cfg-20220630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended

June 30, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From

(Not Applicable)

Commission File Number 001-36636

(Exact name of the registrant as specified in its charter)


Delaware						05-0412693
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification Number)

One Citizens Plaza, Providence, RI 02903

(Address of principal executive offices, including zip code)

(203) 900-6715

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common stock, $0.01 par value per share	CFG	New York Stock Exchange
Depositary Shares, each representing a 1/40th interest in a share of 6.350% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D	CFG PrD	New York Stock Exchange
Depositary Shares, each representing a 1/40th interest in a share of 5.000% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series E	CFG PrE	New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days.

☑ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☑ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:


Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☑ No

There were 495,643,401 shares of Registrant’s common stock ($0.01 par value) outstanding on July 27, 2022.




	Table of Contents


Glossary of Acronyms and Terms		3

Part I. Financial Information		6

Item 1. Financial Statements		38

Consolidated Balance Sheets (unaudited)		39
Consolidated Statements of Operations (unaudited)		40
Consolidated Statements of Comprehensive Income (unaudited)		41
Consolidated Statements of Changes in Stockholders’ Equity (unaudited)		42
Consolidated Statements of Cash Flows (unaudited)		44
Notes to the Consolidated Financial Statements (unaudited)		45

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		6

Item 3. Quantitative and Qualitative Disclosures about Market Risk		81

Item 4. Controls and Procedures		82


Part II. Other Information		82

Item 1. Legal Proceedings		82
Item 1A. Risk Factors		82
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		82
Item 3. Defaults Upon Senior Securities		82
Item 4. Mine Safety Disclosures		83
Item 5. Other Information		83
Item 6. Exhibits		83


Signature		84

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GLOSSARY OF ACRONYMS AND TERMS

The following is a list of common acronyms and terms we regularly use in our financial reporting:


2021 Form 10-K						Annual Report on Form 10-K for the year ended December 31, 2021
AACL						Adjusted Allowance for Credit Losses
ACL						Allowance for Credit Losses: Allowance for Loan and Lease Losses plus Allowance for Unfunded Lending Commitments
AFS						Available for Sale
ALLL						Allowance for Loan and Lease Losses
ALM						Asset and Liability Management
AOCI						Accumulated Other Comprehensive Income (Loss)
ASU						Accounting Standards Update
ATM						Automated Teller Machine
Board or Board of Directors						The Board of Directors of Citizens Financial Group, Inc.
bps						Basis Points
CARES Act						Coronavirus Aid, Relief, and Economic Security Act
CBNA						Citizens Bank, National Association
CCAR						Comprehensive Capital Analysis and Review
CCB						Capital Conservation Buffer
CCMI						Citizens Capital Markets, Inc.
CECL						Current Expected Credit Losses (ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments)
CET1						Common Equity Tier 1
CET1 capital ratio						Common Equity Tier 1 capital divided by total risk-weighted assets as defined under the U.S. Basel III Standardized approach
Citizens, CFG, the Company, we, us, or our						Citizens Financial Group, Inc. and its Subsidiaries
CLO						Collateralized Loan Obligation
CLTV						Combined Loan-to-Value
COVID-19						Coronavirus Disease 2019
CRE						Commercial Real Estate
DH Capital						DH Capital, LLC
Dodd-Frank Act						The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
EPS						Earnings Per Share
EVE						Economic Value of Equity
Exchange Act						The Securities Exchange Act of 1934
Fannie Mae (FNMA)						Federal National Mortgage Association
FDIC						Federal Deposit Insurance Corporation
FHA						Federal Housing Administration
FHLB						Federal Home Loan Bank
FICO						Fair Isaac Corporation (credit rating)
FRB or Federal Reserve						Board of Governors of the Federal Reserve System and, as applicable, Federal Reserve Bank(s)
Freddie Mac (FHLMC)						Federal Home Loan Mortgage Corporation
FTE						Fully Taxable Equivalent
FTP						Funds Transfer Pricing
GAAP						Accounting Principles Generally Accepted in the United States of America
GDP						Gross Domestic Product
Ginnie Mae (GNMA)						Government National Mortgage Association
GSE						Government Sponsored Entity
HSBC						HSBC Bank U.S.A., N.A.

