10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from (not applicable)

Commission file number 1-6880

U.S. BANCORP

(Exact name of registrant as specified in its charter)

Delaware	41-0255900
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

800 Nicollet Mall

Minneapolis, Minnesota 55402

(Address of principal executive offices, including zip code)

651-466-3000

(Registrant’s telephone number, including area code)

(not applicable)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbols	Name of each exchange on which registered
Common Stock, $.01 par value per share	USB	New York Stock Exchange
Depositary Shares (each representing 1/100th interest in a share of Series A Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrA	New York Stock Exchange
Depositary Shares (each representing 1/1,000th interest in a share of Series B Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrH	New York Stock Exchange
Depositary Shares (each representing 1/1,000th interest in a share of Series K Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrP	New York Stock Exchange
Depositary Shares (each representing 1/1,000th interest in a share of Series L Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrQ	New York Stock Exchange
Depositary Shares (each representing 1/1,000th interest in a share of Series M Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrR	New York Stock Exchange
Depositary Shares (each representing 1/1,000th interest in a share of Series O Non-Cumulative Perpetual Preferred Stock, par value $1.00)	USB PrS	New York Stock Exchange
0.850% Medium-Term Notes, Series X (Senior), due June 7, 2024	USB/24B	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.

YES ☑    NO ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

YES ☑    NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES ☐    NO ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding as of July 31, 2022
Common Stock, $0.01 Par Value	1,485,784,028 shares

Table of Contents and Form 10-Q Cross Reference Index

Part I — Financial Information
1) Management’s Discussion and Analysis of Financial Condition and Results of Operations (Item 2)	4
a) Overview	4
b) Statement of Income Analysis	5
c) Balance Sheet Analysis	7
d) Non-GAAP Financial Measures	31
e) Critical Accounting Policies	33
f) Controls and Procedures (Item 4)	33
2) Quantitative and Qualitative Disclosures About Market Risk/Corporate Risk Profile (Item 3)	9
a) Overview	9
b) Credit Risk Management	10
c) Residual Value Risk Management	21
d) Operational Risk Management	21
e) Compliance Risk Management	21
f) Interest Rate Risk Management	21
g) Market Risk Management	23
h) Liquidity Risk Management	24
i) Capital Management	26
3) Line of Business Financial Review	27
4) Financial Statements (Item 1)	34
Part II — Other Information
1) Legal Proceedings (Item 1)	76
2) Risk Factors (Item 1A)	76
3) Unregistered Sales of Equity Securities and Use of Proceeds (Item 2)	76
4) Exhibits (Item 6)	76
5) Signature	77
6) Exhibits	78

U.S. Bancorp 1

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995.

This quarterly report on Form 10-Q contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. These forward-looking statements cover, among other things, anticipated future revenue and expenses and the future plans and prospects of U.S. Bancorp. Forward-looking statements often use words such as “anticipates,” “targets,” “expects,” “hopes,” “estimates,” “projects,” “forecasts,” “intends,” “plans,” “goals,” “believes,” “continue” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements involve inherent risks and uncertainties, including the following risks and uncertainties and the risks and uncertainties more fully discussed in the section entitled “Risk Factors” of Exhibit 13 to U.S. Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2021, which could cause actual results to differ materially from those anticipated. Continued deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect U.S. Bancorp’s revenues and the values of its assets and liabilities, reduce the availability of funding to certain financial institutions, lead to a tightening of credit, and increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices could affect U.S. Bancorp in substantial and unpredictable ways. U.S. Bancorp’s results could also be adversely affected by changes in interest rates; the impacts of the COVID-19 pandemic on its business, financial position, results of operations, liquidity and prospects; increases in unemployment rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; deterioration in the value of its investment securities; legal and regulatory developments; litigation; increased competition from both banks and non-banks; civil unrest; the effects of climate change; changes in customer behavior and preferences; breaches in data security, including as a result of work-from-home arrangements; failures to safeguard personal information; the impacts of international hostilities or geopolitical events; impacts of supply chain disruptions and rising inflation; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputation risk. In addition, U.S. Bancorp’s proposed acquisition of MUFG Union Bank presents risks and uncertainties, including, among others: the risk that the cost savings, any revenue synergies and other anticipated benefits of the proposed acquisition may not be realized or may take longer than anticipated to be realized; the risk that U.S. Bancorp’s business could be disrupted as a result of the announcement and pendency of the proposed acquisition and diversion of management’s attention from ongoing business operations and opportunities; the possibility that the proposed acquisition, including the integration of MUFG Union Bank, may be more costly or difficult to complete than anticipated; delays in closing the proposed acquisition; and the failure of required governmental approvals to be obtained or any other closing conditions in the definitive purchase agreement to be satisfied.

For discussion of these and other risks that may cause actual results to differ from those described in forward-looking statements, refer to U.S. Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2021, on file with the Securities and Exchange Commission, including the sections entitled “Corporate Risk Profile” and “Risk Factors” contained in Exhibit 13, and all subsequent filings with the Securities and Exchange Commission under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934. In addition, factors other than these risks also could adversely affect U.S. Bancorp’s results, and the reader should not consider these risks to be a complete set of all potential risks or uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date hereof, and U.S. Bancorp undertakes no obligation to update them in light of new information or future events.

2 U.S. Bancorp

 Table 1    Selected Financial Data

	Three Months Ended June 30									Six Months Ended June 30
(Dollars and Shares in Millions, Except Per Share Data)	2022			2021			Percent Change			2022			2021			Percent Change
Condensed Income Statement
Net interest income	$	3,435		$	3,137			9.5	%	$	6,608		$	6,200			6.6	%
Taxable-equivalent adjustment (a)		29			27			7.4			56			53			5.7
Net interest income (taxable-equivalent basis) (b)		3,464			3,164			9.5			6,664			6,253			6.6
Noninterest income		2,548			2,619			(2.7	)		4,944			5,000			(1.1	)
Total net revenue		6,012			5,783			4.0			11,608			11,253			3.2
Noninterest expense		3,724			3,387			9.9			7,226			6,766			6.8
Provision for credit losses		311			(170	)		*			423			(997	)		*
Income before taxes		1,977			2,566			(23.0	)		3,959			5,484			(27.8	)
Income taxes and taxable-equivalent adjustment		443			578			(23.4	)		867			1,211			(28.4	)
Net income		1,534			1,988			(22.8	)		3,092			4,273			(27.6	)
Net (income) loss attributable to noncontrolling interests		(3	)		(6	)		50.0			(4	)		(11	)		63.6
Net income attributable to U.S. Bancorp	$	1,531		$	1,982			(22.8	)	$	3,088		$	4,262			(27.5	)
Net income applicable to U.S. Bancorp common shareholders	$	1,464		$	1,914			(23.5	)	$	2,930		$	4,089			(28.3	)
Per Common Share
Earnings per share	$	.99		$	1.29			(23.3	)%	$	1.97		$	2.73			(27.8	)%
Diluted earnings per share		.99			1.28			(22.7	)		1.97			2.73			(27.8	)
Dividends declared per share		.46			.42			9.5			.92			.84			9.5
Book value per share (c)		28.13			31.74			(11.4	)
Market value per share		46.02			56.97			(19.2	)
Average common shares outstanding		1,486			1,489			(.2	)		1,485			1,495			(.7	)
Average diluted common shares outstanding		1,487			1,490			(.2	)		1,486			1,497			(.7	)
Financial Ratios
Return on average assets		1.06	%		1.44	%					1.08	%		1.56	%
Return on average common equity		13.9			16.3						13.3			17.6
Net interest margin (taxable-equivalent basis) (a)		2.59			2.53						2.51			2.52
Efficiency ratio (b)		62.1			59.0						62.4			60.5
Net charge-offs as a percent of average loans outstanding		.20			.25						.20			.28
Average Balances
Loans	$	324,187		$	294,284			10.2	%	$	318,608		$	294,138			8.3	%
Loans held for sale		3,688			7,825			(52.9	)		4,579			8,922			(48.7	)
Investment securities (d)		171,296			160,615			6.7			173,019			153,109			13.0
Earning assets		536,761			500,751			7.2			533,318			499,239			6.8
Assets		579,911			551,365			5.2			578,663			550,057			5.2
Noninterest-bearing deposits		120,827			125,297			(3.6	)		124,375			121,844			2.1
Deposits		456,516			429,210			6.4			455,352			427,795			6.4
Short-term borrowings		23,294			16,462			41.5			21,178			14,794			43.2
Long-term debt		31,390			36,190			(13.3	)		32,177			37,817			(14.9	)
Total U.S. Bancorp shareholders’ equity		49,166			52,962			(7.2	)		51,304			52,846			(2.9	)
	June 30, 2022			December 31, 2021
Period End Balances
Loans	$	332,369		$	312,028			6.5	%
Investment securities		160,309			174,821			(8.3	)
Assets		591,381			573,284			3.2
Deposits		467,102			456,083			2.4
Long-term debt		29,408			32,125			(8.5	)
Total U.S. Bancorp shareholders’ equity		48,605			54,918			(11.5	)
Asset Quality
Nonperforming assets	$	770		$	878			(12.3	)%
Allowance for credit losses		6,255			6,155			1.6
Allowance for credit losses as a percentage of period-end loans		1.88	%		1.97	%
Capital Ratios
Common equity tier 1 capital		9.7	%		10.0	%
Tier 1 capital		11.4			11.6
Total risk-based capital		13.2			13.4
Leverage		8.6			8.6
Total leverage exposure		7.1			6.9
Tangible common equity to tangible assets (b)		5.5			6.8
Tangible common equity to risk-weighted assets (b)		7.2			9.2
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (b)		9.4			9.6

* Not meaningful    

(a) Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes.    

(b) See Non-GAAP Financial Measures beginning on page 31.    

(c) Calculated as U.S. Bancorp common shareholders’ equity divided by common shares outstanding at end of the period.    

(d) Excludes unrealized gains and losses on available-for-sale investment securities and any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity.

U.S. Bancorp 3

Management’s Discussion and Analysis

OVERVIEW

Earnings Summary U.S. Bancorp and its subsidiaries (the “Company”) reported net income attributable to U.S. Bancorp of $1.5 billion for the second quarter of 2022, or $0.99 per diluted common share, compared with $2.0 billion, or $1.28 per diluted common share, for the second quarter of 2021. Return on average assets and return on average common equity were 1.06 percent and 13.9 percent, respectively, for the second quarter of 2022, compared with 1.44 percent and 16.3 percent, respectively, for the second quarter of 2021. The results for the second quarter of 2022 included the impact of $197 million ($153 million net-of-tax) of merger and integration-related charges associated with the planned acquisition of MUFG Union Bank’s core regional banking franchise from Mitsubishi UFJ Financial Group, Inc. (“MUFG”), which decreased diluted earnings per common share by $0.10.

Total net revenue for the second quarter of 2022 was $229 million (4.0 percent) higher than the second quarter of 2021, reflecting a 9.5 percent increase in net interest income and a 2.7 percent decrease in noninterest income. The increase in net interest income from the second quarter of 2021 was primarily due to higher average loan and investment securities balances, as well as rising interest rates in the current year and the impact of a favorable yield curve on earning assets, partially offset by deposit pricing changes and lower loan fees driven by the impact of loan forgiveness related to the Small Business Administration (“SBA”) Paycheck Protection Program in the second quarter of 2021. The reduction in noninterest income reflected lower mortgage banking revenue as refinancing activities declined, lower other noninterest income and lower gains on the sale of securities, mostly offset by higher payment services revenue and trust and investment management fees.

Noninterest expense in the second quarter of 2022 was $337 million (9.9 percent) higher than the second quarter of 2021, reflecting increases in compensation expense, employee benefits expense, marketing and business development expense, and the impact of merger and integration-related charges of $197 million.

The provision for credit losses for the second quarter of 2022 was $311 million, compared with a benefit of $170 million for the second quarter of 2021. The provision for credit losses in the second quarter of 2022 reflected the impact of loan growth and increasing economic uncertainty. The provision for credit losses for the second quarter of 2021 reflected a decrease in the allowance for credit losses as a result of improving economic conditions and credit quality. Net charge-offs in the second quarter of 2022 were $161 million, compared with $180 million in the second quarter of 2021. Refer to “Corporate Risk Profile” for further information on the provision for credit losses, net charge-offs, nonperforming assets and other factors considered by the Company in assessing the credit quality of the loan portfolio and establishing the allowance for credit losses.

Net income attributable to U.S. Bancorp for the first six months of 2022 was $3.1 billion, or $1.97 per diluted common share, compared with $4.3 billion, or $2.73 per diluted common share, for the first six months of 2021. Return on average assets and return on average common equity were 1.08 percent and 13.3 percent, respectively, for the first six months of 2022, compared with 1.56 percent and 17.6 percent, respectively, for the first six months of 2021.

Total net revenue for the first six months of 2022 was $355 million (3.2 percent) higher than the first six months of 2021, reflecting a 6.6 percent increase in net interest income and a 1.1 percent decrease in noninterest income. The increase in net interest income from the first six months of 2021 was primarily due to higher average loan and investment securities balances, as well as rising interest rates in the current year and the impact of a favorable yield curve on earning assets, partially offset by deposit pricing changes and lower loan fees driven by the impact of loan forgiveness related to the SBA Paycheck Protection Program in the first six months of 2021. The reduction in noninterest income reflected lower mortgage banking revenue, lower other noninterest income and lower gains on the sale of securities, mostly offset by higher payment services revenue and trust and investment management fees.

Noninterest expense in the first six months of 2022 was $460 million (6.8 percent) higher than the first six months of 2021, reflecting increases in compensation expense, employee benefits expense, marketing and business development expense, professional services expense and the impact of merger and integration-related charges of $197 million.

The provision for credit losses for the first six months of 2022 was $423 million, compared with a benefit of

4 U.S. Bancorp

$997 million for the first six months of 2021. The provision for credit losses for the first six months of 2022 reflected the impact of loan growth and increasing economic uncertainty. The provision for credit losses for the first six months of 2021 reflected a decrease in the allowance for credit losses as a result of improving economic conditions and credit quality. Net charge-offs in the first six months of 2022 were $323 million, compared with $403 million in the first six months of 2021. Refer to “Corporate Risk Profile” for further information on the provision for credit losses, net charge-offs, nonperforming assets and other factors considered by the Company in assessing the credit quality of the loan portfolio and establishing the allowance for credit losses.

Pending Acquisition In September 2021, the Company announced that it entered into a definitive agreement to acquire MUFG Union Bank’s core regional banking franchise, for an expected purchase price of approximately $8.0 billion, including $5.5 billion in cash and approximately 44 million shares of the Company’s common stock. The transaction excludes the purchase of substantially all of MUFG Union Bank’s Global Corporate & Investment Bank (other than certain deposits), certain middle and back office functions, and other assets. MUFG Union Bank has approximately 300 branches in California, Washington and Oregon and is expected to add approximately $105 billion in total assets, $58 billion of loans and $90 billion of deposits to the Company’s consolidated balance sheet. Closing of the transaction is subject to customary closing conditions, including regulatory approvals which are not within the Company’s control. The parties continue to make significant progress in planning for closing and integration while awaiting regulatory approvals. At this time, the Company expects to receive U.S. regulatory approvals in time for closing to occur in the second half of 2022.

STATEMENT OF INCOME ANALYSIS

Net Interest Income Net interest income, on a taxable-equivalent basis, was $3.5 billion in the second quarter and $6.7 billion in the first six months of 2022, representing increases of $300 million (9.5 percent) and $411 million (6.6 percent), respectively, compared with the same periods of 2021. The increases were primarily due to higher loan and investment securities balances, in addition to rising interest rates in the current year and a favorable yield curve impacting earning assets, partially offset by deposit pricing changes and lower loan fees driven by the impact of loan forgiveness related to the SBA Paycheck Protection Program in the first six months of 2021. Average earning assets for the second quarter and first six months of 2022 were $36.0 billion (7.2 percent) and $34.1 billion (6.8 percent) higher, respectively, than the same periods of the prior year, reflecting increases in investment securities and loans, partially offset by decreases in interest-bearing deposits with banks. The net interest margin, on a taxable-equivalent basis, in the second quarter and first six months of 2022 was 2.59 percent and 2.51 percent, respectively, compared with 2.53 percent and 2.52 percent in the second quarter and first six months of 2021, respectively. The increase in net interest margin in the second quarter of 2022, compared with the second quarter of 2021, was primarily due to the net impact of rising interest rates in the current year and higher yields in the investment portfolio, partially offset by deposit pricing and loan mix changes. The decrease in net interest margin in the first six months of 2022, compared with the first six months of 2021, was primarily driven by earning asset mix and lower loan fees driven by the impact of loan forgiveness related to the SBA Paycheck Protection Program. Refer to the “Consolidated Daily Average Balance Sheet and Related Yields and Rates” table for further information on net interest income.

Average total loans in the second quarter and first six months of 2022 were $29.9 billion (10.2 percent) and $24.5 billion (8.3 percent) higher, respectively, than the same periods of 2021. The increases were primarily due to strong growth in commercial loans, residential mortgages and other retail loans. The increase in commercial loans was primarily due to higher utilization driven by working capital needs of corporate customers, slower payoffs given higher volatility in the capital markets, as well as core growth, partially offset by expected reductions related to the forgiveness of loans in the SBA Paycheck Protection Program. The increase in residential mortgages was driven by stronger on-balance sheet loan activities and slower refinance activity. The increase in other retail loans was driven by higher auto and recreational vehicle loans, partially offset by lower retail leasing balances and home equity and second mortgages.

Average investment securities in the second quarter and first six months of 2022 were $10.7 billion (6.7 percent) and $19.9 billion (13.0 percent) higher, respectively, than the same periods of 2021, primarily due to purchases of mortgage-backed and U.S. Treasury securities, net of prepayments, sales and maturities.

Average total deposits for the second quarter and first six months of 2022 were $27.3 billion (6.4 percent) and $27.6 billion (6.4 percent) higher, respectively, than the same periods of 2021. Average total savings deposits

for the second quarter and first six months of 2022 were $29.7 billion (10.6 percent) and $25.1 billion (9.0 percent) higher, respectively, than the same periods of the prior year, driven by increases in Corporate and Commercial Banking, and Consumer and Business

U.S. Bancorp 5

Banking balances. Average time deposits for the second quarter and first six months of 2022 were $2.1 billion (8.5 percent) higher and $115 million (0.4 percent) lower, respectively, than the same periods of the prior year. The changes in time deposits were primarily driven by increases in Corporate and Commercial Banking balances, offset by decreases in Consumer and Business Banking balances. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics. Average noninterest-bearing deposits for the second quarter of 2022 were $4.5 billion (3.6 percent) lower than the second quarter of 2021, driven by decreases in Corporate and Commercial Banking, Consumer and Business Banking, and Payment Services balances, partially offset by an increase in Wealth Management and Investment Services balances. Average noninterest-bearing deposits for the first six months of 2022 were $2.5 billion (2.1 percent) higher than the first six months of 2021, primarily due to increases in Wealth Management and Investment Services, and Corporate and Commercial Banking balances, partially offset by decreases in Payment Services and Consumer and Business Banking balances.

Provision for Credit Losses The provision for credit losses was $311 million in the second quarter and $423 million in first six months of 2022, compared with a benefit of $170 million and $997 million, respectively, for the same periods of 2021. The provision for credit losses in the second quarter and first six months of 2022 reflected the impact of loan growth and increasing economic uncertainty primarily associated with ongoing supply chain challenges and rising inflationary concerns. The provision for credit losses in the second quarter and first six months of 2021 reflected the enactment of additional government stimulus programs and widespread COVID-19 vaccine availability, contributing to economic improvement during the period, which resulted in significant decreases in the allowance for credit losses. Net charge-offs decreased $19 million (10.6 percent) in the second quarter and $80 million (19.9 percent) in the first six months of 2022, compared with the same periods of the prior year, primarily driven by lower credit card net charge-offs. Refer to “Corporate Risk Profile” for further information on the provision for credit losses, net charge-offs, nonperforming assets and other factors considered by the Company in assessing the credit quality of the loan portfolio and establishing the allowance for credit losses.

Noninterest Income Noninterest income was $2.5 billion in the second quarter and $4.9 billion in the first six months of 2022, representing decreases of $71 million (2.7 percent) and $56 million (1.1 percent), respectively, compared with the same periods of 2021. The decreases from the prior year reflected lower mortgage banking revenue, lower other noninterest income and lower gains on the sale of securities, mostly offset by higher payment services revenue and trust and investment management fees. Mortgage banking revenue decreased primarily due to lower application volume, given declining refinance activities experienced in the mortgage industry, lower related gain on sale margins and lower performing loan sales, partially offset by increases in mortgage servicing rights (“MSRs”) valuations, net of hedging activities. Other noninterest income decreased primarily due to lower retail leasing end-of-term residual gains and lower gains on sales of certain assets. Payment services revenue increased as a result of increases in corporate payment products revenue due to higher sales volume and increases in merchant processing services revenue driven by higher sales volume and merchant fees. Trust and investment management fees increased primarily due to business growth, activity related to the fourth quarter of 2021 acquisition of PFM Asset Management LLC (“PFM”) and lower money market fee waivers.

 Table 2    Noninterest Income

	Three Months Ended June 30							Six Months Ended June 30
(Dollars in Millions)	2022		2021		Percent Change			2022		2021		Percent Change
Credit and debit card revenue	$	399	$	396		.8	%	$	737	$	732		.7	%
Corporate payment products revenue		172		138		24.6			330		264		25.0
Merchant processing services		425		374		13.6			788		692		13.9
Trust and investment management fees		566		446		26.9			1,066		890		19.8
Deposit service charges		165		176		(6.3	)		342		337		1.5
Treasury management fees		169		160		5.6			325		307		5.9
Commercial products revenue		290		280		3.6			556		560		(.7	)
Mortgage banking revenue		142		346		(59.0	)		342		645		(47.0	)
Investment products fees		59		60		(1.7	)		121		115		5.2
Securities gains (losses), net		19		43		(55.8	)		37		68		(45.6	)
Other		142		200		(29.0	)		300		390		(23.1	)
Total noninterest income	$	2,548	$	2,619		(2.7	)%	$	4,944	$	5,000		(1.1	)%

6 U.S. Bancorp

Noninterest Expense Noninterest expense was $3.7 billion in the second quarter and $7.2 billion in the first six months of 2022, representing increases of $337 million (9.9 percent) and $460 million (6.8 percent), respectively, over the same periods of 2021. The increases from the prior year reflected higher compensation expense, employee benefits expense, marketing and business development expense, and the impact of merger and integration-related charges associated with the planned acquisition of MUFG Union Bank. Compensation expense increased primarily due to merit increases and hiring to support business growth, partially offset by lower performance-based incentives. Employee benefits expense increased primarily driven by higher medical expenses. Marketing and business development expense increased due to increased travel and entertainment. Marketing and business development expense further increased in the first six months of 2022, compared with the first six months of 2021, due to the timing of marketing campaigns. Noninterest expense further increased in the first six months of 2022, compared with the first six months of 2021, due to higher professional services expense reflecting an increase in business investment and related initiatives during the current year.

Income Tax Expense The provision for income taxes was $414 million (an effective rate of 21.3 percent) for the second quarter and $811 million (an effective rate of 20.8 percent) for the first six months of 2022, compared with $551 million (an effective rate of 21.7 percent) and $1.2 billion (an effective rate of 21.3 percent) for the same periods of 2021, respectively. For further information on income taxes, refer to Note 12 of the Notes to Consolidated Financial Statements.

BALANCE SHEET ANALYSIS

Loans The Company’s loan portfolio was $332.4 billion at June 30, 2022, compared with $312.0 billion at December 31, 2021, an increase of $20.4 billion (6.5 percent). The increase was driven by higher commercial loans, residential mortgages, credit card loans and commercial real estate loans, partially offset by lower other retail loans.

Commercial loans increased $14.0 billion (12.5 percent) at June 30, 2022, compared with December 31, 2021, due to higher utilization driven by working capital needs of corporate customers and slower payoffs given higher volatility in the capital markets, as well as core growth.

Residential mortgages held in the loan portfolio increased $5.6 billion (7.3 percent) at June 30, 2022, compared with December 31, 2021, due to stronger on-balance sheet loan activities and slower refinance activity. Residential mortgages originated and placed in the Company’s loan portfolio include jumbo mortgages and branch-originated first lien home equity loans to borrowers with high credit quality.

Credit card loans increased $1.2 billion (5.3 percent) at June 30, 2022, compared with December 31, 2021, reflecting increased consumer spending and new account growth.

Commercial real estate loans increased $700 million (1.8 percent) at June 30, 2022, compared with December 31, 2021, primarily the result of new originations.

Other retail loans decreased $1.1 billion (1.8 percent) at June 30, 2022, compared with December 31, 2021, due to decreases in auto loans and retail leasing balances, partially offset by an increase in home equity loans.

 Table 3    Noninterest Expense

	Three Months Ended June 30									Six Months Ended June 30
(Dollars in Millions)	2022			2021			Percent Change			2022			2021			Percent Change
Compensation	$	1,872		$	1,798			4.1	%	$	3,725		$	3,601			3.4	%
Employee benefits		374			337			11.0			770			721			6.8
Net occupancy and equipment		265			258			2.7			534			521			2.5
Professional services		111			108			2.8			225			206			9.2
Marketing and business development		106			90			17.8			186			138			34.8
Technology and communications		350			362			(3.3	)		699			721			(3.1	)
Postage, printing and supplies		69			65			6.2			141			134			5.2
Other intangibles		40			40			—			87			78			11.5
Other		340			329			3.3			662			646			2.5
Total before merger and integration charges		3,527			3,387			4.1			7,029			6,766			3.9
Merger and integration charges		197			—			*			197			—			*
Total noninterest expense	$	3,724		$	3,387			9.9	%	$	7,226		$	6,766			6.8	%
Efficiency ratio (a)		62.1	%		59.0	%					62.4	%		60.5	%

* Not meaningful    

a) See Non-GAAP Financial Measures beginning on page 31.

U.S. Bancorp 7

 Table 4    Investment Securities

	June 30, 2022									December 31, 2021
(Dollars in Millions)	Amortized Cost		Fair Value		Weighted- Average Maturity in Years		Weighted- Average Yield (d)			Amortized Cost		Fair Value		Weighted- Average Maturity in Years		Weighted- Average Yield (d)
Held-to-maturity
U.S. Treasury and agencies	$	1,343	$	1,337		3.8		2.85	%	$	—	$	—		—		—	%
Mortgage-backed securities (a)		60,160		54,320		10.0		1.92			41,858		41,812		7.4		1.45
Total held-to-maturity	$	61,503	$	55,657		9.8		1.94	%	$	41,858	$	41,812		7.4		1.45	%
Available-for-sale
U.S. Treasury and agencies	$	25,779	$	23,767		6.9		1.95	%	$	36,648	$	36,609		6.7		1.54	%
Mortgage-backed securities (a)		71,544		65,316		8.0		1.96			85,394		85,564		4.9		1.58
Asset-backed securities (a)		—		—		—		—			62		66		5.2		1.53
Obligations of state and political subdivisions (b) (c)		10,925		9,716		13.0		3.64			10,130		10,717		6.6		3.67
Other		7		7		2.9		2.07			7		7		3.4		2.07
Total available-for-sale	$	108,255	$	98,806		8.2		2.13	%	$	132,241	$	132,963		5.5		1.73	%

(a) Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future prepayments.     

(b) Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to maturity if the security is purchased at par or a discount.

(c) Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity date for securities with a fair value equal to or below par.

(d) Yields on investment securities are computed based on amortized cost balances. Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent.

The Company generally retains portfolio loans through maturity; however, the Company’s intent may change over time based upon various factors such as ongoing asset/liability management activities, assessment of product profitability, credit risk, liquidity needs, and capital implications. If the Company’s intent or ability to hold an existing portfolio loan changes, it is transferred to loans held for sale.

Loans Held for Sale Loans held for sale, consisting primarily of residential mortgages to be sold in the secondary market, were $3.9 billion at June 30, 2022, compared with $7.8 billion at December 31, 2021. The decrease in loans held for sale was principally due to a lower level of mortgage loan closings in the second quarter of 2022, compared with the fourth quarter of 2021. Almost all of the residential mortgage loans the Company originates or purchases for sale follow guidelines that allow the loans to be sold into existing, highly liquid secondary markets, in particular in government agency transactions and to government-sponsored enterprises (“GSEs”).

Investment Securities Investment securities totaled $160.3 billion at June 30, 2022, compared with $174.8 billion at December 31, 2021. The $14.5 billion (8.3 percent) decrease was primarily due to an $11.4 billion unfavorable change in net unrealized gains (losses) on available-for-sale investment securities and $2.3 billion of net investment sales and maturities. During the second quarter of 2022, the Company transferred $17.1 billion amortized cost ($15.7 billion fair value) of available-for-sale investment securities to the held-to-maturity category to reflect its new intent for these securities. Subsequent to June 30, 2022, the Company transferred an additional $19.8 billion amortized cost ($17.6 billion fair value) of available-for-sale investment securities to the held-to-maturity category.

The Company’s available-for-sale investment securities are carried at fair value with changes in fair value reflected in other comprehensive income (loss) unless a portion of a security’s unrealized loss is related to credit and an allowance for credit losses is necessary. At June 30, 2022, the Company’s net unrealized losses on available-for-sale investment securities were $9.4 billion, compared with $722 million of net unrealized gains at December 31, 2021. The unfavorable change in net unrealized gains (losses) was primarily due to decreases in the fair value of mortgage-backed, U.S. Treasury and state and political securities as a result of changes in interest rates, partially offset by the impact of the transfer of available-for-sale investment securities to the held-to-maturity category. Gross unrealized losses on available-for-sale investment securities totaled $9.5 billion at June 30, 2022, compared with $812 million at December 31, 2021. At June 30, 2022, the Company had no plans to sell securities with unrealized losses, and believed it is more likely than not that it would not be required to sell such securities before recovery of their amortized cost.

Refer to Notes 4 and 15 in the Notes to Consolidated Financial Statements for further information on investment securities.

Deposits Total deposits were $467.1 billion at June 30, 2022, compared with $456.1 billion at December 31, 2021. The $11.0 billion (2.4 percent) increase in total

8 U.S. Bancorp

deposits reflected increases in total savings deposits and time deposits, partially offset by a decrease in noninterest-bearing deposits. Money market deposit balances increased $8.9 billion (7.6 percent) at June 30, 2022, compared with December 31, 2021, primarily due to higher Wealth Management and Investment Services, and Corporate and Commercial Banking balances. Savings account balances increased $2.3 billion (3.4 percent), driven by higher Consumer and Business Banking balances. Interest checking balances decreased $2.4 billion (2.0 percent), primarily due to lower Wealth Management and Investment Services balances, partially offset by higher Corporate and Commercial Banking, and Consumer and Business Banking balances. Time deposits increased $8.0 billion (35.1 percent) at June 30, 2022, compared with December 31, 2021, driven by higher Corporate and Commercial Banking balances, partially offset by lower Consumer and Business Banking balances. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics. Noninterest-bearing deposits decreased $5.8 billion (4.3 percent) at June 30, 2022, compared with December 31, 2021, primarily due to lower Corporate and Commercial Banking balances, partially offset by higher Wealth Management and Investment Services balances.

Borrowings The Company utilizes both short-term and long-term borrowings as part of its asset/liability management and funding strategies. Short-term borrowings, which include federal funds purchased, commercial paper, repurchase agreements, borrowings secured by high-grade assets and other short-term borrowings, were $25.0 billion at June 30, 2022, compared with $11.8 billion at December 31, 2021. The $13.2 billion increase in short-term borrowings was primarily due to increases in short-term Federal Home Loan Bank (“FHLB”) advances and commercial paper balances. Long-term debt was $29.4 billion at June 30, 2022, compared with $32.1 billion at December 31, 2021. The $2.7 billion (8.5 percent) decrease was primarily due to $2.6 billion of bank note repayments and maturities, $1.3 billion of subordinated note repayments and $1.0 billion of medium-term note repayments, partially offset by $2.1 billion of medium-term note issuances. Refer to the “Liquidity Risk Management” section for discussion of liquidity management of the Company.

CORPORATE RISK PROFILE

Overview Managing risks is an essential part of successfully operating a financial services company. The Company’s Board of Directors has approved a risk management framework which establishes governance and risk management requirements for all risk-taking activities. This framework includes Company and business line risk appetite statements which set boundaries for the types and amount of risk that may be undertaken in pursuing business objectives and initiatives. The Board of Directors, primarily through its Risk Management Committee, oversees performance relative to the risk management framework, risk appetite statements, and other policy requirements.

The Executive Risk Committee (“ERC”), which is chaired by the Chief Risk Officer and includes the Chief Executive Officer and other members of the executive management team, oversees execution against the risk management framework and risk appetite statements. The ERC focuses on current and emerging risks, including strategic and reputation risks, by directing timely and comprehensive actions. Senior operating committees have also been established, each responsible for overseeing a specified category of risk.

The Company’s most prominent risk exposures are credit, interest rate, market, liquidity, operational, compliance, strategic, and reputation. Credit risk is the risk of loss associated with a change in the credit profile or the failure of a borrower or counterparty to meet its contractual obligations. Interest rate risk is the current or prospective risk to earnings and capital, or market valuations, arising from the impact of changes in interest rates. Market risk arises from fluctuations in interest rates, foreign exchange rates, and security prices that may result in changes in the values of financial instruments, such as trading and available-for-sale securities, mortgage loans held for sale (“MLHFS”), MSRs and derivatives that are accounted for on a fair value basis. Liquidity risk is the risk that financial condition or overall safety and soundness is adversely affected by the Company’s inability, or perceived inability, to meet its cash flow obligations in a timely and complete manner in either normal or stressed conditions. Operational risk is the risk to current or projected financial condition and resilience arising from inadequate or failed internal processes or systems, people (including human errors or misconduct), or adverse external events, including the risk of loss resulting from breaches in data security. Operational risk can also include the risk of loss due to failures by third parties with which the Company does business. Compliance risk is the risk that the Company may suffer legal or regulatory sanctions, financial losses, and reputational damage if it fails to adhere to compliance requirements and the Company’s compliance policies. Strategic risk is the risk to current or projected financial condition and resilience arising from adverse business decisions, poor implementation of business decisions, or

U.S. Bancorp 9

lack of responsiveness to changes in the banking industry and operating environment. Reputation risk is the risk to current or anticipated earnings, capital, or franchise or enterprise value arising from negative public opinion. This risk may impair the Company’s competitiveness by affecting its ability to establish new relationships or services, or continue serving existing relationships. In addition to the risks identified above, other risk factors exist that may impact the Company. Refer to “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, for a detailed discussion of these factors.

The Company’s Board and management-level governance committees are supported by a “three lines of defense” model for establishing effective checks and balances. The first line of defense, the business lines, manages risks in conformity with established limits and policy requirements. In turn, business line leaders and their risk officers establish programs to ensure conformity with these limits and policy requirements. The second line of defense, which includes the Chief Risk Officer’s organization as well as policy and oversight activities of corporate support functions, translates risk appetite and strategy into actionable risk limits and policies. The second line of defense monitors first line of defense conformity with limits and policies, and provides reporting and escalation of emerging risks and other concerns to senior management and the Risk Management Committee of the Board of Directors. The third line of defense, internal audit, is responsible for providing the Audit Committee of the Board of Directors and senior management with independent assessment and assurance regarding the effectiveness of the Company’s governance, risk management and control processes.

Management regularly provides reports to the Risk Management Committee of the Board of Directors. The Risk Management Committee discusses with management the Company’s risk management performance, and provides a summary of key risks to the entire Board of Directors, covering the status of existing matters, areas of potential future concern and specific information on certain types of loss events. The Risk Management Committee considers quarterly reports by management assessing the Company’s performance relative to the risk appetite statements and the associated risk limits, including:

• Macroeconomic environment and other qualitative considerations, such as regulatory and compliance changes, litigation developments, geopolitical events, and technology and cybersecurity;

• Credit measures, including adversely rated and nonperforming loans, leveraged transactions, credit concentrations and lending limits;

• Interest rate and market risk, including market value and net income simulation, and trading-related Value at Risk (“VaR”);

• Liquidity risk, including funding projections under various stressed scenarios;

• Operational and compliance risk, including losses stemming from events such as fraud, processing errors, control breaches, breaches in data security or adverse business decisions, as well as reporting on technology performance, and various legal and regulatory compliance measures;

• Capital ratios and projections, including regulatory measures and stressed scenarios; and

• Strategic and reputation risk considerations, impacts and responses.

Credit Risk Management The Company’s strategy for credit risk management includes well-defined, centralized credit policies, uniform underwriting criteria, and ongoing risk monitoring and review processes for all commercial and consumer credit exposures. In evaluating its credit risk, the Company considers changes, if any, in underwriting activities, the loan portfolio composition (including product mix and geographic, industry or customer-specific concentrations), collateral values, trends in loan performance and macroeconomic factors, such as changes in unemployment rates, gross domestic product levels and consumer bankruptcy filings. The Risk Management Committee oversees the Company’s credit risk management process.

In addition, credit quality ratings as defined by the Company are an important part of the Company’s overall credit risk management and evaluation of its allowance for credit losses. Loans with a pass rating represent those loans not classified on the Company’s rating scale for problem credits, as minimal credit risk has been identified. Loans with a special mention or classified rating, including consumer lending and small business loans that are 90 days or more past due and still accruing, nonaccrual loans, those loans considered troubled debt restructurings (“TDRs”), and loans in a junior lien position that are current but are behind a first lien position on nonaccrual, encompass all loans held by the Company that it considers to have a potential or well-defined weakness that may put full collection of contractual cash flows at risk. The Company’s internal credit quality ratings for consumer loans are primarily based on delinquency and nonperforming status, except for a limited population of larger loans within those portfolios that are individually evaluated. For this limited population, the determination of the internal credit quality rating may also consider collateral value and customer cash flows. Refer to Note 5 in the Notes to

10 U.S. Bancorp

Consolidated Financial Statements for further discussion of the Company’s loan portfolios including internal credit quality ratings. In addition, refer to “Management’s Discussion and Analysis — Credit Risk Management” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, for a more detailed discussion on credit risk management processes.

The Company manages its credit risk, in part, through diversification of its loan portfolio which is achieved through limit setting by product type criteria, such as industry, and identification of credit concentrations. As part of its normal business activities, the Company offers a broad array of lending products. The Company categorizes its loan portfolio into two segments, which is the level at which it develops and documents a systematic methodology to determine the allowance for credit losses. The Company’s two loan portfolio segments are commercial lending and consumer lending.

The commercial lending segment includes loans and leases made to small business, middle market, large corporate, commercial real estate, financial institution, non-profit and public sector customers. Key risk characteristics relevant to commercial lending segment loans include the industry and geography of the borrower’s business, purpose of the loan, repayment source, borrower’s debt capacity and financial flexibility, loan covenants, and nature of pledged collateral, if any, as well as macroeconomic factors such as unemployment rates, gross domestic product levels, corporate bond spreads and long-term interest rates. These risk characteristics, among others, are considered in determining estimates about the likelihood of default by the borrowers and the severity of loss in the event of default. The Company considers these risk characteristics in assigning internal risk ratings to, or forecasting losses on, these loans, which are the significant factors in determining the allowance for credit losses for loans in the commercial lending segment.

The consumer lending segment represents loans and leases made to consumer customers, including residential mortgages, credit card loans, and other retail loans such as revolving consumer lines, auto loans and leases, home equity loans and lines, and student loans, a run-off portfolio. Home equity or second mortgage loans are junior lien closed-end accounts fully disbursed at origination. These loans typically are fixed rate loans, secured by residential real estate, with a 10- or 15-year fixed payment amortization schedule. Home equity lines are revolving accounts giving the borrower the ability to draw and repay balances repeatedly, up to a maximum commitment, and are secured by residential real estate. These include accounts in either a first or junior lien position. Typical terms on home equity lines in the portfolio are variable rates benchmarked to the prime rate, with a 10- or 15-year draw period during which a minimum payment is equivalent to the monthly interest, followed by a 20- or 10-year amortization period, respectively. At June 30, 2022, substantially all of the Company’s home equity lines were in the draw period. Key risk characteristics relevant to consumer lending segment loans primarily relate to the borrowers’ capacity and willingness to repay and include unemployment rates, consumer bankruptcy filings and other macroeconomic factors, customer payment history and credit scores, and in some cases, updated loan-to-value (“LTV”) information reflecting current market conditions on real estate-based loans. These and other risk characteristics are reflected in forecasts of delinquency levels, bankruptcies and losses which are the primary factors in determining the allowance for credit losses for the consumer lending segment.

The Company further disaggregates its loan portfolio segments into various classes based on their underlying risk characteristics. The two classes within the commercial lending segment are commercial loans and commercial real estate loans. The three classes within the consumer lending segment are residential mortgages, credit card loans and other retail loans.

The Company’s consumer lending segment utilizes several distinct business processes and channels to originate consumer credit, including traditional branch lending, mobile and on-line banking, indirect lending, alliance partnerships and correspondent banks. Each distinct underwriting and origination activity manages unique credit risk characteristics and prices its loan production commensurate with the differing risk profiles.

Residential mortgage originations are generally limited to prime borrowers and are performed through the Company’s branches, loan production offices, mobile and on-line services and a wholesale network of originators. The Company may retain residential mortgage loans it originates on its balance sheet or sell the loans into the secondary market while retaining the servicing rights and customer relationships. Utilizing the secondary markets enables the Company to effectively reduce its credit and other asset/liability risks. For residential mortgages that are retained in the Company’s portfolio and for home equity and second mortgages, credit risk is also diversified by geography and managed by adherence to LTV and borrower credit criteria during the underwriting process.

The Company estimates updated LTV information on its outstanding residential mortgages quarterly, based on a method that combines automated valuation model updates and relevant home price indices. LTV is the ratio of the loan’s outstanding principal balance to the current estimate of property value. For home equity and second

U.S. Bancorp 11

mortgages, combined loan-to-value (“CLTV”) is the combination of the first mortgage original principal balance and the second lien outstanding principal balance, relative to the current estimate of property value. Certain loans do not have an LTV or CLTV, primarily due to lack of availability of relevant automated valuation model and/or home price indices values, or lack of necessary valuation data on acquired loans.

The following tables provide summary information of residential mortgages and home equity and second mortgages by LTV at June 30, 2022:

Residential Mortgages (Dollars in Millions)	Interest Only		Amortizing		Total		Percent of Total
Loan-to-Value
Less than or equal to 80%	$	4,391	$	68,699	$	73,090		89.0	%
Over 80% through 90%		2		1,605		1,607		2.0
Over 90% through 100%		—		113		113		.2
Over 100%		—		39		39		—
No LTV available		—		17		17		—
Loans purchased from GNMA mortgage pools (a)		—		7,248		7,248		8.8
Total	$	4,393	$	77,721	$	82,114		100.0	%

(a) Represents loans purchased and loans that could be purchased from Government National Mortgage Association (“GNMA”) mortgage pools under delinquent loan repurchase options whose payments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs.

Home Equity and Second Mortgages (Dollars in Millions)	Lines		Loans		Total		Percent of Total
Loan-to-Value / Combined Loan-to-Value
Less than or equal to 80%	$	9,557	$	868	$	10,425		95.0	%
Over 80% through 90%		203		214		417		3.8
Over 90% through 100%		22		17		39		.4
Over 100%		33		3		36		.3
No LTV/CLTV available		54		2		56		.5
Total	$	9,869	$	1,104	$	10,973		100.0	%

Home equity and second mortgages were $11.0 billion at June 30, 2022, compared with $10.4 billion at December 31, 2021, and included $3.0 billion of home equity lines in a first lien position and $8.0 billion of home equity and second mortgage loans and lines in a junior lien position. Loans and lines in a junior lien position at June 30, 2022, included approximately $2.7 billion of loans and lines for which the Company also serviced the related first lien loan, and approximately $5.3 billion where the Company did not service the related first lien loan. The Company was able to determine the status of the related first liens using information the Company has as the servicer of the first lien or information reported on customer credit bureau files. The Company also evaluates other indicators of credit risk for these junior lien loans and lines including delinquency, estimated average CLTV ratios and updated weighted-average credit scores in making its assessment of credit risk, related loss estimates and determining the allowance for credit losses.

The following table provides a summary of delinquency statistics and other credit quality indicators for the Company’s junior lien positions at June 30, 2022:

	Junior Liens Behind
(Dollars in Millions)	Company Owned or Serviced First Lien			Third Party First Lien			Total
Total	$	2,755		$	5,267		$	8,022
Percent 30—89 days past due		.25	%		.24	%		.24	%
Percent 90 days or more past due		.03	%		.03	%		.03	%
Weighted-average CLTV		56	%		54	%		55	%
Weighted-average credit score		785			786			785

See the “Analysis and Determination of the Allowance for Credit Losses” section for additional information on how the Company determines the allowance for credit losses for loans in a junior lien position.

Credit card and other retail loans are diversified across customer segments and geographies. Diversification in the credit card portfolio is achieved with broad customer relationship distribution through the Company’s and financial institution partners’ branches, retail and affinity partners, and digital channels.

The following table provides a summary of the Company’s credit card loan balances disaggregated based upon updated credit score at June 30, 2022:

	Percent of Total (a)
Credit score > 660		88	%
Credit score < 660		12
No credit score		—

(a) Credit score distribution excludes loans serviced by others.     

Loan Delinquencies Trends in delinquency ratios are an indicator, among other considerations, of credit risk within the Company’s loan portfolios. Accruing loans 90 days or more past due totaled $423 million at June 30, 2022, compared with $472 million at December 31, 2021. These balances exclude loans purchased and loans that could be purchased from GNMA mortgage pools under delinquent loan repurchase options whose repayments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. Accruing loans 90 days or more past due are not included in nonperforming assets and continue to accrue interest because they are adequately secured by collateral, are in the process of collection and are reasonably expected to result in repayment or restoration to current status, or are managed in homogeneous portfolios with specified charge-off timeframes adhering to regulatory guidelines. The ratio of accruing loans 90 days or more past due to total loans was 0.13 percent at June 30, 2022 compared with 0.15 percent at December 31, 2021.

12 U.S. Bancorp

 Table 5    Delinquent Loan Ratios as a Percent of Ending Loan Balances

90 days or more past due excluding nonperforming loans	June 30, 2022			December 31, 2021
Commercial
Commercial		.08	%		.05	%
Lease financing		—			—
Total commercial		.07			.04
Commercial Real Estate
Commercial mortgages		—			—
Construction and development		.04			.10
Total commercial real estate		.01			.03
Residential Mortgages (a)		.12			.24
Credit Card		.69			.73
Other Retail
Retail leasing		.03			.04
Home equity and second mortgages		.35			.35
Other		.05			.06
Total other retail		.10			.11
Total loans		.13	%		.15	%
90 days or more past due including nonperforming loans	June 30, 2022			December 31, 2021
Commercial		.19	%		.20	%
Commercial real estate		.53			.76
Residential mortgages (a)		.40			.53
Credit card		.69			.73
Other retail		.35			.35
Total loans		.35	%		.42	%

(a) Delinquent loan ratios exclude $1.7 billion at June 30, 2022, and $1.5 billion at December 31, 2021, of loans purchased and loans that could be purchased from GNMA mortgage pools under delinquent loan repurchase options whose repayments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. Including these loans, the ratio of residential mortgages 90 days or more past due including all nonperforming loans was 2.42 percent at June 30, 2022, and 2.43 percent at December 31, 2021.

The following table provides summary delinquency information for residential mortgages, credit card and other retail loans included in the consumer lending segment:

	Amount				As a Percent of Ending Loan Balances
(Dollars in Millions)	June 30, 2022		December 31, 2021		June 30, 2022			December 31, 2021
Residential Mortgages (a)
30-89 days	$	100	$	124		.12	%		.15	%
90 days or more		102		181		.12			.24
Nonperforming		223		226		.27			.30
Total	$	425	$	531		.52	%		.69	%
Credit Card
30-89 days	$	200	$	193		.84	%		.86	%
90 days or more		164		165		.69			.73
Nonperforming		—		—		—			—
Total	$	364	$	358		1.54	%		1.59	%
Other Retail
Retail Leasing
30-89 days	$	25	$	29		.39	%		.40	%
90 days or more		2		3		.03			.04
Nonperforming		9		10		.14			.14
Total	$	36	$	42		.55	%		.58	%
Home Equity and Second Mortgages
30-89 days	$	35	$	55		.32	%		.53	%
90 days or more		38		37		.35			.35
Nonperforming		118		116		1.08			1.11
Total	$	191	$	208		1.74	%		1.99	%
Other (b)
30-89 days	$	176	$	191		.41	%		.43	%
90 days or more		22		26		.05			.06
Nonperforming		21		24		.05			.05
Total	$	219	$	241		.51	%		.54	%

(a) Excludes $642 million of loans 30-89 days past due and $1.7 billion of loans 90 days or more past due at June 30, 2022, purchased and loans that could be purchased from GNMA mortgage pools under delinquent loan repurchase options that continue to accrue interest, compared with $791 million and $1.5 billion at December 31, 2021, respectively.

(b) Includes revolving credit, installment, automobile and student loans.

U.S. Bancorp 13

Restructured Loans In certain circumstances, the Company may modify the terms of a loan to maximize the collection of amounts due when a borrower is experiencing financial difficulties or is expected to experience difficulties in the near-term. In most cases the modification is either a concessionary reduction in interest rate, extension of the maturity date or reduction in the principal balance that would otherwise not be considered.

Troubled Debt Restructurings Concessionary modifications are classified as TDRs unless the modification results in only an insignificant delay in the payments to be received. TDRs accrue interest if the borrower complies with the revised terms and conditions and has demonstrated repayment performance at a level commensurate with the modified terms over several payment cycles, which is generally six months or greater. At June 30, 2022, performing TDRs were $3.2 billion, compared with $3.1 billion at December 31, 2021.

The Company continues to work with customers to modify loans for borrowers who are experiencing financial difficulties. Many of the Company’s TDRs are determined on a case-by-case basis in connection with ongoing loan collection processes. The modifications vary within each of the Company’s loan classes. Commercial lending segment TDRs generally include extensions of the maturity date and may be accompanied by an increase or decrease to the interest rate. The Company may also work with the borrower to make other changes to the loan to mitigate losses, such as obtaining additional collateral and/or guarantees to support the loan.

The Company has also implemented certain residential mortgage loan restructuring programs that may result in TDRs. The Company modifies residential mortgage loans under Federal Housing Administration, United States Department of Veterans Affairs, and its own internal programs. Under these programs, the Company offers qualifying homeowners the opportunity to permanently modify their loan and achieve more affordable monthly payments by providing loan concessions. These concessions may include adjustments to interest rates, conversion of adjustable rates to fixed rates, extensions of maturity dates or deferrals of payments, capitalization of accrued interest and/or outstanding advances, or in limited situations, partial forgiveness of loan principal. In most instances, participation in residential mortgage loan restructuring programs requires the customer to complete a short-term trial period. A permanent loan modification is contingent on the customer successfully completing the trial period arrangement, and the loan documents are not modified until that time. The Company reports loans in a trial period arrangement as TDRs and continues to report them as TDRs after the trial period.

Credit card and other retail loan TDRs are generally part of distinct restructuring programs providing customers modification solutions over a specified time period, generally up to 60 months.

In accordance with regulatory guidance, the Company considers secured consumer loans that have had debt discharged through bankruptcy where the borrower has not reaffirmed the debt to be TDRs. If the loan amount exceeds the collateral value, the loan is charged down to collateral value and the remaining amount is reported as nonperforming.

The following table provides a summary of TDRs by loan class, including the delinquency status for TDRs that continue to accrue interest and TDRs included in nonperforming assets:

			As a Percent of Performing TDRs
At June 30, 2022 (Dollars in Millions)	Performing TDRs		30-89 Days Past Due			90 Days or More Past Due			Nonperforming TDRs			Total TDRs
Commercial	$	141		4.7	%		2.4	%	$	63	(a)	$	204
Commercial real estate		110		.7			—			117	(b)		227
Residential mortgages		1,533		2.6			2.4			134			1,667	(d)
Credit card		252		11.7			5.9			—			252
Other retail		183		8.8			4.6			36	(c)		219	(e)
TDRs, excluding loans purchased from GNMA mortgage pools		2,219		4.2			2.9			350			2,569
Loans purchased from GNMA mortgage pools (g)		965		—			—			—			965	(f)
Total	$	3,184		2.9	%		2.0	%	$	350		$	3,534

(a) Primarily represents loans less than six months from the modification date that have not met the performance period required to return to accrual status (generally six months) and small business credit cards with a modified rate equal to 0 percent.

(b) Primarily represents loans less than six months from the modification date that have not met the performance period required to return to accrual status (generally six months).

(c) Primarily represents loans with a modified rate equal to 0 percent.

(d) Includes $214 million of residential mortgage loans to borrowers that have had debt discharged through bankruptcy and $20 million in trial period arrangements or previously placed in trial period arrangements but not successfully completed.

(e) Includes $60 million of other retail loans to borrowers that have had debt discharged through bankruptcy and $13 million in trial period arrangements or previously placed in trial period arrangements but not successfully completed.

(f) Includes $159 million of Federal Housing Administration and United States Department of Veterans Affairs residential mortgage loans to borrowers that have had debt discharged through bankruptcy and $126 million in trial period arrangements or previously placed in trial period arrangements but not successfully completed.

(g) Approximately 7.2 percent and 35.4 percent of the total TDR loans purchased from GNMA mortgage pools are 30-89 days past due and 90 days or more past due, respectively, but are not classified as delinquent as their repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs.

14 U.S. Bancorp

Short-term and Other Loan Modifications The Company makes short-term and other modifications that it does not consider to be TDRs, in limited circumstances, to assist borrowers experiencing temporary hardships, including previously offering payment relief to borrowers that experienced financial hardship resulting directly from the effects of the COVID-19 pandemic. Short-term consumer lending modification programs include payment reductions, deferrals of up to three past due payments, and the ability to return to current status if the borrower makes required payments. The Company may also make short-term modifications to commercial lending loans, with the most common modification being an extension of the maturity date of three months or less. Such extensions generally are used when the maturity date is imminent and the borrower is experiencing some level of financial stress, but the Company believes the borrower will pay all contractual amounts owed.

Nonperforming Assets The level of nonperforming assets represents another indicator of the potential for future credit losses. Nonperforming assets include nonaccrual loans, restructured loans not performing in accordance with modified terms and not accruing interest, restructured loans that have not met the performance period required to return to accrual status, other real estate owned (“OREO”) and other nonperforming assets owned by the Company. Interest payments collected from assets on nonaccrual status are generally applied against the principal balance and not recorded as income. However, interest income may be recognized for interest payments if the remaining carrying amount of the loan is believed to be collectible.

At June 30, 2022, total nonperforming assets were $770 million, compared to $878 million at December 31, 2021. The $108 million (12.3 percent) decrease in nonperforming assets was driven by a decrease in nonperforming commercial real estate and commercial loans. The ratio of total nonperforming assets to total loans and other real estate was 0.23 percent at June 30, 2022, compared with 0.28 percent at December 31, 2021.

OREO was $23 million at June 30, 2022, compared with $22 million at December 31, 2021, and was related to foreclosed properties that previously secured loan balances. These balances exclude foreclosed GNMA loans whose repayments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs.

U.S. Bancorp 15

 Table 6    Nonperforming Assets (a)

(Dollars in Millions)	June 30, 2022			December 31, 2021
Commercial
Commercial		$116			$139
Lease financing		32			35
Total commercial		148			174
Commercial Real Estate
Commercial mortgages		147			213
Construction and development		59			71
Total commercial real estate		206			284
Residential Mortgages (b)		223			226
Credit Card		—			—
Other Retail
Retail leasing		9			10
Home equity and second mortgages		118			116
Other		21			24
Total other retail		148			150
Total nonperforming loans (1)		725			834
Other Real Estate (c)		23			22
Other Assets		22			22
Total nonperforming assets		$770			$878
Accruing loans 90 days or more past due (b)		$423			$472
Period-end loans (2)		$332,369			$312,028
Nonperforming loans to total loans (1)/(2)		.22	%		.27	%
Nonperforming assets to total loans plus other real estate (c)		.23	%		.28	%

Changes in Nonperforming Assets

(Dollars in Millions)	Commercial and Commercial Real Estate			Residential Mortgages, Credit Card and Other Retail			Total
Balance December 31, 2021	$	461		$	417		$	878
Additions to nonperforming assets
New nonaccrual loans and foreclosed properties		168			123			291
Advances on loans		5			1			6
Total additions		173			124			297
Reductions in nonperforming assets
Paydowns, payoffs		(173	)		(36	)		(209	)
Net sales		(6	)		(12	)		(18	)
Return to performing status		(47	)		(76	)		(123	)
Charge-offs (d)		(51	)		(4	)		(55	)
Total reductions		(277	)		(128	)		(405	)
Net additions to (reductions in) nonperforming assets		(104	)		(4	)		(108	)
Balance June 30, 2022	$	357		$	413		$	770

(a) Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due.

(b) Excludes $1.7 billion at June 30, 2022, and $1.5 billion at December 31, 2021, of loans purchased and loans that could be purchased from GNMA mortgage pools under delinquent loan repurchase options that are 90 days or more past due that continue to accrue interest, as their repayments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs.

(c) Foreclosed GNMA loans of $40 million at June 30, 2022, and $22 million at December 31, 2021, continue to accrue interest and are recorded as other assets and excluded from nonperforming assets because they are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs.

(d) Charge-offs exclude actions for certain card products and loan sales that were not classified as nonperforming at the time the charge-off occurred.

16 U.S. Bancorp

 Table 7    Net Charge-offs as a Percent of Average Loans Outstanding

	Three Months Ended June 30
	2022								2021
	Average								Average
	Loan		Net						Loan		Net
(Dollars in Millions)	Balance		Charge-offs			Percent			Balance		Charge-offs			Percent
Commercial
Commercial	$	115,758	$	28			.10	%	$	97,713	$	26			.11	%
Lease financing		4,899		2			.16			5,261		1			.08
Total commercial		120,657		30			.10			102,974		27			.11
Commercial real estate
Commercial mortgages		29,676		(2	)		(.03	)		27,721		—			—
Construction		9,841		8			.33			10,843		—			—
Total commercial real estate		39,517		6			.06			38,564		—			—
Residential mortgages		80,228		(9	)		(.04	)		73,351		(10	)		(.05	)
Credit card		22,748		118			2.08			21,116		148			2.81
Other retail
Retail leasing		6,708		—			—			7,873		(1	)		(.05	)
Home equity and second mortgages		10,726		(3	)		(.11	)		11,368		(3	)		(.11	)
Other		43,603		19			.17			39,038		19			.20
Total other retail		61,037		16			.11			58,279		15			.10
Total loans	$	324,187	$	161			.20	%	$	294,284	$	180			.25	%

	Six Months Ended June 30
	2022								2021
	Average								Average
	Loan		Net						Loan		Net
(Dollars in Millions)	Balance		Charge-offs			Percent			Balance		Charge-offs			Percent
Commercial
Commercial	$	111,810	$	54			.10	%	$	97,237	$	78			.16	%
Lease financing		4,951		8			.33			5,298		5			.19
Total commercial		116,761		62			.11			102,535		83			.16
Commercial real estate
Commercial mortgages		29,253		(2	)		(.01	)		27,844		(12	)		(.09	)
Construction		10,049		3			.06			10,831		5			.09
Total commercial real estate		39,302		1			.01			38,675		(7	)		(.04	)
Residential mortgages		78,847		(15	)		(.04	)		74,271		(15	)		(.04	)
Credit card		22,297		230			2.08			21,130		292			2.79
Other retail
Retail leasing		6,908		1			.03			7,924		—			—
Home equity and second mortgages		10,561		(5	)		(.10	)		11,713		(5	)		(.09	)
Other		43,932		49			.22			37,890		55			.29
Total other retail		61,401		45			.15			57,527		50			.18
Total loans	$	318,608	$	323			.20	%	$	294,138	$	403			.28	%

Analysis of Loan Net Charge-Offs Total loan net charge-offs were $161 million for the second quarter and $323 million for the first six months of 2022, compared with $180 million and $403 million, respectively, for the same periods of 2021. The year-over-year decreases in net charge-offs were primarily driven by lower credit card net charge-offs. The ratio of total loan net charge-offs to average loans outstanding on an annualized basis for both the second quarter and first six months of 2022 was 0.20 percent, compared with 0.25 percent and 0.28 percent, respectively, for the same periods of 2021.

Analysis and Determination of the Allowance for Credit Losses The allowance for credit losses is established for current expected credit losses on the Company’s loan and lease portfolio, including unfunded credit commitments. The allowance considers expected losses for the remaining lives of the applicable assets, inclusive of expected recoveries. The allowance for credit losses is increased through provisions charged to earnings and reduced by net charge-offs.

Management evaluates the appropriateness of the allowance for credit losses on a quarterly basis. Multiple economic scenarios are considered over a three-year reasonable and supportable forecast period, which includes increasing consideration of historical loss experience over years two and three. These economic scenarios are constructed with interrelated projections of multiple economic variables, and loss estimates are produced that consider the historical correlation of those economic variables with credit losses. After the forecast period, the Company fully reverts to long-term historical

U.S. Bancorp 17

loss experience, adjusted for prepayments and characteristics of the current loan and lease portfolio, to estimate losses over the remaining life of the portfolio. The economic scenarios are updated at least quarterly and are designed to provide a range of reasonable estimates from better to worse than current expectations. Scenarios are weighted based on the Company’s expectation of economic conditions for the foreseeable future and reflect significant judgment and consideration of economic forecast uncertainty. Final loss estimates also consider factors affecting credit losses not reflected in the scenarios, due to the unique aspects of current conditions and expectations. These factors may include, but are not limited to, loan servicing practices, regulatory guidance, and/or fiscal and monetary policy actions.

Because business processes and credit risks associated with unfunded credit commitments are essentially the same as for loans, the Company utilizes similar processes to estimate its liability for unfunded credit commitments, which is included in other liabilities in the Consolidated Balance Sheet. Both the allowance for loan losses and the liability for unfunded credit commitments are included in the Company’s analysis of credit losses and reported reserve ratios.

The allowance recorded for credit losses utilizes forward-looking expected loss models to consider a variety of factors affecting lifetime credit losses. These factors include, but are not limited to, macroeconomic variables such as unemployment rates, real estate prices, gross domestic product levels and corporate bond spreads, as well as loan and borrower characteristics, such as internal risk ratings on commercial loans and consumer credit scores, delinquency status, collateral type and available valuation information, consideration of end-of-term losses on lease residuals, and the remaining term of the loan, adjusted for expected prepayments. For each loan portfolio, model estimates are adjusted as necessary to consider any relevant changes in portfolio composition, lending policies, underwriting standards, risk management practices, economic conditions or other factors that may affect the accuracy of the model. Expected credit loss estimates also include consideration of expected cash recoveries on loans previously charged-off or expected recoveries on collateral-dependent loans where recovery is expected through sale of the collateral. Where loans do not exhibit similar risk characteristics, an individual analysis is performed to consider expected credit losses.

The allowance recorded for individually evaluated loans greater than $5 million in the commercial lending segment is based on an analysis utilizing expected cash flows discounted using the original effective interest rate, the observable market price of the loan, or the fair value of the collateral, less selling costs, for collateral-dependent loans as appropriate. For commercial TDRs individually evaluated for impairment, attributes of the borrower are the primary factors in determining the allowance for credit losses. For smaller commercial loans collectively evaluated for impairment, historical loss experience is also incorporated into the allowance methodology applied to this category of loans.

The allowance recorded for TDR loans in the consumer lending segment is determined on a homogenous pool basis utilizing expected cash flows discounted using the original effective interest rate of the pool. The expected cash flows on TDR loans consider subsequent payment defaults since modification, the borrower’s ability to pay under the restructured terms, and the timing and amount of payments. The allowance for collateral-dependent loans in the consumer lending segment is determined based on the current fair value of the collateral less costs to sell.

When evaluating the appropriateness of the allowance for credit losses for any loans and lines in a junior lien position, the Company considers the delinquency and modification status of the first lien. At June 30, 2022, the Company serviced the first lien on 34 percent of the home equity loans and lines in a junior lien position. The Company also considers the status of first lien mortgage accounts reported on customer credit bureau files when the first lien is not serviced by the Company. Regardless of whether the Company services the first lien, an assessment is made of economic conditions, problem loans, recent loss experience and other factors in determining the allowance for credit losses. Based on the available information, the Company estimated $193 million or 1.8 percent of its total home equity portfolio at June 30, 2022, represented non-delinquent junior liens where the first lien was delinquent or modified.

The Company considers historical loss experience on the loans and lines in a junior lien position to establish loss estimates for junior lien loans and lines the Company services that are current, but the first lien is delinquent or modified. The historical long-term average loss experience related to junior liens has been relatively limited (less than 1 percent of the total portfolio annually), and estimates are adjusted to consider current collateral support and portfolio risk characteristics. These include updated credit scores and collateral estimates obtained on the Company’s home equity portfolio each quarter. In its evaluation of the allowance for credit losses, the Company also considers the increased risk of loss associated with home equity lines that are contractually scheduled to convert from a revolving status to a fully amortizing payment.

18 U.S. Bancorp

When a loan portfolio is purchased, the acquired loans are divided into those considered purchased with more than insignificant credit deterioration (“PCD”) and those not considered PCD. An allowance is established for each population and considers product mix, risk characteristics of the portfolio, bankruptcy experience, delinquency status and refreshed LTV ratios when possible. The allowance established for purchased loans not considered PCD is recognized through provision expense upon acquisition, whereas the allowance established for loans considered PCD at acquisition is offset by an increase in the basis of the acquired loans. Any subsequent increases and decreases in the allowance related to purchased loans, regardless of PCD status, are recognized through provision expense, with charge-offs charged to the allowance. The Company did not have a material amount of PCD loans included in its loan portfolio at June 30, 2022.

The Company’s methodology for determining the appropriate allowance for credit losses also considers the imprecision inherent in the methodologies used and allocated to the various loan portfolios. As a result, amounts determined under the methodologies described above are adjusted by management to consider the potential impact of other qualitative factors not captured in quantitative model adjustments which include, but are not limited to, the following: model imprecision, imprecision in economic scenario assumptions, and emerging risks related to either changes in the economic environment that are affecting specific portfolios, or changes in portfolio concentrations over time that may affect model performance. The consideration of these items results in adjustments to allowance amounts included in the Company’s allowance for credit losses for each loan portfolio.

Although the Company determined the amount of each element of the allowance separately and considers this process to be an important credit management tool, the entire allowance for credit losses is available for the entire loan portfolio. The actual amount of losses can vary significantly from the estimated amounts.

At June 30, 2022, the allowance for credit losses was $6.3 billion (1.88 percent of period-end loans), compared with an allowance of $6.2 billion (1.97 percent of period-end loans) at December 31, 2021. The ratio of the allowance for credit losses to nonperforming loans was 863 percent at June 30, 2022, compared with 738 percent at December 31, 2021. The ratio of the allowance for credit losses to annualized loan net charge-offs was 969 percent at June 30, 2022, compared with 902 percent of full year 2021 net charge-offs at December 31, 2021.

The increase in the allowance for credit losses of $100 million (1.6 percent) at June 30, 2022, compared with December 31, 2021, was driven by strong loan growth and increased economic uncertainty, partially offset by stabilizing credit quality. Economic uncertainty and recession risk has been increasing due to ongoing supply chain challenges, rising inflationary concerns, market volatility, rising oil prices resulting from the Russia-Ukraine conflict and, to a lesser extent, additional COVID-19 virus variants. In addition to these factors, expected loss estimates consider various factors including customer specific information impacting changes in risk ratings, projected delinquencies, potential effects of inflationary pressures and the impact of rising interest rates on borrowers’ liquidity and ability to repay.

Economic conditions considered in estimating the allowance for credit losses at June 30, 2022 included changes in projected gross domestic product and unemployment levels. These factors are evaluated through a combination of quantitative calculations using economic scenarios and qualitative assessments that consider the high degree of economic uncertainty in the current environment.

The following table summarizes the baseline forecast for key economic variables the Company used in its estimate of the allowance for credit losses at June 30, 2022 and December 31, 2021:

	June 30, 2022			December 31, 2021
United States unemployment rate for the three months ending (a)
June 30, 2022		3.6	%		3.6	%
September 30, 2022		3.4			3.5
December 31, 2022		3.3			3.5
United States real gross domestic product for the three months ending (b)
June 30, 2022		2.5	%		4.4	%
September 30, 2022		2.8			4.5
December 31, 2022		1.8			3.4

(a) Reflects quarterly average of forecasted reported United States unemployment rate.

(b) Reflects year-over-year growth rates.

The allowance for credit losses related to commercial lending segment loans decreased $103 million during the first six months of 2022, reflecting select commercial portfolios continuing to recover from the effects of the COVID-19 pandemic, partially offset by the impacts of loan growth and rising economic uncertainty.

The allowance for credit losses related to consumer lending segment loans increased $203 million during the first six months of 2022, mainly due to loan growth and rising economic uncertainty.

U.S. Bancorp 19

 Table 8    Summary of Allowance for Credit Losses

	Three Months Ended						Six Months Ended
	June 30						June 30
(Dollars in Millions)	2022			2021			2022			2021
Balance at beginning of period	$	6,105		$	6,960		$	6,155		$	8,010
Charge-Offs
Commercial
Commercial		48			54			95			134
Lease financing		5			4			13			10
Total commercial		53			58			108			144
Commercial real estate
Commercial mortgages		1			3			1			8
Construction and development		8			1			9			6
Total commercial real estate		9			4			10			14
Residential mortgages		2			5			7			10
Credit card		162			192			320			382
Other retail
Retail leasing		4			4			9			15
Home equity and second mortgages		2			2			5			6
Other		44			49			97			117
Total other retail		50			55			111			138
Total charge-offs		276			314			556			688
Recoveries
Commercial
Commercial		20			28			41			56
Lease financing		3			3			5			5
Total commercial		23			31			46			61
Commercial real estate
Commercial mortgages		3			3			3			20
Construction and development		—			1			6			1
Total commercial real estate		3			4			9			21
Residential mortgages		11			15			22			25
Credit card		44			44			90			90
Other retail
Retail leasing		4			5			8			15
Home equity and second mortgages		5			5			10			11
Other		25			30			48			62
Total other retail		34			40			66			88
Total recoveries		115			134			233			285
Net Charge-Offs
Commercial
Commercial		28			26			54			78
Lease financing		2			1			8			5
Total commercial		30			27			62			83
Commercial real estate
Commercial mortgages		(2	)		—			(2	)		(12	)
Construction and development		8			—			3			5
Total commercial real estate		6			—			1			(7	)
Residential mortgages		(9	)		(10	)		(15	)		(15	)
Credit card		118			148			230			292
Other retail
Retail leasing		—			(1	)		1			—
Home equity and second mortgages		(3	)		(3	)		(5	)		(5	)
Other		19			19			49			55
Total other retail		16			15			45			50
Total net charge-offs		161			180			323			403
Provision for credit losses		311			(170	)		423			(997	)
Balance at end of period	$	6,255		$	6,610		$	6,255		$	6,610
Components
Allowance for loan losses	$	5,832		$	6,026
Liability for unfunded credit commitments		423			584
Total allowance for credit losses (1)	$	6,255		$	6,610
Period-end loans (2)	$	332,369		$	296,912
Nonperforming loans (3)		725			1,018
Allowance for Credit Losses as a Percentage of
Period-end loans (1)/(2)		1.88	%		2.23	%
Nonperforming loans (1)/(3)		863			649
Nonperforming and accruing loans 90 days or more past due		545			474
Nonperforming assets		812			624
Annualized net charge-offs		969			916

20 U.S. Bancorp

Residual Value Risk Management The Company manages its risk to changes in the residual value of leased vehicles, office and business equipment, and other assets through disciplined residual valuation at the inception of a lease, diversification of its leased assets, regular residual asset valuation reviews and monitoring of residual value gains or losses upon the disposition of assets. As of June 30, 2022, no significant change in the amount of residual values or concentration of the portfolios had occurred since December 31, 2021. Refer to “Management’s Discussion and Analysis — Residual Value Risk Management” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, for further discussion on residual value risk management.

Operational Risk Management The Company operates in many different businesses in diverse markets and relies on the ability of its employees and systems to process a high number of transactions. Operational risk is inherent in all business activities, and the management of this risk is important to the achievement of the Company’s objectives. Business lines have direct and primary responsibility and accountability for identifying, controlling, and monitoring operational risks embedded in their business activities, including those additional or increased risks created by economic and financial disruptions. The Company maintains a system of controls with the objective of providing proper transaction authorization and execution, proper system operations, proper oversight of third parties with whom it does business, safeguarding of assets from misuse or theft, and ensuring the reliability and security of financial and other data. Refer to “Management’s Discussion and Analysis — Operational Risk Management” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, for further discussion on operational risk management.

Compliance Risk Management The Company may suffer legal or regulatory sanctions, material financial loss, or damage to its reputation through failure to comply with laws, regulations, rules, standards of good practice, and codes of conduct, including those related to compliance with Bank Secrecy Act/anti-money laundering requirements, sanctions compliance requirements as administered by the Office of Foreign Assets Control, consumer protection and other requirements. The Company has controls and processes in place for the assessment, identification, monitoring, management and reporting of compliance risks and issues including those created or increased by economic and financial disruptions. Refer to “Management’s Discussion and Analysis — Compliance Risk Management” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, for further discussion on compliance risk management.

Interest Rate Risk Management In the banking industry, changes in interest rates are a significant risk that can impact earnings and the safety and soundness of an entity. The Company manages its exposure to changes in interest rates through asset and liability management activities within guidelines established by its Asset Liability Management Committee (“ALCO”) and approved by the Board of Directors. The ALCO has the responsibility for approving and overseeing compliance with the ALCO management policies, including interest rate risk exposure. One way the Company measures and analyzes its interest rate risk is through net interest income simulation analysis.

Simulation analysis incorporates substantially all of the Company’s assets and liabilities and off-balance sheet instruments, together with forecasted changes in the balance sheet and assumptions that reflect the current interest rate environment. Through this simulation, management estimates the impact on net interest income of various interest rate changes that differ in the direction, amount and speed of change over time, as well as the shape of the yield curve. This simulation includes assumptions about how the balance sheet is likely to be affected by changes in loan and deposit growth. Assumptions are made to project interest rates for new loans and deposits based on historical analysis, management’s outlook and re-pricing strategies. These assumptions are reviewed and validated on a periodic basis with sensitivity analysis being provided for key variables of the simulation. The results are reviewed monthly by the ALCO and are used to guide asset/liability management strategies.

The Company manages its interest rate risk position by holding assets with desired interest rate risk characteristics on its balance sheet, implementing certain pricing strategies for loans and deposits and selecting derivatives and various funding and investment portfolio strategies.

Table 9 summarizes the projected impact to net interest income over the next 12 months of various potential interest rate changes. The sensitivity of the projected impact to net interest income over the next 12 months is dependent on balance sheet growth, product mix, deposit behavior, pricing and funding decisions. While the Company utilizes models and assumptions based on historical information and expected behaviors, actual outcomes could vary significantly. Net interest income sensitivities reflect the impact of current market expectations for interest rates, driving an increase in baseline projected net interest income. As market expectations are reflected in projected results, incremental interest rate sensitivity declines on a percentage basis.

U.S. Bancorp 21

 Table 9    Sensitivity of Net Interest Income

	June 30, 2022											December 31, 2021
	Down 50 bps Immediate			Up 50 bps Immediate			Down 200 bps Gradual		Up 200 bps Gradual			Down 50 bps Immediate			Up 50 bps Immediate			Down 200 bps Gradual		Up 200 bps Gradual
Net interest income		(1.45	)%		1.17	%		*		1.54	%		(3.77	)%		3.09	%		*		5.39	%

* Given the level of interest rates, downward rate scenario is not computed.

