U.S. Bancorp · Earnings release

2Q25 Key Financial Data

2Q25 Financial Highlights

PROFITABILITY METRICS

•Net income of $1,815 million, an increase of 13.2% year-over-year

•Diluted earnings per common share of $1.11, compared with $0.97 diluted earnings per common share in the second quarter of 2024

•Return on tangible common equity of 18.0%, return on average assets of 1.08%, and efficiency ratio of 59.2%

•Positive operating leverage of 250 basis points on a year-over-year basis, excluding securities gains (losses), and as adjusted for the notable item in the second quarter of 2024

•Net revenue of $7,004 million, an increase of 2.0% year-over-year, including an increase of 4.6% in fee revenue

•Noninterest expense decrease of 0.2% on a year-over-year basis, as adjusted for the notable item in the second quarter of 2024, and 1.2% on a linked quarter basis

•Average total loans increased 1.0% on a year-over-year basis and decreased 0.1% on a linked quarter basis, reflecting the impact of loan portfolio sales during the second quarter of 2025. Total average loans and loans held for sale increased 1.7% on a year-over-year basis and 0.7% on a linked quarter basis.

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 second quarter we posted diluted earnings per share of $1.11, delivered a return on tangible common equity of 18% and posted a return on average assets of 1.08%. Importantly, year-over-year top-line revenue growth, coupled with our continued expense discipline, resulted in 250 basis points of positive operating leverage, as adjusted, and an efficiency ratio of 59.2% for the quarter. Our results showcased continued momentum across several of our diversified fee income businesses, which now represent approximately 42% of company-wide revenue. Our fee growth was led by payment services revenue, trust and investment management fees, and treasury management fees, which benefited from greater interconnectedness across the franchise and self-funded investments in our organic growth. Our asset quality metrics held steady this quarter with a net charge-off ratio of 59 basis points, and our continued capital levels remain strong.

As we look ahead, we remain committed to executing on our strategic priorities and making disciplined progress towards achieving our medium-term financial targets. Our diversified business mix and sound risk management culture remain strengths, especially at a time of economic volatility. On behalf of all my U.S. Bank colleagues, I would like to thank our clients and shareholders, for their loyalty and support of our exceptional company."

— Gunjan Kedia, President and CEO, U.S. Bancorp

Business and Other Highlights

Elavon Jumps Two Spots in 2025 Nilson Report Ratings

Elavon, the merchant services payment provider of U.S. Bank, has moved up two spots in the 2025 Nilson Report to become the fifth-largest U.S. merchant acquirer and the second-largest bank-owned merchant acquirer as ranked by Mastercard and Visa purchase volume. Elavon processes more than $576 billion in transactions worldwide annually and provides payment processing to eight of the top 10 airlines globally and seven of the top 10 largest U.S. hotel brands.

U.S. Bank Completes First Fully Digital Trade Finance Transaction

U.S. Bank has completed its first trade finance collection transaction using a fully digital process, marking a step forward in the bank’s efforts to modernize trade and working capital for clients. U.S. Bank is the first U.S. bank to utilize the blockchain-based WaveBL platform, which supports encrypted document transfers between trading partners and their banks. Previously, a transaction like this would have required a courier to physically transport documents across continents, often taking several days. By contrast, the digital process reduced that timeline to minutes – eliminating delays, enhancing security and compliance, and avoiding disruptions from external events.

U.S. Bank and Fiserv to Create Integrated Agent Card Issuance

U.S. Bank and Fiserv are working together to integrate U.S. Bank’s Elan Financial Services credit card program into Fiserv’s Credit Choice solution. This will allow financial institutions to deliver a digital-first, branded agent-bank credit card program for consumer and small business cardholders. The enhanced platform will allow users to manage both debit and credit card accounts within a single digital interface, improving user experience and operational efficiency. Financial institutions will benefit from streamlined onboarding and servicing tools, while the rollout of new capabilities is expected to continue through 2025 and into early 2026.

