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1©2023 Bread Financial Third quarter 2026 results © 2 0 2 2 B r e a d F i n a n c i a l | C o n f i d e n t i a l & P r o p r i e t a r y 1 October 22, 2026
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2©2026 Bread Financial Increasing credit sales and accelerating loan and deposit growth • Credit sales increased 9% to $7.4 billion and end-of-period loans of $18.9 billion were up 7% year-over-year. ◦ Momentum from both new and existing partners and increased general-purpose spending. • Renewed and extended long-term agreements with two of our top 10 partners, Signet Jewelers and Sephora. • Consumer deposits of $9.9 billion at quarter-end, increased 21%, or $1.7 billion, year-over-year. Strong financial results and strategic capital allocation • Net income of $156 million and earnings per diluted common share (EPS) of $3.82. Pretax income increased $13 million, or 6%, as strong loan growth resulted in a 5% increase in revenue. • Pretax pre-provision earnings (PPNR)(1) increased $35 million, or 7%. • Tangible book value per common share(1) of $66.95 increased $10.59, or 19%, year-over-year. • Declared a quarterly cash dividend of $0.25 per common share, a 9% increase from the prior quarter. • Repurchased 0.7 million shares of common stock for an aggregate purchase price of $75 million. Strong corporate governance, risk management, and financial resilience • Completed our bank merger on October 1, demonstrating further evidence of the company's transformation and the strength of our enhanced enterprise risk, funding, and capital management. • Received credit ratings upgrade from Moody's to Ba1 from Ba2. • Enhanced financial resilience driven by responsible growth, prudent underwriting standards, and ongoing operational excellence initiatives. • Our customers continue to effectively adapt to macroeconomic conditions as evidenced by lower delinquencies and losses. • Our emphasis on disciplined credit risk management and product diversification toward co-brand credit cards and installment products will continue to positively impact risk and income diversification. Key highlights Third quarter 2026 (1) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” and "Reconciliation of GAAP to Non-GAAP Financial Measures."
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3©2026 Bread Financial $1,017 million Revenue Diluted EPS Net income $156 million $3.82 Third quarter 2026 financial highlights Year-over-year comparisons • Credit sales were $7.4 billion, an increase of $0.6 billion, or 9%, driven by growth in both new and existing partnerships, as well as increased general-purpose spending. • Average credit card and other loans of $18.6 billion were up 6%, and end-of-period credit card and other loans of $18.9 billion increased 7%, benefiting from growth in our new partnerships and improved credit sales. • End-of-period consumer deposits of $9.9 billion increased 21%, or $1.7 billion. • Revenue increased $46 million, or 5%, primarily reflecting loan growth, lower interest expense, higher merchant and interchange fees, partially offset by higher retailer share arrangements and lower billed late fees. • Non-interest expenses increased $11 million, or 2%, as a result of higher information processing and communication costs, as well as employee compensation and benefits costs, partially offset by lower depreciation and marketing expenses. • Net income decreased $32 million, or 17%, as the prior year included a $38 million favorable discrete tax item. Pretax income increased $13 million, or 6%, as strong loan growth drove an increase in revenue. • PPNR(1) increased $35 million, or 7%, driven by loan growth and prudent expense management. • The delinquency rate of 5.57% decreased 47 basis points. • The net loss rate of 6.40% decreased 99 basis points. ROTCE(1) 23.6% (1) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” and "Reconciliation of GAAP to Non-GAAP Financial Measures." Impacts from debt repurchases ($ in millions, except per share amounts) Total non-interest expenses Net income available to common stockholders Diluted EPS 3Q26 3Q25 3Q26 3Q25 3Q26 3Q25 GAAP-basis $ 487 $ 476 $ 150 $ 188 $ 3.82 $ 3.96 Impacts from debt repurchases 1 3 1 3 0.02 0.06 Adjusted GAAP-basis(1) $ 486 $ 473 $ 151 $ 191 $ 3.84 $ 4.02
