Strong revenue growth and expense discipline drives 4th consecutive quarter of positive operating leverage
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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3Q25 |
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2Q25 |
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3Q24 |
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Stability:
Profitability:
Growth:
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Income Statement Data |
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Net income available to common shareholders |
$608 |
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$591 |
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$532 |
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|
Net interest income (U.S. GAAP) |
1,520 |
|
1,495 |
|
1,421 |
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Net interest income (FTE)(a) |
1,525 |
|
1,500 |
|
1,427 |
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Noninterest income |
781 |
|
750 |
|
711 |
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Noninterest expense |
1,267 |
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1,264 |
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1,244 |
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Per Share Data |
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Earnings per share, basic |
$0.91 |
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$0.88 |
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$0.78 |
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Earnings per share, diluted |
0.91 |
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0.88 |
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0.78 |
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Book value per share |
29.26 |
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28.47 |
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27.60 |
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Tangible book value per share(a) |
21.66 |
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20.98 |
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20.20 |
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Balance Sheet & Credit Quality |
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Average portfolio loans and leases |
$123,326 |
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$123,071 |
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$116,826 |
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Average deposits |
164,754 |
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163,575 |
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167,196 |
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Accumulated other comprehensive loss |
(3,276) |
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(3,546) |
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(3,446) |
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Net charge-off ratio(b) |
1.09 |
% |
0.45 |
% |
0.48 |
% |
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Nonperforming asset ratio(c) |
0.65 |
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0.72 |
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0.62 |
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Financial Ratios |
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Return on average assets |
1.21 |
% |
1.20 |
% |
1.06 |
% |
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Return on average common equity |
12.6 |
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12.8 |
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11.7 |
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Return on average tangible common equity(a) |
17.3 |
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17.6 |
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16.3 |
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CET1 capital(d)(e) |
10.54 |
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10.58 |
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10.75 |
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Net interest margin(a) |
3.13 |
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3.12 |
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2.90 |
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Efficiency(a) |
54.9 |
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56.2 |
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58.2 |
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Other than the Quarterly Financial Review tables beginning on page 14, 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: |
Fifth Third’s financial results once again underscore our strong balance sheet, diverse revenue streams, and disciplined expense management. We’ve continued to expand our net interest margin, improve our pre-provision net revenue, and strengthen our efficiency ratio.
Our ongoing investments in strategic growth priorities continue to drive robust results. In the third quarter, adjusted PPNR increased 6% sequentially and 11% year-over-year, marking the highest annual growth rate in over two years. Our balance sheet remains well-diversified and neutrally positioned. Our strong returns on capital enabled $300 million of share repurchases in the quarter and a 7% increase in tangible book value per share over the past year.
By focusing on high-quality deposits, diversified loan originations, recurring fee revenue and consistent improvements in operating scalability, we expect to continue to generate strong, stable through-the-cycle returns for our long-term shareholders.
As we move forward, we will continue to adhere to our operating principles of stability, profitability, and growth – in that order.
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Income Statement Highlights |
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($ in millions, except per share data) |
For the Three Months Ended |
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% Change |
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September |
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June |
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September |
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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) |
$1,525 |
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$1,500 |
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$1,427 |
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2% |
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7% |
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Provision for credit losses |
197 |
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173 |
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160 |
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14% |
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23% |
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Noninterest income |
781 |
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750 |
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711 |
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4% |
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10% |
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Noninterest expense |
1,267 |
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1,264 |
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1,244 |
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— |
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2% |
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Income before income taxes(a) |
$842 |
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$813 |
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$734 |
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4% |
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15% |
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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 |
188 |
|
180 |
|
155 |
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4% |
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21% |
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Net income |
$649 |
|
$628 |
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$573 |
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3% |
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13% |
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Dividends on preferred stock |
41 |
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37 |
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41 |
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11% |
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— |
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Net income available to common shareholders |
$608 |
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$591 |
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$532 |
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3% |
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14% |
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Earnings per share, diluted |
$0.91 |
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$0.88 |
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$0.78 |
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3% |
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17% |
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Fifth Third Bancorp (NASDAQ®: FITB) today reported third quarter 2025 net income available to common shareholders of $608 million, or $0.91 per diluted share, compared to $591 million, or $0.88 per diluted share, in the prior quarter and $532 million, or $0.78 per diluted share, in the year-ago quarter. On September 30, 2025, Fifth Third redeemed all of its outstanding Series L Preferred Stock, which resulted in a reduction to net income to common shareholders of $3.5 million, recorded as an incremental preferred dividend.
