[Consolidated Financial Highlights](index=3&type=section&id=Consolidated%20Financial%20Highlights) This section overviews the company's 3Q25 financial performance, highlighting increased revenue, net income, and EPS, improved efficiency, and strong capital ratios [Selected Operating Data](index=3&type=section&id=Selected%20Operating%20Data) The company achieved significant 3Q25 growth in total revenue and net income, resulting in higher diluted EPS and increased book values Selected Operating Data (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 ($/%) | 3Q25 Change vs 3Q24 ($/%) | | :----------------------- | :----- | :----- | :----- | :------------------------ | :------------------------ | | Total revenue (in millions USD) | $2,118 | $2,037 | $1,901 | $81 (4%) | $217 (11%) | | Noninterest expense (in millions USD) | 1,335 | 1,319 | 1,259 | 16 (1%) | 76 (6%) | | Net income (in millions USD) | 494 | 436 | 382 | 58 (13%) | 112 (29%) | | Diluted earnings per share (USD) | $1.05 | $0.92 | $0.77 | $0.13 (14%) | $0.28 (36%) | | Book value per common share (USD) | $54.97 | $53.43 | $51.25 | $1.54 (3%) | $3.72 (7%) | | Tangible book value per common share (USD) | $36.73 | $35.23 | $33.54 | $1.50 (4%) | $3.19 (10%) | [Financial Ratios](index=4&type=section&id=Financial%20Ratios) Key financial ratios improved in 3Q25, with increased net interest margin and returns on equity, alongside a lower efficiency ratio Financial Ratios (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 (bps) | 3Q25 Change vs 3Q24 (bps) | | :-------------------------------- | :----- | :----- | :----- | :------------------------ | :------------------------ | | Net interest margin (FTE) | 3.00% | 2.95% | 2.77% | 5 bps | 23 bps | | Return on average common equity | 7.77% | 7.18% | 6.12% | 59 bps | 165 bps | | Return on average tangible common equity | 11.75% | 11.05% | 9.45% | 70 bps | 230 bps | | Efficiency ratio | 63.03% | 64.76% | 66.23% | (173) bps | (320) bps | [Capital Ratios - Period-End](index=4&type=section&id=Capital%20Ratios%20-%20Period-End) The company maintained stable and strong capital ratios at 3Q25 period-end, with CET1, Tier 1, and Total Capital ratios consistent Capital Ratios (Period-End 3Q25) | Metric | 3Q25 | | :------------------ | :----- | | CET1 capital ratio | 10.7% | | Tier 1 capital ratio | 11.9% | | Total capital ratio | 13.9% | | Tier 1 leverage ratio | 9.4% | | Common equity ratio | 10.6% | | Tangible common equity ratio | 7.4% | [Selected Balance Sheet Data](index=4&type=section&id=Selected%20Balance%20Sheet%20Data) The loan-to-deposit ratio decreased QoQ and YoY, reflecting shifts in the balance of loans and deposits Loan-to-Deposit Ratio (Period-End) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 (bps) | 3Q25 Change vs 3Q24 (bps) | | :-------------------------- | :----- | :----- | :----- | :------------------------ | :------------------------ | | Loan-to-deposit ratio | 78.26% | 79.56% | 80.85% | (130) bps | (259) bps | [Consolidated Statements of Operations (unaudited)](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20(unaudited)) This section details 3Q25 and YTD revenues, expenses, and net income, showing growth in net interest and noninterest income, boosting net income [Quarterly Performance](index=5&type=section&id=Quarterly%20Performance) 3Q25 saw net interest income rise 4% QoQ and 9% YoY, with total noninterest income up 5% QoQ and 18% YoY, boosting net income Quarterly Performance (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 ($/%) | 3Q25 Change vs 3Q24 ($/%) | | :-------------------------------- | :----- | :----- | :----- | :------------------------ | :------------------------ | | Total interest income (in millions USD) | $2,458 | $2,407 | $2,539 | $51 (2%) | ($81) (3%) | | Total interest expense (in millions USD) | 970 | 970 | 1,170 | — (0%) | ($200) (17%) | | Net interest income (in millions USD) | 1,488 | 1,437 | 1,369 | 51 (4%) | 119 (9%) | | Total noninterest income (in millions USD) | 630 | 600 | 532 | 30 (5%) | 98 (18%) | | Total revenue (in millions USD) | 2,118 | 2,037 | 1,901 | 81 (4%) | 217 (11%) | | Provision for credit losses (in millions USD) | 154 | 164 | 172 | (10) (6%) | (18) (10%) | | Total noninterest expense (in millions USD) | 1,335 | 1,319 | 1,259 | 16 (1%) | 76 (6%) | | Net income (in millions USD) | $494 | $436 | $382 | $58 (13%) | $112 (29%) | [Year-to-Date Performance](index=5&type=section&id=Year-to-Date%20Performance) For 9M 2025, net interest income increased 2% YoY and noninterest income grew 11% YoY, leading to an 18% rise in net income Year-to-Date Performance (9M 2025 vs 9M 2024) | Metric | 9M 2025 | 9M 2024 | 9M 2025 Change vs 9M 2024 ($/%) | | :-------------------------------- | :------ | :------ | :------------------------------- | | Total interest income (in millions USD) | $7,217 | $7,724 | ($507) (7%) | | Total interest expense (in millions USD) | 2,901 | 3,503 | ($602) (17%) | | Net interest