EX-99.1 2 a3q2023earningsrelease.htm 3Q2023 EARNINGS RELEASE
First Horizon Corporation Reports Third Quarter 2023 Net Income Available to Common Shareholders of
$129 Million, or EPS of $0.23; $150 Million, or $0.27, on an Adjusted Basis*
Period end deposits increased $1.6 billion QoQ or 2%, up 6% year-to-date with common equity tier 1 ratio of 11.1%
Period end loans increased $0.5 billion QoQ, or 1%, up 6% year-to-date
ROTCE of 8.0% and adjusted ROTCE of 9.2% with tangible book value per share of $11.22*
MEMPHIS, TN (October 18, 2023) – First Horizon Corporation (NYSE: FHN or “First Horizon”) today reported third quarter net income available to common shareholders ("NIAC") of $129 million, or earnings per share of $0.23, compared with second quarter 2023 NIAC of $317 million, or earnings per share of $0.56.
Third quarter 2023 results were reduced by a net $20 million after-tax, or $0.04 per share, of notable items compared with a benefit of $98 million, or $0.17 per share, in second quarter 2023. Excluding notable items, adjusted third quarter 2023 NIAC of $150 million, or $0.27 per share, decreased from $219 million, or $0.39 per share, in second quarter 2023.
“Our third quarter results demonstrated the strength and resilience of our company. Our loan and deposit trends continue to be solid. We opened more than 19,000 new deposit accounts bringing over $1 billion in new balances,” said Chairman, President and Chief Executive Officer Bryan Jordan. “We remain disciplined with credit quality; as the economic environment drives credit normalization, we expect credit to perform well over the cycle.”
“Thanks to the hard work of our associates, we’ve proven that we can be nimble and flexible with capital and expense control while managing the dynamics of our balance sheet across various economic cycles. Our actions will give us the ability to generate strong shareholder returns over the long-term,” continued Jordan.
Notable Items

Notable Items |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited ($s in millions, except per share data) | 3Q23 |  | 2Q23 |  |  | 3Q22 |  |  |  |
Summary of Notable Items: |  |  |  |  |  |  |  |  |  |
Gain on merger termination | $ | — |  |  | $ | 225 |  |  |  | $ | — |  |  |  |  |
Gain on sale of title services business (other noninterest income) | — |  |  | — |  |  |  | 21 |  |  |  |  |
Gain related to equity securities investment (other noninterest income) | — |  |  | — |  |  |  | 10 |  |  |  |  |
Net Merger/acquisition/transaction-related items | — |  |  | (30) |  |  |  | (24) |  |  |  |  |
Other notable expenses | (10) |  |  | (65) |  |  |  | — |  |  |  |  |
Total Notable items (pre-tax) | (10) |  |  | 130 |  |  |  | 7 |  |  |  |  |
Total Notable items (after-tax) * | (20) |  |  | 98 |  |  |  | 5 |  |  |  |  |
EPS impact of notable items | $ | (0.04) |  |  | $ | 0.17 |  |  |  | $ | 0.01 |  |  |  |  |
Numbers may not foot due to rounding. |  |  |  |  |  |  |  |  |  |
* 3Q23 includes after-tax notable items of $13 million comprised of $24 million related to the surrender of approximately $214 million in book value of bank owned life insurance policies, partially offset by an $11 million benefit from merger-related tax items. |  |

Third quarter pre-tax net notable items include $10 million of restructuring costs. Additionally, third quarter includes after-tax notable items of $13 million comprised of $24 million related to the surrender of approximately $214 million in book value of bank owned life insurance policies, partially offset by an $11 million benefit from merger-related tax items.
*ROTCE, PPNR, tangible book value per share, loans and leases excluding LMC, 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 5 for information on our use of Non-GAAP measures and their reconciliation to GAAP beginning on page 21.
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Third Quarter 2023 versus Second Quarter 2023 Highlights
•Total revenue of $778 million decreased $253 million from decreased noninterest income due to a $225 million gain on merger termination recognized in second quarter and lower net interest income. Adjusted revenue of $782 million decreased $28 million, or 3%, primarily due to a decline in net interest income.
•Net interest income of $605 million decreased $26 million, or 4%, as the benefit of higher loan rates and loan balances was more than offset by higher funding costs from customer deposit growth.
•Noninterest income of $173 million decreased $227 million due to a $225 million gain on merger termination recognized in second quarter. Adjusted noninterest income of $173 million decreased $2 million as lower deferred compensation income was partially offset by higher FHLB dividends received in third quarter.
•Noninterest expense of $474 million decreased $81 million driven by a $55 million decline in other notable items and $30 million of merger-related costs recognized in second quarter. Adjusted noninterest expense of $465 million increased $4 million as an increase in other noninterest expense from higher FDIC fees was partially offset by lower personnel expense.
•Provision expense of $110 million increased $60 million largely driven by a credit loss on a single relationship and loan growth.
•Average interest-earning assets of $76.3 billion increased $1.0 billion driven by a $1.5 billion increase in loans somewhat offset by a $0.4 billion decrease in the investment security portfolio and a $0.2 billion decrease in interest-bearing deposits with banks.
•Average deposits of $66.5 billion increased $5.1 billion, or 8%, driven by a $6.6 billion increase in interest-bearing deposits partially offset by a $1.5 billion decrease in DDA and other noninterest-bearing deposits.
•Total deposit costs of 244 basis points increased 71 basis points, reflecting a full quarter impact from a successful deposit campaign and the impact of a higher Fed Funds rate.
•Period-end deposits of $67.0 billion increased $1.6 billion reflecting a $2.6 billion increase in interest-bearing deposits partially offset by a $1.0 billion decrease in noninterest-bearing.
•Average loans increased $1.5 billion driven by a $1.0 billion increase in commercial loans and a $0.5 billion increase in consumer loans.
•Period-end loans increased $0.5 billion, or 1%, driven by a $0.3 billion increase in commercial and a $0.2 billion increase in consumer.
•Allowance for credit losses ("ACL") to loans ratio increased slightly to 1.36% as of September 30, 2023. The ACL to nonperforming loans ratio of 214% increased from 206% at June 30, 2023.
•Net charge-offs of $95 million increased $72 million largely driven by a single credit from a company in bankruptcy; nonperforming loans of $394 million decreased $8 million and the nonperforming loan ratio of 0.64% decreased from 0.66% at June 30, 2023.
•ROCE of 6.3%; ROTCE of 8.0%; Adjusted ROTCE of 9.2%; CET 1 ratio of 11.1%; and total capital ratio of 13.6%.
•Tangible book value per share of $11.22 at September 30, 2023 compared with $11.50 at June 30, 2023. The decrease was driven by higher mark-to-market on the AFS securities portfolio and interest rate hedges.
2

SUMMARY RESULTS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  | 3Q23 Change vs. |  |  |  |
($s in millions, except per share and balance sheet data) |  | 3Q23 |  | 2Q23 |  | 3Q22 |  | 2Q23 |  | 3Q22 |  |  |  |
|  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |  |  |  |
Income Statement |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income - taxable equivalent 1 |  | $ | 1,084 |  |  | $ | 1,019 |  |  | $ | 737 |  |  | $ | 65 |  |  | 6 | % |  | $ | 347 |  |  | 47 | % |  |  |  |
Interest expense- taxable equivalent 1 |  | 475 |  |  | 385 |  |  | 71 |  |  | 90 |  |  | 23 |  |  | 404 |  |  | NM |  |  |  |
Net interest income- taxable equivalent |  | 609 |  |  | 635 |  |  | 666 |  |  | (26) |  |  | (4) |  |  | (57) |  |  | (9) |  |  |  |  |
Less: Taxable-equivalent adjustment |  | 4 |  |  | 4 |  |  | 4 |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |
Net interest income |  | 605 |  |  | 631 |  |  | 662 |  |  | (26) |  |  | (4) |  |  | (57) |  |  | (9) |  |  |  |  |
Noninterest income |  | 173 |  |  | 400 |  |  | 213 |  |  | (227) |  |  | (57) |  |  | (40) |  |  | (19) |  |  |  |  |
Total revenue |  | 778 |  |  | 1,031 |  |  | 875 |  |  | (253) |  |  | (25) |  |  | (97) |  |  | (11) |  |  |  |  |
Noninterest expense |  | 474 |  |  | 555 |  |  | 468 |  |  | (81) |  |  | (15) |  |  | 6 |  |  | 1 |  |  |  |  |
Pre-provision net revenue 3 |  | 304 |  |  | 475 |  |  | 406 |  |  | (171) |  |  | (36) |  |  | (102) |  |  | (25) |  |  |  |  |
Provision for credit losses |  | 110 |  |  | 50 |  |  | 60 |  |  | 60 |  |  | 120 |  |  | 50 |  |  | 83 |  |  |  |  |
Income before income taxes |  | 194 |  |  | 425 |  |  | 346 |  |  | (231) |  |  | (54) |  |  | (152) |  |  | (44) |  |  |  |  |
Provision for income taxes |  | 52 |  |  | 96 |  |  | 78 |  |  | (44) |  |  | (46) |  |  | (26) |  |  | (33) |  |  |  |  |
Net income |  | 142 |  |  | 329 |  |  | 268 |  |  | (187) |  |  | (57) |  |  | (126) |  |  | (47) |  |  |  |  |
Net income attributable to noncontrolling interest |  | 5 |  |  | 5 |  |  | 3 |  |  | — |  |  | — |  |  | 2 |  |  | 67 |  |  |  |  |
Net income attributable to controlling interest |  | 137 |  |  | 325 |  |  | 265 |  |  | (188) |  |  | (58) |  |  | (128) |  |  | (48) |  |  |  |  |
Preferred stock dividends |  | 8 |  |  | 8 |  |  | 8 |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |
Net income available to common shareholders |  | $ | 129 |  |  | $ | 317 |  |  | $ | 257 |  |  | $ | (188) |  |  | (59) | % |  | $ | (128) |  |  | (50) | % |  |  |  |
Adjusted net income 4 |  | $ | 163 |  |  | $ | 231 |  |  | $ | 263 |  |  | $ | (68) |  |  | (29) | % |  | $ | (100) |  |  | (38) | % |  |  |  |
Adjusted net income available to common shareholders 4 |  | $ | 150 |  |  | $ | 219 |  |  | $ | 252 |  |  | $ | (69) |  |  | (32) | % |  | $ | (102) |  |  | (40) | % |  |  |  |
Common stock information |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS |  | $ | 0.23 |  |  | $ | 0.56 |  |  | $ | 0.45 |  |  | $ | (0.33) |  |  | (59) | % |  | $ | (0.22) |  |  | (49) | % |  |  |  |
Adjusted EPS 4 |  | $ | 0.27 |  |  | $ | 0.39 |  |  | $ | 0.44 |  |  | $ | (0.12) |  |  | (31) | % |  | $ | (0.17) |  |  | (39) | % |  |  |  |
Diluted shares 8 |  | 561 |  |  | 561 |  |  | 570 |  |  | — |  |  | — | % |  | (9) |  |  | (2) | % |  |  |  |
Key performance metrics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest margin |  | 3.17 | % |  | 3.38 | % |  | 3.48 | % |  | (21) | bp |  |  |  | (31) | bp |  |  |  |  |  |
Efficiency ratio |  | 60.92 |  |  | 53.87 |  |  | 53.56 |  |  | 705 |  |  |  |  | 736 |  |  |  |  |  |  |
Adjusted efficiency ratio 4 |  | 59.39 |  |  | 56.90 |  |  | 52.42 |  |  | 249 |  |  |  |  | 697 |  |  |  |  |  |  |
Effective income tax rate |  | 26.67 |  |  | 22.63 |  |  | 22.58 |  |  | 404 |  |  |  |  | 409 |  |  |  |  |  |  |
Return on average assets |  | 0.68 |  |  | 1.60 |  |  | 1.29 |  |  | (92) |  |  |  |  | (61) |  |  |  |  |  |  |
Adjusted return on average assets 4 |  | 0.78 |  |  | 1.13 |  |  | 1.27 |  |  | (35) |  |  |  |  | (49) |  |  |  |  |  |  |
Return on average common equity (“ROCE") |  | 6.3 |  |  | 16.4 |  |  | 13.9 |  |  | (1,012) |  |  |  |  | (757) |  |  |  |  |  |  |
Return on average tangible common equity (“ROTCE”)4 |  | 8.0 |  |  | 21.1 |  |  | 18.2 |  |  | (1,315) |  |  |  |  | (1,028) |  |  |  |  |  |  |
Adjusted ROTCE 4 |  | 9.2 |  |  | 14.6 |  |  | 17.9 |  |  | (538) |  |  |  |  | (868) |  |  |  |  |  |  |
Noninterest income as a % of total revenue |  | 22.27 |  |  | 38.82 |  |  | 24.30 |  |  | (1,655) |  |  |  |  | (203) |  |  |  |  |  |  |
Adjusted noninterest income as a % of total revenue 4 |  | 22.16 | % |  | 21.63 | % |  | 21.37 | % |  | 53 | bp |  |  |  | 79 | bp |  |  |  |  |  |
Balance Sheet (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average loans |  | $ | 61.4 |  |  | $ | 59.9 |  |  | $ | 56.5 |  |  | $ | 1.5 |  |  | 3 | % |  | $ | 4.9 |  |  | 9 | % |  |  |  |
Average deposits |  | 66.5 |  |  | 61.4 |  |  | 68.1 |  |  | 5.1 |  |  | 8 |  |  | (1.6) |  |  | (2) |  |  |  |  |
Average assets |  | 83.2 |  |  | 82.3 |  |  | 82.6 |  |  | 0.9 |  |  | 1 |  |  | 0.7 |  |  | 1 |  |  |  |  |
Average common equity |  | $ | 8.2 |  |  | $ | 7.7 |  |  | $ | 7.4 |  |  | $ | 0.4 |  |  | 5 | % |  | $ | 0.8 |  |  | 11 | % |  |  |  |
Asset Quality Highlights |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses to loans and leases |  | 1.36 | % |  | 1.35 | % |  | 1.31 | % |  | 1 | bp |  |  |  | 5 | bp |  |  |  |  |  |
Net charge-off ratio |  | 0.61 |  |  | 0.16 |  |  | 0.08 |  |  | 46 |  |  |  |  | 53 |  |  |  |  |  |  |
Nonperforming loan and leases ratio |  | 0.64 | % |  | 0.66 | % |  | 0.51 | % |  | (2) | bp |  |  |  | 13 | bp |  |  |  |  |  |
Capital Ratio Highlights (current quarter is an estimate) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common Equity Tier 1 |  | 11.1 | % |  | 11.1 | % |  | 9.9 | % |  | 4 | bp |  |  |  | 118 | bp |  |  |  |  |  |
Tier 1 |  | 12.1 |  |  | 12.1 |  |  | 11.7 |  |  | 3 |  |  |  |  | 41 |  |  |  |  |  |  |
Total Capital |  | 13.6 |  |  | 13.6 |  |  | 13.1 |  |  | 5 |  |  |  |  | 53 |  |  |  |  |  |  |
Tier 1 leverage |  | 10.5 | % |  | 10.5 | % |  | 9.8 | % |  | (5) | bp |  |  |  | 68 | 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 2023 versus Second Quarter 2023
Net interest income
Net interest income of $605 million decreased $26 million as the benefit of higher rates and loan balances was more than offset by higher funding costs driven by customer deposit growth. Net interest margin of 3.17% decreased 21 basis points largely as the benefit of higher rates and loan growth was more than offset by the impact of higher funding costs.
Noninterest income
Noninterest income of $173 million decreased $227 million due to a $225 million gain on merger termination recognized in second quarter. Adjusted noninterest income of $173 million decreased $2 million driven by an $8 million decrease in deferred compensation and lower fixed income, partially offset by higher FHLB dividends received in third quarter. Fixed income average daily revenue of $301 thousand decreased 14% compared with $348 thousand in second quarter 2023 due to continuing challenging market conditions.
Noninterest expense
Noninterest expense of $474 million decreased $81 million and included an $85 million decrease in notable items. Adjusted noninterest expense of $465 million increased $4 million as an increase in other noninterest expense was partially offset by lower personnel expense.
Loans and leases
Average loan and lease balances of $61.4 billion increased $1.5 billion reflecting a 2% increase in commercial and a 4% increase in consumer. Commercial loan growth of $1.0 billion was driven by a $0.6 billion increase in C&I loans. Consumer loan growth increased $0.5 billion compared to the prior quarter driven by an increase in consumer real estate. Loan balances excluding loans to mortgage companies (LMC) increased $1.4 billion compared to the prior quarter, driven by a $0.9 billion increase in commercial and a $0.5 billion increase in consumer.
Period-end loans and leases of $61.8 billion increased $0.5 billion from second quarter 2023, reflecting a 1% increase in commercial and a 1% increase in consumer. Before the $0.5 billion decrease of LMC, period-end loans increased $0.9 billion, or 2%, driven by a $0.7 billion increase in commercial and a $0.2 billion increase in consumer.
Deposits
Average deposits of $66.5 billion increased $5.1 billion, or 8%, driven by FHN's promotional deposit campaigns. Period-end deposits of $67.0 billion increased $1.6 billion reflecting a $2.6 billion increase in interest-bearing deposits partially offset by a $1.0 billion decrease in noninterest-bearing. Total deposit costs of 244 basis points increased 71 basis points with a 81 basis point increase in interest-bearing deposit costs.
Asset quality
Provision expense of $110 million increased $60 million in third quarter largely reflecting a credit loss on a single relationship and the impact of 2% loan growth excluding LMC.
Net charge-offs increased to $95 million, or 61 basis points, from $23 million, or 16 basis points, in second quarter 2023, largely driven by a single credit from a company in bankruptcy.
Nonperforming loans of $394 million decreased $8 million. Third quarter 2023 ACL to nonperforming loans coverage ratio of 214% compared with 206% in second quarter 2023.
The ACL to loans ratio increased to 1.36% from 1.35% in second quarter 2023.
4

