U.S. Bancorp (USB)

Business

From the annual report on Form 10-K for the fiscal year ended December 31, 2025 (accession 0000036104-26-000011), including the 2025 Annual Report to Shareholders incorporated into that filing as Exhibit 13.

U.S. Bancorp is a financial services holding company that provides a full range of banking and financial services, lending and depository services, cash management, capital markets, and trust and investment management, and also engages in credit card services, merchant and ATM processing, mortgage banking, insurance, brokerage and leasing. It is registered as a bank holding company under the Bank Holding Company Act of 1956 and has elected to be treated as a financial holding company.

Substantially all of the business runs through the banking subsidiary, U.S. Bank National Association (USBNA), which held all of the Company's consolidated deposits of $522.2 billion at December 31, 2025. Commercial and consumer lending is offered principally to customers within the Company's domestic markets, to domestic customers with foreign operations, and to large national customers in targeted industries such as healthcare, utilities, oil and gas, and state and municipal government. Lending products span traditional credit, credit cards, lease financing, import/export trade, asset-backed lending and agricultural finance. Depository products include checking, savings and time certificate accounts. Capital markets, treasury management and receivable lock-box collection are sold to corporate and governmental customers, and the bank and trust subsidiaries provide asset management and fiduciary services to individuals, estates, foundations, corporations and charitable organizations. Non-banking subsidiaries sell investment and insurance products and provide fund administration services.

Distribution is a national branch and digital network: 2,075 branches across 26 states and 4,428 ATMs as of December 31, 2025, supplemented by online and mobile banking, telephone service, mortgage loan production offices, and indirect origination through correspondents, brokers and other lending sources. The Company is one of the largest providers of corporate and purchasing card services and of corporate trust services in the United States. Merchant processing is provided directly to merchants domestically and in Canada and parts of Europe, and corporate trust and fund administration services are also provided in Europe; these foreign operations are described in the filing as not significant. The Company employed 68,520 people globally at December 31, 2025.

Revenue comes from two roughly complementary streams. In fiscal 2025 net interest income was $16.6 billion ($16.8 billion on a taxable-equivalent basis) and noninterest income was $11.9 billion, for total net revenue of $28.7 billion on a taxable-equivalent basis. Within fee revenue of $12.0 billion, the largest lines were trust and investment management fees ($2,869 million), merchant processing services ($1,792 million), card revenue ($1,735 million), capital markets revenue ($1,633 million), service charges ($1,302 million), corporate payment products revenue ($765 million), mortgage banking revenue ($645 million) and investment products fees ($375 million).

Segments

• Wealth, Corporate, Commercial and Institutional Banking, 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.
• Consumer and Business Banking, consumer banking, small business banking and consumer lending, delivered through branches, telephone servicing, online channels, direct mail, ATMs, mobile devices, distributed mortgage loan officers, and intermediary relationships including auto dealerships, mortgage banks and strategic business partners.
• Payment Services, consumer and business credit cards, stored-value cards, debit cards, corporate, government and purchasing card services, and merchant processing.
• Treasury and Corporate Support, investment portfolios, funding, capital management, interest rate risk management, income taxes not allocated to the business segments (including most tax-advantaged project investments), and residual corporate expenses.

Effective January 1, 2026 the Company renamed and reclassified several fee lines (corporate payment products revenue became corporate payment and treasury management revenue and absorbed treasury management and stored-value card revenue; service charges became lending and deposit-related fees and absorbed loan and leasing fees; capital markets revenue absorbed tax credit investment syndication revenue). During 2026 it also moved the Impact Finance business unit from Treasury and Corporate Support into Wealth, Corporate, Commercial and Institutional Banking, and moved debit card revenue from Payment Services into Consumer and Business Banking. Prior periods were recast on a comparable basis.

BTIG

In January 2026 the Company announced a definitive agreement to acquire BTIG for a purchase price of up to $1 billion, a targeted $725 million at closing ($362.5 million of cash and 6,600,594 shares of common stock) plus up to $275 million of additional cash consideration payable over three years against defined performance targets. BTIG is a global financial services firm specializing in institutional trading, investment banking, research and related brokerage services. The transaction closed on June 1, 2026; its final terms and effect on the current period are set out under "Current quarter" below.

Regulation

As a bank holding company with over $100 billion of total consolidated assets, U.S. Bancorp is subject to the enhanced prudential standards of the Dodd-Frank Act as applied to "Category III" institutions under the federal banking agencies' tailoring rules, and would move to the more stringent Category II framework if four-quarter average total consolidated assets reach $700 billion or average cross-jurisdictional activity reaches $75 billion. Minimum ratios are 4.5 percent common equity tier 1 (CET1), 6.0 percent tier 1, 8.0 percent total capital, a 4.0 percent tier 1 leverage ratio and a 3.0 percent supplementary leverage ratio; the Company exceeded all of these at December 31, 2025. The stress capital buffer applicable to the Company was 2.6 percent as of December 31, 2025, down from 3.1 percent a year earlier. As Category III organizations with less than $75 billion of weighted short-term wholesale funding, the Company and USBNA qualify for liquidity coverage ratio and net stable funding ratio requirements calibrated at 85 percent of the full standards. USBNA holds an "Outstanding" Community Reinvestment Act rating from its most recent examination (covering January 1, 2016 through December 31, 2020). The Company submitted its triennial resolution plan in October 2025; USBNA must file its next full resolution plan on or before July 1, 2026. Open rulemakings that would matter to the Company include the revised Basel III Endgame proposal, the long-term debt requirement proposed in August 2023, proposed changes to the stress capital buffer averaging methodology and the supervisory stress testing framework, and the OCC's December 2025 proposal to raise the heightened-standards asset threshold from $50 billion to $700 billion.

