EX-99.1 2 a4q2020earningsrelease.htm 4Q2020 EARNINGS RELEASE

First Horizon Corporation Reports Fourth Quarter Net Income Available to Common of $234 million,
or EPS of $0.42; $255 million, or $0.46, on an Adjusted basis*
Fourth quarter 2020 ROTCE of 16.7%; Adjusted ROTCE of 18.2%*
2020 net income available to common stockholders of $822 million, or EPS of $1.89; $528 million, or EPS of $1.22, on an Adjusted basis*
Tangible book value per share of $10.23 up 3% in the quarter
MEMPHIS, TN (January 22, 2021) – First Horizon Corporation (NYSE: FHN or “First Horizon”) today reported fourth quarter 2020 net income available to common shareholders ("NIAC") of $234 million, or earnings per share of $0.42, compared with third quarter 2020 NIAC of $523 million, or earnings per share of $0.95. Fourth quarter 2020 results were reduced by a net $20 million after-tax, or $0.04 per share, of notable items largely related to the IBERIABANK Corporation Merger ("IBKC Merger") compared with a net $331 million after-tax benefit, or $0.60 per share, in third quarter 2020. Excluding notable items, adjusted fourth quarter NIAC totaled $255 million, or $0.46 per share, compared with $193 million, or $0.35 per share in third quarter 2020.*
Full year 2020 NIAC of $822 million, or earnings per share of $1.89, compares with $435 million, or earnings per share of $1.38, in 2019, largely reflecting the impact of the IBKC Merger which closed on July 1, 2020. 2020 results include a net $294 million after-tax benefit, or $0.68 per share, from notable items largely related to the IBKC merger and Truist branch acquisition compared with a net $90 million after-tax, or $0.29 per share, reduction tied to notable items in 2019. On an adjusted basis, full year 2020 NIAC of $528 million, or earnings per share of $1.22, compares with NIAC of $525 million, or $1.66 per share, in 2019. Results prior to third quarter 2020 reflect legacy First Horizon results only.
“I am tremendously proud of our performance this year and the results we delivered despite the challenging landscape. We clearly benefited from strong fixed income and mortgage banking fees and disciplined expense management," said Chief Executive Officer and President Bryan Jordan. “We are executing well on our merger of equals with IBERIABANK, and I am even more confident today in the power of our diversified business model, expanded footprint and combined expertise to meet the needs of our clients.”
Jordan continued, "I commend our associates for their unwavering commitment to our clients, communities and core values. Throughout a year of unprecedented challenges, our team achieved transformational milestones with incredible resiliency. Looking ahead, we remain focused on successfully executing on the integration, delivering on our strategic priorities, and investing in products and technology to ensure an exceptional client experience and help drive enhanced shareholder value."
Fourth Quarter and Full Year 2020 Notable and Unusual Items

Notable Items |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |
($s in millions, except per share data) | 4Q20 |  | 3Q20 |  |  |  |  |  | 4Q19 |  | 2020 |  | 2019
Summary of Notable Items: |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase accounting gain | $ | 1 |  |  | $ | 532 |  |  |  |  |  |  | $ | — |  |  | $ | 533 |  |  | $ | — |
Merger/acquisition non-PCD provision expense | — |  |  | (147) |  |  |  |  |  |  | — |  |  | (147) |  |  | — |
Merger/acquisition expense | (34) |  |  | (101) |  |  |  |  |  |  | (16) |  |  | (155) |  |  | (39) |
Charitable contributions | — |  |  | (15) |  |  |  |  |  |  | (11) |  |  | (15) |  |  | (11) |
Other notable expenses | — |  |  | — |  |  |  |  |  |  | (10) |  |  | — |  |  | (64) |
Total Notable items (pre-tax) | $ | (33) |  |  | $ | 269 |  |  |  |  |  |  | $ | (37) |  |  | $ | 216 |  |  | $ | (114) |
Total Notable items (after-tax) | (20) |  |  | 331 |  |  |  |  |  |  | (30) |  |  | 294 |  |  | (90) |
EPS impact of notable items | $ | 0.04 |  |  | $ | (0.60) |  |  |  |  |  |  | $ | 0.10 |  |  | $ | (0.68) |  |  | $ | 0.29 |

*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. All references to loans include leases. All references to earnings per share are based on diluted shares. Please see page 7 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 22
1

Fourth quarter 2020 results reflect a $20 million after-tax, or $0.04 per share, decrease tied to notable items compared with a net $269 million, or $0.60 per share, benefit in third quarter 2020. Fourth quarter notable items largely relate to the IBKC Merger/Branch Acquisition and include:
•$34 million of merger-related expense largely tied to IBKC merger integration costs
In addition to the above notable items, 4Q20 adjusted results were impacted by the following unusual items:
•$5 million net reduction to NII, or a 3 basis point net interest margin impact, largely tied to a promotional credit card offering.
•$3 million of securities losses in other noninterest income tied to modest repositioning of the securities portfolio.
•$8 million in incentives and commissions tied to a one-time $1,000 bonus to approximately 5,000 employees and COVID-related vacation carryover net accrual costs.
•$5 million benefit to other noninterest expense tied to lower regulatory-related costs, largely FDIC insurance.
2020 results reflect a $294 million after-tax benefit, or $0.68 per share, from notable items largely related to the IBKC merger and Truist branch acquisition.
Fourth Quarter 2020 Highlights*
•Total revenue of $810 million decreased $545 million from unusually high third quarter 2020 levels which included a $532 million merger purchase accounting gain in notable items. Adjusted revenue of $810 million decreased from $823 million in third quarter 2020 largely driven by an $8 million decrease tied to unusual items. Results also reflect the impact of net interest income headwinds and continued COVID-19 impacts on traditional banking businesses which were largely offset by continued strength in fixed income and mortgage banking.
•Noninterest expense of $508 million decreased $79 million from third quarter 2020 driven by a $82 million decrease in notable items. Adjusted expense of $474 million increased $3 million from third quarter 2020, and included a net $3 million increase tied to unusual items. Adjusted expense before the impact of unusual items largely reflects lower personnel expense and an increase in outside services which included the impact of seasonality. Results also reflect the benefit of a $6 million increase in merger cost saves from third quarter 2020.
•Provision for credit losses of $1 million decreased $226 million from third quarter 2020, largely reflecting an improved overall macroeconomic outlook and included a $28 million reserve release.
•Results reflect an efficiency ratio of 63%, or 59% on an adjusted basis.
•Tangible book value per share of $10.23 at December 31, 2020 increased 3% from $9.92 as of September 30, 2020. The IBKC Merger was accretive to tangible book value per share within six months, well ahead of the estimated two-year earnback period.
•ROCE of 12.53%; ROTCE of 16.73%; Adjusted ROTCE of 18.18%; CET 1 of 9.67%; and total capital of 12.55%
Strategic Plan Update
•Merger integration is well underway with targeted cost saves upsized from $170 million to $200 million
•Achieved annualized merger cost saves of approximately $56 million in fourth quarter 2020.
COVID-19 Update
•Accepting applications and continuing to monitor updates from the Small Business Administration regarding the second round of the Paycheck Protection Program ("PPP") and the ability to apply for a new or additional loan.
•Loans on deferral declined to 0.9% of total loans excluding PPP as of December 31, 2020, compared with 2.4% at September 30, 2020.
*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. All references to loans include leases. All references to earnings per share are based on diluted shares. Please see page 7 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 22
2

SUMMARY RESULTS, Continued |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  | 4Q20 Change vs.
($s in millions, except per share and balance sheet data) |  | 4Q20 |  | 3Q20 |  | 4Q19 |  | 3Q20 |  | 4Q19
|  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |
Income Statement |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 522 |  |  | $ | 532 |  |  | $ | 311 |  |  | $ | (11) |  |  | (2) |  |  | $ | 210 |  |  | 68 |  |
Noninterest income 1 |  | 288 |  |  | 823 |  |  | 183 |  |  | (534) |  |  | (65) |  |  | 105 |  |  | 57 |  |
Total revenue |  | 810 |  |  | 1,355 |  |  | 495 |  |  | (545) |  |  | (40) |  |  | 315 |  |  | 64 |  |
Noninterest expense |  | 508 |  |  | 587 |  |  | 328 |  |  | (79) |  |  | (13) |  |  | 180 |  |  | 55 |  |
Pre-provision net revenue 2 |  | 302 |  |  | 768 |  |  | 166 |  |  | (466) |  |  | (61) |  |  | 136 |  |  | 82 |  |
Provision for credit losses 3 |  | 1 |  |  | 227 |  |  | 9 |  |  | (226) |  |  | (100) |  |  | (8) |  |  | (89) |  |
Income before income taxes |  | 301 |  |  | 541 |  |  | 157 |  |  | (240) |  |  | (44) |  |  | 144 |  |  | 92 |  |
Provision for income taxes |  | 56 |  |  | 2 |  |  | 36 |  |  | 54 |  |  | NM |  | 20 |  |  | 57 |  |
Net income |  | 245 |  |  | 539 |  |  | 121 |  |  | (294) |  |  | (55) |  |  | 124 |  |  | 102 |  |
Net income attributable to noncontrolling interest |  | 3 |  |  | 3 |  |  | 3 |  |  | — |  |  | (5) |  |  | — |  |  | (3) |  |
Net income/(loss) attributable to controlling interest |  | 242 |  |  | 536 |  |  | 118 |  |  | (294) |  |  | (55) |  |  | 124 |  |  | 104 |  |
Preferred stock dividends |  | 8 |  |  | 13 |  |  | 2 |  |  | (5) |  |  | (40) |  |  | 6 |  |  | NM |
Net income/(loss) available to common shareholders |  | $ | 234 |  |  | $ | 523 |  |  | $ | 117 |  |  | $ | (289) |  |  | (55) |  |  | $ | 118 |  |  | 101 |  |
Adjusted net income 4 |  | $ | 265 |  |  | $ | 208 |  |  | $ | 151 |  |  | $ | 57 |  |  | 27 |  |  | $ | 114 |  |  | 75 |  |
Adjusted net income/(loss) available to common shareholders 4 |  | $ | 255 |  |  | $ | 193 |  |  | $ | 147 |  |  | $ | 62 |  |  | 32 |  |  | $ | 108 |  |  | 73 |  |
Common stock information |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS |  | $ | 0.42 |  |  | $ | 0.95 |  |  | $ | 0.37 |  |  | $ | (0.53) |  |  | (56) |  |  | $ | 0.05 |  |  | 14 |  |
Adjusted EPS 4 |  | $ | 0.46 |  |  | $ | 0.35 |  |  | $ | 0.47 |  |  | $ | 0.11 |  |  | 31 |  |  | $ | (0.01) |  |  | (2) |  |
Diluted shares |  | 557 |  |  | 551 |  |  | 313 |  |  | 6 |  |  | 1 |  |  | 244 |  |  | 78 |  |
Key performance metrics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest margin |  | 2.71 | % |  | 2.84 | % |  | 3.26 | % |  | (13) | bp |  |  |  | (55) | bp |  |  |
Efficiency ratio |  | 62.71 |  |  | 43.31 |  |  | 66.35 |  |  | 1,940 |  |  |  |  | (364) |  |  |  |
Adjusted efficiency ratio 4 |  | 58.57 |  |  | 57.26 |  |  | 58.88 |  |  | 131 |  |  |  |  | (31) |  |  |  |
Effective income tax rate |  | 18.70 |  |  | 0.41 |  |  | 22.87 |  |  | 1,829 |  |  |  |  | (417) |  |  |  |
Return on average assets |  | 1.16 |  |  | 2.63 |  |  | 1.12 |  |  | (147) |  |  |  |  | 4 |  |  |  |
Adjusted return on average assets 4 |  | 1.26 |  |  | 1.01 |  |  | 1.40 |  |  | 25 |  |  |  |  | (14) |  |  |  |
Return on average common equity (“ROCE") |  | 12.53 |  |  | 28.49 |  |  | 9.97 |  |  | (1,596) |  |  |  |  | 256 |  |  |  |
Return on average tangible common equity (“ROTCE”)4 |  | 16.73 |  |  | 37.75 |  |  | 15.03 |  |  | (2,102) |  |  |  |  | 170 |  |  |  |
Adjusted ROTCE 4 |  | 18.18 |  |  | 13.90 |  |  | 18.88 |  |  | 428 |  |  |  |  | (70) |  |  |  |
Noninterest income as a % of total revenue |  | 35.61 |  |  | 60.72 |  |  | 37.05 |  |  | (2,511) |  |  |  |  | (144) |  |  |  |
Adjusted noninterest income as a % of total revenue 4 |  | 35.56 | % |  | 35.32 | % |  | 37.05 | % |  | 24 | bp |  |  |  | (149) | bp |  |  |
Balance Sheet (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average loans |  | $ | 59.8 |  |  | $ | 60.1 |  |  | $ | 30.7 |  |  | $ | (0.3) |  |  | — |  |  | $ | 29.1 |  |  | 95 |  |
Average deposits |  | 69.6 |  |  | 67.1 |  |  | 32.8 |  |  | 2.5 |  |  | 4 |  |  | 36.9 |  |  | 112 |  |
Average assets |  | 83.8 |  |  | 81.7 |  |  | 42.9 |  |  | 2.1 |  |  | 3 |  |  | 40.9 |  |  | 95 |  |
Average common equity |  | $ | 7.4 |  |  | $ | 7.3 |  |  | $ | 4.6 |  |  | $ | 0.1 |  |  | 2 |  |  | $ | 2.8 |  |  | 60 |  |
Asset Quality Highlights |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses to loans and leases |  | 1.80 | % |  | 1.80 | % |  | 0.66 | % |  | — | bp |  |  |  | 114 | bp |  |  |
Net charge-off ratio |  | 0.19 |  |  | 0.44 |  |  | 0.04 |  |  | (25) |  |  |  |  | 15 |  |  |  |
Nonperforming loan and leases ratio |  | 0.66 | % |  | 0.75 | % |  | 0.52 | % |  | (8) | bp |  |  |  | 14 | bp |  |  |
Capital Highlights (current quarter is an estimate) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common Equity Tier 1 |  | 9.67 | % |  | 9.21 | % |  | 9.20 | % |  | 46 | bp |  |  |  | 47 | bp |  |  |
Tier 1 |  | 10.73 |  |  | 10.25 |  |  | 10.15 |  |  | 48 |  |  |  |  | 58 |  |  |  |
Total Capital |  | 12.55 |  |  | 12.05 |  |  | 11.22 |  |  | 50 |  |  |  |  | 133 |  |  |  |
Tier 1 leverage |  | 8.24 | % |  | 8.25 | % |  | 9.04 | % |  | (1) | bp |  |  |  | (80) | bp |  |  |

Numbers may not foot due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 22.
*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. All references to loans include leases. All references to earnings per share are based on diluted shares. Please see page 7 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 22
3

SUMMARY RESULTS, Continued |  |  |  |  |  |  |  |  |
Year-end, Unaudited |  |  |  |  |  |  |  |  |
|  |  |  |  |  | 2020 Change vs.
(In millions, except EPS) |  | 2020 |  | 2019 |  | 2019 |
|  |  |  |  |  | $/bp |  | % |
Income Statement |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 1,662 |  |  | $ | 1,210 |  |  | $ | 452 |  |  | 37 |  |
Noninterest income 1 |  | 1,492 |  |  | 654 |  |  | 838 |  |  | 128 |  |
Total revenue |  | 3,155 |  |  | 1,864 |  |  | 1,291 |  |  | 69 |  |
Noninterest expense |  | 1,718 |  |  | 1,233 |  |  | 485 |  |  | 39 |  |
Pre-provision net revenue 2 |  | 1,436 |  |  | 631 |  |  | 805 |  |  | 128 |  |
Provision for credit losses 3 |  | 503 |  |  | 45 |  |  | 458 |  |  | NM |
Income before income taxes |  | 933 |  |  | 586 |  |  | 347 |  |  | 59 |  |
Provision for income taxes |  | 76 |  |  | 133 |  |  | (57) |  |  | (43) |  |
Net income |  | 857 |  |  | 452 |  |  | 405 |  |  | 89 |  |
Net income attributable to noncontrolling interest |  | 12 |  |  | 11 |  |  | 1 |  |  | 5 |  |
Net income/(loss) attributable to controlling interest |  | 845 |  |  | 441 |  |  | 404 |  |  | 92 |  |
Preferred stock dividends |  | 23 |  |  | 6 |  |  | 17 |  |  | NM |
Net income available to common shareholders |  | $ | 822 |  |  | $ | 435 |  |  | $ | 387 |  |  | 89 |  |
Adjusted net income 4 |  | $ | 563 |  |  | $ | 543 |  |  | $ | 20 |  |  | 4 |  |
Adjusted net income/loss available to common shareholders 4 |  | $ | 528 |  |  | $ | 525 |  |  | $ | 3 |  |  | 1 |  |
Common stock information |  |  |  |  |  |  |  |  |
EPS |  | $ | 1.89 |  |  | $ | 1.38 |  |  | $ | 0.51 |  |  | 37 |  |
Adjusted EPS 4 |  | $ | 1.22 |  |  | $ | 1.66 |  |  | $ | (0.45) |  |  | (27) |  |
Diluted shares |  | 434 |  |  | 316 |  |  | 118 |  |  | 37 |  |
Key performance metrics |  |  |  |  |  |  |  |  |
Net interest margin |  | 2.86 | % |  | 3.28 | % |  | (42) | bp |  |  |
Efficiency ratio |  | 54.47 |  |  | 66.15 |  |  | (1,168) |  |  |  |
Adjusted efficiency ratio 4 |  | 59.06 |  |  | 60.02 |  |  | (96) |  |  |  |
Effective income tax rate |  | 8.15 |  |  | 22.76 |  |  | (1,461) |  |  |  |
Return on average assets |  | 1.33 |  |  | 1.08 |  |  | 25 |  |  |  |
Adjusted return on average assets 4 |  | 0.87 |  |  | 1.30 |  |  | (43) |  |  |  |
Return on average common equity (“ROCE") |  | 13.66 |  |  | 9.60 |  |  | 406 |  |  |  |
Return on average tangible common equity (“ROTCE”)4 |  | 19.03 |  |  | 14.71 |  |  | 432 |  |  |  |
Adjusted ROTCE 4 |  | 12.15 |  |  | 17.60 |  |  | (545) |  |  |  |
Noninterest income as a % of total revenue |  | 47.31 |  |  | 35.09 |  |  | 1,222 |  |  |  |
Adjusted noninterest income as a % of total revenue 4 |  | 36.60 | % |  | 35.09 | % |  | 151 | bp |  |  |
Balance Sheet (billions) |  |  |  |  |  |  |  |  |
Average loans |  | $ | 46.2 |  |  | $ | 29.2 |  |  | $ | 17.0 |  |  | 58 |  |
Average deposits |  | 51.9 |  |  | 32.4 |  |  | 19.5 |  |  | 60 |  |
Average assets |  | 64.3 |  |  | 41.7 |  |  | 22.6 |  |  | 54 |  |
Average common equity |  | $ | 6.0 |  |  | $ | 4.5 |  |  | $ | 1.5 |  |  | 33 |  |
Asset Quality Highlights |  |  |  |  |  |  |  |  |
Allowance for credit losses to loans and leases |  | 1.80 | % |  | 0.66 | % |  | 114 | bp |  |  |
Net charge-off ratio |  | 0.19 |  |  | 0.04 |  |  | 15 |  |  |  |
Nonperforming loan and leases ratio |  | 0.66 | % |  | 0.52 | % |  | 14 | bp |  |  |
Capital Highlights (current quarter is an estimate) |  |  |  |  |  |  |  |  |
Common Equity Tier 1 |  | 9.67 | % |  | 9.20 | % |  | 47 | bp |  |  |
Tier 1 |  | 10.73 |  |  | 10.15 |  |  | 58 |  |  |  |
Total Capital |  | 12.55 |  |  | 11.22 |  |  | 133 |  |  |  |
Leverage |  | 8.24 | % |  | 9.04 | % |  | (80) | bp |  |  |

