EX-99.1 2 a3q2021earningsrelease.htm 3Q2021 EARNINGS RELEASE

First Horizon Corporation Reports Third Quarter Net Income Available to Common Shareholders of $224 Million,
or EPS of $0.41; $275 Million, or $0.50, on an Adjusted basis*
ROTCE of 15.0% and Adjusted ROTCE of 18.4% with tangible book value per share of $10.88*
MEMPHIS, TN (October 20, 2021) – First Horizon Corporation (NYSE: FHN or “First Horizon”) today reported third quarter 2021 net income available to common shareholders ("NIAC") of $224 million, or earnings per share of $0.41, compared with second quarter 2021 NIAC of $295 million, or earnings per share of $0.53.
Third quarter 2021 results were reduced by a net $51 million after-tax, or $0.09 per share, of notable items tied to the IBERIABANK Corporation Merger ("IBKC Merger") and early retirement of certain trust preferred securities compared with a net $26 million after-tax reduction, or $0.05 per share, in second quarter 2021. Excluding notable items, adjusted third quarter 2021 NIAC of $275 million, or $0.50 per share, decreased from $321 million, or $0.58 per share in second quarter. The decrease was led by a $0.04 per share reduction tied to lower provision credit.
“Our results this quarter reflect the emerging benefits of the power of the combined organization,” said President and Chief Executive Officer Bryan Jordan. “Operating in high growth markets with an attractive base of specialty businesses positions us well to deliver more resilient results through a range of cycles. We delivered EPS of $0.50 and ROTCE of over 18% on an adjusted basis despite the challenging interest rate environment. Core net interest income was up 1% as we delivered loan growth of 1% before the impact of the PPP portfolio and continued to drive down our funding costs. Additionally as markets reopened during the quarter, we saw growth in more traditional banking fee income businesses including wealth and deposit products.”
“We also continued to focus on reallocating capital and investments toward higher growth, higher return opportunities across the franchise, said Jordan. “I am inspired by our associates whose shared passion for building relationships and strengthening the communities we serve helps position us to deliver top-quartile returns in the future.”
Notable Items

Notable Items |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited ($s in millions, except per share data) | 3Q21 |  | 2Q21 |  |  | 3Q20 |  |  |  |
Summary of Notable Items: |  |  |  |  |  |  |  |  |  |
Merger/acquisition-related items: |  |  |  |  |  |  |  |  |  |
Purchase accounting gain (other noninterest income)* | $ | — |  |  | $ | (2) |  |  |  | $ | 532 |  |  |  |  |
Branch sale gain (other noninterest income) | 2 |  |  | — |  |  |  | — |  |  |  |  |
Merger/acquisition expense | (46) |  |  | (32) |  |  |  | (101) |  |  |  |  |
Non-PCD provision expense | — |  |  | — |  |  |  | (147) |  |  |  |  |
Total Net Merger/acquisition- related items: | (45) |  |  | (34) |  |  |  | 284 |  |  |  |  |
Other notable items: |  |  |  |  |  |  |  |  |  |
Gain/(loss) on TruPS redemption | (23) |  |  | — |  |  |  | — |  |  |  |  |
Charitable contributions | — |  |  | — |  |  |  | (15) |  |  |  |  |
Total net other notable items: | (23) |  |  | — |  |  |  | (15) |  |  |  |  |
Total Notable items (pre-tax) | $ | (68) |  |  | $ | (34) |  |  |  | $ | 269 |  |  |  |  |
Total Notable items (after-tax) | (51) |  |  | (26) |  |  |  | 331 |  |  |  |  |
EPS impact of notable items | $ | (0.09) |  |  | $ | (0.05) |  |  |  | $ | 0.60 |  |  |  |  |
Numbers may not foot due to rounding |  |  |  |  |  |  |  |  |  |
*' Purchase accounting gain is non-taxable income |  |  |  |  |  |  |  |  |  |

Third quarter 2021 GAAP results were reduced by a net $51 million after-tax impact, or $0.09 per share, of notable items compared with a net $26 million impact, or $0.05 per share, in second quarter 2021.
Third quarter net notable items were tied to:
•$45 million of net IBKC merger-related items.
•$23 million loss on retirement of legacy IBKC trust preferred securities included in other noninterest income.
*ROTCE, PPNR, Core net interest income (NII), tangible book value per share, loans and leases excluding PPP, and "Adjusted" results are Non-GAAP Financial Measures; NII, Total Revenue, NIM and PPNR are presented on a fully taxable equivalent basis; References to loans include leases and EPS are based on diluted shares; Capital ratios are preliminary. See page 6 for information on our use of Non-GAAP measures and their reconciliation to GAAP beginning on page 21.
1

Third Quarter 2021 Highlights*
•Total revenue of $738 million decreased $43 million from second quarter 2021 levels driven by a net $19 million decrease tied to notable items. Adjusted revenue of $763 million decreased $24 million largely reflecting expected reductions in other noninterest income, fixed income and mortgage banking fees.
•Net interest income of $492 million declined $5 million, or 1% from second quarter 2021 levels driven by a $9 million reduction in net merger-related and PPP loan portfolio benefits. Core net interest income increased 1% from 2% growth in commercial loans excluding PPP and lower deposit costs.
•Noninterest expense of $526 million increased $29 million from second quarter 2021 driven by a $14 million increase in notable items. Adjusted noninterest expense of $480 million increased $15 million from second quarter 2021 largely on strategic investments and costs tied to markets reopening.
•Provision for credit losses was a benefit of $85 million compared with a benefit of $115 million, largely reflecting further improvement in the macroeconomic outlook and positive loan portfolio credit grade migration.
•Average interest earning assets of $81.8 billion increased $791 million, or 1%, from second quarter 2021 largely as a $2.0 billion increase in excess cash was partially offset by a $1.3 billion decrease in average loans driven by a $1.8 billion decrease in PPP loans.
•Average loans before the impact of PPP increased $519 million, or 1%, as a $691 million increase in commercial was partially offset by a $172 million decrease in consumer.
•Average deposits of $73.7 billion increased $575 million, or 1%, from second quarter 2021 as a $1.1 billion increase in noninterest-bearing deposits was partially offset by a $506 million decrease in interest-bearing deposits. Interest-bearing deposit costs of 0.17% improved 3 basis points from second quarter 2021.
•Allowance for credit losses to loans ratio of 1.45% decreased from 1.57% at June 30, 2021; the allowance for loan losses to nonperforming loans ratio of 211% decreased from 237% at June 30, 2021.
•Net charge-offs of 0.02% in third quarter 2021 compared with net recoveries of 0.07% reflecting an unusual level of recoveries in second quarter 2021; nonperforming loans of $347 million increased 1% from $344 million and the nonperforming loan ratio of 0.63% increased from 0.61% as of June 30, 2021.
•Tangible book value per share of $10.88 at September 30, 2021 increased 1% from $10.74 at June 30, 2021 as net income was partially offset by the impact of capital return.
•ROCE of 11.4%; ROTCE of 15.0%; Adjusted ROTCE of 18.4%; CET 1 ratio of 10.1%; and total capital ratio of 12.6%.
•Returned $224 million of capital to common shareholders including share repurchases and dividends.
•Share repurchases of 9 million shares of common stock during the quarter with a weighted average price of $15.82.
Strategic Update
•Expect to fully integrate systems in February 2022 given Hurricane Ida impact.
•On track to deliver ~$200 million of targeted annualized net cost saves by 4Q22.
•Achieved $96 million of annualized net cost saves year-to-date.
•Committed to delivering additional efficiencies in 2022.
COVID-19 Update
•~$4 billion Paycheck Protection Program (PPP) loans forgiven year-to-date; Period-end PPP loan balance of $2 billion.
•Loans on deferral represented 0.3% of total loans excluding PPP as of September 30, 2021, down from June 30, 2021 levels of 0.7%.
2

SUMMARY RESULTS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  | 3Q21 Change vs.
($s in millions, except per share and balance sheet data) |  | 3Q21 |  | 2Q21 |  | 3Q20 |  | 2Q21 |  | 3Q20
|  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |
Income Statement |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income - taxable equivalent 1 |  | $ | 536 |  |  | $ | 545 |  |  | $ | 601 |  |  | $ | (9) |  |  | (2) |  |  | $ | (65) |  |  | (11) |  |
Interest expense- taxable equivalent 1 |  | 41 |  |  | 45 |  |  | 66 |  |  | (4) |  |  | (9) |  |  | (25) |  |  | (38) |  |
Net interest income- taxable equivalent |  | 495 |  |  | 500 |  |  | 535 |  |  | (5) |  |  | (1) |  |  | (40) |  |  | (7) |  |
Less: Taxable-equivalent adjustment |  | 3 |  |  | 3 |  |  | 3 |  |  | — |  |  | — |  |  | — |  |  | — |  |
Net interest income |  | 492 |  |  | $ | 497 |  |  | $ | 532 |  |  | $ | (5) |  |  | (1) |  |  | (40) |  |  | (8) |  |
Noninterest income |  | 247 |  |  | 285 |  |  | 823 |  |  | (38) |  |  | (13) |  |  | (576) |  |  | (70) |  |
Total revenue |  | 738 |  |  | 781 |  |  | 1,355 |  |  | (43) |  |  | (6) |  |  | (617) |  |  | (46) |  |
Noninterest expense |  | 526 |  |  | 497 |  |  | 587 |  |  | 29 |  |  | 6 |  |  | (61) |  |  | (10) |  |
Pre-provision net revenue 4 |  | 213 |  |  | 284 |  |  | 768 |  |  | (71) |  |  | (25) |  |  | (555) |  |  | (72) |  |
Provision for credit losses 5 |  | (85) |  |  | (115) |  |  | 227 |  |  | 30 |  |  | 26 |  |  | (312) |  |  | (137) |  |
Income before income taxes |  | 298 |  |  | 399 |  |  | 541 |  |  | (101) |  |  | (25) |  |  | (243) |  |  | (45) |  |
Provision for income taxes |  | 63 |  |  | 88 |  |  | 2 |  |  | (25) |  |  | (28) |  |  | 61 |  |  | NM |
Net income |  | 235 |  |  | 311 |  |  | 539 |  |  | (76) |  |  | (24) |  |  | (304) |  |  | (56) |  |
Net income attributable to noncontrolling interest |  | 3 |  |  | 3 |  |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 1 |  |
Net income attributable to controlling interest |  | 232 |  |  | 308 |  |  | 536 |  |  | (76) |  |  | (25) |  |  | (304) |  |  | (57) |  |
Preferred stock dividends |  | 8 |  |  | 13 |  |  | 13 |  |  | (5) |  |  | (38) |  |  | (5) |  |  | (37) |  |
Net income available to common shareholders |  | $ | 224 |  |  | $ | 295 |  |  | $ | 523 |  |  | $ | (71) |  |  | (24) |  |  | $ | (299) |  |  | (57) |  |
Adjusted net income 5 |  | $ | 286 |  |  | $ | 337 |  |  | $ | 208 |  |  | $ | (51) |  |  | (15) |  |  | $ | 78 |  |  | 38 |  |
Adjusted net income available to common shareholders 5 |  | $ | 275 |  |  | $ | 321 |  |  | $ | 193 |  |  | $ | (46) |  |  | (14) |  |  | $ | 82 |  |  | 42 |  |
Common stock information |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS |  | $ | 0.41 |  |  | $ | 0.53 |  |  | $ | 0.95 |  |  | $ | (0.12) |  |  | (23) |  |  | $ | (0.54) |  |  | (57) |  |
Adjusted EPS 5 |  | $ | 0.50 |  |  | $ | 0.58 |  |  | $ | 0.35 |  |  | $ | (0.08) |  |  | (14) |  |  | $ | 0.15 |  |  | 43 |  |
Diluted shares |  | 550 |  |  | 556 |  |  | 551 |  |  | (6) |  |  | (1) |  |  | (1) |  |  | — |  |
Key performance metrics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest margin |  | 2.40 | % |  | 2.47 | % |  | 2.84 | % |  | (7) | bp |  |  |  | (44) | bp |  |  |
Efficiency ratio |  | 71.21 |  |  | 63.67 |  |  | 43.31 |  |  | 754 |  |  |  |  | 2,790 |  |  |  |
Adjusted efficiency ratio 6 |  | 62.87 |  |  | 59.17 |  |  | 57.06 |  |  | 370 |  |  |  |  | 581 |  |  |  |
Effective income tax rate |  | 21.13 |  |  | 22.03 |  |  | 0.41 |  |  | (90) |  |  |  |  | 2,072 |  |  |  |
Return on average assets |  | 1.05 |  |  | 1.42 |  |  | 2.63 |  |  | (37) |  |  |  |  | (158) |  |  |  |
Adjusted return on average assets 6 |  | 1.28 |  |  | 1.54 |  |  | 1.01 |  |  | (26) |  |  |  |  | 27 |  |  |  |
Return on average common equity (“ROCE") |  | 11.4 |  |  | 15.5 |  |  | 28.5 |  |  | (402) |  |  |  |  | (1,706) |  |  |  |
Return on average tangible common equity (“ROTCE”)6 |  | 15.0 |  |  | 20.4 |  |  | 37.8 |  |  | (541) |  |  |  |  | (2,280) |  |  |  |
Adjusted ROTCE 6 |  | 18.4 |  |  | 22.2 |  |  | 13.9 |  |  | (382) |  |  |  |  | 446 |  |  |  |
Noninterest income as a % of total revenue |  | 33.39 |  |  | 36.43 |  |  | 60.72 |  |  | (304) |  |  |  |  | (2,733) |  |  |  |
Adjusted noninterest income as a % of total revenue 6 |  | 35.14 | % |  | 36.49 | % |  | 35.20 | % |  | (135) | bp |  |  |  | (6) | bp |  |  |
Balance Sheet (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average loans |  | $ | 55.5 |  |  | $ | 56.8 |  |  | $ | 60.1 |  |  | $ | (1.3) |  |  | (2) |  |  | $ | (4.6) |  |  | (8) |  |
Average deposits |  | 73.7 |  |  | 73.2 |  |  | 67.1 |  |  | 0.6 |  |  | 1 |  |  | 6.6 |  |  | 10 |  |
Average assets |  | 88.4 |  |  | 87.6 |  |  | 81.7 |  |  | 0.8 |  |  | 1 |  |  | 6.7 |  |  | 8 |  |
Average common equity |  | $ | 7.8 |  |  | $ | 7.7 |  |  | $ | 7.3 |  |  | $ | 0.1 |  |  | 1 |  |  | $ | 0.5 |  |  | 6 |  |
Asset Quality Highlights |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses to loans and leases |  | 1.45 | % |  | 1.57 | % |  | 1.80 | % |  | (12) | bp |  |  |  | (36) | bp |  |  |
Net charge-off ratio |  | 0.02 |  |  | (0.07) |  |  | 0.44 |  |  | 8 |  |  |  |  | (42) |  |  |  |
Nonperforming loan and leases ratio |  | 0.63 | % |  | 0.61 | % |  | 0.75 | % |  | 2 | bp |  |  |  | (12) | bp |  |  |
Capital Ratio Highlights (current quarter is an estimate) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common Equity Tier 1 |  | 10.1 | % |  | 10.3 | % |  | 9.2 | % |  | (20) | bp |  |  |  | 87 | bp |  |  |
Tier 1 |  | 11.2 |  |  | 11.4 |  |  | 10.3 |  |  | (22) |  |  |  |  | 97 |  |  |  |
Total Capital |  | 12.6 |  |  | 13.1 |  |  | 12.1 |  |  | (52) |  |  |  |  | 57 |  |  |  |
Tier 1 leverage |  | 8.1 | % |  | 8.2 | % |  | 8.3 | % |  | (10) | bp |  |  |  | (12) | 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 20.
3

