Accelerating revenue growth led by continued loan growth and net interest margin expansion
Reported results included a negative $0.02 impact from certain items on page 2
CINCINNATI–(BUSINESS WIRE)–Fifth Third Bancorp (NASDAQ: FITB):
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Key Financial Data |
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Key Highlights |
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$ in millions for all balance sheet and income statement items |
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2Q25 |
1Q25 |
2Q24 |
Stability:
Profitability:
Growth:
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Income Statement Data |
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Net income available to common shareholders |
$591 |
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$478 |
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$561 |
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Net interest income (U.S. GAAP) |
1,495 |
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1,437 |
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1,387 |
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Net interest income (FTE)(a) |
1,500 |
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1,442 |
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1,393 |
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Noninterest income |
750 |
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694 |
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695 |
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Noninterest expense |
1,264 |
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1,304 |
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1,221 |
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Per Share Data |
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Earnings per share, basic |
$0.88 |
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$0.71 |
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$0.82 |
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Earnings per share, diluted |
0.88 |
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0.71 |
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0.81 |
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Book value per share |
28.47 |
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27.41 |
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25.13 |
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Tangible book value per share(a) |
20.98 |
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19.92 |
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17.75 |
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Balance Sheet & Credit Quality |
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Average portfolio loans and leases |
$123,071 |
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$121,272 |
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$116,891 |
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Average deposits |
163,575 |
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164,157 |
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167,194 |
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Accumulated other comprehensive loss |
(3,546) |
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(3,895) |
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(4,901) |
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Net charge-off ratio(b) |
0.45 |
% |
0.46 |
% |
0.49 |
% |
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Nonperforming asset ratio(c) |
0.72 |
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0.81 |
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0.55 |
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Financial Ratios |
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Return on average assets |
1.20 |
% |
0.99 |
% |
1.14 |
% |
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Return on average common equity |
12.8 |
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10.8 |
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13.6 |
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Return on average tangible common equity(a) |
17.6 |
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15.2 |
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19.8 |
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CET1 capital(d)(e) |
10.56 |
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10.43 |
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10.62 |
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Net interest margin(a) |
3.12 |
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3.03 |
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2.88 |
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Efficiency(a) |
56.2 |
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61.0 |
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58.5 |
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Other than the Quarterly Financial Review tables beginning on page 13, commentary is on a fully taxable-equivalent (FTE) basis unless otherwise noted. Consistent with SEC guidance in Regulation S-K that contemplates the calculation of tax-exempt income on a taxable-equivalent basis, net interest income, net interest margin, net interest rate spread, total revenue and the efficiency ratio are provided on an FTE basis. |
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From Tim Spence, Fifth Third Chairman, CEO and President: |
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Fifth Third’s financial results once again underscore our strong balance sheet, diverse revenue streams, and disciplined expense management. We’ve expanded our net interest margin, improved credit metrics, and strengthened our efficiency ratio.
Our ongoing investments in strategic growth priorities continue to drive robust results. In the second quarter, adjusted revenues and adjusted PPNR increased year-over-year by 6% and 10%, respectively, marking the highest growth rate in the past two years. Our balance sheet remains well-diversified and neutrally positioned. This quarter, we accreted 13 basis points of CET1 capital and grew tangible book value per share by 18% over the past year.
By focusing on developing the capabilities to generate high-quality deposits, diversified loan originations, recurring fee revenue and consistent improvements in operating scalability, we expect to continue to generate strong, stable returns for our long-term shareholders during volatile environments.
As we move forward, we will continue to adhere to our operating principles of stability, profitability, and growth – in that order.
