v3.26.1
Business Segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Business Segments
NOTE 16
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, and also includes investments in tax-advantaged projects.
Consumer and Business Banking Consumer and Business Banking comprises consumer banking, small business banking, debit cards 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, 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, 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 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.
Business segment results for the three months ended June 30 were as follows:
Wealth, Corporate, Commercial and Institutional Banking Consumer and Business Banking Payment ServicesTreasury and Corporate Support Consolidated Company
(Dollars in Millions)2026202520262025202620252026202520262025
Condensed Income Statement
Net interest income (taxable-equivalent basis)(a)
$1,937 $1,724 $1,836 $1,841 $774 $730 $(160)$(215)$4,387 $4,080 
Noninterest income(b)(c)
1,834 1,496 537 535 1,038 984 (84)(91)3,325 2,924 
Total net revenue(d)
3,771 3,220 2,373 2,376 1,812 1,714 (244)(306)7,712 7,004 
Compensation and employee benefits666 570 564 572 240 221 1,215 1,237 2,685 2,600 
Other intangibles44 46 51 58 19 20 — — 114 124 
Net shared services611 615 550 545 520 532 (1,681)(1,692)— — 
Other direct expenses(e)
281 246 345 342 348 243 655 626 1,629 1,457 
Total noninterest expense1,602 1,477 1,510 1,517 1,127 1,016 189 171 4,428 4,181 
Income (loss) before provision and income taxes2,169 1,743 863 859 685 698 (433)(477)3,284 2,823 
Provision for credit losses129 178 78 37 385 384 (54)(98)538 501 
Income (loss) before income taxes2,040 1,565 785 822 300 314 (379)(379)2,746 2,322 
Income taxes and taxable-equivalent adjustment510 391 196 206 75 79 (218)(175)563 501 
Net income (loss)1,530 1,174 589 616 225 235 (161)(204)2,183 1,821 
Net (income) loss attributable to noncontrolling interests— — — — — — (6)(6)(6)(6)
Net income (loss) attributable to U.S. Bancorp$1,530 $1,174 $589 $616 $225 $235 $(167)$(210)$2,177 $1,815 
Average Balance Sheet
Loans$213,957 $185,545 $144,008 $149,500 $45,947 $42,224 $1,569 $1,260 $405,481 $378,529 
Goodwill5,028 4,826 4,326 4,326 3,479 3,425 — — 12,833 12,577 
Other intangible assets645 817 3,910 4,277 241 258 6 8 4,802 5,360 
Assets268,412 234,434 157,112 165,129 51,171 47,840 218,015 225,938 694,710 673,341 
Noninterest-bearing deposits57,877 55,230 18,632 19,732 2,390 2,439 1,712 1,716 80,611 79,117 
Interest-bearing deposits227,688 213,621 206,430 200,548 93 95 258 9,509 434,469 423,773 
Total deposits285,565 268,851 225,062 220,280 2,483 2,534 1,970 11,225 515,080 502,890 
Total U.S. Bancorp shareholders’ equity25,064 23,700 12,865 13,563 10,692 10,234 18,244 13,402 66,865 60,899 
(a)Total net interest income includes a taxable-equivalent adjustment of $26 million and $29 million for the three months ended June 30, 2026 and 2025, respectively. See Non-GAAP Financial Measures beginning on page 27.
(b)Payment Services noninterest income presented net of related rewards and rebate costs and certain partner payments of $867 million and $789 million for the three months ended June 30, 2026 and 2025, respectively.
(c)Total noninterest income includes revenue generated from certain contracts with customers of $2.7 billion and $2.4 billion for the three months ended June 30, 2026 and 2025, respectively.
(d)The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Under these arrangements, the Company recorded a total of $202 million and $199 million of revenue for the three months ended June 30, 2026 and 2025, primarily consisting of interest income on sales-type and direct financing leases.
(e)Other direct expenses for each reportable segment includes: net occupancy and equipment, professional services, marketing and business development, technology and communications, and other.
