3Q26 Key Financial Data | |||
PROFITABILITY METRICS | 3Q26 | 2Q26 | 3Q25 |
Return on average assets (%) | 1.25 | 1.26 | 1.17 |
Return on average common equity (%) | 13.6 | 14.0 | 13.5 |
Return on tangible common equity (%)(a) | 18.5 | 18.7 | 18.6 |
Net interest margin (%) | 2.84 | 2.79 | 2.75 |
Efficiency ratio (%)(a) | 55.9 | 57.1 | 57.2 |
INCOME STATEMENT(b) | 3Q26 | 2Q26 | 3Q25 |
Net interest income (taxable-equivalent basis) | $4,490 | $4,387 | $4,251 |
Noninterest income | $3,480 | $3,325 | $3,078 |
Noninterest expense | $4,493 | $4,428 | $4,197 |
Net income attributable to U.S. Bancorp | $2,202 | $2,177 | $2,001 |
Diluted earnings per common share | $1.34 | $1.35 | $1.22 |
Dividends declared per common share | $.54 | $.52 | $.52 |
BALANCE SHEET(b) | 3Q26 | 2Q26 | 3Q25 |
Average total loans | $409,548 | $405,481 | $379,152 |
Average total deposits | $526,602 | $515,080 | $511,782 |
Net charge-off ratio (%) | .51 | .53 | .56 |
Book value per common share (period end) | $38.27 | $38.91 | $36.33 |
Tangible book value per common share (period end)(a) | $29.34 | $30.04 | $27.84 |
Basel III standardized CET1 (%)(c) | 10.8 | 10.8 | 10.9 |
| |||
3Q26 Financial Highlights
Record net revenue of $7,970 million, year-
over-year increases of 5.6% in net interest income and 14.9% in fee revenue
Net income of $2,202 million, an increase of 10.0% year-over-year
Diluted earnings per common share of
$1.34, an increase of 9.8% year-over-year
Positive operating leverage of 240 basis points from the prior year quarter
Return on average assets of 1.25% and efficiency ratio of 55.9%, both improved on a year-over-year basis
Net interest margin of 2.84%, an increase of 9 basis points on a year-over-year basis
CET1 capital ratio of 10.8% at September 30, 2026
Average total deposits increase of 2.9% on a year-over-year basis and 2.2% on a linked quarter basis
Average total loans increase of 8.0% on a year-over-year basis and 1.0% on a linked quarter basis
CEO Commentary
"We delivered strong third quarter results. Record net revenue of $8.0 billion drove diluted earnings per share of $1.34, up 10% year-over-year, a return on tangible common equity of 18.5%, and an efficiency ratio of 55.9%. The net charge-off ratio improved to 51 basis points. Our exceptional business mix and increasingly strong operating discipline helped us deliver high returns, productivity, and prudent risk management while strengthening revenue growth. We reported a full quarter of BTIG results, which drove an increase of 69.3% year-over-year in capital markets revenue. Our Payments transformation gained momentum and delivered combined revenue growth of 6.5% year-over-year. We were pleased to report another quarter of record consumer deposits and launch major initiatives to expand our reach in the small business segment as we onboarded a strategic small business credit card relationship, launched Business Essentials, an innovative suite of new products, and established new banker teams in expansion markets.
These results reflect strong execution against our strategic priorities and better interconnectivity across our organization. We remain focused on bringing innovative solutions to our clients, investing in our business, creating a culture of high-performance and delivering exceptional long-term value for our shareholders. On behalf of all of us at U.S. Bank, I want to thank our clients and shareholders for their continued trust and partnership."
- Gunjan Kedia, Chairman and CEO, U.S. Bancorp
Business and Other Highlights
U.S. Bank launches USBDC Stablecoin
U.S. Bank has successfully completed a live pilot transaction using USBDC, its proprietary U.S. dollar-backed stablecoin, for a cross-border payment between U.S. Bank entities in North America and Europe, demonstrating the potential for 24/7 transactions. Conducted on the Stellar blockchain, the pilot showed the bank can move value on-chain while maintaining integration with its existing finance, risk, compliance and operations infrastructure. The transaction also validated U.S. Bank's internally developed Digital Asset Platform and evaluated key capabilities, including minting, payment redemption, freezing and clawbacks, managing and moving tokenized assets, and creating a foundation for issuing. Looking ahead,
U.S. Bank is exploring applications including liquidity management, collateral mobility and cross-border treasury operations, with the initiative representing another step in its broader digital asset strategy to use blockchain technology to improve efficiency, transparency and settlement speed while maintaining the safety, security and reliability expected by clients.
U.S. Bank launches new credit cards for small businesses
U.S. Bank has launched two new small-business credit cards, Business Essentials and Business Essentials Plus, offering unlimited 2% cash back on eligible purchases and additional rewards for customers with qualifying business checking balances. Business Essentials has no annual fee and can earn up to 2.5% total cash back, while the $295-annual-fee Plus card can earn up to 3.5% and automatically provides 5% cash back on the cardholder's top spending category, subject to an annual limit. Both cards include tools designed to simplify expense management, including Spend Management and ExtendPay, while new cardholders can qualify for cash-back welcome offers of $500 or $1,000, depending on the card.
U.S. Bank is supporting the launch with a new advertising campaign featuring entrepreneur and actress Jessica Alba as the spokesperson for both cards, emphasizing its broader strategy of building deeper relationships with small-business owners through integrated banking, payments and expense-management solutions.
INCOME STATEMENT HIGHLIGHTS | ||||||||
($ in millions, except per share data) | ||||||||
Percent Change | ||||||||
3Q | 2Q | 3Q | 3Q26 vs 3Q26 vs | YTD | YTD | Percent | ||
2026 | 2026 | 2025 | 2Q26 3Q25 | 2026 | 2025 | Change | ||
Net interest income | $4,468 | $4,361 | $4,222 | 2.5 | 5.8 | $13,092 | $12,365 | 5.9 |
Taxable-equivalent adjustment | 22 | 26 | 29 | (15.4) | (24.1) | 76 | 88 | (13.6) |
Net interest income (taxable-equivalent basis) | 4,490 | 4,387 | 4,251 | 2.3 | 5.6 | 13,168 | 12,453 | 5.7 |
Noninterest income | 3,480 | 3,325 | 3,078 | 4.7 | 13.1 | 9,802 | 8,838 | 10.9 |
Total net revenue | 7,970 | 7,712 | 7,329 | 3.3 | 8.7 | 22,970 | 21,291 | 7.9 |
Noninterest expense | 4,493 | 4,428 | 4,197 | 1.5 | 7.1 | 13,186 | 12,610 | 4.6 |
Income before provision and income taxes | 3,477 | 3,284 | 3,132 | 5.9 | 11.0 | 9,784 | 8,681 | 12.7 |
Provision for credit losses | 654 | 538 | 571 | 21.6 | 14.5 | 1,768 | 1,609 | 9.9 |
Income before taxes | 2,823 | 2,746 | 2,561 | 2.8 | 10.2 | 8,016 | 7,072 | 13.3 |
Income taxes and taxable-equivalent adjustment | 615 | 563 | 553 | 9.2 | 11.2 | 1,675 | 1,527 | 9.7 |
Net income | 2,208 | 2,183 | 2,008 | 1.1 | 10.0 | 6,341 | 5,545 | 14.4 |
Net (income) loss attributable to noncontrolling interests | (6) | (6) | (7) | - | 14.3 | (17) | (20) | 15.0 |
Net income attributable to U.S. Bancorp | $2,202 | $2,177 | $2,001 | 1.1 | 10.0 | $6,324 | $5,525 | 14.5 |
Net income applicable to U.S. Bancorp common shareholders | $2,095 | $2,098 | $1,893 | (.1) | 10.7 | $6,034 | $5,229 | 15.4 |
Diluted earnings per common share | $1.34 | $1.35 | $1.22 | (.7) | 9.8 | $3.88 | $3.35 | 15.8 |
Net income attributable to U.S. Bancorp was $2,202 million for the third quarter of 2026, $201 million higher than the third quarter of 2025 and $25 million higher than the second quarter of 2026. Diluted earnings per common share was $1.34 in the third quarter of 2026, compared with $1.22 in the third quarter of 2025 and $1.35 in the second quarter of 2026.