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Diluted earnings per share impact of certain item(s) – 3Q25 |
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(after-tax impact; $ in millions, except per share data) |
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Interchange litigation matters(f)1 |
$(21) |
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FDIC special assessment (noninterest expense)(f) |
5 |
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After-tax impact(f) of certain item(s) |
$(16) |
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Diluted earnings per share impact of certain item(s)2 |
$(0.02) |
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1Interchange litigation matters decreased noninterest income by $18 million and increased noninterest expense by $9 million |
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Totals may not foot due to rounding; 2Diluted earnings per share impact reflects 670.878 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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September |
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June |
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September |
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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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Interest Income |
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Interest income |
$2,524 |
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$2,489 |
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$2,675 |
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1 |
% |
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(6 |
)% |
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Interest expense |
999 |
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|
989 |
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1,248 |
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1 |
% |
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(20 |
)% |
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|
Net interest income (NII) |
$1,525 |
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|
$1,500 |
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$1,427 |
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2 |
% |
|
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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5.18% |
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5.43% |
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— |
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(25 |
) |
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Rate paid on interest-bearing liabilities |
2.77% |
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2.78% |
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3.38% |
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(1 |
) |
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(61 |
) |
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Ratios |
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Net interest rate spread |
2.41% |
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2.40% |
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2.05% |
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1 |
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36 |
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Net interest margin (NIM) |
3.13% |
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3.12% |
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2.90% |
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1 |
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23 |
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Fully-taxable equivalent (FTE) NII of $1.525 billion increased $25 million, or 2% compared to the prior quarter. This improvement primarily reflects improved earning asset mix, fixed-rate asset repricing and strategic management actions decreasing the cost of interest-bearing liabilities. These same factors contributed to the 1 bp increase in NIM. NII in the prior quarter benefited $14 million from the payoff of a partially charged-off commercial loan, excluding this benefit, NII increased $39 million, or 3%, and NIM increased 4 bps.
Compared to the year-ago quarter, NII increased $98 million, or 7%, and NIM increased 23 bps. This improvement was due to the benefits from proactive deposit and wholesale funding management decreasing interest-bearing liabilities costs by 61 bps, improved earning asset mix, and the benefit of fixed-rate asset repricing.
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Noninterest Income |
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($ in millions) |
For the Three Months Ended |
% Change |
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September |
June |
September |
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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 |
$181 |
$166 |
$163 |
9% |
11% |
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Commercial payments revenue |
157 |
152 |
154 |
3% |
2% |
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Consumer banking revenue |
144 |
147 |
143 |
(2)% |
1% |
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|
Capital markets fees |
115 |
90 |
111 |
28% |
4% |
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Commercial banking revenue |
87 |
79 |
93 |
10% |
(6)% |
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|
Mortgage banking net revenue |
58 |
56 |
50 |
4% |
16% |
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|
Other noninterest income (loss) |
29 |
44 |
(13) |
(34)% |
NM |
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|
Securities gains, net |
10 |
16 |
10 |
(38)% |
— |
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Total noninterest income |
$781 |
$750 |
$711 |
4% |
10% |
|
Noninterest income of $781 million increased $31 million, or 4%, from the prior quarter, and increased $70 million, or 10%, from the year-ago quarter. The reported results reflect the impact of certain items in the table below, including interchange litigation matters and the securities gains/losses which incorporate mark-to-market impacts from securities associated with non-qualified deferred compensation plans that are more than offset in noninterest expense.
