EX-99.1 2 a1q2021earningsrelease.htm 1Q21 EARNINGS RELEASE

First Horizon Corporation Reports First Quarter Net Income Available to Common Shareholders of $225 million,
or EPS of $0.40; $284 million, or $0.51, on an Adjusted basis*
First quarter 2021 ROTCE of 15.9%; Adjusted ROTCE of 20.2% improved from 18.2% in fourth quarter 2020*
Tangible book value per share of $10.30 up 1% from fourth quarter 2020
MEMPHIS, TN (April 21, 2021) – First Horizon Corporation (NYSE: FHN or “First Horizon”) today reported first quarter 2021 net income available to common shareholders ("NIAC") of $225 million, or earnings per share of $0.40, compared with fourth quarter 2020 NIAC of $234 million, or earnings per share of $0.42. First quarter 2021 results were reduced by a net $60 million after-tax, or $0.11 per share, of notable items largely related to the IBERIABANK Corporation Merger ("IBKC Merger") compared with a net $20 million after-tax reduction, or $0.04 per share, in fourth quarter 2020. Excluding notable items, adjusted first quarter 2021 NIAC of $284 million, or $0.51 per share, increased from $255 million, or $0.46 per share in fourth quarter 2020.*
"Our balanced business model and countercyclical businesses continued to perform well in the first quarter," said President and Chief Executive Officer Bryan Jordan. "Credit quality improved, and our expense discipline resulted in incremental cost savings. Merger integration efforts are going well, and I am proud of our associates’ unwavering support of our clients and communities. Annualized merger-related cost savings totaled $76 million in the first quarter, and since the inception of the most recent phase of the Paycheck Protection Program, we have assisted clients and their employees by funding over 15,000 loans totaling approximately $1.5 billion."
Jordan continued, "Thank you to our associates for their extraordinary dedication to our clients and communities and focus on growing our business all while helping to bring our two companies together."
Notable and Unusual Items

Notable Items |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |
($s in millions, except per share data) | 1Q21 |  | 4Q20 |  |  |  |  |  | 1Q20 |  |  |  |
Summary of Notable Items: |  |  |  |  |  |  |  |  |  |  |  |  |
Purchase accounting gain | $ | 1 |  |  | $ | 1 |  |  |  |  |  |  | $ | — |  |  |  |  |
Merger/acquisition expense | (70) |  |  | (34) |  |  |  |  |  |  | (6) |  |  |  |  |
Other notable expense | (10) |  |  | — |  |  |  |  |  |  | — |  |  |  |  |
Total Notable items (pre-tax) | $ | (79) |  |  | $ | (33) |  |  |  |  |  |  | $ | (6) |  |  |  |  |
Total Notable items (after-tax) | (60) |  |  | (20) |  |  |  |  |  |  | (5) |  |  |  |  |
EPS impact of notable items | $ | (0.11) |  |  | $ | (0.04) |  |  |  |  |  |  | $ | (0.01) |  |  |  |  |