*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. All references to loans include leases. All references to earnings per share are based on diluted shares. Please see page 7 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 22
4

Fourth Quarter versus Third Quarter 2020
Net interest income
Net interest income of $522 million decreased $11 million from third quarter 2020 driven by an $8 million reduction in net loan accretion and securities premium amortization largely related to the IBKC merger and a net $5 million decrease largely tied to a promotional credit card offering included in unusual items. On a core basis, net interest income remained relatively stable. Net interest margin of 2.71% compares with 2.84% in the prior quarter and reflects a 13 basis point reduction tied to net merger accounting impacts and a 9 basis point reduction from higher excess cash balances. Core net interest margin excluding the impact of net merger accounting accretion, the impact of PPP loans and the impact of an increase in excess cash balances remained relatively stable.
Loans and leases
Average fourth quarter 2020 loan and lease balances of $59.8 billion decreased $298 million from third quarter 2020 largely reflecting a reduction in consumer real estate-secured and commercial real estate which more than offset a modest increase in commercial and industrial driven by growth in loans to mortgage companies. Period-end fourth quarter 2020 loans and leases of $58.2 billion decreased $1.5 billion driven by lower commercial and industrial, consumer real estate and commercial real estate.
Deposits
Average deposits of $69.6 billion increased $2.5 billion, driven by a $1.4 billion increase in savings and a $1.2 billion increase in demand deposits. Period-end deposits of $70.0 billion at December 31, 2020, increased $1.6 billion from $68.4 billion at September 30, 2020 reflecting growth in demand deposits, savings and other interest-bearing deposits. Interest-bearing deposit costs of 26 basis points improved 10 basis points linked quarter, reflecting continued pricing discipline.
Noninterest income
Noninterest income of $288 million decreased $534 million from unusually high third quarter levels that included a $532 million benefit from notable items. On an adjusted basis, noninterest income of $288 million decreased $4 million driven by $3 million of securities losses in other noninterest income tied to modest repositioning of the securities portfolio. Adjusted noninterest income remained relatively stable including this impact as seasonally lower results in mortgage banking more than offset improvement in all other categories. Fixed income noninterest income decreased $7 million linked quarter largely reflecting the impact of day count and lower fees in other products. Fixed income average daily revenue of $1.5 million was relatively stable with third quarter levels.
Noninterest expense
Noninterest expense of $508 million decreased $79 million from third quarter 2020 driven by a net $82 million reduction in notable items. Adjusted noninterest expense of $474 million increased $3 million from third quarter 2020 driven by a net $3 million impact from unusual items in incentives and commissions and other noninterest expense. Results also reflect the benefit of an annualized $56 million increase in merger-related cost saves.*
Asset quality
Net charge-offs of $29 million, or 19 basis points, decreased from unusually high third quarter levels of $67 million, or 44 basis points, which reflected higher energy portfolio losses.
Nonperforming loans of $386 million decreased $60 million from third quarter 2020 driven by a reduction in energy. Fourth quarter 2020 allowance to nonperforming coverage ratio of 249% compared with 221% in third quarter 2020. Fourth quarter 2020 nonperforming loans to loans ratio of 66 basis points compared with 75 basis points at third quarter 2020.
The allowance for credit losses to loans ratio remained steady at 1.80%.
*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. All references to loans include leases. All references to earnings per share are based on diluted shares. Please see page 7 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 22
5

Provision for credit losses of $1 million decreased $226 million from third quarter 2020 driven by a $147 million decrease in notable items tied to the IBKC Merger and Truist Branch Acquisition. Adjusted provision for credit losses of $1 million decreased $79 million linked quarter.*
Reserve release of $28 million reflects de-risking of the Energy portfolio through contracted loan sale expected to close in January 2021, lower balances and improving economic scenarios.
Capital
CET1 ratio of 9.67% in fourth quarter 2020 improved from 9.21% in third quarter 2020.
On October 27, 2020, the board of directors approved payment of a quarterly cash dividend on its common stock of $0.15 per share. The dividend was payable January 4, 2021, to the common shareholders of record on December 11, 2020. The board also approved payment of cash dividends on First Horizon’s Series A, Series B, Series C and Series E Preferred Stock.
Income taxes
The fourth quarter 2020 effective tax rate of 18.7% increased from the unusually low third quarter 2020 level of 0.4% which resulted from non-taxable IBKC Merger purchase accounting gain. On an adjusted basis, the effective tax rate of 20.7% in fourth quarter 2020 decreased from 23.3% in third quarter 2020.
Conference call information
Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on January 22 by dialing 1-888-317-6003 (if calling from the U.S.) or 412-317-6061 (if calling from outside the U.S) and entering access code 5989125. The conference call will begin at 8:30 a.m. CT.
Participants can also opt to listen to the live audio webcast with the accompanying slide presentation at http://ir.fhnc.com/Event.
A replay of the call will be available beginning at noon CT on January 22 until midnight CT on February 5 . To listen to the replay, dial 1-877-344-7529 (U.S. callers) or 412-317-0088 (international callers); the access code is 10150084. A replay of the webcast will also be available at http://ir.fhnc.com/Event and will be archived on the site for one year.
Forward-Looking Statements
This communication may contain forward-looking information, including guidance, involving significant risks and uncertainties. Forward-looking information is identified by words such as "believe," "expect," "anticipate," "intend," "estimate," "should," "is likely," "will," "going forward," and other expressions that indicate future events and trends and may be followed by or reference cautionary statements. A number of factors could cause actual results to differ materially from results stated in or suggested by forward-looking information. Those factors include: general economic and financial market conditions, including expectations of and actual timing and amount of interest rate movements including the slope of the yield curve; competition; ability to execute business plans; regional, national, and world-wide political developments; recent and future legislative and regulatory developments; inflation or deflation; market (particularly real estate market) and monetary fluctuations; pestilence; man-made or natural disasters; customer, investor and regulatory responses to any of those conditions or events; matters mentioned in this release; critical accounting estimates; FHN’s success in executing its business plans and strategies following its 2020 merger with IBERIABANK Corporation, and managing the risks involved; the potential impacts on FHN’s businesses of the coronavirus COVID-19 pandemic, including negative impacts from quarantines, market declines, and volatility, and changes in customer behavior related to COVID-19; and other factors described in FHN's annual report on Form 10-K, FHN’s other recent filings with the SEC, and FHN’s most recent earnings release and related materials. FHN disclaims any obligation to update any forward-looking statements to reflect future events or developments, or changes in expectations.
*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. All references to loans include leases. All references to earnings per share are based on diluted shares. Please see page 7 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 22
6

Use of Non-GAAP Measures and Regulatory Measures that are not GAAP
Certain measures are included in this financial supplement that are “non-GAAP,” meaning (under U.S. financial reporting rules) they are not presented in accordance with generally accepted accounting principles (“GAAP”) in the U.S. and also are not codified in U.S. banking regulations currently applicable to FHN. Although other entities may use calculation methods that differ from those used by FHN for non-GAAP measures, FHN’s management believes such measures are relevant to understanding the financial condition, capital position, and financial results of FHN and its business segments. Non-GAAP measures are reported to FHN’s management and Board of Directors through various internal reports.
Presentation of regulatory measures, some of which follow regulatory definitions rather than GAAP, provides a meaningful base for comparability to other financial institutions subject to the same regulations as FHN. Such measures are used by the various banking regulators in reviewing the performance, stability, and capital adequacy of financial institutions they regulate. Although not GAAP terms, these regulatory measures are not considered “non-GAAP” under U.S. financial reporting rules as long as their presentation conforms to regulatory standards. Regulatory measures used in this financial supplement include: common equity tier 1 capital, generally defined as common equity less goodwill, other intangibles, and certain other required regulatory deductions; tier 1 capital, generally defined as the sum of core capital (including common equity and instruments that cannot be redeemed at the option of the holder) adjusted for certain items under risk based capital regulations; and risk weighted assets (“RWA”), which is a measure of total on- and off-balance sheet assets adjusted for credit and market risk, used to determine regulatory capital ratios.
The non-GAAP measures presented in this earnings release are pre-provision net revenue ("PPNR"), return on average tangible common equity (“ROTCE”), tangible common equity (“TCE”) to tangible assets (“TA”), and tangible book value ("TBV") per common share, and various consolidated and segment results and performance measures and ratios adjusted for notable items.
Refer to the tabular reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items beginning on page 22 .
*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. All references to loans include leases. All references to earnings per share are based on diluted shares. Please see page 7 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 22
7

CONSOLIDATED INCOME STATEMENT |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | 4Q20 Change vs. |  |  |  |  |  | 2020 vs 2019
($s in millions, except per share data) | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q20 |  | 4Q19 |  | 2020 |  | 2019 |  |  |  |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |  |  |  |  |  | $ |  | %
Interest income | $ | 574 |  |  | $ | 598 |  |  | $ | 347 |  |  | $ | 378 |  |  | $ | 404 |  |  | $ | (24) |  |  | (4) | % |  | $ | 170 |  |  | 42 | % |  | $ | 1,898 |  |  | $ | 1,624 |  |  | $ | 274 |  |  | 17 | %
Interest expense | 53 |  |  | 66 |  |  | 41 |  |  | 76 |  |  | 93 |  |  | (13) |  |  | (20) |  |  | (40) |  |  | (43) |  |  | 235 |  |  | 414 |  |  | (179) |  |  | (43) |
Net interest income | 522 |  |  | 532 |  |  | 305 |  |  | 303 |  |  | 311 |  |  | (11) |  |  | (2) |  |  | 210 |  |  | 68 |  |  | 1,662 |  |  | 1,210 |  |  | 452 |  |  | 37 |
Noninterest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income | 104 |  |  | 111 |  |  | 112 |  |  | 96 |  |  | 81 |  |  | (7) |  |  | (6) |  |  | 23 |  |  | 28 |  |  | 423 |  |  | 279 |  |  | 144 |  |  | 52 |
Mortgage banking and title | 57 |  |  | 66 |  |  | 4 |  |  | 2 |  |  | 4 |  |  | (8) |  |  | (13) |  |  | 54 |  |  | NM |  | 129 |  |  | 10 |  |  | 119 |  |  | NM
Brokerage, trust, and insurance | 31 |  |  | 30 |  |  | 22 |  |  | 23 |  |  | 22 |  |  | 2 |  |  | 5 |  |  | 9 |  |  | 41 |  |  | 107 |  |  | 87 |  |  | 20 |  |  | 23 |
Service charges and fees | 53 |  |  | 50 |  |  | 35 |  |  | 36 |  |  | 39 |  |  | 3 |  |  | 5 |  |  | 14 |  |  | 36 |  |  | 174 |  |  | 153 |  |  | 21 |  |  | 14 |
Card and digital banking fees | 18 |  |  | 17 |  |  | 12 |  |  | 12 |  |  | 14 |  |  | 2 |  |  | 11 |  |  | 5 |  |  | 35 |  |  | 59 |  |  | 50 |  |  | 9 |  |  | 19 |
Deferred compensation income | 9 |  |  | 4 |  |  | 8 |  |  | (10) |  |  | 3 |  |  | 5 |  |  | 123 |  |  | 5 |  |  | NM |  | 11 |  |  | 11 |  |  | — |  |  | (2) |
Other noninterest income 1 | 16 |  |  | 546 |  |  | 12 |  |  | 15 |  |  | 20 |  |  | (530) |  |  | (97) |  |  | (4) |  |  | (22) |  |  | 589 |  |  | 64 |  |  | 525 |  |  | NM
Total noninterest income | 288 |  |  | 823 |  |  | 206 |  |  | 175 |  |  | 183 |  |  | (534) |  |  | (65) |  |  | 105 |  |  | 57 |  |  | 1,492 |  |  | 654 |  |  | 838 |  |  | 128 |
Total revenue | 810 |  |  | 1,355 |  |  | 512 |  |  | 478 |  |  | 495 |  |  | (545) |  |  | (40) |  |  | 315 |  |  | 64 |  |  | 3,155 |  |  | 1,864 |  |  | 1,291 |  |  | 69 |
Noninterest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits | 200 |  |  | 201 |  |  | 111 |  |  | 113 |  |  | 112 |  |  | (1) |  |  | — |  |  | 88 |  |  | 79 |  |  | 625 |  |  | 454 |  |  | 171 |  |  | 38 |
Incentives and commissions | 110 |  |  | 126 |  |  | 79 |  |  | 81 |  |  | 63 |  |  | (15) |  |  | (12) |  |  | 47 |  |  | 75 |  |  | 396 |  |  | 228 |  |  | 168 |  |  | 73 |
Deferred compensation expense | 9 |  |  | 3 |  |  | 9 |  |  | (10) |  |  | 4 |  |  | 6 |  |  | NM |  | 5 |  |  | 132 |  |  | 11 |  |  | 13 |  |  | (2) |  |  | (15) |
Total personnel expense | 319 |  |  | 329 |  |  | 200 |  |  | 183 |  |  | 179 |  |  | (10) |  |  | (3) |  |  | 141 |  |  | 79 |  |  | 1,033 |  |  | 695 |  |  | 338 |  |  | 49 |
Occupancy and equipment | 76 |  |  | 77 |  |  | 46 |  |  | 44 |  |  | 44 |  |  | — |  |  | (1) |  |  | 32 |  |  | 73 |  |  | 243 |  |  | 175 |  |  | 68 |  |  | 39 |
Outside services | 59 |  |  | 78 |  |  | 38 |  |  | 38 |  |  | 54 |  |  | (19) |  |  | (24) |  |  | 5 |  |  | 8 |  |  | 213 |  |  | 190 |  |  | 23 |  |  | 12 |
Amortization of intangible assets | 15 |  |  | 15 |  |  | 5 |  |  | 5 |  |  | 6 |  |  | — |  |  | — |  |  | 8 |  |  | 136 |  |  | 40 |  |  | 25 |  |  | 15 |  |  | 61 |
Other noninterest expense | 39 |  |  | 89 |  |  | 31 |  |  | 31 |  |  | 45 |  |  | (50) |  |  | (56) |  |  | (6) |  |  | (14) |  |  | 189 |  |  | 148 |  |  | 41 |  |  | 28 |
Total noninterest expense | 508 |  |  | 587 |  |  | 321 |  |  | 302 |  |  | 328 |  |  | (79) |  |  | (13) |  |  | 180 |  |  | 55 |  |  | 1,718 |  |  | 1,233 |  |  | 485 |  |  | 39 |
Pre-provision net revenue 2 | 302 |  |  | 768 |  |  | 191 |  |  | 175 |  |  | 166 |  |  | (466) |  |  | (61) |  |  | 136 |  |  | 82 |  |  | 1,436 |  |  | 631 |  |  | 805 |  |  | 128 |
Provision for credit losses 3 | 1 |  |  | 227 |  |  | 121 |  |  | 154 |  |  | 9 |  |  | (226) |  |  | (100) |  |  | (8) |  |  | (89) |  |  | 503 |  |  | 45 |  |  | 458 |  |  | NM
Income before income taxes | 301 |  |  | 541 |  |  | 69 |  |  | 21 |  |  | 157 |  |  | (240) |  |  | (44) |  |  | 144 |  |  | 92 |  |  | 933 |  |  | 586 |  |  | 347 |  |  | 59 |
Provision for income taxes | 56 |  |  | 2 |  |  | 13 |  |  | 5 |  |  | 36 |  |  | 54 |  |  | NM |  | 20 |  |  | 57 |  |  | 76 |  |  | 133 |  |  | (57) |  |  | (43) |
Net income | 245 |  |  | 539 |  |  | 57 |  |  | 16 |  |  | 121 |  |  | (294) |  |  | (55) |  |  | 124 |  |  | 102 |  |  | 857 |  |  | 452 |  |  | 405 |  |  | 89 |
Net income attributable to noncontrolling interest | 3 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | — |  |  | (5) |  |  | — |  |  | (3) |  |  | 12 |  |  | 11 |  |  | 1 |  |  | 5 |
Net income attributable to controlling interest | 242 |  |  | 536 |  |  | 54 |  |  | 14 |  |  | 118 |  |  | (294) |  |  | (55) |  |  | 124 |  |  | 104 |  |  | 845 |  |  | 441 |  |  | 404 |  |  | 92 |
Preferred stock dividends | 8 |  |  | 13 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | (5) |  |  | (40) |  |  | 6 |  |  | NM |  | 23 |  |  | 6 |  |  | 17 |  |  | NM
Net income available to common shareholders | $ | 234 |  |  | $ | 523 |  |  | $ | 52 |  |  | $ | 12 |  |  | $ | 117 |  |  | $ | (289) |  |  | (55) | % |  | $ | 118 |  |  | 101 | % |  | $ | 822 |  |  | $ | 435 |  |  | $ | 387 |  |  | 89 | %
Common Share Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS | $ | 0.42 |  |  | $ | 0.95 |  |  | $ | 0.17 |  |  | $ | 0.04 |  |  | $ | 0.38 |  |  | $ | (0.53) |  |  | (56) |  |  | $ | 0.04 |  |  | 11 |  |  | $ | 1.90 |  |  | $ | 1.39 |  |  | $ | 0.51 |  |  | 37 |
Basic shares | 553 |  |  | 550 |  |  | 312 |  |  | 312 |  |  | 311 |  |  | 3 |  |  | 1 |  |  | 242 |  |  | 78 |  |  | 432 |  |  | 314 |  |  | 118 |  |  | 38 |
Diluted EPS | $ | 0.42 |  |  | $ | 0.95 |  |  | $ | 0.17 |  |  | $ | 0.04 |  |  | $ | 0.37 |  |  | $ | (0.53) |  |  | (56) |  |  | $ | 0.05 |  |  | 14 |  |  | $ | 1.89 |  |  | $ | 1.38 |  |  | $ | 0.51 |  |  | 37 |
Diluted shares | 557 |  |  | 551 |  |  | 313 |  |  | 313 |  |  | 313 |  |  | 6 |  |  | 1 |  |  | 244 |  |  | 78 |  |  | 434 |  |  | 316 |  |  | 118 |  |  | 37 |
Effective tax rate | 18.7 | % |  | 0.4 | % |  | 18.4 | % |  | 22.4 | % |  | 22.9 | % |  |  |  |  |  |  |  |  |  | 8.2 | % |  | 22.8 | % |  |  |  |

