EX-99.3 4 ex_993financialsupplement-.htm EX-99.3

Dollars in millions, except per share data
| Three Months Ended |  | Year Ended December 31,
Summary Financial Data & Key Metrics | December 31, 2023 | September 30, 2023 | December 31, 2022 |  | 2023 | 2022
Results of Operations: |  |  |  |  |  |
Net interest income | $ | 1,911 |  | $ | 1,990 |  | $ | 802 |  |  | $ | 6,712 |  | $ | 2,946 |
Provision for credit losses | 249 |  | 192 |  | 79 |  |  | 1,375 |  | 645 |
Net interest income after provision for credit losses | 1,662 |  | 1,798 |  | 723 |  |  | 5,337 |  | 2,301 |
Noninterest income | 543 |  | 615 |  | 429 |  |  | 12,075 |  | 2,136 |
Noninterest expense | 1,492 |  | 1,416 |  | 760 |  |  | 5,335 |  | 3,075 |
Income before income taxes | 713 |  | 997 |  | 392 |  |  | 12,077 |  | 1,362 |
Income tax expense | 199 |  | 245 |  | 135 |  |  | 611 |  | 264 |
Net income | 514 |  | 752 |  | 257 |  |  | 11,466 |  | 1,098 |
Preferred stock dividends | 15 |  | 15 |  | 14 |  |  | 59 |  | 50 |
Net income available to common stockholders | $ | 499 |  | $ | 737 |  | $ | 243 |  |  | $ | 11,407 |  | $ | 1,048 |
Adjusted net income available to common stockholders(1) | $ | 678 |  | $ | 813 |  | $ | 306 |  |  | $ | 2,548 |  | $ | 1,201 |
Pre-tax, pre-provision net revenue (PPNR)(1) | $ | 962 |  | $ | 1,189 |  | $ | 471 |  |  | $ | 13,452 |  | $ | 2,007 |
Per Share Information: |  |  |  |  |  |
Diluted earnings per common share (EPS) | $ | 34.33 |  | $ | 50.67 |  | $ | 16.67 |  |  | $ | 784.51 |  | $ | 67.40 |
Adjusted diluted earnings per common share (EPS)(1) | 46.58 |  | 55.92 |  | 20.94 |  |  | 175.22 |  | 77.24 |
Book value per common share at period end | 1,403.12 |  | 1,343.52 |  | 605.36 |  |  |  |
Tangible book value per common share (TBV)(1) at period end | 1,357.77 |  | 1,297.00 |  | 571.89 |  |  |  |
Key Performance Metrics: |  |  |  |  |  |
Return on average assets (ROA) | 0.95 | % | 1.41 | % | 0.93 | % |  | 5.90 | % | 1.01 | %
Adjusted ROA(1) | 1.28 |  | 1.55 |  | 1.15 |  |  | 1.34 |  | 1.15 |
PPNR ROA(1) | 1.78 |  | 2.23 |  | 1.70 |  |  | 6.92 |  | 1.84 |
Adjusted PPNR ROA(1) | 2.27 |  | 2.48 |  | 1.81 |  |  | 2.19 |  | 1.64 |
Return on average common equity (ROE) | 9.97 |  | 15.20 |  | 11.05 |  |  | 66.88 |  | 11.15 |
Adjusted ROE(1) | 13.53 |  | 16.77 |  | 13.89 |  |  | 14.94 |  | 12.78 |
Return on average tangible common equity (ROTCE)(1) | 10.32 |  | 15.76 |  | 11.70 |  |  | 69.50 |  | 11.78 |
Adjusted ROTCE(1) | 14.00 |  | 17.39 |  | 14.71 |  |  | 15.52 |  | 13.50 |
Efficiency ratio | 60.80 |  | 54.34 |  | 61.74 |  |  | 28.40 |  | 60.50 |
Adjusted efficiency ratio(1) | 48.00 |  | 46.04 |  | 54.08 |  |  | 49.33 |  | 56.40 |
Net interest margin (NIM)(2) | 3.86 |  | 4.07 |  | 3.39 |  |  | 3.92 |  | 3.16 |
Select Balance Sheet Items at Period End: |  |  |  |  |  |
Total investment securities | $ | 29,999 |  | $ | 26,818 |  | $ | 19,369 |  |  |  |
Total loans and leases | 133,302 |  | 133,202 |  | 70,781 |  |  |  |
Total operating lease equipment, net | 8,746 |  | 8,661 |  | 8,156 |  |  |  |
Total deposits | 145,854 |  | 146,233 |  | 89,408 |  |  |  |
Total borrowings | 37,654 |  | 37,712 |  | 6,645 |  |  |  |
Loan to deposit ratio | 91.39 | % | 91.09 | % | 79.17 | % |  |  |
Noninterest-bearing deposits to total deposits | 27.29 |  | 29.50 |  | 27.87 |  |  |  |
Capital Ratios at Period End: (3) |  |  |  |  |  |
Total risk-based capital ratio | 15.74 | % | 15.64 | % | 13.18 | % |  |  |
Tier 1 risk-based capital ratio | 13.94 |  | 13.83 |  | 11.06 |  |  |  |
Common equity Tier 1 ratio | 13.36 |  | 13.24 |  | 10.08 |  |  |  |
Tier 1 leverage capital ratio | 9.83 |  | 9.73 |  | 8.99 |  |  |  |
Asset Quality at Period End: |  |  |  |  |  |
Nonaccrual loans to total loans and leases | 0.73 | % | 0.68 | % | 0.89 | % |  |  |
Allowance for loan and lease losses (ALLL) to loans and leases | 1.31 |  | 1.26 |  | 1.30 |  |  |  |
Net charge-off ratio for the period | 0.53 |  | 0.53 |  | 0.14 |  |  | 0.47 |  | 0.12 |
(1) Denotes a non-GAAP measure. Refer to the non-GAAP reconciliation subsequently included in these materials for a reconciliation to the most directly comparable GAAP measure. “Adjusted” items exclude the impact of Notable Items.
(2) Calculated net of average credit balances and deposits of factoring clients. |  |  |  |  |  |
(3) Capital ratios as of the current quarter-end are preliminary pending completion of quarterly regulatory filings.