Third Quarter 2021 versus Second Quarter 2021
Net interest income
Net interest income of $492 million decreased $5 million from second quarter 2021 driven by a $9 million reduction in net merger-related and PPP benefits. Core net interest income of $454 million was up $4 million driven by the benefit of lower deposit costs, day count, commercial loan growth excluding PPP and higher investment portfolio income. Net interest margin of 2.40% decreased 7 basis points from second quarter 2021 largely as the impact of higher excess cash, tighter loan spreads and lower interest recoveries on nonperforming loans more than offset the benefit of lower deposit costs.
Noninterest income
Noninterest income of $247 million decreased $38 million driven by a net $19 million reduction tied to notable items. Adjusted noninterest income of $268 million decreased $19 million as growth in wealth and service charges and fees was more than offset by expected declines in other noninterest income, fixed income and mortgage banking and title fees. Fixed income average daily revenue decreased modestly to $1.3 million from $1.4 million in second quarter 2021.
Noninterest expense
Noninterest expense of $526 million increased $29 million from second quarter 2021 driven by a net $14 million increase in notable items. Adjusted noninterest expense of $480 million increased $15 million from second quarter 2021 levels as a $4 million reduction in personnel expense was more than offset by growth in outside services and other noninterest expense driven by strategic investments, costs tied to markets reopening, and tax-credit related contributions. Results reflect $1 million benefit tied to incremental merger cost savings.
Loans and leases
Average loan and lease balances of $55.5 billion decreased $1.3 billion from second quarter 2021 driven by a $1.8 billion decrease in PPP loans. Loan trends excluding PPP increased $519 million, or 1% compared to the prior quarter, and 4% annualized, reflects a $691 million increase in commercial partially offset by a $172 million decrease in consumer. Commercial loan growth excluding PPP reflects a $287 million increase in loans to mortgage companies (LMC), a $490 million increase in other commercial and industrial (C&I) and partially offset by an $86 million decrease in commercial real estate. Period-end loans and leases of $55.4 billion were down $1.3 billion from second quarter 2021 driven by a $1.8 billion decrease in PPP loans. Before the impact of PPP, period-end loans increased $572 million, or 4% annualized, reflecting a $713 million increase in commercial and partially offset by a $141 million decrease in consumer. Period-end commercial loan growth excluding PPP was driven by growth in other C&I and loans to mortgage companies.
Deposits
Average deposits of $73.7 billion increased $575 million, or 1% from second quarter 2021 as a $1.1 billion increase in noninterest-bearing deposits was partially offset by a $506 million reduction in interest-bearing deposits. Period-end deposits of $74.3 billion increased $984 million from second quarter 2021 as a $1.5 billion increase in noninterest-bearing was partially offset by a $531 million decrease in interest-bearing deposits. Interest-bearing deposit costs of 17 basis points declined 3 basis points from second quarter 2021 levels reflecting continued discipline on deposit pricing.
Asset quality
Provision for credit losses benefit of $85 million compared to a benefit of $115 million in second quarter 2021, largely reflects improvement in the macroeconomic outlook and positive credit grade migration.
Net charge-offs of $3 million, or 2 basis points in 3Q21, compared to net recoveries of $10 million, or 7 basis points, in second quarter 2021 reflecting strong asset quality overall.
Nonperforming loans of $347 million increased $4 million from second quarter 2021 driven by an increase in the commercial, financial and industrial (C&I) portfolio. Third quarter 2021 allowance to nonperforming coverage ratio
4

of 211% compared with 237% in second quarter 2021. Third quarter 2021 nonperforming loans to loans ratio of 63 basis points compared with 61 basis points in second quarter 2021.
The allowance for credit losses to loans ratio decreased to 1.45% from 1.57% in second quarter 2021 largely reflecting continued improvement in the macroeconomic outlook and asset quality.
Capital
CET1 ratio of 10.1% in third quarter 2021 decreased from 10.3% in second quarter 2021. The reduction was tied to return of capital through share repurchases and dividends, and loan growth and higher unfunded commitments.
First Horizon returned $224 million in capital to common stockholders during the quarter including $142 million, or 9.0 million shares, of common stock repurchases.
Income taxes
The third quarter 2021 effective tax rate of 21.1% decreased from second quarter 2021 rate of 22.0%. On an adjusted basis, the effective tax rate of 21.8% in third quarter 2021 decreased from 22.2% in second quarter 2021.
Conference call information
Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on October 20 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 3626320. 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 October 20 until midnight CT on November 3. To listen to the replay, dial 1-877-344-7529 (U.S. callers) or 412-317-0088 (international callers); the access code is 10159826. 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 the forepart, and in Items 1, 1A, and 7, of FHN’s most recent Annual Report on Form 10-K; and in the forepart, 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.
5

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 fully taxable equivalent measures, core net interest income ("NII"), pre-provision net revenue ("PPNR"), loans and leases excluding paycheck protection program ('PPP"), return on average tangible common equity (“ROTCE”), tangible common equity (“TCE”) to tangible assets (“TA”), 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 21.
6

CONSOLIDATED INCOME STATEMENT |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | 3Q21 Change vs. |
($s in millions, except per share data) | 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q21 |  | 3Q20 |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Interest income - taxable equivalent 1 | $ | 536 |  |  | $ | 545 |  |  | $ | 555 |  |  | $ | 578 |  |  | $ | 601 |  |  | $ | (9) |  |  | (2) | % |  | $ | (65) |  |  | (11) | % |
Interest expense- taxable equivalent 1 | 41 |  |  | 45 |  |  | 45 |  |  | 53 |  |  | 66 |  |  | (4) |  |  | (9) |  |  | (25) |  |  | (38) |  |
Net interest income- taxable equivalent | 495 |  |  | 500 |  |  | 511 |  |  | 525 |  |  | 535 |  |  | (5) |  |  | (1) |  |  | (40) |  |  | (7) |  |
Less: Taxable-equivalent adjustment | 3 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | — |  |  | — |  |  | — |  |  | — |  |
Net interest income | 492 |  |  | 497 |  |  | 508 |  |  | 522 |  |  | 532 |  |  | (5) |  |  | (1) |  |  | (40) |  |  | (8) |  |
Noninterest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income | 96 |  |  | 102 |  |  | 126 |  |  | 104 |  |  | 111 |  |  | (6) |  |  | (6) |  |  | (15) |  |  | (13) |  |
Mortgage banking and title | 34 |  |  | 38 |  |  | 53 |  |  | 57 |  |  | 66 |  |  | (4) |  |  | (11) |  |  | (32) |  |  | (48) |  |
Brokerage, trust, and insurance | 37 |  |  | 35 |  |  | 33 |  |  | 31 |  |  | 30 |  |  | 2 |  |  | 6 |  |  | 7 |  |  | 24 |  |
Service charges and fees | 56 |  |  | 54 |  |  | 53 |  |  | 53 |  |  | 50 |  |  | 2 |  |  | 4 |  |  | 6 |  |  | 11 |  |
Card and digital banking fees | 21 |  |  | 21 |  |  | 17 |  |  | 18 |  |  | 17 |  |  | — |  |  | — |  |  | 4 |  |  | 27 |  |
Deferred compensation income | 3 |  |  | 7 |  |  | 3 |  |  | 9 |  |  | 4 |  |  | (4) |  |  | (57) |  |  | (1) |  |  | (22) |  |
Other noninterest income 2 | (1) |  |  | 27 |  |  | 15 |  |  | 16 |  |  | 546 |  |  | (28) |  |  | (104) |  |  | (547) |  |  | (100) |  |
Total noninterest income | 247 |  |  | 285 |  |  | 298 |  |  | 288 |  |  | 823 |  |  | (38) |  |  | (13) |  |  | (576) |  |  | (70) |  |
Total revenue | 738 |  |  | 781 |  |  | 806 |  |  | 810 |  |  | 1,355 |  |  | (43) |  |  | (6) |  |  | (617) |  |  | (46) |  |
Noninterest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits | 191 |  |  | 191 |  |  | 196 |  |  | 200 |  |  | 201 |  |  | — |  |  | — |  |  | (10) |  |  | (5) |  |
Incentives and commissions | 101 |  |  | 109 |  |  | 120 |  |  | 110 |  |  | 126 |  |  | (8) |  |  | (7) |  |  | (25) |  |  | (20) |  |
Deferred compensation expense | 4 |  |  | 6 |  |  | 3 |  |  | 9 |  |  | 3 |  |  | (2) |  |  | (33) |  |  | 1 |  |  | 27 |  |
Total personnel expense | 296 |  |  | 306 |  |  | 318 |  |  | 319 |  |  | 329 |  |  | (10) |  |  | (3) |  |  | (33) |  |  | (10) |  |
Occupancy and equipment 3 | 75 |  |  | 75 |  |  | 76 |  |  | 76 |  |  | 77 |  |  | — |  |  | — |  |  | (2) |  |  | (2) |  |
Outside services | 89 |  |  | 63 |  |  | 58 |  |  | 59 |  |  | 78 |  |  | 26 |  |  | 41 |  |  | 11 |  |  | 15 |  |
Amortization of intangible assets | 14 |  |  | 14 |  |  | 14 |  |  | 15 |  |  | 15 |  |  | — |  |  | — |  |  | (1) |  |  | (4) |  |
Other noninterest expense | 52 |  |  | 40 |  |  | 78 |  |  | 39 |  |  | 89 |  |  | 12 |  |  | 30 |  |  | (37) |  |  | (41) |  |
Total noninterest expense | 526 |  |  | 497 |  |  | 544 |  |  | 508 |  |  | 587 |  |  | 29 |  |  | 6 |  |  | (61) |  |  | (10) |  |
Pre-provision net revenue 4 | 213 |  |  | 284 |  |  | 262 |  |  | 302 |  |  | 768 |  |  | (71) |  |  | (25) |  |  | (555) |  |  | (72) |  |
Provision for credit losses 5 | (85) |  |  | (115) |  |  | (45) |  |  | 1 |  |  | 227 |  |  | 30 |  |  | 26 |  |  | (312) |  |  | (137) |  |
Income before income taxes | 298 |  |  | 399 |  |  | 307 |  |  | 301 |  |  | 541 |  |  | (101) |  |  | (25) |  |  | (243) |  |  | (45) |  |
Provision for income taxes | 63 |  |  | 88 |  |  | 71 |  |  | 56 |  |  | 2 |  |  | (25) |  |  | (28) |  |  | 61 |  |  | NM |
Net income | 235 |  |  | 311 |  |  | 235 |  |  | 245 |  |  | 539 |  |  | (76) |  |  | (24) |  |  | (304) |  |  | (56) |  |
Net income attributable to noncontrolling interest | 3 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 1 |  |
Net income attributable to controlling interest | 232 |  |  | 308 |  |  | 233 |  |  | 242 |  |  | 536 |  |  | (76) |  |  | (25) |  |  | (304) |  |  | (57) |  |
Preferred stock dividends | 8 |  |  | 13 |  |  | 8 |  |  | 8 |  |  | 13 |  |  | (5) |  |  | (38) |  |  | (5) |  |  | (37) |  |
Net income available to common shareholders | $ | 224 |  |  | $ | 295 |  |  | $ | 225 |  |  | $ | 234 |  |  | $ | 523 |  |  | $ | (71) |  |  | (24) | % |  | $ | (299) |  |  | (57) | % |
Common Share Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS | $ | 0.41 |  |  | $ | 0.54 |  |  | $ | 0.41 |  |  | $ | 0.42 |  |  | $ | 0.95 |  |  | $ | (0.13) |  |  | (23) | % |  | $ | (0.54) |  |  | (57) | % |
Basic shares | 546 |  |  | 550 |  |  | 552 |  |  | 553 |  |  | 550 |  |  | (4) |  |  | (1) |  |  | (4) |  |  | (1) |  |
Diluted EPS | $ | 0.41 |  |  | $ | 0.53 |  |  | $ | 0.40 |  |  | $ | 0.42 |  |  | $ | 0.95 |  |  | $ | (0.12) |  |  | (23) |  |  | $ | (0.54) |  |  | (57) |  |
Diluted shares | 550 |  |  | 556 |  |  | 557 |  |  | 556 |  |  | 551 |  |  | (6) |  |  | (1) | % |  | (1) |  |  | — | % |
Effective tax rate | 21.1 | % |  | 22.0 | % |  | 23.2 | % |  | 18.7 | % |  | 0.4 | % |  |  |  |  |  |  |  |  |

