CITIZENS FINANCIAL GROUP INC/RI
For the period ended Jun 30, 2026. Filed Aug 3, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 3, 2026
CFG$63.24-0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-04.
0000759944-26-000101
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsForward-Looking StatementsIntroductionExecutive SummaryConsolidated Statement of Operations AnalysisConsolidated Balance Sheet AnalysisBusiness SegmentsRisk ManagementCredit RiskMarket RiskLiquidity RiskOperational RiskCompliance RiskCapitalCritical Accounting EstimatesAccounting and Reporting DevelopmentsNon-GAAP Financial MeasuresCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-03.
0000759944-26-000148
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsForward-Looking StatementsIntroductionExecutive SummaryConsolidated Statement of Operations AnalysisConsolidated Balance Sheet AnalysisBusiness SegmentsRisk ManagementCredit RiskMarket RiskLiquidity RiskOperational RiskCompliance RiskCapitalCritical Accounting EstimatesAccounting and Reporting DevelopmentsNon-GAAP Financial MeasuresThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 265 previous paragraphs and 263 current paragraphs.
178 unchanged; 74 reworded; 10 added; 13 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 26 previous and 30 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
•ROTCE of 13.9% and 13.1% for the three and six months ended June 30, 2026, respectively, compared to 11.0% and 10.4% for the same periods in 2025.
Current report
On July 30, 2026, we issued $400 million, or 400,000 shares, of 6.750% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series J (the “Series J Preferred Stock”), par value of $25 per share with a liquidation preference of $1,000 per share. Holders of the Series J Preferred Stock will be entitled to receive dividend payments only when, as, and if declared by our Board of Directors. Any such dividends will be payable quarterly in arrears beginning on January 6, 2027.
Current report
We intend to use the net proceeds from the issuance of the Series J Preferred Stock to redeem some or all outstanding shares of our Series G Preferred Stock on the dividend payment date of October 6, 2026. Any remaining proceeds will be used for general corporate purposes. If we decide to redeem some or all of the Series G Preferred Stock, we will announce the redemption by press release or Form 8-K and an appropriate notice of redemption.
Current report
In June 2026, the FDIC issued a notice of proposed rulemaking to amend its regulations for determining risk-based deposit insurance assessments for IDIs. The proposal would decrease initial base deposit insurance assessment rate schedules by 1 basis point and provide a downward resolution readiness adjustment to assessment rates for large institutions, such as CBNA. The resolution readiness adjustment includes a 0.5 basis point adjustment for passing virtual data room testing and a 0.5 basis point adjustment for providing prescribed data access. We are currently evaluating the proposal to determine the benefit to the Company.
Current report
•Mortgage banking fees decreased primarily driven by lower MSR valuation results, net of hedge impact.
Current report
•Outside services increased primarily driven by costs to implement our Reimagine the Bank program, which leverages technology innovation to reshape how we serve customers and operate our business; and
Current report
Insured/secured deposit balances continue to be broadly stable as of June 30, 2026 compared to December 31, 2025. The decrease in the insured/secured deposits percentage during 2026 reflects growth in the Private Bank and a decrease in insured Treasury brokered deposits as we continued to optimize our deposit mix.
Current report
Net charge-offs decreased $9 million and $24 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, driven by other retail during the three-month period, and other retail and education during the six-month period.
Removed paragraphs (13)
Previous report
•ROTCE of 12.2% for the three months ended March 31, 2026 compared to 9.6% for the same period in 2025.
Previous report
In March 2026, we completed the acquisition of substantially all of the assets of Matrix Capital Markets Group, Inc., a market–leading advisory firm in the Downstream Energy & Convenience Retail sector, with additional expertise and proven success in the Automotive Aftermarket and Outdoor Recreation and Marine sectors. This transaction further strengthens our sector-focused advisory capabilities.
Previous report
In January 2026, the Parent Company issued $400 million of fixed-reset subordinated notes due 2036. These notes bear interest at a rate of 5.299% per annum to January 28, 2031, and at a rate equal to the Five-Year U.S. Treasury Rate plus 1.45% from January 29, 2031 to, but excluding, the maturity date of January 29, 2036.
