[Financial Highlights](index=3&type=section&id=Financial%20Highlights) Q3 2025 highlights show increased net income, diluted EPS, return on average assets, and nonperforming loans, with decreased total deposits Summary Income Statement (Dollars in millions, except per share data) | Metric | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | | :------------------------------------- | :------------- | :------------ | :------------- | | Net interest income | $3,629 | $3,587 | $3,507 | | Noninterest income | $1,558 | $1,400 | $1,392 | | Noninterest expense | $3,014 | $2,986 | $2,906 | | Net income available to common shareholders | $1,348 | $1,180 | $1,157 | | Earnings per share-diluted from continuing operations | $1.04 | $0.90 | $0.87 | | Revenue - taxable equivalent | $5,238 | $5,035 | $4,947 | | Return on average assets | 1.06 % | 0.93 % | 0.96 % | | Return on average common shareholders' equity | 9.0 % | 8.1 % | 8.1 % | | Net interest margin - taxable equivalent | 3.01 % | 3.02 % | 3.01 % | | Efficiency ratio-adjusted | 55.7 % | 57.1 % | 56.4 % | Key Balance Sheet Metrics (Dollars in millions) | Metric | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | | :-------------------------- | :------------- | :------------ | :------------- | | Total Assets | $543,851 | $543,833 | $535,899 | | Loans and leases | $325,663 | $319,999 | $309,752 | | Deposits | $394,907 | $406,122 | $403,736 | | Common shareholders' equity | $59,739 | $58,933 | $58,728 | | Common equity tier 1 ratio | 11.0 % | 11.0 % | 11.3 % | | Liquidity coverage ratio | 110 % | 110 % | 111 % | Credit Quality Indicators | Metric | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | | :------------------------------------------------- | :------------- | :------------ | :------------- | | Nonperforming loans and leases as % of LHFI | 0.48 % | 0.39 % | 0.48 % | | Net charge-offs as % of average LHFI | 0.48 % | 0.51 % | 0.60 % | | Allowance for loan and lease losses as % of LHFI | 1.54 % | 1.54 % | 1.58 % | | Ratio of allowance for loan and lease losses to nonperforming LHFI | 3.2x | 3.9x | 3.3x | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Q3 2025 Consolidated Statements of Income show increased interest and noninterest income, driven by investment banking, resulting in higher net income Consolidated Statements of Income (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total interest income | $6,286 | $6,154 | $5,988 | $6,179 | $6,352 | | Total interest expense | $2,657 | $2,567 | $2,481 | $2,589 | $2,750 | | Net Interest Income | $3,629 | $3,587 | $3,507 | $3,590 | $3,602 | | Provision for credit losses | $436 | $488 | $458 | $471 | $448 | | Total noninterest income | $1,558 | $1,400 | $1,392 | $1,470 | $1,483 | | Total noninterest expense | $3,014 | $2,986 | $2,906 | $3,035 | $2,927 | | Net income available to common shareholders | $1,348 | $1,180 | $1,157 | $1,216 | $1,336 | | Earnings per share-diluted | $1.04 | $0.90 | $0.87 | $0.91 | $0.99 | - **Investment banking and trading income significantly increased to $323 million** in Q3 2025 from $205 million in Q2 2025, contributing to the rise in total noninterest income[6](index=6&type=chunk) - **Personnel expense, the largest component of noninterest expense, increased to $1,726 million** in Q3 2025 from $1,653 million in Q2 2025[6](index=6&type=chunk) [Consolidated Ending Balance Sheets - Five Quarter Trend](index=6&type=section&id=Consolidated%20Ending%20Balance%20Sheets) Q3 2025 consolidated balance sheet shows stable total assets, increased loans and leases, decreased deposits, and higher shareholders' equity Consolidated Ending Balance Sheets (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total assets | $543,851 | $543,833 | $535,899 | $531,176 | $523,434 | | Total loans and leases | $325,663 | $319,999 | $309,752 | $307,771 | $304,362 | | Total deposits | $394,907 | $406,122 | $403,736 | $390,524 | $387,778 | | Total liabilities | $478,205 | $478,993 | $471,264 | $467,497 | $457,738 | | Total shareholders' equity | $65,646 | $64,840 | $64,635 | $63,679 | $65,696 | | Noninterest-bearing deposits | $106,197 | $106,442 | $108,461 | $107,451 | $105,984 | | Interest checking deposits | $109,827 | $118,122 | $118,043 | $109,042 | $109,493 | | Money market and savings deposits | $135,931 | $133,891 | $136,777 | $137,307 | $134,349 | | Time deposits | $42,952 | $47,667 | $40,455 | $36,724 | $37,952 | - **Commercial and industrial loans increased to $163,607 million** in Q3 2025 from $162,273 million in Q2 2025[7](index=7&type=chunk) - **Securities available for sale at fair value decreased to $65,522 million** in Q3 2025 from $66,390 million in Q2 2025[7](index=7&type=chunk) [Average Balances and Rates](index=7&type=section&id=Average%20Balances%20and%20Rates) This section analyzes average balances and associated yields/rates for earning assets and interest-bearing liabilities [Average Balances and Rates - Quarters](index=7&type=section&id=Average%20Balances%20and%20Rates%20-%20Quarters) This section details quarterly average balances and yields for earning assets and interest-bearing liabilities, showing increased assets and rates, with a minor decrease in net interest margin Average Balances and Rates - Quarters (Dollars in millions) | Item | Sept. 30, 2025 (Avg Balances / Yields/Rates) | June 30, 2025 (Avg Balances / Yields/Rates) | March 31, 2025 (Avg Balances / Yields/Rates) | | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Total earning assets | $486,006 / 5.18 % | $480,983 / 5.16 % | $476,214 / 5.12 % | | Total loans and leases | $322,070 / 6.00 % | $313,841 / 6.01 % | $307,528 / 5.97 % | | Total interest-bearing liabilities | $359,103 / 2.94 % | $354,251 / 2.91 % | $349,059 / 2.88 % | | Total interest-bearing deposits | $290,849 / 2.50 % | $293,797 / 2.52 % | $286,309 / 2.46 % | | Net interest income - taxable equivalent | $3,680 / 3.01 % | $3,635 / 3.02 % | $3,555 / 3.01 % | - The average interest-rate spread increased slightly to **2.24% in Q3 2025** from **2.25% in Q2 2025**[9](index=9&type=chunk) [Average Balances and Rates - Year-To-Date](index=8&type=section&id=Average%20Balances%20and%20Rates%20-%20Year-To-Date) This section compares year-to-date average balances and rates for earning assets and interest-bearing liabilities, showing increased assets and loans with decreased yields, and increased liabilities with decreased rates, resulting in a stable net interest margin Average Balances and Rates - Year-to-Date (Dollars in millions) | Item | Sept. 30, 2025 (Avg Balances / Yields/Rates) | Sept. 30, 2024 (Avg Balances / Yields/Rates) | | :------------------------------------------ | :------------------------------------------ | :------------------------------------------ | | Total earning assets | $481,104 / 5.15 % | $472,237 / 5.38 % | | Total loans and leases | $314,533 / 5.99 % | $307,186 / 6.41 % | | Total interest-bearing liabilities | $354,175 / 2.91 % | $341,517 / 3.28 % | | Total interest-bearing deposits | $290,335 / 2.49 % | $279,609 / 2.86 % | | Net interest income - taxable equivalent | $10,870 / 3.01 % | $10,662 / 3.01 % | - The year-to-date average interest-rate spread for Sept. 30, 2025, was **2.24%**, an increase from **2.10%** for Sept. 30, 2024[11](index=11&type=chunk) [Credit Quality](index=9&type=section&id=Credit%20Quality) This section overviews credit quality, detailing trends in nonperforming assets, past due loans, asset quality ratios, and the allowance for credit losses [Nonperforming Assets](index=9&type=section&id=Nonperforming%20Assets) This section outlines the trend in nonperforming assets, showing a Q3 2025 increase driven by a significant rise in nonaccrual commercial and industrial loans Nonperforming Assets (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total nonaccrual loans and leases | $1,571 | $1,263 | $1,565 | $1,429 | $1,472 | | Commercial and industrial nonaccrual loans | $800 | $520 | $586 | $521 | $575 | | Total nonperforming assets | $1,629 | $1,316 | $1,618 | $1,477 | $1,528 | [Loans 90 Days or More Past Due and Still Accruing](index=9&type=section&id=Loans%2090%20Days%20or%20More%20Past%20Due%20and%20Still%20Accruing) This section details loans significantly past due but still accruing interest, showing a Q3 2025 increase driven by government-guaranteed residential mortgage loans Loans 90 Days or More Past Due and Still Accruing (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total loans 90 days past due and still accruing | $584 | $546 | $616 | $587 | $518 | | Residential mortgage - government guaranteed | $438 | $424 | $468 | $430 | $394 | [Loans 30-89 Days Past Due](index=9&type=section&id=Loans%2030-89%20Days%20Past%20Due) This section presents data on early-stage delinquencies (30-89 days past due loans), showing a Q3 2025 decrease in total loans but an increase in indirect auto loans Loans 30-89 Days Past Due (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total loans 30-89 days past due | $1,743 | $1,811 | $1,619 | $1,949 | $1,769 | | Indirect auto loans 30-89 days past due | $620 | $582 | $484 | $622 | $596 | | Residential mortgage - nonguaranteed 30-89 days past due | $344 | $365 | $347 | $401 | $366 | [Asset Quality Ratios](index=10&type=section&id=Asset%20Quality%20Ratios) This section presents key asset quality ratios, indicating stable nonperforming loans, decreased net charge-offs, and a reduced coverage ratio of allowance for loan losses to nonperforming loans Asset Quality Ratios | Ratio | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------------- | :------------- | :------------ | :------------- | :------------ | :------------- | | Loans 30-89 days past due and still accruing as a % of loans and leases | 0.54 % | 0.57 % | 0.52 % | 0.64 % | 0.58 % | | Nonperforming loans and leases as a % of loans and leases | 0.48 % | 0.39 % | 0.48 % | 0.47 % | 0.48 % | | Net charge-offs as a % of average loans and leases | 0.48 % | 0.51 % | 0.60 % | 0.59 % | 0.55 % | | Allowance for loan and lease losses as a % of loans and leases | 1.54 % | 1.54 % | 1.58 % | 1.59 % | 1.60 % | | Ratio of allowance for loan and lease losses to nonperforming loans and leases | 3.2X | 3.9X | 3.3X | 3.4X | 3.3X | Asset Quality Ratios (Year-to-Date) | Ratio | Period Ended Sept. 30, 2025 | Period Ended Sept. 30, 2024 | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Net charge-offs as a % of average loans and leases | 0.53 % | 0.59 % | | Ratio of allowance for loan and lease losses to net charge-offs | 3.0X | 2.7X | [Allowance for Credit Losses](index=11&type=section&id=Allowance%20for%20Credit%20Losses) This section details the allowance for credit losses, showing an increased Q3 2025 ending balance, with decreased provision for credit losses and total net charge-offs, particularly in commercial and industrial, and credit card categories Allowance for Credit Losses (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Beginning balance | $5,253 | $5,166 | $5,161 | $5,140 | $5,110 | | Provision for credit losses | $436 | $488 | $458 | $471 | $448 | | Total charge-offs | $(480) | $(506) | $(557) | $(553) | $(528) | | Total recoveries | $95 | $110 | $103 | $100 | $110 | | Net charge-offs | $(385) | $(396) | $(454) | $(453) | $(418) | | Ending balance | $5,305 | $5,253 | $5,166 | $5,161 | $5,140 | | Allowance for loan and lease losses | $4,988 | $4,899 | $4,870 | $4,857 | $4,842 | | Reserve for unfunded lending commitments (RUFC) | $317 | $354 | $296 | $304 | $298 | Net Charge-offs as a Percentage of Average Loans and Leases | Category | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :-------------------------- | :------------- | :------------ | :------------- | :------------ | :------------- | | Commercial and industrial | 0.19 % | 0.22 % | 0.20 % | 0.27 % | 0.18 % | | CRE | 0.44 % | 0.71 % | 1.29 % | 0.66 % | 1.12 % | | Indirect auto | 1.99 % | 1.63 % | 2.26 % | 2.33 % | 1.89 % | | Credit card | 3.13 % | 4.84 % | 5.21 % | 5.10 % | 5.04 % | | Total loans and leases | 0.48 % | 0.51 % | 0.60 % | 0.59 % | 0.55 % | [Segment Financial Performance - Preliminary](index=12&type=section&id=Segment%20Financial%20Performance) This section overviews preliminary financial performance across Consumer and Small Business Banking, Wholesale Banking, and Other, Treasury & Corporate segments [Consumer and Small Business Banking](index=12&type=section&id=Consumer%20and%20Small%20Business%20Banking) The Consumer and Small Business Banking segment reported increased Q3 2025 net income, driven by growth in net interest and noninterest income, despite higher allocated provision for credit losses Consumer and Small Business Banking Performance (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Segment net interest income (expense) | $2,452 | $2,358 | $2,284 | $2,495 | $2,530 | | Noninterest income | $530 | $519 | $503 | $535 | $506 | | Allocated provision for credit losses | $400 | $384 | $328 | $347 | $353 | | Total noninterest expense | $1,704 | $1,699 | $1,663 | $1,741 | $1,663 | | Segment net income (loss) | $663 | $601 | $602 | $715 | $776 | [Wholesale Banking](index=12&type=section&id=Wholesale%20Banking) The Wholesale Banking segment showed strong Q3 2025 performance with substantially increased net income, driven by a significant rise in noninterest income and a notable decrease in allocated provision for credit losses, while net interest income remained stable Wholesale Banking Performance (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Segment net interest income (expense) | $1,669 | $1,664 | $1,596 | $1,601 | $1,589 | | Noninterest income | $1,143 | $943 | $948 | $1,038 | $1,047 | | Allocated provision for credit losses | $36 | $104 | $131 | $123 | $96 | | Total noninterest expense | $1,319 | $1,334 | $1,308 | $1,303 | $1,240 | | Segment net income (loss) | $1,150 | $933 | $884 | $973 | $1,040 | [Other, Treasury & Corporate](index=12&type=section&id=Other%2C%20Treasury%20%26%20Corporate) The Other, Treasury & Corporate segment reported an increased Q3 2025 net loss, primarily due to higher negative net interest income and larger negative noninterest income Other, Treasury & Corporate Performance (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Segment net interest income (expense) | $(492) | $(435) | $(373) | $(506) | $(517) | | Noninterest income | $(115) | $(62) | $(59) | $(103) | $(70) | | Total noninterest expense | $(9) | $(47) | $(65) | $(9) | $24 | | Segment net income (loss) | $(361) | $(294) | $(225) | $(399) | $(377) | [Total Truist Financial Corporation](index=12&type=section&id=Total%20Truist%20Financial%20Corporation) This section summarizes Truist Financial Corporation's consolidated performance, showing increased Q3 2025 net income from continuing operations, driven by growth in net interest and noninterest income, despite higher total noninterest expense Total Truist Financial Corporation Performance (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Net interest income (expense) | $3,629 | $3,587 | $3,507 | $3,590 | $3,602 | | Noninterest income | $1,558 | $1,400 | $1,392 | $1,470 | $1,483 | | Provision for credit losses | $436 | $488 | $458 | $471 | $448 | | Total noninterest expense | $3,014 | $2,986 | $2,906 | $3,035 | $2,927 | | Net Income from continuing operations | $1,452 | $1,240 | $1,261 | $1,289 | $1,439 | [Capital Information - Five Quarter Trend](index=13&type=section&id=Capital%20Information) This section analyzes five-quarter trends in key capital metrics, including capital ratios, risk-weighted assets, and tangible common equity [Selected Capital Information](index=13&type=section&id=Selected%20Capital%20Information) This section presents key capital adequacy metrics, showing stable Common Equity Tier 1 and Leverage ratios in Q3 2025, alongside increased risk-weighted assets and common equity per share Selected Capital Information (Dollars in millions, except per share data) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Common equity tier 1 | $48,031 | $47,678 | $47,767 | $48,225 | $48,076 | | Total risk-weighted assets | $438,467 | $434,609 | $424,059 | $418,337 | $414,828 | | Common equity tier 1 ratio | 11.0 % | 11.0 % | 11.3 % | 11.5 % | 11.6 % | | Leverage capital ratio | 10.2 % | 10.2 % | 10.3 % | 10.5 % | 10.8 % | | Common equity per common share | $46.70 | $45.70 | $44.85 | $43.90 | $44.46 | [Calculations of Tangible Common Equity and Related Measures](index=13&type=section&id=Calculations%20of%20Tangible%20Common%20Equity%20and%20Related%20Measures) This section details tangible common equity (non-GAAP) and related ratios, showing increased tangible common equity and per share amounts in Q3 2025, while its percentage of tangible assets remained stable Tangible Common Equity and Related Measures (Dollars in millions, except per share data) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total shareholders' equity | $65,646 | $64,840 | $64,635 | $63,679 | $65,696 | | Intangible assets, net of deferred taxes | $18,076 | $18,143 | $18,203 | $18,274 | $18,350 | | Tangible common equity | $41,663 | $40,790 | $40,525 | $39,498 | $40,673 | | Tangible common equity per common share | $32.57 | $31.63 | $30.95 | $30.01 | $30.64 | | Tangible assets | $525,775 | $525,690 | $517,696 | $512,902 | $505,084 | | Tangible common equity as a percentage of tangible assets | 7.9 % | 7.8 % | 7.8 % | 7.7 % | 8.1 % | [Selected Mortgage Banking Information & Additional Information](index=14&type=section&id=Selected%20Mortgage%20Banking%20Information%20%26%20Additional%20Information) This section provides selected mortgage banking data, including income components and servicing portfolio details, alongside additional operational information [Mortgage Banking Income](index=14&type=section&id=Mortgage%20Banking%20Income) This section details mortgage banking income components, showing an overall Q3 2025 increase, driven by growth in residential and commercial mortgage income, primarily from improved production revenue and MSR valuation Mortgage Banking Income (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Total residential mortgage income | $105 | $98 | $102 | $103 | $98 | | Residential mortgage production revenue | $22 | $25 | $19 | $25 | $25 | | Net MSRs valuation (residential) | $9 | $1 | $(4) | $(5) | $(7) | | Total commercial mortgage income | $13 | $9 | $6 | $14 | $8 | | Commercial mortgage production revenue | $10 | $6 | $2 | $12 | $6 | | Total mortgage banking income | $118 | $107 | $108 | $117 | $106 | [Other Mortgage Banking Information](index=14&type=section&id=Other%20Mortgage%20Banking%20Information) This section provides supplementary mortgage banking data, indicating decreased residential mortgage loan originations but an increased total mortgage servicing portfolio in Q3 2025 Other Mortgage Banking Information (Dollars in millions) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Residential mortgage loan originations | $4,743 | $5,855 | $3,626 | $4,745 | $3,726 | | Total servicing portfolio | $279,670 | $270,750 | $271,268 | $273,412 | $275,424 | | Loans serviced for others | $221,274 | $213,002 | $216,148 | $218,475 | $221,143 | | Bank-owned loans serviced | $58,396 | $57,748 | $55,120 | $54,937 | $54,281 | [Additional Information](index=14&type=section&id=Additional%20Information) This section provides supplementary operational and financial data, indicating decreased brokered deposits and ATMs, stable banking offices, and increased FTEs in Q3 2025 Additional Information (Dollars in millions, except per share data) | Item | Sept. 30, 2025 | June 30, 2025 | March 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | | :------------------------------------------ | :------------- | :------------ | :------------- | :------------ | :------------- | | Brokered deposits | $28,423 | $30,008 | $27,585 | $28,085 | $27,671 | | Common stock prices (End of period) | $45.72 | $42.99 | $41.15 | $43.38 | $42.77 | | Banking offices | 1,927 | 1,927 | 1,928 | 1,928 | 1,930 | | ATMs | 2,837 | 2,847 | 2,861 | 2,901 | 2,928 | | FTEs | 38,534 | 37,996 | 37,529 | 37,661 | 37,867 | [Selected Items](index=15&type=section&id=Selected%20Items) This section outlines the financial impact of selected items on pre-tax income, after-tax income, and diluted EPS, highlighting recurring restructuring charges and significant gains/losses from prior asset sales Selected Items Impact (Dollars in millions, except per share data) | Description | Quarter Ended | Pre-Tax | After-Tax at Marginal Rate | Impact to Diluted EPS | | :------------------------------------------ | :------------ | :------ | :------------------------- | :-------------------- | | Restructuring charges | Sept. 30, 2025 | $(27) | $(21) | $(0.02) | | Restructuring charges | June 30, 2025 | $(28) | $(21) | $(0.02) | | Loss on sale of securities | June 30, 2025 | $(18) | $(13) | $(0.01) | | Restructuring charges | March 31, 2025 | $(38) | $(29) | $(0.02) | | Gain on sale of TIH | Sept. 30, 2024 | $36 | $16 | $0.01 | | Gain on sale of TIH | June 30, 2024 | $6,903 | $4,814 | $3.60 | | Loss on sale of securities | June 30, 2024 | $(6,650) | $(5,089) | $(3.80) |

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

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

[Executive Summary & Key Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Highlights) This section provides an initial overview of Fifth Third Bancorp's strong Q3 2025 performance, highlighting diluted EPS growth, positive operating leverage, and strategic financial management across net interest income, noninterest income, and expense control [Key Financial Data & Highlights](index=1&type=section&id=Key%20Financial%20Data%20%26%20Highlights) Fifth Third Bancorp reported Q3 2025 diluted EPS of $0.91, driven by strong revenue growth and expense discipline, marking the 4th consecutive quarter of positive operating leverage Key Financial Data (3Q25 vs. Prior Periods) | Metric | 3Q25 | 2Q25 | 3Q24 | | :----------------------------------- | :----- | :----- | :----- | | Net income available to common shareholders ($M) | $608 | $591 | $532 | | Net interest income (FTE) ($M) | $1,525 | $1,500 | $1,427 | | Noninterest income ($M) | $781 | $750 | $711 | | Noninterest expense ($M) | $1,267 | $1,264 | $1,244 | | Earnings per share, diluted | $0.91 | $0.88 | $0.78 | | Tangible book value per share | $21.66 | $20.98 | $20.20 | | Net interest margin (FTE) | 3.13% | 3.12% | 2.90% | | Efficiency (FTE) | 54.9% | 56.2% | 58.2% | | Average portfolio loans and leases ($M) | $123,326 | $123,071 | $116,826 | | Average deposits ($M) | $164,754 | $163,575 | $167,196 | | Net charge-off ratio | 1.09% | 0.45% | 0.48% | | Nonperforming asset ratio | 0.65% | 0.72% | 0.62% | | Return on average assets | 1.21% | 1.20% | 1.06% | | CET1 capital | 10.54% | 10.58% | 10.75% | * Adjusted Pre-Provision Net Revenue (PPNR) increased **6% sequentially** and **11% year-over-year**, marking the highest annual growth rate in over two years[3](index=3&type=chunk) * The company repurchased **$300 million of shares** in the quarter and achieved a **7% increase in tangible book value per share** over the past year[3](index=3&type=chunk) [Income Statement Highlights](index=2&type=section&id=Income%20Statement%20Highlights) Net income available to common shareholders increased 3% sequentially and 14% YoY to $608 million, with diluted EPS rising 3% sequentially and 17% YoY to $0.91 Condensed Statements of Income (3Q25 vs. Prior Periods) | Metric ($ in millions, except per share data) | September 2025 | June 2025 | September 2024 | Seq Change (%) | Yr/Yr Change (%) | | :------------------------------------------ | :--------------- | :-------- | :--------------- | :------------- | :--------------- | | Net interest income (NII) | $1,525 | $1,500 | $1,427 | 2% | 7% | | Provision for credit losses | 197 | 173 | 160 | 14% | 23% | | Noninterest income | 781 | 750 | 711 | 4% | 10% | | Noninterest expense | 1,267 | 1,264 | 1,244 | — | 2% | | Net income available to common shareholders | $608 | $591 | $532 | 3% | 14% | | Earnings per share, diluted | $0.91 | $0.88 | $0.78 | 3% | 17% | Diluted Earnings Per Share Impact of Certain Items - 3Q25 | Item (after-tax impact; $ in millions, except per share data) | Impact | | :---------------------------------------------------------- | :----- | | Interchange litigation matters | $(21) | | FDIC special assessment (noninterest expense) | 5 | | After-tax impact of certain item(s) | $(16) | | Diluted earnings per share impact of certain item(s) | $(0.02) | [Net Interest Income](index=3&type=section&id=Net%20Interest%20Income) Fully-taxable equivalent (FTE) Net Interest Income (NII) increased 2% sequentially to $1.525 billion and 7% YoY, driven by improved earning asset mix, fixed-rate asset repricing, and strategic management actions Net Interest Income (FTE) Analysis | Metric (FTE; $ in millions) | September 2025 | June 2025 | September 2024 | Seq Change (%) | Yr/Yr Change (%) | | :-------------------------- | :--------------- | :-------- | :--------------- | :------------- | :--------------- | | Net interest income (NII) | $1,525 | $1,500 | $1,427 | 2% | 7% | | Yield on interest-earning assets | 5.18% | 5.18% | 5.43% | — | (25) bps | | Rate paid on interest-bearing liabilities | 2.77% | 2.78% | 3.38% | (1) bps | (61) bps | | Net interest rate spread | 2.41% | 2.40% | 2.05% | 1 bp | 36 bps | | Net interest margin (NIM) | 3.13% | 3.12% | 2.90% | 1 bp | 23 bps | * The improvement in NII and NIM was primarily due to improved earning asset mix, fixed-rate asset repricing, and strategic management actions decreasing the cost of interest-bearing liabilities[7](index=7&type=chunk)[8](index=8&type=chunk) [Noninterest Income](index=4&type=section&id=Noninterest%20Income) Total noninterest income increased 4% sequentially to $781 million and 10% YoY, primarily driven by strong growth in capital markets fees and wealth and asset management revenue Noninterest Income (3Q25 vs. Prior Periods) | Noninterest Income ($ in millions) | September 2025 | June 2025 | September 2024 | Seq Change (%) | Yr/Yr Change (%) | | :-------------------------------- | :--------------- | :-------- | :--------------- | :------------- | :--------------- | | Wealth and asset management revenue | $181 | $166 | $163 | 9% | 11% | | Commercial payments revenue | 157 | 152 | 154 | 3% | 2% | | Consumer banking revenue | 144 | 147 | 143 | (2)% | 1% | | Capital markets fees | 115 | 90 | 111 | 28% | 4% | | Commercial banking revenue | 87 | 79 | 93 | 10% | (6)% | | Mortgage banking net revenue | 58 | 56 | 50 | 4% | 16% | | Total noninterest income | $781 | $750 | $711 | 4% | 10% | Noninterest Income Excluding Certain Items | Noninterest Income ($ in millions) | September 2025 | June 2025 | September 2024 | Seq Change (%) | Yr/Yr Change (%) | | :-------------------------------- | :--------------- | :-------- | :--------------- | :------------- | :--------------- | | Noninterest income (U.S. GAAP) | $781 | $750 | $711 | | | | Interchange litigation matters | 18 | 1 | 47 | | | | Securities (gains) losses, net | (10) | (16) | (10) | | | | Noninterest income excluding certain items (a) | $789 | $735 | $748 | 7% | 5% | * Capital markets fees saw a strong rebound, increasing **28% sequentially**, driven by loan syndications and M&A advisory revenue[11](index=11&type=chunk) [Noninterest Expense](index=5&type=section&id=Noninterest%20Expense) Total noninterest expense remained stable sequentially at $1.267 billion and increased 2% YoY, primarily due to increases in equipment, occupancy, marketing, and technology expenses Noninterest Expense (3Q25 vs. Prior Periods) | Noninterest Expense ($ in millions) | September 2025 | June 2025 | September 2024 | Seq Change (%) | Yr/Yr Change (%) | | :-------------------------------- | :--------------- | :-------- | :--------------- | :------------- | :--------------- | | Compensation and benefits | $685 | $698 | $690 | (2)% | (1)% | | Technology and communications | 128 | 126 | 121 | 2% | 6% | | Net occupancy expense | 89 | 83 | 81 | 7% | 10% | | Equipment expense | 44 | 41 | 38 | 7% | 16% | | Loan and lease expense | 39 | 36 | 34 | 8% | 15% | | Marketing expense | 34 | 43 | 26 | (21)% | 31% | | Total noninterest expense | $1,267 | $1,264 | $1,244 | — | 2% | Noninterest Expense Excluding Certain Items | Noninterest Expense ($ in millions) | September 2025 | June 2025 | September 2024 | Seq Change (%) | Yr/Yr Change (%) | | :-------------------------------- | :--------------- | :-------- | :--------------- | :------------- | :--------------- | | Noninterest expense (U.S. GAAP) | $1,267 | $1,264 | $1,244 | | | | Interchange litigation matters | (9) | — | (10) | | | | Severance expense | — | (15) | (9) | | | | FDIC