"In the fourth quarter we posted diluted earnings per share of $1.07 and delivered a return on tangible common equity of 18.3%, both as adjusted for notable items. Year-over-year top line revenue growth and continued expense discipline resulted in 190 basis points of positive operating leverage on an adjusted basis. Both full year and linked quarter results showcased the benefits of effective balance sheet management, earning asset repricing and mix, as well as our diversified business model. Noninterest income benefited from strong year-over-year growth in commercial products as well as trust and investment management fees as we're seeing the results of greater “interconnectedness” play out in the form of deeper relationships, an enhanced product set, and broader distribution across the franchise. Credit quality remains stable, and our CET1 capital ratio ended the year at 10.6% as we balanced continued capital accretion with a modest initial share buyback this quarter. As we move into 2025, we are well positioned to deliver industry-leading returns on tangible common equity and remain confident in our strategy for future growth and our ability to deliver meaningful positive operating leverage. In closing, I would like to extend our sincerest thoughts to those impacted by the devastating wildfires in California. We are closely monitoring this situation and stand ready to assist our many employees, clients, and communities in their time of need.”

(a)4Q24 excludes $109 million ($82 million net-of-tax) of notable items related to lease impairments and operational efficiency actions. 4Q23 excludes $1.1 billion ($780 million net-of-tax, including a $70 million discrete tax benefit) of notable items including: $(118) million of noninterest income related to investment securities balance sheet repositioning and capital management actions, $171 million of merger and integration-related charges, $734 million of FDIC special assessment charges and a $110 million charitable contribution.

(b)See Non-GAAP Financial Measures reconciliation beginning on page 18.

(c)2024 excludes $400 million ($300 million net-of-tax) of notable items including: $109 million of lease impairments and operational efficiency actions, $155 million of merger and integration-related charges and $136 million for the increase in the FDIC special assessment. 2023 excludes $2.2 billion ($1.6 billion net-of-tax, including a $70 million discrete tax benefit) of notable items including: $(140) million of noninterest income related to investment securities balance sheet repositioning and capital management actions, $1.0 billion of merger and integration-related charges, $734 million of FDIC special assessment charges, a $110 million charitable contribution and $243 million of provision for credit losses related to balance sheet repositioning and capital management actions.

(d)See Non-GAAP Financial Measures reconciliation beginning on page 18.

Net income attributable to U.S. Bancorp was $1,663 million for the fourth quarter of 2024, $816 million higher than the $847 million for the fourth quarter of 2023 and $51 million lower than the $1,714 million for the third quarter of 2024. Diluted earnings per common share was $1.01 in the fourth quarter of 2024, compared with $0.49 in the fourth quarter of 2023 and $1.03 in the third quarter of 2024. The fourth quarter of 2024 included notable items of $82 million or ($0.06) per diluted common share. The fourth quarter of 2023 included notable items of $780 million or ($0.50) per diluted common share. Excluding the impact of notable items, net income attributable to U.S. Bancorp for the fourth quarter of 2024 was $1,745 million, $118 million higher than the fourth quarter of 2023 and $31 million higher than the third quarter of 2024.

The increase in net income attributable to U.S. Bancorp year-over-year was primarily due to higher total net revenue and lower noninterest expense driven by higher notable items in the prior year quarter, partially offset by an increase in the provision for credit losses. Excluding notable items, pretax income in the fourth quarter of 2024 increased 3.8 percent compared with a year ago. Net interest income increased 0.8 percent on a year-over-year taxable-equivalent basis, due to higher rates on earning assets and balance sheet growth, partially offset by higher funding costs driven by interest rates on deposits, mix and pricing. The net interest margin decreased to 2.71 percent in the fourth quarter of 2024 from 2.78 percent in the fourth quarter of 2023, driven by balance sheet composition partially offset by the factors described above. Noninterest income increased 8.1 percent compared with a year ago (3.5 percent excluding prior year notable items) driven by higher trust and investment management fees and commercial products revenue, partially offset by lower mortgage banking revenue and other revenue. Noninterest expense decreased 17.4 percent primarily due to higher notable items in the prior year quarter and lower professional services, marketing and business development, and other noninterest expense, partially offset by higher compensation and employee benefits expense. Excluding notable items in both quarters, noninterest expense in the fourth quarter of 2024 decreased slightly compared with the fourth quarter of 2023. The provision for credit losses increased $48 million (9.4 percent) compared with the fourth quarter of 2023, largely driven by higher losses on credit card and commercial loans.

