Financial Performance Highlights - Net income available to common stockholders was $402 million[8], an 18% increase quarter-over-quarter and an 13% increase year-over-year[8] - Diluted earnings per share (EPS) reached $0.92[8], a 19% increase quarter-over-quarter and an 18% increase year-over-year[8] - Total revenue was $2037 million[8], a 5% increase quarter-over-quarter and a 4% increase year-over-year[8] - The efficiency ratio improved to 64.8%[8] - Return on tangible common equity (ROTCE) was 11.0%[8] Key Business Segment Performance - Private Bank contributed $0.06 to EPS[11], up $0.02 quarter-over-quarter[11], and is expected to deliver a ~20 to 24% return on equity for FY2025[11] - Net interest income (NII) was $1437 million[8], up 3% quarter-over-quarter and 2% year-over-year[8] - Noninterest income was $600 million[8], up 10% quarter-over-quarter and 8% year-over-year[8] Balance Sheet and Capital Management - Average deposits increased by 1% quarter-over-quarter to $174.1 billion[8] - The CET1 ratio remained strong at 10.6%[11] - The company repurchased $200 million of common stock at a weighted-average price of $39.00[45]

[Consolidated Financial Highlights](index=3&type=section&id=Consolidated%20Financial%20Highlights) This section summarizes key financial performance indicators, including operating data, per-share metrics, and capital ratios [Selected Operating Data](index=3&type=section&id=Selected%20Operating%20Data) The company reported strong 2Q25 financial performance, with total revenue increasing 5% QoQ and net income growing 17% QoQ | Metric | 2Q25 ($ Millions) | 1Q25 ($ Millions) | 2Q24 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :----------------------- | :---------------- | :---------------- | :---------------- | :------------- | :------------- | :------------- | :------------- | | Total revenue | $2,037 | $1,935 | $1,963 | $102 | 5% | $74 | 4% | | Noninterest expense | 1,319 | 1,314 | 1,301 | 5 | — | 18 | 1% | | Pre-provision profit | 718 | 621 | 662 | 97 | 16% | 56 | 8% | | Provision for credit losses | 164 | 153 | 182 | 11 | 7% | (18) | (10%) | | NET INCOME | 436 | 373 | 392 | 63 | 17% | 44 | 11% | - For the six months ended June 30, 2025, total revenue increased by **1%** to **$3,972 million**, and net income grew by **11%** to **$809 million** compared to the same period in 2024[4](index=4&type=chunk) [Per Common Share Data](index=3&type=section&id=Per%20Common%20Share%20Data) Diluted earnings per common share significantly increased QoQ and YoY, alongside healthy growth in book and tangible book values | Metric | 2Q25 | 1Q25 | 2Q24 | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :-------------------------- | :----- | :----- | :----- | :------------- | :------------- | :------------- | :------------- | | Diluted earnings | $0.92 | $0.77 | $0.78 | $0.15 | 19% | $0.14 | 18% | | Book value per common share | 53.43 | 51.99 | 48.03 | 1.44 | 3% | 5.40 | 11% | | Tangible book value per common share | 35.23 | 33.97 | 30.61 | 1.26 | 4% | 4.62 | 15% | | Cash dividends declared and paid per common share | 0.42 | 0.42 | 0.42 | — | — | — | — | - The dividend payout ratio decreased to **45%** in 2Q25 from **54%** in 1Q25 and **53%** in 2Q24, indicating improved earnings coverage for dividends[4](index=4&type=chunk) [Common Shares Outstanding](index=3&type=section&id=Common%20Shares%20Outstanding) Common shares outstanding decreased QoQ and YoY, positively impacting per-share metrics | Metric | 2Q25 | 1Q25 | 2Q24 | QoQ Change | QoQ Change (%) | YoY Change | YoY Change (%) | | :-------------------------- | :----------- | :----------- | :----------- | :----------- | :------------- | :----------- | :------------- | | Average Basic Shares | 433,640,210 | 438,320,757 | 454,142,489 | (4,680,547) | (1%) | (20,502,279) | (5%) | | Average Diluted Shares | 436,539,774 | 442,200,180 | 456,561,022 | (5,660,406) | (1%) | (20,021,248) | (4%) | | Common shares at period-end | 432,768,811 | 437,668,127 | 452,961,853 | (4,899,316) | (1%) | (20,193,042) | (4%) | [Financial Ratios](index=4&type=section&id=Financial%20Ratios) Key financial ratios improved in 2Q25, with increased net interest margin and decreased efficiency ratio, indicating better profitability | Metric | 2Q25 | 1Q25 | 2Q24 | QoQ Change (bps) | YoY Change (bps) | | :--------------------------------- | :----- | :----- | :----- | :--------------- | :--------------- | | Net interest margin (FTE) | 2.95% | 2.90% | 2.87% | 5 | 8 | | Return on average common equity | 7.18% | 6.21% | 6.70% | 97 | 48 | | Return on average tangible common equity | 11.05% | 9.64% | 10.61% | 141 | 44 | | Return on average total assets | 0.80% | 0.70% | 0.72% | 10 | 8 | | Efficiency ratio | 64.76 | 67.91 | 66.27 | (315) | (151) | | Noninterest income as a % of total revenue | 29.41 | 28.14 | 28.16 | 127 | 125 | - The effective income tax rate increased to **21.37%** in 2Q25 from **20.26%** in 1Q25 and **18.49%** in 2Q24[5](index=5&type=chunk) [Capital Ratios - Period-End (Preliminary)](index=4&type=section&id=Capital%20Ratios%20-%20Period-End%20%28Preliminary%29) Capital ratios remained stable or slightly improved, maintaining a strong capital position with CET1 ratio at 10.6% | Metric | 2Q25 | 1Q25 | 2Q24 | | :-------------------- | :----- | :----- | :----- | | CET1 capital ratio | 10.6% | 10.6% | 10.7% | | Tier 1 capital ratio | 11.9 | 11.9 | 12.0 | | Total capital ratio | 13.8 | 13.9 | 14.0 | | Tier 1 leverage ratio | 9.4 | 9.4 | 9.4 | | Common equity ratio | 10.6 | 10.3 | 9.9 | | Tangible common equity ratio | 