US Bancorp USB · USD

NOTE 23Business SegmentsThe 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.

NOTE 13 Long-Term DebtLong-term debt (debt with original maturities of more than one year) at December 31 consisted of the following: (Dollars in Millions)Rate TypeRate(a) Maturity Date20252024U.S. Bancorp (Parent Company)Subordinated notesFixed7.500 %2026$199 $199 Fixed3.100 %20261,000 1,000 Fixed3.000 %20291,000 1,000 Fixed4.967 %20331,300 1,300 Fixed2.491 %20361,300 1,300 Medium-term notesFixed1.375% - 6.787% 2026 - 204529,285 27,939 Floating2.866 %2028588 519 Other(b)2,385 2,000 Subtotal37,057 35,257 SubsidiariesFederal Home Loan Bank advancesFixed1.860% - 5.260% 2026 - 202711,550 12,550 Floating4.130% - 4.590% 2026 - 20273,500 3,000 Bank notesFixed3.966% - 5.550% 2027 - 20323,097 3,405 Floating—% - 4.564% 2027 - 20652,892 1,813 Other(c)2,668 1,977 Subtotal23,707 22,745 Total$60,764 $58,002 (a)Weighted-average interest rates of medium-term notes, Federal Home Loan Bank advances and bank notes were 4.60 percent, 4.41 percent and 3.44 percent, respectively.(b)Includes $2.3 billion and $2.2 billion at December 31, 2025 and 2024, respectively, of discounted noninterest-bearing additional cash received by the Company upon close of its 2022 acquisition of MUB from Mitsubishi UFJ Financial Group ("MUFG") to be delivered to MUFG on or prior to December 1, 2027, discounted at the Company’s 5-year unsecured borrowing rate as of the acquisition date, as well as debt issuance fees and unrealized gains and losses and deferred amounts relating to derivative instruments.(c)Includes consolidated community development and tax-advantaged investment VIEs, finance lease obligations, debt issuance fees, and unrealized gains and losses and deferred amounts relating to derivative instruments.The Company has arrangements with the Federal Home Loan Bank and Federal Reserve Bank whereby the Company could have borrowed an additional $205.1 billion and $171.2 billion at December 31, 2025 and 2024, respectively.

NOTE 18 Income TaxesThe components of income before income taxes and income tax expense (benefit) were as follows: Year Ended December 31 (Dollars in Millions)202520242023Income before income taxesU.S.$9,330 $7,786 $6,738 Foreign187 123 127 Total$9,517 $7,909 $6,865 Income tax expense (benefit)Current tax expense (benefit)U.S. Federal$1,183 $1,252 $1,418 U.S. State and local394 279 482 Foreign36 20 16 Total current tax expense (benefit)1,613 1,551 1,916 Deferred tax expense (benefit)U.S. Federal209 (5)(342)U.S. State and local99 35 (183)Foreign— (1)16 Total deferred tax expense (benefit)308 29 (509)Total income tax expense (benefit)U.S. Federal1,392 1,247 1,076 U.S. State and local493 314 299 Foreign36 19 32 Total income tax expense (benefit)$1,921 $1,580 $1,407 A reconciliation of expected income tax expense at the U.S. federal statutory rate of 21 percent to the Company’s applicable income tax expense follows: Year Ended December 31 (Dollars in Millions)202520242023AmountPercent AmountPercent AmountPercentTax at U.S. Federal statutory tax rate$1,999 21.0 %$1,661 21.0 %$1,442 21.0 % State income and local taxes, net of U.S. federal tax benefit(a)446 4.7 320 4.0 266 3.9 Foreign tax effects2 — — — 4 .1 Effect of cross-border tax laws11 .1 6 .1 (3)— Tax credits Renewable energy(378)(4.0)(230)(2.9)(119)(1.7) Other(139)(1.5)(119)(1.5)(106)(1.5)Changes in valuation allowances33 .3 — — — — Nontaxable or nondeductible items Tax-exempt income(151)(1.6)(144)(1.8)(142)(2.1) Nondeductible legal and regulatory expenses46 .5 57 .7 76 1.1 Other32 .3 35 .4 34 .5 Changes in unrecognized tax benefits21 .2 (65)(.8)(52)(.8)Other adjustments(1)— 59 .7 7 .1 Applicable income taxes$1,921 20.2 %$1,580 20.0 %$1,407 20.5 %(a)The majority of this category (greater than 50 percent) consists of California state taxes, California and Minnesota state taxes and California, Minnesota and New York state taxes for 2025, 2024 and 2023, respectively. The components of cash paid for income taxes were:Year Ended December 31 (Dollars in Millions)202520242023U.S. Federal$338 $355 $517 U.S. State and Local California120 85 44 New York*28 * Other50 15 64 Total U.S. State and local170 128 108 Foreign36 16 20 Total cash paid for income taxes$544 $499 $645 * The amount of cash paid for income taxes was less than 5 percent of total cash paid for income taxes for all jurisdictions during the period.