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HSBC transaction						Acquisition of HSBC East Coast branches and national online deposit business
HTM						Held To Maturity
Investors						Investors Bancorp, Inc.
JMP						JMP Group LLC
Last-of-Layer						Last-of-layer is a fair value hedge of the interest rate risk of a portfolio of similar prepayable assets whereby the last dollar amount within the portfolio of assets is identified as the hedged item
LHFS						Loans Held for Sale
LIBOR						London Interbank Offered Rate
LIHTC						Low Income Housing Tax Credit
MBS						Mortgage-Backed Securities
MD&A						Management’s Discussion and Analysis of Financial Condition and Results of Operations
Mid-Atlantic						District of Columbia, Delaware, Maryland, New Jersey, New York, Pennsylvania, Virginia, and West Virginia
Midwest						Illinois, Indiana, Michigan, and Ohio
Modified CECL Transition						The Day-1 CECL adoption entry booked to retained earnings plus 25% of subsequent CECL ACL reserve build
Modified AACL Transition						The Day-1 CECL adoption entry booked to ACL plus 25% of subsequent CECL ACL reserve build
MSRs						Mortgage Servicing Rights
NCOs						Net charge-offs
New England						Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont
OCC						Office of the Comptroller of the Currency
OCI						Other Comprehensive Income (Loss)
Operating Leverage						Period-over-period percent change in total revenue, less the period-over-period percent change in noninterest expense
Parent Company						Citizens Financial Group, Inc. (the Parent Company of Citizens Bank, National Association and other subsidiaries)
PCD						Purchased Credit Deteriorated
PPP						Paycheck Protection Program
ROTCE						Return on Average Tangible Common Equity
RPA						Risk Participation Agreement
RWA						Risk-Weighted Assets
SBA						United States Small Business Administration
SCB						Stress Capital Buffer
SEC						United States Securities and Exchange Commission
SVaR						Stressed Value at Risk
Tailoring Rules						Rules establishing risk-based categories for determining prudential standards for large U.S. and foreign banking organizations, consistent with the Dodd-Frank Act, as amended by the Economic Growth, Regulatory Relief and Consumer Protection Act
TBAs						To-Be-Announced Mortgage Securities
TDR						Troubled Debt Restructuring
Tier 1 capital ratio						Tier 1 capital, which includes Common Equity Tier 1 capital plus non-cumulative perpetual preferred equity that qualifies as additional tier 1 capital, divided by total risk-weighted assets as defined under the U.S. Basel III Standardized approach
Tier 1 leverage ratio						Tier 1 capital, which includes Common Equity Tier 1 capital plus non-cumulative perpetual preferred equity that qualifies as additional tier 1 capital, divided by quarterly adjusted average assets as defined under the U.S. Basel III Standardized approach
TOP						Tapping Our Potential
Total capital ratio						Total capital, which includes Common Equity Tier 1 capital, tier 1 capital and allowance for credit losses and qualifying subordinated debt that qualifies as tier 2 capital, divided by total risk-weighted assets as defined under the U.S. Basel III Standardized approach
USDA						United States Department of Agriculture

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VA						United States Department of Veterans Affairs
VaR						Value at Risk
VIE						Variable Interest Entities

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PART I. FINANCIAL INFORMATION

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


						Page
Forward-Looking Statements						7
Introduction						8
Financial Performance						9
Results of Operations						11
Net Interest Income						11
Noninterest Income						13
Noninterest Expense						14
Provision for Credit Losses						14
Income Tax Expense						14
Business Operating Segments						14
Analysis of Financial Condition						16
Securities						16
Loans and Leases						17
Allowance for Credit Losses and Nonaccrual Loans and Leases						17
Deposits						23
Borrowed Funds						23
Capital and Regulatory Matters						23
Liquidity						26
Critical Accounting Estimates						29
Accounting and Reporting Developments						31
Risk Governance						31
Market Risk						32
Non-GAAP Financial Measures and Reconciliations						36

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FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements regarding potential future share repurchases and future dividends as well as the potential effects of the COVID-19 disruption and Russia’s invasion of Ukraine on our business, operations, financial performance and prospects, are forward-looking statements. Also, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “goals,” “targets,” “initiatives,” “potentially,” “probably,” “projects,” “outlook,” “guidance” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would,” and “could.”

