US BANCORP \DE\

Overview

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.

Total net revenue for the second quarter of 2025 was $137 million (2.0 percent) higher than the second quarter of 2024, reflecting a 0.7 percent increase in net interest income and a 3.9 percent increase in noninterest income. The increase in net interest income from the second quarter 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, partially offset by lower mortgage banking revenue.

Noninterest expense in the second quarter of 2025 was $33 million (0.8 percent) lower than the second quarter of 2024, primarily due to lower compensation and employee benefits expense and other intangibles expense, partially offset by higher technology and communications expense.

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.

Net income attributable to U.S. Bancorp for the first six months of 2025 was $3.5 billion, or $2.14 per diluted common share, compared with $2.9 billion, or $1.75 per diluted common share, for the first six months of 2024. Return on average assets and return on average common equity were 1.06 percent and 12.6 percent, respectively, for the first six months of 2025, compared with 0.89 percent and 11.2 percent, respectively, for the first six months of 2024. 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 associated with the acquisition of MUFG Union Bank, N.A. (“MUB”) and $136 million related to incremental FDIC special assessment charges. Combined, these items decreased

diluted earnings per common share for the first six months of 2024 by $0.14.

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.

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.

The provision for credit losses for the first six months of 2025 was $83 million (7.4 percent) lower than the first six months of 2024, reflecting the impact of loan portfolio sales during the second quarter of 2025 and improved credit quality. Net charge-offs in the first six months of 2025 were $1.1 billion, compared with $1.0 billion in the first six months 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.

Statement of Income Analysis

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.

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

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.

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.

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

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.

Provision for Credit Losses The provision for credit losses was $501 million in the second quarter and $1.0 billion in the first six months of 2025, representing decreases of $67 million (11.8 percent) and $83 million (7.4 percent), respectively, from the same periods of 2024, primarily driven by the impact of loan portfolio sales during the second quarter of 2025 and improved credit quality. Net charge-offs increased $16 million (3.0 percent) in the second quarter of 2025, compared with the second quarter of 2024, driven by higher commercial real estate loan net charge-offs, partially offset by lower commercial loan net charge-offs. Net charge-offs increased $75 million (7.3 percent) in the first six months of 2025, compared with the first six months of 2024, primarily due to higher commercial and credit card loan net charge-offs. 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.

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.

*Not meaningful

(a)See Non-GAAP Financial Measures beginning on page 29.

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

operational efficiencies. Technology and communications expense increased primarily due to investments in infrastructure and technology development. Marketing and business development expense increased in the first six months of 2025, compared with the first six months of 2024, primarily due to a charitable foundation contribution in the first quarter of 2025.

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.

Balance Sheet Analysis

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.

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.

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.

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.

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.

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.

The Company generally retains portfolio loans through maturity; however, the Company’s intent may change over time based upon various factors such as ongoing asset/liability management activities, assessment of product profitability, credit risk, liquidity needs, and capital implications. If the Company’s intent or ability to hold an existing portfolio loan changes, it is transferred to loans held for sale.

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

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”).

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.

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.

Refer to Notes 3 and 14 in the Notes to Consolidated Financial Statements for further information on investment securities.

(a)Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future prepayments.

(b)Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to maturity if the security is purchased at par or a discount.

(c)Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity date for securities with a fair value equal to or below par.

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

(e)Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent. Yields on investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity.

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.

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.