Numbers may not foot due to rounding.
See footnote disclosures on page 21.
8

ADJUSTED 4 FINANCIAL DATA - SEE NOTABLE ITEMS ON PAGE 10
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 4Q20 Change vs. |  |  |  |  |  |  |
($s in millions, except per share data) | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q20 |  | 4Q19 |  | 2020 |  | 2019 |  | 2020 vs. 2019
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |  |  |  |  |  | $ |  | %
Adjusted noninterest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income | $ | 104 |  |  | $ | 111 |  |  | $ | 112 |  |  | $ | 96 |  |  | $ | 81 |  |  | $ | (7) |  |  | (6) | % |  | $ | 23 |  |  | 28 | % |  | $ | 423 |  |  | $ | 279 |  |  | $ | 144 |  |  | 52 | %
Mortgage banking and title | 57 |  |  | 66 |  |  | 4 |  |  | 2 |  |  | 4 |  |  | (9) |  |  | (13) |  |  | 53 |  |  | NM |  | 129 |  |  | 10 |  |  | 119 |  |  | NM
Brokerage, trust, and insurance | 31 |  |  | 30 |  |  | 22 |  |  | 23 |  |  | 22 |  |  | 1 |  |  | 5 |  |  | 9 |  |  | 43 |  |  | 107 |  |  | 87 |  |  | 20 |  |  | 23 |
Service charges and fees | 53 |  |  | 50 |  |  | 35 |  |  | 36 |  |  | 39 |  |  | 3 |  |  | 6 |  |  | 14 |  |  | 36 |  |  | 174 |  |  | 153 |  |  | 21 |  |  | 14 |
Card and digital banking fees | 18 |  |  | 17 |  |  | 12 |  |  | 12 |  |  | 14 |  |  | 1 |  |  | 8 |  |  | 4 |  |  | 31 |  |  | 59 |  |  | 50 |  |  | 10 |  |  | 19 |
Deferred compensation income | 9 |  |  | 4 |  |  | 8 |  |  | (10) |  |  | 3 |  |  | 5 |  |  | 123 |  |  | 5 |  |  | NM |  | 11 |  |  | 11 |  |  | — |  |  | (2) |
Adjusted other noninterest income | 15 |  |  | 14 |  |  | 12 |  |  | 15 |  |  | 20 |  |  | 1 |  |  | 7 |  |  | (5) |  |  | (25) |  |  | 56 |  |  | 64 |  |  | (9) |  |  | (13) |
Adjusted total noninterest income | $ | 288 |  |  | $ | 291 |  |  | $ | 206 |  |  | $ | 175 |  |  | $ | 183 |  |  | $ | (4) |  |  | (1) | % |  | $ | 105 |  |  | 57 | % |  | $ | 960 |  |  | $ | 654 |  |  | $ | 305 |  |  | 47 | %
Adjusted noninterest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted personnel expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted salaries and benefits | $ | 200 |  |  | $ | 200 |  |  | $ | 107 |  |  | $ | 112 |  |  | $ | 107 |  |  | $ | — |  |  | — | % |  | $ | 93 |  |  | 87 | % |  | $ | 619 |  |  | $ | 449 |  |  | $ | 170 |  |  | 38 | %
Adjusted Incentives and commissions | 89 |  |  | 91 |  |  | 79 |  |  | 81 |  |  | 63 |  |  | (2) |  |  | (2) | % |  | 26 |  |  | 42 |  |  | 341 |  |  | 219 |  |  | 121 |  |  | 55 |
Deferred compensation expense | 9 |  |  | 3 |  |  | 9 |  |  | (10) |  |  | 4 |  |  | 6 |  |  | NM |  | 5 |  |  | 125 |  |  | 11 |  |  | 13 |  |  | (2) |  |  | (15) |
Adjusted total personnel expense | 298 |  |  | 294 |  |  | 195 |  |  | 182 |  |  | 174 |  |  | 4 |  |  | 1 | % |  | 124 |  |  | 71 |  |  | 971 |  |  | 680 |  |  | 291 |  |  | 43 |
Adjusted occupancy and equipment | 74 |  |  | 73 |  |  | 46 |  |  | 44 |  |  | 44 |  |  | 1 |  |  | 2 | % |  | 30 |  |  | 69 |  |  | 238 |  |  | 172 |  |  | 66 |  |  | 38 |
Adjusted outside services | 52 |  |  | 46 |  |  | 33 |  |  | 37 |  |  | 36 |  |  | 6 |  |  | 13 | % |  | 16 |  |  | 44 |  |  | 166 |  |  | 143 |  |  | 23 |  |  | 16 |
Adjusted amortization of intangible assets | 14 |  |  | 14 |  |  | 5 |  |  | 5 |  |  | 6 |  |  | — |  |  | (2) | % |  | 8 |  |  | 128 |  |  | 38 |  |  | 25 |  |  | 13 |  |  | 52 |
Adjusted other noninterest expense | 35 |  |  | 45 |  |  | 27 |  |  | 28 |  |  | 31 |  |  | (10) |  |  | (22) | % |  | 4 |  |  | 13 |  |  | 136 |  |  | 98 |  |  | 38 |  |  | 39 |
Adjusted total noninterest expense | $ | 474 |  |  | $ | 471 |  |  | $ | 307 |  |  | $ | 296 |  |  | $ | 291 |  |  | $ | 3 |  |  | 1 | % |  | $ | 183 |  |  | 63 | % |  | $ | 1,549 |  |  | $ | 1,119 |  |  | $ | 429 |  |  | 38 | %
Adjusted pre-provision net revenue 4 | $ | 335 |  |  | $ | 352 |  |  | $ | 205 |  |  | $ | 181 |  |  | $ | 203 |  |  | $ | (17) |  |  | (5) | % |  | $ | 132 |  |  | 65 | % |  | $ | 1,073 |  |  | $ | 745 |  |  | $ | 328 |  |  | 44 | %
Adjusted provision for credit losses 3 | $ | 1 |  |  | $ | 80 |  |  | $ | 121 |  |  | $ | 154 |  |  | $ | 9 |  |  | $ | (79) |  |  | (99) | % |  | $ | (8) |  |  | (89) | % |  | $ | 356 |  |  | $ | 45 |  |  | $ | 311 |  |  | NM
Adjusted net income available to common shareholders | $ | 255 |  |  | $ | 193 |  |  | $ | 64 |  |  | $ | 17 |  |  | $ | 147 |  |  | $ | 62 |  |  | 32 | % |  | $ | 108 |  |  | 73 | % |  | $ | 528 |  |  | $ | 525 |  |  | $ | 3 |  |  | 1 | %
Adjusted Common Share Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted diluted EPS | $ | 0.46 |  |  | $ | 0.35 |  |  | $ | 0.20 |  |  | $ | 0.05 |  |  | $ | 0.47 |  |  | $ | 0.11 |  |  | 31 | % |  | $ | (0.01) |  |  | (2) | % |  | $ | 1.22 |  |  | $ | 1.66 |  |  | $ | (0.45) |  |  | (27) | %
Diluted shares | 557 |  |  | 551 |  |  | 313 |  |  | 313 |  |  | 313 |  |  | 6 |  |  | 1 | % |  | 244 |  |  | 78 | % |  | 434 |  |  | 316 |  |  | 118 |  |  | 37 | %
Adjusted effective tax rate | 20.7 | % |  | 23.3 | % |  | 18.3 | % |  | 22.2 | % |  | 22.2 | % |  |  |  |  |  |  |  |  |  | 21.5 | % |  | 22.5 | % |  |  |  |

Numbers may not foot due to rounding.
See footnote disclosures on page 21.
9

NOTABLE ITEMS
Quarterly and Year-end, Unaudited

(In millions) | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 2020 |  | 2019
Summary of Notable Items: |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase accounting gain | $ | 1 |  |  | $ | 532 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 533 |  |  | $ | — |
Merger/acquisition non-PCD provision expense | — |  |  | (147) |  |  | — |  |  | — |  |  | — |  |  | (147) |  |  | — |
Merger/acquisition expense* | (34) |  |  | (101) |  |  | (14) |  |  | (6) |  |  | (16) |  |  | (155) |  |  | (39) |
Charitable contributions | — |  |  | (15) |  |  | — |  |  | — |  |  | (11) |  |  | (15) |  |  | (11) |
Other notable expenses | — |  |  | — |  |  | — |  |  | — |  |  | (10) |  |  | — |  |  | (64) |
Total notable items | $ | (33) |  |  | $ | 269 |  |  | $ | (14) |  |  | $ | (6) |  |  | $ | (37) |  |  | $ | 216 |  |  | $ | (114) |

Numbers may not foot due to rounding
•3Q20 includes $20 million of charitable contributions to establish the First Horizon Louisiana Foundation.

IMPACT OF NOTABLE ITEMS:
Quarterly and Year-end, Unaudited

(In millions) | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 2020 |  | 2019
Impacts of Notable Items: |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest income: |  |  |  |  |  |  |  |  |  |  |  |  |
Other noninterest income | $ | (1) |  |  | $ | (532) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (533) |  |  | $ | — |
Total noninterest income | $ | (1) |  |  | $ | (532) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (533) |  |  | $ | — |
Noninterest expense: |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits | $ | — |  |  | $ | (1) |  |  | $ | (5) |  |  | $ | (1) |  |  | $ | (4) |  |  | $ | (7) |  |  | $ | (5) |
Incentives and commissions | (21) |  |  | (34) |  |  | — |  |  | — |  |  | — |  |  | (55) |  |  | (10) |
Deferred compensation expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total personnel expenses | (21) |  |  | (35) |  |  | (5) |  |  | (1) |  |  | (4) |  |  | (62) |  |  | (15) |
Occupancy and equipment | (2) |  |  | (4) |  |  | — |  |  | — |  |  | — |  |  | (6) |  |  | (3) |
Outside services | (7) |  |  | (32) |  |  | (5) |  |  | (2) |  |  | (18) |  |  | (46) |  |  | (48) |
Amortization of intangible assets | (1) |  |  | (1) |  |  | — |  |  | — |  |  | — |  |  | (2) |  |  | — |
Other noninterest expense | (4) |  |  | (44) |  |  | (4) |  |  | (3) |  |  | (15) |  |  | (54) |  |  | (49) |
Total noninterest expense | $ | (34) |  |  | $ | (116) |  |  | $ | (14) |  |  | $ | (6) |  |  | $ | (37) |  |  | $ | (170) |  |  | $ | (114) |
Provision for credit losses | $ | — |  |  | $ | (147) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (147) |  |  | $ | — |
Income before income taxes | $ | 33 |  |  | $ | (269) |  |  | $ | 14 |  |  | $ | 6 |  |  | $ | 37 |  |  | $ | (216) |  |  | $ | 114 |
Provision for income taxes | 13 |  |  | 61 |  |  | 3 |  |  | 1 |  |  | 7 |  |  | 78 |  |  | 24 |
Net income/(loss) available to common shareholders | $ | 20 |  |  | $ | (331) |  |  | $ | 12 |  |  | $ | 5 |  |  | $ | 30 |  |  | $ | (294) |  |  | $ | 90 |

Numbers may not foot due to rounding

10

FINANCIAL RATIOS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly and Year-end, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | 4Q20 change vs. |  |  |  |  |  | 2020 vs. 2019
| 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q20 | 4Q19 |  | 2020 |  | 2019 |
FINANCIAL RATIOS |  |  |  |  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |  |  |  |  |  | $/bp |  | %
Net interest margin | 2.71 | % |  | 2.84 | % |  | 2.90 | % |  | 3.16 | % |  | 3.26 | % |  | (13) | bp |  |  |  | (55) | bp |  |  |  | 2.86 | % |  | 3.28 | % |  | (42) | bp |  |
Return on average assets | 1.16 | % |  | 2.63 | % |  | 0.48 | % |  | 0.15 | % |  | 1.12 | % |  | (147) |  |  |  |  | 4 |  |  |  |  | 1.33 | % |  | 1.08 | % |  | 25 |  |  |
Adjusted return on average assets 4 | 1.26 | % |  | 1.01 | % |  | 0.57 | % |  | 0.19 | % |  | 1.40 | % |  | 25 |  |  |  |  | (14) |  |  |  |  | 0.87 | % |  | 1.30 | % |  | (43) |  |  |
Return on average common equity (“ROCE”) | 12.53 | % |  | 28.49 | % |  | 4.50 | % |  | 1.05 | % |  | 9.97 | % |  | (1,596) |  |  |  |  | 256 |  |  |  |  | 13.66 | % |  | 9.60 | % |  | 406 |  |  |
Return on average tangible common equity (“ROTCE”)4 | 16.73 | % |  | 37.75 | % |  | 6.74 | % |  | 1.59 | % |  | 15.03 | % |  | (2,102) |  |  |  |  | 170 |  |  |  |  | 19.03 | % |  | 14.71 | % |  | 432 |  |  |
Adjusted ROTCE 4 | 18.18 | % |  | 13.90 | % |  | 8.26 | % |  | 2.19 | % |  | 18.88 | % |  | 428 |  |  |  |  | (70) |  |  |  |  | 12.15 | % |  | 17.60 | % |  | (545) |  |  |
Noninterest income as a % of total revenue | 35.61 | % |  | 60.72 | % |  | 40.32 | % |  | 36.59 | % |  | 37.05 | % |  | (2,511) |  |  |  |  | (144) |  |  |  |  | 47.31 | % |  | 35.09 | % |  | 1,222 |  |  |
Adjusted noninterest income as a % of total revenue 4 | 35.56 | % |  | 35.32 | % |  | 40.32 | % |  | 36.59 | % |  | 37.05 | % |  | 24 |  |  |  |  | (149) |  |  |  |  | 36.60 | % |  | 35.09 | % |  | 151 |  |  |
Efficiency ratio | 62.71 | % |  | 43.31 | % |  | 62.74 | % |  | 63.26 | % |  | 66.35 | % |  | 1,940 |  |  |  |  | (364) |  |  |  |  | 54.47 | % |  | 66.15 | % |  | (1,168) |  |  |
Adjusted efficiency ratio 4 | 58.57 | % |  | 57.26 | % |  | 59.95 | % |  | 62.05 | % |  | 58.88 | % |  | 131 |  |  |  |  | (31) |  |  |  |  | 59.06 | % |  | 60.02 | % |  | (96) |  |  |
CAPITAL - PERIOD END (PRELIMINARY) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CET1 capital ratio | 9.67 | % |  | 9.21 | % |  | 9.25 | % |  | 8.54 | % |  | 9.20 | % |  | 46 | bp |  |  |  | 47 | bp |  |  |  | 9.67 | % |  | 9.20 | % |  | 47 | bp |  |
Tier 1 capital ratio | 10.73 | % |  | 10.25 | % |  | 10.69 | % |  | 9.52 | % |  | 10.15 | % |  | 48 | bp |  |  |  | 58 | bp |  |  |  | 10.73 | % |  | 10.15 | % |  | 58 | bp |  |
Total capital ratio | 12.55 | % |  | 12.05 | % |  | 12.47 | % |  | 10.78 | % |  | 11.22 | % |  | 50 | bp |  |  |  | 133 | bp |  |  |  | 12.55 | % |  | 11.22 | % |  | 133 | bp |  |
Tier 1 leverage ratio | 8.24 | % |  | 8.25 | % |  | 8.55 | % |  | 9.00 | % |  | 9.04 | % |  | (1) | bp |  |  |  | (80) | bp |  |  |  | 8.24 | % |  | 9.04 | % |  | (80) | bp |  |
Risk-weighted assets (“RWA”) (billions) | $ | 63.2 |  |  | $ | 64.5 |  |  | $ | 37.4 |  |  | $ | 40.1 |  |  | $ | 37.0 |  |  | $ | (1) |  |  | (2) |  |  | $ | 26 |  |  | 71 |  |  | $ | 63.2 |  |  | $ | 37.0 |  |  | $ | 26 |  |  | 70 |
Total equity to total assets | 9.86 | % |  | 9.81 | % |  | 10.71 | % |  | 10.71 | % |  | 11.72 | % |  | 5 | bp |  |  |  | (186) | bp |  |  |  | 9.86 | % |  | 11.72 | % |  | (186) | bp |  |
Tangible common equity/tangible assets (“TCE/TA”)4 | 6.89 | % |  | 6.78 | % |  | 6.63 | % |  | 6.81 | % |  | 7.48 | % |  | 11 | bp |  |  |  | (59) | bp |  |  |  | 6.89 | % |  | 7.48 | % |  | (59) | bp |  |
Period-end shares outstanding (millions) | 555 |  |  | 555 |  |  | 312 |  |  | 312 |  |  | 311 |  |  | — |  |  | — |  |  | 244 |  |  | 78 |  |  | 555 |  |  | 311 |  |  | 244 |  |  | 78 |
Cash dividends declared per common share | $ | 0.15 |  |  | $ | 0.15 |  |  | $ | 0.15 |  |  | $ | 0.15 |  |  | $ | 0.14 |  |  | $ | — |  |  | — |  |  | $ | 0.01 |  |  | 7 |  |  | 0.60 |  |  | 0.56 |  |  | $ | 0.04 |  |  | 7 |
Book value per common share | $ | 13.59 |  |  | $ | 13.30 |  |  | $ | 14.96 |  |  | $ | 14.96 |  |  | $ | 15.04 |  |  | $ | 0.29 |  |  | 2 |  |  | $ | (1.45) |  |  | (10) |  |  | $ | 13.59 |  |  | $ | 15.04 |  |  | $ | (1.45) |  |  | (10) |
Tangible book value per common share 4 | $ | 10.23 |  |  | $ | 9.92 |  |  | $ | 9.99 |  |  | $ | 9.96 |  |  | $ | 10.02 |  |  | $ | 0.31 |  |  | 3 |  |  | $ | 0.21 |  |  | 2 |  |  | $ | 10.23 |  |  | $ | 10.02 |  |  | $ | 0.21 |  |  | 2 |
SELECTED BALANCE SHEET DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans-to-deposit ratio (period-end balances) | 83.21 | % |  | 87.28 | % |  | 86.62 | % |  | 96.97 | % |  | 95.78 | % |  | (407) | bp |  |  |  | (1,257) | bp |  |  |  | 83.21 | % |  | 95.78 | % |  | (1,257) | bp |  |
Loans-to-deposit ratio (average balances) | 85.90 | % |  | 89.59 | % |  | 90.52 | % |  | 92.83 | % |  | 93.68 | % |  | (369) | bp |  |  |  | (778) | bp |  |  |  | 89.02 | % |  | 90.08 | % |  | (106) | bp |  |
Full-time equivalent associates | 8,466 |  |  | 8,121 |  |  | 5,006 |  |  | 4,969 |  |  | 5,005 |  |  | 345 |  |  | 4 |  |  | 3,461 |  |  | 69 | % |  | 6,649 |  |  | 5,231 |  |  | 1,418 |  |  | 27 |

Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 21.
11

CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 4Q20 change vs.
(In millions) | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q20 |  |  | 4Q19
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  |  | $ |  | % |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) | $ | 33,103 |  |  | $ | 33,656 |  |  | $ | 21,394 |  |  | $ | 22,124 |  |  | $ | 20,051 |  |  | $ | (552) |  |  | (2) | % |  |  | $ | 13,052 |  |  | 65 | % |
Commercial real estate | 12,275 |  |  | 12,511 |  |  | 4,813 |  |  | 4,640 |  |  | 4,337 |  |  | (236) |  |  | (2) |  |  |  | 7,938 |  |  | NM |
Total Commercial | 45,379 |  |  | 46,167 |  |  | 26,207 |  |  | 26,764 |  |  | 24,388 |  |  | (788) |  |  | (2) |  |  |  | 20,991 |  |  | 86 |  |
Consumer real estate | 11,725 |  |  | 12,328 |  |  | 6,052 |  |  | 6,119 |  |  | 6,177 |  |  | (603) |  |  | (5) |  |  |  | 5,548 |  |  | 90 |  |
Credit card and other 5 | 1,128 |  |  | 1,212 |  |  | 449 |  |  | 495 |  |  | 496 |  |  | (84) |  |  | (7) |  |  |  | 632 |  |  | 128 |  |
Total Consumer | 12,853 |  |  | 13,540 |  |  | 6,502 |  |  | 6,614 |  |  | 6,673 |  |  | (687) |  |  | (5) |  |  |  | 6,180 |  |  | 93 |  |
Loans and leases, net of unearned income | 58,232 |  |  | 59,707 |  |  | 32,709 |  |  | 33,378 |  |  | 31,061 |  |  | (1,475) |  |  | (2) |  |  |  | 27,171 |  |  | 87 |  |
Loans held for sale | 1,022 |  |  | 1,051 |  |  | 746 |  |  | 596 |  |  | 594 |  |  | (29) |  |  | (3) |  |  |  | 428 |  |  | 72 |  |
Investment securities | 8,057 |  |  | 8,006 |  |  | 5,486 |  |  | 4,555 |  |  | 4,455 |  |  | 51 |  |  | 1 |  |  |  | 3,602 |  |  | 81 |  |
Trading securities | 1,176 |  |  | 1,386 |  |  | 1,116 |  |  | 1,878 |  |  | 1,346 |  |  | (210) |  |  | (15) |  |  |  | (170) |  |  | (13) |  |
Interest-bearing deposits with banks | 8,351 |  |  | 5,443 |  |  | 3,136 |  |  | 671 |  |  | 482 |  |  | 2,908 |  |  | 53 |  |  |  | 7,869 |  |  | NM |
Federal funds sold and securities purchased under agreements to resell | 445 |  |  | 593 |  |  | 415 |  |  | 592 |  |  | 633 |  |  | (148) |  |  | (25) |  |  |  | (188) |  |  | (30) |  |
Total interest earning assets | 77,284 |  |  | 76,186 |  |  | 43,608 |  |  | 41,669 |  |  | 38,572 |  |  | 1,098 |  |  | 1 |  |  |  | 38,712 |  |  | 100 |  |
Cash and due from banks | 1,203 |  |  | 1,075 |  |  | 604 |  |  | 538 |  |  | 634 |  |  | 129 |  |  | 12 |  |  |  | 569 |  |  | 90 |  |
Goodwill and other intangible assets, net | 1,864 |  |  | 1,876 |  |  | 1,552 |  |  | 1,558 |  |  | 1,563 |  |  | (12) |  |  | (1) |  |  |  | 301 |  |  | 19 |  |
Premises and equipment, net | 759 |  |  | 756 |  |  | 448 |  |  | 448 |  |  | 455 |  |  | 3 |  |  | — |  |  |  | 304 |  |  | 67 |  |
Allowance for loan and lease losses 6 | (963) |  |  | (988) |  |  | (538) |  |  | (444) |  |  | (200) |  |  | 25 |  |  | 3 |  |  |  | (763) |  |  | NM |
Other assets | 4,063 |  |  | 4,125 |  |  | 2,970 |  |  | 3,429 |  |  | 2,287 |  |  | (62) |  |  | (2) |  |  |  | 1,776 |  |  | 78 |  |
Total assets | $ | 84,209 |  |  | $ | 83,030 |  |  | $ | 48,645 |  |  | $ | 47,197 |  |  | $ | 43,311 |  |  | $ | 1,180 |  |  | 1 | % |  |  | $ | 40,899 |  |  | 94 | % |
Liabilities and Shareholders' Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings | $ | 27,324 |  |  | $ | 26,573 |  |  | $ | 13,532 |  |  | $ | 13,860 |  |  | $ | 11,665 |  |  | $ | 751 |  |  | 3 | % |  |  | $ | 15,659 |  |  | 134 | % |
Time deposits | 5,070 |  |  | 5,526 |  |  | 2,656 |  |  | 3,058 |  |  | 3,618 |  |  | (455) |  |  | (8) |  |  |  | 1,452 |  |  | 40 |  |
Other interest-bearing deposits | 15,415 |  |  | 14,925 |  |  | 9,784 |  |  | 8,561 |  |  | 8,717 |  |  | 490 |  |  | 3 |  |  |  | 6,698 |  |  | 77 |  |
Total interest-bearing deposits | 47,810 |  |  | 47,025 |  |  | 25,972 |  |  | 25,480 |  |  | 24,001 |  |  | 785 |  |  | 2 |  |  |  | 23,809 |  |  | 99 |  |
Trading liabilities | 353 |  |  | 477 |  |  | 233 |  |  | 453 |  |  | 506 |  |  | (124) |  |  | (26) |  |  |  | (153) |  |  | (30) |  |
Short-term borrowings | 2,198 |  |  | 2,142 |  |  | 2,392 |  |  | 5,325 |  |  | 3,518 |  |  | 57 |  |  | 3 |  |  |  | (1,320) |  |  | (38) |  |
Term borrowings | 1,670 |  |  | 2,162 |  |  | 2,032 |  |  | 793 |  |  | 791 |  |  | (492) |  |  | (23) |  |  |  | 878 |  |  | 111 |  |
Total interest-bearing liabilities | 52,030 |  |  | 51,805 |  |  | 30,628 |  |  | 32,050 |  |  | 28,816 |  |  | 225 |  |  | — |  |  |  | 23,215 |  |  | 81 |  |
Noninterest-bearing deposits | 22,173 |  |  | 21,384 |  |  | 11,788 |  |  | 8,940 |  |  | 8,429 |  |  | 788 |  |  | 4 |  |  |  | 13,744 |  |  | NM |
Other liabilities | 1,699 |  |  | 1,696 |  |  | 1,020 |  |  | 1,152 |  |  | 990 |  |  | 4 |  |  | — |  |  |  | 709 |  |  | 72 |  |
Total liabilities | 75,903 |  |  | 74,885 |  |  | 43,436 |  |  | 42,142 |  |  | 38,235 |  |  | 1,017 |  |  | 1 |  |  |  | 37,668 |  |  | 99 |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stocks | 470 |  |  | 470 |  |  | 240 |  |  | 96 |  |  | 96 |  |  | — |  |  | — |  |  |  | 375 |  |  | NM |
Common stocks | 347 |  |  | 347 |  |  | 195 |  |  | 195 |  |  | 195 |  |  | — |  |  | — |  |  |  | 152 |  |  | 78 |  |
Capital surplus | 5,073 |  |  | 5,061 |  |  | 2,941 |  |  | 2,939 |  |  | 2,931 |  |  | 12 |  |  | — |  |  |  | 2,142 |  |  | 73 |  |
Retained earnings 6 | 2,261 |  |  | 2,111 |  |  | 1,672 |  |  | 1,667 |  |  | 1,798 |  |  | 150 |  |  | 7 |  |  |  | 463 |  |  | 26 |  |
Accumulated other comprehensive loss, net | (140) |  |  | (140) |  |  | (135) |  |  | (136) |  |  | (240) |  |  | — |  |  | — |  |  |  | 100 |  |  | 42 |  |
Combined shareholders' equity | 8,012 |  |  | 7,849 |  |  | 4,913 |  |  | 4,760 |  |  | 4,781 |  |  | 163 |  |  | 2 |  |  |  | 3,231 |  |  | 68 |  |
Noncontrolling interest | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | — |  |  | — |  |  |  | — |  |  | — |  |
Total shareholders' equity | 8,307 |  |  | 8,144 |  |  | 5,208 |  |  | 5,056 |  |  | 5,076 |  |  | 163 |  |  | 2 |  |  |  | 3,231 |  |  | 64 |  |
Total liabilities and shareholders' equity | $ | 84,209 |  |  | $ | 83,030 |  |  | $ | 48,645 |  |  | $ | 47,197 |  |  | $ | 43,311 |  |  | $ | 1,180 |  |  | 1 | % |  |  | $ | 40,899 |  |  | 94 | % |
Memo: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Deposits | $ | 69,982 |  |  | $ | 68,409 |  |  | $ | 37,759 |  |  | $ | 34,420 |  |  | $ | 32,430 |  |  | $ | 1,573 |  |  | 2 | % |  |  | $ | 37,553 |  |  | 116 | % |

Numbers may not foot due to rounding. Certain previously reported amounts have been reclassified to agree with current presentation. See footnote disclosures on page 21.
12

CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly and Year-end, Unaudited

|  |  |  |  |  |  |  |  |  |  | 4Q20 change vs. |  |  |  |  |  | 2020 vs. 2019
(In millions) | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q20 |  | 4Q19 |  | 2020 |  | 2019 |  |  |  |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |  |  |  |  |  | $ |  | %
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) | $ | 34,196 |  |  | $ | 34,051 |  |  | $ | 22,694 |  |  | $ | 19,470 |  |  | $ | 19,740 |  |  | $ | 145 |  |  | — | % |  | $ | 14,456 |  |  | 73 | % |  | $ | 27,655 |  |  | $ | 18,283 |  |  | $ | 9,372 |  |  | 51 | %
Commercial real estate | 12,400 |  |  | 12,414 |  |  | 4,710 |  |  | 4,422 |  |  | 4,264 |  |  | (14) |  |  | — |  |  | 8,136 |  |  | NM |  | 8,491 |  |  | 4,102 |  |  | 4,389 |  |  | 107 |
Total Commercial | 46,596 |  |  | 46,465 |  |  | 27,404 |  |  | 23,891 |  |  | 24,004 |  |  | 131 |  |  | — |  |  | 22,592 |  |  | 94 |  |  | 36,146 |  |  | 22,385 |  |  | 13,761 |  |  | 61 |
Consumer real estate | 12,030 |  |  | 12,444 |  |  | 6,087 |  |  | 6,134 |  |  | 6,194 |  |  | (413) |  |  | (3) |  |  | 5,836 |  |  | 94 |  |  | 9,191 |  |  | 6,103 |  |  | 3,088 |  |  | 51 |
Credit card and other 5 | 1,194 |  |  | 1,209 |  |  | 476 |  |  | 498 |  |  | 509 |  |  | (15) |  |  | (1) |  |  | 685 |  |  | 135 |  |  | 846 |  |  | 701 |  |  | 145 |  |  | 21 |
Total Consumer | 13,224 |  |  | 13,653 |  |  | 6,564 |  |  | 6,633 |  |  | 6,703 |  |  | (429) |  |  | (3) |  |  | 6,521 |  |  | 97 |  |  | 10,037 |  |  | 6,804 |  |  | 3,233 |  |  | 48 |
Loans and leases, net of unearned income | 59,820 |  |  | 60,118 |  |  | 33,968 |  |  | 30,524 |  |  | 30,706 |  |  | (298) |  |  | — |  |  | 29,113 |  |  | 95 |  |  | 46,183 |  |  | 29,189 |  |  | 16,994 |  |  | 58 |
Loans held-for-sale | 1,030 |  |  | 985 |  |  | 731 |  |  | 590 |  |  | 582 |  |  | 45 |  |  | 5 |  |  | 448 |  |  | 77 |  |  | 835 |  |  | 578 |  |  | 257 |  |  | 44 |
Investment securities | 8,213 |  |  | 8,590 |  |  | 4,541 |  |  | 4,467 |  |  | 4,448 |  |  | (377) |  |  | (4) |  |  | 3,765 |  |  | 85 |  |  | 6,464 |  |  | 4,510 |  |  | 1,954 |  |  | 43 |
Trading securities | 1,292 |  |  | 1,194 |  |  | 1,420 |  |  | 1,831 |  |  | 1,264 |  |  | 98 |  |  | 8 |  |  | 28 |  |  | 2 |  |  | 1,433 |  |  | 1,415 |  |  | 18 |  |  | 1 |
Interest-bearing deposits with banks | 6,201 |  |  | 3,616 |  |  | 1,620 |  |  | 548 |  |  | 586 |  |  | 2,585 |  |  | 71 |  |  | 5,614 |  |  | NM |  | 3,006 |  |  | 871 |  |  | 2,135 |  |  | NM
Federal funds sold and securities purchased under agreements to resell | 440 |  |  | 500 |  |  | 422 |  |  | 827 |  |  | 656 |  |  | (60) |  |  | (12) |  |  | (216) |  |  | (33) |  |  | 547 |  |  | 603 |  |  | (56) |  |  | (9) |
Total interest earning assets | 76,995 |  |  | 75,002 |  |  | 42,702 |  |  | 38,788 |  |  | 38,242 |  |  | 1,993 |  |  | 3 |  |  | 38,753 |  |  | 101 |  |  | 58,468 |  |  | 37,165 |  |  | 21,303 |  |  | 57 |
Cash and due from banks | 1,204 |  |  | 1,028 |  |  | 562 |  |  | 610 |  |  | 610 |  |  | 177 |  |  | 17 |  |  | 594 |  |  | 97 |  |  | 852 |  |  | 602 |  |  | 250 |  |  | 42 |
Goodwill and other intangibles assets, net | 1,871 |  |  | 1,794 |  |  | 1,555 |  |  | 1,560 |  |  | 1,566 |  |  | 77 |  |  | 4 |  |  | 305 |  |  | 19 |  |  | 1,696 |  |  | 1,575 |  |  | 121 |  |  | 8 |
Premises and equipment, net | 765 |  |  | 747 |  |  | 452 |  |  | 451 |  |  | 451 |  |  | 18 |  |  | 2 |  |  | 314 |  |  | 70 |  |  | 604 |  |  | 467 |  |  | 137 |  |  | 29 |
Allowances for loan and lease losses 6 | (985) |  |  | (980) |  |  | (476) |  |  | (354) |  |  | (196) |  |  | (5) |  |  | (1) |  |  | (789) |  |  | NM |  | (700) |  |  | (191) |  |  | (509) |  |  | NM
Other assets | 3,959 |  |  | 4,093 |  |  | 3,140 |  |  | 2,497 |  |  | 2,213 |  |  | (134) |  |  | (3) |  |  | 1,746 |  |  | 79 |  |  | 3,426 |  |  | 2,126 |  |  | 1,300 |  |  | 61 |
Total assets | $ | 83,809 |  |  | $ | 81,683 |  |  | $ | 47,934 |  |  | $ | 43,552 |  |  | $ | 42,886 |  |  | $ | 2,126 |  |  | 3 | % |  | $ | 40,923 |  |  | 95 | % |  | $ | 64,346 |  |  | $ | 41,744 |  |  | $ | 22,602 |  |  | 54 | %
Liabilities and shareholders' equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings | $ | 27,090 |  |  | $ | 25,648 |  |  | $ | 14,118 |  |  | $ | 12,117 |  |  | $ | 11,580 |  |  | $ | 1,442 |  |  | 6 | % |  | $ | 15,510 |  |  | 134 | % |  | $ | 19,780 |  |  | $ | 11,663 |  |  | $ | 8,117 |  |  | 70 | %
Time deposits | 5,386 |  |  | 5,783 |  |  | 2,836 |  |  | 3,357 |  |  | 3,934 |  |  | (396) |  |  | (7) |  |  | 1,453 |  |  | 37 |  |  | 4,347 |  |  | 4,262 |  |  | 85 |  |  | 2 |
Other interest-bearing deposits | 15,057 |  |  | 14,771 |  |  | 9,256 |  |  | 8,743 |  |  | 8,721 |  |  | 286 |  |  | 2 |  |  | 6,336 |  |  | 73 |  |  | 11,973 |  |  | 8,345 |  |  | 3,628 |  |  | 43 |
Total interest-bearing deposits | 47,534 |  |  | 46,202 |  |  | 26,211 |  |  | 24,216 |  |  | 24,235 |  |  | 1,332 |  |  | 3 |  |  | 23,299 |  |  | 96 |  |  | 36,100 |  |  | 24,270 |  |  | 11,830 |  |  | 49 |
Trading liabilities | 367 |  |  | 360 |  |  | 352 |  |  | 751 |  |  | 586 |  |  | 7 |  |  | 2 |  |  | (219) |  |  | (37) |  |  | 457 |  |  | 503 |  |  | (46) |  |  | (9) |
Short-term borrowings | 2,113 |  |  | 2,469 |  |  | 2,603 |  |  | 3,211 |  |  | 2,709 |  |  | (356) |  |  | (14) |  |  | (596) |  |  | (22) |  |  | 2,597 |  |  | 1,977 |  |  | 620 |  |  | 31 |
Term borrowings | 1,913 |  |  | 2,172 |  |  | 1,426 |  |  | 791 |  |  | 928 |  |  | (259) |  |  | (12) |  |  | 984 |  |  | 106 |  |  | 1,578 |  |  | 1,117 |  |  | 461 |  |  | 41 |
Total interest-bearing liabilities | 51,926 |  |  | 51,202 |  |  | 30,593 |  |  | 28,967 |  |  | 28,458 |  |  | 724 |  |  | 1 |  |  | 23,468 |  |  | 82 |  |  | 40,732 |  |  | 27,868 |  |  | 12,864 |  |  | 46 |
Noninterest-bearing deposits | 22,105 |  |  | 20,904 |  |  | 11,316 |  |  | 8,666 |  |  | 8,543 |  |  | 1,202 |  |  | 6 |  |  | 13,563 |  |  | NM |  | 15,779 |  |  | 8,133 |  |  | 7,646 |  |  | 94 |
Other liabilities | 1,568 |  |  | 1,505 |  |  | 908 |  |  | 915 |  |  | 845 |  |  | 63 |  |  | 4 |  |  | 723 |  |  | 86 |  |  | 1,226 |  |  | 823 |  |  | 403 |  |  | 49 |
Total liabilities | 75,600 |  |  | 73,611 |  |  | 42,816 |  |  | 38,550 |  |  | 37,846 |  |  | 1,989 |  |  | 3 |  |  | 37,754 |  |  | 100 |  |  | 57,737 |  |  | 36,823 |  |  | 20,914 |  |  | 57 |
Shareholders' Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock | 470 |  |  | 468 |  |  | 150 |  |  | 96 |  |  | 96 |  |  | 2 |  |  | 1 |  |  | 375 |  |  | NM |  | 297 |  |  | 96 |  |  | 201 |  |  | NM
Common stock | 347 |  |  | 345 |  |  | 195 |  |  | 195 |  |  | 195 |  |  | 2 |  |  | — |  |  | 152 |  |  | 78 |  |  | 271 |  |  | 196 |  |  | 75 |  |  | 38 |
Capital surplus | 5,902 |  |  | 5,041 |  |  | 2,941 |  |  | 2,935 |  |  | 2,928 |  |  | 861 |  |  | 17 |  |  | 2,973 |  |  | 102 |  |  | 4,215 |  |  | 2,960 |  |  | 1,255 |  |  | 42 |
Retained earnings 6 | 1,346 |  |  | 2,025 |  |  | 1,672 |  |  | 1,687 |  |  | 1,766 |  |  | (679) |  |  | (34) |  |  | (420) |  |  | (24) |  |  | 1,679 |  |  | 1,666 |  |  | 13 |  |  | 1 |
Accumulated other comprehensive loss, net | (151) |  |  | (103) |  |  | (135) |  |  | (206) |  |  | (240) |  |  | (48) |  |  | (47) |  |  | 90 |  |  | 37 |  |  | (149) |  |  | (293) |  |  | 144 |  |  | 49 |
Combined shareholders' equity | 7,914 |  |  | 7,777 |  |  | 4,822 |  |  | 4,707 |  |  | 4,744 |  |  | 137 |  |  | 2 |  |  | 3,170 |  |  | 67 |  |  | 6,313 |  |  | 4,625 |  |  | 1,688 |  |  | 36 |
Noncontrolling interest | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 295 |  |  | 295 |  |  | — |  |  | — |
Total shareholders' equity | 8,209 |  |  | 8,072 |  |  | 5,118 |  |  | 5,002 |  |  | 5,040 |  |  | 137 |  |  | 2 |  |  | 3,170 |  |  | 63 |  |  | 6,609 |  |  | 4,921 |  |  | 1,688 |  |  | 34 |
Total liabilities and shareholders' equity | $ | 83,809 |  |  | $ | 81,683 |  |  | $ | 47,934 |  |  | $ | 43,552 |  |  | $ | 42,886 |  |  | $ | 2,126 |  |  | 3 | % |  | $ | 40,923 |  |  | 95 | % |  | $ | 64,346 |  |  | $ | 41,744 |  |  | $ | 22,602 |  |  | 54 | %
Memo: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Deposits | $ | 69,639 |  |  | $ | 67,106 |  |  | $ | 37,526 |  |  | $ | 32,882 |  |  | $ | 32,777 |  |  | $ | 2,533 |  |  | 4 | % |  | $ | 36,862 |  |  | 112 | % |  | $ | 51,879 |  |  | $ | 32,403 |  |  | $ | 19,476 |  |  | 60 | %