Forward-looking statements are based upon the current beliefs and expectations of management, and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation:

•Negative economic and political conditions that adversely affect the general economy, housing prices, the job market, consumer confidence and spending habits which may affect, among other things, the level of nonaccrual assets, charge-offs and provision expense;

•The rate of growth in the economy and employment levels, as well as general business and economic conditions, and changes in the competitive environment;

•Our ability to implement our business strategy, including the cost savings and efficiency components, and achieve our financial performance goals, including through the integration of Investors and the HSBC branches;

•The COVID-19 disruption and its effects on the economic and business environments in which we operate;

•The impact of Russia’s invasion of Ukraine and the imposition of sanctions on Russia and other actions in response, including on economic and market conditions, inflationary pressures and the interest rate environment, commodity price and foreign exchange rate volatility, and heightened cybersecurity risks;

•Our ability to meet heightened supervisory requirements and expectations;

•Liabilities and business restrictions resulting from litigation and regulatory investigations;

•Our capital and liquidity requirements under regulatory capital standards and our ability to generate capital internally or raise capital on favorable terms;

•The effect of changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale;

•Changes in interest rates and market liquidity, as well as the magnitude of such changes, which may reduce interest margins, impact funding sources and affect the ability to originate and distribute financial products in the primary and secondary markets;

•The effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin;

•Financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses;

•A failure in or breach of our operational or security systems or infrastructure, or those of our third party vendors or other service providers, including as a result of cyber-attacks;

•Greater than expected costs or other difficulties related to the integration of our business and that of Investors and the relevant HSBC branches;

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•The inability to retain existing Investors or HSBC clients and employees following the closing of the Investors acquisition and HSBC transaction; and

•Management’s ability to identify and manage these and other risks.

In addition to the above factors, we also caution that the actual amounts and timing of any future common stock dividends or share repurchases will be subject to various factors, including our capital position, financial performance, risk-weighted assets, capital impacts of strategic initiatives, market conditions, receipt of required regulatory approvals and other regulatory and accounting considerations, as well as any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will repurchase shares from or pay any dividends to holders of our common stock, or as to the amount of any such repurchases or dividends. Further, statements about the effects of the pandemic and Russia’s invasion of Ukraine on our business, operations, financial performance and prospects may constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the pandemic and Russia’s invasion of Ukraine, actions taken by governmental authorities in response to the pandemic and Russia’s invasion of Ukraine, and the direct and indirect impact of the pandemic and Russia’s invasion of Ukraine on our customers, third parties and us.

More information about factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in the “Risk Factors” section in Part I, Item 1A of our 2021 Form 10-K as well as Part II, Item 1A of our Form 10-Q for the quarter ended March 31, 2022.

INTRODUCTION

Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $226.7 billion in assets as of June 30, 2022. Headquartered in Providence, Rhode Island, we offer a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. We help our customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. In Consumer Banking, we provide an integrated experience that includes mobile and online banking, a full-service customer contact center and the convenience of approximately 3,300 ATMs and more than 1,200 branches in 14 states and the District of Columbia. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, we offer a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities. More information is available at www.citizensbank.com.

On February 18, 2022, CBNA completed the acquisition of the HSBC East Coast branches and national online deposit business. The transaction extends our physical presence and adds customers in several attractive markets, accelerating our national expansion strategy. The transaction includes 66 branches in the New York City metropolitan area, 9 branches in the Mid-Atlantic/Washington D.C. area, and 5 branches in Southeast Florida.

On April 6, 2022, Citizens completed the acquisition of all outstanding shares of Investors for a combination of stock and cash. The acquisition enhances Citizens’ banking franchise, adding an attractive middle market, small business and consumer customer base while building our physical presence in the Mid-Atlantic region with the addition of 154 branches located in the greater New York City and Philadelphia metropolitan areas and across New Jersey.