Capital
CET1 ratio of 11.1% and total capital ratio of 13.6% in third quarter 2023 consistent with second quarter 2023.
Income taxes
Third quarter 2023 effective tax rate of 26.7% compared with 22.6% in second quarter 2023. On an adjusted basis, the effective tax rate of 20.1% in the third quarter 2023 decreased from 21.6% in second quarter 2023. Third quarter includes after-tax notable items of $24 million related to the surrender of approximately $214 million in book value of bank owned life insurance policies, partially offset by an $11 million benefit from merger-related tax items.
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, as amended; 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.
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, pre-provision net revenue ("PPNR"), Loans to Mortgage Companies ("LMC"), 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
5

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.
Conference Call Information
Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on October 18, 2023 by dialing 1-833-470-1428 (if calling from the U.S.) or 404-975-4839 (if calling from outside the U.S) and entering access code 535504. The conference call will begin at 8:30 a.m. CT.
Participants can also opt to listen to the live audio webcast at https://ir.firsthorizon.com/events-and-presentations/default.aspx.
A replay of the call will be available beginning at noon CT on October 19 until midnight CT on November 3, 2023. To listen to the replay, dial 1-866-813-9403 (U.S. callers); the access code is 902096. A replay of the webcast will also be available on our website on October 19 and will be archived on the site for one year.
First Horizon Corp. (NYSE: FHN), with $82.5 billion in assets as of September 30, 2023, is a leading regional financial services company, dedicated to helping our clients, communities and associates unlock their full potential with capital and counsel. Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates in 12 states across the southern U.S. The Company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services. First Horizon has been recognized as one of the nation's best employers by Fortune and Forbes magazines and a Top 10 Most Reputable U.S. Bank. More information is available at www.FirstHorizon.com.
Contact: Investor Relations - NRFlanders@firsthorizon.com
Media Relations - Beth.Ardoin@firsthorizon.com
6

CONSOLIDATED INCOME STATEMENT |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | 3Q23 Change vs. |  |  |  |  |  |
($s in millions, except per share data) | 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  | 2Q23 |  | 3Q22 |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |  |  |  |  |  |  |  |
Interest income - taxable equivalent 1 | $ | 1,084 |  |  | $ | 1,019 |  |  | $ | 923 |  |  | $ | 860 |  |  | $ | 737 |  |  | $ | 65 |  |  | 6 | % |  | $ | 347 |  |  | 47 | % |  |  |  |  |  |  |  |
Interest expense- taxable equivalent 1 | 475 |  |  | 385 |  |  | 232 |  |  | 148 |  |  | 71 |  |  | 90 |  |  | 23 |  |  | 404 |  |  | NM |  |  |  |  |  |  |  |
Net interest income- taxable equivalent | 609 |  |  | 635 |  |  | 691 |  |  | 712 |  |  | 666 |  |  | (26) |  |  | (4) |  |  | (57) |  |  | (9) |  |  |  |  |  |  |  |  |
Less: Taxable-equivalent adjustment | 4 |  |  | 4 |  |  | 4 |  |  | 4 |  |  | 4 |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |  |  |
Net interest income | 605 |  |  | 631 |  |  | 688 |  |  | 709 |  |  | 662 |  |  | (26) |  |  | (4) |  |  | (57) |  |  | (9) |  |  |  |  |  |  |  |  |
Noninterest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income | 28 |  |  | 30 |  |  | 39 |  |  | 35 |  |  | 46 |  |  | (2) |  |  | (7) |  |  | (18) |  |  | (39) |  |  |  |  |  |  |  |  |
Mortgage banking and title | 7 |  |  | 6 |  |  | 5 |  |  | 4 |  |  | 9 |  |  | 1 |  |  | 17 |  |  | (2) |  |  | (22) |  |  |  |  |  |  |  |  |
Brokerage, trust, and insurance | 34 |  |  | 35 |  |  | 34 |  |  | 33 |  |  | 34 |  |  | (1) |  |  | (3) |  |  | — |  |  | — |  |  |  |  |  |  |  |  |
Service charges and fees | 60 |  |  | 59 |  |  | 55 |  |  | 56 |  |  | 56 |  |  | 1 |  |  | 2 |  |  | 4 |  |  | 7 |  |  |  |  |  |  |  |  |
Card and digital banking fees | 20 |  |  | 21 |  |  | 19 |  |  | 20 |  |  | 21 |  |  | (1) |  |  | (5) |  |  | (1) |  |  | (5) |  |  |  |  |  |  |  |  |
Deferred compensation income | — |  |  | 8 |  |  | 3 |  |  | 7 |  |  | (3) |  |  | (8) |  |  | (100) |  |  | 3 |  |  | 100 |  |  |  |  |  |  |  |  |
Gain on merger termination | — |  |  | 225 |  |  | — |  |  | — |  |  | — |  |  | (225) |  |  | (100) |  |  | — |  |  | NM |  |  |  |  |  |  |  |
Other noninterest income | 25 |  |  | 17 |  |  | 15 |  |  | 20 |  |  | 50 |  |  | 8 |  |  | 47 |  |  | (25) |  |  | (50) |  |  |  |  |  |  |  |  |
Total noninterest income | 173 |  |  | 400 |  |  | 171 |  |  | 174 |  |  | 213 |  |  | (227) |  |  | (57) |  |  | (40) |  |  | (19) |  |  |  |  |  |  |  |  |
Total revenue | 778 |  |  | 1,031 |  |  | 859 |  |  | 882 |  |  | 875 |  |  | (253) |  |  | (25) |  |  | (97) |  |  | (11) |  |  |  |  |  |  |  |  |
Noninterest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits | 188 |  |  | 191 |  |  | 188 |  |  | 178 |  |  | 186 |  |  | (3) |  |  | (2) |  |  | 2 |  |  | 1 |  |  |  |  |  |  |  |  |
Incentives and commissions | 77 |  |  | 86 |  |  | 80 |  |  | 97 |  |  | 92 |  |  | (9) |  |  | (10) |  |  | (15) |  |  | (16) |  |  |  |  |  |  |  |  |
Deferred compensation expense | — |  |  | 8 |  |  | 3 |  |  | 7 |  |  | (2) |  |  | (8) |  |  | (100) |  |  | 2 |  |  | 100 |  |  |  |  |  |  |  |  |
Total personnel expense | 266 |  |  | 285 |  |  | 271 |  |  | 281 |  |  | 275 |  |  | (19) |  |  | (7) |  |  | (9) |  |  | (3) |  |  |  |  |  |  |  |  |
Occupancy and equipment 2 | 67 |  |  | 68 |  |  | 70 |  |  | 71 |  |  | 71 |  |  | (1) |  |  | (1) |  |  | (4) |  |  | (6) |  |  |  |  |  |  |  |  |
Outside services | 69 |  |  | 71 |  |  | 66 |  |  | 70 |  |  | 66 |  |  | (2) |  |  | (3) |  |  | 3 |  |  | 5 |  |  |  |  |  |  |  |  |
Amortization of intangible assets | 12 |  |  | 12 |  |  | 12 |  |  | 13 |  |  | 13 |  |  | — |  |  | — |  |  | (1) |  |  | (8) |  |  |  |  |  |  |  |  |
Other noninterest expense | 60 |  |  | 119 |  |  | 59 |  |  | 69 |  |  | 44 |  |  | (59) |  |  | (50) |  |  | 16 |  |  | 36 |  |  |  |  |  |  |  |  |
Total noninterest expense | 474 |  |  | 555 |  |  | 478 |  |  | 503 |  |  | 468 |  |  | (81) |  |  | (15) |  |  | 6 |  |  | 1 |  |  |  |  |  |  |  |  |
Pre-provision net revenue 3 | 304 |  |  | 475 |  |  | 381 |  |  | 379 |  |  | 406 |  |  | (171) |  |  | (36) |  |  | (102) |  |  | (25) |  |  |  |  |  |  |  |  |
Provision for credit losses | 110 |  |  | 50 |  |  | 50 |  |  | 45 |  |  | 60 |  |  | 60 |  |  | 120 |  |  | 50 |  |  | 83 |  |  |  |  |  |  |  |  |
Income before income taxes | 194 |  |  | 425 |  |  | 331 |  |  | 334 |  |  | 346 |  |  | (231) |  |  | (54) |  |  | (152) |  |  | (44) |  |  |  |  |  |  |  |  |
Provision for income taxes | 52 |  |  | 96 |  |  | 75 |  |  | 64 |  |  | 78 |  |  | (44) |  |  | (46) |  |  | (26) |  |  | (33) |  |  |  |  |  |  |  |  |
Net income | 142 |  |  | 329 |  |  | 256 |  |  | 270 |  |  | 268 |  |  | (187) |  |  | (57) |  |  | (126) |  |  | (47) |  |  |  |  |  |  |  |  |
Net income attributable to noncontrolling interest | 5 |  |  | 5 |  |  | 4 |  |  | 4 |  |  | 3 |  |  | — |  |  | — |  |  | 2 |  |  | 67 |  |  |  |  |  |  |  |  |
Net income attributable to controlling interest | 137 |  |  | 325 |  |  | 251 |  |  | 266 |  |  | 265 |  |  | (188) |  |  | (58) |  |  | (128) |  |  | (48) |  |  |  |  |  |  |  |  |
Preferred stock dividends | 8 |  |  | 8 |  |  | 8 |  |  | 8 |  |  | 8 |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |  |  |
Net income available to common shareholders | $ | 129 |  |  | $ | 317 |  |  | $ | 243 |  |  | $ | 258 |  |  | $ | 257 |  |  | $ | (188) |  |  | (59) | % |  | $ | (128) |  |  | (50) | % |  |  |  |  |  |  |  |
Common Share Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS | $ | 0.23 |  |  | $ | 0.59 |  |  | $ | 0.45 |  |  | $ | 0.48 |  |  | $ | 0.48 |  |  | $ | (0.36) |  |  | (61) | % |  | $ | (0.25) |  |  | (52) | % |  |  |  |  |  |  |  |
Basic shares | 559 |  |  | 539 |  |  | 537 |  |  | 536 |  |  | 536 |  |  | 20 |  |  | 4 |  |  | 23 |  |  | 4 |  |  |  |  |  |  |  |  |
Diluted EPS | $ | 0.23 |  |  | $ | 0.56 |  |  | $ | 0.43 |  |  | $ | 0.45 |  |  | $ | 0.45 |  |  | $ | (0.33) |  |  | (59) |  |  | $ | (0.22) |  |  | (49) |  |  |  |  |  |  |  |  |
Diluted shares 8 | 561 |  |  | 561 |  |  | 572 |  |  | 572 |  |  | 570 |  |  | — |  |  | — | % |  | (9) |  |  | (2) | % |  |  |  |  |  |  |  |
Effective tax rate | 26.7 | % |  | 22.6 | % |  | 22.7 | % |  | 19.2 | % |  | 22.6 | % |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