Numbers may not foot due to rounding. Certain previously reported amounts have been reclassified to agree with current presentation. See footnote disclosures on page 21.
13

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCE SHEET: YIELDS AND RATES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly and Year-end, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4Q20 change vs. |  |  |  |  |  |  |  | 2020 vs. 2019
| 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q20 |  | 4Q19 |  | 2020 |  | 2019 |  |
(In millions, except rates) | Income/Expense |  | Rate |  | Income/Expense |  | Rate |  | Income/Expense |  | Rate |  | Income/Expense |  | Rate |  | Income/Expense |  | Rate |  | Income/Expense |  | Income/Expense |  | Income/Expense | Rate |  | Income/Expense | Rate |  | Income/Expense
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | % |  | $ | % |  |  |  |  |  |  |  | $ | %
Interest earning assets/Interest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and leases, net of unearned income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 406 |  |  | 3.46 |  |  | $ | 419 |  |  | 3.59 |  |  | $ | 243 |  |  | 3.56 |  |  | $ | 257 |  |  | 4.33 |  |  | $ | 280 |  |  | 4.63 |  |  | $ | (13) |  | (3) | % |  | $ | 125 |  | 45 | % |  | $ | 1,324 |  | 3.66 |  |  | $ | 1,091 |  | 4.87 |  |  | $ | 233 |  | 21 | %
Consumer | 129 |  |  | 3.89 |  |  | 141 |  |  | 4.11 |  |  | 65 |  |  | 4.00 |  |  | 71 |  |  | 4.33 |  |  | 76 |  |  | 4.51 |  |  | (12) |  | (9) |  |  | 53 |  | 69 |  |  | 406 |  | 4.05 |  |  | 311 |  | 4.57 |  |  | 95 |  | 31 |
Loans and leases, net of unearned income | 535 |  |  | 3.56 |  |  | 560 |  |  | 3.70 |  |  | 308 |  |  | 3.65 |  |  | 329 |  |  | 4.33 |  |  | 356 |  |  | 4.60 |  |  | (25) |  | (4) |  |  | 179 |  | 50 |  |  | 1,731 |  | 3.75 |  |  | 1,402 |  | 4.80 |  |  | 329 |  | 23 |
Loans held-for-sale | 8 |  |  | 3.22 |  |  | 8 |  |  | 3.36 |  |  | 7 |  |  | 3.61 |  |  | 7 |  |  | 4.67 |  |  | 7 |  |  | 4.85 |  |  | — |  | 4 |  |  | 1 |  | 19 |  |  | 30 |  | 3.60 |  |  | 31 |  | 5.39 |  |  | (1) |  | (2) |
Investment securities | 27 |  |  | 1.29 |  |  | 25 |  |  | 1.21 |  |  | 25 |  |  | 2.23 |  |  | 28 |  |  | 2.51 |  |  | 29 |  |  | 2.60 |  |  | 2 |  | 8 |  |  | (2) |  | (7) |  |  | 105 |  | 1.64 |  |  | 121 |  | 2.69 |  |  | (16) |  | (13) |
Trading securities | 7 |  |  | 2.05 |  |  | 6 |  |  | 2.08 |  |  | 9 |  |  | 2.48 |  |  | 13 |  |  | 2.91 |  |  | 10 |  |  | 3.01 |  |  | 1 |  | 10 |  |  | (3) |  | (34) |  |  | 35 |  | 2.44 |  |  | 47 |  | 3.33 |  |  | (12) |  | (26) |
Interest-bearing deposits with banks | 2 |  |  | 0.10 |  |  | 1 |  |  | 0.09 |  |  | — |  |  | 0.09 |  |  | 2 |  |  | 1.13 |  |  | 2 |  |  | 1.60 |  |  | 1 |  | 55 |  |  | — |  | (22) |  |  | 5 |  | 0.14 |  |  | 19 |  | 2.18 |  |  | (14) |  | (76) |
Federal funds sold and securities purchased under agreements | — |  |  | 0.03 |  |  | — |  |  | 0.04 |  |  | — |  |  | (0.06) |  |  | 2 |  |  | 1.13 |  |  | 3 |  |  | 1.52 |  |  | — |  | NM |  | (3) |  | (99) |  |  | 2 |  | 0.43 |  |  | 12 |  | 2.02 |  |  | (10) |  | (83) |
Interest income | $ | 578 |  |  | 2.99 |  |  | $ | 601 |  |  | 3.19 |  |  | $ | 349 |  |  | 3.29 |  |  | $ | 381 |  |  | 3.94 |  |  | $ | 407 |  |  | 4.22 |  |  | $ | (23) |  | (4) | % |  | $ | 171 |  | 42 | % |  | $ | 1,909 |  | 3.26 |  |  | 1,633 |  | 4.39 |  |  | $ | 276 |  | 17 | %
Interest bearing liabilities/Interest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings | $ | 18 |  |  | 0.27 |  |  | $ | 25 |  |  | 0.38 |  |  | $ | 13 |  |  | 0.36 |  |  | $ | 26 |  |  | 0.87 |  |  | $ | 30 |  |  | 1.04 |  |  | $ | (7) |  | (28) | % |  | $ | (12) |  | (40) | % |  | $ | 82 |  | 0.41 |  |  | $ | 144 |  | 1.24 |  |  | $ | (62) |  | (43) | %
Time deposits | 6 |  |  | 0.44 |  |  | 10 |  |  | 0.70 |  |  | 9 |  |  | 1.31 |  |  | 14 |  |  | 1.67 |  |  | 19 |  |  | 1.94 |  |  | (4) |  | (41) |  |  | (13) |  | (69) |  |  | 39 |  | 0.90 |  |  | 84 |  | 1.97 |  |  | (45) |  | (54) |
Other interest-bearing deposits | 7 |  |  | 0.18 |  |  | 7 |  |  | 0.20 |  |  | 3 |  |  | 0.13 |  |  | 14 |  |  | 0.65 |  |  | 18 |  |  | 0.81 |  |  | — |  | (2) |  |  | (11) |  | (62) |  |  | 31 |  | 0.26 |  |  | 79 |  | 0.94 |  |  | (48) |  | (61) |
Total interest-bearing deposits | 31 |  |  | 0.26 |  |  | 42 |  |  | 0.36 |  |  | 25 |  |  | 0.38 |  |  | 54 |  |  | 0.90 |  |  | 67 |  |  | 1.10 |  |  | (11) |  | (26) |  |  | (36) |  | (54) |  |  | 152 |  | 0.42 |  |  | 307 |  | 1.27 |  |  | (155) |  | (51) |
Trading liabilities | 1 |  |  | 0.78 |  |  | 1 |  |  | 0.77 |  |  | 1 |  |  | 1.11 |  |  | 3 |  |  | 1.76 |  |  | 3 |  |  | 2.02 |  |  | — |  | 2 |  |  | (2) |  | (76) |  |  | 6 |  | 1.24 |  |  | 13 |  | 2.48 |  |  | (7) |  | (56) |
Short-term borrowings | 1 |  |  | 0.23 |  |  | 1 |  |  | 0.20 |  |  | 1 |  |  | 0.22 |  |  | 10 |  |  | 1.24 |  |  | 12 |  |  | 1.74 |  |  | — |  | 22 |  |  | (11) |  | (90) |  |  | 14 |  | 0.53 |  |  | 41 |  | 2.08 |  |  | (27) |  | (65) |
Term borrowings | 20 |  |  | 4.16 |  |  | 22 |  |  | 3.98 |  |  | 14 |  |  | 3.96 |  |  | 8 |  |  | 4.01 |  |  | 10 |  |  | 4.52 |  |  | (2) |  | (10) |  |  | 10 |  | 99 |  |  | 64 |  | 4.02 |  |  | 53 |  | 4.77 |  |  | 11 |  | 21 |
Interest expense | 53 |  |  | 0.40 |  |  | 66 |  |  | 0.51 |  |  | 41 |  |  | 0.54 |  |  | 76 |  |  | 1.05 |  |  | 93 |  |  | 1.29 |  |  | (13) |  | (20) |  |  | (40) |  | (43) |  |  | 236 |  | 0.58 |  |  | 414 |  | 1.49 |  |  | (178) |  | (43) |
Net interest income - tax equivalent basis | 525 |  |  | 2.59 |  |  | 535 |  |  | 2.68 |  |  | 308 |  |  | 2.75 |  |  | 305 |  |  | 2.89 |  |  | 314 |  |  | 2.93 |  |  | (10) |  | (2) |  |  | 211 |  | 67 |  |  | 1,673 |  | 2.68 |  |  | 1,219 |  | 2.90 |  |  | 454 |  | 37 |
Fully taxable equivalent adjustment | (3) |  |  | 0.12 |  |  | (3) |  |  | 0.16 |  |  | (3) |  |  | 0.15 |  |  | (2) |  |  | 0.27 |  |  | (2) |  |  | 0.33 |  |  | — |  | (7) |  |  | (1) |  | (60) |  |  | (11) |  | 0.18 |  |  | (9) |  | 0.38 |  |  | (2) |  | (24) |
Net interest income | $ | 522 |  |  | 2.71 |  |  | $ | 532 |  |  | 2.84 |  |  | $ | 305 |  |  | 2.90 |  |  | $ | 303 |  |  | 3.16 |  |  | $ | 311 |  |  | 3.26 |  |  | $ | (10) |  | (2) | % |  | $ | 211 |  | 68 | % |  | $ | 1,662 |  | 2.86 |  |  | $ | 1,210 |  | 3.28 |  |  | $ | 452 |  | 37 | %

Net interest income and yields are adjusted to a fully taxable equivalent (“FTE”) basis assuming a statutory federal income tax of 21 percent and, where applicable, state income taxes.
Earning assets yields are expressed net of unearned income.
Loan yields include loan fees, cash basis interest income, and loans on nonaccrual status.
Numbers may not foot due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 21.
14

CONSOLIDATED NONPERFORMING LOANS AND LEASES ("NPL") |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of |  | 4Q20 change vs. |
(In millions, except ratio data) |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q20 |  | 4Q19 |
|  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Nonperforming loans and leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | 144 |  |  | $ | 213 |  |  | $ | 127 |  |  | $ | 96 |  |  | $ | 74 |  |  | $ | (69) |  |  | (33) | % |  | $ | 69 |  |  | 93 | % |
Commercial real estate |  | 58 |  |  | 51 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 7 |  |  | 14 |  |  | 57 |  |  | NM |
Consumer real estate |  | 182 |  |  | 180 |  |  | 96 |  |  | 91 |  |  | 86 |  |  | 2 |  |  | 1 |  |  | 97 |  |  | 113 |  |
Credit card and other |  | 2 |  |  | 3 |  |  | — |  |  | — |  |  | — |  |  | (1) |  |  | (30) |  |  | 2 |  |  | NM |
Total nonperforming loans and leases |  | $ | 386 |  |  | $ | 447 |  |  | $ | 226 |  |  | $ | 190 |  |  | $ | 162 |  |  | $ | (60) |  |  | (14) | % |  | $ | 224 |  |  | 138 | % |
Asset Quality Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonperforming loans and leases to loans and leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 0.43 | % |  | 0.63 | % |  | 0.60 | % |  | 0.43 | % |  | 0.37 | % |  |  |  |  |  |  |  |  |
Commercial real estate |  | 0.48 |  |  | 0.41 |  |  | 0.04 |  |  | 0.05 |  |  | 0.04 |  |  |  |  |  |  |  |  |  |
Consumer real estate |  | 1.56 |  |  | 1.46 |  |  | 1.59 |  |  | 1.49 |  |  | 1.39 |  |  |  |  |  |  |  |  |  |
Credit card and other |  | 0.18 |  |  | 0.24 |  |  | 0.06 |  |  | 0.07 |  |  | 0.07 |  |  |  |  |  |  |  |  |  |
Total nonperforming loans and leases to loans and leases |  | 0.66 | % |  | 0.75 | % |  | 0.69 | % |  | 0.57 | % |  | 0.52 | % |  |  |  |  |  |  |  |  |

Numbers may not foot due to rounding.

CONSOLIDATED LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of |  | 4Q20 change vs. |
(In millions) |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q20 |  |  |  | 4Q19 |  |  |
|  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Loans and leases 90 days or more past due and accruing |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | — |  |  | 77 | % |  | $ | (2) |  |  | (87) | % |
Commercial real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Consumer real estate |  | 15 |  |  | 14 |  |  | 13 |  |  | 12 |  |  | 18 |  |  | 2 |  |  | 14 |  |  | (3) |  |  | (15) |  |
Credit card and other |  | 1 |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 2 |  |  | — |  |  | (23) |  |  | (1) |  |  | (56) |  |
Total loans and leases 90 days or more past due and accruing |  | $ | 16 |  |  | $ | 15 |  |  | $ | 14 |  |  | $ | 14 |  |  | $ | 22 |  |  | $ | 2 |  |  | 12 | % |  | $ | (6) |  |  | (25) | % |

Numbers may not foot due to rounding.
15

CONSOLIDATED NET CHARGE-OFFS
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of |  | 4Q20 change vs. |
(In millions, except ratio data) |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q20 |  | 4Q19 |
Charge-off, Recoveries and Related Ratios |  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Gross Charge-offs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | 35 |  |  | $ | 69 |  |  | $ | 18 |  |  | $ | 7 |  |  | $ | 5 |  |  | $ | (34) |  |  | (50) | % |  | $ | 30 |  |  | NM |
Commercial real estate |  | — |  |  | 4 |  |  | — |  |  | 1 |  |  | — |  |  | (3) |  |  | (89) |  |  | — |  |  | 58 |  |
Consumer real estate |  | 1 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | — |  |  | (18) |  |  | (1) |  |  | (32) |  |
Credit card and other |  | 4 |  |  | 4 |  |  | 3 |  |  | 4 |  |  | 4 |  |  | — |  |  | — |  |  | — |  |  | (5) |  |
Total gross charge-offs |  | $ | 40 |  |  | $ | 78 |  |  | $ | 23 |  |  | $ | 13 |  |  | $ | 12 |  |  | $ | (38) |  |  | (48) | % |  | $ | 29 |  |  | NM |
Gross Recoveries |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | (4) |  |  | $ | (3) |  |  | $ | (1) |  |  | $ | (1) |  |  | $ | (2) |  |  | $ | (1) |  |  | (25) | % |  | $ | (2) |  |  | (86) | % |
Commercial real estate |  | (1) |  |  | (2) |  |  | — |  |  | (1) |  |  | — |  |  | 1 |  |  | 53 |  |  | (1) |  |  | NM |
Consumer real estate |  | (5) |  |  | (5) |  |  | (4) |  |  | (4) |  |  | (6) |  |  | — |  |  | 4 |  |  | — |  |  | 7 |  |
Credit card and other |  | (1) |  |  | (1) |  |  | (1) |  |  | (1) |  |  | (1) |  |  | — |  |  | (47) |  |  | (1) |  |  | (87) |  |
Total gross recoveries |  | $ | (12) |  |  | $ | (12) |  |  | $ | (6) |  |  | $ | (6) |  |  | $ | (9) |  |  | $ | — |  |  | 1 | % |  | $ | (3) |  |  | (32) | % |
Net Charge-offs (Recoveries) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | 31 |  |  | $ | 66 |  |  | $ | 17 |  |  | $ | 6 |  |  | $ | 3 |  |  | $ | (35) |  |  | (53) | % |  | $ | 28 |  |  | NM |
Commercial real estate |  | (1) |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | (2) |  |  | NM |  | (1) |  |  | NM |
Consumer real estate |  | (4) |  |  | (3) |  |  | (2) |  |  | (1) |  |  | (3) |  |  | — |  |  | (4) |  |  | — |  |  | (9) |  |
Credit card and other |  | 2 |  |  | 3 |  |  | 2 |  |  | 3 |  |  | 3 |  |  | — |  |  | (19) |  |  | (1) |  |  | (30) |  |
Total net charge-offs |  | $ | 29 |  |  | $ | 67 |  |  | $ | 17 |  |  | $ | 7 |  |  | $ | 3 |  |  | $ | (38) |  |  | (57) | % |  | $ | 26 |  |  | NM |
Annualized Net Charge-off (Recovery) Rates |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 0.36 | % |  | 0.77 | % |  | 0.30 | % |  | 0.12 | % |  | 0.07 | % |  |  |  |  |  |  |  |  |
Commercial real estate |  | (0.02) |  |  | 0.04 |  |  | (0.01) |  |  | — |  |  | (0.01) |  |  |  |  |  |  |  |  |  |
Consumer real estate |  | (0.12) |  |  | (0.11) |  |  | (0.13) |  |  | (0.08) |  |  | (0.21) |  |  |  |  |  |  |  |  |  |
Credit card and other |  | 0.68 |  |  | 0.83 |  |  | 1.35 |  |  | 2.12 |  |  | 2.29 |  |  |  |  |  |  |  |  |  |
Total loans and leases |  | 0.19 | % |  | 0.44 | % |  | 0.20 | % |  | 0.10 | % |  | 0.04 | % |  |  |  |  |  |  |  |  |

