Key insight: The new offices in California and Nevada represent Customers Bancorp's first presence west of the Rocky Mountains. Expert quote: "A lot of these bankers are realizing that brick-and-mortar is the best way for growing new relationships, for the originations along with the cross-selling products," Haberfeld Senior Executive Vice President Preston Afrank said.Supporting data: In addition to the new offices, Customers has also onboarded seven banking teams so far in 2025.Customers Bancorp is taking ...

Table of Contents (Exact name of Registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2025 Commission File Number 001-33653 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification Number) Ohio 31-0854434 Fifth Third Bancorp 38 Fountain Square Plaza Cincinnati, Ohio 45263 ...

Core Insights - Eastern Bankshares is focused on organic growth and post-merger integration, but remains open to evaluating future merger opportunities if they arise [1][6] - The bank's stock fell over 4.5% following comments from the CEO about potential mergers, amid pressure from an activist investor [2][9] Financial Performance - Eastern reported a third-quarter net income of $106.1 million, a significant increase from a loss of $6.2 million in the same quarter last year [10] - Earnings per share reached $0.53, exceeding consensus estimates of $0.37 [10] - Total revenue increased to $241.5 million from $203.4 million year-over-year, with net interest income rising to $200.2 million from $169.9 million [10] - Fee income also grew to $43.1 million, up from $33.5 million a year ago [10] - Wealth management assets under management reached a record high of $9.2 billion [11] - Total expenses decreased by approximately $20 million to $140.4 million, primarily due to reduced nonoperating costs [11] Activist Investor Pressure - HoldCo Asset Management published a report accusing Eastern's leadership of diluting shareholder value through overpayment in acquisitions, including the $490 million HarborOne Bancorp deal [3][4] - HoldCo suggested that Eastern should refrain from further acquisitions and return excess capital to shareholders, or face a potential proxy battle [4][5] - The presence of an activist investor may drive Eastern to improve operating performance, according to analysts [7]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Overall Performance & CEO Commentary](index=1&type=section&id=Overall%20Performance%20%26%20CEO%20Commentary) Fifth Third Bancorp reported strong Q3 2025 results, achieving its **fourth consecutive quarter of positive operating leverage** through robust revenue growth and expense discipline - Fifth Third Bancorp achieved its **fourth consecutive quarter of positive operating leverage** due to **strong revenue growth and expense discipline**[1](index=1&type=chunk) - CEO Tim Spence emphasized a **strong balance sheet, diverse revenue streams, and disciplined expense management**, with **continued expansion of net interest margin, improved pre-provision net revenue, and a strengthened efficiency ratio**[2](index=2&type=chunk) - Adjusted PPNR increased **6% sequentially** and **11% year-over-year**, marking the **highest annual growth rate in over two years**. The company repurchased **$300 million** of common stock and increased its quarterly common dividend by **8%** to **$0.40 per share**[3](index=3&type=chunk)[31](index=31&type=chunk) - The company's operating principles are **stability, profitability, and growth, in that order**, focusing on **high-quality deposits, diversified loan originations, recurring fee revenue, and operating scalability**[4](index=4&type=chunk)[5](index=5&type=chunk) [Key Financial Data & Highlights](index=1&type=section&id=Key%20Financial%20Data%20%26%20Highlights) Q3 2025 diluted EPS was **$0.91**, reflecting strong year-over-year improvements in net income, NII, and noninterest income, alongside stability and growth | Key Financial Data (3Q25 vs 2Q25 vs 3Q24) | 3Q25 | 2Q25 | 3Q24 | | :---------------------------------------- | :--- | :--- | :--- | | Net income available to common shareholders ($M) | **$608** | **$591** | **$532** | | Net interest income (U.S. GAAP) ($M) | **1,520** | **1,495** | **1,421** | | Noninterest income ($M) | **781** | **750** | **711** | | Noninterest expense ($M) | **1,267** | **1,264** | **1,244** | | Earnings per share, diluted | **$0.91** | **$0.88** | **$0.78** | | Tangible book value per share | **21.66** | **20.98** | **20.20** | | Average portfolio loans and leases ($M) | **$123,326** | **$123,071** | **$116,826** | | Average deposits ($M) | **164,754** | **163,575** | **167,196** | | Net charge-off ratio (b) | **1.09 %** | **0.45 %** | **0.48 %** | | Nonperforming asset ratio (c) | **0.65** | **0.72** | **0.62** | | Return on average assets | **1.21 %** | **1.20 %** | **1.06 %** | | Return on average common equity | **12.6** | **12.8** | **11.7** | | Return on average tangible common equity | **17.3** | **17.6** | **16.3** | | CET1 capital | **10.54** | **10.58** | **10.75** | | Net interest margin (a) | **3.13** | **3.12** | **2.90** | | Efficiency (a) | **54.9** | **56.2** | **58.2** | - Key Highlights: * **Stability:** **3% demand deposit growth** year-over-year; **interest-bearing liabilities costs** down for the fifth consecutive quarter; **Commercial NPAs improved 14%** from 2Q25; **Tangible book value per share grew 7%** year-over-year * **Profitability:** **Net interest margin expanded** for the 7th consecutive quarter, and **NII increased 7%** year-over-year; **Strong fee performance** driven by **28% growth in capital markets fees** and **9% growth in wealth and asset management revenue** from 2Q25; **Adjusted efficiency ratio of 54.1%**, an improvement of **180 bps** year-over-year * **Growth:** **6% loan growth** compared to 3Q24, accelerating to the **highest level in over two years**; **Consumer household growth of 3%**, including **7%** in the Southeast; **Assets under management of $77B**, up **12%** compared to 3Q24[1](index=1&type=chunk) [Financial Highlights](index=15&type=section&id=Financial%20Highlights) [Income Statement Data](index=15&type=section&id=Income%20Statement%20Data) Fifth Third Bancorp reported a **3%** sequential and **13%** year-over-year increase in net income for Q3 2025, reaching **$649 million**. Net income available to common shareholders also grew by **3%** sequentially and **14%** year-over-year to **$608 million**. Diluted EPS increased **3%** sequentially and **17%** year-over-year to **$0.91** | Income Statement Data ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :------------------------- | :------- | :------- | :------- | :--------- | :----------- | | Net interest income (GAAP) | **$1,520** | **$1,495** | **$1,421** | **2%** | **7%** | | Net interest income (FTE) | **1,525** | **1,500** | **1,427** | **2%** | **7%** | | Noninterest income | **781** | **750** | **711** | **4%** | **10%** | | Total revenue (FTE) | **2,306** | **2,250** | **2,138** | **2%** | **8%** | | Provision for credit losses | **197** | **173** | **160** | **14%** | **23%** | | Noninterest expense | **1,267** | **1,264** | **1,244** | — | **2%** | | Net income | **649** | **628** | **573** | **3%** | **13%** | | Net income available to common shareholders | **608** | **591** | **532** | **3%** | **14%** | | Diluted EPS | **$0.91** | **$0.88** | **$0.78** | **3%** | **17%** | [Common Share Data](index=15&type=section&id=Common%20Share%20Data) Cash dividends per common share increased **8%** sequentially and year-over-year to **$0.40**. Book value per share grew **3%** sequentially and **6%** year-over-year to **$29.26**, while market value per share increased **8%** sequentially and **4%** year-over-year to **$44.55**. Common shares outstanding decreased by **1%** sequentially and **2%** year-over-year | Common Share Data | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :---------------- | :------- | :------- | :------- | :--------- | :----------- | | Cash dividends per common share | **$0.40** | **$0.37** | **$0.37** | **8%** | **8%** | | Book value per share | **29.26** | **28.47** | **27.60** | **3%** | **6%** | | Market value per share | **44.55** | **41.13** | **42.84** | **8%** | **4%** | | Common shares outstanding (thousands) | **660,973** | **667,710** | **676,269** | **(1%)** | **(2%)** | | Market capitalization ($M) | **$29,446** | **$27,463** | **$28,971** | **7%** | **2%** | [Financial Ratios](index=15&type=section&id=Financial%20Ratios) Key financial ratios showed improvement, with Return on average assets increasing to **1.21%** and Return on average tangible common equity at **17.3%**. **Net interest margin (FTE)** expanded to **3.13%**, and the efficiency ratio (FTE) improved to **54.9%**, reflecting strong operational performance | Financial Ratios | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change (bps) | Yr/Yr Change (bps) | | :--------------- | :------- | :------- | :------- | :--------------- | :----------------- | | Return on average assets | **1.21%** | **1.20%** | **1.06%** | **1** | **15** | | Return on average common equity | **12.6%** | **12.8%** | **11.7%** | **(20)** | **90** | | Return on average tangible common equity | **17.3%** | **17.6%** | **16.3%** | **(30)** | **100** | | Net interest margin (FTE) | **3.13%** | **3.12%** | **2.90%** | **1** | **23** | | Efficiency (FTE) | **54.9%** | **56.2%** | **58.2%** | **(130)** | **(330)** | | Effective tax rate | **22.6%** | **22.2%** | **21.3%** | **40** | **130** | [Credit Quality](index=15&type=section&id=Credit%20Quality) Credit quality metrics showed a significant increase in net losses charged-off, up **144%** sequentially and **139%** year-over-year, primarily due to a specific **asset-backed finance commercial credit impairment**. The **net charge-off ratio** rose to **1.09%**. However, the nonperforming portfolio assets as a percent of portfolio loans and leases and OREO improved sequentially to **0.65%** | Credit Quality | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :------------- | :------- | :------- | :------- | :--------- | :----------- | | Net losses charged-off ($M) | **$339** | **$139** | **$142** | **144%** | **139%** | | Net losses charged-off as % of average portfolio loans and leases (annualized) | **1.09%** | **0.45%** | **0.48%** | **64 bps** | **61 bps** | | ALLL as % of portfolio loans and leases | **1.84%** | **1.97%** | **1.98%** | **(13) bps** | **(14) bps** | | ACL as % of portfolio loans and leases | **1.96%** | **2.09%** | **2.09%** | **(13) bps** | **(13) bps** | | Nonperforming portfolio assets as % of portfolio loans and leases and OREO | **0.65%** | **0.72%** | **0.62%** | **(7) bps** | **3 bps** | [Average Balances](index=15&type=section&id=Average%20Balances) Average loans and leases, including held for sale, remained stable sequentially and increased **6%** year-over-year to **$123,993 million**. Average total assets increased **1%** sequentially but decreased **1%** year-over-year. Transaction and core deposits remained stable sequentially but decreased **1%** year-over-year, while wholesale funding decreased **3%** sequentially and **7%** year-over-year | Average Balances ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :-------------------- | :------- | :------- | :------- | :--------- | :----------- | | Loans and leases, including held for sale | **$123,993** | **$123,657** | **$117,415** | — | **6%** | | Securities and other short-term investments | **69,507** | **69,025** | **78,421** | **1%** | **(11%)** | | Assets | **211,770** | **210,554** | **213,838** | **1%** | **(1%)** | | Transaction deposits | **151,669** | **150,881** | **153,154** | **1%** | **(1%)** | | Core deposits | **162,510** | **161,375** | **163,697** | **1%** | **(1%)** | | Wholesale funding | **21,821** | **22,423** | **23,415** | **(3%)** | **(7%)** | | Bancorp shareholders' equity | **21,216** | **20,670** | **20,251** | **3%** | **5%** | [Regulatory Capital Ratios](index=15&type=section&id=Regulatory%20Capital%20Ratios) Regulatory capital ratios showed slight sequential decreases but remained strong. The CET1 capital ratio was **10.54%**, Tier 1 risk-based capital was **11.60%**, and Total risk-based capital was **13.51%**. The Leverage ratio was **9.24%** | Regulatory Capital Ratios | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change (bps) | Yr/Yr Change (bps) | | :------------------------ | :------- | :------- | :------- | :--------------- | :----------------- | | CET1 capital | **10.54%** | **10.58%** | **10.75%** | **(4)** | **(21)** | | Tier 1 risk-based capital | **11.60%** | **11.85%** | **12.07%** | **(25)** | **(47)** | | Total risk-based capital | **13.51%** | **13.77%** | **14.13%** | **(26)** | **(62)** | | Leverage | **9.24%** | **9.42%** | **9.11%** | **(18)** | **13** | [Additional Metrics](index=15&type=section&id=Additional%20Metrics) Fifth Third Bancorp expanded its physical presence with **1,102** banking centers and **2,184** ATMs. Assets under management grew **5%** sequentially and **12%** year-over-year to **$77 billion**, while assets under care increased **4%** sequentially and **7%** year-over-year to **$681 billion** | Additional Metrics | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :----------------- | :------- | :------- | :------- | :--------- | :----------- | | Banking centers | **1,102** | **1,089** | **1,072** | **1%** | **3%** | | ATMs | **2,184** | **2,170** | **2,060** | **1%** | **6%** | | Full-time equivalent employees | **18,476** | **18,690** | **18,579** | **(1%)** | **(1%)** | | Assets under care ($B) | **$681** | **$657** | **$635** | **4%** | **7%** | | Assets under management ($B) | **77** | **73** | **69** | **5%** | **12%** | [Consolidated Statements of Income](index=16&type=section&id=Consolidated%20Statements%20of%20Income) [Net Interest Income (NII)](index=3&type=section&id=Net%20Interest%20Income%20(NII)) **Net