EX-99.1 2 a3q2022earningsrelease.htm 3Q2022 EARNINGS RELEASE Document






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First Horizon Corporation Reports Third Quarter 2022 Net Income Available to Common Shareholders of
$257 Million, or EPS of $0.45; $252 Million, or $0.44, on an Adjusted Basis*

Pre-provision net revenue up 59% from the prior quarter and up 37% on an adjusted basis*

ROTCE of 18.2% and adjusted ROTCE of 17.9% with tangible book value per share of $9.72*


MEMPHIS, TN (October 18, 2022) – First Horizon Corporation (NYSE: FHN or “First Horizon”) today reported third quarter net income available to common shareholders ("NIAC") of $257 million, or earnings per share of $0.45, compared with second quarter 2022 NIAC of $166 million, or earnings per share of $0.29.

Third quarter 2022 results were impacted by a net $5 million after-tax, or $0.01 per share, increase in notable items compared with a net $29 million, or $0.05 per share, reduction in second quarter 2022. Excluding notable items, adjusted third quarter 2022 NIAC of $252 million, or $0.44 per share, increased from $195 million, or $0.34 per share in second quarter 2022. Results reflect a $0.04 per share reduction tied to provision for credit losses as well as the impact of the suspension of share repurchases related to the proposed TD transaction.

"This quarter's results, highlighted by high-teens revenue growth, reflect the power of our asset-sensitive balance sheet and attractive mix of higher-growth geographies and specialty businesses,” said Chairman and Chief Executive Officer Bryan Jordan." The team continues to leverage the benefits of our completed integration to deliver value-added products with exceptional service which helped drive four percent loan growth before the impact of paycheck protection program and mortgage warehouse loans. While we are keeping a watchful eye on the macroeconomic landscape, credit quality remains strong, and we have great confidence in our future prospects associated with the proposed transaction with TD Bank Group.”

Notable Items
Notable Items
Quarterly, Unaudited ($s in millions, except per share data)
3Q222Q223Q21
Summary of Notable Items:
Merger/acquisition/transaction-related items:
IBKC:
Other noninterest income$— $— $— 
Merger/acquisition expense(3)(13)(46)
Total IBKC merger/acquisition- related items(3)(13)(45)
TD:
Transaction-related expense(21)(25)— 
Total TD transaction-related items(21)(25)— 
Total Net Merger/acquisition/transaction- related items:(24)(38)(45)
Other notable items:
Gain/(loss) on TruPS redemption (other noninterest income)— — (23)
Gain on mortgage servicing rights (mortgage banking and title)— 12 — 
Gain on sale of title services business (other noninterest income)21 — — 
Gain related to equity securities investment (other noninterest income)10 — — 
Visa derivative valuation adjustment (other noninterest expense)— (12)— 
Total net other notable items:31 — (23)
Total Notable items (pre-tax)$7 $(38)$(68)
Total Notable items (after-tax)5 (29)(51)
EPS impact of notable items$0.01 $(0.05)$(0.09)
Numbers may not foot due to rounding
Third quarter pre-tax net notable items include TD transaction-related costs of $21 million, and IBKC merger-related expense of $3 million. Other notable items reflect a $21 million gain from the July 30th sale of the title services business and a $10 million equity securities investment gain.

*ROTCE, PPNR, Core net interest income (NII), tangible book value per share, loans and leases excluding PPP and/or 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 22.
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Third Quarter 2022 Versus Second Quarter 2022 Highlights
•Total revenue of $875 million increased $132 million and adjusted revenue of $846 million increased $113 million, or 15%, reflecting strength in net interest income.
•Net interest income of $662 million increased $120 million, or 22%, despite a $6 million reduction in net merger-related and PPP benefits. Core net interest income was up $127 million as the benefit of higher rates, loan balances and investment portfolio income was partially offset by higher funding costs.
•Noninterest income of $213 million increased $12 million and included a $19 million increase in notable items. Adjusted noninterest income of $181 million decreased $7 million as higher deferred compensation income and other noninterest income was more than offset by reductions in mortgage banking, title and fixed income.
•Noninterest expense of $468 million decreased $21 million and reflected $25 million decrease in notable items. Adjusted noninterest expense of $444 million increased $6 million largely as a $16 million increase in deferred compensation expense was partially offset by a reduction in salaries and employee benefits and other noninterest expense.
•Provision expense of $60 million compared with $30 million in second quarter 2022 reflecting the impact of loan growth, revised macroeconomic outlook and a preliminary estimate of $20 million for potential losses related to Hurricane Ian.
•Average interest-earning assets of $76.0 billion decreased $3.8 billion largely as a $1.0 billion increase in loans was more than offset by a $4.6 billion decrease in interest-bearing deposits with banks.
•Average loans before the impact of PPP up $1.2 billion as an increase in commercial balances and consumer real estate was partially offset by a $574 million decrease in loans to mortgage companies ("LMC").
•Period-end loans before the impact of PPP remained increased $1.1 billion, or 2%, driven by a $677 million increase in commercial. Period-end commercial loans excluding PPP and LMC rose 3%.
•Average deposits of $68.1 billion decreased $3.8 billion, or 5%, driven by a $2.7 billion decrease in interest-bearing. Total deposit costs of 25 basis points increased 15 basis points.
•Allowance for credit losses ("ACL") to loans ratio of 1.31% remained relatively stable compared to 1.24% at June 30, 2022. The ACL to nonperforming loans ratio of 258% improved from 234% at June 30, 2022.
•Net charge-offs of $12 million in third quarter 2022 remained relatively stable; nonperforming loans of $292 million decreased 3% linked quarter and the nonperforming loan ratio of 0.51% improved from 0.53%.
•ROCE of 13.9%; ROTCE of 18.2%; Adjusted ROTCE of 17.9%; CET 1 ratio of 9.9%; and total capital ratio of 13.1%.
•Tangible book value per share of $9.72 at September 30, 2022 compared with $10.18 at June 30, 2022 and reflected a $0.87 reduction tied to the mark-to-market valuation adjustment on the available-for-sale securities portfolio and cash flow hedges.
Strategic Update
IBKC Merger
•On track to deliver approximately $200 million of targeted annualized IBKC merger net cost saves by 4Q22.
•Achieved $184 million of annualized net cost saves in 3Q22.
Proposed Acquisition by TD
•Expect deal to close in 1Q of TD’s 2023 fiscal year.
–Continued progress on integration planning and Legal Day One readiness
–Federal Reserve and OCC comment period closed with over 300 letters of support

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–Public meeting with Fed and OCC completed August 18, 2022
–Regulatory approval process remains on track


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SUMMARY RESULTS
Quarterly, Unaudited
3Q22 Change vs.
($s in millions, except per share and balance sheet data)3Q222Q223Q212Q223Q21
$/bp%$/bp%
Income Statement
Interest income - taxable equivalent1
$737 $586 $536 $151 26 %$201 38 %
Interest expense- taxable equivalent1
71 41 41 30 73 30 73 
Net interest income- taxable equivalent666 545 495 121 22 171 35 
Less: Taxable-equivalent adjustment4 3 3 1 33 1 33 
Net interest income662 542 492 120 22 170 35 
Noninterest income213 201 247 12 6 (34)(14)
      Total revenue875 743 738 132 18 137 19 
Noninterest expense468 489 526 (21)(4)(58)(11)
Pre-provision net revenue3
406 255 213 151 59 193 91 
Provision for credit losses60 30 (85)30 100 145 NM
Income before income taxes346 225 298 121 54 48 16 
Provision for income taxes78 48 63 30 63 15 24 
Net income268 177 235 91 51 33 14 
Net income attributable to noncontrolling interest3 3 3 — — — — 
Net income attributable to controlling interest265 174 232 91 52 33 14 
Preferred stock dividends8 8 8 — — — — 
Net income available to common shareholders$257 $166 $224 $91 55 %$33 15 %
Adjusted net income4
$263 $205 $286 $58 28 %$(23)(8)%
Adjusted net income available to common shareholders4
$252 $195 $275 $57 29 %$(23)(8)%
Common stock information
EPS$0.45 $0.29 $0.41 $0.16 54 %$0.04 10 %
Adjusted EPS4
$0.44 $0.34 $0.50 $0.10 29 %$(0.06)(12)%
Diluted shares8
570 569 550 1 — %20 4 %
Key performance metrics
Net interest margin3.49 %2.74 %2.41 %75 bp108 bp
Efficiency ratio53.56 65.76 71.21 (1,220)(1,765)
Adjusted efficiency ratio4
52.42 59.79 62.87 (737)(1,045)
Effective income tax rate22.58 21.30 21.13 128 145 
Return on average assets1.29 0.82 1.05 47 24 
Adjusted return on average assets4
1.27 0.95 1.28 32 (1)
Return on average common equity (“ROCE")13.9 9.1 11.4 473 242 
Return on average tangible common equity (“ROTCE”)4
18.2 12.1 15.0 616 328 
Adjusted ROTCE4
17.9 14.2 18.4 374 (47)
Noninterest income as a % of total revenue24.30 27.06 33.39 (276)(909)
Adjusted noninterest income as a % of total revenue4
21.37 %25.68 %35.14 %(431)bp(1,377)bp
Balance Sheet (billions)
Average loans$56.5 $55.6 $55.5 $1.0 2 %$1.0 2 %
Average deposits68.1 71.9 73.7 (3.8)(5)(5.6)(8)
Average assets82.6 86.3 88.4 (3.8)(4)(5.8)(7)
Average common equity$7.4 $7.3 $7.8 $0.1 1 %$(0.4)(5)%
Asset Quality Highlights
Allowance for credit losses to loans and leases1.31 %1.24 %1.45 %8 bp(14)bp
Net charge-off ratio0.08 0.09 0.02 (1)6 
Nonperforming loan and leases ratio0.51 %0.53 %0.63 %(2)bp(12)bp
Capital Ratio Highlights (current quarter is an estimate)
Common Equity Tier 19.9 %9.8 %10.1 %12 bp(16)bp
Tier 111.7 11.6 11.2 8 46 
Total Capital13.1 13.0 12.6 13 45 
Tier 1 leverage9.8 %9.1 %8.1 %67 bp165 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 21.


