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Business Segments
 6 Months Ended
Jun. 30, 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 revising the Company’s line of business funds transfer-pricing methodology related to deposits and loans during the second quarter of 2024 and 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 June 30 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)$1,906 $1,894 $1,922 $2,295 $673 $623 
Noninterest income1,131 1,071 413 431 1,094  (a) 1,050  (a)
Total net revenue3,037 2,965 2,335 2,726 1,767 1,673 
Noninterest expense1,374 1,380 1,622 1,764 983 941 
Income (loss) before provision and income taxes1,663 1,585 713 962 784 732 
Provision for credit losses100 162 30 16 388 314 
Income (loss) before income taxes1,563 1,423 683 946 396 418 
Income taxes and taxable-equivalent adjustment391 356 171 237 99 105 
Net income (loss)1,172 1,067 512 709 297 313 
Net (income) loss attributable to noncontrolling interests— — — — — — 
Net income (loss) attributable to U.S. Bancorp$1,172 $1,067 $512 $709 $297 $313 
Average Balance Sheet
Loans$173,695 $178,749 $154,857 $167,002 $40,832 $37,913 
Other earning assets9,590 6,671 2,278 2,512 115 74 
Goodwill4,824 4,651 4,326 4,530 3,327 3,331 
Other intangible assets1,007 962 4,734 5,393 281 359 
Assets203,201 205,169 168,634 184,804 46,099 44,126 
Noninterest-bearing deposits57,299 73,512 20,900 34,120 2,706 3,179 
Interest-bearing deposits216,293 195,333 202,967 180,239 97 104 
Total deposits273,592 268,845 223,867 214,359 2,803 3,283 
Total U.S. Bancorp shareholders’ equity21,481 22,359 14,553 16,386 9,941 9,127 
 Treasury and Corporate Support Consolidated Company
(Dollars in Millions)2024202320242023
Condensed Income Statement
Net interest income (taxable-equivalent basis)$(449)$(363)$4,052 $4,449 
Noninterest income177 174 2,815 (b)2,726 (b)
Total net revenue(272)(189)6,867 (c)7,175 (c)
Noninterest expense235 484 4,214 4,569 
Income (loss) before provision and income taxes(507)(673)2,653 2,606 
Provision for credit losses50 329 568 821 
Income (loss) before income taxes(557)(1,002)2,085 1,785 
Income taxes and taxable-equivalent adjustment(187)(282)474 416 
Net income (loss)(370)(720)1,611 1,369 
Net (income) loss attributable to noncontrolling interests(8)(8)(8)(8)
Net income (loss) attributable to U.S. Bancorp$(378)$(728)$1,603 $1,361 
Average Balance Sheet
Loans$5,301 $5,153 $374,685 $388,817 
Other earning assets222,224 215,765 234,207 225,022 
Goodwill— — 12,477 12,512 
Other intangible assets9 10 6,031 6,724 
Assets247,570 238,913 665,504 673,012 
Noninterest-bearing deposits2,513 2,947 83,418 113,758 
Interest-bearing deposits11,134 7,831 430,491 383,507 
Total deposits13,647 10,778 513,909 497,265 
Total U.S. Bancorp shareholders’ equity10,054 5,950 56,029 53,822 
(a)Presented net of related rewards and rebate costs and certain partner payments of $776 million and $760 million for the three months ended June 30, 2024 and 2023, respectively.
(b)Includes revenue generated from certain contracts with customers of $2.3 billion and $2.2 billion for the three months ended June 30, 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 $195 million and $186 million of revenue for the three months ended June 30, 2024 and 2023, respectively, primarily consisting of interest income on sales-type and direct financing leases.
Business segment results for the six months ended June 30 were as follows:
Wealth, Corporate, Commercial and Institutional Banking Consumer and Business Banking  Payment Services
(Dollars in Millions)202420232024 2023 2024 2023
Condensed Income Statement
Net interest income (taxable-equivalent basis)$3,810 $3,857 $3,801 $4,684 $1,375 $1,270 
Noninterest income2,244 2,090 836 831 2,073  (a) 1,987  (a)
Total net revenue6,054 5,947 4,637 5,515 3,448 3,257 
Noninterest expense2,746 2,738 3,224 3,496 1,981 1,889 
Income (loss) before provision and income taxes3,308 3,209 1,413 2,019 1,467 1,368 
Provision for credit losses241 135 84 23 747 534 
Income (loss) before income taxes3,067 3,074 1,329 1,996 720 834 
Income taxes and taxable-equivalent adjustment767 769 333 500 180 209 
Net income (loss)2,300 2,305 996 1,496 540 625 
Net (income) loss attributable to noncontrolling interests— — — — — — 
Net income (loss) attributable to U.S. Bancorp$2,300 $2,305 $996 $1,496 $540 $625 
  
Average Balance Sheet      
Loans$172,381 $177,867 $154,845 $167,214 $40,318 $37,426 
Other earning assets9,164 6,349 2,078 2,346 134 187 
Goodwill4,825 4,633 4,326 4,512 3,329 3,323 
Other intangible assets1,033 998 4,714 5,492 291 372 
Assets201,196 203,168 168,854 185,032 46,458 43,492 
Noninterest-bearing deposits57,939 77,816 21,137 37,616 2,749 3,181 
Interest-bearing deposits212,068 197,372 201,131 177,227 97 106 
Total deposits270,007 275,188 222,268 214,843 2,846 3,287 
Total U.S. Bancorp shareholders’ equity21,619 21,949 14,699 16,476 9,953 9,048 
 
 Treasury and Corporate Support Consolidated Company  
(Dollars in Millions)202420232024 2023 
Condensed Income Statement     
Net interest income (taxable-equivalent basis)$(919)$(694)$8,067  $9,117 
Noninterest income362 325 5,515 (b)5,233 (b)
Total net revenue(557)(369)13,582 (c)14,350 (c)
Noninterest expense722 1,001 8,673 9,124 
Income (loss) before provision and income taxes(1,279)(1,370)4,909  5,226 
Provision for credit losses49 556 1,121  1,248 
Income (loss) before income taxes(1,328)(1,926)3,788  3,978 
Income taxes and taxable-equivalent adjustment(429)(573)851  905 
Net income (loss)(899)(1,353)2,937  3,073 
Net (income) loss attributable to noncontrolling interests(15)(14)(15) (14)
Net income (loss) attributable to U.S. Bancorp$(914)$(1,367)$2,922  $3,059 
Average Balance Sheet     
Loans$5,334 $5,282 $372,878  $387,789 
Other earning assets218,259 214,073 229,635  222,955 
Goodwill— — 12,480  12,468 
Other intangible assets10 23 6,048  6,885 
Assets243,199 237,559 659,707  669,251 
Noninterest-bearing deposits2,277 3,092 84,102  121,705 
Interest-bearing deposits11,087 7,348 424,383  382,053 
Total deposits13,364 10,440 508,485  503,758 
Total U.S. Bancorp shareholders’ equity9,578 5,775 55,849  53,248 
(a)Presented net of related rewards and rebate costs and certain partner payments of $1.5 billion for both the six months ended June 30, 2024 and 2023.
(b)Includes revenue generated from certain contracts with customers of $4.5 billion and $4.3 billion for the six months ended June 30, 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 $382 million and $369 million of revenue for the six months ended June 30, 2024 and 2023, respectively, primarily consisting of interest income on sales-type and direct financing leases.