income (in millions USD) | 4,316 | 4,221 | 95 (2%) | | Total noninterest income (in millions USD) | 1,774 | 1,602 | 172 (11%) | | Total revenue (in millions USD) | 6,090 | 5,823 | 267 (5%) | | Provision for credit losses (in millions USD) | 471 | 525 | (54) (10%) | | Total noninterest expense (in millions USD) | 3,968 | 3,918 | 50 (1%) | | Net income (in millions USD) | $1,303 | $1,108 | $195 (18%) | [Consolidated Balance Sheets (unaudited)](index=6&type=section&id=Consolidated%20Balance%20Sheets%20(unaudited)) This section details the company's 3Q25 financial position, showing increased assets and deposits, decreased long-term borrowed funds, and shifts in funding [Period-End Balances](index=6&type=section&id=Period-End%20Balances) As of Sept 30, 2025, total assets and deposits increased QoQ and YoY, while long-term borrowed funds significantly decreased Consolidated Balance Sheet Highlights (Sept 30, 2025 vs June 30, 2025 vs Sept 30, 2024) | Metric | Sept 30, 2025 | June 30, 2025 | Sept 30, 2024 | Change vs June 30, 2025 ($/%) | Change vs Sept 30, 2024 ($/%) | | :-------------------------------- | :------------ | :------------ | :------------ | :----------------------------- | :----------------------------- | | **ASSETS** | | | | | | | Total Assets (in millions USD) | $222,747 | $218,310 | $219,706 | $4,437 (2%) | $3,041 (1%) | | Loans and leases (net) (in millions USD) | 138,898 | 137,296 | 139,553 | 1,602 (1%) | (655) (0%) | | Debt securities available for sale (in millions USD) | 35,419 | 34,658 | 32,835 | 761 (2%) | 2,584 (8%) | | **LIABILITIES** | | | | | | | Total Deposits (in millions USD) | 180,011 | 175,086 | 175,188 | 4,925 (3%) | 4,823 (3%) | | Noninterest-bearing deposits (in millions USD) | 39,472 | 38,001 | 35,978 | 1,471 (4%) | 3,494 (10%) | | Total long-term borrowed funds (in millions USD) | 10,441 | 12,526 | 13,944 | (2,085) (17%) | (3,503) (25%) | | Total Liabilities (in millions USD) | 196,918 | 193,076 | 194,774 | 3,842 (2%) | 2,144 (1%) | | **STOCKHOLDERS' EQUITY** | | | | | | | Total Stockholders' Equity (in millions USD) | 25,829 | 25,234 | 24,932 | 595 (2%) | 897 (4%) | | Total tangible common equity (in millions USD) | $15,848 | $15,246 | $14,931 | $602 (4%) | $917 (6%) | [Loans and Deposits](index=7&type=section&id=Loans%20and%20Deposits) This section details period-end loan and deposit portfolios, showing growth in commercial and residential loans, declines in auto and education loans, and overall deposit increases [Loans and Leases Breakdown](index=7&type=section&id=Loans%20and%20Leases%20Breakdown) Total loans and leases increased 1% QoQ but decreased 1% YoY, with commercial and industrial loans growing, while automobile loans declined significantly Loans and Leases (Sept 30, 2025 vs June 30, 2025 vs Sept 30, 2024) | Loan Category | Sept 30, 2025 | June 30, 2025 | Sept 30, 2024 | Change vs June 30, 2025 ($/%) | Change vs Sept 30, 2024 ($/%) | | :------------------------ | :------------ | :------------ | :------------ | :----------------------------- | :----------------------------- | | Commercial and industrial (in millions USD) | $46,953 | $45,412 | $43,825 | $1,541 (3%) | $3,128 (7%) | | Commercial real estate (in millions USD) | 25,540 | 26,230 | 27,983 | (690) (3%) | (2,443) (9%) | | Total commercial (in millions USD) | 72,493 | 71,642 | 71,808 | 851 (1%) | 685 (1%) | | Residential mortgages (in millions USD) | 34,477 | 33,823 | 32,379 | 654 (2%) | 2,098 (6%) | | Home equity (in millions USD) | 18,415 | 17,711 | 15,992 | 704 (4%) | 2,423 (15%) | | Automobile (in millions USD) | 2,816 | 3,407 | 5,540 | (591) (17%) | (2,724) (49%) | | Education (in millions USD) | 8,556 | 8,550 | 11,118 | 6 (0%) | (2,562) (23%) | | Total loans and leases (in millions USD) | $140,870 | $139,304 | $141,632 | $1,566 (1%) | ($762) (1%) | [Deposits Breakdown](index=7&type=section&id=Deposits%20Breakdown) Total deposits increased 3% QoQ and YoY, driven by noninterest-bearing demand and money market deposits, while time deposits decreased Deposits (Sept 30, 2025 vs June 30, 2025 vs Sept 30, 2024) | Deposit Category | Sept 30, 2025 | June 30, 2025 | Sept 30, 2024 | Change vs June 30, 2025 ($/%) | Change vs Sept 30, 2024 ($/%) | | :------------------------ | :------------ | :------------ | :------------ | :----------------------------- | :----------------------------- | | Noninterest-bearing demand (in millions USD) | $39,472 | $38,001 | $35,978 | $1,471 (4%) | $3,494 (10%) | | Checking with interest (in millions USD) | 35,219 | 34,918 | 33,680 | 301 (1%) | 1,539 (5%) | | Savings (in millions USD) | 24,759 | 25,400 | 26,489 | (641) (3%) | (1,730) (7%) | | Money market (in millions USD) | 59,709 | 55,638 | 54,654 | 4,071 (7%) | 5,055 (9%) | | Time (in millions USD) | 20,852 | 21,129 | 24,387 | (277) (1%) | (3,535) (14%) | | Total deposits (in millions USD) | $180,011 | $175,086 | $175,188 | $4,925 (3%) | $4,823 (3%) | [Average Balance Sheets, Annualized