U.S. Bank Expands Embedded Payments Suite to Power Efficient, Secure Transactions

U.S. Bank recently unveiled an expanded suite of embedded payment solutions. U.S. Bank Embedded Payment Solutions offer businesses across industries a powerful way to integrate efficient, secure payment capabilities directly into websites, apps, enterprise systems and fintech integrations. Building on Elavon’s success with tech-led embedded merchant acquiring solutions, this expansion is another step in U.S. Bank’s ongoing work to integrate payment capabilities into the software and platforms businesses rely on daily while enabling faster, easier and secure financial transactions.

Investor contact: George Andersen, George.Andersen@usbank.com | Media contact: Jeff Shelman, Jeffrey.Shelman@usbank.com

U.S. Bancorp Second Quarter 2025 Results

INCOME STATEMENT HIGHLIGHTS

($ in millions, except per share data)

ADJUSTED (a) (b)

Percent Change

Percent Change

Net interest income

.7

.7

Taxable-equivalent adjustment

—

—

Net interest income (taxable-equivalent basis)

.7

.7

Noninterest income

Total net revenue

.7

.7

Noninterest expense

(.8)

(.2)

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

(6)

(7)

(8)

(6)

(7)

(8)

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.

(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

.4

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

(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.

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

2

U.S. Bancorp Second Quarter 2025 Results

Net income attributable to U.S. Bancorp was $1,815 million for the second quarter of 2025, $212 million higher than the $1,603 million for the second quarter of 2024 and $106 million higher than the $1,709 million for the first quarter of 2025. Diluted earnings per common share was $1.11 in the second quarter of 2025, compared with $0.97 in the second quarter of 2024 and $1.03 in the first quarter of 2025. The second quarter of 2024 included a notable item of $19 million or ($0.01) per diluted common share, net-of-tax. Excluding the impact of the prior year quarter notable item, net income attributable to U.S. Bancorp for the second quarter of 2025 was $193 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 higher total net revenue, lower noninterest expense and lower provision for credit losses. Excluding the notable item in the prior year quarter, net income attributable to U.S. Bancorp in the second quarter of 2025 increased 11.9 percent compared with the second quarter of 2024. Net interest income increased 0.7 percent on a year-over-year taxable-equivalent basis, primarily due to the impact of fixed asset repricing, loan mix, and lower rates paid on interest-bearing deposits, partially offset by lower noninterest-bearing deposit balances. The net interest margin decreased to 2.66 percent in the second quarter of 2025 from 2.67 percent in the second quarter of 2024, driven by the factors described above.

Noninterest income increased 3.9 percent compared with a year ago driven by higher payment services revenue, trust and investment management fees, and other revenue, partially offset by lower mortgage banking revenue. Noninterest expense decreased 0.8 percent primarily due to lower compensation and employee benefits and other intangible expense, partially offset by higher technology and communications expense. Excluding the notable item in the prior year quarter, noninterest expense in the second quarter of 2025 decreased 0.2 percent compared with the second quarter of 2024. The provision for credit losses decreased $67 million (11.8 percent) compared with the second quarter of 2024, reflecting the impact of loan portfolio sales during the second quarter of 2025 and improved credit quality.

Net income attributable to U.S. Bancorp increased on a linked quarter basis primarily due to an increase in total net revenue, lower noninterest expense and lower provision for credit losses. Net interest income decreased 1.0 percent on a linked quarter taxable-equivalent basis primarily driven by competitive deposit pricing pressure and rotation into higher rate products. The net interest margin decreased to 2.66 percent in the second quarter of 2025 from 2.72 percent in the first quarter of 2025, driven by larger average assets due to the timing of loan sales in the quarter in addition to the factors mentioned above. Noninterest income in the second quarter of 2025 increased 3.1 percent from the first quarter of 2025 primarily due to higher payment services revenue, trust and investment management fees, and service charges, partially offset by net securities losses in the second quarter of 2025.

