Citizens Financial Group, Inc.
CFG Financial Services Q4 2024
Document 1
Citizens Financial Group, Inc. Reports Fourth Quarter 2024 Net Income of
$401 millionand EPS of $0.83
Underlying Net Income of $412 million and EPS of $0.85*
CET1 ratio of 10.8%; LDR 79.6%
2024 Net Income of $1.5 billion and EPS of $3.03; Underlying EPS of $3.24
| Key Financial Data | 4Q24 | 3Q24 | 4Q23 | Fourth Quarter 2024 Highlights | ||||||||||||||||||||||
| Income Statement | ($s in millions) | ■Underlying EPS of $0.85 and ROTCE of 10.7% ■Underlying PPNR of $684 million, up 4% QoQ –NII up 3%, driven by a 10 bp improvement in NIM to 2.87% –Fees up 6%, primarily reflecting higher Capital Markets fees –Expenses up 3.5% driven by investments, including Private Bank and Commercial middle market –Positive operating leverage of ~50 bps QoQ ■Strong ACL coverage of 1.62%, up 1 bp QoQ ■Period-end loans down 1.7% QoQ driven by continued Non-Core run off and lower C&I and CRE, partially offset by growth in Private Bank lending, which increased by $1.1 billion to $3.1 billion ■Average deposits broadly stable QoQ; Private Bank spot deposits up $1.4 billion to $7.0 billion ■Strong liquidity profile; spot LDR of 79.6%; spot FHLB reduced to $53 million, down $3.7 billion YoY –Pro forma LCR of 119% exceeds Category 1 Bank requirement of 100% ■Net charge-offs of 53 bps, stable QoQ ■Strong CET1 ratio of 10.8%; TCE ratio of 6.8% ■TBV/share of $32.34, down 3.6% QoQ reflects the AOCI impact of higher long-term rates | ||||||||||||||||||||||||
| Total revenue | $ | 1,986 | $ | 1,901 | $ | 1,988 | ||||||||||||||||||||
| Pre-provision profit | 670 | 642 | 376 | |||||||||||||||||||||||
| Underlying pre-provision profit | 684 | 655 | 721 | |||||||||||||||||||||||
| Provision for credit losses | 162 | 172 | 171 | |||||||||||||||||||||||
| Net income | 401 | 382 | 189 | |||||||||||||||||||||||
| Underlying net income | 412 | 392 | 426 | |||||||||||||||||||||||
| Balance Sheet & Credit Quality | ($s in billions) | |||||||||||||||||||||||||
| Period-end loans and leases | $ | 139.2 | $ | 141.6 | $ | 146.0 | ||||||||||||||||||||
| Average loans and leases | 140.9 | 142.0 | 148.0 | |||||||||||||||||||||||
| Period-end deposits | 174.8 | 175.2 | 177.3 | |||||||||||||||||||||||
| Average deposits | 174.3 | 174.1 | 177.1 | |||||||||||||||||||||||
| Period-end loan-to-deposit ratio | 79.6 | % | 80.8 | % | 82.3 | % | ||||||||||||||||||||
| NCO ratio | 0.53 | % | 0.54 | % | 0.46 | % | ||||||||||||||||||||
| Financial Metrics | Diluted EPS | $ | 0.83 | $ | 0.77 | $ | 0.34 | |||||||||||||||||||
| Underlying Diluted EPS | 0.85 | 0.79 | 0.85 | |||||||||||||||||||||||
| ROTCE | 10.4 | % | 9.5 | % | 4.7 | % | ||||||||||||||||||||
| Underlying ROTCE | 10.7 | 9.7 | 11.8 | |||||||||||||||||||||||
| Net interest margin, FTE | 2.87 | 2.77 | 2.91 | |||||||||||||||||||||||
| Efficiency ratio | 66.3 | 66.2 | 81.1 | |||||||||||||||||||||||
| Underlying efficiency ratio | 65.4 | 65.6 | 63.8 | |||||||||||||||||||||||
| CET1 | 10.8 | % | 10.6 | % | 10.6 | % | ||||||||||||||||||||
| TBV/Share | $ | 32.34 | $ | 33.54 | $ | 30.91 | ||||||||||||||||||||
| Notable Items | 4Q24 | ||||||||||||||||
| ($s in millions except per share data) | Pre-tax $ | EPS | |||||||||||||||
Integration-related | $ | (2) | $ | — | |||||||||||||
| TOP and Other items | (12) | (0.02) | |||||||||||||||
Total | $ | (14) | $ | (0.02) | |||||||||||||
| Comments from Chairman and CEO Bruce Van Saun | ||||||||
“We were pleased to post solid performance in Q4 given strong execution of our key initiatives and nice improvement in our net interest margin,” said Chairman and CEO Bruce Van Saun. “Good sequential growth in revenues delivered a return to
*Results presented on an Underlying basis are non-GAAP Financial Measures. See page 15 for additional information on our use of Non-GAAP Financial Measures.
Citizens Financial Group, Inc.
positive operating leverage, and our balance sheet remains strong with CET1 at 10.8%, LDR below 80% and credit metrics all trending favorably. Our Private Bank hit year end balances of $7 billion in deposits, $3.1 billion in loans, and $4.7 billion AUM, tracking very well to targets. I would like to thank our colleague base for their fine effort and dedication in continuing to serve our customers well and in positioning us for a strong 2025 and bright future.”
Citizens also announced today that its board of directors declared a quarterly common stock dividend of $0.42 per share. The dividend is payable on February 14, 2025 to shareholders of record at the close of business on January 31, 2025.
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Citizens Financial Group, Inc.
Earnings highlights(1):
| Quarterly Trends | Full Year | |||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 change from | 2024 change from 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
| ($s in millions, except per share data) | 4Q24 | 3Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||
| Earnings | $/bps | % | $/bps | % | $ | $ | $/bps | |||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 1,412 | $ | 1,369 | $ | 1,488 | $ | 43 | 3 | % | $ | (76) | (5) | % | $ | 5,633 | $ | 6,241 | $ | (608) | ||||||||||||||||||||||||||||||
| Noninterest income | 574 | 532 | 500 | 42 | 8 | 74 | 15 | 2,176 | 1,983 | 193 | ||||||||||||||||||||||||||||||||||||||||
| Total revenue | 1,986 | 1,901 | 1,988 | 85 | 4 | (2) | — | 7,809 | 8,224 | (415) | ||||||||||||||||||||||||||||||||||||||||
| Noninterest expense | 1,316 | 1,259 | 1,612 | 57 | 5 | (296) | (18) | 5,234 | 5,507 | (273) | ||||||||||||||||||||||||||||||||||||||||
| Pre-provision profit | 670 | 642 | 376 | 28 | 4 | 294 | 78 | 2,575 | 2,717 | (142) | ||||||||||||||||||||||||||||||||||||||||
| Provision for credit losses | 162 | 172 | 171 | (10) | (6) | (9) | (5) | 687 | 687 | — | ||||||||||||||||||||||||||||||||||||||||
| Net income | 401 | 382 | 189 | 19 | 5 | 212 | 112 | 1,509 | 1,608 | (99) | ||||||||||||||||||||||||||||||||||||||||
| Preferred dividends | 34 | 38 | 30 | (4) | (11) | 4 | 13 | 137 | 117 | 20 | ||||||||||||||||||||||||||||||||||||||||
| Net income available to common stockholders | $ | 367 | $ | 344 | $ | 159 | $ | 23 | 7 | % | $ | 208 | 131 | % | $ | 1,372 | $ | 1,491 | $ | (119) | ||||||||||||||||||||||||||||||
| After-tax notable Items | 11 | 10 | 237 | 1 | 10 | (226) | (95) | 98 | 357 | (259) | ||||||||||||||||||||||||||||||||||||||||
| Underlying net income | $ | 412 | $ | 392 | $ | 426 | $ | 20 | 5 | % | $ | (14) | (3) | % | $ | 1,607 | $ | 1,965 | $ | (358) | ||||||||||||||||||||||||||||||
| Underlying net income available to common stockholders | 378 | 354 | 396 | 24 | 7 | (18) | (5) | $ | 1,470 | $ | 1,848 | $ | (378) | |||||||||||||||||||||||||||||||||||||
| Average common shares outstanding | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic (in millions) | 440.8 | 446.6 | 466.2 | (5.8) | (1) | (25.4) | (5) | 450.7 | 475.1 | (24.4) | ||||||||||||||||||||||||||||||||||||||||
| Diluted (in millions) | 444.8 | 449.9 | 468.2 | (5.1) | (1) | (23.3) | (5) | 453.5 | 476.7 | (23.2) | ||||||||||||||||||||||||||||||||||||||||
| Diluted earnings per share | $ | 0.83 | $ | 0.77 | $ | 0.34 | $ | 0.06 | 8 | % | $ | 0.49 | 144 | % | $ | 3.03 | $ | 3.13 | $ | (0.10) | ||||||||||||||||||||||||||||||
| Underlying diluted earnings per share | 0.85 | 0.79 | 0.85 | 0.06 | 8 | — | — | $ | 3.24 | $ | 3.88 | $ | (0.64) | |||||||||||||||||||||||||||||||||||||
| Performance metrics | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest margin | 2.86 | % | 2.76 | % | 2.90 | % | 10 | bps | (4) | bps | 2.84 | % | 3.09 | % | (25) | bps | ||||||||||||||||||||||||||||||||||
| Net interest margin, FTE | 2.87 | 2.77 | 2.91 | 10 | (4) | 2.85 | 3.10 | (25) | ||||||||||||||||||||||||||||||||||||||||||
| Effective income tax rate | 21.0 | 18.6 | 7.6 | 248 | 1,345 | 20.1 | 20.8 | (70) | ||||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio | 66.3 | 66.2 | 81.1 | 4 | (1,486) | 67.0 | 67.0 | 6 | ||||||||||||||||||||||||||||||||||||||||||
| Underlying efficiency ratio | 65.4 | 65.6 | 63.8 | (25) | 159 | 65.2 | 60.8 | 434 | ||||||||||||||||||||||||||||||||||||||||||
| Return on average tangible common equity | 10.4 | 9.5 | 4.7 | 91 | 564 | 9.8 | 10.9 | (111) | ||||||||||||||||||||||||||||||||||||||||||
| Underlying return on average tangible common equity | 10.7 | 9.7 | 11.8 | 95 | (118) | 10.5 | 13.5 | (302) | ||||||||||||||||||||||||||||||||||||||||||
| Return on average total tangible assets | 0.76 | 0.72 | 0.35 | 4 | 41 | 0.71 | 0.75 | (4) | ||||||||||||||||||||||||||||||||||||||||||
| Underlying return on average total tangible assets | 0.78 | % | 0.74 | % | 0.78 | % | 4 | bps | — | bps | 0.76 | % | 0.92 | % | (16) | bps | ||||||||||||||||||||||||||||||||||
Capital adequacy(2,3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Common equity tier 1 capital ratio | 10.8 | % | 10.6 | % | 10.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total capital ratio | 14.0 | 13.9 | 13.7 | |||||||||||||||||||||||||||||||||||||||||||||||
| Tier 1 leverage ratio | 9.4 | 9.4 | 9.3 | |||||||||||||||||||||||||||||||||||||||||||||||
| Tangible common equity ratio | 6.8 | 7.0 | 6.7 | |||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses to loans and leases | 1.62 | % | 1.61 | % | 1.59 | % | 1 | bps | 3 | bps | ||||||||||||||||||||||||||||||||||||||||
Asset quality(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Nonaccrual loans and leases to loans and leases | 1.20 | % | 1.19 | % | 0.93 | % | 1 | bps | 27 | bps | ||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses to nonaccrual loans and leases | 136 | 136 | 170 | — | (34) | |||||||||||||||||||||||||||||||||||||||||||||
| Net charge-offs as a % of average loans and leases | 0.53 | % | 0.54 | % | 0.46 | % | (1) | bps | 7 | bps | 0.52 | % | 0.40 | % | 12 | bps | ||||||||||||||||||||||||||||||||||
(1) Unless otherwise noted, references to balance sheet items are on an average basis, loans exclude loans held for sale, earnings per share
represent fully diluted per common share and references to NIM are on a FTE basis.
(2) Current reporting-period regulatory capital ratios are preliminary.
(3)Capital adequacy and asset-quality ratios calculated on a period-end basis, except net charge-offs.
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Citizens Financial Group, Inc.
The following table provides information on Underlying results which exclude the impact of notable items.
Underlying results:
| Quarterly Trends | Full Year | ||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 change from | 2024 Change | ||||||||||||||||||||||||||||||||||||||||||||||
| ($s in millions, except per share data) | 4Q24 | 3Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | from 2023 | |||||||||||||||||||||||||||||||||||||||
| $/bps | % | $/bps | % | % | |||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 1,412 | $ | 1,369 | $ | 1,488 | $ | 43 | 3 | % | $ | (76) | (5) | % | $ | 5,633 | $ | 6,241 | (10) | % | |||||||||||||||||||||||||||
| Noninterest income | 564 | 534 | 500 | 30 | 6 | 64 | 13 | 2,161 | 1,983 | 9 | |||||||||||||||||||||||||||||||||||||
| Total revenue | $ | 1,976 | $ | 1,903 | $ | 1,988 | $ | 73 | 4 | % | $ | (12) | (1) | % | $ | 7,794 | $ | 8,224 | (5) | % | |||||||||||||||||||||||||||
| Noninterest expense | 1,292 | 1,248 | 1,267 | 44 | 4 | 25 | 2 | 5,078 | 5,001 | 2 | |||||||||||||||||||||||||||||||||||||
| Provision for credit losses | 162 | 172 | 171 | (10) | (6) | (9) | (5) | 687 | 687 | — | |||||||||||||||||||||||||||||||||||||
| Net income available to common stockholders | $ | 378 | $ | 354 | $ | 396 | $ | 24 | 7 | % | $ | (18) | (5) | % | $ | 1,470 | $ | 1,848 | (20) | % | |||||||||||||||||||||||||||
| Performance metrics | |||||||||||||||||||||||||||||||||||||||||||||||
| EPS | $ | 0.85 | $ | 0.79 | $ | 0.85 | $ | 0.06 | 8 | % | $ | — | — | % | $ | 3.24 | $ | 3.88 | (16) | % | |||||||||||||||||||||||||||
| Efficiency ratio | 65.4 | % | 65.6 | % | 63.8 | % | (25) | bps | 159 | bps | 65.2 | % | 60.8 | % | 434 | ||||||||||||||||||||||||||||||||
| Return on average tangible common equity | 10.7 | % | 9.7 | % | 11.8 | % | 95 | bps | (118) | bps | 10.5 | % | 13.5 | % | (302) | bps | |||||||||||||||||||||||||||||||
Consolidated balance sheet summary(1):
| 4Q24 change from | ||||||||||||||||||||||||||||||||||||||
| ($s in millions) | 4Q24 | 3Q24 | 4Q23 | 3Q24 | 4Q23 | |||||||||||||||||||||||||||||||||
| $/bps | % | $/bps | % | |||||||||||||||||||||||||||||||||||
| Total assets | $ | 217,521 | $ | 219,706 | $ | 221,964 | $ | (2,185) | (1) | % | $ | (4,443) | (2) | % | ||||||||||||||||||||||||
| Total loans and leases | 139,203 | 141,632 | 145,959 | (2,429) | (2) | (6,756) | (5) | |||||||||||||||||||||||||||||||
| Total loans held for sale | 858 | 663 | 779 | 195 | 29 | 79 | 10 | |||||||||||||||||||||||||||||||
| Deposits | 174,776 | 175,188 | 177,342 | (412) | — | (2,566) | (1) | |||||||||||||||||||||||||||||||
| Stockholders' equity | 24,254 | 24,932 | 24,342 | (678) | (3) | (88) | — | |||||||||||||||||||||||||||||||
| Stockholders' common equity | 22,141 | 22,820 | 22,329 | (679) | (3) | (188) | (1) | |||||||||||||||||||||||||||||||
| Tangible common equity | $ | 14,246 | $ | 14,931 | $ | 14,417 | $ | (685) | (5) | % | $ | (171) | (1) | % | ||||||||||||||||||||||||
Loan-to-deposit ratio (period-end)(2) | 79.6 | % | 80.8 | % | 82.3 | % | (120) | bps | (265) | bps | ||||||||||||||||||||||||||||
Loan-to-deposit ratio (average)(2) | 80.9 | % | 81.6 | % | 83.5 | % | (71) | bps | (266) | bps | ||||||||||||||||||||||||||||
| (1) Represents period-end unless otherwise noted. | ||||||||||||||||||||||||||||||||||||||
| (2) Excludes loans held for sale. | ||||||||||||||||||||||||||||||||||||||
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Citizens Financial Group, Inc.
Notable items:
Quarterly results reflect notable items primarily related to integration costs associated with recent acquisitions, as well as TOP revenue and efficiency initiatives and other items. In addition, fourth quarter 2024 and fourth quarter 2023 include a notable item for an industry-wide FDIC special assessment. These notable items have been excluded from reported results to better reflect Underlying operating results.
| Notable items - Integration-related | 4Q24 | 3Q24 | 4Q23 | FY 2024 | FY 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($s in millions, except per share data) | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries & benefits | $ | (2) | $ | (1) | $ | (2) | $ | (2) | $ | (2) | $ | (1) | $ | (9) | $ | (6) | $ | (15) | $ | (11) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Equipment and software | — | — | — | — | — | — | — | — | (4) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outside services | — | — | — | — | (3) | (2) | (1) | (1) | (43) | (31) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Occupancy | — | — | — | — | — | — | — | — | (41) | (30) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other expense | — | — | — | — | — | — | — | — | (1) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expense | $ | (2) | $ | (1) | $ | (2) | $ | (2) | $ | (5) | $ | (3) | $ | (10) | $ | (7) | $ | (104) | $ | (76) | ||||||||||||||||||||||||||||||||||||||||||||||||
| EPS Impact - Noninterest expense | $ | — | $ | — | $ | (0.01) | $ | (0.02) | $ | (0.16) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Integration-related | $ | (2) | $ | (1) | $ | (2) | $ | (2) | $ | (5) | $ | (3) | $ | (10) | $ | (7) | $ | (104) | $ | (76) | ||||||||||||||||||||||||||||||||||||||||||||||||
| EPS Impact - Total Integration-related | $ | — | $ | — | $ | (0.01) | $ | (0.02) | $ | (0.16) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other notable items - TOP & Other | 4Q24 | 3Q24 | 4Q23 | FY 2024 | FY 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ($s in millions, except per share data) | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax notable items | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 17 | $ | — | $ | 7 | $ | — | $ | 17 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income | 10 | 8 | (2) | (1) | — | — | 15 | 11 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries & benefits | (15) | (12) | (2) | (2) | (30) | (22) | (37) | (27) | (52) | (38) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equipment and software | (3) | (2) | (2) | (2) | (37) | (27) | (17) | (13) | (47) | (35) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outside services | (4) | (3) | (2) | (2) | (10) | (7) | (27) | (21) | (25) | (19) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Occupancy | (5) | (4) | (1) | — | (20) | (15) | (19) | (14) | (29) | (22) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FDIC special assessment(1) | 9 | 6 | — | — | (225) | (167) | (31) | (24) | (225) | (167) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other expense | (4) | (3) | (2) | (1) | (18) | (13) | (15) | (10) | (24) | (17) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expense | $ | (22) | $ | (18) | $ | (9) | $ | (7) | $ | (340) | $ | (251) | $ | (146) | $ | (109) | $ | (402) | $ | (298) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total Other Notable Items | $ | (12) | $ | (10) | $ | (11) | $ | (8) | $ | (340) | $ | (234) | $ | (131) | $ | (91) | $ | (402) | $ | (281) | ||||||||||||||||||||||||||||||||||||||||||||||||
| EPS Impact - Other Notable Items | $ | (0.02) | $ | (0.02) | $ | (0.50) | $ | (0.19) | $ | (0.59) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Notable Items | $ | (14) | $ | (11) | $ | (13) | $ | (10) | $ | (345) | $ | (237) | $ | (141) | $ | (98) | $ | (506) | $ | (357) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Total EPS Impact | $ | (0.02) | $ | (0.02) | $ | (0.51) | $ | (0.21) | $ | (0.75) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) The FDIC special assessment earnings per share impact is $0.01, $(0.35), $(0.05), and $(0.35) for fourth quarter 2024, fourth quarter 2023, full year 2024, and full year 2023 respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5
Citizens Financial Group, Inc.
Discussion of results:
| Net interest income | 4Q24 change from | |||||||||||||||||||||||||||||||||||||||||||
| ($s in millions) | 4Q24 | 3Q24 | 4Q23 | 3Q24 | 4Q23 | |||||||||||||||||||||||||||||||||||||||
| $/bps | % | $/bps | % | |||||||||||||||||||||||||||||||||||||||||
| Interest income: | ||||||||||||||||||||||||||||||||||||||||||||
| Interest and fees on loans and leases and loans held for sale | $ | 1,931 | $ | 1,995 | $ | 2,166 | $ | (64) | (3) | % | $ | (235) | (11) | % | ||||||||||||||||||||||||||||||
| Investment securities | 419 | 423 | 339 | (4) | (1) | 80 | 24 | |||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits in banks | 112 | 121 | 171 | (9) | (7) | (59) | (35) | |||||||||||||||||||||||||||||||||||||
| Total interest income | $ | 2,462 | $ | 2,539 | $ | 2,676 | $ | (77) | (3) | % | $ | (214) | (8) | % | ||||||||||||||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||||||||||||||||||||||
| Deposits | $ | 883 | $ | 990 | $ | 974 | $ | (107) | (11) | % | $ | (91) | (9) | % | ||||||||||||||||||||||||||||||
| Short-term borrowed funds | 1 | 3 | 7 | (2) | (67) | (6) | (86) | |||||||||||||||||||||||||||||||||||||
| Long-term borrowed funds | 166 | 177 | 207 | (11) | (6) | (41) | (20) | |||||||||||||||||||||||||||||||||||||
| Total interest expense | $ | 1,050 | $ | 1,170 | $ | 1,188 | $ | (120) | (10) | % | $ | (138) | (12) | % | ||||||||||||||||||||||||||||||
| Net interest income | $ | 1,412 | $ | 1,369 | $ | 1,488 | $ | 43 | 3 | % | $ | (76) | (5) | % | ||||||||||||||||||||||||||||||
| Net interest margin, FTE | 2.87 | % | 2.77 | % | 2.91 | % | 10 | bps | (4) | bps | ||||||||||||||||||||||||||||||||||
| Fourth quarter 2024 | vs. | third quarter 2024 | ||||||
Net interest income of $1.4 billion increased 3.1%, reflecting higher net interest margin and slightly lower interest-earning assets.
•Net interest margin of 2.87% increased 10 basis points, reflecting the benefit of lower deposit costs and improved mix, fixed-rate asset repricing and Non-Core run off, partially offset by the impact of variable-rate asset repricing, net of receive-fixed swaps.
•Interest-bearing deposit costs were down 31 basis points; total deposit costs were down 24 basis points, and total cost of funds were down 25 basis points to 2.23%.
| Fourth quarter 2024 | vs. | fourth quarter 2023 | ||||||
Net interest income of $1.4 billion decreased 5%, reflecting lower net interest margin and a 3% decline in average interest-earning assets.
•Net interest margin of 2.87% decreased 4 basis points, as an increase in swap costs and deposit migration were partially offset by the benefit of fixed-rate asset repricing and Non-Core run off.
6
Citizens Financial Group, Inc.
| Noninterest Income | 4Q24 change from | |||||||||||||||||||||||||||||||||||||||||||
| ($s in millions) | 4Q24 | 3Q24 | 4Q23 | 3Q24 | 4Q23 | |||||||||||||||||||||||||||||||||||||||
| $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||
| Service charges and fees | $ | 109 | $ | 109 | $ | 104 | $ | — | — | % | $ | 5 | 5 | % | ||||||||||||||||||||||||||||||
| Capital markets fees | 121 | 94 | 87 | 27 | 29 | 34 | 39 | |||||||||||||||||||||||||||||||||||||
| Card fees | 97 | 93 | 70 | 4 | 4 | 27 | 39 | |||||||||||||||||||||||||||||||||||||
Wealth fees(1) | 75 | 76 | 68 | (1) | (1) | 7 | 10 | |||||||||||||||||||||||||||||||||||||
| Mortgage banking fees | 60 | 46 | 57 | 14 | 30 | 3 | 5 | |||||||||||||||||||||||||||||||||||||
| Foreign exchange and derivative products | 35 | 36 | 43 | (1) | (3) | (8) | (19) | |||||||||||||||||||||||||||||||||||||
| Letter of credit and loan fees | 45 | 45 | 42 | — | — | 3 | 7 | |||||||||||||||||||||||||||||||||||||
| Securities gains, net | 4 | 9 | 9 | (5) | (56) | (5) | (56) | |||||||||||||||||||||||||||||||||||||
Other income(2) | 28 | 24 | 20 | 4 | 17 | 8 | 40 | |||||||||||||||||||||||||||||||||||||
| Noninterest income | $ | 574 | $ | 532 | $ | 500 | $ | 42 | 8 | % | $ | 74 | 15 | % | ||||||||||||||||||||||||||||||
| Underlying, as applicable | ||||||||||||||||||||||||||||||||||||||||||||
| Card fees | $ | 86 | $ | 87 | $ | 70 | $ | (1) | (1) | $ | 16 | 23 | ||||||||||||||||||||||||||||||||
Other income(2) | $ | 29 | $ | 32 | $ | 20 | $ | (3) | (9) | $ | 9 | 45 | ||||||||||||||||||||||||||||||||
| Underlying noninterest income | $ | 564 | $ | 534 | $ | 500 | $ | 30 | 6 | % | $ | 64 | 13 | % | ||||||||||||||||||||||||||||||
(1) Effective for 2Q24, Trust and Investment services fees was renamed to Wealth Fees to better reflect the broad range of wealth-related management fees and services provided to our customers. (2) Includes bank-owned life insurance income and other miscellaneous income for all periods presented. | ||||||||||||||||||||||||||||||||||||||||||||
| Fourth quarter 2024 | vs. | third quarter 2024 | ||||||
Underlying noninterest income of $564 million increased $30 million, or 5.6%.
•Capital markets fees increased $27 million, driven by higher loan syndication and M&A fees, partially offset by lower debt underwriting fees.
•Wealth fees decreased $1 million, reflecting lower transactional sales activity, largely offset by higher asset management fees.
•Mortgage banking fees increased $14 million, primarily driven by higher MSR valuation net of hedge impact.
•Foreign exchange and derivative products revenue decreased $1 million, given lower client hedging activity in commodities and interest rates, partially offset by higher foreign exchange revenue.
| Fourth quarter 2024 | vs. | fourth quarter 2023 | ||||||
Underlying noninterest income of $564 million increased $64 million, or 13%.
•Service charges and fees increased $5 million, primarily driven by higher overdraft and cash management fees.
•Capital markets fees increased $34 million, driven by higher loan syndication and M&A fees.
•Card fees increased $16 million, largely due to the impact of favorable vendor contract negotiations.
•Wealth fees increased $7 million, reflecting higher asset management fees, partially offset by lower transactional sales activity.
•Mortgage banking fees increased $3 million, given higher production fees and higher MSR valuation net of hedging, partially offset by lower servicing revenue.
•Foreign exchange and derivative products revenue decreased $8 million, given lower client activity in commodities and interest rate hedging.
7
Citizens Financial Group, Inc.
| Noninterest Expense | 4Q24 change from | |||||||||||||||||||||||||||||||||||||
| ($s in millions) | 4Q24 | 3Q24 | 4Q23 | 3Q24 | 4Q23 | |||||||||||||||||||||||||||||||||
| $ | % | $ | % | |||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 674 | $ | 647 | $ | 667 | $ | 27 | 4 | % | $ | 7 | 1 | % | ||||||||||||||||||||||||
| Equipment and software | 193 | 194 | 215 | (1) | (1) | (22) | (10) | |||||||||||||||||||||||||||||||
| Outside services | 170 | 146 | 174 | 24 | 16 | (4) | (2) | |||||||||||||||||||||||||||||||
| Occupancy | 112 | 108 | 125 | 4 | 4 | (13) | (10) | |||||||||||||||||||||||||||||||
| Other operating expense | 167 | 164 | 431 | 3 | 2 | (264) | (61) | |||||||||||||||||||||||||||||||
| Noninterest expense | $ | 1,316 | $ | 1,259 | $ | 1,612 | $ | 57 | 5 | % | $ | (296) | (18) | % | ||||||||||||||||||||||||
| Notable items | $ | 24 | $ | 11 | $ | 345 | $ | 13 | 118 | % | $ | (321) | (93)% | |||||||||||||||||||||||||
| Underlying, as applicable | ||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 657 | $ | 643 | $ | 635 | $ | 14 | 2 | % | $ | 22 | 3 | % | ||||||||||||||||||||||||
| Equipment and software | 190 | 192 | 178 | (2) | (1) | 12 | 7 | |||||||||||||||||||||||||||||||
| Outside services | 166 | 144 | 161 | 22 | 15 | 5 | 3 | |||||||||||||||||||||||||||||||
| Occupancy | 107 | 107 | 105 | — | — | 2 | 2 | |||||||||||||||||||||||||||||||
| Other operating expense | 172 | 162 | 188 | 10 | 6 | (16) | (9) | |||||||||||||||||||||||||||||||
| Underlying noninterest expense | $ | 1,292 | $ | 1,248 | $ | 1,267 | $ | 44 | 4 | % | $ | 25 | 2 | % | ||||||||||||||||||||||||
| Fourth quarter 2024 | vs. | third quarter 2024 | ||||||
Underlying noninterest expense of $1.3 billion increased 3.5%.
•Salaries and employee benefits increased $14 million, primarily reflecting hiring related to the Private Bank and Private Wealth build-out and Commercial middle market bankers in expansion markets.
•Equipment and software decreased $2 million.
•Outside services increased $22 million, largely reflecting elevated vendor-related costs and seasonality.
•Other operating expense increased $10 million, primarily reflecting higher marketing-related costs and travel.
The effective tax rate was 21.0% in fourth quarter 2024. On an underlying basis, the effective tax rate of 21.2% increased relative to 18.7% in third quarter 2024, primarily reflecting the reduced benefit of tax-advantaged investments, coupled with higher income.
| Fourth quarter 2024 | vs. | fourth quarter 2023 | ||||||
Underlying noninterest expense of $1.3 billion increased 2%.
•Salaries and employee benefits increased $22 million, reflecting hiring related to the Private Bank and Private Wealth build-out and Commercial middle market bankers in expansion markets, as well as a broader increase in salaries and benefits.
•Equipment and software increased $12 million given technology investments and maintenance.
•Other operating expense decreased $16 million, primarily reflecting lower fraud losses, deposit insurance and travel-related costs.
The effective tax rate was 21.0% in fourth quarter 2024. On an underlying basis, the effective tax rate of 21.2% compared with 22.3% in fourth quarter 2023.
8
Citizens Financial Group, Inc.
| Interest-earning assets | 4Q24 change from | ||||||||||||||||||||||||||||||||||
| ($s in millions) | 4Q24 | 3Q24 | 4Q23 | 3Q24 | 4Q23 | ||||||||||||||||||||||||||||||
| Period-end interest-earning assets | $ | % | $ | % | |||||||||||||||||||||||||||||||
| Investments | $ | 42,217 | $ | 42,428 | $ | 40,003 | $ | (211) | — | % | $ | 2,214 | 6 | % | |||||||||||||||||||||
| Interest-bearing deposits in banks | 9,827 | 10,584 | 10,239 | (757) | (7) | (412) | (4) | ||||||||||||||||||||||||||||
| Commercial loans and leases | 69,776 | 71,808 | 74,445 | (2,032) | (3) | (4,669) | (6) | ||||||||||||||||||||||||||||
| Retail loans | 69,427 | 69,824 | 71,514 | (397) | (1) | (2,087) | (3) | ||||||||||||||||||||||||||||
| Total loans and leases | 139,203 | 141,632 | 145,959 | (2,429) | (2) | (6,756) | (5) | ||||||||||||||||||||||||||||
| Loans held for sale, at fair value | 858 | 663 | 779 | 195 | 29 | 79 | 10 | ||||||||||||||||||||||||||||
| Total loans and leases and loans held for sale | 140,061 | 142,295 | 146,738 | (2,234) | (2) | (6,677) | (5) | ||||||||||||||||||||||||||||
| Total period-end interest-earning assets | $ | 192,105 | $ | 195,307 | $ | 196,980 | $ | (3,202) | (2) | % | $ | (4,875) | (2) | % | |||||||||||||||||||||
Average interest-earning assets | |||||||||||||||||||||||||||||||||||
Investments(1) | $ | 44,823 | $ | 45,084 | $ | 41,499 | $ | (261) | (1) | % | $ | 3,324 | 8 | % | |||||||||||||||||||||
| Interest-bearing deposits in banks | 9,459 | 8,896 | 12,387 | 563 | 6 | (2,928) | (24) | ||||||||||||||||||||||||||||
| Commercial loans and leases | 71,355 | 72,280 | 76,078 | (925) | (1) | (4,723) | (6) | ||||||||||||||||||||||||||||
| Retail loans | 69,592 | 69,723 | 71,891 | (131) | — | (2,299) | (3) | ||||||||||||||||||||||||||||
| Total loans and leases | 140,947 | 142,003 | 147,969 | (1,056) | (1) | (7,022) | (5) | ||||||||||||||||||||||||||||
| Loans held for sale, at fair value | 1,384 | 1,181 | 1,266 | 203 | 17 | 118 | 9 | ||||||||||||||||||||||||||||
| Total loans and leases and loans held for sale | 142,331 | 143,184 | 149,235 | (853) | (1) | (6,904) | (5) | ||||||||||||||||||||||||||||
| Total average interest-earning assets | $ | 196,613 | $ | 197,164 | $ | 203,121 | $ | (551) | — | % | $ | (6,508) | (3) | % | |||||||||||||||||||||
(1) Total average interest-earning assets excludes the mark-to-market on investment securities and unsettled purchases or sales of loans and investments. | |||||||||||||||||||||||||||||||||||
| Fourth quarter 2024 | vs. | third quarter 2024 | ||||||
Period-end interest-earning assets of $192.1 billion were down 2% reflecting a $2.4 billion decrease in loans and leases, a $757 million decrease in cash held in interest-bearing deposits, and a $211 million decrease in investments in securities. The decrease in loans and leases reflects a $2.0 billion decline in commercial, driven by market conditions resulting in relatively low client demand and lower line of credit utilization, partially offset by growth in the Private Bank. Results also reflect a $397 million decrease in retail driven by $926 million of Non-Core portfolio run off, partially offset by growth in home equity and mortgage, including the Private Bank.