Risk factors

From the "Risk Factors" section of the 2025 Annual Report incorporated into the Form 10-K for the fiscal year ended December 31, 2025 (accession 0000036104-26-000011).

Economic and market conditions. Earnings depend on general business and economic conditions, the level and volatility of rates, inflation, real estate prices, unemployment, household income, consumer spending, capital markets liquidity and customer deposit behavior. Weak conditions have in the past reduced loan origination and utilization and raised delinquencies and defaults, and would impair the value of securities and other loan-supported instruments. Changes in domestic economic, labor, trade, immigration or tax policy could increase charge-offs and provisions. Changes in United States trade policy, including tariffs and retaliatory tariffs, with further change expected from federal judicial decisions including a U.S. Supreme Court ruling in February 2026, have already impaired some customers' ability to service debt and complicate their business planning.

Interest rates and asset values. Net interest income is the largest earnings driver and is sensitive to market rates. Falling rates or a flatter curve compress net interest income; to prevent deposit outflows the bank has raised and may again raise deposit rates, and customers shifting from noninterest-bearing to interest-bearing accounts raises funding costs. Higher rates can suppress originations, reduce market liquidity and stress variable-rate borrowers. Market fluctuations can materially change the value of securities, derivatives and other instruments the Company owns or makes markets in, and losses in the securities portfolio, even without an earnings or capital effect, could cause uninsured, uncollateralized depositors to question the bank's stability. Leasing residual values are a further exposure.

Operations, technology and security. The Company reports a continuing high number of attacks on its information systems and notes that AI tools let attackers automate large-scale attacks, find vulnerabilities faster and build convincing deepfake social-engineering schemes. Third parties, exchanges, clearinghouses, payment and ATM networks, intermediaries and technology vendors, and their own subcontractors, are an additional source of operational and security risk, and a third party may not disclose an incident promptly. The Company has suffered and expects to continue to suffer losses reimbursing customers for fraud arising from breaches at other companies where its cardholders' data was exposed. It also flags human error, unauthorized transactions, control failures, employee misconduct and failures of business continuation and disaster recovery.

Models, data and AI. The Company relies on models, including AI and machine-learning models, for credit quality assessment, market and interest rate risk, capital stress testing, financial crime and fraud detection, allowance estimation and valuation. Flawed design, invalid assumptions, unreliable inputs or improper use could distort business decisions and public or regulatory reporting, and regulators may restrict capital distributions if they judge the underlying models unreliable. Separately, the Company's own use of AI carries risks of biased or opaque outputs, legal liability and regulatory scrutiny in a rapidly evolving and non-uniform legal landscape. Failure to manage data effectively would impair risk management, reporting and surveillance.

Technological competition and deposit substitution. The industry is undergoing rapid technological change; the Company must fund continual product and platform development without assurance of recovering the cost. Fintechs and embedded-finance providers, some with bank, non-depository national bank or industrial loan charters, compete with fewer regulatory constraints and lower cost structures, and regulators have signalled a desire to process charter applications faster. Under the GENIUS Act, signed into law in July 2025, consumers and businesses may treat payment stablecoins as a substitute for bank deposits; if USBNA cannot develop stablecoin capabilities to meet demand for deposit alternatives it could see reduced deposit levels.

Regulatory and legal. Banking regulation exists to protect depositors, the Deposit Insurance Fund and the financial system, not shareholders, and constrains lending, capital structure, investments, dividends, buybacks and acquisitions. The current administration is implementing a materially different regulatory reform agenda, and changes in agency personnel, interpretations and judicial deference add uncertainty. Enforcement exposure is specifically called out for sanctions and BSA/AML compliance, the filing cites the 2018 action against the Company and USBNA, with cryptocurrency and stablecoin adoption raising know-your-customer and transaction-monitoring complexity. Confidential supervisory rating downgrades could restrict expansionary activity. The Company is a defendant in many proceedings and expects a continuing high level of litigation and government scrutiny. Mortgage representation-and-warranty repurchase demands and servicing/master-servicing indemnification claims (primarily from GSEs) are separate named exposures.

Credit and mortgage. Credit performance drives results. Named pressure points are high commercial real estate vacancy rates, geopolitical conflict, trade policy and tariffs, elevated rates and inflation causing borrowers to be unable to refinance at maturity. The commercial book includes loans to non-depository financial institutions (NDFIs), which are supported by financial collateral assets and are therefore potentially more sensitive to broad macroeconomic conditions. Concentration risk is flagged by loan type, industry, borrower type and geography, with California singled out for real estate and collateral-value deterioration including from wildfires. The mortgage servicing rights portfolio, carried at a fair value of $3.2 billion as of December 31, 2025, makes mortgage banking revenue volatile quarter to quarter, and reduced GSE purchases or limited secondary-market access would cut origination and servicing revenue and funding capacity.