interest income (FTE)** increased **2%** sequentially to **$1.525 billion**, primarily due to improved earning asset mix, fixed-rate asset repricing, and strategic management actions reducing **interest-bearing liabilities costs**. Year-over-year, **NII** increased **7%** and **Net Interest Margin (NIM)** expanded by **23 bps**, driven by similar factors | Net Interest Income (FTE; $M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :---------------------------- | :------- | :------- | :------- | :--------- | :----------- | | Interest Income | **$2,524** | **$2,489** | **$2,675** | **1%** | **(6%)** | | Interest Expense | **999** | **989** | **1,248** | **1%** | **(20%)** | | Net Interest Income (NII) | **$1,525** | **$1,500** | **$1,427** | **2%** | **7%** | | Average Yield/Rate Analysis | Sep 2025 | Jun 2025 | Sep 2024 | bps Change (Seq) | bps Change (Yr/Yr) | | :-------------------------- | :------- | :------- | :------- | :--------------- | :----------------- | | Yield on interest-earning assets | **5.18%** | **5.18%** | **5.43%** | — | **(25)** | | Rate paid on interest-bearing liabilities | **2.77%** | **2.78%** | **3.38%** | **(1)** | **(61)** | | Net interest rate spread | **2.41%** | **2.40%** | **2.05%** | **1** | **36** | | Net interest margin (NIM) | **3.13%** | **3.12%** | **2.90%** | **1** | **23** | - Sequential **NII** improvement primarily reflects improved earning asset mix, fixed-rate asset repricing, and strategic management actions decreasing the cost of **interest-bearing liabilities**[7](index=7&type=chunk) - Year-over-year **NII** increase was due to proactive deposit and wholesale funding management, decreasing **interest-bearing liabilities costs** by **61 bps**, improved earning asset mix, and fixed-rate asset repricing[8](index=8&type=chunk) [Noninterest Income](index=4&type=section&id=Noninterest%20Income) Total **noninterest income** increased **4%** sequentially to **$781 million** and **10%** year-over-year. Excluding certain items, **noninterest income** grew **7%** sequentially and **5%** year-over-year. This growth was primarily driven by a strong rebound in **capital markets fees** (up **28%** sequentially) and increases in **wealth and asset management revenue** (up **9%** sequentially and **11%** year-over-year) | Noninterest Income ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :---------------------- | :------- | :------- | :------- | :--------- | :----------- | | Wealth and asset management revenue | **$181** | **$166** | **$163** | **9%** | **11%** | | Commercial payments revenue | **157** | **152** | **154** | **3%** | **2%** | | Consumer banking revenue | **144** | **147** | **143** | **(2%)** | **1%** | | Capital markets fees | **115** | **90** | **111** | **28%** | **4%** | | Commercial banking revenue | **87** | **79** | **93** | **10%** | **(6%)** | | Mortgage banking net revenue | **58** | **56** | **50** | **4%** | **16%** | | Other noninterest income (loss) | **29** | **44** | **(13)** | **(34%)** | NM | | Securities gains, net | **10** | **16** | **10** | **(38%)** | — | | Total noninterest income | **$781** | **$750** | **$711** | **4%** | **10%** | | Noninterest Income excluding certain items ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :---------------------------------------------- | :------- | :------- | :------- | :--------- | :----------- | | Noninterest income (U.S. GAAP) | **$781** | **$750** | **$711** | | | | Interchange litigation matters | **18** | **1** | **47** | | | | Securities (gains) losses, net | **(10)** | **(16)** | **(10)** | | | | Noninterest income excluding certain items (a) | **$789** | **$735** | **$748** | **7%** | **5%** | - Sequential growth in **wealth and asset management revenue** was driven by personal asset management and brokerage fees. **Capital markets fees** saw a **strong rebound** from **loan syndications and M&A advisory revenue**[11](index=11&type=chunk) - Year-over-year, **wealth and asset management revenue** increased due to **12% AUM growth**. Mortgage banking net revenue increased **16%** due to the non-recurrence of **MSR net valuation adjustments** from the prior year[12](index=12&type=chunk) [Noninterest Expense](index=5&type=section&id=Noninterest%20Expense) Total noninterest expense remained stable sequentially at **$1.267 billion** and increased **2%** year-over-year. Excluding certain items and **non-qualified deferred compensation**, noninterest expense increased **2%** sequentially due to higher equipment and occupancy costs, partially offset by lower marketing expense. Year-over-year, it increased **3%** primarily from equipment, occupancy, marketing, and technology expenses | Noninterest Expense ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :----------------------- | :------- | :------- | :------- | :--------- | :----------- | | Compensation and benefits | **$685** | **$698** | **$690** | **(2%)** | **(1%)** | | Technology and communications | **128** | **126** | **121** | **2%** | **6%** | | Net occupancy expense | **89** | **83** | **81** | **7%** | **10%** | | Equipment expense | **44** | **41** | **38** | **7%** | **16%** | | Loan and lease expense | **39** | **36** | **34** | **8%** | **15%** | | Marketing expense | **34** | **43** | **26** | **(21%)** | **31%** | | Card and processing expense | **22** | **22** | **22** | — | — | | Other noninterest expense | **226** | **215** | **232** | **5%** | **(3%)** | | Total noninterest expense | **$1,267** | **$1,264** | **$1,244** | — | **2%** | | Noninterest Expense excluding certain item(s) ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :------------------------------------------------- | :------- | :------- | :------- | :--------- | :----------- | | Noninterest expense (U.S. GAAP) | **$1,267** | **$1,264** | **$1,244** | | | | Interchange litigation matters | **(9)** | — | **(10)** | | | | Severance expense | — | **(15)** | **(9)** | | | | FDIC special assessment | **6** | — | — | | | | Noninterest expense excluding certain item(s) (a) | **$1,264** | **$1,249** | **$1,225** | **1%** | **3%** | | Non-qualified deferred compensation (expense)/benefit | **(11)** | **(16)** | **(10)** | | | | Noninterest expense excluding certain item(s) and non-qualified (a) deferred compensation | **$1,253** | **$1,233** | **$1,215** | **2%** | **3%** | - Expenses related to the mark-to-market impact of **non-qualified deferred compensation** were largely offset in net securities gains/losses through **noninterest income**[16](index=16&type=chunk) [Consolidated Balance Sheets](index=18&type=section&id=Consolidated%20Balance%20Sheets) [Average Interest-Earning Assets](index=6&type=section&id=Average%20Interest-Earning%20Assets) Total average portfolio loans and leases remained stable sequentially at **$123 billion**, increasing **6%** year-over-year. Commercial loans decreased **1%** sequentially due to declines in commercial mortgage and construction loans, while consumer