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Business Segment Financial Review

The Company’s major business segments are Wealth, Corporate, Commercial and Institutional Banking, Consumer and Business Banking, Payment Services, and Treasury and Corporate Support.

Basis for Financial Presentation Business segment results are derived from the Company’s business unit profitability reporting systems by specifically attributing managed balance sheet assets, deposits and other liabilities and their related income or expense. Refer to Note 16 of the Notes to Consolidated Financial Statements for further information on the business segments’ basis for financial presentation.

Designations, assignments and allocations change from time to time as management systems are enhanced, methods of evaluating performance or product lines change or business segments are realigned to better respond to the Company’s diverse customer base. During 2025 and 2024, certain organization and methodology changes were made, including revising the Company’s business segment funds transfer-pricing methodology related to deposits and loans during the second quarter of 2024. Prior period results were restated and presented on a comparable basis.

Wealth, Corporate, Commercial and Institutional Banking Wealth, Corporate, Commercial and Institutional Banking provides core banking, specialized lending, transaction and payment processing, capital markets, asset management, and brokerage and investment related services to wealth, middle

market, large corporate, commercial real estate, government and institutional clients. Wealth, Corporate, Commercial and Institutional Banking contributed $1.2 billion of the Company’s net income in the first quarter of 2025, or an increase of $45 million (4.0 percent) compared with the first quarter of 2024.

Net revenue decreased $112 million (3.7 percent) in the first quarter of 2025, compared with the first quarter of 2024. Net interest income, on a taxable-equivalent basis, decreased $167 million (8.7 percent) in the first quarter of 2025, compared with the first quarter of 2024, primarily due to the impact of deposit mix. Noninterest income increased $55 million (4.9 percent) in the first quarter of 2025, compared with the first quarter of 2024, primarily due to business growth and favorable market conditions across most categories.

Noninterest expense decreased $42 million (3.0 percent) in the first quarter of 2025, compared with the first quarter of 2024, primarily due to lower compensation and employee benefits expense. The provision for credit losses decreased $131 million (92.9 percent) in the first quarter of 2025, compared with the first quarter of 2024, primarily due to improved credit quality and portfolio mix.

Consumer and Business Banking Consumer and Business Banking comprises consumer banking, small business banking and consumer lending. Products and services are delivered through banking offices, telephone servicing and sales, online services, direct mail, ATMs, mobile devices, distributed mortgage loan officers, and intermediary relationships including auto dealerships, mortgage banks, and strategic business partners. Consumer and Business Banking contributed $398 million of the Company’s net income in the first quarter of 2025, or a decrease of $71 million (15.1 percent) compared with the first quarter of 2024.

Net revenue decreased $137 million (5.9 percent) in the first quarter of 2025, compared with the first quarter of 2024. Net interest income, on a taxable-equivalent basis, decreased $120 million (6.4 percent) in the first quarter of 2025, compared with the first quarter of 2024, due to the impact of deposit mix. Noninterest income decreased $17 million (4.0 percent) in the first quarter of 2025, compared with the first quarter of 2024, primarily due to lower service charges, partially offset by higher mortgage banking revenue.

Noninterest expense decreased $50 million (3.1 percent) in the first quarter of 2025, compared with the first quarter of 2024, primarily due to lower compensation and employee benefits expense. The provision for credit losses increased $8 million (14.8 percent) in the first quarter of 2025, compared with the first quarter of 2024, primarily due to higher net charge-offs.

Payment Services Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate, government and purchasing card services and merchant processing. Payment Services contributed $340 million of the Company’s net income in the first quarter of 2025, or an increase of $104 million (44.1 percent) compared with the first quarter of 2024.

Net revenue increased $97 million (5.8 percent) in the first quarter of 2025, compared with the first quarter of 2024. Net interest income, on a taxable-equivalent basis, increased $40 million (5.7 percent) in the first quarter of 2025, compared with

the first quarter of 2024, primarily due to higher loan balances and lower funding costs, partially offset by lower loan spreads. Noninterest income increased $57 million (5.8 percent) in the first quarter of 2025, compared with the first quarter of 2024, driven by business volume growth across all fee categories.

Noninterest expense increased $1 million (0.1 percent) in the first quarter of 2025, compared with the first quarter of 2024. The provision for credit losses decreased $42 million (11.7 percent) in the first quarter of 2025, compared with the first quarter of 2024, primarily due to improved portfolio mix and stabilizing credit quality.

