cfg-20230930

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

September 30, 2023

☐ 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 466,222,967 shares of the registrant’s common stock ($0.01 par value) outstanding on October 26, 2023.




	Table of Contents


Glossary of Acronyms and Terms		3

Part I. Financial Information		5

Item 1. Financial Statements		41

Consolidated Balance Sheets (unaudited)		42
Consolidated Statements of Operations (unaudited)		43
Consolidated Statements of Comprehensive Income (unaudited)		44
Consolidated Statements of Changes in Stockholders’ Equity (unaudited)		45
Consolidated Statements of Cash Flows (unaudited)		47
Notes to Consolidated Financial Statements (unaudited)		48

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		5

Item 3. Quantitative and Qualitative Disclosures about Market Risk		85

Item 4. Controls and Procedures		85


Part II. Other Information		85

Item 1. Legal Proceedings		85
Item 1A. Risk Factors		85
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		86
Item 3. Defaults Upon Senior Securities		86
Item 4. Mine Safety Disclosures		86
Item 5. Other Information		86
Item 6. Exhibits		86


Signature		87

Citizens Financial Group, Inc. | 2

GLOSSARY OF ACRONYMS AND TERMS

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


2022 Form 10-K						Annual Report on Form 10-K for the year ended December 31, 2022
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
CBNA						Citizens Bank, National Association
CCAR						Comprehensive Capital Analysis and Review
CCB						Capital Conservation Buffer
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
CLTV						Combined Loan-to-Value
COVID						Coronavirus Disease
EPS						Earnings Per Share
EVE						Economic Value of Equity
Exchange Act						The Securities Exchange Act of 1934, as amended
Fannie Mae (FNMA)						Federal National Mortgage Association
FCA						Financial Conduct Authority
FDIC						Federal Deposit Insurance Corporation
FDM						Financially Distressed Modification
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.
HSBC transaction						Acquisition of HSBC East Coast branches and national online deposit business
HTM						Held To Maturity
Investors						Investors Bancorp, Inc. and its subsidiaries
JMP						JMP Group LLC

Citizens Financial Group, Inc. | 3


LHFS						Loans Held for Sale
LIBOR						London Interbank Offered Rate
LIHTC						Low Income Housing Tax Credit
M&A						Merger and Acquisition
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 AACL transition						The Day-1 CECL adoption entry booked to ACL plus 25% of subsequent CECL ACL reserve build
Modified CECL transition						The Day-1 CECL adoption entry booked to retained earnings plus 25% of subsequent CECL ACL reserve build
MSRs						Mortgage Servicing Rights
New England						Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont
NMTC						New Markets Tax Credit
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						The U.S. Small Business Administration’s 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
SOFR						Secured Overnight Financing Rate
SVaR						Stressed Value at Risk
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
VA						United States Department of Veterans Affairs
VaR						Value at Risk
VIE						Variable Interest Entity

Citizens Financial Group, Inc. | 4

PART I. FINANCIAL INFORMATION

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


						Page
Forward-Looking Statements						6
Introduction						7
Financial Performance						8
Results of Operations						10
Net Interest Income						10
Noninterest Income						12
Noninterest Expense						13
Provision for Credit Losses						13
Income Tax Expense						13
Business Operating Segments						13
Analysis of Financial Condition						16
Securities						16
Loans and Leases						17
Credit Quality						17
Deposits						21
Borrowed Funds						22
Capital and Regulatory Matters						22
Liquidity						28
Critical Accounting Estimates						31
Risk Governance						32
Market Risk						33
Non-GAAP Financial Measures and Reconciliations						39

Citizens Financial Group, Inc. | 5

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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, business and political conditions, including as a result of the interest rate environment, supply chain disruptions, inflationary pressures and labor shortages, that adversely affect the general economy, housing prices, the job market, consumer confidence and spending habits;

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

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

•The effect of changes in our credit ratings on our cost of funding, access to capital markets, ability to market our securities, and overall liquidity position;

•The effect of changes in the level of commercial and consumer deposits on our funding costs and net interest margin;

•Our ability to implement our business strategy, including the cost savings and efficiency components, and achieve our financial performance goals, including the anticipated benefits of the Investors acquisition and HSBC transaction;

•The effects of geopolitical instability, including the wars in Ukraine and Israel, 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;

•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;

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

•Environmental risks, such as physical or transitional risks associated with climate change, and social and governance risks, that could adversely affect our reputation, operations, business, and customers;

•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; and

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

Citizens Financial Group, Inc. | 6

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, capital impacts of strategic initiatives, market conditions, and regulatory 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.

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 2022 Form 10-K.

INTRODUCTION

Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $225.3 billion in assets as of September 30, 2023. 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 1,100 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.

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 Consolidated Financial Statements in Part I, Item 1, as well as other information contained in this document and our 2022 Form 10-K.