Liquidity. Liquidity depends on retaining low-cost customer deposits. Deposits can move faster than in the past because of mobile banking, multiple banking relationships and the speed at which information, including false information, spreads through social media. Customers may also shift balances into higher-yielding alternatives, or into cryptocurrencies, stablecoins or other digital assets. Access to Federal Reserve and FHLB liquidity facilities can be conditioned on sound financial condition or minimum supervisory ratings. The holding company relies on dividends from USBNA, which federal and state law limit without regulatory approval.

Capital and distributions. Stringent capital and liquidity standards, including the stress capital buffer, could require the Company to raise capital, increase securities holdings, divest assets or otherwise change its capital and liquidity posture in ways that are dilutive or that limit dividends, buybacks, investment and lending. Federal Reserve action and external events have limited capital distributions before and could again. A long-term debt requirement would change the funding mix and could compress net interest margin.

Competitive and strategic, including BTIG. The Company may not realize the full value of its strategic plans, may need to lower prices to hold share, and may not complete or realize the benefits of acquisitions. The filing names the BTIG acquisition specifically: closing conditions may not be satisfied or waived; the pendency of the deal may cause distraction, reduced productivity or lower morale and the loss of key employees; and, because the acquisition takes the Company into additional non-U.S. jurisdictions, it brings unfamiliar regulatory regimes, heightened local scrutiny and increased risk of fines, penalties or operational restrictions. More generally, integration has presented and may present challenges from differences in systems, operations, policies, management teams and cultures, and future acquisitions may be paid for in stock and dilute existing holders.

Accounting and tax. Critical accounting policies, the allowance for credit losses, fair value estimation, MSR valuation and income taxes, require difficult, subjective judgments, and materially different amounts could be reported on different assumptions. Investments in tax-advantaged affordable housing, community development and renewable energy projects earn their return principally through tax credits that remain subject to recapture if project-level compliance requirements are not met.

General. The risk management framework may not anticipate every risk; the Company must attract and retain skilled employees in a competitive market with rising wage pressure; and a credit rating downgrade could reduce liquidity, prompt deposit outflows, raise funding costs and limit capital markets access.

Management's discussion and analysis, fiscal 2025

From the "Management's Discussion and Analysis" in the 2025 Annual Report incorporated into the Form 10-K for the fiscal year ended December 31, 2025 (accession 0000036104-26-000011).

Net income attributable to U.S. Bancorp was $7.6 billion in 2025, or $4.62 per diluted common share, against $6.3 billion, or $3.79 per diluted share, in 2024, a 21.9 percent increase in diluted EPS. Total net revenue of $28,656 million was $1.2 billion (4.4 percent) higher than 2024, and income before taxes rose to $9,633 million from $8,029 million.

Revenue. Net interest income on a taxable-equivalent basis was $16,765 million, up $356 million (2.2 percent), on loan growth, fixed asset repricing and lower rates paid on interest-bearing deposits. The net interest margin was 2.72 percent versus 2.70 percent in 2024: the earning-asset yield fell 19 basis points to 5.05 percent while the rate paid on interest-bearing liabilities fell 27 basis points to 2.82 percent. Average earning assets were $615.4 billion, up $8.7 billion (1.4 percent), with average loans up $6.4 billion (1.7 percent) to $380.3 billion and average investment securities up $5.7 billion to $172.4 billion. Average total deposits were essentially flat at $509.1 billion, down $397 million (0.1 percent), as noninterest-bearing and time deposits declined and total savings deposits grew. Noninterest income rose $845 million (7.6 percent) to $11,891 million, led by trust and investment management fees, payment services revenue, capital markets revenue and other noninterest income, and helped by a smaller net securities loss ($61 million versus $154 million).

Expense. Noninterest expense fell $351 million (2.0 percent) to $16,837 million, reflecting the absence of the prior year's merger and integration charges, lower compensation and employee benefits ($10,327 million versus $10,554 million) and lower other intangibles amortization, partly offset by higher technology and communications ($2,211 million) and marketing and business development ($705 million) spending. The efficiency ratio improved to 58.6 percent from 62.3 percent.

Credit. The allowance for credit losses was $7.9 billion at December 31, 2025, roughly flat year over year. The provision for credit losses was $2,186 million, down $52 million (2.3 percent), reflecting improved credit quality and the impact of second-quarter 2025 loan sales. Net charge-offs of $2.2 billion were up $12 million (0.6 percent), or 0.57 percent of average loans versus 0.58 percent. Nonperforming assets fell $242 million (13.2 percent) to $1.6 billion on lower nonperforming commercial real estate loans.

Balance sheet. Period-end loans were $391.3 billion, up $11.5 billion (3.0 percent) from 2024: commercial loans rose $14.5 billion (10.4 percent), largely on growth in loans to financial institutions, and credit card loans rose $1.9 billion (6.2 percent), while residential mortgages fell $2.9 billion (2.5 percent) and other retail loans fell $2.0 billion (4.7 percent), both reflecting second-quarter 2025 portfolio sales. Commercial real estate was roughly flat at $48.9 billion.

