US Bancorp : Q1 2026 U.S. Bancorp Earnings Conference Call Earnings Release

Published: 2026-04-16 06:48:15 ET USB

Published on 04/16/2026 at 06:48 am EDT

1Q26 Key Financial Data

PROFITABILITY METRICS

1Q26

4Q25

1Q25

Return on average assets (%)

1.15

1.19

1.04

Return on average common equity (%)

12.6

13.5

12.3

Return on tangible common equity (%)(a)

17.0

18.4

17.5

Net interest margin (%)

2.77

2.72

Efficiency ratio (%)(a)

58.2

57.4

60.8

INCOME STATEMENT(b)

1Q26

4Q25

1Q25

Net interest income (taxable-equivalent basis)

$4,291

$4,312

$4,122

Noninterest income

$2,997

$3,053

$2,836

Noninterest expense

$4,265

$4,227

$4,232

Net income attributable to U.S. Bancorp

$1,945

$2,045

$1,709

Diluted earnings per common share

$1.18

$1.26

$1.03

Dividends declared per common share

$.52

$.50

BALANCE SHEET(b)

1Q26

4Q25

1Q25

Average total loans

$393,560

$384,285

$379,028

Average total deposits

$515,119

$515,142

$506,534

Net charge-off ratio (%)

.56

.54

.59

Book value per common share (period end)

$37.93

$37.55

$34.16

Tangible book value per common share (period end)(a)

$29.56

$29.12

$25.64

Basel III standardized CET1 (%)(c)

10.8

See Non-GAAP Financial Measures reconciliation on page 16

Dollars in millions, except per share data

CET1 = Common equity tier 1 capital ratio

1Q26 Financial Highlights

Net revenue of $7,288 million, including

year-over-year increases of 4.1% in net interest income (taxable-equivalent basis) and 6.9% in fee revenue

Net income of $1,945 million, an increase of 14% year-over-year

Diluted earnings per common share of

$1.18, an increase of 15% year-over-year

Return on average assets of 1.15% and efficiency ratio of 58.2%, both improved on a year-over-year basis

Positive operating leverage of 440 basis points from the prior year quarter

Net interest margin of 2.77%, an increase of 5 basis points on a year-over-year basis

Noninterest expense relatively stable year-over-year

CET1 capital ratio of 10.8% at March 31, 2026

Average total loans increased 3.8% on a year-over-year basis and 2.4% on a linked quarter basis

Average total deposits increased 1.7% on a year-over-year basis

CEO Commentary

"In the first quarter, we delivered diluted earnings per share of $1.18, up 15% year-over-year, and a return on tangible common equity of 17%. Strong revenue growth drove 440 basis points of positive operating leverage, as ongoing investments for growth and continued cost savings drove 260 basis points of

year-over-year improvement in our efficiency ratio. Net interest income growth of 4.1% compared with the prior year was supported by robust loan growth in priority areas, including commercial and credit card, and record consumer deposits. Fee revenue increased 6.9% year-over-year, reflecting improved payments performance and continued momentum across capital markets and investment services businesses. Credit quality and capital levels remain healthy and strong.

These results demonstrate continued execution within our medium-term financial target ranges and strong momentum across the franchise. Recently announced partnerships with nationally recognized brands such as Amazon and the NFL reinforce the scale, relevance, and growth potential of our diversified business model. With disciplined risk management and consistent execution, we are positioned to deliver sustainable returns and long-term value. On behalf of my U.S. Bank colleagues, I thank our clients and shareholders for their continued trust and support."

- Gunjan Kedia, CEO, U.S. Bancorp

Business and Other Highlights

Amazon and U.S. Bank Launch New Small Business Credit Cards

Amazon announced it is transitioning its small business credit card portfolio to

U.S. Bank and the Mastercard network, introducing a new Prime Business Card and a new Amazon Business Card available this spring. The Prime Business Card will offer Prime members 5% back on Amazon purchases, while the Amazon Business Card will provide 3% back for customers without a Prime membership, with both cards featuring enhanced rewards for off-Amazon spending, flexible credit terms, and no annual fees. Designed to integrate seamlessly with Amazon Business purchasing and spend management tools, the new cards aim to help small businesses better manage cash flow and earn rewards wherever they shop. Issued by U.S. Bank, the partnership expands its small business payments offerings while leveraging Mastercard's global network, security, and data-driven capabilities to deliver greater value, simplicity, and control for small business customers.

U.S. Bank and NFL Announce Partnership Centered on Banking and Wealth Management

The NFL and U.S. Bank announced a new multi-year partnership naming U.S. Bank an official bank and wealth management sponsor of the league, building on a trusted relationship that spans more than 20 years. The agreement includes U.S. Bank becoming the presenting sponsor of the Super Bowl MVP Award beginning with Super Bowl LXI and a top-tier sponsor of the NFL FLAG Championships. A key focus of the partnership is player financial empowerment, with U.S. Bank creating a Financial Edge™ program to support athletes throughout their careers and beyond. The program will address areas such as cash flow, saving strategies, long-term wealth, entrepreneurship, and life after football. The partnership also reflects U.S. Bank's extensive experience in sports finance and includes plans for a joint corporate social responsibility initiative and future fan-focused activations.