Business segment results for the six months ended June 30 were as follows:
Wealth, Corporate, Commercial and Institutional Banking Consumer and Business Banking Payment ServicesTreasury and Corporate Support Consolidated Company
(Dollars in Millions)2026202520262025202620252026202520262025
Condensed Income Statement
Net interest income (taxable-equivalent basis)(a)
$3,811 $3,432 $3,635 $3,608 $1,568 $1,472 $(336)$(310)$8,678 $8,202 
Noninterest income(b)(c)
3,442 2,918 1,052 1,058 1,963 1,896 (135)(112)6,322 5,760 
Total net revenue(d)
7,253 6,350 4,687 4,666 3,531 3,368 (471)(422)15,000 13,962 
Compensation and employee benefits1,253 1,128 1,123 1,140 476 437 2,461 2,532 5,313 5,237 
Other intangibles84 92 103 117 37 38 — — 224 247 
Net shared services1,216 1,215 1,089 1,091 1,025 1,069 (3,330)(3,375)— — 
Other direct expenses(e)
526 499 677 679 598 464 1,355 1,287 3,156 2,929 
Total noninterest expense3,079 2,934 2,992 3,027 2,136 2,008 486 444 8,693 8,413 
Income (loss) before provision and income taxes4,174 3,416 1,695 1,639 1,395 1,360 (957)(866)6,307 5,549 
Provision for credit losses194 220 150 99 732 701 38 18 1,114 1,038 
Income (loss) before income taxes3,980 3,196 1,545 1,540 663 659 (995)(884)5,193 4,511 
Income taxes and taxable-equivalent adjustment995 799 386 386 166 165 (487)(376)1,060 974 
Net income (loss)2,985 2,397 1,159 1,154 497 494 (508)(508)4,133 3,537 
Net (income) loss attributable to noncontrolling interests— — — — — — (11)(13)(11)(13)
Net income (loss) attributable to U.S. Bancorp$2,985 $2,397 $1,159 $1,154 $497 $494 $(519)$(521)$4,122 $3,524 
Average Balance Sheet
Loans$208,980 $183,872 $144,100 $151,702 $44,980 $41,917 $1,493 $1,286 $399,553 $378,777 
Other earning assets15,747 13,538 2,530 3,335 6 31 208,759 216,113 227,042 233,017 
Goodwill4,928 4,825 4,326 4,326 3,480 3,409 — — 12,734 12,560 
Other intangible assets663 840 3,912 4,322 240 254 6 8 4,821 5,424 
Assets262,350 232,532 157,044 165,877 50,096 47,338 222,024 225,631 691,514 671,378 
Noninterest-bearing deposits57,837 55,581 18,507 19,502 2,407 2,527 1,869 1,795 80,620 79,405 
Interest-bearing deposits228,924 216,457 205,082 199,628 93 95 381 9,117 434,480 425,297 
Total deposits286,761 272,038 223,589 219,130 2,500 2,622 2,250 10,912 515,100 504,702 
Total U.S. Bancorp shareholders’ equity24,636 23,604 12,986 13,637 10,644 10,232 18,098 12,785 66,364 60,258 
(a)Total net interest income includes a taxable-equivalent adjustment of $54 million and $59 million for the six months ended June 30, 2026 and 2025, respectively. See Non-GAAP Financial Measures beginning on page 27.
(b)Payment Services noninterest income presented net of related rewards and rebate costs and certain partner payments of $1.7 billion and $1.5 billion for the six months ended June 30, 2026 and 2025, respectively.
(c)Total noninterest income includes revenue generated from certain contracts with customers of $5.1 billion and $4.7 billion for the six months ended June 30, 2026 and 2025, respectively.
(d)The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Under these arrangements, the Company recorded a total of $399 million and $396 million of revenue for the six months ended June 30, 2026 and 2025, respectively, primarily consisting of interest income on sales-type and direct financing leases.
(e)Other direct expenses for each reportable segment includes: net occupancy and equipment, professional services, marketing and business development, technology and communications, and other.