EX-99.1 2 a2q2023earningsrelease.htm 2Q2023 EARNINGS RELEASE Document






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First Horizon Corporation Reports Second Quarter 2023 Net Income Available to Common Shareholders of
$317 Million, or EPS of $0.56; $219 Million, or $0.39, on an Adjusted Basis*

Pre-provision net revenue up 86% from the prior year and up 18% on an adjusted basis*

Period end deposits increased $4.0 billion QoQ, or 6%, up 3% year-to-date with common equity tier 1 ratio of 11.1%

ROTCE of 21.1% and adjusted ROTCE of 14.6% with tangible book value per share of $11.50*

MEMPHIS, TN (July 19, 2023) – First Horizon Corporation (NYSE: FHN or “First Horizon”) today reported second quarter net income available to common shareholders ("NIAC") of $317 million, or earnings per share of $0.56, compared with first quarter 2023 NIAC of $243 million, or earnings per share of $0.43.

Second quarter 2023 results benefited from a net $98 million after-tax, or $0.17 per share, of notable items compared with a reduction of $16 million, or $0.03 per share, in first quarter 2023. Excluding notable items, adjusted second quarter 2023 NIAC of $219 million, or $0.39 per share, decreased from $259 million, or $0.45 per share in first quarter 2023.

“Our results this quarter reflect the continued strength, resilience, and momentum of our diversified business mix, the benefit of our attractive markets, and the dedication of our associates,“ said, Chairman, President and Chief Executive Officer Bryan Jordan. “Despite a challenging macroeconomic environment, we continued to serve our clients, growing period end loans by $2.3 billion and period end deposits by $4.0 billion, with over 32,000 new-to-bank clients bringing $3.5 billion in deposit balances.”

Jordan continued, “I thank our associates for their unwavering commitment to our clients, communities, and core values. We remain focused on delivering top quartile returns by executing on our strategic priorities, growing our core businesses, empowering our talent, and providing a best-in-class client experience."

Notable Items
Notable Items
Quarterly, Unaudited ($s in millions, except per share data)2Q231Q232Q22
Summary of Notable Items:
Gain on merger termination$225 $— $— 
Gain on mortgage servicing rights (mortgage banking and title)— — 12 
Net Merger/acquisition/transaction-related items(30)(21)(38)
Other notable expenses (65)— (12)
Total Notable items (pre-tax)130 (21)(38)
Total Notable items (after-tax)98 (16)(29)
EPS impact of notable items$0.17 $(0.03)$(0.05)
Numbers may not foot due to rounding.

Second quarter pre-tax net notable items include a $225 million gain from merger agreement termination and merger-related costs of $30 million. Other notable items of $65 million reflect a $50 million contribution to the First Horizon Foundation and a $15 million impact tied to derivative valuation adjustments related to prior Visa Class-B share sales.

*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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Second Quarter 2023 versus First Quarter 2023 Highlights
•Total revenue of $1.0 billion increased $172 million and adjusted revenue of $810 million decreased $53 million, or 6%, primarily due to a 8% decline in net interest income driven by a 50 bp reduction in NIM.
•Net interest income of $631 million decreased $57 million, or 8%, as the benefit of higher loan rates and loan balances were more than offset by higher funding costs.
•Noninterest income of $400 million increased $229 million due to a $225 million gain on termination and adjusted noninterest income of $175 million increased $4 million as higher deferred compensation and services charges and fees was partially offset by a reduction in fixed income.
•Noninterest expense of $555 million increased $77 million driven by $65 million of other notable items and $30 million of merger-related costs. Adjusted noninterest expense of $461 million increased $4 million largely as an increase in personnel expense and outside services were partially offset by a reduction in other noninterest expense.
•Provision expense of $50 million remained stable and reflects the impact of 3% loan growth excluding loans to mortgage companies ("LMC") and modest growth in net charge-offs.
•Average interest-earning assets of $75.3 billion increased $3.3 billion largely driven by a $1.9 billion increase in loans and a $1.6 billion increase in interest-bearing deposits with banks.
•Average loans increased $1.9 billion driven by a $1.2 billion increase in commercial loans with a $0.4 billion increase in LMC.
•Period-end loans increased $2.3 billion, or 4%, driven by a $1.4 billion increase in commercial and a $0.8 billion increase in consumer. Period-end commercial loans excluding LMC rose 2%.
•Period-end deposits of $65.4 billion increased $4.0 billion reflecting a $6.3 billion increase in interest-bearing deposits partially offset by a $2.3 billion decrease in noninterest-bearing.
•Average deposits of $61.4 billion decreased $0.8 billion, or 1%, driven by a $2.6 billion decrease in DDA and other noninterest-bearing deposits partially offset by a $1.8 billion increase in interest-bearing deposits. Total deposit costs of 173 basis points increased 62 basis points.
•Allowance for credit losses ("ACL") to loans ratio remained stable at 1.35% as of June 30, 2023. The ACL to nonperforming loans ratio of 206% increased from 189% at March 31, 2023.
•Net charge-offs of $23 million increased $7 million; nonperforming loans of $402 million decreased $21 million and the nonperforming loan ratio of 0.66% decreased from 0.72% at March 31, 2023.
•ROCE of 16.4%; ROTCE of 21.1%; Adjusted ROTCE of 14.6%; CET 1 ratio of 11.1%; and total capital ratio of 13.6%.
•Tangible book value per share of $11.50 at June 30, 2023 compared with $10.89 at March 31, 2023 and reflected a $0.50 increase tied to the Series G conversion to common stock and a $0.41 increase tied to adjusted NIAC net of change in intangibles.

