U.S. Bancorp · Earnings release

3Q24 Key Financial Data

PROFITABILITY METRICS

•Net income of $1,714 million and diluted earnings per common share of $1.03. Results included an $89 million after-tax net securities loss largely offset by lower income tax expense

•Net interest income on a taxable-equivalent basis increased 2.8% on a linked quarter basis

•Net revenue of $6,864 million, including $4,166 million of net interest income on a taxable-equivalent basis

•Noninterest income of $2,817 million, which excludes net securities losses, driven by year-over-year increases in:

◦Commercial products revenue of 12.1%

◦Trust and investment management fees of 6.4%

◦Payment services revenue of 3.1%

◦Mortgage banking revenue of 7.6%

•Noninterest expense decreased 1.0% year-over-year and increased 0.4% on a linked quarter basis, as adjusted for notable items in the prior quarters

•Return on tangible common equity of 17.9%, return on average assets of 1.03%, and efficiency ratio of 60.2%

Return on average assets (%)

Return on average common equity (%)

Return on tangible common equity (%) (a)

Net interest margin (%)

Efficiency ratio (%) (a)

Tangible efficiency ratio (%) (a)

INCOME STATEMENT (b)

Net interest income (taxable-equivalent basis)

Noninterest income

Noninterest expense

Net income attributable to U.S. Bancorp

Diluted earnings per common share

Dividends declared per common share

BALANCE SHEET (b)

Average total loans

Average total deposits

Net charge-off ratio (%)

Book value per common share (period end)

Basel III standardized CET1 (%) (c)

(a) See Non-GAAP Financial Measures reconciliation on page 18

(b) Dollars in millions, except per share data

(c) CET1 = Common equity tier 1 capital ratio

CEO Commentary

"In the third quarter, we reported diluted earnings per share of $1.03 and a return on tangible common equity of 17.9%. Our expense levels decreased year-over-year which supported modest positive operating leverage, excluding net securities losses and prior year notable items. We expect positive operating leverage to expand in the fourth quarter and into 2025. Net interest income and margin increased on a linked quarter basis benefiting from loan mix, continued repricing of fixed rate earning assets and disciplined liability management. Primary fees categories including commercial products, trust and investment management, payment services and mortgage banking all increased year-over-year as we continue to focus on our diverse and unique business mix.

Credit quality results were in line with expectations, and we continue to increase our capital position, ending the quarter with a CET1 capital ratio of 10.5%. We are committed to balancing capital growth through earnings accretion with capital distributions and expect to resume share buybacks in the near term. Finally, I would like to thank our dedicated employees for all they do to support our clients, communities, and shareholders.”

— Andy Cecere, Chairman and CEO, U.S. Bancorp

Business and Other Highlights

U.S. Bank announced Edward Jones partnership

U.S. Bank entered a strategic partnership to serve Edward Jones' clients' banking needs with leading U.S. Bank deposit and credit card solutions. Through the alliance, Edward Jones financial advisors will have the opportunity and tools to introduce co-branded U.S. Bank deposit and credit card products to the firm's U.S. clients beginning in late 2025.

U.S. Bank unveiled industry-leading card, savings combination

U.S. Bank launched two new U.S. Bank Smartly® products designed to maximize credit card rewards while also helping clients earn more on their savings balances. When paired with a Bank Smartly Savings account and average daily combined balances in U.S. Bank deposit, trust or investment accounts, clients can increase their earning opportunities up to as much as 4% cash back on all purchases.

U.S. Bank acquired healthcare payments platform

U.S. Bank acquired Salucro Healthcare Solutions LLC, which provides healthcare financial technology, focused on patient payments and billing. Salucro is a market leader in online billing and payments offerings for healthcare providers across the United States. Salucro had previously been a partner of Elavon, the merchant acquiring unit within U.S. Bank. Salucro's platform will be sold through Elavon as MedEpay.

U.S. Bank leaders named "Most Powerful Women in Banking"

American Banker recognized two U.S. Bank leaders for its 2024 Most Powerful Women in Banking awards, naming President Gunjan Kedia and Vice Chair and Chief Risk Officer Jodi Richard among individual honorees. Kedia, who was named president in May 2024, leads all of the revenue business lines. Richard oversees the Company's Risk Management and Compliance organization.

