EX-99.1 2 a2q2024earningsrelease.htm EX-99.1 Document

fhnlogoa.jpg


First Horizon Corporation's Momentum Continues with Strong Second Quarter 2024 Results
Net Income Available to Common Shareholders of $184 Million or EPS of $0.34;
$195 Million or $0.36 on an Adjusted Basis, up $0.01 from prior quarter*

2Q24 ROTCE of 11.3% and Adjusted ROTCE of 12.0% with Tangible Book Value per Share of $12.22, up $0.06 QoQ*

MEMPHIS, TN (July 17, 2024) – First Horizon Corporation (NYSE: FHN or “First Horizon”) today reported second quarter net income available to common ("NIAC") shareholders of $184 million or earnings per share of $0.34, compared with first quarter 2024 net income available to common of $184 million or earnings per share of $0.33. Second quarter 2024 results were reduced by a net $11 million after-tax or $0.02 per share of notable items compared with $12 million or $0.02 per share in first quarter 2024. Excluding notable items, adjusted second quarter 2024 NIAC was $195 million or $0.36 per share compared to $195 million or $0.35 per share in first quarter 2024.

“We are pleased to report strong second quarter results. Our banking franchise delivered a solid quarter with net interest income and banking fee growth,” said Chairman, President and Chief Executive Officer Bryan Jordan. “Our balance sheet continues to perform well, which combined with strong earnings, enabled the return of $212 million of capital to shareholders this quarter.”

Jordan continued, “We continue to make significant progress on our strategic investments while identifying operational efficiencies that enhance the client experience and our financial performance. I am proud of the continued progress we have made in strengthening our competitive position and remain confident in our ability to continue to deliver value to our shareholders, associates, clients, and communities.”


Notable Items
Notable Items
Quarterly, Unaudited ($ in millions, except per share data)2Q241Q242Q23
Summary of Notable Items:
Gain on merger termination$— $— $225 
Net merger/acquisition/transaction-related items— — (30)
FDIC special assessment (other noninterest expense)(2)(10)— 
Other notable expenses (3)(5)(65)
Total notable items (pre-tax)$(5)$(15)$130 
Total notable items (after-tax) $(11)$(12)$98 
Numbers may not foot due to rounding.


Second quarter pre-tax notable items include an FDIC special assessment of $2 million and $3 million of restructuring costs. Second quarter after-tax notable items include $7 million of deemed dividends on the redemption of $100 million par value of Series D Preferred Stock.









*References to "Adjusted" results exclude notable items and, along with ROTCE and certain financial measures, are Non-GAAP Financial Measures. All references to loans include leases. All references to earnings per share are based on diluted shares. Please see page 4 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 20.
1


SUMMARY RESULTS
Quarterly, Unaudited
2Q24 Change vs.
($s in millions, except per share and balance sheet data)2Q241Q242Q231Q242Q23
$/bp%$/bp%
Income Statement
Interest income - taxable equivalent1
$1,097 $1,076 $1,019 $21 2 %$78 8 %
Interest expense- taxable equivalent1
464 448 385 16 4 79 21 
Net interest income- taxable equivalent633 628 635 5 1 (2)— 
Less: Taxable-equivalent adjustment4 4 4 — 10 — 6 
Net interest income629 625 631 4 1 (2)— 
Noninterest income186 194 400 (8)(4)(214)(54)
      Total revenue815 819 1,031 (4)(1)(216)(21)
Noninterest expense500 515 555 (15)(3)(55)(10)
Pre-provision net revenue3
315 304 475 11 4 (161)(34)
Provision for credit losses55 50 50 5 10 5 10 
Income before income taxes260 254 425 6 2 (166)(39)
Provision for income taxes56 57 96 (1)(2)(40)(42)
Net income204 197 329 7 4 (125)(38)
Net income attributable to noncontrolling interest5 5 5 — 1 — 7 
Net income attributable to controlling interest199 192 325 7 4 (126)(39)
Preferred stock dividends15 8 8 7 85 7 94 
Net income available to common shareholders$184 $184 $317 $— — %$(133)(42)%
Adjusted net income4
$208 $208 $231 $— — %$(23)(10)%
Adjusted net income available to common shareholders4
$195 $195 $219 $— — %$(24)(11)%
Common stock information
EPS$0.34 $0.33 $0.56 $0.01 2 %$(0.22)(39)%
Adjusted EPS4
$0.36 $0.35 $0.39 $0.01 2 %$(0.03)(9)%
Diluted shares8
547 558 561 (11)(2)%(14)(2)%
Key performance metrics
Net interest margin6
3.38 %3.37 %3.38 %1 bp— bp
Efficiency ratio61.44 62.92 53.89 (148)755 
Adjusted efficiency ratio4
60.47 60.78 56.92 (31)355 
Effective income tax rate21.49 22.48 22.63 (99)(114)
Return on average assets1.00 0.97 1.60 3 (60)
Adjusted return on average assets4
1.02 1.03 1.13 (1)(11)
Return on average common equity (“ROCE")9.0 8.8 16.4 22 (742)
Return on average tangible common equity (“ROTCE”)4
11.3 11.0 21.1 34 (981)
Adjusted ROTCE4
12.0 11.6 14.6 34 (260)
Noninterest income as a % of total revenue22.75 23.72 38.80 (97)(1,605)
Adjusted noninterest income as a % of total revenue4
22.64 %23.61 %21.60 %(97)bp104 bp
Balance Sheet (billions)
Average loans$62.0 $61.2 $59.9 $0.9 1 %$2.1 4 %
Average deposits65.0 65.4 61.4 (0.4)(1)3.5 6 
Average assets81.7 81.2 82.3 0.5 1 (0.6)(1)
Average common equity$8.2 $8.4 $7.7 $(0.2)(2)%$0.5 6 %
Asset Quality Highlights
Allowance for credit losses to loans and leases4
1.41 %1.40 %1.35 %— bp7 bp
Nonperforming loan and leases ratio0.91 %0.82 %0.66 %9 bp25 bp
Net charge-off ratio0.22 %0.27 %0.16 %(5)bp6 bp
Net Charge-offs$34 $40 $23 $(6)(16)%$11 46 %
Capital Ratio Highlights (current quarter is an estimate)
Common Equity Tier 111.0 %11.3 %11.1 %(26)bp(3)bp
Tier 112.0 12.3 12.1 (27)(4)
Total Capital13.7 13.9 13.6 (26)9 
Tier 1 leverage10.6 %10.8 %10.5 %(21)bp9 bp
Numbers may not foot due to rounding.
See footnote disclosures on page 19.

2

Second Quarter 2024 versus First Quarter 2024

Net interest income
Net interest income of $629 million increased $4 million and net interest margin of 3.38% increased 1 basis point from the benefit of higher loan volumes and yields, partially offset by continued mix shift within interest-bearing deposits products, higher use of wholesale funds, and lower average noninterest-bearing deposits.

Noninterest income
Noninterest income of $186 million decreased $8 million, with higher traditional banking fees partially offsetting a $12 million decrease in fixed income production, which was driven by a reduction in the market's rate cut expectations and lower portfolio restructuring activity.

Noninterest expense
Noninterest expense of $500 million declined $15 million from the prior quarter. Second quarter notable items included a $2 million FDIC special assessment and $3 million of restructuring costs, which are down from $10 million and $5 million respectively in first quarter 2024. Adjusted noninterest expense of $495 million decreased $5 million as reductions in incentives and deferred compensation were partially offset by increases in outside services expense associated with deposit marketing campaigns and third-party services for strategic investments.

