First Citizens BancShares(FCNCA) - 2025 Q2 - Quarterly Results

Summary Financial Data & Key Metrics Results of Operations The company's net interest income, net income, and pre-tax, pre-provision net revenue (PPNR) showed a decline in Q2 2025 compared to Q2 2024, both on a GAAP and adjusted basis, while provision for credit losses increased Results of Operations Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Net interest income | $1,695 | $1,663 | $1,821 | $3,358 | $3,638 | | Provision for credit losses | $115 | $154 | $95 | $269 | $159 | | Net income | $575 | $483 | $707 | $1,058 | $1,438 | | Net income available to common stockholders | $561 | $468 | $691 | $1,029 | $1,407 | | Adjusted net income available to common stockholders | $593 | $513 | $739 | $1,106 | $1,508 | | Pre-tax, pre-provision net revenue (PPNR) | $873 | $805 | $1,074 | $1,678 | $2,142 | | Adjusted PPNR | $929 | $865 | $1,132 | $1,794 | $2,273 | Per Share Information Diluted EPS and adjusted diluted EPS decreased significantly year-over-year for both the three and six-month periods ending June 30, 2025, while book value and tangible book value per common share showed an increase compared to June 30, 2024 Per Share Information Data | Metric | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Diluted earnings per common share (EPS) | $42.36 | $34.47 | $47.54 | $76.73 | $96.80 | | Adjusted diluted EPS | $44.78 | $37.79 | $50.87 | $82.48 | $103.79 | | Book value per common share at period end | $1,637.72 | $1,596.30 | $1,487.00 | | | | Tangible book value per common share (TBV) at period end | $1,594.38 | $1,553.06 | $1,443.92 | | | Key Performance Metrics Profitability ratios (ROA, ROE, ROTCE) and Net Interest Margin (NIM) declined year-over-year for Q2 2025, while the efficiency ratio worsened, indicating higher expenses relative to revenue Key Performance Metrics Data | Metric | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Return on average assets (ROA) | 1.01 % | 0.87 % | 1.30 % | 0.94 % | 1.33 % | | Adjusted ROA | 1.07 % | 0.95 % | 1.39 % | 1.01 % | 1.42 % | | Return on average common equity (ROE) | 10.41 % | 8.79 % | 13.13 % | 9.61 % | 13.54 % | | Adjusted ROE | 11.00 % | 9.64 % | 14.05 % | 10.33 % | 14.52 % | | Efficiency ratio | 63.22 % | 64.97 % | 56.36 % | 64.08 % | 56.33 % | | Adjusted efficiency ratio | 57.92 % | 59.62 % | 50.77 % | 58.75 % | 50.53 % | | Net interest margin (NIM) | 3.26 % | 3.26 % | 3.64 % | 3.26 % | 3.66 % | Select Balance Sheet Items Total loans and leases remained relatively stable quarter-over-quarter but increased year-over-year, while total deposits grew. The loan to deposit ratio decreased, and noninterest-bearing deposits as a percentage of total deposits slightly declined Select Balance Sheet Items Data | Metric (Dollars in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------- | :------------ | | Total investment securities | $43,346 | $44,319 | $37,666 | | Total loans and leases | $141,269 | $141,358 | $139,341 | | Total deposits | $159,935 | $159,325 | $151,079 | | Total borrowings | $38,112 | $38,406 | $37,458 | | Loan to deposit ratio | 88.33 % | 88.72 % | 92.23 % | | Noninterest-bearing deposits to total deposits | 25.56 % | 25.59 % | 26.49 % | Capital Ratios Capital ratios, including Total risk-based, Tier 1, Common equity Tier 1, and Tier 1 leverage, all decreased as of June 30, 2025, compared to both the previous quarter and the prior year Capital Ratios Data | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------- | :------------ | | Total risk-based capital ratio | 14.25 % | 15.23 % | 15.45 % | | Tier 1 risk-based capital ratio | 12.63 % | 13.35 % | 13.87 % | | Common equity Tier 1 ratio | 12.12 % | 12.81 % | 13.33 % | | Tier 1 leverage capital ratio | 9.64 % | 9.75 % | 10.29 % | - Capital ratios as of the current quarter-end are preliminary