EX-99.2 3 ex_993financialsupplement-.htm EX-99.2 Document

Dollars in millions, except per share data
Three Months EndedNine Months Ended
Summary Financial Data & Key MetricsSeptember 30, 2024June 30, 2024September 30, 2023September 30, 2024September 30, 2023
Results of Operations:
Net interest income$1,796 $1,821 $1,990 $5,434 $4,801 
Provision for credit losses117 95 192 276 1,126 
Net interest income after provision for credit losses1,679 1,726 1,798 5,158 3,675 
Noninterest income650 639 615 1,916 11,532 
Noninterest expense1,456 1,386 1,416 4,218 3,843 
Income before income taxes873 979 997 2,856 11,364 
Income tax expense234 272 245 779 412 
Net income639 707 752 2,077 10,952 
Preferred stock dividends15 16 15 46 44 
Net income available to common stockholders$624 $691 $737 $2,031 $10,908 
Adjusted net income available to common stockholders(1)
$660 $739 $813 $2,168 $1,870 
Pre-tax, pre-provision net revenue (PPNR)(1)
$990 $1,074 $1,189 $3,132 $12,490 
Per Share Information:
Diluted earnings per common share (EPS)$43.42 $47.54 $50.67 $140.26 $750.19 
Adjusted diluted EPS(1)
45.87 50.87 55.92 149.71 128.64 
Book value per common share at period end1,547.81 1,487.00 1,343.52 
Tangible book value per common share (TBV)(1) at period end
1,504.75 1,443.92 1,297.00 
Key Performance Metrics:
Return on average assets (ROA)1.15  %1.30  %1.41  %1.27  %7.81  %
Adjusted ROA(1)
1.22 1.39 1.55 1.35 1.37 
PPNR ROA(1)
1.79 1.97 2.23 1.91 8.91 
Adjusted PPNR ROA(1)
1.88 2.08 2.48 2.03 2.16 
Return on average common equity (ROE)11.30 13.13 15.20 12.73 90.46 
Adjusted ROE(1)
11.94 14.05 16.77 13.59 15.51 
Return on average tangible common equity (ROTCE)(1)
11.63 13.53 15.76 13.12 94.17 
Adjusted ROTCE(1)
12.29 14.48 17.39 14.00 16.15 
Efficiency ratio59.49 56.36 54.34 57.38 23.53 
Adjusted efficiency ratio(1)
54.15 50.77 46.04 51.72 49.85 
Net interest margin (NIM)(2)
3.53 3.64 4.07 3.62 3.95 
NIM, excluding purchase accounting accretion (PAA)(1), (2)
3.33 3.36 3.52 3.35 3.50 
Select Balance Sheet Items at Period End:
Total investment securities$38,663 $37,666 $26,818 
Total loans and leases138,695 139,341 133,202 
Total operating lease equipment, net9,186 8,945 8,661 
Total deposits151,574 151,079 146,233 
Total borrowings37,161 37,458 37,712 
Loan to deposit ratio91.50  %92.23  %91.09  %
Noninterest-bearing deposits to total deposits25.99 26.49 29.50 
Capital Ratios at Period End: (3)
Total risk-based capital ratio15.36  %15.45  %15.64  %
Tier 1 risk-based capital ratio13.78 13.87 13.83 
Common equity Tier 1 ratio13.24 13.33 13.24 
Tier 1 leverage capital ratio10.20 10.29 9.73 
Asset Quality at Period End:
Nonaccrual loans to total loans and leases0.90  %0.82  %0.68  %
Allowance for loan and lease losses (ALLL) to loans and leases1.21 1.22 1.26 
Net charge-off ratio for the period0.42 0.38 0.53 0.37 0.45 
(1) Denotes a non-GAAP measure. Refer to the non-GAAP reconciliation tables included at the end of this financial supplement for a reconciliation to the most directly comparable GAAP measure. “Adjusted” items exclude the impacts of Notable Items.
