EX-99.1 2 a1q2023earningsrelease.htm 1Q2023 EARNINGS RELEASE Document





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First Horizon Corporation Reports First Quarter 2023 Net Income Available to Common Shareholders of
$243 Million, or EPS of $0.43; $259 Million, or $0.45, on an Adjusted Basis*

Pre-provision net revenue up 77% from the prior year and up 63% on an adjusted basis*

ROTCE of 17.4% and adjusted ROTCE of 18.6% with tangible book value per share of $10.89*

MEMPHIS, TN (April 18, 2023) – First Horizon Corporation (NYSE: FHN or “First Horizon”) today reported first quarter net income available to common shareholders ("NIAC") of $243 million, or earnings per share of $0.43, compared with fourth quarter 2022 NIAC of $258 million, or earnings per share of $0.45.

First quarter 2023 results were reduced by a net $16 million after-tax, or $0.03 per share, of notable items compared with a net $34 million, or $0.06 per share, decrease in fourth quarter 2022. Excluding notable items, adjusted first quarter 2023 NIAC of $259 million, or $0.45 per share, decreased from $293 million, or $0.51 per share in fourth quarter 2022.

“This quarter’s results, highlighted by our continued strong capital position, disciplined credit culture, expense discipline, and well-diversified and stable funding mix, reflect the strength and stability of our franchise,“ said Chairman, President and Chief Executive Officer Bryan Jordan. “Despite ongoing macroeconomic uncertainty, we continue to grow deep client relationships across our 12-state footprint and in our specialty businesses.”

Jordan continued “As always, I thank our associates for their continued focus on driving value for our shareholders, clients, and communities, as we have for the last 159 years.”

Notable Items
Quarterly, Unaudited ($s in millions, except per share data)1Q234Q221Q22
Summary of Notable Items:
IBKC:
Merger/acquisition expense$— $(4)$(28)
Total IBKC merger-acquisition-related items— (4)(28)
TD:
Transaction-related expense(21)(31)(9)
Total TD transaction-related items(21)(31)(9)
Total Net Merger/acquisition/transaction-related items(21)(36)(37)
Other notable items:
Gain on sale of title services business (other noninterest income)— 1 — 
Gain related to equity securities investment (other noninterest income)— — 6 
Other notable expenses— (10)— 
Total other notable items — (9)6 
Total Notable items (pre-tax)(21)(45)(32)
Total Notable items (after-tax)$(16)$(34)$(24)
EPS impact of notable items$(0.03)$(0.06)$(0.04)
Numbers may not foot due to rounding.

First quarter pre-tax net notable items include TD transaction-related costs of $21 million.

*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 21.
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First Quarter 2023 versus Fourth Quarter 2022 Highlights
•Total revenue of $859 million decreased $23 million and adjusted revenue of $863 million decreased $22 million, or 2%, primarily due to day count, seasonality and a 2 bp reduction in NIM.
•Net interest income of $688 million decreased $21 million, or 3%, as the benefit of higher loan rates and loan balances were more than offset by higher funding costs and day count.
•Noninterest income of $171 million decreased $3 million and adjusted noninterest income of $171 million decreased $2 million as higher fixed income and mortgage banking was more than offset by reductions in other noninterest income and deferred compensation.
•Noninterest expense of $478 million decreased $25 million and adjusted noninterest expense of $457 million decreased $1 million largely as an increase in associate minimum wage to $20 per hour and seasonally higher FICA taxes was offset by a reduction in production-based incentives and commissions, and deferred compensation.
•Provision expense of $50 million compared with $45 million in fourth quarter 2022 reflects the impact of a challenging macroeconomic outlook and 2% loan growth ex. LMC partially mitigated by lower net charge-offs.
•Average interest-earning assets of $72.1 billion decreased $729 million largely as a $510 million increase in loans and a $131 million increase in investment securities was more than offset by a $1.1 billion decrease in interest-bearing deposits with banks.
•Average loans increased $510 million as a 2% increase in consumer loans and a 1% increase in commercial real estate was partially offset by a $424 million decrease in loans to mortgage companies ("LMC").
•Period-end loans increased $943 million, or 2%, driven by a $562 million increase in commercial and a $382 million increase in consumer. Period-end commercial loans excluding LMC rose 2%.
•Average deposits of $62.2 billion decreased $2.7 billion, or 4%, driven by a $2.7 billion decrease in DDA and other noninterest-bearing deposits. Total deposit costs of 111 basis points increased 42 basis points.
•Allowance for credit losses ("ACL") to loans ratio increased to 1.35% from 1.33% at December 31, 2022. The ACL to nonperforming loans ratio of 189% decreased from 244% at December 31, 2022.
•Net charge-offs of $16 million decreased $10 million; nonperforming loans of $424 million increased $108 million linked quarter and the nonperforming loan ratio of 0.72% increased from 0.54% at December 31, 2022.
•ROCE of 13.3%; ROTCE of 17.4%; Adjusted ROTCE of 18.6%; CET 1 ratio of 10.4%; and total capital ratio of 13.6%.
•Tangible book value per share of $10.89 at March 31, 2023 compared with $10.23 at December 31, 2022 and reflected a $0.50 increase tied to adjusted NIAC and a $0.29 increase tied to MTM valuation adjustments on AFS securities and cash flow hedges.
Strategic Update
Pending Acquisition by TD
•As announced on March 1st, TD has informed First Horizon that TD does not expect that the necessary regulatory approvals will be received in time to complete the pending transaction by May 27, 2023 (the current outside date), and that TD cannot provide a new projected closing date.
•No further updates at this time.


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SUMMARY RESULTS
Quarterly, Unaudited
1Q23 Change vs.
($s in millions, except per share and balance sheet data)1Q234Q221Q224Q221Q22
$/bp%$/bp%
Income Statement
Interest income - taxable equivalent1
$923 $860 $513 $63 7 %$410 80 %
Interest expense- taxable equivalent1
232 148 31 84 57 201 NM
Net interest income- taxable equivalent691 712 482 (21)(3)209 43 
Less: Taxable-equivalent adjustment4 4 3 — — 1 33 
Net interest income688 709 479 (21)(3)209 44 
Noninterest income171 174 229 (3)(2)(58)(25)
      Total revenue859 882 707 (23)(3)152 21 
Noninterest expense478 503 493 (25)(5)(15)(3)
Pre-provision net revenue3
381 379 215 2 1 166 77 
Provision for credit losses50 45 (40)5 11 90 NM
Income before income taxes331 334 255 (3)(1)76 30 
Provision for income taxes75 64 57 11 17 18 32 
Net income256 270 198 (14)(5)58 29 
Net income attributable to noncontrolling interest4 4 3 — — 1 33 
Net income attributable to controlling interest251 266 195 (15)(6)56 29 
Preferred stock dividends8 8 8 — — — — 
Net income available to common shareholders$243 $258 $187 $(15)(6)%$56 30 %
Adjusted net income4
$271 $304 $222 $(33)(11)%$49 22 %
Adjusted net income available to common shareholders4
$259 $293 $211 $(34)(12)%$48 23 %
Common stock information
EPS$0.43 $0.45 $0.34 $(0.02)(4)%$0.09 26 %
Adjusted EPS4
$0.45 $0.51 $0.38 $(0.06)(12)%$0.07 18 %
Diluted shares8
572 572 550 — — %22 4 %
Key performance metrics
Net interest margin3.87 %3.89 %2.37 %(2)bp150 bp
Efficiency ratio55.65 57.07 69.66 (142)(1,401)
Adjusted efficiency ratio4
52.95 51.70 64.64 125 (1,169)
Effective income tax rate22.71 19.19 22.41 352 30 
Return on average assets1.32 1.35 0.90 (3)42 
Adjusted return on average assets4
1.40 1.52 1.02 (12)38 
Return on average common equity (“ROCE")13.3 14.4 9.9 (108)342 
Return on average tangible common equity (“ROTCE”)4
17.4 19.1 13.0 (171)445 
Adjusted ROTCE4
18.6 21.7 14.7 (313)387 
Noninterest income as a % of total revenue19.94 19.68 32.31 26 (1,237)
Adjusted noninterest income as a % of total revenue4
19.85 %19.55 %31.63 %30 bp(1,178)bp
Balance Sheet (billions)
Average loans$58.1 $57.6 $54.1 $0.5 1 %$4.0 7 %
Average deposits62.2 64.9 74.2 (2.7)(4)(11.9)(16)
Average assets78.8 79.5 88.6 (0.7)(1)(9.7)(11)
Average common equity$7.4 $7.1 $7.6 $0.3 4 %$(0.2)(3)%
Asset Quality Highlights
Allowance for credit losses to loans and leases1.35 %1.33 %1.25 %2 bp10 bp
Net charge-off ratio0.11 0.18 0.07 (7)4 
Nonperforming loan and leases ratio0.72 %0.54 %0.60 %17 bp11 bp
Capital Ratio Highlights (current quarter is an estimate)
Common Equity Tier 110.4 %10.2 %10.0 %19 bp39 bp
Tier 112.1 11.9 11.8 18 26 
Total Capital13.6 13.3 13.2 27 42 
Tier 1 leverage10.7 %10.4 %8.8 %33 bp188 bp
Numbers may not foot due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 20.