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Income Statement Highlights |
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($ in millions, except per share data) |
For the Three Months Ended |
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% Change |
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June |
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March |
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June |
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2025 |
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2025 |
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2024 |
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Seq |
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Yr/Yr |
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Condensed Statements of Income |
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Net interest income (NII)(a) |
$1,500 |
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$1,442 |
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$1,393 |
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4 |
% |
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8 |
% |
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Provision for credit losses |
173 |
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174 |
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97 |
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(1 |
)% |
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78 |
% |
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Noninterest income |
750 |
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694 |
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695 |
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8 |
% |
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8 |
% |
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Noninterest expense |
1,264 |
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1,304 |
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1,221 |
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(3 |
)% |
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4 |
% |
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Income before income taxes(a) |
$813 |
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$658 |
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$770 |
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24 |
% |
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6 |
% |
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Taxable equivalent adjustment |
$5 |
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$5 |
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$6 |
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— |
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(17 |
)% |
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Applicable income tax expense |
180 |
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138 |
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163 |
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30 |
% |
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10 |
% |
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Net income |
$628 |
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$515 |
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$601 |
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22 |
% |
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4 |
% |
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Dividends on preferred stock |
37 |
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37 |
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40 |
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— |
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(8 |
)% |
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Net income available to common shareholders |
$591 |
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$478 |
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$561 |
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24 |
% |
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5 |
% |
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Earnings per share, diluted |
$0.88 |
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$0.71 |
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$0.81 |
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24 |
% |
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9 |
% |
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Fifth Third Bancorp (NASDAQ®: FITB) today reported second quarter 2025 net income available to common shareholders of $591 million, or $0.88 per diluted share, compared to $478 million, or $0.71 per diluted share, in the prior quarter and $561 million, or $0.81 per diluted share, in the year-ago quarter.
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Diluted earnings per share impact of certain item(s) – 2Q25 |
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(after-tax impact; $ in millions, except per share data) |
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Severance expense (noninterest expense)(f) |
$(11 |
) |
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Valuation of Visa total return swap (noninterest income)(f) |
$(1 |
) |
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After-tax impact(f) of certain item(s) |
$(12 |
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Diluted earnings per share impact of certain item(s)1 |
$(0.02 |
) |
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Totals may not foot due to rounding; 1Diluted earnings per share impact reflects 674.034 million average diluted shares outstanding |
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Net Interest Income |
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(FTE; $ in millions)(a) |
For the Three Months Ended |
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% Change |
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June |
March |
June |
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2025 |
2025 |
2024 |
Seq |
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Yr/Yr |
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Interest Income |
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Interest income |
$2,489 |
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$2,437 |
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$2,626 |
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2 |
% |
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(5 |
)% |
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Interest expense |
989 |
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995 |
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1,233 |
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(1 |
)% |
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(20 |
)% |
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Net interest income (NII) |
$1,500 |
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$1,442 |
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$1,393 |
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4 |
% |
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8 |
% |
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NII excluding certain items(a) |
$1,500 |
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$1,442 |
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$1,398 |
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4 |
% |
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7 |
% |
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Average Yield/Rate Analysis |
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bps Change |
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Yield on interest-earning assets |
5.18 |
% |
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5.13 |
% |
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5.43 |
% |
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5 |
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(25 |
) |
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Rate paid on interest-bearing liabilities |
2.78 |
% |
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2.80 |
% |
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3.39 |
% |
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(2 |
) |
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(61 |
) |
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Ratios |
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Net interest rate spread |
2.40 |
% |
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2.33 |
% |
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2.04 |
% |
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7 |
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36 |
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Net interest margin (NIM) |
3.12 |
% |
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3.03 |
% |
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2.88 |
% |
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9 |
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24 |
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NIM excluding certain items(a) |
3.12 |
% |
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3.03 |
% |
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2.89 |
% |
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9 |
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23 |
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Compared to the prior quarter, NII increased $58 million, or 4%. This improvement primarily reflects higher average loan balances, fixed-rate asset repricing and strategic deposit management actions decreasing the cost of interest-bearing deposits. NII included a $14 million benefit in the quarter associated with the payoff of a partially charged-off commercial loan previously classified as nonaccrual. These same factors, coupled with the continued normalization of cash and other short-term investment balances, contributed to the 9 bps increase in NIM.
Compared to the year-ago quarter, NII increased $107 million, or 8%, and NIM increased 24 bps. This improvement was due to the benefits from proactive deposit and wholesale funding management decreasing interest-bearing liabilities costs by 61 bps, improved earning asset mix, and the benefit of fixed-rate asset repricing, which more than offset the impact of lower market rates on floating rate assets.