loans increased **2%** sequentially, driven by indirect secured consumer and home equity loans | Average Portfolio Loans and Leases ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :------------------------------------ | :------- | :------- | :------- | :--------- | :----------- | | Commercial and industrial loans | **$54,170** | **$54,075** | **$51,615** | — | **5%** | | Commercial mortgage loans | **12,027** | **12,410** | **11,488** | **(3%)** | **5%** | | Commercial construction loans | **5,541** | **5,810** | **5,981** | **(5%)** | **(7%)** | | Commercial leases | **3,177** | **3,120** | **2,685** | **2%** | **18%** | | Total commercial loans and leases | **$74,915** | **$75,415** | **$71,769** | **(1%)** | **4%** | | Residential mortgage loans | **$17,656** | **$17,615** | **$17,031** | — | **4%** | | Home equity | **4,579** | **4,383** | **4,018** | **4%** | **14%** | | Indirect secured consumer loans | **17,729** | **17,248** | **15,680** | **3%** | **13%** | | Credit card | **1,678** | **1,659** | **1,708** | **1%** | **(2%)** | | Solar energy installation loans | **4,355** | **4,268** | **3,990** | **2%** | **9%** | | Other consumer loans | **2,414** | **2,483** | **2,630** | **(3%)** | **(8%)** | | Total consumer loans | **$48,411** | **$47,656** | **$45,057** | **2%** | **7%** | | Total average portfolio loans and leases | **$123,326** | **$123,071** | **$116,826** | — | **6%** | - Average securities decreased **3%** sequentially and **4%** year-over-year. Average other short-term investments increased **17%** sequentially but decreased **31%** year-over-year[19](index=19&type=chunk) [End of Period Interest-Earning Assets](index=7&type=section&id=End%20of%20Period%20Interest-Earning%20Assets) Period-end total portfolio loans and leases increased **1%** sequentially and **6%** year-over-year to **$123.1 billion**. Commercial portfolio loans remained stable sequentially but grew **5%** year-over-year, primarily from C&I loans. Consumer portfolio loans increased **1%** sequentially and **7%** year-over-year, driven by indirect secured consumer, home equity, and residential mortgage loans | End of Period Portfolio Loans and Leases ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :-------------------------------------------- | :------- | :------- | :------- | :--------- | :----------- | | Total commercial loans and leases | **$74,423** | **$74,152** | **$71,130** | — | **5%** | | Total consumer loans | **48,707** | **48,244** | **45,538** | **1%** | **7%** | | Total portfolio loans and leases | **$123,130** | **$122,396** | **$116,668** | **1%** | **6%** | - Period-end securities decreased **4%** sequentially and **7%** year-over-year. Other short-term investments increased **32%** sequentially but decreased **21%** year-over-year[22](index=22&type=chunk) [Average Deposits](index=7&type=section&id=Average%20Deposits) Total average deposits increased **1%** sequentially to **$165 billion**, driven by growth in money market and demand deposits, partially offset by declines in savings and interest checking. Demand deposits showed growth for the second consecutive quarter, reflecting a strategic focus on deposit mix. Year-over-year, total average deposits decreased **1%** | Average Deposits ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :-------------------- | :------- | :------- | :------- | :--------- | :----------- | | Demand | **$41,235** | **$40,885** | **$40,020** | **1%** | **3%** | | Interest checking | **56,624** | **56,738** | **58,605** | — | **(3%)** | | Savings | **16,376** | **16,962** | **17,272** | **(3%)** | **(5%)** | | Money market | **37,434** | **36,296** | **37,257** | **3%** | — | | Total transaction deposits | **$151,669** | **$150,881** | **$153,154** | **1%** | **(1%)** | | CDs $250,000 or less | **10,841** | **10,494** | **10,543** | **3%** | **3%** | | Total core deposits | **$162,510** | **$161,375** | **$163,697** | **1%** | **(1%)** | | CDs over $250,000 | **2,244** | **2,200** | **3,499** | **2%** | **(36%)** | | Total average deposits | **$164,754** | **$163,575** | **$167,196** | **1%** | **(1%)** | - The period-end portfolio loan-to-core deposit ratio was **75%** in the current quarter, compared to **76%** in the prior quarter and **71%** in the year-ago quarter[24](index=24&type=chunk) [Average Wholesale Funding](index=8&type=section&id=Average%20Wholesale%20Funding) Average wholesale funding decreased **3%** sequentially to **$22 billion**, primarily due to reductions in long-term debt and FHLB advances. Year-over-year, it decreased **7%**, mainly from lower long-term debt and CDs over **$250,000**, including brokered deposits | Average Wholesale Funding ($M) | Sep 2025 | Jun 2025 | Sep 2024 | Seq Change | Yr/Yr Change | | :----------------------------- | :------- | :------- | :------- | :--------- | :----------- | | CDs over $250,000 | **$2,244** | **$2,200** | **$3,499** | **2%** | **(36%)** | | Federal funds purchased | **198** | **206** | **176** | **(4%)** | **13%** | | Securities sold under repurchase agreements | **376** | **353** | **396** | **7%** | **(5%)** | | FHLB advances | **4,920** | **4,976** | **2,576** | **(1%)** | **91%** | | Derivative collateral and other secured borrowings | **82** | **89** | **52** | **(8%)** | **58%** | | Long-term debt | **14,001** | **14,599** | **16,716** | **(4%)** | **(16%)** | | Total average wholesale funding | **$21,821** | **$22,423** | **$23,415** | **(3%)** | **(7%)** | [Consolidated Statements of Changes in Equity](index=20&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) [Equity Changes](index=20&type=section&id=Equity%20Changes) Total equity at the end of Q3 2025 was **$21,107 million**, a slight decrease from the prior quarter but an increase from the year-ago quarter. Comprehensive income for the quarter was **$919 million**, driven by net income and changes in unrealized gains on available-for-sale debt securities and cash flow hedges. The company also repurchased **$303 million** in shares and redeemed **$350 million** of preferred stock | Equity Changes ($M) | Sep 2025 | Sep 2024 | Yr to Date Sep 2025 | Yr to Date Sep 2024 | | :------------------ | :------- | :------- | :------------------ | :------------------ | | Total Equity, Beginning | **$21,124** | **$19,226** | **$19,645** | **$19,172** | | Net income | **649** | **573** | **1,791** | **1,694** | | Comprehensive income | **919** | **2,028** | **3,151** | **2,735** | | Cash dividends declared: Common stock | **(269)** | **(254)** | **(770)** | **(740)** | | Cash dividends declared: Preferred stock | **(37)** | **(41)** | **(110)** | **(121)** | | Shares acquired for treasury | **(303)** | **(202)** | **(529)** | **(327)** | | Redemption of preferred stock | **(350)** | — | **(350)** | — | | Total Equity, Ending | **$21,107** | **$20,784** | **$21,107** | **$20,784** | - Changes in unrealized gains on available-for-sale debt securities contributed **$230 million** to other comprehensive