On June 8, 2022, Citizens completed the acquisition of DH Capital, a private investment banking firm serving companies in the internet infrastructure, software, IT services and communications sectors. This acquisition further strengthens our growing corporate advisory capabilities.

For additional information regarding these acquisitions see Note 2.

The following MD&A is intended to assist readers in their analysis of the accompanying unaudited interim Consolidated Financial Statements and supplemental financial information. It should be read in conjunction with the unaudited interim Consolidated Financial Statements and Notes to the unaudited interim Consolidated Financial Statements in Part I, Item 1, as well as other information contained in this document and our 2021 Form 10-K.

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Non-GAAP Financial Measures

This document contains non-GAAP financial measures denoted as “Underlying” results. Underlying results for any given reporting period exclude certain items that may occur in that period which management does not consider indicative of our on-going financial performance. We believe these non-GAAP financial measures provide useful information to investors because they are used by management to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe our Underlying results in any given reporting period reflect our on-going financial performance, increase comparability of period-to-period results, and are useful to consider in addition to our GAAP financial results.

Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to similar measures used by such companies. We caution investors not to place undue reliance on such non-GAAP financial measures, but to consider them with the most directly comparable GAAP measures. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for our results reported under GAAP.

Non-GAAP measures are denoted throughout our MD&A by the use of the term Underlying. Where there is a reference to these metrics in that paragraph, all measures that follow are on the same basis when applicable. For more information on the computation of non-GAAP financial measures, see “—Non-GAAP Financial Measures and Reconciliations.”

FINANCIAL PERFORMANCE

Key Highlights

Net income decreased $284 million to $364 million and decreased $475 million to $784 million, with earnings per diluted common share of $0.67, down $0.77 from $1.44, and $1.58, down $1.23 from $2.81, for the three and six months ended June 30, 2022, respectively, compared to the same periods in 2021.

Results reflect notable items of $231 million or $0.47 per diluted common share, net of tax benefit, for the three months ended June 30, 2022, compared to $8 million or $0.02 per diluted common share, net of tax benefit, for the same period in 2021. For the six months ended June 30, 2022, notable items were $287 million or $0.63 per diluted common share, net of tax benefit, as compared to $23 million or $0.06 per diluted common share, net of tax benefit, for the same period in 2021.


Table 1: Notable Items
	Three Months Ended June 30, 2022
		Less: notable items
(in millions)	Reported results (GAAP)	Integration related costs(1)	TOP and other(2)	Provision(3)	Underlying results (non-GAAP)
Provision (benefit) for credit losses	$216	$—	$—	$145	$71
Noninterest income	494	(31)	—	—	525
Noninterest expense	1,305	104	21	—	1,180
Income tax expense	114	(28)	(5)	(37)	184


	Three Months Ended June 30, 2021
		Less: notable items
(in millions)	Reported results (GAAP)	Integration related costs(1)	TOP and other(2)	Provision	Underlying results (non-GAAP)
Provision (benefit) for credit losses	($213)	$—	$—	$—	($213)
Noninterest income	485	—	—	—	485
Noninterest expense	991	2	9	—	980
Income tax expense	183	(1)	(2)	—	186

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	Six Months Ended June 30, 2022
		Less: notable items
(in millions)	Reported results (GAAP)	Integration related costs(1)	TOP and other(2)	Provision(3)	Underlying results (non-GAAP)
Provision (benefit) for credit losses	$219	$—	$—	$169	$50
Noninterest income	992	(31)	—	—	1,023
Noninterest expense	2,411	141	32	—	2,238
Income tax expense	230	(38)	(5)	(43)	316


	Six Months Ended June 30, 2021
		Less: notable items
(in millions)	Reported results (GAAP)	Integration related costs(1)	TOP and other(2)	Provision	Underlying results (non-GAAP)
Provision (benefit) for credit losses	($353)	$—	$—	$—	($353)
Noninterest income	1,027	—	—	—	1,027
Noninterest expense	2,009	2	29	—	1,978
Income tax expense	353	(1)	(7)	—	361

(1) Includes integration related costs associated with acquisitions for the three and six months ended June 30, 2022 and 2021, and mark-to-market losses on loans acquired from Investors classified as LHFS for the three and six months ended June 30, 2022.