pending completion of quarterly regulatory filings[1] Asset Quality Asset quality metrics showed a slight deterioration, with nonaccrual loans to total loans and leases increasing, while the allowance for loan and lease losses (ALLL) to loans and leases decreased year-over-year Asset Quality Data | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------- | :------------ | | Nonaccrual loans to total loans and leases | 0.93 % | 0.85 % | 0.82 % | | Allowance for loan and lease losses (ALLL) to loans and leases | 1.18 % | 1.19 % | 1.22 % | | Net charge-off ratio for the period | 0.33 % | 0.41 % | 0.38 % | GAAP Financial Statements Income Statement (Unaudited) The unaudited income statement for Q2 2025 shows a decrease in total interest income and net interest income compared to Q2 2024, alongside an increase in noninterest expense, leading to lower net income Income Statement (Unaudited) Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Total interest income | $2,945 | $2,895 | $3,130 | $5,840 | $6,214 | | Total interest expense | $1,250 | $1,232 | $1,309 | $2,482 | $2,576 | | Net interest income | $1,695 | $1,663 | $1,821 | $3,358 | $3,638 | | Provision for credit losses | $115 | $154 | $95 | $269 | $159 | | Total noninterest income | $678 | $635 | $639 | $1,313 | $1,266 | | Total noninterest expense | $1,500 | $1,493 | $1,386 | $2,993 | $2,762 | | Net income | $575 | $483 | $707 | $1,058 | $1,438 | | Diluted earnings per common share | $42.36 | $34.47 | $47.54 | $76.73 | $96.80 | Balance Sheet (Unaudited) The unaudited balance sheet as of June 30, 2025, shows an increase in total assets and total deposits compared to June 30, 2024, while total stockholders' equity slightly decreased Balance Sheet (Unaudited) Data | Metric (Dollars in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------- | :------------ | | Total assets | $229,653 | $228,822 | $219,827 | | Loans and leases, net of allowance for loan and lease losses | $139,597 | $139,678 | $137,641 | | Total deposits | $159,935 | $159,325 | $151,079 | | Total liabilities | $207,357 | $206,527 | $197,340 | | Total stockholders' equity | $22,296 | $22,295 | $22,487 | Notable Items and Adjustments Definition and Impact of Notable Items Notable items are non-GAAP adjustments for infrequent transactions and certain recurring noncash items, which management excludes to provide a clearer view of operational performance and comparability. These adjustments had a positive impact on adjusted net income and diluted EPS across all periods presented - Notable items include income and expense for infrequent transactions and certain recurring items (typically noncash) that management believes should be excluded from adjusted measures (non-GAAP) to enhance understanding of operations and comparability to historical periods[4] Definition and Impact of Notable Items Data | Metric | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Impact of notable items on adjusted net income | $32 | $45 | $48 | $77 | $101 | | Impact of notable items on adjusted diluted EPS | $2.42 | $3.32 | $3.33 | $5.75 | $6.99 | Specific Notable Item Explanations Specific notable items include the deduction of depreciation and maintenance from rental income for operating leases, a gain on litigation settlement in Q1 2024, integration-related professional fees in Q1 and Q2 2024, and various accruals, impairments, and litigation reserve changes in other noninterest expenses for Q1 and Q2 2025 - Depreciation and maintenance and other operating lease expenses are deducted from rental income on operating lease equipment to calculate adjusted rental income (non-GAAP), with no net impact to earnings as adjusted noninterest income and expense are reduced by the same amount[5] - Other noninterest income for 1Q24 included a gain on settlement of litigation[5] - Professional