Investor contact: George Andersen, 612.303.3620 | Media contact: Jeff Shelman, 612.303.9933

U.S. Bancorp Third Quarter 2024 Results

INCOME STATEMENT HIGHLIGHTS

($ in millions, except per share data)

ADJUSTED (a) (b)

Percent Change

Percent Change

Net interest income

Taxable-equivalent adjustment

Net interest income (taxable-equivalent basis)

Noninterest income

Total net revenue

—

—

Noninterest expense

(.2)

.4

Income before provision and income taxes

.3

(.7)

Provision for credit losses

Income before taxes

.9

(.4)

Income taxes and taxable-equivalent adjustment

Net income

(.9)

Net (income) loss attributable to noncontrolling interests

(8)

(8)

(1)

—

nm

(8)

(8)

(1)

—

nm

Net income attributable to U.S. Bancorp

Net income applicable to U.S. Bancorp common shareholders

Diluted earnings per common share

(a)2Q24 excludes a $26 million ($19 million net-of-tax) notable item for an increase in the FDIC special assessment. 3Q23 excludes $284 million ($213 million net-of-tax) of merger and integration-related charges.

(b)See Non-GAAP Financial Measures reconciliation beginning on page 18

INCOME STATEMENT HIGHLIGHTS

($ in millions, except per share data)

ADJUSTED (c) (d)

YTD

YTD

Percent

Change

YTD

YTD

Percent

Change

Net interest income

Taxable-equivalent adjustment

Net interest income (taxable-equivalent basis)

Noninterest income

Total net revenue

Noninterest expense

Income before provision and income taxes

Provision for credit losses

Income before taxes

Income taxes and taxable-equivalent adjustment

Net income

Net (income) loss attributable to noncontrolling interests

Net income attributable to U.S. Bancorp

Net income applicable to U.S. Bancorp common shareholders

Diluted earnings per common share

(.7)

(c)2024 excludes $291 million ($218 million net-of-tax) of notable items including: $155 million of merger and integration-related charges and $136 million for the increase in the FDIC special assessment. 2023 excludes $1.1 billion ($828 million net-of-tax) of notable items including: $(22) million of noninterest income related to balance sheet repositioning and capital management actions, $838 million of merger and integration-related charges and $243 million of provision for credit losses related to balance sheet repositioning and capital management actions.

(d)See Non-GAAP Financial Measures reconciliation beginning on page 18

2

U.S. Bancorp Third Quarter 2024 Results

Net income attributable to U.S. Bancorp was $1,714 million for the third quarter of 2024, $191 million higher than the $1,523 million for the third quarter of 2023 and $111 million higher than the $1,603 million for the second quarter of 2024. Diluted earnings per common share was $1.03 in the third quarter of 2024, compared with $0.91 in the third quarter of 2023 and $0.97 in the second quarter of 2024. The third quarter of 2024 included $119 million of net losses on investment securities sales ($89 million net-of-tax) which was largely offset by lower income tax expense which reflected certain tax settlements. The third quarter of 2023 included notable items of $213 million or ($0.14) per diluted common share and the second quarter of 2024 included notable items of $19 million or ($0.01) per diluted common share.

On an adjusted basis, excluding the impact of notable items in the prior quarters, net income applicable to common shareholders for the third quarter of 2024 of $1,601 million, was $23 million lower than the third quarter of 2023 and $64 million higher than the second quarter of 2024.

The increase in net income attributable to U.S. Bancorp year-over-year was primarily due to lower noninterest expense driven by notable items from the prior year, and lower income tax expense, partially offset by lower total net revenue, including net securities losses in the current quarter, and an increase in the provision for credit losses. Excluding notable items in the third quarter of 2023, pretax income in the third quarter of 2024 decreased 7.4 percent compared with a year ago. Net interest income decreased 2.4 percent on a year-over-year taxable-equivalent basis, 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 net interest margin decreased to 2.74 percent in the third quarter of 2024 from 2.81 percent in the third quarter of 2023, driven by similar factors. Noninterest income decreased 2.4 percent compared with a year ago driven by net losses on the sales of securities, lower service charges and lower other revenue, partially offset by higher fee revenue across all other categories. Noninterest expense decreased 7.2 percent primarily due to prior year notable items and lower other noninterest expense, partially offset by higher compensation and employee benefits. Excluding prior year notable items, noninterest expense decreased 1.0 percent. The provision for credit losses increased $42 million (8.2 percent) compared with the third quarter of 2023 largely driven by higher losses on credit card, commercial, and commercial real estate loans.