Dollars in millions, except share and per share data
|  | Three Months Ended |  | Year Ended December 31,
Income Statement (unaudited) |  | December 31, 2023 | September 30, 2023 | December 31, 2022 |  | 2023 | 2022
Interest income |  |  |  |  |  |  |
Interest and fees on loans |  | $ | 2,391 |  | $ | 2,426 |  | $ | 892 |  |  | $ | 8,187 |  | $ | 2,953 |
Interest on investment securities |  | 241 |  | 180 |  | 92 |  |  | 648 |  | 354 |
Interest on deposits at banks |  | 485 |  | 504 |  | 56 |  |  | 1,556 |  | 106 |
Total interest income |  | 3,117 |  | 3,110 |  | 1,040 |  |  | 10,391 |  | 3,413 |
Interest expense |  |  |  |  |  |  |
Deposits |  | 865 |  | 769 |  | 176 |  |  | 2,497 |  | 335 |
Borrowings |  | 341 |  | 351 |  | 62 |  |  | 1,182 |  | 132 |
Total interest expense |  | 1,206 |  | 1,120 |  | 238 |  |  | 3,679 |  | 467 |
Net interest income |  | 1,911 |  | 1,990 |  | 802 |  |  | 6,712 |  | 2,946 |
Provision for credit losses |  | 249 |  | 192 |  | 79 |  |  | 1,375 |  | 645 |
Net interest income after provision for credit losses |  | 1,662 |  | 1,798 |  | 723 |  |  | 5,337 |  | 2,301 |
Noninterest income |  |  |  |  |  |  |
Rental income on operating lease equipment |  | 252 |  | 248 |  | 224 |  |  | 971 |  | 864 |
Fee income and other service charges |  | 80 |  | 71 |  | 43 |  |  | 268 |  | 155 |
Client investment fees |  | 51 |  | 52 |  | — |  |  | 157 |  | — |
Wealth management services |  | 48 |  | 49 |  | 35 |  |  | 188 |  | 142 |
International fees |  | 30 |  | 30 |  | 3 |  |  | 93 |  | 10 |
Service charges on deposit accounts |  | 44 |  | 44 |  | 22 |  |  | 156 |  | 98 |
Factoring commissions |  | 22 |  | 21 |  | 26 |  |  | 82 |  | 104 |
Cardholder services, net |  | 36 |  | 41 |  | 26 |  |  | 139 |  | 102 |
Merchant services, net |  | 12 |  | 12 |  | 8 |  |  | 48 |  | 35 |
Insurance commissions |  | 14 |  | 13 |  | 13 |  |  | 54 |  | 47 |
Realized loss on sale of investment securities available for sale, net |  | — |  | (12) |  | — |  |  | (26) |  | — |
Fair value adjustment on marketable equity securities, net |  | 9 |  | (1) |  | 2 |  |  | (11) |  | (3) |
Bank-owned life insurance |  | — |  | 1 |  | 7 |  |  | 8 |  | 32 |
Gain on sale of leasing equipment, net |  | 2 |  | 10 |  | 2 |  |  | 20 |  | 15 |
Gain on acquisition |  | (83) |  | 12 |  | — |  |  | 9,808 |  | 431 |
Gain on extinguishment of debt |  | — |  | — |  | — |  |  | — |  | 7 |
Other noninterest income |  | 26 |  | 24 |  | 18 |  |  | 120 |  | 97 |
Total noninterest income |  | 543 |  | 615 |  | 429 |  |  | 12,075 |  | 2,136 |
Noninterest expense |  |  |  |  |  |  |
Depreciation on operating lease equipment |  | 96 |  | 95 |  | 88 |  |  | 371 |  | 345 |
Maintenance and other operating lease expenses |  | 59 |  | 51 |  | 47 |  |  | 222 |  | 189 |
Salaries and benefits |  | 714 |  | 727 |  | 354 |  |  | 2,636 |  | 1,408 |
Net occupancy expense |  | 65 |  | 65 |  | 48 |  |  | 244 |  | 191 |
Equipment expense |  | 114 |  | 117 |  | 55 |  |  | 422 |  | 216 |
Professional fees |  | 29 |  | 12 |  | 11 |  |  | 73 |  | 45 |
Third-party processing fees |  | 65 |  | 54 |  | 26 |  |  | 203 |  | 103 |
FDIC insurance expense |  | 82 |  | 36 |  | 5 |  |  | 158 |  | 31 |
Marketing expense |  | 24 |  | 22 |  | 21 |  |  | 102 |  | 53 |
Acquisition-related expenses |  | 116 |  | 121 |  | 29 |  |  | 470 |  | 231 |
Intangible asset amortization |  | 17 |  | 17 |  | 6 |  |  | 57 |  | 23 |
Other noninterest expense |  | 111 |  | 99 |  | 70 |  |  | 377 |  | 240 |
Total noninterest expense |  | 1,492 |  | 1,416 |  | 760 |  |  | 5,335 |  | 3,075 |
Income before income taxes |  | 713 |  | 997 |  | 392 |  |  | 12,077 |  | 1,362 |
Income tax expense |  | 199 |  | 245 |  | 135 |  |  | 611 |  | 264 |
Net income |  | $ | 514 |  | $ | 752 |  | $ | 257 |  |  | $ | 11,466 |  | $ | 1,098 |
Preferred stock dividends |  | 15 |  | 15 |  | 14 |  |  | 59 |  | 50 |
Net income available to common stockholders |  | $ | 499 |  | $ | 737 |  | $ | 243 |  |  | $ | 11,407 |  | $ | 1,048 |
Basic earnings per common share |  | $ | 34.36 |  | $ | 50.71 |  | $ | 16.69 |  |  | $ | 785.14 |  | $ | 67.47 |
Diluted earnings per common share |  | $ | 34.33 |  | $ | 50.67 |  | $ | 16.67 |  |  | $ | 784.51 |  | $ | 67.40 |
Weighted average common shares outstanding (basic) |  | 14,528,447 | 14,528,310 | 14,590,387 |  | 14,527,902 | 15,531,924
Weighted average common shares outstanding (diluted) |  | 14,539,838 | 14,539,133 | 14,607,426 |  | 14,539,613 | 15,549,944

Dollars in millions
Balance Sheet (unaudited) |  | December 31, 2023 | September 30, 2023 | December 31, 2022 |  |
Assets |  |  |  |  |  |
Cash and due from banks |  | $ | 908 |  | $ | 791 |  | $ | 518 |  |  |
Interest-earning deposits at banks |  | 33,609 |  | 36,704 |  | 5,025 |  |  |
Securities purchased under agreements to resell |  | 473 |  | 549 |  | — |  |  |
Investment in marketable equity securities |  | 84 |  | 75 |  | 95 |  |  |
Investment securities available for sale |  | 19,936 |  | 16,661 |  | 8,995 |  |  |
Investment securities held to maturity |  | 9,979 |  | 10,082 |  | 10,279 |  |  |
Assets held for sale |  | 76 |  | 58 |  | 60 |  |  |
Loans and leases |  | 133,302 |  | 133,202 |  | 70,781 |  |  |
