“We delivered strong third quarter results. Record net revenue of $8.0 billion
3Q26 Key 3Q26 Financial Financial Data Highligh… •Record net revenue of $7,970 million, year-ove… 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-ove… •Diluted earnings per common share of $1.34, an increase of 9.8% year-ove… •Positive operating leverage of 240 basis points from the prior year quarter •Return on average assets of 1.25% and PROFITAB… efficien… METRICS 3Q26 2Q26 3Q25 ratio of 55.9%, both improved on a year-ove… basis •Net interest margin of 2.84%, an increase of 9 basis points on a year-ove… basis •CET1 capital ratio of 10.8% at September 30, 2026 •Average total deposits increase of 2.9% on a year-ove… basis and 2.2% on a linked quarter basis •Average total loans increase of 8.0% on a year-ove… basis and 1.0% on a linked quarter basis Return on average 1.25 1.26 1.17 assets (%) Return on average common 13.6 14.0 13.5 equity (%) Return on tangible common 18.5 18.7 18.6 equity (%)(a) Net interest 2.84 2.79 2.75 margin (%) Efficien… ratio 55.9 57.1 57.2 (%)(a) INCOME 3Q26 2Q26 3Q25 STATEMEN… Net interest income $4,490 $4,387 $4,251 (taxable… basis) Noninter… $3,480 $3,325 $3,078 income Noninter… $4,493 $4,428 $4,197 expense Net income attribut… $2,202 $2,177 $2,001 to U.S. Bancorp Diluted earnings per $1.34 $1.35 $1.22 common share Dividends declared per $.54 $.52 $.52 common share BALANCE 3Q26 2Q26 3Q25 SHEET(b) Average total $409,548 $405,481 $379,152 loans Average total $526,602 $515,080 $511,782 deposits Net charge-o… .51 .53 .56 ratio (%) Book value per common $38.27 $38.91 $36.33 share (period end) Tangible book value per common $29.34 $30.04 $27.84 share (period end)(a) Basel III standard… 10.8 10.8 10.9 CET1 (%)(c) (a) See Non-GAAP Financial Measures reconcil… on page 16 (b) Dollars in millions, except per share data (c) CET1 = Common equity tier 1 capital ratio
“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.”
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 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.
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 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 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 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.
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.
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.
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.
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.
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.
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.”
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.
“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;
• Deterioration in the credit quality of U.S. Bancorp's loan portfolios or in the value of the collateral securing those loans;
• Actions taken by governmental agencies to stabilize or reform the financial system and the effectiveness of such actions;
• 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;
• 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;
• 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 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;
• 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.
In addition to capital ratios defined by banking regulators, the Company considers various other measures when evaluating capital utilization and adequacy, including:
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.
(a) 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.
* Preliminary data. Subject to change prior to filings with applicable regulatory agencies.
(1) Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements.
(2) 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-GA… FINANC… MEASUR… Three Months Ended (Dolla… in Septem… Septemb… Percent Millio… 30,2026 30,2025 Change Unaudi… Net intere… $4,468 $4,222 income Taxabl… 22 29 adjust… Net intere… income, 4,490 4,251 on a taxabl… basis Net intere… income, on a taxabl… 4,490 4,251 basis (as calcul… above) Nonint… 3,480 3,078 income Less: Securi… gains -65 -7 (losse… net Total net revenu… exclud… 8,035 7,336 9.5 % -a net securi… gains (losse… Nonint… 4,493 4,197 7.1 % -b expense Operat… levera… 2.4 % - (b)
(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 2026 WEALTH, CORPORATE, COMMERCIAL AND INSTITUTIONAL BANKING CONSUMER AND BUSINESS BANKING PAYMENT SERVICES TREASURY AND CORPORATE SUPPORT
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 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 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 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 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.
