US BANCORP \DE\
For the period ended Mar 31, 2026. Filed May 4, 2026.
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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.
Mar 31, 2026 · Filed May 4, 2026
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3) Business Segment Financial Review
Business Segment Financial Review
The Company’s major business segments are Wealth, Corporate, Commercial and Institutional Banking, Consumer and Business Banking, Payment Services, and Treasury and Corporate Support.
Basis for Financial Presentation Business segment results are derived from the Company’s business unit profitability reporting systems by specifically attributing managed balance sheet assets, deposits and other liabilities and their related income or expense. Refer to Note 16 of the Notes to Consolidated Financial Statements for further information on the business segments’ basis for financial presentation.
Designations, assignments and allocations change from time to time as management systems are enhanced, methods
of evaluating performance or product lines change or business segments are realigned to better respond to the Company’s diverse customer base. During 2026, certain organization and methodology changes were made, including moving the Impact Finance business unit from the Treasury and Corporate Support business segment to the Wealth, Corporate, Commercial and Institutional Banking business segment. In addition, card revenue generated from debit cards, which was previously included in the Payment Services business segment, is now included in the Consumer and Business Banking business segment. Prior period results were recast and presented on a comparable basis.
Wealth, Corporate, Commercial and Institutional Banking Wealth, Corporate, Commercial and Institutional Banking provides core banking, specialized lending, transaction and payment processing, capital markets, asset management, and brokerage and investment related services to wealth, middle market, large corporate, commercial real estate, government and institutional clients, and also includes investments in tax-advantaged projects. Wealth, Corporate, Commercial and Institutional Banking contributed $1.4 billion of the Company’s net income in the first quarter of 2026, or an increase of $229 million (19.0 percent) compared with the first quarter of 2025.
Net revenue increased $351 million (11.2 percent) in the first quarter of 2026, compared with the first quarter of 2025. Net interest income, on a taxable-equivalent basis, increased $165 million (9.7 percent) in the first quarter of 2026, compared with the first quarter of 2025, primarily due to higher deposit balances. Noninterest income increased $186 million (13.1 percent) in the first quarter of 2026, compared with the first quarter of 2025, primarily due to higher trust and investment management fees and higher capital markets revenue.
Noninterest expense increased $23 million (1.6 percent) in the first quarter of 2026, compared with the first quarter of 2025, primarily due to higher compensation and employee benefits expense and higher net shared services expense, partially offset by lower other noninterest expense. The provision for credit losses increased $23 million (54.8 percent) in the first quarter of 2026, compared with the first quarter of 2025, primarily due to loan growth.
Consumer and Business Banking Consumer and Business Banking comprises consumer banking, small business
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banking, debit cards and consumer lending. Products and services are delivered through banking offices, telephone servicing and sales, online services, direct mail, ATMs, mobile devices, distributed mortgage loan officers, and intermediary relationships including auto dealerships, mortgage banks, and strategic business partners. Consumer and Business Banking contributed $616 million of the Company’s net income in the first quarter of 2026, or an increase of $19 million (3.2 percent) compared with the first quarter of 2025.
Net revenue increased $27 million (1.2 percent) in the first quarter of 2026, compared with the first quarter of 2025. Net interest income, on a taxable-equivalent basis, increased $33 million (1.9 percent) in the first quarter of 2026, compared with the first quarter of 2025, driven by higher deposit balances and favorable deposit mix, partially offset by lower loan balances and yields. Noninterest income decreased $6 million (1.1 percent) in the first quarter of 2026, compared with the first quarter of 2025, primarily due to lower mortgage banking revenue, partially offset by higher lending and deposit-related fees.
Noninterest expense decreased $9 million (0.6 percent) in the first quarter of 2026, compared with the first quarter of 2025, primarily due to lower other intangibles expense, partially offset by higher net shared services expense. The provision for credit losses increased $10 million (16.1 percent) in the first quarter of 2026, compared with the first quarter of 2025, primarily due to higher net charge-offs.
Payment Services Payment Services includes consumer and business credit cards, stored-value cards, corporate, government and purchasing card services and merchant processing. Payment Services contributed $231 million of the Company’s net income in the first quarter of 2026, or a decrease of $1 million (0.4 percent) compared with the first quarter of 2025.
Net revenue increased $65 million (3.9 percent) in the first quarter of 2026, compared with the first quarter of 2025. Net interest income, on a taxable-equivalent basis, increased $52 million (7.0 percent) in the first quarter of 2026, compared with the first quarter of 2025, primarily due to higher average loan balances and lower funding costs. Noninterest income increased $13 million (1.4 percent) in the first quarter of 2026, compared with the first quarter of 2025, driven by higher merchant processing services and card revenue.