7.2 | 7.0 | 6.5 | [Selected Balance Sheet Data](index=4&type=section&id=Selected%20Balance%20Sheet%20Data) Loan-to-deposit ratio increased QoQ but decreased YoY, while full-time equivalent colleagues increased | Metric | 2Q25 | 1Q25 | 2Q24 | QoQ Change (bps) | YoY Change (bps) | | :--------------------------------- | :----- | :----- | :----- | :--------------- | :--------------- | | Loan-to-deposit ratio (period-end) | 79.56% | 77.51% | 80.43% | 205 | (87) | | Loan-to-deposit ratio (average) | 79.72 | 80.89 | 82.38 | (117) | (266) | | Full-time equivalent colleagues (period-end) | 17,677 | 17,315 | 17,510 | 362 | 167 | [Consolidated Statements of Operations (unaudited)](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20%28unaudited%29) This section details the company's consolidated statements of operations, focusing on interest and noninterest income and expenses [Interest Income and Expense](index=5&type=section&id=Interest%20Income%20and%20Expense) Total interest income increased QoQ but decreased YoY, while net interest income slightly increased QoQ and decreased YoY | Metric | 2Q25 ($ Millions) | 1Q25 ($ Millions) | 2Q24 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------------- | :------------- | :------------- | :------------- | :------------- | | Total interest income | $2,407 | $2,352 | $2,575 | $55 | 2% | ($168) | (7%) | | Interest and fees on loans and leases | 1,851 | 1,829 | 2,011 | 22 | 1% | (160) | (8%) | | Total interest expense | 970 | 961 | 1,165 | 9 | 1% | (195) | (17%) | | Deposits interest expense | 802 | 795 | 965 | 7 | 1% | (163) | (17%) | | Net interest income | 1,437 | 1,391 | 1,410 | 46 | 3% | 27 | 2% | - For the six months ended June 30, 2025, total interest income decreased by **8%** and total interest expense decreased by **17%** compared to 2024, resulting in a **1%** decrease in net interest income[6](index=6&type=chunk) [Noninterest Income and Expense](index=5&type=section&id=Noninterest%20Income%20and%20Expense) Noninterest income grew strongly QoQ and YoY, driven by mortgage banking fees, while noninterest expense remained stable | Metric | 2Q25 ($ Millions) | 1Q25 ($ Millions) | 2Q24 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------------- | :------------- | :------------- | :------------- | :------------- | | Total noninterest income | $600 | $544 | $553 | $56 | 10% | $47 | 8% | | Mortgage banking fees | 73 | 59 | 54 | 14 | 24% | 19 | 35% | | Other income | 42 | 22 | 10 | 20 | 91% | 32 | NM | | Total noninterest expense | 1,319 | 1,314 | 1,301 | 5 | — | 18 | 1% | | Salaries and employee benefits | 681 | 696 | 645 | (15) | (2%) | 36 | 6% | - For the six months ended June 30, 2025, total noninterest income increased by **7%** to **$1,144 million**, while total noninterest expense decreased by **1%** to **$2,633 million** compared to 2024[6](index=6&type=chunk) [Consolidated Balance Sheets (unaudited)](index=6&type=section&id=Consolidated%20Balance%20Sheets%20%28unaudited%29) This section presents the company's consolidated balance sheets, detailing assets, liabilities, and stockholders' equity [Assets](index=6&type=section&id=Assets) Total assets decreased slightly QoQ and YoY, with loans and leases showing modest QoQ growth but a YoY decline | Metric | June 30, 2025 ($ Millions) | Mar 31, 2025 ($ Millions) | June 30, 2024 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :--------------------------------- | :------------------------- | :------------------------- | :------------------------- | :------------- | :------------- | :------------- | :------------- | | TOTAL ASSETS | $218,310 | $220,148 | $219,938 | ($1,838) | (1%) | ($1,628) | (1%) | | Loans and leases | 139,304 | 137,635 | 141,842 | 1,669 | 1% | (2,538) | (2%) | | Loans held for sale | 2,093 | 2,820 | 683 | (727) | (26%) | 1,410 | 206% | | Debt securities available for sale | 34,658 | 34,208 | 31,938 | 450 | 1% | 2,720 | 9% | [Liabilities and Stockholders' Equity](index=6&type=section&id=Liabilities%20and%20Stockholders%27%20Equity) Total deposits decreased QoQ and YoY, while stockholders' equity increased, driven by retained earnings and comprehensive income | Metric | June 30, 2025 ($ Millions) | Mar 31, 2025 ($ Millions) | June 30, 2024 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :--------------------------------- | :------------------------- | :------------------------- | :------------------------- | :------------- | :------------- | :------------- | :------------- | | Total deposits | $175,086 | $177,576 | $176,352 | ($2,490) | (1%) | ($1,266) | (1%) | | Noninterest-bearing deposits | 38,001 | 37,556 | 36,927 | 445 | 1% | 1,074 | 3% | | Interest-bearing deposits | 137,085 | 140,020 | 139,425 | (2,935) | (2%) | (2,340) | (2%) | | Total long-term borrowed funds | 12,526 | 12,267 | 13,082 | 259 | 2% | (556) | (4%) | | TOTAL LIABILITIES | 193,076 | 195,282 | 196,069 | (2,206) | (1%) | (2,993) | (2%) | | TOTAL STOCKHOLDERS' EQUITY | 25,234 | 24,866 | 23,869 | 368 | 1% | 1,365 | 6% | | Retained earnings | 10,783 | 10,566 | 10,079 | 217 | 2% | 704 | 7% | [Loans and Deposits](index=7&type=section&id=Loans%20and%20Deposits) This section provides a detailed breakdown of the company's loan and deposit portfolios by category [Loans and Leases Breakdown](index=7&type=section&id=Loans%20and%20Leases%20Breakdown) Total loans and leases increased QoQ but decreased YoY, with commercial growth offsetting retail declines | Loan Category | June 30, 2025 ($ Millions) | Mar 31, 2025 ($ Millions) | June 30, 2024 