[Balance Sheet Data](index=2&type=section&id=BALANCE%20SHEET%20DATA) Republic Bancorp, Inc.'s balance sheet data for the third quarter of 2025 shows a slight increase in total assets and stockholders' equity compared to the previous quarter, while total deposits also saw a modest rise | Metric (in thousands) | Sep. 30, 2025 | Jun. 30, 2025 | Sep. 30, 2024 | | :-------------------- | :------------ | :------------ | :------------ | | Total assets | $7,014,919 | $6,970,917 | $6,692,470 | | Loans, net | $5,201,509 | $5,291,260 | $5,214,759 | | Total deposits | $5,338,345 | $5,317,239 | $5,101,696 | | Stockholders' equity | $1,084,520 | $1,060,106 | $979,705 | - Total assets increased by **$44.0 million (0.63%)** from June 30, 2025, to September 30, 2025, and by **$322.4 million (4.82%)** year-over-year from September 30, 2024[4](index=4&type=chunk) - Total deposits increased by **$21.1 million (0.40%)** from June 30, 2025, to September 30, 2025, and by **$236.6 million (4.64%)** year-over-year from September 30, 2024[4](index=4&type=chunk) [Average Balance Sheet Data](index=3&type=section&id=AVERAGE%20BALANCE%20SHEET%20DATA) The average balance sheet data for the third quarter of 2025 shows a slight decrease in total average assets and interest-earning assets compared to the previous quarter, but an increase year-over-year | Metric (in thousands) | Three Months Ended Sep. 30, 2025 | Three Months Ended Jun. 30, 2025 | Three Months Ended Sep. 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Total assets | $6,991,878 | $7,062,031 | $6,711,818 | | Total interest-earning assets | $6,564,354 | $6,627,798 | $6,312,419 | | Total interest-bearing liabilities | $4,524,343 | $4,538,969 | $4,281,727 | - Average total assets decreased by **$70.2 million (1.0%)** quarter-over-quarter but increased by **$280.1 million (4.2%)** year-over-year[6](index=6&type=chunk) - Average total interest-earning assets decreased by **$63.4 million (1.0%)** quarter-over-quarter but increased by **$251.9 million (4.0%)** year-over-year[6](index=6&type=chunk) [Total Company Average Balance Sheets and Interest Rates](index=4&type=section&id=TOTAL%20COMPANY%20AVERAGE%20BALANCE%20SHEETS%20AND%20INTEREST%20RATES) For the three months ended September 30, 2025, Republic Bancorp reported an increase in net interest income and net interest margin compared to the same period in 2024, driven by higher yields on investment securities and traditional bank loans | Metric | Three Months Ended Sep. 30, 2025 | Three Months Ended Sep. 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | | Net interest income (in thousands) | $76,970 | $71,305 | | Net interest spread | 3.94 % | 3.59 % | | Net interest margin | 4.65 % | 4.49 % | | Average Rate - Total interest-earning assets | 6.24 % | 6.40 % | | Average Rate - Total interest-bearing liabilities | 2.30 % | 2.81 % | - Net interest income increased by **$5.665 million (7.9%)** year-over-year[7](index=7&type=chunk) - Net interest margin improved by **0.16 percentage points** year-over-year, reaching **4.65%**[7](index=7&type=chunk) - The average rate on total interest-earning assets decreased from **6.40% to 6.24%** year-over-year, while the cost of average interest-bearing liabilities decreased from **2.81% to 2.30%** year-over-year[7](index=7&type=chunk) [Income Statement Data](index=5&type=section&id=INCOME%20STATEMENT%20DATA) Republic Bancorp's Q3 2025 income statement shows a slight quarter-over-quarter net income decrease but a significant year-over-year increase, driven by improved net interest income and year-to-date noninterest income growth | Metric (in thousands) | Three Months Ended Sep. 30, 2025 | Three Months Ended Jun. 30, 2025 | Three Months Ended Sep. 30, 2024 | Nine Months Ended Sep. 30, 2025 | Nine Months Ended Sep. 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Total interest income | $103,239 | $102,203 | $101,546 | $335,280 | $329,878 | | Total interest expense | $26,269 | $26,001 | $30,241 | $79,420 | $93,118 | | Net interest income | $76,970 | $76,202 | $71,305 | $255,860 | $236,760 | | Total noninterest income | $16,568 | $17,644 | $16,813 | $67,366 | $58,532 | | Total noninterest expense | $53,753 | $51,633 | $48,609 | $163,594 | $149,214 | | Net income | $29,744 | $31,484 | $26,543 | $108,496 | $82,355 | - Net income for Q3 2025 was **$29.744 million**, a decrease from **$31.484 million** in Q2 2025, but an increase from **$26.543 million** in Q3 2024[10](index=10&type=chunk) - Year-to-date net income for Sep 30, 2025, was **$108.496 million**, a significant increase from **$82.355 million** for the same period in 2024[10](index=10&type=chunk) - Provision for expected credit loss expense decreased significantly year-to-date, from **$41.425 million** in 2024 to **$21.518 million** in 2025[10](index=10&type=chunk) [Selected Data and Ratios](index=6&type=section&id=SELECTED%20DATA%20AND%20RATIOS) Republic Bancorp's selected data and ratios for Q3 2025 indicate improved profitability and capital adequacy year-over-year, with higher book value per share and return on average assets, despite a slight increase in the efficiency ratio quarter-over-quarter [Per Share Data](index=6&type=section&id=Per%20Share%20Data) Book value per share and tangible book value per share continued to increase, reflecting growth in stockholders' equity, while basic and diluted EPS for Class A Common Stock showed a decrease quarter-over-quarter but a strong increase year-to-date | Metric | Sep. 30, 2025 | Jun. 30, 2025 | Sep. 30, 2024 | Sep. 30, 2025 (YTD) | Sep. 30, 2024 (YTD) | | :-------------------------- | :------------ | :------------ | :------------ | :------------------ | :------------------ | | Book value per share | $55.51 | $54.29 | $50.39 | $55.51 | $50.39 | | Tangible book value per share | $53.01 | $51.78 | $47.84 | $53.01 | $47.84 | | Basic EPS - Class A Common Stock | $1.53 | $1.62 | $1.37 | $5.57 | $4.25 | | Diluted EPS - Class A Common Stock | $1.52 | $1.61 | $1.37 | $5.55 | $4.24 | | Cash dividends declared per Class A Common share | $0.451 | $0.451 | $0.407 | $1.353 | $1.221 | - Book value per share increased by **$1.22 (2.25%)** quarter-over-quarter and **$5.12 (10.16%)** year-over-year[11](index=11&type=chunk) - Basic EPS for Class A Common Stock decreased from **$1.62** in Q2 2025 to **$1.53** in Q3 2025, but the year-to-date figure increased from **$4.25** in 2024 to **$5.57** in 2025[11](index=11&type=chunk) [Performance Ratios](index=6&type=section&id=Performance%20Ratios) Key performance ratios show an improvement in profitability metrics year-over-year, with Return on Average Assets and Return on Average Equity increasing, while the efficiency ratio slightly increased quarter-over-quarter but improved year-to-date | Metric | Sep. 30, 2025 | Jun. 30, 2025 | Sep. 30, 2024 | Sep. 30, 2025 (YTD) | Sep. 30, 2024 (YTD) | | :----------------------------------- | :------------ | :------------ | :------------ | :------------------ | :------------------ | | Return on average assets | 1.69 % | 1.79 % | 1.58 % | 2.03 % | 1.60 % | | Return on average equity | 10.91 % | 11.96 % | 10.88 % | 13.77 % | 11.53 % | | Efficiency ratio | 57.4 % | 55.0 % | 55.2 % | 49.7 % | 50.5 % | | Net interest margin - Total Company | 4.65 % | 4.61 % | 4.49 % | 5.18 % | 4.92 % | - Return on average assets increased from **1.58%** in Q3 2024 to **1.69%** in Q3 2025, and year-to-date from **1.60% to 2.03%**[11](index=11&type=chunk) - The efficiency ratio for Q3 2025 was **57.4%**, an increase from **55.0%** in Q2 2025, but the year-to-date efficiency ratio improved from **50.5%** in 2024 to **49.7%** in 2025[11](index=11&type=chunk) [Other Information](index=6&type=section&id=Other%20Information) The company maintained a stable number of full-time equivalent employees (FTEs) and banking centers, indicating consistent operational infrastructure | Metric | Sep. 30, 2025 | Jun. 30, 2025 | Sep. 30, 2024 | | :-------------------------- | :------------ | :------------ | :------------ | | End of period FTEs - Total Company | 978 | 974 | 992 | | Number of full-service banking centers | 47 | 47 | 47 | - Total Company FTEs slightly increased quarter-over-quarter from **974 to 978**, but decreased from **992** year-over-year[11](index=11&type=chunk) [Loan Composition and Allowance for Credit Losses on Loans](index=7&type=section&id=LOAN%20COMPOSITION) Republic Bancorp's loan portfolio shows a slight decrease in total loans quarter-over-quarter, primarily driven by a reduction in Warehouse lines of credit and Republic Processing Group loans, while the Allowance for Credit Losses on Loans also decreased [Loan Composition](index=7&type=section&id=Loan%20Composition) Traditional Banking loans remained relatively stable, while Warehouse lines of credit decreased, and Republic Processing Group loans saw a significant reduction, particularly in Tax Refund Solutions, compared to previous quarters | Loan Category (in thousands) | Sep. 30, 2025 | Jun. 30, 2025 | Sep. 30, 2024 | | :--------------------------- | :------------ | :------------ | :------------ | | Total Traditional Banking | $4,558,306 | $4,582,152 | $4,566,896 | | Warehouse lines of credit | $609,826 | $671,773 | $595,163 | | Total Core Banking | $5,168,132 | $5,253,925 | $5,162,059 | | Total Republic Processing Group | $113,242 | $119,095 | $134,858 | | Total Loans - Total Company | $5,281,374 | $5,373,020 | $5,296,917 | - Total loans decreased by **$91.6 million (1.7%)** quarter-over-quarter and by **$15.5 million (0.3%)** year-over-year[12](index=12&type=chunk) - Warehouse lines of credit decreased by **$61.9 million (9.2%)** quarter-over-quarter[12](index=12&type=chunk) [Allowance for Credit Losses on Loans](index=7&type=section&id=Allowance%20for%20Credit%20Losses%20on%20Loans) The total allowance for credit losses decreased quarter-over-quarter and year-over-year, with the allowance to total loans ratio for the Total Company remaining relatively stable, while the Tax Refund Solutions segment showed significant fluctuations | Metric (in thousands) | Sep. 30, 2025 | Jun. 30, 2025 | Sep. 30, 2024 | | :-------------------- | :------------ | :------------ | :------------ | | Total Allowance - Total Company | $79,865 | $81,760 | $82,158 | | Allowance to Total Loans - Total Company | 1.51 % | 1.52 % | 1.55 % | | Allowance to Total Loans - Tax Refund Solutions | 0.34 % | — % | 0.33 % | | Allowance to Total Loans - Republic Credit Solutions | 17.59 % | 17.67 % | 15.70 % | - Total Allowance for Credit Losses decreased by **$1.895 million (2.3%)** quarter-over-quarter and by **$2.293 million (2.8%)** year-over-year[12](index=12&type=chunk) - The Allowance to Total Loans for the Total Company slightly decreased from **1.52% to 1.51%** quarter-over-quarter and from **1.55%** year-over-year[12](index=12&type=chunk) [Credit Quality Data and Ratios](index=8&type=section&id=CREDIT%20QUALITY%20DATA%20AND%20RATIOS) Republic Bancorp's credit quality data for Q3 2025 shows a slight increase in nonperforming assets and delinquent loans quarter-over-quarter for the Total Company, but a decrease in annualized net charge-offs year-to-date, with the Core Bank generally maintaining stable credit quality | Metric (in thousands) | Sep. 30, 2025 | Jun. 30, 2025 | Sep. 30, 2024 | Sep. 30, 2025 (YTD) | Sep. 30, 2024 (YTD) | | :-------------------- | :------------ | :------------ | :------------ | :------------------ | :------------------ | | Total nonperforming assets - Total Company | $22,955 | $22,696 | $20,757 | $22,955 | $20,757 | | Total delinquent loans - Total Company | $19,382 | $19,086 | $20,950 | $19,382 | $20,950 | | Total NCOs (recoveries) - Total Company | $3,918 | $26,366 | $4,188 | $33,631 | $41,402 | | Nonperforming loans to total loans - Total Company | 0.41 % | 0.40 % | 0.37 % | 0.41 % | 0.37 % | | Annualized NCOs (recoveries) to average loans - Total Company | 0.29 % | 1.99 % | 0.32 % | 0.84 % | 1.04 % | - Total nonperforming assets for the Total Company increased by **$259 thousand (1.1%)** quarter-over-quarter and by **$2.198 million (10.6%)** year-over-year[14](index=14&type=chunk) - Total delinquent loans for the Total Company increased by **$296 thousand (1.6%)** quarter-over-quarter but decreased by **$1.568 million (7.5%)** year-over-year[14](index=14&type=chunk) - Annualized Net Charge-offs (NCOs) to average loans for the Total Company decreased significantly year-to-date from **1.04%** in 2024 to **0.84%** in 2025[14](index=14&type=chunk) [Segment Data](index=9&type=section&id=SEGMENT%20DATA) Republic Bancorp operates through five reportable segments: Traditional Banking, Warehouse Lending, Tax Refund Solutions, Republic Payment Solutions, and Republic Credit Solutions, with performance evaluated based on income before tax expense [Reportable Segments Overview](index=9&type=section&id=Reportable%20Segments%20Overview) The company's segments are categorized into Core Banking and Republic Processing Group, each with distinct operations and primary revenue drivers - Core Banking includes Traditional Banking (traditional products, net interest income) and Warehouse Lending (short-term revolving credit, net interest income)[18](index=18&type=chunk) - Republic Processing Group includes Tax Refund Solutions (tax-related credit, net interest income and net refund transfer fees), Republic Payment Solutions (general-purpose reloadable cards, net interest income and program fees), and Republic Credit Solutions (consumer credit products, net interest income and program fees)[18](index=18&type=chunk) - Management considers Traditional Banking and Warehouse Lending as 'Core Bank' operations, while Tax Refund Solutions, Republic Payment Solutions, and Republic Credit Solutions constitute 'Republic Processing Group' operations[16](index=16&type=chunk) [Segment Performance - Three Months Ended September 30, 2025](index=10&type=section&id=Segment%20Performance%20-%20Three%20Months%20Ended%20September%2030%2C%202025) For Q3 2025, Core Banking contributed the majority of net interest income and income before tax, with Republic Credit Solutions also showing significant contributions within the Republic Processing Group | Segment (in thousands) | Net interest income | Provision for expected credit loss expense | Income before income tax expense | Net income | Net-revenue concentration | | :--------------------- | :------------------ | :----------------------------------------- | :------------------------------- | :--------- | :------------------------ | | Traditional Banking | $57,424 | $(325) | $22,057 | $17,466 | 72 % | | Warehouse Lending | $3,805 | $(154) | $3,035 | $2,351 | 4 % | | Tax Refund Solutions | $280 | $(1,467) | $554 | $459 | 2 % | | Republic Payment Solutions | $3,193 | — | $2,870 | $2,246 | 4 % | | Republic Credit Solutions | $12,268 | $3,969 | $9,246 | $7,222 | 18 % | | Total Company | $76,970 | $2,023 | $37,762 | $29,744 | 100 % | - Core Banking segments (Traditional Banking and Warehouse Lending) generated **$61.229 million** in net interest income and **$25.092 million** in income before income tax expense[20](index=20&type=chunk) - Republic Credit Solutions was the largest contributor within the Republic Processing Group, with **$12.268 million** in net interest income and **$9.246 million** in income before income tax expense[20](index=20&type=chunk) [Segment Performance - Nine Months Ended September 30, 2025](index=11&type=section&id=Segment%20Performance%20-%20Nine%20Months%20Ended%20September%2030%2C%202025) For the nine months ended September 30, 2025, Core Banking remained the dominant segment, while Tax Refund Solutions and Republic Credit Solutions significantly contributed to overall company performance within the Republic Processing Group | Segment (in thousands) | Net interest income | Provision for expected credit loss expense | Income before income tax expense | Net income | Net-revenue concentration | | :--------------------- | :------------------ | :----------------------------------------- | :------------------------------- | :--------- | :------------------------ | | Traditional Banking | $167,125 | $(577) | $63,281 | $50,034 | 63 % | | Warehouse Lending | $10,382 | $148 | $7,530 | $5,833 | 3 % | | Tax Refund Solutions | $30,154 | $10,028 | $29,876 | $23,382 | 15 % | | Republic Payment Solutions | $10,750 | — | $9,691 | $7,582 | 4 % | | Republic Credit Solutions | $37,449 | $11,919 | $27,736 | $21,665 | 15 % | | Total Company | $255,860 | $21,518 | $138,114 | $108,496 | 100 % | - Core Banking segments contributed **$177.507 million** to net interest income and **$70.811 million** to income before income tax expense for the nine-month period[22](index=22&type=chunk) - Tax Refund Solutions showed a significant net interest income of **$30.154 million** and income before tax of **$29.876 million**, with a net-revenue concentration of **15%**[22](index=22&type=chunk) [Footnotes](index=12&type=section&id=FOOTNOTES) The footnotes provide crucial details on loan fee income, the nature of provision for credit loss expense, the treatment of mortgage and consumer loans held for sale, and reconciliations of non-GAAP financial measures [Loan Fee Income by Segment](index=12&type=section&id=Loan%20Fee%20Income%20by%20Segment) Loan fee income significantly impacts interest income and margins, with Republic Processing Group segments, particularly RCS and TRS, generating a substantial portion of total loan fees | Segment (in thousands) | Sep. 30, 2025 (QTD) | Sep. 30, 2024 (QTD) | Sep. 30, 2025 (YTD) | Sep. 30, 2024 (YTD) | | :--------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Traditional Banking | $1,393 | $1,518 | $4,051 | $4,165 | | Warehouse Lending | $364 | $392 | $1,043 | $977 | | TRS | $17 | $42 | $33,717 | $36,669 | | RCS | $12,123 | $12,935 | $36,794 | $35,579 | | Total loan fees - Total Company | $13,897 | $14,887 | $75,605 | $77,390 | - Total loan fees for the Total Company decreased by **$990 thousand (6.6%)** quarter-over-quarter and by **$1.785 million (2.3%)** year-to-date[23](index=23&type=chunk) - RCS consistently generated the largest portion of loan fees within the RPG segment, contributing **$12.123 million** in Q3 2025[23](index=23&type=chunk) [Mortgage and Consumer Loans Held for Sale](index=12&type=section&id=Mortgage%20and%20Consumer%20Loans%20Held%20for%20Sale) The company originates both mortgage and consumer loans with the intent to sell, primarily through the Traditional Banking and RCS segments, with net gains on sale contributing to noninterest income | Metric (in thousands) | Sep. 30, 2025 (QTD) | Sep. 30, 2024 (QTD) | Sep. 30, 2025 (YTD) | Sep. 30, 2024 (YTD) | | :-------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Mortgage Loans Held for Sale - Originations | $59,494 | $57,142 | $152,515 | $136,894 | | Mortgage Loans Held for Sale - Net gain on sale | $1,710 | $1,413 | $4,604 | $2,430 | | Consumer Loans Held for Sale - Originations | $271,718 | $350,413 | $859,496 | $940,901 | | Consumer Loans Held for Sale - Net gain on sale | $4,106 | $4,177 | $11,206 | $11,221 | - Mortgage loan originations held for sale increased by **$2.352 million (4.1%)** quarter-over-quarter and by **$15.621 million (11.4%)** year-to-date[25](index=25&type=chunk) - Consumer loan originations held for sale decreased by **$49.409 million (15.4%)** quarter-over-quarter and by **$81.405 million (8.7%)** year-to-date[25](index=25&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) The company provides reconciliations for non-GAAP measures like tangible stockholders' equity and adjusted efficiency ratio, offering a clearer view of capital adequacy and operational efficiency | Metric (in thousands) | Sep. 30, 2025 | Jun. 30, 2025 | Sep. 30, 2024 | | :-------------------- | :------------ | :------------ | :------------ | | Total stockholders' equity - GAAP | $1,084,520 | $1,060,106 | $979,705 | | Tangible stockholders' equity - Non-GAAP | $1,035,569 | $1,011,011 | $930,065 | | Book value per share - GAAP | $55.51 | $54.29 | $50.39 | | Tangible book value per share - Non-GAAP | $53.01 | $51.78 | $47.84 | - Tangible stockholders' equity increased by **$24.558 million (2.4%)** quarter-over-quarter and by **$105.504 million (11.3%)** year-over-year[28](index=28&type=chunk) | Metric | Sep. 30, 2025 (QTD) | Sep. 30, 2024 (QTD) | Sep. 30, 2025 (YTD) | Sep. 30, 2024 (YTD) | | :-------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Efficiency Ratio - GAAP-derived | 57.5 % | 55.2 % | 50.6 % | 50.5 % | | Adjusted Efficiency Ratio - Non-GAAP | 57.4 % | 55.2 % | 49.7 % | 50.5 % | - The Adjusted Efficiency Ratio for Q3 2025 was **57.4%**, an increase from **55.2%** in Q3 2024, but the year-to-date ratio improved from **50.5%** in 2024 to **49.7%** in 2025[29](index=29&type=chunk)

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Ally Financial reported strong Q3 2025 financial results, with significant increases in EPS and pre-tax income, driven by record consumer auto originations and continued retail deposit growth, reflecting improved returns and disciplined execution [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Ally Financial reported strong third-quarter 2025 financial results, with significant year-over-year increases in GAAP and Adjusted EPS, and pre-tax income, reflecting improved returns and disciplined execution across its core businesses | Metric | 3Q 25 | YoY Change | QoQ Change | | :--------------------------------------- | :------ | :--------- | :--------- | | GAAP EPS | $1.18 | +116% | +14% | | Adjusted EPS | $1.15 | +166% | +16% | | GAAP Pre-tax income | $513 million | +$248 million | +$77 million | | Core Pre-tax income | $502 million | +$282 million | +$85 million | | GAAP Net Income Attributable to Common Shareholders | $371 million | +117% | +15% | | Core Net Income Attributable to Common Shareholders | $363 million | +167% | +17% | | Return on GAAP Shareholder's Equity | 11.9% | +104% | +10% | | Core ROTCE | 15.3% | +145% | +12% | | GAAP Total Net Revenue | $2,168 million | +2% | +4% | | Adjusted Total Net Revenue | $2,157 million | +3% | +5% | - Net Interest Margin (NIM) ex. OID increased by **10 basis points** quarter-over-quarter to **3.55%**[10](index=10&type=chunk) - Common equity tier 1 ratio improved to **10.1%**, up approximately **20 basis points** quarter-over-quarter[10](index=10&type=chunk) [Operational Highlights](index=1&type=section&id=Operational%20Highlights) Ally's operational performance was strong, marked by record consumer auto applications, significant auto originations, stable insurance premiums, and continued growth in retail deposits, reinforcing its position as a leading digital bank - Consumer auto originations reached **$11.7 billion** from a record **4.0 million** applications, up **25%** year-over-year[5](index=5&type=chunk)[10](index=10&type=chunk) - Retail auto originated yield was **9.72%**, with **42%** of volume in the highest credit quality tier[10](index=10&type=chunk) - Retail auto net charge-offs decreased by **36 basis points** year-over-year to **1.88%**[10](index=10&type=chunk) - Insurance written premiums were **$385 million**, flat year-over-year, and up **2%** excluding excess of loss reinsurance[10](index=10&type=chunk) - Retail deposits totaled **$142 billion**, with **92%** FDIC insured and **88%** core deposit funded[7](index=7&type=chunk)[10](index=10&type=chunk) - Ally Bank achieved its **66th consecutive quarter** of retail deposit customer growth, serving **3.4 million** customers[7](index=7&type=chunk)[10](index=10&type=chunk) - Corporate Finance delivered a **30% ROE** for the quarter, with criticized assets and non-accrual loans near historic lows[6](index=6&type=chunk)[10](index=10&type=chunk) [CEO Comments](index=1&type=section&id=CEO%20Comments) CEO Michael Rhodes highlighted the quarter's results as proof of continued progress towards improved returns, attributing success to sharper strategic alignment and disciplined execution across all core businesses, including Dealer Financial Services, Insurance, Corporate Finance, and Ally Bank - CEO Michael Rhodes stated that the quarter's results demonstrate continued progress toward improved returns, driven by sharper strategic alignment and disciplined execution[4](index=4&type=chunk)[8](index=8&type=chunk) - Dealer Financial Services showed competitive strength with record consumer applications and **$11.7 billion** in originations, up **25%** year-over-year[5](index=5&type=chunk) - Corporate Finance achieved a **30% ROE**, maintaining low criticized assets and non-accrual loans due to disciplined risk management[6](index=6&type=chunk) - Ally Bank grew its deposit customer base for the **66th consecutive quarter**, reaching **3.4 million** customers and **$142 billion** in retail deposits, solidifying its position as the largest all-digital bank[7](index=7&type=chunk) [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics) The company reported significant year-over-year growth in key financial metrics for Q3 2025, including substantial increases in GAAP and Adjusted Net Income and EPS, alongside improvements in profitability ratios like Return on GAAP Shareholder's Equity and Core ROTCE | ($ millions except per share data) | 3Q 25 | 2Q 25 | 3Q 24 | Increase / (Decrease) vs. 2Q 25 | Increase / (Decrease) vs. 3Q 24 | | :----------------------------------------- | :------ | :------ | :------ | :------------------------------ | :------------------------------ | | GAAP Net Income (Loss) Attributable to Common Shareholders | $371 | $324 | $171 | 15% | 117% | | Core Net Income Attributable to Common Shareholders | $363 | $309 | $136 | 17% | 167% | | GAAP Earnings per Common Share | $1.18 | $1.04 | $0.55 | 14% | 116% | | Adjusted EPS | $1.15 | $0.99 | $0.43 | 16% | 166% | | Return on GAAP Shareholder's Equity | 11.9% | 10.7% | 5.8% | 10% | 104% | | Core ROTCE | 15.3% | 13.6% | 6.2% | 12% | 145% | | GAAP Common Shareholder's Equity per Share | $41.56 | $39.71 | $39.68 | 5% | 5% | | Adjusted Tangible Book Value per Share | $39.19 | $37.30 | $35.41 | 5% | 11% | | GAAP Total Net Revenue | $2,168 | $2,082 | $2,135 | 4% | 2% | | Adjusted Total Net Revenue | $2,157 | $2,064 | $2,090 | 5% | 3% | [Third Quarter 2025 Financial Results Discussion](index=3&type=section&id=Third%20Quarter%202025%20Financial%20Results%20Discussion) Ally Financial's Q3 2025 results showed significant net income growth driven by higher net financing revenue and reduced credit loss provisions, with varied pre-tax income performance across segments [Consolidated Financial Performance](index=3&type=section&id=Consolidated%20Financial%20Performance) Ally Financial's consolidated performance in Q3 2025 showed a significant increase in net income attributable to common shareholders, driven by higher net financing revenue and a substantial decrease in provision for credit losses, despite a slight increase in noninterest expense - Net income attributable to common shareholders was **$371 million**, a significant increase from **$171 million** in Q3 2024[13](index=13&type=chunk)[18](index=18&type=chunk) - Net financing revenue rose to **$1.6 billion**, up **$64 million** year-over-year, with Net Interest Margin (NIM) at **3.51%** and NIM excluding core OID at **3.55%**, both up over **20 bps** year-over-year[13](index=13&type=chunk)[18](index=18&type=chunk) - Other revenue decreased by **$31 million** year-over-year to **$584 million**, primarily due to a smaller increase in fair value of equity securities compared to the prior year, partially offset by growth in diversified revenue streams[14](index=14&type=chunk)[18](index=18&type=chunk) - Provision for credit losses decreased by **$230 million** year-over-year to **$415 million**, attributed to an increase in retail auto reserve rate in the prior year, lower retail auto net charge-offs, and the sale of the credit card portfolio[15](index=15&type=chunk)[18](index=18&type=chunk) - Noninterest expense increased by **$15 million** year-over-year to **$1,240 million**[16](index=16&type=chunk)[18](index=18&type=chunk) | ($ millions except per share data) | 3Q 25 | 2Q 25 | 3Q 24 | Increase/(Decrease) vs. 2Q 25 | Increase/(Decrease) vs. 3Q 24 | | :----------------------------------------- | :------ | :------ | :------ | :------------------------------ | :------------------------------ | | Net Financing Revenue | $1,584 | $1,516 | $1,520 | $68 | $64 | | Other Revenue | $584 | $566 | $615 | $18 | $(31) | | Provision for Credit Losses | $415 | $384 | $645 | $31 | $(230) | | Noninterest Expense | $1,240 | $1,262 | $1,225 | $(22) | $15 | | Pre-Tax Income (loss) | $513 | $436 | $265 | $77 | $248 | | Net Income (Loss) Attributable to Common Shareholders | $371 | $324 | $171 | $47 | $200 | | GAAP EPS | $1.18 | $1.04 | $0.55 | $0.14 | $0.63 | | Adjusted EPS | $1.15 | $0.99 | $0.43 | $0.16 | $0.72 | [Pre-Tax Income by Segment](index=4&type=section&id=Pre-Tax%20Income%20by%20Segment) Dealer Financial Services maintained stable pre-tax income quarter-over-quarter and saw a significant year-over-year increase, while Automotive Finance's pre-tax income improved year-over-year. Insurance and Corporate Finance experienced slight year-over-year declines in pre-tax income | ($ millions) | 3Q 25 | 2Q 25 | 3Q 24 | Increase/(Decrease) vs. 2Q 25 | Increase/(Decrease) vs. 3Q 24 | | :--------------------------------------- | :------ | :------ | :------ | :------------------------------ | :------------------------------ | | Automotive Finance | $421 | $472 | $355 | $(51) | $66 | | Insurance | $79 | $28 | $102 | $51 | $(23) | | Dealer Financial Services | $500 | $500 | $457 | $— | $43 | | Corporate Finance | $95 | $96 | $105 | $(1) | $(10) | | Corporate and Other | $(82) | $(160) | $(297) | $78 | $215 | | Pre-Tax Income (Loss) from Continuing Operations | $513 | $436 | $265 | $77 | $248 | | Core Pre-Tax Income | $502 | $418 | $220 | $85 | $282 | [Segment Results Discussion](index=4&type=section&id=Segment%20Results%20Discussion) The Auto Finance segment saw increased pre-tax income and improved credit quality, while Insurance experienced a decline due to fair value changes, and Corporate Finance maintained strong profitability despite a slight pre-tax income decrease [Auto Finance](index=4&type=section&id=Auto%20Finance) The Auto Finance segment saw a year-over-year increase in pre-tax income, primarily due to lower provision expense, despite a decrease in net financing revenue. Credit quality improved, with lower net charge-offs and delinquencies, while consumer auto earning assets grew - Pre-tax income was **$421 million**, up **$66 million** year-over-year, driven by lower provision expense[24](index=24&type=chunk) - Net financing revenue was **$1.3 billion**, down **$54 million** year-over-year, primarily due to lower lease gains and commercial assets[24](index=24&type=chunk) - Retail auto portfolio yield, excluding hedges, increased **22 bps** year-over-year to **9.21%**[24](index=24&type=chunk) - Provision for credit losses decreased **$169 million** year-over-year to **$410 million**, reflecting improved credit and a prior year reserve rate increase[25](index=25&type=chunk) - Retail auto net charge-off rate decreased **36 bps** year-over-year to **1.88%**, and 30+ days past due delinquencies decreased **30 bps** year-over-year to **4.90%**[25](index=25&type=chunk) - Consumer auto originations totaled **$11.7 billion**, with **60%** from used retail volume[26](index=26&type=chunk) - End-of-period