Net income attributable to U.S. Bancorp increased on a linked quarter basis primarily due to higher total net revenue (excluding net losses on investment securities sales), lower noninterest expense and provision for credit losses. The impact of net losses on investment securities sales, net-of-tax, was largely offset by lower income tax expense. Excluding notable items in the second quarter of 2024, pretax income in the third quarter of 2024 decreased 0.4 percent on a linked quarter basis. Net interest income increased 2.8 percent on a taxable-equivalent basis due to earning assets mix as well as continued discipline of overall funding costs. The net interest margin increased to 2.74 percent in the third quarter of 2024 from 2.67 percent in the second quarter of 2024, driven by similar factors.

Noninterest income in the third quarter of 2024 decreased 4.2 percent from the second quarter of 2024 primarily due to net losses on securities sales, lower mortgage banking revenue and service charges, partially offset by higher trust and investment management fees and commercial products revenue. Noninterest expense decreased 0.2 percent due to lower other noninterest expense and prior quarter notable items, partially offset by higher compensation and employee benefits expense. Excluding prior quarter notable items, noninterest expense increased 0.4 percent on a linked quarter basis. The provision for credit losses decreased $11 million (1.9 percent) compared with the second quarter of 2024 primarily due to lower ending loan balances.

3

U.S. Bancorp Third Quarter 2024 Results

NET INTEREST INCOME

(Taxable-equivalent basis; $ in millions)

Change

YTD

YTD

Change

Components of net interest income

Income on earning assets

$

$

$

$

$

$

$

$

Expense on interest-bearing liabilities

Net interest income

$

$

$

$

$

$

$

$

Average yields and rates paid

Earning assets yield

%

%

%

%

%

%

%

%

Rate paid on interest-bearing liabilities

Gross interest margin

%

%

%

%

%

%

%

%

Net interest margin

%

%

%

%

%

%

%

%

Average balances

Investment securities (a)

$

$

$

$

$

$

$

$

Loans

Interest-bearing deposits with banks

Earning assets

Interest-bearing liabilities

(a) Excludes unrealized gain (loss)

Net interest income on a taxable-equivalent basis in the third quarter of 2024 was $4,166 million, a decrease of $102 million (2.4 percent) from the third quarter of 2023. The decrease 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. Average earning assets were $1.9 billion (0.3 percent) higher than the third quarter of 2023, reflecting increases of $3.7 billion (2.2 percent) in average investment securities due to balance sheet positioning and liquidity management and $3.5 billion (37.7 percent) in other earning assets, partially offset by decreases of $2.8 billion (0.7 percent) in average total loans and $2.6 billion (4.8 percent) in average interest-bearing deposits with banks.

Net interest income on a taxable-equivalent basis increased $114 million (2.8 percent) on a linked quarter basis primarily due to earning assets repricing and mix as well as continued discipline of overall funding costs. Average earning assets were $1.7 billion (0.3 percent) lower on a linked quarter basis, reflecting decreases in average total loans of $615 million (0.2 percent) and average interest-bearing deposits with banks of $2.5 billion (4.7 percent), partially offset by an increase of $1.2 billion (9.9 percent) in other earning assets.

The net interest margin in the third quarter of 2024 was 2.74 percent, compared with 2.81 percent in the third quarter of 2023 and 2.67 percent in the second quarter of 2024. The decrease in the net interest margin from the prior year was driven by the factors mentioned above, inclusive of changes in balance sheet composition. The increase in the net interest margin from the prior quarter was driven by the factors mentioned above.

