Shares fell 4.5% as investors reacted negatively to cautious outlook commentary and modest net interest income growth, which fell short of driving more meaningful momentum despite disciplined expense management and steady capital markets performance.
- Reported EPS of $3.05 includes a $215 million pretax gain from Visa shares liquidation and a $37 million net unrealized gain on an SBIC investment; excluding these, EPS was $1.74, up 10% year-over-year.
- Net interest income rose 2% sequentially to $677 million, with a stable net interest margin of 3.27%, showing limited margin expansion despite higher rates.
- Customer-related noninterest income increased to $182 million, supported by capital markets fees which gained $8 million, driven by real estate and investment banking advisory services.
- Adjusted noninterest expenses fell quarter-over-quarter to $546 million, reflecting seasonal compensation reductions and lower FDIC assessments.
- Management’s outlook suggests only moderate growth in net interest income and fee-related income over the next year, signaling tempered expectations amid a challenging environment.
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