Use of Derivatives to Manage Interest Rate and Other Risks To manage the sensitivity of earnings and capital to interest rate, prepayment, credit, price and foreign currency fluctuations (asset and liability management positions), the Company enters into derivative transactions. The Company uses derivatives for asset and liability management purposes primarily in the following ways:

• To convert fixed-rate debt and available-for-sale investment securities from fixed-rate payments to floating-rate payments;

• To convert floating-rate loans and debt from floating-rate payments to fixed-rate payments;

• To mitigate changes in value of the Company’s unfunded mortgage loan commitments, funded MLHFS and MSRs;

• To mitigate remeasurement volatility of foreign currency denominated balances; and

• To mitigate the volatility of the Company’s net investment in foreign operations driven by fluctuations in foreign currency exchange rates.

In addition, the Company enters into interest rate and foreign exchange derivative contracts to support the business requirements of its customers (customer-related positions). The Company minimizes the market and liquidity risks of customer-related positions by either entering into similar offsetting positions with broker-dealers, or on a portfolio basis by entering into other derivative or non-derivative financial instruments that partially or fully offset the exposure from these customer-related positions. The Company may enter into derivative contracts that are either exchange-traded, centrally cleared through clearinghouses or over-the-counter. The Company does not utilize derivatives for speculative purposes.

The Company does not designate all of the derivatives that it enters into for risk management purposes as accounting hedges because of the inefficiency of applying the accounting requirements and may instead elect fair value accounting for the related hedged items. In particular, the Company enters into interest rate swaps, swaptions, forward commitments to buy to-be-announced securities (“TBAs”), U.S. Treasury and Eurodollar futures and options on U.S. Treasury futures to mitigate fluctuations in the value of its MSRs, but does not designate those derivatives as accounting hedges.

Additionally, the Company uses forward commitments to sell TBAs and other commitments to sell residential mortgage loans at specified prices to economically hedge the interest rate risk in its residential mortgage loan production activities. At June 30, 2022, the Company had $5.1 billion of forward commitments to sell, hedging $2.1 billion of MLHFS and $4.0 billion of unfunded mortgage loan commitments. The forward commitments to sell and the unfunded mortgage loan commitments on loans intended to be sold are considered derivatives under the accounting guidance related to accounting for derivative instruments and hedging activities. The Company has elected the fair value option for the MLHFS.

Derivatives are subject to credit risk associated with counterparties to the contracts. Credit risk associated with derivatives is measured by the Company based on the probability of counterparty default. The Company manages the credit risk of its derivative positions by diversifying its positions among various counterparties, by entering into master netting arrangements, and, where possible, by requiring collateral arrangements. The Company may also transfer counterparty credit risk related to interest rate swaps to third parties through the use of risk participation agreements. In addition, certain interest rate swaps, interest rate forwards and credit contracts are required to be centrally cleared through clearinghouses to further mitigate counterparty credit risk.

For additional information on derivatives and hedging activities, refer to Notes 13 and 14 in the Notes to Consolidated Financial Statements.

LIBOR Transition In July 2017, the United Kingdom’s Financial Conduct Authority (the “FCA”) announced that it would no longer require banks to submit rates for the London InterBank Offered Rate (“LIBOR”) after 2021. In March 2021, the FCA and the administrator of LIBOR announced that, with respect to the most commonly used tenors of United States Dollar LIBOR, LIBOR will no longer be published on a representative basis after June 30, 2023. The publication of all other tenors of United States Dollar LIBOR ceased to be provided or ceased to be representative after December 31, 2021. The Company holds financial instruments impacted by the discontinuance of LIBOR, including certain loans, investment securities, derivatives,

22 U.S. Bancorp

borrowings and other financial instruments that use LIBOR as the benchmark rate. The Company also provides various services to customers in its capacities as trustee and servicer, which involve financial instruments that will be similarly impacted by the discontinuance of LIBOR.

The Company has transitioned financial instruments associated to LIBOR currencies and tenors that ceased or became nonrepresentative on December 31, 2021 to alternative reference rates, with limited exceptions. The Company also anticipates that additional financial instruments associated to the remaining United States Dollar LIBOR tenors will require transition to a new reference rate by June 30, 2023. The Company is currently assessing the applicability and scope of the Adjustable Interest Rate (LIBOR) Act (the “LIBOR Act”), which was enacted on March 15, 2022. The LIBOR Act establishes a process for replacing LIBOR on existing LIBOR contracts that do not provide for the use of a clearly defined or practicable replacement benchmark rate by providing that a benchmark replacement identified by the Federal Reserve Board that is based on the Secured Overnight Financing Rate (“SOFR”) will replace LIBOR as the benchmark for such contracts. The final implementation of the LIBOR Act currently remains uncertain, as the Federal Reserve has 180 days after its enactment to issue any regulations that are necessary for its administration.

In order to facilitate the transition process, the Company has instituted a LIBOR Transition Office and commenced an enterprise-wide project to identify, assess, monitor and mitigate risks associated with the expected discontinuance or unavailability of LIBOR, actively engage with industry working groups and regulators, achieve operational readiness for the use of alternative reference rates and engage impacted customers to remediate and transition impacted instruments. The Company has also invested in updating its systems, models, procedures and internal infrastructure as part of the transition program. Additionally, in alignment with guidance from United States banking agencies and the FCA, the Company has ceased the use of LIBOR as a reference rate in new contracts, with limited exceptions, and continues to increase the usage of alternative reference rates such as SOFR. The Company has also adopted industry best practice guidelines for fallback language for new transactions, converted its cleared interest rate swaps discounting to SOFR discounting, and distributed communications related to the transition to certain impacted parties, both inside and outside the Company. Refer to “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, for further discussion on potential risks that could adversely affect the Company’s financial results as a result of the LIBOR transition.

Market Risk Management In addition to interest rate risk, the Company is exposed to other forms of market risk, principally related to trading activities which support customers’ strategies to manage their own foreign currency, interest rate risk and funding activities. For purposes of its internal capital adequacy assessment process, the Company considers risk arising from its trading activities, as well as the remeasurement volatility of foreign currency denominated balances included on its Consolidated Balance Sheet (collectively, “Covered Positions”), employing methodologies consistent with the requirements of regulatory rules for market risk. The Company’s Market Risk Committee (“MRC”), within the framework of the ALCO, oversees market risk management. The MRC monitors and reviews the Company’s Covered Positions and establishes policies for market risk management, including exposure limits for each portfolio. The Company uses a VaR approach to measure general market risk. Theoretically, VaR represents the statistical risk of loss the Company has to adverse market movements over a one-day time horizon. The Company uses the Historical Simulation method to calculate VaR for its Covered Positions measured at the ninety-ninth percentile using a one-year look-back period for distributions derived from past market data. The market factors used in the calculations include those pertinent to market risks inherent in the underlying trading portfolios, principally those that affect the Company’s corporate bond trading business, foreign currency transaction business, client derivatives business, loan trading business and municipal securities business, as well as those inherent in the Company’s foreign denominated balances and the derivatives used to mitigate the related measurement volatility. On average, the Company expects the one-day VaR to be exceeded by actual losses two to three times per year related to these positions. The Company monitors the accuracy of internal VaR models and modeling processes by back-testing model performance, regularly updating the historical data used by the VaR models and regular model validations to assess the accuracy of the models’ input, processing, and reporting components. All models are required to be independently reviewed and approved prior to being placed in use. If the Company were to experience market losses in excess of the estimated VaR more often than expected, the VaR models and associated assumptions would be analyzed and adjusted.

U.S. Bancorp 23

The average, high, low and period-end one-day VaR amounts for the Company’s Covered Positions were as follows:

Six Months Ended June 30 (Dollars in Millions)	2022		2021
Average	$	1	$	2
High		2		4
Low		1		1
Period-end		2		2

The Company did not experience any actual losses for its combined Covered Positions that exceeded VaR during the six months ended June 30, 2022 and 2021. The Company stress tests its market risk measurements to provide management with perspectives on market events that may not be captured by its VaR models, including worst case historical market movement combinations that have not necessarily occurred on the same date.

The Company calculates Stressed VaR using the same underlying methodology and model as VaR, except that a historical continuous one-year look-back period is utilized that reflects a period of significant financial stress appropriate to the Company’s Covered Positions. The period selected by the Company includes the significant market volatility of the last four months of 2008.

The average, high, low and period-end one-day Stressed VaR amounts for the Company’s Covered Positions were as follows:

Six Months Ended June 30 (Dollars in Millions)	2022		2021
Average	$	5	$	7
High		9		9
Low		3		5
Period-end		9		8

Valuations of positions in client derivatives and foreign currency activities are based on discounted cash flow or other valuation techniques using market-based assumptions. These valuations are compared to third party quotes or other market prices to determine if there are significant variances. Significant variances are approved by senior management in the Company’s corporate functions. Valuation of positions in the corporate bond trading, loan trading and municipal securities businesses are based on trader marks. These trader marks are evaluated against third-party prices, with significant variances approved by senior management in the Company’s corporate functions.

The Company also measures the market risk of its hedging activities related to residential MLHFS and MSRs using the Historical Simulation method. The VaRs are measured at the ninety-ninth percentile and employ factors pertinent to the market risks inherent in the valuation of the assets and hedges. A one-year look-back period is used to obtain past market data for the models.

The average, high and low VaR amounts for the residential MLHFS and related hedges and the MSRs and related hedges were as follows:

Six Months Ended June 30 (Dollars in Millions)	2022		2021
Residential Mortgage Loans Held For Sale and Related Hedges
Average	$	2	$	10
High		5		19
Low		1		5
Mortgage Servicing Rights and Related Hedges
Average	$	7	$	4
High		13		11
Low		3		1

Liquidity Risk Management The Company’s liquidity risk management process is designed to identify, measure, and manage the Company’s funding and liquidity risk to meet its daily funding needs and to address expected and unexpected changes in its funding requirements. The Company engages in various activities to manage its liquidity risk. These activities include diversifying its funding sources, stress testing, and holding readily-marketable assets which can be used as a source of liquidity if needed. In addition, the Company’s profitable operations, sound credit quality and strong capital position have enabled it to develop a large and reliable base of core deposit funding within its market areas and in domestic and global capital markets.

The Company’s Board of Directors approves the Company’s liquidity policy. The Risk Management Committee of the Company’s Board of Directors oversees the Company’s liquidity risk management process and approves a contingency funding plan. The ALCO reviews the Company’s liquidity policy and limits, and regularly assesses the Company’s ability to meet funding requirements arising from adverse company-specific or market events.

The Company regularly projects its funding needs under various stress scenarios and maintains a contingency funding plan consistent with the Company’s access to diversified sources of contingent funding. The Company maintains a substantial level of total available liquidity in the form of on-balance sheet and off-balance sheet funding sources. These liquidity sources include cash at the Federal Reserve Bank and certain European central banks, unencumbered liquid assets, and capacity to borrow from the FHLB and at the Federal Reserve Bank’s Discount Window. At June 30, 2022, the fair value of unencumbered investment securities totaled $137.5 billion, compared with $144.0 billion at December 31, 2021. Refer to Note 4 of the Notes to Consolidated Financial Statements and “Balance Sheet Analysis” for further information on investment securities maturities and trends. Asset liquidity is further enhanced by the Company’s practice of pledging loans to access secured borrowing facilities through the FHLB and

24 U.S. Bancorp

Federal Reserve Bank. At June 30, 2022, the Company could have borrowed a total of an additional $95.5 billion from the FHLB and Federal Reserve Bank based on collateral available for additional borrowings.

The Company’s diversified deposit base provides a sizeable source of relatively stable and low-cost funding, while reducing the Company’s reliance on the wholesale markets. Total deposits were $467.1 billion at June 30, 2022, compared with $456.1 billion at December 31, 2021. Refer to “Balance Sheet Analysis” for further information on the Company’s deposits.

Additional funding is provided by long-term debt and short-term borrowings. Long-term debt was $29.4 billion at June 30, 2022, and is an important funding source because of its multi-year borrowing structure. Short-term borrowings were $25.0 billion at June 30, 2022, and supplement the Company’s other funding sources. Refer to “Balance Sheet Analysis” for further information on the Company’s long-term debt and short-term borrowings.

In addition to assessing liquidity risk on a consolidated basis, the Company monitors the parent company’s liquidity. The Company establishes limits for the minimal number of months into the future where the parent company can meet existing and forecasted obligations with cash and securities held that can be readily monetized. The Company measures and manages this limit in both normal and adverse conditions. The Company maintains sufficient funding to meet expected capital and debt service obligations for 24 months without the support of dividends from subsidiaries and assuming access to the wholesale markets is maintained. The Company maintains sufficient liquidity to meet its capital and debt service obligations for 12 months under adverse conditions without the support of dividends from subsidiaries or access to the wholesale markets. The parent company is currently well in excess of required liquidity minimums.

At June 30, 2022, parent company long-term debt outstanding was $18.4 billion, compared with $18.9 billion at December 31, 2021. The decrease was primarily due to $1.3 billion of subordinated note and $1.0 billion of medium-term note repayments, partially offset by $2.1 billion of medium-term note issuances. As of June 30, 2022, there was no parent company debt scheduled to mature in the remainder of 2022.

The Company is subject to a regulatory Liquidity Coverage Ratio (“LCR”) requirement which requires banks to maintain an adequate level of unencumbered high quality liquid assets to meet estimated liquidity needs over a 30-day stressed period. At June 30, 2022, the Company was compliant with this requirement.

The Company is also subject to a regulatory Net Stable Funding Ratio (“NSFR”) requirement which requires banks to maintain a minimum level of stable funding based on the liquidity characteristics of their assets, commitments, and derivative exposures over a one-year time horizon. At June 30, 2022, the Company was compliant with this requirement.

Refer to “Management’s Discussion and Analysis — Liquidity Risk Management” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, for further discussion on liquidity risk management.

European Exposures The Company provides merchant processing and corporate trust services in Europe either directly or through banking affiliations in Europe. Revenue generated from sources in Europe represented approximately 2 percent of the Company’s total net revenue for both the three and six months ended June 30, 2022. Operating cash for these businesses is deposited on a short-term basis typically with certain European central banks. For deposits placed at other European banks, exposure is mitigated by the Company placing deposits at multiple banks and managing the amounts on deposit at any bank based on institution-specific deposit limits. At June 30, 2022, the Company had an aggregate amount on deposit with European banks of approximately $7.3 billion, predominately with the Central Bank of Ireland and Bank of England.

In addition, the Company provides financing to domestic multinational corporations that generate revenue from customers in European countries, transacts with various European banks as counterparties to certain derivative-related activities, and through a subsidiary, manages money market funds that hold certain investments in European sovereign debt. Any deterioration in economic conditions in Europe, including the impacts resulting from the Russia-Ukraine conflict, is not expected to have a significant effect on the Company related to these activities.

Commitments, Contingent Liabilities and Other Contractual Obligations The Company participates in many different contractual arrangements which may or may not be recorded on its balance sheet, with unrelated or consolidated entities, under which the Company has an obligation to pay certain amounts, provide credit or liquidity enhancements or provide market risk support. These arrangements include commitments to extend credit, letters of credit and various forms of guarantees. Refer to Note 16 of the Notes to Consolidated Financial Statements for further information on guarantees and contingent liabilities. These arrangements also include any obligation related to a variable interest held in an unconsolidated entity that provides financing, liquidity, credit enhancement or market risk support. Refer to Note 6 of the Notes to Consolidated Financial Statements for further information related to the Company’s interests in variable interest entities.

U.S. Bancorp 25

 Table 10    Regulatory Capital Ratios

(Dollars in Millions)	June 30, 2022			December 31, 2021
Basel III standardized approach:
Common equity tier 1 capital	$	42,944		$	41,701
Tier 1 capital		50,195			48,516
Total risk-based capital		58,307			56,250
Risk-weighted assets		441,804			418,571
Common equity tier 1 capital as a percent of risk-weighted assets		9.7	%		10.0	%
Tier 1 capital as a percent of risk-weighted assets		11.4			11.6
Total risk-based capital as a percent of risk-weighted assets		13.2			13.4
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio)		8.6			8.6
Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure (total leverage exposure ratio)		7.1			6.9

Capital Management The Company is committed to managing capital to maintain strong protection for depositors and creditors and for maximum shareholder benefit. The Company also manages its capital to exceed regulatory capital requirements for banking organizations. The regulatory capital requirements effective for the Company follow Basel III, with the Company being subject to calculating its capital adequacy as a percentage of risk-weighted assets under the standardized approach. Beginning in 2022, the Company began to phase into its regulatory capital requirements the cumulative deferred impact of its 2020 adoption of the accounting guidance related to the impairment of financial instruments based on the current expected credit losses (“CECL”) methodology plus 25 percent of its quarterly credit reserve increases over the past two years. This cumulative deferred impact will be phased into the Company’s regulatory capital over the next three years, culminating with a fully phased in regulatory capital calculation beginning in 2025. Table 10 provides a summary of statutory regulatory capital ratios in effect for the Company at June 30, 2022 and December 31, 2021. All regulatory ratios exceeded regulatory “well-capitalized” requirements.

The Company believes certain other capital ratios are useful in evaluating its capital adequacy. The Company’s tangible common equity, as a percent of tangible assets and as a percent of risk-weighted assets determined in accordance with transitional regulatory capital requirements related to the CECL methodology under the standardized approach, was 5.5 percent and 7.2 percent, respectively, at June 30, 2022, compared with 6.8 percent and 9.2 percent, respectively, at December 31, 2021. In addition, the Company’s common equity tier 1 capital to risk-weighted assets ratio, reflecting the full implementation of the CECL methodology was 9.4 percent at June 30, 2022, compared with 9.6 percent at December 31, 2021. Refer to “Non-GAAP Financial Measures” beginning on page 31 for further information on these other capital ratios.

Total U.S. Bancorp shareholders’ equity was $48.6 billion at June 30, 2022, compared with $54.9 billion at December 31, 2021. The decrease was primarily the result of changes in unrealized gains and losses on available-for-sale investment securities included in other comprehensive income (loss) and dividends paid, partially offset by corporate earnings and the issuance of preferred stock.

The Company announced on December 22, 2020 that its Board of Directors had approved an authorization to repurchase $3.0 billion of its common stock beginning January 1, 2021, and repurchased $1.5 billion of its common stock during the first six months of 2021 under this program. The Company suspended all common stock repurchases at the beginning of the third quarter of 2021, except for those done exclusively in connection with its stock-based compensation programs, due to its pending acquisition of MUFG Union Bank’s core regional banking franchise. The Company expects to operate at a common equity tier 1 capital ratio near its target ratio of 8.5 percent at the time of closing the acquisition and increasing toward 9.0 percent after closing of the acquisition. The Company does not expect to commence repurchasing its common stock until after the acquisition closes and its common equity tier 1 capital ratio approximates 9.0 percent.

The following table provides a detailed analysis of all shares of common stock of the Company purchased by the Company or any affiliated purchaser during the second quarter of 2022:

Period	Total Number of Shares Purchased			Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Program		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (In Millions)
April		308,312	(a)	$	53.07		8,312	$	1,390
May		392			44.52		392		1,390
June		994			48.05		994		1,390
Total		309,698	(a)	$	53.05		9,698	$	1,390

(a) Includes 300,000 shares of common stock purchased, at an average price per share of $53.11, in open-market transactions by U.S. Bank National Association, the Company’s banking subsidiary, in its capacity as trustee of the U.S. Bank 401(k) Savings Plan, which is the Company’s employee retirement savings plan.

26 U.S. Bancorp

The Company will continue to monitor its capital position and may adjust its capital distributions based on economic conditions and its financial performance. Capital distributions, including dividends and stock repurchases, are subject to the approval of the Company’s Board of Directors and compliance with regulatory requirements.

Refer to “Management’s Discussion and Analysis — Capital Management” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, for further discussion on capital management.

LINE OF BUSINESS FINANCIAL REVIEW

The Company’s major lines of business are Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment Services, Payment Services, and Treasury and Corporate Support. 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.

Basis for Financial Presentation Business line 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. Refer to Note 17 of the Notes to Consolidated Financial Statements for further information on the business lines’ basis for financial presentation.

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 2022, certain organization and methodology changes were made and, accordingly, 2021 results were restated and presented on a comparable basis.

Corporate and Commercial Banking Corporate and Commercial Banking offers lending, equipment finance and small-ticket leasing, depository services, treasury management, capital markets services, international trade services and other financial services to middle market, large corporate, commercial real estate, financial institution, non-profit and public sector clients. Corporate and Commercial Banking contributed $377 million of the Company’s net income in the second quarter and $793 million in the first six months of 2022, or decreases of $41 million (9.8 percent) and $87 million (9.9 percent), respectively, compared with the same periods of 2021.

Net revenue increased $65 million (6.6 percent) in the second quarter and $59 million (3.0 percent) in the first six months of 2022, compared with the same periods of 2021. Net interest income, on a taxable-equivalent basis, increased $58 million (8.0 percent) in the second quarter and $75 million (5.2 percent) in the first six months of 2022, compared with the same periods of 2021. The increases were primarily due to higher loan and interest-bearing deposit balances, partially offset by lower spreads on loans and unfavorable changes in deposit rates. Noninterest income increased $7 million (2.6 percent) in the second quarter of 2022, compared with the second quarter of 2021, primarily due to stronger treasury management fees driven by core growth and increased federal government volume. Noninterest income decreased $16 million (3.0 percent) in the first six months of 2022, compared with the first six months of 2021, primarily due to lower corporate bond fees and trading revenue within the capital markets business, partially offset by higher treasury management fees.

Noninterest expense increased $20 million (4.6 percent) in the second quarter and $25 million (2.9 percent) in the first six months of 2022, compared with the same periods of 2021, primarily due to higher Federal Deposit Insurance Corporation insurance expense and higher compensation expense primarily due to merit increases, variable compensation and hiring to support business growth, partially offset by lower performance-based incentives related to capital markets activity. The provision for credit losses increased $100 million in the second quarter and $150 million in the first six months of 2022, compared with the same periods of 2021, primarily due to loan loss provisions supporting stronger growth in loan balances, partially offset by improving portfolio credit quality.

Consumer and Business Banking Consumer and Business Banking delivers products and services through banking offices, telephone servicing and sales, on-line services, direct mail, ATM processing and mobile devices. It encompasses community banking, metropolitan banking and indirect lending, as well as mortgage banking. Consumer and Business Banking contributed $501 million of the Company’s net income in the second quarter and $880 million in the first six months of 2022, or decreases of $145 million (22.4 percent) and $331 million (27.3 percent), respectively, compared with the same periods of 2021.

U.S. Bancorp 27

 Table 11    Line of Business Financial Performance

	Corporate and Commercial Banking							Consumer and Business Banking									Wealth Management and Investment Services
Three Months Ended June 30 (Dollars in Millions)	2022		2021		Percent Change			2022			2021			Percent Change			2022			2021			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	784	$	726		8.0	%	$	1,617		$	1,534			5.4	%	$	352		$	246			43.1	%
Noninterest income		272		265		2.6			395			634			(37.7	)		652			549			18.8
Total net revenue		1,056		991		6.6			2,012			2,168			(7.2	)		1,004			795			26.3
Noninterest expense		453		433		4.6			1,419			1,375			3.2			581			521			11.5
Income (loss) before provision and income taxes		603		558		8.1			593			793			(25.2	)		423			274			54.4
Provision for credit losses		100		—		*			(75	)		(68	)		(10.3	)		(4	)		(4	)		—
Income (loss) before income taxes		503		558		(9.9	)		668			861			(22.4	)		427			278			53.6
Income taxes and taxable-equivalent adjustment		126		140		(10.0	)		167			215			(22.3	)		107			70			52.9
Net income (loss)		377		418		(9.8	)		501			646			(22.4	)		320			208			53.8
Net (income) loss attributable to noncontrolling interests		—		—		—			—			—			—			—			—			—
Net income (loss) attributable to U.S. Bancorp	$	377	$	418		(9.8	)	$	501		$	646			(22.4	)	$	320		$	208			53.8
Average Balance Sheet
Loans	$	123,210	$	102,275		20.5		$	141,135		$	140,826			.2		$	22,320		$	17,442			28.0
Goodwill		1,912		1,647		16.1			3,244			3,476			(6.7	)		1,718			1,618			6.2
Other intangible assets		4		5		(20.0	)		3,634			2,828			28.5			300			84			*
Assets		137,773		114,186		20.7			156,132			161,695			(3.4	)		25,786			20,470			26.0
Noninterest-bearing deposits		58,266		60,696		(4.0	)		31,642			33,702			(6.1	)		25,019			23,288			7.4
Interest-bearing deposits		93,678		70,019		33.8			168,486			158,164			6.5			71,759			73,347			(2.2	)
Total deposits		151,944		130,715		16.2			200,128			191,866			4.3			96,778			96,635			.1
Total U.S. Bancorp shareholders’ equity		13,989		13,816		1.3			12,366			12,337			.2			3,618			3,089			17.1

	Payment Services							Treasury and Corporate Support									Consolidated Company
Three Months Ended June 30 (Dollars in Millions)	2022		2021		Percent Change			2022			2021			Percent Change			2022			2021			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	619	$	595		4.0	%	$	92		$	63			46.0	%	$	3,464		$	3,164			9.5	%
Noninterest income		994		913		8.9			235			258			(8.9	)		2,548			2,619			(2.7	)
Total net revenue		1,613		1,508		7.0			327			321			1.9			6,012			5,783			4.0
Noninterest expense		871		829		5.1			400			229			74.7			3,724			3,387			9.9
Income (loss) before provision and income taxes		742		679		9.3			(73	)		92			*			2,288			2,396			(4.5	)
Provision for credit losses		221		91		*			69			(189	)		*			311			(170	)		*
Income (loss) before income taxes		521		588		(11.4	)		(142	)		281			*			1,977			2,566			(23.0	)
Income taxes and taxable-equivalent adjustment		130		147		(11.6	)		(87	)		6			*			443			578			(23.4	)
Net income (loss)		391		441		(11.3	)		(55	)		275			*			1,534			1,988			(22.8	)
Net (income) loss attributable to noncontrolling interests		—		—		—			(3	)		(6	)		50.0			(3	)		(6	)		50.0
Net income (loss) attributable to U.S. Bancorp	$	391	$	441		(11.3	)	$	(58	)	$	269			*		$	1,531		$	1,982			(22.8	)
Average Balance Sheet
Loans	$	33,854	$	30,030		12.7		$	3,668		$	3,711			(1.2	)	$	324,187		$	294,284			10.2
Goodwill		3,318		3,176		4.5			—			—			—			10,192			9,917			2.8
Other intangible assets		438		518		(15.4	)		—			—			—			4,376			3,435			27.4
Assets		41,054		35,618		15.3			219,166			219,396			(.1	)		579,911			551,365			5.2
Noninterest-bearing deposits		3,396		5,030		(32.5	)		2,504			2,581			(3.0	)		120,827			125,297			(3.6	)
Interest-bearing deposits		167		141		18.4			1,599			2,242			(28.7	)		335,689			303,913			10.5
Total deposits		3,563		5,171		(31.1	)		4,103			4,823			(14.9	)		456,516			429,210			6.4
Total U.S. Bancorp shareholders’ equity		8,115		7,413		9.5			11,078			16,307			(32.1	)		49,166			52,962			(7.2	)

* Not meaningful

28 U.S. Bancorp

	Corporate and Commercial Banking								Consumer and Business Banking									Wealth Management and Investment Services
Six Months Ended June 30 (Dollars in Millions)	2022		2021			Percent Change			2022			2021			Percent Change			2022		2021		Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	1,523	$	1,448			5.2	%	$	3,129		$	3,035			3.1	%	$	627	$	514		22.0	%
Noninterest income		517		533			(3.0	)		856			1,203			(28.8	)		1,248		1,080		15.6
Total net revenue		2,040		1,981			3.0			3,985			4,238			(6.0	)		1,875		1,594		17.6
Noninterest expense		878		853			2.9			2,839			2,731			4.0			1,174		1,020		15.1
Income (loss) before provision and income taxes		1,162		1,128			3.0			1,146			1,507			(24.0	)		701		574		22.1
Provision for credit losses		104		(46	)		*			(28	)		(108	)		74.1			4		1		*
Income (loss) before income taxes		1,058		1,174			(9.9	)		1,174			1,615			(27.3	)		697		573		21.6
Income taxes and taxable-equivalent adjustment		265		294			(9.9	)		294			404			(27.2	)		175		144		21.5
Net income (loss)		793		880			(9.9	)		880			1,211			(27.3	)		522		429		21.7
Net (income) loss attributable to noncontrolling interests		—		—			—			—			—			—			—		—		—
Net income (loss) attributable to U.S. Bancorp	$	793	$	880			(9.9	)	$	880		$	1,211			(27.3	)	$	522	$	429		21.7
Average Balance Sheet
Loans	$	119,557	$	102,201			17.0		$	140,984		$	141,170			(.1	)	$	21,521	$	17,147		25.5
Goodwill		1,912		1,647			16.1			3,252			3,476			(6.4	)		1,739		1,618		7.5
Other intangible assets		4		5			(20.0	)		3,406			2,661			28.0			283		63		*
Assets		132,856		114,229			16.3			156,770			162,803			(3.7	)		25,124		20,297		23.8
Noninterest-bearing deposits		60,298		58,524			3.0			31,807			33,244			(4.3	)		26,204		22,339		17.3
Interest-bearing deposits		90,336		70,943			27.3			167,279			154,450			8.3			71,024		78,489		(9.5	)
Total deposits		150,634		129,467			16.3			199,086			187,694			6.1			97,228		100,828		(3.6	)
Total U.S. Bancorp shareholders’ equity		13,859		14,092			(1.7	)		12,311			12,407			(.8	)		3,607		3,062		17.8

	Payment Services							Treasury and Corporate Support									Consolidated Company
Six Months Ended June 30 (Dollars in Millions)	2022		2021		Percent Change			2022			2021			Percent Change			2022			2021			Percent Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	1,241	$	1,224		1.4	%	$	144		$	32			*	%	$	6,664		$	6,253			6.6	%
Noninterest income		1,852		1,698		9.1			471			486			(3.1	)		4,944			5,000			(1.1	)
Total net revenue		3,093		2,922		5.9			615			518			18.7			11,608			11,253			3.2
Noninterest expense		1,726		1,627		6.1			609			535			13.8			7,226			6,766			6.8
Income (loss) before provision and income taxes		1,367		1,295		5.6			6			(17	)		*			4,382			4,487			(2.3	)
Provision for credit losses		351		50		*			(8	)		(894	)		99.1			423			(997	)		*
Income (loss) before income taxes		1,016		1,245		(18.4	)		14			877			(98.4	)		3,959			5,484			(27.8	)
Income taxes and taxable-equivalent adjustment		254		311		(18.3	)		(121	)		58			*			867			1,211			(28.4	)
Net income (loss)		762		934		(18.4	)		135			819			(83.5	)		3,092			4,273			(27.6	)
Net (income) loss attributable to noncontrolling interests		—		—		—			(4	)		(11	)		63.6			(4	)		(11	)		63.6
Net income (loss) attributable to U.S. Bancorp	$	762	$	934		(18.4	)	$	131		$	808			(83.8	)	$	3,088		$	4,262			(27.5	)
Average Balance Sheet
Loans	$	32,802	$	29,831		10.0		$	3,744		$	3,789			(1.2	)	$	318,608		$	294,138			8.3
Goodwill		3,322		3,175		4.6			—			—			—			10,225			9,916			3.1
Other intangible assets		450		530		(15.1	)		—			—			—			4,143			3,259			27.1
Assets		39,803		35,356		12.6			224,110			217,372			3.1			578,663			550,057			5.2
Noninterest-bearing deposits		3,534		5,146		(31.3	)		2,532			2,591			(2.3	)		124,375			121,844			2.1
Interest-bearing deposits		164		137		19.7			2,174			1,932			12.5			330,977			305,951			8.2
Total deposits		3,698		5,283		(30.0	)		4,706			4,523			4.0			455,352			427,795			6.4
Total U.S. Bancorp shareholders’ equity		8,067		7,535		7.1			13,460			15,750			(14.5	)		51,304			52,846			(2.9	)

* Not meaningful

U.S. Bancorp 29

Net revenue decreased $156 million (7.2 percent) in the second quarter and $253 million (6.0 percent) in the first six months of 2022, compared with the same periods of 2021. Noninterest income decreased $239 million (37.7 percent) in the second quarter and $347 million (28.8 percent) in the first six months of 2022, compared with the same periods of 2021, primarily due to lower mortgage banking revenue reflecting lower application volume, given declining refinance activities, lower related gain on sale margins and lower performing loan sales, partially offset by an increase in the fair value of MSRs, net of hedging activities. Net interest income, on a taxable-equivalent basis, increased $83 million (5.4 percent) in the second quarter and $94 million (3.1 percent) in the first six months of 2022, compared with the same periods of 2021, reflecting strong growth in interest-bearing deposit balances and favorable funding mix, partially offset by lower spreads on loans and lower loan fees driven by the impact of loan forgiveness related to the SBA Paycheck Protection Program.

Noninterest expense increased $44 million (3.2 percent) in the second quarter and $108 million (4.0 percent) in the first six months of 2022, compared with the same periods of 2021, primarily due to increases in net shared services expense due to investments in digital capabilities. The provision for credit losses decreased $7 million (10.3 percent) in the second quarter of 2022, compared with the second quarter of 2021, due to strong improvements in credit quality in the second quarter of 2022. The provision for credit losses increased $80 million (74.1 percent) in the first six months of 2022, compared with the first six months of 2021, reflecting a decrease in the reserve allocation in the first six months of 2021 due to credit quality improvement.

Wealth Management and Investment Services Wealth Management and Investment Services provides private banking, financial advisory services, investment management, retail brokerage services, insurance, trust, custody and fund servicing through four businesses: Wealth Management, Global Corporate Trust & Custody, U.S. Bancorp Asset Management and Fund Services. Wealth Management and Investment Services contributed $320 million of the Company’s net income in the second quarter and $522 million in the first six months of 2022, or increases of $112 million (53.8 percent) and $93 million (21.7 percent), respectively, compared with the same periods of 2021.

Net revenue increased $209 million (26.3 percent) in the second quarter and $281 million (17.6 percent) in the first six months of 2022, compared with the same periods of 2021. Net interest income, on a taxable-equivalent basis, increased $106 million (43.1 percent) in the second quarter and $113 million (22.0 percent) in the first six months of 2022, compared with the same periods of 2021, primarily due to favorable funding mix, higher average noninterest-bearing deposit balances and higher average loan balances. Noninterest income increased $103 million (18.8 percent) in the second quarter and $168 million (15.6 percent) in the first six months of 2022, compared with the same periods of 2021, primarily due to the impact of the PFM acquisition and core business growth in trust and investment management fees, as well as lower fee waivers related to money market funds.

Noninterest expense increased $60 million (11.5 percent) in the second quarter and $154 million (15.1 percent) in the first six months of 2022, compared with the same periods of 2021, reflecting higher compensation as a result of merit increases, the PFM acquisition, core business growth and performance-based incentives, as well as higher net shared services expense driven by investment in support of business growth. Noninterest expense further increased in the first six months of 2022, compared with the first six months of 2021, due to litigation settlements and fraud-related losses. The provision for credit losses was flat in the second quarter and increased $3 million in the first six months of 2022, compared with the same periods of 2021.

Payment Services Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate, government and purchasing card services, consumer lines of credit and merchant processing. Payment Services contributed $391 million of the Company’s net income in the second quarter and $762 million in the first six months of 2022, or decreases of $50 million (11.3 percent) and $172 million (18.4 percent), respectively, compared with the same periods of 2021.

Net revenue increased $105 million (7.0 percent) in the second quarter and $171 million (5.9 percent) in the first six months of 2022, compared with the same periods of 2021. Noninterest income increased $81 million (8.9 percent) in the second quarter and $154 million (9.1 percent) in the first six months of 2022, compared with the same periods of 2021, mainly due to continued strengthening of consumer and business spending across most sectors. As a result, there was strong growth in merchant processing services revenue driven by higher sales volume and higher merchant fees, partially offset by higher rebates. There was also growth in corporate payment products revenue driven by improving business spending across all product groups. Strong consumer spending also drove an increase in credit and debit card revenue, mostly offset by declining prepaid processing fees as the beneficial impact of

30 U.S. Bancorp

government stimulus programs dissipated year-over-year. Net interest income, on a taxable-equivalent basis, increased $24 million (4.0 percent) in the second quarter and $17 million (1.4 percent) in the first six months of 2022, compared with the same periods of 2021, primarily due to higher loan balances and loan fees, partially offset by lower loan yields driven by declining customer revolve rates.

Noninterest expense increased $42 million (5.1 percent) in the second quarter and $99 million (6.1 percent) in the first six months of 2022, compared with the same periods of 2021, reflecting higher net shared services expense driven by investment in infrastructure and technology development, in addition to higher compensation expense as a result of merit increases, core business growth and variable compensation. The provision for credit losses increased $130 million in the second quarter and $301 million in the first six months of 2022, compared with the same periods of 2021, primarily due to stronger growth in loan balances and relatively stable credit quality in the current year, compared with a stronger decline in delinquencies in the prior year.

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 the business lines, 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. Treasury and Corporate Support recorded a net loss of $58 million in the second quarter and net income of $131 million in the first six months of 2022, compared with net income of $269 million and $808 million in the same periods of 2021, respectively.

Net revenue increased $6 million (1.9 percent) in the second quarter and $97 million (18.7 percent) in the first six months of 2022, compared with the same periods of 2021. Net interest income, on a taxable-equivalent basis, increased $29 million (46.0 percent) in the second quarter and $112 million in the first six months of 2022, compared with the same periods of 2021, primarily due to higher investment securities portfolio and cash balances. Noninterest income decreased $23 million (8.9 percent) in the second quarter and $15 million (3.1 percent) in the first six months of 2022, compared with the same periods of 2021, primarily due to lower securities gains and lower gains on the disposition of assets, partially offset by higher commercial products revenue.

Noninterest expense increased $171 million (74.7 percent) in the second quarter and $74 million (13.8 percent) in the first six months of 2022, compared with the same periods of 2021, primarily due to merger and integration-related charges associated with the planned acquisition of MUFG Union Bank and higher compensation expense reflecting merit increases, hiring to support business growth and core business growth net of lower variable compensation, partially offset by lower net shared services expense. The provision for credit losses increased $258 million in the second quarter and $886 million (99.1 percent) in the first six months of 2022, compared with the same periods of 2021, reflecting the residual impact of changes in the allowance for credit losses being impacted by increasing economic uncertainty in the current year, compared to improving economic conditions in the prior year.

Income taxes are assessed to each line of business at a managerial tax rate of 25.0 percent with the residual tax expense or benefit to arrive at the consolidated effective tax rate included in Treasury and Corporate Support.

NON-GAAP FINANCIAL MEASURES

In addition to capital ratios defined by banking regulators, the Company considers various other measures when evaluating capital utilization and adequacy, including:

• Tangible common equity to tangible assets,

• Tangible common equity to risk-weighted assets, and

• Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the CECL methodology.

These capital measures are viewed by management as useful additional methods of evaluating the Company’s utilization of its capital held and the level of capital available to withstand unexpected negative market or economic conditions. Additionally, presentation of these measures allows investors, analysts and banking regulators to assess the Company’s capital position relative to other financial services companies. These capital measures are not defined in generally accepted accounting principles (“GAAP”), or are not currently effective or defined in banking regulations. In addition, certain of these measures differ from currently effective capital ratios defined by banking regulations principally in that the currently effective ratios, which are subject to certain transitional provisions, temporarily exclude the impact of the 2020 adoption of accounting guidance related to impairment of financial instruments based on the CECL methodology. As a result, these capital measures disclosed by the Company may be considered non-GAAP financial measures. Management believes this information helps investors assess trends in the Company’s capital adequacy.

U.S. Bancorp 31

The Company also discloses net interest income and related ratios and analysis on a taxable-equivalent basis, which may also be considered non-GAAP financial measures. The Company believes this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net interest income arising from taxable and tax-exempt sources. In addition, certain performance measures, including the efficiency ratio and net interest margin utilize net interest income on a taxable-equivalent basis.

There may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider the consolidated financial statements and other financial information contained in this report in their entirety, and not to rely on any single financial measure.

The following table shows the Company’s calculation of these non-GAAP financial measures:

(Dollars in Millions)	June 30, 2022			December 31, 2021
Total equity	$	49,069		$	55,387
Preferred stock		(6,808	)		(6,371	)
Noncontrolling interests		(464	)		(469	)
Goodwill (net of deferred tax liability) (1)		(9,204	)		(9,323	)
Intangible assets, other than mortgage servicing rights		(780	)		(785	)
Tangible common equity (a)		31,813			38,439
Common equity tier 1 capital, determined in accordance with transitional regulatory capital requirements related to the CECL methodology implementation		42,944			41,701
Adjustments (2)		(1,300	)		(1,733	)
Common equity tier 1 capital, reflecting the full implementation of the CECL methodology (b)		41,644			39,968
Total assets		591,381			573,284
Goodwill (net of deferred tax liability) (1)		(9,204	)		(9,323	)
Intangible assets, other than mortgage servicing rights		(780	)		(785	)
Tangible assets (c)		581,397			563,176
Risk-weighted assets, determined in accordance with prescribed regulatory capital requirements effective for the Company (d)		441,804			418,571
Adjustments (3)		(317	)		(357	)
Risk-weighted assets, reflecting the full implementation of the CECL methodology (e)		441,487			418,214
Ratios
Tangible common equity to tangible assets (a)/(c)		5.5	%		6.8	%
Tangible common equity to risk-weighted assets (a)/(d)		7.2			9.2
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the CECL methodology (b)/(e)		9.4			9.6

	Three Months Ended June 30						Six Months Ended June 30
	2022			2021			2022			2021
Net interest income	$	3,435		$	3,137		$	6,608		$	6,200
Taxable-equivalent adjustment (4)		29			27			56			53
Net interest income, on a taxable-equivalent basis		3,464			3,164			6,664			6,253
Net interest income, on a taxable-equivalent basis (as calculated above)		3,464			3,164			6,664			6,253
Noninterest income		2,548			2,619			4,944			5,000
Less: Securities gains (losses), net		19			43			37			68
Total net revenue, excluding net securities gains (losses) (f)		5,993			5,740			11,571			11,185
Noninterest expense (g)		3,724			3,387			7,226			6,766
Efficiency ratio (g)/(f)		62.1	%		59.0	%		62.4	%		60.5	%

(1) Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements.

(2) Includes the estimated increase in the allowance for credit losses related to the adoption of the CECL methodology net of deferred taxes.

(3) Includes the impact of the estimated increase in the allowance for credit losses related to the adoption of the CECL methodology.

(4) Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes.

32 U.S. Bancorp

CRITICAL ACCOUNTING POLICIES

The accounting and reporting policies of the Company comply with accounting principles generally accepted in the United States and conform to general practices within the banking industry. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. The Company’s financial position and results of operations can be affected by these estimates and assumptions, which are integral to understanding the Company’s financial statements. Critical accounting policies are those policies management believes are the most important to the portrayal of the Company’s financial condition and results, and require management to make estimates that are difficult, subjective or complex. Most accounting policies are not considered by management to be critical accounting policies. Management has discussed the development and the selection of critical accounting policies with the Company’s Audit Committee. Those policies considered to be critical accounting policies relate to the allowance for credit losses, fair value estimates, MSRs, and income taxes. These accounting policies are discussed in detail in “Management’s Discussion and Analysis — Critical Accounting Policies” and the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

CONTROLS AND PROCEDURES

Under the supervision and with the participation of the Company’s management, including its principal executive officer and principal financial officer, the Company has evaluated the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)). Based upon this evaluation, the principal executive officer and principal financial officer have concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective.

During the most recently completed fiscal quarter, there was no change made in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

U.S. Bancorp 33

U.S. Bancorp

Consolidated Balance Sheet

(Dollars in Millions)	June 30, 2022			December 31, 2021
	(Unaudited)
Assets
Cash and due from banks	$	39,124		$	28,905
Investment securities
Held-to-maturity (fair value $55,657 and $41,812, respectively)		61,503			41,858
Available-for-sale ($987 and $557 pledged as collateral, respectively) (a)		98,806			132,963
Loans held for sale (including $2,773 and $6,623 of mortgage loans carried at fair value, respectively)		3,943			7,775
Loans
Commercial		125,983			112,023
Commercial real estate		39,753			39,053
Residential mortgages		82,114			76,493
Credit card		23,697			22,500
Other retail		60,822			61,959
Total loans		332,369			312,028
Less allowance for loan losses		(5,832	)		(5,724	)
Net loans		326,537			306,304
Premises and equipment		3,177			3,305
Goodwill		10,157			10,262
Other intangible assets		4,487			3,738
Other assets (including $1,258 and $1,193 of trading securities at fair value pledged as collateral, respectively) (a)		43,647			38,174
Total assets	$	591,381		$	573,284
Liabilities and Shareholders’ Equity
Deposits
Noninterest-bearing	$	129,130		$	134,901
Interest-bearing		337,972			321,182
Total deposits		467,102			456,083
Short-term borrowings		24,963			11,796
Long-term debt		29,408			32,125
Other liabilities		20,839			17,893
Total liabilities		542,312			517,897
Shareholders’ equity
Preferred stock		6,808			6,371
Common stock, par value $0.01 a share—authorized: 4,000,000,000 shares; issued: 6/30/22 and 12/31/21—2,125,725,742 shares		21			21
Capital surplus		8,555			8,539
Retained earnings		70,772			69,201
Less cost of common stock in treasury: 6/30/22—639,959,317 shares; 12/31/21—642,223,571 shares		(27,190	)		(27,271	)
Accumulated other comprehensive income (loss)		(10,361	)		(1,943	)
Total U.S. Bancorp shareholders’ equity		48,605			54,918
Noncontrolling interests		464			469
Total equity		49,069			55,387
Total liabilities and equity	$	591,381		$	573,284

(a) Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.

See Notes to Consolidated Financial Statements.

34 U.S. Bancorp

U.S. Bancorp

Consolidated Statement of Income

(Dollars and Shares in Millions, Except Per Share Data) (Unaudited)	Three Months Ended June 30						Six Months Ended June 30
	2022			2021			2022			2021
Interest Income
Loans	$	2,869		$	2,677		$	5,468		$	5,401
Loans held for sale		54			55			114			122
Investment securities		806			618			1,523			1,135
Other interest income		96			32			138			65
Total interest income		3,825			3,382			7,243			6,723
Interest Expense
Deposits		177			82			257			167
Short-term borrowings		57			18			78			34
Long-term debt		156			145			300			322
Total interest expense		390			245			635			523
Net interest income		3,435			3,137			6,608			6,200
Provision for credit losses		311			(170	)		423			(997	)
Net interest income after provision for credit losses		3,124			3,307			6,185			7,197
Noninterest Income
Credit and debit card revenue		399			396			737			732
Corporate payment products revenue		172			138			330			264
Merchant processing services		425			374			788			692
Trust and investment management fees		566			446			1,066			890
Deposit service charges		165			176			342			337
Treasury management fees		169			160			325			307
Commercial products revenue		290			280			556			560
Mortgage banking revenue		142			346			342			645
Investment products fees		59			60			121			115
Securities gains (losses), net		19			43			37			68
Other		142			200			300			390
Total noninterest income		2,548			2,619			4,944			5,000
Noninterest Expense
Compensation		1,872			1,798			3,725			3,601
Employee benefits		374			337			770			721
Net occupancy and equipment		265			258			534			521
Professional services		111			108			225			206
Marketing and business development		106			90			186			138
Technology and communications		350			362			699			721
Postage, printing and supplies		69			65			141			134
Other intangibles		40			40			87			78
Merger and integration charges		197			—			197			—
Other		340			329			662			646
Total noninterest expense		3,724			3,387			7,226			6,766
Income before income taxes		1,948			2,539			3,903			5,431
Applicable income taxes		414			551			811			1,158
Net income		1,534			1,988			3,092			4,273
Net (income) loss attributable to noncontrolling interests		(3	)		(6	)		(4	)		(11	)
Net income attributable to U.S. Bancorp	$	1,531		$	1,982		$	3,088		$	4,262
Net income applicable to U.S. Bancorp common shareholders	$	1,464		$	1,914		$	2,930		$	4,089
Earnings per common share	$	.99		$	1.29		$	1.97		$	2.73
Diluted earnings per common share	$	.99		$	1.28		$	1.97		$	2.73
Average common shares outstanding		1,486			1,489			1,485			1,495
Average diluted common shares outstanding		1,487			1,490			1,486			1,497

See Notes to Consolidated Financial Statements.

U.S. Bancorp 35

U.S. Bancorp

Consolidated Statement of Comprehensive Income

(Dollars in Millions) (Unaudited)	Three Months Ended June 30						Six Months Ended June 30
	2022			2021			2022			2021
Net income	$	1,534		$	1,988		$	3,092		$	4,273
Other Comprehensive Income (Loss)
Changes in unrealized gains (losses) on investment securities available-for-sale		(4,761	)		1,195			(11,515	)		(2,183	)
Changes in unrealized gains (losses) on derivative hedges		98			14			98			113
Foreign currency translation		(3	)		(1	)		(3	)		24
Reclassification to earnings of realized (gains) losses		84			(11	)		151			7
Income taxes related to other comprehensive income (loss)		1,159			(304	)		2,851			515
Total other comprehensive income (loss)		(3,423	)		893			(8,418	)		(1,524	)
Comprehensive income (loss)		(1,889	)		2,881			(5,326	)		2,749
Comprehensive (income) loss attributable to noncontrolling interests		(3	)		(6	)		(4	)		(11	)
Comprehensive income (loss) attributable to U.S. Bancorp	$	(1,892	)	$	2,875		$	(5,330	)	$	2,738

See Notes to Consolidated Financial Statements.

36 U.S. Bancorp

U.S. Bancorp

Consolidated Statement of Shareholders’ Equity

	U.S. Bancorp Shareholders
(Dollars and Shares in Millions, Except Per Share Data) (Unaudited)	Common Shares Outstanding			Preferred Stock			Common Stock		Capital Surplus			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Total U.S. Bancorp Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance March 31, 2021		1,497		$	5,968		$	21	$	8,487		$	65,740		$	(26,443	)	$	(2,095	)	$	51,678		$	630		$	52,308
Net income (loss)													1,982									1,982			6			1,988
Other comprehensive income (loss)																			893			893						893
Preferred stock dividends (a)													(58	)								(58	)					(58	)
Common stock dividends ($.42 per share)													(625	)								(625	)					(625	)
Issuance of common and treasury stock		1								(7	)					25						18						18
Purchase of treasury stock		(15	)													(887	)					(887	)					(887	)
Distributions to noncontrolling interests																						—			(6	)		(6	)
Net other changes in noncontrolling interests																						—			5			5
Stock option and restricted stock grants										38												38						38
Balance June 30, 2021		1,483		$	5,968		$	21	$	8,518		$	67,039		$	(27,305	)	$	(1,202	)	$	53,039		$	635		$	53,674
Balance March 31, 2022		1,486		$	6,808		$	21	$	8,515		$	69,987		$	(27,193	)	$	(6,938	)	$	51,200		$	468		$	51,668
Net income (loss)													1,531									1,531			3			1,534
Other comprehensive income (loss)																			(3,423	)		(3,423	)					(3,423	)
Preferred stock dividends (b)													(59	)								(59	)					(59	)
Common stock dividends ($.46 per share)													(687	)								(687	)					(687	)
Issuance of common and treasury stock										(3	)					4						1						1
Purchase of treasury stock																(1	)					(1	)					(1	)
Distributions to noncontrolling interests																						—			(2	)		(2	)
Net other changes in noncontrolling interests																						—			(5	)		(5	)
Stock option and restricted stock grants										43												43						43
Balance June 30, 2022		1,486		$	6,808		$	21	$	8,555		$	70,772		$	(27,190	)	$	(10,361	)	$	48,605		$	464		$	49,069
Balance December 31, 2020		1,507		$	5,983		$	21	$	8,511		$	64,188		$	(25,930	)	$	322		$	53,095		$	630		$	53,725
Net income (loss)													4,262									4,262			11			4,273
Other comprehensive income (loss)																			(1,524	)		(1,524	)					(1,524	)
Preferred stock dividends (c)													(148	)								(148	)					(148	)
Common stock dividends ($.84 per share)													(1,258	)								(1,258	)					(1,258	)
Issuance of preferred stock					730																	730						730
Redemption of preferred stock					(745	)							(5	)								(750	)					(750	)
Issuance of common and treasury stock		4								(126	)					162						36						36
Purchase of treasury stock		(28	)													(1,537	)					(1,537	)					(1,537	)
Distributions to noncontrolling interests																						—			(11	)		(11	)
Net other changes in noncontrolling interests																						—			5			5
Stock option and restricted stock grants										133												133						133
Balance June 30, 2021		1,483		$	5,968		$	21	$	8,518		$	67,039		$	(27,305	)	$	(1,202	)	$	53,039		$	635		$	53,674
Balance December 31, 2021		1,484		$	6,371		$	21	$	8,539		$	69,201		$	(27,271	)	$	(1,943	)	$	54,918		$	469		$	55,387
Net income (loss)													3,088									3,088			4			3,092
Other comprehensive income (loss)																			(8,418	)		(8,418	)					(8,418	)
Preferred stock dividends (d)													(143	)								(143	)					(143	)
Common stock dividends ($.92 per share)													(1,374	)								(1,374	)					(1,374	)
Issuance of preferred stock					437																	437						437
Issuance of common and treasury stock		3								(119	)					136						17						17
Purchase of treasury stock		(1	)													(55	)					(55	)					(55	)
Distributions to noncontrolling interests																						—			(4	)		(4	)
Net other changes in noncontrolling interests																						—			(5	)		(5	)
Stock option and restricted stock grants										135												135						135
Balance June 30, 2022		1,486		$	6,808		$	21	$	8,555		$	70,772		$	(27,190	)	$	(10,361	)	$	48,605		$	464		$	49,069

(a) Reflects dividends declared per share on the Company’s Series A, Series B, Series F, Series K, Series L and Series M Non-Cumulative Perpetual Preferred Stock of $884.722, $221.181, $406.25, $343.75, $234.375 and $250.00 respectively.

(b) Reflects dividends declared per share on the Company’s Series A, Series B, Series K, Series L, Series M, Series N and Series O Non-Cumulative Perpetual Preferred Stock of $884.722, $221.181, $343.75, $234.375, $250.00, $231.25 and $281.25 respectively.

(c) Reflects dividends declared per share on the Company’s Series A, Series B, Series F, Series I, Series J, Series K, Series L and Series M Non-Cumulative Perpetual Preferred Stock of $1,759.722, $439.931, $812.50, $232.953, $662.50, $687.50, $468.75 and $452.778 respectively.

(d) Reflects dividends declared per share on the Company’s Series A, Series B, Series J, Series K, Series L, Series M, Series N and Series O Non-Cumulative Perpetual Preferred Stock of $1,759.722, $439.931, $662.50, $687.50, $468.75, $500.00, $462.50 and $487.50 respectively.

See Notes to Consolidated Financial Statements.

U.S. Bancorp 37

U.S. Bancorp

Consolidated Statement of Cash Flows

(Dollars in Millions) (Unaudited)	Six Months Ended June 30
	2022			2021
Operating Activities
Net income attributable to U.S. Bancorp	$	3,088		$	4,262
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses		423			(997	)
Depreciation and amortization of premises and equipment		170			168
Amortization of intangibles		87			78
(Gain) loss on sale of loans held for sale		192			(584	)
(Gain) loss on sale of securities and other assets		(67	)		(192	)
Loans originated for sale, net of repayments		(17,325	)		(37,211	)
Proceeds from sales of loans held for sale		20,564			39,789
Other, net		3,594			1,207
Net cash provided by operating activities		10,726			6,520
Investing Activities
Proceeds from sales of available-for-sale investment securities		14,797			5,567
Proceeds from maturities of held-to-maturity investment securities		2,407			—
Proceeds from maturities of available-for-sale investment securities		9,665			23,685
Purchases of held-to-maturity investment securities		(6,288	)		—
Purchases of available-for-sale investment securities		(18,240	)		(54,911	)
Net (increase) decrease in loans outstanding		(20,072	)		727
Proceeds from sales of loans		1,671			2,386
Purchases of loans		(1,698	)		(2,574	)
Net (increase) decrease in securities purchased under agreements to resell		(154	)		131
Other, net		(1,604	)		(367	)
Net cash used in investing activities		(19,516	)		(25,356	)
Financing Activities
Net increase in deposits		11,019			7,412
Net increase in short-term borrowings		13,167			1,647
Proceeds from issuance of long-term debt		2,206			1,152
Principal payments or redemption of long-term debt		(5,154	)		(5,928	)
Proceeds from issuance of preferred stock		437			730
Proceeds from issuance of common stock		16			36
Repurchase of preferred stock		(1,100	)		(1,250	)
Repurchase of common stock		(55	)		(1,537	)
Cash dividends paid on preferred stock		(154	)		(165	)
Cash dividends paid on common stock		(1,373	)		(1,268	)
Net cash provided by financing activities		19,009			829
Change in cash and due from banks		10,219			(18,007	)
Cash and due from banks at beginning of period		28,905			62,580
Cash and due from banks at end of period	$	39,124		$	44,573

See Notes to Consolidated Financial Statements.

38 U.S. Bancorp

Notes to Consolidated Financial Statements

(Unaudited)

 Note 1    Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flow activity required in accordance with accounting principles generally accepted in the United States. In the opinion of management of U.S. Bancorp (the “Company”), all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of results for the interim periods have been made. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Certain amounts in prior periods have been reclassified to conform to the current period presentation.

  Note 2    Accounting Changes

Reference Interest Rate Transition In March 2020, the Financial Accounting Standards Board (“FASB”) issued accounting guidance, providing temporary optional expedients and exceptions to the guidance in United States generally accepted accounting principles on contract modifications and hedge accounting, to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. Under the guidance, a company can elect not to apply certain modification accounting requirements to contracts affected by reference rate transition, if certain criteria are met. A company that makes this election would not be required to remeasure the contracts at the modification date or reassess a previous accounting determination. This guidance also permits a company to elect various optional expedients that would allow it to continue applying hedge accounting for hedging relationships affected by reference rate transition, if certain criteria are met. The guidance is effective upon issuance and generally can be applied through December 31, 2022. The Company is in the process of evaluating and applying, as applicable, the optional expedients and exceptions in accounting for eligible contract modifications, eligible existing hedging relationships and new hedging relationships available through December 31, 2022. The adoption of this guidance has not had, and is expected to continue to not have, a material impact on the Company’s financial statements.

Fair Value Hedging – Portfolio Layer Method In March 2022, the FASB issued accounting guidance, effective for the Company no later than January 1, 2023, related to fair value hedge accounting of portfolios of financial assets. This guidance expands the current last-of-layer hedging method that permits a company to apply fair value hedging to a stated amount of a closed portfolio of prepayable financial assets, by allowing it to designate multiple hedging relationships on a single closed portfolio, resulting in a larger portion of the interest rate risk associated with such a portfolio being eligible to be hedged. The guidance also expands the scope of the method to include non-prepayable financial assets and clarifies other technical questions from the original accounting guidance. The Company expects the adoption of this guidance will not be material to its financial statements.

Financial Instruments – Troubled Debt Restructurings and Vintage Disclosures In March 2022, the FASB issued accounting guidance, effective for the Company no later than January 1, 2023, related to the recognition and measurement of troubled debt restructurings (“TDRs”) by creditors. This guidance removes the separate recognition and measurement requirements for TDRs by replacing them with a requirement for a company to apply existing accounting guidance to determine whether a modification results in a new loan or a continuation of an existing loan. This guidance also replaces existing TDR disclosures with similar but more expansive disclosures for certain modifications of receivables made to borrowers experiencing financial difficulty. Further, this guidance also requires companies to disclose current-period gross write-offs by year of origination for financing receivables. The guidance can be adopted on a prospective or modified retrospective basis. The Company expects the adoption of this guidance will not be material to its financial statements.

U.S. Bancorp 39

  Note  3    Business Combinations

In September 2021, the Company announced that it entered into a definitive agreement to acquire MUFG Union Bank’s core regional banking franchise from Mitsubishi UFJ Financial Group, Inc. (“MUFG”), for an expected purchase price of approximately $8.0 billion, including $5.5 billion in cash and approximately 44 million shares of the Company’s common stock. The transaction excludes the purchase of substantially all of MUFG Union Bank’s Global Corporate & Investment Bank (other than certain deposits), certain middle and back office functions, and other assets. MUFG Union Bank has approximately 300 branches in California, Washington and Oregon and is expected to add approximately $105 billion in total assets, $58 billion of loans and $90 billion of deposits to the Company’s consolidated balance sheet. Closing of the transaction is subject to customary closing conditions, including regulatory approvals which are not within the Company’s control. The parties continue to make significant progress in planning for closing and integration while awaiting regulatory approvals. At this time, the Company expects to receive U.S. regulatory approvals in time for closing to occur in the second half of 2022. 

  Note  4    Investment Securities

The Company’s held-to-maturity investment securities are carried at historical cost, adjusted for amortization of premiums and accretion of discounts. The Company’s available-for-sale investment securities are carried at fair value with unrealized net gains or losses reported within accumulated other comprehensive income (loss) in shareholders’ equity.

The amortized cost, gross unrealized holding gains and losses, and fair value of held-to-maturity and available-for-sale investment securities were as follows:

	June 30, 2022									December 31, 2021
(Dollars in Millions)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Held-to-maturity
U.S. Treasury and agencies	$	1,343	$	–	$	(6	)	$	1,337	$	–	$	–	$	–		$	–
Residential agency mortgage-backed securities		60,160		2		(5,842	)		54,320		41,858		2		(48	)		41,812
Total held-to-maturity	$	61,503	$	2	$	(5,848	)	$	55,657	$	41,858	$	2	$	(48	)	$	41,812
Available-for-sale
U.S. Treasury and agencies	$	25,779	$	–	$	(2,012	)	$	23,767	$	36,648	$	205	$	(244	)	$	36,609
Mortgage-backed securities
Residential agency		62,788		23		(5,059	)		57,752		76,761		665		(347	)		77,079
Commercial agency		8,756		–		(1,192	)		7,564		8,633		53		(201	)		8,485
Asset-backed securities		–		–		–			–		62		4		–			66
Obligations of state and political subdivisions		10,925		11		(1,220	)		9,716		10,130		607		(20	)		10,717
Other		7		–		–			7		7		–		–			7
Total available-for-sale	$	108,255	$	34	$	(9,483	)	$	98,806	$	132,241	$	1,534	$	(812	)	$	132,963

During the second quarter of 2022, the Company transferred $17.1 billion amortized cost ($15.7 billion fair value) of available-for-sale investment securities to the held-to-maturity category to reflect its new intent for these securities.

Investment securities with a fair value of $16.9 billion at June 30, 2022, and $30.7 billion at December 31, 2021, were pledged to secure public, private and trust deposits, repurchase agreements and for other purposes required by contractual obligation or law. Included in these amounts were securities where the Company and certain counterparties have agreements granting the counterparties the right to sell or pledge the securities. Investment securities securing these types of arrangements had a fair value of $987 million at June 30, 2022, and $557 million at December 31, 2021.

The following table provides information about the amount of interest income from taxable and non-taxable investment securities:

	Three Months Ended June 30				Six Months Ended June 30
(Dollars in Millions)	2022		2021		2022		2021
Taxable	$	732	$	554	$	1,378	$	1,009
Non-taxable		74		64		145		126
Total interest income from investment securities	$	806	$	618	$	1,523	$	1,135

40 U.S. Bancorp

The following table provides information about the amount of gross gains and losses realized through the sales of available-for-sale investment securities:

	Three Months Ended June 30					Six Months Ended June 30
(Dollars in Millions)	2022			2021		2022			2021
Realized gains	$	144		$	43	$	386		$	68
Realized losses		(125	)		–		(349	)		–
Net realized gains	$	19		$	43	$	37		$	68
Income tax on net realized gains	$	5		$	11	$	9		$	17

The Company conducts a regular assessment of its available-for-sale investment securities with unrealized losses to determine whether all or some portion of a security’s unrealized loss is related to credit and an allowance for credit losses is necessary. If the Company intends to sell or it is more likely than not the Company will be required to sell an investment security, the amortized cost of the security is written down to fair value. When evaluating credit losses, the Company considers various factors such as the nature of the investment security, the credit ratings or financial condition of the issuer, the extent of the unrealized loss, expected cash flows of underlying collateral, the existence of any government or agency guarantees, and market conditions. The Company measures the allowance for credit losses using market information where available and discounting the cash flows at the original effective rate of the investment security. The allowance for credit losses is adjusted each period through earnings and can be subsequently recovered. The allowance for credit losses on the Company’s available-for-sale investment securities was immaterial at June 30, 2022 and December 31, 2021.

At June 30, 2022, certain investment securities had a fair value below amortized cost. The following table shows the gross unrealized losses and fair value of the Company’s available-for-sale investment securities with unrealized losses, aggregated by investment category and length of time the individual investment securities have been in continuous unrealized loss positions, at June 30, 2022:

	Less Than 12 Months					12 Months or Greater					Total
(Dollars in Millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury and agencies	$	19,590	$	(1,581	)	$	3,511	$	(431	)	$	23,101	$	(2,012	)
Residential agency mortgage-backed securities		50,819		(4,281	)		5,360		(778	)		56,179		(5,059	)
Commercial agency mortgage-backed securities		4,852		(657	)		2,711		(535	)		7,563		(1,192	)
Obligations of state and political subdivisions		8,430		(1,057	)		396		(163	)		8,826		(1,220	)
Other		6		–			–		–			6		–
Total investment securities	$	83,697	$	(7,576	)	$	11,978	$	(1,907	)	$	95,675	$	(9,483	)

These unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase of these available-for-sale investment securities. U.S. Treasury and agencies securities and agency mortgage-backed securities are issued, guaranteed or otherwise supported by the United States government. The Company’s obligations of state and political subdivisions are generally high grade. Accordingly, the Company does not consider these unrealized losses to be credit-related and an allowance for credit losses is not necessary. In general, the issuers of the investment securities are contractually prohibited from prepayment at less than par, and the Company did not pay significant purchase premiums for these investment securities. At June 30, 2022, the Company had no plans to sell investment securities with unrealized losses, and believes it is more likely than not it would not be required to sell such investment securities before recovery of their amortized cost.

During the six months ended June 30, 2022 and 2021, the Company did not purchase any investment securities that had more-than-insignificant credit deterioration.

All of the Company’s held-to-maturity investment securities are highly rated agency mortgage-backed securities that are guaranteed or otherwise supported by the United States government and have no history of credit losses. Accordingly the Company does not expect to incur any credit losses on held-to-maturity investment securities and has no allowance for credit losses recorded for these securities.

U.S. Bancorp 41

The following table provides information about the amortized cost, fair value and yield by maturity date of the investment securities outstanding at June 30, 2022:

(Dollars in Millions)	Amortized Cost		Fair Value		Weighted- Average Maturity in Years		Weighted- Average Yield (e)
Held-to-maturity
U.S. Treasury and Agencies
Maturing in one year or less	$	–	$	–		–		–	%
Maturing after one year through five years		1,343		1,337		3.8		2.85
Maturing after five years through ten years		–		–		–		–
Maturing after ten years		–		–		–		–
Total	$	1,343	$	1,337		3.8		2.85	%
Mortgage-Backed Securities (a)
Maturing in one year or less	$	–	$	–		–		–	%
Maturing after one year through five years		–		–		–		–
Maturing after five years through ten years		23,977		22,825		9.1		2.22
Maturing after ten years		36,183		31,495		10.6		1.72
Total	$	60,160	$	54,320		10.0		1.92	%
Total held-to-maturity (d)	$	61,503	$	55,657		9.8		1.94	%
Available-for-sale
U.S. Treasury and Agencies
Maturing in one year or less	$	1,826	$	1,824		.3		1.96	%
Maturing after one year through five years		3,525		3,296		4.4		1.50
Maturing after five years through ten years		17,771		16,479		7.4		2.04
Maturing after ten years		2,657		2,168		11.8		1.99
Total	$	25,779	$	23,767		6.9		1.95	%
Mortgage-Backed Securities (a)
Maturing in one year or less	$	44	$	44		.7		2.67	%
Maturing after one year through five years		12,785		12,381		3.2		2.03
Maturing after five years through ten years		33,303		30,454		7.9		1.81
Maturing after ten years		25,412		22,437		10.6		2.11
Total	$	71,544	$	65,316		8.0		1.96	%
Obligations of State and Political Subdivisions (b) (c)
Maturing in one year or less	$	182	$	182		.3		4.63	%
Maturing after one year through five years		1,974		1,955		4.0		4.43
Maturing after five years through ten years		1,480		1,401		7.2		3.82
Maturing after ten years		7,289		6,178		16.9		3.36
Total	$	10,925	$	9,716		13.0		3.64	%
Other
Maturing in one year or less	$	–	$	–		–		–	%
Maturing after one year through five years		7		7		2.9		2.07
Maturing after five years through ten years		–		–		–		–
Maturing after ten years		–		–		–		–
Total	$	7	$	7		2.9		2.07	%
Total available-for-sale (d)	$	108,255	$	98,806		8.2		2.13	%

(a) Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future prepayments.

(b) Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to maturity if the security is purchased at par or a discount.

(c) Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity date for securities with a fair value equal to or below par.

(d) The weighted-average maturity of total held-to-maturity investment securities was 7.4 years at December 31, 2021, with a corresponding weighted-average yield of 1.45 percent. The weighted-average maturity of total available-for-sale investment securities was 5.5 years at December 31, 2021, with a corresponding weighted-average yield of 1.73 percent.

(e) Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent. Yields on investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity.

42 U.S. Bancorp

  Note  5    Loans and Allowance for Credit Losses

The composition of the loan portfolio, disaggregated by class and underlying specific portfolio type, was as follows:

	June 30, 2022					December 31, 2021
(Dollars in Millions)	Amount		Percent of Total			Amount		Percent of Total
Commercial
Commercial	$	121,130		36.4	%	$	106,912		34.3	%
Lease financing		4,853		1.5			5,111		1.6
Total commercial		125,983		37.9			112,023		35.9
Commercial Real Estate
Commercial mortgages		29,864		9.0			28,757		9.2
Construction and development		9,889		3.0			10,296		3.3
Total commercial real estate		39,753		12.0			39,053		12.5
Residential Mortgages
Residential mortgages		73,522		22.1			67,546		21.6
Home equity loans, first liens		8,592		2.6			8,947		2.9
Total residential mortgages		82,114		24.7			76,493		24.5
Credit Card		23,697		7.1			22,500		7.2
Other Retail
Retail leasing		6,490		2.0			7,256		2.3
Home equity and second mortgages		10,973		3.3			10,446		3.4
Revolving credit		2,764		.8			2,750		.9
Installment		16,656		5.0			16,514		5.3
Automobile		23,830		7.2			24,866		8.0
Student		109		–			127		–
Total other retail		60,822		18.3			61,959		19.9
Total loans	$	332,369		100.0	%	$	312,028		100.0	%

The Company had loans of $92.4 billion at June 30, 2022, and $92.1 billion at December 31, 2021, pledged at the Federal Home Loan Bank, and loans of $83.7 billion at June 30, 2022, and $76.9 billion at December 31, 2021, pledged at the Federal Reserve Bank.

Originated loans are reported at the principal amount outstanding, net of unearned interest and deferred fees and costs, and any partial charge-offs recorded. Net unearned interest and deferred fees and costs amounted to $364 million at June 30, 2022 and $475 million at December 31, 2021. All purchased loans are recorded at fair value at the date of purchase. The Company evaluates purchased loans for more-than-insignificant deterioration at the date of purchase in accordance with applicable authoritative accounting guidance. Purchased loans that have experienced more-than-insignificant deterioration from origination are considered purchased credit deteriorated loans. All other purchased loans are considered non-purchased credit deteriorated loans.

Allowance for Credit Losses The allowance for credit losses is established for current expected credit losses on the Company’s loan and lease portfolio, including unfunded credit commitments. The allowance considers expected losses for the remaining lives of the applicable assets, inclusive of expected recoveries. The allowance for credit losses is increased through provisions charged to earnings and reduced by net charge-offs. Management evaluates the appropriateness of the allowance for credit losses on a quarterly basis.

Multiple economic scenarios are considered over a three-year reasonable and supportable forecast period, which includes increasing consideration of historical loss experience over years two and three. These economic scenarios are constructed with interrelated projections of multiple economic variables, and loss estimates are produced that consider the historical correlation of those economic variables with credit losses. After the forecast period, the Company fully reverts to long-term historical loss experience, adjusted for prepayments and characteristics of the current loan and lease portfolio, to estimate losses over the remaining life of the portfolio. The economic scenarios are updated at least quarterly and are designed to provide a range of reasonable estimates, from better to worse than current expectations. Scenarios are weighted based on the Company’s expectation of economic conditions for the foreseeable future and reflect significant judgment and consideration of economic forecast uncertainty. Final loss estimates also consider factors affecting credit losses not reflected in the scenarios, due to the unique aspects of current conditions and expectations. These factors may include, but are not limited to, loan servicing practices, regulatory guidance, and/or fiscal and monetary policy actions.

The allowance recorded for credit losses utilizes forward-looking expected loss models to consider a variety of factors affecting lifetime credit losses. These factors include, but are not limited to, macroeconomic variables such as unemployment rates, real estate prices, gross domestic product levels and corporate bonds spreads, as well as loan and

U.S. Bancorp 43

borrower characteristics, such as internal risk ratings on commercial loans and consumer credit scores, delinquency status, collateral type and available valuation information, consideration of end-of-term losses on lease residuals, and the remaining term of the loan, adjusted for expected prepayments. For each loan portfolio, model estimates are adjusted as necessary to consider any relevant changes in portfolio composition, lending policies, underwriting standards, risk management practices, economic conditions or other factors that would affect the accuracy of the model. Expected credit loss estimates also include consideration of expected cash recoveries on loans previously charged-off or expected recoveries on collateral dependent loans where recovery is expected through sale of the collateral. Where loans do not exhibit similar risk characteristics, an individual analysis is performed to consider expected credit losses. The allowance recorded for individually evaluated loans greater than $5 million in the commercial lending segment is based on an analysis utilizing expected cash flows discounted using the original effective interest rate, the observable market price of the loan, or the fair value of the collateral, less selling costs, for collateral-dependent loans as appropriate.

The allowance recorded for Troubled Debt Restructuring (“TDR”) loans in the consumer lending segment is determined on a homogenous pool basis utilizing expected cash flows discounted using the original effective interest rate of the pool. The expected cash flows on TDR loans consider subsequent payment defaults since modification, the borrower’s ability to pay under the restructured terms, and the timing and amount of payments. The allowance for collateral-dependent loans in the consumer lending segment is determined based on the fair value of the collateral less costs to sell. For commercial TDRs individually evaluated for impairment, attributes of the borrower are the primary factors in determining the allowance for credit losses. For smaller commercial loans collectively evaluated for impairment, historical loss experience is also incorporated into the allowance methodology applied to this category of loans.

The Company’s methodology for determining the appropriate allowance for credit losses also considers the imprecision inherent in the methodologies used and allocated to the various loan portfolios. As a result, amounts determined under the methodologies described above, are adjusted by management to consider the potential impact of other qualitative factors not captured in the quantitative model adjustments which include, but are not limited to the following: model imprecision, imprecision in economic scenario assumptions, and emerging risks related to either changes in the environment that are affecting specific portfolios, or changes in portfolio concentrations over time that may affect model performance. The consideration of these items results in adjustments to allowance amounts included in the Company’s allowance for credit losses for each loan portfolio.

The Company also assesses the credit risk associated with off-balance sheet loan commitments, letters of credit, investment securities and derivatives. Credit risk associated with derivatives is reflected in the fair values recorded for those positions. The liability for off-balance sheet credit exposure related to loan commitments and other credit guarantees is included in other liabilities. Because business processes and credit risks associated with unfunded credit commitments are essentially the same as for loans, the Company utilizes similar processes to estimate its liability for unfunded credit commitments.