Yields and Rates](index=8&type=section&id=Average%20Balance%20Sheets%2C%20Annualized%20Yields%20and%20Rates) This section analyzes average balances, yields, and rates, showing increased net interest margin and spread in 3Q25, reflecting effective asset-liability management [Quarterly Trends in Yields and Rates](index=8&type=section&id=Quarterly%20Trends%20in%20Yields%20and%20Rates) 3Q25 saw net interest margin (FTE) rise 5 bps QoQ and 23 bps YoY to **3.00%**, with improved interest rate spread, indicating better profitability Quarterly Trends (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 | 3Q25 Change vs 3Q24 | | :-------------------------------- | :----- | :----- | :----- | :------------------ | :------------------ | | Total interest-earning assets (Avg Bal, in millions USD) | $197,598 | $196,318 | $197,164 | $1,280 | $434 | | Total interest-earning assets (Rate) | 4.92% | 4.89% | 5.09% | 3 bps | (17) bps | | Total interest-bearing liabilities (Avg Bal, in millions USD) | $150,119 | $150,202 | $151,655 | ($83) | ($1,536) | | Total interest-bearing liabilities (Rate) | 2.56% | 2.59% | 3.07% | (3) bps | (51) bps | | Interest Rate Spread | 2.36% | 2.30% | 2.02% | 6 bps | 34 bps | | Net Interest Income (FTE, in millions USD) | $1,492 | $1,441 | $1,373 | $51 | $119 | | Net Interest Margin (FTE) | 3.00% | 2.95% | 2.77% | 5 bps | 23 bps | [Year-to-Date Trends in Yields and Rates](index=9&type=section&id=Year-to-Date%20Trends%20in%20Yields%20and%20Rates) For 9M 2025, net interest margin (FTE) increased 10 bps YoY to **2.95%**, with improved interest rate spread despite lower interest-earning assets Year-to-Date Trends (9M 2025 vs 9M 2024) | Metric | 9M 2025 | 9M 2024 | 9M 2025 Change vs 9M 2024 | | :-------------------------------- | :------ | :------ | :-------------------------- | | Total interest-earning assets (Avg Bal, in millions USD) | $196,334 | $198,561 | ($2,227) | | Total interest-earning assets (Rate) | 4.88% | 5.15% | (27) bps | | Total interest-bearing liabilities (Avg Bal, in millions USD) | $149,941 | $152,703 | ($2,762) | | Total interest-bearing liabilities (Rate) | 2.58% | 3.06% | (48) bps | | Interest Rate Spread | 2.30% | 2.09% | 21 bps | | Net Interest Income (FTE, in millions USD) | $4,328 | $4,234 | $94 | | Net Interest Margin (FTE) | 2.95% | 2.85% | 10 bps | [Mortgage Banking Fees](index=10&type=section&id=Mortgage%20Banking%20Fees) This section details mortgage banking fees, showing a QoQ decrease but YoY increase, driven by MSR valuation changes and higher residential originations [Mortgage Banking Fees Summary](index=10&type=section&id=Mortgage%20Banking%20Fees%20Summary) Total mortgage banking fees decreased 33% QoQ to **$49 million** in 3Q25, primarily due to a **92% drop in MSR valuation changes**, but increased 7% YoY Mortgage Banking Fees (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 ($/%) | 3Q25 Change vs 3Q24 ($/%) | | :-------------------------------- | :----- | :----- | :----- | :------------------------ | :------------------------ | | Production revenue (in millions USD) | $18 | $19 | $15 | ($1) (5%) | $3 (20%) | | Mortgage servicing revenue (in millions USD) | 29 | 28 | 33 | 1 (4%) | (4) (12%) | | MSR valuation changes, net of hedge impact (in millions USD) | 2 | 26 | (2) | (24) (92%) | 4 (NM) | | Total mortgage banking fees (in millions USD) | $49 | $73 | $46 | ($24) (33%) | $3 (7%) | [Residential Real Estate Originations](index=10&type=section&id=Residential%20Real%20Estate%20Originations) Residential real estate originations decreased 6% QoQ but increased 19% YoY in 3Q25, with YTD originations growing 34% Residential Real Estate Originations (9M 2025 vs 9M 2024) | Metric | 9M 2025 | 9M 2024 | 9M 2025 Change vs 9M 2024 ($/%) | | :------------------------ | :------ | :------ | :------------------------------- | | Total originations (in millions USD) | $10,879 | $8,097 | $2,782 (34%) | | Originated for sale (in millions USD) | 6,781 | 5,316 | 1,465 (28%) | | Originated for investment (in millions USD) | 4,098 | 2,781 | 1,317 (47%) | [Mortgage Servicing Information (UPB)](index=10&type=section&id=Mortgage%20Servicing%20Information%20(UPB)) Total mortgage servicing UPB increased slightly YoY, driven by owned loans serviced, offsetting a decrease in loans serviced for others Mortgage Servicing Information (UPB) (Sept 30, 2025 vs Sept 30, 2024) | Metric | Sept 30, 2025 | Sept 30, 2024 | Change vs Sept 30, 2024 ($/%) | | :------------------------ | :------------ | :------------ | :----------------------------- | | Loans serviced for others (in millions USD) | $95,244 | $96,120 | ($876) (1%) | | Owned loans serviced (in millions USD) | 34,760 | 32,655 | 2,105 (6%) | | Total (in millions USD) | $130,004 | $128,775 | $1,229 (1%) | [Segment Financial Highlights](index=11&type=section&id=Segment%20Financial%20Highlights) This section breaks down financial performance and key metrics across Consumer, Commercial, Non-Core, and