4

U.S. Bancorp Third Quarter 2024 Results

AVERAGE LOANS

($ in millions)

Percent Change

YTD

YTD

Percent Change

Commercial

(.9)

Lease financing

(.4)

Total commercial

(.9)

Commercial mortgages

Construction and development

Total commercial real estate

Residential mortgages

.9

.3

Credit card

Retail leasing

Home equity and second mortgages

Other

Total other retail

(.7)

Total loans

(.2)

(.7)

Average total loans for the third quarter of 2024 were $2.8 billion (0.7 percent) lower than the third quarter of 2023. The decrease was primarily due to lower total commercial loans (1.2 percent), total commercial real estate loans (5.2 percent) and total other retail loans (7.5 percent), partially offset by higher residential mortgages (2.6 percent) and credit card loans (7.9 percent). The decrease in commercial loans was primarily due to decreased demand as corporate customers accessed the capital markets. The decrease in commercial real estate loans was primarily due to payoffs exceeding a reduced level of new originations. The decrease in other retail loans was primarily due to lower automobile loans. The increase in residential mortgages was primarily driven by originations. The increase in credit card loans was primarily driven by higher spend volume.

Average total loans were $615 million (0.2 percent) lower than the second quarter of 2024. The decrease was primarily due to lower total commercial loans (0.9 percent) and total commercial real estate loans (1.6 percent), partially offset by higher residential mortgages (0.9 percent) and credit card loans (2.3 percent). Linked quarter changes were primarily driven by similar factors as the year-over-year changes.

5

U.S. Bancorp Third Quarter 2024 Results

AVERAGE DEPOSITS

($ in millions)

Percent Change

YTD

YTD

Percent Change

Noninterest-bearing deposits

Interest-bearing savings deposits

Interest checking

(.1)

Money market savings

(.9)

Savings accounts

Total savings deposits

Time deposits

Total interest-bearing deposits

(.6)

Total deposits

(.7)

.4

Average total deposits for the third quarter of 2024 were $3.5 billion (0.7 percent) lower than the third quarter of 2023. Average noninterest-bearing deposits decreased $16.6 billion (17.0 percent) reflecting balance decreases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking. Average total savings deposits were $9.0 billion (2.5 percent) higher year-over-year driven by increases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking. Average time deposits were $4.1 billion (7.5 percent) higher than the third quarter of 2023 mainly within Consumer and Business Banking, partially offset by decreases within Wealth, Corporate, Commercial and Institutional Banking. 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 total deposits decreased $5.2 billion (1.0 percent) from the second quarter of 2024. On a linked quarter basis, average noninterest-bearing deposits decreased $2.5 billion (3.0 percent) reflecting a decrease within Wealth, Corporate, Commercial and Institutional Banking. Average total savings deposits decreased $4.0 billion (1.1 percent) driven by decreases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking. Average time deposits were $1.3 billion (2.2 percent) higher on a linked quarter basis mainly within Consumer and Business Banking. 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.

6

U.S. Bancorp Third Quarter 2024 Results

NONINTEREST INCOME

($ in millions)

Percent Change

YTD

YTD

Percent Change

Card revenue

(.5)

Corporate payment products revenue

.9

Merchant processing services

Trust and investment management fees

Service charges

Commercial products revenue

Mortgage banking revenue

Investment products fees

Securities gains (losses), net

—

nm

nm

nm

Other

Total before balance sheet optimization

Balance sheet optimization

—

—

—

—

—

—

nm

Total noninterest income

Third quarter noninterest income of $2,698 million was $66 million (2.4 percent) lower than the third quarter of 2023. The decrease was driven by lower service charges of $32 million (9.6 percent) due to lower deposit service charges, $55 million (27.8 percent) lower other revenue, and net losses of $119 million on securities sales. Partially offsetting these decreases were higher commercial products revenue, trust and investment management fees, and payment services revenue. Commercial products revenue increased $43 million (12.1 percent) driven by higher corporate bond fees and new product growth. Trust and investment management fees increased $40 million (6.4 percent) driven by business growth and favorable market conditions. Payment services revenue increased $32 million (3.1 percent) compared with the third quarter of 2023.

Within payment services revenue, card revenue increased $14 million (3.4 percent) due to favorable rates and merchant processing revenue increased $13 million (3.0 percent) due to business volume growth and favorable rates.