(2) Calculated net of average credit balances and deposits of factoring clients.
(3) Capital ratios as of the current quarter-end are preliminary pending completion of quarterly regulatory filings.


Dollars in millions, except share and per share data
Three Months EndedNine Months Ended
Income Statement (unaudited) September 30, 2024June 30, 2024September 30, 2023September 30, 2024September 30, 2023
Interest income
Interest and fees on loans$2,430 $2,422 $2,426 $7,206 $5,796 
Interest on investment securities358 330 180 970 407 
Interest on deposits at banks350 378 504 1,176 1,071 
Total interest income3,138 3,130 3,110 9,352 7,274 
Interest expense
Deposits1,004 975 769 2,907 1,632 
Borrowings338 334 351 1,011 841 
Total interest expense1,342 1,309 1,120 3,918 2,473 
Net interest income1,796 1,821 1,990 5,434 4,801 
Provision for credit losses117 95 192 276 1,126 
Net interest income after provision for credit losses1,679 1,726 1,798 5,158 3,675 
Noninterest income
Rental income on operating lease equipment262 259 248 776 719 
Fee income and other service charges81 77 71 233 188 
Client investment fees55 54 52 159 106 
Wealth management services54 52 49 157 140 
International fees29 30 30 87 63 
Service charges on deposit accounts45 44 44 133 112 
Factoring commissions19 19 21 55 60 
Cardholder services, net42 40 41 122 103 
Merchant services, net12 12 12 36 36 
Insurance commissions14 13 13 42 40 
Realized gain (loss) on sale of investment securities, net4 — (12)4 (26)
Fair value adjustment on marketable equity securities, net9 (2)(1)3 (20)
Gain on sale of leasing equipment, net5 4 10 19 18 
Gain on acquisition— — 12 — 9,891 
Loss on extinguishment of debt— — — (2)— 
Other noninterest income 19 37 25 92 102 
Total noninterest income650 639 615 1,916 11,532 
Noninterest expense
Depreciation on operating lease equipment99 98 95 293 275 
Maintenance and other operating lease expenses59 60 51 164 163 
Salaries and benefits788 745 727 2,277 1,922 
Net occupancy expense62 58 65 182 179 
Equipment expense128 126 117 368 308 
Professional fees42 24 12 91 43 
Third-party processing fees55 58 54 173 139 
FDIC insurance expense31 33 36 105 76 
Marketing expense20 18 22 52 78 
Acquisition-related expenses46 44 121 148 354 
Intangible asset amortization15 15 17 47 40 
Other noninterest expense111 107 99 318 266 
Total noninterest expense1,456 1,386 1,416 4,218 3,843 
Income before income taxes873 979 997 2,856 11,364 
Income tax expense234 272 245 779 412 
Net income$639 $707 $752 $2,077 $10,952 
Preferred stock dividends15 16 15 46 44 
Net income available to common stockholders$624 $691 $737 $2,031 $10,908 
Basic earnings per common share$43.42 $47.54 $50.71 $140.27 $750.79 
Diluted earnings per common share $43.42 $47.54 $50.67 $140.26 $750.19 
Weighted average common shares outstanding (basic) 14,375,97414,534,49914,528,31014,480,87414,527,718
Weighted average common shares outstanding (diluted) 14,375,97414,534,49914,539,13314,481,91914,539,383




Dollars in millions, except share data
Balance Sheet (unaudited) September 30, 2024June 30, 2024September 30, 2023
Assets
Cash and due from banks$862 $764 $791 
Interest-earning deposits at banks25,640 25,361 36,704 
Securities purchased under agreements to resell455 392 549 
Investment in marketable equity securities82 78 75 
Investment securities available for sale28,190 27,053 16,661 
Investment securities held to maturity10,391 10,535 10,082 
Assets held for sale68 92 58 
Loans and leases138,695 139,341 133,202 
Allowance for loan and lease losses(1,678)(1,700)(1,673)
Loans and leases, net of allowance for loan and lease losses137,017 137,641 131,529 
Operating lease equipment, net9,186 8,945 8,661 