Loans and leases
Average loan and lease balances of $62.0 billion were up $0.9 billion or 1% compared to the prior quarter, while period-end balances of $62.8 billion increased $1.0 billion or 2% from first quarter 2024. The spring home-buying season drove increases in loans to mortgage companies (LMC) and continued fund ups in multi-family within commercial real estate also contributed to the growth. Loan yields of 6.34% improved 6 basis points from wider spreads on new and renewing loans, as well as continued repricing of fixed rate cash flows.

Deposits
Average deposits of $65.0 billion decreased $0.4 billion or 1% from first quarter 2024, largely driven by lower noninterest-bearing deposits, which declined early in the first quarter before stabilizing. Period-end deposits of $64.8 billion decreased $0.9 billion or 1% from the prior quarter, including a $0.7 billion decline in public funds, which was impacted by seasonality. Total deposit costs and interest-bearing deposit costs both increased 2 basis points from the prior quarter to 2.47% and 3.30%, respectively.

Asset quality
Provision expense of $55 million increased $5 million from the previous quarter. Net charge-offs were $34 million or 22 basis points. Nonperforming loans of $574 million increased $69 million, with declines in C&I more than offset by increases in CRE. The ACL to loans ratio of 1.41% increased slightly from 1.40% in first quarter 2024. Modest grade migration continued in the second quarter, but overall credit performance is stable after normalizing from a prolonged benign environment.

Capital
Achieved the near-term CET1 ratio target of 11.0%, down from 11.3% in first quarter 2024 as $212 million of excess capital was returned to shareholders through the share repurchase program. FHN repurchased 13.9 million shares of common stock in second quarter 2024 at a weighted average price of $15.26. Year-to-date, FHN repurchased 25 million shares or $366 million of common stock under the $650 million share repurchase program authorized in 1Q24.

Income taxes
The effective tax rate and the adjusted effective tax rate for second quarter 2024 was 21.5% compared with 22.5% in first quarter 2024.



3



Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements pertain to FHN's beliefs, plans, goals, expectations, and estimates. Forward-looking statements are not a representation of historical information, but instead pertain to future operations, strategies, financial results, or other developments. Forward-looking statements can be identified by the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “should,” “is likely,” “will,” “going forward,” and other expressions that indicate future events and trends.

Forward-looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, operational, economic, and competitive uncertainties and contingencies, many of which are beyond FHN’s control, and many of which, with respect to future business decisions and actions (including acquisitions and divestitures), are subject to change and could cause FHN’s actual future results and outcomes to differ materially from those contemplated or implied by forward-looking statements or historical performance. Examples of uncertainties and contingencies include those mentioned: in this document; in Items 2.02 and 7.01 of FHN’s Current Report on Form 8-K to which this document has been filed as an exhibit; in the forepart, and in Items 1, 1A, and 7, of FHN’s most recent Annual Report on Form 10-K; and in the forepart, and in Item 1A of Part II, of FHN’s Quarterly Report(s) on Form 10-Q filed after that Annual Report.

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"), return on average tangible common equity (“ROTCE”), tangible common equity (“TCE”) to tangible assets (“TA”), tangible book value ("TBV") per common share, and various consolidated and segment results and performance measures and ratios adjusted for notable items.

Presentation of regulatory measures, even those which are not GAAP, provide a meaningful base for comparability to other financial institutions subject to the same regulations as FHN, as demonstrated by their use by banking regulators in reviewing capital adequacy of financial institutions. Although not GAAP terms, these regulatory measures are not considered “non-GAAP” under U.S. financial reporting rules as long as their presentation conforms to regulatory standards. Regulatory measures used in this financial supplement include: common equity tier 1 capital ("CET1"), generally defined as common equity less goodwill, other intangibles, and certain other required regulatory deductions; tier 1 capital, generally defined as the sum of core capital (including common equity and instruments that cannot be redeemed at the option of the holder) adjusted for certain items under risk based capital regulations; and risk-weighted assets, which is a measure of total on- and off-balance sheet assets adjusted for credit and market risk, used to determine regulatory capital ratios.

Refer to the tabular reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items, beginning on page 20.
4

Conference Call Information
Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on July 17, 2024 by dialing 1-833-470-1428 (if calling from the U.S.) or 404-975-4839 (if calling from outside the U.S) and entering access code 463278. The conference call will begin at 8:30 a.m. CT.

Participants can also opt to listen to the live audio webcast at https://ir.firsthorizon.com/events-and-presentations/default.aspx.

A replay of the call will be available beginning at noon CT on July 17 until midnight CT on July 31, 2024. To listen to the replay, dial 1-866-813-9403 (U.S. callers); the access code is 610953. A replay of the webcast will also be available on our website on July 17 and will be archived on the site for one year.

First Horizon Corp. (NYSE: FHN), with $82.2 billion in assets as of June 30, 2024, 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 - Natalie.Flanders@firsthorizon.com
Media Relations - Beth.Ardoin@firsthorizon.com
5

CONSOLIDATED INCOME STATEMENT
Quarterly, Unaudited
     2Q24 Change vs.
($s in millions, except per share data)2Q241Q244Q233Q232Q231Q242Q23
$ %$ %
Interest income - taxable equivalent1
$1,097 $1,076 $1,090 $1,084 $1,019 $21 2 %$78 8 %
Interest expense- taxable equivalent1
464 448 469 475 385 16 4 79 21 
Net interest income- taxable equivalent633 628 621 609 635 5 1 (2)— 
Less: Taxable-equivalent adjustment4 4 4 4 4 — 10 — 6 
Net interest income629 625 617 605 631 4 1 (2)— 
Noninterest income:
Fixed income40 52 37 28 30 (12)(23)10 34 
Mortgage banking10 9 5 7 6 2 19 4 66 
Brokerage, trust, and insurance38 36 36 34 35 2 6 3 10 
Service charges and fees58 57 59 60 59 1 2 (1)— 
Card and digital banking fees20 19 16 20 21 1 7 (1)(5)
Deferred compensation income3 9 6 — 8 (6)(66)(5)(63)
Gain on merger termination— — — — 225 — NM (225)(100)
Other noninterest income17 14 23 25 17 3 18 (1)(3)
Total noninterest income186 194 183 173 400 (8)(4)(214)(54)
Total revenue815 819 800 778 1,031 (4)(1)(216)(21)
Noninterest expense:
Personnel expense:
Salaries and benefits198 200 190 188 191 (2)(1)7 4 
Incentives and commissions79 92 82 77 86 (13)(14)(8)(9)
Deferred compensation expense3 9 7 — 8 (6)(67)(5)(62)
Total personnel expense279 301 279 266 285 (21)(7)(5)(2)
Occupancy and equipment2
72 72 71 67 68 — — 4 5 
Outside services78 65 84 69 71 13 19 7 10 
Amortization of intangible assets11 11 12 12 12 — — (1)(8)
Other noninterest expense60 67 127 60 119 (6)(10)(59)(50)
Total noninterest expense500 515 572 474 555 (15)(3)(55)(10)
Pre-provision net revenue3
315 304 227 304 475 11 4 (161)(34)
Provision for credit losses55 50 50 110 50 5 10 5 10 
Income before income taxes260 254 177 194 425 6 2 (166)(39)
Provision for income taxes56 57 (11)52 96 (1)(2)(40)(42)
Net income204 197 188 142 329 7 4 (125)(38)
Net income attributable to noncontrolling interest5 5 5 5 5 — 1 — 7 
Net income attributable to controlling interest199 192 183 137 325 7 4 (126)(39)
Preferred stock dividends15 8 8 8 8 7 85 7 94 
Net income available to common shareholders$184 $184 $175 $129 $317 $— — %$(133)(42)%
Common Share Data
EPS$0.34 $0.33 $0.31 $0.23 $0.59 $0.01 2 %$(0.25)(42)%
Basic shares544 555 559 559 539 (11)(2)5 1 
Diluted EPS$0.34 $0.33 $0.31 $0.23 $0.56 $0.01 2 $(0.22)(39)
Diluted shares8
547 558 561 561 561 (11)(2)%(14)(2)%
Effective tax rate21.5 %22.5 %(6.2)%26.7 %22.6 %
Numbers may not foot due to rounding. See footnote disclosures on page 19.
6