First quarter 2021 earnings were reduced by a net $60 million after-tax impact, or $0.11 per share, tied to notable items compared with a net $20 million impact, or $0.04 per share, in fourth quarter 2020. First quarter notable items largely related to the IBKC Merger and include:
•$70 million of merger-related expense largely tied to IBKC merger integration costs.
•$10 million tied to derivative valuation adjustments related to prior Visa Class-B share sales.
•$1 million purchase accounting gain adjustment related to the IBKC Merger.
*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.
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In addition to the above notable items, linked quarter adjusted trends were impacted by the following fourth quarter 2020 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.
First Quarter 2021 Highlights*
•Total revenue of $806 million remained relatively stable with fourth quarter 2020 levels as a reduction in net interest income was partially offset by higher noninterest income driven by strength in fixed income and brokerage, trust and insurance fees.
•Noninterest expense of $544 million increased $36 million from fourth quarter 2020 driven by a $46 million increase in notable items largely tied to the IBKC Merger. Adjusted noninterest expense of $464 million decreased $10 million from fourth quarter 2020 levels, in part reflecting the benefit of a $5 million increase in merger cost saves.
•Efficiency ratio of 68% compared with 63% in fourth quarter 2020. On an adjusted basis, efficiency improved to 57% compared with 58% in fourth quarter.
•Provision for credit losses benefit of $45 million improved $46 million from fourth quarter 2020, largely reflecting an improved overall macroeconomic outlook and included a $53 million decrease in allowance for credit losses.
•Average interest earning assets of $78.7 billion increased $1.7 billion largely as a $3.1 billion increase in excess cash was partially offset by a $1.6 billion decrease in loans given pandemic impacts on overall market conditions.
•Average deposits of $71.0 billion increased $1.3 billion, or 2%, driven by a $1.2 billion increase in noninterest- bearing deposits largely reflecting the impact of stimulus checks and Payroll Protection Program "PPP" loan funding.
•Allowance for credit losses to loans ratio decreased to 1.70% from 1.80% as of December 31, 2020, largely reflecting an improving macroeconomic outlook and strong asset quality; the allowance for loan losses to nonperforming loans ratio of 232% declined from 249% as of December 31, 2020.
•Net charge-offs of 0.06% decreased from 0.19% in fourth quarter 2020 reflecting continued improvement in overall asset quality; nonperforming loans of $394 million increased 2% from $386 million as of December 31, 2020. The nonperforming loan ratio of 0.67% remained relatively stable linked quarter.
•Tangible book value per share of $10.30 at March 31, 2021 increased 1% from $10.23 at December 31, 2020.
•ROCE of 12.0%; ROTCE of 15.9%; Adjusted ROTCE of 20.2%; CET 1 ratio of 10.0%; and total capital ratio of 12.8%.
•Repurchased 3.6 million shares of common stock during the quarter at a weighted average price of $16.12.
Strategic Update
•Progress across key merger milestones including conversion of mortgage and retail brokerage platform.
•Achieved $76 million of annualized net cost saves in first quarter 2021; on track to deliver a targeted $200 million of annualized cost saves.
•Expect to fully integrate systems in the Fall of 2021.
*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.
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COVID-19 Update
•Funded approximately $1.3 billion of new PPP loans in first quarter 2021 compared with $4.2 billion in full year 2020.
•Loans on deferral represented 0.7% of total loans excluding PPP as of March 31, 2021, compared with 0.9% at December 31, 2020.
*References to "Adjusted" results exclude notable items and are Non-GAAP Financial Measures. All references to loans include leases. All references to earnings per share are based on diluted shares. Please see page 7 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 22.
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SUMMARY RESULTS, Continued |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  | 1Q21 Change vs.
($s in millions, except per share and balance sheet data) |  | 1Q21 |  | 4Q20 |  | 1Q20 |  | 4Q20 |  | 1Q20
|  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |
Income Statement |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income - taxable equivalent 1 |  | $ | 555 |  |  | $ | 578 |  |  | $ | 381 |  |  | $ | (23) |  |  | (4) |  |  | $ | 174 |  |  | 46 |  |
Interest expense- taxable equivalent 1 |  | 45 |  |  | 53 |  |  | 76 |  |  | (8) |  |  | (15) |  |  | (31) |  |  | (41) |  |
Net interest income- taxable equivalent |  | 511 |  |  | 525 |  |  | 305 |  |  | (14) |  |  | (3) |  |  | 206 |  |  | 68 |  |
Less: Taxable-equivalent adjustment |  | 3 |  |  | 3 |  |  | 2 |  |  | — |  |  | — |  |  | 1 |  |  | 50 |  |
Net interest income |  | 508 |  |  | $ | 522 |  |  | $ | 303 |  |  | $ | (14) |  |  | (3) |  |  | 205 |  |  | 68 |  |
Noninterest income |  | 298 |  |  | 288 |  |  | 175 |  |  | 10 |  |  | 3 |  |  | 123 |  |  | 71 |  |
Total revenue |  | 806 |  |  | 810 |  |  | 478 |  |  | (4) |  |  | (1) |  |  | 328 |  |  | 69 |  |
Noninterest expense |  | 544 |  |  | 508 |  |  | 302 |  |  | 36 |  |  | 7 |  |  | 242 |  |  | 80 |  |
Pre-provision net revenue 3 |  | 262 |  |  | 302 |  |  | 175 |  |  | (40) |  |  | (13) |  |  | 87 |  |  | 49 |  |
Provision for credit losses 4 |  | (45) |  |  | 1 |  |  | 154 |  |  | (46) |  |  | NM |  | (199) |  |  | (129) |  |
Income before income taxes |  | 307 |  |  | 301 |  |  | 21 |  |  | 6 |  |  | 2 |  |  | 286 |  |  | NM |
Provision for income taxes |  | 71 |  |  | 56 |  |  | 5 |  |  | 15 |  |  | 26 |  |  | 66 |  |  | NM |
Net income |  | 235 |  |  | 245 |  |  | 16 |  |  | (10) |  |  | (4) |  |  | 219 |  |  | NM |
Net income attributable to noncontrolling interest |  | 3 |  |  | 3 |  |  | 3 |  |  | — |  |  | 6 |  |  | — |  |  | 5 |  |
Net income attributable to controlling interest |  | 233 |  |  | 242 |  |  | 14 |  |  | (9) |  |  | (4) |  |  | 219 |  |  | NM |
Preferred stock dividends |  | 8 |  |  | 8 |  |  | 2 |  |  | — |  |  | 5 |  |  | 6 |  |  | NM |
Net income available to common shareholders |  | $ | 225 |  |  | $ | 234 |  |  | $ | 12 |  |  | $ | (9) |  |  | (4) |  |  | $ | 213 |  |  | NM |
Adjusted net income 5 |  | $ | 295 |  |  | $ | 265 |  |  | $ | 21 |  |  | $ | 30 |  |  | 11 |  |  | $ | 274 |  |  | NM |
Adjusted net income available to common shareholders 5 |  | $ | 284 |  |  | $ | 255 |  |  | $ | 17 |  |  | $ | 30 |  |  | 12 |  |  | $ | 267 |  |  | NM |
Common stock information |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS |  | $ | 0.40 |  |  | $ | 0.42 |  |  | $ | 0.04 |  |  | $ | (0.02) |  |  | (5) |  |  | $ | 0.36 |  |  | NM |
Adjusted EPS 5 |  | $ | 0.51 |  |  | $ | 0.46 |  |  | $ | 0.05 |  |  | $ | 0.05 |  |  | 11 |  |  | $ | 0.46 |  |  | NM |
Diluted shares |  | 558 |  |  | 557 |  |  | 313 |  |  | 1 |  |  | — |  |  | 245 |  |  | 78 |  |
Key performance metrics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest margin |  | 2.63 | % |  | 2.71 | % |  | 3.16 | % |  | (8) | bp |  |  |  | (53) | bp |  |  |
Efficiency ratio |  | 67.53 |  |  | 62.71 |  |  | 63.26 |  |  | 482 |  |  |  |  | 427 |  |  |  |
Adjusted efficiency ratio 5 |  | 57.49 |  |  | 58.34 |  |  | 61.76 |  |  | (85) |  |  |  |  | (427) |  |  |  |
Effective income tax rate |  | 23.24 |  |  | 18.70 |  |  | 22.44 |  |  | 454 |  |  |  |  | 80 |  |  |  |
Return on average assets |  | 1.12 |  |  | 1.16 |  |  | 0.15 |  |  | (4) |  |  |  |  | 97 |  |  |  |
Adjusted return on average assets 5 |  | 1.40 |  |  | 1.26 |  |  | 0.19 |  |  | 14 |  |  |  |  | 121 |  |  |  |
Return on average common equity (“ROCE") |  | 12.01 |  |  | 12.53 |  |  | 1.05 |  |  | (52) |  |  |  |  | 1,096 |  |  |  |
Return on average tangible common equity (“ROTCE”)5 |  | 15.90 |  |  | 16.73 |  |  | 1.59 |  |  | (83) |  |  |  |  | 1,431 |  |  |  |
Adjusted ROTCE 5 |  | 20.15 |  |  | 18.18 |  |  | 2.19 |  |  | 197 |  |  |  |  | 1,796 |  |  |  |
Noninterest income as a % of total revenue |  | 37.00 |  |  | 35.61 |  |  | 36.59 |  |  | 139 |  |  |  |  | 41 |  |  |  |
Adjusted noninterest income as a % of total revenue 5 |  | 36.78 | % |  | 35.42 | % |  | 36.42 | % |  | 136 | bp |  |  |  | 36 | bp |  |  |
Balance Sheet (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average loans |  | $ | 58.2 |  |  | $ | 59.8 |  |  | $ | 30.5 |  |  | $ | (1.6) |  |  | (3) |  |  | $ | 27.7 |  |  | 91 |  |
Average deposits |  | 71.0 |  |  | 69.6 |  |  | 32.9 |  |  | 1.3 |  |  | 2 |  |  | 38.1 |  |  | 116 |  |
Average assets |  | 85.4 |  |  | 83.8 |  |  | 43.6 |  |  | 1.6 |  |  | 2 |  |  | 41.8 |  |  | 96 |  |
Average common equity |  | $ | 7.6 |  |  | $ | 7.4 |  |  | $ | 4.6 |  |  | $ | 0.1 |  |  | 2 |  |  | $ | 3.0 |  |  | 64 |  |
Asset Quality Highlights |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses to loans and leases |  | 1.70 | % |  | 1.80 | % |  | 1.45 | % |  | (10) | bp |  |  |  | 25 | bp |  |  |
Net charge-off ratio |  | 0.06 |  |  | 0.19 |  |  | 0.10 |  |  | (14) |  |  |  |  | (4) |  |  |  |
Nonperforming loan and leases ratio |  | 0.67 | % |  | 0.66 | % |  | 0.57 | % |  | 1 | bp |  |  |  | 10 | bp |  |  |
Capital Ratio Highlights (current quarter is an estimate) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common Equity Tier 1 |  | 9.96 | % |  | 9.68 | % |  | 8.54 | % |  | 28 | bp |  |  |  | 142 | bp |  |  |
Tier 1 |  | 11.03 |  |  | 10.74 |  |  | 9.52 |  |  | 29 |  |  |  |  | 151 |  |  |  |
Total Capital |  | 12.83 |  |  | 12.57 |  |  | 10.78 |  |  | 26 |  |  |  |  | 205 |  |  |  |
Tier 1 leverage |  | 8.20 | % |  | 8.24 | % |  | 9.00 | % |  | (4) | 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.
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First Quarter 2021 versus Fourth Quarter 2020
Net interest income
Net interest income of $508 million declined $14 million from fourth quarter 2020. Results were driven by the impact of a decrease in average loans, day count and lower short-term rates partially offset by improved funding costs. Net interest margin of 2.63% decreased from 2.71% in the prior quarter, largely driven by a 10 basis point reduction tied to excess cash. Core net interest margin, excluding the impact of net merger accounting accretion and PPP loans decreased 10 basis points partially offset by a 3 basis point benefit tied to a reduction in unusual items.
Noninterest income
Noninterest income of $298 million increased $10 million from fourth quarter 2020. Results reflect strength in fixed income and brokerage, trust and insurance partially offset by lower deferred compensation, mortgage banking and title fees and other noninterest income. Fixed income average daily revenue of $1.9 million improved from $1.5 million in fourth quarter 2020 reflecting the impact of continued overall economic factors including elevated liquidity levels and weak loan demand, as well as interest rate volatility.
Noninterest expense
Noninterest expense of $544 million increased $36 million from fourth quarter 2020 driven by a net $46 million increase in notable items largely related to the IBKC merger. Adjusted noninterest expense of $464 million decreased $10 million from fourth quarter 2020 as a modest increase in outside services was more than offset by reductions in other categories.
Loans and leases
Average loan and lease balances of $58.2 billion decreased $1.6 billion from fourth quarter 2020 reflecting an $893 million decrease in commercial and a $705 million decrease in consumer. Commercial loans trends largely reflected a $972 million decrease in loans to mortgage companies. Period-end loans and leases of $58.6 billion increased $368 million from fourth quarter 2020 largely driven by a $1.0 billion increase in commercial largely tied to PPP loans, offset by a $675 million decrease in consumer.
Deposits
Average deposits of $71.0 billion increased $1.3 billion from fourth quarter 2020 driven by a $1.2 billion increase in noninterest-bearing deposits largely reflecting the impact of stimulus checks and balance increases tied to PPP loans. Period-end deposits of $73.2 billion at March 31, 2021, increased $3.2 billion from $70.0 billion at December 31, 2020 driven by growth in noninterest-bearing deposits. Interest-bearing deposit costs of 20 basis points improved 6 basis points linked quarter, reflecting continued pricing discipline.
Asset quality
Provision for credit losses benefit of $45 million compared to expense of $1 million in fourth quarter 2020, largely reflecting continued improvement in the overall macroeconomic outlook and a reduction in consumer loans.
Net charge-offs of $8 million, or 6 basis points, improved from $29 million, or 19 basis points, in fourth quarter 2020
reflecting continued improvement in overall asset quality.
Nonperforming loans of $394 million increased $7 million from fourth quarter 2020 driven by an increase in commercial real estate. First quarter 2021 allowance to nonperforming coverage ratio of 232% compared with 249% in fourth quarter 2020. First quarter 2021 nonperforming loans to loans ratio of 67 basis points compared with 66 basis points at fourth quarter 2020.
The allowance for credit losses to loans ratio decreased to 1.70% from 1.80% in fourth quarter 2020 reflecting an overall improvement in the macroeconomic environment and asset quality.
*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.
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Capital
CET1 ratio of 10.0% in first quarter 2021 improved from 9.7% in fourth quarter 2020. The improvement was driven by growth in retained earnings and a reduction in risk-weighted assets tied to lower loan balances; the increase was partially offset by capital return through share repurchases and dividends.
On January 27, 2021, the board of directors authorized the company to repurchase up to $500 million of common stock. The board also approved payment of a quarterly cash dividend on its common stock of $0.15 per share. The dividend was paid April 1, 2021. Additionally, the board approved payment of cash dividends on First Horizon’s Series A, Series C, Series D and Series E Preferred Stock.
Returned $143 million in capital to common stockholders during the quarter including $58 million, or 3.6 million shares, of common stock repurchases at a weighted average price of $16.12.
Income taxes
The first quarter 2021 effective tax rate of 23.2% increased from fourth quarter 2020 level of 18.7%. On an adjusted basis, the effective tax rate of 23.4% in first quarter 2021 increased from 20.7% in fourth quarter 2020.
Conference call information
Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on April 21 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 3384998. 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 April 21 until midnight CT on May 5 . To listen to the replay, dial 1-877-344-7529 (U.S. callers) or 412-317-0088 (international callers); the access code is 10152345. 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 document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements pertain to FHN's beliefs, plans, goals, expectations, and estimates. Forward-looking statements are not a representation of historical information, but instead pertain to future operations, strategies, financial results, or other developments. Forward-looking statements can be identified by the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “should,” “is likely,” “will,” “going forward,” and other expressions that indicate future events and trends.
Forward-looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, operational, economic, and competitive uncertainties and contingencies, many of which are beyond FHN’s control, and many of which, with respect to future business decisions and actions (including acquisitions and divestitures), are subject to change and could cause FHN’s actual future results and outcomes to differ materially from those contemplated or implied by forward-looking statements or historical performance. Examples of uncertainties and contingencies include those mentioned in this document, in Items 2.02 and 7.01 of FHN’s Current Report on Form 8-K to which this document has been filed as an exhibit, in Items 1, 1A, and 7 of FHN’s most recent Annual Report on Form 10-K, and in Item 1A of Part II of FHN’s Quarterly Report(s) on Form 10-Q filed this year.
FHN assumes no obligation to update or revise any forward-looking statements that are made in this document or in any other statement, release, report, or filing from time to time.
*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.
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Use of Non-GAAP Measures and Regulatory Measures that are not GAAP
Certain measures included in this report are “non-GAAP,” meaning they are not presented in accordance with generally accepted accounting principles 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.
The non-GAAP measures presented in this earnings release are interest income and interest expense on a taxable equivalent basis, 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.
Presentation of regulatory measures, even those which are not GAAP, provide a meaningful base for comparability to other financial institutions subject to the same regulations as FHN, as demonstrated by their use by banking regulators in reviewing capital adequacy of financial institutions. 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 ("CET1"), 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, which is a measure of total on- and off-balance sheet assets adjusted for credit and market risk, used to determine regulatory capital ratios.
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.
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CONSOLIDATED INCOME STATEMENT |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | 1Q21 Change vs. |
($s in millions, except per share data) | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q20 |  | 1Q20 |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Interest income - taxable equivalent 1 | $ | 555 |  |  | $ | 578 |  |  | $ | 601 |  |  | $ | 349 |  |  | $ | 381 |  |  | $ | (23) |  |  | (4) | % |  | $ | 174 |  |  | 46 | % |
Interest expense- taxable equivalent 1 | 45 |  |  | 53 |  |  | 66 |  |  | 41 |  |  | 76 |  |  | (8) |  |  | (15) |  |  | (31) |  |  | (41) |  |
Net interest income- taxable equivalent | 511 |  |  | 525 |  |  | 535 |  |  | 308 |  |  | 305 |  |  | (14) |  |  | (3) |  |  | 206 |  |  | 68 |  |
Less: Taxable-equivalent adjustment | 3 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | 2 |  |  | — |  |  | — |  |  | 1 |  |  | 50 |  |
Net interest income | 508 |  |  | 522 |  |  | 532 |  |  | 305 |  |  | 303 |  |  | (14) |  |  | (3) |  |  | 205 |  |  | 68 |  |
Noninterest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income | 126 |  |  | 104 |  |  | 111 |  |  | 112 |  |  | 96 |  |  | 22 |  |  | 21 |  |  | 30 |  |  | 32 |  |
Mortgage banking and title | 53 |  |  | 57 |  |  | 66 |  |  | 4 |  |  | 2 |  |  | (4) |  |  | (7) |  |  | 51 |  |  | NM |
Brokerage, trust, and insurance | 33 |  |  | 31 |  |  | 30 |  |  | 22 |  |  | 23 |  |  | 2 |  |  | 5 |  |  | 10 |  |  | 41 |  |
Service charges and fees | 53 |  |  | 53 |  |  | 50 |  |  | 35 |  |  | 36 |  |  | — |  |  | — |  |  | 17 |  |  | 49 |  |
Card and digital banking fees | 17 |  |  | 18 |  |  | 17 |  |  | 12 |  |  | 12 |  |  | (1) |  |  | (7) |  |  | 5 |  |  | 36 |  |
Deferred compensation income | 3 |  |  | 9 |  |  | 4 |  |  | 8 |  |  | (10) |  |  | (6) |  |  | (65) |  |  | 13 |  |  | 132 |  |
Other noninterest income 2 | 15 |  |  | 16 |  |  | 546 |  |  | 12 |  |  | 15 |  |  | (1) |  |  | (6) |  |  | — |  |  | 1 |  |
Total noninterest income | 298 |  |  | 288 |  |  | 823 |  |  | 206 |  |  | 175 |  |  | 10 |  |  | 3 |  |  | 123 |  |  | 71 |  |
Total revenue | 806 |  |  | 810 |  |  | 1,355 |  |  | 512 |  |  | 478 |  |  | (4) |  |  | (1) |  |  | 328 |  |  | 69 |  |
Noninterest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits | 196 |  |  | 200 |  |  | 201 |  |  | 111 |  |  | 113 |  |  | (4) |  |  | (2) |  |  | 83 |  |  | 74 |  |
Incentives and commissions | 120 |  |  | 110 |  |  | 126 |  |  | 79 |  |  | 81 |  |  | 10 |  |  | 9 |  |  | 39 |  |  | 48 |  |
Deferred compensation expense | 3 |  |  | 9 |  |  | 3 |  |  | 9 |  |  | (10) |  |  | (6) |  |  | (67) |  |  | 13 |  |  | 129 |  |
Total personnel expense | 318 |  |  | 319 |  |  | 329 |  |  | 200 |  |  | 183 |  |  | (1) |  |  | — |  |  | 135 |  |  | 73 |  |
Occupancy and equipment | 76 |  |  | 76 |  |  | 77 |  |  | 46 |  |  | 44 |  |  | — |  |  | — |  |  | 32 |  |  | 72 |  |
Outside services | 58 |  |  | 59 |  |  | 78 |  |  | 38 |  |  | 38 |  |  | (1) |  |  | (1) |  |  | 20 |  |  | 51 |  |
Amortization of intangible assets | 14 |  |  | 15 |  |  | 15 |  |  | 5 |  |  | 5 |  |  | (1) |  |  | (5) |  |  | 9 |  |  | NM |
Other noninterest expense | 78 |  |  | 39 |  |  | 89 |  |  | 31 |  |  | 31 |  |  | 39 |  |  | 100 |  |  | 47 |  |  | NM |
Total noninterest expense | 544 |  |  | 508 |  |  | 587 |  |  | 321 |  |  | 302 |  |  | 36 |  |  | 7 |  |  | 242 |  |  | 80 |  |
Pre-provision net revenue 3 | 262 |  |  | 302 |  |  | 768 |  |  | 191 |  |  | 175 |  |  | (40) |  |  | (13) |  |  | 87 |  |  | 49 |  |
Provision for credit losses 4 | (45) |  |  | 1 |  |  | 227 |  |  | 121 |  |  | 154 |  |  | (46) |  |  | NM |  | (199) |  |  | (129) |  |
Income before income taxes | 307 |  |  | 301 |  |  | 541 |  |  | 69 |  |  | 21 |  |  | 6 |  |  | 2 |  |  | 286 |  |  | NM |
Provision for income taxes | 71 |  |  | 56 |  |  | 2 |  |  | 13 |  |  | 5 |  |  | 15 |  |  | 26 |  |  | 66 |  |  | NM |
Net income | 235 |  |  | 245 |  |  | 539 |  |  | 57 |  |  | 16 |  |  | (10) |  |  | (4) |  |  | 219 |  |  | NM |
Net income attributable to noncontrolling interest | 3 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | — |  |  | 6 |  |  | — |  |  | 5 |  |
Net income attributable to controlling interest | 233 |  |  | 242 |  |  | 536 |  |  | 54 |  |  | 14 |  |  | (9) |  |  | (4) |  |  | 219 |  |  | NM |
Preferred stock dividends | 8 |  |  | 8 |  |  | 13 |  |  | 2 |  |  | 2 |  |  | — |  |  | 5 |  |  | 6 |  |  | NM |
Net income available to common shareholders | $ | 225 |  |  | $ | 234 |  |  | $ | 523 |  |  | $ | 52 |  |  | $ | 12 |  |  | $ | (9) |  |  | (4) | % |  | $ | 213 |  |  | NM |
Common Share Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS | $ | 0.41 |  |  | $ | 0.42 |  |  | $ | 0.95 |  |  | $ | 0.17 |  |  | $ | 0.04 |  |  | $ | (0.01) |  |  | (2) |  |  | $ | 0.37 |  |  | NM |
Basic shares | 552 |  |  | 553 |  |  | 550 |  |  | 312 |  |  | 312 |  |  | (1) |  |  | — |  |  | 240 |  |  | 77 |  |
Diluted EPS | $ | 0.40 |  |  | $ | 0.42 |  |  | $ | 0.95 |  |  | $ | 0.17 |  |  | $ | 0.04 |  |  | $ | (0.02) |  |  | (5) |  |  | $ | 0.36 |  |  | NM |
Diluted shares | 558 |  |  | 557 |  |  | 551 |  |  | 313 |  |  | 313 |  |  | 1 |  |  | — |  |  | 245 |  |  | 78 |  |
Effective tax rate | 23.2 | % |  | 18.7 | % |  | 0.4 | % |  | 18.4 | % |  | 22.4 | % |  |  |  |  |  |  |  |  |

