US BANCORP \DE\USB

US BANCORP \DE\ Segments Disclosure

10-KFiled Feb 23, 20267 min read
NOTE 23
Business Segments
The Company's management reporting is organized into three reportable operating segments aligned by major lines of business based on the products and services provided to customers through its distribution channels. All other business activities not included in the reportable operating segments are included in the Treasury and Corporate Support business segment. The chief operating decision maker uses net interest income on a taxable-equivalent basis, noninterest income and net income (loss) before income taxes for all reportable segments in deciding how to allocate resources during the annual budget and monthly forecasting process. The chief operating decision maker considers variances in reported results to forecasts and variances to prior periods to assess performance. The Company’s chief operating decision maker is the Chief Executive Officer. The Company has the following reportable operating and other business segments:
Wealth, Corporate, Commercial and Institutional Banking Wealth, Corporate, Commercial and Institutional Banking provides core banking, specialized lending, transaction and payment processing, capital markets, asset management, and brokerage and investment related services to wealth, middle market, large corporate, commercial real estate, government and institutional clients.
Consumer and Business Banking Consumer and Business Banking comprises consumer banking, small business banking and consumer lending. Products and services are delivered through banking offices, telephone servicing and sales, online services, direct mail, ATMs,
mobile devices, distributed mortgage loan officers, and intermediary relationships including auto dealerships, mortgage banks, and strategic business partners.
Payment Services Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate, government and purchasing card services and merchant processing.
Treasury and Corporate Support Treasury and Corporate Support includes the Company’s investment portfolios, funding, capital management, interest rate risk management, income taxes not allocated to business segments, including most investments in tax-advantaged projects, and the residual aggregate of those expenses associated with corporate activities that are managed on a consolidated basis.
Basis of Presentation Business segment results are derived from the Company’s business unit profitability reporting systems by specifically attributing managed balance sheet assets, deposits and other liabilities and their related income or expense. The allowance for credit losses and related provision expense are allocated to the business segments according to the volume and credit quality of the loan balances managed, but with the impact of changes in economic forecasts recorded in Treasury and Corporate Support. Goodwill and other intangible assets are assigned to the business segments based on the mix of business of an entity acquired by the Company. Within the Company, capital levels are evaluated and managed centrally; however, capital is allocated to the business segments to support evaluation of business performance.
Business segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements. Generally, the determination of the amount of capital allocated to each business segment includes credit allocations following a Basel III regulatory framework. Interest income and expense is determined based on the assets and liabilities managed by the business segment. Because funding and asset/liability management is a central function, funds transfer-pricing methodologies are utilized to allocate a cost of funds used or credit for funds provided to all business segment assets and liabilities, respectively, using a matched funding concept. Also, each business unit is allocated the taxable-equivalent benefit of tax-exempt products. The residual effect on net interest income of asset/liability management activities is included in Treasury and Corporate Support. Noninterest income and expenses directly managed by each business segment, including fees, service charges, salaries and benefits, and other direct revenues and costs, are accounted for within each segment’s financial results in a manner similar to the consolidated financial statements.
Occupancy costs are allocated based on utilization of facilities by the business segments. Generally, operating losses are charged to the business segment when the loss event is realized in a manner similar to a loan charge-off. Noninterest expenses incurred by centrally managed operations or business segments that directly support another business segment’s operations are charged to the applicable business segment based on its utilization of those services, primarily measured by the volume of customer activities, number of employees or other relevant factors. These allocated expenses are reported as net shared services expense within noninterest expense. Certain activities that do not directly support the operations of the business segments or for which the business segments are not considered financially accountable in evaluating their performance are not charged to the business segments. The income or expenses associated with these corporate activities, including merger and integration charges, are reported within the Treasury and Corporate Support business segment. Income taxes are assessed to each business segment at a standard tax rate with the residual tax expense or benefit to arrive at the consolidated effective tax rate included in Treasury and Corporate Support.