Previous report
In January 2026, CBNA issued $750 million of fixed-to-floating rate senior notes due 2029. These notes bear interest at a rate of 4.192% per annum to January 28, 2028, and at a rate of compounded SOFR plus 0.70% from January 29, 2028 to, but excluding, the maturity date of January 29, 2029.
Previous report
Both proposals would also eliminate the threshold-based deduction for mortgage servicing assets (“MSAs”), subjecting all MSAs to a 250 percent risk weight, and would provide for the future adjustment of certain dollar-based regulatory thresholds using a predetermined indexing methodology intended to reflect inflation and preserve their intended application over time. We continue to monitor developments related to these proposals and to evaluate their potential impact on our regulatory capital ratios.
Previous report
In April 2026, the OCC adopted a final rule rescinding its Guidelines Establishing Standards for Recovery Planning (the “Guidelines”), which applied to insured national banks, federal savings associations, and federal branches of foreign banks with average total assets exceeding $100 billion (“covered banks”). As a result of the rescission, CBNA is no longer required to develop and maintain formal recovery planning documentation and is no longer subject to OCC examination for compliance with the Guidelines. Although the rescission is intended to reduce unnecessary regulatory burden, covered banks are still expected to maintain prudent risk management practices, including preparing for operational and market stresses, which CBNA continues to address through the Company’s existing risk management framework. The final rule is effective May 1, 2026.
Previous report
Anti-Money Laundering and Countering the Financing of Terrorism (“AML/CFT”) Programs
Previous report
In April 2026, the OCC, FDIC, and National Credit Union Administration (collectively, the “Agencies”) issued a proposed rule to amend their respective AML/CFT program requirements to align with changes concurrently proposed by the Financial Crimes Enforcement Network (“FinCEN”). The proposal requires a bank’s AML/CFT program to be risk-based with a designated AML/CFT officer located in the United States and clarifies that only significant or systemic failures to implement a properly established AML/CFT program would warrant enforcement or significant supervisory actions. FinCEN’s role in the Agencies’ supervision and enforcement process is also enhanced through the establishment of a new consultation framework for certain actions taken by the Agencies. The Agencies proposed a 12-month implementation period following issuance of the final rule and are currently soliciting comments.
Previous report
•Mortgage banking fees decreased reflecting lower MSR valuation results, net of hedge impact, and lower servicing revenue, partially offset by higher production revenue.
Previous report
Net charge-offs decreased $15 million for the three months ended March 31, 2026, compared to the same period in 2025, driven by education and other retail.
Reworded paragraphs (74)
Previous wording
Citizens Financial Group, Inc., headquartered in Providence, Rhode Island, is one of the nation’s oldest and largest financial institutions. We offer a broad range of retail, private banking, wealth management, and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations, and institutions. We help our customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas, and solutions. In Consumer Banking, we provide an integrated experience that includes mobile and online banking, a full-service customer contact center, and the convenience of approximately 3,000 ATMs and approximately 1,000 branches in 14 states and the District of Columbia. Consumer Banking products and services include a full range of banking, lending, savings, wealth management, and small business offerings. Consumer Banking includes Citizens Private Bank and Private Wealth, which integrates banking services and wealth management solutions to serve high- and ultra-high-net-worth individuals and families, as well as investors, entrepreneurs, and businesses. In Commercial Banking, we offer a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities.
Current wording
Citizens Financial Group, Inc., headquartered in Providence, Rhode Island, is one of the nation’s oldest and largest financial institutions. We offer a broad range of retail, private banking, wealth management, and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations, and institutions. We help our customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas, and solutions. In Consumer Banking, we provide an integrated experience that includes mobile and online banking, a full-service customer contact center, and the convenience of approximately 3,000 ATMs and approximately 1,000 branches in 14 states and the District of Columbia. Consumer Banking products and services include a full range of banking, lending, savings, wealth management, and small business offerings. Consumer Banking includes Citizens Private Bank and Private Wealth, which integrate banking services and wealth management solutions to serve high- and ultra-high-net-worth individuals and families, as well as investors, entrepreneurs, and businesses. In Commercial Banking, we offer a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities.
Previous wording
At March 31, 2026, we had total assets of $227.9 billion, total deposits of $184.0 billion, and total stockholders’ equity of $26.2 billion. In addition, we had total client assets of $62.6 billion, including assets under management of $36.8 billion, representing assets for which continuous and regular supervisory or management services are provided, and transactional assets of $25.8 billion, representing assets for which execution, custody, recordkeeping, reporting, and other services are provided.