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

ADJUSTED 5 FINANCIAL DATA - SEE NOTABLE ITEMS ON PAGE 10
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 1Q21 Change vs.
($s in millions, except per share data) | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q20 |  | 1Q20 |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Net interest income (FTE)1 | $ | 511 |  |  | $ | 525 |  |  | $ | 535 |  |  | $ | 308 |  |  | $ | 305 |  |  | $ | (14) |  |  | (3) | % |  | $ | 206 |  |  | 68 | % |
Adjusted noninterest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income | 126 |  |  | 104 |  |  | 111 |  |  | 112 |  |  | 96 |  |  | 22 |  |  | 21 |  |  | 30 |  |  | 31 |  |
Mortgage banking and title | 53 |  |  | 57 |  |  | 66 |  |  | 4 |  |  | 2 |  |  | (4) |  |  | (7) |  |  | 51 |  |  | NM |
Brokerage, trust, and insurance | 33 |  |  | 31 |  |  | 30 |  |  | 22 |  |  | 23 |  |  | 2 |  |  | 5 |  |  | 10 |  |  | 43 |  |
Service charges and fees | 53 |  |  | 53 |  |  | 50 |  |  | 35 |  |  | 36 |  |  | — |  |  | — |  |  | 17 |  |  | 47 |  |
Card and digital banking fees | 17 |  |  | 18 |  |  | 17 |  |  | 12 |  |  | 12 |  |  | (1) |  |  | (7) |  |  | 5 |  |  | 42 |  |
Deferred compensation income | 3 |  |  | 9 |  |  | 4 |  |  | 8 |  |  | (10) |  |  | (6) |  |  | (65) |  |  | 13 |  |  | 130 |  |
Adjusted other noninterest income | 14 |  |  | 15 |  |  | 14 |  |  | 12 |  |  | 15 |  |  | (1) |  |  | (6) |  |  | (1) |  |  | (7) |  |
Adjusted total noninterest income | $ | 297 |  |  | $ | 288 |  |  | $ | 291 |  |  | $ | 206 |  |  | $ | 175 |  |  | $ | 10 |  |  | 3 | % |  | $ | 122 |  |  | 70 | % |
Total revenue (FTE)1 | $ | 808 |  |  | $ | 813 |  |  | $ | 826 |  |  | $ | 514 |  |  | $ | 480 |  |  | $ | (5) |  |  | (1) | % |  | $ | 328 |  |  | 68 | % |
Adjusted noninterest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted personnel expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted salaries and benefits | $ | 195 |  |  | $ | 200 |  |  | $ | 200 |  |  | $ | 107 |  |  | $ | 112 |  |  | $ | (5) |  |  | (3) | % |  | $ | 83 |  |  | 74 | % |
Adjusted Incentives and commissions | 99 |  |  | 89 |  |  | 91 |  |  | 79 |  |  | 81 |  |  | 10 |  |  | 11 | % |  | 18 |  |  | 22 |  |
Deferred compensation expense | 3 |  |  | 9 |  |  | 3 |  |  | 9 |  |  | (10) |  |  | (6) |  |  | (67) | % |  | 13 |  |  | 130 |  |
Adjusted total personnel expense | 297 |  |  | 298 |  |  | 294 |  |  | 195 |  |  | 182 |  |  | (1) |  |  | — | % |  | 115 |  |  | 63 |  |
Adjusted occupancy and equipment | 72 |  |  | 74 |  |  | 73 |  |  | 46 |  |  | 44 |  |  | (2) |  |  | (3) | % |  | 28 |  |  | 64 |  |
Adjusted outside services | 54 |  |  | 52 |  |  | 46 |  |  | 33 |  |  | 37 |  |  | 2 |  |  | 4 | % |  | 17 |  |  | 46 |  |
Adjusted amortization of intangible assets | 13 |  |  | 14 |  |  | 14 |  |  | 5 |  |  | 5 |  |  | (1) |  |  | (5) | % |  | 8 |  |  | NM |
Adjusted other noninterest expense | 28 |  |  | 35 |  |  | 45 |  |  | 27 |  |  | 28 |  |  | (7) |  |  | (20) | % |  | — |  |  | — |  |
Adjusted total noninterest expense | $ | 464 |  |  | $ | 474 |  |  | $ | 471 |  |  | $ | 307 |  |  | $ | 296 |  |  | $ | (10) |  |  | (2) | % |  | $ | 168 |  |  | 57 | % |
Adjusted pre-provision net revenue 5 | $ | 343 |  |  | $ | 339 |  |  | $ | 355 |  |  | $ | 207 |  |  | $ | 183 |  |  | $ | 4 |  |  | 1 | % |  | $ | 160 |  |  | 87 | % |
Adjusted provision for credit losses 4 | $ | (45) |  |  | $ | 1 |  |  | $ | 80 |  |  | $ | 121 |  |  | $ | 154 |  |  | $ | (46) |  |  | NM |  | $ | (199) |  |  | (129) | % |
Adjusted net income available to common shareholders | $ | 284 |  |  | $ | 255 |  |  | $ | 193 |  |  | $ | 64 |  |  | $ | 17 |  |  | $ | 30 |  |  | 12 | % |  | $ | 267 |  |  | NM |
Adjusted Common Share Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted diluted EPS | $ | 0.51 |  |  | $ | 0.46 |  |  | $ | 0.35 |  |  | $ | 0.20 |  |  | $ | 0.05 |  |  | $ | 0.05 |  |  | 11 | % |  | $ | 0.46 |  |  | NM |
Diluted shares | 558 |  |  | 557 |  |  | 551 |  |  | 313 |  |  | 313 |  |  | 1 |  |  | — | % |  | 245 |  |  | 78 | % |
Adjusted effective tax rate | 23.4 | % |  | 20.7 | % |  | 23.3 | % |  | 18.3 | % |  | 22.2 | % |  |  |  |  |  |  |  |  |
Adjusted ROTCE | 20.2 | % |  | 18.2 | % |  | 13.9 | % |  | 8.3 | % |  | 2.2 | % |  |  |  |  |  |  |  |  |
Adjusted efficiency ratio | 57.5 | % |  | 58.3 | % |  | 57.1 | % |  | 59.7 | % |  | 61.8 | % |  |  |  |  |  |  |  |  |

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

NOTABLE ITEMS
Quarterly, Unaudited

(In millions) | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |
Summary of Notable Items: |  |  |  |  |  |  |  |  |  |
Purchase accounting gain | $ | 1 |  |  | $ | 1 |  |  | $ | 532 |  |  | $ | — |  |  | $ | — |  |
Merger/acquisition non-PCD provision expense | — |  |  | — |  |  | (147) |  |  | — |  |  | — |  |
Merger/acquisition expense* | (70) |  |  | (34) |  |  | (101) |  |  | (14) |  |  | (6) |  |
Charitable contributions | — |  |  | — |  |  | (15) |  |  | — |  |  | — |  |
Other notable expenses | (10) |  |  | — |  |  | — |  |  | — |  |  | — |  |
Total notable items | $ | (79) |  |  | $ | (33) |  |  | $ | 269 |  |  | $ | (14) |  |  | $ | (6) |  |
EPS impact of notable items | $ | (0.11) |  |  | $ | (0.04) |  |  | $ | 0.60 |  |  | $ | (0.04) |  |  | $ | (0.01) |  |

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, Unaudited

(In millions) | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |
Impacts of Notable Items: |  |  |  |  |  |  |  |  |  |
Noninterest income: |  |  |  |  |  |  |  |  |  |
Other noninterest income | $ | (1) |  |  | $ | (1) |  |  | $ | (532) |  |  | $ | — |  |  | $ | — |  |
Total noninterest income | $ | (1) |  |  | $ | (1) |  |  | $ | (532) |  |  | $ | — |  |  | $ | — |  |
Noninterest expense: |  |  |  |  |  |  |  |  |  |
Personnel expenses: |  |  |  |  |  |  |  |  |  |
Salaries and benefits | $ | — |  |  | $ | — |  |  | $ | (1) |  |  | $ | (5) |  |  | $ | (1) |  |
Incentives and commissions | (21) |  |  | (21) |  |  | (34) |  |  | — |  |  | — |  |
Deferred compensation expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
Total personnel expenses | (21) |  |  | (21) |  |  | (35) |  |  | (5) |  |  | (1) |  |
Occupancy and equipment | (4) |  |  | (2) |  |  | (4) |  |  | — |  |  | — |  |
Outside services | (4) |  |  | (7) |  |  | (32) |  |  | (5) |  |  | (2) |  |
Amortization of intangible assets | (1) |  |  | (1) |  |  | (1) |  |  | — |  |  | — |  |
Other noninterest expense | (50) |  |  | (4) |  |  | (44) |  |  | (4) |  |  | (3) |  |
Total noninterest expense | $ | (80) |  |  | $ | (34) |  |  | $ | (116) |  |  | $ | (14) |  |  | $ | (6) |  |
Provision for credit losses | $ | — |  |  | $ | — |  |  | $ | (147) |  |  | $ | — |  |  | $ | — |  |
Income before income taxes | $ | 79 |  |  | $ | 33 |  |  | $ | (269) |  |  | $ | 14 |  |  | $ | 6 |  |
Provision for income taxes | 19 |  |  | 13 |  |  | 61 |  |  | 3 |  |  | 1 |  |
Net income/(loss) available to common shareholders | $ | 60 |  |  | $ | 20 |  |  | $ | (331) |  |  | $ | 12 |  |  | $ | 5 |  |

Numbers may not foot due to rounding

10

FINANCIAL RATIOS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | 1Q21 change vs. |
| 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q20 | 1Q20 |
FINANCIAL RATIOS |  |  |  |  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |
Net interest margin | 2.63 | % |  | 2.71 | % |  | 2.84 | % |  | 2.90 | % |  | 3.16 | % |  | (8) | bp |  |  |  | (53) | bp |  |  |
Return on average assets | 1.12 | % |  | 1.16 | % |  | 2.63 | % |  | 0.48 | % |  | 0.15 | % |  | (4) |  |  |  |  | 97 |  |  |  |
Adjusted return on average assets 5 | 1.40 | % |  | 1.26 | % |  | 1.01 | % |  | 0.57 | % |  | 0.19 | % |  | 14 |  |  |  |  | 121 |  |  |  |
Return on average common equity (“ROCE”) | 12.01 | % |  | 12.53 | % |  | 28.49 | % |  | 4.50 | % |  | 1.05 | % |  | (52) |  |  |  |  | 1,096 |  |  |  |
Return on average tangible common equity (“ROTCE”)5 | 15.90 | % |  | 16.73 | % |  | 37.75 | % |  | 6.74 | % |  | 1.59 | % |  | (83) |  |  |  |  | 1,431 |  |  |  |
Adjusted ROTCE 5 | 20.15 | % |  | 18.18 | % |  | 13.90 | % |  | 8.26 | % |  | 2.19 | % |  | 197 |  |  |  |  | 1,796 |  |  |  |
Noninterest income as a % of total revenue | 37.00 | % |  | 35.61 | % |  | 60.72 | % |  | 40.32 | % |  | 36.59 | % |  | 139 |  |  |  |  | 41 |  |  |  |
Adjusted noninterest income as a % of total revenue 5 | 36.78 | % |  | 35.42 | % |  | 35.20 | % |  | 40.12 | % |  | 36.42 | % |  | 136 |  |  |  |  | 36 |  |  |  |
Efficiency ratio | 67.53 | % |  | 62.71 | % |  | 43.31 | % |  | 62.74 | % |  | 63.26 | % |  | 482 |  |  |  |  | 427 |  |  |  |
Adjusted efficiency ratio 5 | 57.49 | % |  | 58.34 | % |  | 57.06 | % |  | 59.65 | % |  | 61.76 | % |  | (85) |  |  |  |  | (427) |  |  |  |
CAPITAL - PERIOD END |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CET1 capital ratio* | 9.96 | % |  | 9.68 | % |  | 9.21 | % |  | 9.25 | % |  | 8.54 | % |  | 28 | bp |  |  |  | 142 | bp |  |  |
Tier 1 capital ratio* | 11.03 | % |  | 10.74 | % |  | 10.25 | % |  | 10.69 | % |  | 9.52 | % |  | 29 | bp |  |  |  | 151 | bp |  |  |
Total capital ratio* | 12.83 | % |  | 12.57 | % |  | 12.05 | % |  | 12.47 | % |  | 10.78 | % |  | 26 | bp |  |  |  | 205 | bp |  |  |
Tier 1 leverage ratio* | 8.20 | % |  | 8.24 | % |  | 8.25 | % |  | 8.55 | % |  | 9.00 | % |  | (4) | bp |  |  |  | (80) | bp |  |  |
Risk-weighted assets (“RWA”) (billions) | $ | 62.4 |  |  | $ | 63.1 |  |  | $ | 64.5 |  |  | $ | 37.4 |  |  | $ | 40.1 |  |  | $ | (1) |  |  | (1) | % |  | $ | 22 |  |  | 56 | % |
Total equity to total assets | 9.49 | % |  | 9.86 | % |  | 9.81 | % |  | 10.71 | % |  | 10.71 | % |  | (37) | bp |  |  |  | (122) | bp |  |  |
Tangible common equity/tangible assets (“TCE/TA”)5 | 6.64 | % |  | 6.89 | % |  | 6.78 | % |  | 6.63 | % |  | 6.81 | % |  | (25) | bp |  |  |  | (17) | bp |  |  |
Period-end shares outstanding (millions) | 552 |  |  | 555 |  |  | 555 |  |  | 312 |  |  | 312 |  |  | (3) |  |  | — |  |  | 241 |  |  | 77 | % |
Cash dividends declared per common share | $ | 0.15 |  |  | $ | 0.15 |  |  | $ | 0.15 |  |  | $ | 0.15 |  |  | $ | 0.15 |  |  | $ | — |  |  | — |  |  | $ | — |  |  | — |  |
Book value per common share | $ | 13.65 |  |  | $ | 13.59 |  |  | $ | 13.30 |  |  | $ | 14.96 |  |  | $ | 14.96 |  |  | $ | 0.06 |  |  | — |  |  | $ | (1.31) |  |  | (9) | % |
Tangible book value per common share 5 | $ | 10.30 |  |  | $ | 10.23 |  |  | $ | 9.92 |  |  | $ | 9.99 |  |  | $ | 9.96 |  |  | $ | 0.07 |  |  | 1 | % |  | $ | 0.34 |  |  | 3 | % |
SELECTED BALANCE SHEET DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans-to-deposit ratio (period-end balances) | 80.09 | % |  | 83.21 | % |  | 87.28 | % |  | 86.62 | % |  | 96.97 | % |  | (312) | bp |  |  |  | (1,688) | bp |  |  |
Loans-to-deposit ratio (average balances) | 82.02 | % |  | 85.90 | % |  | 89.59 | % |  | 90.52 | % |  | 92.83 | % |  | (388) | bp |  |  |  | (1,080) | bp |  |  |
Full-time equivalent associates | 8,284 |  |  | 8,466 |  |  | 8,121 |  |  | 5,006 |  |  | 4,969 |  |  | (182) |  |  | (2) | % |  | 3,315 |  |  | 67 | % |

Certain previously reported amounts have been reclassified to agree with current presentation
*Current quarter is an estimate.
See footnote disclosures on page 21.
11

CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 1Q21 change vs.
(In millions) | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q20 |  |  | 1Q20
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  |  | $ |  | % |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) | $ | 33,951 |  |  | $ | 33,103 |  |  | $ | 33,656 |  |  | $ | 21,394 |  |  | $ | 22,124 |  |  | $ | 848 |  |  | 3 | % |  |  | $ | 11,827 |  |  | 53 | % |
Commercial real estate | 12,470 |  |  | 12,275 |  |  | 12,511 |  |  | 4,813 |  |  | 4,640 |  |  | 195 |  |  | 2 |  |  |  | 7,830 |  |  | NM |
Total Commercial | 46,421 |  |  | 45,379 |  |  | 46,167 |  |  | 26,207 |  |  | 26,764 |  |  | 1,042 |  |  | 2 |  |  |  | 19,657 |  |  | 73 |  |
Consumer real estate | 11,053 |  |  | 11,725 |  |  | 12,328 |  |  | 6,052 |  |  | 6,119 |  |  | (672) |  |  | (6) |  |  |  | 4,933 |  |  | 81 |  |
Credit card and other 6 | 1,126 |  |  | 1,128 |  |  | 1,212 |  |  | 449 |  |  | 495 |  |  | (2) |  |  | — |  |  |  | 631 |  |  | 128 |  |
Total Consumer | 12,178 |  |  | 12,853 |  |  | 13,540 |  |  | 6,502 |  |  | 6,614 |  |  | (675) |  |  | (5) |  |  |  | 5,564 |  |  | 84 |  |
Loans and leases, net of unearned income | 58,600 |  |  | 58,232 |  |  | 59,707 |  |  | 32,709 |  |  | 33,378 |  |  | 368 |  |  | 1 |  |  |  | 25,221 |  |  | 76 |  |
Loans held for sale | 811 |  |  | 1,022 |  |  | 1,051 |  |  | 746 |  |  | 596 |  |  | (211) |  |  | (21) |  |  |  | 215 |  |  | 36 |  |
Investment securities | 8,361 |  |  | 8,057 |  |  | 8,006 |  |  | 5,486 |  |  | 4,555 |  |  | 304 |  |  | 4 |  |  |  | 3,806 |  |  | 84 |  |
Trading securities | 1,076 |  |  | 1,176 |  |  | 1,386 |  |  | 1,116 |  |  | 1,878 |  |  | (100) |  |  | (9) |  |  |  | (801) |  |  | (43) |  |
Interest-bearing deposits with banks | 11,635 |  |  | 8,351 |  |  | 5,443 |  |  | 3,136 |  |  | 671 |  |  | 3,284 |  |  | 39 |  |  |  | 10,965 |  |  | NM |
Federal funds sold and securities purchased under agreements to resell | 520 |  |  | 445 |  |  | 593 |  |  | 415 |  |  | 592 |  |  | 75 |  |  | 17 |  |  |  | (72) |  |  | (12) |  |
Total interest earning assets | 81,004 |  |  | 77,284 |  |  | 76,186 |  |  | 43,608 |  |  | 41,669 |  |  | 3,720 |  |  | 5 |  |  |  | 39,334 |  |  | 94 |  |
Cash and due from banks | 1,169 |  |  | 1,203 |  |  | 1,075 |  |  | 604 |  |  | 538 |  |  | (34) |  |  | (3) |  |  |  | 632 |  |  | 118 |  |
Goodwill and other intangible assets, net | 1,850 |  |  | 1,864 |  |  | 1,876 |  |  | 1,552 |  |  | 1,558 |  |  | (14) |  |  | (1) |  |  |  | 292 |  |  | 19 |  |
Premises and equipment, net | 719 |  |  | 759 |  |  | 756 |  |  | 448 |  |  | 448 |  |  | (40) |  |  | (5) |  |  |  | 271 |  |  | 61 |  |
Allowance for loan and lease losses 7 | (914) |  |  | (963) |  |  | (988) |  |  | (538) |  |  | (444) |  |  | 49 |  |  | 5 |  |  |  | (470) |  |  | (106) |  |
Other assets | 3,685 |  |  | 4,063 |  |  | 4,125 |  |  | 2,970 |  |  | 3,429 |  |  | (378) |  |  | (9) |  |  |  | 256 |  |  | 7 |  |
Total assets | $ | 87,513 |  |  | $ | 84,209 |  |  | $ | 83,030 |  |  | $ | 48,645 |  |  | $ | 47,197 |  |  | $ | 3,304 |  |  | 4 | % |  |  | $ | 40,316 |  |  | 85 | % |
Liabilities and Shareholders' Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings | $ | 27,023 |  |  | $ | 27,324 |  |  | $ | 26,573 |  |  | $ | 13,532 |  |  | $ | 13,860 |  |  | $ | (301) |  |  | (1) | % |  |  | $ | 13,163 |  |  | 95 | % |
Time deposits | 4,653 |  |  | 5,070 |  |  | 5,526 |  |  | 2,656 |  |  | 3,058 |  |  | (418) |  |  | (8) |  |  |  | 1,595 |  |  | 52 |  |
Other interest-bearing deposits | 16,444 |  |  | 15,415 |  |  | 14,925 |  |  | 9,784 |  |  | 8,561 |  |  | 1,029 |  |  | 7 |  |  |  | 7,883 |  |  | 92 |  |
Total interest-bearing deposits | 48,120 |  |  | 47,810 |  |  | 47,025 |  |  | 25,972 |  |  | 25,480 |  |  | 311 |  |  | 1 |  |  |  | 22,640 |  |  | 89 |  |
Trading liabilities | 454 |  |  | 353 |  |  | 477 |  |  | 233 |  |  | 453 |  |  | 101 |  |  | 29 |  |  |  | 1 |  |  | — |  |
Short-term borrowings | 2,203 |  |  | 2,198 |  |  | 2,142 |  |  | 2,392 |  |  | 5,325 |  |  | 4 |  |  | — |  |  |  | (3,123) |  |  | (59) |  |
Term borrowings | 1,671 |  |  | 1,670 |  |  | 2,162 |  |  | 2,032 |  |  | 793 |  |  | 2 |  |  | — |  |  |  | 878 |  |  | 111 |  |
Total interest-bearing liabilities | 52,448 |  |  | 52,030 |  |  | 51,805 |  |  | 30,628 |  |  | 32,050 |  |  | 417 |  |  | 1 |  |  |  | 20,397 |  |  | 64 |  |
Noninterest-bearing deposits | 25,046 |  |  | 22,173 |  |  | 21,384 |  |  | 11,788 |  |  | 8,940 |  |  | 2,874 |  |  | 13 |  |  |  | 16,106 |  |  | NM |
Other liabilities | 1,712 |  |  | 1,699 |  |  | 1,696 |  |  | 1,020 |  |  | 1,152 |  |  | 12 |  |  | 1 |  |  |  | 560 |  |  | 49 |  |
Total liabilities | 79,206 |  |  | 75,903 |  |  | 74,885 |  |  | 43,436 |  |  | 42,142 |  |  | 3,303 |  |  | 4 |  |  |  | 37,064 |  |  | 88 |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock | 470 |  |  | 470 |  |  | 470 |  |  | 240 |  |  | 96 |  |  | — |  |  | — |  |  |  | 375 |  |  | NM |
Common stock | 345 |  |  | 347 |  |  | 347 |  |  | 195 |  |  | 195 |  |  | (2) |  |  | — |  |  |  | 150 |  |  | 77 |  |
Capital surplus | 5,036 |  |  | 5,073 |  |  | 5,061 |  |  | 2,941 |  |  | 2,939 |  |  | (37) |  |  | (1) |  |  |  | 2,098 |  |  | 71 |  |
Retained earnings 7 | 2,402 |  |  | 2,261 |  |  | 2,111 |  |  | 1,672 |  |  | 1,667 |  |  | 140 |  |  | 6 |  |  |  | 734 |  |  | 44 |  |
Accumulated other comprehensive loss, net | (242) |  |  | (140) |  |  | (140) |  |  | (135) |  |  | (136) |  |  | (102) |  |  | (73) |  |  |  | (106) |  |  | (78) |  |
Combined shareholders' equity | 8,012 |  |  | 8,012 |  |  | 7,849 |  |  | 4,913 |  |  | 4,760 |  |  | — |  |  | — |  |  |  | 3,251 |  |  | 68 |  |
Noncontrolling interest | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | — |  |  | — |  |  |  | — |  |  | — |  |
Total shareholders' equity | 8,307 |  |  | 8,307 |  |  | 8,144 |  |  | 5,208 |  |  | 5,056 |  |  | — |  |  | — |  |  |  | 3,251 |  |  | 64 |  |
Total liabilities and shareholders' equity | $ | 87,513 |  |  | $ | 84,209 |  |  | $ | 83,030 |  |  | $ | 48,645 |  |  | $ | 47,197 |  |  | $ | 3,304 |  |  | 4 | % |  |  | $ | 40,316 |  |  | 85 | % |
Memo: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Deposits | $ | 73,167 |  |  | $ | 69,982 |  |  | $ | 68,409 |  |  | $ | 37,759 |  |  | $ | 34,420 |  |  | $ | 3,184 |  |  | 5 | % |  |  | $ | 38,747 |  |  | 113 | % |

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.
12

CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 1Q21 change vs. |
(In millions) | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q20 |  | 1Q20 |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) | $ | 33,279 |  |  | $ | 34,196 |  |  | $ | 34,051 |  |  | $ | 22,694 |  |  | $ | 19,470 |  |  | $ | (917) |  |  | (3) | % |  | $ | 13,809 |  |  | 71 | % |
Commercial real estate | 12,424 |  |  | 12,400 |  |  | 12,414 |  |  | 4,710 |  |  | 4,422 |  |  | 24 |  |  | — |  |  | 8,002 |  |  | NM |
Total Commercial | 45,703 |  |  | 46,596 |  |  | 46,465 |  |  | 27,404 |  |  | 23,891 |  |  | (893) |  |  | (2) |  |  | 21,812 |  |  | 91 |  |
Consumer real estate | 11,400 |  |  | 12,030 |  |  | 12,444 |  |  | 6,087 |  |  | 6,134 |  |  | (630) |  |  | (5) |  |  | 5,266 |  |  | 86 |  |
Credit card and other 6 | 1,119 |  |  | 1,194 |  |  | 1,209 |  |  | 476 |  |  | 498 |  |  | (75) |  |  | (6) |  |  | 621 |  |  | 125 |  |
Total Consumer | 12,519 |  |  | 13,224 |  |  | 13,653 |  |  | 6,564 |  |  | 6,633 |  |  | (705) |  |  | (5) |  |  | 5,886 |  |  | 89 |  |
Loans and leases, net of unearned income | 58,222 |  |  | 59,820 |  |  | 60,118 |  |  | 33,968 |  |  | 30,524 |  |  | (1,598) |  |  | (3) |  |  | 27,698 |  |  | 91 |  |
Loans held-for-sale | 842 |  |  | 1,030 |  |  | 985 |  |  | 731 |  |  | 590 |  |  | (188) |  |  | (18) |  |  | 252 |  |  | 43 |  |
Investment securities | 8,320 |  |  | 8,213 |  |  | 8,590 |  |  | 4,541 |  |  | 4,467 |  |  | 107 |  |  | 1 |  |  | 3,853 |  |  | 86 |  |
Trading securities | 1,418 |  |  | 1,292 |  |  | 1,194 |  |  | 1,420 |  |  | 1,831 |  |  | 126 |  |  | 10 |  |  | (413) |  |  | (23) |  |
Interest-bearing deposits with banks | 9,269 |  |  | 6,201 |  |  | 3,616 |  |  | 1,620 |  |  | 548 |  |  | 3,068 |  |  | 49 |  |  | 8,721 |  |  | NM |
Federal funds sold and securities purchased under agreements to resell | 599 |  |  | 440 |  |  | 500 |  |  | 422 |  |  | 827 |  |  | 159 |  |  | 36 |  |  | (228) |  |  | (28) |  |
Total interest earning assets | 78,670 |  |  | 76,995 |  |  | 75,002 |  |  | 42,702 |  |  | 38,788 |  |  | 1,675 |  |  | 2 |  |  | 39,882 |  |  | 103 |  |
Cash and due from banks | 1,250 |  |  | 1,204 |  |  | 1,028 |  |  | 562 |  |  | 610 |  |  | 46 |  |  | 4 |  |  | 641 |  |  | 105 |  |
Goodwill and other intangibles assets, net | 1,857 |  |  | 1,871 |  |  | 1,794 |  |  | 1,555 |  |  | 1,560 |  |  | (14) |  |  | (1) |  |  | 297 |  |  | 19 |  |
Premises and equipment, net | 755 |  |  | 765 |  |  | 747 |  |  | 452 |  |  | 451 |  |  | (10) |  |  | (1) |  |  | 304 |  |  | 67 |  |
Allowances for loan and lease losses 7 | (949) |  |  | (985) |  |  | (980) |  |  | (476) |  |  | (354) |  |  | 36 |  |  | 4 |  |  | (595) |  |  | NM |
Other assets | 3,817 |  |  | 3,959 |  |  | 4,093 |  |  | 3,140 |  |  | 2,497 |  |  | (142) |  |  | (4) |  |  | 1,320 |  |  | 53 |  |
Total assets | $ | 85,401 |  |  | $ | 83,809 |  |  | $ | 81,683 |  |  | $ | 47,934 |  |  | $ | 43,552 |  |  | $ | 1,592 |  |  | 2 | % |  | $ | 41,849 |  |  | 96 | % |
Liabilities and shareholders' equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings | $ | 27,370 |  |  | $ | 27,090 |  |  | $ | 25,648 |  |  | $ | 14,118 |  |  | $ | 12,117 |  |  | $ | 280 |  |  | 1 | % |  | $ | 15,253 |  |  | 126 | % |
Time deposits | 4,836 |  |  | 5,386 |  |  | 5,783 |  |  | 2,836 |  |  | 3,357 |  |  | (550) |  |  | (10) |  |  | 1,480 |  |  | 44 |  |
Other interest-bearing deposits | 15,491 |  |  | 15,057 |  |  | 14,771 |  |  | 9,256 |  |  | 8,743 |  |  | 433 |  |  | 3 |  |  | 6,748 |  |  | 77 |  |
Total interest-bearing deposits | 47,697 |  |  | 47,534 |  |  | 46,202 |  |  | 26,211 |  |  | 24,216 |  |  | 163 |  |  | — |  |  | 23,481 |  |  | 97 |  |
Trading liabilities | 518 |  |  | 367 |  |  | 360 |  |  | 352 |  |  | 751 |  |  | 150 |  |  | 41 |  |  | (233) |  |  | (31) |  |
Short-term borrowings | 2,280 |  |  | 2,113 |  |  | 2,469 |  |  | 2,603 |  |  | 3,211 |  |  | 167 |  |  | 8 |  |  | (931) |  |  | (29) |  |
Term borrowings | 1,670 |  |  | 1,913 |  |  | 2,172 |  |  | 1,426 |  |  | 791 |  |  | (242) |  |  | (13) |  |  | 879 |  |  | 111 |  |
Total interest-bearing liabilities | 52,164 |  |  | 51,926 |  |  | 51,202 |  |  | 30,593 |  |  | 28,967 |  |  | 238 |  |  | — |  |  | 23,198 |  |  | 80 |  |
Noninterest-bearing deposits | 23,284 |  |  | 22,105 |  |  | 20,904 |  |  | 11,316 |  |  | 8,666 |  |  | 1,179 |  |  | 5 |  |  | 14,618 |  |  | NM |
Other liabilities | 1,603 |  |  | 1,568 |  |  | 1,505 |  |  | 908 |  |  | 915 |  |  | 35 |  |  | 2 |  |  | 688 |  |  | 75 |  |
Total liabilities | 77,052 |  |  | 75,600 |  |  | 73,611 |  |  | 42,816 |  |  | 38,550 |  |  | 1,452 |  |  | 2 |  |  | 38,502 |  |  | 100 |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock | 470 |  |  | 470 |  |  | 468 |  |  | 150 |  |  | 96 |  |  | — |  |  | — |  |  | 375 |  |  | NM |
Common stock | 346 |  |  | 347 |  |  | 345 |  |  | 195 |  |  | 195 |  |  | — |  |  | — |  |  | 152 |  |  | 78 |  |
Capital surplus | 5,061 |  |  | 5,902 |  |  | 5,041 |  |  | 2,941 |  |  | 2,935 |  |  | (841) |  |  | (14) |  |  | 2,126 |  |  | 72 |  |
Retained earnings 7 | 2,336 |  |  | 1,346 |  |  | 2,025 |  |  | 1,672 |  |  | 1,687 |  |  | 991 |  |  | 74 |  |  | 649 |  |  | 38 |  |
Accumulated other comprehensive loss, net | (161) |  |  | (151) |  |  | (103) |  |  | (135) |  |  | (206) |  |  | (10) |  |  | (7) |  |  | 45 |  |  | 22 |  |
Combined shareholders' equity | 8,054 |  |  | 7,914 |  |  | 7,777 |  |  | 4,822 |  |  | 4,707 |  |  | 140 |  |  | 2 |  |  | 3,347 |  |  | 71 |  |
Noncontrolling interest | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | — |  |  | — |  |  | — |  |  | — |  |
Total shareholders' equity | 8,349 |  |  | 8,209 |  |  | 8,072 |  |  | 5,118 |  |  | 5,002 |  |  | 140 |  |  | 2 |  |  | 3,347 |  |  | 67 |  |
Total liabilities and shareholders' equity | $ | 85,401 |  |  | $ | 83,809 |  |  | $ | 81,683 |  |  | $ | 47,934 |  |  | $ | 43,552 |  |  | $ | 1,592 |  |  | 2 | % |  | $ | 41,849 |  |  | 96 | % |
Memo: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Deposits | $ | 70,981 |  |  | $ | 69,639 |  |  | $ | 67,106 |  |  | $ | 37,526 |  |  | $ | 32,882 |  |  | $ | 1,342 |  |  | 2 | % |  | $ | 38,099 |  |  | 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.
13