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Noninterest Income excluding certain items |
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($ in millions) |
For the Three Months Ended |
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% Change |
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September |
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June |
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|
September |
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|||
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2025 |
|
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) |
$781 |
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|
$750 |
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|
$711 |
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Interchange litigation matters |
18 |
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1 |
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|
47 |
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Securities (gains) losses, net |
(10) |
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(16) |
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(10) |
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Noninterest income excluding certain items(a) |
$789 |
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|
$735 |
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|
$748 |
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7% |
|
5% |
|
Noninterest income excluding certain items of $789 million increased $54 million, or 7%, compared to the prior quarter, and increased $41 million, or 5%, from the year-ago quarter.
Wealth and asset management revenue increased $15 million, or 9% sequentially, due to increases in personal asset management revenue and brokerage fees. Commercial payments revenue increased $5 million, or 3%, driven by deposit fees and Newline revenue, partially offset by higher earnings credits. Capital markets fees were up $25 million, or 28%, reflecting a strong rebound in loan syndications and M&A advisory revenue.
Compared to the year-ago quarter, wealth and asset management revenue increased $18 million, or 11%, with 12% year-over-year AUM growth driving increases in personal asset management revenue and brokerage fees. Commercial payments revenue increased $3 million, or 2%, primarily due to higher deposit fees. Capital markets fees increased $4 million, or 4%, driven by higher loan syndications and M&A advisory revenue, partially offset by lower corporate bond fees. Commercial banking revenue decreased $6 million, or 6%, primarily reflecting lower operating lease and lease syndication revenue. Mortgage banking net revenue increased $8 million, or 16%, due to the prior year loss on MSR net valuation adjustments not recurring in the current quarter.
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Noninterest Expense |
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|
($ in millions) |
For the Three Months Ended |
% Change |
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|
September |
June |
September |
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|
2025 |
2025 |
2024 |
Seq |
Yr/Yr |
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Noninterest Expense |
|
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Compensation and benefits |
$685 |
$698 |
$690 |
(2)% |
(1)% |
|
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|
Technology and communications |
128 |
126 |
121 |
2% |
6% |
|
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|
Net occupancy expense |
89 |
83 |
81 |
7% |
10% |
|
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|
Equipment expense |
44 |
41 |
38 |
7% |
16% |
|
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|
Loan and lease expense |
39 |
36 |
34 |
8% |
15% |
|
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|
Marketing expense |
34 |
43 |
26 |
(21)% |
31% |
|
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|
Card and processing expense |
22 |
22 |
22 |
— |
— |
|
|
|
Other noninterest expense |
226 |
215 |
232 |
5% |
(3)% |
|
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|
Total noninterest expense |
$1,267 |
$1,264 |
$1,244 |
— |
2% |
|
Noninterest expense of $1.267 billion remained stable from the prior quarter, and increased 2% from the year-ago quarter. The reported results reflect the impact of certain items in the table below.
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Noninterest Expense excluding certain item(s) |
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($ in millions) |
For the Three Months Ended |
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% Change |
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September |
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June |
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|
September |
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|
2025 |
|
2025 |
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2024 |
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Seq |
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Yr/Yr |
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|
Noninterest Expense excluding certain item(s) |
|
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|
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|
|
|
Noninterest expense (U.S. GAAP) |
$1,267 |
|
|
$1,264 |
|
|
$1,244 |
|
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|
|
|
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|
|
Interchange litigation matters |
(9) |
|
|
— |
|
|
(10) |
|
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|
|
|
|
|
Severance expense |
— |
|
|
(15) |
|
|
(9) |
|
|
|
|
|
|
|
|
FDIC special assessment |
6 |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
Noninterest expense excluding certain item(s)(a) |
$1,264 |
|
|
$1,249 |
|
|
$1,225 |
|
|
1% |
|
3% |
|
|
|
Non-qualified deferred compensation (expense)/benefit |
(11) |
|
|
(16) |
|
|
(10) |
|
|
|
|
|
|
|
|
Noninterest expense excluding certain item(s) and non-qualified deferred compensation(a) |
$1,253 |
|
|
$1,233 |
|
|
$1,215 |
|
|
2% |
|
3% |
|
Noninterest expense excluding certain items and non-qualified deferred compensation of $1.253 billion increased $20 million or 2% compared to the prior quarter with increases in equipment and occupancy, partially offset by lower marketing expense.