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

|  |  |  |  |  |  |  |  |  |  | 3Q23 Change vs. |  |  |  |  |  |
($s in millions, except per share data) | 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  | 2Q23 |  | 3Q22 |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |  |  |  |  |  |  |  |
Net interest income (FTE)1 | $ | 609 |  |  | $ | 635 |  |  | $ | 691 |  |  | $ | 712 |  |  | $ | 666 |  |  | $ | (26) |  |  | (4) | % |  | $ | (57) |  |  | (9) | % |  |  |  |  |  |  |  |
Adjusted noninterest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income | 28 |  |  | 30 |  |  | 39 |  |  | 35 |  |  | 46 |  |  | (2) |  |  | (7) |  |  | (18) |  |  | (39) |  |  |  |  |  |  |  |  |
Adjusted mortgage banking and title | 7 |  |  | 6 |  |  | 5 |  |  | 4 |  |  | 9 |  |  | 1 |  |  | 17 |  |  | (2) |  |  | (22) |  |  |  |  |  |  |  |  |
Brokerage, trust, and insurance | 34 |  |  | 35 |  |  | 34 |  |  | 33 |  |  | 34 |  |  | (1) |  |  | (3) |  |  | — |  |  | — |  |  |  |  |  |  |  |  |
Service charges and fees | 60 |  |  | 59 |  |  | 55 |  |  | 56 |  |  | 56 |  |  | 1 |  |  | 2 |  |  | 4 |  |  | 7 |  |  |  |  |  |  |  |  |
Card and digital banking fees | 20 |  |  | 21 |  |  | 19 |  |  | 20 |  |  | 21 |  |  | (1) |  |  | (5) |  |  | (1) |  |  | (5) |  |  |  |  |  |  |  |  |
Deferred compensation income | — |  |  | 8 |  |  | 3 |  |  | 7 |  |  | (3) |  |  | (8) |  |  | (100) |  |  | 3 |  |  | 100 |  |  |  |  |  |  |  |  |
Gain on merger termination | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |  |  |  |  |  |  |  |
Adjusted other noninterest income | 25 |  |  | 17 |  |  | 15 |  |  | 20 |  |  | 18 |  |  | 8 |  |  | 47 |  |  | 7 |  |  | 39 |  |  |  |  |  |  |  |  |
Adjusted total noninterest income | $ | 173 |  |  | $ | 175 |  |  | $ | 171 |  |  | $ | 173 |  |  | $ | 181 |  |  | $ | (2) |  |  | (1) | % |  | $ | (8) |  |  | (4) | % |  |  |  |  |  |  |  |
Total revenue (FTE)1 | $ | 782 |  |  | $ | 810 |  |  | $ | 863 |  |  | $ | 885 |  |  | $ | 847 |  |  | $ | (28) |  |  | (3) | % |  | $ | (65) |  |  | (8) | % |  |  |  |  |  |  |  |
Adjusted noninterest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted personnel expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted salaries and benefits | $ | 188 |  |  | $ | 187 |  |  | $ | 188 |  |  | $ | 178 |  |  | $ | 185 |  |  | $ | 1 |  |  | 1 | % |  | $ | 3 |  |  | 2 | % |  |  |  |  |  |  |  |
Adjusted Incentives and commissions | 68 |  |  | 65 |  |  | 64 |  |  | 70 |  |  | 68 |  |  | 3 |  |  | 5 |  |  | — |  |  | — |  |  |  |  |  |  |  |  |
Adjusted deferred compensation expense | — |  |  | 8 |  |  | 3 |  |  | 7 |  |  | (2) |  |  | (8) |  |  | (100) |  |  | 2 |  |  | 100 |  |  |  |  |  |  |  |  |
Adjusted total personnel expense | 256 |  |  | 260 |  |  | 255 |  |  | 254 |  |  | 251 |  |  | (4) |  |  | (2) |  |  | 5 |  |  | 2 |  |  |  |  |  |  |  |  |
Adjusted occupancy and equipment 2 | 67 |  |  | 68 |  |  | 70 |  |  | 71 |  |  | 70 |  |  | (1) |  |  | (1) |  |  | (3) |  |  | (4) |  |  |  |  |  |  |  |  |
Adjusted outside services | 69 |  |  | 68 |  |  | 63 |  |  | 64 |  |  | 64 |  |  | 1 |  |  | 1 |  |  | 5 |  |  | 8 |  |  |  |  |  |  |  |  |
Adjusted amortization of intangible assets | 12 |  |  | 12 |  |  | 12 |  |  | 12 |  |  | 12 |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |  |  |
Adjusted other noninterest expense | 60 |  |  | 53 |  |  | 58 |  |  | 58 |  |  | 48 |  |  | 7 |  |  | 13 |  |  | 12 |  |  | 25 |  |  |  |  |  |  |  |  |
Adjusted total noninterest expense | $ | 465 |  |  | $ | 461 |  |  | $ | 457 |  |  | $ | 458 |  |  | $ | 444 |  |  | $ | 4 |  |  | 1 | % |  | $ | 21 |  |  | 5 | % |  |  |  |  |  |  |  |
Adjusted pre-provision net revenue 3 | $ | 318 |  |  | $ | 349 |  |  | $ | 406 |  |  | $ | 428 |  |  | $ | 403 |  |  | $ | (31) |  |  | (9) | % |  | $ | (85) |  |  | (21) | % |  |  |  |  |  |  |  |
Provision for credit losses | $ | 110 |  |  | $ | 50 |  |  | $ | 50 |  |  | $ | 45 |  |  | $ | 60 |  |  | $ | 60 |  |  | 120 | % |  | $ | 50 |  |  | 83 | % |  |  |  |  |  |  |  |
Adjusted net income available to common shareholders | $ | 150 |  |  | $ | 219 |  |  | $ | 259 |  |  | $ | 293 |  |  | $ | 252 |  |  | $ | (69) |  |  | (32) | % |  | $ | (102) |  |  | (40) | % |  |  |  |  |  |  |  |
Adjusted Common Share Data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted diluted EPS | $ | 0.27 |  |  | $ | 0.39 |  |  | $ | 0.45 |  |  | $ | 0.51 |  |  | $ | 0.44 |  |  | $ | (0.12) |  |  | (31) | % |  | $ | (0.17) |  |  | (39) | % |  |  |  |  |  |  |  |
Diluted shares 8 | 561 |  |  | 561 |  |  | 572 |  |  | 572 |  |  | 570 |  |  | — |  |  | — | % |  | (9) |  |  | (2) | % |  |  |  |  |  |  |  |
Adjusted effective tax rate | 20.1 | % |  | 21.6 | % |  | 22.9 | % |  | 19.8 | % |  | 22.4 | % |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted ROTCE | 9.2 | % |  | 14.6 | % |  | 18.6 | % |  | 21.7 | % |  | 17.9 | % |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Adjusted efficiency ratio | 59.4 | % |  | 56.9 | % |  | 53.0 | % |  | 51.7 | % |  | 52.4 | % |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

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

NOTABLE ITEMS
Quarterly, Unaudited

(In millions) | 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  |  |  |
Summary of Notable Items: |  |  |  |  |  |  |  |  |  |  |  |  |
Gain on merger termination | $ | — |  |  | $ | 225 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |
Gain on sale of title services business | — |  |  | — |  |  | — |  |  | 1 |  |  | 21 |  |  |  |  |
Gain related to equity securities investments | — |  |  | — |  |  | — |  |  | — |  |  | 10 |  |  |  |  |
Net Merger/acquisition/transaction-related items | — |  |  | (30) |  |  | (21) |  |  | (36) |  |  | (24) |  |  |  |  |
Other notable expenses* | (10) |  |  | (65) |  |  | — |  |  | (10) |  |  | — |  |  |  |  |
Total notable items (pre-tax) | (10) |  |  | 130 |  |  | (21) |  |  | (45) |  |  | 7 |  |  |  |  |
Tax-related notable items ** | (13) |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |
EPS impact of notable items | $ | (0.04) |  |  | $ | 0.17 |  |  | $ | (0.03) |  |  | $ | (0.06) |  |  | $ | 0.01 |  |  |  |  |

Numbers may not foot due to rounding
* 3Q23 includes $10 million of restructuring expenses; 2Q23 includes $50 million contribution to First Horizon Foundation; 2Q23 and 4Q22 includes $15 million and $10 million, respectively of Visa derivative valuation expense.
** 3Q23 includes after-tax notable items of $24 million related to the surrender of approximately $214 million in book value of bank owned life insurance policies, partially offset by an $11 million benefit from merger-related tax items.

IMPACT OF NOTABLE ITEMS:
Quarterly, Unaudited

(In millions) | 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  |  |  |  |  |  |
Impacts of Notable Items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain on merger termination | $ | — |  |  | $ | (225) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  |  |
Other noninterest income | — |  |  | — |  |  | — |  |  | (1) |  |  | (32) |  |  |  |  |  |  |  |
Total noninterest income | $ | — |  |  | $ | (225) |  |  | $ | — |  |  | $ | (1) |  |  | $ | (32) |  |  |  |  |  |  |  |
Noninterest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits | $ | — |  |  | $ | (4) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  |  |  |  |
Incentives and commissions | (9) |  |  | (21) |  |  | (16) |  |  | (27) |  |  | (24) |  |  |  |  |  |  |  |
Deferred compensation expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |  |
Total personnel expenses | (10) |  |  | (25) |  |  | (16) |  |  | (27) |  |  | (25) |  |  |  |  |  |  |  |
Occupancy and equipment 2 | — |  |  | — |  |  | — |  |  | — |  |  | (1) |  |  |  |  |  |  |  |
Outside services | — |  |  | (4) |  |  | (3) |  |  | (6) |  |  | (2) |  |  |  |  |  |  |  |
Amortization of intangible assets | — |  |  | — |  |  | — |  |  | (1) |  |  | (1) |  |  |  |  |  |  |  |
Other noninterest expense | — |  |  | (66) |  |  | (2) |  |  | (11) |  |  | 4 |  |  |  |  |  |  |  |
Total noninterest expense | $ | (10) |  |  | $ | (95) |  |  | $ | (21) |  |  | $ | (46) |  |  | $ | (25) |  |  |  |  |  |  |  |
Income before income taxes | $ | 10 |  |  | $ | (130) |  |  | $ | 21 |  |  | $ | 45 |  |  | $ | (7) |  |  |  |  |  |  |  |
Provision for income taxes * | (11) |  |  | (33) |  |  | 6 |  |  | 11 |  |  | (2) |  |  |  |  |  |  |  |
Net income/(loss) available to common shareholders | $ | 20 |  |  | $ | (98) |  |  | $ | 16 |  |  | $ | 34 |  |  | $ | (5) |  |  |  |  |  |  |  |

Numbers may not foot due to rounding
* 3Q23 includes after-tax notable items of $24 million related to the surrender of approximately $214 million in book value of bank owned life insurance policies, partially offset by an $11 million benefit from merger-related tax items.
9

FINANCIAL RATIOS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | 3Q23 Change vs. |  |  |  |  |  |
| 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  | 2Q23 | 3Q22 |  |  |  |  |
FINANCIAL RATIOS |  |  |  |  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |  |  |  |  |  |  |  |
Net interest margin | 3.17 | % |  | 3.38 | % |  | 3.88 | % |  | 3.89 | % |  | 3.48 | % |  | (21) | bp |  |  |  | (31) | bp |  |  |  |  |  |  |  |  |  |
Return on average assets | 0.68 | % |  | 1.60 | % |  | 1.32 | % |  | 1.35 | % |  | 1.29 | % |  | (92) |  |  |  |  | (61) |  |  |  |  |  |  |  |  |  |  |
Adjusted return on average assets 4 | 0.78 | % |  | 1.13 | % |  | 1.40 | % |  | 1.52 | % |  | 1.27 | % |  | (35) |  |  |  |  | (49) |  |  |  |  |  |  |  |  |  |  |
Return on average common equity (“ROCE”) | 6.28 | % |  | 16.40 | % |  | 13.34 | % |  | 14.42 | % |  | 13.85 | % |  | (1,012) |  |  |  |  | (757) |  |  |  |  |  |  |  |  |  |  |
Return on average tangible common equity (“ROTCE”)4 | 7.95 | % |  | 21.10 | % |  | 17.43 | % |  | 19.14 | % |  | 18.23 | % |  | (1,315) |  |  |  |  | (1,028) |  |  |  |  |  |  |  |  |  |  |
Adjusted ROTCE 4 | 9.21 | % |  | 14.59 | % |  | 18.55 | % |  | 21.68 | % |  | 17.89 | % |  | (538) |  |  |  |  | (868) |  |  |  |  |  |  |  |  |  |  |
Noninterest income as a % of total revenue | 22.27 | % |  | 38.82 | % |  | 19.94 | % |  | 19.68 | % |  | 24.30 | % |  | (1,655) |  |  |  |  | (203) |  |  |  |  |  |  |  |  |  |  |
Adjusted noninterest income as a % of total revenue 4 | 22.16 | % |  | 21.63 | % |  | 19.85 | % |  | 19.55 | % |  | 21.37 | % |  | 53 |  |  |  |  | 79 |  |  |  |  |  |  |  |  |  |  |
Efficiency ratio | 60.92 | % |  | 53.87 | % |  | 55.65 | % |  | 57.07 | % |  | 53.56 | % |  | 705 |  |  |  |  | 736 |  |  |  |  |  |  |  |  |  |  |
Adjusted efficiency ratio 4 | 59.39 | % |  | 56.90 | % |  | 52.95 | % |  | 51.70 | % |  | 52.42 | % |  | 249 |  |  |  |  | 697 |  |  |  |  |  |  |  |  |  |  |
CAPITAL DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CET1 capital ratio* | 11.1 | % |  | 11.1 | % |  | 10.4 | % |  | 10.2 | % |  | 9.9 | % |  | 4 | bp |  |  |  | 118 | bp |  |  |  |  |  |  |  |  |  |
Tier 1 capital ratio* | 12.1 | % |  | 12.1 | % |  | 12.1 | % |  | 11.9 | % |  | 11.7 | % |  | 3 | bp |  |  |  | 41 | bp |  |  |  |  |  |  |  |  |  |
Total capital ratio* | 13.6 | % |  | 13.6 | % |  | 13.6 | % |  | 13.3 | % |  | 13.1 | % |  | 5 | bp |  |  |  | 53 | bp |  |  |  |  |  |  |  |  |  |
Tier 1 leverage ratio* | 10.5 | % |  | 10.5 | % |  | 10.7 | % |  | 10.4 | % |  | 9.8 | % |  | (5) | bp |  |  |  | 68 | bp |  |  |  |  |  |  |  |  |  |
Risk-weighted assets (“RWA”) (billions) | $ | 71.8 |  |  | $ | 71.5 |  |  | $ | 69.5 |  |  | $ | 69.2 |  |  | $ | 68.6 |  |  | $ | — |  |  | 1 | % |  | $ | 3 |  |  | 5 | % |  |  |  |  |  |  |  |
Total equity to total assets | 10.65 | % |  | 10.53 | % |  | 11.02 | % |  | 10.83 | % |  | 10.32 | % |  | 12 | bp |  |  |  | 33 | bp |  |  |  |  |  |  |  |  |  |
Tangible common equity/tangible assets (“TCE/TA”)4 | 7.76 | % |  | 7.71 | % |  | 7.41 | % |  | 7.12 | % |  | 6.64 | % |  | 5 | bp |  |  |  | 112 | bp |  |  |  |  |  |  |  |  |  |
Period-end shares outstanding (millions)9 | 559 |  |  | 559 |  |  | 538 |  |  | 537 |  |  | 537 |  |  | — |  |  | — | % |  | 22 |  |  | 4 | % |  |  |  |  |  |  |  |
Cash dividends declared per common share | $ | 0.15 |  |  | $ | 0.15 |  |  | $ | 0.15 |  |  | $ | 0.15 |  |  | $ | 0.15 |  |  | $ | — |  |  | — | % |  | $ | — |  |  | — | % |  |  |  |  |  |  |  |
Book value per common share | $ | 14.28 |  |  | $ | 14.58 |  |  | $ | 14.11 |  |  | $ | 13.48 |  |  | $ | 12.99 |  |  | $ | (0.30) |  |  | (2) | % |  | $ | 1.29 |  |  | 10 | % |  |  |  |  |  |  |  |
Tangible book value per common share 4 | $ | 11.22 |  |  | $ | 11.50 |  |  | $ | 10.89 |  |  | $ | 10.23 |  |  | $ | 9.72 |  |  | $ | (0.28) |  |  | (2) | % |  | $ | 1.50 |  |  | 15 | % |  |  |  |  |  |  |  |
SELECTED BALANCE SHEET DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans-to-deposit ratio (period-end balances) | 92.18 | % |  | 93.68 | % |  | 96.10 | % |  | 91.51 | % |  | 86.88 | % |  | (150) | bp |  |  |  | 530 | bp |  |  |  |  |  |  |  |  |  |
Loans-to-deposit ratio (average balances) | 92.35 | % |  | 97.52 | % |  | 93.33 | % |  | 88.73 | % |  | 82.99 | % |  | (517) | bp |  |  |  | 936 | bp |  |  |  |  |  |  |  |  |  |
Full-time equivalent associates | 7,340 |  |  | 7,327 |  |  | 7,282 |  |  | 7,477 |  |  | 7,569 |  |  | 13 |  |  | — | % |  | (229) |  |  | (3) | % |  |  |  |  |  |  |  |