Average interest-earning assets of $196.6 billion decreased $551 million, reflecting a $1.1 billion decrease in total loans and leases and a $261 million decrease in investments, partially offset by a $563 million increase in cash held in interest-bearing deposits. The decrease in loans and leases reflects a $925 million decrease in commercial and a $131 million decrease in Retail.
The average effective duration of the securities portfolio was 3.7years, compared with 3.3 years at September 30, 2024 and 3.9 years at December 31, 2023.
| Fourth quarter 2024 | vs. | fourth quarter 2023 | ||||||
Period-end interest-earning assets of $192.1 billion decreased $4.9 billion, or 2%, reflecting a $6.7 billion decrease in total loans and leases and loans held for sale and a $412 million decrease in investments in cash held in interest-bearing deposits, partially offset by a $2.2 billion increase in investments in securities. The decrease in loans and leases reflects a $4.7 billion decline in commercial given market conditions resulting in relatively low client demand and lower line of credit utilization, partially offset by growth in Private Bank. Retail decreased $2.1 billion given $4.2 billion of Non-Core portfolio run off, partially offset by growth in home equity and mortgage, including the Private Bank.
Average interest-earning assets of $196.6 billion decreased $6.5 billion, or 3%, reflecting a $6.9 billion decrease in total loans and leases and loans held for sale, partially offset by a $3.3 billion increase in investments in securities and a $2.9 billion decrease in cash held in interest-bearing deposits.
9
Citizens Financial Group, Inc.
| Deposits | 4Q24 change from | ||||||||||||||||||||||||||||||||||
| ($s in millions) | 4Q24 | 3Q24 | 4Q23 | 3Q24 | 4Q23 | ||||||||||||||||||||||||||||||
| Period-end deposits | $ | % | $ | % | |||||||||||||||||||||||||||||||
| Non-interest bearing demand | $ | 36,920 | $ | 35,978 | $ | 37,107 | $ | 942 | 3 | % | $ | (187) | (1) | % | |||||||||||||||||||||
| Money market | 55,321 | 54,654 | 53,812 | 667 | 1 | 1,509 | 3 | ||||||||||||||||||||||||||||
| Checking with interest | 33,246 | 33,680 | 31,876 | (434) | (1) | 1,370 | 4 | ||||||||||||||||||||||||||||
| Savings | 25,976 | 26,489 | 27,983 | (513) | (2) | (2,007) | (7) | ||||||||||||||||||||||||||||
| Time | 23,313 | 24,387 | 26,564 | (1,074) | (4) | (3,251) | (12) | ||||||||||||||||||||||||||||
| Total period-end deposits | $ | 174,776 | $ | 175,188 | $ | 177,342 | $ | (412) | — | % | $ | (2,566) | (1) | % | |||||||||||||||||||||
| Average deposits | |||||||||||||||||||||||||||||||||||
| Non-interest bearing demand | $ | 36,704 | $ | 36,236 | $ | 38,390 | $ | 468 | 1 | % | $ | (1,686) | (4) | % | |||||||||||||||||||||
| Money market | 54,548 | 53,152 | 53,003 | 1,396 | 3 | 1,545 | 3 | ||||||||||||||||||||||||||||
| Checking with interest | 32,720 | 33,090 | 31,788 | (370) | (1) | 932 | 3 | ||||||||||||||||||||||||||||
| Savings | 26,237 | 26,868 | 28,455 | (631) | (2) | (2,218) | (8) | ||||||||||||||||||||||||||||
| Time | 24,053 | 24,705 | 25,492 | (652) | (3) | (1,439) | (6) | ||||||||||||||||||||||||||||
| Total average deposits | $ | 174,262 | $ | 174,051 | $ | 177,128 | $ | 211 | — | % | $ | (2,866) | (2) | % | |||||||||||||||||||||
| Fourth quarter 2024 | vs. | third quarter 2024 | ||||||
Total period-end deposits of $174.8 billion are broadly stable, reflecting a reduction in higher-cost Treasury and Commercial deposits, largely offset by $3.3 billion of Consumer deposit growth, including $1.4 billion of growth in the Private Bank. Non-interest bearing demand deposits increased $942 million reflecting seasonal growth in Commercial and Private Bank growth.
Average deposits of $174.3 billion are broadly stable reflecting $1.7 billion of growth in Private Bank deposits, largely offset by a reduction in higher-cost Treasury and Commercial deposits.
| Fourth quarter 2024 | vs. | fourth quarter 2023 | ||||||
Average deposits of $174.3 billion decreased 2%. Total period-end deposits of $174.8 billion decreased 1% given a reduction in higher-cost Treasury deposits and lower Commercial balances, largely offset by growth in Private Bank deposits of $5.8 billion.
10
Citizens Financial Group, Inc.
| Borrowed Funds | 4Q24 change from | ||||||||||||||||||||||||||||||||||
| ($s in millions) | 4Q24 | 3Q24 | 4Q23 | 3Q24 | 4Q23 | ||||||||||||||||||||||||||||||
| Period-end borrowed funds | $ | % | $ | % | |||||||||||||||||||||||||||||||
| Short-term borrowed funds | $ | — | $ | 15 | $ | 505 | $ | (15) | (100) % | $ | (505) | (100) | % | ||||||||||||||||||||||
| Long-term borrowed funds | |||||||||||||||||||||||||||||||||||
| FHLB advances | 53 | 553 | 3,786 | (500) | (90) | (3,733) | (99) | ||||||||||||||||||||||||||||
| Senior debt | 7,168 | 7,766 | 5,170 | (598) | (8) | 1,998 | 39 | ||||||||||||||||||||||||||||
| Subordinated debt and other debt | 1,805 | 1,824 | 1,819 | (19) | (1) | (14) | (1) | ||||||||||||||||||||||||||||
| Auto collateralized borrowings | 3,375 | 3,801 | 2,692 | (426) | (11) | 683 | 25 | ||||||||||||||||||||||||||||
| Total borrowed funds | $ | 12,401 | $ | 13,959 | $ | 13,972 | $ | (1,558) | (11) | % | $ | (1,571) | (11) | % | |||||||||||||||||||||
| Average borrowed funds | |||||||||||||||||||||||||||||||||||
| Short-term borrowed funds | $ | 41 | $ | 150 | $ | 491 | $ | (109) | (73) % | $ | (450) | (92) | % | ||||||||||||||||||||||
| Long-term borrowed funds | |||||||||||||||||||||||||||||||||||
| FHLB advances | 172 | 477 | 5,751 | (305) | (64) | (5,579) | (97) | ||||||||||||||||||||||||||||
| Senior debt | 7,316 | 7,462 | 5,217 | (146) | (2) | 2,099 | 40 | ||||||||||||||||||||||||||||
| Subordinated debt and other debt | 1,808 | 1,758 | 1,816 | 50 | 3 | (8) | — | ||||||||||||||||||||||||||||
| Auto collateralized borrowings | 3,593 | 3,993 | 2,904 | (400) | (10) | 689 | 24 | ||||||||||||||||||||||||||||
| Total average borrowed funds | $ | 12,930 | $ | 13,840 | $ | 16,179 | $ | (910) | (7) | % | $ | (3,249) | (20) | % | |||||||||||||||||||||
| Fourth quarter 2024 | vs. | third quarter 2024 | ||||||
Period-end borrowed funds decreased by $1.6 billion. Senior debt decreased by $598 million, reflecting a redemption. FHLB advances decreased by $500 million driven primarily by continued Non-Core run off. Collateralized borrowings on auto loans decreased $426 million given run off of the associated portfolio.
Average borrowed funds decreased $910 million, largely reflecting a $400 million decrease in collateralized borrowings on auto loans and a $305 million decrease in FHLB advances.
| Fourth quarter 2024 | vs. | fourth quarter 2023 | ||||||
Period-end borrowed funds decreased by $1.6 billion, given a $3.7 billion decrease in FHLB advances and a $505 million decrease in short-term borrowings, partially offset by a $2.0 billion increase in senior debt given issuances and a $683 million increase in auto collateralized borrowings.
Average borrowed funds decreased by $3.2 billion, reflecting a $5.6 billion decrease in FHLB advances driven by the run off of the Non-Core portfolio and re-mixing of funding to auto collateralized borrowings, up $689 million, and senior debt issuances, up $2.1 billion. Short-term borrowed funds decreased $450 million.
11
Citizens Financial Group, Inc.
| Capital | 4Q24 change from | ||||||||||||||||||||||||||||||||||
| ($s and shares in millions, except per share data) | 4Q24 | 3Q24 | 4Q23 | 3Q24 | 4Q23 | ||||||||||||||||||||||||||||||
| Period-end capital | $ | % | $ | % | |||||||||||||||||||||||||||||||
| Stockholders' equity | $ | 24,254 | $ | 24,932 | $ | 24,342 | $ | (678) | (3) | % | $ | (88) | — | % | |||||||||||||||||||||
| Stockholders' common equity | 22,141 | 22,820 | 22,329 | (679) | (3) | (188) | (1) | ||||||||||||||||||||||||||||
| Tangible common equity | 14,246 | 14,931 | 14,417 | (685) | (5) | (171) | (1) | ||||||||||||||||||||||||||||
| Tangible book value per common share | $ | 32.34 | $ | 33.54 | $ | 30.91 | $ | (1.20) | (4) | % | $ | 1.43 | 5 | % | |||||||||||||||||||||
| Common shares - at end of period | 440.5 | 445.2 | 466.4 | (4.7) | (1) | (25.9) | (6) | ||||||||||||||||||||||||||||
| Common shares - average (diluted) | 444.8 | 449.9 | 468.2 | (5.1) | (1) | % | (23.3) | (5) | % | ||||||||||||||||||||||||||
Common equity tier 1 capital ratio(1) | 10.8 | % | 10.6 | % | 10.6 | % | |||||||||||||||||||||||||||||
Total capital ratio(1) | 14.0 | 13.9 | 13.7 | ||||||||||||||||||||||||||||||||
| Tangible common equity ratio | 6.8 | 7.0 | 6.7 | ||||||||||||||||||||||||||||||||
Tier 1 leverage ratio(1) | 9.4 | 9.4 | 9.3 | ||||||||||||||||||||||||||||||||
| (1) Current reporting-period regulatory capital ratios are preliminary. | |||||||||||||||||||||||||||||||||||
| Fourth quarter 2024 | ||
•The CET1 capital ratio of 10.8% as of December 31, 2024 compares with 10.6% at September 30, 2024 and 10.6% at December 31, 2023.
•Total capital ratio of 14.0% compares with 13.9% at September 30, 2024 and 13.7% as of December 31, 2023.
•Tangible common equity ratio of 6.8% compares with 7.0% at September 30, 2024 and 6.7% as of December 31, 2023.
•Tangible book value per common share of $32.34 decreased 3.6% compared with third quarter 2024 reflecting AOCI impacts from higher term rates.
•Paid $188 million in common dividends to shareholders during fourth quarter 2024. This compares with $191 million in common dividends during third quarter 2024 and $198 million during fourth quarter 2023.
•Repurchased $225 million of common shares during fourth quarter 2024, compared with $325 million in third quarter 2024 and no repurchases in fourth quarter 2023.
12
Citizens Financial Group, Inc.
| Credit quality review | 4Q24 change from | |||||||||||||||||||||||||||||||||||||||||||
| ($s in millions) | 4Q24 | 3Q24 | 4Q23 | 3Q24 | 4Q23 | |||||||||||||||||||||||||||||||||||||||
| $/bps | % | $/bps | % | |||||||||||||||||||||||||||||||||||||||||
Nonaccrual loans and leases(1) | $ | 1,664 | $ | 1,687 | $ | 1,364 | $ | (23) | (1) | % | $ | 300 | 22 | % | ||||||||||||||||||||||||||||||
90+ days past due and accruing(2) | 196 | 169 | 333 | 27 | 16 | (137) | (41) | |||||||||||||||||||||||||||||||||||||
| Net charge-offs | 189 | 192 | 171 | (3) | (2) | 18 | 11 | |||||||||||||||||||||||||||||||||||||
| Provision for credit losses | 162 | 172 | 171 | (10) | (6) | (9) | (5) | |||||||||||||||||||||||||||||||||||||
| Allowance for credit losses | $ | 2,259 | $ | 2,286 | $ | 2,318 | $ | (27) | (1) | % | $ | (59) | (3) | % | ||||||||||||||||||||||||||||||
| Nonaccrual loans and leases to loans and leases | 1.20 | % | 1.19 | % | 0.93 | % | 1 | bps | 27 | |||||||||||||||||||||||||||||||||||
| Net charge-offs as a % of total loans and leases | 0.53 | 0.54 | 0.46 | (1) | 7 | |||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses to loans and leases | 1.62 | 1.61 | 1.59 | 1 | 3 | |||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses to nonaccrual loans and leases | 136 | % | 136 | % | 170 | % | — | bps | (34) | bps | ||||||||||||||||||||||||||||||||||
(1)Loans fully or partially guaranteed by the FHA, VA and USDA are classified as accruing. | ||||||||||||||||||||||||||||||||||||||||||||
(2) 90+ days past due and accruing includes $172 million, $145 million, and $243 million of loans fully or partially guaranteed by the FHA, VA, and USDA for December 31, 2024, September 30, 2024, and December 31, 2023, respectively. | ||||||||||||||||||||||||||||||||||||||||||||
| Fourth quarter 2024 | vs. | third quarter 2024 | ||||||
•Nonaccrual loans of $1.7 billion decreased $23 million, or 1%, primarily reflecting a decrease in Commercial, given decrease in General Office as we proceed with workout actions. The nonaccrual loans to total loans ratio of 1.20% compares with 1.19% at September 30, 2024.
•Net charge-offs of $189 million, or 53 basis points of average loans and leases, are broadly stable compared with the prior quarter. A decrease in C&I net charge offs was offset by an increase in commercial real estate, primarily coming from the General Office portfolio. Retail net charge offs were stable.
•The fourth quarter 2024 provision for credit losses of $162 million compares with $172 million for third quarter 2024. The decrease is primarily driven by an improving loan mix given the run off of the Non-Core auto portfolio and originations in retail real estate secured and commercial categories that have a lower loss content profile. The ratio of allowance for credit losses to total loans of 1.62% increased slightly from 1.61% as of September 30, 2024, primarily reflecting lower loan balances given Non-Core run off and C&I and Commercial Real Estate paydowns and balance sheet optimization.
•The allowance for credit losses to nonaccrual loans and leases ratio of 136% was stable with September 30, 2024.
| Fourth quarter 2024 | vs. | fourth quarter 2023 | ||||||
•Nonaccrual loans increased $300 million, or 22%, primarily reflecting an increase in the General Office segment of commercial real estate. The nonaccrual loans to total loans ratio of 1.20% increased from 0.93% at December 31, 2023.
•Net charge-offs of $189 million, or 53 basis points of average loans and leases, increased $18 million, primarily reflecting a $28 million increase in commercial, partially offset by a $10 million decrease in retail.
•Provision for credit losses of $162 million compares with a $171 million provision in fourth quarter 2023.
•Allowance for credit losses of $2.3 billion decreased $59 million compared with December 31, 2023. Allowance for credit losses ratio of 1.62% as of December 31, 2024, compares with 1.59% as of December 31, 2023.
•The allowance for credit losses to nonaccrual loans and leases ratio of 136% compares with 170% as of December 31, 2023.
13
Citizens Financial Group, Inc.
Corresponding Financial Tables and Information
Investors are encouraged to review the foregoing summary and discussion of Citizens’ earnings and financial condition in conjunction with the detailed financial tables and other information available on the Investor Relations portion of the company’s website at www.citizensbank.com/about-us.
Media: Peter Lucht - (781) 655-2289
Investors: Kristin Silberberg - (203) 900-6854
Conference Call
CFG management will host a live conference call today with details as follows:
Time: 9:00 am ET
Dial-in: (800) 369-1703, conference ID 1679767
Webcast/Presentation: The live webcast will be available at http://investor.citizensbank.com under Events & Presentations.
Replay Information: A replay of the conference call will be available beginning at 12:00 pm ET on January 17, 2025 through February 17, 2025. The webcast replay will be available at http://investor.citizensbank.com under Events & Presentations.
About Citizens Financial Group, Inc.
Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $217.5 billion in assets as of December 31, 2024. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a full-service customer contact center and the convenience of approximately 3,100 ATMs and more than 1,000 branches in 14 states and the District of Columbia. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, Citizens offers a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities. More information is available at www.citizensbank.com or visit us on X (formerly Twitter), LinkedIn or Facebook.
14
Citizens Financial Group, Inc.
Non-GAAP Financial Measures and Reconciliations
Non-GAAP Financial Measures:
This document contains non-GAAP financial measures denoted as Underlying. Underlying results for any given reporting period exclude certain items that may occur in that period which Management does not consider indicative of the Company’s on-going financial performance. We believe these non-GAAP financial measures provide useful information to investors because they are used by our Management to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe our Underlying results in any given reporting period reflect our on-going financial performance in that period and, accordingly, are useful to consider in addition to our GAAP financial results. We further believe the presentation of Underlying results increases comparability of period-to-period results. See the following pages for reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures.
Other companies may use similarly titled non-GAAP financial measures that may be calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to similar measures used by such companies. We caution investors not to place undue reliance on such non-GAAP financial measures, but to consider them with the most directly comparable GAAP measures. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for our results reported under GAAP.
15
Citizens Financial Group, Inc.
Non-GAAP financial measures and reconciliations
(in millions, except share, per-share and ratio data)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 Change | 2024 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income (GAAP) | $574 | $532 | $500 | $42 | 8 | % | $74 | 15 | % | $2,176 | $1,983 | $193 | 10 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | 10 | (2) | — | 12 | NM | 10 | 100 | 15 | — | 15 | 100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income, Underlying (non-GAAP) | $564 | $534 | $500 | $30 | 6 | % | $64 | 13 | % | $2,161 | $1,983 | $178 | 9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue (GAAP) | A | $1,986 | $1,901 | $1,988 | $85 | 4 | % | ($2) | — | % | $7,809 | $8,224 | ($415) | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | 10 | (2) | — | 12 | NM | 10 | 100 | 15 | — | 15 | 100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue, Underlying (non-GAAP) | B | $1,976 | $1,903 | $1,988 | $73 | 4 | % | ($12) | (1 | %) | $7,794 | $8,224 | ($430) | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expense, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expense (GAAP) | C | $1,316 | $1,259 | $1,612 | $57 | 5 | % | ($296) | (18 | %) | $5,234 | $5,507 | ($273) | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | 24 | 11 | 345 | 13 | 118 | (321) | (93) | 156 | 506 | (350) | (69) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expense, Underlying (non-GAAP) | D | $1,292 | $1,248 | $1,267 | $44 | 4 | % | $25 | 2 | % | $5,078 | $5,001 | $77 | 2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pre-provision profit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue (GAAP) | A | $1,986 | $1,901 | $1,988 | $85 | 4 | % | ($2) | — | % | $7,809 | $8,224 | ($415) | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Noninterest expense (GAAP) | C | 1,316 | 1,259 | 1,612 | 57 | 5 | (296) | (18) | 5,234 | 5,507 | (273) | (5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-provision profit (non-GAAP) | $670 | $642 | $376 | $28 | 4 | % | $294 | 78 | % | $2,575 | $2,717 | ($142) | (5 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pre-provision profit, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue, Underlying (non-GAAP) | B | $1,976 | $1,903 | $1,988 | $73 | 4 | % | ($12) | (1 | %) | $7,794 | $8,224 | ($430) | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Noninterest expense, Underlying (non-GAAP) | D | 1,292 | 1,248 | 1,267 | 44 | 4 | 25 | 2 | 5,078 | 5,001 | 77 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pre-provision profit, Underlying (non-GAAP) | $684 | $655 | $721 | $29 | 4 | % | ($37) | (5 | %) | $2,716 | $3,223 | ($507) | (16 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income before income tax expense, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income before income tax expense (GAAP) | E | $508 | $470 | $205 | $38 | 8 | % | $303 | 148 | % | $1,888 | $2,030 | ($142) | (7 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Income (expense) before income tax expense (benefit) related to notable items | (14) | (13) | (345) | (1) | (8) | 331 | 96 | (141) | (506) | 365 | 72 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income before income tax expense, Underlying (non-GAAP) | F | $522 | $483 | $550 | $39 | 8 | % | ($28) | (5 | %) | $2,029 | $2,536 | ($507) | (20 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense (GAAP) | G | $107 | $88 | $16 | $19 | 22 | % | $91 | NM | $379 | $422 | ($43) | (10 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Income tax expense (benefit) related to notable items | (3) | (3) | (108) | — | — | 105 | 97 | (43) | (149) | 106 | 71 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense, Underlying (non-GAAP) | H | $110 | $91 | $124 | $19 | 21 | % | ($14) | (11 | %) | $422 | $571 | ($149) | (26 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (GAAP) | I | $401 | $382 | $189 | $19 | 5 | % | $212 | 112 | % | $1,509 | $1,608 | ($99) | (6 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Add: Notable items, net of income tax benefit | 11 | 10 | 237 | 1 | 10 | (226) | (95) | 98 | 357 | (259) | (73) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income, Underlying (non-GAAP) | J | $412 | $392 | $426 | $20 | 5 | % | ($14) | (3 | %) | $1,607 | $1,965 | ($358) | (18 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income available to common stockholders, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income available to common stockholders (GAAP) | K | $367 | $344 | $159 | $23 | 7 | % | $208 | 131 | % | $1,372 | $1,491 | ($119) | (8 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Add: Notable items, net of income tax benefit | 11 | 10 | 237 | 1 | 10 | (226) | (95) | 98 | 357 | (259) | (73) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income available to common stockholders, Underlying (non-GAAP) | L | $378 | $354 | $396 | $24 | 7 | % | ($18) | (5 | %) | $1,470 | $1,848 | ($378) | (20 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
16
Citizens Financial Group, Inc.
Non-GAAP financial measures and reconciliations (continued)
(in millions, except share, per-share and ratio data)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 Change | 2024 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $/bps | % | $/bps | % | $/bps | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating leverage: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue (GAAP) | A | $1,986 | $1,901 | $1,988 | $85 | 4.56 | % | ($2) | 0.02 | % | $7,809 | $8,224 | ($415) | (5.04 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Noninterest expense (GAAP) | C | 1,316 | 1,259 | 1,612 | 57 | 4.61 | (296) | (18.30) | 5,234 | 5,507 | (273) | (4.95) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating leverage | (0.05 | %) | 18.32 | % | (0.09 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating leverage, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue, Underlying (non-GAAP) | B | $1,976 | $1,903 | $1,988 | $73 | 3.89 | % | ($12) | (0.48 | %) | $7,794 | $8,224 | ($430) | (5.22 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Noninterest expense, Underlying (non-GAAP) | D | 1,292 | 1,248 | 1,267 | 44 | 3.50 | 25 | 2.00 | 5,078 | 5,001 | 77 | 1.54 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating leverage, Underlying (non-GAAP) | 0.39 | % | (2.48 | %) | (6.76 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio and efficiency ratio, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio | C/A | 66.27 | % | 66.23 | % | 81.13 | % | 4 | bps | (1,486) | bps | 67.03 | % | 66.97 | % | 6 | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio, Underlying (non-GAAP) | D/B | 65.36 | 65.61 | 63.77 | (25) | bps | 159 | bps | 65.15 | 60.81 | 434 | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Effective income tax rate and effective income tax rate, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Effective income tax rate | G/E | 21.04 | % | 18.56 | % | 7.59 | % | 248 | bps | 1,345 | bps | 20.06 | % | 20.76 | % | (70) | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Effective income tax rate, Underlying (non-GAAP) | H/F | 21.17 | 18.75 | 22.25 | 242 | bps | (108) | bps | 20.80 | 22.48 | (168) | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average tangible common equity and return on average tangible common equity, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average common equity (GAAP) | M | $22,009 | $22,380 | $21,209 | ($371) | (2 | %) | $800 | 4 | % | $21,881 | $21,592 | $289 | 1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Average goodwill (GAAP) | 8,187 | 8,187 | 8,188 | — | — | (1) | — | 8,187 | 8,184 | 3 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Average other intangibles (GAAP) | 136 | 140 | 163 | (4) | (3) | (27) | (17) | 143 | 177 | (34) | (19) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 436 | 435 | 421 | 1 | — | 15 | 4 | 433 | 422 | 11 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average tangible common equity | N | $14,122 | $14,488 | $13,279 | ($366) | (3 | %) | $843 | 6 | % | $13,984 | $13,653 | $331 | 2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average tangible common equity | K/N | 10.36 | % | 9.45 | % | 4.72 | % | 91 | bps | 564 | bps | 9.81 | % | 10.92 | % | (111) | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average tangible common equity, Underlying (non-GAAP) | L/N | 10.66 | 9.71 | 11.84 | 95 | bps | (118) | bps | 10.51 | 13.53 | (302) | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total tangible assets and return on average total tangible assets, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average total assets (GAAP) | O | $217,548 | $218,578 | $223,653 | ($1,030) | — | % | ($6,105) | (3 | %) | $219,024 | $222,221 | ($3,197) | (1 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Average goodwill (GAAP) | 8,187 | 8,187 | 8,188 | — | — | (1) | — | 8,187 | 8,184 | 3 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Average other intangibles (GAAP) | 136 | 140 | 163 | (4) | (3) | (27) | (17) | 143 | 177 | (34) | (19) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 436 | 435 | 421 | 1 | — | 15 | 4 | 433 | 422 | 11 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average tangible assets | P | $209,661 | $210,686 | $215,723 | ($1,025) | — | % | ($6,062) | (3 | %) | $211,127 | $214,282 | ($3,155) | (1 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total tangible assets | I/P | 0.76 | % | 0.72 | % | 0.35 | % | 4 | bps | 41 | bps | 0.71 | % | 0.75 | % | (4) | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total tangible assets, Underlying (non-GAAP) | J/P | 0.78 | 0.74 | 0.78 | 4 | bps | — | bps | 0.76 | 0.92 | (16) | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
17
Citizens Financial Group, Inc.
Non-GAAP financial measures and reconciliations (continued)
(in millions, except share, per-share and ratio data)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 Change | 2024 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $/bps | % | $/bps | % | $/bps | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tangible book value per common share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common shares - at period-end (GAAP) | Q | 440,543,381 | 445,216,549 | 466,418,055 | (4,673,168) | (1 | %) | (25,874,674) | (6 | %) | 440,543,381 | 466,418,055 | (25,874,674) | (6 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stockholders' equity (GAAP) | $22,141 | $22,820 | $22,329 | ($679) | (3) | ($188) | (1) | $22,141 | $22,329 | ($188) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Goodwill (GAAP) | 8,187 | 8,187 | 8,188 | — | — | (1) | — | 8,187 | 8,188 | (1) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Other intangible assets (GAAP) | 146 | 137 | 157 | 9 | 7 | (11) | (7) | 146 | 157 | (11) | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Add: Deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 438 | 435 | 433 | 3 | 1 | 5 | 1 | 438 | 433 | 5 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tangible common equity | R | $14,246 | $14,931 | $14,417 | ($685) | (5 | %) | ($171) | (1 | %) | $14,246 | $14,417 | ($171) | (1 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tangible book value per common share | R/Q | $32.34 | $33.54 | $30.91 | ($1.20) | (4 | %) | $1.43 | 5 | % | $32.34 | $30.91 | $1.43 | 5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income per average common share - basic and diluted and net income per average common share - basic and diluted, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average common shares outstanding - basic (GAAP) | S | 440,802,738 | 446,561,996 | 466,234,324 | (5,759,258) | (1 | %) | (25,431,586) | (5 | %) | 450,678,038 | 475,089,384 | (24,411,346) | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average common shares outstanding - diluted (GAAP) | T | 444,836,786 | 449,913,467 | 468,159,167 | (5,076,681) | (1) | (23,322,381) | (5) | 453,510,245 | 476,693,148 | (23,182,903) | (5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income per average common share - basic (GAAP) | K/S | $0.83 | $0.77 | $0.34 | $0.06 | 8 | $0.49 | 144 | $3.05 | $3.14 | ($0.09) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income per average common share - diluted (GAAP) | K/T | 0.83 | 0.77 | 0.34 | 0.06 | 8 | 0.49 | 144 | 3.03 | 3.13 | (0.10) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income per average common share - basic, Underlying (non-GAAP) | L/S | 0.86 | 0.79 | 0.85 | 0.07 | 9 | 0.01 | 1 | 3.26 | 3.89 | (0.63) | (16) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income per average common share - diluted, Underlying (non-GAAP) | L/T | 0.85 | 0.79 | 0.85 | 0.06 | 8 | — | — | 3.24 | 3.88 | (0.64) | (16) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
18
Citizens Financial Group, Inc.
Non-GAAP financial measures and reconciliations (continued)
(in millions, except share, per-share and ratio data)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 Change | 2024 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $/bps | % | $/bps | % | $/bps | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Card fees, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Card fees (GAAP) | $97 | $93 | $70 | $4 | 4 | $27 | 39% | $368 | $296 | $72 | 24% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | 11 | 6 | — | 5 | 83 | 11 | 100 | 24 | — | 24 | 100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Card fees, Underlying (non-GAAP) | $86 | $87 | $70 | ($1) | (1) | $16 | 23 | % | $344 | $296 | $48 | 16 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income (GAAP) | $28 | $24 | $20 | $4 | 17 | $8 | 40% | $79 | $78 | $1 | 1% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | (1) | (8) | — | 7 | 88 | (1) | (100) | (9) | — | (9) | (100) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income, Underlying (non-GAAP) | $29 | $32 | $20 | ($3) | (9) | $9 | 45 | % | $88 | $78 | $10 | 13 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits (GAAP) | $674 | $647 | $667 | $27 | 4 | % | $7 | 1 | % | $2,657 | $2,599 | $58 | — | 2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | 17 | 4 | 32 | 13 | NM | (15) | (47) | 46 | 67 | (21) | (31) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits, Underlying (non-GAAP) | $657 | $643 | $635 | $14 | 2 | % | $22 | 3 | % | $2,611 | $2,532 | $79 | 3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equipment and software, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment and software(GAAP) | $193 | $194 | $215 | ($1) | (1 | %) | ($22) | (10 | %) | $769 | $756 | $13 | 2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | 3 | 2 | 37 | 1 | 50 | (34) | (92) | 17 | 51 | (34) | (67) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equipment and software, Underlying (non-GAAP) | $190 | $192 | $178 | ($2) | (1 | %) | $12 | 7 | % | $752 | $705 | $47 | 7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outside services, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outside services (GAAP) | $170 | $146 | $174 | $24 | 16 | % | ($4) | (2 | %) | $639 | $687 | ($48) | — | (7 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | 4 | 2 | 13 | 2 | 100 | (9) | (69) | 28 | 68 | (40) | (59) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outside services, Underlying (non-GAAP) | $166 | $144 | $161 | $22 | 15 | % | $5 | 3 | % | $611 | $619 | ($8) | (1 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Occupancy, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Occupancy (GAAP) | $112 | $108 | $125 | $4 | 4 | % | ($13) | (10 | %) | $447 | $492 | ($45) | (9 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | 5 | 1 | 20 | 4 | NM | (15) | (75) | 19 | 70 | (51) | (73) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Occupancy, Underlying (non-GAAP) | $107 | $107 | $105 | $— | — | % | $2 | 2 | % | $428 | $422 | $6 | 1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other operating expense, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other operating expense (GAAP) | $167 | $164 | $431 | $3 | 2 | % | ($264) | (61 | %) | $722 | $973 | ($251) | — | (26 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | (5) | 2 | 243 | (7) | NM | (248) | (102) | 46 | 250 | (204) | (82) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other operating expense, Underlying (non-GAAP) | $172 | $162 | $188 | $10 | 6 | % | ($16) | (9 | %) | $676 | $723 | ($47) | (7 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
19
Citizens Financial Group, Inc.
Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “goals,” “targets,” “initiatives,” “potentially,” “probably,” “projects,” “outlook,” “guidance” or similar expressions or future conditional verbs such as “may,” “will,” “likely”, “should,” “would,” and “could.”
Forward-looking statements are based upon the current beliefs and expectations of management, and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation:
•Negative economic, business and political conditions, including as a result of the interest rate environment, supply chain disruptions, inflationary pressures and labor shortages, that adversely affect the general economy, housing prices, the job market, consumer confidence and spending habits;
•The general state of the economy and employment, as well as general business and economic conditions, and changes in the competitive environment;
•Our capital and liquidity requirements under regulatory standards and our ability to generate capital and liquidity on favorable terms;
•The effect of changes in our credit ratings on our cost of funding, access to capital markets, ability to market our securities, and overall liquidity position;
•The effect of changes in the level of commercial and consumer deposits on our funding costs and net interest margin;
•Our ability to execute on our strategic business initiatives and achieve our financial performance goals across our Consumer and Commercial businesses, including our Private Bank;
•The effects of geopolitical instability, including the wars in Ukraine and the Middle East, on economic and market conditions, inflationary pressures and the interest rate environment, commodity price and foreign exchange rate volatility, and heightened cybersecurity risks;
•Our ability to comply with heightened supervisory requirements and expectations as well as new or amended regulations;
•Liabilities and business restrictions resulting from litigation and regulatory investigations;
•The effect of changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale;
•Changes in interest rates and market liquidity, as well as the magnitude of such changes, which may reduce interest margins, impact funding sources and affect the ability to originate and distribute financial products in the primary and secondary markets;
•Financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses;
•Environmental risks, such as physical or transition risks associated with climate change, and social and governance risks, that could adversely affect our reputation, operations, business, and customers;
•A failure in or breach of our compliance with laws, as well as operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; and
•Management’s ability to identify and manage these and other risks.
In addition to the above factors, we also caution that the actual amounts and timing of any future common stock dividends or share repurchases will be subject to various factors, including our capital position, financial performance, capital impacts of strategic initiatives, market conditions, and regulatory considerations, as well as any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will repurchase shares from or pay any dividends to holders of our common stock, or as to the amount of any such repurchases or dividends.
More information about factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in the “Risk Factors” section in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 as filed with the Securities and Exchange Commission.
Note: Per share amounts and ratios presented in this document are calculated using whole dollars.
20
Citizens Financial Group, Inc.
CFG-IR
21
Document 1
4Q24 and 2024 Financial Results January 17, 2025
2 Forward-looking statements and use of non-GAAP financial measures This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward- looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “goals,” “targets,” “initiatives,” “potentially,” “probably,” “projects,” “outlook,” “guidance” or similar expressions or future conditional verbs such as “may,” “will,” “likely”, “should,” “would,” and “could.” Forward-looking statements are based upon the current beliefs and expectations of management, and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation: • Negative economic, business and political conditions, including as a result of the interest rate environment, supply chain disruptions, inflationary pressures and labor shortages, that adversely affect the general economy, housing prices, the job market, consumer confidence and spending habits; • The general state of the economy and employment, as well as general business and economic conditions, and changes in the competitive environment; • Our capital and liquidity requirements under regulatory standards and our ability to generate capital and liquidity on favorable terms; • The effect of changes in our credit ratings on our cost of funding, access to capital markets, ability to market our securities, and overall liquidity position; • The effect of changes in the level of commercial and consumer deposits on our funding costs and net interest margin; • Our ability to execute on our strategic business initiatives and achieve our financial performance goals across our Consumer and Commercial businesses, including our Private Bank; • The effects of geopolitical instability, including the wars in Ukraine and the Middle East, on economic and market conditions, inflationary pressures and the interest rate environment, commodity price and foreign exchange rate volatility, and heightened cybersecurity risks; • Our ability to comply with heightened supervisory requirements and expectations as well as new or amended regulations; • Liabilities and business restrictions resulting from litigation and regulatory investigations; • The effect of changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale; • Changes in interest rates and market liquidity, as well as the magnitude of such changes, which may reduce interest margins, impact funding sources and affect the ability to originate and distribute financial products in the primary and secondary markets; • Financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses; • Environmental risks, such as physical or transition risks associated with climate change, and social and governance risks, that could adversely affect our reputation, operations, business, and customers; • A failure in or breach of our compliance with laws, as well as operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; and • Management’s ability to identify and manage these and other risks. In addition to the above factors, we also caution that the actual amounts and timing of any future common stock dividends or share repurchases will be subject to various factors, including our capital position, financial performance, capital impacts of strategic initiatives, market conditions, and regulatory considerations, as well as any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will repurchase shares from or pay any dividends to holders of our common stock, or as to the amount of any such repurchases or dividends. More information about factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in the “Risk Factors” section in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 as filed with the Securities and Exchange Commission. Non-GAAP Financial Measures: This document contains non-GAAP financial measures denoted as Underlying. Underlying results for any given reporting period exclude certain items that may occur in that period which Management does not consider indicative of the Company’s on-going financial performance. We believe these non-GAAP financial measures provide useful information to investors because they are used by our Management to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe our Underlying results in any given reporting period reflect our on-going financial performance in that period and, accordingly, are useful to consider in addition to our GAAP financial results. We further believe the presentation of Underlying results increases comparability of period- to-period results. The Appendix presents reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures. Other companies may use similarly titled non-GAAP financial measures that may be calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to similar measures used by such companies. We caution investors not to place undue reliance on such non-GAAP financial measures, but to consider them with the most directly comparable GAAP measures. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for our results reported under GAAP.
3 4Q24 and FY2024 GAAP summary Full Year 4Q24 3Q24 4Q23 Q/Q Y/Y 2024 vs. 2023 $s in millions $/bps % $/bps % 2024 2023 $/bps % Net interest income $ 1,412 $ 1,369 $ 1,488 $ 43 3 % $ (76) (5) % $ 5,633 $ 6,241 $ (608) (10) % Noninterest income 574 532 500 42 8 74 15 2,176 1,983 193 10 Total revenue 1,986 1,901 1,988 85 4 (2) — 7,809 8,224 (415) (5) Noninterest Expense 1,316 1,259 1,612 57 5 (296) (18) 5,234 5,507 (273) (5) Pre-provision profit 670 642 376 28 4 294 78 2,575 2,717 (142) (5) Provision for credit losses 162 172 171 (10) (6) (9) (5) 687 687 — — Income before income tax expense 508 470 205 38 8 303 148 1,888 2,030 (142) (7) Income tax expense 107 88 16 19 22 91 NM 379 422 (43) (10) Net income $ 401 $ 382 $ 189 $ 19 5 % $ 212 112 % $ 1,509 $ 1,608 $ (99) (6) % Preferred dividends 34 38 30 (4) (11) 4 13 137 117 20 17 Net income available to common stockholders $ 367 $ 344 $ 159 $ 23 7 % $ 208 131 % $ 1,372 $ 1,491 $ (119) (8) % $s in billions Average interest-earning assets $ 196.6 $ 197.2 $ 203.1 $ (0.6) — % $ (6.5) (3) % $ 198.1 $ 201.7 $ (3.6) (2) % Average deposits $ 174.3 $ 174.1 $ 177.1 $ 0.2 — % $ (2.9) (2) % $ 174.5 $ 175.3 $ (0.8) — % Performance metrics Net interest margin(1) 2.86 % 2.76 % 2.90 % 10 bps (4) bps 2.84 % 3.09 % (25) bps Net interest margin, FTE(1) 2.87 2.77 2.91 10 (4) 2.85 3.10 (25) Loan-to-deposit ratio (period-end) 79.6 80.8 82.3 (120) (265) 79.6 82.3 (265) ROTCE 10.4 9.5 4.7 91 564 9.8 10.9 (111) Efficiency ratio 66.3 66.2 81.1 4 (1,486) 67.0 67.0 6 Noninterest income as a % of total revenue 29 % 28 % 25 % 95 bps 374 bps 28 % 24 % 374 bps Full-time equivalent colleagues 17,287 17,329 17,570 (42) — (283) (2) 17,287 17,570 (283) (2) % Operating leverage (0.05) % 18.32 % (0.09) % Per common share Diluted earnings $ 0.83 $ 0.77 $ 0.34 $ 0.06 8 % $ 0.49 144 % $ 3.03 $ 3.13 $ (0.10) (3) % Tangible book value $ 32.34 $ 33.54 $ 30.91 $ (1.20) (4) % $ 1.43 5 % $ 32.34 $ 30.91 $ 1.43 5 % Average diluted shares outstanding (in millions) 444.8 449.9 468.2 (5.1) (1) % (23.3) (5) % 453.5 476.7 (23.2) (5) % See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
4 4Q24 and FY24 Underlying financial summary(1) Full Year Q/Q Y/Y 2024 2023 2024 vs. 2023 $s in millions 4Q24 $/bps % $/bps % $/bps % Net interest income $ 1,412 $ 43 3 % $ (76) (5) % $ 5,633 $ 6,241 $ (608) (10)% Noninterest income 564 30 6 64 13 2,161 1,983 178 9 Total revenue 1,976 73 4 (12) (1) 7,794 8,224 (430) (5) Noninterest expense 1,292 44 4 25 2 5,078 5,001 77 2 Pre-provision profit 684 29 4 (37) (5) 2,716 3,223 (507) (16) Provision for credit losses 162 (10) (6) (9) (5) 687 687 — — Net income available to common stockholders $ 378 $ 24 7 % $ (18) (5) % $ 1,470 $ 1,848 $ (378) (20)% Performance metrics Diluted EPS $ 0.85 $ 0.06 8 % $ — — % $ 3.24 $ 3.88 $ (0.64) (16)% Efficiency ratio 65.4 (25) bps 159 bps 65.2 60.8 434 bps Noninterest income as a % of total revenue 29 % 49 bps 338 bps 28 % 24 % 361 bps ROTCE 10.7 % 95 bps (118) bps 10.5 % 13.5 % (302) bps Tangible book value per share $ 32.34 $ (1.20) (4) % $ 1.43 5 % $ 32.34 $ 30.91 $ 1.43 5% 4Q24 FY2024 Notable items impacts Pre-tax EPS Pre-tax EPS ($s in millions except per share data) Integration-related $ (2) $ — $ (10) $ (0.02) TOP and Other items (12) (0.02) (131) (0.19) Total $ (14) $ (0.02) $ (141) $ (0.21) See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
5 ■ CFG performance reflects improving Legacy Core, a net income contribution from the Private Bank and continued drag in Non-Core – Private Bank contributes $0.01 to 4Q24 EPS; first profitable quarter – Non-Core portfolio run off of $0.9 billion in 4Q24; $4.2 billion in 2024 4Q24 Underlying financial performance detail(1) (A) (B) (C) = (A) + (B) (D) (E) = (C) + (D) $s in millions Legacy Core(2) Private Bank Core Non-Core(3) Total CFG Net interest income $1,376 $57.1 $1,433 $(21) $1,412 Noninterest income 553 10.9 564 — 564 Total revenue 1,929 68.1 1,997 (21) 1,976 Noninterest Expense 1,208 60.4 1,268 24 1,292 Pre-provision profit 721 7.7 729 (45) 684 Provision for credit losses 147 — 147 15 162 Income before income tax expense 574 7.7 582 (60) 522 Income tax expense 123 2.0 125 (15) 110 Net income 451 5.7 457 (45) 412 Preferred dividends 34 — 34 — 34 Net income available to common stockholders $417 $5.7 $423 $(45) $378 Contribution to total CFG Diluted EPS $0.94 $0.01 $0.95 $(0.10) $0.85 $s in billions Interest-earning assets (spot) $182 $3.1 $185 $6.9 $192 Loans (spot) 129 3.1 132 6.9 139 Deposits (spot) 168 7.0 175 — 175 Risk-weighted assets (spot) 155 3.5 159 7.0 166 Performance metrics: Net interest margin, FTE(4) 2.94% NM 3.02% (1.12)% 2.87% Loan-to-deposit ratio (spot) 77.0 44.9 75.7 NM 79.6 CET1 capital ratio(5) 11.5 NM 11.3 NM 10.8 ROTCE 11.8 NM 11.9 NM 10.7 Efficiency ratio 62.6 NM 63.5 NM 65.4 Noninterest income as a % of total revenue 28.7 16.1 28.2 NM 28.5 See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
6 2024 Underlying financial performance detail(1) (A) (B) (C) = (A) + (B) (D) (E) = (C) + (D) $s in millions Legacy Core(2) Private Bank Core Non-Core(3) Total CFG Net interest income $5,609 $141.3 $5,750 $(117) $5,633 Noninterest income 2,136 24.7 2,161 — 2,161 Total revenue 7,745 166.1 7,911 (117) 7,794 Noninterest Expense 4,785 194.8 4,980 98 5,078 Pre-provision profit 2,960 (28.8) 2,931 (215) 2,716 Provision for credit losses 626 — 626 61 687 Income before income tax expense 2,334 (28.8) 2,305 (276) 2,029 Income tax expense 499 (7.4) 492 (70) 422 Net income 1,834 (21.4) 1,813 (206) 1,607 Preferred dividends 137 — 137 — 137 Net income available to common stockholders $1,697 $(21.4) $1,676 $(206) $1,470 Contribution to total CFG Diluted EPS $3.74 $(0.05) $3.69 $(0.45) $3.24 $s in billions Interest-earning assets (spot) $182 $3.1 $185 $6.9 $192 Loans (spot) 129 3.1 132 6.9 139 Deposits (spot) 168 7.0 175 — 175 Risk-weighted assets (spot) 155 3.5 159 7.0 166 Performance metrics: Net interest margin, FTE(4) 3.00% NM 3.05% (1.31)% 2.85% Loan-to-deposit ratio (spot) 77.0 44.9 75.7 NM 79.6 CET1 capital ratio(5) 11.5 NM 11.3 NM 10.8 ROTCE 12.1 NM 12.0 NM 10.5 Efficiency ratio 61.8 NM 62.9 NM 65.2 Noninterest income as a % of total revenue 27.6 14.9 27.3 NM 27.7 See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
7 Credit and loan trends Well positioned for the medium term Maintaining strong capital and liquidity position ■ 2024 Underlying net income of $1.6 billion and EPS of $3.24; Delivered FY2024 NIM of 2.85%, the top end of expectations; Fees up 9.0% and expenses up 1.5%, including Private Bank investments. NII down 9.7% given volumes lower than expected, consistent with market opportunities. Credit performed as expected, with net charge-offs of 52 bps ■ Strategic initiatives progressing well: Private Bank, NYC Metro, serving private capital, Balance Sheet Optimization; TOP 9 achieved ~$150 million year-end pre-tax run rate benefit; launching TOP 10 targeting ~$100 million pre-tax run-rate benefit by year-end 2025 ■ Significant NII tailwind from Non-Core and swaps over the medium term; target NIM range of 3.25 to 3.50% ■ Net charge-offs of 53 bps, stable QoQ; favorable trends in NPAs and criticized assets ■ ACL coverage increased 1 bp QoQ to 1.62%; General Office reserve of 12.4% ■ Period-end loans down 1.7% QoQ, driven by continued Non-Core run off, lower C&I and CRE, partially offset by growth in Private Bank lending, up $1.1 billion to $3.1 billion; Core loans down ~1% ■ CET1 ratio of 10.8%(2); 9.1% adjusted for AOCI opt-out removal ■ Strong liquidity profile; spot LDR of 79.6%; pro forma LCR of 119% exceeds Category I Bank requirement of 100% – Average deposits stable QoQ; Private Bank spot deposits up $1.4 billion to $7.0 billion – Increased structural funding; issued $3.25 billion of senior debt in 2024; reduced FHLB advances to $53 million, down $3.7 billion YoY on a spot basis 4Q24 and FY2024 Underlying results ■ 4Q24 Underlying EPS of $0.85; ROTCE of 10.7% ■ 4Q24 Underlying PPNR of $684 million, up 4% QoQ – NII up 3.1% driven by a 10 bp increase in NIM to 2.87% – Fees up 5.6% primarily reflecting higher Capital Markets fees – Expenses up 3.5% driven by investments, including Private Bank and Commercial middle market – Underlying sequential positive operating leverage of ~50 bps 4Q24 and FY2024 Overview(1) See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. Underlying PPNR drivers 4Q24 QoQ FY24 YoY NII $ 1,412 3.1 % $ 5,633 (9.7) % Fees 564 5.6 % 2,161 9.0 % Expenses 1,292 3.5 % 5,078 1.5 % $s in millions
8 2.77% 0.03% 0.02% (0.17)% 0.22% 2.87% 3Q24 Non-Core impact Fixed-rate asset repricing Asset yields & mix, net of swaps* Funding pricing & mix 4Q24 $203.1B $200.1B $198.5B $197.2B $196.6B $1,488 $1,442 $1,410 $1,369 $1,412 2.91% 2.91% 2.87% 2.77% 2.87% 4Q23 1Q24 2Q24 3Q24 4Q24 ■ NII up 3.1%, reflects a higher NIM and slightly lower interest- earning assets – NIM of 2.87%, up 10 bps QoQ, given the benefit of lower deposit costs and improved mix, fixed-rate asset repricing and Non-Core run off, partially offset by the impact of variable-rate asset repricing, net of receive-fixed swaps ■ Interest-earning assets yield of 4.96%, down 13 bps, reflects variable-rate asset repricing given lower short-term rates, partially offset by the benefit of fixed-rate asset repricing and lower receive-fixed swap expense ■ Interest-bearing deposit costs decreased 31 bps to 2.55%; cumulative interest-bearing deposit down-beta of ~50% ■ Total deposit costs down 24 bps to 2.02%; total cost of funds down 25 bps to 2.23% Net interest income NII and NIM Average interest-earning assets Net interest income NIM, FTE Linked Quarter NIM 3Q24 to 4Q24 $s in millions, except earning assets *Includes 8 bp benefit related to lower receive-fixed swap expense
9 ■ Underlying noninterest income increased 5.6%, reflecting the following key business drivers: – Capital markets fees increased $27 million, largely driven by higher loan syndication and M&A fees, partially offset by lower debt underwriting fees – Wealth fees decreased $1 million, reflecting lower transactional sales activity, largely offset by higher asset management fees – Mortgage banking fees increased $14 million, primarily driven by higher MSR valuation net of hedge impact – Foreign exchange and derivative products revenue decreased $1 million, given lower client hedging activity in commodities and interest rates, partially offset by higher FX revenue $500 $517 $553 $532 $574 $500 $514 $549 $534 $564 Underlying Notable items 4Q23 1Q24 2Q24 3Q24 4Q24 Noninterest income(1) $s in millions ■ Underlying noninterest income increased 13%, reflecting the following key business drivers: – Capital markets fees increased $34 million, driven by higher loan syndication and M&A fees – Card fees increased $16 million, largely due to the impact of favorable vendor contract negotiations – Wealth fees increased $7 million, reflecting higher asset management fees, partially offset by lower transactional sales activity – Mortgage banking fees increased $3 million, given higher production fees and MSR valuation net of hedges, partially offset by lower servicing revenue – FX and derivative products revenue decreased $8 million primarily due to lower client activity in commodities and interest rate hedging See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. Linked Quarter Year-Over-Year Noninterest income $s in millions 4Q24 3Q24 4Q23 $ Q/Q Y/Y Service charges and fees $ 109 $ 109 $ 104 $ — $ 5 Capital markets fees 121 94 87 27 34 Card fees 86 87 70 (1) 16 Wealth fees(2) 75 76 68 (1) 7 Mortgage banking fees 60 46 57 14 3 FX and derivative products 35 36 43 (1) (8) Letter of credit and loan fees 45 45 42 — 3 Securities gains, net 4 9 9 (5) (5) Other income(3) 29 32 20 (3) 9 Noninterest income, underlying $ 564 $ 534 $ 500 $ 30 $ 64 Notable items (4) 10 (2) — 12 10 Noninterest income, reported $ 574 $ 532 $ 500 $ 42 $ 74 * Noninterest Income details *3Q24 has notable items of ($2MM)
10 ■ Underlying noninterest expense of $1.3 billion, up 3.5% – Salaries and benefits increased $14 million, primarily reflecting hiring related to the Private Bank and Private Wealth build-out and Commercial middle market bankers in expansion markets – Equipment and software decreased $2 million – Outside services increased $22 million largely reflecting elevated vendor-related costs and seasonality – Other operating expense increased $10 million, primarily reflecting higher marketing-related costs and travel Noninterest expense(1) See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. Efficiency ratio Underlying expense up 3.5% QoQ reflecting investments in Private Bank and Commercial Linked Quarter Year-Over-Year 81.1% 69.3% 66.3% 66.2% 66.3% 63.8% 65.1% 64.6% 65.6% 65.4% Underlying Notable items 4Q23 1Q24 2Q24 3Q24 4Q24 4Q24 3Q24 4Q23 $ $s in millions Q/Q Y/Y Salaries & employee benefits $ 657 $ 643 $ 635 $ 14 $ 22 Equipment & software 190 192 178 (2) 12 Outside services 166 144 161 22 5 Occupancy 107 107 105 — 2 Other operating expense 172 162 188 10 (16) Noninterest expense, underlying $ 1,292 $ 1,248 $ 1,267 $ 44 $ 25 Notable items (1) 24 11 345 13 (321) Noninterest expense, reported $ 1,316 $ 1,259 $ 1,612 $ 57 $ (296) Full-time equivalents (FTEs) 17,287 17,329 17,570 (42) (283) ■ Underlying noninterest expense of $1.3 billion, up 2% – Salaries and benefits increased $22 million, reflecting hiring related to the Private Bank and Private Wealth build-out and Commercial middle market bankers in expansion markets, as well as a broader increase in salaries and benefits – Equipment and software increased $12 million given technology investments and maintenance – Other operating expense decreased $16 million, primarily reflecting lower fraud losses, deposit insurance and travel-related costs
11 $148.0 $144.8 $143.1 $142.0 $140.9 $11.7 $10.5 $9.4 $8.4 $7.4 $136.3 $134.3 $133.7 $133.6 $133.5 Non-Core Core Loan yield 4Q23 1Q24 2Q24 3Q24 4Q24 ~11% QoQ ■ Period-end loans down 1.7% including Non-Core portfolio run off of $0.9 billion; Core loans down ~1% – Private Bank growth of $1.1 billion – Retail* up $0.3 billion driven by home equity and mortgage – Commercial* down $2.9 billion reflecting market conditions resulting in low client demand and lower line utilization, along with continued BSO actions ■ Average loans down 0.7%; Core loans stable ■ Loan yield of 5.35%, down 15 bps QoQ, including the benefit of lower swap expense Loans and leases $s in billions Period-end Core loans down ~1% QoQ with Private Bank growth largely offsetting Commercial declines Average loans and leases $146.0 $143.2 $141.8 $141.6 $139.2 $11.1 $9.9 $8.9 $7.9 $6.9 $134.9 $133.3 $132.9 $133.7 $132.3 Non-Core Core 4Q23 1Q24 2Q24 3Q24 4Q24 $s in billions Period-end loans and leases 5.71% 5.64% 5.60% 5.50% 5.35% Linked Quarter Year-Over-Year ~12% QoQ ~1% QoQ Stable QoQ *Excludes Non-Core portfolio and Private Bank. See page 54 for details. ■ Period-end loans down $6.8 billion, or 4.6%, reflecting – Non-Core portfolio run off of $4.2 billion – Private Bank growth of $2.9 billion – Retail* up $1.3 billion driven by home equity and mortgage – Commercial* down $6.7 billion reflecting market conditions and continued BSO actions ■ Average loans down $7.0 billion, or 4.7%
12 $177.1 $176.1 $173.7 $174.1 $174.3 4Q23 1Q24 2Q24 3Q24 4Q24 Deposit performance and cost of funds Strong growth in franchise deposits driven by the Private Bank $s in billions 4Q24 Average deposits 2.18% 2.25% 2.24% 2.26% 2.02% 2.79% 2.85% 2.82% 2.86% 2.55% Total deposit costs Interest-bearing deposit costs CommercialConsumer Treasury/Other Year-Over-Year 4Q24 Period-end deposits Linked Quarter ■ Period-end deposits broadly stable, driven by a reduction in higher-cost Treasury and Commercial deposits, offset by growth in retail and Private Bank deposits – Private Bank deposits of $7.0 billion increased $1.4 billion – Citizens Access period-end deposits slightly lower at $10.4 billion ■ Average deposits broadly stable reflecting growth in retail and $1.7 billion growth in Private Bank, largely offset by a reduction in higher-cost Treasury and Commercial deposits ■ Interest-bearing deposit costs down 31 bps – Cumulative interest-bearing deposit down-beta of ~50% ■ Total deposit costs down 24 bps ■ Total cost of funds down 25 bps $s in billions ■ Average deposits down 1.6%; Period-end deposits down $2.6 billion, or 1.4% reflecting a reduction in higher-cost Treasury deposits and lower Commercial balances, largely offset by growth in Private Bank deposits ■ Interest-bearing deposit costs down 24 bps ■ Total deposit costs down 16 bps ■ Total cost of funds down 21 bps $177.3 $176.4 $176.4 $175.2 $174.8 Consumer Commercial Treasury/Other 4Q23 1Q24 2Q24 3Q24 4Q24
13 NIB 21% Money Market 32%Checking With Interest 19% Citizens Access Savings 5% Savings 10% Time 13% Branch Deposits 53% Citizens Access 6% Wealth 1% Business Banking 12% Commercial 25% Treasury/ Other 3% (As of 12/31/24) Highly diversified and retail-oriented deposit base $174.8B Period-end deposits Peer Avg(1) Business mix Product mix See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. Total deposits insured/secured(2) Stable Consumer Banking deposits Peer Avg(1) 42% 41% 42% 21% 21% 21% 21% 20% 21% NIB Low-cost deposits 4Q23 3Q24 4Q24 % NIB and low- cost deposits (3) 55% 70% 71% 3Q24 3Q24 4Q24 63% 68% 67% 3Q24 3Q24 4Q24 Proforma LCR under Category I Bank rules 119% 122% 119% 2Q24 3Q24 4Q24 100%* *Minimum LCR requirement under Category I Bank rules
14 ■ NCOs of $189 million, or 53 bps of average loans, compares with $192 million, or 54 bps, in the prior quarter. A sequential decline in C&I charge-offs was offset by the resolution of several nonperforming credits in CRE, primarily General Office ■ Nonaccrual loans decreased 1% QoQ primarily reflecting a decrease in CRE General Office from paydowns and charge offs as we proceed with workout actions $171 $171 $182 $172 $162$171 $181 $184 $192 $189 0.46% 0.50% 0.52% 0.54% 0.53% Provision for credit losses Net charge-offs Net c/o ratio 4Q23 1Q24 2Q24 3Q24 4Q24 Credit quality overview $s in millions $s in millions Credit provision expense; net charge-offs (1) $1,364 $1,469 $1,527 $1,687 $1,664 $774 $891 $939 $1,071 $1,017 $590 $578 $588 $616 $647 170% 157% 151% 136% 136% Commercial Retail ACL to nonaccrual loans and leases 4Q23 1Q24 2Q24 3Q24 4Q24 $s in millions Nonaccrual loans
15 3Q24 4Q24 ACL % Coverage ACL % Coverage Retail $ 935 1.34 % $ 964 1.39 % Commercial 1,351 1.88 1,295 1.86 C&I(2) 621 1.42 592 1.39 CRE 730 2.61 703 2.58 Total $ 2,286 1.61 % $ 2,259 1.62 % Allowance for credit losses $s in millions Allowance for credit losses detail Current assumptions Property valuations, peak-to-trough % decline ~70% Avg. loss severity (%) ~42% Default rate (%) ~29% General Office ACL coverage 12.4% Allowance for credit losses $364 million General Office key reserve assumptions ■ CRE General Office portfolio of $2.9 billion, down ~$226 million, or 7%, QoQ driven by paydowns and charge-offs ■ Strong ACL coverage of General Office informed by a severe recession scenario combined with a loan-by-loan analysis – ACL coverage for CRE General Office increased to 12.4% from 12.1% in 3Q24, reflecting the lower portfolio balance – NCOs of~$433 million since March 31, 2023 plus the current ACL balance of $364 million equates to a potential loss rate of ~20%* See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. 3Q24 4Q24 Balance ($B) $ 3.2 $ 2.9 ACL ($MM; % coverage) $ 382 12.1 % $ 364 12.4 % Cumulative NCOs* ($MM) $ 364 $ 433 CRE General Office reserve *Cumulative losses since 3/31/23; loan balance of $4.1B at 3/31/23 $2,318 $2,308 $2,306 $2,286 $2,259 1.25% 1.25% 1.25% 1.34% 1.39% 1.91% 1.96% 1.99% 1.88% 1.86% Retail Commercial Retail ACL Commercial ACL 4Q23 1Q24 2Q24 3Q24 4Q24 $s in millions Allowance for credit losses (1) *Potential loss rate calculated relative to the $4.1B General Office portfolio balance at 3/31/23, the start of loss emergence.