INCOME STATEMENT HIGHLIGHTS

($ in millions, except per share data)

1Q 4Q 1Q

2026 2025 2025

Percent Change

1Q26 vs 1Q26 vs 4Q25 1Q25

Net interest income

$4,263

$4,284

$4,092

(.5)

4.2

Taxable-equivalent adjustment

(6.7)

Net interest income (taxable-equivalent basis)

4,291

4,312

4,122

(.5)

4.1

Noninterest income

2,997

3,053

2,836

(1.8)

5.7

Total net revenue

7,288

7,365

6,958

(1.0)

4.7

Noninterest expense

4,265

4,227

4,232

Income before provision and income taxes

3,023

3,138

2,726

(3.7)

10.9

Provision for credit losses

576

577

537

(.2)

7.3

Income before taxes

2,447

2,561

2,189

(4.5)

11.8

Income taxes and taxable-equivalent adjustment

497

510

473

(2.5)

5.1

Net income

1,950

2,051

1,716

(4.9)

13.6

Net (income) loss attributable to noncontrolling interests

(5)

(6)

(7)

16.7

28.6

Net income attributable to U.S. Bancorp

$1,945

$2,045

$1,709

(4.9)

13.8

Net income applicable to U.S. Bancorp common shareholders

$1,841

$1,965

$1,603

(6.3)

14.8

Diluted earnings per common share

$1.18

$1.26

$1.03

(6.3)

14.6

Net income attributable to U.S. Bancorp was $1,945 million for the first quarter of 2026, $236 million higher than the first quarter of 2025 and $100 million lower than the fourth quarter of 2025. Diluted earnings per common share was $1.18 in the first quarter of 2026, compared with $1.03 in the first quarter of 2025 and $1.26 in the fourth quarter of 2025.

The year-over-year increase in net income attributable to U.S. Bancorp was driven by higher total net revenue, partially offset by higher noninterest expense and higher provision for credit losses. Net interest income increased 4.1 percent on a taxable-equivalent basis, primarily due to loan growth, improved earning asset mix, and fixed asset repricing, while net interest margin increased to 2.77 percent from 2.72 percent. Noninterest income increased 5.7 percent, reflecting higher revenue across most categories. Noninterest expense increased 0.8 percent primarily due to higher marketing and business development expense and technology and communications expense, partially offset by lower compensation and employee benefits expense. The provision for credit losses increased 7.3 percent, primarily due to loan portfolio growth.

Compared with the fourth quarter of 2025, net income attributable to U.S. Bancorp decreased primarily due to lower total net revenue and higher noninterest expense. Net interest income decreased 0.5 percent on a taxable-equivalent basis, primarily driven by fewer days in the quarter and deposit seasonality, partially offset by growth in loans, while net interest margin was stable. Noninterest income decreased primarily due to seasonally lower card revenue and capital markets revenue, as well as losses from repositioning a portion of the securities portfolio, partially offset by higher mortgage banking revenue. Noninterest expense increased 0.9 percent reflecting higher compensation and employee benefits expense and higher marketing and business development expense. The provision for credit losses remained relatively stable with a decrease of 0.2 percent.

NET INTEREST INCOME

(Taxable-equivalent basis; $ in millions)

1Q 2026

4Q 2025

1Q 2025

Change

1Q26 vs

4Q25

1Q26 vs

1Q25

Components of net interest income

Income on earning assets

$ 7,866

$ 7,951

$ 7,546

$ (85)

$ 320

Expense on interest-bearing liabilities

3,575

3,639

3,424

(64)

151

Net interest income

$ 4,291

$ 4,312

$ 4,122

$ (21)

$ 169

Average yields and rates paid Earning assets yield

5.09

5.10

4.99

(.01)

.10

Rate paid on interest-bearing liabilities

2.81

2.83

2.75

(.02)

.06

Gross interest margin

2.28

2.27

2.24

.01

.04

Net interest margin

2.77

2.72

.05

Average balances Investment securities(a)

$171,471

$172,039

$171,178

$ (568)

$ 293

Loans held for sale

2,326

2,775

1,823

(449)

503

Loans

393,560

384,285

379,028

9,275

14,532

Interest-bearing deposits with banks

38,855

42,705

43,735

(3,850)

(4,880)

Other earning assets

17,950

18,413

14,466

(463)

3,484

Earning assets

624,162

620,217

610,230

3,945

13,932

Interest-bearing liabilities

515,578

509,378

504,023

6,200

11,555

(a) Excludes unrealized gain (loss)

Net interest income on a taxable-equivalent basis was $4,291 million in the first quarter of 2026, an increase of $169 million (4.1 percent) compared with the first quarter of 2025. The increase primarily reflected loan growth, improved earning asset mix, and benefits from fixed asset repricing. Average earning assets were $13.9 billion (2.3 percent) higher than the first quarter of 2025, reflecting increases of $14.5 billion (3.8 percent) in average loans, and $3.5 billion (24.1 percent) in average other earning assets, partially offset by a decrease of $4.9 billion (11.2 percent) in average interest-bearing deposits with banks.