Allowance for loan and lease losses |  | (1,747) |  | (1,673) |  | (922) |  |  |
Loans and leases, net of allowance for loan and lease losses |  | 131,555 |  | 131,529 |  | 69,859 |  |  |
Operating lease equipment, net |  | 8,746 |  | 8,661 |  | 8,156 |  |  |
Premises and equipment, net |  | 1,877 |  | 1,768 |  | 1,456 |  |  |
Goodwill |  | 346 |  | 346 |  | 346 |  |  |
Other intangible assets |  | 312 |  | 329 |  | 140 |  |  |
Other assets |  | 5,857 |  | 6,212 |  | 4,369 |  |  |
Total assets |  | $ | 213,758 |  | $ | 213,765 |  | $ | 109,298 |  |  |
Liabilities |  |  |  |  |  |
Deposits: |  |  |  |  |  |
Noninterest-bearing |  | $ | 39,799 |  | $ | 43,141 |  | $ | 24,922 |  |  |
Interest-bearing |  | 106,055 |  | 103,092 |  | 64,486 |  |  |
Total deposits |  | 145,854 |  | 146,233 |  | 89,408 |  |  |
Credit balances of factoring clients |  | 1,089 |  | 1,282 |  | 995 |  |  |
Borrowings: |  |  |  |  |  |
Short-term borrowings |  | 485 |  | 453 |  | 2,186 |  |  |
Long-term borrowings |  | 37,169 |  | 37,259 |  | 4,459 |  |  |
Total borrowings |  | 37,654 |  | 37,712 |  | 6,645 |  |  |
Other liabilities |  | 7,906 |  | 8,149 |  | 2,588 |  |  |
Total liabilities |  | $ | 192,503 |  | $ | 193,376 |  | $ | 99,636 |  |  |
Stockholders’ equity |  |  |  |  |  |
Preferred stock |  | 881 | 881 |  | 881 |  |  |
Common stock: |  |  |  |  |  |
Class A - $1 par value |  | 14 |  | 14 |  | 14 |  |
Class B - $1 par value |  | 1 |  | 1 |  | 1 |  |  |
Additional paid in capital |  | 4,108 |  | 4,106 |  | 4,109 |  |  |
Retained earnings |  | 16,742 |  | 16,267 |  | 5,392 |  |  |
Accumulated other comprehensive loss |  | (491) |  | (880) |  | (735) |  |  |
Total stockholders’ equity |  | 21,255 |  | 20,389 |  | 9,662 |  |  |
Total liabilities and stockholders’ equity |  | $ | 213,758 |  | $ | 213,765 |  | $ | 109,298 |  |  |

Dollars in millions, except share per share data
Notable Items (1) |  | Three Months Ended |  |  | Year Ended December 31, |
| December 31, 2023 | September 30, 2023 | December 31, 2022 |  |  | 2023 | 2022 |
Noninterest income |  |  |  |  |  |  |  |  |
Rental income on operating lease equipment (2) |  | $ | (155) |  | $ | (146) |  | $ | (135) |  |  |  | $ | (593) |  | $ | (534) |  |
Realized loss on sale of investment securities available for sale, net |  | — |  | 12 |  | — |  |  |  | 26 |  | — |  |
Fair value adjustment on marketable equity securities, net |  | (9) |  | 1 |  | (2) |  |  |  | 11 |  | 3 |  |
Gain on sale of leasing equipment, net |  | (2) |  | (10) |  | (2) |  |  |  | (20) |  | (15) |  |
Gain on acquisition |  | 83 |  | (12) |  | — |  |  |  | (9,808) |  | (431) |  |
Gain on extinguishment of debt |  | — |  | — |  | — |  |  |  | — |  | (7) |  |
Other noninterest income (3) |  | (5) |  | 8 |  | — |  |  |  | 3 |  | (11) |  |
Impact of notable items on adjusted noninterest income |  | $ | (88) |  | $ | (147) |  | $ | (139) |  |  |  | $ | (10,381) |  | $ | (995) |  |
Noninterest expense |  |  |  |  |  |  |  |  |
Depreciation on operating lease equipment (2) |  | (96) |  | (95) |  | (88) |  |  |  | (371) |  | (345) |  |
Maintenance and other operating lease equipment expense (2) |  | (59) |  | (51) |  | (47) |  |  |  | (222) |  | (189) |  |
Professional fees (4) |  | (5) |  | — |  | — |  |  |  | (5) |  | — |  |
FDIC insurance special assessment |  | (64) |  | — |  | — |  |  |  | (64) |  | — |  |
Acquisition-related expenses |  | (116) |  | (121) |  | (29) |  |  |  | (470) |  | (231) |  |
Intangible asset amortization |  | (17) |  | (17) |  | (6) |  |  |  | (57) |  | (23) |  |
Other noninterest expense (5) |  | — |  | — |  | — |  |  |  | — |  | 18 |  |
Impact of notable items on adjusted noninterest expense |  | $ | (357) |  | $ | (284) |  | $ | (170) |  |  |  | $ | (1,189) |  | $ | (770) |  |
Day 2 provision for loan and lease losses and off-balance sheet exposure |  | $ | — |  | $ | — |  | $ | — |  |  |  | $ | (716) |  | $ | (513) |  |
Benefit for credit losses on investment securities available for sale |  | — |  | 3 |  | — |  |  |  | — |  | — |  |
Impact of notable items on adjusted provision for credit losses |  | $ | — |  | $ | 3 |  | $ | — |  |  |  | $ | (716) |  | $ | (513) |  |
Impact of notable items on adjusted pre-tax income |  | $ | 269 |  | $ | 134 |  | $ | 31 |  |  |  | $ | (8,476) |  | $ | 288 |  |
Income tax impact (6) |  | 90 | 58 |  | (32) |  |  |  | 383 |  | 135 |  |
Impact of notable items on adjusted net income |  | $ | 179 |  | $ | 76 |  | $ | 63 |  |  |  | $ | (8,859) |  | $ | 153 |  |
Impact of notable items on adjusted diluted EPS |  | $ | 12.25 |  | $ | 5.25 |  | $ | 4.27 |  |  |  | $ | (609.29) |  | $ | 9.84 |  |

(1) Notable items include income and expense for infrequent transactions and certain recurring items (typically noncash) that management believes should be excluded from adjusted measures (Non-GAAP) to enhance understanding of operations and comparability to historical periods. Management utilizes both GAAP and adjusted measures (Non-GAAP) to analyze the Company’s performance. Refer to subsequent pages of this financial supplement for a reconciliation of Non-GAAP measures to the most directly comparable GAAP measures.
