EX-99.3 4 ex_993financialsupplement-.htm EX-99.3 Document

Dollars in millions, except per share data
Three Months EndedYear Ended December 31,
Summary Financial Data & Key MetricsDecember 31, 2024September 30, 2024December 31, 202320242023
Results of Operations:
Net interest income$1,709 $1,796 $1,911 $7,143 $6,712 
Provision for credit losses155 117 249 431 1,375 
Net interest income after provision for credit losses1,554 1,679 1,662 6,712 5,337 
Noninterest income699 650 543 2,615 12,075 
Noninterest expense1,517 1,456 1,492 5,735 5,335 
Income before income taxes736 873 713 3,592 12,077 
Income tax expense36 234 199 815 611 
Net income700 639 514 2,777 11,466 
Preferred stock dividends15 15 15 61 59 
Net income available to common stockholders$685 $624 $499 $2,716 $11,407 
Adjusted net income available to common stockholders(1)
$628 $660 $678 $2,796 $2,548 
Pre-tax, pre-provision net revenue (PPNR)(1)
$891 $990 $962 $4,023 $13,452 
Per Share Information:
Diluted earnings per common share (EPS)$49.21 $43.42 $34.33 $189.41 $784.51 
Adjusted diluted EPS(1)
45.10 45.87 46.58 194.96 175.22 
Book value per common share at period end1,556.16 1,547.81 1,403.12 
Tangible book value per common share (TBV)(1) at period end
1,512.77 1,504.75 1,357.77 
Key Performance Metrics:
Return on average assets (ROA)1.25  %1.15  %0.95  %1.26  %5.90  %
Adjusted ROA(1)
1.14 1.22 1.28 1.30 1.34 
PPNR ROA(1)
1.58 1.79 1.78 1.83 6.92 
Adjusted PPNR ROA(1)
1.70 1.88 2.27 1.94 2.19 
Return on average common equity (ROE)12.56 11.30 9.97 12.68 66.88 
Adjusted ROE(1)
11.51 11.94 13.53 13.06 14.94 
Return on average tangible common equity (ROTCE)(1)
12.92 11.63 10.32 13.07 69.50 
Adjusted ROTCE(1)
11.84 12.29 14.00 13.45 15.52 
Efficiency ratio63.01 59.49 60.80 58.77 28.40 
Adjusted efficiency ratio(1)
56.98 54.15 48.00 53.01 49.33 
Net interest margin (NIM)(2)
3.32 3.53 3.86 3.54 3.92 
NIM, excluding purchase accounting accretion (PAA)(1), (2)
3.16 3.33 3.47 3.30 3.50 
Select Balance Sheet Items at Period End:
Total investment securities$44,090 $38,663 $29,999 
Total loans and leases140,221 138,695 133,302 
Total operating lease equipment, net9,323 9,186 8,746 
Total deposits155,229 151,574 145,854 
Total borrowings37,051 37,161 37,654 
Loan to deposit ratio90.33  %91.50  %91.39  %
Noninterest-bearing deposits to total deposits24.89 25.99 27.29 
Capital Ratios at Period End: (3)
Total risk-based capital ratio15.04  %15.36  %15.75  %
Tier 1 risk-based capital ratio13.53 13.78 13.94 
Common equity Tier 1 ratio12.99 13.24 13.36 
Tier 1 leverage capital ratio9.90 10.17 9.83 
Asset Quality at Period End:
Nonaccrual loans to total loans and leases0.84  %0.90  %0.73  %
Allowance for loan and lease losses (ALLL) to loans and leases1.20 1.21 1.31 
Net charge-off ratio for the period0.46 0.42 0.53 0.39 0.47 
(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.