consumer auto earning assets increased **$2.2 billion** year-over-year to **$93.6 billion**, while commercial earning assets decreased **$2.1 billion** to **$21.8 billion**[27](index=27&type=chunk) [Insurance](index=4&type=section&id=Insurance) The Insurance segment's pre-tax income declined year-over-year due to a decrease in the fair value of equity securities, despite an increase in core pre-tax income driven by higher investment income and stable written premiums - Pre-tax income was **$79 million**, down **$23 million** year-over-year, primarily due to a **$29 million** decrease in the change in fair value of equity securities[28](index=28&type=chunk) - Core pre-tax income increased **$6 million** year-over-year to **$52 million**, driven by higher investment income[28](index=28&type=chunk) - Insurance losses increased **$6 million** year-over-year to **$141 million**, reflecting increased Property & Casualty (P&C) exposure[29](index=29&type=chunk) - Written premiums were **$385 million**, flat year-over-year, and up **2%** excluding excess of loss reinsurance[30](index=30&type=chunk) - Total investment income, excluding fair value changes of equity securities, was **$62 million**, up **$13 million** year-over-year due to higher realized investment gains[30](index=30&type=chunk) [Corporate Finance](index=5&type=section&id=Corporate%20Finance) Corporate Finance reported a slight year-over-year decrease in pre-tax income, mainly due to lower other revenue, but maintained strong profitability with a 30% ROE and continued low levels of criticized assets and non-accrual loans - Pre-tax income was **$95 million**, down **$10 million** year-over-year, driven by lower other revenue[32](index=32&type=chunk) - Net financing revenue increased **$2 million** year-over-year to **$111 million**, due to higher earning assets[32](index=32&type=chunk) - Other revenue decreased **$12 million** year-over-year to **$25 million**, impacted by higher syndication and fee income in the prior year[32](index=32&type=chunk) - Provision expense was **$8 million**, a **$3 million** favorable change year-over-year, primarily due to lower specific reserve activity[33](index=33&type=chunk) - Return on equity (ROE) for the quarter was **30%**[34](index=34&type=chunk) - The held-for-investment loan portfolio stood at **$11.3 billion**, **100%** first lien, with criticized assets at **9%** and non-accrual loans at **1%**, both near historically low levels[34](index=34&type=chunk) [Capital, Liquidity & Deposits](index=5&type=section&id=Capital%2C%20Liquidity%20%26%20Deposits) Ally maintained a strong capital position with an increased CET1 ratio and robust liquidity, supported by substantial cash and deposits, while continuing to grow its retail deposit customer base [Capital](index=5&type=section&id=Capital) Ally maintained a stable common dividend and strengthened its capital position, with the CET1 ratio increasing and a successful credit risk transfer generating additional capital - Ally paid a **$0.30 per share** quarterly common dividend, unchanged year-over-year, and approved the same for Q4 2025[36](index=36&type=chunk) - The common equity tier 1 (CET1) capital ratio was **10.1%**, with risk-weighted assets (RWA) at **$150.7 billion**, down **$0.6 billion** quarter-over-quarter[37](index=37&type=chunk) - A **$5 billion** credit risk transfer was closed at the tightest spread in program history, generating approximately **20 bps** of CET1 at issuance[37](index=37&type=chunk) [Liquidity & Funding](index=5&type=section&id=Liquidity%20%26%20Funding) Ally maintained robust liquidity with substantial cash and highly liquid securities, complemented by significant unused borrowing capacity, ensuring strong funding stability with deposits comprising a large portion of its funding portfolio - Cash and cash equivalents totaled **$9.5 billion**, with highly liquid securities at **$19.9 billion**[38](index=38&type=chunk) - Unused pledged borrowing capacity at FHLB and FRB was **$10.3 billion** and **$26.9 billion**, respectively[38](index=38&type=chunk) - Total current available liquidity was **$66.6 billion**, representing **5.8x** uninsured deposit balances[38](index=38&type=chunk) - Deposits constituted **88%** of Ally's funding portfolio[39](index=39&type=chunk) [Deposits](index=5&type=section&id=Deposits) Ally's retail deposits remained strong, showing year-over-year growth and continued customer acquisition, particularly among younger demographics, while the average retail deposit portfolio yield saw a decrease - Retail deposits were **$141.8 billion**, up **$0.4 billion** year-over-year, but down **$1.3 billion** quarter-over-quarter[40](index=40&type=chunk) - Total deposits reached **$148.4 billion**, with Ally maintaining an industry-leading customer retention rate[40](index=40&type=chunk) - The average retail deposit portfolio yield was **3.48%**, down **70 bps** year-over-year and **10 bps** quarter-over-quarter[41](index=41&type=chunk) - Ally Bank added **44 thousand** net new deposit customers, totaling **3.4 million**, with Millennials and younger customers forming the largest segment of new customers[41](index=41&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines and reconciles various non-GAAP financial measures to their GAAP equivalents, providing clarity on adjustments made to assess Ally Financial's core operating performance and capital adequacy [Definitions of Non-GAAP Financial Measures and Other Key Terms](index=6&type=section&id=Definitions%20of%20Non-GAAP%20Financial%20Measures%20and%20Other%20Key%20Terms) This section provides detailed definitions for various non-GAAP financial measures used by Ally Financial, such as Adjusted EPS, Core ROTCE, and Adjusted Tangible Book Value per Share, explaining their purpose in assessing operating performance and capital adequacy, and outlining the adjustments made to GAAP measures - Non-GAAP financial measures are supplemental to GAAP and are used by management and investors to assess operating performance and capital[43](index=43&type=chunk) - Adjusted EPS adjusts GAAP EPS for strategic or non-operating items to better reflect core business performance[44](index=44&type=chunk) - Core Return on Tangible Common Equity (Core ROTCE) helps understand the company's ability to generate returns on its equity base supporting core operations[45](index=45&type=chunk) - Adjusted Tangible Book Value per Share (Adjusted TBVPS) provides a more conservative assessment of equity value by adjusting for goodwill, intangibles, and tax-effected Core OID balance[47](index=47&type=chunk) - Core Pre-Tax Income adjusts pre-tax income from continuing operations by excluding Core OID, changes in fair value of equity securities, and repositioning items to understand core business operating performance[51](index=51&type=chunk) - Net Interest Margin (excluding Core OID) and Net Financing Revenue (excluding Core OID) are used to better understand profitability and revenue generation by excluding bond exchange OID[55](index=55&type=chunk)[56](index=56&type=chunk) [Reconciliation to GAAP](index=8&type=section&id=Reconciliation%20to%20GAAP) This section provides detailed reconciliations of various non-GAAP financial measures to their most directly comparable GAAP measures, illustrating the adjustments made for items such as Core OID, changes in fair value of equity securities, and repositioning, to derive adjusted metrics like EPS, ROTCE, and pre-tax income [Adjusted Earnings per Share](index=8&type=section&id=Adjusted%20Earnings%20per%20Share) | Numerator ($ millions) | 3Q 25 | 2Q 25 | 3Q 24 | | :--------------------------------------------------- | :------ | :------ | :------ | | GAAP Net Income (Loss) Attributable to Common Shareholders | $371 | $324 | $171 | | Core OID | 17 | 16 | 14 | | Change in the Fair Value of Equity Securities | (27) | (35) | (59) | | Tax on: Core OID, Repo, & Change in Fair Value of Equity Securities (21% tax rate) | 2 | 4 | 9 | | Core Net Income Attributable to Common Shareholders | $363 | $309 | $136 | | Denominator (Weighted-Average Common Shares Outstanding, thousands) | 313,823 | 312,434 | 311,044 | | Adjusted EPS | $1.15 | $0.99 | $0.43 | [Core Return on Tangible Common Equity (ROTCE)](index=8&type=section&id=Core%20Return%20on%20Tangible%20Common%20Equity%20%28ROTCE%29) | Numerator ($ millions) | 3Q 25 | 2Q 25 | 3Q 24 | | :--------------------------------------------------- | :------ | :------ | :------ | | Core Net Income Attributable to Common Shareholders | $363 | $309 | $136 | | Denominator (Average, $ millions) | | | | | GAAP Common Shareholder's Equity | $12,508 | $12,066 | $11,733 | | Goodwill & Identifiable Intangibles, Net of Deferred Tax Liabilities (DTLs) | (187) | (241) | (710) | | Tangible Common Equity | $12,321 | $11,824 | $11,023 | | Core OID Balance | (696) | (713) | (759) | | Net Deferred Tax Asset (DTA) | (2,119) | (2,004) | (1,531) | | Normalized Common Equity | $9,506 | $9,107 | $8,733 | | Core Return on Tangible Common Equity | 15.3% | 13.6% | 6.2% | [Adjusted Tangible Book Value per Share](index=9&type=section&id=Adjusted%20Tangible%20Book%20Value%20per%20Share) | Numerator ($ millions) | 3Q 25 | 2Q 25 | 3Q 24 | | :--------------------------------------------------- | :------ | :------ | :------ | | GAAP Common Shareholder's Equity | $12,793 | $12,223 | $12,090 | | Goodwill and Identifiable Intangible Assets, Net of DTLs | (187) | (187) | (707) | | Tangible Common Equity | 12,606 | 12,036 | 11,383 | | Tax-effected Core OID Balance (21% tax rate) | (544) | (557) | (594) | | Adjusted Tangible Book Value | $12,062 | $11,479 | $10,790 | | Denominator (Issued Shares Outstanding, thousands) | 307,828 | 307,787 | 304,715 | | Adjusted Tangible Book Value per Share | $39.19 | $37.30 | $35.41 | [Adjusted Efficiency Ratio](index=9&type=section&id=Adjusted%20Efficiency%20Ratio) | ($ millions) | 3Q 25 | 2Q 25 | 3Q 24 | | :--------------------------------------------------- | :------ | :------ | :------ | | GAAP Noninterest Expense | $1,240 | $1,262 | $1,225 | | Insurance Expense | (374) | (424) | (365) | | Adjusted Noninterest Expense for Adjusted Efficiency Ratio | $866 | $838 | $860 | | Total Net Revenue | $2,168 | $2,082 | $2,135 | | Core OID | 17 | 16 | 14 | | Insurance Revenue | (453) | (452) | (467) | | Adjusted Net Revenue for Adjusted Efficiency Ratio | $1,732 | $1,646 | $1,682 | | Adjusted Efficiency Ratio | 50.0% | 50.9% | 51.1% | [Original Issue Discount Amortization Expense](index=9&type=section&id=Original%20Issue%20Discount%20Amortization%20Expense) | ($ millions) | 3Q 25 | 2Q 25 | 3Q 24 | | :----------------------------------------- | :------ | :------ | :------ | | GAAP Original Issue Discount Amortization Expense | $19 | $18 | $17 | | Other OID | (2) | (2) | (3) | | Core Original Issue Discount (Core OID) Amortization Expense | $17 | $16 | $14 | [Outstanding Original Issue Discount Balance](index=9&type=section&id=Outstanding%20Original%20Issue%20Discount%20Balance) | ($ millions) | 3Q 25 | 2Q 25 | 3Q 24 | | :----------------------------------------- | :------ | :------ | :------ | | GAAP Outstanding Original Issue Discount Balance | $(708) | $(727) | $(780) | | Other Outstanding OID Balance | 20 | 22 | 29 | | Core Outstanding Original Issue Discount Balance (Core OID Balance) | $(688) | $(705) | $(751) | [Net Financing Revenue (Excluding Core OID)](index=10&type=section&id=Net%20Financing%20Revenue%20%28Excluding%20Core%20OID%29) | ($ millions) | 3Q 25 | 2Q 25 | 3Q 24 | | :----------------------------------------- | :------ | :------ | :------ | | GAAP Net Financing Revenue | $1,584 | $1,516 | $1,520 | | Core OID | 17 | 16 | 14 | | Net Financing Revenue (Excluding Core OID) | $1,601 | $1,532 | $1,534 | [Adjusted Other Revenue](index=10&type=section&id=Adjusted%20Other%20Revenue) | ($ millions) | 3Q 25 | 2Q 25 | 3Q 24 | | :----------------------------------------- | :------ | :------ | :------ | | GAAP Other Revenue | $584 | $566 | $615 | | Accelerated OID & Repositioning Items | — | — | — | | Change in Fair Value of Equity Securities | (27) | (35) | (59) | | Adjusted Other Revenue | $557 | $531 | $556 | [Adjusted Total Net Revenue](index=10&type=section&id=Adjusted%20Total%20Net%20Revenue) | ($ millions) | 3Q 25 | 2Q 25 | 3Q 24 | | :----------------------------------------- | :------ | :------ | :------ | | Adjusted Total Net Revenue | $2,157 | $2,064 | $2,090 | [Adjusted Provision for Credit Losses](index=10&type=section&id=Adjusted%20Provision%20for%20Credit%20Losses) | ($ millions) | 3Q 25 | 2Q 25 | 3Q 24 | | :----------------------------------------- | :------ | :------ | :------ | | GAAP Provision for Credit Losses | $415 | $384 | $645 | | Repositioning | — | — | — | | Adjusted Provision for Credit Losses | $415 | $384 | $645 | [Adjusted Noninterest Expense](index=10&type=section&id=Adjusted%20Noninterest%20Expense) | ($ millions) | 3Q 25 | 2Q 25 | 3Q 24 | | :----------------------------------------- | :------ | :------ | :------ | | GAAP Noninterest Expense | $1,240 | $1,262 | $1,225 | | Repositioning | — | — | — | | Adjusted Noninterest Expense | $1,240 | $1,262 | $1,225 | [Core Pre-Tax Income](index=10&type=section&id=Core%20Pre-Tax%20Income) | ($ millions) | 3Q 25 | 2Q 25 | 3Q 24 | | :----------------------------------------- | :------ | :------ | :------ | | Pre-Tax Income (Loss) | $513 | $436 | $265 | | Core Pre-Tax Income | $502 | $418 | $220 | [Insurance Non-GAAP Walk to Core Pre-Tax Income](index=10&type=section&id=Insurance%20Non-GAAP%20Walk%20to%20Core%20Pre-Tax%20Income) | Insurance ($ millions) | GAAP 3Q 2025 | Change in fair value of equity securities | Non-GAAP1 3Q 2025 | GAAP 3Q 2024 | Change in fair value of equity securities | Non-GAAP1 3Q 2024 | | :----------------------------------- | :----------- | :---------------------------------------- | :---------------- | :----------- | :---------------------------------------- | :---------------- | | Premiums, Service Revenue Earned and Other | $364 | $— | $364 | $362 | $— | $362 | | Losses and Loss Adjustment Expenses | 141 | — | 141 | 135 | — | 135 | | Acquisition and Underwriting Expenses | 233 | — | 233 | 230 | — | 230 | | Investment Income and Other | 89 | (27) | 62 | 105 | (56) | 49 | | Pre-Tax Income from Continuing Operations | $79 | $(27) | $52 | $102 | $(56) | $46 | [Additional Information](index=11&type=section&id=Additional%20Information) This section provides an overview of Ally Financial, clarifies forward-looking statements and non-GAAP measures, defines key operational terms, and lists contact information for investor and media inquiries [About Ally Financial Inc.](index=11&type=section&id=About%20Ally%20Financial%20Inc%2E) Ally Financial Inc. is a diversified financial services company, recognized as the nation's largest all-digital bank and a leader in auto financing, offering a range of services including deposits, investment advisory, auto financing, insurance, and corporate finance solutions - Ally Financial Inc. (NYSE: ALLY) is a financial services company with the nation's largest all-digital bank and an industry-leading auto financing business[76](index=76&type=chunk) - The company provides deposits, securities brokerage, investment advisory services, auto financing, and insurance offerings[76](index=76&type=chunk) - Ally also includes a corporate finance business that offers capital for equity sponsors and middle-market companies[76](index=76&type=chunk) [Forward-Looking Statements](index=11&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements subject to various risks and uncertainties, including economic conditions, interest rates, and strategic initiatives, which could cause actual results to differ materially from expectations. Readers are cautioned not to rely solely on these statements and to consult SEC filings for further disclosures - The release contains forward-looking statements about financial and operating metrics, performance, and future capital allocation, identifiable by words like 'believe,' 'expect,' 'anticipate,' and 'outlook'[80](index=80&type=chunk) - These statements are subject to assumptions, risks, and uncertainties, including general economic conditions, interest rates, monetary policies, balance sheet composition, and strategic initiatives[80](index=80&type=chunk) - Actual future results may differ materially from forward-looking statements, and readers should consult SEC filings for further disclosures[81](index=81&type=chunk)[82](index=82&type=chunk) [Non-GAAP Financial Measures Disclaimer](index=11&type=section&id=Non-GAAP%20Financial%20Measures%20Disclaimer) The report includes specifically identified non-GAAP financial measures, which are supplementary to GAAP results and should not be considered in isolation. Reconciliations to GAAP are provided where feasible, but forward-looking non-GAAP measures may not be reconcilable due to forecasting difficulties - Non-GAAP financial measures supplement GAAP results and are useful to investors but should not be viewed in isolation or as a substitute for GAAP[83](index=83&type=chunk) - Reconciliations to comparable GAAP measures are provided, but forward-looking non-GAAP measures may not be reconcilable without unreasonable effort due to inherent forecasting difficulties[83](index=83&type=chunk) [Key Term Definitions](index=11&type=section&id=Key%20Term%20Definitions) This section defines key operational terms used throughout the report, such as 'loans,' 'operating leases,' 'consumer,' and 'commercial,' to ensure clarity and consistent understanding of Ally's financial activities - The term 'loans' refers to consumer and commercial products including loans, retail installment sales contracts, lines of credit, and other financing products, excluding operating leases[84](index=84&type=chunk) - 'Operating leases' are consumer- and commercial-vehicle lease agreements where Ally is the lessor and the lessee is generally not obligated to acquire ownership[84](index=84&type=chunk) - 'Consumer' encompasses all consumer products related to loan and operating-lease activities, plus commercial retail installment sales contracts[84](index=84&type=chunk) - 'Commercial' includes all commercial products associated with loan activities, excluding commercial retail installment sales contracts[84](index=84&type=chunk) [Contacts](index=11&type=section&id=Contacts) Contact information for Ally Investor Relations and Ally Communications (Media) is provided for inquiries - Investor Relations contact: Sean Leary, 704-444-4830, sean.leary@ally.com[85](index=85&type=chunk)[86](index=86&type=chunk) - Media contact: Peter Gilchrist, 704-644-6299, peter.gilchrist@ally.com[85](index=85&type=chunk)[86](index=86&type=chunk)

[Executive Summary & Highlights](index=2&type=section&id=Executive%20Summary%20%26%20Highlights) Webster Financial Corporation achieved record quarterly EPS and strong financial growth in Q3 2025, reflecting favorable strategic positioning and robust performance across key financial metrics [Third Quarter 2025 Performance Overview](index=2&type=section&id=Third%20Quarter%202025%20Performance%20Overview) Webster Financial Corporation reported strong financial results for Q3 2025, achieving record quarterly EPS of **$1.54 per diluted share**, up from **$1.10 in Q3 2024**, reflecting favorable strategic positioning and consistent excellence | Metric | Q3 2025 | Q3 2024 | Change (YoY) | | :-------------------------------- | :------ | :------ | :----------- | | Net Income Applicable to Common Stockholders | $254.1 million | $186.8 million | +35.06% | | Diluted EPS | $1.54 | $1.10 | +40.00% | - Chairman and CEO John R. Ciulla noted Webster continues to exhibit **strong financial results**, reflecting consistency and excellence since its founding[4](index=4&type=chunk) - CFO Neal Holland highlighted the company's growth, efficiency, and returns are reflective of its **favorable strategic positioning**, delivering record quarterly EPS[4](index=4&type=chunk) [Key Financial Highlights](index=2&type=section&id=Key%20Financial%20Highlights) Key financial highlights for Q3 2025 include robust revenue, significant growth in loans and deposits, strong capital and efficiency metrics, and share repurchases | Metric | Q3 2025 Value | | :-------------------------------- | :------------ | | Revenue | $732.6 million | | Period End Loans and Leases Balance | $55.1 billion | | Period End Deposits Balance | $68.2 billion | | Provision for Credit Losses | $44.0 million | | Return on Average Assets | 1.27% | | Return on Average Tangible Common Equity | 17.64% | | Net Interest Margin | 3.40% | | Common Equity Tier 1 Ratio | 11.40% | | Efficiency Ratio | 45.79% | | Tangible Common Equity Ratio | 7.50% | - Period end loans and leases balance increased by **$1.4 billion**, or **2.6%**, from the prior quarter[5](index=5&type=chunk) - Period end deposits balance increased by **$1.9 billion**, or **2.8%**, from the prior quarter[5](index=5&type=chunk) - Webster repurchased **2.2 million shares** under its share repurchase program[5](index=5&type=chunk) [Consolidated Financial Performance Analysis](index=3&type=section&id=Consolidated%20Financial%20Performance%20Analysis) This section analyzes Webster's consolidated financial performance, including net interest income, credit losses, non-interest items, taxes, and key balance sheet components [Net Interest Income and Margin](index=3&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased year-over-year due to higher average interest-earning assets, loans, and deposits, though net interest margin slightly decreased | Metric | Q3 2025 | Q3 2024 | Change (YoY) | | :-------------------------------- | :------ | :------ | :----------- | | Net Interest Income | $631.7 million | $589.9 million | +7.09% | | Net Interest Margin | 3.40% | 3.41% | -1 bps | | Average Interest-Earning Assets | $75.4 billion | $70.4 billion | +7.1% | | Average Loans and Leases | $54.4 billion | $51.8 billion | +5.1% | | Average Deposits | $67.3 billion | $62.6 billion | +7.6% | - The yield on interest-earning assets decreased by **24 basis points**, while the cost of deposits and interest-bearing liabilities decreased by **28 basis points**[9](index=9&type=chunk) [Provision for Credit Losses](index=3&type=section&id=Provision%20for%20Credit%20Losses) Provision for credit losses decreased quarter-over-quarter and year-over-year, while net charge-offs slightly increased, and allowance for credit losses remained stable relative to total loans | Metric | Q3 2025 | Q2 2025 | Q3 2024 | Change (QoQ) | Change (YoY) | | :-------------------------------- | :------ | :------ | :------ | :----------- | :----------- | | Provision for Credit Losses | $44.0 million | $46.5 million | $54.0 million | -5.38% | -18.52% | | Net Charge-Offs | $38.4 million | $36.4 million | $35.4 million | +5.49% | +8.47% | | Net Charge-Offs to Average Loans and Leases | 0.28% | 0.27% | 0.27% | +1 bps | +1 bps | | Allowance for Credit Losses to Total Loans and Leases | 1.32% | 1.35% | 1.32% | -3 bps | 0 bps | | Allowance for Credit Losses to Non-Performing Loans and Leases | 134% | 135% | 162% | -1% | -17.28% | [Non-Interest Income](index=3&type=section&id=Non-Interest%20Income) Total non-interest income significantly increased year-over-year, driven by higher client hedging, increased credit valuation adjustment, and a beneficial legal settlement, contrasting with prior year losses | Metric | Q3 2025 | Q3 2024 | Change (YoY) | | :-------------------- | :------ | :------ | :----------- | | Total Non-Interest Income | $100.9 million | $57.7 million | +$43.2 million | | Adjusted Non-Interest Income (excluding Q3 2024 specific items) | N/A | N/A | +$7.6 million | - Q3 2024 included a **$19.6 million net loss** on sale of investment securities and a **$16.0 million loss** on the exit of non-core operations[8](index=8&type=chunk) - The increase in non-interest income was primarily driven by increased client hedging activity, an increase in credit valuation adjustment, and a **$4.0 million beneficial legal settlement**[8](index=8&type=chunk) [Non-Interest Expense](index=4&type=section&id=Non-Interest%20Expense) Total non-interest expense increased year-over-year, mainly due to investments in human capital, increased performance-based incentives, business development, and risk management infrastructure, excluding prior year adjustments | Metric | Q3 2025 | Q3 2024 | Change (YoY) | | :-------------------- | :------ | :------ | :----------- | | Total Non-Interest Expense | $356.7 million | $349.0 million | +$7.7 million | | Adjusted Non-Interest Expense (excluding Q3 2024 specific items) | N/A | N/A | +$28.3 million | - Q3 2024 included a net **$20.6 million** related to strategic restructuring costs and other adjustments, and a benefit on the FDIC special assessment[10](index=10&type=chunk) - The increase was primarily driven by investments in human capital, increased performance-based incentives, business development, and risk management infrastructure[10](index=10&type=chunk) [Income Taxes](index=4&type=section&id=Income%20Taxes) Income tax expense increased year-over-year, reflecting higher income in 2025, partially offset by discrete tax benefits compared to prior year expense | Metric | Q3 2025 | Q3 2024 | Change (YoY) | | :---------------- | :------ | :------ | :----------- | | Income Tax Expense | $70.7 million | $51.7 million | +36.75% | | Effective Tax Rate | 21.3% | 21.1% | +0.2% | - The higher effective tax rate in the current quarter reflects the effects of a **higher level of income in 2025**, partially offset by the recognition of discrete tax benefits[11](index=11&type=chunk) [Investment Securities](index=4&type=section&id=Investment%20Securities) Total investment securities, net, increased quarter-over-quarter and year-over-year, with AFS net unrealized losses decreasing and HTM net unrealized losses increasing | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change (QoQ) | Change (YoY) | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total Investment Securities, Net | $18.0 billion | $17.8 billion | $17.2 billion | +1.12% | +4.65% | | AFS Net Unrealized Losses | $496.8 million | $568.3 million | $486.1 million | -12.58% | +2.20% | | HTM Net Unrealized Losses (not reflected) | $836.7 million | $901.6 million | $677.0 million | -7.19% | +23.59% | [Loans and Leases](index=4&type=section&id=Loans%20and%20Leases) Total loans and leases continued to grow quarter-over-quarter and year-over-year across all major categories, with significant increases in loan originations | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change (QoQ) | Change (YoY) | | :-------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total Loans and Leases | $55.1 billion | $53.7 billion | $51.9 billion | +2.61% | +6.17% | | Commercial Loans and Leases | +$619.7 million | N/A | +$1.8 billion | N/A | N/A | | Commercial Real Estate Loans | +$552.5 million | N/A | +$219.9 million | N/A | N/A | | Residential Mortgages | +$176.7 million | N/A | +$932.5 million | N/A | N/A | | Consumer Loans | +$31.2 million | N/A | +$160.8 million | N/A | N/A | | Loan Originations for Portfolio | $4.1 billion | $3.8 billion | $2.8 billion | +7.89% | +46.43% | [Asset Quality](index=5&type=section&id=Asset%20Quality) Total non-performing loans and leases increased year-over-year but decreased as a percentage of total loans quarter-over-quarter, while past due loans increased, driven by commercial real estate and residential mortgages | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change (QoQ) | Change (YoY) | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total Non-Performing Loans and Leases | $543.9 million | $534.5 million | $425.6 million | +1.76% | +27.79% | | Ratio of Non-Performing Loans and Leases to Total Loans and Leases | 0.99% | 1.00% | 0.82% | -1 bps | +17 bps | | Past Due Loans and Leases | $65.6 million | $54.8 million | $108.9 million | +19.71% | -39.76% | - The increase in past due loans from the prior quarter is primarily driven by commercial real estate and residential mortgages, partially offset by a decrease in commercial non-mortgage[17](index=17&type=chunk) [Deposits and Borrowings](index=5&type=section&id=Deposits%20and%20Borrowings) Total deposits continued to grow quarter-over-quarter and year-over-year, with core deposits forming a strong majority, while total borrowings decreased from prior periods | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change (QoQ) | Change (YoY) | | :-------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total Deposits | $68.2 billion | $66.3 billion | $64.5 billion | +2.87% | +5.73% | | Core Deposits to Total Deposits | 88.9% | 88.1% | 88.5% | +0.8% | +0.4% | | Loan to Deposit Ratio | 80.8% | 80.9% | 80.5% | -0.1% | +0.3% | | Total Borrowings | $3.9 billion | $4.6 billion | $4.1 billion | -15.22% | -4.88% | [Capital Ratios and Equity](index=5&type=section&id=Capital%20Ratios%20and%20Equity) Webster maintained strong capital ratios, with Common Equity Tier 1 ratio increasing quarter-over-quarter and year-over-year, alongside consistent growth in book value and tangible book value per common share | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change (QoQ) | Change (YoY) | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Return on Average Common Stockholders' Equity | 11.23% | 11.31% | 8.67% | -0.08% | +2.56% | | Return on Average Tangible Common Stockholders' Equity | 17.64% | 17.96% | 14.29% | -0.32% | +3.35% | | Tangible Equity Ratio | 7.86% | 7.82% | 7.85% | +0.04% | +0.01% | | Tangible Common Equity Ratio | 7.50% | 7.46% | 7.48% | +0.04% | +0.02% | | Common Equity Tier 1 Ratio | 11.40% | 11.35% | 11.25% | +0.05% | +0.15% | | Book Value Per Common Share | $55.69 | $54.19 | $52.00 | +2.77% | +7.10% | | Tangible Book Value Per Common Share | $36.42 | $35.13 | $33.26 | +3.67% | +9.49% | [Reportable Segment Performance](index=6&type=section&id=Reportable%20Segment%20Performance) This section details the financial performance of Webster's Commercial Banking, Healthcare Financial Services, and Consumer Banking segments, highlighting key trends [Commercial Banking](index=6&type=section&id=Commercial%20Banking) Webster's Commercial Banking segment, offering diverse financial solutions, experienced a year-over-year decrease in pre-tax, pre-provision net revenue due to lower net interest spread, despite loan and deposit growth - Commercial Banking delivers financial solutions to companies, investors, government entities, and institutions, with expertise in Commercial & Institutional Lending, Commercial Real Estate, Capital Markets, Capital Finance, and Treasury Management[18](index=18&type=chunk) | Metric | Q3 2025 | Q3 2024 | Change (YoY) | | :---------------------- | :------ | :------ | :----------- | | Net Interest Income (In thousands) | $328,306 | $338,424 | (3.0)% | | Non-Interest Income (In thousands) | $33,902 | $33,288 | 1.8% | | Operating Revenue (In thousands) | $362,208 | $371,712 | (2.6)% | | Non-Interest Expense (In thousands) | $108,590 | $100,892 | (7.6)% | | Pre-Tax, Pre-Provision Net Revenue (In thousands) | $253,618 | $270,820 | (6.4)% | | Loans and Leases (In millions) | $42,361 | $40,372 | 4.9% | | Deposits (In millions) | $18,261 | $17,124 | 6.6% | | AUA / AUM (off balance sheet, In millions) | $2,813 | $2,968 | (5.2)% | - Net interest income decreased primarily due to a **lower net