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4©2026 Bread Financial ($ in millions, except per share amounts) 3Q26 3Q25 $ change % change Total interest income $ 1,294 $ 1,242 $ 52 4 Total interest expense 199 210 (11) (6) Net interest income 1,095 1,032 63 6 Total non-interest income (78) (61) (17) 27 Revenue 1,017 971 46 5 Net principal losses 300 327 (27) (8) Reserve build (release) 21 (28) 49 (173) Provision for credit losses 321 299 22 7 Total non-interest expenses 487 476 11 2 Income from continuing operations before income taxes 209 196 13 6 Provision for income taxes 53 8 45 539 Income from continuing operations 156 188 (32) (17) Net income $ 156 $ 188 $ (32) (17) Dividends declared to preferred stockholders (6) — (6) nm Net income available to common stockholders $ 150 $ 188 $ (38) (20) Adj. net income available to common stockholders(1) $ 151 $ 191 $ (40) (21) Earnings per diluted common share $ 3.82 $ 3.96 $ (0.14) (4) Adjusted earnings per diluted common share(1) $ 3.84 $ 4.02 $ (0.18) (4) Pretax pre-provision earnings (PPNR)(1) $ 530 $ 495 $ 35 7 Adjusted PPNR(1) $ 531 $ 498 $ 33 7 Adjusted PPNR⁽¹⁾ $498 $531 $1,456 $1,588 3Q25 3Q26 YTD '25 YTD '26 ($ in millions) Summary P&L results (1) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” and "Reconciliation of GAAP to Non-GAAP Financial Measures." nm – Not meaningful, denoting a variance of 1,000 percent or more. +7% +9%
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5©2026 Bread Financial $17.6 $17.7 $18.3 $17.9 $17.4 $17.5 $18.0 $18.0 $18.3 Consumer deposits Wholesale deposits Secured borrowings Unsecured borrowings 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 $22.0 $22.1 $22.6 $22.1 $21.8 $21.9 $22.5 $22.5 $23.0 Credit card and other loansCash and investment securities 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 Average interest-bearing liabilities ($ in billions) Average interest-earning assets ($ in billions) Interest-earning asset yields and mix 27.4% 25.7% 26.5% 26.0% 27.0% 26.7% 27.1% 26.4% 26.8% 23.1% 22.0% 22.1% 21.7% 22.6% 22.5% 22.7% 21.9% 22.3% 18.8% 17.8% 18.1% 17.7% 18.8% 18.9% 19.3% 18.5% 18.9% Loan yield Avg. earning asset yieldNet interest margin Interest-bearing liability costs and funding mix 5.4% 5.2% 5.0% 4.9% 4.8% 4.5% 4.4% 4.3% 4.3% 4.7% 4.5% 4.3% 4.2% 4.1% 4.0% 3.9% 3.9% 3.9% Cost of total interest-bearing liabilitiesCost of deposits Net interest margin 81% 82% 80% 80% 81% 82% 81% 81% 81% 19% 18% 20% 20% 19% 18% 19% 19% 19% 20% 21% 23% 19% 16% 16% 18% 16% 13%7% 6% 5% 7% 7% 6% 4% 4% 4% 41% 43% 43% 45% 47% 48% 48% 50% 53% 32% 30% 29% 29% 30% 30% 30% 30% 30%
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6©2026 Bread Financial Funding, capital, and liquidity $17.4 $18.3 $13.4 $15.1 $2.9 $2.4 $1.1 $0.8 Deposits Secured borrowings Unsecured borrowings 3Q25 3Q26 CET1 3Q25 14.0 % Net earnings 3.1 % Risk-weighted asset changes (0.7) % Preferred and common stock dividends (0.3) % Common stock repurchases (3.1) % Debt repurchases (0.2) % Other activity, net 0.3 % 3Q26 13.1 % CET1 capital ratio 14.0% 13.1% 3Q25 3Q26 Tier 1 capital ratio 14.0% 14.1% 3Q25 3Q26 TCE⁽¹⁾ + credit reserve rate 26.4% 24.6% 3Q25 3Q26 Total risk-based capital ratio 17.5% 17.1% 3Q25 3Q26 CET1 capital ratio walk Capital ratios Average funding sources 3Q26 3Q25 Liquid assets 4.0 3.8 Undrawn credit facilities 3.1 4.0 Total 7.1 7.8 % of liquid resources to total assets 30.4% 35.8% (1) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” and "Reconciliation of GAAP to Non-GAAP Financial Measures." ($ in billions) (83% of total funding) (77% of total funding) End-of-period liquid resources ($ in billions)
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7©2026 Bread Financial $2,190 $2,241 $2,172$2,098 $2,070 $2,106$2,078 $2,075 $2,096 12.2% 11.9% 12.2% 11.9% 11.7% 11.2% 11.5% 11.2% 11.1% 25.4% 24.1% 25.3% 25.7% 26.4% 24.7% 25.5% 24.6% 24.6% ACL balance Reserve rate⁽¹⁾ TCE⁽²⁾ + credit reserve rate 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 Net loss rates⁽¹⁾ 7.8% 8.0% 8.2% 7.9% 7.4% 7.4% 7.3% 7.0% 6.4% 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 Delinquency rates 6.4% 5.9% 5.9% 5.7% 6.0% 5.8% 5.6% 5.3% 5.6% 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 5-year peak rate: 8.6% 5-year low rate: 4.4% (in 4Q21) 5-year avg rate: ~7.0% 5-year peak rate: 6.5% 5-year avg rate: ~5.6% 5-year low rate: 3.9% (4Q21) 63% 64% 63% 64% 63% 64% 64% 65% 64% 24% 23% 24% 23% 24% 23% 24% 23% 24% 13% 13% 13% 13% 13% 13% 12% 12% 12% Greater than 650 591-650 590 or below 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 Reserve rates and loss absorption capacity ($ in millions) Revolving loan credit risk distribution (VantageScore) Credit quality and allowance (1) See Additional footnotes and definitions of terms in the Appendix. (2) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” and "Reconciliation of GAAP to Non-GAAP Financial Measures."