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 2025, 2024, and 2023, certain organization and methodology changes were made, including revising the Company’s business segment funds transfer-pricing methodology related to deposits and loans during the second quarter of 2024. Prior period results were recast and presented on a comparable basis.
Condensed income statement results by business segment for the years ended December 31 were as follows:
Wealth, Corporate, Commercial and Institutional BankingConsumer and Business Banking Payment Services
(Dollars in Millions)202520242023202520242023202520242023
Net interest income (taxable-equivalent basis)(a)
$7,214 $7,613 $7,812 $7,248 $7,625 $8,658 $3,048 $2,831 $2,609 
Noninterest income(b)(c)
4,869 4,538 4,145 1,625 1,606 1,637 4,359 4,195 4,056 
Total net revenue12,083 12,151 11,957 8,873 9,231 10,295 7,407 7,026 6,665 
Compensation and employee benefits2,121 2,127 2,082 2,109 2,212 2,303 891 856 832 
Other intangibles184 206 229 236 266 291 78 97 115 
Net shared services2,094 2,147 2,170 2,750 2,768 2,957 2,145 2,094 2,007 
Other direct expenses(d)
969 937 1,022 1,242 1,286 1,332 1,012 915 915 
Total noninterest expense5,368 5,417 5,503 6,337 6,532 6,883 4,126 3,962 3,869 
Income (loss) before provision and income taxes6,715 6,734 6,454 2,536 2,699 3,412 3,281 3,064 2,796 
Provision for credit losses546 385 340 238 182 78 1,570 1,614 1,394 
Income (loss) before income taxes6,169 6,349 6,114 2,298 2,517 3,334 1,711 1,450 1,402 
Income taxes and taxable-equivalent adjustment1,543 1,588 1,529 575 630 834 429 363 351 
Net income (loss)4,626 4,761 4,585 1,723 1,887 2,500 1,282 1,087 1,051 
Net (income) loss attributable to noncontrolling interests— — — — — — — — — 
Net income (loss) attributable to U.S. Bancorp$4,626 $4,761 $4,585 $1,723 $1,887 $2,500 $1,282 $1,087 $1,051 
 Treasury and Corporate SupportConsolidated Company
(Dollars in Millions)202520242023202520242023
Net interest income (taxable-equivalent basis)(a)
$(745)$(1,660)$(1,552)$16,765 $16,409 $17,527 
Noninterest income(b)(c)
1,038 707 779 11,891 11,046 10,617 
Total net revenue293 (953)(773)28,656 27,455 28,144 
Compensation and employee benefits5,206 5,359 5,199 10,327 10,554 10,416 
Other intangibles— — 1 498 569 636 
Net shared services(6,989)(7,009)(7,134)— — — 
Other direct expenses(d)
2,789 2,927 4,552 6,012 6,065 7,821 
Total noninterest expense1,006 1,277 2,618 16,837 17,188 18,873 
Income (loss) before provision and income taxes(713)(2,230)(3,391)11,819 10,267 9,271 
Provision for credit losses(168)57 463 2,186 2,238 2,275 
Income (loss) before income taxes(545)(2,287)(3,854)9,633 8,029 6,996 
Income taxes and taxable-equivalent adjustment(510)(881)(1,176)2,037 1,700 1,538 
Net income (loss)(35)(1,406)(2,678)7,596 6,329 5,458 
Net (income) loss attributable to noncontrolling interests(26)(30)(29)(26)(30)(29)
Net income (loss) attributable to U.S. Bancorp$(61)$(1,436)$(2,707)$7,570 $6,299 $5,429 
(a)Total net interest income includes a taxable-equivalent adjustment of $116 million, $120 million and $131 million for 2025, 2024 and 2023, respectively. See Non-GAAP Financial Measures beginning on page 54.
(b)Payment services noninterest income presented net of related rewards and rebate costs and certain partner payments of $3.1 billion, $3.1 billion and $3.0 billion for 2025, 2024 and 2023, respectively.
(c)Total noninterest income includes revenue generated from certain contracts with customers of $9.7 billion, $9.2 billion and $8.8 billion for 2025, 2024 and 2023, respectively.
(d)Other direct expenses for each reportable segment includes: net occupancy and equipment, professional services, marketing and business development, technology and communications, and other.
Average balances by business segment for the years ended December 31 were as follows:
Wealth, Corporate, Commercial and Institutional BankingConsumer and Business Banking Payment Services
(Dollars in Millions)202520242023202520242023202520242023
Loans$183,254 $172,517 $175,870 $148,543 $155,039 $162,017 $42,689 $41,080 $38,470 
Goodwill4,826 4,825 4,682 4,326 4,326 4,465 3,444 3,357 3,328 
Other intangible assets794 981 1,007 4,222 4,539 5,264 254 277 351 
Assets213,156 201,415 202,735 162,080 168,862 179,252 48,007 47,166 44,289 
Noninterest-bearing deposits55,920 56,814 71,012 19,461 20,770 30,882 2,524 2,685 2,981 
Interest-bearing deposits216,953 216,083 203,995 201,223 199,155 184,758 95 95 102 
Total deposits272,873 272,897 275,007 220,684 219,925 215,640 2,619 2,780 3,083 
Total U.S. Bancorp shareholders’ equity22,018 21,440 22,367 13,478 14,424 16,026 10,310 10,005 9,310 
 
Treasury and Corporate SupportConsolidated Company
(Dollars in Millions)202520242023202520242023
Loans$5,774 $5,239 $4,918 $380,260 $373,875 $381,275 
Goodwill— — — 12,596 12,508 12,475 
Other intangible assets7 9 17 5,277 5,806 6,639 
Assets253,297 246,571 237,164 676,540 664,014 663,440 
Noninterest-bearing deposits2,603 2,738 2,893 80,508 83,007 107,768 
Interest-bearing deposits10,339 11,175 9,040 428,610 426,508 397,895 
Total deposits12,942 13,913 11,933 509,118 509,515 505,663 
Total U.S. Bancorp shareholders’ equity16,145 11,337 5,957 61,951 57,206 53,660 
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Historical Timeline

Fiscal YearFiled
2025Feb 23, 2026Showing above
2024Feb 21, 2025
2023Feb 20, 2024
2022Feb 27, 2023
2021Feb 22, 2022
2020Feb 23, 2021
2019Feb 20, 2020

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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