During the three and nine months ended September 30, 2024, the Bancorp entered into and settled accelerated share repurchase transactions totaling $200 million and $325 million, respectively. This indicates a continued effort to return capital to shareholders.

The Bancorp issued and sold $1.0 billion of fixed-rate/floating-rate senior notes in January 2024 and $750 million of fixed-rate/floating-rate senior notes in September 2024. These offerings bolster the Bancorp's capital position.

The Bancorp's estimate of its allocation of the special assessment was $263 million, based on the most recent information provided by the FDIC. As a result, the Bancorp recorded an incremental expense of $39 million during the first six months of 2024. This special assessment increases the bank's operating expenses.

The Bank and the CFPB agreed to resolve previously outstanding litigation which alleged violations of the Consumer Financial Protection Act, the Truth in Lending Act and Truth in Savings Act, resulting in a civil monetary penalty of $15 million. Additionally, the Bank agreed to pay a $5 million civil monetary penalty related to auto lending business practices.

In January 2024, the Bancorp transferred $12.6 billion (amortized cost basis) of securities from available-for-sale to held-to-maturity to reduce potential capital volatility associated with investment security market price fluctuations. This transfer mitigates risks related to capital ratios.

Net interest income was negatively impacted by higher funding costs due to increases in market interest rates and deposit balance migration into higher yielding products. The increases for the three and nine months ended September 30, 2024 were also driven by increases in the average balances of interest-bearing core deposits.

Residential mortgage loan originations increased to $1.9 billion from $1.5 billion for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 primarily due to the impact of lower market interest rates on originations.

Noninterest expense increased $56 million and $57 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily due to increases in compensation and benefits expense, other noninterest expense and technology and communications expense. This indicates ongoing investments in personnel and technology.

Marketing expense decreased $9 million and $4 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily due to decreases in advertising costs.

Leasing business expense decreased $8 million and $25 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in the prior year primarily driven by decreases in depreciation expense associated with operating lease equipment.

Total loans and leases decreased $332 million from December 31, 2023 driven by a decrease in commercial loans and leases, partially offset by an increase in consumer loans.

Core deposits increased $1.4 billion, or 1%, from December 31, 2023 primarily due to an increase in transaction deposits, partially offset by a decrease in CDs $250,000 or less.

Total borrowings decreased $745 million, or 4%, from December 31, 2023 primarily due to a decrease in other short-term borrowings partially offset by an increase in long-term debt.