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8©2026 Bread Financial 2026 financial outlook Full year 2025 actuals Full year 2026 outlook Commentary Average loans 2025: $17,850 Approximately 4% Based on our current economic outlook and visibility into our pipeline and partner growth, we now expect 2026 average loans to be up approximately 4% from full year 2025. Revenue 2025: $3,845 million Approximately 5% Revenue growth is now expected to be up approximately 5% from 2025, primarily driven by average loan growth. Adjusted total non-interest expenses(1) 2025: $1,914 million Positive operating leverage Expense growth is managed based on revenue generation and ongoing investment in our business. We expect to deliver positive operating leverage in 2026, excluding the pretax impacts from our debt repurchases. We continue to invest in AI capabilities, technology modernization, marketing, and product innovation to drive growth and efficiencies. Net loss rate 2025: 7.7% Below 7.0% 2026 net loss rate is expected to improve from 2025 given a resilient consumer, our disciplined credit management, and continued risk and product mix shifts. (1) Represents a Non-GAAP financial measure. We are unable to provide a quantitative reconciliation of the forward-looking 2026 financial outlook for this Non-GAAP financial measure to its most directly comparable forward-looking GAAP measure as we cannot reliably predict all of the necessary components of such a forward-looking GAAP measure without unreasonable effort. In the calculation of Full year 2025 actuals, Adjusted total non-interest expenses excludes from Total non-interest expenses a $74 million pre-tax impact from our debt repurchases. As of 10/22/2026
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9©2026 Bread Financial Appendix © 2 0 2 2 B r e a d F i n a n c i a l | C o n f i d e n t i a l & P r o p r i e t a r y 9
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10©2026 Bread Financial Building on our position of strength Disciplined capital allocation Effectively manage capital ensuring appropriate returns on investments to achieve our long-term financial targets while maintaining a strong balance sheet Operational excellence Accelerate initiatives to deliver AI capabilities, technology advancements, improved customer satisfaction, reduced risk exposure, and enterprise-wide efficiency Responsible growth Accelerate sustainable growth through our diversified product suite and expand revenue generation opportunities, delivering value to our brand partners and customers 2026 focus areas Proactive, strategic risk management Execute strategies to improve credit performance and maintain strong risk and control effectiveness while reinforcing regulatory vigilance
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11©2026 Bread Financial Adjusted efficiency ratio 49% 48% 49% 48% 3Q25 3Q26 YTD '25YTD '26 Adjusted non-interest expenses $473 $486 $1,414 $1,439 3Q25 3Q26 YTD '25YTD '26 Non-interest expenses $6 $(2) $13 $(3) $(3) $— Employee comp. and benefits: Card and processing: Info. processing and comm.: Marketing: Depreciation and amortization: Other: 3% -3% 19% -6% -13% -2% 3Q26 vs. 3Q25 change in non-interest expenses ($ in millions) -89 bps ($ in millions) +3% Non-interest expenses increased 2% versus 3Q25 • Employee compensation and benefits costs increased primarily due to higher wages related to annual merit increases and incentive compensation. • Information processing and communication costs increased primarily due to new software investments and increased technology-related service contract costs. excl. impacts from debt repurchases(1) excl. impacts from debt repurchases(1) (1) Represents a Non-GAAP financial measure. See “Non-GAAP Financial Measures” and "Reconciliation of GAAP to Non-GAAP Financial Measures." +2% -183 bps
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12©2026 Bread Financial Diversified product and partner mix Product diversification 58% 43% 35% 49% 3% 4%4% 4% Co-brand Private label Proprietary Bread Pay 3Q26 3Q26 Credit sales End-of-period loans Partner diversification 34% 18% 20% 22% 17% 22% 8% 9% 6% 13% 5% 4% 4% 5% 3% 4%3% 3% Travel and entertainment Specialty apparel Health and beauty Home Jewelry Sporting goods Technology and electronicsProprietary card Other 3Q26 3Q26 Credit sales End-of-period loans
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13©2026 Bread Financial 6.30% 7.05% 7.97% 6.94% 8.04% 8.53% 8.59% 7.77% 8.03% 8.16% 7.88% 7.39% 7.43% 7.33% 6.98% 6.40% 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 5.53% 5.71% 5.53% 6.26% 6.50% 6.25% 5.99% 6.44% 5.94% 5.93% 5.73% 6.04% 5.75% 5.59% 5.25% 5.57% 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 15-year low rate: 3.8% (in 4Q14) 15-year avg rate: ~5.9% 15-year avg rate: ~4.9% 15-year low rate: 3.3% (in 2Q21) Credit quality trends Delinquency rates Net loss rates(1) 15-year peak rate: 8.6% 15-year peak rate: 6.5% (1) See Additional footnotes and definitions of terms in the Appendix. Notes: Starting with 3Q22 through 2Q23, the Net loss rate was impacted by the transition of our credit card processing services in June 2022.