Compared to the year-ago quarter, noninterest expense excluding certain items and non-qualified deferred compensation increased $38 million, or 3% due primarily to increases in equipment and occupancy, marketing, and technology expense.
Expenses related to the mark-to-market impact of non-qualified deferred compensation were largely offset in net securities gains/losses through noninterest income in the current and prior periods.
|
|
Average Interest-Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
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|
|
September |
|
June |
|
September |
|
|
|
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|
|||
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|
2025 |
|
2025 |
|
2024 |
|
Seq |
|
Yr/Yr |
|
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|
|
Average Portfolio Loans and Leases |
|
|
|
|
|
|
|
|
|
|
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|
|
Commercial loans and leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans |
$54,170 |
|
|
$54,075 |
|
|
$51,615 |
|
|
— |
|
5% |
|
|
|
Commercial mortgage loans |
12,027 |
|
|
12,410 |
|
|
11,488 |
|
|
(3)% |
|
5% |
|
|
|
Commercial construction loans |
5,541 |
|
|
5,810 |
|
|
5,981 |
|
|
(5)% |
|
(7)% |
|
|
|
Commercial leases |
3,177 |
|
|
3,120 |
|
|
2,685 |
|
|
2% |
|
18% |
|
|
|
Total commercial loans and leases |
$74,915 |
|
|
$75,415 |
|
|
$71,769 |
|
|
(1)% |
|
4% |
|
|
|
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans |
$17,656 |
|
|
$17,615 |
|
|
$17,031 |
|
|
— |
|
4% |
|
|
|
Home equity |
4,579 |
|
|
4,383 |
|
|
4,018 |
|
|
4% |
|
14% |
|
|
|
Indirect secured consumer loans |
17,729 |
|
|
17,248 |
|
|
15,680 |
|
|
3% |
|
13% |
|
|
|
Credit card |
1,678 |
|
|
1,659 |
|
|
1,708 |
|
|
1% |
|
(2)% |
|
|
|
Solar energy installation loans |
4,355 |
|
|
4,268 |
|
|
3,990 |
|
|
2% |
|
9% |
|
|
|
Other consumer loans |
2,414 |
|
|
2,483 |
|
|
2,630 |
|
|
(3)% |
|
(8)% |
|
|
|
Total consumer loans |
$48,411 |
|
|
$47,656 |
|
|
$45,057 |
|
|
2% |
|
7% |
|
|
|
Total average portfolio loans and leases |
$123,326 |
|
|
$123,071 |
|
|
$116,826 |
|
|
— |
|
6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Loans and Leases Held for Sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans and leases held for sale |
$44 |
|
|
$45 |
|
|
$16 |
|
|
(2)% |
|
175% |
|
|
|
Consumer loans held for sale |
623 |
|
|
541 |
|
|
573 |
|
|
15% |
|
9% |
|
|
|
Total average loans and leases held for sale |
$667 |
|
|
$586 |
|
|
$589 |
|
|
14% |
|
13% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average loans and leases |
$123,993 |
|
|
$123,657 |
|
|
$117,415 |
|
|
— |
|
6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities (taxable and tax-exempt) |
$54,592 |
|
|
$56,243 |
|
|
$56,707 |
|
|
(3)% |
|
(4)% |
|
|
|
Other short-term investments |
14,915 |
|
|
12,782 |
|
|
21,714 |
|
|
17% |
|
(31)% |
|
|
|
Total average interest-earning assets |
$193,500 |
|
|
$192,682 |
|
|
$195,836 |
|
|
— |
|
(1)% |
|
Total average portfolio loans and leases of $123 billion remained stable compared to the prior quarter. Average commercial portfolio loans and leases of $75 billion decreased 1%, due to declines in commercial mortgage and commercial construction loans, partially offset by increases in C&I middle market loans. Average consumer portfolio loans of $48 billion increased 2%, driven by continued strong growth in indirect secured consumer and home equity loans.