Capital and returns. Return on average assets was 1.12 percent and return on average common equity 13.0 percent (return on tangible common equity 18.1 percent). The CET1 ratio was 10.8 percent at December 31, 2025, up 20 basis points year over year, and all regulatory ratios exceeded "well-capitalized" requirements. $3.7 billion of earnings was returned to shareholders through dividends and buybacks; dividends declared were $2.04 per share. Book value per share was $37.55 and tangible book value per share $29.12. During the fourth quarter of 2025 the Company repurchased 2,546,428 shares at an average $48.08, leaving approximately $4,389 million available under the $5.0 billion repurchase program authorized effective September 13, 2024.

Segment results, 2025 versus 2024.

• Wealth, Corporate, Commercial and Institutional Banking contributed $4.6 billion of net income, down $135 million (2.8 percent). Net revenue fell $68 million (0.6 percent): taxable-equivalent net interest income fell $399 million (5.2 percent) on higher funding costs, while noninterest income rose $331 million (7.3 percent) on trust and investment management fees and treasury management fees. Noninterest expense fell $49 million (0.9 percent); the credit provision rose $161 million (41.8 percent) on loan growth and increased reserves on certain assets.
• Consumer and Business Banking contributed $1.7 billion, down $164 million (8.7 percent). Net revenue fell $358 million (3.9 percent), with taxable-equivalent net interest income down $377 million (4.9 percent) on deposit mix changes and second-quarter 2025 loan sales, and noninterest income up $19 million (1.2 percent) on mortgage banking gain-on-sale activity. Noninterest expense fell $195 million (3.0 percent); the provision rose $56 million (30.8 percent).
• Payment Services contributed $1.3 billion, up $195 million (17.9 percent). Net revenue rose $381 million (5.4 percent), taxable-equivalent net interest income up $217 million (7.7 percent) on higher average loan balances, loan fees and lower funding costs, noninterest income up $164 million (3.9 percent) on merchant processing and card revenue. Noninterest expense rose $164 million (4.1 percent); the provision fell $44 million (2.7 percent).
• Treasury and Corporate Support recorded a net loss of $61 million, against a net loss of $1.4 billion in 2024. Net revenue rose $1.2 billion, with taxable-equivalent net interest income up $915 million (55.1 percent) on lower funding costs and fixed asset repricing, and noninterest income up $331 million (46.8 percent). Noninterest expense fell $271 million (21.2 percent) on the absence of 2024 merger and integration and FDIC special assessment charges, and the provision was $225 million lower.

Business segments are charged a managerial tax rate of 25.0 percent, with the residual to reach the consolidated effective rate held in Treasury and Corporate Support.

Current quarter, second quarter of 2026

From the quarterly report on Form 10-Q for the quarterly period ended June 30, 2026 (accession 0000036104-26-000044), with the quarterly results release and investor materials furnished on Form 8-K dated July 16, 2026 (accession 0000036104-26-000039).

Net income attributable to U.S. Bancorp was $2.2 billion in the second quarter of 2026, or $1.35 per diluted common share, compared with $1.8 billion, or $1.11, in the second quarter of 2025, a 21.6 percent increase in diluted EPS. For the first six months, net income was $4.1 billion, or $2.53 per diluted share, against $3.5 billion, or $2.14. Total net revenue in the quarter was $7,712 million, which the Company describes as a record, made up of taxable-equivalent net interest income of $4,387 million (up 7.5 percent year over year) and noninterest income of $3,325 million (up 13.7 percent).

Drivers. Net interest income rose $310 million (7.7 percent) in the quarter and $481 million (5.9 percent) in the first half on loan growth, improved earning asset mix and fixed asset repricing; the net interest margin was 2.79 percent, 13 basis points better than a year earlier. Noninterest income rose $401 million (13.7 percent) in the quarter and $562 million (9.8 percent) in the half, on higher fee revenue across most categories plus the BTIG contribution. Noninterest expense rose $247 million (5.9 percent) in the quarter to $4,428 million and $280 million (3.3 percent) in the half, reflecting BTIG, higher compensation and employee benefits, higher technology and communications expense and higher marketing and business development expense. Average loans rose $27.0 billion (7.1 percent) year over year to $405.5 billion on commercial, commercial real estate and credit card growth; average deposits rose $12.2 billion (2.4 percent) to $515.1 billion on savings balances, partly offset by lower time deposits. Return on average assets was 1.26 percent, return on average common equity 14.0 percent, return on tangible common equity 18.7 percent and the efficiency ratio 57.1 percent, each better than both the prior quarter and the prior-year quarter, with 400 basis points of positive year-over-year operating leverage.