16 Strong capital position $s in billions (period-end) 4Q23 1Q24 2Q24 3Q24 4Q24 Basel III basis(1)(2) Common equity tier 1 capital $ 18.4 $ 18.1 $ 18.1 $ 17.9 $ 17.9 Risk-weighted assets $ 172.6 $ 170.1 $ 168.4 $ 168.6 $ 165.7 Common equity tier 1 ratio 10.6 % 10.6 % 10.7 % 10.6 % 10.8 % Tier 1 capital ratio 11.8 % 11.8 % 12.0 % 11.9 % 12.1 % Total capital ratio 13.7 % 13.8 % 14.0 % 13.9 % 14.0 % Tangible common equity ratio 6.7 % 6.5 % 6.5 % 7.0 % 6.8 % See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. TBV/share CET1 $ % 3Q24 10.6% $33.54 Net Income 0.24 0.91 2.7% Common and preferred dividends (0.13) (0.50) (1.5) RWA decrease 0.18 Treasury stock (0.13) (0.13) (0.4) Goodwill and intangibles (0.01) (0.01) — AOCI — (1.52) (4.5) Other 0.01 0.05 0.1 Total change 0.16 (1.20) (3.6)% 4Q24 10.8% $32.34 CET1 ratio remains strong(3) Highlights ■ 4Q24 CET1 ratio of 10.8%(1) compares with 10.6% in 3Q24 – 9.1% CET1 ratio adjusted for AOCI opt-out removal ■ TBV/share of $32.34, down 3.6% QoQ, reflects the AOCI impact from unrealized losses associated with higher term rates – Tangible common equity ratio of 6.8%, down 25 bps QoQ ■ Total capital returned to shareholders was $413 million in 4Q24 – Paid $188 million in common dividends to shareholders in 4Q24 – Repurchased $225 million of common stock at a weighted-average price of $44.06 in 4Q24 ■ For FY2024, repurchased $1.05 billion of common stock, representing 28.1 million shares, or 6% of outstanding shares at the beginning of the year at a weighted- average price of $37.35
17 ■ Strong deposit franchise grounded in primary relationships and high-quality customer growth ■ Differentiated lending platform with focus on building relationships ■ Significant potential to scale NY Metro and capture more affluent households Consumer Commercial Private Bank ■ Building premier Private Bank with exceptional service model ■ High-quality growth in deposits, lending and wealth management ■ Geographically-aligned teams to leverage and deepen relationships ■ Full suite of Capital Markets & Advisory capabilities and Treasury Solutions ■ Integrated coverage model with focus on attractive high-growth markets, private capital and industry verticals ■ Digitization and operational transformation Well-positioned businesses Transformed Best-positioned Premier Grow high-quality deposits and deepen customer relationships Drive scale in growth markets, key industries, high-opportunity businesses Deliver high- quality solutions and advice Continue to optimize balance sheet and business mix Invest in our people and communities Strategic objectives Next Gen Tech Mobile/Digital Talent Risk Management Brand/Marketing Enablers
18 44% 52% 52% 53% 54% 55% 55% 56% 56% 58% 63% Peer 1 Peer 2 Peer 3 CFG Peer Avg. Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Transformed Consumer Bank Helped drive company-wide beta better than peer average this past cycle(4) Cumulative IBD beta (4Q21 to 3Q24) Consumer Deposits as % of Total Deposits(2) Insured/Secured as % of Total Deposits(3) 71% 67% 55% 63% CFG Peer Average Retail-oriented and highly insured/secured CFG deposit base Significant investments over the years have resulted in a higher-quality retail deposit franchise Scaled customer base Greater engagement ~56% Of households* are mass affluent and above(1) (Dec '24) ~2.5MM Households* at Dec'24; up ~15% since Dec '19 ~20% Growth in average low- cost deposit balances per household* (Dec '19-Dec '24) ~17% Primary household* growth (Dec '19-Dec '24) Guided digital onboarding Virtual chat assistant Citizens Savings Tracker Improved capabilities New channel in 2018 Better targeting with analytics: #2 mobile app New features: ~21% Multi-product household* growth (Dec '20-Dec '24) Among Regionals JD Power 2024 Customer Satisfaction Ranking *Household defined as retail branch checking households; excludes Citizens Access, Business Banking and Private Bank 4Q24 See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
19 Accelerate Treasury Solutions, Payments and digital capabilities Building momentum for 2025 Best-positioned Commercial Bank Delivering results Strong league table results Middle market bookrunner by deal count 12 months ended December 31, 2024(1) Sponsor #2 Overall #7 Capital Markets Fees Treasury Solutions Revenue CAGR 2015 to 2024 +10%+18% ■ Grow relationships in middle market, mid-corporate, subscription finance and asset-backed finance ■ Allocating capital to higher returning C&I relationships; managing down CRE exposure ■ Strong national coverage; building high-performing middle market teams in Florida and California and leveraging expanded NYC Metro presence ■ Focused on high-potential sectors, e.g., healthcare, with centralized banker coverage model to support mid-corp and middle market clients Expand geographies, segments and industry verticals ■ Expand partnerships and explore platform acquisitions to drive a leading solutions business ■ Building vertical solutions and embedded banking capabilities to increase payments fees Invest in talent with a focus on Private Capital Remix the balance sheet ■ Deepen the industry expertise we bring to financial sponsors and corporate clients ■ Leverage strong collaboration across Commercial, Private Bank and Private Wealth to serve Private Capital Leverage investments in capabilities ■ JMP well positioned for a rebound in IPO activity ■ DH Capital continuing to benefit from increased activity including M&A in digital infrastructure Improving Corporate Banking Net Promoter Score 9 points since 2016 CFG 2024 NPS is 34 points above industry norm(2) See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
20 $11.0$12.0 Building a premier Private Bank Three advisor teams added in 2024 $0.2 $1.2 $2.4 $4.0 $5.6 $7.0 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 $0.2$0.4 $0.5 $3.6$4.1 $4.7 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Avg. yield of ~7% ■ Hired wealth teams in San Francisco, Boston, and South Florida ■ Robust pipeline of advisors interested in our platform Total deposit cost of ~2.5% Loans ■ Deliver a world-class client experience ■ Build a distinctive HNW/UHNW brand ■ Investing in both bank and wealth product capabilities ■ Selectively add talent and expand geographically $s in billions $— $0.3 $1.1$1.4$2.0 $3.1 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Deposits As of 12/31/24 ■ 71% commercial; 29% retail ■ Launched Partner Loan Program in 3Q Positioning to win Financial profitability Expanding our PBO footprint AUM Momentum with high-quality growth $s in billions $s in billions ■ Generating $1B+ deposits quarterly in 2024 YTD ■ ~35% Noninterest-bearing Boston, MA Mill Valley, CA San Francisco, CA Palm Beach, FL New York, NY (1H25) Menlo Park, CA (2H25) Newport Beach, CA (2H25) San Diego, CA (2H25) ■ Business delivered first quarter of profitability in 4Q24 ■ Expect 5%+ earnings contribution to total CFG in 2025 ■ Confident the business will deliver a ~20 to 24% return on equity in the medium term 2025 Target $9.0 $7.0 RevisedOriginal $10.0$11.0 2025 Target 2025 Target
21 FY23 FY24 Building a leading NYC Metro/NJ franchise NYC Metro NPS +37 pts since mid-2022 $10.0 $10.8 Dec-23 Dec-24 Retail deposit growth ($ billions) Retail HH growth(1) +8% YoY +7% YoY Early momentum taking retail deposit share Driving brand awareness Building a strong brand in the highly competitive NY/NJ market Generating awareness of strong brand Taking a local/neighborhood-based approach Emphasis on attracting affluent+ households Prioritizing relationships with broad product suite Upgrading and Investing in talent ■ ~4K middle market companies with full relationship potential ■ Aligned coverage model to emphasize greater local market knowledge and accountability ■ Delivering sector-focused M&A advisory and capital markets solutions in partnership with the Investment Bank and Sponsor Coverage ■ Utilizing "One Citizens" approach with emerging middle-market companies ■ Adding talent from large in-market competitors to help grow market share Significant Commercial opportunity 4Q21 4Q24 Target growth Corporate Banking relationships in NYC Metro ~160 ~300 ~10% p.a. See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
22 FY2025 Outlook vs. 2024 2024 Underlying(1) 2025 Underlying outlook Net interest income $5,633MM Up 3-5% NIM 2.85% FY2025 NIM of ~3.00% Loans $139.2B spot $142.7B average Spot loans up low single digits driven by Private Bank and 2H25 Commercial activity; up mid single digits excluding Non-Core Average loans down ~2-3% reflecting 2H24 drop and continuing Non-Core run off Interest-earning assets $198.1B average Down ~1% Noninterest income $2,161MM Up ~8-10% driven primarily by Capital Markets and Wealth Noninterest expense $5,078MM Up ~4%*; up ~2.6% ex Private Bank & Private Wealth Net charge-off ratio $746MM; 52 bps ~$650MM-$700MM; high-40s bps; ACL likely to see releases over the course of the year CET1 ratio(2) 10.8% 10.5-10.75%; share repurchases dependent on market conditions and loan growth Tax rate 20.8% ~21% ■ FY2025 average real GDP growth of ~2%, CPI of ~2.5% and unemployment rate of ~4% ■ Fed funds of 4% by YE2025 with 25 bps rate cuts in Q2 and Q4 ■ 10-year Treasury rate of ~4.50-4.75% by YE2025 ■ Expect positive operating leverage in FY2025 of ~1.5% ■ Cumulative IBD down-beta to approach low/mid 50s by YE2025 ■ Expect Private Bank to contribute 5%+ to FY2025 earnings ■ Progressing towards medium-term financial targets Full-year 2025 outlook commentary Key 2025 economic and rate assumptions *Underlying noninterest expense outlook includes TOP-related costs See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
23 $4,883 CFG ex Private Bank FY24 TOP/ Other efficiencies Strategic investments Compensation/ Other CFG ex Private Bank FY25 $195 Private Bank FY24 Full-year impact of '24 investments Strategic investments/ Other Private Bank FY25 Underlying expenses in $s in millions FY2025 Underlying expense outlook(1) Incremental expense growth impact of ~1.4% to total CFG Up ~2.6% $5,078 $5,300 Total CFG FY24 Total CFG FY25 Total CFG Up ~4% ~$5.0B * *Adjustment to reflect annualized impact of 2024 investments ~$35 ~$0.3 B ~$5.3 B Private Bank & Private Wealth CFG ex Private Bank & Private Wealth See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. ~$60 ~$180 ~$115 ~$(170)
24 Revenue Efficiencies and tax 2014 TOP 1 2015 TOP 2 2016 TOP 3 2017 TOP 4 2018 TOP 5 '19-21 TOP 6 2022 TOP 7 2023 TOP 8 2024 TOP 9 2025 TOP 10 ~$200 TOP programs key to driving positive operating leverage Transforming how we operate and deliver for customers and colleagues TOP program revenue and efficiency benefits$s in millions ~$140 ~$115 ~$115 ~$105 ~$425 ~$115 ~$115 TOP 9 achieved pre-tax run-rate benefit of ~$150 million as of YE2024 TOP 10 targeting ~$100 million pre-tax run-rate benefit by YE2025 ~$150 Commentary ■ Maintain discipline on discretionary expense categories ■ TOP 10 areas of focus – Optimize procurement/vendor costs – Transform operations with process reengineering, automation and AI – Simplify organization structure – Further optimize branch network – Further invest in data analytics to enhance customer experience – Invest in Card analytics, products and digital experience ~$100* *Target.
25 1Q25 outlook vs. 4Q24 See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. 4Q24 Underlying(1) 1Q25 Underlying outlook Net interest income $1,412MM Down 1.5 to 2.5%, reflects day count impact of ~$25MM Noninterest income $564MM Down ~2% given seasonality Noninterest expense $1,292MM Up 1.5-2% given seasonality Net charge-offs $189MM; 53 bps Down moderately; continued reserve release expected CET1 ratio(2) 10.8% 10.50-10.75%; expect share repurchases Tax rate 21.2% 20-21%
26 Medium-term financial targets(1) Medium-term financial targets ROTCE(1) CET1 Dividend Payout Ratio Efficiency Ratio(1) ~16-18% ~10.00-10.50% ~35-40% Mid-50's % Key economic assumptions ■ Real GDP growth averaging ~2-2.5% annually over the medium term ■ Unemployment rate centered around ~4% over the medium term ■ Fed funds reaching terminal rate of ~3.50% by YE2027 ■ NII tailwind, [including Non-Core run off] ■ [NIM range of 3.25-3.40%] ■ Positive operating leverage ■ Significant share repurchases ■ Credit normalization [35-40 bps] See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. ■ Business matures ■ Consistent meaningful revenue growth ■ Positive operating leverage ■ Attractive credit profile ■ [Accretive ROTCE, in excess of 20%]
27 4Q24 2025 2026 2027 Meaningful NIM improvement over the medium term Medium-term NIM target 3.25 to 3.50% 2.87% 3.25% • Terminated swaps +25 bps • Non-Core run off +13 bps ■ Expect progression toward 3.25 to 3.40% NIM range over the next 3 years consistent with a Fed funds range of 3.00 to 3.75% 1. Majority of NIM improvement from 3Q24 to 4Q27 is time based and not rate dependent 2. The run off of legacy active swaps in a negative carry position will also benefit medium-term NIM 3. Additional positive impact will result from active balance sheet management and fixed-asset repricing 4. These benefits will be partly offset by the asset sensitive balance sheet as rates are forecast to decline over the period Rates at or above 4% favor top end of range or above3.50% +38 bps time-based NIM benefit 4Q24 to 4Q27 4Q25 4Q26 4Q27 Terminated swaps +7 bps +21 bps +25 bps Non-Core +10 bps +12 bps +13 bps Cumulative time-based NIM benefit +17 bps +32 bps +38 bps Maturing of legacy active swaps +15 to 20 bps Fixed-rate asset repricing benefit +15 to 20 bps Asset sensitivity/ other impacts -15 to -30 bps Projected NIM range in 2027 ~3.25 - 3.50% Factors supporting 3.25 - 3.50% NIM • Swaps and Non-Core run off • Steadily improving balance sheet mix • Fed funds terminal range of 3.0 - 4.0% • Cumulative IBD beta of low/mid 50's % Rates at or below 3% favor bottom of range or below Net benefit 0 to +25 bps
28 4Q24 ROTCE Terminated swaps & Non-Core Consumer Commercial Private Bank performance Credit improvement AOCI & other capital impacts MTO ~16-18% Active swaps Medium-term ROTCE outlook(1) Time- based benefit See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. 10.7% ~3-4% ~15-16%~1% ~(2)%~1%~2-3% ■ Significant ROTCE improvement over the medium term is driven by non rate-dependent terminated swaps amortization and Non-Core run off with capital and liquidity redeployed ■ Generating annual positive operating leverage, with portfolio of strategic initiatives including Private Bank contributing meaningful revenue growth ■ Expect loan growth inline with nominal GDP with growth from strategic initiatives offsetting Non-Core run-off and balance sheet optimization ■ Credit improvement to low-to-mid 30s bps NCOs given current elevated CRE costs ■ AOCI impacts reduce with time, partially offset by significant share repurchases Fixed-rate repricing/BSO Underlying asset sensitivity + + - NIM expands to ~3.25-3.50% ROTCE ~16-18%
29 Citizens is an attractive investment opportunity Citizens continues to have a series of unique initiatives that will lead to relative medium-term outperformance – Transformed Consumer Bank with further deposit growth and Wealth revenue potential; well positioned in NYC Metro to gain market share; performance tracking well – Best-positioned Commercial Bank ready to serve private capital and high-growth sectors of the U.S. economy – Building premier Wealth/Private Bank franchise - made strong progress in 2024, reaching profitability in 4Q24 and will continue progress to ~5%+ earnings accretion in 2025; added leading wealth teams in San Francisco, Boston and South Florida, accelerating AUM growth Citizens has robust capital, liquidity and funding position Citizens has performed well since the IPO given its sound strategy, capable and experienced leadership and a strong customer-focused culture – Track record of strong execution – Commitment to operating and financial discipline; TOP 9 completed, launching TOP 10 with a target pre-tax run rate benefit of ~$100 million by YE2025 – Excellence in our capabilities, highly competitive with mega-banks and peers Citizens is well positioned to deliver ~16 to 18% ROTCE over the medium term given strategic initiatives and 2025 to 2027 NII tailwinds – Committed to maintaining our strong capital and liquidity position, while further strengthening funding and performance with balance sheet optimization, including Non-Core strategy – Focused on deploying capital to best relationship/highest risk-adjusted return areas – Flexibility to support customers and invest while continuing to return capital to shareholders; repurchased $1.05 billion of common stock in 2024 at a weighted-average price of $37.35, including $225 million in 4Q24 – Significant NII tailwind from Non-Core and swaps over the medium term; target NIM range ~3.25 to 3.50% – Private Bank results go from start-up to delivering a ~20 to 24% return on equity in the medium term – Current significant drag from Non-Core dissipates with time
Appendix ■ Financial Performance ■ Balance Sheet Optimization ■ Interest Rate Risk Management ■ Credit
31 Net income available to common shareholders and EPS $s in millions, except per share data é4% $655 $684 3Q24 4Q24 Linked-quarter Underlying results(1) Return on average total tangible assets Return on average tangible common equity Average loans $s in billions Average deposits $s in billions ê1% $3.5 2 $3.5 6 é8% $142.0 $140.9 3Q24 4Q24 $174.1 $174.3 3Q24 4Q24 0.88% 0.90% 0.74% 0.78% 3Q24 4Q24 11.1% 11.8% 9.7% 10.7% 3Q24 4Q24 $354 $378 $0.79 $0.85 3Q24 4Q24 é7% Pre-provision profit $s in millions See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. é95 bps é4 bpsstable
32 $721 $684 4Q23 4Q24 Year-over-year Underlying results(1) Return on average total tangible assets ê5% Average loans $s in billions ê5% Net income available to common shareholders and EPS $s in millions, except per share data Return on average tangible common equity Average deposits $s in billions $3.5 2 stable $3.5 6 $148.0 $140.9 4Q23 4Q24 $177.1 $174.3 4Q23 4Q24 1.02% 0.90% 0.78% 0.78% 4Q23 4Q24 14.8% 11.8% 11.8% 10.7% 4Q23 4Q24 ê2% Pre-provision profit $s in millions ê118 bps$396 $378 $0.85 $0.85 4Q23 4Q24 See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. stable ê5%
33 $3,223 $2,716 FY2023 FY2024 Full year Underlying results(1) Return on average total tangible assets ê16% Average loans $s in billions Net income available to common shareholders and EPS $s in millions, except per share data Return on average tangible common equity Average deposits $s in billions $3.5 2 ê16 bps $3.5 6 $152.2 $142.7 FY2023 FY2024 $175.3 $174.5 FY2023 FY2024 1.13% 0.91% 0.92% 0.76% FY2023 FY2024 stable Pre-provision profit $s in millions ê302 bps$1,848 $1,470 $3.88 $3.24 FY2023 FY2024 ê20% ê16% 15.7% 12.1% 13.5% 10.5% FY2023 FY2024 ê6% FY2023 FY2024(fcst) % change Real Link to be pasted again after books close Average loans $ 152.2 $ 142.7 (6) % (6) % Average deposits $ 175.3 $ 174.5 — % — % EPS $ 3.9 $ 3.2 (18) % (16) % See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
34 FY2024 Scorecard(1) FY24 Underlying outlook(1) FY24 Underlying results Net interest income Down 6-9% Noninterest income Up 6-9%, market dependent Noninterest expense Up ~1-1.5% Net charge-offs [$750MM]; 50 bps $748MM; 52 bps CET1 ratio(2) ~10.5% Tax rate ~21-22% ~ 2024 Underlying outlook 2024 Underlying results Net interest income Down 6-9%; net swaps impact of ~4-5% Down 9.7%; net swaps impact of ~5% NIM FY2024 average 2.80-2.85%; 4Q24 exit NIM ~2.85% FY2024 average 2.85%; 4Q24 2.87% Loans Average loans down 2-3% reflecting Non-Core run off and the 2023 decline Spot loans up 3-5% driven by Private Bank and 2H24 Commercial activity Average loans down 6.2% Spot loans down 4.6% Earning assets Average earning assets up slightly reflecting 2023 liquidity build Average earning assets down 1.8% Noninterest income Up 6-9%, market dependent Up 9.0% Noninterest expense Up ~1-1.5% Up 1.5% Net charge-off ratio ~$745MM; ~50 bps; ACL likely to see releases over course of year $746MM; 52 bps CET1 ratio(2) ~10.5%; share repurchases dependent on market conditions and loan growth 10.8%; repurchased $1.05 billion of common stock Tax rate ~21-22% 21% See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
35 $10.2 $11.9 $12.5 $13.4 $12.3 $3.8 $2.0 $0.6 $0.6 $0.1 $5.2 $6.4 $6.5 $7.8 $7.2 Senior debt Subordinated debt Auto Collateralized borrowings Other FHLB 4Q23 1Q24 2Q24 3Q24 4Q24 6.5% 6.1% 5.8% 5.1% 4.3% 3.5% 3.5% 3.1% 2.5% 2.4% 0.7% 0.7% FHLB advances Repurchase agreements sold Fed funds purchased Trading liabilities Commercial paper Peer 1 Peer 2 Peer 3 Peer 4 Peer Avg Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 CFG (3Q24) CFG (4Q24) $50.2 $52.0 $52.8 $53.0 $52.0 $10.2 $10.9 $11.1 $10.6 $9.8 $40.0 $41.1 $41.7 $42.4 $42.2 26% 27% 27% 27% 27% Interest-bearing deposits in banks Investments As % of interest-earning assets 4Q23 1Q24 2Q24 3Q24 4Q24 133% 127% 122% 119% 117% 116% 115% 114% 107% GSIB #1 GSIB #2 CFG (3Q24) CFG (4Q24) GSIB #3 GSIB #4 GSIB #5 GSIB #6 GSIB #7 Strong liquidity and improving funding profile Increasing structural long-term debt while reducing shorter-term borrowings $s in billions Maintaining a high level of liquidity $s in billions; period-end Low reliance on shorter-term market- based funding relative to peers(2) As % of tangible assets 100%* *Minimum LCR requirement under Category I Bank rules See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. (3) Liquidity Coverage Ratios - CFG vs GSIBs(1)
36 $6.9 $6.2 $5.5 $5.0 $4.5 $2.9 $1.8 $3.4 $2.9 $2.4 $1.9 $1.5 $0.3 $— $4.7 $4.1 $3.5 $3.1 $2.7 $1.4 0.6 $2.2 $2.1 $2.0 $1.9 $1.8 $1.5 1.2 4Q24 1Q25 2Q25 3Q25 4Q25 4Q26 4Q27 ■ Non-Core retail loan portfolio of $6.9 billion at 12/31/24 – $0.9 billion QoQ decline in 4Q24 – ~4.4% WA loan yield (~98% fixed rate); ~5.5% WA funding cost ■ Retail products targeted for growth include areas with greatest relationship potential – Home equity, card, mortgage Education and other retail (purchased) $7.9 $6.9 $4.7 $5.5 $4.7 $2.9 $2.4 $2.2 $1.8 3Q24 4Q24 4Q25 BSO actions to further strengthen capital & liquidity, improve returns Non-Core portfolio Dedicated structural funding Non-Core portfolio Indirect auto Auto collateralized borrowings $s in billions Commercial BSO ■ Originations are highly selective, with a focus on multi-product relationships that deliver a higher risk-adjusted return profile ■ Continue to exit low-returning commercial credit-only client relationships ■ Will strategically reduce the commercial real estate portfolio over the next 3 to 5 years $3.8 $3.4 $1.5 Education and Other Retail (purchased) Quarterly 2025 TBU
37 Protecting NII and reducing earnings volatility through economic cycles 28.6 22.4 8.6 8.6 2025 2026 2027 2028 W.A. receive-fixed rate 3.1% 3.1% 3.1% 3.2% 3.3% 3.4% 3.5% 3.5% 3.6% 3.2% 3.2% 3.5% 3.6% 3.6% 3.6% Executed post 6/30/23 - - - 4.0% 4.0% 3.9% 3.8% 3.8% 3.7% - 4.0% 3.8% 3.7% 3.6% 3.6% Executed pre 6/30/23 3.1% 3.1% 3.1% 3.1% 3.1% 3.2% 3.2% 3.2% 3.3% 3.2% 3.1% 3.2% 3.4% - - NII impact from terminated swaps ($MM) $(136) $(127) $(119) $(108) $(103) $(88) $(62) $(52) $(28) $(493) $(457) $(230) $(40) $(3) $0 Receive-fixed cash flow swaps (average notional in $ billions) ■ Receive-fixed cash flow swaps represent the primary tool to manage overall asset sensitivity – During 4Q24, executed ~$11.5 billion in forward starting swaps with start dates ranging from 1Q26 to 3Q27 and a W.A. receive rate of ~3.5% – Will opportunistically add swaps to further increase protection to lower rate scenarios in 2027 and beyond ■ Slightly asset sensitive to a gradual change in rates at 4Q24 – Approximately +/- 1% impact to NII over the next 12 months with a gradual +/- 100 bps change in rates relative to the forward curve ■ Given the Fed pivot to stop raising rates in 3Q23, we have bifurcated the active swap book into pre 6/30/2023 (legacy) and post 6/30/2023 (current). Substantially all of the terminated swaps were pre 6/30/2023 Receive-fixed swaps executed post 06/30/23 Receive-fixed swaps executed pre 6/30/23 (legacy) $26.2 $26.3 $26.3 $29.8 $31.8 $29.8 $26.0 $25.0 $26.6 $3.7 $7.3 $8.3 $11.0 $12.8 $17.6 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 $24.2 $28.6 $26.8 $19.3 $10.8 $2.7 $2.8 $12.4 $16.5 $10.6 2024 2025 2026 2027 2028 2029
38 AOCI accretion Protecting CET1 - AFS marks; duration decreasing with securities portfolio hedging; less sensitivity to rates. Illustrate how sensitivity to a 50 bp move has fallen from 12/31/22 to 9/30/23 to 12/31/23 ...As recent actions limit AOCI volatility to protect capital $(2.4) $(2.0) $(1.7) $(0.3) $(0.3) $(0.3) $(0.9) $(0.4) $(0.1) Swaps Pension Securities 12/31/2024 12/31/2025 12/31/2026 $(3.6) $(2.7) $(2.1) ~42% TCE CET1(2) $(2.7) $(2.3) $(2.0) Commentary ■ Expect benefit to capital via accretion to AOCI as unrealized losses "burn off" – ~$0.7 billion in unrealized losses related to securities and pension expected to "burn off" by YE2026, adding ~40 bps to the CET1 ratio adjusted for AOCI opt-out removal(4) ■ Portfolio management actions focused on reducing duration of securities to protect capital by limiting volatility in AOCI – Immediate 50 bp parallel increase in rates would negatively impact CET1 ratio adjusted for AOCI opt-out removal by ~21 bps; a 50 bp parallel decrease would positively impact by ~20 bps Burn-off by YE2026~26% (1) Select totals may not sum due to rounding (2) CET1 adjusted for AOCI opt-out removal accretion based on forward curve with Fed funds reaching a terminal rate of 3.50% (3) Unrealized losses in swap portfolio includes both active and terminated swaps (4) CET1 ratio impact for illustrative purposes assumes the RWA balance at 12/31/24 Projected accretion to TCE and CET1 adjusted for AOCI opt-out removal(1) Accretes to CET1(2) (3) $s in billions
39 $69.8B Commercial credit portfolio See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. Commercial portfolio risk ratings(4) $s in billions 57% 58% 59% 17% 16% 16% 19% 18% 18% 7% 8% 7% 4Q23 3Q24 4Q24 B- and lower B+ to B BB+ to BB- AAA+ to BBB- $69.8 Highlights $71.8($ in billions) Balances % of total CFG C&I Finance and Insurance Capital call facilities $ 6.1 4 % Other Finance and Insurance 6.4 5 Other Manufacturing 3.5 3 Technology 2.8 2 Accommodation and Food Services 2.6 2 Health, Pharma, Social Assistance 2.3 2 Professional, Scientific, and Technical Services 2.3 2 Wholesale Trade 2.0 1 Retail Trade 2.0 1 Other Services 2.1 1 Energy & Related 2.1 1 Rental and Leasing 0.9 1 Consumer Products Manufacturing 0.7 1 Administrative and Waste Management Services 1.4 1 Arts, Entertainment, and Recreation 1.5 1 Automotive 1.0 1 Other (1) 2.9 2 Total C&I(2) $ 42.6 31 % CRE Multi-family $ 9.8 7 % Office 5.1 4 Credit tenant lease and life sciences(3) 2.1 2 Other general office 2.9 2 Industrial 3.6 3 Retail 2.9 2 Co-op 1.8 1 Data Center 1.0 1 Hospitality 0.4 — Other (1) 2.6 2 Total CRE $ 27.2 20 % Total Commercial loans & leases $ 69.8 50 % Total CFG $ 139.2 Diverse and granular portfolio ■ Disciplined capital allocation and risk appetite – Highly experienced leadership team – Focused client selection ■ C&I portfolio has focused growth on larger, mid-corporate customers, thereby improving overall asset quality ■ Leveraged loans ~1.7% of total CFG loans, granular hold positions with an average outstanding of ~$12 million ■ CRE portfolio is well diversified across asset type, geography, and borrowers with the emphasis on strong sponsor selection $74.4
40 Suburban Class C 3% CBD Class C 5% Suburban Class A 39% CBD Class A 15% Suburban Class B 27% CBD Class B 11% 50% 100% 100% 83% 45% 71% 41% 78% 100% 50% 17% 55% 29% 59% 100% 22% New York, NY Washington, DC Los Angeles, CA Dallas, TX Atlanta, GA Philadelphia, PA Boston, MA Chicago, IL Baltimore, MD Phoenix, AZ Suburban CBD NY 16.9% NJ 12.0% VA 8.5% CA 8.2% TX 7.4%MD 6.7% PA 5.1% MA 4.3% GA 4.2% OH 4.0% IL 3.7% AZ 3.0% MN 2.6% CO 2.5% WA 2.2% Other 8.7% Commercial Real Estate - $5.1B Office portfolio: well diversified(1) $2.9B General Office by state Other NC CT VT MO FL DC MI UT SC RI NH DE 22% 20% 58% General Office $2.9B Credit Tenant $1.1B Life Sciences $1.0B Property type $2.9B General Office class & location Top 10 General Office MSA breakdown Outstanding *Manhattan is ~$159 million $ 805 322 193 137 123 122 120 109 97 89 $ in millions (As of 12/31/24) See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
41 43% 45% 46% 32% 31% 31% 16% 15% 14% 4% 4% 4% 5% 5% 5% 4Q23 3Q24 4Q24 47% 23% 7% 5% 11% 7% $69.4B Retail credit portfolio 800+ 740-799 680-739 640-679 <640 $69.4 $s in billions $69.8 Home equity Retail loans(1) Residential mortgage Auto Education - in school Education - refinance Other retail ~95% of retail portfolio > 680 Super-prime/prime* ~77% of retail portfolio Secured ■ Mortgage – FICO ~790 – Weighted-average LTV of ~51% ■ Home equity – FICO ~760 – ~32% secured by 1st lien – ~99% CLTV less than 80% – ~87% CLTV less than 70% ■ Auto – FICO ~740 ■ Education – FICO ~790 ■ Other retail: – Credit card – FICO ~735 – Citizens Pay – FICO ~730 High quality, diverse portfolio *Super-prime/prime defined as FICO of 680 or above at origination See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. Retail portfolio FICOs(2) $71.5
42 Allocation of allowance for credit losses by product type December 31, 2024 September 30, 2024 $s in millions Loans and Leases Allowance Coverage Loans and Leases Allowance Coverage Commercial and industrial(1)(2) $ 42,551 $592 1.39 % $ 43,825 $621 1.42 % Commercial real estate 27,225 703 2.58 27,983 730 2.61 Total commercial 69,776 1,295 1.86 71,808 1,351 1.88 Residential mortgages 32,726 194 0.59 32,379 164 0.51 Home equity 16,495 149 0.90 15,992 138 0.86 Automobile 4,744 24 0.51 5,540 29 0.52 Education 10,812 298 2.75 11,118 295 2.66 Other retail 4,650 299 6.44 4,795 309 6.44 Total retail loans 69,427 964 1.39 69,824 935 1.34 Allowance for credit losses(3) $139,203 $2,259 1.62 % $141,632 $2,286 1.61 % See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44.
43 Delinquency by product type See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described on page 44. December 31, 2024 (%) September 30, 2024 (%) Days Past Due and Accruing Days Past Due and Accruing Current 30-59 60-89 90+ Nonaccrual Current 30-59 60-89 90+ Nonaccrual Commercial and industrial(1) 99.28 % 0.08 % 0.05 % 0.02 % 0.57 % 99.36 % 0.12 % 0.01 % 0.01 % 0.50 % Commercial real estate 96.28 0.75 0.10 0.02 2.85 96.35 0.26 0.30 0.05 3.04 Total commercial 98.11 0.34 0.07 0.02 1.46 98.18 0.18 0.12 0.03 1.49 Residential mortgages(2) 97.81 0.77 0.28 0.55 0.59 98.59 0.29 0.15 0.45 0.52 Home equity 97.59 0.53 0.16 — 1.72 97.49 0.58 0.17 — 1.76 Automobile 96.18 2.11 0.70 — 1.01 96.51 1.97 0.69 — 0.83 Education 98.83 0.42 0.21 0.02 0.52 98.84 0.39 0.22 0.02 0.53 Other retail 96.86 0.99 0.67 0.02 1.46 97.14 0.92 0.65 0.02 1.27 Total retail 97.75 0.76 0.30 0.26 0.93 98.12 0.55 0.24 0.21 0.88 Total 97.93 % 0.55 % 0.18 % 0.14 % 1.20 % 98.15 % 0.36 % 0.18 % 0.12 % 1.19 %
44 Notable items(1) Quarterly results reflect notable items primarily related to integration costs associated with recent acquisitions, as well as TOP revenue and efficiency initiatives and other items. In addition, fourth quarter 2024 and fourth quarter 2023 include a notable item for an industry-wide FDIC special assessment. These notable items have been excluded from reported results to better reflect Underlying operating results. See pages 45-47 for notes and important information on Non-GAAP Financial Measures, including “Underlying” results. “Underlying” results exclude the impact of notable items described above. Notable items - Integration-related 4Q24 3Q24 4Q23 FY 2024 FY 2023 $s in millions, except per share data Pre-tax After- tax Pre-tax After- tax Pre-tax After- tax Pre-tax After- tax Pre-tax After- tax Salaries & benefits $ (2) $ (1) $ (2) $ (2) $ (2) $ (1) $ (9) $ (6) $ (15) $ (11) Equipment and software — — — — — — — — (4) (3) Outside services — — — — (3) (2) (1) (1) (43) (31) Occupancy — — — — — — — — (41) (30) Other expense — — — — — — — — (1) (1) Noninterest expense $ (2) $ (1) $ (2) $ (2) $ (5) $ (3) $ (10) $ (7) $ (104) $ (76) EPS Impact - Noninterest expense $ — $ — $ (0.01) $ (0.02) $ (0.16) Total Integration Costs $ (2) $ (1) $ (2) $ (2) $ (5) $ (3) $ (10) $ (7) $ (104) $ (76) EPS Impact - Total Integration-related $ — $ — $ (0.01) $ (0.02) $ (0.16) Other notable items - TOP & Other 4Q24 3Q24 4Q23 FY 2024 FY 2023 $s in millions, except per share data Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Tax notable items $ — $ — $ — $ — $ — $ 17 $ — $ 7 $ — $ 17 Noninterest income $ 10 $ 8 $ (2) $ (1) $ — $ — $ 15 $ 11 $ — $ — Salaries & benefits $ (15) $ (12) $ (2) $ (2) $ (30) $ (22) $ (37) $ (27) $ (52) $ (38) Equipment and software (3) (2) (2) (2) (37) (27) (17) (13) (47) (35) Outside services (4) (3) (2) (2) (10) (7) (27) (21) (25) (19) Occupancy (5) (4) (1) — (20) (15) (19) (14) (29) (22) FDIC Assessment(1) 9 6 — — (225) (167) (31) (24) (225) (167) Other expense (4) (3) (2) (1) (18) (13) (15) (10) (24) (17) Noninterest expense $ (22) $ (18) $ (9) $ (7) $ (340) $ (251) $ (146) $ (109) $ (402) $ (298) Total Other Notable Items $ (12) $ (10) $ (11) $ (8) $ (340) $ (234) $ (131) $ (91) $ (402) $ (281) EPS Impact - Other Notable Items $ (0.02) $ (0.02) $ (0.50) $ (0.19) $ (0.59) Total Notable Items $ (14) $ (11) $ (13) $ (10) $ (345) $ (237) $ (141) $ (98) $ (506) $ (357) Total EPS Impact $ (0.02) $ (0.02) $ (0.51) $ (0.21) $ (0.75) (1) The FDIC special assessment earnings per share impact is $0.01, $(0.35), $(0.05), and $(0.35) for fourth quarter 2024, fourth quarter 2023, full year 2024, and full year 2023 respectively.