Full text with the tables
3Q26 Key 3Q26
Financial Financial
Data Highligh…
•Record
net
revenue
of $7,970
million,
year-ove…
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-ove…
•Diluted
earnings
per
common
share of
$1.34, an
increase
of 9.8%
year-ove…
•Positive
operating
leverage
of 240
basis
points
from the
prior
year
quarter
•Return
on
average
assets of
1.25% and
PROFITAB… efficien…
METRICS 3Q26 2Q26 3Q25 ratio of
55.9%,
both
improved
on a
year-ove…
basis
•Net
interest
margin of
2.84%, an
increase
of 9
basis
points on
a
year-ove…
basis
•CET1
capital
ratio of
10.8% at
September
30, 2026
•Average
total
deposits
increase
of 2.9%
on a
year-ove…
basis and
2.2% on a
linked
quarter
basis
•Average
total
loans
increase
of 8.0%
on a
year-ove…
basis and
1.0% on a
linked
quarter
basis
Return on
average 1.25 1.26 1.17
assets
(%)
Return on
average
common 13.6 14.0 13.5
equity
(%)
Return on
tangible
common 18.5 18.7 18.6
equity
(%)(a)
Net
interest 2.84 2.79 2.75
margin
(%)
Efficien…
ratio 55.9 57.1 57.2
(%)(a)
INCOME 3Q26 2Q26 3Q25
STATEMEN…
Net
interest
income $4,490 $4,387 $4,251
(taxable…
basis)
Noninter… $3,480 $3,325 $3,078
income
Noninter… $4,493 $4,428 $4,197
expense
Net
income
attribut… $2,202 $2,177 $2,001
to U.S.
Bancorp
Diluted
earnings
per $1.34 $1.35 $1.22
common
share
Dividends
declared
per $.54 $.52 $.52
common
share
BALANCE 3Q26 2Q26 3Q25
SHEET(b)
Average
total $409,548 $405,481 $379,152
loans
Average
total $526,602 $515,080 $511,782
deposits
Net
charge-o… .51 .53 .56
ratio (%)
Book
value per
common $38.27 $38.91 $36.33
share
(period
end)
Tangible
book
value per
common $29.34 $30.04 $27.84
share
(period
end)(a)
Basel III
standard… 10.8 10.8 10.9
CET1
(%)(c)
(a) See
Non-GAAP
Financial
Measures
reconcil…
on page
16
(b)
Dollars
in
millions,
except
per share
data
(c) CET1
= Common
equity
tier 1
capital
ratio
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.
Investor contact:
Brian Mauney, Brian.Mauney@usbank.com | Media
contact:
Jeff Shelman, Jeffrey.Shelman@usbank.com
U.S. Bancorp Third Quarter 2026 Results
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P…
C…
3Q … … 3… 3… P…
2… … … vs vs Y… Y… C…
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… 22 26 29 … … … … …
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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.
2
U.S. Bancorp Third Quarter 2026 Results
──────────────────────────────────────────────────────────────────────────────
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.
3
U.S. Bancorp Third Quarter 2026 Results
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… …
… …
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3Q 2Q 3Q … … …
2… 2… 2… … … … … …
… …
… $… $… … -… 1… $… $… 1…
… 4… 4… … -… 4… 4… 4… 5…
…
… 1… 1… … -… 1… 1… 1… 1…
…
… 4… 4… … 2… 1… 4… 3… 8…
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… 1… 9… … 6… 1… 9… 1… -…
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… 5… 5… … 3… 9… 5… 4… 5…
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… 1… 1… … -… 1… 1… 1… .5
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… 4… 3… … 4… 1… 3… 3… 8…
…
… 4… 3… … 1… 1… 3… 3… .2
…
…
…
… 1… 1… … 1… 3… 1… 1… 3…
…
…
… 2… 2… … 1… 5… 2… 2… .5
…
… 4… 4… … 2… 5… 4… 4… 1…
…
… $… $… … 1… 8… $… $… 6…
…
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.
4
U.S. Bancorp Third Quarter 2026 Results
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… …
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3Q 2Q 3Q … … …
2… 2… 2… … … … … …
… …
… $… $… … .4 1… $… $… 1…
…
…
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… 1… 1… … 1… 2… 1… 1… 2…
…
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… 1… 1… … 2… 2… 1… 1… .7
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… 7… 7… … 7… 2… 7… 5… 2…
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… 3… 3… … 3… 6… 3… 3… 5…
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… 4… 4… … -… -… 4… 5… -…
…
…
… 4… 4… … 2… 3… 4… 4… 2…
…
… $… $… … 2… 2… $… $… 2…
…
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.