Noninterest expense increased $36 million (3.5 percent) in the first quarter of 2026, compared with the first quarter of 2025, primarily due to higher compensation and employee benefits expense and higher marketing and business development expense, partially offset by lower net shared services expense. The provision for credit losses increased $30 million (9.5 percent) in the first quarter of 2026, compared with the first quarter of 2025, primarily due to loan growth, partially offset by lower net charge-offs.
Treasury and Corporate Support Treasury and Corporate Support includes the Company’s investment portfolios, funding, capital management, interest rate risk management, income taxes not allocated to the business segments, and the residual aggregate of those expenses associated with corporate activities that are managed on a consolidated basis. Treasury and Corporate Support recorded a net loss of $336 million in the first quarter of 2026, compared with a net loss of $325 million in the first quarter of 2025.
Net revenue decreased $113 million in the first quarter of 2026, compared with the first quarter of 2025. Net interest income, on a taxable-equivalent basis, decreased $81 million (83.5 percent) in the first quarter of 2026, compared with the first quarter of 2025, primarily due to lower earning assets. Noninterest income decreased $32 million in the first quarter of 2026, compared with the first quarter of 2025, primarily due to losses from repositioning a portion of the investment securities portfolio.
Noninterest expense decreased $17 million (6.0 percent) in the first quarter of 2026, compared with the first quarter of 2025, primarily due to lower compensation and employee benefits expense, partially offset by higher technology and communications expense and higher marketing and business development expense. The provision for credit losses decreased $24 million (20.7 percent) in the first quarter of 2026, compared with the first quarter of 2025, primarily due to stable portfolio credit performance amid a continuing high level of economic uncertainty.
Income taxes are assessed to each business segment at a managerial tax rate of 25.0 percent with the residual tax expense or benefit to arrive at the consolidated effective tax rate included in Treasury and Corporate Support.
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| TABLE 11 | Business Segment Financial Performance |
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| Wealth, Corporate, Commercial and Institutional Banking · Consumer and Business Banking · Payment Services | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended March 31(Dollars in Millions) · 2026 · 2025 · PercentChange · 2026 · 2025 · PercentChange · 2026 · 2025 · PercentChange | ||||||||||||||
| Condensed Income Statement | ||||||||||||||
| Net interest income (taxable-equivalent basis) | $1,874 | $1,709 | 9.7% | $1,801 | $1,768 | 1.9% | $794 | $742 | 7.0% | |||||
| Noninterest income | 1,608 | 1,422 | 13.1 | 524 | 530 | (1.1) | 925 | 912 | 1.4 | |||||
| Total net revenue | 3,482 | 3,131 | 11.2 | 2,325 | 2,298 | 1.2 | 1,719 | 1,654 | 3.9 | |||||
| Noninterest expense | 1,505 | 1,482 | 1.6 | 1,431 | 1,440 | (.6) | 1,064 | 1,028 | 3.5 | |||||
| Income (loss) before provision and income taxes | 1,977 | 1,649 | 19.9 | 894 | 858 | 4.2 | 655 | 626 | 4.6 | |||||
| Provision for credit losses | 65 | 42 | 54.8 | 72 | 62 | 16.1 | 347 | 317 | 9.5 | |||||
| Income (loss) before income taxes | 1,912 | 1,607 | 19.0 | 822 | 796 | 3.3 | 308 | 309 | (.3) | |||||
| Income taxes and taxable-equivalent adjustment | 478 | 402 | 18.9 | 206 | 199 | 3.5 | 77 | 77 | — | |||||
| Net income (loss) | 1,434 | 1,205 | 19.0 | 616 | 597 | 3.2 | 231 | 232 | (.4) | |||||
| Net (income) loss attributable to noncontrolling interests | — | — | — | — | — | — | — | — | — | |||||
| Net income (loss) attributable to U.S. Bancorp | $1,434 | $1,205 | 19.0 | $616 | $597 | 3.2 | $231 | $232 | (.4) | |||||
| Average Balance Sheet | ||||||||||||||
| Loans | $203,834 | $182,191 | 11.9 | $144,291 | $153,906 | (6.2) | $44,003 | $41,607 | 5.8 | |||||
| Goodwill | 4,826 | 4,824 | — | 4,326 | 4,326 | — | 3,481 | 3,391 | 2.7 | |||||