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :---------------------- | :------------------------- | :------------------------- | :------------------------- | :------------- | :------------- | :------------- | :------------- | | Commercial and industrial | $45,412 | $43,781 | $43,623 | $1,631 | 4% | $1,789 | 4% | | Commercial real estate | 26,230 | 26,727 | 28,311 | (497) | (2%) | (2,081) | (7%) | | Total commercial | 71,642 | 70,508 | 71,934 | 1,134 | 2% | (292) | — | | Residential mortgages | 33,823 | 33,114 | 31,890 | 709 | 2% | 1,933 | 6% | | Home equity | 17,711 | 16,853 | 15,534 | 858 | 5% | 2,177 | 14% | | Automobile | 3,407 | 4,044 | 6,383 | (637) | (16%) | (2,976) | (47%) | | Education | 8,550 | 8,779 | 11,265 | (229) | (3%) | (2,715) | (24%) | | Total retail | 67,662 | 67,127 | 69,908 | 535 | 1% | (2,246) | (3%) | | Total loans and leases | $139,304 | $137,635 | $141,842 | $1,669 | 1% | ($2,538) | (2%) | [Deposits Breakdown](index=7&type=section&id=Deposits%20Breakdown) Total deposits decreased QoQ and YoY, with noninterest-bearing demand deposits increasing while interest-bearing deposits declined | Deposit Category | June 30, 2025 ($ Millions) | Mar 31, 2025 ($ Millions) | June 30, 2024 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :----------------------- | :------------------------- | :------------------------- | :------------------------- | :------------- | :------------- | :------------- | :------------- | | Noninterest-bearing demand | $38,001 | $37,556 | $36,927 | $445 | 1% | $1,074 | 3% | | Checking with interest | 34,918 | 34,456 | 34,421 | 462 | 1% | 497 | 1% | | Savings | 25,400 | 25,765 | 27,240 | (365) | (1%) | (1,840) | (7%) | | Money market | 55,638 | 55,996 | 52,599 | (358) | (1%) | 3,039 | 6% | | Time | 21,129 | 23,803 | 25,165 | (2,674) | (11%) | (4,036) | (16%) | | Total deposits | $175,086 | $177,576 | $176,352 | ($2,490) | (1%) | ($1,266) | (1%) | [Average Balance Sheets, Annualized Yields and Rates](index=8&type=section&id=Average%20Balance%20Sheets%2C%20Annualized%20Yields%20and%20Rates) This section analyzes average balance sheet components, annualized yields, and rates for interest-earning assets and liabilities [Interest-Earning Assets](index=8&type=section&id=Interest-Earning%20Assets) Average interest-earning assets increased QoQ but decreased YoY, with yields slightly up QoQ but down YoY | Metric | 2Q25 ($ Millions) | 1Q25 ($ Millions) | 2Q24 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------------- | :------------- | :------------- | :------------- | :------------- | | Total interest-earning assets | $196,318 | $195,058 | $198,465 | $1,260 | 1% | ($2,147) | (1%) | | Total loans and leases | 138,809 | 139,710 | 143,067 | (901) | (1%) | (4,258) | (3%) | | Yield on total interest-earning assets | 4.89% | 4.84% | 5.17% | 5 bps | | (28) bps | | | Yield on total loans and leases | 5.31% | 5.26% | 5.60% | 5 bps | | (29) bps | | - For the six months ended June 30, 2025, average total interest-earning assets decreased by **2%** and the yield decreased by **32 bps** compared to 2024[11](index=11&type=chunk) [Interest-Bearing Liabilities](index=8&type=section&id=Interest-Bearing%20Liabilities) Average interest-bearing liabilities increased QoQ but decreased YoY, with rates paid slightly down QoQ and significantly down YoY | Metric | 2Q25 ($ Millions) | 1Q25 ($ Millions) | 2Q24 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------------- | :------------- | :------------- | :------------- | :------------- | | Total interest-bearing liabilities | $150,202 | $149,494 | $152,882 | $708 | — | ($2,680) | (2%) | | Total interest-bearing deposits | 136,778 | 136,162 | 137,465 | 616 | — | (687) | — | | Rate on total interest-bearing liabilities | 2.59% | 2.60% | 3.06% | (1) bps | | (47) bps | | | Rate on total interest-bearing deposits | 2.35% | 2.37% | 2.82% | (2) bps | | (47) bps | | - For the six months ended June 30, 2025, average total interest-bearing liabilities decreased by **2%** and the rate decreased by **47 bps** compared to 2024[11](index=11&type=chunk) [Net Interest Margin](index=8&type=section&id=Net%20Interest%20Margin) Net interest margin (FTE) improved QoQ and YoY, reaching 2.95% in 2Q25, reflecting enhanced profitability | Metric | 2Q25 | 1Q25 | 2Q24 | QoQ Change (bps) | YoY Change (bps) | | :-------------------------- | :----- | :----- | :----- | :--------------- | :--------------- | | Net interest margin (FTE) | 2.95% | 2.90% | 2.87% | 5 | 8 | | Net interest income (FTE) | $1,441 | $1,395 | $1,415 | $46 | $26 | - For the six months ended June 30, 2025, net interest margin (FTE) increased by **3 bps** to **2.92%** compared to 2024, despite a slight decrease in net interest income (FTE)[11](index=11&type=chunk) [Mortgage Banking Fees](index=10&type=section&id=Mortgage%20Banking%20Fees) This section analyzes the company's mortgage banking fees, including production revenue and MSR valuation changes [Mortgage Banking Fees Summary](index=10&type=section&id=Mortgage%20Banking%20Fees%20Summary) Total mortgage banking fees significantly increased QoQ and YoY, driven by MSR valuation changes and production revenue growth | Metric | 2Q25 ($ Millions) | 1Q25 ($ Millions) | 2Q24 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------------- | :------------- | :------------- | :------------- | :------------- | | Total mortgage banking fees | $73 | $59 | $54 | $14 | 24% | $19 | 35% | | Production revenue | 19 | 15 | 14 | 4 | 27% | 5 | 36% | | Mortgage servicing revenue | 28 | 32 | 35 | (4) | (13%) | (7) | (20%) | | MSR valuation changes, net