Numbers may not foot due to rounding. See footnote disclosures on page 20.
7

ADJUSTED 5 FINANCIAL DATA - SEE NOTABLE ITEMS ON PAGE 9
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 3Q21 Change vs.
($s in millions, except per share data) | 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q21 |  | 3Q20 |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Net interest income (FTE)1 | $ | 495 |  |  | $ | 500 |  |  | $ | 511 |  |  | $ | 525 |  |  | $ | 535 |  |  | $ | (5) |  |  | (1) | % |  | $ | (40) |  |  | (7) | % |
Adjusted noninterest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income | 96 |  |  | 102 |  |  | 126 |  |  | 104 |  |  | 111 |  |  | (6) |  |  | (6) |  |  | (15) |  |  | (13) |  |
Mortgage banking and title | 34 |  |  | 38 |  |  | 53 |  |  | 57 |  |  | 66 |  |  | (4) |  |  | (11) |  |  | (32) |  |  | (48) |  |
Brokerage, trust, and insurance | 37 |  |  | 35 |  |  | 33 |  |  | 31 |  |  | 30 |  |  | 2 |  |  | 6 |  |  | 7 |  |  | 23 |  |
Service charges and fees | 56 |  |  | 54 |  |  | 53 |  |  | 53 |  |  | 50 |  |  | 2 |  |  | 4 |  |  | 6 |  |  | 12 |  |
Card and digital banking fees | 21 |  |  | 21 |  |  | 17 |  |  | 18 |  |  | 17 |  |  | — |  |  | — |  |  | 4 |  |  | 24 |  |
Deferred compensation income | 3 |  |  | 7 |  |  | 3 |  |  | 9 |  |  | 4 |  |  | (4) |  |  | (57) |  |  | (1) |  |  | (22) |  |
Adjusted other noninterest income | 21 |  |  | 29 |  |  | 14 |  |  | 15 |  |  | 14 |  |  | (8) |  |  | (28) |  |  | 7 |  |  | 50 |  |
Adjusted total noninterest income | $ | 268 |  |  | $ | 287 |  |  | $ | 297 |  |  | $ | 288 |  |  | $ | 291 |  |  | $ | (19) |  |  | (7) | % |  | $ | (23) |  |  | (8) | % |
Total revenue (FTE)1 | $ | 763 |  |  | $ | 787 |  |  | $ | 808 |  |  | $ | 813 |  |  | $ | 826 |  |  | $ | (24) |  |  | (3) | % |  | $ | (63) |  |  | (8) | % |
Adjusted noninterest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted personnel expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted salaries and benefits | $ | 191 |  |  | $ | 191 |  |  | $ | 195 |  |  | $ | 200 |  |  | $ | 200 |  |  | $ | — |  |  | — | % |  | $ | (9) |  |  | (5) | % |
Adjusted Incentives and commissions | 92 |  |  | 93 |  |  | 99 |  |  | 89 |  |  | 91 |  |  | (1) |  |  | (1) | % |  | 1 |  |  | 1 |  |
Deferred compensation expense | 4 |  |  | 6 |  |  | 3 |  |  | 9 |  |  | 3 |  |  | (2) |  |  | (33) | % |  | 1 |  |  | 33 |  |
Adjusted total personnel expense | 286 |  |  | 290 |  |  | 297 |  |  | 298 |  |  | 294 |  |  | (4) |  |  | (1) | % |  | (8) |  |  | (3) |  |
Adjusted occupancy and equipment 3 | 74 |  |  | 75 |  |  | 72 |  |  | 74 |  |  | 73 |  |  | (1) |  |  | (1) | % |  | 1 |  |  | 1 |  |
Adjusted outside services | 65 |  |  | 56 |  |  | 54 |  |  | 52 |  |  | 46 |  |  | 9 |  |  | 16 | % |  | 19 |  |  | 41 |  |
Adjusted amortization of intangible assets | 13 |  |  | 13 |  |  | 13 |  |  | 14 |  |  | 14 |  |  | — |  |  | — | % |  | (1) |  |  | (7) |  |
Adjusted other noninterest expense | 42 |  |  | 31 |  |  | 28 |  |  | 35 |  |  | 45 |  |  | 11 |  |  | 35 | % |  | (3) |  |  | (7) |  |
Adjusted total noninterest expense | $ | 480 |  |  | $ | 465 |  |  | $ | 464 |  |  | $ | 474 |  |  | $ | 471 |  |  | $ | 15 |  |  | 3 | % |  | $ | 9 |  |  | 2 | % |
Adjusted pre-provision net revenue 4 | $ | 284 |  |  | $ | 321 |  |  | $ | 343 |  |  | $ | 339 |  |  | $ | 355 |  |  | $ | (37) |  |  | (12) | % |  | $ | (71) |  |  | (20) | % |
Adjusted provision for credit losses 5 | $ | (85) |  |  | $ | (115) |  |  | $ | (45) |  |  | $ | 1 |  |  | $ | 80 |  |  | $ | 30 |  |  | 26 | % |  | $ | (165) |  |  | NM |
Adjusted net income available to common shareholders | $ | 275 |  |  | $ | 321 |  |  | $ | 284 |  |  | $ | 255 |  |  | $ | 193 |  |  | $ | (46) |  |  | (14) | % |  | $ | 82 |  |  | 42 | % |
Adjusted Common Share Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted diluted EPS | $ | 0.50 |  |  | $ | 0.58 |  |  | $ | 0.51 |  |  | $ | 0.46 |  |  | $ | 0.35 |  |  | $ | (0.08) |  |  | (14) | % |  | $ | 0.15 |  |  | 43 | % |
Diluted shares | 550 |  |  | 556 |  |  | 557 |  |  | 556 |  |  | 551 |  |  | (6) |  |  | (1) | % |  | (1) |  |  | — | % |
Adjusted effective tax rate | 21.8 | % |  | 22.2 | % |  | 23.4 | % |  | 20.7 | % |  | 23.3 | % |  |  |  |  |  |  |  |  |
Adjusted ROTCE | 18.4 | % |  | 22.2 | % |  | 20.2 | % |  | 18.2 | % |  | 13.9 | % |  |  |  |  |  |  |  |  |
Adjusted efficiency ratio | 62.9 | % |  | 59.2 | % |  | 57.5 | % |  | 58.3 | % |  | 57.1 | % |  |  |  |  |  |  |  |  |

Numbers may not foot due to rounding.
See footnote disclosures on page 20.
8

NOTABLE ITEMS
Quarterly, Unaudited

(In millions) | 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |
Summary of Notable Items: |  |  |  |  |  |  |  |  |  |
Purchase accounting gain (other noninterest income)* | $ | — |  |  | $ | (2) |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 532 |  |
Gain/(loss) on TRUPS redemption (other noninterest income) | (23) |  |  | — |  |  | — |  |  | — |  |  | — |  |
Branch sale gain (other noninterest income) | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |
Merger/acquisition expense** | (46) |  |  | (32) |  |  | (70) |  |  | (34) |  |  | (101) |  |
Charitable contributions | — |  |  | — |  |  | — |  |  | — |  |  | (15) |  |
Other notable expenses | — |  |  | — |  |  | (10) |  |  | — |  |  | — |  |
Merger/acquisition non-PCD provision expense | — |  |  | — |  |  | — |  |  | — |  |  | (147) |  |
Total notable items | $ | (68) |  |  | $ | (34) |  |  | $ | (79) |  |  | $ | (33) |  |  | $ | 269 |  |
EPS impact of notable items | $ | (0.09) |  |  | $ | (0.05) |  |  | $ | (0.11) |  |  | $ | (0.04) |  |  | $ | 0.60 |  |

Numbers may not foot due to rounding
*' Purchase accounting gain is non-taxable income.
** 3Q20 includes $20 million of charitable contributions to establish the First Horizon Louisiana Foundation.

IMPACT OF NOTABLE ITEMS:
Quarterly, Unaudited

(In millions) | 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |
Impacts of Notable Items: |  |  |  |  |  |  |  |  |  |
Noninterest income: |  |  |  |  |  |  |  |  |  |
Other noninterest income | $ | 22 |  |  | $ | 2 |  |  | $ | (1) |  |  | $ | (1) |  |  | $ | (532) |  |
Total noninterest income | $ | 22 |  |  | $ | 2 |  |  | $ | (1) |  |  | $ | (1) |  |  | $ | (532) |  |
Noninterest expense: |  |  |  |  |  |  |  |  |  |
Personnel expenses: |  |  |  |  |  |  |  |  |  |
Salaries and benefits | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1) |  |
Incentives and commissions | (10) |  |  | (16) |  |  | (21) |  |  | (21) |  |  | (34) |  |
Deferred compensation expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
Total personnel expenses | (10) |  |  | (16) |  |  | (21) |  |  | (21) |  |  | (35) |  |
Occupancy and equipment 3 | (1) |  |  | — |  |  | (4) |  |  | (2) |  |  | (4) |  |
Outside services | (24) |  |  | (6) |  |  | (4) |  |  | (7) |  |  | (32) |  |
Amortization of intangible assets | (1) |  |  | (1) |  |  | (1) |  |  | (1) |  |  | (1) |  |
Other noninterest expense | (10) |  |  | (9) |  |  | (50) |  |  | (4) |  |  | (44) |  |
Total noninterest expense | $ | (46) |  |  | $ | (32) |  |  | $ | (80) |  |  | $ | (34) |  |  | $ | (116) |  |
Provision for credit losses | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (147) |  |
Income before income taxes | $ | 68 |  |  | $ | 34 |  |  | $ | 79 |  |  | $ | 33 |  |  | $ | (269) |  |
Provision for income taxes | 17 |  |  | 8 |  |  | 19 |  |  | 13 |  |  | 61 |  |
Net income/(loss) available to common shareholders | $ | 51 |  |  | $ | 26 |  |  | $ | 60 |  |  | $ | 20 |  |  | $ | (331) |  |

Numbers may not foot due to rounding

9

FINANCIAL RATIOS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | 3Q21 change vs. |
| 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q21 | 3Q20 |
FINANCIAL RATIOS |  |  |  |  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |
Net interest margin | 2.40 | % |  | 2.47 | % |  | 2.63 | % |  | 2.71 | % |  | 2.84 | % |  | (7) | bp |  |  |  | (44) | bp |  |  |
Return on average assets | 1.05 | % |  | 1.42 | % |  | 1.12 | % |  | 1.16 | % |  | 2.63 | % |  | (37) |  |  |  |  | (158) |  |  |  |
Adjusted return on average assets 6 | 1.28 | % |  | 1.54 | % |  | 1.40 | % |  | 1.26 | % |  | 1.01 | % |  | (26) |  |  |  |  | 27 |  |  |  |
Return on average common equity (“ROCE”) | 11.43 | % |  | 15.45 | % |  | 12.01 | % |  | 12.53 | % |  | 28.49 | % |  | (402) |  |  |  |  | (1,706) |  |  |  |
Return on average tangible common equity (“ROTCE”)6 | 14.95 | % |  | 20.36 | % |  | 15.90 | % |  | 16.73 | % |  | 37.75 | % |  | (541) |  |  |  |  | (2,280) |  |  |  |
Adjusted ROTCE 5 | 18.36 | % |  | 22.18 | % |  | 20.15 | % |  | 18.18 | % |  | 13.90 | % |  | (382) |  |  |  |  | 446 |  |  |  |
Noninterest income as a % of total revenue | 33.39 | % |  | 36.43 | % |  | 37.00 | % |  | 35.61 | % |  | 60.72 | % |  | (304) |  |  |  |  | (2,733) |  |  |  |
Adjusted noninterest income as a % of total revenue 6 | 35.14 | % |  | 36.49 | % |  | 36.78 | % |  | 35.42 | % |  | 35.20 | % |  | (135) |  |  |  |  | (6) |  |  |  |
Efficiency ratio | 71.21 | % |  | 63.67 | % |  | 67.53 | % |  | 62.71 | % |  | 43.31 | % |  | 754 |  |  |  |  | 2,790 |  |  |  |
Adjusted efficiency ratio 6 | 62.87 | % |  | 59.17 | % |  | 57.49 | % |  | 58.34 | % |  | 57.06 | % |  | 370 |  |  |  |  | 581 |  |  |  |
CAPITAL DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CET1 capital ratio* | 10.1 | % |  | 10.3 | % |  | 10.0 | % |  | 9.7 | % |  | 9.2 | % |  | (20) | bp |  |  |  | 87 | bp |  |  |
Tier 1 capital ratio* | 11.2 | % |  | 11.4 | % |  | 11.0 | % |  | 10.7 | % |  | 10.3 | % |  | (22) | bp |  |  |  | 97 | bp |  |  |
Total capital ratio* | 12.6 | % |  | 13.1 | % |  | 12.8 | % |  | 12.6 | % |  | 12.1 | % |  | (52) | bp |  |  |  | 57 | bp |  |  |
Tier 1 leverage ratio* | 8.1 | % |  | 8.2 | % |  | 8.2 | % |  | 8.2 | % |  | 8.3 | % |  | (10) | bp |  |  |  | (12) | bp |  |  |
Risk-weighted assets (“RWA”) (billions) | $ | 63.0 |  |  | $ | 62.0 |  |  | $ | 62.3 |  |  | $ | 63.1 |  |  | $ | 64.5 |  |  | $ | 1 |  |  | 2 | % |  | $ | (1) |  |  | (2) | % |
Total equity to total assets | 9.64 | % |  | 9.74 | % |  | 9.49 | % |  | 9.86 | % |  | 9.81 | % |  | (10) | bp |  |  |  | (17) | bp |  |  |
Tangible common equity/tangible assets (“TCE/TA”)6 | 6.80 | % |  | 6.87 | % |  | 6.64 | % |  | 6.89 | % |  | 6.78 | % |  | (7) | bp |  |  |  | 2 | bp |  |  |
Period-end shares outstanding (millions) | 542 |  |  | 551 |  |  | 552 |  |  | 555 |  |  | 555 |  |  | (9) |  |  | (2) |  |  | (13) |  |  | (2) | % |
Cash dividends declared per common share | $ | 0.15 |  |  | $ | 0.15 |  |  | $ | 0.15 |  |  | $ | 0.15 |  |  | $ | 0.15 |  |  | $ | — |  |  | — |  |  | $ | — |  |  | — |  |
Book value per common share | $ | 14.24 |  |  | $ | 14.07 |  |  | $ | 13.65 |  |  | $ | 13.59 |  |  | $ | 13.30 |  |  | $ | 0.17 |  |  | 1 |  |  | $ | 0.94 |  |  | 7 | % |
Tangible book value per common share 6 | $ | 10.88 |  |  | $ | 10.74 |  |  | $ | 10.30 |  |  | $ | 10.23 |  |  | $ | 9.92 |  |  | $ | 0.14 |  |  | 1 | % |  | $ | 0.96 |  |  | 10 | % |
SELECTED BALANCE SHEET DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans-to-deposit ratio (period-end balances) | 74.65 | % |  | 77.36 | % |  | 80.09 | % |  | 83.21 | % |  | 87.28 | % |  | (271) | bp |  |  |  | (1,263) | bp |  |  |
Loans-to-deposit ratio (average balances) | 75.28 | % |  | 77.68 | % |  | 82.02 | % |  | 85.90 | % |  | 89.59 | % |  | (240) | bp |  |  |  | (1,431) | bp |  |  |
Full-time equivalent associates | 7,982 |  |  | 8,145 |  |  | 8,284 |  |  | 8,466 |  |  | 8,121 |  |  | (163) |  |  | (2) | % |  | (139) |  |  | (2) | % |

Certain previously reported amounts have been reclassified to agree with current presentation
*Current quarter is an estimate.
See footnote disclosures on page 20.
10

CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 3Q21 change vs.
(In millions) | 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q21 |  |  | 3Q20
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  |  | $ |  | % |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) | $ | 31,516 |  |  | $ | 32,528 |  |  | $ | 33,951 |  |  | $ | 33,103 |  |  | $ | 33,656 |  |  | $ | (1,012) |  |  | (3) | % |  |  | $ | (2,140) |  |  | (6) | % |
Commercial real estate | 12,194 |  |  | 12,292 |  |  | 12,470 |  |  | 12,275 |  |  | 12,511 |  |  | (98) |  |  | (1) |  |  |  | (317) |  |  | (3) |  |
Total Commercial | 43,710 |  |  | 44,820 |  |  | 46,421 |  |  | 45,379 |  |  | 46,167 |  |  | (1,110) |  |  | (2) |  |  |  | (2,457) |  |  | (5) |  |
Consumer real estate | 10,787 |  |  | 10,864 |  |  | 11,053 |  |  | 11,725 |  |  | 12,328 |  |  | (77) |  |  | (1) |  |  |  | (1,541) |  |  | (12) |  |
Credit card and other 7 | 938 |  |  | 1,002 |  |  | 1,126 |  |  | 1,128 |  |  | 1,212 |  |  | (64) |  |  | (6) |  |  |  | (274) |  |  | (23) |  |
Total Consumer | 11,725 |  |  | 11,867 |  |  | 12,178 |  |  | 12,853 |  |  | 13,540 |  |  | (141) |  |  | (1) |  |  |  | (1,815) |  |  | (13) |  |
Loans and leases, net of unearned income | 55,435 |  |  | 56,687 |  |  | 58,600 |  |  | 58,232 |  |  | 59,707 |  |  | (1,251) |  |  | (2) |  |  |  | (4,271) |  |  | (7) |  |
Loans held for sale | 1,052 |  |  | 977 |  |  | 811 |  |  | 1,022 |  |  | 1,051 |  |  | 74 |  |  | 8 |  |  |  | 1 |  |  | — |  |
Investment securities | 8,798 |  |  | 8,398 |  |  | 8,361 |  |  | 8,057 |  |  | 8,006 |  |  | 401 |  |  | 5 |  |  |  | 792 |  |  | 10 |  |
Trading securities | 1,319 |  |  | 1,035 |  |  | 1,076 |  |  | 1,176 |  |  | 1,386 |  |  | 284 |  |  | 27 |  |  |  | (67) |  |  | (5) |  |
Interest-bearing deposits with banks | 14,829 |  |  | 13,451 |  |  | 11,635 |  |  | 8,351 |  |  | 5,443 |  |  | 1,378 |  |  | 10 |  |  |  | 9,386 |  |  | NM |
Federal funds sold and securities purchased under agreements to resell | 361 |  |  | 622 |  |  | 520 |  |  | 445 |  |  | 593 |  |  | (261) |  |  | (42) |  |  |  | (233) |  |  | (39) |  |
Total interest earning assets | 81,794 |  |  | 81,170 |  |  | 81,004 |  |  | 77,284 |  |  | 76,186 |  |  | 624 |  |  | 1 |  |  |  | 5,608 |  |  | 7 |  |
Cash and due from banks | 1,197 |  |  | 1,303 |  |  | 1,169 |  |  | 1,203 |  |  | 1,075 |  |  | (106) |  |  | (8) |  |  |  | 123 |  |  | 11 |  |
Goodwill and other intangible assets, net | 1,822 |  |  | 1,836 |  |  | 1,850 |  |  | 1,864 |  |  | 1,876 |  |  | (14) |  |  | (1) |  |  |  | (54) |  |  | (3) |  |
Premises and equipment, net | 692 |  |  | 714 |  |  | 719 |  |  | 759 |  |  | 756 |  |  | (22) |  |  | (3) |  |  |  | (64) |  |  | (9) |  |
Allowance for loan and lease losses | (734) |  |  | (815) |  |  | (914) |  |  | (963) |  |  | (988) |  |  | 81 |  |  | 10 |  |  |  | 254 |  |  | 26 |  |
Other assets | 3,766 |  |  | 3,700 |  |  | 3,685 |  |  | 4,063 |  |  | 4,125 |  |  | 66 |  |  | 2 |  |  |  | (359) |  |  | (9) |  |
Total assets | $ | 88,537 |  |  | $ | 87,908 |  |  | $ | 87,513 |  |  | $ | 84,209 |  |  | $ | 83,030 |  |  | $ | 629 |  |  | 1 | % |  |  | $ | 5,508 |  |  | 7 | % |
Liabilities and Shareholders' Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings | $ | 27,425 |  |  | $ | 27,416 |  |  | $ | 27,023 |  |  | $ | 27,324 |  |  | $ | 26,573 |  |  | $ | 10 |  |  | — | % |  |  | $ | 852 |  |  | 3 | % |
Time deposits | 3,920 |  |  | 4,304 |  |  | 4,653 |  |  | 5,070 |  |  | 5,526 |  |  | (383) |  |  | (9) |  |  |  | (1,606) |  |  | (29) |  |
Other interest-bearing deposits | 15,571 |  |  | 15,728 |  |  | 16,444 |  |  | 15,415 |  |  | 14,925 |  |  | (157) |  |  | (1) |  |  |  | 646 |  |  | 4 |  |
Total interest-bearing deposits | 46,916 |  |  | 47,447 |  |  | 48,120 |  |  | 47,810 |  |  | 47,025 |  |  | (531) |  |  | (1) |  |  |  | (108) |  |  | — |  |
Trading liabilities | 315 |  |  | 531 |  |  | 454 |  |  | 353 |  |  | 477 |  |  | (216) |  |  | (41) |  |  |  | (162) |  |  | (34) |  |
Short-term borrowings | 2,225 |  |  | 2,246 |  |  | 2,203 |  |  | 2,198 |  |  | 2,142 |  |  | (21) |  |  | (1) |  |  |  | 83 |  |  | 4 |  |
Term borrowings | 1,584 |  |  | 1,672 |  |  | 1,671 |  |  | 1,670 |  |  | 2,162 |  |  | (89) |  |  | (5) |  |  |  | (578) |  |  | (27) |  |
Total interest-bearing liabilities | 51,040 |  |  | 51,896 |  |  | 52,448 |  |  | 52,030 |  |  | 51,805 |  |  | (857) |  |  | (2) |  |  |  | (766) |  |  | (1) |  |
Noninterest-bearing deposits | 27,348 |  |  | 25,833 |  |  | 25,046 |  |  | 22,173 |  |  | 21,384 |  |  | 1,515 |  |  | 6 |  |  |  | 5,964 |  |  | 28 |  |
Other liabilities | 1,617 |  |  | 1,613 |  |  | 1,712 |  |  | 1,699 |  |  | 1,696 |  |  | 4 |  |  | — |  |  |  | (79) |  |  | (5) |  |
Total liabilities | 80,005 |  |  | 79,343 |  |  | 79,206 |  |  | 75,903 |  |  | 74,885 |  |  | 662 |  |  | 1 |  |  |  | 5,119 |  |  | 7 |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock | 520 |  |  | 520 |  |  | 470 |  |  | 470 |  |  | 470 |  |  | — |  |  | — |  |  |  | 50 |  |  | 11 |  |
Common stock | 339 |  |  | 344 |  |  | 345 |  |  | 347 |  |  | 347 |  |  | (5) |  |  | (2) |  |  |  | (8) |  |  | (2) |  |
Capital surplus | 4,866 |  |  | 4,997 |  |  | 5,036 |  |  | 5,073 |  |  | 5,061 |  |  | (131) |  |  | (3) |  |  |  | (195) |  |  | (4) |  |
Retained earnings | 2,754 |  |  | 2,613 |  |  | 2,402 |  |  | 2,261 |  |  | 2,111 |  |  | 141 |  |  | 5 |  |  |  | 643 |  |  | 30 |  |
Accumulated other comprehensive loss, net | (241) |  |  | (203) |  |  | (242) |  |  | (140) |  |  | (140) |  |  | (38) |  |  | (19) |  |  |  | (100) |  |  | (71) |  |
Combined shareholders' equity | 8,237 |  |  | 8,270 |  |  | 8,012 |  |  | 8,012 |  |  | 7,849 |  |  | (33) |  |  | — |  |  |  | 389 |  |  | 5 |  |
Noncontrolling interest | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | — |  |  | — |  |  |  | — |  |  | — |  |
Total shareholders' equity | 8,533 |  |  | 8,566 |  |  | 8,307 |  |  | 8,307 |  |  | 8,144 |  |  | (33) |  |  | — |  |  |  | 389 |  |  | 5 |  |
Total liabilities and shareholders' equity | $ | 88,537 |  |  | $ | 87,908 |  |  | $ | 87,513 |  |  | $ | 84,209 |  |  | $ | 83,030 |  |  | $ | 629 |  |  | 1 | % |  |  | $ | 5,508 |  |  | 7 | % |
Memo: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Deposits | $ | 74,265 |  |  | $ | 73,281 |  |  | $ | 73,167 |  |  | $ | 69,982 |  |  | $ | 68,409 |  |  | $ | 984 |  |  | 1 | % |  |  | $ | 5,856 |  |  | 9 | % |
Unfunded Loan Commitments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 19,019 |  |  | $ | 18,035 |  |  | $ | 16,759 |  |  | $ | 17,201 |  |  | $ | 16,555 |  |  | $ | 984 |  |  | 5 | % |  |  | $ | 2,464 |  |  | 15 | % |
Consumer | $ | 3,892 |  |  | $ | 4,031 |  |  | $ | 4,067 |  |  | $ | 4,086 |  |  | $ | 4,133 |  |  | $ | (139) |  |  | (3) | % |  |  | $ | (241) |  |  | (6) | % |

Numbers may not foot due to rounding. See footnote disclosures on page 20.
11

CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 3Q21 change vs. |
(In millions) | 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q21 |  | 3Q20 |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) | $ | 31,477 |  |  | $ | 32,540 |  |  | $ | 33,279 |  |  | $ | 34,196 |  |  | $ | 34,051 |  |  | $ | (1,063) |  |  | (3) | % |  | $ | (2,574) |  |  | (8) | % |
Commercial real estate | 12,264 |  |  | 12,350 |  |  | 12,424 |  |  | 12,400 |  |  | 12,414 |  |  | (86) |  |  | (1) |  |  | (150) |  |  | (1) |  |
Total Commercial | 43,741 |  |  | 44,890 |  |  | 45,703 |  |  | 46,596 |  |  | 46,465 |  |  | (1,149) |  |  | (3) |  |  | (2,724) |  |  | (6) |  |
Consumer real estate | 10,819 |  |  | 10,926 |  |  | 11,400 |  |  | 12,030 |  |  | 12,444 |  |  | (107) |  |  | (1) |  |  | (1,625) |  |  | (13) |  |
Credit card and other 7 | 948 |  |  | 1,013 |  |  | 1,119 |  |  | 1,194 |  |  | 1,209 |  |  | (65) |  |  | (6) |  |  | (261) |  |  | (22) |  |
Total Consumer | 11,767 |  |  | 11,939 |  |  | 12,519 |  |  | 13,224 |  |  | 13,653 |  |  | (172) |  |  | (1) |  |  | (1,886) |  |  | (14) |  |
Loans and leases, net of unearned income | 55,508 |  |  | 56,829 |  |  | 58,222 |  |  | 59,820 |  |  | 60,118 |  |  | (1,320) |  |  | (2) |  |  | (4,609) |  |  | (8) |  |
Loans held-for-sale | 992 |  |  | 734 |  |  | 842 |  |  | 1,030 |  |  | 985 |  |  | 258 |  |  | 35 |  |  | 7 |  |  | 1 |  |
Investment securities | 8,494 |  |  | 8,401 |  |  | 8,320 |  |  | 8,213 |  |  | 8,590 |  |  | 94 |  |  | 1 |  |  | (96) |  |  | (1) |  |
Trading securities | 1,171 |  |  | 1,322 |  |  | 1,418 |  |  | 1,292 |  |  | 1,194 |  |  | (151) |  |  | (11) |  |  | (23) |  |  | (2) |  |
Interest-bearing deposits with banks | 15,022 |  |  | 13,051 |  |  | 9,269 |  |  | 6,201 |  |  | 3,616 |  |  | 1,972 |  |  | 15 |  |  | 11,407 |  |  | NM |
Federal funds sold and securities purchased under agreements to resell | 587 |  |  | 648 |  |  | 599 |  |  | 440 |  |  | 500 |  |  | (61) |  |  | (9) |  |  | 88 |  |  | 18 |  |
Total interest earning assets | 81,775 |  |  | 80,984 |  |  | 78,670 |  |  | 76,995 |  |  | 75,002 |  |  | 791 |  |  | 1 |  |  | 6,773 |  |  | 9 |  |
Cash and due from banks | 1,263 |  |  | 1,267 |  |  | 1,250 |  |  | 1,204 |  |  | 1,028 |  |  | (4) |  |  | — |  |  | 235 |  |  | 23 |  |
Goodwill and other intangibles assets, net | 1,829 |  |  | 1,843 |  |  | 1,857 |  |  | 1,871 |  |  | 1,794 |  |  | (14) |  |  | (1) |  |  | 36 |  |  | 2 |  |
Premises and equipment, net | 703 |  |  | 714 |  |  | 755 |  |  | 765 |  |  | 747 |  |  | (11) |  |  | (2) |  |  | (44) |  |  | (6) |  |
Allowances for loan and lease losses | (793) |  |  | (884) |  |  | (949) |  |  | (985) |  |  | (980) |  |  | 90 |  |  | 10 |  |  | 186 |  |  | 19 |  |
Other assets | 3,624 |  |  | 3,635 |  |  | 3,817 |  |  | 3,959 |  |  | 4,093 |  |  | (11) |  |  | — |  |  | (469) |  |  | (11) |  |
Total assets | $ | 88,401 |  |  | $ | 87,559 |  |  | $ | 85,401 |  |  | $ | 83,809 |  |  | $ | 81,683 |  |  | $ | 842 |  |  | 1 | % |  | $ | 6,717 |  |  | 8 | % |
Liabilities and shareholders' equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings | $ | 27,793 |  |  | $ | 27,238 |  |  | $ | 27,370 |  |  | $ | 27,090 |  |  | $ | 25,648 |  |  | $ | 555 |  |  | 2 | % |  | $ | 2,145 |  |  | 8 | % |
Time deposits | 4,121 |  |  | 4,487 |  |  | 4,836 |  |  | 5,386 |  |  | 5,783 |  |  | (366) |  |  | (8) |  |  | (1,661) |  |  | (29) |  |
Other interest-bearing deposits | 15,333 |  |  | 16,029 |  |  | 15,491 |  |  | 15,057 |  |  | 14,771 |  |  | (696) |  |  | (4) |  |  | 562 |  |  | 4 |  |
Total interest-bearing deposits | 47,248 |  |  | 47,754 |  |  | 47,697 |  |  | 47,534 |  |  | 46,202 |  |  | (506) |  |  | (1) |  |  | 1,046 |  |  | 2 |  |
Trading liabilities | 527 |  |  | 560 |  |  | 518 |  |  | 367 |  |  | 360 |  |  | (33) |  |  | (6) |  |  | 167 |  |  | 46 |  |
Short-term borrowings | 2,452 |  |  | 2,248 |  |  | 2,280 |  |  | 2,113 |  |  | 2,469 |  |  | 205 |  |  | 9 |  |  | (16) |  |  | (1) |  |
Term borrowings | 1,665 |  |  | 1,672 |  |  | 1,670 |  |  | 1,913 |  |  | 2,172 |  |  | (7) |  |  | — |  |  | (507) |  |  | (23) |  |
Total interest-bearing liabilities | 51,892 |  |  | 52,233 |  |  | 52,164 |  |  | 51,926 |  |  | 51,202 |  |  | (341) |  |  | (1) |  |  | 689 |  |  | 1 |  |
Noninterest-bearing deposits | 26,485 |  |  | 25,404 |  |  | 23,284 |  |  | 22,105 |  |  | 20,904 |  |  | 1,082 |  |  | 4 |  |  | 5,582 |  |  | 27 |  |
Other liabilities | 1,447 |  |  | 1,463 |  |  | 1,603 |  |  | 1,568 |  |  | 1,505 |  |  | (17) |  |  | (1) |  |  | (58) |  |  | (4) |  |
Total liabilities | 79,824 |  |  | 79,100 |  |  | 77,052 |  |  | 75,600 |  |  | 73,611 |  |  | 723 |  |  | 1 |  |  | 6,213 |  |  | 8 |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock | 520 |  |  | 513 |  |  | 470 |  |  | 470 |  |  | 468 |  |  | 7 |  |  | 1 |  |  | 52 |  |  | 11 |  |
Common stock | 342 |  |  | 345 |  |  | 346 |  |  | 347 |  |  | 345 |  |  | (3) |  |  | (1) |  |  | (3) |  |  | (1) |  |
Capital surplus | 4,936 |  |  | 5,023 |  |  | 5,061 |  |  | 5,902 |  |  | 5,041 |  |  | (87) |  |  | (2) |  |  | (105) |  |  | (2) |  |
Retained earnings | 2,673 |  |  | 2,499 |  |  | 2,336 |  |  | 1,346 |  |  | 2,025 |  |  | 174 |  |  | 7 |  |  | 648 |  |  | 32 |  |
Accumulated other comprehensive loss, net | (190) |  |  | (217) |  |  | (161) |  |  | (151) |  |  | (103) |  |  | 27 |  |  | 12 |  |  | (87) |  |  | (85) |  |
Combined shareholders' equity | 8,281 |  |  | 8,164 |  |  | 8,054 |  |  | 7,914 |  |  | 7,777 |  |  | 118 |  |  | 1 |  |  | 505 |  |  | 6 |  |
Noncontrolling interest | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | — |  |  | — |  |  | — |  |  | — |  |
Total shareholders' equity | 8,577 |  |  | 8,459 |  |  | 8,349 |  |  | 8,209 |  |  | 8,072 |  |  | 118 |  |  | 1 |  |  | 505 |  |  | 6 |  |
Total liabilities and shareholders' equity | $ | 88,401 |  |  | $ | 87,559 |  |  | $ | 85,401 |  |  | $ | 83,809 |  |  | $ | 81,683 |  |  | $ | 842 |  |  | 1 | % |  | $ | 6,717 |  |  | 8 | % |
Memo: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Deposits | $ | 73,733 |  |  | $ | 73,158 |  |  | $ | 70,981 |  |  | $ | 69,639 |  |  | $ | 67,106 |  |  | $ | 575 |  |  | 1 | % |  | $ | 6,627 |  |  | 10 | % |