5
U.S. Bancorp Third Quarter 2026 Results
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… …
… …
…
3Q 2Q 3Q … … …
2… 2… 2… … … … … …
… …
… $… $… … 1… 6… $… $… 5…
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… 4… 4… … 3… 1… 1… 1… 6…
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… 4… 4… … -… -… 1… 1… 2…
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… 8… 7… … 2… 9… 2… 2… 1…
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… 3… 3… … — 6… 9… 8… 9…
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… 6… 5… … 2… 6… 1… 9… 5…
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…
… 1… 1… … -… -… 4… 5… -…
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…
… 1… 1… … 1… 1… 3… 2… 1…
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… 1… 1… … 2… 3… 4… 4… 6…
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… 3… 3… … 5… 1… 9… 8… 1…
…
…
… -… -… … -… … -… -… …
…
…
…
… $… $… … 4… 1… $… $… 1…
…
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.
6
U.S. Bancorp Third Quarter 2026 Results
…
…
… …
… …
…
3Q 2Q 3Q … … …
2… 2… 2… … … … … …
… …
…
… $… $… … 2… 7… $… $… 3…
…
…
…
… 3… 3… … 2… 3… 9… 9… 1…
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…
… 1… 1… … 2… -… 3… 3… -…
…
…
… 1… 2… … -… 1… 6… 5… 2…
…
…
…
… 6… 6… … 1… 1… 1… 1… 1…
…
… 1… 1… … 1… 1… 3… 3… -…
…
… 3… 3… … -… -… 1… 1… -…
…
… $… $… … 1… 7… $… $… 4…
…
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.
7
U.S. Bancorp Third Quarter 2026 Results
… … … … … %… … %… … %…
… … … … …
… … $… $… $…
… — — — —
… … … … 1… … 1… … 23 …
5 … 5 … 4 … 5 … 7 …
… … … … 1… … 1… … 30 …
… … … … 2 … -3 … 1… …
— — — — -… … — — — —
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— — — — 1 … 1 … -2 …
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… … 2… 2… 2…
… … 5… 5… 4…
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8
U.S. Bancorp Third Quarter 2026 Results
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 $840
million at September 30, 2025. The decrease in accruing loans 90 days or more
past due from the prior year quarter was primarily due to the resolution of
elevated prior year residential mortgage delinquencies.
9
U.S. Bancorp Third Quarter 2026 Results
DELINQU…
LOAN
RATIOS
AS A
PERCENT
OF
ENDING
LOAN
BALANCES Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Percen… 2026 2026 2026 2025 2025
──────────────────────────────────────────────────────────────────────────────
Delinqu…
loan
ratios -
90 days
or more
past due
Commerc… .01 .01 .02 .01 .01
Commerc…
real .01 .01 .03 .03 .04
estate
Residen… .19 .20 .23 .25 .26
mortgag…
Credit 1.10 1.13 1.29 1.27 1.26
card
Other .10 .09 .12 .12 .12
retail
Total .18 .18 .21 .22 .22
loans
Delinqu…
loan
ratios -
90 days
or more
past due
and
nonperf…
loans
Commerc… .28 .26 .45 .50 .53
Commerc…
real .98 1.09 1.07 1.09 1.24
estate
Residen… .34 .35 .36 .38 .38
mortgag…
Credit 1.10 1.13 1.29 1.27 1.26
card
Other .46 .46 .50 .51 .49
retail
Total .49 .50 .58 .61 .64
loans
AS…
QU…
($ Sep Jun Mar Dec Sep
in 30 30 31 31 30
mi… 2026 2026 2026 2025 2025
──────────────────────────────────────────────────────────────────────────────
No…
lo…
Co… $407 $377 $622 $695 $708
Le… 25 25 26 22 25
fi…
To… 432 402 648 717 733
co…
Co… 490 538 488 504 558
mo…
Co…
and 28 30 34 14 21
de…
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Re… 176 171 159 151 143
mo…
Cr… — — — — —
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as…
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or
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pa…
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pl…
ORE
(%)
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and
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10
U.S. Bancorp Third Quarter 2026 Results
CO…
SH…
(M… 3Q 2Q 1Q 4Q 3Q
2026 2026 2026 2025 2025
Be…
sh… 1,5… 1,5… 1,555 1,556 1,558
ou…
Sh…
is…
for
st…
in…
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and
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co…
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Sh… — -3 -5 -3 -2
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sh… 1,5… 1,5… 1,555 1,555 1,556
ou…
…
…
… S… Jun Mar Dec Sep
… 30 30 31 31 30 P…
… 2… 20… 20… 20… 20… D…
──────────────────────────────────────────────────────────────────────────────
…
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…
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1
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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.