On a linked quarter basis, net interest income on a taxable-equivalent basis decreased $21 million (0.5 percent) primarily driven by fewer days in the quarter and deposit seasonality, partially offset by loan growth. Average earning assets were $3.9 billion (0.6 percent) higher on a linked quarter basis, reflecting an increase of $9.3 billion (2.4 percent) in average loans, partially offset by a decrease of $3.9 billion (9.0 percent) in average interest-bearing deposits with banks.

Net interest margin was 2.77 percent in the first quarter of 2026, compared with 2.72 percent in the first quarter of 2025 and 2.77 percent in the fourth quarter of 2025. The increase in net interest margin compared with the prior year quarter was primarily due to the benefits from fixed asset repricing. Net interest margin was stable on a linked quarter basis.

AVERAGE LOANS

($ in millions)

1Q 2026 4Q 2025 1Q 2025

Percent Change

1Q26 vs 1Q26 vs 4Q25 1Q25

Commercial(a)

$145,397

$138,807

$130,252

4.7

11.6

Lease financing

4,436

4,307

4,199

3.0

5.6

Total commercial(a)

149,833

143,114

134,451

4.7

11.4

Commercial mortgages

39,969

38,698

38,624

3.3

3.5

Construction and development

9,439

9,792

10,266

(3.6)

(8.1)

Total commercial real estate

49,408

48,490

48,890

1.9

1.1

Residential mortgages

116,690

115,390

118,844

1.1

(1.8)

Credit card(a)

37,341

37,019

35,083

6.4

Retail leasing

3,525

3,572

3,990

(1.3)

(11.7)

Home equity and second mortgages

13,972

13,922

13,542

3.2

Other

22,791

22,778

24,228

(5.9)

Total other retail

40,288

40,272

41,760

(3.5)

Total loans

$393,560

$384,285

$379,028

2.4

3.8

(a) Effective January 1, 2026, U.S. Bancorp reclassified small business credit card loans from the 'Commercial' loan portfolio to the 'Credit card' loan portfolio. Prior period balances have been conformed to current period presentation.

Average total loans for the first quarter of 2026 increased $14.5 billion (3.8 percent) compared with the first quarter of 2025. The increase was driven by higher total commercial loans and credit card loans, partially offset by declines in residential mortgages and total other retail loans. Growth in total commercial loans reflected higher loans to financial institutions, partially offset by lower corporate and other commercial loans, while credit card loan growth reflected higher sales volume. Declines in residential mortgages and other retail loans were primarily due to loan sales in the second quarter of 2025.

Compared with the fourth quarter of 2025, average total loans increased $9.3 billion (2.4 percent) driven by higher total commercial loans and residential mortgages. Growth in total commercial loans reflected higher corporate loans and loans to financial institutions, while the increase in residential mortgages was primarily driven by originations.

AVERAGE DEPOSITS

($ in millions)

1Q 2026 4Q 2025 1Q 2025

Percent Change

1Q26 vs 1Q26 vs 4Q25 1Q25

Noninterest-bearing deposits

$80,628

$83,295

$79,696

(3.2)

1.2

Interest-bearing savings deposits

Interest checking

130,600

131,055

125,651

(.3)

3.9

Money market savings

188,986

186,119

195,442

1.5

(3.3)

Savings accounts

68,305

64,207

50,271

6.4

35.9

Total savings deposits

387,891

381,381

371,364

1.7

4.5

Time deposits

46,600

50,466

55,474

(7.7)

(16.0)

Total interest-bearing deposits

434,491

431,847

426,838

1.8

Total deposits

$515,119

$515,142

$506,534

1.7

Average total deposits in the first quarter of 2026 increased $8.6 billion (1.7 percent) compared with the first quarter of 2025. Average noninterest-bearing deposits grew, driven by higher balances in Wealth, Corporate, Commercial and Institutional Banking, partially offset by declines in Consumer and Business Banking. Average total savings deposits increased driven by growth in Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking, partially offset by decreases in Treasury and Corporate Support. Average time deposits declined mainly within Wealth, Corporate, Commercial and Institutional Banking and Treasury and Corporate Support, partially offset by increases in Consumer and Business Banking.

Changes in time deposits reflect balances managed as an alternative to other funding sources, based on relative pricing and liquidity considerations.

Compared with the fourth quarter of 2025, average total deposits were relatively flat. Seasonal decreases in average noninterest-bearing deposits within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking, and lower average time deposits, reflecting decreases in Consumer and Business Banking and Treasury and Corporate Support, were partially offset by an increase in average total savings deposits driven by increases in Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking.