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

|  |  |  |  |  |  |  |  |  |  | 3Q23 Change vs.
(In millions) | 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  | 2Q23 |  |  | 3Q22
Assets: |  |  |  |  |  |  |  |  |  |  | $ |  | % |  |  | $ |  | % |
Loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) | $ | 33,163 |  |  | $ | 33,116 |  |  | $ | 32,172 |  |  | $ | 31,780 |  |  | $ | 31,620 |  |  | $ | 47 |  |  | — | % |  |  | $ | 1,543 |  |  | 5 | % |
Commercial real estate | 14,121 |  |  | 13,891 |  |  | 13,397 |  |  | 13,228 |  |  | 13,021 |  |  | 230 |  |  | 2 |  |  |  | 1,100 |  |  | 8 |  |
Total Commercial | 47,283 |  |  | 47,006 |  |  | 45,570 |  |  | 45,008 |  |  | 44,641 |  |  | 277 |  |  | 1 |  |  |  | 2,642 |  |  | 6 |  |
Consumer real estate | 13,685 |  |  | 13,475 |  |  | 12,668 |  |  | 12,253 |  |  | 11,864 |  |  | 210 |  |  | 2 |  |  |  | 1,821 |  |  | 15 |  |
Credit card and other 5 | 809 |  |  | 813 |  |  | 807 |  |  | 840 |  |  | 849 |  |  | (4) |  |  | (1) |  |  |  | (40) |  |  | (5) |  |
Total Consumer | 14,494 |  |  | 14,289 |  |  | 13,475 |  |  | 13,093 |  |  | 12,712 |  |  | 205 |  |  | 1 |  |  |  | 1,782 |  |  | 14 |  |
Loans and leases, net of unearned income | 61,778 |  |  | 61,295 |  |  | 59,045 |  |  | 58,101 |  |  | 57,354 |  |  | 483 |  |  | 1 |  |  |  | 4,424 |  |  | 8 |  |
Loans held for sale | 613 |  |  | 789 |  |  | 650 |  |  | 590 |  |  | 680 |  |  | (176) |  |  | (22) |  |  |  | (67) |  |  | (10) |  |
Investment securities | 9,435 |  |  | 9,949 |  |  | 10,317 |  |  | 10,207 |  |  | 10,103 |  |  | (514) |  |  | (5) |  |  |  | (668) |  |  | (7) |  |
Trading securities | 1,231 |  |  | 1,059 |  |  | 1,122 |  |  | 1,375 |  |  | 1,421 |  |  | 172 |  |  | 16 |  |  |  | (190) |  |  | (13) |  |
Interest-bearing deposits with banks | 1,917 |  |  | 4,523 |  |  | 2,488 |  |  | 1,384 |  |  | 3,241 |  |  | (2,606) |  |  | (58) |  |  |  | (1,324) |  |  | (41) |  |
Federal funds sold and securities purchased under agreements to resell | 416 |  |  | 282 |  |  | 309 |  |  | 482 |  |  | 690 |  |  | 134 |  |  | 48 |  |  |  | (274) |  |  | (40) |  |
Total interest earning assets | 75,389 |  |  | 77,898 |  |  | 73,929 |  |  | 72,139 |  |  | 73,489 |  |  | (2,509) |  |  | (3) |  |  |  | 1,900 |  |  | 3 |  |
Cash and due from banks | 1,022 |  |  | 1,137 |  |  | 987 |  |  | 1,061 |  |  | 1,193 |  |  | (115) |  |  | (10) |  |  |  | (171) |  |  | (14) |  |
Goodwill and other intangible assets, net | 1,709 |  |  | 1,720 |  |  | 1,732 |  |  | 1,744 |  |  | 1,757 |  |  | (11) |  |  | (1) |  |  |  | (48) |  |  | (3) |  |
Premises and equipment, net | 590 |  |  | 595 |  |  | 603 |  |  | 612 |  |  | 622 |  |  | (5) |  |  | (1) |  |  |  | (32) |  |  | (5) |  |
Allowance for loan and lease losses | (760) |  |  | (737) |  |  | (715) |  |  | (685) |  |  | (664) |  |  | (23) |  |  | (3) |  |  |  | (96) |  |  | (14) |  |
Other assets | 4,584 |  |  | 4,458 |  |  | 4,193 |  |  | 4,082 |  |  | 3,903 |  |  | 126 |  |  | 3 |  |  |  | 681 |  |  | 17 |  |
Total assets | $ | 82,533 |  |  | $ | 85,071 |  |  | $ | 80,729 |  |  | $ | 78,953 |  |  | $ | 80,299 |  |  | $ | (85,071) |  |  | (100) | % |  |  | $ | (80,299) |  |  | (100) | % |
Liabilities and Shareholders' Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings | $ | 25,590 |  |  | $ | 23,733 |  |  | $ | 21,346 |  |  | $ | 21,971 |  |  | $ | 22,800 |  |  | $ | 1,857 |  |  | 8 | % |  |  | $ | 2,790 |  |  | 12 | % |
Time deposits | 7,783 |  |  | 8,279 |  |  | 3,777 |  |  | 2,887 |  |  | 2,671 |  |  | (496) |  |  | (6) |  |  |  | 5,112 |  |  | NM |
Other interest-bearing deposits | 15,817 |  |  | 14,620 |  |  | 15,184 |  |  | 15,165 |  |  | 14,730 |  |  | 1,197 |  |  | 8 |  |  |  | 1,087 |  |  | 7 |  |
Total interest-bearing deposits | 49,190 |  |  | 46,632 |  |  | 40,306 |  |  | 40,023 |  |  | 40,202 |  |  | 2,558 |  |  | 5 |  |  |  | 8,988 |  |  | 22 |  |
Trading liabilities | 366 |  |  | 174 |  |  | 144 |  |  | 335 |  |  | 383 |  |  | 192 |  |  | 110 |  |  |  | (17) |  |  | (5) |  |
Short-term borrowings | 2,507 |  |  | 6,946 |  |  | 6,484 |  |  | 2,506 |  |  | 1,416 |  |  | (4,439) |  |  | (64) |  |  |  | 1,091 |  |  | 77 |  |
Term borrowings | 1,157 |  |  | 1,156 |  |  | 1,605 |  |  | 1,597 |  |  | 1,597 |  |  | 1 |  |  | — |  |  |  | (440) |  |  | (28) |  |
Total interest-bearing liabilities | 53,220 |  |  | 54,908 |  |  | 48,540 |  |  | 44,461 |  |  | 43,598 |  |  | (1,688) |  |  | (3) |  |  |  | 9,622 |  |  | 22 |  |
Noninterest-bearing deposits | 17,825 |  |  | 18,801 |  |  | 21,134 |  |  | 23,466 |  |  | 25,813 |  |  | (976) |  |  | (5) |  |  |  | (7,988) |  |  | (31) |  |
Other liabilities | 2,694 |  |  | 2,403 |  |  | 2,161 |  |  | 2,480 |  |  | 2,605 |  |  | 291 |  |  | 12 |  |  |  | 89 |  |  | 3 |  |
Total liabilities | 73,740 |  |  | 76,112 |  |  | 71,835 |  |  | 70,406 |  |  | 72,016 |  |  | (2,372) |  |  | (3) |  |  |  | 1,724 |  |  | 2 |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock | 520 |  |  | 520 |  |  | 1,014 |  |  | 1,014 |  |  | 1,014 |  |  | — |  |  | — |  |  |  | (494) |  |  | (49) |  |
Common stock | 349 |  |  | 349 |  |  | 336 |  |  | 336 |  |  | 335 |  |  | — |  |  | — |  |  |  | 14 |  |  | 4 |  |
Capital surplus | 5,337 |  |  | 5,324 |  |  | 4,863 |  |  | 4,840 |  |  | 4,812 |  |  | 13 |  |  | — |  |  |  | 525 |  |  | 11 |  |
Retained earnings | 3,874 |  |  | 3,830 |  |  | 3,595 |  |  | 3,430 |  |  | 3,254 |  |  | 44 |  |  | 1 |  |  |  | 620 |  |  | 19 |  |
Accumulated other comprehensive loss, net | (1,582) |  |  | (1,359) |  |  | (1,208) |  |  | (1,367) |  |  | (1,427) |  |  | (223) |  |  | (16) |  |  |  | (155) |  |  | (11) |  |
Combined shareholders' equity | 8,498 |  |  | 8,664 |  |  | 8,599 |  |  | 8,251 |  |  | 7,987 |  |  | (166) |  |  | (2) |  |  |  | 511 |  |  | 6 |  |
Noncontrolling interest | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | — |  |  | — |  |  |  | — |  |  | — |  |
Total shareholders' equity | 8,794 |  |  | 8,960 |  |  | 8,895 |  |  | 8,547 |  |  | 8,283 |  |  | (166) |  |  | (2) |  |  |  | 511 |  |  | 6 |  |
Total liabilities and shareholders' equity | $ | 82,533 |  |  | $ | 85,071 |  |  | $ | 80,729 |  |  | $ | 78,953 |  |  | $ | 80,299 |  |  | $ | (2,538) |  |  | (3) | % |  |  | $ | 2,234 |  |  | 3 | % |
Memo: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total deposits | $ | 67,015 |  |  | $ | 65,433 |  |  | $ | 61,440 |  |  | $ | 63,489 |  |  | $ | 66,014 |  |  | $ | 1,582 |  |  | 2 | % |  |  | $ | 1,001 |  |  | 2 | % |
Loans to mortgage companies | $ | 2,237 |  |  | $ | 2,691 |  |  | $ | 2,040 |  |  | $ | 2,258 |  |  | $ | 2,710 |  |  | $ | (454) |  |  | (17) | % |  |  | $ | (473) |  |  | (17) | % |
Unfunded Loan Commitments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 22,063 |  |  | $ | 22,134 |  |  | $ | 21,844 |  |  | $ | 22,875 |  |  | $ | 23,778 |  |  | $ | (72) |  |  | — | % |  |  | $ | (1,715) |  |  | (7) | % |
Consumer | $ | 4,432 |  |  | $ | 4,400 |  |  | $ | 4,404 |  |  | $ | 4,329 |  |  | $ | 4,248 |  |  | $ | 31 |  |  | 1 | % |  |  | $ | 183 |  |  | 4 | % |