income in Q3 2025[53](index=53&type=chunk) [Average Balance Sheets and Yield/Rate Analysis](index=21&type=section&id=Average%20Balance%20Sheets%20and%20Yield%2FRate%20Analysis) [Average Interest-Earning Assets and Yields](index=21&type=section&id=Average%20Interest-Earning%20Assets%20and%20Yields) Average interest-earning assets remained stable sequentially at **$193.5 billion**, with an average yield of **5.18%**. Total loans and leases had an average yield of **6.12%**, stable sequentially but down from **6.48%** year-over-year. Commercial loans and leases yield decreased **4 bps** sequentially and **69 bps** year-over-year, while consumer loans yield increased **9 bps** sequentially and **15 bps** year-over-year | Average Interest-Earning Assets ($M) | Sep 2025 Balance | Sep 2025 Yield/Rate | Jun 2025 Balance | Jun 2025 Yield/Rate | Sep 2024 Balance | Sep 2024 Yield/Rate | | :----------------------------------- | :--------------- | :------------------ | :--------------- | :------------------ | :--------------- | :------------------ | | Total commercial loans and leases | **74,957** | **6.22%** | **75,460** | **6.26%** | **71,786** | **6.91%** | | Total consumer loans | **49,036** | **5.96%** | **48,197** | **5.87%** | **45,629** | **5.81%** | | Total loans and leases | **123,993** | **6.12%** | **123,657** | **6.11%** | **117,415** | **6.48%** | | Securities | **54,592** | **3.25%** | **56,243** | **3.29%** | **56,707** | **3.25%** | | Other short-term investments | **14,915** | **4.43%** | **12,782** | **4.56%** | **21,714** | **5.47%** | | Total interest-earning assets | **193,500** | **5.18%** | **192,682** | **5.18%** | **195,836** | **5.43%** | [Average Interest-Bearing Liabilities and Rates](index=21&type=section&id=Average%20Interest-Bearing%20Liabilities%20and%20Rates) Average interest-bearing liabilities remained stable sequentially at **$143.1 billion**, with an average rate of **2.77%**, a **1 bp** sequential decrease and a **61 bps** year-over-year decrease. This reduction was primarily driven by lower rates on interest checking, savings, and money market deposits, as well as CDs over **$250,000** and long-term debt | Average Interest-Bearing Liabilities ($M) | Sep 2025 Balance | Sep 2025 Yield/Rate | Jun 2025 Balance | Jun 2025 Yield/Rate | Sep 2024 Balance | Sep 2024 Yield/Rate | | :---------------------------------------- | :--------------- | :------------------ | :--------------- | :------------------ | :--------------- | :------------------ | | Interest checking deposits | **$56,624** | **2.72%** | **$56,738** | **2.69%** | **$58,605** | **3.38%** | | Savings deposits | **16,376** | **0.46%** | **16,962** | **0.48%** | **17,272** | **0.71%** | | Money market deposits | **37,434** | **2.40%** | **36,296** | **2.40%** | **37,257** | **3.06%** | | CDs $250,000 or less | **10,841** | **3.46%** | **10,494** | **3.52%** | **10,543** | **4.07%** | | Total interest-bearing core deposits | **121,275** | **2.38%** | **120,490** | **2.36%** | **123,677** | **2.97%** | | CDs over $250,000 | **2,244** | **4.00%** | **2,200** | **4.07%** | **3,499** | **5.08%** | | Total interest-bearing deposits | **123,519** | **2.41%** | **122,690** | **2.39%** | **127,176** | **3.03%** | | Federal funds purchased | **198** | **4.35%** | **206** | **4.39%** | **176** | **5.34%** | | FHLB advances | **4,920** | **4.51%** | **4,976** | **4.59%** | **2,576** | **5.59%** | | Long-term debt | **14,001** | **5.31%** | **14,599** | **5.36%** | **16,716** | **5.65%** | | Total interest-bearing liabilities | **143,096** | **2.77%** | **142,913** | **2.78%** | **147,092** | **3.38%** | | Ratios (FTE) | Sep 2025 | Jun 2025 | Sep 2024 | | :----------- | :------- | :------- | :------- | | Net interest margin | **3.13%** | **3.12%** | **2.90%** | | Net interest rate spread | **2.41%** | **2.40%** | **2.05%** | | Interest-bearing liabilities to interest-earning assets | **73.95%** | **74.17%** | **75.11%** | [Summary of Loans and Leases](index=23&type=section&id=Summary%20of%20Loans%20and%20Leases) [Average Portfolio Loans and Leases](index=23&type=section&id=Average%20Portfolio%20Loans%20and%20Leases) Average portfolio loans and leases remained stable sequentially at **$123.3 billion**, showing a **6%** increase year-over-year. Commercial loans and leases decreased **1%** sequentially but grew **4%** year-over-year, while consumer loans increased **2%** sequentially and **7%** year-over-year, driven by indirect secured consumer and home equity loans | Average Portfolio Loans and Leases ($M) | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :------------------------------------ | :------- | :------- | :------- | :------- | :------- | | Total commercial loans and leases | **74,915** | **75,415** | **74,676** | **71,963** | **71,769** | | Total consumer loans | **48,411** | **47,656** | **46,596** | **45,897** | **45,057** | | Total average portfolio loans and leases | **$123,326** | **$123,071** | **$121,272** | **$117,860** | **$116,826** | [End of Period Portfolio Loans and Leases](index=23&type=section&id=End%20of%20Period%20Portfolio%20Loans%20and%20Leases) End of period portfolio loans and leases increased **1%** sequentially and **6%** year-over-year to **$123.1 billion**. Commercial loans and leases remained stable sequentially but increased **5%** year-over-year, while consumer loans increased **1%** sequentially and **7%** year-over-year | End of Period Portfolio Loans and Leases ($M) | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :-------------------------------------------- | :------- | :------- | :------- | :------- | :------- | | Total commercial loans and leases | **74,423** | **74,152** | **75,137** | **73,293** | **71,130** | | Total consumer loans | **48,707** | **48,244** | **47,054** | **46,498** | **45,538** | | Total portfolio loans and leases | **$123,130** | **$122,396** | **$122,191** | **$119,791** | **$116,668** | [Loans and Leases Serviced for Others](index=23&type=section&id=Loans%20and%20Leases%20Serviced%20for%20Others) Total loans and leases serviced for others decreased to **$93.3 billion** in Q3 2025, a **1.5%** sequential decrease and a **6.2%** year-over-year decrease, primarily driven by a reduction in residential mortgage loans serviced for others | Loans and Leases Serviced for Others ($M) | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :---------------------------------------- | :------- | :------- | :------- | :------- | :------- | | Residential mortgage loans | **89,639** | **91,201** | **92,769** | **94,225** | **95,808** | | Total loans and leases serviced for others | **93,261** | **94,720** | **96,285** | **97,660** | **99,352** | [Regulatory Capital](index=24&type=section&id=Regulatory%20Capital) [Regulatory Capital Ratios](index=11&type=section&id=Regulatory%20Capital%20Ratios) Fifth Third Bancorp's CET1 capital ratio decreased **4 bps** sequentially to **10.54%**, primarily due to **risk-weighted asset