Net income attributable to U.S. Bancorp decreased on a linked quarter basis primarily due to notable items in the fourth quarter of 2024 and higher income tax provision, partially offset by higher total net revenue. Excluding notable items in the fourth quarter of 2024, pretax income increased 6.8 percent on a linked quarter basis. Net interest income increased 0.2 percent on a taxable-equivalent basis. The net interest margin decreased to 2.71 percent in the fourth quarter of 2024 from 2.74 percent in the third quarter of 2024, driven by slightly higher average earning assets. Noninterest income in the fourth quarter of 2024 increased 5.0 percent from the third quarter of 2024 primarily due to higher trust and investment management fees, higher other revenue, and net losses on securities sales in the prior quarter, partially offset by lower payments revenue, commercial products revenue and mortgage banking revenue. Noninterest expense in the fourth quarter of 2024 increased by 2.5 percent from the third quarter of 2024 primarily due to notable items, partially offset by lower compensation and employee benefits expense. Excluding notable items in the fourth quarter of 2024, noninterest expense decreased slightly on a linked quarter basis. The provision for credit losses increased $3 million (0.5 percent) compared with the third quarter of 2024.

Net interest income on a taxable-equivalent basis in the fourth quarter of 2024 was $4,176 million, an increase of $34 million (0.8 percent) from the fourth quarter of 2023. The increase was primarily due to the impact of higher rates on earning assets and balance sheet growth, partially offset by higher funding costs due to interest rates on deposits, mix and pricing. Average earning assets were $20.0 billion (3.4 percent) higher than the fourth quarter of 2023, reflecting increases of $9.4 billion (5.8 percent) in average investment securities due to balance sheet positioning and liquidity management, $2.8 billion (0.8 percent) in average total loans, $2.8 billion (6.0 percent) in average interest-bearing deposits with banks, and $4.1 billion (41.7 percent) in other earning assets.

Net interest income on a taxable-equivalent basis increased $10 million (0.2 percent) on a linked quarter basis. Average earning assets were $7.1 billion (1.2 percent) higher on a linked quarter basis, reflecting increases of $4.4 billion (2.7 percent) in average investment securities due to balance sheet positioning and liquidity management, $1.6 billion (0.4 percent) in average total loans and $1.0 billion (7.8 percent) in other earning assets.

The net interest margin in the fourth quarter of 2024 was 2.71 percent, compared with 2.78 percent in the fourth quarter of 2023 and 2.74 percent in the third quarter of 2024. The decrease in the net interest margin from the prior year was driven by changes in balance sheet composition, partially offset by factors mentioned above. The decrease in the net interest margin from the prior quarter was driven by slightly higher average earning assets.

Average total loans for the fourth quarter of 2024 were $2.8 billion (0.8 percent) higher than the fourth quarter of 2023. The increase was primarily due to higher total commercial loans (3.3 percent), residential mortgages (2.8 percent) and credit card loans (6.1 percent), partially offset by lower total commercial real estate loans (7.3 percent) and total other retail loans (5.4 percent). The increase in commercial loans was primarily due to growth in corporate banking. The increase in residential mortgages was primarily driven by originations. The increase in credit card loans was primarily driven by customer account growth and higher spend volume. The decrease in commercial real estate loans was primarily due to loan workout activities and payoffs exceeding a reduced level of new originations. The decrease in other retail loans was primarily due to lower automobile loans.

Average total loans were $1.6 billion (0.4 percent) higher than the third quarter of 2024. The increase was primarily due to higher total commercial loans (1.7 percent) and residential mortgages (0.7 percent), partially offset by lower total commercial real estate loans (3.1 percent). Linked quarter changes were primarily driven by similar factors as the year-over-year changes.