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14©2026 Bread Financial Additional footnotes and definitions of terms • Average daily balance: Beginning in 2024, we revised the calculation of average balances to more closely align with industry practice by incorporating an average daily balance. Prior to 2024, average balances represent the average balance at the beginning and end of each month, averaged over the periods indicated. • Hurricanes Helene and Milton: As a result of Hurricanes Helene and Milton in September and October 2024, we froze delinquency progression in the fourth quarter of 2024 for customers in Federal Emergency Management Agency identified impact zones for one billing cycle. We estimate the net loss rate benefited by more than 20 basis points in the fourth quarter of 2024 and was negatively impacted by approximately 30 basis points in the second quarter of 2025. • Reserve rate: Reserve rate represents the percentage of the Allowance for credit losses to end-of-period Credit card and other loans. • TCE + credit reserve rate: Tangible common equity (TCE) + credit reserve rate represents the sum of TCE and Allowance for credit losses divided by end-of-period Credit card and other loans. TCE is a Non-GAAP financial measure; see "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Financial Measures."
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15©2026 Bread Financial Forward-looking statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward- looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “plan,” “likely,” “may,” “should” or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding, and the guidance we give with respect to, our anticipated operating or financial results, future financial performance and outlook, future dividend declarations, and future economic conditions. We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that are difficult to predict and, in many cases, beyond our control. Accordingly, our actual results could differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. Factors that could cause the outcomes to differ materially include, but are not limited to, the following: macroeconomic conditions, including inflation, interest rates, labor market conditions, financial and capital market conditions, recessionary pressures or concerns over a prolonged economic slowdown, and the related impact on consumer spending behavior, payments, debt levels, savings rates and other behaviors; domestic and international political events and conditions, including significant shifts in trade policy, such as changes to, or the imposition of, tariffs and/or trade barriers and consequently any economic impacts, volatility, uncertainty and geopolitical instability resulting therefrom, as well as ongoing wars and military conflicts, and international tensions or hostilities; local or global public health issues, climate-related events, impacts to the power grid, and natural disasters; future credit performance, including the level of future delinquency and charge-off rates; loss of, or reduction in demand for services and/or products from, significant brand partners or customers in the highly competitive markets in which we operate, including competition from new and non- traditional competitors, such as financial technology companies, and with respect to new products, services and technologies, such as the emergence or increase in popularity of agentic commerce, digital payment platforms and currencies and other alternative payment and deposit solutions; the concentration of our business in U.S. consumer credit; inaccuracies in the models and estimates on which we rely, including our credit risk management models and the amount of our Allowance for credit losses; the inability to realize the intended benefits of acquisitions, dispositions and other strategic initiatives; our level of indebtedness and ability to access financial or capital markets; pending and future federal and state legislation, executive action, regulation, supervisory guidance, and regulatory and legal actions, including, but not limited to, those related to financial regulatory reform and consumer financial services practices, as well as any such actions that would place limits on credit card interest rates or late fees, interchange fees or other charges; failures or breaches in our operational or security systems, including as a result of cyberattacks, unanticipated impacts from technology modernization projects or otherwise; and any liability or other adverse impacts arising out of or related to the spinoff of our former LoyaltyOne segment or the bankruptcy filings of Loyalty Ventures Inc. (LVI) and certain of its subsidiaries, including the pending litigation against us in connection with the spinoff. The foregoing factors, along with other risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward-looking statements, are described in greater detail under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.