growth** and **capital returns to shareholders**, including **$300 million** in **share repurchases** and an **8%** increase in **common dividends**. The company also redeemed all outstanding **Series L Preferred Stock** | Regulatory Capital Ratios | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :------------------------ | :------- | :------- | :------- | :------- | :------- | | CET1 capital | **10.54%** | **10.58%** | **10.43%** | **10.57%** | **10.75%** | | Tier 1 risk-based capital | **11.60%** | **11.85%** | **11.71%** | **11.86%** | **12.07%** | | Total risk-based capital | **13.51%** | **13.77%** | **13.63%** | **13.86%** | **14.13%** | | Leverage | **9.24%** | **9.42%** | **9.23%** | **9.22%** | **9.11%** | - During Q3 2025, Fifth Third repurchased **$300 million** of its common stock and increased its quarterly cash common dividend by **$0.03**, or **8%**, to **$0.40 per share**[31](index=31&type=chunk) - On September 30, 2025, Fifth Third redeemed all of its outstanding **4.50% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series L**[31](index=31&type=chunk) [Summary of Credit Loss Experience](index=25&type=section&id=Summary%20of%20Credit%20Loss%20Experience) [Provision for Credit Losses and ACL](index=9&type=section&id=Provision%20for%20Credit%20Losses%20and%20ACL) The provision for credit losses totaled **$197 million** in Q3 2025. The **Allowance for Credit Losses (ACL) ratio** decreased **13 bps** sequentially and year-over-year to **1.96%** of total portfolio loans and leases. However, the **ACL coverage ratio** increased to **314%** of nonperforming portfolio loans and leases and **302%** of nonperforming portfolio assets | Credit Loss Metrics ($M) | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :----------------------- | :------- | :------- | :------- | :------- | :------- | | Provision for loan and lease losses | **192** | **167** | **168** | **183** | **159** | | Provision for (benefit from) the reserve for unfunded commitments | **5** | **6** | **6** | **(4)** | **1** | | Total provision for credit losses | **$197** | **$173** | **$174** | **$179** | **$160** | | ALLL, ending | **$2,265** | **$2,412** | **$2,384** | **$2,352** | **$2,305** | | Reserve for unfunded commitments, ending | **$151** | **$146** | **$140** | **$134** | **$138** | | Total allowance for credit losses (ACL) | **$2,416** | **$2,558** | **$2,524** | **$2,486** | **$2,443** | | ACL Ratios | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :--------- | :------- | :------- | :------- | :------- | :------- | | As a % of portfolio loans and leases | **1.96%** | **2.09%** | **2.07%** | **2.08%** | **2.09%** | | As a % of nonperforming portfolio loans and leases | **314%** | **300%** | **261%** | **302%** | **356%** | | As a % of nonperforming portfolio assets | **302%** | **289%** | **253%** | **291%** | **337%** | [Net Charge-Offs (NCOs)](index=9&type=section&id=Net%20Charge-Offs%20(NCOs)) **Net charge-offs** totaled **$339 million** in Q3 2025, a significant increase of **$200 million** from the prior quarter, primarily due to a **$178 million** impairment related to an **asset-backed finance commercial credit**. The **net charge-off ratio** increased **64 bps** sequentially to **1.09%**. **Commercial NCO ratio** rose to **1.46%**, while **consumer NCO ratio** decreased **4 bps** sequentially to **0.52%** | Net Losses Charged-Off ($M) | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :-------------------------- | :------- | :------- | :------- | :------- | :------- | | Total losses charged-off | **$(382)** | **$(194)** | **$(173)** | **$(175)** | **$(183)** | | Total recoveries of losses previously charged-off | **43** | **55** | **37** | **39** | **41** | | Total net losses charged-off | **$(339)** | **$(139)** | **$(136)** | **$(136)** | **$(142)** | | Net Charge-Off Ratios | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :-------------------- | :------- | :------- | :------- | :------- | :------- | | Net charge-off ratio (b) | **1.09%** | **0.45%** | **0.46%** | **0.46%** | **0.48%** | | Commercial NCO ratio | **1.46%** | **0.38%** | **0.35%** | **0.32%** | **0.40%** | | Consumer NCO ratio | **0.52%** | **0.56%** | **0.63%** | **0.68%** | **0.62%** | - The significant increase in **net charge-offs** in Q3 2025 included **$178 million** related to the impairment of an **asset-backed finance commercial credit**[27](index=27&type=chunk) [Asset Quality](index=26&type=section&id=Asset%20Quality) [Nonperforming Assets and Delinquent Loans](index=9&type=section&id=Nonperforming%20Assets%20and%20Delinquent%20Loans) Total **nonperforming portfolio loans and leases (NPLs)** decreased sequentially to **$768 million**, resulting in an **NPL ratio** of **0.62%**. Total **nonperforming portfolio assets (NPAs)** also decreased sequentially to **$801 million**, with an **NPA ratio** of **0.65%**. Both **NPL** and **NPA ratios** improved compared to the prior quarter but were slightly higher than the year-ago quarter | Nonperforming Assets ($M) | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :------------------------ | :------- | :------- | :------- | :------- | :------- | | Total nonaccrual portfolio loans and leases (NPLs) | **$768** | **$853** | **$966** | **$823** | **$686** | | Repossessed property | **12** | **8** | **9** | **9** | **11** | | OREO | **21** | **25** | **21** | **21** | **28** | | Total nonperforming portfolio loans and leases and OREO (NPAs) | **$801** | **$886** | **$996** | **$853** | **$725** | | Nonaccrual loans held for sale | **4** | **27** | **21** | **7** | **8** | | Total nonperforming assets | **$805** | **$913** | **$1,017** | **$860** | **$733** | | Nonperforming Ratios | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :------------------- | :------- | :------- | :------- | :------- | :------- | | NPL ratio | **0.62%** | **0.70%** | **0.79%** | **0.69%** | **0.59%** | | NPA ratio | **0.65%** | **0.72%** | **0.81%** | **0.71%** | **0.62%** | | Delinquent Loans (90 days past due, accrual; $M) | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :----------------------------------------------- | :------- | :------- | :------- | :------- | :------- | | Total commercial loans and leases | **$2** | **$8** | **$8** | **$6** | **$14** | | Total consumer loans | **27** | **26** | **25** | **26** | **26** | | Total loans and leases 90 days past due (accrual) | **$29** | **$34** | **$33** | **$32** | **$40** | [Non-GAAP Reconciliation](index=27&type=section&id=Non-GAAP%20Reconciliation) [Purpose of Non-GAAP Measures](index=36&type=section&id=Purpose%20of%20Non-GAAP%20Measures) Management uses various non-GAAP financial measures, such as FTE adjustments for **tax-favored income**, **tangible equity measures** to exclude intangible items, and **adjusted metrics** to remove significant or unusual transactions. These measures provide useful information for evaluating operating performance, capital utilization, and comparability