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Business Segments
 9 Months Ended
Sep. 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 September 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)$1,896 $2,023 $1,937 $2,048 $727 $663 
Noninterest income1,145 1,030 401 434 1,073  (a) 1,039  (a)
Total net revenue3,041 3,053 2,338 2,482 1,800 1,702 
Noninterest expense1,364 1,340 1,685 1,721 1,026 1,006 
Income (loss) before provision and income taxes1,677 1,713 653 761 774 696 
Provision for credit losses94 136 18 7 404 399 
Income (loss) before income taxes1,583 1,577 635 754 370 297 
Income taxes and taxable-equivalent adjustment396 394 159 189 93 74 
Net income (loss)1,187 1,183 476 565 277 223 
Net (income) loss attributable to noncontrolling interests— — — — — — 
Net income (loss) attributable to U.S. Bancorp$1,187 $1,183 $476 $565 $277 $223 
Average Balance Sheet
Loans$171,833 $175,700 $155,304 $157,458 $41,653 $38,954 
Other earning assets10,740 6,458 2,738 2,688 8 5 
Goodwill4,825 4,638 4,326 4,515 3,370 3,333 
Other intangible assets955 921 4,405 5,154 266 340 
Assets200,199 203,910 168,937 174,883 47,199 44,774 
Noninterest-bearing deposits54,263 66,055 20,781 25,561 2,653 2,796 
Interest-bearing deposits215,604 210,041 200,897 192,725 95 101 
Total deposits269,867 276,096 221,678 218,286 2,748 2,897 
Total U.S. Bancorp shareholders’ equity21,277 22,839 14,247 15,770 9,959 9,442 
 Treasury and Corporate Support Consolidated Company
(Dollars in Millions)2024202320242023
Condensed Income Statement
Net interest income (taxable-equivalent basis)$(394)$(466)$4,166 $4,268 
Noninterest income79 261 2,698 (b)2,764 (b)
Total net revenue(315)(205)6,864 (c)7,032 (c)
Noninterest expense129 463 4,204 4,530 
Income (loss) before provision and income taxes(444)(668)2,660 2,502 
Provision for credit losses41 (27)557 515 
Income (loss) before income taxes(485)(641)2,103 1,987 
Income taxes and taxable-equivalent adjustment(267)(194)381 463 
Net income (loss)(218)(447)1,722 1,524 
Net (income) loss attributable to noncontrolling interests(8)(1)(8)(1)
Net income (loss) attributable to U.S. Bancorp$(226)$(448)$1,714 $1,523 
Average Balance Sheet
Loans$5,280 $4,765 $374,070 $376,877 
Other earning assets219,624 219,217 233,110 228,368 
Goodwill— — 12,521 12,486 
Other intangible assets9 10 5,635 6,425 
Assets248,305 240,432 664,640 663,999 
Noninterest-bearing deposits3,242 3,112 80,939 97,524 
Interest-bearing deposits11,222 11,900 427,818 414,767 
Total deposits14,464 15,012 508,757 512,291 
Total U.S. Bancorp shareholders’ equity12,800 5,766 58,283 53,817 
(a)Presented net of related rewards and rebate costs and certain partner payments of $796 million and $762 million for the three months ended September 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 September 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 $185 million of revenue for the three months ended September 30, 2024 and 2023, respectively, primarily consisting of interest income on sales-type and direct financing leases.
Business segment results for the nine months ended September 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)$5,711 $5,884 $5,737 $6,730 $2,102 $1,933 
Noninterest income3,387 3,120 1,239 1,265 3,146  (a) 3,026  (a)
Total net revenue9,098 9,004 6,976 7,995 5,248 4,959 
Noninterest expense4,135 4,073 4,977 5,246 3,040 2,871 
Income (loss) before provision and income taxes4,963 4,931 1,999 2,749 2,208 2,088 
Provision for credit losses335 271 102 30 1,151 933 
Income (loss) before income taxes4,628 4,660 1,897 2,719 1,057 1,155 
Income taxes and taxable-equivalent adjustment1,158 1,165 475 680 265 288 
Net income (loss)3,470 3,495 1,422 2,039 792 867 
Net (income) loss attributable to noncontrolling interests— — — — — — 
Net income (loss) attributable to U.S. Bancorp$3,470 $3,495 $1,422 $2,039 $792 $867 
  
Average Balance Sheet      
Loans$172,249 $177,161 $155,073 $164,050 $40,766 $37,942 
Other earning assets9,693 6,386 2,300 2,462 92 126 
Goodwill4,825 4,634 4,326 4,514 3,343 3,326 
Other intangible assets1,007 972 4,611 5,378 282 361 
Assets200,912 203,442 168,954 181,735 46,707 43,926 
Noninterest-bearing deposits56,650 73,789 21,068 33,599 2,716 3,052 
Interest-bearing deposits213,572 201,805 200,719 182,267 96 104 
Total deposits270,222 275,594 221,787 215,866 2,812 3,156 
Total U.S. Bancorp shareholders’ equity21,506 22,249 14,552 16,246 9,955 9,181 
 
 Treasury and Corporate Support Consolidated Company  
(Dollars in Millions)202420232024 2023 
Condensed Income Statement     
Net interest income (taxable-equivalent basis)$(1,317)$(1,162)$12,233  $13,385 
Noninterest income441 586 8,213 (b)7,997 (b)
Total net revenue(876)(576)20,446 (c)21,382 (c)
Noninterest expense725 1,464 12,877 13,654 
Income (loss) before provision and income taxes(1,601)(2,040)7,569  7,728 
Provision for credit losses90 529 1,678  1,763 
Income (loss) before income taxes(1,691)(2,569)5,891  5,965 
Income taxes and taxable-equivalent adjustment(666)(765)1,232  1,368 
Net income (loss)(1,025)(1,804)4,659  4,597 
Net (income) loss attributable to noncontrolling interests(23)(15)(23) (15)
Net income (loss) attributable to U.S. Bancorp$(1,048)$(1,819)$4,636  $4,582 
Average Balance Sheet     
Loans$5,190 $4,959 $373,278  $384,112 
Other earning assets218,717 215,805 230,802  224,779 
Goodwill— — 12,494  12,474 
Other intangible assets9 19 5,909  6,730 
Assets244,790 238,378 661,363  667,481 
Noninterest-bearing deposits2,606 3,116 83,040  113,556 
Interest-bearing deposits11,149 8,901 425,536  393,077 
Total deposits13,755 12,017 508,576  506,633 
Total U.S. Bancorp shareholders’ equity10,653 5,764 56,666  53,440 
(a)Presented net of related rewards and rebate costs and certain partner payments of $2.3 billion and $2.2 billion for the nine months ended September 30, 2024 and 2023, respectively.
(b)Includes revenue generated from certain contracts with customers of $6.8 billion and $6.6 billion for the nine months ended September 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 $577 million and $554 million of revenue for the nine months ended September 30, 2024 and 2023, respectively, primarily consisting of interest income on sales-type and direct financing leases.