45 Notes on Non-GAAP Financial Measures See important information on our use of Non-GAAP Financial Measures at the beginning this presentation and reconciliations to GAAP financial measures at the end of this presentation. Non-GAAP measures are herein defined as Underlying results. Where there is a reference to Underlying results in a paragraph or table, all measures that follow these references are on the same basis, when applicable. Allowance coverage ratios for loans and leases includes the allowance for funded loans and leases in the numerator and funded loans and leases in the denominator. Allowance coverage ratios for credit losses includes the allowance for funded loans and leases and allowance for unfunded lending commitments in the numerator and funded loans and leases in the denominator. General Notes a. References to net interest margin are on a fully taxable equivalent ("FTE") basis. b. Throughout this presentation, references to consolidated and/or commercial loans and loan growth include leases. Loans held for sale are also referred to as LHFS. c. Select totals may not sum due to rounding. d. Based on Basel III standardized approach. Capital Ratios are preliminary. e. Throughout this presentation, reference to balance sheet items are on an average basis and loans exclude held for sale unless otherwise noted. Notes Notes on slide 3 - 4Q24 GAAP Summary 1) See general note a). Notes on slide 4 - 4Q24 and FY24 Underlying financial summary 1) See note on non-GAAP financial measures. Notes on slide 5 - 4Q24 Underlying financial performance detail 1) See note on non-GAAP financial measures. 2) Legacy Core consists of Commercial, Consumer excluding Private Bank and Non-Core, and Other. 3) At December 31, 2024, the Non-Core segment was fully funded with marginal high-cost funding comprised of FHLB, collateralized auto debt, and brokered certificates of deposit. 4) See general note a). 5) See general note d). Notes on slide 6 - 2024 Underlying financial performance detail 1) See note on non-GAAP financial measures. 2) Legacy Core consists of Commercial, Consumer excluding Private Bank and Non-Core, and Other. 3) At December 31, 2024, the Non-Core segment was fully funded with marginal high-cost funding comprised of FHLB, collateralized auto debt, and brokered certificates of deposit. 4) See general note a). 5) See general note d). Notes on slide 7 - 4Q24 Overview and FY2024 Overview 1) See note on non-GAAP financial measures. 2) See general note d). Notes on slide 9 - Noninterest income 1) See note on non-GAAP financial measures. 2) Effective for 2Q24, Trust and investment services fees was renamed to Wealth fees to better reflect the broad range of wealth-related management fees and services provided to our customers. 3) Includes bank-owned life insurance income and other miscellaneous income for all periods presented. 4) See above note on non-GAAP financial measures. See Notable Items slide 44 for more detail. Notes on slide 10 - Noninterest expense 1) See above note on non-GAAP financial measures. See Notable Items slide 44 for more detail. Notes on slide 13 - Highly diversified and retail-oriented deposit base 1) Estimated based on available company disclosures. 2) Includes collateralized state and municipal balances and excludes bank and nonbank subsidiaries. 3) Includes branch-based checking with interest and savings. Notes on slide 15 - Allowance for credit losses 1) Allowance for credit losses to nonaccrual loans and leases. 2) Effective for the first quarter of 2024, the Company's lease portfolio is included in Commercial and industrial. Prior period results have been revised to conform to the new presentation. Notes on slide 16 - Strong capital position 1) See general note d). 2) For regulatory capital purposes, we have elected to delay the estimated impact of CECL on regulatory capital for a two-year period ended December 31,2021, followed by a three-year transition period ending December 31, 2024. As of December 31, 2021, the modified CECL transition amount was $384 million and is being transitioned out of regulatory capital over a three-year period. 3) See general note c).
46 Notes continued Notes on slide 18 - Transformed Consumer Bank 1) Mass affluent and above are retail households with the higher value of IXI or current month deposit/investment balances greater than or equal to $100K. 2) Estimated based on available company disclosures. 3) Includes collateralized state and municipal balances and excludes bank and nonbank subsidiaries. 4) Peer data as of September 30, 2024. Peers include CMA, FITB, HBAN, KEY, MTB, PNC, RF, TFC and USB. Notes on slide 19 - Best-positioned Commercial Bank 1) Includes syndicated loans; source: Pitchbook. 2) Normative data: Barlow Research’s Middle Market National Business Banking Study rolling 4-quarter data (3Q2023-2Q2024) Large bank lead clients (assets >$50B) with $25MM-<$500MM in annual sales revenue. Notes on slide 21 - Building a leading NYC Metro/NJ franchise 1) Full year retail household growth is calculated on an average basis. Notes on slide 22 - FY2025 Outlook vs. 2024 1) See note on non-GAAP financial measures. 2) See general note d). Notes on slide 23 - FY2025 Underlying expense outlook 1) See note on non-GAAP financial measures. Notes on slide 25 - 1Q25 outlook vs. 4Q24 1) See note on non-GAAP financial measures. 2) See general note d). Notes on slide 26 - Medium-term financial targets 1) See note on non-GAAP financial measures. Notes on slide 28 - Medium-term ROTCE outlook 1) See note on non-GAAP financial measures. Notes on slide 31 - Linked-quarter Underlying results 1) See note on non-GAAP financial measures. Notes on slide 32 - Year-over-year Underlying results 1) See note on non-GAAP financial measures. Notes on slide 33 - Full year Underlying results 1) See note on non-GAAP financial measures. Notes on slide 34 - FY2024 Scorecard 1) See note on non-GAAP financial measures. 2) See general note d). Notes on slide 35 - Strong liquidity and improving funding profile 1) GSIB data as of September 30, 2024. GSIBs include GS, WFC, C, BK, BAC, JPM, and STT. 2) Peer data as of September 30, 2024. Peers include CMA, FITB, HBAN, KEY, MTB, PNC, RF, TFC and USB. 3) Includes all FHLB advances. Notes on slide 39 - $69.8B Commercial credit portfolio 1) Includes deferred fees and costs. 2) Effective for the first quarter of 2024, the Company's lease portfolio is included in Commercial and industrial. Prior period results have been revised to conform to the new presentation. 3) Credit tenant lease includes loans to nationally recognized tenants with high credit ratings and life sciences includes loans to provide lab and office space for tenants involved in the study and development of scientific discoveries. 4) Reflects period end balances. Notes on slide 40 - Commercial Real Estate - $5.1B Office portfolio: well diversified 1) See general note c).
47 Notes continued Notes on slide 41 - $69.4B Retail credit portfolio 1) See general note c). 2) Reflects period end balances. Notes on slide 42 - Allocation of allowance for credit losses by product type 1) Coverage ratio includes total commercial allowance for unfunded lending commitments and total commercial allowance for loan and lease losses in the numerator and total commercial loans and leases in the denominator. 2) Effective for the first quarter of 2024, the Company's lease portfolio is included in Commercial and industrial. Prior period results have been revised to conform to the new presentation. 3) Coverage ratio reflects total allowance for credit losses for the respective portfolio. Notes on slide 43 - Delinquency by product type 1) Effective for the first quarter of 2024, the Company's lease portfolio is included in Commercial and industrial. Prior period results have been revised to conform to the new presentation. 2) 90+ days past due and accruing includes $172 million,$145 million, and $243 million of loans fully or partially guaranteed by the FHA, VA, and USDA for December 31, 2024, June 30, 2024, and December 30, 2023, respectively. Notes on slide 44 - Notable items 1) See note on non-GAAP financial measures. Notes on slide 57 - Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core 1) Consumer Banking excludes Private Bank. 2) Legacy Core consists of Commercial, Consumer excluding Private Bank and Non-Core, and Other. 3) At December 31, 2024, the Non-Core segment was fully funded with marginal high-cost funding comprised of FHLB, collateralized auto debt, and brokered certificates of deposit. 4) See general note a). 5) See general note d). Notes on slide 58 - Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core 1) Consumer Banking excludes Private Bank. 2) Legacy Core consists of Commercial, Consumer excluding Private Bank and Non-Core, and Other. 3) At December 31, 2024, the Non-Core segment was fully funded with marginal high-cost funding comprised of FHLB, collateralized auto debt, and brokered certificates of deposit. 4) See general note a). 5) See general note d).
48 Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data QUARTERLY TRENDS FULL YEAR 4Q24 Change 2024 Change 4Q24 3Q24 4Q23 3Q24 4Q23 2024 2023 2023 $ % $ % $ % Noninterest income, Underlying: Noninterest income (GAAP) A $574 $532 $500 $42 8% $74 15% $2,176 $1,983 $193 10% Less: Notable items 10 (2) — 12 NM 10 100 15 — 15 100 Noninterest income, Underlying (non-GAAP) B $564 $534 $500 $30 6% $64 13% $2,161 $1,983 $178 9% Total revenue, Underlying: Total revenue (GAAP) C $1,986 $1,901 $1,988 $85 4% ($2) —% $7,809 $8,224 ($415) (5%) Less: Notable items 10 (2) — 12 NM 10 100 15 — 15 100 Total revenue, Underlying (non-GAAP) D $1,976 $1,903 $1,988 $73 4% ($12) (1%) $7,794 $8,224 ($430) (5%) Noninterest expense, Underlying: Noninterest expense (GAAP) E $1,316 $1,259 $1,612 $57 5% ($296) (18%) $5,234 $5,507 ($273) (5%) Less: Notable items 24 11 345 13 118 (321) (93) 156 506 (350) (69) Noninterest expense, Underlying (non-GAAP) F $1,292 $1,248 $1,267 $44 4% $25 2% $5,078 $5,001 $77 2% Pre-provision profit: Total revenue (GAAP) C $1,986 $1,901 $1,988 $85 4% ($2) —% $7,809 $8,224 ($415) (5%) Less: Noninterest expense (GAAP) E 1,316 1,259 1,612 57 5 (296) (18) 5,234 5,507 (273) (5) Pre-provision profit (non-GAAP) $670 $642 $376 $28 4% $294 78% $2,575 $2,717 ($142) (5%) Pre-provision profit, Underlying: Total revenue, Underlying (non-GAAP) D $1,976 $1,903 $1,988 $73 4% ($12) (1%) $7,794 $8,224 ($430) (5%) Less: Noninterest expense, Underlying (non-GAAP) F 1,292 1,248 1,267 44 4 25 2 5,078 5,001 77 2 Pre-provision profit, Underlying (non-GAAP) $684 $655 $721 $29 4% ($37) (5%) $2,716 $3,223 ($507) (16%) Income before income tax expense, Underlying: Income before income tax expense (GAAP) G $508 $470 $205 $38 8% $303 148% $1,888 $2,030 ($142) (7%) Less: Income (expense) before income tax expense (benefit) related to notable items (14) (13) (345) (1) (8) 331 96 (141) (506) 365 72 GAAP) H $522 $483 $550 $39 8% ($28) (5%) $2,029 $2,536 ($507) (20%) Income tax expense, Underlying: Income tax expense (GAAP) I $107 $88 $16 $19 22% $91 NM $379 $422 ($43) (10%) items (3) (3) (108) — — 105 97 (43) (149) 106 71 Income tax expense, Underlying (non-GAAP) J $110 $91 $124 $19 21% ($14) (11%) $422 $571 ($149) (26%) Net income, Underlying: Net income (GAAP) K $401 $382 $189 $19 5% $212 112% $1,509 $1,608 ($99) (6%) Add: Notable items, net of income tax benefit 11 10 237 1 10 (226) (95) 98 357 (259) (73) Net income, Underlying (non-GAAP) L $412 $392 $426 $20 5% ($14) (3%) $1,607 $1,965 ($358) (18%) et inco e available to common stockholders, Underlying: Net income available to common stockholders (GAAP) M $367 $344 $159 $23 7% $208 131% $1,372 $1,491 ($119) (8%) Add: Notable items, net of income tax benefit 11 10 237 1 10 (226) (95) 98 357 (259) (73) Underlying (non-GAAP) N $378 $354 $396 $24 7% ($18) (5%) $1,470 $1,848 ($378) (20%)
49 Non-GAAP financial measures and reconciliations QUARTERLY TRENDS FULL YEAR 4Q24 Change 2024 Change 4Q24 3Q24 4Q23 3Q24 4Q23 2024 2023 2023 $/bps % $/bps % $/bps % Operating leverage: Total revenue (GAAP) C $1,986 $1,901 $1,988 $85 4.56% ($2) 0.02% $7,809 $8,224 ($415) (5.04%) Less: Noninterest expense (GAAP) E 1,316 1,259 1,612 57 4.61 (296) (18.30) 5,234 5,507 (273) (4.95) Operating leverage (0.05%) 18.32% (0.09%) Operating leverage, Underlying: Total revenue, Underlying (non-GAAP) D $1,976 $1,903 $1,988 $73 3.89% ($12) (0.48%) $7,794 $8,224 ($430) (5.22%) Less: Noninterest expense, Underlying (non-GAAP) F 1,292 1,248 1,267 44 3.50 25 2.00 5,078 5,001 77 1.54 Operating leverage, Underlying (non-GAAP) 0.39% (2.48%) (6.76%) Efficiency ratio and efficiency ratio, Underlying: Efficiency ratio E/C 66.27 % 66.23% 81.13 % 4 bps (1,486) bps 67.03 % 66.97 % 6 bps Efficiency ratio, Underlying (non-GAAP) F/D 65.36 65.61 63.77 (25) bps 159 bps 65.15 60.81 434 bps Effective income tax rate and effective income tax rate, Underlying: Effective income tax rate I/G 21.04% 18.56% 7.59 % 248 bps 1,345 bps 20.06 % 20.76 % (70) bps Effective income tax rate, Underlying (non-GAAP) J/H 21.17 18.75 22.25 242 bps (108) bps 20.80 22.48 (168) bps Return on average tangible common equity and return on average tangible common equity, Underlying: Average common equity (GAAP) O $22,009 $22,380 $21,209 ($371) (2%) $800 4% $21,881 $21,592 $289 1% Less: Average goodwill (GAAP) 8,187 8,187 8,188 — — (1) — 8,187 8,184 3 — Less: Average other intangibles (GAAP) 136 140 163 (4) (3) (27) (17) 143 177 (34) (19) Add: Average deferred tax liabilities related to goodwill (GAAP) 436 435 421 1 — 15 4 433 422 11 3 Average tangible common equity P $14,122 $14,488 $13,279 ($366) (3%) $843 6% $13,984 $13,653 $331 2% Return on average tangible common equity M/P 10.36 % 9.45% 4.72 % 91 bps 564 bps 9.81 % 10.92 % (111) bps Return on average tangible common equity, Underlying (non-GAAP) N/P 10.66 9.71 11.84 95 bps (118) bps 10.51 13.53 (302) bps Return on average total assets and return on average total assets, Underlying: Average total assets (GAAP) Q $217,548 $218,578 $223,653 ($1,030) —% ($6,105) (3%) $219,024 $222,221 ($3,197) (1%) Return on average total assets K/Q 0.73 % 0.70% 0.33 % 3 bps 40 bps 0.69 % 0.72 % (3) bps Return on average total assets, Underlying (non-GAAP) L/Q 0.75 0.71 0.76 4 bps (1) bps 0.73 0.88 (15) bps $s in millions, except share, per share and ratio data
50 Non-GAAP financial measures and reconciliations QUARTERLY TRENDS FULL YEAR 4Q24 Change 2024 Change 4Q24 3Q24 4Q23 3Q24 4Q23 2024 2023 2023 $/bps % $/bps % $/bps % Return on average total tangible assets and return on average total tangible assets, Underlying: Average total assets (GAAP) Q $217,548 $218,578 $223,653 ($1,030) —% ($6,105) (3%) $219,024 $222,221 ($3,197) (1%) Less: Average goodwill (GAAP) 8,187 8,187 8,188 — — (1) — 8,187 8,184 3 — Less: Average other intangibles (GAAP) 136 140 163 (4) (3) (27) (17) 143 177 (34) (19) Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) 436 435 421 1 — 15 4 433 422 11 3 Average tangible assets R $209,661 $210,686 $215,723 ($1,025) —% ($6,062) (3%) $211,127 $214,282 ($3,155) (1%) Return on average total tangible assets K/R 0.76 % 0.72% 0.35 % 4 bps 41 bps 0.71 % 0.75 % (4) bps Return on average total tangible assets, Underlying (non-GAAP) L/R 0.78 0.74 0.78 4 bps — bps 0.76 0.92 (16) bps Tangible book value per common share: Common shares - at period-end (GAAP) S 440,543,381 445,216,549 466,418,055 (4,673,168) (1%) (25,874,674) (6%) 440,543,381 466,418,055 (25,874,674) (6%) Common stockholders' equity (GAAP) $22,141 $22,820 $22,329 ($679) (3) ($188) (1) $22,141 $22,329 ($188) (1) Less: Goodwill (GAAP) 8,187 8,187 8,188 — — (1) — 8,187 8,188 (1) — Less: Other intangible assets (GAAP) 146 137 157 9 7 (11) (7) 146 157 (11) (7) Add: Deferred tax liabilities related to goodwill and other intangible assets (GAAP) 438 435 433 3 1 5 1 438 433 5 1 Tangible common equity T $14,246 $14,931 $14,417 ($685) (5%) ($171) (1%) $14,246 $14,417 ($171) (1%) Tangible book value per common share T/S $32.34 $33.54 $30.91 ($1.20) (4%) $1.43 5% $32.34 $30.91 $1.43 5% Net income per average common share - basic and diluted and net income per average common share - basic and diluted, Underlying: Average common shares outstanding - basic (GAAP) U 440,802,738 446,561,996 466,234,324 (5,759,258) (1%) (25,431,586) (5%) 450,678,038 475,089,384 (24,411,346) (5%) Average common shares outstanding - diluted (GAAP) V 444,836,786 449,913,467 468,159,167 (5,076,681) (1) (23,322,381) (5) 453,510,245 476,693,148 (23,182,903) (5) Net income per average common share - basic (GAAP) M/U $0.83 $0.77 $0.34 $0.06 8 $0.49 144 $3.05 $3.14 ($0.09) (3) Net income per average common share - diluted (GAAP) M/V 0.83 0.77 0.34 0.06 8 0.49 144 3.03 3.13 (0.10) (3) Net income per average common share - basic, Underlying (non-GAAP) N/U 0.86 0.79 0.85 0.07 9 0.01 1 3.26 3.89 (0.63) (16) Net income per average common share - diluted, Underlying (non-GAAP) N/V 0.85 0.79 0.85 0.06 8 — — 3.24 3.88 (0.64) (16) Dividend payout ratio and dividend payout ratio, Underlying: Cash dividends declared and paid per common share W $0.42 $0.42 $0.42 $— —% $— —% $1.68 $1.68 $— — Dividend payout ratio W/ (M/U) 51 % 55 % 124 % (395) bps (7,293) bps 55 % 54 % 158 bps Dividend payout ratio, Underlying (non-GAAP) W/ (N/U) 49 53 49 (400) bps — bps 52 43 900 bps $s in millions, except share, per share and ratio data
51 Non-GAAP financial measures and reconciliations QUARTERLY TRENDS FULL YEAR 4Q24 Change 2024 Change 4Q24 3Q24 4Q23 3Q24 4Q23 2024 2023 2023 $/bps % $/bps % $/bps % Card fees, Underlying: Card fees (GAAP) $97 $93 $70 $4 4% $27 39% $368 $296 $72 24% Less: Notable items 11 6 — 5 83 11 100 24 — 24 100 Card fees, Underlying (non-GAAP) $86 $87 $70 ($1) (1%) $16 23% $344 $296 $48 16% Other income, Underlying Other income (GAAP) $28 $24 $20 $4 17% $8 40% $79 $78 $1 1% Less: Notable items (1) (8) — 7 88 (1) (100) (9) — (9) (100) Other income, Underlying (non-GAAP) $29 $32 $20 ($3) (9%) $9 45% $88 $78 $10 13% Salaries and employee benefits, Underlying: Salaries and employee benefits (GAAP) $674 $647 $667 $27 4% $7 1% $2,657 $2,599 $58 2% Less: Notable items 17 4 32 13 NM (15) (47) 46 67 (21) (31) Salaries and employee benefits, Underlying (non- GAAP) $657 $643 $635 $14 2% $22 3% $2,611 $2,532 $79 3% Equipment and software, Underlying: Equipment and software (GAAP) $193 $194 $215 ($1) (1%) ($22) (10%) $769 $756 $13 2% Less: Notable items 3 2 37 1 50 (34) (92) 17 51 (34) (67) Equipment and software, Underlying (non-GAAP) $190 $192 $178 ($2) (1%) $12 7% $752 $705 $47 7% Outside services, Underlying: Outside services (GAAP) $170 $146 $174 $24 16% ($4) (2%) $639 $687 ($48) (7%) Less: Notable items 4 2 13 2 100 (9) (69) 28 68 (40) (59) Outside services, Underlying (non-GAAP) $166 $144 $161 $22 15% $5 3% $611 $619 ($8) (1%) Occupancy, Underlying: Occupancy (GAAP) $112 $108 $125 $4 4% ($13) (10%) $447 $492 ($45) (9%) Less: Notable items 5 1 20 4 NM (15) (75) 19 70 (51) (73) Occupancy, Underlying (non-GAAP) $107 $107 $105 $— —% $2 2% $428 $422 $6 1% Other operating expense, Underlying: Other operating expense (GAAP) $167 $164 $431 $3 2% ($264) (61%) $722 $973 ($251) (26%) Less: Notable items (5) 2 243 (7) NM (248) (102) 46 250 (204) (82) Other operating expense, Underlying (non-GAAP) $172 $162 $188 $10 6% ($16) (9%) $676 $723 ($47) (7%) $s in millions, except share, per share and ratio data
52 Non-GAAP financial measures and reconciliations $s in millions, except share, per share and ratio data QUARTERLY TRENDS 2Q24 1Q24 Noninterest income, Underlying: Noninterest income (GAAP) A $553 $517 Less: Notable items 4 3 Noninterest income, Underlying (non-GAAP) B $549 $514 Total revenue, Underlying: Total revenue (GAAP) C $1,963 $1,959 Less: Notable items 4 3 Total revenue, Underlying (non-GAAP) D $1,959 $1,956 Noninterest expense, Underlying: Noninterest expense (GAAP) E $1,301 $1,358 Less: Notable items 36 85 Noninterest expense, Underlying (non-GAAP) F $1,265 $1,273 Efficiency ratio and efficiency ratio, Underlying: Efficiency ratio E/C 66.3 % 69.3% Efficiency ratio, Underlying (non-GAAP) F/D 64.6 65.1
53 Non-GAAP financial measures and reconciliations - CET1 adjusted for AOCI opt-out removal 4Q24 3Q24 CET1 Ratio adjusted for AOCI opt-out removal CET1 capital $ 17,900 $ 17,941 Less: AFS securities - AOCI 1,613 1,181 HTM securities - AOCI(1) 756 776 DTA for AFS/HTM securities 30 11 Pension 301 320 DTA for Pension 3 1 CET 1 capital adjusted for AOCI opt-out removal A $15,197 $15,652 Risk-weighted assets 165,699 168,552 Less: HTM securities - AOCI 132 136 AFS securities - AOCI 269 184 DTA for AFS/HTM securities (1,930) (1,630) Pension 301 320 DTA for Pension (268) (289) Risk-weighted assets adjusted for AOCI opt-out removal B $167,195 $169,831 CET1 Ratio adjusted for AOCI opt-out removal A/B 9.1 % 9.2 % $s in millions, except share, per share and ratio data (1) "HTM securities - AOCI" refers to unrealized losses recognized on securities before transfer to HTM
54 Non-GAAP financial measures and reconciliations QUARTERLY TRENDS 4Q24 Change 4Q24 3Q24 4Q23 3Q24 4Q23 $/bps % $/bps % Total Retail loans - at period-end $69,427 $69,824 $71,514 ($397) (1%) ($2,087) (3%) Less: Non-core retail loans - at period-end 6,942 7,869 11,106 (927) (12) (4,164) (37) Less: Private bank retail loans - at period-end 898 670 97 228 34 801 NM Total Retail loans excluding Private Bank and non-core - at period-end $61,587 $61,285 $60,311 $302 —% $1,276 2% Total Commercial loans - at period-end $69,776 $71,808 $74,445 ($2,032) (3%) ($4,669) (6%) Less: Private bank commercial loans - at period-end $2,228 $1,353 $155 $875 65 $2,073 NM Total Commercial loans excluding Private Bank - at period-end $67,548 $70,455 $74,290 ($2,907) (4%) ($6,742) (9%) $s in millions, except share, per share and ratio data
55 Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core $s in millions, except share, per share and ratio data QUARTERLY TRENDS FULL YEAR 4Q24 3Q24 4Q23 2024 2023 Net income available to common stockholders, Underlying: Net income available to common stockholders (GAAP) $367 $344 $159 $1,372 $1,491 Add: Notable items, net of income tax benefit 11 10 237 98 357 Net income available to common stockholders, Underlying (non-GAAP) A $378 $354 $396 $1,470 $1,848 Private Bank Net income available to common stockholders, (GAAP) 6 (2) (27) (24) (59) Less: Private Bank Notable Items — (1) (1) (2) (7) Private Bank Net income available to common stockholders, Underlying (non-GAAP) B $6 ($1) ($26) ($21) ($52) Non-Core Net income available to common stockholders, (GAAP) C ($45) ($51) ($72) ($206) ($244) Net income available to common stockholders excluding Private Bank & Non-Core, Underlying (non-GAAP) D=(A-B-C) $417 $406 $494 $1,697 $2,144 Return on average tangible common equity and return on average tangible common equity, Underlying: Average common equity (GAAP) $22,009 $22,380 $21,209 $21,881 $21,592 Less: Average goodwill (GAAP) 8,187 8,187 8,188 8,187 8,184 Less: Average other intangibles (GAAP) 136 140 163 143 177 Add: Average deferred tax liabilities related to goodwill (GAAP) 436 435 421 433 422 Average tangible common equity E $14,122 $14,488 $13,279 $13,984 $13,653 Return on average tangible common equity excluding Private Bank & Non-Core, Underlying (non-GAAP) D/E 11.8 % 11.1 % 14.8 % 12.1 % 15.7 %
56 Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core $s in millions, except share, per share and ratio data QUARTERLY TRENDS FULL YEAR 4Q24 3Q24 4Q23 2024 2023 Return on average total tangible assets and return on average total tangible assets, Underlying: Average total assets (GAAP) $217,548 $218,578 $223,653 $219,024 $222,221 Less: Average goodwill (GAAP) 8,187 8,187 8,188 8,187 8,184 Less: Average other intangibles (GAAP) 136 140 163 143 177 Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) 436 435 421 433 422 Average tangible assets $209,661 $210,686 $215,723 $211,127 $214,282 Less: Private Bank Average total assets (GAAP) 2,636 1,784 83 1,624 22 Less: Non-Core Average total assets (GAAP) 7,428 8,389 11,776 8,942 13,745 Average tangible assets excluding Private Bank & Non-Core, Underlying (non-GAAP) A $199,597 $200,513 $203,864 $200,561 $200,515 Net income, Underlying: Net income (GAAP) $401 $382 $189 $1,509 $1,608 Add: Notable items, net of income tax benefit 11 10 237 98 357 Net income, Underlying (non-GAAP) B $412 $392 $426 $1,607 $1,965 Private Bank Net income (GAAP) 6 (2) (27) (24) (59) Less: Private Bank Notables — (1) (1) (2) (7) Net income Private Bank, Underlying (non-GAAP) C $6 ($1) ($26) ($21) ($52) Non-Core Net income (GAAP) D (45) (51) (72) (206) (244) Net income excluding Private Bank & Non-Core, Underlying (non-GAAP) E=B-C-D $451 $444 $524 $1,834 $2,261 Return on average total tangible assets excluding Private Bank & Non-Core, Underlying (non-GAAP) E/A 0.90 % 0.88 % 1.02 % 0.91 % 1.13 %
57 Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core* 4Q24 (GAAP) 4Q24 Notables 4Q24 (Non-GAAP) $s in millions Commercial Banking Consumer Banking(1) Other Legacy Core(2) Private Bank Non-Core Legacy Private Bank Non-Core Legacy Core Private Bank Non-Core Total Net interest income $ 464 $ 1,139 $ (227) $ 1,376 $ 57.1 $ (21) $ — $ — $ — $ 1,376 $ 57.1 $ (21) $ 1,412 Noninterest income 232 300 31 563 10.9 — 10 — — 553 10.9 — 564 Total revenue 696 1,439 (196) 1,939 68.1 (21) 10 — — 1,929 68.1 (21) 1,976 Noninterest Expense 313 883 35 1,231 60.7 24 24 0.3 — 1,208 60.4 24 1,292 Pre-provision profit 383 556 (231) 708 7.4 (45) (14) (0.3) — 721 7.7 (45) 684 Provision for credit losses 91 82 (26) 147 — 15 — — — 147 — 15 162 Income before income tax expense 292 474 (205) 561 7.4 (60) (14) (0.3) — 574 7.7 (60) 522 Income tax expense 68 121 (69) 120 1.9 (15) (3) (0.1) — 123 2.0 (15) 110 Net income 224 353 (136) 441 5.5 (45) (11) (0.2) — 451 5.7 (45) 412 Preferred dividends — — 34 34 — — — — — 34 — — 34 Net income available to common stockholders $ 224 $ 353 $ (170) $ 407 $ 5.5 $ (45) $ (11) $ (0.2) $ — $ 417 $ 5.7 $ (45) $ 378 Contribution to total CFG Diluted EPS $ 0.50 $ 0.80 $ (0.38) $ 0.92 $ 0.01 $ (0.10) $ (0.02) $ — $ — $ 0.94 $ 0.01 $ (0.10) $ 0.85 $s in billions Interest-earning assets (spot) $ 62 $ 68 $ 52 $ 182 $ 3.1 $ 6.9 $— $— $— $182 $3.1 $6.9 $192 Loans (spot) 61 67 1 129 3.1 6.9 — — — 129 3.1 6.9 139 Deposits (spot) 44 119 5 168 7.0 — — — — 168 7.0 — 175 Risk-weighted assets (spot) $ 83 $ 55 $ 17 $ 155 $ 3.5 $ 7.0 $— $— $— $155 $3.5 $7.0 $166 Performance metrics: Net interest margin, FTE(4) 2.94 % (1.12) % 2.94 % (1.12) % 2.87 % Loans-to-deposit ratio (spot) 77.0 % 44.9 % 77.0 % 44.9 % 79.6 % CET1 capital ratio(5) 11.5 % 11.5 % 10.8 % ROTCE 11.5 % 11.8 % 10.7 % Efficiency ratio 63.5 % 62.6 % 65.4 % Noninterest income as a % of total revenue 29.0 % 16.1 % 28.7 % 16.1 % 28.5 % (3) *Select totals may not sum due to rounding
58 Non-GAAP financial measures and reconciliations excluding Private Bank & Non-Core* 4Q 2024 YTD (GAAP) 4Q 2024 YTD Notables 4Q 2024 YTD (Non-GAAP) $s in millions Commercial Banking Consumer Banking(1) Other Legacy Core(2) Private Bank Non-Core Legacy Private Bank Non-Core Legacy Core Private Bank Non-Core Total Net interest income $ 1,950 $ 4,424 $ (765) $ 5,609 $ 141.3 $ (117) $ — $ — $ — $ 5,609 $ 141.3 $ (117) $ 5,633 Noninterest income 908 1,106 137 2,151 24.7 — 15 — — 2,136 24.7 — 2,161 Total revenue 2,858 5,530 (628) 7,760 166.0 (117) 15 — — 7,745 166.1 (117) 7,794 Noninterest Expense 1,241 3,480 217 4,938 197.8 98 153 3 — 4,785 194.8 98 5,078 Pre-provision profit 1,617 2,050 (845) 2,822 (31.8) (215) (138) (3) — 2,960 (28.8) (215) 2,716 Provision for credit losses 353 331 (58) 626 — 61 — — — 626 — 61 687 Income before income tax expense 1,264 1,719 (787) 2,196 (31.8) (276) (138) (3) — 2,334 (28.8) (276) 2,029 Income tax expense 291 442 (276) 457 (8.2) (70) (42) (1) — 499 (7.4) (70) 422 Net income 973 1,277 (511) 1,739 (23.6) (206) (96) (2) — 1,834 (21.4) (206) 1,607 Preferred dividends — — 137 137 — — — — — 137 — — 137 Net income available to common stockholders $ 973 $ 1,277 $ (648) $ 1,602 $ (23.6) $ (206) $ (96) $ (2) $ — $ 1,697 $ (21.4) $ (206) $ 1,470 Contribution to total CFG Diluted EPS $ 2.15 $ 2.81 $ (1.43) $ 3.53 $ (0.05) $ (0.45) $ (0.21) $ — $ — $ 3.74 $ (0.05) $ (0.45) $ 3.24 $s in billions Interest-earning assets (spot) $ 62 $ 68 $ 52 $ 182 $ 3.1 $ 6.9 $— $— $— $182 $3.1 $6.9 $192 Loans (spot) 61 67 1 129 3.1 6.9 — — — 129 3.1 6.9 139 Deposits (spot) 44 119 5 168 7.0 — — — — 168 7.0 — 175 Risk-weighted assets (spot) $ 83 $ 55 $ 17 $ 155 $ 3.5 $ 7.0 $— $— $— $155 $3.5 $7.0 $166 Performance metrics: Net interest margin, FTE(4) 3.00 % (1.31) % 3.00 % (1.31) % 2.85 % Loans-to-deposit ratio (spot) 77.0 % 44.9 % 77.0 % 44.9 % 79.6 % CET1 capital ratio(5) 11.5 % 11.5 % 10.8 % ROTCE 11.5 % 12.1 % 10.5 % Efficiency ratio 63.6 % 61.8 % 65.2 % Noninterest income as a % of total revenue 27.7 % 14.9 % 27.6 % 14.9 % 27.7 % (3) *Select totals may not sum due to rounding
Document 1
Financial Supplement
Fourth Quarter and Full Year 2024
1
| Table of Contents | Page | |||||||
Credit-Related Information: | ||||||||
The information in this Financial Supplement is preliminary and based on company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying pages. The Company does not undertake an obligation to, and disclaims any duty to, update any of the information provided. Any forward-looking statements in this Financial Supplement are subject to the forward-looking statements language contained in the Company’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which can be found on the SEC’s website (www.sec.gov) or on the Company’s website (www.citizensbank.com). The Company’s future financial performance is subject to the risks and uncertainties described in its SEC filings. | ||||||||
2
CONSOLIDATED FINANCIAL HIGHLIGHTS
(dollars in millions, except per share data)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 Change | 2024 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $/bps | % | $/bps | % | $/bps | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SELECTED OPERATING DATA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue | $1,986 | $1,901 | $1,963 | $1,959 | $1,988 | $85 | 4 | % | ($2) | — | % | $7,809 | $8,224 | ($415) | (5 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expense | 1,316 | 1,259 | 1,301 | 1,358 | 1,612 | 57 | 5 | (296) | (18) | 5,234 | 5,507 | (273) | (5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Profit before provision (benefit) for credit losses | 670 | 642 | 662 | 601 | 376 | 28 | 4 | 294 | 78 | 2,575 | 2,717 | (142) | (5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for credit losses | 162 | 172 | 182 | 171 | 171 | (10) | (6) | (9) | (5) | 687 | 687 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NET INCOME | 401 | 382 | 392 | 334 | 189 | 19 | 5 | 212 | 112 | 1,509 | 1,608 | (99) | (6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income, Underlying1 | 412 | 392 | 408 | 395 | 426 | 20 | 5 | (14) | (3) | 1,607 | 1,965 | (358) | (18) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income available to common stockholders | 367 | 344 | 357 | 304 | 159 | 23 | 7 | 208 | 131 | 1,372 | 1,491 | (119) | (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income available to common stockholders, Underlying1 | 378 | 354 | 373 | 365 | 396 | 24 | 7 | (18) | (5) | 1,470 | 1,848 | (378) | (20) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PER COMMON SHARE DATA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic earnings | $0.83 | $0.77 | $0.79 | $0.66 | $0.34 | $0.06 | 8 | % | $0.49 | 144 | % | $3.05 | $3.14 | ($0.09) | (3 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted earnings | 0.83 | 0.77 | 0.78 | 0.65 | 0.34 | 0.06 | 8 | 0.49 | 144 | 3.03 | 3.13 | (0.10) | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic earnings, Underlying1 | 0.86 | 0.79 | 0.82 | 0.79 | 0.85 | 0.07 | 9 | 0.01 | 1 | 3.26 | 3.89 | (0.63) | (16) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings, Underlying1 | 0.85 | 0.79 | 0.82 | 0.79 | 0.85 | 0.06 | 8 | — | — | 3.24 | 3.88 | (0.64) | (16) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends declared and paid per common share | 0.42 | 0.42 | 0.42 | 0.42 | 0.42 | — | — | — | — | 1.68 | 1.68 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Book value per common share | 50.26 | 51.25 | 48.03 | 47.43 | 47.87 | (0.99) | (2) | 2.39 | 5 | 50.26 | 47.87 | 2.39 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tangible book value per common share | 32.34 | 33.54 | 30.61 | 30.19 | 30.91 | (1.20) | (4) | 1.43 | 5 | 32.34 | 30.91 | 1.43 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividend payout ratio | 51 | % | 55 | % | 53 | % | 64 | % | 124 | % | (395) | bps | (7,293) | bps | 55 | % | 54 | % | 158 | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend payout ratio, Underlying1 | 49 | 53 | 51 | 53 | 49 | (400) | bps | — | bps | 52 | 43 | 900 | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMON SHARES OUTSTANDING | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average: Basic | 440,802,738 | 446,561,996 | 454,142,489 | 461,358,681 | 466,234,324 | (5,759,258) | (1 | %) | (25,431,586) | (5 | %) | 450,678,038 | 475,089,384 | (24,411,346) | (5 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted | 444,836,786 | 449,913,467 | 456,561,022 | 463,797,964 | 468,159,167 | (5,076,681) | (1) | (23,322,381) | (5) | 453,510,245 | 476,693,148 | (23,182,903) | (5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common shares at period-end | 440,543,381 | 445,216,549 | 452,961,853 | 458,485,032 | 466,418,055 | (4,673,168) | (1) | (25,874,674) | (6) | 440,543,381 | 466,418,055 | (25,874,674) | (6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 These are non-GAAP financial measures. For further information on these measures, refer to "Non-GAAP Financial Measures and Reconciliations."