The year-over-year increase in net income attributable to U.S. Bancorp was driven by higher total net revenue, partially offset by higher noninterest expense and higher provision for credit losses. Net interest income increased 5.6 percent on a taxable-equivalent basis, primarily due to loan growth, the impact of the small business credit card portfolio purchase and benefits from fixed asset repricing, while net interest margin increased to 2.84 percent from 2.75 percent. Noninterest income increased 13.1 percent, reflecting higher capital markets revenue including the impact of the BTIG acquisition, higher trust and investment management fees, and higher corporate payment and treasury management revenue. Noninterest expense increased 7.1 percent primarily due to the impact of the BTIG acquisition, as well as higher compensation and employee benefits expense, higher technology and communications expense, and increased marketing and business development expense. The provision for credit losses increased 14.5 percent, reflecting the impact of the small business credit card portfolio purchase, partially offset by improvement in the economic outlook and favorable credit performance.
Compared with the second quarter of 2026, net income attributable to U.S. Bancorp increased primarily due to higher total net revenue, partially offset by higher noninterest expense and higher provision for credit losses. Net interest income increased 2.3 percent on a taxable-equivalent basis, primarily driven by benefits from the small business credit card portfolio purchase, fixed asset repricing and the impact of higher interest rates, while net interest margin increased to 2.84 percent from 2.79 percent.
Noninterest income increased 4.7 percent, reflecting higher capital markets revenue due to the BTIG acquisition, higher trust and investment management fees and higher corporate payment and treasury management revenue, partially offset by lower merchant processing services revenue. Noninterest expense increased 1.5 percent, reflecting higher compensation and employee benefits expense primarily due to a full quarter of BTIG expenses in the third quarter, along with higher technology and communications expense, partially offset by a decrease in other noninterest expense. The provision for credit losses increased 21.6 percent, reflecting the impact of the small business credit card portfolio purchase, partially offset by improvement in the economic outlook and favorable credit performance.
NET INTEREST INCOME | |||||||
(Taxable-equivalent basis; $ in millions) | 3Q 2026 | 2Q 2026 | 3Q 2025 | Change 3Q26 vs 3Q26 vs 2Q26 3Q25 | YTD 2026 | YTD 2025 | Change |
Components of net interest income
Income on earning assets | $ 7,796 | $ 7,624 | $ 7,831 | $ 172 | $ (35) | $ 22,855 | $ 23,010 | $ (155) | ||||||||
Expense on interest-bearing liabilities | 3,306 | 3,237 | 3,580 | 69 | (274) | 9,687 | 10,557 | (870) | ||||||||
Net interest income | $ 4,490 | $ 4,387 | $ 4,251 | $ 103 | $ 239 | $ 13,168 | $ 12,453 | $ 715 | ||||||||
Average yields and rates paid Earning assets yield | 4.92 | % | 4.86 | % | 5.03 | % | .06 | % | (.11) | % | 4.87 | % | 5.01 | % | (.14) | % |
Rate paid on interest-bearing liabilities | 2.53 | 2.50 | 2.78 | .03 | (.25) | 2.50 | 2.78 | (.28) | ||||||||
Gross interest margin | 2.39 | % | 2.36 | % | 2.25 | % | .03 | % | .14 | % | 2.37 | % | 2.23 | % | .14 | % |
Net interest margin | 2.84 | % | 2.79 | % | 2.75 | % | .05 | % | .09 | % | 2.80 | % | 2.71 | % | .09 | % |
Average balances Investment securities(a) | $166,350 | $170,528 | $173,423 | $ (4,178) | $ (7,073) | $ 169,431 | $ 172,489 | $ (3,058) | ||||||||
Loans held for sale | 2,681 | 2,783 | 2,253 | (102) | 428 | 2,598 | 2,975 | (377) | ||||||||
Loans | 409,548 | 405,481 | 379,152 | 4,067 | 30,396 | 402,922 | 378,903 | 24,019 | ||||||||
Interest-bearing deposits with banks | 35,037 | 32,450 | 47,822 | 2,587 | (12,785) | 35,433 | 44,384 | (8,951) | ||||||||
Other earning assets | 17,168 | 17,759 | 14,867 | (591) | 2,301 | 17,623 | 14,972 | 2,651 | ||||||||
Earning assets | 630,784 | 629,001 | 617,517 | 1,783 | 13,267 | 628,007 | 613,723 | 14,284 | ||||||||
Interest-bearing liabilities | 518,927 | 519,910 | 510,919 | (983) | 8,008 | 518,151 | 507,978 | 10,173 | ||||||||
(a) Excludes unrealized gain (loss) |
Net interest income on a taxable-equivalent basis was $4,490 million in the third quarter of 2026, an increase of $239 million (5.6 percent) compared with the third quarter of 2025. The increase primarily reflected loan growth, the impact of the small business credit card portfolio purchase and benefits from fixed asset repricing. Average earning assets were $13.3 billion (2.1 percent) higher than the third quarter of 2025, reflecting an increase of $30.4 billion (8.0 percent) in average loans, partially offset by a decrease of $12.8 billion (26.7 percent) in average interest-bearing deposits with banks and a decrease of $7.1 billion (4.1 percent) in average investment securities, reflecting tactical balance sheet management actions.
On a linked quarter basis, net interest income on a taxable-equivalent basis increased $103 million (2.3 percent) primarily driven by benefits from the small business credit card portfolio purchase, fixed asset repricing and the impact of higher interest rates. Average earning assets were $1.8 billion (0.3 percent) higher than the prior quarter, reflecting increases of $4.1 billion (1.0 percent) in average loans and $2.6 billion (8.0 percent) in average interest-bearing deposits with banks, partially offset by a decrease of $4.2 billion (2.5 percent) in average investment securities.
Net interest margin was 2.84 percent in the third quarter of 2026, compared with 2.75 percent in the third quarter of 2025 and
2.79 percent in the second quarter of 2026. The increase from the prior year reflected benefits from fixed asset repricing and improved asset mix. The increase from the linked quarter was driven by the benefits from fixed asset repricing along with impacts of the small business credit card portfolio purchase.
AVERAGE LOANS | |||||||||
($ in millions) | Percent | Change | |||||||
3Q 2026 | 2Q 2026 | 3Q 2025 | 3Q26 vs 2Q26 | 3Q26 vs 3Q25 | YTD 2026 | YTD 2025 | Percent Change | ||
Commercial | $150,917 | $151,114 | $134,106 | (.1) | 12.5 | $148,577 | $131,679 | 12.8 | |
Lease financing | 4,443 | 4,459 | 4,250 | (.4) | 4.5 | 4,446 | 4,220 | 5.4 | |
Total commercial | 155,360 | 155,573 | 138,356 | (.1) | 12.3 | 153,023 | 135,899 | 12.6 | |
Commercial mortgages | 42,988 | 41,840 | 38,384 | 2.7 | 12.0 | 41,610 | 38,400 | 8.4 | |
Construction and development | 10,003 | 9,417 | 9,862 | 6.2 | 1.4 | 9,622 | 10,132 | (5.0) | |
Total commercial real estate | 52,991 | 51,257 | 48,246 | 3.4 | 9.8 | 51,232 | 48,532 | 5.6 | |
Residential mortgages | 116,886 | 117,196 | 114,780 | (.3) | 1.8 | 116,925 | 116,398 | .5 | |
Credit card | 40,222 | 38,403 | 36,079 | 4.7 | 11.5 | 38,666 | 35,537 | 8.8 | |
Retail leasing | 4,311 | 3,746 | 3,718 | 15.1 | 15.9 | 3,864 | 3,858 | .2 | |
Home equity and second mortgages | 14,210 | 14,055 | 13,790 | 1.1 | 3.0 | 14,080 | 13,671 | 3.0 | |
Other | 25,568 | 25,251 | 24,183 | 1.3 | 5.7 | 25,132 | 25,008 | .5 | |
Total other retail | 44,089 | 43,052 | 41,691 | 2.4 | 5.8 | 43,076 | 42,537 | 1.3 | |
Total loans | $409,548 | $405,481 | $379,152 | 1.0 | 8.0 | $402,922 | $378,903 | 6.3 | |
Average total loans for the third quarter of 2026 increased $30.4 billion (8.0 percent) compared with the third quarter of 2025. The increase was driven by growth in total commercial loans, commercial real estate loans and credit card loans. Growth in total commercial loans reflected higher corporate loans and loans to financial institutions. Growth in total commercial real estate loans was primarily driven by commercial mortgage originations, while credit card loan growth reflected the purchase of a small business credit card portfolio in the third quarter of 2026, along with higher sales volumes.
Compared with the second quarter of 2026, average total loans increased $4.1 billion (1.0 percent), driven by growth in credit card loans, commercial real estate loans and other retail loans. Growth in credit card loans included the impact of the small business credit card portfolio purchase, while commercial real estate loan growth was primarily due to commercial mortgage originations. Growth in other retail loans was primarily driven by higher retail leasing balances.