| Other intangible assets | 682 | 863 | (21.0) | 3,914 | 4,368 | (10.4) | 237 | 249 | (4.8) | |||||
| Assets | 256,107 | 230,619 | 11.1 | 156,943 | 166,491 | (5.7) | 49,006 | 46,825 | 4.7 | |||||
| Noninterest-bearing deposits | 57,812 | 56,001 | 3.2 | 18,364 | 19,204 | (4.4) | 2,425 | 2,616 | (7.3) | |||||
| Interest-bearing deposits | 229,770 | 219,157 | 4.8 | 204,121 | 198,866 | 2.6 | 94 | 94 | — | |||||
| Total deposits | 287,582 | 275,158 | 4.5 | 222,485 | 218,070 | 2.0 | 2,519 | 2,710 | (7.0) | |||||
| Total U.S. Bancorp shareholders’ equity | 24,200 | 23,508 | 2.9 | 13,107 | 13,705 | (4.4) | 10,596 | 10,229 | 3.6 | |||||
| Treasury andCorporate Support · ConsolidatedCompany | ||||||||||||||
| Three Months Ended March 31(Dollars in Millions) | 2026 | 2025 | PercentChange | 2026 | 2025 | PercentChange | ||||||||
| Condensed Income Statement | ||||||||||||||
| Net interest income (taxable-equivalent basis) | $(178) | $(97) | (83.5)% | $4,291 | $4,122 | 4.1% | ||||||||
| Noninterest income | (60) | (28) | * | 2,997 | 2,836 | 5.7 | ||||||||
| Total net revenue | (238) | (125) | (90.4) | 7,288 | 6,958 | 4.7 | ||||||||
| Noninterest expense | 265 | 282 | (6.0) | 4,265 | 4,232 | .8 | ||||||||
| Income (loss) before provision and income taxes | (503) | (407) | (23.6) | 3,023 | 2,726 | 10.9 | ||||||||
| Provision for credit losses | 92 | 116 | (20.7) | 576 | 537 | 7.3 | ||||||||
| Income (loss) before income taxes | (595) | (523) | (13.8) | 2,447 | 2,189 | 11.8 | ||||||||
| Income taxes and taxable-equivalent adjustment | (264) | (205) | (28.8) | 497 | 473 | 5.1 | ||||||||
| Net income (loss) | (331) | (318) | (4.1) | 1,950 | 1,716 | 13.6 | ||||||||
| Net (income) loss attributable to noncontrolling interests | (5) | (7) | 28.6 | (5) | (7) | 28.6 | ||||||||
| Net income (loss) attributable to U.S. Bancorp | $(336) | $(325) | (3.4) | $1,945 | $1,709 | 13.8 | ||||||||
| Average Balance Sheet | ||||||||||||||
| Loans | $1,432 | $1,324 | 8.2 | $393,560 | $379,028 | 3.8 | ||||||||
| Goodwill | — | — | — | 12,633 | 12,541 | .7 | ||||||||
| Other intangible assets | 7 | 8 | (12.5) | 4,840 | 5,488 | (11.8) | ||||||||
| Assets | 226,226 | 225,458 | .3 | 688,282 | 669,393 | 2.8 | ||||||||
| Noninterest-bearing deposits | 2,027 | 1,875 | 8.1 | 80,628 | 79,696 | 1.2 | ||||||||
| Interest-bearing deposits | 506 | 8,721 | (94.2) | 434,491 | 426,838 | 1.8 | ||||||||
| Total deposits | 2,533 | 10,596 | (76.1) | 515,119 | 506,534 | 1.7 | ||||||||
| Total U.S. Bancorp shareholders’ equity | 17,954 | 12,169 | 47.5 | 65,857 | 59,611 | 10.5 | ||||||||
*Not meaningful
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Non-GAAP Financial Measures
In addition to capital ratios defined by banking regulators, the Company considers various other measures when evaluating capital utilization and adequacy, including:
Tangible common equity to tangible assets,
Tangible common equity to risk-weighted assets,
Tangible book value per common share, and
Return on tangible common equity.
These capital measures are viewed by management as useful additional methods of evaluating the Company’s utilization of its capital held and the level of capital available to withstand unexpected negative market or economic conditions. Additionally, presentation of these measures allows investors, analysts and banking regulators to assess the Company’s capital position and use of capital relative to other financial services companies. These capital measures are not defined in generally accepted accounting principles (“GAAP”) or in banking regulations. As a result, these capital measures
disclosed by the Company may be considered non-GAAP financial measures. Management believes this information helps investors assess trends in the Company’s capital utilization and adequacy.
The Company also discloses net interest income and related ratios and analysis on a taxable-equivalent basis, which may also be considered non-GAAP financial measures. The Company believes this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net interest income arising from taxable and tax-exempt sources. In addition, certain performance measures utilize net interest income on a taxable-equivalent basis, including the efficiency ratio and net interest margin.