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCE SHEET: YIELDS AND RATES |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1Q21 change vs. |
| 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q20 |  | 1Q20 |
(In millions, except rates) | Income/Expense |  | Rate |  | Income/Expense |  | Rate |  | Income/Expense |  | Rate |  | Income/Expense |  | Rate |  | Income/Expense |  | Rate |  | Income/Expense |  | Income/Expense |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | % |  | $ | % |
Interest earning assets/Interest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and leases, net of unearned income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 382 |  |  | 3.39 |  |  | $ | 406 |  |  | 3.46 |  |  | $ | 419 |  |  | 3.59 |  |  | $ | 243 |  |  | 3.56 |  |  | $ | 257 |  |  | 4.33 |  |  | $ | (23) |  | (6) | % |  | $ | 125 |  | 49 | % |
Consumer | 127 |  |  | 4.13 |  |  | 129 |  |  | 3.89 |  |  | 141 |  |  | 4.11 |  |  | 65 |  |  | 4.00 |  |  | 71 |  |  | 4.33 |  |  | (1) |  | (1) |  |  | 56 |  | 78 |  |
Loans and leases, net of unearned income | 510 |  |  | 3.55 |  |  | 535 |  |  | 3.56 |  |  | 560 |  |  | 3.70 |  |  | 308 |  |  | 3.65 |  |  | 329 |  |  | 4.33 |  |  | (25) |  | (5) |  |  | 181 |  | 55 |  |
Loans held-for-sale | 7 |  |  | 3.16 |  |  | 8 |  |  | 3.22 |  |  | 8 |  |  | 3.36 |  |  | 7 |  |  | 3.61 |  |  | 7 |  |  | 4.67 |  |  | (2) |  | (20) |  |  | — |  | (5) |  |
Investment securities | 28 |  |  | 1.41 |  |  | 27 |  |  | 1.29 |  |  | 25 |  |  | 1.21 |  |  | 25 |  |  | 2.23 |  |  | 28 |  |  | 2.51 |  |  | 1 |  | 3 |  |  | — |  | (1) |  |
Trading securities | 7 |  |  | 2.03 |  |  | 7 |  |  | 2.05 |  |  | 6 |  |  | 2.08 |  |  | 9 |  |  | 2.48 |  |  | 13 |  |  | 2.91 |  |  | 1 |  | 9 |  |  | (6) |  | (45) |  |
Interest-bearing deposits with banks | 2 |  |  | 0.10 |  |  | 2 |  |  | 0.10 |  |  | 1 |  |  | 0.09 |  |  | — |  |  | 0.09 |  |  | 2 |  |  | 1.13 |  |  | 1 |  | 42 |  |  | — |  | 11 |  |
Federal funds sold and securities purchased under agreements | — |  |  | (0.12) |  |  | — |  |  | 0.03 |  |  | — |  |  | 0.04 |  |  | — |  |  | (0.06) |  |  | 2 |  |  | 1.13 |  |  | — |  | NM |  | (2) |  | (110) |  |
Interest income | $ | 555 |  |  | 2.86 |  |  | $ | 578 |  |  | 2.99 |  |  | $ | 601 |  |  | 3.19 |  |  | $ | 349 |  |  | 3.29 |  |  | $ | 381 |  |  | 3.94 |  |  | $ | (23) |  | (4) | % |  | $ | 174 |  | 46 | % |
Interest bearing liabilities/Interest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings | $ | 13 |  |  | 0.19 |  |  | $ | 18 |  |  | 0.27 |  |  | $ | 25 |  |  | 0.38 |  |  | $ | 13 |  |  | 0.36 |  |  | $ | 26 |  |  | 0.87 |  |  | $ | (6) |  | (31) | % |  | $ | (13) |  | (52) | % |
Time deposits | 6 |  |  | 0.47 |  |  | 6 |  |  | 0.44 |  |  | 10 |  |  | 0.70 |  |  | 9 |  |  | 1.31 |  |  | 14 |  |  | 1.67 |  |  | — |  | (5) |  |  | (8) |  | (60) |  |
Other interest-bearing deposits | 6 |  |  | 0.16 |  |  | 7 |  |  | 0.18 |  |  | 7 |  |  | 0.20 |  |  | 3 |  |  | 0.13 |  |  | 14 |  |  | 0.65 |  |  | (1) |  | (13) |  |  | (8) |  | (57) |  |
Total interest-bearing deposits | 24 |  |  | 0.20 |  |  | 31 |  |  | 0.26 |  |  | 42 |  |  | 0.36 |  |  | 25 |  |  | 0.38 |  |  | 54 |  |  | 0.90 |  |  | (7) |  | (22) |  |  | (30) |  | (55) |  |
Trading liabilities | 1 |  |  | 0.73 |  |  | 1 |  |  | 0.78 |  |  | 1 |  |  | 0.77 |  |  | 1 |  |  | 1.11 |  |  | 3 |  |  | 1.76 |  |  | — |  | 31 |  |  | (2) |  | (72) |  |
Short-term borrowings | 1 |  |  | 0.21 |  |  | 1 |  |  | 0.23 |  |  | 1 |  |  | 0.20 |  |  | 1 |  |  | 0.22 |  |  | 10 |  |  | 1.24 |  |  | — |  | (2) |  |  | (9) |  | (88) |  |
Term borrowings | 18 |  |  | 4.39 |  |  | 20 |  |  | 4.16 |  |  | 22 |  |  | 3.98 |  |  | 14 |  |  | 3.96 |  |  | 8 |  |  | 4.01 |  |  | (2) |  | (8) |  |  | 10 |  | 129 |  |
Interest expense | 45 |  |  | 0.34 |  |  | 53 |  |  | 0.40 |  |  | 66 |  |  | 0.51 |  |  | 41 |  |  | 0.54 |  |  | 76 |  |  | 1.05 |  |  | (8) |  | (15) |  |  | (31) |  | (41) |  |
Net interest income - tax equivalent basis | 511 |  |  | 2.52 |  |  | 525 |  |  | 2.59 |  |  | 535 |  |  | 2.68 |  |  | 308 |  |  | 2.75 |  |  | 305 |  |  | 2.89 |  |  | (14) |  | (3) |  |  | 206 |  | 68 |  |
Fully taxable equivalent adjustment | (3) |  |  | 0.11 |  |  | (3) |  |  | 0.12 |  |  | (3) |  |  | 0.16 |  |  | (3) |  |  | 0.15 |  |  | (2) |  |  | 0.27 |  |  | — |  | 7 |  |  | (1) |  | (48) |  |
Net interest income | $ | 508 |  |  | 2.63 |  |  | $ | 522 |  |  | 2.71 |  |  | $ | 532 |  |  | 2.84 |  |  | $ | 305 |  |  | 2.90 |  |  | $ | 303 |  |  | 3.16 |  |  | $ | (14) |  | (3) | % |  | $ | 205 |  | 68 | % |
Memo: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total loan yield |  |  | 3.55 | % |  |  |  | 3.56 | % |  |  |  | 3.70 | % |  |  |  | 3.65 | % |  |  |  | 4.33 | % |  |  |  |  |  |  |
Total deposit cost |  |  | 0.14 | % |  |  |  | 0.18 | % |  |  |  | 0.25 | % |  |  |  | 0.27 | % |  |  |  | 0.67 | % |  |  |  |  |  |  |
Total funding cost |  |  | 0.24 | % |  |  |  | 0.28 | % |  |  |  | 0.36 | % |  |  |  | 0.40 | % |  |  |  | 0.81 | % |  |  |  |  |  |  |

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 |  | 1Q21 change vs. |
(In millions, except ratio data) |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q20 |  | 1Q20 |
|  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Nonperforming loans and leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | 144 |  |  | $ | 144 |  |  | $ | 213 |  |  | $ | 127 |  |  | $ | 96 |  |  | $ | — |  |  | — | % |  | $ | 48 |  |  | 50 | % |
Commercial real estate |  | 67 |  |  | 58 |  |  | 51 |  |  | 2 |  |  | 2 |  |  | 9 |  |  | 15 |  |  | 65 |  |  | NM |
Consumer real estate |  | 180 |  |  | 182 |  |  | 180 |  |  | 96 |  |  | 91 |  |  | (2) |  |  | (1) |  |  | 89 |  |  | 97 |  |
Credit card and other |  | 2 |  |  | 2 |  |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 22 |  |  | 2 |  |  | NM |
Total nonperforming loans and leases |  | $ | 394 |  |  | $ | 386 |  |  | $ | 447 |  |  | $ | 226 |  |  | $ | 190 |  |  | $ | 7 |  |  | 2 | % |  | $ | 204 |  |  | 107 | % |
Asset Quality Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonperforming loans and leases to loans and leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 0.42 | % |  | 0.43 | % |  | 0.63 | % |  | 0.60 | % |  | 0.43 | % |  |  |  |  |  |  |  |  |
Commercial real estate |  | 0.54 |  |  | 0.48 |  |  | 0.41 |  |  | 0.04 |  |  | 0.05 |  |  |  |  |  |  |  |  |  |
Consumer real estate |  | 1.63 |  |  | 1.56 |  |  | 1.46 |  |  | 1.59 |  |  | 1.49 |  |  |  |  |  |  |  |  |  |
Credit card and other |  | 0.22 |  |  | 0.18 |  |  | 0.24 |  |  | 0.06 |  |  | 0.07 |  |  |  |  |  |  |  |  |  |
Total nonperforming loans and leases to loans and leases |  | 0.67 | % |  | 0.66 | % |  | 0.75 | % |  | 0.69 | % |  | 0.57 | % |  |  |  |  |  |  |  |  |

Numbers may not foot due to rounding.

CONSOLIDATED LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of |  | 1Q21 change vs. |
(In millions) |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q20 |  | 1Q20 |
|  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Loans and leases 90 days or more past due and accruing |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | (62) | % |  | $ | — |  |  | (40) | % |
Commercial real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Consumer real estate |  | 12 |  |  | 15 |  |  | 14 |  |  | 13 |  |  | 12 |  |  | (3) |  |  | (19) |  |  | — |  |  | 3 |  |
Credit card and other |  | — |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 2 |  |  | — |  |  | (37) |  |  | (1) |  |  | (76) |  |
Total loans and leases 90 days or more past due and accruing |  | $ | 13 |  |  | $ | 16 |  |  | $ | 15 |  |  | $ | 14 |  |  | $ | 14 |  |  | $ | (3) |  |  | (20) | % |  | $ | (1) |  |  | (8) | % |

Numbers may not foot due to rounding.
15

CONSOLIDATED NET CHARGE-OFFS
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of |  | 1Q21 change vs. |
(In millions, except ratio data) |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q20 |  | 1Q20 |
Charge-off, Recoveries and Related Ratios |  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Gross Charge-offs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | 15 |  |  | $ | 35 |  |  | $ | 69 |  |  | $ | 18 |  |  | $ | 7 |  |  | $ | (20) |  |  | (56) | % |  | $ | 9 |  |  | 128 | % |
Commercial real estate |  | 3 |  |  | — |  |  | 4 |  |  | — |  |  | 1 |  |  | 3 |  |  | NM |  | 3 |  |  | NM |
Consumer real estate |  | 1 |  |  | 1 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | — |  |  | (6) |  |  | (1) |  |  | (39) |  |
Credit card and other |  | 3 |  |  | 4 |  |  | 4 |  |  | 3 |  |  | 4 |  |  | (1) |  |  | (16) |  |  | (1) |  |  | (23) |  |
Total gross charge-offs |  | $ | 23 |  |  | $ | 40 |  |  | $ | 78 |  |  | $ | 23 |  |  | $ | 13 |  |  | $ | (17) |  |  | (43) | % |  | $ | 10 |  |  | 71 | % |
Gross Recoveries |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | (6) |  |  | $ | (4) |  |  | $ | (3) |  |  | $ | (1) |  |  | $ | (1) |  |  | $ | (2) |  |  | (47) | % |  | $ | (5) |  |  | NM |
Commercial real estate |  | (2) |  |  | (1) |  |  | (2) |  |  | — |  |  | (1) |  |  | — |  |  | (43) |  |  | (1) |  |  | NM |
Consumer real estate |  | (6) |  |  | (5) |  |  | (5) |  |  | (4) |  |  | (4) |  |  | (1) |  |  | (25) |  |  | (3) |  |  | (80) |  |
Credit card and other |  | (1) |  |  | (1) |  |  | (1) |  |  | (1) |  |  | (1) |  |  | — |  |  | 22 |  |  | — |  |  | 2 |  |
Total gross recoveries |  | $ | (15) |  |  | $ | (12) |  |  | $ | (12) |  |  | $ | (6) |  |  | $ | (6) |  |  | $ | (3) |  |  | (28) | % |  | $ | (9) |  |  | (139) | % |
Net Charge-offs (Recoveries) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | 10 |  |  | $ | 31 |  |  | $ | 66 |  |  | $ | 17 |  |  | $ | 6 |  |  | $ | (22) |  |  | (69) | % |  | $ | 4 |  |  | 63 | % |
Commercial real estate |  | 2 |  |  | (1) |  |  | 1 |  |  | — |  |  | — |  |  | 2 |  |  | NM |  | 2 |  |  | NM |
Consumer real estate |  | (5) |  |  | (4) |  |  | (3) |  |  | (2) |  |  | (1) |  |  | (1) |  |  | (38) |  |  | (4) |  |  | NM |
Credit card and other |  | 2 |  |  | 2 |  |  | 3 |  |  | 2 |  |  | 3 |  |  | — |  |  | (13) |  |  | (1) |  |  | (32) |  |
Total net charge-offs |  | $ | 8 |  |  | $ | 29 |  |  | $ | 67 |  |  | $ | 17 |  |  | $ | 7 |  |  | $ | (21) |  |  | (72) | % |  | $ | 1 |  |  | 11 | % |
Annualized Net Charge-off (Recovery) Rates |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 0.12 | % |  | 0.36 | % |  | 0.77 | % |  | 0.30 | % |  | 0.12 | % |  |  |  |  |  |  |  |  |
Commercial real estate |  | 0.06 |  |  | (0.02) |  |  | 0.04 |  |  | (0.01) |  |  | — |  |  |  |  |  |  |  |  |  |
Consumer real estate |  | (0.18) |  |  | (0.12) |  |  | (0.11) |  |  | (0.13) |  |  | (0.08) |  |  |  |  |  |  |  |  |  |
Credit card and other |  | 0.65 |  |  | 0.68 |  |  | 0.83 |  |  | 1.35 |  |  | 2.12 |  |  |  |  |  |  |  |  |  |
Total loans and leases |  | 0.06 | % |  | 0.19 | % |  | 0.44 | % |  | 0.20 | % |  | 0.10 | % |  |  |  |  |  |  |  |  |