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Dollars in millions, except share and per share data
Three Months EndedYear Ended December 31,
Income Statement (unaudited) December 31, 2024September 30, 2024December 31, 202320242023
Interest income
Interest and fees on loans$2,322 $2,430 $2,391 $9,528 $8,187 
Interest on investment securities377 358 241 1,347 648 
Interest on deposits at banks302 350 485 1,478 1,556 
Total interest income3,001 3,138 3,117 12,353 10,391 
Interest expense
Deposits957 1,004 865 3,864 2,497 
Borrowings335 338 341 1,346 1,182 
Total interest expense1,292 1,342 1,206 5,210 3,679 
Net interest income1,709 1,796 1,911 7,143 6,712 
Provision for credit losses155 117 249 431 1,375 
Net interest income after provision for credit losses1,554 1,679 1,662 6,712 5,337 
Noninterest income
Rental income on operating lease equipment272 262 252 1,048 971 
Lending-related fees68 67 67 257 218 
Deposit fees and service charges58 57 55 230 200 
Client investment fees54 55 51 213 157 
Wealth management services54 54 48 211 188 
International fees33 29 29 119 91 
Factoring commissions20 19 22 75 82 
Cardholder services, net41 42 36 163 139 
Merchant services, net13 12 12 49 48 
Insurance commissions13 14 14 55 54 
Realized gain (loss) on sale of investment securities, net— (26)
Fair value adjustment on marketable equity securities, net10 13 (11)
Gain on sale of leasing equipment, net11 30 20 
Gain on acquisition— — (83)— 9,808 
Loss on extinguishment of debt— — — (2)— 
Other noninterest income 50 21 29 148 136 
Total noninterest income699 650 543 2,615 12,075 
Noninterest expense
Depreciation on operating lease equipment101 99 96 394 371 
Maintenance and other operating lease expenses55 59 59 219 222 
Personnel cost801 788 714 3,078 2,636 
Net occupancy expense60 62 65 242 244 
Equipment expense136 128 114 504 422 
Professional fees30 42 28 121 71 
Third-party processing fees57 55 66 230 205 
FDIC insurance expense33 31 82 138 158 
Marketing expense24 20 24 76 102 
Acquisition-related expenses62 46 116 210 470 
Intangible asset amortization16 15 17 63 57 
Other noninterest expense142 111 111 460 377 
Total noninterest expense1,517 1,456 1,492 5,735 5,335 
Income before income taxes736 873 713 3,592 12,077 
Income tax expense36 234 199 815 611 
Net income$700 $639 $514 $2,777 $11,466 
Preferred stock dividends15 15 15 61 59 
Net income available to common stockholders$685 $624 $499 $2,716 $11,407 
Basic earnings per common share$49.21 $43.42 $34.36 $189.42 $785.14 
Diluted earnings per common share $49.21 $43.42 $34.33 $189.41 $784.51 
Weighted average common shares outstanding (basic) 13,927,88714,375,97414,528,44714,341,87214,527,902
Weighted average common shares outstanding (diluted) 13,927,88714,375,97414,539,83814,342,65514,539,613

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Dollars in millions, except share data
Balance Sheet (unaudited) December 31, 2024September 30, 2024December 31, 2023
Assets
Cash and due from banks$814 $862 $908 
Interest-earning deposits at banks21,364 25,640 33,609 
Securities purchased under agreements to resell158 455 473 
Investment in marketable equity securities101 82 84 
Investment securities available for sale33,750 28,190 19,936 
Investment securities held to maturity10,239 10,391 9,979 
Assets held for sale85 68 76 
Loans and leases140,221 138,695 133,302 
Allowance for loan and lease losses(1,676)(1,678)(1,747)
Loans and leases, net of allowance for loan and lease losses138,545 137,017 131,555 
Operating lease equipment, net9,323 9,186 8,746 
Premises and equipment, net2,006 1,974 1,877 
Goodwill346 346 346 
Other intangible assets, net249 265 312 
Other assets6,740 6,091 5,857 
Total assets$223,720 $220,567 $213,758 
Liabilities
Deposits:
Noninterest-bearing$38,633 $39,396 $39,799 
Interest-bearing116,596 112,178 106,055 
Total deposits155,229 151,574 145,854 
Credit balances of factoring clients1,016 1,250 1,089 
Borrowings:
Short-term borrowings367 391 485 
Long-term borrowings36,684 36,770 37,169 
Total borrowings37,051 37,161 37,654 
Other liabilities8,196 7,754 7,906 
Total liabilities$201,492 $197,739 $192,503 
Stockholders’ equity
Preferred stock881881 881 
Common stock:
Class A - $1 par value13 13 14
Class B - $1 par value
Additional paid in capital2,417 3,389 4,108 