ADJUSTED4 FINANCIAL DATA - SEE NOTABLE ITEMS ON PAGE 8
Quarterly, Unaudited
     2Q24 Change vs.
($s in millions, except per share data)2Q241Q244Q233Q232Q231Q242Q23
$%$%
Net interest income (FTE)1
$633 $628 $621 $609 $635 $5 1 %$(2)— %
Adjusted noninterest income:
Fixed income40 52 37 28 30 (12)(23)10 34 
Mortgage banking10 9 5 7 6 2 19 4 66 
Brokerage, trust, and insurance38 36 36 34 35 2 6 3 10 
Service charges and fees58 57 59 60 59 1 2 (1)— 
Card and digital banking fees20 19 16 20 21 1 7 (1)(5)
Deferred compensation income3 9 6 — 8 (6)(66)(5)(63)
Gain on merger termination— — — — — — NM — NM
Adjusted other noninterest income17 14 20 25 17 3 18 (1)(3)
Adjusted total noninterest income$186 $194 $179 $173 $175 $(8)(4)%$11 6 %
Total revenue (FTE)1
$819 $823 $800 $782 $810 $(4)— %$9 1 %
Adjusted noninterest expense:
Adjusted personnel expense:
Adjusted salaries and benefits$198 $199 $190 $188 $187 $(1)(1)%$11 6 %
Adjusted Incentives and commissions78 87 80 68 65 (9)(10)13 20 
Deferred compensation expense3 9 7 — 8 (6)(67)(5)(62)
Adjusted total personnel expense279 295 277 256 260 (16)(5)19 7 
Adjusted occupancy and equipment2
72 72 71 67 68 — — 4 5 
Outside services75 65 84 69 68 10 15 7 10 
Amortization of intangible assets11 11 12 12 12 — — (1)(8)
Adjusted other noninterest expense58 57 59 60 53 1 2 5 9 
Adjusted total noninterest expense$495 $500 $502 $465 $461 $(5)(1)%$34 7 %
Adjusted pre-provision net revenue4
$324 $323 $298 $318 $349 $1 — %$(25)(7)%
Provision for credit losses$55 $50 $50 $110 $50 $5 10 %$5 10 %
Adjusted net income available to common shareholders$195 $195 $178 $150 $219 $— — %$(24)(11)%
Adjusted Common Share Data
Adjusted diluted EPS$0.36 $0.35 $0.32 $0.27 $0.39 $0.01 2 %$(0.03)(9)%
Diluted shares8
547 558 561 561 561 (11)(2)%(14)(2)%
Adjusted effective tax rate21.5 %22.5 %21.7 %20.1 %21.6 %
Adjusted ROTCE12.0 %11.6 %11.1 %9.2 %14.6 %
Adjusted efficiency ratio60.5 %60.8 %62.8 %59.4 %56.9 %
Numbers may not foot due to rounding.
See footnote disclosures on page 19.

7


NOTABLE ITEMS
Quarterly, Unaudited
(In millions)2Q241Q244Q233Q232Q23
Summary of Notable Items:
Gain on merger termination$— $— $— $— $225 
Net merger/acquisition/transaction-related items— — — — (30)
Gain/(loss) related to equity securities investments (other noninterest income)— — (6)— — 
Net gain on asset disposition (other noninterest income less incentives)— — 7 — — 
FDIC special assessment (other noninterest expense)(2)(10)(68)— — 
Other notable expenses *(3)(5)— (10)(65)
Total notable items (pre-tax)$(5)$(15)$(67)$(10)$130 
Tax-related notable items **$— $— $48 $(13)$— 
Preferred Stock Dividend ***$(7)$— $— $— $— 
Numbers may not foot due to rounding
* 2Q24, 1Q24 and 3Q23 include $3 million, $5 million and $10 million of restructuring expenses; 2Q23 includes $50 million contribution to First Horizon Foundation and $15 million of Visa derivative valuation expenses.
** 4Q23 includes a $48 million after-tax benefit primarily from the resolution of IberiaBank merger-related tax items; 3Q23 includes after-tax notable items of $24 million related to the surrender of approximately $214 million in book value of bank owned life insurance policies, partially offset by an $11 million benefit from merger-related tax items.
*** 2Q24 includes $7 million deemed dividends on the redemption of $100 million par value of Series D Preferred Stock.

IMPACT OF NOTABLE ITEMS:
Quarterly, Unaudited
     
(In millions)2Q241Q244Q233Q232Q23
Impacts of Notable Items:
Noninterest income:
Gain on merger termination$— $— $— $— $(225)
Other noninterest income— — (4)— — 
Total noninterest income$— $— $(4)$— $(225)
Noninterest expense:
Personnel expenses:
Salaries and benefits$— $— $— $— $(4)
Incentives and commissions(1)(5)(2)(9)(21)
Total personnel expenses(1)(5)(2)(10)(25)
Outside services(3)— — — (4)
Other noninterest expense(2)(10)(68)— (66)
Total noninterest expense$(5)$(15)$(70)$(10)$(95)
Income before income taxes$5 $15 $67 $10 $(130)
Provision for income taxes *1 3 64 (11)(33)
Preferred stock dividends **(7)— — — — 
Net income/(loss) available to common shareholders$11 $12 $3 $20 $(98)
EPS impact of notable items$0.02 $0.02 $0.01 $0.04 $(0.17)
Numbers may not foot due to rounding
* 4Q23 includes a $48 million after-tax benefit primarily from the resolution of IberiaBank merger-related tax items; 3Q23 includes after-tax notable items of $24 million related to the surrender of approximately $214 million in book value of bank owned life insurance policies, partially offset by an $11 million benefit from merger-related tax items.
** 2Q24 includes $7 million deemed dividends on the redemption of $100 million par value of Series D Preferred Stock.
8