Numbers may not foot due to rounding.
16

CONSOLIDATED ALLOWANCE FOR LOAN AND LEASE LOSSES AND RESERVE FOR UNFUNDED COMMITMENTS |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of |  | 1Q21 Change vs. |
(In millions) |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q20 |  | 1Q20 |
Summary of Changes in the Components of the Allowance For Credit Losses |  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Allowance for loan and lease losses - beginning |  | $ | 963 |  |  | $ | 988 |  |  | $ | 538 |  |  | $ | 444 |  |  | $ | 200 |  |  | $ | (25) |  |  | (3) | % |  | $ | 763 |  |  | NM |
Cumulative effect of change in accounting principle: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | — |  |  | — |  |  | — |  |  | — |  |  | 19 |  |  | — |  |  | NM |  | (19) |  |  | (100) |  |
Commercial real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | (7) |  |  | — |  |  | NM |  | 7 |  |  | 100 |  |
Consumer real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | 93 |  |  | — |  |  | NM |  | (93) |  |  | (100) |  |
Credit card and other |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | NM |  | (2) |  |  | (100) |  |
Total cumulative effect of change in accounting principles |  | — |  |  | — |  |  | — |  |  | — |  |  | 106 |  |  | — |  |  | NM |  | (106) |  |  | (100) |  |
Allowance for loan and lease losses - beginning, adjusted |  | $ | 963 |  |  | $ | 988 |  |  | $ | 538 |  |  | $ | 444 |  |  | $ | 307 |  |  | $ | (25) |  |  | (3) | % |  | $ | 657 |  |  | NM |
Acquired purchased credit deteriorated allowance for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | — |  |  | — |  |  | 138 |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Commercial real estate |  | — |  |  | — |  |  | 100 |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Consumer real estate |  | — |  |  | — |  |  | 44 |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Credit card and other |  | — |  |  | — |  |  | 5 |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Total acquired purchased credit deteriorated allowance for loan and lease losses |  | — |  |  | — |  |  | 287 |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | (15) |  |  | (35) |  |  | (69) |  |  | (18) |  |  | (7) |  |  | 20 |  |  | 56 |  |  | (9) |  |  | (128) |  |
Commercial real estate |  | (3) |  |  | — |  |  | (4) |  |  | — |  |  | (1) |  |  | (3) |  |  | NM |  | (3) |  |  | NM |
Consumer real estate |  | (1) |  |  | (1) |  |  | (2) |  |  | (2) |  |  | (2) |  |  | — |  |  | 6 |  |  | 1 |  |  | 39 |  |
Credit card and other |  | (3) |  |  | (4) |  |  | (4) |  |  | (3) |  |  | (4) |  |  | 1 |  |  | 16 |  |  | 1 |  |  | 23 |  |
Total charge-offs |  | (23) |  |  | (40) |  |  | (78) |  |  | (23) |  |  | (13) |  |  | 17 |  |  | 43 |  |  | (10) |  |  | (71) |  |
Recoveries: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 6 |  |  | 4 |  |  | 3 |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 47 |  |  | 5 |  |  | NM |
Commercial real estate |  | 2 |  |  | 1 |  |  | 2 |  |  | — |  |  | 1 |  |  | — |  |  | 43 |  |  | 1 |  |  | NM |
Consumer real estate |  | 6 |  |  | 5 |  |  | 5 |  |  | 4 |  |  | 4 |  |  | 1 |  |  | 25 |  |  | 3 |  |  | 80 |  |
Credit card and other |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | — |  |  | (22) |  |  | — |  |  | (2) |  |
Total Recoveries |  | 15 |  |  | 12 |  |  | 12 |  |  | 6 |  |  | 6 |  |  | 3 |  |  | 28 |  |  | 9 |  |  | 139 |  |
Provision for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I)* |  | (1) |  |  | (5) |  |  | 99 |  |  | 81 |  |  | 119 |  |  | 4 |  |  | 81 |  |  | (120) |  |  | (101) |  |
Commercial real estate* |  | (8) |  |  | 34 |  |  | 52 |  |  | 10 |  |  | 19 |  |  | (42) |  |  | (124) |  |  | (27) |  |  | (143) |  |
Consumer real estate* |  | (26) |  |  | (27) |  |  | 74 |  |  | 19 |  |  | — |  |  | 1 |  |  | 5 |  |  | (26) |  |  | NM |
Credit card and other* |  | (6) |  |  | 3 |  |  | 5 |  |  | — |  |  | 7 |  |  | (9) |  |  | NM |  | (13) |  |  | NM |
Total provision for loan and lease losses*: |  | (41) |  |  | 4 |  |  | 230 |  |  | 110 |  |  | 145 |  |  | (45) |  |  | NM |  | (186) |  |  | (128) |  |
Allowance for loan and lease losses - ending |  | $ | 914 |  |  | $ | 963 |  |  | $ | 988 |  |  | $ | 538 |  |  | $ | 444 |  |  | $ | (49) |  |  | (5) | % |  | $ | 470 |  |  | 106 | % |
Reserve for unfunded commitments - beginning |  | $ | 85 |  |  | $ | 89 |  |  | $ | 50 |  |  | $ | 39 |  |  | $ | 6 |  |  | $ | (4) |  |  | (5) | % |  | $ | 78 |  |  | NM |
Cumulative effect of change in accounting principle |  | — |  |  | — |  |  | — |  |  | — |  |  | 24 |  |  | — |  |  | NM |  | (24) |  |  | (100) |  |
Acquired reserve for unfunded commitments |  | — |  |  | (1) |  |  | 41 |  |  | — |  |  | — |  |  | 1 |  |  | 100 |  |  | — |  |  | NM |
Provision for unfunded commitments |  | (4) |  |  | (3) |  |  | (3) |  |  | 11 |  |  | 9 |  |  | (1) |  |  | (33) |  |  | (13) |  |  | (143) |  |
Reserve for unfunded commitments - ending |  | $ | 81 |  |  | $ | 85 |  |  | $ | 89 |  |  | $ | 50 |  |  | $ | 39 |  |  | $ | (4) |  |  | (5) |  |  | $ | 41 |  |  | 105 |  |
Total allowance for credit losses- ending |  | $ | 995 |  |  | $ | 1,048 |  |  | $ | 1,077 |  |  | $ | 588 |  |  | $ | 484 |  |  | $ | (53) |  |  | (5) | % |  | $ | 511 |  |  | 106 | % |

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 |
|  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |
Allowance for loans and lease losses to loans and leases |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 1.30 | % |  | 1.37 | % |  | 1.45 | % |  | 1.49 | % |  | 1.15 | % |
Commercial real estate |  | 1.86 | % |  | 1.97 | % |  | 1.66 | % |  | 1.19 | % |  | 1.03 | % |
Consumer real estate |  | 2.00 | % |  | 2.07 | % |  | 2.15 | % |  | 2.38 | % |  | 2.01 | % |
Credit card and other |  | 1.63 | % |  | 2.34 | % |  | 2.11 | % |  | 4.03 | % |  | 3.91 | % |
Total allowance for loans and lease losses to loans and leases |  | 1.56 | % |  | 1.65 | % |  | 1.65 | % |  | 1.64 | % |  | 1.33 | % |
Allowance for loans and lease losses to nonperforming loans and leases |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 307 | % |  | 315 | % |  | 230 | % |  | 250 | % |  | 265 | % |
Commercial real estate |  | 345 | % |  | 415 | % |  | 407 | % |  | 2,771 | % |  | 2,175 | % |
Consumer real estate |  | 123 | % |  | 133 | % |  | 147 | % |  | 149 | % |  | 135 | % |
Credit card and other |  | 749 | % |  | 1,313 | % |  | 890 | % |  | 7,114 | % |  | 5,368 | % |
Total allowance for loans and lease losses to nonperforming loans and leases |  | 232 | % |  | 249 | % |  | 221 | % |  | 238 | % |  | 234 | % |

18

REGIONAL BANKING
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 1Q21 Change vs. |
| 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q20 |  | 1Q20 |
|  |  |  |  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |
Income Statement (millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 426 |  |  | $ | 430 |  |  | $ | 448 |  |  | $ | 211 |  |  | $ | 194 |  |  | $ | (4) |  |  | (1) | % |  | $ | 232 |  |  | 120 | % |
Noninterest income | 99 |  |  | 105 |  |  | 97 |  |  | 69 |  |  | 73 |  |  | (6) |  |  | (6) |  |  | 26 |  |  | 36 | % |
Total revenue | 526 |  |  | 535 |  |  | 545 |  |  | 280 |  |  | 267 |  |  | (9) |  |  | (2) |  |  | 259 |  |  | 97 | % |
Noninterest expense | 272 |  |  | 306 |  |  | 301 |  |  | 164 |  |  | 174 |  |  | (34) |  |  | (11) |  |  | 98 |  |  | 56 | % |
Pre-provision net revenue 3 | 254 |  |  | 229 |  |  | 244 |  |  | 116 |  |  | 93 |  |  | 25 |  |  | 11 |  |  | 161 |  |  | NM |
Provision for credit losses 4 | (32) |  |  | (2) |  |  | 194 |  |  | 102 |  |  | 98 |  |  | (30) |  |  | NM |  | (130) |  |  | (133) | % |
Income before income tax expense | 286 |  |  | 231 |  |  | 49 |  |  | 13 |  |  | (4) |  |  | 55 |  |  | 24 |  |  | 290 |  |  | NM |
Income tax expense | 66 |  |  | 53 |  |  | 9 |  |  | 1 |  |  | (3) |  |  | 13 |  |  | 25 |  |  | 69 |  |  | NM |
Net income | $ | 220 |  |  | $ | 178 |  |  | $ | 41 |  |  | $ | 12 |  |  | $ | (1) |  |  | $ | 42 |  |  | 24 | % |  | $ | 221 |  |  | NM |
Average Balances (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total loans and leases | $ | 40.1 |  |  | $ | 40.6 |  |  | $ | 41.6 |  |  | $ | 19.1 |  |  | $ | 17.2 |  |  | $ | (0.5) |  |  | (1) | % |  | $ | 22.9 |  |  | 133 | % |
Interest-earning assets | 40.1 |  |  | 40.6 |  |  | 41.5 |  |  | 19.1 |  |  | 17.2 |  |  | (0.5) |  |  | (1) |  |  | 22.9 |  |  | 133 |  |
Total assets | 42.4 |  |  | 43.0 |  |  | 43.7 |  |  | 21.0 |  |  | 19.0 |  |  | (0.6) |  |  | (1) |  |  | 23.4 |  |  | 123 |  |
Total deposits | 62.0 |  |  | 60.7 |  |  | 59.3 |  |  | 30.2 |  |  | 27.2 |  |  | 1.3 |  |  | 2 |  |  | 34.8 |  |  | 128 |  |
Key Metrics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest margin 8 | 4.34 | % |  | 4.24 | % |  | 4.32 | % |  | 4.50 | % |  | 4.58 | % |  | 10 | bp |  |  |  | (24) | bp |  |  |
Efficiency ratio | 51.66 | % |  | 57.26 | % |  | 55.24 | % |  | 58.61 | % |  | 65.12 | % |  | (560) | bp |  |  |  | (1,346) | bp |  |  |
Loans-to-deposits ratio (period-end balances) | 62.53 | % |  | 65.37 | % |  | 68.14 | % |  | 62.34 | % |  | 64.37 | % |  | (284) | bp |  |  |  | (184) | bp |  |  |
Loans-to-deposits ratio (average-end balances) | 64.60 | % |  | 66.91 | % |  | 70.13 | % |  | 63.11 | % |  | 63.21 | % |  | (231) | bp |  |  |  | 139 | bp |  |  |
Return on average assets (annualized) | 2.10 | % |  | 1.65 | % |  | 0.37 | % |  | 0.24 | % |  | (0.03) | % |  | 45 | bp |  |  |  | 213 | bp |  |  |
Return on allocated equity 9 | 24.05 | % |  | 17.97 | % |  | 4.31 | % |  | 2.58 | % |  | (0.29) | % |  | 608 | bp |  |  |  | 2,434 | bp |  |  |
Financial center locations | 490 |  |  | 492 |  |  | 493 |  |  | 269 |  |  | 269 |  |  | (2) |  |  | — | % |  | 221 |  |  | 82 | % |