Current wording
At June 30, 2026, we had total assets of $233.8 billion, total deposits of $185.6 billion, and total stockholders’ equity of $26.2 billion. In addition, we had total client assets of $65.7 billion, including assets under management of $38.7 billion, representing assets for which continuous and regular supervisory or management services are provided, and transactional assets of $27.0 billion, representing assets for which execution, custody, recordkeeping, reporting, and other services are provided.
Previous wording
This summary highlights select financial information of the Company as well as information regarding certain significant events and transactions occurring during the three months ended March 31, 2026. This summary should be read in conjunction with this entire document for a more complete understanding of trends, events, commitments, uncertainties, liquidity, capital resources, and critical accounting policies and estimates. Each of these items, taken individually or collectively, could have an impact on the Company’s financial condition, results of operations, and cash flows. For additional information regarding our financial performance and condition, see “Consolidated Statement of Operations Analysis” and “Consolidated Balance Sheet Analysis.”
Current wording
This summary highlights select financial information of the Company as well as information regarding certain significant events and transactions occurring during the period. This summary should be read in conjunction with this entire document for a more complete understanding of trends, events, commitments, uncertainties, liquidity, capital resources, and critical accounting policies and estimates. Each of these items, taken individually or collectively, could have an impact on the Company’s financial condition, results of operations, and cash flows. For additional information regarding our financial performance and condition, see “Consolidated Statement of Operations Analysis” and “Consolidated Balance Sheet Analysis.”
Previous wording
•Net income of $517 million for the three months ended March 31, 2026 increased $144 million, with earnings per diluted common share up $0.36 to $1.13 compared to the same period in 2025.
Current wording
•Net income of $587 million and $1.1 billion for the three and six months ended June 30, 2026, respectively, increased $151 million and $295 million, with earnings per diluted common share up $0.38 to $1.30 and up $0.73 to $2.42, compared to the same periods in 2025.
Previous wording
•Net interest income of $1.6 billion for the three months ended March 31, 2026 increased $171 million, and net interest margin of 3.14% increased 25 basis points compared to the same period in 2025. The increase in net interest income reflects higher net interest margin driven by improved funding costs, including the reduction of higher-cost funding given runoff of the auto loan portfolio, terminated swap impacts, and fixed-rate asset repricing benefits, partially offset by lower asset yields.
Current wording
•Net interest income of $1.6 billion and $3.2 billion for the three and six months ended June 30, 2026, respectively, increased $194 million and $365 million, and net interest margin of 3.16% and 3.15%, respectively, increased 22 basis points and 24 basis points, compared to the same periods in 2025. The increase in net interest income reflects an increase in interest-earning assets, higher net interest margin, terminated swap impacts, and fixed-rate asset repricing benefits.
Previous wording
•Noninterest income of $606 million for the three months ended March 31, 2026 increased $62 million compared to the same period in 2025, reflecting growth across a number of fee categories, primarily capital markets and wealth fees.
Current wording
•Noninterest income of $652 million and $1.3 billion for the three and six months ended June 30, 2026, respectively, increased $52 million and $114 million compared to the same periods in 2025, driven by growth across numerous fee categories, primarily capital markets and wealth fees, partially offset by mortgage banking fees driven by lower MSR valuation results, net of hedge impact.
Previous wording
•Noninterest expense of $1.4 billion for the three months ended March 31, 2026 increased $64 million compared to the same period in 2025, driven by salaries and employee benefits reflecting hiring related to the Private Bank and Private Wealth build-out and strong capital markets fee performance, partially offset by a decline in other operating expense reflecting lower FDIC deposit insurance costs.
Current wording
•Noninterest expense of $1.4 billion and $2.8 billion for the three and six months ended June 30, 2026, respectively, increased $75 million and $139 million compared to the same periods in 2025, driven by salaries and employee benefits reflecting hiring related to the Private Bank and Private Wealth build-out, and compensation associated with growth in capital markets fees.
Previous wording
•Provision expense of $140 million for the three months ended March 31, 2026 decreased $13 million compared to the same period in 2025, reflecting runoff of certain retail portfolios and improving credit trends and loan mix.