of hedge impact | 26 | 12 | 5 | 14 | 117% | 21 | NM | - For the six months ended June 30, 2025, total mortgage banking fees increased by **28%** to **$132 million** compared to 2024, largely due to MSR valuation changes[12](index=12&type=chunk) [Residential Real Estate Originations](index=10&type=section&id=Residential%20Real%20Estate%20Originations) Total residential real estate originations surged QoQ and YoY, with strong growth across retail, third-party, and investment channels | Metric | 2Q25 ($ Millions) | 1Q25 ($ Millions) | 2Q24 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------------- | :------------- | :------------- | :------------- | :------------- | | Total originations | $4,105 | $2,918 | $2,907 | $1,187 | 41% | $1,198 | 41% | | Retail originations | 2,189 | 1,444 | 1,584 | 745 | 52% | 605 | 38% | | Third Party originations | 1,916 | 1,474 | 1,323 | 442 | 30% | 593 | 45% | | Originated for sale | 2,486 | 1,916 | 1,872 | 570 | 30% | 614 | 33% | | Originated for investment | 1,619 | 1,002 | 1,035 | 617 | 62% | 584 | 56% | - For the six months ended June 30, 2025, total residential real estate originations increased by **45%** to **$7,023 million** compared to 2024[12](index=12&type=chunk) [Segment Financial Highlights](index=11&type=section&id=Segment%20Financial%20Highlights) This section provides financial highlights for the company's key operating segments: Consumer Banking, Commercial Banking, Non-Core, and Other [Consumer Banking](index=11&type=section&id=CONSUMER%20BANKING) Consumer Banking reported strong growth in total revenue and net income, driven by increased net interest and noninterest income | Metric | 2Q25 ($ Millions) | 1Q25 ($ Millions) | 2Q24 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------------- | :------------- | :------------- | :------------- | :------------- | | Total revenue | $1,547 | $1,490 | $1,397 | $57 | 4% | $150 | 11% | | Net income | 376 | 336 | 296 | 40 | 12% | 80 | 27% | | Net interest income | 1,218 | 1,193 | 1,120 | 25 | 2% | 98 | 9% | | Noninterest income | 329 | 297 | 277 | 32 | 11% | 52 | 19% | | Efficiency ratio | 62.24 | 64.06 | 65.49 | (182) bps | | (325) bps | | | Average total loans and leases | 72,402 | 71,054 | 67,960 | 1,348 | 2% | 4,442 | 7% | | Average deposits | 127,271 | 125,728 | 120,478 | 1,543 | 1% | 6,793 | 6% | - For the six months ended June 30, 2025, Consumer Banking's total revenue increased by **11%** to **$3,037 million** and net income increased by **25%** to **$712 million** compared to 2024[13](index=13&type=chunk) [Commercial Banking](index=12&type=section&id=COMMERCIAL%20BANKING) Commercial Banking saw YoY revenue and net income decreases due to lower net interest income, but net income improved QoQ | Metric | 2Q25 ($ Millions) | 1Q25 ($ Millions) | 2Q24 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------------- | :------------- | :------------- | :------------- | :------------- | | Total revenue | $671 | $656 | $736 | $15 | 2% | ($65) | (9%) | | Net income | 206 | 196 | 259 | 10 | 5% | (53) | (20%) | | Net interest income | 439 | 441 | 494 | (2) | — | (55) | (11%) | | Noninterest income | 232 | 215 | 242 | 17 | 8% | (10) | (4%) | | Efficiency ratio | 47.47 | 49.77 | 42.28 | (230) bps | | 519 bps | | | Average total loans and leases | 63,057 | 62,437 | 65,997 | 620 | 1% | (2,940) | (4%) | | Average deposits | 42,481 | 42,178 | 44,203 | 303 | 1% | (1,722) | (4%) | - For the six months ended June 30, 2025, Commercial Banking's total revenue decreased by **10%** to **$1,327 million** and net income decreased by **22%** to **$402 million** compared to 2024[15](index=15&type=chunk) [Non-Core](index=13&type=section&id=NON-CORE) The Non-Core segment significantly improved net income (loss) QoQ and YoY, reducing its net loss, with improved net interest income | Metric | 2Q25 ($ Millions) | 1Q25 ($ Millions) | 2Q24 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------------- | :------------- | :------------- | :------------- | :------------- | | Total revenue | ($2) | ($15) | ($31) | $13 | 87% | $29 | 94% | | Net income (loss) | ($14) | ($51) | ($50) | $37 | 73% | $36 | 72% | | Net interest income | ($5) | ($15) | ($31) | $10 | 67% | $26 | 84% | | Average total assets | $5,216 | $6,536 | $9,418 | ($1,320) | (20%) | ($4,202) | (45%) | | Net interest margin | (0.43)% | (0.90)% | (1.36)% | 47 bps | | 93 bps | | - For the six months ended June 30, 2025, the Non-Core segment's net income (loss) improved by **41%** to **($65) million** compared to **($110) million** in 2024[16](index=16&type=chunk) [Other](index=14&type=section&id=OTHER) The 'Other' segment reported a larger net loss QoQ and YoY, primarily due to increased negative net interest income, despite decreased noninterest expense | Metric | 2Q25 ($ Millions) | 1Q25 ($ Millions) | 2Q24 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------------- | :------------- | :------------- | :------------- | :------------- | | Total revenue | ($179) | ($196) | ($139) | $17 | 9% | ($40) | (29%) | | Net income (loss) | ($132) | ($108) | ($113) | ($24) | (22%) | ($19) | (17%) | | Net interest income | ($215) | ($228) | ($173) | $13 | 6% | ($42) | (24%) | | Noninterest expense | 24 | 17 | 49 | 7 | 41% | (25) | (51%) | | Provision for credit losses | (3) | (47) | (2) | 44 | 94% | (1) | (50%) | - For the six months ended June 30, 2025, the 'Other' segment's net income (loss) improved by **4%** to **($240) million** compared to **($250) million** in 2024, despite a significant increase in negative net interest