Noninterest expense in the second quarter of 2025 decreased by 1.2 percent from the first quarter of 2025 primarily due to lower compensation and employee benefits expense, and marketing and business development expense. The provision for credit losses decreased $36 million (6.7 percent) compared with the first quarter of 2025, reflecting the impact of loan portfolio sales during the second quarter of 2025 and improved credit quality, partially offset by higher commercial real estate net charge-offs.

3

U.S. Bancorp Second Quarter 2025 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 held for sale

Loans

Interest-bearing deposits with banks

Other earning assets

Earning assets

Interest-bearing liabilities

(a) Excludes unrealized gain (loss)

Net interest income on a taxable-equivalent basis in the second quarter of 2025 was $4,080 million, an increase of $28 million (0.7 percent) from the second quarter of 2024. The increase was primarily due to the impact of fixed asset repricing, loan mix, and lower rates paid on interest-bearing deposits, partially offset by lower noninterest-bearing deposit balances. Average earning assets were $4.5 billion (0.7 percent) higher than the second quarter of 2024, reflecting increases of $5.8 billion (3.5 percent) in average investment securities due to balance sheet repositioning, $6.3 billion (1.7 percent) in total average loans and loans held for sale, and $3.8 billion (32.6 percent) in average other earning assets, partially offset by a decrease of $11.5 billion (21.7 percent) in average interest-bearing deposits with banks. Second quarter of 2025 average loans held for sale reflected the impact of a portfolio of residential mortgages transferred to held for sale and subsequently sold during the period.

Net interest income on a taxable-equivalent basis decreased $42 million (1.0 percent) on a linked quarter basis primarily driven by competitive deposit pricing pressure and rotation into higher rate products. Average earning assets were $3.1 billion (0.5 percent) higher on a linked quarter basis, reflecting increases of $1.7 billion (1.0 percent) in average investment securities due to balance sheet repositioning, $2.5 billion (0.7 percent) in total average loans and loans held for sale, and $1.1 billion (7.7 percent) in other earning assets, partially offset by a decrease of $2.2 billion (5.0 percent) in average interest-bearing deposits with banks. Second quarter of 2025 average loans held for sale reflected the impact of a portfolio of residential mortgages transferred to held for sale and subsequently sold during the period.

The net interest margin in the second quarter of 2025 was 2.66 percent, compared with 2.67 percent in the second quarter of 2024 and 2.72 percent in the first quarter of 2025. The decrease in the net interest margin from the prior year and prior quarter was driven by the factors mentioned above.

4

U.S. Bancorp Second Quarter 2025 Results

AVERAGE LOANS

($ in millions)

Percent Change

YTD

YTD

Percent Change

Commercial

Lease financing

.3

.8

.8

Total commercial

Commercial mortgages

Construction and development

.1

Total commercial real estate

(.9)

Residential mortgages

(.7)

Credit card

.6

Retail leasing

Home equity and second mortgages

Other

Total other retail

Total loans

(.1)

Average total loans for the second quarter of 2025 were $3.8 billion (1.0 percent) higher than the second quarter of 2024. The increase was primarily due to higher total commercial loans (7.1 percent) and credit card loans (4.4 percent), partially offset by lower total commercial real estate loans (7.3 percent), residential mortgages (0.7 percent), and total other retail loans (5.1 percent). The increase in commercial loans was primarily due to growth in loans to financial institutions. The increase in credit card loans was primarily driven by customer account growth and higher spend volume. The decrease in commercial real estate loans was primarily due to loan workout activities and payoffs. The decrease in residential mortgages and other retail loans was primarily due to portfolio sales in the second quarter of 2025.

Average total loans were $499 million (0.1 percent) lower than the first quarter of 2025. The decrease was primarily due to lower residential mortgages (2.7 percent) and total other retail loans (1.7 percent), partially offset by higher total commercial loans (2.6 percent). Linked quarter changes were primarily driven by similar factors as the year-over-year changes.