with industry peers, complementing GAAP measures without replacing them - Non-GAAP measures like '**net interest income (FTE)**' and '**net interest margin (FTE)**' adjust for the **tax-favored status** of certain income, providing a relevant comparison between taxable and non-taxable amounts[67](index=67&type=chunk) - **Tangible equity measures** (e.g., '**tangible book value per share**', '**return on average tangible common equity**') are used to evaluate performance without the impact of intangible items, enhancing comparability with other companies[68](index=68&type=chunk) - **Adjusted noninterest income, noninterest expense, and pre-provision net revenue (PPNR) metrics** are used to remove the effects of significant, unusual, or large transactions not indicative of ongoing financial performance, improving period-to-period comparability[69](index=69&type=chunk)[70](index=70&type=chunk) - Management also considers **tangible common equity ratios** (including and excluding AOCI) to assess capital utilization and adequacy, complementing regulatory capital ratios[71](index=71&type=chunk) [Non-GAAP Reconciliations](index=37&type=section&id=Non-GAAP%20Reconciliations) The report provides detailed reconciliations for various non-GAAP measures, including **net interest income (FTE)**, tangible net income, tangible common equity, adjusted noninterest income, adjusted noninterest expense, and adjusted pre-provision net revenue. These reconciliations illustrate the adjustments made for items such as taxable equivalent adjustments, intangible amortization, interchange litigation matters, severance, and FDIC special assessments | Non-GAAP Reconciliation (Selected Items; $M) | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | | :------------------------------------------- | :------- | :------- | :------- | :------- | :------- | | Net interest income (GAAP) | **$1,520** | **$1,495** | **$1,437** | **$1,437** | **$1,421** | | Add: Taxable equivalent adjustment | **5** | **5** | **5** | **6** | **6** | | Net interest income (FTE) | **1,525** | **1,500** | **1,442** | **1,443** | **1,427** | | Net income available to common shareholders | **608** | **591** | **478** | **582** | **532** | | Add: Intangible amortization, net of tax | **5** | **5** | **6** | **7** | **7** | | Tangible net income available to common shareholders | **613** | **596** | **484** | **589** | **539** | | Total Bancorp shareholders' equity | **21,107** | **21,124** | **20,403** | **19,645** | **20,784** | | Less: Preferred stock | **(1,770)** | **(2,116)** | **(2,116)** | **(2,116)** | **(2,116)** | | Goodwill | **(4,947)** | **(4,918)** | **(4,918)** | **(4,918)** | **(4,918)** | | Intangible assets | **(76)** | **(75)** | **(82)** | **(90)** | **(98)** | | Tangible common equity, including AOCI | **14,314** | **14,015** | **13,287** | **12,521** | **13,652** | | Non-GAAP Reconciliation (Adjustments; $M) | Sep 2025 | Jun 2025 | Sep 2024 | | :---------------------------------------- | :------- | :------- | :------- | | Net income (GAAP) | **$649** | **$628** | **$573** | | Adjustments (pre-tax items): | | | | | Interchange litigation matters | **27** | **1** | **57** | | Severance expense | — | **15** | **9** | | Non-qualified deferred compensation expense/(benefit) | **11** | **16** | **10** | | Securities (gains)/losses | **(10)** | **(16)** | **(10)** | | FDIC special assessment | **(6)** | — | — | | Adjustments, after-tax | **16** | **12** | **51** | | Adjusted net income | **665** | **640** | **624** | | Efficiency ratio (FTE) | **54.9%** | **56.2%** | **58.2%** | | Adjusted efficiency ratio | **54.1%** | **55.2%** | **55.9%** | [Segment Presentation](index=30&type=section&id=Segment%20Presentation) [Performance by Segment (Q3 2025)](index=30&type=section&id=Performance%20by%20Segment%20(Q3%202025)) In Q3 2025, **Consumer and Small Business Banking** was the largest contributor to **Net Interest Income (FTE)** at **$1,082 million**, followed by **Commercial Banking** at **$594 million**. **Commercial Banking** reported the highest **noninterest income** at **$357 million**. **Income before income taxes (FTE)** was strongest in **Consumer and Small Business Banking** (**$665 million**) and **Commercial Banking** (**$251 million**), while **General Corporate and Other** reported a loss | Segment Performance (Q3 2025; $M) | Commercial Banking | Consumer and Small Business Banking | Wealth and Asset Management | General Corporate and Other | Total | | :-------------------------------- | :----------------- | :---------------------------------- | :-------------------------- | :-------------------------- | :---- | | Net interest income (FTE) | **$594** | **$1,082** | **$55** | **$(206)** | **$1,525** | | Provision for credit losses | **(246)** | **(73)** | — | **122** | **(197)** | | Noninterest income | **357** | **309** | **109** | **6** | **781** | | Noninterest expense | **(454)** | **(653)** | **(93)** | **(67)** | **(1,267)** | | Income (loss) before income taxes (FTE) | **$251** | **$665** | **$71** | **$(145)** | **$842** | - During Q1 2025, the Bancorp **realigned its reporting structure**, moving certain business banking customer relationships and personnel from **Commercial Banking** to **Consumer and Small Business Banking**, with prior periods adjusted for comparability[77](index=77&type=chunk)

Core Viewpoint - Regional bank mergers and acquisitions are increasing, but Citizens Financial Group is not interested in pursuing M&A opportunities, focusing instead on organic growth and internal investments [1][12]. Company Focus and Strategy - Citizens Financial Group, with $222.7 billion in assets, is concentrating on expanding its private banking division and enhancing its presence in markets like New York City [2]. - The bank's CEO emphasized that excess capital would be better utilized for share repurchases rather than acquisitions, with $475 million spent on buybacks in the first three quarters of the year [3]. - The bank reported a net income of $494 million for Q3, a 29% increase year-over-year, with earnings per share of $1.05, surpassing analyst expectations [7]. Financial Performance - Revenues for Q3 reached $2.1 billion, up from $1.9 billion in the same quarter last year [7]. - Fee income rose 18% year-over-year to $630 million, while net interest income increased by 9% to $1.5 billion [9]. - The capital markets business was highlighted as a key growth area, achieving record fees driven by M&A, debt underwriting, and loan syndication [8]. Future Goals and Initiatives - Citizens aims for a return on tangible common equity of 16-18% over the next three years, with the current metric at 11.7% [10]. - The bank is implementing a multiyear expense-cutting program called "Reimagine the Bank," which will leverage AI and technology to improve customer service [10][13]. - Leadership changes are underway, with a focus on refreshing the executive team to drive future growth [14].