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First Quarter 2023 versus Fourth Quarter 2022
Net interest income
Net interest income of $688 million decreased $21 million as the benefit of higher rates and loan balances was more than offset by higher funding costs and day count. Net interest margin of 3.87% decreased 2 basis points largely as the benefit of higher rates and loan growth was more than offset by the impact of higher funding costs and day count.

Noninterest income
Noninterest income of $171 million decreased $3 million and included a $1 million decrease in the benefit of notable items. Adjusted noninterest income of $171 million decreased $2 million as higher fixed income and mortgage banking was more than offset by reductions in other noninterest income and deferred compensation. Fixed income average daily revenue of $437 thousand increased 8% compared with $403 thousand in fourth quarter 2022, despite continuing challenging market conditions.

Noninterest expense
Noninterest expense of $478 million decreased $25 million and included a $25 million decrease in notable items. Adjusted noninterest expense of $457 million decreased $1 million largely as higher salaries and employee benefits was offset by a reduction in production-based incentives and commissions and deferred compensation.

Loans and leases
Average loan and lease balances of $58.1 billion increased $510 million largely reflecting a 2% increase in consumer. Commercial loan growth of $191 million was driven by a $194 million increase in commercial real estate. Consumer loan growth increased $319 million compared to the prior quarter, driven by a $352 million increase in consumer real estate. Results reflect a $424 million reduction in loans to mortgage companies ("LMC"). Loan balances excluding LMC increased $934 million compared to the prior quarter, driven by a $615 million increase in commercial.

Period-end loans and leases of $59.0 billion increased $943 million from fourth quarter 2022, reflecting a 1% increase in commercial and a 3% increase in consumer. Before the impact of LMC, period-end loans increased $1.2 billion, or 2%, driven by a $779 million increase in all other commercial loans.

Deposits
Average deposits of $62.2 billion decreased $2.7 billion, or 4%. Period-end deposits of $61.4 billion decreased $2.0 billion reflecting a $2.3 billion decrease in noninterest-bearing partially offset by a $0.3 billion increase in interest-bearing. Total deposit costs of 111 basis points increased 42 basis points with a 59 basis point increase in interest-bearing deposit costs.

Asset quality
Provision expense of $50 million compared with $45 million in fourth quarter 2022 reflects the impact of a challenging macroeconomic outlook partially offset by lower net charge-offs.

Net charge-offs of $16 million, or 11 basis points, compared with $26 million, or 18 basis points, in fourth quarter 2022.

Nonperforming loans of $424 million increased $108 million. First quarter 2023 ACL to nonperforming loans coverage ratio of 189% compared with 244% in fourth quarter 2022.

The ACL to loans ratio increased to 1.35% from 1.33% in the fourth quarter 2022.



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Capital
CET1 ratio of 10.4% in first quarter 2023 compared with 10.2% in fourth quarter 2022. Total capital ratio of 13.6% vs. 13.3% in fourth quarter 2022.

Income taxes
The first quarter 2023 effective tax rate of 22.7% compared with 19.2% in fourth quarter 2022. On an adjusted basis, the effective tax rate of 22.9% in the first quarter 2023 increased from 19.8% in fourth 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 21.

First Horizon Corp. (NYSE: FHN), with $80.7 billion in assets as of March 31, 2023, is a leading regional financial services company, dedicated to helping our clients, communities and associates unlock their full potential with capital and counsel. Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates in 12 states across the southern U.S. The Company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services. First Horizon has been recognized as one of the nation's best employers by Fortune and Forbes magazines and a Top 10 Most Reputable U.S. Bank. More information is available at www.FirstHorizon.com.