Current wording
•Provision expense of $134 million and $274 million for the three and six months ended June 30, 2026, respectively, decreased $30 million and $43 million compared to the same periods in 2025, reflecting the runoff of certain retail portfolios and improving credit trends and loan mix.
Previous wording
•The efficiency ratio of 63.6% for the three months ended March 31, 2026 compared to 67.9% for the same period in 2025.
Current wording
•The efficiency ratio of 61.1% and 62.3% for the three and six months ended June 30, 2026, respectively, compared to 64.8% and 66.3% for the same periods in 2025.
Previous wording
•Tangible book value per common share of $37.94 at March 31, 2026 was broadly stable compared to $38.07 at December 31, 2025.
Current wording
•Tangible book value per common share of $38.29 at June 30, 2026 was broadly stable compared to $38.07 at December 31, 2025.
Previous wording
During the three months ended March 31, 2026, the Parent Company repurchased $300 million of its outstanding common stock, with remaining capacity of $1.0 billion as of March 31, 2026. See Note 10 and Item 2 for additional information on share repurchase activity.
Current wording
During the three months ended June 30, 2026, the Parent Company repurchased $225 million of its outstanding common stock, with remaining capacity of $775 million as of June 30, 2026. See Note 10 and Item 2 for additional information on share repurchase activity.
Previous wording
In March 2026, the FRB, FDIC, and OCC issued joint proposals to modernize the regulatory capital framework for banking organizations. The first proposal would subject Category I and II banking organizations to a single set of risk-based capital requirements under an expanded risk-based approach (“ERBA”) and a revised market risk framework (the “ERBA proposal”). Category III and Category IV banking organizations would be subject to the revised market risk framework if specified thresholds for aggregate trading assets and liabilities are met and would also have the option to adopt the ERBA in its entirety. The second proposal would revise certain elements of the capital rule under the standardized approach (the “revised standardized approach proposal”) and would apply to banking organizations that are not classified as Category I or II and have not otherwise opted to adopt the ERBA.
Current wording
In March 2026, the FRB, FDIC, and OCC issued joint proposals to modernize the regulatory capital framework for banking organizations. The first proposal would subject Category I and II banking organizations to a single set of risk-based capital requirements under an expanded risk-based approach (“ERBA”) and a revised market risk framework (the “ERBA proposal”). Category III and Category IV banking organizations would be subject to the revised market risk framework if specified thresholds for aggregate trading assets and liabilities are met and would also have the option to adopt the ERBA in its entirety. The second proposal would revise certain elements of the capital rule under the standardized approach (the “revised standardized approach proposal”) and would apply to banking organizations that are not classified as Category I or II and have not elected to adopt the ERBA.
Previous wording
The ERBA proposal would introduce differentiated capital requirements based on specified credit risk factors, establish a standardized operational risk requirement aligned with a banking organization’s business volume, and implement a revised market risk framework that incorporates a new models-based methodology designed to better capture tail risk and market liquidity risk. The proposal would also increase the aggregate trading assets and liabilities threshold for application of the market risk framework from $1 billion to $5 billion for non-Category I and II banking organizations. The revised standardized approach proposal would modify risk-based capital requirements by introducing a broader range of risk weights for residential mortgages based on more granular risk factors and reducing risk weights for certain other exposures. The proposal would also require most elements of AOCI to be recognized in regulatory capital, subject to a five-year transition period.
Current wording
The ERBA proposal would introduce differentiated capital requirements based on specified credit risk factors, establish a standardized operational risk requirement aligned with a banking organization’s business volume, and implement a revised market risk framework. The proposal would also increase the aggregate trading assets and liabilities threshold for application of the market risk framework from $1 billion to $5 billion for non-Category I and II banking organizations. The revised standardized approach proposal would modify risk-based capital requirements by introducing a broader range of risk weights for residential mortgages based on more granular risk factors and reducing risk weights for certain other exposures. The proposal would also require most elements of AOCI to be recognized in regulatory capital, subject to a five-year transition period. We continue to monitor these proposals and evaluate their potential impact on our regulatory capital ratios.
Previous wording
The following table presents the major components of our net interest income. Average balance represents amortized cost, excluding the unamortized basis adjustments related to the transfer of certain HTM securities from AFS. The yield/rate is based on annualized interest income or expense for the periods presented and includes the impact of hedging activities associated with the respective asset and liability categories.