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16©2026 Bread Financial We prepare our Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (GAAP). However, certain information included herein constitutes Non-GAAP Financial Measures. Our calculations of Non-GAAP Financial Measures may differ from the calculations of similarly titled measures by other companies. In particular: • We have previously repurchased and may, from time to time, in the future continue to repurchase debt, including any outstanding senior unsecured notes, subordinated notes or convertible notes. In such transactions, we may pay a premium to induce these repurchases, or in certain cases repurchase at a discount, which, from a GAAP perspective, would result in an impact to Total non-interest expenses, with a corresponding impact also reflected in Net income available to common stockholders and consequently our Earnings per diluted common share. For our prior debt repurchases, we show adjustments to these three financial statement line items to exclude the impacts from our debt repurchases. We use Adjusted total non-interest expenses, Adjusted net income available to common stockholders, and Adjusted earnings per diluted common share to evaluate the ongoing operations of the Company excluding the volatility that can occur from the impacts of our debt repurchases. • Pretax pre-provision earnings (PPNR) represents Income from continuing operations before income taxes and the Provision for credit losses. PPNR excluding impacts from debt repurchases then excludes from PPNR the loss or gain on any debt repurchases in the period. We use PPNR and PPNR excluding impacts from debt repurchases as metrics to evaluate our results of operations before income taxes, excluding the movements that can occur within Provision for credit losses and the one-time nature of the impacts from debt repurchases. • Return on average tangible common equity (ROTCE) represents annualized Income from continuing operations less Dividends to preferred stockholders, divided by average Tangible common equity. Tangible common equity (TCE) represents Total stockholders’ equity reduced by Preferred stock and Goodwill and intangible assets, net. We use ROTCE as a metric to evaluate the Company’s performance. • Tangible book value per common share represents TCE divided by common shares outstanding. We use Tangible book value per common share, a metric used across the industry, to assess capital and performance, in conjunction with ROTCE. We believe the use of these Non-GAAP financial measures provide additional clarity in understanding our results of operations and trends. For a reconciliation of these Non-GAAP financial measures to the most directly comparable GAAP measures, please see the “Reconciliation of GAAP to Non-GAAP Financial Measures.” Non-GAAP financial measures
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17©2026 Bread Financial Reconciliation of GAAP to Non-GAAP financial measures Continued on the following page ($ in millions, except per share amounts) 3Q26 3Q25 YTD '26 YTD '25 Adjusted net income available to common stockholders Net income available to common stockholders $ 150 $ 188 $ 473 $ 464 Impacts from debt repurchases 1 3 2 15 Adjusted net income available to common stockholders $ 151 $ 191 $ 475 $ 479 Adjusted earnings per diluted common share Earnings per diluted common share $ 3.82 $ 3.96 $ 11.54 $ 9.65 Impacts from debt repurchases 0.02 0.06 0.06 0.31 Adjusted earnings per diluted common share $ 3.84 $ 4.02 $ 11.60 $ 9.96 Adjusted total non-interest expenses Total non-interest expenses $ 487 $ 476 $ 1,442 $ 1,433 Impacts from debt repurchases 1 3 3 19 Adjusted total non-interest expenses $ 486 $ 473 $ 1,439 $ 1,414 Pretax pre-provision earnings (PPNR) Income from continuing operations before income taxes $ 209 $ 196 $ 648 $ 568 Provision for credit losses 321 299 937 869 Pretax pre-provision earnings (PPNR) $ 530 $ 495 $ 1,585 $ 1,437 Impacts from debt repurchases 1 3 3 19 PPNR excluding impacts from debt repurchases $ 531 $ 498 $ 1,588 $ 1,456
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18©2026 Bread Financial Reconciliation of GAAP to Non-GAAP financial measures ($ in millions) 3Q26 3Q25 YTD '26 YTD '25 Average Tangible common equity Average Total stockholders’ equity $ 3,497 $ 3,335 $ 3,464 $ 3,255 Less: average Preferred stock (201) — (139) — Less: average Goodwill and intangible assets, net (699) (728) (707) (736) Average Tangible common equity $ 2,597 $ 2,607 $ 2,618 $ 2,519 Tangible common equity (TCE) Total stockholders’ equity $ 3,437 $ 3,317 $ 3,437 $ 3,317 Less: Preferred stock (201) — (201) — Less: Goodwill and intangible assets, net (694) (723) (694) (723) Tangible common equity (TCE) $ 2,542 $ 2,594 $ 2,542 $ 2,594