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Third Quarter 2022 versus Second Quarter 2022
Net interest income
Net interest income of $662 million increased $120 million despite a $6 million reduction tied to net merger-related and PPP benefits. Core net interest income increased $127 million as the benefit of higher rates, loan balances and investment portfolio income was partially offset by higher funding costs. Net interest margin of 3.49% improved 75 basis points largely as the benefit of higher rates, loan and securities portfolio growth and lower excess cash was partially offset by the impact of higher funding costs.

Noninterest income
Noninterest income of $213 million increased $12 million and included a $19 million increase in the benefit of notable items. Adjusted noninterest income of $181 million decreased $7 million as higher deferred compensation income and other noninterest income was more than offset by reductions in mortgage banking, title and fixed income. Fixed income average daily revenue of $524 thousand compared with $612 thousand in second quarter 2022 reflecting the impact of higher long-term rates, macro economic uncertainty and market volatility.

Noninterest expense
Noninterest expense of $468 million decreased $21 million and included a $25 million decrease in notable items. Adjusted noninterest expense of $444 million increased $6 million largely as a $16 million increase in deferred compensation expense was partially offset by a reduction in salaries and employee benefits and other noninterest expense. Linked quarter trends also reflect a $11 million benefit tied to incremental IBKC merger cost savings.

Loans and leases
Average loan and lease balances of $56.5 billion increased $1.0 billion reflecting a 1% increase in commercial and a 4% increase in consumer. Commercial loan growth reflected a $300 million increase in commercial real estate and a $157 million increase in commercial and industrial. Consumer loan growth driven by a $513 million increase in consumer real estate. Results reflect a $574 million reduction in loans to mortgage companies ("LMC") and a $274 million decrease in PPP loans. Loan trends excluding PPP increased $1.2 billion compared to the prior quarter, driven by a $0.7 billion increase in commercial. Period-end loans and leases of $57.4 billion increased $0.8 billion from second quarter 2022, reflecting a 1% increase in commercial and a 3% increase in consumer. Before the impact of PPP and LMC, period-end loans increased $1.8 billion, or 3%, driven by a $1.4 billion increase in all other commercial loans.

Deposits
Average deposits of $68.1 billion decreased $3.8 billion, or 5%. Period-end deposits of $66.0 billion decreased $4.5 billion reflecting a $3.2 billion decrease in interest-bearing and a $1.3 billion decrease in noninterest-bearing. Total deposit costs of 25 basis points increased 15 basis points with a 25 basis point increase in interest-bearing deposit costs.

Asset quality
Provision expense of $60 million compared with a $30 million in second quarter 2022 reflecting the impact of loan growth, revised macroeconomic outlook and a preliminary estimate of potential losses related to Hurricane Ian.

Net charge-offs of $12 million, or 8 basis points, remained relatively stable with second quarter 2022 levels.

Nonperforming loans of $292 million decreased $9 million. Third quarter 2022 ACL to nonperforming loans coverage ratio of 258% compared with 234% in second quarter 2022.

The ACL to loans ratio increased to 1.31% from 1.24% in the second quarter 2022.



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Capital
CET1 ratio of 9.9% in third quarter 2022 compared with 9.8% in second quarter 2022. Total capital ratio of 13.1% vs. 13.0% in second quarter 2022.

Income taxes
The third quarter 2022 effective tax rate of 22.6% compares with 21.3% in second quarter 2022. On an adjusted basis, the effective tax rate of 22.4% in the third quarter 2022 improved from 21.7% in second quarter 2022.

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, core net interest income ("NII"), pre-provision net revenue ("PPNR"), loans and leases excluding paycheck protection program ('PPP") and/or 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
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equity and instruments that cannot be redeemed at the option of the holder) adjusted for certain items under risk based capital regulations; and risk-weighted assets, which is a measure of total on- and off-balance sheet assets adjusted for credit and market risk, used to determine regulatory capital ratios.

Refer to the tabular reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items beginning on page 22.