NONINTEREST INCOME(a)

($ in millions) Percent Change

2026

2025

1Q26 vs

4Q25

1Q26 vs

1Q25

Card revenue(b)

$391

$427

$374

(8.4)

4.5

Corporate payment and treasury management revenue(b)(c)

408

396

400

3.0

2.0

Merchant processing services

436

440

415

(.9)

5.1

Trust and investment management fees

745

756

680

(1.5)

9.6

Lending and deposit-related fees(c)(d)

294

302

266

(2.6)

10.5

Capital markets revenue(d)(e)

377

389

292

(3.1)

29.1

Mortgage banking revenue

161

130

173

23.8

(6.9)

Investment products fees

101

(4.0)

11.5

Other(e)

123

109

149

12.8

(17.4)

Total fee revenue

3,032

3,050

2,836

(.6)

6.9

Securities gains (losses), net

(35)

Total noninterest income

$2,997

$3,053

$2,836

(1.8)

5.7

Effective January 1, 2026, U.S. Bancorp made changes and reclassifications to certain fee revenue items. Prior period balances have been conformed to current period presentation to reflect the reclassifications described below:

'Corporate payment products revenue' has been renamed 'Corporate payment and treasury management revenue', and 'Service charges' has been renamed 'Lending and deposit-related fees'.

Stored-value card revenue was reclassified from 'Card revenue' to 'Corporate payment and treasury management revenue'.

Treasury management services revenue was reclassified from 'Lending and deposit-related fees' to 'Corporate payment and treasury management revenue'.

Loan and leasing fees was reclassified from 'Capital markets revenue' to 'Lending and deposit-related fees'.

Impact Finance tax credit investment syndication fee revenue and related fees was reclassified from 'Other' noninterest income to 'Capital markets revenue'.

First quarter noninterest income of $2,997 million increased $161 million (5.7 percent) compared with the first quarter of 2025. The increase was driven by higher card revenue reflecting increased credit card sales volume, higher merchant processing services revenue due to favorable rates, higher trust and investment management fees driven by business growth and favorable market conditions, higher lending and deposit-related fees, and higher capital markets revenue primarily due to higher client-related derivative activity, corporate bond underwriting fees and favorable market conditions. The increases were partially offset by lower other revenue, and losses from repositioning a portion of the securities portfolio.

Compared with the fourth quarter of 2025, noninterest income decreased $56 million (1.8 percent). The decrease was driven by lower card revenue due to seasonality, losses from repositioning a portion of the securities portfolio, and lower capital markets revenue due to the timing of tax credit syndications, partially offset by higher corporate bond underwriting fees and favorable market conditions. These decreases were partially offset by higher mortgage banking revenue due to the change in fair value of mortgage servicing rights, net of hedging activities.

NONINTEREST EXPENSE

($ in millions)

Compensation and employee benefits $2,628 $2,529 $2,637 3.9 (.3) Net occupancy and equipment 304 320 306 (5.0) (.7)

Professional services 92 144 98 (36.1) (6.1)

Marketing and business development 217 187 182 16.0 19.2

Technology and communications 573 584 533 (1.9) 7.5

Other intangibles 110 126 123 (12.7) (10.6)

Other 341 337 353 1.2 (3.4)

Total noninterest expense $4,265 $4,227 $4,232 .9 .8

First quarter noninterest expense was $4,265 million, an increase of $33 million (0.8 percent), compared with the first quarter of 2025. The increase was driven by marketing and business development expense primarily due to increased initiatives, as well as higher technology and communications expense reflecting investments in product and technology development. These increases were partially offset by lower compensation and employee benefits expense, primarily due to cost savings from operational efficiencies, partially offset by merit increases, lower other intangibles expense, and lower other noninterest expense.

Compared with the fourth quarter of 2025, noninterest expense increased $38 million (0.9 percent). The increase was driven by seasonally higher compensation and employee benefits expense and higher marketing and business development expense.

These increases were partially offset by lower net occupancy and equipment expense, related to the timing of projects, and lower professional services expense, due to the timing of initiatives.

Provision for Income Taxes

The provision for income taxes for the first quarter of 2026 resulted in a tax rate of 20.3 percent on a taxable-equivalent basis (effective tax rate of 19.4 percent), compared with 21.6 percent on a taxable-equivalent basis (effective tax rate of 20.5 percent) in the first quarter of 2025, and 19.9 percent on a taxable-equivalent basis (effective tax rate of 19.0 percent) in the fourth quarter of 2025.

ALLOWANCE FOR CREDIT LOSSES

($ in millions)

2026

%(a)

2025

%(a)

2025

%(a)

2025

%(a)

2025

%(a)

Balance, beginning of period

$7,947

$7,897

$7,862

$7,915

$7,925

Net charge-offs

Commercial(b)

117

.33

101

.29

.07

.18

.30

Lease financing

.37

.46

.65

.57

.39

Total commercial(b)

121

.33

106

.29

.09

.19

101

.30

Commercial mortgages

.02

(3)

(.03)

103

1.06

.60

(5)

(.05)

Construction and development

(10)

(.43)

.04

Total commercial real estate

(8)

(.07)

(3)

(.02)

103

.85

.47

(4)

(.03)

Residential mortgages

(1)

(2)

(.01)

(1)

Credit card(b)

365

3.96

358

3.84

346

3.80

380

4.30

387

4.47

Retail leasing

2.07

1.89

1.81

1.04

1.32

Home equity and second mortgages

.03

(2)

(.06)

(1)

(.03)

Other

.89

.87

.76

.73

.85

Total other retail

.69

.67

.57

.52

.61

Total net charge-offs

546

.56

527

.54

536

.56

554

.59

547

.59

Provision for credit losses

576

577

571

501

537

Balance, end of period

$7,977

$7,947

$7,897

$7,862

$7,915

Components

Allowance for loan losses

$7,646

$7,605

$7,557

$7,537

$7,584

Liability for unfunded credit commitments

331

342

340

325

331

Total allowance for credit losses

$7,977

$7,947

$7,897

$7,862

$7,915

Gross charge-offs

$683

$651

$669

$683

$690

Gross recoveries

$137

$124

$133

$129

$143

Allowance for credit losses as a percentage of Period-end loans (%)

2.00

2.03

2.06

2.07

Nonperforming loans (%)

536

514

490

480

470

Nonperforming assets (%)

522

500

477

468

458

Annualized and calculated on average loan balances.