FINANCIAL RATIOS
Quarterly, Unaudited
     2Q24 Change vs.
2Q241Q244Q233Q232Q231Q242Q23
FINANCIAL RATIOS$/bp%$/bp%
Net interest margin6
3.38 %3.37 %3.27 %3.17 %3.38 %1 bp— bp
Return on average assets1.00 %0.97 %0.91 %0.68 %1.60 %3 (60)
Adjusted return on average assets4
1.02 %1.03 %0.92 %0.78 %1.13 %(1)(11)
Return on average common equity (“ROCE”)8.98 %8.76 %8.60 %6.28 %16.40 %22 (742)
Return on average tangible common equity (“ROTCE”)4
11.29 %10.95 %10.89 %7.95 %21.10 %34 (981)
Adjusted ROTCE4
11.99 %11.65 %11.05 %9.21 %14.59 %34 (260)
Noninterest income as a % of total revenue22.75 %23.72 %23.33 %22.23 %38.80 %(97)(1,605)
Adjusted noninterest income as a % of total revenue4
22.64 %23.61 %22.32 %22.11 %21.60 %(97)104 
Efficiency ratio61.44 %62.92 %71.14 %60.96 %53.89 %(148)755 
Adjusted efficiency ratio4
60.47 %60.78 %62.84 %59.43 %56.92 %(31)355 
Allowance for credit losses to loans and leases4
1.41 %1.40 %1.40 %1.36 %1.35 %1 6 
CAPITAL DATA
CET1 capital ratio*
11.0 %11.3 %11.4 %11.1 %11.1 %(26)bp(3)bp
Tier 1 capital ratio*12.0 %12.3 %12.4 %12.1 %12.1 %(27)bp(4)bp
Total capital ratio*13.7 %13.9 %14.0 %13.6 %13.6 %(26)bp9 bp
Tier 1 leverage ratio*10.6 %10.8 %10.7 %10.5 %10.5 %(21)bp9 bp
Risk-weighted assets (“RWA”) (billions)*$71.9 $71.1 $71.1 $71.9 $71.5 $0.8 1 %$0.4 1 %
Total equity to total assets 10.89 %11.21 %11.38 %10.65 %10.53 %(32)bp36 bp
Tangible common equity/tangible assets (“TCE/TA”)4
8.14 %8.33 %8.48 %7.76 %7.71 %(19)bp44 bp
Period-end shares outstanding (millions)8
537 549 559 559 559 (12)(2)%(22)(4)%
Cash dividends declared per common share$0.15 $0.15 $0.15 $0.15 $0.15 $— — %$— — %
Book value per common share$15.34 $15.23 $15.17 $14.28 $14.58 $0.11 1 %$0.76 5 %
Tangible book value per common share4
$12.22 $12.16 $12.13 $11.22 $11.50 $0.06 — %$0.72 6 %
SELECTED BALANCE SHEET DATA
Loans-to-deposit ratio (period-end balances)96.89 %93.93 %93.18 %92.18 %93.68 %296 bp321 bp
Loans-to-deposit ratio (average balances)95.49 %93.54 %91.53 %92.35 %97.52 %195 bp(203)bp
Full-time equivalent associates7,297 7,327 7,277 7,340 7,327 (30)— %(30)— %
*Current quarter is an estimate.
See footnote disclosures on page 19.
9


CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited 
     2Q24 Change vs.
(In millions)2Q241Q244Q233Q232Q231Q242Q23
Assets:$%$%
Loans and leases:      
Commercial, financial, and industrial (C&I)$33,452 $32,911 $32,632 $33,163 $33,116 $542 2 %$337 1 %
Commercial real estate14,669 14,426 14,216 14,121 13,891 242 2 778 6 
Total Commercial48,121 47,337 46,849 47,283 47,006 784 2 1,115 2 
Consumer real estate13,909 13,645 13,650 13,685 13,475 264 2 434 3 
Credit card and other5
751 771 793 809 813 (20)(3)(63)(8)
Total Consumer14,660 14,416 14,443 14,494 14,289 244 2 371 3 
Loans and leases, net of unearned income62,781 61,753 61,292 61,778 61,295 1,028 2 1,486 2 
Loans held for sale471 395 502 613 789 76 19 (319)(40)
Investment securities9,221 9,460 9,714 9,435 9,949 (238)(3)(728)(7)
Trading securities1,249 1,161 1,412 1,231 1,059 88 8 191 18 
Interest-bearing deposits with banks1,452 1,885 1,328 1,917 4,523 (432)(23)(3,071)(68)
Federal funds sold and securities purchased under agreements to resell487 817 719 416 282 (330)(40)205 73 
Total interest earning assets75,662 75,470 74,967 75,389 77,898 191 — (2,236)(3)
Cash and due from banks969 749 1,012 1,022 1,137 219 29 (168)(15)
Goodwill and other intangible assets, net1,674 1,685 1,696 1,709 1,720 (11)(1)(46)(3)
Premises and equipment, net584 586 590 590 595 (3)— (11)(2)
Allowance for loan and lease losses(821)(787)(773)(760)(737)(34)(4)(84)(11)
Other assets4,162 4,094 4,169 4,584 4,458 68 2 (296)(7)
Total assets$82,230 $81,799 $81,661 $82,533 $85,071 $431 1 %$(2,841)(3)%
Liabilities and Shareholders' Equity:
Deposits:
Savings$25,437 $25,847 $25,082 $25,590 $23,733 $(410)(2)%$1,704 7 %
Time deposits7,163 6,297 6,804 7,783 8,279 866 14 (1,116)(13)
Other interest-bearing deposits15,845 17,186 16,689 15,817 14,620 (1,341)(8)1,226 8 
Total interest-bearing deposits48,446 49,331 48,576 49,190 46,632 (885)(2)1,814 4 
Trading liabilities423 467 509 366 174 (44)(9)248 NM
Federal funds purchased and securities sold under agreements to repurchase2,572 2,137 2,223 2,015 2,169 435 20 403 19 
Short-term borrowings1,943 566 326 492 4,777 1,377 NM (2,834)(59)
Term borrowings1,175 1,165 1,150 1,157 1,156 10 1 19 2 
Total interest-bearing liabilities54,559 53,665 52,783 53,220 54,908 893 2 (350)(1)
Noninterest-bearing deposits16,348 16,410 17,204 17,825 18,801 (62)— (2,453)(13)
Other liabilities2,368 2,550 2,383 2,694 2,403 (182)(7)(34)(1)
Total liabilities73,275 72,626 72,370 73,740 76,112 649 1 (2,837)(4)
Shareholders' Equity:
Preferred stock426 520 520 520 520 (94)(18)(94)(18)
Common stock336 343 349 349 349 (7)(2)(14)(4)
Capital surplus5,007 5,214 5,351 5,337 5,324 (207)(4)(317)(6)
Retained earnings4,172 4,072 3,964 3,874 3,830 101 2 342 9 
Accumulated other comprehensive loss, net(1,281)(1,271)(1,188)(1,582)(1,359)(10)(1)78 6 
Combined shareholders' equity8,660 8,878 8,996 8,498 8,664 (218)(2)(4)— 
Noncontrolling interest295 295 295 295 295 — — — — 
Total shareholders' equity8,955 9,173 9,291 8,794 8,960 (218)(2)(4)— 
Total liabilities and shareholders' equity$82,230 $81,799 $81,661 $82,533 $85,071 $431 1 %$(2,841)(3)%
Memo:
Total deposits$64,794 $65,741 $65,780 $67,015 $65,433 $(947)(1)%$(639)(1)%
Loans to mortgage companies$2,934 $2,366 $2,024 $2,237 $2,691 $568 24 %$243 9 %
Unfunded Loan Commitments:
Commercial$18,781 $19,996 $21,328 $22,063 $22,134 $(1,215)(6)%$(3,353)(15)%
Consumer$4,334 $4,383 $4,401 $4,432 $4,400 $(49)(1)%$(66)(2)%
Numbers may not foot due to rounding. See footnote disclosures on page 19.
10

CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited 
     2Q24 Change vs.
(In millions)2Q241Q244Q233Q232Q231Q242Q23
Assets:$%$%
Loans and leases:      
Commercial, financial, and industrial (C&I)$32,909 $32,389 $32,520 $33,042 $32,423 $519 2 %$485 1 %
Commercial real estate14,576 14,367 14,210 13,999 13,628 209 1 949 7 
Total Commercial47,485 46,756 46,730 47,041 46,051 728 2 1,434 3 
Consumer real estate13,783 13,615 13,664 13,575 13,058 168 1 725 6 
Credit card and other5
761 781 802 816 815 (20)(3)(54)(7)
Total Consumer14,544 14,396 14,466 14,391 13,873 148 1 671 5 
Loans and leases, net of unearned income62,029 61,152 61,197 61,432 59,924 876 1 2,105 4 
Loans held-for-sale462 454 547 782 731 8 2 (269)(37)
Investment securities9,261 9,590 9,394 9,811 10,192 (329)(3)(931)(9)
Trading securities1,367 1,245 1,225 1,099 1,110 122 10 257 23 
Interest-bearing deposits with banks1,449 1,793 2,556 2,867 3,110 (344)(19)(1,661)(53)
Federal funds sold and securities purchased under agreements to resell676 544 529 315 279 132 24 397 142 
Total interest earning assets75,243 74,778 75,448 76,306 75,346 465 1 (103)— 
Cash and due from banks904 948 994 997 1,024 (45)(5)(121)(12)
Goodwill and other intangibles assets, net1,680 1,691 1,702 1,714 1,726 (11)(1)(47)(3)
Premises and equipment, net585 587 589 592 598 (2)— (13)(2)
Allowances for loan and lease losses(810)(789)(772)(766)(728)(22)(3)(82)(11)
Other assets4,120 4,028 4,352 4,377 4,338 92 2 (218)(5)
Total assets$81,721 $81,243 $82,313 $83,220 $82,304 $477 1 %$(583)(1)%
Liabilities and shareholders' equity:
Deposits:
Savings$25,462 $25,390 $25,799 $24,963 $21,542 $72 — %$3,920 18 %
Time deposits6,683 6,628 7,372 8,087 5,520 55 1 1,163 21 
Other interest-bearing deposits16,484 16,735 16,344 15,329 14,719 (251)(2)1,765 12 
Total interest-bearing deposits48,629 48,753 49,515 48,379 41,781 (124)— 6,847 16 
Trading liabilities605 462 386 276 216 144 31 389 NM
Federal funds purchased and securities sold under agreements to repurchase2,208 2,014 1,982 1,970 1,634 195 10 %574 35 %
Short-term borrowings1,267 537 437 1,790 6,365 730 136 (5,098)(80)
Term borrowings1,170 1,156 1,156 1,161 1,428 14 1 (258)(18)
Total interest-bearing liabilities53,879 52,921 53,475 53,575 51,424 957 2 2,455 5 
Noninterest-bearing deposits16,332 16,626 17,347 18,145 19,664 (294)(2)(3,332)(17)
Other liabilities2,561 2,445 2,585 2,522 2,187 116 5 374 17 
Total liabilities72,772 71,992 73,407 74,242 73,275 779 1 (503)(1)
Shareholders' Equity:
Preferred stock426 520 520 520 986 (94)(18)(560)(57)
Common stock 340 347 349 349 337 (7)(2)3 1 
Capital surplus5,127 5,301 5,343 5,330 4,891 (174)(3)236 5 
Retained earnings4,122 4,028 3,935 3,861 3,759 93 2 362 10 
Accumulated other comprehensive loss, net(1,361)(1,240)(1,538)(1,378)(1,241)(121)(10)(121)(10)
Combined shareholders' equity8,654 8,956 8,610 8,683 8,734 (302)(3)(80)(1)
Noncontrolling interest295 295 295 295 295 — — — — 
Total shareholders' equity8,949 9,251 8,905 8,978 9,029 (302)(3)(80)(1)
Total liabilities and shareholders' equity$81,721 $81,243 $82,313 $83,220 $82,304 $477 1 %$(583)(1)%
Memo:
Total deposits$64,960 $65,379 $66,862 $66,523 $61,445 $(418)(1)%$3,515 6 %
Loans to mortgage companies$2,440 $1,847 $1,948 $2,353 $2,262 $593 32 %$177 8 %
Numbers may not foot due to rounding. See footnote disclosures on page 19.
11

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCE SHEET: YIELDS AND RATES
Quarterly, Unaudited 
   2Q24 Change vs.
2Q241Q244Q233Q232Q231Q242Q23
(In millions, except rates)Income/ExpenseRateIncome/ExpenseRateIncome/ExpenseRateIncome/ExpenseRateIncome/ExpenseRateIncome/ExpenseIncome/Expense
$/bp%$/bp%
Interest earning assets/Interest income:   
Loans and leases, net of unearned income:
Commercial$800 6.78 %$782 6.73 %$783 6.65 %$779 6.58 %$727 6.34 %$18 2 %$73 10 %
Consumer179 4.91 173 4.80 171 4.71 165 4.55 153 4.39 6 3 26 17 
Loans and leases, net of unearned income978 6.34 955 6.28 954 6.19 944 6.10 880 5.89 23 2 98 11 
Loans held-for-sale9 7.50 9 7.80 11 8.34 15 7.88 14 7.58 — (1)(5)(37)
Investment securities60 2.58 61 2.54 61 2.62 62 2.54 63 2.49 (1)(2)(4)(6)
Trading securities22 6.30 20 6.48 20 6.63 19 7.03 19 6.69 1 7 3 16 
Interest-bearing deposits with banks20 5.46 24 5.46 35 5.46 39 5.34 40 5.13 (5)(19)(20)(51)
Federal funds sold and securities purchased under agreements9 5.31 7 5.16 7 5.32 4 5.06 3 4.85 2 28 6 NM
Interest income$1,097 5.86 %$1,076 5.78 %$1,089 5.74 %$1,084 5.64 %$1,019 5.42 %$21 2 %$78 8 %
Interest bearing liabilities/Interest expense:
Interest-bearing deposits:
Savings$208 3.29 %$206 3.27 %$222 3.42 %$219 3.48 %$141 2.63 %$2 1 %$67 48 %
Time deposits74 4.45 73 4.42 82 4.42 89 4.35 49 3.56 1 1 25 51 
Other interest-bearing deposits117 2.86 119 2.86 116 2.81 102 2.64 75 2.06 (2)(1)42 56 
Total interest-bearing deposits399 3.30 398 3.28 420 3.37 409 3.36 265 2.55 1 — 134 50 
Trading liabilities7 4.46 5 4.31 4 4.59 3 4.20 2 3.82 2 35 5 NM
Federal funds purchased and securities sold under agreements to repurchase24 4.36 21 4.24 22 4.35 21 4.24 15 3.74 3 13 9 57 
Short-term borrowings17 5.48 7 5.43 6 5.41 24 5.42 83 5.25 10 138 (66)(79)
Term borrowings17 5.64 17 5.71 17 5.75 17 5.82 19 5.21 — — (2)(11)
Interest expense464 3.46 448 3.40 469 3.48 475 3.52 385 3.00 16 4 79 21 
Net interest income - tax equivalent basis633 2.40 628 2.38 621 2.26 609 2.12 635 2.42 5 1 (2)— 
Fully taxable equivalent adjustment(4)0.98 (4)0.99 (4)1.01 (4)1.05 (4)0.96 — (10)— (6)
Net interest income$629 3.38 %$625 3.37 %$617 3.27 %$605 3.17 %$631 3.38 %$4 1 %$(2)— %
Memo:
Total loan yield6.34 %6.28 %6.19 %6.10 %5.89 %6 bp45 bp
Total deposit cost2.47 %2.45 %2.49 %2.44 %1.73 %2 bp74 bp
Total funding cost2.66 %2.59 %2.63 %2.63 %2.17 %7 bp49 bp
Average loans and leases, net of unearned income$62,029 $61,152 $61,197 $61,432 $59,924 $876 1 %$2,105 4 %
Average deposits64,96065,37966,86266,52361,445(418)(1)%3,515 6 %
Average funded liabilities70,21069,54770,82271,72071,088$663 1 %$(877)(1)%
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 19.
12

CONSOLIDATED NONPERFORMING LOANS AND LEASES ("NPL")
Quarterly, Unaudited 
As of 2Q24 change vs.
(In millions, except ratio data)2Q241Q244Q233Q232Q231Q242Q23
$%$%
Nonperforming loans and leases
Commercial, financial, and industrial (C&I)$167 $206 $184 $123 $184 $(39)(19)%$(16)(9)%
Commercial real estate261 157 136 125 73 104 66 188 NM
Consumer real estate143 140 139 145 144 4 3 (1)— 
Credit card and other5
2 2 2 2 2 — 21 — (15)
Total nonperforming loans and leases$574 $505 $462 $394 $402 $69 14 %$171 43 %
Asset Quality Ratio
Nonperforming loans and leases to loans and leases
Commercial, financial, and industrial (C&I)0.50 %0.63 %0.57 %0.37 %0.55 %
Commercial real estate1.78 1.09 0.96 0.88 0.52 
Consumer real estate1.03 1.02 1.02 1.06 1.07 
Credit card and other5
0.25 0.20 0.30 0.26 0.27 
Total nonperforming loans and leases to loans and leases0.91 %0.82 %0.75 %0.64 %0.66 %
Numbers may not foot due to rounding.
See footnote disclosures on page 19.