income[17](index=17&type=chunk) [Credit-Related Information](index=15&type=section&id=Credit-Related%20Information) This section provides an overview of the company's credit quality, including nonaccrual loans, past due loans, and charge-offs [Nonaccrual Loans and Leases](index=15&type=section&id=Nonaccrual%20Loans%20and%20Leases) Total nonaccrual loans and leases decreased QoQ but remained stable YoY, with commercial declines offset by residential mortgage increases | Metric | June 30, 2025 ($ Millions) | Mar 31, 2025 ($ Millions) | June 30, 2024 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :-------------------------- | :------------------------- | :------------------------- | :------------------------- | :------------- | :------------- | :------------- | :------------- | | Total nonaccrual loans and leases | $1,524 | $1,582 | $1,527 | ($58) | (4%) | ($3) | — | | Commercial and industrial | 233 | 283 | 261 | (50) | (18%) | (28) | (11%) | | Commercial real estate | 706 | 700 | 678 | 6 | 1% | 28 | 4% | | Residential mortgages | 198 | 198 | 153 | — | — | 45 | 29% | | Nonaccrual loans and leases to loans and leases | 1.09% | 1.15% | 1.08% | (6) bps | | 1 bps | | [Loans and Leases 90 Days or More Past Due and Accruing](index=16&type=section&id=Loans%20and%20Leases%2090%20Days%20or%20More%20Past%20Due%20and%20Accruing) Loans and leases 90+ days past due increased QoQ but decreased YoY, driven by a significant QoQ rise in commercial real estate | Metric | June 30, 2025 ($ Millions) | Mar 31, 2025 ($ Millions) | June 30, 2024 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :-------------------------- | :------------------------- | :------------------------- | :------------------------- | :------------- | :------------- | :------------- | :------------- | | Total loans and leases | $194 | $155 | $228 | $39 | 25% | ($34) | (15%) | | Commercial real estate | 60 | 4 | 36 | 56 | NM | 24 | 67% | | Residential mortgages | 128 | 138 | 182 | (10) | (7%) | (54) | (30%) | [Charge-offs, Recoveries, and Related Ratios](index=17&type=section&id=Charge-offs%2C%20Recoveries%2C%20and%20Related%20Ratios) Total net charge-offs decreased QoQ but slightly increased YoY, with commercial charge-offs up and retail charge-offs down QoQ | Metric | 2Q25 ($ Millions) | 1Q25 ($ Millions) | 2Q24 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------------- | :------------- | :------------- | :------------- | :------------- | | Total gross charge-offs | $201 | $234 | $223 | ($33) | (14%) | ($22) | (10%) | | Total gross recoveries | 34 | 34 | 39 | — | — | (5) | (13%) | | Total net charge-offs | 167 | 200 | 184 | (33) | (17%) | (17) | (9%) | | Commercial net charge-offs | 92 | 81 | 96 | 11 | 14% | (4) | (4%) | | Retail net charge-offs | 75 | 119 | 88 | (44) | (37%) | (13) | (15%) | | Annualized net charge-off rate (Total loans and leases) | 0.48% | 0.58% | 0.52% | (10) bps | | (4) bps | | - For the six months ended June 30, 2025, total net charge-offs increased by **1%** to **$367 million** compared to 2024[21](index=21&type=chunk) [Summary of Changes in the Components of the Allowance for Credit Losses](index=19&type=section&id=Summary%20of%20Changes%20in%20the%20Components%20of%20the%20Allowance%20for%20Credit%20Losses) Total allowance for credit losses decreased slightly QoQ and YoY, with net charge-offs down QoQ and provision for losses down YoY | Metric | 2Q25 ($ Millions) | 1Q25 ($ Millions) | 2Q24 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :-------------------------- | :---------------- | :---------------- | :---------------- | :------------- | :------------- | :------------- | :------------- | | Allowance for loan and lease losses - ending | $2,008 | $2,014 | $2,125 | ($6) | — | ($117) | (6%) | | Total allowance for credit losses - ending | 2,209 | 2,212 | 2,306 | (3) | — | (97) | (4%) | | Net charge-offs | 167 | 200 | 184 | (33) | (17%) | (17) | (9%) | | Total provision for loan and lease losses | 161 | 153 | 223 | 8 | 5% | (62) | (28%) | | Commercial allowance for credit losses | 1,269 | 1,312 | 1,429 | (43) | (3%) | (160) | (11%) | | Retail allowance for credit losses | 940 | 900 | 877 | 40 | 4% | 63 | 7% | - For the six months ended June 30, 2025, the total allowance for credit losses decreased by **4%** to **$2,209 million** compared to 2024[23](index=23&type=chunk) [Capital and Ratios](index=20&type=section&id=Capital%20and%20Ratios) This section reviews the company's capital structure, including capital ratios and tangible common equity [Capital Ratios and Components (Preliminary)](index=20&type=section&id=Capital%20Ratios%20and%20Components%20%28Preliminary%29) Capital ratios remained strong and stable in 2Q25, with CET1 and Tier 1 capital slightly up QoQ but down YoY | Metric | June 30, 2025 ($ Millions) | Mar 31, 2025 ($ Millions) | June 30, 2024 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :-------------------------- | :------------------------- | :------------------------- | :------------------------- | :------------- | :------------- | :------------- | :------------- | | CET1 capital | $17,812 | $17,751 | $18,086 | $61 | — | ($274) | (2%) | | Tier 1 capital | 19,925 | 19,864 | 20,198 | 61 | — | (273) | (1%) | | Total capital | 23,221 | 23,156 | 23,551 | 65 | — | (330) | (1%) | | Risk-weighted assets | 168,017 | 166,908 | 168,393 | 1,109 | 1% | (376) | — | | CET1 capital ratio | 10.6% | 10.6% | 10.7% | | | | | | Tier 1 leverage ratio | 9.4% | 9.4% | 9.4% | | | | | [Tangible Common Equity (Period-End and