Premises and equipment, net1,974 1,938 1,768 
Goodwill346 346 346 
Other intangible assets, net265 280 329 
Other assets6,091 6,402 6,212 
Total assets$220,567 $219,827 $213,765 
Liabilities
Deposits:
Noninterest-bearing$39,396 $40,016 $43,141 
Interest-bearing112,178 111,063 103,092 
Total deposits151,574 151,079 146,233 
Credit balances of factoring clients1,250 1,175 1,282 
Borrowings:
Short-term borrowings391 386 453 
Long-term borrowings36,770 37,072 37,259 
Total borrowings37,161 37,458 37,712 
Other liabilities7,754 7,628 8,149 
Total liabilities$197,739 $197,340 $193,376 
Stockholders’ equity
Preferred stock881881 881 
Common stock:
Class A - $1 par value13 14 14
Class B - $1 par value1 1 1 
Additional paid in capital3,389 4,099 4,106 
Retained earnings18,703 18,102 16,267 
Accumulated other comprehensive loss(159)(610)(880)
Total stockholders’ equity22,828 22,487 20,389 
Total liabilities and stockholders’ equity$220,567 $219,827 $213,765 



Dollars in millions, except share per share data
Notable Items (1)
Three Months EndedNine Months Ended
September 30, 2024June 30, 2024September 30, 2023September 30, 2024September 30, 2023
Noninterest income
Rental income on operating lease equipment (2)
$(158)$(158)$(146)$(457)$(438)
Realized (gain) loss on sale of investment securities, net(4)— 12 (4)26 
Fair value adjustment on marketable equity securities, net(9)2 1 (3)20 
Gain on sale of leasing equipment, net(5)(4)(10)(19)(18)
Gain on acquisition— — (12)— (9,891)
Loss on extinguishment of debt— — — 2 — 
Other noninterest income (3)
— — 8 (4)8 
Impact of notable items on adjusted noninterest income$(176)$(160)$(147)$(485)$(10,293)
Noninterest expense
Depreciation on operating lease equipment (2)
(99)(98)(95)(293)(275)
Maintenance and other operating lease equipment expense (2)
(59)(60)(51)(164)(163)
Professional fees (4)
— (1)— (4)— 
FDIC insurance special assessment— (2)— (11)— 
Acquisition-related expenses(46)(44)(121)(148)(354)
Intangible asset amortization(15)(15)(17)(47)(40)
Other noninterest expense (5)
(8)2 — — — 
Impact of notable items on adjusted noninterest expense$(227)$(218)$(284)$(667)$(832)
Day 2 provisions for loan and lease losses and off-balance sheet credit exposure$— $— $— $— $(716)
Benefit for credit losses on investment securities available for sale— — 3 — — 
Impact of notable items on adjusted provision for credit losses$— $— $3 $— $(716)
Impact of notable items on adjusted pre-tax income$51 $58 $134 $182 $(8,745)
Income tax impact (6)
1510 58 45 293 
Impact of notable items on adjusted net income$36 $48 $76 $137 $(9,038)
Impact of notable items on adjusted diluted EPS$2.45 $3.33 $5.25 $9.45 $(621.55)
(1) 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. Management utilizes both GAAP and adjusted measures (non-GAAP) to analyze BancShares’ performance. Refer to subsequent pages of this financial supplement for a reconciliation of non-GAAP measures to the most directly comparable GAAP measures.
(2) Depreciation and maintenance and other operating lease expenses are deducted from rental income on operating lease equipment to calculate adjusted rental income on operating lease equipment (non-GAAP). There is no net impact to earnings for this non-GAAP item because adjusted noninterest income and expense are reduced by the same amount. Management believes adjusted rental income on operating lease equipment (non-GAAP) is meaningful because it helps management monitor the performance and profitability of the operating leases after deducting direct expenses. Refer to subsequent pages of this financial supplement for a reconciliation of non-GAAP measures to the most directly comparable GAAP measures.