The results of the analysis are evaluated quarterly to confirm the estimates are appropriate for each specific loan portfolio, as well as the entire loan portfolio, as the entire allowance for credit losses is available for the entire loan portfolio.

44 U.S. Bancorp

Activity in the allowance for credit losses by portfolio class was as follows:

Three Months Ended June 30 (Dollars in Millions)	Commercial			Commercial Real Estate			Residential Mortgages			Credit Card			Other Retail			Total Loans
2022
Balance at beginning of period		$1,836			$1,074			$600			$1,639			$   956			$6,105
Add
Provision for credit losses		90			(95	)		49			225			42			311
Deduct
Loans charged-off		53			9			2			162			50			276
Less recoveries of loans charged-off		(23	)		(3	)		(11	)		(44	)		(34	)		(115	)
Net loan charge-offs (recoveries)		30			6			(9	)		118			16			161
Balance at end of period		$1,896			$   973			$658			$1,746			$   982			$6,255
2021
Balance at beginning of period		$1,932			$1,532			$539			$1,952			$1,005			$6,960
Add
Provision for credit losses		(67	)		(123	)		(71	)		87			4			(170	)
Deduct
Loans charged-off		58			4			5			192			55			314
Less recoveries of loans charged-off		(31	)		(4	)		(15	)		(44	)		(40	)		(134	)
Net loan charge-offs (recoveries)		27			–			(10	)		148			15			180
Balance at end of period		$1,838			$1,409			$478			$1,891			$   994			$6,610

Six Months Ended June 30 (Dollars in Millions)	Commercial			Commercial Real Estate			Residential Mortgages			Credit Card			Other Retail			Total Loans
2022
Balance at beginning of period		$1,849			$1,123			$565			$1,673			$   945			$6,155
Add
Provision for credit losses		109			(149	)		78			303			82			423
Deduct
Loans charged-off		108			10			7			320			111			556
Less recoveries of loans charged-off		(46	)		(9	)		(22	)		(90	)		(66	)		(233	)
Net loan charge-offs (recoveries)		62			1			(15	)		230			45			323
Balance at end of period		$1,896			$   973			$658			$1,746			$   982			$6,255
2021
Balance at beginning of period		$2,423			$1,544			$573			$2,355			$1,115			$8,010
Add
Provision for credit losses		(502	)		(142	)		(110	)		(172	)		(71	)		(997	)
Deduct
Loans charged-off		144			14			10			382			138			688
Less recoveries of loans charged-off		(61	)		(21	)		(25	)		(90	)		(88	)		(285	)
Net loan charge-offs (recoveries)		83			(7	)		(15	)		292			50			403
Balance at end of period		$1,838			$1,409			$478			$1,891			$   994			$6,610

The increase in the allowance for credit losses from December 31, 2021 to June 30, 2022 reflected strong loan growth and increased economic uncertainty, partially offset by stabilizing credit quality.

Credit Quality The credit quality of the Company’s loan portfolios is assessed as a function of net credit losses, levels of nonperforming assets and delinquencies, and credit quality ratings as defined by the Company.

For all loan portfolio classes, loans are considered past due based on the number of days delinquent except for monthly amortizing loans which are classified delinquent based upon the number of contractually required payments not made (for example, two missed payments is considered 30 days delinquent). When a loan is placed on nonaccrual status, unpaid accrued interest is reversed, reducing interest income in the current period.

Commercial lending segment loans are generally placed on nonaccrual status when the collection of principal and interest has become 90 days past due or is otherwise considered doubtful. Commercial lending segment loans are generally fully charged down if unsecured by collateral or partially charged down to the fair value of the collateral securing the loan, less costs to sell, when the loan is placed on nonaccrual.

Consumer lending segment loans are generally charged-off at a specific number of days or payments past due. Residential mortgages and other retail loans secured by 1-4 family properties are generally charged down to the fair value of the collateral securing the loan, less costs to sell, at 180 days past due. Residential mortgage loans and lines in a first lien position are placed on nonaccrual status in instances where a partial charge-off occurs unless the loan is well secured and in the process of collection. Residential mortgage loans and lines in a junior lien position secured by 1-4 family properties are placed on nonaccrual status at 120 days past due or when they are behind a first lien that has

U.S. Bancorp 45

become 180 days or greater past due or placed on nonaccrual status. Any secured consumer lending segment loan whose borrower has had debt discharged through bankruptcy, for which the loan amount exceeds the fair value of the collateral, is charged down to the fair value of the related collateral and the remaining balance is placed on nonaccrual status. Credit card loans continue to accrue interest until the account is charged-off. Credit cards are charged-off at 180 days past due. Other retail loans not secured by 1-4 family properties are charged-off at 120 days past due; and revolving consumer lines are charged-off at 180 days past due. Similar to credit cards, other retail loans are generally not placed on nonaccrual status because of the relative short period of time to charge-off. Certain retail customers having financial difficulties may have the terms of their credit card and other loan agreements modified to require only principal payments and, as such, are reported as nonaccrual.

For all loan classes, interest payments received on nonaccrual loans are generally recorded as a reduction to a loan’s carrying amount while a loan is on nonaccrual and are recognized as interest income upon payoff of the loan. However, interest income may be recognized for interest payments if the remaining carrying amount of the loan is believed to be collectible. In certain circumstances, loans in any class may be restored to accrual status, such as when a loan has demonstrated sustained repayment performance or no amounts are past due and prospects for future payment are no longer in doubt; or when the loan becomes well secured and is in the process of collection. Loans where there has been a partial charge-off may be returned to accrual status if all principal and interest (including amounts previously charged-off) is expected to be collected and the loan is current.

The following table provides a summary of loans by portfolio class, including the delinquency status of those that continue to accrue interest, and those that are nonperforming:

	Accruing
(Dollars in Millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Nonperforming (b)		Total
June 30, 2022
Commercial	$	125,490		$   254		$  91		$148		$125,983
Commercial real estate		39,519		24		4		206		39,753
Residential mortgages (a)		81,689		100		102		223		82,114
Credit card		23,333		200		164		–		23,697
Other retail		60,376		236		62		148		60,822
Total loans	$	330,407		$   814		$423		$725		$332,369
December 31, 2021
Commercial	$	111,270		$   530		$49		$174		$112,023
Commercial real estate		38,678		80		11		284		39,053
Residential mortgages (a)		75,962		124		181		226		76,493
Credit card		22,142		193		165		–		22,500
Other retail		61,468		275		66		150		61,959
Total loans	$	309,520		$1,202		$472		$834		$312,028

(a) At June 30, 2022, $642 million of loans 30–89 days past due and $1.7 billion of loans 90 days or more past due purchased and loans that could be purchased from Government National Mortgage Association (“GNMA”) mortgage pools under delinquent loan repurchase options whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current, compared with $791 million and $1.5 billion at December 31, 2021, respectively.

(b) Substantially all nonperforming loans at June 30, 2022 and December 31, 2021, had an associated allowance for credit losses. The Company recognized interest income on nonperforming loans of $5 million and $4 million for the three months ended June 30, 2022 and 2021, respectively, and $8 million and $7 million for the six months ended June 30, 2022 and 2021, respectively.

At June 30, 2022, the amount of foreclosed residential real estate held by the Company, and included in other real estate owned (“OREO”), was $23 million, compared with $22 million at December 31, 2021. These amounts excluded $40 million and $22 million at June 30, 2022 and December 31, 2021, respectively, of foreclosed residential real estate related to mortgage loans whose payments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. In addition, the amount of residential mortgage loans secured by residential real estate in the process of foreclosure at June 30, 2022 and December 31, 2021, was $1.1 billion and $696 million, respectively, of which $898 million and $555 million, respectively, related to loans purchased and loans that could be purchased from Government National Mortgage Association (“GNMA”) mortgage pools under delinquent loan repurchase options whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. 

The Company classifies its loan portfolio classes using internal credit quality ratings on a quarterly basis. These ratings include pass, special mention and classified, and are an important part of the Company’s overall credit risk management process and evaluation of the allowance for credit losses. Loans with a pass rating represent those loans not classified on the Company’s rating scale for problem credits, as minimal credit risk has been identified. Special mention loans are those loans that have a potential weakness deserving management’s close attention. Classified loans

46 U.S. Bancorp

are those loans where a well-defined weakness has been identified that may put full collection of contractual cash flows at risk. It is possible that others, given the same information, may reach different reasonable conclusions regarding the credit quality rating classification of specific loans.

The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating:

	June 30, 2022										December 31, 2021
			Criticized										Criticized
(Dollars in Millions)	Pass		Special Mention		Classified (a)		Total Criticized		Total		Pass		Special Mention		Classified (a)		Total Criticized		Total
Commercial
Originated in 2022		$  32,672		$     52		$   142		$   194		$  32,866		$          –		$       –		$       –		$         –		$          –
Originated in 2021		40,532		298		110		408		40,940		51,155		387		287		674		51,829
Originated in 2020		9,809		11		292		303		10,112		14,091		304		133		437		14,528
Originated in 2019		6,624		6		61		67		6,691		10,159		151		54		205		10,364
Originated in 2018		3,313		3		20		23		3,336		5,122		3		36		39		5,161
Originated prior to 2018		3,902		18		38		56		3,958		4,923		30		81		111		5,034
Revolving (b)		27,628		277		175		452		28,080		24,722		268		117		385		25,107
Total commercial		124,480		665		838		1,503		125,983		110,172		1,143		708		1,851		112,023
Commercial real estate
Originated in 2022		6,689		148		449		597		7,286		–		–		–		–		–
Originated in 2021		11,992		63		452		515		12,507		13,364		6		990		996		14,360
Originated in 2020		6,570		16		181		197		6,767		7,459		198		263		461		7,920
Originated in 2019		5,009		140		340		480		5,489		6,368		251		610		861		7,229
Originated in 2018		2,348		29		211		240		2,588		2,996		29		229		258		3,254
Originated prior to 2018		3,438		19		143		162		3,600		4,473		55		224		279		4,752
Revolving		1,511		–		5		5		1,516		1,494		1		43		44		1,538
Total commercial real estate		37,557		415		1,781		2,196		39,753		36,154		540		2,359		2,899		39,053
Residential mortgages (c)
Originated in 2022		12,396		–		–		–		12,396		–		–		–		–		–
Originated in 2021		29,446		–		3		3		29,449		29,882		–		3		3		29,885
Originated in 2020		14,384		–		10		10		14,394		15,948		1		8		9		15,957
Originated in 2019		5,834		–		24		24		5,858		6,938		–		36		36		6,974
Originated in 2018		2,383		–		18		18		2,401		2,889		–		30		30		2,919
Originated prior to 2018		17,328		–		288		288		17,616		20,415		–		342		342		20,757
Revolving		–		–		–		–		–		1		–		–		–		1
Total residential mortgages		81,771		–		343		343		82,114		76,073		1		419		420		76,493
Credit card (d)		23,532		–		165		165		23,697		22,335		–		165		165		22,500
Other retail
Originated in 2022		7,650		–		1		1		7,651		–		–		–		–		–
Originated in 2021		18,825		–		8		8		18,833		22,455		–		6		6		22,461
Originated in 2020		9,981		–		10		10		9,991		12,071		–		9		9		12,080
Originated in 2019		5,476		–		13		13		5,489		7,223		–		17		17		7,240
Originated in 2018		2,204		–		10		10		2,214		3,285		–		14		14		3,299
Originated prior to 2018		2,626		–		18		18		2,644		3,699		–		24		24		3,723
Revolving		13,381		–		113		113		13,494		12,532		–		112		112		12,644
Revolving converted to term		464		–		42		42		506		472		–		40		40		512
Total other retail		60,607		–		215		215		60,822		61,737		–		222		222		61,959
Total loans		$327,947		$1,080		$3,342		$4,422		$332,369		$306,471		$1,684		$3,873		$5,557		$312,028
Total outstanding commitments		$702,561		$2,021		$4,851		$6,872		$709,433		$662,363		$3,372		$5,684		$9,056		$671,419

Note: Year of origination is based on the origination date of a loan, or for existing loans the date when the maturity date, pricing or commitment amount is amended.

(a) Classified rating on consumer loans primarily based on delinquency status.

(b) Includes an immaterial amount of revolving converted to term loans.

(c) At June 30, 2022, $1.7 billion of GNMA loans 90 days or more past due and $965 million of restructured GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs were classified with a pass rating, compared with $1.5 billion and $1.1 billion at December 31, 2021, respectively.

(d) Predominately all credit card loans are considered revolving loans. Includes an immaterial amount of revolving converted to term loans.

Troubled Debt Restructurings In certain circumstances, the Company may modify the terms of a loan to maximize the collection of amounts due when a borrower is experiencing financial difficulties or is expected to experience difficulties in the near-term. Concessionary modifications are classified as TDRs unless the modification results in only an insignificant delay in payments to be received. The Company recognizes interest on TDRs if the borrower complies with the revised terms and conditions as agreed upon with the Company and has demonstrated repayment performance at a level commensurate with the modified terms over several payment cycles, which is generally six months or greater. To the extent a previous restructuring was insignificant, the Company considers the cumulative effect of past restructurings related to the receivable when determining whether a current restructuring is a TDR.

U.S. Bancorp 47

The following table provides a summary of loans modified as TDRs for the periods presented by portfolio class:

	2022						2021
(Dollars in Millions)	Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance		Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance
Three Months Ended June 30
Commercial		506		$     50		$  41		526		$     12		$     13
Commercial real estate		28		11		9		30		38		41
Residential mortgages		366		106		106		360		141		140
Credit card		8,696		48		49		5,050		31		31
Other retail		756		24		20		468		18		17
Total loans, excluding loans purchased from GNMA mortgage pools		10,352		239		225		6,434		240		242
Loans purchased from GNMA mortgage pools		353		47		50		478		67		69
Total loans		10,705		$   286		$275		6,912		$   307		$   311
Six Months Ended June 30
Commercial		1,015		$     88		$  73		1,230		$     87		$     73
Commercial real estate		37		22		19		86		124		112
Residential mortgages		1,206		334		332		696		245		244
Credit card		18,035		98		99		10,836		64		65
Other retail		1,484		61		57		1,793		55		49
Total loans, excluding loans purchased from GNMA mortgage pools		21,777		603		580		14,641		575		543
Loans purchased from GNMA mortgage pools		743		102		105		1,037		154		158
Total loans		22,520		$   705		$685		15,678		$   729		$   701

Residential mortgages, home equity and second mortgages, and loans purchased from GNMA mortgage pools in the table above include trial period arrangements offered to customers during the periods presented. The post-modification balances for these loans reflect the current outstanding balance until a permanent modification is made. In addition, the post-modification balances typically include capitalization of unpaid accrued interest and/or fees under the various modification programs. At June 30, 2022, 8 residential mortgages, 8 home equity and second mortgage loans and 97 loans purchased from GNMA mortgage pools with outstanding balances of less than $1 million, less than $1 million and $13 million, respectively, were in a trial period and have estimated post-modification balances of less than $1 million, less than $1 million and $14 million, respectively, assuming permanent modification occurs at the end of the trial period.

The Company has implemented certain restructuring programs that may result in TDRs. However, many of the Company’s TDRs are also determined on a case-by-case basis in connection with ongoing loan collection processes.

For the commercial lending segment, modifications generally result in the Company working with borrowers on a case-by-case basis. Commercial and commercial real estate modifications generally include extensions of the maturity date and may be accompanied by an increase or decrease to the interest rate, which may not be deemed a market interest rate. In addition, the Company may work with the borrower in identifying other changes that mitigate loss to the Company, which may include additional collateral or guarantees to support the loan. To a lesser extent, the Company may waive contractual principal. The Company classifies all of the above concessions as TDRs to the extent the Company determines that the borrower is experiencing financial difficulty.

Modifications for the consumer lending segment are generally part of programs the Company has initiated. The Company modifies residential mortgage loans under Federal Housing Administration, United States Department of Veterans Affairs, or its own internal programs. Under these programs, the Company offers qualifying homeowners the opportunity to permanently modify their loan and achieve more affordable monthly payments by providing loan concessions. These concessions may include adjustments to interest rates, conversion of adjustable rates to fixed rates, extension of maturity dates or deferrals of payments, capitalization of accrued interest and/or outstanding advances, or in limited situations, partial forgiveness of loan principal. In most instances, participation in residential mortgage loan restructuring programs requires the customer to complete a short-term trial period. A permanent loan modification is contingent on the customer successfully completing the trial period arrangement, and the loan documents are not modified until that time. The Company reports loans in a trial period arrangement as TDRs and continues to report them as TDRs after the trial period.

Credit card and other retail loan TDRs are generally part of distinct restructuring programs providing customers experiencing financial difficulty with modifications whereby balances may be amortized up to 60 months, and generally include waiver of fees and reduced interest rates.

48 U.S. Bancorp

In addition, the Company considers secured loans to consumer borrowers that have debt discharged through bankruptcy where the borrower has not reaffirmed the debt to be TDRs.

The following table provides a summary of TDR loans that defaulted (fully or partially charged-off or became 90 days or more past due) for the periods presented, that were modified as TDRs within 12 months previous to default:

	2022				2021
(Dollars in Millions)	Number of Loans		Amount Defaulted		Number of Loans		Amount Defaulted
Three Months Ended June 30
Commercial		175		$  3		327		$    8
Commercial real estate		2		1		5		1
Residential mortgages		79		7		12		1
Credit card		1,727		9		1,805		11
Other retail		60		1		191		3
Total loans, excluding loans purchased from GNMA mortgage pools		2,043		21		2,340		24
Loans purchased from GNMA mortgage pools		120		17		43		6
Total loans		2,163		$38		2,383		$  30
Six Months Ended June 30
Commercial		389		$  6		612		$  24
Commercial real estate		5		2		12		6
Residential mortgages		113		10		27		3
Credit card		3,361		18		3,569		20
Other retail		143		2		471		8
Total loans, excluding loans purchased from GNMA mortgage pools		4,011		38		4,691		61
Loans purchased from GNMA mortgage pools		169		25		73		10
Total loans		4,180		$63		4,764		$  71

In addition to the defaults in the table above, the Company had a total of 12 and 28 residential mortgage loans, home equity and second mortgage loans and loans purchased from GNMA mortgage pools for the three months and six months ended June 30, 2022, respectively, where borrowers did not successfully complete the trial period arrangement and, therefore, are no longer eligible for a permanent modification under the applicable modification program. These loans had aggregate outstanding balances of $2 million and $4 million for the three months and six months ended June 30, 2022, respectively.

As of June 30, 2022, the Company had $112 million of commitments to lend additional funds to borrowers whose terms of their outstanding owed balances have been modified in TDRs.

 Note 6    Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities

The Company transfers financial assets in the normal course of business. The majority of the Company’s financial asset transfers are residential mortgage loan sales primarily to government-sponsored enterprises (“GSEs”), transfers of tax-advantaged investments, commercial loan sales through participation agreements, and other individual or portfolio loan and securities sales. In accordance with the accounting guidance for asset transfers, the Company considers any ongoing involvement with transferred assets in determining whether the assets can be derecognized from the balance sheet. Guarantees provided to certain third parties in connection with the transfer of assets are further discussed in Note 16.

For loans sold under participation agreements, the Company also considers whether the terms of the loan participation agreement meet the accounting definition of a participating interest. With the exception of servicing and certain performance-based guarantees, the Company’s continuing involvement with financial assets sold is minimal and generally limited to market customary representation and warranty clauses. Any gain or loss on sale depends on the previous carrying amount of the transferred financial assets, the consideration received, and any liabilities incurred in exchange for the transferred assets. Upon transfer, any servicing assets and other interests that continue to be held by the Company are initially recognized at fair value. For further information on mortgage servicing rights (“MSRs”), refer to Note 7. On a limited basis, the Company may acquire and package high-grade corporate bonds for select corporate customers, in which the Company generally has no continuing involvement with these transactions. Additionally, the Company is an authorized GNMA issuer and issues GNMA securities on a regular basis. The Company has no other asset securitizations or similar asset-backed financing arrangements that are off-balance sheet.

U.S. Bancorp 49

The Company also provides financial support primarily through the use of waivers of trust and investment management fees associated with various unconsolidated registered money market funds it manages. The Company provided $7 million and $70 million of support to the funds during the three months ended June 30, 2022 and 2021, respectively, and $65 million and $117 million during the six months ended June 30, 2022 and 2021, respectively.

The Company is involved in various entities that are considered to be variable interest entities (“VIEs”). The Company’s investments in VIEs are primarily related to investments promoting affordable housing, community development and renewable energy sources. Some of these tax-advantaged investments support the Company’s regulatory compliance with the Community Reinvestment Act. The Company’s investments in these entities generate a return primarily through the realization of federal and state income tax credits, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These tax credits are recognized as a reduction of tax expense or, for investments qualifying as investment tax credits, as a reduction to the related investment asset. The Company recognized federal and state income tax credits related to its affordable housing and other tax-advantaged investments in tax expense of $112 million and $110 million for the three months ended June 30, 2022 and 2021, respectively, and $225 million and $243 million for the six months ended June 30, 2022 and 2021, respectively. The Company also recognized $162 million and $123 million of investment tax credits for the three months ended June 30, 2022 and 2021, respectively, and $175 million and $160 million for the six months ended June 30, 2022 and 2021, respectively. The Company recognized $106 million of expenses related to all of these investments for both the three months ended June 30, 2022 and 2021, of which $92 million and $87 million, respectively, were included in tax expense and the remaining amounts were included in noninterest expense. The Company recognized $208 million and $232 million of expenses related to all of these investments for the six months ended June 30, 2022 and 2021, respectively, of which $183 million and $179 million, respectively, were included in tax expense and the remaining amounts were included in noninterest expense.

The Company is not required to consolidate VIEs in which it has concluded it does not have a controlling financial interest, and thus is not the primary beneficiary. In such cases, the Company does not have both the power to direct the entities’ most significant activities and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs.

The Company’s investments in these unconsolidated VIEs are carried in other assets on the Consolidated Balance Sheet. The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are generally carried in other liabilities on the Consolidated Balance Sheet. The Company’s maximum exposure to loss from these unconsolidated VIEs include the investment recorded on the Company’s Consolidated Balance Sheet, net of unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. While the Company believes potential losses from these investments are remote, the maximum exposure was determined by assuming a scenario where the community-based business and housing projects completely fail and do not meet certain government compliance requirements resulting in recapture of the related tax credits.

The following table provides a summary of investments in community development and tax-advantaged VIEs that the Company has not consolidated:

(Dollars in Millions)	June 30, 2022		December 31, 2021
Investment carrying amount	$	4,999	$	4,484
Unfunded capital and other commitments		2,210		1,890
Maximum exposure to loss		9,872		9,899

The Company also has noncontrolling financial investments in private investment funds and partnerships considered to be VIEs, which are not consolidated. The Company’s recorded investment in these entities, carried in other assets on the Consolidated Balance Sheet, was approximately $46 million at June 30, 2022 and $40 million at December 31, 2021. The maximum exposure to loss related to these VIEs was $87 million at June 30, 2022 and $84 million at December 31, 2021, representing the Company’s investment balance and its unfunded commitments to invest additional amounts.

The Company’s individual net investments in unconsolidated VIEs, which exclude any unfunded capital commitments, ranged from less than $1 million to $105 million at June 30, 2022, compared with less than $1 million to $75 million at December 31, 2021.

50 U.S. Bancorp

The Company is required to consolidate VIEs in which it has concluded it has a controlling financial interest. The Company sponsors entities to which it transfers its interests in tax-advantaged investments to third parties. At June 30, 2022, approximately $4.9 billion of the Company’s assets and $3.3 billion of its liabilities included on the Consolidated Balance Sheet were related to community development and tax-advantaged investment VIEs which the Company has consolidated, primarily related to these transfers. These amounts compared to $5.0 billion and $3.4 billion, respectively, at December 31, 2021. The majority of the assets of these consolidated VIEs are reported in other assets, and the liabilities are reported in long-term debt and other liabilities. The assets of a particular VIE are the primary source of funds to settle its obligations. The creditors of the VIEs do not have recourse to the general credit of the Company. The Company’s exposure to the consolidated VIEs is generally limited to the carrying value of its variable interests plus any related tax credits previously recognized or transferred to others with a guarantee.

In addition, the Company sponsors a municipal bond securities tender option bond program. The Company controls the activities of the program’s entities, is entitled to the residual returns and provides liquidity and remarketing arrangements to the program. As a result, the Company has consolidated the program’s entities. At June 30, 2022, $1.5 billion of available-for-sale investment securities and $1.2 billion of short-term borrowings on the Consolidated Balance Sheet were related to the tender option bond program, compared with $1.7 billion of available-for-sale investment securities and $1.2 billion of short-term borrowings at December 31, 2021.

 Note 7    Mortgage Servicing Rights

The Company capitalizes MSRs as separate assets when loans are sold and servicing is retained. MSRs may also be purchased from others. The Company carries MSRs at fair value, with changes in the fair value recorded in earnings during the period in which they occur. The Company serviced $226.4 billion of residential mortgage loans for others at June 30, 2022, and $222.4 billion at December 31, 2021, including subserviced mortgages with no corresponding MSR asset. Included in mortgage banking revenue are the MSR fair value changes arising from market rate and model assumption changes, net of the value change in derivatives used to economically hedge MSRs. These changes resulted in net gains of $13 million and net losses of $27 million for the three months ended June 30, 2022 and 2021, respectively, and net losses of $16 million and $147 million for the six months ended June 30, 2022 and 2021, respectively. Loan servicing and ancillary fees, not including valuation changes, included in mortgage banking revenue were $186 million and $178 million for the three months ended June 30, 2022 and 2021 respectively, and $371 million and $353 million for the six months ended June 30, 2022 and 2021, respectively.

Changes in fair value of capitalized MSRs are summarized as follows:

	Three Months Ended June 30						Six Months Ended June 30
(Dollars in Millions)	2022			2021			2022			2021
Balance at beginning of period	$	3,432		$	2,787		$	2,953		$	2,210
Rights purchased		3			11			6			27
Rights capitalized		102			293			339			612
Rights sold (a)		—			1			1			1
Changes in fair value of MSRs
Due to fluctuations in market interest rates (b)		289			(232	)		657			254
Due to revised assumptions or models (c)		6			(37	)		(21	)		(139	)
Other changes in fair value (d)		(125	)		(110	)		(228	)		(252	)
Balance at end of period	$	3,707		$	2,713		$	3,707		$	2,713

(a) MSRs sold include those having a negative fair value, resulting from the loans being severely delinquent.

(b) Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits.

(c) Includes changes in MSR value not caused by changes in market interest rates, such as changes in assumed cost to service, ancillary income and option adjusted spread, as well as the impact of any model changes.

(d) Primarily the change in MSR value from passage of time and cash flows realized (decay), but also includes the impact of changes to expected cash flows not associated with changes in market interest rates, such as the impact of delinquencies.

U.S. Bancorp 51

The estimated sensitivity to changes in interest rates of the fair value of the MSR portfolio and the related derivative instruments was as follows:

	June 30, 2022												December 31, 2021
(Dollars in Millions)	Down 100 bps		Down 50 bps		Down 25 bps		Up 25 bps		Up 50 bps		Up 100 bps		Down 100 bps		Down 50 bps		Down 25 bps		Up 25 bps		Up 50 bps		Up 100 bps
MSR portfolio	$	(380)	$	(172)	$	(81)	$	71	$	133	$	231	$	(636)	$	(324)	$	(160)	$	150	$	287	$	511
Derivative instrument hedges		371		170		81		(73)		(141)		(261)		614		309		152		(142)		(278)		(536)
Net sensitivity	$	(9)	$	(2)	$	—	$	(2)	$	(8)	$	(30)	$	(22)	$	(15)	$	(8)	$	8	$	9	$	(25)

The fair value of MSRs and their sensitivity to changes in interest rates is influenced by the mix of the servicing portfolio and characteristics of each segment of the portfolio. The Company’s servicing portfolio consists of the distinct portfolios of government-insured mortgages, conventional mortgages and Housing Finance Agency (“HFA”) mortgages. The servicing portfolios are predominantly comprised of fixed-rate agency loans with limited adjustable-rate or jumbo mortgage loans. The HFA servicing portfolio is comprised of loans originated under state and local housing authority program guidelines which assist purchases by first-time or low- to moderate-income homebuyers through a favorable rate subsidy, down payment and/or closing cost assistance on government- and conventional-insured mortgages.

A summary of the Company’s MSRs and related characteristics by portfolio was as follows:

	June 30, 2022												December 31, 2021
(Dollars in Millions)	HFA			Government			Conventional (d)			Total			HFA			Government			Conventional (d)			Total
Servicing portfolio (a)	$	41,701		$	21,358		$	159,657		$	222,716		$	40,652		$	21,919		$	156,382		$	218,953
Fair value	$	697		$	403		$	2,607		$	3,707		$	527		$	308		$	2,118		$	2,953
Value (bps) (b)		167			189			163			166			130			141			135			135
Weighted-average servicing fees (bps)		36			41			30			32			36			41			30			32
Multiple (value/servicing fees)		4.65			4.59			5.41			5.15			3.63			3.43			4.50			4.18
Weighted-average note rate		4.02	%		3.67	%		3.40	%		3.54	%		4.07	%		3.70	%		3.41	%		3.56	%
Weighted-average age (in years)		3.9			6.0			3.5			3.8			3.8			5.9			3.3			3.7
Weighted-average expected prepayment (constant prepayment rate)		7.5	%		8.5	%		6.5	%		6.9	%		11.5	%		13.2	%		9.6	%		10.3	%
Weighted-average expected life (in years)		8.6			7.4			8.2			8.2			6.5			5.6			6.9			6.7
Weighted-average option adjusted spread (c)		7.2	%		6.9	%		5.9	%		6.2	%		7.3	%		7.3	%		6.3	%		6.6	%

(a) Represents principal balance of mortgages having corresponding MSR asset.

(b) Calculated as fair value divided by the servicing portfolio.

(c) Option adjusted spread is the incremental spread added to the risk-free rate to reflect optionality and other risk inherent in the MSRs.

(d) Represents loans sold primarily to GSEs.

 Note 8     Preferred Stock

At June 30, 2022 and December 31, 2021, the Company had authority to issue 50 million shares of preferred stock. The number of shares issued and outstanding and the carrying amount of each outstanding series of the Company’s preferred stock were as follows:

	June 30, 2022								December 31, 2021
(Dollars in Millions)	Shares Issued and Outstanding		Liquidation Preference		Discount		Carrying Amount		Shares Issued and Outstanding		Liquidation Preference		Discount		Carrying Amount
Series A		12,510	$	1,251	$	145	$	1,106		12,510	$	1,251	$	145	$	1,106
Series B		40,000		1,000		—		1,000		40,000		1,000		—		1,000
Series J		40,000		1,000		7		993		40,000		1,000		7		993
Series K		23,000		575		10		565		23,000		575		10		565
Series L		20,000		500		14		486		20,000		500		14		486
Series M		30,000		750		21		729		30,000		750		21		729
Series N		60,000		1,500		8		1,492		60,000		1,500		8		1,492
Series O		18,000		450		13		437		—		—		—		—
Total preferred stock (a)		243,510	$	7,026	$	218	$	6,808		225,510	$	6,576	$	205	$	6,371

(a) The par value of all shares issued and outstanding at June 30, 2022 and December 31, 2021, was $1.00 per share.

During the first six months of 2022, the Company issued depositary shares representing an ownership interest in 18,000 shares of Series O Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $25,000 per share (the “Series O Preferred Stock”). The Series O Preferred Stock has no stated maturity and will not be subject to

52 U.S. Bancorp

any sinking fund or other obligation of the Company. Dividends, if declared, will accrue and be payable quarterly, in arrears, at a rate per annum equal to 4.50 percent. The Series O Preferred Stock is redeemable at the Company’s option, in whole or in part, on or after April 15, 2027. The Series O Preferred Stock is redeemable at the Company’s option, in whole, but not in part, prior to April 15, 2027 within 90 days following an official administrative or judicial decision, amendment to, or change in the laws or regulations that would not allow the Company to treat the full liquidation value of the Series O Preferred Stock as Tier 1 capital for purposes of the capital adequacy guidelines of the Federal Reserve Board.

 Note 9     Accumulated Other Comprehensive Income (Loss)

Shareholders’ equity is affected by transactions and valuations of asset and liability positions that require adjustments to accumulated other comprehensive income (loss). The reconciliation of the transactions affecting accumulated other comprehensive income (loss) included in shareholders’ equity is as follows:

Three Months Ended June 30 (Dollars in Millions)	Unrealized Gains (Losses) on Investment Securities Available-For- Sale			Unrealized Gains (Losses) on Investment Securities Transferred From Available- For-Sale to Held-To-Maturity			Unrealized Gains (Losses) on Derivative Hedges			Unrealized Gains (Losses) on Retirement Plans			Foreign Currency Translation			Total
2022
Balance at beginning of period	$	(4,518	)	$	(904	)	$	(77	)	$	(1,402	)	$	(37	)	$	(6,938	)
Changes in unrealized gains (losses)		(4,761	)		—			98			—			—			(4,663	)
Transfer of securities from available-for-sale to held-to-maturity		1,381			(1,381	)		—			—			—			—
Foreign currency translation adjustment (a)		—			—			—			—			(3	)		(3	)
Reclassification to earnings of realized (gains) losses		(19	)		61			10			32			—			84
Applicable income taxes		859			334			(27	)		(8	)		1			1,159
Balance at end of period	$	(7,058	)	$	(1,890	)	$	4		$	(1,378	)	$	(39	)	$	(10,361	)
2021
Balance at beginning of period	$	(125	)	$	—		$	(112	)	$	(1,813	)	$	(45	)	$	(2,095	)
Changes in unrealized gains (losses)		1,195			—			14			—			—			1,209
Foreign currency translation adjustment (a)		—			—			—			—			(1	)		(1	)
Reclassification to earnings of realized (gains) losses		(43	)		—			(8	)		40			—			(11	)
Applicable income taxes		(292	)		—			(1	)		(10	)		(1	)		(304	)
Balance at end of period	$	735		$	—		$	(107	)	$	(1,783	)	$	(47	)	$	(1,202	)

(a) Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges.

Six Months Ended June 30 (Dollars in Millions)	Unrealized Gains (Losses) on Investment Securities Available-For- Sale			Unrealized Gains (Losses) on Investment Securities Transferred From Available- For-Sale to Held-To-Maturity			Unrealized Gains (Losses) on Derivative Hedges			Unrealized Gains (Losses) on Retirement Plans			Foreign Currency Translation			Total
2022
Balance at beginning of period	$	540		$	(935	)	$	(85	)	$	(1,426	)	$	(37	)	$	(1,943	)
Changes in unrealized gains (losses)		(11,515	)		—			98			—			—			(11,417	)
Transfer of securities from available-for-sale to held-to-maturity		1,381			(1,381	)		—			—			—			—
Foreign currency translation adjustment (a)		—			—			—			—			(3	)		(3	)
Reclassification to earnings of realized (gains) losses		(37	)		103			21			64			—			151
Applicable income taxes		2,573			323			(30	)		(16	)		1			2,851
Balance at end of period	$	(7,058	)	$	(1,890	)	$	4		$	(1,378	)	$	(39	)	$	(10,361	)
2021
Balance at beginning of period	$	2,417		$	—		$	(189	)	$	(1,842	)	$	(64	)	$	322
Changes in unrealized gains (losses)		(2,183	)		—			113			—			—			(2,070	)
Foreign currency translation adjustment (a)		—			—			—			—			24			24
Reclassification to earnings of realized (gains) losses		(68	)		—			(4	)		79			—			7
Applicable income taxes		569			—			(27	)		(20	)		(7	)		515
Balance at end of period	$	735		$	—		$	(107	)	$	(1,783	)	$	(47	)	$	(1,202	)

(a) Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges.

U.S. Bancorp 53

Additional detail about the impact to net income for items reclassified out of accumulated other comprehensive income (loss) and into earnings is as follows:

	Impact to Net Income												Affected Line Item in the Consolidated Statement of Income
	Three Months Ended June 30						Six Months Ended June 30
(Dollars in Millions)	2022			2021			2022			2021
Unrealized gains (losses) on investment securities available-for-sale
Realized gains (losses) on sale of investment securities	$	19		$	43		$	37		$	68		Securities gains (losses), net
		(5	)		(11)			(9)			(17)		Applicable income taxes
		14			32			28			51		Net-of-tax
Unrealized gains (losses) on investment securities transferred from available-for-sale to held-to-maturity
Amortization of unrealized gains		(61	)		—			(103	)		—		Interest income
		16			—			26			—		Applicable income taxes
		(45	)		—			(77)			—		Net-of-tax
Unrealized gains (losses) on derivative hedges
Realized gains (losses) on derivative hedges		(10	)		8			(21	)		4		Interest expense
		2			(2)			5			(1)		Applicable income taxes
		(8)			6			(16)			3		Net-of-tax
Unrealized gains (losses) on retirement plans
Actuarial gains (losses) and prior service cost (credit) amortization		(32	)		(40	)		(64	)		(79	)	Other noninterest expense
		8			10			16			20		Applicable income taxes
		(24)			(30)			(48)			(59)		Net-of-tax
Total impact to net income	$	(63	)	$	8		$	(113	)	$	(5)

 Note 10    Earnings Per Share

The components of earnings per share were:

	Three Months Ended June 30						Six Months Ended June 30
(Dollars and Shares in Millions, Except Per Share Data)	2022			2021			2022			2021
Net income attributable to U.S. Bancorp	$	1,531		$	1,982		$	3,088		$	4,262
Preferred dividends		(59	)		(58	)		(143	)		(148	)
Impact of preferred stock call (a)		—			—			—			(5	)
Earnings allocated to participating stock awards		(8	)		(10	)		(15	)		(20	)
Net income applicable to U.S. Bancorp common shareholders	$	1,464		$	1,914		$	2,930		$	4,089
Average common shares outstanding		1,486			1,489			1,485			1,495
Net effect of the exercise and assumed purchase of stock awards		1			1			1			2
Average diluted common shares outstanding		1,487			1,490			1,486			1,497
Earnings per common share	$	.99		$	1.29		$	1.97		$	2.73
Diluted earnings per common share	$	.99		$	1.28		$	1.97		$	2.73

(a) Represents stock issuance costs originally recorded in preferred stock upon issuance of the Company’s Series I Preferred Stock that were reclassified to retained earnings on the date the Company announced its intent to redeem the outstanding shares.

Options outstanding at June 30, 2022, to purchase 1 million common shares for the three months and six months ended June 30, 2022, and outstanding at June 30, 2021, to purchase 1 million common shares for the six months ended June 30, 2021 were not included in the computation of diluted earnings per share because they were antidilutive.

 Note 11    Employee Benefits

The components of net periodic benefit cost for the Company’s retirement plans were:

	Three Months Ended June 30												Six Months Ended June 30
	Pension Plans						Postretirement Welfare Plan						Pension Plans						Postretirement Welfare Plan
(Dollars in Millions)	2022			2021			2022			2021			2022			2021			2022			2021
Service cost	$	68		$	66		$	—		$	—		$	137		$	132		$	—		$	—
Interest cost		62			55			—			—			123			110			—			—
Expected return on plan assets		(120	)		(113	)		—			—			(239	)		(225	)		—			—
Prior service cost (credit) amortization		—			(1	)		(2	)		(1	)		(1	)		(1	)		(2	)		(2	)
Actuarial loss (gain) amortization		35			43			(1	)		(1	)		70			85			(3	)		(3	)
Net periodic benefit cost (a)	$	45		$	50		$	(3	)	$	(2	)	$	90		$	101		$	(5	)	$	(5	)

(a) Service cost is included in employee benefits expense on the Consolidated Statement of Income. All other components are included in other noninterest expense on the Consolidated Statement of Income.

54 U.S. Bancorp

Note 12    Income Taxes

The components of income tax expense were:

	Three Months Ended June 30					Six Months Ended June 30
(Dollars in Millions)	2022			2021		2022		2021
Federal
Current	$	221		$	350	$	625	$	703
Deferred		107			76		5		206
Federal income tax		328			426		630		909
State
Current		89			109		178		203
Deferred		(3	)		16		3		46
State income tax		86			125		181		249
Total income tax provision	$	414		$	551	$	811	$	1,158

A reconciliation of expected income tax expense at the federal statutory rate of 21 percent to the Company’s applicable income tax expense follows:

	Three Months Ended June 30						Six Months Ended June 30
(Dollars in Millions)	2022			2021			2022			2021
Tax at statutory rate	$	409		$	533		$	820		$	1,140
State income tax, at statutory rates, net of federal tax benefit		84			105			168			219
Tax effect of
Tax credits and benefits, net of related expenses		(46	)		(83	)		(152	)		(176	)
Tax-exempt income		(29	)		(29	)		(57	)		(57	)
Other items		(4	)		25			32			32
Applicable income taxes	$	414		$	551		$	811		$	1,158

The Company’s income tax returns are subject to review and examination by federal, state, local and foreign government authorities. On an ongoing basis, numerous federal, state, local and foreign examinations are in progress and cover multiple tax years. As of June 30, 2022, federal tax examinations for all years ending through December 31, 2014 are completed and resolved. The Company’s tax returns for the years ended December 31, 2015 through December 31, 2020 are under examination by the Internal Revenue Service. The years open to examination by foreign, state and local government authorities vary by jurisdiction.

The Company’s net deferred tax asset was $3.6 billion at June 30, 2022 and $785 million at December 31, 2021.

 Note 13    Derivative Instruments

In the ordinary course of business, the Company enters into derivative transactions to manage various risks and to accommodate the business requirements of its customers. The Company recognizes all derivatives on the Consolidated Balance Sheet at fair value in other assets or in other liabilities. On the date the Company enters into a derivative contract, the derivative is designated as either a fair value hedge, cash flow hedge, net investment hedge, or a designation is not made as it is a customer-related transaction, an economic hedge for asset/liability risk management purposes or another stand-alone derivative created through the Company’s operations (“free-standing derivative”). When a derivative is designated as a fair value, cash flow or net investment hedge, the Company performs an assessment, at inception and, at a minimum, quarterly thereafter, to determine the effectiveness of the derivative in offsetting changes in the value or cash flows of the hedged item(s).

Fair Value Hedges These derivatives are interest rate swaps the Company uses to hedge the change in fair value related to interest rate changes of its underlying available-for-sale investment securities and fixed-rate debt. Changes in the fair value of derivatives designated as fair value hedges, and changes in the fair value of the hedged items, are recorded in earnings.

Cash Flow Hedges These derivatives are interest rate swaps the Company uses to hedge the forecasted cash flows from its underlying variable-rate loans and debt. Changes in the fair value of derivatives designated as cash flow hedges are recorded in other comprehensive income (loss) until the cash flows of the hedged items are realized. If a derivative designated as a cash flow hedge is terminated or ceases to be highly effective, the gain or loss in other comprehensive income (loss) is amortized to earnings over the period the forecasted hedged transactions impact earnings. If a hedged

U.S. Bancorp 55

forecasted transaction is no longer probable, hedge accounting is ceased and any gain or loss included in other comprehensive income (loss) is reported in earnings immediately, unless the forecasted transaction is at least reasonably possible of occurring, whereby the amounts remain within other comprehensive income (loss). At June 30, 2022, the Company had $4 million (net-of-tax) of realized and unrealized gains on derivatives classified as cash flow hedges recorded in other comprehensive income (loss), compared with $85 million (net-of-tax) of realized and unrealized losses at December 31, 2021. The estimated amount to be reclassified from other comprehensive income (loss) into earnings during the next 12 months is a loss of $15 million (net-of-tax). All cash flow hedges were highly effective for the three months ended June 30, 2022. There were no derivatives held as cash flow hedges at December 31, 2021.

Net Investment Hedges The Company uses forward commitments to sell specified amounts of certain foreign currencies, and non-derivative debt instruments, to hedge the volatility of its net investment in foreign operations driven by fluctuations in foreign currency exchange rates. The carrying amount of non-derivative debt instruments designated as net investment hedges was $1.2 billion at June 30, 2022, compared with $1.3 billion at December 31, 2021.

Other Derivative Positions The Company enters into free-standing derivatives to mitigate interest rate risk and for other risk management purposes. These derivatives include forward commitments to sell to-be-announced securities (“TBAs”) and other commitments to sell residential mortgage loans, which are used to economically hedge the interest rate risk related to mortgage loans held for sale (“MLHFS”) and unfunded mortgage loan commitments. The Company also enters into interest rate swaps, swaptions, forward commitments to buy TBAs, U.S. Treasury and Eurodollar futures and options on U.S. Treasury futures to economically hedge the change in the fair value of the Company’s MSRs. The Company also enters into foreign currency forwards to economically hedge remeasurement gains and losses the Company recognizes on foreign currency denominated assets and liabilities. In addition, the Company acts as a seller and buyer of interest rate derivatives and foreign exchange contracts for its customers. The Company mitigates the market and liquidity risk associated with these customer derivatives by entering into similar offsetting positions with broker-dealers, or on a portfolio basis by entering into other derivative or non-derivative financial instruments that partially or fully offset the exposure to earnings from these customer-related positions. The Company’s customer derivatives and related hedges are monitored and reviewed by the Company’s Market Risk Committee, which establishes policies for market risk management, including exposure limits for each portfolio. The Company also has derivative contracts that are created through its operations, including certain unfunded mortgage loan commitments and swap agreements related to the sale of a portion of its Class B common and preferred shares of Visa Inc. Refer to Note 15 for further information on these swap agreements.

The following table summarizes the asset and liability management derivative positions of the Company:

	June 30, 2022						December 31, 2021
	Notional Value		Fair Value				Notional Value		Fair Value
(Dollars in Millions)			Assets		Liabilities				Assets		Liabilities
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	17,400	$	—	$	—	$	12,350	$	—	$	—
Pay fixed/receive floating swaps		3,820		—		—		16,650		—		—
Cash flow hedges
Interest rate contracts
Receive fixed/pay floating swaps		8,300		—		—		—		—		—
Net investment hedges
Foreign exchange forward contracts		805		6		1		793		—		4
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		11,040		30		63		9,322		10		16
Sell		9,811		34		31		29,348		25		27
Options
Purchased		7,480		260		—		18,570		256		—
Written		7,208		20		93		9,662		52		231
Receive fixed/pay floating swaps		11,420		—		—		9,653		—		—
Pay fixed/receive floating swaps		12,481		—		—		7,033		—		—
Foreign exchange forward contracts		852		5		2		735		2		6
Equity contracts		186		4		—		209		5		—
Other (a)		2,344		2		81		1,792		—		125
Total	$	93,147	$	361	$	271	$	116,117	$	350	$	409

(a) Includes derivative liability swap agreements related to the sale of a portion of the Company’s Class B common and preferred shares of Visa Inc. The Visa swap agreements had a total notional value and fair value of $1.8 billion and $79 million at June 30, 2022, respectively, compared to $1.8 billion and $125 million at December 31, 2021, respectively. In addition, includes short-term underwriting purchase and sale commitments with total notional values of $565 million at June 30, 2022, and $8 million at December 31, 2021.

56 U.S. Bancorp

The following table summarizes the customer-related derivative positions of the Company:

	June 30, 2022						December 31, 2021
	Notional Value		Fair Value				Notional Value		Fair Value
(Dollars in Millions)			Assets		Liabilities				Assets		Liabilities
Interest rate contracts
Receive fixed/pay floating swaps	$	204,454	$	458	$	3,125	$	178,701	$	2,007	$	438
Pay fixed/receive floating swaps		193,869		1,308		214		174,176		134		670
Other (a)		19,451		1		3		16,267		1		2
Options
Purchased		90,183		993		5		89,679		194		36
Written		87,585		6		979		85,211		36		176
Futures
Buy		475		—		—		3,607		—		—
Sell		4,928		—		—		3,941		—		—
Foreign exchange rate contracts
Forwards, spots and swaps		95,611		2,222		2,239		89,321		1,145		1,143
Options
Purchased		861		39		—		805		19		—
Written		861		—		39		805		—		19
Credit contracts		9,152		1		6		9,331		1		5
Total	$	707,430	$	5,028	$	6,610	$	651,844	$	3,537	$	2,489

(a) Primarily represents floating rate interest rate swaps that pay based on differentials between specified interest rate indexes.

The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax):

	Three Months Ended June 30										Six Months Ended June 30
	Gains (Losses) Recognized in Other Comprehensive Income (Loss)					Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings					Gains (Losses) Recognized in Other Comprehensive Income (Loss)					Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
(Dollars in Millions)	2022		2021			2022			2021		2022		2021			2022			2021
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts	$	73	$	11		$	(8	)	$	6	$	73	$	85		$	(16	)	$	3
Net investment hedges
Foreign exchange forward contracts		27		(8	)		—			—		26		(1	)		—			—
Non-derivative debt instruments		63		(14	)		—			—		83		34			—			—

Note: The Company does not exclude components from effectiveness testing for cash flow and net investment hedges.

The table below shows the effect of fair value and cash flow hedge accounting on the Consolidated Statement of Income:

	Three Months Ended June 30												Six Months Ended June 30
	Interest Income						Interest Expense						Interest Income						Interest Expense
(Dollars in Millions)	2022			2021			2022			2021			2022			2021			2022			2021
Total amount of income and expense line items presented in the Consolidated Statement of Income in which the effects of fair value or cash flow hedges are recorded	$	3,825		$	3,382		$	390		$	245		$	7,243		$	6,723		$	635		$	523
Asset and Liability Management Positions
Fair value hedges
Interest rate contract derivatives		(186	)		(30	)		(38	)		18			331			(31	)		34			73
Hedged items		187			29			36			(17	)		(331	)		30			(35	)		(72	)
Cash flow hedges
Interest rate contract derivatives		—			—			10			(8	)		—			—			21			(4	)

Note: The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company reclassified losses of $10 million and $21 million into earnings during the three and six months ended June 30, 2022, respectively, as a result of realized cash flows on discontinued cash flow hedges, compared with $12 million and $27 million during the three and six months ended June 30, 2021, respectively. No amounts were reclassified into earnings on discontinued cash flow hedges because it is probable the original hedged forecasted cash flows will not occur.

U.S. Bancorp 57

The table below shows cumulative hedging adjustments and the carrying amount of assets and liabilities designated in fair value hedges:

	Carrying Amount of the Hedged Assets and Liabilities				Cumulative Hedging Adjustment (a)
At December 31 (Dollars in Millions)	June 30, 2022		December 31, 2021		June 30, 2022			December 31, 2021
Line Item in the Consolidated Balance Sheet
Available-for-sale investment securities	$	3,124	$	16,445	$	(716	)	$	(26	)
Long-term debt		17,724		12,278		378			585

(a) The cumulative hedging adjustment related to discontinued hedging relationships on available-for-sale investment securities and long-term debt was $(365) million and $468 million, respectively, at June 30, 2022, compared with $(6) million and $640 million at December 31, 2021, respectively.

The table below shows the gains (losses) recognized in earnings for other economic hedges and the customer-related positions:

	Location of Gains (Losses) Recognized in Earnings		Three Months Ended June 30						Six Months Ended June 30
(Dollars in Millions)			2022			2021			2022			2021
Asset and Liability Management Positions
Other economic hedges
Interest rate contracts
Futures and forwards		Mortgage banking revenue	$	74		$	(99	)	$	297		$	331
Purchased and written options		Mortgage banking revenue		6			253			(41	)		265
Swaps		Mortgage banking revenue		(247	)		193			(451	)		(197	)
Foreign exchange forward contracts		Other noninterest income		4			(7	)		1			(10	)
Equity contracts		Compensation expense		(1	)		1			(3	)		5
Other		Other noninterest income		1			1			—			1
Customer-Related Positions
Interest rate contracts
Swaps		Commercial products revenue		30			25			47			52
Purchased and written options		Commercial products revenue		—			4			4			(3	)
Futures		Commercial products revenue		8			—			24			—
Foreign exchange rate contracts
Forwards, spots and swaps		Commercial products revenue		20			27			35			46
Purchased and written options		Commercial products revenue		1			—			1			—
Credit contracts		Commercial products revenue		17			(4	)		22			(2	)

Derivatives are subject to credit risk associated with counterparties to the derivative contracts. The Company measures that credit risk using a credit valuation adjustment and includes it within the fair value of the derivative. The Company manages counterparty credit risk through diversification of its derivative positions among various counterparties, by entering into derivative positions that are centrally cleared through clearinghouses, by entering into master netting arrangements and, where possible, by requiring collateral arrangements. A master netting arrangement allows two counterparties, who have multiple derivative contracts with each other, the ability to net settle amounts under all contracts, including any related collateral, through a single payment and in a single currency. Collateral arrangements generally require the counterparty to deliver collateral (typically cash or U.S. Treasury and agency securities) equal to the Company’s net derivative receivable, subject to minimum transfer and credit rating requirements.

The Company’s collateral arrangements are predominately bilateral and, therefore, contain provisions that require collateralization of the Company’s net liability derivative positions. Required collateral coverage is based on net liability thresholds and may be contingent upon the Company’s credit rating from two of the nationally recognized statistical rating organizations. If the Company’s credit rating were to fall below credit ratings thresholds established in the collateral arrangements, the counterparties to the derivatives could request immediate additional collateral coverage up to and including full collateral coverage for derivatives in a net liability position. The aggregate fair value of all derivatives under collateral arrangements that were in a net liability position at June 30, 2022, was $1.5 billion. At June 30, 2022, the Company had $1.2 billion of cash posted as collateral against this net liability position.

 Note 14 Netting Arrangements for Certain Financial Instruments and Securities Financing Activities

The Company’s derivative portfolio consists of bilateral over-the-counter trades, certain interest rate derivatives and credit contracts required to be centrally cleared through clearinghouses per current regulations, and exchange-traded positions which may include U.S. Treasury and Eurodollar futures or options on U.S. Treasury futures. Of the Company’s $800.6 billion total notional amount of derivative positions at June 30, 2022, $409.7 billion related to

58 U.S. Bancorp

bilateral over-the-counter trades, $383.9 billion related to those centrally cleared through clearinghouses and $7.0 billion related to those that were exchange-traded. The Company’s derivative contracts typically include offsetting rights (referred to as netting arrangements), and depending on expected volume, credit risk, and counterparty preference, collateral maintenance may be required. For all derivatives under collateral support arrangements, fair value is determined daily and, depending on the collateral maintenance requirements, the Company and a counterparty may receive or deliver collateral, based upon the net fair value of all derivative positions between the Company and the counterparty. Collateral is typically cash, but securities may be allowed under collateral arrangements with certain counterparties. Receivables and payables related to cash collateral are included in other assets and other liabilities on the Consolidated Balance Sheet, along with the related derivative asset and liability fair values. Any securities pledged to counterparties as collateral remain on the Consolidated Balance Sheet. Securities received from counterparties as collateral are not recognized on the Consolidated Balance Sheet, unless the counterparty defaults. In general, securities used as collateral can be sold, repledged or otherwise used by the party in possession. No restrictions exist on the use of cash collateral by either party. Refer to Note 13 for further discussion of the Company’s derivatives, including collateral arrangements.

As part of the Company’s treasury and broker-dealer operations, the Company executes transactions that are treated as securities sold under agreements to repurchase or securities purchased under agreements to resell, both of which are accounted for as collateralized financings. Securities sold under agreements to repurchase include repurchase agreements and securities loaned transactions. Securities purchased under agreements to resell include reverse repurchase agreements and securities borrowed transactions. For securities sold under agreements to repurchase, the Company records a liability for the cash received, which is included in short-term borrowings on the Consolidated Balance Sheet. For securities purchased under agreements to resell, the Company records a receivable for the cash paid, which is included in other assets on the Consolidated Balance Sheet.

Securities transferred to counterparties under repurchase agreements and securities loaned transactions continue to be recognized on the Consolidated Balance Sheet, are measured at fair value, and are included in investment securities or other assets. Securities received from counterparties under reverse repurchase agreements and securities borrowed transactions are not recognized on the Consolidated Balance Sheet unless the counterparty defaults. The securities transferred under repurchase and reverse repurchase transactions typically are U.S. Treasury and agency securities, residential agency mortgage-backed securities or corporate debt securities. The securities loaned or borrowed typically are corporate debt securities traded by the Company’s broker-dealer subsidiary. In general, the securities transferred can be sold, repledged or otherwise used by the party in possession. No restrictions exist on the use of cash collateral by either party. Repurchase/reverse repurchase and securities loaned/borrowed transactions expose the Company to counterparty risk. The Company manages this risk by performing assessments, independent of business line managers, and establishing concentration limits on each counterparty. Additionally, these transactions include collateral arrangements that require the fair values of the underlying securities to be determined daily, resulting in cash being obtained or refunded to counterparties to maintain specified collateral levels.

U.S. Bancorp 59

The following table summarizes the maturities by category of collateral pledged for repurchase agreements and securities loaned transactions:

(Dollars in Millions)	Overnight and Continuous		Less Than 30 Days		30-89 Days		Greater Than 90 Days		Total
June 30, 2022
Repurchase agreements
U.S. Treasury and agencies	$	429	$	–	$	–	$	–	$	429
Residential agency mortgage-backed securities		969		–		–		–		969
Corporate debt securities		597		–		–		–		597
Total repurchase agreements		1,995		–		–		–		1,995
Securities loaned
Corporate debt securities		225		–		–		–		225
Total securities loaned		225		–		–		–		225
Gross amount of recognized liabilities	$	2,220	$	–	$	–	$	–	$	2,220
December 31, 2021
Repurchase agreements
U.S. Treasury and agencies	$	378	$	–	$	–	$	–	$	378
Residential agency mortgage-backed securities		551		–		–		–		551
Corporate debt securities		646		–		–		–		646
Total repurchase agreements		1,575		–		–		–		1,575
Securities loaned
Corporate debt securities		169		–		–		–		169
Total securities loaned		169		–		–		–		169
Gross amount of recognized liabilities	$	1,744	$	–	$	–	$	–	$	1,744

The Company executes its derivative, repurchase/reverse repurchase and securities loaned/borrowed transactions under the respective industry standard agreements. These agreements include master netting arrangements that allow for multiple contracts executed with the same counterparty to be viewed as a single arrangement. This allows for net settlement of a single amount on a daily basis. In the event of default, the master netting arrangement provides for close-out netting, which allows all of these positions with the defaulting counterparty to be terminated and net settled with a single payment amount.

The Company has elected to offset the assets and liabilities under netting arrangements for the balance sheet presentation of the majority of its derivative counterparties. The netting occurs at the counterparty level, and includes all assets and liabilities related to the derivative contracts, including those associated with cash collateral received or delivered. The Company has not elected to offset the assets and liabilities under netting arrangements for the balance sheet presentation of repurchase/reverse repurchase and securities loaned/borrowed transactions.

The following tables provide information on the Company’s netting adjustments, and items not offset on the Consolidated Balance Sheet but available for offset in the event of default:

(Dollars in Millions)	Gross Recognized Assets		Gross Amounts Offset on the Consolidated Balance Sheet (a)			Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet						Net Amount
								Financial Instruments (b)			Collateral Received (c)
June 30, 2022
Derivative assets (d)	$	5,359	$	(3,503	)	$	1,856	$	(175	)	$	(66	)	$	1,615
Reverse repurchase agreements		513		–			513		(386	)		(127	)		–
Securities borrowed		1,657		–			1,657		–			(1,609	)		48
Total	$	7,529	$	(3,503	)	$	4,026	$	(561	)	$	(1,802	)	$	1,663
December 31, 2021
Derivative assets (d)	$	3,830	$	(1,609	)	$	2,221	$	(142	)	$	(106	)	$	1,973
Reverse repurchase agreements		359		–			359		(249	)		(110	)		–
Securities borrowed		1,868		–			1,868		–			(1,818	)		50
Total	$	6,057	$	(1,609	)	$	4,448	$	(391	)	$	(2,034	)	$	2,023

(a) Includes $2.0 billion and $528 million of cash collateral related payables that were netted against derivative assets at June 30, 2022 and December 31, 2021, respectively.

(b) For derivative assets this includes any derivative liability fair values that could be offset in the event of counterparty default; for reverse repurchase agreements this includes any repurchase agreement payables that could be offset in the event of counterparty default; for securities borrowed this includes any securities loaned payables that could be offset in the event of counterparty default.

(c) Includes the fair value of securities received by the Company from the counterparty. These securities are not included on the Consolidated Balance Sheet unless the counterparty defaults.

(d) Excludes $30 million and $57 million at June 30, 2022 and December 31, 2021, respectively, of derivative assets not subject to netting arrangements.

60 U.S. Bancorp

(Dollars in Millions)	Gross Recognized Liabilities		Gross Amounts Offset on the Consolidated Balance Sheet (a)			Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet
								Financial Instruments (b)			Collateral Pledged (c)			Net Amount
June 30, 2022
Derivative liabilities (d)	$	6,771	$	(2,639	)	$	4,132	$	(175	)	$	–		$	3,957
Repurchase agreements		1,995		–			1,995		(386	)		(1,609	)		–
Securities loaned		225		–			225		–			(223	)		2
Total	$	8,991	$	(2,639	)	$	6,352	$	(561	)	$	(1,832	)	$	3,959
December 31, 2021
Derivative liabilities (d)	$	2,761	$	(1,589	)	$	1,172	$	(142	)	$	–		$	1,030
Repurchase agreements		1,575		–			1,575		(249	)		(1,326	)		–
Securities loaned		169		–			169		–			(167	)		2
Total	$	4,505	$	(1,589	)	$	2,916	$	(391	)	$	(1,493	)	$	1,032

(a) Includes $1.2 billion and $508 million of cash collateral related receivables that were netted against derivative liabilities at June 30, 2022 and December 31, 2021, respectively.

(b) For derivative liabilities this includes any derivative asset fair values that could be offset in the event of counterparty default; for repurchase agreements this includes any reverse repurchase agreement receivables that could be offset in the event of counterparty default; for securities loaned this includes any securities borrowed receivables that could be offset in the event of counterparty default.

(c) Includes the fair value of securities pledged by the Company to the counterparty. These securities are included on the Consolidated Balance Sheet unless the Company defaults.    

(d) Excludes $110 million and $137 million at June 30, 2022 and December 31, 2021, respectively, of derivative liabilities not subject to netting arrangements.

 Note 15    Fair Values of Assets and Liabilities

The Company uses fair value measurements for the initial recording of certain assets and liabilities, periodic remeasurement of certain assets and liabilities, and disclosures. Derivatives, trading and available-for-sale investment securities, MSRs and substantially all MLHFS are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as loans held for sale, loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-fair value accounting or impairment write-downs of individual assets.

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value measurement reflects all of the assumptions that market participants would use in pricing the asset or liability, including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset and the risk of nonperformance.

The Company groups its assets and liabilities measured at fair value into a three-level hierarchy for valuation techniques used to measure financial assets and financial liabilities at fair value. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are:

• Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 1 includes U.S. Treasury securities, as well as exchange-traded instruments.

• Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 includes debt securities that are traded less frequently than exchange-traded instruments and which are typically valued using third party pricing services; derivative contracts and other assets and liabilities, including securities, whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data; and MLHFS whose values are determined using quoted prices for similar assets or pricing models with inputs that are observable in the market or can be corroborated by observable market data.

• Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category includes MSRs and certain derivative contracts.

U.S. Bancorp 61

Valuation Methodologies

The valuation methodologies used by the Company to measure financial assets and liabilities at fair value are described below. In addition, the following section includes an indication of the level of the fair value hierarchy in which the assets or liabilities are classified. Where appropriate, the descriptions include information about the valuation models and key inputs to those models. During the six months ended June 30, 2022 and 2021, there were no significant changes to the valuation techniques used by the Company to measure fair value.

Available-For-Sale Investment Securities When quoted market prices for identical securities are available in an active market, these prices are used to determine fair value and these securities are classified within Level 1 of the fair value hierarchy. Level 1 investment securities include U.S. Treasury and exchange-traded securities.

For other securities, quoted market prices may not be readily available for the specific securities. When possible, the Company determines fair value based on market observable information, including quoted market prices for similar securities, inactive transaction prices, and broker quotes. These securities are classified within Level 2 of the fair value hierarchy. Level 2 valuations are generally provided by a third-party pricing service. Level 2 investment securities are predominantly agency mortgage-backed securities, certain other asset-backed securities, obligations of state and political subdivisions and agency debt securities.

Mortgage Loans Held For Sale MLHFS measured at fair value, for which an active secondary market and readily available market prices exist, are initially valued at the transaction price and are subsequently valued by comparison to instruments with similar collateral and risk profiles. MLHFS are classified within Level 2. Included in mortgage banking revenue was a net loss of $64 million and a net gain of $98 million for the three months ended June 30, 2022 and 2021, respectively, and net losses of $298 million and $117 million for the six months ended June 30, 2022 and 2021, respectively, from the changes to fair value of these MLHFS under fair value option accounting guidance. Changes in fair value due to instrument specific credit risk were immaterial. Interest income for MLHFS is measured based on contractual interest rates and reported as interest income on the Consolidated Statement of Income. Electing to measure MLHFS at fair value reduces certain timing differences and better matches changes in fair value of these assets with changes in the value of the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting.

Mortgage Servicing Rights MSRs are valued using a discounted cash flow methodology, and are classified within Level 3. The Company determines fair value of the MSRs by projecting future cash flows for different interest rate scenarios using prepayment rates and other assumptions, and discounts these cash flows using a risk adjusted rate based on option adjusted spread levels. There is minimal observable market activity for MSRs on comparable portfolios and, therefore, the determination of fair value requires significant management judgment. Refer to Note 7 for further information on MSR valuation assumptions.

Derivatives The majority of derivatives held by the Company are executed over-the-counter or centrally cleared through clearinghouses and are valued using market standard cash flow valuation techniques. The models incorporate inputs, depending on the type of derivative, including interest rate curves, foreign exchange rates and volatility. All derivative values incorporate an assessment of the risk of counterparty nonperformance, measured based on the Company’s evaluation of credit risk including external assessments of credit risk. The Company monitors and manages its nonperformance risk by considering its ability to net derivative positions under master netting arrangements, as well as collateral received or provided under collateral arrangements. Accordingly, the Company has elected to measure the fair value of derivatives, at a counterparty level, on a net basis. The majority of the derivatives are classified within Level 2 of the fair value hierarchy, as the significant inputs to the models, including nonperformance risk, are observable. However, certain derivative transactions are with counterparties where risk of nonperformance cannot be observed in the market and, therefore, the credit valuation adjustments result in these derivatives being classified within Level 3 of the fair value hierarchy.

The Company also has other derivative contracts that are created through its operations, including commitments to purchase and originate mortgage loans and swap agreements executed in conjunction with the sale of a portion of its Class B common and preferred shares of Visa Inc. (the “Visa swaps”). The mortgage loan commitments are valued by pricing models that include market observable and unobservable inputs, which result in the commitments being classified within Level 3 of the fair value hierarchy. The unobservable inputs include assumptions about the percentage of commitments that actually become a closed loan and the MSR value that is inherent in the underlying loan value.

62 U.S. Bancorp

The Visa swaps require payments by either the Company or the purchaser of the Visa Inc. Class B common and preferred shares when there are changes in the conversion rate of the Visa Inc. Class B common and preferred shares to Visa Inc. Class A common and preferred shares, respectively, as well as quarterly payments to the purchaser based on specified terms of the agreements. Management reviews and updates the Visa swaps fair value in conjunction with its review of Visa Inc. related litigation contingencies, and the associated escrow funding. The expected litigation resolution impacts the Visa Inc. Class B common share to Visa Inc. Class A common share conversion rate, as well as the ultimate termination date for the Visa swaps. Accordingly, the Visa swaps are classified within Level 3. Refer to Note 16 for further information on the Visa Inc. restructuring and related card association litigation.

Significant Unobservable Inputs of Level 3 Assets and Liabilities

The following section provides information to facilitate an understanding of the uncertainty in the fair value measurements for the Company’s Level 3 assets and liabilities recorded at fair value on the Consolidated Balance Sheet. This section includes a description of the significant inputs used by the Company and a description of any interrelationships between these inputs. The discussion below excludes nonrecurring fair value measurements of collateral value used for impairment measures for loans and OREO. These valuations utilize third party appraisal or broker price opinions, and are classified as Level 3 due to the significant judgment involved.

Mortgage Servicing Rights The significant unobservable inputs used in the fair value measurement of the Company’s MSRs are expected prepayments and the option adjusted spread that is added to the risk-free rate to discount projected cash flows. Significant increases in either of these inputs in isolation would have resulted in a significantly lower fair value measurement. Significant decreases in either of these inputs in isolation would have resulted in a significantly higher fair value measurement. There is no direct interrelationship between prepayments and option adjusted spread. Prepayment rates generally move in the opposite direction of market interest rates. Option adjusted spread is generally impacted by changes in market return requirements.

The following table shows the significant valuation assumption ranges for MSRs at June 30, 2022:

	Minimum			Maximum			Weighted- Average (a)
Expected prepayment		5	%		10	%		7	%
Option adjusted spread		5			11			6

(a) Determined based on the relative fair value of the related mortgage loans serviced.

Derivatives The Company has two distinct Level 3 derivative portfolios: (i) the Company’s commitments to purchase and originate mortgage loans that meet the requirements of a derivative and (ii) the Company’s asset/liability and customer-related derivatives that are Level 3 due to unobservable inputs related to measurement of risk of nonperformance by the counterparty. In addition, the Company’s Visa swaps are classified within Level 3.

The significant unobservable inputs used in the fair value measurement of the Company’s derivative commitments to purchase and originate mortgage loans are the percentage of commitments that actually become a closed loan and the MSR value that is inherent in the underlying loan value. A significant increase in the rate of loans that close would have resulted in a larger derivative asset or liability. A significant increase in the inherent MSR value would have resulted in an increase in the derivative asset or a reduction in the derivative liability. Expected loan close rates and the inherent MSR values are directly impacted by changes in market rates and will generally move in the same direction as interest rates.

The following table shows the significant valuation assumption ranges for the Company’s derivative commitments to purchase and originate mortgage loans at June 30, 2022:

	Minimum			Maximum			Weighted- Average (a)
Expected loan close rate		29	%		100	%		80	%
Inherent MSR value (basis points per loan)		37			219			108

(a) Determined based on the relative fair value of the related mortgage loans.

The significant unobservable input used in the fair value measurement of certain of the Company’s asset/liability and customer-related derivatives is the credit valuation adjustment related to the risk of counterparty nonperformance.

U.S. Bancorp 63

A significant increase in the credit valuation adjustment would have resulted in a lower fair value measurement. A significant decrease in the credit valuation adjustment would have resulted in a higher fair value measurement. The credit valuation adjustment is impacted by changes in market rates, volatility, market implied credit spreads, and loss recovery rates, as well as the Company’s assessment of the counterparty’s credit position. At June 30, 2022, the minimum, maximum and weighted-average credit valuation adjustment as a percentage of the net fair value of the counterparty’s derivative contracts prior to adjustment was 0 percent, 158 percent and 2 percent, respectively.

The significant unobservable inputs used in the fair value measurement of the Visa swaps are management’s estimate of the probability of certain litigation scenarios occurring, and the timing of the resolution of the related litigation loss estimates in excess, or shortfall, of the Company’s proportional share of escrow funds. An increase in the loss estimate or a delay in the resolution of the related litigation would have resulted in an increase in the derivative liability. A decrease in the loss estimate or an acceleration of the resolution of the related litigation would have resulted in a decrease in the derivative liability.

The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis:

(Dollars in Millions)	Level 1		Level 2		Level 3		Netting			Total
June 30, 2022
Available-for-sale securities
U.S. Treasury and agencies	$	18,539	$	5,228	$	–	$	–		$	23,767
Mortgage-backed securities
Residential agency		–		57,752		–		–			57,752
Commercial agency		–		7,564		–		–			7,564
Obligations of state and political subdivisions		–		9,715		1		–			9,716
Other		–		7		–		–			7
Total available-for-sale		18,539		80,266		1		–			98,806
Mortgage loans held for sale		–		2,773		–		–			2,773
Mortgage servicing rights		–		–		3,707		–			3,707
Derivative assets		–		4,555		834		(3,503	)		1,886
Other assets		187		1,830		–		–			2,017
Total	$	18,726	$	89,424	$	4,542	$	(3,503	)	$	109,189
Derivative liabilities	$	–	$	3,872	$	3,009	$	(2,639	)	$	4,242
Short-term borrowings and other liabilities (a)		190		1,645		–		–			1,835
Total	$	190	$	5,517	$	3,009	$	(2,639	)	$	6,077
December 31, 2021
Available-for-sale securities
U.S. Treasury and agencies	$	30,917	$	5,692	$	–	$	–		$	36,609
Mortgage-backed securities
Residential agency		–		77,079		–		–			77,079
Commercial agency		–		8,485		–		–			8,485
Asset-backed securities		–		59		7		–			66
Obligations of state and political subdivisions		–		10,716		1		–			10,717
Other		–		7		–		–			7
Total available-for-sale		30,917		102,038		8		–			132,963
Mortgage loans held for sale		–		6,623		–		–			6,623
Mortgage servicing rights		–		–		2,953		–			2,953
Derivative assets		8		2,490		1,389		(1,609	)		2,278
Other assets		278		1,921		—		—			2,199
Total	$	31,203	$	113,072	$	4,350	$	(1,609	)	$	147,016
Derivative liabilities	$	—	$	2,308	$	590	$	(1,589	)	$	1,309
Short-term borrowings and other liabilities (a)		209		1,837		—		—			2,046
Total	$	209	$	4,145	$	590	$	(1,589	)	$	3,355

Note: Excluded from the table above are equity investments without readily determinable fair values. The Company has elected to carry these investments at historical cost, adjusted for impairment and any changes resulting from observable price changes for identical or similar investments of the issuer. The aggregate carrying amount of these equity investments was $80 million and $79 million at June 30, 2022 and December 31, 2021, respectively. The Company has not recorded impairments or adjustments for observable price changes on these equity investments during the first six months of 2022 and 2021, or on a cumulative basis.

(a) Primarily represents the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.

64 U.S. Bancorp

The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended June 30:

(Dollars in Millions)	Beginning of Period Balance			Net Gains (Losses) Included in Net Income			Net Gains (Losses) Included in Other Comprehensive Income (Loss)		Purchases		Sales			Issuances			Settlements			End of Period Balance			Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period
2022
Available-for-sale securities
Asset-backed securities	$	7		$	(3	)	$	–	$	–	$	(4	)	$	–		$	–		$	–		$	–
Obligations of state and political subdivisions		1			–			–		–		–			–			–			1			–
Total available-for-sale		8			(3	)		–		–		(4	)		–			–			1			–
Mortgage servicing rights		3,432			170	(a)		–		3		–			102	(c)		–			3,707			170	(a)
Net derivative assets and liabilities		(1,011	)		(1,494	) (b)		–		81		–			–			249			(2,175	)		(1,259	) (d)
2021
Available-for-sale securities
Asset-backed securities	$	7		$	–		$	1	$	–	$	–		$	–		$	–		$	8		$	1
Obligations of state and political subdivisions		1			–			–		–		–			–			–			1			–
Total available-for-sale		8			–			1		–		–			–			–			9			1
Mortgage servicing rights		2,787			(379	) (a)		–		11		1			293	(c)		–			2,713			(379	) (a)
Net derivative assets and liabilities		1,156			556	(e)		–		58		(1	)		–			(269	)		1,500			412	(f)

(a) Included in mortgage banking revenue.     

(b) Approximately $(20) million, $(1.5) billion and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.

(c) Represents MSRs capitalized during the period.     

(d) Approximately $(3) million, $(1.3) billion and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.

(e) Approximately $276 million, $279 million and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.

(f) Approximately $100 million, $311 million and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.