Contact: Investor Relations - investorrelations@firsthorizon.com
Media Relations - Beth.Ardoin@firsthorizon.com
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CONSOLIDATED INCOME STATEMENT
Quarterly, Unaudited
     1Q23 Change vs.
($s in millions, except per share data)1Q234Q223Q222Q221Q224Q221Q22
$ %$ %
Interest income - taxable equivalent1
$923 $860 $737 $586 $513 $63 7 %$410 80 %
Interest expense- taxable equivalent1
232 148 71 41 31 84 57 201 NM
Net interest income- taxable equivalent691 712 666 545 482 (21)(3)209 43 
Less: Taxable-equivalent adjustment4 4 4 3 3 — — 1 33 
Net interest income688 709 662 542 479 (21)(3)209 44 
Noninterest income:
Fixed income39 35 46 51 73 4 11 (34)(47)
Mortgage banking and title5 4 9 34 22 1 25 (17)(77)
Brokerage, trust, and insurance34 33 34 36 37 1 3 (3)(8)
Service charges and fees55 56 56 57 57 (1)(2)(2)(4)
Card and digital banking fees19 20 21 23 20 (1)(5)(1)(5)
Deferred compensation income3 7 (3)(17)(4)(4)(57)7 NM
Other noninterest income15 20 50 16 24 (5)(25)(9)(38)
Total noninterest income171 174 213 201 229 (3)(2)(58)(25)
Total revenue859 882 875 743 707 (23)(3)152 21 
Noninterest expense:
Personnel expense:
Salaries and benefits188 178 186 190 190 10 6 (2)(1)
Incentives and commissions80 97 92 93 94 (17)(18)(14)(15)
Deferred compensation expense3 7 (2)(18)(5)(4)(57)8 NM
Total personnel expense271 281 275 265 280 (10)(4)(9)(3)
Occupancy and equipment2
70 71 71 73 72 (1)(1)(2)(3)
Outside services66 70 66 70 84 (4)(6)(18)(21)
Amortization of intangible assets12 13 13 13 13 (1)(8)(1)(8)
Other noninterest expense59 69 44 68 44 (10)(14)15 34 
Total noninterest expense478 503 468 489 493 (25)(5)(15)(3)
Pre-provision net revenue3
381 379 406 255 215 2 1 166 77 
Provision for credit losses50 45 60 30 (40)5 11 90 NM
Income before income taxes331 334 346 225 255 (3)(1)76 30 
Provision for income taxes75 64 78 48 57 11 17 18 32 
Net income256 270 268 177 198 (14)(5)58 29 
Net income attributable to noncontrolling interest4 4 3 3 3 — — 1 33 
Net income attributable to controlling interest251 266 265 174 195 (15)(6)56 29 
Preferred stock dividends8 8 8 8 8 — — — — 
Net income available to common shareholders$243 $258 $257 $166 $187 $(15)(6)%$56 30 %
Common Share Data
EPS$0.45 $0.48 $0.48 $0.31 $0.35 $(0.03)(6)%$0.10 28 %
Basic shares537 536 536 535 533 1 — 4 1 
Diluted EPS$0.43 $0.45 $0.45 $0.29 $0.34 $(0.02)(4)$0.09 26 
Diluted shares8
572 572 570 569 550 — — %22 4 %
Effective tax rate22.7 %19.2 %22.6 %21.3 %22.4 %
Numbers may not foot due to rounding. See footnote disclosures on page 20.
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ADJUSTED5 FINANCIAL DATA - SEE NOTABLE ITEMS ON PAGE 9
Quarterly, Unaudited
     1Q23 Change vs.
($s in millions, except per share data)1Q234Q223Q222Q221Q224Q221Q22
$%$%
Net interest income (FTE)1
$691 $712 $666 $545 $482 $(21)(3)%$209 43 %
Adjusted noninterest income:
Fixed income39 35 46 51 73 4 11 (34)(47)
Adjusted mortgage banking and title5 4 9 22 22 1 25 (17)(77)
Brokerage, trust, and insurance34 33 34 36 37 1 3 (3)(8)
Service charges and fees55 56 56 57 57 (1)(2)(2)(4)
Card and digital banking fees19 20 21 23 20 (1)(5)(1)(5)
Deferred compensation income3 7 (3)(17)(4)(4)(57)7 NM
Adjusted other noninterest income15 20 18 15 18 (5)(25)(3)(17)
Adjusted total noninterest income$171 $173 $181 $188 $223 $(2)(1)%$(52)(23)%
Total revenue (FTE)1
$863 $885 $847 $733 $704 $(22)(2)%$159 23 %
Adjusted noninterest expense:
Adjusted personnel expense:
Adjusted salaries and benefits$188 $178 $185 $190 $188 $10 6 %$— — %
Adjusted Incentives and commissions64 70 68 71 92 (6)(9)(28)(30)
Adjusted deferred compensation expense3 7 (2)(18)(5)(4)(57)8 NM
Adjusted total personnel expense255 254 251 244 275 1 — (20)(7)
Adjusted occupancy and equipment2
70 71 70 72 72 (1)(1)(2)(3)
Adjusted outside services63 64 64 61 59 (1)(2)4 7 
Adjusted amortization of intangible assets12 12 12 12 12 — — — — 
Adjusted other noninterest expense58 58 48 50 37 — — 21 57 
Adjusted total noninterest expense$457 $458 $444 $438 $455 $(1)— %$2 — %
Adjusted pre-provision net revenue3
$406 $428 $403 $295 $249 $(22)(5)%$157 63 %
Provision for credit losses$50 $45 $60 $30 $(40)$5 11 %$90 NM
Adjusted net income available to common shareholders$259 $293 $252 $195 $211 $(34)(12)%$48 23 %
Adjusted Common Share Data
Adjusted diluted EPS$0.45 $0.51 $0.44 $0.34 $0.38 $(0.06)(12)%$0.07 18 %
Diluted shares8
572 572 570 569 550 — — %22 4 %
Adjusted effective tax rate22.9 %19.8 %22.4 %21.7 %22.5 %
Adjusted ROTCE18.6 %21.7 %17.9 %14.2 %14.7 %
Adjusted efficiency ratio53.0 %51.7 %52.4 %59.8 %64.6 %
Numbers may not foot due to rounding.
See footnote disclosures on page 20.

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NOTABLE ITEMS
Quarterly, Unaudited
(In millions)1Q234Q223Q222Q221Q22
Summary of Notable Items:
Gain on sale of title services business$— $1 $21 $— $— 
Gain related to equity securities investments— — 10 — 6 
Gain on sale of mortgage servicing rights— — — 12 — 
IBKC merger/acquisition expense— (4)(3)(13)(28)
TD transaction-related expense (21)(31)(21)(25)(9)
Other notable expenses*— (10)— (12)— 
Total notable items(21)(45)7 (38)(32)
EPS impact of notable items$(0.03)$(0.06)$0.01 $(0.05)$(0.04)
Numbers may not foot due to rounding
* 4Q22 and 2Q22 includes $10 million and $12 million, respectively of Visa derivative valuation expense.



IMPACT OF NOTABLE ITEMS:
Quarterly, Unaudited
     
(In millions)1Q234Q223Q222Q221Q22
Impacts of Notable Items:
Noninterest income:
Mortgage banking and title$— $— $— $(12)$— 
Other noninterest income— (1)(32)— (6)
Total noninterest income$— $(1)$(32)$(13)$(6)
Noninterest expense:
Personnel expenses:
Salaries and benefits$— $— $— $1 $(2)
Incentives and commissions(16)(27)(24)(22)(2)
Deferred compensation expense— — — — — 
Total personnel expenses(16)(27)(25)(21)(4)
Occupancy and equipment2
— — (1)(1)— 
Outside services(3)(6)(2)(9)(25)
Amortization of intangible assets— (1)(1)(1)(1)
Other noninterest expense(2)(11)4 (18)(7)
Total noninterest expense$(21)$(46)$(25)$(50)$(37)
Income before income taxes$21 $45 $(7)$38 $32 
Provision for income taxes6 11 (2)9 7 
Net income/(loss) available to common shareholders$16 $34 $(5)$29 $24 
Numbers may not foot due to rounding

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FINANCIAL RATIOS
Quarterly, Unaudited
     1Q23 Change vs.
1Q234Q223Q222Q221Q224Q221Q22
FINANCIAL RATIOS$/bp%$/bp%
Net interest margin3.87 %3.89 %3.49 %2.74 %2.37 %(2)bp150 bp
Return on average assets1.32 %1.35 %1.29 %0.82 %0.90 %(3)42 
Adjusted return on average assets4
1.40 %1.52 %1.27 %0.95 %1.02 %(12)38 
Return on average common equity (“ROCE”)13.34 %14.42 %13.85 %9.12 %9.92 %(108)342 
Return on average tangible common equity (“ROTCE”)4
17.43 %19.14 %18.23 %12.07 %12.98 %(171)445 
Adjusted ROTCE4
18.55 %21.68 %17.89 %14.15 %14.68 %(313)387 
Noninterest income as a % of total revenue19.94 %19.68 %24.30 %27.06 %32.31 %26 (1,237)
Adjusted noninterest income as a % of total revenue4
19.85 %19.55 %21.37 %25.68 %31.63 %30 (1,178)
Efficiency ratio55.65 %57.07 %53.56 %65.76 %69.66 %(142)(1,401)
Adjusted efficiency ratio4
52.95 %51.70 %52.42 %59.79 %64.64 %125 (1,169)
CAPITAL DATA
CET1 capital ratio*
10.4 %10.2 %9.9 %9.8 %10.0 %19 bp39 bp
Tier 1 capital ratio*12.1 %11.9 %11.7 %11.6 %11.8 %18 bp26 bp
Total capital ratio*13.6 %13.3 %13.1 %13.0 %13.2 %27 bp42 bp
Tier 1 leverage ratio*10.7 %10.4 %9.8 %9.1 %8.8 %33 bp188 bp
Risk-weighted assets (“RWA”) (billions)$69.5 $69.2 $68.6 $67.3 $65.0 $— 1 %$4 7 %
Total equity to total assets 11.02 %10.83 %10.32 %10.04 %9.81 %19 bp121 bp
Tangible common equity/tangible assets (“TCE/TA”)4
7.41 %7.12 %6.64 %6.55 %6.44 %29 bp97 bp
Period-end shares outstanding (millions)538 537 537 536 535 1 — %3 1 %
Cash dividends declared per common share$0.15 $0.15 $0.15 $0.15 $0.15 $— — %$— — %
Book value per common share$14.11 $13.48 $12.99 $13.50 $13.82 $0.63 5 %$0.29 2 %
Tangible book value per common share4
$10.89 $10.23 $9.72 $10.18 $10.46 $0.66 6 %$0.43 4 %
SELECTED BALANCE SHEET DATA
Loans-to-deposit ratio (period-end balances)96.10 %91.51 %86.88 %80.13 %74.23 %459 bp2,187 bp
Loans-to-deposit ratio (average balances)93.33 %88.73 %82.99 %77.25 %72.93 %460 bp2,040 bp
Full-time equivalent associates7,282 7,477 7,569 7,627 7,900 (195)(3)%(618)(8)%
Certain previously reported amounts have been reclassified to agree with current presentation.
*Current quarter is an estimate.
See footnote disclosures on page 20.
10

CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited 
     1Q23 Change vs.
(In millions)1Q234Q223Q222Q221Q224Q221Q22
$%$%
Assets:      
Loans and leases:
Commercial, financial, and industrial (C&I)$32,172 $31,780 $31,620 $31,276 $30,798 $392 1 %$1,374 4 %
Commercial real estate13,397 13,228 13,021 12,942 12,487 169 1 911 7 
Total Commercial45,570 45,008 44,641 44,218 43,285 562 1 2,285 5 
Consumer real estate12,668 12,253 11,864 11,441 10,874 415 3 1,794 17 
Credit card and other5
807 840 849 870 854 (33)(4)(46)(5)
Total Consumer13,475 13,093 12,712 12,311 11,727 382 3 1,748 15 
Loans and leases, net of unearned income59,045 58,101 57,354 56,529 55,012 943 2 4,032 7 
Loans held for sale650 590 680 870 1,014 60 10 (364)(36)
Investment securities10,317 10,207 10,103 9,628 9,943 109 1 373 4 
Trading securities1,122 1,375 1,421 1,392 1,823 (253)(18)(701)(38)
Interest-bearing deposits with banks2,488 1,384 3,241 9,475 13,548 1,103 80 (11,061)(82)
Federal funds sold and securities purchased under agreements to resell309 482 690 712 640 (173)(36)(331)(52)
Total interest earning assets73,929 72,139 73,489 78,606 81,980 1,790 2 (8,051)(10)
Cash and due from banks987 1,061 1,193 1,133 1,225 (74)(7)(238)(19)
Goodwill and other intangible assets, net1,732 1,744 1,757 1,782 1,795 (12)(1)(63)(4)
Premises and equipment, net603 612 622 636 669 (9)(2)(66)(10)
Allowance for loan and lease losses(715)(685)(664)(624)(622)(30)(4)(93)(15)
Other assets4,193 4,082 3,903 3,598 3,614 112 3 580 16 
Total assets$80,729 $78,953 $80,299 $85,132 $88,660 $1,776 2 %$(7,931)(9)%
Liabilities and Shareholders' Equity:
Deposits:
Savings$21,346 $21,971 $22,800 $24,376 $25,772 $(625)(3)%$(4,426)(17)%
Time deposits3,777 2,887 2,671 2,888 3,165 890 31 612 19 
Other interest-bearing deposits15,184 15,165 14,730 16,172 17,126 18 — (1,942)(11)
Total interest-bearing deposits40,306 40,023 40,202 43,436 46,063 283 1 (5,756)(12)
Trading liabilities144 335 383 394 513 (191)(57)(369)(72)
Short-term borrowings6,484 2,506 1,416 1,953 1,719 3,979 NM 4,765 NM
Term borrowings1,605 1,597 1,597 1,599 1,591 9 1 14 1 
Total interest-bearing liabilities48,540 44,461 43,598 47,382 49,885 4,079 9 (1,345)(3)
Noninterest-bearing deposits21,134 23,466 25,813 27,114 28,052 (2,332)(10)(6,918)(25)
Other liabilities2,161 2,480 2,605 2,085 2,027 (319)(13)134 7 
Total liabilities71,835 70,406 72,016 76,581 79,964 1,428 2 (8,129)(10)
Shareholders' Equity:
Preferred stock1,014 1,014 1,014 1,014 1,014 — — — — 
Common stock336 336 335 335 334 — — 2 1 
Capital surplus4,863 4,840 4,812 4,791 4,769 23 — 95 2 
Retained earnings3,595 3,430 3,254 3,079 2,996 165 5 599 20 
Accumulated other comprehensive loss, net(1,208)(1,367)(1,427)(963)(711)159 12 (497)(70)
Combined shareholders' equity8,599 8,251 7,987 8,255 8,400 348 4 199 2 
Noncontrolling interest295 295 295 295 295 — — — — 
Total shareholders' equity8,895 8,547 8,283 8,551 8,696 348 4 199 2 
Total liabilities and shareholders' equity$80,729 $78,953 $80,299 $85,132 $88,660 $1,776 2 %$(7,931)(9)%
Memo:
Total Deposits$61,440 $63,489 $66,014 $70,550 $74,114 $(2,049)(3)%$(12,674)(17)%
Unfunded Loan Commitments:
Commercial$21,806 $22,833 $23,706 $23,251 $21,813 $(1,027)(4)%$(7)— %
Consumer$4,404 $4,329 $4,248 $3,972 $3,882 $75 2 %$522 13 %
Numbers may not foot due to rounding. See footnote disclosures on page 20.
11

CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited 
     1Q23 Change vs.
(In millions)1Q234Q223Q222Q221Q224Q221Q22
$%$%
Assets:      
Loans and leases:      
Commercial, financial, and industrial (C&I)$31,558 $31,562 $31,120 $30,963 $30,215 $(4)— %$1,343 4 %
Commercial real estate13,290 13,095 12,926 12,626 12,229 194 1 1,060 9 
Total Commercial44,848 44,657 44,046 43,589 42,445 191 — 2,403 6 
Consumer real estate12,401 12,049 11,633 11,120 10,769 352 3 1,632 15 
Credit card and other5
825 858 864 867 869 (33)(4)(43)(5)
Total Consumer13,226 12,907 12,496 11,987 11,638 319 2 1,588 14 
Loans and leases, net of unearned income58,074 57,564 56,543 55,576 54,082 510 1 3,991 7 
Loans held-for-sale596 597 761 1,027 1,156 (1)— (560)(48)
Investment securities10,263 10,132 10,315 9,781 9,668 131 1 595 6 
Trading securities1,284 1,311 1,342 1,509 1,594 (28)(2)(311)(19)
Interest-bearing deposits with banks1,468 2,618 6,341 10,989 14,902 (1,150)(44)(13,433)(90)
Federal funds sold and securities purchased under agreements to resell392 583 661 857 753 (191)(33)(361)(48)
Total interest earning assets72,076 72,805 75,963 79,739 82,155 (729)(1)(10,078)(12)
Cash and due from banks1,035 1,118 1,246 1,281 1,226 (82)(7)(191)(16)
Goodwill and other intangibles assets, net1,738 1,750 1,767 1,789 1,802 (12)(1)(64)(4)
Premises and equipment, net607 616 629 645 655 (9)(1)(47)(7)
Allowances for loan and lease losses(692)(675)(639)(621)(658)(17)(3)(35)(5)
Other assets4,076 3,907 3,585 3,493 3,407 169 4 668 20 
Total assets$78,841 $79,521 $82,551 $86,326 $88,587 $(680)(1)%$(9,746)(11)%
Liabilities and shareholders' equity:
Deposits:
Savings$21,824 $22,477 $23,569 $24,841 $26,330 $(653)(3)%$(4,506)(17)%
Time deposits3,336 2,720 2,759 3,040 3,343 617 23 (7)— 
Other interest-bearing deposits14,790 14,658 15,102 16,273 16,558 132 1 (1,767)(11)
Total interest-bearing deposits39,950 39,855 41,431 44,154 46,230 95 — (6,280)(14)
Trading liabilities324 353 372 585 614 (29)(8)(289)(47)
Short-term borrowings3,695 1,821 1,711 1,710 1,995 1,874 103 1,700 85 
Term borrowings1,602 1,597 1,598 1,597 1,591 5 — 11 1 
Total interest-bearing liabilities45,572 43,626 45,112 48,046 50,430 1,946 4 (4,858)(10)
Noninterest-bearing deposits22,274 25,021 26,701 27,791 27,926 (2,747)(11)(5,652)(20)
Other liabilities2,289 2,459 2,068 1,875 1,613 (171)(7)675 42 
Total liabilities70,134 71,106 73,882 77,712 79,969 (972)(1)(9,834)(12)
Shareholders' Equity:
Preferred stock1,014 1,014 1,014 1,014 695 — — 318 46 
Common stock 336 336 335 335 334 — — 2 1 
Capital surplus4,851 4,826 4,802 4,778 4,753 25 1 98 2 
Retained earnings3,518 3,358 3,175 3,051 2,938 160 5 579 20 
Accumulated other comprehensive loss, net(1,307)(1,414)(953)(859)(398)106 8 (910)NM
Combined shareholders' equity8,411 8,119 8,373 8,318 8,323 292 4 88 1 
Noncontrolling interest295 295 295 295 295 — — — — 
Total shareholders' equity8,707 8,415 8,669 8,614 8,619 292 3 88 1 
Total liabilities and shareholders' equity$78,841 $79,521 $82,551 $86,326 $88,587 $(680)(1)%$(9,746)(11)%
Memo:
Total Deposits$62,224 $64,876 $68,133 $71,945 $74,156 $(2,652)(4)%$(11,932)(16)%
Numbers may not foot due to rounding. See footnote disclosures on page 20.
12