BTIG acquisition (completed in the quarter). On June 1, 2026 the Company acquired BTIG for a purchase price of approximately $395 million of cash and 6.6 million shares of common stock paid at closing, with up to an additional $275 million of cash consideration payable over the following three years subject to achievement of defined performance targets. The acquired entity is Condor Trading LP and its subsidiaries, including BTIG, LLC. The Company recorded approximately $1.5 billion of assets, including intangibles, and approximately $786 million of liabilities, with preliminary goodwill of $613 million attributed primarily to expected revenue and cost synergies and not deductible for income tax purposes; those amounts remain subject to adjustment for a year after closing. BTIG contributed approximately $98 million of fee revenue and $84 million of noninterest expense in the single month of June, at an approximate 14 percent pre-tax margin, and its results sit in the Wealth, Corporate, Commercial and Institutional Banking segment. Management describes BTIG's institutional equity sales and trading, equity capital markets, electronic trading and M&A advisory businesses as complementary to the Company's fixed income, currency and commodities strength, and states that capital markets revenue is about 7 percent of total revenue and about 15 percent of fee revenue today against a target of 10 percent or more of total company revenue over time.

Credit quality. The allowance for credit losses was $8.0 billion at June 30, 2026 against $7.9 billion at December 31, 2025, but fell as a share of period-end loans to 1.94 percent from 2.03 percent. The provision for credit losses rose $37 million (7.4 percent) in the quarter and $76 million (7.3 percent) in the half, primarily on loan growth. Net charge-offs fell $18 million in the quarter and $19 million in the half, on lower commercial real estate and credit card charge-offs partly offset by higher commercial charge-offs; the net charge-off ratio was 0.53 percent in the quarter and 0.55 percent in the half, versus 0.59 percent for both prior-year periods. Nonperforming assets fell $244 million (15.3 percent) from year-end to $1.3 billion, driven by lower nonperforming commercial loans.

Balance sheet and capital. Total assets were $725.9 billion at June 30, 2026 versus $692.3 billion at December 31, 2025. Total loans were $410.3 billion (from $391.3 billion), total deposits $532.1 billion (from $522.2 billion), short-term borrowings $37.3 billion (from $17.2 billion) and long-term debt $58.7 billion (from $60.8 billion). Goodwill rose to $13.2 billion from $12.6 billion with the BTIG purchase. Total U.S. Bancorp shareholders' equity was $67.4 billion against $65.2 billion at year-end, helped by earnings and by the common shares issued as BTIG consideration and reduced by dividends paid. The CET1 ratio was 10.8 percent at both June 30, 2026 and December 31, 2025; the tier 1 ratio was 12.2 percent, total risk-based capital 14.4 percent, leverage 8.9 percent and supplementary leverage 7.2 percent. Book value per common share was $38.91 and tangible book value per common share $30.04. The Company returned $1.0 billion in the quarter and $2.1 billion in the first half through dividends and repurchases, buying 3,560,020 shares in the quarter at an average $56.39 and leaving approximately $3,912 million of capacity under the $5.0 billion repurchase program.

Segment results, second quarter of 2026 versus second quarter of 2025 (on the recast 2026 segment definitions):

• Wealth, Corporate, Commercial and Institutional Banking, net income $1.5 billion in the quarter and $3.0 billion in the half, up $356 million (30.3 percent) and $588 million (24.5 percent). Net revenue rose $551 million (17.1 percent) in the quarter, with taxable-equivalent net interest income up $213 million (12.4 percent) on higher loan and deposit balances and noninterest income up $338 million (22.6 percent) on capital markets revenue including BTIG and on trust and investment management fees. Noninterest expense rose $125 million (8.5 percent); the provision fell $49 million (27.5 percent) on improving credit quality.
• Consumer and Business Banking, net income $589 million in the quarter and $1.2 billion in the half, down $27 million (4.4 percent) in the quarter and up $5 million (0.4 percent) in the half. Quarterly net revenue was essentially flat (down $3 million). Noninterest expense fell $7 million (0.5 percent) in the quarter; the provision rose $41 million in the quarter on higher net charge-offs and the effect of prior-year loan sales.
• Payment Services, net income $225 million in the quarter and $497 million in the half, down $10 million (4.3 percent) and up $3 million (0.6 percent). Net revenue rose $98 million (5.7 percent) in the quarter, with taxable-equivalent net interest income up $44 million (6.0 percent) and noninterest income up $54 million (5.5 percent) on card revenue, corporate payment and treasury management revenue and merchant processing. Noninterest expense rose $111 million (10.9 percent).
• Treasury and Corporate Support, net losses of $167 million in the quarter and $519 million in the half, against losses of $210 million and $521 million a year earlier. Quarterly net revenue rose $62 million (20.3 percent); noninterest expense rose $18 million (10.5 percent) and the provision rose $44 million (44.9 percent).

Guidance provided with the second-quarter results. For the third quarter of 2026 the Company guided to taxable-equivalent net interest income up 4 to 6 percent against third-quarter 2025 of $4,251 million, total fee revenue up 12 to 14 percent against $3,085 million, and total noninterest expense up approximately 8 percent against $4,197 million. For full-year 2026 it guided to total net revenue up 7 to 9 percent against fiscal 2025 taxable-equivalent net revenue of $28.7 billion (5 to 7 percent excluding BTIG) and positive operating leverage of approximately 200 basis points (300-plus basis points excluding BTIG), with BTIG expected to add roughly $200 million of quarterly net revenue at a 15 to 20 percent margin. Medium-term targets, defined as 2026 and 2027, are a return on average assets of 1.15 to 1.35 percent, a return on tangible common equity in the high teens, mid-single-digit fee revenue growth, an efficiency ratio in the mid-to-high 50s, continued positive operating leverage, and a CET1 ratio of approximately 10 percent.