Effective January 1, 2026, U.S. Bancorp reclassified small business credit card loans from the 'Commercial' loan portfolio to the 'Credit card' loan portfolio. Prior period balances have been conformed to current period presentation.

The provision for credit losses was $576 million for the first quarter of 2026, compared with $577 million in the fourth quarter of 2025 and $537 million in the first quarter of 2025. The increase on a year-over-year basis was primarily driven by loan portfolio growth. The provision on a linked quarter basis was relatively stable. The Company continues to monitor economic uncertainty related to interest rates, inflationary pressures, including those related to evolving trade policy and geopolitical events, as well as other economic factors that may affect the financial strength of corporate and consumer borrowers.

Total net charge-offs were $546 million in the first quarter of 2026, compared with $527 million in the fourth quarter of 2025 and

$547 million in the first quarter of 2025. The net charge-off ratio was 0.56 percent compared with 0.54 percent in the fourth quarter of 2025 and 0.59 percent in the first quarter of 2025. The increase in net charge-offs on a linked quarter basis was driven by higher net charge-offs on commercial loans and credit card portfolios. The decrease in net charge-offs on a year-over-year basis reflected lower net charge-offs on credit card portfolios, partially offset by increased net charge-offs on commercial loans.

The allowance for credit losses was $7,977 million at March 31, 2026, compared with $7,947 million at December 31, 2025, and

$7,915 million at March 31, 2025. The increase in the allowance for credit losses on a linked quarter basis was primarily driven by loan portfolio growth. The increase in the allowance for credit losses on a year-over-year basis was primarily driven by loan portfolio growth, partially offset by improved credit quality. The allowance for credit losses represented 2.00 percent of period-end loans at March 31, 2026 and 536 percent of nonperforming loans at March 31, 2026.

Nonperforming assets were $1,528 million at March 31, 2026, compared with $1,590 million at December 31, 2025, and

$1,727 million at March 31, 2025. The decrease on a linked quarter basis was primarily due to the resolution of commercial nonperforming loans, while the decrease from the prior year was primarily due to the resolution of commercial real estate nonperforming loans, partially offset by higher commercial nonperforming loans and residential mortgages. The ratio of nonperforming assets to loans and other real estate was 0.38 percent at March 31, 2026. Accruing loans 90 days or more past due were $847 million at March 31, 2026, compared with $853 million at December 31, 2025, and $796 million at March 31, 2025. The linked quarter decrease in accruing loans 90 days or more past due was primarily due to lower residential mortgage delinquencies, partially offset by higher commercial loan delinquencies, while the increase from the prior year was primarily due to higher residential mortgage delinquencies remaining on accrual with support from strong housing values and higher commercial loan delinquencies.

DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES

(Percent)

Mar 31

2026

Dec 31

2025

Sep 30

2025

Jun 30

2025

Mar 31

2025

Delinquent loan ratios - 90 days or more past due

Commercial(a)

.02

.01

Commercial real estate

.03

.04

.28

.01

Residential mortgages

.23

.25

.26

.28

.19

Credit card(a)

1.29

1.27

1.26

1.40

Other retail

.13

.14

Total loans

.21

.22

.25

.21

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

Commercial(a)

.44

.50

.52

.42

.46

Commercial real estate

1.07

1.09

1.24

1.86

1.62

Residential mortgages

.36

.38

.40

.31

Credit card(a)

1.29

1.27

1.26

1.40

Other retail

.52

.53

.51

.50

Total loans

.58

.61

.64

.68

.65

ASSET QUALITY(a)

($ in millions)

Mar 31

2026

Dec 31

2025

Sep 30

2025

Jun 30

2025

Mar 31

2025

Nonperforming loans

Commercial

$622

$695

$708

$548

$589

Lease financing

Total commercial

648

717

733

575

616

Commercial mortgages

488

504

558

732

745

Construction and development

Total commercial real estate

522

518

579

763

780

Residential mortgages

159

151

143

145

141

Credit card

Other retail

159

161

155

154

148

Total nonperforming loans

1,488

1,547

1,610

1,637

1,685

Other real estate

Other nonperforming assets

Total nonperforming assets

$1,528

$1,590

$1,654

$1,680

$1,727

Accruing loans 90 days or more past due

$847

$853

$840

$966

$796

Nonperforming assets to loans plus ORE (%)

.38

.41

.43

.44

.45

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

COMMON SHARES

(Millions)