Average)](index=20&type=section&id=Tangible%20Common%20Equity%20%28Period-End%20and%20Average%29) Tangible common equity (TCE) increased healthily QoQ and YoY, driven by common stockholders' equity growth and reduced intangible assets | Metric | June 30, 2025 ($ Millions) | Mar 31, 2025 ($ Millions) | June 30, 2024 ($ Millions) | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :-------------------------- | :------------------------- | :------------------------- | :------------------------- | :------------- | :------------- | :------------- | :------------- | | Total tangible common equity (period-end) | $15,246 | $14,867 | $13,866 | $379 | 3% | $1,380 | 10% | | Total tangible common equity (average) | 14,611 | 14,297 | 13,527 | 314 | 2% | 1,084 | 8% | | Common stockholders' equity (period-end) | 23,121 | 22,753 | 21,757 | 368 | 2% | 1,364 | 6% | | Other intangible assets (period-end) | 128 | 137 | 139 | (9) | (7%) | (11) | (8%) | [Non-GAAP Financial Measures and Reconciliations](index=21&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines and reconciles non-GAAP financial measures, providing insights into underlying operational performance [Non-GAAP Financial Measures Overview](index=21&type=section&id=Non-GAAP%20Financial%20Measures%20Overview) This section defines 'Underlying' non-GAAP measures, which exclude non-recurring items, used by management and investors to assess ongoing performance - Non-GAAP measures, labeled **'Underlying,'** exclude specific items that management deems not indicative of the company's ongoing financial performance[25](index=25&type=chunk) - These measures are used by management for evaluating operating performance and making day-to-day operating decisions, and are considered useful for investors in conjunction with GAAP results[25](index=25&type=chunk) - Investors are cautioned not to rely solely on non-GAAP measures, but to consider them with the most directly comparable GAAP measures, as they have limitations as analytical tools[26](index=26&type=chunk) [Key Non-GAAP Reconciliations](index=22&type=section&id=Key%20Non-GAAP%20Reconciliations) This section provides detailed reconciliations for 'Underlying' non-GAAP measures, adjusting GAAP figures by removing 'notable items' for core performance insights | Metric | 2Q25 (GAAP) | 2Q25 (Underlying) | 2Q24 (GAAP) | 2Q24 (Underlying) | YoY Change (Underlying) ($) | YoY Change (Underlying) (%) | | :--------------------------------- | :---------- | :---------------- | :---------- | :---------------- | :-------------------------- | :-------------------------- | | Total revenue | $2,037 | $2,037 | $1,963 | $1,959 | $78 | 4% | | Noninterest expense | 1,319 | 1,319 | 1,301 | 1,265 | $54 | 4% | | Net income | 436 | 436 | 392 | 408 | $28 | 7% | | Diluted earnings per share | 0.92 | 0.92 | 0.78 | 0.82 | $0.10 | 12% | | Efficiency ratio | 64.76% | 64.76% | 66.27% | 64.59% | 17 bps | | | Return on average common equity | 7.18% | 7.18% | 6.70% | 7.00% | 18 bps | | | Return on average tangible common equity | 11.05% | 11.05% | 10.61% | 11.09% | (4) bps | | - Notable items, which are excluded from **'Underlying'** measures, impacted noninterest income, noninterest expense, and income tax expense in prior periods, but had no impact in **2Q25**[27](index=27&type=chunk)

Core Viewpoint - Citizens Financial Group, Inc. (CFG) is expected to report an increase in second-quarter 2025 earnings and revenues compared to the same quarter last year, with various factors influencing this performance [1][18]. Financial Performance Expectations - CFG's net interest income (NII) is projected to rise by 3% in Q2 2025 from the previous quarter, supported by stable interest rates maintained by the Federal Reserve [3][11]. - The Zacks Consensus Estimate for NII is $1.44 billion, reflecting a 3.2% increase from the prior quarter [4]. - The consensus estimate for second-quarter revenues is $2.01 billion, indicating a 2.2% rise from the year-ago figure [18]. Loan and Asset Quality Insights - Despite macroeconomic uncertainties, demand for commercial and industrial loans and consumer loans is expected to have improved, leading to a modest rise in CFG's lending activities [5]. - The Zacks Consensus Estimate for average interest-earning assets is $196.2 billion, showing a slight increase from the previous quarter [6]. - Non-accrual loans are estimated to rise to $1.62 billion, a 2.4% increase sequentially, indicating potential concerns regarding asset quality [15]. Non-Interest Income and Fee Growth - Mortgage banking fees are expected to increase to $63 million, a 6.6% rise from the prior quarter, driven by improved refinancing activities [8]. - Trust and investment services fees are projected to reach $84 million, reflecting a 3.7% increase from the previous quarter [9]. - Capital markets fees are estimated at $108.4 million, indicating an 8.4% sequential rise, supported by improved deal-making activities in the latter part of the quarter [12][10]. Expense Management - CFG anticipates that adjusted non-interest expenses will remain stable compared to the first quarter, despite increased costs from new banking offices and technology investments [14].

Analysts on Wall Street project that Citizens Financial Group (CFG) will announce quarterly earnings of $0.88 per share in its forthcoming report, representing an increase of 12.8% year over year. Revenues are projected to reach $2.01 billion, increasing 2.2% from the same quarter last year. Over the last 30 days, there has been an upward revision of 0.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their ini ...