The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30:

(Dollars in Millions)	Beginning of Period Balance		Net Gains (Losses) Included in Net Income			Net Gains (Losses) Included in Other Comprehensive Income (Loss)		Purchases		Sales			Issuances			Settlements			End of Period Balance			Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period
2022
Available-for-sale securities
Asset-backed securities	$	7	$	(3	)	$	–	$	–	$	(4	)	$	–		$	–		$	–		$	–
Obligations of state and political subdivisions		1		–			–		–		–			–			–			1			–
Total available-for-sale		8		(3	)		–		–		(4	)		–			–			1			–
Mortgage servicing rights		2,953		408	(a)		–		6		1			339	(c)		–			3,707			408	(a)
Net derivative assets and liabilities		799		(3,361	) (b)		–		92		(1	)		–			296			(2,175	)		(2,739	) (d)
2021
Available-for-sale securities
Asset-backed securities	$	7	$	–		$	1	$	–	$	–		$	–		$	–		$	8		$	1
Obligations of state and political subdivisions		1		–			–		–		–			–			–			1			–
Total available-for-sale		8		–			1		–		–			–			–			9			1
Mortgage servicing rights		2,210		(137	) (a)		–		27		1			612	(c)		–			2,713			(137	) (a)
Net derivative assets and liabilities		2,326		(379	) (e)		–		60		(1	)		–			(506	)		1,500			(496	) (f)

(a) Included in mortgage banking revenue.     

(b) Approximately $(103) million and $(3.3) billion included in mortgage banking revenue and commercial products revenue, respectively.

(c) Represents MSRs capitalized during the period.     

(d) Approximately $(3) million and $(2.7) billion included in mortgage banking revenue and commercial products revenue, respectively.

(e) Approximately $336 million, $(716) million and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.

(f) Approximately $100 million, $(597) million and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.

The Company is also required periodically to measure certain other financial assets at fair value on a nonrecurring basis. These measurements of fair value usually result from the application of lower-of-cost-or-fair value accounting or write-downs of individual assets.

U.S. Bancorp 65

The following table summarizes the balances as of the measurement date of assets measured at fair value on a nonrecurring basis, and still held as of the reporting date:

	June 30, 2022								December 31, 2021
(Dollars in Millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Loans (a)	$	–	$	–	$	69	$	69	$	–	$	–	$	59	$	59
Other assets (b)		–		–		28		28		–		–		77		77

(a) Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off.

(b) Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition.

The following table summarizes losses recognized related to nonrecurring fair value measurements of individual assets or portfolios:

	Three Months Ended June 30				Six Months Ended June 30
(Dollars in Millions)	2022		2021		2022		2021
Loans (a)	$	22	$	12	$	33	$	43
Other assets (b)		10		5		11		6

(a) Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off.     

(b) Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition.

Fair Value Option

The following table summarizes the differences between the aggregate fair value carrying amount of MLHFS for which the fair value option has been elected and the aggregate unpaid principal amount that the Company is contractually obligated to receive at maturity:    

	June 30, 2022						December 31, 2021
(Dollars in Millions)	Fair Value Carrying Amount		Aggregate Unpaid Principal		Carrying Amount Over (Under) Unpaid Principal		Fair Value Carrying Amount		Aggregate Unpaid Principal		Carrying Amount Over (Under) Unpaid Principal
Total loans	$	2,773	$	2,753	$	20	$	6,623	$	6,453	$	170
Nonaccrual loans		1		1		–		1		1		–
Loans 90 days or more past due		1		1		–		2		2		–

Fair Value of Financial Instruments

The following section summarizes the estimated fair value for financial instruments accounted for at amortized cost as of June 30, 2022 and December 31, 2021. In accordance with disclosure guidance related to fair values of financial instruments, the Company did not include assets and liabilities that are not financial instruments, such as the value of goodwill, long-term relationships with deposit, credit card, merchant processing and trust customers, other purchased intangibles, premises and equipment, deferred taxes and other liabilities. Additionally, in accordance with the disclosure guidance, receivables and payables due in one year or less, insurance contracts, equity investments not accounted for at fair value, and deposits with no defined or contractual maturities are excluded.

66 U.S. Bancorp

The estimated fair values of the Company’s financial instruments are shown in the table below:

	June 30, 2022										December 31, 2021
	Carrying Amount		Fair Value								Carrying Amount		Fair Value
(Dollars in Millions)			Level 1		Level 2		Level 3		Total				Level 1		Level 2		Level 3		Total
Financial Assets
Cash and due from banks	$	39,124	$	39,124	$	–	$	–	$	39,124	$	28,905	$	28,905	$	–	$	–	$	28,905
Federal funds sold and securities purchased under resale agreements		520		–		520		–		520		359		–		359		–		359
Investment securities held-to-maturity		61,503		1,337		54,320		–		55,657		41,858		–		41,812		–		41,812
Loans held for sale (a)		1,170		–		–		1,170		1,170		1,152		–		–		1,152		1,152
Loans		326,537		–		–		321,095		321,095		306,304		–		–		312,724		312,724
Other (b)		2,391		–		1,679		712		2,391		1,521		–		630		891		1,521
Financial Liabilities
Time deposits		30,622		–		30,039		–		30,039		22,665		–		22,644		–		22,644
Short-term borrowings (c)		23,128		–		22,789		–		22,789		9,750		–		9,646		–		9,646
Long-term debt		29,408		–		27,901		–		27,901		32,125		–		32,547		–		32,547
Other (d)		3,896		–		1,135		2,761		3,896		3,862		–		1,170		2,692		3,862

(a) Excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected.     

(b) Includes investments in Federal Reserve Bank and Federal Home Loan Bank stock and tax-advantaged investments.    

(c) Excludes the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.

(d) Includes operating lease liabilities and liabilities related to tax-advantaged investments.    

The fair value of unfunded commitments, deferred non-yield related loan fees, standby letters of credit and other guarantees is approximately equal to their carrying value. The carrying value of unfunded commitments, deferred non-yield related loan fees and standby letters of credit was $486 million and $495 million at June 30, 2022 and December 31, 2021, respectively. The carrying value of other guarantees was $224 million and $245 million at June 30, 2022 and December 31, 2021, respectively.

 Note  16    Guarantees and Contingent Liabilities

Visa Restructuring and Card Association Litigation The Company’s payment services business issues credit and debit cards and acquires credit and debit card transactions through the Visa U.S.A. Inc. card association or its affiliates (collectively “Visa”). In 2007, Visa completed a restructuring and issued shares of Visa Inc. common stock to its financial institution members in contemplation of its initial public offering (“IPO”) completed in the first quarter of 2008 (the “Visa Reorganization”). As a part of the Visa Reorganization, the Company received its proportionate number of shares of Visa Inc. common stock, which were subsequently converted to Class B shares of Visa Inc. (“Class B shares”).

Visa U.S.A. Inc. (“Visa U.S.A.”) and MasterCard International (collectively, the “Card Brands”) are defendants in antitrust lawsuits challenging the practices of the Card Brands (the “Visa Litigation”). Visa U.S.A. member banks have a contingent obligation to indemnify Visa Inc. under the Visa U.S.A. bylaws (which were modified at the time of the restructuring in October 2007) for potential losses arising from the Visa Litigation. The indemnification by the Visa U.S.A. member banks has no specific maximum amount. Using proceeds from its IPO and through reductions to the conversion ratio applicable to the Class B shares held by Visa U.S.A. member banks, Visa Inc. has funded an escrow account for the benefit of member financial institutions to fund their indemnification obligations associated with the Visa Litigation. The receivable related to the escrow account is classified in other liabilities as a direct offset to the related Visa Litigation contingent liability.

In October 2012, Visa signed a settlement agreement to resolve class action claims associated with the multidistrict interchange litigation pending in the United States District Court for the Eastern District of New York (the “Multi-District Litigation”). The U.S. Court of Appeals for the Second Circuit reversed the approval of that settlement and remanded the matter to the district court. Thereafter, the case was split into two putative class actions, one seeking damages (the “Damages Action”) and a separate class action seeking injunctive relief only (the “Injunctive Action”). In September 2018, Visa signed a new settlement agreement, superseding the original settlement agreement, to resolve the Damages Action. The Damages Action settlement was approved by the United States District Court for the Eastern District of New York, but is now on appeal. The Injunctive Action, which generally seeks changes to Visa rules, is still pending.

U.S. Bancorp 67

Other Guarantees and Contingent Liabilities

The following table is a summary of other guarantees and contingent liabilities of the Company at June 30, 2022:

(Dollars in Millions)	Collateral Held		Carrying Amount		Maximum Potential Future Payments
Standby letters of credit	$	—	$	55	$	9,844
Third party borrowing arrangements		—		—		7
Securities lending indemnifications		7,822		—		7,461
Asset sales		—		85		7,629	(a)
Merchant processing		1,415		118		141,453
Tender option bond program guarantee		1,521		—		1,489
Other		—		21		1,343

(a) The maximum potential future payments do not include loan sales where the Company provides standard representation and warranties to the buyer against losses related to loan underwriting documentation defects that may have existed at the time of sale that generally are identified after the occurrence of a triggering event such as delinquency. For these types of loan sales, the maximum potential future payments is generally the unpaid principal balance of loans sold measured at the end of the current reporting period. Actual losses will be significantly less than the maximum exposure, as only a fraction of loans sold will have a representation and warranty breach, and any losses on repurchase would generally be mitigated by any collateral held against the loans.

Merchant Processing The Company, through its subsidiaries, provides merchant processing services. Under the rules of credit card associations, a merchant processor retains a contingent liability for credit card transactions processed. This contingent liability arises in the event of a billing dispute between the merchant and a cardholder that is ultimately resolved in the cardholder’s favor. In this situation, the transaction is “charged-back” to the merchant and the disputed amount is credited or otherwise refunded to the cardholder. If the Company is unable to collect this amount from the merchant, it bears the loss for the amount of the refund paid to the cardholder.

The Company currently processes card transactions in the United States, Canada and Europe through wholly-owned subsidiaries. In the event a merchant was unable to fulfill product or services subject to future delivery, such as airline tickets, the Company could become financially liable for refunding the purchase price of such products or services purchased through the credit card associations under the charge-back provisions. Charge-back risk related to these merchants is evaluated in a manner similar to credit risk assessments and, as such, merchant processing contracts contain various provisions to protect the Company in the event of default. At June 30, 2022, the value of airline tickets purchased to be delivered at a future date through card transactions processed by the Company was $9.1 billion. The Company held collateral of $1.2 billion in escrow deposits, letters of credit and indemnities from financial institutions, and liens on various assets. In addition to specific collateral or other credit enhancements, the Company maintains a liability for its implied guarantees associated with future delivery. At June 30, 2022, the liability was $100 million primarily related to these airline processing arrangements.

Asset Sales The Company regularly sells loans to GSEs as part of its mortgage banking activities. The Company provides customary representations and warranties to GSEs in conjunction with these sales. These representations and warranties generally require the Company to repurchase assets if it is subsequently determined that a loan did not meet specified criteria, such as a documentation deficiency or rescission of mortgage insurance. If the Company is unable to cure or refute a repurchase request, the Company is generally obligated to repurchase the loan or otherwise reimburse the GSE for losses. At June 30, 2022, the Company had reserved $13 million for potential losses from representation and warranty obligations, compared with $18 million at December 31, 2021. The Company’s reserve reflects management’s best estimate of losses for representation and warranty obligations. The Company’s repurchase reserve is modeled at the loan level, taking into consideration the individual credit quality and borrower activity that has transpired since origination. The model applies credit quality and economic risk factors to derive a probability of default and potential repurchase that are based on the Company’s historical loss experience, and estimates loss severity based on expected collateral value. The Company also considers qualitative factors that may result in anticipated losses differing from historical loss trends.

As of June 30, 2022 and December 31, 2021, the Company had $35 million and $19 million, respectively, of unresolved representation and warranty claims from GSEs. The Company does not have a significant amount of unresolved claims from investors other than GSEs.

68 U.S. Bancorp

Litigation and Regulatory Matters

The Company is subject to various litigation and regulatory matters that arise in the ordinary course of its business. The Company establishes reserves for such matters when potential losses become probable and can be reasonably estimated. The Company believes the ultimate resolution of existing legal and regulatory matters will not have a material adverse effect on the financial condition, results of operations or cash flows of the Company. However, in light of the uncertainties inherent in these matters, it is possible that the ultimate resolution of one or more of these matters may have a material adverse effect on the Company’s results from operations for a particular period, and future changes in circumstances or additional information could result in additional accruals or resolution in excess of established accruals, which could adversely affect the Company’s results from operations, potentially materially.

Residential Mortgage-Backed Securities Litigation Starting in 2011, the Company and other large financial institutions have been sued in their capacity as trustee for residential mortgage–backed securities trusts. In the lawsuits brought against the Company, the investors allege that the Company’s banking subsidiary, U.S. Bank National Association (“U.S. Bank”), as trustee caused them to incur substantial losses by failing to enforce loan repurchase obligations and failing to abide by appropriate standards of care after events of default allegedly occurred. The plaintiffs in these matters seek monetary damages in unspecified amounts and most also seek equitable relief.

Regulatory Matters The Company is continually subject to examinations, inquiries and investigations in areas of heightened regulatory scrutiny, such as compliance, risk management, third-party risk management and consumer protection. The Company is cooperating fully with all pending examinations, inquiries and investigations, any of which could lead to administrative or legal proceedings or settlements. Remedies in these proceedings or settlements may include fines, penalties, restitution or alterations in the Company’s business practices (which may increase the Company’s operating expenses and decrease its revenue).

On July 27, 2022, U.S. Bank agreed to the issuance of a consent order with the Consumer Financial Protection Bureau resolving the previously disclosed investigation of certain of the Company’s consumer sales practices. The financial impact of the resolution was not material to the Company’s financial condition, results of operations or cash flows.

Outlook Due to their complex nature, it can be years before litigation and regulatory matters are resolved. The Company may be unable to develop an estimate or range of loss where matters are in early stages, there are significant factual or legal issues to be resolved, damages are unspecified or uncertain, or there is uncertainty as to a litigation class being certified or the outcome of pending motions, appeals or proceedings. For those litigation and regulatory matters where the Company has information to develop an estimate or range of loss, the Company believes the upper end of the range of reasonably possible losses in aggregate, in excess of any reserves established for matters where a loss is considered probable, will not be material to its financial condition, results of operations or cash flows. The Company’s estimates are subject to significant judgment and uncertainties, and the matters underlying the estimates will change from time to time. Actual results may vary significantly from the current estimates.

Note  17    Business 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 five reportable operating segments:

Corporate and Commercial Banking Corporate and Commercial Banking offers lending, equipment finance and small-ticket leasing, depository services, treasury management, capital markets services, international trade services and other financial services to middle market, large corporate, commercial real estate, financial institution, non-profit and public sector clients.

Consumer and Business Banking Consumer and Business Banking delivers products and services through banking offices, telephone servicing and sales, on-line services, direct mail, ATM processing and mobile devices. It encompasses community banking, metropolitan banking and indirect lending, as well as mortgage banking.

Wealth Management and Investment Services Wealth Management and Investment Services provides private banking, financial advisory services, investment management, retail brokerage services, insurance, trust, custody and fund

U.S. Bancorp 69

servicing through four businesses: Wealth Management, Global Corporate Trust & Custody, U.S. Bancorp Asset Management and Fund Services.

Payment Services Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate, government and purchasing card services, consumer lines of credit 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 2022, certain organization and methodology changes were made and, accordingly, 2021 results were restated and presented on a comparable basis.

70 U.S. Bancorp

Business segment results for the three months ended June 30 were as follows:

	Corporate and Commercial Banking							Consumer and Business Banking						Wealth Management and Investment Services
(Dollars in Millions)	2022			2021				2022			2021			2022			2021
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	784		$	726			$	1,617		$	1,534		$	352		$	246
Noninterest income		272			265				395			634			652			549
Total net revenue		1,056			991				2,012			2,168			1,004			795
Nointerest expense		453			433				1,419			1,375			581			521
Income (loss) before provision and income taxes		603			558				593			793			423			274
Provision for credit losses		100			—				(75	)		(68	)		(4	)		(4	)
Income (loss) before income taxes		503			558				668			861			427			278
Income taxes and taxable-equivalent adjustment		126			140				167			215			107			70
Net income (loss)		377			418				501			646			320			208
Net (income) loss attributable to noncontrolling interests		—			—				—			—			—			—
Net income (loss) attributable to U.S. Bancorp	$	377		$	418			$	501		$	646		$	320		$	208
Average Balance Sheet
Loans	$	123,210		$	102,275			$	141,135		$	140,826		$	22,320		$	17,442
Other earning assets		4,161			4,409				2,579			8,018			251			237
Goodwill		1,912			1,647				3,244			3,476			1,718			1,618
Other intangible assets		4			5				3,634			2,828			300			84
Assets		137,773			114,186				156,132			161,695			25,786			20,470
Noninterest-bearing deposits		58,266			60,696				31,642			33,702			25,019			23,288
Interest-bearing deposits		93,678			70,019				168,486			158,164			71,759			73,347
Total deposits		151,944			130,715				200,128			191,866			96,778			96,635
Total U.S. Bancorp shareholders’ equity		13,989			13,816				12,366			12,337			3,618			3,089
	Payment Services							Treasury and Corporate Support						Consolidated Company
(Dollars in Millions)	2022			2021				2022			2021			2022			2021
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	619		$	595			$	92		$	63		$	3,464		$	3,164
Noninterest income		994	(a)		913	(a	)		235			258			2,548	(b)		2,619 (b)
Total net revenue		1,613			1,508				327			321			6,012 (c)			5,783 (c)
Noninterest expense		871			829				400			229			3,724			3,387
Income (loss) before provision and income taxes		742			679				(73	)		92			2,288			2,396
Provision for credit losses		221			91				69			(189	)		311			(170	)
Income (loss) before income taxes		521			588				(142	)		281			1,977			2,566
Income taxes and taxable-equivalent adjustment		130			147				(87	)		6			443			578
Net income (loss)		391			441				(55	)		275			1,534			1,988
Net (income) loss attributable to noncontrolling interests		—			—				(3	)		(6	)		(3	)		(6	)
Net income (loss) attributable to U.S. Bancorp	$	391		$	441			$	(58	)	$	269		$	1,531		$	1,982
Average Balance Sheet
Loans	$	33,854		$	30,030			$	3,668		$	3,711		$	324,187		$	294,284
Other earning assets		1,023			5				204,560			193,798			212,574			206,467
Goodwill		3,318			3,176				—			—			10,192			9,917
Other intangible assets		438			518				—			—			4,376			3,435
Assets		41,054			35,618				219,166			219,396			579,911			551,365
Noninterest-bearing deposits		3,396			5,030				2,504			2,581			120,827			125,297
Interest-bearing deposits		167			141				1,599			2,242			335,689			303,913
Total deposits		3,563			5,171				4,103			4,823			456,516			429,210
Total U.S. Bancorp shareholders’ equity		8,115			7,413				11,078			16,307			49,166			52,962

(a) Presented net of related rewards and rebate costs and certain partner payments of $772 million and $633 million for the three months ended June 30, 2022 and 2021, respectively.

(b) Includes revenue generated from certain contracts with customers of $2.0 billion and $1.9 billion for the three months ended June 30, 2022 and 2021, respectively.

(c) The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Under these arrangments, the Company recorded $188 million and $238 million of revenue for the three months ended June 30, 2022 and 2021, respectively, primarily consisting of interest income on sales-type and direct financing leases.

U.S. Bancorp 71

Business segment results for the six months ended June 30 were as follows:

	Corporate and Commercial Banking							Consumer and Business Banking						Wealth Management and Investment Services
(Dollars in Millions)	2022		2021					2022			2021			2022			2021
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	1,523	$	1,448				$	3,129		$	3,035		$	627		$	514
Noninterest income		517		533					856			1,203			1,248			1,080
Total net revenue		2,040		1,981					3,985			4,238			1,875			1,594
Nointerest expense		878		853					2,839			2,731			1,174			1,020
Income (loss) before provision and income taxes		1,162		1,128					1,146			1,507			701			574
Provision for credit losses		104		(46	)				(28	)		(108	)		4			1
Income (loss) before income taxes		1,058		1,174					1,174			1,615			697			573
Income taxes and taxable-equivalent adjustment		265		294					294			404			175			144
Net income (loss)		793		880					880			1,211			522			429
Net (income) loss attributable to noncontrolling interests		—		—					—			—			—			—
Net income (loss) attributable to U.S. Bancorp	$	793	$	880				$	880		$	1,211		$	522		$	429
Average Balance Sheet
Loans	$	119,557	$	102,201				$	140,984		$	141,170		$	21,521		$	17,147
Other earning assets		4,416		4,364					3,475			9,092			255			258
Goodwill		1,912		1,647					3,252			3,476			1,739			1,618
Other intangible assets		4		5					3,406			2,661			283			63
Assets		132,856		114,229					156,770			162,803			25,124			20,297
Noninterest-bearing deposits		60,298		58,524					31,807			33,244			26,204			22,339
Interest-bearing deposits		90,336		70,943					167,279			154,450			71,024			78,489
Total deposits		150,634		129,467					199,086			187,694			97,228			100,828
Total U.S. Bancorp shareholders’ equity		13,859		14,092					12,311			12,407			3,607			3,062
	Payment Services							Treasury and Corporate Support						Consolidated Company
(Dollars in Millions)	2022		2021					2022			2021			2022			2021
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	1,241	$	1,224				$	144		$	32		$	6,664		$	6,253
Noninterest income		1,852 (a)		1,698		(a	)		471			486			4,944 (b)			5,000 (b)
Total net revenue		3,093		2,922					615			518			11,608 (c)			11,253 (c)
Noninterest expense		1,726		1,627					609			535			7,226			6,766
Income (loss) before provision and income taxes		1,367		1,295					6			(17	)		4,382			4,487
Provision for credit losses		351		50					(8	)		(894	)		423			(997	)
Income (loss) before income taxes		1,016		1,245					14			877			3,959			5,484
Income taxes and taxable-equivalent adjustment		254		311					(121	)		58			867			1,211
Net income (loss)		762		934					135			819			3,092			4,273
Net (income) loss attributable to noncontrolling interests		—		—					(4	)		(11	)		(4	)		(11	)
Net income (loss) attributable to U.S. Bancorp	$	762	$	934				$	131		$	808		$	3,088		$	4,262
Average Balance Sheet
Loans	$	32,802	$	29,831				$	3,744		$	3,789		$	318,608		$	294,138
Other earning assets		1,023		5					205,541			191,382			214,710			205,101
Goodwill		3,322		3,175					—			—			10,225			9,916
Other intangible assets		450		530					—			—			4,143			3,259
Assets		39,803		35,356					224,110			217,372			578,663			550,057
Noninterest-bearing deposits		3,534		5,146					2,532			2,591			124,375			121,844
Interest-bearing deposits		164		137					2,174			1,932			330,977			305,951
Total deposits		3,698		5,283					4,706			4,523			455,352			427,795
Total U.S. Bancorp shareholders’ equity		8,067		7,535					13,460			15,750			51,304			52,846

(a) Presented net of related rewards and rebate costs and certain partner payments of $1.4 billion and $1.2 billion for the six months ended June 30, 2022 and 2021, respectively.

(b) Includes revenue generated from certain contracts with customers of $3.9 billion and $3.6 billion for the six months ended June 30, 2022 and 2021, respectively.

(c) The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Under these arrangments, the Company recorded $392 million and $466 million of revenue for the six months ended June 30, 2022 and 2021, respectively, primarily consisting of interest income on sales-type and direct financing leases.

72 U.S. Bancorp

 Note 18    Subsequent Events

The Company has evaluated the impact of events that have occurred subsequent to June 30, 2022 through the date the consolidated financial statements were filed with the United States Securities and Exchange Commission. Based on this evaluation, the Company has determined none of these events were required to be recognized or disclosed in the consolidated financial statements and related notes.

U.S. Bancorp 73

U.S. Bancorp

Consolidated Daily Average Balance Sheet and Related Yields and Rates (a)

	For the Three Months Ended June 30
				2022								2021
(Dollars in Millions) (Unaudited)	Average Balances			Interest		Yields and Rates			Average Balances			Interest		Yields and Rates			% Change Average Balances
Assets
Investment securities	$	171,296		$	825		1.93	%	$	160,615		$	635		1.58	%		6.7	%
Loans held for sale		3,688			54		5.89			7,825			55		2.78			(52.9	)
Loans (b)
Commercial		120,657			794		2.64			102,974			676		2.63			17.2
Commercial real estate		39,517			330		3.35			38,564			306		3.18			2.5
Residential mortgages		80,228			638		3.18			73,351			621		3.38			9.4
Credit card		22,748			589		10.38			21,116			554		10.54			7.7
Other retail		61,037			528		3.47			58,279			530		3.64			4.7
Total loans		324,187			2,879		3.56			294,284			2,687		3.66			10.2
Interest-bearing deposits with banks		31,116			57		.74			31,358			6		.08			(.8	)
Other earning assets		6,474			39		2.36			6,669			26		1.61			(2.9	)
Total earning assets		536,761			3,854		2.88			500,751			3,409		2.73			7.2
Allowance for loan losses		(5,710	)							(6,310	)							9.5
Unrealized gain (loss) on investment securities		(9,226	)							851								*
Other assets		58,086								56,073								3.6
Total assets	$	579,911							$	551,365								5.2
Liabilities and Shareholders’ Equity
Noninterest-bearing deposits	$	120,827							$	125,297								(3.6	)%
Interest-bearing deposits
Interest checking		116,878			20		.07			103,356			7		.03			13.1
Money market savings		123,788			121		.39			113,673			50		.18			8.9
Savings accounts		68,127			2		.01			62,102			1		.01			9.7
Time deposits		26,896			34		.51			24,782			24		.39			8.5
Total interest-bearing deposits		335,689			177		.21			303,913			82		.11			10.5
Short-term borrowings
Federal funds purchased		641			1		.17			2,204			—		.02			(70.9	)
Securities sold under agreements to repurchase		2,078			2		.10			1,658			1		.03			25.3
Commercial paper		6,289			4		.06			6,509			—		—			(3.4	)
Other short-term borrowings		14,286			50		.35			6,091			17		.27			*
Total short- term borrowings		23,294			57		.98			16,462			18		.43			41.5
Long-term debt		31,390			156		1.99			36,190			145		1.61			(13.3	)
Total interest-bearing liabilities		390,373			390		.40			356,565			245		.28			9.5
Other liabilities		19,078								15,910								19.9
Shareholders’ equity
Preferred equity		6,808								5,968								14.1
Common equity		42,358								46,994								(9.9	)
Total U.S. Bancorp shareholders’ equity		49,166								52,962								(7.2	)
Noncontrolling interests		467								631								(26.0	)
Total equity		49,633								53,593								(7.4	)
Total liabilities and equity	$	579,911							$	551,365								5.2
Net interest income				$	3,464							$	3,164
Gross interest margin							2.48	%							2.45	%
Gross interest margin without taxable-equivalent increments							2.46	%							2.43	%
Percent of Earning Assets
Interest income							2.88	%							2.73	%
Interest expense							.29								.20
Net interest margin							2.59	%							2.53	%
Net interest margin without taxable-equivalent increments							2.57	%							2.51	%

* Not meaningful

(a) Interest and rates are presented on a fully taxable-equivalent basis based on a federal income tax rate of 21 percent.

(b) Interest income and rates on loans include loan fees. Nonaccrual loans are included in average loan balances.

74 U.S. Bancorp

U.S. Bancorp

Consolidated Daily Average Balance Sheet and Related Yields and Rates (a)

	For the Six Months Ended June 30
				2022								2021
(Dollars in Millions) (Unaudited)	Average Balances			Interest		Yields and Rates			Average Balances			Interest		Yields and Rates			% Change Average Balances
Assets
Investment securities	$	173,019		$	1,561		1.80	%	$	153,109		$	1,169		1.53	%		13.0	%
Loans held for sale		4,579			114		5.00			8,922			122		2.73			(48.7	)
Loans (b)
Commercial		116,761			1,423		2.46			102,535			1,349		2.65			13.9
Commercial real estate		39,302			625		3.21			38,675			611		3.18			1.6
Residential mortgages		78,847			1,250		3.17			74,271			1,266		3.41			6.2
Credit card		22,297			1,151		10.41			21,130			1,132		10.81			5.5
Other retail		61,401			1,037		3.41			57,527			1,062		3.72			6.7
Total loans		318,608			5,486		3.47			294,138			5,420		3.71			8.3
Interest-bearing deposits with banks		30,487			71		.47			36,542			15		.08			(16.6	)
Other earning assets		6,625			67		2.02			6,528			50		1.57			1.5
Total earning assets		533,318			7,299		2.75			499,239			6,776		2.73			6.8
Allowance for loan losses		(5,706	)							(6,788	)							15.9
Unrealized gain (loss) on investment securities		(5,907	)							1,342								*
Other assets		56,958								56,264								1.2
Total assets	$	578,663							$	550,057								5.2
Liabilities and Shareholders’ Equity
Noninterest-bearing deposits	$	124,375							$	121,844								2.1	%
Interest-bearing deposits
Interest checking		115,975			29		.05			100,387			13		.03			15.5
Money market savings		121,700			173		.29			119,218			100		.17			2.1
Savings accounts		67,555			4		.01			60,484			3		.01			11.7
Time deposits		25,747			51		.40			25,862			51		.40			(.4	)
Total interest-bearing deposits		330,977			257		.16			305,951			167		.11			8.2
Short-term borrowings
Federal funds purchased		937			1		.16			1,840			1		.04			(49.1	)
Securities sold under agreements to repurchase		1,987			3		.14			1,665			1		.07			19.3
Commercial paper		6,381			4		.06			6,328			—		—			.8
Other short-term borrowings		11,873			70		.59			4,961			32		.65			*
Total short- term borrowings		21,178			78		.75			14,794			34		.47			43.2
Long-term debt		32,177			300		1.88			37,817			322		1.71			(14.9	)
Total interest-bearing liabilities		384,332			635		.33			358,562			523		.29			7.2
Other liabilities		18,184								16,174								12.4
Shareholders’ equity
Preferred equity		6,714								6,090								10.2
Common equity		44,590								46,756								(4.6	)
Total U.S. Bancorp shareholders’ equity		51,304								52,846								(2.9	)
Noncontrolling interests		468								631								(25.8	)
Total equity		51,772								53,477								(3.2	)
Total liabilities and equity	$	578,663							$	550,057								5.2
Net interest income				$	6,664							$	6,253
Gross interest margin							2.42	%							2.44	%
Gross interest margin without taxable-equivalent increments							2.40	%							2.42	%
Percent of Earning Assets
Interest income							2.75	%							2.73	%
Interest expense							.24								.21
Net interest margin							2.51	%							2.52	%
Net interest margin without taxable-equivalent increments							2.49	%							2.50	%

* Not meaningful

(a) Interest and rates are presented on a fully taxable-equivalent basis based on a federal income tax rate of 21 percent.

(b) Interest income and rates on loans include loan fees. Nonaccrual loans are included in average loan balances.

U.S. Bancorp 75

Part II — Other Information

Item 1. Legal Proceedings — See the information set forth in “Litigation and Regulatory Matters” in Note 16 in the Notes to Consolidated Financial Statements on page 69 of this Report, which is incorporated herein by reference.

Item 1A. Risk Factors — There are a number of factors that may adversely affect the Company’s business, financial results or stock price. Refer to “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, for discussion of these risks.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds — See the information set forth in the “Capital Management” section on page 26 of this Report for information regarding shares repurchased by the Company during the second quarter of 2022, which is incorporated herein by reference.

Item 6. Exhibits

2.1	Amendment No. 1 to the Share Purchase Agreement, dated as of May 10, 2022. *
3.1	Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.4 to the Company’s Form 8-K filed on April 20, 2022).
3.2	Amended and Restated Bylaws (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K filed on April 20, 2021).
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
32	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. section 1350 as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
101	The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, formatted in Inline XBRL: (i) Consolidated Balance Sheet, (ii) Consolidated Statement of Income, (iii) Consolidated Statement of Comprehensive Income, (iv) Consolidated Statement of Shareholders’ Equity, (v) Consolidated Statement of Cash Flows and (vi) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).

* The schedules and similar attachments to this exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to provide a copy of the omitted schedules and similar attachments on a supplemental basis to the U.S. Securities and Exchange Commission or its staff, if requested.

76 U.S. Bancorp

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	U.S. BANCORP
	By:	/s/    LISA R. STARK
Dated: August 4, 2022		Lisa R. Stark Controller (Principal Accounting Officer and Duly Authorized Officer)

U.S. Bancorp 77

EXHIBIT 31.1

CERTIFICATION PURSUANT TO RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, Andrew Cecere, certify that:

(1) I have reviewed this Quarterly Report on Form 10-Q of U.S. Bancorp;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/S/    ANDREW CECERE

Andrew Cecere

Chief Executive Officer

Dated: August 4, 2022

78 U.S. Bancorp

EXHIBIT 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, Terrance R. Dolan, certify that:

(1) I have reviewed this Quarterly Report on Form 10-Q of U.S. Bancorp;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/S/    TERRANCE R. DOLAN

Terrance R. Dolan

Chief Financial Officer

Dated: August 4, 2022

U.S. Bancorp 79

EXHIBIT 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Chief Executive Officer and Chief Financial Officer of U.S. Bancorp, a Delaware corporation (the “Company”), do hereby certify that:

(1) The Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 (the “Form 10-Q”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

/S/    ANDREW CECERE	/S/    TERRANCE R. DOLAN
Andrew Cecere Chief Executive Officer Dated: August 4, 2022	Terrance R. Dolan Chief Financial Officer

80 U.S. Bancorp

Corporate Information

Executive Offices

U.S. Bancorp

800 Nicollet Mall

Minneapolis, MN 55402

Common Stock Transfer Agent and Registrar

Computershare acts as our transfer agent and registrar, dividend paying agent and dividend reinvestment plan administrator, and maintains all shareholder records for the Company. Inquiries related to shareholder records, stock transfers, changes of ownership, lost stock certificates, changes of address and dividend payment should be directed to the transfer agent at:

Computershare

P.O. Box 505000

Louisville, KY 40233

Phone: 888-778-1311 or 201-680-6578 (international calls)

Internet: www.computershare.com/investor

Registered or Certified Mail:

Computershare

462 South 4th Street, Suite 1600

Louisville, KY 40202

Telephone representatives are available weekdays from 8 a.m. to 6 p.m., Central Time, and automated support is available 24 hours a day, seven days a week. Specific information about your account is available on Computershare’s Investor Center website.

Independent Auditor

Ernst & Young LLP serves as the independent auditor for U.S. Bancorp’s financial statements.

Common Stock Listing and Trading

U.S. Bancorp common stock is listed and traded on the New York Stock Exchange under the ticker symbol USB.

Dividends and Reinvestment Plan

U.S. Bancorp currently pays quarterly dividends on our common stock on or about the 15th day of January, April, July and October, subject to approval by our Board of Directors. U.S. Bancorp shareholders can choose to participate in a plan that provides automatic reinvestment of dividends and/or optional cash purchase of additional shares of U.S. Bancorp common stock. For more information, please contact our transfer agent, Computershare.

Investor Relations Contact

Jennifer A. Thompson, CFA

Executive Vice President, Investor Relations

jen.thompson@usbank.com

Phone: 612-303-0778 or 866-775-9668

Financial Information

U.S. Bancorp news and financial results are available through our website and by mail.

Website For information about U.S. Bancorp, including news, financial results, annual reports and other documents filed with the Securities and Exchange Commission, visit usbank.com and click on About Us.

Mail At your request, we will mail to you our quarterly earnings, news releases, quarterly financial data reported on Form 10-Q, Form 10-K and additional copies of our annual reports. Please contact:

U.S. Bancorp Investor Relations

800 Nicollet Mall

Minneapolis, MN 55402

investorrelations@usbank.com

Phone: 866-775-9668

Media Requests

David R. Palombi

Global Chief Communications Officer

Public Affairs and Communications

david.palombi@usbank.com

Phone: 612-303-3167

Privacy

U.S. Bancorp is committed to respecting the privacy of our customers and safeguarding the financial and personal information provided to us. To learn more about the U.S. Bancorp commitment to protecting privacy, visit usbank.com and click on Privacy.

Code of Ethics

At U.S. Bancorp, our commitment to high ethical standards guides everything we do. Demonstrating this commitment through our words and actions is how each of us does the right thing every day for our customers, shareholders, communities and each other. Our ethical culture has been recognized by the Ethisphere Institute, which again named us to its World’s Most Ethical Companies® list.

For details about our Code of Ethics and Business Conduct, visit usbank.com and click on About Us and then Investor Relations then Corporate Governance, and then Governance Documents.

Diversity and Inclusion

At U.S. Bancorp, embracing diversity, championing equity and fostering inclusion are business imperatives. We view everything we do through a diversity, equity and inclusion lens to deepen our relationships with our stakeholders: our employees, customers, shareholders and communities.

Our employees bring their whole selves to work. We respect and value each other’s differences, strengths and perspectives, and we strive to reflect the communities we serve. This makes us stronger, more innovative and more responsive to our diverse customers’ needs.

Equal Opportunity and Affirmative Action

U.S. Bancorp and our subsidiaries are committed to providing Equal Employment Opportunity to all employees and applicants for employment. In keeping with this commitment, employment decisions are made based on abilities, not race, color, religion, creed, citizenship, national origin or ancestry, gender, age, disability, veteran status, sexual orientation, marital status, gender identity or expression, genetic information or any other factors protected by law. The Company complies with municipal, state and federal fair employment laws, including regulations applying to federal contractors.

U.S. Bancorp, including each of our subsidiaries, is an equal opportunity employer committed to creating a diverse workforce.

Accessibility

U.S. Bancorp is committed to providing ready access to our products and services so all of our customers, including people with disabilities, can succeed financially. To learn more, visit usbank.com and click on Accessibility.

This report has been produced on recycled paper. 

EX-2.1

Exhibit 2.1

EXECUTION COPY

AMENDMENT NO. 1

TO THE

SHARE PURCHASE AGREEMENT

[Certain identified information has been excluded from this document because it is both not material and is the type that the registrant treats as private or confidential.]

This Amendment No. 1, dated as of May 10, 2022 (this “Amendment”), to the Share Purchase Agreement, dated as of September 21, 2021 (as amended, modified or supplemented from time to time in accordance with its terms, the “Purchase Agreement”), by and among Mitsubishi UFJ Financial Group, Inc., a joint stock company (kabushiki kaisha) organized under the laws of Japan (“Seller Holdco”), MUFG Americas Holdings Corporation, a corporation organized under the laws of the state of Delaware and a wholly owned Subsidiary of Seller Holdco (“Seller” and, collectively with Seller Holdco, “Sellers”) and U.S. Bancorp, a corporation organized under the laws of Delaware (“Purchaser”).

RECITALS

WHEREAS, in accordance with Section 8.2 of the Purchase Agreement, the parties hereto wish to amend the Purchase Agreement as set forth below.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

1. Defined Terms. Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Purchase Agreement.

2. Amendments. The parties acknowledge and agree that, effective on and as of the date hereof:

(a) Section 1.1 of the Purchase Agreement shall be amended by:

(i) inserting the following term in the appropriate alphabetical order:

“Bridge Account Interface Agreement” has the meaning set forth in Section 5.25.”

“Client Hedge Transactions” has the meaning set forth in the Derivatives, Loans and Letters of Credit Agreement.

“Derivatives, Loans and Letters of Credit Agreement” has the meaning set forth in Section 5.22.

“Excluded Commercial Card Business” has the meaning set forth in the Excluded Commercial Card Business P&A Agreement.

“Excluded Commercial Card Business P&A Agreement” has the meaning set forth in Section 5.22.

“Excluded Hedge Transactions” has the meaning set forth in the Derivatives, Loans and Letters of Credit Agreement.

“GCIB Deposits Agreement” has the meaning set forth in Section 5.22.

“GCIB Group A Deposits” means deposit liabilities of depositors primarily related to, or used primarily in connection with, the Excluded Assets and Liabilities, including those customers as of December 31, 2021 as listed on Schedule 5 attached hereto (it being understood, that Parent Bank may update the list of customers as of December 31, 2021 included on Schedule 5 to reflect such customers on such date and in such manner as agreed to by the parties to the GCIB Deposits Agreement), subject to the treatment of Excluded Clients (as defined in the GCIB Deposits Agreement) in accordance with the GCIB Deposits Agreement.

“GCIB Group C Deposits” means deposit liabilities of such depositors of the GCIB business as listed on Schedule 5 attached hereto (it being understood, that Parent Bank may update the list of customers as of December 31, 2021 included on Schedule 5 to reflect such customers on such date and in such manner as agreed to by the parties to the GCIB Deposits Agreement), subject to the treatment of Excluded Clients (as defined in the GCIB Deposits Agreement) in accordance with the GCIB Deposits Agreement.

“Stranded Loans” has the meaning set forth in the Derivatives, Loans and Letters of Credit Agreement.

“Stranded LOCs” has the meaning set forth in the Derivatives, Loans and Letters of Credit Agreement.

“Stranded Trades” has the meaning set forth in the Derivatives, Loans and Letters of Credit Agreement.

“Transferred FIG Portfolio” means assets and liabilities associated with the products and services provided to correspondent bank clients of the Bank as set forth on Schedule 6 attached hereto.

“Vendor Contracts Separation Framework” has the meaning set forth in Section 5.28.

2

(ii) amending and restating each of the following definitions in its entirety as follows:

“Excluded Customer” means any customer that is (a) a private equity or other fund sponsor and its individual funds and portfolio companies or (b) a Japanese Corporate Customer and any Person that is directly or indirectly controlled by a Japanese Corporate Customer, provided that, in the case of (a), such private equity or other fund sponsor, and in the case of (b), such Japanese Corporate Customer, is identified on the list of Excluded Customers to be delivered by Sellers to Purchaser pursuant to Section 5.7(b).

“P&A Agreement” means the Amended and Restated Excluded Assets and Liabilities Purchase and Assumption Agreement, dated May 10, 2022 by and among the Bank, the Bank’s subsidiaries named therein, Seller and Seller Bank, as amended by Amendment No. 1 thereto and any further amendments thereto from time to time as mutually agreed by the parties thereto and Purchaser.

“Transaction Documents” means this Agreement, the P&A Agreement, the Transitional Services Agreement, the Reverse Transitional Services Agreement, the Registration Rights Agreement, the Derivatives, Loans and Letters of Credit Agreement, the Excluded Commercial Card Business P&A Agreement and the GCIB Deposits Agreement.

(b) ARTICLE 3 of the Purchase Agreement shall be amended by replacing the words “(the “Sellers’ Disclosure Schedule”)” in the lead-in paragraph in their entirety with “(as amended by Amendment No. 1 thereto and any further amendments thereto from time to time as mutually agreed by the parties hereto, the “Sellers’ Disclosure Schedule”).

(c) Section 2.3 of the Purchase Agreement shall be amended by adding the following as a new clause (f):

“Notwithstanding the treatment of the GCIB Group A Deposits as part of the Excluded Assets and Liabilities, the liabilities of the Bank associated with the GCIB Group A Deposits (and, for the avoidance of doubt, the liabilities associated with the GCIB Group C Deposits) (i) as of the Estimated Closing Balance Sheet Date, shall be liabilities of the Bank on the Estimated Closing Balance Sheet and the corresponding determinations of Estimated TBV and Estimated Purchase Price and (ii) as of the close of business on the day immediately preceding the Closing Date, shall be treated as liabilities of the Bank on the Closing Balance Sheet and the corresponding determinations of Closing TBV and Purchase Price.”

3

(d) Section 2.3 of the Purchase Agreement shall be amended by adding the following as a new clause (g):

“Notwithstanding the treatment of the Commercial Card Business as part of the Excluded Assets and Liabilities, the assets and liabilities of the Commercial Card Business (i) as of the Estimated Closing Balance Sheet Date, shall be assets and liabilities of the Bank on the Estimated Closing Balance Sheet and the corresponding determinations of Estimated TBV and Estimated Purchase Price and (ii) as of the close of business on the day immediately preceding the Closing Date, shall be treated as assets and liabilities of the Bank on the Closing Balance Sheet and the corresponding determinations of Closing TBV and Purchase Price. Seller shall cause the Bank to have, as of the Closing, in an amount of cash at least equal to the amount of the liabilities of the Bank associated with the Group A Deposits and Group C Deposits plus the Excess Capital Amount, if applicable, in accordance with Section 5.15.”

(e) Section 3.7 of the Purchase Agreement shall be amended by:

(i) replacing the last sentence of Section 3.7(b) in its entirety with the following:

“Sellers have made available to Purchaser a true, correct and complete copy of each Material Contract other than the Related Party Contracts; provided that the Related Party Contracts set forth in Section 5.12(a) of the Sellers’ Disclosure Schedule shall be scheduled or provided by Sellers pursuant to Section 5.12(a).”

(ii) adding the following as a new clause (c):

“All Related Party Contracts have been entered into on terms the Bank reasonably believes to be on arms’-length. Except for those entered into in connection with the Transactions, all Related Party Contracts set forth in Section 5.12(a)(7) of the Sellers’ Disclosure Schedule have been entered into in the ordinary course of business of the Bank. All outstanding Intercompany Receivables or Intercompany Payables under the Contracts set forth in Section 5.12(a) of the Sellers’ Disclosure Schedule have been earned or incurred in the ordinary course of business of the Bank and in compliance with applicable Law and are recorded on the balance sheet of the Bank in accordance with GAAP, except as would not, individually or in the aggregate, reasonably be expected to be material to the Bank and the Transferred Subsidiaries, taken as a whole.”

(f) Section 5.2(a) of the Purchase Agreement shall be amended and restated in its entirety as follows:

“Except as (i) set forth in Section 5.2(a) of the Sellers’ Disclosure Schedule, (ii) is necessary and commercially reasonable in response to a Contagion Event or Contagion Event Measures, subject to Sellers providing Purchaser with advance notice and obtaining Purchaser’s prior written consent in respect of any such action (unless it is not reasonably practicable under the circumstances to provide such prior notice and

4

obtain prior consent, in which case Sellers shall provide notice to Purchaser as soon as reasonably practicable), or (iii) otherwise required or expressly contemplated by the Transaction Documents, from the date hereof until the earlier of the Closing Date or the termination of this Agreement, the Sellers shall cause the Bank and the Transferred Subsidiaries to (1) carry on their businesses in the ordinary course of business in all material respects; (2) use commercially reasonable efforts to preserve their present business organizations and relationships; and (3) use commercially reasonable efforts to preserve the rights, franchises, goodwill and relations of their customers, clients and others with whom business relationships exist; provided, that this Section 5.2(a) shall not apply to the Excluded Assets and Liabilities.”

(g) Section 5.5 of the Purchase Agreement shall be amended by replacing “two (2) years” with “seven (7) years” and adding to the end of Section 5.5 the following:

“Each of Sellers and Purchaser further agree that, for a period of seven (7) years following the Closing Date, if a Receiving Party has access to or receives Confidential Information of a Disclosing Party, it shall, and shall cause its Affiliates or their Representatives to, keep the Confidential Information as confidential and secret as its own similarly confidential documents and information, and shall employ such procedures (including employee trainings) as reasonably necessary to control the copying, accessing and distribution of any such Confidential Information.”

(h) Section 5.10(g) of the Purchase Agreement shall be replaced in its entirety with the following:

“Prior to the Effective Time, Sellers shall take any and all actions required to transfer the sponsorship of the Bank’s 401(k) Plan and the Bank’s 401(k) Plan Trust (together, the “Bank 401(k) Plan”) to Sellers or their Affiliates (other than the Bank and the Transferred Subsidiaries) effective immediately prior to and contingent upon the occurrence of the Effective Time. As soon as practicable following the Effective Time, Sellers and their Affiliates shall make its employer matching contribution to the Bank 401(k) Plan in respect of the Business Employees, pro-rated to reflect the portion of the plan year completed prior to the Closing. The Bank and the Purchaser shall take any and all actions as may be required, including amendments to the Bank 401(k) Plan and/or the tax-qualified defined contribution retirement plan designated by Purchaser (the “Purchaser 401(k) Plan”) to permit each Continuing Employee to make rollover contributions of “eligible rollover distributions” (within the meaning of Section 401(a)(31) of the Code, including of loans) in the form of cash, notes (in the case of loans) or a combination thereof, in an amount equal to the full account balance distributed or distributable to such Continuing Employee from the Bank 401(k) Plan to the Purchaser 401(k) Plan, as

5

promptly as reasonably practicable following the completion of the transition of such Continuing Employee onto the payroll of Purchaser (or an Affiliate of Purchaser that is a participating employer in the Purchaser 401(k) Plan). Each Continuing Employee shall become eligible to participate in the Purchaser 401(k) Plan as promptly as reasonably practicable following the completion of the transition of such Continuing Employee onto the payroll of Purchaser (or an Affiliate of Purchaser that is a participating employer in the Purchaser 401(k) Plan) (giving effect to the service crediting provisions of Section 5.10(b)).”

(i) Section 5.10(f) of the Purchase Agreement shall be replaced in its entirety with the following:

“Prior to the Effective Time, Sellers shall take all commercially reasonable actions necessary (i) to cause all Excluded Employees (and their eligible dependents) to cease participating in the Benefit Plans (other than the Bank 401(k) Plan) no later than immediately prior to the Effective Time, (ii) for all of the liabilities and obligations and, where applicable, assets (including pursuant to any related trusts, except as otherwise set forth in Section 5.10(f)(iv)) under the Benefit Plans set forth on Section 5.10(f)(ii) of the Sellers’ Disclosure Schedule, other than the liabilities and obligations and, where applicable, assets with respect to the Continuing Employees, to be assumed by employee benefit plans, programs and policies of Sellers or their Affiliates (other than the Bank and the Transferred Subsidiaries) no later than immediately prior to the Effective Time, such that, from and after the Effective Time, the Bank and the Transferred Subsidiaries and such Benefit Plans shall have no such liabilities or obligations other than those with respect to the Continuing Employees (and their eligible dependents), provided, that the portion of the assets that shall be assumed by Sellers or their Affiliates pursuant to this Section 5.10(f)(ii) shall be determined based on the proportion of the aggregate liabilities under the applicable Benefit Plan that is assumed by Sellers or their Affiliates or as otherwise required by law (including, without limitation, under Section 414(l) of the Code and Section 4044 of ERISA), provided, that, with respect to the MUFG Union Bank, N.A. Retirement Plan, (x) the liabilities, obligations and assets with respect to the Continuing Employees shall be transferred to a retirement plan and trust newly established at the Bank or a Transferred Subsidiary or Purchaser (at Purchaser’s election as communicated to Sellers prior to the transfer) (“Continuing Employee Retirement Plan”) and the liabilities, obligations and assets with respect to the Excluded Employees (and their eligible dependents) shall remain with the MUFG Union Bank, N.A. Retirement Plan, and (y) Sellers shall take any and all actions required to transfer the sponsorship of the MUFG Union Bank, N.A. Retirement Plan and the MUFG Union Bank, N.A. Retirement Plan Trust to Sellers or their Affiliates (other than the Bank and the Transferred Subsidiaries) effective immediately prior to and contingent upon the occurrence of the Effective

6

Time (unless the Sellers and Purchaser agree otherwise in good faith); provided, further, that, to the extent permitted by law (including, without limitation, under Section 414(l) of the Code and Section 4044 of ERISA) where the assets of the MUFG Union Bank, N.A. Retirement Plan are held in the form of non-cash securities and are required to be transferred to the Continuing Employee Retirement Plan, the securities shall be liquidated to cash and the proceeds, net of any reasonable transaction costs required to be incurred in the liquidation of such assets, shall be the maximum amount that may be transferred to the Continuing Employee Retirement Plan, (iii) to transfer the sponsorship of the Benefit Plans set forth on Section 5.10(f)(iii) of the Sellers’ Disclosure Schedule, and any associated trust, to the Bank or a Transferred Subsidiary, no later than immediately prior to the Effective Time; provided, that Seller (or its applicable Affiliates, other than the Bank and the Transferred Subsidiaries) shall assume or retain, as applicable, all liabilities and obligations for all worker’s compensation, short- and long-term disability, medical, prescription drug, dental, vision, life insurance, accidental death and dismemberment or other welfare benefit claims incurred by Excluded Employees prior to the Effective Time that are (and to the extent) covered under the terms of such Benefit Plan; provided, further, that for this purpose, a claim shall be deemed to be incurred (w) in the case of workers’ compensation and short- and long-term disability benefits (including related health benefits), at the time of the injury, sickness or other event giving rise to the claim for such benefits, (x) in the case of medical, prescription drug, dental or vision benefits, at the time that professional services, equipment or prescription drugs covered by such Benefit Plan are obtained, (y) in the case of life insurance benefits, upon death, and (z) in the case of accidental death and dismemberment, at the time of the accident, and notwithstanding the foregoing, in the case of a hospital stay or similar confinement that begins prior to the Effective Time and ends on or after the Effective Time, Seller (or its applicable Affiliate, other than the Bank and the Transferred Subsidiaries) shall be responsible for the cost of all professional services, equipment, and prescription drugs provided during such hospital stay or similar confinement in accordance with the terms and conditions of such Benefit Plan, and (iv) to transfer the sponsorship of the Benefit Plans set forth on Section 5.10(f)(iv) of the Sellers’ Disclosure Schedule to Sellers or their Affiliates (other than the Bank and the Transferred Subsidiaries) no later than immediately prior to the Effective Time.”

(j) Section 5.11(b) of the Purchase Agreement shall be amended by inserting the following sentence at the end of the provision:

“Purchaser shall cause the Bank to change its legal name to remove any reference to “MUFG” or any Seller Marks by the earlier of (x) the Bank Merger (it being understood that the legal name of the Bank will be changed by operation of the Bank Merger and the Bank Merger will occur in connection with the conversion of the Bank’s systems to the Purchaser’s systems) and (y) the one (1) year anniversary of the Closing Date.”

7

(k) Section 5.11 of the Purchase Agreement shall be amended by adding the following as a new clause (i):

“In the event Sellers or their Affiliates provide or make available any Excluded Data to the Purchaser or its Affiliates in connection with the Transactions, then the Sellers acknowledge and agree that Purchaser and its Affiliates shall be deemed authorized recipients thereof, and shall not be required to notify Sellers of such receipt. For purposes of this Section 5.11(i), “Excluded Data” means any Personal Information or Confidential Information relating to the Sellers or their Affiliates (other than the Bank and the Transferred Subsidiaries) or their past, current or potential customers, employees, directors and contractors or the Excluded Assets and Liabilities, whether on its own or combined, commingled or aggregated with data (including Personal Information or Confidential Information) relating to the Bank and the Transferred Subsidiaries.”

(l) Section 5.12 of the Purchase Agreement shall be amended and restated in its entirety as follows:

“Section 5.12 Intercompany Items. Except as set forth in Section 5.12 of the Sellers’ Disclosure Schedule, prior to the Closing, Sellers shall take, or cause to be taken, all such actions necessary so that (a) all Related Party Contracts are terminated (except for any Transaction Document and any other agreement (mutually agreed in form among the parties hereto) to effectuate the actions contemplated by any Transaction Document, including (i) the delivery of services under the Transitional Services Agreement or Reverse Transitional Services Agreement, (ii) the Client Hedge Transactions and Excluded Hedge Transactions and (iii) any other Related Party Contracts contemplated to be entered into by any Transaction Document by the parties thereto), and (b) all outstanding Intercompany Receivables or Intercompany Payables shall have been settled or paid (other than those under Related Party Contracts that are not required to be terminated prior to the Closing pursuant to clause (a)); provided that the parties hereby agree to work in good faith to agree upon mutually acceptable procedures for the settlement or payment of (i) such amounts in a tax-efficient manner and (ii) any trailing activities. Without limiting Purchaser’s rights under Section 5.1(a), at least thirty (30) days prior to the Closing, Sellers shall (A) deliver to Purchaser a schedule of key transaction terms of each Related Party Contract set forth in Section 5.12(a)(6) of the Sellers’ Disclosure Schedule, and (B) make available to Purchaser a true, correct and complete copy of each material Related Party Contract as set forth in Section 5.12(a)(7) of the Sellers’ Disclosure Schedule (other than material Related Party Contracts as set forth in Subitem a and b thereof, which are executed substantially in the form of

8

the standard form agreements provided by Sellers to Purchaser prior to May 10, 2022). After the Closing, (1) Purchaser and Sellers shall cooperate prior to the renewal of any Contract set forth on Section 5.12 of the Sellers’ Disclosure Schedule, and at the reasonable request of Purchaser, Sellers shall take such actions required to terminate any such Contracts prior to the applicable renewal period, including by sending nonrenewal notices to any Third Party to any Contract set forth on Section 5.12(a)(7) of the Sellers’ Disclosure Schedule in accordance with the terms of such Contract, and (2) upon the reasonable request of Purchaser, Sellers shall cooperate with Purchaser to amend the terms of, or terminate, any Contract set forth on Section 5.12 of the Sellers’ Disclosure Schedule that has not been entered into in the ordinary course of the business of the Bank and on arms’ length terms, including, with respect to any Contract set forth on Section 5.12(a)(7) of the Sellers’ Disclosure Schedule, by entering to bilateral arrangements between the Bank and Seller (or its applicable Affiliate) so that the economic terms under such Contract as between the Bank and Seller (or its applicable Affiliate) reflect arms’ length terms.”

(m) Section 5.14(a) of the Purchase Agreement shall be amended and restated in its entirety as follows:

“(a) Pursuant to the terms and conditions contained in the P&A Agreement, Sellers shall cause Bank and the Transferred Subsidiaries to transfer to Sellers and their Affiliates (other than the Bank or the Transferred Subsidiaries), as designated by the Sellers, and Sellers shall, or cause their Affiliates to, purchase and assume the assets and liabilities described in Schedule 4 attached hereto, as may be amended from time to time as mutually agreed by the parties hereto (such assets and liabilities, collectively, the “Excluded Assets and Liabilities” and such transfer or transfers, together with such other transactions described in the Excluded Assets and Liabilities Purchase and Assumption Agreement, the “Excluded Assets and Liabilities Transfer”). Subject to Section 2.7 hereof, the Excluded Assets and Liabilities Transfer shall be completed prior to the Closing; provided that (i) the Excluded Commercial Card Business shall be transferred by the Bank to Seller Bank after the Closing pursuant to the Excluded Commercial Card Business Purchase and Assumption Agreement, on the terms and subject to the conditions thereof; (ii) the GCIB Group A Deposits shall be transferred by the Bank to Seller Bank prior to or after the Closing pursuant to the GCIB Deposit Agreement, on the terms and subject to the conditions thereof; and (iii) the Stranded Trades, Stranded Loans and Stranded LOCs shall be transferred by the Bank to Seller Bank prior to or after the Closing pursuant to the Derivatives, Loans and Letters of Credit Agreement, on the terms and subject to the conditions thereof.”

9

(n) Section 5.22 of the Purchase Agreement shall be amended and restated in its entirety as follows:

“On the Closing Date, Purchaser (or the Purchaser Bank) and Sellers shall cause to be executed and delivered (i) a Transitional Services Agreement, substantially in the form attached hereto as Annex B (the “Transitional Services Agreement”), (ii) a Reverse Transitional Services Agreement, substantially in the form attached hereto as Annex C (the “Reverse Transitional Services Agreement”), and (iii) a Registration Rights Agreement, substantially in the form attached hereto as Annex D (the “Registration Rights Agreement”), in each case with any changes or modifications thereto mutually agreed by Sellers and Purchaser. On or as promptly as practicable following May 10, 2022, Bank and Seller Bank shall enter into an Excluded Commercial Card Business P&A Agreement, substantially in the form attached hereto as Annex E and as mutually agreed by the parties hereto (the “Excluded Commercial Card Business P&A Agreement”), with any changes or modifications thereto mutually agreed by Sellers and Purchaser; for the avoidance of doubt, the parties hereto agree that any assets and liabilities related to accounts that are reclassified as Transferred Accounts (as defined in the Excluded Commercial Card Business P&A Agreement) pursuant to Section 3.2(b) of the Excluded Commercial Card Business P&A Agreement shall no longer be considered Excluded Assets and Liabilities from and after the date of such reclassification. On or as promptly as practicable following May 10, 2022, the Sellers, Seller Bank, the Bank and Purchaser shall enter into a GCIB Deposits Agreement, substantially in the form attached hereto as Annex F and as mutually agreed by the parties hereto (the “GCIB Deposits Agreement”), with any changes or modifications thereto mutually agreed by Sellers and Purchaser; for the avoidance of doubt, the parties hereto agree that any assets or liabilities related to Reclassified Group C Accounts (as defined in the GCIB Deposits Agreement) pursuant to Section 2.1 of the GCIB Deposits Agreement shall no longer be considered Excluded Assets and Liabilities from and after the date of such reclassification. On or as promptly as practicable following May 10, 2022, the Sellers, Seller Bank, the Bank and Purchaser shall enter into an Derivatives, Loans and Letters of Credit Agreement, substantially in the form attached hereto as Annex G and as mutually agreed by the parties hereto (including the Master Risk Participation Agreement, between the Bank and Seller Bank attached as Annex A thereto, the LOC Participation Agreement between the Bank and Seller Bank attached as Annex B thereto, and the Loan Participation Agreement between the Bank and Seller Bank attached as Annex C thereto, the “Derivatives, Loans and Letters of Credit Agreement”), with any changes or modifications thereto mutually agreed by Sellers and Purchaser; for the avoidance of doubt, the parties hereto agree that any assets or liabilities related to the Stranded Trades, Stranded Loans and Stranded LOCs are part of the Excluded Assets and Liabilities.”

10

(o) Section 5.24 of the Purchase Agreement shall be amended by adding the following as a new clause (d):

“For the avoidance of doubt, the Carveout Financial Statements made available to Purchaser on or after May 10, 2022 will reflect the updated scope of the Transactions. The balance sheet for the Bank and the Transferred Subsidiaries as of December 31, 2021 contained in such Carveout Financial Statements will not include any Excluded Assets and Liabilities, other than the GCIB Group A Deposits and the Excluded Commercial Card Business, and will reflect all assets and liabilities of the Bank and the Transferred Subsidiaries (after giving effect to the Excluded Assets and Liabilities Transfer, other than the GCIB Group A Deposits and the Excluded Commercial Card Business) required to be set forth on such balance sheet, including the GCIB Group A Deposits, the GCIB Group C Deposits and the Excluded Commercial Card Business.”

(p) Section 5.25 of the Purchase Agreement shall be amended and restated in its entirety as follows:

“Sellers and Purchaser agree that, following the date hereof, they will make good faith efforts towards executing and delivering, as of the Closing, Contracts that would implement the proposed business relationships, including (1) financial service arrangements for Japanese corporate and individual clients to provide services that are similar to such services as provided by Sellers and the Bank prior to Closing, including the Bridge Account Interface Agreement, to be entered into by and between the Bank and Seller Bank prior to Closing, substantially in the form attached hereto as Annex H (the “Bridge Account Interface Agreement”); (2) collaboration in transaction banking services; (3) collaboration in financial technology business; and (4) other areas as mutually agreed to by the parties, in each case, on mutually acceptable terms taking into account each party’s risk appetite and expected economic returns.”

(q) ARTICLE 5 of the Purchase Agreement shall be further amended by inserting the following Section 5.28 at the end thereof:

“The Sellers and the Purchaser hereby agree to the vendor contracts separation framework attached hereto as Annex I (as may be updated from time to time by mutual agreement of the Sellers and Purchaser, the “Vendor Contracts Separation Framework”) and to implement the terms thereunder in good faith.”

11

(r) ARTICLE 5 of the Purchase Agreement shall be further amended by inserting the following Section 5.29 at the end thereof:

“The Sellers and the Purchaser hereby agree to the cost cap framework attached hereto as Annex J (as may be updated from time to time by mutual agreement of the Sellers and Purchaser, the “Cost Cap Framework”) and to implement the terms thereunder in good faith. Sellers and Purchaser acknowledge and agree that services provided under the Transitional Services Agreement and Reverse Transitional Services Agreement shall be subject to the Cost Cap Framework.”

(s) Section 6.1(c) of the Purchase Agreement shall be amended and restated in its entirety as follows:

“(c) Excluded Assets and Liabilities Transfer. Subject to Section 2.7 hereof, the Excluded Assets and Liabilities Transfer shall have been consummated, except with respect to the Excluded Commercial Card Business (subject to the Excluded Commercial Card Business P&A Agreement), Stranded Trades, Stranded Loans and Stranded LOCs (subject to the Derivatives, Loans and Letters of Credit Agreement), and the GCIB Group A Deposits (subject to the GCIB Deposits Agreement);”

(t) Schedule 4 of the Purchase Agreement shall be amended and restated in its entirety to read as the Schedule 4 set forth in Exhibit A hereto and, accordingly, each reference to “Schedule 4” in the Purchase Agreement shall be deemed a reference to Schedule 4 set forth in Exhibit A hereto.

(u) The schedule as set forth in Exhibit B hereto shall be added to the Purchase Agreement as the Schedule 5 attached thereto.

(v) The schedule as set forth in Exhibit C hereto shall be added to the Purchase Agreement as the Schedule 6 attached thereto.

(w) The Sellers’ Disclosure Schedule shall be amended by the Amendment No. 1 to the Sellers’ Disclosure Schedule, dated as of the date hereof, as set forth in Exhibit D hereto (the “Disclosure Schedule Amendment”) and, accordingly, each reference to the “Sellers’ Disclosure Schedule” in the Purchase Agreement shall be deemed a reference to the Sellers’ Disclosure Schedule, as amended by the Disclosure Schedule Amendment.

(x) The form of Excluded Commercial Card Business P&A Agreement as set forth in Exhibit E hereto shall be added to the Purchase Agreement as the Annex E attached thereto.

(y) The form of GCIB Deposits Agreement as set forth in Exhibit F hereto shall be added to the Purchase Agreement as the Annex F attached thereto.

(z) The form of Derivatives, Loans and Letter of Credit Agreement as set forth in Exhibit G hereto shall be added to the Purchase Agreement as the Annex G attached thereto.

12

(aa) The form of Bridge Account Interface Agreement as set forth in Exhibit H hereto shall be added to the Purchase Agreement as the Annex H attached thereto.

(bb) The Vendor Contracts Separation Framework as set forth in Exhibit I hereto shall be added to the Purchase Agreement as the Annex I attached thereto.

(cc) The Cost Cap Framework as set forth in Exhibit J hereto shall be added to the Purchase Agreement as the Annex J attached thereto.

3. No Other Amendments to Purchase Agreement.

(a) On and after the date hereof, each reference in the Purchase Agreement to “this Agreement”, “hereto”, “herein”, “hereof”, “hereunder” or words of similar import referring to the Purchase Agreement shall mean and be a reference to the Purchase Agreement as amended hereby.

(b) Except as otherwise expressly provided herein, all of the terms and conditions of the Purchase Agreement remain unchanged and continue in full force and effect.

4. Miscellaneous. The provisions of Sections 8.2 – 8.13 (inclusive) of the Purchase Agreement are incorporated into, and shall apply to, this Amendment, mutatis mutandis.

[Signature page follows]

13

IN WITNESS WHEREOF, this Amendment No. 1 has been executed on behalf of each of the parties hereto as of the date first above written.

MITSUBISHI UFJ FINANCIAL GROUP, INC.
By:	/s/ Takayoshi Futae
	Name: Takayoshi Futae
	Title: Managing Executive Officer
MUFG AMERICAS HOLDINGS CORPORATION
By:	/s/ Kevin Cronin
	Name: Kevin Cronin
	Title: President & CEO
U.S. BANCORP
By:	/s/ Andrew Cecere
	Name: Andrew Cecere
	Title: Chairman, President and Chief Executive Officer

[Signature Page to Amendment No. 1 to the Purchase Agreement]

[EXHIBITS]

[Information omitted]

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, Andrew Cecere, certify that:

(1) I have reviewed this Quarterly Report on Form 10-Q of U.S. Bancorp;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/S/    ANDREW CECERE

Andrew Cecere

Chief Executive Officer

Dated: August 4, 2022

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, Terrance R. Dolan, certify that:

(1) I have reviewed this Quarterly Report on Form 10-Q of U.S. Bancorp;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/S/    TERRANCE R. DOLAN

Terrance R. Dolan

Chief Financial Officer

Dated: August 4, 2022

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Chief Executive Officer and Chief Financial Officer of U.S. Bancorp, a Delaware corporation (the “Company”), do hereby certify that:

(1) The Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 (the “Form 10-Q”) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

/S/    ANDREW CECERE	/S/    TERRANCE R. DOLAN
Andrew Cecere Chief Executive Officer Dated: August 4, 2022	Terrance R. Dolan Chief Financial Officer

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Jul. 31, 2022
Document Information [Line Items]
Document Type	10-Q
Entity Registrant Name	US BANCORP \DE\
Document Period End Date	Jun. 30, 2022
Entity Filer Category	Large Accelerated Filer
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Smaller Reporting Company	false
Entity Emerging Growth Company	false
Document Transition Report	false
Document Quarterly Report	true
Entity File Number	1-6880
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	41-0255900
Entity Interactive Data Current	Yes
Entity Address, Postal Zip Code	55402
Entity Address, City or Town	Minneapolis
Entity Address, State or Province	MN
Entity Address, Address Line One	800 Nicollet Mall
City Area Code	651
Local Phone Number	466-3000
Entity Common Stock, Shares Outstanding		1,485,784,028
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000036104
Current Fiscal Year End Date	--12-31
Common Stock [Member]
Document Information [Line Items]
Trading Symbol	USB
Title of 12(b) Security	Common Stock
Security Exchange Name	NYSE
Series A Preferred Stock [Member]
Document Information [Line Items]
Trading Symbol	USB PrA
Title of 12(b) Security	Depositary Shares
Security Exchange Name	NYSE
Series B Preferred Stock [Member]
Document Information [Line Items]
Trading Symbol	USB PrH
Title of 12(b) Security	Depositary Shares
Security Exchange Name	NYSE
Series K Preferred Stock [Member]
Document Information [Line Items]
Trading Symbol	USB PrP
Title of 12(b) Security	Depositary Shares
Security Exchange Name	NYSE
Series L Preferred Stock [Member]
Document Information [Line Items]
Trading Symbol	USB PrQ
Title of 12(b) Security	Depositary Shares
Security Exchange Name	NYSE
Series M Preferred Stock [Member]
Document Information [Line Items]
Trading Symbol	USB PrR
Title of 12(b) Security	Depositary Shares
Security Exchange Name	NYSE
Series O Preferred Stock [Member]
Document Information [Line Items]
Trading Symbol	USB PrS
Title of 12(b) Security	Depositary Shares
Security Exchange Name	NYSE
Series X [Member]
Document Information [Line Items]
Trading Symbol	USB/24B
Title of 12(b) Security	Medium-Term Notes
Security Exchange Name	NYSE

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Consolidated Balance Sheet - USD ($) $ in Millions		Jun. 30, 2022		Dec. 31, 2021
Assets
Cash and due from banks		$ 39,124		$ 28,905
Held-to-maturity (fair value $55,657 and $41,812, respectively)		61,503	[1]	41,858
Available-for-sale ($987 and $557 pledged as collateral, respectively)	[2]	98,806		132,963
Loans held for sale (including $2,773 and $6,623 of mortgage loans carried at fair value, respectively)		3,943		7,775
Loans
Total loans		332,369		312,028
Less allowance for loan losses		(5,832)		(5,724)
Net loans		326,537		306,304
Premises and equipment		3,177		3,305
Goodwill		10,157		10,262
Other intangible assets		4,487		3,738
Other assets (including $1,258 and $1,193 of trading securities at fair value pledged as collateral, respectively)	[2]	43,647		38,174
Total assets		591,381		573,284
Deposits
Noninterest-bearing		129,130		134,901
Interest-bearing		337,972		321,182
Total deposits		467,102		456,083
Short-term borrowings		24,963		11,796
Long-term debt		29,408		32,125
Other liabilities		20,839		17,893
Total liabilities		542,312		517,897
Shareholders' equity
Preferred stock		6,808		6,371
Common stock, par value $0.01 a share—authorized: 4,000,000,000 shares; issued: 6/30/22 and 12/31/21—2,125,725,742 shares		21		21
Capital surplus		8,555		8,539
Retained earnings		70,772		69,201
Less cost of common stock in treasury: 6/30/22—639,959,317 shares; 12/31/21—642,223,571 shares		(27,190)		(27,271)
Accumulated other comprehensive income (loss)		(10,361)		(1,943)
Total U.S. Bancorp shareholders' equity		48,605		54,918
Noncontrolling interests		464		469
Total equity		49,069		55,387
Total liabilities and equity		591,381		573,284
Commercial
Loans
Total loans		125,983		112,023
Commercial real estate
Loans
Total loans		39,753		39,053
Residential mortgages
Loans
Total loans		82,114		76,493
Credit card
Loans
Total loans		23,697		22,500
Other retail
Loans
Total loans		$ 60,822		$ 61,959

[1] The weighted-average maturity of total held-to-maturity investment securities was 7.4 years at December 31, 2021, with a corresponding weighted-average yield of 1.45 percent. The weighted-average maturity of total available-for-sale investment securities was 5.5 years at December 31, 2021, with a corresponding weighted-average yield of 1.73 percent.

[2] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.

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Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions		Jun. 30, 2022		Dec. 31, 2021
Held-to-maturity securities, Fair Value		$ 55,657	[1]	$ 41,812
Securities, pledged as collateral		987		557
Mortgage loans, carried at fair value		$ 2,773		$ 6,623
Common stock, par value		$ 0.01		$ 0.01
Common stock, share-authorized (actual number of shares)		4,000,000,000		4,000,000,000
Common stock, shares issued (actual number of shares)		2,125,725,742		2,125,725,742
Treasury stock, shares (actual number of shares)		639,959,317		642,223,571
Available-for-Sale Securities [Member]
Securities, pledged as collateral	[2]	$ 987		$ 557
Trading Assets, Excluding Debt and Equity Securities [Member]
Securities, pledged as collateral	[2]	$ 1,258		$ 1,193

[1] The weighted-average maturity of total held-to-maturity investment securities was 7.4 years at December 31, 2021, with a corresponding weighted-average yield of 1.45 percent. The weighted-average maturity of total available-for-sale investment securities was 5.5 years at December 31, 2021, with a corresponding weighted-average yield of 1.73 percent.

[2] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.

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Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Interest Income
Loans	$ 2,869	$ 2,677	$ 5,468	$ 5,401
Loans held for sale	54	55	114	122
Investment securities	806	618	1,523	1,135
Other interest income	96	32	138	65
Total interest income	3,825	3,382	7,243	6,723
Interest Expense
Deposits	177	82	257	167
Short-term borrowings	57	18	78	34
Long-term debt	156	145	300	322
Total interest expense	390	245	635	523
Net interest income	3,435	3,137	6,608	6,200
Provision for credit losses	311	(170)	423	(997)
Net interest income after provision for credit losses	3,124	3,307	6,185	7,197
Noninterest Income
Credit and debit card revenue	399	396	737	732
Corporate payment products revenue	172	138	330	264
Merchant processing services	425	374	788	692
Trust and investment management fees	566	446	1,066	890
Deposit service charges	165	176	342	337
Treasury management fees	169	160	325	307
Commercial products revenue	290	280	556	560
Mortgage banking revenue	142	346	342	645
Investment products fees	59	60	121	115
Securities gains (losses), net	19	43	37	68
Other	142	200	300	390
Total noninterest income	2,548	2,619	4,944	5,000
Noninterest Expense
Compensation	1,872	1,798	3,725	3,601
Employee benefits	374	337	770	721
Net occupancy and equipment	265	258	534	521
Professional services	111	108	225	206
Marketing and business development	106	90	186	138
Technology and communications	350	362	699	721
Postage, printing and supplies	69	65	141	134
Other intangibles	40	40	87	78
Merger and integration charges	197	0	197	0
Other	340	329	662	646
Total noninterest expense	3,724	3,387	7,226	6,766
Income before income taxes	1,948	2,539	3,903	5,431
Applicable income taxes	414	551	811	1,158
Net income	1,534	1,988	3,092	4,273
Net (income) loss attributable to noncontrolling interests	(3)	(6)	(4)	(11)
Net income attributable to U.S. Bancorp	1,531	1,982	3,088	4,262
Net income applicable to U.S. Bancorp common shareholders	$ 1,464	$ 1,914	$ 2,930	$ 4,089
Earnings per common share	$ 0.99	$ 1.29	$ 1.97	$ 2.73
Diluted earnings per common share	$ 0.99	$ 1.28	$ 1.97	$ 2.73
Average common shares outstanding	1,486	1,489	1,485	1,495
Average diluted common shares outstanding	1,487	1,490	1,486	1,497

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Consolidated Statement of Comprehensive Income - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income		$ 1,534	$ 1,988	$ 3,092	$ 4,273
Other Comprehensive Income (Loss)
Changes in unrealized gains (losses) on investment securities available-for-sale		(4,761)	1,195	(11,515)	(2,183)
Changes in unrealized gains (losses) on derivative hedges		98	14	98	113
Foreign currency translation	[1]	(3)	(1)	(3)	24
Reclassification to earnings of realized (gains) losses		84	(11)	151	7
Income taxes related to other comprehensive income (loss)		1,159	(304)	2,851	515
Total other comprehensive income (loss)		(3,423)	893	(8,418)	(1,524)
Comprehensive income (loss)		(1,889)	2,881	(5,326)	2,749
Comprehensive (income) loss attributable to noncontrolling interests		(3)	(6)	(4)	(11)
Comprehensive income (loss) attributable to U.S. Bancorp		$ (1,892)	$ 2,875	$ (5,330)	$ 2,738

[1] Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges.