There may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider the consolidated financial statements and other financial information contained in this report in their entirety, and not to rely on any single financial measure.
The following tables show the Company’s calculation of these non-GAAP financial measures:
| (Dollars in Millions) | March 31,2026 | December 31,2025 |
|---|---|---|
| Total equity | $66,247 | $65,651 |
| Preferred stock | (6,808) | (6,808) |
| Noncontrolling interests | (461) | (458) |
| Common equity(1) | 58,978 | 58,385 |
| Goodwill (net of deferred tax liability)(a) | (11,588) | (11,603) |
| Intangible assets (net of deferred tax liability), other than mortgage servicing rights | (1,429) | (1,507) |
| Tangible common equity(2) | 45,961 | 45,275 |
| Total assets(3) | 700,998 | 692,345 |
| Goodwill (net of deferred tax liability)(a) | (11,588) | (11,603) |
| Intangible assets (net of deferred tax liability), other than mortgage servicing rights | (1,429) | (1,507) |
| Tangible assets(4) | 687,981 | 679,235 |
| Risk-weighted assets, determined in accordance with prescribed regulatory capital requirements effective for the Company(5) | 487,958 | 480,382 |
| Ratios | ||
| Common equity to assets(1)/(3) | 8.4% | 8.4% |
| Tangible common equity to tangible assets(2)/(4) | 6.7 | 6.7 |
| Tangible common equity to risk-weighted assets(2)/(5) | 9.4 | 9.4 |
| 26 | U.S. Bancorp |
| Three Months Ended March 31 | ||
|---|---|---|
| (Dollars in Millions) | 2026 | 2025 |
| Net interest income | $4,263 | $4,092 |
| Taxable-equivalent adjustment(a) | 28 | 30 |
| Net interest income, on a taxable-equivalent basis | 4,291 | 4,122 |
| Net interest income, on a taxable-equivalent basis (as calculated above) | 4,291 | 4,122 |
| Noninterest income | 2,997 | 2,836 |
| Less: Securities gains (losses), net | (35) | — |
| Total net revenue, excluding net securities gains (losses)(1) | 7,323 | 6,958 |
| Noninterest expense(2) | 4,265 | 4,232 |
| Efficiency ratio(2)/(1) | 58.2% | 60.8% |
(a)Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes.
| Three Months EndedMarch 31 | ||
|---|---|---|
| (Dollars in Millions) | 2026 | 2025 |
| Net income applicable to U.S. Bancorp common shareholders | $1,841 | $1,603 |
| Intangible amortization (net-of-tax) | 87 | 97 |
| Net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization | 1,928 | 1,700 |
| Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization(1) | 7,819 | 6,894 |
| Average total equity | 66,315 | 60,071 |
| Average preferred stock | (6,808) | (6,808) |
| Average noncontrolling interests | (458) | (460) |
| Average goodwill (net of deferred tax liability)(a) | (11,601) | (11,513) |
| Average intangible assets (net of deferred tax liability), other than mortgage servicing rights | (1,474) | (1,806) |
| Average tangible common equity(2) | 45,974 | 39,484 |
| Return on tangible common equity(1)/(2) | 17.0% | 17.5% |
| (Dollars in Millions, Except Per Share Data) | March 31, 2026 | March 31, 2025 |
|---|---|---|
| Common equity | $58,978 | $53,288 |
| Goodwill (net of deferred tax liability)(a) | (11,588) | (11,521) |
| Intangible assets (net of deferred tax liability), other than mortgage servicing rights | (1,429) | (1,761) |
| Tangible common equity(1) | 45,961 | 40,006 |
| Common shares outstanding(2) | 1,555 | 1,560 |
| Tangible book value per common share(1)/(2) | $29.56 | $25.64 |
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Critical Accounting Policies
The accounting and reporting policies of the Company comply with accounting principles generally accepted in the United States and conform to general practices within the banking industry. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. The Company’s financial position and results of operations can be affected by these estimates and assumptions, which are integral to understanding the Company’s financial statements. Critical accounting policies are those policies management believes are the most important to the portrayal of the Company’s financial condition and results, and require management to make estimates that are difficult, subjective or complex. Most accounting policies are not considered by management to be critical accounting policies. Management has discussed the development and the selection of critical accounting policies with the Company’s Audit Committee. Those policies considered to be critical accounting policies relate to the allowance for credit losses, fair value estimates, MSRs, and income taxes. These accounting policies are discussed in detail in “Management’s Discussion and Analysis — Critical Accounting Policies” and the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.