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

CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 3Q23 Change vs. |  |  |  |  |  |
(In millions) | 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  | 2Q23 |  | 3Q22 |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |  |  |  |  |  |  |  |
Loans and leases: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) | $ | 33,042 |  |  | $ | 32,423 |  |  | $ | 31,558 |  |  | $ | 31,562 |  |  | $ | 31,120 |  |  | $ | 618 |  |  | 2 | % |  | $ | 1,921 |  |  | 6 | % |  |  |  |  |  |  |  |
Commercial real estate | 13,999 |  |  | 13,628 |  |  | 13,290 |  |  | 13,095 |  |  | 12,926 |  |  | 372 |  |  | 3 |  |  | 1,073 |  |  | 8 |  |  |  |  |  |  |  |  |
Total Commercial | 47,041 |  |  | 46,051 |  |  | 44,848 |  |  | 44,657 |  |  | 44,046 |  |  | 990 |  |  | 2 |  |  | 2,995 |  |  | 7 |  |  |  |  |  |  |  |  |
Consumer real estate | 13,575 |  |  | 13,058 |  |  | 12,401 |  |  | 12,049 |  |  | 11,633 |  |  | 517 |  |  | 4 |  |  | 1,942 |  |  | 17 |  |  |  |  |  |  |  |  |
Credit card and other 5 | 816 |  |  | 815 |  |  | 825 |  |  | 858 |  |  | 864 |  |  | 1 |  |  | — |  |  | (47) |  |  | (5) |  |  |  |  |  |  |  |  |
Total Consumer | 14,391 |  |  | 13,873 |  |  | 13,226 |  |  | 12,907 |  |  | 12,496 |  |  | 518 |  |  | 4 |  |  | 1,895 |  |  | 15 |  |  |  |  |  |  |  |  |
Loans and leases, net of unearned income | 61,432 |  |  | 59,924 |  |  | 58,074 |  |  | 57,564 |  |  | 56,543 |  |  | 1,508 |  |  | 3 |  |  | 4,889 |  |  | 9 |  |  |  |  |  |  |  |  |
Loans held-for-sale | 782 |  |  | 731 |  |  | 596 |  |  | 597 |  |  | 761 |  |  | 51 |  |  | 7 |  |  | 21 |  |  | 3 |  |  |  |  |  |  |  |  |
Investment securities | 9,811 |  |  | 10,192 |  |  | 10,263 |  |  | 10,132 |  |  | 10,315 |  |  | (381) |  |  | (4) |  |  | (504) |  |  | (5) |  |  |  |  |  |  |  |  |
Trading securities | 1,099 |  |  | 1,110 |  |  | 1,284 |  |  | 1,311 |  |  | 1,342 |  |  | (11) |  |  | (1) |  |  | (243) |  |  | (18) |  |  |  |  |  |  |  |  |
Interest-bearing deposits with banks | 2,867 |  |  | 3,110 |  |  | 1,468 |  |  | 2,618 |  |  | 6,341 |  |  | (243) |  |  | (8) |  |  | (3,474) |  |  | (55) |  |  |  |  |  |  |  |  |
Federal funds sold and securities purchased under agreements to resell | 315 |  |  | 279 |  |  | 392 |  |  | 583 |  |  | 661 |  |  | 36 |  |  | 13 |  |  | (346) |  |  | (52) |  |  |  |  |  |  |  |  |
Total interest earning assets | 76,306 |  |  | 75,346 |  |  | 72,076 |  |  | 72,805 |  |  | 75,963 |  |  | 960 |  |  | 1 |  |  | 343 |  |  | — |  |  |  |  |  |  |  |  |
Cash and due from banks | 997 |  |  | 1,024 |  |  | 1,035 |  |  | 1,118 |  |  | 1,246 |  |  | (27) |  |  | (3) |  |  | (249) |  |  | (20) |  |  |  |  |  |  |  |  |
Goodwill and other intangibles assets, net | 1,714 |  |  | 1,726 |  |  | 1,738 |  |  | 1,750 |  |  | 1,767 |  |  | (12) |  |  | (1) |  |  | (53) |  |  | (3) |  |  |  |  |  |  |  |  |
Premises and equipment, net | 592 |  |  | 598 |  |  | 607 |  |  | 616 |  |  | 629 |  |  | (6) |  |  | (1) |  |  | (37) |  |  | (6) |  |  |  |  |  |  |  |  |
Allowances for loan and lease losses | (766) |  |  | (728) |  |  | (692) |  |  | (675) |  |  | (639) |  |  | (38) |  |  | (5) |  |  | (127) |  |  | (20) |  |  |  |  |  |  |  |  |
Other assets | 4,377 |  |  | 4,338 |  |  | 4,076 |  |  | 3,907 |  |  | 3,585 |  |  | 39 |  |  | 1 |  |  | 792 |  |  | 22 |  |  |  |  |  |  |  |  |
Total assets | $ | 83,220 |  |  | $ | 82,304 |  |  | $ | 78,841 |  |  | $ | 79,521 |  |  | $ | 82,551 |  |  | $ | 916 |  |  | 1 | % |  | $ | 669 |  |  | 1 | % |  |  |  |  |  |  |  |
Liabilities and shareholders' equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings | $ | 24,963 |  |  | $ | 21,542 |  |  | $ | 21,824 |  |  | $ | 22,477 |  |  | $ | 23,569 |  |  | $ | 3,421 |  |  | 16 | % |  | $ | 1,394 |  |  | 6 | % |  |  |  |  |  |  |  |
Time deposits | 8,087 |  |  | 5,520 |  |  | 3,336 |  |  | 2,720 |  |  | 2,759 |  |  | 2,567 |  |  | 47 |  |  | 5,328 |  |  | NM |  |  |  |  |  |  |  |
Other interest-bearing deposits | 15,329 |  |  | 14,719 |  |  | 14,790 |  |  | 14,658 |  |  | 15,102 |  |  | 610 |  |  | 4 |  |  | 227 |  |  | 2 |  |  |  |  |  |  |  |  |
Total interest-bearing deposits | 48,379 |  |  | 41,781 |  |  | 39,950 |  |  | 39,855 |  |  | 41,431 |  |  | 6,598 |  |  | 16 |  |  | 6,948 |  |  | 17 |  |  |  |  |  |  |  |  |
Trading liabilities | 276 |  |  | 216 |  |  | 324 |  |  | 353 |  |  | 372 |  |  | 60 |  |  | 28 |  |  | (96) |  |  | (26) |  |  |  |  |  |  |  |  |
Short-term borrowings | 3,760 |  |  | 7,999 |  |  | 3,695 |  |  | 1,821 |  |  | 1,711 |  |  | (4,239) |  |  | (53) |  |  | 2,049 |  |  | 120 |  |  |  |  |  |  |  |  |
Term borrowings | 1,161 |  |  | 1,428 |  |  | 1,602 |  |  | 1,597 |  |  | 1,598 |  |  | (267) |  |  | (19) |  |  | (437) |  |  | (27) |  |  |  |  |  |  |  |  |
Total interest-bearing liabilities | 53,575 |  |  | 51,424 |  |  | 45,572 |  |  | 43,626 |  |  | 45,112 |  |  | 2,151 |  |  | 4 |  |  | 8,463 |  |  | 19 |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits | 18,145 |  |  | 19,664 |  |  | 22,274 |  |  | 25,021 |  |  | 26,701 |  |  | (1,519) |  |  | (8) |  |  | (8,556) |  |  | (32) |  |  |  |  |  |  |  |  |
Other liabilities | 2,522 |  |  | 2,187 |  |  | 2,289 |  |  | 2,459 |  |  | 2,068 |  |  | 335 |  |  | 15 |  |  | 454 |  |  | 22 |  |  |  |  |  |  |  |  |
Total liabilities | 74,242 |  |  | 73,275 |  |  | 70,134 |  |  | 71,106 |  |  | 73,882 |  |  | 967 |  |  | 1 |  |  | 360 |  |  | — |  |  |  |  |  |  |  |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock | 520 |  |  | 986 |  |  | 1,014 |  |  | 1,014 |  |  | 1,014 |  |  | (466) |  |  | (47) |  |  | (494) |  |  | (49) |  |  |  |  |  |  |  |  |
Common stock | 349 |  |  | 337 |  |  | 336 |  |  | 336 |  |  | 335 |  |  | 12 |  |  | 4 |  |  | 14 |  |  | 4 |  |  |  |  |  |  |  |  |
Capital surplus | 5,330 |  |  | 4,891 |  |  | 4,851 |  |  | 4,826 |  |  | 4,802 |  |  | 439 |  |  | 9 |  |  | 528 |  |  | 11 |  |  |  |  |  |  |  |  |
Retained earnings | 3,861 |  |  | 3,759 |  |  | 3,518 |  |  | 3,358 |  |  | 3,175 |  |  | 102 |  |  | 3 |  |  | 686 |  |  | 22 |  |  |  |  |  |  |  |  |
Accumulated other comprehensive loss, net | (1,378) |  |  | (1,241) |  |  | (1,307) |  |  | (1,414) |  |  | (953) |  |  | (137) |  |  | (11) |  |  | (425) |  |  | (45) |  |  |  |  |  |  |  |  |
Combined shareholders' equity | 8,683 |  |  | 8,734 |  |  | 8,411 |  |  | 8,119 |  |  | 8,373 |  |  | (51) |  |  | (1) |  |  | 310 |  |  | 4 |  |  |  |  |  |  |  |  |
Noncontrolling interest | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |  |  |
Total shareholders' equity | 8,978 |  |  | 9,029 |  |  | 8,707 |  |  | 8,415 |  |  | 8,669 |  |  | (51) |  |  | (1) |  |  | 309 |  |  | 4 |  |  |  |  |  |  |  |  |
Total liabilities and shareholders' equity | $ | 83,220 |  |  | $ | 82,304 |  |  | $ | 78,841 |  |  | $ | 79,521 |  |  | $ | 82,551 |  |  | $ | 916 |  |  | 1 | % |  | $ | 669 |  |  | 1 | % |  |  |  |  |  |  |  |
Memo: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total deposits | $ | 66,523 |  |  | $ | 61,445 |  |  | $ | 62,224 |  |  | $ | 64,876 |  |  | $ | 68,133 |  |  | $ | 5,078 |  |  | 8 | % |  | $ | (1,610) |  |  | (2) | % |  |  |  |  |  |  |  |
Loans to mortgage companies | $ | 2,353 |  |  | $ | 2,262 |  |  | $ | 1,875 |  |  | $ | 2,299 |  |  | $ | 2,917 |  |  | $ | 90 |  |  | 4 | % |  | $ | (564) |  |  | (19) | % |  |  |  |  |  |  |  |

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 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3Q23 Change vs. |  |  |  |  |  |  |  |
| 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  | 2Q23 |  | 3Q22 |  |  |  |  |  |
(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 | $ | 779 |  | 6.58 | % |  | $ | 727 |  | 6.34 | % |  | $ | 668 |  | 6.04 | % |  | $ | 607 |  | 5.40 | % |  | $ | 496 |  | 4.47 | % |  | $ | 52 |  | 7 | % |  | $ | 283 |  | 57 | % |  |  |  |  |  |  |  |  |
Consumer | 165 |  | 4.55 |  |  | 153 |  | 4.39 |  |  | 141 |  | 4.26 |  |  | 134 |  | 4.14 |  |  | 124 |  | 3.94 |  |  | 12 |  | 8 |  |  | 41 |  | 33 |  |  |  |  |  |  |  |  |  |
Loans and leases, net of unearned income | 944 |  | 6.10 |  |  | 880 |  | 5.89 |  |  | 809 |  | 5.64 |  |  | 742 |  | 5.12 |  |  | 619 |  | 4.35 |  |  | 64 |  | 7 |  |  | 325 |  | 53 |  |  |  |  |  |  |  |  |  |
Loans held-for-sale | 15 |  | 7.88 |  |  | 14 |  | 7.58 |  |  | 11 |  | 7.08 |  |  | 9 |  | 6.34 |  |  | 9 |  | 4.91 |  |  | 1 |  | 7 |  |  | 6 |  | 67 |  |  |  |  |  |  |  |  |  |
Investment securities | 62 |  | 2.54 |  |  | 63 |  | 2.49 |  |  | 63 |  | 2.45 |  |  | 61 |  | 2.41 |  |  | 55 |  | 2.14 |  |  | (1) |  | (2) |  |  | 7 |  | 13 |  |  |  |  |  |  |  |  |  |
Trading securities | 19 |  | 7.03 |  |  | 19 |  | 6.69 |  |  | 20 |  | 6.21 |  |  | 19 |  | 5.79 |  |  | 15 |  | 4.55 |  |  | — |  | — |  |  | 4 |  | 27 |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits with banks | 39 |  | 5.34 |  |  | 40 |  | 5.13 |  |  | 17 |  | 4.60 |  |  | 24 |  | 3.61 |  |  | 34 |  | 2.15 |  |  | (1) |  | (3) |  |  | 5 |  | 15 |  |  |  |  |  |  |  |  |  |
Federal funds sold and securities purchased under agreements | 4 |  | 5.06 |  |  | 3 |  | 4.85 |  |  | 4 |  | 4.35 |  |  | 5 |  | 3.48 |  |  | 2 |  | 2.04 |  |  | 1 |  | 33 |  |  | 2 |  | 100 |  |  |  |  |  |  |  |  |  |
Interest income | $ | 1,084 |  | 5.64 | % |  | $ | 1,019 |  | 5.42 | % |  | $ | 923 |  | 5.18 | % |  | $ | 860 |  | 4.70 | % |  | $ | 737 |  | 3.86 | % |  | $ | 65 |  | 6 | % |  | $ | 347 |  | 47 | % |  |  |  |  |  |  |  |  |
Interest bearing liabilities/Interest expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings | $ | 219 |  | 3.48 | % |  | $ | 141 |  | 2.63 | % |  | $ | 96 |  | 1.79 | % |  | $ | 67 |  | 1.19 | % |  | $ | 18 |  | 0.31 | % |  | $ | 78 |  | 55 | % |  | $ | 201 |  | NM |  |  |  |  |  |  |  |  |
Time deposits | 89 |  | 4.35 |  |  | 49 |  | 3.56 |  |  | 16 |  | 1.96 |  |  | 6 |  | 0.90 |  |  | 2 |  | 0.50 |  |  | 40 |  | 82 |  |  | 87 |  | NM |  |  |  |  |  |  |  |  |
Other interest-bearing deposits | 102 |  | 2.64 |  |  | 75 |  | 2.06 |  |  | 58 |  | 1.59 |  |  | 39 |  | 1.05 |  |  | 21 |  | 0.56 |  |  | 27 |  | 36 |  |  | 81 |  | NM |  |  |  |  |  |  |  |  |
Total interest-bearing deposits | 409 |  | 3.36 |  |  | 265 |  | 2.55 |  |  | 171 |  | 1.73 |  |  | 112 |  | 1.12 |  |  | 42 |  | 0.41 |  |  | 144 |  | 54 |  |  | 367 |  | NM |  |  |  |  |  |  |  |  |
Trading liabilities | 3 |  | 4.20 |  |  | 2 |  | 3.82 |  |  | 3 |  | 3.83 |  |  | 3 |  | 3.59 |  |  | 3 |  | 3.03 |  |  | 1 |  | 50 |  |  | — |  | — |  |  |  |  |  |  |  |  |  |
Short-term borrowings | 46 |  | 4.80 |  |  | 99 |  | 4.94 |  |  | 38 |  | 4.16 |  |  | 13 |  | 2.85 |  |  | 7 |  | 2.22 |  |  | (53) |  | (54) |  |  | 39 |  | NM |  |  |  |  |  |  |  |  |
Term borrowings | 17 |  | 5.82 |  |  | 19 |  | 5.21 |  |  | 20 |  | 4.98 |  |  | 19 |  | 4.81 |  |  | 18 |  | 4.57 |  |  | (2) |  | (11) |  |  | (1) |  | (6) |  |  |  |  |  |  |  |  |  |
Interest expense | 475 |  | 3.52 |  |  | 385 |  | 3.00 |  |  | 232 |  | 2.06 |  |  | 148 |  | 1.35 |  |  | 71 |  | 0.63 |  |  | 90 |  | 23 |  |  | 404 |  | NM |  |  |  |  |  |  |  |  |
Net interest income - tax equivalent basis | 609 |  | 2.12 |  |  | 635 |  | 2.42 |  |  | 691 |  | 3.11 |  |  | 712 |  | 3.35 |  |  | 666 |  | 3.23 |  |  | (26) |  | (4) |  |  | (57) |  | (9) |  |  |  |  |  |  |  |  |  |
Fully taxable equivalent adjustment | (4) |  | 1.05 |  |  | (4) |  | 0.96 |  |  | (4) |  | 0.76 |  |  | (4) |  | 0.54 |  |  | (4) |  | 0.25 |  |  | — |  | — |  |  | — |  | — |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 605 |  | 3.17 | % |  | $ | 631 |  | 3.38 | % |  | $ | 688 |  | 3.88 | % |  | $ | 709 |  | 3.89 | % |  | $ | 662 |  | 3.48 | % |  | $ | (26) |  | (4) | % |  | $ | (57) |  | (9) | % |  |  |  |  |  |  |  |  |
Memo: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total loan yield |  | 6.10 | % |  |  | 5.89 | % |  |  | 5.64 | % |  |  | 5.12 | % |  |  | 4.35 | % |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total deposit cost |  | 2.44 | % |  |  | 1.73 | % |  |  | 1.11 | % |  |  | 0.69 | % |  |  | 0.25 | % |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total funding cost |  | 2.63 | % |  |  | 2.17 | % |  |  | 1.38 | % |  |  | 0.85 | % |  |  | 0.39 | % |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average loans and leases, net of unearned income |  | $ | 61,432 |  |  |  | $ | 59,924 |  |  |  | $ | 58,074 |  |  |  | $ | 57,564 |  |  |  | $ | 56,543 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average deposits |  | 66,523 |  |  | 61,445 |  |  | 62,224 |  |  | 64,876 |  |  | 68,133 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average funded liabilities |  | 71,720 |  |  | 71,088 |  |  | 67,846 |  |  | 68,647 |  |  | 71,814 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

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 |  | 3Q23 change vs. |
(In millions, except ratio data) |  | 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  | 2Q23 |  | 3Q22 |
|  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Nonperforming loans and leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | 123 |  |  | $ | 184 |  |  | $ | 204 |  |  | $ | 153 |  |  | $ | 116 |  |  | $ | (61) |  |  | (33) | % |  | $ | 6 |  |  | 6 | % |
Commercial real estate |  | 125 |  |  | 73 |  |  | 63 |  |  | 9 |  |  | 10 |  |  | 52 |  |  | 71 |  |  | 114 |  |  | NM |
Consumer real estate |  | 145 |  |  | 144 |  |  | 155 |  |  | 152 |  |  | 163 |  |  | 1 |  |  | — |  |  | (18) |  |  | (11) |  |
Credit card and other 5 |  | 2 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 3 |  |  | — |  |  | (7) |  |  | (1) |  |  | (22) |  |
Total nonperforming loans and leases |  | $ | 394 |  |  | $ | 402 |  |  | $ | 424 |  |  | $ | 316 |  |  | $ | 292 |  |  | $ | (8) |  |  | (2) | % |  | $ | 102 |  |  | 35 | % |
Asset Quality Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonperforming loans and leases to loans and leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 0.37 | % |  | 0.55 | % |  | 0.63 | % |  | 0.48 | % |  | 0.37 | % |  |  |  |  |  |  |  |  |
Commercial real estate |  | 0.88 |  |  | 0.52 |  |  | 0.47 |  |  | 0.07 |  |  | 0.08 |  |  |  |  |  |  |  |  |  |
Consumer real estate |  | 1.06 |  |  | 1.07 |  |  | 1.22 |  |  | 1.24 |  |  | 1.37 |  |  |  |  |  |  |  |  |  |
Credit card and other 5 |  | 0.26 |  |  | 0.27 |  |  | 0.29 |  |  | 0.27 |  |  | 0.31 |  |  |  |  |  |  |  |  |  |
Total nonperforming loans and leases to loans and leases |  | 0.64 | % |  | 0.66 | % |  | 0.72 | % |  | 0.54 | % |  | 0.51 | % |  |  |  |  |  |  |  |  |

Numbers may not foot due to rounding.