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Consolidated Statement of Shareholders' Equity - USD ($) $ in Millions		Total	Common Stock [Member]	Preferred Stock [Member]	Capital Surplus [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total U.S. Bancorp Shareholders' Equity [Member]	Noncontrolling Interests [Member]
Beginning Balance at Dec. 31, 2020		$ 53,725	$ 21	$ 5,983	$ 8,511	$ 64,188	$ (25,930)	$ 322	$ 53,095	$ 630
Shares, Beginning Balance at Dec. 31, 2020			1,507,000,000
Net income (loss)		4,273				4,262			4,262	11
Other comprehensive income (loss)		(1,524)						(1,524)	(1,524)
Preferred stock dividends	[1]	(148)				(148)			(148)
Common stock dividends		(1,258)				(1,258)			(1,258)
Issuance of preferred stock		730		730					730
Redemption of preferred stock		(750)		(745)		(5)			(750)
Issuance of common and treasury stock		36			(126)		162		36
Issuance of common and treasury stock, shares			4,000,000
Purchase of treasury stock		(1,537)					(1,537)		(1,537)
Purchase of treasury stock, shares			(28,000,000)
Distributions to noncontrolling interests		(11)								(11)
Net other changes in noncontrolling interests		5								5
Stock option and restricted stock grants		133			133				133
Shares, Ending Balance at Jun. 30, 2021			1,483,000,000
Ending Balance at Jun. 30, 2021		53,674	$ 21	5,968	8,518	67,039	(27,305)	(1,202)	53,039	635
Beginning Balance at Mar. 31, 2021		52,308	$ 21	5,968	8,487	65,740	(26,443)	(2,095)	51,678	630
Shares, Beginning Balance at Mar. 31, 2021			1,497,000,000
Net income (loss)		1,988				1,982			1,982	6
Other comprehensive income (loss)		893						893	893
Preferred stock dividends	[2]	(58)				(58)			(58)
Common stock dividends		(625)				(625)			(625)
Issuance of common and treasury stock		18			(7)		25		18
Issuance of common and treasury stock, shares			1,000,000
Purchase of treasury stock		(887)					(887)		(887)
Purchase of treasury stock, shares			(15,000,000)
Distributions to noncontrolling interests		(6)								(6)
Net other changes in noncontrolling interests		5								5
Stock option and restricted stock grants		38			38				38
Shares, Ending Balance at Jun. 30, 2021			1,483,000,000
Ending Balance at Jun. 30, 2021		53,674	$ 21	5,968	8,518	67,039	(27,305)	(1,202)	53,039	635
Beginning Balance at Dec. 31, 2021		55,387	$ 21	6,371	8,539	69,201	(27,271)	(1,943)	54,918	469
Shares, Beginning Balance at Dec. 31, 2021			1,484,000,000
Net income (loss)		3,092				3,088			3,088	4
Other comprehensive income (loss)		(8,418)						(8,418)	(8,418)
Preferred stock dividends	[3]	(143)				(143)			(143)
Common stock dividends		(1,374)				(1,374)			(1,374)
Issuance of preferred stock		437		437					437
Issuance of common and treasury stock		17			(119)		136		17
Issuance of common and treasury stock, shares			3,000,000
Purchase of treasury stock		(55)					(55)		(55)
Purchase of treasury stock, shares			(1,000,000)
Distributions to noncontrolling interests		(4)								(4)
Net other changes in noncontrolling interests		(5)								(5)
Stock option and restricted stock grants		135			135				135
Shares, Ending Balance at Jun. 30, 2022			1,486,000,000
Ending Balance at Jun. 30, 2022		49,069	$ 21	6,808	8,555	70,772	(27,190)	(10,361)	48,605	464
Beginning Balance at Mar. 31, 2022		51,668	$ 21	6,808	8,515	69,987	(27,193)	(6,938)	51,200	468
Shares, Beginning Balance at Mar. 31, 2022			1,486,000,000
Net income (loss)		1,534				1,531			1,531	3
Other comprehensive income (loss)		(3,423)						(3,423)	(3,423)
Preferred stock dividends	[4]	(59)				(59)			(59)
Common stock dividends		(687)				(687)			(687)
Issuance of common and treasury stock		1			(3)		4		1
Purchase of treasury stock		(1)					(1)		(1)
Distributions to noncontrolling interests		(2)								(2)
Net other changes in noncontrolling interests		(5)								(5)
Stock option and restricted stock grants		43			43				43
Shares, Ending Balance at Jun. 30, 2022			1,486,000,000
Ending Balance at Jun. 30, 2022		$ 49,069	$ 21	$ 6,808	$ 8,555	$ 70,772	$ (27,190)	$ (10,361)	$ 48,605	$ 464

[1] Reflects dividends declared per share on the Company’s Series A, Series B, Series F, Series I, Series J, Series K, Series L and Series M Non-Cumulative Perpetual Preferred Stock of $1,759.722, $439.931, $812.50, $232.953, $662.50, $687.50, $468.75 and $452.778 respectively.

[2] Reflects dividends declared per share on the Company’s Series A, Series B, Series F, Series K, Series L and Series M Non-Cumulative Perpetual Preferred Stock of $884.722, $221.181, $406.25, $343.75, $234.375 and $250.00 respectively.

[3] Reflects dividends declared per share on the Company’s Series A, Series B, Series J, Series K, Series L, Series M, Series N and Series O Non-Cumulative Perpetual Preferred Stock of $1,759.722, $439.931, $662.50, $687.50, $468.75, $500.00, $462.50 and $487.50 respectively.

[4] Reflects dividends declared per share on the Company’s Series A, Series B, Series K, Series L, Series M, Series N and Series O Non-Cumulative Perpetual Preferred Stock of $884.722, $221.181, $343.75, $234.375, $250.00, $231.25 and $281.25 respectively.

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Consolidated Statement of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Common stock dividends, share	$ 0.46	$ 0.42	$ 0.92	$ 0.84
Series A [Member]
Preferred stock dividends declared per share	884.722	884.722	1,759.722	1,759.722
Series B [Member]
Preferred stock dividends declared per share	221.181	221.181	439.931	439.931
Series F [Member]
Preferred stock dividends declared per share		406.25		812.5
Series I [Member]
Preferred stock dividends declared per share				232.953
Series J [Member]
Preferred stock dividends declared per share			662.5	662.5
Series K [Member]
Preferred stock dividends declared per share	343.75	343.75	687.5	687.5
Series L [Member]
Preferred stock dividends declared per share	234.375	234.375	468.75	468.75
Series M [Member]
Preferred stock dividends declared per share	250	$ 250	500	$ 452.778
Series N [Member]
Preferred stock dividends declared per share	231.25		462.5
Series O [Member]
Preferred stock dividends declared per share	$ 281.25		$ 487.5

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Consolidated Statement of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating Activities
Net income attributable to U.S. Bancorp	$ 3,088	$ 4,262
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses	423	(997)
Depreciation and amortization of premises and equipment	170	168
Amortization of intangibles	87	78
(Gain) loss on sale of loans held for sale	192	(584)
(Gain) loss on sale of securities and other assets	(67)	(192)
Loans originated for sale, net of repayments	(17,325)	(37,211)
Proceeds from sales of loans held for sale	20,564	39,789
Other, net	3,594	1,207
Net cash provided by operating activities	10,726	6,520
Investing Activities
Proceeds from sales of available-for-sale investment securities	14,797	5,567
Proceeds from maturities of held-to-maturity investment securities	2,407
Proceeds from maturities of available-for-sale investment securities	9,665	23,685
Purchases of held-to-maturity investment securities	(6,288)
Purchases of available-for-sale investment securities	(18,240)	(54,911)
Net (increase) decrease in loans outstanding	(20,072)	727
Proceeds from sales of loans	1,671	2,386
Purchases of loans	(1,698)	(2,574)
Net (increase) decrease in securities purchased under agreements to resell	(154)	131
Other, net	(1,604)	(367)
Net cash used in investing activities	(19,516)	(25,356)
Financing Activities
Net increase in deposits	11,019	7,412
Net increase in short-term borrowings	13,167	1,647
Proceeds from issuance of long-term debt	2,206	1,152
Principal payments or redemption of long-term debt	(5,154)	(5,928)
Proceeds from issuance of preferred stock	437	730
Proceeds from issuance of common stock	16	36
Repurchase of preferred stock	(1,100)	(1,250)
Repurchase of common stock	(55)	(1,537)
Cash dividends paid on preferred stock	(154)	(165)
Cash dividends paid on common stock	(1,373)	(1,268)
Net cash provided by financing activities	19,009	829
Change in cash and due from banks	10,219	(18,007)
Cash and due from banks at beginning of period	28,905	62,580
Cash and due from banks at end of period	$ 39,124	$ 44,573

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Basis of Presentation

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Basis of Presentation

 Note 1    Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flow activity required in accordance with accounting principles generally accepted in the United States. In the opinion of management of U.S. Bancorp (the “Company”), all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of results for the interim periods have been made. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Certain amounts in prior periods have been reclassified to conform to the current period presentation.

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Accounting Changes

6 Months Ended

Jun. 30, 2022

Accounting Changes and Error Corrections [Abstract]

Accounting Changes

  Note 2    Accounting Changes

Reference Interest Rate Transition In March 2020, the Financial Accounting Standards Board (“FASB”) issued accounting guidance, providing temporary optional expedients and exceptions to the guidance in United States generally accepted accounting principles on contract modifications and hedge accounting, to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. Under the guidance, a company can elect not to apply certain modification accounting requirements to contracts affected by reference rate transition, if certain criteria are met. A company that makes this election would not be required to remeasure the contracts at the modification date or reassess a previous accounting determination. This guidance also permits a company to elect various optional expedients that would allow it to continue applying hedge accounting for hedging relationships affected by reference rate transition, if certain criteria are met. The guidance is effective upon issuance and generally can be applied through December 31, 2022. The Company is in the process of evaluating and applying, as applicable, the optional expedients and exceptions in accounting for eligible contract modifications, eligible existing hedging relationships and new hedging relationships available through December 31, 2022. The adoption of this guidance has not had, and is expected to continue to not have, a material impact on the Company’s financial statements.

Fair Value Hedging – Portfolio Layer Method In March 2022, the FASB issued accounting guidance, effective for the Company no later than January 1, 2023, related to fair value hedge accounting of portfolios of financial assets. This guidance expands the current last-of-layer hedging method that permits a company to apply fair value hedging to a stated amount of a closed portfolio of prepayable financial assets, by allowing it to designate multiple hedging relationships on a single closed portfolio, resulting in a larger portion of the interest rate risk associated with such a portfolio being eligible to be hedged. The guidance also expands the scope of the method to include non-prepayable financial assets and clarifies other technical questions from the original accounting guidance. The Company expects the adoption of this guidance will not be material to its financial statements.

Financial Instruments – Troubled Debt Restructurings and Vintage Disclosures In March 2022, the FASB issued accounting guidance, effective for the Company no later than January 1, 2023, related to the recognition and measurement of troubled debt restructurings (“TDRs”) by creditors. This guidance removes the separate recognition and measurement requirements for TDRs by replacing them with a requirement for a company to apply existing accounting guidance to determine whether a modification results in a new loan or a continuation of an existing loan. This guidance also replaces existing TDR disclosures with similar but more expansive disclosures for certain modifications of receivables made to borrowers experiencing financial difficulty. Further, this guidance also requires companies to disclose current-period gross write-offs by year of origination for financing receivables. The guidance can be adopted on a prospective or modified retrospective basis. The Company expects the adoption of this guidance will not be material to its financial statements.

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Business Combinations

6 Months Ended

Jun. 30, 2022

Business Combinations [Abstract]

Business Combinations

  Note  3    Business Combinations

In September 2021, the Company announced that it entered into a definitive agreement to acquire MUFG Union Bank’s core regional banking franchise from Mitsubishi UFJ Financial Group, Inc. (“MUFG”), for an expected purchase price of approximately $8.0 billion, including $5.5 billion in cash and approximately 44 million shares of the Company’s common stock. The transaction excludes the purchase of substantially all of MUFG Union Bank’s Global Corporate & Investment Bank (other than certain deposits), certain middle and back office functions, and other assets. MUFG Union Bank has approximately 300 branches in California, Washington and Oregon and is expected to add approximately $105 billion in total assets, $58 billion of loans and $90 billion of deposits to the Company’s consolidated balance sheet. Closing of the transaction is subject to customary closing conditions, including regulatory approvals which are not within the Company’s control. The parties continue to make significant progress in planning for closing and integration while awaiting regulatory approvals. At this time, the Company expects to receive U.S. regulatory approvals in time for closing to occur in the second half of 2022. 

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Investment Securities

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Investment Securities

  Note  4    Investment Securities

The Company’s held-to-maturity investment securities are carried at historical cost, adjusted for amortization of premiums and accretion of discounts. The Company’s available-for-sale investment securities are carried at fair value with unrealized net gains or losses reported within accumulated other comprehensive income (loss) in shareholders’ equity.

The amortized cost, gross unrealized holding gains and losses, and fair value of held-to-maturity and available-for-sale investment securities were as follows:

	June 30, 2022									December 31, 2021
(Dollars in Millions)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Held-to-maturity
U.S. Treasury and agencies	$	1,343	$	–	$	(6	)	$	1,337	$	–	$	–	$	–		$	–
Residential agency mortgage-backed securities		60,160		2		(5,842	)		54,320		41,858		2		(48	)		41,812
Total held-to-maturity	$	61,503	$	2	$	(5,848	)	$	55,657	$	41,858	$	2	$	(48	)	$	41,812
Available-for-sale
U.S. Treasury and agencies	$	25,779	$	–	$	(2,012	)	$	23,767	$	36,648	$	205	$	(244	)	$	36,609
Mortgage-backed securities
Residential agency		62,788		23		(5,059	)		57,752		76,761		665		(347	)		77,079
Commercial agency		8,756		–		(1,192	)		7,564		8,633		53		(201	)		8,485
Asset-backed securities		–		–		–			–		62		4		–			66
Obligations of state and political subdivisions		10,925		11		(1,220	)		9,716		10,130		607		(20	)		10,717
Other		7		–		–			7		7		–		–			7
Total available-for-sale	$	108,255	$	34	$	(9,483	)	$	98,806	$	132,241	$	1,534	$	(812	)	$	132,963

During the second quarter of 2022, the Company transferred $17.1 billion amortized cost ($15.7 billion fair value) of available-for-sale investment securities to the held-to-maturity category to reflect its new intent for these securities.

Investment securities with a fair value of $16.9 billion at June 30, 2022, and $30.7 billion at December 31, 2021, were pledged to secure public, private and trust deposits, repurchase agreements and for other purposes required by contractual obligation or law. Included in these amounts were securities where the Company and certain counterparties have agreements granting the counterparties the right to sell or pledge the securities. Investment securities securing these types of arrangements had a fair value of $987 million at June 30, 2022, and $557 million at December 31, 2021.

The following table provides information about the amount of interest income from taxable and non-taxable investment securities:

	Three Months Ended June 30				Six Months Ended June 30
(Dollars in Millions)	2022		2021		2022		2021
Taxable	$	732	$	554	$	1,378	$	1,009
Non-taxable		74		64		145		126
Total interest income from investment securities	$	806	$	618	$	1,523	$	1,135

The following table provides information about the amount of gross gains and losses realized through the sales of available-for-sale investment securities:

	Three Months Ended June 30					Six Months Ended June 30
(Dollars in Millions)	2022			2021		2022			2021
Realized gains	$	144		$	43	$	386		$	68
Realized losses		(125	)		–		(349	)		–
Net realized gains	$	19		$	43	$	37		$	68
Income tax on net realized gains	$	5		$	11	$	9		$	17

The Company conducts a regular assessment of its available-for-sale investment securities with unrealized losses to determine whether all or some portion of a security’s unrealized loss is related to credit and an allowance for credit losses is necessary. If the Company intends to sell or it is more likely than not the Company will be required to sell an investment security, the amortized cost of the security is written down to fair value. When evaluating credit losses, the Company considers various factors such as the nature of the investment security, the credit ratings or financial condition of the issuer, the extent of the unrealized loss, expected cash flows of underlying collateral, the existence of any government or agency guarantees, and market conditions. The Company measures the allowance for credit losses using market information where available and discounting the cash flows at the original effective rate of the investment security. The allowance for credit losses is adjusted each period through earnings and can be subsequently recovered. The allowance for credit losses on the Company’s available-for-sale investment securities was immaterial at June 30, 2022 and December 31, 2021.

At June 30, 2022, certain investment securities had a fair value below amortized cost. The following table shows the gross unrealized losses and fair value of the Company’s available-for-sale investment securities with unrealized losses, aggregated by investment category and length of time the individual investment securities have been in continuous unrealized loss positions, at June 30, 2022:

	Less Than 12 Months					12 Months or Greater					Total
(Dollars in Millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury and agencies	$	19,590	$	(1,581	)	$	3,511	$	(431	)	$	23,101	$	(2,012	)
Residential agency mortgage-backed securities		50,819		(4,281	)		5,360		(778	)		56,179		(5,059	)
Commercial agency mortgage-backed securities		4,852		(657	)		2,711		(535	)		7,563		(1,192	)
Obligations of state and political subdivisions		8,430		(1,057	)		396		(163	)		8,826		(1,220	)
Other		6		–			–		–			6		–
Total investment securities	$	83,697	$	(7,576	)	$	11,978	$	(1,907	)	$	95,675	$	(9,483	)

These unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase of these available-for-sale investment securities. U.S. Treasury and agencies securities and agency mortgage-backed securities are issued, guaranteed or otherwise supported by the United States government. The Company’s obligations of state and political subdivisions are generally high grade. Accordingly, the Company does not consider these unrealized losses to be credit-related and an allowance for credit losses is not necessary. In general, the issuers of the investment securities are contractually prohibited from prepayment at less than par, and the Company did not pay significant purchase premiums for these investment securities. At June 30, 2022, the Company had no plans to sell investment securities with unrealized losses, and believes it is more likely than not it would not be required to sell such investment securities before recovery of their amortized cost.

During the six months ended June 30, 2022 and 2021, the Company did not purchase any investment securities that had more-than-insignificant credit deterioration.

All of the Company’s held-to-maturity investment securities are highly rated agency mortgage-backed securities that are guaranteed or otherwise supported by the United States government and have no history of credit losses. Accordingly the Company does not expect to incur any credit losses on held-to-maturity investment securities and has no allowance for credit losses recorded for these securities.

The following table provides information about the amortized cost, fair value and yield by maturity date of the investment securities outstanding at June 30, 2022:

(Dollars in Millions)	Amortized Cost		Fair Value		Weighted- Average Maturity in Years		Weighted- Average Yield (e)
Held-to-maturity
U.S. Treasury and Agencies
Maturing in one year or less	$	–	$	–		–		–	%
Maturing after one year through five years		1,343		1,337		3.8		2.85
Maturing after five years through ten years		–		–		–		–
Maturing after ten years		–		–		–		–
Total	$	1,343	$	1,337		3.8		2.85	%
Mortgage-Backed Securities (a)
Maturing in one year or less	$	–	$	–		–		–	%
Maturing after one year through five years		–		–		–		–
Maturing after five years through ten years		23,977		22,825		9.1		2.22
Maturing after ten years		36,183		31,495		10.6		1.72
Total	$	60,160	$	54,320		10.0		1.92	%
Total held-to-maturity (d)	$	61,503	$	55,657		9.8		1.94	%
Available-for-sale
U.S. Treasury and Agencies
Maturing in one year or less	$	1,826	$	1,824		.3		1.96	%
Maturing after one year through five years		3,525		3,296		4.4		1.50
Maturing after five years through ten years		17,771		16,479		7.4		2.04
Maturing after ten years		2,657		2,168		11.8		1.99
Total	$	25,779	$	23,767		6.9		1.95	%
Mortgage-Backed Securities (a)
Maturing in one year or less	$	44	$	44		.7		2.67	%
Maturing after one year through five years		12,785		12,381		3.2		2.03
Maturing after five years through ten years		33,303		30,454		7.9		1.81
Maturing after ten years		25,412		22,437		10.6		2.11
Total	$	71,544	$	65,316		8.0		1.96	%
Obligations of State and Political Subdivisions (b) (c)
Maturing in one year or less	$	182	$	182		.3		4.63	%
Maturing after one year through five years		1,974		1,955		4.0		4.43
Maturing after five years through ten years		1,480		1,401		7.2		3.82
Maturing after ten years		7,289		6,178		16.9		3.36
Total	$	10,925	$	9,716		13.0		3.64	%
Other
Maturing in one year or less	$	–	$	–		–		–	%
Maturing after one year through five years		7		7		2.9		2.07
Maturing after five years through ten years		–		–		–		–
Maturing after ten years		–		–		–		–
Total	$	7	$	7		2.9		2.07	%
Total available-for-sale (d)	$	108,255	$	98,806		8.2		2.13	%

(a) Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future prepayments.

(b) Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to maturity if the security is purchased at par or a discount.

(c) Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity date for securities with a fair value equal to or below par.

(d) The weighted-average maturity of total held-to-maturity investment securities was 7.4 years at December 31, 2021, with a corresponding weighted-average yield of 1.45 percent. The weighted-average maturity of total available-for-sale investment securities was 5.5 years at December 31, 2021, with a corresponding weighted-average yield of 1.73 percent.

(e) Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent. Yields on investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity.

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Loans and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Loans and Allowance for Credit Losses

  Note  5    Loans and Allowance for Credit Losses

The composition of the loan portfolio, disaggregated by class and underlying specific portfolio type, was as follows:

	June 30, 2022					December 31, 2021
(Dollars in Millions)	Amount		Percent of Total			Amount		Percent of Total
Commercial
Commercial	$	121,130		36.4	%	$	106,912		34.3	%
Lease financing		4,853		1.5			5,111		1.6
Total commercial		125,983		37.9			112,023		35.9
Commercial Real Estate
Commercial mortgages		29,864		9.0			28,757		9.2
Construction and development		9,889		3.0			10,296		3.3
Total commercial real estate		39,753		12.0			39,053		12.5
Residential Mortgages
Residential mortgages		73,522		22.1			67,546		21.6
Home equity loans, first liens		8,592		2.6			8,947		2.9
Total residential mortgages		82,114		24.7			76,493		24.5
Credit Card		23,697		7.1			22,500		7.2
Other Retail
Retail leasing		6,490		2.0			7,256		2.3
Home equity and second mortgages		10,973		3.3			10,446		3.4
Revolving credit		2,764		.8			2,750		.9
Installment		16,656		5.0			16,514		5.3
Automobile		23,830		7.2			24,866		8.0
Student		109		–			127		–
Total other retail		60,822		18.3			61,959		19.9
Total loans	$	332,369		100.0	%	$	312,028		100.0	%

The Company had loans of $92.4 billion at June 30, 2022, and $92.1 billion at December 31, 2021, pledged at the Federal Home Loan Bank, and loans of $83.7 billion at June 30, 2022, and $76.9 billion at December 31, 2021, pledged at the Federal Reserve Bank.

Originated loans are reported at the principal amount outstanding, net of unearned interest and deferred fees and costs, and any partial charge-offs recorded. Net unearned interest and deferred fees and costs amounted to $364 million at June 30, 2022 and $475 million at December 31, 2021. All purchased loans are recorded at fair value at the date of purchase. The Company evaluates purchased loans for more-than-insignificant deterioration at the date of purchase in accordance with applicable authoritative accounting guidance. Purchased loans that have experienced more-than-insignificant deterioration from origination are considered purchased credit deteriorated loans. All other purchased loans are considered non-purchased credit deteriorated loans.

Allowance for Credit Losses The allowance for credit losses is established for current expected credit losses on the Company’s loan and lease portfolio, including unfunded credit commitments. The allowance considers expected losses for the remaining lives of the applicable assets, inclusive of expected recoveries. The allowance for credit losses is increased through provisions charged to earnings and reduced by net charge-offs. Management evaluates the appropriateness of the allowance for credit losses on a quarterly basis.

Multiple economic scenarios are considered over a three-year reasonable and supportable forecast period, which includes increasing consideration of historical loss experience over years two and three. These economic scenarios are constructed with interrelated projections of multiple economic variables, and loss estimates are produced that consider the historical correlation of those economic variables with credit losses. After the forecast period, the Company fully reverts to long-term historical loss experience, adjusted for prepayments and characteristics of the current loan and lease portfolio, to estimate losses over the remaining life of the portfolio. The economic scenarios are updated at least quarterly and are designed to provide a range of reasonable estimates, from better to worse than current expectations. Scenarios are weighted based on the Company’s expectation of economic conditions for the foreseeable future and reflect significant judgment and consideration of economic forecast uncertainty. Final loss estimates also consider factors affecting credit losses not reflected in the scenarios, due to the unique aspects of current conditions and expectations. These factors may include, but are not limited to, loan servicing practices, regulatory guidance, and/or fiscal and monetary policy actions.

The allowance recorded for credit losses utilizes forward-looking expected loss models to consider a variety of factors affecting lifetime credit losses. These factors include, but are not limited to, macroeconomic variables such as unemployment rates, real estate prices, gross domestic product levels and corporate bonds spreads, as well as loan and

borrower characteristics, such as internal risk ratings on commercial loans and consumer credit scores, delinquency status, collateral type and available valuation information, consideration of end-of-term losses on lease residuals, and the remaining term of the loan, adjusted for expected prepayments. For each loan portfolio, model estimates are adjusted as necessary to consider any relevant changes in portfolio composition, lending policies, underwriting standards, risk management practices, economic conditions or other factors that would affect the accuracy of the model. Expected credit loss estimates also include consideration of expected cash recoveries on loans previously charged-off or expected recoveries on collateral dependent loans where recovery is expected through sale of the collateral. Where loans do not exhibit similar risk characteristics, an individual analysis is performed to consider expected credit losses. The allowance recorded for individually evaluated loans greater than $5 million in the commercial lending segment is based on an analysis utilizing expected cash flows discounted using the original effective interest rate, the observable market price of the loan, or the fair value of the collateral, less selling costs, for collateral-dependent loans as appropriate.

The allowance recorded for Troubled Debt Restructuring (“TDR”) loans in the consumer lending segment is determined on a homogenous pool basis utilizing expected cash flows discounted using the original effective interest rate of the pool. The expected cash flows on TDR loans consider subsequent payment defaults since modification, the borrower’s ability to pay under the restructured terms, and the timing and amount of payments. The allowance for collateral-dependent loans in the consumer lending segment is determined based on the fair value of the collateral less costs to sell. For commercial TDRs individually evaluated for impairment, attributes of the borrower are the primary factors in determining the allowance for credit losses. For smaller commercial loans collectively evaluated for impairment, historical loss experience is also incorporated into the allowance methodology applied to this category of loans.

The Company’s methodology for determining the appropriate allowance for credit losses also considers the imprecision inherent in the methodologies used and allocated to the various loan portfolios. As a result, amounts determined under the methodologies described above, are adjusted by management to consider the potential impact of other qualitative factors not captured in the quantitative model adjustments which include, but are not limited to the following: model imprecision, imprecision in economic scenario assumptions, and emerging risks related to either changes in the environment that are affecting specific portfolios, or changes in portfolio concentrations over time that may affect model performance. The consideration of these items results in adjustments to allowance amounts included in the Company’s allowance for credit losses for each loan portfolio.

The Company also assesses the credit risk associated with off-balance sheet loan commitments, letters of credit, investment securities and derivatives. Credit risk associated with derivatives is reflected in the fair values recorded for those positions. The liability for off-balance sheet credit exposure related to loan commitments and other credit guarantees is included in other liabilities. Because business processes and credit risks associated with unfunded credit commitments are essentially the same as for loans, the Company utilizes similar processes to estimate its liability for unfunded credit commitments.

The results of the analysis are evaluated quarterly to confirm the estimates are appropriate for each specific loan portfolio, as well as the entire loan portfolio, as the entire allowance for credit losses is available for the entire loan portfolio.

Activity in the allowance for credit losses by portfolio class was as follows:

Three Months Ended June 30 (Dollars in Millions)	Commercial			Commercial Real Estate			Residential Mortgages			Credit Card			Other Retail			Total Loans
2022
Balance at beginning of period		$1,836			$1,074			$600			$1,639			$   956			$6,105
Add
Provision for credit losses		90			(95	)		49			225			42			311
Deduct
Loans charged-off		53			9			2			162			50			276
Less recoveries of loans charged-off		(23	)		(3	)		(11	)		(44	)		(34	)		(115	)
Net loan charge-offs (recoveries)		30			6			(9	)		118			16			161
Balance at end of period		$1,896			$   973			$658			$1,746			$   982			$6,255
2021
Balance at beginning of period		$1,932			$1,532			$539			$1,952			$1,005			$6,960
Add
Provision for credit losses		(67	)		(123	)		(71	)		87			4			(170	)
Deduct
Loans charged-off		58			4			5			192			55			314
Less recoveries of loans charged-off		(31	)		(4	)		(15	)		(44	)		(40	)		(134	)
Net loan charge-offs (recoveries)		27			–			(10	)		148			15			180
Balance at end of period		$1,838			$1,409			$478			$1,891			$   994			$6,610

Six Months Ended June 30 (Dollars in Millions)	Commercial			Commercial Real Estate			Residential Mortgages			Credit Card			Other Retail			Total Loans
2022
Balance at beginning of period		$1,849			$1,123			$565			$1,673			$   945			$6,155
Add
Provision for credit losses		109			(149	)		78			303			82			423
Deduct
Loans charged-off		108			10			7			320			111			556
Less recoveries of loans charged-off		(46	)		(9	)		(22	)		(90	)		(66	)		(233	)
Net loan charge-offs (recoveries)		62			1			(15	)		230			45			323
Balance at end of period		$1,896			$   973			$658			$1,746			$   982			$6,255
2021
Balance at beginning of period		$2,423			$1,544			$573			$2,355			$1,115			$8,010
Add
Provision for credit losses		(502	)		(142	)		(110	)		(172	)		(71	)		(997	)
Deduct
Loans charged-off		144			14			10			382			138			688
Less recoveries of loans charged-off		(61	)		(21	)		(25	)		(90	)		(88	)		(285	)
Net loan charge-offs (recoveries)		83			(7	)		(15	)		292			50			403
Balance at end of period		$1,838			$1,409			$478			$1,891			$   994			$6,610

The increase in the allowance for credit losses from December 31, 2021 to June 30, 2022 reflected strong loan growth and increased economic uncertainty, partially offset by stabilizing credit quality.

Credit Quality The credit quality of the Company’s loan portfolios is assessed as a function of net credit losses, levels of nonperforming assets and delinquencies, and credit quality ratings as defined by the Company.

For all loan portfolio classes, loans are considered past due based on the number of days delinquent except for monthly amortizing loans which are classified delinquent based upon the number of contractually required payments not made (for example, two missed payments is considered 30 days delinquent). When a loan is placed on nonaccrual status, unpaid accrued interest is reversed, reducing interest income in the current period.

Commercial lending segment loans are generally placed on nonaccrual status when the collection of principal and interest has become 90 days past due or is otherwise considered doubtful. Commercial lending segment loans are generally fully charged down if unsecured by collateral or partially charged down to the fair value of the collateral securing the loan, less costs to sell, when the loan is placed on nonaccrual.

Consumer lending segment loans are generally charged-off at a specific number of days or payments past due. Residential mortgages and other retail loans secured by 1-4 family properties are generally charged down to the fair value of the collateral securing the loan, less costs to sell, at 180 days past due. Residential mortgage loans and lines in a first lien position are placed on nonaccrual status in instances where a partial charge-off occurs unless the loan is well secured and in the process of collection. Residential mortgage loans and lines in a junior lien position secured by 1-4 family properties are placed on nonaccrual status at 120 days past due or when they are behind a first lien that has

become 180 days or greater past due or placed on nonaccrual status. Any secured consumer lending segment loan whose borrower has had debt discharged through bankruptcy, for which the loan amount exceeds the fair value of the collateral, is charged down to the fair value of the related collateral and the remaining balance is placed on nonaccrual status. Credit card loans continue to accrue interest until the account is charged-off. Credit cards are charged-off at 180 days past due. Other retail loans not secured by 1-4 family properties are charged-off at 120 days past due; and revolving consumer lines are charged-off at 180 days past due. Similar to credit cards, other retail loans are generally not placed on nonaccrual status because of the relative short period of time to charge-off. Certain retail customers having financial difficulties may have the terms of their credit card and other loan agreements modified to require only principal payments and, as such, are reported as nonaccrual.

For all loan classes, interest payments received on nonaccrual loans are generally recorded as a reduction to a loan’s carrying amount while a loan is on nonaccrual and are recognized as interest income upon payoff of the loan. However, interest income may be recognized for interest payments if the remaining carrying amount of the loan is believed to be collectible. In certain circumstances, loans in any class may be restored to accrual status, such as when a loan has demonstrated sustained repayment performance or no amounts are past due and prospects for future payment are no longer in doubt; or when the loan becomes well secured and is in the process of collection. Loans where there has been a partial charge-off may be returned to accrual status if all principal and interest (including amounts previously charged-off) is expected to be collected and the loan is current.

The following table provides a summary of loans by portfolio class, including the delinquency status of those that continue to accrue interest, and those that are nonperforming:

	Accruing
(Dollars in Millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Nonperforming (b)		Total
June 30, 2022
Commercial	$	125,490		$   254		$  91		$148		$125,983
Commercial real estate		39,519		24		4		206		39,753
Residential mortgages (a)		81,689		100		102		223		82,114
Credit card		23,333		200		164		–		23,697
Other retail		60,376		236		62		148		60,822
Total loans	$	330,407		$   814		$423		$725		$332,369
December 31, 2021
Commercial	$	111,270		$   530		$49		$174		$112,023
Commercial real estate		38,678		80		11		284		39,053
Residential mortgages (a)		75,962		124		181		226		76,493
Credit card		22,142		193		165		–		22,500
Other retail		61,468		275		66		150		61,959
Total loans	$	309,520		$1,202		$472		$834		$312,028

(a) At June 30, 2022, $642 million of loans 30–89 days past due and $1.7 billion of loans 90 days or more past due purchased and loans that could be purchased from Government National Mortgage Association (“GNMA”) mortgage pools under delinquent loan repurchase options whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current, compared with $791 million and $1.5 billion at December 31, 2021, respectively.

(b) Substantially all nonperforming loans at June 30, 2022 and December 31, 2021, had an associated allowance for credit losses. The Company recognized interest income on nonperforming loans of $5 million and $4 million for the three months ended June 30, 2022 and 2021, respectively, and $8 million and $7 million for the six months ended June 30, 2022 and 2021, respectively.

At June 30, 2022, the amount of foreclosed residential real estate held by the Company, and included in other real estate owned (“OREO”), was $23 million, compared with $22 million at December 31, 2021. These amounts excluded $40 million and $22 million at June 30, 2022 and December 31, 2021, respectively, of foreclosed residential real estate related to mortgage loans whose payments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. In addition, the amount of residential mortgage loans secured by residential real estate in the process of foreclosure at June 30, 2022 and December 31, 2021, was $1.1 billion and $696 million, respectively, of which $898 million and $555 million, respectively, related to loans purchased and loans that could be purchased from Government National Mortgage Association (“GNMA”) mortgage pools under delinquent loan repurchase options whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. 

The Company classifies its loan portfolio classes using internal credit quality ratings on a quarterly basis. These ratings include pass, special mention and classified, and are an important part of the Company’s overall credit risk management process and evaluation of the allowance for credit losses. Loans with a pass rating represent those loans not classified on the Company’s rating scale for problem credits, as minimal credit risk has been identified. Special mention loans are those loans that have a potential weakness deserving management’s close attention. Classified loans

are those loans where a well-defined weakness has been identified that may put full collection of contractual cash flows at risk. It is possible that others, given the same information, may reach different reasonable conclusions regarding the credit quality rating classification of specific loans.

The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating:

	June 30, 2022										December 31, 2021
			Criticized										Criticized
(Dollars in Millions)	Pass		Special Mention		Classified (a)		Total Criticized		Total		Pass		Special Mention		Classified (a)		Total Criticized		Total
Commercial
Originated in 2022		$  32,672		$     52		$   142		$   194		$  32,866		$          –		$       –		$       –		$         –		$          –
Originated in 2021		40,532		298		110		408		40,940		51,155		387		287		674		51,829
Originated in 2020		9,809		11		292		303		10,112		14,091		304		133		437		14,528
Originated in 2019		6,624		6		61		67		6,691		10,159		151		54		205		10,364
Originated in 2018		3,313		3		20		23		3,336		5,122		3		36		39		5,161
Originated prior to 2018		3,902		18		38		56		3,958		4,923		30		81		111		5,034
Revolving (b)		27,628		277		175		452		28,080		24,722		268		117		385		25,107
Total commercial		124,480		665		838		1,503		125,983		110,172		1,143		708		1,851		112,023
Commercial real estate
Originated in 2022		6,689		148		449		597		7,286		–		–		–		–		–
Originated in 2021		11,992		63		452		515		12,507		13,364		6		990		996		14,360
Originated in 2020		6,570		16		181		197		6,767		7,459		198		263		461		7,920
Originated in 2019		5,009		140		340		480		5,489		6,368		251		610		861		7,229
Originated in 2018		2,348		29		211		240		2,588		2,996		29		229		258		3,254
Originated prior to 2018		3,438		19		143		162		3,600		4,473		55		224		279		4,752
Revolving		1,511		–		5		5		1,516		1,494		1		43		44		1,538
Total commercial real estate		37,557		415		1,781		2,196		39,753		36,154		540		2,359		2,899		39,053
Residential mortgages (c)
Originated in 2022		12,396		–		–		–		12,396		–		–		–		–		–
Originated in 2021		29,446		–		3		3		29,449		29,882		–		3		3		29,885
Originated in 2020		14,384		–		10		10		14,394		15,948		1		8		9		15,957
Originated in 2019		5,834		–		24		24		5,858		6,938		–		36		36		6,974
Originated in 2018		2,383		–		18		18		2,401		2,889		–		30		30		2,919
Originated prior to 2018		17,328		–		288		288		17,616		20,415		–		342		342		20,757
Revolving		–		–		–		–		–		1		–		–		–		1
Total residential mortgages		81,771		–		343		343		82,114		76,073		1		419		420		76,493
Credit card (d)		23,532		–		165		165		23,697		22,335		–		165		165		22,500
Other retail
Originated in 2022		7,650		–		1		1		7,651		–		–		–		–		–
Originated in 2021		18,825		–		8		8		18,833		22,455		–		6		6		22,461
Originated in 2020		9,981		–		10		10		9,991		12,071		–		9		9		12,080
Originated in 2019		5,476		–		13		13		5,489		7,223		–		17		17		7,240
Originated in 2018		2,204		–		10		10		2,214		3,285		–		14		14		3,299
Originated prior to 2018		2,626		–		18		18		2,644		3,699		–		24		24		3,723
Revolving		13,381		–		113		113		13,494		12,532		–		112		112		12,644
Revolving converted to term		464		–		42		42		506		472		–		40		40		512
Total other retail		60,607		–		215		215		60,822		61,737		–		222		222		61,959
Total loans		$327,947		$1,080		$3,342		$4,422		$332,369		$306,471		$1,684		$3,873		$5,557		$312,028
Total outstanding commitments		$702,561		$2,021		$4,851		$6,872		$709,433		$662,363		$3,372		$5,684		$9,056		$671,419

Note: Year of origination is based on the origination date of a loan, or for existing loans the date when the maturity date, pricing or commitment amount is amended.

(a) Classified rating on consumer loans primarily based on delinquency status.

(b) Includes an immaterial amount of revolving converted to term loans.

(c) At June 30, 2022, $1.7 billion of GNMA loans 90 days or more past due and $965 million of restructured GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs were classified with a pass rating, compared with $1.5 billion and $1.1 billion at December 31, 2021, respectively.

(d) Predominately all credit card loans are considered revolving loans. Includes an immaterial amount of revolving converted to term loans.

Troubled Debt Restructurings In certain circumstances, the Company may modify the terms of a loan to maximize the collection of amounts due when a borrower is experiencing financial difficulties or is expected to experience difficulties in the near-term. Concessionary modifications are classified as TDRs unless the modification results in only an insignificant delay in payments to be received. The Company recognizes interest on TDRs if the borrower complies with the revised terms and conditions as agreed upon with the Company and has demonstrated repayment performance at a level commensurate with the modified terms over several payment cycles, which is generally six months or greater. To the extent a previous restructuring was insignificant, the Company considers the cumulative effect of past restructurings related to the receivable when determining whether a current restructuring is a TDR.

The following table provides a summary of loans modified as TDRs for the periods presented by portfolio class:

	2022						2021
(Dollars in Millions)	Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance		Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance
Three Months Ended June 30
Commercial		506		$     50		$  41		526		$     12		$     13
Commercial real estate		28		11		9		30		38		41
Residential mortgages		366		106		106		360		141		140
Credit card		8,696		48		49		5,050		31		31
Other retail		756		24		20		468		18		17
Total loans, excluding loans purchased from GNMA mortgage pools		10,352		239		225		6,434		240		242
Loans purchased from GNMA mortgage pools		353		47		50		478		67		69
Total loans		10,705		$   286		$275		6,912		$   307		$   311
Six Months Ended June 30
Commercial		1,015		$     88		$  73		1,230		$     87		$     73
Commercial real estate		37		22		19		86		124		112
Residential mortgages		1,206		334		332		696		245		244
Credit card		18,035		98		99		10,836		64		65
Other retail		1,484		61		57		1,793		55		49
Total loans, excluding loans purchased from GNMA mortgage pools		21,777		603		580		14,641		575		543
Loans purchased from GNMA mortgage pools		743		102		105		1,037		154		158
Total loans		22,520		$   705		$685		15,678		$   729		$   701

Residential mortgages, home equity and second mortgages, and loans purchased from GNMA mortgage pools in the table above include trial period arrangements offered to customers during the periods presented. The post-modification balances for these loans reflect the current outstanding balance until a permanent modification is made. In addition, the post-modification balances typically include capitalization of unpaid accrued interest and/or fees under the various modification programs. At June 30, 2022, 8 residential mortgages, 8 home equity and second mortgage loans and 97 loans purchased from GNMA mortgage pools with outstanding balances of less than $1 million, less than $1 million and $13 million, respectively, were in a trial period and have estimated post-modification balances of less than $1 million, less than $1 million and $14 million, respectively, assuming permanent modification occurs at the end of the trial period.

The Company has implemented certain restructuring programs that may result in TDRs. However, many of the Company’s TDRs are also determined on a case-by-case basis in connection with ongoing loan collection processes.

For the commercial lending segment, modifications generally result in the Company working with borrowers on a case-by-case basis. Commercial and commercial real estate modifications generally include extensions of the maturity date and may be accompanied by an increase or decrease to the interest rate, which may not be deemed a market interest rate. In addition, the Company may work with the borrower in identifying other changes that mitigate loss to the Company, which may include additional collateral or guarantees to support the loan. To a lesser extent, the Company may waive contractual principal. The Company classifies all of the above concessions as TDRs to the extent the Company determines that the borrower is experiencing financial difficulty.

Modifications for the consumer lending segment are generally part of programs the Company has initiated. The Company modifies residential mortgage loans under Federal Housing Administration, United States Department of Veterans Affairs, or its own internal programs. Under these programs, the Company offers qualifying homeowners the opportunity to permanently modify their loan and achieve more affordable monthly payments by providing loan concessions. These concessions may include adjustments to interest rates, conversion of adjustable rates to fixed rates, extension of maturity dates or deferrals of payments, capitalization of accrued interest and/or outstanding advances, or in limited situations, partial forgiveness of loan principal. In most instances, participation in residential mortgage loan restructuring programs requires the customer to complete a short-term trial period. A permanent loan modification is contingent on the customer successfully completing the trial period arrangement, and the loan documents are not modified until that time. The Company reports loans in a trial period arrangement as TDRs and continues to report them as TDRs after the trial period.

Credit card and other retail loan TDRs are generally part of distinct restructuring programs providing customers experiencing financial difficulty with modifications whereby balances may be amortized up to 60 months, and generally include waiver of fees and reduced interest rates.

In addition, the Company considers secured loans to consumer borrowers that have debt discharged through bankruptcy where the borrower has not reaffirmed the debt to be TDRs.

The following table provides a summary of TDR loans that defaulted (fully or partially charged-off or became 90 days or more past due) for the periods presented, that were modified as TDRs within 12 months previous to default:

	2022				2021
(Dollars in Millions)	Number of Loans		Amount Defaulted		Number of Loans		Amount Defaulted
Three Months Ended June 30
Commercial		175		$  3		327		$    8
Commercial real estate		2		1		5		1
Residential mortgages		79		7		12		1
Credit card		1,727		9		1,805		11
Other retail		60		1		191		3
Total loans, excluding loans purchased from GNMA mortgage pools		2,043		21		2,340		24
Loans purchased from GNMA mortgage pools		120		17		43		6
Total loans		2,163		$38		2,383		$  30
Six Months Ended June 30
Commercial		389		$  6		612		$  24
Commercial real estate		5		2		12		6
Residential mortgages		113		10		27		3
Credit card		3,361		18		3,569		20
Other retail		143		2		471		8
Total loans, excluding loans purchased from GNMA mortgage pools		4,011		38		4,691		61
Loans purchased from GNMA mortgage pools		169		25		73		10
Total loans		4,180		$63		4,764		$  71

In addition to the defaults in the table above, the Company had a total of 12 and 28 residential mortgage loans, home equity and second mortgage loans and loans purchased from GNMA mortgage pools for the three months and six months ended June 30, 2022, respectively, where borrowers did not successfully complete the trial period arrangement and, therefore, are no longer eligible for a permanent modification under the applicable modification program. These loans had aggregate outstanding balances of $2 million and $4 million for the three months and six months ended June 30, 2022, respectively.

As of June 30, 2022, the Company had $112 million of commitments to lend additional funds to borrowers whose terms of their outstanding owed balances have been modified in TDRs.

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Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities

 Note 6    Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities

The Company transfers financial assets in the normal course of business. The majority of the Company’s financial asset transfers are residential mortgage loan sales primarily to government-sponsored enterprises (“GSEs”), transfers of tax-advantaged investments, commercial loan sales through participation agreements, and other individual or portfolio loan and securities sales. In accordance with the accounting guidance for asset transfers, the Company considers any ongoing involvement with transferred assets in determining whether the assets can be derecognized from the balance sheet. Guarantees provided to certain third parties in connection with the transfer of assets are further discussed in Note 16.

For loans sold under participation agreements, the Company also considers whether the terms of the loan participation agreement meet the accounting definition of a participating interest. With the exception of servicing and certain performance-based guarantees, the Company’s continuing involvement with financial assets sold is minimal and generally limited to market customary representation and warranty clauses. Any gain or loss on sale depends on the previous carrying amount of the transferred financial assets, the consideration received, and any liabilities incurred in exchange for the transferred assets. Upon transfer, any servicing assets and other interests that continue to be held by the Company are initially recognized at fair value. For further information on mortgage servicing rights (“MSRs”), refer to Note 7. On a limited basis, the Company may acquire and package high-grade corporate bonds for select corporate customers, in which the Company generally has no continuing involvement with these transactions. Additionally, the Company is an authorized GNMA issuer and issues GNMA securities on a regular basis. The Company has no other asset securitizations or similar asset-backed financing arrangements that are off-balance sheet.

The Company also provides financial support primarily through the use of waivers of trust and investment management fees associated with various unconsolidated registered money market funds it manages. The Company provided $7 million and $70 million of support to the funds during the three months ended June 30, 2022 and 2021, respectively, and $65 million and $117 million during the six months ended June 30, 2022 and 2021, respectively.

The Company is involved in various entities that are considered to be variable interest entities (“VIEs”). The Company’s investments in VIEs are primarily related to investments promoting affordable housing, community development and renewable energy sources. Some of these tax-advantaged investments support the Company’s regulatory compliance with the Community Reinvestment Act. The Company’s investments in these entities generate a return primarily through the realization of federal and state income tax credits, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These tax credits are recognized as a reduction of tax expense or, for investments qualifying as investment tax credits, as a reduction to the related investment asset. The Company recognized federal and state income tax credits related to its affordable housing and other tax-advantaged investments in tax expense of $112 million and $110 million for the three months ended June 30, 2022 and 2021, respectively, and $225 million and $243 million for the six months ended June 30, 2022 and 2021, respectively. The Company also recognized $162 million and $123 million of investment tax credits for the three months ended June 30, 2022 and 2021, respectively, and $175 million and $160 million for the six months ended June 30, 2022 and 2021, respectively. The Company recognized $106 million of expenses related to all of these investments for both the three months ended June 30, 2022 and 2021, of which $92 million and $87 million, respectively, were included in tax expense and the remaining amounts were included in noninterest expense. The Company recognized $208 million and $232 million of expenses related to all of these investments for the six months ended June 30, 2022 and 2021, respectively, of which $183 million and $179 million, respectively, were included in tax expense and the remaining amounts were included in noninterest expense.

The Company is not required to consolidate VIEs in which it has concluded it does not have a controlling financial interest, and thus is not the primary beneficiary. In such cases, the Company does not have both the power to direct the entities’ most significant activities and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs.

The Company’s investments in these unconsolidated VIEs are carried in other assets on the Consolidated Balance Sheet. The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are generally carried in other liabilities on the Consolidated Balance Sheet. The Company’s maximum exposure to loss from these unconsolidated VIEs include the investment recorded on the Company’s Consolidated Balance Sheet, net of unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. While the Company believes potential losses from these investments are remote, the maximum exposure was determined by assuming a scenario where the community-based business and housing projects completely fail and do not meet certain government compliance requirements resulting in recapture of the related tax credits.

The following table provides a summary of investments in community development and tax-advantaged VIEs that the Company has not consolidated:

(Dollars in Millions)	June 30, 2022		December 31, 2021
Investment carrying amount	$	4,999	$	4,484
Unfunded capital and other commitments		2,210		1,890
Maximum exposure to loss		9,872		9,899

The Company also has noncontrolling financial investments in private investment funds and partnerships considered to be VIEs, which are not consolidated. The Company’s recorded investment in these entities, carried in other assets on the Consolidated Balance Sheet, was approximately $46 million at June 30, 2022 and $40 million at December 31, 2021. The maximum exposure to loss related to these VIEs was $87 million at June 30, 2022 and $84 million at December 31, 2021, representing the Company’s investment balance and its unfunded commitments to invest additional amounts.

The Company’s individual net investments in unconsolidated VIEs, which exclude any unfunded capital commitments, ranged from less than $1 million to $105 million at June 30, 2022, compared with less than $1 million to $75 million at December 31, 2021.

The Company is required to consolidate VIEs in which it has concluded it has a controlling financial interest. The Company sponsors entities to which it transfers its interests in tax-advantaged investments to third parties. At June 30, 2022, approximately $4.9 billion of the Company’s assets and $3.3 billion of its liabilities included on the Consolidated Balance Sheet were related to community development and tax-advantaged investment VIEs which the Company has consolidated, primarily related to these transfers. These amounts compared to $5.0 billion and $3.4 billion, respectively, at December 31, 2021. The majority of the assets of these consolidated VIEs are reported in other assets, and the liabilities are reported in long-term debt and other liabilities. The assets of a particular VIE are the primary source of funds to settle its obligations. The creditors of the VIEs do not have recourse to the general credit of the Company. The Company’s exposure to the consolidated VIEs is generally limited to the carrying value of its variable interests plus any related tax credits previously recognized or transferred to others with a guarantee.

In addition, the Company sponsors a municipal bond securities tender option bond program. The Company controls the activities of the program’s entities, is entitled to the residual returns and provides liquidity and remarketing arrangements to the program. As a result, the Company has consolidated the program’s entities. At June 30, 2022, $1.5 billion of available-for-sale investment securities and $1.2 billion of short-term borrowings on the Consolidated Balance Sheet were related to the tender option bond program, compared with $1.7 billion of available-for-sale investment securities and $1.2 billion of short-term borrowings at December 31, 2021.

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Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2022

Text Block [Abstract]

Mortgage Servicing Rights

 Note 7    Mortgage Servicing Rights

The Company capitalizes MSRs as separate assets when loans are sold and servicing is retained. MSRs may also be purchased from others. The Company carries MSRs at fair value, with changes in the fair value recorded in earnings during the period in which they occur. The Company serviced $226.4 billion of residential mortgage loans for others at June 30, 2022, and $222.4 billion at December 31, 2021, including subserviced mortgages with no corresponding MSR asset. Included in mortgage banking revenue are the MSR fair value changes arising from market rate and model assumption changes, net of the value change in derivatives used to economically hedge MSRs. These changes resulted in net gains of $13 million and net losses of $27 million for the three months ended June 30, 2022 and 2021, respectively, and net losses of $16 million and $147 million for the six months ended June 30, 2022 and 2021, respectively. Loan servicing and ancillary fees, not including valuation changes, included in mortgage banking revenue were $186 million and $178 million for the three months ended June 30, 2022 and 2021 respectively, and $371 million and $353 million for the six months ended June 30, 2022 and 2021, respectively.

Changes in fair value of capitalized MSRs are summarized as follows:

	Three Months Ended June 30						Six Months Ended June 30
(Dollars in Millions)	2022			2021			2022			2021
Balance at beginning of period	$	3,432		$	2,787		$	2,953		$	2,210
Rights purchased		3			11			6			27
Rights capitalized		102			293			339			612
Rights sold (a)		—			1			1			1
Changes in fair value of MSRs
Due to fluctuations in market interest rates (b)		289			(232	)		657			254
Due to revised assumptions or models (c)		6			(37	)		(21	)		(139	)
Other changes in fair value (d)		(125	)		(110	)		(228	)		(252	)
Balance at end of period	$	3,707		$	2,713		$	3,707		$	2,713

(a) MSRs sold include those having a negative fair value, resulting from the loans being severely delinquent.

(b) Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits.

(c) Includes changes in MSR value not caused by changes in market interest rates, such as changes in assumed cost to service, ancillary income and option adjusted spread, as well as the impact of any model changes.

(d) Primarily the change in MSR value from passage of time and cash flows realized (decay), but also includes the impact of changes to expected cash flows not associated with changes in market interest rates, such as the impact of delinquencies.

The estimated sensitivity to changes in interest rates of the fair value of the MSR portfolio and the related derivative instruments was as follows:

	June 30, 2022												December 31, 2021
(Dollars in Millions)	Down 100 bps		Down 50 bps		Down 25 bps		Up 25 bps		Up 50 bps		Up 100 bps		Down 100 bps		Down 50 bps		Down 25 bps		Up 25 bps		Up 50 bps		Up 100 bps
MSR portfolio	$	(380)	$	(172)	$	(81)	$	71	$	133	$	231	$	(636)	$	(324)	$	(160)	$	150	$	287	$	511
Derivative instrument hedges		371		170		81		(73)		(141)		(261)		614		309		152		(142)		(278)		(536)
Net sensitivity	$	(9)	$	(2)	$	—	$	(2)	$	(8)	$	(30)	$	(22)	$	(15)	$	(8)	$	8	$	9	$	(25)

The fair value of MSRs and their sensitivity to changes in interest rates is influenced by the mix of the servicing portfolio and characteristics of each segment of the portfolio. The Company’s servicing portfolio consists of the distinct portfolios of government-insured mortgages, conventional mortgages and Housing Finance Agency (“HFA”) mortgages. The servicing portfolios are predominantly comprised of fixed-rate agency loans with limited adjustable-rate or jumbo mortgage loans. The HFA servicing portfolio is comprised of loans originated under state and local housing authority program guidelines which assist purchases by first-time or low- to moderate-income homebuyers through a favorable rate subsidy, down payment and/or closing cost assistance on government- and conventional-insured mortgages.

A summary of the Company’s MSRs and related characteristics by portfolio was as follows:

	June 30, 2022												December 31, 2021
(Dollars in Millions)	HFA			Government			Conventional (d)			Total			HFA			Government			Conventional (d)			Total
Servicing portfolio (a)	$	41,701		$	21,358		$	159,657		$	222,716		$	40,652		$	21,919		$	156,382		$	218,953
Fair value	$	697		$	403		$	2,607		$	3,707		$	527		$	308		$	2,118		$	2,953
Value (bps) (b)		167			189			163			166			130			141			135			135
Weighted-average servicing fees (bps)		36			41			30			32			36			41			30			32
Multiple (value/servicing fees)		4.65			4.59			5.41			5.15			3.63			3.43			4.50			4.18
Weighted-average note rate		4.02	%		3.67	%		3.40	%		3.54	%		4.07	%		3.70	%		3.41	%		3.56	%
Weighted-average age (in years)		3.9			6.0			3.5			3.8			3.8			5.9			3.3			3.7
Weighted-average expected prepayment (constant prepayment rate)		7.5	%		8.5	%		6.5	%		6.9	%		11.5	%		13.2	%		9.6	%		10.3	%
Weighted-average expected life (in years)		8.6			7.4			8.2			8.2			6.5			5.6			6.9			6.7
Weighted-average option adjusted spread (c)		7.2	%		6.9	%		5.9	%		6.2	%		7.3	%		7.3	%		6.3	%		6.6	%

(a) Represents principal balance of mortgages having corresponding MSR asset.

(b) Calculated as fair value divided by the servicing portfolio.

(c) Option adjusted spread is the incremental spread added to the risk-free rate to reflect optionality and other risk inherent in the MSRs.

(d) Represents loans sold primarily to GSEs.

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Preferred Stock

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Preferred Stock

 Note 8     Preferred Stock

At June 30, 2022 and December 31, 2021, the Company had authority to issue 50 million shares of preferred stock. The number of shares issued and outstanding and the carrying amount of each outstanding series of the Company’s preferred stock were as follows:

	June 30, 2022								December 31, 2021
(Dollars in Millions)	Shares Issued and Outstanding		Liquidation Preference		Discount		Carrying Amount		Shares Issued and Outstanding		Liquidation Preference		Discount		Carrying Amount
Series A		12,510	$	1,251	$	145	$	1,106		12,510	$	1,251	$	145	$	1,106
Series B		40,000		1,000		—		1,000		40,000		1,000		—		1,000
Series J		40,000		1,000		7		993		40,000		1,000		7		993
Series K		23,000		575		10		565		23,000		575		10		565
Series L		20,000		500		14		486		20,000		500		14		486
Series M		30,000		750		21		729		30,000		750		21		729
Series N		60,000		1,500		8		1,492		60,000		1,500		8		1,492
Series O		18,000		450		13		437		—		—		—		—
Total preferred stock (a)		243,510	$	7,026	$	218	$	6,808		225,510	$	6,576	$	205	$	6,371

(a) The par value of all shares issued and outstanding at June 30, 2022 and December 31, 2021, was $1.00 per share.

During the first six months of 2022, the Company issued depositary shares representing an ownership interest in 18,000 shares of Series O Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $25,000 per share (the “Series O Preferred Stock”). The Series O Preferred Stock has no stated maturity and will not be subject to

any sinking fund or other obligation of the Company. Dividends, if declared, will accrue and be payable quarterly, in arrears, at a rate per annum equal to 4.50 percent. The Series O Preferred Stock is redeemable at the Company’s option, in whole or in part, on or after April 15, 2027. The Series O Preferred Stock is redeemable at the Company’s option, in whole, but not in part, prior to April 15, 2027 within 90 days following an official administrative or judicial decision, amendment to, or change in the laws or regulations that would not allow the Company to treat the full liquidation value of the Series O Preferred Stock as Tier 1 capital for purposes of the capital adequacy guidelines of the Federal Reserve Board.

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

 Note 9     Accumulated Other Comprehensive Income (Loss)

Shareholders’ equity is affected by transactions and valuations of asset and liability positions that require adjustments to accumulated other comprehensive income (loss). The reconciliation of the transactions affecting accumulated other comprehensive income (loss) included in shareholders’ equity is as follows:

Three Months Ended June 30 (Dollars in Millions)	Unrealized Gains (Losses) on Investment Securities Available-For- Sale			Unrealized Gains (Losses) on Investment Securities Transferred From Available- For-Sale to Held-To-Maturity			Unrealized Gains (Losses) on Derivative Hedges			Unrealized Gains (Losses) on Retirement Plans			Foreign Currency Translation			Total
2022
Balance at beginning of period	$	(4,518	)	$	(904	)	$	(77	)	$	(1,402	)	$	(37	)	$	(6,938	)
Changes in unrealized gains (losses)		(4,761	)		—			98			—			—			(4,663	)
Transfer of securities from available-for-sale to held-to-maturity		1,381			(1,381	)		—			—			—			—
Foreign currency translation adjustment (a)		—			—			—			—			(3	)		(3	)
Reclassification to earnings of realized (gains) losses		(19	)		61			10			32			—			84
Applicable income taxes		859			334			(27	)		(8	)		1			1,159
Balance at end of period	$	(7,058	)	$	(1,890	)	$	4		$	(1,378	)	$	(39	)	$	(10,361	)
2021
Balance at beginning of period	$	(125	)	$	—		$	(112	)	$	(1,813	)	$	(45	)	$	(2,095	)
Changes in unrealized gains (losses)		1,195			—			14			—			—			1,209
Foreign currency translation adjustment (a)		—			—			—			—			(1	)		(1	)
Reclassification to earnings of realized (gains) losses		(43	)		—			(8	)		40			—			(11	)
Applicable income taxes		(292	)		—			(1	)		(10	)		(1	)		(304	)
Balance at end of period	$	735		$	—		$	(107	)	$	(1,783	)	$	(47	)	$	(1,202	)

(a) Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges.

Six Months Ended June 30 (Dollars in Millions)	Unrealized Gains (Losses) on Investment Securities Available-For- Sale			Unrealized Gains (Losses) on Investment Securities Transferred From Available- For-Sale to Held-To-Maturity			Unrealized Gains (Losses) on Derivative Hedges			Unrealized Gains (Losses) on Retirement Plans			Foreign Currency Translation			Total
2022
Balance at beginning of period	$	540		$	(935	)	$	(85	)	$	(1,426	)	$	(37	)	$	(1,943	)
Changes in unrealized gains (losses)		(11,515	)		—			98			—			—			(11,417	)
Transfer of securities from available-for-sale to held-to-maturity		1,381			(1,381	)		—			—			—			—
Foreign currency translation adjustment (a)		—			—			—			—			(3	)		(3	)
Reclassification to earnings of realized (gains) losses		(37	)		103			21			64			—			151
Applicable income taxes		2,573			323			(30	)		(16	)		1			2,851
Balance at end of period	$	(7,058	)	$	(1,890	)	$	4		$	(1,378	)	$	(39	)	$	(10,361	)
2021
Balance at beginning of period	$	2,417		$	—		$	(189	)	$	(1,842	)	$	(64	)	$	322
Changes in unrealized gains (losses)		(2,183	)		—			113			—			—			(2,070	)
Foreign currency translation adjustment (a)		—			—			—			—			24			24
Reclassification to earnings of realized (gains) losses		(68	)		—			(4	)		79			—			7
Applicable income taxes		569			—			(27	)		(20	)		(7	)		515
Balance at end of period	$	735		$	—		$	(107	)	$	(1,783	)	$	(47	)	$	(1,202	)

(a) Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges.

Additional detail about the impact to net income for items reclassified out of accumulated other comprehensive income (loss) and into earnings is as follows:

	Impact to Net Income												Affected Line Item in the Consolidated Statement of Income
	Three Months Ended June 30						Six Months Ended June 30
(Dollars in Millions)	2022			2021			2022			2021
Unrealized gains (losses) on investment securities available-for-sale
Realized gains (losses) on sale of investment securities	$	19		$	43		$	37		$	68		Securities gains (losses), net
		(5	)		(11)			(9)			(17)		Applicable income taxes
		14			32			28			51		Net-of-tax
Unrealized gains (losses) on investment securities transferred from available-for-sale to held-to-maturity
Amortization of unrealized gains		(61	)		—			(103	)		—		Interest income
		16			—			26			—		Applicable income taxes
		(45	)		—			(77)			—		Net-of-tax
Unrealized gains (losses) on derivative hedges
Realized gains (losses) on derivative hedges		(10	)		8			(21	)		4		Interest expense
		2			(2)			5			(1)		Applicable income taxes
		(8)			6			(16)			3		Net-of-tax
Unrealized gains (losses) on retirement plans
Actuarial gains (losses) and prior service cost (credit) amortization		(32	)		(40	)		(64	)		(79	)	Other noninterest expense
		8			10			16			20		Applicable income taxes
		(24)			(30)			(48)			(59)		Net-of-tax
Total impact to net income	$	(63	)	$	8		$	(113	)	$	(5)

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Earnings Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share

 Note 10    Earnings Per Share

The components of earnings per share were:

	Three Months Ended June 30						Six Months Ended June 30
(Dollars and Shares in Millions, Except Per Share Data)	2022			2021			2022			2021
Net income attributable to U.S. Bancorp	$	1,531		$	1,982		$	3,088		$	4,262
Preferred dividends		(59	)		(58	)		(143	)		(148	)
Impact of preferred stock call (a)		—			—			—			(5	)
Earnings allocated to participating stock awards		(8	)		(10	)		(15	)		(20	)
Net income applicable to U.S. Bancorp common shareholders	$	1,464		$	1,914		$	2,930		$	4,089
Average common shares outstanding		1,486			1,489			1,485			1,495
Net effect of the exercise and assumed purchase of stock awards		1			1			1			2
Average diluted common shares outstanding		1,487			1,490			1,486			1,497
Earnings per common share	$	.99		$	1.29		$	1.97		$	2.73
Diluted earnings per common share	$	.99		$	1.28		$	1.97		$	2.73

(a) Represents stock issuance costs originally recorded in preferred stock upon issuance of the Company’s Series I Preferred Stock that were reclassified to retained earnings on the date the Company announced its intent to redeem the outstanding shares.

Options outstanding at June 30, 2022, to purchase 1 million common shares for the three months and six months ended June 30, 2022, and outstanding at June 30, 2021, to purchase 1 million common shares for the six months ended June 30, 2021 were not included in the computation of diluted earnings per share because they were antidilutive.

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Employee Benefits

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Employee Benefits

 Note 11    Employee Benefits

The components of net periodic benefit cost for the Company’s retirement plans were:

	Three Months Ended June 30												Six Months Ended June 30
	Pension Plans						Postretirement Welfare Plan						Pension Plans						Postretirement Welfare Plan
(Dollars in Millions)	2022			2021			2022			2021			2022			2021			2022			2021
Service cost	$	68		$	66		$	—		$	—		$	137		$	132		$	—		$	—
Interest cost		62			55			—			—			123			110			—			—
Expected return on plan assets		(120	)		(113	)		—			—			(239	)		(225	)		—			—
Prior service cost (credit) amortization		—			(1	)		(2	)		(1	)		(1	)		(1	)		(2	)		(2	)
Actuarial loss (gain) amortization		35			43			(1	)		(1	)		70			85			(3	)		(3	)
Net periodic benefit cost (a)	$	45		$	50		$	(3	)	$	(2	)	$	90		$	101		$	(5	)	$	(5	)

(a) Service cost is included in employee benefits expense on the Consolidated Statement of Income. All other components are included in other noninterest expense on the Consolidated Statement of Income.

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Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 12    Income Taxes

The components of income tax expense were:

	Three Months Ended June 30					Six Months Ended June 30
(Dollars in Millions)	2022			2021		2022		2021
Federal
Current	$	221		$	350	$	625	$	703
Deferred		107			76		5		206
Federal income tax		328			426		630		909
State
Current		89			109		178		203
Deferred		(3	)		16		3		46
State income tax		86			125		181		249
Total income tax provision	$	414		$	551	$	811	$	1,158

A reconciliation of expected income tax expense at the federal statutory rate of 21 percent to the Company’s applicable income tax expense follows:

	Three Months Ended June 30						Six Months Ended June 30
(Dollars in Millions)	2022			2021			2022			2021
Tax at statutory rate	$	409		$	533		$	820		$	1,140
State income tax, at statutory rates, net of federal tax benefit		84			105			168			219
Tax effect of
Tax credits and benefits, net of related expenses		(46	)		(83	)		(152	)		(176	)
Tax-exempt income		(29	)		(29	)		(57	)		(57	)
Other items		(4	)		25			32			32
Applicable income taxes	$	414		$	551		$	811		$	1,158

The Company’s income tax returns are subject to review and examination by federal, state, local and foreign government authorities. On an ongoing basis, numerous federal, state, local and foreign examinations are in progress and cover multiple tax years. As of June 30, 2022, federal tax examinations for all years ending through December 31, 2014 are completed and resolved. The Company’s tax returns for the years ended December 31, 2015 through December 31, 2020 are under examination by the Internal Revenue Service. The years open to examination by foreign, state and local government authorities vary by jurisdiction.

The Company’s net deferred tax asset was $3.6 billion at June 30, 2022 and $785 million at December 31, 2021.

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Derivative Instruments

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

 Note 13    Derivative Instruments

In the ordinary course of business, the Company enters into derivative transactions to manage various risks and to accommodate the business requirements of its customers. The Company recognizes all derivatives on the Consolidated Balance Sheet at fair value in other assets or in other liabilities. On the date the Company enters into a derivative contract, the derivative is designated as either a fair value hedge, cash flow hedge, net investment hedge, or a designation is not made as it is a customer-related transaction, an economic hedge for asset/liability risk management purposes or another stand-alone derivative created through the Company’s operations (“free-standing derivative”). When a derivative is designated as a fair value, cash flow or net investment hedge, the Company performs an assessment, at inception and, at a minimum, quarterly thereafter, to determine the effectiveness of the derivative in offsetting changes in the value or cash flows of the hedged item(s).

Fair Value Hedges These derivatives are interest rate swaps the Company uses to hedge the change in fair value related to interest rate changes of its underlying available-for-sale investment securities and fixed-rate debt. Changes in the fair value of derivatives designated as fair value hedges, and changes in the fair value of the hedged items, are recorded in earnings.

Cash Flow Hedges These derivatives are interest rate swaps the Company uses to hedge the forecasted cash flows from its underlying variable-rate loans and debt. Changes in the fair value of derivatives designated as cash flow hedges are recorded in other comprehensive income (loss) until the cash flows of the hedged items are realized. If a derivative designated as a cash flow hedge is terminated or ceases to be highly effective, the gain or loss in other comprehensive income (loss) is amortized to earnings over the period the forecasted hedged transactions impact earnings. If a hedged

forecasted transaction is no longer probable, hedge accounting is ceased and any gain or loss included in other comprehensive income (loss) is reported in earnings immediately, unless the forecasted transaction is at least reasonably possible of occurring, whereby the amounts remain within other comprehensive income (loss). At June 30, 2022, the Company had $4 million (net-of-tax) of realized and unrealized gains on derivatives classified as cash flow hedges recorded in other comprehensive income (loss), compared with $85 million (net-of-tax) of realized and unrealized losses at December 31, 2021. The estimated amount to be reclassified from other comprehensive income (loss) into earnings during the next 12 months is a loss of $15 million (net-of-tax). All cash flow hedges were highly effective for the three months ended June 30, 2022. There were no derivatives held as cash flow hedges at December 31, 2021.

Net Investment Hedges The Company uses forward commitments to sell specified amounts of certain foreign currencies, and non-derivative debt instruments, to hedge the volatility of its net investment in foreign operations driven by fluctuations in foreign currency exchange rates. The carrying amount of non-derivative debt instruments designated as net investment hedges was $1.2 billion at June 30, 2022, compared with $1.3 billion at December 31, 2021.

Other Derivative Positions The Company enters into free-standing derivatives to mitigate interest rate risk and for other risk management purposes. These derivatives include forward commitments to sell to-be-announced securities (“TBAs”) and other commitments to sell residential mortgage loans, which are used to economically hedge the interest rate risk related to mortgage loans held for sale (“MLHFS”) and unfunded mortgage loan commitments. The Company also enters into interest rate swaps, swaptions, forward commitments to buy TBAs, U.S. Treasury and Eurodollar futures and options on U.S. Treasury futures to economically hedge the change in the fair value of the Company’s MSRs. The Company also enters into foreign currency forwards to economically hedge remeasurement gains and losses the Company recognizes on foreign currency denominated assets and liabilities. In addition, the Company acts as a seller and buyer of interest rate derivatives and foreign exchange contracts for its customers. The Company mitigates the market and liquidity risk associated with these customer derivatives by entering into similar offsetting positions with broker-dealers, or on a portfolio basis by entering into other derivative or non-derivative financial instruments that partially or fully offset the exposure to earnings from these customer-related positions. The Company’s customer derivatives and related hedges are monitored and reviewed by the Company’s Market Risk Committee, which establishes policies for market risk management, including exposure limits for each portfolio. The Company also has derivative contracts that are created through its operations, including certain unfunded mortgage loan commitments and swap agreements related to the sale of a portion of its Class B common and preferred shares of Visa Inc. Refer to Note 15 for further information on these swap agreements.

The following table summarizes the asset and liability management derivative positions of the Company:

	June 30, 2022						December 31, 2021
	Notional Value		Fair Value				Notional Value		Fair Value
(Dollars in Millions)			Assets		Liabilities				Assets		Liabilities
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	17,400	$	—	$	—	$	12,350	$	—	$	—
Pay fixed/receive floating swaps		3,820		—		—		16,650		—		—
Cash flow hedges
Interest rate contracts
Receive fixed/pay floating swaps		8,300		—		—		—		—		—
Net investment hedges
Foreign exchange forward contracts		805		6		1		793		—		4
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		11,040		30		63		9,322		10		16
Sell		9,811		34		31		29,348		25		27
Options
Purchased		7,480		260		—		18,570		256		—
Written		7,208		20		93		9,662		52		231
Receive fixed/pay floating swaps		11,420		—		—		9,653		—		—
Pay fixed/receive floating swaps		12,481		—		—		7,033		—		—
Foreign exchange forward contracts		852		5		2		735		2		6
Equity contracts		186		4		—		209		5		—
Other (a)		2,344		2		81		1,792		—		125
Total	$	93,147	$	361	$	271	$	116,117	$	350	$	409

(a) Includes derivative liability swap agreements related to the sale of a portion of the Company’s Class B common and preferred shares of Visa Inc. The Visa swap agreements had a total notional value and fair value of $1.8 billion and $79 million at June 30, 2022, respectively, compared to $1.8 billion and $125 million at December 31, 2021, respectively. In addition, includes short-term underwriting purchase and sale commitments with total notional values of $565 million at June 30, 2022, and $8 million at December 31, 2021.