special assessment | 6 | — | — | | | | Noninterest expense excluding certain item(s) (a) | $1,264 | $1,249 | $1,225 | 1% | 3% | | Non-qualified deferred compensation (expense)/benefit | (11) | (16) | (10) | | | | Noninterest expense excluding certain item(s) and non-qualified (a) deferred compensation | $1,253 | $1,233 | $1,215 | 2% | 3% | [Balance Sheet & Credit Quality Overview](index=6&type=section&id=Balance%20Sheet%20%26%20Credit%20Quality%20Overview) This section details Fifth Third Bancorp's asset and liability structure, including loan and deposit trends, wholesale funding, and an in-depth analysis of credit quality metrics and capital position [Average Interest-Earning Assets](index=6&type=section&id=Average%20Interest-Earning%20Assets) Total average portfolio loans and leases remained stable sequentially at $123 billion and increased 6% YoY, with commercial loans decreasing and consumer loans increasing Average Portfolio Loans and Leases ($ in millions) | Category | September 2025 | June 2025 | September 2024 | Seq Change (%) | Yr/Yr Change (%) | | :----------------------------- | :--------------- | :-------- | :--------------- | :------------- | :--------------- | | Total commercial loans and leases | $74,915 | $75,415 | $71,769 | (1)% | 4% | | Total consumer loans | $48,411 | $47,656 | $45,057 | 2% | 7% | | Total average portfolio loans and leases | $123,326 | $123,071 | $116,826 | — | 6% | * Average commercial portfolio loans and leases decreased **1% sequentially** due to declines in commercial mortgage and commercial construction loans, partially offset by increases in C&I middle market loans[17](index=17&type=chunk) * Average consumer portfolio loans increased **2% sequentially**, driven by continued strong growth in indirect secured consumer and home equity loans[17](index=17&type=chunk) [End of Period Interest-Earning Assets](index=7&type=section&id=End%20of%20Period%20Interest-Earning%20Assets) Total period-end portfolio loans and leases increased 1% sequentially to $123.13 billion and 6% YoY, with commercial loans stable and consumer loans increasing End of Period Portfolio Loans and Leases ($ in millions) | Category | September 2025 | June 2025 | September 2024 | Seq Change (%) | Yr/Yr Change (%) | | :----------------------------- | :--------------- | :-------- | :--------------- | :------------- | :--------------- | | Total commercial loans and leases | $74,423 | $74,152 | $71,130 | — | 5% | | Total consumer loans | $48,707 | $48,244 | $45,538 | 1% | 7% | | Total portfolio loans and leases | $123,130 | $122,396 | $116,668 | 1% | 6% | * Period-end consumer portfolio loans increased **1% sequentially**, primarily reflecting increases in indirect secured consumer and home equity loans[21](index=21&type=chunk) * Total period-end securities decreased **4% sequentially** and **7% YoY**[22](index=22&type=chunk) [Average Deposits](index=7&type=section&id=Average%20Deposits) Total average deposits increased 1% sequentially to $165 billion, driven by money market and demand deposits, partially offset by declines in savings and interest checking Average Deposits ($ in millions) | Category | September 2025 | June 2025 | September 2024 | Seq Change (%) | Yr/Yr Change (%) | | :----------------------- | :--------------- | :-------- | :--------------- | :------------- | :--------------- | | Demand | $41,235 | $40,885 | $40,020 | 1% | 3% | | Interest checking | 56,624 | 56,738 | 58,605 | — | (3)% | | Savings | 16,376 | 16,962 | 17,272 | (3)% | (5)% | | Money market | 37,434 | 36,296 | 37,257 | 3% | — | | Total average deposits | $164,754 | $163,575 | $167,196 | 1% | (1)% | * The growth in demand deposits reflects a strategic focus on enhancing the deposit mix and represents the **second consecutive quarter of demand deposit growth**[23](index=23&type=chunk) * The period-end portfolio loan-to-core deposit ratio was **75%** in the current quarter, compared to 76% in the prior quarter and 71% in the year-ago quarter[24](index=24&type=chunk) [Average Wholesale Funding](index=8&type=section&id=Average%20Wholesale%20Funding) Total average wholesale funding decreased 3% sequentially to $22 billion and 7% YoY, primarily due to reductions in long-term debt and CDs over $250,000 Average Wholesale Funding ($ in millions) | Category | September 2025 | June 2025 | September 2024 | Seq Change (%) | Yr/Yr Change (%) | | :------------------------------------ | :--------------- | :-------- | :--------------- | :------------- | :--------------- | | CDs over $250,000 | $2,244 | $2,200 | $3,499 | 2% | (36)% | | FHLB advances | 4,920 | 4,976 | 2,576 | (1)% | 91% | | Long-term debt | 14,001 | 14,599 | 16,716 | (4)% | (16)% | | Total average wholesale funding | $21,821 | $22,423 | $23,415 | (3)% | (7)% | * The decrease in average wholesale funding was primarily attributable to a reduction in long-term debt and CDs over $250,000, inclusive of brokered deposits[25](index=25&type=chunk) [Credit Quality Summary](index=9&type=section&id=Credit%20Quality%20Summary) Provision for credit losses totaled $197 million, with the Allowance for Credit Losses (ACL) ratio decreasing to 1.96%, while net charge-offs significantly increased due to a commercial credit impairment Credit Quality Summary ($ in millions) | Metric | September 2025 | June 2025 | September 2024 | | :------------------------------------------------- | :--------------- | :-------- | :--------------- | | Total nonaccrual portfolio loans and leases (NPLs) | $768 | $853 | $686 | | Total nonperforming portfolio loans and leases and OREO (NPAs) | $801 | $886 | $725 | | NPL ratio | 0.62% | 0.70% | 0.59% | | NPA ratio | 0.65% | 0.72% | 0.62% | | Provision for loan and lease losses | 192 | 167 | 159 | | Total net losses charged-off | $(339) | $(139) | $(142) | | Net charge-off ratio (NCO ratio) | 1.09% | 0.45% | 0.48% | | Commercial NCO ratio | 1.46% | 0.38% | 0.40% | | Consumer NCO ratio | 0.52% | 0.56% | 0.62% | | ACL as a % of portfolio loans and leases | 1.96% | 2.09% | 2.09% | | ACL as a % of nonperforming portfolio loans and leases | 314% | 300% | 356% | * Net charge-offs in Q3 2025 included **$178 million** related to the impairment of an asset-backed finance commercial credit[27](index=27&type=chunk) * Nonperforming portfolio loans and leases decreased to **$768 million (0.62% NPL ratio)** from $853 million (0.70% NPL ratio) in the prior quarter[30](index=30&type=chunk) [Capital Position](index=11&type=section&id=Capital%20Position) The CET1 capital ratio decreased 4 bps sequentially to 10.54% due to risk-weighted asset growth and capital returns, while Fifth Third repurchased $300 million of common stock and increased its quarterly common dividend Regulatory Capital Ratios (Bancorp) | Metric | September 2025 | June 2025 | September 2024 | | :-------------------- | :--------------- | :-------- | :--------------- | | CET1 capital | 10.54% | 10.58% | 10.75% | | Tier 1 risk-based capital | 11.60% | 11.85% | 12.07% | | Total risk-based capital | 13.51% | 13.77% | 14.13% | | Leverage | 9.24% | 9.42% | 9.11% | * Fifth Third repurchased **$300 million of its common stock** during the third quarter of 2025[31](index=31&type=chunk) * The quarterly cash common dividend was increased by **$0.03, or 8%, to $0.40 per share** for Q3 2025[31](index=31&type=chunk) [Other Financial Information](index=12&type=section&id=Other%20Financial%20Information) This section covers supplementary financial details such as the effective tax rate, corporate profile, forward-looking statements, and explanations of non-GAAP measures used in the report [Tax Rate](index=12&type=section&id=Tax%20Rate) The effective tax rate for Q3 2025 was 22.6%, an increase from 22.2% in the prior quarter and 21.3% in the year-ago quarter Effective Tax Rate | Period | Effective Tax Rate | | :----- | :----------------- | | 3Q25 | 22.6% | | 2Q25 | 22.2% | | 3Q24 | 21.3% | [Corporate Profile & Conference Call](index=12&type=section&id=Corporate%20Profile%20%26%20Conference%20Call) Fifth Third Bancorp, founded in 1858, is a bank recognized for innovation and ethical practices, aiming to be a high-performing and trusted regional bank * Fifth Third is a bank founded in **1858**, known for innovation and helping individuals, families, businesses, and communities grow[34](index=34&type=chunk) * The company has been named among Ethisphere's **World's Most Ethical Companies®** for several years[34](index=34&type=chunk) * A conference call to discuss financial results will be webcast live at **9:00 a.m. (Eastern Time)** via the Fifth Third Investor Relations website (www.53.com)[33](index=33&type=chunk) [Forward-Looking Statements](index=13&type=section&id=Forward-Looking%20Statements) This release contains forward-looking statements subject to various risks and uncertainties, including deteriorating credit quality, regulatory changes, economic conditions, cybersecurity risks, and potential impacts of the pending merger with Comerica Incorporated * Statements in this release are forward-looking and subject to risks and uncertainties, not statements of historical fact[37](index=37&type=chunk) * Key risk factors include deteriorating credit quality, loan concentration, problems encountered by other financial institutions, inadequate funding or liquidity, adverse government regulation, changes in interest rates, and litigation[38](index=38&type=chunk) * The company disclaims any obligation to publicly update or revise forward-looking statements, except as required by law[39](index=39&type=chunk) [Earnings Release End Notes](index=12&type=section&id=Earnings%20Release%20End%20Notes) This section provides definitions and clarifications for various financial measures and ratios used in the earnings release, including non-GAAP measures, annualized ratios, and regulatory capital calculation methods * Non-GAAP measures are used and reconciled on **page 27**[36](index=36&type=chunk) * Net losses charged-off are presented as a percent of average portfolio loans and leases on an **annualized basis**[36](index=36&type=chunk) * Regulatory capital ratios for prior periods were calculated using a five-year transition provision option for CECL effects, and current period ratios are estimated[36](index=36&type=chunk) [Quarterly Financial Review (Detailed Tables)](index=14&type=section&id=Quarterly%20Financial%20Review%20(Detailed%20Tables)) This section presents the comprehensive financial statements and detailed breakdowns of key financial data, including income statements, balance sheets, equity changes, average balances, loans, regulatory capital, credit loss experience, asset quality, non-GAAP reconciliations, and segment performance for the quarter ended September 30, 2025 [Financial Highlights](index=15&type=section&id=Financial%20Highlights) This section provides a comprehensive overview of Fifth Third Bancorp's key financial performance indicators and ratios for the three months ended September 30, 2025, and year-to-date, with comparative data for prior periods Key Financial Highlights (3Q25 vs. Prior Periods) | Metric | September 2025 | June 2025 | September 2024 | Seq Change (%) | Yr/Yr Change (%) | | :------------------------------------------------- | :--------------- | :-------- | :--------------- | :------------- | :--------------- | | Net income available to common shareholders ($M) | $608 | $591 | $532 | 3% | 14% | | Earnings per share, diluted | $0.91 | $0.88 | $0.78 | 3% | 17% | | Net interest income (FTE) ($M) | $1,525 | $1,500 | $1,427 | 2% | 7% | | Noninterest income ($M) | $781 | $750 | $711 | 4% | 10% | | Provision for credit losses ($M) | 197 | 173 | 160 | 14% | 23% | | Return on average assets | 1.21% | 1.20% | 1.06% | 1 bp | 15 bps | | Net interest margin (FTE) | 3.13% | 3.12% | 2.90% | 1 bp | 23 bps | | Efficiency (FTE) | 54.9% | 56.2% | 58.2% | (130) bps | (330) bps | | Net losses charged-off as a percent of average portfolio loans and leases (annualized) | 1.09% | 0.45% | 0.48% | 64 bps | 61 bps | | CET1 capital | 10.54% | 10.58% | 10.75% | (4) bps | (21) bps | | Assets under management ($B) | $77 | $73 | $69 | 5% | 12% | [Consolidated Statements of Income](index=17&type=section&id=Consolidated%20Statements%20of%20Income) This section presents the detailed consolidated statements of income for Fifth Third Bancorp, showing interest income, interest expense, net interest income, provision for credit losses, noninterest income, noninterest expense, income before income taxes, and net income available to common shareholders for the three months ended September 30, 2025, and comparative periods Consolidated Statements of Income ($ in millions) | Metric | September 2025 | June 2025 | September 2024 | Seq Change (%) | Yr/Yr Change (%) | | :------------------------------------ | :--------------- | :-------- | :--------------- | :------------- | :--------------- | | Total interest income | $2,519 | $2,484 | $2,669 | 1% | (6)% | | Total interest expense | 999 | 989 | 1,248 | 1% | (20)% | | Net Interest Income | 1,520 | 1,495 | 1,421 | 2% | 7% | | Provision for credit losses | 197 | 173 | 160 | 14% | 23% | | Total noninterest income | 781 | 750 | 711 | 4% | 10% | | Total noninterest expense | 1,267 | 1,264 | 1,244 | — | 2% | | Income Before Income Taxes | 837 | 808 | 728 | 4% | 15% | | Net Income Available to Common Shareholders | $608 | $591 | $532 | 3% | 14% | [Consolidated Balance Sheets](index=21&type=section&id=Consolidated%20Balance%20Sheets) This section provides a detailed breakdown of Fifth Third Bancorp's assets, liabilities, and equity as of September 30, 2025, and comparative prior periods, highlighting a 1% sequential increase in total assets and total deposits, and stable total equity Consolidated Balance Sheets ($ in millions) | Metric | September 2025 | June 2025 | September 2024 | Seq Change (%) | Yr/Yr Change (%) | | :------------------------------------ | :--------------- | :-------- | :--------------- | :------------- | :--------------- | | Total Assets | $212,903 | $209,991 | $214,318 | 1% | (1)% | | Other short-term investments | 17,215 | 13,043 | 21,729 | 32% | (21)% | | Portfolio loans and leases, net | 120,865 | 119,984 | 114,363 | 1% | 6% | | Total deposits | 166,569 | 164,207 | 168,340 | 1% | (1)% | | Total Liabilities | 191,796 | 188,867 | 193,534 | 2% | (1)% | | Total Equity | 21,107 | 21,124 | 20,784 | — | 2% | [Consolidated Statements of Changes in Equity](index=20&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) This statement details the changes in Fifth Third Bancorp's total equity for the three months and year-to-date periods ended September 30, 2025, compared to the prior year, showing the impact of net income, other comprehensive income, cash dividends, stock transactions, share repurchases, and preferred stock redemption Consolidated Statements of Changes in Equity ($ in millions) | Item | For the Three Months Ended September 2025 | | :------------------------------------------------- | :---------------------------------------- | | Total Equity, Beginning | $21,124 | | Net income | 649 | | Other comprehensive income, net of tax | 270 | | Comprehensive income | 919 | | Cash dividends declared: Common stock | (269) | | Cash dividends declared: Preferred stock | (37) | | Shares acquired for treasury | (303) | | Redemption of preferred stock | (350) | | Total Equity, Ending | $21,107 | [Average Balance Sheets and Yield/Rate Analysis](index=27&type=section&id=Average%20Balance%20Sheets%20and%20Yield%2FRate%20Analysis) This section provides average balance sheet data and a detailed yield/rate analysis for interest-earning assets and interest-bearing liabilities for the three months ended September 30, 2025, and comparative periods Average Balance Sheets and Yield/Rate Analysis (3Q25) | Metric | Average Balance ($M) | Average Yield/Rate | | :------------------------------------ | :------------------- | :----------------- | | Total interest-earning assets | $193,500 | 5.18% | | Total interest-bearing liabilities | $143,096 | 2.77% | | Net interest margin (FTE) | | 3.13% | | Net interest rate spread (FTE) | | 2.41% | * The yield on total loans and leases was **6.12%** for Q3 2025, stable sequentially[54](index=54&type=chunk) * The rate paid on total interest-bearing deposits was **2.41%** for Q3 2025, up 2 bps sequentially[54](index=54&type=chunk) [Summary of Loans and Leases](index=30&type=section&id=Summary%20of%20Loans%20and%20Leases) This section details the average and end-of-period portfolio loans and leases, categorized by commercial and consumer segments, for the current and prior quarters, also including loans and leases held for sale and loans serviced for others Average Portfolio Loans and Leases ($ in millions) | Category | September 2025 | June 2025 | September 2024 | | :----------------------------- | :--------------- | :-------- | :--------------- | | Total commercial loans and leases | $74,915 | $75,415 | $71,769 | | Total consumer loans | $48,411 | $47,656 | $45,057 | | Total average portfolio loans and leases | $123,326 | $123,071 | $116,826 | End of Period Portfolio Loans and Leases ($ in millions) | Category | September 2025 | June 2025 | September 2024 | | :----------------------------- | :--------------- | :-------- | :--------------- | | Total commercial loans and leases | $74,423 | $74,152 | $71,130 | | Total consumer loans | $48,707 | $48,244 | $45,538 | | Total portfolio loans and leases | $123,130 | $122,396 | $116,668 | * Total loans and leases serviced for others amounted to **$93,261 million** in Q3 2025[59](index=59&type=chunk) [Regulatory Capital](index=31&type=section&id=Regulatory%20Capital) This section provides detailed regulatory capital figures and ratios for Fifth Third Bancorp and Fifth Third Bank, National Association, as of September 30, 2025, and prior periods Regulatory Capital (Bancorp, $ in millions) | Metric | September 2025 | June 2025 | September 2024 | | :-------------------- | :--------------- | :-------- | :--------------- | | CET1 capital | $17,646 | $17,616 | $17,272 | | Additional tier 1 capital | 1,770 | 2,116 | 2,116 | | Tier 1 capital | 19,416 | 19,732 | 19,388 | | Total regulatory capital | $22,625 | $22,929 | $22,691 | | Risk-weighted assets | $167,415 | $166,517 | $160,604 | Regulatory Capital Ratios (Bancorp) | Metric | September 2025 | June 2025 | September 2024 | | :-------------------- | :--------------- | :-------- | :--------------- | | CET1 capital | 10.54% | 10.58% | 10.75% | | Tier 1 risk-based capital | 11.60% | 11.85% | 12.07% | | Total risk-based capital | 13.51% | 13.77% | 14.13% | | Leverage | 9.24% | 9.42% | 9.11% | * Fifth Third Bank, National Association maintained strong capital ratios with **Tier 1 risk-based capital at 12.92%** and **Leverage at 10.30%** in Q3 2025[60](index=60&type=chunk) [Summary of Credit Loss Experience](index=32&type=section&id=Summary%20of%20Credit%20Loss%20Experience) This section details the credit loss experience, including average portfolio loans and leases, total losses charged-off, recoveries, and net losses charged-off, broken down by commercial and consumer loan categories for the current and prior quarters Net Losses Charged-Off ($ in millions) | Category | September 2025 | June 2025 | September 2024 | | :----------------------------- | :--------------- | :-------- | :--------------- | | Total commercial loans and leases | $(275) | $(71) | $(72) | | Total consumer loans | $(64) | $(68) | $(70) | | Total net losses charged-off | $(339) | $(139) | $(142) | Net Losses Charged-Off as a Percent of Average Portfolio Loans and Leases (Annualized) | Category | September 2025 | June 2025 | September 2024 | | :------------------------------------------------- | :--------------- | :-------- | :--------------- | | Total commercial loans and leases | 1.46% | 0.38% | 0.40% | | Total consumer loans | 0.52% | 0.56% | 0.62% | | Total net losses charged-off as a percent of average portfolio loans and leases (annualized) | 1.09% | 0.45% | 0.48% | * Commercial and industrial loans experienced a significant increase in net charge-off ratio to **2.01%** in Q3 2025 from 0.51% in Q2 2025[63](index=63&type=chunk) [Asset Quality](index=34&type=section&id=Asset%20Quality) This section provides a detailed breakdown of the Allowance for Credit Losses (ACL), nonperforming assets, and delinquent loans, showing the ending balance of ALLL at $2,265 million and total nonperforming assets at $805 million for Q3 2025 Allowance for Credit Losses ($ in millions) | Metric | September 2025 | June 2025 | September 2024 | | :------------------------------------ | :--------------- | :-------- | :--------------- | | Allowance for loan and lease losses, ending | $2,265 | $2,412 | $2,305 | | Reserve for unfunded commitments, ending | $151 | $146 | $138 | | Total allowance for credit losses | $2,416 | $2,558 | $2,443 | Nonperforming Assets and Delinquent Loans ($ in millions) | Metric | September 2025 | June 2025 | September 2024 | | :------------------------------------------------- | :--------------- | :-------- | :--------------- | | Total nonaccrual portfolio loans and leases | $768 | $853 | $686 | | Total nonperforming portfolio loans and leases and OREO | $801 | $886 | $725 | | Total nonperforming assets | $805 | $913 | $733 | | Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO | 0.65% | 0.72% | 0.62% | * The ACL as a percent of nonperforming portfolio loans and leases increased to **314%** in Q3 2025 from 300% in Q2 2025[64](index=64&type=chunk) [Non-GAAP Reconciliation](index=36&type=section&id=Non-GAAP%20Reconciliation) This section provides reconciliations of various non-GAAP financial measures to their most directly comparable GAAP measures, explaining why management uses these non-GAAP measures for evaluating performance and capital adequacy * Management uses non-GAAP measures like FTE net interest income, tangible common equity, and adjusted efficiency ratio to evaluate operating performance and capital adequacy, believing they provide useful information to investors[66](index=66&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) * The FTE basis adjusts for the tax-favored status of income from certain loans and securities, providing a relevant comparison between taxable and non-taxable amounts[67](index=67&type=chunk) Key Non-GAAP Metrics (3Q25 vs. Prior Periods) | Metric | September 2025 | June 2025 | September 2024 | | :------------------------------------------------- | :--------------- | :-------- | :--------------- | | Net interest income (FTE) ($M) | $1,525 | $1,500 | $1,427 | | Tangible net income available to common shareholders ($M) | 613 | 596 | 539 | | Tangible book value per share (including AOCI) | $21.66 | $20.98 | $20.20 | | Tangible book value per share (excluding AOCI) | $26.61 | $26.29 | $25.29 | | Adjusted efficiency ratio | 54.1% | 55.2% | 55.9% | | Adjusted pre-provision net revenue (PPNR) ($M) | $1,061 | $1,002 | $960 | [Segment Presentation](index=39&type=section&id=Segment%20Presentation) This section presents the financial performance by business segment: Commercial Banking, Consumer and Small Business Banking, Wealth and Asset Management, and General Corporate and Other, showing the contribution of each segment to net interest income (FTE), provision for credit losses, noninterest income, noninterest expense, and income (loss) before income taxes (FTE) for the current and prior quarters Income (Loss) Before Income Taxes (FTE) by Segment ($ in millions) | Segment | September 2025 | June 2025 | September 2024 | | :------------------------------------ | :--------------- | :-------- | :--------------- | | Commercial Banking | $251 | $384 | $466 | | Consumer and Small Business Banking | $665 | $648 | $647 | | Wealth and Asset Management | $71 | $65 | $54 | | General Corporate and Other | $(145) | $(284) | $(433) | | Total | $842 | $813 | $734 | * During Q1 2025, the Bancorp realigned its reporting structure, moving certain business banking customer relationships and personnel to the Consumer and Small Business Banking segment from Commercial Banking, with prior period results adjusted[77](index=77&type=chunk) * Consumer and Small Business Banking showed consistent growth in income before income taxes (FTE) across the periods presented[76](index=76&type=chunk)

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

[Executive Summary & Strategic Highlights](index=1&type=section&id=1.%20Executive%20Summary%20%26%20Strategic%20Highlights) [Third Quarter 2025 Performance Overview](index=1&type=section&id=1.1.%20Third%20Quarter%202025%20Performance%20Overview) Comerica reported Q3 2025 net income of **$176 million**, driven by deposit growth and stable net interest income, maintaining strong capital Q3 2025 Key Financial Results (in millions, except per share and ratio data) | Metric | 3rd Qtr '25 | 2nd Qtr '25 | 3rd Qtr '24 | | :----------------------------- | :---------- | :---------- | :---------- | | Net income | $176 | $199 | $184 | | Diluted earnings per common share | $1.35 | $1.42 | $1.33 | | Net interest income | $574 | $575 | $534 | | Noninterest income | $264 | $274 | $277 | | Noninterest expenses | $589 | $561 | $562 | | Average deposits | $62,735 | $61,246 | $63,896 | | Estimated CET1 capital ratio | 11.90 % | 11.99 % | 11.96 %| - The company increased share repurchases to **$150 million** in the quarter, contributing to capital strength[1](index=1&type=chunk) [Merger with Fifth Third Bancorp](index=1&type=section&id=1.2.%20Merger%20with%20Fifth%20Third%20Bancorp) Comerica announced an all-stock merger with Fifth Third Bancorp, pending approvals and expected to close by Q1 2026 - Fifth Third Bancorp will acquire Comerica in an all-stock transaction[3](index=3&type=chunk) - Comerica shareholders will receive **1.8663 Fifth Third shares** for each Comerica share[3](index=3&type=chunk) - The transaction is anticipated to close at the **end of the first quarter of 2026**, pending shareholder and regulatory approvals[3](index=3&type=chunk) [Financial Performance Analysis (Q3 2025 vs Q2 2025)](index=2&type=section&id=2.%20Financial%20Performance%20Analysis%20(Q3%202025%20vs%20Q2%202025)) [Balance Sheet Dynamics](index=2&type=section&id=2.1.%20Balance%20Sheet%20Dynamics) Loans and securities remained stable, with deposits increasing by **$1.5 billion** driven by interest-bearing accounts - Loans remained relatively stable at **$50.8 billion**[4](index=4&type=chunk) - Period-end unrealized losses on securities **decreased $251 million** to **$2.2 billion**[5](index=5&type=chunk) - Deposits **increased $1.5 billion** to **$62.7 billion**, with interest-bearing deposits **increasing $1.7 billion**[5](index=5&type=chunk) - Noninterest-bearing deposits **decreased $184 million**, comprising **37%** of total deposits (down from **38%** in the prior quarter)[5](index=5&type=chunk)[10](index=10&type=chunk) [Net Interest Income and Margin](index=2&type=section&id=2.2.%20Net%20Interest%20Income%20and%20Margin) Net interest income remained stable at **$574 million**, but net interest margin decreased by **7 bps** to **3.09%** due to deposit growth and pricing Net Interest Income and Margin Trends (in millions, except margin data) | Metric | 3rd Qtr '25 | 2nd Qtr '25 | Change (QoQ) | | :---------------- | :---------- | :---------- | :----------- | | Net interest income | $574 | $575 | $(1) | | Net interest margin | 3.09 % | 3.16 % | (7 bps) | - The average cost of interest-bearing deposits **increased 9 basis points** to **2.78%**, reflecting strategic growth and competitive environment[10](index=10&type=chunk) - Decrease in net interest margin was driven by growth in interest-bearing deposits and relationship-focused deposit pricing, as well as a reduction in the benefit from BSBY cessation, partially offset by a reduction in both short-term borrowings and medium- and long-term debt[10](index=10&type=chunk)[15](index=15&type=chunk) [Credit Quality](index=2&type=section&id=2.3.%20Credit%20Quality) Provision for credit losses decreased to **$22 million**, while net charge-offs increased and nonperforming assets rose Credit Quality Metrics (in millions, except ratio data) | Metric | 3rd Qtr '25 | 2nd Qtr '25 | Change (QoQ) | | :------------------------------------------ | :---------- | :---------- | :----------- | | Provision for credit losses | $22 | $44 | $(22) | | Net charge-offs | $32 | $28 | $4 | | Nonperforming assets (NPAs) | $260 | $249 | $11 | | NPAs/Total loans and foreclosed property | 0.51 % | 0.49 % | 0.02 pp | | Allowance for credit losses/Total loans | 1.43 % | 1.44 % | (0.01 pp) | - Criticized loans **decreased $88 million** to **$2.7 billion**, or **5.2%** of total loans[18](index=18&type=chunk) [Noninterest Income](index=2&type=section&id=2.4.