CONSOLIDATED LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of |  | 3Q23 change vs. |
(In millions) |  | 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  | 2Q23 |  | 3Q22 |
|  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Loans and leases 90 days or more past due and accruing |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | 3 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 11 |  |  | $ | 1 |  |  | $ | 2 |  |  | NM |  | $ | 1 |  |  | 109 | % |
Commercial real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Consumer real estate |  | 12 |  |  | 8 |  |  | 7 |  |  | 18 |  |  | 17 |  |  | 4 |  |  | 47 |  |  | (5) |  |  | (31) |  |
Credit card and other 5 |  | 3 |  |  | 5 |  |  | 5 |  |  | 3 |  |  | 6 |  |  | (2) |  |  | (47) |  |  | (3) |  |  | (55) |  |
Total loans and leases 90 days or more past due and accruing |  | $ | 17 |  |  | $ | 14 |  |  | $ | 12 |  |  | $ | 33 |  |  | $ | 24 |  |  | $ | 3 |  |  | 24 | % |  | $ | (7) |  |  | (30) | % |

Numbers may not foot due to rounding.
14

CONSOLIDATED NET CHARGE-OFFS (RECOVERIES)
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of |  | 3Q23 change vs. |
(In millions, except ratio data) |  | 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  | 2Q23 |  | 3Q22 |
Charge-off, Recoveries and Related Ratios |  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Gross Charge-offs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) * |  | $ | 92 |  |  | $ | 19 |  |  | $ | 14 |  |  | $ | 24 |  |  | $ | 13 |  |  | $ | 73 |  |  | NM |  | $ | 79 |  |  | NM |
Commercial real estate |  | 5 |  |  | 8 |  |  | 2 |  |  | — |  |  | 1 |  |  | (4) |  |  | (43) |  |  | 4 |  |  | NM |
Consumer real estate |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | — |  |  | (11) |  |  | — |  |  | (36) |  |
Credit card and other 5 |  | 7 |  |  | 5 |  |  | 5 |  |  | 7 |  |  | 7 |  |  | 2 |  |  | 51 |  |  | — |  |  | 3 |  |
Total gross charge-offs |  | $ | 104 |  |  | $ | 33 |  |  | $ | 22 |  |  | $ | 32 |  |  | $ | 21 |  |  | $ | 71 |  |  | NM |  | $ | 83 |  |  | NM |
Gross Recoveries |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | $ | (5) |  |  | $ | (5) |  |  | $ | (2) |  |  | $ | (3) |  |  | $ | (2) |  |  | $ | — |  |  | (7) | % |  | $ | (3) |  |  | NM |
Commercial real estate |  | — |  |  | (1) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 42 |  |  | — |  |  | NM |
Consumer real estate |  | (2) |  |  | (3) |  |  | (2) |  |  | (2) |  |  | (6) |  |  | 1 |  |  | 19 |  |  | 4 |  |  | 64 |  |
Credit card and other 5 |  | (1) |  |  | (1) |  |  | (1) |  |  | (1) |  |  | (1) |  |  | — |  |  | 4 |  |  | — |  |  | 10 |  |
Total gross recoveries |  | $ | (9) |  |  | $ | (9) |  |  | $ | (6) |  |  | $ | (6) |  |  | $ | (9) |  |  | $ | 1 |  |  | 6 | % |  | $ | — |  |  | 5 | % |
Net Charge-offs (Recoveries) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) * |  | $ | 86 |  |  | $ | 14 |  |  | $ | 12 |  |  | $ | 21 |  |  | $ | 11 |  |  | $ | 72 |  |  | NM |  | $ | 75 |  |  | NM |
Commercial real estate |  | 4 |  |  | 8 |  |  | 2 |  |  | — |  |  | — |  |  | (3) |  |  | (43) |  |  | 4 |  |  | NM |
Consumer real estate |  | (2) |  |  | (2) |  |  | (2) |  |  | (2) |  |  | (5) |  |  | — |  |  | 22 |  |  | 4 |  |  | 70 |  |
Credit card and other 5 |  | 6 |  |  | 3 |  |  | 4 |  |  | 6 |  |  | 5 |  |  | 2 |  |  | 70 |  |  | — |  |  | 6 |  |
Total net charge-offs |  | $ | 95 |  |  | $ | 23 |  |  | $ | 16 |  |  | $ | 26 |  |  | $ | 12 |  |  | $ | 72 |  |  | NM |  | $ | 83 |  |  | NM |
Annualized Net Charge-off (Recovery) Rates |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) * |  | 1.04 | % |  | 0.18 | % |  | 0.15 | % |  | 0.27 | % |  | 0.14 | % |  |  |  |  |  |  |  |  |
Commercial real estate |  | 0.12 |  |  | 0.23 |  |  | 0.05 |  |  | — |  |  | 0.01 |  |  |  |  |  |  |  |  |  |
Consumer real estate |  | (0.05) |  |  | (0.06) |  |  | (0.05) |  |  | (0.05) |  |  | (0.17) |  |  |  |  |  |  |  |  |  |
Credit card and other 5 |  | 2.77 |  |  | 1.65 |  |  | 1.93 |  |  | 2.76 |  |  | 2.46 |  |  |  |  |  |  |  |  |  |
Total loans and leases |  | 0.61 | % |  | 0.16 | % |  | 0.11 | % |  | 0.18 | % |  | 0.08 | % |  |  |  |  |  |  |  |  |

Numbers may not foot due to rounding.
•3Q23 increase driven by a single credit from a company in bankruptcy.
15

CONSOLIDATED ALLOWANCE FOR LOAN AND LEASE LOSSES AND RESERVE FOR UNFUNDED COMMITMENTS |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of |  | 3Q23 Change vs. |
(In millions) |  | 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  | 2Q23 |  | 3Q22 |
Summary of Changes in the Components of the Allowance For Credit Losses |  |  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |
Allowance for loan and lease losses - beginning |  | $ | 737 |  |  | $ | 715 |  |  | $ | 685 |  |  | $ | 664 |  |  | $ | 624 |  |  | $ | 22 |  |  | 3 | % |  | $ | 113 |  |  | 18 | % |
Cumulative effect of change in accounting principle: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Commercial real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Consumer real estate |  | — |  |  | — |  |  | (7) |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Credit card and other 5 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Total cumulative effect of change in accounting principles |  | — |  |  | — |  |  | (6) |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Allowance for loan and lease losses - beginning, adjusted |  | $ | 737 |  |  | $ | 715 |  |  | $ | 679 |  |  | $ | 664 |  |  | $ | 624 |  |  | $ | 22 |  |  | 3 | % |  | $ | 113 |  |  | 18 | % |
Charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) * |  | (92) |  |  | (19) |  |  | (14) |  |  | (24) |  |  | (13) |  |  | (73) |  |  | NM |  | (79) |  |  | NM |
Commercial real estate |  | (5) |  |  | (8) |  |  | (2) |  |  | — |  |  | (1) |  |  | 4 |  |  | 43 |  |  | (4) |  |  | NM |
Consumer real estate |  | (1) |  |  | (1) |  |  | (1) |  |  | (1) |  |  | (1) |  |  | — |  |  | 11 |  |  | — |  |  | 36 |  |
Credit card and other 5 |  | (7) |  |  | (5) |  |  | (5) |  |  | (7) |  |  | (7) |  |  | (2) |  |  | (51) |  |  | — |  |  | (3) |  |
Total charge-offs |  | (104) |  |  | (33) |  |  | (22) |  |  | (32) |  |  | (21) |  |  | (71) |  |  | NM |  | (83) |  |  | NM |
Recoveries: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 5 |  |  | 5 |  |  | 2 |  |  | 3 |  |  | 2 |  |  | — |  |  | 7 |  |  | 3 |  |  | NM |
Commercial real estate |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (42) |  |  | — |  |  | NM |
Consumer real estate |  | 2 |  |  | 3 |  |  | 2 |  |  | 2 |  |  | 6 |  |  | (1) |  |  | (19) |  |  | (4) |  |  | (65) |  |
Credit card and other 5 |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | — |  |  | (4) |  |  | — |  |  | (10) |  |
Total Recoveries |  | 9 |  |  | 9 |  |  | 6 |  |  | 6 |  |  | 9 |  |  | (1) |  |  | (6) |  |  | — |  |  | (3) |  |
Provision for loan and lease losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) * |  | 96 |  |  | 15 |  |  | 27 |  |  | 35 |  |  | 32 |  |  | 81 |  |  | NM |  | 65 |  |  | NM |
Commercial real estate |  | 14 |  |  | 16 |  |  | 6 |  |  | (2) |  |  | 8 |  |  | (2) |  |  | (15) |  |  | 6 |  |  | 79 |  |
Consumer real estate |  | 5 |  |  | 10 |  |  | 15 |  |  | 5 |  |  | 5 |  |  | (6) |  |  | (54) |  |  | (1) |  |  | (8) |  |
Credit card and other 5 |  | 3 |  |  | 3 |  |  | 4 |  |  | 9 |  |  | 7 |  |  | — |  |  | 4 |  |  | (4) |  |  | (58) |  |
Total provision for loan and lease losses: |  | 118 |  |  | 45 |  |  | 52 |  |  | 46 |  |  | 52 |  |  | 73 |  |  | NM |  | 66 |  |  | 127 |  |
Allowance for loan and lease losses - ending |  | $ | 760 |  |  | $ | 737 |  |  | $ | 715 |  |  | $ | 685 |  |  | $ | 664 |  |  | $ | 23 |  |  | 3 | % |  | $ | 96 |  |  | 14 | % |
Reserve for unfunded commitments - beginning |  | $ | 90 |  |  | $ | 85 |  |  | $ | 87 |  |  | $ | 88 |  |  | $ | 80 |  |  | $ | 5 |  |  | 6 | % |  | $ | 10 |  |  | 12 | % |
Cumulative effect of change in accounting principle |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Acquired reserve for unfunded commitments |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | NM |  | — |  |  | NM |
Provision for unfunded commitments |  | (8) |  |  | 5 |  |  | (2) |  |  | (1) |  |  | 8 |  |  | (13) |  |  | NM |  | (16) |  |  | NM |
Reserve for unfunded commitments - ending |  | $ | 82 |  |  | $ | 90 |  |  | $ | 85 |  |  | $ | 87 |  |  | $ | 88 |  |  | $ | (8) |  |  | (9) | % |  | $ | (6) |  |  | (7) | % |
Total allowance for credit losses- ending |  | $ | 842 |  |  | $ | 827 |  |  | $ | 800 |  |  | $ | 771 |  |  | $ | 752 |  |  | $ | 15 |  |  | 2 | % |  | $ | 90 |  |  | 12 | % |

Numbers may not foot due to rounding.
•3Q23 increase driven by a single credit from a company in bankruptcy.
16

CONSOLIDATED ASSET QUALITY RATIOS - ALLOWANCE FOR LOAN AND LEASE LOSSES |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |
|  | As of |
|  | 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |
Allowance for loans and lease losses to loans and leases |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 1.01 | % |  | 0.98 | % |  | 1.01 | % |  | 0.97 | % |  | 0.93 | % |
Commercial real estate |  | 1.19 | % |  | 1.14 | % |  | 1.12 | % |  | 1.10 | % |  | 1.14 | % |
Consumer real estate |  | 1.67 | % |  | 1.64 | % |  | 1.65 | % |  | 1.63 | % |  | 1.63 | % |
Credit card and other 5 |  | 3.48 | % |  | 3.79 | % |  | 3.86 | % |  | 3.72 | % |  | 3.32 | % |
Total allowance for loans and lease losses to loans and leases |  | 1.23 | % |  | 1.20 | % |  | 1.21 | % |  | 1.18 | % |  | 1.16 | % |
Allowance for loans and lease losses to nonperforming loans and leases |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, and industrial (C&I) |  | 273 | % |  | 177 | % |  | 159 | % |  | 202 | % |  | 253 | % |
Commercial real estate |  | 135 | % |  | 219 | % |  | 238 | % |  | 1,554 | % |  | 1,422 | % |
Consumer real estate |  | 158 | % |  | 154 | % |  | 135 | % |  | 131 | % |  | 119 | % |
Credit card and other 5 |  | 1,364 | % |  | 1,384 | % |  | 1,439 | % |  | 1,364 | % |  | 1,070 | % |
Total allowance for loans and lease losses to nonperforming loans and leases |  | 193 | % |  | 183 | % |  | 169 | % |  | 217 | % |  | 228 | % |
Allowance for credit losses ratios |  |  |  |  |  |  |  |  |  |  |
Total allowance for credit losses to loans and leases 4 |  | 1.36 | % |  | 1.35 | % |  | 1.35 | % |  | 1.33 | % |  | 1.31 | % |
Total allowance for credit losses to nonperforming loans and leases 4 |  | 214 | % |  | 206 | % |  | 189 | % |  | 244 | % |  | 258 | % |