(3) Other noninterest income includes a gain on litigation settlement in the 2024 YTD period and a Silicon Valley Bridge Bank, N.A purchase accounting adjustment related to FX translation in the 2023 QTD and YTD periods.
(4) Professional fees include expenses related to integration activities.
(5) Other noninterest expense consists of a technology fee in 3Q24 and a litigation reserve release in 2Q24.
(6) For the periods presented, the income tax impact may include tax discrete items and changes in the estimated annualized effective tax rate.






Dollars in millions, except share and per share data
Condensed Income Statements (unaudited) - Adjusted for Notable Items (1)
Three Months EndedNine Months Ended
September 30, 2024June 30, 2024September 30, 2023September 30, 2024September 30, 2023
Interest income$3,138 $3,130 $3,110 $9,352 $7,274 
Interest expense1,342 1,309 1,120 3,918 2,473 
Net interest income1,796 1,821 1,990 5,434 4,801 
Provision for credit losses117 95 195 276 410 
Net interest income after provision for credit losses1,679 1,726 1,795 5,158 4,391 
Noninterest income474 479 468 1,431 1,239 
Noninterest expense1,229 1,168 1,132 3,551 3,011 
Income before income taxes924 1,037 1,131 3,038 2,619 
Income tax expense249 282 303 824 705 
Net income$675 $755 $828 $2,214 $1,914 
Preferred stock dividends15 16 15 46 44 
Net income available to common stockholders$660 $739 $813 $2,168 $1,870 
Basic earnings per common share $45.87 $50.87 $55.96 $149.72 $128.74 
Diluted earnings per common share45.87 50.87 55.92 149.71128.64
Weighted average common shares outstanding (basic)14,375,97414,534,49914,528,31014,480,87414,527,718
Weighted average common shares outstanding (diluted)14,375,97414,534,49914,539,13314,481,91914,539,383
(1) The GAAP income statements and notable items are included previously in this financial supplement. The condensed adjusted income statements above (non-GAAP) exclude the impact of notable items. Refer to the non-GAAP reconciliation tables at the end of this financial supplement for a reconciliation of non-GAAP measures to the most directly comparable GAAP measure.



Dollars in millions
Loans and Leases by Class (end of period)September 30, 2024June 30, 2024September 30, 2023
Commercial
Commercial construction$4,924 $4,484 $3,946 
Owner occupied commercial mortgages16,372 16,233 15,148 
Non-owner occupied commercial mortgages16,078 15,580 14,243 
Commercial and industrial30,867 30,684 28,717 
Leases2,020 2,049 2,108 
Total commercial$70,261 $69,030 $64,162 
Consumer
Residential mortgage$23,237 $23,101 $22,465 
Revolving mortgage2,455 2,351 2,067 
Consumer auto1,543 1,503 1,411 
Consumer other1,347 1,388 1,191 
Total consumer$28,582 $28,343 $27,134 
SVB
Global fund banking$27,114 $28,915 $27,516 
Investor dependent - early stage1,128 1,179 1,718 
Investor dependent - growth stage2,434 2,627 3,948 
Innovation C&I and cash flow dependent9,176 9,247 8,724 
Total SVB$39,852 $41,968 $41,906 
Total loans and leases$138,695 $139,341 $133,202 
Less: allowance for loan and lease losses(1,678)(1,700)(1,673)
Total loans and leases, net of allowance for loan and lease losses$137,017 $137,641 $131,529 
Deposits by Type (end of period)September 30, 2024June 30, 2024September 30, 2023
Noninterest-bearing demand$39,396 $40,016 $43,141 
Checking with interest23,216 23,907 23,461 
Money market34,567 32,636 30,079 
Savings40,266 39,361 32,708 