The following table summarizes the customer-related derivative positions of the Company:

	June 30, 2022						December 31, 2021
	Notional Value		Fair Value				Notional Value		Fair Value
(Dollars in Millions)			Assets		Liabilities				Assets		Liabilities
Interest rate contracts
Receive fixed/pay floating swaps	$	204,454	$	458	$	3,125	$	178,701	$	2,007	$	438
Pay fixed/receive floating swaps		193,869		1,308		214		174,176		134		670
Other (a)		19,451		1		3		16,267		1		2
Options
Purchased		90,183		993		5		89,679		194		36
Written		87,585		6		979		85,211		36		176
Futures
Buy		475		—		—		3,607		—		—
Sell		4,928		—		—		3,941		—		—
Foreign exchange rate contracts
Forwards, spots and swaps		95,611		2,222		2,239		89,321		1,145		1,143
Options
Purchased		861		39		—		805		19		—
Written		861		—		39		805		—		19
Credit contracts		9,152		1		6		9,331		1		5
Total	$	707,430	$	5,028	$	6,610	$	651,844	$	3,537	$	2,489

(a) Primarily represents floating rate interest rate swaps that pay based on differentials between specified interest rate indexes.

The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax):

	Three Months Ended June 30										Six Months Ended June 30
	Gains (Losses) Recognized in Other Comprehensive Income (Loss)					Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings					Gains (Losses) Recognized in Other Comprehensive Income (Loss)					Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
(Dollars in Millions)	2022		2021			2022			2021		2022		2021			2022			2021
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts	$	73	$	11		$	(8	)	$	6	$	73	$	85		$	(16	)	$	3
Net investment hedges
Foreign exchange forward contracts		27		(8	)		—			—		26		(1	)		—			—
Non-derivative debt instruments		63		(14	)		—			—		83		34			—			—

Note: The Company does not exclude components from effectiveness testing for cash flow and net investment hedges.

The table below shows the effect of fair value and cash flow hedge accounting on the Consolidated Statement of Income:

	Three Months Ended June 30												Six Months Ended June 30
	Interest Income						Interest Expense						Interest Income						Interest Expense
(Dollars in Millions)	2022			2021			2022			2021			2022			2021			2022			2021
Total amount of income and expense line items presented in the Consolidated Statement of Income in which the effects of fair value or cash flow hedges are recorded	$	3,825		$	3,382		$	390		$	245		$	7,243		$	6,723		$	635		$	523
Asset and Liability Management Positions
Fair value hedges
Interest rate contract derivatives		(186	)		(30	)		(38	)		18			331			(31	)		34			73
Hedged items		187			29			36			(17	)		(331	)		30			(35	)		(72	)
Cash flow hedges
Interest rate contract derivatives		—			—			10			(8	)		—			—			21			(4	)

Note: The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company reclassified losses of $10 million and $21 million into earnings during the three and six months ended June 30, 2022, respectively, as a result of realized cash flows on discontinued cash flow hedges, compared with $12 million and $27 million during the three and six months ended June 30, 2021, respectively. No amounts were reclassified into earnings on discontinued cash flow hedges because it is probable the original hedged forecasted cash flows will not occur.

The table below shows cumulative hedging adjustments and the carrying amount of assets and liabilities designated in fair value hedges:

	Carrying Amount of the Hedged Assets and Liabilities				Cumulative Hedging Adjustment (a)
At December 31 (Dollars in Millions)	June 30, 2022		December 31, 2021		June 30, 2022			December 31, 2021
Line Item in the Consolidated Balance Sheet
Available-for-sale investment securities	$	3,124	$	16,445	$	(716	)	$	(26	)
Long-term debt		17,724		12,278		378			585

(a) The cumulative hedging adjustment related to discontinued hedging relationships on available-for-sale investment securities and long-term debt was $(365) million and $468 million, respectively, at June 30, 2022, compared with $(6) million and $640 million at December 31, 2021, respectively.

The table below shows the gains (losses) recognized in earnings for other economic hedges and the customer-related positions:

	Location of Gains (Losses) Recognized in Earnings		Three Months Ended June 30						Six Months Ended June 30
(Dollars in Millions)			2022			2021			2022			2021
Asset and Liability Management Positions
Other economic hedges
Interest rate contracts
Futures and forwards		Mortgage banking revenue	$	74		$	(99	)	$	297		$	331
Purchased and written options		Mortgage banking revenue		6			253			(41	)		265
Swaps		Mortgage banking revenue		(247	)		193			(451	)		(197	)
Foreign exchange forward contracts		Other noninterest income		4			(7	)		1			(10	)
Equity contracts		Compensation expense		(1	)		1			(3	)		5
Other		Other noninterest income		1			1			—			1
Customer-Related Positions
Interest rate contracts
Swaps		Commercial products revenue		30			25			47			52
Purchased and written options		Commercial products revenue		—			4			4			(3	)
Futures		Commercial products revenue		8			—			24			—
Foreign exchange rate contracts
Forwards, spots and swaps		Commercial products revenue		20			27			35			46
Purchased and written options		Commercial products revenue		1			—			1			—
Credit contracts		Commercial products revenue		17			(4	)		22			(2	)

Derivatives are subject to credit risk associated with counterparties to the derivative contracts. The Company measures that credit risk using a credit valuation adjustment and includes it within the fair value of the derivative. The Company manages counterparty credit risk through diversification of its derivative positions among various counterparties, by entering into derivative positions that are centrally cleared through clearinghouses, by entering into master netting arrangements and, where possible, by requiring collateral arrangements. A master netting arrangement allows two counterparties, who have multiple derivative contracts with each other, the ability to net settle amounts under all contracts, including any related collateral, through a single payment and in a single currency. Collateral arrangements generally require the counterparty to deliver collateral (typically cash or U.S. Treasury and agency securities) equal to the Company’s net derivative receivable, subject to minimum transfer and credit rating requirements.

The Company’s collateral arrangements are predominately bilateral and, therefore, contain provisions that require collateralization of the Company’s net liability derivative positions. Required collateral coverage is based on net liability thresholds and may be contingent upon the Company’s credit rating from two of the nationally recognized statistical rating organizations. If the Company’s credit rating were to fall below credit ratings thresholds established in the collateral arrangements, the counterparties to the derivatives could request immediate additional collateral coverage up to and including full collateral coverage for derivatives in a net liability position. The aggregate fair value of all derivatives under collateral arrangements that were in a net liability position at June 30, 2022, was $1.5 billion. At June 30, 2022, the Company had $1.2 billion of cash posted as collateral against this net liability position.

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Netting Arrangements for Certain Financial Instruments and Securities Financing Activities

6 Months Ended

Jun. 30, 2022

Text Block [Abstract]

Netting Arrangements for Certain Financial Instruments and Securities Financing Activities

 Note 14 Netting Arrangements for Certain Financial Instruments and Securities Financing Activities

The Company’s derivative portfolio consists of bilateral over-the-counter trades, certain interest rate derivatives and credit contracts required to be centrally cleared through clearinghouses per current regulations, and exchange-traded positions which may include U.S. Treasury and Eurodollar futures or options on U.S. Treasury futures. Of the Company’s $800.6 billion total notional amount of derivative positions at June 30, 2022, $409.7 billion related to

bilateral over-the-counter trades, $383.9 billion related to those centrally cleared through clearinghouses and $7.0 billion related to those that were exchange-traded. The Company’s derivative contracts typically include offsetting rights (referred to as netting arrangements), and depending on expected volume, credit risk, and counterparty preference, collateral maintenance may be required. For all derivatives under collateral support arrangements, fair value is determined daily and, depending on the collateral maintenance requirements, the Company and a counterparty may receive or deliver collateral, based upon the net fair value of all derivative positions between the Company and the counterparty. Collateral is typically cash, but securities may be allowed under collateral arrangements with certain counterparties. Receivables and payables related to cash collateral are included in other assets and other liabilities on the Consolidated Balance Sheet, along with the related derivative asset and liability fair values. Any securities pledged to counterparties as collateral remain on the Consolidated Balance Sheet. Securities received from counterparties as collateral are not recognized on the Consolidated Balance Sheet, unless the counterparty defaults. In general, securities used as collateral can be sold, repledged or otherwise used by the party in possession. No restrictions exist on the use of cash collateral by either party. Refer to Note 13 for further discussion of the Company’s derivatives, including collateral arrangements.

As part of the Company’s treasury and broker-dealer operations, the Company executes transactions that are treated as securities sold under agreements to repurchase or securities purchased under agreements to resell, both of which are accounted for as collateralized financings. Securities sold under agreements to repurchase include repurchase agreements and securities loaned transactions. Securities purchased under agreements to resell include reverse repurchase agreements and securities borrowed transactions. For securities sold under agreements to repurchase, the Company records a liability for the cash received, which is included in short-term borrowings on the Consolidated Balance Sheet. For securities purchased under agreements to resell, the Company records a receivable for the cash paid, which is included in other assets on the Consolidated Balance Sheet.

Securities transferred to counterparties under repurchase agreements and securities loaned transactions continue to be recognized on the Consolidated Balance Sheet, are measured at fair value, and are included in investment securities or other assets. Securities received from counterparties under reverse repurchase agreements and securities borrowed transactions are not recognized on the Consolidated Balance Sheet unless the counterparty defaults. The securities transferred under repurchase and reverse repurchase transactions typically are U.S. Treasury and agency securities, residential agency mortgage-backed securities or corporate debt securities. The securities loaned or borrowed typically are corporate debt securities traded by the Company’s broker-dealer subsidiary. In general, the securities transferred can be sold, repledged or otherwise used by the party in possession. No restrictions exist on the use of cash collateral by either party. Repurchase/reverse repurchase and securities loaned/borrowed transactions expose the Company to counterparty risk. The Company manages this risk by performing assessments, independent of business line managers, and establishing concentration limits on each counterparty. Additionally, these transactions include collateral arrangements that require the fair values of the underlying securities to be determined daily, resulting in cash being obtained or refunded to counterparties to maintain specified collateral levels.

The following table summarizes the maturities by category of collateral pledged for repurchase agreements and securities loaned transactions:

(Dollars in Millions)	Overnight and Continuous		Less Than 30 Days		30-89 Days		Greater Than 90 Days		Total
June 30, 2022
Repurchase agreements
U.S. Treasury and agencies	$	429	$	–	$	–	$	–	$	429
Residential agency mortgage-backed securities		969		–		–		–		969
Corporate debt securities		597		–		–		–		597
Total repurchase agreements		1,995		–		–		–		1,995
Securities loaned
Corporate debt securities		225		–		–		–		225
Total securities loaned		225		–		–		–		225
Gross amount of recognized liabilities	$	2,220	$	–	$	–	$	–	$	2,220
December 31, 2021
Repurchase agreements
U.S. Treasury and agencies	$	378	$	–	$	–	$	–	$	378
Residential agency mortgage-backed securities		551		–		–		–		551
Corporate debt securities		646		–		–		–		646
Total repurchase agreements		1,575		–		–		–		1,575
Securities loaned
Corporate debt securities		169		–		–		–		169
Total securities loaned		169		–		–		–		169
Gross amount of recognized liabilities	$	1,744	$	–	$	–	$	–	$	1,744

The Company executes its derivative, repurchase/reverse repurchase and securities loaned/borrowed transactions under the respective industry standard agreements. These agreements include master netting arrangements that allow for multiple contracts executed with the same counterparty to be viewed as a single arrangement. This allows for net settlement of a single amount on a daily basis. In the event of default, the master netting arrangement provides for close-out netting, which allows all of these positions with the defaulting counterparty to be terminated and net settled with a single payment amount.

The Company has elected to offset the assets and liabilities under netting arrangements for the balance sheet presentation of the majority of its derivative counterparties. The netting occurs at the counterparty level, and includes all assets and liabilities related to the derivative contracts, including those associated with cash collateral received or delivered. The Company has not elected to offset the assets and liabilities under netting arrangements for the balance sheet presentation of repurchase/reverse repurchase and securities loaned/borrowed transactions.

The following tables provide information on the Company’s netting adjustments, and items not offset on the Consolidated Balance Sheet but available for offset in the event of default:

(Dollars in Millions)	Gross Recognized Assets		Gross Amounts Offset on the Consolidated Balance Sheet (a)			Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet						Net Amount
								Financial Instruments (b)			Collateral Received (c)
June 30, 2022
Derivative assets (d)	$	5,359	$	(3,503	)	$	1,856	$	(175	)	$	(66	)	$	1,615
Reverse repurchase agreements		513		–			513		(386	)		(127	)		–
Securities borrowed		1,657		–			1,657		–			(1,609	)		48
Total	$	7,529	$	(3,503	)	$	4,026	$	(561	)	$	(1,802	)	$	1,663
December 31, 2021
Derivative assets (d)	$	3,830	$	(1,609	)	$	2,221	$	(142	)	$	(106	)	$	1,973
Reverse repurchase agreements		359		–			359		(249	)		(110	)		–
Securities borrowed		1,868		–			1,868		–			(1,818	)		50
Total	$	6,057	$	(1,609	)	$	4,448	$	(391	)	$	(2,034	)	$	2,023

(a) Includes $2.0 billion and $528 million of cash collateral related payables that were netted against derivative assets at June 30, 2022 and December 31, 2021, respectively.

(b) For derivative assets this includes any derivative liability fair values that could be offset in the event of counterparty default; for reverse repurchase agreements this includes any repurchase agreement payables that could be offset in the event of counterparty default; for securities borrowed this includes any securities loaned payables that could be offset in the event of counterparty default.

(c) Includes the fair value of securities received by the Company from the counterparty. These securities are not included on the Consolidated Balance Sheet unless the counterparty defaults.

(d) Excludes $30 million and $57 million at June 30, 2022 and December 31, 2021, respectively, of derivative assets not subject to netting arrangements.

(Dollars in Millions)	Gross Recognized Liabilities		Gross Amounts Offset on the Consolidated Balance Sheet (a)			Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet
								Financial Instruments (b)			Collateral Pledged (c)			Net Amount
June 30, 2022
Derivative liabilities (d)	$	6,771	$	(2,639	)	$	4,132	$	(175	)	$	–		$	3,957
Repurchase agreements		1,995		–			1,995		(386	)		(1,609	)		–
Securities loaned		225		–			225		–			(223	)		2
Total	$	8,991	$	(2,639	)	$	6,352	$	(561	)	$	(1,832	)	$	3,959
December 31, 2021
Derivative liabilities (d)	$	2,761	$	(1,589	)	$	1,172	$	(142	)	$	–		$	1,030
Repurchase agreements		1,575		–			1,575		(249	)		(1,326	)		–
Securities loaned		169		–			169		–			(167	)		2
Total	$	4,505	$	(1,589	)	$	2,916	$	(391	)	$	(1,493	)	$	1,032

(a) Includes $1.2 billion and $508 million of cash collateral related receivables that were netted against derivative liabilities at June 30, 2022 and December 31, 2021, respectively.

(b) For derivative liabilities this includes any derivative asset fair values that could be offset in the event of counterparty default; for repurchase agreements this includes any reverse repurchase agreement receivables that could be offset in the event of counterparty default; for securities loaned this includes any securities borrowed receivables that could be offset in the event of counterparty default.

(c) Includes the fair value of securities pledged by the Company to the counterparty. These securities are included on the Consolidated Balance Sheet unless the Company defaults.    

(d) Excludes $110 million and $137 million at June 30, 2022 and December 31, 2021, respectively, of derivative liabilities not subject to netting arrangements.

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Fair Values of Assets and Liabilities

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Values of Assets and Liabilities

 Note 15    Fair Values of Assets and Liabilities

The Company uses fair value measurements for the initial recording of certain assets and liabilities, periodic remeasurement of certain assets and liabilities, and disclosures. Derivatives, trading and available-for-sale investment securities, MSRs and substantially all MLHFS are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as loans held for sale, loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-fair value accounting or impairment write-downs of individual assets.

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value measurement reflects all of the assumptions that market participants would use in pricing the asset or liability, including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset and the risk of nonperformance.

The Company groups its assets and liabilities measured at fair value into a three-level hierarchy for valuation techniques used to measure financial assets and financial liabilities at fair value. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are:

• Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 1 includes U.S. Treasury securities, as well as exchange-traded instruments.

• Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 includes debt securities that are traded less frequently than exchange-traded instruments and which are typically valued using third party pricing services; derivative contracts and other assets and liabilities, including securities, whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data; and MLHFS whose values are determined using quoted prices for similar assets or pricing models with inputs that are observable in the market or can be corroborated by observable market data.

• Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category includes MSRs and certain derivative contracts.

Valuation Methodologies

The valuation methodologies used by the Company to measure financial assets and liabilities at fair value are described below. In addition, the following section includes an indication of the level of the fair value hierarchy in which the assets or liabilities are classified. Where appropriate, the descriptions include information about the valuation models and key inputs to those models. During the six months ended June 30, 2022 and 2021, there were no significant changes to the valuation techniques used by the Company to measure fair value.

Available-For-Sale Investment Securities When quoted market prices for identical securities are available in an active market, these prices are used to determine fair value and these securities are classified within Level 1 of the fair value hierarchy. Level 1 investment securities include U.S. Treasury and exchange-traded securities.

For other securities, quoted market prices may not be readily available for the specific securities. When possible, the Company determines fair value based on market observable information, including quoted market prices for similar securities, inactive transaction prices, and broker quotes. These securities are classified within Level 2 of the fair value hierarchy. Level 2 valuations are generally provided by a third-party pricing service. Level 2 investment securities are predominantly agency mortgage-backed securities, certain other asset-backed securities, obligations of state and political subdivisions and agency debt securities.

Mortgage Loans Held For Sale MLHFS measured at fair value, for which an active secondary market and readily available market prices exist, are initially valued at the transaction price and are subsequently valued by comparison to instruments with similar collateral and risk profiles. MLHFS are classified within Level 2. Included in mortgage banking revenue was a net loss of $64 million and a net gain of $98 million for the three months ended June 30, 2022 and 2021, respectively, and net losses of $298 million and $117 million for the six months ended June 30, 2022 and 2021, respectively, from the changes to fair value of these MLHFS under fair value option accounting guidance. Changes in fair value due to instrument specific credit risk were immaterial. Interest income for MLHFS is measured based on contractual interest rates and reported as interest income on the Consolidated Statement of Income. Electing to measure MLHFS at fair value reduces certain timing differences and better matches changes in fair value of these assets with changes in the value of the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting.

Mortgage Servicing Rights MSRs are valued using a discounted cash flow methodology, and are classified within Level 3. The Company determines fair value of the MSRs by projecting future cash flows for different interest rate scenarios using prepayment rates and other assumptions, and discounts these cash flows using a risk adjusted rate based on option adjusted spread levels. There is minimal observable market activity for MSRs on comparable portfolios and, therefore, the determination of fair value requires significant management judgment. Refer to Note 7 for further information on MSR valuation assumptions.

Derivatives The majority of derivatives held by the Company are executed over-the-counter or centrally cleared through clearinghouses and are valued using market standard cash flow valuation techniques. The models incorporate inputs, depending on the type of derivative, including interest rate curves, foreign exchange rates and volatility. All derivative values incorporate an assessment of the risk of counterparty nonperformance, measured based on the Company’s evaluation of credit risk including external assessments of credit risk. The Company monitors and manages its nonperformance risk by considering its ability to net derivative positions under master netting arrangements, as well as collateral received or provided under collateral arrangements. Accordingly, the Company has elected to measure the fair value of derivatives, at a counterparty level, on a net basis. The majority of the derivatives are classified within Level 2 of the fair value hierarchy, as the significant inputs to the models, including nonperformance risk, are observable. However, certain derivative transactions are with counterparties where risk of nonperformance cannot be observed in the market and, therefore, the credit valuation adjustments result in these derivatives being classified within Level 3 of the fair value hierarchy.

The Company also has other derivative contracts that are created through its operations, including commitments to purchase and originate mortgage loans and swap agreements executed in conjunction with the sale of a portion of its Class B common and preferred shares of Visa Inc. (the “Visa swaps”). The mortgage loan commitments are valued by pricing models that include market observable and unobservable inputs, which result in the commitments being classified within Level 3 of the fair value hierarchy. The unobservable inputs include assumptions about the percentage of commitments that actually become a closed loan and the MSR value that is inherent in the underlying loan value.

The Visa swaps require payments by either the Company or the purchaser of the Visa Inc. Class B common and preferred shares when there are changes in the conversion rate of the Visa Inc. Class B common and preferred shares to Visa Inc. Class A common and preferred shares, respectively, as well as quarterly payments to the purchaser based on specified terms of the agreements. Management reviews and updates the Visa swaps fair value in conjunction with its review of Visa Inc. related litigation contingencies, and the associated escrow funding. The expected litigation resolution impacts the Visa Inc. Class B common share to Visa Inc. Class A common share conversion rate, as well as the ultimate termination date for the Visa swaps. Accordingly, the Visa swaps are classified within Level 3. Refer to Note 16 for further information on the Visa Inc. restructuring and related card association litigation.

Significant Unobservable Inputs of Level 3 Assets and Liabilities

The following section provides information to facilitate an understanding of the uncertainty in the fair value measurements for the Company’s Level 3 assets and liabilities recorded at fair value on the Consolidated Balance Sheet. This section includes a description of the significant inputs used by the Company and a description of any interrelationships between these inputs. The discussion below excludes nonrecurring fair value measurements of collateral value used for impairment measures for loans and OREO. These valuations utilize third party appraisal or broker price opinions, and are classified as Level 3 due to the significant judgment involved.

Mortgage Servicing Rights The significant unobservable inputs used in the fair value measurement of the Company’s MSRs are expected prepayments and the option adjusted spread that is added to the risk-free rate to discount projected cash flows. Significant increases in either of these inputs in isolation would have resulted in a significantly lower fair value measurement. Significant decreases in either of these inputs in isolation would have resulted in a significantly higher fair value measurement. There is no direct interrelationship between prepayments and option adjusted spread. Prepayment rates generally move in the opposite direction of market interest rates. Option adjusted spread is generally impacted by changes in market return requirements.

The following table shows the significant valuation assumption ranges for MSRs at June 30, 2022:

	Minimum			Maximum			Weighted- Average (a)
Expected prepayment		5	%		10	%		7	%
Option adjusted spread		5			11			6

(a) Determined based on the relative fair value of the related mortgage loans serviced.

Derivatives The Company has two distinct Level 3 derivative portfolios: (i) the Company’s commitments to purchase and originate mortgage loans that meet the requirements of a derivative and (ii) the Company’s asset/liability and customer-related derivatives that are Level 3 due to unobservable inputs related to measurement of risk of nonperformance by the counterparty. In addition, the Company’s Visa swaps are classified within Level 3.

The significant unobservable inputs used in the fair value measurement of the Company’s derivative commitments to purchase and originate mortgage loans are the percentage of commitments that actually become a closed loan and the MSR value that is inherent in the underlying loan value. A significant increase in the rate of loans that close would have resulted in a larger derivative asset or liability. A significant increase in the inherent MSR value would have resulted in an increase in the derivative asset or a reduction in the derivative liability. Expected loan close rates and the inherent MSR values are directly impacted by changes in market rates and will generally move in the same direction as interest rates.

The following table shows the significant valuation assumption ranges for the Company’s derivative commitments to purchase and originate mortgage loans at June 30, 2022:

	Minimum			Maximum			Weighted- Average (a)
Expected loan close rate		29	%		100	%		80	%
Inherent MSR value (basis points per loan)		37			219			108

(a) Determined based on the relative fair value of the related mortgage loans.

The significant unobservable input used in the fair value measurement of certain of the Company’s asset/liability and customer-related derivatives is the credit valuation adjustment related to the risk of counterparty nonperformance.

A significant increase in the credit valuation adjustment would have resulted in a lower fair value measurement. A significant decrease in the credit valuation adjustment would have resulted in a higher fair value measurement. The credit valuation adjustment is impacted by changes in market rates, volatility, market implied credit spreads, and loss recovery rates, as well as the Company’s assessment of the counterparty’s credit position. At June 30, 2022, the minimum, maximum and weighted-average credit valuation adjustment as a percentage of the net fair value of the counterparty’s derivative contracts prior to adjustment was 0 percent, 158 percent and 2 percent, respectively.

The significant unobservable inputs used in the fair value measurement of the Visa swaps are management’s estimate of the probability of certain litigation scenarios occurring, and the timing of the resolution of the related litigation loss estimates in excess, or shortfall, of the Company’s proportional share of escrow funds. An increase in the loss estimate or a delay in the resolution of the related litigation would have resulted in an increase in the derivative liability. A decrease in the loss estimate or an acceleration of the resolution of the related litigation would have resulted in a decrease in the derivative liability.

The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis:

(Dollars in Millions)	Level 1		Level 2		Level 3		Netting			Total
June 30, 2022
Available-for-sale securities
U.S. Treasury and agencies	$	18,539	$	5,228	$	–	$	–		$	23,767
Mortgage-backed securities
Residential agency		–		57,752		–		–			57,752
Commercial agency		–		7,564		–		–			7,564
Obligations of state and political subdivisions		–		9,715		1		–			9,716
Other		–		7		–		–			7
Total available-for-sale		18,539		80,266		1		–			98,806
Mortgage loans held for sale		–		2,773		–		–			2,773
Mortgage servicing rights		–		–		3,707		–			3,707
Derivative assets		–		4,555		834		(3,503	)		1,886
Other assets		187		1,830		–		–			2,017
Total	$	18,726	$	89,424	$	4,542	$	(3,503	)	$	109,189
Derivative liabilities	$	–	$	3,872	$	3,009	$	(2,639	)	$	4,242
Short-term borrowings and other liabilities (a)		190		1,645		–		–			1,835
Total	$	190	$	5,517	$	3,009	$	(2,639	)	$	6,077
December 31, 2021
Available-for-sale securities
U.S. Treasury and agencies	$	30,917	$	5,692	$	–	$	–		$	36,609
Mortgage-backed securities
Residential agency		–		77,079		–		–			77,079
Commercial agency		–		8,485		–		–			8,485
Asset-backed securities		–		59		7		–			66
Obligations of state and political subdivisions		–		10,716		1		–			10,717
Other		–		7		–		–			7
Total available-for-sale		30,917		102,038		8		–			132,963
Mortgage loans held for sale		–		6,623		–		–			6,623
Mortgage servicing rights		–		–		2,953		–			2,953
Derivative assets		8		2,490		1,389		(1,609	)		2,278
Other assets		278		1,921		—		—			2,199
Total	$	31,203	$	113,072	$	4,350	$	(1,609	)	$	147,016
Derivative liabilities	$	—	$	2,308	$	590	$	(1,589	)	$	1,309
Short-term borrowings and other liabilities (a)		209		1,837		—		—			2,046
Total	$	209	$	4,145	$	590	$	(1,589	)	$	3,355

Note: Excluded from the table above are equity investments without readily determinable fair values. The Company has elected to carry these investments at historical cost, adjusted for impairment and any changes resulting from observable price changes for identical or similar investments of the issuer. The aggregate carrying amount of these equity investments was $80 million and $79 million at June 30, 2022 and December 31, 2021, respectively. The Company has not recorded impairments or adjustments for observable price changes on these equity investments during the first six months of 2022 and 2021, or on a cumulative basis.

(a) Primarily represents the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.

The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended June 30:

(Dollars in Millions)	Beginning of Period Balance			Net Gains (Losses) Included in Net Income			Net Gains (Losses) Included in Other Comprehensive Income (Loss)		Purchases		Sales			Issuances			Settlements			End of Period Balance			Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period
2022
Available-for-sale securities
Asset-backed securities	$	7		$	(3	)	$	–	$	–	$	(4	)	$	–		$	–		$	–		$	–
Obligations of state and political subdivisions		1			–			–		–		–			–			–			1			–
Total available-for-sale		8			(3	)		–		–		(4	)		–			–			1			–
Mortgage servicing rights		3,432			170	(a)		–		3		–			102	(c)		–			3,707			170	(a)
Net derivative assets and liabilities		(1,011	)		(1,494	) (b)		–		81		–			–			249			(2,175	)		(1,259	) (d)
2021
Available-for-sale securities
Asset-backed securities	$	7		$	–		$	1	$	–	$	–		$	–		$	–		$	8		$	1
Obligations of state and political subdivisions		1			–			–		–		–			–			–			1			–
Total available-for-sale		8			–			1		–		–			–			–			9			1
Mortgage servicing rights		2,787			(379	) (a)		–		11		1			293	(c)		–			2,713			(379	) (a)
Net derivative assets and liabilities		1,156			556	(e)		–		58		(1	)		–			(269	)		1,500			412	(f)

(a) Included in mortgage banking revenue.     

(b) Approximately $(20) million, $(1.5) billion and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.

(c) Represents MSRs capitalized during the period.     

(d) Approximately $(3) million, $(1.3) billion and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.

(e) Approximately $276 million, $279 million and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.

(f) Approximately $100 million, $311 million and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.

The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30:

(Dollars in Millions)	Beginning of Period Balance		Net Gains (Losses) Included in Net Income			Net Gains (Losses) Included in Other Comprehensive Income (Loss)		Purchases		Sales			Issuances			Settlements			End of Period Balance			Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period
2022
Available-for-sale securities
Asset-backed securities	$	7	$	(3	)	$	–	$	–	$	(4	)	$	–		$	–		$	–		$	–
Obligations of state and political subdivisions		1		–			–		–		–			–			–			1			–
Total available-for-sale		8		(3	)		–		–		(4	)		–			–			1			–
Mortgage servicing rights		2,953		408	(a)		–		6		1			339	(c)		–			3,707			408	(a)
Net derivative assets and liabilities		799		(3,361	) (b)		–		92		(1	)		–			296			(2,175	)		(2,739	) (d)
2021
Available-for-sale securities
Asset-backed securities	$	7	$	–		$	1	$	–	$	–		$	–		$	–		$	8		$	1
Obligations of state and political subdivisions		1		–			–		–		–			–			–			1			–
Total available-for-sale		8		–			1		–		–			–			–			9			1
Mortgage servicing rights		2,210		(137	) (a)		–		27		1			612	(c)		–			2,713			(137	) (a)
Net derivative assets and liabilities		2,326		(379	) (e)		–		60		(1	)		–			(506	)		1,500			(496	) (f)

(a) Included in mortgage banking revenue.     

(b) Approximately $(103) million and $(3.3) billion included in mortgage banking revenue and commercial products revenue, respectively.

(c) Represents MSRs capitalized during the period.     

(d) Approximately $(3) million and $(2.7) billion included in mortgage banking revenue and commercial products revenue, respectively.

(e) Approximately $336 million, $(716) million and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.

(f) Approximately $100 million, $(597) million and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.

The Company is also required periodically to measure certain other financial assets at fair value on a nonrecurring basis. These measurements of fair value usually result from the application of lower-of-cost-or-fair value accounting or write-downs of individual assets.

The following table summarizes the balances as of the measurement date of assets measured at fair value on a nonrecurring basis, and still held as of the reporting date:

	June 30, 2022								December 31, 2021
(Dollars in Millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Loans (a)	$	–	$	–	$	69	$	69	$	–	$	–	$	59	$	59
Other assets (b)		–		–		28		28		–		–		77		77

(a) Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off.

(b) Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition.

The following table summarizes losses recognized related to nonrecurring fair value measurements of individual assets or portfolios:

	Three Months Ended June 30				Six Months Ended June 30
(Dollars in Millions)	2022		2021		2022		2021
Loans (a)	$	22	$	12	$	33	$	43
Other assets (b)		10		5		11		6

(a) Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off.     

(b) Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition.

Fair Value Option

The following table summarizes the differences between the aggregate fair value carrying amount of MLHFS for which the fair value option has been elected and the aggregate unpaid principal amount that the Company is contractually obligated to receive at maturity:    

	June 30, 2022						December 31, 2021
(Dollars in Millions)	Fair Value Carrying Amount		Aggregate Unpaid Principal		Carrying Amount Over (Under) Unpaid Principal		Fair Value Carrying Amount		Aggregate Unpaid Principal		Carrying Amount Over (Under) Unpaid Principal
Total loans	$	2,773	$	2,753	$	20	$	6,623	$	6,453	$	170
Nonaccrual loans		1		1		–		1		1		–
Loans 90 days or more past due		1		1		–		2		2		–

Fair Value of Financial Instruments

The following section summarizes the estimated fair value for financial instruments accounted for at amortized cost as of June 30, 2022 and December 31, 2021. In accordance with disclosure guidance related to fair values of financial instruments, the Company did not include assets and liabilities that are not financial instruments, such as the value of goodwill, long-term relationships with deposit, credit card, merchant processing and trust customers, other purchased intangibles, premises and equipment, deferred taxes and other liabilities. Additionally, in accordance with the disclosure guidance, receivables and payables due in one year or less, insurance contracts, equity investments not accounted for at fair value, and deposits with no defined or contractual maturities are excluded.

The estimated fair values of the Company’s financial instruments are shown in the table below:

	June 30, 2022										December 31, 2021
	Carrying Amount		Fair Value								Carrying Amount		Fair Value
(Dollars in Millions)			Level 1		Level 2		Level 3		Total				Level 1		Level 2		Level 3		Total
Financial Assets
Cash and due from banks	$	39,124	$	39,124	$	–	$	–	$	39,124	$	28,905	$	28,905	$	–	$	–	$	28,905
Federal funds sold and securities purchased under resale agreements		520		–		520		–		520		359		–		359		–		359
Investment securities held-to-maturity		61,503		1,337		54,320		–		55,657		41,858		–		41,812		–		41,812
Loans held for sale (a)		1,170		–		–		1,170		1,170		1,152		–		–		1,152		1,152
Loans		326,537		–		–		321,095		321,095		306,304		–		–		312,724		312,724
Other (b)		2,391		–		1,679		712		2,391		1,521		–		630		891		1,521
Financial Liabilities
Time deposits		30,622		–		30,039		–		30,039		22,665		–		22,644		–		22,644
Short-term borrowings (c)		23,128		–		22,789		–		22,789		9,750		–		9,646		–		9,646
Long-term debt		29,408		–		27,901		–		27,901		32,125		–		32,547		–		32,547
Other (d)		3,896		–		1,135		2,761		3,896		3,862		–		1,170		2,692		3,862

(a) Excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected.     

(b) Includes investments in Federal Reserve Bank and Federal Home Loan Bank stock and tax-advantaged investments.    

(c) Excludes the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.

(d) Includes operating lease liabilities and liabilities related to tax-advantaged investments.    

The fair value of unfunded commitments, deferred non-yield related loan fees, standby letters of credit and other guarantees is approximately equal to their carrying value. The carrying value of unfunded commitments, deferred non-yield related loan fees and standby letters of credit was $486 million and $495 million at June 30, 2022 and December 31, 2021, respectively. The carrying value of other guarantees was $224 million and $245 million at June 30, 2022 and December 31, 2021, respectively.

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Guarantees and Contingent Liabilities

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Guarantees and Contingent Liabilities

 Note  16    Guarantees and Contingent Liabilities

Visa Restructuring and Card Association Litigation The Company’s payment services business issues credit and debit cards and acquires credit and debit card transactions through the Visa U.S.A. Inc. card association or its affiliates (collectively “Visa”). In 2007, Visa completed a restructuring and issued shares of Visa Inc. common stock to its financial institution members in contemplation of its initial public offering (“IPO”) completed in the first quarter of 2008 (the “Visa Reorganization”). As a part of the Visa Reorganization, the Company received its proportionate number of shares of Visa Inc. common stock, which were subsequently converted to Class B shares of Visa Inc. (“Class B shares”).

Visa U.S.A. Inc. (“Visa U.S.A.”) and MasterCard International (collectively, the “Card Brands”) are defendants in antitrust lawsuits challenging the practices of the Card Brands (the “Visa Litigation”). Visa U.S.A. member banks have a contingent obligation to indemnify Visa Inc. under the Visa U.S.A. bylaws (which were modified at the time of the restructuring in October 2007) for potential losses arising from the Visa Litigation. The indemnification by the Visa U.S.A. member banks has no specific maximum amount. Using proceeds from its IPO and through reductions to the conversion ratio applicable to the Class B shares held by Visa U.S.A. member banks, Visa Inc. has funded an escrow account for the benefit of member financial institutions to fund their indemnification obligations associated with the Visa Litigation. The receivable related to the escrow account is classified in other liabilities as a direct offset to the related Visa Litigation contingent liability.

In October 2012, Visa signed a settlement agreement to resolve class action claims associated with the multidistrict interchange litigation pending in the United States District Court for the Eastern District of New York (the “Multi-District Litigation”). The U.S. Court of Appeals for the Second Circuit reversed the approval of that settlement and remanded the matter to the district court. Thereafter, the case was split into two putative class actions, one seeking damages (the “Damages Action”) and a separate class action seeking injunctive relief only (the “Injunctive Action”). In September 2018, Visa signed a new settlement agreement, superseding the original settlement agreement, to resolve the Damages Action. The Damages Action settlement was approved by the United States District Court for the Eastern District of New York, but is now on appeal. The Injunctive Action, which generally seeks changes to Visa rules, is still pending.

Other Guarantees and Contingent Liabilities

The following table is a summary of other guarantees and contingent liabilities of the Company at June 30, 2022:

(Dollars in Millions)	Collateral Held		Carrying Amount		Maximum Potential Future Payments
Standby letters of credit	$	—	$	55	$	9,844
Third party borrowing arrangements		—		—		7
Securities lending indemnifications		7,822		—		7,461
Asset sales		—		85		7,629	(a)
Merchant processing		1,415		118		141,453
Tender option bond program guarantee		1,521		—		1,489
Other		—		21		1,343

(a) The maximum potential future payments do not include loan sales where the Company provides standard representation and warranties to the buyer against losses related to loan underwriting documentation defects that may have existed at the time of sale that generally are identified after the occurrence of a triggering event such as delinquency. For these types of loan sales, the maximum potential future payments is generally the unpaid principal balance of loans sold measured at the end of the current reporting period. Actual losses will be significantly less than the maximum exposure, as only a fraction of loans sold will have a representation and warranty breach, and any losses on repurchase would generally be mitigated by any collateral held against the loans.

Merchant Processing The Company, through its subsidiaries, provides merchant processing services. Under the rules of credit card associations, a merchant processor retains a contingent liability for credit card transactions processed. This contingent liability arises in the event of a billing dispute between the merchant and a cardholder that is ultimately resolved in the cardholder’s favor. In this situation, the transaction is “charged-back” to the merchant and the disputed amount is credited or otherwise refunded to the cardholder. If the Company is unable to collect this amount from the merchant, it bears the loss for the amount of the refund paid to the cardholder.

The Company currently processes card transactions in the United States, Canada and Europe through wholly-owned subsidiaries. In the event a merchant was unable to fulfill product or services subject to future delivery, such as airline tickets, the Company could become financially liable for refunding the purchase price of such products or services purchased through the credit card associations under the charge-back provisions. Charge-back risk related to these merchants is evaluated in a manner similar to credit risk assessments and, as such, merchant processing contracts contain various provisions to protect the Company in the event of default. At June 30, 2022, the value of airline tickets purchased to be delivered at a future date through card transactions processed by the Company was $9.1 billion. The Company held collateral of $1.2 billion in escrow deposits, letters of credit and indemnities from financial institutions, and liens on various assets. In addition to specific collateral or other credit enhancements, the Company maintains a liability for its implied guarantees associated with future delivery. At June 30, 2022, the liability was $100 million primarily related to these airline processing arrangements.

Asset Sales The Company regularly sells loans to GSEs as part of its mortgage banking activities. The Company provides customary representations and warranties to GSEs in conjunction with these sales. These representations and warranties generally require the Company to repurchase assets if it is subsequently determined that a loan did not meet specified criteria, such as a documentation deficiency or rescission of mortgage insurance. If the Company is unable to cure or refute a repurchase request, the Company is generally obligated to repurchase the loan or otherwise reimburse the GSE for losses. At June 30, 2022, the Company had reserved $13 million for potential losses from representation and warranty obligations, compared with $18 million at December 31, 2021. The Company’s reserve reflects management’s best estimate of losses for representation and warranty obligations. The Company’s repurchase reserve is modeled at the loan level, taking into consideration the individual credit quality and borrower activity that has transpired since origination. The model applies credit quality and economic risk factors to derive a probability of default and potential repurchase that are based on the Company’s historical loss experience, and estimates loss severity based on expected collateral value. The Company also considers qualitative factors that may result in anticipated losses differing from historical loss trends.

As of June 30, 2022 and December 31, 2021, the Company had $35 million and $19 million, respectively, of unresolved representation and warranty claims from GSEs. The Company does not have a significant amount of unresolved claims from investors other than GSEs.

Litigation and Regulatory Matters

The Company is subject to various litigation and regulatory matters that arise in the ordinary course of its business. The Company establishes reserves for such matters when potential losses become probable and can be reasonably estimated. The Company believes the ultimate resolution of existing legal and regulatory matters will not have a material adverse effect on the financial condition, results of operations or cash flows of the Company. However, in light of the uncertainties inherent in these matters, it is possible that the ultimate resolution of one or more of these matters may have a material adverse effect on the Company’s results from operations for a particular period, and future changes in circumstances or additional information could result in additional accruals or resolution in excess of established accruals, which could adversely affect the Company’s results from operations, potentially materially.

Residential Mortgage-Backed Securities Litigation Starting in 2011, the Company and other large financial institutions have been sued in their capacity as trustee for residential mortgage–backed securities trusts. In the lawsuits brought against the Company, the investors allege that the Company’s banking subsidiary, U.S. Bank National Association (“U.S. Bank”), as trustee caused them to incur substantial losses by failing to enforce loan repurchase obligations and failing to abide by appropriate standards of care after events of default allegedly occurred. The plaintiffs in these matters seek monetary damages in unspecified amounts and most also seek equitable relief.

Regulatory Matters The Company is continually subject to examinations, inquiries and investigations in areas of heightened regulatory scrutiny, such as compliance, risk management, third-party risk management and consumer protection. The Company is cooperating fully with all pending examinations, inquiries and investigations, any of which could lead to administrative or legal proceedings or settlements. Remedies in these proceedings or settlements may include fines, penalties, restitution or alterations in the Company’s business practices (which may increase the Company’s operating expenses and decrease its revenue).

On July 27, 2022, U.S. Bank agreed to the issuance of a consent order with the Consumer Financial Protection Bureau resolving the previously disclosed investigation of certain of the Company’s consumer sales practices. The financial impact of the resolution was not material to the Company’s financial condition, results of operations or cash flows.

Outlook Due to their complex nature, it can be years before litigation and regulatory matters are resolved. The Company may be unable to develop an estimate or range of loss where matters are in early stages, there are significant factual or legal issues to be resolved, damages are unspecified or uncertain, or there is uncertainty as to a litigation class being certified or the outcome of pending motions, appeals or proceedings. For those litigation and regulatory matters where the Company has information to develop an estimate or range of loss, the Company believes the upper end of the range of reasonably possible losses in aggregate, in excess of any reserves established for matters where a loss is considered probable, will not be material to its financial condition, results of operations or cash flows. The Company’s estimates are subject to significant judgment and uncertainties, and the matters underlying the estimates will change from time to time. Actual results may vary significantly from the current estimates.

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Business Segments

6 Months Ended

Jun. 30, 2022

Text Block [Abstract]

Business Segments

Note  17    Business 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 five reportable operating segments:

Corporate and Commercial Banking Corporate and Commercial Banking offers lending, equipment finance and small-ticket leasing, depository services, treasury management, capital markets services, international trade services and other financial services to middle market, large corporate, commercial real estate, financial institution, non-profit and public sector clients.

Consumer and Business Banking Consumer and Business Banking delivers products and services through banking offices, telephone servicing and sales, on-line services, direct mail, ATM processing and mobile devices. It encompasses community banking, metropolitan banking and indirect lending, as well as mortgage banking.

Wealth Management and Investment Services Wealth Management and Investment Services provides private banking, financial advisory services, investment management, retail brokerage services, insurance, trust, custody and fund

servicing through four businesses: Wealth Management, Global Corporate Trust & Custody, U.S. Bancorp Asset Management and Fund Services.

Payment Services Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate, government and purchasing card services, consumer lines of credit 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 2022, certain organization and methodology changes were made and, accordingly, 2021 results were restated and presented on a comparable basis.

Business segment results for the three months ended June 30 were as follows:

	Corporate and Commercial Banking							Consumer and Business Banking						Wealth Management and Investment Services
(Dollars in Millions)	2022			2021				2022			2021			2022			2021
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	784		$	726			$	1,617		$	1,534		$	352		$	246
Noninterest income		272			265				395			634			652			549
Total net revenue		1,056			991				2,012			2,168			1,004			795
Nointerest expense		453			433				1,419			1,375			581			521
Income (loss) before provision and income taxes		603			558				593			793			423			274
Provision for credit losses		100			—				(75	)		(68	)		(4	)		(4	)
Income (loss) before income taxes		503			558				668			861			427			278
Income taxes and taxable-equivalent adjustment		126			140				167			215			107			70
Net income (loss)		377			418				501			646			320			208
Net (income) loss attributable to noncontrolling interests		—			—				—			—			—			—
Net income (loss) attributable to U.S. Bancorp	$	377		$	418			$	501		$	646		$	320		$	208
Average Balance Sheet
Loans	$	123,210		$	102,275			$	141,135		$	140,826		$	22,320		$	17,442
Other earning assets		4,161			4,409				2,579			8,018			251			237
Goodwill		1,912			1,647				3,244			3,476			1,718			1,618
Other intangible assets		4			5				3,634			2,828			300			84
Assets		137,773			114,186				156,132			161,695			25,786			20,470
Noninterest-bearing deposits		58,266			60,696				31,642			33,702			25,019			23,288
Interest-bearing deposits		93,678			70,019				168,486			158,164			71,759			73,347
Total deposits		151,944			130,715				200,128			191,866			96,778			96,635
Total U.S. Bancorp shareholders’ equity		13,989			13,816				12,366			12,337			3,618			3,089
	Payment Services							Treasury and Corporate Support						Consolidated Company
(Dollars in Millions)	2022			2021				2022			2021			2022			2021
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	619		$	595			$	92		$	63		$	3,464		$	3,164
Noninterest income		994	(a)		913	(a	)		235			258			2,548	(b)		2,619 (b)
Total net revenue		1,613			1,508				327			321			6,012 (c)			5,783 (c)
Noninterest expense		871			829				400			229			3,724			3,387
Income (loss) before provision and income taxes		742			679				(73	)		92			2,288			2,396
Provision for credit losses		221			91				69			(189	)		311			(170	)
Income (loss) before income taxes		521			588				(142	)		281			1,977			2,566
Income taxes and taxable-equivalent adjustment		130			147				(87	)		6			443			578
Net income (loss)		391			441				(55	)		275			1,534			1,988
Net (income) loss attributable to noncontrolling interests		—			—				(3	)		(6	)		(3	)		(6	)
Net income (loss) attributable to U.S. Bancorp	$	391		$	441			$	(58	)	$	269		$	1,531		$	1,982
Average Balance Sheet
Loans	$	33,854		$	30,030			$	3,668		$	3,711		$	324,187		$	294,284
Other earning assets		1,023			5				204,560			193,798			212,574			206,467
Goodwill		3,318			3,176				—			—			10,192			9,917
Other intangible assets		438			518				—			—			4,376			3,435
Assets		41,054			35,618				219,166			219,396			579,911			551,365
Noninterest-bearing deposits		3,396			5,030				2,504			2,581			120,827			125,297
Interest-bearing deposits		167			141				1,599			2,242			335,689			303,913
Total deposits		3,563			5,171				4,103			4,823			456,516			429,210
Total U.S. Bancorp shareholders’ equity		8,115			7,413				11,078			16,307			49,166			52,962

(a) Presented net of related rewards and rebate costs and certain partner payments of $772 million and $633 million for the three months ended June 30, 2022 and 2021, respectively.

(b) Includes revenue generated from certain contracts with customers of $2.0 billion and $1.9 billion for the three months ended June 30, 2022 and 2021, respectively.

(c) The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Under these arrangments, the Company recorded $188 million and $238 million of revenue for the three months ended June 30, 2022 and 2021, 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:

	Corporate and Commercial Banking							Consumer and Business Banking						Wealth Management and Investment Services
(Dollars in Millions)	2022		2021					2022			2021			2022			2021
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	1,523	$	1,448				$	3,129		$	3,035		$	627		$	514
Noninterest income		517		533					856			1,203			1,248			1,080
Total net revenue		2,040		1,981					3,985			4,238			1,875			1,594
Nointerest expense		878		853					2,839			2,731			1,174			1,020
Income (loss) before provision and income taxes		1,162		1,128					1,146			1,507			701			574
Provision for credit losses		104		(46	)				(28	)		(108	)		4			1
Income (loss) before income taxes		1,058		1,174					1,174			1,615			697			573
Income taxes and taxable-equivalent adjustment		265		294					294			404			175			144
Net income (loss)		793		880					880			1,211			522			429
Net (income) loss attributable to noncontrolling interests		—		—					—			—			—			—
Net income (loss) attributable to U.S. Bancorp	$	793	$	880				$	880		$	1,211		$	522		$	429
Average Balance Sheet
Loans	$	119,557	$	102,201				$	140,984		$	141,170		$	21,521		$	17,147
Other earning assets		4,416		4,364					3,475			9,092			255			258
Goodwill		1,912		1,647					3,252			3,476			1,739			1,618
Other intangible assets		4		5					3,406			2,661			283			63
Assets		132,856		114,229					156,770			162,803			25,124			20,297
Noninterest-bearing deposits		60,298		58,524					31,807			33,244			26,204			22,339
Interest-bearing deposits		90,336		70,943					167,279			154,450			71,024			78,489
Total deposits		150,634		129,467					199,086			187,694			97,228			100,828
Total U.S. Bancorp shareholders’ equity		13,859		14,092					12,311			12,407			3,607			3,062
	Payment Services							Treasury and Corporate Support						Consolidated Company
(Dollars in Millions)	2022		2021					2022			2021			2022			2021
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	1,241	$	1,224				$	144		$	32		$	6,664		$	6,253
Noninterest income		1,852 (a)		1,698		(a	)		471			486			4,944 (b)			5,000 (b)
Total net revenue		3,093		2,922					615			518			11,608 (c)			11,253 (c)
Noninterest expense		1,726		1,627					609			535			7,226			6,766
Income (loss) before provision and income taxes		1,367		1,295					6			(17	)		4,382			4,487
Provision for credit losses		351		50					(8	)		(894	)		423			(997	)
Income (loss) before income taxes		1,016		1,245					14			877			3,959			5,484
Income taxes and taxable-equivalent adjustment		254		311					(121	)		58			867			1,211
Net income (loss)		762		934					135			819			3,092			4,273
Net (income) loss attributable to noncontrolling interests		—		—					(4	)		(11	)		(4	)		(11	)
Net income (loss) attributable to U.S. Bancorp	$	762	$	934				$	131		$	808		$	3,088		$	4,262
Average Balance Sheet
Loans	$	32,802	$	29,831				$	3,744		$	3,789		$	318,608		$	294,138
Other earning assets		1,023		5					205,541			191,382			214,710			205,101
Goodwill		3,322		3,175					—			—			10,225			9,916
Other intangible assets		450		530					—			—			4,143			3,259
Assets		39,803		35,356					224,110			217,372			578,663			550,057
Noninterest-bearing deposits		3,534		5,146					2,532			2,591			124,375			121,844
Interest-bearing deposits		164		137					2,174			1,932			330,977			305,951
Total deposits		3,698		5,283					4,706			4,523			455,352			427,795
Total U.S. Bancorp shareholders’ equity		8,067		7,535					13,460			15,750			51,304			52,846

(a) Presented net of related rewards and rebate costs and certain partner payments of $1.4 billion and $1.2 billion for the six months ended June 30, 2022 and 2021, respectively.

(b) Includes revenue generated from certain contracts with customers of $3.9 billion and $3.6 billion for the six months ended June 30, 2022 and 2021, respectively.

(c) The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Under these arrangments, the Company recorded $392 million and $466 million of revenue for the six months ended June 30, 2022 and 2021, respectively, primarily consisting of interest income on sales-type and direct financing leases.

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Subsequent Events

6 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

 Note 18    Subsequent Events

The Company has evaluated the impact of events that have occurred subsequent to June 30, 2022 through the date the consolidated financial statements were filed with the United States Securities and Exchange Commission. Based on this evaluation, the Company has determined none of these events were required to be recognized or disclosed in the consolidated financial statements and related notes.

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Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flow activity required in accordance with accounting principles generally accepted in the United States. In the opinion of management of U.S. Bancorp (the “Company”), all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of results for the interim periods have been made. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Certain amounts in prior periods have been reclassified to conform to the current period presentation.

Loans and Allowance for Credit Losses

Loans and Allowance for Credit LossesOriginated loans are reported at the principal amount outstanding, net of unearned interest and deferred fees and costs, and any partial charge-offs recorded.All purchased loans are recorded at fair value at the date of purchase. The Company evaluates purchased loans for more-than-insignificant deterioration at the date of purchase in accordance with applicable authoritative accounting guidance. Purchased loans that have experienced more-than-insignificant deterioration from origination are considered purchased credit deteriorated loans. All other purchased loans are considered non-purchased credit deteriorated loans.

Allowance for Credit Losses The allowance for credit losses is established for current expected credit losses on the Company’s loan and lease portfolio, including unfunded credit commitments. The allowance considers expected losses for the remaining lives of the applicable assets, inclusive of expected recoveries. The allowance for credit losses is increased through provisions charged to earnings and reduced by net charge-offs. Management evaluates the appropriateness of the allowance for credit losses on a quarterly basis.

Multiple economic scenarios are considered over a three-year reasonable and supportable forecast period, which includes increasing consideration of historical loss experience over years two and three. These economic scenarios are constructed with interrelated projections of multiple economic variables, and loss estimates are produced that consider the historical correlation of those economic variables with credit losses. After the forecast period, the Company fully reverts to long-term historical loss experience, adjusted for prepayments and characteristics of the current loan and lease portfolio, to estimate losses over the remaining life of the portfolio. The economic scenarios are updated at least quarterly and are designed to provide a range of reasonable estimates, from better to worse than current expectations. Scenarios are weighted based on the Company’s expectation of economic conditions for the foreseeable future and reflect significant judgment and consideration of economic forecast uncertainty. Final loss estimates also consider factors affecting credit losses not reflected in the scenarios, due to the unique aspects of current conditions and expectations. These factors may include, but are not limited to, loan servicing practices, regulatory guidance, and/or fiscal and monetary policy actions.

The allowance recorded for credit losses utilizes forward-looking expected loss models to consider a variety of factors affecting lifetime credit losses. These factors include, but are not limited to, macroeconomic variables such as unemployment rates, real estate prices, gross domestic product levels and corporate bonds spreads, as well as loan and

borrower characteristics, such as internal risk ratings on commercial loans and consumer credit scores, delinquency status, collateral type and available valuation information, consideration of end-of-term losses on lease residuals, and the remaining term of the loan, adjusted for expected prepayments. For each loan portfolio, model estimates are adjusted as necessary to consider any relevant changes in portfolio composition, lending policies, underwriting standards, risk management practices, economic conditions or other factors that would affect the accuracy of the model. Expected credit loss estimates also include consideration of expected cash recoveries on loans previously charged-off or expected recoveries on collateral dependent loans where recovery is expected through sale of the collateral. Where loans do not exhibit similar risk characteristics, an individual analysis is performed to consider expected credit losses. The allowance recorded for individually evaluated loans greater than $5 million in the commercial lending segment is based on an analysis utilizing expected cash flows discounted using the original effective interest rate, the observable market price of the loan, or the fair value of the collateral, less selling costs, for collateral-dependent loans as appropriate.

The allowance recorded for Troubled Debt Restructuring (“TDR”) loans in the consumer lending segment is determined on a homogenous pool basis utilizing expected cash flows discounted using the original effective interest rate of the pool. The expected cash flows on TDR loans consider subsequent payment defaults since modification, the borrower’s ability to pay under the restructured terms, and the timing and amount of payments. The allowance for collateral-dependent loans in the consumer lending segment is determined based on the fair value of the collateral less costs to sell. For commercial TDRs individually evaluated for impairment, attributes of the borrower are the primary factors in determining the allowance for credit losses. For smaller commercial loans collectively evaluated for impairment, historical loss experience is also incorporated into the allowance methodology applied to this category of loans.

The Company’s methodology for determining the appropriate allowance for credit losses also considers the imprecision inherent in the methodologies used and allocated to the various loan portfolios. As a result, amounts determined under the methodologies described above, are adjusted by management to consider the potential impact of other qualitative factors not captured in the quantitative model adjustments which include, but are not limited to the following: model imprecision, imprecision in economic scenario assumptions, and emerging risks related to either changes in the environment that are affecting specific portfolios, or changes in portfolio concentrations over time that may affect model performance. The consideration of these items results in adjustments to allowance amounts included in the Company’s allowance for credit losses for each loan portfolio.

The Company also assesses the credit risk associated with off-balance sheet loan commitments, letters of credit, investment securities and derivatives. Credit risk associated with derivatives is reflected in the fair values recorded for those positions. The liability for off-balance sheet credit exposure related to loan commitments and other credit guarantees is included in other liabilities. Because business processes and credit risks associated with unfunded credit commitments are essentially the same as for loans, the Company utilizes similar processes to estimate its liability for unfunded credit commitments.

The results of the analysis are evaluated quarterly to confirm the estimates are appropriate for each specific loan portfolio, as well as the entire loan portfolio, as the entire allowance for credit losses is available for the entire loan portfolio.

Credit Quality The credit quality of the Company’s loan portfolios is assessed as a function of net credit losses, levels of nonperforming assets and delinquencies, and credit quality ratings as defined by the Company.

For all loan portfolio classes, loans are considered past due based on the number of days delinquent except for monthly amortizing loans which are classified delinquent based upon the number of contractually required payments not made (for example, two missed payments is considered 30 days delinquent). When a loan is placed on nonaccrual status, unpaid accrued interest is reversed, reducing interest income in the current period.

Commercial lending segment loans are generally placed on nonaccrual status when the collection of principal and interest has become 90 days past due or is otherwise considered doubtful. Commercial lending segment loans are generally fully charged down if unsecured by collateral or partially charged down to the fair value of the collateral securing the loan, less costs to sell, when the loan is placed on nonaccrual.

Consumer lending segment loans are generally charged-off at a specific number of days or payments past due. Residential mortgages and other retail loans secured by 1-4 family properties are generally charged down to the fair value of the collateral securing the loan, less costs to sell, at 180 days past due. Residential mortgage loans and lines in a first lien position are placed on nonaccrual status in instances where a partial charge-off occurs unless the loan is well secured and in the process of collection. Residential mortgage loans and lines in a junior lien position secured by 1-4 family properties are placed on nonaccrual status at 120 days past due or when they are behind a first lien that has

become 180 days or greater past due or placed on nonaccrual status. Any secured consumer lending segment loan whose borrower has had debt discharged through bankruptcy, for which the loan amount exceeds the fair value of the collateral, is charged down to the fair value of the related collateral and the remaining balance is placed on nonaccrual status. Credit card loans continue to accrue interest until the account is charged-off. Credit cards are charged-off at 180 days past due. Other retail loans not secured by 1-4 family properties are charged-off at 120 days past due; and revolving consumer lines are charged-off at 180 days past due. Similar to credit cards, other retail loans are generally not placed on nonaccrual status because of the relative short period of time to charge-off. Certain retail customers having financial difficulties may have the terms of their credit card and other loan agreements modified to require only principal payments and, as such, are reported as nonaccrual.

For all loan classes, interest payments received on nonaccrual loans are generally recorded as a reduction to a loan’s carrying amount while a loan is on nonaccrual and are recognized as interest income upon payoff of the loan. However, interest income may be recognized for interest payments if the remaining carrying amount of the loan is believed to be collectible. In certain circumstances, loans in any class may be restored to accrual status, such as when a loan has demonstrated sustained repayment performance or no amounts are past due and prospects for future payment are no longer in doubt; or when the loan becomes well secured and is in the process of collection. Loans where there has been a partial charge-off may be returned to accrual status if all principal and interest (including amounts previously charged-off) is expected to be collected and the loan is current.

The Company classifies its loan portfolio classes using internal credit quality ratings on a quarterly basis. These ratings include pass, special mention and classified, and are an important part of the Company’s overall credit risk management process and evaluation of the allowance for credit losses. Loans with a pass rating represent those loans not classified on the Company’s rating scale for problem credits, as minimal credit risk has been identified. Special mention loans are those loans that have a potential weakness deserving management’s close attention. Classified loans

are those loans where a well-defined weakness has been identified that may put full collection of contractual cash flows at risk. It is possible that others, given the same information, may reach different reasonable conclusions regarding the credit quality rating classification of specific loans.

Troubled Debt RestructuringsIn certain circumstances, the Company may modify the terms of a loan to maximize the collection of amounts due when a borrower is experiencing financial difficulties or is expected to experience difficulties in the near-term. Concessionary modifications are classified as TDRs unless the modification results in only an insignificant delay in payments to be received. The Company recognizes interest on TDRs if the borrower complies with the revised terms and conditions as agreed upon with the Company and has demonstrated repayment performance at a level commensurate with the modified terms over several payment cycles, which is generally six months or greater. To the extent a previous restructuring was insignificant, the Company considers the cumulative effect of past restructurings related to the receivable when determining whether a current restructuring is a TDR.

The Company has implemented certain restructuring programs that may result in TDRs. However, many of the Company’s TDRs are also determined on a case-by-case basis in connection with ongoing loan collection processes.

For the commercial lending segment, modifications generally result in the Company working with borrowers on a case-by-case basis. Commercial and commercial real estate modifications generally include extensions of the maturity date and may be accompanied by an increase or decrease to the interest rate, which may not be deemed a market interest rate. In addition, the Company may work with the borrower in identifying other changes that mitigate loss to the Company, which may include additional collateral or guarantees to support the loan. To a lesser extent, the Company may waive contractual principal. The Company classifies all of the above concessions as TDRs to the extent the Company determines that the borrower is experiencing financial difficulty.

Modifications for the consumer lending segment are generally part of programs the Company has initiated. The Company modifies residential mortgage loans under Federal Housing Administration, United States Department of Veterans Affairs, or its own internal programs. Under these programs, the Company offers qualifying homeowners the opportunity to permanently modify their loan and achieve more affordable monthly payments by providing loan concessions. These concessions may include adjustments to interest rates, conversion of adjustable rates to fixed rates, extension of maturity dates or deferrals of payments, capitalization of accrued interest and/or outstanding advances, or in limited situations, partial forgiveness of loan principal. In most instances, participation in residential mortgage loan restructuring programs requires the customer to complete a short-term trial period. A permanent loan modification is contingent on the customer successfully completing the trial period arrangement, and the loan documents are not modified until that time. The Company reports loans in a trial period arrangement as TDRs and continues to report them as TDRs after the trial period.

Credit card and other retail loan TDRs are generally part of distinct restructuring programs providing customers experiencing financial difficulty with modifications whereby balances may be amortized up to 60 months, and generally include waiver of fees and reduced interest rates.

In addition, the Company considers secured loans to consumer borrowers that have debt discharged through bankruptcy where the borrower has not reaffirmed the debt to be TDRs.

Accounting Changes

Accounting Changes

Reference Interest Rate Transition In March 2020, the Financial Accounting Standards Board (“FASB”) issued accounting guidance, providing temporary optional expedients and exceptions to the guidance in United States generally accepted accounting principles on contract modifications and hedge accounting, to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. Under the guidance, a company can elect not to apply certain modification accounting requirements to contracts affected by reference rate transition, if certain criteria are met. A company that makes this election would not be required to remeasure the contracts at the modification date or reassess a previous accounting determination. This guidance also permits a company to elect various optional expedients that would allow it to continue applying hedge accounting for hedging relationships affected by reference rate transition, if certain criteria are met. The guidance is effective upon issuance and generally can be applied through December 31, 2022. The Company is in the process of evaluating and applying, as applicable, the optional expedients and exceptions in accounting for eligible contract modifications, eligible existing hedging relationships and new hedging relationships available through December 31, 2022. The adoption of this guidance has not had, and is expected to continue to not have, a material impact on the Company’s financial statements.

Fair Value Hedging – Portfolio Layer Method In March 2022, the FASB issued accounting guidance, effective for the Company no later than January 1, 2023, related to fair value hedge accounting of portfolios of financial assets. This guidance expands the current last-of-layer hedging method that permits a company to apply fair value hedging to a stated amount of a closed portfolio of prepayable financial assets, by allowing it to designate multiple hedging relationships on a single closed portfolio, resulting in a larger portion of the interest rate risk associated with such a portfolio being eligible to be hedged. The guidance also expands the scope of the method to include non-prepayable financial assets and clarifies other technical questions from the original accounting guidance. The Company expects the adoption of this guidance will not be material to its financial statements.

Financial Instruments – Troubled Debt Restructurings and Vintage Disclosures In March 2022, the FASB issued accounting guidance, effective for the Company no later than January 1, 2023, related to the recognition and measurement of troubled debt restructurings (“TDRs”) by creditors. This guidance removes the separate recognition and measurement requirements for TDRs by replacing them with a requirement for a company to apply existing accounting guidance to determine whether a modification results in a new loan or a continuation of an existing loan. This guidance also replaces existing TDR disclosures with similar but more expansive disclosures for certain modifications of receivables made to borrowers experiencing financial difficulty. Further, this guidance also requires companies to disclose current-period gross write-offs by year of origination for financing receivables. The guidance can be adopted on a prospective or modified retrospective basis. The Company expects the adoption of this guidance will not be material to its financial statements.

Accounting for Transfers and Servicing of Financial Assets

In accordance with the accounting guidance for asset transfers, the Company considers any ongoing involvement with transferred assets in determining whether the assets can be derecognized from the balance sheet.For loans sold under participation agreements, the Company also considers whether the terms of the loan participation agreement meet the accounting definition of a participating interest. With the exception of servicing and certain performance-based guarantees, the Company’s continuing involvement with financial assets sold is minimal and generally limited to market customary representation and warranty clauses. Any gain or loss on sale depends on the previous carrying amount of the transferred financial assets, the consideration received, and any liabilities incurred in exchange for the transferred assets. Upon transfer, any servicing assets and other interests that continue to be held by the Company are initially recognized at fair value.

Variable Interest Entities

The Company is required to consolidate VIEs in which it has concluded it has a controlling financial interest.The majority of the assets of these consolidated VIEs are reported in other assets, and the liabilities are reported in long-term debt and other liabilities. The assets of a particular VIE are the primary source of funds to settle its obligations. The creditors of the VIEs do not have recourse to the general credit of the Company. The Company’s exposure to the consolidated VIEs is generally limited to the carrying value of its variable interests plus any related tax credits previously recognized or transferred to others with a guarantee.The Company is not required to consolidate VIEs in which it has concluded it does not have a controlling financial interest, and thus is not the primary beneficiary. In such cases, the Company does not have both the power to direct the entities’ most significant activities and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs.

Netting Arrangements for Certain Financial Instruments

The Company’s derivative contracts typically include offsetting rights (referred to as netting arrangements), and depending on expected volume, credit risk, and counterparty preference, collateral maintenance may be required. For all derivatives under collateral support arrangements, fair value is determined daily and, depending on the collateral maintenance requirements, the Company and a counterparty may receive or deliver collateral, based upon the net fair value of all derivative positions between the Company and the counterparty. Collateral is typically cash, but securities may be allowed under collateral arrangements with certain counterparties. Receivables and payables related to cash collateral are included in other assets and other liabilities on the Consolidated Balance Sheet, along with the related derivative asset and liability fair values. Any securities pledged to counterparties as collateral remain on the Consolidated Balance Sheet. Securities received from counterparties as collateral are not recognized on the Consolidated Balance Sheet, unless the counterparty defaults. In general, securities used as collateral can be sold, repledged or otherwise used by the party in possession. No restrictions exist on the use of cash collateral by either party. Refer to Note 13 for further discussion of the Company’s derivatives, including collateral arrangements.

As part of the Company’s treasury and broker-dealer operations, the Company executes transactions that are treated as securities sold under agreements to repurchase or securities purchased under agreements to resell, both of which are accounted for as collateralized financings. Securities sold under agreements to repurchase include repurchase agreements and securities loaned transactions. Securities purchased under agreements to resell include reverse repurchase agreements and securities borrowed transactions. For securities sold under agreements to repurchase, the Company records a liability for the cash received, which is included in short-term borrowings on the Consolidated Balance Sheet. For securities purchased under agreements to resell, the Company records a receivable for the cash paid, which is included in other assets on the Consolidated Balance Sheet.

Securities transferred to counterparties under repurchase agreements and securities loaned transactions continue to be recognized on the Consolidated Balance Sheet, are measured at fair value, and are included in investment securities or other assets. Securities received from counterparties under reverse repurchase agreements and securities borrowed transactions are not recognized on the Consolidated Balance Sheet unless the counterparty defaults. The securities transferred under repurchase and reverse repurchase transactions typically are U.S. Treasury and agency securities, residential agency mortgage-backed securities or corporate debt securities. The securities loaned or borrowed typically are corporate debt securities traded by the Company’s broker-dealer subsidiary. In general, the securities transferred can be sold, repledged or otherwise used by the party in possession. No restrictions exist on the use of cash collateral by either party. Repurchase/reverse repurchase and securities loaned/borrowed transactions expose the Company to counterparty risk. The Company manages this risk by performing assessments, independent of business line managers, and establishing concentration limits on each counterparty. Additionally, these transactions include collateral arrangements that require the fair values of the underlying securities to be determined daily, resulting in cash being obtained or refunded to counterparties to maintain specified collateral levels.

The Company executes its derivative, repurchase/reverse repurchase and securities loaned/borrowed transactions under the respective industry standard agreements. These agreements include master netting arrangements that allow for multiple contracts executed with the same counterparty to be viewed as a single arrangement. This allows for net settlement of a single amount on a daily basis. In the event of default, the master netting arrangement provides for close-out netting, which allows all of these positions with the defaulting counterparty to be terminated and net settled with a single payment amount.

The Company has elected to offset the assets and liabilities under netting arrangements for the balance sheet presentation of the majority of its derivative counterparties. The netting occurs at the counterparty level, and includes all assets and liabilities related to the derivative contracts, including those associated with cash collateral received or delivered. The Company has not elected to offset the assets and liabilities under netting arrangements for the balance sheet presentation of repurchase/reverse repurchase and securities loaned/borrowed transactions.

Fair Values of Assets and Liabilities

Fair Values of Assets and Liabilities

The Company uses fair value measurements for the initial recording of certain assets and liabilities, periodic remeasurement of certain assets and liabilities, and disclosures. Derivatives, trading and available-for-sale investment securities, MSRs and substantially all MLHFS are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as loans held for sale, loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-fair value accounting or impairment write-downs of individual assets.

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value measurement reflects all of the assumptions that market participants would use in pricing the asset or liability, including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset and the risk of nonperformance.

The Company groups its assets and liabilities measured at fair value into a three-level hierarchy for valuation techniques used to measure financial assets and financial liabilities at fair value. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are:

• Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 1 includes U.S. Treasury securities, as well as exchange-traded instruments.

• Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 includes debt securities that are traded less frequently than exchange-traded instruments and which are typically valued using third party pricing services; derivative contracts and other assets and liabilities, including securities, whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data; and MLHFS whose values are determined using quoted prices for similar assets or pricing models with inputs that are observable in the market or can be corroborated by observable market data.

• Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category includes MSRs and certain derivative contracts.

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Investment Securities Available-for-Sale and Held-to-Maturity

The amortized cost, gross unrealized holding gains and losses, and fair value of held-to-maturity and available-for-sale investment securities were as follows:

	June 30, 2022									December 31, 2021
(Dollars in Millions)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Held-to-maturity
U.S. Treasury and agencies	$	1,343	$	–	$	(6	)	$	1,337	$	–	$	–	$	–		$	–
Residential agency mortgage-backed securities		60,160		2		(5,842	)		54,320		41,858		2		(48	)		41,812
Total held-to-maturity	$	61,503	$	2	$	(5,848	)	$	55,657	$	41,858	$	2	$	(48	)	$	41,812
Available-for-sale
U.S. Treasury and agencies	$	25,779	$	–	$	(2,012	)	$	23,767	$	36,648	$	205	$	(244	)	$	36,609
Mortgage-backed securities
Residential agency		62,788		23		(5,059	)		57,752		76,761		665		(347	)		77,079
Commercial agency		8,756		–		(1,192	)		7,564		8,633		53		(201	)		8,485
Asset-backed securities		–		–		–			–		62		4		–			66
Obligations of state and political subdivisions		10,925		11		(1,220	)		9,716		10,130		607		(20	)		10,717
Other		7		–		–			7		7		–		–			7
Total available-for-sale	$	108,255	$	34	$	(9,483	)	$	98,806	$	132,241	$	1,534	$	(812	)	$	132,963

Amount of Interest Income from Taxable and Non-Taxable Investment Securities

The following table provides information about the amount of interest income from taxable and non-taxable investment securities:

	Three Months Ended June 30				Six Months Ended June 30
(Dollars in Millions)	2022		2021		2022		2021
Taxable	$	732	$	554	$	1,378	$	1,009
Non-taxable		74		64		145		126
Total interest income from investment securities	$	806	$	618	$	1,523	$	1,135

Amount of Gross Gains and Losses Realized through Sales of Available-for-Sale Investment Securities

The following table provides information about the amount of gross gains and losses realized through the sales of available-for-sale investment securities:

	Three Months Ended June 30					Six Months Ended June 30
(Dollars in Millions)	2022			2021		2022			2021
Realized gains	$	144		$	43	$	386		$	68
Realized losses		(125	)		–		(349	)		–
Net realized gains	$	19		$	43	$	37		$	68
Income tax on net realized gains	$	5		$	11	$	9		$	17

Gross Unrealized Losses and Fair Value of Company's Investment Securities

The following table shows the gross unrealized losses and fair value of the Company’s available-for-sale investment securities with unrealized losses, aggregated by investment category and length of time the individual investment securities have been in continuous unrealized loss positions, at June 30, 2022:

	Less Than 12 Months					12 Months or Greater					Total
(Dollars in Millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury and agencies	$	19,590	$	(1,581	)	$	3,511	$	(431	)	$	23,101	$	(2,012	)
Residential agency mortgage-backed securities		50,819		(4,281	)		5,360		(778	)		56,179		(5,059	)
Commercial agency mortgage-backed securities		4,852		(657	)		2,711		(535	)		7,563		(1,192	)
Obligations of state and political subdivisions		8,430		(1,057	)		396		(163	)		8,826		(1,220	)
Other		6		–			–		–			6		–
Total investment securities	$	83,697	$	(7,576	)	$	11,978	$	(1,907	)	$	95,675	$	(9,483	)

Investment Securities

The following table provides information about the amortized cost, fair value and yield by maturity date of the investment securities outstanding at June 30, 2022:

(Dollars in Millions)	Amortized Cost		Fair Value		Weighted- Average Maturity in Years		Weighted- Average Yield (e)
Held-to-maturity
U.S. Treasury and Agencies
Maturing in one year or less	$	–	$	–		–		–	%
Maturing after one year through five years		1,343		1,337		3.8		2.85
Maturing after five years through ten years		–		–		–		–
Maturing after ten years		–		–		–		–
Total	$	1,343	$	1,337		3.8		2.85	%
Mortgage-Backed Securities (a)
Maturing in one year or less	$	–	$	–		–		–	%
Maturing after one year through five years		–		–		–		–
Maturing after five years through ten years		23,977		22,825		9.1		2.22
Maturing after ten years		36,183		31,495		10.6		1.72
Total	$	60,160	$	54,320		10.0		1.92	%
Total held-to-maturity (d)	$	61,503	$	55,657		9.8		1.94	%
Available-for-sale
U.S. Treasury and Agencies
Maturing in one year or less	$	1,826	$	1,824		.3		1.96	%
Maturing after one year through five years		3,525		3,296		4.4		1.50
Maturing after five years through ten years		17,771		16,479		7.4		2.04
Maturing after ten years		2,657		2,168		11.8		1.99
Total	$	25,779	$	23,767		6.9		1.95	%
Mortgage-Backed Securities (a)
Maturing in one year or less	$	44	$	44		.7		2.67	%
Maturing after one year through five years		12,785		12,381		3.2		2.03
Maturing after five years through ten years		33,303		30,454		7.9		1.81
Maturing after ten years		25,412		22,437		10.6		2.11
Total	$	71,544	$	65,316		8.0		1.96	%
Obligations of State and Political Subdivisions (b) (c)
Maturing in one year or less	$	182	$	182		.3		4.63	%
Maturing after one year through five years		1,974		1,955		4.0		4.43
Maturing after five years through ten years		1,480		1,401		7.2		3.82
Maturing after ten years		7,289		6,178		16.9		3.36
Total	$	10,925	$	9,716		13.0		3.64	%
Other
Maturing in one year or less	$	–	$	–		–		–	%
Maturing after one year through five years		7		7		2.9		2.07
Maturing after five years through ten years		–		–		–		–
Maturing after ten years		–		–		–		–
Total	$	7	$	7		2.9		2.07	%
Total available-for-sale (d)	$	108,255	$	98,806		8.2		2.13	%

(a) Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future prepayments.