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Noninterest Income |
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($ in millions) |
For the Three Months Ended |
% Change |
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June |
March |
June |
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2025 |
2025 |
2024 |
Seq |
Yr/Yr |
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Noninterest Income |
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Wealth and asset management revenue |
$166 |
$172 |
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$159 |
(3 |
)% |
4 |
% |
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Commercial payments revenue |
152 |
153 |
|
154 |
(1 |
)% |
(1 |
)% |
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Consumer banking revenue |
147 |
137 |
|
139 |
7 |
% |
6 |
% |
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Capital markets fees |
90 |
90 |
|
93 |
— |
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(3 |
)% |
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Commercial banking revenue |
79 |
80 |
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90 |
(1 |
)% |
(12 |
)% |
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Mortgage banking net revenue |
56 |
57 |
|
50 |
(2 |
)% |
12 |
% |
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Other noninterest income |
44 |
14 |
|
7 |
214 |
% |
529 |
% |
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Securities gains (losses), net |
16 |
(9 |
) |
3 |
NM |
|
433 |
% |
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Total noninterest income |
$750 |
$694 |
|
$695 |
8 |
% |
8 |
% |
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Reported noninterest income increased $56 million, or 8%, from the prior quarter, and increased $55 million, or 8%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below, including the mark-to-market on the valuation of the Visa total return swap and securities gains/losses which incorporate mark-to-market impacts from securities associated with non-qualified deferred compensation plans that are more than offset in noninterest expense.
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Noninterest Income excluding certain items |
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($ in millions) |
For the Three Months Ended |
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June |
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March |
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June |
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% Change |
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2025 |
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2025 |
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2024 |
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Seq |
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Yr/Yr |
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Noninterest Income excluding certain items |
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Noninterest income (U.S. GAAP) |
$750 |
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$694 |
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$695 |
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Valuation of Visa total return swap |
1 |
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18 |
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23 |
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Legal settlements and remediations |
— |
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— |
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2 |
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Securities (gains) losses, net |
(16 |
) |
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9 |
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(3 |
) |
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Noninterest income excluding certain items(a) |
$735 |
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|
$721 |
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$717 |
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2 |
% |
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3 |
% |
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Noninterest income excluding certain items increased $14 million, or 2%, compared to the prior quarter, and increased $18 million, or 3%, from the year-ago quarter.
Wealth and asset management revenue decreased $6 million, or 3% sequentially, due to seasonal tax-related revenue in the prior quarter. Commercial payments revenue decreased $1 million, or 1%, due to higher earnings credits. Consumer banking revenue increased $10 million, or 7%, driven by card and processing revenue and deposit fees. Capital markets fees were stable, reflecting decreases in client financial risk management and corporate bond fees, offset by increases in equity capital markets and M&A advisory revenue. The increase in other noninterest income was driven by seasonal equity fund investment income and the Visa total return swap.
Compared to the year-ago quarter, wealth and asset management revenue increased $7 million, or 4%, primarily reflecting an increase in personal asset management revenue due to AUM growth. Commercial payments revenue decreased $2 million, or 1%, driven by higher earnings credits and lower commercial card fees, partially offset by higher deposit fees. Consumer banking revenue increased $8 million, or 6%, primarily driven by deposit fees. Capital markets fees decreased $3 million, or 3%, reflecting a decrease in M&A advisory and client financial risk management, partially offset by higher loan syndication revenue. Commercial banking revenue decreased $11 million, or 12%, primarily reflecting lower business lending fees and the continued decrease in operating lease revenue. Mortgage banking net revenue increased $6 million, or 12%, due to the prior year loss on MSR net valuation adjustments not recurring in the current quarter.