fees included expenses related to integration activities in 1Q24 and 2Q24[6] - Other noninterest expense included an accrual from a vendor dispute and an increase in litigation reserve in 2Q25, impairment of capitalized software and related projects in 1Q25, as well as litigation reserve releases in 1Q24 and 2Q24[6] Adjusted Financial Performance (Non-GAAP) Condensed Income Statements - Adjusted for Notable Items The adjusted condensed income statements, excluding notable items, show higher net income and diluted EPS compared to GAAP figures, reflecting management's view of core operational performance. Adjusted net income for Q2 2025 was $607 million, down from $755 million in Q2 2024 Condensed Income Statements - Adjusted for Notable Items Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Net interest income | $1,695 | $1,663 | $1,821 | $3,358 | $3,638 | | Noninterest income | $513 | $479 | $479 | $992 | $957 | | Noninterest expense | $1,279 | $1,277 | $1,168 | $2,556 | $2,322 | | Net income | $607 | $528 | $755 | $1,135 | $1,539 | | Net income available to common stockholders | $593 | $513 | $739 | $1,106 | $1,508 | | Diluted earnings per common share | $44.78 | $37.79 | $50.87 | $82.48 | $103.79 | Loan and Deposit Portfolio Analysis Loans and Leases by Class The total loan and lease portfolio remained stable quarter-over-quarter at $141.3 billion but saw a slight increase year-over-year. Commercial loans constitute the majority, with significant growth in commercial construction, while investor dependent loans decreased. Loan classes were recast in Q2 2025 for improved reporting Loans and Leases by Class Data | Loan Class (Dollars in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------- | :------------ | | Commercial | | | | | Commercial construction | $5,714 | $5,529 | $4,484 | | Owner occupied commercial mortgages | $17,053 | $16,951 | $16,233 | | Non-owner occupied commercial mortgages | $16,100 | $16,139 | $15,580 | | Commercial and industrial | $40,658 | $41,040 | $39,931 | | Leases | $2,028 | $2,022 | $2,049 | | Global fund banking | $28,677 | $28,572 | $28,915 | | Investor dependent | $2,777 | $2,958 | $3,806 | | Total commercial | $113,007 | $113,211 | $110,998 | | Consumer | | | | | Residential mortgage | $23,059 | $23,060 | $23,101 | | Revolving mortgage | $2,736 | $2,635 | $2,351 | | Consumer auto | $1,490 | $1,487 | $1,503 | | Consumer other | $977 | $965 | $1,388 | | Total consumer | $28,262 | $28,147 | $28,343 | | Total loans and leases | $141,269 | $141,358 | $139,341 | - During Q2 2025, loan classes were recast, with Global fund banking remaining separate but reported under the Commercial portfolio. Investor dependent–early stage and investor dependent–growth stage were combined into a single investor dependent loan class under Commercial. Cash flow dependent and innovation C&I were combined with the commercial and industrial loan class under Commercial[9][10] Deposits by Type Total deposits increased to $159.9 billion as of June 30, 2025, from $151.1 billion a year prior. While noninterest-bearing demand deposits remained relatively stable, interest-bearing deposits, particularly money market and savings, saw significant growth, offsetting a decline in time deposits Deposits by Type Data | Deposit Type (Dollars in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------- | :------------ | | Noninterest-bearing demand | $40,879 | $40,767 | $40,016 | | Checking with interest | $23,283 | $23,041 | $23,907 | | Money market | $37,654 | $37,705 | $32,641 | | Savings | $46,877 | $45,817 | $39,356 | | Time | $11,242 | $11,995 | $15,159 | | Total deposits | $159,935 | $159,325 | $151,079 | Credit Quality and Allowance for Loan and Lease Losses (ALLL) Credit quality showed some deterioration with nonaccrual loans increasing to $1,319 million and the