(2) Includes our TOP transformational and revenue and efficiency initiatives for the three and six months ended June 30, 2022 and 2021, and income tax impacts related to legacy tax matters for the six months ended June 30, 2022.

(3) Includes the initial provision for credit losses of $145 million and $169 million for the three and six months ended June 30, 2022, respectively, tied to the Investors acquisition and the HSBC transaction. As required by purchase accounting, a fair value mark for performing loans including both credit and interest rate components is recorded in addition to the provision for credit losses expense, thus the credit exposure has been “double counted”.

•Net income available to common stockholders decreased $284 million to $332 million and decreased $476 million to $728 million for the three and six months ended June 30, 2022, respectively, compared to the same periods in 2021.

◦On an Underlying basis, which excludes notable items, net income available to common stockholders of $563 million and $1.0 billion for the three and six months ended June 30, 2022, respectively, compared with $624 million and $1.2 billion for the same periods in 2021.

◦On an Underlying basis, earnings per diluted common share of $1.14 and $2.21 for the three and six months ended June 30, 2022, respectively, compared to $1.46 and $2.87 for the same periods in 2021.

•Total revenue increased $390 million to $2.0 billion and increased $376 million to $3.6 billion for the three and six months ended June 30, 2022, respectively, compared to the same periods in 2021, driven by increases of 34% and 18%, respectively, in net interest income, including the impact of the Investors acquisition and the HSBC transaction.

•The efficiency ratio of 65.3% and 66.2% for the three and six months ended June 30, 2022, respectively, compared to 61.6% and 61.5% for the same periods in 2021.

◦On an Underlying basis, the efficiency ratio of 58.2% and 60.9% for the three and six months ended June 30, 2022, respectively, compared to 60.9% and 60.6% for the same periods in 2021.

•ROTCE of 9.1% and 10.2% for the three and six months ended June 30, 2022, respectively, compared to 17.5% and 17.3% for the same periods in 2021.

◦On an Underlying basis, ROTCE of 15.5% and 14.2% for the three and six months ended June 30, 2022, respectively, compared to 17.7% for both periods in 2021.

•Tangible book value per common share of $29.14 decreased 16% from December 31, 2021.

For additional information regarding our financial performance, see “—Results of Operations” included in this report.

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RESULTS OF OPERATIONS

Net Interest Income

Net interest income is our largest source of revenue and is the difference between the interest earned on interest-earning assets (generally loans, leases and investment securities) and the interest expense incurred in connection with interest-bearing liabilities (generally deposits and borrowed funds). The level of net interest income is primarily a function of the difference between the effective yield on our average interest-earning assets and the effective cost of our interest-bearing liabilities. These factors are influenced by the pricing and mix of interest-earning assets and interest-bearing liabilities which, in turn, are impacted by external factors such as local economic conditions, competition for loans and deposits, the monetary policy of the FRB and market interest rates. For further discussion, refer to “—Market Risk — Non-Trading Risk,” and “—Risk Governance” as described in our 2021 Form 10-K.