Numbers may not foot due to rounding.
16

CONSOLIDATED ALLOWANCE FOR LOAN AND LEASE LOSSES AND RESERVE FOR UNFUNDED COMMITMENTS |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of |  | 4Q20 Change vs. |
(In millions) |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q20 |  |  |  | 4Q19 |  |  |
Summary of Changes in the Components of the Allowance For Credit Losses |  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Allowance for loan and lease losses - beginning |  | $ | 988 |  |  | $ | 538 |  |  | $ | 444 |  |  | $ | 200 |  |  | $ | 193 |  |  | $ | 450 |  |  | 84 | % |  | $ | 795 |  |  | NM |
Cumulative effect of change in accounting principle: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | — |  |  | — |  |  | — |  |  | 19 |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Commercial real estate |  | — |  |  | — |  |  | — |  |  | (7) |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Consumer real estate |  | — |  |  | — |  |  | — |  |  | 93 |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Credit card and other |  | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Total cumulative effect of change in accounting principles |  | — |  |  | — |  |  | — |  |  | 106 |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Allowance for loan and lease losses - beginning, adjusted |  | $ | 988 |  |  | $ | 538 |  |  | $ | 444 |  |  | $ | 307 |  |  | $ | 193 |  |  | $ | 450 |  |  | 84 | % |  | $ | 795 |  |  | NM |
Acquired purchased credit deteriorated allowance for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | — |  |  | 138 |  |  | — |  |  | — |  |  | — |  |  | (138) |  |  | (100) |  |  | — |  |  | NM |
Commercial real estate |  | — |  |  | 100 |  |  | — |  |  | — |  |  | — |  |  | (100) |  |  | (100) |  |  | — |  |  | NM |
Consumer real estate |  | — |  |  | 44 |  |  | — |  |  | — |  |  | — |  |  | (44) |  |  | (100) |  |  | — |  |  | NM |
Credit card and other |  | — |  |  | 5 |  |  | — |  |  | — |  |  | — |  |  | (5) |  |  | (100) |  |  | — |  |  | NM |
Total acquired purchased credit deteriorated allowance for loan and lease losses |  | — |  |  | 287 |  |  | — |  |  | — |  |  | — |  |  | (287) |  |  | (100) |  |  | — |  |  | NM |
Charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | (35) |  |  | (69) |  |  | (18) |  |  | (7) |  |  | (5) |  |  | 34 |  |  | 50 |  |  | (30) |  |  | NM |
Commercial real estate |  | — |  |  | (4) |  |  | — |  |  | (1) |  |  | — |  |  | 3 |  |  | 89 |  |  | — |  |  | (58) |  |
Consumer real estate |  | (1) |  |  | (2) |  |  | (2) |  |  | (2) |  |  | (2) |  |  | — |  |  | 18 |  |  | 1 |  |  | 32 |  |
Credit card and other |  | (4) |  |  | (4) |  |  | (3) |  |  | (4) |  |  | (4) |  |  | — |  |  | — |  |  | — |  |  | 5 |  |
Total charge-offs |  | (40) |  |  | (78) |  |  | (23) |  |  | (13) |  |  | (12) |  |  | 38 |  |  | 48 |  |  | (29) |  |  | NM |
Recoveries: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 4 |  |  | 3 |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 1 |  |  | 25 |  |  | 2 |  |  | 86 |  |
Commercial real estate |  | 1 |  |  | 2 |  |  | — |  |  | 1 |  |  | — |  |  | (1) |  |  | (53) |  |  | 1 |  |  | NM |
Consumer real estate |  | 5 |  |  | 5 |  |  | 4 |  |  | 4 |  |  | 6 |  |  | — |  |  | (4) |  |  | — |  |  | (7) |  |
Credit card and other |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | — |  |  | 47 |  |  | 1 |  |  | 87 |  |
Total Recoveries |  | 12 |  |  | 12 |  |  | 6 |  |  | 6 |  |  | 9 |  |  | — |  |  | (1) |  |  | 3 |  |  | 32 |  |
Provision for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I)* |  | (5) |  |  | 99 |  |  | 81 |  |  | 119 |  |  | 12 |  |  | (104) |  |  | (106) |  |  | (17) |  |  | (147) |  |
Commercial real estate* |  | 34 |  |  | 52 |  |  | 10 |  |  | 19 |  |  | — |  |  | (18) |  |  | (35) |  |  | 33 |  |  | NM |
Consumer real estate* |  | (27) |  |  | 74 |  |  | 19 |  |  | — |  |  | (6) |  |  | (101) |  |  | (136) |  |  | (21) |  |  | NM |
Credit card and other* |  | 3 |  |  | 5 |  |  | — |  |  | 7 |  |  | 3 |  |  | (2) |  |  | (46) |  |  | (1) |  |  | (20) |  |
Total provision for loan and lease losses*: |  | 4 |  |  | 230 |  |  | 110 |  |  | 145 |  |  | 10 |  |  | (226) |  |  | (98) |  |  | (6) |  |  | (60) |  |
Allowance for loan and lease losses - ending |  | $ | 963 |  |  | $ | 988 |  |  | $ | 538 |  |  | $ | 444 |  |  | $ | 200 |  |  | $ | (25) |  |  | (3) | % |  | $ | 763 |  |  | NM |
Reserve for unfunded commitments - beginning |  | $ | 89 |  |  | $ | 50 |  |  | $ | 39 |  |  | $ | 6 |  |  | $ | 7 |  |  | $ | 38 |  |  | 76 | % |  | $ | 82 |  |  | NM |
Cumulative effect of change in accounting principle |  | — |  |  | — |  |  | — |  |  | 24 |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Acquired reserve for unfunded commitments |  | (1) |  |  | 41 |  |  | — |  |  | — |  |  | — |  |  | (42) |  |  | (103) |  |  | (1) |  |  | NM |
Provision for unfunded commitments |  | (3) |  |  | (3) |  |  | 11 |  |  | 9 |  |  | (1) |  |  | — |  |  | — |  |  | (2) |  |  | NM |
Reserve for unfunded commitments - ending |  | $ | 85 |  |  | $ | 89 |  |  | $ | 50 |  |  | $ | 39 |  |  | $ | 6 |  |  | $ | (4) |  |  | (5) |  |  | $ | 78 |  |  | NM |
Total allowance for credit losses- ending |  | $ | 1,048 |  |  | $ | 1,077 |  |  | $ | 588 |  |  | $ | 484 |  |  | $ | 206 |  |  | $ | (29) |  |  | (3) | % |  | $ | 841 |  |  | NM |

Numbers may not foot due to rounding. * 3Q20 includes $30 million, $44 million, $70 million, and $3 million recognized within the C&I, Commercial real estate, Consumer real estate, and Credit card and other loan and leases portfolios, respectively, of provision expense associated with the recognition of Non-PCD provision related to mergers/acquisitions.
17

CONSOLIDATED ASSET QUALITY RATIOS - ALLOWANCE FOR LOAN AND LEASE LOSSES |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |
|  | As of |
|  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |
Allowance for loans and lease losses to loans and leases |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 1.37 | % |  | 1.45 | % |  | 1.49 | % |  | 1.15 | % |  | 0.61 | % |
Commercial real estate |  | 1.97 | % |  | 1.66 | % |  | 1.19 | % |  | 1.03 | % |  | 0.83 | % |
Consumer real estate |  | 2.07 | % |  | 2.15 | % |  | 2.38 | % |  | 2.01 | % |  | 0.46 | % |
Credit card and other |  | 2.34 | % |  | 2.11 | % |  | 4.03 | % |  | 3.91 | % |  | 2.68 | % |
Total allowance for loans and lease losses to loans and leases |  | 1.65 | % |  | 1.65 | % |  | 1.64 | % |  | 1.33 | % |  | 0.64 | % |
Allowance for loans and lease losses to nonperforming loans and leases |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 315 | % |  | 230 | % |  | 250 | % |  | 265 | % |  | 165 | % |
Commercial real estate |  | 415 | % |  | 407 | % |  | 2,771 | % |  | 2,175 | % |  | 1,979 | % |
Consumer real estate |  | 133 | % |  | 147 | % |  | 149 | % |  | 135 | % |  | 33 | % |
Credit card and other |  | 1,313 | % |  | 890 | % |  | 7,114 | % |  | 5,368 | % |  | 3,975 | % |
Total allowance for loans and lease losses to nonperforming loans and leases |  | 249 | % |  | 221 | % |  | 238 | % |  | 234 | % |  | 124 | % |

18

REGIONAL BANKING
Quarterly and Year-end, Unaudited

|  |  |  |  |  |  |  |  |  |  | 4Q20 Change vs. |  |  |  | 2020 vs. 2019
| 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q20 |  | 4Q19 |  | 2020 |  | 2019 |  |
|  |  |  |  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |  |  |  |  |  | $/bp |  | %
Income Statement (millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 432 |  |  | $ | 445 |  |  | $ | 227 |  |  | $ | 203 |  |  | $ | 178 |  |  | $ | (13) |  |  | (3) | % |  | $ | 254 |  |  | 143 | % |  | $ | 1,307 |  |  | $ | 773 |  |  | $ | 534 |  |  | 69 | %
Noninterest income | 105 |  |  | 97 |  |  | 69 |  |  | 73 |  |  | 76 |  |  | 8 |  |  | 8 |  |  | 29 |  |  | 38 | % |  | 344 |  |  | 289 |  |  | 55 |  |  | 19 |
Total revenue | 536 |  |  | 542 |  |  | 296 |  |  | 276 |  |  | 254 |  |  | (6) |  |  | (1) |  |  | 282 |  |  | 111 | % |  | 1,651 |  |  | 1,062 |  |  | 589 |  |  | 55 |
Noninterest expense | 297 |  |  | 287 |  |  | 156 |  |  | 160 |  |  | 159 |  |  | 10 |  |  | 3 |  |  | 138 |  |  | 87 | % |  | 901 |  |  | 626 |  |  | 275 |  |  | 44 |
Pre-provision net revenue 2 | 239 |  |  | 255 |  |  | 140 |  |  | 116 |  |  | 95 |  |  | (16) |  |  | (6) |  |  | 144 |  |  | NM |  | 750 |  |  | 436 |  |  | 314 |  |  | 72 |
Provision for credit losses 3 | (2) |  |  | 194 |  |  | 102 |  |  | 98 |  |  | 5 |  |  | (196) |  |  | (101) |  |  | (7) |  |  | (140) | % |  | 392 |  |  | 24 |  |  | 368 |  |  | NM
Income before income tax expense | 242 |  |  | 61 |  |  | 37 |  |  | 19 |  |  | 91 |  |  | 181 |  |  | NM |  | 151 |  |  | NM |  | 358 |  |  | 412 |  |  | (54) |  |  | (13) |
Income tax expense | 56 |  |  | 12 |  |  | 7 |  |  | 3 |  |  | 20 |  |  | 44 |  |  | NM |  | 36 |  |  | NM |  | 77 |  |  | 94 |  |  | (17) |  |  | (18) |
Net income | $ | 186 |  |  | $ | 49 |  |  | $ | 30 |  |  | $ | 16 |  |  | $ | 71 |  |  | $ | 137 |  |  | NM |  | $ | 115 |  |  | NM |  | $ | 281 |  |  | $ | 318 |  |  | $ | (37) |  |  | (12) | %
Average Balances (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total loans and leases | $ | 40.6 |  |  | $ | 41.7 |  |  | $ | 19.1 |  |  | $ | 17.2 |  |  | $ | 16.7 |  |  | $ | (1.1) |  |  | (3) | % |  | $ | 23.9 |  |  | 143 | % |  | $ | 29.7 |  |  | $ | 16.3 |  |  | $ | 13.4 |  |  | 82 | %
Interest-earning assets | 40.6 |  |  | 41.6 |  |  | 19.1 |  |  | 17.2 |  |  | 16.7 |  |  | (1.0) |  |  | (2) |  |  | 23.9 |  |  | 143 |  |  | 29.7 |  |  | 16.3 |  |  | 13.4 |  |  | 82 |
Total assets | 43.1 |  |  | 43.8 |  |  | 21.0 |  |  | 19.1 |  |  | 18.6 |  |  | (0.7) |  |  | (2) |  |  | 24.5 |  |  | 132 |  |  | 31.8 |  |  | 18.3 |  |  | 13.5 |  |  | 74 |
Total deposits | 60.7 |  |  | 59.5 |  |  | 30.2 |  |  | 27.2 |  |  | 27.0 |  |  | 1.2 |  |  | 2 |  |  | 33.7 |  |  | 125 |  |  | 44.5 |  |  | 26.8 |  |  | 17.7 |  |  | 66 |
Key Metrics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest margin 7 | 4.25 | % |  | 4.28 | % |  | 4.83 | % |  | 4.79 | % |  | 4.30 | % |  | (3) | bp |  |  |  | (5) | bp |  |  |  | 4.43 | % |  | 4.79 | % |  | (36) | bp |  |
Efficiency ratio | 55.39 | % |  | 52.97 | % |  | 52.79 | % |  | 57.96 | % |  | 62.41 | % |  | 242 | bp |  |  |  | (702) | bp |  |  |  | 54.56% |  | 58.92% |  | (436) | bp |  |
Loans-to-deposits ratio (period-end balances) | 65.37 | % |  | 68.14 | % |  | 62.34 | % |  | 64.39 | % |  | 61.76 | % |  | (277) | bp |  |  |  | 361 | bp |  |  |  | 65.37% |  | 61.76% |  | 361 | bp |  |
Loans-to-deposits ratio (average-end balances) | 66.91 | % |  | 70.06 | % |  | 63.12 | % |  | 63.24 | % |  | 61.59 | % |  | (315) | bp |  |  |  | 532 | bp |  |  |  | 66.77% |  | 60.63% |  | 614 | bp |  |
Return on average assets (annualized) | 1.72 | % |  | 0.45 | % |  | 0.58 | % |  | 0.34 | % |  | 1.50 | % |  | 127 | bp |  |  |  | 22 | bp |  |  |  | 0.88% |  | 1.74% |  | (86) | bp |  |
Return on allocated equity 8 | 18.37 | % |  | 5.14 | % |  | 6.32 | % |  | 3.41 | % |  | 14.77 | % |  | 1,323 | bp |  |  |  | 360 | bp |  |  |  | 9.65% |  | 16.85% |  | (720) | bp |  |
Financial center locations | 492 |  |  | 493 |  |  | 269 |  |  | 269 |  |  | 269 |  |  | (1) |  |  | — | % |  | 223 |  |  | 83 | % |  |  |  |  |  |  |  |

Numbers may not add to total due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 21.
Regional Banking segment: Offers financial products and services, including traditional lending and deposit taking, to consumer and commercial customers primarily in the southern and southeastern U.S. and other selected markets. Regional Banking also provides investment, wealth management, financial planning, trust and asset management services for consumer customers.
19

SPECIALTY BANKING
Quarterly and Year-end, Unaudited

|  |  |  |  |  |  |  |  |  |  | 4Q20 Change vs. |  |  |  | 2020 vs. 2019
| 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q20 |  | 4Q19 |  | 2020 |  | 2019 |  |
|  |  |  |  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |  |  |  |  |  | $/bp |  | %
Income Statement (millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 177 |  |  | $ | 163 |  |  | $ | 136 |  |  | $ | 107 |  |  | $ | 138 |  |  | $ | 14 |  |  | 8 | % |  | $ | 39 |  |  | 28 | % |  | $ | 583 |  |  | $ | 444 |  |  | $ | 139 |  |  | 31 | %
Noninterest income | 167 |  |  | 181 |  |  | 124 |  |  | 105 |  |  | 94 |  |  | (14) |  |  | (8) |  |  | 73 |  |  | 78 |  |  | 576 |  |  | 318 |  |  | 258 |  |  | 81 |
Total revenue | 344 |  |  | 344 |  |  | 259 |  |  | 212 |  |  | 232 |  |  | (1) |  |  | — |  |  | 112 |  |  | 48 |  |  | 1,159 |  |  | 762 |  |  | 397 |  |  | 52 |
Noninterest expense | 134 |  |  | 138 |  |  | 111 |  |  | 108 |  |  | 95 |  |  | (4) |  |  | (3) |  |  | 40 |  |  | 42 |  |  | 491 |  |  | 351 |  |  | 140 |  |  | 40 |
Pre-provision net revenue 2 | 209 |  |  | 207 |  |  | 149 |  |  | 104 |  |  | 137 |  |  | 3 |  |  | 1 |  |  | 73 |  |  | 53 |  |  | 668 |  |  | 410 |  |  | 258 |  |  | 63 |
Provision for credit losses 3 | 11 |  |  | 34 |  |  | 18 |  |  | 54 |  |  | 10 |  |  | (24) |  |  | (69) |  |  | 1 |  |  | 10 |  |  | 117 |  |  | 37 |  |  | 80 |  |  | NM
Income before income tax expense | 199 |  |  | 172 |  |  | 131 |  |  | 49 |  |  | 127 |  |  | 26 |  |  | 15 |  |  | 72 |  |  | 56 |  |  | 551 |  |  | 373 |  |  | 179 |  |  | 48 |
Income tax expense | 48 |  |  | 42 |  |  | 32 |  |  | 12 |  |  | 31 |  |  | 6 |  |  | 15 |  |  | 17 |  |  | 56 |  |  | 134 |  |  | 91 |  |  | 43 |  |  | 47 |
Net income | $ | 150 |  |  | $ | 130 |  |  | $ | 99 |  |  | $ | 37 |  |  | $ | 96 |  |  | $ | 20 |  |  | 15 | % |  | $ | 55 |  |  | 57 | % |  | $ | 417 |  |  | $ | 281 |  |  | $ | 136 |  |  | 48 | %
Average Balances (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total loans and leases | $ | 18.2 |  |  | $ | 17.4 |  |  | $ | 14.0 |  |  | $ | 12.4 |  |  | $ | 13.1 |  |  | $ | 0.8 |  |  | 5 | % |  | $ | 5.2 |  |  | 40 | % |  | $ | 15.5 |  |  | $ | 11.8 |  |  | $ | 3.7 |  |  | 31 | %
Interest-earning assets | 21.1 |  |  | 20.2 |  |  | 16.7 |  |  | 15.7 |  |  | 15.7 |  |  | 0.9 |  |  | 5 |  |  | 5.4 |  |  | 35 |  |  | 18.4 |  |  | 14.4 |  |  | 4.0 |  |  | 28 |
Total assets | 22.3 |  |  | 21.6 |  |  | 18.0 |  |  | 16.9 |  |  | 16.8 |  |  | 0.7 |  |  | 3 |  |  | 5.5 |  |  | 33 |  |  | 19.7 |  |  | 15.5 |  |  | 4.2 |  |  | 27 |
Total deposits | 4.9 |  |  | 4.4 |  |  | 3.6 |  |  | 3.4 |  |  | 3.4 |  |  | 0.5 |  |  | 12 |  |  | 1.6 |  |  | 46 |  |  | 4.1 |  |  | 3.2 |  |  | 0.9 |  |  | 29 |
Key Metrics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income product average daily revenue (thousands) | $ | 1,505 |  |  | $ | 1,545 |  |  | $ | 1,592 |  |  | $ | 1,264 |  |  | $ | 1,061 |  |  | $ | (40) |  |  | (3) | % |  | $ | 444 |  |  | 42 | % |  | $ | 1,477 |  |  | $ | 914 |  |  | $ | 563 |  |  | 62 | %
Net interest margin 7 | 3.34 | % |  | 3.23 | % |  | 3.26 | % |  | 2.75 | % |  | 3.49 | % |  | 11 | bp |  |  |  | (15) | bp |  |  |  | 3.17 | % |  | 3.08 | % |  | 9 | bp |  |
Efficiency ratio | 39.07 | % |  | 40.00 | % |  | 42.72 | % |  | 51.05 | % |  | 40.91 | % |  | (93) | bp |  |  |  | (184) | bp |  |  |  | 42.36% |  | 46.14% |  | (378) | bp |  |
Loans-to-deposits ratio (period-end balances) | 365 | % |  | 399 | % |  | 375 | % |  | 468 | % |  | 408 | % |  | (3,422) | bp |  |  |  | (4,315) | bp |  |  |  | 365% |  | 408% |  | (4,315) | bp |  |
Loans-to-deposits ratio (average-end balances) | 370 | % |  | 395 | % |  | 393 | % |  | 368 | % |  | 388 | % |  | (2,524) | bp |  |  |  | (1,841) | bp |  |  |  | 381% |  | 374% |  | 711 | bp |  |
Return on average assets (annualized) | 2.69 | % |  | 2.40 | % |  | 2.20 | % |  | 0.89 | % |  | 2.26 | % |  | 29 | bp |  |  |  | 43 | bp |  |  |  | 2.11% |  | 1.81% |  | 30 | bp |  |
Return on allocated equity 8 | 36.07 | % |  | 31.53 | % |  | 28.49 | % |  | 11.18 | % |  | 28.26 | % |  | 454 | bp |  |  |  | 781 | bp |  |  |  | 27.58% |  | 21.84% |  | 574 | bp |  |