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, Unaudited

|  |  |  |  |  |  |  |  |  |  | 1Q21 Change vs. |
| 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q20 |  | 1Q20 |
|  |  |  |  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |
Income Statement (millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 159 |  |  | $ | 173 |  |  | $ | 161 |  |  | $ | 130 |  |  | $ | 109 |  |  | $ | (14) |  |  | (8) | % |  | $ | 50 |  |  | 46 | % |
Noninterest income | 185 |  |  | 167 |  |  | 181 |  |  | 124 |  |  | 105 |  |  | 18 |  |  | 11 |  |  | 80 |  |  | 76 |  |
Total revenue | 344 |  |  | 340 |  |  | 342 |  |  | 254 |  |  | 213 |  |  | 4 |  |  | 1 |  |  | 131 |  |  | 62 |  |
Noninterest expense | 154 |  |  | 135 |  |  | 137 |  |  | 111 |  |  | 110 |  |  | 19 |  |  | 14 |  |  | 44 |  |  | 40 |  |
Pre-provision net revenue 3 | 190 |  |  | 205 |  |  | 205 |  |  | 143 |  |  | 103 |  |  | (15) |  |  | (7) |  |  | 87 |  |  | 84 |  |
Provision for credit losses 4 | (7) |  |  | 11 |  |  | 34 |  |  | 18 |  |  | 54 |  |  | (18) |  |  | NM |  | (61) |  |  | (113) |  |
Income before income tax expense | 196 |  |  | 194 |  |  | 171 |  |  | 125 |  |  | 49 |  |  | 2 |  |  | 1 |  |  | 147 |  |  | NM |
Income tax expense | 47 |  |  | 47 |  |  | 42 |  |  | 31 |  |  | 12 |  |  | — |  |  | — |  |  | 35 |  |  | NM |
Net income | $ | 149 |  |  | $ | 147 |  |  | $ | 129 |  |  | $ | 94 |  |  | $ | 37 |  |  | $ | 2 |  |  | 1 | % |  | $ | 112 |  |  | NM |
Average Balances (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total loans and leases | $ | 17.2 |  |  | $ | 18.2 |  |  | $ | 17.6 |  |  | $ | 14.0 |  |  | $ | 12.4 |  |  | $ | (1.0) |  |  | (6) | % |  | $ | 4.8 |  |  | 39 | % |
Interest-earning assets | 20.2 |  |  | 21.1 |  |  | 20.3 |  |  | 16.7 |  |  | 15.7 |  |  | (0.9) |  |  | (4) |  |  | 4.4 |  |  | 28 |  |
Total assets | 21.5 |  |  | 22.5 |  |  | 21.7 |  |  | 18.0 |  |  | 16.9 |  |  | (1.0) |  |  | (4) |  |  | 4.6 |  |  | 27 |  |
Total deposits | 5.4 |  |  | 4.9 |  |  | 4.5 |  |  | 3.6 |  |  | 3.4 |  |  | 0.4 |  |  | 9 |  |  | 2.0 |  |  | 59 |  |
Key Metrics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income product average daily revenue (thousands) | $ | 1,885 |  |  | $ | 1,505 |  |  | $ | 1,545 |  |  | $ | 1,592 |  |  | $ | 1,264 |  |  | $ | 380 |  |  | 25 | % |  | $ | 621 |  |  | 49 | % |
Net interest margin 8 | 3.19 | % |  | 3.26 | % |  | 3.16 | % |  | 3.14 | % |  | 2.78 | % |  | (7) | bp |  |  |  | 41 | bp |  |  |
Efficiency ratio | 44.86 | % |  | 39.71 | % |  | 40.17 | % |  | 43.81 | % |  | 51.52 | % |  | 515 | bp |  |  |  | (666) | bp |  |  |
Loans-to-deposits ratio (period-end balances) | 314 | % |  | 365 | % |  | 399 | % |  | 375 | % |  | 468 | % |  | (5,086) | bp |  |  |  | (15,415) | bp |  |  |
Loans-to-deposits ratio (average-end balances) | 320 | % |  | 370 | % |  | 393 | % |  | 393 | % |  | 368 | % |  | (4,944) | bp |  |  |  | (4,752) | bp |  |  |
Return on average assets (annualized) | 2.81 | % |  | 2.60 | % |  | 2.37 | % |  | 2.10 | % |  | 0.88 | % |  | 21 | bp |  |  |  | 193 | bp |  |  |
Return on allocated equity 9 | 33.73 | % |  | 32.33 | % |  | 29.80 | % |  | 27.27 | % |  | 11.09 | % |  | 140 | bp |  |  |  | 2,264 | 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, Unaudited

|  | 1Q21 Change vs. |
| 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  | 4Q20 |  | 1Q20 |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Income Statement (millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income/(expense) | $ | (77) |  |  | $ | (81) |  |  | $ | (77) |  |  | $ | (36) |  |  | $ | — |  |  | $ | 4 |  |  | 5 | % |  | $ | (77) |  |  | NM |
Noninterest income 2 | 13 |  |  | 17 |  |  | 545 |  |  | 14 |  |  | (3) |  |  | (4) |  |  | (24) |  |  | 16 |  |  | NM |
Total revenues | (64) |  |  | (64) |  |  | 468 |  |  | (23) |  |  | (3) |  |  | — |  |  | — |  |  | (61) |  |  | NM |
Noninterest expense | 118 |  |  | 67 |  |  | 148 |  |  | 46 |  |  | 18 |  |  | 51 |  |  | 76 |  |  | 100 |  |  | NM |
Pre-provision net revenue 3 | (182) |  |  | (131) |  |  | 319 |  |  | (68) |  |  | (21) |  |  | (51) |  |  | (39) |  |  | (161) |  |  | NM |
Provision for credit losses 4 | (6) |  |  | (7) |  |  | (1) |  |  | 1 |  |  | 2 |  |  | 1 |  |  | 14 |  |  | (8) |  |  | NM |
Income before income tax expense | (176) |  |  | (124) |  |  | 321 |  |  | (69) |  |  | (23) |  |  | (52) |  |  | (42) |  |  | (153) |  |  | NM |
Income tax expense (benefit) | (43) |  |  | (44) |  |  | (48) |  |  | (19) |  |  | (4) |  |  | 1 |  |  | 2 |  |  | (39) |  |  | NM |
Net income/(loss) | $ | (133) |  |  | $ | (80) |  |  | $ | 369 |  |  | $ | (50) |  |  | $ | (19) |  |  | $ | (53) |  |  | (66) | % |  | $ | (114) |  |  | NM |
Average Balance Sheet (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing assets | $ | 18.4 |  |  | $ | 15.3 |  |  | $ | 13.2 |  |  | $ | 6.9 |  |  | $ | 5.9 |  |  | $ | 3.2 |  |  | 21 | % |  | $ | 12.6 |  |  | NM |
Total assets | 21.5 |  |  | 18.3 |  |  | 16.3 |  |  | 8.9 |  |  | 7.6 |  |  | 3.2 |  |  | 17 |  |  | 13.9 |  |  | NM |

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.
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 Taxable equivalent interest income and interest expense are non-GAAP measures and reconcile to net interest income (GAAP) in the table.
2 3Q20 includes a $532 million purchase accounting gain from FHN's merger with IBERIABANK.
3 Pre-provision net revenue is a non-GAAP measure and is reconciled to income before income taxes (GAAP) in the table.
4 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.
5 Represents a non-GAAP measure and is reconciled to the nearest GAAP measure in the non-GAAP to GAAP reconciliations beginning on page 22.
6 Credit card and other includes an insignificant amount of commercial credit card balances.
7 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.
8 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.
9 Segment equity is allocated based on an internal allocation methodology.
21

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |
($s in millions, except per share data) | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  |  |  |  |
Tangible Common Equity (Non-GAAP) |  |  |  |  |  |  |  |  |  |  |  |  |  |
(A) Total equity (GAAP) | $ | 8,307 |  |  | $ | 8,307 |  |  | $ | 8,144 |  |  | $ | 5,208 |  |  | $ | 5,056 |  |  |  |  |  |
Less: Noncontrolling interest (a) | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  |  |  |  |
Less: Preferred stock (a) | 470 |  |  | 470 |  |  | 470 |  |  | 240 |  |  | 96 |  |  |  |  |  |
(B) Total common equity | $ | 7,541 |  |  | $ | 7,541 |  |  | $ | 7,378 |  |  | $ | 4,673 |  |  | $ | 4,665 |  |  |  |  |  |
Less: Intangible assets (GAAP) (b) | 1,850 |  |  | 1,864 |  |  | 1,876 |  |  | 1,552 |  |  | 1,558 |  |  |  |  |  |
(C) Tangible common equity (Non-GAAP) | $ | 5,691 |  |  | $ | 5,677 |  |  | $ | 5,502 |  |  | $ | 3,120 |  |  | $ | 3,107 |  |  |  |  |  |
Tangible Assets (Non-GAAP) |  |  |  |  |  |  |  |  |  |  |  |  |  |
(D) Total assets (GAAP) | $ | 87,513 |  |  | $ | 84,209 |  |  | $ | 83,030 |  |  | $ | 48,645 |  |  | $ | 47,197 |  |  |  |  |  |
Less: Intangible assets (GAAP) (b) | 1,850 |  |  | 1,864 |  |  | 1,876 |  |  | 1,552 |  |  | 1,558 |  |  |  |  |  |
(E) Tangible assets (Non-GAAP) | $ | 85,663 |  |  | $ | 82,345 |  |  | $ | 81,154 |  |  | $ | 47,092 |  |  | $ | 45,640 |  |  |  |  |  |
Period-end Shares Outstanding |  |  |  |  |  |  |  |  |  |  |  |  |  |
(F) Period-end shares outstanding | 552 |  |  | 555 |  |  | 555 |  |  | 312 |  |  | 312 |  |  |  |  |  |
Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |
(A)/(D) Total equity to total assets (GAAP) | 9.49 | % |  | 9.86 | % |  | 9.81 | % |  | 10.71 | % |  | 10.71 | % |  |  |  |  |
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP) | 6.64 | % |  | 6.89 | % |  | 6.78 | % |  | 6.63 | % |  | 6.81 | % |  |  |  |  |
(B)/(F) Book value per common share (GAAP) | $ | 13.65 |  |  | $ | 13.59 |  |  | $ | 13.30 |  |  | $ | 14.96 |  |  | $ | 14.96 |  |  |  |  |  |
(C)/(F) Tangible book value per common share (Non-GAAP) | $ | 10.30 |  |  | $ | 10.23 |  |  | $ | 9.92 |  |  | $ | 9.99 |  |  | $ | 9.96 |  |  |  |  |  |

(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
|  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |
($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 - FTE |  | $ | 552 |  | $ | 3 |  | $ | 555 |  |  | $ | 574 |  | $ | 3 |  | $ | 578 |  |  | $ | 598 |  | $ | 3 |  | $ | 601 |  |  | $ | 347 |  | $ | 3 |  | $ | 349 |  |  | $ | 378 |  | $ | 2 |  | $ | 381 |  |
Interest expense- FTE |  | 45 | — |  | 45 |  | 53 | — |  | 53 |  |  | 66 | — |  | 66 |  |  | 41 | — |  | 41 |  |  | 76 | — |  | 76 |  |
Net interest income- FTE |  | 508 | 3 |  | 511 |  | 522 | 3 |  | 525 |  |  | 532 | 3 |  | 535 |  |  | 305 | 3 |  | 308 |  |  | 303 | 2 |  | 305 |  |
Less: Taxable-equivalent adjustment |  | — |  | 3 |  | 3 |  |  | — |  | 3 |  | 3 |  |  | — |  | 3 |  | 3 |  |  | — |  | 3 |  | 3 |  |  | — |  | 2 |  | 2 |  |
Net interest income |  | 508 |  | — |  | 508 |  |  | 522 |  | — |  | 522 |  |  | 532 |  | — |  | 532 |  |  | 305 |  | — |  | 305 |  |  | 303 |  | — |  | 303 |  |
Noninterest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income |  | 126 |  | — |  | 126 |  |  | 104 |  | — |  | 104 |  |  | 111 |  | — |  | 111 |  |  | 112 |  | — |  | 112 |  |  | 96 |  | — |  | 96 |  |
Mortgage banking and title |  | 53 |  | — |  | 53 |  |  | 57 |  | — |  | 57 |  |  | 66 |  | — |  | 66 |  |  | 4 |  | — |  | 4 |  |  | 2 |  | — |  | 2 |  |
Brokerage, trust, and insurance |  | 33 |  | — |  | 33 |  |  | 31 |  | — |  | 31 |  |  | 30 |  | — |  | 30 |  |  | 22 |  | — |  | 22 |  |  | 23 |  | — |  | 23 |  |
Service charges and fees |  | 53 |  | — |  | 53 |  |  | 53 |  | — |  | 53 |  |  | 50 |  | — |  | 50 |  |  | 35 |  | — |  | 35 |  |  | 36 |  | — |  | 36 |  |
Card and digital banking fees |  | 17 |  | — |  | 17 |  |  | 18 |  | — |  | 18 |  |  | 17 |  | — |  | 17 |  |  | 12 |  | — |  | 12 |  |  | 12 |  | — |  | 12 |  |
Deferred compensation income |  | 3 |  | — |  | 3 |  |  | 9 |  | — |  | 9 |  |  | 4 |  | — |  | 4 |  |  | 8 |  | — |  | 8 |  |  | (10) |  | — |  | (10) |  |
Other noninterest income |  | 15 |  | (1) |  | 14 |  |  | 16 |  | (1) |  | 15 |  |  | 546 |  | (532) |  | 14 |  |  | 12 |  | — |  | 12 |  |  | 15 |  | — |  | 15 |  |
Total noninterest income |  | 298 |  | (1) |  | 297 |  |  | 288 |  | (1) |  | 288 |  |  | 823 |  | (532) |  | 291 |  |  | 206 |  | — |  | 206 |  |  | 175 |  | — |  | 175 |  |
Total revenue |  | 806 |  | (1) |  | 805 |  |  | 810 |  | (1) |  | 810 |  |  | 1,355 |  | (532) |  | 823 |  |  | 512 |  | — |  | 512 |  |  | 478 |  | — |  | 478 |  |
Noninterest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits |  | 196 |  | — |  | 195 |  |  | 200 |  | — |  | 200 |  |  | 201 |  | (1) |  | 200 |  |  | 111 |  | (5) |  | 107 |  |  | 113 |  | (1) |  | 112 |  |
Incentives and commissions |  | 120 |  | (21) |  | 99 |  |  | 110 |  | (21) |  | 89 |  |  | 126 |  | (34) |  | 91 |  |  | 79 |  | — |  | 79 |  |  | 81 |  | — |  | 81 |  |
Deferred compensation expense |  | 3 |  | — |  | 3 |  |  | 9 |  | — |  | 9 |  |  | 3 |  | — |  | 3 |  |  | 9 |  | — |  | 9 |  |  | (10) |  | — |  | (10) |  |
Total personnel expense |  | 318 |  | (21) |  | 297 |  |  | 319 |  | (21) |  | 298 |  |  | 329 |  | (35) |  | 294 |  |  | 200 |  | (5) |  | 195 |  |  | 183 |  | (1) |  | 182 |  |
Occupancy and equipment |  | 76 |  | (4) |  | 72 |  |  | 76 |  | (2) |  | 74 |  |  | 77 |  | (4) |  | 73 |  |  | 46 |  | — |  | 46 |  |  | 44 |  | — |  | 44 |  |
Outside services |  | 58 |  | (4) |  | 54 |  |  | 59 |  | (7) |  | 52 |  |  | 78 |  | (32) |  | 46 |  |  | 38 |  | (5) |  | 33 |  |  | 38 |  | (2) |  | 37 |  |
Amortization of intangible assets |  | 14 |  | (1) |  | 13 |  |  | 15 |  | (1) |  | 14 |  |  | 15 |  | (1) |  | 14 |  |  | 5 |  | — |  | 5 |  |  | 5 |  | — |  | 5 |  |
Other noninterest expense | 78 |  | (50) |  | 28 |  |  | 39 |  | (4) |  | 35 |  |  | 89 |  | (44) |  | 45 |  |  | 31 |  | (4) |  | 27 |  |  | 31 |  | (3) |  | 28 |  |
Total noninterest expense | 544 |  | (80) |  | 464 |  |  | 508 |  | (34) |  | 474 |  |  | 587 |  | (116) |  | 471 |  |  | 321 |  | (14) |  | 307 |  |  | 302 |  | (6) |  | 296 |  |
Pre-provision net revenue | 262 |  | 79 |  | 340 |  |  | 302 |  | 33 |  | 335 |  |  | 768 |  | (416) |  | 352 |  |  | 191 |  | 14 |  | 205 |  |  | 175 |  | 6 |  | 181 |  |
Provision for credit losses | (45) |  | — |  | (45) |  |  | 1 |  | — |  | 1 |  |  | 227 |  | (147) |  | 80 |  |  | 121 |  | — |  | 121 |  |  | 154 |  | — |  | 154 |  |
Income before income taxes | 307 |  | 79 |  | 386 |  |  | 301 |  | 33 |  | 334 |  |  | 541 |  | (269) |  | 272 |  |  | 69 |  | 14 |  | 84 |  |  | 21 |  | 6 |  | 27 |  |
Provision for income taxes | 71 |  | 19 |  | 90 |  |  | 56 |  | 13 |  | 69 |  |  | 2 |  | 61 |  | 63 |  |  | 13 |  | 3 |  | 15 |  |  | 5 |  | 1 |  | 6 |  |
Net income | 235 |  | 60 |  | 295 |  |  | 245 |  | 20 |  | 265 |  |  | 539 |  | (331) |  | 208 |  |  | 57 |  | 12 |  | 68 |  |  | 16 |  | 5 |  | 21 |  |
Net income attributable to noncontrolling interest | 3 |  |  | 3 |  |  | 3 |  | — |  | 3 |  |  | 3 |  | — |  | 3 |  |  | 3 |  | — |  | 3 |  |  | 3 |  | — |  | 3 |  |
Net income attributable to controlling interest | 233 |  | 60 |  | 292 |  |  | 242 |  | 20 |  | 262 |  |  | 536 |  | (331) |  | 205 |  |  | 54 |  | 12 |  | 66 |  |  | 14 |  | 5 |  | 18 |  |
Preferred stock dividends | 8 |  | — |  | 8 |  |  | 8 |  | — |  | 8 |  |  | 13 |  | — |  | 13 |  |  | 2 |  | — |  | 2 |  |  | 2 |  | — |  | 2 |  |
Net income available to common shareholders | $ | 225 |  | $ | 60 |  | $ | 284 |  |  | $ | 234 |  | $ | 20 |  | $ | 255 |  |  | $ | 523 |  | $ | (331) |  | $ | 193 |  |  | $ | 52 |  | $ | 12 |  | $ | 64 |  |  | $ | 12 |  | $ | 5 |  | $ | 17 |  |
Common Stock Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS |  | $ | 0.41 |  | $ | (0.11) |  | $ | 0.51 |  |  | $ | 0.42 |  | $ | (0.04) |  | $ | 0.46 |  |  | $ | 0.95 |  | $ | 0.60 |  | $ | 0.35 |  |  | $ | 0.17 |  | $ | (0.04) |  | $ | 0.21 |  |  | $ | 0.04 |  | $ | (0.01) |  | $ | 0.05 |  |
Basic shares |  | 552 |  |  | 552 |  |  | 553 |  |  | 553 |  |  | 550 |  |  | 550 |  |  | 312 |  |  | 312 |  |  | 312 |  |  | 312 |  |
Diluted EPS |  | $ | 0.40 |  | $ | (0.11) |  | $ | 0.51 |  |  | $ | 0.42 |  | $ | (0.04) |  | $ | 0.46 |  |  | $ | 0.95 |  | $ | 0.60 |  | $ | 0.35 |  |  | $ | 0.17 |  | $ | (0.04) |  | $ | 0.20 |  |  | $ | 0.04 |  | $ | (0.01) |  | $ | 0.05 |  |
Diluted shares |  | 558 |  |  | 558 |  |  | 557 |  |  | 557 |  |  | 551 |  |  | 551 |  |  | 313 |  |  | 313 |  |  | 313 |  |  | 313 |  |
Memo: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Revenue-FTE (Non-GAAP) |  | $ | 806 |  | $ | 2 |  | $ | 808 |  |  | $ | 810 |  | $ | 2 |  | $ | 813 |  |  | $ | 1,355 |  | $ | (529) |  | $ | 826 |  |  | $ | 512 |  | $ | 3 |  | $ | 514 |  |  | $ | 478 |  | $ | 2 |  | $ | 480 |  |
PPNR-FTE (Non-GAAP) |  | $ | 262 |  | $ | 82 |  | $ | 343 |  |  | $ | 302 |  | $ | 36 |  | $ | 339 |  |  | $ | 768 |  | $ | (414) |  | $ | 355 |  |  | $ | 191 |  | $ | 17 |  | $ | 207 |  |  | $ | 175 |  | $ | 8 |  | $ | 183 |  |