Core Viewpoint - Citizens Financial Group (CFG) is well-positioned to continue its earnings-beat streak in the upcoming report, supported by a positive earnings surprise history and favorable analyst estimates [1][5]. Earnings Performance - For the last reported quarter, Citizens Financial Group achieved earnings of $0.77 per share, exceeding the Zacks Consensus Estimate of $0.75 per share, resulting in a surprise of 2.67% [2]. - In the previous quarter, the company reported earnings of $0.85 per share against an expected $0.83 per share, delivering a surprise of 2.41% [2]. Earnings Estimates - Recent estimates for Citizens Financial Group have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for the company stands at +1.55%, reflecting increased analyst optimism regarding its near-term earnings potential [8]. Zacks Rank and Predictive Power - The stock holds a Zacks Rank of 3 (Hold), which, when combined with a positive Earnings ESP, suggests a high probability of beating consensus estimates, with historical data indicating nearly 70% success in such cases [6][8]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being more reflective of recent analyst revisions [7].

Core Viewpoint - Citizens Financial Group's share price increased by nearly 11% in June due to a significant share repurchase plan and favorable results from the Federal Reserve's banking industry stress test [1][2]. Group 1: Share Repurchase Plan - Citizens Financial announced a $1.2 billion increase to its existing stock buyback program, bringing the total to $1.5 billion, which is substantial for a company with a market cap under $21 billion [2][4]. Group 2: Stress Test Results - The Federal Reserve's annual stress tests showed that all 22 major U.S. banks, including the "big four" (Bank of America, JPMorgan Chase, Wells Fargo, and Citigroup), passed their evaluations, indicating that mid- and large-sized banks are generally in good health [5][6]. - Citizens Financial is tested every two years and was not part of this year's stress test, but the positive results for other banks suggest resilience in the banking sector [6][8]. Group 3: Financial Performance - Despite the positive market reaction, Citizens Financial's first-quarter revenue was stagnant, with a decline in average loans and leases, although net profit increased by 12% to $374 million due to a rise in non-interest income [9].

Interest Rate Outlook - The odds of the Federal Reserve cutting interest rates in July are approximately 20%, increasing to around 68% in September, and analysts predict a 50% chance of a 50 basis points reduction by October [1] Market Reaction - Investors are positioning themselves ahead of potential rate cuts, leading to increased stock purchases, particularly in finance stocks due to the expected bullish impact on the broader market [2] Yield Curve Dynamics - A Federal Reserve rate cut would lower short-term borrowing rates while longer-term rates may remain stable or rise, resulting in a steepening yield curve, which is favorable for banks benefiting from an expanded net interest margin (NIM) [3] Fifth Third Bancorp - Fifth Third Bancorp has seen its NIM expand for five consecutive quarters, attributed to a diversified loan portfolio with a 3% increase in average loans sequentially and year-over-year [4] - The bank's CET1 capital ratio stands at approximately 10.5%, significantly above the 7.7% requirement, and it plans to buy back up to 100 million shares, contributing to a positive outlook [6] - Analysts project a consensus price target of $47.53 for Fifth Third Bancorp, indicating a potential 17.4% increase [6] Comerica - Comerica is highly sensitive to interest rate changes, with earnings expected to rise as loan yields increase faster than deposit costs, although muted loan activity has led to a year-over-year decline in EPS [8] - The bank anticipates improved loan activity in the second half of the year, despite projecting a 1% to 2% decrease in average loans for the full year 2025 [9] - Analysts forecast a 9% growth in EPS for Comerica this year, with a consensus price target of $61.95, representing a 7.3% gain [10] Citizens Financial Group - Citizens Financial Group has shifted its balance sheet towards higher-yielding commercial loans, which is expected to enhance earnings growth as rate pressures ease [11] - The bank's CET1 ratio is 10.6%, and analysts project a 27% growth in EPS over the next 12 months, suggesting the stock may be undervalued [12] - The consensus price target for Citizens Financial Group is $47.89, with a current dividend yield of 3.93% [13]

Core Viewpoint - Citizens Financial Group (CFG) is enhancing its shareholder-focused strategy, demonstrating confidence in its long-term performance through an increased share repurchase authorization of $1.5 billion, up from $300 million previously approved in June 2024 [1][8]. Financial Performance - CFG's quarterly dividend has been increased twice in the last five years, with a current payout ratio of 53% and a dividend yield of 4.15% based on a closing price of $40.45 [2]. - CFG's total revenues experienced a compound annual growth rate (CAGR) of 3% from 2020 to 2024, with net interest income (NII) growing at a CAGR of 5.3% during the same period [12]. - For 2025, management anticipates NII growth of 3-5% and non-interest income growth of 8-10% [14]. Capital Position - As of March 31, 2025, CFG reported total long-term borrowed funds of $12.3 billion and total available liquidity of $12.2 billion, indicating a strong balance sheet [5]. - The Common Equity Tier 1 ratio was 10.6%, and the total capital ratio was 13.9% as of the same date, reflecting a solid capital position [5]. Growth Strategy - CFG is pursuing growth through acquisitions, cost-cutting programs, and private banking expansion, with notable acquisitions including Investors Bancorp and HSBC's East Coast branches [9][8]. - The "Tapping Our Potential" (TOP) program has delivered consistent cost savings, with TOP 9 achieving $150 million in pre-tax run-rate benefits in 2024, and TOP 10 targeting an additional $100 million in savings by year-end 2025 [10]. Loan and Deposit Trends - CFG's loans and leases and total deposits recorded CAGRs of 3.1% and 4.4%, respectively, from 2020 to 2024, with expectations of continued growth through 2027 [11]. - Despite a dip in loan balances in early 2025, management remains optimistic about sustaining a healthy loan pipeline through a relationship-driven lending model [11]. Expense Management - Non-interest expenses have seen a CAGR of 18.4% from 2020 to 2024, with management projecting a 4% increase in adjusted non-interest expenses for 2025 [15]. - The company is facing elevated expense levels due to investments in private banking and digital infrastructure [15]. Market Performance - CFG shares have increased by 16.3% over the past year, outperforming the industry growth of 11.1% [17]. - CFG trades at a forward price-to-earnings (P/E) ratio of 10.76X, slightly above the industry average of 10.1X [20]. Investment Considerations - CFG's ongoing efficiency initiatives and strategic growth moves provide a solid foundation for future financial growth, despite near-term challenges related to elevated expenses and reliance on commercial lending [24].