%20Noninterest%20Income) Noninterest income decreased by **$10 million** to **$264 million**, driven by lower fiduciary and capital markets income Noninterest Income Breakdown (in millions) | Item | 3rd Qtr '25 | 2nd Qtr '25 | Change (QoQ) | | :-------------------------- | :---------- | :---------- | :----------- | | Total noninterest income | $264 | $274 | $(10) | | Fiduciary income | $51 | $57 | $(6) | | Capital markets income | $37 | $42 | $(5) | | Bank-owned life insurance income | $13 | $9 | $4 | [Noninterest Expenses](index=2&type=section&id=2.5.%20Noninterest%20Expenses) Noninterest expenses increased by **$28 million** to **$589 million**, primarily due to higher litigation and operational losses Noninterest Expenses Trends (in millions) | Item | 3rd Qtr '25 | 2nd Qtr '25 | Change (QoQ) | | :-------------------------- | :---------- | :---------- | :----------- | | Total noninterest expenses | $589 | $561 | $28 | | Other noninterest expenses | $36 | $7 | $29 | | Salaries and benefits expense | $353 | $358 | $(5) | - Other noninterest expenses included a **$13 million increase** in litigation-related expenses and an **$8 million increase** in operational losses[11](index=11&type=chunk) [Capital and Shareholder Returns](index=2&type=section&id=2.6.%20Capital%20and%20Shareholder%20Returns) Comerica maintained a strong **11.90% CET1 ratio**, returning **$241 million** to shareholders and issuing **$392 million** in preferred stock - Estimated common equity Tier 1 capital ratio was **11.90%**[8](index=8&type=chunk) - Returned a total of **$241 million** to common shareholders, comprising **$150 million** in share repurchases and **$91 million** in common stock dividends[11](index=11&type=chunk) - Issued **400,000 shares** of **6.875% Series B Preferred Stock**, resulting in net proceeds of approximately **$392 million**[11](index=11&type=chunk) [Business Segment Results](index=17&type=section&id=3.%20Business%20Segment%20Results) [Commercial Bank](index=17&type=section&id=3.1.%20Commercial%20Bank) Commercial Bank net income slightly decreased to **$235 million**, with stable net interest income and lower credit loss provision Commercial Bank Segment Performance (in millions) | Metric | 3rd Qtr '25 | 2nd Qtr '25 | | :-------------------------- | :---------- | :---------- | | Net income (loss) | $235 | $243 | | Net interest income (expense) | $453 | $453 | | Provision for credit losses | $14 | $48 | | Average loans | $43,141 | $43,146 | [Retail Bank](index=17&type=section&id=3.2.%20Retail%20Bank) Retail Bank net income decreased to **$71 million**, driven by lower net interest income and higher noninterest expenses Retail Bank Segment Performance (in millions) | Metric | 3rd Qtr '25 | 2nd Qtr '25 | | :-------------------------- | :---------- | :---------- | | Net income (loss) | $71 | $82 | | Net interest income (expense) | $240 | $245 | | Noninterest expenses | $172 | $167 | | Average deposits | $23,321 | $23,443 | [Wealth Management](index=17&type=section&id=3.3.%20Wealth%20Management) Wealth Management net income decreased to **$11 million**, primarily due to lower noninterest income and higher credit loss provision Wealth Management Segment Performance (in millions) | Metric | 3rd Qtr '25 | 2nd Qtr '25 | | :-------------------------- | :---------- | :---------- | | Net income (loss) | $11 | $30 | | Noninterest income | $69 | $76 | | Provision for credit losses | $6 | $(1) | | Average deposits | $3,860 | $3,576 | [Finance and Other](index=17&type=section&id=3.4.%20Finance%20and%20Other) Finance segment net loss improved to **$142 million**, while the 'Other' category moved to a **$1 million** net income Finance and Other Segment Performance (in millions) | Segment | 3rd Qtr '25 Net Income (Loss) | 2nd Qtr '25 Net Income (Loss) | | :-------- | :-------------------------- | :-------------------------- | | Finance | $(142) | $(148) | | Other | $1 | $(8) | [Consolidated Financial Statements](index=8&type=section&id=4.%20Consolidated%20Financial%20Statements) [Consolidated Financial Highlights](index=8&type=section&id=4.1.%20Consolidated%20Financial%20Highlights) Overview of Comerica's key financial metrics, including per share data, performance ratios, capital, and credit quality Consolidated Financial Highlights (Selected Metrics) (in millions, except per share and ratio data) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------------ | :----------- | :----------- | :----------- | | Diluted earnings per common share | $1.35 | $1.42 | $1.33 | | Return on average common shareholders' equity | 10.20 % | 11.35 % | 10.88 % | | Common equity tier 1 capital ratio | 11.90 % | 11.99 % | 11.96 % | | Total loans (average, in millions) | $50,755 | $50,665 | $50,861 | | Total deposits (average, in millions) | $62,735 | $61,246 | $63,896 | | Net interest income (in millions) | $574 | $575 | $534 | | Net interest margin | 3.09 % | 3.16 % | 2.80 % | | Net charge-offs (in millions) | $32 | $28 | $11 | | Allowance for credit losses as % of total loans | 1.43 % | 1.44 % | 1.43 % | [Consolidated Balance Sheets](index=9&type=section&id=4.2.%20Consolidated%20Balance%20Sheets) Presents consolidated balance sheets, detailing assets, liabilities, and equity at key reporting dates Consolidated Balance Sheet Summary (in millions) | Item | Sep 30, 2025 | Jun 30, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :---------------------------------- | :----------- | :----------- | :----------- | :----------- | | Total assets | $77,376 | $77,988 | $79,297 | $79,663 | | Total loans (net) | $50,200 | $50,481 | $49,849 | $49,831 | | Total deposits | $62,596 | $60,003 | $63,811 | $63,077 | | Total liabilities | $69,947 | $71,128 | $72,754 | $72,297 | | Total shareholders' equity | $7,429 | $6,860 | $6,543 | $7,366 | [Consolidated Statements of Comprehensive Income](index=10&type=section&id=4.3.%20Consolidated%20Statements%20of%20Comprehensive%20Income) Details consolidated statements of comprehensive income, including interest income, expenses, and net income for Q3 2025 and 2024 Consolidated Statements of Comprehensive Income (Three Months Ended September 30, in millions, except per share data) | Item | 2025 | 2024 | | :-------------------------------------- | :--- | :--- | | Total interest income | $946 | $982 | | Total interest expense | $372 | $448 | | Net interest income | $574 | $534 | | Provision for credit losses | $22 | $14 | | Total noninterest income | $264 | $277 | | Total noninterest expenses | $589 | $562 | | Net income | $176 | $184 | | Diluted earnings per common share | $1.35 | $1.33 | [Consolidated Quarterly Statements of Comprehensive Income](index=11&type=section&id=4.4.%20Consolidated%20Quarterly%20Statements%20of%20Comprehensive%20Income) Detailed quarterly comparison of comprehensive income, highlighting changes in key income statement components for Q3 2025 vs Q2 2025 Consolidated Quarterly Statements of Comprehensive Income (Q3 2025 vs Q2 2025, in millions, except per share and percentage data) | Item | Q3 2025 | Q2 2025 | Change (Amount) | Change (Percent) | | :-------------------------------------- | :------ | :------ | :-------------- | :--------------- | | Total interest income | $946 | $931 | $15 | 2% | | Total interest expense | $372 | $356 | $16 | 5% | | Net interest income | $574 | $575 | $(1) | — | | Provision for credit losses | $22 | $44 | $(22) | (50%) | | Total noninterest income | $264 | $274 | $(10) | (4%) | | Total noninterest expenses | $589 | $561 | $28 | 5% | | Net income | $176 | $199 | $(23) | (12%) | | Diluted earnings per common share | $1.35 | $1.42 | $(0.07) | (5%) | [Analysis of Net Interest Income (Detailed)](index=14&type=section&id=4.5.%20Analysis%20of%20Net%20Interest%20Income%20(Detailed)) Detailed analysis of net interest income, breaking down average balances, interest income/expense, and rates for assets and liabilities Analysis of Net Interest Income (Three Months Ended September 30, 2025, in millions) | Item | Average Balance | Interest | Rate | | :-------------------------------------- | :-------------- | :------- | :----- | | Total loans | $50,755 | $779 | 6.09 % | | Total investment securities | $14,710 | $105 | 2.45 % | | Total earning assets | $71,220 | $946 | 5.10 % | | Total interest-bearing deposits | $39,812 | $280 | 2.78 % | | Total interest-bearing sources | $46,331 | $372 | 3.19 % | | Net interest income | | $574 | 1.91 % | | Net interest margin | | | 3.09 % | [Analysis of the Allowance for Credit Losses](index=12&type=section&id=4.6.%20Analysis%20of%20the%20Allowance%20for%20Credit%20Losses) Detailed analysis of allowance for credit losses, including balances, charge-offs, recoveries, and provision, presented quarterly Analysis of the Allowance for Credit Losses (in millions, except percentage data) | Item | 3rd Qtr '25 | 2nd Qtr '25 | 1st Qtr '25 | 4th Qtr '24 | 3rd Qtr '24 | | :------------------------------------------ | :---------- | :---------- | :---------- | :---------- | :---------- | | Balance at beginning of period (ACL) | $735 | $719 | $725 | $720 | $717 | | Total loan charge-offs | $45 | $31 | $32 | $23 | $23 | | Total recoveries | $13 | $3 | $6 | $7 | $12 | | Net loan charge-offs | $32 | $28 | $26 | $16 | $11 | | Provision for credit losses | $22 | $44 | $20 | $21 | $14 | | Balance at end of period (ACL) | $725 | $735 | $719 | $725 | $720 | | ACL as a percentage of total loans | 1.43 % | 1.44 % | 1.44 % | 1.44 % | 1.43 % | | Net loan charge-offs as % of avg total loans | 0.25 | 0.22 | 0.21 | 0.13 | 0.08 | [Nonperforming Assets](index=13&type=section&id=4.7.%20Nonperforming%20Assets) Detailed breakdown of nonperforming assets, including loans, foreclosed property, and nonaccrual loans, with asset quality ratios Nonperforming Assets Summary (in millions, except ratio data) | Item | 3rd Qtr '25 | 2nd Qtr '25 | 1st Qtr '25 | 4th Qtr '24 | 3rd Qtr '24 | | :------------------------------------------ | :---------- | :---------- | :---------- | :---------- | :---------- | | Total nonperforming loans | $258 | $248 | $301 | $308 | $250 | | Foreclosed property | $2 | $1 | $— | $— | $— | | Total nonperforming assets | $260 | $249 | $301 | $308 | $250 | | Nonperforming loans as % of total loans | 0.51 % | 0.48 % | 0.60 % | 0.61 % | 0.50 % | | Nonperforming assets as % of total loans and foreclosed property | 0.51 % | 0.49 % | 0.60 % | 0.61 % | 0.50 % | | Allowance for credit losses as a multiple of total nonperforming loans | 2.8x | 3.0x | 2.4x | 2.4x | 2.9x | | Loans past due 90 days or more and still accruing | $14 | $42 | $12 | $44 | $21 | [Consolidated Statements of Changes in Shareholders' Equity](index=16&type=section&id=4.8.%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Presents consolidated statements of changes in shareholders' equity, detailing movements from net income, dividends, and share repurchases Consolidated Statements of Changes in Shareholders' Equity (Selected Items, in millions) | Item | Balance at Jun 30, 2025 | Net Income | Other Comprehensive Income, net of tax | Cash Dividends Declared on Common Stock | Purchase of Common Stock | Issuance of Preferred Stock | Balance at Sep 30, 2025 | | :-------------------------------------- | :---------------------- | :--------- | :------------------------------------- | :-------------------------------------- | :----------------------- | :------------------------ | :---------------------- | | Total Shareholders' Equity | $6,860 | $176 | $238 | $(91) | $(151) | $392 | $7,429 | [Non-GAAP Financial Measures and Regulatory Ratios](index=18&type=section&id=5.%20Non-GAAP%20Financial%20Measures%20and%20Regulatory%20Ratios) [Non-GAAP Financial Measures and Regulatory Ratios](index=18&type=section&id=5.1.%20Non-GAAP%20Financial%20Measures%20and%20Regulatory%20Ratios) Explains non-GAAP financial measures like CET1 and tangible common equity, providing reconciliations for capital adequacy evaluation - Non-GAAP measures like **Common Equity Tier 1 capital ratio** and **tangible common equity** are used to evaluate the adequacy of common equity and performance trends, reflecting adjustments commonly made by stakeholders[44](index=44&type=chunk) Non-GAAP Financial Measures and Regulatory Ratios (in millions, except per share data) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :------------------------------------------ | :----------- | :----------- | :----------- | | Common equity tier 1 capital | $8,657 | $8,718 | $8,683 | | Tier 1 capital ratio | 12.44 % | 11.99 % | 12.51 % | | Common equity tier 1 capital ratio | 11.90 % | 11.99 % | 11.96 % | | Tangible common equity | $6,397 | $6,220 | $6,331 | | Tangible common equity ratio | 8.34 % | 8.04 % | 8.01 % | | Tangible common equity per share of common stock | $50.14 | $47.96 | $47.69 | [Additional Information](index=5&type=section&id=6.%20Additional%20Information) [Company Overview](index=5&type=section&id=6.1.%20Company%20Overview) Comerica Incorporated is a Dallas-based financial services company with three segments, operating across multiple U.S. states, Canada, and Mexico - Comerica Incorporated is a financial services company headquartered in **Dallas, Texas**[19](index=19&type=chunk) - The company is strategically aligned by three business segments: the **Commercial Bank**, the **Retail Bank**, and **Wealth Management**[19](index=19&type=chunk) - Comerica provides banking centers in **Arizona, California, Florida, Michigan, and Texas**, and is expanding into new regions like **North Carolina** and **Colorado**, also servicing **Canada** and **Mexico**[19](index=19&type=chunk) [Forward-Looking Statements](index=6&type=section&id=6.2.%20Forward-Looking%20Statements) Contains forward-looking statements on strategy and results, highlighting risks, especially regarding the Fifth Third merger and macroeconomic conditions - Forward-looking statements cover business strategy, goals, projected financial and operating results, and future capital uses[22](index=22&type=chunk) - Important factors that could cause actual results to differ materially include risks related to the merger with Fifth Third (e.g., realization of synergies, closing conditions, integration challenges), economic conditions, regulatory changes, and competitive pressures[23](index=23&type=chunk)[24](index=24&type=chunk) - The company undertakes no obligation to publicly update any forward-looking statement, except as required by law[24](index=24&type=chunk) [Media and Investor Contacts](index=7&type=section&id=6.3.%20Media%20and%20Investor%20Contacts) Provides contact information for media and investor relations inquiries - Media Contacts: **Nicole Hogan** and **Louis H. Mora**[25](index=25&type=chunk) - Investor Contacts: **Kelly Gage** and **Lindsey Baird**[25](index=25&type=chunk)

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Autoliv achieved record Q3 2025 financial results, driven by strong sales and cost reductions, while reaffirming positive full-year guidance and strategic investments [Q3 2025 Financial Highlights](index=2&type=section&id=Q3%202025%20Financial%20Highlights) Autoliv reported a record-breaking third quarter in 2025, achieving significant increases in net sales, operating income, and diluted EPS. The company's adjusted operating margin also saw a notable improvement, reflecting strong financial performance | Key Figures (Dollars in millions, except per share data) | Q3 2025 | Q3 2024 | Change | 9M 2025 | 9M 2024 | Change | | :------------------------------------------------ | :------ | :------ | :----- | :------ | :------ | :----- | | Net sales | $2,706 | $2,555 | 5.9% | $7,998 | $7,774 | 2.9% | | Operating income | 267 | 226 | 18% | 769 | 626 | 23% | | Adjusted operating income | 271 | 237 | 14% | 777 | 657 | 18% | | Operating margin | 9.9% | 8.9% | 1.0pp | 9.6% | 8.1% | 1.6pp | | Adjusted operating margin | 10.0% | 9.3% | 0.7pp | 9.7% | 8.5% | 1.3pp | | Earnings per share - diluted | 2.28 | 1.74 | 31% | 6.59 | 4.98 | 32% | | Adjusted earnings per share - diluted | 2.32 | 1.84 | 26% | 6.67 | 5.30 | 26% | | Operating cash flow | 258 | 177 | 46% | 613 | 639 | (4.1)% | | Return on capital employed | 25.1% | 22.9% | 2.2pp | 24.9% | 21.2% | 3.8pp | | Adjusted return on capital employed | 25.5% | 23.9% | 1.6pp | 25.2% | 22.1% | 3.0pp | [CEO's Comments](index=2&type=section&id=CEO%27s%20Comments) Mikael Bratt, President & CEO, highlighted Q3 2025 as a record-breaking quarter for sales, operating income, and EPS, driven by strong sales in Americas and Europe, cost reductions, and tariff compensation. The company saw solid outperformance with domestic Chinese OEMs and continued high growth in India. Strategic investments in China, including a new R&D center and a joint venture for advanced safety electronics, are underway to support future growth - Q3 2025 was a record-breaking quarter for sales, operating income, and EPS, driven by better-than-expected sales in Americas and Europe, successful cost reduction, and tariff compensation[8](index=8&type=chunk) - The company achieved solid outperformance with domestic Chinese OEMs and expects increased outperformance in China in Q4[8](index=8&type=chunk) - High growth in India continued, accounting for approximately **one-third of global organic growth in Q3**, driven by increased penetration of automotive safety[9](index=9&type=chunk) - Autoliv is investing for continued success in China, including building a second R&D Center and forming a joint venture with HSAE for advanced safety electronics[9](index=9&type=chunk) - Around **75% of tariff costs were recovered in Q3**, with expectations to recover most of the remainder in Q4[10](index=10&type=chunk) - Operating cash flow increased by **46%**, and free cash flow improved substantially due to strong balance sheet control and lower capital expenditure, net[11](index=11&type=chunk) [Key Business Developments in Q3 2025](index=2&type=section&id=Key%20Business%20Developments%20in%20Q3%202025) In Q3 2025, Autoliv's organic sales grew by 3.9%, slightly below global LVP increase, impacted by regional LVP mix but boosted by tariff compensations. Profitability significantly improved due to organic sales growth, cost reductions, and supplier settlements. Operating cash flow increased substantially, and the company maintained a healthy leverage ratio while increasing dividends and repurchasing shares - Net sales increased organically by **3.9%**, which was **0.7 percentage points lower** than the global Light Vehicle Production (LVP) increase of **4.6%**. Regional and customer LVP mix negatively impacted sales by about **1 percentage point**, while tariff compensations added around **0.5 percentage points**[13](index=13&type=chunk) - Profitability improved significantly, with operating income increasing by **18% to $267 million** and adjusted operating income increasing by **14% to $271 million**. This was mainly due to organic sales growth, successful cost reductions, and positive effects from supplier settlement and compensation[13](index=13&type=chunk) - Operating cash flow increased by **46%**, reflecting improved profit and working capital. Capital expenditure, net, was significantly reduced, leading to a substantial increase in free operating cash flow[13](index=13&type=chunk) - The leverage ratio stood at **1.3x**, below the target limit of **1.5x**. In the quarter, a dividend of **$0.85 per share** (**21% increase** from Q2 '25) was paid, and **0.84 million shares** were repurchased and retired[13](index=13&type=chunk) [Full Year 2025 Guidance](index=2&type=section&id=Full%20Year%202025%20Guidance) Autoliv reaffirmed its full-year 2025 guidance, expecting around 3% organic sales growth and an adjusted operating margin of 10-10.5%, with operating cash flow around $1.2 billion. The guidance is based on customer call-offs, targeted cost compensation adjustments, and no significant changes in macro-economic conditions or trade restrictions | Full year 2025 Guidance | | | :------------------------ | :---------- | | Organic sales growth | Around 3% | | Adjusted operating margin | Around 10-10.5% | | Operating cash flow | Around $1.2 billion | | Capex, net, % of sales | Around 4.5% | | Full year 2025 Assumptions | | | :------------------------- | :---------- | | LVP growth | Around 1.5% | | FX impact on net sales | Around 1% | | Tax rate | Around 28% | - The guidance assumes achievement of targeted cost compensation adjustments with customers, including for new tariffs, and no further material changes to tariffs or trade restrictions as of October 15, 2025[14](index=14&type=chunk) - No significant changes in the macro-economic environment, customer call-off volatility, or significant supply chain disruptions are assumed[14](index=14&type=chunk) [Business and Market Conditions](index=4&type=section&id=Business%20and%20Market%20Conditions) Autoliv manages supply chain volatility, inflation, and geopolitical risks, actively mitigating costs and tariff impacts [Supply Chain](index=4&type=section&id=Supply%20Chain) Global Light Vehicle Production (LVP) increased by 4.6% year-over-year in Q3 2025. While call-off volatility improved slightly compared to the previous year, it remains higher than pre-pandemic levels, impacting production efficiency and profitability. The company anticipates slightly lower call-off volatility for the full year 2025 compared to 2024, but continued uncertainty regarding tariffs and trade restrictions could worsen the environment - Global LVP increased by **4.6%** year-over-year in Q3 2025[17](index=17&type=chunk) - Call-off volatility improved slightly but remains higher than pre-pandemic levels, negatively impacting production efficiency and profitability[17](index=17&type=chunk) - Full year 2025 call-off volatility is expected to be slightly lower than 2024 but still above pre-pandemic levels, with tariff uncertainty posing a risk[17](index=17&type=chunk) [Inflation](index=4&type=section&id=Inflation) Cost pressure from labor and other items negatively impacted profitability in Q3, though less severely than in Q3 2024. Most inflationary costs were offset by price increases and customer compensations. Raw material prices had no significant impact, but ongoing tariff and trade restriction uncertainties could lead to a more adverse inflation environment. Autoliv continues to implement productivity and cost reduction initiatives - Cost pressure from labor and other items negatively impacted profitability in Q3 2025, but to a lesser degree than Q3 2024[18](index=18&type=chunk) - Most inflationary cost pressure was offset by price increases and customer compensations[18](index=18&type=chunk) - Raw material price changes did not have a meaningful impact on profitability during the quarter[18](index=18&type=chunk) - Uncertainty regarding tariffs and trade restrictions may lead to a more adverse inflation environment[18](index=18&type=chunk) [Geopolitical Risks and Tariffs](index=4&type=section&id=Geopolitical%20Risks%20and%20Tariffs) New tariffs in the first nine months of 2025 did not materially impact Q3 profitability, as Autoliv secured customer compensations for most costs, recovering about 75% in the quarter. The unrecovered tariff impact on operating income was around $5 million negative, with a 20bps negative impact on operating margin. The company expects to recover most remaining tariffs later in the year and anticipates a full-year tariff dilution of around 20 bps on operating margin, while closely monitoring the evolving geopolitical and trade policy environment - New tariffs did not materially impact Q3 profitability due to customer compensations, with around **75% of tariff costs recovered**[19](index=19&type=chunk) - The impact of unrecovered tariffs on operating income was approximately **$5 million negative** in Q3, and operating margin was negatively impacted by around **20bps**[19](index=19&type=chunk) - For the full year 2025, tariff dilution on operating margin is expected to be around **20 bps**[19](index=19&type=chunk) - Geopolitical uncertainties continue to create a challenging operating environment, and the company remains agile in responding to trade policy developments[19](index=19&type=chunk) [Sales Performance](index=6&type=section&id=Sales%20Performance) Autoliv's Q3 and 9M 2025 organic sales grew across segments and regions, supported by new product launches despite China LVP mix [Q3 2025 Consolidated Sales Development](index=6&type=section&id=Q3%202025%20Consolidated%20Sales%20Development) Autoliv's consolidated sales in Q3 2025 increased by 5.9% to $2,706 million, with organic sales growth of 3.9%. Growth was observed across both product segments and all regions, with China showing strong organic growth despite overall LVP underperformance | Consolidated sales (Dollars in millions) | Q3 2025 | Q3 2024 | Reported change (U.S. GAAP) | Currency effects | Organic change* | | :--------------------------------------- | :------ | :------ | :-------------------------- | :--------------- | :-------------- | | Airbags, Steering Wheels and Other | $1,830 | $1,736 | 5.4% | 1.8% | 3.6% | | Seatbelt Products and Other | 875 | 819 | 6.9% | 2.4% | 4.5% | | Total | $2,706 | $2,555 | 5.9% | 2.0% | 3.9% | | Consolidated sales by region (Dollars in millions) | Q3 2025 | Q3 2024 | Reported change (U.S. GAAP) | Currency effects | Organic change* | | :------------------------------------------------- | :------ | :------ | :-------------------------- | :--------------- | :-------------- | | Americas | $897 | $851 | 5.3% | 0.6% | 4.7% | | Europe | 745 | 700 | 6.4% | 6.3% | 0.1% | | China | 526 | 495 | 6.3% | 0.1% | 6.2% | | Asia excl. China | 538 | 508 | 5.8% | 0.3% | 5.5% | | Total | $2,706 | $2,555 | 5.9% | 2.0% | 3.9% | [Sales by Product (Airbags, Steering Wheels and Other)](index=6&type=section&id=Sales%20by%20Product%20%28Airbags%2C%20Steering%20Wheels%20and%20Other%29) Organic sales for Airbags, Steering Wheels and Other grew by 3.6% in Q3 2025, primarily driven by inflatable curtains, side airbags, driver airbags, and center airbags, partially offset by a decline in steering wheels - Organic sales for Airbags, Steering Wheels and Other grew by **3.6%** in Q3 2025[35](index=35&type=chunk) - Largest contributors to the increase were inflatable curtains, side airbags, driver airbags, and center airbags[35](index=35&type=chunk) - This growth was partly offset by a decline in steering wheels[35](index=35&type=chunk) [Sales by Product (Seatbelt Products and Other)](index=6&type=section&id=Sales%20by%20Product%20%28Seatbelt%20Products%20and%20Other%29) Organic sales for Seatbelt Products and Other increased by 4.5% in Q3 2025, with growth observed across all regions, led by strong performance in Europe and Americas - Organic sales for Seatbelt Products and Other grew by **4.5%** in Q3 2025[36](index=36&type=chunk) - Sales increased organically in all regions, with strong growth in Europe and Americas[36](index=36&type=chunk) [Sales by Region](index=6&type=section&id=Sales%20by%20Region) Global organic sales increased by 3.9%, underperforming the global LVP increase of 4.6% due to negative regional and model LVP mix, particularly in China. However, Autoliv's sales growth with domestic Chinese OEMs significantly outpaced their LVP growth, indicating improved performance in this segment - Global organic sales increased by **3.9%**, underperforming global LVP growth of **4.6%** by **0.7 percentage points**[37](index=37&type=chunk) - Outperformed LVP growth in Asia ex. China (**4.2pp**) and Americas (**0.5pp**), but underperformed in China (**3.5pp**) and Europe (**1.2pp**)[37](index=37&type=chunk) - Autoliv's sales growth with domestic Chinese OEMs was **23%**, significantly higher than their LVP growth of **15%**[38](index=38&type=chunk) | Q3 2025 organic growth* | Americas | Europe | China | Asia excl. China | Global | | :---------------------- | :------- | :----- | :---- | :--------------- | :----- | | Autoliv | 4.7% | 0.1% | 6.2% | 5.5% | 3.9% | | LVP (Oct 2025) | 4.2% | 1.3% | 9.7% | 1.3% | 4.6% | [First Nine Months 2025 Consolidated Sales Development](index=7&type=section&id=First%20Nine%20Months%202025%20Consolidated%20Sales%20Development) For the first nine months of 2025, total net sales grew by 2.9% to $7,998 million, with organic sales growth of 3.1%. Both product segments and most regions contributed to this growth, although China showed a significant underperformance relative to its LVP growth, primarily due to the mix towards domestic OEMs with lower safety content | Consolidated sales (Dollars in millions) | 9M 2025 | 9M 2024 | Reported change (U.S. GAAP) | Currency effects | Organic