Capital planning. On June 24, 2026 the Company announced that its stress capital buffer will remain unchanged at 2.6 percent until October 1, 2027, following the Federal Reserve's decision to maintain current stress-test-related buffer requirements until 2027 while public feedback on the supervisory models is considered. Combined with the 4.5 percent CET1 minimum, that requires a CET1 ratio at or above 7.1 percent through the period. The Company also announced planned capital actions including a 3.8 percent increase in the quarterly common stock dividend, from $0.52 to $0.54 per share, subject to Board approval and effective in the third quarter of 2026. Dividends declared were $0.52 per common share in each of the first and second quarters of 2026.

Subsequent events

From the quarterly report on Form 10-Q for the quarterly period ended June 30, 2026 (accession 0000036104-26-000044) and the Form 8-K dated June 24, 2026 (accession 0000036104-26-000035).

The Company evaluated events occurring after June 30, 2026 through the date the consolidated financial statements were filed with the SEC and determined that none of those events required recognition or disclosure in the consolidated financial statements or related notes. No acquisition, divestiture, financing, borrowing or litigation outcome is disclosed as a post-period-end event in that filing.

Two previously announced items take effect after the close of the quarter. The quarterly common stock dividend is planned to rise from $0.52 to $0.54 per share, a 3.8 percent increase, subject to approval by the Board of Directors, effective in the third quarter of 2026. And the Company's stress capital buffer remains 2.6 percent until October 1, 2027, holding its effective CET1 minimum at 7.1 percent through that date.

Filings that contain financial statements

• Form 8-K, accession 0000036104-26-000039 (filed July 16, 2026), Exhibit 99.1 furnishes the second-quarter 2026 earnings release, with income statement, balance sheet and per-share data for the quarter ended June 30, 2026; Exhibit 99.2 furnishes the accompanying 2Q26 earnings supplement with additional detailed schedules.
• Form 8-K, accession 0000036104-26-000021 (filed April 16, 2026), Exhibit 99.1 furnishes the first-quarter 2026 earnings release (quarter ended March 31, 2026); Exhibit 99.2 furnishes the 1Q26 earnings supplement.
• Form 8-K, accession 0000036104-26-000005 (filed January 20, 2026), Exhibit 99.1 furnishes the fourth-quarter and full-year 2025 earnings release (period ended December 31, 2025), including full-year 2025 and 2024 comparatives; Exhibit 99.2 furnishes the 4Q25 earnings supplement.
• Form 8-K, accession 0000036104-25-000060 (filed October 16, 2025), Exhibit 99.1 furnishes the third-quarter 2025 earnings release (quarter ended September 30, 2025); Exhibit 99.2 furnishes the 3Q25 earnings supplement.
• Form 8-K, accession 0000036104-25-000044 (filed July 17, 2025), Exhibit 99.1 furnishes the second-quarter 2025 earnings release (quarter ended June 30, 2025); Exhibit 99.2 furnishes the 2Q25 earnings supplement.
• Form 10-Q, accession 0000036104-26-000044 (filed August 6, 2026), full unaudited consolidated financial statements (income statement, balance sheet, cash flows) for the quarter and six months ended June 30, 2026.
• Form 10-K, accession 0000036104-26-000011 (filed February 23, 2026), full audited consolidated financial statements for fiscal year 2025.

Mergers and acquisitions

BTIG acquisition, signed January 2026, closed June 1, 2026. On January 12, 2026, U.S. Bancorp entered into a definitive merger agreement to acquire Condor Trading LP and its subsidiaries, including BTIG, LLC, a financial services firm specializing in institutional equity sales and trading, investment banking, research and prime brokerage. Consideration was targeted at $725 million payable at closing ($362.5 million in cash and 6,600,594 shares of U.S. Bancorp common stock), plus up to an additional $275 million of contingent cash consideration payable over three years subject to achievement of defined performance targets, for total consideration of up to $1 billion (Form 8-K, accession 0001193125-26-011142, filed January 13, 2026). U.S. Bancorp completed the acquisition of BTIG on June 1, 2026: at closing, the company paid approximately $395 million of cash and issued 6.6 million shares of common stock, with the $275 million contingent tranche unchanged. Preliminary goodwill of $613 million was recorded in the transaction. Results for the second quarter of 2026 reflect one month of BTIG's contribution to noninterest income and noninterest expense, as well as the impact of shares issued as merger consideration on shareholders' equity (Form 10-Q, accession 0000036104-26-000044, filed August 6, 2026, Note 3; Form 8-K, accession 0000036104-26-000039, filed July 16, 2026.)