spread on loans and leases**, partially offset by higher average loan and deposit balances[19](index=19&type=chunk) [Healthcare Financial Services](index=7&type=section&id=Healthcare%20Financial%20Services) The Healthcare Financial Services segment, including HSA Bank and Ametros, reported a strong increase in pre-tax net revenue, driven by higher deposit balances and increased non-interest income - Healthcare Financial Services includes HSA Bank, a leading administrator of health savings accounts, emergency savings accounts, and flexible spending accounts, and Ametros, a professional administrator of medical insurance claim settlements[20](index=20&type=chunk) | Metric | Q3 2025 | Q3 2024 | Change (YoY) | | :---------------------- | :------ | :------ | :----------- | | Net Interest Income (In thousands) | $100,041 | $93,940 | 6.5% | | Non-Interest Income (In thousands) | $27,304 | $26,541 | 2.9% | | Operating Revenue (In thousands) | $127,345 | $120,481 | 5.7% | | Non-Interest Expense (In thousands) | $54,492 | $54,023 | (0.9)% | | Pre-Tax Net Revenue (In thousands) | $72,853 | $66,458 | 9.6% | | Number of Accounts (thousands) | 3,475 | 3,341 | 4.0% | | Deposits (In millions) | $10,305 | $9,940 | 3.7% | | Linked Investment Accounts (off balance sheet, In millions) | $6,270 | $5,205 | 20.5% | | Total Footings (In millions) | $16,575 | $15,146 | 9.4% | - Net interest income increased primarily due to **higher deposit balances**, partially offset by lower deposit spreads, while non-interest income increased due to **higher interchange and medical fees**[21](index=21&type=chunk) [Consumer Banking](index=8&type=section&id=Consumer%20Banking) Webster's Consumer Banking segment, offering diverse financial solutions, maintained stable pre-tax, pre-provision net revenue year-over-year, with increased net interest income offset by decreased non-interest income and higher expenses - Consumer Banking provides deposit, lending, treasury management, and wealth management solutions through **196 banking centers** and digital platforms like BrioDirect[22](index=22&type=chunk) | Metric | Q3 2025 | Q3 2024 | Change (YoY) | | :---------------------- | :------ | :------ | :----------- | | Net Interest Income (In thousands) | $214,465 | $202,122 | 6.1% | | Non-Interest Income (In thousands) | $24,909 | $28,299 | (12.0)% | | Operating Revenue (In thousands) | $239,374 | $230,421 | 3.9% | | Non-Interest Expense (In thousands) | $125,397 | $116,253 | (7.9)% | | Pre-Tax, Pre-Provision Net Revenue (In thousands) | $113,977 | $114,168 | (0.2)% | | Loans (In millions) | $12,683 | $11,571 | 9.6% | | Deposits (In millions) | $27,548 | $27,020 | 2.0% | | AUA (off balance sheet, In millions) | $7,656 | $7,948 | (3.7)% | - Net interest income increased due to **higher average loan and deposit balances** coupled with a higher interest rate spread on loans, partially offset by a lower interest rate spread on deposits[23](index=23&type=chunk) - Non-interest income decreased primarily due to a **non-recurring gain on an investment portfolio sale in Q3 2024** and lower investment services income[23](index=23&type=chunk) [Company Information](index=9&type=section&id=Company%20Information) This section provides an overview of Webster Financial Corporation, including its structure, assets, and business lines, along with Q3 2025 earnings conference call and contact details [Company Overview](index=9&type=section&id=Company%20Overview) Webster Financial Corporation, headquartered in Stamford, CT, is the holding company for Webster Bank, N.A., a commercial bank with over **$83 billion in total consolidated assets**, operating across three key business lines - Webster Financial Corporation (NYSE:WBS) is the holding company for Webster Bank, N.A., headquartered in Stamford, CT[24](index=24&type=chunk) - Webster is a values-driven organization with more than **$83 billion in total consolidated assets**[24](index=24&type=chunk) - Webster Bank provides financial products and services to businesses, individuals, and families across three differentiated lines of business: Commercial Banking, Healthcare Financial Services, and Consumer Banking[24](index=24&type=chunk) [Conference Call & Contacts](index=9&type=section&id=Conference%20Call%20%26%20Contacts) Details for the Q3 2025 earnings conference call, including dial-in and webcast access, are provided, along with contact information for media and investor relations - A conference call for Q3 2025 earnings was scheduled for **October 17, 2025, at 9:00 a.m. Eastern Time**, with dial-in and webcast details provided[25](index=25&type=chunk) - A replay of the conference call would be available for **one week** via Webster's Investor Relations website[25](index=25&type=chunk) - Media contact: Alice Ferreira (203-578-2610, acferreira@websterbank.com); Investor contact: Emlen Harmon (212-309-7646, eharmon@websterbank.com)[26](index=26&type=chunk) [Legal & Accounting Disclosures](index=10&type=section&id=Legal%20%26%20Accounting%20Disclosures) This section outlines important legal and accounting disclosures, including disclaimers regarding forward-looking statements and explanations of non-GAAP financial measures [Forward-Looking Statements](index=10&type=section&id=Forward-Looking%20Statements) This section contains a standard disclaimer regarding forward-looking statements, emphasizing that actual results may differ materially from projections due to inherent uncertainties, risks, and changes in circumstances beyond Webster's control - Forward-looking statements are based on current expectations and assumptions, subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict[27](index=27&type=chunk) - Factors that could cause actual results to differ include Webster's ability to execute its business plan, regulatory changes, economic conditions, market volatility, and the impact of unrealized losses in financial instruments[27](index=27&type=chunk) - Webster undertakes no obligation to publicly update any forward-looking statement, except as required by law[27](index=27&type=chunk) [Non-GAAP Financial Measures](index=11&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the use of non-GAAP financial measures, such as the efficiency ratio and tangible equity ratios, which Webster believes provide useful information for understanding its financial position and performance - The press release includes non-GAAP financial measures like the efficiency ratio, return on average tangible common stockholders' equity, tangible equity ratio, tangible common equity ratio, tangible book value per common share, and core deposits[28](index=28&type=chunk) - Webster uses these non-GAAP measures for performance measurement, internal planning, and forecasting, believing they provide investors with a more complete understanding of factors and trends affecting its business[29](index=29&type=chunk) - Non-GAAP financial measures should not be considered a substitute for GAAP-basis financial measures and may not be comparable to those presented by other companies[31](index=31&type=chunk) [Financial Statements & Supplementary Data](index=12&type=section&id=Financial%20Statements%20%26%20Supplementary%20Data) This section provides comprehensive financial statements and supplementary data, including selected highlights, balance sheets, income statements, average balances, and detailed breakdowns of key financial metrics [Selected Financial Highlights](index=12&type=section&id=Selected%20Financial%20Highlights) This table summarizes key income, performance ratios, asset quality metrics, and equity/share-related data for the past five quarters, offering a quick overview of Webster's financial trends - The table presents key financial metrics including net income, EPS, return on assets, asset quality ratios, capital ratios, and per-share data across five quarters[33](index=33&type=chunk) [Consolidated Balance Sheets](index=13&type=section&id=Consolidated%20Balance%20Sheets) This table presents Webster's consolidated balance sheets for September 30, 2025, June 30, 2025, and September 30, 2024, detailing assets, liabilities, and stockholders' equity - Total assets increased to **$83.19 billion** at September 30, 2025, from **$81.91 billion** at June 30, 2025, and **$79.45 billion** at September 30, 2024[35](index=35&type=chunk) - Total deposits reached **$68.18 billion** at September 30, 2025, up from **$66.31 billion** at June 30, 2025, and **$64.51 billion** at September 30, 2024[35](index=35&type=chunk) - Common stockholders' equity stood at **$9.18 billion** at September 30, 2025, compared to **$9.05 billion** at June 30, 2025, and **$8.91 billion** at September 30, 2024[35](index=35&type=chunk) [Consolidated Statements of Income](index=14&type=section&id=Consolidated%20Statements%20of%20Income) These tables provide consolidated statements of income for the three and nine months ended September 30, 2025 and 2024, and for the past five quarters, detailing income and expense components - Net interest income for the three months ended September 30, 2025, was **$631.67 million**, up from **$589.88 million** in the same period of 2024[36](index=36&type=chunk) - Total non-interest income for Q3 2025 was **$100.91 million**, a significant increase from **$57.74 million** in Q3 2024[36](index=36&type=chunk) - Net income applicable to common stockholders for Q3 2025 was **$254.05 million**, compared to **$186.80 million** in Q3 2024[36](index=36&type=chunk) [Consolidated Average Balances, Interest, Average Yields/Rates, and Net Interest Margin](index=16&type=section&id=Consolidated%20Average%20Balances%2C%20Interest%2C%20Average%20Yields%2FRates%2C%20and%20Net%20Interest%20Margin) These tables present average balances, interest income/expense, and average yields/rates for interest-earning assets and liabilities on a fully tax-equivalent basis for Q3 2025 and 2024, including net interest margin - Average interest-earning assets for Q3 2025 were **$75.40 billion** with an average yield of **5.45%**, compared to **$70.42 billion** and **5.69%** in Q3 2024[38](index=38&type=chunk) - Average deposits and interest-bearing liabilities for Q3 2025 were **$71.02 billion** with an average rate of **2.21%**, compared to **$66.13 billion** and **2.49%** in Q3 2024[38](index=38&type=chunk) - Net interest margin was **3.40%** for Q3 2025, a slight decrease from **3.41%** in Q3 2024[38](index=38&type=chunk) [Loans and Leases (Five Quarter)](index=18&type=section&id=Loans%20and%20Leases%20(Five%20Quarter)) This table details actual and average balances of loans and leases by category for the past five quarters, including commercial, real estate, residential, and consumer segments - Total actual loans and leases increased to **$55.05 billion** at September 30, 2025, from **$51.95 billion** at September 30, 2024[42](index=42&type=chunk) - Commercial non-mortgage loans grew from **$18.66 billion** in Q3 2024 to **$20.65 billion** in Q3 2025[42](index=42&type=chunk) - Residential mortgages increased from **$8.58 billion** in Q3 2024 to **$9.51 billion** in Q3 2025[42](index=42&type=chunk) [Changes in Allowance for Credit Losses on Loans and Leases (Five Quarter)](index=19&type=section&id=Changes%20in%20Allowance%20for%20Credit%20Losses%20on%20Loans%20and%20Leases%20(Five%20Quarter)) This table tracks changes in the allowance for credit losses on loans and leases over the past five quarters, including provisions, charge-offs, and recoveries - The allowance for credit losses on loans and leases increased to **$727.90 million** at September 30, 2025, from **$687.80 million** at September 30, 2024[44](index=44&type=chunk) - Provision for credit losses was **$44.21 million** in Q3 2025, down from **$53.87 million** in Q3 2024[44](index=44&type=chunk) - Total net charge-offs for Q3 2025 were **$38.35 million**, compared to **$35.43 million** in Q3 2024[44](index=44&type=chunk) [Non-performing Assets and Past Due Loans and Leases (Five Quarter)](index=19&type=section&id=Non-performing%20Assets%20and%20Past%20Due%20Loans%20and%20Leases%20(Five%20Quarter)) This table provides a five-quarter breakdown of non-performing assets, including non-performing loans and leases by category, other real estate owned, and past due loans and leases - Total non-performing assets increased to **$545.33 million** at September 30, 2025, from **$427.27 million** at September 30, 2024[45](index=45&type=chunk) - Non-performing commercial non-mortgage loans increased from **$215.83 million** in Q3 2024 to **$223.40 million** in Q3 2025[45](index=45&type=chunk) - Total past due loans and leases (30-89 days and 90+ days) were **$65.63 million** at September 30, 2025, a decrease from **$108.93 million** at September 30, 2024[45](index=45&type=chunk) [Non-GAAP to GAAP Reconciliations](index=20&type=section&id=Non-GAAP%20to%20GAAP%20Reconciliations) These tables provide detailed reconciliations of various non-GAAP financial measures, including efficiency ratio and tangible equity ratios, to their most comparable GAAP measures for the past five quarters - The efficiency ratio was **45.79%** for Q3 2025, compared to **45.49%** for Q3 2024[46](index=46&type=chunk) - Return on average tangible common stockholders' equity was **17.64%** for Q3 2025, up from **14.29%** for Q3 2024[46](index=46&type=chunk) - Tangible book value per common share increased to **$36.42** at September 30, 2025, from **$33.26** at September 30, 2024[47](index=47&type=chunk)

[Executive Summary & Third Quarter 2025 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Third%20Quarter%202025%20Highlights) F.N.B. Corporation reported strong third-quarter 2025 earnings with record diluted EPS and revenue, driven by growth in net interest income and non-interest income, alongside improved capital levels and stable asset quality [Overall Financial Performance](index=1&type=section&id=Overall%20Financial%20Performance) F.N.B. Corporation reported strong third-quarter 2025 earnings, achieving record diluted EPS and revenue, driven by growth in net interest income, margin expansion, and non-interest income. The company also strengthened its capital levels and maintained solid asset quality | Metric | 3Q25 (GAAP) | 3Q24 (GAAP) | YoY Change | 3Q25 (Operating non-GAAP) | 3Q24 (Operating non-GAAP) | YoY Change (Operating) | | :----------------------------------- | :---------- | :---------- | :--------- | :------------------------ | :------------------------ | :----------------------- | | Net Income Available to Common Shareholders | $149.5 million | $110.1 million | +35.8% | $147.7 million | $122.2 million | +20.9% | | Earnings per Diluted Common Share | $0.41 | $0.30 | +36.7% | $0.41 | $0.34 | +20.6% | | Revenue | $457 million | N/A | N/A | N/A | N/A | N/A | | Tangible Book Value Per Common Share (non-GAAP) | $11.48 | $10.33 | +11.1% | N/A | N/A | N/A | - Pre-provision net revenue (non-GAAP) grew **11% linked-quarter**, contributing to positive operating leverage and a peer-leading efficiency ratio (non-GAAP) of **52%**[4](index=4&type=chunk) - Capital levels reached all-time highs with an estimated CET1 regulatory capital ratio of **11%** and a return on tangible common equity ratio (non-GAAP) of **15%**[4](index=4&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) The third quarter saw significant growth in average loans and deposits, record net interest income and non-interest income, and improved capital ratios, while maintaining stable asset quality | Metric | 3Q25 | 2Q25 | 3Q24 | YoY Change (3Q25 vs 3Q24) | QoQ Change (3Q25 vs 2Q25) | | :----------------------------------- | :----- | :----- | :----- | :------------------------ | :------------------------ | | Average Loans and Leases | $34.8 billion | N/A | $33.8 billion | +3.0% | +3.6% annualized | | Average Deposits | $37.9 billion | N/A | $35.6 billion | +6.4% | +8.2% annualized | | Loan-to-Deposit Ratio | 91% | 92% | 92% | -1 pp | -1 pp | | Net Interest Income | $359.3 million | $347.2 million | $323.3 million | +11.1% | +3.5% | | Net Interest Margin (FTE, non-GAAP) | 3.25% | 3.19% | 3.08% | +17 bps | +6 bps | | Non-Interest Income | $98.2 million | $91.0 million | $89.7 million | +9.5% | +7.9% | | Pre-provision Net Revenue (non-GAAP) | $213.9 million | $192.0 million | $163.6 million | +30.7% | +11.4% | | Provision for Credit Losses | $24.0 million | $25.6 million | $23.4 million | +2.6% | -6.3% | | CET1 Regulatory Capital Ratio (estimated) | 11.0% | 10.8% | 10.4% | +60 bps | +20 bps | | Tangible Common Equity to Tangible Assets (non-GAAP) | 8.7% | 8.5% | 8.2% | +50 bps | +20 bps | | Tangible Book Value per Common Share (non-GAAP) | $11.48 | $11.14 | $10.33 | +11.1% | +3.1% | | Common Stock Repurchased | $12 million (0.8M shares) | N/A | N/A | N/A | N/A | - Asset quality metrics remained solid, with the allowance for credit losses (ACL) to total loans and leases stable at **1.25%**[7](index=7&type=chunk) [Financial Performance Analysis - Comparison to Prior-Year Quarter (3Q24)](index=3&type=section&id=Financial%20Performance%20Analysis%20-%20Comparison%20to%20Prior-Year%20Quarter%20(3Q24)) This section details F.N.B. Corporation's year-over-year financial performance, highlighting growth in net interest income, loans, and deposits, alongside changes in expenses, credit quality, and capital ratios [Net Interest Income and Margin](index=3&type=section&id=Net%20Interest%20Income%20and%20Margin_YoY) Net interest income increased significantly year-over-year, driven by earning asset growth and lower interest-bearing deposit costs, despite a decrease in earning asset yields | Metric | 3Q25 | 3Q24 | YoY Change | | :-------------------------------- | :----- | :----- | :--------- | | Net Interest Income | $359.3 million | $323.3 million | +11.1% | | Net Interest Margin (FTE, non-GAAP) | 3.25% | 3.08% | +17 bps | | Yield on Earning Assets (non-GAAP) | 5.36% | 5.51% | -15 bps | | Yields on Loans | 5.79% | 6.03% | -24 bps | | Yields on Investment Securities | 3.58% | 3.13% | +45 bps | | Total Cost of Funds | 2.23% | 2.56% | -33 bps | | Interest-Bearing Deposit Costs | 2.66% | 3.08% | -42 bps | [Loan and Deposit Growth](index=3&type=section&id=Loan%20and%20Deposit%20Growth_YoY) Average loans and leases grew, primarily from consumer loans, while average deposits also increased, with a slight shift in funding mix towards interest-bearing products | Metric | 3Q25 | 3Q24 | YoY Change | | :-------------------------------- | :----- | :----- | :--------- | | Average Loans and Leases | $34.8 billion | $33.8 billion | +3.0% | | - Consumer Loans | +$994.7 million | N/A | N/A | | - Residential Mortgage Loans | +$1.1 billion | N/A | N/A | | - Commercial Leases | +$100.9 million | N/A | +14.7% | | - Indirect Auto Loans | -$222.3 million | N/A | N/A | | Average Deposits | $37.9 billion | $35.6 billion | +6.4% | | - Interest-Bearing Demand Deposits | +$2.1 billion | N/A | N/A | | - Time Deposits | +$261.3 million | N/A | N/A | | - Non-Interest-Bearing Demand Deposits | +$38.2 million | N/A | N/A | | - Savings Deposits | -$155.9 million | N/A | N/A | | Non-Interest-Bearing Demand Deposits as % of Total Deposits | 26% | 27% | -1 pp | | Loan-to-Deposit Ratio | 91% | 92% | -1 pp | [Non-Interest Income](index=3&type=section&id=Non-Interest%20Income_YoY) Non-interest income reached a record high, driven by strong performance in mortgage banking, capital markets, wealth management, and a significant recovery in other non-interest income | Metric | 3Q25 | 3Q24 | YoY Change | | :-------------------------------- | :----- | :----- | :--------- | | Total Non-Interest Income | $98.2 million | $89.7 million | +9.5% | | Mortgage Banking Operations Income | +$3.6 million | N/A | +65.8% | | Capital Markets Income | +$1.7 million | N/A | +27.1% | | Wealth Management Revenues | +$1.5 million | N/A | +8.0% | | Other Non-Interest Income | +$5.3 million | N/A | +135.6% | [Non-Interest Expense](index=4&type=section&id=Non-Interest%20Expense_YoY) Total non-interest expense decreased, but operating non-interest expense increased due to strategic hiring, risk management investments, and higher production-related compensation | Metric | 3Q25 | 3Q24 | YoY Change | | :-------------------------------- | :----- | :----- | :--------- | | Total Non-Interest Expense | $243.5 million | $249.4 million | -2.4% | | Operating Non-Interest Expense (non-GAAP) | N/A | N/A | +5.0% | | Salaries and Employee Benefits | N/A | N/A | +4.4% | | Outside Services | N/A | N/A | +6.8% | | Other Non-Interest Expense (operating basis) | N/A | N/A | +17.4% | [Credit Quality and Provision for Credit Losses](index=4&type=section&id=Credit%20Quality%20and%20Provision%20for%20Credit%20Losses_YoY) The provision for credit losses slightly increased, while net charge-offs decreased, reflecting proactive loan portfolio management. Asset quality metrics remained solid, with a stable ACL ratio | Metric | 3Q25 | 3Q24 | YoY Change | | :-------------------------------- | :----- | :----- | :--------- | | Provision for Credit Losses | $24.0 million | $23.4 million | +2.6% | | Net Charge-Offs | $19.7 million | $21.5 million | -8.4% | | Net Charge-Offs (annualized % of total average loans) | 0.22% | 0.25% | -3 bps | | Allowance for Credit Losses (ACL) | $437.3 million | $420.2 million | +4.1% | | ACL to Total Loans and Leases | 1.25% | 1.25% | Stable | | Non-Performing Loans and OREO to Total Loans and OREO | 0.37% | 0.39% | -2 bps | | Total Delinquency | 0.65% | 0.79% | -14 bps | [Capital and Shareholder Value](index=4&type=section&id=Capital%20and%20Shareholder%20Value_YoY) Capital ratios improved significantly year-over-year, with a notable increase in the CET1 ratio and tangible book value per common share, despite the impact of AOCI | Metric | 3Q25 | 3Q24 | YoY Change | | :-------------------------------- | :----- | :----- | :--------- | | Effective Tax Rate | 21.3% | 21.4% | -0.1 pp | | CET1 Regulatory Capital Ratio (estimated) | 11.0% | 10.4% | +60 bps | | Tangible Book Value per Common Share (non-GAAP) | $11.48 | $10.33 | +11.1% | | AOCI Reduction to TBV per Share (non-GAAP) | $0.22 | $0.43 | -$0.21 | [Financial Performance Analysis - Comparison to Prior Quarter (2Q25)](index=4&type=section&id=Financial%20Performance%20Analysis%20-%20Comparison%20to%20Prior%20Quarter%20(2Q25)) This section analyzes F.N.B. Corporation's quarter-over-quarter financial performance, focusing on trends in net interest income, loan and deposit growth, non-interest items, credit quality, and capital [Net Interest Income and Margin](index=4&type=section&id=Net%20Interest%20Income%20and%20Margin_QoQ) Net interest income and margin both increased linked-quarter, driven by earning asset growth, lower cost of funds, and the impact of an additional day in the quarter | Metric | 3Q25 | 2Q25 | QoQ Change | | :-------------------------------- | :----- | :----- | :--------- | | Net Interest Income | $359.3 million | $347.2 million | +3.5% | | Net Interest Margin (FTE, non-GAAP) | 3.25% | 3.19% | +6 bps | | Total Yield on Earning Assets (non-GAAP) | 5.36% | 5.33% | +3 bps | | Total Cost of Funds | 2.23% | 2.26% | -3 bps | | Cost of Interest-Bearing Deposits | 2.66% | 2.66% | Stable | | Total Borrowing Costs | 4.65% | 4.71% | -6 bps | [Loan and Deposit Trends](index=4&type=section&id=Loan%20and%20Deposit%20Trends_QoQ) Average loans and leases increased, primarily due to consumer loan growth, while average deposits also saw organic growth across all categories, leading to an improved loan-to-deposit ratio | Metric | 3Q25 | 2Q25 | QoQ Change | | :-------------------------------- | :----- | :----- | :--------- | | Average Loans and Leases | $34.8 billion | $34.5 billion | +0.9% (+3.6% annualized) | | - Average Consumer Loans | +$431.2 million | N/A | +13.0% annualized | | - Average Residential Mortgages | +$384.4 million | N/A | N/A | | - Average Commercial Loans and Leases | -$119.4 million | N/A | -2.2% annualized | | Average Deposits | $37.9 billion | $37.1 billion | +$766.5 million | | - Interest-Bearing Demand Deposits | +$375.2 million | N/A | N/A | | - Time Deposits | +$254.2 million | N/A | N/A | | - Non-Interest-Bearing Deposits | +$92.7 million | N/A | N/A | | - Savings Deposit Balances | +$44.4 million | N/A | N/A | | Non-Interest-Bearing Demand Deposits as % of Total Deposits | 26% | 26% | Stable | | Loan-to-Deposit Ratio | 91% | 92% | -1 pp | [Non-Interest Income](index=5&type=section&id=Non-Interest%20Income_QoQ) Non-interest income reached a new record, driven by strong increases in mortgage banking operations, capital markets income, and a significant recovery in other non-interest income | Metric | 3Q25 | 2Q25 | QoQ Change | | :-------------------------------- | :----- | :----- | :--------- | | Total Non-Interest Income | $98.2 million | $91.0 million | +7.9% | | Mortgage Banking Operations Income | +$2.9 million | N/A | +45.6% | | Capital Markets Income | +$1.0 million | N/A | +14.2% | | Other Non-Interest Income | +$3.2 million | N/A | +53.3% | [Non-Interest Expense](index=5&type=section&id=Non-Interest%20Expense_QoQ) Total non-interest expense decreased, and operating non-interest expense saw a slight decrease, contributing to an improved efficiency ratio | Metric | 3Q25 | 2Q25 | QoQ Change | | :-------------------------------- | :----- | :----- | :--------- | | Total Non-Interest Expense | $243.5 million | $246.2 million | -1.1% | | Operating Non-Interest Expense (non-GAAP) | N/A | N/A | -0.2% | | Salaries and Employee Benefits | N/A | N/A | +1.3% | | Net Occupancy and Equipment | N/A | N/A | -5.2% | | Efficiency Ratio (non-GAAP) | 52.4% | 54.8% | -2.4 pp | [Credit Quality and Provision for Credit Losses](index=5&type=section&id=Credit%20Quality%20and%20Provision%20for%20Credit%20Losses_QoQ) The provision for credit losses decreased, and net charge-offs also declined, reflecting continued proactive management. While non-performing loans and delinquency slightly increased, overall asset quality remained solid | Metric | 3Q25 | 2Q25 | QoQ Change | | :-------------------------------- | :----- | :----- | :--------- | | Provision for Credit Losses | $24.0 million | $25.6 million | -6.3% | | Net Charge-Offs | $19.7 million | $21.8 million | -9.6% | | Net Charge-Offs (annualized % of total average loans) | 0.22% | 0.25% | -3 bps | | Allowance for Credit Losses (ACL) | $437.3 million | $432.1 million | +1.2% | | ACL to Total Loans and Leases | 1.25% | 1.25% | Stable | | Non-Performing Loans and OREO to Total Loans and OREO | 0.37% | 0.34% | +3 bps | | Total Delinquency | 0.65% | 0.62% | +3 bps | [Capital and Shareholder Value](index=5&type=section&id=Capital%20and%20Shareholder%20Value_QoQ) Capital ratios continued to improve linked-quarter, with increases in the CET1 ratio and tangible book value per common share, despite a minor reduction from AOCI | Metric | 3Q25 | 2Q25 | QoQ Change | | :-------------------------------- | :----- | :----- | :--------- | | Effective Tax Rate | 21.3% | 21.5% | -0.2 pp | | CET1 Regulatory Capital Ratio (estimated) | 11.0% | 10.8% | +20 bps | | Tangible Book Value per Common Share (non-GAAP) | $11.48 | $11.14 | +$0.34 | | AOCI Reduction to TBV per Share (non-GAAP) | $0.22 | $0.26 | -$0.04 | [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) This section presents F.N.B. Corporation's consolidated financial statements, including income, balance sheets, average balances, key performance and capital ratios, and detailed loan portfolio and asset quality data [Consolidated Statements of Income](index=9&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated statements of income show a significant increase in net interest income and total non-interest income for both the quarter and year-to-date periods, leading to higher net income available to common shareholders | Metric (in thousands) | 3Q25 | 2Q25 | 3Q24 | 9M25 | 9M24 | | :-------------------------------- | :----- | :----- | :----- | :----- | :----- | | Total Interest Income | $595,972 | $582,641 | $582,772 | $1,738,050 | $1,683,457 | | Total Interest Expense | $236,700 | $235,445 | $259,443 | $707,737 | $725,230 | | Net Interest Income | $359,272 | $347,196 | $323,329 | $1,030,313 | $958,227 | | Provision for Credit Losses | $23,991 | $25,601 | $23,438 | $67,081 | $57,517 | | Total Non-Interest Income | $98,170 | $91,015 | $89,688 | $276,951 | $265,472 | | Total Non-Interest Expense | $243,535 | $246,225 | $249,431 | $736,571 | $713,139 | | Income Before Income Taxes | $189,916 | $166,385 | $140,148 | $503,612 | $453,043 | | Net Income Available to Common Shareholders | $149,509 | $130,670 | $110,103 | $396,694 | $349,466 | | Earnings per Diluted Common Share | $0.41 | $0.36 | $0.30 | $1.09 | $0.96 | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheet shows growth in total assets, primarily driven by increases in loans and leases and interest-bearing deposits with banks. Total deposits also increased, while long-term borrowings decreased | Metric (in millions) | 3Q25 | 2Q25 | 3Q24 | QoQ Change | YoY Change | | :-------------------------------- | :----- | :----- | :----- | :--------- | :--------- | | Total Assets | $49,889 | $49,725 | $47,976 | +0.3% | +4.0% | | Cash and Cash Equivalents | $2,413 | $2,427 | $2,078 | -0.6% | +16.1% | | Loans and Leases, net | $34,520 | $34,247 | $33,297 | +0.8% | +3.7% | | Total Deposits | $38,441 | $37,748 | $36,771 | +1.8% | +4.5% | | - Non-Interest-Bearing Demand | $9,969 | $9,872 | $9,870 | +1.0% | +1.0% | | - Interest-Bearing Demand | $17,803 | $17,292 | $15,999 | +3.0% | +11.3% | | Short-term Borrowings | $1,905 | $1,876 | $1,562 | +1.5% | +22.0% | | Long-term Borrowings | $2,099 | $2,692 | $2,515 | -22.0% | -16.5% | | Total Liabilities | $43,253 | $43,201 | $41,727 | +0.1% | +3.7% | | Total Shareholders' Equity | $6,636 | $6,524 | $6,249 | +1.7% | +6.2% | [Average Balances and Interest Rates](index=11&type=section&id=Average%20Balances%20and%20Interest%20Rates) Average interest-earning assets and total deposits and borrowings increased, with a notable improvement in net interest margin and spread for both the quarter and year-to-date periods | Metric (in thousands) | 3Q25 | 2Q25 | 3Q24 | 9M25 | 9M24 | | :-------------------------------- | :----- | :----- | :----- | :----- | :----- | | Average Total Interest Earning Assets | $44,479,767 | $44,043,377 | $42,307,326 | $43,992,566 | $41,464,410 | | Yield on Earning Assets (FTE) | 5.36% | 5.33% | 5.51% | 5.31% | 5.45% | | Average Total Deposits and Borrowings | $42,085,678 | $41,742,880 | $40,259,839 | $41,670,033 | $39,442,596 | | Cost of Funds | 2.23% | 2.26% | 2.56% | 2.27% | 2.46% | | Net Interest Income (FTE) | $362,421 | $350,269 | $326,259 | $1,039,472 | $966,982 | | Net Interest Spread | 2.44% | 2.37% | 2.12% | 2.34% | 2.17% | | Net Interest Margin (FTE) | 3.25% | 3.19% | 3.08% | 3.16% | 3.11% | [Performance and Capital Ratios](index=13&type=section&id=Performance%20and%20Capital%20Ratios) Key performance ratios, including return on average equity and tangible equity, showed improvement, alongside stronger capital ratios like CET1 and tangible common equity to tangible assets | Metric | 3Q25 | 2Q25 | 3Q24 | 9M25 | 9M24 | | :-------------------------------- | :----- | :----- | :----- | :----- | :----- | | Return on average equity | 9.02% | 8.09% | 7.10% | 8.19% | 7.81% | | Return on average tangible common equity (non-GAAP) | 14.94% | 13.57% | 12.43% | 13.74% | 13.63% | | Return on average assets | 1.20% | 1.07% | 0.92% | 1.08% | 1.02% | | Efficiency ratio (non-GAAP) | 52.38% | 54.83% | 55.16% | 55.13% | 55.18% | | Common equity tier 1 (estimated) | 11.0% | 10.8% | 10.4% | N/A | N/A | | Tangible common equity / tangible assets (non-GAAP) | 8.69% | 8.47% | 8.17% | N/A | N/A | | Book value per common share | $18.52 | $18.17 | $17.38 | N/A | N/A | | Tangible book value per common share (non-GAAP) | $11.48 | $11.14 | $10.33 | N/A | N/A | | Dividend payout ratio (common) | 29.05% | 33.34% | 39.58% | 33.02% | 37.51% | [Loan and Lease Portfolio Details](index=14&type=section&id=Loan%20and%20Lease%20Portfolio%20Details) The loan and lease portfolio showed overall growth, driven by consumer loans, particularly residential mortgages, while commercial real estate saw a slight decrease | Loan Type (in millions) | 3Q25 (Period End) | 2Q25 (Period End) | 3Q24 (Period End) | QoQ Change | YoY Change | | :-------------------------------- | :---------------- | :---------------- | :---------------- | :--------- | :--------- | | Total Loans and Leases | $34,957 | $34,679 | $33,717 | +0.8% | +3.7% | | Commercial Loans and Leases | $21,140 | $21,198 | $21,182 | -0.3% | -0.2% | | - Commercial Real Estate | $12,568 | $12,686 | $12,812 | -0.9% | -1.9% | | - Commercial Leases | $829 | $774 | $709 | +7.1% | +16.9% | | Consumer Loans | $13,817 | $13,481 | $12,535 | +2.5% | +10.2% | | - Residential Mortgages | $8,888 | $8,595 | $7,789 | +3.4% | +14.1% | | - Indirect Installment | $767 | $780 | $706 | -1.7% | +8.6% | | Loan Type (in millions) | 3Q25 (Average) | 2Q25 (Average) | 3Q24 (Average) | QoQ Change | YoY Change | | :-------------------------------- | :------------- | :------------- | :------------- | :--------- | :--------- | | Total Loans and Leases | $34,814 | $34,502 | $33,803 | +0.9% | +3.0% | | Commercial Loans and Leases | $21,174 | $21,294 | $21,158 | -0.6% | +0.1% | | Consumer Loans | $13,640 | $13,209 | $12,645 | +3.3% | +7.9% | [Asset Quality Data](index=15&type=section&id=Asset%20Quality%20Data) Asset quality metrics remained solid, with non-performing assets and delinquency ratios showing minor fluctuations but overall stability | Metric (in millions) | 3Q25 | 2Q25 | 3Q24 | QoQ Change | YoY Change | | :-------------------------------- | :----- | :----- | :----- | :--------- | :--------- | | Non-Performing Assets | $128 | $119 | $131 | +7.6% | -2.3% | | Non-performing loans / total loans and leases | 0.36% | 0.34% | 0.38% | +2 bps | -2 bps | | Non-performing loans plus OREO / total loans and leases plus OREO | 0.37% | 0.34% | 0.39% | +3 bps | -2 bps | | Past due and non-accrual loans | $227 | $216 | $265 | +5.1% | -14.3% | | Past due and non-accrual loans / total loans and leases | 0.65% | 0.62% | 0.79% | +3 bps | -14 bps | [Allowance for Credit Losses Rollforward](index=16&type=section&id=Allowance%20for%20Credit%20Losses%20Rollforward) The Allowance for Credit Losses (ACL) on loans and leases increased, reflecting overall loan growth, while the ratio of ACL to total loans remained stable. Net loan charge-offs decreased quarter-over-quarter | Metric (in millions) | 3Q25 | 2Q25 | 3Q24 | QoQ Change | YoY Change | | :-------------------------------- | :----- | :----- | :----- | :--------- | :--------- | | ACL on Loans and Leases (End of Period) | $437.3 | $432.1 | $420.2 | +1.2% | +4.1% | | Provision for Credit Losses | $24.9 | $25.0 | $22.9 | -0.3% | +8.9% | | Net Loan (Charge-offs) / Recoveries | ($19.7) | ($21.8) | ($21.5) | -9.6% | -8.2% | | ACL on Loans and Leases / Total Loans and Leases | 1.25% | 1.25% | 1.25% | Stable | Stable | | ACL on Loans and Leases / Total Non-Performing Loans | 349.9% | 370.7% | 326.7% | -20.8 pp | +23.2 pp | | Net Loan Charge-offs (annualized) / Total Average Loans and Leases | 0.22% | 0.25% | 0.25% | -3 bps | -3 bps | [Non-GAAP Financial Measures Reconciliation](index=17&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section provides reconciliations of F.N.B. Corporation's non-GAAP financial measures to their most directly comparable GAAP equivalents, offering insights into operating performance and tangible metrics [Operating Net Income and EPS Reconciliation](index=17&type=section&id=Operating%20Net%20Income%20and%20EPS%20Reconciliation) This section reconciles GAAP net income and EPS to operating (non-GAAP) figures by adjusting for significant items such as FDIC special assessment, software impairment, and loss related to indirect auto loan sales | Metric (in thousands, except per share) | 3Q25 | 2Q25 | 3Q24 | 9M25 | 9M24 | | :--------------------------------------- | :----- | :----- | :----- | :----- | :----- | | Net income available to common shareholders (GAAP) | $149,509 | $130,670 | $110,103 | $396,694 | $349,466 | | Adjustments (after-tax) | ($1,795) | $0 | $12,047 | ($1,795) | $19,056 | | Operating net income available to common shareholders (non-GAAP) | $147,714 | $130,670 | $122,160 | $394,899 | $368,522 | | Earnings per diluted common share (GAAP) | $0.41 | $0.36 | $0.30 | $1.09 | $0.96 | | Adjustments (per share) | ($0.01) | $0.00 | $0.04 | ($0.01) | $0.06 | | Operating earnings per diluted common share (non-GAAP) | $0.41 | $0.36 | $0.34 | $1.09 | $1.02 | [Return on Average Tangible Equity/Common Equity/Assets Reconciliation](index=18&type=section&id=Return%20on%20Average%20Tangible%20Equity%2FCommon%20Equity%2FAssets%20Reconciliation) This section provides reconciliations for various return metrics, adjusting for intangible assets to present tangible returns on equity, common equity, and assets, which are key non-GAAP performance indicators | Metric | 3Q25 | 2Q25 | 3Q24 | 9M25 | 9M24 | | :--------------------------------------- | :----- | :----- | :----- | :----- | :----- | | Return on average tangible equity (non-GAAP) | 14.94% | 13.57% | 12.43% | 13.74% | 13.79% | | Return on average tangible common equity (non-GAAP) | 14.94% | 13.57% | 12.43% | 13.74% | 13.63% | | Return on average tangible assets (non-GAAP) | 1.29% | 1.15% | 1.01% | 1.17% | 1.11% | [Tangible Book Value and Tangible Common Equity to Tangible Assets Reconciliation](index=19&type=section&id=Tangible%20Book%20Value%20and%20Tangible%20Common%20Equity%20to%20Tangible%20Assets%20Reconciliation) This section reconciles GAAP shareholders' equity and total assets to their tangible counterparts by excluding intangible assets, providing tangible book value per common share and the tangible common equity to tangible assets ratio | Metric (in thousands, except per share) | 3Q25 | 2Q25 | 3Q24 | | :--------------------------------------- | :----- | :----- | :----- | | Total shareholders' equity (GAAP) | $6,635,620 | $6,523,791 | $6,248,456 | | Less: Intangible assets | ($2,520,013) | ($2,524,005) | ($2,533,856) | | Tangible common equity (non-GAAP) | $4,115,607 | $3,999,786 | $3,714,600 | | Tangible book value per common share (non-GAAP) | $11.48 | $11.14 | $10.33 | | Total assets (GAAP) | $49,888,522 | $49,724,837 | $47,975,574 | | Less: Intangible assets | ($2,520,013) | ($2,524,005) | ($2,533,856) | | Tangible assets (non-GAAP) | $47,368,509 | $47,200,832 | $45,441,718 | | Tangible common equity to tangible assets (non-GAAP) | 8.69% | 8.47% | 8.17% | [Pre-provision Net Revenue and Efficiency Ratio Reconciliation](index=20&type=section&id=Pre-provision%20Net%20Revenue%20and%20Efficiency%20Ratio%20Reconciliation) This section reconciles reported pre-provision net revenue and the efficiency ratio to their operating (non-GAAP) equivalents by adjusting for specific non-recurring or non-core items | Metric (in thousands) | 3Q25 | 2Q25 | 3Q24 | 9M25 | 9M24 | | :--------------------------------------- | :----- | :----- | :----- | :----- | :----- | | Pre-provision net revenue (reported) (non-GAAP) | $213,907 | $191,986 | $163,586 | $570,693 | $510,560 | | Operating pre-provision net revenue (non-GAAP) | $211,635 | $191,986 | $178,848 | $568,421 | $529,625 | | Efficiency ratio (FTE) (non-GAAP) | 52.38% | 54.83% | 55.16% | 55.13% | 55.18% | [Corporate Information & Disclosures](index=5&type=section&id=Corporate%20Information%20%26%20Disclosures) This section outlines F.N.B. Corporation's use of non-GAAP measures, cautionary statements regarding forward-looking information, conference call details, and a brief overview of the company's operations [Use of Non-GAAP Financial Measures](index=5&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) F.N.B. Corporation uses non-GAAP financial measures to provide investors with a clearer understanding of underlying business performance and trends, emphasizing that these are supplemental and not substitutes for GAAP results. Reconciliations are provided for transparency - Non-GAAP measures like operating net income, operating EPS, tangible book value, and efficiency ratio are used by management to assess core business activities and facilitate peer comparisons[23](index=23&type=chunk)[24](index=24&type=chunk) - Certain items, such as the FDIC special assessment, are excluded from operating results as they are considered significant and outside ordinary banking activities[25](index=25&type=chunk) - Net interest margin and efficiency ratio are calculated on a taxable-equivalent basis for peer comparison, adjusting tax-exempt income to be equivalent to taxable investments[26](index=26&type=chunk) [Cautionary Statement Regarding Forward-Looking Information](index=6&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Information) This section warns investors about forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially. It advises against undue reliance on these statements and refers to detailed risk factors in SEC filings - Forward-looking statements are based on current assumptions and are inherently uncertain, covering financial condition, results of operations, plans, and future performance[27](index=27&type=chunk) - Key risk factors include credit risk, volatility of mortgage banking, changes in interest rates, liquidity, regulatory limits, and economic conditions[28](index=28&type=chunk)[34](index=34&type=chunk) - Investors should consult the company's 2024 Annual Report on Form 10-K and subsequent 2025 Quarterly Reports on Form 10-Q for a comprehensive list of risk factors[29](index=29&type=chunk) [Conference Call Details](index=7&type=section&id=Conference%20Call%20Details) F.N.B. Corporation announced details for its third-quarter 2025 earnings conference call, including webcast access, dial-in information for Q&A, and replay availability - A live listen-only webcast of the conference call will be available on the Corporation's website under the Investor Relations section[32](index=32&type=chunk) - Participants can pre-register for the Q&A portion of the call to receive a conference passcode and unique PIN[33](index=33&type=chunk) - Presentation slides and the earnings release will be available on the website, and a replay of the call will be accessible via the webcast link[35](index=35&type=chunk) [About F.N.B. Corporation](index=8&type=section&id=About%20F.N.B.%20Corporation) F.N.B. Corporation is a diversified financial services company headquartered in Pittsburgh, Pennsylvania, operating across seven states and the District of Columbia, offering a full range of commercial banking, consumer banking, and wealth management solutions - FNB operates in major metropolitan areas including Pittsburgh, Baltimore, Cleveland, Washington D.C., Charlotte, Raleigh, Durham, and Charleston[36](index=36&type=chunk) - The company has total assets of **$50 billion** and approximately **350 banking offices**[36](index=36&type=chunk) - Services include corporate banking, small business banking, investment real estate financing, deposit products, mortgage lending, consumer lending, asset management, private banking, and insurance[37](index=37&type=chunk)

GAAP-Basis Financial Information [4-Year Summary of Results](index=2&type=section&id=4-Year%20Summary%20of%20Results) This section provides a four-year overview of State Street Corporation's key financial results from 2021 to 2024, including total revenue, net income, diluted earnings per common share, and significant balance sheet items like total assets and deposits, along with critical ratios such as return on average common equity and regulatory capital ratios 4-Year Financial Summary (2021-2024) | Metric | 2021 | 2022 | 2023 | 2024 | | :----------------------------------- | :------- | :------- | :------- | :------- | | Total revenue (millions) | $12,027 | $12,148 | $11,945 | $13,000 | | Net income (millions) | $2,693 | $2,774 | $1,944 | $2,687 | | Diluted earnings per common share | $7.19 | $7.19 | $5.58 | $8.21 | | Total assets (millions) | $299,743 | $286,430 | $274,696 | $311,723 | | Total deposits (millions) | $235,404 | $222,874 | $205,111 | $225,611 | | Assets under custody and/or administration (trillions) | $43.68 | $36.74 | $41.81 | $46.56 | | Assets under management (trillions) | $4.14 | $3.48 | $4.13 | $4.72 | | Return on average common equity | 10.7 % | 11.1 % | 8.2 % | 11.1 % | | Pre-tax margin | 26.4 % | 27.4 % | 19.4 % | 26.1 % | | Common equity tier 1 ratio | 14.3 % | 13.6 % | 11.6 % | 10.9 % | [Consolidated Results of Operations](index=3&type=section&id=Consolidated%20Results%20of%20Operations) The consolidated results of operations detail quarterly and year-to-date financial performance, showing an 8.8% increase in total revenue for 3Q25 compared to 3Q24, driven by growth in fee revenue, particularly management fees and foreign exchange trading services. Net income also saw a significant increase of 17.9% in 3Q25 year-over-year, while expenses grew at a slower pace Key Revenue Components (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 (millions) | 3Q25 (millions) | % Change 3Q25 vs 3Q24 | YTD2024 (millions) | YTD2025 (millions) | % Change YTD2025 vs YTD2024 | | :---------------------------- | :-------------- | :-------------- | :-------------------- | :----------------- | :----------------- | :-------------------------- | | Servicing fees | $1,266 | $1,357 | 7.2 % | $3,733 | $3,936 | 5.4 % | | Management fees | $527 | $612 | 16.1 % | $1,548 | $1,736 | 12.1 % | | Foreign exchange trading services | $374 | $416 | 11.2 % | $1,041 | $1,209 | 16.1 % | | Total fee revenue | $2,616 | $2,829 | 8.1 % | $7,494 | $8,118 | 8.3 % | | Net interest income | $723 | $715 | (1.1) % | $2,174 | $2,158 | (0.7) % | | Total revenue | $3,259 | $3,545 | 8.8 % | $9,588 | $10,277 | 7.2 % | Key Expense and Income Metrics (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 (millions) | 3Q25 (millions) | % Change 3Q25 vs 3Q24 | YTD2024 (millions) | YTD2025 (millions) | % Change YTD2025 vs YTD2024 | | :--------------------------------- | :-------------- | :-------------- | :-------------------- | :----------------- | :----------------- | :-------------------------- | | Total expenses | $2,308 | $2,434 | 5.5 % | $7,090 | $7,413 | 4.6 % | | Income before income tax expense | $925 | $1,102 | 19.1 % | $2,435 | $2,813 | 15.5 % | | Net income | $730 | $861 | 17.9 % | $1,904 | $2,198 | 15.4 % | | Diluted earnings per common share | $2.26 | $2.78 | 23.0 % | $5.77 | $6.98 | 21.0 % | | Assets under custody and/or administration (billions) | $46,759 | $51,664 | 10.5 % | $46,759 | $51,664 | 10.5 % | | Assets under management (billions) | $4,732 | $5,446 | 15.1 % | $4,732 | $5,446 | 15.1 % | [Consolidated Statement of Condition](index=5&type=section&id=Consolidated%20Statement%20of%20Condition) The consolidated statement of condition presents the company's financial position as of September 30, 2025, showing a 9.6% increase in total assets year-over-year, reaching $371.07 billion. Total deposits also grew by 13.2% to $279.999 billion, while total shareholders' equity increased by 7.0% to $27.642 billion Key Balance Sheet Items (As of September 30, 2025) | Metric | Sep 30, 2024 (millions) | Jun 30, 2025 (millions) | Sep 30, 2025 (millions) | % Change 3Q25 vs 3Q24 | % Change 3Q25 vs 2Q25 | | :---------------------------------- | :---------------------- | :---------------------- | :---------------------- | :-------------------- | :-------------------- | | Cash and due from banks | $4,067 | $4,020 | $4,756 | 16.9 % | 18.3 % | | Total investment securities | $106,330 | $113,889 | $110,377 | 3.8 % | (3.1) % | | Loans, net | $41,799 | $47,100 | $46,470 | 11.2 % | (1.3) % | | Total assets | $338,481 | $376,717 | $371,070 | 9.6 % | (1.5) % | | Total deposits | $247,429 | $283,024 | $279,999 | 13.2 % | (1.1) % | | Securities sold under repurchase agreements | $2,119 | $2,377 | $206 | (90.3) % | (91.3) % | | Long-term debt | $20,902 | $25,911 | $24,688 | 18.1 % | (4.7) % | | Total liabilities | $312,653 | $349,410 | $343,428 | 9.8 % | (1.7) % | | Total shareholders' equity | $25,828 | $27,307 | $27,642 | 7.0 % | 1.2 % | [Average Statement of Condition - Rates Earned and Paid - Fully Taxable-Equivalent Basis](index=6&type=section&id=Average%20Statement%20of%20Condition%20-%20Rates%20Earned%20and%20Paid%20-%20Fully%20Taxable-Equivalent%20Basis) This section provides a quarterly breakdown of average interest-earning assets and interest-bearing liabilities, along with their respective average rates earned and paid on a fully taxable-equivalent basis. For 3Q25, total interest-earning assets increased by 9.6% year-over-year, while the net interest margin slightly decreased to 0.96% from 1.13% in 3Q24 Average Interest-Earning Assets and Rates (3Q25 vs 3Q24) | Metric | 3Q24 Average Balance (millions) | 3Q24 Average Rate | 3Q25 Average Balance (millions) | 3Q25 Average Rate | % Change 3Q25 vs 3Q24 Balance | | :------------------------------------ | :------------------------------ | :---------------- | :------------------------------ | :---------------- | :---------------------------- | | Interest-bearing deposits with banks, net | $86,884 | 4.02 % | $88,130 | 3.03 % | 1.4 % | | Total investment securities | $107,364 | 3.73 % | $111,821 | 3.58 % | 4.2 % | | Loans | $39,782 | 5.79 % | $46,500 | 4.98 % | 16.9 % | | Total interest-earning assets | $269,506 | 4.55 % | $295,457 | 3.92 % | 9.6 % | Average Interest-Bearing Liabilities and Rates (3Q25 vs 3Q24) | Metric | 3Q24 Average Balance (millions) | 3Q24 Average Rate | 3Q25 Average Balance (millions) | 3Q25 Average Rate | % Change 3Q25 vs 3Q24 Balance | | :------------------------------------ | :------------------------------ | :---------------- | :------------------------------ | :---------------- | :---------------------------- | | Total interest-bearing deposits | $201,264 | 3.35 % | $230,560 | 2.86 % | 14.6 % | | Securities sold under repurchase agreements | $2,193 | 4.98 % | $1,002 | 3.44 % | (54.3) % | | Long-term debt | $20,258 | 5.27 % | $25,273 | 4.93 % | 24.8 % | | Total interest-bearing liabilities | $242,592 | 3.87 % | $270,349 | 3.23 % | 11.4 % | Net Interest Margin (3Q25 vs 3Q24) | Metric | 3Q24 | 3Q25 | | :---------------------------------- | :----- | :----- | | Net interest margin, fully taxable-equivalent basis | 1.13 % | 0.96 % | | Net interest income, GAAP-basis (millions) | $723 | $715 | [Average Statement of Condition - Rates Earned and Paid - Fully Taxable-Equivalent Basis - Year-to-Date](index=7&type=section&id=Average%20Statement%20of%20Condition%20-%20Rates%20Earned%20and%20Paid%20-%20Fully%20Taxable-Equivalent%20Basis%20-%20Year-to-Date) This section provides a year-to-date comparison of average interest-earning assets and interest-bearing liabilities, along with their average rates earned and paid on a fully taxable-equivalent basis. For YTD2025, total interest-earning assets increased by 13.2% compared to YTD2024, while the net interest margin decreased to 0.97% from 1.11% YTD Average Interest-Earning Assets and Rates (2025 vs 2024) | Metric | YTD2024 Average Balance (millions) | YTD2024 Average Rate | YTD2025 Average Balance (millions) | YTD2025 Average Rate | % Change YTD2025 vs YTD2024 Balance | | :------------------------------------ | :------------------------------- | :------------------- | :------------------------------- | :------------------- | :-------------------------------- | | Interest-bearing deposits with banks, net | $88,330 | 4.24 % | $93,060 | 3.21 % | 5.4 % | | Total investment securities | $104,603 | 3.59 % | $111,332 | 3.54 % | 6.4 % | | Loans | $38,747 | 5.82 % | $45,179 | 5.07 % | 16.6 % | | Total interest-earning assets | $261,887 | 4.58 % | $296,562 | 4.01 % | 13.2 % | YTD Average Interest-Bearing Liabilities and Rates (2025 vs 2024) | Metric | YTD2024 Average Balance (millions) | YTD2024 Average Rate | YTD2025 Average Balance (millions) | YTD2025 Average Rate | % Change YTD2025 vs YTD2024 Balance | | :------------------------------------ | :------------------------------- | :------------------- | :------------------------------- | :------------------- | :-------------------------------- | | Total interest-bearing deposits | $196,393 | 3.39 % | $228,471 | 2.88 % | 16.3 % | | Securities sold under repurchase agreements | $2,904 | 5.05 % | $2,884 | 4.37 % | (0.7) % | | Long-term debt | $19,634 | 5.38 % | $24,965 | 4.97 % | 27.2 % | | Total interest-bearing liabilities | $235,422 | 3.85 % | $271,159 | 3.32 % | 15.2 % | YTD Net Interest Margin (2025 vs 2024) | Metric | YTD2024 | YTD2025 | | :---------------------------------- | :------ | :------ | | Net interest margin, fully taxable-equivalent basis | 1.11 % | 0.97 % | | Net interest income, GAAP-basis (millions) | $2,174 | $2,158 | [Selected Average Balances by Currency - Rates Earned and Paid](index=8&type=section&id=Selected%20Average%20Balances%20by%20Currency%20-%20Rates%20Earned%20and%20Paid) USD-denominated assets and deposits represent the largest portion, with varying rates across currencies reflecting different central bank policies Total Interest-Earning Assets by Currency (3Q25) | Currency | Average Balance (millions) | Average Rates | | :------- | :------------------------- | :------------ | | USD | $210,414 | 4.42 % | | EUR | $43,782 | 2.37 % | | GBP | $13,956 | 4.39 % | | Other | $27,305 | 2.26 % | | Total | $295,457 | 3.92 % | Total Interest-Bearing Deposits by Currency (3Q25) | Currency | Average Balance (millions) | Average Rates | | :------- | :------------------------- | :------------ | | USD | $156,248 | 3.72 % | | EUR | $37,952 | 1.16 % | | GBP | $11,715 | 1.88 % | | Other | $24,645 | 0.47 % | | Total | $230,560 | 2.86 % | [Investment Portfolio Holdings by Asset Class](index=9&type=section&id=Investment%20Portfolio%20Holdings%20by%20Asset%20Class) The investment portfolio holdings are detailed by asset class for both available-for-sale (AFS) and held-to-maturity (HTM) securities. As of 3Q25, the total investment securities portfolio averaged $111.8 billion, with AFS securities showing a net unrealized pre-tax gain of $142 million, while HTM securities had a significant net unrealized pre-tax loss of $4,281 million Available-for-Sale Investment Securities (3Q25 Average) | Asset Class | Average Balance (billions) | Average Rate | | :------------------------------------ | :------------------------- | :----------- | | Government & agency securities | $42.8 | 4.08 % | | U.S. Treasury direct obligations | $25.5 | 4.37 % | | Non-U.S. sovereign, supranational and non-U.S. agency | $17.3 | 3.66 % | | Asset-backed securities | $8.7 | 4.58 % | | Mortgage-backed securities | $11.3 | 5.33 % | | CMBS | $3.9 | 4.80 % | | Other | $3.2 | 5.12 % | | Total available-for-sale portfolio | $69.9 | 4.43 % | Held-to-Maturity Investment Securities (3Q25 Average) | Asset Class | Average Balance (billions) | Average Rate | | :------------------------------------ | :------------------------- | :----------- | | Government & agency securities | $5.6 | 0.83 % | | U.S. Treasury direct obligations | $2.4 | 0.67 % | | Non-U.S. sovereign, supranational and non-U.S. agency | $3.2 | 0.95 % | | Asset-backed securities | $2.4 | 5.21 % | | Mortgage-backed securities | $28.8 | 2.20 % | | CMBS | $5.1 | 1.89 % | | Total held-for-maturity portfolio | $41.9 | 2.15 % | - As of September 30, 2025, the available-for-sale investment portfolio had a net unrealized pre-tax mark-to-market (MTM) gain of **$142 million**, while the held-to-maturity portfolio had a net unrealized pre-tax MTM loss of **$4,281 million**. Approximately **86%** of the investment portfolio was held in High-Quality Liquid Assets (HQLA)[24](index=24&type=chunk) [Allowance for Credit Losses](index=11&type=section&id=Allowance%20for%20Credit%20Losses) The allowance for credit losses increased by 17.5% year-over-year to $201 million as of 3Q25. The total provision for credit losses in 3Q25 was $9 million, a significant decrease of 65.4% compared to 3Q24, primarily due to lower provisions for funded commitments Allowance for Credit Losses (3Q25 vs 3Q24) | Metric | 3Q24 (millions) | 2Q25 (millions) | 3Q25 (millions) | % Change 3Q25 vs 3Q24 | % Change 3Q25 vs 2Q25 | | :------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------------- | :-------------------- | | Beginning balance | $145 | $186 | $192 | 32.4 % | 3.2 % | | Total provision for credit losses | $26 | $30 | $9 | (65.4) % | (70.0) % | | Charge-offs | $0 | ($24) | $0 | — | nm | | Ending balance | $171 | $192 | $201 | 17.5 % | 4.7 % | Allowance for Credit Losses by Category (3Q25 vs 3Q24) | Category | 3Q24 (millions) | 2Q25 (millions) | 3Q25 (millions) | % Change 3Q25 vs 3Q24 | % Change 3Q25 vs 2Q25 | | :------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------------- | :-------------------- | | Loans | $162 | $179 | $190 | 17.3 % | 6.1 % | | Unfunded (off-balance sheet) commitments | $8 | $11 | $10 | 25.0 % | (9.1) % | | Total ending balance | $171 | $192 | $201 | 17.5 % | 4.7 % | [Assets Under Custody and/or Administration](index=12&type=section&id=Assets%20Under%20Custody%20and%2For%20Administration) Assets Under Custody and/or Administration (AUC/A) increased by 10.5% year-over-year to $51.664 trillion as of 3Q25. This growth was broad-based across product classifications, asset classes, and geographic locations, with equities showing the strongest growth among asset classes Total Assets Under Custody and/or Administration (3Q25 vs 3Q24) | Metric | 3Q24 (billions) | 2Q25 (billions) | 3Q25 (billions) | % Change 3Q25 vs 3Q24 | % Change 3Q25 vs 2Q25 | | :------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------------- | :-------------------- | | Total AUC/A | $46,759 | $49,000 | $51,664 | 10.5 % | 5.4 % | | Equities (by Asset Class) | $27,715 | $29,311 | $31,124 | 12.3 % | 6.2 % | | Americas (by Geographic Location) | $33,460 | $35,028 | $36,698 | 9.7 % | 4.8 % | | Europe/Middle East/Africa (by Geographic Location) | $10,214 | $10,803 | $11,570 | 13.3 % | 7.1 % | | Asia/Pacific (by Geographic Location) | $3,085 | $3,169 | $3,396 | 10.1 % | 7.2 % | Total Assets Under Custody (3Q25 vs 3Q24) | Metric | 3Q24 (billions) | 2Q25 (billions) | 3Q25 (billions) | % Change 3Q25 vs 3Q24 | % Change 3Q25 vs 2Q25 | | :------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------------- | :-------------------- | | Total AUC | $33,667 | $35,548 | $37,499 | 11.4 % | 5.5 % | | Collective funds, including ETFs (by Product) | $13,122 | $14,487 | $15,478 | 18.0 % | 6.8 % | | Americas (by Geographic Location) | $25,386 | $26,705 | $28,058 | 10.5 % | 5.1 % | [Assets Under Management](index=13&type=section&id=Assets%20Under%20Management) Assets Under Management (AUM) increased by 15.1% year-over-year to $5.446 trillion as of 3Q25, driven by strong growth in both active and passive equity strategies, as well as multi-asset-class solutions. Exchange-Traded Funds (ETFs) also saw significant growth, increasing by 21.9% year-over-year Total Assets Under Management (3Q25 vs 3Q24) | Metric | 3Q24 (billions) | 2Q25 (billions) | 3Q25 (billions) | % Change 3Q25 vs 3Q24 | % Change 3Q25 vs 2Q25 | | :------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------------- | :-------------------- | | Total AUM | $4,732 | $5,117 | $5,446 | 15.1 % | 6.4 % | | Total Equity | $2,977 | $3,218 | $3,465 | 16.4 % | 7.7 % | | Total Fixed-Income | $623 | $700 | $720 | 15.6 % | 2.9 % | | Total Multi-Asset-Class Solutions | $375 | $449 | $477 | 27.2 % | 6.2 % | | Americas (by Geographic Location) | $3,448 | $3,713 | $3,982 | 15.5 % | 7.2 % | | Europe/Middle East/Africa (by Geographic Location) | $728 | $771 | $806 | 10.7 % | 4.5 % | | Asia-Pacific (by Geographic Location) | $556 | $633 | $658 | 18.3 % | 3.9 % | Exchange-Traded Funds (3Q25 vs 3Q24) | Metric | 3Q24 (billions) | 2Q25 (billions) | 3Q25 (billions) | % Change 3Q25 vs 3Q24 | % Change 3Q25 vs 2Q25 | | :------------------------------------ | :-------------- | :-------------- | :-------------- | :-------------------- | :-------------------- | | Total Exchange-Traded Funds | $1,516 | $1,690 | $1,848 | 21.9 % | 9.3 % | | Alternative Investments | $91 | $124 | $154 | 69.2 % | 24.2 % | | Equity | $1,253 | $1,374 | $1,500 | 19.7 % | 9.2 % | | Fixed-Income | $171 | $191 | $193 | 12.9 % | 1.0 % | [Line of Business Information](index=14&type=section&id=Line%20of%20Business%20Information) This section provides a breakdown of financial performance by line of business, showing that Investment Servicing and Investment Management are the primary revenue drivers. For 3Q25, Investment Servicing revenue increased by 7.5% year-over-year, while Investment Management revenue grew by 14.6%. Both segments demonstrated improved pre-tax margins Total Revenue by Line of Business (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Line of Business | 3Q24 (millions) | 3Q25 (millions) | % Change 3Q25 vs 3Q24 | YTD2024 (millions) | YTD2025 (millions) | % Change YTD2025 vs YTD2024 | | :----------------------- | :-------------- | :-------------- | :-------------------- | :----------------- | :----------------- | :-------------------------- | | Investment Servicing | $2,662 | $2,861 | 7.5 % | $7,873 | $8,393 | 6.6 % | | Investment Management | $597 | $684 | 14.6 % | $1,715 | $1,905 | 11.1 % | | Other | $0 | $0 | — | $0 | ($21) | nm | | Total Revenue | $3,259 | $3,545 | 8.8 % | $9,588 | $10,277 | 7.2 % | Income Before Income Tax Expense by Line of Business (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Line of Business | 3Q24 (millions) | 3Q25 (millions) | % Change 3Q25 vs 3Q24 | YTD2024 (millions) | YTD2025 (millions) | % Change YTD2025 vs YTD2024 | | :----------------------- | :-------------- | :-------------- | :-------------------- | :----------------- | :----------------- | :-------------------------- | | Investment Servicing | $745 | $858 | 15.2 % | $2,076 | $2,334 | 12.4 % | | Investment Management | $180 | $244 | 35.6 % | $490 | $617 | 25.9 % | | Other | $0 | $0 | — | ($131) | ($138) | 5.3 % | | Total Income before income tax expense | $925 | $1,102 | 19.1 % | $2,435 | $2,813 | 15.5 % | Pre-tax Margin by Line of Business (3Q25 & YTD2025) | Line of Business | 3Q24 | 2Q25 | 3Q25 | YTD2024 | YTD2025 | | :----------------------- | :--- | :--- | :--- | :------ | :------ | | Investment Servicing | 28.0 % | 28.8 % | 30.0 % | 26.4 % | 27.8 % | | Investment Management | 30.2 % | 33.3 % | 35.7 % | 28.6 % | 32.4 % | | Total Pre-tax Margin | 28.4 % | 25.8 % | 31.1 % | 25.4 % | 27.4 % | Capital [Regulatory Capital](index=15&type=section&id=Regulatory%20Capital) This section outlines State Street's regulatory capital ratios under both Basel III Advanced Approaches and Standardized Approach. As of 3Q25, the Common Equity Tier 1 (CET1) ratio under the Standardized Approach was 11.3%, showing a slight decrease from 3Q24, while the Tier 1 Leverage Ratio improved to 5.6% Regulatory Capital Ratios (3Q25 vs 3Q24) | Metric | 3Q24 (Advanced) | 3Q25 (Advanced) | 3Q24 (Standardized) | 3Q25 (Standardized) | | :------------------------------------ | :-------------- | :-------------- | :------------------ | :------------------ | | Common equity tier 1 risk based capital ratio | 12.5 % | 13.1 % | 11.6 % | 11.3 % | | Tier 1 risk-based capital ratio | 15.0 % | 16.2 % | 13.9 % | 13.9 % | | Total risk-based capital ratio | 16.6 % | 17.8 % | 15.6 % | 15.5 % | | Tier 1 leverage ratio | 5.5 % | 5.6 % | 5.5 % | 5.6 % | | Supplementary leverage ratio | 6.4 % | 6.4 % | 6.4 % | 6.4 % | - The capital ratios as of September 30, 2025, are estimates. State Street is subject to a minimum Supplementary Leverage Ratio (SLR) of **3%**, and as a U.S. G-SIB, must maintain a **2%** SLR buffer[38](index=38&type=chunk) [Reconciliations of Tangible Book Value per Share and Return on Tangible Common Equity](index=16&type=section&id=Reconciliations%20of%20Tangible%20Book%20Value%20per%20Share%20and%20Return%20on%20Tangible%20Common%20Equity) This section provides reconciliations of GAAP common equity to non-GAAP tangible common equity, used to calculate tangible book value per common share (TBVPS) and return on average tangible common equity (ROTCE). As of 3Q25, TBVPS increased to $55.57, and ROTCE improved to 20.9% year-over-year Tangible Book Value per Common Share (3Q25 vs 3Q24) | Metric | 3Q24 | 2Q25 | 3Q25 | | :------------------------------------ | :----- | :----- | :----- | | Total common shares outstanding (thousands) | 294,191 | 285,562 | 282,218 | | Book value per common share | $78.22 | $83.16 | $85.33 | | Tangible book value per common share - Non-GAAP | $49.22 | $53.56 | $55.57 | Return on Average Tangible Common Equity (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 | 2Q25 | 3Q25 | YTD2024 | YTD2025 | | :------------------------------------ | :----- | :----- | :----- | :------ | :------ | | Average tangible common shareholders' equity - Non-GAAP (millions) | $14,170 | $15,085 | $15,360 | $13,718 | $14,994 | | Net income available to common shareholders (millions) | $682 | $630 | $802 | $1,755 | $2,029 | | Return on average tangible common equity - Non-GAAP | 19.3 % | 16.7 % | 20.9 % | 17.1 % | 18.0 % | Non-GAAP Financial Information [Reconciliations of Non-GAAP Financial Information](index=17&type=section&id=Reconciliations%20of%20Non-GAAP%20Financial%20Information) This section provides detailed reconciliations of GAAP financial measures to non-GAAP measures by excluding notable items such as acquisition and restructuring charges, repositioning charges, and other non-recurring items. These adjustments aim to provide a clearer view of the company's underlying operational performance and trends - Non-GAAP financial results adjust selected GAAP-basis financial results to exclude the impact of revenue and expenses outside of State Street's normal course of business or other notable items, such as acquisition and restructuring charges, repositioning charges, gains/losses on sales, and seasonal items. This presentation facilitates understanding and analysis of financial performance and trends[45](index=45&type=chunk) Total Revenue (GAAP vs. Non-GAAP excluding notable items) (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 (millions) | 3Q25 (millions) | % Change 3Q25 vs 3Q24 | YTD2024 (millions) | YTD2025 (millions) | % Change YTD2025 vs YTD2024 | | :------------------------------------ | :-------------- | :-------------- | :-------------------- | :----------------- | :----------------- | :-------------------------- | | Total revenue, GAAP-basis | $3,259 | $3,545 | 8.8 % | $9,588 | $10,277 | 7.2 % | | Total revenue, excluding notable items | $3,259 | $3,545 | 8.8 % | $9,588 | $10,298 | 7.4 % | Total Expenses (GAAP vs. Non-GAAP excluding notable items) (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 (millions) | 3Q25 (millions) | % Change 3Q25 vs 3Q24 | YTD2024 (millions) | YTD2025 (millions) | % Change YTD2025 vs YTD2024 | | :------------------------------------ | :-------------- | :-------------- | :-------------------- | :----------------- | :----------------- | :-------------------------- | | Total expenses, GAAP-basis | $2,308 | $2,434 | 5.5 % | $7,090 | $7,413 | 4.6 % | | Total expenses, excluding notable items | $2,308 | $2,434 | 5.5 % | $6,960 | $7,296 | 4.8 % | Diluted Earnings per Share (GAAP vs. Non-GAAP excluding notable items) (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 | 3Q25 | % Change 3Q25 vs 3Q24 | YTD2024 | YTD2025 | % Change YTD2025 vs YTD2024 | | :------------------------------------ | :----- | :----- | :-------------------- | :------ | :------ | :-------------------------- | | Diluted earnings per share, GAAP-basis | $2.26 | $2.78 | 23.0 % | $5.77 | $6.98 | 21.0 % | | Diluted earnings per share, excluding notable items | $2.26 | $2.78 | 23.0 % | $6.09 | $7.34 | 20.5 % | Pre-tax Margin (GAAP vs. Non-GAAP excluding notable items) (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 | 3Q25 | % Change 3Q25 vs 3Q24 | YTD2024 | YTD2025 | % Change YTD2025 vs YTD2024 | | :------------------------------------ | :----- | :----- | :-------------------- | :------ | :------ | :-------------------------- | | Pre-tax margin, GAAP-basis | 28.4 % | 31.1 % | 2.7 % pts | 25.4 % | 27.4 % | 2.0 % pts | | Pre-tax margin, excluding notable items | 28.4 % | 31.1 % | 2.7 % pts | 26.8 % | 28.7 % | 1.9 % pts | [Reconciliation of Pre-tax Margin Excluding Notable Items](index=21&type=section&id=Reconciliation%20of%20Pre-tax%20Margin%20Excluding%20Notable%20Items) This section provides an annual reconciliation of GAAP pre-tax margin to pre-tax margin excluding notable items for the years 2021 through 2024. The non-GAAP pre-tax margin consistently shows a higher or more stable performance compared to the GAAP basis, reflecting the impact of various non-recurring charges Pre-tax Margin (GAAP vs. Non-GAAP excluding notable items) (2021-2024) | Metric | 2021 | 2022 | 2023 | 2024 | | :------------------------------------ | :----- | :----- | :----- | :----- | | Pre-tax margin, excluding notable items | 27.6 % | 28.4 % | 26.4 % | 27.6 % | | Pre-tax margin, GAAP-basis | 26.4 % | 27.4 % | 19.4 % | 26.1 % | [Reconciliations of Constant Currency FX Impacts](index=22&type=section&id=Reconciliations%20of%20Constant%20Currency%20FX%20Impacts) This section analyzes the impact of currency translation on quarterly and year-to-date GAAP results, presenting financial figures both as reported and adjusted to exclude currency fluctuations. For 3Q25, total revenue growth was 7.9% as reported, but 7.5% excluding currency impact, indicating a positive foreign exchange effect Total Fee Revenue (Reported vs. Excluding Currency Impact) (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 Reported (millions) | 3Q25 Reported (millions) | 3Q25 Excluding Currency Impact (millions) | % Change 3Q25 vs 3Q24 Excluding Currency | | :------------------------------------ | :----------------------- | :----------------------- | :---------------------------------------- | :--------------------------------------- | | Total fee revenue | $2,616 | $2,829 | $2,811 | 7.5 % | | YTD Total fee revenue | $7,494 | $8,118 | $8,094 | 8.0 % | Total Revenue (Reported vs. Excluding Currency Impact) (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 Reported (millions) | 3Q25 Reported (millions) | 3Q25 Excluding Currency Impact (millions) | % Change 3Q25 vs 3Q24 Excluding Currency | | :------------------------------------ | :----------------------- | :----------------------- | :---------------------------------------- | :--------------------------------------- | | Total revenue | $3,259 | $3,545 | $3,515 | 7.9 % | | YTD Total revenue | $9,588 | $10,277 | $10,240 | 6.8 % | Total Expenses (Reported vs. Excluding Currency Impact) (3Q25 vs 3Q24 & YTD2025 vs YTD2024) | Metric | 3Q24 Reported (millions) | 3Q25 Reported (millions) | 3Q25 Excluding Currency Impact (millions) | % Change 3Q25 vs 3Q24 Excluding Currency | | :------------------------------------ | :----------------------- | :----------------------- | :---------------------------------------- | :--------------------------------------- | | Total expenses | $2,308 | $2,434 | $2,413 | 4.5 % | | YTD Total expenses | $7,090 | $7,413 | $7,385 | 4.2 % |

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Third-Quarter 2025 Financial Highlights](index=1&type=section&id=Third-Quarter%202025%20Financial%20Highlights) SLB's Q3 2025 revenue increased sequentially but declined year-on-year, with GAAP EPS and Net Income down, and Adjusted EBITDA flat sequentially but lower year-on-year, impacted by ChampionX Financial Highlights (Million USD) | Metric | Sept. 30, 2025 (Million USD) | Jun. 30, 2025 (Million USD) | Sept. 30, 2024 (Million USD) | Sequential Change (%) | Year-on-year Change (%) | | :-------------------------------- | :------------- | :------------ | :------------- | :---------------- | :------------------ | | Revenue | $8,928M | $8,546M | $9,159M | **4%** | **-3%** | | Income before taxes - GAAP | $1,000M | $1,285M | $1,507M | **-22%** | **-34%** | | Net income attributable to SLB - GAAP | $739M | $1,014M | $1,186M | **-27%** | **-38%** | | Diluted EPS - GAAP | **$0.50** | **$0.74** | **$0.83** | **-32%** | **-40%** | | Adjusted EBITDA* | $2,061M | $2,051M | $2,343M | **0%** | **-12%** | | Cash flow from operations | $1,680M | N/A | N/A | N/A | N/A | | Free cash flow | $1,100M | N/A | N/A | N/A | N/A | | Quarterly cash dividend | **$0.285 per share** | N/A | N/A | N/A | N/A | [ChampionX Acquisition Impact](index=1&type=section&id=ChampionX%20Acquisition%20Impact) ChampionX added **$579 million** revenue to Q3 2025; excluding it, global revenue declined **2%** sequentially and **9%** year-on-year - **ChampionX acquisition** contributed **$579 million** of **revenue**, **$139 million** of **adjusted EBITDA**, and **$108 million** of **pretax segment operating income** to **Q3 2025** results[3](index=3&type=chunk) - Excluding **ChampionX**, **SLB's Q3 2025** global **revenue decreased 2%** sequentially and **9%** year-on-year[3](index=3&type=chunk) [Management Commentary & Strategic Outlook](index=2&type=section&id=Management%20Commentary%20%26%20Strategic%20Outlook) [Resilience Amidst Evolving Market Dynamics](index=2&type=section&id=Resilience%20Amidst%20Evolving%20Market%20Dynamics) **SLB's** **CEO** noted **Q3** **revenue increased sequentially**, supported by **ChampionX acquisition** and **Digital growth**, despite market challenges, with **International markets** showing **resilience** - **Q3 revenue increased sequentially**, supported by **ChampionX**, **Digital growth**, and **resilient Core business** performance, despite challenging market conditions[7](index=7&type=chunk) - **International markets** are demonstrating **resilience**, with **robust growth** in several **Middle East & Asia** countries, and **OPEC+** production releases expected to support future investment[8](index=8&type=chunk) [Production and Recovery Business Alignment](index=3&type=section&id=Production%20and%20Recovery%20Business%20Alignment) Customers prioritize **production and recovery solutions** for lower-cost decline offset, which **SLB** addresses by leveraging expertise, technology, and **ChampionX acquisition** to expand its presence in this less cyclical market - Customers are prioritizing **production and recovery solutions** to unlock incremental barrels at the lowest possible cost[9](index=9&type=chunk) - **SLB** is leveraging subsurface expertise, production technology, portfolio integration, and digital/AI capabilities to support customers in **production and recovery**[10](index=10&type=chunk) - **ChampionX acquisition** enhances **SLB's** portfolio and expands its presence in the less cyclical production market[11](index=11&type=chunk) [Digital Delivering Differentiated Growth and Margins](index=3&type=section&id=Digital%20Delivering%20Differentiated%20Growth%20and%20Margins) **Digital** is **SLB's fastest-growing business**, transforming the oil and gas industry through AI and data, now reported as a standalone division highlighting its high-margin growth and industry leadership - **Digital** is **SLB's fastest-growing business**, leveraging software, AI, data analytics, automation, and IoT for efficiency, safety, and sustainability[12](index=12&type=chunk)[13](index=13&type=chunk) - **SLB** is reporting **Digital** as a standalone division, emphasizing its high-margin growth and differentiation[14](index=14&type=chunk) [International Markets to Lead Future Activity Rebound](index=3&type=section&id=International%20Markets%20to%20Lead%20Future%20Activity%20Rebound) **SLB** anticipates **International markets** will drive future activity rebound as supply and demand rebalance, supported by sustained investment in oil capacity, gas expansion, and deepwater projects, leading **Q4** **revenue growth** - **International markets** are expected to lead an activity rebound, supported by sustained investment in oil capacity, gas expansion, and deepwater[15](index=15&type=chunk) - **SLB** forecasts **Q4 revenue growth** driven by **International markets**, **Digital**, and a full quarter of **ChampionX** operations[16](index=16&type=chunk) [Key Events & Corporate Actions](index=4&type=section&id=Key%20Events%20%26%20Corporate%20Actions) [Share Repurchase Program](index=4&type=section&id=Share%20Repurchase%20Program) During **Q3 2025**, **SLB** repurchased **3.2 million shares** for **$114 million**, bringing total repurchases for the first nine months of **2025** to **60.0 million shares** for **$2.41 billion** - **Q3 2025**: Repurchased **3.2 million shares** for **$114 million**[17](index=17&type=chunk) - **First nine months of 2025**: Repurchased **60.0 million shares** for **$2.41 billion**[17](index=17&type=chunk) [ChampionX Acquisition Completion](index=4&type=section&id=ChampionX%20Acquisition%20Completion) **SLB** completed the **ChampionX acquisition** on **July 16, 2025**, enhancing its portfolio, technology, and digital leadership, and increasing exposure to the **production and recovery market** - **Acquisition of ChampionX** completed on **July 16, 2025**[18](index=18&type=chunk) - The **acquisition** is expected to **increase SLB's** exposure to the **production and recovery market** and deliver best-in-class workflow integration[18](index=18&type=chunk) [Quarterly Cash Dividend](index=4&type=section&id=Quarterly%20Cash%20Dividend) **SLB's** Board of Directors approved a quarterly cash dividend of **$0.285 per share**, payable on **January 8, 2026**, to stockholders of record on **December 3, 2025** - Board approved a quarterly cash dividend of **$0.285 per share**[19](index=19&type=chunk) [Financial Performance by Geography](index=5&type=section&id=Financial%20Performance%20by%20Geography) [Overall Geographical Revenue](index=5&type=section&id=Overall%20Geographical%20Revenue) **SLB's Q3 2025** revenue of **$8.93 billion** increased **4%** sequentially, driven by **1%** international and **17%** **North America** growth, including **$579 million** from **ChampionX**, but excluding it, international revenue declined **1%** and **North America** revenue declined **7%** sequentially Overall Geographical Revenue (Million USD) | Geography | Sept. 30, 2025 (Million USD) | Jun. 30, 2025 (Million USD) | Sept. 30, 2024 (Million USD) | Sequential Change (%) | Year-on-year Change (%) | | :---------------- | :------------- | :------------ | :------------- | :---------------- | :------------------ | | North America | $1,930M | $1,655M | $1,687M | **17%** | **14%** | | Latin America | $1,482M | $1,492M | $1,689M | **-1%** | **-12%** | | Europe & Africa | $2,434M | $2,369M | $2,434M | **3%** | **0%** | | Middle East & Asia | $3,000M | $2,986M | $3,302M | **0%** | **-9%** | | International Total | $6,916M | $6,847M | $7,425M | **1%** | **-7%** | | North America Total | $1,930M | $1,655M | $1,687M | **17%** | **14%** | | Total Revenue | $8,928M | $8,546M | $9,159M | **4%** | **-3%** | - **ChampionX** contributed **$579 million** to **Q3 2025** **revenue** (**$387 million** in **North America**, **$171 million** in **International markets**)[20](index=20&type=chunk) - Excluding **ChampionX**, **International revenue declined 1%** sequentially and **North America revenue declined 7%** sequentially[20](index=20&

General Notes and Definitions [GAAP and Non-GAAP Financial Measures](index=2&type=section&id=GAAP%20and%20Non-GAAP%20Financial%20Measures) Financial statements are prepared in conformity with GAAP, requiring management estimates, and include non-GAAP measures with GAAP reconciliations for operational understanding - Financial statement data is prepared in conformity with GAAP, requiring management estimates and assumptions[4](index=4&type=chunk) - Non-GAAP financial measures are included to aid in understanding results, with comparable GAAP reconciliations provided[5](index=5&type=chunk) [Fully-Taxable Equivalent (FTE) Basis](index=2&type=section&id=Fully-Taxable%20Equivalent%20(FTE)%20Basis) Interest income, yields, and ratios are presented on a Fully-Taxable Equivalent (FTE) basis, a non-GAAP measure used by management for accurate comparison of interest margin and revenue comparability from taxable and tax-exempt sources, assuming a 21% federal statutory tax rate - Interest income, yields, and ratios on an FTE basis are non-GAAP financial measures[6](index=6&type=chunk) - The FTE basis provides a more accurate picture of interest margin for comparison and assesses comparability of revenue from taxable and tax-exempt sources, assuming a **21% federal statutory tax rate**[6](index=6&type=chunk) [Non-Regulatory Capital Ratios](index=2&type=section&id=Non-Regulatory%20Capital%20Ratios) The Company uses non-regulatory capital ratios like Tangible Common Equity to Tangible Assets, Tangible Common Equity to Risk-Weighted Assets, and Adjusted Common Equity Tier 1 (CET1) to evaluate capital utilization and adequacy, differing from regulatory ratios by excluding preferred securities and including AOCI for Adjusted CET1 - Non-regulatory capital ratios, including **Tangible Common Equity to Tangible Assets**, **Tangible Common Equity to Risk-Weighted Assets**, and **Adjusted CET1**, are used to evaluate capital utilization and adequacy[7](index=7&type=chunk)[9](index=9&type=chunk) - These ratios are non-GAAP and differ from regulatory capital ratios primarily by excluding preferred securities and, for Adjusted CET1, including the impact of AOCI (excluding cash flow hedges)[7](index=7&type=chunk) - The Company encourages readers to consider consolidated financial statements in their entirety due to potential differences in calculation methods for these non-regulatory ratios among financial services companies[8](index=8&type=chunk) Quarterly Financial Overview [Quarterly Key Statistics](index=3&type=section&id=Quarterly%20Key%20Statistics) Huntington Bancshares reported strong Q3 2025 performance with significant increases in net income and diluted EPS compared to both the previous quarter and prior year, alongside robust growth in Net Interest Income, Noninterest Income, and Income before income taxes, while credit quality metrics remained stable or improved Key Quarterly Financial Highlights (Q3 2025 vs. Q2 2025 and Q3 2024) | Metric (in millions, except per share) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change vs. 2Q25 | % Change vs. 3Q24 | | :------------------------------------- | :----------- | :----------- | :----------- | :----------------- | :----------------- | | Net interest income (FTE) | $1,523 | $1,483 | $1,364 | 3 % | 12 % | | Provision for credit losses | $122 | $103 | $106 | 18 % | 15 % | | Noninterest income | $628 | $471 | $523 | 33 % | 20 % | | Noninterest expense | $1,246 | $1,197 | $1,130 | 4 % | 10 % | | Income before income taxes | $766 | $638 | $638 | 20 % | 20 % | | Net income applicable to common shares | $602 | $509 | $481 | 18 % | 25 % | | Net income per common share - diluted | $0.41 | $0.34 | $0.33 | 21 % | 24 % | | Return on average assets | 1.19 % | 1.04 % | 1.04 % | | | | Net interest margin | 3.13 % | 3.11 % | 2.98 % | | | | Efficiency ratio | 57.4 % | 59.0 % | 59.4 % | | | | Average total assets | $209,727 | $207,852 | $198,278 | 1 % | 6 % | | Average loans and leases | $135,944 | $133,171 | $124,507 | 2 % | 9 % | | Average total deposits | $164,812 | $163,429 | $156,488 | 1 % | 5 % | | NCOs as a % of average loans and leases| 0.22 % | 0.20 % | 0.30 % | | | | NAL ratio | 0.59 % | 0.62 % | 0.58 % | | | | Common equity tier 1 risk-based capital ratio | 10.6 % | 10.5 % | 10.4 % | | | [Notes to Quarterly and Year-to-Date Key Statistics](index=5&type=section&id=Notes%20to%20Quarterly%20and%20Year-to-Date%20Key%20Statistics) This section defines and details methodologies for key financial metrics, including Fully-Taxable Equivalent (FTE) basis, Return on Average Tangible Common Shareholders' Equity, Efficiency Ratio, Nonperforming Assets (NPAs), Common Equity Tier 1 (CET1) risk-based capital ratio, and Tangible Common Equity to Tangible Asset ratio - FTE basis assumes a **21% tax rate** for calculations[15](index=15&type=chunk) - Return on average tangible common shareholders' equity is calculated by adjusting net income for amortization of intangibles and dividing by average tangible common shareholders' equity[15](index=15&type=chunk) - The efficiency ratio is defined as noninterest expense (less amortization of intangibles) divided by the sum of FTE net interest income and noninterest income (excluding securities gains/losses)[15](index=15&type=chunk) [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2025, total assets increased by **3% to $210,228 million** compared to December 31, 2024, driven by a **6% increase in net loans and leases** and a **37% increase in preferred stock**, with deposits also growing by **2%** Consolidated Balance Sheet Highlights (Sep 30, 2025 vs. Dec 31, 2024) | Metric (in millions) | Sep 30, 2025 | Dec 31, 2024 | % Change | | :------------------- | :----------- | :----------- | :------- | | Total assets | $210,228 | $204,230 | 3 % | | Net loans and leases | $135,582 | $127,798 | 6 % | | Total liabilities | $187,942 | $184,448 | 2 % | | Deposits | $165,212 | $162,448 | 2 % | | Preferred stock | $2,731 | $1,989 | 37 % | | Total Huntington shareholders' equity | $22,248 | $19,740 | 13 % | [Loans and Leases Composition](index=7&type=section&id=Loans%20and%20Leases%20Composition) Total loans and leases increased to **$137,956 million** as of September 30, 2025, up from **$130,042 million** at December 31, 2024, with commercial loans, particularly Commercial and Industrial, remaining the largest segment, and automobile loans showing notable growth Ending Balances by Loan Type (Sep 30, 2025 vs. Dec 31, 2024) | Loan Type (in millions) | Sep 30, 2025 | Dec 31, 2024 | % of Total (Sep 30, 2025) | | :---------------------- | :----------- | :----------- | :------------------------ | | Commercial and industrial | $62,978 | $56,809 | 45 % | | Commercial real estate | $10,732 | $11,078 | 8 % | | Lease financing | $5,515 | $5,454 | 4 % | | Total commercial | $79,225 | $73,341 | 57 % | | Residential mortgage | $24,502 | $24,242 | 18 % | | Automobile | $15,996 | $14,564 | 12 % | | Home equity | $10,314 | $10,142 | 7 % | | RV and marine | $5,805 | $5,982 | 4 % | | Other consumer | $2,114 | $1,771 | 2 % | | **Total loans and leases**| **$137,956** | **$130,042** | **100 %** | - Commercial Banking segment loans increased from **$57,858 million to $62,755 million (8.5% growth)** from Dec 31, 2024, to Sep 30, 2025[17](index=17&type=chunk) - Consumer & Regional Banking segment loans increased from **$72,051 million to $75,027 million (4.1% growth)** from Dec 31, 2024, to Sep 30, 2025[17](index=17&type=chunk) [Deposits Composition](index=8&type=section&id=Deposits%20Composition) Total deposits increased to **$165,212 million** as of September 30, 2025, up from **$162,448 million** at December 31, 2024, with money market deposits growing as the largest category, while time deposits decreased, and Commercial Banking deposits experienced significant growth Ending Balances by Deposit Type (Sep 30, 2025 vs. Dec 31, 2024) | Deposit Type (in millions) | Sep 30, 2025 | Dec 31, 2024 | % of Total (Sep 30, 2025) | | :------------------------- | :----------- | :----------- | :------------------------ | | Demand deposits - noninterest bearing | $28,596 | $29,345 | 17 % | | Demand deposits - interest bearing | $46,056 | $43,378 | 28 % | | Money market deposits | $62,837 | $60,730 | 38 % | | Savings deposits | $14,986 | $14,723 | 9 % | | Time deposits | $12,737 | $14,272 | 8 % | | **Total deposits** | **$165,212** | **$162,448** | **100 %** | - Commercial Banking deposits increased from **$43,366 million to $47,651 million (9.9% growth)** from Dec 31, 2024, to Sep 30, 2025[18](index=18&type=chunk) - Consumer & Regional Banking deposits decreased from **$111,390 million to $110,043 million (1.2% decrease)** from Dec 31, 2024, to Sep 30, 2025[18](index=18&type=chunk) [Consolidated Quarterly Average Balance Sheets](index=9&type=section&id=Consolidated%20Quarterly%20Average%20Balance%20Sheets) For Q3 2025, average total assets increased by **1% QoQ and 6% YoY**, reaching **$209,727 million**, with average earning assets growing, driven by a **2% QoQ and 9% YoY increase in average loans and leases**, and average total deposits seeing a **1% QoQ and 5% YoY increase** Average Balance Sheet Highlights (Q3 2025 vs. Q2 2025 and Q3 2024) | Metric (in millions) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change vs. 2Q25 | % Change vs. 3Q24 | | :------------------- | :----------- | :----------- | :----------- | :---------------- | :---------------- | | Average total assets | $209,727 | $207,852 | $198,278 | 1 % | 6 % | | Average earning assets | $192,732 | $191,092 | $181,891 | 1 % | 6 % | | Average loans and leases | $135,944 | $133,171 | $124,507 | 2 % | 9 % | | Average total deposits | $164,812 | $163,429 | $156,488 | 1 % | 5 % | | Average tangible common shareholders' equity | $13,587 | $12,935 | $12,069 | 5 % | 13 % | - Average commercial loans increased by **3% QoQ and 12% YoY**, while average consumer loans increased by **1% QoQ and 5% YoY**[19](index=19&type=chunk) - Average interest-bearing deposits increased by **1% QoQ and 6% YoY**, with money market deposits showing a **2% QoQ and 12% YoY increase**[19](index=19&type=chunk) [Consolidated Quarterly Net Interest Margin - Interest Income / Expense](index=10&type=section&id=Consolidated%20Quarterly%20Net%20Interest%20Margin%20-%20Interest%20Income%20%2F%20Expense) Net interest income (FTE) for Q3 2025 was **$1,523 million**, a **3% increase QoQ and 12% increase YoY**, driven by higher interest income from loans and leases, particularly commercial and industrial loans, while interest expense on deposits remained relatively stable QoQ but decreased YoY for time deposits Quarterly Interest Income / Expense (FTE, in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Total earning assets interest income | $2,617 | $2,572 | $2,568 | | Total loans and leases interest income | $2,057 | $1,977 | $1,911 | | Commercial and industrial interest income | $959 | $914 | $840 | | Total interest-bearing liabilities interest expense | $1,094 | $1,089 | $1,204 | | Total interest-bearing deposits interest expense | $830 | $822 | $945 | | Net interest income (FTE) | $1,523 | $1,483 | $1,364 | - Interest income from commercial and industrial loans increased by **$45 million QoQ (4.9%) and $119 million YoY (14.2%)**[21](index=21&type=chunk) - Interest expense on time deposits decreased by **$8 million QoQ (6.5%) and $65 million YoY (35.9%)**[21](index=21&type=chunk) [Consolidated Quarterly Net Interest Margin - Yields / Rates](index=11&type=section&id=Consolidated%20Quarterly%20Net%20Interest%20Margin%20-%20Yields%20%2F%20Rates) The net interest margin (FTE) improved to **3.13%** in Q3 2025, up from **3.11% QoQ and 2.98% YoY**, driven by a stable yield on earning assets (**5.39%**) and a decrease in the total cost of deposits (**2.00%**), leading to an increased net interest rate spread Quarterly Average Yields / Rates (FTE) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Total earning assets yield | 5.39 % | 5.40 % | 5.62 % | | Total loans and leases yield | 5.96 % | 5.91 % | 6.05 % | | Total interest-bearing liabilities rate | 2.81 % | 2.85 % | 3.32 % | | Total interest-bearing deposits rate | 2.43 % | 2.46 % | 2.94 % | | Net interest rate spread | 2.58 % | 2.55 % | 2.30 % | | Net interest margin | 3.13 % | 3.11 % | 2.98 % | | Total cost of deposits | 2.00 % | 2.02 % | 2.40 % | - The yield on commercial and industrial loans remained stable at **6.11% QoQ**, while the rate on money market deposits decreased from **3.05% to 2.99% QoQ**[23](index=23&type=chunk) - The impact of noninterest-bearing funds on margin decreased from **0.56% to 0.55% QoQ** and from **0.68% YoY**[23](index=23&type=chunk) [Selected Quarterly Income Statement Data](index=12&type=section&id=Selected%20Quarterly%20Income%20Statement%20Data) Huntington Bancshares reported a significant increase in net income applicable to common shares to **$602 million** in Q3 2025, up **18% QoQ and 25% YoY**, with total revenue (FTE) growing by **10% QoQ and 14% YoY**, driven by strong noninterest income, particularly from net gains on sales of securities and other noninterest income Selected Quarterly Income Statement Data (in millions, except per share) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | | Net interest income | $1,506 | $1,467 | $1,351 | | Provision for credit losses | $122 | $103 | $106 | | Total noninterest income | $628 | $471 | $523 | | Net gains (losses) on sales of securities | $0 | $(58) | $0 | | Other noninterest income | $68 | $26 | $33 | | Total noninterest expense | $1,246 | $1,197 | $1,130 | | Income before income taxes | $766 | $638 | $638 | | Net income applicable to common shares | $602 | $509 | $481 | | Net income per common share - diluted | $0.41 | $0.34 | $0.33 | | Total revenue (FTE) | $2,151 | $1,954 | $1,887 | - Noninterest income increased by **$157 million QoQ (33.3%) and $105 million YoY (20.1%)**, largely due to a shift from net losses to no gains/losses on sales of securities and higher 'Other noninterest income'[25](index=25&type=chunk) - Personnel costs increased by **$35 million QoQ (4.8%) and $73 million YoY (10.7%)**[25](index=25&type=chunk) [Quarterly Mortgage Banking Noninterest Income](index=13&type=section&id=Quarterly%20Mortgage%20Banking%20Noninterest%20Income) Mortgage banking income significantly increased to **$43 million** in Q3 2025, up **54% QoQ and 13% YoY**, primarily driven by higher net origination and secondary marketing income, and a positive shift in net MSR risk management, despite a negative MSR valuation adjustment Quarterly Mortgage Banking Noninterest Income (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | | Net origination and secondary marketing income | $30 | $26 | $25 | | Net mortgage servicing income | $12 | $2 | $13 | | MSR valuation adjustment | $(1) | $0 | $(25) | | Gains (losses) due to MSR hedging | $4 | $(6) | $27 | | Mortgage banking income | $43 | $28 | $38 | | Mortgage origination volume | $2,243 | $2,412 | $1,883 | - Net origination and secondary marketing income increased by **15% QoQ and 20% YoY**[26](index=26&type=chunk) - Net MSR risk management improved