Other segments, reflecting varied market conditions [Consumer Banking](index=11&type=section&id=Consumer%20Banking) Consumer Banking reported increased net income and total revenue QoQ and YoY, driven by net interest and noninterest income growth, improving efficiency Consumer Banking Financial Performance (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 ($/%) | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :----- | :------------------------ | :------------------------ | | Net interest income (in millions USD) | $1,262 | $1,218 | $1,156 | $44 (4%) | $106 (9%) | | Noninterest income (in millions USD) | 311 | 329 | 285 | (18) (5%) | 26 (9%) | | Total revenue (in millions USD) | 1,573 | 1,547 | 1,441 | 26 (2%) | 132 (9%) | | Net income (loss) (in millions USD) | $383 | $376 | $327 | $7 (2%) | $56 (17%) | Consumer Banking Average Balances (3Q25 vs 3Q24) | Metric | 3Q25 | 3Q24 | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :------------------------ | | Total assets (in millions USD) | $80,729 | $75,392 | $5,337 (7%) | | Total loans and leases (in millions USD) | 74,274 | 69,021 | 5,253 (8%) | | Deposits (in millions USD) | 128,547 | 121,899 | 6,648 (5%) | Consumer Banking Key Metrics (3Q25 vs 3Q24) | Metric | 3Q25 | 3Q24 | 3Q25 Change vs 3Q24 | | :------------------------ | :----- | :----- | :------------------ | | Net interest margin | 6.69% | 6.60% | 9 bps | | Efficiency ratio | 62.22% | 63.53% | (131) bps | [Commercial Banking](index=12&type=section&id=Commercial%20Banking) Commercial Banking saw QoQ net income and revenue increases from noninterest income, but YoY declines in net interest income and overall net income Commercial Banking Financial Performance (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 ($/%) | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :----- | :------------------------ | :------------------------ | | Net interest income (in millions USD) | $448 | $439 | $478 | $9 (2%) | ($30) (6%) | | Noninterest income (in millions USD) | 286 | 232 | 207 | 54 (23%) | 79 (38%) | | Total revenue (in millions USD) | 734 | 671 | 685 | 63 (9%) | 49 (7%) | | Net income (loss) (in millions USD) | $248 | $206 | $231 | $42 (20%) | $17 (7%) | Commercial Banking Average Balances (3Q25 vs 3Q24) | Metric | 3Q25 | 3Q24 | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :------------------------ | | Total assets (in millions USD) | $66,134 | $68,092 | ($1,958) (3%) | | Total loans and leases (in millions USD) | 62,905 | 64,974 | (2,069) (3%) | | Deposits (in millions USD) | 44,482 | 44,190 | 292 (1%) | Commercial Banking Key Metrics (3Q25 vs 3Q24) | Metric | 3Q25 | 3Q24 | 3Q25 Change vs 3Q24 | | :------------------------ | :----- | :----- | :------------------ | | Net interest margin | 2.78% | 2.90% | (12) bps | | Efficiency ratio | 45.15% | 43.84% | 131 bps | [Non-Core](index=13&type=section&id=Non-Core) The Non-Core segment's net loss decreased QoQ and YoY, driven by increased net interest income and lower noninterest expense, despite declining assets Non-Core Financial Performance (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 ($/%) | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :----- | :------------------------ | :------------------------ | | Net interest income (in millions USD) | ($7) | ($5) | ($28) | ($2) (40%) | $21 (75%) | | Total revenue (in millions USD) | (3) | (2) | (28) | (1) (50%) | 25 (89%) | | Noninterest expense (in millions USD) | 12 | 15 | 23 | (3) (20%) | (11) (48%) | | Net income (loss) (in millions USD) | ($14) | ($14) | ($51) | $0 (0%) | $37 (73%) | Non-Core Average Balances (3Q25 vs 3Q24) | Metric | 3Q25 | 3Q24 | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :------------------------ | | Total assets (in millions USD) | $4,000 | $8,389 | ($4,389) (52%) | | Total loans and leases (in millions USD) | 3,976 | 8,352 | (4,376) (52%) | [Other](index=14&type=section&id=Other) The 'Other' segment's net loss improved QoQ and YoY, primarily due to decreased noninterest expense and an improved provision for credit losses Other Segment Financial Performance (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 ($/%) | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :----- | :------------------------ | :------------------------ | | Net interest income (in millions USD) | ($215) | ($215) | ($237) | $0 (0%) | $22 (9%) | | Total revenue (in millions USD) | (186) | (179) | (197) | (7) (4%) | 11 (6%) | | Noninterest expense (in millions USD) | 11 | 24 | 20 | (13) (54%) | (9) (45%) | | Provision (benefit) for credit losses (in millions USD) | (9) | (3) | (20) | (6) (200%) | 11 (55%) | | Net income (loss) (in millions USD) | ($123) | ($132) | ($125) | $9 (7%) | $2 (2%) | Other Segment Average Balances (3Q25 vs 3Q24) | Metric | 3Q25 | 3Q24 | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :------------------------ | | Total assets (in millions USD) | $68,254 | $66,705 | $1,549 (2%) | | Deposits (in millions