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SUMMARY RESULTS
Quarterly, Unaudited
2Q23 Change vs.
($s in millions, except per share and balance sheet data)2Q231Q232Q221Q232Q22
$/bp%$/bp%
Income Statement
Interest income - taxable equivalent1
$1,019 $923 $586 $96 10 %$433 74 %
Interest expense- taxable equivalent1
385 232 41 153 66 344 NM
Net interest income- taxable equivalent635 691 545 (56)(8)90 17 
Less: Taxable-equivalent adjustment4 4 3 — — 1 33 
Net interest income631 688 542 (57)(8)89 16 
Noninterest income400 171 201 229 134 199 99 
      Total revenue1,031 859 743 172 20 288 39 
Noninterest expense555 478 489 77 16 66 13 
Pre-provision net revenue3
475 381 255 94 25 220 86 
Provision for credit losses50 50 30 — — 20 67 
Income before income taxes425 331 225 94 28 200 89 
Provision for income taxes96 75 48 21 28 48 100 
Net income329 256 177 73 29 152 86 
Net income attributable to noncontrolling interest5 4 3 1 25 2 67 
Net income attributable to controlling interest325 251 174 74 29 151 87 
Preferred stock dividends8 8 8 — — — — 
Net income available to common shareholders$317 $243 $166 $74 30 %$151 91 %
Adjusted net income4
$231 $271 $205 $(40)(15)%$26 13 %
Adjusted net income available to common shareholders4
$219 $259 $195 $(40)(15)%$24 12 %
Common stock information
EPS$0.56 $0.43 $0.29 $0.13 30 %$0.27 92 %
Adjusted EPS4
$0.39 $0.45 $0.34 $(0.06)(13)%$0.05 15 %
Diluted shares8
561 572 569 (11)(2)%(8)(1)%
Key performance metrics
Net interest margin3.38 %3.88 %2.74 %(50)bp64 bp
Efficiency ratio53.87 55.65 65.76 (178)(1,189)
Adjusted efficiency ratio4
56.90 52.95 59.79 395 (289)
Effective income tax rate22.63 22.71 21.30 (8)133 
Return on average assets1.60 1.32 0.82 28 78 
Adjusted return on average assets4
1.13 1.40 0.95 (27)18 
Return on average common equity (“ROCE")16.4 13.3 9.1 306 728 
Return on average tangible common equity (“ROTCE”)4
21.1 17.4 12.1 367 903 
Adjusted ROTCE4
14.6 18.6 14.2 (396)44 
Noninterest income as a % of total revenue38.82 19.94 27.06 1,888 1,176 
Adjusted noninterest income as a % of total revenue4
21.63 %19.85 %25.68 %178 bp(405)bp
Balance Sheet (billions)
Average loans$59.9 $58.1 $55.6 $1.9 3 %$4.3 8 %
Average deposits61.4 62.2 71.9 (0.8)(1)(10.5)(15)
Average assets82.3 78.8 86.3 3.5 4 (4.0)(5)
Average common equity$7.7 $7.4 $7.3 $0.3 5 %$0.4 6 %
Asset Quality Highlights
Allowance for credit losses to loans and leases1.35 %1.35 %1.24 %(1)bp11 bp
Net charge-off ratio0.16 0.11 0.09 4 7 
Nonperforming loan and leases ratio0.66 %0.72 %0.53 %(6)bp13 bp
Capital Ratio Highlights (current quarter is an estimate)
Common Equity Tier 111.1 %10.4 %9.8 %72 bp127 bp
Tier 112.1 12.1 11.6 (2)47 
Total Capital13.6 13.6 13.0 (3)62 
Tier 1 leverage10.5 %10.7 %9.1 %(17)bp140 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.
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Second Quarter 2023 versus First Quarter 2023
Net interest income
Net interest income of $631 million decreased $57 million as the benefit of higher rates and loan balances was more than offset by higher funding costs driven by increased competition. Net interest margin of 3.38% decreased 50 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 $400 million increased $229 million and adjusted noninterest income of $175 million increased $4 million largely driven by a $5 million increase in deferred compensation and a $4 million increase in service charges and fees. Fixed income average daily revenue of $348 thousand decreased 20% compared with $437 thousand in first quarter 2023 driven by continuing challenging market conditions.

Noninterest expense
Noninterest expense of $555 million increased $77 million and included a $74 million increase in notable items. Adjusted noninterest expense of $461 million increased $4 million largely as higher personnel and outside services expenses were partially offset by a reduction in other noninterest expense.

Loans and leases
Average loan and lease balances of $59.9 billion increased $1.9 billion largely reflecting a 3% increase in commercial. Commercial loan growth of $1.2 billion was driven by a $0.9 billion increase in C&I loans. Consumer loan growth increased $0.6 billion compared to the prior quarter, driven by a $0.7 billion increase in consumer real estate. Results reflect a $0.4 billion increase in LMC. Loan balances excluding LMC increased $1.5 billion compared to the prior quarter, driven by a $0.8 billion increase in commercial.

Period-end loans and leases of $61.3 billion increased $2.3 billion from first quarter 2023, reflecting a 3% increase in commercial and a 6% increase in consumer. Before the impact of LMC, period-end loans increased $1.6 billion, or 3%, driven by a $0.8 billion increase in consumer and a $0.8 billion increase in all other commercial loans.

Deposits
Period-end deposits of $65.4 billion increased $4.0 billion reflecting a $6.3 billion increase in interest-bearing deposits partially offset by a $2.3 billion decrease in noninterest-bearing. Average deposits of $61.4 billion decreased $0.8 billion, or 1%. Total deposit costs of 173 basis points increased 62 basis points with a 82 basis point increase in interest-bearing deposit costs.

Asset quality
Provision expense of $50 million remained stable and reflects the impact of 3% loan growth excluding LMC and modest growth in net charge-offs.

Net charge-offs of $23 million, or 16 basis points, compared with $16 million, or 11 basis points, in first quarter 2023.

Nonperforming loans of $402 million decreased $21 million. Second quarter 2023 ACL to nonperforming loans coverage ratio of 206% compared with 189% in first quarter 2023.

The ACL to loans ratio remained flat at 1.35% from first quarter 2023.

Capital
CET1 ratio of 11.1% in second quarter 2023 compared with 10.4% in first quarter 2023. Total capital ratio of 13.6% consistent with first quarter 2023.
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Income taxes
Second quarter 2023 effective tax rate of 22.6% compared with 22.7% in first quarter 2023. On an adjusted basis, the effective tax rate of 21.6% in the second quarter 2023 decreased from 22.9% in first quarter 2023.

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 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.
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Refer to the tabular reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items, beginning on page 21.