CONSOLIDATED LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING
Quarterly, Unaudited
As of2Q24 change vs.
(In millions)2Q241Q244Q233Q232Q231Q242Q23
$%$%
Loans and leases 90 days or more past due and accruing
Commercial, financial, and industrial (C&I)$— $— $1 $3 $1 $— NM$(1)NM
Commercial real estate— — — — — — NM — NM
Consumer real estate3 6 17 12 8 (3)(47)(5)(58)
Credit card and other5
2 3 3 3 5 (1)(25)(2)(52)
Total loans and leases 90 days or more past due and accruing$6 $10 $21 $17 $14 $(4)(38)%$(8)(56)%
Numbers may not foot due to rounding.
See footnote disclosures on page 19.
13


CONSOLIDATED NET CHARGE-OFFS (RECOVERIES)
Quarterly, Unaudited
As of2Q24 change vs.
(In millions, except ratio data)2Q241Q244Q233Q232Q231Q242Q23
Charge-off, Recoveries and Related Ratios$%$%
Gross Charge-offs
Commercial, financial, and industrial (C&I) *$24 $28 $31 $92 $19 $(4)(13)%$5 28 %
Commercial real estate19 12 2 5 8 7 54 11 NM
Consumer real estate1 — 1 1 1 1 NM— 46 
Credit card and other5
5 6 6 7 5 (1)(16)— 1 
Total gross charge-offs$49 $46 $41 $104 $33 $3 6 %$16 50 %
Gross Recoveries
Commercial, financial, and industrial (C&I)$(11)$(3)$(2)$(5)$(5)$(9)NM $(7)NM
Commercial real estate— — — — (1)— 91 1 99 
Consumer real estate(2)(1)(2)(2)(3)(1)(74)— 9 
Credit card and other5
(1)(2)(1)(1)(1)— 27 — (2)
Total gross recoveries$(15)$(6)$(5)$(9)$(9)$(9)NM $(6)(62)%
Net Charge-offs (Recoveries)
Commercial, financial, and industrial (C&I) *$13 $25 $29 $86 $14 $(12)(49)%$(1)(10)%
Commercial real estate19 12 2 4 8 7 55 11 NM
Consumer real estate(1)(1)— (2)(2)— (53)1 29 
Credit card and other5
3 4 5 6 3 — (12)— 1 
Total net charge-offs$34 $40 $36 $95 $23 $(6)(16)%$11 46 %
Annualized Net Charge-off (Recovery) Rates
Commercial, financial, and industrial (C&I) *0.16 %0.31 %0.36 %1.04 %0.18 %
Commercial real estate0.53 0.35 0.06 0.12 0.23 
Consumer real estate(0.04)(0.03)— (0.05)(0.06)
Credit card and other5
1.79 1.98 2.36 2.77 1.65 
Total loans and leases0.22 %0.27 %0.23 %0.61 %0.16 %
Numbers may not foot due to rounding.
•3Q23 increase driven by a single credit from a company in bankruptcy.
See footnote disclosures on page 19.
14


CONSOLIDATED ALLOWANCE FOR LOAN AND LEASE LOSSES AND RESERVE FOR UNFUNDED COMMITMENTS
Quarterly, Unaudited
As of2Q24 Change vs.
(In millions)2Q241Q244Q233Q232Q231Q242Q23
Summary of Changes in the Components of the Allowance For Credit Losses$%$%
Allowance for loan and lease losses - beginning$787 $773 $760 $737 $715 $14 2 %$72 10 %
Charge-offs:
Commercial, financial, and industrial (C&I) *(24)(28)(31)(92)(19)4 13 (5)(28)
Commercial real estate(19)(12)(2)(5)(8)(7)(54)(11)NM
Consumer real estate(1)— (1)(1)(1)(1)NM— (46)
Credit card and other5
(5)(6)(6)(7)(5)1 16 — (1)
Total charge-offs(49)(46)(41)(104)(33)(3)(6)(16)(50)
Recoveries:
Commercial, financial, and industrial (C&I)11 3 2 5 5 9 NM 7 NM
Commercial real estate— — — — 1 — (91)(1)(99)
Consumer real estate2 1 2 2 3 1 74 — (9)
Credit card and other5
1 2 1 1 1 — (27)— 2 
Total Recoveries15 6 5 9 9 9 NM 6 62 
Provision for loan and lease losses:
Commercial, financial, and industrial (C&I) *9 34 33 96 15 (24)(72)(6)(39)
Commercial real estate59 21 6 14 16 38 NM 43 NM
Consumer real estate(1)(3)5 5 10 2 73 (11)NM
Credit card and other5
— 3 5 3 3 (2)(88)(3)(89)
Total provision for loan and lease losses:
68 54 49 118 45 14 26 23 51 
Allowance for loan and lease losses - ending$821 $787 $773 $760 $737 $34 4 %$84 11 %
Reserve for unfunded commitments - beginning$79 $83 $82 $90 $85 $(4)(5)%$(6)(7)%
Cumulative effect of change in accounting principle— — — — — — NM — NM
Acquired reserve for unfunded commitments— — — — — — NM — NM
Provision for unfunded commitments(13)(4)1 (8)5 (9)NM (18)NM
Reserve for unfunded commitments - ending$66 $79 $83 $82 $90 $(13)(17)%$(24)(27)%
Total allowance for credit losses- ending$887 $865 $856 $842 $827 $22 2 %$60 7 %
Numbers may not foot due to rounding.
•3Q23 increase driven by a single credit from a company in bankruptcy.
See footnote disclosures on page 19.
15


CONSOLIDATED ASSET QUALITY RATIOS - ALLOWANCE FOR LOAN AND LEASE LOSSES
Quarterly, Unaudited
As of
2Q241Q244Q233Q232Q23
Allowance for loans and lease losses to loans and leases
Commercial, financial, and industrial (C&I)1.03 %1.06 %1.04 %1.01 %0.98 %
Commercial real estate1.51 %1.26 %1.21 %1.19 %1.14 %
Consumer real estate1.66 %1.69 %1.71 %1.67 %1.64 %
Credit card and other5
3.26 %3.57 %3.63 %3.48 %3.79 %
Total allowance for loans and lease losses to loans and leases1.31 %1.27 %1.26 %1.23 %1.20 %
Allowance for loans and lease losses to nonperforming loans and leases
Commercial, financial, and industrial (C&I)205 %168 %184 %273 %177 %
Commercial real estate85 %115 %126 %135 %219 %
Consumer real estate161 %165 %168 %158 %154 %
Credit card and other5
1,295 %1,766 %1,202 %1,364 %1,384 %
Total allowance for loans and lease losses to nonperforming loans and leases143 %156 %167 %193 %183 %
Allowance for credit losses ratios
Total allowance for credit losses to loans and leases4
1.41 %1.40 %1.40 %1.36 %1.35 %
Total allowance for credit losses to nonperforming loans and leases4
155 %171 %185 %214 %206 %
See footnote disclosures on page 19.
16