Current wording
The following tables present the major components of our net interest income. Average balance represents amortized cost, excluding the unamortized basis adjustments related to the transfer of certain HTM securities from AFS. The yield/rate is based on annualized interest income or expense for the periods presented and includes the impact of hedging activities associated with the respective asset and liability categories.
Previous wording
Net interest income increased $171 million, or 12%, and net interest margin increased 25 basis points for the three months ended March 31, 2026, compared to the same period in 2025. The increase in net interest income reflects higher net interest margin driven by improved funding costs, including the reduction of higher-cost funding given runoff of the auto loan portfolio, terminated swap impacts, and fixed-rate asset repricing benefits, partially offset by lower asset yields.
Current wording
Net interest income increased $194 million and $365 million for the three and six months ended June 30, 2026, respectively, and net interest margin increased 22 basis points and 24 basis points, compared to the same periods in 2025. The increase in net interest income reflects an increase in interest-earning assets, higher net interest margin, terminated swap impacts, and fixed-rate asset repricing benefits.
Previous wording
Average interest-earning assets increased $6.9 billion for the three months ended March 31, 2026, compared to the same period in 2025, driven by an increase in total loans and leases, cash held in interest-bearing deposits, and investment securities.
Current wording
Average interest-earning assets increased $10.5 billion and $8.7 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, driven by an increase in total loans and leases, cash held in interest-bearing deposits, and investment securities.
Previous wording
Average deposits increased $8.6 billion for the three months ended March 31, 2026, compared to the same period in 2025, driven primarily by growth in the Private Bank and in commercial, partially offset by a reduction in higher-cost brokered deposits.
Current wording
Average deposits increased $9.5 billion and $9.1 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, driven primarily by growth in the Private Bank and in commercial, partially offset by a reduction in higher-cost brokered deposits.
Previous wording
Average total borrowed funds decreased $1.8 billion for the three months ended March 31, 2026, compared to the same period in 2025, driven primarily by a decline in auto collateralized borrowings, given runoff of the auto loan portfolio, partially offset by an increase in FHLB advances.
Current wording
Average total borrowed funds increased $677 million and decreased $556 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The fluctuation during the three- and six-month periods reflects an increase in FHLB advances and a decline in auto collateralized borrowings, given paydowns.
Previous wording
The primary drivers for the change in noninterest income for the three months ended March 31, 2026, compared to the same period in 2025, are described below:
Current wording
The primary drivers for the change in noninterest income for the three and six months ended June 30, 2026, compared to the same periods in 2025, are described below:
Previous wording
•Capital markets fees increased driven by higher M&A, loan syndication, and equity underwriting fees;
Current wording
•Capital markets fees increased driven by higher M&A, loan syndication, and bond underwriting fees during the three- and six-month periods, with higher equity underwriting fees also a driver during the six-month period;
Previous wording
•Wealth fees increased primarily driven by growth in assets under management, largely from net inflows; and
Current wording
•Wealth fees increased primarily driven by growth in assets under management, reflecting net inflows and market appreciation; and
Previous wording
The primary drivers for the change in noninterest expense for the three months ended March 31, 2026, compared to the same period in 2025, are described below:
Current wording
The primary drivers for the change in noninterest expense for the three and six months ended June 30, 2026, compared to the same periods in 2025, are described below:
Previous wording
•Salaries and employee benefits increased reflecting hiring related to the Private Bank and Private Wealth build-out, and strong capital markets fee performance; and
Current wording
•Salaries and employee benefits increased reflecting hiring related to the Private Bank and Private Wealth build-out, and compensation associated with growth in capital markets fees;
Previous wording
•Other operating expense declined reflecting lower FDIC deposit insurance costs.
Current wording
•Other operating expense declined during the six-month period reflecting lower FDIC deposit insurance costs.
Previous wording
Provision expense of $140 million for the three months ended March 31, 2026 compared with a provision of $153 million for the same period in 2025, reflecting runoff of certain retail portfolios and improving credit trends and loan mix.
Current wording
Provision expense of $134 million and $274 million for the three and six months ended June 30, 2026, respectively, compared with a provision of $164 million and $317 million for the same periods in 2025, reflecting the runoff of certain retail portfolios and improving credit trends and loan mix.