(2) Depreciation and maintenance and other operating lease expenses are reclassified from noninterest expense to a reduction of rental income on operating lease equipment. There is no net impact to earnings for this notable item as adjusted noninterest income and expense are reduced by the same amount. Adjusted rental income on operating lease equipment (Non-GAAP) is net of depreciation and maintenance expense for operating lease equipment. Management believes this measure enhances comparability to banking peers, primarily due to the extent of our rail and other equipment rental activities. Refer to subsequent pages of this financial supplement for a reconciliation of Non-GAAP measures to the most directly comparable GAAP measure.
(3) Notable items included in other noninterest income consist of a gain on sale of insurance accounts in 4Q23 and a measurement period adjustment related to FX translation in 3Q23. YTD22 notable items consist of a railcar lease settlement and a gain on sale of the corporate jet.
(4) Professional fees related to other integration.
(5) Notable items included in other noninterest expense consist of an impairment on corporate real estate and the termination of legacy CIT post-retirement plans in YTD22.
(6) For the periods presented, the income tax impact may include tax discrete items and changes in the estimated annualized effective tax rate.

Dollars in millions, except share and per share data
Condensed Income Statements (unaudited) - Adjusted for Notable Items (1) |  | Three Months Ended |  | Year Ended December 31, |
| December 31, 2023 | September 30, 2023 |  | December 31, 2022 |  | 2023 | 2022 |
Interest income |  | $ | 3,117 |  | $ | 3,110 |  |  | $ | 1,040 |  |  | $ | 10,391 |  | $ | 3,413 |  |
Interest expense |  | 1,206 |  | 1,120 |  |  | 238 |  |  | 3,679 |  | 467 |  |
Net interest income |  | 1,911 |  | 1,990 |  |  | 802 |  |  | 6,712 |  | 2,946 |  |
Provision for credit losses |  | 249 |  | 195 |  |  | 79 |  |  | 659 |  | 132 |  |
Net interest income after provision for credit losses |  | 1,662 |  | 1,795 |  |  | 723 |  |  | 6,053 |  | 2,814 |  |
Noninterest income |  | 455 |  | 468 |  |  | 290 |  |  | 1,694 |  | 1,141 |  |
Noninterest expense |  | 1,135 |  | 1,132 |  |  | 590 |  |  | 4,146 |  | 2,305 |  |
Income before income taxes |  | 982 |  | 1,131 |  |  | 423 |  |  | 3,601 |  | 1,650 |  |
Income tax expense |  | 289 |  | 303 |  |  | 103 |  |  | 994 |  | 399 |  |
Net income |  | $ | 693 |  | $ | 828 |  |  | $ | 320 |  |  | $ | 2,607 |  | $ | 1,251 |  |
Preferred stock dividends |  | 15 |  | 15 |  |  | 14 |  |  | 59 |  | 50 |  |
Net income available to common stockholders |  | $ | 678 |  | $ | 813 |  |  | $ | 306 |  |  | $ | 2,548 |  | $ | 1,201 |  |
Basic earnings per common share |  | $ | 46.62 |  | $ | 55.96 |  |  | $ | 20.97 |  |  | $ | 175.37 |  | $ | 77.33 |  |
Diluted earnings per common share |  | 46.58 |  | 55.92 |  |  | 20.94 |  |  | 175.22 | 77.24 |
Weighted average common shares outstanding (basic) |  | 14,528,447 | 14,528,310 |  | 14,590,387 |  | 14,527,902 | 15,531,924 |
Weighted average common shares outstanding (diluted) |  | 14,539,838 | 14,539,133 |  | 14,607,426 |  | 14,539,613 | 15,549,944 |

(1) The GAAP income statements and notable items are included previously in this financial supplement. The condensed adjusted income statements above (Non-GAAP) exclude the impacts of notable items. Refer to the Non-GAAP reconciliation table(s) at the end of this financial supplement for a reconciliation of Non-GAAP measures to the most directly comparable GAAP measure.

Dollars in millions
Loans and Leases by Class (end of period) |  | December 31, 2023 | September 30, 2023 | December 31, 2022 |  |  |
Loans and Leases by Class |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |
Commercial construction |  | $ | 3,465 |  | $ | 3,382 |  | $ | 2,804 |  |  |  |
Owner-occupied commercial mortgages |  | 15,567 |  | 15,230 |  | 14,473 |  |  |  |
Non-owner-occupied commercial mortgages |  | 11,540 |  | 10,941 |  | 9,902 |  |  |  |
Commercial and industrial |  | 27,072 |  | 26,389 |  | 24,105 |  |  |  |
Leases |  | 2,054 |  | 2,108 |  | 2,171 |  |  |  |
Total commercial |  | $ | 59,698 |  | $ | 58,050 |  | $ | 53,455 |  |  |  |
Consumer |  |  |  |  |  |  |
Residential mortgage |  | $ | 14,422 |  | $ | 14,287 |  | $ | 13,309 |  |  |  |
Revolving mortgage |  | 2,007 |  | 1,909 |  | 1,951 |  |  |  |
Consumer auto |  | 1,442 |  | 1,411 |  | 1,414 |  |  |  |
Consumer other |  | 720 |  | 681 |  | 652 |  |  |  |
Total consumer |  | $ | 18,591 |  | $ | 18,288 |  | $ | 17,326 |  |  |  |
SVB |  |  |  |  |  |  |
Global fund banking |  | $ | 25,553 |  | $ | 27,516 |  | $ | — |  |  |  |
Investor dependent - early stage |  | 1,403 |  | 1,718 |  | — |  |  |  |
Investor dependent - growth stage |  | 2,897 |  | 3,948 |  | — |  |  |  |
Innovation C&I and cash flow dependent |  | 9,658 |  | 8,724 |  | — |  |  |  |
Private Bank |  | 9,822 |  | 9,648 |  | — |  |  |  |
CRE |  | 2,698 |  | 2,629 |  | — |  |  |  |
Other |  | 2,982 |  | 2,681 |  | — |  |  |  |
Total SVB |  | $ | 55,013 |  | $ | 56,864 |  | $ | — |  |  |  |