Retained earnings19,361 18,703 16,742 
Accumulated other comprehensive loss(445)(159)(491)
Total stockholders’ equity22,228 22,828 21,255 
Total liabilities and stockholders’ equity$223,720 $220,567 $213,758 

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Dollars in millions, except share per share data
Notable Items (1)
Three Months EndedYear Ended December 31,
December 31, 2024September 30, 2024December 31, 202320242023
Noninterest income
Rental income on operating lease equipment (2) (7)
$(152)$(158)$(155)$(609)$(593)
Realized (gain) loss on sale of investment securities, net(2)(4)— (6)26 
Fair value adjustment on marketable equity securities, net(10)(9)(9)(13)11 
Gain on sale of leasing equipment, net(11)(5)(2)(30)(20)
Gain on acquisition— — 83 — (9,808)
Loss on extinguishment of debt— — — — 
Other noninterest income (3)
(8)— (5)(12)
Impact of notable items on adjusted noninterest income$(183)$(176)$(88)$(668)$(10,381)
Noninterest expense
Depreciation on operating lease equipment (2) (7)
(101)(99)(96)(394)(371)
Maintenance and other operating lease equipment expense (2)
(55)(59)(59)(219)(222)
Professional fees (4)
— — (5)(4)(5)
FDIC insurance special assessment— — (64)(11)(64)
Acquisition-related expenses(62)(46)(116)(210)(470)
Intangible asset amortization(16)(15)(17)(63)(57)
Other noninterest expense (5)
(15)(8)— (15)— 
Impact of notable items on adjusted noninterest expense$(249)$(227)$(357)$(916)$(1,189)
Day 2 provisions for loan and lease losses and off-balance sheet credit exposure$— $— $— $— $(716)
Impact of notable items on adjusted provision for credit losses$— $— $— $— $(716)
Impact of notable items on adjusted pre-tax income$66 $51 $269 $248 $(8,476)
Income tax impact (6)
12315 90 168 383 
Impact of notable items on adjusted net income$(57)$36 $179 $80 $(8,859)
Impact of notable items on adjusted diluted EPS$(4.11)$2.45 $12.25 $5.55 $(609.29)
(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 sale of portfolio residential mortgages in 4Q24 as well as a gain on litigation settlement for YTD 2024. 4Q23 includes a gain on sale of insurance accounts as well as a Silicon Valley Bridge Bank, N.A. (“SVBB”) purchase accounting adjustment related to FX translation for YTD 2023.
(4) Professional fees include expenses related to integration activities.
(5) Other noninterest expense primarily includes the impairment of software and related projects in 4Q24 and a technology fee in 3Q24, as well as litigation reserve releases for YTD 2024.
(6) For the periods presented, the income tax impact may include tax discrete items and changes in the estimated annualized effective tax rate. 4Q24 and YTD 2024 includes the impact of a change in our estimated state income tax rates after filing our first income tax returns that included the SVBB Acquisition.
(7) Depreciation on operating lease equipment includes impairment of $4 million in 4Q24. The $4 million impairment is a notable item and is excluded from adjusted rental income on operating lease equipment (non-GAAP).



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Dollars in millions, except share and per share data
Condensed Income Statements (unaudited) - Adjusted for Notable Items (1)
Three Months EndedYear Ended December 31,
December 31, 2024September 30, 2024December 31, 202320242023
Interest income$3,001 $3,138 $3,117 $12,353 $10,391 
Interest expense1,292 1,342 1,206 5,210 3,679 
Net interest income1,709 1,796 1,911 7,143 6,712 
Provision for credit losses155 117 249 431 659 
Net interest income after provision for credit losses1,554 1,679 1,662 6,712 6,053 
Noninterest income516 474 455 1,947 1,694 
Noninterest expense1,268 1,229 1,135 4,819 4,146 
Income before income taxes802 924 982 3,840 3,601 
Income tax expense159 249 289 983 994 
Net income$643 $675 $693 $2,857 $2,607 
Preferred stock dividends15 15 15 61 59 
Net income available to common stockholders$628 $660 $678 $2,796 $2,548 
Basic earnings per common share $45.10 $45.87 $46.62 $194.97 $175.37 
Diluted earnings per common share45.10 45.87 46.58 194.96175.22
Weighted average common shares outstanding (basic)13,927,88714,375,97414,528,44714,341,87214,527,902
Weighted average common shares outstanding (diluted)13,927,88714,375,97414,539,83814,342,65514,539,613
(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.