Time14,129 15,159 16,844 
Total deposits$151,574 $151,079 $146,233 



Dollars in millions
Three Months EndedNine Months Ended
Credit Quality and Allowance for Loan and Lease Losses (ALLL)September 30, 2024June 30, 2024September 30, 2023September 30, 2024September 30, 2023
Nonaccrual loans at period end$1,244 $1,141 $899 
Ratio of nonaccrual loans to total loans at period end0.90 %0.82 %0.68 %
Charge-offs$(177)$(159)$(199)$(464)$(437)
Recoveries32 27 23 84 54 
Net charge-offs$(145)$(132)$(176)$(380)$(383)
Net charge-off ratio0.42 %0.38 %0.53 %0.37 %0.45 %
ALLL to loans ratio at period end1.21 %1.22 %1.26 %
ALLL at beginning of period$1,700 $1,737 $1,637 $1,747 $922 
Initial PCD ALLL— — — — 220 
Day 2 provision for loan and lease losses— — — — 462 
Provision for loan and lease losses123 95 212 311 452 
Net charge-offs(145)(132)(176)(380)(383)
ALLL at end of period$1,678 $1,700 $1,673 $1,678 $1,673 



Dollars in millionsThree Months Ended
Average Balance Sheets, Yields and RatesSeptember 30, 2024June 30, 2024September 30, 2023
Average BalanceIncome/ExpenseYield/RateAverage BalanceIncome/ExpenseYield/RateAverage BalanceIncome/ExpenseYield/Rate
Loans and leases (1)(2)
$137,602 $2,430 7.03 %$135,965 $2,422 7.15 %$131,653 $2,426 7.30 %
Investment securities38,189 354 3.70 36,445 327 3.60 24,388 177 2.90 
Securities purchased under agreements to resell241 4 5.34 236 3 5.37 223 3 5.28 
Interest-earning deposits at banks26,167 350 5.33 28,059 378 5.42 37,456 504 5.34 
Total interest-earning assets (2)
$202,199 $3,138 6.18 %$200,705 $3,130 6.26 %$193,720 $3,110 6.37 %
Operating lease equipment, net$9,028 $8,888 $8,617 
Cash and due from banks717 750 911 
Allowance for loan and lease losses(1,725)(1,763)(1,714)
All other noninterest-earning assets10,247 10,311 10,460 
Total assets$220,466 $218,891 $211,994 
Interest-bearing deposits
Checking with interest$23,946 $134 2.23 %$24,427 $137 2.26 %$24,600 $134 2.15 %
Money market34,127 278 3.24 31,998 250 3.14 29,684 179 2.40 
Savings39,944 436 4.34 38,434 415 4.35 30,185 303 3.99 
Time deposits14,429 156 4.29 16,043 173 4.33 16,489 153 3.68 
Total interest-bearing deposits112,446 1,004 3.55 110,902 975 3.54 100,958 769 3.02 
Borrowings:
Securities sold under customer repurchase agreements384 — 0.55 380 — 0.46 454 — 0.35 
Short-term FHLB borrowings— — — — — — — — — 
Short-term borrowings384 — 0.55 380 — 0.46 454 — 0.35 
Federal Home Loan Bank borrowings— — 2.01 — — 2.00 444 6 5.47 
Senior unsecured borrowings361 2 2.59 375 3 2.49 382 2 2.46 
Subordinated debt900 8 3.34 901 7 3.32 1,042 10 3.65 
Other borrowings35,803 328 3.66 35,824 324 3.61 35,831 333 3.71 
Long-term borrowings37,064 338 3.64 37,100 334 3.60 37,699 351 3.72 
Total borrowings37,448 338 3.61 37,480 334 3.56 38,153 351 3.68 
Total interest-bearing liabilities$149,894 $1,342 3.57 %$148,382 $1,309 3.54 %$139,111 $1,120 3.20 %
Noninterest-bearing deposits$39,026 $39,344 $43,085 
Credit balances of factoring clients1,195 1,234 1,209 
Other noninterest-bearing liabilities7,500 7,879 8,473 
Stockholders' equity22,851 22,052 20,116 
Total liabilities and stockholders’ equity$220,466 $218,891 $211,994 
Net interest income$1,796 $1,821 $1,990 
Net interest spread (2)
2.61 %2.72 %3.17 %
Net interest margin (2)
3.53 %3.64 %4.07 %
(1) Loans and leases include nonaccrual loans and loans held for sale. Interest income on loans and leases includes loan PAA income and loan fees.