Compared to the year-ago quarter, total average portfolio loans and leases increased 6%. Average commercial portfolio loans and leases increased 4%, reflecting increases in C&I middle market, commercial mortgage loans, and commercial leases. Average consumer portfolio loans increased 7%, primarily due to increases in indirect secured consumer, residential mortgage, and home equity loans.
Average securities (taxable and tax-exempt; amortized cost) of $55 billion in the current quarter decreased 3% compared to the prior quarter and 4% compared to the year-ago quarter. Average other short-term investments (including interest-bearing cash) of $15 billion in the current quarter increased 17% compared to the prior quarter and decreased 31% compared to the year-ago quarter.
|
|
End of Period Interest-Earning Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
As of |
|
|
% Change |
|
||||||||
|
|
|
September |
|
June |
|
September |
|
|
|
|
|
|||
|
|
|
2025 |
|
2025 |
|
2024 |
|
Seq |
|
Yr/Yr |
|
|||
|
|
End of Period Portfolio Loans and Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commercial loans and leases |
$74,423 |
|
|
$74,152 |
|
|
$71,130 |
|
|
— |
|
5% |
|
|
|
Total consumer loans |
48,707 |
|
|
48,244 |
|
|
45,538 |
|
|
1% |
|
7% |
|
|
|
Total portfolio loans and leases |
$123,130 |
|
|
$122,396 |
|
|
$116,668 |
|
|
1% |
|
6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of Period Loans and Leases Held for Sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases held for sale |
$576 |
|
|
$646 |
|
|
$612 |
|
|
(11)% |
|
(6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans and leases |
$123,706 |
|
|
$123,042 |
|
|
$117,280 |
|
|
1% |
|
5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities (taxable and tax-exempt) |
$52,680 |
|
|
$55,109 |
|
|
$56,738 |
|
|
(4)% |
|
(7)% |
|
|
|
Other short-term investments |
17,215 |
|
|
13,043 |
|
|
21,729 |
|
|
32% |
|
(21)% |
|
|
|
Total interest-earning assets |
$193,601 |
|
|
$191,194 |
|
|
$195,747 |
|
|
1% |
|
(1)% |
|
Period-end commercial portfolio loans and leases of $74 billion remained stable compared to the prior quarter. Compared to the year-ago quarter, period-end commercial portfolio loans and leases increased 5%, primarily due to growth in C&I loans.
Period-end consumer portfolio loans of $49 billion increased 1% compared to the prior quarter, primarily reflecting increases in indirect secured consumer and home equity loans. Compared to the year-ago quarter, period-end consumer portfolio loans increased 7%, driven by increases in indirect secured consumer, home equity, and residential mortgage loans.
Total period-end securities (taxable and tax-exempt; amortized cost) of $53 billion in the current quarter decreased 4% compared to the prior quarter and decreased 7% compared to the year-ago quarter. Period-end other short-term investments of approximately $17 billion increased 32% compared to the prior quarter and decreased 21% compared to the year-ago quarter.
|
Average Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||
|
|
|
September |
|
June |
|
September |
|
|
|
|
|
|||
|
|
|
2025 |
|
2025 |
|
2024 |
|
Seq |
|
Yr/Yr |
|
|||
|
|
Average Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
$41,235 |
|
|
$40,885 |
|
|
$40,020 |
|
|
1% |
|
3% |
|
|
|
Interest checking |
56,624 |
|
|
56,738 |
|
|
58,605 |
|
|
— |
|
(3)% |
|
|
|
Savings |
16,376 |
|
|
16,962 |
|
|
17,272 |
|
|
(3)% |
|
(5)% |
|
|
|
Money market |
37,434 |
|
|
36,296 |
|
|
37,257 |
|
|
3% |
|
— |
|
|
|
Total transaction deposits |
$151,669 |
|
|
$150,881 |
|
|
$153,154 |
|
|
1% |
|
(1)% |
|
|
|
CDs $250,000 or less |
10,841 |
|
|
10,494 |
|
|
10,543 |
|
|
3% |
|
3% |
|
|
|
Total core deposits |
$162,510 |
|
|
$161,375 |
|
|
$163,697 |
|
|
1% |
|
(1)% |
|
|
|
CDs over $250,0001 |
2,244 |
|
|
2,200 |
|
|
3,499 |
|
|
2% |
|
(36)% |
|
|
|
Total average deposits |
$164,754 |
|
|
$163,575 |
|
|
$167,196 |
|
|
1% |
|
(1)% |
|
|
|
1CDs over $250,000 includes $1.0BN, $1.1BN, and $2.6BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 9/30/25, 6/30/25, and 9/30/24, respectively. |
|
||||||||||||
Total average deposits of $165 billion increased 1% compared to the prior quarter, primarily driven by growth in money market and demand deposits, partially offset by declines in savings and interest checking balances. The growth in demand deposits reflects our strategic focus on enhancing the deposit mix, and represents the second consecutive quarter of demand deposit growth. Period-end total deposits of $167 billion increased 1%.