REGIONAL BANKING
Quarterly, Unaudited 
     2Q24 Change vs.
 2Q241Q244Q233Q232Q231Q242Q23
$/bp%$/bp%
Income Statement (millions)      
Net interest income$522 $532 $548 $558 $586 $(10)(2)%$(64)(11)%
Noninterest income109 105 106 106 106 4 4 3 3 
Total revenue632 637 655 664 691 (5)(1)(59)(9)
Noninterest expense334 324 334 311 314 10 3 20 6 
Pre-provision net revenue3
298 313 321 353 377 (15)(5)(79)(21)
Provision for credit losses57 28 28 112 35 29 104 22 63
Income before income tax expense241 285 293 241 342 (44)(15)(101)(30)
Income tax expense55 67 69 56 80 (12)(18)(25)(31)
Net income$185 $219 $224 $185 $262 $(34)(16)%$(77)(29)%
Average Balances (billions)
Total loans and leases$41.0 $40.6 $40.6 $40.6 $39.7 $0.4 1 %$1.3 3 %
Interest-earning assets41.0 40.6 40.6 40.6 39.7 0.4 1 1.3 3 
Total assets43.5 43.1 43.2 43.3 42.3 0.4 1 1.2 3 
Total deposits57.5 57.8 58.6 58.0 55.2 (0.3)(1)2.3 4 
Key Metrics
Net interest margin6
5.16 %5.30 %5.39 %5.48 %5.95 %(14)bp(79)bp
Efficiency ratio 52.80 %50.83 %51.04 %46.82 %45.41 %197 bp739 bp
Loans-to-deposits ratio (period-end balances)72.05 %69.82 %68.76 %69.68 %70.22 %223 bp183 bp
Loans-to-deposits ratio (average-end balances)71.32 %70.18 %69.34 %70.03 %71.83 %114 bp(51)bp
Return on average assets (annualized)1.71 %2.04 %2.06 %1.70 %2.48 %(33)bp(77)bp
Return on allocated equity7
21.47 %25.37 %25.84 %21.30 %30.36 %(390)bp(889)bp
Financial center locations418 418 418 418 417 — 1 
Numbers may not add to total due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 19.

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.
17


SPECIALTY BANKING
Quarterly, Unaudited 
     2Q24 Change vs.
 2Q241Q244Q233Q232Q231Q242Q23
$/bp%$/bp%
Income Statement (millions)      
Net interest income$158 $153 $153 $161 $156 $5 3 %$2 1 %
Noninterest income64 72 64 49 50 (7)(10)14 27 
Total revenue222 224 217 209 206 (3)(1)15 7 
Noninterest expense103 104 101 96 95 (1)(1)8 8 
Pre-provision net revenue3
119 120 116 114 112 (1)(1)8 7 
Provision for credit losses1 23 31 2 18 (22)(98)(18)(97)
Income before income tax expense119 97 85 111 93 21 22 25 27 
Income tax expense29 24 21 27 23 5 22 6 28 
Net income$90 $74 $64 $84 $71 $16 22 %$19 27 %
Average Balances (billions)
Total loans and leases$20.7 $20.2 $20.1 $20.4 $19.8 $0.5 3 %$0.9 5 %
Interest-earning assets23.3 22.4 22.4 22.7 22.0 0.8 4 1.3 6 
Total assets24.6 23.8 23.9 24.1 23.3 0.8 3 1.3 5 
Total deposits3.9 4.0 4.2 4.1 3.8 (0.1)(3)0.1 2 
Key Metrics
Fixed income product average daily revenue (thousands)$488 $731 $463 $301 $348 $(243)(33)%$140 40 %
Net interest margin6
2.72 %2.73 %2.71 %2.81 %2.85 %(1)bp(13)bp
Efficiency ratio 46.28 %46.40 %46.60 %45.80 %45.92 %(12)bp36 bp
Loans-to-deposits ratio (period-end balances)551 %539 %524 %493 %534 %1,224 bp1,684 bp
Loans-to-deposits ratio (average-end balances)535 %506 %482 %501 %521 %2,881 bp1,330 bp
Return on average assets (annualized)1.47 %1.25 %1.06 %1.39 %1.21 %22 bp26 bp
Return on allocated equity7
16.86 %14.13 %12.41 %17.21 %15.37 %273 bp149 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 19.

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, and mortgage. 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.
18

CORPORATE
Quarterly, Unaudited
 2Q24 Change vs.
 2Q241Q244Q233Q232Q231Q242Q23
$%$%
Income Statement (millions)
Net interest income/(expense)$(51)$(60)$(85)$(113)$(111)$9 15 %$60 54 %
Noninterest income13 18 13 18 244 (5)(28)(231)(95)
Total revenues(39)(43)(72)(95)133 4 9 (172)(129)
Noninterest expense64 87 137 67 147 (23)(27)(83)(56)
Pre-provision net revenue3
(103)(130)(209)(162)(14)27 21 (89)NM
Provision for credit losses(3)(1)(9)(5)(4)(2)NM 1 17 
Income before income tax expense(100)(129)(200)(158)(10)29 23 (90)NM
Income tax expense (benefit)(29)(33)(100)(31)(7)5 15 (22)NM
Net income/(loss)$(71)$(95)$(100)$(127)$(3)$24 26 %$(68)NM
Average Balance Sheet (billions)    
Interest bearing assets$11.0 $11.8 $12.4 $13.0 $13.7 $(0.8)(7)%$(2.7)(20)%
Total assets13.6 14.4 15.2 15.9 16.7 (0.8)(5)(3.1)(18)
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 20.
5 Credit card and other includes $190 million of commercial credit card balances at June 30, 2024.
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 Share count was impacted by the repurchase of 11 million shares during 1Q24 and 14 million shares during 2Q24.


19

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
($s in millions, except per share data)2Q241Q244Q233Q232Q23
Tangible Common Equity (Non-GAAP)    
(A) Total equity (GAAP)$8,955 $9,173 $9,291 $8,794 $8,960 
Less: Noncontrolling interest (a)295 295 295 295 295 
Less: Preferred stock (a)426 520 520 520 520 
(B) Total common equity$8,234 $8,358 $8,476 $7,978 $8,144 
Less: Intangible assets (GAAP) (b)1,674 1,685 1,696 1,709 1,720 
(C) Tangible common equity (Non-GAAP)$6,560 $6,673 $6,779 $6,270 $6,424 
Tangible Assets (Non-GAAP) 
(D) Total assets (GAAP)$82,230 $81,799 $81,661 $82,533 $85,071 
Less: Intangible assets (GAAP) (b)1,674 1,685 1,696 1,709 1,720 
(E) Tangible assets (Non-GAAP)$80,556 $80,114 $79,965 $80,825 $83,351 
Period-end Shares Outstanding     
(F) Period-end shares outstanding537 549 559 559 559 
Ratios
(A)/(D) Total equity to total assets (GAAP)10.89 %11.21 %11.38 %10.65 %10.53 %
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)8.14 %8.33 %8.48 %7.76 %7.71 %
(B)/(F) Book value per common share (GAAP)$15.34 $15.23 $15.17 $14.28 $14.58 
(C)/(F) Tangible book value per common share (Non-GAAP)$12.22 $12.16 $12.13 $11.22 $11.50 
(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.