Numbers may not foot due to rounding. See footnote disclosures on page 20.
12

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCE SHEET: YIELDS AND RATES |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3Q21 change vs. |
| 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q21 |  | 3Q20 |
(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 | $ | 372 |  |  | 3.37 | % |  | $ | 380 |  |  | 3.39 |  |  | $ | 382 |  |  | 3.39 |  |  | $ | 406 |  |  | 3.46 |  |  | $ | 419 |  |  | 3.59 |  |  | $ | (7) |  | (2) | % |  | $ | (46) |  | (11) | % |
Consumer | 112 |  |  | 3.81 |  |  | 118 |  |  | 3.99 |  |  | 127 |  |  | 4.13 |  |  | 129 |  |  | 3.89 |  |  | 141 |  |  | 4.11 |  |  | (7) |  | (6) |  |  | (29) |  | (21) |  |
Loans and leases, net of unearned income | 484 |  |  | 3.46 |  |  | 498 |  |  | 3.52 |  |  | 510 |  |  | 3.55 |  |  | 535 |  |  | 3.56 |  |  | 560 |  |  | 3.70 |  |  | (14) |  | (3) |  |  | (75) |  | (13) |  |
Loans held-for-sale | 8 |  |  | 3.25 |  |  | 7 |  |  | 3.94 |  |  | 7 |  |  | 3.16 |  |  | 8 |  |  | 3.22 |  |  | 8 |  |  | 3.36 |  |  | 1 |  | 11 |  |  | — |  | 1 |  |
Investment securities | 31 |  |  | 1.48 |  |  | 29 |  |  | 1.39 |  |  | 28 |  |  | 1.41 |  |  | 27 |  |  | 1.29 |  |  | 25 |  |  | 1.21 |  |  | 2 |  | 8 |  |  | 6 |  | 24 |  |
Trading securities | 6 |  |  | 2.07 |  |  | 7 |  |  | 2.03 |  |  | 7 |  |  | 2.03 |  |  | 7 |  |  | 2.05 |  |  | 6 |  |  | 2.08 |  |  | (1) |  | (10) |  |  | — |  | 1 |  |
Interest-bearing deposits with banks | 6 |  |  | 0.16 |  |  | 3 |  |  | 0.10 |  |  | 2 |  |  | 0.10 |  |  | 2 |  |  | 0.10 |  |  | 1 |  |  | 0.09 |  |  | 3 |  | 90 |  |  | 5 |  | NM |
Federal funds sold and securities purchased under agreements | — |  |  | (0.03) |  |  | — |  |  | (0.06) |  |  | — |  |  | (0.12) |  |  | — |  |  | 0.03 |  |  | — |  |  | 0.04 |  |  | — |  | 48 |  |  | — |  | NM |
Interest income | $ | 536 |  |  | 2.60 |  |  | $ | 545 |  |  | 2.70 |  |  | $ | 555 |  |  | 2.86 |  |  | $ | 578 |  |  | 2.99 |  |  | $ | 601 |  |  | 3.19 |  |  | $ | (9) |  | (2) | % |  | $ | (65) |  | (11) | % |
Interest bearing liabilities/Interest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings | $ | 9 |  |  | 0.12 |  |  | $ | 11 |  |  | 0.16 |  |  | $ | 13 |  |  | 0.19 |  |  | $ | 18 |  |  | 0.27 |  |  | $ | 25 |  |  | 0.38 |  |  | $ | (2) |  | (20) | % |  | $ | (16) |  | (66) | % |
Time deposits | 6 |  |  | 0.62 |  |  | 7 |  |  | 0.65 |  |  | 6 |  |  | 0.47 |  |  | 6 |  |  | 0.44 |  |  | 10 |  |  | 0.70 |  |  | (1) |  | (11) |  |  | (4) |  | (35) |  |
Other interest-bearing deposits | 5 |  |  | 0.12 |  |  | 6 |  |  | 0.15 |  |  | 6 |  |  | 0.16 |  |  | 7 |  |  | 0.18 |  |  | 7 |  |  | 0.20 |  |  | (1) |  | (20) |  |  | (2) |  | (33) |  |
Total interest-bearing deposits | 20 |  |  | 0.17 |  |  | 24 |  |  | 0.20 |  |  | 24 |  |  | 0.20 |  |  | 31 |  |  | 0.26 |  |  | 42 |  |  | 0.36 |  |  | (4) |  | (17) |  |  | (22) |  | (53) |  |
Trading liabilities | 1 |  |  | 1.11 |  |  | 2 |  |  | 1.17 |  |  | 1 |  |  | 0.73 |  |  | 1 |  |  | 0.78 |  |  | 1 |  |  | 0.77 |  |  | — |  | (10) |  |  | 1 |  | 111 |  |
Short-term borrowings | 1 |  |  | 0.24 |  |  | 1 |  |  | 0.22 |  |  | 1 |  |  | 0.21 |  |  | 1 |  |  | 0.23 |  |  | 1 |  |  | 0.20 |  |  | — |  | 19 |  |  | — |  | 48 |  |
Term borrowings | 18 |  |  | 4.39 |  |  | 18 |  |  | 4.38 |  |  | 18 |  |  | 4.39 |  |  | 20 |  |  | 4.16 |  |  | 22 |  |  | 3.98 |  |  | — |  | — |  |  | (4) |  | (17) |  |
Interest expense | 41 |  |  | 0.31 |  |  | 45 |  |  | 0.34 |  |  | 45 |  |  | 0.34 |  |  | 53 |  |  | 0.40 |  |  | 66 |  |  | 0.51 |  |  | (4) |  | (9) |  |  | (25) |  | (38) |  |
Net interest income - tax equivalent basis | 495 |  |  | 2.29 |  |  | 500 |  |  | 2.36 |  |  | 511 |  |  | 2.52 |  |  | 525 |  |  | 2.59 |  |  | 535 |  |  | 2.68 |  |  | (5) |  | (1) |  |  | (40) |  | (8) |  |
Fully taxable equivalent adjustment | (3) |  |  | 0.11 |  |  | (3) |  |  | 0.11 |  |  | (3) |  |  | 0.11 |  |  | (3) |  |  | 0.12 |  |  | (3) |  |  | 0.16 |  |  | — |  | 3 |  |  | — |  | 2 |  |
Net interest income | $ | 492 |  |  | 2.40 |  |  | $ | 497 |  |  | 2.47 |  |  | $ | 508 |  |  | 2.63 |  |  | $ | 522 |  |  | 2.71 |  |  | $ | 532 |  |  | 2.84 |  |  | $ | (5) |  | (1) | % |  | $ | (40) |  | (8) | % |
Memo: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total loan yield |  |  | 3.46 | % |  |  |  | 3.52 | % |  |  |  | 3.55 | % |  |  |  | 3.56 | % |  |  |  | 3.70 | % |  |  |  |  |  |  |
Total deposit cost |  |  | 0.11 | % |  |  |  | 0.13 | % |  |  |  | 0.14 | % |  |  |  | 0.18 | % |  |  |  | 0.25 | % |  |  |  |  |  |  |
Total funding cost |  |  | 0.21 | % |  |  |  | 0.23 | % |  |  |  | 0.24 | % |  |  |  | 0.28 | % |  |  |  | 0.36 | % |  |  |  |  |  |  |

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.
See footnote disclosures on page 20.
13

CONSOLIDATED NONPERFORMING LOANS AND LEASES ("NPL") |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of |  | 3Q21 change vs. |
(In millions, except ratio data) |  | 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q21 |  | 3Q20 |
|  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Nonperforming loans and leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | 144 |  |  | $ | 122 |  |  | $ | 144 |  |  | $ | 144 |  |  | $ | 213 |  |  | $ | 21 |  |  | 17 | % |  | $ | (69) |  |  | (32) | % |
Commercial real estate |  | 58 |  |  | 70 |  |  | 67 |  |  | 58 |  |  | 51 |  |  | (12) |  |  | (17) |  |  | 7 |  |  | 14 |  |
Consumer real estate |  | 143 |  |  | 149 |  |  | 180 |  |  | 182 |  |  | 180 |  |  | (6) |  |  | (4) |  |  | (37) |  |  | (21) |  |
Credit card and other |  | 2 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 3 |  |  | — |  |  | (13) |  |  | (1) |  |  | (28) |  |
Total nonperforming loans and leases |  | $ | 347 |  |  | $ | 344 |  |  | $ | 394 |  |  | $ | 386 |  |  | $ | 447 |  |  | $ | 4 |  |  | 1 | % |  | $ | (100) |  |  | (22) | % |
Asset Quality Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonperforming loans and leases to loans and leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 0.46 | % |  | 0.38 | % |  | 0.42 | % |  | 0.43 | % |  | 0.63 | % |  |  |  |  |  |  |  |  |
Commercial real estate |  | 0.48 |  |  | 0.57 |  |  | 0.54 |  |  | 0.48 |  |  | 0.41 |  |  |  |  |  |  |  |  |  |
Consumer real estate |  | 1.33 |  |  | 1.37 |  |  | 1.63 |  |  | 1.56 |  |  | 1.46 |  |  |  |  |  |  |  |  |  |
Credit card and other |  | 0.22 |  |  | 0.24 |  |  | 0.22 |  |  | 0.18 |  |  | 0.24 |  |  |  |  |  |  |  |  |  |
Total nonperforming loans and leases to loans and leases |  | 0.63 | % |  | 0.61 | % |  | 0.67 | % |  | 0.66 | % |  | 0.75 | % |  |  |  |  |  |  |  |  |

Numbers may not foot due to rounding.

CONSOLIDATED LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of |  | 3Q21 change vs. |
(In millions) |  | 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q21 |  | 3Q20 |
|  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Loans and leases 90 days or more past due and accruing |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | 1 |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | (16) | % |  | $ | 1 |  |  | NM |
Commercial real estate |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | NM |  | 2 |  |  | NM |
Consumer real estate |  | 12 |  |  | 12 |  |  | 12 |  |  | 15 |  |  | 14 |  |  | — |  |  | 2 |  |  | (2) |  |  | (12) |  |
Credit card and other |  | 2 |  |  | 1 |  |  | — |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 53 |  |  | 1 |  |  | 77 |  |
Total loans and leases 90 days or more past due and accruing |  | $ | 16 |  |  | $ | 14 |  |  | $ | 13 |  |  | $ | 16 |  |  | $ | 15 |  |  | $ | 2 |  |  | 15 | % |  | $ | 2 |  |  | 11 | % |

Numbers may not foot due to rounding.
14

CONSOLIDATED NET CHARGE-OFFS (RECOVERIES)
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of |  | 3Q21 change vs. |
(In millions, except ratio data) |  | 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q21 |  | 3Q20 |
Charge-off, Recoveries and Related Ratios |  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Gross Charge-offs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | 12 |  |  | $ | 2 |  |  | $ | 15 |  |  | $ | 35 |  |  | $ | 69 |  |  | $ | 10 |  |  | NM |  | $ | (58) |  |  | (83) | % |
Commercial real estate |  | 2 |  |  | — |  |  | 3 |  |  | — |  |  | 4 |  |  | 2 |  |  | NM |  | (1) |  |  | (32) |  |
Consumer real estate |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 2 |  |  | — |  |  | 6 |  |  | (1) |  |  | (60) |  |
Credit card and other |  | 5 |  |  | 3 |  |  | 3 |  |  | 4 |  |  | 4 |  |  | 1 |  |  | 42 |  |  | 1 |  |  | 29 |  |
Total gross charge-offs |  | $ | 19 |  |  | $ | 6 |  |  | $ | 23 |  |  | $ | 40 |  |  | $ | 78 |  |  | $ | 13 |  |  | NM |  | $ | (59) |  |  | (75) | % |
Gross Recoveries |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | (7) |  |  | $ | (5) |  |  | $ | (6) |  |  | $ | (4) |  |  | $ | (3) |  |  | $ | (2) |  |  | (43) | % |  | $ | (4) |  |  | (109) | % |
Commercial real estate |  | (2) |  |  | (1) |  |  | (2) |  |  | (1) |  |  | (2) |  |  | (1) |  |  | NM |  | — |  |  | 7 |  |
Consumer real estate |  | (7) |  |  | (8) |  |  | (6) |  |  | (5) |  |  | (5) |  |  | 1 |  |  | 11 |  |  | (2) |  |  | (39) |  |
Credit card and other |  | — |  |  | (2) |  |  | (1) |  |  | (1) |  |  | (1) |  |  | 2 |  |  | 94 |  |  | 1 |  |  | 89 |  |
Total gross recoveries |  | $ | (16) |  |  | $ | (16) |  |  | $ | (15) |  |  | $ | (12) |  |  | $ | (12) |  |  | $ | (1) |  |  | (5) | % |  | $ | (5) |  |  | (39) | % |
Net Charge-offs (Recoveries) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | 5 |  |  | $ | (3) |  |  | $ | 10 |  |  | $ | 31 |  |  | $ | 66 |  |  | $ | 8 |  |  | NM |  | $ | (61) |  |  | (93) | % |
Commercial real estate |  | — |  |  | (1) |  |  | 2 |  |  | (1) |  |  | 1 |  |  | 1 |  |  | NM |  | (1) |  |  | (74) |  |
Consumer real estate |  | (7) |  |  | (8) |  |  | (5) |  |  | (4) |  |  | (3) |  |  | 1 |  |  | 13 |  |  | (3) |  |  | (91) |  |
Credit card and other |  | 4 |  |  | 1 |  |  | 2 |  |  | 2 |  |  | 3 |  |  | 3 |  |  | NM |  | 2 |  |  | 76 |  |
Total net charge-offs |  | $ | 3 |  |  | $ | (10) |  |  | $ | 8 |  |  | $ | 29 |  |  | $ | 67 |  |  | $ | 13 |  |  | 130 | % |  | $ | (64) |  |  | (96) | % |
Annualized Net Charge-off (Recovery) Rates |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 0.06 | % |  | (0.04) | % |  | 0.12 | % |  | 0.36 | % |  | 0.77 | % |  |  |  |  |  |  |  |  |
Commercial real estate |  | 0.01 |  |  | (0.02) |  |  | 0.06 |  |  | (0.02) |  |  | 0.04 |  |  |  |  |  |  |  |  |  |
Consumer real estate |  | (0.24) |  |  | (0.28) |  |  | (0.18) |  |  | (0.12) |  |  | (0.11) |  |  |  |  |  |  |  |  |  |
Credit card and other |  | 1.86 |  |  | 0.51 |  |  | 0.65 |  |  | 0.68 |  |  | 0.83 |  |  |  |  |  |  |  |  |  |
Total loans and leases |  | 0.02 | % |  | (0.07) | % |  | 0.06 | % |  | 0.19 | % |  | 0.44 | % |  |  |  |  |  |  |  |  |