11
U.S. Bancorp Third Quarter 2026 Results
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;
12
U.S. Bancorp Third Quarter 2026 Results
• 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.
13
CON…
STA…
OF
INC…
(Do…
and
Sha… Three Nine
in Mont… Mont…
Mil… Ended Ended
Exc… Sept… Sept…
Per 30, 30,
Sha…
Dat…
(Un… 2026 2025 2026 2025
Int…
Inc…
Loa… $5,9… $5,6… $17,… $16,…
Loa…
held 41 35 119 122
for
sale
Inv… 1,303 1,392 3,950 4,055
sec…
Oth…
int… 510 687 1,536 1,976
inc…
Tot…
int… 7,774 7,802 22,7… 22,9…
inc…
Int…
Exp…
Dep… 2,491 2,648 7,105 7,700
Sho… 198 203 661 743
bor…
Lon… 617 729 1,921 2,114
debt
Tot…
int… 3,306 3,580 9,687 10,5…
exp…
Net
int… 4,468 4,222 13,0… 12,3…
inc…
Pro…
for 654 571 1,768 1,609
cre…
los…
Net
int…
inc…
aft… 3,814 3,651 11,3… 10,7…
pro…
for
cre…
los…
Non…
Inc…
Card 440 415 1,266 1,202
rev…
Cor…
pay…
and 457 407 1,305 1,228
tre…
man…
rev…
Mer…
pro… 461 463 1,382 1,352
ser…
Tru…
and
inv… 802 730 2,332 2,113
man…
fees
Len…
and 308 290 910 833
dep…
fees
Cap…
mar… 640 378 1,529 985
rev…
Mor…
ban… 155 180 485 515
rev…
Inv…
pro… 116 97 315 274
fees
Sec…
gai… -65 -7 -149 -64
(lo…
net
Oth… 166 125 427 400
Tot…
non… 3,480 3,078 9,802 8,838
inc…
Non…
Exp…
Com…
and 2,753 2,561 8,066 7,798
emp…
ben…
Net
occ… 309 300 916 907
and
equ…
Pro… 115 117 319 324
ser…
Mar…
and 199 175 632 518
bus…
dev…
Tec…
and 666 560 1,840 1,627
com…
Oth… 127 125 351 372
int…
Oth… 324 359 1,062 1,064
Tot…
non… 4,493 4,197 13,1… 12,6…
exp…
Inc…
bef… 2,801 2,532 7,940 6,984
inc…
tax…
App…
inc… 593 524 1,599 1,439
tax…
Net 2,208 2,008 6,341 5,545
inc…
Net
(in…
loss
att… -6 -7 -17 -20
to
non…
int…
Net
inc…
att… $2,2… $2,0… $6,3… $5,5…
to
U.S.
Ban…
Net
inc…
app…
to $2,0… $1,8… $6,0… $5,2…
U.S.
Ban…
com…
sha…
Ear…
per $1.34 $1.22 $3.88 $3.36
com…
sha…
Dil…
ear…
per $1.34 $1.22 $3.88 $3.35
com…
sha…
Div…
dec…
per $.54 $.52 $1.58 $1.52
com…
sha…
Ave…
com… 1,558 1,557 1,555 1,558
sha…
out…
Ave…
dil…
com… 1,559 1,557 1,556 1,559
sha…
out…
(a) 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.