(b) Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to maturity if the security is purchased at par or a discount.

(c) Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity date for securities with a fair value equal to or below par.

(d) The weighted-average maturity of total held-to-maturity investment securities was 7.4 years at December 31, 2021, with a corresponding weighted-average yield of 1.45 percent. The weighted-average maturity of total available-for-sale investment securities was 5.5 years at December 31, 2021, with a corresponding weighted-average yield of 1.73 percent.

(e) Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent. Yields on investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity.

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Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Composition of Loan Portfolio

The composition of the loan portfolio, disaggregated by class and underlying specific portfolio type, was as follows:

	June 30, 2022					December 31, 2021
(Dollars in Millions)	Amount		Percent of Total			Amount		Percent of Total
Commercial
Commercial	$	121,130		36.4	%	$	106,912		34.3	%
Lease financing		4,853		1.5			5,111		1.6
Total commercial		125,983		37.9			112,023		35.9
Commercial Real Estate
Commercial mortgages		29,864		9.0			28,757		9.2
Construction and development		9,889		3.0			10,296		3.3
Total commercial real estate		39,753		12.0			39,053		12.5
Residential Mortgages
Residential mortgages		73,522		22.1			67,546		21.6
Home equity loans, first liens		8,592		2.6			8,947		2.9
Total residential mortgages		82,114		24.7			76,493		24.5
Credit Card		23,697		7.1			22,500		7.2
Other Retail
Retail leasing		6,490		2.0			7,256		2.3
Home equity and second mortgages		10,973		3.3			10,446		3.4
Revolving credit		2,764		.8			2,750		.9
Installment		16,656		5.0			16,514		5.3
Automobile		23,830		7.2			24,866		8.0
Student		109		–			127		–
Total other retail		60,822		18.3			61,959		19.9
Total loans	$	332,369		100.0	%	$	312,028		100.0	%

Activity in Allowance for Credit Losses by Portfolio Class

Activity in the allowance for credit losses by portfolio class was as follows:

Three Months Ended June 30 (Dollars in Millions)	Commercial			Commercial Real Estate			Residential Mortgages			Credit Card			Other Retail			Total Loans
2022
Balance at beginning of period		$1,836			$1,074			$600			$1,639			$   956			$6,105
Add
Provision for credit losses		90			(95	)		49			225			42			311
Deduct
Loans charged-off		53			9			2			162			50			276
Less recoveries of loans charged-off		(23	)		(3	)		(11	)		(44	)		(34	)		(115	)
Net loan charge-offs (recoveries)		30			6			(9	)		118			16			161
Balance at end of period		$1,896			$   973			$658			$1,746			$   982			$6,255
2021
Balance at beginning of period		$1,932			$1,532			$539			$1,952			$1,005			$6,960
Add
Provision for credit losses		(67	)		(123	)		(71	)		87			4			(170	)
Deduct
Loans charged-off		58			4			5			192			55			314
Less recoveries of loans charged-off		(31	)		(4	)		(15	)		(44	)		(40	)		(134	)
Net loan charge-offs (recoveries)		27			–			(10	)		148			15			180
Balance at end of period		$1,838			$1,409			$478			$1,891			$   994			$6,610

Six Months Ended June 30 (Dollars in Millions)	Commercial			Commercial Real Estate			Residential Mortgages			Credit Card			Other Retail			Total Loans
2022
Balance at beginning of period		$1,849			$1,123			$565			$1,673			$   945			$6,155
Add
Provision for credit losses		109			(149	)		78			303			82			423
Deduct
Loans charged-off		108			10			7			320			111			556
Less recoveries of loans charged-off		(46	)		(9	)		(22	)		(90	)		(66	)		(233	)
Net loan charge-offs (recoveries)		62			1			(15	)		230			45			323
Balance at end of period		$1,896			$   973			$658			$1,746			$   982			$6,255
2021
Balance at beginning of period		$2,423			$1,544			$573			$2,355			$1,115			$8,010
Add
Provision for credit losses		(502	)		(142	)		(110	)		(172	)		(71	)		(997	)
Deduct
Loans charged-off		144			14			10			382			138			688
Less recoveries of loans charged-off		(61	)		(21	)		(25	)		(90	)		(88	)		(285	)
Net loan charge-offs (recoveries)		83			(7	)		(15	)		292			50			403
Balance at end of period		$1,838			$1,409			$478			$1,891			$   994			$6,610

Summary of Loans by Portfolio Class, Including Delinquency Status of those that Continue to Accrue Interest and are Nonperforming

The following table provides a summary of loans by portfolio class, including the delinquency status of those that continue to accrue interest, and those that are nonperforming:

	Accruing
(Dollars in Millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Nonperforming (b)		Total
June 30, 2022
Commercial	$	125,490		$   254		$  91		$148		$125,983
Commercial real estate		39,519		24		4		206		39,753
Residential mortgages (a)		81,689		100		102		223		82,114
Credit card		23,333		200		164		–		23,697
Other retail		60,376		236		62		148		60,822
Total loans	$	330,407		$   814		$423		$725		$332,369
December 31, 2021
Commercial	$	111,270		$   530		$49		$174		$112,023
Commercial real estate		38,678		80		11		284		39,053
Residential mortgages (a)		75,962		124		181		226		76,493
Credit card		22,142		193		165		–		22,500
Other retail		61,468		275		66		150		61,959
Total loans	$	309,520		$1,202		$472		$834		$312,028

(a) At June 30, 2022, $642 million of loans 30–89 days past due and $1.7 billion of loans 90 days or more past due purchased and loans that could be purchased from Government National Mortgage Association (“GNMA”) mortgage pools under delinquent loan repurchase options whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current, compared with $791 million and $1.5 billion at December 31, 2021, respectively.

(b) Substantially all nonperforming loans at June 30, 2022 and December 31, 2021, had an associated allowance for credit losses. The Company recognized interest income on nonperforming loans of $5 million and $4 million for the three months ended June 30, 2022 and 2021, respectively, and $8 million and $7 million for the six months ended June 30, 2022 and 2021, respectively.

Summary of Loans by Portfolio Class and Company's Internal Credit Quality Rating

The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating:

	June 30, 2022										December 31, 2021
			Criticized										Criticized
(Dollars in Millions)	Pass		Special Mention		Classified (a)		Total Criticized		Total		Pass		Special Mention		Classified (a)		Total Criticized		Total
Commercial
Originated in 2022		$  32,672		$     52		$   142		$   194		$  32,866		$          –		$       –		$       –		$         –		$          –
Originated in 2021		40,532		298		110		408		40,940		51,155		387		287		674		51,829
Originated in 2020		9,809		11		292		303		10,112		14,091		304		133		437		14,528
Originated in 2019		6,624		6		61		67		6,691		10,159		151		54		205		10,364
Originated in 2018		3,313		3		20		23		3,336		5,122		3		36		39		5,161
Originated prior to 2018		3,902		18		38		56		3,958		4,923		30		81		111		5,034
Revolving (b)		27,628		277		175		452		28,080		24,722		268		117		385		25,107
Total commercial		124,480		665		838		1,503		125,983		110,172		1,143		708		1,851		112,023
Commercial real estate
Originated in 2022		6,689		148		449		597		7,286		–		–		–		–		–
Originated in 2021		11,992		63		452		515		12,507		13,364		6		990		996		14,360
Originated in 2020		6,570		16		181		197		6,767		7,459		198		263		461		7,920
Originated in 2019		5,009		140		340		480		5,489		6,368		251		610		861		7,229
Originated in 2018		2,348		29		211		240		2,588		2,996		29		229		258		3,254
Originated prior to 2018		3,438		19		143		162		3,600		4,473		55		224		279		4,752
Revolving		1,511		–		5		5		1,516		1,494		1		43		44		1,538
Total commercial real estate		37,557		415		1,781		2,196		39,753		36,154		540		2,359		2,899		39,053
Residential mortgages (c)
Originated in 2022		12,396		–		–		–		12,396		–		–		–		–		–
Originated in 2021		29,446		–		3		3		29,449		29,882		–		3		3		29,885
Originated in 2020		14,384		–		10		10		14,394		15,948		1		8		9		15,957
Originated in 2019		5,834		–		24		24		5,858		6,938		–		36		36		6,974
Originated in 2018		2,383		–		18		18		2,401		2,889		–		30		30		2,919
Originated prior to 2018		17,328		–		288		288		17,616		20,415		–		342		342		20,757
Revolving		–		–		–		–		–		1		–		–		–		1
Total residential mortgages		81,771		–		343		343		82,114		76,073		1		419		420		76,493
Credit card (d)		23,532		–		165		165		23,697		22,335		–		165		165		22,500
Other retail
Originated in 2022		7,650		–		1		1		7,651		–		–		–		–		–
Originated in 2021		18,825		–		8		8		18,833		22,455		–		6		6		22,461
Originated in 2020		9,981		–		10		10		9,991		12,071		–		9		9		12,080
Originated in 2019		5,476		–		13		13		5,489		7,223		–		17		17		7,240
Originated in 2018		2,204		–		10		10		2,214		3,285		–		14		14		3,299
Originated prior to 2018		2,626		–		18		18		2,644		3,699		–		24		24		3,723
Revolving		13,381		–		113		113		13,494		12,532		–		112		112		12,644
Revolving converted to term		464		–		42		42		506		472		–		40		40		512
Total other retail		60,607		–		215		215		60,822		61,737		–		222		222		61,959
Total loans		$327,947		$1,080		$3,342		$4,422		$332,369		$306,471		$1,684		$3,873		$5,557		$312,028
Total outstanding commitments		$702,561		$2,021		$4,851		$6,872		$709,433		$662,363		$3,372		$5,684		$9,056		$671,419

Note: Year of origination is based on the origination date of a loan, or for existing loans the date when the maturity date, pricing or commitment amount is amended.

(a) Classified rating on consumer loans primarily based on delinquency status.

(b) Includes an immaterial amount of revolving converted to term loans.

(c) At June 30, 2022, $1.7 billion of GNMA loans 90 days or more past due and $965 million of restructured GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs were classified with a pass rating, compared with $1.5 billion and $1.1 billion at December 31, 2021, respectively.

(d) Predominately all credit card loans are considered revolving loans. Includes an immaterial amount of revolving converted to term loans.

Summary of Loans Modified as TDRs

The following table provides a summary of loans modified as TDRs for the periods presented by portfolio class:

	2022						2021
(Dollars in Millions)	Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance		Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance
Three Months Ended June 30
Commercial		506		$     50		$  41		526		$     12		$     13
Commercial real estate		28		11		9		30		38		41
Residential mortgages		366		106		106		360		141		140
Credit card		8,696		48		49		5,050		31		31
Other retail		756		24		20		468		18		17
Total loans, excluding loans purchased from GNMA mortgage pools		10,352		239		225		6,434		240		242
Loans purchased from GNMA mortgage pools		353		47		50		478		67		69
Total loans		10,705		$   286		$275		6,912		$   307		$   311
Six Months Ended June 30
Commercial		1,015		$     88		$  73		1,230		$     87		$     73
Commercial real estate		37		22		19		86		124		112
Residential mortgages		1,206		334		332		696		245		244
Credit card		18,035		98		99		10,836		64		65
Other retail		1,484		61		57		1,793		55		49
Total loans, excluding loans purchased from GNMA mortgage pools		21,777		603		580		14,641		575		543
Loans purchased from GNMA mortgage pools		743		102		105		1,037		154		158
Total loans		22,520		$   705		$685		15,678		$   729		$   701

Summary of Loans Modified as TDRs in the Past Twelve Months that have Subsequently Defaulted

The following table provides a summary of TDR loans that defaulted (fully or partially charged-off or became 90 days or more past due) for the periods presented, that were modified as TDRs within 12 months previous to default:

	2022				2021
(Dollars in Millions)	Number of Loans		Amount Defaulted		Number of Loans		Amount Defaulted
Three Months Ended June 30
Commercial		175		$  3		327		$    8
Commercial real estate		2		1		5		1
Residential mortgages		79		7		12		1
Credit card		1,727		9		1,805		11
Other retail		60		1		191		3
Total loans, excluding loans purchased from GNMA mortgage pools		2,043		21		2,340		24
Loans purchased from GNMA mortgage pools		120		17		43		6
Total loans		2,163		$38		2,383		$  30
Six Months Ended June 30
Commercial		389		$  6		612		$  24
Commercial real estate		5		2		12		6
Residential mortgages		113		10		27		3
Credit card		3,361		18		3,569		20
Other retail		143		2		471		8
Total loans, excluding loans purchased from GNMA mortgage pools		4,011		38		4,691		61
Loans purchased from GNMA mortgage pools		169		25		73		10
Total loans		4,180		$63		4,764		$  71

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Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Summary of Investments in Community Development and Tax-advantaged VIEs

The following table provides a summary of investments in community development and tax-advantaged VIEs that the Company has not consolidated:

(Dollars in Millions)	June 30, 2022		December 31, 2021
Investment carrying amount	$	4,999	$	4,484
Unfunded capital and other commitments		2,210		1,890
Maximum exposure to loss		9,872		9,899

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Mortgage Servicing Rights (Tables)

6 Months Ended

Jun. 30, 2022

Text Block [Abstract]

Changes in Fair Value of Capitalized MSRs

Changes in fair value of capitalized MSRs are summarized as follows:

	Three Months Ended June 30						Six Months Ended June 30
(Dollars in Millions)	2022			2021			2022			2021
Balance at beginning of period	$	3,432		$	2,787		$	2,953		$	2,210
Rights purchased		3			11			6			27
Rights capitalized		102			293			339			612
Rights sold (a)		—			1			1			1
Changes in fair value of MSRs
Due to fluctuations in market interest rates (b)		289			(232	)		657			254
Due to revised assumptions or models (c)		6			(37	)		(21	)		(139	)
Other changes in fair value (d)		(125	)		(110	)		(228	)		(252	)
Balance at end of period	$	3,707		$	2,713		$	3,707		$	2,713

(a) MSRs sold include those having a negative fair value, resulting from the loans being severely delinquent.

(b) Includes changes in MSR value associated with changes in market interest rates, including estimated prepayment rates and anticipated earnings on escrow deposits.

(c) Includes changes in MSR value not caused by changes in market interest rates, such as changes in assumed cost to service, ancillary income and option adjusted spread, as well as the impact of any model changes.

(d) Primarily the change in MSR value from passage of time and cash flows realized (decay), but also includes the impact of changes to expected cash flows not associated with changes in market interest rates, such as the impact of delinquencies.

Sensitivity to Changes in Interest Rates of the Fair Value of MSR Portfolio and Related Derivative Instruments

The estimated sensitivity to changes in interest rates of the fair value of the MSR portfolio and the related derivative instruments was as follows:

	June 30, 2022												December 31, 2021
(Dollars in Millions)	Down 100 bps		Down 50 bps		Down 25 bps		Up 25 bps		Up 50 bps		Up 100 bps		Down 100 bps		Down 50 bps		Down 25 bps		Up 25 bps		Up 50 bps		Up 100 bps
MSR portfolio	$	(380)	$	(172)	$	(81)	$	71	$	133	$	231	$	(636)	$	(324)	$	(160)	$	150	$	287	$	511
Derivative instrument hedges		371		170		81		(73)		(141)		(261)		614		309		152		(142)		(278)		(536)
Net sensitivity	$	(9)	$	(2)	$	—	$	(2)	$	(8)	$	(30)	$	(22)	$	(15)	$	(8)	$	8	$	9	$	(25)

MSRs and Related Characteristics by Portfolio

A summary of the Company’s MSRs and related characteristics by portfolio was as follows:

	June 30, 2022												December 31, 2021
(Dollars in Millions)	HFA			Government			Conventional (d)			Total			HFA			Government			Conventional (d)			Total
Servicing portfolio (a)	$	41,701		$	21,358		$	159,657		$	222,716		$	40,652		$	21,919		$	156,382		$	218,953
Fair value	$	697		$	403		$	2,607		$	3,707		$	527		$	308		$	2,118		$	2,953
Value (bps) (b)		167			189			163			166			130			141			135			135
Weighted-average servicing fees (bps)		36			41			30			32			36			41			30			32
Multiple (value/servicing fees)		4.65			4.59			5.41			5.15			3.63			3.43			4.50			4.18
Weighted-average note rate		4.02	%		3.67	%		3.40	%		3.54	%		4.07	%		3.70	%		3.41	%		3.56	%
Weighted-average age (in years)		3.9			6.0			3.5			3.8			3.8			5.9			3.3			3.7
Weighted-average expected prepayment (constant prepayment rate)		7.5	%		8.5	%		6.5	%		6.9	%		11.5	%		13.2	%		9.6	%		10.3	%
Weighted-average expected life (in years)		8.6			7.4			8.2			8.2			6.5			5.6			6.9			6.7
Weighted-average option adjusted spread (c)		7.2	%		6.9	%		5.9	%		6.2	%		7.3	%		7.3	%		6.3	%		6.6	%

(a) Represents principal balance of mortgages having corresponding MSR asset.

(b) Calculated as fair value divided by the servicing portfolio.

(c) Option adjusted spread is the incremental spread added to the risk-free rate to reflect optionality and other risk inherent in the MSRs.

(d) Represents loans sold primarily to GSEs.

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Preferred Stock (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Number of Shares Issued and Outstanding and Carrying Amount of Preferred Stock

The number of shares issued and outstanding and the carrying amount of each outstanding series of the Company’s preferred stock were as follows:

	June 30, 2022								December 31, 2021
(Dollars in Millions)	Shares Issued and Outstanding		Liquidation Preference		Discount		Carrying Amount		Shares Issued and Outstanding		Liquidation Preference		Discount		Carrying Amount
Series A		12,510	$	1,251	$	145	$	1,106		12,510	$	1,251	$	145	$	1,106
Series B		40,000		1,000		—		1,000		40,000		1,000		—		1,000
Series J		40,000		1,000		7		993		40,000		1,000		7		993
Series K		23,000		575		10		565		23,000		575		10		565
Series L		20,000		500		14		486		20,000		500		14		486
Series M		30,000		750		21		729		30,000		750		21		729
Series N		60,000		1,500		8		1,492		60,000		1,500		8		1,492
Series O		18,000		450		13		437		—		—		—		—
Total preferred stock (a)		243,510	$	7,026	$	218	$	6,808		225,510	$	6,576	$	205	$	6,371

(a) The par value of all shares issued and outstanding at June 30, 2022 and December 31, 2021, was $1.00 per share.

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Reconciliation of Transactions Affecting Accumulated Other Comprehensive Income (Loss) Included in Shareholders' Equity

The reconciliation of the transactions affecting accumulated other comprehensive income (loss) included in shareholders’ equity is as follows:

Three Months Ended June 30 (Dollars in Millions)	Unrealized Gains (Losses) on Investment Securities Available-For- Sale			Unrealized Gains (Losses) on Investment Securities Transferred From Available- For-Sale to Held-To-Maturity			Unrealized Gains (Losses) on Derivative Hedges			Unrealized Gains (Losses) on Retirement Plans			Foreign Currency Translation			Total
2022
Balance at beginning of period	$	(4,518	)	$	(904	)	$	(77	)	$	(1,402	)	$	(37	)	$	(6,938	)
Changes in unrealized gains (losses)		(4,761	)		—			98			—			—			(4,663	)
Transfer of securities from available-for-sale to held-to-maturity		1,381			(1,381	)		—			—			—			—
Foreign currency translation adjustment (a)		—			—			—			—			(3	)		(3	)
Reclassification to earnings of realized (gains) losses		(19	)		61			10			32			—			84
Applicable income taxes		859			334			(27	)		(8	)		1			1,159
Balance at end of period	$	(7,058	)	$	(1,890	)	$	4		$	(1,378	)	$	(39	)	$	(10,361	)
2021
Balance at beginning of period	$	(125	)	$	—		$	(112	)	$	(1,813	)	$	(45	)	$	(2,095	)
Changes in unrealized gains (losses)		1,195			—			14			—			—			1,209
Foreign currency translation adjustment (a)		—			—			—			—			(1	)		(1	)
Reclassification to earnings of realized (gains) losses		(43	)		—			(8	)		40			—			(11	)
Applicable income taxes		(292	)		—			(1	)		(10	)		(1	)		(304	)
Balance at end of period	$	735		$	—		$	(107	)	$	(1,783	)	$	(47	)	$	(1,202	)

(a) Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges.

Six Months Ended June 30 (Dollars in Millions)	Unrealized Gains (Losses) on Investment Securities Available-For- Sale			Unrealized Gains (Losses) on Investment Securities Transferred From Available- For-Sale to Held-To-Maturity			Unrealized Gains (Losses) on Derivative Hedges			Unrealized Gains (Losses) on Retirement Plans			Foreign Currency Translation			Total
2022
Balance at beginning of period	$	540		$	(935	)	$	(85	)	$	(1,426	)	$	(37	)	$	(1,943	)
Changes in unrealized gains (losses)		(11,515	)		—			98			—			—			(11,417	)
Transfer of securities from available-for-sale to held-to-maturity		1,381			(1,381	)		—			—			—			—
Foreign currency translation adjustment (a)		—			—			—			—			(3	)		(3	)
Reclassification to earnings of realized (gains) losses		(37	)		103			21			64			—			151
Applicable income taxes		2,573			323			(30	)		(16	)		1			2,851
Balance at end of period	$	(7,058	)	$	(1,890	)	$	4		$	(1,378	)	$	(39	)	$	(10,361	)
2021
Balance at beginning of period	$	2,417		$	—		$	(189	)	$	(1,842	)	$	(64	)	$	322
Changes in unrealized gains (losses)		(2,183	)		—			113			—			—			(2,070	)
Foreign currency translation adjustment (a)		—			—			—			—			24			24
Reclassification to earnings of realized (gains) losses		(68	)		—			(4	)		79			—			7
Applicable income taxes		569			—			(27	)		(20	)		(7	)		515
Balance at end of period	$	735		$	—		$	(107	)	$	(1,783	)	$	(47	)	$	(1,202	)

(a) Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges.

Impact to Net Income for Items Reclassified out of Accumulated Other Comprehensive Income and into Earnings

Additional detail about the impact to net income for items reclassified out of accumulated other comprehensive income (loss) and into earnings is as follows:

	Impact to Net Income												Affected Line Item in the Consolidated Statement of Income
	Three Months Ended June 30						Six Months Ended June 30
(Dollars in Millions)	2022			2021			2022			2021
Unrealized gains (losses) on investment securities available-for-sale
Realized gains (losses) on sale of investment securities	$	19		$	43		$	37		$	68		Securities gains (losses), net
		(5	)		(11)			(9)			(17)		Applicable income taxes
		14			32			28			51		Net-of-tax
Unrealized gains (losses) on investment securities transferred from available-for-sale to held-to-maturity
Amortization of unrealized gains		(61	)		—			(103	)		—		Interest income
		16			—			26			—		Applicable income taxes
		(45	)		—			(77)			—		Net-of-tax
Unrealized gains (losses) on derivative hedges
Realized gains (losses) on derivative hedges		(10	)		8			(21	)		4		Interest expense
		2			(2)			5			(1)		Applicable income taxes
		(8)			6			(16)			3		Net-of-tax
Unrealized gains (losses) on retirement plans
Actuarial gains (losses) and prior service cost (credit) amortization		(32	)		(40	)		(64	)		(79	)	Other noninterest expense
		8			10			16			20		Applicable income taxes
		(24)			(30)			(48)			(59)		Net-of-tax
Total impact to net income	$	(63	)	$	8		$	(113	)	$	(5)

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Components of Earnings Per Share

The components of earnings per share were:

	Three Months Ended June 30						Six Months Ended June 30
(Dollars and Shares in Millions, Except Per Share Data)	2022			2021			2022			2021
Net income attributable to U.S. Bancorp	$	1,531		$	1,982		$	3,088		$	4,262
Preferred dividends		(59	)		(58	)		(143	)		(148	)
Impact of preferred stock call (a)		—			—			—			(5	)
Earnings allocated to participating stock awards		(8	)		(10	)		(15	)		(20	)
Net income applicable to U.S. Bancorp common shareholders	$	1,464		$	1,914		$	2,930		$	4,089
Average common shares outstanding		1,486			1,489			1,485			1,495
Net effect of the exercise and assumed purchase of stock awards		1			1			1			2
Average diluted common shares outstanding		1,487			1,490			1,486			1,497
Earnings per common share	$	.99		$	1.29		$	1.97		$	2.73
Diluted earnings per common share	$	.99		$	1.28		$	1.97		$	2.73

(a) Represents stock issuance costs originally recorded in preferred stock upon issuance of the Company’s Series I Preferred Stock that were reclassified to retained earnings on the date the Company announced its intent to redeem the outstanding shares.

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Employee Benefits (Tables)

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Components of Net Periodic Benefit Cost and Other Amounts Recognized in Accumulated Other Comprehensive Income (Loss)

The components of net periodic benefit cost for the Company’s retirement plans were:

	Three Months Ended June 30												Six Months Ended June 30
	Pension Plans						Postretirement Welfare Plan						Pension Plans						Postretirement Welfare Plan
(Dollars in Millions)	2022			2021			2022			2021			2022			2021			2022			2021
Service cost	$	68		$	66		$	—		$	—		$	137		$	132		$	—		$	—
Interest cost		62			55			—			—			123			110			—			—
Expected return on plan assets		(120	)		(113	)		—			—			(239	)		(225	)		—			—
Prior service cost (credit) amortization		—			(1	)		(2	)		(1	)		(1	)		(1	)		(2	)		(2	)
Actuarial loss (gain) amortization		35			43			(1	)		(1	)		70			85			(3	)		(3	)
Net periodic benefit cost (a)	$	45		$	50		$	(3	)	$	(2	)	$	90		$	101		$	(5	)	$	(5	)

(a) Service cost is included in employee benefits expense on the Consolidated Statement of Income. All other components are included in other noninterest expense on the Consolidated Statement of Income.

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The components of income tax expense were:

	Three Months Ended June 30					Six Months Ended June 30
(Dollars in Millions)	2022			2021		2022		2021
Federal
Current	$	221		$	350	$	625	$	703
Deferred		107			76		5		206
Federal income tax		328			426		630		909
State
Current		89			109		178		203
Deferred		(3	)		16		3		46
State income tax		86			125		181		249
Total income tax provision	$	414		$	551	$	811	$	1,158

Reconciliation of Expected Income Tax Expense at Federal Statutory Rate of 21 Percent to Company's Applicable Income Tax Expense

A reconciliation of expected income tax expense at the federal statutory rate of 21 percent to the Company’s applicable income tax expense follows:

	Three Months Ended June 30						Six Months Ended June 30
(Dollars in Millions)	2022			2021			2022			2021
Tax at statutory rate	$	409		$	533		$	820		$	1,140
State income tax, at statutory rates, net of federal tax benefit		84			105			168			219
Tax effect of
Tax credits and benefits, net of related expenses		(46	)		(83	)		(152	)		(176	)
Tax-exempt income		(29	)		(29	)		(57	)		(57	)
Other items		(4	)		25			32			32
Applicable income taxes	$	414		$	551		$	811		$	1,158

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Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Asset and Liability Management Derivative Positions of Company

The following table summarizes the asset and liability management derivative positions of the Company:

	June 30, 2022						December 31, 2021
	Notional Value		Fair Value				Notional Value		Fair Value
(Dollars in Millions)			Assets		Liabilities				Assets		Liabilities
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	17,400	$	—	$	—	$	12,350	$	—	$	—
Pay fixed/receive floating swaps		3,820		—		—		16,650		—		—
Cash flow hedges
Interest rate contracts
Receive fixed/pay floating swaps		8,300		—		—		—		—		—
Net investment hedges
Foreign exchange forward contracts		805		6		1		793		—		4
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		11,040		30		63		9,322		10		16
Sell		9,811		34		31		29,348		25		27
Options
Purchased		7,480		260		—		18,570		256		—
Written		7,208		20		93		9,662		52		231
Receive fixed/pay floating swaps		11,420		—		—		9,653		—		—
Pay fixed/receive floating swaps		12,481		—		—		7,033		—		—
Foreign exchange forward contracts		852		5		2		735		2		6
Equity contracts		186		4		—		209		5		—
Other (a)		2,344		2		81		1,792		—		125
Total	$	93,147	$	361	$	271	$	116,117	$	350	$	409

(a) Includes derivative liability swap agreements related to the sale of a portion of the Company’s Class B common and preferred shares of Visa Inc. The Visa swap agreements had a total notional value and fair value of $1.8 billion and $79 million at June 30, 2022, respectively, compared to $1.8 billion and $125 million at December 31, 2021, respectively. In addition, includes short-term underwriting purchase and sale commitments with total notional values of $565 million at June 30, 2022, and $8 million at December 31, 2021.

Summary of Customer-Related Derivative Positions of Company

The following table summarizes the customer-related derivative positions of the Company:

	June 30, 2022						December 31, 2021
	Notional Value		Fair Value				Notional Value		Fair Value
(Dollars in Millions)			Assets		Liabilities				Assets		Liabilities
Interest rate contracts
Receive fixed/pay floating swaps	$	204,454	$	458	$	3,125	$	178,701	$	2,007	$	438
Pay fixed/receive floating swaps		193,869		1,308		214		174,176		134		670
Other (a)		19,451		1		3		16,267		1		2
Options
Purchased		90,183		993		5		89,679		194		36
Written		87,585		6		979		85,211		36		176
Futures
Buy		475		—		—		3,607		—		—
Sell		4,928		—		—		3,941		—		—
Foreign exchange rate contracts
Forwards, spots and swaps		95,611		2,222		2,239		89,321		1,145		1,143
Options
Purchased		861		39		—		805		19		—
Written		861		—		39		805		—		19
Credit contracts		9,152		1		6		9,331		1		5
Total	$	707,430	$	5,028	$	6,610	$	651,844	$	3,537	$	2,489

(a) Primarily represents floating rate interest rate swaps that pay based on differentials between specified interest rate indexes.

Summary of Effective Portion of Gains (Losses) Recognized in Other Comprehensive Income (Loss) and Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings

The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax):

	Three Months Ended June 30										Six Months Ended June 30
	Gains (Losses) Recognized in Other Comprehensive Income (Loss)					Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings					Gains (Losses) Recognized in Other Comprehensive Income (Loss)					Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
(Dollars in Millions)	2022		2021			2022			2021		2022		2021			2022			2021
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts	$	73	$	11		$	(8	)	$	6	$	73	$	85		$	(16	)	$	3
Net investment hedges
Foreign exchange forward contracts		27		(8	)		—			—		26		(1	)		—			—
Non-derivative debt instruments		63		(14	)		—			—		83		34			—			—

Note: The Company does not exclude components from effectiveness testing for cash flow and net investment hedges.

Summary of Effect of Fair Value and Cash Flow Hedge Accounting Included in Interest Expense on Consolidated Statement of Income

The table below shows the effect of fair value and cash flow hedge accounting on the Consolidated Statement of Income:

	Three Months Ended June 30												Six Months Ended June 30
	Interest Income						Interest Expense						Interest Income						Interest Expense
(Dollars in Millions)	2022			2021			2022			2021			2022			2021			2022			2021
Total amount of income and expense line items presented in the Consolidated Statement of Income in which the effects of fair value or cash flow hedges are recorded	$	3,825		$	3,382		$	390		$	245		$	7,243		$	6,723		$	635		$	523
Asset and Liability Management Positions
Fair value hedges
Interest rate contract derivatives		(186	)		(30	)		(38	)		18			331			(31	)		34			73
Hedged items		187			29			36			(17	)		(331	)		30			(35	)		(72	)
Cash flow hedges
Interest rate contract derivatives		—			—			10			(8	)		—			—			21			(4	)

Note: The Company does not exclude components from effectiveness testing for fair value and cash flow hedges. The Company reclassified losses of $10 million and $21 million into earnings during the three and six months ended June 30, 2022, respectively, as a result of realized cash flows on discontinued cash flow hedges, compared with $12 million and $27 million during the three and six months ended June 30, 2021, respectively. No amounts were reclassified into earnings on discontinued cash flow hedges because it is probable the original hedged forecasted cash flows will not occur.

Summary of Cumulative Hedging Adjustments and the Carrying Amount of Assets and Liabilities Designated in Fair Value Hedges

The table below shows cumulative hedging adjustments and the carrying amount of assets and liabilities designated in fair value hedges:

	Carrying Amount of the Hedged Assets and Liabilities				Cumulative Hedging Adjustment (a)
At December 31 (Dollars in Millions)	June 30, 2022		December 31, 2021		June 30, 2022			December 31, 2021
Line Item in the Consolidated Balance Sheet
Available-for-sale investment securities	$	3,124	$	16,445	$	(716	)	$	(26	)
Long-term debt		17,724		12,278		378			585

(a) The cumulative hedging adjustment related to discontinued hedging relationships on available-for-sale investment securities and long-term debt was $(365) million and $468 million, respectively, at June 30, 2022, compared with $(6) million and $640 million at December 31, 2021, respectively.

Summary of Gains (Losses) Recognized in Earnings for Other Economic Hedges and Customer-Related Positions

The table below shows the gains (losses) recognized in earnings for other economic hedges and the customer-related positions:

	Location of Gains (Losses) Recognized in Earnings		Three Months Ended June 30						Six Months Ended June 30
(Dollars in Millions)			2022			2021			2022			2021
Asset and Liability Management Positions
Other economic hedges
Interest rate contracts
Futures and forwards		Mortgage banking revenue	$	74		$	(99	)	$	297		$	331
Purchased and written options		Mortgage banking revenue		6			253			(41	)		265
Swaps		Mortgage banking revenue		(247	)		193			(451	)		(197	)
Foreign exchange forward contracts		Other noninterest income		4			(7	)		1			(10	)
Equity contracts		Compensation expense		(1	)		1			(3	)		5
Other		Other noninterest income		1			1			—			1
Customer-Related Positions
Interest rate contracts
Swaps		Commercial products revenue		30			25			47			52
Purchased and written options		Commercial products revenue		—			4			4			(3	)
Futures		Commercial products revenue		8			—			24			—
Foreign exchange rate contracts
Forwards, spots and swaps		Commercial products revenue		20			27			35			46
Purchased and written options		Commercial products revenue		1			—			1			—
Credit contracts		Commercial products revenue		17			(4	)		22			(2	)

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Netting Arrangements for Certain Financial Instruments and Securities Financing Activities (Tables)

6 Months Ended

Jun. 30, 2022

Text Block [Abstract]

Summary of Maturities by Category of Collateral Pledged for Repurchase Agreements and Securities Loaned Transactions

The following table summarizes the maturities by category of collateral pledged for repurchase agreements and securities loaned transactions:

(Dollars in Millions)	Overnight and Continuous		Less Than 30 Days		30-89 Days		Greater Than 90 Days		Total
June 30, 2022
Repurchase agreements
U.S. Treasury and agencies	$	429	$	–	$	–	$	–	$	429
Residential agency mortgage-backed securities		969		–		–		–		969
Corporate debt securities		597		–		–		–		597
Total repurchase agreements		1,995		–		–		–		1,995
Securities loaned
Corporate debt securities		225		–		–		–		225
Total securities loaned		225		–		–		–		225
Gross amount of recognized liabilities	$	2,220	$	–	$	–	$	–	$	2,220
December 31, 2021
Repurchase agreements
U.S. Treasury and agencies	$	378	$	–	$	–	$	–	$	378
Residential agency mortgage-backed securities		551		–		–		–		551
Corporate debt securities		646		–		–		–		646
Total repurchase agreements		1,575		–		–		–		1,575
Securities loaned
Corporate debt securities		169		–		–		–		169
Total securities loaned		169		–		–		–		169
Gross amount of recognized liabilities	$	1,744	$	–	$	–	$	–	$	1,744

Information on Company's Accounting Netting Adjustments and Items Not Offset in Consolidated Balance Sheet Assets But Available for Offset in Event of Default

The following tables provide information on the Company’s netting adjustments, and items not offset on the Consolidated Balance Sheet but available for offset in the event of default:

(Dollars in Millions)	Gross Recognized Assets		Gross Amounts Offset on the Consolidated Balance Sheet (a)			Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet						Net Amount
								Financial Instruments (b)			Collateral Received (c)
June 30, 2022
Derivative assets (d)	$	5,359	$	(3,503	)	$	1,856	$	(175	)	$	(66	)	$	1,615
Reverse repurchase agreements		513		–			513		(386	)		(127	)		–
Securities borrowed		1,657		–			1,657		–			(1,609	)		48
Total	$	7,529	$	(3,503	)	$	4,026	$	(561	)	$	(1,802	)	$	1,663
December 31, 2021
Derivative assets (d)	$	3,830	$	(1,609	)	$	2,221	$	(142	)	$	(106	)	$	1,973
Reverse repurchase agreements		359		–			359		(249	)		(110	)		–
Securities borrowed		1,868		–			1,868		–			(1,818	)		50
Total	$	6,057	$	(1,609	)	$	4,448	$	(391	)	$	(2,034	)	$	2,023

(a) Includes $2.0 billion and $528 million of cash collateral related payables that were netted against derivative assets at June 30, 2022 and December 31, 2021, respectively.

(b) For derivative assets this includes any derivative liability fair values that could be offset in the event of counterparty default; for reverse repurchase agreements this includes any repurchase agreement payables that could be offset in the event of counterparty default; for securities borrowed this includes any securities loaned payables that could be offset in the event of counterparty default.

(c) Includes the fair value of securities received by the Company from the counterparty. These securities are not included on the Consolidated Balance Sheet unless the counterparty defaults.

(d) Excludes $30 million and $57 million at June 30, 2022 and December 31, 2021, respectively, of derivative assets not subject to netting arrangements.

Information on Company's Accounting Netting Adjustments and Items Not Offset in Consolidated Balance Sheet Liabilities But Available for Offset in Event of Default

(Dollars in Millions)	Gross Recognized Liabilities		Gross Amounts Offset on the Consolidated Balance Sheet (a)			Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet
								Financial Instruments (b)			Collateral Pledged (c)			Net Amount
June 30, 2022
Derivative liabilities (d)	$	6,771	$	(2,639	)	$	4,132	$	(175	)	$	–		$	3,957
Repurchase agreements		1,995		–			1,995		(386	)		(1,609	)		–
Securities loaned		225		–			225		–			(223	)		2
Total	$	8,991	$	(2,639	)	$	6,352	$	(561	)	$	(1,832	)	$	3,959
December 31, 2021
Derivative liabilities (d)	$	2,761	$	(1,589	)	$	1,172	$	(142	)	$	–		$	1,030
Repurchase agreements		1,575		–			1,575		(249	)		(1,326	)		–
Securities loaned		169		–			169		–			(167	)		2
Total	$	4,505	$	(1,589	)	$	2,916	$	(391	)	$	(1,493	)	$	1,032

(a) Includes $1.2 billion and $508 million of cash collateral related receivables that were netted against derivative liabilities at June 30, 2022 and December 31, 2021, respectively.

(b) For derivative liabilities this includes any derivative asset fair values that could be offset in the event of counterparty default; for repurchase agreements this includes any reverse repurchase agreement receivables that could be offset in the event of counterparty default; for securities loaned this includes any securities borrowed receivables that could be offset in the event of counterparty default.

(c) Includes the fair value of securities pledged by the Company to the counterparty. These securities are included on the Consolidated Balance Sheet unless the Company defaults.    

(d) Excludes $110 million and $137 million at June 30, 2022 and December 31, 2021, respectively, of derivative liabilities not subject to netting arrangements.

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Fair Values of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Valuation Assumption Ranges for MSRs

The following table shows the significant valuation assumption ranges for MSRs at June 30, 2022:

	Minimum			Maximum			Weighted- Average (a)
Expected prepayment		5	%		10	%		7	%
Option adjusted spread		5			11			6

(a) Determined based on the relative fair value of the related mortgage loans serviced.

Valuation Assumption Ranges for Derivative Commitments

The following table shows the significant valuation assumption ranges for the Company’s derivative commitments to purchase and originate mortgage loans at June 30, 2022:

	Minimum			Maximum			Weighted- Average (a)
Expected loan close rate		29	%		100	%		80	%
Inherent MSR value (basis points per loan)		37			219			108

(a) Determined based on the relative fair value of the related mortgage loans.

Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis:

(Dollars in Millions)	Level 1		Level 2		Level 3		Netting			Total
June 30, 2022
Available-for-sale securities
U.S. Treasury and agencies	$	18,539	$	5,228	$	–	$	–		$	23,767
Mortgage-backed securities
Residential agency		–		57,752		–		–			57,752
Commercial agency		–		7,564		–		–			7,564
Obligations of state and political subdivisions		–		9,715		1		–			9,716
Other		–		7		–		–			7
Total available-for-sale		18,539		80,266		1		–			98,806
Mortgage loans held for sale		–		2,773		–		–			2,773
Mortgage servicing rights		–		–		3,707		–			3,707
Derivative assets		–		4,555		834		(3,503	)		1,886
Other assets		187		1,830		–		–			2,017
Total	$	18,726	$	89,424	$	4,542	$	(3,503	)	$	109,189
Derivative liabilities	$	–	$	3,872	$	3,009	$	(2,639	)	$	4,242
Short-term borrowings and other liabilities (a)		190		1,645		–		–			1,835
Total	$	190	$	5,517	$	3,009	$	(2,639	)	$	6,077
December 31, 2021
Available-for-sale securities
U.S. Treasury and agencies	$	30,917	$	5,692	$	–	$	–		$	36,609
Mortgage-backed securities
Residential agency		–		77,079		–		–			77,079
Commercial agency		–		8,485		–		–			8,485
Asset-backed securities		–		59		7		–			66
Obligations of state and political subdivisions		–		10,716		1		–			10,717
Other		–		7		–		–			7
Total available-for-sale		30,917		102,038		8		–			132,963
Mortgage loans held for sale		–		6,623		–		–			6,623
Mortgage servicing rights		–		–		2,953		–			2,953
Derivative assets		8		2,490		1,389		(1,609	)		2,278
Other assets		278		1,921		—		—			2,199
Total	$	31,203	$	113,072	$	4,350	$	(1,609	)	$	147,016
Derivative liabilities	$	—	$	2,308	$	590	$	(1,589	)	$	1,309
Short-term borrowings and other liabilities (a)		209		1,837		—		—			2,046
Total	$	209	$	4,145	$	590	$	(1,589	)	$	3,355

Note: Excluded from the table above are equity investments without readily determinable fair values. The Company has elected to carry these investments at historical cost, adjusted for impairment and any changes resulting from observable price changes for identical or similar investments of the issuer. The aggregate carrying amount of these equity investments was $80 million and $79 million at June 30, 2022 and December 31, 2021, respectively. The Company has not recorded impairments or adjustments for observable price changes on these equity investments during the first six months of 2022 and 2021, or on a cumulative basis.

(a) Primarily represents the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.

Changes in Fair Value for All Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended June 30:

(Dollars in Millions)	Beginning of Period Balance			Net Gains (Losses) Included in Net Income			Net Gains (Losses) Included in Other Comprehensive Income (Loss)		Purchases		Sales			Issuances			Settlements			End of Period Balance			Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period
2022
Available-for-sale securities
Asset-backed securities	$	7		$	(3	)	$	–	$	–	$	(4	)	$	–		$	–		$	–		$	–
Obligations of state and political subdivisions		1			–			–		–		–			–			–			1			–
Total available-for-sale		8			(3	)		–		–		(4	)		–			–			1			–
Mortgage servicing rights		3,432			170	(a)		–		3		–			102	(c)		–			3,707			170	(a)
Net derivative assets and liabilities		(1,011	)		(1,494	) (b)		–		81		–			–			249			(2,175	)		(1,259	) (d)
2021
Available-for-sale securities
Asset-backed securities	$	7		$	–		$	1	$	–	$	–		$	–		$	–		$	8		$	1
Obligations of state and political subdivisions		1			–			–		–		–			–			–			1			–
Total available-for-sale		8			–			1		–		–			–			–			9			1
Mortgage servicing rights		2,787			(379	) (a)		–		11		1			293	(c)		–			2,713			(379	) (a)
Net derivative assets and liabilities		1,156			556	(e)		–		58		(1	)		–			(269	)		1,500			412	(f)

(a) Included in mortgage banking revenue.     

(b) Approximately $(20) million, $(1.5) billion and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.

(c) Represents MSRs capitalized during the period.     

(d) Approximately $(3) million, $(1.3) billion and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.

(e) Approximately $276 million, $279 million and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.

(f) Approximately $100 million, $311 million and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.

The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30:

(Dollars in Millions)	Beginning of Period Balance		Net Gains (Losses) Included in Net Income			Net Gains (Losses) Included in Other Comprehensive Income (Loss)		Purchases		Sales			Issuances			Settlements			End of Period Balance			Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period
2022
Available-for-sale securities
Asset-backed securities	$	7	$	(3	)	$	–	$	–	$	(4	)	$	–		$	–		$	–		$	–
Obligations of state and political subdivisions		1		–			–		–		–			–			–			1			–
Total available-for-sale		8		(3	)		–		–		(4	)		–			–			1			–
Mortgage servicing rights		2,953		408	(a)		–		6		1			339	(c)		–			3,707			408	(a)
Net derivative assets and liabilities		799		(3,361	) (b)		–		92		(1	)		–			296			(2,175	)		(2,739	) (d)
2021
Available-for-sale securities
Asset-backed securities	$	7	$	–		$	1	$	–	$	–		$	–		$	–		$	8		$	1
Obligations of state and political subdivisions		1		–			–		–		–			–			–			1			–
Total available-for-sale		8		–			1		–		–			–			–			9			1
Mortgage servicing rights		2,210		(137	) (a)		–		27		1			612	(c)		–			2,713			(137	) (a)
Net derivative assets and liabilities		2,326		(379	) (e)		–		60		(1	)		–			(506	)		1,500			(496	) (f)

(a) Included in mortgage banking revenue.     

(b) Approximately $(103) million and $(3.3) billion included in mortgage banking revenue and commercial products revenue, respectively.

(c) Represents MSRs capitalized during the period.     

(d) Approximately $(3) million and $(2.7) billion included in mortgage banking revenue and commercial products revenue, respectively.

(e) Approximately $336 million, $(716) million and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.

(f) Approximately $100 million, $(597) million and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.

Adjusted Carrying Values for Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes the balances as of the measurement date of assets measured at fair value on a nonrecurring basis, and still held as of the reporting date:

	June 30, 2022								December 31, 2021
(Dollars in Millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Loans (a)	$	–	$	–	$	69	$	69	$	–	$	–	$	59	$	59
Other assets (b)		–		–		28		28		–		–		77		77

(a) Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off.

(b) Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition.

Losses Recognized Related to Nonrecurring Fair Value Measurements of Individual Assets or Portfolios

The following table summarizes losses recognized related to nonrecurring fair value measurements of individual assets or portfolios:

	Three Months Ended June 30				Six Months Ended June 30
(Dollars in Millions)	2022		2021		2022		2021
Loans (a)	$	22	$	12	$	33	$	43
Other assets (b)		10		5		11		6

(a) Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off.     

(b) Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition.

Differences Between Aggregate Fair Value Carrying Amount of MLHFS for which Fair Value Option has been Elected and Aggregate Unpaid Principal Amount Contractually Obligated to Receive at Maturity

The following table summarizes the differences between the aggregate fair value carrying amount of MLHFS for which the fair value option has been elected and the aggregate unpaid principal amount that the Company is contractually obligated to receive at maturity:    

	June 30, 2022						December 31, 2021
(Dollars in Millions)	Fair Value Carrying Amount		Aggregate Unpaid Principal		Carrying Amount Over (Under) Unpaid Principal		Fair Value Carrying Amount		Aggregate Unpaid Principal		Carrying Amount Over (Under) Unpaid Principal
Total loans	$	2,773	$	2,753	$	20	$	6,623	$	6,453	$	170
Nonaccrual loans		1		1		–		1		1		–
Loans 90 days or more past due		1		1		–		2		2		–

Estimated Fair Values of Financial Instruments

The estimated fair values of the Company’s financial instruments are shown in the table below:

	June 30, 2022										December 31, 2021
	Carrying Amount		Fair Value								Carrying Amount		Fair Value
(Dollars in Millions)			Level 1		Level 2		Level 3		Total				Level 1		Level 2		Level 3		Total
Financial Assets
Cash and due from banks	$	39,124	$	39,124	$	–	$	–	$	39,124	$	28,905	$	28,905	$	–	$	–	$	28,905
Federal funds sold and securities purchased under resale agreements		520		–		520		–		520		359		–		359		–		359
Investment securities held-to-maturity		61,503		1,337		54,320		–		55,657		41,858		–		41,812		–		41,812
Loans held for sale (a)		1,170		–		–		1,170		1,170		1,152		–		–		1,152		1,152
Loans		326,537		–		–		321,095		321,095		306,304		–		–		312,724		312,724
Other (b)		2,391		–		1,679		712		2,391		1,521		–		630		891		1,521
Financial Liabilities
Time deposits		30,622		–		30,039		–		30,039		22,665		–		22,644		–		22,644
Short-term borrowings (c)		23,128		–		22,789		–		22,789		9,750		–		9,646		–		9,646
Long-term debt		29,408		–		27,901		–		27,901		32,125		–		32,547		–		32,547
Other (d)		3,896		–		1,135		2,761		3,896		3,862		–		1,170		2,692		3,862

(a) Excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected.     

(b) Includes investments in Federal Reserve Bank and Federal Home Loan Bank stock and tax-advantaged investments.    

(c) Excludes the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.

(d) Includes operating lease liabilities and liabilities related to tax-advantaged investments.    

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Guarantees and Contingent Liabilities (Tables)

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Summary of Other Guarantees and Contingent Liabilities

The following table is a summary of other guarantees and contingent liabilities of the Company at June 30, 2022:

(Dollars in Millions)	Collateral Held		Carrying Amount		Maximum Potential Future Payments
Standby letters of credit	$	—	$	55	$	9,844
Third party borrowing arrangements		—		—		7
Securities lending indemnifications		7,822		—		7,461
Asset sales		—		85		7,629	(a)
Merchant processing		1,415		118		141,453
Tender option bond program guarantee		1,521		—		1,489
Other		—		21		1,343

(a) The maximum potential future payments do not include loan sales where the Company provides standard representation and warranties to the buyer against losses related to loan underwriting documentation defects that may have existed at the time of sale that generally are identified after the occurrence of a triggering event such as delinquency. For these types of loan sales, the maximum potential future payments is generally the unpaid principal balance of loans sold measured at the end of the current reporting period. Actual losses will be significantly less than the maximum exposure, as only a fraction of loans sold will have a representation and warranty breach, and any losses on repurchase would generally be mitigated by any collateral held against the loans.

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Business Segments (Tables)

6 Months Ended

Jun. 30, 2022

Text Block [Abstract]

Business Segments Reporting Information Details

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 2022, certain organization and methodology changes were made and, accordingly, 2021 results were restated and presented on a comparable basis.

Business segment results for the three months ended June 30 were as follows:

	Corporate and Commercial Banking							Consumer and Business Banking						Wealth Management and Investment Services
(Dollars in Millions)	2022			2021				2022			2021			2022			2021
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	784		$	726			$	1,617		$	1,534		$	352		$	246
Noninterest income		272			265				395			634			652			549
Total net revenue		1,056			991				2,012			2,168			1,004			795
Nointerest expense		453			433				1,419			1,375			581			521
Income (loss) before provision and income taxes		603			558				593			793			423			274
Provision for credit losses		100			—				(75	)		(68	)		(4	)		(4	)
Income (loss) before income taxes		503			558				668			861			427			278
Income taxes and taxable-equivalent adjustment		126			140				167			215			107			70
Net income (loss)		377			418				501			646			320			208
Net (income) loss attributable to noncontrolling interests		—			—				—			—			—			—
Net income (loss) attributable to U.S. Bancorp	$	377		$	418			$	501		$	646		$	320		$	208
Average Balance Sheet
Loans	$	123,210		$	102,275			$	141,135		$	140,826		$	22,320		$	17,442
Other earning assets		4,161			4,409				2,579			8,018			251			237
Goodwill		1,912			1,647				3,244			3,476			1,718			1,618
Other intangible assets		4			5				3,634			2,828			300			84
Assets		137,773			114,186				156,132			161,695			25,786			20,470
Noninterest-bearing deposits		58,266			60,696				31,642			33,702			25,019			23,288
Interest-bearing deposits		93,678			70,019				168,486			158,164			71,759			73,347
Total deposits		151,944			130,715				200,128			191,866			96,778			96,635
Total U.S. Bancorp shareholders’ equity		13,989			13,816				12,366			12,337			3,618			3,089
	Payment Services							Treasury and Corporate Support						Consolidated Company
(Dollars in Millions)	2022			2021				2022			2021			2022			2021
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	619		$	595			$	92		$	63		$	3,464		$	3,164
Noninterest income		994	(a)		913	(a	)		235			258			2,548	(b)		2,619 (b)
Total net revenue		1,613			1,508				327			321			6,012 (c)			5,783 (c)
Noninterest expense		871			829				400			229			3,724			3,387
Income (loss) before provision and income taxes		742			679				(73	)		92			2,288			2,396
Provision for credit losses		221			91				69			(189	)		311			(170	)
Income (loss) before income taxes		521			588				(142	)		281			1,977			2,566
Income taxes and taxable-equivalent adjustment		130			147				(87	)		6			443			578
Net income (loss)		391			441				(55	)		275			1,534			1,988
Net (income) loss attributable to noncontrolling interests		—			—				(3	)		(6	)		(3	)		(6	)
Net income (loss) attributable to U.S. Bancorp	$	391		$	441			$	(58	)	$	269		$	1,531		$	1,982
Average Balance Sheet
Loans	$	33,854		$	30,030			$	3,668		$	3,711		$	324,187		$	294,284
Other earning assets		1,023			5				204,560			193,798			212,574			206,467
Goodwill		3,318			3,176				—			—			10,192			9,917
Other intangible assets		438			518				—			—			4,376			3,435
Assets		41,054			35,618				219,166			219,396			579,911			551,365
Noninterest-bearing deposits		3,396			5,030				2,504			2,581			120,827			125,297
Interest-bearing deposits		167			141				1,599			2,242			335,689			303,913
Total deposits		3,563			5,171				4,103			4,823			456,516			429,210
Total U.S. Bancorp shareholders’ equity		8,115			7,413				11,078			16,307			49,166			52,962

(a) Presented net of related rewards and rebate costs and certain partner payments of $772 million and $633 million for the three months ended June 30, 2022 and 2021, respectively.

(b) Includes revenue generated from certain contracts with customers of $2.0 billion and $1.9 billion for the three months ended June 30, 2022 and 2021, respectively.

(c) The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Under these arrangments, the Company recorded $188 million and $238 million of revenue for the three months ended June 30, 2022 and 2021, 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:

	Corporate and Commercial Banking							Consumer and Business Banking						Wealth Management and Investment Services
(Dollars in Millions)	2022		2021					2022			2021			2022			2021
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	1,523	$	1,448				$	3,129		$	3,035		$	627		$	514
Noninterest income		517		533					856			1,203			1,248			1,080
Total net revenue		2,040		1,981					3,985			4,238			1,875			1,594
Nointerest expense		878		853					2,839			2,731			1,174			1,020
Income (loss) before provision and income taxes		1,162		1,128					1,146			1,507			701			574
Provision for credit losses		104		(46	)				(28	)		(108	)		4			1
Income (loss) before income taxes		1,058		1,174					1,174			1,615			697			573
Income taxes and taxable-equivalent adjustment		265		294					294			404			175			144
Net income (loss)		793		880					880			1,211			522			429
Net (income) loss attributable to noncontrolling interests		—		—					—			—			—			—
Net income (loss) attributable to U.S. Bancorp	$	793	$	880				$	880		$	1,211		$	522		$	429
Average Balance Sheet
Loans	$	119,557	$	102,201				$	140,984		$	141,170		$	21,521		$	17,147
Other earning assets		4,416		4,364					3,475			9,092			255			258
Goodwill		1,912		1,647					3,252			3,476			1,739			1,618
Other intangible assets		4		5					3,406			2,661			283			63
Assets		132,856		114,229					156,770			162,803			25,124			20,297
Noninterest-bearing deposits		60,298		58,524					31,807			33,244			26,204			22,339
Interest-bearing deposits		90,336		70,943					167,279			154,450			71,024			78,489
Total deposits		150,634		129,467					199,086			187,694			97,228			100,828
Total U.S. Bancorp shareholders’ equity		13,859		14,092					12,311			12,407			3,607			3,062
	Payment Services							Treasury and Corporate Support						Consolidated Company
(Dollars in Millions)	2022		2021					2022			2021			2022			2021
Condensed Income Statement
Net interest income (taxable-equivalent basis)	$	1,241	$	1,224				$	144		$	32		$	6,664		$	6,253
Noninterest income		1,852 (a)		1,698		(a	)		471			486			4,944 (b)			5,000 (b)
Total net revenue		3,093		2,922					615			518			11,608 (c)			11,253 (c)
Noninterest expense		1,726		1,627					609			535			7,226			6,766
Income (loss) before provision and income taxes		1,367		1,295					6			(17	)		4,382			4,487
Provision for credit losses		351		50					(8	)		(894	)		423			(997	)
Income (loss) before income taxes		1,016		1,245					14			877			3,959			5,484
Income taxes and taxable-equivalent adjustment		254		311					(121	)		58			867			1,211
Net income (loss)		762		934					135			819			3,092			4,273
Net (income) loss attributable to noncontrolling interests		—		—					(4	)		(11	)		(4	)		(11	)
Net income (loss) attributable to U.S. Bancorp	$	762	$	934				$	131		$	808		$	3,088		$	4,262
Average Balance Sheet
Loans	$	32,802	$	29,831				$	3,744		$	3,789		$	318,608		$	294,138
Other earning assets		1,023		5					205,541			191,382			214,710			205,101
Goodwill		3,322		3,175					—			—			10,225			9,916
Other intangible assets		450		530					—			—			4,143			3,259
Assets		39,803		35,356					224,110			217,372			578,663			550,057
Noninterest-bearing deposits		3,534		5,146					2,532			2,591			124,375			121,844
Interest-bearing deposits		164		137					2,174			1,932			330,977			305,951
Total deposits		3,698		5,283					4,706			4,523			455,352			427,795
Total U.S. Bancorp shareholders’ equity		8,067		7,535					13,460			15,750			51,304			52,846

(a) Presented net of related rewards and rebate costs and certain partner payments of $1.4 billion and $1.2 billion for the six months ended June 30, 2022 and 2021, respectively.

(b) Includes revenue generated from certain contracts with customers of $3.9 billion and $3.6 billion for the six months ended June 30, 2022 and 2021, respectively.

(c) The Company, as a lessor, originates retail and commercial leases either directly to the consumer or indirectly through dealer networks. Under these arrangments, the Company recorded $392 million and $466 million of revenue for the six months ended June 30, 2022 and 2021, respectively, primarily consisting of interest income on sales-type and direct financing leases.

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Business Combinations - Additional Information (Detail) - MUFG Union Bank [Member] - Forecast [Member] $ in Billions	6 Months Ended
	Dec. 31, 2022 USD ($) Branches shares
Business Acquisition [Line Items]
Business combination, Consideration transferred	$ 8.0
Payments to acquire businesses, gross	5.5
Business combination, Recognized identifiable assets acquired and liabilities assumed, Assets	105.0
Business combination, Recognized identifiable assets acquired and liabilities assumed, Financial liabilities	58.0
Business combination, Recognized identifiable assets acquired and liabilities assumed, Deposits	$ 90.0
Number of branches acquired | Branches	300
Common Stock [Member]
Business Acquisition [Line Items]
Business acquisition, Equity interest issued or issuable, Number of shares | shares	44,000,000

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Investment Securities - Available-for-Sale and Held-to-Maturity (Detail) - USD ($) $ in Millions		Jun. 30, 2022		Dec. 31, 2021
Debt Securities Available For Sale And Held To Maturity [Line Items]
Held-to-maturity securities, Amortized Cost		$ 61,503	[1]	$ 41,858
Held-to-maturity securities, Unrealized Gains		2		2
Held-to-maturity securities, Unrealized Losses		(5,848)		(48)
Held-to-maturity securities, Fair Value		55,657	[1]	41,812
Available-for-sale Securities, Amortized Cost		108,255		132,241
Available-for-sale securities, Unrealized Gains		34		1,534
Available-for-sale securities, Unrealized Losses		(9,483)		(812)
Available-for-sale securities, Fair Value	[2]	98,806		132,963
U.S. Treasury and Agencies [Member]
Debt Securities Available For Sale And Held To Maturity [Line Items]
Held-to-maturity securities, Amortized Cost		1,343
Held-to-maturity securities, Unrealized Losses		(6)
Held-to-maturity securities, Fair Value		1,337
Available-for-sale Securities, Amortized Cost		25,779		36,648
Available-for-sale securities, Unrealized Gains				205
Available-for-sale securities, Unrealized Losses		(2,012)		(244)
Available-for-sale securities, Fair Value		23,767		36,609
Residential Mortgage-Backed Securities [Member] | Agency [Member]
Debt Securities Available For Sale And Held To Maturity [Line Items]
Held-to-maturity securities, Amortized Cost		60,160		41,858
Held-to-maturity securities, Unrealized Gains		2		2
Held-to-maturity securities, Unrealized Losses		(5,842)		(48)
Held-to-maturity securities, Fair Value		54,320		41,812
Available-for-sale Securities, Amortized Cost		62,788		76,761
Available-for-sale securities, Unrealized Gains		23		665
Available-for-sale securities, Unrealized Losses		(5,059)		(347)
Available-for-sale securities, Fair Value		57,752		77,079
Commercial [Member] | Agency [Member]
Debt Securities Available For Sale And Held To Maturity [Line Items]
Available-for-sale Securities, Amortized Cost		8,756		8,633
Available-for-sale securities, Unrealized Gains				53
Available-for-sale securities, Unrealized Losses		(1,192)		(201)
Available-for-sale securities, Fair Value		7,564		8,485
Asset-Backed Securities [Member]
Debt Securities Available For Sale And Held To Maturity [Line Items]
Available-for-sale Securities, Amortized Cost				62
Available-for-sale securities, Unrealized Gains				4
Available-for-sale securities, Fair Value				66
Obligations of State and Political Subdivisions [Member]
Debt Securities Available For Sale And Held To Maturity [Line Items]
Available-for-sale Securities, Amortized Cost		10,925		10,130
Available-for-sale securities, Unrealized Gains		11		607
Available-for-sale securities, Unrealized Losses		(1,220)		(20)
Available-for-sale securities, Fair Value		9,716		10,717
Other [Member]
Debt Securities Available For Sale And Held To Maturity [Line Items]
Available-for-sale Securities, Amortized Cost		7		7
Available-for-sale securities, Fair Value		$ 7		$ 7

[1] The weighted-average maturity of total held-to-maturity investment securities was 7.4 years at December 31, 2021, with a corresponding weighted-average yield of 1.45 percent. The weighted-average maturity of total available-for-sale investment securities was 5.5 years at December 31, 2021, with a corresponding weighted-average yield of 1.73 percent.

[2] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.

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Investment Securities - Amount of Interest Income from Taxable and Non-Taxable Investment Securities (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Interest Income, Securities, Operating, by Taxable Status [Abstract]
Taxable	$ 732	$ 554	$ 1,378	$ 1,009
Non-taxable	74	64	145	126
Total interest income from investment securities	$ 806	$ 618	$ 1,523	$ 1,135

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Investment Securities - Amount of Gross Gains and Losses Realized through Sales of Available-for-Sale Investment Securities (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Debt Securities, Available-for-sale, Realized Gain (Loss) [Abstract]
Realized gains	$ 144	$ 43	$ 386	$ 68
Realized losses	(125)		(349)
Net realized gains	19	43	37	68
Income tax on net realized gains	$ 5	$ 11	$ 9	$ 17

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Investment Securities - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Fair value of securities pledged	$ 16,900	$ 30,700
Fair value of securities pledged as collateral where counterparty has right to repledge or resell	987	$ 557
Transfer of amortized cost of available for sale debt securities to held to maturity securities	17,100
Transfer of available for sale debt securities to held to maturity securities	15,700
Debt securities, Held to maturity, Allowance for credit loss	$ 0

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Investment Securities - Gross Unrealized Losses and Fair Value of Company's Investment Securities (Detail) $ in Millions	Jun. 30, 2022 USD ($)
Continuous Gross Unrealized Losses And Fair Value [Abstract]
Fair Value Less Than 12 Months	$ 83,697
Unrealized Losses Less Than 12 Months	(7,576)
Fair Value 12 Months or Greater	11,978
Unrealized Losses 12 Months or Greater	(1,907)
Fair Value Total	95,675
Unrealized Losses Total	(9,483)
U.S. Treasury and Agencies [Member]
Continuous Gross Unrealized Losses And Fair Value [Abstract]
Fair Value Less Than 12 Months	19,590
Unrealized Losses Less Than 12 Months	(1,581)
Fair Value 12 Months or Greater	3,511
Unrealized Losses 12 Months or Greater	(431)
Fair Value Total	23,101
Unrealized Losses Total	(2,012)
Residential Mortgage-Backed Securities [Member]
Continuous Gross Unrealized Losses And Fair Value [Abstract]
Fair Value Less Than 12 Months	50,819
Unrealized Losses Less Than 12 Months	(4,281)
Fair Value 12 Months or Greater	5,360
Unrealized Losses 12 Months or Greater	(778)
Fair Value Total	56,179
Unrealized Losses Total	(5,059)
Commercial Mortgage Backed Securities [Member]
Continuous Gross Unrealized Losses And Fair Value [Abstract]
Fair Value Less Than 12 Months	4,852
Unrealized Losses Less Than 12 Months	(657)
Fair Value 12 Months or Greater	2,711
Unrealized Losses 12 Months or Greater	(535)
Fair Value Total	7,563
Unrealized Losses Total	(1,192)
Obligations of State and Political Subdivisions [Member]
Continuous Gross Unrealized Losses And Fair Value [Abstract]
Fair Value Less Than 12 Months	8,430
Unrealized Losses Less Than 12 Months	(1,057)
Fair Value 12 Months or Greater	396
Unrealized Losses 12 Months or Greater	(163)
Fair Value Total	8,826
Unrealized Losses Total	(1,220)
Other [Member]
Continuous Gross Unrealized Losses And Fair Value [Abstract]
Fair Value Less Than 12 Months	6
Fair Value Total	$ 6

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Investment Securities - Amortized Cost, Fair Value and Yield by Maturity Date (Detail) - USD ($) $ in Millions		6 Months Ended		12 Months Ended
		Jun. 30, 2022		Dec. 31, 2021
Contractual Maturities of Investment Securities [Line Items]
Available-for-sale securities, Amortized Cost		$ 108,255		$ 132,241
Available-for-sale securities, total, fair value	[1]	$ 98,806		$ 132,963
Available-for-sale securities, total, weighted-average maturity in years		8 years 2 months 12 days	[2]	5 years 6 months
Available-for-sale securities, total, weighted-average yield		2.13%	[2],[3]	1.73%
Held-to-maturity securities, Amortized Cost		$ 61,503	[2]	$ 41,858
Held-to-maturity securities, total, fair value		$ 55,657	[2]	$ 41,812
Held-to-maturity securities, total, weighted-average maturity in years	[2]	9 years 9 months 18 days
Held-to-maturity securities, total, weighted-average yield		1.94%	[2]	1.45%
U.S. Treasury and Agencies [Member]
Contractual Maturities of Investment Securities [Line Items]
Available-for-sale securities, maturing in one year or less, amortized cost		$ 1,826
Available-for-sale securities, maturing after one year through five years, amortized cost		3,525
Available-for-sale securities, maturing after five years through ten years, amortized cost		17,771
Available-for-sale securities, maturing after ten years, amortized cost		2,657
Available-for-sale securities, Amortized Cost		25,779		$ 36,648
Available-for-sale securities, maturing in one year or less, fair value		1,824
Available-for-sale securities, maturing after one year through five years, fair value		3,296
Available-for-sale securities, maturing after five years through ten years, fair value		16,479
Available-for-sale securities, maturing after ten years, fair value		2,168
Available-for-sale securities, total, fair value		$ 23,767		36,609
Available-for-sale securities, maturing in one year or less, weighted-average maturity in years		3 months 18 days
Available-for-sale securities, maturing after one year through five years, weighted-average maturity in years		4 years 4 months 24 days
Available-for-sale securities, maturing after five years through ten years, weighted-average maturity in years		7 years 4 months 24 days
Available-for-sale securities, maturing after ten years, weighted- average maturity in years		11 years 9 months 18 days
Available-for-sale securities, total, weighted-average maturity in years		6 years 10 months 24 days
Available-for-sale securities, maturing in one year or less, weighted-average yield	[3]	1.96%
Available-for-sale securities, maturing after one year through five years, weighted-average yield	[3]	1.50%
Available-for-sale securities, maturing after five years through ten years, weighted-average yield	[3]	2.04%
Available-for-sale securities, maturing after ten years, weighted-average yield	[3]	1.99%
Available-for-sale securities, total, weighted-average yield	[3]	1.95%
Held-to-maturity securities, maturing after one year through five years, amortized cost		$ 1,343
Held-to-maturity securities, Amortized Cost		1,343
Held-to-maturity securities, maturing after one year through five years, fair value		1,337
Held-to-maturity securities, total, fair value		$ 1,337
Held-to-maturity securities, maturing after one year through five years, weighted-average maturity in years		3 years 9 months 18 days
Held-to-maturity securities, total, weighted-average maturity in years		3 years 9 months 18 days
Held-to-maturity securities, maturing after one year through five years, weighted-average yield	[3]	2.85%
Held-to-maturity securities, total, weighted-average yield	[3]	2.85%
Mortgage-Backed Securities [Member]
Contractual Maturities of Investment Securities [Line Items]
Available-for-sale securities, maturing in one year or less, amortized cost	[4]	$ 44
Available-for-sale securities, maturing after one year through five years, amortized cost	[4]	12,785
Available-for-sale securities, maturing after five years through ten years, amortized cost	[4]	33,303
Available-for-sale securities, maturing after ten years, amortized cost	[4]	25,412
Available-for-sale securities, Amortized Cost	[4]	71,544
Available-for-sale securities, maturing in one year or less, fair value	[4]	44
Available-for-sale securities, maturing after one year through five years, fair value	[4]	12,381
Available-for-sale securities, maturing after five years through ten years, fair value	[4]	30,454
Available-for-sale securities, maturing after ten years, fair value	[4]	22,437
Available-for-sale securities, total, fair value	[4]	$ 65,316
Available-for-sale securities, maturing in one year or less, weighted-average maturity in years	[4]	8 months 12 days
Available-for-sale securities, maturing after one year through five years, weighted-average maturity in years	[4]	3 years 2 months 12 days
Available-for-sale securities, maturing after five years through ten years, weighted-average maturity in years	[4]	7 years 10 months 24 days
Available-for-sale securities, maturing after ten years, weighted- average maturity in years	[4]	10 years 7 months 6 days
Available-for-sale securities, total, weighted-average maturity in years	[4]	8 years
Available-for-sale securities, maturing in one year or less, weighted-average yield	[4]	2.67%
Available-for-sale securities, maturing after one year through five years, weighted-average yield	[4]	2.03%
Available-for-sale securities, maturing after five years through ten years, weighted-average yield	[4]	1.81%
Available-for-sale securities, maturing after ten years, weighted-average yield	[4]	2.11%
Available-for-sale securities, total, weighted-average yield	[4]	1.96%
Held-to-maturity securities, maturing after five years through ten years, amortized cost	[4]	$ 23,977
Held-to-maturity securities, maturing after ten years, amortized cost	[4]	36,183
Held-to-maturity securities, Amortized Cost	[4]	60,160
Held-to-maturity securities, maturing after five years through ten years, fair value	[4]	22,825
Held-to-maturity securities, maturing after ten years, fair value	[4]	31,495
Held-to-maturity securities, total, fair value	[4]	$ 54,320
Held-to-maturity securities, maturing after five years through ten years, weighted-average maturity in years	[4]	9 years 1 month 6 days
Held-to-maturity securities, maturing after ten years, weighted-average maturity in years	[4]	10 years 7 months 6 days
Held-to-maturity securities, total, weighted-average maturity in years	[4]	10 years
Held-to-maturity securities, maturing after five years through ten years, weighted-average yield	[3],[4]	2.22%
Held-to-maturity securities, maturing after ten years, weighted-average yield	[3],[4]	1.72%
Held-to-maturity securities, total, weighted-average yield	[3],[4]	1.92%
Obligations of State and Political Subdivisions [Member]
Contractual Maturities of Investment Securities [Line Items]
Available-for-sale securities, maturing in one year or less, amortized cost	[5],[6]	$ 182
Available-for-sale securities, maturing after one year through five years, amortized cost	[5],[6]	1,974
Available-for-sale securities, maturing after five years through ten years, amortized cost		1,480
Available-for-sale securities, maturing after ten years, amortized cost		7,289
Available-for-sale securities, Amortized Cost		10,925		10,130
Available-for-sale securities, maturing in one year or less, fair value		182
Available-for-sale securities, maturing after one year through five years, fair value		1,955
Available-for-sale securities, maturing after five years through ten years, fair value		1,401
Available-for-sale securities, maturing after ten years, fair value		6,178
Available-for-sale securities, total, fair value		$ 9,716		10,717
Available-for-sale securities, maturing in one year or less, weighted-average maturity in years	[5],[6]	3 months 18 days
Available-for-sale securities, maturing after one year through five years, weighted-average maturity in years	[5],[6]	4 years
Available-for-sale securities, maturing after five years through ten years, weighted-average maturity in years	[5],[6]	7 years 2 months 12 days
Available-for-sale securities, maturing after ten years, weighted- average maturity in years	[5],[6]	16 years 10 months 24 days
Available-for-sale securities, total, weighted-average maturity in years	[5],[6]	13 years
Available-for-sale securities, maturing in one year or less, weighted-average yield	[3],[5],[6]	4.63%
Available-for-sale securities, maturing after one year through five years, weighted-average yield	[3],[5],[6]	4.43%
Available-for-sale securities, maturing after five years through ten years, weighted-average yield	[3],[5],[6]	3.82%
Available-for-sale securities, maturing after ten years, weighted-average yield	[3],[5],[6]	3.36%
Available-for-sale securities, total, weighted-average yield	[3],[5],[6]	3.64%
Other [Member]
Contractual Maturities of Investment Securities [Line Items]
Available-for-sale securities, maturing after one year through five years, amortized cost		$ 7
Available-for-sale securities, Amortized Cost		7		7
Available-for-sale securities, maturing after one year through five years, fair value		7
Available-for-sale securities, total, fair value		$ 7		$ 7
Available-for-sale securities, maturing after one year through five years, weighted-average maturity in years		2 years 10 months 24 days
Available-for-sale securities, total, weighted-average maturity in years		2 years 10 months 24 days
Available-for-sale securities, maturing after one year through five years, weighted-average yield	[3]	2.07%
Available-for-sale securities, total, weighted-average yield	[3]	2.07%

[1] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.