significantly from **$(6) million in Q2 2025 to $3 million in Q3 2025**, and from **$2 million in Q3 2024**[26](index=26&type=chunk) [Quarterly Credit Reserves Analysis](index=14&type=section&id=Quarterly%20Credit%20Reserves%20Analysis) The Allowance for Loan and Lease Losses (ALLL) increased to **$2,374 million** at September 30, 2025, from **$2,235 million** a year prior, reflecting a provision for loan and lease losses of **$118 million** for the quarter, while ALLL as a percentage of total loans and leases remained stable QoQ at **1.72%** but decreased from **1.77% YoY** Quarterly Credit Reserves (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | | Allowance for loan and lease losses, end of period | $2,374 | $2,331 | $2,235 | | Provision for loan and lease losses | $118 | $134 | $24 | | Net loan and lease charge-offs | $(75) | $(66) | $(93) | | Total allowance for credit losses, end of period | $2,562 | $2,515 | $2,436 | | ALLL as % of total loans and leases | 1.72 % | 1.73 % | 1.77 % | | ACL as % of total loans and leases | 1.86 % | 1.86 % | 1.93 % | - Provision for loan and lease losses decreased by **$16 million QoQ** but significantly increased by **$94 million YoY**[29](index=29&type=chunk) - The allocation of ALLL for commercial loans increased to **$1,568 million from $1,498 million YoY**, while consumer loans increased to **$806 million from $737 million YoY**[29](index=29&type=chunk) [Quarterly Net Charge-Off Analysis](index=15&type=section&id=Quarterly%20Net%20Charge-Off%20Analysis) Total net charge-offs for Q3 2025 were **$75 million**, an increase from **$66 million QoQ** but a decrease from **$93 million YoY**, with net charge-offs as a percentage of average loans and leases at **0.22%**, slightly up QoQ but down YoY, indicating improved credit quality compared to the prior year Quarterly Net Charge-Offs (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | | Total net charge-offs | $75 | $66 | $93 | | Commercial net charge-offs | $36 | $31 | $54 | | Consumer net charge-offs | $39 | $35 | $39 | | Net charge-offs as a % of average loans and leases | 0.22 % | 0.20 % | 0.30 % | - Commercial net charge-offs increased by **$5 million QoQ** but decreased by **$18 million YoY**[30](index=30&type=chunk) - Consumer net charge-offs increased by **$4 million QoQ**, remaining stable YoY[30](index=30&type=chunk) [Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)](index=16&type=section&id=Quarterly%20Nonaccrual%20Loans%20and%20Leases%20(NALs)%20and%20Nonperforming%20Assets%20(NPAs)) Total nonaccrual loans and leases (NALs) decreased to **$808 million** at September 30, 2025, from **$842 million QoQ**, but increased from **$738 million YoY**, with the NAL ratio improving to **0.59% QoQ**, and the NPA ratio also improving to **0.60% QoQ**, indicating a slight improvement in asset quality Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs) (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | | Total nonaccrual loans and leases | $808 | $842 | $738 | | Total nonperforming assets | $821 | $852 | $784 | | NALs as a % of total loans and leases | 0.59 % | 0.62 % | 0.58 % | | NPA ratio | 0.60 % | 0.63 % | 0.62 % | - New nonperforming assets decreased from **$343 million in Q2 2025 to $252 million in Q3 2025**[31](index=31&type=chunk) - Commercial and industrial NALs decreased from **$489 million to $455 million QoQ**[31](index=31&type=chunk) [Quarterly Accruing Past Due Loans and Leases](index=17&type=section&id=Quarterly%20Accruing%20Past%20Due%20Loans%20and%20Leases) Total accruing loans and leases past due 90+ days, including U.S. Government guaranteed loans, decreased to **$234 million** in Q3 2025 from **$241 million QoQ**, with the ratio of these loans to total loans and leases remaining stable at **0.17% QoQ and 0.18% YoY** Quarterly Accruing Past Due Loans and Leases (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | | Total accruing loans and leases past due 90+ days, including loans guaranteed by the U.S. Government | $234 | $241 | $224 | | Excluding loans guaranteed by the U.S. Government | $82 | $92 | $88 | | Guaranteed by U.S. Government | $152 | $149 | $136 | | Ratio (incl. guaranteed) as % of total loans and leases | 0.17 % | 0.18 % | 0.18 % | - Accruing residential mortgage loans (excluding guaranteed) past due 90+ days decreased from **$40 million to $35 million QoQ**[34](index=34&type=chunk) [Quarterly Capital Under Current Regulatory Standards (Basel III)](index=18&type=section&id=Quarterly%20Capital%20Under%20Current%20Regulatory%20Standards%20(Basel%20III)) Huntington Bancshares maintained strong capital ratios under Basel III, with the estimated Common Equity Tier 1 (CET1) risk-based capital ratio increasing to **10.6%** in Q3 2025 from **10.5% QoQ and 10.4% YoY**, reflecting a solid capital position with improved total risk-based capital Quarterly Regulatory Capital Ratios (Basel III) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | | Common equity tier 1 capital | $15,924 | $15,539 | $14,803 | | Common equity tier 1 risk-based capital ratio | 10.6 % | 10.5 % | 10.4 % | | Tier 1 leverage ratio | 9.0 % | 8.5 % | 8.8 % | | Total risk-based capital ratio | 14.7 % | 14.1 % | 14.1 % | | Risk-weighted assets (RWA) | $150,221 | $148,602 | $142,543 | - The impact of the CECL deferral was fully phased in for periods beginning on or after January 1, 2025[36](index=36&type=chunk) - Adjusted CET1 ratio (non-GAAP) increased to **9.2% from 9.0% QoQ and 8.9% YoY**[35](index=35&type=chunk) [Quarterly Common Stock Summary, Non-Regulatory Capital, and Other Data](index=19&type=section&id=Quarterly%20Common%20Stock%20Summary%2C%20Non-Regulatory%20Capital%2C%20and%20Other%20Data) The company reported a tangible book value per common share of **$9.54** at September 30, 2025, an increase of **4% QoQ and 10% YoY**, with the tangible common equity to tangible asset ratio also improving to **6.8% QoQ**, and operational data showing stable employee count and branch network Quarterly Common Stock and Non-Regulatory Capital Data | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | | Cash dividends declared per common share | $0.155 | $0.155 | $0.155 | | Tangible book value per common share | $9.54 | $9.13 | $8.65 | | Total tangible common equity | $13,919 | $13,320 | $12,566 | | Tangible common equity / tangible asset ratio | 6.8 % | 6.6 % | 6.4 % | | Return on average tangible common shareholders' equity | 17.8 % | 16.1 % | 16.2 % | - Average full-time equivalent employees remained stable at **20,247**, with **972 domestic full-service branches**[41](index=41&type=chunk) - Return on average tangible common shareholders' equity increased to **17.8% from 16.1% QoQ and 16.2% YoY**[42](index=42&type=chunk) Year-to-Date Financial Overview [Year-to-Date Key Statistics](index=4&type=section&id=Year-to-Date%20Key%20Statistics) For the nine months ended September 30, 2025, Huntington Bancshares demonstrated strong year-over-year growth in net income and diluted EPS, with net interest income and total revenue also seeing double-digit percentage increases, an improved efficiency ratio, and mixed trends in credit quality metrics Key Year-to-Date Financial Highlights (Nine Months Ended Sep 30, 2025 vs. 2024) | Metric (in millions, except per share) | Sep 30, 2025 | Sep 30, 2024 | Change Amount | % Change | | :------------------------------------- | :----------- | :----------- | :------------ | :------- | | Net interest income (FTE) | $4,447 | $3,989 | $458 | 11 % | | Provision for credit losses | $340 | $313 | $27 | 9 % | | Noninterest income | $1,593 | $1,481 | $112 | 8 % | | Noninterest expense | $3,595 | $3,384 | $211 | 6 % | | Income before income taxes | $2,057 | $1,734 | $323 | 19 % | | Net income applicable to common shares | $1,611 | $1,303 | $308 | 24 % | | Net income per common share - diluted | $1.09 | $0.88 | $0.21 | 24 % | | Return on average assets | 1.09 % | 0.97 % | | | | Net interest margin | 3.12 % | 3.00 % | | | | Efficiency ratio | 58.4 % | 61.2 % | | | | Average total assets | $207,572 | $194,395 | $13,177 | 7 % | | Average loans and leases | $133,344 | $123,276 | $10,068 | 8 % | | Average total deposits | $163,292 | $153,609 | $9,683 | 6 % | | NCOs as a % of average loans and leases| 0.23 % | 0.30 % | | | [Consolidated Year-to-Date Average Balance Sheets](index=21&type=section&id=Consolidated%20Year-to-Date%20Average%20Balance%20Sheets) For the nine months ended September 30, 2025, average total assets increased by **7% YoY to $207,572 million**, supported by a **7% increase in average earning assets** and an **8% increase in average loans and leases**, with average total deposits also growing by **6% YoY** Year-to-Date Average Balance Sheet Highlights (Nine Months Ended Sep 30, 2025 vs. 2024) | Metric (in millions) | Sep 30, 2025 | Sep 30, 2024 | Change Amount | % Change | | :------------------- | :----------- | :----------- | :------------ | :------- | | Average total assets | $207,572 | $194,395 | $13,177 | 7 % | | Average earning assets | $190,724 | $177,920 | $12,804 | 7 % | | Average loans and leases | $133,344 | $123,276 | $10,068 | 8 % | | Average total deposits | $163,292 | $153,609 | $9,683 | 6 % | | Average tangible common shareholders' equity | $12,970 | $11,476 | $1,494 | 13 % | - Average commercial loans increased by **10% YoY**, while average consumer loans increased by **6% YoY**[44](index=44&type=chunk) - Average interest-bearing deposits increased by **8% YoY**, with money market deposits showing a **14% YoY increase**[44](index=44&type=chunk) [Consolidated Year-to-Date Net Interest Margin - Interest Income / Expense](index=22&type=section&id=Consolidated%20Year-to-Date%20Net%20Interest%20Margin%20-%20Interest%20Income%20%2F%20Expense) Year-to-date net interest income (FTE) increased by **11% to $4,447 million** for the nine months ended September 30, 2025, compared to the same period in 2024, driven by a **3% increase in total earning assets interest income**, while total interest-bearing liabilities interest expense decreased by **6%** Year-to-Date Interest Income / Expense (FTE, in millions) | Metric | Sep 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | | Total earning assets interest income | $7,693 | $7,450 | | Total loans and leases interest income | $5,947 | $5,591 | | Commercial and industrial interest income | $2,746 | $2,470 | | Total interest-bearing liabilities interest expense | $3,246 | $3,461 | | Total interest-bearing deposits interest expense | $2,462 | $2,709 | | Net interest income (FTE) | $4,447 | $3,989 | - Interest income from commercial and industrial loans increased by **$276 million (11.2%) YoY**[46](index=46&type=chunk) - Interest expense on time deposits decreased by **$156 million (29.1%) YoY**[46](index=46&type=chunk) [Consolidated Year-to-Date Net Interest Margin - Yields / Rates](index=23&type=section&id=Consolidated%20Year-to-Date%20Net%20Interest%20Margin%20-%20Yields%20%2F%20Rates) The year-to-date net interest margin (FTE) improved to **3.12%** for the nine months ended September 30, 2025, up from **3.00%** in the prior year, driven by a higher net interest rate spread (**2.55% vs. 2.29%**) and a decrease in the total cost of deposits (**2.02% vs. 2.36%**), despite a slight decrease in the total earning assets yield Year-to-Date Average Yields / Rates (FTE) | Metric | Sep 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | | Total earning assets yield | 5.39 % | 5.59 % | | Total loans and leases yield | 5.91 % | 6.00 % | | Total interest-bearing liabilities rate | 2.84 % | 3.30 % | | Total interest-bearing deposits rate | 2.45 % | 2.91 % | | Net interest rate spread | 2.55 % | 2.29 % | | Net interest margin | 3.12 % | 3.00 % | | Total cost of deposits | 2.02 % | 2.36 % | - The yield on commercial and industrial loans decreased from **6.30% to 6.09% YoY**, while the rate on money market deposits decreased from **3.78% to 3.04% YoY**[48](index=48&type=chunk) - The impact of noninterest-bearing funds on margin decreased from **0.71% to 0.57% YoY**[48](index=48&type=chunk) [Selected Year-to-Date Income Statement Data](index=24&type=section&id=Selected%20Year-to-Date%20Income%20Statement%20Data) For the nine months ended September 30, 2025, net income applicable to common shares increased by **24% to $1,611 million YoY**, with total revenue (FTE) growing by **10% to $6,040 million**, driven by an **11% increase in net interest income** and an **8% increase in noninterest income**, despite a **$58 million net loss on sales of securities** Selected Year-to-Date Income Statement Data (in millions, except per share) | Metric | Sep 30, 2025 | Sep 30, 2024 | Change Amount | % Change | | :------------------------------------- | :----------- | :----------- | :------------ | :------- | | Net interest income | $4,399 | $3,950 | $449 | 11 % | | Provision for credit losses | $340 | $313 | $27 | 9 % | | Total noninterest income | $1,593 | $1,481 | $112 | 8 % | | Net gains (losses) on sales of securities | $(58) | $0 | $(58) | (100) % | | Total noninterest expense | $3,595 | $3,384 | $211 | 6 % | | Income before income taxes | $2,057 | $1,734 | $323 | 19 % | | Net income applicable to common shares | $1,611 | $1,303 | $308 | 24 % | | Net income per common share - diluted | $1.09 | $0.88 | $0.21 | 24 % | | Total revenue (FTE) | $6,040 | $5,470 | $570 | 10 % | - Payments and cash management revenue increased by **8% YoY**, and Capital markets and advisory fees increased by **18% YoY**[51](index=51&type=chunk) - Personnel costs increased by **8% YoY**, while deposit and other insurance expense decreased by **30% YoY**[51](index=51&type=chunk) [Year-to-Date Mortgage Banking Noninterest Income](index=25&type=section&id=Year-to-Date%20Mortgage%20Banking%20Noninterest%20Income) Year-to-date mortgage banking income increased by **3% to $102 million** for the nine months ended September 30, 2025, compared to the prior year, primarily driven by a **28% increase in net origination and secondary marketing income**, despite a decrease in total net mortgage servicing income due to MSR valuation adjustments Year-to-Date Mortgage Banking Noninterest Income (in millions) | Metric | Sep 30, 2025 | Sep 30, 2024 | Change Amount | % Change | | :------------------------------------- | :----------- | :----------- | :------------ | :------- | | Net origination and secondary marketing income | $74 | $58 | $16 | 28 % | | Total net mortgage servicing income | $27 | $40 | $(13) | (33) % | | MSR valuation adjustment | $(16) | $6 | $(22) | (367) % | | Mortgage banking income | $102 | $99 | $3 | 3 % | | Mortgage origination volume | $6,254 | $5,323 | $931 | 17 % | - Mortgage origination volume increased by **17% YoY**, with volume for sale increasing by **23% YoY**[52](index=52&type=chunk) - Mortgage servicing rights (MSR) increased by **12% to $576 million YoY**[52](index=52&type=chunk) [Year-to-Date Credit Reserves Analysis](index=26&type=section&id=Year-to-Date%20Credit%20Reserves%20Analysis) For the nine months ended September 30, 2025, the Allowance for Loan and Lease Losses (ALLL) increased to **$2,374 million** from **$2,235 million YoY**, with a provision for loan and lease losses of **$357 million**, while ALLL as a percentage of total loans and leases decreased slightly to **1.72% from 1.77% YoY** Year-to-Date Credit Reserves (in millions) | Metric | Sep 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | | Allowance for loan and lease losses, end of period | $2,374 | $2,235 | | Provision for loan and lease losses | $357 | $255 | | Net loan and lease charge-offs | $(227) | $(275) | | Total allowance for credit losses, end of period | $2,562 | $2,436 | | ALLL as % of total loans and leases | 1.72 % | 1.77 % | | ACL as % of total loans and leases | 1.86 % | 1.93 % | - Provision for loan and lease losses increased by **$102 million (40%) YoY**[55](index=55&type=chunk) - Net loan and lease charge-offs decreased by **$48 million (17.5%) YoY**[55](index=55&type=chunk) [Year-to-Date Net Charge-Off Analysis](index=27&type=section&id=Year-to-Date%20Net%20Charge-Off%20Analysis) Year-to-date total net charge-offs decreased to **$227 million** for the nine months ended September 30, 2025, from **$275 million** in the prior year, with net charge-offs as a percentage of average loans and leases improving to **0.23% from 0.30% YoY**, indicating an overall improvement in credit quality Year-to-Date Net Charge-Offs (in millions) | Metric | Sep 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | | Total net charge-offs | $227 | $275 | | Commercial net charge-offs | $111 | $166 | | Consumer net charge-offs | $116 | $109 | | Net charge-offs as a % of average loans and leases | 0.23 % | 0.30 % | - Commercial net charge-offs decreased by **$55 million (33.1%) YoY**, primarily due to a significant improvement in commercial real estate charge-offs[57](index=57&type=chunk) - Consumer net charge-offs increased by **$7 million (6.4%) YoY**, mainly driven by automobile loans[57](index=57&type=chunk) [Year-to-Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)](index=28&type=section&id=Year-to-Date%20Nonaccrual%20Loans%20and%20Leases%20(NALs)%20and%20Nonperforming%20Assets%20(NPAs)) Year-to-date total nonaccrual loans and leases (NALs) increased to **$808 million** at September 30, 2025, from **$738 million YoY**, with total nonperforming assets (NPAs) also increasing to **$821 million from $784 million YoY**, however, the NPA ratio remained relatively stable at **0.60% compared to 0.62% YoY** Year-to-Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs) (in millions) | Metric | Sep 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | | Total nonaccrual loans and leases | $808 | $738 | | Total nonperforming assets | $821 | $784 | | NALs as a % of total loans and leases | 0.59 % | 0.58 % | | NPA ratio | 0.60 % | 0.62 % | | New nonperforming assets | $845 | $833 | - Commercial and industrial NALs increased from **$408 million to $455 million YoY**[59](index=59&type=chunk) - Payments on nonperforming assets increased significantly from **$375 million to $548 million YoY**[59](index=59&type=chunk)

General Information & Disclosures Details financial statement preparation, management estimates, and the application of non-GAAP measures for comprehensive reporting [Notes on Financial Statement Preparation](index=2&type=section&id=Notes%20on%20Financial%20Statement%20Preparation) The preparation of financial statements in accordance with GAAP necessitates management's use of estimates and assumptions, which may lead to actual results differing from those estimates - Financial statement data relies on **management estimates and assumptions**, which may lead to differences from actual results[4](index=4&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures, including FTE basis and non-regulatory capital ratios, enhance understanding of financial position and operational results - **Non-GAAP financial measures** are used to provide additional insights into operations and financial position, with comparable GAAP measures and reconciliations included[5](index=5&type=chunk) - **Fully-Taxable Equivalent (FTE) basis** is a non-GAAP measure for comparing interest margins and assessing revenue from taxable and tax-exempt sources, assuming a **21% federal statutory tax rate**[6](index=6&type=chunk) - **Non-regulatory capital ratios**, including Tangible common equity to tangible assets, Tangible common equity to risk-weighted assets, and Adjusted common equity tier 1 (CET1), evaluate capital utilization and adequacy, differing from regulatory definitions by excluding preferred securities and including AOCI impact for adjusted CET1[7](index=7&type=chunk)[9](index=9&type=chunk) Quarterly Financial Performance Presents quarterly financial performance analysis, covering key statistics, balance sheet, net interest margin, income, credit quality, and capital adequacy [Quarterly Key Statistics](index=3&type=section&id=Quarterly%20Key%20Statistics) Q3 2025 shows significant growth in net income and diluted EPS, improved profitability and efficiency, and stable asset quality metrics | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change vs 2Q25 | Change vs 3Q24 | | :--------------------------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Net interest income (FTE) | $1,523M | $1,483M | $1,364M | 3% | 12% | | Net income applicable to common shares | $602M | $509M | $481M | 18% | 25% | | Net income per common share - diluted | $0.41 | $0.34 | $0.33 | 21% | 24% | | Return on average assets | 1.19% | 1.04% | 1.04% | +0.15 pp | +0.15 pp | | Return on average common shareholders' equity | 12.4% | 11.0% | 10.8% | +1.4 pp | +1.6 pp | | Net interest margin | 3.13% | 3.11% | 2.98% | +0.02 pp | +0.15 pp | | Efficiency ratio | 57.4% | 59.0% | 59.4% | -1.6 pp | -2.0 pp | | Average total assets | $209,727M | $207,852M | $198,278M | 1% | 6% | | Average loans and leases | $135,944M | $133,171M | $124,507M | 2% | 9% | | Average total deposits | $164,812M | $163,429M | $156,488M | 1% | 5% | | NCOs as a % of average loans and leases | 0.22% | 0.20% | 0.30% | +0.02 pp | -0.08 pp | | NAL ratio | 0.59% | 0.62% | 0.58% | -0.03 pp | +0.01 pp | | NPA ratio | 0.60% | 0.63% | 0.62% | -0.03 pp | -0.02 pp | | Common equity tier 1 risk-based capital ratio | 10.6% | 10.5% | 10.4% | +0.1 pp | +0.2 pp | | Tangible common equity / tangible asset ratio | 6.8% | 6.6% | 6.4% | +0.2 pp | +0.4 pp | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased by **3%** and shareholders' equity by **13%** as of September 30, 2025, driven by loan and lease growth | Metric | Sep 30, 2025 | Dec 31, 2024 | Percent Change | | :-------------------------------- | :----------- | :----------- | :------------- | | Total assets | $210,228M | $204,230M | 3% | | Total liabilities | $187,942M | $184,448M | 2% | | Total Huntington shareholders' equity | $22,248M | $19,740M | 13% | | Loans and leases | $137,956M | $130,042M | 6% | | Deposits | $165,212M | $162,448M | 2% | | Preferred stock | $2,731M | $1,989M | 37% | | Accumulated other comprehensive income (loss) | $(2,071)M | $(2,866)M | 28% | [Loans and Leases Composition](index=7&type=section&id=Loans%20and%20Leases%20Composition) Total loans and leases reached **$137,956 million** at September 30, 2025, with commercial loans at **57%** and consumer loans at **43%** | Loan Type | Sep 30, 2025 | Dec 31, 2024 | | :-------------------------- | :----------- | :----------- | | Total loans and leases | $137,956M | $130,042M | | Commercial and industrial | $62,978M | $56,809M | | Commercial real estate | $10,732M | $11,078M | | Lease financing | $5,515M | $5,454M | | Residential mortgage | $24,502M | $24,242M | | Automobile | $15,996M | $14,564M | | Home equity | $10,314M | $10,142M | - Commercial loans constituted **57%** of the total loan portfolio, while consumer loans made up **43%** as of September 30, 2025[17](index=17&type=chunk) [Deposits Composition](index=8&type=section&id=Deposits%20Composition) Total deposits were **$165,212 million** at September 30, 2025, with money market deposits at **38%** and Consumer & Regional Banking holding **67%** | Deposit Type | Sep 30, 2025 | Dec 31, 2024 | | :-------------------------- | :----------- | :----------- | | Total deposits | $165,212M | $162,448M | | Demand deposits - noninterest bearing | $28,596M | $29,345M | | Demand deposits - interest bearing | $46,056M | $43,378M | | Money market deposits | $62,837M | $60,730M | | Savings deposits | $14,986M | $14,723M | | Time deposits | $12,737M | $14,272M | - Money market deposits represented the largest portion of total deposits at **38%** as of September 30, 2025[18](index=18&type=chunk) - The Consumer & Regional Banking segment accounted for **67%** of total deposits[18](index=18&type=chunk) [Consolidated Quarterly Average Balance Sheets](index=9&type=section&id=Consolidated%20Quarterly%20Average%20Balance%20Sheets) Average total assets increased **1%** QoQ and **6%** YoY for Q3 2025, driven by growth in average loans, leases, and deposits | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change vs 2Q25 | Change vs 3Q24 | | :-------------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Average total assets | $209,727M | $207,852M | $198,278M | 1% | 6% | | Average earning assets | $192,732M | $191,092M | $181,891M | 1% | 6% | | Average loans and leases | $135,944M | $133,171M | $124,507M | 2% | 9% | | Average total deposits | $164,812M | $163,429M | $156,488M | 1% | 5% | | Average Huntington shareholders' equity | $21,348M | $20,548M | $20,113M | 4% | 6% | [Consolidated Quarterly Net Interest Margin - Interest Income / Expense](index=10&type=section&id=Consolidated%20Quarterly%20Net%20Interest%20Margin%20-%20Interest%20Income%20%2F%20Expense) Net interest income (FTE) for Q3 2025 was **$1,523 million**, increasing QoQ and YoY due to higher interest income from loans and leases | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Total earning assets interest income | $2,617M | $2,572M | $2,568M | | Total interest-bearing liabilities interest expense | $1,094M | $1,089M | $1,204M | | Net interest income | $1,523M | $1,483M | $1,364M | | Interest income from loans and leases | $2,057M | $1,977M | $1,911M | [Consolidated Quarterly Net Interest Margin - Yields / Rates](index=11&type=section&id=Consolidated%20Quarterly%20Net%20Interest%20Margin%20-%20Yields%20%2F%20Rates) Net interest margin improved to **3.13%** in Q3 2025, reflecting a higher net interest rate spread despite a slight increase in deposit costs | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Total earning assets yield | 5.39% | 5.40% | 5.62% | | Total interest-bearing liabilities rate | 2.81% | 2.85% | 3.32% | | Net interest rate spread | 2.58% | 2.55% | 2.30% | | Net interest margin | 3.13% | 3.11% | 2.98% | | Total cost of deposits | 2.00% | 2.02% | 2.40% | - Net interest margin increased by **0.02 percentage points** QoQ and **0.15 percentage points** YoY[23](index=23&type=chunk) - Total cost of deposits decreased by **0.02 percentage points** QoQ and **0.40 percentage points** YoY[23](index=23&type=chunk) [Selected Quarterly Income Statement Data](index=12&type=section&id=Selected%20Quarterly%20Income%20Statement%20Data) Net income applicable to common shares increased **18%** QoQ and **25%** YoY in Q3 2025, driven by higher net interest and noninterest income | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change vs 2Q25 | Change vs 3Q24 | | :--------------------------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Net interest income | $1,506M | $1,467M | $1,351M | 3% | 11% | | Provision for credit losses | $122M | $103M | $106M | 18% | 15% | | Total noninterest income | $628M | $471M | $523M | 33% | 20% | | Total noninterest expense | $1,246M | $1,197M | $1,130M | 4% | 10% | | Income before income taxes | $766M | $638M | $638M | 20% | 20% | | Net income applicable to common shares | $602M | $509M | $481M | 18% | 25% | | Net income per common share - diluted | $0.41 | $0.34 | $0.33 | 21% | 24% | | Total revenue (FTE) | $2,151M | $1,954M | $1,887M | 10% | 14% | [Quarterly Mortgage Banking Noninterest Income](index=13&type=section&id=Quarterly%20Mortgage%20Banking%20Noninterest%20Income) Mortgage banking income increased **54%** QoQ and **13%** YoY in Q3 2025, driven by higher net origination and improved MSR risk management | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change vs 2Q25 | Change vs 3Q24 | | :--------------------------------------- | :----------- | :----------- | :----------- | :------------- | :------------- | | Net origination and secondary marketing income | $30M | $26M | $25M | 15% | 20% | | Net mortgage servicing income | $12M | $2M | $13M | 500% | (8)% | | Mortgage banking income | $43M | $28M | $38M | 54% | 13% | | Mortgage origination volume | $2,243M | $2,412M | $1,883M | (7)% | 19% | - Net MSR risk management showed a positive contribution of **$3 million** in Q3 2025, a significant improvement from a **$(6) million** loss in Q2 2025 and a **$2 million** gain in Q3 2024[26](index=26&type=chunk) [Quarterly Credit Reserves Analysis](index=14&type=section&id=Quarterly%20Credit%20Reserves%20Analysis) ALLL increased to **$2,374 million** at September 30, 2025, with ALLL as a percentage of total loans and leases slightly decreasing to **1.72%** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | | Allowance for loan and lease losses, end of period | $2,374M | $2,331M | $2,235M | | Total allowance for credit losses, end of period | $2,562M | $2,515M | $2,436M | | ALLL as % of total loans and leases | 1.72% | 1.73% | 1.77% | | ACL as % of total loans and leases | 1.86% | 1.86% | 1.93% | | Provision for loan and lease losses | $118M | $134M | $24M | - The provision for loan and lease losses was **$118 million** for Q3 2025, a decrease from **$134 million** in Q2 2025 but significantly higher than **$24 million** in Q3 2024[29](index=29&type=chunk) [Quarterly Net Charge-Off Analysis](index=15&type=section&id=Quarterly%20Net%20Charge-Off%20Analysis) Total net charge-offs were **$75 million** in Q3 2025, with an annualized percentage of average loans and leases at **0.22%** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | | Total net charge-offs | $75M | $66M | $93M | | Net charge-offs as a % of average loans and leases | 0.22% | 0.20% | 0.30% | | Commercial and industrial net charge-offs | $39M | $32M | $51M | | Total consumer net charge-offs | $39M | $35M | $39M | - Commercial real estate showed net recoveries of **$(4) million** in Q3 2025, compared to **$(3) million** in Q2 2025 and **$5 million** in Q3 2024[30](index=30&type=chunk) [Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)](index=16&type=section&id=Quarterly%20Nonaccrual%20Loans%20and%20Leases%20(NALs)%20and%20Nonperforming%20Assets%20(NPAs)) Total NALs decreased to **$808 million** at September 30, 2025, with the NAL ratio at **0.59%**, and total NPAs also decreased | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | | Total nonaccrual loans and leases | $808M | $842M | $738M | | Total nonperforming assets | $821M | $852M | $784M | | NALs as a % of total loans and leases | 0.59% | 0.62% | 0.58% | | NPA ratio | 0.60% | 0.63% | 0.62% | | New nonperforming assets | $252M | $343M | $254M | - New nonperforming assets decreased to **$252 million** in Q3 2025 from **$343 million** in Q2 2025[31](index=31&type=chunk) [Quarterly Accruing Past Due Loans and Leases](index=17&type=section&id=Quarterly%20Accruing%20Past%20Due%20Loans%20and%20Leases) Total accruing loans and leases past due 90+ days, including U.S. Government guaranteed loans, were **$234 million** at September 30, 2025 | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | | Total, excl. loans guaranteed by the U.S. Government | $82M | $92M | $88M | | Add: loans guaranteed by U.S. Government | $152M | $149M | $136M | | Total accruing loans and leases past due 90+ days | $234M | $241M | $224M | | Ratio (incl. guaranteed) as % of total loans and leases | 0.17% | 0.18% | 0.18% | [Quarterly Capital Under Current Regulatory Standards (Basel III)](index=18&type=section&id=Quarterly%20Capital%20Under%20Current%20Regulatory%20Standards%20(Basel%20III)) Huntington Bancshares maintained strong Basel III capital ratios, with CET1 risk-based capital ratio increasing to **10.6%** at September 30, 2025 | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | | Common equity tier 1 capital | $15,924M | $15,539M | $14,803M | | Tier 1 capital | $18,665M | $17,538M | $17,207M | | Total risk-based capital | $22,022M | $21,003M | $20,110M | | Risk-weighted assets (RWA) | $150,221M | $148,602M | $142,543M | | Common equity tier 1 risk-based capital ratio | 10.6% | 10.5% | 10.4% | | Tier 1 leverage ratio | 9.0% | 8.5% | 8.8% | | Adjusted CET1 ratio | 9.2% | 9.0% | 8.9% | - The impact of the CECL deferral was fully phased in for periods beginning on or after January 1, 2025[36](index=36&type=chunk) [Quarterly Common Stock Summary, Non-Regulatory Capital, and Other Data](index=19&type=section&id=Quarterly%20Common%20Stock%20Summary%2C%20Non-Regulatory%20Capital%2C%20and%20Other%20Data) Tangible book value per common share increased to **$9.54** at September 30, 2025, with stable cash dividends and consistent employee and branch networks | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | | Cash dividends declared per common share | $0.155 | $0.155 | $0.155 | | Tangible book value per common share | $9.54 | $9.13 | $8.65 | | Tangible common equity / tangible asset ratio | 6.8% | 6.6% | 6.4% | | Number of employees (Average full-time equivalent) | 20,247 | 20,242 | 20,043 | | Number of domestic full-service branches | 972 | 971 | 975 | | Return on average tangible common shareholders' equity | 17.8% | 16.1% | 16.2% | Year-to-Date Financial Performance This section presents year-to-date financial performance, including key statistics, average balance sheets, net interest margin, income, credit quality, and nonperforming assets [Year-to-Date Key Statistics](index=4&type=section&id=Year-to-Date%20Key%20Statistics) YTD September 30, 2025, shows strong year-over-year growth in net income and diluted EPS, improved profitability, efficiency, and stable asset quality | Metric | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | Change (Amount) | Change (Percent) | | :--------------------------------------- | :----------------------------- | :----------------------------- | :-------------- | :--------------- | | Net interest income (FTE) | $4,447M | $3,989M | $458M | 11% | | Net income applicable to common shares | $1,611M | $1,303M | $308M | 24% | | Net income per common share - diluted | $1.09 | $0.88 | $0.21 | 24% | | Return on average assets | 1.09% | 0.97% | | | | Return on average common shareholders' equity | 11.6% | 10.2% | | | | Net interest margin | 3.12% | 3.00% | | | | Efficiency ratio | 58.4% | 61.2% | | | | Average total assets | $207,572M | $194,395M | $13,177M | 7% | | Average loans and leases | $133,344M | $123,276M | $10,068M | 8% | | Average total deposits | $163,292M | $153,609M | $9,683M | 6% | | NCOs as a % of average loans and leases | 0.23% | 0.30% | | | [Consolidated Year-to-Date Average Balance Sheets](index=21&type=section&id=Consolidated%20Year-to-Date%20Average%20Balance%20Sheets) Average total assets increased **7%** year-over-year for YTD September 30, 2025, driven by growth in average loans, leases, and deposits | Metric | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | Change (Amount) | Change (Percent) | | :-------------------------- | :----------------------------- | :----------------------------- | :-------------- | :--------------- | | Average total assets | $207,572M | $194,395M | $13,177M | 7% | | Average earning assets | $190,724M | $177,920M | $12,804M | 7% | | Average loans and leases | $133,344M | $123,276M | $10,068M | 8% | | Average total deposits | $163,292M | $153,609M | $9,683M | 6% | | Average Huntington shareholders' equity | $20,636M | $19,529M | $1,107M | 6% | [Consolidated Year-to-Date Net Interest Margin - Interest Income / Expense](index=22&type=section&id=Consolidated%20Year-to-Date%20Net%20Interest%20Margin%20-%20Interest%20Income%20%2F%20Expense) Net interest income (FTE) for YTD September 30, 2025, was **$4,447 million**, an **11%** YoY increase due to higher interest income from loans and leases | Metric | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total earning assets interest income | $7,693M | $7,450M | | Total interest-bearing liabilities interest expense | $3,246M | $3,461M | | Net interest income | $4,447M | $3,989M | | Interest income from loans and leases | $5,947M | $5,591M | [Consolidated Year-to-Date Net Interest Margin - Yields / Rates](index=23&type=section&id=Consolidated%20Year-to-Date%20Net%20Interest%20Margin%20-%20Yields%20%2F%20Rates) YTD net interest margin improved to **3.12%** for September 30, 2025, compared to **3.00%** prior year, driven by an increased net interest rate spread | Metric | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total earning assets yield | 5.39% | 5.59% | | Total interest-bearing liabilities rate | 2.84% | 3.30% | | Net interest rate spread | 2.55% | 2.29% | | Net interest margin | 3.12% | 3.00% | | Total cost of deposits | 2.02% | 2.36% | - Net interest margin increased by **0.12 percentage points** year-over-year[48](index=48&type=chunk) - Total cost of deposits decreased by **0.34 percentage points** year-over-year[50](index=50&type=chunk) [Selected Year-to-Date Income Statement Data](index=24&type=section&id=Selected%20Year-to-Date%20Income%20Statement%20Data) Net income applicable to common shares increased **24%** YoY for YTD September 30, 2025, supported by **11%** net interest income and **8%** noninterest income growth | Metric | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | Change (Amount) | Change (Percent) | | :--------------------------------------- | :----------------------------- | :----------------------------- | :-------------- | :--------------- | | Net interest income | $4,399M | $3,950M | $449M | 11% | | Provision for credit losses | $340M | $313M | $27M | 9% | | Total noninterest income | $1,593M | $1,481M | $112M | 8% | | Total noninterest expense | $3,595M | $3,384M | $211M | 6% | | Income before income taxes | $2,057M | $1,734M | $323M | 19% | | Net income applicable to common shares | $1,611M | $1,303M | $308M | 24% | | Net income per common share - diluted | $1.09 | $0.88 | $0.21 | 24% | | Total revenue (FTE) | $6,040M | $5,470M | $570M | 10% | [Year-to-Date Mortgage Banking Noninterest Income](index=25&type=section&id=Year-to-Date%20Mortgage%20Banking%20Noninterest%20Income) YTD mortgage banking income increased **3%** YoY for September 30, 2025, driven by higher net origination despite decreased net mortgage servicing income | Metric | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | Change (Amount) | Change (Percent) | | :--------------------------------------- | :----------------------------- | :----------------------------- | :-------------- | :--------------- | | Net origination and secondary marketing income | $74M | $58M | $16M | 28% | | Net mortgage servicing income | $27M | $40M | $(13)M | (33)% | | Mortgage banking income | $102M | $99M | $3M | 3% | | Mortgage origination volume | $6,254M | $5,323M | $931M | 17% | - MSR valuation adjustment showed a **$(16) million** loss in YTD 2025 compared to a **$6 million** gain in YTD 2024[52](index=52&type=chunk) [Year-to-Date Credit Reserves Analysis](index=26&type=section&id=Year-to-Date%20Credit%20Reserves%20Analysis) ALLL increased to **$2,374 million** at September 30, 2025, with ALLL as a percentage of total loans and leases at **1.72%** | Metric | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Allowance for loan and lease losses, end of period | $2,374M | $2,235M | | Total allowance for credit losses, end of period | $2,562M | $2,436M | | ALLL as % of total loans and leases | 1.72% | 1.77% | | ACL as % of total loans and leases | 1.86% | 1.93% | | Provision for loan and lease losses | $357M | $255M | - The provision for loan and lease losses increased by **$102 million** year-over-year[55](index=55&type=chunk) [Year-to-Date Net Charge-Off Analysis](index=27&type=section&id=Year-to-Date%20Net%20Charge-Off%20Analysis) Total net charge-offs decreased to **$227 million** for YTD September 30, 2025, with an annualized percentage of average loans and leases at **0.23%** | Metric | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Total net charge-offs | $227M | $275M | | Net charge-offs as a % of average loans and leases | 0.23% | 0.30% | | Commercial and industrial net charge-offs | $119M | $114M | | Commercial real estate net charge-offs | $(15)M | $54M | | Total consumer net charge-offs | $116M | $109M | - Commercial real estate showed net recoveries of **$(15) million** in YTD 2025, a significant improvement from **$54 million** in net charge-offs in YTD 2024[57](index=57&type=chunk) [Year-to-Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)](index=28&type=section&id=Year-to-Date%20Nonaccrual%20Loans%20and%20Leases%20(NALs)%20and%20Nonperforming%20Assets%20(NPAs)) Total NALs increased to **$808 million** and total NPAs to **$821 million** at September 30, 2025, compared to the prior year | Metric | At Sep 30, 2025 | At Sep 30, 2024 | | :--------------------------------------- | :-------------- | :-------------- | | Total nonaccrual loans and leases | $808M | $738M | | Total nonperforming assets | $821M | $784M | | NALs as a % of total loans and leases | 0.59% | 0.58% | | NPA ratio | 0.60% | 0.62% | | New nonperforming assets (Nine Months Ended) | $845M | $833M | - Payments on nonperforming assets increased to **$548 million** in YTD 2025 from **$375 million** in YTD 2024[59](index=59&type=chunk)

[General Notes and Definitions](index=2&type=section&id=General%20Notes%20and%20Definitions) This section clarifies the financial reporting standards, non-GAAP measures, and capital ratio definitions used throughout the report for consistent interpretation [GAAP and Non-GAAP Financial Measures](index=2&type=section&id=GAAP%20and%20Non-GAAP%20Financial%20Measures) Financial statements adhere to GAAP, requiring management estimates, and include non-GAAP measures with reconciliations for operational understanding - Financial statement data is prepared in conformity with GAAP, requiring management estimates and assumptions[4](index=4&type=chunk) - Non-GAAP financial measures are included to aid in understanding results, with comparable GAAP reconciliations provided[5](index=5&type=chunk) [Fully-Taxable Equivalent (FTE) Basis](index=2&type=section&id=Fully-Taxable%20Equivalent%20(FTE)%20Basis) Interest income, yields, and ratios are presented on an FTE basis, a non-GAAP measure, to accurately compare interest margins and assess revenue from taxable and tax-exempt sources, assuming a 21% federal statutory tax rate - Interest income, yields, and ratios on an FTE basis are non-GAAP financial measures[6](index=6&type=chunk) - The FTE basis provides a more accurate picture of interest margin for comparison and assesses comparability of revenue from taxable and tax-exempt sources, assuming a **21% federal statutory tax rate**[6](index=6&type=chunk) [Non-Regulatory Capital Ratios](index=2&type=section&id=Non-Regulatory%20Capital%20Ratios) The Company utilizes non-regulatory capital ratios, such as Tangible Common Equity to Tangible Assets and Adjusted CET1, to evaluate capital utilization and adequacy, differing from regulatory ratios by excluding preferred securities and including AOCI for Adjusted CET1 - Non-regulatory capital ratios, including **Tangible Common Equity to Tangible Assets**, **Tangible Common Equity to Risk-Weighted Assets**, and **Adjusted CET1**, are used to evaluate capital utilization and adequacy[7](index=7&type=chunk)[9](index=9&type=chunk) - These ratios are non-GAAP and differ from regulatory capital ratios primarily by excluding preferred securities and, for Adjusted CET1, including the impact of AOCI (excluding cash flow hedges)[7](index=7&type=chunk) - The Company encourages readers to consider consolidated financial statements in their entirety due to potential differences in calculation methods for these non-regulatory ratios among financial services companies[8](index=8&type=chunk) [Quarterly Financial Overview](index=3&type=section&id=Quarterly%20Financial%20Overview) This section provides a detailed analysis of the company's financial performance and position for the most recent quarter, highlighting key trends in income, expenses, balance sheet items, and credit quality metrics [Quarterly Key Statistics](index=3&type=section&id=Quarterly%20Key%20Statistics) Huntington Bancshares reported strong quarterly performance for Q3 2025, with significant increases in net income and diluted EPS compared to both the previous quarter and the prior year, alongside robust growth in Net Interest Income, Noninterest Income, and Income before income taxes, while credit quality metrics remained stable or improved Key Quarterly Financial Highlights (Q3 2025 vs. Q2 2025 and Q3 2024) | Metric (in millions, except per share) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change vs. 2Q25 | % Change vs. 3Q24 | | :------------------------------------- | :----------- | :----------- | :----------- | :----------------- | :----------------- | | Net interest income (FTE) | $1,523 | $1,483 | $1,364 | 3 % | 12 % | | Provision for credit losses | $122 | $103 | $106 | 18 % | 15 % | | Noninterest income | $628 | $471 | $523 | 33 % | 20 % | | Noninterest expense | $1,246 | $1,197 | $1,130 | 4 % | 10 % | | Income before income taxes | $766 | $638 | $638 | 20 % | 20 % | | Net income applicable to common shares | $602 | $509 | $481 | 18 % | 25 % | | Net income per common share - diluted | $0.41 | $0.34 | $0.33 | 21 % | 24 % | | Return on average assets | 1.19 % | 1.04 % | 1.04 % | | | | Net interest margin | 3.13 % | 3.11 % | 2.98 % | | | | Efficiency ratio | 57.4 % | 59.0 % | 59.4 % | | | | Average total assets | $209,727 | $207,852 | $198,278 | 1 % | 6 % | | Average loans and leases | $135,944 | $133,171 | $124,507 | 2 % | 9 % | | Average total deposits | $164,812 | $163,429 | $156,488 | 1 % | 5 % | | NCOs as a % of average loans and leases | 0.22 % | 0.20 % | 0.30 % | | | | NAL ratio | 0.59 % | 0.62 % | 0.58 % | | | | Common equity tier 1 risk-based capital ratio | 10.6 % | 10.5 % | 10.4 % | | | [Notes to Quarterly and Year-to-Date Key Statistics](index=5&type=section&id=Notes%20to%20Quarterly%20and%20Year-to-Date%20Key%20Statistics) This section provides detailed definitions and methodologies for key financial metrics presented in the quarterly and year-to-date statistics, including the calculation of Fully-Taxable Equivalent (FTE) basis, Return on Average Tangible Common Shareholders' Equity, Efficiency Ratio, Nonperforming Assets (NPAs), Common Equity Tier 1 (CET1) risk-based capital ratio, and Tangible Common Equity to Tangible Asset ratio - FTE basis assumes a **21% tax rate** for calculations[15](index=15&type=chunk) - Return on average tangible common shareholders' equity is calculated by adjusting net income for amortization of intangibles and dividing by average tangible common shareholders' equity[15](index=15&type=chunk) - The efficiency ratio is defined as noninterest expense (less amortization of intangibles) divided by the sum of FTE net interest income and noninterest income (excluding securities gains/losses)[15](index=15&type=chunk) [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2025, Huntington Bancshares reported a **3% increase in total assets to $210,228 million** compared to December 31, 2024, primarily driven by a **6% increase in net loans and leases** and a **37% increase in preferred stock**, while deposits also grew by **2%** Consolidated Balance Sheet Highlights (Sep 30, 2025 vs. Dec 31, 2024) | Metric (in millions) | Sep 30, 2025 | Dec 31, 2024 | % Change | | :------------------- | :----------- | :----------- | :------- | | Total assets | $210,228 | $204,230 | 3 % | | Net loans and leases | $135,582 | $127,798 | 6 % | | Total liabilities | $187,942 | $184,448 | 2 % | | Deposits | $165,212 | $162,448 | 2 % | | Preferred stock | $2,731 | $1,989 | 37 % | | Total Huntington shareholders' equity | $22,248 | $19,740 | 13 % | [Loans and Leases Composition](index=7&type=section&id=Loans%20and%20Leases%20Composition) Total loans and leases increased to **$137,956 million** as of September 30, 2025, up from **$130,042 million** at December 31, 2024, with commercial loans, particularly Commercial and Industrial, remaining the largest segment, and consumer loans, especially automobile loans, also showing growth Ending Balances by Loan Type (Sep 30, 2025 vs. Dec 31, 2024) | Loan Type (in millions) | Sep 30, 2025 | Dec 31, 2024 | % of Total (Sep 30, 2025) | | :---------------------- | :----------- | :----------- | :------------------------ | | Commercial and industrial | $62,978 | $56,809 | 45 % | | Commercial real estate | $10,732 | $11,078 | 8 % | | Lease financing | $5,515 | $5,454 | 4 % | | Total commercial | $79,225 | $73,341 | 57 % | | Residential mortgage | $24,502 | $24,242 | 18 % | | Automobile | $15,996 | $14,564 | 12 % | | Home equity | $10,314 | $10,142 | 7 % | | RV and marine | $5,805 | $5,982 | 4 % | | Other consumer | $2,114 | $1,771 | 2 % | | Total consumer | $58,731 | $56,701 | 43 % | | **Total loans and leases** | **$137,956** | **$130,042** | **100 %** | - Commercial Banking segment loans increased from **$57,858 million to $62,755 million (8.5% growth)** from Dec 31, 2024, to Sep 30, 2025[17](index=17&type=chunk) - Consumer & Regional Banking segment loans increased from **$72,051 million to $75,027 million (4.1% growth)** from Dec 31, 2024, to Sep 30, 2025[17](index=17&type=chunk) [Deposits Composition](index=8&type=section&id=Deposits%20Composition) Total deposits increased to **$165,212 million** as of September 30, 2025, up from **$162,448 million** at December 31, 2024, with money market deposits remaining the largest and growing category, while time deposits decreased and Commercial Banking deposits experienced significant growth Ending Balances by Deposit Type (Sep 30, 2025 vs. Dec 31, 2024) | Deposit Type (in millions) | Sep 30, 2025 | Dec 31, 2024 | % of Total (Sep 30, 2025) | | :------------------------- | :----------- | :----------- | :------------------------ | | Demand deposits - noninterest bearing | $28,596 | $29,345 | 17 % | | Demand deposits - interest bearing | $46,056 | $43,378 | 28 % | | Money market deposits | $62,837 | $60,730 | 38 % | | Savings deposits | $14,986 | $14,723 | 9 % | | Time deposits | $12,737 | $14,272 | 8 % | | **Total deposits** | **$165,212** | **$162,448** | **100 %** | - Commercial Banking deposits increased from **$43,366 million to $47,651 million (9.9% growth)** from Dec 31, 2024, to Sep 30, 2025[18](index=18&type=chunk) - Consumer & Regional Banking deposits decreased from **$111,390 million to $110,043 million (1.2% decrease)** from Dec 31, 2024, to Sep 30, 2025[18](index=18&type=chunk) [Consolidated Quarterly Average Balance Sheets](index=9&type=section&id=Consolidated%20Quarterly%20Average%20Balance%20Sheets) For Q3 2025, average total assets increased by **1% QoQ and 6% YoY**, reaching **$209,727 million**, with average earning assets also growing, driven by a **2% QoQ and 9% YoY increase in average loans and leases**, and average total deposits seeing a **1% QoQ and 5% YoY increase** Average Balance Sheet Highlights (Q3 2025 vs. Q2 2025 and Q3 2024) | Metric (in millions) | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change vs. 2Q25 | % Change vs. 3Q24 | | :------------------- | :----------- | :----------- | :----------- | :---------------- | :---------------- | | Average total assets | $209,727 | $207,852 | $198,278 | 1 % | 6 % | | Average earning assets | $192,732 | $191,092 | $181,891 | 1 % | 6 % | | Average loans and leases | $135,944 | $133,171 | $124,507 | 2 % | 9 % | | Average total deposits | $164,812 | $163,429 | $156,488 | 1 % | 5 % | | Average tangible common shareholders' equity | $13,587 | $12,935 | $12,069 | 5 % | 13 % | - Average commercial loans increased by **3% QoQ and 12% YoY**, while average consumer loans increased by **1% QoQ and 5% YoY**[19](index=19&type=chunk) - Average interest-bearing deposits increased by **1% QoQ and 6% YoY**, with money market deposits showing a **2% QoQ and 12% YoY increase**[19](index=19&type=chunk) [Consolidated Quarterly Net Interest Margin - Interest Income / Expense](index=10&type=section&id=Consolidated%20Quarterly%20Net%20Interest%20Margin%20-%20Interest%20Income%20%2F%20Expense) Net interest income (FTE) for Q3 2025 was **$1,523 million**, a **3% increase QoQ and 12% increase YoY**, driven by higher interest income from loans and leases, particularly commercial and industrial loans, while interest expense on deposits remained relatively stable QoQ but decreased YoY for time deposits Quarterly Interest Income / Expense (FTE, in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Total earning assets interest income | $2,617 | $2,572 | $2,568 | | Total loans and leases interest income | $2,057 | $1,977 | $1,911 | | Commercial and industrial interest income | $959 | $914 | $840 | | Total interest-bearing liabilities interest expense | $1,094 | $1,089 | $1,204 | | Total interest-bearing deposits interest expense | $830 | $822 | $945 | | Net interest income (FTE) | $1,523 | $1,483 | $1,364 | - Interest income from commercial and industrial loans increased by **$45 million QoQ (4.9%) and $119 million YoY (14.2%)**[21](index=21&type=chunk) - Interest expense on time deposits decreased by **$8 million QoQ (6.5%) and $65 million YoY (35.9%)**[21](index=21&type=chunk) [Consolidated Quarterly Net Interest Margin - Yields / Rates](index=11&type=section&id=Consolidated%20Quarterly%20Net%20Interest%20Margin%20-%20Yields%20%2F%20Rates) The net interest margin (FTE) improved to **3.13%** in Q3 2025, up from **3.11% QoQ and 2.98% YoY**, driven by a stable yield on earning assets (**5.39%**) and a decrease in the total cost of deposits (**2.00%**), leading to an increased net interest rate spread Quarterly Average Yields / Rates (FTE) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Total earning assets yield | 5.39 % | 5.40 % | 5.62 % | | Total loans and leases yield | 5.96 % | 5.91 % | 6.05 % | | Total interest-bearing liabilities rate | 2.81 % | 2.85 % | 3.32 % | | Total interest-bearing deposits rate | 2.43 % | 2.46 % | 2.94 % | | Net interest rate spread | 2.58 % | 2.55 % | 2.30 % | | Net interest margin | 3.13 % | 3.11 % | 2.98 % | | Total cost of deposits | 2.00 % | 2.02 % | 2.40 % | - The yield on commercial and industrial loans remained stable at **6.11% QoQ**, while the rate on money market deposits decreased from **3.05% to 2.99% QoQ**[23](index=23&type=chunk) - The impact of noninterest-bearing funds on margin decreased from **0.56% to 0.55% QoQ** and from **0.68% YoY**[23](index=23&type=chunk) [Selected Quarterly Income Statement Data](index=12&type=section&id=Selected%20Quarterly%20Income%20Statement%20Data) Huntington Bancshares reported a significant increase in net income applicable to common shares to **$602 million** in Q3 2025, up **18% QoQ and 25% YoY**, with total revenue (FTE) also growing by **10% QoQ and 14% YoY**, driven by strong noninterest income, particularly from net gains on sales of securities and other noninterest income Selected Quarterly Income Statement Data (in millions, except per share) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | | Net interest income | $1,506 | $1,467 | $1,351 | | Provision for credit losses | $122 | $103 | $106 | | Total noninterest income | $628 | $471 | $523 | | Net gains (losses) on sales of securities | $0 | $(58) | $0 | | Other noninterest income | $68 | $26 | $33 | | Total noninterest expense | $1,246 | $1,197 | $1,130 | | Income before income taxes | $766 | $638 | $638 | | Net income applicable to common shares | $602 | $509 | $481 | | Net income per common share - diluted | $0.41 | $0.34 | $0.33 | | Total revenue (FTE) | $2,151 | $1,954 | $1,887 | - Noninterest income increased by **$157 million QoQ (33.3%) and $105 million YoY (20.1%)**, largely due to a shift from net losses to no gains/losses on sales of securities and higher 'Other noninterest income'[25](index=25&type=chunk) - Personnel costs increased by **$35 million QoQ (4.8%) and $73 million YoY (10.7%)**[25](index=25&type=chunk) [Quarterly Mortgage Banking Noninterest Income](index=13&type=section&id=Quarterly%20Mortgage%20Banking%20Noninterest%20Income) Mortgage banking income significantly increased to **$43 million** in Q3 2025, up **54% QoQ and 13% YoY**, primarily driven by higher net origination and secondary marketing income, and a positive shift in net MSR risk management, despite a negative MSR valuation adjustment Quarterly Mortgage Banking Noninterest Income (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | | Net origination and secondary marketing income | $30 | $26 | $25 | | Net mortgage servicing income | $12 | $2 | $13 | | MSR valuation adjustment | $(1) | $0 | $(25) | | Gains (losses) due to MSR hedging | $4 | $(6) | $27 | | Mortgage banking income | $43 | $28 | $38 | | Mortgage origination volume | $2,243 | $2,412 | $1,883 | - Net origination and secondary marketing income increased by **15% QoQ and 20% YoY**[26](index=26&type=chunk) - Net MSR risk management improved significantly from **$(6) million in Q2 2025 to $3 million in Q3 2025**, and from **$2 million in Q3 2024**[26](index=26&type=chunk) [Quarterly Credit Reserves Analysis](index=14&type=section&id=Quarterly%20Credit%20Reserves%20Analysis) The Allowance for Loan and Lease Losses (ALLL) increased to **$2,374 million** at September 30, 2025, from **$2,235 million** a year prior, reflecting a provision for loan and lease losses of **$118 million** for the quarter, while the ALLL as a percentage of total loans and leases remained stable QoQ at **1.72%** but decreased from **1.77% YoY** Quarterly Credit Reserves (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | | Allowance for loan and lease losses, end of period | $2,374 | $2,331 | $2,235 | | Provision for loan and lease losses | $118 | $134 | $24 | | Net loan and lease charge-offs | $(75) | $(66) | $(93) | | Total allowance for credit losses, end of period | $2,562 | $2,515 | $2,436 | | ALLL as % of total loans and leases | 1.72 % | 1.73 % | 1.77 % | | ACL as % of total loans and leases | 1.86 % | 1.86 % | 1.93 % | - Provision for loan and lease losses decreased by **$16 million QoQ** but significantly increased by **$94 million YoY**[29](index=29&type=chunk) - The allocation of ALLL for commercial loans increased to **$1,568 million** from **$1,498 million YoY**, while consumer loans increased to **$806 million** from **$737 million YoY**[29](index=29&type=chunk) [Quarterly Net Charge-Off Analysis](index=15&type=section&id=Quarterly%20Net%20Charge-Off%20Analysis) Total net charge-offs for Q3 2025 were **$75 million**, an increase from **$66 million QoQ** but a decrease from **$93 million YoY**, with net charge-offs as a percentage of average loans and leases at **0.22%**, slightly up QoQ but down YoY, indicating improved credit quality compared to the prior year Quarterly Net Charge-Offs (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | | Total net charge-offs | $75 | $66 | $93 | | Commercial net charge-offs | $36 | $31 | $54 | | Consumer net charge-offs | $39 | $35 | $39 | | Net charge-offs as a % of average loans and leases | 0.22 % | 0.20 % | 0.30 % | - Commercial net charge-offs increased by **$5 million QoQ** but decreased by **$18 million YoY**[30](index=30&type=chunk) - Consumer net charge-offs increased by **$4 million QoQ**, remaining stable YoY[30](index=30&type=chunk) [Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)](index=16&type=section&id=Quarterly%20Nonaccrual%20Loans%20and%20Leases%20(NALs)%20and%20Nonperforming%20Assets%20(NPAs)) Total nonaccrual loans and leases (NALs) decreased to **$808 million** at September 30, 2025, from **$842 million QoQ**, but increased from **$738 million YoY**, with the NAL ratio improving to **0.59% QoQ** and the NPA ratio also improving to **0.60% QoQ**, indicating a slight improvement in asset quality Quarterly Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs) (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | | Total nonaccrual loans and leases | $808 | $842 | $738 | | Total nonperforming assets | $821 | $852 | $784 | | NALs as a % of total loans and leases | 0.59 % | 0.62 % | 0.58 % | | NPA ratio | 0.60 % | 0.63 % | 0.62 % | - New nonperforming assets decreased from **$343 million in Q2 2025 to $252 million in Q3 2025**[31](index=31&type=chunk) - Commercial and industrial NALs decreased from **$489 million to $455 million QoQ**[31](index=31&type=chunk) [Quarterly Accruing Past Due Loans and Leases](index=17&type=section&id=Quarterly%20Accruing%20Past%20Due%20Loans%20and%20Leases) Total accruing loans and leases past due 90+ days, including U.S. Government guaranteed loans, decreased to **$234 million** in Q3 2025 from **$241 million QoQ**, with the ratio of these loans to total loans and leases remaining stable at **0.17% QoQ and 0.18% YoY** Quarterly Accruing Past Due Loans and Leases (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | | Total accruing loans and leases past due 90+ days, including loans guaranteed by the U.S. Government | $234 | $241 | $224 | | Excluding loans guaranteed by the U.S. Government | $82 | $92 | $88 | | Guaranteed by U.S. Government | $152 | $149 | $136 | | Ratio (incl. guaranteed) as % of total loans and leases | 0.17 % | 0.18 % | 0.18 % | - Accruing residential mortgage loans (excluding guaranteed) past due 90+ days decreased from **$40 million to $35 million QoQ**[34](index=34&type=chunk) [Quarterly Capital Under Current Regulatory Standards (Basel III)](index=18&type=section&id=Quarterly%20Capital%20Under%20Current%20Regulatory%20Standards%20(Basel%20III)) Huntington Bancshares maintained strong capital ratios under Basel III, with the estimated Common Equity Tier 1 (CET1) risk-based capital ratio increasing to **10.6%** in Q3 2025 from **10.5% QoQ and 10.4% YoY**, and total risk-based capital also improving, reflecting a solid capital position Quarterly Regulatory Capital Ratios (Basel III) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | | Common equity tier 1 capital | $15,924 | $15,539 | $14,803 | | Common equity tier 1 risk-based capital ratio | 10.6 % | 10.5 % | 10.4 % | | Tier 1 leverage ratio | 9.0 % | 8.5 % | 8.8 % | | Total risk-based capital ratio | 14.7 % | 14.1 % | 14.1 % | | Risk-weighted assets (RWA) | $150,221 | $148,602 | $142,543 | - The impact of the CECL deferral was fully phased in for periods beginning on or after January 1, 2025[36](index=36&type=chunk) - Adjusted CET1 ratio (non-GAAP) increased to **9.2%** from **9.0% QoQ and 8.9% YoY**[35](index=35&type=chunk) [Quarterly Common Stock Summary, Non-Regulatory Capital, and Other Data](index=19&type=section&id=Quarterly%20Common%20Stock%20Summary%2C%20Non-Regulatory%20Capital%2C%20and%20Other%20Data) The company reported a tangible book value per common share of **$9.54** at September 30, 2025, an increase of **4% QoQ and 10% YoY**, with the tangible common equity to tangible asset ratio also improving to **6.8% QoQ**, and operational data showing stable employee count and branch network Quarterly Common Stock and Non-Regulatory Capital Data | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | :----------- | | Cash dividends declared per common share | $0.155 | $0.155 | $0.155 | | Tangible book value per common share | $9.54 | $9.13 | $8.65 | | Total tangible common equity | $13,919 | $13,320 | $12,566 | | Tangible common equity / tangible