5

U.S. Bancorp Second Quarter 2025 Results

AVERAGE DEPOSITS

($ in millions)

Percent Change

YTD

YTD

Percent Change

Noninterest-bearing deposits

(.7)

Interest-bearing savings deposits

Interest checking

Money market savings

Savings accounts

Total savings deposits

.3

Time deposits

(.2)

Total interest-bearing deposits

(.7)

.2

Total deposits

(.7)

(.7)

Average total deposits for the second quarter of 2025 were $11.0 billion (2.1 percent) lower than the second quarter of 2024. Average noninterest-bearing deposits decreased $4.3 billion (5.2 percent) reflecting balance decreases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking. Average total savings deposits decreased $6.1 billion (1.6 percent) driven by decreases within Wealth, Corporate, Commercial and Institutional Banking, partially offset by increases in Consumer and Business Banking. Average time deposits were $625 million (1.1 percent) lower than the second quarter of 2024 mainly 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 $3.6 billion (0.7 percent) from the first quarter of 2025. Average noninterest-bearing deposits decreased $579 million (0.7 percent) reflecting balance decreases within Wealth, Corporate, Commercial and Institutional Banking. Average total savings deposits decreased $4.5 billion (1.2 percent) driven by decreases within Wealth, Corporate, Commercial and Institutional Banking, partially offset by increases in Consumer and Business Banking. Average time deposits were $1.4 billion (2.6 percent) higher on a linked quarter basis due to increases within Consumer and Business Banking, partially offset by decreases within Wealth, Corporate, Commercial and Institutional Banking.

6

U.S. Bancorp Second Quarter 2025 Results

NONINTEREST INCOME

($ in millions)

Percent Change

YTD

YTD

Percent Change

Card revenue

Corporate payment products revenue

.5

Merchant processing services

Trust and investment management fees

Service charges

Capital markets revenue

Mortgage banking revenue

Investment products fees

Other

Total fee revenue

Securities gains (losses), net

—

nm

Total noninterest income

Second quarter noninterest income of $2,924 million was $109 million (3.9 percent) higher than the second quarter of 2024. The second quarter total fee revenue was $130 million (4.6 percent) higher than the prior year quarter. The increase was driven by higher payment services revenue, trust and investment management fees, service charges and other revenue, partially offset by lower mortgage banking revenue. Payment services revenue increased $31 million (2.9 percent) compared with the second quarter of 2024, due to increases in card revenue of $14 million (3.3 percent) mainly due to higher sales volume, and merchant processing services of $20 million (4.4 percent) due to favorable rates. Trust and investment management fees increased $54 million (8.3 percent) driven by favorable market conditions and business growth.

Service charges increased $14 million (4.3 percent) primarily due to higher treasury management fees. Other revenue increased $35 million (22.3 percent) due to higher tax credit investment activity. Mortgage banking revenue decreased $28 million (14.7 percent) primarily due to a gain on the sale of mortgage servicing rights in the prior year quarter.

Noninterest income was $88 million (3.1 percent) higher in the second quarter of 2025 compared with the first quarter of 2025. The second quarter total fee revenue was $145 million (5.1 percent) higher than linked quarter. The increase was driven by higher payment services revenue, trust and investment management fees, and service charges. Payment services revenue increased $106 million (10.6 percent) compared with the first quarter of 2025, due to increases in card revenue of $44 million (11.1 percent) due to higher sales volume and seasonality, and merchant processing services of $59 million (14.2 percent) due to seasonality and favorable rates. Trust and investment management fees increased $23 million (3.4 percent) due to favorable market conditions and business growth. Service charges increased $21 million (6.7 percent) primarily due to higher treasury management fees.