Table 2: Major Components of Net Interest Income
	Three Months Ended June 30,
	2022				2021				Change
(dollars in millions)	Average Balances	Income/ Expense	Yields/ Rates		Average Balances	Income/ Expense	Yields/ Rates		Average Balances	Yields/ Rates (bps)
Assets
Interest-bearing cash and due from banks and deposits in banks	$4,630	$13	1.06	%	$11,259	$3	0.12	%	($6,629)	94 bps
Taxable investment securities	35,900	201	2.25		27,597	124	1.80		8,303	45
Non-taxable investment securities	3	—	2.62		3	—	2.60		—	2
Total investment securities	35,903	201	2.25		27,600	124	1.80		8,303	45
Commercial and industrial	50,517	418	3.28		44,388	345	3.08		6,129	20
Commercial real estate	27,592	243	3.48		14,473	95	2.58		13,119	90
Leases	1,575	10	2.61		1,792	12	2.76		(217)	(15)
Total commercial loans and leases	79,684	671	3.33		60,653	452	2.96		19,031	37
Residential mortgages	28,486	221	3.10		20,242	154	3.04		8,244	6
Home equity	12,811	105	3.27		11,825	92	3.13		986	14
Automobile	14,172	127	3.60		12,526	125	4.00		1,646	(40)
Education	13,144	137	4.18		12,632	135	4.26		512	(8)
Other retail	5,557	109	7.87		5,612	100	7.13		(55)	74
Total retail loans	74,170	699	3.77		62,837	606	3.86		11,333	(9)
Total loans and leases	153,854	1,370	3.55		123,490	1,058	3.42		30,364	13
Loans held for sale, at fair value	1,937	17	3.60		3,751	24	2.55		(1,814)	105
Other loans held for sale	2,353	25	4.21		233	2	2.99		2,120	122
Interest-earning assets	198,677	1,626	3.26		166,333	1,211	2.90		32,344	36
Noninterest-earning assets	22,290				18,123				4,167
Total assets	$220,967				$184,456				$36,511
Liabilities and Stockholders’ Equity
Checking with interest	$38,747	$15	0.16	%	$27,278	$5	0.08	%	$11,469	8
Money market	48,795	23	0.19		49,394	21	0.17		(599)	2
Savings	27,661	9	0.14		20,077	5	0.10		7,584	4
Term	6,970	7	0.31		6,970	11	0.61		—	(30)
Total interest-bearing deposits	122,173	54	0.18		103,719	42	0.16		18,454	2
Short-term borrowed funds	3,995	10	0.98		69	—	0.87		3,926	11
Long-term borrowed funds	10,222	57	2.26		7,434	45	2.41		2,788	(15)
Total borrowed funds	14,217	67	1.90		7,503	45	2.40		6,714	(50)
Total interest-bearing liabilities	136,390	121	0.36		111,222	87	0.31		25,168	5
Demand deposits	54,189				46,630				7,559
Other noninterest-bearing liabilities	5,991				3,741				2,250
Total liabilities	196,570				161,593				34,977
Stockholders’ equity	24,397				22,863				1,534
Total liabilities and stockholders’ equity	$220,967				$184,456				$36,511
Interest rate spread			2.90	%			2.59	%		31
Net interest income and net interest margin		$1,505	3.04	%		$1,124	2.71	%		33
Net interest income and net interest margin, FTE(1)		$1,507	3.04	%		$1,126	2.72	%		32
Memo: Total deposits (interest-bearing and demand)	$176,362	$54	0.12	%	$150,349	$42	0.11	%	$26,013	1	bp

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	Six Months Ended June 30,
	2022				2021				Change
(dollars in millions)	Average Balances	Income/ Expense	Yields/ Rates		Average Balances	Income/ Expense	Yields/ Rates		Average Balances	Yields/ Rates (bps)
Assets:
Interest-bearing cash and due from banks and deposits in banks	$6,333	$17	0.52	%	$11,061	$6	0.11	%	($4,728)	41 bps
Taxable investment securities	32,591	339	2.08		27,316	252	1.84		5,275	24
Non-taxable investment securities	2	—	2.61		3	—	2.60		(1)	1
Total investment securities	32,593	339	2.08		27,319	252	1.84		5,274	24
Commercial and industrial	47,747	746	3.11		44,338	692	3.10		3,409	1
Commercial real estate	20,867	333	3.17		14,574	189	2.58		6,293	59
Leases	1,568	21	2.71		1,852	25	2.73		(284)	(2)
Total commercial loans and leases	70,182	1,100	3.12		60,764	906	2.97		9,418	15
Residential mortgages	25,987	390	3.00		19,817	302	3.05		6,170	(5)
Home equity	12,469	195	3.15		11,912	187	3.16		557	(1)
Automobile	14,352	254	3.58		12,378	250	4.07		1,974	(49)
Education	13,091	268	4.13