Consumer Banking net interest income increased $97 million for the three months ended June 30, 2024, driven by higher net interest margin reflecting higher interest-earning asset yields and growth in average interest-earning assets. These increases were partially offset by higher funding costs.

Commercial Banking net interest income decreased $90 million for the three months ended June 30, 2024, driven by lower net interest margin, a decline in average interest-earning assets and higher funding costs.

Average loans and leases decreased $5.0 billion for the three months ended June 30, 2024, driven by planned Non-Core portfolio runoff.

Noninterest expense increased $40 million for the three months ended June 30, 2024, driven primarily by salaries and benefits reflecting our Private Bank start-up investment.

Net charge-offs increased $16 million for the three months ended June 30, 2024, driven primarily by other retail and education.

Total commercial criticized balances of $8.4 billion at June 30, 2024 decreased $92 million compared to December 31, 2023. Commercial and industrial criticized balances decreased, while commercial real estate criticized balances increased.

The SEC adopted a final rule to require registrants to disclose certain climate-related information, but the rule is stayed pending judicial review. This introduces uncertainty regarding future disclosure requirements.

The ACL economic forecast over a two-year reasonable and supportable period was consistent with December 31, 2023, with peak unemployment of approximately 5.0% and start-to-trough real GDP decline of approximately 0.4%.

Existing and evolving regulatory liquidity requirements represent another key driver of systemic liquidity conditions and liquidity management practices. The FRB and OCC regularly evaluate our liquidity as part of the overall supervisory process.

Wealth fees reflect increased sales activity and asset management fees given a constructive market environment and contribution from the Private Bank.

Foreign exchange and derivative products revenue decreased given reduced client activity related to interest rate and commodities hedging.

Mortgage banking fees declined reflecting lower production fees, partially offset by a higher MSR valuation, net of hedge impact. Lower servicing fees are also a driver during the six-month period.

The efficiency ratio increased to 66.3% for the three months ended June 30, 2024, compared to 62.3% for the same period in 2023. This indicates a decrease in operational efficiency.

Noninterest expense was stable for the three months ended June 30, 2024 compared to the same period in 2023, indicating no significant improvements in cost control.

Average total borrowed funds decreased $2.8 billion for the three months ended June 30, 2024, reflecting a decline in FHLB advances driven by Non-Core portfolio runoff, partially offset by a remix of funding to long-term senior debt and secured borrowings collateralized by auto loans.

Equipment and software expenses increased, reflecting technology investments and maintenance.

Applies to assets that meet the definition of intangible assets, do not provide the asset holder with enforceable rights to goods, services or other assets, reside on a distributed ledger, are secured through cryptography, are fungible, and are not created or issued by the reporting entity or its related parties

The Company continues to manage asset sensitivity within the scope of our policy, changing market conditions and changes in our balance sheet

On June 28, 2024, our Board of Directors increased the capacity of our common share repurchase program to $1.25 billion, an increase of $656 million above the $594 million of capacity remaining under the prior February 2023 authorization.

Issued 400,000 shares of 7.375% fixed-rate non-cumulative perpetual Series H Preferred Stock at an aggregate offering price of $400 million, with net proceeds utilized to redeem the floating rate non-cumulative perpetual Series D Preferred Stock and for general corporate purposes.

Issued a notice to redeem all outstanding shares of the 9.205% floating rate non-cumulative perpetual Series D Preferred Stock, which was redeemed on July 8, 2024.

On March 6, 2024, the SEC adopted a final rule to require registrants to disclose certain climate-related information in their registration statements and annual reports.

The Company participates in the NMTC program which provides a tax incentive for private sector investment into economic development projects and businesses located in low-income communities.

The purpose of the Company's LIHTC investments is to assist in achieving the goals of the Community Reinvestment Act and to earn an adequate return of capital.

The ACL economic forecast over a two-year reasonable and supportable period was consistent with December 31, 2023, with peak unemployment of approximately 5.0% and start-to-trough real GDP decline of approximately 0.4%. These forecasts reflect a mild recession.

This market risk is composed of interest rate risk, as we have no commodity risk and de minimis direct currency and equity risk.

As a bank and financial holding company, we are subject to regulation and supervision by the FRB. Our banking subsidiary, CBNA, is a national banking association primarily regulated by the OCC.