14
CONSOLI…
ENDING
BALANCE
SHEET
(Dollars September December September
in 30,2026 31,2025 30,2025
Million…
Assets
Cash and
due from $49,523 $46,890 $66,637
banks
Investm…
securit…
Held-to… 72,923 76,170 76,931
Availab… 80,228 90,838 89,065
Loans
held for 2,426 2,538 2,490
sale
Loans
Commerc… 158,814 146,418 140,982
Commerc…
real 53,451 48,920 48,244
estate
Residen… 116,806 115,885 115,046
mortgag…
Credit 41,587 38,031 36,434
card
Other 44,589 42,081 41,811
retail
Total 415,247 391,335 382,517
loans
Less
allowan… -7,815 -7,605 -7,557
for loan
losses
Net 407,432 383,730 374,960
loans
Premises
and 3,894 3,768 3,695
equipme…
Goodwill 13,232 12,635 12,634
Other
intangi… 5,310 4,904 5,152
assets
Other 67,998 70,872 63,793
assets
Total $702,966 $692,345 $695,357
assets
Liabili…
and
Shareho…
Equity
Deposits
Noninte… $85,596 $84,116 $91,550
Interes… 446,109 438,100 434,599
Total 531,705 522,216 526,149
deposits
Short-t… 21,044 17,162 15,449
borrowi…
Long-te… 51,996 60,764 62,535
debt
Other 31,333 26,552 27,426
liabili…
Total 636,078 626,694 631,559
liabili…
Shareho…
equity
Preferr… 6,808 6,808 6,808
stock
Common 21 21 21
stock
Capital 8,839 8,728 8,745
surplus
Retained 84,503 80,906 79,742
earnings
Less
treasury -24,284 -24,283 -24,228
stock
Accumul…
other
compreh… -9,462 -6,987 -7,748
income
(loss)
Total
U.S.
Bancorp 66,425 65,193 63,340
shareho…
equity
Noncont… 463 458 458
interes…
Total 66,888 65,651 63,798
equity
Total
liabili… $702,966 $692,345 $695,357
and
equity
15
N…
F…
M…
(…
in Sep… June Mar… Dec… Sep…
M… 30,… 30,… 31,… 31,… 30,…
U…
T… $6… $6… $6… $6… $6…
e…
P… -6… -6… -6… -6… -6…
s…
N… -4… -4… -4… -4… -4…
i…
C… 59… 60… 58… 58… 56…
e…
G…
(…
of -1… -1… -1… -1… -1…
d…
t…
l…
I…
a…
(…
of
d…
t… -1… -1… -1… -1… -1…
l…
o…
t…
m…
s…
r…
T…
c… 45… 46… 45… 45… 43…
e…
T… 70… 72… 70… 69… 69…
a…
G…
(…
of -1… -1… -1… -1… -1…
d…
t…
l…
I…
a…
(…
of
d…
t… -1… -1… -1… -1… -1…
l…
o…
t…
m…
s…
r…
T… 68… 71… 68… 67… 68…
a…
R…
a…
d…
in
a…
w…
p… 50… * 49… 48… 48… 46…
r…
c…
r…
e…
f…
t…
C…
C…
s… 1,… 1,… 1,… 1,… 1,…
o…
R…
*
C…
e… 8.5 % 8.4 % 8.4 % 8.4 % 8.1 %
to
a…
T…
c…
e… 6.6 6.6 6.7 6.7 6.4
to
t…
a…
T…
c…
e… 9.0 9.4 9.4 9.4 9.3
to
r…
a…
T…
b…
v… $2… $3… $2… $2… $2…
p…
c…
s…
Thr…
Mon…