First Horizon Corp. (NYSE: FHN), with $85.1 billion in assets as of June 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
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CONSOLIDATED INCOME STATEMENT
Quarterly, Unaudited
     2Q23 Change vs.
($s in millions, except per share data)2Q231Q234Q223Q222Q221Q232Q22
$ %$ %
Interest income - taxable equivalent1
$1,019 $923 $860 $737 $586 $96 10 %$433 74 %
Interest expense- taxable equivalent1
385 232 148 71 41 153 66 344 NM
Net interest income- taxable equivalent635 691 712 666 545 (56)(8)90 17 
Less: Taxable-equivalent adjustment4 4 4 4 3 — — 1 33 
Net interest income631 688 709 662 542 (57)(8)89 16 
Noninterest income:
Fixed income$30 39 35 46 51 (9)(23)(21)(41)
Mortgage banking and title6 5 4 9 34 1 20 (28)(82)
Brokerage, trust, and insurance35 34 33 34 36 1 3 (1)(3)
Service charges and fees59 55 56 56 57 4 7 2 4 
Card and digital banking fees21 19 20 21 23 2 11 (2)(9)
Deferred compensation income8 3 7 (3)(17)5 NM 25 147 
Gain on merger termination225 — — — — 225 NM 225 NM
Other noninterest income17 15 20 50 16 2 13 1 6 
Total noninterest income400 171 174 213 201 229 134 199 99 
Total revenue1,031 859 882 875 743 172 20 288 39 
Noninterest expense:
Personnel expense:
Salaries and benefits191 188 178 186 190 3 2 1 1 
Incentives and commissions86 80 97 92 93 6 8 (7)(8)
Deferred compensation expense8 3 7 (2)(18)5 NM 26 144 
Total personnel expense285 271 281 275 265 14 5 20 8 
Occupancy and equipment2
68 70 71 71 73 (2)(3)(5)(7)
Outside services71 66 70 66 70 5 8 1 1 
Amortization of intangible assets12 12 13 13 13 — — (1)(8)
Other noninterest expense119 59 69 44 68 60 102 51 75 
Total noninterest expense555 478 503 468 489 77 16 66 13 
Pre-provision net revenue3
475 381 379 406 255 94 25 220 86 
Provision for credit losses50 50 45 60 30 — — 20 67 
Income before income taxes425 331 334 346 225 94 28 200 89 
Provision for income taxes96 75 64 78 48 21 28 48 100 
Net income329 256 270 268 177 73 29 152 86 
Net income attributable to noncontrolling interest5 4 4 3 3 1 25 2 67 
Net income attributable to controlling interest325 251 266 265 174 74 29 151 87 
Preferred stock dividends8 8 8 8 8 — — — — 
Net income available to common shareholders$317 $243 $258 $257 $166 $74 30 %$151 91 %
Common Share Data
EPS$0.59 $0.45 $0.48 $0.48 $0.31 $0.14 31 %$0.28 90 %
Basic shares539 537 536 536 535 2 — 4 1 
Diluted EPS$0.56 $0.43 $0.45 $0.45 $0.29 $0.13 30 $0.27 92 
Diluted shares8
561 572 572 570 569 (11)(2)%(8)(1)%
Effective tax rate22.6 %22.7 %19.2 %22.6 %21.3 %
Numbers may not foot due to rounding. See footnote disclosures on page 20.
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ADJUSTED5 FINANCIAL DATA - SEE NOTABLE ITEMS ON PAGE 9
Quarterly, Unaudited
     2Q23 Change vs.
($s in millions, except per share data)2Q231Q234Q223Q222Q221Q232Q22
$%$%
Net interest income (FTE)1
$635 $691 $712 $666 $545 $(56)(8)%$90 17 %
Adjusted noninterest income:
Fixed income30 39 35 46 51 (9)(23)(21)(41)
Adjusted mortgage banking and title6 5 4 9 22 1 20 (16)(73)
Brokerage, trust, and insurance35 34 33 34 36 1 3 (1)(3)
Service charges and fees59 55 56 56 57 4 7 2 4 
Card and digital banking fees21 19 20 21 23 2 11 (2)(9)
Deferred compensation income8 3 7 (3)(17)5 NM 25 147 
Gain on merger termination— — — — — — NM — NM
Adjusted other noninterest income17 15 20 18 15 2 13 2 13 
Adjusted total noninterest income$175 $171 $173 $181 $188 $4 2 %$(13)(7)%
Total revenue (FTE)1
$810 $863 $885 $847 $733 $(53)(6)%$77 11 %
Adjusted noninterest expense:
Adjusted personnel expense:
Adjusted salaries and benefits$187 $188 $178 $185 $190 $(1)(1)%$(3)(2)%
Adjusted Incentives and commissions65 64 70 68 71 1 2 (6)(8)
Adjusted deferred compensation expense8 3 7 (2)(18)5 NM 26 144 
Adjusted total personnel expense260 255 254 251 244 5 2 16 7 
Adjusted occupancy and equipment2
68 70 71 70 72 (2)(3)(4)(6)
Adjusted outside services68 63 64 64 61 5 8 7 11 
Adjusted amortization of intangible assets12 12 12 12 12 — — — — 
Adjusted other noninterest expense53 58 58 48 50 (5)(9)3 6 
Adjusted total noninterest expense$461 $457 $458 $444 $438 $4 1 %$23 5 %
Adjusted pre-provision net revenue3
$349 $406 $428 $403 $295 $(57)(14)%$54 18 %
Provision for credit losses$50 $50 $45 $60 $30 $— — %$20 67 %
Adjusted net income available to common shareholders$219 $259 $293 $252 $195 $(40)(15)%$24 12 %
Adjusted Common Share Data
Adjusted diluted EPS$0.39 $0.45 $0.51 $0.44 $0.34 $(0.06)(13)%$0.05 15 %
Diluted shares8
561 572 572 570 569 (11)(2)%(8)(1)%
Adjusted effective tax rate21.6 %22.9 %19.8 %22.4 %21.7 %
Adjusted ROTCE14.6 %18.6 %21.7 %17.9 %14.2 %
Adjusted efficiency ratio56.9 %53.0 %51.7 %52.4 %59.8 %
Numbers may not foot due to rounding.
See footnote disclosures on page 20.

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NOTABLE ITEMS
Quarterly, Unaudited
(In millions)2Q231Q234Q223Q222Q22
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 — 
Gain on sale of mortgage servicing rights— — — — 12 
Net Merger/acquisition/transaction-related items(30)(21)(36)(24)(38)
Other notable expenses*(65)— (10)— (12)
Total notable items130 (21)(45)7 (38)
EPS impact of notable items$0.17 $(0.03)$(0.06)$0.01 $(0.05)
Numbers may not foot due to rounding
* 2Q23 includes $50 million contribution to First Horizon Foundation; 2Q23, 4Q22 and 2Q22 includes $15 million, $10 million and $12 million, respectively of Visa derivative valuation expense.



IMPACT OF NOTABLE ITEMS:
Quarterly, Unaudited
     
(In millions)2Q231Q234Q223Q222Q22
Impacts of Notable Items:
Noninterest income:
Mortgage banking and title$— $— $— $— $(12)
Gain on merger termination(225)— — — — 
Other noninterest income— — (1)(32)— 
Total noninterest income$(225)$— $(1)$(32)$(13)
Noninterest expense:
Personnel expenses:
Salaries and benefits$(4)$— $— $— $1 
Incentives and commissions(21)(16)(27)(24)(22)
Deferred compensation expense— — — — — 
Total personnel expenses(25)(16)(27)(25)(21)
Occupancy and equipment2
— — — (1)(1)
Outside services(4)(3)(6)(2)(9)
Amortization of intangible assets— — (1)(1)(1)
Other noninterest expense(66)(2)(11)4 (18)
Total noninterest expense$(95)$(21)$(46)$(25)$(50)
Income before income taxes$(130)$21 $45 $(7)$38 
Provision for income taxes(33)6 11 (2)9 
Net income/(loss) available to common shareholders$(98)$16 $34 $(5)$29 
Numbers may not foot due to rounding