Numbers may not add to total due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 21.
Specialty Banking segment: Consists of lines of business that deliver product offerings and services with specialized industry knowledge. Specialty Banking’s lines of business include asset-based lending, mortgage warehouse lending, commercial real estate, franchise finance, correspondent banking, equipment finance, mortgage, and title insurance. In addition to traditional lending and deposit taking, Specialty Banking also delivers treasury management solutions, loan syndications, international banking and SBA lending. Additionally, Specialty Banking has a line of business focused on fixed income securities sales, trading, underwriting, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory services, and derivative sales.
20

CORPORATE
Quarterly and Year-end, Unaudited

|  | 4Q20 Change vs. |  |  |  |  |  | 2020 vs. 2019
| 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 3Q20 |  | 4Q19 |  | 2020 |  | 2019 |  |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |  |  |  |  |  | $/bp |  | %
Income Statement (millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income/(expense) | $ | (87) |  |  | $ | (76) |  |  | $ | (57) |  |  | $ | (8) |  |  | $ | (5) |  |  | $ | (10) |  |  | (13) | % |  | $ | (82) |  |  | NM |  | $ | (228) |  |  | $ | (7) |  |  | $ | (221) |  |  | NM
Noninterest income 1 | 17 |  |  | 545 |  |  | 14 |  |  | (3) |  |  | 13 |  |  | (528) |  |  | (97) |  |  | 3 |  |  | 25 |  |  | 573 |  |  | 47 |  |  | 525 |  |  | NM
Total revenues | (70) |  |  | 469 |  |  | (43) |  |  | (11) |  |  | 9 |  |  | (538) |  |  | (115) |  |  | (79) |  |  | NM |  | 345 |  |  | 40 |  |  | 304 |  |  | NM
Noninterest expense | 77 |  |  | 162 |  |  | 54 |  |  | 34 |  |  | 75 |  |  | (85) |  |  | (53) |  |  | 2 |  |  | 3 |  |  | 327 |  |  | 256 |  |  | 71 |  |  | 28 | %
Pre-provision net revenue 2 | (147) |  |  | 307 |  |  | (98) |  |  | (44) |  |  | (66) |  |  | (454) |  |  | (148) |  |  | (81) |  |  | (122) |  |  | 18 |  |  | (216) |  |  | 234 |  |  | 108 |
Provision for credit losses 3 | (7) |  |  | (1) |  |  | 1 |  |  | 2 |  |  | (5) |  |  | (6) |  |  | NM |  | (2) |  |  | (40) |  |  | (6) |  |  | (16) |  |  | 11 |  |  | 65 |
Income before income tax expense | (139) |  |  | 308 |  |  | (98) |  |  | (47) |  |  | (61) |  |  | (448) |  |  | (145) |  |  | (78) |  |  | (129) |  |  | 24 |  |  | (199) |  |  | 223 |  |  | 112 |
Income tax expense (benefit) | (48) |  |  | (52) |  |  | (26) |  |  | (10) |  |  | (16) |  |  | 4 |  |  | 8 |  |  | (32) |  |  | NM |  | (135) |  |  | (52) |  |  | (83) |  |  | NM
Net income/(loss) | $ | (92) |  |  | $ | 360 |  |  | $ | (72) |  |  | $ | (37) |  |  | $ | (45) |  |  | $ | (451) |  |  | (125) | % |  | $ | (46) |  |  | (103) | % |  | $ | 159 |  |  | $ | (147) |  |  | $ | 306 |  |  | NM
Average Balance Sheet (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing assets | $ | 15.3 |  |  | $ | 13.2 |  |  | $ | 6.9 |  |  | $ | 5.9 |  |  | $ | 5.9 |  |  | $ | 2.1 |  |  | 16 | % |  | $ | 9.4 |  |  | NM |  | $ | 10.3 |  |  | $ | 6.4 |  |  | $ | 3.9 |  |  | 60 | %
Total assets | 18.4 |  |  | 16.3 |  |  | 8.9 |  |  | 7.6 |  |  | 7.4 |  |  | 2.1 |  |  | 13 |  |  | 11.0 |  |  | 148 | % |  | 12.8 |  |  | 8.0 |  |  | 4.8 |  |  | 61 |

Numbers may not foot due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 21.
Corporate segment: Consists primarily of corporate support functions including risk management, audit, accounting, finance, executive office, and corporate communications. Shared support services such as human resources, properties, technology, credit risk and bank operations are allocated to the activities of Regional Banking, Specialty Banking, and Corporate. Additionally, the Corporate segment includes centralized management of capital and funding to support the business activities of the company including management of wholesale funding, liquidity, and capital management and allocation. Finally, the Corporate segment includes the revenue and expense associated with run-off businesses such as pre-2009 mortgage banking elements, run-off consumer and trust preferred loan portfolios, and other exited businesses.
FOOTNOTES
1 3Q20 includes a $532 million purchase accounting gain from FHN's merger with IBERIABANK.
2 Pre-provision net revenue is a non-GAAP measure and is reconciled to income before income taxes (GAAP) in the table.
3 Beginning in 3Q20 FHN began recording credit expense on unfunded commitments as a component of provision for credit losses. Prior period amounts have been reclassified from other noninterest expense.
4 Represents a non-GAAP measure and is reconciled to the nearest GAAP measure in the non-GAAP to GAAP reconciliations beginning on page 22.
5 Credit card and other includes an insignificant amount of commercial credit card balances.
6 Effective 1/1/2020 FHN adopted ASU 2016-13, "Measurement of Credit Losses on Financial Instruments," (CECL) which resulted in an increase to the Allowance for loan and lease losses of $106 million and a net decrease to retained earnings of $96 million.
7 Net interest margin is computed using total NII adjusted for FTE assuming a statutory federal income tax rate of 21 percent, and, where applicable state taxes.
8 Segment equity is allocated based on an internal allocation methodology.
21

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly and Year-end, Unaudited

($s in millions, except per share data) | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 2020 |  | 2019 |
Tangible Common Equity (Non-GAAP) |  |  |  |  |  |  |  |  |  |  |  |  |  |
(A) Total equity (GAAP) | $ | 8,307 |  |  | $ | 8,144 |  |  | $ | 5,208 |  |  | $ | 5,056 |  |  | $ | 5,076 |  |  | $ | 8,307 |  |  | $ | 5,076 |  |
Less: Noncontrolling interest (a) | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |
Less: Preferred stock (a) | 470 |  |  | 470 |  |  | 240 |  |  | 96 |  |  | 96 |  |  | 470 |  |  | 96 |  |
(B) Total common equity | $ | 7,541 |  |  | $ | 7,378 |  |  | $ | 4,673 |  |  | $ | 4,665 |  |  | $ | 4,685 |  |  | $ | 7,541 |  |  | $ | 4,685 |  |
Less: Intangible assets (GAAP) (b) | 1,864 |  |  | 1,876 |  |  | 1,552 |  |  | 1,558 |  |  | 1,563 |  |  | 1,864 |  |  | 1,563 |  |
(C) Tangible common equity (Non-GAAP) | $ | 5,677 |  |  | $ | 5,502 |  |  | $ | 3,120 |  |  | $ | 3,107 |  |  | $ | 3,122 |  |  | $ | 5,677 |  |  | $ | 3,122 |  |
Tangible Assets (Non-GAAP) |  |  |  |  |  |  |  |  |  |  |  |  |  |
(D) Total assets (GAAP) | $ | 84,209 |  |  | $ | 83,030 |  |  | $ | 48,645 |  |  | $ | 47,197 |  |  | $ | 43,311 |  |  | $ | 84,209 |  |  | $ | 43,311 |  |
Less: Intangible assets (GAAP) (b) | 1,864 |  |  | 1,876 |  |  | 1,552 |  |  | 1,558 |  |  | 1,563 |  |  | 1,864 |  |  | 1,563 |  |
(E) Tangible assets (Non-GAAP) | $ | 82,345 |  |  | $ | 81,154 |  |  | $ | 47,092 |  |  | $ | 45,640 |  |  | $ | 41,748 |  |  | $ | 82,345 |  |  | $ | 41,748 |  |
Period-end Shares Outstanding |  |  |  |  |  |  |  |  |  |  |  |  |  |
(F) Period-end shares outstanding | 555 |  |  | 555 |  |  | 312 |  |  | 312 |  |  | 311 |  |  | 555 |  |  | 311 |  |
Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |
(A)/(D) Total equity to total assets (GAAP) | 9.86 | % |  | 9.81 | % |  | 10.71 | % |  | 10.71 | % |  | 11.72 | % |  | 9.86 | % |  | 11.72 | % |
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP) | 6.89 | % |  | 6.78 | % |  | 6.63 | % |  | 6.81 | % |  | 7.48 | % |  | 6.89 | % |  | 7.48 | % |
(B)/(F) Book value per common share (GAAP) | $ | 13.59 |  |  | $ | 13.30 |  |  | $ | 14.96 |  |  | $ | 14.96 |  |  | $ | 15.04 |  |  | $ | 13.59 |  |  | $ | 15.04 |  |
(C)/(F) Tangible book value per common share (Non-GAAP) | $ | 10.23 |  |  | $ | 9.92 |  |  | $ | 9.99 |  |  | $ | 9.96 |  |  | $ | 10.02 |  |  | $ | 10.23 |  |  | $ | 10.02 |  |

(a) Included in Total equity on the Consolidated Balance Sheet.
(b) Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.

22

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
|  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |
($s in millions, except per share data) |  | GAAP | Notable Items | Non-GAAP |  | GAAP | Notable Items | Non-GAAP |  | GAAP | Notable Items | Non-GAAP |  | GAAP | Notable Items | Non-GAAP |  | GAAP | Notable Items | Non-GAAP |
Interest income |  | $ | 574 |  | $ | — |  | $ | 574 |  |  | $ | 598 |  | $ | — |  | $ | 598 |  |  | $ | 347 |  | $ | — |  | $ | 347 |  |  | $ | 378 |  | $ | — |  | $ | 378 |  |  | $ | 404 |  | $ | — |  | $ | 404 |  |
Interest expense |  | 53 |  | — |  | 53 |  |  | 66 |  | — |  | 66 |  |  | 41 |  | — |  | 41 |  |  | 76 |  | — |  | 76 |  |  | 93 |  | — |  | 93 |  |
Net interest income |  | 522 |  | — |  | 522 |  |  | 532 |  | — |  | 532 |  |  | 305 |  | — |  | 305 |  |  | 303 |  | — |  | 303 |  |  | 311 |  | — |  | 311 |  |
Noninterest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income |  | 104 |  | — |  | 104 |  |  | 111 |  | — |  | 111 |  |  | 112 |  | — |  | 112 |  |  | 96 |  | — |  | 96 |  |  | 81 |  | — |  | 81 |  |
Mortgage banking and title |  | 57 |  | — |  | 57 |  |  | 66 |  | — |  | 66 |  |  | 4 |  | — |  | 4 |  |  | 2 |  | — |  | 2 |  |  | 4 |  | — |  | 4 |  |
Brokerage, trust, and insurance |  | 31 |  | — |  | 31 |  |  | 30 |  | — |  | 30 |  |  | 22 |  | — |  | 22 |  |  | 23 |  | — |  | 23 |  |  | 22 |  | — |  | 22 |  |
Service charges and fees |  | 53 |  | — |  | 53 |  |  | 50 |  | — |  | 50 |  |  | 35 |  | — |  | 35 |  |  | 36 |  | — |  | 36 |  |  | 39 |  | — |  | 39 |  |
Card and digital banking fees |  | 18 |  | — |  | 18 |  |  | 17 |  | — |  | 17 |  |  | 12 |  | — |  | 12 |  |  | 12 |  | — |  | 12 |  |  | 14 |  | — |  | 14 |  |
Deferred compensation income |  | 9 |  | — |  | 9 |  |  | 4 |  | — |  | 4 |  |  | 8 |  | — |  | 8 |  |  | (10) |  | — |  | (10) |  |  | 3 |  | — |  | 3 |  |
Other noninterest income |  | 16 |  | (1) |  | 15 |  |  | 546 |  | (532) |  | 14 |  |  | 12 |  | — |  | 12 |  |  | 15 |  | — |  | 15 |  |  | 20 |  | — |  | 20 |  |
Total noninterest income |  | 288 |  | (1) |  | 288 |  |  | 823 |  | (532) |  | 291 |  |  | 206 |  | — |  | 206 |  |  | 175 |  | — |  | 175 |  |  | 183 |  | — |  | 183 |  |
Total revenue |  | 810 |  | (1) |  | 810 |  |  | 1,355 |  | (532) |  | 823 |  |  | 512 |  | — |  | 512 |  |  | 478 |  | — |  | 478 |  |  | 495 |  | — |  | 495 |  |
Noninterest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits |  | 200 |  | — |  | 200 |  |  | 201 |  | (1) |  | 200 |  |  | 111 |  | (5) |  | 107 |  |  | 113 |  | (1) |  | 112 |  |  | 112 |  | (4) |  | 107 |  |
Incentives and commissions |  | 110 |  | (21) |  | 89 |  |  | 126 |  | (34) |  | 91 |  |  | 79 |  | — |  | 79 |  |  | 81 |  | — |  | 81 |  |  | 63 |  | — |  | 63 |  |
Deferred compensation expense |  | 9 |  | — |  | 9 |  |  | 3 |  | — |  | 3 |  |  | 9 |  | — |  | 9 |  |  | (10) |  | — |  | (10) |  |  | 4 |  | — |  | 4 |  |
Total personnel expense |  | 319 |  | (21) |  | 298 |  |  | 329 |  | (35) |  | 294 |  |  | 200 |  | (5) |  | 195 |  |  | 183 |  | (1) |  | 182 |  |  | 179 |  | (4) |  | 174 |  |
Occupancy and equipment |  | 76 |  | (2) |  | 74 |  |  | 77 |  | (4) |  | 73 |  |  | 46 |  | — |  | 46 |  |  | 44 |  | — |  | 44 |  |  | 44 |  | — |  | 44 |  |
Outside services |  | 59 |  | (7) |  | 52 |  |  | 78 |  | (32) |  | 46 |  |  | 38 |  | (5) |  | 33 |  |  | 38 |  | (2) |  | 37 |  |  | 54 |  | (18) |  | 36 |  |
Amortization of intangible assets |  | 15 |  | (1) |  | 14 |  |  | 15 |  | (1) |  | 14 |  |  | 5 |  | — |  | 5 |  |  | 5 |  | — |  | 5 |  |  | 6 |  |  | 6 |  |
Other noninterest expense | 39 |  | (4) |  | 35 |  |  | 89 |  | (44) |  | 45 |  |  | 31 |  | (4) |  | 27 |  |  | 31 |  | (3) |  | 28 |  |  | 45 |  | (15) |  | 31 |  |
Total noninterest expense | 508 |  | (34) |  | 474 |  |  | 587 |  | (116) |  | 471 |  |  | 321 |  | (14) |  | 307 |  |  | 302 |  | (6) |  | 296 |  |  | 328 |  | (37) |  | 291 |  |
Pre-provision net revenue | 302 |  | 33 |  | 335 |  |  | 768 |  | (416) |  | 352 |  |  | 191 |  | 14 |  | 205 |  |  | 175 |  | 6 |  | 181 |  |  | 166 |  | 37 |  | 203 |  |
Provision for credit losses | 1 |  | — |  | 1 |  |  | 227 |  | (147) |  | 80 |  |  | 121 |  | — |  | 121 |  |  | 154 |  | — |  | 154 |  |  | 9 |  | — |  | 9 |  |
Income before income taxes | 301 |  | 33 |  | 334 |  |  | 541 |  | (269) |  | 272 |  |  | 69 |  | 14 |  | 84 |  |  | 21 |  | 6 |  | 27 |  |  | 157 |  | 37 |  | 194 |  |
Provision for income taxes | 56 |  | 13 |  | 69 |  |  | 2 |  | 61 |  | 63 |  |  | 13 |  | 3 |  | 15 |  |  | 5 |  | 1 |  | 6 |  |  | 36 |  | 7 |  | 43 |  |
Net income | 245 |  | 20 |  | 265 |  |  | 539 |  | (331) |  | 208 |  |  | 57 |  | 12 |  | 68 |  |  | 16 |  | 5 |  | 21 |  |  | 121 |  | 30 |  | 151 |  |
Net income attributable to noncontrolling interest | 3 |  | — |  | 3 |  |  | 3 |  | — |  | 3 |  |  | 3 |  | — |  | 3 |  |  | 3 |  | — |  | 3 |  |  | 3 |  | — |  | 3 |  |
Net income attributable to controlling interest | 242 |  | 20 |  | 262 |  |  | 536 |  | (331) |  | 205 |  |  | 54 |  | 12 |  | 66 |  |  | 14 |  | 5 |  | 18 |  |  | 118 |  | 30 |  | 148 |  |
Preferred stock dividends | 8 |  | — |  | 8 |  |  | 13 |  | — |  | 13 |  |  | 2 |  | — |  | 2 |  |  | 2 |  | — |  | 2 |  |  | 2 |  | — |  | 2 |  |
Net income available to common shareholders | $ | 234 |  | $ | 20 |  | $ | 255 |  |  | $ | 523 |  | $ | (331) |  | $ | 193 |  |  | $ | 52 |  | $ | 12 |  | $ | 64 |  |  | $ | 12 |  | $ | 5 |  | $ | 17 |  |  | $ | 117 |  | $ | 30 |  | $ | 147 |  |
Common Stock Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS |  | $ | 0.42 |  | $ | 0.04 |  | $ | 0.46 |  |  | $ | 0.95 |  | $ | (0.60) |  | $ | 0.35 |  |  | $ | 0.17 |  | $ | 0.04 |  | $ | 0.21 |  |  | $ | 0.04 |  | $ | 0.01 |  | $ | 0.05 |  |  | $ | 0.38 |  | $ | 0.10 |  | $ | 0.47 |  |
Basic shares |  | 553 |  |  | 553 |  |  | 550 |  |  | 550 |  |  | 312 |  |  | 312 |  |  | 312 |  |  | 312 |  |  | 311 |  |  | 311 |  |
Diluted EPS |  | $ | 0.42 |  | $ | 0.04 |  | $ | 0.46 |  |  | $ | 0.95 |  | $ | (0.60) |  | $ | 0.35 |  |  | $ | 0.17 |  | $ | 0.04 |  | $ | 0.20 |  |  | $ | 0.04 |  | $ | 0.01 |  | $ | 0.05 |  |  | $ | 0.37 |  | $ | 0.10 |  | $ | 0.47 |  |
Diluted shares |  | 557 |  |  | 557 |  |  | 551 |  |  | 551 |  |  | 313 |  |  | 313 |  |  | 313 |  |  | 313 |  |  | 313 |  |  | 313 |  |