End…
Sep… June Mar… Dec… Sep…
30,… 30,… 31,… 31,… 30,…
N…
i…
a…
to $2… $2… $1… $1… $1…
U…
B…
c…
s…
I…
a… 100 90 87 100 99
(…
N…
i…
a…
to
U…
B… 2,… 2,… 1,… 2,… 1,…
c…
s…
e…
i…
a…
A…
n…
i…
a…
to
U… 8,… 8,… 7,… 8,… 7,…
B…
c…
s…
e…
i…
a…
A…
t… 68… 67… 66… 65… 63…
e…
A…
p… -6… -6… -6… -6… -6…
s…
A…
n… -4… -4… -4… -4… -4…
i…
A…
g…
(…
of -1… -1… -1… -1… -1…
d…
t…
l…
A…
i…
a…
(…
of
d…
t… -1… -1… -1… -1… -1…
l…
o…
t…
m…
s…
r…
A…
t… 47… 46… 45… 44… 42…
c…
e…
R…
on
t… 18… % 18… % 17… % 18… % 18… %
c…
e…
N…
i… $4… $4… $4… $4… $4…
i…
T… 22 26 28 28 29
a…
N…
i…
i…
on 4,… 4,… 4,… 4,… 4,…
a
t…
b…
N…
i…
i…
on
a 4,… 4,… 4,… 4,… 4,…
t…
b…
(…
c…
a…
N… 3,… 3,… 2,… 3,… 3,…
i…
L…
S…
g… -65 -49 -35 3 -7
(…
n…
T…
n…
r…
e… 8,… 7,… 7,… 7,… 7,…
n…
s…
g…
(…
N… 4,… 4,… 4,… 4,… 4,…
e…
E… 55… % 57… % 58… % 57… % 57… %
r…
* Preliminary data. Subject to change prior to filings with applicable
regulatory agencies.
(1) Includes goodwill related to certain investments in unconsolidated financial
institutions per prescribed regulatory requirements.
(2) 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.
16
NON-GA…
FINANC…
MEASUR…
Three
Months
Ended
(Dolla…
in Septem… Septemb… Percent
Millio… 30,2026 30,2025 Change
Unaudi…
Net
intere… $4,468 $4,222
income
Taxabl… 22 29
adjust…
Net
intere…
income, 4,490 4,251
on a
taxabl…
basis
Net
intere…
income,
on a
taxabl… 4,490 4,251
basis
(as
calcul…
above)
Nonint… 3,480 3,078
income
Less:
Securi…
gains -65 -7
(losse…
net
Total
net
revenu…
exclud… 8,035 7,336 9.5 % -a
net
securi…
gains
(losse…
Nonint… 4,493 4,197 7.1 % -b
expense
Operat…
levera… 2.4 %
- (b)
(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.
17
Business Segment Schedules
Third Quarter 2026
WEALTH, CORPORATE, COMMERCIAL AND
INSTITUTIONAL BANKING
CONSUMER AND BUSINESS BANKING
PAYMENT SERVICES
TREASURY AND CORPORATE SUPPORT
…
…
… …
… …
… … …
… … …
… …
… …
… … … … … … … …
… … … … … … … …
… …
… … … … … $… $… 2…
… … … … … 1… 1… 5…
… … … … … 6… 7… -…
… … … … … -… -… -…
… … … … … $… $… 1…
… …
… … …
… … …
… …
… …
… … … … … … … …
… … … … … … … …
… …
… … … … … $… $… 2…
… … … … … 2… 2… 7…
… … … … … 2… 2… 2…
… … … … … -… -… -…
… … … … … $… $… 1…
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.