NOTE 17 Stock-Based CompensationAs part of its employee and director compensation programs, the Company currently may grant certain stock awards under the provisions of its stock incentive plan. The plan provides for grants of shares of common stock or stock units that are subject to restriction on transfer prior to vesting. Most stock and unit awards vest over three to five years and are subject to forfeiture if certain vesting requirements are not met. In addition, the plan provides for grants of options to purchase shares of common stock at a fixed price equal to the fair value of the underlying stock at the date of grant. Option grants are generally exercisable up to ten years from the date of grant. Stock incentive plans of acquired companies are generally terminated at the merger closing dates. Participants under such plans receive the Company’s common stock, options to buy the Company’s common stock, or long term cash incentives, based on the conversion terms of the various merger agreements. At December 31, 2025, there were 41 million shares (subject to adjustment for forfeitures) available for grant under the Company’s stock incentive plan. Restricted Stock and Unit Awards A summary of the status of the Company’s restricted shares of stock and unit awards is presented below: 202520242023Year Ended December 31SharesWeighted-Average Grant-Date Fair ValueSharesWeighted-Average Grant-Date Fair ValueSharesWeighted-Average Grant-Date Fair ValueOutstanding at beginning of period9,241,387 $44.45 8,316,571 $48.42 6,880,826 $52.59 Granted5,815,879 46.25 6,107,976 42.12 5,565,634 45.87 Vested(5,272,319)47.05 (4,680,480)48.52 (3,872,874)52.05 Cancelled(507,322)44.48 (502,680)44.06 (257,015)50.00 Outstanding at end of period9,277,625 $44.10 9,241,387 $44.45 8,316,571 $48.42 The total fair value of shares vested was $252 million, $208 million and $180 million for the years ended December 31, 2025, 2024 and 2023, respectively. Stock-based compensation expense was $235 million, $232 million and $224 million for the years ended December 31, 2025, 2024 and 2023, respectively. On an after-tax basis, stock-based compensation was $177 million, $173 million and $167 million for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, there was $177 million of total unrecognized compensation cost related to nonvested share-based arrangements granted under the plans.

NOTE 6 LeasesThe Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Retail leases consist primarily of automobiles, while commercial leases may include high dollar assets such as aircraft or lower cost items such as office equipment. The components of the net investment in sales-type and direct financing leases, at December 31, were as follows: (Dollars in Millions)20252024Lease receivables$7,277 $7,328 Unguaranteed residual values accruing to the lessor’s benefit653 911 Total net investment in sales-type and direct financing leases$7,930 $8,239 The Company, as a lessor, recorded $792 million, $775 million and $738 million of revenue on its Consolidated Statement of Income for the years ended December 31, 2025, 2024 and 2023, respectively, primarily consisting of interest income on sales-type and direct financing leases. The contractual future lease payments to be received by the Company, at December 31, 2025, were as follows: (Dollars in Millions)Sales-type and Direct Financing Leases Operating Leases2026$2,611 $145 20272,524 123 20281,612 93 2029735 63 2030294 41 Thereafter342 67 Total lease payments8,118 $532 Amounts representing interest(841)Lease receivables$7,277 The Company, as lessee, leases certain assets for use in its operations. Leased assets primarily include retail branches, operations centers and other corporate locations, and, to a lesser extent, office and computer equipment. For each lease with an original term greater than 12 months, the Company records a lease liability and a corresponding ROU asset. At December 31, 2025, the Company’s ROU assets included in premises and equipment and lease liabilities included in long-term debt and other liabilities were $1.5 billion and $1.5 billion, respectively, compared with $1.4 billion of ROU assets and $1.5 billion of lease liabilities at December 31, 2024, respectively.Total costs incurred by the Company, as a lessee, were $446 million, $529 million and $496 million for the years ended December 31, 2025, 2024 and 2023, respectively, and principally related to contractual lease payments on operating leases and included in net occupancy and equipment expense. The Company’s leases do not impose significant covenants or other restrictions on the Company.