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Dollars in millions
Loans and Leases by Class (end of period)December 31, 2024September 30, 2024December 31, 2023
Commercial
Commercial construction$5,109 $4,924 $3,918 
Owner occupied commercial mortgages16,842 16,372 15,471 
Non-owner occupied commercial mortgages16,194 16,078 14,995 
Commercial and industrial31,640 30,867 29,794 
Leases2,014 2,020 2,054 
Total commercial$71,799 $70,261 $66,232 
Consumer
Residential mortgage$23,152 $23,237 $22,776 
Revolving mortgage2,567 2,455 2,165 
Consumer auto1,523 1,543 1,442 
Consumer other986 1,347 1,176 
Total consumer$28,228 $28,582 $27,559 
SVB
Global fund banking$27,904 $27,114 $25,553 
Investor dependent - early stage997 1,128 1,403 
Investor dependent - growth stage2,196 2,434 2,897 
Innovation C&I and cash flow dependent9,097 9,176 9,658 
Total SVB$40,194 $39,852 $39,511 
Total loans and leases$140,221 $138,695 $133,302 
Less: allowance for loan and lease losses(1,676)(1,678)(1,747)
Total loans and leases, net of allowance for loan and lease losses$138,545 $137,017 $131,555 
Deposits by Type (end of period)December 31, 2024September 30, 2024December 31, 2023
Noninterest-bearing demand$38,633 $39,396 $39,799 
Checking with interest25,343 23,216 23,754 
Money market35,722 34,574 30,625 
Savings42,278 40,259 35,244 
Time13,253 14,129 16,432 
Total deposits$155,229 $151,574 $145,854 

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Dollars in millions
Three Months EndedYear Ended December 31,
Credit Quality and Allowance for Loan and Lease Losses (ALLL)December 31, 2024September 30, 2024December 31, 202320242023
Nonaccrual loans at period end$1,184 $1,244 $969 
Ratio of nonaccrual loans to total loans at period end0.84 %0.90 %0.73 %
Charge-offs$(193)$(177)$(201)$(657)$(638)
Recoveries33 32 24 117 78 
Net charge-offs$(160)$(145)$(177)$(540)$(560)
Net charge-off ratio0.46 %0.42 %0.53 %0.39 %0.47 %
ALLL to loans ratio at period end1.20 %1.21 %1.31 %
ALLL at beginning of period$1,678 $1,700 $1,673 $1,747 $922 
Initial PCD ALLL— — — — 220 
Day 2 provision for loan and lease losses— — — — 462 
Provision for loan and lease losses158 123 251 469 703 
Net charge-offs(160)(145)(177)(540)(560)
ALLL at end of period$1,676 $1,678 $1,747 $1,676 $1,747 

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Dollars in millionsThree Months Ended
Average Balance Sheets, Yields and RatesDecember 31, 2024September 30, 2024December 31, 2023
Average BalanceIncome/ExpenseYield/RateAverage BalanceIncome/ExpenseYield/RateAverage BalanceIncome/ExpenseYield/Rate
Loans and leases (1)(2)
$138,186 $2,322 6.69 %$137,602 $2,430 7.03 %$131,594 $2,391 7.21 %
Investment securities40,779 374 3.66 38,189 354 3.70 28,722 239 3.30 
Securities purchased under agreements to resell266 4.67 241 5.34 225 5.36 
Interest-earning deposits at banks25,548 302 4.70 26,167 350 5.33 35,712 485 5.39 
Total interest-earning assets (2)
$204,779 $3,001 5.83 %$202,199 $3,138 6.18 %$196,253 $3,117 6.30 %
Operating lease equipment, net$9,288 $9,028 $8,715 
Cash and due from banks756 717 846 
Allowance for loan and lease losses(1,710)(1,725)(1,717)
All other noninterest-earning assets10,593 10,247 10,515 
Total assets$223,706 $220,466 $214,612 
Interest-bearing deposits