Amounts adjusted for notable items as detailed on page 11.
Numbers may not foot due to rounding.
23

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Year-end, Unaudited
|  | 2020 |  | 2019
($s in millions, except per share data) |  | GAAP | Notable Items | Non-GAAP |  | GAAP | Notable Items | Non-GAAP
Interest income |  | $ | 1,898 |  | $ | — |  | $ | 1,898 |  |  | $ | 1,624 |  | $ | — |  | $ | 1,624 |
Interest expense |  | 235 |  | — |  | 235 |  |  | 414 |  | — |  | 414 |
Net interest income |  | 1,662 |  | — |  | 1,662 |  |  | 1,210 |  | — |  | 1,210 |
Noninterest income: |  |  |  |  |  |  |  |
Fixed income |  | 423 |  | — |  | 423 |  |  | 279 |  | — |  | 279 |
Mortgage banking and title |  | 129 |  | — |  | 129 |  |  | 10 |  | — |  | 10 |
Brokerage, trust, and insurance |  | 107 |  | — |  | 107 |  |  | 87 |  | — |  | 87 |
Service charges and fees |  | 174 |  | — |  | 174 |  |  | 153 |  | — |  | 153 |
Card and digital banking fees |  | 59 |  | — |  | 59 |  |  | 50 |  | — |  | 50 |
Deferred compensation income |  | 11 |  | — |  | 11 |  |  | 11 |  | — |  | 11 |
Other noninterest income |  | 589 |  | (533) |  | 56 |  |  | 64 |  | — |  | 64 |
Total noninterest income |  | 1,492 |  | (533) |  | 960 |  |  | 654 |  | — |  | 654 |
Total revenue |  | 3,155 |  | (533) |  | 2,622 |  |  | 1,864 |  | — |  | 1,864 |
Noninterest expense: |  |  |  |  |  |  |  |
Personnel expense: |  |  |  |  |  |  |  |
Salaries and benefits |  | 625 |  | (7) |  | 619 |  |  | 454 |  | (5) |  | 449 |
Incentives and commissions |  | 396 |  | (55) |  | 341 |  |  | 228 |  | (10) |  | 219 |
Deferred compensation expense |  | 11 |  | — |  | 11 |  |  | 13 |  | — |  | 13 |
Total personnel expense |  | 1,033 |  | (62) |  | 971 |  |  | 695 |  | (15) |  | 680 |
Occupancy and equipment |  | 243 |  | (6) |  | 238 |  |  | 175 |  | (3) |  | 172 |
Outside services |  | 213 |  | (46) |  | 166 |  |  | 190 |  | (48) |  | 143 |
Amortization of intangible assets |  | 40 |  | (2) |  | 38 |  |  | 25 |  | — |  | 25 |
Other noninterest expense | 189 |  | (54) |  | 136 |  |  | 148 |  | (49) |  | 98 |
Total noninterest expense | 1,718 |  | (170) |  | 1,549 |  |  | 1,233 |  | (114) |  | 1,119 |
Pre-provision net revenue | 1,436 |  | (363) |  | 1,073 |  |  | 631 |  | 114 |  | 745 |
Provision for credit losses | 503 |  | (147) |  | 356 |  |  | 45 |  | — |  | 45 |
Income before income taxes | 933 |  | (216) |  | 717 |  |  | 586 |  | 114 |  | 700 |
Provision for income taxes | 76 |  | 78 |  | 154 |  |  | 133 |  | 24 |  | 157 |
Net income | 857 |  | (294) |  | 563 |  |  | 452 |  | 90 |  | 543 |
Net income attributable to noncontrolling interest | 12 |  | — |  | 12 |  |  | 11 |  | — |  | 11 |
Net income attributable to controlling interest | 845 |  | (294) |  | 551 |  |  | 441 |  | 90 |  | 531 |
Preferred stock dividends | 23 |  | — |  | 23 |  |  | 6 |  | — |  | 6 |
Net income available to common shareholders | $ | 822 |  | $ | (294) |  | $ | 528 |  |  | $ | 435 |  | $ | 90 |  | $ | 525 |
Common Stock Data |  |  |  |  |  |
EPS |  | $ | 1.90 |  | $ | (0.68) |  | $ | 1.22 |  |  | $ | 1.39 |  | $ | 0.29 |  | $ | 1.67 |
Basic shares |  | 432 |  |  | 432 |  |  | 314 |  |  | 314 |
Diluted EPS |  | $ | 1.89 |  | $ | (0.68) |  | $ | 1.22 |  |  | $ | 1.38 |  | $ | 0.29 |  | $ | 1.66 |
Diluted shares |  | 434 |  |  | 434 |  |  | 316 |  |  | 316 |

Amounts adjusted for notable items as detailed on page 11.
Numbers may not foot due to rounding.
24

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly and Year-end, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
($s in millions, except per share data) |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 2020 |  | 2019 |
Adjusted Diluted EPS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income available to common ("NIAC") (GAAP) | a | $ | 234 |  |  | $ | 523 |  |  | $ | 52 |  |  | $ | 12 |  |  | $ | 117 |  |  | $ | 822 |  |  | $ | 435 |  |
Plus Tax effected notable items (Non-GAAP) (a) |  | 20 |  |  | (331) |  |  | 12 |  |  | 5 |  |  | 30 |  |  | (294) |  |  | 90 |  |
Adjusted NIAC (Non-GAAP) | b | $ | 255 |  |  | $ | 192 |  |  | $ | 64 |  |  | $ | 17 |  |  | $ | 147 |  |  | $ | 528 |  |  | $ | 525 |  |
Diluted Shares (GAAP) | c | 557 |  |  | 551 |  |  | 313 |  |  | 313 |  |  | 313 |  |  | 434 |  |  | 316 |  |
Diluted EPS (GAAP) | a/c | $ | 0.42 |  |  | $ | 0.95 |  |  | $ | 0.17 |  |  | $ | 0.04 |  |  | $ | 0.37 |  |  | $ | 1.89 |  |  | $ | 1.38 |  |
Adjusted diluted EPS (Non-GAAP) | b/c | $ | 0.46 |  |  | $ | 0.35 |  |  | $ | 0.20 |  |  | $ | 0.05 |  |  | $ | 0.47 |  |  | $ | 1.22 |  |  | $ | 1.66 |  |
Adjusted Net Income ("NI") and Adjusted Return on Assets ("ROA") |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Income ("NI") (GAAP) |  | $ | 245 |  |  | $ | 539 |  |  | $ | 57 |  |  | $ | 16 |  |  | $ | 121 |  |  | $ | 857 |  |  | $ | 452 |  |
Plus Tax effected notable items (Non-GAAP) (a) |  | 20 |  |  | (331) |  |  | 12 |  |  | 5 |  |  | 30 |  |  | (294) |  |  | 90 |  |
Adjusted NI (Non-GAAP) |  | $ | 265 |  |  | $ | 208 |  |  | $ | 68 |  |  | $ | 21 |  |  | $ | 151 |  |  | $ | 563 |  |  | $ | 543 |  |
NI (annualized) (GAAP) | d | $ | 974 |  |  | $ | 2,144 |  |  | $ | 228 |  |  | $ | 66 |  |  | $ | 481 |  |  | $ | 857 |  |  | $ | 452 |  |
Adjusted NI (annualized) (Non-GAAP) | e | $ | 1,055 |  |  | $ | 828 |  |  | $ | 275 |  |  | $ | 84 |  |  | $ | 600 |  |  | $ | 563 |  |  | $ | 543 |  |
Average assets (GAAP) | f | $ | 83,809 |  |  | $ | 81,683 |  |  | $ | 47,934 |  |  | $ | 43,552 |  |  | $ | 42,886 |  |  | $ | 64,346 |  |  | $ | 41,744 |  |
ROA (GAAP) | d/f | 1.16 | % |  | 2.63 | % |  | 0.48 | % |  | 0.15 | % |  | 1.12 | % |  | 1.33 | % |  | 1.08 | % |
Adjusted ROA (Non-GAAP) | e/f | 1.26 | % |  | 1.01 | % |  | 0.57 | % |  | 0.19 | % |  | 1.40 | % |  | 0.87 | % |  | 1.30 | % |
Return on Average Common Equity ("ROCE")/ Return on Average Tangible Common Equity ("ROTCE")/ Adjusted ROTCE |  |  |  |
NIAC (annualized) (GAAP) | g | $ | 933 |  |  | $ | 2,082 |  |  | $ | 210 |  |  | $ | 49 |  |  | $ | 463 |  |  | $ | 822 |  |  | $ | 435 |  |
Adjusted NIAC (annualized) (Non-GAAP) | h | $ | 1,013 |  |  | $ | 765 |  |  | $ | 257 |  |  | $ | 67 |  |  | $ | 582 |  |  | $ | 528 |  |  | $ | 525 |  |
Average Common Equity (GAAP) | i | $ | 7,444 |  |  | $ | 7,309 |  |  | $ | 4,673 |  |  | $ | 4,611 |  |  | $ | 4,649 |  |  | $ | 6,016 |  |  | $ | 4,530 |  |
Intangible Assets (GAAP) (b) |  | 1,871 |  |  | 1,794 |  |  | 1,555 |  |  | 1,560 |  |  | 1,566 |  |  | 1,696 |  |  | 1,575 |  |
Average Tangible Common Equity (Non-GAAP) | j | $ | 5,573 |  |  | $ | 5,515 |  |  | $ | 3,117 |  |  | $ | 3,051 |  |  | $ | 3,083 |  |  | $ | 4,320 |  |  | $ | 2,955 |  |
Equity Adjustment (Non-GAAP) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 23 |  |  | 28 |  |
Adjusted Average Tangible Common Equity (Non-GAAP) | k | $ | 5,573 |  |  | $ | 5,515 |  |  | $ | 3,117 |  |  | $ | 3,051 |  |  | $ | 3,083 |  |  | $ | 4,343 |  |  | $ | 2,983 |  |
ROCE (GAAP) | g/i | 12.53 | % |  | 28.49 | % |  | 4.50 | % |  | 1.05 | % |  | 9.97 | % |  | 13.66 | % |  | 9.60 | % |
ROTCE (Non-GAAP) | g/j | 16.73 | % |  | 37.75 | % |  | 6.74 | % |  | 1.59 | % |  | 15.03 | % |  | 19.03 | % |  | 14.71 | % |
Adjusted ROTCE (Non-GAAP) | h/k | 18.18 | % |  | 13.90 | % |  | 8.26 | % |  | 2.19 | % |  | 18.88 | % |  | 12.15 | % |  | 17.60 | % |

(a) Amounts adjusted for notable items as detailed on page 11.
(b) Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.
25

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly and Year-end, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(In millions) |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q19 |  | 2020 |  | 2019 |
Adjusted Noninterest Income as a % of Total Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest income (GAAP) | k | $ | 288 |  |  | $ | 823 |  |  | $ | 206 |  |  | $ | 175 |  |  | $ | 183 |  |  | $ | 1,492 |  |  | $ | 654 |  |
Plus notable items (GAAP) (a) |  | (1) |  |  | (532) |  |  | — |  |  | — |  |  | — |  |  | (533) |  |  | — |  |
Adjusted noninterest income (Non-GAAP) | l | $ | 288 |  |  | $ | 291 |  |  | $ | 206 |  |  | $ | 175 |  |  | $ | 183 |  |  | $ | 960 |  |  | $ | 654 |  |
Revenue (GAAP) | m | $ | 810 |  |  | $ | 1,355 |  |  | $ | 512 |  |  | $ | 478 |  |  | $ | 495 |  |  | $ | 3,155 |  |  | $ | 1,864 |  |
Plus notable items (GAAP) (a) |  | (1) |  |  | (532) |  |  | — |  |  | — |  |  | — |  |  | (533) |  |  | — |  |
Adjusted revenue (Non-GAAP) | n | $ | 810 |  |  | $ | 823 |  |  | $ | 512 |  |  | $ | 478 |  |  | $ | 495 |  |  | $ | 2,623 |  |  | $ | 1,864 |  |
Noninterest income as a % of total revenue (GAAP) | k/m | 35.61 | % |  | 60.72 | % |  | 40.32 | % |  | 36.59 | % |  | 37.05 | % |  | 47.31 | % |  | 35.09 | % |
Adjusted noninterest income as a % of total revenue (Non-GAAP) | l/n | 35.56 | % |  | 35.32 | % |  | 40.32 | % |  | 36.59 | % |  | 37.05 | % |  | 36.60 | % |  | 35.09 | % |
Adjusted Efficiency Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest expense (GAAP) | o | $ | 508 |  |  | $ | 587 |  |  | $ | 321 |  |  | $ | 302 |  |  | $ | 328 |  |  | $ | 1,718 |  |  | $ | 1,233 |  |
Plus notable items (GAAP) (a) |  | (34) |  |  | (116) |  |  | (14) |  |  | (6) |  |  | (37) |  |  | (170) |  |  | (114) |  |
Adjusted noninterest expense (Non-GAAP) | p | $ | 474 |  |  | $ | 471 |  |  | $ | 307 |  |  | $ | 296 |  |  | $ | 291 |  |  | $ | 1,549 |  |  | $ | 1,119 |  |
Revenue (GAAP) | q | $ | 810 |  |  | $ | 1,355 |  |  | $ | 512 |  |  | $ | 478 |  |  | $ | 495 |  |  | $ | 3,155 |  |  | $ | 1,864 |  |
Plus notable items (GAAP) (a) |  | (1) |  |  | (532) |  |  | — |  |  | — |  |  | — |  |  | (533) |  |  | — |  |
Adjusted revenue (Non-GAAP) | r | $ | 810 |  |  | $ | 823 |  |  | $ | 512 |  |  | $ | 478 |  |  | $ | 495 |  |  | $ | 2,622 |  |  | $ | 1,864 |  |
Efficiency ratio (GAAP) | o/q | 62.71 | % |  | 43.31 | % |  | 62.74 | % |  | 63.26 | % |  | 66.35 | % |  | 54.47 | % |  | 66.15 | % |
Adjusted efficiency ratio (Non-GAAP) | p/r | 58.57 | % |  | 57.26 | % |  | 59.95 | % |  | 62.05 | % |  | 58.88 | % |  | 59.06 | % |  | 60.02 | % |

(a) Amounts adjusted for notable items as detailed on page 11.
(b) Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.
26

GLOSSARY OF TERMS

Common Equity Tier 1 Ratio: Ratio consisting of common equity adjusted for certain unrealized gains/(losses) on available-for-sale securities, less disallowed portions of goodwill, other intangibles, and deferred tax assets as well as certain other regulatory deductions divided by risk-weighted assets.
Current Expected Credit Loss (“CECL”): New accounting standard that focuses on estimation of expected losses over the life of the loans which is measured by the difference between amortized cost and the net amount expected to be collected.
Fully Taxable Equivalent (“FTE”): Reflects the amount of tax-exempt income adjusted to a level that would yield the same after-tax income had that income been subject to taxation.
Non-Purchased Credit Deteriorated (“Non-PCD”) Financial Assets: Acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that, as of the date of acquisition, do not have a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer’s assessment.
Purchased Credit Deteriorated (“PCD”) Financial Assets: Acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer’s assessment.
Tier 1 Capital Ratio: Ratio consisting of shareholders’ equity adjusted for certain unrealized gains/(losses) on available-for-sale securities, plus qualifying portions of noncontrolling interests, less disallowed portions of goodwill, other intangible assets, and deferred tax assets as well as certain other regulatory deductions divided by risk-weighted assets.

Key Ratios

Return on Average Assets: Ratio is annualized net income to average total assets.
Return on Average Common Equity: Ratio is annualized net income available to common shareholders to average common equity.
Return on Average Tangible Common Equity: Ratio is annualized net income available to common shareholders to average tangible common equity.
Noninterest Income as a Percentage of Total Revenue: Ratio is noninterest income to total revenue.
Efficiency Ratio: Ratio is noninterest expense to total revenue.
Leverage Ratio: Ratio is tier 1 capital to average assets for leverage.

Asset Quality - Consolidated Key Ratios

Nonperforming loans and leases ("NPL") %: Ratio is nonaccruing loans and leases in the loan portfolio to total period-end loans and leases.
Net charge-offs %: Ratio is annualized net charge-offs to total average loans and leases.
Allowance / loans and leases: Ratio is allowance for loan and lease losses to total period-end loans and leases.
Allowance / Nonperforming loans and leases: Ratio is allowance for loan and lease losses to nonperforming loans and leases in the loan portfolio.
Allowance / charge-offs: Ratio is allowance for loan and lease losses to annualized net charge-offs.

Operating Segments

Regional Banking segment: Offers financial products and services, including traditional lending and deposit taking, to consumer and commercial customers primarily in the southern and southeastern U.S. and other selected markets. Regional Banking also provides investment, wealth management, financial planning, trust and asset management services for consumer customers.
Specialty Banking segment: Consists of lines of business that deliver product offerings and services with specialized industry knowledge. Specialty Banking’s lines of business include asset-based lending, mortgage warehouse lending, commercial real estate, franchise finance, correspondent banking, equipment finance, mortgage, and title insurance. In addition to traditional lending and deposit taking, Specialty Banking also delivers treasury management solutions, loan syndications, international banking and SBA lending. Additionally, Specialty Banking has a line of business focused on fixed income securities sales, trading, underwriting, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory services, and derivative sales.
Corporate segment: Consists primarily of corporate support functions including risk management, audit, accounting, finance, executive office, and corporate communications. Shared support services such as human resources, properties, technology, credit risk and bank operations are allocated to the activities of Regional Banking, Specialty Banking, and Corporate. Additionally, the Corporate segment includes centralized management of capital and funding to support the business activities of the company including management of wholesale funding, liquidity, and capital management and allocation. Finally, the Corporate segment includes the revenue and expense associated with run-off businesses such as pre-2009 mortgage banking elements, run-off consumer and trust preferred loan portfolios, and other exited businesses.
27