Risk Assessment and ManagementThe Company is committed to managing risks that may impact the Company and incorporating risk considerations into its business activities at all levels, including strategic planning, risk identification inventory and assessment, and day-to-day business decisions. The Company’s Board of Directors has approved a risk management framework that establishes governance and risk management requirements for all the Company’s key risk areas and risk-taking activities. The Board oversees management’s performance relative to the risk management framework and risk appetite. Management is responsible for defining the various risks facing the Company, formulating risk management policies and procedures, and managing risk exposures on a day-to-day basis. The Company’s Executive Risk Committee (ERC), which is chaired by the Chief Risk Officer, oversees execution of the risk management framework. The ERC is supported by management’s senior operating committees, each responsible for a specified risk category. The Company’s Cybersecurity and Technology Governance Committee (CTGC), which is co-chaired by the co-Chief Information Security Officers (CISOs), the Chief Technology Risk Officer, and the Head of Enterprise Architecture, is a senior operating committee under this risk governance structure and is responsible for the management of information security risk at the Company. The CTGC acts as the primary management-level committee dedicated to the governance and oversight of cybersecurity and technology at the Company. The CTGC exercises oversight and provides strategic direction regarding cybersecurity and technology risks, including significant related risk events, and also monitors the overall health of the functions and the timely execution of critical actions. The CTGC considers the condition of the risks, the Company’s programs to manage risks, and significant cybersecurity or technology risk items escalated to the CTGC. The CTGC serves as a decision-making and approval body for key cybersecurity and technology policies, programs, emerging risks, and issues, while facilitating communication across business lines and escalating matters to executive management, the ERC, or the Board, including the Technology Committee, as appropriate.

NOTE 11 DepositsThe composition of deposits at December 31 was as follows: (Dollars in Millions)20252024Noninterest-bearing deposits$84,116 $84,158 Interest-bearing depositsInterest checking132,217 127,188 Money market savings192,118 206,805 Savings accounts65,733 45,389 Time deposits48,032 54,769 Total interest-bearing deposits438,100 434,151 Total deposits$522,216 $518,309 The maturities of time deposits outstanding at December 31, 2025 were as follows: (Dollars in Millions) 2026$46,873 2027638 2028178 2029117 2030222 Thereafter4 Total$48,032

NOTE 16Employee BenefitsEmployee Retirement Savings Plan The Company has a defined contribution retirement savings plan that covers substantially all its employees. Qualified employees are allowed to contribute up to 75 percent of their annual compensation, subject to Internal Revenue Service limits, through salary deductions under Section 401(k) of the Internal Revenue Code. Employee contributions are invested at their direction among a variety of investment alternatives. Employee contributions are 100 percent matched by the Company, up to four percent of each employee’s eligible annual compensation. The Company’s matching contribution vests immediately and is invested in the same manner as each employee’s future contribution elections. Total expense for the Company’s matching contributions was $249 million, $262 million and $254 million in 2025, 2024 and 2023, respectively. Pension and Postretirement Welfare Plans The Company has tax qualified noncontributory defined benefit pension plans, nonqualified pension plans and a postretirement welfare plan. Pension Plans The funded tax qualified noncontributory defined benefit pension plans provide benefits to substantially all the Company’s employees. Participants receive annual cash balance pay credits based on eligible pay multiplied by a percentage determined by their age and/or years of service, as defined by the plan documents. Participants also receive an annual interest credit. Generally, employees become vested upon completing three years of vesting service. The Company did not contribute to its qualified pension plans in 2025 and 2024 and does not expect to contribute to the plans in 2026. The Company also maintains two non-qualified plans that are unfunded and provide benefits to certain employees. The assumptions used in computing the accumulated benefit obligation, the projected benefit obligation and net pension expense are substantially consistent with those assumptions used for the funded qualified plans. In 2026, the Company expects to contribute approximately $55 million to its non-qualified pension plans, which equals the 2026 expected benefit payments. Postretirement Welfare Plan In addition to providing pension benefits, the Company has a funded postretirement welfare plan available to certain eligible participants based on their hire or retirement date. The plan is closed to new participants. In 2026, the Company does not expect to contribute to its postretirement welfare plan.