Total loans and leases |  | $ | 133,302 |  | $ | 133,202 |  | $ | 70,781 |  |  |  |
Less: allowance for loan and lease losses |  | (1,747) |  | (1,673) |  | (922) |  |  |  |
Total loans and leases, net of allowance for loan and lease losses |  | $ | 131,555 |  | $ | 131,529 |  | $ | 69,859 |  |  |  |
Deposits by Type (end of period) |  | December 31, 2023 | September 30, 2023 | December 31, 2022 |  |  |
Demand |  | $ | 39,799 |  | $ | 43,141 |  | $ | 24,922 |  |  |  |
Checking with interest |  | 23,754 |  | 23,461 |  | 16,202 |  |  |  |
Money market |  | 30,616 |  | 30,082 |  | 21,040 |  |  |  |
Savings |  | 35,258 |  | 32,708 |  | 16,834 |  |  |  |
Time |  | 16,427 |  | 16,841 |  | 10,410 |  |  |  |
Total deposits |  | $ | 145,854 |  | $ | 146,233 |  | $ | 89,408 |  |  |  |

Dollars in millions
|  |  |  |  | Three Months Ended |  | Year Ended December 31,
Credit Quality and Allowance for Loan and Lease Losses |  |  |  |  | December 31, 2023 | September 30, 2023 | December 31, 2022 |  | 2023 | 2022
Nonaccrual loans at period end |  |  |  |  | $ | 969 |  | $ | 899 |  | $ | 627 |  |  |  |
Ratio of nonaccrual loans to total loans at period end |  |  |  |  | 0.73 | % | 0.68 | % | 0.89 | % |  |  |
Charge-offs |  |  |  |  | $ | (201) |  | $ | (199) |  | $ | (39) |  |  | $ | (638) |  | $ | (146) |
Recoveries |  |  |  |  | 24 |  | 23 |  | 15 |  |  | 78 |  | 67 |
Net charge-offs |  |  |  |  | $ | (177) |  | $ | (176) |  | $ | (24) |  |  | $ | (560) |  | $ | (79) |
Net charge-off ratio |  |  |  |  | 0.53 | % | 0.53 | % | 0.14 | % |  | 0.47 | % | 0.12 | %
Allowance for loan and lease losses to loans ratio at period end |  |  |  |  | 1.31 | % | 1.26 | % | 1.30 | % |  |  |
Allowance for loan and lease losses at beginning of period |  |  |  |  | $ | 1,673 |  | $ | 1,637 |  | $ | 882 |  |  | $ | 922 |  | $ | 178 |
Initial PCD ALLL |  |  |  |  | — |  | — |  | — |  |  | 220 |  | 272 |
Day 2 provision for loan and lease losses |  |  |  |  | — |  | — |  | — |  |  | 462 |  | 454 |
Provision for loan and lease losses |  |  |  |  | 251 |  | 212 |  | 64 |  |  | 703 |  | 97 |
Net charge-offs |  |  |  |  | (177) |  | (176) |  | (24) |  |  | (560) |  | (79) |
Allowance for loan and lease losses at end of period |  |  |  |  | $ | 1,747 |  | $ | 1,673 |  | $ | 922 |  |  | $ | 1,747 |  | $ | 922 |

Dollars in millions | Three Months Ended |
Average Balance Sheets, Yields and Rates | December 31, 2023 | September 30, 2023 | December 31, 2022 |
Average Balance | Income/Expense | Yield/Rate | Average Balance | Income/Expense | Yield/Rate | Average Balance | Income/Expense | Yield/Rate |  |  |
Loans and leases (1)(2) | $ | 131,594 |  | $ | 2,391 |  | 7.21 | % | $ | 131,653 |  | $ | 2,426 |  | 7.30 | % | $ | 68,949 |  | $ | 892 |  | 5.14 | % |  |  |
Investment securities | 28,722 |  | 239 |  | 3.30 |  | 24,388 |  | 177 |  | 2.90 |  | 18,876 |  | 92 |  | 1.95 |  |  |  |
Securities purchased under agreements to resell | 225 |  | 2 |  | 5.36 |  | 223 |  | 3 |  | 5.28 |  | — |  | — |  | — |  |  |  |
Interest-earning deposits at banks | 35,712 |  | 485 |  | 5.39 |  | 37,456 |  | 504 |  | 5.34 |  | 6,193 |  | 56 |  | 3.60 |  |  |  |
Total interest-earning assets (2) | $ | 196,253 |  | $ | 3,117 |  | 6.30 | % | $ | 193,720 |  | $ | 3,110 |  | 6.37 | % | $ | 94,018 |  | $ | 1,040 |  | 4.40 | % |  |  |
Operating lease equipment, net | $ | 8,715 |  |  |  | $ | 8,617 |  |  |  | $ | 8,049 |  |  |  |  |  |
Cash and due from banks | 846 |  |  |  | 911 |  |  |  | 500 |  |  |  |  |  |
Allowance for loan and lease losses | (1,717) |  |  |  | (1,714) |  |  |  | (886) |  |  |  |  |  |
All other noninterest-earning assets | 10,515 |  |  |  | 10,460 |  |  |  | 8,093 |  |  |  |  |  |
Total assets | $ | 214,612 |  |  |  | $ | 211,994 |  |  |  | $ | 109,774 |  |  |  |  |  |
Interest-bearing deposits |  |  |  |  |  |  |  |  |  |  |  |
Checking with interest | $ | 23,820 |  | $ | 128 |  | 2.14 | % | $ | 24,600 |  | $ | 134 |  | 2.15 | % | $ | 15,985 |  | $ | 13 |  | 0.31 | % |  |  |
Money Market | 30,178 |  | 211 |  | 2.77 |  | 29,684 |  | 179 |  | 2.40 |  | 21,200 |  | 60 |  | 1.13 |  |  |  |
Savings | 34,166 |  | 362 |  | 4.20 |  | 30,185 |  | 303 |  | 3.99 |  | 16,030 |  | 69 |  | 1.71 |  |  |  |
Time deposits | 16,553 |  | 164 |  | 3.94 |  | 16,489 |  | 153 |  | 3.68 |  | 9,317 |  | 34 |  | 1.45 |  |  |  |
Total interest-bearing deposits | 104,717 |  | 865 |  | 3.28 |  | 100,958 |  | 769 |  | 3.02 |  | 62,532 |  | 176 |  | 1.12 |  |  |  |
Borrowings: |  |  |  |  |  |  |  |  |  |  |  |
Securities sold under customer repurchase agreements | 455 |  | 1 |  | 0.44 |  | 454 |  | — |  | 0.35 |  | 514 |  | — |  | 0.27 |  |  |  |
Short-term FHLB borrowings | — |  | — |  | — |  | — |  | — |  | — |  | 2,080 |  | 20 |  | 3.77 |  |  |  |
Short-term borrowings | 455 |  | 1 |  | 0.44 |  | 454 |  | — |  | 0.35 |  | 2,594 |  | 20 |  | 3.08 |  |  |  |
Federal Home Loan Bank borrowings | — |  | — |  | 1.99 |  | 444 |  | 6 |  | 5.47 |  | 2,818 |  | 28 |  | 3.90 |  |  |  |
Senior unsecured borrowings | 377 |  | 3 |  | 2.46 |  | 382 |  | 2 |  | 2.46 |  | 906 |  | 4 |  | 2.08 |  |  |  |
Subordinated debt | 1,038 |  | 10 |  | 3.82 |  | 1,042 |  | 10 |  | 3.65 |  | 1,051 |  | 9 |  | 3.38 |  |  |  |