Numbers may not foot due to rounding.
15

CONSOLIDATED ALLOWANCE FOR LOAN AND LEASE LOSSES AND RESERVE FOR UNFUNDED COMMITMENTS |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of |  | 3Q21 Change vs. |
(In millions) |  | 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q21 |  | 3Q20 |
Summary of Changes in the Components of the Allowance For Credit Losses |  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Allowance for loan and lease losses - beginning |  | $ | 815 |  |  | $ | 914 |  |  | $ | 963 |  |  | $ | 988 |  |  | $ | 538 |  |  | $ | (99) |  |  | (11) | % |  | $ | 277 |  |  | 52 | % |
Acquired purchased credit deteriorated allowance for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | — |  |  | — |  |  | — |  |  | — |  |  | 138 |  |  | — |  |  | NM |  | $ | (138) |  |  | (100) |  |
Commercial real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | 100 |  |  | — |  |  | NM |  | (100) |  |  | (100) |  |
Consumer real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | 44 |  |  | — |  |  | NM |  | (44) |  |  | (100) |  |
Credit card and other |  | — |  |  | — |  |  | — |  |  | — |  |  | 5 |  |  | — |  |  | NM |  | (5) |  |  | (100) |  |
Total acquired purchased credit deteriorated allowance for loan and lease losses |  | — |  |  | — |  |  | — |  |  | — |  |  | 287 |  |  | — |  |  | NM |  | (287) |  |  | (100) |  |
Charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | (12) |  |  | (2) |  |  | (15) |  |  | (35) |  |  | (69) |  |  | (10) |  |  | NM |  | 58 |  |  | 83 |  |
Commercial real estate |  | (2) |  |  | — |  |  | (3) |  |  | — |  |  | (4) |  |  | (2) |  |  | NM |  | 1 |  |  | 32 |  |
Consumer real estate |  | (1) |  |  | (1) |  |  | (1) |  |  | (1) |  |  | (2) |  |  | — |  |  | (6) |  |  | 1 |  |  | 60 |  |
Credit card and other |  | (5) |  |  | (3) |  |  | (3) |  |  | (4) |  |  | (4) |  |  | (1) |  |  | (42) |  |  | (1) |  |  | (29) |  |
Total charge-offs |  | (19) |  |  | (6) |  |  | (23) |  |  | (40) |  |  | (78) |  |  | (13) |  |  | NM |  | 59 |  |  | 75 |  |
Recoveries: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 7 |  |  | 5 |  |  | 6 |  |  | 4 |  |  | 3 |  |  | 2 |  |  | 43 |  |  | 4 |  |  | 109 |  |
Commercial real estate |  | 2 |  |  | 1 |  |  | 2 |  |  | 1 |  |  | 2 |  |  | 1 |  |  | NM |  | — |  |  | (7) |  |
Consumer real estate |  | 7 |  |  | 8 |  |  | 6 |  |  | 5 |  |  | 5 |  |  | (1) |  |  | (11) |  |  | 2 |  |  | 39 |  |
Credit card and other |  | — |  |  | 2 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | (2) |  |  | (94) |  |  | (1) |  |  | (89) |  |
Total Recoveries |  | 16 |  |  | 16 |  |  | 15 |  |  | 12 |  |  | 12 |  |  | 1 |  |  | 5 |  |  | 5 |  |  | 39 |  |
Provision for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I)* |  | (5) |  |  | (60) |  |  | (1) |  |  | (5) |  |  | 99 |  |  | 55 |  |  | 91 |  |  | (104) |  |  | (105) |  |
Commercial real estate* |  | (48) |  |  | (22) |  |  | (8) |  |  | 34 |  |  | 52 |  |  | (26) |  |  | (114) |  |  | (100) |  |  | NM |
Consumer real estate* |  | (31) |  |  | (26) |  |  | (26) |  |  | (27) |  |  | 74 |  |  | (5) |  |  | (17) |  |  | (105) |  |  | (142) |  |
Credit card and other* |  | 6 |  |  | — |  |  | (6) |  |  | 3 |  |  | 5 |  |  | 6 |  |  | NM |  | 1 |  |  | 23 |  |
Total provision for loan and lease losses*: |  | (78) |  |  | (109) |  |  | (41) |  |  | 4 |  |  | 230 |  |  | 31 |  |  | 28 |  |  | (308) |  |  | (134) |  |
Allowance for loan and lease losses - ending |  | $ | 734 |  |  | $ | 815 |  |  | $ | 914 |  |  | $ | 963 |  |  | $ | 988 |  |  | $ | (81) |  |  | (10) | % |  | $ | (254) |  |  | (26) | % |
Reserve for unfunded commitments - beginning |  | $ | 75 |  |  | $ | 81 |  |  | $ | 85 |  |  | $ | 89 |  |  | $ | 50 |  |  | $ | (6) |  |  | (7) | % |  | $ | 24 |  |  | 48 | % |
Cumulative effect of change in accounting principle |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Acquired reserve for unfunded commitments |  | — |  |  | — |  |  | — |  |  | (1) |  |  | 41 |  |  | — |  |  | NM |  | (41) |  |  | (100) |  |
Provision for unfunded commitments |  | (7) |  |  | (6) |  |  | (4) |  |  | (3) |  |  | (3) |  |  | (1) |  |  | (17) |  |  | (4) |  |  | (133) |  |
Reserve for unfunded commitments - ending |  | $ | 68 |  |  | $ | 75 |  |  | $ | 81 |  |  | $ | 85 |  |  | $ | 89 |  |  | $ | (7) |  |  | (9) |  |  | $ | (21) |  |  | (24) |  |
Total allowance for credit losses- ending |  | $ | 802 |  |  | $ | 890 |  |  | $ | 995 |  |  | $ | 1,048 |  |  | $ | 1,077 |  |  | $ | (88) |  |  | (10) | % |  | $ | (275) |  |  | (26) | % |

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.
16

CONSOLIDATED ASSET QUALITY RATIOS - ALLOWANCE FOR LOAN AND LEASE LOSSES |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |
|  | As of |
|  | 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |
Allowance for loans and lease losses to loans and leases |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 1.19 | % |  | 1.18 | % |  | 1.30 | % |  | 1.37 | % |  | 1.45 | % |
Commercial real estate |  | 1.33 | % |  | 1.71 | % |  | 1.86 | % |  | 1.97 | % |  | 1.66 | % |
Consumer real estate |  | 1.65 | % |  | 1.87 | % |  | 2.00 | % |  | 2.07 | % |  | 2.15 | % |
Credit card and other |  | 2.03 | % |  | 1.71 | % |  | 1.63 | % |  | 2.34 | % |  | 2.11 | % |
Total allowance for loans and lease losses to loans and leases |  | 1.32 | % |  | 1.44 | % |  | 1.56 | % |  | 1.65 | % |  | 1.65 | % |
Allowance for loans and lease losses to nonperforming loans and leases |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 261 | % |  | 314 | % |  | 307 | % |  | 315 | % |  | 230 | % |
Commercial real estate |  | 278 | % |  | 300 | % |  | 345 | % |  | 415 | % |  | 407 | % |
Consumer real estate |  | 125 | % |  | 136 | % |  | 123 | % |  | 133 | % |  | 147 | % |
Credit card and other |  | 926 | % |  | 725 | % |  | 749 | % |  | 1,313 | % |  | 890 | % |
Total allowance for loans and lease losses to nonperforming loans and leases |  | 211 | % |  | 237 | % |  | 232 | % |  | 249 | % |  | 221 | % |

17

REGIONAL BANKING
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 3Q21 Change vs. |
| 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q21 |  | 3Q20 |
|  |  |  |  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |
Income Statement (millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 444 |  |  | $ | 444 |  |  | $ | 426 |  |  | $ | 430 |  |  | $ | 448 |  |  | $ | — |  |  | — | % |  | $ | (4) |  |  | (1) | % |
Noninterest income | 112 |  |  | 108 |  |  | 99 |  |  | 105 |  |  | 97 |  |  | 4 |  |  | 4 |  |  | 15 |  |  | 15 | % |
Total revenue | 556 |  |  | 552 |  |  | 525 |  |  | 535 |  |  | 545 |  |  | 4 |  |  | 1 |  |  | 11 |  |  | 2 | % |
Noninterest expense | 301 |  |  | 278 |  |  | 272 |  |  | 306 |  |  | 301 |  |  | 23 |  |  | 8 |  |  | — |  |  | — | % |
Pre-provision net revenue 4 | 255 |  |  | 274 |  |  | 254 |  |  | 229 |  |  | 245 |  |  | (19) |  |  | (7) |  |  | 10 |  |  | 4 | % |
Provision for credit losses 5 | (52) |  |  | (89) |  |  | (32) |  |  | (2) |  |  | 194 |  |  | 37 |  |  | 42 |  |  | (246) |  |  | (127) | % |
Income before income tax expense | 301 |  |  | 362 |  |  | 286 |  |  | 231 |  |  | 50 |  |  | (61) |  |  | (17) |  |  | 251 |  |  | NM |
Income tax expense | 72 |  |  | 85 |  |  | 66 |  |  | 53 |  |  | 9 |  |  | (13) |  |  | (15) |  |  | 63 |  |  | NM |
Net income | $ | 236 |  |  | $ | 277 |  |  | $ | 219 |  |  | $ | 178 |  |  | $ | 41 |  |  | $ | (41) |  |  | (15) | % |  | $ | 195 |  |  | NM |
Average Balances (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total loans and leases | $ | 38.4 |  |  | $ | 39.9 |  |  | $ | 40.1 |  |  | $ | 40.6 |  |  | $ | 41.6 |  |  | $ | (1.5) |  |  | (4) | % |  | $ | (3.2) |  |  | (8) | % |
Interest-earning assets | 38.4 |  |  | 40.0 |  |  | 40.1 |  |  | 40.6 |  |  | 41.5 |  |  | (1.6) |  |  | (4) |  |  | (3.1) |  |  | (7) |  |
Total assets | 40.7 |  |  | 42.2 |  |  | 42.4 |  |  | 43.0 |  |  | 43.7 |  |  | (1.5) |  |  | (4) |  |  | (3.0) |  |  | (7) |  |
Total deposits | 65.4 |  |  | 64.9 |  |  | 62.1 |  |  | 60.8 |  |  | 59.3 |  |  | 0.5 |  |  | 1 |  |  | 6.1 |  |  | 10 |  |
Key Metrics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest margin 8 | 4.61 | % |  | 4.48 | % |  | 4.34 | % |  | 4.24 | % |  | 4.32 | % |  | 13 | bp |  |  |  | 29 | bp |  |  |
Efficiency ratio | 54.11 | % |  | 50.44 | % |  | 51.69 | % |  | 57.24 | % |  | 55.11 | % |  | 367 | bp |  |  |  | (100) | bp |  |  |
Loans-to-deposits ratio (period-end balances) | 57.26 | % |  | 59.85 | % |  | 62.45 | % |  | 65.29 | % |  | 68.07 | % |  | (259) | bp |  |  |  | (1,081) | bp |  |  |
Loans-to-deposits ratio (average-end balances) | 58.79 | % |  | 61.51 | % |  | 64.52 | % |  | 66.84 | % |  | 70.05 | % |  | (272) | bp |  |  |  | (1,126) | bp |  |  |
Return on average assets (annualized) | 2.30 | % |  | 2.64 | % |  | 2.10 | % |  | 1.65 | % |  | 0.37 | % |  | (34) | bp |  |  |  | 193 | bp |  |  |
Return on allocated equity 9 | 25.75 | % |  | 30.43 | % |  | 24.02 | % |  | 17.98 | % |  | 4.38 | % |  | (468) | bp |  |  |  | 2,137 | bp |  |  |
Financial center locations | 438 |  |  | 490 |  |  | 490 |  |  | 492 |  |  | 493 |  |  | (52) |  |  | (11) | % |  | (55) |  |  | (11) | % |

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 20.
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.
18

SPECIALTY BANKING
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 3Q21 Change vs. |
| 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q21 |  | 3Q20 |
|  |  |  |  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |
Income Statement (millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 154 |  |  | $ | 153 |  |  | $ | 158 |  |  | $ | 173 |  |  | $ | 161 |  |  | $ | 1 |  |  | 1 | % |  | $ | (7) |  |  | (4) | % |
Noninterest income | 141 |  |  | 150 |  |  | 185 |  |  | 167 |  |  | 181 |  |  | (9) |  |  | (6) |  |  | (40) |  |  | (22) |  |
Total revenue | 295 |  |  | 302 |  |  | 343 |  |  | 339 |  |  | 342 |  |  | (7) |  |  | (2) |  |  | (47) |  |  | (14) |  |
Noninterest expense | 141 |  |  | 146 |  |  | 154 |  |  | 135 |  |  | 138 |  |  | (5) |  |  | (3) |  |  | 3 |  |  | 2 |  |
Pre-provision net revenue 4 | 154 |  |  | 156 |  |  | 189 |  |  | 205 |  |  | 204 |  |  | (2) |  |  | (1) |  |  | (50) |  |  | (25) |  |
Provision for credit losses 5 | (33) |  |  | (21) |  |  | (7) |  |  | 11 |  |  | 34 |  |  | (12) |  |  | (57) |  |  | (67) |  |  | NM |
Income before income tax expense | 187 |  |  | 177 |  |  | 196 |  |  | 194 |  |  | 170 |  |  | 10 |  |  | 6 |  |  | 17 |  |  | 10 |  |
Income tax expense | 45 |  |  | 43 |  |  | 47 |  |  | 47 |  |  | 41 |  |  | 2 |  |  | 5 |  |  | 4 |  |  | 10 |  |
Net income | $ | 142 |  |  | $ | 134 |  |  | $ | 149 |  |  | $ | 147 |  |  | $ | 129 |  |  | $ | 8 |  |  | 6 | % |  | $ | 13 |  |  | 10 | % |
Average Balances (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total loans and leases | $ | 16.3 |  |  | $ | 16.0 |  |  | $ | 17.2 |  |  | $ | 18.2 |  |  | $ | 17.6 |  |  | $ | 0.3 |  |  | 2 | % |  | $ | (1.2) |  |  | (7) | % |
Interest-earning assets | 19.2 |  |  | 18.8 |  |  | 20.2 |  |  | 21.1 |  |  | 20.3 |  |  | 0.4 |  |  | 2 |  |  | (1.1) |  |  | (5) |  |
Total assets | 20.5 |  |  | 20.1 |  |  | 21.5 |  |  | 22.5 |  |  | 21.7 |  |  | 0.4 |  |  | 2 |  |  | (1.2) |  |  | (6) |  |
Total deposits | 6.2 |  |  | 5.5 |  |  | 5.3 |  |  | 4.9 |  |  | 4.4 |  |  | 0.7 |  |  | 12 |  |  | 1.8 |  |  | 40 |  |
Key Metrics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income product average daily revenue (thousands) | $ | 1,323 |  |  | $ | 1,425 |  |  | $ | 1,885 |  |  | $ | 1,505 |  |  | $ | 1,545 |  |  | $ | (102) |  |  | (7) | % |  | $ | (222) |  |  | (14) | % |
Net interest margin 8 | 3.18 | % |  | 3.26 | % |  | 3.18 | % |  | 3.26 | % |  | 3.16 | % |  | (8) | bp |  |  |  | 2 | bp |  |  |
Efficiency ratio | 47.71 | % |  | 48.32 | % |  | 44.90 | % |  | 39.72 | % |  | 40.37 | % |  | (61) | bp |  |  |  | 734 | bp |  |  |
Loans-to-deposits ratio (period-end balances) | 274 | % |  | 308 | % |  | 318 | % |  | 371 | % |  | 405 | % |  | (3,343) | bp |  |  |  | (13,078) | bp |  |  |
Loans-to-deposits ratio (average-end balances) | 266 | % |  | 293 | % |  | 325 | % |  | 375 | % |  | 399 | % |  | (2,710) | bp |  |  |  | (13,340) | bp |  |  |
Return on average assets (annualized) | 2.75 | % |  | 2.68 | % |  | 2.80 | % |  | 2.60 | % |  | 2.36 | % |  | 7 | bp |  |  |  | 39 | bp |  |  |
Return on allocated equity 9 | 34.14 | % |  | 31.87 | % |  | 33.67 | % |  | 32.30 | % |  | 29.66 | % |  | 227 | bp |  |  |  | 448 | 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 20.
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.
19