9


FINANCIAL RATIOS
Quarterly, Unaudited
     2Q23 Change vs.
2Q231Q234Q223Q222Q221Q232Q22
FINANCIAL RATIOS$/bp%$/bp%
Net interest margin3.38 %3.88 %3.89 %3.48 %2.74 %(50)bp64 bp
Return on average assets1.60 %1.32 %1.35 %1.29 %0.82 %28 78 
Adjusted return on average assets4
1.13 %1.40 %1.52 %1.27 %0.95 %(27)18 
Return on average common equity (“ROCE”)16.40 %13.34 %14.42 %13.85 %9.12 %306 728 
Return on average tangible common equity (“ROTCE”)4
21.10 %17.43 %19.14 %18.23 %12.07 %367 903 
Adjusted ROTCE4
14.59 %18.55 %21.68 %17.89 %14.15 %(396)44 
Noninterest income as a % of total revenue38.82 %19.94 %19.68 %24.30 %27.06 %1,888 1,176 
Adjusted noninterest income as a % of total revenue4
21.63 %19.85 %19.55 %21.37 %25.68 %178 (405)
Efficiency ratio53.87 %55.65 %57.07 %53.56 %65.76 %(178)(1,189)
Adjusted efficiency ratio4
56.90 %52.95 %51.70 %52.42 %59.79 %395 (289)
CAPITAL DATA
CET1 capital ratio*
11.1 %10.4 %10.2 %9.9 %9.8 %72 bp127 bp
Tier 1 capital ratio*12.1 %12.1 %11.9 %11.7 %11.6 %(2)bp47 bp
Total capital ratio*13.6 %13.6 %13.3 %13.1 %13.0 %(3)bp62 bp
Tier 1 leverage ratio*10.5 %10.7 %10.4 %9.8 %9.1 %(17)bp140 bp
Risk-weighted assets (“RWA”) (billions)$71.5 $69.5 $69.2 $68.6 $67.3 $2 3 %$4 6 %
Total equity to total assets 10.53 %11.02 %10.83 %10.32 %10.04 %(49)bp49 bp
Tangible common equity/tangible assets (“TCE/TA”)4
7.71 %7.41 %7.12 %6.64 %6.55 %30 bp116 bp
Period-end shares outstanding (millions)9
559 538 537 537 536 21 4 %23 4 %
Cash dividends declared per common share$0.15 $0.15 $0.15 $0.15 $0.15 $— — %$— — %
Book value per common share$14.58 $14.11 $13.48 $12.99 $13.50 $0.47 3 %$1.08 8 %
Tangible book value per common share4
$11.50 $10.89 $10.23 $9.72 $10.18 $0.61 6 %$1.32 13 %
SELECTED BALANCE SHEET DATA
Loans-to-deposit ratio (period-end balances)93.68 %96.10 %91.51 %86.88 %80.13 %(242)bp1,355 bp
Loans-to-deposit ratio (average balances)97.52 %93.33 %88.73 %82.99 %77.25 %419 bp2,027 bp
Full-time equivalent associates7,327 7,282 7,477 7,569 7,627 45 1 %(300)(4)%
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 
     2Q23 Change vs.
(In millions)2Q231Q234Q223Q222Q221Q232Q22
$%$%
Assets:      
Loans and leases:
Commercial, financial, and industrial (C&I)$33,116 $32,172 $31,780 $31,620 $31,276 $943 3 %$1,840 6 %
Commercial real estate13,891 13,397 13,228 13,021 12,942 493 4 949 7 
Total Commercial47,006 45,570 45,008 44,641 44,218 1,437 3 2,788 6 
Consumer real estate13,475 12,668 12,253 11,864 11,441 808 6 2,035 18 
Credit card and other5
813 807 840 849 870 6 1 (57)(7)
Total Consumer14,289 13,475 13,093 12,712 12,311 814 6 1,978 16 
Loans and leases, net of unearned income61,295 59,045 58,101 57,354 56,529 2,251 4 4,767 8 
Loans held for sale789 650 590 680 870 139 21 (81)(9)
Investment securities9,949 10,317 10,207 10,103 9,628 (368)(4)321 3 
Trading securities1,059 1,122 1,375 1,421 1,392 (63)(6)(333)(24)
Interest-bearing deposits with banks4,523 2,488 1,384 3,241 9,475 2,035 82 (4,952)(52)
Federal funds sold and securities purchased under agreements to resell282 309 482 690 712 (27)(9)(430)(60)
Total interest earning assets77,898 73,929 72,139 73,489 78,606 3,969 5 (708)(1)
Cash and due from banks1,137 987 1,061 1,193 1,133 150 15 4 — 
Goodwill and other intangible assets, net1,720 1,732 1,744 1,757 1,782 (12)(1)(62)(3)
Premises and equipment, net595 603 612 622 636 (8)(1)(41)(7)
Allowance for loan and lease losses(737)(715)(685)(664)(624)(22)(3)(113)(18)
Other assets4,458 4,193 4,082 3,903 3,598 265 6 860 24 
Total assets$85,071 $80,729 $78,953 $80,299 $85,132 $4,342 5 %$(61)— %
Liabilities and Shareholders' Equity:
Deposits:
Savings$23,733 $21,346 $21,971 $22,800 $24,376 $2,387 11 %$(643)(3)%
Time deposits8,279 3,777 2,887 2,671 2,888 4,502 119 5,391 NM
Other interest-bearing deposits14,620 15,184 15,165 14,730 16,172 (564)(4)(1,552)(10)
Total interest-bearing deposits46,632 40,306 40,023 40,202 43,436 6,326 16 3,196 7 
Trading liabilities174 144 335 383 394 30 21 (220)(56)
Short-term borrowings6,946 6,484 2,506 1,416 1,953 462 7 4,993 NM
Term borrowings1,156 1,605 1,597 1,597 1,599 (449)(28)(443)(28)
Total interest-bearing liabilities54,908 48,540 44,461 43,598 47,382 6,368 13 7,526 16 
Noninterest-bearing deposits18,801 21,134 23,466 25,813 27,114 (2,333)(11)(8,313)(31)
Other liabilities2,403 2,161 2,480 2,605 2,085 242 11 318 15 
Total liabilities76,112 71,835 70,406 72,016 76,581 4,277 6 (469)(1)
Shareholders' Equity:
Preferred stock520 1,014 1,014 1,014 1,014 (494)(49)(494)(49)
Common stock349 336 336 335 335 13 4 14 4 
Capital surplus5,324 4,863 4,840 4,812 4,791 461 9 533 11 
Retained earnings3,830 3,595 3,430 3,254 3,079 235 7 751 24 
Accumulated other comprehensive loss, net(1,359)(1,208)(1,367)(1,427)(963)(151)(12)(396)(41)
Combined shareholders' equity8,664 8,599 8,251 7,987 8,255 65 1 409 5 
Noncontrolling interest295 295 295 295 295 — — — — 
Total shareholders' equity8,960 8,895 8,547 8,283 8,551 65 1 409 5 
Total liabilities and shareholders' equity$85,071 $80,729 $78,953 $80,299 $85,132 $4,342 5 %$(61)— %
Memo:
Total Deposits$65,433 $61,440 $63,489 $66,014 $70,550 $3,993 6 %$(5,117)(7)%
Unfunded Loan Commitments:
Commercial$22,084 $21,806 $22,833 $23,706 $23,251 $278 1 %$(1,168)(5)%
Consumer$4,400 $4,404 $4,329 $4,248 $3,972 $(4)— %$428 11 %
Numbers may not foot due to rounding. See footnote disclosures on page 20.
11

CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited 
     2Q23 Change vs.
(In millions)2Q231Q234Q223Q222Q221Q232Q22
$%$%
Assets:      
Loans and leases:      
Commercial, financial, and industrial (C&I)$32,423 $31,558 $31,562 $31,120 $30,963 $865 3 %$1,461 5 %
Commercial real estate13,628 13,290 13,095 12,926 12,626 338 3 1,001 8 
Total Commercial46,051 44,848 44,657 44,046 43,589 1,203 3 2,462 6 
Consumer real estate13,058 12,401 12,049 11,633 11,120 658 5 1,938 17 
Credit card and other5
815 825 858 864 867 (10)(1)(52)(6)
Total Consumer13,873 13,226 12,907 12,496 11,987 647 5 1,886 16 
Loans and leases, net of unearned income59,924 58,074 57,564 56,543 55,576 1,850 3 4,348 8 
Loans held-for-sale731 596 597 761 1,027 135 23 (296)(29)
Investment securities10,192 10,263 10,132 10,315 9,781 (71)(1)411 4 
Trading securities1,110 1,284 1,311 1,342 1,509 (174)(14)(399)(26)
Interest-bearing deposits with banks3,110 1,468 2,618 6,341 10,989 1,642 112 (7,879)(72)
Federal funds sold and securities purchased under agreements to resell279 392 583 661 857 (113)(29)(578)(67)
Total interest earning assets75,346 72,076 72,805 75,963 79,739 3,270 5 (4,393)(6)
Cash and due from banks1,024 1,035 1,118 1,246 1,281 (11)(1)(257)(20)
Goodwill and other intangibles assets, net1,726 1,738 1,750 1,767 1,789 (12)(1)(63)(4)
Premises and equipment, net598 607 616 629 645 (9)(2)(47)(7)
Allowances for loan and lease losses(728)(692)(675)(639)(621)(36)(5)(107)(17)
Other assets4,338 4,076 3,907 3,585 3,493 262 6 845 24 
Total assets$82,304 $78,841 $79,521 $82,551 $86,326 $3,463 4 %$(4,022)(5)%
Liabilities and shareholders' equity:
Deposits:
Savings$21,542 $21,824 $22,477 $23,569 $24,841 $(282)(1)%$(3,299)(13)%
Time deposits5,520 3,336 2,720 2,759 3,040 2,184 65 2,480 82 
Other interest-bearing deposits14,719 14,790 14,658 15,102 16,273 (71)— (1,554)(10)
Total interest-bearing deposits41,781 39,950 39,855 41,431 44,154 1,831 5 (2,373)(5)
Trading liabilities216 324 353 372 585 (108)(33)(369)(63)
Short-term borrowings7,999 3,695 1,821 1,711 1,710 4,304 116 6,289 NM
Term borrowings1,428 1,602 1,597 1,598 1,597 (174)(11)(169)(11)
Total interest-bearing liabilities51,424 45,572 43,626 45,112 48,046 5,852 13 3,378 7 
Noninterest-bearing deposits19,664 22,274 25,021 26,701 27,791 (2,610)(12)(8,127)(29)
Other liabilities2,187 2,289 2,459 2,068 1,875 (102)(4)312 17 
Total liabilities73,275 70,134 71,106 73,882 77,712 3,141 4 (4,437)(6)
Shareholders' Equity:
Preferred stock986 1,014 1,014 1,014 1,014 (28)(3)(28)(3)
Common stock 337 336 336 335 335 1 — 2 1 
Capital surplus4,891 4,851 4,826 4,802 4,778 40 1 113 2 
Retained earnings3,759 3,518 3,358 3,175 3,051 241 7 708 23 
Accumulated other comprehensive loss, net(1,241)(1,307)(1,414)(953)(859)66 5 (382)(45)
Combined shareholders' equity8,734 8,411 8,119 8,373 8,318 323 4 416 5 
Noncontrolling interest295 295 295 295 295 — — — — 
Total shareholders' equity9,029 8,707 8,415 8,669 8,614 322 4 415 5 
Total liabilities and shareholders' equity$82,304 $78,841 $79,521 $82,551 $86,326 $3,463 4 %$(4,022)(5)%
Memo:
Total Deposits$61,445 $62,224 $64,876 $68,133 $71,945 $(779)(1)%$(10,500)(15)%
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 
   2Q23 Change vs.
2Q231Q234Q223Q222Q221Q232Q22
(In millions, except rates)Income/ExpenseRateIncome/ExpenseRateIncome/ExpenseRateIncome/ExpenseRateIncome/ExpenseRateIncome/ExpenseIncome/Expense
$%$%
Interest earning assets/Interest income:   
Loans and leases, net of unearned income:
Commercial$727 6.34 %$668 6.04 %$607 5.40 %$496 4.47 %$382 3.52 %$59 9 %$345 90 %
Consumer153 4.39 141 4.26 134 4.14 124 3.94 112 3.74 12 9 41 37 
Loans and leases, net of unearned income880 5.89 809 5.64 742 5.12 619 4.35 494 3.57 71 9 386 78 
Loans held-for-sale14 7.58 11 7.08 9 6.34 9 4.91 10 3.89 3 27 4 40 
Investment securities63 2.49 63 2.45 61 2.41 55 2.14 46 1.87 — — 17 37 
Trading securities19 6.69 20 6.21 19 5.79 15 4.55 13 3.43 (1)(5)6 46 
Interest-bearing deposits with banks40 5.13 17 4.60 24 3.61 34 2.15 22 0.79 23 135 18 82 
Federal funds sold and securities purchased under agreements3 4.85 4 4.35 5 3.48 2 2.04 1 0.66 (1)(25)2 NM
Interest income$1,019 5.42 %$923 5.18 %$860 4.70 %$737 3.86 %$586 2.95 %$96 10 %$433 74 %
Interest bearing liabilities/Interest expense:
Interest-bearing deposits:
Savings$141 2.63 %$96 1.79 %$67 1.19 %$18 0.31 %$5 0.08 %$45 47 %$136 NM
Time deposits49 3.56 16 1.96 6 0.90 2 0.50 4 0.50 33 NM 45 NM
Other interest-bearing deposits75 2.06 58 1.59 39 1.05 21 0.56 9 0.22 17 29 66 NM
Total interest-bearing deposits265 2.55 171 1.73 112 1.12 42 0.41 18 0.16 94 55 247 NM
Trading liabilities2 3.82 3 3.83 3 3.59 3 3.03 4 2.52 (1)(33)(2)(50)
Short-term borrowings99 4.94 38 4.16 13 2.85 7 2.22 2 0.58 61 NM 97 NM
Term borrowings19 5.21 20 4.98 19 4.81 18 4.57 17 4.38 (1)(5)2 12 
Interest expense385 3.00 232 2.06 148 1.35 71 0.63 41 0.34 153 66 344 NM
Net interest income - tax equivalent basis635 2.42 691 3.11 712 3.35 666 3.23 545 2.61 (56)(8)90 17 
Fully taxable equivalent adjustment(4)0.96 (4)0.76 (4)0.54 (4)0.25 (3)0.13 — — (1)(33)
Net interest income$631 3.38 %$688 3.88 %$709 3.89 %$662 3.48 %$542 2.74 %$(57)(8)%$89 16 %
Memo:
Total loan yield5.89 %5.64 %5.12 %4.35 %3.57 %
Total deposit cost1.73 %1.11 %0.69 %0.25 %0.10 %
Total funding cost2.17 %1.38 %0.85 %0.39 %0.22 %
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 2Q23 change vs.
(In millions, except ratio data)2Q231Q234Q223Q222Q221Q232Q22
$%$%
Nonperforming loans and leases
Commercial, financial, and industrial (C&I)$184 $204 $153 $116 $129 $(20)(10)%$55 42 %
Commercial real estate73 63 9 10 11 10 15 62 NM
Consumer real estate144 155 152 163 159 (11)(7)(15)(9)
Credit card and other2 2 2 3 3 — 3 — (13)
Total nonperforming loans and leases$402 $424 $316 $292 $301 $(21)(5)%$102 34 %
Asset Quality Ratio
Nonperforming loans and leases to loans and leases
Commercial, financial, and industrial (C&I)0.55 %0.63 %0.48 %0.37 %0.41 %
Commercial real estate0.52 0.47 0.07 0.08 0.08 
Consumer real estate1.07 1.22 1.24 1.37 1.39 
Credit card and other0.27 0.29 0.27 0.31 0.29 
Total nonperforming loans and leases to loans and leases0.66 %0.72 %0.54 %0.51 %0.53 %
Numbers may not foot due to rounding.