Other borrowings | 35,845 |  | 327 |  | 3.65 |  | 35,831 |  | 333 |  | 3.71 |  | 25 |  | 1 |  | 6.57 |  |  |  |
Long-term borrowings | 37,260 |  | 340 |  | 3.65 |  | 37,699 |  | 351 |  | 3.72 |  | 4,800 |  | 42 |  | 3.46 |  |  |  |
Total borrowings | 37,715 |  | 341 |  | 3.61 |  | 38,153 |  | 351 |  | 3.68 |  | 7,394 |  | 62 |  | 3.32 |  |  |  |
Total interest-bearing liabilities | $ | 142,432 |  | $ | 1,206 |  | 3.37 | % | $ | 139,111 |  | $ | 1,120 |  | 3.20 | % | $ | 69,926 |  | $ | 238 |  | 1.35 | % |  |  |
Noninterest-bearing deposits | $ | 41,599 |  |  |  | $ | 43,085 |  |  |  | $ | 26,510 |  |  |  |  |  |
Credit balances of factoring clients | 1,275 |  |  |  | 1,209 |  |  |  | 1,174 |  |  |  |  |  |
Other noninterest-bearing liabilities | 8,566 |  |  |  | 8,473 |  |  |  | 2,543 |  |  |  |  |  |
Stockholders' equity | 20,740 |  |  |  | 20,116 |  |  |  | 9,621 |  |  |  |  |  |
Total liabilities and stockholders’ equity | $ | 214,612 |  |  |  | $ | 211,994 |  |  |  | $ | 109,774 |  |  |  |  |  |
Net interest income |  | $ | 1,911 |  |  |  | $ | 1,990 |  |  |  | $ | 802 |  |  |  |  |
Net interest spread (2) |  |  | 2.93 | % |  |  | 3.17 | % |  |  | 3.05 | % |  |  |
Net interest margin (2) |  |  | 3.86 | % |  |  | 4.07 | % |  |  | 3.39 | % |  |  |
(1) Loans and leases include non-PCD and PCD loans, nonaccrual loans, and loans held for sale. Interest income on loans and leases includes accretion income and loan fees. |  |  |
(2) The balance and rate presented is calculated net of average credit balances and deposits of factoring clients. |  |  |
Note: Certain items above do not precisely recalculate as presented due to rounding. |  |  |  |

Dollars in millions | Twelve Months Ended
Average Balance Sheets, Yields and Rates | December 31, 2023 |  | December 31, 2022
Average Balance | Income/Expense | Yield/Rate |  |  |  | Average Balance | Income/Expense | Yield/Rate
Loans and leases (1)(2) | $ | 117,708 |  | $ | 8,187 |  | 6.95 | % |  |  |  | $ | 66,303 |  | $ | 2,953 |  | 4.45 | %
Investment securities | 23,112 |  | 640 |  | 2.77 |  |  |  |  | 19,166 |  | 354 |  | 1.85 |
Securities purchased under agreements to resell | 161 |  | 8 |  | 5.20 |  |  |  |  | — |  | — |  | — |
Interest-earning deposits at banks | 29,790 |  | 1,556 |  | 5.22 |  |  |  |  | 7,726 |  | 106 |  | 1.38 |
Total interest-earning assets (2) | $ | 170,771 |  | $ | 10,391 |  | 6.08 | % |  |  |  | $ | 93,195 |  | $ | 3,413 |  | 3.66 | %
Operating lease equipment, net | $ | 8,495 |  |  |  |  |  |  | $ | 7,982 |  |  |
Cash and due from banks | 879 |  |  |  |  |  |  | 512 |  |  |
Allowance for loan and lease losses | (1,495) |  |  |  |  |  |  | (875) |  |  |
All other noninterest-earning assets | 15,631 |  |  |  |  |  |  | 8,101 |  |  |
Total assets | $ | 194,281 |  |  |  |  |  |  | $ | 108,915 |  |  |
Interest-bearing deposits |  |  |  |  |  |  |  |  |
Checking with interest | $ | 22,296 |  | $ | 402 |  | 1.80 | % |  |  |  | $ | 16,323 |  | $ | 29 |  | 0.18 | %
Money Market | 27,567 |  | 618 |  | 2.24 |  |  |  |  | 23,949 |  | 125 |  | 0.52 |
Savings | 26,121 |  | 963 |  | 3.69 |  |  |  |  | 14,392 |  | 117 |  | 0.81 |
Time deposits | 14,946 |  | 514 |  | 3.44 |  |  |  |  | 8,934 |  | 64 |  | 0.72 |
Total interest-bearing deposits | 90,930 |  | 2,497 |  | 2.75 |  |  |  |  | 63,598 |  | 335 |  | 0.53 |
Borrowings: |  |  |  |  |  |  |  |  |
Securities sold under customer repurchase agreements | 455 |  | 2 |  | 0.35 |  |  |  |  | 590 |  | 1 |  | 0.19 |
Short-term FHLB borrowings | 108 |  | 5 |  | 4.79 |  |  |  |  | 824 |  | 28 |  | 3.35 |
Short-term borrowings | 563 |  | 7 |  | 1.20 |  |  |  |  | 1,414 |  | 29 |  | 2.03 |
Federal Home Loan Bank borrowings | 2,307 |  | 120 |  | 5.22 |  |  |  |  | 1,414 |  | 43 |  | 3.01 |
Senior unsecured borrowings | 608 |  | 14 |  | 2.21 |  |  |  |  | 1,348 |  | 25 |  | 1.89 |
Subordinated debt | 1,043 |  | 39 |  | 3.65 |  |  |  |  | 1,056 |  | 33 |  | 3.15 |
Other borrowings | 27,322 |  | 1,002 |  | 3.67 |  |  |  |  | 64 |  | 2 |  | 3.22 |
Long-term borrowings | 31,280 |  | 1,175 |  | 3.75 |  |  |  |  | 3,882 |  | 103 |  | 2.66 |
Total borrowings | 31,843 |  | 1,182 |  | 3.71 |  |  |  |  | 5,296 |  | 132 |  | 2.49 |
Total interest-bearing liabilities | $ | 122,773 |  | $ | 3,679 |  | 3.00 | % |  |  |  | $ | 68,894 |  | $ | 467 |  | 0.68 | %
Noninterest-bearing deposits | $ | 39,660 |  |  |  |  |  |  | $ | 26,318 |  |  |
Credit balances of factoring clients | 1,166 |  |  |  |  |  |  | 1,153 |  |  |
Other noninterest-bearing liabilities | 12,745 |  |  |  |  |  |  | 2,274 |  |  |
Stockholders' equity | 17,937 |  |  |  |  |  |  | 10,276 |  |  |
Total liabilities and stockholders’ equity | $ | 194,281 |  |  |  |  |  |  | $ | 108,915 |  |  |
Net interest income |  | $ | 6,712 |  |  |  |  |  |  | $ | 2,946 |  |
Net interest spread (2) |  |  | 3.08 | % |  |  |  |  |  | 2.98 | %
Net interest margin (2) |  |  | 3.92 | % |  |  |  |  |  | 3.16 | %
(1) Loans and leases include non-PCD and PCD loans, nonaccrual loans, and loans held for sale. Interest income on loans and leases includes accretion income and loan fees.