3
CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED
(dollars in millions, except per share data)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 Change | 2024 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $/bps | % | $/bps | % | $/bps | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCIAL RATIOS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest margin | 2.86 | % | 2.76 | % | 2.86 | % | 2.90 | % | 2.90 | % | 10 bps | (4) bps | 2.84 | % | 3.09 | % | (25) | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin, FTE1 | 2.87 | 2.77 | 2.87 | 2.91 | 2.91 | 10 | (4) | 2.85 | 3.10 | (25) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average common equity | 6.64 | 6.12 | 6.70 | 5.63 | 2.96 | 52 | 368 | 6.27 | 6.90 | (63) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return on average common equity, Underlying2 | 6.84 | 6.29 | 7.00 | 6.77 | 7.41 | 55 | (57) | 6.72 | 8.56 | (184) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average tangible common equity | 10.36 | 9.45 | 10.61 | 8.86 | 4.72 | 91 | 564 | 9.81 | 10.92 | (111) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return on average tangible common equity, Underlying2 | 10.66 | 9.71 | 11.09 | 10.65 | 11.84 | 95 | (118) | 10.51 | 13.53 | (302) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total assets | 0.73 | 0.70 | 0.72 | 0.61 | 0.33 | 3 | 40 | 0.69 | 0.72 | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return on average total assets, Underlying2 | 0.75 | 0.71 | 0.75 | 0.72 | 0.76 | 4 | (1) | 0.73 | 0.88 | (15) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total tangible assets | 0.76 | 0.72 | 0.75 | 0.63 | 0.35 | 4 | 41 | 0.71 | 0.75 | (4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Return on average total tangible assets, Underlying2 | 0.78 | 0.74 | 0.78 | 0.75 | 0.78 | 4 | — | 0.76 | 0.92 | (16) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Effective income tax rate | 21.04 | 18.56 | 18.49 | 22.28 | 7.59 | 248 | 1,345 | 20.06 | 20.76 | (70) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective income tax rate, Underlying2 | 21.17 | 18.75 | 20.33 | 22.84 | 22.25 | 242 | (108) | 20.80 | 22.48 | (168) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio | 66.27 | 66.23 | 66.27 | 69.33 | 81.13 | 4 | (1,486) | 67.03 | 66.97 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Efficiency ratio, Underlying2 | 65.36 | 65.61 | 64.59 | 65.05 | 63.77 | (25) | 159 | 65.15 | 60.81 | 434 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income as a % of total revenue | 28.90 | 27.95 | 28.16 | 26.41 | 25.16 | 95 | 374 | 27.86 | 24.12 | 374 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest income as a % of total revenue, Underlying2 | 28.54 | 28.05 | 28.00 | 26.32 | 25.16 | 49 | 338 | 27.73 | 24.12 | 361 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CAPITAL RATIOS - PERIOD-END (PRELIMINARY) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CET1 capital ratio | 10.8 | % | 10.6 | % | 10.7 | % | 10.6 | % | 10.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tier 1 capital ratio | 12.1 | 11.9 | 12.0 | 11.8 | 11.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total capital ratio | 14.0 | 13.9 | 14.0 | 13.8 | 13.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tier 1 leverage ratio | 9.4 | 9.4 | 9.4 | 9.3 | 9.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tangible common equity ratio | 6.8 | 7.0 | 6.5 | 6.5 | 6.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SELECTED BALANCE SHEET DATA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loan-to-deposit ratio (period-end balances) | 79.65 | % | 80.85 | % | 80.43 | % | 81.16 | % | 82.30 | % | (120) | bps | (265) | bps | 79.65 | % | 82.30 | % | (265) | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loan-to-deposit ratio (average balances) | 80.88 | 81.59 | 82.38 | 82.24 | 83.54 | (71) | bps | (266) | bps | 81.77 | 86.83 | (506) | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Full-time equivalent colleagues (period-end) | 17,287 | 17,329 | 17,510 | 17,354 | 17,570 | (42) | — | (283) | (2) | 17,287 | 17,570 | (283) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1Net interest margin is presented on a fully taxable-equivalent ("FTE") basis using the federal statutory tax rate of 21%. The FTE impact is predominantly attributable to commercial loans for the periods presented.
2These are non-GAAP financial measures. For further information on these measures, refer to "Non-GAAP Financial Measures and Reconciliations."
4
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(dollars in millions)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 Change | 2024 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest and fees on loans and leases | $1,910 | $1,976 | $2,011 | $2,051 | $2,144 | ($66) | (3 | %) | ($234) | (11 | %) | $7,948 | $8,489 | ($541) | (6 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest and fees on loans held for sale | 21 | 19 | 17 | 20 | 22 | 2 | 11 | (1) | (5) | 77 | 102 | (25) | (25) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment securities | 419 | 423 | 417 | 399 | 339 | (4) | (1) | 80 | 24 | 1,658 | 1,162 | 496 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits in banks | 112 | 121 | 130 | 140 | 171 | (9) | (7) | (59) | (35) | 503 | 451 | 52 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest income | 2,462 | 2,539 | 2,575 | 2,610 | 2,676 | (77) | (3) | (214) | (8) | 10,186 | 10,204 | (18) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits | 883 | 990 | 965 | 987 | 974 | (107) | (11) | (91) | (9) | 3,825 | 3,145 | 680 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Short-term borrowed funds | 1 | 3 | 4 | 7 | 7 | (2) | (67) | (6) | (86) | 15 | 43 | (28) | (65) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term borrowed funds | 166 | 177 | 196 | 174 | 207 | (11) | (6) | (41) | (20) | 713 | 775 | (62) | (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest expense | 1,050 | 1,170 | 1,165 | 1,168 | 1,188 | (120) | (10) | (138) | (12) | 4,553 | 3,963 | 590 | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | 1,412 | 1,369 | 1,410 | 1,442 | 1,488 | 43 | 3 | (76) | (5) | 5,633 | 6,241 | (608) | (10) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Service charges and fees | 109 | 109 | 106 | 96 | 104 | — | — | 5 | 5 | 420 | 410 | 10 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capital markets fees | 121 | 94 | 134 | 118 | 87 | 27 | 29 | 34 | 39 | 467 | 319 | 148 | 46 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Card fees | 97 | 93 | 92 | 86 | 70 | 4 | 4 | 27 | 39 | 368 | 296 | 72 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wealth fees1 | 75 | 76 | 75 | 68 | 68 | (1) | (1) | 7 | 10 | 294 | 259 | 35 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage banking fees | 60 | 46 | 54 | 49 | 57 | 14 | 30 | 3 | 5 | 209 | 242 | (33) | (14) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign exchange and derivative products | 35 | 36 | 39 | 36 | 43 | (1) | (3) | (8) | (19) | 146 | 183 | (37) | (20) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Letter of credit and loan fees | 45 | 45 | 43 | 42 | 42 | — | — | 3 | 7 | 175 | 168 | 7 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Securities gains, net | 4 | 9 | — | 5 | 9 | (5) | (56) | (5) | (56) | 18 | 28 | (10) | (36) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income | 28 | 24 | 10 | 17 | 20 | 4 | 17 | 8 | 40 | 79 | 78 | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest income | 574 | 532 | 553 | 517 | 500 | 42 | 8 | 74 | 15 | 2,176 | 1,983 | 193 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TOTAL REVENUE | 1,986 | 1,901 | 1,963 | 1,959 | 1,988 | 85 | 4 | (2) | — | 7,809 | 8,224 | (415) | (5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for credit losses | 162 | 172 | 182 | 171 | 171 | (10) | (6) | (9) | (5) | 687 | 687 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 674 | 647 | 645 | 691 | 667 | 27 | 4 | 7 | 1 | 2,657 | 2,599 | 58 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equipment and software | 193 | 194 | 190 | 192 | 215 | (1) | (1) | (22) | (10) | 769 | 756 | 13 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outside services | 170 | 146 | 165 | 158 | 174 | 24 | 16 | (4) | (2) | 639 | 687 | (48) | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Occupancy | 112 | 108 | 113 | 114 | 125 | 4 | 4 | (13) | (10) | 447 | 492 | (45) | (9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other operating expense | 167 | 164 | 188 | 203 | 431 | 3 | 2 | (264) | (61) | 722 | 973 | (251) | (26) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total noninterest expense | 1,316 | 1,259 | 1,301 | 1,358 | 1,612 | 57 | 5 | (296) | (18) | 5,234 | 5,507 | (273) | (5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income before income tax expense | 508 | 470 | 480 | 430 | 205 | 38 | 8 | 303 | 148 | 1,888 | 2,030 | (142) | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | 107 | 88 | 88 | 96 | 16 | 19 | 22 | 91 | NM | 379 | 422 | (43) | (10) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income | $401 | $382 | $392 | $334 | $189 | $19 | 5 | % | $212 | 112 | % | $1,509 | $1,608 | ($99) | (6 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income, Underlying2 | $412 | $392 | $408 | $395 | $426 | $20 | 5 | % | ($14) | (3 | %) | $1,607 | $1,965 | ($358) | (18 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income available to common stockholders | $367 | $344 | $357 | $304 | $159 | $23 | 7 | % | $208 | 131 | % | $1,372 | $1,491 | ($119) | (8 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income available to common stockholders, Underlying2 | $378 | $354 | $373 | $365 | $396 | $24 | 7 | % | ($18) | (5 | %) | $1,470 | $1,848 | ($378) | (20 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 Effective for the second quarter of 2024, Trust and investment services fees was renamed to Wealth fees to better reflect the broad range of wealth-related management fees and services provided to our customers.
2 These are non-GAAP financial measures. For further information on these measures, refer to "Non-GAAP Financial Measures and Reconciliations."
5
CONSOLIDATED BALANCE SHEETS (unaudited)
(dollars in millions, except par value)
| PERIOD-END BALANCES | AS OF | DECEMBER 31, 2024 CHANGE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dec 31, 2024 | Sept 30, 2024 | June 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | September 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | $1,409 | $979 | $1,191 | $1,098 | $1,794 | $430 | 44 | % | ($385) | (21 | %) | |||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing cash and due from banks | 9,192 | 9,936 | 10,580 | 10,501 | 9,834 | (744) | (7) | (642) | (7) | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits in banks | 635 | 648 | 559 | 392 | 405 | (13) | (2) | 230 | 57 | |||||||||||||||||||||||||||||||||||||||||||||||
| Debt securities available for sale, at fair value | 32,765 | 32,835 | 31,938 | 31,187 | 29,777 | (70) | — | 2,988 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||
| Debt securities held to maturity | 8,599 | 8,738 | 8,895 | 9,054 | 9,184 | (139) | (2) | (585) | (6) | |||||||||||||||||||||||||||||||||||||||||||||||
Loans held for sale | 858 | 663 | 683 | 555 | 779 | 195 | 29 | 79 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||
| Loans and leases | 139,203 | 141,632 | 141,842 | 143,188 | 145,959 | (2,429) | (2) | (6,756) | (5) | |||||||||||||||||||||||||||||||||||||||||||||||
| Less: Allowance for loan and lease losses | (2,061) | (2,079) | (2,125) | (2,086) | (2,098) | 18 | (1) | 37 | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| Net loans and leases | 137,142 | 139,553 | 139,717 | 141,102 | 143,861 | (2,411) | (2) | (6,719) | (5) | |||||||||||||||||||||||||||||||||||||||||||||||
| Derivative assets | 408 | 586 | 367 | 469 | 440 | (178) | (30) | (32) | (7) | |||||||||||||||||||||||||||||||||||||||||||||||
| Premises and equipment | 875 | 862 | 863 | 872 | 895 | 13 | 2 | (20) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| Bank-owned life insurance | 3,364 | 3,346 | 3,325 | 3,311 | 3,291 | 18 | 1 | 73 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | 8,187 | 8,187 | 8,187 | 8,188 | 8,188 | — | — | (1) | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Other intangible assets | 146 | 137 | 139 | 148 | 157 | 9 | 7 | (11) | (7) | |||||||||||||||||||||||||||||||||||||||||||||||
| Other assets | 13,941 | 13,236 | 13,494 | 13,571 | 13,359 | 705 | 5 | 582 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||
| TOTAL ASSETS | $217,521 | $219,706 | $219,938 | $220,448 | $221,964 | ($2,185) | (1 | %) | ($4,443) | (2 | %) | |||||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing | $36,920 | $35,978 | $36,927 | $36,593 | $37,107 | $942 | 3 | % | ($187) | (1 | %) | |||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing | 137,856 | 139,210 | 139,425 | 139,835 | 140,235 | (1,354) | (1) | (2,379) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total deposits | 174,776 | 175,188 | 176,352 | 176,428 | 177,342 | (412) | — | (2,566) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||
| Short-term borrowed funds | — | 15 | 2 | 9 | 505 | (15) | (100) | (505) | (100) | |||||||||||||||||||||||||||||||||||||||||||||||
| Derivative liabilities | 1,220 | 1,012 | 1,547 | 1,705 | 1,562 | 208 | 21 | (342) | (22) | |||||||||||||||||||||||||||||||||||||||||||||||
| Long-term borrowed funds: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FHLB advances | 53 | 553 | 553 | 2,036 | 3,786 | (500) | (90) | (3,733) | (99) | |||||||||||||||||||||||||||||||||||||||||||||||
| Senior debt | 7,168 | 7,766 | 6,512 | 6,414 | 5,170 | (598) | (8) | 1,998 | 39 | |||||||||||||||||||||||||||||||||||||||||||||||
| Subordinated debt and other debt | 5,180 | 5,625 | 6,017 | 5,354 | 4,511 | (445) | (8) | 669 | 15 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total long-term borrowed funds | 12,401 | 13,944 | 13,082 | 13,804 | 13,467 | (1,543) | (11) | (1,066) | (8) | |||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 4,870 | 4,615 | 5,086 | 4,741 | 4,746 | 255 | 6 | 124 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||
| TOTAL LIABILITIES | 193,267 | 194,774 | 196,069 | 196,687 | 197,622 | (1,507) | (1) | (4,355) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||
| STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred stock: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $25.00 par value, 100,000,000 shares authorized for each of the periods presented | 2,113 | 2,112 | 2,112 | 2,014 | 2,014 | 1 | — | 99 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||
| Common stock: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $0.01 par value, 1,000,000,000 shares authorized for each of the periods presented | 7 | 6 | 6 | 6 | 6 | 1 | 17 | 1 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||
| Additional paid-in capital | 22,364 | 22,327 | 22,299 | 22,272 | 22,250 | 37 | — | 114 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||
| Retained earnings | 10,412 | 10,233 | 10,079 | 9,923 | 9,816 | 179 | 2 | 596 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||
| Treasury stock, at cost | (7,047) | (6,820) | (6,492) | (6,290) | (5,986) | (227) | (3) | (1,061) | (18) | |||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated other comprehensive income (loss) | (3,595) | (2,926) | (4,135) | (4,164) | (3,758) | (669) | (23) | 163 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||
| TOTAL STOCKHOLDERS' EQUITY | 24,254 | 24,932 | 23,869 | 23,761 | 24,342 | (678) | (3) | (88) | — | |||||||||||||||||||||||||||||||||||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $217,521 | $219,706 | $219,938 | $220,448 | $221,964 | ($2,185) | (1 | %) | ($4,443) | (2 | %) | |||||||||||||||||||||||||||||||||||||||||||||
| Memo: Total tangible common equity | $14,246 | $14,931 | $13,866 | $13,844 | $14,417 | ($685) | (5 | %) | ($171) | (1 | %) | |||||||||||||||||||||||||||||||||||||||||||||
6
LOANS AND DEPOSITS
(dollars in millions)
| PERIOD-END BALANCES | AS OF | DECEMBER 31, 2024 CHANGE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dec 31, 2024 | Sept 30, 2024 | June 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sept 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| LOANS AND LEASES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial1 | $42,551 | $43,825 | $43,623 | $43,951 | $44,974 | ($1,274) | (3 | %) | ($2,423) | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | 27,225 | 27,983 | 28,311 | 28,872 | 29,471 | (758) | (3) | (2,246) | (8) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial | 69,776 | 71,808 | 71,934 | 72,823 | 74,445 | (2,032) | (3) | (4,669) | (6) | |||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgages | 32,726 | 32,379 | 31,890 | 31,512 | 31,332 | 347 | 1 | 1,394 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||
| Home equity | 16,495 | 15,992 | 15,534 | 15,113 | 15,040 | 503 | 3 | 1,455 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||
| Automobile | 4,744 | 5,540 | 6,383 | 7,277 | 8,258 | (796) | (14) | (3,514) | (43) | |||||||||||||||||||||||||||||||||||||||||||||||
| Education | 10,812 | 11,118 | 11,265 | 11,646 | 11,834 | (306) | (3) | (1,022) | (9) | |||||||||||||||||||||||||||||||||||||||||||||||
| Other retail | 4,650 | 4,795 | 4,836 | 4,817 | 5,050 | (145) | (3) | (400) | (8) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total retail | 69,427 | 69,824 | 69,908 | 70,365 | 71,514 | (397) | (1) | (2,087) | (3) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $139,203 | $141,632 | $141,842 | $143,188 | $145,959 | ($2,429) | (2 | %) | ($6,756) | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||
Loans held for sale | 858 | 663 | 683 | 555 | 779 | 195 | 29 | 79 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||
| Loans and leases and loans held for sale | $140,061 | $142,295 | $142,525 | $143,743 | $146,738 | ($2,234) | (2 | %) | ($6,677) | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||
| DEPOSITS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing demand | $36,920 | $35,978 | $36,927 | $36,593 | $37,107 | $942 | 3 | % | ($187) | (1 | %) | |||||||||||||||||||||||||||||||||||||||||||||
| Money market | 55,321 | 54,654 | 52,599 | 52,182 | 53,812 | 667 | 1 | 1,509 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||
| Checking with interest | 33,246 | 33,680 | 34,421 | 34,487 | 31,876 | (434) | (1) | 1,370 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||
| Savings | 25,976 | 26,489 | 27,240 | 27,912 | 27,983 | (513) | (2) | (2,007) | (7) | |||||||||||||||||||||||||||||||||||||||||||||||
Time | 23,313 | 24,387 | 25,165 | 25,254 | 26,564 | (1,074) | (4) | (3,251) | (12) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total deposits | $174,776 | $175,188 | $176,352 | $176,428 | $177,342 | ($412) | — | % | ($2,566) | (1 | %) | |||||||||||||||||||||||||||||||||||||||||||||
1Effective for the first quarter of 2024, the Company's lease portfolio is included in Commercial and industrial. Prior period results have been revised to conform to the new presentation.
7
| AVERAGE BALANCE SHEETS, ANNUALIZED YIELDS AND RATES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| QUARTERLY TRENDS | 4Q24 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 4Q23 | 3Q24 | 4Q23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest | Rate | Average Balance | Interest | Rate | Average Balance | Interest | Rate | Average Balance | Interest | Rate | Average Balance | Interest | Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTEREST-EARNING ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing cash and due from banks and deposits in banks | $9,459 | $112 | 4.65 | % | $8,896 | $121 | 5.30 | % | $12,387 | $171 | 5.43 | % | $563 | ($9) | (65) bps | ($2,928) | ($59) | (78) bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxable investment securities | 44,822 | 419 | 3.73 | 45,083 | 423 | 3.75 | 41,497 | 339 | 3.25 | (261) | (4) | (2) | 3,325 | 80 | 48 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-taxable investment securities | 1 | — | 2.60 | 1 | — | 2.60 | 2 | — | 2.66 | — | — | — | (1) | — | (6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total investment securities | 44,823 | 419 | 3.73 | 45,084 | 423 | 3.75 | 41,499 | 339 | 3.25 | (261) | (4) | (2) | 3,324 | 80 | 48 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial1 | 43,674 | 538 | 4.82 | 44,071 | 556 | 4.95 | 46,618 | 716 | 6.00 | (397) | (18) | (13) | (2,944) | (178) | (118) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | 27,681 | 419 | 5.93 | 28,209 | 452 | 6.26 | 29,460 | 476 | 6.32 | (528) | (33) | (33) | (1,779) | (57) | (39) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial | 71,355 | 957 | 5.25 | 72,280 | 1,008 | 5.46 | 76,078 | 1,192 | 6.13 | (925) | (51) | (21) | (4,723) | (235) | (88) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgages | 32,520 | 310 | 3.81 | 32,117 | 301 | 3.75 | 31,146 | 276 | 3.55 | 403 | 9 | 6 | 1,374 | 34 | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home equity | 16,246 | 311 | 7.61 | 15,733 | 317 | 8.02 | 14,889 | 302 | 8.04 | 513 | (6) | (41) | 1,357 | 9 | (43) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Automobile | 5,129 | 56 | 4.29 | 5,942 | 64 | 4.28 | 8,752 | 94 | 4.24 | (813) | (8) | 1 | (3,623) | (38) | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Education | 10,949 | 150 | 5.48 | 11,155 | 153 | 5.45 | 11,971 | 156 | 5.17 | (206) | (3) | 3 | (1,022) | (6) | 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other retail | 4,748 | 126 | 10.60 | 4,776 | 133 | 11.04 | 5,133 | 124 | 9.64 | (28) | (7) | (44) | (385) | 2 | 96 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total retail | 69,592 | 953 | 5.46 | 69,723 | 968 | 5.53 | 71,891 | 952 | 5.27 | (131) | (15) | (7) | (2,299) | 1 | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | 140,947 | 1,910 | 5.35 | 142,003 | 1,976 | 5.50 | 147,969 | 2,144 | 5.71 | (1,056) | (66) | (15) | (7,022) | (234) | (36) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans held for sale | 1,384 | 21 | 6.04 | 1,181 | 19 | 6.26 | 1,266 | 22 | 6.95 | 203 | 2 | (22) | 118 | (1) | (91) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-earning assets | 196,613 | 2,462 | 4.96 | 197,164 | 2,539 | 5.09 | 203,121 | 2,676 | 5.20 | (551) | (77) | (13) | (6,508) | (214) | (24) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-earning assets | 20,935 | 21,414 | 20,532 | (479) | 403 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TOTAL ASSETS | $217,548 | $218,578 | $223,653 | ($1,030) | ($6,105) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Checking with interest | $32,720 | $123 | 1.49 | % | $33,090 | $131 | 1.58 | % | $31,788 | $113 | 1.40 | % | ($370) | ($8) | (9) | $932 | $10 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Money market | 54,548 | 385 | 2.81 | 53,152 | 444 | 3.32 | 53,003 | 444 | 3.32 | 1,396 | (59) | (51) | 1,545 | (59) | (51) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Savings | 26,237 | 107 | 1.63 | 26,868 | 128 | 1.89 | 28,455 | 123 | 1.72 | (631) | (21) | (26) | (2,218) | (16) | (9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time | 24,053 | 268 | 4.42 | 24,705 | 287 | 4.65 | 25,492 | 294 | 4.59 | (652) | (19) | (23) | (1,439) | (26) | (17) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 137,558 | 883 | 2.55 | 137,815 | 990 | 2.86 | 138,738 | 974 | 2.79 | (257) | (107) | (31) | (1,180) | (91) | (24) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Short-term borrowed funds | 41 | 1 | 7.88 | 150 | 3 | 6.06 | 491 | 7 | 5.63 | (109) | (2) | 182 | (450) | (6) | 225 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FHLB advances | 172 | 2 | 4.55 | 477 | 6 | 5.38 | 5,751 | 83 | 5.62 | (305) | (4) | (83) | (5,579) | (81) | (107) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Senior debt | 7,316 | 90 | 4.92 | 7,462 | 93 | 5.01 | 5,217 | 57 | 4.34 | (146) | (3) | (9) | 2,099 | 33 | 58 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Subordinated debt and other debt | 5,401 | 74 | 5.49 | 5,751 | 78 | 5.43 | 4,720 | 67 | 5.71 | (350) | (4) | 6 | 681 | 7 | (22) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total long-term borrowed funds | 12,889 | 166 | 5.16 | 13,690 | 177 | 5.20 | 15,688 | 207 | 5.22 | (801) | (11) | (4) | (2,799) | (41) | (6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total borrowed funds | 12,930 | 167 | 5.17 | 13,840 | 180 | 5.21 | 16,179 | 214 | 5.24 | (910) | (13) | (4) | (3,249) | (47) | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 150,488 | 1,050 | 2.78 | 151,655 | 1,170 | 3.07 | 154,917 | 1,188 | 3.04 | (1,167) | (120) | (29) | (4,429) | (138) | (26) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 36,704 | 36,236 | 38,390 | 468 | (1,686) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 6,235 | 6,194 | 7,123 | 41 | (888) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TOTAL LIABILITIES | 193,427 | 194,085 | 200,430 | (658) | (7,003) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| STOCKHOLDERS' EQUITY | 24,121 | 24,493 | 23,223 | (372) | 898 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $217,548 | $218,578 | $223,653 | ($1,030) | ($6,105) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTEREST RATE SPREAD | 2.18 | % | 2.02 | % | 2.16 | % | 16 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NET INTEREST MARGIN AND NET INTEREST INCOME | $1,412 | 2.86 | % | $1,369 | 2.76 | % | $1,488 | 2.90 | % | $43 | 10 | ($76) | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET INTEREST MARGIN AND NET INTEREST INCOME, FTE2 | $1,416 | 2.87 | % | $1,373 | 2.77 | % | $1,492 | 2.91 | % | $43 | 10 | ($76) | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Memo: Total deposits (interest-bearing and noninterest-bearing demand) | $174,262 | $883 | 2.02 | % | $174,051 | $990 | 2.26 | % | $177,128 | $974 | 2.18 | % | $211 | ($107) | (24) bps | ($2,866) | ($91) | (16) bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1Effective for the first quarter of 2024, the Company's lease portfolio is included in Commercial and industrial. Prior period results have been revised to conform to the new presentation.
2Net interest income and net interest margin is presented on a fully taxable-equivalent ("FTE") basis using the federal statutory tax rate of 21%. The FTE impact is predominantly attributable to commercial loans for the periods presented.