Earnings

• Second quarter 2026 (reported July 16, 2026): net income attributable to U.S. Bancorp of $2.2 billion, diluted earnings per common share of $1.35 (up 21.6% year-over-year), net interest income up 7.7% and noninterest income up 13.7% year-over-year, aided by the BTIG contribution. Common equity tier 1 capital ratio was 10.8% at June 30, 2026. (Form 8-K, accession 0000036104-26-000039.)
• First quarter 2026 (reported April 16, 2026): net revenue of $7,288 million, net income of $1,945 million (up 14% year-over-year), diluted EPS of $1.18 (up 15% year-over-year), return on average assets of 1.15%, efficiency ratio of 58.2%, and CET1 ratio of 10.8% at March 31, 2026. (Form 8-K, accession 0000036104-26-000021.)
• Fourth quarter and full-year 2025 (reported January 20, 2026): record quarterly net revenue of $7,365 million and record full-year net revenue of $28,656 million; fourth-quarter net income of $2,045 million (up 23.0% year-over-year) and diluted EPS of $1.26; full-year 2025 net income of $7,570 million and diluted EPS of $4.62. CET1 ratio was 10.8% at December 31, 2025. (Form 8-K, accession 0000036104-26-000005.)
• Third quarter 2025 (reported October 16, 2025): record net revenue of $7,329 million, net income of $2,001 million (up 16.7% year-over-year), diluted EPS of $1.22, and CET1 ratio of 10.9% at September 30, 2025. (Form 8-K, accession 0000036104-25-000060.)
• Second quarter 2025 (reported July 17, 2025): net income of $1,815 million (up 13.2% year-over-year), diluted EPS of $1.11, net revenue of $7,004 million (up 2.0% year-over-year), and CET1 ratio of 10.7% at June 30, 2025. (Form 8-K, accession 0000036104-25-000044.)

Capital actions

• June 24, 2026, U.S. Bancorp announced that its Federal Reserve Stress Capital Buffer requirement will remain unchanged at 2.6% until October 1, 2027, and announced plans to raise its quarterly common stock dividend from $0.52 to $0.54 per share, subject to board approval, beginning in the third quarter of 2026. As of March 31, 2026, the company had $4.1 billion of remaining capacity under its $5 billion share repurchase program. (Form 8-K, accession 0000036104-26-000035.)
• July 1, 2025, U.S. Bancorp disclosed a preliminary Stress Capital Buffer requirement of 2.6% based on the Federal Reserve's 2025 Dodd-Frank Act Stress Test, and announced planned capital actions including an increase in the quarterly common stock dividend from $0.50 to $0.52 per share, starting in the third quarter of 2025. (Form 8-K, accession 0000036104-25-000039.)
• March 9, 2026, U.S. Bancorp established a medium-term note program for issuance of Series EE (senior) and Series FF (subordinated) medium-term notes, registered under a Form S-3 shelf registration. (Form 8-K, accession 0001193125-26-098675.)
• April 8, 2026, Effective January 1, 2026, U.S. Bancorp made presentation reclassifications to its consolidated statement of income and balance sheet (renaming and regrouping certain fee revenue and loan categories) with no impact on historical total net revenues, provision for credit losses, operating expenses, net income, total loans, total assets, or per-share results. Conforming unaudited historical financial information was furnished as an exhibit. (Form 8-K, accession 0000036104-26-000017.)

Board and management changes

• January 27, 2026, Andrew Cecere, Chairman of the Board, informed the board he will not stand for re-election at the 2026 annual meeting, citing personal reasons after 40 years with the company. Gunjan Kedia, CEO and President, was elected to also serve as Chairman effective upon Cecere's retirement from the board on April 21, 2026. (Form 8-K, accession 0001193125-26-026195.)
• January 27, 2026, The board adopted a new U.S. Bank Executive Change in Control Severance Plan for executive officers and certain other officers, providing lump-sum cash severance (two times base salary, two times target annual incentive, a pro-rated incentive award, and six months of health coverage cost) upon a qualifying termination within 24 months of a change in control. (Form 8-K, accession 0001193125-26-029382.)
• April 21, 2026, At the 2026 annual meeting, shareholders elected all twelve director nominees, approved (on an advisory basis) executive compensation, and ratified Ernst & Young LLP as independent auditor for fiscal year 2026. (Form 8-K, accession 0001193125-26-173818.)

About this file

USB annual income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

USB quarterly income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

USB year-to-date income statement and cash flow

Taken from the SEC filings and normalized to actual dollars.

USB trailing twelve month income statement and cash flow

Derived by AI from the figures the filings report. No filing prints these, so none of them is linked.