(2) The balance and rate presented is calculated net of average credit balances and deposits of factoring clients.
Note: Certain items above do not precisely recalculate as presented due to rounding. |

Dollars in millions, except share and per share data
|  | Three Months Ended |  | Year Ended December 31,
Non-GAAP Reconciliations |  | December 31, 2023 | September 30, 2023 | December 31, 2022 |  | 2023 | 2022
Net income and EPS |  |  |  |  |  |  |
Net income (GAAP) | a | $ | 514 |  | $ | 752 |  | $ | 257 |  |  | $ | 11,466 |  | $ | 1,098 |
Preferred stock dividends |  | 15 |  | 15 |  | 14 |  |  | 59 |  | 50 |
Net income available to common stockholders (GAAP) | b | 499 |  | 737 |  | 243 |  |  | 11,407 |  | 1,048 |
Total notable items, after income tax | c | 179 |  | 76 |  | 63 |  |  | (8,859) |  | 153 |
Adjusted net income (non-GAAP) | d = (a+c) | 693 |  | 828 |  | 320 |  |  | 2,607 |  | 1,251 |
Adjusted net income available to common stockholders (non-GAAP) | e = (b+c) | $ | 678 |  | $ | 813 |  | $ | 306 |  |  | $ | 2,548 |  | $ | 1,201 |
Weighted average common shares outstanding |  |  |  |  |  |  |
Basic | f | 14,528,447 |  | 14,528,310 |  | 14,590,387 |  |  | 14,527,902 |  | 15,531,924 |
Diluted | g | 14,539,838 |  | 14,539,133 |  | 14,607,426 |  |  | 14,539,613 |  | 15,549,944 |
EPS (GAAP) |  |  |  |  |  |  |
Basic | b/f | $ | 34.36 |  | $ | 50.71 |  | $ | 16.69 |  |  | $ | 785.14 |  | $ | 67.47 |
Diluted | b/g | 34.33 |  | 50.67 |  | 16.67 |  |  | 784.51 |  | 67.40 |
Adjusted EPS (non-GAAP) |  |  |  |  |  |  |
Basic | e/f | $ | 46.62 |  | $ | 55.96 |  | $ | 20.97 |  |  | $ | 175.37 |  | $ | 77.33 |
Diluted | e/g | 46.58 |  | 55.92 |  | 20.94 |  |  | 175.22 |  | 77.24 |
Noninterest income and expense |  |  |  |  |  |  |
Noninterest income | h | $ | 543 |  | $ | 615 |  | $ | 429 |  |  | $ | 12,075 |  | $ | 2,136 |
Impact of notable items, before income tax |  | (88) |  | (147) |  | (139) |  |  | (10,381) |  | (995) |
Adjusted noninterest income (non-GAAP) | i | $ | 455 |  | $ | 468 |  | $ | 290 |  |  | $ | 1,694 |  | $ | 1,141 |
Noninterest expense | j | $ | 1,492 |  | $ | 1,416 |  | $ | 760 |  |  | $ | 5,335 |  | $ | 3,075 |
Impact of notable items, before income tax |  | (357) |  | (284) |  | (170) |  |  | (1,189) |  | (770) |
Adjusted noninterest expense (non-GAAP) | k | $ | 1,135 |  | $ | 1,132 |  | $ | 590 |  |  | $ | 4,146 |  | $ | 2,305 |
Provision for credit losses |  |  |  |  |  |  |
Provision for credit losses |  | $ | 249 |  | $ | 192 |  | $ | 79 |  |  | $ | 1,375 |  | $ | 645 |
Less: day 2 provision for loan and lease losses and off-balance sheet exposure |  | — |  | — |  | — |  |  | 716 |  | 513 |
Plus: benefit for credit losses on investment securities available for sale |  | — |  | 3 |  | — |  |  | — |  | — |
Adjusted provision for credit losses (non-GAAP) |  | $ | 249 |  | $ | 195 |  | $ | 79 |  |  | $ | 659 |  | $ | 132 |
PPNR |  |  |  |  |  |  |
Net income (GAAP) | a | $ | 514 |  | $ | 752 |  | $ | 257 |  |  | $ | 11,466 |  | $ | 1,098 |
Plus: |  |  |  |  |  |  |
Provision for credit losses |  | 249 |  | 192 |  | 79 |  |  | 1,375 |  | 645 |
Income tax expense |  | 199 |  | 245 |  | 135 |  |  | 611 |  | 264 |
PPNR (non-GAAP) | l | $ | 962 |  | $ | 1,189 |  | $ | 471 |  |  | $ | 13,452 |  | $ | 2,007 |
Impact of notable items (1) |  | 269 |  | 137 |  | 31 |  |  | (9,192) |  | (225) |
Adjusted PPNR (non-GAAP) | m | $ | 1,231 |  | $ | 1,326 |  | $ | 502 |  |  | $ | 4,260 |  | $ | 1,782 |
(1) Excludes the notable items for the provision for credit losses and income taxes as these items are excluded from PPNR as presented in the table above.
Note: Certain items above do not precisely recalculate as presented due to rounding.