Average total deposits for the fourth quarter of 2024 were $9.5 billion (1.9 percent) higher than the fourth quarter of 2023. Average noninterest-bearing deposits decreased $7.7 billion (8.5 percent) reflecting balance decreases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking. Average total savings deposits were $13.4 billion (3.7 percent) higher year-over-year driven by increases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking. Average time deposits were $3.8 billion (7.3 percent) higher than the fourth quarter of 2023 mainly within Consumer and Business Banking, partially offset by decreases within Wealth, Corporate, Commercial and Institutional Banking. Changes in time deposits are primarily related to those deposits managed as an alternative to other funding sources, based largely on relative pricing and liquidity characteristics.

Average total deposits increased $3.6 billion (0.7 percent) from the third quarter of 2024. On a linked quarter basis, average noninterest-bearing deposits increased $2.0 billion (2.4 percent) reflecting an increase within Wealth, Corporate, Commercial and Institutional Banking, partially offset by a decrease within Consumer and Business Banking. Average total savings deposits increased $3.9 billion (1.1 percent) driven by increases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking. Average time deposits were $2.3 billion (3.9 percent) lower on a linked quarter basis due to decreases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking.

Fourth quarter noninterest income of $2,833 million was $213 million (8.1 percent) higher than the fourth quarter of 2023. Excluding notable items of $(118) million in the fourth quarter of 2023, noninterest income in the fourth quarter of 2024 increased $95 million (3.5 percent) from the prior year quarter. The increase was driven by higher payment services revenue, trust and investment management fees and commercial products revenue. Payment services revenue increased $16 million (1.6 percent) compared with the fourth quarter of 2023. Within payment services revenue, corporate payments products revenue increased $9 million (4.9 percent) due to higher sales volume, and merchant processing revenue increased $10 million (2.4 percent) due to business volume growth. Card revenue was impacted by a reduction in prepaid card volumes from a year ago. Trust and investment management fees increased $82 million (13.2 percent) driven by business growth and favorable market conditions. Commercial products revenue increased $38 million (11.7 percent) driven by customer-related derivative activity. Partially offsetting these increases were lower mortgage banking revenue of $21 million (15.3 percent) due to the change in fair value of mortgage servicing rights, net of hedging activities and lower other revenue of $21 million (9.2 percent).

Noninterest income was $135 million (5.0 percent) higher in the fourth quarter of 2024 compared with the third quarter of 2024. The increase was driven by higher trust and investment management fees and other revenue, and prior quarter net losses on securities sales of $119 million. Trust and investment management fees increased $36 million (5.4 percent) driven by business growth and favorable market conditions. Other revenue increased $64 million (44.8 percent) driven by seasonally higher tax-advantaged investment syndication revenue. Partially offsetting these increases were lower payment services revenue, commercial products revenue, and mortgage banking revenue. Payment services revenue decreased $26 million (2.4 percent) compared with the third quarter of 2024. Within payment services revenue, corporate payments products revenue decreased $12 million (5.9 percent) and merchant processing revenue decreased $21 million (4.8 percent), both due to lower sales volume. Commercial products revenue decreased $33 million (8.3 percent) due to lower corporate bond fees. Mortgage banking revenue decreased $39 million (25.2 percent) primarily driven by the change in fair value of mortgage servicing rights, net of hedging activities and lower production volume.

Fourth quarter noninterest expense of $4,311 million was $908 million (17.4 percent) lower than the fourth quarter of 2023. Excluding notable items of $109 million in the fourth quarter of 2024 and $1,015 million in the fourth quarter of 2023, fourth quarter noninterest expense decreased $2 million compared with the fourth quarter of 2023. The decrease was driven by lower professional services, marketing and business development, and other noninterest expense, partially offset by higher compensation and employee benefits expense. Professional services expense decreased $23 million (14.6 percent) due to prudent expense management and continued focus on operational efficiency. Marketing and business development expense decreased $36 million (18.4 percent) due to the timing of campaigns. Compensation and employee benefits expense increased $98 million (3.9 percent) compared with the fourth quarter of 2023 primarily due to higher commissions, corporate incentives, and medical expenses.