Noninterest income was $117 million (4.2 percent) lower in the third quarter of 2024 compared with the second quarter of 2024. The decrease was driven by lower mortgage banking revenue and service charges, and net losses of $119 million on securities sales compared with losses of $36 million in the prior quarter. Mortgage banking revenue decreased $35 million (18.4 percent) primarily driven by a prior quarter gain on the sale of mortgage servicing rights. Service charges decreased $20 million (6.2 percent) due to lower treasury management fees and the wind down of the cash servicing business. Partially offsetting these decreases were increases in commercial products revenue and trust and investment management fees.

Commercial products revenue increased $23 million (6.1 percent) due to higher corporate bond fees. Trust and investment management fees increased $18 million (2.8 percent) driven by business growth and favorable market conditions.

7

U.S. Bancorp Third Quarter 2024 Results

NONINTEREST EXPENSE

($ in millions)

Percent Change

YTD

YTD

Percent Change

Compensation and employee benefits

.7

.8

.5

Net occupancy and equipment

.3

Professional services

Marketing and business development

Technology and communications

.3

Other intangibles

—

Other

Total before notable items

.4

(.7)

Notable items

—

nm

nm

Total noninterest expense

(.2)

Third quarter noninterest expense of $4,204 million was $326 million (7.2 percent) lower than the third quarter of 2023. Excluding notable items of $284 million in the third quarter of 2023, third quarter noninterest expense decreased $42 million (1.0 percent) compared with the third quarter of 2023, due to lower other noninterest expense (15.7 percent) partially offset by higher compensation and employee benefits. Compensation and employee benefits expense increased $22 million (0.8 percent) compared with the third quarter of 2023 primarily due to higher commissions and performance-based incentives.

Noninterest expense decreased $10 million (0.2 percent) from the second quarter of 2024. Excluding notable items of $26 million in the second quarter of 2024, third quarter noninterest expense increased $16 million (0.4 percent) on a linked quarter basis primarily driven by higher compensation and employee benefits expense and higher technology and communications expense, partially offset by lower other noninterest expense. Compensation and employee benefits expense increased $18 million (0.7 percent) primarily due to higher performance-based incentives. Technology and communications expense increased $15 million (2.9 percent) driven by investment in infrastructure and technology development.

Provision for Income Taxes

The provision for income taxes for the third quarter of 2024 resulted in a tax rate of 18.1 percent on a taxable-equivalent basis (effective tax rate of 16.9 percent), compared with 23.3 percent on a taxable-equivalent basis (effective tax rate of 22.0 percent) in the third quarter of 2023, and a tax rate of 22.7 percent on a taxable-equivalent basis (effective tax rate of 21.6 percent) in the second quarter of 2024. The tax rate in the third quarter of 2024 reflects the impact of favorable settlements.

8

U.S. Bancorp Third Quarter 2024 Results

ALLOWANCE FOR CREDIT LOSSES

($ in millions)

% (a)

% (a)

% (a)

% (a)

% (a)

Balance, beginning of period

Net charge-offs

Commercial

Lease financing

8

8

7

7

6

Total commercial

Commercial mortgages

Construction and development

1

1

6

(4)

—

—

Total commercial real estate

Residential mortgages

(3)

(4)

—

—

(1)

—

(3)

Credit card

Retail leasing

5

3

5

2

2

Home equity and second mortgages

(1)

(1)

—

—

(1)

1

Other

Total other retail

Total net charge-offs

Provision for credit losses

Balance, end of period

Components

Allowance for loan losses

Liability for unfunded credit commitments

Total allowance for credit losses

Gross charge-offs

Gross recoveries

Allowance for credit losses as a percentage of

Period-end loans (%)

Nonperforming loans (%)

Nonperforming assets (%)

(a) Annualized and calculated on average loan balances

9

U.S. Bancorp Third Quarter 2024 Results

The Company’s provision for credit losses for the third quarter of 2024 was $557 million, compared with $568 million in the second quarter of 2024 and $515 million in the third quarter of 2023. The third quarter of 2024 provision was $11 million (1.9 percent) lower than the second quarter of 2024 and $42 million (8.2 percent) higher than the third quarter of 2023. The linked quarter decrease in provision expense was primarily driven by lower ending loan balances and continued stability in the economic and credit environment. The increase in provision expense on a year-over-year basis was primarily driven by higher losses on credit card, commercial, and commercial real estate loans.

