The company repurchased $825 million of its outstanding common stock during the nine months ended September 30, 2024. This indicates a continued effort to return capital to shareholders, even amidst declining financial performance.

The company issued 400,000 shares of Series H Preferred Stock and redeemed all outstanding shares of the Series D Preferred Stock. These actions reflect active management of the capital structure, potentially optimizing cost of capital and funding sources.

Commercial real estate criticized balances of $5.5 billion at September 30, 2024 increased from $5.0 billion at December 31, 2023, attributable to the continued impacts of interest rates and return-to-office dynamics on the Office sector and the continued impacts of interest rates on the Multi-family sector. This indicates increased credit risk in the CRE portfolio.

Provision expense of $172 million and $525 million for the three and nine months ended September 30, 2024, respectively, compared to $172 million and $516 million for the same periods in 2023. The provision expense for the three and nine months ended September 30, 2024 reflects higher reserves against the CRE office portfolio primarily driven by elevated interest rates and return-to-office dynamics.

The company's net interest income is sensitive to interest rate fluctuations. An instantaneous +200 bps change in interest rates is estimated to increase net interest income by 2.6%.

Net interest income increased $89 million and $268 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023, driven by higher net interest margin reflecting higher interest-earning asset yields and growth in average interest-earning assets.

Net interest income decreased $82 million and $255 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023, driven by lower net interest margin, a decline in average interest-earning assets and higher funding costs.

The SEC adopted a final rule to require registrants to disclose certain climate-related information in their registration statements and annual reports, but the final rule has been stayed pending judicial review. The company will continue to monitor the outcome of this judicial review.