change* | | :--------------------------------------- | :------ | :------ | :-------------------------- | :--------------- | :-------------- | | Airbags, Steering Wheels and Other | $5,395 | $5,264 | 2.5% | (0.3)% | 2.8% | | Seatbelt Products and Other | 2,603 | 2,511 | 3.7% | (0.2)% | 3.9% | | Total | $7,998 | $7,774 | 2.9% | (0.3)% | 3.1% | | Consolidated sales by region (Dollars in millions) | 9M 2025 | 9M 2024 | Reported change (U.S. GAAP) | Currency effects | Organic change* | | :------------------------------------------------- | :------ | :------ | :-------------------------- | :--------------- | :-------------- | | Americas | $2,639 | $2,637 | 0.1% | (3.3)% | 3.4% | | Europe | 2,337 | 2,231 | 4.7% | 2.9% | 1.8% | | China | 1,450 | 1,423 | 1.9% | (0.3)% | 2.2% | | Asia excl. China | 1,572 | 1,483 | 6.0% | 0.3% | 5.7% | | Total | $7,998 | $7,774 | 2.9% | (0.3)% | 3.1% | [Sales by Product (Airbags, Steering Wheels and Other) 9M](index=7&type=section&id=Sales%20by%20Product%20%28Airbags%2C%20Steering%20Wheels%20and%20Other%29%209M) Organic sales for Airbags, Steering Wheels and Other grew by 2.8% in the first nine months of 2025, primarily driven by inflatable curtains, side airbags, center airbags, steering wheels, and driver airbags - Organic sales for Airbags, Steering Wheels and Other grew by **2.8%** in the first nine months of 2025[42](index=42&type=chunk) - Key contributors to the increase were inflatable curtains, side airbags, center airbags, steering wheels, and driver airbags[42](index=42&type=chunk) [Sales by Product (Seatbelt Products and Other) 9M](index=7&type=section&id=Sales%20by%20Product%20%28Seatbelt%20Products%20and%20Other%29%209M) Organic sales for Seatbelt Products and Other increased by 3.9% in the first nine months of 2025, mainly driven by Americas and Asia excluding China - Organic sales for Seatbelt Products and Other grew by **3.9%** in the first nine months of 2025[43](index=43&type=chunk) - Sales growth was mainly driven by Americas and Asia excluding China[43](index=43&type=chunk) [Sales by Region 9M](index=7&type=section&id=Sales%20by%20Region%209M) Global organic sales increased by 3.1% in the first nine months, underperforming global LVP growth of 3.9% due to negative regional and model LVP mix, particularly in China. Autoliv's sales to domestic Chinese OEMs increased by 16%, while sales to global OEMs in China decreased by 5.7% - Global organic sales increased by **3.1%**, underperforming global LVP growth of **3.9%** by **0.8 percentage points**[44](index=44&type=chunk) - Outperformed LVP growth in Americas (**3.5pp**), Europe (**3.4pp**), and Asia excluding China (**3.0pp**), but underperformed by **9.3pp** in China[44](index=44&type=chunk) - Autoliv's sales to domestic Chinese OEMs increased by **16%**, while sales to global OEMs in China decreased by **5.7%**[45](index=45&type=chunk) | 9M 2025 organic growth* | Americas | Europe | China | Asia excl. China | Global | | :---------------------- | :------- | :----- | :---- | :--------------- | :----- | | Autoliv | 3.4% | 1.8% | 2.2% | 5.7% | 3.1% | | LVP (Oct 2025) | (0.1)% | (1.6)% | 11.5% | 2.7% | 3.9% | [Key Product Launches in Q3 2025](index=8&type=section&id=Key%20Product%20Launches%20in%20Q3%202025) Autoliv launched safety products for several new vehicle models in Q3 2025, including the Onvo L90, Kia PV5, Volvo XC70, Subaru Outback, Jeep Compass, Renault Clio, Geely Galaxy M9, and Nissan Sentra, covering a range of airbags, seatbelts, and other safety components - Key launches in Q3 2025 included safety systems for Onvo L90, Kia PV5, Volvo XC70, Subaru Outback, Jeep Compass, Renault Clio, Geely Galaxy M9, and Nissan Sentra[49](index=49&type=chunk) - Products launched included Driver/Passenger Airbags, Seatbelts, Side Airbags, Head/Inflatable Curtain Airbags, Steering Wheel, Knee Airbag, Front Center Airbag, Bag-in-Belt, Pyrotechnical Safety Switch, Pedestrian Airbag, and Hood Lifter[49](index=49&type=chunk) [Financial Performance](index=9&type=section&id=Financial%20Performance) Autoliv's Q3 and 9M 2025 financial performance was strong, with significant income and cash flow growth, a healthy balance sheet, and reduced headcount [Condensed Income Statement Analysis](index=9&type=section&id=Condensed%20Income%20Statement%20Analysis) Autoliv's income statement showed strong growth in Q3 and the first nine months of 2025. Gross profit and operating income increased significantly, driven by higher sales, improved operational efficiency, and lower costs. Diluted EPS also saw substantial increases for both periods | Condensed Income Statement (Dollars in millions, except per share data) | Q3 2025 | Q3 2024 | Change | 9M 2025 | 9M 2024 | Change | | :-------------------------------------------------------------------- | :------ | :------ | :----- | :------ | :------ | :----- | | Net sales | $2,706 | $2,555 | 5.9% | $7,998 | $7,774 | 2.9% | | Gross profit | 522 | 459 | 14% | 1,502 | 1,377 | 9.1% | | Operating income | 267 | 226 | 18% | 769 | 626 | 23% | | Adjusted operating income | 271 | 237 | 14% | 777 | 657 | 18% | | Net income | $175 | $139 | 26% | $510 | $404 | 26% | | Earnings per share - diluted | $2.28 | $1.74 | 31% | $6.59 | $4.98 | 32% | | Adjusted earnings per share - diluted | $2.32 | $1.84 | 26% | $6.67 | $5.30 | 26% | | Gross margin | 19.3% | 18.0% | 1.3pp | 18.8% | 17.7% | 1.1pp | | Operating margin | 9.9% | 8.9% | 1.0pp | 9.6% | 8.1% | 1.6pp | | Tax Rate | 26.9% | 29.6% | (2.6)pp| 26.4% | 27.0% | (0.6)pp| [Third Quarter 2025 Development](index=9&type=section&id=Third%20Quarter%202025%20Development) In Q3 2025, gross profit increased by $63 million (14%) and gross margin by 1.3pp, driven by higher sales, improved operational efficiency, and supplier compensations. Operating income rose by $41 million (18%), and diluted EPS increased by $0.54 (31%), benefiting from higher operating income, tax effects, and fewer outstanding shares - Gross profit increased by **$63 million** (**14%**) and gross margin by **1.3pp**, mainly due to higher sales, improved operational efficiency, and supplier compensations[51](index=51&type=chunk) - Operating income increased by **$41 million** (**18%**) compared to the prior year[54](index=54&type=chunk) - Diluted EPS increased by **$0.54** (**31%**), driven by higher operating income (**$0.36**), taxes (**$0.09**), and lower outstanding shares (**$0.08**)[56](index=56&type=chunk) - R,D&E, net costs increased by **$22 million** (**23%**), primarily due to lower engineering income[52](index=52&type=chunk) [First Nine Months 2025 Development](index=10&type=section&id=First%20Nine%20Months%202025%20Development) For the first nine months of 2025, gross profit increased by $125 million (9.1%) and gross margin by 1.1pp, attributed to improved operational efficiency, organic sales growth, and lower material costs. Operating income rose by $143 million (23%), and diluted EPS increased by $1.61 (32%), primarily from higher operating income and fewer outstanding shares - Gross profit increased by **$125 million** (**9.1%**) and gross margin by **1.1pp**, driven by improved operational efficiency, organic sales growth, and lower material costs[57](index=57&type=chunk) - Operating income increased by **$143 million** (**23%**) compared to the prior year[61](index=61&type=chunk) - Diluted EPS increased by **$1.61** (**32%**), mainly from higher operating income (**$1.28**) and lower outstanding shares (**$0.29**)[63](index=63&type=chunk) - R,D&E, net costs decreased by **$5 million** (**1.6%**), benefiting from positive FX translation effects and lower professional service costs[59](index=59&type=chunk) [Selected Cash Flow and Balance Sheet Items Analysis](index=11&type=section&id=Selected%20Cash%20Flow%20and%20Balance%20Sheet%20Items%20Analysis) Autoliv demonstrated strong cash flow generation in Q3 2025, with operating cash flow increasing by 46% and free operating cash flow by 378%. For the first nine months, free operating cash flow also saw a significant increase of 44%, despite a slight decrease in operating cash flow. The company maintained a healthy balance sheet with a leverage ratio of 1.3x, below its target limit | Selected Cash Flow items (Dollars in millions) | Q3 2025 | Q3 2024 | Change | 9M 2025 | 9M 2024 | Change | | :--------------------------------------------- | :------ | :------ | :----- | :------ | :------ | :----- | | Net income | $175 | $139 | 26% | $510 | $404 | 26% | | Operating cash flow | 258 | 177 | 46% | 613 | 639 | (4.1)% | | Capital expenditure, net | (106) | (145) | (27)% | (313) | (431) | (27)% | | Free operating cash flow | $153 | $32 | 378% | $300 | $208 | 44% | | Cash conversion | 87% | 23% | 64pp | 59% | 52% | 7pp | | Dividends paid | (65) | (54) | 21% | (173) | (164) | 5.3% | | Share repurchases | (100) | (130) | (23)% | (201) | (450) | (55)% | | Selected Balance Sheet items (Dollars in millions) | Q3 2025 | Q3 2024 | Change | | :------------------------------------------------- | :------ | :------ | :----- | | Trade working capital | $1,504 | $1,307 | 15% | | Trade working capital in relation to sales | 13.9% | 12.8% | 1.1pp | | Cash & cash equivalents | 225 | 415 | (46)% | | Gross Debt | 2,027 | 2,210 | (8.3)% | | Net Debt | 1,772 | 1,787 | (0.8)% | | Capital employed | 4,331 | 4,085 | 6.0% | | Total equity | 2,559 | 2,298 | 11% | | Leverage ratio | 1.3 | 1.4 | (0.1) | [Third Quarter 2025 Development Cash Flow](index=11&type=section&id=Third%20Quarter%202025%20Development%20Cash%20Flow) Operating cash flow increased by $81 million (46%) to $258 million in Q3 2025, driven by higher net income and more positive non-cash items. Capital expenditure, net, decreased by $40 million (27%), leading to a substantial increase in free operating cash flow to $153 million (378%). Cash conversion improved significantly to 87% - Operating cash flow increased by **$81 million** (**46%**) to **$258 million** in Q3 2025[66](index=66&type=chunk) - Capital expenditure, net, decreased by **$40 million** (**27%**), with the ratio to sales declining to **3.9%** from **5.7%**[67](index=67&type=chunk) - Free operating cash flow was positive **$153 million**, a **378% increase** from **$32 million** in the prior year[68](index=68&type=chunk) - Cash conversion was **87%** in Q3, up from **23%** a year earlier[68](index=68&type=chunk) [First Nine Months 2025 Development Cash Flow](index=12&type=section&id=First%20Nine%20Months%202025%20Development%20Cash%20Flow) For the first nine months of 2025, operating cash flow decreased by $27 million (4.1%) to $613 million, primarily due to a larger increase in operating working capital. However, capital expenditure, net, decreased by $118 million (27%), resulting in a 44% increase in free operating cash flow to $300 million. The leverage ratio improved to 1.3x from 1.4x - Operating cash flow decreased by **$27 million** (**4.1%**) to **$613 million** for the first nine months of 2025[71](index=71&type=chunk) - Capital expenditure, net, decreased by **$118 million** (**27%**), with the ratio to sales declining to **3.9%** from **5.5%**[72](index=72&type=chunk) - Free operating cash flow was positive **$300 million**, a **44% increase** from **$208 million** in the prior year[74](index=74&type=chunk) - The leverage ratio improved to **1.3x** as of September 30, 2025, from **1.4x** a year earlier[74](index=74&type=chunk) [Headcount](index=12&type=section&id=Headcount) As of September 30, 2025, total headcount decreased by 3.0% year-over-year to 65,200, despite a 3.9% organic sales increase and some in-sourcing. This reduction was primarily in the direct workforce, supported by improved customer call-off accuracy and operational efficiency initiatives | Headcount | Sep 30 2025 | Jun 30 2025 | Sep 30 2024 | | :----------------------------- | :---------- | :---------- | :---------- | | Total headcount | 65,200 | 65,100 | 67,200 | | Direct headcount in manufacturing | 47,900 | 48,000 | 49,800 | | Indirect headcount | 17,300 | 17,100 | 17,400 | | Temporary personnel | 9% | 9% | 9% | - Total headcount decreased by approximately **2,000** (**3.0%**) year-over-year, despite a **3.9% organic sales increase** and in-sourcing of about **250 FTEs**[76](index=76&type=chunk) - The direct workforce decreased by approximately **1,900** (**3.8%**), supported by improved customer call-off accuracy and operational efficiency improvements[76](index=76&type=chunk) [Non-U.S. GAAP Reconciliations and Definitions](index=18&type=section&id=Non-U.S.%20GAAP%20Reconciliations%20and%20Definitions) This section provides reconciliations and definitions for non-U.S. GAAP financial measures, enhancing comparability and transparency [Components in Sales Increase/Decrease](index=18&type=section&id=Components%20in%20Sales%20Increase%2FDecrease) Autoliv analyzes sales trends using organic sales growth to provide a comparable basis, separating the impact of acquisitions/divestitures and exchange rates, as approximately 75% of sales are generated in non-U.S. dollar currencies - Organic sales growth is used to analyze sales trends on a comparable basis, isolating the impact of acquisitions/divestitures and exchange rates[90](index=90&type=chunk) - Approximately **75%** of the company's sales are generated in currencies other than the U.S. dollar[90](index=90&type=chunk) [Trade Working Capital Reconciliation](index=18&type=section&id=Trade%20Working%20Capital%20Reconciliation) Trade working capital, a non-U.S. GAAP measure, is used by management to assess operational efficiency and its impact on cash generation. It is defined as outstanding receivables and inventory less outstanding payables, and its relationship to annualized sales is a key indicator - Trade working capital is a non-U.S. GAAP measure used to assess operational efficiency and its impact on cash generation[91](index=91&type=chunk) | (Dollars in millions) | Sep 30 2025 | Jun 30 2025 | Mar 31 2025 | Dec 31 2024 | Sep 30 2024 | | :-------------------- | :---------- | :---------- | :---------- | :---------- | :---------- | | Receivables, net | $2,357 | $2,341 | $2,205 | $1,993 | $2,192 | | Inventories, net | 1,036 | 957 | 913 | 921 | 997 | | Accounts payable | (1,889) | (1,945) | (1,839) | (1,799) | (1,881) | | Trade working capital | $1,504 | $1,354 | $1,279 | $1,115 | $1,307 | | Annualized quarterly sales | $10,822 | $10,857 | $10,312 | $10,463 | $10,218 | | Trade working capital in relation to annualized quarterly sales | 13.9% | 12.5% | 12.4% | 10.7% | 12.8% | [Net Debt Reconciliation](index=20&type=section&id=Net%20Debt%20Reconciliation) Net debt, a non-U.S. GAAP measure, is used to analyze the company's debt position, adjusted for debt-related derivatives to reflect the total financial liability without currency or interest fair values. This metric is crucial for creditors and credit rating agencies - Net debt is a non-U.S. GAAP measure used to analyze the company's debt, adjusted for debt-related derivatives to show total financial liability[94](index=94&type=chunk) | (Dollars in millions) | Sep 30 2025 | Jun 30 2025 | Mar 31 2025 | Dec 31 2024 | Sep 30 2024 | | :-------------------- | :---------- | :---------- | :---------- | :---------- | :---------- | | Short-term debt | $654 | $679 | $540 | $387 | $624 | | Long-term debt | 1,374 | 1,372 | 1,565 | 1,522 | 1,586 | | Total debt | 2,027 | 2,051 | 2,105 | 1,909 | 2,210 | | Cash & cash equivalents | (225) | (237) | (322) | (330) | (415) | | Debt issuance cost/Debt-related derivatives, net | (30) | (62) | 4 | (24) | (9) | | Net debt | $1,772 | $1,752 | $1,787 | $1,554 | $1,787 | [Leverage Ratio Reconciliation](index=20&type=section&id=Leverage%20Ratio%20Reconciliation) The leverage ratio, a non-U.S. GAAP measure, is used to analyze the company's debt capacity under its policy, aiming for a strong investment grade credit rating with a long-term target of 1.5x or below. It is calculated as net debt adjusted for pension liabilities in relation to adjusted EBITDA - The leverage ratio is a non-U.S. GAAP measure used to analyze debt capacity, aiming for a strong investment grade credit rating and a long-term target of **1.5x or below**[96](index=96&type=chunk) - It is measured as net debt adjusted for pension liabilities in relation to adjusted EBITDA[96](index=96&type=chunk) | (Dollars in millions) | Sep 30 2025 | Jun 30 2025 | Sep 30 2024 | | :-------------------- | :---------- | :---------- | :---------- | | Net debt | $1,772 | $1,752 | $1,787 | | Pension liabilities | 167 | 167 | 147 | | Net debt per the Policy | $1,939 | $1,919 | $1,934 | | EBITDA per the Policy (Adjusted EBITDA) | $1,524 | $1,483 | $1,376 | | Leverage ratio | 1.3 | 1.3 | 1.4 | [Free Operating Cash Flow and Cash Conversion Reconciliation](index=21&type=section&id=Free%20Operating%20Cash%20Flow%20and%20Cash%20Conversion%20Reconciliation) Free operating cash flow, a non-U.S. GAAP measure, indicates cash generated after capital expenditures, enabling strategic value creation. Cash conversion, also non-U.S. GAAP, evaluates the efficiency of converting net income into free operating cash flow - Free operating cash flow is a non-U.S. GAAP measure used to analyze cash flow generated after capital expenditure, net, indicating strategic value creation capacity[98](index=98&type=chunk) - Cash conversion is a non-U.S. GAAP measure used to analyze the proportion of net income converted into free operating cash flow, evaluating resource utilization efficiency[98](index=98&type=chunk) | (Dollars in millions) | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | Latest 12 months | Full Year 2024 | | :-------------------- | :------ | :------ | :------ | :------ | :--------------- | :------------- | | Operating cash flow | 258 | 177 | $613 | $639 | 1,033 | 1,059 | | Capital expenditure, net | (106) | (145) | (313) | (431) | (445) | (563) | | Free operating cash flow | $153 | $32 | $300 | $208 | $588 | $497 | | Cash conversion | 87% | 23% | 59% | 52% | 78% | 77% | [Items Affecting Comparability (ROCE, ROE)](index=22&type=section&id=Items%20Affecting%20Comparability%20%28ROCE%2C%20ROE%29) Autoliv provides adjusted non-U.S. GAAP measures for Return on Capital Employed (ROCE) and Return on Total Equity (ROE) to improve comparability between periods by excluding certain non-recurring items like capacity alignments and antitrust matters. These adjusted metrics help investors and analysts evaluate long-term performance and management's value creation - Adjusted non-U.S. GAAP measures for ROCE and ROE are provided to improve comparability between periods by excluding specific non-recurring items[100](index=100&type=chunk)[101](index=101&type=chunk) - ROCE and adjusted ROCE are indicators of long-term performance and profitability of capital employed, while ROE indicates management's value creation for shareholders[102](index=102&type=chunk)[103](index=103&type=chunk) | (Dollars in millions) | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------- | :------ | :------ | :------ | :------ | | Operating income (GAAP) | $267 | $226 | $769 | $626 | | Adjusted Operating income (Non-GAAP) | $271 | $237 | $777 | $657 | | Operating margin (GAAP) | 9.9% | 8.9% | 9.6% | 8.1% | | Adjusted Operating margin (Non-GAAP) | 10.0% | 9.3% | 9.7% | 8.5% | | Return on capital employed (GAAP) | 25.1% | 22.9% | 24.9% | 21.2% | | Adjusted Return on capital employed (Non-GAAP) | 25.5% | 23.9% | 25.2% | 22.1% | | Return on total equity (GAAP) | 27.9% | 24.1% | 28.1% | 22.4% | | Adjusted Return on total equity (Non-GAAP) | 28.3% | 25.3% | 28.4% | 23.7% | [Consolidated Financial Statements](index=15&type=section&id=Consolidated%20Financial%20Statements) This section presents Autoliv's official consolidated statements of income, balance sheets, and cash flow, detailing financial position and performance [Consolidated Statements of Income](index=15&type=section&id=Consolidated%20Statements%20of%20Income) The Consolidated Statements of Income for Q3 and the first nine months of 2025 show significant year-over-year growth in net sales, gross profit, operating income, and net income, reflecting strong operational performance | (Dollars in millions, except per share data, unaudited) | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | Latest 12 months | Full Year 2024 | | :---------------------------------------------------- | :------ | :------ | :------ | :------ | :--------------- | :------------- | | Total net sales | 2,706 | 2,555 | 7,998 | 7,774 | 10,614 | 10,390 | | Gross profit | 522 | 459 | 1,502 | 1,377 | 2,052 | 1,927 | | Operating income | 267 | 226 | 769 | 626 | 1,122 | 979 | | Income before income taxes | 240 | 197 | 693 | 554 | 1,015 | 875 | | Net income | 175 | 139 | 510 | 404 | 754 | 648 | | Earnings per share - diluted | $2.28 | $1.74 | $6.59 | $4.98 | $9.70 | $8.04 | [Consolidated Balance Sheets](index=16&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets as of September 30, 2025, show an increase in total assets and total equity compared to the prior year, indicating a strengthening financial position. Current assets and liabilities also saw changes, with cash and cash equivalents decreasing | (Dollars in millions, unaudited) | Sep 30 2025 | Jun 30 2025 | Mar 31 2025 | Dec 31 2024 | Sep 30 2024 | | :------------------------------- | :---------- | :---------- | :---------- | :---------- | :---------- | | Cash & cash equivalents | $225 | $237 | $322 | $330 | $415 | | Total current assets | 3,946 | 3,929 | 3,699 | 3,483 | 3,865 | | Total assets | 8,463 | 8,476 | 8,114 | 7,804 | 8,306 | | Total current liabilities | 4,141 | 4,235 | 3,800 | 3,633 | 4,034 | | Total equity | 2,559 | 2,480 | 2,361 | 2,285 | 2,298 | [Consolidated Statements of Cash Flow](index=17&type=section&id=Consolidated%20Statements%20of%20Cash%20Flow) The Consolidated Statements of Cash Flow highlight strong operating cash flow generation in Q3 2025, with a significant increase year-over-year. For the first nine months, operating cash flow saw a slight decrease, but investing activities showed reduced cash usage, contributing to overall cash management | (Dollars in millions, unaudited) | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | Latest 12 months | Full Year 2024 | | :------------------------------- | :------ | :------ | :------ | :------ | :--------------- | :------------- | | Net cash provided by operating activities | 258 | 177 | 613 | 639 | 1,033 | 1,059 | | Net cash used in investing activities | (106) | (145) | (313) | (431) | (445) | (563) | | Net cash (used in) provided by financing activities | (146) | 11 | (316) | (259) | (738) | (680) | | (Decrease) increase in cash and cash equivalents | (12) | 6 | (105) | (84) | (190) | (168) | | Cash and cash equivalents at period-end | $225 | $415 | $225 | $415 | $225 | $330 | [Other Information](index=13&type=section&id=Other%20Information) This section covers recent strategic initiatives, future reporting, essential definitions, SEC filings, and the company's safe harbor statement [Recent Strategic Developments](index=13&type=section&id=Recent%20Strategic%20Developments) Autoliv announced several strategic initiatives in October 2025, including a partnership with CATARC to advance automotive safety standards in China, a joint venture with HSAE for advanced safety electronics development and manufacturing, and the groundbreaking of a new R&D center in Wuhan, China. The company also continued its share repurchase program in Q3 2025 - On October 14, 2025, Autoliv signed a strategic agreement with CATARC to jointly advance automotive safety standards and innovation in China, providing technical support for Chinese OEMs' R&D and global expansion[84](index=84&type=chunk) - On October 9, 2025, Autoliv announced intent to form a new joint venture with HSAE to develop and manufacture advanced safety electronics for the Chinese automotive market, focusing on products like Hands-On Detection (HOD) and Pre-Pretensioner Mechatronic Integration (PPMI)[84](index=84&type=chunk) - On July 27, 2025, Autoliv China held the groundbreaking ceremony for its new R&D center in Wuhan, China, scheduled to begin operations in Q3 2026, to support the global growth of Chinese OEMs[84](index=84&type=chunk) - In Q3 2025, Autoliv repurchased and retired **0.84 million shares** of common stock for **$100 million** under the 2029 stock repurchase program[84](index=84&type=chunk) [Next Report & Inquiries](index=13&type=section&id=Next%20Report%20%26%20Inquiries) Autoliv plans to release its Q4 2025 earnings report on January 30, 2026. Contact information for investor relations and media inquiries is provided - Autoliv intends to publish the quarterly earnings report for the fourth quarter of 2025 on Friday, January 30, 2026[79](index=79&type=chunk) - Inquiries can be directed to Anders Trapp (VP Investor Relations), Henrik Kaar (Director Investor Relations), or Gabriella Etemad (SVP Communications)[80](index=80&type=chunk) [Definitions and SEC Filings](index=13&type=section&id=Definitions%20and%20SEC%20Filings) Definitions of terms used in the report are available on Autoliv's website or in its Annual Report. The company's SEC filings, including 10-K, 10-Q, and 8-K reports, are accessible free of charge from Autoliv and on the SEC's website - Definitions of terms used in this report are available on www.autoliv.com or in the Annual Report[82](index=82&type=chunk) - Autoliv's SEC filings (10-K, 10-Q, 8-K, etc.) can be obtained free of charge from Autoliv or at www.sec.gov and www.autoliv.com[82](index=82&type=chunk) [Safe Harbor Statement](index=14&type=section&id=Safe%20Harbor%20Statement) This report contains forward-looking statements subject to known and unknown risks, uncertainties, and other factors that may cause actual future results to differ materially from expectations. Autoliv claims the protection of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and assumes no obligation to update these statements, except as required by law - The report contains forward-looking statements based on current expectations, assumptions, and third-party data, which are subject to known and unknown risks and uncertainties[85](index=85&type=chunk) - Actual future results, performance, or achievements may differ materially due to various factors, including general economic conditions, changes in LVP, supply chain disruptions, geopolitical instability, and regulatory changes[85](index=85&type=chunk) - Autoliv claims the protection of the safe harbor for forward-looking statements under the Private Securities Litigation Reform Act of 1995 and does not assume any obligation to update or revise these statements, except as legally required[85](index=85&type=chunk) [Historical Financial Data](index=26&type=section&id=Historical%20Financial%20Data) This section provides a five-year historical overview of Autoliv's key financial metrics from 2020 to 2024, offering performance context [Full Year Financial Summary (2020-2024)](index=26&type=section&id=Full%20Year%20Financial%20Summary%20%282020-2024%29) This section provides a five-year historical overview of Autoliv's key financial metrics from 2020 to 2024, covering sales, income, balance sheet items, and cash flow. It highlights trends in net sales, operating income, net income, and various ratios, offering context for the company's performance | (Dollars in millions, except per share data, unaudited) | 2024 | 2023 | 2022 | 2021 | 2020 | | :---------------------------------------------------- | :------ | :------ | :------ | :------ | :------ | | Net sales | $10,390 | $10,475 | $8,842 | $8,230 | $7,447 | | Operating income | 979 | 690 | 659 | 675 | 382 | | Net income attributable to controlling interest | 646 | 488 | 423 | 435 | 187 | | Earnings per share – diluted | 8.04 | 5.72 | 4.85 | 4.96 | 2.14 | | Gross margin | 18.5% | 17.4% | 15.8% | 18.4% | 16.7% | | Operating margin | 9.4% | 6.6% | 7.5% | 8.2% | 5.1% | | Adjusted operating margin | 9.7% | 8.8% | 6.8% | 8.3% | 6.5% | | Trade working capital | 1,115 | 1,232 | 1,183 | 1,332 | 1,366 | | Total equity | 2,285 | 2,570 | 2,626 | 2,648 | 2,423 | | Net debt | 1,554 | 1,367 | 1,184 | 1,052 | 1,214 | | Operating cash flow | 1,059 | 982 | 713 | 754 | 849 | | Free operating cash flow | 497 | 414 | 228 | 300 | 509 | | Cash conversion | 77% | 85% | 54% | 69% | 270% |