nonaccrual loan ratio rising to 0.93% as of June 30, 2025, compared to the prior year. Net charge-offs for the quarter were $119 million, and the ALLL to loans ratio decreased to 1.18% Credit Quality and Allowance for Loan and Lease Losses (ALLL) Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Nonaccrual loans at period end | $1,319 | $1,206 | $1,141 | | | | Ratio of nonaccrual loans to total loans at period end | 0.93 % | 0.85 % | 0.82 % | | | | Net charge-offs | $(119) | $(144) | $(132) | $(263) | $(235) | | Net charge-off ratio | 0.33 % | 0.41 % | 0.38 % | 0.37 % | 0.35 % | | ALLL to loans ratio at period end | 1.18 % | 1.19 % | 1.22 % | | | | ALLL at end of period | $1,672 | $1,680 | $1,700 | $1,672 | $1,700 | Net Interest Income and Margin Analysis Average Balance Sheets, Yields and Rates (Three Months Ended) For the three months ended June 30, 2025, net interest income was $1,695 million, with a net interest margin of 3.26%. This represents a decrease in net interest income and margin compared to June 30, 2024, primarily due to lower yields on loans and interest-earning deposits, despite an increase in average interest-earning assets Average Balance Sheets, Yields and Rates (Three Months Ended) Data | Metric (Dollars in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------- | :------------ | | Average Loans and leases | $140,699 | $139,491 | $135,965 | | Yield on Loans and leases | 6.47 % | 6.49 % | 7.15 % | | Average Total interest-earning assets | $208,175 | $206,028 | $200,705 | | Yield on Total interest-earning assets | 5.67 % | 5.68 % | 6.26 % | | Average Total interest-bearing liabilities | $156,961 | $154,622 | $148,382 | | Rate on Total interest-bearing liabilities | 3.19 % | 3.22 % | 3.54 % | | Net interest income | $1,695 | $1,663 | $1,821 | | Net interest spread | 2.48 % | 2.46 % | 2.72 % | | Net interest margin | 3.26 % | 3.26 % | 3.64 % | Average Balance Sheets, Yields and Rates (Six Months Ended) For the six months ended June 30, 2025, net interest income was $3,358 million, with a net interest margin of 3.26%. This indicates a decline in both net interest income and margin compared to the same period in 2024, driven by lower yields on interest-earning assets Average Balance Sheets, Yields and Rates (Six Months Ended) Data | Metric (Dollars in millions) | June 30, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------ | | Average Loans and leases | $140,099 | $134,139 | | Yield on Loans and leases | 6.48 % | 7.15 % | | Average Total interest-earning assets | $207,108 | $199,646 | | Yield on Total interest-earning assets | 5.67 % | 6.25 % | | Average Total interest-bearing liabilities | $155,798 | $147,012 | | Rate on Total interest-bearing liabilities | 3.20 % | 3.52 % | | Net interest income | $3,358 | $3,638 | | Net interest spread | 2.47 % | 2.73 % | | Net interest margin | 3.26 % | 3.66 % | Non-GAAP Reconciliations Net Income and EPS Reconciliation This section reconciles GAAP net income and EPS to their adjusted non-GAAP counterparts by adding back the after-tax impact of notable items. For Q2 2025, adjusted net income was $607 million, and adjusted diluted EPS was $44.78 Net Income and EPS Reconciliation Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Net income (GAAP) | $575 | $483 | $707 | $1,058 | $1,438 | | Net income available to common stockholders (GAAP) | $561 | $468 | $691 | $1,029 | $1,407 | | Total notable items, after income tax | $32 | $45 | $48 | $77 | $101 | | Adjusted net income (non-GAAP) | $607 | $528 | $755 | $1,135 | $1,539 | | Adjusted net income available to common stockholders (non-GAAP) | $593 | $513 | $739 | $1,106 | $1,508 | | Diluted EPS (GAAP) | $42.36 | $34.47 | $47.54 | $76.73 | $96.80 | | Adjusted diluted EPS (non-GAAP) | $44.78 | $37.79 | $50.87 | $82.48 | $103.79 | Noninterest Income and Expense