Checking with interest$24,460 $125 2.04 %$23,946 $134 2.23 %$23,820 $128 2.14 %
Money market35,319 271 3.05 34,132 278 3.24 30,188 211 2.77 
Savings41,103 421 4.07 39,939 436 4.34 34,151 362 4.20 
Time deposits13,683 140 4.07 14,429 156 4.29 16,558 164 3.94 
Total interest-bearing deposits114,565 957 3.32 112,446 1,004 3.55 104,717 865 3.28 
Borrowings:
Securities sold under customer repurchase agreements370 0.57 384 — 0.55 455 0.44 
Senior unsecured borrowings59 4.44 361 2.59 377 2.46 
Subordinated debt845 2.75 900 3.34 1,038 10 3.82 
Other borrowings35,818 327 3.66 35,803 328 3.66 35,845 327 3.65 
Long-term borrowings36,722 334 3.64 37,064 338 3.64 37,260 340 3.65 
Total borrowings37,092 335 3.61 37,448 338 3.61 37,715 341 3.61 
Total interest-bearing liabilities$151,657 $1,292 3.39 %$149,894 $1,342 3.57 %$142,432 $1,206 3.37 %
Noninterest-bearing deposits$39,969 $39,026 $41,599 
Credit balances of factoring clients1,232 1,195 1,275 
Other noninterest-bearing liabilities8,250 7,500 8,566 
Stockholders' equity22,598 22,851 20,740 
Total liabilities and stockholders’ equity$223,706 $220,466 $214,612 
Net interest income$1,709 $1,796 $1,911 
Net interest spread (2)
2.44 %2.61 %2.93 %
Net interest margin (2)
3.32 %3.53 %3.86 %
(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.


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Dollars in millionsTwelve Months Ended
Average Balance Sheets, Yields and RatesDecember 31, 2024December 31, 2023
Average BalanceIncome/ExpenseYield/RateAverage BalanceIncome/ExpenseYield/Rate
Loans and leases (1)(2)
$136,026 $9,528 7.00 %$117,708 $8,187 6.95 %
Investment securities37,029 1,334 3.60 23,112 640 2.77 
Securities purchased under agreements to resell247 13 5.18 161 5.20 
Interest-earning deposits at banks28,276 1,478 5.23 29,790 1,556 5.22 
Total interest-earning assets (2)
$201,578 $12,353 6.12 %$170,771 $10,391 6.08 %
Operating lease equipment, net$9,003 $8,495 
Cash and due from banks753 879 
Allowance for loan and lease losses(1,748)(1,495)
All other noninterest-earning assets10,214 15,631 
Total assets$219,800 $194,281 
Interest-bearing deposits
Checking with interest$24,199 $526 2.17 %$22,296 $402 1.80 %
Money market33,107 1,031 3.11 27,583 618 2.24 
Savings38,997 1,663 4.26 26,104 963 3.69 
Time deposits15,202 644 4.23 14,947 514 3.44 
Total interest-bearing deposits111,505 3,864 3.47 90,930 2,497 2.75 
Borrowings:
Securities sold under customer repurchase agreements392 0.51 455 0.35 
Short-term FHLB borrowings— — — 108 4.79 
Short-term borrowings392 0.51 563 1.20 
Federal Home Loan Bank borrowings— — — 2,307 120 5.22 
Senior unsecured borrowings292 2.63 608 14 2.21 
Subordinated debt889 29 3.18 1,043 39 3.65 
Other borrowings35,826 1,307 3.65 27,322 1,002 3.67 
Long-term borrowings37,007 1,344 3.63 31,280 1,175 3.75 
Total borrowings37,399 1,346 3.60 31,843 1,182 3.71 
Total interest-bearing liabilities$148,904 $5,210 3.50 %$122,773 $3,679 3.00 %
Noninterest-bearing deposits$39,499 $39,660 
Credit balances of factoring clients1,192 1,166 
Other noninterest-bearing liabilities7,908 12,745 
Stockholders' equity22,297 17,937 
Total liabilities and stockholders’ equity$219,800 $194,281 
Net interest income$7,143 $6,712 
Net interest spread (2)
2.62 %3.08 %
Net interest margin (2)
3.54 %3.92 %
(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.