CONSOLIDATED LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING
Quarterly, Unaudited
As of2Q23 change vs.
(In millions)2Q231Q234Q223Q222Q221Q232Q22
$%$%
Loans and leases 90 days or more past due and accruing
Commercial, financial, and industrial (C&I)$1 $— $11 $1 $1 $1 148 %$— 73 %
Commercial real estate— — — — — — NM — NM
Consumer real estate8 7 18 17 14 1 17 (6)(43)
Credit card and other5 5 3 6 3 — 4 2 72 
Total loans and leases 90 days or more past due and accruing$14 $12 $33 $24 $17 $2 13 %$(3)(20)%
Numbers may not foot due to rounding.
14


CONSOLIDATED NET CHARGE-OFFS (RECOVERIES)
Quarterly, Unaudited
As of2Q23 change vs.
(In millions, except ratio data)2Q231Q234Q223Q222Q221Q232Q22
Charge-off, Recoveries and Related Ratios$%$%
Gross Charge-offs
Commercial, financial, and industrial (C&I)$19 $14 $24 $13 $12 $5 35 %$7 55 %
Commercial real estate8 2 — 1 — 6 NM 8 NM
Consumer real estate1 1 1 1 2 — (8)(2)(69)
Credit card and other5 5 7 7 7 (1)(12)(2)(31)
Total gross charge-offs$33 $22 $32 $21 $21 $11 48 %$11 54 %
Gross Recoveries
Commercial, financial, and industrial (C&I)$(5)$(2)$(3)$(2)$(1)$(2)(104)%$(4)NM
Commercial real estate(1)— — — (1)— NM — 20 
Consumer real estate(3)(2)(2)(6)(6)— (16)3 52 
Credit card and other(1)(1)(1)(1)(1)— 3 — — 
Total gross recoveries$(9)$(6)$(6)$(9)$(9)$(3)(53)%$(1)(7)%
Net Charge-offs (Recoveries)
Commercial, financial, and industrial (C&I)$14 $12 $21 $11 $11 $2 21 %$3 28 %
Commercial real estate8 2 — — (1)6 NM 8 NM
Consumer real estate(2)(2)(2)(5)(3)— (29)1 40 
Credit card and other3 4 6 5 5 (1)(14)(2)(38)
Total net charge-offs$23 $16 $26 $12 $12 $7 47 %$11 88 %
Annualized Net Charge-off (Recovery) Rates
Commercial, financial, and industrial (C&I)0.18 %0.15 %0.27 %0.14 %0.14 %
Commercial real estate0.23 0.05 — 0.01 (0.03)
Consumer real estate(0.06)(0.05)(0.05)(0.17)(0.12)
Credit card and other1.65 1.93 2.76 2.46 2.49 
Total loans and leases0.16 %0.11 %0.18 %0.08 %0.09 %
Numbers may not foot due to rounding.
15


CONSOLIDATED ALLOWANCE FOR LOAN AND LEASE LOSSES AND RESERVE FOR UNFUNDED COMMITMENTS
Quarterly, Unaudited
As of2Q23 Change vs.
(In millions)2Q231Q234Q223Q222Q221Q232Q22
Summary of Changes in the Components of the Allowance For Credit Losses$%$%
Allowance for loan and lease losses - beginning$715 $685 $664 $624 $622 $30 4 %$93 15 %
Cumulative effect of change in accounting principle:
Commercial, financial, and industrial (C&I)— 1 — — — (1)(100)— NM
Commercial real estate— — — — — — (100)— NM
Consumer real estate— (7)— — — 7 100 — NM
Credit card and other— — — — — — 100 — NM
Total cumulative effect of change in accounting principles— (6)— — — 6 100 — NM
Allowance for loan and lease losses - beginning, adjusted$715 $679 $664 $624 $622 $36 5 %$93 15 %
Charge-offs:
Commercial, financial, and industrial (C&I)(19)(14)(24)(13)(12)(5)(35)(7)(55)
Commercial real estate(8)(2)— (1)— (6)NM (8)NM
Consumer real estate(1)(1)(1)(1)(2)— 8 2 69 
Credit card and other(5)(5)(7)(7)(7)1 12 2 31 
Total charge-offs(33)(22)(32)(21)(21)(11)(48)(12)(55)
Recoveries:
Commercial, financial, and industrial (C&I)5 2 3 2 1 2 104 4 NM
Commercial real estate1 — — — 1 — NM — (20)
Consumer real estate3 2 2 6 6 — 16 (3)(53)
Credit card and other1 1 1 1 1 — (3)— — 
Total Recoveries9 6 6 9 9 3 56 — 3 
Provision for loan and lease losses:
Commercial, financial, and industrial (C&I)15 27 35 32 (2)(12)(43)18 NM
Commercial real estate16 6 (2)8 (12)11 NM 28 NM
Consumer real estate10 15 5 5 16 (5)(33)(7)(36)
Credit card and other3 4 9 7 12 (1)(25)(9)(75)
Total provision for loan and lease losses:
45 52 46 52 14 (7)(13)31 NM
Allowance for loan and lease losses - ending$737 $715 $685 $664 $624 $22 3 %$113 18 %
Reserve for unfunded commitments - beginning$85 $87 $88 $80 $64 $(2)(3)%$21 32 %
Cumulative effect of change in accounting principle— — — — — — NM — NM
Acquired reserve for unfunded commitments— — — — — — NM — NM
Provision for unfunded commitments5 (2)(1)8 16 7 NM (11)(69)
Reserve for unfunded commitments - ending$90 $85 $87 $88 $80 $5 5 %$10 12 %
Total allowance for credit losses- ending$827 $800 $771 $752 $704 $27 3 %$123 17 %
Numbers may not foot due to rounding.
16