AVERAGE DEPOSITS | ||||||
($ in millions) | 3Q 2026 | 2Q 2026 | 3Q 2025 | Percent Change 3Q26 vs 3Q26 vs 2Q26 3Q25 | YTD 2026 | YTD Percent 2025 Change |
Noninterest-bearing deposits | $80,966 | $80,611 | $79,890 | .4 | 1.3 | $80,736 | $79,568 | 1.5 |
Interest-bearing savings deposits Interest checking | 134,607 | 132,358 | 131,281 | 1.7 | 2.5 | 132,536 | 129,531 | 2.3 |
Money market savings | 186,100 | 181,978 | 181,063 | 2.3 | 2.8 | 185,678 | 184,478 | .7 |
Savings accounts | 78,976 | 73,709 | 62,599 | 7.1 | 26.2 | 73,703 | 57,059 | 29.2 |
Total savings deposits | 399,683 | 388,045 | 374,943 | 3.0 | 6.6 | 391,917 | 371,068 | 5.6 |
Time deposits | 45,953 | 46,424 | 56,949 | (1.0) | (19.3) | 46,323 | 56,451 | (17.9) |
Total interest-bearing deposits | 445,636 | 434,469 | 431,892 | 2.6 | 3.2 | 438,240 | 427,519 | 2.5 |
Total deposits | $526,602 | $515,080 | $511,782 | 2.2 | 2.9 | $518,976 | $507,087 | 2.3 |
Average total deposits in the third quarter of 2026 increased $14.8 billion (2.9 percent) compared with the third quarter of 2025. Average total interest-bearing deposits increased, driven by growth in Consumer and Business Banking savings accounts and Wealth, Corporate, Commercial and Institutional Banking money market accounts, partially offset by lower time deposit balances in Treasury and Corporate Support. Time deposit balances are managed as an alternative funding source based on relative pricing and liquidity considerations.
Compared with the second quarter of 2026, average total deposits increased $11.5 billion (2.2 percent), driven by growth in Consumer and Business Banking savings accounts and Wealth, Corporate, Commercial and Institutional Banking money market accounts.
NONINTEREST INCOME | ||||||
($ in millions) | 3Q 2026 | 2Q 2026 | Percent Change | YTD 2026 | YTD 2025 | Percent Change |
3Q 3Q26 vs 3Q26 vs 2025 2Q26 3Q25 | ||||||
Card revenue | $440 | $435 | $415 | 1.1 | 6.0 | $1,266 | $1,202 | 5.3 |
Corporate payment and treasury management revenue | 457 | 440 | 407 | 3.9 | 12.3 | 1,305 | 1,228 | 6.3 |
Merchant processing services | 461 | 485 | 463 | (4.9) | (.4) | 1,382 | 1,352 | 2.2 |
Trust and investment management fees | 802 | 785 | 730 | 2.2 | 9.9 | 2,332 | 2,113 | 10.4 |
Lending and deposit-related fees | 308 | 308 | 290 | - | 6.2 | 910 | 833 | 9.2 |
Capital markets revenue | 640 | 512 | 378 | 25.0 | 69.3 | 1,529 | 985 | 55.2 |
Mortgage banking revenue | 155 | 169 | 180 | (8.3) | (13.9) | 485 | 515 | (5.8) |
Investment products fees | 116 | 102 | 97 | 13.7 | 19.6 | 315 | 274 | 15.0 |
Other | 166 | 138 | 125 | 20.3 | 32.8 | 427 | 400 | 6.8 |
Total fee revenue | 3,545 | 3,374 | 3,085 | 5.1 | 14.9 | 9,951 | 8,902 | 11.8 |
Securities gains (losses), net | (65) | (49) | (7) | (32.7) | nm | (149) | (64) | nm |
Total noninterest income | $3,480 | $3,325 | $3,078 | 4.7 | 13.1 | $9,802 | $8,838 | 10.9 |
Third quarter noninterest income of $3,480 million increased $402 million (13.1 percent) compared with the third quarter of 2025, driven by higher capital markets revenue, trust and investment management fees, corporate payment and treasury management revenue and other revenue. Capital markets revenue increased primarily due to the contribution from BTIG, along with higher syndication and client-related derivative activity. Trust and investment management fees increased due to business growth and favorable market conditions. Corporate payment and treasury management revenue increased due to higher sales, while other revenue increased due to higher equity investment gains.
Compared with the second quarter of 2026, noninterest income increased $155 million (4.7 percent), driven by higher capital markets revenue, trust and investment management fees, corporate payment and treasury management revenue and other revenue, partially offset by lower merchant processing services revenue. Capital markets revenue increased primarily due to a full quarter of contribution from BTIG. Trust and investment management fees increased due to business growth. Corporate payment and treasury management revenue increased due to higher sales, while other revenue increased due to higher equity investment gains. Merchant processing services decreased due to seasonality.
NONINTEREST EXPENSE
($ in millions)
3Q
2026
2Q
2026
Percent Change
3Q 3Q26 vs 3Q26 vs
2Q26
3Q25
YTD
2026
YTD Percent
2025
2025 Change
Compensation and employee benefits $2,753 $2,685 $2,561 2.5 7.5 $8,066 $7,798 3.4
Net occupancy and equipment 309 303 300 2.0 3.0 916 907 1.0
Professional services 115 112 117 2.7 (1.7) 319 324 (1.5)
Marketing and business development 199 216 175 (7.9) 13.7 632 518 22.0
Technology and communications 666 601 560 10.8 18.9 1,840 1,627 13.1
Other intangibles 127 114 125 11.4 1.6 351 372 (5.6)
Other 324 397 359 (18.4) (9.7) 1,062 1,064 (.2)
Total noninterest expense $4,493 $4,428 $4,197 1.5 7.1 $13,186 $12,610 4.6
Third quarter noninterest expense was $4,493 million, an increase of $296 million (7.1 percent) compared with the third quarter of 2025. The increase reflected the impact of the BTIG acquisition, higher compensation and employee benefits expense primarily due to merit increases, higher technology and communications expense related to investments in product and technology development, and increased marketing and business development initiatives, partially offset by lower other expense.
Compared with the second quarter of 2026, noninterest expense increased $65 million (1.5 percent). The increase reflected higher compensation and employee benefits expense primarily due to a full quarter of BTIG expenses in the third quarter, and higher technology and communications expense related to investments in product and technology development, partially offset by lower other expense.
Provision for Income Taxes
The provision for income taxes for the third quarter of 2026 resulted in a tax rate of 21.8 percent on a taxable-equivalent basis (effective tax rate of 21.2 percent), compared with 21.6 percent on a taxable-equivalent basis (effective tax rate of 20.7 percent) in the third quarter of 2025, and 20.5 percent on a taxable-equivalent basis (effective tax rate of 19.7 percent) in the second quarter of 2026.
ALLOWANCE FOR CREDIT LOSSES | ||||||||||
($ in millions) | 3Q | 2Q | 1Q | 4Q | 3Q | |||||
2026 | %(a) | 2026 | %(a) | 2026 | %(a) | 2025 | %(a) | 2025 | %(a) | |
Balance, beginning of period | $7,979 | $7,977 | $7,947 | $7,897 | $7,862 | |||||
Allowance for acquired credit losses | 55 | - | - | - | - | |||||
Net charge-offs | ||||||||||
Commercial | 83 | .22 | 91 | .24 | 117 | .33 | 101 | .29 | 23 | .07 |
Lease financing | 5 | .45 | 5 | .45 | 4 | .37 | 5 | .46 | 7 | .65 |
Total commercial | 88 | .22 | 96 | .25 | 121 | .33 | 106 | .30 | 30 | .09 |
Commercial mortgages | 42 | .39 | 13 | .12 | 2 | .02 | (3) | (.03) | 103 | 1.06 |
Construction and development | - | - | - | - | (10) | (.43) | - | - | - | - |
Total commercial real estate | 42 | .31 | 13 | .10 | (8) | (.07) | (3) | (.02) | 103 | .85 |
Residential mortgages | - | - | - | - | (1) | - | (2) | (.01) | (1) | - |
Credit card | 334 | 3.29 | 367 | 3.83 | 365 | 3.96 | 358 | 3.84 | 346 | 3.80 |
Retail leasing | 16 | 1.47 | 14 | 1.50 | 18 | 2.07 | 17 | 1.89 | 17 | 1.81 |
Home equity and second mortgages | - | - | - | - | 1 | .03 | 1 | .03 | (2) | (.06) |
Other | 43 | .67 | 46 | .73 | 50 | .83 | 50 | .81 | 43 | .71 |
Total other retail | 59 | .53 | 60 | .56 | 69 | .67 | 68 | .64 | 58 | .55 |
Total net charge-offs | 523 | .51 | 536 | .53 | 546 | .56 | 527 | .54 | 536 | .56 |
Provision for credit losses(b) | 654 | 538 | 576 | 577 | 571 | |||||
Balance, end of period | $8,165 | $7,979 | $7,977 | $7,947 | $7,897 | |||||
Components | ||||||||||
Allowance for loan losses | $7,815 | $7,645 | $7,646 | $7,605 | $7,557 | |||||
Liability for unfunded credit commitments | 350 | 334 | 331 | 342 | 340 | |||||
Total allowance for credit losses | $8,165 | $7,979 | $7,977 | $7,947 | $7,897 | |||||
Gross charge-offs | $647 | $676 | $683 | $651 | $669 | |||||
Gross recoveries | $124 | $140 | $137 | $124 | $133 | |||||
Allowance for credit losses as a percentage of | ||||||||||
Period-end loans (%) | 1.97 | 1.94 | 2.00 | 2.03 | 2.06 | |||||
Nonperforming loans (%) | 636 | 612 | 536 | 514 | 490 | |||||
Nonperforming assets (%) | 617 | 593 | 522 | 500 | 477 | |||||
Annualized and calculated on average loan balances.