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Noninterest Expense |
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($ in millions) |
For the Three Months Ended |
% Change |
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June |
March |
June |
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2025 |
2025 |
2024 |
Seq |
Yr/Yr |
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Noninterest Expense |
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Compensation and benefits |
$698 |
$750 |
$656 |
(7 |
)% |
6 |
% |
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|
Technology and communications |
126 |
123 |
114 |
2 |
% |
11 |
% |
|
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|
Net occupancy expense |
83 |
87 |
83 |
(5 |
)% |
— |
|
|
|
|
Equipment expense |
41 |
42 |
38 |
(2 |
)% |
8 |
% |
|
|
|
Loan and lease expense |
36 |
30 |
33 |
20 |
% |
9 |
% |
|
|
|
Marketing expense |
43 |
28 |
34 |
54 |
% |
26 |
% |
|
|
|
Card and processing expense |
22 |
21 |
21 |
5 |
% |
5 |
% |
|
|
|
Other noninterest expense |
215 |
223 |
242 |
(4 |
)% |
(11 |
)% |
|
|
|
Total noninterest expense |
$1,264 |
$1,304 |
$1,221 |
(3 |
)% |
4 |
% |
|
|
|
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Reported noninterest expense decreased $40 million, or 3%, from the prior quarter, and increased $43 million, or 4%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below.
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Noninterest Expense excluding certain item(s) |
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($ in millions) |
For the Three Months Ended |
|
% Change |
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June |
|
March |
|
June |
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|
2025 |
|
2025 |
|
2024 |
|
Seq |
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Yr/Yr |
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Noninterest Expense excluding certain item(s) |
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||||
|
|
Noninterest expense (U.S. GAAP) |
$1,264 |
|
|
$1,304 |
|
|
$1,221 |
|
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|
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||
|
|
Severance expense |
(15 |
) |
|
— |
|
|
— |
|
|
|
|
|
|
||
|
|
Legal settlements and remediations |
— |
|
|
— |
|
|
(11 |
) |
|
|
|
|
|
||
|
|
FDIC special assessment |
— |
|
|
— |
|
|
(6 |
) |
|
|
|
|
|
||
|
|
Noninterest expense excluding certain item(s)(a) |
$1,249 |
|
|
$1,304 |
|
|
$1,204 |
|
|
(4 |
)% |
|
4 |
% |
|
Compared to the prior quarter, noninterest expense excluding certain items decreased $55 million, or 4%, primarily reflecting a seasonal decrease in compensation and benefits expense. Noninterest expense in the current quarter included a $16 million expense related to the mark-to-market impact of non-qualified deferred compensation compared to a $4 million benefit in the prior quarter, both of which were largely offset in net securities gains/losses through noninterest income.
Compared to the year-ago quarter, noninterest expense excluding certain items increased $45 million, or 4%. The year-ago quarter included an $3 million expense related to the mark-to-market impact of non-qualified deferred compensation, which was largely offset in net securities gains through noninterest income.
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Average Interest-Earning Assets |
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|
($ in millions) |
For the Three Months Ended |
|
% Change |
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|
June |
March |
June |
|
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|
|||||
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2025 |
2025 |
2024 |
Seq |
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Yr/Yr |
|
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Average Portfolio Loans and Leases |
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Commercial loans and leases: |
|
|
|
|
|
|
|
|
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|
||
|
|
Commercial and industrial loans |
$54,075 |
|
$53,401 |
|
$52,357 |