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCE SHEET: YIELDS AND RATES
Quarterly, Unaudited 
   1Q23 Change vs.
1Q234Q223Q222Q221Q224Q221Q22
(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$668 6.04 %$607 5.40 %$496 4.47 %$382 3.52 %$339 3.24 %$61 10 %$329 97 %
Consumer141 4.24 134 4.14 124 3.94 112 3.74 108 3.71 7 5 33 31 
Loans and leases, net of unearned income809 5.63 742 5.12 619 4.35 494 3.57 447 3.34 67 9 362 81 
Loans held-for-sale11 7.08 9 6.34 9 4.91 10 3.89 10 3.51 2 22 1 10 
Investment securities63 2.45 61 2.41 55 2.14 46 1.87 38 1.59 2 3 25 66 
Trading securities20 6.21 19 5.79 15 4.55 13 3.43 11 2.75 1 5 9 82 
Interest-bearing deposits with banks17 4.60 24 3.61 34 2.15 22 0.79 7 0.19 (7)(29)10 143 
Federal funds sold and securities purchased under agreements4 4.35 5 3.48 2 2.04 1 0.66 — (0.04)(1)(20)4 NM
Interest income$923 5.17 %$860 4.70 %$737 3.86 %$586 2.95 %$513 2.52 %$63 7 %$410 80 %
Interest bearing liabilities/Interest expense:
Interest-bearing deposits:
Savings$96 1.79 %$67 1.19 %$18 0.31 %$5 0.08 %$3 0.05 %$29 43 %$93 NM
Time deposits16 1.96 6 0.90 2 0.50 4 0.50 4 0.51 10 NM 12 NM
Other interest-bearing deposits58 1.59 39 1.05 21 0.56 9 0.22 4 0.09 19 49 54 NM
Total interest-bearing deposits171 1.73 112 1.12 42 0.41 18 0.16 11 0.10 59 53 160 NM
Trading liabilities3 3.83 3 3.59 3 3.03 4 2.52 3 1.69 — — — — 
Short-term borrowings38 4.16 13 2.85 7 2.22 2 0.58 1 0.15 25 NM 37 NM
Term borrowings20 4.98 19 4.81 18 4.57 17 4.38 17 4.29 1 5 3 18 
Interest expense232 2.06 148 1.35 71 0.63 41 0.34 31 0.25 84 57 201 NM
Net interest income - tax equivalent basis691 3.11 712 3.35 666 3.23 545 2.61 482 2.27 (21)(3)209 43 
Fully taxable equivalent adjustment(4)0.76 (4)0.54 (4)0.26 (3)0.13 (3)0.10 — — (1)(33)
Net interest income$688 3.87 %$709 3.89 %$662 3.49 %$542 2.74 %$479 2.37 %$(21)(3)%$209 44 %
Memo:
Total loan yield5.63 %5.12 %4.35 %3.57 %3.34 %
Total deposit cost1.11 %0.69 %0.25 %0.10 %0.06 %
Total funding cost1.38 %0.85 %0.39 %0.22 %0.16 %
Net interest income and yields are adjusted to a fully taxable equivalent (“FTE”) basis assuming a statutory federal income tax of 21 percent and, where applicable, state income taxes.
Earning assets yields are expressed net of unearned income.
Loan yields include loan fees, cash basis interest income, and loans on nonaccrual status.
Numbers may not foot due to rounding.
See footnote disclosures on page 20.
13

CONSOLIDATED NONPERFORMING LOANS AND LEASES ("NPL")
Quarterly, Unaudited 
As of 1Q23 change vs.
(In millions, except ratio data)1Q234Q223Q222Q221Q224Q221Q22
$%$%
Nonperforming loans and leases
Commercial, financial, and industrial (C&I)$204 $153 $116 $129 $153 $51 34 %$51 33 %
Commercial real estate63 9 10 11 12 54 NM 51 NM
Consumer real estate155 152 163 159 165 3 2 (10)(6)
Credit card and other2 2 3 3 3 — (6)(1)(20)
Total nonperforming loans and leases$424 $316 $292 $301 $332 $108 34 %$92 28 %
Asset Quality Ratio
Nonperforming loans and leases to loans and leases
Commercial, financial, and industrial (C&I)0.63 %0.48 %0.37 %0.41 %0.50 %
Commercial real estate0.47 0.07 0.08 0.08 0.09 
Consumer real estate1.22 1.24 1.37 1.39 1.52 
Credit card and other0.27 0.27 0.31 0.29 0.32 
Total nonperforming loans and leases to loans and leases0.72 %0.54 %0.51 %0.53 %0.60 %
Numbers may not foot due to rounding.