The third quarter of 2026 includes $135 million of provision for acquired loans.
The provision for credit losses was $654 million for the third quarter of 2026, compared with $538 million in the second quarter of 2026 and $571 million in the third quarter of 2025. The increase on a year-over-year basis was primarily driven by the impact of recording the initial provision for credit losses of $135 million related to the purchase of a small business credit card portfolio in the third quarter of 2026, partially offset by improvement in the economic outlook and favorable credit performance. The increase on a linked quarter basis was primarily driven by the impact of the small business credit card portfolio purchase, partially offset by improvement in the economic outlook and favorable credit performance. While economic conditions have shown improvement, the Company continues to monitor economic uncertainty related to interest rates, inflationary pressures, including those related to evolving geopolitical events, as well as other economic factors that may affect the financial strength of corporate and consumer borrowers.
Total net charge-offs were $523 million in the third quarter of 2026, compared with $536 million in both the second quarter of 2026 and third quarter of 2025. The net charge-off ratio in the third quarter of 2026 was 0.51 percent, compared with 0.53 percent in the second quarter of 2026 and 0.56 percent in the third quarter of 2025. The decrease in net charge-offs on a linked quarter basis was driven by lower net charge-offs on credit card loans, partially offset by higher net charge-offs on commercial real estate loans. Compared with the prior year quarter, lower net charge-offs on commercial real estate loans and credit card loans were partially offset by higher net charge-offs on commercial loans.
The allowance for credit losses was $8,165 million at September 30, 2026, compared with $7,979 million at June 30, 2026, and
$7,897 million at September 30, 2025. The increase in the allowance for credit losses compared with the linked quarter and prior year quarter was primarily due to the impacts of recording the initial provision for credit losses of $135 million and initial allowance for acquired credit losses of $55 million related to the purchase of the small business credit card portfolio, partially offset by improving credit quality and economic outlook. The allowance for credit losses represented 1.97 percent of period-end loans at September 30, 2026, and 636 percent of nonperforming loans at September 30, 2026.
Nonperforming assets were $1,324 million at September 30, 2026, compared with $1,346 million at June 30, 2026, and
$1,654 million at September 30, 2025. The decrease from the prior year quarter primarily reflected the resolution of commercial and commercial mortgage nonperforming loans. The ratio of nonperforming assets to loans and other real estate was 0.32 percent at September 30, 2026. Accruing loans 90 days or more past due were $743 million at September 30, 2026, compared with $735 million at June 30, 2026, and $840 million at September 30, 2025. The decrease in accruing loans 90 days or more past due from the prior year quarter was primarily due to the resolution of elevated prior year residential mortgage delinquencies.
DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES
(Percent)
Sep 30
2026
Jun 30
2026
Mar 31
2026
Dec 31
2025
Sep 30
2025
Delinquent loan ratios - 90 days or more past due
Commercial
.01
.01
.02
.01
.01
Commercial real estate
.01
.01
.03
.03
.04
Residential mortgages
.19
.20
.23
.25
.26
Credit card
1.10
1.13
1.29
1.27
1.26
Other retail
.10
.09
.12
.12
.12
Total loans
.18
.18
.21
.22
.22
Delinquent loan ratios - 90 days or more past due and nonperforming loans
Commercial
.28
.26
.45
.50
.53
Commercial real estate
.98
1.09
1.07
1.09
1.24
Residential mortgages
.34
.35
.36
.38
.38
Credit card
1.10
1.13
1.29
1.27
1.26
Other retail
.46
.46
.50
.51
.49
Total loans
.49
.50
.58
.61
.64
ASSET QUALITY(a)
($ in millions)
Sep 30
2026
Jun 30
2026
Mar 31
2026
Dec 31
2025
Sep 30
2025
Nonperforming loans
Commercial
$407
$377
$622
$695
$708
Lease financing
25
25
26
22
25
Total commercial
432
402
648
717
733
Commercial mortgages
490
538
488
504
558
Construction and development
28
30
34
14
21
Total commercial real estate
518
568
522
518
579
Residential mortgages
176
171
159
151
143
Credit card
-
-
-
-
-
Other retail
158
162
159
161
155
Total nonperforming loans
1,284
1,303
1,488
1,547
1,610
Other real estate
21
24
22
24
23
Other nonperforming assets
19
19
18
19
21
Total nonperforming assets
$1,324
$1,346
$1,528
$1,590
$1,654
Accruing loans 90 days or more past due
$743
$735
$847
$853
$840
Nonperforming assets to loans plus ORE (%)
.32
.33
.38
.41
.43
Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due
COMMON SHARES | |||||
(Millions) | 3Q | 2Q | 1Q | 4Q | 3Q |
2026 | 2026 | 2026 | 2025 | 2025 | |
Beginning shares outstanding | 1,558 | 1,555 | 1,555 | 1,556 | 1,558 |
Shares issued for stock incentive plans, | |||||
acquisitions and other corporate purposes | - | 6 | 5 | 2 | - |
Shares repurchased | - | (3) | (5) | (3) | (2) |
Ending shares outstanding | 1,558 | 1,558 | 1,555 | 1,555 | 1,556 |
CAPITAL POSITION | Preliminary Data | ||||
($ in millions) | Sep 30 2026 | Jun 30 2026 | Mar 31 2026 | Dec 31 2025 | Sep 30 2025 |
Total U.S. Bancorp shareholders' equity | $66,425 | $67,432 | $65,786 | $65,193 | $63,340 | |||||
Basel III Standardized Approach Common equity tier 1 capital | $55,023 | $53,575 | $52,648 | $51,665 | $50,587 | |||||
Tier 1 capital | 62,267 | 60,802 | 59,899 | 58,917 | 57,839 | |||||
Total risk-based capital | 72,844 | 71,429 | 69,163 | 68,087 | 66,820 | |||||
Common equity tier 1 capital ratio | 10.8 | % | 10.8 | % | 10.8 | % | 10.8 | % | 10.9 | % |
Tier 1 capital ratio | 12.3 | 12.2 | 12.3 | 12.3 | 12.4 | |||||
Total risk-based capital ratio | 14.3 | 14.4 | 14.2 | 14.2 | 14.4 | |||||
Leverage ratio | 9.0 | 8.9 | 8.8 | 8.7 | 8.6 | |||||
Common equity to assets | 8.5 | 8.4 | 8.4 | 8.4 | 8.1 | |||||
Tangible common equity to tangible assets(a) | 6.6 | 6.6 | 6.7 | 6.7 | 6.4 | |||||
Tangible common equity to risk-weighted assets(a) | 9.0 | 9.4 | 9.4 | 9.4 | 9.3 |
(a) See Non-GAAP Financial Measures reconciliation on page 16.
Total U.S. Bancorp shareholders' equity was $66.4 billion at September 30, 2026, compared with $67.4 billion at June 30, 2026, and $63.3 billion at September 30, 2025. The increase from the prior year quarter reflected the impacts of corporate earnings and the common shares issued as consideration for the acquisition of BTIG, partially offset by dividends paid.
All regulatory capital ratios continue to be in excess of "well-capitalized" requirements. The common equity tier 1 capital to risk-weighted assets ratio using the Basel III standardized approach was 10.8 percent at both September 30, 2026, and June 30, 2026, compared with 10.9 percent at September 30, 2025.