[**Financial Highlights**](index=3&type=section&id=Financial%20Highlights) [**Earnings Summary**](index=3&type=section&id=Earnings%20Summary) The company reported an increase in net income and diluted EPS for the third quarter of 2025 compared to the previous quarter and the prior year, indicating improved profitability Earnings Metrics | Metric | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :----------------------------------- | :-------- | :-------- | :-------- | | Net income (millions) | $569 | $563 | $490 | | Net income available to common shareholders (millions) | $548 | $534 | $446 | | Diluted earnings per common share | $0.61 | $0.59 | $0.49 | - Adjusted diluted earnings per common share (non-GAAP) **increased** to **$0.63** in Q3 2025 from **$0.60** in Q2 2025 and **$0.57** in Q3 2024[4](index=4&type=chunk) [**Balance Sheet Summary**](index=3&type=section&id=Balance%20Sheet%20Summary) The balance sheet showed a slight increase in total assets and shareholders' equity, while loans and deposits experienced minor fluctuations in Q3 2025 Balance Sheet Metrics | Metric | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :----------------------------------- | :-------- | :-------- | :-------- | | Loans, net of unearned income (millions) | $96,125 | $96,723 | $96,789 | | Assets (millions) | $159,940 | $159,206 | $157,426 | | Deposits (millions) | $130,334 | $130,919 | $126,376 | | Shareholders' equity (millions) | $19,049 | $18,666 | $18,676 | - Average loans, net of unearned income, **increased** to **$96,647 million** in Q3 2025 from **$96,077 million** in Q2 2025, but **decreased** from **$97,040 million** in Q3 2024[4](index=4&type=chunk) [**Selected Ratios and Other Information**](index=4&type=section&id=Selected%20Ratios%20and%20Other%20Information) [**Key Financial Ratios**](index=4&type=section&id=Key%20Financial%20Ratios) Profitability ratios showed mixed trends, with Return on Average Assets slightly decreasing QoQ but increasing YoY. Efficiency ratios fluctuated, while capital adequacy ratios remained stable or improved Key Financial Ratios Overview | Metric | 9/30/2025 (%) | 6/30/2025 (%) | 9/30/2024 (%) | | :----------------------------------- | :-------- | :-------- | :-------- | | Return on average assets | 1.42 % | 1.43 % | 1.26 % |\ | Return on average common shareholders' equity | 12.56 % | 12.72 % | 10.88 % |\ | Efficiency ratio | 57.2 % | 56.0 % | 59.3 % |\ | Common equity Tier 1 ratio | 10.8 % | 10.8 % | 10.6 % |\ | Net interest margin (FTE) | 3.59 % | 3.65 % | 3.54 % |\ | Net charge-offs as a percentage of average loans | 0.55 % | 0.47 % | 0.48 % | - The dividend payout ratio for Q3 2025 was **43.0%**, an **increase** from **42.0%** in Q2 2025 but a **decrease** from **51.3%** in Q3 2024[6](index=6&type=chunk) - Tangible common book value per share (non-GAAP) **increased** to **$13.49** in Q3 2025 from **$12.91** in Q2 2025 and **$12.26** in Q3 2024[6](index=6&type=chunk) [**Operational Metrics**](index=4&type=section&id=Operational%20Metrics) Operational metrics show a slight increase in associate headcount and a minor reduction in ATMs and total branch outlets Operational Metrics Overview | Metric | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :----------------------------------- | :-------- | :-------- | :-------- | | Associate headcount—full-time equivalent | 19,675 | 19,642 | 19,560 |\ | ATMs | 1,874 | 1,996 | 2,019 |\ | Total branch outlets | 1,248 | 1,250 | 1,261 | [**Consolidated Balance Sheets**](index=5&type=section&id=Consolidated%20Balance%20Sheets) [**Assets**](index=5&type=section&id=Assets) Total assets increased slightly in Q3 2025, driven by higher interest-bearing deposits in other banks and debt securities held to maturity, while net loans saw a minor decrease Consolidated Assets | Asset Category | 9/30/2025 (millions) | 6/30/2025 (millions) | 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------- | :------------------- | | Cash and due from banks | $3,073 | $3,245 | $2,665 |\ | Interest-bearing deposits in other banks | $9,026 | $7,930 | $7,856 |\ | Debt securities held to maturity | $5,769 | $5,972 | $2,787 |\ | Debt securities available for sale | $26,886 | $26,333 | $28,698 |\ | Loans, net of unearned income | $96,125 | $96,723 | $96,789 |\ | Total assets | $159,940 | $159,206 | $157,426 | [**Liabilities and Equity**](index=5&type=section&id=Liabilities%20and%20Equity) Total deposits experienced a slight decline in Q3 2025, primarily in non-interest-bearing and time deposits, while shareholders' equity increased due to higher retained earnings and a reduction in accumulated other comprehensive loss Consolidated Liabilities and Equity | Liability/Equity Category | 9/30/2025 (millions) | 6/30/2025 (millions) | 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------- | :------------------- | | Non-interest-bearing deposits | $39,768 | $40,209 | $39,698 |\ | Interest-bearing deposits | $90,566 | $90,710 | $86,678 |\ | Total deposits | $130,334 | $130,919 | $126,376 |\ | Short-term borrowings | $1,300 | $— | $1,500 |\ | Long-term borrowings | $4,785 | $5,279 | $6,016 |\ | Total liabilities | $140,845 | $140,500 | $138,699 |\ | Total shareholders' equity | $19,049 | $18,666 | $18,676 | - Accumulated other comprehensive income (loss), net, **improved** from **$(1,967) million** in Q2 2025 to **$(1,660) million** in Q3 2025[9](index=9&type=chunk) [**Loans**](index=6&type=section&id=Loans) [**End of Period Loans**](index=6&type=section&id=End%20of%20Period%20Loans) Total end-of-period loans decreased slightly in Q3 2025, primarily driven by declines in commercial and industrial, owner-occupied commercial real estate, and other consumer loans, partially offset by growth in commercial investor real estate mortgage and consumer credit card portfolios End of Period Loan Balances | Loan Category | 9/30/2025 (millions) | Change vs. 6/30/2025 (millions) | Change vs. 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------------------ | :------------------------------ | | Commercial and industrial | $49,234 | $(352) (-0.7%) | $(331) (-0.7%) |\ | Commercial investor real estate mortgage | $7,122 | $173 (2.5%) | $560 (8.5%) |\ | Residential first mortgage | $19,881 | $(139) (-0.7%) | $(244) (-1.2%) |\ | Consumer credit card | $1,437 | $22 (1.6%) | $65 (4.7%) |\ | Other consumer | $5,834 | $(69) (-1.2%) | $(333) (-5.4%) |\ | Total Loans | $96,125 | $(598) (-0.6%) | $(664) (-0.7%) | Loan Portfolio Composition | Loan Category (Percentage) | 9/30/2025 (%) | 6/30/2025 (%) | 9/30/2024 (%) | | :----------------------------------- | :-------- | :-------- | :-------- | | Total business | 66.0 % | 66.0 % | 65.7 % |\ | Total consumer | 34.0 % | 34.0 % | 34.3 % | [**Average Balances of Loans**](index=7&type=section&id=Average%20Balances%20of%20Loans) Average loan balances for Q3 2025 showed a slight increase QoQ, primarily in business loans, but a decrease YoY. Year-to-date average loan balances for 2025 were lower than 2024 Average Loan Balances (Quarterly) | Loan Category (Average Balances) | 3Q25 (millions) | Change vs. 2Q25 (millions) | Change vs. 3Q24 (millions) | | :----------------------------------- | :-------------- | :------------------------- | :------------------------- | | Commercial and industrial | $49,588 | $555 (1.1%) | $(259) (-0.5%) |\ | Commercial investor real estate mortgage | $7,087 | $282 (4.1%) | $592 (9.1%) |\ | Total business | $63,860 | $648 (1.0%) | $42 (0.1%) |\ | Total consumer | $32,787 | $(78) (-0.2%) | $(435) (-1.3%) |\ | Total Loans | $96,647 | $570 (0.6%) | $(393) (-0.4%) | Average Loan Balances (Year-to-Date) | Loan Category (Average Balances YTD) | 2025 (millions) | Change vs. 2024 (millions) | | :----------------------------------- | :-------------- | :------------------------- | | Total business | $63,406 | $(551) (-0.9%) |\ | Total consumer | $32,878 | $(411) (-1.2%) |\ | Total Loans | $96,284 | $(962) (-1.0%) | [**Deposits**](index=8&type=section&id=Deposits) [**End of Period Deposits**](index=8&type=section&id=End%20of%20Period%20Deposits) Total end-of-period deposits decreased slightly QoQ but increased YoY, with notable growth in money market deposits and a decline in time deposits. Corporate Bank and Wealth Management segments showed deposit growth YoY End of Period Deposit Balances | Deposit Type | 9/30/2025 (millions) | Change vs. 6/30/2025 (millions) | Change vs. 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------------------ | :------------------------------ | | Non-interest-bearing deposits | $39,768 | $(441) (-1.1%) | $70 (0.2%) |\ | Money market—domestic | $39,051 | $526 (1.4%) | $3,846 (10.9%) |\ | Time deposits | $14,902 | $(392) (-2.6%) | $(782) (-5.0%) |\ | Total Deposits | $130,334 | $(585) (-0.4%) | $3,958 (3.1%) | Segment Deposit Balances | Segment Deposits | 9/30/2025 (millions) | Change vs. 6/30/2025 (millions) | Change vs. 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------------------ | :------------------------------ | | Consumer Bank Segment | $79,689 | $(264) (-0.3%) | $831 (1.1%) |\ | Corporate Bank Segment | $40,415 | $314 (0.8%) | $3,460 (9.4%) |\ | Wealth Management Segment | $7,654 | $302 (4.1%) | $134 (1.8%) | - Non-interest-bearing deposits as a percentage of total deposits **decreased** to **30.5%** in Q3 2025 from **30.7%** in Q2 2025 and **31.4%** in Q3 2024[17](index=17&type=chunk) [**Average Balances of Deposits**](index=9&type=section&id=Average%20Balances%20of%20Deposits) Average deposit balances showed a slight QoQ increase and a more significant YoY increase. Money market deposits were a key driver of growth, while non-interest-bearing and time deposits saw declines Average Deposit Balances (Quarterly) | Deposit Type (Average Balances) | 3Q25 (millions) | Change vs. 2Q25 (millions) | Change vs. 3Q24 (millions) | | :----------------------------------- | :-------------- | :------------------------- | :------------------------- | | Non-interest-bearing deposits | $39,538 | $(18) (—%) | $(152) (-0.4%) |\ | Money market—domestic | $38,593 | $1,204 (3.2%) | $3,542 (10.1%) |\ | Time deposits | $15,124 | $(210) (-1.4%) | $(303) (-2.0%) |\ | Total Deposits | $129,575 | $131 (0.1%) | $3,625 (2.9%) | Average Deposit Balances (Year-to-Date) | Segment Deposits (Average Balances YTD) | 2025 (millions) | Change vs. 2024 (millions) | | :----------------------------------- | :-------------- | :------------------------- | | Corporate Bank Segment | $39,098 | $2,231 (6.1%) |\ | Total Deposits | $128,909 | $2,253 (1.8%) | [**Consolidated Statements of Income**](index=10&type=section&id=Consolidated%20Statements%20of%20Income) [**Quarter Ended**](index=10&type=section&id=Quarter%20Ended) For Q3 2025, net interest income slightly decreased QoQ but increased YoY, while non-interest income saw a notable increase. Provision for credit losses decreased, contributing to higher net income Consolidated Statements of Income (Quarterly) | Metric | 9/30/2025 (millions) | 6/30/2025 (millions) | 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------- | :------------------- | | Total interest income | $1,796 | $1,784 | $1,820 |\ | Total interest expense | $539 | $525 | $602 |\ | Net interest income | $1,257 | $1,259 | $1,218 |\ | Provision for credit losses | $105 | $126 | $113 |\ | Non-interest income | $659 | $646 | $572 |\ | Non-interest expense | $1,103 | $1,073 | $1,069 |\ | Net income | $569 | $563 | $490 | - Interest income on loans, including fees, was **$1,386 million** in Q3 2025, a **slight increase** from **$1,377 million** in Q2 2025 but a **decrease** from **$1,463 million** in Q3 2024[20](index=20&type=chunk) - Interest expense on deposits **increased** to **$456 million** in Q3 2025 from **$447 million** in Q2 2025, but **decreased** from **$507 million** in Q3 2024[20](index=20&type=chunk) [**Nine Months Ended September 30**](index=11&type=section&id=Nine%20Months%20Ended%20September%2030) For the nine months ended September 30, 2025, net interest income and non-interest income increased significantly compared to the same period in 2024, leading to higher net income and diluted EPS Consolidated Statements of Income (Year-to-Date) | Metric | 2025 (millions) | 2024 (millions) | Change (millions) | Change (%) | | :----------------------------------- | :-------------- | :-------------- | :---------------- | :--------- | | Total interest income | $5,305 | $5,306 | $(1) | (0.0%) |\ | Total interest expense | $1,595 | $1,718 | $(123) | (7.2%) |\ | Net interest income | $3,710 | $3,588 | $122 | 3.4% |\ | Provision for credit losses | $355 | $367 | $(12) | (3.3%) |\ | Non-interest income | $1,895 | $1,680 | $215 | 12.8% |\ | Non-interest expense | $3,215 | $3,204 | $11 | 0.3% |\ | Net income | $1,622 | $1,359 | $263 | 19.4% |\ | Diluted earnings per common share | $1.72 | $1.38 | $0.34 | 24.6% | - Interest income on debt securities **increased** by **$176 million** (**26.3%**) year-to-date 2025 compared to 2024[23](index=23&type=chunk) [**Consolidated Average Daily Balances and Yield / Rate Analysis**](index=12&type=section&id=Consolidated%20Average%20Daily%20Balances%20and%20Yield%20%2F%20Rate%20Analysis) [**Quarter Ended Yield/Rate Analysis**](index=12&type=section&id=Quarter%20Ended%20Yield%2FRate%20Analysis) For Q3 2025, the yield on total earning assets slightly decreased QoQ, while the rate on total interest-bearing liabilities slightly increased. Net interest spread and net interest margin (FTE) both saw minor declines QoQ Yield and Rate Analysis (Quarterly) | Metric | 9/30/2025 (%) | 6/30/2025 (%) | 9/30/2024 (%) | | :----------------------------------- | :-------- | :-------- | :-------- | | Yield on Total earning assets | 5.09 % | 5.12 % | 5.26 % |\ | Rate on Total interest-bearing liabilities | 2.22 % | 2.20 % | 2.59 % |\ | Net interest spread | 2.87 % | 2.92 % | 2.67 % |\ | Net interest income/margin FTE basis | 3.59 % | 3.65 % | 3.54 % | - The yield on commercial and industrial loans **decreased** to **5.65%** in Q3 2025 from **5.72%** in Q2 2025 and **6.14%** in Q3 2024[24](index=24&type=chunk)[28](index=28&type=chunk) - The rate for total deposit costs **remained stable** at **1.39%** in Q3 2025 compared to Q2 2025, but **decreased** from **1.60%** in Q3 2024[26](index=26&type=chunk)[31](index=31&type=chunk) [**Nine Months Ended September 30 Yield/Rate Analysis**](index=14&type=section&id=Nine%20Months%20Ended%20September%2030%20Yield%2FRate%20Analysis) For the nine months ended September 30, 2025, the yield on total earning assets slightly decreased compared to 2024, while the rate on total interest-bearing liabilities also decreased. Net interest spread improved, and net interest margin (FTE) increased Yield and Rate Analysis (Year-to-Date) | Metric | 2025 (%) | 2024 (%) | | :----------------------------------- | :--- | :--- | | Yield on Total earning assets | 5.08 % | 5.19 % |\ | Rate on Total interest-bearing liabilities | 2.23 % | 2.53 % |\ | Net interest spread | 2.85 % | 2.66 % |\ | Net interest income/margin FTE basis | 3.59 % | 3.54 % | - The yield on commercial and industrial loans **decreased** to **5.65%** year-to-date 2025 from **6.06%** in 2024[33](index=33&type=chunk) - Total deposit costs **decreased** to **1.39%** year-to-date 2025 from **1.58%** in 2024[35](index=35&type=chunk) [**Pre-Tax Pre-Provision Income ("PPI") and Adjusted PPI (non-GAAP)**](index=15&type=section&id=Pre-Tax%20Pre-Provision%20Income%20%28%22PPI%22%29%20and%20Adjusted%20PPI%20%28non-GAAP%29) [**Pre-Tax Pre-Provision Income Analysis**](index=15&type=section&id=Pre-Tax%20Pre-Provision%20Income%20Analysis) Pre-tax pre-provision income (non-GAAP) decreased QoQ but increased YoY, while adjusted pre-tax pre-provision income (non-GAAP) remained relatively stable QoQ and increased YoY, after accounting for various adjustments Pre-Tax Pre-Provision Income Reconciliation | Metric | 9/30/2025 (millions) | 6/30/2025 (millions) | 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------- | :------------------- | | Income before income taxes (GAAP) | $708 | $706 | $608 |\ | Provision for credit losses (GAAP) | $105 | $126 | $113 |\ | Pre-tax pre-provision income (non-GAAP) | $813 | $832 | $721 |\ | Adjusted pre-tax pre-provision income (non-GAAP) | $830 | $832 | $799 | - Total other adjustments, including securities gains/losses and FDIC insurance special assessment, **significantly impacted** the reconciliation from PPI to Adjusted PPI, with a **$17 million positive adjustment** in Q3 2025[37](index=37&type=chunk) - Securities (gains) losses, net, showed a **gain of $25 million** in Q3 2025, compared to zero in Q2 2025 and a **loss of $78 million** in Q3 2024[37](index=37&type=chunk) [**Non-Interest Income, Service Charges on Deposit Accounts by Segment, Wealth Management Income, Capital Markets Income, and Mortgage Income**](index=16&type=section&id=Non-Interest%20Income%2C%20Service%20Charges%20on%20Deposit%20Accounts%20by%20Segment%2C%20Wealth%20Management%20Income%2C%20Capital%20Markets%20Income%2C%20and%20Mortgage%20Income) [**Quarterly Non-Interest Income**](index=16&type=section&id=Quarterly%20Non-Interest%20Income) Total non-interest income increased QoQ and YoY, driven by strong performance in service charges on deposit accounts, wealth management income, and capital markets income, despite a decrease in mortgage income Non-Interest Income (Quarterly) | Income Category | 9/30/2025 (millions) | Change vs. 6/30/2025 (millions) | Change vs. 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------------------ | :------------------------------ | | Service charges on deposit accounts | $160 | $9 (6.0%) | $2 (1.3%) |\ | Wealth management income | $139 | $6 (4.5%) | $11 (8.6%) |\ | Capital markets income | $104 | $21 (25.3%) | $12 (13.0%) |\ | Mortgage income | $38 | $(10) (-20.8%) | $2 (5.6%) |\ | Securities gains (losses), net | $(27) | $(26) (NM) | $51 (65.4%) |\ | Total non-interest income | $659 | $13 (2.0%) | $87 (15.2%) | - Other miscellaneous income **increased significantly** by **$20 million** (**52.6%**) QoQ to **$58 million** in Q3 2025[39](index=39&type=chunk) [**Quarterly Service Charges on Deposit Accounts by Segment**](index=16&type=section&id=Quarterly%20Service%20Charges%20on%20Deposit%20Accounts%20by%20Segment) Service charges on deposit accounts increased QoQ, primarily driven by the Consumer Bank Segment, while the Corporate Bank Segment also showed growth Service Charges on Deposit Accounts by Segment (Quarterly) | Segment | 9/30/2025 (millions) | Change vs. 6/30/2025 (millions) | Change vs. 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------------------ | :------------------------------ | | Consumer Bank Segment | $99 | $9 (10.0%) | $(1) (-1.0%) |\ | Corporate Bank Segment | $61 | $1 (1.7%) | $3 (5.2%) |\ | Total service charges on deposit accounts | $160 | $9 (6.0%) | $2 (1.3%) | - Consumer overdraft fees represent approximately **half** of the Consumer Bank Segment's service charges on deposit accounts each quarter[44](index=44&type=chunk) [**Quarterly Wealth Management Income**](index=16&type=section&id=Quarterly%20Wealth%20Management%20Income) Wealth management income increased QoQ and YoY, with both investment management and trust fee income and investment services fee income contributing to the growth Wealth Management Income (Quarterly) | Income Type | 9/30/2025 (millions) | Change vs. 6/30/2025 (millions) | Change vs. 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------------------ | :------------------------------ | | Investment management and trust fee income | $91 | $1 (1.1%) | $6 (7.1%) |\ | Investment services fee income | $48 | $5 (11.6%) | $5 (11.6%) |\ | Total wealth management income | $139 | $6 (4.5%) | $11 (8.6%) | [**Quarterly Capital Markets Income**](index=16&type=section&id=Quarterly%20Capital%20Markets%20Income) Capital markets income showed significant QoQ and YoY growth, indicating strong performance in capital raising activities Capital Markets Income (Quarterly) | Income Type | 9/30/2025 (millions) | Change vs. 6/30/2025 (millions) | Change vs. 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------------------ | :------------------------------ | | Capital markets income | $104 | $21 (25.3%) | $12 (13.0%) |\ | Capital markets income excluding valuation adjustments | $104 | $19 (22.4%) | $11 (11.8%) | - Capital markets income **primarily relates to** debt securities underwriting and placement, loan syndication, foreign exchange, derivatives, and M&A advisory services[43](index=43&type=chunk) [**Quarterly Mortgage Income**](index=16&type=section&id=Quarterly%20Mortgage%20Income) Mortgage income decreased QoQ but increased YoY, primarily due to a significant negative MSR and related hedge impact, despite stable production and sales and loan servicing income Mortgage Income (Quarterly) | Income Type | 9/30/2025 (millions) | Change vs. 6/30/2025 (millions) | Change vs. 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------------------ | :------------------------------ | | Production and sales | $17 | $— (—%) | $1 (6.3%) |\ | Loan servicing | $47 | $— (—%) | $(6) (-11.3%) |\ | MSR and related hedge impact | $(26) | $(10) (-62.5%) | $7 (21.2%) |\ | Total mortgage income | $38 | $(10) (-20.8%) | $2 (5.6%) | - Total mortgage production **decreased** by **$149 million** (**-13.3%**) QoQ to **$969 million** in Q3 2025[43](index=43&type=chunk) [**Year-to-Date Non-Interest Income**](index=17&type=section&id=Year-to-Date%20Non-Interest%20Income) Total non-interest income for the nine months ended September 30, 2025, increased significantly YoY, driven by strong growth across most categories, particularly securities gains (losses), net, wealth management, and capital markets income Non-Interest Income (Year-to-Date) | Income Category | 9/30/2025 (millions) | 9/30/2024 (millions) | Change (millions) | Change (%) | | :----------------------------------- | :------------------- | :------------------- | :---------------- | :--------- | | Service charges on deposit accounts | $472 | $457 | $15 | 3.3% |\ | Wealth management income | $401 | $369 | $32 | 8.7% |\ | Capital markets income | $267 | $251 | $16 | 6.4% |\ | Mortgage income | $126 | $111 | $15 | 13.5% |\ | Securities gains (losses), net | $(53) | $(178) | $125 | 70.2% |\ | Total non-interest income | $1,895 | $1,680 | $215 | 12.8% | [**Year-to-Date Service Charges on Deposit Accounts by Segment**](index=17&type=section&id=Year-to-Date%20Service%20Charges%20on%20Deposit%20Accounts%20by%20Segment) Year-to-date service charges on deposit accounts increased YoY, primarily due to growth in the Corporate Bank Segment, while the Consumer Bank Segment saw a slight decrease Service Charges on Deposit Accounts by Segment (Year-to-Date) | Segment | 9/30/2025 (millions) | 9/30/2024 (millions) | Change (millions) | Change (%) | | :----------------------------------- | :------------------- | :------------------- | :---------------- | :--------- | | Consumer Bank Segment | $285 | $287 | $(2) | (0.7%) |\ | Corporate Bank Segment | $185 | $167 | $18 | 10.8% |\ | Total service charges on deposit accounts | $472 | $457 | $15 | 3.3% | [**Year-to-Date Wealth Management Income**](index=17&type=section&id=Year-to-Date%20Wealth%20Management%20Income) Year-to-date wealth management income increased YoY, with both investment management and trust fee income and investment services fee income contributing to the growth Wealth Management Income (Year-to-Date) | Income Type | 9/30/2025 (millions) | 9/30/2024 (millions) | Change (millions) | Change (%) | | :----------------------------------- | :------------------- | :------------------- | :---------------- | :--------- | | Investment management and trust fee income | $267 | $249 | $18 | 7.2% |\ | Investment services fee income | $134 | $120 | $14 | 11.7% |\ | Total wealth management income | $401 | $369 | $32 | 8.7% | [**Year-to-Date Capital Markets Income**](index=17&type=section&id=Year-to-Date%20Capital%20Markets%20Income) Year-to-date capital markets income increased YoY, reflecting strong performance in capital markets activities Capital Markets Income (Year-to-Date) | Income Type | 9/30/2025 (millions) | 9/30/2024 (millions) | Change (millions) | Change (%) | | :----------------------------------- | :------------------- | :------------------- | :---------------- | :--------- | | Capital markets income | $267 | $251 | $16 | 6.4% |\ | Capital markets income excluding valuation adjustments | $270 | $256 | $14 | 5.5% | [**Year-to-Date Mortgage Income**](index=17&type=section&id=Year-to-Date%20Mortgage%20Income) Year-to-date mortgage income increased YoY, primarily due to an improved MSR and related hedge impact, offsetting a decline in production and sales income Mortgage Income (Year-to-Date) | Income Type | 9/30/2025 (millions) | 9/30/2024 (millions) | Change (millions) | Change (%) | | :----------------------------------- | :------------------- | :------------------- | :---------------- | :--------- | | Production and sales | $47 | $56 | $(9) | (16.1%) |\ | Loan servicing | $141 | $143 | $(2) | (1.4%) |\ | MSR and related hedge impact | $(62) | $(88) | $26 | 29.5% |\ | Total mortgage income | $126 | $111 | $15 | 13.5% | - Total mortgage production **remained relatively stable** year-to-date, with portfolio production **increasing** by **5.3%** and agency/secondary market production **decreasing** by **4.8%**[51](index=51&type=chunk) [**Non-Interest Expense**](index=18&type=section&id=Non-Interest%20Expense) [**Quarterly Non-Interest Expense**](index=18&type=section&id=Quarterly%20Non-Interest%20Expense) Total non-interest expense increased QoQ and YoY, primarily driven by higher salaries and employee benefits, outside services, and professional, legal and regulatory expenses Non-Interest Expense (Quarterly) | Expense Category | 9/30/2025 (millions) | Change vs. 6/30/2025 (millions) | Change vs. 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------------------ | :------------------------------ | | Salaries and employee benefits | $671 | $13 (2.0%) | $26 (4.0%) |\ | Equipment and software expense | $106 | $2 (1.9%) | $5 (5.0%) |\ | Outside services | $42 | $3 (7.7%) | $1 (2.4%) |\ | Professional, legal and regulatory expenses | $30 | $2 (7.1%) | $9 (42.9%) |\ | FDIC insurance assessments | $15 | $(5) (-25.0%) | $(2) (-11.8%) |\ | Total non-interest expense | $1,103 | $30 (2.8%) | $34 (3.2%) | - Visa class B shares expense **increased significantly** by **$4 million** (**100.0%**) QoQ to **$8 million** in Q3 2025, but **decreased** by **$9 million** (**-52.9%**) YoY[54](index=54&type=chunk) [**Quarterly Salaries and Benefits Expense**](index=18&type=section&id=Quarterly%20Salaries%20and%20Benefits%20Expense) Salaries and employee benefits expense increased QoQ and YoY. Excluding market value adjustments on 401(k) liabilities, the increase was more pronounced Salaries and Benefits Expense (Quarterly) | Expense Type | 9/30/2025 (millions) | Change vs. 6/30/2025 (millions) | Change vs. 