CONSOLIDATED ASSET QUALITY RATIOS - ALLOWANCE FOR LOAN AND LEASE LOSSES
Quarterly, Unaudited
As of
2Q231Q234Q223Q222Q22
Allowance for loans and lease losses to loans and leases
Commercial, financial, and industrial (C&I)0.98 %1.01 %0.97 %0.93 %0.88 %
Commercial real estate1.14 %1.12 %1.10 %1.14 %1.09 %
Consumer real estate1.64 %1.65 %1.63 %1.63 %1.60 %
Credit card and other3.79 %3.86 %3.72 %3.32 %3.01 %
Total allowance for loans and lease losses to loans and leases1.20 %1.21 %1.18 %1.16 %1.10 %
Allowance for loans and lease losses to nonperforming loans and leases
Commercial, financial, and industrial (C&I)177 %159 %202 %253 %213 %
Commercial real estate219 %238 %1,554 %1,422 %1,331 %
Consumer real estate154 %135 %131 %119 %115 %
Credit card and other1,384 %1,439 %1,364 %1,070 %1,021 %
Total allowance for loans and lease losses to nonperforming loans and leases183 %169 %217 %228 %207 %
17

REGIONAL BANKING
Quarterly, Unaudited 
     2Q23 Change vs.
 2Q231Q234Q223Q222Q221Q232Q22
$/bp%$/bp%
Income Statement (millions)      
Net interest income$612 $586 $544 $518 $465 $26 4 %$147 32 %
Noninterest income109 107 107 110 114 2 2 (5)(4)
Total revenue721 693 650 627 579 28 4 142 25 
Noninterest expense321 320 321 302 299 1 — 22 7 
Pre-provision net revenue3
399 373 330 326 280 26 7 119 43 
Provision for credit losses43 41 30 43 52 2 5 (9)(17)
Income before income tax expense356 331 300 283 228 25 8 128 56 
Income tax expense84 78 70 66 53 6 8 31 58 
Net income$272 $253 $229 $216 $175 $19 8 %$97 55 %
Average Balances (billions)
Total loans and leases$42.9 $41.8 $41.1 $40.1 $39.2 $1.1 3 %$3.7 9 %
Interest-earning assets42.9 41.8 41.1 40.1 39.2 1.1 3 3.7 9 
Total assets45.6 44.5 43.8 42.8 41.9 1.1 2 3.7 9 
Total deposits55.9 57.8 59.6 61.9 64.5 (1.9)(3)(8.6)(13)
Key Metrics
Net interest margin6
5.75 %5.71 %5.27 %5.15 %4.78 %4 bp97 bp
Efficiency ratio 44.59 %46.21 %49.30 %48.11 %51.67 %(162)bp(708)bp
Loans-to-deposits ratio (period-end balances)74.98 %73.95 %70.81 %66.77 %62.77 %103 bp1,221 bp
Loans-to-deposits ratio (average-end balances)76.72 %72.39 %69.02 %64.78 %60.75 %433 bp1,597 bp
Return on average assets (annualized)2.39 %2.31 %2.08 %2.01 %1.67 %8 bp72 bp
Return on allocated equity7
29.55 %27.96 %25.21 %24.14 %19.84 %159 bp971 bp
Financial center locations417 417 417 417 417 — — %— — %
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 
     2Q23 Change vs.
 2Q231Q234Q223Q222Q221Q232Q22
$/bp%$/bp%
Income Statement (millions)      
Net interest income$130 $125 $134 $138 $141 $5 4 %$(11)(8)%
Noninterest income48 53 47 64 96 (5)(9)(48)(50)
Total revenue177 179 181 203 237 (2)(1)(60)(25)
Noninterest expense88 93 93 105 114 (5)(5)(26)(23)
Pre-provision net revenue3
89 86 87 97 122 3 3 (33)(27)
Provision for credit losses10 10 18 17 (18)— — 28 NM
Income before income tax expense79 76 70 80 141 3 4 (62)(44)
Income tax expense19 18 17 19 34 1 6 (15)(44)
Net income$60 $57 $53 $61 $106 $3 5 %$(46)(43)%
Average Balances (billions)
Total loans and leases$16.5 $15.8 $15.9 $15.9 $15.8 $0.7 5 %$0.7 4 %
Interest-earning assets18.7 18.1 18.4 18.6 19.1 0.6 3 (0.4)(2)
Total assets20.0 19.4 19.6 19.7 20.2 0.6 3 (0.2)(1)
Total deposits3.1 3.6 4.3 5.2 6.3 (0.5)(14)(3.2)(51)
Key Metrics
Fixed income product average daily revenue (thousands)$348 $437 $403 $524 $612 $(89)(20)%$(264)(43)%
Net interest margin6
2.77 %2.80 %2.89 %2.96 %2.96 %(3)bp(19)bp
Efficiency ratio 49.60 %52.19 %51.69 %52.03 %48.32 %(259)bp128 bp
Loans-to-deposits ratio (period-end balances)559 %504 %426 %378 %268 %5,500 bp29,085 bp
Loans-to-deposits ratio (average-end balances)537 %440 %370 %307 %250 %9,700 bp28,666 bp
Return on average assets (annualized)1.20 %1.20 %1.06 %1.22 %2.11 %— bp(91)bp
Return on allocated equity7
14.92 %14.69 %13.05 %14.74 %25.76 %23 bp(1,084)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
 2Q23 Change vs.
 2Q231Q234Q223Q222Q221Q232Q22
$%$%
Income Statement (millions)
Net interest income/(expense)$(111)$(24)$31 $6 $(64)$(87)NM $(47)(73)%
Noninterest income244 11 21 39 (8)233 NM 252 NM
Total revenues133 (13)52 45 (72)146 NM 205 NM
Noninterest expense146 64 90 61 75 82 126 71 95 
Pre-provision net revenue3
(13)(77)(38)(17)(147)64 83 134 91 
Provision for credit losses(4)(1)(3)— (4)(3)NM — — 
Income before income tax expense(10)(76)(35)(17)(144)66 87 134 93 
Income tax expense (benefit)(7)(21)(23)(8)(40)14 67 33 83 
Net income/(loss)$(3)$(55)$(12)$(9)$(104)$52 95 %$101 97 %
Average Balance Sheet (billions)    
Interest bearing assets$13.7 $12.1 $13.3 $17.3 $21.5 $1.6 13 %$(7.8)(36)%
Total assets16.7 14.9 16.0 20.0 24.1 1.8 12 (7.4)(31)
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 an insignificant amount of commercial credit card balances.
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; all other periods include 27.5 million shares based on the original maximum conversion rate..