|
1 |
% |
|
3 |
% |
|
|
|
Commercial mortgage loans |
12,410 |
|
12,368 |
|
11,352 |
|
— |
|
|
9 |
% |
|
|
|
Commercial construction loans |
5,810 |
|
5,797 |
|
5,917 |
|
— |
|
|
(2 |
)% |
|
|
|
Commercial leases |
3,120 |
|
3,110 |
|
2,575 |
|
— |
|
|
21 |
% |
|
|
|
Total commercial loans and leases |
$75,415 |
|
$74,676 |
|
$72,201 |
|
1 |
% |
|
4 |
% |
|
|
|
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
||
|
|
Residential mortgage loans |
$17,615 |
|
$17,552 |
|
$17,004 |
|
— |
|
|
4 |
% |
|
|
|
Home equity |
4,383 |
|
4,222 |
|
3,929 |
|
4 |
% |
|
12 |
% |
|
|
|
Indirect secured consumer loans |
17,248 |
|
16,476 |
|
15,373 |
|
5 |
% |
|
12 |
% |
|
|
|
Credit card |
1,659 |
|
1,627 |
|
1,728 |
|
2 |
% |
|
(4 |
)% |
|
|
|
Solar energy installation loans |
4,268 |
|
4,221 |
|
3,916 |
|
1 |
% |
|
9 |
% |
|
|
|
Other consumer loans |
2,483 |
|
2,498 |
|
2,740 |
|
(1 |
)% |
|
(9 |
)% |
|
|
|
Total consumer loans |
$47,656 |
|
$46,596 |
|
$44,690 |
|
2 |
% |
|
7 |
% |
|
|
|
Total average portfolio loans and leases |
$123,071 |
|
$121,272 |
|
$116,891 |
|
1 |
% |
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Average Loans and Leases Held for Sale |
|
|
|
|
|
|
|
|
|
|
||
|
|
Commercial loans and leases held for sale |
$45 |
|
$64 |
|
$33 |
|
(30 |
)% |
|
36 |
% |
|
|
|
Consumer loans held for sale |
541 |
|
428 |
|
359 |
|
26 |
% |
|
51 |
% |
|
|
|
Total average loans and leases held for sale |
$586 |
|
$492 |
|
$392 |
|
19 |
% |
|
49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Total average loans and leases |
$123,657 |
|
$121,764 |
|
$117,283 |
|
2 |
% |
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Securities (taxable and tax-exempt) |
$56,243 |
|
$56,598 |
|
$56,607 |
|
(1 |
)% |
|
(1 |
)% |
|
|
|
Other short-term investments |
12,782 |
|
14,446 |
|
20,609 |
|
(12 |
)% |
|
(38 |
)% |
|
|
|
Total average interest-earning assets |
$192,682 |
$192,808 |
$194,499 |
|
— |
|
|
(1 |
)% |
|
||
Compared to the prior quarter, total average portfolio loans and leases increased 1%. Average commercial portfolio loans and leases increased 1%, primarily driven by increases in C&I loans. Average consumer portfolio loans increased 2%, primarily due to increases in indirect secured consumer and home equity loans.
Compared to the year-ago quarter, total average portfolio loans and leases increased 5%. Average commercial portfolio loans and leases increased 4%, primarily reflecting increases in C&I and commercial mortgage loans. Average consumer portfolio loans increased 7%, primarily due to increases in indirect secured consumer and residential mortgage loans.
Average securities (taxable and tax-exempt; amortized cost) of $56 billion in the current quarter decreased 1% compared to the prior and year-ago quarter. Average other short-term investments (including interest-bearing cash) of $13 billion in the current quarter decreased 12% compared to the prior quarter and decreased 38% compared to the year-ago quarter due to proactive liability management and increased lending activity.
Period-end commercial portfolio loans and leases of $74 billion decreased 1% compared to the prior quarter, primarily reflecting decreases in C&I and commercial construction loans. Compared to the year-ago quarter, period-end commercial portfolio loans and leases increased 3%, primarily due to increases in C&I and commercial mortgage loans.
Period-end consumer portfolio loans of $48 billion increased 3% compared to the prior quarter, primarily reflecting an increase in indirect secured consumer and home equity loans. Compared to the year-ago quarter, period-end consumer portfolio loans increased 8%, primarily driven by increases in indirect secured consumer, residential mortgage, and home equity loans.
Total period-end securities (taxable and tax-exempt; amortized cost) of $55 billion in the current quarter decreased 2% compared to the prior quarter and decreased 3% compared to the year-ago quarter. Period-end other short-term investments of approximately $13 billion decreased 13% compared to the prior quarter and decreased 38% compared to the year-ago quarter.