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------------------ | :------------------------------ | | Salaries and employee benefits | $671 | $13 (2.0%) | $26 (4.0%) |\ | Salaries and employee benefits less market value adjustments on employee benefits liabilities | $658 | $16 (2.5%) | $25 (3.9%) | [**Year-to-Date Non-Interest Expense**](index=18&type=section&id=Year-to-Date%20Non-Interest%20Expense) Total non-interest expense for the nine months ended September 30, 2025, remained relatively stable YoY, with increases in salaries and employee benefits and professional, legal and regulatory expenses offset by decreases in FDIC insurance assessments and operational losses Non-Interest Expense (Year-to-Date) | Expense Category | 9/30/2025 (millions) | 9/30/2024 (millions) | Change (millions) | Change (%) | | :----------------------------------- | :------------------- | :------------------- | :---------------- | :--------- | | Salaries and employee benefits | $1,954 | $1,912 | $42 | 2.2% |\ | Professional, legal and regulatory expenses | $81 | $74 | $7 | 9.5% |\ | FDIC insurance assessments | $55 | $89 | $(34) | (38.2%) |\ | Operational losses | $44 | $79 | $(35) | (44.3%) |\ | Total non-interest expense | $3,215 | $3,204 | $11 | 0.3% | [**Year-to-Date Salaries and Benefits Expense**](index=18&type=section&id=Year-to-Date%20Salaries%20and%20Benefits%20Expense) Year-to-date salaries and employee benefits expense increased YoY. Excluding market value adjustments on 401(k) liabilities, the increase was slightly higher Salaries and Benefits Expense (Year-to-Date) | Expense Type | 9/30/2025 (millions) | 9/30/2024 (millions) | Change (millions) | Change (%) | | :----------------------------------- | :------------------- | :------------------- | :---------------- | :--------- | | Salaries and employee benefits | $1,954 | $1,912 | $42 | 2.2% |\ | Salaries and employee benefits less market value adjustments on employee benefits liabilities | $1,926 | $1,878 | $48 | 2.6% | [**Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures**](index=19&type=section&id=Reconciliation%20of%20GAAP%20Financial%20Measures%20to%20non-GAAP%20Financial%20Measures) [**Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income/Expense, Adjusted Operating Leverage Ratios, and Adjusted Total Revenue (Quarterly)**](index=19&type=section&id=Adjusted%20Efficiency%20Ratios%2C%20Adjusted%20Fee%20Income%20Ratios%2C%20Adjusted%20Non-Interest%20Income%2FExpense%2C%20Adjusted%20Operating%20Leverage%20Ratios%2C%20and%20Adjusted%20Total%20Revenue%20%28Quarterly%29) For Q3 2025, the adjusted efficiency ratio slightly increased QoQ but remained stable YoY. Adjusted total revenue (non-GAAP) increased QoQ and YoY, while adjusted non-interest expense (non-GAAP) also increased Adjusted Financial Ratios and Revenue (Quarterly) | Metric | 9/30/2025 (%) | 6/30/2025 (%) | 9/30/2024 (%) | | :----------------------------------- | :-------- | :-------- | :-------- | | Adjusted non-interest expense (non-GAAP) | $1,111 | $1,073 | $1,069 |\ | Adjusted total revenue (non-GAAP) | $1,941 | $1,905 | $1,868 |\ | Adjusted efficiency ratio (non-GAAP) | 56.9 % | 56.0 % | 56.9 % |\ | Adjusted fee income ratio (non-GAAP) | 35.0 % | 33.7 % | 34.6 % | - Adjusted operating leverage ratio (non-GAAP) was **(1.7)%** in Q3 2025, compared to **0%** in Q3 2024[59](index=59&type=chunk) [**Adjusted Efficiency Ratios, Adjusted Fee Income Ratios, Adjusted Non-Interest Income/Expense, Adjusted Operating Leverage Ratios, and Adjusted Total Revenue (YTD)**](index=20&type=section&id=Adjusted%20Efficiency%20Ratios%2C%20Adjusted%20Fee%20Income%20Ratios%2C%20Adjusted%20Non-Interest%20Income%2FExpense%2C%20Adjusted%20Operating%20Leverage%20Ratios%2C%20and%20Adjusted%20Total%20Revenue%20%28YTD%29) For the nine months ended September 30, 2025, the adjusted efficiency ratio (non-GAAP) improved YoY. Adjusted total revenue (non-GAAP) and adjusted non-interest expense (non-GAAP) both increased YoY Adjusted Financial Ratios and Revenue (Year-to-Date) | Metric | 2025 (%) | 2024 (%) | | :----------------------------------- | :--- | :--- | | Adjusted non-interest expense (non-GAAP) | $3,219 | $3,198 |\ | Adjusted total revenue (non-GAAP) | $5,655 | $5,446 |\ | Adjusted efficiency ratio (non-GAAP) | 56.5 % | 58.3 % |\ | Adjusted fee income ratio (non-GAAP) | 34.2 % | 33.9 % | - Adjusted operating leverage ratio (non-GAAP) was **3.2%** year-to-date 2025[62](index=62&type=chunk) [**Adjusted Net Income Available to Common Shareholders, Adjusted Diluted EPS, and Return Ratios**](index=21&type=section&id=Adjusted%20Net%20Income%20Available%20to%20Common%20Shareholders%2C%20Adjusted%20Diluted%20EPS%2C%20and%20Return%20Ratios) Adjusted net income available to common shareholders (non-GAAP) and adjusted diluted EPS (non-GAAP) both increased QoQ and YoY. Return on average tangible common shareholders' equity (non-GAAP) slightly decreased QoQ but increased YoY Adjusted Profitability and Return Ratios | Metric | 9/30/2025 (millions) | 6/30/2025 (millions) | 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------- | :------------------- | | Net income available to common shareholders (GAAP) | $548 | $534 | $446 |\ | Adjusted net income available to common shareholders (non-GAAP) | $561 | $538 | $520 |\ | Diluted EPS (GAAP) | $0.61 | $0.59 | $0.49 |\ | Adjusted diluted EPS (non-GAAP) | $0.63 | $0.60 | $0.57 |\ | Return on average tangible common shareholders' equity (non-GAAP) | 18.81 % | 19.34 % | 16.87 % |\ | Adjusted return on average tangible common shareholders' equity (non-GAAP) | 19.24 % | 19.48 % | 19.68 % | - Average tangible common shareholders' equity (non-GAAP) **increased** by **$490 million** (**4.4%**) QoQ and **$1,052 million** (**10.0%**) YoY[65](index=65&type=chunk) [**Tangible Common Ratios**](index=22&type=section&id=Tangible%20Common%20Ratios) Tangible common shareholders' equity (non-GAAP) and tangible common book value per share (non-GAAP) both increased QoQ and YoY, reflecting an improved capital position Tangible Common Equity Ratios | Metric | 9/30/2025 (millions) | 6/30/2025 (millions) | 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------- | :------------------- | | Common shareholders' equity (GAAP) | $17,680 | $17,297 | $16,961 |\ | Tangible common shareholders' equity (non-GAAP) | $11,934 | $11,541 | $11,172 |\ | Tangible common shareholders' equity to tangible assets (non-GAAP) | 7.74 % | 7.52 % | 7.37 % |\ | Tangible common book value per share (non-GAAP) | $13.49 | $12.91 | $12.26 | [**Common equity Tier 1 (CET1) Ratios**](index=22&type=section&id=Common%20equity%20Tier%201%20%28CET1%29%20Ratios) The Common Equity Tier 1 (CET1) ratio remained stable QoQ and increased YoY. The adjusted common equity Tier 1 ratio (non-GAAP) also showed an increase QoQ and YoY, indicating a strong capital position Common Equity Tier 1 Ratios | Metric | 9/30/2025 (millions) | 6/30/2025 (millions) | 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------- | :------------------- | | Common equity Tier 1 | $13,620 | $13,533 | $13,185 |\ | Adjusted common equity Tier 1 (non-GAAP) | $11,983 | $11,647 | $11,379 |\ | Total risk-weighted assets | $126,060 | $125,755 | $124,645 |\ | Common equity Tier 1 ratio | 10.8 % | 10.8 % | 10.6 % |\ | Adjusted common equity Tier 1 ratio (non-GAAP) | 9.5 % | 9.3 % | 9.1 % | - Adjustments to CET1 include AOCI loss on securities and defined benefit pension plans, which are considered in the adjusted non-GAAP measure[70](index=70&type=chunk) [**Asset Quality**](index=23&type=section&id=Asset%20Quality) [**Allowance for Credit Losses, Net Charge-Offs and Related Ratios**](index=23&type=section&id=Allowance%20for%20Credit%20Losses%2C%20Net%20Charge-Offs%20and%20Related%20Ratios) The allowance for credit losses (ACL) decreased QoQ but remained relatively stable YoY. Net charge-offs increased QoQ, primarily driven by commercial investor real estate mortgage and other consumer loans, leading to a higher net charge-off ratio Allowance for Credit Losses and Net Charge-Offs | Metric | 9/30/2025 (millions) | 6/30/2025 (millions) | 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------- | :------------------- | | Beginning allowance for loan losses (ALL) | $1,612 | $1,613 | $1,621 |\ | Total loans charged-off | $160 | $133 | $143 |\ | Total recoveries of loans previously charged-off | $25 | $20 | $26 |\ | Total net charge-offs | $135 | $113 | $117 |\ | Provision for loan losses | $104 | $112 | $103 |\ | Ending allowance for loan losses (ALL) | $1,581 | $1,612 | $1,607 |\ | Allowance for credit losses (ACL) at period end | $1,713 | $1,743 | $1,728 | Net Charge-Off Ratios | Net loan charge-offs as a % of average loans, annualized | 9/30/2025 (%) | 6/30/2025 (%) | 9/30/2024 (%) | | :----------------------------------- | :-------- | :-------- | :-------- | | Commercial investor real estate mortgage | 1.82 % | 0.10 % | 0.71 % |\ | Other consumer | 2.83 % | 2.50 % | 2.37 % |\ | Total | 0.55 % | 0.47 % | 0.48 % | - ACL as a percentage of loans, net, was **1.78%** in Q3 2025, a **slight decrease** from **1.80%** in Q2 2025[75](index=75&type=chunk) [**Non-Performing Loans (excludes loans held for sale), Early and Late Stage Delinquencies**](index=26&type=section&id=Non-Performing%20Loans%20%28excludes%20loans%20held%20for%20sale%29%2C%20Early%20and%20Late%20Stage%20Delinquencies) Non-performing loans (excluding loans held for sale) decreased QoQ and YoY. Total delinquencies also decreased QoQ and YoY, indicating an improvement in overall loan quality Non-Performing Loans and Delinquencies | Metric | 9/30/2025 (millions) | 6/30/2025 (millions) | 9/30/2024 (millions) | | :----------------------------------- | :------------------- | :------------------- | :------------------- | | Total non-performing loans | $758 | $776 | $821 |\ | Total accruing 30-89 days past due loans | $363 | $312 | $369 |\ | Total accruing 90+ days past due loans | $154 | $171 | $183 |\ | Total delinquencies | $517 | $483 | $552 | - Non-performing loans as a percentage of loans, excluding loans held for sale, **improved** to **0.79%** in Q3 2025 from **0.80%** in Q2 2025 and **0.85%** in Q3 2024[78](index=78&type=chunk) - Criticized loans—business **decreased significantly** to **$3,682 million** in Q3 2025 from **$4,608 million** in Q2 2025 and **$4,692 million** in Q3 2024[75](index=75&type=chunk) [**Forward-Looking Statements**](index=27&type=section&id=Forward-Looking%20Statements) [**Risks and Uncertainties**](index=27&type=section&id=Risks%20and%20Uncertainties) The company's forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially. These include economic and market conditions, changes in monetary and fiscal policies, interest rate volatility, creditworthiness of customers, and regulatory changes - **Key risks** include the effects of possible declines in property values, **increases** in interest rates and unemployment rates, inflation, and financial market disruptions[81](index=81&type=chunk) - Changes in market interest rates or capital markets could **adversely affect** revenue, expense, asset values, and the availability and cost of capital and liquidity[81](index=81&type=chunk) - The company highlights risks related to its ability to effectively compete with traditional and non-traditional financial services companies, including fintechs, and the challenges presented by the development and use of AI[81](index=81&type=chunk) [**Operational and Regulatory Risks**](index=27&type=section&id=Operational%20and%20Regulatory%20Risks) Operational risks encompass fraud, cybersecurity threats, and dependence on third-party infrastructure. Regulatory risks include changes in laws and regulations, compliance with capital and liquidity requirements, and potential adverse judicial or administrative rulings - Inability to identify and address cyber-security risks such as data security breaches, malware, and denial of service attacks could **disrupt businesses** and lead to **financial losses or reputational damage**[81](index=81&type=chunk) - Changes in laws and regulations affecting bank products and services, including special FDIC assessments and new long-term debt requirements, could **increase compliance risk** and **negatively affect businesses**[85](index=85&type=chunk) - The company's ability to comply with stress testing and capital planning requirements (CCAR process) **requires significant managerial resources**[85](index=85&type=chunk)

[AT THE MARKET OFFERING AGREEMENT](index=1&type=section&id=AT%20THE%20MARKET%20OFFERING%20AGREEMENT) This agreement outlines the terms for the Company's continuous offering and sale of common stock through a designated manager, detailing definitions, sales procedures, representations, and mutual obligations [1. Definitions](index=1&type=section&id=1.%20Definitions) This section defines key terms for consistent interpretation of the At The Market Offering Agreement - The agreement defines various terms, including 'Act' (Securities Act of 1933), 'Commission' (SEC), 'Common Stock', 'Exchange Act' (Securities Exchange Act of 1934), 'GAAP' (Generally Accepted Accounting Principles), 'Material Adverse Effect', 'Prospectus', 'Registration Statement', 'SEC Reports', 'Settlement Date', and 'Trading Market' (Nasdaq Capital Market)[2](index=2&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk)[13](index=13&type=chunk)[16](index=16&type=chunk)[20](index=20&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk)[38](index=38&type=chunk) [2. Sale and Delivery of Shares](index=4&type=section&id=2.%20Sale%20and%20Delivery%20of%20Shares) This chapter outlines terms for the Company's Common Stock issuance and sale through the Manager, acting as agent or principal - The Company proposes to issue and sell shares of its common stock (the "Shares") through or to the Manager, up to a "**Maximum Amount**" limited by registration, authorized but unissued shares, or S-3 eligibility requirements[39](index=39&type=chunk) [2(a) Appointment of Manager as Selling Agent; Terms Agreement](index=4&type=section&id=2(a)%20Appointment%20of%20Manager%20as%20Selling%20Agent%3B%20Terms%20Agreement) The Company appoints the Manager as its exclusive agent for selling Shares, with the Manager agreeing to use commercially reasonable efforts - The Manager is appointed as the exclusive agent to sell Shares, committing to commercially reasonable efforts. Direct sales to the Manager as principal require a separate 'Terms Agreement'[40](index=40&type=chunk) [2(b) Agent Sales](index=5&type=section&id=2(b)%20Agent%20Sales) This section details the mechanics of agent sales, including daily sales instructions, pricing, Manager's compensation, settlement, and the Company's obligations regarding share delivery and affirmations of representations - Shares are sold on a daily basis or as agreed, with the Company providing a 'Sales Notice' specifying the maximum amount and minimum price. The Manager uses commercially reasonable efforts to sell at market price[42](index=42&type=chunk) Manager Compensation for Agent Sales | Item | Detail | | :--- | :--- | | Compensation Rate | 3.0% of gross sales price | | Type of Fee | Placement fee ('Broker Fee') | | Net Proceeds | Gross sales price minus Broker Fee and transaction fees | - Settlement for sales typically occurs on the first Trading Day following the sale (T+1), with the Company electronically transferring shares to the Manager's account at DTC and the Manager delivering Net Proceeds[49](index=49&type=chunk) [2(c) Term Sales](index=7&type=section&id=2(c)%20Term%20Sales) For sales other than agent sales (Placements), the Company notifies the Manager of proposed terms - Placements (sales other than agent sales) are conducted via a 'Terms Agreement' where the Manager acts as principal. This agreement specifies the number of shares, price, and delivery details, and incorporates the main agreement's terms[52](index=52&type=chunk) [2(d) Maximum Number of Shares](index=8&type=section&id=2(d)%20Maximum%20Number%20of%20Shares) The Company is restricted from offering or selling Shares if the aggregate amount exceeds specified limits or at a price lower than the Board-authorized minimum - The Company must not exceed the '**Maximum Amount**' of Shares, the amount available under the Registration Statement, or the Board-authorized amount. Sales below the Board-authorized minimum price are also prohibited[54](index=54&type=chunk) [2(e) Regulation M Notice](index=8&type=section&id=2(e)%20Regulation%20M%20Notice) The Company must provide the Manager with at least one Business Day's prior notice of its intent to sell Shares to ensure compliance with Regulation M - The Company is required to provide at least one Business Day's prior notice to the Manager before selling Shares, to facilitate compliance with Regulation M under the Exchange Act[55](index=55&type=chunk) [3. Representations and Warranties](index=8&type=section&id=3.%20Representations%20and%20Warranties) This chapter details the Company's representations and warranties to the Manager at Execution Time and on subsequent dates - The Company makes comprehensive representations and warranties covering its corporate organization, capitalization, compliance with securities laws (including **S-3 eligibility** and **SEC filings**), financial statements (**GAAP compliance**), absence of **material adverse changes**, litigation, **regulatory permits**, **intellectual property**, and adherence to various other legal and operational standards[56](index=56&type=chunk)[58](index=58&type=chunk)[67](index=67&type=chunk)[73](index=73&type=chunk)[75](index=75&type=chunk)[82](index=82&type=chunk)[84](index=84&type=chunk) [3(a) Subsidiaries](index=8&type=section&id=3(a)%20Subsidiaries) The Company represents that all direct and indirect subsidiaries are listed in SEC Reports, and it owns all capital stock or equity interests free of liens - All subsidiaries are listed in SEC Reports, and the Company owns their capital stock/equity interests free of liens. Shares are validly issued, fully paid, and non-assessable[57](index=57&type=chunk) [3(b) Organization and Qualification](index=8&type=section&id=3(b)%20Organization%20and%20Qualification) The Company and its Subsidiaries are duly organized, validly existing, and in good standing in their respective jurisdictions, with the necessary power and authority to conduct business - The Company and its Subsidiaries are duly organized, validly existing, and in good standing, possessing requisite power and authority. They are qualified to conduct business in all necessary jurisdictions, with no failures expected to result in a '**Material Adverse Effect**'[58](index=58&type=chunk) [3(c) Authorization and Enforcement](index=9&type=section&id=3(c)%20Authorization%20and%20Enforcement) The Company has the corporate power and authority to enter into and consummate the transactions contemplated by the Agreement, which has been duly authorized and constitutes a valid and binding obligation - The Company has the corporate power and authority to execute and perform the Agreement, which is a valid and binding obligation, subject to general equitable principles and bankruptcy laws[60](index=60&type=chunk) [3(d) No Conflicts](index=9&type=section&id=3(d)%20No%20Conflicts) The execution and performance of the Agreement, and the issuance of Shares, do not conflict with the Company's or Subsidiaries' organizational documents, other agreements, or laws - The Agreement's execution and the Shares' issuance do not conflict with organizational documents, other agreements, or laws, provided such conflicts would not individually or in aggregate lead to a '**Material Adverse Effect**'[61](index=61&type=chunk) [3(e) Filings, Consents and Approvals](index=9&type=section&id=3(e)%20Filings%2C%20Consents%20and%20Approvals) The Company is not required to obtain any consents, waivers, or make filings for the Agreement's execution and performance, other than those specified - Required approvals for the transaction include SEC filings (Prospectus Supplement), Trading Market listing, state securities laws, and FINRA rules[62](index=62&type=chunk) [3(f) Issuance of Shares](index=10&type=section&id=3(f)%20Issuance%20of%20Shares) The Shares are duly authorized, and upon issuance and payment, will be validly issued, fully paid, nonassessable, and freely transferable - The Shares are duly authorized, validly issued, fully paid, nonassessable, and freely transferable. Their issuance is registered under the Act and aligns with the 'Plan of Distribution' in the Registration Statement[64](index=64&type=chunk) [3(g) Capitalization](index=10&type=section&id=3(g)%20Capitalization) The Company's capitalization is as stated in SEC Reports, with no new capital stock issued since the last periodic report (except for employee plans/conversions) and no outstanding rights or agreements that would obligate further equity issuance or adjust security prices - Company capitalization is as per SEC Reports. No new capital stock issued since the last periodic report, except for employee stock options/purchase plans or conversion/exercise of existing 'Common Stock Equivalents'. No outstanding securities with redemption or price adjustment provisions[65](index=65&type=chunk) [3(h) Registration Statement](index=11&type=section&id=3(h)%20Registration%20Statement) The Company meets Form S-3 requirements, has an effective Registration Statement for the Shares, and complies with relevant rules and transaction requirements - The Company meets Form S-3 requirements, has an effective Registration Statement for the Shares, and complies with Rule 415(a)(1)(x) and Form S-3 General Instruction I.B.1 or I.B.6[67](index=67&type=chunk) [3(i) Accuracy of Incorporated Documents](index=11&type=section&id=3(i)%20Accuracy%20of%20Incorporated%20Documents) All Incorporated Documents filed with the Commission conformed to Exchange Act requirements and did not contain any material misstatements or omissions at the time of filing - Incorporated Documents conformed to Exchange Act requirements and were free of material misstatements or omissions when filed. Future incorporated documents will also comply[68](index=68&type=chunk) [3(j) Ineligible Issuer](index=11&type=section&id=3(j)%20Ineligible%20Issuer) The Company is an "ineligible issuer" as defined in Rule 405 under the Act - The Company is classified as an '**ineligible issuer**' under Rule 405 of the Act[69](index=69&type=chunk) [3(k) Free Writing Prospectus](index=12&type=section&id=3(k)%20Free%20Writing%20Prospectus) The Company is eligible to use Issuer Free Writing Prospectuses, subject to Rule 164(e)(2) restrictions, and ensures they do not conflict with the Registration Statement or contain material misstatements - The Company is eligible to use Issuer Free Writing Prospectuses, ensuring they do not conflict with the Registration Statement and comply with filing requirements under Rule 433(d)[71](index=71&type=chunk) [3(l) Proceedings Related to Registration Statement](index=12&type=section&id=3(l)%20Proceedings%20Related%20to%20Registration%20Statement) The Registration Statement is not subject to any pending SEC proceedings or examinations, and the Company has not received notice of any stop-order or suspension of effectiveness - No pending SEC proceedings or examinations exist for the Registration Statement, and no stop-orders or suspensions of effectiveness have been issued or threatened[72](index=72&type=chunk) [3(m) SEC Reports](index=12&type=section&id=3(m)%20SEC%20Reports) The Company has timely filed all required SEC Reports, which complied with applicable laws and did not contain material misstatements or omissions - All SEC Reports were filed timely, complied with the Act and Exchange Act, and contained no material misstatements. Financial statements adhere to GAAP and accurately reflect the Company's financial position and results[73](index=73&type=chunk) [3(o) Material Changes; Undisclosed Events, Liabilities or Developments](index=13&type=section&id=3(o)%20Material%20Changes%3B%20Undisclosed%20Events%2C%20Liabilities%20or%20Developments) Since the latest audited financial statements, there have been no Material Adverse Effects, undisclosed liabilities (beyond ordinary course), accounting changes, dividends, or equity issuances to officers/directors (except existing plans), and no executive resignations, nor any other undisclosed material events - No '**Material Adverse Effect**' or undisclosed liabilities (beyond ordinary course) have occurred since the latest audited financials. No changes in accounting, dividends, or equity issuances to officers/directors (except existing plans) have taken place. No executive officers or Board members have resigned[75](index=75&type=chunk) [3(p) Litigation](index=13&type=section&id=3(p)%20Litigation) Except as disclosed in SEC Reports, there is no pending or threatened litigation that would adversely affect the Agreement or result in a Material Adverse Effect - No undisclosed litigation is pending or threatened that could adversely affect the Agreement or result in a '**Material Adverse Effect**'. No claims of securities law violations or SEC investigations involving the Company or its officers/directors[76](index=76&type=chunk) [3(q) Labor Relations](index=14&type=section&id=3(q)%20Labor%20Relations) No material labor disputes exist or are imminent, and the Company and its Subsidiaries maintain good employee relations, are not party to collective bargaining agreements, and comply with all applicable labor laws - No material labor disputes are imminent, and the Company maintains good employee relations. Compliance with all applicable U.S. federal, state, local, and foreign labor laws is maintained, with no expected '**Material Adverse Effect**' from non-compliance[78](index=78&type=chunk) [3(r) Compliance](index=14&type=section&id=3(r)%20Compliance) Except as disclosed in SEC Reports, the Company and its Subsidiaries are not in default or violation of any agreements, judgments, or governmental regulations (including environmental, health, safety, and tax laws), where such non-compliance would result in a Material Adverse Effect - The Company and its Subsidiaries are in compliance with all agreements, judgments, and governmental regulations (e.g., taxes, environmental, occupational health and safety), with no defaults or violations expected to result in a '**Material Adverse Effect**'[79](index=79&type=chunk) [3(s) Environmental Laws](index=14&type=section&id=3(s)%20Environmental%20Laws) The Company and its Subsidiaries comply with all Environmental Laws, possess all required permits, and adhere to their terms and conditions - The Company and its Subsidiaries comply with all Environmental Laws and possess necessary permits, with no non-compliance expected to have a '**Material Adverse Effect**'[80](index=80&type=chunk) [3(t) Regulatory Permits](index=15&type=section&id=3(t)%20Regulatory%20Permits) The Company and its Subsidiaries hold all necessary regulatory permits ("Material Permits") to conduct their businesses as described in SEC Reports - The Company and its Subsidiaries possess all '**Material Permits**' required for their operations and have not received notice of any revocation or modification proceedings[82](index=82&type=chunk) [3(u) Title to Assets](index=15&type=section&id=3(u)%20Title%20to%20Assets) The Company and its Subsidiaries have good and marketable title to all material real and personal property, free of liens (except minor ones or tax liens with adequate reserves) - The Company and its Subsidiaries hold good and marketable title to all material real and personal property, free of liens (excluding minor ones or tax liens with reserves). They are also in compliance with all leases[83](index=83&type=chunk) [3(v) Intellectual Property](index=15&type=section&id=3(v)%20Intellectual%20Property) The Company and its Subsidiaries possess or have rights to all necessary intellectual property rights ("Intellectual Property Rights"), with no expected expiration or termination, no infringement claims, and reasonable security measures in place - The Company and its Subsidiaries have or have rights to all necessary '**Intellectual Property Rights**', with no expected expiration or termination within two years. No infringement claims have been received, and reasonable security measures are in place[84](index=84&type=chunk) [3(w) Insurance](index=16&type=section&id=3(w)%20Insurance) The Company and its Subsidiaries are adequately insured by recognized insurers against customary losses and risks, including D&O coverage - The Company and its Subsidiaries are insured by financially responsible insurers for customary losses and risks, including D&O coverage, and anticipate renewing coverage without significant cost increases[86](index=86&type=chunk) [3(x) Affiliate Transactions](index=16&type=section&id=3(x)%20Affiliate%20Transactions) Except as disclosed in SEC Reports, there are no material transactions (exceeding $120,000) between the Company/Subsidiaries and their officers, directors, or employees, other than for standard compensation and reimbursements - No material transactions (over **$120,000**) exist between the Company/Subsidiaries and their officers, directors, or employees, other than for standard compensation, reimbursements, and employee benefits, except as disclosed in SEC Reports[87](index=87&type=chunk) [3(y) Sarbanes Oxley Compliance](index=16&type=section&id=3(y)%20Sarbanes%20Oxley%20Compliance) Except as disclosed in SEC Reports, the Company and its Subsidiaries comply with Sarbanes-Oxley, maintain effective internal accounting controls and disclosure controls and procedures - The Company and its Subsidiaries comply with Sarbanes-Oxley, maintain effective internal accounting controls and disclosure controls, and have not had material changes in internal control over financial reporting since the Evaluation Date[88](index=88&type=chunk) [3(z) Certain Fees](index=17&type=section&id=3(z)%20Certain%20Fees) No brokerage or finder's fees or commissions are payable by the Company or any Subsidiary to any third party with respect to the transactions contemplated by this Agreement, other than payments to the Manager - No brokerage or finder's fees are payable by the Company or its Subsidiaries to any third party for these transactions, other than to the Manager[90](index=90&type=chunk) [3(aa) No Other Sales Agency Agreement](index=17&type=section&id=3(aa)%20No%20Other%20Sales%20Agency%20Agreement) The Company has not entered into any other sales agency agreements or similar arrangements for at-the-market offerings of its Shares - The Company has no other sales agency agreements or similar arrangements for at-the-market offerings of its