Summary of Citizens Financial Group (CFG) 2025 Conference Call Company Overview - **Company**: Citizens Financial Group (CFG) - **Date of Conference**: June 10, 2025 - **Speaker**: Don McCree, Senior Vice Chair and Head of Commercial Banking Key Points Company Positioning and Strategy - Citizens Financial Group is positioned as one of the best commercial banks among super regional peers, focusing on national expansion from its initial regional base in New England and the Mid-Atlantic [2][3] - The bank has developed a comprehensive set of capabilities beyond traditional lending, including leveraged finance, syndicated finance, and global markets [4][5] - Citizens has built a significant private equity and private capital business, banking 4,000 middle market companies, with 10% of them looking to transition at any time, primarily into private equity [6][7] Competitive Advantages - Citizens competes effectively with larger money center banks by focusing on the middle market, where larger banks often lack attention [8][10] - The bank has a strong team with extensive experience, allowing it to evaluate risk and price opportunities effectively [9][10] - Citizens ranks number two in middle market leverage league tables, demonstrating its competitive success [10] Macro Environment and Client Sentiment - Clients are adjusting to macroeconomic uncertainties, with a general sense of optimism emerging regarding business activity [13][15] - Companies have improved their financial management practices post-COVID, leading to reduced financial distress [14][15] - There is a growing confidence among companies to pursue acquisitions if they can secure favorable valuations [56][57] Financial Performance and Guidance - Citizens expects solid performance in the second quarter, maintaining guidance with strong net interest income (NII) and credit performance [17][18] - The bank anticipates an 8-10% growth in fee income for 2025, driven by diversified revenue streams including M&A, syndicated finance, and global markets [21][22] Capital Markets and M&A Activity - The capital markets have seen a resurgence, with increased activity expected in the second half of the year, despite previous volatility [30][31] - There is a significant amount of liquidity in the market, with private equity firms actively fundraising [28][29] - Citizens is well-positioned to capitalize on generational changes in ownership within companies, facilitating M&A transactions [26][27] Loan Growth and Commercial Lending - Commercial lending activity is driven by inventory building and real investments, with healthy pipelines expected to continue [48][49] - The bank is seeing increased line utilization, indicating a positive trend in loan growth [49] Risk Management and Credit Quality - Citizens is closely monitoring office real estate exposure, which has been well reserved, and is actively reducing its overall commercial real estate portfolio [86][88] - The bank has seen a decline in loans moving into workout groups, indicating stable credit quality [86] Private Capital and Private Equity - Citizens has positioned itself to serve both private equity and private credit markets, focusing on comprehensive service offerings [72][73] - The bank has opted not to enter partnerships with private credit firms, preferring to maintain flexibility and optionality in its client relationships [76][78] Future Outlook - The bank is optimistic about the potential for new money transactions to increase, driven by improved market conditions and client sentiment [30][31] - Citizens aims to leverage its private banking capabilities to enhance cross-selling opportunities and strengthen its market presence [64][71] Additional Insights - Citizens is focusing on enhancing its treasury solutions business, which has shown a 10% revenue CAGR since 2015, by expanding into new sectors and technologies [39][40] - The bank is also exploring opportunities in embedded finance and partnerships with fintechs to enhance its service offerings [44][45]

Financial Data and Key Metrics Changes - The return on tangible common equity has improved from below 5% to over 10%, with a path to the mid to upper teens over time [2] - The company anticipates net interest income growth of 3% to 5% for the year, with a net interest margin forecasted between 3.25% and 3.50% [34][36] Business Line Data and Key Metrics Changes - The consumer banking segment has been transformed to target mass affluent and affluent customers, resulting in mid-single-digit household growth and high-single-digit deposit growth [14][15] - The commercial banking segment has expanded its coverage to mid-corporate clients, with significant investments in industry expertise and product capabilities [16][18] - The private banking segment is expected to become a significant contributor to profitability, with a projected EPS accretion of over 5% [31] Market Data and Key Metrics Changes - The company has entered the New York market, which is its fastest-growing region, demonstrating confidence in competing against larger banks [14][15] - Loan demand is expected to grow, particularly in the private banking sector, with anticipated growth of nearly $1 billion per quarter [38] Company Strategy and Development Direction - The company has undergone a significant transformation over the past decade, shedding legacy businesses and focusing on building new ones [10][11] - The strategy includes a focus on a "one citizens" approach, integrating private and commercial banking teams to enhance service delivery in key markets [29][30] - The company aims to improve its efficiency ratio from the mid to upper 60s down to the mid-50s over the long term [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic outlook, citing a pro-business administration and anticipated improvements in trade and regulatory policies [3][4] - The company is well-positioned to weather economic uncertainties, with a strong credit outlook and minimal adverse migration in consumer loans [7][70] Other Important Information - The company has made significant investments in technology and risk management to support its growth strategy [11][64] - There is a focus on enhancing customer experience through improved digital capabilities and high-touch service models [28][64] Q&A Session Summary Question: What is the outlook for loan growth? - Management anticipates solid growth in the private banking sector, with modest growth in consumer loans focused on real estate-backed lending [38][39] Question: How does the company plan to improve its efficiency ratio? - The company aims to achieve a lower efficiency ratio through disciplined investment and operational improvements, targeting a mid-50s ratio in the long term [55][58] Question: What is the company's stance on regulatory changes? - Management is optimistic about the regulatory environment, believing that recent changes will facilitate a more favorable operating landscape for the bank [79][80]