First Horizon Corp. (NYSE: FHN), with $80.3 billion in assets as of September 30, 2022, 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 - investorrelations@firsthorizon.com
Media Relations - Beth.Ardoin@firsthorizon.com
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CONSOLIDATED INCOME STATEMENT
Quarterly, Unaudited
     3Q22 Change vs.
($s in millions, except per share data)3Q222Q221Q224Q213Q212Q223Q21
$ %$ %
Interest income - taxable equivalent1
$737 $586 $513 $534 $536 $151 26 %$201 38 %
Interest expense- taxable equivalent1
71 41 31 33 41 30 73 30 73 
Net interest income- taxable equivalent666 545 482 502 495 121 22 171 35 
Less: Taxable-equivalent adjustment4 3 3 3 3 1 33 1 33 
Net interest income662 542 479 498 492 120 22 170 35 
Noninterest income:
Fixed income46 51 73 82 96 (5)(10)(50)(52)
Mortgage banking and title9 34 22 28 34 (25)(74)(25)(74)
Brokerage, trust, and insurance34 36 37 36 37 (2)(6)(3)(8)
Service charges and fees56 57 57 56 56 (1)(2)— — 
Card and digital banking fees21 23 20 19 21 (2)(9)— — 
Deferred compensation income(3)(17)(4)— 3 14 82 (6)NM
Other noninterest income50 16 24 25 (1)34 NM 51 NM
Total noninterest income213 201 229 247 247 12 6 (34)(14)
Total revenue875 743 707 745 738 132 18 137 19 
Noninterest expense:
Personnel expense:
Salaries and benefits186 190 190 190 191 (4)(2)(5)(3)
Incentives and commissions92 93 94 93 101 (1)(1)(9)(9)
Deferred compensation expense(2)(18)(5)7 4 16 89 (6)NM
Total personnel expense275 265 280 290 296 10 4 (21)(7)
Occupancy and equipment2
71 73 72 74 75 (2)(3)(4)(5)
Outside services66 70 84 81 89 (4)(6)(23)(26)
Amortization of intangible assets13 13 13 14 14 — — (1)(7)
Other noninterest expense44 68 44 70 52 (24)(35)(8)(15)
Total noninterest expense468 489 493 528 526 (21)(4)(58)(11)
Pre-provision net revenue3
406 255 215 217 213 151 59 193 91 
Provision for credit losses60 30 (40)(65)(85)30 100 145 NM
Income before income taxes346 225 255 282 298 121 54 48 16 
Provision for income taxes78 48 57 53 63 30 63 15 24 
Net income268 177 198 229 235 91 51 33 14 
Net income attributable to noncontrolling interest3 3 3 3 3 — — — — 
Net income attributable to controlling interest265 174 195 227 232 91 52 33 14 
Preferred stock dividends8 8 8 8 8 — — — — 
Net income available to common shareholders$257 $166 $187 $219 $224 $91 55 %$33 15 %
Common Share Data
EPS$0.48 $0.31 $0.35 $0.41 $0.41 $0.17 55 %$0.07 17 %
Basic shares536 535 533 537 546 1 — (10)(2)
Diluted EPS$0.45 $0.29 $0.34 $0.40 $0.41 $0.16 54 $0.04 10 
Diluted shares8
570 569 550 542 550 1 — %20 4 %
Effective tax rate22.6 %21.3 %22.4 %18.6 %21.1 %
Numbers may not foot due to rounding. See footnote disclosures on page 21.
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ADJUSTED5 FINANCIAL DATA - SEE NOTABLE ITEMS ON PAGE 10
Quarterly, Unaudited
     3Q22 Change vs.
($s in millions, except per share data)3Q222Q221Q224Q213Q212Q223Q21
$%$%
Net interest income (FTE)1
$666 $545 $482 $502 $495 $121 22 %$171 35 %
Adjusted noninterest income:
Fixed income46 51 73 82 96 (5)(10)(50)(52)
Mortgage banking and title9 22 22 28 34 (13)(59)(25)(74)
Brokerage, trust, and insurance34 36 37 36 37 (2)(6)(3)(8)
Service charges and fees56 57 57 56 56 (1)(2)— — 
Card and digital banking fees21 23 20 19 21 (2)(9)— — 
Deferred compensation income(3)(17)(4)— 3 14 82 (6)NM
Adjusted other noninterest income18 15 18 25 21 3 20 (3)(14)
Adjusted total noninterest income$181 $188 $223 $246 $268 $(7)(4)%$(87)(32)%
Total revenue (FTE)1
$846 $733 $704 $748 $763 $113 15 %$83 11 %
Adjusted noninterest expense:
Adjusted personnel expense:
Adjusted salaries and benefits$185 $190 $188 $189 $191 $(5)(3)%$(6)(3)%
Adjusted Incentives and commissions68 71 92 84 92 (3)(4)(24)(26)
Deferred compensation expense(2)(18)(5)1 4 16 89 (6)NM
Adjusted total personnel expense251 244 275 274 286 7 3 (35)(12)
Adjusted occupancy and equipment2
70 72 72 73 74 (2)(3)(4)(5)
Adjusted outside services64 61 59 66 65 3 5 (1)(2)
Adjusted amortization of intangible assets12 12 12 13 13 — — (1)(8)
Adjusted other noninterest expense48 50 37 46 42 (2)(4)6 14 
Adjusted total noninterest expense$444 $438 $455 $474 $480 $6 1 %$(36)(8)%
Adjusted pre-provision net revenue3
$403 $295 $249 $274 $284 $108 37 %$119 42 %
Adjusted provision for credit losses$60 $30 $(40)$(65)$(85)$30 100 %$145 NM
Adjusted net income available to common shareholders$252 $195 $211 $260 $275 $57 29 %$(23)(8)%
Adjusted Common Share Data
Adjusted diluted EPS$0.44 $0.34 $0.38 $0.48 $0.50 $0.10 29 %$(0.06)(12)%
Diluted shares8
570 569 550 542 550 1 — %20 4 %
Adjusted effective tax rate22.4 %21.7 %22.5 %19.5 %21.8 %
Adjusted ROTCE17.9 %14.2 %14.7 %17.5 %18.4 %
Adjusted efficiency ratio52.4 %59.8 %64.6 %63.3 %62.9 %
Numbers may not foot due to rounding.
See footnote disclosures on page 21.

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NOTABLE ITEMS
Quarterly, Unaudited
(In millions)3Q222Q221Q224Q213Q21
Summary of Notable Items:
Gain/(loss) on TRUPS redemption (other noninterest income)$— $— $— $(3)$(23)
IBKC Branch sale gain (other noninterest income)— — — 4 2 
Gain on sale of title services business21 — — — — 
Gain related to equity securities investment10 — — — — 
Gain related to a fintech investment — — 6 — — 
Gain on sale of mortgage servicing rights— 12 — — — 
IBKC merger/acquisition expense(3)(13)(28)(38)(46)
TD transaction-related expense (21)(25)(9)— — 
Other notable expenses*— (12)— (16)— 
Total notable items$7 $(38)$(32)$(54)$(68)
EPS impact of notable items$0.01 $(0.05)$(0.04)$(0.08)$(0.09)
Numbers may not foot due to rounding
*2Q22 includes $12 million of Visa derivative valuation expense; 4Q21 includes $10 million of Visa derivative valuation expense and $6 million of deferred compensation expense.



IMPACT OF NOTABLE ITEMS:
Quarterly, Unaudited
     
(In millions)3Q222Q221Q224Q213Q21
Impacts of Notable Items:
Noninterest income:
Mortgage banking and title$— $(12)$— $— $— 
Other noninterest income(32)— (6)— 22 
Total noninterest income$(32)$(13)$(6)$— $22 
Noninterest expense:
Personnel expenses:
Salaries and benefits$— $1 $(2)$— $— 
Incentives and commissions(24)(22)(2)(9)(10)
Deferred compensation expense— — — (6)— 
Total personnel expenses(25)(21)(4)(16)(10)
Occupancy and equipment2
(1)(1)— — (1)
Outside services(2)(9)(25)(15)(24)
Amortization of intangible assets(1)(1)(1)(1)(1)
Other noninterest expense4 (18)(7)(23)(10)
Total noninterest expense$(25)$(50)$(37)$(54)$(46)
Income before income taxes$(7)$38 $32 $54 $68 
Provision for income taxes(2)9 7 13 17 
Net income/(loss) available to common shareholders$(5)$29 $24 $41 $51 
Numbers may not foot due to rounding

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FINANCIAL RATIOS
Quarterly, Unaudited
     3Q22 Change vs.
3Q222Q221Q224Q213Q212Q223Q21
FINANCIAL RATIOS$/bp%$/bp%
Net interest margin3.49 %2.74 %2.37 %2.42 %2.41 %75 bp108 bp
Return on average assets1.29 %0.82 %0.90 %1.02 %1.05 %47 24 
Adjusted return on average assets4
1.27 %0.95 %1.02 %1.21 %1.28 %32 (1)
Return on average common equity (“ROCE”)13.85 %9.12 %9.92 %11.26 %11.43 %473 242 
Return on average tangible common equity (“ROTCE”)4
18.23 %12.07 %12.98 %14.72 %14.95 %616 328 
Adjusted ROTCE4
17.89 %14.15 %14.68 %17.51 %18.36 %374 (47)
Noninterest income as a % of total revenue24.30 %27.06 %32.31 %33.10 %33.39 %(276)(909)
Adjusted noninterest income as a % of total revenue4
21.37 %25.68 %31.63 %32.95 %35.14 %(431)(1,377)
Efficiency ratio53.56 %65.76 %69.66 %70.88 %71.21 %(1,220)(1,765)
Adjusted efficiency ratio4
52.42 %59.79 %64.64 %63.31 %62.87 %(737)(1,045)
CAPITAL DATA
CET1 capital ratio*
9.9 %9.8 %10.0 %9.9 %10.1 %12 bp(16)bp
Tier 1 capital ratio*11.7 %11.6 %11.8 %11.0 %11.2 %8 bp46 bp
Total capital ratio*13.1 %13.0 %13.2 %12.3 %12.6 %13 bp45 bp
Tier 1 leverage ratio*9.8 %9.1 %8.8 %8.1 %8.1 %67 bp165 bp
Risk-weighted assets (“RWA”) (billions)$68.7 $67.3 $65.0 $64.2 $63.0 $1 2 %$6 9 %
Total equity to total assets 10.32 %10.04 %9.81 %9.53 %9.64 %28 bp68 bp
Tangible common equity/tangible assets (“TCE/TA”)4
6.64 %6.55 %6.44 %6.73 %6.80 %9 bp(16)bp
Period-end shares outstanding (millions)537 536 535 534 542 1 — %(5)(1)%
Cash dividends declared per common share$0.15 $0.15 $0.15 $0.15 $0.15 $— — %$— — %
Book value per common share$12.99 $13.50 $13.82 $14.39 $14.24 $(0.51)(4)%$(1.25)(9)%
Tangible book value per common share4
$9.72 $10.18 $10.46 $11.00 $10.88 $(0.46)(5)%$(1.16)(11)%
SELECTED BALANCE SHEET DATA
Loans-to-deposit ratio (period-end balances)86.88 %80.13 %74.23 %73.25 %74.65 %675 bp1,223 bp
Loans-to-deposit ratio (average balances)82.99 %77.25 %72.93 %73.29 %75.28 %574 bp771 bp
Full-time equivalent associates7,569 7,627 7,900 7,863 7,982 (58)(1)%(413)(5)%
Certain previously reported amounts have been reclassified to agree with current presentation.
*Current quarter is an estimate.
See footnote disclosures on page 21.
11

CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited 
     3Q22 Change vs.
(In millions)3Q222Q221Q224Q213Q212Q223Q21
$%$%
Assets:      
Loans and leases:
Commercial, financial, and industrial (C&I)$31,620 $31,276 $30,798 $31,068 $31,516 $344 1 %$104 — %
Commercial real estate13,021 12,942 12,487 12,109 12,194 79 1 827 7 
Total Commercial44,641 44,218 43,285 43,177 43,710 423 1 931 2 
Consumer real estate11,864 11,441 10,874 10,772 10,787 423 4 1,077 10 
Credit card and other5
849 870 854 910 938 (21)(2)(89)(10)
Total Consumer12,712 12,311 11,727 11,682 11,725 402 3 987 8 
Loans and leases, net of unearned income57,354 56,529 55,012 54,859 55,435 825 1 1,919 3 
Loans held for sale680 870 1,014 1,172 1,052 (190)(22)(372)(35)
Investment securities10,103 9,628 9,943 9,419 8,798 475 5 1,305 15 
Trading securities1,421 1,392 1,823 1,601 1,319 29 2 102 8 
Interest-bearing deposits with banks3,241 9,475 13,548 14,907 14,829 (6,234)(66)(11,587)(78)
Federal funds sold and securities purchased under agreements to resell690 712 640 641 361 (22)(3)329 91 
Total interest earning assets73,489 78,606 81,980 82,600 81,794 (5,117)(7)(8,305)(10)
Cash and due from banks1,193 1,133 1,225 1,147 1,197 60 5 (4)— 
Goodwill and other intangible assets, net1,757 1,782 1,795 1,808 1,822 (26)(1)(65)(4)
Premises and equipment, net622 636 669 665 692 (15)(2)(70)(10)
Allowance for loan and lease losses(664)(624)(622)(670)(734)(40)(6)70 9 
Other assets3,903 3,598 3,614 3,542 3,766 304 8 137 4 
Total assets$80,299 $85,132 $88,660 $89,092 $88,537 $(4,833)(6)%$(8,239)(9)%
Liabilities and Shareholders' Equity:
Deposits:
Savings$22,800 $24,376 $25,772 $26,457 $27,425 $(1,576)(6)%$(4,625)(17)%
Time deposits2,671 2,888 3,165 3,500 3,920 (217)(7)(1,249)(32)
Other interest-bearing deposits14,730 16,172 17,126 17,054 15,571 (1,442)(9)(840)(5)
Total interest-bearing deposits40,202 43,436 46,063 47,012 46,916 (3,234)(7)(6,715)(14)
Trading liabilities383 394 513 426 315 (11)(3)69 22 
Short-term borrowings1,416 1,953 1,719 2,124 2,225 (537)(27)(809)(36)
Term borrowings1,597 1,599 1,591 1,590 1,584 (3)— 13 1 
Total interest-bearing liabilities43,598 47,382 49,885 51,151 51,040 (3,784)(8)(7,442)(15)
Noninterest-bearing deposits25,813 27,114 28,052 27,883 27,348 (1,301)(5)(1,536)(6)
Other liabilities2,605 2,085 2,027 1,564 1,617 520 25 988 61 
Total liabilities72,016 76,581 79,964 80,598 80,005 (4,566)(6)(7,989)(10)
Shareholders' Equity:
Preferred stock1,014 1,014 1,014 520 520 — — 494 95 
Common stock335 335 334 333 339 — — (3)(1)
Capital surplus4,812 4,791 4,769 4,742 4,866 22 — (54)(1)
Retained earnings3,254 3,079 2,996 2,891 2,754 175 6 500 18 
Accumulated other comprehensive loss, net(1,427)(963)(711)(288)(241)(464)(48)(1,187)NM
Combined shareholders' equity7,987 8,255 8,400 8,199 8,237 (268)(3)(250)(3)
Noncontrolling interest295 295 295 295 295 — — — — 
Total shareholders' equity8,283 8,551 8,696 8,494 8,533 (268)(3)(250)(3)
Total liabilities and shareholders' equity$80,299 $85,132 $88,660 $89,092 $88,537 $(4,833)(6)%$(8,239)(9)%
Memo:
Total Deposits$66,014 $70,550 $74,114 $74,895 $74,265 $(4,535)(6)%$(8,250)(11)%
Unfunded Loan Commitments:
Commercial$23,706 $23,251 $21,813 $20,487 $19,019 $455 2 %$4,687 25 %
Consumer$4,248 $3,972 $3,882 $3,936 $3,892 $276 7 %$356 9 %
Numbers may not foot due to rounding. See footnote disclosures on page 21.
12

CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited 
     3Q22 Change vs.
(In millions)3Q222Q221Q224Q213Q212Q223Q21
$%$%
Assets:      
Loans and leases:      
Commercial, financial, and industrial (C&I)$31,120 $30,963 $30,215 $30,780 $31,477 $157 1 %$(357)(1)%
Commercial real estate12,926 12,626 12,229 12,220 12,264 300 2 662 5 
Total Commercial44,046 43,589 42,445 43,001 43,741 457 1 305 1 
Consumer real estate11,633 11,120 10,769 10,738 10,819 513 5 814 8 
Credit card and other5
864 867 869 943 948 (3)— (84)(9)
Total Consumer12,496 11,987 11,638 11,681 11,767 509 4 729 6 
Loans and leases, net of unearned income56,543 55,576 54,082 54,682 55,508 967 2 1,035 2 
Loans held-for-sale761 1,027 1,156 1,252 992 (266)(26)(231)(23)
Investment securities10,315 9,781 9,668 9,269 8,494 533 5 1,820 21 
Trading securities1,342 1,509 1,594 1,552 1,171 (167)(11)171 15 
Interest-bearing deposits with banks6,341 10,989 14,902 15,065 15,022 (4,648)(42)(8,681)(58)
Federal funds sold and securities purchased under agreements to resell661 857 753 650 587 (196)(23)74 13 
Total interest earning assets75,963 79,739 82,155 82,469 81,775 (3,776)(5)(5,812)(7)
Cash and due from banks1,246 1,281 1,226 1,263 1,263 (36)(3)(17)(1)
Goodwill and other intangibles assets, net1,767 1,789 1,802 1,815 1,829 (21)(1)(62)(3)
Premises and equipment, net629 645 655 676 703 (16)(3)(74)(11)
Allowances for loan and lease losses(639)(621)(658)(714)(793)(18)(3)154 19 
Other assets3,585 3,493 3,407 3,515 3,624 92 3 (39)(1)
Total assets$82,551 $86,326 $88,587 $89,025 $88,401 $(3,775)(4)%$(5,850)(7)%
Liabilities and shareholders' equity:
Deposits:
Savings$23,569 $24,841 $26,330 $26,731 $27,793 $(1,272)(5)%$(4,224)(15)%
Time deposits2,759 3,040 3,343 3,695 4,121 (281)(9)(1,362)(33)
Other interest-bearing deposits15,102 16,273 16,558 15,900 15,333 (1,171)(7)(231)(2)
Total interest-bearing deposits41,431 44,154 46,230 46,326 47,248 (2,723)(6)(5,816)(12)
Trading liabilities372 585 614 556 527 (213)(36)(155)(29)
Short-term borrowings1,711 1,710 1,995 2,249 2,452 1 — (741)(30)
Term borrowings1,598 1,597 1,591 1,575 1,665 1 — (67)(4)
Total interest-bearing liabilities45,112 48,046 50,430 50,707 51,892 (2,934)(6)(6,779)(13)
Noninterest-bearing deposits26,701 27,791 27,926 28,282 26,485 (1,089)(4)216 1 
Other liabilities2,068 1,875 1,613 1,511 1,447 193 10 621 43 
Total liabilities73,882 77,712 79,969 80,499 79,824 (3,830)(5)(5,942)(7)
Shareholders' Equity:
Preferred stock1,014 1,014 695 520 520 — — 494 95 
Common stock 335 335 334 336 342 1 — (6)(2)
Capital surplus4,802 4,778 4,753 4,811 4,936 24 1 (134)(3)
Retained earnings3,175 3,051 2,938 2,819 2,673 124 4 502 19 
Accumulated other comprehensive loss, net(953)(859)(398)(256)(190)(94)(11)(763)NM
Combined shareholders' equity8,373 8,318 8,323 8,230 8,281 55 1 92 1 
Noncontrolling interest295 295 295 295 295 — — — — 
Total shareholders' equity8,669 8,614 8,619 8,526 8,577 55 1 92 1 
Total liabilities and shareholders' equity$82,551 $86,326 $88,587 $89,025 $88,401 $(3,775)(4)%$(5,850)(7)%
Memo:
Total Deposits$68,133 $71,945 $74,156 $74,608 $73,733 $(3,813)(5)%$(5,600)(8)%
Numbers may not foot due to rounding. See footnote disclosures on page 21.
13