Shares[91](index=91&type=chunk) [3(bb) Investment Company](index=17&type=section&id=3(bb)%20Investment%20Company) The Company is not, and will not become, an "investment company" subject to registration under the Investment Company Act of 1940, as amended - The Company is not, and will not become, an '**investment company**' under the Investment Company Act of 1940[92](index=92&type=chunk) [3(cc) Listing and Maintenance Requirements](index=17&type=section&id=3(cc)%20Listing%20and%20Maintenance%20Requirements) The Common Stock is listed on the Trading Market, and its issuance complies with listing rules - Common Stock is listed on the Trading Market, and its issuance complies with listing rules. The Company is registered under the Exchange Act and complies with all listing and maintenance requirements[93](index=93&type=chunk) [3(dd) Application of Takeover Protections](index=18&type=section&id=3(dd)%20Application%20of%20Takeover%20Protections) The Company and its Board have taken all necessary actions to render inapplicable any anti-takeover provisions that could apply to the Shares - The Company and its Board have taken necessary actions to render anti-takeover provisions inapplicable to the Shares[94](index=94&type=chunk) [3(ee) Solvency](index=18&type=section&id=3(ee)%20Solvency) Based on its consolidated financial condition, the Company is solvent, with assets exceeding liabilities, sufficient capital, and adequate cash flow to pay debts as they mature - The Company is solvent, with assets exceeding liabilities and sufficient capital. Current cash flow and potential liquidation proceeds are adequate to meet debt obligations. No intent to incur unpayable debts or file for bankruptcy within one year[95](index=95&type=chunk) [3(ff) Tax Status](index=19&type=section&id=3(ff)%20Tax%20Status) Except for non-material matters, the Company and its Subsidiaries have filed all required tax returns, paid all material taxes, and set aside adequate provisions for future taxes - The Company and its Subsidiaries have filed all required tax returns, paid all material taxes, and made adequate provisions for future taxes, with no material unpaid taxes claimed[97](index=97&type=chunk) [3(gg) Foreign Corrupt Practices](index=19&type=section&id=3(gg)%20Foreign%20Corrupt%20Practices) Neither the Company nor its Subsidiaries, nor any agent acting on their behalf, has engaged in unlawful contributions, payments to government officials, or materially violated the Foreign Corrupt Practices Act - Neither the Company nor its Subsidiaries, nor their agents, have engaged in unlawful political contributions, payments to officials, or materially violated the Foreign Corrupt Practices Act[98](index=98&type=chunk) [3(hh) Accountants](index=19&type=section&id=3(hh)%20Accountants) The Company's accounting firm is a registered public accounting firm and is expected to express an opinion on the financial statements for the fiscal year ending December 31, 2025 - The Company's accounting firm is a registered public accounting firm and will express an opinion on the financial statements for the fiscal year ending December 31, 2025[99](index=99&type=chunk) [3(ii) Regulation M Compliance](index=19&type=section&id=3(ii)%20Regulation%20M%20Compliance) The Company has not, and to its knowledge no one acting on its behalf has, taken any action to stabilize or manipulate the price of its securities or solicit purchases, other than compensation paid to the Manager for the Shares - The Company has not engaged in market stabilization or manipulation activities to facilitate the sale of Shares, nor solicited purchases, except for compensation paid to the Manager[100](index=100&type=chunk) [3(kk) Stock Option Plans](index=20&type=section&id=3(kk)%20Stock%20Option%20Plans) All stock options granted under the Company's plans were in accordance with terms, had an exercise price at least equal to fair market value on the grant date, and were not backdated or knowingly coordinated with material information releases - Stock options were granted in accordance with plan terms, at fair market value, and were not backdated or coordinated with material information releases[102](index=102&type=chunk) [3(ll) Cybersecurity](index=20&type=section&id=3(ll)%20Cybersecurity) There have been no security breaches or compromises of the Company's IT Systems and Data, and the Company complies with all applicable laws and maintains commercially reasonable safeguards - No security breaches or compromises of IT Systems and Data have occurred. The Company complies with all applicable laws, maintains commercially reasonable safeguards, and has implemented backup and disaster recovery technology[103](index=103&type=chunk) [3(mm) Compliance with Data Privacy Laws](index=20&type=section&id=3(mm)%20Compliance%20with%20Data%20Privacy%20Laws) The Company and its Subsidiaries comply with all applicable data privacy and security laws (including GDPR) and their internal policies, providing accurate notice of privacy practices - The Company and its Subsidiaries comply with all applicable data privacy and security laws (e.g., **GDPR**) and internal policies, providing accurate notice of privacy practices. No notices of actual or potential liability or violations have been received[104](index=104&type=chunk) [3(nn) Office of Foreign Assets Control](index=21&type=section&id=3(nn)%20Office%20of%20Foreign%20Assets%20Control) Neither the Company nor its affiliates, directors, officers, or employees are subject to U.S. or international sanctions, nor will the proceeds from the transactions be used in violation of such sanctions - Neither the Company nor its affiliates, directors, officers, or employees are subject to Sanctions. Proceeds from transactions will not be used in violation of Sanctions[106](index=106&type=chunk) [3(oo) U.S. Real Property Holding Corporation](index=21&type=section&id=3(oo)%20U.S.%20Real%20Property%20Holding%20Corporation) The Company is not and has never been a U.S. real property holding corporation under Section 897 of the Internal Revenue Code - The Company is not and has never been a U.S. real property holding corporation[107](index=107&type=chunk) [3(pp) Bank Holding Company Act](index=21&type=section&id=3(pp)%20Bank%20Holding%20Company%20Act) Neither the Company nor its Subsidiaries or Affiliates are subject to the Bank Holding Company Act of 1956 or regulation by the Federal Reserve - Neither the Company nor its Subsidiaries or Affiliates are subject to the Bank Holding Company Act or Federal Reserve regulation, nor do they control significant interests in regulated entities[108](index=108&type=chunk) [3(qq) Money Laundering](index=21&type=section&id=3(qq)%20Money%20Laundering) The Company and its Subsidiaries' operations comply with applicable Money Laundering Laws, and no related actions or proceedings are pending or threatened - The Company and its Subsidiaries comply with Money Laundering Laws, and no related actions or proceedings are pending or threatened[109](index=109&type=chunk) [3(rr) FINRA Member Shareholders](index=21&type=section&id=3(rr)%20FINRA%20Member%20Shareholders) There are no undisclosed affiliations with any FINRA member firm among the Company's officers, directors, or 5% or greater stockholders - No undisclosed affiliations with FINRA member firms exist among the Company's officers, directors, or **5%+** stockholders[110](index=110&type=chunk) [4. Agreements](index=22&type=section&id=4.%20Agreements) This chapter outlines the Company's ongoing obligations to the Manager for regulatory filings, disclosure, due diligence, and offering operations - The Company agrees to provide the Manager with copies of all amendments and supplements to the Registration Statement and Prospectus for review, and to promptly notify the Manager of any filings, SEC requests, or stop orders[112](index=112&type=chunk) [4(a) Right to Review Amendments and Supplements to Registration Statement and Prospectus](index=22&type=section&id=4(a)%20Right%20to%20Review%20Amendments%20and%20Supplements%20to%20Registration%20Statement%20and%20Prospectus) The Company agrees to provide the Manager with copies of all amendments and supplements to the Registration Statement and Prospectus for review prior to filing - The Company must furnish the Manager with proposed amendments/supplements for review before filing and promptly advise the Manager of filings, SEC requests, or stop orders[112](index=112&type=chunk) [4(b) Subsequent Events](index=22&type=section&id=4(b)%20Subsequent%20Events) If any event occurs before the Settlement Date that would cause the Registration Statement or Prospectus to contain a material misstatement or omission, the Company will promptly notify the Manager and amend or supplement the documents - The Company will promptly notify the Manager and amend the Registration Statement or Prospectus if any event causes a material misstatement or omission before the Settlement Date[113](index=113&type=chunk) [4(c) Notification of Subsequent Filings](index=23&type=section&id=4(c)%20Notification%20of%20Subsequent%20Filings) During the period when a prospectus is required, if any event necessitates an amendment to the Registration Statement or Prospectus to comply with securities laws or correct misstatements, the Company will promptly notify the Manager and file the necessary amendments or supplements - The Company will promptly notify the Manager and file necessary amendments or supplements if any event requires changes to the Registration Statement or Prospectus for compliance or to correct misstatements[115](index=115&type=chunk) [4(d) Earnings Statements](index=23&type=section&id=4(d)%20Earnings%20Statements) The Company will make earnings statements generally available to satisfy Section 11(a) of the Act and Rule 158, with compliance with Exchange Act reporting requirements deemed sufficient - The Company will make earnings statements available to satisfy Section 11(a) of the Act and Rule 158, with Exchange Act reporting deemed sufficient[116](index=116&type=chunk) [4(e) Delivery of Registration Statement](index=23&type=section&id=4(e)%20Delivery%20of%20Registration%20Statement) Upon request, the Company will furnish the Manager and its counsel with signed copies of the Registration Statement and sufficient copies of the Prospectus and any Issuer Free Writing Prospectus, covering all printing expenses - The Company will furnish signed copies of the Registration Statement and sufficient copies of the Prospectus and Issuer Free Writing Prospectus to the Manager upon request, covering all printing expenses[117](index=117&type=chunk) [4(f) Qualification of Shares](index=23&type=section&id=4(f)%20Qualification%20of%20Shares) The Company will arrange for the qualification of Shares for sale in designated jurisdictions and maintain such qualifications, but is not obligated to qualify to do business or be subject to service of process in new jurisdictions - The Company will qualify Shares for sale in designated jurisdictions, but is not obligated to qualify to do business or be subject to service of process in new jurisdictions[118](index=118&type=chunk) [4(g) Free Writing Prospectus](index=24&type=section&id=4(g)%20Free%20Writing%20Prospectus) Both the Company and the Manager agree to obtain prior written consent for any Free Writing Prospectus and to treat any consented-to "Permitted Free Writing Prospectus" as an Issuer Free Writing Prospectus - Both parties must consent to any Free Writing Prospectus, and any '**Permitted Free Writing Prospectus**' must comply with Rules 164 and 433[120](index=120&type=chunk) [4(h) Subsequent Equity Issuances](index=24&type=section&id=4(h)%20Subsequent%20Equity%20Issuances) The Company will not deliver a Sales Notice for two Trading Days prior to any other equity issuance (except for employee plans, conversions, or non-capital raising private transactions), subject to Manager's waiver - The Company must provide **two Trading Days'** notice before other equity issuances, with exceptions for employee equity plans, conversions of existing Common Stock Equivalents, and privately negotiated transactions not for capital raising[121](index=121&type=chunk) [4(i) Market Manipulation](index=24&type=section&id=4(i)%20Market%20Manipulation) Until termination, the Company will not take any action designed to stabilize or manipulate the price of its securities in violation of the Act, Exchange Act, or Regulation M - The Company commits not to engage in market stabilization or manipulation activities in violation of securities laws or Regulation M[122](index=122&type=chunk) [4(j) Notification of Incorrect Certificate](index=24&type=section&id=4(j)%20Notification%20of%20Incorrect%20Certificate) The Company will immediately advise the Manager of any information or fact that would alter or affect any opinion, certificate, or document previously provided - The Company will immediately notify the Manager of any information affecting previously provided opinions, certificates, or documents[123](index=123&type=chunk) [4(k) Certification of Accuracy of Disclosure](index=25&type=section&id=4(k)%20Certification%20of%20Accuracy%20of%20Disclosure) On each "Representation Date" (e.g., filing 10-K/10-Q, amendments), the Company must furnish a certificate confirming the accuracy of disclosures, with certain waivers applicable when no Sales Notice is pending - On each '**Representation Date**' (e.g., filing 10-K, 10-Q, material 8-K, new/amended Registration Statement/Prospectus), the Company must provide a certificate affirming the accuracy of disclosures, with waivers possible if no Sales Notice is pending[125](index=125&type=chunk) [4(l) Bring Down Opinions; Negative Assurance](index=25&type=section&id=4(l)%20Bring%20Down%20Opinions%3B%20Negative%20Assurance) Within five Trading Days of each Representation Date, the Company must furnish a written opinion and negative assurance statement from Company Counsel, subject to certain waivers - Within **five Trading Days** of each '**Representation Date**', the Company must provide a written opinion and negative assurance statement from Company Counsel, with waivers for certain dates unless specifically requested by the Manager[126](index=126&type=chunk) [4(m) Auditor Bring Down "Comfort" Letter](index=26&type=section&id=4(m)%20Auditor%20Bring%20Down%20%22Comfort%22%20Letter) Within five Trading Days of each Representation Date, the Company must cause its auditors to furnish a comfort letter and its CFO to furnish a certificate, subject to certain waivers - Within **five Trading Days** of each '**Representation Date**', the Company must provide an auditor's comfort letter and a CFO certificate, with waivers for certain dates unless specifically requested by the Manager[128](index=128&type=chunk) [4(n) Due Diligence Session](index=26&type=section&id=4(n)%20Due%20Diligence%20Session) The Company will conduct due diligence sessions at the commencement/recommencement of the offering and on each Representation Date, including management, counsel, and accountants, and will reimburse Manager's counsel fees up to $2,500 per session - The Company will conduct due diligence sessions at the start/recommencement of the offering and on each '**Representation Date**', involving management, counsel, and accountants. The Company will reimburse Manager's counsel fees up to **$2,500** per session[129](index=129&type=chunk) [4(o) Acknowledgment of Trading](index=26&type=section&id=4(o)%20Acknowledgment%20of%20Trading) The Company consents to the Manager trading in the Common Stock for its own account and for its clients concurrently with sales of Shares under the Agreement - The Company consents to the Manager trading Common Stock for its own account and clients concurrently with Share sales under the Agreement[130](index=130&type=chunk) [4(p) Disclosure of Shares Sold](index=27&type=section&id=4(p)%20Disclosure%20of%20Shares%20Sold) The Company will disclose the number of Shares sold, Net Proceeds, and Manager compensation in its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, and more frequently if required by Commission policy - The Company will disclose the number of Shares sold, Net Proceeds, and Manager compensation in its **10-K** and **10-Q** reports, and potentially more frequently via **8-K** or Prospectus Supplement if required[132](index=132&type=chunk) [4(q) Rescission Right](index=27&type=section&id=4(q)%20Rescission%20Right) If the conditions in Section 6 are not satisfied by the Settlement Date, the Company will offer purchasers the right to refuse to purchase and pay for Shares - The Company will offer a rescission right to purchasers if conditions in Section 6 are not met by the Settlement Date[133](index=133&type=chunk) [4(r) Bring Down of Representations and Warranties](index=27&type=section&id=4(r)%20Bring%20Down%20of%20Representations%20and%20Warranties) Each acceptance of an offer or execution of a Terms Agreement is deemed an affirmation that the Company's representations and warranties remain true and correct as of that date and the subsequent Settlement Date/Time of Delivery - Each sale or Terms Agreement execution affirms that the Company's representations and warranties are true and correct as of that date and the Settlement Date/Time of Delivery[134](index=134&type=chunk) [4(s) Reservation of Shares](index=27&type=section&id=4(s)%20Reservation%20of%20Shares) The Company must ensure sufficient authorized shares are reserved for issuance and will use commercially reasonable efforts to list and maintain the listing of Shares on the Trading Market - The Company must reserve sufficient authorized shares for issuance and use commercially reasonable efforts to list and maintain the listing of Shares on the Trading Market[135](index=135&type=chunk) [4(t) Obligation Under Exchange Act](index=28&type=section&id=4(t)%20Obligation%20Under%20Exchange%20Act) During any period when a prospectus is required, the Company will file all documents required by the Exchange Act within the prescribed time periods - The Company will file all required Exchange Act documents within prescribed time periods when a prospectus is required[137](index=137&type=chunk) [4(u) DTC Facility](index=28&type=section&id=4(u)%20DTC%20Facility) The Company will cooperate with the Manager and use reasonable efforts to make the Shares eligible for clearance and settlement through DTC facilities - The Company will cooperate to make Shares eligible for DTC clearance and settlement[138](index=138&type=chunk) [4(v) Use of Proceeds](index=28&type=section&id=4(v)%20Use%20of%20Proceeds) The Company will apply the Net Proceeds from the sale of Shares in the manner specified in the Prospectus - Net Proceeds from Share sales will be used as described in the Prospectus[138](index=138&type=chunk) [4(w) Filing of Prospectus Supplement](index=28&type=section&id=4(w)%20Filing%20of%20Prospectus%20Supplement) For any sales not made in "at the market" offerings (e.g., Placements), the Company will file a Prospectus Supplement detailing the transaction terms, amount of Shares sold, price, and Manager's compensation - For non-'at the market' sales, the Company will file a Prospectus Supplement detailing transaction terms, Shares sold, price, and Manager's compensation[139](index=139&type=chunk) [4(x) Additional Registration Statement](index=28&type=section&id=4(x)%20Additional%20Registration%20Statement) If the current Registration Statement is unavailable for sales, the Company will file a new registration statement for additional shares and cause it to become effective promptly - If the current Registration Statement is unavailable, the Company will file and promptly make effective a new registration statement for additional shares[140](index=140&type=chunk) [5. Payment of Expenses](index=29&type=section&id=5.%20Payment%20of%20Expenses) The Company agrees to cover all costs and expenses related to its obligations under the Agreement, including regulatory, printing, and legal fees - The Company is responsible for all costs and expenses related to the offering, including SEC filing fees, printing, and legal fees. Manager's counsel fees are capped at **$50,000** at Execution Time, plus **$2,500** per Representation Date for due diligence[142](index=142&type=chunk) [6. Conditions to the Obligations of the Manager](index=29&type=section&id=6.%20Conditions%20to%20the%20OBLIGATIONS%20of%20the%20Manager) The Manager's obligations are contingent on the Company's representations, performance, and satisfaction of specific conditions, including regulatory filings and legal opinions - The Manager's obligations are subject to the accuracy of Company representations, Company performance, and specific conditions including timely filing of Prospectus Supplements, delivery of Company Counsel opinions, Officer's Certificates, and Accountants' 'Comfort' Letters[143](index=143&type=chunk)[144](index=144&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) [6(a) Filing of Prospectus Supplement](index=29&type=section&id=6(a)%20Filing%20of%20Prospectus%20Supplement) A condition for the Manager's obligations is the timely filing of the Prospectus and any supplements with the Commission, and that no stop order or objection to the Registration Statement's use has been issued or threatened - The Prospectus and supplements must be filed timely, and no stop orders or objections to the Registration Statement's use should be pending or threatened[143](index=143&type=chunk) [6(b) Delivery of Opinion](index=29&type=section&id=6(b)%20Delivery%20of%20Opinion) The Company must cause its counsel to furnish a satisfactory legal opinion and negative assurance statement to the Manager - Company Counsel must provide a satisfactory legal opinion and negative assurance statement to the Manager[144](index=144&type=chunk) [6(c) Delivery of Officer's Certificate](index=30&type=section&id=6(c)%20Delivery%20of%20Officer's%20Certificate) The Company must provide a certificate signed by its CEO/President and principal financial/accounting officer, confirming the accuracy of representations, compliance with agreements, absence of stop orders, and no Material Adverse Effect since the most recent financial statements - A certificate from the CEO/President and CFO/CAO must confirm the accuracy of representations, compliance, absence of stop orders, and no '**Material Adverse Effect**' since the latest financial statements[146](index=146&type=chunk) [6(d) Delivery of Accountants' "Comfort" Letter](index=30&type=section&id=6(d)%20Delivery%20of%20Accountants'%20%22Comfort%22%20Letter) The Company must ensure its independent accountants furnish a satisfactory "comfort" letter to the Manager, confirming their independence and providing customary comfort regarding financial information - The Company's independent accountants must provide a satisfactory '**comfort**' letter, confirming independence and customary comfort on financial information[147](index=147&type=chunk) [6(e) No Material Adverse Event](index=31&type=section&id=6(e)%20No%20Material%20Adverse%20Event) There must be no material adverse change or decrease in financial results or condition of the Company and its subsidiaries since the dates of disclosed information, which, in the Manager's sole judgment, would make the offering impractical - No '**Material Adverse Event**' (change or decrease in financial results or condition) must have occurred since the disclosed information dates, which, in the Manager's sole judgment, would make the offering impractical[149](index=149&type=chunk) [6(f) Payment of All Fees](index=31&type=section&id=6(f)%20Payment%20of%20All%20Fees) The Company must have paid all required Commission filing fees relating to the Shares within the specified timeframes - All required Commission filing fees for the Shares must be paid within the specified timeframes[150](index=150&type=chunk) [6(g) No FINRA Objections](index=31&type=section&id=6(g)%20No%20FINRA%20Objections) FINRA must not have raised any objections regarding the fairness and reasonableness of the Agreement's terms and arrangements - FINRA must not have objected to the fairness and reasonableness of the Agreement's terms[151](index=151&type=chunk) [6(h) Shares Listed on Trading Market](index=31&type=section&id=6(h)%20Shares%20Listed%20on%20Trading%20Market) The Shares must be listed and authorized for trading on the Trading Market, with satisfactory evidence provided to the Manager - The Shares must be listed and authorized for trading on the Trading Market, with evidence provided to the Manager[151](index=151&type=chunk) [6(i) Other Assurances](index=31&type=section&id=6(i)%20Other%20Assurances) Prior to each Settlement Date and Time of Delivery, the Company must furnish any further information, certificates, and documents reasonably requested by the Manager - The Company must provide any additional information, certificates, and documents reasonably requested by the Manager prior to each Settlement Date and Time of Delivery[152](index=152&type=chunk) [7. Indemnification and Contribution](index=32&type=section&id=7.%20Indemnification%20and%20Contribution) This chapter outlines indemnification and contribution obligations between the Company and Manager for losses from misstatements or breaches - The Company indemnifies the Manager for losses from misstatements/omissions in offering documents or breaches of the Agreement, except for information provided by the Manager. The Manager indemnifies the Company for losses from information it provided, capped at the **Broker Fee**[156](index=156&type=chunk)[157](index=157&type=chunk) [7(a) Indemnification by Company](index=32&type=section&id=7(a)%20Indemnification%20by%20Company) The Company agrees to indemnify the Manager and its affiliates against losses, claims, damages, or liabilities arising from untrue statements or omissions in the Registration Statement, Prospectus, or other offering documents, or from any breach of the Agreement - The Company indemnifies the Manager for losses arising from untrue statements or omissions in offering documents or breaches of the Agreement, unless based on information furnished by the Manager[156](index=156&type=chunk) [7(b) Indemnification by Manager](index=32&type=section&id=7(b)%20Indemnification%20by%20Manager) The Manager agrees to indemnify the Company and its affiliates for losses arising from untrue statements or omissions based on written information specifically furnished by the Manager for inclusion in the offering documents - The Manager indemnifies the Company for losses arising from untrue statements or omissions based on information specifically furnished by the Manager, with liability capped at the **Broker Fee**[157](index=157&type=chunk) [7(c) Indemnification Procedures](index=33&type=section&id=7(c)%20Indemnification%20Procedures) This section outlines the procedures for indemnification, including prompt notification of actions, the indemnifying party's right to appoint counsel, and conditions under which the indemnified party may retain separate counsel - Indemnification procedures include prompt notification of actions, the indemnifying party's right to appoint counsel, and conditions for the indemnified party to employ separate counsel (e.g., conflict of interest, different legal defenses)[159](index=159&type=chunk) [7(d) Contribution](index=34&type=section&id=7(d)%20Contribution) If indemnification is unavailable, the Company and Manager agree to contribute to losses based on relative benefits received and relative fault, with the Manager's contribution capped at the Broker Fee - If indemnification is unavailable, contribution to losses is based on relative benefits and fault, with the Manager's contribution capped at the **Broker Fee**. This considers factors like information provision, intent, and knowledge[161](index=161&type=chunk) [8. Termination](index=34&type=section&id=8.