Investor Conference Call
On Thursday, October 15, 2026 at 8 a.m. CT, Chairman and Chief Executive Officer Gunjan Kedia and Vice Chair and Chief Financial Officer John Stern will host a conference call to review the financial results. The live conference call will be available online or by telephone. To access the webcast and presentation, visit the U.S. Bancorp website at usbank.com and click on "About us", "Investor relations", "News & events" and "Webcasts & presentations." To access the conference call from locations within the United States and Canada, please dial 888-210-4659. Participants calling from outside the United States and Canada, please dial 646-960-0383. The access code for all participants is 7269933. For those unable to participate during the live call, a replay will be available beginning at approximately 11 a.m. CT on October 15, 2026. To access the replay, please visit the U.S. Bancorp website at usbank.com and click on "About us", "Investor relations", "News & events" and "Webcasts & presentations."
About U.S. Bancorp
Headquartered in Minneapolis, U.S. Bancorp is the parent company of U.S. Bank National Association, the fifth-largest commercial bank in the United States. The company's three major business lines serve 15 million clients globally, and its team of nearly 70,000 people invest their hearts and minds to power human potential every day. Ranked 110th on the Fortune 500,
U.S. Bancorp is deeply respected for its culture and long-term stewardship and admired for its diversified business mix and product capabilities.
Forward-looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995.
This press release 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, future economic conditions and the anticipated future revenue, expenses, financial condition, asset quality, capital and liquidity levels, plans, prospects, targets, initiatives and operations 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 that could cause actual results to differ materially from those set forth in forward-looking statements, including the following risks and uncertainties:
Deterioration in general business, political and economic conditions or turbulence in domestic or global financial markets, which 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;
Changes to statutes, regulations, or regulatory policies or practices, including capital and liquidity requirements, and the enforcement and interpretation of such laws and regulations, and U.S. Bancorp's ability to address or satisfy those requirements and other requirements or conditions imposed by regulatory entities;
Changes in trade policy, including the imposition of tariffs or the impacts of retaliatory tariffs, or the effects of related litigation;
Changes in interest rates;
Increases in unemployment rates;
Deterioration in the credit quality of U.S. Bancorp's loan portfolios or in the value of the collateral securing those loans;
Changes in commercial real estate occupancy rates;
Increases in FDIC assessments, including due to bank failures;
Actions taken by governmental agencies to stabilize or reform the financial system and the effectiveness of such actions;
Turmoil and volatility in the financial services industry;
Risks related to originating and selling mortgages, including repurchase and indemnity demands, and related to U.S. Bancorp's role as a loan servicer;
Impacts of current, pending or future litigation and governmental proceedings;
Increased competitive pressure;
Changes in customer behavior and preferences and the ability to implement technological changes to respond to customer needs and meet competitive demands;
Failures or disruptions in or breaches of U.S. Bancorp's operational, technology, data security or other security systems or infrastructure, or those of third parties, including as a result of cybersecurity incidents;
Failures to safeguard personal information;
Impacts of pandemics, natural disasters, terrorist activities, civil unrest, international hostilities and geopolitical events, including those arising from conflict in the Middle East;
Impacts of supply chain disruptions, rising inflation, slower growth or a recession;
Effects of climate change and related physical and transition risks;
Failure to execute on strategic or operational plans;
Effects of mergers and acquisitions, such as the acquisition of Condor Trading LP and its subsidiaries, including BTIG, LLC, and related integration, including that the expected benefits may take longer than anticipated to achieve or may not be achieved in entirety or at all and the costs relating to the combination may be greater than expected;
Effects of critical accounting policies and judgments;
Effects of changes in or interpretations of tax laws and regulations;
Management's ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, and liquidity risk; and
The risks and uncertainties more fully discussed in the section entitled "Risk Factors" of U.S. Bancorp's Form 10-K for the year ended December 31, 2025, and subsequent filings with the Securities and Exchange Commission.
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.
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,
Tangible book value per common share, and
Return on tangible common equity.
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 and use of capital relative to other financial services companies. These capital measures are not defined in generally accepted accounting principles ("GAAP") or in banking regulations. Management believes this information helps investors assess trends in the Company's capital utilization and adequacy.
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 utilize net interest income on a taxable-equivalent basis, including the efficiency ratio, operating leverage, net interest margin, and tax rate.
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 press release in their entirety, and not to rely on any single financial measure. A table follows that shows the Company's calculation of these non-GAAP financial measures.
CONSOLIDATED STATEMENT OF INCOME | ||||
(Dollars and Shares in Millions, Except Per Share Data) (Unaudited) | Three Months September | Ended 30, | Nine Months Ended September 30, | |
2026 | 2025 | 2026 | 2025 | |
Interest Income | ||||
Loans | $5,920 | $5,688 | $17,174 | $16,769 |
Loans held for sale | 41 | 35 | 119 | 122 |
Investment securities | 1,303 | 1,392 | 3,950 | 4,055 |
Other interest income(a) | 510 | 687 | 1,536 | 1,976 |
Total interest income(a) | 7,774 | 7,802 | 22,779 | 22,922 |
Interest Expense | ||||
Deposits | 2,491 | 2,648 | 7,105 | 7,700 |
Short-term borrowings(a) | 198 | 203 | 661 | 743 |
Long-term debt | 617 | 729 | 1,921 | 2,114 |
Total interest expense(a) | 3,306 | 3,580 | 9,687 | 10,557 |
Net interest income | 4,468 | 4,222 | 13,092 | 12,365 |
Provision for credit losses | 654 | 571 | 1,768 | 1,609 |
Net interest income after provision for credit losses | 3,814 3,651 | 11,324 10,756 | ||
Noninterest Income | ||||
Card revenue | 440 415 | 1,266 1,202 | ||
Corporate payment and treasury management revenue | 457 407 | 1,305 1,228 | ||
Merchant processing services | 461 463 | 1,382 1,352 | ||
Trust and investment management fees | 802 730 | 2,332 2,113 | ||
Lending and deposit-related fees | 308 290 | 910 833 | ||
Capital markets revenue | 640 378 | 1,529 985 | ||
Mortgage banking revenue | 155 180 | 485 515 | ||
Investment products fees | 116 97 | 315 274 | ||
Securities gains (losses), net | (65) (7) | (149) (64) | ||
Other | 166 125 | 427 400 | ||
Total noninterest income | 3,480 | 3,078 | 9,802 | 8,838 |
Noninterest Expense | ||||
Compensation and employee benefits | 2,753 | 2,561 | 8,066 | 7,798 |
Net occupancy and equipment | 309 | 300 | 916 | 907 |
Professional services | 115 | 117 | 319 | 324 |
Marketing and business development | 199 | 175 | 632 | 518 |
Technology and communications | 666 | 560 | 1,840 | 1,627 |
Other intangibles | 127 | 125 | 351 | 372 |
Other | 324 | 359 | 1,062 | 1,064 |
Total noninterest expense | 4,493 | 4,197 | 13,186 | 12,610 |
Income before income taxes | 2,801 | 2,532 | 7,940 | 6,984 |
Applicable income taxes | 593 | 524 | 1,599 | 1,439 |
Net income | 2,208 2,008 | 6,341 5,545 | ||
Net (income) loss attributable to noncontrolling interests | (6) (7) | (17) (20) | ||
Net income attributable to U.S. Bancorp | $2,202 | $2,001 | $6,324 | $5,525 |
Net income applicable to U.S. Bancorp common shareholders | $2,095 | $1,893 | $6,034 | $5,229 |
Earnings per common share | $1.34 | $1.22 | $3.88 | $3.36 |
Diluted earnings per common share | $1.34 | $1.22 | $3.88 | $3.35 |
Dividends declared per common share | $.54 | $.52 | $1.58 | $1.52 |
Average common shares outstanding | 1,558 | 1,557 | 1,555 | 1,558 |
Average diluted common shares outstanding | 1,559 | 1,557 | 1,556 | 1,559 |
Presentation of interest income and interest expense related to certain repurchase and reverse repurchase transactions recorded under enforceable netting agreements are shown on a net basis for all periods shown, consistent with the presentation of the related balances on the consolidated balance sheet.