|
Average Deposits |
|
|
|
|
|
|
|
|
|
|
|||
|
|
($ in millions) |
For the Three Months Ended |
|
% Change |
|
||||||||
|
|
|
June |
March |
June |
|
|
|
|
|||||
|
|
|
2025 |
2025 |
2024 |
Seq |
|
Yr/Yr |
|
|||||
|
|
Average Deposits |
|
|
|
|
|
|
|
|
|
|
||
|
|
Demand |
$40,885 |
|
$39,788 |
|
$40,266 |
|
3 |
% |
|
2 |
% |
|
|
|
Interest checking |
56,738 |
|
57,964 |
|
58,156 |
|
(2 |
)% |
|
(2 |
)% |
|
|
|
Savings |
16,962 |
|
17,226 |
|
17,747 |
|
(2 |
)% |
|
(4 |
)% |
|
|
|
Money market |
36,296 |
|
36,453 |
|
35,511 |
|
— |
|
|
2 |
% |
|
|
|
Total transaction deposits |
$150,881 |
|
$151,431 |
|
$151,680 |
|
— |
|
|
(1 |
)% |
|
|
|
CDs $250,000 or less |
10,494 |
|
10,380 |
|
10,767 |
|
1 |
% |
|
(3 |
)% |
|
|
|
Total core deposits |
$161,375 |
|
$161,811 |
|
$162,447 |
|
— |
|
|
(1 |
)% |
|
|
|
CDs over $250,0001 |
2,200 |
|
2,346 |
|
4,747 |
|
(6 |
)% |
|
(54 |
)% |
|
|
|
Total average deposits |
$163,575 |
|
$164,157 |
|
$167,194 |
|
— |
|
|
(2 |
)% |
|
|
|
1CDs over $250,000 includes $1.1BN, $1.3BN, and $3.8BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 6/30/25, 3/31/25, and 6/30/24, respectively. |
|
|||||||||||
Compared to the prior quarter, total average deposits were stable, primarily reflecting modest increases in demand deposits and CDs $250,000 or less, offset by a decline in interest checking and savings balances. The growth in demand deposits is a result of our focus on improving our deposit mix and resulted in four consecutive quarters of declining deposit costs. Period-end total deposits decreased 1%.
Compared to the year-ago quarter, total average deposits decreased 2%, primarily driven by the continued reduction in brokered deposits and lower interest checking balances, partially offset by an increase in money market and demand deposits. Period-end total deposits decreased 2%.
The period-end portfolio loan-to-core deposit ratio was 76% in the current quarter, compared to 75% in the prior quarter and 72% in the year-ago quarter.
|
Average Wholesale Funding |
|
|
|
|
|
|
|
|
|
|
|||
|
|
($ in millions) |
For the Three Months Ended |
|
% Change |
|
||||||||
|
|
|
June |
March |
June |
|
|
|
|
|||||
|
|
|
2025 |
2025 |
2024 |
Seq |
|
Yr/Yr |
|
|||||
|
|
Average Wholesale Funding |
|
|
|
|
|
|
|
|
|
|
||
|
|
CDs over $250,0001 |
$2,200 |
|
$2,346 |
|
$4,747 |
|
(6 |
)% |
|
(54 |
)% |
|
|
|
Federal funds purchased |
206 |
|
194 |
|
230 |
|
6 |
% |
|
(10 |
)% |
|
|
|
Securities sold under repurchase agreements |
353 |
|
286 |
|
373 |
|
23 |
% |
|
(5 |
)% |
|
|
|
FHLB advances |
4,976 |
|
4,767 |
|
3,165 |
|
4 |
% |
|
57 |
% |
|
|
|
Derivative collateral and other secured borrowings |
89 |
|
84 |
|
54 |
|
6 |
% |
|
65 |
% |
|
|
|
Long-term debt |
14,599 |
|
14,585 |
|
15,611 |
|
— |
|
|
(6 |
)% |
|
|
|
Total average wholesale funding |
$22,423 |
|
$22,262 |
|
$24,180 |
|
1 |
% |
|
(7 |
)% |
|
|
|
1CDs over $250,000 includes $1.1BN, $1.3BN, and $3.8BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 6/30/25, 3/31/25, and 6/30/24, respectively. |
|
|||||||||||
Compared to the prior quarter, average wholesale funding increased 1%, driven in part by higher short-term FHLB advances and securities sold under repurchase agreements, partially offset by a reduction in CDs over $250,000. The 7% decrease in average wholesale funding compared to the year-ago quarter was primarily due to lower balances in CDs over $250,000 and long-term debt, partially offset by increased utilization of short-term FHLB advances.