9 2Q23 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)2Q231Q234Q223Q222Q22
Tangible Common Equity (Non-GAAP)    
(A) Total equity (GAAP)$8,960 $8,895 $8,547 $8,283 $8,551 
Less: Noncontrolling interest (a)295 295 295 295 295 
Less: Preferred stock (a)520 1,014 1,014 1,014 1,014 
(B) Total common equity$8,144 $7,586 $7,238 $6,974 $7,242 
Less: Intangible assets (GAAP) (b)1,720 1,732 1,744 1,757 1,782 
(C) Tangible common equity (Non-GAAP)$6,424 $5,853 $5,494 $5,217 $5,459 
Tangible Assets (Non-GAAP) 
(D) Total assets (GAAP)$85,071 $80,729 $78,953 $80,299 $85,132 
Less: Intangible assets (GAAP) (b)1,720 1,732 1,744 1,757 1,782 
(E) Tangible assets (Non-GAAP)$83,351 $78,997 $77,209 $78,542 $83,350 
Period-end Shares Outstanding     
(F) Period-end shares outstanding559 538 537 537 536 
Ratios
(A)/(D) Total equity to total assets (GAAP)10.53 %11.02 %10.83 %10.32 %10.04 %
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)7.71 %7.41 %7.12 %6.64 %6.55 %
(B)/(F) Book value per common share (GAAP)$14.58 $14.11 $13.48 $12.99 $13.50 
(C)/(F) Tangible book value per common share (Non-GAAP)$11.50 $10.89 $10.23 $9.72 $10.18 
(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)2Q231Q234Q223Q222Q22
Adjusted Diluted EPS
Net income available to common shareholders ("NIAC") (GAAP)a$317 $243 $258 $257 $166 
Plus Tax effected notable items (Non-GAAP) (a)$(98)$16 $34 $(5)$29 
Adjusted net income available to common shareholders (Non-GAAP)b$219 $259 $293 $252 $195 
Diluted Shares (GAAP)8
c561 572 572 570 569 
Diluted EPS (GAAP)a/c$0.56 $0.43 $0.45 $0.45 $0.29 
Adjusted diluted EPS (Non-GAAP)b/c$0.39 $0.45 $0.51 $0.44 $0.34 
Adjusted Net Income ("NI") and Adjusted Return on Assets ("ROA")
Net Income ("NI") (GAAP)$329 $256 $270 $268 $177 
Plus Tax effected notable items (Non-GAAP) (a)$(98)$16 $34 $(5)$29 
Adjusted NI (Non-GAAP)$231 $271 $304 $263 $206 
NI (annualized) (GAAP)d$1,320 $1,037 $1,070 $1,063 $709 
Adjusted NI (annualized) (Non-GAAP)e$928 $1,100 $1,206 $1,045 $823 
Average assets (GAAP)f$82,304 $78,841 $79,521 $82,551 $86,326 
ROA (GAAP)d/f1.60 %1.32 %1.35 %1.29 %0.82 %
Adjusted ROA (Non-GAAP)e/f1.13 %1.40 %1.52 %1.27 %0.95 %
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$1,270 $987 $1,025 $1,020 $666 
Adjusted Net income available to common shareholders (annualized) (Non-GAAP)h$878 $1,050 $1,161 $1,001 $781 
Average Common Equity (GAAP)i$7,747 $7,398 $7,106 $7,360 $7,305 
Intangible Assets (GAAP) (b)1,726 1,738 1,750 1,767 1,789 
Adjusted Average Tangible Common Equity (Non-GAAP)j$6,021 $5,659 $5,356 $5,593 $5,516 
ROCE (GAAP)g/i16.40 %13.34 %14.42 %13.85 %9.12 %
ROTCE (Non-GAAP)g/j21.10 %17.43 %19.14 %18.23 %12.07 %
Adjusted ROTCE (Non-GAAP)h/j14.59 %18.55 %21.68 %17.89 %14.15 %
(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)2Q231Q234Q223Q222Q22
Adjusted Noninterest Income as a % of Total Revenue
Noninterest income (GAAP)k$400 $171 $174 $213 $201 
Plus notable items (GAAP) (a)(225)— (1)(32)(13)
Adjusted noninterest income (Non-GAAP)l$175 $171 $173 $181 $188 
Revenue (GAAP)m$1,031 $859 $882 $875 $743 
Taxable-equivalent adjustment4 4 4 4 3 
Revenue- Taxable-equivalent (Non-GAAP)1,035 863 886 878 746 
Plus notable items (GAAP) (a)(225)— (1)(32)(13)
Adjusted revenue (Non-GAAP)n$810 $863 $885 $847 $733 
Noninterest income as a % of total revenue (GAAP)k/m38.82 %19.94 %19.68 %24.30 %27.06 %
Adjusted noninterest income as a % of total revenue (Non-GAAP)l/n21.63 %19.85 %19.55 %21.37 %25.68 %
Adjusted Efficiency Ratio
Noninterest expense (GAAP)o$555 $478 $503 $468 $489 
Plus notable items (GAAP) (a)(95)(21)(46)(25)(50)
Adjusted noninterest expense (Non-GAAP)p$461 $457 $458 $444 $438 
Revenue (GAAP)q$1,031 $859 $882 $875 $743 
Taxable-equivalent adjustment4 4 4 4 3 
Revenue- Taxable-equivalent (Non-GAAP)1,035 863 886 878 746 
Plus notable items (GAAP) (a)(225)— (1)(32)(13)
Adjusted revenue (Non-GAAP)r$810 $863 $885 $847 $733 
Efficiency ratio (GAAP)o/q53.87 %55.65 %57.07 %53.56 %65.76 %
Adjusted efficiency ratio (Non-GAAP)p/r56.90 %52.95 %51.70 %52.42 %59.79 %
(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
($s in millions)
Period-endAverage
($s in millions)2Q231Q232Q23 vs. 1Q232Q231Q232Q23 vs. 1Q23
Loans excluding LMC
Total Loans (GAAP)$61,295 $59,045 $2,250 4 %$59,924 $58,074 $1,850 3 %
LMC (GAAP)2,6912,040651 32 %2,2621,875388 21 %
Total Loans excl. LMC (Non-GAAP)58,604 57,005 1,599 3 %57,662 56,199 1,463 3 %
Total Consumer (GAAP)14,28913,475814 6 %13,87313,226647 5 %
Total Commercial excl. LMC (Non-GAAP)44,315 43,530 785 2 %43,789 42,973 816 2 %
Total CRE (GAAP)$13,891 $13,397 $494 4 %$13,628 $13,290 $338 3 %
Total C&I excl. LMC (Non-GAAP)$30,424 $30,133 $291 1 %$30,161 $29,683 $478 2 %
Numbers may not foot due to rounding.
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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.

25