See footnote disclosures on page 20.
17

REGIONAL BANKING
Quarterly, Unaudited

|  |  |  |  |  |  |  |  |  |  | 3Q23 Change vs. |  |  |  |
| 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  | 2Q23 |  | 3Q22 |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |  |  |  |  |  |  |  |
Income Statement (millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 583 |  |  | $ | 612 |  |  | $ | 586 |  |  | $ | 544 |  |  | $ | 518 |  |  | $ | (29) |  |  | (5) | % |  | $ | 65 |  |  | 13 | % |  |  |  |  |  |  |  |
Noninterest income | 109 |  |  | 109 |  |  | 107 |  |  | 107 |  |  | 110 |  |  | — |  |  | — |  |  | (1) |  |  | (1) |  |  |  |  |  |  |  |  |
Total revenue | 692 |  |  | 721 |  |  | 693 |  |  | 650 |  |  | 627 |  |  | (29) |  |  | (4) |  |  | 65 |  |  | 10 |  |  |  |  |  |  |  |  |
Noninterest expense | 318 |  |  | 321 |  |  | 320 |  |  | 321 |  |  | 302 |  |  | (3) |  |  | (1) |  |  | 16 |  |  | 5 |  |  |  |  |  |  |  |  |
Pre-provision net revenue 3 | 374 |  |  | 399 |  |  | 373 |  |  | 330 |  |  | 326 |  |  | (25) |  |  | (6) |  |  | 48 |  |  | 15 |  |  |  |  |  |  |  |  |
Provision for credit losses | 104 |  |  | 43 |  |  | 41 |  |  | 30 |  |  | 43 |  |  | 61 |  |  | 142 |  |  | 61 |  |  | 142 |  |  |  |  |  |  |  |
Income before income tax expense | 270 |  |  | 356 |  |  | 331 |  |  | 300 |  |  | 283 |  |  | (86) |  |  | (24) |  |  | (13) |  |  | (5) |  |  |  |  |  |  |  |  |
Income tax expense | 63 |  |  | 84 |  |  | 78 |  |  | 70 |  |  | 66 |  |  | (21) |  |  | (25) |  |  | (3) |  |  | (5) |  |  |  |  |  |  |  |  |
Net income | $ | 207 |  |  | $ | 272 |  |  | $ | 253 |  |  | $ | 229 |  |  | $ | 216 |  |  | $ | (65) |  |  | (24) | % |  | $ | (9) |  |  | (4) | % |  |  |  |  |  |  |  |
Average Balances (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total loans and leases | $ | 43.9 |  |  | $ | 42.9 |  |  | $ | 41.8 |  |  | $ | 41.1 |  |  | $ | 40.1 |  |  | $ | 1.0 |  |  | 2 | % |  | $ | 3.8 |  |  | 9 | % |  |  |  |  |  |  |  |
Interest-earning assets | 43.9 |  |  | 42.9 |  |  | 41.8 |  |  | 41.1 |  |  | 40.1 |  |  | 1.0 |  |  | 2 |  |  | 3.8 |  |  | 9 |  |  |  |  |  |  |  |  |
Total assets | 46.7 |  |  | 45.6 |  |  | 44.5 |  |  | 43.8 |  |  | 42.8 |  |  | 1.1 |  |  | 2 |  |  | 3.9 |  |  | 9 |  |  |  |  |  |  |  |  |
Total deposits | 58.8 |  |  | 55.9 |  |  | 57.8 |  |  | 59.6 |  |  | 61.9 |  |  | 2.9 |  |  | 5 |  |  | (3.1) |  |  | (5) |  |  |  |  |  |  |  |  |
Key Metrics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest margin 6 | 5.30 | % |  | 5.75 | % |  | 5.71 | % |  | 5.27 | % |  | 5.15 | % |  | (45) | bp |  |  |  | 15 | bp |  |  |  |  |  |  |  |  |  |
Efficiency ratio | 45.97 | % |  | 44.59 | % |  | 46.21 | % |  | 49.30 | % |  | 48.11 | % |  | 138 | bp |  |  |  | (214) | bp |  |  |  |  |  |  |  |  |  |
Loans-to-deposits ratio (period-end balances) | 74.40 | % |  | 74.98 | % |  | 73.95 | % |  | 70.81 | % |  | 66.77 | % |  | (58) | bp |  |  |  | 763 | bp |  |  |  |  |  |  |  |  |  |
Loans-to-deposits ratio (average-end balances) | 74.78 | % |  | 76.72 | % |  | 72.39 | % |  | 69.02 | % |  | 64.78 | % |  | (194) | bp |  |  |  | 1,000 | bp |  |  |  |  |  |  |  |  |  |
Return on average assets (annualized) | 1.76 | % |  | 2.39 | % |  | 2.31 | % |  | 2.08 | % |  | 2.01 | % |  | (63) | bp |  |  |  | (25) | bp |  |  |  |  |  |  |  |  |  |
Return on allocated equity 7 | 22.19 | % |  | 29.55 | % |  | 27.96 | % |  | 25.21 | % |  | 24.14 | % |  | (736) | bp |  |  |  | (195) | bp |  |  |  |  |  |  |  |  |  |
Financial center locations | 418 |  |  | 417 |  |  | 417 |  |  | 417 |  |  | 417 |  |  | 1 |  |  | — | % |  | 1 |  |  | — | % |  |  |  |  |  |  |  |

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

|  |  |  |  |  |  |  |  |  |  | 3Q23 Change vs. |  |  |  |
| 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  | 2Q23 |  | 3Q22 |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | $/bp |  | % |  | $/bp |  | % |  |  |  |  |  |  |  |
Income Statement (millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income | $ | 135 |  |  | $ | 130 |  |  | $ | 125 |  |  | $ | 134 |  |  | $ | 138 |  |  | $ | 5 |  |  | 4 | % |  | $ | (3) |  |  | (2) | % |  |  |  |  |  |  |  |
Noninterest income | 46 |  |  | 48 |  |  | 53 |  |  | 47 |  |  | 64 |  |  | (2) |  |  | (4) |  |  | (18) |  |  | (28) |  |  |  |  |  |  |  |  |
Total revenue | 181 |  |  | 177 |  |  | 179 |  |  | 181 |  |  | 203 |  |  | 4 |  |  | 2 |  |  | (22) |  |  | (11) |  |  |  |  |  |  |  |  |
Noninterest expense | 89 |  |  | 88 |  |  | 93 |  |  | 93 |  |  | 105 |  |  | 1 |  |  | 1 |  |  | (16) |  |  | (15) |  |  |  |  |  |  |  |  |
Pre-provision net revenue 3 | 92 |  |  | 89 |  |  | 86 |  |  | 87 |  |  | 97 |  |  | 3 |  |  | 3 |  |  | (5) |  |  | (5) |  |  |  |  |  |  |  |  |
Provision for credit losses | 6 |  |  | 10 |  |  | 10 |  |  | 18 |  |  | 17 |  |  | (4) |  |  | (40) |  |  | (11) |  |  | (65) |  |  |  |  |  |  |  |
Income before income tax expense | 87 |  |  | 79 |  |  | 76 |  |  | 70 |  |  | 80 |  |  | 8 |  |  | 10 |  |  | 7 |  |  | 9 |  |  |  |  |  |  |  |  |
Income tax expense | 21 |  |  | 19 |  |  | 18 |  |  | 17 |  |  | 19 |  |  | 2 |  |  | 11 |  |  | 2 |  |  | 11 |  |  |  |  |  |  |  |  |
Net income | $ | 66 |  |  | $ | 60 |  |  | $ | 57 |  |  | $ | 53 |  |  | $ | 61 |  |  | $ | 6 |  |  | 10 | % |  | $ | 5 |  |  | 8 | % |  |  |  |  |  |  |  |
Average Balances (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total loans and leases | $ | 17.0 |  |  | $ | 16.5 |  |  | $ | 15.8 |  |  | $ | 15.9 |  |  | $ | 15.9 |  |  | $ | 0.5 |  |  | 3 | % |  | $ | 1.1 |  |  | 7 | % |  |  |  |  |  |  |  |
Interest-earning assets | 19.3 |  |  | 18.7 |  |  | 18.1 |  |  | 18.4 |  |  | 18.6 |  |  | 0.6 |  |  | 3 |  |  | 0.7 |  |  | 4 |  |  |  |  |  |  |  |  |
Total assets | 20.7 |  |  | 20.0 |  |  | 19.4 |  |  | 19.6 |  |  | 19.7 |  |  | 0.7 |  |  | 3 |  |  | 1.0 |  |  | 5 |  |  |  |  |  |  |  |  |
Total deposits | 3.3 |  |  | 3.1 |  |  | 3.6 |  |  | 4.3 |  |  | 5.2 |  |  | 0.2 |  |  | 6 |  |  | (1.9) |  |  | (36) |  |  |  |  |  |  |  |  |
Key Metrics |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed income product average daily revenue (thousands) | $ | 301 |  |  | $ | 348 |  |  | $ | 437 |  |  | $ | 403 |  |  | $ | 524 |  |  | $ | (47) |  |  | (14) | % |  | $ | (223) |  |  | (43) | % |  |  |  |  |  |  |  |
Net interest margin 6 | 2.78 | % |  | 2.77 | % |  | 2.80 | % |  | 2.89 | % |  | 2.96 | % |  | 1 | bp |  |  |  | (18) | bp |  |  |  |  |  |  |  |  |  |
Efficiency ratio | 49.10 | % |  | 49.60 | % |  | 52.19 | % |  | 51.69 | % |  | 52.03 | % |  | (50) | bp |  |  |  | (293) | bp |  |  |  |  |  |  |  |  |  |
Loans-to-deposits ratio (period-end balances) | 509 | % |  | 559 | % |  | 504 | % |  | 426 | % |  | 378 | % |  | (5,000) | bp |  |  |  | 13,096 | bp |  |  |  |  |  |  |  |  |  |
Loans-to-deposits ratio (average-end balances) | 517 | % |  | 537 | % |  | 440 | % |  | 370 | % |  | 307 | % |  | (2,000) | bp |  |  |  | 20,983 | bp |  |  |  |  |  |  |  |  |  |
Return on average assets (annualized) | 1.26 | % |  | 1.20 | % |  | 1.20 | % |  | 1.06 | % |  | 1.22 | % |  | 6 | bp |  |  |  | 4 | bp |  |  |  |  |  |  |  |  |  |
Return on allocated equity 7 | 15.40 | % |  | 14.92 | % |  | 14.69 | % |  | 13.05 | % |  | 14.74 | % |  | 48 | bp |  |  |  | 66 | 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 (prior to July 2022). In addition to traditional lending and deposit taking, Specialty Banking also delivers treasury management solutions, loan syndications, and international banking. 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

|  | 3Q23 Change vs. |  |  |  |  |  |
| 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  | 2Q23 |  | 3Q22 |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | $ |  | % |  | $ |  | % |  |  |  |  |  |  |  |
Income Statement (millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income/(expense) | $ | (113) |  |  | $ | (111) |  |  | $ | (24) |  |  | $ | 31 |  |  | $ | 6 |  |  | $ | (2) |  |  | (2) | % |  | $ | (119) |  |  | NM |  |  |  |  |  |  |  |
Noninterest income | 18 |  |  | 244 |  |  | 11 |  |  | 21 |  |  | 39 |  |  | (226) |  |  | (93) |  |  | (21) |  |  | (54) |  |  |  |  |  |  |  |  |
Total revenues | (95) |  |  | 133 |  |  | (13) |  |  | 52 |  |  | 45 |  |  | (228) |  |  | NM |  | (140) |  |  | NM |  |  |  |  |  |  |  |
Noninterest expense | 67 |  |  | 146 |  |  | 64 |  |  | 90 |  |  | 61 |  |  | (79) |  |  | (54) |  |  | 6 |  |  | 10 |  |  |  |  |  |  |  |  |
Pre-provision net revenue 3 | (162) |  |  | (13) |  |  | (77) |  |  | (38) |  |  | (17) |  |  | (149) |  |  | NM |  | (145) |  |  | NM |  |  |  |  |  |  |  |
Provision for credit losses | — |  |  | (4) |  |  | (1) |  |  | (3) |  |  | — |  |  | 4 |  |  | 100 |  |  | — |  |  | NM |  |  |  |  |  |  |  |
Income before income tax expense | (162) |  |  | (10) |  |  | (76) |  |  | (35) |  |  | (17) |  |  | (152) |  |  | NM |  | (145) |  |  | NM |  |  |  |  |  |  |  |
Income tax expense (benefit) | (32) |  |  | (7) |  |  | (21) |  |  | (23) |  |  | (8) |  |  | (25) |  |  | NM |  | (24) |  |  | NM |  |  |  |  |  |  |  |
Net income/(loss) | $ | (130) |  |  | $ | (3) |  |  | $ | (55) |  |  | $ | (12) |  |  | $ | (9) |  |  | $ | (127) |  |  | NM |  | $ | (121) |  |  | NM |  |  |  |  |  |  |  |
Average Balance Sheet (billions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing assets | $ | 13.0 |  |  | $ | 13.7 |  |  | $ | 12.1 |  |  | $ | 13.3 |  |  | $ | 17.3 |  |  | $ | (0.7) |  |  | (5) | % |  | $ | (4.3) |  |  | (25) | % |  |  |  |  |  |  |  |
Total assets | 15.9 |  |  | 16.7 |  |  | 14.9 |  |  | 16.0 |  |  | 20.0 |  |  | (0.8) |  |  | (5) |  |  | (4.1) |  |  | (20) |  |  |  |  |  |  |  |  |

Numbers may not add to total due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
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 Occupancy and Equipment expense includes Computer Software Expense.
3 Pre-provision net revenue is a non-GAAP measure and is reconciled to income before income taxes (GAAP) in the table.
4 Represents a non-GAAP measure and is reconciled to the nearest GAAP measure in the non-GAAP to GAAP reconciliations beginning on page 21.
5 Credit card and other includes $187.1 million of commercial credit card balances at September 30, 2023.
6 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.
7 Segment equity is allocated based on an internal allocation methodology.
8 2Q23 includes 19.7 million share impact of Series G convertible securities issued in connection with TD transaction based on the final conversion rate; 1Q23, 4Q22 and 3Q22 include 27.5 million shares based on the original maximum conversion rate.
9 3Q23 increase driven by the conversion of Series G convertible securities issued in connection with TD transaction.
20

