previous wording

make other changes to the loan to mitigate losses, such as obtaining additional collateral and/or guarantees to support the loan.

Current wording

obtaining additional collateral and/or guarantees to support the loan.

Previous wording

Credit card and other retail loan modifications are generally part of distinct modification programs providing customers modification solutions over a specified time period, generally up to 60 months.

Current wording

Credit card and other retail loan modifications generally are part of distinct modification programs providing customers