HUNTINGTON BANCSHARES DEP(HBANM) - 2025 Q3 - Quarterly Results

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