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

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
($s in millions, except per share data) |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  |  |  |  |
Adjusted Diluted EPS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income available to common ("NIAC") (GAAP) | a | $ | 225 |  |  | $ | 234 |  |  | $ | 523 |  |  | $ | 52 |  |  | $ | 12 |  |  |  |  |  |
Plus Tax effected notable items (Non-GAAP) (a) |  | 60 |  |  | 20 |  |  | (331) |  |  | 12 |  |  | 5 |  |  |  |  |  |
Adjusted NIAC (Non-GAAP) | b | $ | 284 |  |  | $ | 255 |  |  | $ | 193 |  |  | $ | 64 |  |  | $ | 17 |  |  |  |  |  |
Diluted Shares (GAAP) | c | 558 |  |  | 557 |  |  | 551 |  |  | 313 |  |  | 313 |  |  |  |  |  |
Diluted EPS (GAAP) | a/c | $ | 0.40 |  |  | $ | 0.42 |  |  | $ | 0.95 |  |  | $ | 0.17 |  |  | $ | 0.04 |  |  |  |  |  |
Adjusted diluted EPS (Non-GAAP) | b/c | $ | 0.51 |  |  | $ | 0.46 |  |  | $ | 0.35 |  |  | $ | 0.20 |  |  | $ | 0.05 |  |  |  |  |  |
Adjusted Net Income ("NI") and Adjusted Return on Assets ("ROA") |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Income ("NI") (GAAP) |  | $ | 235 |  |  | $ | 245 |  |  | $ | 539 |  |  | $ | 57 |  |  | $ | 16 |  |  |  |  |  |
Plus Tax effected notable items (Non-GAAP) (a) |  | 60 |  |  | 20 |  |  | (331) |  |  | 12 |  |  | 5 |  |  |  |  |  |
Adjusted NI (Non-GAAP) |  | $ | 295 |  |  | $ | 265 |  |  | $ | 208 |  |  | $ | 68 |  |  | $ | 21 |  |  |  |  |  |
NI (annualized) (GAAP) | d | $ | 955 |  |  | $ | 974 |  |  | $ | 2,144 |  |  | $ | 228 |  |  | $ | 66 |  |  |  |  |  |
Adjusted NI (annualized) (Non-GAAP) | e | $ | 1,198 |  |  | $ | 1,055 |  |  | $ | 829 |  |  | $ | 275 |  |  | $ | 84 |  |  |  |  |  |
Average assets (GAAP) | f | $ | 85,401 |  |  | $ | 83,809 |  |  | $ | 81,683 |  |  | $ | 47,934 |  |  | $ | 43,552 |  |  |  |  |  |
ROA (GAAP) | d/f | 1.12 | % |  | 1.16 | % |  | 2.63 | % |  | 0.48 | % |  | 0.15 | % |  |  |  |  |
Adjusted ROA (Non-GAAP) | e/f | 1.40 | % |  | 1.26 | % |  | 1.01 | % |  | 0.57 | % |  | 0.19 | % |  |  |  |  |
Return on Average Common Equity ("ROCE")/ Return on Average Tangible Common Equity ("ROTCE")/ Adjusted ROTCE |  |  |  |
NIAC (annualized) (GAAP) | g | $ | 911 |  |  | $ | 933 |  |  | $ | 2,082 |  |  | $ | 210 |  |  | $ | 49 |  |  |  |  |  |
Adjusted NIAC (annualized) (Non-GAAP) | h | $ | 1,154 |  |  | $ | 1,013 |  |  | $ | 767 |  |  | $ | 257 |  |  | $ | 67 |  |  |  |  |  |
Average Common Equity (GAAP) | i | $ | 7,583 |  |  | $ | 7,444 |  |  | $ | 7,309 |  |  | $ | 4,673 |  |  | $ | 4,611 |  |  |  |  |  |
Intangible Assets (GAAP) (b) |  | 1,857 |  |  | 1,871 |  |  | 1,794 |  |  | 1,555 |  |  | 1,560 |  |  |  |  |  |
Average Tangible Common Equity (Non-GAAP) | j | $ | 5,726 |  |  | $ | 5,573 |  |  | $ | 5,515 |  |  | $ | 3,117 |  |  | $ | 3,051 |  |  |  |  |  |
Equity Adjustment (Non-GAAP) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |  |
Adjusted Average Tangible Common Equity (Non-GAAP) | k | $ | 5,726 |  |  | $ | 5,573 |  |  | $ | 5,515 |  |  | $ | 3,117 |  |  | $ | 3,051 |  |  |  |  |  |
ROCE (GAAP) | g/i | 12.01 | % |  | 12.53 | % |  | 28.49 | % |  | 4.50 | % |  | 1.05 | % |  |  |  |  |
ROTCE (Non-GAAP) | g/j | 15.90 | % |  | 16.73 | % |  | 37.75 | % |  | 6.74 | % |  | 1.59 | % |  |  |  |  |
Adjusted ROTCE (Non-GAAP) | h/k | 20.15 | % |  | 18.18 | % |  | 13.90 | % |  | 8.26 | % |  | 2.19 | % |  |  |  |  |

(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.
24

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(In millions) |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q20 |  | 1Q20 |  |  |  |  |
Adjusted Noninterest Income as a % of Total Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest income (GAAP) | k | $ | 298 |  |  | $ | 288 |  |  | $ | 823 |  |  | $ | 206 |  |  | $ | 175 |  |  |  |  |  |
Plus notable items (GAAP) (a) |  | (1) |  |  | (1) |  |  | (532) |  |  | — |  |  | — |  |  |  |  |  |
Adjusted noninterest income (Non-GAAP) | l | $ | 297 |  |  | $ | 288 |  |  | $ | 291 |  |  | $ | 206 |  |  | $ | 175 |  |  |  |  |  |
Revenue (GAAP) | m | $ | 806 |  |  | $ | 810 |  |  | $ | 1,355 |  |  | $ | 512 |  |  | $ | 478 |  |  |  |  |  |
Taxable-equivalent adjustment |  | 3 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | 2 |  |  |  |  |  |
Revenue- Taxable-equivalent (Non-GAAP) |  | 809 |  |  | 813 |  |  | 1,358 |  |  | 514 |  |  | 480 |  |  |  |  |  |
Plus notable items (GAAP) (a) |  | (1) |  |  | (1) |  |  | (532) |  |  | — |  |  | — |  |  |  |  |  |
Adjusted revenue (Non-GAAP) | n | $ | 808 |  |  | $ | 813 |  |  | $ | 826 |  |  | $ | 514 |  |  | $ | 480 |  |  |  |  |  |
Noninterest income as a % of total revenue (GAAP) | k/m | 37.00 | % |  | 35.61 | % |  | 60.72 | % |  | 40.32 | % |  | 36.59 | % |  |  |  |  |
Adjusted noninterest income as a % of total revenue (Non-GAAP) | l/n | 36.78 | % |  | 35.42 | % |  | 35.20 | % |  | 40.12 | % |  | 36.42 | % |  |  |  |  |
Adjusted Efficiency Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest expense (GAAP) | o | $ | 544 |  |  | $ | 508 |  |  | $ | 587 |  |  | $ | 321 |  |  | $ | 302 |  |  |  |  |  |
Plus notable items (GAAP) (a) |  | (80) |  |  | (34) |  |  | (116) |  |  | (14) |  |  | (6) |  |  |  |  |  |
Adjusted noninterest expense (Non-GAAP) | p | $ | 464 |  |  | $ | 474 |  |  | $ | 471 |  |  | $ | 307 |  |  | $ | 296 |  |  |  |  |  |
Revenue (GAAP) | q | $ | 806 |  |  | $ | 810 |  |  | $ | 1,355 |  |  | $ | 512 |  |  | $ | 478 |  |  |  |  |  |
Taxable-equivalent adjustment |  | 3 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | 2 |  |  |  |  |  |
Revenue- Taxable-equivalent (Non-GAAP) |  | 809 |  |  | 813 |  |  | 1,358 |  |  | 514 |  |  | 480 |  |  |  |  |  |
Plus notable items (GAAP) (a) |  | (1) |  |  | (1) |  |  | (532) |  |  | — |  |  | — |  |  |  |  |  |
Adjusted revenue (Non-GAAP) | r | $ | 808 |  |  | $ | 813 |  |  | $ | 826 |  |  | $ | 514 |  |  | $ | 480 |  |  |  |  |  |
Efficiency ratio (GAAP) | o/q | 67.53 | % |  | 62.71 | % |  | 43.31 | % |  | 62.74 | % |  | 63.26 | % |  |  |  |  |
Adjusted efficiency ratio (Non-GAAP) | p/r | 57.49 | % |  | 58.34 | % |  | 57.06 | % |  | 59.65 | % |  | 61.76 | % |  |  |  |  |

(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, Unaudited
(In millions)
NII/NIM Analysis |  |  |
4Q20 Reported |  | $ | 525 |  | 2.71 | %
PPP |  | 20 |  | (0.05) |
Time Deposit Amortization |  | 8 |  | 0.04 |
Loan Accretion |  | 33 |  | 0.19 |
Premium Amortization |  | (18) |  | (0.10) |
4Q20 Core (Non-GAAP) |  | $ | 482 |  | 2.63 | %
Days |  | (8) |  | — |
Funding Costs |  | 11 |  | 0.06 |
4Q20 Unusual Items |  | 5 |  | 0.03 |
LIBOR Impact and other |  | (2) |  | (0.02) |
Interest-bearing cash excluding excess cash |  | (25) |  | (0.07) |
Excess cash |  | 1 |  | (0.10) |
1Q21 Core (Non-GAAP) |  | $ | 464 |  | 2.52 | %
PPP |  | 24 |  | 0.01 | %
Time Deposit Amortization |  | 4 |  | 0.02 | %
Loan Accretion |  | 32 |  | 0.17 | %
Premium Amortization |  | (14) |  | (0.07) | %
1Q21 Reported |  | $ | 511 |  | 2.63 | %

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 - taxable equivalent.
Efficiency Ratio: Ratio is noninterest expense to total revenue - taxable equivalent .
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