[2] The weighted-average maturity of total held-to-maturity investment securities was 7.4 years at December 31, 2021, with a corresponding weighted-average yield of 1.45 percent. The weighted-average maturity of total available-for-sale investment securities was 5.5 years at December 31, 2021, with a corresponding weighted-average yield of 1.73 percent.

[3] Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent. Yields on investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity.

[4] Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future prepayments.

[5] Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to maturity if the security is purchased at par or a discount.

[6] Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity date for securities with a fair value equal to or below par.

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Investment Securities - Amortized Cost, Fair Value and Yield by Maturity Date (Parenthetical) (Detail)	6 Months Ended		12 Months Ended
	Jun. 30, 2022		Dec. 31, 2021
Contractual Maturities of Investment Securities [Abstract]
Federal statutory rate	21.00%
Available for sale securities weighted average maturities	8 years 2 months 12 days	[1]	5 years 6 months
Debt securities available for sale weighted average yield	2.13%	[1],[2]	1.73%
Weighted average maturity of total held to maturity investment securities			7 years 4 months 24 days
Debt Securities, Held-to-Maturity, Weighted Average Yield	1.94%	[1]	1.45%

[1] The weighted-average maturity of total held-to-maturity investment securities was 7.4 years at December 31, 2021, with a corresponding weighted-average yield of 1.45 percent. The weighted-average maturity of total available-for-sale investment securities was 5.5 years at December 31, 2021, with a corresponding weighted-average yield of 1.73 percent.

[2] Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent. Yields on investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity.

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Loans and Allowance for Credit Losses - Composition of Loan Portfolio (Detail) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 332,369	$ 312,028
Loans, percentage	100.00%	100.00%
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 121,130	$ 106,912
Loans, percentage	36.40%	34.30%
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 125,983	$ 112,023
Loans, percentage	37.90%	35.90%
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 39,753	$ 39,053
Loans, percentage	12.00%	12.50%
Residential Mortgages [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 82,114	$ 76,493
Loans, percentage	24.70%	24.50%
Other Retail [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 60,822	$ 61,959
Loans, percentage	18.30%	19.90%
Lease Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 4,853	$ 5,111
Loans, percentage	1.50%	1.60%
Commercial Mortgages [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 29,864	$ 28,757
Loans, percentage	9.00%	9.20%
Construction and Development [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 9,889	$ 10,296
Loans, percentage	3.00%	3.30%
Residential Mortgages [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 73,522	$ 67,546
Loans, percentage	22.10%	21.60%
Home Equity Loans, First Liens [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 8,592	$ 8,947
Loans, percentage	2.60%	2.90%
Credit Card [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 23,697	$ 22,500
Loans, percentage	7.10%	7.20%
Retail Leasing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 6,490	$ 7,256
Loans, percentage	2.00%	2.30%
Home Equity and Second Mortgages [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 10,973	$ 10,446
Loans, percentage	3.30%	3.40%
Revolving Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 2,764	$ 2,750
Loans, percentage	0.80%	0.90%
Installment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 16,656	$ 16,514
Loans, percentage	5.00%	5.30%
Automobile [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 23,830	$ 24,866
Loans, percentage	7.20%	8.00%
Student [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 109	$ 127

XML

Loans and Allowance for Credit Losses - Additional Information (Detail) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022 USD ($) MortgageLoan	Jun. 30, 2022 USD ($) MortgageLoan SecurityLoan	Dec. 31, 2021 USD ($)
Loans and Allowance for Credit Losses [Line Items]
Loans pledged at the Federal Home Loan Bank	$ 92,400	$ 92,400	$ 92,100
Loans pledged at the Federal Reserve Bank	83,700	83,700	76,900
Unearned interest and deferred fees and costs on originated loans	364	364	475
Foreclosed residential real estate property included in other real estate owned	23	23	22
Foreclosed residential real estate related to mortgage loans whose payments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs	40	40	22
Residential mortgage loans secured by residential real estate in process of foreclosure	$ 1,100	$ 1,100	696
Number of residential mortgage loans, home equity and second mortgage loans, and GNMA loans where trial period was unsuccessful and no longer eligible for a permanent modification | MortgageLoan	12	28
Outstanding balance of residential mortgage loans, home equity and second mortgage loans, and GNMA loans where trial period was unsuccessful and no longer eligible for a permanent modification	$ 2	$ 4
Commitments to lend additional funds	112	112
Allowance For Individually Evaluated Loans		5
Government National Mortgage Association [Member]
Loans and Allowance for Credit Losses [Line Items]
Residential mortgage loans secured by residential real estate in process of foreclosure	$ 898	$ 898	$ 555
Home Equity and Second Mortgages [Member]
Loans and Allowance for Credit Losses [Line Items]
Number of loans in trial period | SecurityLoan		8
Outstanding balance of loans in trial period		$ 1
Estimated post-modification balance of loans in trial period		$ 1
Residential Mortgages [Member]
Loans and Allowance for Credit Losses [Line Items]
Number of loans in trial period | SecurityLoan		8
Outstanding balance of loans in trial period		$ 1
Estimated post-modification balance of loans in trial period		$ 1
Government National Mortgage Association [Member]
Loans and Allowance for Credit Losses [Line Items]
Number of loans in trial period | SecurityLoan		97
Outstanding balance of loans in trial period		$ 13
Estimated post-modification balance of loans in trial period		$ 14

XML

Loans and Allowance for Credit Losses - Activity in Allowance for Credit Losses by Portfolio Class (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	$ 6,105	$ 6,960	$ 6,155	$ 8,010
Provision for credit losses	311	(170)	423	(997)
Loans charged-off	276	314	556	688
Less recoveries of loans charged-off	(115)	(134)	(233)	(285)
Net loan charge-offs (recoveries)	161	180	323	403
Balance at end of period	6,255	6,610	6,255	6,610
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	1,836	1,932	1,849	2,423
Provision for credit losses	90	(67)	109	(502)
Loans charged-off	53	58	108	144
Less recoveries of loans charged-off	(23)	(31)	(46)	(61)
Net loan charge-offs (recoveries)	30	27	62	83
Balance at end of period	1,896	1,838	1,896	1,838
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	1,074	1,532	1,123	1,544
Provision for credit losses	(95)	(123)	(149)	(142)
Loans charged-off	9	4	10	14
Less recoveries of loans charged-off	(3)	(4)	(9)	(21)
Net loan charge-offs (recoveries)	6		1	(7)
Balance at end of period	973	1,409	973	1,409
Residential Mortgages [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	600	539	565	573
Provision for credit losses	49	(71)	78	(110)
Loans charged-off	2	5	7	10
Less recoveries of loans charged-off	(11)	(15)	(22)	(25)
Net loan charge-offs (recoveries)	(9)	(10)	(15)	(15)
Balance at end of period	658	478	658	478
Other Retail [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	956	1,005	945	1,115
Provision for credit losses	42	4	82	(71)
Loans charged-off	50	55	111	138
Less recoveries of loans charged-off	(34)	(40)	(66)	(88)
Net loan charge-offs (recoveries)	16	15	45	50
Balance at end of period	982	994	982	994
Credit Card [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance at beginning of period	1,639	1,952	1,673	2,355
Provision for credit losses	225	87	303	(172)
Loans charged-off	162	192	320	382
Less recoveries of loans charged-off	(44)	(44)	(90)	(90)
Net loan charge-offs (recoveries)	118	148	230	292
Balance at end of period	$ 1,746	$ 1,891	$ 1,746	$ 1,891

XML

Loans and Allowance for Credit Losses - Summary of Loans by Portfolio Class, Including Delinquency Status of those that Continue to Accrue Interest and are Nonperforming (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	$ 332,369	$ 312,028
Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	330,407	309,520
Accruing 30-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	814	1,202
Accruing 90 Days or More Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	423	472
Nonperforming [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	725	834
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	125,983	112,023
Commercial [Member] | Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	125,490	111,270
Commercial [Member] | Accruing 30-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	254	530
Commercial [Member] | Accruing 90 Days or More Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	91	49
Commercial [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	148	174
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	39,753	39,053
Commercial Real Estate [Member] | Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	39,519	38,678
Commercial Real Estate [Member] | Accruing 30-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	24	80
Commercial Real Estate [Member] | Accruing 90 Days or More Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	4	11
Commercial Real Estate [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	206	284
Residential Mortgages [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	82,114	76,493
Residential Mortgages [Member] | Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	81,689	75,962
Residential Mortgages [Member] | Accruing 30-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	100	124
Residential Mortgages [Member] | Accruing 90 Days or More Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	102	181
Residential Mortgages [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	223	226
Other Retail [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	60,822	61,959
Other Retail [Member] | Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	60,376	61,468
Other Retail [Member] | Accruing 30-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	236	275
Other Retail [Member] | Accruing 90 Days or More Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	62	66
Other Retail [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	148	150
Credit Card [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	23,697	22,500
Credit Card [Member] | Current [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	23,333	22,142
Credit Card [Member] | Accruing 30-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	200	193
Credit Card [Member] | Accruing 90 Days or More Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	$ 164	$ 165

XML

Loans and Allowance for Credit Losses - Summary of Loans by Portfolio Class, Including Delinquency Status of those that Continue to Accrue Interest and are Nonperforming (Parenthetical) (Detail) - Government National Mortgage Association [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Financing Receivable, Recorded Investment, Past Due [Line Items]
Loans 30-89 days past due purchased from Government National Mortgage Association mortgage pools, classified as current	$ 642		$ 642		$ 791
Loans 90 days or more past due purchased from Government National Mortgage Association mortgage pools, classified as current	1,700		1,700		$ 1,500
Interest income on nonperforming loans	$ 5	$ 4	$ 8	$ 7

XML

Loans and Allowance for Credit Losses - Summary of Loans by Portfolio Class and Company's Internal Credit Quality Rating (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 332,369	$ 312,028
Total outstanding commitments	709,433	671,419
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	327,947	306,471
Total outstanding commitments	702,561	662,363
Special Mention Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,080	1,684
Total outstanding commitments	2,021	3,372
Classified Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	3,342	3,873
Total outstanding commitments	4,851	5,684
Total Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	4,422	5,557
Total outstanding commitments	6,872	9,056
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2022	32,866
Originated in 2021	40,940	51,829
Originated in 2020	10,112	14,528
Originated in 2019	6,691	10,364
Originated in 2018	3,336	5,161
Originated prior to 2018	3,958	5,034
Revolving	28,080	25,107
Total loans	125,983	112,023
Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2022	32,672
Originated in 2021	40,532	51,155
Originated in 2020	9,809	14,091
Originated in 2019	6,624	10,159
Originated in 2018	3,313	5,122
Originated prior to 2018	3,902	4,923
Revolving	27,628	24,722
Total loans	124,480	110,172
Commercial [Member] | Special Mention Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2022	52
Originated in 2021	298	387
Originated in 2020	11	304
Originated in 2019	6	151
Originated in 2018	3	3
Originated prior to 2018	18	30
Revolving	277	268
Total loans	665	1,143
Commercial [Member] | Classified Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2022	142
Originated in 2021	110	287
Originated in 2020	292	133
Originated in 2019	61	54
Originated in 2018	20	36
Originated prior to 2018	38	81
Revolving	175	117
Total loans	838	708
Commercial [Member] | Total Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2022	194
Originated in 2021	408	674
Originated in 2020	303	437
Originated in 2019	67	205
Originated in 2018	23	39
Originated prior to 2018	56	111
Revolving	452	385
Total loans	1,503	1,851
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2022	7,286
Originated in 2021	12,507	14,360
Originated in 2020	6,767	7,920
Originated in 2019	5,489	7,229
Originated in 2018	2,588	3,254
Originated prior to 2018	3,600	4,752
Revolving	1,516	1,538
Total loans	39,753	39,053
Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2022	6,689
Originated in 2021	11,992	13,364
Originated in 2020	6,570	7,459
Originated in 2019	5,009	6,368
Originated in 2018	2,348	2,996
Originated prior to 2018	3,438	4,473
Revolving	1,511	1,494
Total loans	37,557	36,154
Commercial Real Estate [Member] | Special Mention Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2022	148
Originated in 2021	63	6
Originated in 2020	16	198
Originated in 2019	140	251
Originated in 2018	29	29
Originated prior to 2018	19	55
Revolving		1
Total loans	415	540
Commercial Real Estate [Member] | Classified Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2022	449
Originated in 2021	452	990
Originated in 2020	181	263
Originated in 2019	340	610
Originated in 2018	211	229
Originated prior to 2018	143	224
Revolving	5	43
Total loans	1,781	2,359
Commercial Real Estate [Member] | Total Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2022	597
Originated in 2021	515	996
Originated in 2020	197	461
Originated in 2019	480	861
Originated in 2018	240	258
Originated prior to 2018	162	279
Revolving	5	44
Total loans	2,196	2,899
Residential Mortgages [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2022	12,396
Originated in 2021	29,449	29,885
Originated in 2020	14,394	15,957
Originated in 2019	5,858	6,974
Originated in 2018	2,401	2,919
Originated prior to 2018	17,616	20,757
Revolving		1
Total loans	82,114	76,493
Residential Mortgages [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2022	12,396
Originated in 2021	29,446	29,882
Originated in 2020	14,384	15,948
Originated in 2019	5,834	6,938
Originated in 2018	2,383	2,889
Originated prior to 2018	17,328	20,415
Revolving		1
Total loans	81,771	76,073
Residential Mortgages [Member] | Special Mention Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2020		1
Total loans		1
Residential Mortgages [Member] | Classified Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2021	3	3
Originated in 2020	10	8
Originated in 2019	24	36
Originated in 2018	18	30
Originated prior to 2018	288	342
Total loans	343	419
Residential Mortgages [Member] | Total Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2021	3	3
Originated in 2020	10	9
Originated in 2019	24	36
Originated in 2018	18	30
Originated prior to 2018	288	342
Total loans	343	420
Other Retail [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2022	7,651
Originated in 2021	18,833	22,461
Originated in 2020	9,991	12,080
Originated in 2019	5,489	7,240
Originated in 2018	2,214	3,299
Originated prior to 2018	2,644	3,723
Revolving	13,494	12,644
Revolving converted to term	506	512
Total loans	60,822	61,959
Other Retail [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2022	7,650
Originated in 2021	18,825	22,455
Originated in 2020	9,981	12,071
Originated in 2019	5,476	7,223
Originated in 2018	2,204	3,285
Originated prior to 2018	2,626	3,699
Revolving	13,381	12,532
Revolving converted to term	464	472
Total loans	60,607	61,737
Other Retail [Member] | Classified Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2022	1
Originated in 2021	8	6
Originated in 2020	10	9
Originated in 2019	13	17
Originated in 2018	10	14
Originated prior to 2018	18	24
Revolving	113	112
Revolving converted to term	42	40
Total loans	215	222
Other Retail [Member] | Total Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Originated in 2022	1
Originated in 2021	8	6
Originated in 2020	10	9
Originated in 2019	13	17
Originated in 2018	10	14
Originated prior to 2018	18	24
Revolving	113	112
Revolving converted to term	42	40
Total loans	215	222
Credit Card [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	23,697	22,500
Credit Card [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	23,532	22,335
Credit Card [Member] | Classified Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	165	165
Credit Card [Member] | Total Criticized [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 165	$ 165

XML

Loans and Allowance for Credit Losses - Summary of Loans by Portfolio Class and Company's Internal Credit Quality Rating (Parenthetical) (Detail) - Government National Mortgage Association [Member] - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable, Recorded Investment [Line Items]
Restructured GNMA loans,classified with a pass rating	$ 965	$ 1,100
GNMA loans 90 days or more past due, classified with a pass rating	$ 1,700	$ 1,500

XML

Loans and Allowance for Credit Losses - Summary of Loans Modified as TDRs (Detail) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) SecurityLoan	Jun. 30, 2021 USD ($) SecurityLoan	Jun. 30, 2022 USD ($) SecurityLoan	Jun. 30, 2021 USD ($) SecurityLoan
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	10,705	6,912	22,520	15,678
Pre-Modification Outstanding Loan Balance	$ 286	$ 307	$ 705	$ 729
Post-Modification Outstanding Loan Balance	$ 275	$ 311	$ 685	$ 701
Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	506	526	1,015	1,230
Pre-Modification Outstanding Loan Balance	$ 50	$ 12	$ 88	$ 87
Post-Modification Outstanding Loan Balance	$ 41	$ 13	$ 73	$ 73
Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	28	30	37	86
Pre-Modification Outstanding Loan Balance	$ 11	$ 38	$ 22	$ 124
Post-Modification Outstanding Loan Balance	$ 9	$ 41	$ 19	$ 112
Residential Mortgages [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	366	360	1,206	696
Pre-Modification Outstanding Loan Balance	$ 106	$ 141	$ 334	$ 245
Post-Modification Outstanding Loan Balance	$ 106	$ 140	$ 332	$ 244
Other Retail [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	756	468	1,484	1,793
Pre-Modification Outstanding Loan Balance	$ 24	$ 18	$ 61	$ 55
Post-Modification Outstanding Loan Balance	$ 20	$ 17	$ 57	$ 49
Credit Card [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	8,696	5,050	18,035	10,836
Pre-Modification Outstanding Loan Balance	$ 48	$ 31	$ 98	$ 64
Post-Modification Outstanding Loan Balance	$ 49	$ 31	$ 99	$ 65
Total Loans, Excluding Loans Purchased from GNMA Mortgage Pools [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	10,352	6,434	21,777	14,641
Pre-Modification Outstanding Loan Balance	$ 239	$ 240	$ 603	$ 575
Post-Modification Outstanding Loan Balance	$ 225	$ 242	$ 580	$ 543
Government National Mortgage Association [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	353	478	743	1,037
Pre-Modification Outstanding Loan Balance	$ 47	$ 67	$ 102	$ 154
Post-Modification Outstanding Loan Balance	$ 50	$ 69	$ 105	$ 158

XML

Loans and Allowance for Credit Losses - Summary of Loans Modified as TDRs in the Past Twelve Months that have Subsequently Defaulted (Detail) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) SecurityLoan	Jun. 30, 2021 USD ($) SecurityLoan	Jun. 30, 2022 USD ($) SecurityLoan	Jun. 30, 2021 USD ($) SecurityLoan
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	2,163	2,383	4,180	4,764
Amount Defaulted | $	$ 38	$ 30	$ 63	$ 71
Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	175	327	389	612
Amount Defaulted | $	$ 3	$ 8	$ 6	$ 24
Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	2	5	5	12
Amount Defaulted | $	$ 1	$ 1	$ 2	$ 6
Residential Mortgages [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	79	12	113	27
Amount Defaulted | $	$ 7	$ 1	$ 10	$ 3
Other Retail [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	60	191	143	471
Amount Defaulted | $	$ 1	$ 3	$ 2	$ 8
Credit Card [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	1,727	1,805	3,361	3,569
Amount Defaulted | $	$ 9	$ 11	$ 18	$ 20
Total Loans, Excluding Loans Purchased from GNMA Mortgage Pools [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	2,043	2,340	4,011	4,691
Amount Defaulted | $	$ 21	$ 24	$ 38	$ 61
Government National Mortgage Association [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	120	43	169	73
Amount Defaulted | $	$ 17	$ 6	$ 25	$ 10

XML

Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Variable Interest Entity [Line Items]
Assets related to consolidated VIEs	$ 591,381		$ 591,381		$ 573,284
Liabilities related to consolidated VIEs	542,312		542,312		517,897
Community Development And Tax Advantaged Investments [Member]
Variable Interest Entity [Line Items]
Federal and state income tax credits recognized in tax expense	112	$ 110	225	$ 243
Expense related to investments	106	106	208	232
Investment tax credits	162	123	175	160
Expenses related to investments recognized in tax expense	92	87	183	179
Financial Support Waived Fees [Member]
Variable Interest Entity [Line Items]
Financial or other support to money market funds	7	$ 70	65	$ 117
Variable Interest Entity Not Primary Beneficiary [Member] | Private Investment Funds and Partnerships [Member]
Variable Interest Entity [Line Items]
Maximum exposure to loss	87		87		84
Assets related to consolidated VIEs	46		46		40
Variable Interest Entity Not Primary Beneficiary [Member] | Community Development And Tax Advantaged Investments [Member]
Variable Interest Entity [Line Items]
Maximum exposure to loss	9,872		9,872		9,899
Assets related to consolidated VIEs	4,999		4,999		4,484
Liabilities related to consolidated VIEs	2,210		2,210		1,890
Variable Interest Entity Not Primary Beneficiary [Member] | Minimum [Member]
Variable Interest Entity [Line Items]
Aggregate amount of investments in unconsolidated VIEs	1		1		1
Variable Interest Entity Not Primary Beneficiary [Member] | Maximum [Member]
Variable Interest Entity [Line Items]
Aggregate amount of investments in unconsolidated VIEs	105		105		75
Variable Interest Entity Primary Beneficiary [Member] | Community Development And Tax Advantaged Investments [Member]
Variable Interest Entity [Line Items]
Assets related to consolidated VIEs	4,900		4,900		5,000
Liabilities related to consolidated VIEs	3,300		3,300		3,400
Variable Interest Entity Primary Beneficiary [Member] | Tender Option Bond Program [Member]
Variable Interest Entity [Line Items]
Assets related to consolidated VIEs	1,500		1,500		1,700
Liabilities related to consolidated VIEs	$ 1,200		$ 1,200		$ 1,200

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Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities - Summary of Investments in Community Development and Tax-advantaged VIEs (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Variable Interest Entity [Line Items]
Investment carrying amount	$ 591,381	$ 573,284
Unfunded capital and other commitments	542,312	517,897
Variable Interest Entity Not Primary Beneficiary [Member] | Community Development And Tax Advantaged Investments [Member]
Variable Interest Entity [Line Items]
Investment carrying amount	4,999	4,484
Unfunded capital and other commitments	2,210	1,890
Maximum exposure to loss	$ 9,872	$ 9,899

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Mortgage Servicing Rights - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Transfers and Servicing of Financial Assets [Abstract]
Residential mortgage loans serviced for others including subserviced mortgages with no corresponding MSRs asset	$ 226,400		$ 226,400		$ 222,400
Gain (Loss) on fair value changes of MSRs due to changes in valuation assumptions and derivatives used to economically hedge MSRs	13	$ (27)	(16)	$ (147)
Loan servicing and ancillary fees	$ 186	$ 178	$ 371	$ 353

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Mortgage Servicing Rights - Changes in Fair Value of Capitalized MSRs (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Transfers and Servicing of Financial Assets [Abstract]
Balance at beginning of period	$ 3,432	$ 2,787	$ 2,953	$ 2,210
Rights purchased	3	11	6	27
Rights capitalized	102	293	339	612
Rights sold		1	1	1
Changes in fair value of MSRs
Due to fluctuations in market interest rates	289	(232)	657	254
Due to revised assumptions or models	6	(37)	(21)	(139)
Other changes in fair value	(125)	(110)	(228)	(252)
Balance at end of period	$ 3,707	$ 2,713	$ 3,707	$ 2,713

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Mortgage Servicing Rights - Sensitivity to Changes in Interest Rates of the Fair Value of MSR Portfolio and Related Derivative Instruments (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Down Scenario [Member] | Mortgage Servicing Rights [Member]
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Net fair value 100 basis points	$ (380)	$ (636)
Net fair value 50 basis points	(172)	(324)
Net fair value 25 basis points	(81)	(160)
Down Scenario [Member] | Derivative [Member]
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Net fair value 100 basis points	371	614
Net fair value 50 basis points	170	309
Net fair value 25 basis points	81	152
Down Scenario [Member] | Net Sensitivity [Member]
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Net fair value 100 basis points	(9)	(22)
Net fair value 50 basis points	(2)	(15)
Net fair value 25 basis points	0	(8)
Up Scenario [Member] | Mortgage Servicing Rights [Member]
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Net fair value 100 basis points	231	511
Net fair value 50 basis points	133	287
Net fair value 25 basis points	71	150
Up Scenario [Member] | Derivative [Member]
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Net fair value 100 basis points	(261)	(536)
Net fair value 50 basis points	(141)	(278)
Net fair value 25 basis points	(73)	(142)
Up Scenario [Member] | Net Sensitivity [Member]
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Net fair value 100 basis points	(30)	(25)
Net fair value 50 basis points	(8)	9
Net fair value 25 basis points	$ (2)	$ 8

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Mortgage Servicing Rights - MSRs and Related Characteristics by Portfolio (Detail) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($) BasisPoint Multiple	Dec. 31, 2021 USD ($) BasisPoint Multiple	Mar. 31, 2022 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Servicing Assets at Fair Value [Line Items]
Fair value	$ 3,707	$ 2,953	$ 3,432	$ 2,713	$ 2,787	$ 2,210
Mortgage Servicing Rights [Member]
Servicing Assets at Fair Value [Line Items]
Servicing portfolio	222,716	218,953
Fair value	$ 3,707	$ 2,953
Value (bps) | BasisPoint	166	135
Weighted-average servicing fees (bps) | BasisPoint	32	32
Multiple (value/servicing fees)	5.15	4.18
Weighted-average note rate	3.54%	3.56%
Weighted-average age (in years)	3 years 9 months 18 days	3 years 8 months 12 days
Prepayment (constant prepayment rate)	6.90%	10.30%
Weighted-average expected life (in years)	8 years 2 months 12 days	6 years 8 months 12 days
Weighted-average option adjusted spread	6.20%	6.60%
HFA [Member] | Mortgage Servicing Rights [Member]
Servicing Assets at Fair Value [Line Items]
Servicing portfolio	$ 41,701	$ 40,652
Fair value	$ 697	$ 527
Value (bps) | BasisPoint	167	130
Weighted-average servicing fees (bps) | BasisPoint	36	36
Multiple (value/servicing fees) | Multiple	4.65	3.63
Weighted-average note rate	4.02%	4.07%
Weighted-average age (in years)	3 years 10 months 24 days	3 years 9 months 18 days
Prepayment (constant prepayment rate)	7.50%	11.50%
Weighted-average expected life (in years)	8 years 7 months 6 days	6 years 6 months
Weighted-average option adjusted spread	7.20%	7.30%
Government Insured [Member] | Mortgage Servicing Rights [Member]
Servicing Assets at Fair Value [Line Items]
Servicing portfolio	$ 21,358	$ 21,919
Fair value	$ 403	$ 308
Value (bps) | BasisPoint	189	141
Weighted-average servicing fees (bps) | BasisPoint	41	41
Multiple (value/servicing fees) | Multiple	4.59	3.43
Weighted-average note rate	3.67%	3.70%
Weighted-average age (in years)	6 years	5 years 10 months 24 days
Prepayment (constant prepayment rate)	8.50%	13.20%
Weighted-average expected life (in years)	7 years 4 months 24 days	5 years 7 months 6 days
Weighted-average option adjusted spread	6.90%	7.30%
Conventional [Member] | Mortgage Servicing Rights [Member]
Servicing Assets at Fair Value [Line Items]
Servicing portfolio	$ 159,657	$ 156,382
Fair value	$ 2,607	$ 2,118
Value (bps) | BasisPoint	163	135
Weighted-average servicing fees (bps) | BasisPoint	30	30
Multiple (value/servicing fees) | Multiple	5.41	4.5
Weighted-average note rate	3.40%	3.41%
Weighted-average age (in years)	3 years 6 months	3 years 3 months 18 days
Prepayment (constant prepayment rate)	6.50%	9.60%
Weighted-average expected life (in years)	8 years 2 months 12 days	6 years 10 months 24 days
Weighted-average option adjusted spread	5.90%	6.30%

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Preferred Stock - Additional Information (Detail) - $ / shares	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Number of preferred stock shares authorized	50,000,000	50,000,000
Series O Preferred Stock [Member]
Preferred Stock, Shares Issued	18,000
Liquidation preference per share	$ 25,000
Preferred stock dividend rate fixed percentage	4.50%

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Preferred Stock - Number of Shares Issued and Outstanding and Carrying Amount of Preferred Stock (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Shares Issued and Outstanding	243,510	225,510
Liquidation Preference	$ 7,026	$ 6,576
Discount	218	205
Carrying Amount	$ 6,808	$ 6,371
Series A [Member]
Class of Stock [Line Items]
Shares Issued and Outstanding	12,510	12,510
Liquidation Preference	$ 1,251	$ 1,251
Discount	145	145
Carrying Amount	$ 1,106	$ 1,106
Series B [Member]
Class of Stock [Line Items]
Shares Issued and Outstanding	40,000	40,000
Liquidation Preference	$ 1,000	$ 1,000
Carrying Amount	$ 1,000	$ 1,000
Series J [Member]
Class of Stock [Line Items]
Shares Issued and Outstanding	40,000	40,000
Liquidation Preference	$ 1,000	$ 1,000
Discount	7	7
Carrying Amount	$ 993	$ 993
Series K [Member]
Class of Stock [Line Items]
Shares Issued and Outstanding	23,000	23,000
Liquidation Preference	$ 575	$ 575
Discount	10	10
Carrying Amount	$ 565	$ 565
Series L [Member]
Class of Stock [Line Items]
Shares Issued and Outstanding	20,000	20,000
Liquidation Preference	$ 500	$ 500
Discount	14	14
Carrying Amount	$ 486	$ 486
Series M [Member]
Class of Stock [Line Items]
Shares Issued and Outstanding	30,000	30,000
Liquidation Preference	$ 750	$ 750
Discount	21	21
Carrying Amount	$ 729	$ 729
Series N [Member]
Class of Stock [Line Items]
Shares Issued and Outstanding	60,000	60,000
Liquidation Preference	$ 1,500	$ 1,500
Discount	8	8
Carrying Amount	$ 1,492	$ 1,492
Series O
Class of Stock [Line Items]
Shares Issued and Outstanding	18,000
Liquidation Preference	$ 450
Discount	13
Carrying Amount	$ 437

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Preferred Stock - Number of Shares Issued and Outstanding and Carrying Amount of Preferred Stock (Parenthetical) (Detail) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Equity [Abstract]
Preferred stock, par value	$ 1	$ 1

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Accumulated Other Comprehensive Income (Loss) - Reconciliation of Transactions Affecting Accumulated Other Comprehensive Income (Loss) Included in Shareholders' Equity (Detail) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period		$ (6,938)	$ (2,095)	$ (1,943)	$ 322
Changes in unrealized gains (losses)		(4,761)	1,195	(11,515)	(2,183)
Changes in unrealized gains (losses)		98	14	98	113
Changes in unrealized gains (losses)		(4,663)	1,209	(11,417)	(2,070)
Foreign currency translation adjustment	[1]	(3)	(1)	(3)	24
Reclassification to earnings of realized (gains) losses		84	(11)	151	7
Applicable income taxes		1,159	(304)	2,851	515
Balance at end of period		(10,361)	(1,202)	(10,361)	(1,202)
Foreign Currency Translation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period		(37)	(45)	(37)	(64)
Foreign currency translation adjustment	[1]	(3)	(1)	(3)	24
Applicable income taxes		1	(1)	1	(7)
Balance at end of period		(39)	(47)	(39)	(47)
Unrealized Gains (Losses) on Retirement Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period		(1,402)	(1,813)	(1,426)	(1,842)
Foreign currency translation adjustment	[1]	0		0
Reclassification to earnings of realized (gains) losses		32	40	64	79
Applicable income taxes		(8)	(10)	(16)	(20)
Balance at end of period		(1,378)	(1,783)	(1,378)	(1,783)
Unrealized Gains (Losses) on Derivative Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period		(77)	(112)	(85)	(189)
Changes in unrealized gains (losses)		98	14	98	113
Foreign currency translation adjustment	[1]	0		0
Reclassification to earnings of realized (gains) losses		10	(8)	21	(4)
Applicable income taxes		(27)	(1)	(30)	(27)
Balance at end of period		4	(107)	4	(107)
Unrealized Gains (Losses) on Investment Securities Transferred From Available For Sale to Held To Maturity [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period		(904)		(935)
Changes in unrealized gains (losses)		0		0
Transfer of securities from available-for-sale to held-to-maturity		(1,381)		(1,381)
Foreign currency translation adjustment	[1]	0		0
Reclassification to earnings of realized (gains) losses		61		103
Applicable income taxes		334		323
Balance at end of period		(1,890)		(1,890)
Unrealized Gains (Losses) on Investment Securities Available-For-Sale [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period		(4,518)	(125)	540	2,417
Changes in unrealized gains (losses)		(4,761)	1,195	(11,515)	(2,183)
Transfer of securities from available-for-sale to held-to-maturity		1,381		1,381
Foreign currency translation adjustment	[1]	0		0
Reclassification to earnings of realized (gains) losses		(19)	(43)	(37)	(68)
Applicable income taxes		859	(292)	2,573	569
Balance at end of period		$ (7,058)	$ 735	$ (7,058)	$ 735

[1] Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges.

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Accumulated Other Comprehensive Income (Loss) - Impact to Net Income for Items Reclassified out of Accumulated Other Comprehensive Income and into Earnings (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Realized gains (losses) on sale of investment securities	$ 19	$ 43	$ 37	$ 68
Amortization of unrealized gains on securities transferred from available-for-sale to held-to-maturity, Interest income	3,825	3,382	7,243	6,723
Realized gains (losses) on derivative hedges	(390)	(245)	(635)	(523)
Actuarial gains (losses) and prior service cost (credit) amortization	(340)	(329)	(662)	(646)
Applicable income taxes	(414)	(551)	(811)	(1,158)
Net income	1,534	1,988	3,092	4,273
Reclassification Out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	(63)	8	(113)	(5)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Investment Securities Available-For-Sale [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Realized gains (losses) on sale of investment securities	19	43	37	68
Applicable income taxes	(5)	(11)	(9)	(17)
Net income	14	32	28	51
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Investment Securities Transferred From Available For Sale to Held To Maturity [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of unrealized gains on securities transferred from available-for-sale to held-to-maturity, Interest income	(61)		(103)
Applicable income taxes	16		26
Net income	(45)		(77)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivative Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Realized gains (losses) on derivative hedges	(10)	8	(21)	4
Applicable income taxes	2	(2)	5	(1)
Net income	(8)	6	(16)	3
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Retirement Plans [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Actuarial gains (losses) and prior service cost (credit) amortization	(32)	(40)	(64)	(79)
Applicable income taxes	8	10	16	20
Net income	$ (24)	$ (30)	$ (48)	$ (59)

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Earnings Per Share - Components of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2022		Jun. 30, 2021		Jun. 30, 2022		Jun. 30, 2021
Earnings Per Share [Abstract]
Net income attributable to U.S. Bancorp	$ 1,531		$ 1,982		$ 3,088		$ 4,262
Preferred dividends	(59)	[1]	(58)	[2]	(143)	[3]	(148)	[4]
Impact of preferred stock call							(5)
Earnings allocated to participating stock awards	(8)		(10)		(15)		(20)
Net income applicable to U.S. Bancorp common shareholders	$ 1,464		$ 1,914		$ 2,930		$ 4,089
Average common shares outstanding	1,486		1,489		1,485		1,495
Net effect of the exercise and assumed purchase of stock awards	1		1		1		2
Average diluted common shares outstanding	1,487		1,490		1,486		1,497
Earnings per common share	$ 0.99		$ 1.29		$ 1.97		$ 2.73
Diluted earnings per common share	$ 0.99		$ 1.28		$ 1.97		$ 2.73

[1] Reflects dividends declared per share on the Company’s Series A, Series B, Series K, Series L, Series M, Series N and Series O Non-Cumulative Perpetual Preferred Stock of $884.722, $221.181, $343.75, $234.375, $250.00, $231.25 and $281.25 respectively.

[2] Reflects dividends declared per share on the Company’s Series A, Series B, Series F, Series K, Series L and Series M Non-Cumulative Perpetual Preferred Stock of $884.722, $221.181, $406.25, $343.75, $234.375 and $250.00 respectively.

[3] Reflects dividends declared per share on the Company’s Series A, Series B, Series J, Series K, Series L, Series M, Series N and Series O Non-Cumulative Perpetual Preferred Stock of $1,759.722, $439.931, $662.50, $687.50, $468.75, $500.00, $462.50 and $487.50 respectively.

[4] Reflects dividends declared per share on the Company’s Series A, Series B, Series F, Series I, Series J, Series K, Series L and Series M Non-Cumulative Perpetual Preferred Stock of $1,759.722, $439.931, $812.50, $232.953, $662.50, $687.50, $468.75 and $452.778 respectively.

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Earnings Per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2021
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options outstanding of common shares	1	1	1

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Employee Benefits - Components of Net Periodic Benefit Cost and Other Amounts Recognized in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Pension Plans [Member]
Components Of Net Periodic Benefit Cost
Service cost	$ 68	$ 66	$ 137	$ 132
Interest cost	62	55	123	110
Expected return on plan assets	(120)	(113)	(239)	(225)
Prior service cost (credit) amortization		(1)	(1)	(1)
Actuarial loss (gain) amortization	35	43	70	85
Net periodic benefit cost	45	50	90	101
Postretirement Welfare Plan [Member]
Components Of Net Periodic Benefit Cost
Prior service cost (credit) amortization	(2)	(1)	(2)	(2)
Actuarial loss (gain) amortization	(1)	(1)	(3)	(3)
Net periodic benefit cost	$ (3)	$ (2)	$ (5)	$ (5)

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Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Federal
Current	$ 221	$ 350	$ 625	$ 703
Deferred	107	76	5	206
Federal income tax	328	426	630	909
State
Current	89	109	178	203
Deferred	(3)	16	3	46
State income tax	86	125	181	249
Applicable income taxes	$ 414	$ 551	$ 811	$ 1,158

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Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Income Taxes Additional Information [Abstract]
Federal statutory rate	21.00%
Net deferred tax asset	$ 3,600	$ 785

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Income Taxes - Reconciliation of Expected Income Tax Expense at Federal Statutory Rate of 21 Percent to Company's Applicable Income Tax Expense (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Tax at statutory rate	$ 409	$ 533	$ 820	$ 1,140
State income tax, at statutory rates, net of federal tax benefit	84	105	168	219
Tax credits and benefits, net of related expenses	(46)	(83)	(152)	(176)
Tax-exempt income	(29)	(29)	(57)	(57)
Other items	(4)	25	32	32
Applicable income taxes	$ 414	$ 551	$ 811	$ 1,158

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Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Derivative [Line Items]
Realized and unrealized gains (losses) on derivatives classified as cash flow hedges recorded in other comprehensive income (loss)	$ 4	$ (85)
Fair value of derivatives under collateral agreements in a net liability position	1,500
Collateral posted by company netted against net liability position	1,200
Estimated gain to be reclassified from other comprehensive income (loss) into earnings	(15)
Derivative, Notional amount	800,600
Net Investment Hedging [Member]
Derivative [Line Items]
Non-derivative debt instruments designated as net investment hedges	$ 1,200	1,300
Cash Flow Hedges [Member]
Derivative [Line Items]
Derivative, Notional amount		$ 0

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Derivative Instruments - Summary of Asset and Liability Management Derivative Positions of Company (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Derivative [Line Items]
Notional Value	$ 800,600
Cash Flow Hedges [Member]
Derivative [Line Items]
Notional Value		$ 0
Asset and Liability Management Positions [Member]
Derivative [Line Items]
Notional Value	93,147	116,117
Fair Value, Assets	361	350
Fair Value, Liabilities	271	409
Asset and Liability Management Positions [Member] | Other Derivatives [Member]
Derivative [Line Items]
Notional Value	2,344	1,792
Fair Value, Assets	2
Fair Value, Liabilities	81	125
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Receive Fixed/Pay Floating Swaps [Member]
Derivative [Line Items]
Notional Value	11,420	9,653
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Pay Fixed/Receive Floating Swaps [Member]
Derivative [Line Items]
Notional Value	12,481	7,033
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Futures and Forwards [Member] | Purchased [Member]
Derivative [Line Items]
Notional Value	11,040	9,322
Fair Value, Assets	30	10
Fair Value, Liabilities	63	16
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Futures and Forwards [Member] | Written [Member]
Derivative [Line Items]
Notional Value	9,811	29,348
Fair Value, Assets	34	25
Fair Value, Liabilities	31	27
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Options [Member] | Purchased [Member]
Derivative [Line Items]
Notional Value	7,480	18,570
Fair Value, Assets	260	256
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Options [Member] | Written [Member]
Derivative [Line Items]
Notional Value	7,208	9,662
Fair Value, Assets	20	52
Fair Value, Liabilities	93	231
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Foreign Exchange Forward Contracts [Member]
Derivative [Line Items]
Notional Value	852	735
Fair Value, Assets	5	2
Fair Value, Liabilities	2	6
Asset and Liability Management Positions [Member] | Other Economic Hedges [Member] | Equity Contracts [Member]
Derivative [Line Items]
Notional Value	186	209
Fair Value, Assets	4	5
Fair Value, Liabilities	0
Asset and Liability Management Positions [Member] | Fair Value Hedges [Member] | Interest Rate Contracts [Member] | Receive Fixed/Pay Floating Swaps [Member]
Derivative [Line Items]
Notional Value	17,400	12,350
Asset and Liability Management Positions [Member] | Fair Value Hedges [Member] | Interest Rate Contracts [Member] | Pay Fixed/Receive Floating Swaps [Member]
Derivative [Line Items]
Notional Value	3,820	16,650
Asset and Liability Management Positions [Member] | Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | Receive Fixed/Pay Floating Swaps [Member]
Derivative [Line Items]
Notional Value	8,300
Asset and Liability Management Positions [Member] | Net Investment Hedges [Member] | Foreign Exchange Forward Contracts [Member]
Derivative [Line Items]
Notional Value	805	793
Fair Value, Assets	6
Fair Value, Liabilities	$ 1	$ 4

XML

Derivative Instruments - Summary of Asset and Liability Management Derivative Positions of Company (Parenthetical) (Detail) - Asset and Liability Management Positions [Member] - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Derivative [Line Items]
Fair Value, Liabilities	$ 271	$ 409
Swap [Member] | Visa Class B Shares [Member]
Derivative [Line Items]
Notional Value, Liabilities	1,800	1,800
Fair Value, Liabilities	79	125
Underwriting Purchase and Sale Commitments [Member]
Derivative [Line Items]
Notional Value, Assets	565	8
Notional Value, Liabilities	$ 565	$ 8

XML

Derivative Instruments - Summary of Customer-Related Derivative Positions of Company (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Derivative [Line Items]
Notional Value	$ 800,600
Customer-Related Positions [Member]
Derivative [Line Items]
Notional Value	707,430	$ 651,844
Fair Value, Assets	5,028	3,537
Fair Value, Liabilities	6,610	2,489
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Receive Fixed/Pay Floating Swaps [Member]
Derivative [Line Items]
Notional Value	204,454	178,701
Fair Value, Assets	458	2,007
Fair Value, Liabilities	3,125	438
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Pay Fixed/Receive Floating Swaps [Member]
Derivative [Line Items]
Notional Value	193,869	174,176
Fair Value, Assets	1,308	134
Fair Value, Liabilities	214	670
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Other Derivatives [Member]
Derivative [Line Items]
Notional Value	19,451	16,267
Fair Value, Assets	1	1
Fair Value, Liabilities	3	2
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Options [Member] | Purchased [Member]
Derivative [Line Items]
Notional Value	90,183	89,679
Fair Value, Assets	993	194
Fair Value, Liabilities	5	36
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Options [Member] | Written [Member]
Derivative [Line Items]
Notional Value	87,585	85,211
Fair Value, Assets	6	36
Fair Value, Liabilities	979	176
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Futures [Member] | Purchased [Member]
Derivative [Line Items]
Notional Value	475	3,607
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Futures [Member] | Written [Member]
Derivative [Line Items]
Notional Value	4,928	3,941
Customer-Related Positions [Member] | Foreign Exchange Rate Contracts [Member] | Forwards, Spots and Swaps [Member]
Derivative [Line Items]
Notional Value	95,611	89,321
Fair Value, Assets	2,222	1,145
Fair Value, Liabilities	2,239	1,143
Customer-Related Positions [Member] | Foreign Exchange Option [Member] | Purchased [Member]
Derivative [Line Items]
Notional Value	861	805
Fair Value, Assets	39	19
Customer-Related Positions [Member] | Foreign Exchange Option [Member] | Written [Member]
Derivative [Line Items]
Notional Value	861	805
Fair Value, Liabilities	39	19
Customer-Related Positions [Member] | Credit Contracts [Member]
Derivative [Line Items]
Notional Value	9,152	9,331
Fair Value, Assets	1	1
Fair Value, Liabilities	$ 6	$ 5

XML

Derivative Instruments - Summary of Effective Portion of Gains (Losses) Recognized in Other Comprehensive Income (Loss) and Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings (Detail) - Asset and Liability Management Positions [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Cash Flow Hedges [Member] | Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Losses) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	$ 73	$ 11	$ 73	$ 85
Derivative Instruments, Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings	(8)	6	(16)	3
Net Investment Hedges [Member] | Foreign Exchange Forward Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Losses) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	27	(8)	26	(1)
Net Investment Hedges [Member] | Non Derivative Debt Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments, Gain (Losses) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	$ 63	$ (14)	$ 83	$ 34

XML

Derivative Instruments - Summary of Effect of Fair Value and Cash Flow Hedge Accounting on Consolidated Statement of Income (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Interest Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Total amount of income line items presented in the Consolidated Statement of Income in which the effects of fair value or cash flow hedges are recorded	$ 3,825	$ 3,382	$ 7,243	$ 6,723
Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Total amount of income line items presented in the Consolidated Statement of Income in which the effects of fair value or cash flow hedges are recorded	390	245	635	523
Asset and Liability Management Positions [Member] | Fair Value Hedges [Member] | Interest Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gains (Losses) Recognized in Earnings related to fair value hedged item	187	29	(331)	30
Asset and Liability Management Positions [Member] | Fair Value Hedges [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gains (Losses) Recognized in Earnings related to fair value hedged item	36	(17)	(35)	(72)
Asset and Liability Management Positions [Member] | Fair Value Hedges [Member] | Interest Rate Contracts [Member] | Interest Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gains (Losses) Recognized in Earnings related to fair value hedge	(186)	(30)	331	(31)
Asset and Liability Management Positions [Member] | Fair Value Hedges [Member] | Interest Rate Contracts [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gains (Losses) Recognized in Earnings related to fair value hedge	(38)	18	34	73
Asset and Liability Management Positions [Member] | Cash Flow Hedges [Member] | Interest Rate Contracts [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gains (Losses) Recognized in Earnings related to cash flow hedge	$ 10	$ (8)	$ 21	$ (4)

XML

Derivative Instruments - Summary of Effect of Fair Value and Cash Flow Hedge Accounting on Consolidated Statement of Income (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Derivative Instrument Detail [Abstract]
Gains (losses) recognized in earnings related discontinuance of cash flow hedges	$ 10	$ 12	$ 21	$ 27

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Derivative Instruments - Summary of Cumulative Hedging Adjustments and the Carrying Amount of Assets and Liabilities Designated in Fair Value Hedges (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Available-for-Sale Securities [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Carrying Amount of the Hedged Assets	$ 3,124	$ 16,445
Cumulative hedging adjustment included in the carrying amount of the hedged assets	(716)	(26)
Long-term Debt Securities [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Carrying amount of the hedged liabilities	17,724	12,278
Cumulative hedging adjustment included in the carrying amount of the hedged liabilities	$ 378	$ 585

XML

Derivative Instruments - Summary of Cumulative Hedging Adjustments and the Carrying Amount of Assets and Liabilities Designated in Fair Value Hedges (Parenthetical) (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Long-term Debt Securities [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Cumulative hedging adjustment related to discontinued hedging relationships	$ 468	$ 640
Available-for-Sale Securities [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Cumulative hedging adjustment asset related to discontinued hedging relationships	$ (365)	$ (6)

XML

Derivative Instruments - Summary of Gains (Losses) Recognized in Earnings for Other Economic Hedges and Customer-Related Positions (Detail) - Asset and Liability Management Positions [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Credit Contracts [Member] | Commercial Products Revenue [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	$ 17	$ (4)	$ 22	$ (2)
Foreign Exchange Rate Contracts [Member] | Commercial Products Revenue [Member] | Options [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	1		1
Foreign Exchange Rate Contracts [Member] | Commercial Products Revenue [Member] | Forwards, Spots and Swaps [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	20	27	35	46
Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Mortgage Banking Revenue [Member] | Futures and Forwards [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	74	(99)	297	331
Other Economic Hedges [Member] | Interest Rate Contracts [Member] | Mortgage Banking Revenue [Member] | Options [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	6	253	(41)	265
Other Economic Hedges [Member] | Swaps [Member] | Mortgage Banking Revenue [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	(247)	193	(451)	(197)
Other Economic Hedges [Member] | Equity Contracts [Member] | Compensation Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	(1)	1	(3)	5
Other Economic Hedges [Member] | Other Derivatives [Member] | Other Noninterest Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	1	1	0	1
Other Economic Hedges [Member] | Foreign Exchange Rate Contracts [Member] | Other Noninterest Income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	4	(7)	1	(10)
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Commercial Products Revenue [Member] | Options [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	0	4	4	(3)
Customer-Related Positions [Member] | Interest Rate Contracts [Member] | Commercial Products Revenue [Member] | Futures [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	8		24
Customer-Related Positions [Member] | Swaps [Member] | Commercial Products Revenue [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gains (losses) recognized in earnings	$ 30	$ 25	$ 47	$ 52

XML

Netting Arrangements for Certain Financial Instruments and Securities Financing Activities - Additional Information (Detail) $ in Billions	Jun. 30, 2022 USD ($)
Derivative [Line Items]
Notional amount of derivative	$ 800.6
Over the Counter Trades [Member]
Derivative [Line Items]
Notional amount of derivative	409.7
Exchange Cleared [Member]
Derivative [Line Items]
Notional amount of derivative	383.9
Exchange Traded [Member]
Derivative [Line Items]
Notional amount of derivative	$ 7.0

XML

Netting Arrangements for Certain Financial Instruments and Securities Financing Activities - Summary of Maturities by Category of Collateral Pledged for Repurchase Agreements and Securities Loaned Transactions (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements	$ 1,995	$ 1,575
Securities loaned	225	169
Gross amount of recognized liabilities	2,220	1,744
Overnight and Continuous [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements	1,995	1,575
Securities loaned	225	169
Gross amount of recognized liabilities	2,220	1,744
U.S. Treasury and Agencies [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements	429	378
U.S. Treasury and Agencies [Member] | Overnight and Continuous [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements	429	378
Residential Mortgage-Backed Securities [Member] | Agency [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements	969	551
Residential Mortgage-Backed Securities [Member] | Overnight and Continuous [Member] | Agency [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements	969	551
Corporate Debt Securities [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements	597	646
Securities loaned	225	169
Corporate Debt Securities [Member] | Overnight and Continuous [Member]
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements	597	646
Securities loaned	$ 225	$ 169

XML

Netting Arrangements for Certain Financial Instruments and Securities Financing Activities - Information on Company's Accounting Netting Adjustments and Items Not Offset in Consolidated Balance Sheet Assets But Available for Offset in Event of Default (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Offsetting [Abstract]
Derivative assets Gross Recognized Assets	$ 5,359	$ 3,830
Reverse repurchase agreements Gross Recognized Assets	513	359
Securities borrowed Gross Recognized Assets	1,657	1,868
Total Gross Recognized Assets	7,529	6,057
Derivative assets Gross amounts assets offset in consolidated balance sheet	(3,503)	(1,609)
Total Gross amounts assets offset in consolidated balance sheet	(3,503)	(1,609)
Derivative assets Net Amounts Presented in the Consolidated Balance Sheet	1,856	2,221
Reverse repurchase agreements Net Amounts Presented in the Consolidated Balance Sheet	513	359
Securities borrowed Net Amounts Presented in the Consolidated Balance Sheet	1,657	1,868
Total Net Amounts Presented in the Consolidated Balance Sheet	4,026	4,448
Derivative assets Gross financial instrument asset amounts not offset in consolidated balance sheet	(175)	(142)
Reverse repurchase agreements Gross financial instrument asset amounts not offset in consolidated balance sheet	(386)	(249)
Total Gross financial instrument asset amounts not offset in consolidated balance sheet	(561)	(391)
Derivative assets Gross collateral received amounts not offset in consolidated balance sheet	(66)	(106)
Reverse repurchase agreements Gross collateral received amounts not offset in consolidated balance sheet	(127)	(110)
Securities borrowed Gross collateral received amounts not offset in consolidated balance sheet	(1,609)	(1,818)
Total Gross collateral received amounts not offset in consolidated balance sheet	(1,802)	(2,034)
Derivative assets Net Amount	1,615	1,973
Securities borrowed Net Amount	48	50
Total Net Amount Assets	$ 1,663	$ 2,023

XML

Netting Arrangements for Certain Financial Instruments and Securities Financing Activities - Information on Company's Accounting Netting Adjustments and Items Not Offset in Consolidated Balance Sheet Assets But Available for Offset in Event of Default (Parenthetical) (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Offsetting [Abstract]
Cash collateral netted against derivative assets	$ 2,000	$ 528
Derivative assets not subject to netting arrangements	$ 30	$ 57

XML

Netting Arrangements for Certain Financial Instruments and Securities Financing Activities - Information on Company's Accounting Netting Adjustments and Items Not Offset in Consolidated Balance Sheet Liabilities But Available for Offset in Event of Default (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Offsetting [Abstract]
Derivative liabilities Gross recognized liabilities	$ 6,771	$ 2,761
Repurchase agreements Gross recognized liabilities	1,995	1,575
Securities loaned Gross recognized liabilities	225	169
Total Gross recognized liabilities	8,991	4,505
Derivative liabilities Gross amounts liabilities offset in consolidated balance sheet	(2,639)	(1,589)
Total Gross amounts liabilities offset in consolidated balance sheet	(2,639)	(1,589)
Derivative liabilities Net amounts liabilities presented in consolidated balance sheet	4,132	1,172
Repurchase agreements Net amounts liabilities presented in consolidated balance sheet	1,995	1,575
Securities loaned Net amounts liabilities presented in consolidated balance sheet	225	169
Total Net amounts liabilities presented in consolidated balance sheet	6,352	2,916
Derivative liabilities Gross financial instrument liability amounts not offset in consolidated balance sheet	(175)	(142)
Repurchase agreements Gross financial instrument liability amounts not offset in consolidated balance sheet	(386)	(249)
Total Gross financial instrument liability amounts not offset in consolidated balance sheet	(561)	(391)
Repurchase agreements Gross collateral pledged amounts not offset in consolidated balance sheet	(1,609)	(1,326)
Securities loaned Gross collateral pledged amounts not offset in consolidated balance sheet	(223)	(167)
Total Gross collateral pledged amounts not offset in consolidated balance sheet	(1,832)	(1,493)
Derivative liabilities Net Amount	3,957	1,030
Securities loaned Net Amount	2	2
Total Net Amount Liabilities	$ 3,959	$ 1,032

XML

Netting Arrangements for Certain Financial Instruments and Securities Financing Activities - Information on Company's Accounting Netting Adjustments and Items Not Offset in Consolidated Balance Sheet Liabilities But Available for Offset in Event of Default (Parenthetical) (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Offsetting [Abstract]
Cash collateral netted against derivative liabilities	$ 1,200	$ 508
Derivative liabilities not subject to netting arrangements	$ 110	$ 137

XML

Fair Values of Assets and Liabilities - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Carrying value of unfunded commitments, deferred non-yield related loan fees and standby letters of credit	$ 486		$ 486		$ 495
Other guarantees carrying value	224		224		$ 245
Mortgage loans held for sale measured at fair value, net gain (loss)	$ (64)	$ (98)	$ 298	$ 117
Minimum [Member]
Fair Value Disclosures [Abstract]
Assumed credit valuation adjustment as percentage of derivative contract fair value			0.00%
Maximum [Member]
Fair Value Disclosures [Abstract]
Assumed credit valuation adjustment as percentage of derivative contract fair value			158.00%
Weighted Average [Member]
Fair Value Disclosures [Abstract]
Assumed credit valuation adjustment as percentage of derivative contract fair value			2.00%

XML

Fair Values of Assets and Liabilities - Valuation Assumption Ranges for MSRs (Detail) - Mortgage Servicing Rights [Member]	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected prepayment	6.90%	10.30%
Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected prepayment	5.00%
Option adjusted spread	5.00%
Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected prepayment	10.00%
Option adjusted spread	11.00%
Weighted Average [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected prepayment	7.00%
Option adjusted spread	6.00%

XML

Fair Values of Assets and Liabilities - Valuation Assumption Ranges for Derivative Commitments (Detail) - Derivative Mortgage Loans Commitments [Member]	Jun. 30, 2022
Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected loan close rate	29.00%
Inherent MSR value (basis points per loan)	37.00%
Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected loan close rate	100.00%
Inherent MSR value (basis points per loan)	219.00%
Weighted Average [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Expected loan close rate	80.00%
Inherent MSR value (basis points per loan)	108.00%

XML

Fair Values of Assets and Liabilities - Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions		Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities netting		$ (2,639)		$ (1,589)
Derivative assets netting		(3,503)		(1,609)
Available-for-sale securities	[1]	98,806		132,963
Mortgage loans held for sale		2,773		6,623
Mortgage servicing rights		3,707	$ 3,432	2,953	$ 2,713	$ 2,787	$ 2,210
Asset-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities				66
Other [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		7		7
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities total		4,242		1,309
Derivative assets total		1,886		2,278
Available-for-sale securities		98,806		132,963
Mortgage loans held for sale		2,773		6,623
Mortgage servicing rights		3,707		2,953
Other assets		2,017		2,199
Total		109,189		147,016
Short-term borrowings and other liabilities		1,835		2,046
Total		6,077		3,355
Fair Value, Measurements, Recurring [Member] | Netting and Collateral One [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities netting		(2,639)		(1,589)
Derivative assets netting		(3,503)		(1,609)
Total		(3,503)		(1,609)
Total		(2,639)		(1,589)
Fair Value, Measurements, Recurring [Member] | U.S. Treasury and Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		23,767		36,609
Fair Value, Measurements, Recurring [Member] | Obligations of State and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		9,716		10,717
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		57,752		77,079
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		7,564		8,485
Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities				66
Fair Value, Measurements, Recurring [Member] | Other [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		7		7
Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets before netting				8
Available-for-sale securities		18,539		30,917
Other assets		187		278
Total		18,726		31,203
Short-term borrowings and other liabilities		190		209
Total		190		209
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury and Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		18,539		30,917
Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities before netting		3,872		2,308
Derivative assets before netting		4,555		2,490
Available-for-sale securities		80,266		102,038
Mortgage loans held for sale		2,773		6,623
Other assets		1,830		1,921
Total		89,424		113,072
Short-term borrowings and other liabilities		1,645		1,837
Total		5,517		4,145
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury and Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		5,228		5,692
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of State and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		9,715		10,716
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		57,752		77,079
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		7,564		8,485
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities				59
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Other [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		7		7
Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities before netting		3,009		590
Derivative assets before netting		834		1,389
Available-for-sale securities		1		8
Mortgage servicing rights		3,707		2,953
Total		4,542		4,350
Total		3,009		590
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of State and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities		$ 1		1
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Asset-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities				$ 7

[1] Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral.

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Fair Values of Assets and Liabilities - Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Equity investments without readily determinable fair values	$ 80	$ 79

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Fair Values of Assets and Liabilities - Changes in Fair Value for All Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Mortgage Servicing Rights [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning of Period Balance	$ 3,432	$ 2,787	$ 2,953	$ 2,210
Net Gains (Losses) Included in Net Income	170	(379)	408	(137)
Purchases	3	11	6	27
Sales		1	1	1
Issuances	102	293	339	612
End of Period Balance	3,707	2,713	3,707	2,713
Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period	170	(379)	408	(137)
Available-for-Sale Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning of Period Balance	8	8	8	8
Net Gains (Losses) Included in Net Income	(3)		(3)
Net Gains (Losses) Included in Other Comprehensive Income (Loss)		1		1
Sales	(4)		(4)
End of Period Balance	1	9	1	9
Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period		1		1
Available-for-Sale Securities [Member] | Obligations of State and Political Subdivisions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning of Period Balance	1	1	1	1
End of Period Balance	1	1	1	1
Derivative [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning of Period Balance	(1,011)	1,156	799	2,326
Net Gains (Losses) Included in Net Income	(1,494)	556	(3,361)	(379)
Purchases	81	58	92	60
Sales		(1)	(1)	(1)
Settlements	249	(269)	296	(506)
End of Period Balance	(2,175)	1,500	(2,175)	1,500
Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period	(1,259)	412	(2,739)	(496)
Asset-Backed Securities [Member] | Available-for-Sale Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning of Period Balance	7	7	7	7
Net Gains (Losses) Included in Net Income	(3)		(3)
Net Gains (Losses) Included in Other Comprehensive Income (Loss)		1		1
Sales	$ (4)		$ (4)
End of Period Balance		8		8
Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period		$ 1		$ 1

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Fair Values of Assets and Liabilities - Changes in Fair Value for All Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) (Parenthetical) (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Other Noninterest Income [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net gains and (losses) on net derivative assets and liabilities included in net income	$ 1	$ 1		$ 1
Net Change in net derivative asset and liability unrealized gains (losses) relating to assets still held at end of period	1	1		1
Mortgage Banking Revenue [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net gains and (losses) on net derivative assets and liabilities included in net income	(20)	276	$ (103)	336
Net Change in net derivative asset and liability unrealized gains (losses) relating to assets still held at end of period	(3)	100	(3)	100
Commercial Products Revenue [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Net gains and (losses) on net derivative assets and liabilities included in net income	(1,500)	279	(3,300)	(716)
Net Change in net derivative asset and liability unrealized gains (losses) relating to assets still held at end of period	$ (1,300)	$ 311	$ (2,700)	$ (597)

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Fair Values of Assets and Liabilities - Adjusted Carrying Values for Assets Measured at Fair Value on Nonrecurring Basis (Detail) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans	$ 69	$ 59
Other assets	28	77
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans	69	59
Other assets	$ 28	$ 77

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Fair Values of Assets and Liabilities - Losses Recognized Related to Nonrecurring Fair Value Measurements of Individual Assets or Portfolios (Detail) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Loans [Member]
Fair Value Assets Measured On Nonrecurring Basis Losses Recognized [Line Items]
Losses recognized related to nonrecurring fair value measurements	$ 22	$ 12	$ 33	$ 43
Other Assets [Member]
Fair Value Assets Measured On Nonrecurring Basis Losses Recognized [Line Items]
Losses recognized related to nonrecurring fair value measurements	$ 10	$ 5	$ 11	$ 6

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Fair Values of Assets and Liabilities - Differences Between Aggregate Fair Value Carrying Amount of MLHFS for which Fair Value Option has been Elected and Aggregate Unpaid Principal Amount Contractually Obligated to Receive at Maturity (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Fair value carrying amount, total loans	$ 2,773	$ 6,623
Fair value carrying amount, nonaccrual loans	1	1
Fair value carrying amount, loans 90 days or more past due	1	2
Aggregate unpaid principal, total loans	2,753	6,453
Aggregate unpaid principal, nonaccrual loans	1	1
Aggregate unpaid principal, loans 90 days or more past due	1	2
Carrying amount over (under) unpaid principal, total loans	$ 20	$ 170

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Fair Values of Assets and Liabilities - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Millions	Jun. 30, 2022		Dec. 31, 2021
Financial Assets
Cash and due from banks	$ 39,124		$ 28,905
Investment securities held-to-maturity	61,503	[1]	41,858
Loans	326,537		306,304
Financial Liabilities
Long-term debt	29,408		32,125
Carrying Amount [Member]
Financial Assets
Cash and due from banks	39,124		28,905
Federal funds sold and securities purchased under resale agreements	520		359
Investment securities held-to-maturity	61,503		41,858
Loans held for sale	1,170		1,152
Loans	326,537		306,304
Other	2,391		1,521
Financial Liabilities
Time deposits	30,622		22,665
Short-term borrowings	23,128		9,750
Long-term debt	29,408		32,125
Other	3,896		3,862
Fair Value [Member]
Financial Assets
Cash and due from banks	39,124		28,905
Federal funds sold and securities purchased under resale agreements	520		359
Investment securities held-to-maturity	55,657		41,812
Loans held for sale	1,170		1,152
Loans	321,095		312,724
Other	2,391		1,521
Financial Liabilities
Time deposits	30,039		22,644
Short-term borrowings	22,789		9,646
Long-term debt	27,901		32,547
Other	3,896		3,862
Fair Value [Member] | Level 1 [Member]
Financial Assets
Cash and due from banks	39,124		28,905
Investment securities held-to-maturity	1,337
Fair Value [Member] | Level 2 [Member]
Financial Assets
Federal funds sold and securities purchased under resale agreements	520		359
Investment securities held-to-maturity	54,320		41,812
Other	1,679		630
Financial Liabilities
Time deposits	30,039		22,644
Short-term borrowings	22,789		9,646
Long-term debt	27,901		32,547
Other	1,135		1,170
Fair Value [Member] | Level 3 [Member]
Financial Assets
Loans held for sale	1,170		1,152
Loans	321,095		312,724
Other	712		891
Financial Liabilities
Other	$ 2,761		$ 2,692

[1] The weighted-average maturity of total held-to-maturity investment securities was 7.4 years at December 31, 2021, with a corresponding weighted-average yield of 1.45 percent. The weighted-average maturity of total available-for-sale investment securities was 5.5 years at December 31, 2021, with a corresponding weighted-average yield of 1.73 percent.

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Guarantees and Contingent Liabilities - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Airline Processing Arrangements [Member]
Guarantees And Contingent Liabilities (Textual) [Abstract]
Value of airline tickets purchased to deliver at future date through card transactions	$ 9,100
Representation and Warranty [Member]
Guarantees And Contingent Liabilities (Textual) [Abstract]
Carrying Amount	13	$ 18
Unresolved representation and warranty claims from GSEs	35	$ 19
Escrow Deposits Letters of Credit Indemnities [Member] | Airline Processing Arrangements [Member]
Guarantees And Contingent Liabilities (Textual) [Abstract]
Collateral Held	1,200
Merchant Escrow Deposits [Member] | Airline Processing Arrangements [Member]
Guarantees And Contingent Liabilities (Textual) [Abstract]
Carrying Amount	$ 100

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Guarantees and Contingent Liabilities - Summary of Other Guarantees and Contingent Liabilities (Detail) $ in Millions	Jun. 30, 2022 USD ($)
Standby Letters of Credit [Member]
Guarantor Obligations [Line Items]
Carrying Amount	$ 55
Maximum Potential Future Payments	9,844
Third Party Borrowing Arrangements [Member]
Guarantor Obligations [Line Items]
Maximum Potential Future Payments	7
Securities Lending Indemnifications [Member]
Guarantor Obligations [Line Items]
Collateral Held	7,822
Maximum Potential Future Payments	7,461
Asset Sales [Member]
Guarantor Obligations [Line Items]
Carrying Amount	85
Maximum Potential Future Payments	7,629	[1]
Merchant Processing [Member]
Guarantor Obligations [Line Items]
Collateral Held	1,415
Carrying Amount	118
Maximum Potential Future Payments	141,453
Tender Option Bond Program Guarantee [Member]
Guarantor Obligations [Line Items]
Collateral Held	1,521
Maximum Potential Future Payments	1,489
Other Guarantees [Member]
Guarantor Obligations [Line Items]
Carrying Amount	21
Maximum Potential Future Payments	$ 1,343

[1] The maximum potential future payments do not include loan sales where the Company provides standard representation and warranties to the buyer against losses related to loan underwriting documentation defects that may have existed at the time of sale that generally are identified after the occurrence of a triggering event such as delinquency. For these types of loan sales, the maximum potential future payments is generally the unpaid principal balance of loans sold measured at the end of the current reporting period. Actual losses will be significantly less than the maximum exposure, as only a fraction of loans sold will have a representation and warranty breach, and any losses on repurchase would generally be mitigated by any collateral held against the loans.

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Business Segments - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Lease revenue	$ 188	$ 238	$ 392	$ 466
Payment Services [Member]
Rewards and Rebate Costs and Certain Partner Payments Included in Noninterest Income	772	633	1,400	1,200
Revenue generated from certain contracts with customers included in non-interest income	$ 2,000	$ 1,900	$ 3,900	$ 3,600

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Business Segments - Business Segment Results (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Segment Reporting Information [Line Items]
Noninterest income	$ 2,548	$ 2,619	$ 4,944	$ 5,000
Provision for credit losses	311	(170)	423	(997)
Net income	1,534	1,988	3,092	4,273
Net (income) loss attributable to noncontrolling interests	(3)	(6)	(4)	(11)
Net income attributable to U.S. Bancorp	1,531	1,982	3,088	4,262
Corporate and Commercial Banking [Member]
Segment Reporting Information [Line Items]
Net interest income (taxable-equivalent basis)	784	726	1,523	1,448
Noninterest income	272	265	517	533
Total income	1,056	991	2,040	1,981
Noninterest expense	453	433	878	853
Income (loss) before provision and income taxes	603	558	1,162	1,128
Provision for credit losses	100	0	104	(46)
Income (loss) before income taxes	503	558	1,058	1,174
Income taxes and taxable-equivalent adjustment	126	140	265	294
Net income	377	418	793	880
Net (income) loss attributable to noncontrolling interests	0	0	0	0
Net income attributable to U.S. Bancorp	377	418	793	880
Loans	123,210	102,275	119,557	102,201
Other earning assets	4,161	4,409	4,416	4,364
Goodwill	1,912	1,647	1,912	1,647
Other intangible assets	4	5	4	5
Assets	137,773	114,186	132,856	114,229
Noninterest-bearing deposits	58,266	60,696	60,298	58,524
Interest-bearing deposits	93,678	70,019	90,336	70,943
Total deposits	151,944	130,715	150,634	129,467
Total U.S. Bancorp shareholders' equity	13,989	13,816	13,859	14,092
Consumer and Business Banking [Member]
Segment Reporting Information [Line Items]
Net interest income (taxable-equivalent basis)	1,617	1,534	3,129	3,035
Noninterest income	395	634	856	1,203
Total income	2,012	2,168	3,985	4,238
Noninterest expense	1,419	1,375	2,839	2,731
Income (loss) before provision and income taxes	593	793	1,146	1,507
Provision for credit losses	(75)	(68)	(28)	(108)
Income (loss) before income taxes	668	861	1,174	1,615
Income taxes and taxable-equivalent adjustment	167	215	294	404
Net income	501	646	880	1,211
Net (income) loss attributable to noncontrolling interests	0	0	0	0
Net income attributable to U.S. Bancorp	501	646	880	1,211
Loans	141,135	140,826	140,984	141,170
Other earning assets	2,579	8,018	3,475	9,092
Goodwill	3,244	3,476	3,252	3,476
Other intangible assets	3,634	2,828	3,406	2,661
Assets	156,132	161,695	156,770	162,803
Noninterest-bearing deposits	31,642	33,702	31,807	33,244
Interest-bearing deposits	168,486	158,164	167,279	154,450
Total deposits	200,128	191,866	199,086	187,694
Total U.S. Bancorp shareholders' equity	12,366	12,337	12,311	12,407
Wealth Management and Investment Services [Member]
Segment Reporting Information [Line Items]
Net interest income (taxable-equivalent basis)	352	246	627	514
Noninterest income	652	549	1,248	1,080
Total income	1,004	795	1,875	1,594
Noninterest expense	581	521	1,174	1,020
Income (loss) before provision and income taxes	423	274	701	574
Provision for credit losses	(4)	(4)	4	1
Income (loss) before income taxes	427	278	697	573
Income taxes and taxable-equivalent adjustment	107	70	175	144
Net income	320	208	522	429
Net (income) loss attributable to noncontrolling interests	0	0	0	0
Net income attributable to U.S. Bancorp	320	208	522	429
Loans	22,320	17,442	21,521	17,147
Other earning assets	251	237	255	258
Goodwill	1,718	1,618	1,739	1,618
Other intangible assets	300	84	283	63
Assets	25,786	20,470	25,124	20,297
Noninterest-bearing deposits	25,019	23,288	26,204	22,339
Interest-bearing deposits	71,759	73,347	71,024	78,489
Total deposits	96,778	96,635	97,228	100,828
Total U.S. Bancorp shareholders' equity	3,618	3,089	3,607	3,062
Payments Services [Member]
Segment Reporting Information [Line Items]
Net interest income (taxable-equivalent basis)	619	595	1,241	1,224
Noninterest income	994	913	1,852	1,698
Total income	1,613	1,508	3,093	2,922
Noninterest expense	871	829	1,726	1,627
Income (loss) before provision and income taxes	742	679	1,367	1,295
Provision for credit losses	221	91	351	50
Income (loss) before income taxes	521	588	1,016	1,245
Income taxes and taxable-equivalent adjustment	130	147	254	311
Net income	391	441	762	934
Net (income) loss attributable to noncontrolling interests	0	0	0	0
Net income attributable to U.S. Bancorp	391	441	762	934
Loans	33,854	30,030	32,802	29,831
Other earning assets	1,023	5	1,023	5
Goodwill	3,318	3,176	3,322	3,175
Other intangible assets	438	518	450	530
Assets	41,054	35,618	39,803	35,356
Noninterest-bearing deposits	3,396	5,030	3,534	5,146
Interest-bearing deposits	167	141	164	137
Total deposits	3,563	5,171	3,698	5,283
Total U.S. Bancorp shareholders' equity	8,115	7,413	8,067	7,535
Treasury and Corporate Support [Member]
Segment Reporting Information [Line Items]
Net interest income (taxable-equivalent basis)	92	63	144	32
Noninterest income	235	258	471	486
Total income	327	321	615	518
Noninterest expense	400	229	609	535
Income (loss) before provision and income taxes	(73)	92	6	(17)
Provision for credit losses	69	(189)	(8)	(894)
Income (loss) before income taxes	(142)	281	14	877
Income taxes and taxable-equivalent adjustment	(87)	6	(121)	58
Net income	(55)	275	135	819
Net (income) loss attributable to noncontrolling interests	(3)	(6)	(4)	(11)
Net income attributable to U.S. Bancorp	(58)	269	131	808
Loans	3,668	3,711	3,744	3,789
Other earning assets	204,560	193,798	205,541	191,382
Goodwill	0	0	0	0
Other intangible assets	0	0	0	0
Assets	219,166	219,396	224,110	217,372
Noninterest-bearing deposits	2,504	2,581	2,532	2,591
Interest-bearing deposits	1,599	2,242	2,174	1,932
Total deposits	4,103	4,823	4,706	4,523
Total U.S. Bancorp shareholders' equity	11,078	16,307	13,460	15,750
Consolidated Company [Member]
Segment Reporting Information [Line Items]
Net interest income (taxable-equivalent basis)	3,464	3,164	6,664	6,253
Noninterest income	2,548	2,619	4,944	5,000
Total income	6,012	5,783	11,608	11,253
Noninterest expense	3,724	3,387	7,226	6,766
Income (loss) before provision and income taxes	2,288	2,396	4,382	4,487
Provision for credit losses	311	(170)	423	(997)
Income (loss) before income taxes	1,977	2,566	3,959	5,484
Income taxes and taxable-equivalent adjustment	443	578	867	1,211
Net income	1,534	1,988	3,092	4,273
Net (income) loss attributable to noncontrolling interests	(3)	(6)	(4)	(11)
Net income attributable to U.S. Bancorp	1,531	1,982	3,088	4,262
Loans	324,187	294,284	318,608	294,138
Other earning assets	212,574	206,467	214,710	205,101
Goodwill	10,192	9,917	10,225	9,916
Other intangible assets	4,376	3,435	4,143	3,259
Assets	579,911	551,365	578,663	550,057
Noninterest-bearing deposits	120,827	125,297	124,375	121,844
Interest-bearing deposits	335,689	303,913	330,977	305,951
Total deposits	456,516	429,210	455,352	427,795
Total U.S. Bancorp shareholders' equity	$ 49,166	$ 52,962	$ 51,304	$ 52,846