Previous wording
Income tax expense of $133 million increased $38 million and our effective income tax rate of 20.5% increased from 20.3% for the three months ended March 31, 2026, compared to the same period in 2025. These increases were driven by a reduced benefit from tax-advantaged investments on higher pre-tax income. Provision for income taxes is calculated by applying the estimated annual effective tax rate to year-to-date pre-tax income, adjusting for discrete items that occurred during the period.
Current wording
Income tax expense of $168 million and $301 million increased $50 million and $88 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. The effective income tax rate of 22.3% and 21.4% for the three and six months ended June 30, 2026 increased from 21.4% and 20.9%, respectively, compared to the same periods in 2025. These increases were driven by a reduced benefit from tax-advantaged investments on higher pretax income. Provision for income taxes is calculated by applying the estimated annual effective tax rate to year-to-date pretax income, adjusting for discrete items that occurred during the period.
Previous wording
(1) Excludes portfolio level basis adjustments of $(4) million and $17 million, respectively, for securities designated in active fair value hedge relationships under the portfolio layer method at March 31, 2026 and December 31, 2025.
Current wording
(1) Excludes portfolio level basis adjustments of $(40) million and $17 million, respectively, for securities designated in active fair value hedge relationships under the portfolio layer method at June 30, 2026 and December 31, 2025.
Previous wording
As of March 31, 2026, U.S. Treasuries and mortgage-backed securities issued by GNMA and GSEs represented 98% of the fair value of our debt securities portfolio, with approximately $39.4 billion of unencumbered high-quality liquid securities serving as potential collateral for borrowings from the FHLB, FRB discount window, and the Fixed Income Clearing Corporation bilateral repurchase agreement market.
Current wording
As of June 30, 2026, U.S. Treasuries and mortgage-backed securities issued by GNMA and GSEs represented 99% of the fair value of our debt securities portfolio, with approximately $40.2 billion of unencumbered high-quality liquid securities serving as potential collateral for borrowings from the FHLB, FRB discount window, and the Fixed Income Clearing Corporation bilateral repurchase agreement market.
Previous wording
We manage our securities portfolio duration and convexity risk through asset selection and securities structure, and maintain duration levels within our risk appetite in the context of our broader interest rate risk framework and limits. As of March 31, 2026, the portfolio’s average effective duration, including hedging actions to reduce duration, was 4 years compared with 3.8 years as of December 31, 2025.
Current wording
We manage our securities portfolio duration and convexity risk through asset selection and securities structure, and maintain duration levels within our risk appetite in the context of our broader interest rate risk framework and limits. As of June 30, 2026, the portfolio’s average effective duration, including hedging actions to reduce duration, was 4.1 years compared with 3.8 years as of December 31, 2025.
Previous wording
The increase in total loans and leases as of March 31, 2026 compared to December 31, 2025 reflects a $777 million increase in commercial driven by net new money originations in corporate banking and higher line of credit utilization, partially offset by CRE paydowns. Retail reflects a $198 million increase driven by growth in home equity and mortgage, including the Private Bank, partially offset by runoff of the auto loan portfolio.
Current wording
The increase in total loans and leases as of June 30, 2026 compared to December 31, 2025 reflects a $3.5 billion increase in commercial driven by net new money originations in corporate banking and higher line of credit utilization, partially offset by CRE paydowns. Retail reflects a $1.3 billion increase driven by growth in home equity and mortgage, including the Private Bank, partially offset by runoff of the auto loan portfolio.
Previous wording
Total deposits as of March 31, 2026 were broadly stable compared to December 31, 2025, reflecting growth in the Private Bank, partially offset by lower commercial deposits given seasonality.
Current wording
Total deposits as of June 30, 2026 increased compared to December 31, 2025, reflecting growth in the Private Bank.
Previous wording
Total borrowed funds of $12.3 billion as of March 31, 2026 increased $1.0 billion compared to December 31, 2025, driven by an increase in senior and subordinated debt, given net issuances, and FHLB advances, partially offset by a decline in secured borrowings collateralized by auto loans as the associated portfolio runs off. For more information regarding our borrowed funds, see “Liquidity Risk” and Note 7.