|
Credit Quality Summary |
|
|
|
|
|
|
|
|
|
|
|||||
|
($ in millions) |
As of and For the Three Months Ended |
||||||||||||||
|
June |
|
March |
|
December |
|
September |
|
June |
|
||||||
|
|
2025 |
|
2025 |
|
2024 |
|
2024 |
|
2024 |
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total nonaccrual portfolio loans and leases (NPLs) |
$853 |
|
|
$966 |
|
|
$823 |
|
|
$686 |
|
|
$606 |
|
|
|
Repossessed property |
8 |
|
|
9 |
|
|
9 |
|
|
11 |
|
|
9 |
|
|
|
OREO |
25 |
|
|
21 |
|
|
21 |
|
|
28 |
|
|
28 |
|
|
|
Total nonperforming portfolio loans and leases and OREO (NPAs) |
$886 |
|
|
$996 |
|
|
$853 |
|
|
$725 |
|
|
$643 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
NPL ratio(g) |
0.70 |
% |
|
0.79 |
% |
|
0.69 |
% |
|
0.59 |
% |
|
0.52 |
% |
|
|
NPA ratio(c) |
0.72 |
% |
|
0.81 |
% |
|
0.71 |
% |
|
0.62 |
% |
|
0.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Portfolio loans and leases 30-89 days past due (accrual) |
$277 |
|
|
$385 |
|
|
$303 |
|
|
$283 |
|
|
$302 |
|
|
|
Portfolio loans and leases 90 days past due (accrual) |
34 |
|
|
33 |
|
|
32 |
|
|
40 |
|
|
33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
30-89 days past due as a % of portfolio loans and leases |
0.23 |
% |
|
0.31 |
% |
|
0.25 |
% |
|
0.24 |
% |
|
0.26 |
% |
|
|
90 days past due as a % of portfolio loans and leases |
0.03 |
% |
|
0.03 |
% |
|
0.03 |
% |
|
0.03 |
% |
|
0.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Allowance for loan and lease losses (ALLL), beginning |
$2,384 |
|
|
$2,352 |
|
|
$2,305 |
|
|
$2,288 |
|
|
$2,318 |
|
|
|
Total net losses charged-off |
(139 |
) |
|
(136 |
) |
|
(136 |
) |
|
(142 |
) |
|
(144 |
) |
|
|
Provision for loan and lease losses |
167 |
|
|
168 |
|
|
183 |
|
|
159 |
|
|
114 |
|
|
|
ALLL, ending |
$2,412 |
|
|
$2,384 |
|
|
$2,352 |
|
|
$2,305 |
|
|
$2,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Reserve for unfunded commitments, beginning |
$140 |
|
|
$134 |
|
|
$138 |
|
|
$137 |
|
|
$154 |
|
|
|
Provision for (benefit from) the reserve for unfunded commitments |
6 |
|
|
6 |
|
|
(4 |
) |
|
1 |
|
|
(17 |
) |
|
|
Reserve for unfunded commitments, ending |
$146 |
|
|
$140 |
|
|
$134 |
|
|
$138 |
|
|
$137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total allowance for credit losses (ACL) |
$2,558 |
|
|
$2,524 |
|
|
$2,486 |
|
|
$2,443 |
|
|
$2,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
ACL ratios: |
|
|
|
|
|
|
|
|
|
|
|||||
|
As a % of portfolio loans and leases |
2.09 |
% |
|
2.07 |
% |
|
2.08 |
% |
|
2.09 |
% |
|
2.08 |
% |
|
|
As a % of nonperforming portfolio loans and leases |
300 |
% |
|
261 |
% |
|
302 |
% |
|
356 |
% |
|
400 |
% |
|
|
As a % of nonperforming portfolio assets |
289 |
% |
|
253 |
% |
|
291 |
% |
|
337 |
% |
|
377 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
ALLL as a % of portfolio loans and leases |
1.97 |
% |
|
1.95 |
% |
|
1.96 |
% |
|
1.98 |
% |
|
1.96 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total losses charged-off |
$(194 |
) |
|
$(173 |
) |
|
$(175 |
) |
|
$(183 |
) |
|
$(182 |
) |
|
|
Total recoveries of losses previously charged-off |
55 |
|
|
37 |
|
|
39 |
|
|
41 |
|
|
38 |
|
|
|
Total net losses charged-off |
$(139 |
) |
|
$(136 |
) |
|
$(136 |
) |
|
$(142 |
) |
|
$(144 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net charge-off ratio (NCO ratio)(b) |
0.45 |
% |
|
0.46 |
% |
|
0.46 |
% |
|
0.48 |
% |
|
0.49 |
% |
|
|
Commercial NCO ratio |
0.38 |
% |
|
0.35 |
% |
|
0.32 |
% |
|
0.40 |
% |
|
0.45 |
% |
|
|
Consumer NCO ratio |
0.56 |
% |
|
0.63 |
% |
|
0.68 |
% |
|
0.62 |
% |
|
0.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
The provision for credit losses totaled $173 million in the current quarter and the ACL ratio represented 2.09% of total portfolio loans and leases at quarter end, consistent with 2.07% in the prior quarter and 2.08% in the year-ago period. The ACL covered 300% of nonperforming portfolio loans and leases and 289% of nonperforming portfolio assets.