Compared to the year-ago quarter, total average deposits decreased 1%, mainly due to lower interest checking balances and a reduction in CDs over $250,000, which includes brokered deposits, partially offset by an increase in demand deposits and CDs $250,000 or less. Period-end total deposits decreased 1%.
The period-end portfolio loan-to-core deposit ratio was 75% in the current quarter, compared to 76% in the prior quarter and 71% in the year-ago quarter.
|
Average Wholesale Funding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
For the Three Months Ended |
|
|
% Change |
|
||||||||
|
|
|
September |
|
June |
|
September |
|
|
|
|
|
|||
|
|
|
2025 |
|
2025 |
|
2024 |
|
Seq |
|
Yr/Yr |
|
|||
|
|
Average Wholesale Funding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CDs over $250,0001 |
$2,244 |
|
|
$2,200 |
|
|
$3,499 |
|
|
2% |
|
(36)% |
|
|
|
Federal funds purchased |
198 |
|
|
206 |
|
|
176 |
|
|
(4)% |
|
13% |
|
|
|
Securities sold under repurchase agreements |
376 |
|
|
353 |
|
|
396 |
|
|
7% |
|
(5)% |
|
|
|
FHLB advances |
4,920 |
|
|
4,976 |
|
|
2,576 |
|
|
(1)% |
|
91% |
|
|
|
Derivative collateral and other secured borrowings |
82 |
|
|
89 |
|
|
52 |
|
|
(8)% |
|
58% |
|
|
|
Long-term debt |
14,001 |
|
|
14,599 |
|
|
16,716 |
|
|
(4)% |
|
(16)% |
|
|
|
Total average wholesale funding |
$21,821 |
|
|
$22,423 |
|
|
$23,415 |
|
|
(3)% |
|
(7)% |
|
|
|
1CDs over $250,000 includes $1.0BN, $1.1BN, and $2.6BN of retail brokered certificates of deposit which are fully covered by FDIC insurance for the three months ended 9/30/25, 6/30/25, and 9/30/24, respectively. |
|
||||||||||||
Average wholesale funding of $22 billion decreased 3% compared to the prior quarter, driven by a reduction in long-term debt and FHLB advances. The 7% decrease in average wholesale funding compared to the year-ago quarter was primarily attributable to a decrease in long-term debt and CDs over $250,000, inclusive of brokered deposits.