CONSOLIDATED ENDING BALANCE SHEET
(Dollars in Millions)
September 30,
December 31,
September 30,
(Unaudited)
2026
2025
2025
Assets
Cash and due from banks
$49,523
$46,890
$66,637
Investment securities
Held-to-maturity
72,923
76,170
76,931
Available-for-sale
80,228
90,838
89,065
Loans held for sale
Loans
2,426
2,538
2,490
Commercial
158,814
146,418
140,982
Commercial real estate
53,451
48,920
48,244
Residential mortgages
116,806
115,885
115,046
Credit card
41,587
38,031
36,434
Other retail
44,589
42,081
41,811
Total loans
415,247
391,335
382,517
Less allowance for loan losses
(7,815)
(7,605)
(7,557)
Net loans
407,432
383,730
374,960
Premises and equipment
3,894
3,768
3,695
Goodwill
13,232
12,635
12,634
Other intangible assets
5,310
4,904
5,152
Other assets
67,998
70,872
63,793
Total assets
$702,966
$692,345
$695,357
Liabilities and Shareholders' Equity
Deposits
Noninterest-bearing
$85,596
$84,116
$91,550
Interest-bearing
446,109
438,100
434,599
Total deposits
531,705
522,216
526,149
Short-term borrowings
21,044
17,162
15,449
Long-term debt
51,996
60,764
62,535
Other liabilities
31,333
26,552
27,426
Total liabilities
636,078
626,694
631,559
Shareholders' equity
Preferred stock
6,808
6,808
6,808
Common stock
21
21
21
Capital surplus
8,839
8,728
8,745
Retained earnings
84,503
80,906
79,742
Less treasury stock
(24,284)
(24,283)
(24,228)
Accumulated other comprehensive income (loss)
(9,462)
(6,987)
(7,748)
Total U.S. Bancorp shareholders' equity
66,425
65,193
63,340
Noncontrolling interests
463
458
458
Total equity
66,888
65,651
63,798
Total liabilities and equity
$702,966
$692,345
$695,357
NON-GAAP FINANCIAL MEASURES
September 30,
June 30,
March 31,
December 31,
September 30,
(Dollars in Millions, Unaudited)
2026
2026
2026
2025
2025
Total equity
$66,888
$67,895
$66,247
$65,651
$63,798
Preferred stock
(6,808)
(6,808)
(6,808)
(6,808)
(6,808)
Noncontrolling interests
(463)
(463)
(461)
(458)
(458)
Common equity(a)
59,617
60,624
58,978
58,385
56,532
Goodwill (net of deferred tax liability)(1)
(12,185)
(12,193)
(11,588)
(11,603)
(11,603)
Intangible assets (net of deferred tax liability), other than mortgage servicing rights
(1,713)
(1,624)
(1,429)
(1,507)
(1,605)
Tangible common equity(b)
45,719
46,807
45,961
45,275
43,324
Total assets(c)
702,966
725,918
700,998
692,345
695,357
Goodwill (net of deferred tax liability)(1)
(12,185)
(12,193)
(11,588)
(11,603)
(11,603)
Intangible assets (net of deferred tax liability), other than mortgage servicing rights
(1,713)
(1,624)
(1,429)
(1,507)
(1,605)
Tangible assets(d)
689,068
712,101
687,981
679,235
682,149
Risk-weighted assets, determined in accordance with prescribed regulatory capital
requirements effective for the Company(e)
508,174
*
496,488
487,958
480,382
465,092
Common shares outstanding(f)
1,558
1,558
1,555
1,555
1,556
Ratios *
Common equity to assets(a)/(c)
8.5%
8.4%
8.4%
8.4%
8.1%
Tangible common equity to tangible assets(b)/(d)
6.6
6.6
6.7
6.7
6.4
Tangible common equity to risk-weighted assets(b)/(e)
9.0
9.4
9.4
9.4
9.3
Tangible book value per common share(b)/(f)
$29.34
$30.04
$29.56
$29.12
$27.84
Three Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
2026
2026
2026
2025
2025
Net income applicable to U.S. Bancorp common shareholders
$2,095
$2,098
$1,841
$1,965
$1,893
Intangibles amortization (net-of-tax)
100
90
87
100
99
Net income applicable to U.S. Bancorp common shareholders, excluding intangibles
amortization
2,195
2,188
1,928
2,065
1,992
Annualized net income applicable to U.S. Bancorp common shareholders, excluding intangibles amortization(g)
8,708
8,776
7,819
8,193
7,903
Average total equity
68,214
67,327
66,315
65,048
63,101
Average preferred stock
(6,808)
(6,808)
(6,808)
(6,808)
(6,808)
Average noncontrolling interests
(463)
(462)
(458)
(458)
(458)
Average goodwill (net of deferred tax liability)(1)
(12,197)
(11,796)
(11,601)
(11,599)
(11,609)
Average intangible assets (net of deferred tax liability), other than mortgage servicing rights
(1,684)
(1,409)
(1,474)
(1,568)
(1,659)
Average tangible common equity(h)
47,062
46,852
45,974
44,615
42,567
Return on tangible common equity(g)/(h)
18.5%
18.7%
17.0%
18.4%
18.6%
Net interest income
$4,468
$4,361
$4,263
$4,284
$4,222
Taxable-equivalent adjustment(2)
22
26
28
28
29
Net interest income, on a taxable-equivalent basis
4,490
4,387
4,291
4,312
4,251
Net interest income, on a taxable-equivalent basis (as calculated above)
4,490
4,387
4,291
4,312
4,251
Noninterest income
3,480
3,325
2,997
3,053
3,078
Less: Securities gains (losses), net
(65)
(49)
(35)
3
(7)
Total net revenue, excluding net securities gains (losses)(i)
8,035
7,761
7,323
7,362
7,336
Noninterest expense(j)
4,493
4,428
4,265
4,227
4,197
Efficiency ratio(j)/(i)
55.9%
57.1%
58.2%
57.4%
57.2%
* Preliminary data. Subject to change prior to filings with applicable regulatory agencies.
Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements.
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.
NON-GAAP FINANCIAL MEASURES Three Months Ended | ||||
(Dollars in Millions, Unaudited) | September 30, 2026 | September 30, 2025 | Percent Change | |
Net interest income | $4,468 | $4,222 | ||
Taxable-equivalent adjustment(1) | 22 | 29 | ||
Net interest income, on a taxable-equivalent basis | 4,490 | 4,251 | ||
Net interest income, on a taxable-equivalent basis (as calculated above) | 4,490 | 4,251 | ||
Noninterest income | 3,480 | 3,078 | ||
Less: Securities gains (losses), net | (65) | (7) | ||
Total net revenue, excluding net securities gains (losses) | 8,035 | 7,336 | 9.5% | (a) |
Noninterest expense | 4,493 | 4,197 | 7.1% | (b) |
Operating leverage(a) - (b) | 2.4% | |||
(1) Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes.
Business Segment Schedules Third Quarter 2026WEALTH, CORPORATE, COMMERCIAL AND INSTITUTIONAL BANKING
CONSUMER AND BUSINESS BANKING PAYMENT SERVICES
TREASURY AND CORPORATE SUPPORT
BUSINESS SEGMENT FINANCIAL PERFORMANCE | Preliminary data | |||||
($ in millions) | Net Income Attributable to U.S. Bancorp 3Q 2Q 3Q 2026 2026 2025 | Percent Change 3Q26 vs 3Q26 vs 2Q26 3Q25 | Net Income Attributable to U.S. Bancorp YTD YTD Percent 2026 2025 Change | |||
Business Segment | ||||||
Wealth, Corporate, Commercial and Institutional Banking | $1,598 | $1,513 | $1,231 | 5.6 | 29.8 | $4,550 $3,597 26.5 |
Consumer and Business Banking | 633 | 593 | 593 | 6.7 | 6.7 | 1,803 1,717 5.0 |
Payment Services | 175 | 222 | 255 | (21.2) | (31.4) | 661 786 (15.9) |
Treasury and Corporate Support | (204) | (151) | (78) | (35.1) | nm | (690) (575) (20.0) |
Consolidated Company | $2,202 | $2,177 | $2,001 | 1.1 | 10.0 | $6,324 $5,525 14.5 |
Income Before Provision and Taxes | Percent Change 3Q26 vs 3Q26 vs 2Q26 3Q25 | Income Before Provision and Taxes YTD YTD Percent 2026 2025 Change | ||||
3Q 2026 | 2Q 2026 | 3Q 2025 | ||||
Wealth, Corporate, Commercial and Institutional Banking | $2,243 | $2,147 | $1,838 | 4.5 | 22.0 | $6,374 $5,213 22.3 |
Consumer and Business Banking | 916 | 869 | 853 | 5.4 | 7.4 | 2,627 2,451 7.2 |
Payment Services | 828 | 681 | 749 | 21.6 | 10.5 | 2,208 2,159 2.3 |
Treasury and Corporate Support | (510) | (413) | (308) | (23.5) | (65.6) | (1,425) (1,142) (24.8) |
Consolidated Company | $3,477 | $3,284 | $3,132 | 5.9 | 11.0 | $9,784 $8,681 12.7 |
Business Segments
The Company's major business segments are Wealth, Corporate, Commercial and Institutional Banking, Consumer and Business Banking, Payment Services, and Treasury and Corporate Support. Business segment results are derived from the Company's business unit profitability reporting systems by specifically attributing managed balance sheet assets, deposits and other liabilities and their related income or expense. Designations, assignments and allocations change from time to time as management systems are enhanced, methods of evaluating performance or product lines change or business segments are realigned to better respond to the Company's diverse customer base. During 2026, certain organization and methodology changes were made, including moving the Impact Finance business unit from the Treasury and Corporate Support business segment to the Wealth, Corporate, Commercial and Institutional Banking business segment. In addition, card revenue generated from debit cards, which was previously included in the Payment Services business segment, is now included in the Consumer and Business Banking business segment. Prior period results were recast and presented on a comparable basis.