7

U.S. Bancorp Second Quarter 2025 Results

NONINTEREST EXPENSE

($ in millions)

Percent Change

YTD

YTD

Percent Change

Compensation and employee benefits

(.7)

Net occupancy and equipment

(.8)

Professional services

Marketing and business development

Technology and communications

.2

Other intangibles

.8

Other

(.3)

Total before notable items

(.2)

.4

Notable items

—

—

—

nm

—

nm

Total noninterest expense

(.8)

Second quarter noninterest expense of $4,181 million was $33 million (0.8 percent) lower than the second quarter of 2024. Excluding the notable item of $26 million in the second quarter of 2024, second quarter of 2025 noninterest expense decreased $7 million (0.2 percent) compared with the second quarter of 2024. The decrease was driven by lower compensation and employee benefits expense, net occupancy and equipment expense and other intangibles expense, partially offset by higher technology and communications expense, and other noninterest expense. Compensation and employee benefits expense decreased $19 million (0.7 percent) primarily due to cost savings from operational efficiencies, partially offset by merit increases. Net occupancy and equipment expense decreased $15 million (4.7 percent) due to cost savings from operational efficiencies. The increase in technology and communications expense of $25 million (4.9 percent) was due to investments in infrastructure and technology development.

Noninterest expense decreased $51 million (1.2 percent) from the first quarter of 2025. The decrease was primarily driven by lower compensation and employee benefits expense and marketing and business development expense. Compensation and employee benefits expense decreased $37 million (1.4 percent) primarily due to seasonally lower stock-based compensation and cost savings from operational efficiencies, partially offset by merit increases. Marketing and business development expense decreased $21 million (11.5 percent) primarily due to the charitable foundation contribution in the first quarter of 2025.

Provision for Income Taxes

The provision for income taxes for the second quarter of 2025 resulted in a tax rate of 21.6 percent on a taxable-equivalent basis (effective tax rate of 20.6 percent), compared with 22.7 percent on a taxable-equivalent basis (effective tax rate of 21.6 percent) in the second quarter of 2024, and 21.6 percent on a taxable-equivalent basis (effective tax rate of 20.5 percent) in the first quarter of 2025.

8

U.S. Bancorp Second Quarter 2025 Results

ALLOWANCE FOR CREDIT LOSSES

($ in millions)

% (a)

% (a)

% (a)

% (a)

% (a)

Balance, beginning of period

Net charge-offs

Commercial

Lease financing

6

4

6

8

8

Total commercial

Commercial mortgages

(5)

Construction and development

—

—

1

(6)

1

1

Total commercial real estate

(4)

Residential mortgages

(1)

—

—

—

(2)

(3)

(4)

Credit card

Retail leasing

8

5

3

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 Second Quarter 2025 Results

The Company’s provision for credit losses for the second quarter of 2025 was $501 million, compared with $537 million in the first quarter of 2025 and $568 million in the second quarter of 2024. The second quarter of 2025 provision was $36 million (6.7 percent) lower than the first quarter of 2025 and $67 million (11.8 percent) lower than the second quarter of 2024. The decrease in provision expense on a year-over-year basis was primarily driven by the impact of loan portfolio sales during the second quarter of 2025 and improved credit quality. The decrease in provision expense on a linked quarter basis was primarily driven by the impact of loan portfolio sales during the second quarter of 2025 and improved credit quality, partially offset by higher commercial real estate net charge-offs.

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

Total net charge-offs in the second quarter of 2025 were $554 million, compared with $547 million in the first quarter of 2025 and $538 million in the second quarter of 2024. The net charge-off ratio was 0.59 percent in the second quarter of 2025 and in the first quarter of 2025, compared with 0.58 percent in the second quarter of 2024. The increase in net charge-offs on a year-over-year basis primarily reflected higher net charge-offs on commercial real estate loans, partially offset by lower net charge-offs on commercial loans.

The allowance for credit losses was $7,862 million at June 30, 2025, compared with $7,915 million at March 31, 2025, and $7,934 million at June 30, 2024. The decrease in the allowance for credit losses on a year-over-year basis was primarily driven by improved credit quality and portfolio mix. The decrease in the allowance for credit losses on a linked quarter basis was primarily driven by the impact of loan portfolio sales during the second quarter of 2025 and improved credit quality. The ratio of the allowance for credit losses to period-end loans was 2.07 percent at June 30, 2025, compared with 2.07 percent at March 31, 2025, and 2.11 percent at June 30, 2024. The ratio of the allowance for credit losses to nonperforming loans was 480 percent at June 30, 2025, compared with 470 percent at March 31, 2025, and 438 percent at June 30, 2024.