Non-GAAP Financial Measures

This document contains non-GAAP financial measures denoted as “Underlying” results and “including AOCI impact.” 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 in that period and, accordingly, are useful to consider in addition to our GAAP financial results. We further believe the presentation of Underlying results increases comparability of period-to-period 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.”

Citizens Financial Group, Inc. | 7

FINANCIAL PERFORMANCE

Key Highlights

Net income decreased $206 million and $1 million for the three and nine months ended September 30, 2023, respectively, with earnings per diluted common share down $0.38 to $0.85 and down $0.06 to $2.78 compared to the same periods in 2022.

Results reflect notable items of $18 million or $0.04 per diluted common share, net of tax benefit, for the three months ended September 30, 2023, compared to $33 million or $0.07 per diluted common share, net of tax benefit, for the same period in 2022. For the nine months ended September 30, 2023, notable items were $120 million or $0.25 per diluted common share, net of tax benefit, as compared to $320 million or $0.68 per diluted common share, net of tax benefit, for the same period in 2022.


Table 1: Notable Items
	Three Months Ended September 30, 2023
		Less: notable items
(dollars in millions)	Reported results (GAAP)	Integration related costs(1)	TOP and other(2)	Provision	Underlying results (non-GAAP)


Noninterest expense	$1,293	$8	$14	$—	$1,271
Income tax expense	119	(2)	(2)	—	123


	Three Months Ended September 30, 2022
		Less: notable items
(dollars in millions)	Reported results (GAAP)	Integration related costs(1)	TOP and other(2)	Provision	Underlying results (non-GAAP)
Provision for credit losses	$123	$—	$—	$—	$123
Noninterest income	512	—	—	—	512
Noninterest expense	1,241	37	9	—	1,195
Income tax expense	177	(11)	(2)	—	190


	Nine Months Ended September 30, 2023
		Less: notable items
(dollars in millions)	Reported results (GAAP)	Integration related costs(1)	TOP and other(2)	Provision	Underlying results (non-GAAP)


Noninterest expense	$3,895	$99	$62	$—	$3,734
Income tax expense	406	(26)	(15)	—	447


	Nine Months Ended September 30, 2022
		Less: notable items
(dollars in millions)	Reported results (GAAP)	Integration related costs(1)	TOP and other(2)	Provision(3)	Underlying results (non-GAAP)
Provision for credit losses	$342	$—	$—	$169	$173
Noninterest income	1,504	(31)	—	—	1,535
Noninterest expense	3,652	178	41	—	3,433
Income tax expense	407	(49)	(7)	(43)	506

(1) Includes integration related costs associated with acquisitions for the three and nine months ended September 30, 2023 and 2022, and mark-to-market losses on loans acquired from Investors classified as LHFS for the nine months ended September 30, 2022.

(2) Includes our TOP transformational and revenue and efficiency initiatives for the three and nine months ended September 30, 2023 and 2022, and income tax impacts related to legacy tax matters for the nine months ended September 30, 2022.

(3) Includes the initial provision for credit losses tied to the HSBC transaction and Investors acquisition. 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”.

Citizens Financial Group, Inc. | 8

•Net income available to common stockholders decreased $211 million and $7 million for the three and nine months ended September 30, 2023, respectively, compared to the same periods in 2022.

◦On an Underlying basis, which excludes notable items, net income available to common stockholders of $418 million and $1.5 billion for the three and nine months ended September 30, 2023, respectively, compared with $644 million and $1.7 billion for the same periods in 2022.

◦On an Underlying basis, earnings per diluted common share of $0.89 and $3.03 for the three and nine months ended September 30, 2023, respectively, compared to $1.30 and $3.52 for the same periods in 2022.

•Total revenue decreased $163 million and increased $415 million for the three and nine months ended September 30, 2023, respectively, compared to the same periods in 2022. The three-month decline was driven by a decrease of 9% in net interest income. The nine-month increase was driven by an increase of 10% in net interest income, including the impacts of the HSBC transaction and Investors acquisition.

•The efficiency ratio of 64.2% and 62.5% for the three and nine months ended September 30, 2023, respectively, compared to 57.0% and 62.7% for the same periods in 2022.

◦On an Underlying basis, the efficiency ratio of 63.1% and 59.9% for the three and nine months ended September 30, 2023, respectively, compared to 54.9% and 58.7% for the same periods in 2022.

•ROTCE of 12.0% and 12.9% for the three and nine months ended September 30, 2023, respectively, compared to 17.0% and 12.5% for the same periods in 2022.

◦On an Underlying basis, ROTCE of 12.5% and 14.1% for the three and nine months ended September 30, 2023, respectively, compared to 17.9% and 15.5% for the same periods in 2022.

•Tangible book value per common share of $27.73 decreased 1% from December 31, 2022.