WEALTH, CORPORATE, COMMERCIAL AND INSTITUTIONAL BANKING | Preliminary | data | ||||||
($ in millions) | 3Q 2026 | 2Q 2026 | Percent Change 3Q 3Q26 vs 3Q26 vs 2025 2Q26 3Q25 | YTD 2026 | YTD Percent 2025 Change | |||
Condensed Income Statement | ||||||||
Net interest income (taxable-equivalent basis) | $1,971 | $1,931 | $1,761 | 2.1 | 11.9 | $5,768 | $5,177 | 11.4 |
Noninterest income | 2,026 | 1,834 | 1,572 | 10.5 | 28.9 | 5,467 | 4,489 | 21.8 |
Total net revenue | 3,997 | 3,765 | 3,333 | 6.2 | 19.9 | 11,235 | 9,666 | 16.2 |
Noninterest expense | 1,754 | 1,618 | 1,495 | 8.4 | 17.3 | 4,861 | 4,453 | 9.2 |
Income before provision and taxes | 2,243 | 2,147 | 1,838 | 4.5 | 22.0 | 6,374 | 5,213 | 22.3 |
Provision for credit losses | 112 | 129 | 196 | (13.2) | (42.9) | 306 | 416 (26.4) | |
Income before income taxes | 2,131 | 2,018 | 1,642 | 5.6 | 29.8 | 6,068 | 4,797 | 26.5 |
Income taxes and taxable-equivalent adjustment | 533 | 505 | 411 | 5.5 | 29.7 | 1,518 | 1,200 | 26.5 |
Net income | 1,598 | 1,513 | 1,231 | 5.6 | 29.8 | 4,550 | 3,597 | 26.5 |
Net (income) loss attributable to noncontrolling interests | - | - | - | - | - | - | - | - |
Net income attributable to U.S. Bancorp | $1,598 | $1,513 | $1,231 | 5.6 | 29.8 | $4,550 | $3,597 | 26.5 |
Average Balance Sheet Data | ||||||||
Loans | $216,957 | $214,486 | $189,530 | 1.2 | 14.5 | $212,023 | $186,161 | 13.9 |
Other earning assets | 15,420 | 16,113 | 11,908 | (4.3) | 29.5 | 15,637 | 12,989 | 20.4 |
Goodwill | 5,439 | 5,028 | 4,826 | 8.2 | 12.7 | 5,100 | 4,825 | 5.7 |
Other intangible assets | 859 | 645 | 772 | 33.2 | 11.3 | 729 | 817 (10.8) | |
Assets | 272,472 | 268,941 | 236,188 | 1.3 | 15.4 | 266,115 | 234,145 | 13.7 |
Noninterest-bearing deposits | 57,888 | 57,832 | 56,056 | .1 | 3.3 | 57,824 | 55,709 | 3.8 |
Interest-bearing deposits | 237,865 | 227,562 | 220,712 | 4.5 | 7.8 | 231,822 | 217,607 | 6.5 |
Total deposits | 295,753 | 285,394 | 276,768 | 3.6 | 6.9 | 289,646 | 273,316 | 6.0 |
Total U.S. Bancorp shareholders' equity | 25,809 | 25,089 | 24,020 | 2.9 | 7.4 | 25,048 | 23,762 | 5.4 |
Wealth, Corporate, Commercial and Institutional Banking provides core banking, specialized lending, transaction and payment processing, capital markets, asset management, and brokerage and investment related services to wealth, middle market, large corporate, commercial real estate, government and institutional clients, and also includes investments in tax-advantaged projects.
Wealth, Corporate, Commercial and Institutional Banking generated $2,243 million of income before provision and taxes in the third quarter of 2026, compared with $1,838 million in the third quarter of 2025, and contributed $1,598 million of the Company's net income in the third quarter of 2026.
Total net revenue increased compared with the third quarter of 2025, driven by growth in net interest income from higher loan and deposit balances and growth in noninterest income, primarily due to higher capital markets revenue driven by the contribution from BTIG and higher syndication and client-related derivative activity, and higher trust and investment management fees due to business growth and favorable market conditions.
Noninterest expense increased compared with the third quarter of 2025, primarily due to higher compensation and employee benefits expense and higher technology and communications expense, both driven by the BTIG acquisition.
The provision for credit losses decreased compared with the third quarter of 2025, primarily due to favorable credit performance.
CONSUMER AND BUSINESS BANKING | Preliminary | data | ||||
($ in millions) | 3Q 2026 | 2Q 2026 | Percent Change 3Q 3Q26 vs 3Q26 vs 2025 2Q26 3Q25 | YTD 2026 | YTD Percent 2025 Change | |
Condensed Income Statement | ||||||
Net interest income (taxable-equivalent basis) | $1,878 | $1,838 | $1,851 2.2 1.5 | $5,516 | $5,466 | .9 |
Noninterest income | 526 | 537 | 564 (2.0) (6.7) | 1,579 | 1,623 (2.7) | |
Total net revenue | 2,404 | 2,375 | 2,415 1.2 (.5) | 7,095 | 7,089 | .1 |
Noninterest expense | 1,488 | 1,506 | 1,562 (1.2) (4.7) | 4,468 | 4,638 (3.7) | |
Income before provision and taxes | 916 | 869 | 853 5.4 7.4 | 2,627 | 2,451 | 7.2 |
Provision for credit losses | 72 | 78 | 62 (7.7) 16.1 | 222 | 161 | 37.9 |
Income before income taxes | 844 | 791 | 791 6.7 6.7 | 2,405 | 2,290 | 5.0 |
Income taxes and taxable-equivalent | ||||||
adjustment | 211 | 198 | 198 6.6 6.6 | 602 | 573 | 5.1 |
Net income | 633 | 593 | 593 6.7 6.7 | 1,803 | 1,717 | 5.0 |
Net (income) loss attributable to noncontrolling | ||||||
interests | - | - | - - - | - | - | - |
Net income attributable to U.S. Bancorp | $633 | $593 | $593 6.7 6.7 | $1,803 | $1,717 | 5.0 |
Average Balance Sheet Data | ||||||
Loans | $143,819 | $144,009 | $145,906 (.1) (1.4) | $144,005 | $149,750 (3.8) | |
Other earning assets | 2,744 | 2,650 | 2,330 3.5 17.8 | 2,602 | 2,996 (13.2) | |
Goodwill | 4,326 | 4,326 | 4,326 - - | 4,326 | 4,326 | - |
Other intangible assets | 3,945 | 3,910 | 4,223 .9 (6.6) | 3,923 | 4,288 (8.5) | |
Assets | 157,026 | 157,112 | 158,865 (.1) (1.2) | 157,038 | 163,515 (4.0) | |
Noninterest-bearing deposits | 19,138 | 18,677 | 19,782 2.5 (3.3) | 18,749 | 19,628 (4.5) | |
Interest-bearing deposits | 207,718 | 206,556 | 202,303 .6 2.7 | 206,086 | 200,812 | 2.6 |
Total deposits | 226,856 | 225,233 | 222,085 .7 2.1 | 224,835 | 220,440 | 2.0 |
Total U.S. Bancorp shareholders' equity | 12,850 | 12,865 | 13,369 (.1) (3.9) | 12,940 | 13,547 (4.5) | |
Consumer and Business Banking comprises consumer banking, small business banking, debit cards and consumer lending. Products and services are delivered through banking offices, telephone servicing and sales, online services, direct mail, ATMs, mobile devices, distributed mortgage loan officers, and intermediary relationships including auto dealerships, mortgage banks, and strategic business partners.