|
Credit Quality Summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
As of and For the Three Months Ended |
|||||||||||||
|
|
September |
|
June |
|
March |
|
December |
|
September |
|||||
|
|
2025 |
|
2025 |
|
2025 |
|
2024 |
|
2024 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual portfolio loans and leases (NPLs) |
$768 |
|
|
$853 |
|
|
$966 |
|
|
$823 |
|
|
$686 |
|
|
Repossessed property |
12 |
|
|
8 |
|
|
9 |
|
|
9 |
|
|
11 |
|
|
OREO |
21 |
|
|
25 |
|
|
21 |
|
|
21 |
|
|
28 |
|
|
Total nonperforming portfolio loans and leases and OREO (NPAs) |
$801 |
|
|
$886 |
|
|
$996 |
|
|
$853 |
|
|
$725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NPL ratio(g) |
0.62% |
|
|
0.70% |
|
|
0.79% |
|
|
0.69% |
|
|
0.59% |
|
|
NPA ratio(c) |
0.65% |
|
|
0.72% |
|
|
0.81% |
|
|
0.71% |
|
|
0.62% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio loans and leases 30-89 days past due (accrual) |
$348 |
|
|
$277 |
|
|
$385 |
|
|
$303 |
|
|
$283 |
|
|
Portfolio loans and leases 90 days past due (accrual) |
29 |
|
|
34 |
|
|
33 |
|
|
32 |
|
|
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-89 days past due as a % of portfolio loans and leases |
0.28% |
|
|
0.23% |
|
|
0.31% |
|
|
0.25% |
|
|
0.24% |
|
|
90 days past due as a % of portfolio loans and leases |
0.02% |
|
|
0.03% |
|
|
0.03% |
|
|
0.03% |
|
|
0.03% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses (ALLL), beginning |
$2,412 |
|
|
$2,384 |
|
|
$2,352 |
|
|
$2,305 |
|
|
$2,288 |
|
|
Total net losses charged-off |
(339) |
|
|
(139) |
|
|
(136) |
|
|
(136) |
|
|
(142) |
|
|
Provision for loan and lease losses |
192 |
|
|
167 |
|
|
168 |
|
|
183 |
|
|
159 |
|
|
ALLL, ending |
$2,265 |
|
|
$2,412 |
|
|
$2,384 |
|
|
$2,352 |
|
|
$2,305 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve for unfunded commitments, beginning |
$146 |
|
|
$140 |
|
|
$134 |
|
|
$138 |
|
|
$137 |
|
|
Provision for (benefit from) the reserve for unfunded commitments |
5 |
|
|
6 |
|
|
6 |
|
|
(4) |
|
|
1 |
|
|
Reserve for unfunded commitments, ending |
$151 |
|
|
$146 |
|
|
$140 |
|
|
$134 |
|
|
$138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for credit losses (ACL) |
$2,416 |
|
|
$2,558 |
|
|
$2,524 |
|
|
$2,486 |
|
|
$2,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACL ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As a % of portfolio loans and leases |
1.96% |
|
|
2.09% |
|
|
2.07% |
|
|
2.08% |
|
|
2.09% |
|
|
As a % of nonperforming portfolio loans and leases |
314% |
|
|
300% |
|
|
261% |
|
|
302% |
|
|
356% |
|
|
As a % of nonperforming portfolio assets |
302% |
|
|
289% |
|
|
253% |
|
|
291% |
|
|
337% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLL as a % of portfolio loans and leases |
1.84% |
|
|
1.97% |
|
|
1.95% |
|
|
1.96% |
|
|
1.98% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total losses charged-off |
$(382) |
|
|
$(194) |
|
|
$(173) |
|
|
$(175) |
|
|
$(183) |
|
|
Total recoveries of losses previously charged-off |
43 |
|
|
55 |
|
|
37 |
|
|
39 |
|
|
41 |
|
|
Total net losses charged-off |
$(339) |
|
|
$(139) |
|
|
$(136) |
|
|
$(136) |
|
|
$(142) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-off ratio (NCO ratio)(b) |
1.09% |
|
|
0.45% |
|
|
0.46% |
|
|
0.46% |
|
|
0.48% |
|
|
Commercial NCO ratio |
1.46% |
|
|
0.38% |
|
|
0.35% |
|
|
0.32% |
|
|
0.40% |
|
|
Consumer NCO ratio |
0.52% |
|
|
0.56% |
|
|
0.63% |
|
|
0.68% |
|
|
0.62% |
|
The provision for credit losses totaled $197 million in the current quarter and the ACL ratio represented 1.96% of total portfolio loans and leases at quarter end, down 13 bps from 2.09% in the prior and year-ago periods. The ACL coverage ratio increased to 314% of nonperforming portfolio loans and leases and 302% of nonperforming portfolio assets.
Net charge-offs totaled $339 million in the current quarter, up $200 million from the prior quarter and the NCO ratio increased 64 bps to 1.
Contacts
Investor contact: Matt Curoe (513) 534-2345 | Media contact: Jennifer Hendricks Sullivan (614) 744-7693