USD) | 2,928 | 7,962 | (5,034) (63%) | [Credit-Related Information](index=15&type=section&id=Credit-Related%20Information) This section overviews credit quality, showing decreasing nonaccrual loans and net charge-offs, indicating overall asset quality improvement [Nonaccrual loans and leases](index=15&type=section&id=Nonaccrual%20loans%20and%20leases) Total nonaccrual loans and leases decreased slightly QoQ and 10% YoY to **$1.518 billion**, driven by commercial real estate and retail reductions Nonaccrual Loans and Leases (Sept 30, 2025 vs June 30, 2025 vs Sept 30, 2024) | Category | Sept 30, 2025 | June 30, 2025 | Sept 30, 2024 | Change vs June 30, 2025 ($/%) | Change vs Sept 30, 2024 ($/%) | | :------------------------ | :------------ | :------------ | :------------ | :----------------------------- | :----------------------------- | | Commercial and industrial (in millions USD) | $230 | $233 | $219 | ($3) (1%) | $11 (5%) | | Commercial real estate (in millions USD) | 703 | 706 | 852 | (3) (0%) | (149) (17%) | | Total commercial (in millions USD) | 933 | 939 | 1,071 | (6) (1%) | (138) (13%) | | Total retail (in millions USD) | 585 | 585 | 616 | — (0%) | (31) (5%) | | Total nonaccrual loans and leases (in millions USD) | $1,518 | $1,524 | $1,687 | ($6) (0%) | ($169) (10%) | Asset Quality Ratios (Sept 30, 2025 vs Sept 30, 2024) | Metric | Sept 30, 2025 | Sept 30, 2024 | Change vs Sept 30, 2024 | | :-------------------------------- | :------------ | :------------ | :---------------------- | | Allowance for loan and lease losses to loans and leases | 1.40% | 1.47% | (7) bps | | Nonaccrual loans and leases to loans and leases | 1.08% | 1.19% | (11) 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 decreased 16% QoQ and 4% YoY to **$162 million**, mainly due to an **88% QoQ reduction** in commercial real estate Loans and Leases 90 Days or More Past Due and Accruing (Sept 30, 2025 vs June 30, 2025 vs Sept 30, 2024) | Category | Sept 30, 2025 | June 30, 2025 | Sept 30, 2024 | Change vs June 30, 2025 ($/%) | Change vs Sept 30, 2024 ($/%) | | :------------------------ | :------------ | :------------ | :------------ | :----------------------------- | :----------------------------- | | Commercial and industrial (in millions USD) | $39 | $3 | $5 | $36 (NM) | $34 (NM) | | Commercial real estate (in millions USD) | 7 | 60 | 15 | (53) (88%) | (8) (53%) | | Total commercial (in millions USD) | 46 | 63 | 20 | (17) (27%) | 26 (130%) | | Residential mortgages (in millions USD) | 114 | 128 | 146 | (14) (11%) | (32) (22%) | | Total loans and leases (in millions USD) | $162 | $194 | $169 | ($32) (16%) | ($7) (4%) | [Charge-offs, Recoveries, and Related Ratios](index=17&type=section&id=Charge-offs%2C%20Recoveries%2C%20and%20Related%20Ratios) Total net charge-offs decreased 3% QoQ and 16% YoY to **$162 million**, driven by commercial and retail reductions, with an **8 bps YoY** drop in the overall rate Total Gross Charge-offs (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 ($/%) | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :----- | :------------------------ | :------------------------ | | Total commercial (in millions USD) | $91 | $93 | $106 | ($2) (2%) | ($15) (14%) | | Total retail (in millions USD) | 104 | 108 | 125 | (4) (4%) | (21) (17%) | | Total gross charge-offs (in millions USD) | $195 | $201 | $231 | ($6) (3%) | ($36) (16%) | Total Net Charge-offs (3Q25 vs 2Q25 vs 3Q24) | Metric | 3Q25 | 2Q25 | 3Q24 | 3Q25 Change vs 2Q25 ($/%) | 3Q25 Change vs 3Q24 ($/%) | | :------------------------ | :----- | :----- | :----- | :------------------------ | :------------------------ | | Total commercial (in millions USD) | $85 | $92 | $98 | ($7) (8%) | ($13) (13%) | | Total retail (in millions USD) | 77 | 75 | 94 | 2 (3%) | (17) (18%) | | Total net charge-offs (in millions USD) | $162 | $167 | $192 | ($5) (3%) | ($30) (16%) | Annualized Net Charge-off Rates (3Q25 vs 3Q24) | Category | 3Q25 | 3Q24 | Change (bps) | | :------------------------ | :----- | :----- | :----------- | | Commercial and industrial | 0.26% | 0.49% | (23) bps | | Commercial real estate | 0.85% | 0.62% | 23 bps | | Total commercial | 0.47% | 0.54% | (7) bps | | Automobile | 0.43% | 0.81% | (38) bps | | Education | 0.92% | 0.85% | 7 bps | | Other retail | 5.45% | 4.93% | 52 bps | | Total loans and leases | 0.46% | 0.54% | (8) bps | [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 0% QoQ and 4% YoY to **$2.201 billion**, driven by a reduction in allowance for loan and lease losses Allowance for Loan and Lease Losses (Sept 30, 2025 vs June 30, 2025 vs Sept 30, 2024) | Metric | Sept 30, 2025 | June 30, 2025 | Sept 30, 2024 | Change vs June 30, 2025 ($/%) | Change vs Sept 30, 2024 ($/%) | | :-------------------------------- | :------------ | :------------ | :------------ | :----------------------------- | :----------------------------- | | Beginning balance (in millions USD) | $2,008 | $2,014 | $2,125 | ($6) (0%) | ($117) (6%) | | Total net charge-offs (in millions USD) | 162 | 167 | 192 | (5) (3%) | (30) (16%) | | Total provision for loan and lease losses (in millions USD) | 126 | 161 | 146 | (35) (22%) | (20) (14%) | | Ending balance (in millions USD) | $1,972 | $2,008 | $2,079 | ($36) (2%) | ($107) (5%) | Total Allowance for Credit Losses (Sept 30, 2025 vs Sept 30, 2024) | Metric | Sept 30, 2025 | Sept 30, 2024 | Change vs Sept 30, 2024 ($/%) | | :-------------------------------- | :------------ | :------------ | :----------------------------- | | Ending balance (in millions USD) | $2,201 | $2,286 | ($85) (4%) | [Capital and Ratios](index=20&type=section&id=Capital%20and%20Ratios) This section details key capital ratios, including CET1, Tier 1, and Total Capital, showing strong and slightly increasing capital positions [Capital Ratios and Components](index=20&type=section&id=Capital%20Ratios%20and%20Components) As of Sept 30, 2025, CET1 capital ratio increased to **10.7%**, with Tier 1 and Total capital ratios remaining strong, indicating robust regulatory capital Capital Ratios (Sept 30, 2025 vs June 30, 2025 vs Sept 30, 2024) | Metric | Sept 30, 2025 | June 30, 2025 | Sept 30, 2024 | Change vs June 30, 2025 | Change vs Sept 30, 2024 | | :------------------------ | :------------ | :------------ | :------------ | :---------------------- | :---------------------- | | CET1 capital ratio | 10.7% | 10.6% | 10.6% | 0.1% | 0.1% | | Tier 1 capital ratio | 11.9% | 11.9% | 11.9% | 0.0% | 0.0% | | Total capital ratio | 13.9% | 13.8% | 13.9% | 0.1% | 0.0% | | Tier 1 leverage ratio | 9.4% | 9.4% | 9.4% | 0.0% | 0.0% | [Tangible Common Equity (Period-End)](index=20&type=section&id=Tangible%20Common%20Equity%20(Period-End)) Period-end tangible common equity increased 4% QoQ and 6% YoY to **$15.848 billion**, reflecting growth in common stockholders' equity Tangible Common Equity (Period-End) (Sept 30, 2025 vs Sept 30, 2024) | Metric | Sept 30, 2025 | Sept 30, 2024 | Change vs Sept 30, 2024 ($/%) | | :------------------------ | :------------ | :------------ | :----------------------------- | | Common stockholders' equity (in millions USD) | $23,718 | $22,820 | $898 (4%) | | Total tangible common equity (in millions USD) | $15,848 | $14,931 | $917 (6%) | [Non-GAAP Financial Measures and Reconciliations](index=21&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines and reconciles non-GAAP financial measures, labeled 'Underlying,' to GAAP, providing additional insights into core operational trends [Non-GAAP Financial Measures Overview](index=21&type=section&id=Non-GAAP%20Financial%20Measures%20Overview) The company uses 'Underlying' non-GAAP measures to exclude non-recurring items, aiding management's operational evaluation and investor insight - Non-GAAP financial measures, denoted as **'Underlying,'** exclude certain items not considered indicative of the company's ongoing financial performance. Management uses these measures to evaluate operating performance and make day-to-day operating decisions[27](index=27&type=chunk) - Investors are cautioned not to place undue reliance on non-GAAP financial measures and to consider them with the most directly comparable GAAP measures, as they have limitations as analytical tools and should not be considered in isolation[28](index=28&type=chunk) [Reconciliations of Key Non-GAAP Measures](index=22&type=section&id=Reconciliations%20of%20Key%20Non-GAAP%20Measures) This subsection provides detailed reconciliations for non-GAAP metrics like net income, efficiency ratio, and tangible book value, highlighting notable item impacts Reconciliation: Net Income, Underlying (3Q25 vs 3Q24) | Metric | 3Q25 | 3Q24 | Change ($/%) | | :-------------------------------- | :----- | :----- | :------------ | | Net income (GAAP, in millions USD) | $494 | $382 | $112 (29%) | | Add: Notable items, net of income tax benefit (in millions USD) | — | 10 | (10) (100%) | | Net income, Underlying (non-GAAP, in millions USD) | $494 | $392 | $102 (26%) | Reconciliation: Efficiency Ratio, Underlying (3Q25 vs 3Q24) | Metric | 3Q25 | 3Q24 | Change (bps) | | :-------------------------------- | :----- | :----- | :----------- | | Efficiency ratio (GAAP) | 63.03% | 66.23% | (320) bps | | Efficiency ratio, Underlying (non-GAAP) | 63.03% | 65.61% | (258) bps | Reconciliation: Tangible Book Value Per Common Share (3Q25 vs 3Q24) | Metric | 3Q25 | 3Q24 | Change ($/%) | | :-------------------------------- | :----- | :----- | :------------ | | Book value per common share (GAAP, USD) | $54.97 | $51.25 | $3.72 (7%) | | Tangible book value per common share (non-GAAP, USD) | $36.73 | $33.54 | $3.19 (10%) |