Reconciliation This reconciliation adjusts GAAP noninterest income and expense by removing the pre-tax impact of notable items. For Q2 2025, adjusted noninterest income was $513 million, and adjusted noninterest expense was $1,279 million Noninterest Income and Expense Reconciliation Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Noninterest income (GAAP) | $678 | $635 | $639 | $1,313 | $1,266 | | Impact of notable items, before income tax | $(165) | $(156) | $(160) | $(321) | $(309) | | Adjusted noninterest income (non-GAAP) | $513 | $479 | $479 | $992 | $957 | | Noninterest expense (GAAP) | $1,500 | $1,493 | $1,386 | $2,993 | $2,762 | | Impact of notable items, before income tax | $(221) | $(216) | $(218) | $(437) | $(440) | | Adjusted noninterest expense (non-GAAP) | $1,279 | $1,277 | $1,168 | $2,556 | $2,322 | PPNR Reconciliation This section reconciles GAAP net income to Pre-Tax, Pre-Provision Net Revenue (PPNR) and Adjusted PPNR by adding back provision for credit losses and income tax expense, and then adjusting for notable items. For Q2 2025, PPNR was $873 million, and Adjusted PPNR was $929 million PPNR Reconciliation Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Net income (GAAP) | $575 | $483 | $707 | $1,058 | $1,438 | | Plus: provision for credit losses | $115 | $154 | $95 | $269 | $159 | | Plus: income tax expense | $183 | $168 | $272 | $351 | $545 | | PPNR (non-GAAP) | $873 | $805 | $1,074 | $1,678 | $2,142 | | Impact of notable items | $56 | $60 | $58 | $116 | $131 | | Adjusted PPNR (non-GAAP) | $929 | $865 | $1,132 | $1,794 | $2,273 | ROA Reconciliation This section reconciles GAAP Return on Average Assets (ROA) to Adjusted ROA by incorporating the impact of notable items on net income. For Q2 2025, GAAP ROA was 1.01%, while Adjusted ROA was 1.07% ROA Reconciliation Data | Metric | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | ROA (GAAP) | 1.01 % | 0.87 % | 1.30 % | 0.94 % | 1.33 % | | Adjusted ROA (non-GAAP) | 1.07 % | 0.95 % | 1.39 % | 1.01 % | 1.42 % | PPNR ROA Reconciliation This section reconciles PPNR ROA to Adjusted PPNR ROA, reflecting the impact of notable items on PPNR. For Q2 2025, PPNR ROA was 1.54%, and Adjusted PPNR ROA was 1.64% PPNR ROA Reconciliation Data | Metric | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | PPNR ROA (non-GAAP) | 1.54 % | 1.45 % | 1.97 % | 1.49 % | 1.98 % | | Adjusted PPNR ROA (non-GAAP) | 1.64 % | 1.56 % | 2.08 % | 1.60 % | 2.10 % | ROE and ROTCE Reconciliation This section reconciles GAAP Return on Average Common Equity (ROE) to Adjusted ROE, and Return on Average Tangible Common Equity (ROTCE) to Adjusted ROTCE, by adjusting for notable items and intangible assets. For Q2 2025, GAAP ROE was 10.41%, Adjusted ROE was 11.00%, ROTCE was 10.69%, and Adjusted ROTCE was 11.30% ROE and ROTCE Reconciliation Data | Metric | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | ROE (GAAP) | 10.41 % | 8.79 % | 13.13 % | 9.61 % | 13.54 % | | Adjusted ROE (non-GAAP) | 11.00 % | 9.64 % | 14.05 % | 10.33 % | 14.52 % | | ROTCE (non-GAAP) | 10.69 % | 9.04 % | 13.53 % | 9.87 % | 13.97 % | | Adjusted ROTCE (non-GAAP) | 11.30 % | 9.91 % | 14.48 % | 10.61 % | 14.98 % | Tangible Common Equity to Tangible Assets Reconciliation This section reconciles GAAP total equity to total assets to the non-GAAP tangible common equity to tangible assets ratio by excluding preferred stock, goodwill, and other intangible assets. As of June 30, 2025, the tangible common equity to tangible assets ratio was 9.10% Tangible Common Equity to Tangible Assets Reconciliation Data | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------- | :------------ | | Total equity to total assets (GAAP) | 9.71 % | 9.74 % | 10.23 % | | Tangible common equity to tangible assets (non-GAAP) | 9.10 % | 9.13 % | 9.57 % | Book Value and Tangible Book Value Per