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Business Segments
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Business Segments
NOTE 24Business Segments
Within the Company, financial performance is measured by major lines of business based on the products and services provided to customers through its distribution channels. These operating segments are components of the Company about which financial information is prepared and is evaluated regularly by management in deciding how to allocate resources and assess performance. The Company has the following reportable operating 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, 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, ATM processing, 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 2023, certain organization and methodology changes were made, including the Company combining its Wealth Management and Investment Services and Corporate and Commercial Banking lines of businesses to create the Wealth, Corporate, Commercial and Institutional Banking line of business during the third quarter. Prior period results were restated and presented on a comparable basis.
Business segment results for the years ended December 31 were as follows:
Wealth, Corporate, Commercial and Institutional Banking
Consumer and Business Banking
Payment Services
(Dollars in Millions)202320222023202220232022
Condensed Income Statement
Net interest income (taxable-equivalent basis)$6,129 $5,213 $8,331 $6,764 $2,702 $2,504 
Noninterest income4,143 3,561 1,662 1,536 4,056 
(a)
3,794 
(a)
Total net revenue10,272 8,774 9,993 8,300 6,758 6,298 
Noninterest expense5,183 4,135 6,964 5,779 3,772 3,525 
Income (loss) before provision and income taxes5,089 4,639 3,029 2,521 2,986 2,773 
Provision for credit losses334 154 79 75 1,394 980 
Income (loss) before income taxes4,755 4,485 2,950 2,446 1,592 1,793 
Income taxes and taxable-equivalent adjustment1,190 1,122 738 612 398 449 
Net income (loss)3,565 3,363 2,212 1,834 1,194 1,344 
Net (income) loss attributable to noncontrolling interests— — — — — — 
Net income (loss) attributable to U.S. Bancorp$3,565 $3,363 $2,212 $1,834 $1,194 $1,344 
 
Average Balance Sheet
Loans$175,780 $150,512 $161,862 $144,441 $38,471 $34,627 
Other earning assets6,615 4,771 2,388 3,117 97 634 
Goodwill4,682 3,634 4,466 3,250 3,327 3,305 
Other intangible assets1,007 365 5,265 3,784 350 423 
Assets202,642 169,554 179,103 160,174 44,292 41,072 
Noninterest-bearing deposits70,977 82,671 31,082 31,719 2,981 3,410 
Interest-bearing deposits199,780 175,345 189,148 163,190 103 162 
Total deposits270,757 258,016 220,230 194,909 3,084 3,572 
Total U.S. Bancorp shareholders’ equity22,362 18,159 16,016 12,678 9,310 8,233 
 
 Treasury and Corporate SupportConsolidated Company
(Dollars in Millions)2023202220232022
Condensed Income Statement    
Net interest income (taxable-equivalent basis)$365 $365 $17,527 $14,846 
Noninterest income756 565 10,617 
(b)
9,456 
(b)
Total net revenue1,121 930 28,144 24,302 
Noninterest expense2,954 1,467 18,873 14,906 
Income (loss) before provision and income taxes(1,833)(537)9,271 9,396 
Provision for credit losses468 768 2,275 1,977 
Income (loss) before income taxes(2,301)(1,305)6,996 7,419 
Income taxes and taxable-equivalent adjustment(788)(602)1,538 1,581 
Net income (loss)(1,513)(703)5,458 5,838 
Net (income) loss attributable to noncontrolling interests(29)(13)(29)(13)
Net income (loss) attributable to U.S. Bancorp$(1,542)$(716)$5,429 $5,825 
 
Average Balance Sheet
Loans$5,162 $3,993 $381,275 $333,573 
Other earning assets214,824 203,248 223,924 211,770 
Goodwill— — 12,475 10,189 
Other intangible assets17 5 6,639 4,577 
Assets237,403 221,349 663,440 592,149 
Noninterest-bearing deposits2,728 2,594 107,768 120,394 
Interest-bearing deposits8,864 3,293 397,895 341,990 
Total deposits11,592 5,887 505,663 462,384 
Total U.S. Bancorp shareholders’ equity5,972 11,346 53,660 50,416 
(a)Presented net of related rewards and rebate costs and certain partner payments of $3.0 billion and $2.9 billion for 2023 and 2022, respectively.
(b)Includes revenue generated from certain contracts with customers of $8.8 billion and $8.0 billion for 2023 and 2022, respectively.