CORPORATE
Quarterly, Unaudited

|  | 3Q21 Change vs. |
| 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |  | 2Q21 |  | 3Q20 |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Income Statement (millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income/(expense) | $ | (106) |  |  | $ | (100) |  |  | $ | (77) |  |  | $ | (81) |  |  | $ | (77) |  |  | $ | (6) |  |  | (6) | % |  | $ | (29) |  |  | (38) | % |
Noninterest income 2 | (7) |  |  | 27 |  |  | 13 |  |  | 17 |  |  | 545 |  |  | (34) |  |  | (126) |  |  | (552) |  |  | (101) |  |
Total revenues | (113) |  |  | (73) |  |  | (63) |  |  | (64) |  |  | 468 |  |  | (40) |  |  | (55) |  |  | (581) |  |  | (124) |  |
Noninterest expense | 84 |  |  | 73 |  |  | 118 |  |  | 67 |  |  | 148 |  |  | 11 |  |  | 15 |  |  | (64) |  |  | (43) |  |
Pre-provision net revenue 4 | (197) |  |  | (146) |  |  | (181) |  |  | (131) |  |  | 319 |  |  | (51) |  |  | (35) |  |  | (516) |  |  | NM |
Provision for credit losses 5 | — |  |  | (6) |  |  | (6) |  |  | (7) |  |  | (1) |  |  | 6 |  |  | 100 |  |  | 1 |  |  | 100 |  |
Income before income tax expense | (197) |  |  | (140) |  |  | (175) |  |  | (124) |  |  | 321 |  |  | (57) |  |  | (41) |  |  | (518) |  |  | NM |
Income tax expense (benefit) | (54) |  |  | (40) |  |  | (42) |  |  | (44) |  |  | (48) |  |  | (14) |  |  | (35) |  |  | (6) |  |  | (13) |  |
Net income/(loss) | $ | (143) |  |  | $ | (101) |  |  | $ | (133) |  |  | $ | (80) |  |  | $ | 369 |  |  | $ | (42) |  |  | (42) | % |  | $ | (512) |  |  | (139) | % |
Average Balance Sheet (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing assets | $ | 24.2 |  |  | $ | 22.2 |  |  | $ | 18.4 |  |  | $ | 15.3 |  |  | $ | 13.2 |  |  | $ | 1.9 |  |  | 9 | % |  | $ | 10.9 |  |  | 83 | % |
Total assets | 27.2 |  |  | 25.3 |  |  | 21.5 |  |  | 18.3 |  |  | 16.3 |  |  | 1.9 |  |  | 8 |  |  | 10.9 |  |  | 67 | % |

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 20.
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 Occupancy and Equipment expense includes Computer Software Expense.
4 Pre-provision net revenue is a non-GAAP measure and is reconciled to income before income taxes (GAAP) in the table.
5 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.
6 Represents a non-GAAP measure and is reconciled to the nearest GAAP measure in the non-GAAP to GAAP reconciliations beginning on page 21.
7 Credit card and other includes an insignificant amount of commercial credit card balances.
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.
20

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |
($s in millions, except per share data) | 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |  |  |  |  |
Tangible Common Equity (Non-GAAP) |  |  |  |  |  |  |  |  |  |  |  |  |  |
(A) Total equity (GAAP) | $ | 8,533 |  |  | $ | 8,566 |  |  | $ | 8,307 |  |  | $ | 8,307 |  |  | $ | 8,144 |  |  |  |  |  |
Less: Noncontrolling interest (a) | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  |  |  |  |
Less: Preferred stock (a) | 520 |  |  | 520 |  |  | 470 |  |  | 470 |  |  | 470 |  |  |  |  |  |
(B) Total common equity | $ | 7,717 |  |  | $ | 7,750 |  |  | $ | 7,541 |  |  | $ | 7,541 |  |  | $ | 7,378 |  |  |  |  |  |
Less: Intangible assets (GAAP) (b) | 1,822 |  |  | 1,836 |  |  | 1,850 |  |  | 1,864 |  |  | 1,876 |  |  |  |  |  |
(C) Tangible common equity (Non-GAAP) | $ | 5,895 |  |  | $ | 5,914 |  |  | $ | 5,691 |  |  | $ | 5,677 |  |  | $ | 5,502 |  |  |  |  |  |
Tangible Assets (Non-GAAP) |  |  |  |  |  |  |  |  |  |  |  |  |  |
(D) Total assets (GAAP) | $ | 88,537 |  |  | $ | 87,908 |  |  | $ | 87,513 |  |  | $ | 84,209 |  |  | $ | 83,030 |  |  |  |  |  |
Less: Intangible assets (GAAP) (b) | 1,822 |  |  | 1,836 |  |  | 1,850 |  |  | 1,864 |  |  | 1,876 |  |  |  |  |  |
(E) Tangible assets (Non-GAAP) | $ | 86,715 |  |  | $ | 86,072 |  |  | $ | 85,663 |  |  | $ | 82,345 |  |  | $ | 81,154 |  |  |  |  |  |
Period-end Shares Outstanding |  |  |  |  |  |  |  |  |  |  |  |  |  |
(F) Period-end shares outstanding | 542 |  |  | 551 |  |  | 552 |  |  | 555 |  |  | 555 |  |  |  |  |  |
Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |
(A)/(D) Total equity to total assets (GAAP) | 9.64 | % |  | 9.74 | % |  | 9.49 | % |  | 9.86 | % |  | 9.81 | % |  |  |  |  |
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP) | 6.80 | % |  | 6.87 | % |  | 6.64 | % |  | 6.89 | % |  | 6.78 | % |  |  |  |  |
(B)/(F) Book value per common share (GAAP) | $ | 14.24 |  |  | $ | 14.07 |  |  | $ | 13.65 |  |  | $ | 13.59 |  |  | $ | 13.30 |  |  |  |  |  |
(C)/(F) Tangible book value per common share (Non-GAAP) | $ | 10.88 |  |  | $ | 10.74 |  |  | $ | 10.30 |  |  | $ | 10.23 |  |  | $ | 9.92 |  |  |  |  |  |

(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.
21

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
|  | 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |
($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 |  | $ | 533 |  | $ | 3 |  | $ | 536 |  |  | $ | 542 |  | $ | 3 |  | $ | 545 |  |  | $ | 552 |  | $ | 3 |  | $ | 555 |  |  | $ | 574 |  | $ | 3 |  | $ | 578 |  |  | $ | 598 |  | $ | 3 |  | $ | 601 |  |
Interest expense- FTE |  | 41 | — |  | 41 |  | 45 | — |  | 45 |  |  | 45 | — |  | 45 |  |  | 53 | — |  | 53 |  |  | 66 | — |  | 66 |  |
Net interest income- FTE |  | 492 | 3 |  | 495 |  | 497 | 3 |  | 500 |  |  | 508 | 3 |  | 511 |  |  | 522 | 3 |  | 525 |  |  | 532 | 3 |  | 535 |  |
Less: Taxable-equivalent adjustment |  | — |  | 3 |  | 3 |  |  | — |  | 3 |  | 3 |  |  | — |  | 3 |  | 3 |  |  | — |  | 3 |  | 3 |  |  | — |  | 3 |  | 3 |  |
Net interest income |  | 492 |  | — |  | 492 |  |  | 497 |  | — |  | 497 |  |  | 508 |  | — |  | 508 |  |  | 522 |  | — |  | 522 |  |  | 532 |  | — |  | 532 |  |
Noninterest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income |  | 96 |  | — |  | 96 |  |  | 102 |  | — |  | 102 |  |  | 126 |  | — |  | 126 |  |  | 104 |  | — |  | 104 |  |  | 111 |  | — |  | 111 |  |
Mortgage banking and title |  | 34 |  | — |  | 34 |  |  | 38 |  | — |  | 38 |  |  | 53 |  | — |  | 53 |  |  | 57 |  | — |  | 57 |  |  | 66 |  | — |  | 66 |  |
Brokerage, trust, and insurance |  | 37 |  | — |  | 37 |  |  | 35 |  | — |  | 35 |  |  | 33 |  | — |  | 33 |  |  | 31 |  | — |  | 31 |  |  | 30 |  | — |  | 30 |  |
Service charges and fees |  | 56 |  | — |  | 56 |  |  | 54 |  | — |  | 54 |  |  | 53 |  | — |  | 53 |  |  | 53 |  | — |  | 53 |  |  | 50 |  | — |  | 50 |  |
Card and digital banking fees |  | 21 |  | — |  | 21 |  |  | 21 |  | — |  | 21 |  |  | 17 |  | — |  | 17 |  |  | 18 |  | — |  | 18 |  |  | 17 |  | — |  | 17 |  |
Deferred compensation income |  | 3 |  | — |  | 3 |  |  | 7 |  | — |  | 7 |  |  | 3 |  | — |  | 3 |  |  | 9 |  | — |  | 9 |  |  | 4 |  | — |  | 4 |  |
Other noninterest income |  | (1) |  | 22 |  | 21 |  |  | 27 |  | 2 |  | 29 |  |  | 15 |  | (1) |  | 14 |  |  | 16 |  | (1) |  | 15 |  |  | 546 |  | (532) |  | 14 |  |
Total noninterest income |  | 247 |  | 22 |  | 268 |  |  | 285 |  | 2 |  | 287 |  |  | 298 |  | (1) |  | 297 |  |  | 288 |  | (1) |  | 288 |  |  | 823 |  | (532) |  | 291 |  |
Total revenue |  | 738 |  | 22 |  | 760 |  |  | 781 |  | 2 |  | 784 |  |  | 806 |  | (1) |  | 805 |  |  | 810 |  | (1) |  | 810 |  |  | 1,355 |  | (532) |  | 823 |  |
Noninterest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits |  | 191 |  | — |  | 191 |  |  | 191 |  | — |  | 191 |  |  | 196 |  | — |  | 195 |  |  | 200 |  | — |  | 200 |  |  | 201 |  | (1) |  | 200 |  |
Incentives and commissions |  | 101 |  | (10) |  | 92 |  |  | 109 |  | (16) |  | 93 |  |  | 120 |  | (21) |  | 99 |  |  | 110 |  | (21) |  | 89 |  |  | 126 |  | (34) |  | 91 |  |
Deferred compensation expense |  | 4 |  | — |  | 4 |  |  | 6 |  | — |  | 6 |  |  | 3 |  | — |  | 3 |  |  | 9 |  | — |  | 9 |  |  | 3 |  | — |  | 3 |  |
Total personnel expense |  | 296 |  | (10) |  | 286 |  |  | 306 |  | (16) |  | 290 |  |  | 318 |  | (21) |  | 297 |  |  | 319 |  | (21) |  | 298 |  |  | 329 |  | (35) |  | 294 |  |
Occupancy and equipment |  | 75 |  | (1) |  | 74 |  |  | 75 |  | — |  | 75 |  |  | 76 |  | (4) |  | 72 |  |  | 76 |  | (2) |  | 74 |  |  | 77 |  | (4) |  | 73 |  |
Outside services |  | 89 |  | (24) |  | 65 |  |  | 63 |  | (6) |  | 56 |  |  | 58 |  | (4) |  | 54 |  |  | 59 |  | (7) |  | 52 |  |  | 78 |  | (32) |  | 46 |  |
Amortization of intangible assets |  | 14 |  | (1) |  | 13 |  |  | 14 |  | (1) |  | 13 |  |  | 14 |  | (1) |  | 13 |  |  | 15 |  | (1) |  | 14 |  |  | 15 |  | (1) |  | 14 |  |
Other noninterest expense | 52 |  | (10) |  | 42 |  |  | 40 |  | (9) |  | 31 |  |  | 78 |  | (50) |  | 28 |  |  | 39 |  | (4) |  | 35 |  |  | 89 |  | (44) |  | 45 |  |
Total noninterest expense | 526 |  | (46) |  | 480 |  |  | 497 |  | (32) |  | 465 |  |  | 544 |  | (80) |  | 464 |  |  | 508 |  | (34) |  | 474 |  |  | 587 |  | (116) |  | 471 |  |
Pre-provision net revenue | 213 |  | 68 |  | 281 |  |  | 284 |  | 34 |  | 318 |  |  | 262 |  | 79 |  | 340 |  |  | 302 |  | 33 |  | 335 |  |  | 768 |  | (416) |  | 352 |  |
Provision for credit losses | (85) |  | — |  | (85) |  |  | (115) |  | — |  | (115) |  |  | (45) |  | — |  | (45) |  |  | 1 |  | — |  | 1 |  |  | 227 |  | (147) |  | 80 |  |
Income before income taxes | 298 |  | 68 |  | 365 |  |  | 399 |  | 34 |  | 433 |  |  | 307 |  | 79 |  | 386 |  |  | 301 |  | 33 |  | 334 |  |  | 541 |  | (269) |  | 272 |  |
Provision for income taxes | 63 |  | 17 |  | 80 |  |  | 88 |  | 8 |  | 96 |  |  | 71 |  | 19 |  | 90 |  |  | 56 |  | 13 |  | 69 |  |  | 2 |  | 61 |  | 63 |  |
Net income | 235 |  | 51 |  | 286 |  |  | 311 |  | 26 |  | 337 |  |  | 235 |  | 60 |  | 295 |  |  | 245 |  | 20 |  | 265 |  |  | 539 |  | (331) |  | 208 |  |
Net income attributable to noncontrolling interest | 3 |  | — |  | 3 |  |  | 3 |  | — |  | 3 |  |  | 3 |  | — |  | 3 |  |  | 3 |  | — |  | 3 |  |  | 3 |  | — |  | 3 |  |
Net income attributable to controlling interest | 232 |  | 51 |  | 283 |  |  | 308 |  | 26 |  | 334 |  |  | 233 |  | 60 |  | 292 |  |  | 242 |  | 20 |  | 262 |  |  | 536 |  | (331) |  | 205 |  |
Preferred stock dividends | 8 |  | — |  | 8 |  |  | 13 |  | — |  | 13 |  |  | 8 |  | — |  | 8 |  |  | 8 |  | — |  | 8 |  |  | 13 |  | — |  | 13 |  |
Net income available to common shareholders | $ | 224 |  | $ | 51 |  | $ | 275 |  |  | $ | 295 |  | $ | 26 |  | $ | 321 |  |  | $ | 225 |  | $ | 60 |  | $ | 284 |  |  | $ | 234 |  | $ | 20 |  | $ | 255 |  |  | $ | 523 |  | $ | (331) |  | $ | 193 |  |
Common Stock Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS |  | $ | 0.41 |  | $ | (0.09) |  | $ | 0.50 |  |  | $ | 0.54 |  | $ | (0.05) |  | $ | 0.58 |  |  | $ | 0.41 |  | $ | (0.11) |  | $ | 0.51 |  |  | $ | 0.42 |  | $ | (0.04) |  | $ | 0.46 |  |  | $ | 0.95 |  | $ | 0.60 |  | $ | 0.35 |  |
Basic shares |  | 546 |  |  | 546 |  |  | 550 |  |  | 550 |  |  | 552 |  |  | 552 |  |  | 553 |  |  | 553 |  |  | 550 |  |  | 550 |  |
Diluted EPS |  | $ | 0.41 |  | $ | (0.09) |  | $ | 0.50 |  |  | $ | 0.53 |  | $ | (0.05) |  | $ | 0.58 |  |  | $ | 0.40 |  | $ | (0.11) |  | $ | 0.51 |  |  | $ | 0.42 |  | $ | (0.04) |  | $ | 0.46 |  |  | $ | 0.95 |  | $ | 0.60 |  | $ | 0.35 |  |
Diluted shares |  | 550 |  |  | 550 |  |  | 556 |  |  | 556 |  |  | 557 |  |  | 557 |  |  | 556 |  |  | 556 |  |  | 551 |  |  | 551 |  |
Memo: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Revenue-FTE (Non-GAAP) |  | $ | 738 |  | $ | 24 |  | $ | 763 |  |  | $ | 781 |  | $ | 5 |  | $ | 787 |  |  | $ | 806 |  | $ | 2 |  | $ | 808 |  |  | $ | 810 |  | $ | 2 |  | $ | 813 |  |  | $ | 1,355 |  | $ | (529) |  | $ | 826 |  |
PPNR-FTE (Non-GAAP) |  | $ | 213 |  | $ | 71 |  | $ | 283 |  |  | $ | 284 |  | $ | 37 |  | $ | 321 |  |  | $ | 262 |  | $ | 82 |  | $ | 343 |  |  | $ | 302 |  | $ | 36 |  | $ | 339 |  |  | $ | 768 |  | $ | (414) |  | $ | 355 |  |