asset ratio | 6.8 % | 6.6 % | 6.4 % | | Return on average tangible common shareholders' equity | 17.8 % | 16.1 % | 16.2 % | - Average full-time equivalent employees remained stable at **20,247**, with **972 domestic full-service branches**[41](index=41&type=chunk) - Return on average tangible common shareholders' equity increased to **17.8%** from **16.1% QoQ and 16.2% YoY**[42](index=42&type=chunk) [Year-to-Date Financial Overview](index=4&type=section&id=Year-to-Date%20Financial%20Overview) This section presents the company's cumulative financial performance and position for the nine months ended September 30, 2025, compared to the prior year, covering key income statement, balance sheet, and credit quality trends [Year-to-Date Key Statistics](index=4&type=section&id=Year-to-Date%20Key%20Statistics) For the nine months ended September 30, 2025, Huntington Bancshares demonstrated strong year-over-year growth in net income and diluted EPS, with Net interest income and total revenue also seeing double-digit percentage increases, while the efficiency ratio improved, and credit quality metrics showed mixed trends Key Year-to-Date Financial Highlights (Nine Months Ended Sep 30, 2025 vs. 2024) | Metric (in millions, except per share) | Sep 30, 2025 | Sep 30, 2024 | Change Amount | % Change | | :------------------------------------- | :----------- | :----------- | :------------ | :------- | | Net interest income (FTE) | $4,447 | $3,989 | $458 | 11 % | | Provision for credit losses | $340 | $313 | $27 | 9 % | | Noninterest income | $1,593 | $1,481 | $112 | 8 % | | Noninterest expense | $3,595 | $3,384 | $211 | 6 % | | Income before income taxes | $2,057 | $1,734 | $323 | 19 % | | Net income applicable to common shares | $1,611 | $1,303 | $308 | 24 % | | Net income per common share - diluted | $1.09 | $0.88 | $0.21 | 24 % | | Return on average assets | 1.09 % | 0.97 % | | | | Net interest margin | 3.12 % | 3.00 % | | | | Efficiency ratio | 58.4 % | 61.2 % | | | | Average total assets | $207,572 | $194,395 | $13,177 | 7 % | | Average loans and leases | $133,344 | $123,276 | $10,068 | 8 % | | Average total deposits | $163,292 | $153,609 | $9,683 | 6 % | | NCOs as a % of average loans and leases | 0.23 % | 0.30 % | | | [Consolidated Year-to-Date Average Balance Sheets](index=21&type=section&id=Consolidated%20Year-to-Date%20Average%20Balance%20Sheets) For the nine months ended September 30, 2025, average total assets increased by **7% YoY to $207,572 million**, supported by a **7% increase in average earning assets** and an **8% increase in average loans and leases**, with average total deposits also growing by **6% YoY** Year-to-Date Average Balance Sheet Highlights (Nine Months Ended Sep 30, 2025 vs. 2024) | Metric (in millions) | Sep 30, 2025 | Sep 30, 2024 | Change Amount | % Change | | :------------------- | :----------- | :----------- | :------------ | :------- | | Average total assets | $207,572 | $194,395 | $13,177 | 7 % | | Average earning assets | $190,724 | $177,920 | $12,804 | 7 % | | Average loans and leases | $133,344 | $123,276 | $10,068 | 8 % | | Average total deposits | $163,292 | $153,609 | $9,683 | 6 % | | Average tangible common shareholders' equity | $12,970 | $11,476 | $1,494 | 13 % | - Average commercial loans increased by **10% YoY**, while average consumer loans increased by **6% YoY**[44](index=44&type=chunk) - Average interest-bearing deposits increased by **8% YoY**, with money market deposits showing a **14% YoY increase**[44](index=44&type=chunk) [Consolidated Year-to-Date Net Interest Margin - Interest Income / Expense](index=22&type=section&id=Consolidated%20Year-to-Date%20Net%20Interest%20Margin%20-%20Interest%20Income%20%2F%20Expense) Year-to-date net interest income (FTE) increased by **11% to $4,447 million** for the nine months ended September 30, 2025, compared to the same period in 2024, driven by a **3% increase in total earning assets interest income**, while total interest-bearing liabilities interest expense decreased by **6%** Year-to-Date Interest Income / Expense (FTE, in millions) | Metric | Sep 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | | Total earning assets interest income | $7,693 | $7,450 | | Total loans and leases interest income | $5,947 | $5,591 | | Commercial and industrial interest income | $2,746 | $2,470 | | Total interest-bearing liabilities interest expense | $3,246 | $3,461 | | Total interest-bearing deposits interest expense | $2,462 | $2,709 | | Net interest income (FTE) | $4,447 | $3,989 | - Interest income from commercial and industrial loans increased by **$276 million (11.2%) YoY**[46](index=46&type=chunk) - Interest expense on time deposits decreased by **$156 million (29.1%) YoY**[46](index=46&type=chunk) [Consolidated Year-to-Date Net Interest Margin - Yields / Rates](index=23&type=section&id=Consolidated%20Year-to-Date%20Net%20Interest%20Margin%20-%20Yields%20%2F%20Rates) The year-to-date net interest margin (FTE) improved to **3.12%** for the nine months ended September 30, 2025, up from **3.00%** in the prior year, driven by a higher net interest rate spread (**2.55% vs. 2.29%**) and a decrease in the total cost of deposits (**2.02% vs. 2.36%**), despite a slight decrease in the total earning assets yield Year-to-Date Average Yields / Rates (FTE) | Metric | Sep 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | | Total earning assets yield | 5.39 % | 5.59 % | | Total loans and leases yield | 5.91 % | 6.00 % | | Total interest-bearing liabilities rate | 2.84 % | 3.30 % | | Total interest-bearing deposits rate | 2.45 % | 2.91 % | | Net interest rate spread | 2.55 % | 2.29 % | | Net interest margin | 3.12 % | 3.00 % | | Total cost of deposits | 2.02 % | 2.36 % | - The yield on commercial and industrial loans decreased from **6.30% to 6.09% YoY**, while the rate on money market deposits decreased from **3.78% to 3.04% YoY**[48](index=48&type=chunk) - The impact of noninterest-bearing funds on margin decreased from **0.71% to 0.57% YoY**[48](index=48&type=chunk) [Selected Year-to-Date Income Statement Data](index=24&type=section&id=Selected%20Year-to-Date%20Income%20Statement%20Data) For the nine months ended September 30, 2025, net income applicable to common shares increased by **24% to $1,611 million YoY**, with total revenue (FTE) growing by **10% to $6,040 million**, driven by an **11% increase in net interest income** and an **8% increase in noninterest income**, despite a **$58 million net loss on sales of securities** Selected Year-to-Date Income Statement Data (in millions, except per share) | Metric | Sep 30, 2025 | Sep 30, 2024 | Change Amount | % Change | | :------------------------------------- | :----------- | :----------- | :------------ | :------- | | Net interest income | $4,399 | $3,950 | $449 | 11 % | | Provision for credit losses | $340 | $313 | $27 | 9 % | | Total noninterest income | $1,593 | $1,481 | $112 | 8 % | | Net gains (losses) on sales of securities | $(58) | $0 | $(58) | (100) % | | Total noninterest expense | $3,595 | $3,384 | $211 | 6 % | | Income before income taxes | $2,057 | $1,734 | $323 | 19 % | | Net income applicable to common shares | $1,611 | $1,303 | $308 | 24 % | | Net income per common share - diluted | $1.09 | $0.88 | $0.21 | 24 % | | Total revenue (FTE) | $6,040 | $5,470 | $570 | 10 % | - Payments and cash management revenue increased by **8% YoY**, and Capital markets and advisory fees increased by **18% YoY**[51](index=51&type=chunk) - Personnel costs increased by **8% YoY**, while deposit and other insurance expense decreased by **30% YoY**[51](index=51&type=chunk) [Year-to-Date Mortgage Banking Noninterest Income](index=25&type=section&id=Year-to-Date%20Mortgage%20Banking%20Noninterest%20Income) Year-to-date mortgage banking income increased by **3% to $102 million** for the nine months ended September 30, 2025, compared to the prior year, primarily driven by a **28% increase in net origination and secondary marketing income**, despite a decrease in total net mortgage servicing income due to MSR valuation adjustments Year-to-Date Mortgage Banking Noninterest Income (in millions) | Metric | Sep 30, 2025 | Sep 30, 2024 | Change Amount | % Change | | :------------------------------------- | :----------- | :----------- | :------------ | :------- | | Net origination and secondary marketing income | $74 | $58 | $16 | 28 % | | Total net mortgage servicing income | $27 | $40 | $(13) | (33) % | | MSR valuation adjustment | $(16) | $6 | $(22) | (367) % | | Mortgage banking income | $102 | $99 | $3 | 3 % | | Mortgage origination volume | $6,254 | $5,323 | $931 | 17 % | - Mortgage origination volume increased by **17% YoY**, with volume for sale increasing by **23% YoY**[52](index=52&type=chunk) - Mortgage servicing rights (MSR) increased by **12% to $576 million YoY**[52](index=52&type=chunk) [Year-to-Date Credit Reserves Analysis](index=26&type=section&id=Year-to-Date%20Credit%20Reserves%20Analysis) For the nine months ended September 30, 2025, the Allowance for Loan and Lease Losses (ALLL) increased to **$2,374 million** from **$2,235 million YoY**, with a provision for loan and lease losses of **$357 million**, while the ALLL as a percentage of total loans and leases decreased slightly to **1.72%** from **1.77% YoY** Year-to-Date Credit Reserves (in millions) | Metric | Sep 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | | Allowance for loan and lease losses, end of period | $2,374 | $2,235 | | Provision for loan and lease losses | $357 | $255 | | Net loan and lease charge-offs | $(227) | $(275) | | Total allowance for credit losses, end of period | $2,562 | $2,436 | | ALLL as % of total loans and leases | 1.72 % | 1.77 % | | ACL as % of total loans and leases | 1.86 % | 1.93 % | - Provision for loan and lease losses increased by **$102 million (40%) YoY**[55](index=55&type=chunk) - Net loan and lease charge-offs decreased by **$48 million (17.5%) YoY**[55](index=55&type=chunk) [Year-to-Date Net Charge-Off Analysis](index=27&type=section&id=Year-to-Date%20Net%20Charge-Off%20Analysis) Year-to-date total net charge-offs decreased to **$227 million** for the nine months ended September 30, 2025, from **$275 million** in the prior year, with net charge-offs as a percentage of average loans and leases improving to **0.23%** from **0.30% YoY**, indicating an overall improvement in credit quality Year-to-Date Net Charge-Offs (in millions) | Metric | Sep 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | | Total net charge-offs | $227 | $275 | | Commercial net charge-offs | $111 | $166 | | Consumer net charge-offs | $116 | $109 | | Net charge-offs as a % of average loans and leases | 0.23 % | 0.30 % | - Commercial net charge-offs decreased by **$55 million (33.1%) YoY**, primarily due to a significant improvement in commercial real estate charge-offs[57](index=57&type=chunk) - Consumer net charge-offs increased by **$7 million (6.4%) YoY**, mainly driven by automobile loans[57](index=57&type=chunk) [Year-to-Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs)](index=28&type=section&id=Year-to-Date%20Nonaccrual%20Loans%20and%20Leases%20(NALs)%20and%20Nonperforming%20Assets%20(NPAs)) Year-to-date total nonaccrual loans and leases (NALs) increased to **$808 million** at September 30, 2025, from **$738 million YoY**, with total nonperforming assets (NPAs) also increasing to **$821 million** from **$784 million YoY**, however, the NPA ratio remained relatively stable at **0.60%** compared to **0.62% YoY** Year-to-Date Nonaccrual Loans and Leases (NALs) and Nonperforming Assets (NPAs) (in millions) | Metric | Sep 30, 2025 | Sep 30, 2024 | | :------------------------------------- | :----------- | :----------- | | Total nonaccrual loans and leases | $808 | $738 | | Total nonperforming assets | $821 | $784 | | NALs as a % of total loans and leases | 0.59 % | 0.58 % | | NPA ratio | 0.60 % | 0.62 % | | New nonperforming assets | $845 | $833 | - Commercial and industrial NALs increased from **$408 million to $455 million YoY**[59](index=59&type=chunk) - Payments on nonperforming assets increased significantly from **$375 million to $548 million YoY**[59](index=59&type=chunk)

Consolidated Statements of Income This section details the company's financial performance, including revenues, credit losses, expenses, and net income [Total Revenues Net of Interest Expense](index=1&type=section&id=Total%20Revenues%20Net%20of%20Interest%20Expense) The company achieved $18,426 million in total revenues net of interest expense in Q3 2025, an 11% YOY increase | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | YTD'25 (million USD) | YTD'24 (million USD) | YOY % change | | :-------------------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | **Non-Interest Income** | | | | | | | | Discount Revenue | 9,413 | 8,780 | 7 | 27,517 | 26,015 | 6 | | Net Card Fees | 2,551 | 2,170 | 18 | 7,364 | 6,204 | 19 | | Service Fees and Other Income | 1,976 | 1,680 | 18 | 5,526 | 5,046 | 10 | | **Total Non-Interest Income** | **13,940** | **12,630** | **10** | **40,407** | **37,265** | **8** | | **Interest Income** | | | | | | | | Interest on Loans | 5,970 | 5,442 | 10 | 17,170 | 15,592 | 10 | | Interest and Dividends on Investment Securities | 15 | 18 | (17) | 46 | 68 | (32) | | Bank Deposits and Other | 632 | 689 | (8) | 1,800 | 2,058 | (13) | | **Total Interest Income** | **6,617** | **6,149** | **8** | **19,016** | **17,718** | **7** | | **Interest Expense** | | | | | | | | Deposits | 1,371 | 1,446 | (5) | 4,082 | 4,298 | (5) | | Long-Term Debt and Other | 760 | 697 | 9 | 2,092 | 1,915 | 9 | | **Total Interest Expense** | **2,131** | **2,143** | **(1)** | **6,174** | **6,213** | **(1)** | | **Net Interest Income** | **4,486** | **4,006** | **12** | **12,842** | **11,505** | **12** | | **Total Revenues Net of Interest Expense** | **18,426** | **16,636** | **11** | **53,249** | **48,770** | **9** | [Provisions for Credit Losses](index=1&type=section&id=Provisions%20for%20Credit%20Losses) Total provisions for credit losses in Q3 2025 were $1,287 million, a 5% year-over-year decrease | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | YTD'25 (million USD) | YTD'24 (million USD) | YOY % change | | :------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | Card Member Receivables | 190 | 170 | 12 | 562 | 592 | (5) | | Card Member Loans | 1,030 | 1,114 | (8) | 3,025 | 3,098 | (2) | | Other | 67 | 72 | (7) | 255 | 203 | 26 | | **Total Provisions for Credit Losses** | **1,287** | **1,356** | **(5)** | **3,842** | **3,893** | **(1)** | [Expenses](index=1&type=section&id=Expenses) Total expenses for Q3 2025 were $13,314 million, an increase of 10% year-over-year | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | YTD'25 (million USD) | YTD'24 (million USD) | YOY % change | | :----------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | Card Member Rewards | 4,608 | 4,168 | 11 | 13,604 | 12,169 | 12 | | Business Development | 1,611 | 1,430 | 13 | 4,729 | 4,249 | 11 | | Card Member Services | 1,477 | 1,179 | 25 | 4,106 | 3,504 | 17 | | Marketing | 1,599 | 1,470 | 9 | 4,640 | 4,426 | 5 | | Salaries and Employee Benefits | 2,239 | 2,049 | 9 | 6,511 | 6,096 | 7 | | Professional Services | 623 | 579 | 8 | 1,755 | 1,576 | 11 | | Data Processing and Equipment | 751 | 725 | 4 | 2,176 | 2,083 | 4 | | Other, Net | 406 | 476 | (15) | 1,181 | 635 | 86 | | **Total Expenses** | **13,314** | **12,076** | **10** | **38,702** | **34,738** | **11** | [Net Income and EPS](index=1&type=section&id=Net%20Income%20and%20EPS) Net income for Q3 2025 was $2,902 million, up 16% year-over-year, with diluted EPS at $4.14, up 19% | Metric | Q3'25 | Q3'24 | YOY % change | YTD'25 | YTD'24 | YOY % change | | :----------------------------------- | :------ | :------ | :----------- | :------- | :------- | :----------- | | Net Income (million USD) | $2,902 | $2,507 | 16 | $8,371 | $7,959 | 5 | | Net Income Attributable to Common Shareholders (million USD) | $2,868 | $2,474 | 16 | $8,272 | $7,856 | 5 | | Diluted EPS (USD) | $4.14 | $3.49 | 19 | $11.85 | $10.97 | 8 | | Average Common Shares Outstanding (million) | 693 | 709 | (2) | 698 | 716 | (3) | | Cash Dividends Per Share (USD) | $0.82 | $0.70 | 17 | $2.46 | $2.10 | 17 | | Effective Tax Rate | 24.1% | 21.8% | | 21.8% | 21.5% | | Consolidated Balance Sheets and Related Statistical Information This section presents the company's financial position, including assets, liabilities, and equity, along with key financial ratios [Assets](index=2&type=section&id=Assets) Total assets reached $297,550 million at the end of Q3 2025, a 10% year-over-year increase | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | | :----------------------- | :--------------- | :--------------- | :----------- | | Cash and Cash Equivalents | $54,706 | $47,918 | 14 | | Card Member Receivables, Net of Allowances | 60,823 | 58,886 | 3 | | Card Member Loans, Net of Allowances | 138,946 | 128,960 | 8 | | Card Member Loans Held for Sale | 2,424 | - | - | | Investment Securities | 1,374 | 1,268 | 8 | | Other | 39,277 | 33,947 | 16 | | **Total Assets** | **$297,550** | **$270,979** | **10** | [Liabilities and Shareholders' Equity](index=2&type=section&id=Liabilities%20and%20Shareholders%27%20Equity) Total liabilities were $265,133 million at the end of Q3 2025, a 10% year-over-year increase | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | | :------------------- | :--------------- | :--------------- | :----------- | | Customer Deposits | $149,883 | $135,438 | 11 | | Short-Term Borrowings | 1,446 | 1,457 | (1) | | Long-Term Debt | 57,787 | 53,546 | 8 | | Other | 56,017 | 50,831 | 10 | | **Total Liabilities** | **265,133** | **241,272** | **10** | | **Shareholders' Equity** | **32,417** | **29,707** | **9** | | **Total Liabilities and Shareholders' Equity** | **$297,550** | **$270,979** | **10** | [Related Statistical Information](index=2&type=section&id=Related%20Statistical%20Information) Net interest yield was 8.2% in Q3 2025, with return on average equity at 35.9% | Metric | Q3'25 | Q3'24 | YOY % change | YTD'25 | YTD'24 | | :----------------------- | :---- | :---- | :----------- | :------- | :------- | | Net Interest Yield (C) | 8.2 % | 8.0 % | | 8.1 % | 7.9 % | | Return on Average Equity (D) | 35.9 % | 33.9 % | | 35.4 % | 36.6 % | | Return on Average Common Equity (D) | 37.3 % | 35.3 % | | | | | Book Value Per Share (USD) | $44.76 | $39.92 | 12 | | | Consolidated Capital This section details the company's capital structure, including shares outstanding and risk-based capital ratios [Shares Outstanding](index=3&type=section&id=Shares%20Outstanding) Shares outstanding at the end of Q3 2025 were 689 million, a decrease primarily due to common stock repurchases | Metric | Q3'25 (million shares) | Q3'24 (million shares) | | :--------------------------- | :------------- | :------------- | | Beginning of Period | 696 | 712 | | Common Stock Repurchases | (7) | (8) | | Employee Benefit Plans and Other Net Impact | — | — | | **End of Period Shares Outstanding** | **689** | **704** | [Risk-Based Capital Ratios - Basel III](index=3&type=section&id=Risk-Based%20Capital%20Ratios%20-%20Basel%20III) The company's Common Equity Tier 1 capital ratio was 10.5% in Q3 2025, with a Tier 1 capital ratio of 11.1% and a Total capital ratio of 13.1% | Metric | Q3'25 | Q3'24 | | :----------------------------------- | :---- | :---- | | Common Equity Tier 1 Capital / Risk-Weighted Assets (RWA) | 10.5 % | 10.7 % | | Tier 1 Capital | 11.1 % | 11.4 % | | Total Capital | 13.1 % | 13.4 % | | Tier 1 Leverage Ratio | 9.5 % | 9.8 % | | Supplementary Leverage Ratio (SLR) (E) | 8.1 % | | | Common Equity Tier 1 Capital (million USD) | $26,222 | $24,648 | | Risk-Weighted Assets (RWA) (million USD) | $250,642 | $229,855 | - The company became a Category III institution in Q3 2024, thus subject to minimum Supplementary Leverage Ratio requirements starting Q4 2024[21](index=21&type=chunk) Selected Card Related Statistical Information This section provides key metrics on card network activity, billed business, and card-in-force data [Network Volumes and Billed Business](index=4&type=section&id=Network%20Volumes%20and%20Billed%20Business) Network volumes reached $479.2 billion in Q3 2025, a 9% year-over-year increase, with billed business at $421.0 billion, also up 9% | Metric | Q3'25 (billion USD) | Q3'24 (billion USD) | YOY % change | YTD'25 (billion USD) | YTD'24 (billion USD) | YOY % change | | :------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | Network Volumes (G) | $479.2 | $441.0 | 9 | $1,390.8 | $1,300.8 | 7 | | Billed Business (H) | $421.0 | $387.3 | 9 | $1,224.7 | $1,142.5 | 7 | | Billed Business Category | Q3'25 YOY % change | YTD'25 YOY % change | | :--------------------- | :----------------- | :------------------ | | U.S. Consumer Services | 9 | 8 | | Commercial Services | 4 | 3 | | International Card Services | 14 | 13 | | Goods and Services Spend | 9 | 7 | | Travel and Entertainment Spend | 8 | 6 | [Cards-in-Force and Spending](index=4&type=section&id=Cards-in-Force%20and%20Spending) Total cards-in-force reached 151.2 million at the end of Q3 2025, a 4% year-over-year increase | Metric | Q3'25 (million) | Q3'24 (million) | YOY % change | YTD'25 (million) | YTD'24 (million) | YOY % change | | :--------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total Cards-in-Force (I) | 151.2 | 145.5 | 4 | 151.2 | 145.5 | 4 | | Proprietary Cards-in-Force | 86.0 | 82.9 | 4 | 86.0 | 82.9 | 4 | | Proprietary Basic Cards-in-Force | 66.2 | 63.7 | 4 | 66.2 | 63.7 | 4 | | Average Spend Per Proprietary Basic Card Member (USD) | $6,387 | $6,110 | 5 | $18,751 | $18,224 | 3 | | Average Fee Per Card (USD) (J) | $119 | $105 | 13 | $116 | $101 | 15 | | Proprietary New Card Acquisitions (million) (K) | 3.2 | 3.3 | | 9.6 | 10.0 | | Selected Credit Related Statistical Information This section provides detailed credit performance metrics for card member loans, receivables, and other loan categories [Card Member Loans and Receivables](index=6&type=section&id=Card%20Member%20Loans%20and%20Receivables) Total card member loans increased by 8% year-over-year to $144,814 million in Q3 2025 | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | YTD'25 (million USD) | YTD'24 (million USD) | YOY % change | | :----------------------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | **Card Member Loans** | | | | | | | | Total Card Member Loans | $144,814 | $134,548 | 8 | $144,814 | $134,548 | 8 | | Provisions for Credit Losses (End of Period) | $5,868 | $5,588 | 5 | $5,868 | $5,588 | 5 | | Provisions as a % of Card Member Loans | 4.1 % | 4.2 % | | 4.1 % | 4.2 % | | | Net Write-off Rate (Principal, Interest and Fees) | 2.6 % | 2.6 % | | 2.7 % | 2.7 % | | | 30+ Days Past Due as a % of Total | 1.4 % | 1.4 % | | 1.4 % | 1.4 % | | | **Card Member Receivables** | | | | | | | | Total Card Member Receivables | $61,023 | $59,042 | 3 | $61,023 | $59,042 | 3 | | Provisions for Credit Losses (End of Period) | $200 | $156 | 28 | $200 | $156 | 28 | | Provisions as a % of Card Member Receivables | 0.3 % | 0.3 % | | 0.3 % | 0.3 % | | | Net Write-off Rate (Principal and Fees) | 1.2 % | 1.3 % | | 1.2 % | 1.4 % | | | 30+ Days Past Due as a % of Total | 1.0 % | 0.9 % | | 1.0 % | 0.9 % | | [Other Loans and Receivables](index=7&type=section&id=Other%20Loans%20and%20Receivables) Total other loans increased by 24% year-over-year to $10,518 million in Q3 2025, with provisions for credit losses up 86% | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | YTD'25 (million USD) | YTD'24 (million USD) | YOY % change | | :----------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | **Other Loans** | | | | | | | | Total Other Loans | $10,518 | $8,460 | 24 | $10,518 | $8,460 | 24 | | Provisions for Credit Losses (End of Period) | $287 | $154 | 86 | $287 | $154 | 86 | | Provisions as a % of Other Loans | 2.7 % | 1.8 % | | 2.7 % | 1.8 % | | | **Other Receivables** | | | | | | | | Total Other Receivables | $4,019 | $3,800 | 6 | $4,019 | $3,800 | 6 | | Provisions for Credit Losses (End of Period) | $20 | $49 | (59) | $20 | $49 | (59) | | Provisions as a % of Other Receivables | 0.5 % | 1.3 % | | 0.5 % | 1.3 % | | Selected Income Statement Information by Segment This section provides a breakdown of income statement performance across the company's key business segments [U.S. Consumer Services (USCS)](index=8&type=section&id=U.S.%20Consumer%20Services%20%28USCS%29) The U.S. Consumer Services segment reported $1,852 million in pre-tax income for Q3 2025, a 12% year-over-year increase | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | YTD'25 (million USD) | YTD'24 (million USD) | YOY % change | | :----------------------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | Total Revenues Net of Interest Expense | $8,856 | $7,944 | 11 | $25,658 | $23,175 | 11 | | Total Provisions for Credit Losses | 734 | 812 | (10) | 2,194 | 2,245 | (2) | | Total Expenses | 6,270 | 5,473 | 15 | 18,204 | 16,098 | 13 | | **Pre-Tax Segment Income** | **$1,852** | **$1,659** | **12** | **$5,260** | **$4,832** | **9** | | Billed Business (billion USD) | $177.5 | $162.3 | 9 | $518.3 | $480.8 | 8 | | Proprietary Cards-in-Force (million) | 47.8 | 45.7 | 5 | 47.8 | 45.7 | 5 | | Total Card Member Loans (million USD) | $94,142 | $86,752 | 9 | $94,142 | $86,752 | 9 | | Card Member Loans Net Write-off Rate (Principal, Interest and Fees) | 2.4 % | 2.6 % | | 2.7 % | 2.8 % | | | Card Member Receivables Net Write-off Rate (Principal and Fees) | 0.9 % | 1.2 % | | 0.8 % | 1.3 % | | [Commercial Services (CS)](index=8&type=section&id=Commercial%20Services%20%28CS%29) The Commercial Services segment reported $1,090 million in pre-tax income for Q3 2025, a 20% year-over-year increase | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | YTD'25 (million USD) | YTD'24 (million USD) | YOY % change | | :----------------------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | Total Revenues Net of Interest Expense | $4,281 | $3,998 | 7 | $12,528 | $11,737 | 7 | | Total Provisions for Credit Losses | 332 | 374 | (11) | 1,021 | 1,078 | (5) | | Total Expenses | 2,859 | 2,716 | 5 | 8,676 | 7,968 | 9 | | **Pre-Tax Segment Income** | **$1,090** | **$908** | **20** | **$2,831** | **$2,691** | **5** | | Billed Business (billion USD) | $136.3 | $131.0 | 4 | $401.0 | $390.4 | 3 | | Proprietary Cards-in-Force (million) | 15.4 | 15.5 | (1) | 15.4 | 15.5 | (1) | | Total Card Member Loans (million USD) | $30,691 | $29,869 | 3 | $30,691 | $29,869 | 3 | | Card Member Loans Net Write-off Rate (Principal, Interest and Fees) | 3.1 % | 2.6 % | | 3.0 % | 2.7 % | | | Card Member Receivables Net Write-off Rate (Principal and Fees) | 1.1 % | 1.3 % | | 1.2 % | 1.4 % | | [International Card Services (ICS)](index=8&type=section&id=International%20Card%20Services%20%28ICS%29) The International Card Services segment reported $441 million in pre-tax income for Q3 2025, a slight 3% year-over-year decrease | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | YTD'25 (million USD) | YTD'24 (million USD) | YOY % change | | :----------------------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | Total Revenues Net of Interest Expense | $3,336 | $2,936 | 14 | $9,504 | $8,471 | 12 | | Total Provisions for Credit Losses | 218 | 158 | 38 | 620 | 532 | 17 | | Total Expenses | 2,677 | 2,323 | 15 | 7,597 | 6,942 | 9 | | **Pre-Tax Segment Income** | **$441** | **$455** | **(3)** | **$1,287** | **$997** | **29** | | Billed Business (billion USD) | $106.9 | $93.6 | 14 | $303.6 | $269.2 | 13 | | Proprietary Cards-in-Force (million) | 22.8 | 21.7 | 5 | 22.8 | 21.7 | 5 | | Total Card Member Loans (million USD) | $19,981 | $17,927 | 11 | $19,981 | $17,927 | 11 | | Card Member Loans Net Write-off Rate (Principal, Interest and Fees) | 2.5 % | 2.4 % | | 2.4 % | 2.5 % | | | Card Member Receivables Net Write-off Rate (Principal and Fees) | 1.5 % | 1.3 % | | 1.4 % | 1.5 % | | [Global Merchant and Network Services (GMNS)](index=8&type=section&id=Global%20Merchant%20and%20Network%20Services%20%28GMNS%29) The Global Merchant and Network Services segment reported $1,040 million in pre-tax income for Q3 2025, a 5% year-over-year increase | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | YTD'25 (million USD) | YTD'24 (million USD) | YOY % change | | :----------------------------------- | :--------------- | :--------------- | :----------- | :--------------- | :--------------- | :----------- | | Total Revenues Net of Interest Expense | $1,972 | $1,847 | 7 | $5,720 | $5,590 | 2 | | Total Provisions for Credit Losses | 5 | 10 | (50) | 8 | 36 | (78) | | Total Expenses | 927 | 846 | 10 | 2,628 | 2,009 | 31 | | **Pre-Tax Segment Income** | **$1,040** | **$991** | **5** | **$3,084** | **$3,545** | **(13)** | | Total Network Volumes (billion USD) | $479.2 | $441.0 | 9 | $1,390.8 | $1,300.8 | 7 | [Corporate and Other](index=8&type=section&id=Corporate%20and%20Other) The Corporate and Other segment reported a pre-tax loss of $598 million in Q3 2025, an improvement from the $809 million loss in the prior year | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YOY % change | | :----------------------- | :--------------- | :--------------- | :----------- | | Total Revenues Net of Interest Expense | $(19)$ | $(89)$ | 79 | | Total Provisions for Credit Losses | $(2)$ | $2$ | | | Total Expenses | 581 | 718 | (19) | | **Pre-Tax Income (Loss)** | **$(598)$** | **$(809)$** | **26** | Appendix I: Components of Return on Average Equity and Return on Average Common Equity This appendix provides the detailed components and calculations for the company's Return on Average Equity and Return on Average Common Equity [ROE and ROCE Components](index=13&type=section&id=ROE%20and%20ROCE%20Components) Annualized net income for Q3 2025 was $11,608 million, resulting in a 35.9% return on average equity | Metric | Q3'25 (million USD) | Q3'24 (million USD) | YTD'25 (million USD) | YTD'24 (million USD) | | :----------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Annualized Net Income | $11,608 | $10,028 | $11,162 | $10,612 | | Average Shareholders' Equity | $32,364 | $29,623 | $31,549 | $29,017 | | **Return on Average Equity (D)** | **35.9 %** | **33.9 %** | **35.4 %** | **36.6 %** | | Annualized Net Income Attributable to Common Shareholders | $11,468 | $9,895 | | | | Average Common Shareholders' Equity | $30,780 | $28,039 | | | | **Return on Average Common Equity (D)** | **37.3 %** | **35.3 %** | | | Appendix II: Footnote References This appendix provides detailed definitions and calculation methodologies for various financial metrics and accounting principles used in the report [Footnote References](index=14&type=section&id=Footnote%20References) This section details GAAP accounting principles, reclassifications, rounding notes, and definitions for key financial metrics - Financial statements adhere to U.S. Generally Accepted Accounting Principles (GAAP), with prior period amounts reclassified for current presentation[20](index=20&type=chunk) - Detailed definitions and calculation methodologies are provided for net income attributable to common shareholders, other assets/liabilities, net interest yield, return on average equity, supplementary leverage ratio, network volumes, billed business, cards-in-force, average fee per card, new card acquisitions, foreign exchange adjustment information, net write-off rates, and days past due[21](index=21&type=chunk)