(2) The balance and rate presented are calculated net of average credit balances and deposits of factoring clients.
Note: Certain items above do not precisely recalculate as presented due to rounding.




Dollars in millionsNine Months Ended
Average Balance Sheets, Yields and RatesSeptember 30, 2024September 30, 2023
Average BalanceIncome/ExpenseYield/RateAverage BalanceIncome/ExpenseYield/Rate
Loans and leases (1)(2)
$135,302 $7,206 7.11 %$113,028 $5,796 6.85 %
Investment securities35,769 960 3.58 21,222 401 2.52 
Securities purchased under agreements to resell240 10 5.37 139 6 5.12 
Interest-earning deposits at banks29,192 1,176 5.38 27,794 1,071 5.15 
Total interest-earning assets (2)
$200,503 $9,352 6.22 %$162,183 $7,274 5.99 %
Operating lease equipment, net$8,908 $8,421 
Cash and due from banks751 891 
Allowance for loan and lease losses(1,762)(1,420)
All other noninterest-earning assets10,087 17,354 
Total assets$218,487 $187,429 
Interest-bearing deposits
Checking with interest$24,112 $401 2.22 %$21,783 $274 1.68 %
Money market32,358 760 3.14 26,686 407 2.04 
Savings38,296 1,242 4.33 23,410 601 3.44 
Time deposits15,712 504 4.28 14,404 350 3.25 
Total interest-bearing deposits110,478 2,907 3.51 86,283 1,632 2.53 
Borrowings:
Securities sold under customer repurchase agreements398 1 0.49 455 1 0.32 
Short-term FHLB borrowings— — — 145 5 4.79 
Short-term borrowings398 1 0.49 600 6 1.40 
Federal Home Loan Bank borrowings— — 2.00 3,084 120 5.22 
Senior unsecured borrowings371 7 2.53 686 11 2.16 
Subordinated debt904 23 3.32 1,045 29 3.59 
Other borrowings35,829 980 3.65 24,450 675 3.68 
Long-term borrowings37,104 1,010 3.63 29,265 835 3.80 
Total borrowings37,502 1,011 3.59 29,865 841 3.75 
Total interest-bearing liabilities$147,980 $3,918 3.53 %$116,148 $2,473 2.84 %
Noninterest-bearing deposits$39,339 $39,007 
Credit balances of factoring clients1,178 1,129 
Other noninterest-bearing liabilities7,793 14,143 
Stockholders' equity22,197 17,002 
Total liabilities and stockholders’ equity$218,487 $187,429 
Net interest income$5,434 $4,801 
Net interest spread (2)
2.69 %3.15 %
Net interest margin (2)
3.62 %3.95 %
(1) Loans and leases include nonaccrual loans and loans held for sale. Interest income on loans and leases includes loan PAA income and loan fees.
(2) The balance and rate presented are calculated net of average credit balances and deposits of factoring clients.
Note: Certain items above do not precisely recalculate as presented due to rounding.



