The Bancorp issued and sold $1.0 billion of fixed-rate/floating-rate senior notes which will mature on January 29, 2032. The senior notes will bear interest at a rate of 5.631% per annum to, but excluding, January 29, 2031. From, and including January 29, 2031 until, but excluding January 29, 2032, the senior notes will bear interest at a rate of compounded SOFR plus 1.840%.

In January 2024, the Bancorp transferred $12.6 billion (amortized cost basis) of securities from available-for-sale to held-to-maturity to reflect the Bancorp's change in intent to hold these securities to maturity in order to reduce potential capital volatility associated with investment security market price fluctuations.

The Bancorp recorded an incremental liability and expense of $33 million associated with the FDIC special assessment in Q1 2024. This assessment is related to bank failures in 2023 and will be paid over eight quarterly assessment periods.

The Bancorp is evaluating proposed rulemakings from U.S. banking agencies regarding revisions to Basel III capital rules and long-term debt requirements. The potential impact is dependent on the finalization of the proposed rules.

Nonperforming portfolio assets as a percent of portfolio loans and leases and OREO were 0.64% at March 31, 2024 compared to 0.59% at December 31, 2023. This indicates a slight deterioration in credit quality.

Net losses charged off as a percent of average portfolio loans and leases were 0.38% for the three months ended March 31, 2024 compared to 0.26% for the same period in the prior year.

Commercial Banking net income was $369 million for the three months ended March 31, 2024 compared to $580 million for the same period in the prior year, primarily driven by a decrease in net interest income, an increase in provision for credit losses and a decrease in noninterest income.

Net income was $527 million for the three months ended March 31, 2024 compared to $659 million for the same period in the prior year, primarily driven by a decrease in net interest income, an increase in provision for credit losses and a decrease in noninterest income.

Net income was $46 million for the three months ended March 31, 2024 compared to $74 million for the same period in the prior year. The decrease was primarily driven by a decrease in net interest income and an increase in noninterest expense, partially offset by an increase in noninterest income.