20

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
($s in millions, except per share data)2Q241Q244Q233Q232Q23
Adjusted Diluted EPS
Net income available to common shareholders ("NIAC") (GAAP)a$184 $184 $175 $129 $317 
Plus Total notable items (after-tax) (Non-GAAP) (a)$11 $12 $3 $20 $(98)
Adjusted net income available to common shareholders (Non-GAAP)b$195 $196 $178 $150 $219 
Diluted Shares (GAAP)8
c547 558 561 561 561 
Diluted EPS (GAAP)a/c$0.34 $0.33 $0.31 $0.23 $0.56 
Adjusted diluted EPS (Non-GAAP)b/c$0.36 $0.35 $0.32 $0.27 $0.39 
Adjusted Net Income ("NI") and Adjusted Return on Assets ("ROA")
Net Income ("NI") (GAAP)$204 $197 $188 $142 $329 
Plus Relevant notable items (after-tax) (Non-GAAP) (a)$4 $12 $3 $20 $(98)
Adjusted NI (Non-GAAP)$208 $209 $191 $163 $231 
NI (annualized) (GAAP)d$820 $791 $746 $565 $1,320 
Adjusted NI (annualized) (Non-GAAP)e$836 $838 $757 $646 $928 
Average assets (GAAP)f$81,721 $81,243 $82,313 $83,220 $82,304 
ROA (GAAP)d/f1.00 %0.97 %0.91 %0.68 %1.60 %
Adjusted ROA (Non-GAAP)e/f1.02 %1.03 %0.92 %0.78 %1.13 %
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$739 $739 $695 $513 $1,270 
Adjusted Net income available to common shareholders (annualized) (Non-GAAP)h$785 $787 $706 $594 $878 
Average Common Equity (GAAP)i$8,228 $8,436 $8,090 $8,163 $7,747 
Intangible Assets (GAAP) (b)1,680 1,691 1,702 1,714 1,726 
Average Tangible Common Equity (Non-GAAP)j$6,548 $6,745 $6,388 $6,448 $6,021 
ROCE (GAAP)g/i8.98 %8.76 %8.60 %6.28 %16.40 %
ROTCE (Non-GAAP)g/j11.29 %10.95 %10.89 %7.95 %21.10 %
Adjusted ROTCE (Non-GAAP)h/j11.99 %11.65 %11.05 %9.21 %14.59 %
(a)     Adjusted for those notable items relevant to the amount being adjusted, as detailed on page 8.
(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
(In millions)2Q241Q244Q233Q232Q23
Adjusted Noninterest Income as a % of Total Revenue
Noninterest income (GAAP)k$186 $194 $183 $173 $400 
Plus notable items (pretax) (GAAP) (a)— — (4)— (225)
Adjusted noninterest income (Non-GAAP)l$186 $194 $179 $173 $175 
Revenue (GAAP)m$815 $819 $800 $778 $1,031 
Taxable-equivalent adjustment4 4 4 4 4 
Revenue- Taxable-equivalent (Non-GAAP)819 823 804 782 1,035 
Plus notable items (pretax) (GAAP) (a)— — (4)— (225)
Adjusted revenue (Non-GAAP)n$819 $823 $800 $782 $810 
Securities gains/(losses) (GAAP)o$1 $— $(5)$— $— 
Noninterest income as a % of total revenue (GAAP)(k-o)/ (m-o)22.75 %23.72 %23.33 %22.23 %38.80 %
Adjusted noninterest income as a % of total revenue (Non-GAAP)l/n22.64 %23.61 %22.32 %22.11 %21.60 %
Adjusted Efficiency Ratio
Noninterest expense (GAAP)p$500 $515 $572 $474 $555 
Plus notable items (pretax) (GAAP) (a)(5)(15)(70)(10)(95)
Adjusted noninterest expense (Non-GAAP)q$495 $500 $502 $465 $461 
Revenue (GAAP)r$815 $819 $800 $778 $1,031 
Taxable-equivalent adjustment4 4 4 4 4 
Revenue- Taxable-equivalent (Non-GAAP)819 823 804 782 1,035 
Plus notable items (pretax) (GAAP) (a)— — (4)— (225)
Adjusted revenue (Non-GAAP)s$819 $823 $800 $782 $810 
Securities gains/(losses) (GAAP)t$1 $— $(5)$— $— 
Efficiency ratio (GAAP)p/ (r-t)61.44 %62.92 %71.14 %60.96 %53.89 %
Adjusted efficiency ratio (Non-GAAP)q/s60.47 %60.78 %62.84 %59.43 %56.92 %
(a)     Adjusted for those notable items relevant to the amount being adjusted, as detailed on page 8.
(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
($s in millions)
Period-endAverage
2Q241Q242Q24 vs.1Q242Q241Q242Q24 vs.1Q24
Loans excluding LMC
Total Loans (GAAP)$62,781 $61,753 $1,028 2 %$62,029 $61,152 $876 1 %
LMC (GAAP)2,9342,366568 24 %2,4401,847593 32 %
Total Loans excl. LMC (Non-GAAP)59,847 59,387 460 1 %59,589 59,305 284 — %
Total Consumer (GAAP)14,66014,416244 2 %14,54414,396148 1 %
Total Commercial excl. LMC (Non-GAAP)45,187 44,971 216 — %45,045 44,909 136 — %
Total CRE (GAAP)14,669 14,426 243 2 %14,576 14,367 209 1 %
Total C&I excl. LMC (Non-GAAP)$30,518 $30,545 $(27)— %$30,469 $30,542 $(73)— %
Numbers may not foot due to rounding.


2Q241Q244Q233Q232Q23
Allowance for credit losses to loans and leases and Allowance for credit losses to nonperforming loans and leases
Allowance for loan and lease losses (GAAP)A$821 $787 $773 $760 $737 
Reserve for unfunded commitments (GAAP)66 79 83 82 90 
Allowance for credit losses (Non-GAAP)B$887 $865 $856 $842 $827 
Loans and leases (GAAP)C$62,781 $61,753 $61,292 $61,778 $61,295 
Nonaccrual loans and leases (GAAP)D$574 $505 $462 $394 $402 
Allowance for loans and lease losses to loans and leases (GAAP)A/C1.31 %1.27 %1.26 %1.23 %1.20 %
Allowance for credit losses to loans and leases (Non-GAAP)B/C1.41 %1.40 %1.40 %1.36 %1.35 %
Allowance for loans and lease losses to nonperforming loans and leases (GAAP)A/D143 %156 %167 %193 %183 %
Allowance for credit losses to nonperforming loans and leases (Non-GAAP)B/D155 %171 %185 %214 %206 %
Numbers may not foot due to rounding.


23

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
($s in millions)
2Q241Q244Q233Q232Q23
Adjusted Pre-provision Net Revenue (PPNR)
Pre-tax income (GAAP)$260 $254 $177 $194 $425 
Plus notable items (pretax) (GAAP) (a)5 15 67 10 (130)
Adjusted Pre-tax income (non-GAAP)$265 $269 $244 $204 $295 
Plus provision expense (GAAP)55 50 50 110 50 
Adjusted Pre-provision net revenue (PPNR) (non-GAAP)$320 $319 $294 $314 $345 
Taxable-equivalent adjustment4 4 4 4 4 
Pre-provision net revenue-Taxable-equivalent (Non-GAAP)$324 $323 $298 $318 $349 
(a)     Adjusted for those notable items relevant to the amount being adjusted, as detailed on page 8.
Numbers may not foot due to rounding.
24


GLOSSARY OF TERMS
Common Equity Tier 1 Ratio: Ratio consisting of common equity adjusted for certain unrealized gains/(losses) on available-for-sale securities, less disallowed portions of goodwill, other intangibles, and deferred tax assets as well as certain other regulatory deductions divided by risk-weighted assets.
 
Fully Taxable Equivalent (“FTE”): Reflects the amount of tax-exempt income adjusted to a level that would yield the same after-tax income had that income been subject to taxation.
 
TD Transaction: The acquisition of FHN by TD contemplated by a merger agreement signed in February 2022 and terminated in May 2023.

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 excluding securities gains/losses to total revenue - taxable equivalent excluding securities gains/losses.
 
Efficiency Ratio: Ratio is noninterest expense to total revenue - taxable equivalent excluding securities gains/losses.
 
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, and mortgage. 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, creditFS Work 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