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCE SHEET: YIELDS AND RATES
Quarterly, Unaudited 
   3Q22 Change vs.
3Q222Q221Q224Q213Q212Q223Q21
(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$496 4.47 %$382 3.52 %$339 3.24 %$365 3.37 %$372 3.37 %$114 30 %$124 33 %
Consumer124 3.94 112 3.74 108 3.71 110 3.77 112 3.83 12 11 12 11 
Loans and leases, net of unearned income619 4.35 494 3.57 447 3.34 475 3.45 484 3.47 125 25 135 28 
Loans held-for-sale9 4.91 10 3.89 10 3.51 11 3.49 8 3.25 (1)(10)1 12 
Investment securities55 2.14 46 1.87 38 1.59 33 1.43 31 1.48 9 20 24 78 
Trading securities15 4.55 13 3.43 11 2.75 10 2.50 6 2.07 2 15 9 147 
Interest-bearing deposits with banks34 2.15 22 0.79 7 0.19 6 0.15 6 0.16 12 55 28 NM
Federal funds sold and securities purchased under agreements2 2.04 1 0.66 — (0.04)— (0.09)— (0.03)1 100 2 NM
Interest income$737 3.86 %$586 2.95 %$513 2.52 %$534 2.58 %$536 2.61 %$151 26 %$201 38 %
Interest bearing liabilities/Interest expense:
Interest-bearing deposits:
Savings$18 0.31 %$5 0.08 %$3 0.05 %$4 0.06 %$9 0.12 %$13 NM $9 110 %
Time deposits2 0.50 4 0.50 4 0.51 5 0.56 6 0.62 (2)(50)(4)(69)
Other interest-bearing deposits21 0.56 9 0.22 4 0.09 4 0.10 5 0.12 12 133 16 NM
Total interest-bearing deposits42 0.41 18 0.16 11 0.10 13 0.11 20 0.17 24 133 22 113 
Trading liabilities3 3.03 4 2.52 3 1.69 2 1.38 1 1.11 (1)(25)2 103 
Short-term borrowings7 2.22 2 0.58 1 0.15 1 0.18 1 0.24 5 NM 6 NM
Term borrowings18 4.57 17 4.38 17 4.29 17 4.30 18 4.39 1 6 — (2)
Interest expense71 0.63 41 0.34 31 0.25 33 0.26 41 0.31 30 73 30 73 
Net interest income - tax equivalent basis666 3.23 545 2.61 482 2.27 502 2.32 495 2.30 121 22 171 35 
Fully taxable equivalent adjustment(4)0.26 (3)0.13 (3)0.10 (3)0.10 (3)0.11 (1)(33)(1)(36)
Net interest income$662 3.49 %$542 2.74 %$479 2.37 %$498 2.42 %$492 2.41 %$120 22 %$170 35 %
Memo:
Total loan yield4.35 %3.57 %3.34 %3.45 %3.47 %
Total deposit cost0.25 %0.10 %0.06 %0.07 %0.11 %
Total funding cost0.39 %0.22 %0.16 %0.16 %0.21 %
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 21.
14

CONSOLIDATED NONPERFORMING LOANS AND LEASES ("NPL")
Quarterly, Unaudited 
As of 3Q22 change vs.
(In millions, except ratio data)3Q222Q221Q224Q213Q212Q223Q21
$%$%
Nonperforming loans and leases
Commercial, financial, and industrial (C&I)$116 $129 $153 $125 $144 $(12)(10)%$(27)(19)%
Commercial real estate10 11 12 9 58 — (2)(48)(82)
Consumer real estate163 159 165 138 143 4 2 19 14 
Credit card and other3 3 3 3 2 — 3 1 28 
Total nonperforming loans and leases$292 $301 $332 $275 $347 $(9)(3)%$(55)(16)%
Asset Quality Ratio
Nonperforming loans and leases to loans and leases
Commercial, financial, and industrial (C&I)0.37 %0.41 %0.50 %0.40 %0.46 %
Commercial real estate0.08 0.08 0.09 0.08 0.48 
Consumer real estate1.37 1.39 1.52 1.29 1.33 
Credit card and other0.31 0.29 0.32 0.31 0.22 
Total nonperforming loans and leases to loans and leases0.51 %0.53 %0.60 %0.50 %0.63 %
Numbers may not foot due to rounding.



CONSOLIDATED LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING
Quarterly, Unaudited
As of3Q22 change vs.
(In millions)3Q222Q221Q224Q213Q212Q223Q21
$%$%
Loans and leases 90 days or more past due and accruing
Commercial, financial, and industrial (C&I)$1 $1 $6 $5 $1 $1 143 %$— 22 %
Commercial real estate— — — — 2 — (100)(2)(100)
Consumer real estate17 14 14 33 12 3 20 5 40 
Credit card and other6 3 3 2 2 3 102 4 NM
Total loans and leases 90 days or more past due and accruing$24 $17 $23 $40 $16 $6 36 %$7 46 %
Numbers may not foot due to rounding.
15


CONSOLIDATED NET CHARGE-OFFS (RECOVERIES)
Quarterly, Unaudited
As of3Q22 change vs.
(In millions, except ratio data)3Q222Q221Q224Q213Q212Q223Q21
Charge-off, Recoveries and Related Ratios$%$%
Gross Charge-offs
Commercial, financial, and industrial (C&I)$13 $12 $13 $5 $12 $1 5 %$1 11 %
Commercial real estate1 — — — 2 — NM (2)(78)
Consumer real estate1 2 1 2 1 (1)(57)— 32 
Credit card and other7 7 5 4 5 — 1 2 46 
Total gross charge-offs$21 $21 $19 $11 $19 $— (1)%$2 9 %
Gross Recoveries
Commercial, financial, and industrial (C&I)$(2)$(1)$(3)$(3)$(7)$(1)(59)%$5 73 %
Commercial real estate— (1)— — (2)1 91 2 96 
Consumer real estate(6)(6)(5)(5)(7)— (9)1 18 
Credit card and other(1)(1)(1)(1)— — (8)(1)NM
Total gross recoveries$(9)$(9)$(9)$(10)$(16)$— (5)%$7 43 %
Net Charge-offs (Recoveries)
Commercial, financial, and industrial (C&I)$11 $11 $10 $1 $5 $— (1)%$6 128 %
Commercial real estate— (1)— — — 1 NM — 37 
Consumer real estate(5)(3)(4)(3)(7)(2)(54)2 24 
Credit card and other5 5 4 3 4 — (1)1 21 
Total net charge-offs$12 $12 $10 $1 $3 $(1)(5)%$9 NM
Annualized Net Charge-off (Recovery) Rates
Commercial, financial, and industrial (C&I)0.14 %0.14 %0.13 %0.01 %0.06 %
Commercial real estate0.01 (0.03)(0.01)(0.01)0.01 
Consumer real estate(0.17)(0.12)(0.15)(0.10)(0.24)
Credit card and other2.46 2.49 1.85 1.26 1.86 
Total loans and leases0.08 %0.09 %0.07 %0.01 %0.02 %
Numbers may not foot due to rounding.
16


