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Business Segments
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Business Segments
NOTE 16Business 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 and functional activities in Treasury and Corporate Support:
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 2024 and 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 of 2023. Prior period results were restated and presented on a comparable basis.
Business segment results for the three months ended March 31 were as follows:
 
Wealth, Corporate, Commercial and Institutional Banking
Consumer and Business Banking
Payment Services
(Dollars in Millions)202420232024202320242023
Condensed Income Statement
Net interest income (taxable-equivalent basis)$1,265 $1,550 $2,014 $2,341 $735 $655 
Noninterest income1,113 1,020 423 401 980  (a) 937  (a)
Total net revenue2,378 2,570 2,437 2,742 1,715 1,592 
Noninterest expense1,372 1,340 1,580 1,707 1,025 959 
Income (loss) before provision and income taxes1,006 1,230 857 1,035 690 633 
Provision for credit losses138 (26)55 7 359 220 
Income (loss) before income taxes868 1,256 802 1,028 331 413 
Income taxes and taxable-equivalent adjustment217 314 201 258 83 103 
Net income (loss)651 942 601 770 248 310 
Net (income) loss attributable to noncontrolling interests— — — — — — 
Net income (loss) attributable to U.S. Bancorp$651 $942 $601 $770 $248 $310 
Average Balance Sheet
Loans$170,965 $177,011 $154,933 $167,409 $39,803 $36,935 
Other earning assets8,740 6,027 1,879 2,179 153 302 
Goodwill4,825 4,614 4,325 4,493 3,332 3,315 
Other intangible assets1,059 1,034 4,696 5,594 300 385 
Assets199,085 201,182 169,177 185,245 46,816 42,858 
Noninterest-bearing deposits58,446 82,403 21,500 41,269 2,791 3,184 
Interest-bearing deposits203,980 196,843 203,343 176,797 97 108 
Total deposits262,426 279,246 224,843 218,066 2,888 3,292 
Total U.S. Bancorp shareholders’ equity21,749 21,536 14,848 16,565 9,965 8,968 
 
Treasury and Corporate Support
Consolidated Company
(Dollars in Millions)2024202320242023
Condensed Income Statement
Net interest income (taxable-equivalent basis)$1 $122 $4,015 $4,668 
Noninterest income184 149 2,700 (b)2,507 (b)
Total net revenue185 271 6,715 (c)7,175 (c)
Noninterest expense482 549 4,459 4,555 
Income (loss) before provision and income taxes(297)(278)2,256 2,620 
Provision for credit losses1 226 553 427 
Income (loss) before income taxes(298)(504)1,703 2,193 
Income taxes and taxable-equivalent adjustment(124)(186)377 489 
Net income (loss)(174)(318)1,326 1,704 
Net (income) loss attributable to noncontrolling interests(7)(6)(7)(6)
Net income (loss) attributable to U.S. Bancorp$(181)$(324)$1,319 $1,698 
Average Balance Sheet
Loans$5,369 $5,395 $371,070 $386,750 
Other earning assets214,293 212,356 225,065 220,864 
Goodwill— — 12,482 12,422 
Other intangible assets10 36 6,065 7,049 
Assets238,831 236,162 653,909 665,447 
Noninterest-bearing deposits2,050 2,885 84,787 129,741 
Interest-bearing deposits10,854 6,835 418,274 380,583 
Total deposits12,904 9,720 503,061 510,324 
Total U.S. Bancorp shareholders’ equity9,105 5,598 55,667 52,667 
(a)Presented net of related rewards and rebate costs and certain partner payments of $739 million and $717 million for the three months ended March 31, 2024 and 2023, respectively.
(b)Includes revenue generated from certain contracts with customers of $2.2 billion and $2.1 billion for the three months ended March 31, 2024 and 2023, respectively.
(c)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 $187 million and $183 million of revenue for the three months ended March 31, 2024 and 2023, respectively, primarily consisting of interest income on sales-type and direct financing leases.