Noninterest expense increased $107 million (2.5 percent) from the third quarter of 2024. Excluding notable items of $109 million in the fourth quarter of 2024, fourth quarter noninterest expense decreased $2 million on a linked quarter basis primarily driven by lower compensation and employee benefits expense, offset by small increases in several other expense categories. Compensation and employee benefits expense decreased $30 million (1.1 percent) primarily due to operational efficiencies, lower performance-based incentives, and timing of corporate incentives, partially offset by higher medical expenses.

The provision for income taxes for the fourth quarter of 2024 resulted in a tax rate of 21.9 percent on a taxable-equivalent basis (effective tax rate of 20.8 percent), compared with 16.5 percent on a taxable-equivalent basis (effective tax rate of 13.9 percent) in the fourth quarter of 2023, and a tax rate of 18.1 percent on a taxable-equivalent basis (effective tax rate of 16.9 percent) in the third quarter of 2024. The fourth quarter of 2023 and third quarter of 2024 included the impact of favorable tax settlements.

The Company’s provision for credit losses for the fourth quarter of 2024 was $560 million, compared with $557 million in the third quarter of 2024 and $512 million in the fourth quarter of 2023. The fourth quarter of 2024 provision was $3 million (0.5 percent) higher than the third quarter of 2024 and $48 million (9.4 percent) higher than the fourth quarter of 2023. The increase in provision expense on a year-over-year basis was primarily driven by higher losses on credit card and commercial real estate loans. The Company continues to monitor economic uncertainty related to interest rates, inflationary pressures, and other economic factors that may affect the financial strength of corporate and consumer borrowers.

Total net charge-offs in the fourth quarter of 2024 were $562 million, compared with $564 million in the third quarter of 2024 and $463 million in the fourth quarter of 2023. The net charge-off ratio was 0.60 percent in the fourth quarter of 2024 and in the third quarter of 2024, compared with 0.49 percent in the fourth quarter of 2023. The decrease in net charge-offs on a linked quarter basis was primarily due to higher recoveries on commercial real estate loans, partially offset by higher charge-offs on credit card and other retail loans. The increase in net charge-offs on a year-over-year basis primarily reflected higher losses on commercial and credit card loans, partially offset by lower losses on commercial real estate loans.

The allowance for credit losses was $7,925 million at December 31, 2024, compared with $7,927 million at September 30, 2024, and $7,839 million at December 31, 2023. The increase in the allowance for credit losses on a year-over-year basis was primarily driven by portfolio growth. The ratio of the allowance for credit losses to period-end loans was 2.09 percent at December 31, 2024, compared with 2.12 percent at September 30, 2024, and 2.10 percent at December 31, 2023. The ratio of the allowance for credit losses to nonperforming loans was 442 percent at December 31, 2024, compared with 438 percent at September 30, 2024, and 541 percent at December 31, 2023.

Nonperforming assets were $1,832 million at December 31, 2024, compared with $1,848 million at September 30, 2024, and $1,494 million at December 31, 2023. The ratio of nonperforming assets to loans and other real estate was 0.48 percent at December 31, 2024, compared with 0.49 percent at September 30, 2024, and 0.40 percent at December 31, 2023. The increase in nonperforming assets on a year-over year basis was primarily due to higher commercial and commercial real estate nonperforming loans. Accruing loans 90 days or more past due were $810 million at December 31, 2024, compared with $738 million at September 30, 2024, and $698 million at December 31, 2023.

Total U.S. Bancorp shareholders’ equity was $58.6 billion at December 31, 2024, compared with $58.9 billion at September 30, 2024, and $55.3 billion at December 31, 2023. During the third quarter of 2024, the Company's Board of Directors authorized a share repurchase program for up to $5.0 billion of the Company's outstanding common stock effective September 13, 2024. The Company began repurchasing shares, in addition to those currently done in connection with its stock-based compensation plans, in the fourth quarter of 2024.

All regulatory 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 10.6 percent at December 31, 2024, compared with 10.5 percent at September 30, 2024, and 9.9 percent at December 31, 2023. The common equity tier 1 capital to risk-weighted assets ratio, reflecting the full implementation of the current expected credit losses methodology, was 10.5 percent at December 31, 2024, compared with 10.5 percent at September 30, 2024, and 9.7 percent at December 31, 2023.