CONSOLIDATED ALLOWANCE FOR LOAN AND LEASE LOSSES AND RESERVE FOR UNFUNDED COMMITMENTS
Quarterly, Unaudited
As of3Q22 Change vs.
(In millions)3Q222Q221Q224Q213Q212Q223Q21
Summary of Changes in the Components of the Allowance For Credit Losses$%$%
Allowance for loan and lease losses - beginning$624 $622 $670 $734 $815 $2 — %$(191)(23)%
Charge-offs:
Commercial, financial, and industrial (C&I)(13)(12)(13)(5)(12)(1)(5)(1)(11)
Commercial real estate(1)— — — (2)— NM 2 78 
Consumer real estate(1)(2)(1)(2)(1)1 57 — (32)
Credit card and other(7)(7)(5)(4)(5)— (1)(2)(46)
Total charge-offs(21)(21)(19)(11)(19)— 1 (2)(9)
Recoveries:
Commercial, financial, and industrial (C&I)2 1 3 3 7 1 59 (5)(73)
Commercial real estate— 1 — — 2 (1)(91)(2)(96)
Consumer real estate6 6 5 5 7 — 9 (1)(18)
Credit card and other1 1 1 1 — — 8 1 NM
Total Recoveries9 9 9 10 16 — 5 (7)(43)
Provision for loan and lease losses:
Commercial, financial, and industrial (C&I)32 (2)(36)(40)(5)34 NM 37 NM
Commercial real estate8 (12)(3)(9)(48)19 NM 56 116 
Consumer real estate5 16 (3)(18)(31)(11)(68)36 117 
Credit card and other7 12 4 3 6 (4)(38)1 15 
Total provision for loan and lease losses:
52 14 (38)(63)(78)38 NM 130 NM
Allowance for loan and lease losses - ending$664 $624 $622 $670 $734 $40 6 %$(70)(9)%
Reserve for unfunded commitments - beginning$80 $64 $66 $68 $75 $16 25 %$5 7 %
Cumulative effect of change in accounting principle— — — — — — NM — NM
Acquired reserve for unfunded commitments— — — — — — NM — NM
Provision for unfunded commitments8 16 (2)(2)(7)(8)(50)15 NM
Reserve for unfunded commitments - ending$88 $80 $64 $66 $68 $8 10 %$20 29 %
Total allowance for credit losses- ending$752 $704 $686 $736 $802 $48 7 %$(50)(6)%
Numbers may not foot due to rounding.
17


CONSOLIDATED ASSET QUALITY RATIOS - ALLOWANCE FOR LOAN AND LEASE LOSSES
Quarterly, Unaudited
As of
3Q222Q221Q224Q213Q21
Allowance for loans and lease losses to loans and leases
Commercial, financial, and industrial (C&I)0.93 %0.88 %0.93 %1.07 %1.19 %
Commercial real estate1.14 %1.09 %1.21 %1.27 %1.33 %
Consumer real estate1.63 %1.60 %1.51 %1.51 %1.65 %
Credit card and other3.32 %3.01 %2.31 %2.14 %2.03 %
Total allowance for loans and lease losses to loans and leases1.16 %1.10 %1.13 %1.22 %1.32 %
Allowance for loans and lease losses to nonperforming loans and leases
Commercial, financial, and industrial (C&I)253 %213 %188 %268 %261 %
Commercial real estate1,422 %1,331 %1,303 %1,671 %278 %
Consumer real estate119 %115 %99 %118 %125 %
Credit card and other1,070 %1,021 %730 %699 %926 %
Total allowance for loans and lease losses to nonperforming loans and leases228 %207 %187 %244 %211 %
18

REGIONAL BANKING
Quarterly, Unaudited 
     3Q22 Change vs.
 3Q222Q221Q224Q213Q212Q223Q21
$/bp%$/bp%
Income Statement (millions)      
Net interest income$517 $465 $428 $449 $444 $52 11 %$73 16 %
Noninterest income110 114 114 115 113 (4)(4)(3)(3)
Total revenue627 579 541 564 557 48 8 70 13 
Noninterest expense304 301 306 300 292 3 1 12 4 
Pre-provision net revenue3
323 277 235 263 265 46 17 58 22 
Provision for credit losses43 52 (30)(60)(52)(9)(17)95 NM
Income before income tax expense281 226 266 323 317 55 24 (36)(11)
Income tax expense66 53 63 76 74 13 25 (8)(11)
Net income$215 $173 $203 $248 $243 $42 24 %$(28)(12)%
Average Balances (billions)
Total loans and leases$40.1 $39.2 $38.0 $37.7 $38.5 $0.9 2 %$1.6 4 %
Interest-earning assets40.1 39.2 38.0 37.8 38.5 0.9 2 1.6 4 
Total assets42.8 42.0 40.5 40.0 40.9 0.8 2 1.9 5 
Total deposits62.0 64.6 66.6 66.7 65.6 (2.6)(4)(3.6)(5)
Key Metrics
Net interest margin6
5.15 %4.78 %4.58 %4.75 %4.60 %37 bp55 bp
Efficiency ratio 48.47 %52.05 %56.51 %53.25 %52.41 %(358)bp(394)bp
Loans-to-deposits ratio (period-end balances)66.79 %62.79 %57.47 %57.27 %59.82 %400 bp697 bp
Loans-to-deposits ratio (average-end balances)64.70 %60.71 %56.97 %58.78 %61.48 %399 bp322 bp
Return on average assets (annualized)1.99 %1.65 %2.03 %2.45 %2.36 %34 bp(37)bp
Return on allocated equity7
23.93 %19.63 %23.54 %27.95 %26.85 %430 bp(292)bp
Financial center locations417 417 417 427 438 — — %(21)(5)%
Numbers may not add to total due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 21.

Regional Banking segment: Offers financial products and services, including traditional lending and deposit taking, to consumer and commercial customers primarily in the southern and southeastern U.S. and other selected markets. Regional Banking also provides investment, wealth management, financial planning, trust and asset management services for consumer customers.
19


SPECIALTY BANKING
Quarterly, Unaudited 
     3Q22 Change vs.
 3Q222Q221Q224Q213Q212Q223Q21
$/bp%$/bp%
Income Statement (millions)      
Net interest income$138 $141 $144 $154 $154 $(3)(2)%$(16)(10)%
Noninterest income64 96 105 120 142 (32)(33)(78)(55)
Total revenue202 237 250 274 295 (35)(15)(93)(32)
Noninterest expense104 113 132 128 138 (9)(8)(34)(25)
Pre-provision net revenue3
98 124 118 146 157 (26)(21)(59)(38)
Provision for credit losses17 (18)(2)(3)(33)35 NM 50 NM
Income before income tax expense81 143 121 149 190 (62)(43)(109)(57)
Income tax expense20 35 29 36 46 (15)(43)(26)(57)
Net income$61 $108 $91 $113 $144 $(47)(44)%$(83)(58)%
Average Balances (billions)
Total loans and leases$15.9 $15.8 $15.5 $16.3 $16.3 $0.1 1 %$(0.4)(3)%
Interest-earning assets18.6 19.1 19.0 19.8 19.2 (0.5)(3)(0.6)(3)
Total assets19.7 20.2 20.2 21.0 20.5 (0.5)(2)(0.8)(4)
Total deposits5.2 6.3 6.5 6.7 6.2 (1.1)(18)(1.0)(16)
Key Metrics
Fixed income product average daily revenue (thousands)$524 $612 $987 $1,123 $1,323 $(88)(14)%$(799)(60)%
Net interest margin6
2.96 %2.97 %3.07 %3.10 %3.18 %(1)bp(22)bp
Efficiency ratio 51.39 %47.60 %52.74 %46.74 %46.83 %379 bp456 bp
Loans-to-deposits ratio (period-end balances)378 %268 %256 %274 %308 %10,977 bp6,988 bp
Loans-to-deposits ratio (average-end balances)307 %250 %239 %266 %293 %5,707 bp1,449 bp
Return on average assets (annualized)1.23 %2.14 %1.83 %2.14 %2.79 %(91)bp(156)bp
Return on allocated equity7
14.95 %26.13 %22.84 %25.31 %31.41 %(1,118)bp(1,646)bp
Numbers may not add to total due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 21.