Dollars in millions, except share and per share data
Three Months EndedNine Months Ended
Non-GAAP ReconciliationsSeptember 30, 2024June 30, 2024September 30, 2023September 30, 2024September 30, 2023
Net income and EPS
Net income (GAAP)a$639 $707 $752 $2,077 $10,952 
Preferred stock dividends15 16 15 46 44 
Net income available to common stockholders (GAAP)b$624 $691 $737 $2,031 $10,908 
Total notable items, after income taxc36 48 76 137 (9,038)
Adjusted net income (non-GAAP)d = (a+c)675 755 828 2,214 1,914 
Adjusted net income available to common stockholders (non-GAAP)e = (b+c)$660 $739 $813 $2,168 $1,870 
Weighted average common shares outstanding
Basicf14,375,974 14,534,499 14,528,310 14,480,874 14,527,718 
Dilutedg14,375,974 14,534,499 14,539,133 14,481,919 14,539,383 
EPS (GAAP)
Basicb/f$43.42 $47.54 $50.71 $140.27 $750.79 
Dilutedb/g43.42 47.54 50.67 140.26 750.19 
Adjusted EPS (non-GAAP)
Basice/f$45.87 $50.87 $55.96 $149.72 $128.74 
Dilutede/g45.87 50.87 55.92 149.71 128.64 
Noninterest income and expense
Noninterest income (GAAP)h$650 $639 $615 $1,916 $11,532 
Impact of notable items, before income tax(176)(160)(147)(485)(10,293)
Adjusted noninterest income (non-GAAP)i$474 $479 $468 $1,431 $1,239 
Noninterest expense (GAAP)j$1,456 $1,386 $1,416 $4,218 $3,843 
Impact of notable items, before income tax(227)(218)(284)(667)(832)
Adjusted noninterest expense (non-GAAP)k$1,229 $1,168 $1,132 $3,551 $3,011 
Provision for credit losses
Provision for credit losses$117 $95 $192 $276 $1,126 
Less: day 2 provision for loan and lease losses and off-balance sheet exposure— — — — 716 
Less: provision (benefit) for credit losses on investment securities available for sale— — (3)— — 
Adjusted provision for credit losses (non-GAAP)$117 $95 $195 $276 $410 
PPNR
Net income (GAAP)a$639 $707 $752 $2,077 $10,952 
Plus:
Provision for credit losses117 95 192 276 1,126 
Income tax expense234 272 245 779 412 
PPNR (non-GAAP)l$990 $1,074 $1,189 $3,132 $12,490 
Impact of notable items (1)
51 58 137 182 (9,461)
Adjusted PPNR (non-GAAP)m$1,041 $1,132 $1,326 $3,314 $3,029 
(1) Excludes the notable items for the provision for credit losses and income taxes as these items are excluded from PPNR as presented in the table above.
Note: Certain items above do not precisely recalculate as presented due to rounding.


Dollars in millions
Three Months EndedNine Months Ended
Non-GAAP Reconciliations (continued) September 30, 2024June 30, 2024September 30, 2023September 30, 2024September 30, 2023
ROA
Net income (GAAP)a$639 $707 $752 $2,077 $10,952 
Annualized net incomen = a annualized2,544 2,842 2,983 2,775 14,642 
Adjusted net income (non-GAAP)d675 755 828 2,214 1,914 
Annualized adjusted net incomep = d annualized2,684 3,036 3,286 2,958 2,560 
Average assetso220,466 218,891 211,994 218,487 187,429 
ROAn/o1.15 %1.30 %1.41 %1.27 %7.81 %
Adjusted ROA (non-GAAP)p/o1.22 1.39 1.55 1.35 1.37 
PPNR ROA
PPNR (non-GAAP)l$990 $1,074 $1,189 $3,132 $12,490 
Annualized PPNRq = l annualized3,942 4,316 4,717 4,184 16,699 
Adjusted PPNR (non-GAAP)m1,041 1,132 1,326 3,314 3,029 
Annualized adjusted PPNRr = m annualized4,141 4,552 5,261 4,427 4,049 
PPNR ROA (non-GAAP)q/o1.79 %1.97 %2.23 %1.91 %8.91 %
Adjusted PPNR ROA (non-GAAP)r/o1.88 2.08 2.48 2.03 2.16 
ROE and ROTCE