CONSOLIDATED LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING
Quarterly, Unaudited
As of1Q23 change vs.
(In millions)1Q234Q223Q222Q221Q224Q221Q22
$%$%
Loans and leases 90 days or more past due and accruing
Commercial, financial, and industrial (C&I)$— $11 $1 $1 $6 $(11)(97)%$(5)(93)%
Commercial real estate— — — — — — NM — NM
Consumer real estate7 18 17 14 14 (11)(63)(7)(52)
Credit card and other5 3 6 3 3 1 33 2 60 
Total loans and leases 90 days or more past due and accruing$12 $33 $24 $17 $23 $(21)(65)%$(11)(49)%
Numbers may not foot due to rounding.
14


CONSOLIDATED NET CHARGE-OFFS (RECOVERIES)
Quarterly, Unaudited
As of1Q23 change vs.
(In millions, except ratio data)1Q234Q223Q222Q221Q224Q221Q22
Charge-off, Recoveries and Related Ratios$%$%
Gross Charge-offs
Commercial, financial, and industrial (C&I)$14 $24 $13 $12 $13 $(10)(41)%$1 8 %
Commercial real estate2 — 1 — — 2 NM 2 NM
Consumer real estate1 1 1 2 1 — (22)— (6)
Credit card and other5 7 7 7 5 (2)(27)— 8 
Total gross charge-offs$22 $32 $21 $21 $19 $(10)(32)%$3 18 %
Gross Recoveries
Commercial, financial, and industrial (C&I)$(2)$(3)$(2)$(1)$(3)$— 14 %$1 23 %
Commercial real estate— — — (1)— — (33)— (13)
Consumer real estate(2)(2)(6)(6)(5)— 7 3 53 
Credit card and other(1)(1)(1)(1)(1)— (14)— (51)
Total gross recoveries$(6)$(6)$(9)$(9)$(9)$— 5 %$3 31 %
Net Charge-offs (Recoveries)
Commercial, financial, and industrial (C&I)$12 $21 $11 $11 $10 $(10)(45)%$2 18 %
Commercial real estate2 — — (1)— 2 NM 2 NM
Consumer real estate(2)(2)(5)(3)(4)— (2)3 62 
Credit card and other4 6 5 5 4 (2)(34)— (1)
Total net charge-offs$16 $26 $12 $12 $10 $(10)(38)%$6 64 %
Annualized Net Charge-off (Recovery) Rates
Commercial, financial, and industrial (C&I)0.15 %0.27 %0.14 %0.14 %0.13 %
Commercial real estate0.05 — 0.01 (0.03)(0.01)
Consumer real estate(0.05)(0.05)(0.17)(0.12)(0.15)
Credit card and other1.93 2.76 2.46 2.49 1.85 
Total loans and leases0.11 %0.18 %0.08 %0.09 %0.07 %
Numbers may not foot due to rounding.
15


CONSOLIDATED ALLOWANCE FOR LOAN AND LEASE LOSSES AND RESERVE FOR UNFUNDED COMMITMENTS
Quarterly, Unaudited
As of1Q23 Change vs.
(In millions)1Q234Q223Q222Q221Q224Q221Q22
Summary of Changes in the Components of the Allowance For Credit Losses$%$%
Allowance for loan and lease losses - beginning$685 $664 $624 $622 $670 $21 3 %$15 2 %
Cumulative effect of change in accounting principle:
Commercial, financial, and industrial (C&I)1 — — — — 1 NM 1 NM
Commercial real estate— — — — — — NM — NM
Consumer real estate(7)— — — — (7)NM (7)NM
Credit card and other— — — — — — NM — NM
Total cumulative effect of change in accounting principles(6)— — — — (6)NM (6)NM
Allowance for loan and lease losses - beginning, adjusted$679 $664 $624 $622 $670 $15 2 %$9 1 %
Charge-offs:
Commercial, financial, and industrial (C&I)(14)(24)(13)(12)(13)10 41 (1)(8)
Commercial real estate(2)— (1)— — (2)NM (2)NM
Consumer real estate(1)(1)(1)(2)(1)— 22 — 6 
Credit card and other(5)(7)(7)(7)(5)2 27 — (8)
Total charge-offs(22)(32)(21)(21)(19)10 31 (3)(18)
Recoveries:
Commercial, financial, and industrial (C&I)2 3 2 1 3 — (14)(1)(22)
Commercial real estate— — — 1 — — 33 — 13 
Consumer real estate2 2 6 6 5 — (7)(3)(54)
Credit card and other1 1 1 1 1 — 14 — 51 
Total Recoveries6 6 9 9 9 — 2 (3)(32)
Provision for loan and lease losses:
Commercial, financial, and industrial (C&I)27 35 32 (2)(36)(8)(22)63 NM
Commercial real estate6 (2)8 (12)(3)8 NM 9 NM
Consumer real estate15 5 5 16 (3)11 NM 18 NM
Credit card and other4 9 7 12 4 (5)(57)— (7)
Total provision for loan and lease losses:
52 46 52 14 (38)6 13 90 NM
Allowance for loan and lease losses - ending$715 $685 $664 $624 $622 $30 4 %$93 15 %
Reserve for unfunded commitments - beginning$87 $88 $80 $64 $66 $(1)(1)%$21 32 %
Cumulative effect of change in accounting principle— — — — — — NM — NM
Acquired reserve for unfunded commitments— — — — — — NM — NM
Provision for unfunded commitments(2)(1)8 16 (2)(1)(100)— — 
Reserve for unfunded commitments - ending$85 $87 $88 $80 $64 $(2)(2)%$21 33 %
Total allowance for credit losses- ending$800 $771 $752 $704 $686 $29 4 %$114 17 %
Numbers may not foot due to rounding.
16


CONSOLIDATED ASSET QUALITY RATIOS - ALLOWANCE FOR LOAN AND LEASE LOSSES
Quarterly, Unaudited
As of
1Q234Q223Q222Q221Q22
Allowance for loans and lease losses to loans and leases
Commercial, financial, and industrial (C&I)1.01 %0.97 %0.93 %0.88 %0.93 %
Commercial real estate1.12 %1.10 %1.14 %1.09 %1.21 %
Consumer real estate1.65 %1.63 %1.63 %1.60 %1.51 %
Credit card and other3.86 %3.72 %3.32 %3.01 %2.31 %
Total allowance for loans and lease losses to loans and leases1.21 %1.18 %1.16 %1.10 %1.13 %
Allowance for loans and lease losses to nonperforming loans and leases
Commercial, financial, and industrial (C&I)159 %202 %253 %213 %188 %
Commercial real estate238 %1,554 %1,422 %1,331 %1,303 %
Consumer real estate135 %131 %119 %115 %99 %
Credit card and other1,439 %1,364 %1,070 %1,021 %730 %
Total allowance for loans and lease losses to nonperforming loans and leases169 %217 %228 %207 %187 %
17

REGIONAL BANKING
Quarterly, Unaudited 
     1Q23 Change vs.
 1Q234Q223Q222Q221Q224Q221Q22
$/bp%$/bp%
Income Statement (millions)      
Net interest income$586 $544 $518 $465 $427 $42 8 %$159 37 %
Noninterest income107 107 110 114 114 — — (7)(6)
Total revenue693 650 628 579 541 43 7 152 28 
Noninterest expense322 322 304 301 306 — — 16 5 
Pre-provision net revenue3
371 328 324 278 235 43 13 136 58 
Provision for credit losses41 30 43 52 (30)11 37 71 NM
Income before income tax expense329 298 281 226 266 31 10 63 24 
Income tax expense77 70 66 53 63 7 10 14 22 
Net income$252 $228 $215 $173 $203 $24 11 %$49 24 %
Average Balances (billions)
Total loans and leases$41.8 $41.1 $40.1 $39.2 $38.0 $0.7 2 %$3.8 10 %
Interest-earning assets41.8 41.1 40.1 39.2 38.0 0.7 2 3.8 10 
Total assets44.5 43.8 42.8 41.9 40.5 0.7 2 4.0 10 
Total deposits57.8 59.6 61.9 64.5 66.6 (1.8)(3)(8.8)(13)
Key Metrics
Net interest margin6
5.70 %5.27 %5.15 %4.78 %4.58 %43 bp112 bp
Efficiency ratio 46.52 %49.59 %48.44 %52.03 %56.55 %(307)bp(1,003)bp
Loans-to-deposits ratio (period-end balances)73.95 %70.81 %66.77 %62.77 %57.46 %314 bp1,649 bp
Loans-to-deposits ratio (average-end balances)72.39 %69.02 %64.78 %60.75 %57.02 %337 bp1,537 bp
Return on average assets (annualized)2.30 %2.06 %1.99 %1.66 %2.03 %24 bp27 bp
Return on allocated equity7
27.78 %25.05 %23.95 %19.65 %23.51 %273 bp427 bp
Financial center locations417 417 417 417 417 — — %— — %
Numbers may not add to total due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 20.