On Thursday, January 16, 2025 at 8 a.m. CT, Chairman and Chief Executive Officer Andy Cecere and Senior Executive Vice President and Chief Financial Officer John Stern will host a conference call to review the financial results. The live conference call will be available online and 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 at approximately 11 a.m. CT on Thursday, January 16, 2025. 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.”

U.S. Bancorp, with more than 70,000 employees and $678 billion in assets as of December 31, 2024, is the parent company of U.S. Bank National Association. Headquartered in Minneapolis, the company serves millions of customers locally, nationally and globally through a diversified mix of businesses including consumer banking, business banking, commercial banking, institutional banking, payments and wealth management. U.S. Bancorp has been recognized for its approach to digital innovation, community partnerships and customer service, including being named one of the 2024 World’s Most Ethical Companies and Fortune’s most admired superregional bank. Learn more at usbank.com/about.

“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 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 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;

•Turmoil and volatility in the financial services industry, including failures or rumors of failures of other depository institutions, which could affect the ability of depository institutions, including U.S. Bank National Association, to attract and retain depositors, and could affect the ability of financial services providers, including U.S. Bancorp, to borrow or raise capital;

•Increases in FDIC assessments, including due to bank failures;

•Actions taken by governmental agencies to stabilize the financial system and the effectiveness of such actions;

•Uncertainty regarding the content, timing and impact of changes to regulatory capital, liquidity and resolution-related requirements applicable to large banking organizations in response to adverse developments affecting the banking sector;

•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 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;

•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 competition from both banks and non-banks;

•Effects of climate change and related physical and transition risks;

•Changes in customer behavior and preferences and the ability to implement technological changes to respond to customer needs and meet competitive demands;

•Breaches in data security;

•Failures or disruptions in or breaches of U.S. Bancorp’s operational, technology or 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;

•Impacts of supply chain disruptions, rising inflation, slower growth or a recession;

•Failure to execute on strategic or operational plans;

•Effects of mergers and acquisitions and related integration;

•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, liquidity risk and reputation 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, 2023, 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, U.S. Bancorp (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

•Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology, and

•Return on tangible common equity.

These 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 measures are not defined in generally accepted accounting principles (“GAAP”) or are not currently effective or defined in banking regulations. In addition, certain of these measures differ from currently effective capital ratios defined by banking regulations principally in that the currently effective ratios, which are subject to certain transitional provisions, temporarily exclude the full impact of the 2020 adoption of accounting guidance related to impairment of financial instruments based on the current expected credit losses methodology. As a result, these measures disclosed by the Company may be considered non-GAAP financial measures. Management believes this information helps investors assess trends in the Company’s capital 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, tangible efficiency ratio, net interest margin, and tax rate.

The adjusted return on average assets, adjusted return on tangible common equity, adjusted efficiency ratio, adjusted noninterest income, adjusted noninterest expense, adjusted net income, adjusted diluted earnings per common share, and adjusted operating leverage exclude notable items. Management uses these measures in their analysis of the Company’s performance and believes these measures provide a greater understanding of ongoing operations and enhance comparability of results with prior periods.

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.

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

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

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

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

(1)Notable items of $109 million ($82 million net-of-tax) for the three months ended December 31, 2024 included lease impairments and operational efficiency actions. Notable items of $1.1 billion ($780 million net-of-tax, including a $70 million discrete tax benefit) for the three months ended December 31, 2023 included $(118) million of noninterest income related to investment securities balance sheet repositioning and capital management actions, $171 million of merger and integration-related charges, $734 million of FDIC special assessment charges and a $110 million charitable contribution.

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

(3)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.

(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.

(3)Notable items of $400 million ($300 million net-of-tax) for the year ended December 31, 2024 included $109 million of lease impairments and operational efficiency actions, $155 million of merger and integration-related charges and $136 million for the increase in the FDIC special assessment. Notable items of $2.2 billion ($1.6 billion net-of-tax, including a $70 million discrete tax benefit) for the year ended December 31, 2023 included $(140) million of noninterest income related to investment securities balance sheet repositioning and capital management actions, $1.0 billion of merger and integration-related charges, $734 million of FDIC special assessment charges, a $110 million charitable contribution and $243 million of provision for credit losses related to balance sheet repositioning and capital management actions.