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |
($s in millions, except per share data) | 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  |  |  |  |
Tangible Common Equity (Non-GAAP) |  |  |  |  |  |  |  |  |  |  |  |  |  |
(A) Total equity (GAAP) | $ | 8,794 |  |  | $ | 8,960 |  |  | $ | 8,895 |  |  | $ | 8,547 |  |  | $ | 8,283 |  |  |  |  |  |
Less: Noncontrolling interest (a) | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  | 295 |  |  |  |  |  |
Less: Preferred stock (a) | 520 |  |  | 520 |  |  | 1,014 |  |  | 1,014 |  |  | 1,014 |  |  |  |  |  |
(B) Total common equity | $ | 7,978 |  |  | $ | 8,144 |  |  | $ | 7,586 |  |  | $ | 7,238 |  |  | $ | 6,974 |  |  |  |  |  |
Less: Intangible assets (GAAP) (b) | 1,709 |  |  | 1,720 |  |  | 1,732 |  |  | 1,744 |  |  | 1,757 |  |  |  |  |  |
(C) Tangible common equity (Non-GAAP) | $ | 6,270 |  |  | $ | 6,424 |  |  | $ | 5,853 |  |  | $ | 5,494 |  |  | $ | 5,217 |  |  |  |  |  |
Tangible Assets (Non-GAAP) |  |  |  |  |  |  |  |  |  |  |  |  |  |
(D) Total assets (GAAP) | $ | 82,533 |  |  | $ | 85,071 |  |  | $ | 80,729 |  |  | $ | 78,953 |  |  | $ | 80,299 |  |  |  |  |  |
Less: Intangible assets (GAAP) (b) | 1,709 |  |  | 1,720 |  |  | 1,732 |  |  | 1,744 |  |  | 1,757 |  |  |  |  |  |
(E) Tangible assets (Non-GAAP) | $ | 80,825 |  |  | $ | 83,351 |  |  | $ | 78,997 |  |  | $ | 77,209 |  |  | $ | 78,542 |  |  |  |  |  |
Period-end Shares Outstanding |  |  |  |  |  |  |  |  |  |  |  |  |  |
(F) Period-end shares outstanding | 559 |  |  | 559 |  |  | 538 |  |  | 537 |  |  | 537 |  |  |  |  |  |
Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |
(A)/(D) Total equity to total assets (GAAP) | 10.65 | % |  | 10.53 | % |  | 11.02 | % |  | 10.83 | % |  | 10.32 | % |  |  |  |  |
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP) | 7.76 | % |  | 7.71 | % |  | 7.41 | % |  | 7.12 | % |  | 6.64 | % |  |  |  |  |
(B)/(F) Book value per common share (GAAP) | $ | 14.28 |  |  | $ | 14.58 |  |  | $ | 14.11 |  |  | $ | 13.48 |  |  | $ | 12.99 |  |  |  |  |  |
(C)/(F) Tangible book value per common share (Non-GAAP) | $ | 11.22 |  |  | $ | 11.50 |  |  | $ | 10.89 |  |  | $ | 10.23 |  |  | $ | 9.72 |  |  |  |  |  |

(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 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
($s in millions, except per share data) |  | 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  |  |  |  |
Adjusted Diluted EPS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income available to common shareholders ("NIAC") (GAAP) | a | $ | 129 |  |  | $ | 317 |  |  | $ | 243 |  |  | $ | 258 |  |  | $ | 257 |  |  |  |  |  |
Plus Tax effected notable items (Non-GAAP) (a) |  | $ | 20 |  |  | $ | (98) |  |  | $ | 16 |  |  | $ | 34 |  |  | $ | (5) |  |  |  |  |  |
Adjusted net income available to common shareholders (Non-GAAP) | b | $ | 150 |  |  | $ | 219 |  |  | $ | 259 |  |  | $ | 293 |  |  | $ | 252 |  |  |  |  |  |
Diluted Shares (GAAP)8 | c | 561 |  |  | 561 |  |  | 572 |  |  | 572 |  |  | 570 |  |  |  |  |  |
Diluted EPS (GAAP) | a/c | $ | 0.23 |  |  | $ | 0.56 |  |  | $ | 0.43 |  |  | $ | 0.45 |  |  | $ | 0.45 |  |  |  |  |  |
Adjusted diluted EPS (Non-GAAP) | b/c | $ | 0.27 |  |  | $ | 0.39 |  |  | $ | 0.45 |  |  | $ | 0.51 |  |  | $ | 0.44 |  |  |  |  |  |
Adjusted Net Income ("NI") and Adjusted Return on Assets ("ROA") |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Income ("NI") (GAAP) |  | $ | 142 |  |  | $ | 329 |  |  | $ | 256 |  |  | $ | 270 |  |  | $ | 268 |  |  |  |  |  |
Plus Tax effected notable items (Non-GAAP) (a) |  | $ | 20 |  |  | $ | (98) |  |  | $ | 16 |  |  | $ | 34 |  |  | $ | (5) |  |  |  |  |  |
Adjusted NI (Non-GAAP) |  | $ | 163 |  |  | $ | 231 |  |  | $ | 271 |  |  | $ | 304 |  |  | $ | 263 |  |  |  |  |  |
NI (annualized) (GAAP) | d | $ | 565 |  |  | $ | 1,320 |  |  | $ | 1,037 |  |  | $ | 1,070 |  |  | $ | 1,063 |  |  |  |  |  |
Adjusted NI (annualized) (Non-GAAP) | e | $ | 646 |  |  | $ | 928 |  |  | $ | 1,100 |  |  | $ | 1,206 |  |  | $ | 1,045 |  |  |  |  |  |
Average assets (GAAP) | f | $ | 83,220 |  |  | $ | 82,304 |  |  | $ | 78,841 |  |  | $ | 79,521 |  |  | $ | 82,551 |  |  |  |  |  |
ROA (GAAP) | d/f | 0.68 | % |  | 1.60 | % |  | 1.32 | % |  | 1.35 | % |  | 1.29 | % |  |  |  |  |
Adjusted ROA (Non-GAAP) | e/f | 0.78 | % |  | 1.13 | % |  | 1.40 | % |  | 1.52 | % |  | 1.27 | % |  |  |  |  |
Return on Average Common Equity ("ROCE")/ Return on Average Tangible Common Equity ("ROTCE")/ Adjusted ROTCE |  |  |  |
Net income available to common shareholders ("NIAC") (annualized) (GAAP) | g | $ | 513 |  |  | $ | 1,270 |  |  | $ | 987 |  |  | $ | 1,025 |  |  | $ | 1,020 |  |  |  |  |  |
Adjusted Net income available to common shareholders (annualized) (Non-GAAP) | h | $ | 594 |  |  | $ | 878 |  |  | $ | 1,050 |  |  | $ | 1,161 |  |  | $ | 1,001 |  |  |  |  |  |
Average Common Equity (GAAP) | i | $ | 8,163 |  |  | $ | 7,747 |  |  | $ | 7,398 |  |  | $ | 7,106 |  |  | $ | 7,360 |  |  |  |  |  |
Intangible Assets (GAAP) (b) |  | 1,714 |  |  | 1,726 |  |  | 1,738 |  |  | 1,750 |  |  | 1,767 |  |  |  |  |  |
Adjusted Average Tangible Common Equity (Non-GAAP) | j | $ | 6,448 |  |  | $ | 6,021 |  |  | $ | 5,659 |  |  | $ | 5,356 |  |  | $ | 5,593 |  |  |  |  |  |
ROCE (GAAP) | g/i | 6.28 | % |  | 16.40 | % |  | 13.34 | % |  | 14.42 | % |  | 13.85 | % |  |  |  |  |
ROTCE (Non-GAAP) | g/j | 7.95 | % |  | 21.10 | % |  | 17.43 | % |  | 19.14 | % |  | 18.23 | % |  |  |  |  |
Adjusted ROTCE (Non-GAAP) | h/j | 9.21 | % |  | 14.59 | % |  | 18.55 | % |  | 21.68 | % |  | 17.89 | % |  |  |  |  |

(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.
22

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Quarterly, Unaudited |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(In millions) |  | 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22 |  |  |  |  |
Adjusted Noninterest Income as a % of Total Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest income (GAAP) | k | $ | 173 |  |  | $ | 400 |  |  | $ | 171 |  |  | $ | 174 |  |  | $ | 213 |  |  |  |  |  |
Plus notable items (GAAP) (a) |  | — |  |  | (225) |  |  | — |  |  | (1) |  |  | (32) |  |  |  |  |  |
Adjusted noninterest income (Non-GAAP) | l | $ | 173 |  |  | $ | 175 |  |  | $ | 171 |  |  | $ | 173 |  |  | $ | 181 |  |  |  |  |  |
Revenue (GAAP) | m | $ | 778 |  |  | $ | 1,031 |  |  | $ | 859 |  |  | $ | 882 |  |  | $ | 875 |  |  |  |  |  |
Taxable-equivalent adjustment |  | 4 |  |  | 4 |  |  | 4 |  |  | 4 |  |  | 4 |  |  |  |  |  |
Revenue- Taxable-equivalent (Non-GAAP) |  | 782 |  |  | 1,035 |  |  | 863 |  |  | 886 |  |  | 878 |  |  |  |  |  |
Plus notable items (GAAP) (a) |  | — |  |  | (225) |  |  | — |  |  | (1) |  |  | (32) |  |  |  |  |  |
Adjusted revenue (Non-GAAP) | n | $ | 782 |  |  | $ | 810 |  |  | $ | 863 |  |  | $ | 885 |  |  | $ | 847 |  |  |  |  |  |
Noninterest income as a % of total revenue (GAAP) | k/m | 22.27 | % |  | 38.82 | % |  | 19.94 | % |  | 19.68 | % |  | 24.30 | % |  |  |  |  |
Adjusted noninterest income as a % of total revenue (Non-GAAP) | l/n | 22.16 | % |  | 21.63 | % |  | 19.85 | % |  | 19.55 | % |  | 21.37 | % |  |  |  |  |
Adjusted Efficiency Ratio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest expense (GAAP) | o | $ | 474 |  |  | $ | 555 |  |  | $ | 478 |  |  | $ | 503 |  |  | $ | 468 |  |  |  |  |  |
Plus notable items (GAAP) (a) |  | (10) |  |  | (95) |  |  | (21) |  |  | (46) |  |  | (25) |  |  |  |  |  |
Adjusted noninterest expense (Non-GAAP) | p | $ | 465 |  |  | $ | 461 |  |  | $ | 457 |  |  | $ | 458 |  |  | $ | 444 |  |  |  |  |  |
Revenue (GAAP) | q | $ | 778 |  |  | $ | 1,031 |  |  | $ | 859 |  |  | $ | 882 |  |  | $ | 875 |  |  |  |  |  |
Taxable-equivalent adjustment |  | 4 |  |  | 4 |  |  | 4 |  |  | 4 |  |  | 4 |  |  |  |  |  |
Revenue- Taxable-equivalent (Non-GAAP) |  | 782 |  |  | 1,035 |  |  | 863 |  |  | 886 |  |  | 878 |  |  |  |  |  |
Plus notable items (GAAP) (a) |  | — |  |  | (225) |  |  | — |  |  | (1) |  |  | (32) |  |  |  |  |  |
Adjusted revenue (Non-GAAP) | r | $ | 782 |  |  | $ | 810 |  |  | $ | 863 |  |  | $ | 885 |  |  | $ | 847 |  |  |  |  |  |
Efficiency ratio (GAAP) | o/q | 60.92 | % |  | 53.87 | % |  | 55.65 | % |  | 57.07 | % |  | 53.56 | % |  |  |  |  |
Adjusted efficiency ratio (Non-GAAP) | p/r | 59.39 | % |  | 56.90 | % |  | 52.95 | % |  | 51.70 | % |  | 52.42 | % |  |  |  |  |

(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
($s in millions)

|  | Period-end |  | Average
|  | 3Q23 |  | 2Q23 |  | 3Q23 vs. 2Q23 |  | 3Q23 |  | 2Q23 |  | 3Q23 vs. 2Q23
Loans excluding LMC |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Loans (GAAP) |  | $ | 61,778 |  |  | $ | 61,295 |  |  | $ | 483 |  |  | 1 | % |  | $ | 61,432 |  |  | $ | 59,924 |  |  | $ | 1,508 |  |  | 3 | %
LMC (GAAP) |  | 2,237 |  | 2,691 |  | (454) |  |  | (17) | % |  | 2,353 |  | 2,262 |  | 90 |  |  | 4 | %
Total Loans excl. LMC (Non-GAAP) |  | 59,541 |  |  | 58,604 |  |  | 937 |  |  | 2 | % |  | 59,079 |  |  | 57,662 |  |  | 1,417 |  |  | 2 | %
Total Consumer (GAAP) |  | 14,494 |  | 14,289 |  | 205 |  |  | 1 | % |  | 14,391 |  | 13,873 |  | 518 |  |  | 4 | %
Total Commercial excl. LMC (Non-GAAP) |  | 45,047 |  |  | 44,315 |  |  | 732 |  |  | 2 | % |  | 44,688 |  |  | 43,789 |  |  | 899 |  |  | 2 | %
Total CRE (GAAP) |  | 14,121 |  |  | 13,891 |  |  | 230 |  |  | 2 | % |  | 13,999 |  |  | 13,628 |  |  | 371 |  |  | 3 | %
Total C&I excl. LMC (Non-GAAP) |  | $ | 30,926 |  |  | $ | 30,424 |  |  | $ | 502 |  |  | 2 | % |  | $ | 30,689 |  |  | $ | 30,161 |  |  | $ | 528 |  |  | 2 | %

Numbers may not foot due to rounding.

|  | 3Q23 |  | 2Q23 |  | 1Q23 |  | 4Q22 |  | 3Q22
Allowance for credit losses to loans and leases and Allowance for credit losses to nonperforming loans and leases |  |  |  |  |  |  |  |  |  |
Allowance for loan and lease losses (GAAP) | A | $ | 760 |  |  | $ | 737 |  |  | $ | 715 |  |  | $ | 685 |  |  | $ | 664 |
Reserve for unfunded commitments (GAAP) |  | 82 |  |  | 90 |  |  | 85 |  |  | 87 |  |  | 88 |
Allowance for credit losses (Non-GAAP) | B | $ | 842 |  |  | $ | 827 |  |  | $ | 800 |  |  | $ | 771 |  |  | $ | 752 |
Loans and leases (GAAP) | C | $ | 61,778 |  |  | $ | 61,295 |  |  | $ | 59,045 |  |  | $ | 58,101 |  |  | $ | 57,354 |
Nonaccrual loans and leases (GAAP) | D | $ | 394 |  |  | $ | 402 |  |  | $ | 424 |  |  | $ | 316 |  |  | $ | 292 |
Allowance for loans and lease losses to loans and leases (GAAP) | A/C | 1.23 | % |  | 1.20 | % |  | 1.21 | % |  | 1.18 | % |  | 1.16 | %
Allowance for credit losses to loans and leases (Non-GAAP) | B/C | 1.36 | % |  | 1.35 | % |  | 1.35 | % |  | 1.33 | % |  | 1.31 | %
Allowance for loans and lease losses to nonperforming loans and leases (GAAP) | A/D | 193 | % |  | 183 | % |  | 169 | % |  | 217 | % |  | 228 | %
Allowance for credit losses to nonperforming loans and leases (Non-GAAP) | B/D | 214 | % |  | 206 | % |  | 189 | % |  | 244 | % |  | 258 | %

Numbers may not foot due to rounding.
24

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 (prior to July 2022). In addition to traditional lending and deposit taking, Specialty Banking also delivers treasury management solutions, loan syndications, and international banking. 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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