Nonperforming assets were $1,680 million at June 30, 2025, compared with $1,727 million at March 31, 2025, and $1,852 million at June 30, 2024. The ratio of nonperforming assets to loans and other real estate was 0.44 percent at June 30, 2025, compared with 0.45 percent at March 31, 2025, and 0.49 percent at June 30, 2024. The decrease in nonperforming assets on a linked quarter basis was primarily due to lower commercial and commercial real estate nonperforming loans. The decrease in nonperforming assets on a year-over year basis was primarily due to lower commercial real estate nonperforming loans, partially offset by higher commercial nonperforming loans. Accruing loans 90 days or more past due were $966 million at June 30, 2025, compared with $796 million at March 31, 2025, and $701 million at June 30, 2024.

The increase in accruing loans 90 days or more past due on a quarter-over-quarter and year-over-year basis was primarily due to higher commercial real estate delinquencies that are primarily administrative in nature and higher residential mortgage delinquencies primarily related to forbearance extended to borrowers affected by California wildfires.

U.S. Bancorp Second Quarter 2025 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 Second Quarter 2025 Results

COMMON SHARES

(Millions)

Beginning shares outstanding

Shares issued for stock incentive plans,

acquisitions and other corporate purposes

—

4

2

1

—

Shares repurchased

(2)

(4)

(3)

—

—

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

Fully implemented common equity tier 1 capital ratio (a)

%

%

% (b)

% (b)

% (b)

Tier 1 capital ratio

Total risk-based capital ratio

Leverage ratio

Common equity to assets

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 transitional regulatory capital requirements related to the current expected credit losses methodology (a)

—

—

(a) Beginning January 1, 2025, the regulatory capital requirements fully reflect implementation related to the current expected credit losses methodology. Prior to 2025, the Company's capital ratios reflected certain transitional adjustments.

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

Total U.S. Bancorp shareholders’ equity was $61.4 billion at June 30, 2025, compared with $60.1 billion at March 31, 2025, and $56.4 billion at June 30, 2024. During 2024, the Company's Board of Directors authorized a share repurchase program for up to $5.0 billion of the Company's outstanding common stock effective September 13, 2024. The Company began repurchasing shares under this program, in addition to repurchases done in connection with its stock-based compensation plans, in the fourth quarter of 2024.

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 10.7 percent at June 30, 2025, compared with 10.8 percent at March 31, 2025, and 10.3 percent at June 30, 2024.

U.S. Bancorp Second Quarter 2025 Results

Investor Conference Call

On Thursday, July 17, 2025 at 7 a.m. CT, President and Chief Executive Officer Gunjan Kedia and Vice Chair and Chief Financial Officer John Stern will host a conference call to review the financial results. The live conference call will be available online or 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 Thursday, July 17, 2025. 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 approximately 70,000 employees and $686 billion in assets as of June 30, 2025, 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 2025 World’s Most Ethical Companies and one of Fortune’s most admired superregional banks. 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;

•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 trade policy, including the imposition of tariffs or the impacts of retaliatory tariffs;

•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;

•Increases in FDIC assessments, including 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;

U.S. Bancorp Second Quarter 2025 Results

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

•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, 2024, 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 Second Quarter 2025 Results

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,

•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 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 or were not effective for certain periods. In addition, certain capital measures related to prior periods are presented on the same basis as those in the current period. The effective capital ratios defined by banking regulations for these periods were subject to certain transitional provisions for the implementation of accounting guidance related to impairment of financial instruments based on the current expected credit losses methodology.

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, tangible efficiency ratio, net interest margin, and tax rate.

The adjusted noninterest expense, adjusted net income, adjusted diluted earnings per common share, and adjusted operating leverage 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

Six 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

Capital markets 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

(6)

(8)

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