2026

2025

Beginning shares outstanding

1,555

1,556

1,558

1,560

Shares issued for stock incentive plans,

acquisitions and other corporate purposes

Shares repurchased

(5)

(3)

(2)

(4)

Ending shares outstanding

1,555

1,556

1,558

1,560

CAPITAL POSITION

Preliminary Data

($ in millions)

Mar 31

2026

Dec 31

2025

Sep 30

2025

Jun 30

2025

Mar 31

2025

Total U.S. Bancorp shareholders' equity

$65,786

$65,193

$63,340

$61,438

$60,096

Basel III Standardized Approach

Common equity tier 1 capital

$52,648

$51,665

$50,587

$49,382

$48,482

Tier 1 capital

59,899

58,917

57,839

56,630

55,736

Total risk-based capital

69,163

68,087

66,820

65,752

64,989

Common equity tier 1 capital ratio

10.8

10.9

10.7

10.8

Tier 1 capital ratio

12.3

12.4

12.3

12.4

Total risk-based capital ratio

14.2

14.4

14.3

14.4

Leverage ratio

8.8

8.7

8.6

8.5

8.4

Common equity to assets

8.4

8.1

8.0

7.9

Tangible common equity to tangible assets(a)

6.7

6.4

6.1

6.0

Tangible common equity to risk-weighted assets(a)

9.4

9.3

9.0

8.9

(a) See Non-GAAP Financial Measures reconciliation on page 16.

Total U.S. Bancorp shareholders' equity was $65.8 billion at March 31, 2026, compared with $65.2 billion at December 31, 2025, and $60.1 billion at March 31, 2025. During the first quarter of 2026, the Company continued share repurchases under its $5.0 billion common stock repurchase authorization, including repurchases in connection with its stock-based compensation plans.

All regulatory capital 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 10.8 percent at March 31, 2026, unchanged from December 31, 2025, and March 31, 2025.

Investor Conference Call

On Thursday, April 16, 2026 at 7 a.m. CT, 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 beginning at approximately 10 a.m. CT on April 16, 2026. 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

Headquartered in Minneapolis, U.S. Bancorp is the parent company of U.S. Bank National Association, the fifth-largest commercial bank in the United States. The company's three major business lines serve 15 million clients throughout the United States, Canada and Europe, and its team of nearly 70,000 people invest their hearts and minds to power human potential every day. Ranked 105th on the Fortune 500, U.S. Bancorp is deeply respected for its culture and long-term stewardship and admired for its diversified business mix and product capabilities.

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, targets, initiatives 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, political 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;

Changes to statutes, regulations, or regulatory policies or practices, including capital and liquidity requirements and any credit card interest rate caps, 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 or reform the financial system and the effectiveness of such actions;

Turmoil and volatility in the financial services industry;

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 competitive pressure;

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, including due to the continuation of the conflict in the Middle East;

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, such as the pending acquisition of Condor Trading LP and its subsidiaries, including BTIG, LLC, and related integration, including that the expected benefits may take longer than anticipated to achieve or may not be achieved in entirety or at all and the costs relating to the combination may be greater than expected;

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, and liquidity 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, 2025, 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.

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. 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, operating leverage, net interest margin, and tax rate.

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) (Unaudited)

Three Months Ended March 31,

2026 2025

Interest Income

Loans

$5,526

$5,533

Loans held for sale

Investment securities

1,303

1,308

Other interest income

974

647

Total interest income

7,838

7,516

Interest Expense

Deposits

2,284

2,511

Short-term borrowings

645

249

Long-term debt

646

664

Total interest expense

3,575

3,424

Net interest income

4,263

4,092

Provision for credit losses

576

537

Net interest income after provision for credit losses

3,687

3,555

Noninterest Income(a)

Card revenue(b)

391

374

Corporate payment and treasury management revenue(b)(c)

408

400

Merchant processing services

436

415

Trust and investment management fees

745

680

Lending and deposit-related fees(c)(d)

294

266

Capital markets revenue(d)(e)

377

292

Mortgage banking revenue

161

173

Investment products fees

Securities gains (losses), net

(35)

Other(e)

123

149

Total noninterest income

2,997

2,836

Noninterest Expense

Compensation and employee benefits

2,628

2,637

Net occupancy and equipment

304

306

Professional services

Marketing and business development

217

182

Technology and communications

573

533

Other intangibles

110

123

Other

341

353

Total noninterest expense

4,265

4,232

Income before income taxes

2,419

2,159

Applicable income taxes

469

443

Net income

1,950

1,716

Net (income) loss attributable to noncontrolling interests

(5)

(7)

Net income attributable to U.S. Bancorp

$1,945

$1,709

Net income applicable to U.S. Bancorp common shareholders

$1,841

$1,603

Earnings per common share

$1.18

$1.03

Diluted earnings per common share

$1.18

$1.03

Dividends declared per common share

$.52

$.50

Average common shares outstanding

1,554

1,559

Average diluted common shares outstanding

1,555

1,560

'Corporate payment products revenue' has been renamed 'Corporate payment and treasury management revenue', and 'Service charges' has been renamed 'Lending and deposit-related fees'.