Amounts adjusted for notable items as detailed on page 9.
Numbers may not foot due to rounding.
22

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
($s in millions, except per share data) |  | 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |  |  |  |  |
Adjusted Diluted EPS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income available to common shareholders ("NIAC") (GAAP) | a | $ | 224 |  |  | $ | 295 |  |  | $ | 225 |  |  | $ | 234 |  |  | $ | 523 |  |  |  |  |  |
Plus Tax effected notable items (Non-GAAP) (a) |  | 51 |  |  | 26 |  |  | 60 |  |  | 20 |  |  | (331) |  |  |  |  |  |
Adjusted net income available to common shareholders (Non-GAAP) | b | $ | 275 |  |  | $ | 321 |  |  | $ | 284 |  |  | $ | 255 |  |  | $ | 193 |  |  |  |  |  |
Diluted Shares (GAAP) | c | 550 |  |  | 556 |  |  | 557 |  |  | 556 |  |  | 551 |  |  |  |  |  |
Diluted EPS (GAAP) | a/c | $ | 0.41 |  |  | $ | 0.53 |  |  | $ | 0.40 |  |  | $ | 0.42 |  |  | $ | 0.95 |  |  |  |  |  |
Adjusted diluted EPS (Non-GAAP) | b/c | $ | 0.50 |  |  | $ | 0.58 |  |  | $ | 0.51 |  |  | $ | 0.46 |  |  | $ | 0.35 |  |  |  |  |  |
Adjusted Net Income ("NI") and Adjusted Return on Assets ("ROA") |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Income ("NI") (GAAP) |  | $ | 235 |  |  | $ | 311 |  |  | $ | 235 |  |  | $ | 245 |  |  | $ | 539 |  |  |  |  |  |
Plus Tax effected notable items (Non-GAAP) (a) |  | 51 |  |  | 26 |  |  | 60 |  |  | 20 |  |  | (331) |  |  |  |  |  |
Adjusted NI (Non-GAAP) |  | $ | 286 |  |  | $ | 337 |  |  | $ | 295 |  |  | $ | 265 |  |  | $ | 208 |  |  |  |  |  |
NI (annualized) (GAAP) | d | $ | 931 |  |  | $ | 1,247 |  |  | $ | 955 |  |  | $ | 974 |  |  | $ | 2,144 |  |  |  |  |  |
Adjusted NI (annualized) (Non-GAAP) | e | $ | 1,133 |  |  | $ | 1,353 |  |  | $ | 1,198 |  |  | $ | 1,055 |  |  | $ | 829 |  |  |  |  |  |
Average assets (GAAP) | f | $ | 88,401 |  |  | $ | 87,559 |  |  | $ | 85,401 |  |  | $ | 83,809 |  |  | $ | 81,683 |  |  |  |  |  |
ROA (GAAP) | d/f | 1.05 | % |  | 1.42 | % |  | 1.12 | % |  | 1.16 | % |  | 2.63 | % |  |  |  |  |
Adjusted ROA (Non-GAAP) | e/f | 1.28 | % |  | 1.54 | % |  | 1.40 | % |  | 1.26 | % |  | 1.01 | % |  |  |  |  |
Return on Average Common Equity ("ROCE")/ Return on Average Tangible Common Equity ("ROTCE")/ Adjusted ROTCE |  |  |  |
Net income available to common shareholders ("NIAC") (GAAP) | g | $ | 887 |  |  | $ | 1,182 |  |  | $ | 911 |  |  | $ | 933 |  |  | $ | 2,082 |  |  |  |  |  |
Adjusted Net income available to common shareholders (annualized) (Non-GAAP) | h | $ | 1,089 |  |  | $ | 1,288 |  |  | $ | 1,154 |  |  | $ | 1,013 |  |  | $ | 767 |  |  |  |  |  |
Average Common Equity (GAAP) | i | $ | 7,761 |  |  | $ | 7,651 |  |  | $ | 7,583 |  |  | $ | 7,444 |  |  | $ | 7,309 |  |  |  |  |  |
Intangible Assets (GAAP) (b) |  | 1,829 |  |  | 1,843 |  |  | 1,857 |  |  | 1,871 |  |  | 1,794 |  |  |  |  |  |
Average Tangible Common Equity (Non-GAAP) | j | $ | 5,932 |  |  | $ | 5,808 |  |  | $ | 5,726 |  |  | $ | 5,573 |  |  | $ | 5,515 |  |  |  |  |  |
ROCE (GAAP) | g/i | 11.43 | % |  | 15.45 | % |  | 12.01 | % |  | 12.53 | % |  | 28.49 | % |  |  |  |  |
ROTCE (Non-GAAP) | g/j | 14.95 | % |  | 20.36 | % |  | 15.90 | % |  | 16.73 | % |  | 37.75 | % |  |  |  |  |
Adjusted ROTCE (Non-GAAP) | h/j | 18.36 | % |  | 22.18 | % |  | 20.15 | % |  | 18.18 | % |  | 13.90 | % |  |  |  |  |

(a) Amounts adjusted for notable items as detailed on page 9.
(b) Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.
23

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(In millions) |  | 3Q21 |  | 2Q21 |  | 1Q21 |  | 4Q20 |  | 3Q20 |  |  |  |  |
Adjusted Noninterest Income as a % of Total Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest income (GAAP) | k | $ | 247 |  |  | $ | 285 |  |  | $ | 298 |  |  | $ | 288 |  |  | $ | 823 |  |  |  |  |  |
Plus notable items (GAAP) (a) |  | 22 |  |  | 2 |  |  | (1) |  |  | (1) |  |  | (532) |  |  |  |  |  |
Adjusted noninterest income (Non-GAAP) | l | $ | 268 |  |  | $ | 287 |  |  | $ | 297 |  |  | $ | 288 |  |  | $ | 291 |  |  |  |  |  |
Revenue (GAAP) | m | $ | 738 |  |  | $ | 781 |  |  | $ | 806 |  |  | $ | 810 |  |  | $ | 1,355 |  |  |  |  |  |
Taxable-equivalent adjustment |  | 3 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | 3 |  |  |  |  |  |
Revenue- Taxable-equivalent (Non-GAAP) |  | 741 |  |  | 784 |  |  | 809 |  |  | 813 |  |  | 1,358 |  |  |  |  |  |
Plus notable items (GAAP) (a) |  | 22 |  |  | 2 |  |  | (1) |  |  | (1) |  |  | (532) |  |  |  |  |  |
Adjusted revenue (Non-GAAP) | n | $ | 763 |  |  | $ | 787 |  |  | $ | 808 |  |  | $ | 813 |  |  | $ | 826 |  |  |  |  |  |
Noninterest income as a % of total revenue (GAAP) | k/m | 33.39 | % |  | 36.43 | % |  | 37.00 | % |  | 35.61 | % |  | 60.72 | % |  |  |  |  |
Adjusted noninterest income as a % of total revenue (Non-GAAP) | l/n | 35.14 | % |  | 36.49 | % |  | 36.78 | % |  | 35.42 | % |  | 35.20 | % |  |  |  |  |
Adjusted Efficiency Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest expense (GAAP) | o | $ | 526 |  |  | $ | 497 |  |  | $ | 544 |  |  | $ | 508 |  |  | $ | 587 |  |  |  |  |  |
Plus notable items (GAAP) (a) |  | (46) |  |  | (32) |  |  | (80) |  |  | (34) |  |  | (116) |  |  |  |  |  |
Adjusted noninterest expense (Non-GAAP) | p | $ | 480 |  |  | $ | 465 |  |  | $ | 464 |  |  | $ | 474 |  |  | $ | 471 |  |  |  |  |  |
Revenue (GAAP) | q | $ | 738 |  |  | $ | 781 |  |  | $ | 806 |  |  | $ | 810 |  |  | $ | 1,355 |  |  |  |  |  |
Taxable-equivalent adjustment |  | 3 |  |  | 3 |  |  | 3 |  |  | 3 |  |  | 3 |  |  |  |  |  |
Revenue- Taxable-equivalent (Non-GAAP) |  | 741 |  |  | 784 |  |  | 809 |  |  | 813 |  |  | 1,358 |  |  |  |  |  |
Plus notable items (GAAP) (a) |  | 22 |  |  | 2 |  |  | (1) |  |  | (1) |  |  | (532) |  |  |  |  |  |
Adjusted revenue (Non-GAAP) | r | $ | 763 |  |  | $ | 787 |  |  | $ | 808 |  |  | $ | 813 |  |  | $ | 826 |  |  |  |  |  |
Efficiency ratio (GAAP) | o/q | 71.21 | % |  | 63.67 | % |  | 67.53 | % |  | 62.71 | % |  | 43.31 | % |  |  |  |  |
Adjusted efficiency ratio (Non-GAAP) | p/r | 62.87 | % |  | 59.17 | % |  | 57.49 | % |  | 58.34 | % |  | 57.06 | % |  |  |  |  |

(a) Amounts adjusted for notable items as detailed on page 9.
(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)
|  |  |  | 3Q21 vs 2Q21 |  |
NII/NIM Analysis |  | NII |  | % |  | NIM
3Q21 Reported (FTE) |  | $ | 495 |  |  |  |  | 2.40 | %
Less: non-core items |  |  |  |  |  |
PPP coupon income and fees |  | 32 |  |  |  | 0.07 |
Time Deposit Amortization |  | 0 |  |  |  | — |
Loan Accretion |  | 20 |  |  |  | 0.10 |
IBKC Premium Amortization |  | (12) |  |  |  |  | (0.06) |
3Q21 Core (Non-GAAP) |  | $ | 454 |  |  | 1 | % |  | 2.28 | %
2Q21 Reported (FTE) |  | $ | 500 |  |  |  |  | 2.47 | %
Less: non-core items |  |  |  |  |  |
PPP coupon income and fees |  | 35 |  |  |  | 0.03 |
Time Deposit Amortization |  | 1 |  |  |  | — |
Loan Accretion |  | 25 |  |  |  | 0.14 |
IBKC Premium Amortization |  | (12) |  |  |  |  | (0.06) |
2Q21 Core (Non-GAAP) |  | $ | 450 |  |  |  |  | 2.36 | %

Numbers may not foot due to rounding.

|  | Period-end |  | Average
($s in millions) |  | 3Q21 |  | 2Q21 |  | 3Q21 vs 2Q21 |  | 3Q21 |  | 2Q21 |  | 3Q21 vs 2Q21
Loans excluding LMC & PPP |  |  |  |  |  | $ |  | % |  |  |  |  |  | $ |  | %
Total Commercial excl. LMC & PPP |  | $ | 36,553 |  |  | $ | 36,104 |  |  | $ | 449 |  |  | 1 | % |  | $ | 36,196 |  |  | $ | 35,792 |  |  | $ | 404 |  |  | 1 | %
Total Consumer |  | 11,726 |  | 11,867 |  | (141) |  |  | (1) | % |  | 11,767 |  | 11,939 |  | (172) |  |  | (1) | %
Total Loans excl. LMC & PPP |  | 48,279 |  | 47,971 |  | 308 |  |  | 1 | % |  | 47,963 |  | 47,731 |  | 233 |  |  | — | %
PPP |  | 2,017 |  | 3,840 |  | (1,823) |  |  | (47) | % |  | 2,925 |  | 4,764 |  | (1,839) |  |  | (39) | %
LMC |  | 5,139 |  | 4,876 |  | 263 |  |  | 5 | % |  | 4,620 |  | 4,334 |  | 287 |  |  | 7 | %
Total Loans |  | $ | 55,435 |  |  | $ | 56,687 |  |  | $ | (1,252) |  |  | (2) | % |  | $ | 55,508 |  |  | $ | 56,829 |  |  | $ | (1,321) |  |  | (2) | %
Loans excluding PPP |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Commercial excl. PPP |  | $ | 41,693 |  |  | $ | 40,980 |  |  | $ | 713 |  |  | 2 | % |  | $ | 40,816 |  |  | $ | 40,125 |  |  | $ | 691 |  |  | 2 | %
Total Consumer |  | 11,726 |  | 11,867 |  | (141) |  |  | (1) | % |  | 11,767 |  | 11,939 |  | (172) |  |  | (1) | %
Total Loans excl. PPP |  | $ | 53,418 |  |  | $ | 52,847 |  |  | 572 |  |  | 1 | % |  | $ | 52,583 |  |  | $ | 52,064 |  |  | 519 |  |  | 1 | %
PPP |  | 2,017 |  | 3,840 |  | (1,823) |  |  | (47) | % |  | 2,925 |  | 4,764 |  | (1,839) |  |  | (39) | %
Total Loans |  | $ | 55,435 |  |  | $ | 56,687 |  |  | $ | (1,252) |  |  | (2) | % |  | $ | 55,508 |  |  | $ | 56,829 |  |  | (1,321) |  |  | (2) | %

Numbers may not foot due to rounding.
25

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.
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.
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.
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