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 economic conditions, competition for loans and deposits, the monetary policy of the FRB and market interest rates. For further discussion, refer to the “Market Risk” and “Risk Governance” sections of our 2022 Form 10-K.


Table 2: Major Components of Net Interest Income
	Three Months Ended September 30,
	2023				2022				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	$8,005	$111	5.42	%	$5,203	$36	2.78	%	$2,802	264 bps
Taxable investment securities	39,271	290	2.95		38,507	243	2.50		764	45
Non-taxable investment securities	2	—	2.68		3	—	1.88		(1)	80
Total investment securities	39,273	290	2.95		38,510	243	2.50		763	45
Commercial and industrial	47,658	750	6.17		52,130	544	4.08		(4,472)	209
Commercial real estate	29,353	467	6.23		28,388	311	4.29		965	194
Leases	1,250	12	3.56		1,529	13	3.35		(279)	21
Total commercial	78,261	1,229	6.15		82,047	868	4.14		(3,786)	201
Residential mortgages	30,838	267	3.46		29,327	240	3.27		1,511	19
Home equity	14,589	286	7.77		13,400	156	4.62		1,189	315
Automobile	9,849	103	4.16		13,540	128	3.74		(3,691)	42
Education	12,147	156	5.11		13,081	144	4.37		(934)	74
Other retail	5,107	125	9.67		5,484	121	8.71		(377)	96
Total retail	72,530	937	5.14		74,832	789	4.19		(2,302)	95
Total loans and leases	150,791	2,166	5.66		156,879	1,657	4.17		(6,088)	149
Loans held for sale, at fair value	1,204	20	6.72		1,600	18	4.37		(396)	235
Other loans held for sale	321	8	9.01		1,385	15	4.36		(1,064)	465
Interest-earning assets	199,594	2,595	5.13		203,577	1,969	3.82		(3,983)	131
Noninterest-earning assets	20,568				21,896				(1,328)
Total assets	$220,162				$225,473				($5,311)
Liabilities and Stockholders’ Equity
Checking with interest	$33,545	$126	1.49	%	$38,297	$45	0.46	%	($4,752)	103
Money market	52,057	415	3.17		47,374	77	0.64		4,683	253
Savings	29,516	123	1.65		28,741	28	0.38		775	127
Term	21,604	234	4.29		9,913	26	1.10		11,691	319
Total interest-bearing deposits	136,722	898	2.60		124,325	176	0.56		12,397	204
Short-term borrowed funds	506	8	6.21		2,043	11	2.09		(1,537)	412
Long-term borrowed funds	13,202	167	5.02		15,847	117	2.91		(2,645)	211
Total borrowed funds	13,708	175	5.07		17,890	128	2.81		(4,182)	226
Total interest-bearing liabilities	150,430	1,073	2.83		142,215	304	0.85		8,215	198
Demand deposits	39,728				53,293				(13,565)
Other noninterest-bearing liabilities	6,813				5,705				1,108
Total liabilities	196,971				201,213				(4,242)
Stockholders’ equity	23,191				24,260				(1,069)
Total liabilities and stockholders’ equity	$220,162				$225,473				($5,311)
Interest rate spread			2.30	%			2.97	%		(67)
Net interest income and net interest margin		$1,522	3.03	%		$1,665	3.24	%		(21)
Net interest income and net interest margin, FTE(1)		$1,526	3.03	%		$1,668	3.25	%		(22)
Memo: Total deposits (interest-bearing and demand)	$176,450	$898	2.02	%	$177,618	$176	0.39	%	($1,168)	163	bps

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	Nine Months Ended September 30,
	2023				2022				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	$7,232	$280	5.10	%	$5,952	$53	1.19	%	$1,280	391 bps
Taxable investment securities	38,742	823	2.83		34,584	582	2.24		4,158	59
Non-taxable investment securities	2	—	2.68		3	—	2.31		(1)	37
Total investment securities	38,744	823	2.83		34,587	582	2.24		4,157	59
Commercial and industrial	49,791	2,250	5.96		49,224	1,290	3.45		567	251
Commercial real estate	29,122	1,328	6.01		23,401	644	3.63		5,721	238
Leases	1,345	36	3.52		1,555	34	2.92		(210)	60
Total commercial	80,258	3,614	5.94		74,180	1,968	3.50		6,078	244
Residential mortgages	30,496	776	3.39		27,113	630	3.10		3,383	29
Home equity	14,336	790	7.37		12,783	351	3.67		1,553	370
Automobile	10,920	335	4.11		14,078	382	3.63		(3,158)	48
Education	12,455	465	5.00		13,086	412	4.21		(631)	79
Other retail	5,184	365	9.41		5,490	332	8.08		(306)	133
Total retail	73,391	2,731	4.97		72,550	2,107	3.88		841	109
Total loans and leases	153,649	6,345	5.48		146,730	4,075	3.69		6,919	179
Loans held for sale, at fair value	1,199