Adjustments

Notes

• U.S. Bancorp is a bank holding company, so this record uses a banking frame, net interest income, provision for credit losses, noninterest income and expense, loans, deposits, capital ratios and book value per common share, rather than the revenue/cost-of-sales and capital-expenditure lines used for an industrial company. Neither filing presents a capital expenditure line or a free cash flow measure, and neither is reported here.
• Annual figures are from the Form 10-K for the year ended December 31, 2025 (accession 0000036104-26-000011). That 10-K carries its audited financial statements in the 2025 Annual Report filed with it as Exhibit 13; the consolidated balance sheet, statement of income, statement of cash flows and Table 1 Selected Financial Data in that exhibit are the sources for every annual figure here. Quarterly, six-month and balance-sheet-at-June-30-2026 figures are from the Form 10-Q for the quarter ended June 30, 2026 (accession 0000036104-26-000044).
• The FY2025 10-K presents three years of income statement and cash flow (2025, 2024 and 2023) and two years of balance sheet (December 31, 2025 and 2024). FY2023 therefore carries no complete balance sheet: the period-end loans, investment securities, total assets, deposits, long-term debt and U.S. Bancorp shareholders' equity shown for 2023 are the only 2023 balance-sheet amounts the 10-K prints, and they come from its Table 1 Selected Financial Data rather than from the consolidated balance sheet.
• Effective January 1, 2026 the company reclassified certain fee revenue categories and loan portfolios to align reporting with how it now manages the businesses, and restated the prior-year comparative periods in the 10-Q on the new basis. Corporate payment products revenue was renamed corporate payment and treasury management revenue and now also includes treasury management revenue (previously in service charges) and stored-value card revenue (previously in card revenue); service charges was renamed lending and deposit-related fees and now also includes loan and leasing fees (previously in capital markets revenue); capital markets revenue now also includes tax credit investment syndication revenue and related fees (previously in other noninterest income); and small business credit card loans moved from the commercial loan portfolio to the credit card portfolio. Total noninterest income and total loans are unaffected.
• Because of that reclassification, the fee categories in the annual periods here are as the FY2025 10-K prints them, on the earlier basis, while the fee categories in the 2026 quarter, the 2025 comparative quarter and the six-month periods are on the new basis as the 10-Q prints them. The individual fee lines are consequently not directly comparable between the annual and the quarterly tables; the totals are. The same applies to the loan mix: the 10-Q restates December 31, 2025 commercial loans to $148,161 million and credit card loans to $38,031 million, against the $153,958 million and $32,234 million the 10-K prints, with total loans unchanged at $391,335 million. The December 31, 2025 balance sheet recorded here shows the totals, which are identical in both filings.
• Total net revenue is carried as the company presents it, on a taxable-equivalent basis: net interest income plus the taxable-equivalent adjustment, plus noninterest income. That adjustment was $26 million in the second quarter of 2026, $54 million for the first six months of 2026 and $116 million in 2025. Adding the reported net interest income and noninterest income lines in this record gives the figure before the adjustment; adding the taxable-equivalent net interest income line instead gives the total.
• Return on tangible common equity, tangible book value per common share, the efficiency ratio, net interest income on a taxable-equivalent basis and total net revenue on a taxable-equivalent basis are measures the company designates as non-GAAP and reconciles within both filings; they are reported here exactly as the company states them.
• The 10-Q's consolidated statement of cash flows presents six-month columns only, so there is no discrete three-month cash flow for either the June 2026 or the June 2025 quarter. The six-month cash flows appear in the year-to-date block, and the quarterly entries carry no cash flow section.
• The 10-Q's balance sheet is presented at June 30, 2026 and December 31, 2025, so the Q2 2025 entry carries no balance sheet. Its book value and tangible book value per common share at June 30, 2025 are the ones the 10-Q's Table 1 Selected Financial Data prints for that date.
• The trailing twelve months block is derived, not printed in either filing: fiscal 2025 plus the six months ended June 30, 2026 less the six months ended June 30, 2025. Its per-share amounts are the sum of the reported per-share amounts of those periods and its share counts are the weighted average across the four quarters covered. The cash balance shown in that block is the actual balance at June 30, 2026, not a rolled-forward figure. No trailing-twelve-month fee breakdown is given, because the fee categories changed part way through the window.
• U.S. Bancorp reports in U.S. dollars, has had no stock split in the period these filings cover, and is not an ADR issuer, so no currency, split or per-ADS adjustment was applied to any figure.

Uncertainties

• No discrete three-month statement of cash flows exists for the June 2026 or June 2025 quarter in the material these filings provide: the 10-Q presents six-month columns only, and the second-quarter 2026 earnings release furnished with the Form 8-K of July 16, 2026 (accession 0000036104-26-000039) contains no statement of cash flows. Quarterly operating, investing and financing cash flows are therefore absent rather than estimated.
• The first quarter of 2026 is not presented as a discrete column in either filing and is not reported here. U.S. Bancorp reports its first-quarter 2026 results in its quarterly earnings release rather than in the Form 10-Q, and this record is built from the 10-K and the 10-Q.
• FY2023 carries only the six period-end balance-sheet amounts the 10-K's Table 1 prints for that year; total liabilities, total equity, cash, securities detail and goodwill at December 31, 2023 are not in these filings and are left out rather than sourced from elsewhere.
• The trailing-twelve-month figures are arithmetic from the three published periods, not amounts the company reports. Its diluted earnings per share of $5.01 is the sum of the reported per-share amounts; income applicable to common shareholders divided by the weighted diluted share count over the same window gives $5.01 as well, so the two readings agree to the cent, but neither is a figure the company publishes.
• Annual fee revenue categories and the 2026 fee revenue categories are not on the same basis, as described in the notes. A comparison of any single fee line between an annual period and a 2026 period would be misleading; the totals are comparable.

Company details

Fiscal period

Source filings