Net charge-offs totaled $139 million in the current quarter, up $3 million from the prior quarter and the NCO ratio decreased 1 bp to 0.45%. Commercial net charge-offs were $71 million, with a commercial NCO ratio of 0.38%, up 3 bps from the prior quarter. Consumer net charge-offs were $68 million, with a consumer NCO ratio of 0.56%, down 7 bps sequentially.
Compared to the year-ago quarter, net charge-offs decreased $5 million and the NCO ratio decreased 4 bps. The commercial NCO ratio decreased 7 bps, and the consumer NCO ratio decreased 1 bps compared to the prior year.
Nonperforming portfolio loans and leases declined to $853 million in the current quarter, representing an NPL ratio of 0.70%, down from 0.79% in the prior quarter and up from 0.52% in the year-ago quarter.
Nonperforming portfolio assets totaled $886 million in the current quarter, resulting in an NPA ratio of 0.72%, compared to 0.81% in the prior quarter and 0.55% in the year-ago quarter.
|
|
Capital Position |
|
|
|
|
|
|
|
|||||
|
|
|
As of and For the Three Months Ended |
|||||||||||
|
|
|
|
June |
March |
December |
September |
June |
||||||
|
|
|
|
2025 |
2025 |
2024 |
2024 |
2024 |
||||||
|
|
Capital Position |
|
|
|
|
|
|
|
|||||
|
|
Average total Bancorp shareholders’ equity as a % of average assets |
|
9.82 |
% |
9.50 |
% |
9.40 |
% |
9.47 |
% |
8.80 |
% |
|
|
|
Tangible equity(a) |
|
9.39 |
% |
9.07 |
% |
9.02 |
% |
8.99 |
% |
8.91 |
% |
|
|
|
Tangible common equity (excluding AOCI)(a) |
|
8.38 |
% |
8.07 |
% |
8.03 |
% |
8.00 |
% |
7.92 |
% |
|
|
|
Tangible common equity (including AOCI)(a) |
|
6.84 |
% |
6.40 |
% |
6.02 |
% |
6.52 |
% |
5.80 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Regulatory Capital Ratios(d)(e) |
|
|
|
|
|
|
|
|||||
|
|
CET1 capital |
|
10.56 |
% |
10.43 |
% |
10.57 |
% |
10.75 |
% |
10.62 |
% |
|
|
|
Tier 1 risk-based capital |
|
11.83 |
% |
11.71 |
% |
11.86 |
% |
12.07 |
% |
11.93 |
% |
|
|
|
Total risk-based capital |
|
13.75 |
% |
13.63 |
% |
13.86 |
% |
14.13 |
% |
13.95 |
% |
|
|
|
Leverage |
|
9.42 |
% |
9.23 |
% |
9.22 |
% |
9.11 |
% |
9.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Contacts
Investor contact: Matt Curoe (513) 534-2345 | Media contact: Jennifer Hendricks Sullivan (614) 744-7693