Stored-value card revenue was reclassified from 'Card revenue' to 'Corporate payment and treasury management revenue'.

Treasury management services revenue was reclassified from 'Lending and deposit-related fees' to 'Corporate payment and treasury management revenue'.

Loan and leasing fees was reclassified from 'Capital markets revenue' to 'Lending and deposit-related fees'.

Impact Finance tax credit investment syndication fee revenue and related fees was reclassified from 'Other' noninterest income to 'Capital markets revenue'.

CONSOLIDATED ENDING BALANCE SHEET

(Dollars in Millions)

March 31,

December 31,

March 31,

(Unaudited)

2026

2025

Assets

Cash and due from banks

$48,420

$46,890

$50,013

Investment securities

Held-to-maturity

75,442

76,170

78,008

Available-for-sale

93,464

90,838

86,774

Loans held for sale

Loans

2,928

2,538

1,746

Commercial(a)

154,095

148,161

138,331

Commercial real estate

49,971

48,920

48,334

Residential mortgages

117,285

115,885

118,907

Credit card(a)

37,654

38,031

34,973

Other retail

40,791

40,338

41,274

Total loans

399,796

391,335

381,819

Less allowance for loan losses

(7,646)

(7,605)

(7,584)

Net loans

392,150

383,730

374,235

Premises and equipment

3,819

3,768

3,582

Goodwill

12,625

12,635

12,555

Other intangible assets

4,799

4,904

5,381

Other assets

67,351

70,872

64,195

Total assets

$700,998

$692,345

$676,489

Deposits

Noninterest-bearing

$85,300

$84,116

$84,086

Interest-bearing

442,878

438,100

428,439

Total deposits

528,178

522,216

512,525

Short-term borrowings

17,859

17,162

17,158

Long-term debt

61,361

60,764

59,859

Other liabilities

27,353

26,552

26,389

Total liabilities

634,751

626,694

615,931

Shareholders' equity

Preferred stock

6,808

Common stock

Capital surplus

8,623

8,728

8,678

Retained earnings

81,944

80,906

77,691

Less treasury stock

(24,387)

(24,283)

(24,060)

Accumulated other comprehensive income (loss)

(7,223)

(6,987)

(9,042)

Total U.S. Bancorp shareholders' equity

65,786

65,193

60,096

Noncontrolling interests

461

458

462

Total equity

66,247

65,651

60,558

Total liabilities and equity

$700,998

$692,345

$676,489

NON-GAAP FINANCIAL MEASURES

March 31,

December 31,

September 30,

June 30,

March 31,

(Dollars in Millions, Unaudited)

2026

2025

Total equity

$66,247

$65,651

$63,798

$61,896

$60,558

Preferred stock

(6,808)

Noncontrolling interests

(461)

(458)

(462)

Common equity(a)

58,978

58,385

56,532

54,630

53,288

Goodwill (net of deferred tax liability)(1)

(11,588)

(11,603)

(11,613)

(11,521)

Intangible assets (net of deferred tax liability), other than mortgage servicing rights

(1,429)

(1,507)

(1,605)

(1,699)

(1,761)

Tangible common equity(b)

45,961

45,275

43,324

41,318

40,006

Total assets(c)

700,998

692,345

695,357

686,370

676,489

Goodwill (net of deferred tax liability)(1)

(11,588)

(11,603)

(11,613)

(11,521)

Intangible assets (net of deferred tax liability), other than mortgage servicing rights

(1,429)

(1,507)

(1,605)

(1,699)

(1,761)

Tangible assets(d)

687,981

679,235

682,149

673,058

663,207

Risk-weighted assets, determined in accordance with prescribed regulatory capital

requirements effective for the Company(e)

487,958

480,382

465,092

459,521

450,290

Common shares outstanding(f)

1,555

1,556

1,558

1,560

Ratios *

Common equity to assets(a)/(c)

8.4%

8.1%

8.0%

7.9%

Tangible common equity to tangible assets(b)/(d)

6.7

6.4

6.1

6.0

Tangible common equity to risk-weighted assets(b)/(e)

9.4

9.3

9.0

8.9

Tangible book value per common share(b)/(f)

$29.56

$29.12

$27.84

$26.52

$25.64

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Net income applicable to U.S. Bancorp common shareholders

$1,841

$1,965

$1,893

$1,733

$1,603

Intangibles amortization (net-of-tax)

100

Net income applicable to U.S. Bancorp common shareholders, excluding intangibles

amortization

1,928

2,065

1,992

1,831

1,700

Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangible amortization(g)

7,819

8,193

7,903

7,344

6,894

Average total equity

66,315

65,048

63,101

61,356

60,071

Average preferred stock

(6,808)

Average noncontrolling interests

(458)

(457)

(460)

Average goodwill (net of deferred tax liability)(1)

(11,601)

(11,599)

(11,609)

(11,544)

(11,513)

Average intangible assets (net of deferred tax liability), other than mortgage servicing rights

(1,474)

(1,568)

(1,659)

(1,734)

(1,806)

Average tangible common equity(h)

45,974

44,615

42,567

40,813

39,484

Return on tangible common equity(g)/(h)