Regional Banking segment: Offers financial products and services, including traditional lending and deposit taking, to consumer and commercial customers primarily in the southern and southeastern U.S. and other selected markets. Regional Banking also provides investment, wealth management, financial planning, trust and asset management services for consumer customers.
18


SPECIALTY BANKING
Quarterly, Unaudited 
     1Q23 Change vs.
 1Q234Q223Q222Q221Q224Q221Q22
$/bp%$/bp%
Income Statement (millions)      
Net interest income$125 $134 $138 $141 $144 $(9)(6)%$(19)(13)%
Noninterest income53 47 64 96 105 7 15 (52)(49)
Total revenue179 180 203 237 249 (2)(1)(70)(28)
Noninterest expense91 92 104 113 132 (1)(1)(41)(31)
Pre-provision net revenue3
88 89 99 124 118 (1)(1)(30)(25)
Provision for credit losses10 18 17 (18)(2)(8)(45)12 NM
Income before income tax expense78 71 81 142 120 7 10 (42)(35)
Income tax expense19 17 20 35 29 2 10 (10)(35)
Net income$59 $54 $62 $107 $91 $5 10 %$(32)(35)%
Average Balances (billions)
Total loans and leases$15.8 $15.9 $15.9 $15.8 $15.5 $(0.2)(1)%$0.2 1 %
Interest-earning assets18.1 18.4 18.6 19.1 19.0 (0.3)(2)(0.9)(5)
Total assets19.4 19.6 19.7 20.2 20.2 (0.2)(1)(0.8)(4)
Total deposits3.6 4.3 5.2 6.3 6.5 (0.7)(17)(2.9)(45)
Key Metrics
Fixed income product average daily revenue (thousands)$437 $403 $524 $612 $987 $33 8 %$(550)(56)%
Net interest margin6
2.80 %2.89 %2.96 %2.96 %3.07 %(9)bp(27)bp
Efficiency ratio 50.93 %50.84 %51.29 %47.74 %52.82 %9 bp(189)bp
Loans-to-deposits ratio (period-end balances)504 %426 %378 %268 %256 %7,770 bp24,822 bp
Loans-to-deposits ratio (average-end balances)440 %370 %307 %250 %239 %7,031 bp20,053 bp
Return on average assets (annualized)1.23 %1.09 %1.24 %2.13 %1.82 %14 bp(59)bp
Return on allocated equity7
15.13 %13.34 %15.02 %26.01 %22.77 %179 bp(764)bp
Numbers may not add to total due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 20.

Specialty Banking segment: Consists of lines of business that deliver product offerings and services with specialized industry knowledge. Specialty Banking’s lines of business include asset-based lending, mortgage warehouse lending, commercial real estate, franchise finance, correspondent banking, equipment finance, mortgage, and title insurance (prior to July 2022). In addition to traditional lending and deposit taking, Specialty Banking also delivers treasury management solutions, loan syndications, and international banking. Additionally, Specialty Banking has a line of business focused on fixed income securities sales, trading, underwriting, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory services, and derivative sales.
19

CORPORATE
Quarterly, Unaudited
 1Q23 Change vs.
 1Q234Q223Q222Q221Q224Q221Q22
$%$%
Income Statement (millions)
Net interest income/(expense)$(24)$31 $6 $(64)$(93)$(55)NM $69 74 %
Noninterest income11 21 39 (8)9 (10)(47)1 15 
Total revenues(13)52 45 (72)(83)(65)(125)70 84 
Noninterest expense64 89 61 75 55 (25)(28)9 17 
Pre-provision net revenue3
(77)(38)(16)(147)(138)(40)(105)61 44 
Provision for credit losses(1)(3)— (4)(7)1 57 6 84 
Income before income tax expense(76)(35)(16)(143)(131)(41)(117)55 42 
Income tax expense (benefit)(21)(23)(8)(39)(35)2 8 14 39 
Net income/(loss)$(55)$(12)$(9)$(104)$(96)$(43)NM $41 43 %
Average Balance Sheet (billions)    
Interest bearing assets$12.1 $13.3 $17.3 $21.5 $25.2 $(1.1)(9)%$(13.0)(52)%
Total assets14.9 16.0 20.0 24.1 27.8 (1.1)(7)(12.9)(46)
Numbers may not add to total due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.


Corporate segment: Consists primarily of corporate support functions including risk management, audit, accounting, finance, executive office, and corporate communications. Shared support services such as human resources, properties, technology, credit risk and bank operations are allocated to the activities of Regional Banking, Specialty Banking, and Corporate. Additionally, the Corporate segment includes centralized management of capital and funding to support the business activities of the company including management of wholesale funding, liquidity, and capital management and allocation. Finally, the Corporate segment includes the revenue and expense associated with run-off businesses such as pre-2009 mortgage banking elements, run-off consumer and trust preferred loan portfolios, and other exited businesses.


FOOTNOTES
1 Taxable equivalent interest income and interest expense are non-GAAP measures and reconcile to net interest income (GAAP) in the table.
2 Occupancy and Equipment expense includes Computer Software Expense.
3 Pre-provision net revenue is a non-GAAP measure and is reconciled to income before income taxes (GAAP) in the table.
4 Represents a non-GAAP measure and is reconciled to the nearest GAAP measure in the non-GAAP to GAAP reconciliations beginning on page 21.
5 Credit card and other includes an insignificant amount of commercial credit card balances.
6 Net interest margin is computed using total NII adjusted for FTE assuming a statutory federal income tax rate of 21 percent, and, where applicable state taxes.
7 Segment equity is allocated based on an internal allocation methodology.
8 First quarter 2022 includes 9.8 million shares related to the one month average impact of Series G convertible securities issued in connection with TD transaction; all other periods include 27.5 million shares related to the full impact of these shares.


20

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
($s in millions, except per share data)1Q234Q223Q222Q221Q22
Tangible Common Equity (Non-GAAP)    
(A) Total equity (GAAP)$8,895 $8,547 $8,283 $8,551 $8,696 
Less: Noncontrolling interest (a)295 295 295 295 295 
Less: Preferred stock (a)1,014 1,014 1,014 1,014 1,014 
(B) Total common equity$7,586 $7,238 $6,974 $7,242 $7,387 
Less: Intangible assets (GAAP) (b)1,732 1,744 1,757 1,782 1,795 
(C) Tangible common equity (Non-GAAP)$5,853 $5,494 $5,217 $5,459 $5,592 
Tangible Assets (Non-GAAP) 
(D) Total assets (GAAP)$80,729 $78,953 $80,299 $85,132 $88,660 
Less: Intangible assets (GAAP) (b)1,732 1,744 1,757 1,782 1,795 
(E) Tangible assets (Non-GAAP)$78,997 $77,209 $78,542 $83,350 $86,865 
Period-end Shares Outstanding     
(F) Period-end shares outstanding538 537 537 536 535 
Ratios
(A)/(D) Total equity to total assets (GAAP)11.02 %10.83 %10.32 %10.04 %9.81 %
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)7.41 %7.12 %6.64 %6.55 %6.44 %
(B)/(F) Book value per common share (GAAP)$14.11 $13.48 $12.99 $13.50 $13.82 
(C)/(F) Tangible book value per common share (Non-GAAP)$10.89 $10.23 $9.72 $10.18 $10.46 
(a)     Included in Total equity on the Consolidated Balance Sheet.
(b)     Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.