Current wording
Total borrowed funds of $16.3 billion as of June 30, 2026 increased $5.1 billion compared to December 31, 2025, driven by an increase in FHLB advances and senior and subordinated debt, given net issuances, partially offset by a decline in secured borrowings collateralized by auto loans as the associated portfolio runs off. For more information regarding our borrowed funds, see “Liquidity Risk” and Note 7.
Previous wording
We have two reportable business segments: Consumer Banking and Commercial Banking. The business segments are determined based on the products and services provided, or the type of customer served. Each business segment has a segment head that reports directly to the Chief Executive Officer, who has final authority over resource allocation decisions and performance assessment. The business segments reflect this management structure and the manner in which financial information is currently evaluated by the Chief Executive Officer. See Note 16 for more information regarding our business segments.
Current wording
We have two reportable business segments: Consumer Banking and Commercial Banking. The business segments are determined based on the products and services provided, or the type of customer served. Each business segment is managed by a segment head who reports, directly or indirectly, to the Chief Executive Officer, who has final authority for resource allocation and performance assessment. The business segments reflect this management structure and the manner in which financial information is currently evaluated by the Chief Executive Officer. See Note 16 for more information regarding our business segments.
Previous wording
The following table presents certain financial data of our reportable business segments. Total business segment financial results differ from total consolidated financial results. These differences are reflected in Other non-segment operations, consisting primarily of treasury and community development, and include assets, liabilities, capital, revenues, provision (benefit) for credit losses, expenses, and income tax expense (benefit) not attributed to the Company’s reportable business segments.
Current wording
The following tables present certain financial data of our reportable business segments. Total business segment financial results differ from total consolidated financial results. These differences are reflected in Other non-segment operations, consisting primarily of treasury and community development, and include assets, liabilities, capital, revenues, provision (benefit) for credit losses, expenses, and income tax expense (benefit) not attributed to the Company’s reportable business segments.
Previous wording
Net interest income increased $116 million for the three months ended March 31, 2026, compared to the same period in 2025, driven by higher net interest margin and growth in average interest-earning assets.
Current wording
Net interest income increased $130 million and $246 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, driven by higher net interest margin and growth in average interest-earning assets.
Previous wording
Noninterest income increased $2 million for the three months ended March 31, 2026, compared to the same period in 2025. An increase in wealth fees primarily driven by growth in assets under management, largely from net inflows, was partially offset by a decline in mortgage banking fees reflective of lower MSR valuation results, net of hedge impact, lower servicing revenue, and higher production revenue.
Current wording
Noninterest income decreased $15 million and $13 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. A decline in mortgage banking fees driven by lower MSR valuation results, net of hedge impact, was partially offset by an increase in wealth fees primarily driven by growth in assets under management, reflecting net inflows and market appreciation.
Previous wording
Noninterest expense increased $74 million for the three months ended March 31, 2026, compared to the same period in 2025, driven primarily by salaries and benefits reflecting hiring related to the Private Bank and Private Wealth build-out.
Current wording
Noninterest expense increased $53 million and $127 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, driven primarily by salaries and benefits reflecting hiring related to the Private Bank and Private Wealth build-out.
Previous wording
Net interest income increased $15 million for the three months ended March 31, 2026, compared to the same period in 2025, driven by growth in average interest-earning assets and slightly higher net interest margin.
Current wording
Net interest income increased $28 million and $43 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, driven by growth in average interest-earning assets.
Previous wording
Noninterest income increased $48 million for the three months ended March 31, 2026, compared to the same period in 2025, driven by capital markets fees reflecting higher M&A, loan syndication, and equity underwriting fees.
Current wording
Noninterest income increased $60 million and $108 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, driven by capital markets fees reflecting higher M&A, loan syndication, and bond underwriting fees during the three- and six-month periods, with higher equity underwriting fees also a driver during the six-month period.
Previous wording
Noninterest expense increased $7 million for the three months ended March 31, 2026, compared to the same period in 2025, driven primarily by salaries and benefits given strong capital markets fee performance.
Current wording
Noninterest expense increased $9 million and $16 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, driven primarily by salaries and benefits reflecting compensation associated with growth in capital markets fees.
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Current report — wording carried from elsewhere
During the six months ended June 30, 2026 and 2025, the Parent Company declared dividends on common stock of $396 million and $371 million, respectively, and declared dividends on preferred stock of $66 million and $67 million, respectively.