The Company continues to monitor economic uncertainty related to interest rates, inflationary pressures, and other economic factors that may affect the financial strength of corporate and consumer borrowers.

Total net charge-offs in the third quarter of 2024 were $564 million, compared with $538 million in the second quarter of 2024 and $420 million in the third quarter of 2023. The net charge-off ratio was 0.60 percent in the third quarter of 2024, compared with 0.58 percent in the second quarter of 2024 and 0.44 percent in the third quarter of 2023. The increase in net charge-offs on a linked quarter basis was primarily due to higher net charge-offs on commercial real estate loans. The increase in net charge-offs on a year-over-year basis primarily reflected higher losses on credit card, commercial, and commercial real estate loans.

The allowance for credit losses was $7,927 million at September 30, 2024, compared with $7,934 million at June 30, 2024, and $7,790 million at September 30, 2023. The linked quarter decrease in the allowance for credit losses was primarily driven by lower loan balances. The increase in the allowance for credit losses on a year-over-year basis was primarily driven by growth in credit card balances. The ratio of the allowance for credit losses to period-end loans was 2.12 percent at September 30, 2024, compared with 2.11 percent at June 30, 2024, and 2.08 percent at September 30, 2023. The ratio of the allowance for credit losses to nonperforming loans was 438 percent at September 30, 2024 and June 30, 2024, compared with 615 percent at September 30, 2023.

Nonperforming assets were $1,848 million at September 30, 2024, compared with $1,852 million at June 30, 2024, and $1,310 million at September 30, 2023. The ratio of nonperforming assets to loans and other real estate was 0.49 percent at September 30, 2024 and June 30, 2024, compared with 0.35 percent at September 30, 2023. The increase in nonperforming assets on a year-over year basis was primarily due to higher commercial and commercial real estate nonperforming loans. Accruing loans 90 days or more past due were $738 million at September 30, 2024, compared with $701 million at June 30, 2024, and $569 million at September 30, 2023.

U.S. Bancorp Third Quarter 2024 Results

DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES

(Percent)

Delinquent loan ratios - 90 days or more past due

Commercial

Commercial real estate

—

—

Residential mortgages

Credit card

Other retail

Total loans

Delinquent loan ratios - 90 days or more past due and nonperforming loans

Commercial

Commercial real estate

Residential mortgages

Credit card

Other retail

Total loans

ASSET QUALITY (a)

($ in millions)

Nonperforming loans

Commercial

Lease financing

Total commercial

Commercial mortgages

Construction and development

Total commercial real estate

Residential mortgages

Credit card

—

—

—

—

—

Other retail

Total nonperforming loans

Other real estate

Other nonperforming assets

Total nonperforming assets

Accruing loans 90 days or more past due

Nonperforming assets to loans plus ORE (%)

(a) Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due

U.S. Bancorp Third Quarter 2024 Results

COMMON SHARES

(Millions)

Beginning shares outstanding

Shares issued for stock incentive plans,

acquisitions and other corporate purposes

1

—

3

1

Shares repurchased

—

—

(1)

—

—

Ending shares outstanding

CAPITAL POSITION

Preliminary Data

($ in millions)

Total U.S. Bancorp shareholders' equity

Basel III Standardized Approach (a)

Common equity tier 1 capital

Tier 1 capital

Total risk-based capital

Common equity tier 1 capital ratio

%

%

%

%

%

Tier 1 capital ratio

Total risk-based capital ratio

Leverage ratio

Tangible common equity to tangible assets (b)

Tangible common equity to risk-weighted assets (b)

Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (b)

(a) Amounts and ratios calculated in accordance with transitional regulatory requirements related to the current expected credit losses methodology

(b) See Non-GAAP Financial Measures reconciliation on page 18

Total U.S. Bancorp shareholders’ equity was $58.9 billion at September 30, 2024, compared with $56.4 billion at June 30, 2024, and $53.1 billion at September 30, 2023. During the quarter, the Company's Board of Directors authorized a share repurchase program for up to $5 billion of the Company's outstanding common stock beginning September 13, 2024. The Company intends to begin repurchasing shares, in addition to those currently done in connection with its stock-based compensation plans, by early 2025. The Company also declared a regular quarterly dividend of $0.50 per share, payable on October 15, 2024, which was a 2.0 percent increase over the prior quarter dividend.