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Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes finding undervalued stocks based on financial ratios [3] - Growth Score focuses on companies with strong financial health and growth potential [4] - Momentum Score identifies stocks benefiting from current price trends [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +23.81% since 1988 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] - Stocks with lower ranks, even with good Style Scores, may still face downward price pressure due to negative earnings outlooks [10] Company Spotlight: Citizens Financial Group - Citizens Financial Group, headquartered in Providence, RI, offers a range of banking products and services [11] - The company currently holds a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating moderate potential [11] - Citizens Financial has a Value Style Score of B, supported by a forward P/E ratio of 13.19, making it attractive to value investors [12] - Recent upward revisions in earnings estimates suggest positive momentum, with the Zacks Consensus Estimate for fiscal 2025 at $3.81 per share, reflecting a +2.4% average earnings surprise [12]

Earnings Report - Citizens Financial Group, Inc. is set to release its third-quarter earnings results on October 15, with analysts expecting earnings of $1.03 per share, an increase from 79 cents per share in the same period last year [1] - The company projects quarterly revenue of $2.1 billion, compared to $1.9 billion a year earlier [1] Recent Performance - On July 17, Citizens Financial reported better-than-expected second-quarter financial results, leading to a 2% increase in share price, closing at $50.25 [2] Analyst Ratings - B of A Securities upgraded the stock from Neutral to Buy, raising the price target from $52 to $65 [4] - UBS maintained a Buy rating and increased the price target from $57 to $62 [4] - Evercore ISI Group maintained an Outperform rating and raised the price target from $57 to $61 [4] - Morgan Stanley upgraded the stock from Equal-Weight to Overweight, increasing the price target from $53 to $71 [4] - Citigroup maintained a Buy rating and raised the price target from $60 to $65 [4]

Core Insights - Citizens Financial Group, Inc. is set to release its third-quarter earnings results on October 15, with analysts expecting earnings of $1.03 per share, an increase from $0.79 per share in the same period last year [1] - The company projects quarterly revenue of $2.1 billion, up from $1.9 billion a year earlier [1] Recent Performance - On July 17, Citizens Financial reported better-than-expected second-quarter results, leading to a 2% increase in share price, closing at $50.25 [2] Analyst Ratings - B of A Securities upgraded the stock from Neutral to Buy, raising the price target from $52 to $65 [4] - UBS maintained a Buy rating and increased the price target from $57 to $62 [4] - Evercore ISI Group maintained an Outperform rating, raising the price target from $57 to $61 [4] - Morgan Stanley upgraded the stock from Equal-Weight to Overweight, increasing the price target from $53 to $71 [4] - Citigroup maintained a Buy rating and raised the price target from $60 to $65 [4]

Core Insights - Analysts expect Citizens Financial Group (CFG) to report quarterly earnings of $1.02 per share, reflecting a year-over-year increase of 29.1% and revenues of $2.1 billion, up 10.2% from the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised down by 0.9% in the last 30 days, indicating a reassessment by covering analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior and stock price performance [3] Key Financial Metrics - Analysts project an 'Efficiency Ratio' of 63.5%, improved from 66.2% in the same quarter last year [5] - The 'Book value per common share' is expected to reach $54.03, up from $51.25 a year ago [5] - The 'Return on average common equity' is estimated at 7.5%, compared to 6.1% in the same quarter last year [5] Charge-offs and Asset Balances - 'Net charge-offs' are expected to be $161.88 million, down from $192.00 million in the same quarter last year [6] - 'Average Balances - Total interest-earning assets' are projected at $197.27 billion, slightly up from $197.16 billion a year ago [6] Capital Ratios - 'Tangible book value per common share' is forecasted at $36.03, compared to $33.54 last year [7] - The 'Tier 1 Leverage Ratio' is expected to remain at 9.4%, consistent with the previous year [7] - The 'Tier 1 Capital Ratio' is projected at 11.9%, unchanged from the year-ago figure [7] Additional Metrics - Analysts forecast the 'Total Capital Ratio' to be 13.8%, slightly down from 13.9% last year [8] - 'Nonaccrual loans and leases' are estimated at $1.57 billion, down from $1.69 billion a year ago [8] - The 'Common Equity Tier 1 Capital Ratio (CET1 Capital Ratio)' is expected to remain at 10.6%, consistent with the previous year [8] - 'Total Noninterest Income' is projected to reach $608.73 million, up from $532.00 million last year [9] Stock Performance - Over the past month, shares of Citizens Financial Group have returned +0.2%, compared to a +3.5% change in the Zacks S&P 500 composite [9]