Annualized net income available to common stockholderss = b annualized$2,483 $2,779 $2,923 $2,713 $14,583 
Annualized adjusted net income available to common stockholderst = e annualized$2,623 $2,974 $3,225 $2,896 $2,501 
Average stockholders' equity (GAAP)$22,851 $22,052 $20,116 $22,197 $17,002 
Less: average preferred stock881 881 881 881 881 
Average common stockholders' equityu$21,970 $21,171 $19,235 $21,316 $16,121 
Less: average goodwill346 346 346 346 346 
Less: average other intangible assets275 288 338 290 290 
Average tangible common equity (non-GAAP)v$21,349 $20,537 $18,551 $20,680 $15,485 
ROEs/u11.30 %13.13 %15.20 %12.73 %90.46 %
Adjusted ROE (non-GAAP)t/u11.94 14.05 16.77 13.59 15.51 
ROTCE (non-GAAP)s/v11.63 13.53 15.76 13.12 94.17 
Adjusted ROTCE (non-GAAP)t/v12.29 14.48 17.39 14.00 16.15 
Tangible common equity to tangible assets at period end
Stockholders' equity (GAAP)w$22,828 $22,487 $20,389 
Less: preferred stock881 881 881 
Common equityx$21,947 $21,606 $19,508 
Less: goodwill346 346 346 
Less: other intangible assets265 280 329 
Tangible common equity (non-GAAP)y$21,336 $20,980 $18,833 
Total assets (GAAP)z220,567 219,827 213,765 
Tangible assets (non-GAAP)aa219,956 219,201 213,090 
Total equity to total assets (GAAP)w/z10.35 %10.23 %9.54 %
Tangible common equity to tangible assets (non-GAAP)y/aa9.70 9.57 8.84 
Note: Certain items above do not precisely recalculate as presented due to rounding.


Dollars in millions, except share and per share data
Three Months EndedNine Months Ended
Non-GAAP Reconciliations (continued) September 30, 2024June 30, 2024September 30, 2023September 30, 2024September 30, 2023
Book value and tangible book value per common share at period end
Common shares outstanding at period endbb14,179,208 14,529,735 14,520,103 
Book value per sharex/bb$1,547.81 $1,487.00 $1,343.52 
Tangible book value per common share (non-GAAP)y/bb1,504.75 1,443.92 1,297.00 
Efficiency ratio
Net interest incomecc$1,796 $1,821 $1,990 $5,434 $4,801 
Efficiency ratio (GAAP)j / (h + cc)59.49 %56.36 %54.34 %57.38 %23.53 %
Adjusted efficiency ratio (non-GAAP)k / (i + cc)54.15 50.77 46.04 51.72 %49.85 %
Rental income on operating lease equipment
Rental income on operating lease equipment (GAAP)$262 $259 $248 $776 $719 
Less: depreciation on operating lease equipment99 98 95 293 275 
Less: maintenance and other operating lease expenses59 60 51 164 163 
Adjusted rental income on operating lease equipment (non-GAAP)$104 $101 $102 $319 $281 
Net interest income & Net interest margin
Net interest income (GAAP)cc$1,796 $1,821 $1,990 $5,434 $4,801 
Loan PAA incomedd107 145 275 415 535 
Other PAA (expense) incomeee(6)(5)(6)(16)11 
Total PAAff = (dd + ee)$101 $140 $269 $399 $546 
Net interest income, excluding PAA (non-GAAP)gg = (cc - ff)$1,695 $1,681 $1,721 $5,035 $4,255 
Annualized net interest income (GAAP)hh = cc annualized$7,147 $7,322 $7,894 $7,259 $6,418 
Annualized net interest income, excluding PAA (non-GAAP)ii = ee annualized6,746 6,760 6,829 6,726 5,689 
Average interest-earning assetsjj202,199 200,705 193,720 200,503 162,183 
NIM (GAAP)hh/jj3.53 %3.64 %4.07 %3.62 %3.95 %
NIM, excluding PAA (non-GAAP)ii/jj3.33 3.36 3.52 3.35 3.50 
Note: Certain items above do not precisely recalculate as presented due to rounding.