Core Insights - Goldman Sachs is planning potential job cuts and a hiring slowdown through the end of the year, as indicated in an internal memo [1][2] - The firm is focusing on leveraging artificial intelligence (AI) to enhance internal productivity, under a strategic initiative named "OneGS 3.0" [1][2][3] AI Strategy - The internal memo outlines critical areas for AI enhancement, including client management and operations, with leadership expressing confidence in AI's potential to unlock significant productivity gains [2][3] - The strategic push towards AI indicates a consolidation of operations and a commitment to technology-driven efficiency [3] Financial Performance - Goldman Sachs reported a strong third-quarter profit, exceeding Wall Street expectations, primarily driven by a surge in its investment banking division and increased revenue from managing client assets [4][5] - Investment banking fees rose by 42% year-on-year, reaching $2.66 billion for the quarter ended September 30 [4][5] - The overall quarterly profit was $4.1 billion, translating to $12.25 per share, surpassing the consensus expectation of $11 per share [5] Mergers and Acquisitions - The firm has advised on $1 trillion in announced mergers and acquisitions year-to-date, outpacing its nearest competitor by $220 billion [6] - Notable advisory deals include Electronic Arts' $55 billion sale and Holcim's $26 billion spin-off of its North American business [6][7] Market Position - The CEO highlighted the strength of the client franchise and the execution of strategic priorities in an improved market environment [7] - The CFO noted that the quarter-end deals backlog is at its highest level in three years, indicating strong market positioning [9]

Core Insights - Fifth Third has been recognized in the 2026 Forbes Best Customer Service List, marking the third consecutive year of such recognition [1] Company Commitment - The company emphasizes its commitment to customer-centric service, aiming to deliver the best possible experience [1]

Market Overview - U.S. equities experienced a pullback on October 7, 2025, following a seven-day winning streak, with major indexes retreating as investors reacted to corporate news, political uncertainty, and a reassessment of AI sector valuations [1][9] - The S&P 500 declined by 0.4%, the Nasdaq Composite fell by 0.7%, and the Dow Jones Industrial Average slipped by 105 points or 0.2%, indicating a pause after a strong rally driven by AI advancements and expectations of easier monetary policy from the Federal Reserve [2][9] Economic and Political Context - The ongoing U.S. government shutdown, now in its seventh day, has delayed the release of key economic data, including the September jobs report, creating uncertainty in the market and complicating Federal Reserve policy decisions [3][9] - Safe-haven assets, such as gold, saw increased demand, with futures surging above $4,000 per ounce, reflecting investor caution amid inflation pressures and geopolitical tensions [3] Corporate Developments - Oracle's shares dropped over 5% due to lower-than-expected margins in its cloud business and losses on Nvidia chip rentals, contributing to the Nasdaq's decline [5] - Tesla's stock fell 4.4% after introducing a low-cost version of its Model Y SUV, raising concerns about margin compression [5] - Advanced Micro Devices (AMD) shares rose nearly 4% following a partnership with OpenAI, which is purchasing several generations of AMD's AI chips [5] - AppLovin's shares surged 7.6% after a significant drop the previous day, as the SEC investigated its data-collection practices [5] - Constellation Brands' stock increased over 3% after reporting smaller-than-expected quarterly sales declines, although it lowered its full-year profit outlook [5] - IBM's stock jumped 3% after announcing a partnership with Anthropic, highlighting ongoing interest in AI collaborations [5] - Comerica's shares rose 13.7% following an acquisition agreement by Fifth Third Bancorp valued at $10.9 billion, while Fifth Third's stock fell 1.4% [5] Upcoming Events - The third-quarter earnings season is set to begin, with major banks like JPMorgan Chase, Citigroup, and Wells Fargo scheduled to report results, with analysts estimating a year-over-year earnings growth rate of 7.9% for S&P 500 companies [7] - Earnings reports from Saratoga Investment and Penguin Solutions are anticipated, with projections of $0.67 per share on revenue of $32.39 million and $0.31 per share on revenue of $341.26 million, respectively [8]

Core Points - Fifth Third Bancorp is acquiring Comerica for $10.9 billion in an all-stock transaction, creating the 9th largest bank in the U.S. with approximately $288 billion in assets [1] - The merger will enhance Fifth Third's presence in high-growth markets, particularly in the Southeast, Texas, and California, with over half of its branches expected to be located in these regions by 2030 [1][2] - Comerica shareholders will receive 1.8663 shares of Fifth Third for each share they own, equating to $82.88 per share based on Fifth Third's closing stock price [2] Company Ownership Structure - Post-merger, Fifth Third shareholders will own about 73% of the combined entity, while Comerica shareholders will hold approximately 27% [3] Industry Context - Recent consolidation trends in the regional banking sector include PNC Financial's acquisition of FirstBank for $4.1 billion, which will enhance PNC's presence in Colorado and Arizona [3][4] - PNC is categorized as a super regional bank, which, while significant in size, is still smaller than major banking giants like Wells Fargo, Bank of America, and JPMorgan Chase [5] Board Composition - Three members from Comerica's board will join Fifth Third's board post-acquisition, with Comerica's CEO serving as vice chair and its chief banking officer leading Fifth Third's wealth and asset management business [6] Market Reaction - Following the announcement, Comerica's shares increased by 11%, while Fifth Third's shares decreased by 2% [7]

Market Overview - The U.S. stock market opened on October 7, 2025, with mixed sentiment as investors reacted to corporate news, a government shutdown, and Federal Reserve policy outlook [1] - The S&P 500 Index rose slightly to 6742 points, up 0.03%, following a record-setting close on Monday [2] - The Nasdaq Composite Index reached a new high of 22941.667 points, but early futures indicated a pause in its upward momentum [2] - The Dow Jones Industrial Average fell 0.14% to 46694.97 points, ending a six-day rally, with futures down 0.2% [3] Upcoming Market Events - The ongoing U.S. government shutdown is a significant concern, delaying crucial economic data releases [4] - The Federal Reserve's monetary policy is under scrutiny, with potential interest rate cuts anticipated in October and December [5] - The minutes from the September FOMC meeting are expected to provide insights into the Fed's policy direction [5] Earnings Reports - McCormick & Co is projected to announce quarterly earnings of $0.81 per share on revenue of $1.71 billion [6] - Saratoga Investment is expected to report earnings of $0.67 per share on revenue of $32.39 million, while Penguin Solutions is projected to post earnings of $0.31 per share on revenue of $341.26 million [6] - Pentair plc and Newell Brands Inc. are set to release their earnings later in October [6] Major Corporate Developments - Advanced Micro Devices (AMD) saw a stock increase of nearly 24% after announcing a multi-year chip agreement with OpenAI, which includes a potential 10% equity stake acquisition by OpenAI [7] - Tesla (TSLA) gained over 5% in anticipation of a product launch event [8] - Trilogy Metals (TMQ) surged over 205% after the White House announced a 10% stake acquisition in the company [9] - Fifth Third Bancorp (FITB) agreed to acquire Comerica (CMA) in a deal valued at approximately $10.9 billion, affecting stock prices of both companies [10] - Verizon Communications (VZ) saw a stock drop of 5.1% following a leadership change [10] Broader Market Trends - Gold futures are nearing $4,000 per ounce, while Bitcoin surpassed $126,000, both reaching new record highs [12] - Crude oil prices rebounded, with U.S. oil gaining over 2% following OPEC+'s production increase decision [12] - Investors are closely monitoring economic data, Federal Reserve commentary, and corporate earnings for market direction [13]