All regulatory ratios continue to be in excess of “well-capitalized” requirements. The common equity tier 1 capital to risk-weighted assets ratio using the Basel III standardized approach was 10.5 percent at September 30, 2024, compared with 10.3 percent at June 30, 2024, and 9.7 percent at September 30, 2023. The common equity tier 1 capital to risk-weighted assets ratio, reflecting the full implementation of the current expected credit losses methodology, was 10.5 percent at September 30, 2024, compared with 10.2 percent at June 30, 2024, and 9.5 percent at September 30, 2023.

U.S. Bancorp Third Quarter 2024 Results

Investor Conference Call

On Wednesday, October 16, 2024 at 7 a.m. CT, Chairman and Chief Executive Officer Andy Cecere and Senior Executive Vice President and Chief Financial Officer John Stern will host a conference call to review the financial results. The live conference call will be available online and by telephone. To access the webcast and presentation, visit the U.S. Bancorp website at usbank.com and click on “About us”, “Investor relations”, "News & events" and “Webcasts & presentations.” To access the conference call from locations within the United States and Canada, please dial 888-210-4659. Participants calling from outside the United States and Canada, please dial 646-960-0383. The access code for all participants is 7269933.

For those unable to participate during the live call, a replay will be available at approximately 10 a.m. CT on Wednesday, October 16, 2024. To access the replay, please visit the U.S. Bancorp website at usbank.com and click on “About us”, “Investor relations”, "News & events" and “Webcasts & presentations.”

About U.S. Bancorp

U.S. Bancorp, with more than 70,000 employees and $686 billion in assets as of September 30, 2024, is the parent company of U.S. Bank National Association. Headquartered in Minneapolis, the company serves millions of customers locally, nationally and globally through a diversified mix of businesses including consumer banking, business banking, commercial banking, institutional banking, payments and wealth management. U.S. Bancorp has been recognized for its approach to digital innovation, community partnerships and customer service, including being named one of the 2024 World’s Most Ethical Companies and Fortune’s most admired superregional bank. Learn more at usbank.com/about.

Forward-looking Statements

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995:

This press release contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. These forward-looking statements cover, among other things, future economic conditions and the anticipated future revenue, expenses, financial condition, asset quality, capital and liquidity levels, plans, prospects and operations of U.S. Bancorp. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “projects,” “forecasts,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.”

Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those set forth in forward-looking statements, including the following risks and uncertainties:

•Deterioration in general business and economic conditions or turbulence in domestic or global financial markets, which could adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities, reduce the availability of funding to certain financial institutions, lead to a tightening of credit, and increase stock price volatility;

•Turmoil and volatility in the financial services industry, including failures or rumors of failures of other depository institutions, which could affect the ability of depository institutions, including U.S. Bank National Association, to attract and retain depositors, and could affect the ability of financial services providers, including U.S. Bancorp, to borrow or raise capital;

•Increases in FDIC assessments due to bank failures;

•Actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions;

•Uncertainty regarding the content, timing and impact of changes to regulatory capital, liquidity and resolution-related requirements applicable to large banking organizations in response to adverse developments affecting the banking sector;

•Changes to statutes, regulations, or regulatory policies or practices, including capital and liquidity requirements, and the enforcement and interpretation of such laws and regulations, and U.S. Bancorp’s ability to address or satisfy those requirements and other requirements or conditions imposed by regulatory entities;

•Changes in interest rates;

•Increases in unemployment rates;

•Deterioration in the credit quality of U.S. Bancorp's loan portfolios or in the value of the collateral securing those loans;

•Changes in commercial real estate occupancy rates;

•Risks related to originating and selling mortgages, including repurchase and indemnity demands, and related to U.S. Bancorp’s role as a loan servicer;

U.S. Bancorp Third Quarter 2024 Results

•Impacts of current, pending or future litigation and governmental proceedings;