Core Insights - Citizens Financial Group, Inc. (CFG) is expected to report third-quarter 2025 results on October 15, 2025, with anticipated increases in earnings and revenues compared to the previous year [1][12][18] Financial Performance - CFG's net interest income (NII) is projected to rise by 3-4% in Q3 2025, supported by stable interest rates and controlled funding costs, with the Zacks Consensus Estimate at $1.49 billion, reflecting a 3.4% increase from the prior quarter [4][12] - The average interest-earning assets are estimated at $197.3 billion, indicating a slight rise from the previous quarter [6] - The consensus estimate for third-quarter revenues is pegged at $2.10 billion, representing a 10.2% increase from the year-ago figure [18] Income Sources - Non-interest income is expected to be impacted negatively by lower mortgage banking fees, with the Zacks Consensus Estimate at $60.9 million, a decline of 16.6% from the prior quarter [8] - Trust and investment services fees are projected to increase by 4% to $91.6 million due to heightened market activity [9] - Capital markets fees are expected to rise significantly by 24.3% to $130.6 million, supported by increased deal-making activities [11] Expenses and Asset Quality - CFG anticipates a rise in adjusted non-interest expenses by 1%-1.5% due to expansion and technological investments [14] - The Zacks Consensus Estimate for non-accrual loans is $1.57 billion, indicating a sequential rise of 3.3% [16] Earnings Expectations - CFG has an Earnings ESP of +0.09%, suggesting a favorable outlook for an earnings beat [17] - The consensus estimate for third-quarter earnings is $1.02 per share, reflecting a 29.1% increase from the year-ago figure [18]

Core Insights - Citizens Financial Group appointed Ted Swimmer as the head of commercial banking, effective immediately, succeeding Don McCree who served for 10 years [1][2] - Swimmer has been with Citizens since 2010 and was previously the head of capital markets and advisory [2] - McCree will continue to chair the bank's commercial-banking arm until his retirement in March 2026 [1] Leadership Transition - Ted Swimmer has built a strong Capital Markets and Advisory business at Citizens, providing clients with excellent ideas and solutions [2][3] - Citizens CEO Bruce Van Saun expressed confidence in Swimmer's leadership capabilities and looks forward to further growth in the Commercial Bank [3] McCree's Contributions - Don McCree is credited with building a well-positioned commercial bank that competes effectively with larger institutions while offering personalized services [4] - Under McCree's leadership, the bank has the largest M&A pipeline it has ever had, with several transactions expected to close in the second and third quarters [4] - The bank's focus on smaller, middle-market transactions has provided it with a level of immunity to larger market challenges [5]

Core Insights - Citizens Financial Group's (CFG) net interest income (NII) has shown steady growth with a CAGR of 5.3% from 2019 to 2024, but it declined to $2.83 billion in the first half of 2025 [1][7] - The Federal Reserve's recent rate cuts are expected to support NII growth, with a reduction of 25 basis points to 4.00–4.25% in September 2025, and potential for two more cuts by year-end [2] - Management projects NII growth of 3–5% in 2025 compared to $5.6 billion in 2024, with an expected improvement in net interest margin (NIM) from 2.85% to 3.0% [3][7] Peers' Performance - Flagstar Financial has experienced volatility in NII, with a four-year CAGR of 18.3% ending in 2024, and a 29.8% decline to $829 million in the first half of 2025, but expects NII between $1.70 billion and $1.75 billion for 2025 [5] - Webster Financial has maintained strong NII growth with a five-year CAGR of 19.6% ending in 2024, reporting $1.2 billion in NII for the first half of 2025, up 8.2% year over year, and projects NII of $2.47–$2.50 billion for 2025 [6]

Core Viewpoint - Citizens Financial Group, Inc. has announced the redemption of its outstanding 4.300% Fixed-Rate Subordinated Notes, which are due on December 3, 2025, with a redemption date set for November 3, 2025 [1][2]. Group 1: Redemption Details - The redemption price for the subordinated notes will be 100% of the principal amount plus any accrued and unpaid interest up to the redemption date [1]. - Holders of the notes will receive a notice regarding the redemption, including the redemption price and further instructions [2]. Group 2: Company Overview - Citizens Financial Group, Inc. is one of the oldest and largest financial institutions in the U.S., with total assets amounting to $218.3 billion as of June 30, 2025 [3]. - The company provides a wide range of banking products and services, including retail and commercial banking, wealth management, and small business offerings [3]. - Citizens operates approximately 3,000 ATMs and around 1,000 branches across 14 states and the District of Columbia [3].