Document

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.

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.

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.


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 equivalent1	$	555		$	578		$	381		$	(23)		(4)	$	174		46
Interest expense- taxable equivalent1	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 revenue3	262			302			175			(40)			(13)	87			49
Provision for credit losses4	(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 income5	$	295		$	265		$	21		$	30		11	$	274		NM
Adjusted net income available to common shareholders5	$	284		$	255		$	17		$	30		12	$	267		NM
Common stock information
EPS	$	0.40		$	0.42		$	0.04		$	(0.02)		(5)	$	0.36		NM
Adjusted EPS5	$	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 ratio5	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 assets5	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 ROTCE5	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 revenue5	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.

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.

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.

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.


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 equivalent1	$	555		$	578		$	601		$	349		$	381		$	(23)	(4)	%	$	174	46	%
Interest expense- taxable equivalent1	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 income2	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 revenue3	262			302			768			191			175			(40)		(13)		87		49
Provision for credit losses4	(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.


ADJUSTED5 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 revenue5	$	343		$	339		$	355		$	207		$	183		$	4	1	%	$	160	87	%

Adjusted provision for credit losses4	$	(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.


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


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 assets5	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 ROTCE5	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 revenue5	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 ratio5	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 share5	$	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.

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 other6	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 losses7	(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 earnings7	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.

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 other6	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 losses7	(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 earnings7	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.


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.


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.


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.


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.


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	%

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 revenue3	254			229			244			116			93			25			11		161			NM
Provision for credit losses4	(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 margin8	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 equity9	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.

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 revenue3	190			205			205			143			103			(15)			(7)		87			84
Provision for credit losses4	(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 margin8	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 equity9	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.

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 income2	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 revenue3	(182)		(131)		319		(68)		(21)		(51)		(39)		(161)		NM
Provision for credit losses4	(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.


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.


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.


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.


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.


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.

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