•Increased competition from both banks and non-banks;

•Effects of climate change and related physical and transition risks;

•Changes in customer behavior and preferences and the ability to implement technological changes to respond to customer needs and meet competitive demands;

•Breaches in data security;

•Failures or disruptions in or breaches of U.S. Bancorp’s operational, technology or security systems or infrastructure, or those of third parties, including as a result of cybersecurity incidents;

•Failures to safeguard personal information;

•Impacts of pandemics, natural disasters, terrorist activities, civil unrest, international hostilities and geopolitical events;

•Impacts of supply chain disruptions, rising inflation, slower growth or a recession;

•Failure to execute on strategic or operational plans;

•Effects of mergers and acquisitions and related integration;

•Effects of critical accounting policies and judgments;

•Effects of changes in or interpretations of tax laws and regulations;

•Management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputation risk; and

•The risks and uncertainties more fully discussed in the section entitled “Risk Factors” of U.S. Bancorp’s Form 10-K for the year ended December 31, 2023, and subsequent filings with the Securities and Exchange Commission.

Factors other than these risks also could adversely affect U.S. Bancorp’s results, and the reader should not consider these risks to be a complete set of all potential risks or uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date hereof, and U.S. Bancorp undertakes no obligation to update them in light of new information or future events.

U.S. Bancorp Third Quarter 2024 Results

Non-GAAP Financial Measures

In addition to capital ratios defined by banking regulators, U.S. Bancorp (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

•Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology, and

•Return on tangible common equity.

These 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 measures are not defined in generally accepted accounting principles (“GAAP”) or are not currently effective or defined in banking regulations. In addition, certain of these measures differ from currently effective capital ratios defined by banking regulations principally in that the currently effective ratios, which are subject to certain transitional provisions, temporarily exclude the full impact of the 2020 adoption of accounting guidance related to impairment of financial instruments based on the current expected credit losses methodology.

As a result, these 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, tangible efficiency ratio, net interest margin, and tax rate.

The adjusted noninterest expense, adjusted net income, and adjusted diluted earnings per common share exclude notable items. Management uses these measures in their analysis of the Company’s performance and believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods.

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 press release in their entirety, and not to rely on any single financial measure. A table follows that shows the Company’s calculation of these non-GAAP financial measures.

CONSOLIDATED STATEMENT OF INCOME

(Dollars and Shares in Millions, Except Per Share Data)

Three Months Ended

Nine Months Ended

(Unaudited)

Interest Income

Loans

Loans held for sale

Investment securities

Other interest income

Total interest income

Interest Expense

Deposits

Short-term borrowings

Long-term debt

Total interest expense

Net interest income

Provision for credit losses

Net interest income after provision for credit losses

Noninterest Income

Card revenue

Corporate payment products revenue

Merchant processing services

Trust and investment management fees

Service charges

Commercial products revenue

Mortgage banking revenue

Investment products fees

Securities gains (losses), net

—

Other

Total noninterest income

Noninterest Expense

Compensation and employee benefits

Net occupancy and equipment

Professional services

Marketing and business development

Technology and communications

Other intangibles

Merger and integration charges

—

Other

Total noninterest expense

Income before income taxes

Applicable income taxes

Net income

Net (income) loss attributable to noncontrolling interests

(8)

(1)

Net income attributable to U.S. Bancorp

Net income applicable to U.S. Bancorp common shareholders

Earnings per common share

Diluted earnings per common share

Dividends declared per common share

Average common shares outstanding

Average diluted common shares outstanding

CONSOLIDATED ENDING BALANCE SHEET

(Dollars in Millions)

Assets

(Unaudited)

(Unaudited)

Cash and due from banks

Investment securities

Held-to-maturity

Available-for-sale

Loans held for sale

Loans

Commercial

Commercial real estate

Residential mortgages

Credit card

Other retail

Total loans

Less allowance for loan losses

Net loans

Premises and equipment

Goodwill

Other intangible assets

Other assets

Total assets

Liabilities and Shareholders' Equity

Deposits

Noninterest-bearing

Interest-bearing

Total deposits

Short-term borrowings

Long-term debt

Other liabilities