17.0%

18.4%

18.6%

18.0%

17.5%

Net interest income

$4,263

$4,284

$4,222

$4,051

$4,092

Taxable-equivalent adjustment(2)

Net interest income, on a taxable-equivalent basis

4,291

4,312

4,251

4,080

4,122

Net interest income, on a taxable-equivalent basis (as calculated above)

4,291

4,312

4,251

4,080

4,122

Noninterest income

2,997

3,053

3,078

2,924

2,836

Less: Securities gains (losses), net

(35)

(7)

(57)

Total net revenue, excluding net securities gains (losses)(i)

7,323

7,362

7,336

7,061

6,958

Noninterest expense(j)

4,265

4,227

4,197

4,181

4,232

Efficiency ratio(j)/(i)

58.2%

57.4%

57.2%

59.2%

60.8%

* Preliminary data. Subject to change prior to filings with applicable regulatory agencies.

Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements.

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.

NON-GAAP FINANCIAL MEASURES

Three Months Ended

(Dollars in Millions, Unaudited)

March 31,

2026

March 31,

2025

Percent Change

Net interest income

$4,263

$4,092

Taxable-equivalent adjustment(1)

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)

7,323

6,958

5.2%

(a)

Noninterest expense

4,265

4,232

0.8%

(b)

Operating leverage(a) - (b)

4.4%

(1) 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.

WEALTH, CORPORATE, COMMERCIAL AND INSTITUTIONAL BANKING

CONSUMER AND BUSINESS BANKING PAYMENT SERVICES

TREASURY AND CORPORATE SUPPORT

BUSINESS SEGMENT FINANCIAL PERFORMANCE

Preliminary data

($ in millions)

Business Segment

Net Income Attributable to U.S. Bancorp

1Q 4Q 1Q

2026 2025 2025

Percent Change

1Q26 vs

4Q25

1Q26 vs

1Q25

Wealth, Corporate, Commercial and Institutional Banking

$1,434

$1,288

$1,205

11.3

19.0

Consumer and Business Banking

616

542

597

13.7

3.2

Payment Services

231

124

232

86.3

(.4)

Treasury and Corporate Support

(336)

(325)

(3.4)

Consolidated Company

$1,945

$2,045

$1,709

(4.9)

13.8

Income Before Provision

and Taxes

Percent Change

1Q26 vs

2026

2025

4Q25

1Q25

Wealth, Corporate, Commercial and Institutional Banking

$1,977

$1,874

$1,649

5.5

19.9

Consumer and Business Banking

894

799

858

11.9

4.2

Payment Services

655

627

626

4.5

4.6

Treasury and Corporate Support

(503)

(162)

(407)

(23.6)

Consolidated Company

$3,023

$3,138

$2,726

(3.7)

10.9

Business Segments

The Company's major business segments are Wealth, Corporate, Commercial and Institutional Banking, Consumer and Business Banking, Payment Services, and Treasury and Corporate Support. 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. 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

Preliminary

Data

($ in millions)

2026

2025

Percent Change 1Q26 vs 1Q26 vs

4Q25 1Q25

Condensed Income Statement

Net interest income (taxable-equivalent basis)

$1,874

$1,798

$1,709

4.2

9.7

Noninterest income

1,608

1,614

1,422

(.4)

13.1

Total net revenue

3,482

3,412

3,131

2.1

11.2

Noninterest expense

1,505

1,538

1,482

(2.1)

1.6

Income before provision and taxes

1,977

1,874

1,649

5.5

19.9

Provision for credit losses

157

(58.6)

54.8

Income before income taxes

1,912

1,717

1,607

11.4

19.0

Income taxes and taxable-equivalent adjustment

478

429

402

11.4

18.9

Net income

1,434

1,288

1,205

11.3

19.0

Net (income) loss attributable to noncontrolling interests

Net income attributable to U.S. Bancorp

$1,434

$1,288

$1,205

11.3

19.0

Average Balance Sheet Data

Loans

$203,834

$193,976

$182,191

5.1

11.9

Other earning assets

15,378

13,378

13,142

14.9

17.0

Goodwill

4,826

4,824

Other intangible assets

682

726

863

(6.1) (21.0)

Assets

256,107

242,907

230,619

5.4

11.1

Noninterest-bearing deposits

57,812

59,499

56,001

(2.8)

3.2

Interest-bearing deposits

229,770

226,306

219,157

1.5

4.8

Total deposits

287,582

285,805

275,158

4.5

Total U.S. Bancorp shareholders' equity

24,200

24,511

23,508

(1.3)

2.9

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 generated $1,977 million of income before provision and taxes in the first quarter of 2026, compared with $1,649 million in the first quarter of 2025, and contributed $1,434 million of the Company's net income in the first quarter of 2026.

Total net revenue increased compared with the first quarter of 2025 driven by higher net interest income due to higher deposit balances, as well as an increase in noninterest income, primarily due to higher trust and investment management fees and higher capital markets revenue.

Noninterest expense increased 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 compared with the first quarter of 2025, primarily due to loan growth.

Disclaimer

U.S. Bancorp published this content on April 16, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 16, 2026 at 10:47 UTC.