Specialty Banking segment: Consists of lines of business that deliver product offerings and services with specialized industry knowledge. Specialty Banking’s lines of business include asset-based lending, mortgage warehouse lending, commercial real estate, franchise finance, correspondent banking, equipment finance, mortgage, and title insurance. In addition to traditional lending and deposit taking, Specialty Banking also delivers treasury management solutions, loan syndications, 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.
20

CORPORATE
Quarterly, Unaudited
 3Q22 Change vs.
 3Q222Q221Q224Q213Q212Q223Q21
$%$%
Income Statement (millions)
Net interest income/(expense)$7 $(64)$(93)$(104)$(106)$71 111 %$113 107 %
Noninterest income39 (8)9 11 (8)47 NM 47 NM
Total revenues45 (73)(84)(93)(114)118 NM 159 139 
Noninterest expense61 75 55 100 95 (14)(19)(34)(36)
Pre-provision net revenue3
(15)(147)(139)(193)(210)132 90 195 93 
Provision for credit losses— (4)(7)(2)— 4 100 — NM
Income before income tax expense(15)(144)(132)(191)(210)129 90 195 93 
Income tax expense (benefit)(7)(40)(35)(59)(57)33 83 50 88 
Net income/(loss)$(8)$(104)$(97)$(132)$(152)$96 92 %$144 95 %
Average Balance Sheet (billions)    
Interest bearing assets$17.3 $21.5 $25.2 $25.0 $24.0 $(4.1)(19)%$(6.7)(28)%
Total assets20.0 24.1 27.8 27.9 27.0 (4.2)(17)(7.0)(26)
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 22.
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 Third quarter and Second quarter 2022 includes 27.5 million shares related to the full impact of Series G convertible securities issued in connection with TD transaction; First quarter 2022 includes 9.8 million shares related to the one month average impact of these shares.


21

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
($s in millions, except per share data)3Q222Q221Q224Q213Q21
Tangible Common Equity (Non-GAAP)    
(A) Total equity (GAAP)$8,283 $8,551 $8,696 $8,494 $8,533 
Less: Noncontrolling interest (a)295 295 295 295 295 
Less: Preferred stock (a)1,014 1,014 1,014 520 520 
(B) Total common equity$6,974 $7,242 $7,387 $7,679 $7,717 
Less: Intangible assets (GAAP) (b)1,757 1,782 1,795 1,808 1,822 
(C) Tangible common equity (Non-GAAP)$5,217 $5,459 $5,592 $5,871 $5,895 
Tangible Assets (Non-GAAP) 
(D) Total assets (GAAP)$80,299 $85,132 $88,660 $89,092 $88,537 
Less: Intangible assets (GAAP) (b)1,757 1,782 1,795 1,808 1,822 
(E) Tangible assets (Non-GAAP)$78,542 $83,350 $86,865 $87,284 $86,715 
Period-end Shares Outstanding     
(F) Period-end shares outstanding537 536 535 534 542 
Ratios
(A)/(D) Total equity to total assets (GAAP)10.32 %10.04 %9.81 %9.53 %9.64 %
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)6.64 %6.55 %6.44 %6.73 %6.80 %
(B)/(F) Book value per common share (GAAP)$12.99 $13.50 $13.82 $14.39 $14.24 
(C)/(F) Tangible book value per common share (Non-GAAP)$9.72 $10.18 $10.46 $11.00 $10.88 
(a)     Included in Total equity on the Consolidated Balance Sheet.
(b)     Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.


22

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
3Q222Q221Q224Q213Q21
($s in millions, except per share data)GAAPNotable ItemsNon-GAAPGAAPNotable ItemsNon-GAAPGAAPNotable ItemsNon-GAAPGAAPNotable ItemsNon-GAAPGAAPNotable ItemsNon-GAAP
Interest income - FTE$733 $4 $737 $583 $3 $586 $510 $3 $513 $531 $3 $534 $533 $3 $536 
Interest expense- FTE71— 7141— 41 31— 31 33— 33 41— 41 
Net interest income- FTE6624 6665423 545 4793 482 4983 502 4923 495 
Less: Taxable-equivalent adjustment— 4 4 — 3 3 — 3 3 — 3 3 — 3 3 
Net interest income662 — 662 542 — 542 479 — 479 498 — 498 492 — 492 
Noninterest income:
Fixed income46 — 46 51 — 51 73 — 73 82 — 82 96 — 96 
Mortgage banking and title9 — 9 34 (12)22 22 — 22 28 — 28 34 — 34 
Brokerage, trust, and insurance34 — 34 36 — 36 37 — 37 36 — 36 37 — 37 
Service charges and fees56 — 56 57 — 57 57 — 57 56 — 56 56 — 56 
Card and digital banking fees21 — 21 23 — 23 20 — 20 19 — 19 21 — 21 
Deferred compensation income(3)— (3)(17)— (17)(4)— (4)— — — 3 — 3 
Other noninterest income50 (32)18 16 — 15 24 (6)18 25 — 25 (1)22 21 
Total noninterest income213 (32)181 201 (13)188 229 (6)223 247 — 246 247 22 268 
Total revenue875 (32)843 743 (13)730 707 (6)702 745 — 745 738 22 760 
Noninterest expense:
Personnel expense:
Salaries and benefits186 — 185 190 1 191 190 (2)188 190 — 189 191 — 191 
Incentives and commissions92 (24)68 93 (22)71 94 (2)92 93 (9)84 101 (10)92 
Deferred compensation expense(2)— (2)(18)— (18)(5)— (5)7 (6)1 4 — 4 
Total personnel expense275 (25)251 265 (21)244 280 (4)275 290 (16)274 296 (10)286 
Occupancy and equipment71 (1)70 73 (1)72 72 — 72 74 — 73 75 (1)74 
Outside services66 (2)64 70 (9)61 84 (25)59 81 (15)66 89 (24)65 
Amortization of intangible assets13 (1)12 13 (1)12 13 (1)12 14 (1)13 14 (1)13 
Other noninterest expense44 4 48 68 (18)50 44 (7)37 70 (23)46 52 (10)42 
Total noninterest expense468 (25)444 489 (50)438 493 (37)455 528 (54)474 526 (46)480 
Pre-provision net revenue406 (7)399 255 38 293 215 32 246 217 54 271 213 68 281 
Provision for credit losses60 — 60 30 — 30 (40)— (40)(65)— (65)(85)— (85)
Income before income taxes346 (7)339 225 38 263 255 32 286 282 54 336 298 68 365 
Provision for income taxes78 (2)76 48 9 57 57 7 64 53 13 65 63 17 80 
Net income268 (5)263 177 29 205 198 24 222 229 41 271 235 51 286 
Net income attributable to noncontrolling interest3 — 3 3 — 3 3 — 3 3 — 3 3 — 3 
Net income attributable to controlling interest265 (5)260 174 29 202 195 24 219 227 41 268 232 51 283 
Preferred stock dividends8 — 8 8 — 8 8 — 8 8 — 8 8 — 8 
Net income available to common shareholders$257 $(5)$252 $166 $29 $195 $187 $24 $211 $219 $41 $260 $224 $51 $275 
Common Stock Data
EPS$0.48 $0.01 $0.47 $0.31 $(0.05)$0.36 $0.35 $(0.05)$0.40 $0.41 $(0.08)$0.48 $0.41 $(0.09)$0.50 
Basic shares536 536 535 535 533 533 537 537 546 546 
Diluted EPS$0.45 $0.01 $0.44 $0.29 $(0.05)$0.34 $0.34 $(0.04)$0.38 $0.40 $(0.08)$0.48 $0.41 $(0.09)$0.50 
Diluted shares8
570 570 569 569 550 550 542 542 550 550 
Memo:
Total Revenue-FTE (Non-GAAP)$875 $(28)$847 $743 $(10)$733 $707 $3 $704 $745 $3 $748 $738 $24 $763 
PPNR-FTE (Non-GAAP)$406 $(3)$403 $255 $39 $295 $215 $34 $249 $217 $58 $274 $213 $71 $283 
Amounts adjusted for notable items as detailed on page 10.
Numbers may not foot due to rounding.
23