9



Dollars in millions, except share and per share data
Three Months EndedYear Ended December 31,
Non-GAAP ReconciliationsDecember 31, 2024September 30, 2024December 31, 202320242023
Net income and EPS
Net income (GAAP)a$700 $639 $514 $2,777 $11,466 
Preferred stock dividends15 15 15 61 59 
Net income available to common stockholders (GAAP)b$685 $624 $499 $2,716 $11,407 
Total notable items, after income taxc(57)36 179 80 (8,859)
Adjusted net income (non-GAAP)d = (a+c)643 675 693 2,857 2,607 
Adjusted net income available to common stockholders (non-GAAP)e = (b+c)$628 $660 $678 $2,796 $2,548 
Weighted average common shares outstanding
Basicf13,927,887 14,375,974 14,528,447 14,341,872 14,527,902 
Dilutedg13,927,887 14,375,974 14,539,838 14,342,655 14,539,613 
EPS (GAAP)
Basicb/f$49.21 $43.42 $34.36 $189.42 $785.14 
Dilutedb/g49.21 43.42 34.33 189.41 784.51 
Adjusted EPS (non-GAAP)
Basice/f$45.10 $45.87 $46.62 $194.97 $175.37 
Dilutede/g45.10 45.87 46.58 194.96 175.22 
Noninterest income and expense
Noninterest income (GAAP)h$699 $650 $543 $2,615 $12,075 
Impact of notable items, before income tax(183)(176)(88)(668)(10,381)
Adjusted noninterest income (non-GAAP)i$516 $474 $455 $1,947 $1,694 
Noninterest expense (GAAP)j$1,517 $1,456 $1,492 $5,735 $5,335 
Impact of notable items, before income tax(249)(227)(357)(916)(1,189)
Adjusted noninterest expense (non-GAAP)k$1,268 $1,229 $1,135 $4,819 $4,146 
Provision for credit losses
Provision for credit losses (GAAP)$155 $117 $249 $431 $1,375 
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— — — — — 
Adjusted provision for credit losses (non-GAAP)$155 $117 $249 $431 $659 
PPNR
Net income (GAAP)a$700 $639 $514 $2,777 $11,466 
Plus:
Provision for credit losses155 117 249 431 1,375 
Income tax expense36 234 199 815 611 
PPNR (non-GAAP)l$891 $990 $962 $4,023 $13,452 
Impact of notable items (1)
66 51 269 248 (9,192)
Adjusted PPNR (non-GAAP)m$957 $1,041 $1,231 $4,271 $4,260 
(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.
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Dollars in millions
Three Months EndedYear Ended December 31,
Non-GAAP Reconciliations (continued) December 31, 2024September 30, 2024December 31, 202320242023
ROA
Net income (GAAP)a$700 $639 $514 $2,777 $11,466 
Annualized net incomen = a annualized2,786 2,544 2,041 2,777 11,466 
Adjusted net income (non-GAAP)d643 675 693 2,857 2,607 
Annualized adjusted net incomep = d annualized2,558 2,684 2,748 2,857 2,607 
Average assetso223,706 220,466 214,612 219,800 194,281 
ROAn/o1.25 %1.15 %0.95 %1.26 %5.90 %
Adjusted ROA (non-GAAP)p/o1.14 1.22 1.28 1.30 1.34 
PPNR ROA
PPNR (non-GAAP)l$891 $990 $962 $4,023 $13,452 
Annualized PPNRq = l annualized3,545 3,942 3,818 4,023 13,452 
Adjusted PPNR (non-GAAP)m957 1,041 1,231 4,271 4,260 
Annualized adjusted PPNRr = m annualized3,809 4,141 4,882 4,271 4,260 
PPNR ROA (non-GAAP)q/o1.58 %1.79 %1.78 %1.83 %6.92 %
Adjusted PPNR ROA (non-GAAP)r/o1.70 1.88 2.27 1.94 2.19 
ROE and ROTCE
Annualized net income available to common stockholderss = b annualized$2,727 $2,483 $1,980 $2,716 $11,407 
Annualized adjusted net income available to common stockholderst = e annualized$2,499 $2,623 $2,687 $2,796 $2,548 
Average stockholders' equity (GAAP)$22,598 $22,851 $20,740 $22,297 $17,937 
Less: average preferred stock881 881 881 881 881 
Average common stockholders' equityu$21,717 $21,970 $19,859 $21,416 $17,056 
Less: average goodwill346 346 346 346 346 
Less: average other intangible assets259 275 322 283 298 
Average tangible common equity (non-GAAP)v$21,112 $21,349 $19,191 $20,787 $16,412 
ROEs/u12.56 %11.30 %9.97 %12.68 %66.88 %
Adjusted ROE (non-GAAP)t/u11.51 11.94 13.53 13.06 14.94 
ROTCE (non-GAAP)s/v12.92 11.63 10.32 13.07 69.50 
Adjusted ROTCE (non-GAAP)t/v11.84 12.29 14.00 13.45 15.52 
Tangible common equity to tangible assets at period end
Stockholders' equity (GAAP)w$22,228 $22,828 $21,255 
Less: preferred stock881 881 881 
Common equityx$21,347 $21,947 $20,374 
Less: goodwill346 346 346 
Less: other intangible assets249 265 312 
Tangible common equity (non-GAAP)y$20,752 $21,336 $19,716 
Total assets (GAAP)z223,720 220,567 213,758 
Tangible assets (non-GAAP)aa223,125 219,956 213,100 
Total equity to total assets (GAAP)w/z9.94 %10.35 %9.94 %
Tangible common equity to tangible assets (non-GAAP)y/aa9.30 9.70 9.25 
Note: Certain items above do not precisely recalculate as presented due to rounding.