8
| AVERAGE BALANCE SHEETS, ANNUALIZED YIELDS AND RATES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FULL YEAR | 2024 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest | Rate | Average Balance | Interest | Rate | Average Balance | Interest | Rate | ||||||||||||||||||||||||||||||||||||||||||||||||
| INTEREST-EARNING ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing cash and due from banks and deposits in banks | $9,566 | $503 | 5.17 | % | $8,531 | $451 | 5.22 | % | $1,035 | $52 | (5) | bps | ||||||||||||||||||||||||||||||||||||||||||||
| Taxable investment securities | 44,627 | 1,658 | 3.71 | 39,437 | 1,162 | 2.94 | 5,190 | 496 | 77 | |||||||||||||||||||||||||||||||||||||||||||||||
| Non-taxable investment securities | 1 | — | 2.60 | 2 | — | 2.68 | (1) | — | (8) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total investment securities | 44,628 | 1,658 | 3.71 | 39,439 | 1,162 | 2.94 | 5,189 | 496 | 77 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial1 | 44,174 | 2,333 | 5.20 | 49,998 | 3,002 | 5.92 | (5,824) | (669) | (72) | |||||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | 28,430 | 1,795 | 6.21 | 29,206 | 1,804 | 6.09 | (776) | (9) | 12 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial | 72,604 | 4,128 | 5.60 | 79,204 | 4,806 | 5.99 | (6,600) | (678) | (39) | |||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgages | 31,916 | 1,184 | 3.71 | 30,660 | 1,052 | 3.43 | 1,256 | 132 | 28 | |||||||||||||||||||||||||||||||||||||||||||||||
| Home equity | 15,603 | 1,231 | 7.89 | 14,475 | 1,092 | 7.54 | 1,128 | 139 | 35 | |||||||||||||||||||||||||||||||||||||||||||||||
| Automobile | 6,404 | 274 | 4.27 | 10,374 | 429 | 4.13 | (3,970) | (155) | 14 | |||||||||||||||||||||||||||||||||||||||||||||||
| Education | 11,340 | 613 | 5.41 | 12,333 | 621 | 5.04 | (993) | (8) | 37 | |||||||||||||||||||||||||||||||||||||||||||||||
| Other retail | 4,837 | 518 | 10.72 | 5,171 | 489 | 9.46 | (334) | 29 | 126 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total retail | 70,100 | 3,820 | 5.45 | 73,013 | 3,683 | 5.04 | (2,913) | 137 | 41 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | 142,704 | 7,948 | 5.52 | 152,217 | 8,489 | 5.53 | (9,513) | (541) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Loans held for sale | 1,174 | 77 | 6.51 | 1,499 | 102 | 6.75 | (325) | (25) | (24) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-earning assets | 198,072 | 10,186 | 5.10 | 201,686 | 10,204 | 5.02 | (3,614) | (18) | 8 | |||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest-earning assets | 20,952 | 20,535 | 417 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| TOTAL ASSETS | $219,024 | $222,221 | ($3,197) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Checking with interest | $32,943 | $491 | 1.49 | % | $33,960 | $446 | 1.31 | % | ($1,017) | $45 | 18 | |||||||||||||||||||||||||||||||||||||||||||||
| Money market | 53,053 | 1,705 | 3.21 | 51,178 | 1,494 | 2.92 | 1,875 | 211 | 29 | |||||||||||||||||||||||||||||||||||||||||||||||
Savings | 27,100 | 476 | 1.76 | 29,266 | 433 | 1.48 | (2,166) | 43 | 28 | |||||||||||||||||||||||||||||||||||||||||||||||
Time | 24,967 | 1,153 | 4.62 | 19,320 | 772 | 4.00 | 5,647 | 381 | 62 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing deposits | 138,063 | 3,825 | 2.77 | 133,724 | 3,145 | 2.35 | 4,339 | 680 | 42 | |||||||||||||||||||||||||||||||||||||||||||||||
| Short-term borrowed funds | 252 | 15 | 5.73 | 746 | 43 | 5.70 | (494) | (28) | 3 | |||||||||||||||||||||||||||||||||||||||||||||||
| FHLB advances | 1,319 | 74 | 5.52 | 7,431 | 383 | 5.09 | (6,112) | (309) | 43 | |||||||||||||||||||||||||||||||||||||||||||||||
| Senior debt | 6,896 | 333 | 4.84 | 5,335 | 231 | 4.33 | 1,561 | 102 | 51 | |||||||||||||||||||||||||||||||||||||||||||||||
| Subordinated debt and other debt | 5,616 | 306 | 5.45 | 3,087 | 161 | 5.21 | 2,529 | 145 | 24 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total long-term borrowed funds | 13,831 | 713 | 5.15 | 15,853 | 775 | 4.86 | (2,022) | (62) | 29 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total borrowed funds | 14,083 | 728 | 5.16 | 16,599 | 818 | 4.89 | (2,516) | (90) | 27 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 152,146 | 4,553 | 2.99 | 150,323 | 3,963 | 2.63 | 1,823 | 590 | 36 | |||||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 36,457 | 41,581 | (5,124) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 6,466 | 6,711 | (245) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| TOTAL LIABILITIES | 195,069 | 198,615 | (3,546) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| STOCKHOLDERS' EQUITY | 23,955 | 23,606 | 349 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $219,024 | $222,221 | ($3,197) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTEREST RATE SPREAD | 2.11 | % | 2.39 | % | (28) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| NET INTEREST MARGIN AND NET INTEREST INCOME | $5,633 | 2.84 | % | $6,241 | 3.09 | % | ($608) | (25) | ||||||||||||||||||||||||||||||||||||||||||||||||
NET INTEREST MARGIN AND NET INTEREST INCOME, FTE2 | $5,650 | 2.85 | % | $6,258 | 3.10 | % | ($608) | (25) | ||||||||||||||||||||||||||||||||||||||||||||||||
Memo: Total deposits (interest-bearing and noninterest-bearing demand) | $174,520 | $3,825 | 2.19 | % | $175,305 | $3,145 | 1.79 | % | ($785) | $680 | 40 | bps | ||||||||||||||||||||||||||||||||||||||||||||
1Effective for the first quarter of 2024, the Company's lease portfolio is included in Commercial and industrial. Prior period results have been revised to conform to the new presentation.
2Net interest income and net interest margin is presented on a fully taxable-equivalent ("FTE") basis using the federal statutory tax rate of 21%. The FTE impact is predominantly attributable to commercial loans for the periods presented.
9
MORTGAGE BANKING FEES SUMMARY
(dollars in millions)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 Change | 2024 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $/bps | % | $/bps | % | $/bps | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MORTGAGE BANKING FEES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production revenue | $14 | $15 | $14 | $15 | $11 | ($1) | (7 | %) | $3 | 27 | % | $58 | $71 | ($13) | (18 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage servicing revenue | 33 | 33 | 35 | 33 | 37 | — | — | (4) | (11) | 134 | 143 | (9) | (6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MSR valuation changes, net of hedge impact | 13 | (2) | 5 | 1 | 9 | 15 | NM | 4 | 44 | 17 | 28 | (11) | (39) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total mortgage banking fees | $60 | $46 | $54 | $49 | $57 | $14 | 30 | % | $3 | 5 | % | $209 | $242 | ($33) | (14 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pull-through adjusted locks | $1,543 | $1,996 | $1,930 | $1,404 | $1,412 | ($453) | (23 | %) | $131 | 9 | % | $6,873 | $8,757 | ($1,884) | (22 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Production revenue as a percentage of Pull-through adjusted locks | 0.90 | % | 0.76 | % | 0.74 | % | 1.05 | % | 0.78 | % | 14 | bps | 13 | bps | 0.85 | % | 0.81 | % | 3 | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RESIDENTIAL REAL ESTATE ORIGINATIONS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail | $1,680 | $1,749 | $1,584 | $1,045 | $958 | ($69) | (4 | %) | $722 | 75 | % | $6,058 | $4,375 | $1,683 | 38 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Third Party | 1,341 | 1,504 | 1,323 | 892 | 1,214 | (163) | (11) | 127 | 10 | 5,060 | 7,182 | (2,122) | (30) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $3,021 | $3,253 | $2,907 | $1,937 | $2,172 | ($232) | (7 | %) | $849 | 39 | % | $11,118 | $11,557 | ($439) | (4 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Originated for sale | $1,948 | $2,148 | $1,872 | $1,296 | $1,595 | ($200) | (9 | %) | $353 | 22 | % | $7,264 | $8,935 | ($1,671) | (19 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Originated for investment | 1,073 | 1,105 | 1,035 | 641 | 577 | (32) | (3) | 496 | 86 | 3,854 | 2,622 | 1,232 | 47 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $3,021 | $3,253 | $2,907 | $1,937 | $2,172 | ($232) | (7 | %) | $849 | 39 | % | $11,118 | $11,557 | ($439) | (4 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MORTGAGE SERVICING INFORMATION (UPB) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans serviced for others | $95,600 | $96,120 | $96,439 | $96,952 | $97,420 | ($520) | (1 | %) | ($1,820) | (2 | %) | $95,600 | $97,420 | ($1,820) | (2 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Owned loans serviced | 33,064 | 32,655 | 32,118 | 31,659 | 31,640 | 409 | 1 | 1,424 | 5 | 33,064 | 31,640 | 1,424 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $128,664 | $128,775 | $128,557 | $128,611 | $129,060 | ($111) | — | % | ($396) | — | % | $128,664 | $129,060 | ($396) | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MSR at fair value | $1,491 | $1,501 | $1,568 | $1,564 | $1,552 | ($10) | (1 | %) | ($61) | (4 | %) | $1,491 | $1,552 | ($61) | (4 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
10
SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING
(dollars in millions)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSUMER BANKING | 4Q24 Change | 2024 Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $/bps | % | $/bps | % | $/bps | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $1,196 | $1,156 | $1,120 | $1,093 | $1,086 | $40 | 3 | % | $110 | 10 | % | $4,565 | $4,187 | $378 | 9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income | 311 | 285 | 277 | 258 | 265 | 26 | 9 | 46 | 17 | 1,131 | 1,067 | 64 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue | 1,507 | 1,441 | 1,397 | 1,351 | 1,351 | 66 | 5 | 156 | 12 | 5,696 | 5,254 | 442 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expense | 944 | 916 | 915 | 903 | 905 | 28 | 3 | 39 | 4 | 3,678 | 3,542 | 136 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Profit (loss) before credit losses | 563 | 525 | 482 | 448 | 446 | 38 | 7 | 117 | 26 | 2,018 | 1,712 | 306 | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net charge-offs | 82 | 84 | 84 | 81 | 82 | (2) | (2) | — | — | 331 | 280 | 51 | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income tax expense (benefit) | 481 | 441 | 398 | 367 | 364 | 40 | 9 | 117 | 32 | 1,687 | 1,432 | 255 | 18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 123 | 114 | 102 | 95 | 95 | 9 | 8 | 28 | 29 | 434 | 373 | 61 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $358 | $327 | $296 | $272 | $269 | $31 | 9 | % | $89 | 33 | % | $1,253 | $1,059 | $194 | 18 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $76,608 | $75,392 | $74,295 | $73,833 | $73,334 | $1,216 | 2 | % | $3,274 | 4 | % | $75,037 | $72,693 | $2,344 | 3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases1 | 70,274 | 69,021 | 67,960 | 67,448 | 66,906 | 1,253 | 2 | 3,368 | 5 | 68,681 | 66,356 | 2,325 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits | 124,552 | 121,899 | 120,478 | 120,019 | 118,474 | 2,653 | 2 | 6,078 | 5 | 121,745 | 116,980 | 4,765 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-earning assets | 70,857 | 69,608 | 68,552 | 68,050 | 67,524 | 1,249 | 2 | 3,333 | 5 | 69,272 | 66,999 | 2,273 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KEY METRICS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest margin | 6.72 | % | 6.60 | % | 6.57 | % | 6.46 | % | 6.40 | % | 12 | bps | 32 | bps | 6.59 | % | 6.25 | % | 34 | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio | 62.60 | 63.53 | 65.49 | 66.87 | 67.08 | (93) | bps | (448) | bps | 64.56 | 67.42 | (286) | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loan-to-deposit ratio (period-end balances) | 55.85 | 56.34 | 55.73 | 55.25 | 55.52 | (49) | bps | 33 | bps | 55.85 | 55.52 | 33 | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loan-to-deposit ratio (average balances) | 55.88 | 56.05 | 55.97 | 55.80 | 55.88 | (17) | bps | — | bps | 55.92 | 56.07 | (15) | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total tangible assets | 1.87 | 1.74 | 1.61 | 1.49 | 1.47 | 13 | bps | 40 | bps | 1.68 | 1.47 | 21 | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 Includes loans held for sale.
11
SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING
(dollars in millions)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMERCIAL BANKING | 4Q24 Change | 2024 Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $/bps | % | $/bps | % | $/bps | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | $464 | $478 | $494 | $514 | $551 | ($14) | (3 | %) | ($87) | (16 | %) | $1,950 | $2,292 | ($342) | (15 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income | 232 | 207 | 242 | 227 | 196 | 25 | 12 | 36 | 18 | 908 | 784 | 124 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue | 696 | 685 | 736 | 741 | 747 | 11 | 2 | (51) | (7) | 2,858 | 3,076 | (218) | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expense | 313 | 300 | 311 | 317 | 324 | 13 | 4 | (11) | (3) | 1,241 | 1,295 | (54) | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Profit (loss) before credit losses | 383 | 385 | 425 | 424 | 423 | (2) | (1) | (40) | (9) | 1,617 | 1,781 | (164) | (9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net charge-offs | 91 | 91 | 90 | 81 | 65 | — | — | 26 | 40 | 353 | 250 | 103 | 41 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income tax expense (benefit) | 292 | 294 | 335 | 343 | 358 | (2) | (1) | (66) | (18) | 1,264 | 1,531 | (267) | (17) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 68 | 63 | 76 | 84 | 89 | 5 | 8 | (21) | (24) | 291 | 378 | (87) | (23) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $224 | $231 | $259 | $259 | $269 | ($7) | (3 | %) | ($45) | (17 | %) | $973 | $1,153 | ($180) | (16 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $66,787 | $68,092 | $68,958 | $70,100 | $72,758 | ($1,305) | (2 | %) | ($5,971) | (8 | %) | $68,478 | $76,028 | ($7,550) | (10 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases1 | 63,789 | 64,974 | 65,997 | 67,187 | 69,899 | (1,185) | (2) | (6,110) | (9) | 65,481 | 72,937 | (7,456) | (10) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits | 43,597 | 44,190 | 44,203 | 45,912 | 46,962 | (593) | (1) | (3,365) | (7) | 44,472 | 47,155 | (2,683) | (6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-earning assets | 64,419 | 65,550 | 66,447 | 67,536 | 70,267 | (1,131) | (2) | (5,848) | (8) | 65,982 | 73,321 | (7,339) | (10) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KEY METRICS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest margin | 2.86 | % | 2.90 | % | 2.99 | % | 3.07 | % | 3.11 | % | (4) | bps | (25) | bps | 2.96 | % | 3.12 | % | (16) | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio | 44.78 | 43.84 | 42.28 | 42.80 | 43.44 | 94 | bps | 134 | bps | 43.40 | 42.10 | 130 | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loan-to-deposit ratio (period-end balances) | 139.43 | 140.42 | 141.41 | 143.98 | 146.09 | (99) | bps | (666) | bps | 139.43 | 146.09 | (666) | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loan-to-deposit ratio (average balances) | 144.70 | 145.93 | 148.15 | 145.05 | 147.64 | (123) | bps | (294) | bps | 145.95 | 153.12 | (717) | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total tangible assets | 1.35 | 1.37 | 1.52 | 1.50 | 1.48 | (2) | bps | (13) | bps | 1.44 | 1.53 | (9) | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 Includes loans held for sale.
12
SEGMENT FINANCIAL HIGHLIGHTS - NON-CORE
(dollars in millions)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NON-CORE | 4Q24 Change | 2024 Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $/bps | % | $/bps | % | $/bps | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | ($21) | ($28) | ($31) | ($37) | ($45) | $7 | 25 | % | $24 | 53 | % | ($117) | ($129) | $12 | 9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue | (21) | (28) | (31) | (37) | (45) | 7 | 25 | 24 | 53 | (117) | (129) | 12 | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expense | 24 | 23 | 26 | 25 | 28 | 1 | 4 | (4) | (14) | 98 | 123 | (25) | (20) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Profit (loss) before credit losses | (45) | (51) | (57) | (62) | (73) | 6 | 12 | 28 | 38 | (215) | (252) | 37 | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net charge offs | 15 | 17 | 10 | 19 | 24 | (2) | (12) | (9) | (38) | 61 | 78 | (17) | (22) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income tax expense (benefit) | (60) | (68) | (67) | (81) | (97) | 8 | 12 | 37 | 38 | (276) | (330) | 54 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | (15) | (17) | (17) | (21) | (25) | 2 | 12 | 10 | 40 | (70) | (86) | 16 | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | ($45) | ($51) | ($50) | ($60) | ($72) | $6 | 12 | % | $27 | 38 | % | ($206) | ($244) | $38 | 16 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $7,428 | $8,389 | $9,418 | $10,554 | $11,776 | ($961) | (11 | %) | ($4,348) | (37 | %) | $8,942 | $13,745 | ($4,803) | (35 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases1 | 7,394 | 8,352 | 9,376 | 10,507 | 11,701 | (958) | (11) | (4,307) | (37) | 8,902 | 13,669 | (4,767) | (35) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-earning assets | 7,394 | 8,352 | 9,376 | 10,507 | 11,726 | (958) | (11) | (4,332) | (37) | 8,902 | 13,675 | (4,773) | (35) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KEY METRICS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest margin | (1.12) | % | (1.30) | % | (1.36) | % | (1.41) | % | (1.54) | % | 18 | bps | 42 | bps | (1.31) | % | (0.94) | % | (37) | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total tangible assets | (2.38) | (2.40) | (2.14) | (2.30) | (2.42) | 2 | bps | 4 | bps | (2.30) | (1.78) | (52) | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 Includes loans held for sale.
13
SEGMENT FINANCIAL HIGHLIGHTS - OTHER
(dollars in millions)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER1 | 4Q24 Change | 2024 Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | ($227) | ($237) | ($173) | ($128) | ($104) | $10 | 4 | % | ($123) | (118 | %) | ($765) | ($109) | ($656) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income | 31 | 40 | 34 | 32 | 39 | (9) | (23) | (8) | (21) | 137 | 132 | 5 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue | (196) | (197) | (139) | (96) | (65) | 1 | 1 | (131) | (202) | (628) | 23 | (651) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expense | 35 | 20 | 49 | 113 | 355 | 15 | 75 | (320) | (90) | 217 | 547 | (330) | (60) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Profit (loss) before provision (benefit) for credit losses | (231) | (217) | (188) | (209) | (420) | (14) | (6) | 189 | 45 | (845) | (524) | (321) | (61) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for credit losses | (26) | (20) | (2) | (10) | — | (6) | (30) | (26) | (100) | (58) | 79 | (137) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income tax expense (benefit) | (205) | (197) | (186) | (199) | (420) | (8) | (4) | 215 | 51 | (787) | (603) | (184) | (31) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | (69) | (72) | (73) | (62) | (143) | 3 | 4 | 74 | 52 | (276) | (243) | (33) | (14) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | ($136) | ($125) | ($113) | ($137) | ($277) | ($11) | (9 | %) | $141 | 51 | % | ($511) | ($360) | ($151) | (42 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $66,725 | $66,705 | $66,551 | $66,283 | $65,785 | $20 | — | % | $940 | 1 | % | $66,567 | $59,755 | $6,812 | 11 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans and leases2 | 874 | 837 | 789 | 754 | 729 | 37 | 4 | 145 | 20 | 813 | 755 | 58 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits | 6,113 | 7,962 | 8,989 | 10,173 | 11,692 | (1,849) | (23) | (5,579) | (48) | 8,303 | 11,170 | (2,867) | (26) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-earning assets | 53,944 | 53,654 | 54,089 | 53,976 | 53,604 | 290 | 1 | 340 | 1 | 53,915 | 47,691 | 6,224 | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 Includes assets, liabilities, capital, revenues, provision for credit losses, expenses and income tax expense not attributed to our Consumer Banking, Commercial Banking, or Non-Core segments as well as treasury and community development.
2 Includes loans held for sale.
14
CREDIT-RELATED INFORMATION
(dollars in millions)
| AS OF | DECEMBER 31, 2024 CHANGE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dec 31, 2024 | Sept 30, 2024 | June 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sept 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| $/bps/% | % | $/bps/% | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| NONACCRUAL LOANS AND LEASES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial1 | $241 | $219 | $261 | $294 | $297 | $22 | 10 | % | ($56) | (19 | %) | |||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | 776 | 852 | 678 | 597 | 477 | (76) | (9) | 299 | 63 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial | 1,017 | 1,071 | 939 | 891 | 774 | (54) | (5) | 243 | 31 | |||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgages2 | 192 | 169 | 153 | 174 | 177 | 23 | 14 | 15 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||
| Home equity | 283 | 281 | 279 | 288 | 285 | 2 | 1 | (2) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||
| Automobile | 48 | 46 | 44 | 47 | 61 | 2 | 4 | (13) | (21) | |||||||||||||||||||||||||||||||||||||||||||||||
| Education | 56 | 59 | 52 | 29 | 28 | (3) | (5) | 28 | 100 | |||||||||||||||||||||||||||||||||||||||||||||||
| Other retail | 68 | 61 | 60 | 40 | 39 | 7 | 11 | 29 | 74 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total retail | 647 | 616 | 588 | 578 | 590 | 31 | 5 | 57 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||
| Nonaccrual loans and leases | 1,664 | 1,687 | 1,527 | 1,469 | 1,364 | (23) | (1) | 300 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||
| Repossessed assets | 13 | 14 | 13 | 14 | 14 | (1) | (7) | (1) | (7) | |||||||||||||||||||||||||||||||||||||||||||||||
| Nonaccrual loans and leases and repossessed assets | $1,677 | $1,701 | $1,540 | $1,483 | $1,378 | ($24) | (1 | %) | $299 | 22 | % | |||||||||||||||||||||||||||||||||||||||||||||
NONACCRUAL LOANS AND LEASES BY PRODUCT3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial | $1,017 | $1,071 | $939 | $891 | $774 | ($54) | (5 | %) | $243 | 31 | % | |||||||||||||||||||||||||||||||||||||||||||||
| Retail | 660 | 630 | 601 | 592 | 604 | 30 | 5 | 56 | 9 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total nonaccrual loans and leases | $1,677 | $1,701 | $1,540 | $1,483 | $1,378 | ($24) | (1 | %) | $299 | 22 | % | |||||||||||||||||||||||||||||||||||||||||||||
| ASSET QUALITY RATIOS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses to loans and leases | 1.48 | % | 1.47 | % | 1.50 | % | 1.46 | % | 1.44 | % | 1 | bps | 4 | bps | ||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses to loans and leases | 1.62 | 1.61 | 1.63 | 1.61 | 1.59 | 1 | bps | 3 | bps | |||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses to nonaccrual loans and leases | 124 | 123 | 139 | 142 | 154 | 1 | % | (30 | %) | |||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses to nonaccrual loans and leases | 136 | 136 | 151 | 157 | 170 | — | % | (34 | %) | |||||||||||||||||||||||||||||||||||||||||||||||
| Nonaccrual loans and leases to loans and leases | 1.20 | 1.19 | 1.08 | 1.02 | 0.93 | 1 | bps | 27 | bps | |||||||||||||||||||||||||||||||||||||||||||||||
1Effective for the first quarter of 2024, the Company's lease portfolio is included in Commercial and industrial. Prior period results have been revised to conform to the new presentation.
2Loans fully or partially guaranteed by the FHA, VA and USDA are classified as accruing.
3Nonaccrual loans and leases by product includes repossessed assets.
15
CREDIT-RELATED INFORMATION, CONTINUED
(dollars in millions)
| AS OF | DECEMBER 31, 2024 CHANGE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dec 31, 2024 | Sept 30, 2024 | June 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sept 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| $/bps | % | $/bps | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial1 | $8 | $5 | $7 | $23 | $6 | $3 | 60 | % | $2 | 33 | % | |||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | 6 | 15 | 36 | 39 | 40 | (9) | (60) | (34) | (85) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial | 14 | 20 | 43 | 62 | 46 | (6) | (30) | (32) | (70) | |||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgages2 | 179 | 146 | 182 | 209 | 256 | 33 | 23 | (77) | (30) | |||||||||||||||||||||||||||||||||||||||||||||||
| Home equity | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Automobile | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Education | 2 | 2 | 2 | 2 | 2 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Other retail | 1 | 1 | 1 | 27 | 29 | — | — | (28) | (97) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total retail | 182 | 149 | 185 | 238 | 287 | 33 | 22 | (105) | (37) | |||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $196 | $169 | $228 | $300 | $333 | $27 | 16 | % | ($137) | (41 | %) | |||||||||||||||||||||||||||||||||||||||||||||
1Effective for the first quarter of 2024, the Company's lease portfolio is included in Commercial and industrial. Prior period results have been revised to conform to the new presentation.
2 90+ days past due and accruing includes $172 million, $145 million, $168 million, $202 million, and $243 million of loans fully or partially guaranteed by the FHA, VA, and USDA for December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, respectively.
16
CREDIT-RELATED INFORMATION, CONTINUED
(dollars in millions)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 Change | 2024 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CHARGE-OFFS, RECOVERIES AND RELATED RATIOS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GROSS CHARGE-OFFS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial1 | $22 | $57 | $14 | $14 | $24 | ($35) | (61 | %) | ($2) | (8 | %) | $107 | $121 | ($14) | (12 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | 89 | 49 | 86 | 88 | 49 | 40 | 82 | 40 | 82 | 312 | 164 | 148 | 90 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial | 111 | 106 | 100 | 102 | 73 | 5 | 5 | 38 | 52 | 419 | 285 | 134 | 47 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgages | — | 1 | 1 | 2 | 3 | (1) | (100) | (3) | (100) | 4 | 6 | (2) | (33) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home equity | 6 | 4 | 4 | 4 | 4 | 2 | 50 | 2 | 50 | 18 | 12 | 6 | 50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Automobile | 22 | 25 | 19 | 28 | 31 | (3) | (12) | (9) | (29) | 94 | 113 | (19) | (17) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Education | 33 | 30 | 31 | 32 | 35 | 3 | 10 | (2) | (6) | 126 | 111 | 15 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other retail | 66 | 65 | 68 | 63 | 60 | 1 | 2 | 6 | 10 | 262 | 230 | 32 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total retail | 127 | 125 | 123 | 129 | 133 | 2 | 2 | (6) | (5) | 504 | 472 | 32 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total gross charge-offs | $238 | $231 | $223 | $231 | $206 | $7 | 3 | % | $32 | 16 | % | $923 | $757 | $166 | 22 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GROSS RECOVERIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial1 | $7 | $3 | $4 | $17 | $3 | $4 | 133 | % | $4 | 133 | % | $31 | $15 | $16 | 107 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | 7 | 5 | — | — | 1 | 2 | 40 | 6 | NM | 12 | 3 | 9 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial | 14 | 8 | 4 | 17 | 4 | 6 | 75 | 10 | 250 | 43 | 18 | 25 | 139 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgages | 1 | 1 | 1 | 1 | 1 | — | — | — | — | 4 | 4 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home equity | 7 | 5 | 7 | 6 | 5 | 2 | 40 | 2 | 40 | 25 | 22 | 3 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Automobile | 12 | 12 | 15 | 14 | 14 | — | — | (2) | (14) | 53 | 58 | (5) | (9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Education | 5 | 6 | 5 | 5 | 5 | (1) | (17) | — | — | 21 | 19 | 2 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other retail | 10 | 7 | 7 | 7 | 6 | 3 | 43 | 4 | 67 | 31 | 27 | 4 | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total retail | 35 | 31 | 35 | 33 | 31 | 4 | 13 | 4 | 13 | 134 | 130 | 4 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total gross recoveries | $49 | $39 | $39 | $50 | $35 | $10 | 26 | % | $14 | 40 | % | $177 | $148 | $29 | 20 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NET CHARGE-OFFS (RECOVERIES) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial1 | $15 | $54 | $10 | ($3) | $21 | ($39) | (72 | %) | ($6) | (29 | %) | $76 | $106 | ($30) | (28 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | 82 | 44 | 86 | 88 | 48 | 38 | 86 | 34 | 71 | 300 | 161 | 139 | 86 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial | 97 | 98 | 96 | 85 | 69 | (1) | (1) | 28 | 41 | 376 | 267 | 109 | 41 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgages | (1) | — | — | 1 | 2 | (1) | (100) | (3) | NM | — | 2 | (2) | (100) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home equity | (1) | (1) | (3) | (2) | (1) | — | — | — | — | (7) | (10) | 3 | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Automobile | 10 | 13 | 4 | 14 | 17 | (3) | (23) | (7) | (41) | 41 | 55 | (14) | (25) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Education | 28 | 24 | 26 | 27 | 30 | 4 | 17 | (2) | (7) | 105 | 92 | 13 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other retail | 56 | 58 | 61 | 56 | 54 | (2) | (3) | 2 | 4 | 231 | 203 | 28 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total retail | 92 | 94 | 88 | 96 | 102 | (2) | (2) | (10) | (10) | 370 | 342 | 28 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total net charge-offs | $189 | $192 | $184 | $181 | $171 | ($3) | (2 | %) | $18 | 11 | % | $746 | $609 | $137 | 22 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1Effective for the first quarter of 2024, the Company's lease portfolio is included in Commercial and industrial. Prior period results have been revised to conform to the new presentation.
17
CREDIT-RELATED INFORMATION, CONTINUED
(dollars in millions)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 Change | 2024 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $/bps | % | $/bps | % | $/bps | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial1 | 0.14 | % | 0.49 | % | 0.09 | % | (0.03 | %) | 0.18 | % | (35) | bps | (4) | bps | 0.17 | % | 0.21 | % | (4) | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | 1.17 | 0.62 | 1.20 | 1.22 | 0.66 | 55 | 51 | 1.05 | 0.56 | 49 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial | 0.54 | 0.54 | 0.53 | 0.47 | 0.36 | — | 18 | 0.52 | 0.34 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgages | — | — | — | 0.01 | 0.02 | — | (2) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home equity | (0.01) | (0.03) | (0.07) | (0.06) | (0.04) | 2 | 3 | (0.04) | (0.07) | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Automobile | 0.83 | 0.81 | 0.27 | 0.73 | 0.77 | 2 | 6 | 0.65 | 0.53 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Education | 1.01 | 0.85 | 0.93 | 0.92 | 1.00 | 16 | 1 | 0.93 | 0.74 | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other retail | 4.54 | 4.93 | 4.98 | 4.56 | 4.13 | (39) | 41 | 4.75 | 3.93 | 82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total retail | 0.53 | 0.54 | 0.51 | 0.54 | 0.56 | (1) | (3) | 0.53 | 0.47 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | 0.53 | % | 0.54 | % | 0.52 | % | 0.50 | % | 0.46 | % | (1) | bps | 7 | bps | 0.52 | % | 0.40 | % | 12 | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Memo: Average loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial1 | $43,674 | $44,071 | $44,381 | $44,577 | $46,618 | ($397) | (1 | %) | ($2,944) | (6 | %) | $44,174 | $49,998 | ($5,824) | (12 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial real estate | 27,681 | 28,209 | 28,574 | 29,265 | 29,460 | (528) | (2) | (1,779) | (6) | 28,430 | 29,206 | (776) | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total commercial | 71,355 | 72,280 | 72,955 | 73,842 | 76,078 | (925) | (1) | (4,723) | (6) | 72,604 | 79,204 | (6,600) | (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Residential mortgages | 32,520 | 32,117 | 31,633 | 31,384 | 31,146 | 403 | 1 | 1,374 | 4 | 31,916 | 30,660 | 1,256 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home equity | 16,246 | 15,733 | 15,343 | 15,080 | 14,889 | 513 | 3 | 1,357 | 9 | 15,603 | 14,475 | 1,128 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Automobile | 5,129 | 5,942 | 6,807 | 7,758 | 8,752 | (813) | (14) | (3,623) | (41) | 6,404 | 10,374 | (3,970) | (38) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Education | 10,949 | 11,155 | 11,447 | 11,816 | 11,971 | (206) | (2) | (1,022) | (9) | 11,340 | 12,333 | (993) | (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other retail | 4,748 | 4,776 | 4,882 | 4,942 | 5,133 | (28) | (1) | (385) | (8) | 4,837 | 5,171 | (334) | (6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total retail | 69,592 | 69,723 | 70,112 | 70,980 | 71,891 | (131) | — | (2,299) | (3) | 70,100 | 73,013 | (2,913) | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans and leases | $140,947 | $142,003 | $143,067 | $144,822 | $147,969 | ($1,056) | (1 | %) | ($7,022) | (5 | %) | $142,704 | $152,217 | ($9,513) | (6 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1Effective for the first quarter of 2024, the Company's lease portfolio is included in Commercial and industrial. Prior period results have been revised to conform to the new presentation.