19
…
…
… …
… …
…
…
… …
… …
…
3Q 2Q 3Q … … … … …
2… 2… 2… … … … … …
… …
…
…
…
…
…
… $… $… … 2… 1… $… $… 1…
…
…
… 2… 1… … 1… 2… 5… 4… 2…
…
…
… 3… 3… … 6… 1… 1… 9… 1…
…
… 1… 1… … 8… 1… 4… 4… 9…
…
…
…
… 2… 2… … 4… 2… 6… 5… 2…
…
…
…
… 1… 1… … -… -… 3… 4… -…
…
…
…
… 2… 2… … 5… 2… 6… 4… 2…
…
…
…
…
… 5… 5… … 5… 2… 1… 1… 2…
…
…
… 1… 1… … 5… 2… 4… 3… 2…
…
…
…
…
… — — — — — — — —
…
…
…
…
…
… $… $… … 5… 2… $… $… 2…
…
…
…
…
…
…
…
… $… $… … 1… 1… $… $… 1…
…
… 1… 1… … -… 2… 1… 1… 2…
…
… 5… 5… … 8… 1… 5… 4… 5…
…
… 8… 6… … 3… 1… 7… 8… -…
…
… 2… 2… … 1… 1… 2… 2… 1…
… 5… 5… … .1 3… 5… 5… 3…
…
… 2… 2… … 4… 7… 2… 2… 6…
…
… 2… 2… … 3… 6… 2… 2… 6…
…
…
…
… 2… 2… … 2… 7… 2… 2… 5…
…
…
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.
20
…
… …
… …
…
… …
… …
…
3Q 2Q 3Q … … … … …
2… 2… 2… … … … … …
… …
…
…
…
…
…
… $… $… … 2… 1… $… $… .9
…
…
… 5… 5… … -… -… 1… 1… -…
…
…
… 2… 2… … 1… -… 7… 7… .1
…
… 1… 1… … -… -… 4… 4… -…
…
…
…
… 9… 8… … 5… 7… 2… 2… 7…
…
…
…
… 72 78 … -… 1… 2… 1… 3…
…
…
…
… 8… 7… … 6… 6… 2… 2… 5…
…
…
…
…
… 2… 1… … 6… 6… 6… 5… 5…
…
…
… 6… 5… … 6… 6… 1… 1… 5…
…
…
…
…
… — — — — — — — —
…
…
…
…
…
… $… $… … 6… 6… $… $… 5…
…
…
…
…
…
…
…
… $… $… … -… -… $… $… -…
…
… 2… 2… … 3… 1… 2… 2… -…
…
… 4… 4… … — — 4… 4… —
…
… 3… 3… … .9 -… 3… 4… -…
…
… 1… 1… … -… -… 1… 1… -…
… 1… 1… … 2… -… 1… 1… -…
…
… 2… 2… … .6 2… 2… 2… 2…
…
… 2… 2… … .7 2… 2… 2… 2…
…
…
…
… 1… 1… … -… -… 1… 1… -…
…
…
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.
21
… …
… …
… …
… …
…
3Q 2Q 3Q … … … … …
2… 2… 2… … … … … …
… …
…
…
…
…
…
… $… $… … 7… 6… $… $… 6…
…
…
… 1… 1… … -… 6… 2… 2… 4…
…
…
… 1… 1… … 3… 6… 5… 5… 5…
…
… 1… 1… … -… 3… 3… 2… 7…
…
…
…
… 8… 6… … 2… 1… 2… 2… 2…
…
…
…
… 5… 3… … 5… 4… 1… 1… 1…
…
…
…
… 2… 2… … -… -… 8… 1… -…
…
…
…
…
… 59 74 … -… -… 2… 2… -…
…
…
… 1… 2… … -… -… 6… 7… -…
…
…
…
…
… — — — — — — — —
…
…
…
…
…
… $… $… … -… -… $… $… -…
…
…
…
…
…
…
…
… $… $… … 4… 1… $… $… 8…
…
… 11 7 5 5… … 8 22 -…
…
… 3… 3… … -… -… 3… 3… 1…
…
… 3… 2… … 3… 2… 2… 2… 5…
…
… 5… 5… … 4… 1… 5… 4… 7…
… 2… 2… … -… .4 2… 2… -…
…
… 94 93 … 1… -… 93 95 -…
…
… 2… 2… … -… .3 2… 2… -…
…
…
…
… 1… 1… … 3… 7… 1… 1… 5…
…
…
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.
22
…
… …
… …
…
… …
… …
…
3Q 2Q 3Q … … … … …
2… 2… 2… … … … … …
… …
…
…
…
…
…
… -… -… … -… -… -… -… -…
…
…
… -… -… … -… … -… -… -…
…
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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.
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