Common Share Reconciliation This section reconciles GAAP book value per common share to non-GAAP tangible book value per common share by excluding goodwill and other intangible assets. As of June 30, 2025, book value per share was $1,637.72, and tangible book value per common share was $1,594.38 Book Value and Tangible Book Value Per Common Share Reconciliation Data | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------- | :------------ | | Book value per share | $1,637.72 | $1,596.30 | $1,487.00 | | Tangible book value per common share (non-GAAP) | $1,594.38 | $1,553.06 | $1,443.92 | Efficiency Ratio Reconciliation This section reconciles the GAAP efficiency ratio to the adjusted efficiency ratio by excluding the impact of notable items from noninterest expense and noninterest income. For Q2 2025, the GAAP efficiency ratio was 63.22%, while the adjusted efficiency ratio was 57.92% Efficiency Ratio Reconciliation Data | Metric | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Efficiency ratio (GAAP) | 63.22 % | 64.97 % | 56.36 % | 64.08 % | 56.33 % | | Adjusted efficiency ratio (non-GAAP) | 57.92 % | 59.62 % | 50.77 % | 58.75 % | 50.53 % | Rental Income on Operating Lease Equipment Reconciliation This section reconciles GAAP rental income on operating lease equipment to an adjusted non-GAAP measure by deducting direct expenses such as depreciation and maintenance. For Q2 2025, adjusted rental income on operating lease equipment was $117 million Rental Income on Operating Lease Equipment Reconciliation Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Rental income on operating lease equipment (GAAP) | $272 | $270 | $259 | $542 | $514 | | Less: depreciation on operating lease equipment | $100 | $98 | $98 | $198 | $194 | | Less: maintenance and other operating lease expenses | $55 | $58 | $60 | $113 | $105 | | Adjusted rental income on operating lease equipment (non-GAAP) | $117 | $114 | $101 | $231 | $215 | Net Interest Income & Net Interest Margin Reconciliation This section reconciles GAAP net interest income and net interest margin to non-GAAP measures by excluding the impact of purchase accounting accretion (PAA). For Q2 2025, net interest income excluding PAA was $1,629 million, and NIM excluding PAA was 3.14% Net Interest Income & Net Interest Margin Reconciliation Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Net interest income (GAAP) | $1,695 | $1,663 | $1,821 | $3,358 | $3,638 | | PAA | $66 | $75 | $140 | $142 | $298 | | Net interest income, excluding PAA (non-GAAP) | $1,629 | $1,588 | $1,681 | $3,216 | $3,340 | | NIM (GAAP) | 3.26 % | 3.26 % | 3.64 % | 3.26 % | 3.66 % | | NIM, excluding PAA (non-GAAP) | 3.14 % | 3.12 % | 3.36 % | 3.13 % | 3.36 % | Interest Income on Loans Reconciliation This section reconciles GAAP interest income on loans to a non-GAAP measure by excluding loan purchase accounting accretion (PAA). For Q2 2025, interest income on loans excluding loan PAA was $2,195 million Interest Income on Loans Reconciliation Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Interest income on loans (GAAP) | $2,270 | $2,236 | $2,422 | $4,506 | $4,776 | | Less: loan PAA | $75 | $84 | $145 | $159 | $308 | | Interest income on loans, excluding loan PAA (non-GAAP) | $2,195 | $2,152 | $2,277 | $4,347 | $4,468 | Income Tax Expense Reconciliation This section reconciles GAAP income tax expense to adjusted income tax expense by accounting for the impact of notable items. For Q2 2025, GAAP income tax expense was $183 million, and adjusted income tax expense was $207 million Income Tax Expense Reconciliation Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Income tax expense (GAAP) | $183 | $168 | $272 | $351 | $545 | | Impact of notable items | $24 | $15 | $10 | $39 | $30 | | Adjusted income tax expense (non-GAAP) | $207 | $183 | $282 | $390 | $575 |