Dollars in millions, except share and per share data
|  | Three Months Ended |  | Year Ended December 31,
Non-GAAP Reconciliations (continued) |  | December 31, 2023 | September 30, 2023 | December 31, 2022 |  | 2023 | 2022
ROA |  |  |  |  |  |  |
Net income (GAAP) | a | $ | 514 |  | $ | 752 |  | $ | 257 |  |  | $ | 11,466 |  | $ | 1,098 |
Annualized net income | n = a annualized | 2,041 |  | 2,983 |  | 1,019 |  |  | 11,466 |  | 1,098 |
Adjusted net income (non-GAAP) | d | 693 |  | 828 |  | 320 |  |  | 2,607 |  | 1,251 |
Annualized adjusted net income | p = d annualized | 2,748 |  | 3,286 |  | 1,269 |  |  | 2,607 |  | 1,251 |
Average assets | o | 214,612 |  | 211,994 |  | 109,774 |  |  | 194,281 | 108,915
ROA | n/o | 0.95 | % | 1.41 | % | 0.93 | % |  | 5.90 | % | 1.01 | %
Adjusted ROA (non-GAAP) | p/o | 1.28 |  | 1.55 |  | 1.15 |  |  | 1.34 |  | 1.15 |
PPNR ROA |  |  |  |  |  |  |
PPNR (non-GAAP) | l | $ | 962 |  | $ | 1,189 |  | $ | 471 |  |  | $ | 13,452 |  | $ | 2,007 |
Annualized PPNR | q = l annualized | 3,818 |  | 4,717 |  | 1,868 |  |  | 13,452 |  | 2,007 |
Adjusted PPNR (non-GAAP) | m | 1,231 |  | 1,326 |  | 502 |  |  | 4,260 |  | 1,782 |
Annualized adjusted PPNR | r = m annualized | 4,882 |  | 5,261 |  | 1,990 |  |  | 4,260 |  | 1,782 |
PPNR ROA | q/o | 1.78 | % | 2.23 | % | 1.70 | % |  | 6.92 | % | 1.84 | %
Adjusted PPNR ROA (non-GAAP) | r/o | 2.27 |  | 2.48 |  | 1.81 |  |  | 2.19 |  | 1.64 |
ROE and ROTCE |  |  |  |  |  |  |
Annualized net income available to common stockholders | s = b annualized | $ | 1,980 |  | $ | 2,923 |  | $ | 966 |  |  | $ | 11,407 |  | $ | 1,048 |
Annualized adjusted net income available to common stockholders | t = e annualized | $ | 2,687 |  | $ | 3,225 |  | $ | 1,216 |  |  | $ | 2,548 |  | $ | 1,201 |
Average stockholders' equity (GAAP) |  | $ | 20,740 |  | $ | 20,116 |  | $ | 9,621 |  |  | $ | 17,937 |  | $ | 10,276 |
Less: average preferred stock |  | 881 |  | 881 |  | 881 |  |  | 881 |  | 878 |
Average common stockholders' equity (non-GAAP) | u | $ | 19,859 |  | $ | 19,235 |  | $ | 8,740 |  |  | $ | 17,056 |  | $ | 9,398 |
Less: average goodwill |  | 346 |  | 346 |  | 346 |  |  | 346 |  | 346 |
Less: average other intangible assets |  | 322 |  | 338 |  | 143 |  |  | 298 |  | 157 |
Average tangible common equity (non-GAAP) | v | $ | 19,191 |  | $ | 18,551 |  | $ | 8,251 |  |  | $ | 16,412 |  | $ | 8,895 |
ROE | s/u | 9.97 | % | 15.20 | % | 11.05 | % |  | 66.88 | % | 11.15 | %
Adjusted ROE (non-GAAP) | t/u | 13.53 |  | 16.77 |  | 13.89 |  |  | 14.94 |  | 12.78 |
ROTCE | s/v | 10.32 |  | 15.76 |  | 11.70 |  |  | 69.50 |  | 11.78 |
Adjusted ROTCE (non-GAAP) | t/v | 14.00 |  | 17.39 |  | 14.71 |  |  | 15.52 |  | 13.50 |
Tangible common equity to tangible assets at period end |  |  |  |  |  |  |
Stockholders' equity (GAAP) | w | $ | 21,255 |  | $ | 20,389 |  | $ | 9,662 |  |  |  |
Less: preferred stock |  | 881 |  | 881 |  | 881 |  |  |  |
Common equity (non-GAAP) | x | $ | 20,374 |  | $ | 19,508 |  | $ | 8,781 |  |  |  |
Less: goodwill |  | 346 |  | 346 |  | 346 |  |  |  |
Less: other intangible assets |  | 312 |  | 329 |  | 140 |  |  |  |
Tangible common equity (non-GAAP) | y | $ | 19,716 |  | $ | 18,833 |  | $ | 8,295 |  |  |  |
Total assets (GAAP) | z | 213,758 |  | 213,765 |  | 109,298 |  |  |  |
Tangible assets (non-GAAP) | aa | 213,100 |  | 213,090 |  | 108,812 |  |  |  |
Total equity to total assets | w/z | 9.94 | % | 9.54 | % | 8.84 | % |  |  |
Tangible common equity to tangible assets (non-GAAP) | y/aa | 9.25 |  | 8.84 |  | 7.62 |  |  |  |

Note: Certain items above do not precisely recalculate as presented due to rounding.
Dollars in millions, except share and per share data
|  | Three Months Ended |  | Year Ended December 31,
Non-GAAP Reconciliations (continued) |  | December 31, 2023 | September 30, 2023 | December 31, 2022 |  | 2023 | 2022
Book value and tangible book value per common share at period end |  |  |  |  |  |  |
Common shares outstanding at period end | bb | 14,520,118 |  | 14,520,103 |  | 14,506,202 |  |  |  |
Book value per share | x/bb | $ | 1,403.12 |  | $ | 1,343.52 |  | $ | 605.36 |  |  |  |
Tangible book value per share (non-GAAP) | y/bb | 1,357.77 |  | 1,297.00 |  | 571.89 |  |  |  |
Efficiency ratio |  |  |  |  |  |  |
Net interest income | cc | $ | 1,911 |  | $ | 1,990 |  | $ | 802 |  |  | $ | 6,712 |  | $ | 2,946 |
Efficiency ratio (GAAP) | j / (h + cc) | 60.80 | % | 54.34 | % | 61.74 | % |  | 28.40 | % | 60.50 | %
Adjusted efficiency ratio (non-GAAP) | k / (i + cc) | 48.00 |  | 46.04 |  | 54.08 |  |  | 49.33 | % | 56.40 | %
Rental income on operating lease equipment |  |  |  |  |  |  |
Rental income on operating lease equipment |  | $ | 252 |  | $ | 248 |  | $ | 224 |  |  | $ | 971 |  | $ | 864 |
Less: |  |  |  |  |  |  |
Depreciation on operating lease equipment |  | 96 |  | 95 |  | 88 |  |  | 371 |  | 345 |
Maintenance and other operating lease expenses |  | 59 |  | 51 |  | 47 |  |  | 222 |  | 189 |
Adjusted rental income on operating lease equipment (non-GAAP) |  | $ | 97 |  | $ | 102 |  | $ | 89 |  |  | $ | 378 |  | $ | 330 |
Income tax expense |  |  |  |  |  |  |
Income tax expense |  | $ | 199 |  | $ | 245 |  | $ | 135 |  |  | $ | 611 |  | $ | 264 |
Impact of notable items |  | 90 |  | 58 |  | (32) |  |  | 383 |  | 135 |
Adjusted income tax expense (non-GAAP) |  | $ | 289 |  | $ | 303 |  | $ | 103 |  |  | $ | 994 |  | $ | 399 |
Note: Certain items above do not precisely recalculate as presented due to rounding.