Consumer and Business Banking generated $916 million of income before provision and taxes in the third quarter of 2026, compared with $853 million in the third quarter of 2025, and contributed $633 million of the Company's net income in the third quarter of 2026.
Total net revenue decreased slightly compared with the third quarter of 2025 due to lower noninterest income, partially offset by higher net interest income. Net interest income increased primarily due to higher deposit balances, while noninterest income decreased primarily due to lower mortgage banking revenue, reflecting lower gain on sale activity.
Noninterest expense decreased compared with the third quarter of 2025, primarily due to lower net shared services expense.
The provision for credit losses increased compared with the third quarter of 2025, primarily due to growth in commercial and other retail loans.
PAYMENT SERVICES | Preliminary data | |||||||
($ in millions) | 3Q 2026 | 2Q 2026 | 3Q 2025 | Percent Change 3Q26 vs 3Q26 vs 2Q26 3Q25 | YTD 2026 | YTD 2025 | Percent Change | |
Condensed Income Statement | ||||||||
Net interest income (taxable-equivalent basis) | $834 | $774 | $781 | 7.8 | 6.8 | $2,402 | $2,253 | 6.6 |
Noninterest income | 1,034 | 1,038 | 973 | (.4) | 6.3 | 2,997 | 2,869 | 4.5 |
Total net revenue | 1,868 | 1,812 | 1,754 | 3.1 | 6.5 | 5,399 | 5,122 | 5.4 |
Noninterest expense | 1,040 | 1,131 | 1,005 | (8.0) | 3.5 | 3,191 | 2,963 | 7.7 |
Income before provision and taxes | 828 | 681 | 749 | 21.6 | 10.5 | 2,208 | 2,159 | 2.3 |
Provision for credit losses | 594 | 385 | 409 | 54.3 | 45.2 | 1,326 | 1,110 | 19.5 |
Income before income taxes | 234 | 296 | 340 | (20.9) | (31.2) | 882 | 1,049 | (15.9) |
Income taxes and taxable-equivalent | ||||||||
adjustment | 59 | 74 | 85 | (20.3) | (30.6) | 221 | 263 | (16.0) |
Net income | 175 | 222 | 255 | (21.2) | (31.4) | 661 | 786 | (15.9) |
Net (income) loss attributable to noncontrolling | ||||||||
interests | - | - | - | - | - | - | - | - |
Net income attributable to U.S. Bancorp | $175 | $222 | $255 | (21.2) | (31.4) | $661 | $786 | (15.9) |
Average Balance Sheet Data | ||||||||
Loans | $48,058 | $45,947 | $42,957 | 4.6 | 11.9 | $46,018 | $42,267 | 8.9 |
Other earning assets | 11 | 7 | 5 | 57.1 nm | 8 | 22 | (63.6) | |
Goodwill | 3,474 | 3,479 | 3,482 | (.1) | (.2) | 3,479 | 3,433 | 1.3 |
Other intangible assets | 333 | 241 | 260 | 38.2 | 28.1 | 271 | 256 | 5.9 |
Assets | 53,331 | 51,171 | 48,428 | 4.2 | 10.1 | 51,187 | 47,705 | 7.3 |
Noninterest-bearing deposits | 2,379 | 2,390 | 2,370 | (.5) | .4 | 2,398 | 2,474 | (3.1) |
Interest-bearing deposits | 94 | 93 | 95 | 1.1 | (1.1) | 93 | 95 | (2.1) |
Total deposits | 2,473 | 2,483 | 2,465 | (.4) | .3 | 2,491 | 2,569 | (3.0) |
Total U.S. Bancorp shareholders' equity | 11,090 | 10,692 | 10,318 | 3.7 | 7.5 | 10,794 | 10,261 | 5.2 |
Payment Services includes consumer and business credit cards, stored-value cards, corporate, government and purchasing card services and merchant processing.
Payment Services generated $828 million of income before provision and taxes in the third quarter of 2026, compared with $749 million in the third quarter of 2025, and contributed $175 million of the Company's net income in the third quarter of 2026.
Total net revenue increased compared with the third quarter of 2025, driven by an increase in net interest income, primarily due to higher loan balances including the impact of the small business credit card portfolio purchase, and an increase in noninterest income, primarily due to higher corporate payment and treasury management revenue and higher card revenue, both driven by higher sales volume.
Noninterest expense increased primarily due to higher technology and communications expense, higher compensation and employee benefits expense and higher marketing and business development expense.
The provision for credit losses increased compared with the third quarter of 2025, primarily due to the impact of recording the initial provision for credit losses related to the purchase of the small business credit card portfolio.
TREASURY AND CORPORATE SUPPORT | Preliminary | data | ||||||
($ in millions) | 3Q 2026 | 2Q 2026 | Percent Change 3Q 3Q26 vs 3Q26 vs 2025 2Q26 3Q25 | YTD 2026 | YTD Percent 2025 Change | |||
Condensed Income Statement | ||||||||
Net interest income (taxable-equivalent basis) | ($193) | ($156) | ($142) | (23.7) | (35.9) | ($518) | ($443) (16.9) | |
Noninterest income | (106) | (84) | (31) | (26.2) | nm | (241) | (143) (68.5) | |
Total net revenue | (299) | (240) | (173) | (24.6) | (72.8) | (759) | (586) (29.5) | |
Noninterest expense | 211 | 173 | 135 | 22.0 | 56.3 | 666 | 556 | 19.8 |
Income (loss) before provision and taxes | (510) | (413) | (308) | (23.5) | (65.6) | (1,425) | (1,142) (24.8) | |
Provision for credit losses | (124) | (54) | (96) | nm | (29.2) | (86) | (78) (10.3) | |
Income (loss) before income taxes | (386) | (359) | (212) | (7.5) | (82.1) | (1,339) | (1,064) (25.8) | |
Income taxes and taxable-equivalent | ||||||||
adjustment | (188) | (214) | (141) | 12.1 | (33.3) | (666) | (509) (30.8) | |
Net income (loss) | (198) | (145) | (71) | (36.6) | nm | (673) | (555) (21.3) | |
Net (income) loss attributable to noncontrolling | ||||||||
interests | (6) | (6) | (7) | - | 14.3 | (17) | (20) | 15.0 |
Net income (loss) attributable to U.S. Bancorp | ($204) | ($151) | ($78) | (35.1) | nm | ($690) | ($575) (20.0) | |
Average Balance Sheet Data | ||||||||
Loans | $714 | $1,039 | $759 | (31.3) | (5.9) | $876 | $725 | 20.8 |
Other earning assets | 203,061 | 204,750 | 224,122 | (.8) | (9.4) | 206,838 | 218,813 (5.5) | |
Goodwill | - | - | - | - | - | - | - | - |
Other intangible assets | 6 | 6 | 7 | - | (14.3) | 6 | 8 (25.0) | |
Assets | 213,802 | 217,486 | 236,124 | (1.7) | (9.5) | 218,899 | 228,785 (4.3) | |
Noninterest-bearing deposits | 1,561 | 1,712 | 1,682 | (8.8) | (7.2) | 1,765 | 1,757 | .5 |
Interest-bearing deposits | (41) | 258 | 8,782 | nm | nm | 239 | 9,005 (97.3) | |
Total deposits | 1,520 | 1,970 | 10,464 | (22.8) | (85.5) | 2,004 | 10,762 (81.4) | |
Total U.S. Bancorp shareholders' equity | 18,002 | 18,219 | 14,936 | (1.2) | 20.5 | 18,050 | 13,492 | 33.8 |
Treasury and Corporate Support includes the Company's investment portfolios, funding, capital management, interest rate risk management, income taxes not allocated to the business segments, and the residual aggregate of those expenses associated with corporate activities that are managed on a consolidated basis.
Treasury and Corporate Support generated a $510 million loss before provision and taxes in the third quarter of 2026, compared with a $308 million loss before provision and taxes in the third quarter of 2025, and recorded a net loss of $204 million in the third quarter of 2026.
Total net revenue decreased compared with the third quarter of 2025, driven by lower net interest income, primarily due to lower interest-bearing deposits with banks and investment securities balances, partially offset by lower funding costs and benefits from fixed asset repricing, as well as lower noninterest income driven by losses on the sales of investment securities.
Noninterest expense increased compared with the third quarter of 2025, primarily due to higher technology and communications expense, net shared services expense, and compensation and employee benefits expense.
The provision for credit losses decreased compared with the third quarter of 2025 primarily due to improvement in the economic outlook.
Income taxes are assessed to each business segment 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.