18
CREDIT-RELATED INFORMATION, CONTINUED
(dollars in millions)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 Change | 2024 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses - beginning | $2,079 | $2,125 | $2,086 | $2,098 | $2,080 | ($46) | (2 | %) | ($1) | — | % | $2,098 | $1,983 | $115 | 6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Charge-offs: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial | 111 | 106 | 100 | 102 | 73 | 5 | 5 | 38 | 52 | 419 | 285 | 134 | 47 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail | 127 | 125 | 123 | 129 | 133 | 2 | 2 | (6) | (5) | 504 | 472 | 32 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total charge-offs | 238 | 231 | 223 | 231 | 206 | 7 | 3 | 32 | 16 | 923 | 757 | 166 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Recoveries: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial | 14 | 8 | 4 | 17 | 4 | 6 | 75 | 10 | 250 | 43 | 18 | 25 | 139 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail | 35 | 31 | 35 | 33 | 31 | 4 | 13 | 4 | 13 | 134 | 130 | 4 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total recoveries | 49 | 39 | 39 | 50 | 35 | 10 | 26 | 14 | 40 | 177 | 148 | 29 | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net charge-offs | 189 | 192 | 184 | 181 | 171 | (3) | (2) | 18 | 11 | 746 | 609 | 137 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for loan and lease losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial | 50 | 3 | 144 | 69 | 86 | 47 | NM | (36) | (42) | 266 | 457 | (191) | (42) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail | 121 | 143 | 79 | 100 | 103 | (22) | (15) | 18 | 17 | 443 | 267 | 176 | 66 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total provision (benefit) for loan and lease losses | 171 | 146 | 223 | 169 | 189 | 25 | 17 | (18) | (10) | 709 | 724 | (15) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses - ending | $2,061 | $2,079 | $2,125 | $2,086 | $2,098 | ($18) | (1 | %) | ($37) | (2 | %) | $2,061 | $2,098 | ($37) | (2 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for unfunded lending commitments - beginning | $207 | $181 | $222 | $220 | $238 | $26 | 14 | % | ($31) | (13 | %) | $220 | $257 | ($37) | (14 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for unfunded lending commitments | (9) | 26 | (41) | 2 | (18) | (35) | NM | 9 | 50 | (22) | (37) | 15 | 41 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for unfunded lending commitments - ending | $198 | $207 | $181 | $222 | $220 | ($9) | (4 | %) | ($22) | (10 | %) | $198 | $220 | ($22) | (10 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total allowance for credit losses - ending | $2,259 | $2,286 | $2,306 | $2,308 | $2,318 | ($27) | (1 | %) | ($59) | (3 | %) | $2,259 | $2,318 | ($59) | (3 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Memo: Total allowance for credit losses by product | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial | $1,295 | $1,351 | $1,429 | $1,425 | $1,425 | ($56) | (4 | %) | ($130) | (9 | %) | $1,295 | $1,425 | ($130) | (9 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail | 964 | 935 | 877 | 883 | 893 | 29 | 3 | 71 | 8 | 964 | 893 | 71 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total allowance for credit losses | $2,259 | $2,286 | $2,306 | $2,308 | $2,318 | ($27) | (1 | %) | ($59) | (3 | %) | $2,259 | $2,318 | ($59) | (3 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
19
CAPITAL AND RATIOS
(dollars in millions)
| AS OF | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DECEMBER 31, 2024 CHANGE | 2024 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dec 31, 2024 | Sept 30, 2024 | June 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sept 30, 2024 | December 31, 2023 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CAPITAL RATIOS AND COMPONENTS (PRELIMINARY) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CET1 capital | $17,900 | $17,941 | $18,086 | $18,090 | $18,358 | ($41) | — | % | ($458) | (2 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tier 1 capital | 20,013 | 20,053 | 20,198 | 20,104 | 20,372 | (40) | — | (359) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total capital | 23,232 | 23,352 | 23,551 | 23,466 | 23,608 | (120) | (1) | (376) | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Risk-weighted assets | 165,699 | 168,552 | 168,393 | 170,125 | 172,601 | (2,853) | (2) | (6,902) | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted average assets1 | 212,555 | 213,274 | 214,574 | 216,001 | 219,591 | (719) | — | (7,036) | (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CET1 capital ratio | 10.8 | % | 10.6 | % | 10.7 | % | 10.6 | % | 10.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tier 1 capital ratio | 12.1 | 11.9 | 12.0 | 11.8 | 11.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total capital ratio | 14.0 | 13.9 | 14.0 | 13.8 | 13.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tier 1 leverage ratio | 9.4 | 9.4 | 9.4 | 9.3 | 9.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TANGIBLE COMMON EQUITY (PERIOD-END) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stockholders' equity | $22,141 | $22,820 | $21,757 | $21,747 | $22,329 | ($679) | (3 | %) | ($188) | (1 | %) | $22,141 | $22,329 | ($188) | (1 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Goodwill | 8,187 | 8,187 | 8,187 | 8,188 | 8,188 | — | — | (1) | — | 8,187 | 8,188 | (1) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Other intangible assets | 146 | 137 | 139 | 148 | 157 | 9 | 7 | (11) | (7) | 146 | 157 | (11) | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Add: Deferred tax liabilities2 | 438 | 435 | 435 | 433 | 433 | 3 | 1 | 5 | 1 | 438 | 433 | 5 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total tangible common equity | $14,246 | $14,931 | $13,866 | $13,844 | $14,417 | ($685) | (5 | %) | ($171) | (1 | %) | $14,246 | $14,417 | ($171) | (1 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TANGIBLE COMMON EQUITY (AVERAGE) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stockholders' equity | $22,009 | $22,380 | $21,427 | $21,700 | $21,209 | ($371) | (2 | %) | $800 | 4 | % | $21,881 | $21,592 | $289 | 1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Goodwill | 8,187 | 8,187 | 8,188 | 8,188 | 8,188 | — | — | (1) | — | 8,187 | 8,184 | 3 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Other intangible assets | 136 | 140 | 144 | 153 | 163 | (4) | (3) | (27) | (17) | 143 | 177 | (34) | (19) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Add: Deferred tax liabilities2 | 436 | 435 | 432 | 433 | 421 | 1 | — | 15 | 4 | 433 | 422 | 11 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total tangible common equity | $14,122 | $14,488 | $13,527 | $13,792 | $13,279 | ($366) | (3 | %) | $843 | 6 | % | $13,984 | $13,653 | $331 | 2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTANGIBLE ASSETS (PERIOD-END) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | $8,187 | $8,187 | $8,187 | $8,188 | $8,188 | $— | — | % | ($1) | — | % | $8,187 | $8,188 | ($1) | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other intangible assets | 146 | 137 | 139 | 148 | 157 | 9 | 7 | (11) | (7) | 146 | 157 | (11) | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total intangible assets | $8,333 | $8,324 | $8,326 | $8,336 | $8,345 | $9 | — | % | ($12) | — | % | $8,333 | $8,345 | ($12) | — | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1Adjusted average assets include quarterly average assets, less deductions for disallowed goodwill and other intangible assets, net of deferred taxes, and the accumulated other comprehensive
income impact related to the adoption of post-retirement benefit plan guidance under GAAP.
income impact related to the adoption of post-retirement benefit plan guidance under GAAP.
2Deferred tax liabilities relate to tax-deductible goodwill and other intangible assets.
20
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(dollars in millions, except per share data)
Non-GAAP Financial Measures
This document contains non-GAAP financial measures denoted as Underlying. Underlying results for any given reporting period exclude certain items that may occur in that period which management does not consider indicative of the Company’s on-going financial performance. We believe these non-GAAP financial measures provide useful information to investors because they are used by our management to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe our Underlying results in any given reporting period reflect our on-going financial performance in that period and, accordingly, are useful to consider in addition to our GAAP financial results. The following tables present reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures.
Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to similar measures used by such companies. We caution investors not to place undue reliance on such non-GAAP financial measures, but to consider them with the most directly comparable GAAP measures. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for our results reported under GAAP.
21
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED (dollars in millions, except per share data)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 Change | 2024 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income (GAAP) | A | $574 | $532 | $553 | $517 | $500 | $42 | 8 | % | $74 | 15 | % | $2,176 | $1,983 | $193 | 10 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | 10 | (2) | 4 | 3 | — | 12 | NM | 10 | 100 | 15 | — | 15 | 100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income, Underlying (non-GAAP) | B | $564 | $534 | $549 | $514 | $500 | $30 | 6 | % | $64 | 13 | % | $2,161 | $1,983 | $178 | 9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue (GAAP) | C | $1,986 | $1,901 | $1,963 | $1,959 | $1,988 | $85 | 4 | % | ($2) | — | % | $7,809 | $8,224 | ($415) | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | 10 | (2) | 4 | 3 | — | 12 | NM | 10 | 100 | 15 | — | 15 | 100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue, Underlying (non-GAAP) | D | $1,976 | $1,903 | $1,959 | $1,956 | $1,988 | $73 | 4 | % | ($12) | (1 | %) | $7,794 | $8,224 | ($430) | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expense, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expense (GAAP) | E | $1,316 | $1,259 | $1,301 | $1,358 | $1,612 | $57 | 5 | % | ($296) | (18 | %) | $5,234 | $5,507 | ($273) | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | 24 | 11 | 36 | 85 | 345 | 13 | 118 | (321) | (93) | 156 | 506 | (350) | (69) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expense, Underlying (non-GAAP) | F | $1,292 | $1,248 | $1,265 | $1,273 | $1,267 | $44 | 4 | % | $25 | 2 | % | $5,078 | $5,001 | $77 | 2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pre-provision profit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue (GAAP) | C | $1,986 | $1,901 | $1,963 | $1,959 | $1,988 | $85 | 4 | % | ($2) | — | % | $7,809 | $8,224 | ($415) | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Noninterest expense (GAAP) | E | 1,316 | 1,259 | 1,301 | 1,358 | 1,612 | 57 | 5 | (296) | (18) | 5,234 | 5,507 | (273) | (5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-provision profit (non-GAAP) | $670 | $642 | $662 | $601 | $376 | $28 | 4 | % | $294 | 78 | % | $2,575 | $2,717 | ($142) | (5 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pre-provision profit, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue, Underlying (non-GAAP) | D | $1,976 | $1,903 | $1,959 | $1,956 | $1,988 | $73 | 4 | % | ($12) | (1 | %) | $7,794 | $8,224 | ($430) | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Noninterest expense, Underlying (non-GAAP) | F | 1,292 | 1,248 | 1,265 | 1,273 | 1,267 | 44 | 4 | 25 | 2 | 5,078 | 5,001 | 77 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pre-provision profit, Underlying (non-GAAP) | $684 | $655 | $694 | $683 | $721 | $29 | 4 | % | ($37) | (5 | %) | $2,716 | $3,223 | ($507) | (16 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income before income tax expense, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income before income tax expense (GAAP) | G | $508 | $470 | $480 | $430 | $205 | $38 | 8 | % | $303 | 148 | % | $1,888 | $2,030 | ($142) | (7 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Income (expense) before income tax expense (benefit) related to notable items | (14) | (13) | (32) | (82) | (345) | (1) | (8) | 331 | 96 | (141) | (506) | 365 | 72 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income before income tax expense, Underlying (non-GAAP) | H | $522 | $483 | $512 | $512 | $550 | $39 | 8 | % | ($28) | (5 | %) | $2,029 | $2,536 | ($507) | (20 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense (GAAP) | I | $107 | $88 | $88 | $96 | $16 | $19 | 22 | % | $91 | NM | $379 | $422 | ($43) | (10 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Income tax expense (benefit) related to notable items | (3) | (3) | (16) | (21) | (108) | — | — | 105 | 97 | (43) | (149) | 106 | 71 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense, Underlying (non-GAAP) | J | $110 | $91 | $104 | $117 | $124 | $19 | 21 | % | ($14) | (11 | %) | $422 | $571 | ($149) | (26 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (GAAP) | K | $401 | $382 | $392 | $334 | $189 | $19 | 5 | % | $212 | 112 | % | $1,509 | $1,608 | ($99) | (6 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Add: Notable items, net of income tax benefit | 11 | 10 | 16 | 61 | 237 | 1 | 10 | (226) | (95) | 98 | 357 | (259) | (73) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income, Underlying (non-GAAP) | L | $412 | $392 | $408 | $395 | $426 | $20 | 5 | % | ($14) | (3 | %) | $1,607 | $1,965 | ($358) | (18 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income available to common stockholders, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income available to common stockholders (GAAP) | M | $367 | $344 | $357 | $304 | $159 | $23 | 7 | % | $208 | 131 | % | $1,372 | $1,491 | ($119) | (8 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Add: Notable items, net of income tax benefit | 11 | 10 | 16 | 61 | 237 | 1 | 10 | (226) | (95) | 98 | 357 | (259) | (73) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income available to common stockholders, Underlying (non-GAAP) | N | $378 | $354 | $373 | $365 | $396 | $24 | 7 | % | ($18) | (5 | %) | $1,470 | $1,848 | ($378) | (20 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
22
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED
(dollars in millions, except per share data)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 Change | 2024 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $/bps | % | $/bps | % | $/bps | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating leverage: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue (GAAP) | C | $1,986 | $1,901 | $1,963 | $1,959 | $1,988 | $85 | 4.56 | % | ($2) | 0.02 | % | $7,809 | $8,224 | ($415) | (5.04 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Noninterest expense (GAAP) | E | 1,316 | 1,259 | 1,301 | 1,358 | 1,612 | 57 | 4.61 | (296) | (18.30) | 5,234 | 5,507 | (273) | (4.95) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating leverage | (0.05 | %) | 18.32 | % | (0.09 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating leverage, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue, Underlying (non-GAAP) | D | $1,976 | $1,903 | $1,959 | $1,956 | $1,988 | $73 | 3.89 | % | ($12) | (0.48 | %) | $7,794 | $8,224 | ($430) | (5.22 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Noninterest expense, Underlying (non-GAAP) | F | 1,292 | 1,248 | 1,265 | 1,273 | 1,267 | 44 | 3.50 | 25 | 2.00 | 5,078 | 5,001 | 77 | 1.54 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating leverage, Underlying (non-GAAP) | 0.39 | % | (2.48 | %) | (6.76 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio and efficiency ratio, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio | E/C | 66.27 | % | 66.23 | % | 66.27 | % | 69.33 | % | 81.13 | % | 4 | bps | (1,486) | bps | 67.03 | % | 66.97 | % | 6 | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio, Underlying (non-GAAP) | F/D | 65.36 | 65.61 | 64.59 | 65.05 | 63.77 | (25) | bps | 159 | bps | 65.15 | 60.81 | 434 | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income as a % of total revenue, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income as a % of total revenue | A/C | 28.90 | % | 27.95 | % | 28.16 | % | 26.41 | % | 25.16 | % | 95 | bps | 374 | bps | 27.86 | % | 24.12 | % | 374 | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income as a % of total revenue, Underlying | B/D | 28.54 | 28.05 | 28.00 | 26.32 | 25.16 | 49 | bps | 338 | bps | 27.73 | 24.12 | 361 | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Effective income tax rate and effective income tax rate, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Effective income tax rate | I/G | 21.04 | % | 18.56 | % | 18.49 | % | 22.28 | % | 7.59 | % | 248 | bps | 1,345 | bps | 20.06 | % | 20.76 | % | (70) | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Effective income tax rate, Underlying (non-GAAP) | J/H | 21.17 | 18.75 | 20.33 | 22.84 | 22.25 | 242 | bps | (108) | bps | 20.80 | 22.48 | (168) | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average common equity and return on average common equity, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average common equity (GAAP) | O | $22,009 | $22,380 | $21,427 | $21,700 | $21,209 | ($371) | (2 | %) | $800 | 4 | % | $21,881 | $21,592 | $289 | 1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average common equity | M/O | 6.64 | % | 6.12 | % | 6.70 | % | 5.63 | % | 2.96 | % | 52 | bps | 368 | bps | 6.27 | % | 6.90 | % | (63) | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average common equity, Underlying (non-GAAP) | N/O | 6.84 | 6.29 | 7.00 | 6.77 | 7.41 | 55 | bps | (57) | bps | 6.72 | 8.56 | (184) | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average tangible common equity and return on average tangible common equity, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average common equity (GAAP) | O | $22,009 | $22,380 | $21,427 | $21,700 | $21,209 | ($371) | (2 | %) | $800 | 4 | % | $21,881 | $21,592 | $289 | 1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Average goodwill (GAAP) | 8,187 | 8,187 | 8,188 | 8,188 | 8,188 | — | — | (1) | — | 8,187 | 8,184 | 3 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Average other intangibles (GAAP) | 136 | 140 | 144 | 153 | 163 | (4) | (3) | (27) | (17) | 143 | 177 | (34) | (19) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 436 | 435 | 432 | 433 | 421 | 1 | — | 15 | 4 | 433 | 422 | 11 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average tangible common equity | P | $14,122 | $14,488 | $13,527 | $13,792 | $13,279 | ($366) | (3 | %) | $843 | 6 | % | $13,984 | $13,653 | $331 | 2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average tangible common equity | M/P | 10.36 | % | 9.45 | % | 10.61 | % | 8.86 | % | 4.72 | % | 91 | bps | 564 | bps | 9.81 | % | 10.92 | % | (111) | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average tangible common equity, Underlying (non-GAAP) | N/P | 10.66 | 9.71 | 11.09 | 10.65 | 11.84 | 95 | bps | (118) | bps | 10.51 | 13.53 | (302) | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total assets and return on average total assets, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average total assets (GAAP) | Q | $217,548 | $218,578 | $219,222 | $220,770 | $223,653 | ($1,030) | — | % | ($6,105) | (3 | %) | $219,024 | $222,221 | ($3,197) | (1 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total assets | K/Q | 0.73 | % | 0.70 | % | 0.72 | % | 0.61 | % | 0.33 | % | 3 | bps | 40 | bps | 0.69 | % | 0.72 | % | (3) | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total assets, Underlying (non-GAAP) | L/Q | 0.75 | 0.71 | 0.75 | 0.72 | 0.76 | 4 | bps | (1) | bps | 0.73 | 0.88 | (15) | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
23
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED
(dollars in millions, except per share data)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 Change | 2024 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $/bps | % | $/bps | % | $/bps | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total tangible assets and return on average total tangible assets, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average total assets (GAAP) | Q | $217,548 | $218,578 | $219,222 | $220,770 | $223,653 | ($1,030) | — | % | ($6,105) | (3 | %) | $219,024 | $222,221 | ($3,197) | (1 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Average goodwill (GAAP) | 8,187 | 8,187 | 8,188 | 8,188 | 8,188 | — | — | (1) | — | 8,187 | 8,184 | 3 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Average other intangibles (GAAP) | 136 | 140 | 144 | 153 | 163 | (4) | (3) | (27) | (17) | 143 | 177 | (34) | (19) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 436 | 435 | 432 | 433 | 421 | 1 | — | 15 | 4 | 433 | 422 | 11 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average tangible assets | R | $209,661 | $210,686 | $211,322 | $212,862 | $215,723 | ($1,025) | — | % | ($6,062) | (3 | %) | $211,127 | $214,282 | ($3,155) | (1 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total tangible assets | K/R | 0.76 | % | 0.72 | % | 0.75 | % | 0.63 | % | 0.35 | % | 4 | bps | 41 | bps | 0.71 | % | 0.75 | % | (4) | bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total tangible assets, Underlying (non-GAAP) | L/R | 0.78 | 0.74 | 0.78 | 0.75 | 0.78 | 4 | bps | — | bps | 0.76 | 0.92 | (16) | bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tangible book value per common share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common shares - at period-end (GAAP) | S | 440,543,381 | 445,216,549 | 452,961,853 | 458,485,032 | 466,418,055 | (4,673,168) | (1 | %) | (25,874,674) | (6 | %) | 440,543,381 | 466,418,055 | (25,874,674) | (6 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common stockholders' equity (GAAP) | $22,141 | $22,820 | $21,757 | $21,747 | $22,329 | ($679) | (3) | ($188) | (1) | $22,141 | $22,329 | ($188) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Goodwill (GAAP) | 8,187 | 8,187 | 8,187 | 8,188 | 8,188 | — | — | (1) | — | 8,187 | 8,188 | (1) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Other intangible assets (GAAP) | 146 | 137 | 139 | 148 | 157 | 9 | 7 | (11) | (7) | 146 | 157 | (11) | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Add: Deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 438 | 435 | 435 | 433 | 433 | 3 | 1 | 5 | 1 | 438 | 433 | 5 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tangible common equity | T | $14,246 | $14,931 | $13,866 | $13,844 | $14,417 | ($685) | (5 | %) | ($171) | (1 | %) | $14,246 | $14,417 | ($171) | (1 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tangible book value per common share | T/S | $32.34 | $33.54 | $30.61 | $30.19 | $30.91 | ($1.20) | (4 | %) | $1.43 | 5 | % | $32.34 | $30.91 | $1.43 | 5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income per average common share - basic and diluted and net income per average common share - basic and diluted, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average common shares outstanding - basic (GAAP) | U | 440,802,738 | 446,561,996 | 454,142,489 | 461,358,681 | 466,234,324 | (5,759,258) | (1 | %) | (25,431,586) | (5 | %) | 450,678,038 | 475,089,384 | (24,411,346) | (5 | %) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average common shares outstanding - diluted (GAAP) | V | 444,836,786 | 449,913,467 | 456,561,022 | 463,797,964 | 468,159,167 | (5,076,681) | (1) | (23,322,381) | (5) | 453,510,245 | 476,693,148 | (23,182,903) | (5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income per average common share - basic (GAAP) | M/U | $0.83 | $0.77 | $0.79 | $0.66 | $0.34 | $0.06 | 8 | $0.49 | 144 | $3.05 | $3.14 | ($0.09) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income per average common share - diluted (GAAP) | M/V | 0.83 | 0.77 | 0.78 | 0.65 | 0.34 | 0.06 | 8 | 0.49 | 144 | 3.03 | 3.13 | (0.10) | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income per average common share - basic, Underlying (non-GAAP) | N/U | 0.86 | 0.79 | 0.82 | 0.79 | 0.85 | 0.07 | 9 | 0.01 | 1 | 3.26 | 3.89 | (0.63) | (16) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income per average common share - diluted, Underlying (non-GAAP) | N/V | 0.85 | 0.79 | 0.82 | 0.79 | 0.85 | 0.06 | 8 | — | — | 3.24 | 3.88 | (0.64) | (16) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividend payout ratio and dividend payout ratio, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends declared and paid per common share | W | $0.42 | $0.42 | $0.42 | $0.42 | $0.42 | $— | — | % | $— | — | % | $1.68 | $1.68 | $— | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividend payout ratio | W/(M/U) | 51 | % | 55 | % | 53 | % | 64 | % | 124 | % | (395) bps | (7,293) bps | 55 | % | 54 | % | 158 bps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dividend payout ratio, Underlying (non-GAAP) | W/(N/U) | 49 | 53 | 51 | 53 | 49 | (400) bps | — bps | 52 | 43 | 900 bps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
24
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED
(dollars in millions, except per share data)
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 Change | 2024 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q24 | 3Q24 | 2Q24 | 1Q24 | 4Q23 | 3Q24 | 4Q23 | 2024 | 2023 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $ | % | $ | % | $/bps | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Card fees, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Card fees (GAAP) | $97 | $93 | $92 | $86 | $70 | $4 | 4 | % | $27 | 39 | % | $368 | $296 | $72 | 24 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | 11 | 6 | 4 | 3 | — | 5 | 83 | 11 | 100 | 24 | — | 24 | 100 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Card fees, Underlying (non-GAAP) | $86 | $87 | $88 | $83 | $70 | ($1) | (1 | %) | $16 | 23 | % | $344 | $296 | $48 | 16 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income (GAAP) | $28 | $24 | $10 | $17 | $20 | $4 | 17 | % | $8 | 40 | % | $79 | $78 | $1 | 1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | (1) | (8) | — | — | — | 7 | 88 | (1) | (100) | (9) | — | (9) | (100) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income, Underlying (non-GAAP) | $29 | $32 | $10 | $17 | $20 | ($3) | (9) | $9 | 45 | % | $88 | $78 | $10 | 13 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits (GAAP) | $674 | $647 | $645 | $691 | $667 | $27 | 4 | % | $7 | 1 | % | $2,657 | $2,599 | $58 | 2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | 17 | 4 | 8 | 17 | 32 | 13 | NM | (15) | (47) | 46 | 67 | (21) | (31) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits, Underlying (non-GAAP) | $657 | $643 | $637 | $674 | $635 | $14 | 2 | % | $22 | 3 | % | $2,611 | $2,532 | $79 | 3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equipment and software, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment and software(GAAP) | $193 | $194 | $190 | $192 | $215 | ($1) | (1 | %) | ($22) | (10 | %) | $769 | $756 | $13 | 2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | 3 | 2 | 4 | 8 | 37 | 1 | 50 | (34) | (92) | 17 | 51 | (34) | (67) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equipment and software, Underlying (non-GAAP) | $190 | $192 | $186 | $184 | $178 | ($2) | (1 | %) | $12 | 7 | % | $752 | $705 | $47 | 7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outside services, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outside services (GAAP) | $170 | $146 | $165 | $158 | $174 | $24 | 16 | % | ($4) | (2 | %) | $639 | $687 | ($48) | (7 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | 4 | 2 | 10 | 12 | 13 | 2 | 100 | (9) | (69) | 28 | 68 | (40) | (59) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Outside services, Underlying (non-GAAP) | $166 | $144 | $155 | $146 | $161 | $22 | 15 | % | $5 | 3 | % | $611 | $619 | ($8) | (1 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Occupancy, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Occupancy (GAAP) | $112 | $108 | $113 | $114 | $125 | $4 | 4 | % | ($13) | (10 | %) | $447 | $492 | ($45) | (9 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | 5 | 1 | 6 | 7 | 20 | 4 | NM | (15) | (75) | 19 | 70 | (51) | (73) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Occupancy, Underlying (non-GAAP) | $107 | $107 | $107 | $107 | $105 | $— | — | % | $2 | 2 | % | $428 | $422 | $6 | 1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other operating expense, Underlying: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other operating expense (GAAP) | $167 | $164 | $188 | $203 | $431 | $3 | 2 | % | ($264) | (61 | %) | $722 | $973 | ($251) | (26 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Notable items | (5) | 2 | 8 | 41 | 243 | (7) | NM | (248) | (102) | 46 | 250 | (204) | (82) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other operating expense, Underlying (non-GAAP) | $172 | $162 | $180 | $162 | $188 | $10 | 6 | % | ($16) | (9 | %) | $676 | $723 | ($47) | (7 | %) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
25
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS
(dollars in millions)
| FOURTH QUARTER 2024 | THIRD QUARTER 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer Banking | Commercial Banking | Non-Core | Other | Consolidated | Consumer Banking | Commercial Banking | Non-Core | Other | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) available to common stockholders: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | A | $358 | $224 | ($45) | ($136) | $401 | $327 | $231 | ($51) | ($125) | $382 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Preferred stock dividends | — | — | — | 34 | 34 | — | — | — | 38 | 38 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) available to common stockholders | B | $358 | $224 | ($45) | ($170) | $367 | $327 | $231 | ($51) | ($163) | $344 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total tangible assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average total assets (GAAP) | $76,608 | $66,787 | $7,428 | $66,725 | $217,548 | $75,392 | $68,092 | $8,389 | $66,705 | $218,578 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Average goodwill (GAAP) | 542 | 769 | — | 6,876 | 8,187 | 542 | 769 | — | 6,876 | 8,187 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average other intangibles (GAAP) | 77 | 27 | — | 32 | 136 | 83 | 29 | — | 28 | 140 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 28 | 8 | — | 400 | 436 | 27 | 9 | — | 399 | 435 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average tangible assets | C | $76,017 | $65,999 | $7,428 | $60,217 | $209,661 | $74,794 | $67,303 | $8,389 | $60,200 | $210,686 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total tangible assets | A/C | 1.87 | % | 1.35 | % | (2.38) | % | NM | 0.76 | % | 1.74 | % | 1.37 | % | (2.40) | % | NM | 0.72 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expense (GAAP) | D | $944 | $313 | $24 | $35 | $1,316 | $916 | $300 | $23 | $20 | $1,259 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income (GAAP) | 1,196 | 464 | (21) | (227) | 1,412 | 1,156 | 478 | (28) | (237) | 1,369 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income (GAAP) | 311 | 232 | — | 31 | 574 | 285 | 207 | — | 40 | 532 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue (GAAP) | E | $1,507 | $696 | ($21) | ($196) | $1,986 | $1,441 | $685 | ($28) | ($197) | $1,901 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio | D/E | 62.60 | % | 44.78 | % | NM | NM | 66.27 | % | 63.53 | % | 43.84 | % | NM | NM | 66.23 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| SECOND QUARTER 2024 | FIRST QUARTER 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer Banking | Commercial Banking | Non-Core | Other | Consolidated | Consumer Banking | Commercial Banking | Non-Core | Other | Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) available to common stockholders: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | A | $296 | $259 | ($50) | ($113) | $392 | $272 | $259 | ($60) | ($137) | $334 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Preferred stock dividends | — | — | — | 35 | 35 | — | — | — | 30 | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) available to common stockholders | B | $296 | $259 | ($50) | ($148) | $357 | $272 | $259 | ($60) | ($167) | $304 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total tangible assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average total assets (GAAP) | $74,295 | $68,958 | $9,418 | $66,551 | $219,222 | $73,833 | $70,100 | $10,554 | $66,283 | $220,770 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Average goodwill (GAAP) | 542 | 770 | — | 6,876 | 8,188 | 542 | 770 | — | 6,876 | 8,188 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average other intangibles (GAAP) | 87 | 31 | — | 26 | 144 | 92 | 33 | — | 28 | 153 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 27 | 9 | — | 396 | 432 | 26 | 10 | — | 397 | 433 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average tangible assets | C | $73,693 | $68,166 | $9,418 | $60,045 | $211,322 | $73,225 | $69,307 | $10,554 | $59,776 | $212,862 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total tangible assets | A/C | 1.61 | % | 1.52 | % | (2.14) | % | NM | 0.75 | % | 1.49 | % | 1.50 | % | (2.30) | % | NM | 0.63 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expense (GAAP) | D | $915 | $311 | $26 | $49 | $1,301 | $903 | $317 | $25 | $113 | $1,358 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income (GAAP) | 1,120 | 494 | (31) | (173) | 1,410 | 1,093 | 514 | (37) | (128) | 1,442 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income (GAAP) | 277 | 242 | — | 34 | 553 | 258 | 227 | — | 32 | 517 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue (GAAP) | E | $1,397 | $736 | ($31) | ($139) | $1,963 | $1,351 | $741 | ($37) | ($96) | $1,959 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio | D/E | 65.49 | % | 42.28 | % | NM | NM | 66.27 | % | 66.87 | % | 42.80 | % | NM | NM | 69.33 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
26
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS, CONTINUED
(dollars in millions)
| FOURTH QUARTER 2023 | |||||||||||||||||||||||||||||||||||
| Consumer Banking | Commercial Banking | Non-Core | Other | Consolidated | |||||||||||||||||||||||||||||||
| Net income (loss) available to common stockholders: | |||||||||||||||||||||||||||||||||||
| Net income (loss) | A | $269 | $269 | ($72) | ($277) | $189 | |||||||||||||||||||||||||||||
| Less: Preferred stock dividends | — | — | — | 30 | 30 | ||||||||||||||||||||||||||||||
| Net income (loss) available to common stockholders | B | $269 | $269 | ($72) | ($307) | $159 | |||||||||||||||||||||||||||||
| Return on average total tangible assets: | |||||||||||||||||||||||||||||||||||
| Average total assets (GAAP) | $73,334 | $72,758 | $11,776 | $65,785 | $223,653 | ||||||||||||||||||||||||||||||
| Less: Average goodwill (GAAP) | 542 | 770 | — | 6,876 | 8,188 | ||||||||||||||||||||||||||||||
| Average other intangibles (GAAP) | 98 | 35 | — | 30 | 163 | ||||||||||||||||||||||||||||||
| Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 26 | 10 | — | 385 | 421 | ||||||||||||||||||||||||||||||
| Average tangible assets | C | $72,720 | $71,963 | $11,776 | $59,264 | $215,723 | |||||||||||||||||||||||||||||
| Return on average total tangible assets | A/C | 1.47 | % | 1.48 | % | (2.42) | % | NM | 0.35 | % | |||||||||||||||||||||||||
| Efficiency ratio: | |||||||||||||||||||||||||||||||||||
| Noninterest expense (GAAP) | D | $905 | $324 | $28 | $355 | $1,612 | |||||||||||||||||||||||||||||
| Net interest income (GAAP) | 1,086 | 551 | (45) | (104) | 1,488 | ||||||||||||||||||||||||||||||
| Noninterest income (GAAP) | 265 | 196 | — | 39 | 500 | ||||||||||||||||||||||||||||||
| Total revenue (GAAP) | E | $1,351 | $747 | ($45) | ($65) | $1,988 | |||||||||||||||||||||||||||||
| Efficiency ratio | D/E | 67.08 | % | 43.44 | % | NM | NM | 81.13 | % | ||||||||||||||||||||||||||
27
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS, CONTINUED
(dollars in millions)
| FULL YEAR | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Consumer Banking | Commercial Banking | Non-Core | Other | Consolidated | Consumer Banking | Commercial Banking | Non-Core | Other | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) available to common stockholders: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | A | $1,253 | $973 | ($206) | ($511) | $1,509 | $1,059 | $1,153 | ($244) | ($360) | $1,608 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Preferred stock dividends | — | — | — | 137 | 137 | — | — | — | 117 | 117 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) available to common stockholders | B | $1,253 | $973 | ($206) | ($648) | $1,372 | $1,059 | $1,153 | ($244) | ($477) | $1,491 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total tangible assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average total assets (GAAP) | $75,037 | $68,478 | $8,942 | $66,567 | $219,024 | $72,693 | $76,028 | $13,745 | $59,755 | $222,221 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: Average goodwill (GAAP) | 542 | 770 | — | 6,875 | 8,187 | 540 | 767 | — | 6,877 | 8,184 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average other intangibles (GAAP) | 85 | 30 | — | 28 | 143 | 106 | 39 | — | 32 | 177 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP) | 27 | 9 | — | 397 | 433 | 24 | 11 | — | 387 | 422 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average tangible assets | C | $74,437 | $67,687 | $8,942 | $60,061 | $211,127 | $72,071 | $75,233 | $13,745 | $53,233 | $214,282 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average total tangible assets | A/C | 1.68 | % | 1.44 | % | (2.30) | % | NM | 0.71 | % | 1.47 | % | 1.53 | % | (1.78) | % | NM | 0.75 | % | |||||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest expense (GAAP) | D | $3,678 | $1,241 | $98 | $217 | $5,234 | $3,542 | $1,295 | $123 | $547 | $5,507 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income (GAAP) | 4,565 | 1,950 | (117) | (765) | 5,633 | 4,187 | 2,292 | (129) | (109) | 6,241 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest income (GAAP) | 1,131 | 908 | — | 137 | 2,176 | 1,067 | 784 | — | 132 | 1,983 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total revenue (GAAP) | E | $5,696 | $2,858 | ($117) | ($628) | $7,809 | $5,254 | $3,076 | ($129) | $23 | $8,224 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio | D/E | 64.56 | % | 43.40 | % | NM | NM | 67.03 | % | 67.42 | % | 42.10 | % | NM | NM | 66.97 | % | |||||||||||||||||||||||||||||||||||||||||||||
28