Noninterest expense decreased by 7.8% YoY in Q2 2024, primarily due to synergies from the MUB acquisition and lower merger and integration charges, prudent expense management and continued focus on operational efficiency.

Commercial loans increased by $3.4 billion since December 31, 2023, primarily due to growth in corporate banking.

Commercial real estate loans decreased by $1.6 billion since December 31, 2023, primarily due to payoffs exceeding a reduced level of new originations.

Management highlights synergies from the MUB acquisition, lower merger and integration charges, and prudent expense management as key drivers for the decrease in noninterest expenses.

Management discusses the impacts of balance sheet repositioning and capital management actions, along with stabilization in the economic and credit environment, on the provision for credit losses.

The company increased investment securities by 4.9% since December 31, 2023, driven by balance sheet positioning and liquidity management.

The company's 'Safe Harbor' statement includes risks such as deterioration in general business and economic conditions, and turbulence in financial markets, which could adversely affect revenues, asset values, and funding availability.

The company's 'Safe Harbor' statement includes risks such as turmoil and volatility in the financial services industry, increases in FDIC assessments, and uncertainty regarding regulatory changes.

The company's 'Safe Harbor' statement includes risks related to breaches in data security, failures in operational and technology systems, and failures to safeguard personal information.

The company manages credit risk through diversification of its loan portfolio, achieved through limit setting by product type criteria, such as industry, and identification of credit concentrations.

The company utilizes secondary markets to reduce its credit and other asset/liability risks, particularly in residential mortgages.

The company's credit risk management strategy includes well-defined, centralized credit policies, uniform underwriting criteria, and ongoing risk monitoring and review processes.

Noninterest expense decreased by 7.8% YoY in Q2 2024, primarily due to synergies from the MUB acquisition and lower merger and integration charges.

Management highlights prudent expense management and continued focus on operational efficiency as key drivers for lower noninterest expenses.

Technology and communications expense decreased primarily due to synergies from the MUB acquisition.

The company maintains a cybersecurity risk program which provides centralized planning and management of related and interdependent work with a focus on risks from cybersecurity threats.

The company highlights its ability to implement technological changes to respond to customer needs and meet competitive demands.

The company's consumer lending segment utilizes several distinct business processes and channels to originate consumer credit, including mobile and online banking.

The company has currently suspended all common stock repurchases, except for those done exclusively in connection with its stock-based compensation programs.

The company is committed to managing capital to maintain strong protection for depositors and creditors and for maximum shareholder benefit.

The company manages its capital to exceed regulatory capital requirements for banking organizations.

The company's investments in VIEs are primarily related to investments promoting affordable housing, community development and renewable energy sources.

Some of the company's tax-advantaged investments support the Company's regulatory compliance with the Community Reinvestment Act.

The company's profitable operations, sound credit quality and strong credit ratings and capital position have enabled it to develop a large and reliable base of core deposit funding.

The company continues to monitor economic uncertainty related to interest rates, inflationary pressures and other economic factors that affect the financial strength of corporate and consumer borrowers.

Commercial real estate valuations were also affected by elevated interest rates and the changing demand for office properties.

The company notes the impact of changes in customer behavior and preferences and the ability to implement technological changes to respond to customer needs and meet competitive demands.