%20Termination) This chapter details the conditions and procedures for termination of the Agreement by either party, including notice requirements and surviving sections - Both the Company and the Manager have the right to terminate the Agreement with written notice. Certain sections (**5, 6, 7, 8, 9, 10, 12, 14, 15, 16**) survive termination, and pending sales will settle[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk) [8(a) Company's Right to Terminate](index=34&type=section&id=8(a)%20Company's%20Right%20to%20Terminate) The Company may terminate the Agreement with ten Business Days' prior written notice, without liability except for pending sales and the survival of specific sections - The Company can terminate with **10 Business Days'** notice, with pending sales and specific sections (**5, 6, 7, 8, 9, 10, 12, 14, 15, 16**) surviving[162](index=162&type=chunk) [8(b) Manager's Right to Terminate](index=35&type=section&id=8(b)%20Manager's%20Right%20to%20Terminate) The Manager may terminate the Agreement at any time by written notice, without liability except for the survival of specific sections - The Manager can terminate at any time, with specific sections (**5, 6, 7, 8, 9, 10, 12, 14, 15, 16**) surviving[163](index=163&type=chunk) [8(c) Mutual Agreement](index=35&type=section&id=8(c)%20Mutual%20Agreement) The Agreement remains in effect until terminated by either party or by mutual agreement, with the same specific sections surviving any mutual termination - The Agreement remains in effect until terminated by either party or mutual agreement, with specific sections (**5, 6, 7, 8, 9, 10, 12, 14, 15, 16**) surviving[164](index=164&type=chunk) [8(d) Effective Date of Termination](index=35&type=section&id=8(d)%20Effective%20Date%20of%20Termination) Termination is effective on the date specified in the notice, but not before the close of business on the date of receipt - Termination is effective on the specified date, but not before the close of business on the notice receipt date. Pending Share sales will settle as per the Agreement[165](index=165&type=chunk) [8(e) Manager's Termination Rights for Principal Purchases](index=35&type=section&id=8(e)%20Manager's%20Termination%20Rights%20for%20Principal%20Purchases) For purchases where the Manager acts as principal (Terms Agreement), the Manager can terminate its obligations if market trading is suspended, a banking moratorium is declared, or a calamity makes the offering impractical - The Manager can terminate principal purchase obligations under a Terms Agreement if market trading is suspended, a banking moratorium is declared, or a calamity makes the offering impractical[166](index=166&type=chunk) [9. Representations and Indemnities to Survive](index=35&type=section&id=9.%20Representations%20and%20Indemnities%20to%20Survive) All representations, warranties, and indemnities made in the Agreement survive the delivery and payment for Shares, remaining in full force - All representations, warranties, and indemnities survive the delivery and payment for Shares, remaining in full force regardless of any investigations[167](index=167&type=chunk) [10. Notices](index=36&type=section&id=10.%20Notices) All communications under the Agreement must be in writing, effective upon receipt, and sent to the specified addresses - All communications must be in writing, effective upon receipt, and sent to the specified addresses of the Company and the Manager[169](index=169&type=chunk) [11. Successors](index=36&type=section&id=11.%20Successors) The Agreement binds the parties, their successors, and related individuals (officers, directors, employees, agents, controlling persons) as specified in Section 7 - The Agreement binds the parties, their successors, and related individuals (officers, directors, employees, agents, controlling persons) as specified in Section 7[170](index=170&type=chunk) [12. No Fiduciary Duty](index=36&type=section&id=12.%20No%20Fiduciary%20Duty) The Company acknowledges an arm's-length transaction, with the Manager acting solely as sales agent/principal, not as a fiduciary - The Company acknowledges an arm's-length transaction, with the Manager acting solely as sales agent/principal, not as a fiduciary. The Company retains responsibility for its own judgments[171](index=171&type=chunk) [13. Integration](index=36&type=section&id=13.%20Integration) This Agreement and any Terms Agreement supersede all prior agreements and understandings between the Company and the Manager - This Agreement and any Terms Agreement supersede all prior agreements and understandings between the Company and the Manager[172](index=172&type=chunk) [14. Amendments; Waivers](index=36&type=section&id=14.%20Amendments%3B%20Waivers) Amendments or waivers require a written instrument signed by both parties; a waiver of one default is not a continuing waiver - Amendments or waivers require a written instrument signed by both parties. A waiver of one default is not a continuing waiver or a waiver of other provisions[173](index=173&type=chunk) [15. Applicable Law](index=37&type=section&id=15.%20Applicable%20Law) The Agreement is governed by New York law, with exclusive jurisdiction in New York courts; prevailing party gets attorney's fees - The Agreement is governed by New York law. Exclusive jurisdiction for legal actions is in New York Supreme Court or the U.S. District Court for the Southern District of New York. The prevailing party in enforcement actions will be reimbursed for attorney's fees[175](index=175&type=chunk) [16. WAIVER OF JURY TRIAL](index=37&type=section&id=16.%20WAIVER%20OF%20JURY%20TRIAL) The Company irrevocably waives its right to a jury trial for any legal proceeding related to this Agreement or its transactions - The Company irrevocably waives its right to a jury trial for any legal proceeding related to this Agreement or its transactions[176](index=176&type=chunk) [17. Counterparts](index=37&type=section&id=17.%20Counterparts) The Agreement can be executed in multiple counterparts, including electronically, with each considered an original - The Agreement can be executed in multiple counterparts, including electronically, with each considered an original[176](index=176&type=chunk) [18. Headings](index=37&type=section&id=18.%20Headings) Section headings are for convenience only and do not affect the Agreement's construction - Section headings are for convenience only and do not affect the Agreement's construction[177](index=177&type=chunk) [Signatures](index=38&type=section&id=Signatures) This section contains the signatures of Mawson Infrastructure Group Inc. and H.C. Wainwright & Co., LLC, confirming agreement to the terms - The Agreement is signed by Kaliste Saloom, Interim Chief Executive Officer, General Counsel and Corporate Secretary for Mawson Infrastructure Group Inc., and Edward D. Silvera, Chief Operating Officer for H.C. Wainwright & Co., LLC[179](index=179&type=chunk)[180](index=180&type=chunk) [ANNEX I: Form of Terms Agreement](index=39&type=section&id=ANNEX%20I%3A%20Form%20of%20Terms%20Agreement) Annex I is a template for a Terms Agreement for direct sales of shares to the Manager as principal, incorporating the main agreement - Annex I is a template for a 'Terms Agreement' for direct sales of 'Purchased Shares' to the Manager as principal. It incorporates the main 'At The Market Offering Agreement' by reference, with representations and warranties deemed made as of the Terms Agreement date[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk)

[Summary Results and Highlights](index=1&type=section&id=Summary%20Results%20and%20Highlights) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Ron Gusek highlighted solid Q3 2025 operational results, record efficiency, and safety, driven by digiPrime and StimCommander, with a strengthening power business - Liberty achieved revenue of **$947 million** and Adjusted EBITDA of **$128 million** in Q3 2025, despite a slowdown in industry completions activity and market pricing pressure[3](index=3&type=chunk) - The company delivered the highest combined average daily pumping efficiency and safety performance in Liberty's history[3](index=3&type=chunk) - digiPrime pumps are realizing measurable cost improvements, with early indications showing total maintenance cost savings greater than **30%** relative to conventional technologies[3](index=3&type=chunk) - AI-driven automated and intelligent rate and pressure control software, StimCommander, is driving a **65% improvement** in time to deliver desired fluid injection rate and a **5% to 10% improvement** in hydraulic efficiency[3](index=3&type=chunk) - Liberty's power opportunities are strengthening, with total power generation capacity increasing to over **one gigawatt** expected to be delivered through 2027[3](index=3&type=chunk)[6](index=6&type=chunk) [Key Financial & Operational Highlights](index=1&type=section&id=Key%20Financial%20%26%20Operational%20Highlights) Liberty Energy reported Q3 2025 revenue of **$947 million** and Adjusted EBITDA of **$128 million**, increased its dividend, and achieved record efficiency with Forge launch Q3 2025 Key Financial Metrics | Metric | Q3 2025 | Sequential Change | | :----- | :------ | :------------------ | | Revenue | $947 million | 9% decrease | | Net income | $43 million | | | Fully diluted EPS | $0.26 | | | Adjusted EBITDA | $128 million | | - Distributed **$13 million** to shareholders through cash dividends and increased quarterly cash dividend by **13%** to **$0.09 per share** beginning fourth quarter of 2025[5](index=5&type=chunk) - Achieved quarterly record pumping efficiency and tons of sand sold from Liberty mines[5](index=5&type=chunk) - Launched Forge, Liberty's large language model for intelligent asset orchestration[5](index=5&type=chunk) - Appointed Alice Yake (Jackson) to the Board of Directors, bringing decades of experience in energy infrastructure and power generation[5](index=5&type=chunk) [Business Outlook](index=2&type=section&id=Outlook) [Industry Frac Activity Outlook](index=2&type=section&id=Industry%20Frac%20Activity%20Outlook) Industry frac activity moderates due to uncertainty, accelerating attrition, and setting the stage for improved supply/demand and pricing in late 2026 for next-gen fleets - Industry frac activity has fallen below levels required to sustain North American oil production, driven by macroeconomic uncertainty and producers moderating completions[7](index=7&type=chunk) - The moderation in activity is anticipated to be transitory, with global oil oversupply expected to peak during the first half of 2026, and improving frac fundamentals later in 2026[8](index=8&type=chunk) - Lower industry activity and underutilized fleets are driving pricing pressure, accelerating equipment attrition and fleet cannibalization, which is expected to lead to a more constructive supply and demand balance[9](index=9&type=chunk) - The outlook for higher quality, next-generation fleets (like Liberty's digiTechnologies platform) remains strong due to demand for fuel savings, emissions benefits, and operational efficiencies[10](index=10&type=chunk) [Power Business Outlook](index=2&type=section&id=Power%20Business%20Outlook) Structural power demand strengthens from AI, electrification, and reshoring, positioning Liberty's on-site solutions to address grid reliability and capacity challenges - Structural demand for power continues to strengthen, evidenced by large-scale, long-duration power commitments across the industry[11](index=11&type=chunk) - AI compute load, broader electrification trends, and industrial reshoring efforts are driving meaningful long-term growth opportunities and incremental, steady base load demand[11](index=11&type=chunk) - Liberty's on-site power solutions provide consumers with reliability and clarity around power costs, serving as a strategic hedge against potentially significant increases in grid power prices, addressing grid reliability and capacity challenges[11](index=11&type=chunk) [Shareholder Returns](index=2&type=section&id=Cash%20Dividend) [Cash Dividend Details](index=2&type=section&id=Cash%20Dividend%20Details) Liberty paid a Q3 2025 cash dividend of **$0.08 per share** (**$13 million** total) and increased the Q4 2025 dividend by **13%** to **$0.09 per share**, reflecting confidence in future performance Quarterly Cash Dividend Details | Dividend Event | Amount per share | Total (approx.) | Payment Date | Record Date | | :------------- | :--------------- | :-------------- | :----------- | :---------- | | Q3 2025 Paid | $0.08 | $13 million | (during Q3) | (during Q3) | | Q4 2025 Declared | $0.09 (13% increase) | | Dec 18, 2025 | Dec 4, 2025 | - Future declarations of quarterly cash dividends are subject to Board approval and may be adjusted based on market conditions and capital availability[13](index=13&type=chunk) [Financial Performance](index=3&type=section&id=Third%20Quarter%20Results) [Income Statement Overview](index=3&type=section&id=Income%20Statement%20Overview) Liberty's Q3 2025 revenue decreased **17%** YoY and **9%** QoQ to **$947 million**, with net income declining to **$43 million** from **$74 million** in Q3 2024 Income Statement Summary | Metric | Q3 2025 | Q3 2024 | Q2 2025 | YoY Change | QoQ Change | | :----- | :------ | :------ | :------ | :--------- | :--------- | | Revenue | $947 million | $1.1 billion | $1.0 billion | -17% | -9% | | Net income | $43 million | $74 million | $71 million | -41.89% | -39.39% | [Non-GAAP Financial Measures Performance](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Performance) Q3 2025 Adjusted EBITDA was **$128 million**, a **48%** YoY and **29%** QoQ decrease, with Adjusted Net (Loss) Income turning negative at (**$10 million**) Non-GAAP Financial Measures | Metric | Q3 2025 | Q3 2024 | Q2 2025 | YoY Change | QoQ Change | | :----- | :------ | :------ | :------ | :--------- | :--------- | | Adjusted EBITDA | $128 million | $248 million | $181 million | -48% | -29% | | Adjusted Net (Loss) Income | ($10 million) | $76 million | $20 million | -113.16% | -150% | | Fully diluted EPS | $0.26 | $0.44 | $0.43 | -40.91% | -39.53% | | Adjusted Net (Loss) Income per Diluted Share | $(0.06) | $0.45 | $0.12 | -113.33% | -150% | [Financial Position](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity) [Balance Sheet and Liquidity Overview](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity%20Overview) As of September 30, 2025, Liberty had **$13 million** cash, **$253 million** total debt, and **$146 million** total liquidity, expanding its credit facility to **$750 million** in July 2025 Balance Sheet and Liquidity | Metric | As of Sep 30, 2025 | | :----- | :----------------- | | Cash on hand | $13 million | | Total debt | $253 million | | Total liquidity | $146 million | - In July 2025, Liberty expanded its credit facility to provide for a **$225 million** increase in aggregate commitments to **$750 million**, subject to borrowing base limitations[17](index=17&type=chunk) [Corporate Information](index=3&type=section&id=Corporate%20Information) [Conference Call Details](index=3&type=section&id=Conference%20Call) Liberty will host a conference call on October 17, 2025, at 8:30 a.m. MT to discuss Q3 2025 results, featuring CEO Ron Gusek and CFO Michael Stock, with live and replay access details provided - Liberty will host a conference call to discuss Q3 2025 results on Friday, October 17, 2025, at 8:30 a.m. Mountain Time (10:30 a.m. Eastern Time)[18](index=18&type=chunk) - Presenting Liberty's results will be Ron Gusek, President and Chief Executive Officer, and Michael Stock, Chief Financial Officer[18](index=18&type=chunk) - Access details for the live webcast and a telephone replay (available until October 24, 2025) are provided[19](index=19&type=chunk) [About Liberty Energy Inc.](index=3&type=section&id=About%20Liberty) Liberty Energy Inc. is a leading North American energy services company providing completion services for oil, natural gas, and geothermal, also offering advanced distributed power solutions via Liberty Power Innovations - Liberty Energy Inc. is a leading energy services company and one of the largest providers of completion services and technologies to onshore oil, natural gas, and enhanced geothermal energy producers in North America[20](index=20&type=chunk) - The company owns and operates Liberty Power Innovations LLC, which provides advanced distributed power and energy storage solutions for commercial and industrial, data center, energy, and mining industries[20](index=20&type=chunk) - Founded in 2011 and headquartered in Denver, Colorado, Liberty focuses on value creation through innovation and next-generation technology[20](index=20&type=chunk) [Non-GAAP Financial Measures Explanation](index=4&type=section&id=Non-GAAP%20Financial%20Measures) [Definition and Use of Non-GAAP Measures](index=4&type=section&id=Definition%20and%20Use%20of%20Non-GAAP%20Measures) This section defines non-GAAP measures like EBITDA, Adjusted EBITDA, Adjusted Net Income, and ROCE, explaining their use for assessing financial performance by excluding non-recurring items, while cautioning they are not U.S. GAAP and may not be comparable - The earnings release includes unaudited non-GAAP financial measures such as EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per Diluted Share, and Adjusted Pre-Tax Return on Capital Employed ('ROCE')[21](index=21&type=chunk) - Adjusted EBITDA is defined as EBITDA adjusted to eliminate effects of items like non-cash stock-based compensation, start-up costs, fleet lay-down costs, gains/losses on asset disposal/investments, bad debt reserves, and other non-recurring expenses[21](index=21&type=chunk) - Adjusted Net (Loss) Income and Adjusted Net (Loss) Income per Diluted Share exclude after-tax impacts of unusual or one-time benefits or costs, such as gain or loss on investments, net and transaction and other costs[23](index=23&type=chunk) - ROCE is presented as a measure to evaluate profitability and the efficiency with which management has employed capital over time, calculated as the ratio of adjusted pre-tax net income to Average Capital Employed[24](index=24&type=chunk) - These non-GAAP measures are used by the board, management, investors, and lenders to assess financial performance on a consistent basis, but they do not have standardized meanings and are not substitutes for U.S. GAAP measures[22](index=22&type=chunk)[25](index=25&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) [Forward-Looking Statements Disclaimer](index=5&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section advises that the earnings release contains forward-looking statements regarding future performance, market outlook, and strategies, subject to inherent risks and uncertainties, cautioning that actual results may differ materially, and recommends reviewing SEC filings for risk factors - The information includes 'forward-looking statements' concerning expected growth, future operating results, industry outlooks, business strategy, capital expenditures, and financial position[26](index=26&type=chunk) - These statements involve certain assumptions, risks, and uncertainties, and actual results may differ materially from those indicated or implied[26](index=26&type=chunk) - Liberty has no obligation to affirm or update such information, except as required by law, and advises readers to consider risk factors in its most recent Annual Report on Form 10-K and other SEC filings[26](index=26&type=chunk)[27](index=27&type=chunk) [Contact Information](index=5&type=section&id=Contact) [Investor Relations Contact](index=5&type=section&id=Investor%20Relations%20Contact) Contact information for Liberty Energy's investor relations is provided, including the Chief Financial Officer and Vice President of Investor Relations, with phone and email details - Contact for investor relations: Michael Stock (Chief Financial Officer) and Anjali Voria, CFA (Vice President of Investor Relations)[28](index=28&type=chunk) - Phone: 303-515-2851; Email: IR@libertyenergy.com[28](index=28&type=chunk) [Selected Financial Data (Tables)](index=6&type=section&id=Selected%20Financial%20Data%20(Tables)) [Statement of Operations Data](index=6&type=section&id=Statement%20of%20Operations%20Data) This table presents unaudited statement of operations data for the three and nine months ended September 30, 2025, and comparable periods, detailing revenue, costs, operating income/loss, net income, and EPS Statement of Operations Data (Amounts in Thousands, Except for Per Share Data) | | Three Months Ended | | | | Nine Months Ended | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Sep 30, 2025 | Sep 30, 2024 | | **Statement of Operations Data:** | (amounts in thousands, except for per share data) | | | | | | | Revenue | $ 947,397 | $ 1,042,521 | $ 1,138,578 | $ 2,967,379 | $ 3,371,587 | | Costs of services (exclusive of | | | | | | | | depreciation, depletion, and | | | | | | | | amortization shown separately below) | 769,761 | 812,107 | 840,274 | 2,343,484 | 2,458,752 | | General and administrative (1) | 58,284 | 58,344 | 58,614 | 182,403 | 169,300 | | Transaction and other costs | — | — | — | 811 | — | | Depreciation, depletion, and | | | | | | | | amortization | 122,981 | 129,366 | 126,395 | 380,089 | 372,886 | | (Gain) loss on disposal of assets, net | (1,210) | 5,631 | 6,017 | 7,766 | 6,105 | | Total operating costs and expenses | 949,816 | 1,005,448 | 1,031,300 | 2,914,553 | 3,007,043 | | Operating (loss) income | (2,419) | 37,073 | 107,278 | 52,826 | 364,544 | | (Gain) loss on investments, net | (68,353) | (68,242) | 2,727 | (155,883) | (4,474) | | Interest expense, net | 10,902 | 10,162 | 8,589 | 30,607 | 23,715 | | Net income before income taxes | 55,032 | 95,153 | 95,962 | 178,102 | 345,303 | | Income tax expense | 11,977 | 24,137 | 22,158 | 43,920 | 81,186 | | Net income | 43,055 | 71,016 | 73,804 | 134,182 | 264,117 | | Net income per common share: | | | | | | | | Basic | $ 0.27 | $ 0.44 | $ 0.45 | $ 0.83 | $ 1.59 | | Diluted | $ 0.26 | $ 0.43 | $ 0.44 | $ 0.81 | $ 1.55 | | Weighted average common shares | | | | | | | | outstanding: | | | | | | | | Basic | 161,959 | 161,865 | 164,741 | 161,921 | 165,755 | | Diluted | 165,066 | 164,243 | 168,595 | 165,126 | 169,947 | | Other Financial and Operational Data | | | | | | | | Capital expenditures (2) | $ 113,034 | $ 134,046 | $ 162,835 | $ 367,958 | $ 438,909 | | Adjusted EBITDA (3) | $ 127,679 | $ 180,798 | $ 247,811 | $ 476,627 | $ 765,853 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This table provides unaudited condensed consolidated balance sheet data as of September 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity Condensed Consolidated Balance Sheets (Amounts in Thousands) | | | September 30, | | December 31, | | :--- | :--- | :--- | :--- | :--- | | | | 2025 | | 2024 | | **Assets** | | | | | | Current assets: | | | | | | Cash and cash equivalents | $ | 13,454 | $ | 19,984 | | Accounts receivable and unbilled revenue | | 573,801 | | 539,856 | | Inventories | | 184,420 | | 203,469 | | Prepaids and other current assets | | 122,733 | | 85,214 | | Total current assets | | 894,408 | | 848,523 | | Property and equipment, net | | 1,925,871 | | 1,890,998 | | Operating and finance lease right-of-use assets | | 398,358 | | 356,435 | | Other assets | | 135,928 | | 119,402 | | Investment in equity securities | | 148,820 | | 81,036 | | **Total assets** | $ | **3,503,385** | $ | **3,296,394** | | **Liabilities and Equity** | | | | | | Current liabilities: | | | | | | Accounts payable and accrued liabilities | $ | 559,673 | $ | 571,305 | | Current portion of operating and finance lease liabilities | | 117,530 | | 95,218 | | Total current liabilities | | 677,203 | | 666,523 | | Long-term debt | | 253,000 | | 190,500 | | Noncurrent portion of operating and finance lease liabilities | | 255,454 | | 247,888 | | Deferred tax liability | | 180,883 | | 137,728 | | Payable pursuant to tax receivable agreements | | 67,180 | | 74,886 | | **Total liabilities** | | **1,433,720** | | **1,317,525** | | Stockholders' equity: | | | | | | Common stock | | 1,620 | | 1,619 | | Additional paid in capital | | 970,123 | | 977,484 | | Retained earnings | | 1,113,968 | | 1,019,517 | | Accumulated other comprehensive loss | | (16,046) | | (19,751) | | **Total stockholders' equity** | | **2,069,665** | | **1,978,869** | | **Total liabilities and equity** | $ | **3,503,385** | $ | **3,296,394** | [Reconciliation of Net Income to EBITDA and Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA%20and%20Adjusted%20EBITDA) This table provides a reconciliation of net income to EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2025, and comparable periods, detailing the specific adjustments made to arrive at these non-GAAP measures Reconciliation of Net Income to EBITDA and Adjusted EBITDA (Amounts in Thousands) | | | | | Three Months Ended | | | | | Nine Months Ended | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | Sep 30, | | | Jun 30, | | Sep 30, | | | Sep 30, | | | | 2025 | | | 2025 | | 2024 | 2025 | | | 2024 | | Net income | $ | 43,055 | $ | 71,016 | $ | 73,804 | $ | 134,182 | $ | 264,117 | | Depreciation, depletion, and | | | | | | | | | | | | amortization | | 122,981 | | 129,366 | | 126,395 | | 380,089 | | 372,886 | | Interest expense, net | | 10,902 | | 10,162 | | 8,589 | | 30,607 | | 23,715 | | Income tax expense | | 11,977 | | 24,137 | | 22,158 | | 43,920 | | 81,186 | | **EBITDA** | $ | **188,915** | $ | **234,681** | $ | **230,946** | $ | **588,798** | $ | **741,904** | | Stock-based compensation expense | | 7,301 | | 8,101 | | 8,121 | | 33,482 | | 22,318 | | (Gain) loss on investments, net | | (68,353) | | (68,242) | | 2,727 | | (155,883) | | (4,474) | | (Gain) loss on disposal of assets, net | | (1,210) | | 5,631 | | 6,017 | | 7,766 | | 6,105 | | Transaction and other costs | | — | | — | | — | | 811 | | — | | Provision for credit losses | | 1,026 | | 627 | | — | | 1,653 | | — | | **Adjusted EBITDA** | $ | **127,679** | $ | **180,798** | $ | **247,811** | $ | **476,627** | $ | **765,853** | [Reconciliation of Net Income and Net Income per Diluted Share to Adjusted Net (Loss) Income and Adjusted Net (Loss) Income per Diluted Share](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20and%20Net%20Income%20per%20Diluted%20Share%20to%20Adjusted%20Net%20(Loss)%20Income%20and%20Adjusted%20Net%20(Loss)%20Income%20per%20Diluted%20Share) This table reconciles GAAP net income and diluted EPS to Adjusted Net (Loss) Income and Adjusted Net (Loss) Income per Diluted Share for the three and nine months ended September 30, 2025, and comparable periods, showing non-GAAP adjustments Reconciliation of Net Income and Net Income per Diluted Share to Adjusted Net (Loss) Income and Adjusted Net (Loss) Income per Diluted Share (Amounts in Thousands, Except for Per Share Data) | | | | Three Months Ended | | | | | | Nine Months Ended | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | Sep 30, | | Jun 30, | | Sep 30, | | Sep 30, | | | 2024 | | | 2025 | | 2025 | | 2024 | | 2025 | | | | | Net income | $ | 43,055 | $ | 71,016 | $ | 73,804 | $ | 134,182 | $ | 264,117 | | Adjustments: | | | | | | | | | | | | Less: (Gain) Loss on investments, net | | (68,353) | | (68,242) | | 2,727 | | (155,883) | | (4,474) | | Add back: Transaction and other costs | | — | | — | | — | | 811 | | — | | Total adjustments, before income | | | | | | | | | | | | taxes | | (68,353) | | (68,242) | | 2,727 | | (155,072) | | (4,474) | | Income tax effect of adjustments | | (15,756) | | (17,373) | | 656 | | (38,303) | | (1,051) | | **Adjusted Net (Loss) Income** | $ | **(9,542)** | $ | **20,147** | $ | **75,875** | $ | **17,413** | $ | **260,694** | | Diluted weighted average common | | | | | | | | | | | | shares outstanding | | 165,066 | | 164,243 | | 168,595 | | 165,126 | | 169,947 | | Net income per diluted share | $ | 0.26 | $ | 0.43 | $ | 0.44 | $ | 0.81 | $ | 1.55 | | **Adjusted Net (Loss) Income per Diluted** | | | | | | | | | | | | **Share** | $ | **(0.06)** | $ | **0.12** | $ | **0.45** | $ | **0.11** | $ | **1.53** | [Calculation of Adjusted Pre-Tax Return on Capital Employed](index=9&type=section&id=Calculation%20of%20Adjusted%20Pre-Tax%20Return%20on%20Capital%20Employed) This table details the calculation of Adjusted Pre-Tax Return on Capital Employed (ROCE) for the twelve months ended September 30, 2025, showing adjustments to net income and average capital employed, resulting in an ROCE of **2%** Calculation of Adjusted Pre-Tax Return on Capital Employed (Amounts in Thousands) | | | Twelve Months Ended | | | | :--- | :--- | :--- | :--- | :--- | | | | September 30, | | | | | | 2025 | | 2024 | | Net income | $ | 186,075 | | | | Add back: Income tax expense | | 49,995 | | | | Add back: Loss on remeasurement of liability under tax receivable agreements (1) | | 3,210 | | | | Less: Gain on investments, net | | (200,636) | | | | Add back: Transaction and other costs | | 811 | | | | **Adjusted Pre-tax net income** | $ | **39,455** | | | | **Capital Employed** | | | | | | Total debt | $ | 253,000 | $ | 123,000 | | Total equity | | 2,069,665 | | 1,968,998 | | **Total Capital Employed** | $ | **2,322,665** | $ | **2,091,998** | | **Average Capital Employed (2)** | $ | **2,207,332** | | | | **Adjusted Pre-Tax Return on Capital Employed (3)** | | **2 %** | | |