During the second quarter of 2024, the Bancorp entered into and settled an accelerated share repurchase transaction. As part of the transaction, the Bancorp entered into a forward contract in which the final number of shares delivered at settlement was based on a discount to the average daily volume weighted-average price of the Bancorp's common stock during the term of the repurchase agreement.

On January 29, 2024, 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 until January 28, 2031.

The Bancorp's estimate of its allocation of the FDIC special assessment was $263 million, based on the most recent information provided by the FDIC. As a result, the Bancorp recorded incremental expenses of $6 million and $39 million during the three and six months ended June 30, 2024, respectively.

On July 9, 2024, the Bank and the CFPB agreed to resolve previously outstanding litigation which alleged violations of the Consumer Financial Protection Act. The Bank agreed to pay a civil monetary penalty of $15 million and agreed to create a compliance plan. Concurrently, the Bank also agreed to entry of a Consent Order related to a since-discontinued program in its auto lending business and agreed to pay a $5 million civil monetary penalty.

Changes in interest rates can affect numerous aspects of the Bancorp's business and may impact the Bancorp's future performance. If financial markets remain volatile, this may impact the future performance of various segments of the Bancorp's business.

With inflation trending down and employment growth softening, FRB officials have signaled that rate cuts are possible in the second half of 2024. Financial markets continue to anticipate interest rate cuts later this year, although the timing and magnitude remains uncertain.

The Bancorp continues to closely monitor the pace of inflation and the impacts of inflation on the broader market. Changes in interest rates can affect numerous aspects of the Bancorp's business and may impact the Bancorp's future performance.