Treasury and Corporate Support Treasury and Corporate Support includes the Company’s investment portfolios, funding, capital management, interest rate risk management, income taxes not allocated to the business segments, including most investments in tax-advantaged projects, and the residual aggregate of those expenses associated with corporate activities that are managed on a consolidated basis. Treasury and Corporate Support recorded a net loss of $200 million in the first quarter of 2025, compared with a net loss of $512 million in the first quarter of 2024.

Net revenue increased $395 million in the first quarter of 2025, compared with the first quarter of 2024. Net interest income, on a taxable-equivalent basis, increased $354 million (74.4 percent) in the first quarter of 2025, compared with the first quarter of 2024, primarily due to lower funding costs as well as benefits from the mix of earning assets and fixed asset repricing. Noninterest income increased $41 million (22.2 percent) in the first quarter of 2025, compared with the first quarter of 2024, primarily due to higher capital markets revenue, higher tax credit investment activity and the impact of other favorable items in other noninterest income.

Noninterest expense decreased $136 million (30.3 percent) in the first quarter of 2025, compared with the first quarter of 2024, primarily due to the impacts of merger and integration charges and FDIC special assessment charges in the prior year, partially offset by higher marketing and business development expense, higher technology and communications expense and higher other noninterest expense. The provision for credit losses increased $149 million in the first quarter of 2025, compared with the first quarter of 2024, primarily due to the impact of deteriorating economic conditions and increased economic uncertainty.

Income taxes are assessed to each business segment at a managerial tax rate of 25.0 percent with the residual tax expense or benefit to arrive at the consolidated effective tax rate included in Treasury and Corporate Support.

Non-GAAP Financial Measures

In addition to capital ratios defined by banking regulators, the Company considers various other measures when evaluating capital utilization and adequacy, including:

•Tangible common equity to tangible assets,

•Tangible common equity to risk-weighted assets,

•Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the CECL methodology, and

•Return on tangible common equity.

These capital measures are viewed by management as useful additional methods of evaluating the Company’s utilization of its capital held and the level of capital available to withstand unexpected negative market or economic conditions. Additionally, presentation of these measures allows investors, analysts and banking regulators to assess the Company’s capital position and use of capital relative to other financial services companies. These capital measures are not defined in generally accepted accounting principles (“GAAP”), or in banking regulations or were not effective for certain periods. In addition, certain capital measures related to prior periods are presented on the same basis as those in the current period. The effective capital ratios defined by banking

regulations for these periods were subject to certain transitional provisions for the implementation of accounting guidance related to impairment of financial instruments based on the CECL methodology. As a result, these capital measures disclosed by the Company may be considered non-GAAP financial measures. Management believes this information helps investors assess trends in the Company’s capital utilization and adequacy.

The Company also discloses net interest income and related ratios and analysis on a taxable-equivalent basis, which may also be considered non-GAAP financial measures. The Company believes this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net interest income arising from taxable and tax-exempt sources. In addition, certain performance measures utilize net interest income on a taxable-equivalent basis, including the efficiency ratio and net interest margin.

There may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider the consolidated financial statements and other financial information contained in this report in their entirety, and not to rely on any single financial measure.

The following tables show the Company’s calculation of these non-GAAP financial measures:

(a)Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements.

(b)Includes the estimated increase in the allowance for credit losses related to the adoption of the CECL methodology net of deferred taxes.

(c)Includes the impact of the estimated increase in the allowance for credit losses related to the adoption of the CECL methodology.

(a)Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes.

(a)Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements.

Critical Accounting Policies

The accounting and reporting policies of the Company comply with accounting principles generally accepted in the United States and conform to general practices within the banking industry. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. The Company’s financial position and results of operations can be affected by these estimates and assumptions, which are integral to understanding the Company’s financial statements. Critical accounting policies are those policies management believes are the most important to the portrayal of the Company’s financial condition and results, and require management to make estimates that are difficult, subjective or complex. Most accounting policies are not considered by management to be critical accounting policies. Management has discussed the development and the selection of critical accounting policies with the Company’s Audit Committee. Those policies considered to be critical accounting policies relate to the allowance for credit losses, fair value estimates, MSRs, and income taxes. These accounting policies are discussed in detail in “Management’s Discussion and Analysis — Critical Accounting Policies” and the Notes to Consolidated Financial Statements in the

Company’s Annual Report on Form 10-K for the year ended December 31, 2024.