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
($s in millions, except per share data)3Q222Q221Q224Q213Q21
Adjusted Diluted EPS
Net income available to common shareholders ("NIAC") (GAAP)a$257 $166 $187 $219 $224 
Plus Tax effected notable items (Non-GAAP) (a)(5)29 24 41 51 
Adjusted net income available to common shareholders (Non-GAAP)b$252 $195 $211 $260 $275 
Diluted Shares (GAAP)8
c570 569 550 542 550 
Diluted EPS (GAAP)a/c$0.45 $0.29 $0.34 $0.40 $0.41 
Adjusted diluted EPS (Non-GAAP)b/c$0.44 $0.34 $0.38 $0.48 $0.50 
Adjusted Net Income ("NI") and Adjusted Return on Assets ("ROA")
Net Income ("NI") (GAAP)$268 $177 $198 $229 $235 
Plus Tax effected notable items (Non-GAAP) (a)(5)29 24 41 51 
Adjusted NI (Non-GAAP)$263 $206 $223 $270 $286 
NI (annualized) (GAAP)d$1,063 $709 $801 $910 $931 
Adjusted NI (annualized) (Non-GAAP)e$1,045 $823 $900 $1,074 $1,133 
Average assets (GAAP)f$82,551 $86,326 $88,587 $89,025 $88,401 
ROA (GAAP)d/f1.29 %0.82 %0.90 %1.02 %1.05 %
Adjusted ROA (Non-GAAP)e/f1.27 %0.95 %1.02 %1.21 %1.28 %
Return on Average Common Equity ("ROCE")/ Return on Average Tangible Common Equity ("ROTCE")/ Adjusted ROTCE
Net income available to common shareholders ("NIAC") (GAAP)g$1,020 $666 $756 $868 $887 
Adjusted Net income available to common shareholders (annualized) (Non-GAAP)h$1,001 $781 $855 $1,032 $1,089 
Average Common Equity (GAAP)i$7,360 $7,305 $7,628 $7,710 $7,761 
Intangible Assets (GAAP) (b)1,767 1,789 1,802 1,815 1,829 
Average Tangible Common Equity (Non-GAAP)j$5,593 $5,516 $5,826 $5,895 $5,932 
ROCE (GAAP)g/i13.85 %9.12 %9.92 %11.26 %11.43 %
ROTCE (Non-GAAP)g/j18.23 %12.07 %12.98 %14.72 %14.95 %
Adjusted ROTCE (Non-GAAP)h/j17.89 %14.15 %14.68 %17.51 %18.36 %
(a) Amounts adjusted for notable items as detailed on page 10.
(b)     Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.


24

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
(In millions)3Q222Q221Q224Q213Q21
Adjusted Noninterest Income as a % of Total Revenue
Noninterest income (GAAP)k$213 $201 $229 $247 $247 
Plus notable items (GAAP) (a)(32)(13)(6)— 22 
Adjusted noninterest income (Non-GAAP)l$181 $188 $223 $246 $268 
Revenue (GAAP)m$875 $743 $707 $745 $738 
Taxable-equivalent adjustment4 3 3 3 3 
Revenue- Taxable-equivalent (Non-GAAP)879 746 710 748 741 
Plus notable items (GAAP) (a)(32)(13)(6)— 22 
Adjusted revenue (Non-GAAP)n$847 $733 $704 $748 $763 
Noninterest income as a % of total revenue (GAAP)k/m24.30 %27.06 %32.31 %33.10 %33.39 %
Adjusted noninterest income as a % of total revenue (Non-GAAP)l/n21.37 %25.68 %31.63 %32.95 %35.14 %
Adjusted Efficiency Ratio
Noninterest expense (GAAP)o$468 $489 $493 $528 $526 
Plus notable items (GAAP) (a)(25)(50)(37)(54)(46)
Adjusted noninterest expense (Non-GAAP)p$444 $438 $455 $474 $480 
Revenue (GAAP)q$875 $743 $707 $745 $738 
Taxable-equivalent adjustment4 3 3 3 3 
Revenue- Taxable-equivalent (Non-GAAP)878 746 710 748 741 
Plus notable items (GAAP) (a)(32)(13)(6)— 22 
Adjusted revenue (Non-GAAP)r$847 $733 $704 $748 $763 
Efficiency ratio (GAAP)o/q53.56 %65.76 %69.66 %70.88 %71.21 %
Adjusted efficiency ratio (Non-GAAP)p/r52.42 %59.79 %64.64 %63.31 %62.87 %
(a) Amounts adjusted for notable items as detailed on page 10.
(b)     Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.
25

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
($s in millions)
3Q22 vs 2Q22
NII/NIM AnalysisNII%NIM
3Q22 Reported (FTE)$666 3.49 
Less: non-core items
PPP coupon income and fees2— 
Loan Accretion120.07 
IBKC Premium Amortization(7)(0.04)
3Q22 Core (FTE) (Non-GAAP)$659 24 %3.45 %
2Q22 Reported (FTE)$545 2.74 %
Less: non-core items
PPP coupon income and fees70.02 
Loan Accretion150.08 
IBKC Premium Amortization(8)(0.04)
2Q22 Core (FTE) (Non-GAAP)$532 2.69 %
Numbers may not foot due to rounding.

Period-endAverage
($s in millions)3Q222Q223Q22 vs 2Q223Q222Q223Q22 vs 2Q22
Loans excluding LMC & PPP$%$%
Total C& I excl. LMC & PPP$28,789 $27,459 $1,330 5 %$28,000 $26,993 $1,007 4 %
Total CRE13,02112,94279 1 %12,926 12,626 300 2 %
Total Commercial excl. LMC & PPP41,810 40,401 1,409 3 %40,926 39,619 1,307 3 %
Total Consumer12,71212,311401 3 %12,49611,987509 4 %
Total Loans excl. LMC & PPP54,52252,7121,810 3 %53,42251,6061,816 4 %
PPP121375(254)(68)%204478(274)(57)%
LMC2,7103,441(731)(21)%2,9173,492(574)(16)%
Total Loans$57,354 $56,529 $825 1 %$56,543 $55,576 $967 2 %
Loans excluding PPP
Total Commercial excl. PPP$44,520 $43,842 $677 2 %$43,843 $43,111 $732 2 %
Total Consumer12,71212,311401 3 %12,49611,987509 4 %
Total Loans excl. PPP57,232 56,153 1,079 2 %56,339 55,098 1,241 2 %
PPP121375(254)(68)%204478(274)(57)%
Total Loans$57,354 $56,529 $825 1 %$56,543 $55,576 $967 2 %
Numbers may not foot due to rounding.
26


GLOSSARY OF TERMS
Common Equity Tier 1 Ratio: Ratio consisting of common equity adjusted for certain unrealized gains/(losses) on available-for-sale securities, less disallowed portions of goodwill, other intangibles, and deferred tax assets as well as certain other regulatory deductions divided by risk-weighted assets.
 
Fully Taxable Equivalent (“FTE”): Reflects the amount of tax-exempt income adjusted to a level that would yield the same after-tax income had that income been subject to taxation.
 
Tier 1 Capital Ratio: Ratio consisting of shareholders’ equity adjusted for certain unrealized gains/(losses) on available-for-sale securities, plus qualifying portions of noncontrolling interests, less disallowed portions of goodwill, other intangible assets, and deferred tax assets as well as certain other regulatory deductions divided by risk-weighted assets.

Key Ratios
Return on Average Assets: Ratio is annualized net income to average total assets.
 
Return on Average Common Equity: Ratio is annualized net income available to common shareholders to average common equity.
 
Return on Average Tangible Common Equity: Ratio is annualized net income available to common shareholders to average tangible common equity.
 
Noninterest Income as a Percentage of Total Revenue: Ratio is noninterest income to total revenue - taxable equivalent.
 
Efficiency Ratio: Ratio is noninterest expense to total revenue - taxable equivalent .
 
Leverage Ratio: Ratio is tier 1 capital to average assets for leverage.

Asset Quality - Consolidated Key Ratios
Nonperforming loans and leases ("NPL") %: Ratio is nonaccruing loans and leases in the loan portfolio to total period-end loans and leases.
 
Net charge-offs %: Ratio is annualized net charge-offs to total average loans and leases.
 
Allowance / loans and leases: Ratio is allowance for loan and lease losses to total period-end loans and leases.
 
Allowance / Nonperforming loans and leases: Ratio is allowance for loan and lease losses to nonperforming loans and leases in the loan portfolio.
 
Allowance / charge-offs: Ratio is allowance for loan and lease losses to annualized net charge-offs.

Operating Segments
Regional Banking segment: Offers financial products and services, including traditional lending and deposit taking, to consumer and commercial customers primarily in the southern and southeastern U.S. and other selected markets. Regional Banking also provides investment, wealth management, financial planning, trust and asset management services for consumer customers.

Specialty Banking segment: Consists of lines of business that deliver product offerings and services with specialized industry knowledge. Specialty Banking’s lines of business include asset-based lending, mortgage warehouse lending, commercial real estate, franchise finance, correspondent banking, equipment finance, mortgage, and title insurance. In addition to traditional lending and deposit taking, Specialty Banking also delivers treasury management solutions, loan syndications, 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.

27