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Dollars in millions, except share and per share data
Three Months EndedYear Ended December 31,
Non-GAAP Reconciliations (continued) December 31, 2024September 30, 2024December 31, 202320242023
Book value and tangible book value per common share at period end
Common shares outstanding at period endbb13,717,621 14,179,208 14,520,118 
Book value per sharex/bb$1,556.16 $1,547.81 $1,403.12 
Tangible book value per common share (non-GAAP)y/bb1,512.77 1,504.75 1,357.77 
Efficiency ratio
Net interest incomecc$1,709 $1,796 $1,911 $7,143 $6,712 
Efficiency ratio (GAAP)j / (h + cc)63.01 %59.49 %60.80 %58.77 %28.40 %
Adjusted efficiency ratio (non-GAAP)k / (i + cc)56.98 54.15 48.00 53.01 %49.33 %
Rental income on operating lease equipment
Rental income on operating lease equipment (GAAP)$272 $262 $252 $1,048 $971 
Less: depreciation on operating lease equipment101 99 96 394 371 
Less: maintenance and other operating lease expenses55 59 59 219 222 
Plus: Depreciation on impaired operating lease equipment— — — 
Adjusted rental income on operating lease equipment (non-GAAP)$120 $104 $97 $439 $378 
Net interest income & Net interest margin
Net interest income (GAAP)cc$1,709 $1,796 $1,911 $7,143 $6,712 
Loan PAAdd90 107 198 505 733 
Other PAAee(8)(6)(4)(24)
PAAff = (dd + ee)$82 $101 $194 $481 $740 
Net interest income, excluding PAA (non-GAAP)gg = (cc - ff)$1,627 $1,695 $1,717 $6,662 $5,972 
Annualized net interest incomehh = cc annualized$6,798 $7,147 $7,584 $7,143 $6,712 
Annualized net interest income, excluding PAAii = gg annualized6,472 6,746 6,813 6,662 5,972 
Average interest-earning assetsjj204,779 202,199 196,253 201,578 170,771 
NIM (GAAP)hh/jj3.32 %3.53 %3.86 %3.54 %3.92 %
NIM, excluding PAA (non-GAAP)ii/jj3.16 3.33 3.47 3.30 3.50 
Interest income on loans (GAAP)$2,322 $2,430 $2,391 $9,528 $8,187 
Less: loan PAAdd90 107 198 505 733 
Interest income on loans, excluding loan PAA (non-GAAP)$2,232 $2,323 $2,193 $9,023 $7,454 
Income tax expense
Income tax expense$36 $234 $199 $815 $611 
Impact of notable items (1)
123 15 90 168 383 
Adjusted income tax expense (non-GAAP)$159 $249 $289 $983 $994 
Effective tax rate
Effective tax rate (GAAP)4.88 %26.76 %27.93 %22.67 %5.06 %
Impact of notable items (1)
15.01 %0.17 %1.54 %2.93 %22.54 %
Adjusted effective tax rate (non-GAAP)19.89 %26.93 %29.47 %25.60 %27.60 %
(1) 4Q24 and YTD 2024 includes the impact of a change in our estimated state income tax rates after filing our first income tax returns that included the SVBB Acquisition.
Note: Certain items above do not precisely recalculate as presented due to rounding.


12