21

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
($s in millions, except per share data)1Q234Q223Q222Q221Q22
Adjusted Diluted EPS
Net income available to common shareholders ("NIAC") (GAAP)a$243 $258 $257 $166 $187 
Plus Tax effected notable items (Non-GAAP) (a)16 34 (5)29 24 
Adjusted net income available to common shareholders (Non-GAAP)b$259 $293 $252 $195 $211 
Diluted Shares (GAAP)8
c572 572 570 569 550 
Diluted EPS (GAAP)a/c$0.43 $0.45 $0.45 $0.29 $0.34 
Adjusted diluted EPS (Non-GAAP)b/c$0.45 $0.51 $0.44 $0.34 $0.38 
Adjusted Net Income ("NI") and Adjusted Return on Assets ("ROA")
Net Income ("NI") (GAAP)$256 $270 $268 $177 $198 
Plus Tax effected notable items (Non-GAAP) (a)16 34 (5)29 24 
Adjusted NI (Non-GAAP)$271 $304 $263 $206 $223 
NI (annualized) (GAAP)d$1,037 $1,070 $1,063 $709 $801 
Adjusted NI (annualized) (Non-GAAP)e$1,100 $1,206 $1,045 $823 $900 
Average assets (GAAP)f$78,841 $79,521 $82,551 $86,326 $88,587 
ROA (GAAP)d/f1.32 %1.35 %1.29 %0.82 %0.90 %
Adjusted ROA (Non-GAAP)e/f1.40 %1.52 %1.27 %0.95 %1.02 %
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$987 $1,025 $1,020 $666 $756 
Adjusted Net income available to common shareholders (annualized) (Non-GAAP)h$1,050 $1,161 $1,001 $781 $855 
Average Common Equity (GAAP)i$7,398 $7,106 $7,360 $7,305 $7,628 
Intangible Assets (GAAP) (b)1,738 1,750 1,767 1,789 1,802 
Adjusted Average Tangible Common Equity (Non-GAAP)j$5,659 $5,356 $5,593 $5,516 $5,826 
ROCE (GAAP)g/i13.34 %14.42 %13.85 %9.12 %9.92 %
ROTCE (Non-GAAP)g/j17.43 %19.14 %18.23 %12.07 %12.98 %
Adjusted ROTCE (Non-GAAP)h/j18.55 %21.68 %17.89 %14.15 %14.68 %
(a) Amounts adjusted for notable items as detailed on page 9.
(b)     Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.


22

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
(In millions)1Q234Q223Q222Q221Q22
Adjusted Noninterest Income as a % of Total Revenue
Noninterest income (GAAP)k$171 $174 $213 $201 $229 
Plus notable items (GAAP) (a)— (1)(32)(13)(6)
Adjusted noninterest income (Non-GAAP)l$171 $173 $181 $188 $222 
Revenue (GAAP)m$859 $882 $875 $743 $707 
Taxable-equivalent adjustment4 4 4 3 3 
Revenue- Taxable-equivalent (Non-GAAP)863 886 878 746 710 
Plus notable items (GAAP) (a)— (1)(32)(13)(6)
Adjusted revenue (Non-GAAP)n$863 $885 $847 $733 $704 
Noninterest income as a % of total revenue (GAAP)k/m19.94 %19.68 %24.30 %27.06 %32.31 %
Adjusted noninterest income as a % of total revenue (Non-GAAP)l/n19.85 %19.55 %21.37 %25.68 %31.63 %
Adjusted Efficiency Ratio
Noninterest expense (GAAP)o$478 $503 $468 $489 $493 
Plus notable items (GAAP) (a)(21)(46)(25)(50)(37)
Adjusted noninterest expense (Non-GAAP)p$457 $458 $444 $438 $455 
Revenue (GAAP)q$859 $882 $875 $743 $707 
Taxable-equivalent adjustment4 4 4 3 3 
Revenue- Taxable-equivalent (Non-GAAP)863 886 878 746 710 
Plus notable items (GAAP) (a)— (1)(32)(13)(6)
Adjusted revenue (Non-GAAP)r$863 $885 $847 $733 $704 
Efficiency ratio (GAAP)o/q55.65 %57.07 %53.56 %65.76 %69.66 %
Adjusted efficiency ratio (Non-GAAP)p/r52.95 %51.70 %52.42 %59.79 %64.64 %
(a) Amounts adjusted for notable items as detailed on page 9.
(b)     Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.
23

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
($s in millions)
1Q23 vs 4Q22
NII/NIM AnalysisNII%NIM
1Q23 Reported (FTE) 6913.87 %
Less: non-core items
PPP coupon income and fees— — 
Loan Accretion70.04 
IBKC Premium Amortization(6)(0.03)
1Q23 Core (FTE) (Non-GAAP)$690 (3)%3.86 %
4Q22 Reported (FTE)$712 3.89 %
Less: non-core items
PPP coupon income and fees— — 
Loan Accretion70.04 
IBKC Premium Amortization(6)(0.03)
4Q22 Core (FTE) (Non-GAAP)$711 3.89 %
Numbers may not foot due to rounding.

Period-endAverage
($s in millions)1Q234Q221Q23 vs. 4Q221Q234Q221Q23 vs. 4Q22
Loans excluding LMC & PPP$%$%
Total Loans (GAAP)$59,045 $58,101 $944 2 %$58,074 $57,564 $510 1 %
PPP (GAAP)5376(23)(30)%57121(64)(53)%
LMC (GAAP)2,0402,258(218)(10)%1,8752,299(424)(18)%
Total Loans excl. LMC & PPP (Non-GAAP)56,95255,7671,185 2 %56,14255,144998 2 %
Total Consumer (GAAP)13,47513,093382 3 %13,22612,907319 2 %
Total Commercial excl. LMC & PPP (Non-GAAP)43,477 42,674 803 2 %42,916 42,237 679 2 %
Total CRE (GAAP)13,39713,228169 1 %13,290 13,095 195 1 %
Total C&I excl. LMC & PPP (Non-GAAP)$30,080 $29,446 $634 2 %$29,626 $29,142 $484 2 %
Loans excluding LMC
Total Loans (GAAP)$59,045 $58,101 $944 2 %$58,074 $57,564 $510 1 %
LMC (GAAP)2,0402,258(218)(10)%1,8752,299(424)(18)%
Total Loans excl. LMC (Non-GAAP)57,005 55,843 1,162 2 %56,199 55,265 934 2 %
Total Consumer (GAAP)13,47513,093382 3 %13,22612,907319 2 %
Total Commercial excl. LMC (Non-GAAP)43,530 42,750 780 2 %42,973 42,358 615 1 %
Total CRE (GAAP)$13,397 $13,228 $169 1 %$13,290 $13,095 $195 1 %
Total C&I excl. LMC (Non-GAAP)$30,133 $29,522 $611 2 %$29,683 $29,263 $420 1 %
Numbers may not foot due to rounding.
24


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

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

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

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

Specialty Banking segment: Consists of lines of business that deliver product offerings and services with specialized industry knowledge. Specialty Banking’s lines of business include asset-based lending, mortgage warehouse lending, commercial real estate, franchise finance, correspondent banking, equipment finance, mortgage, and title insurance (prior to July 2022). In addition to traditional lending and deposit taking, Specialty Banking also delivers treasury management solutions, loan syndications, and international banking. Additionally, Specialty Banking has a line of business focused on fixed income securities sales, trading, underwriting, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory services, and derivative sales.

Corporate segment: Consists primarily of corporate support functions including risk management, audit, accounting, finance, executive office, and corporate communications. Shared support services such as human resources, properties, technology, credit risk and bank operations are allocated to the activities of Regional Banking, Specialty Banking, and Corporate. Additionally, the Corporate segment includes centralized management of capital and funding to support the business activities of the company including management of wholesale funding, liquidity, and capital management and allocation. Finally, the Corporate segment includes the revenue and expense associated with run-off businesses such as pre-2009 mortgage banking elements, run-off consumer and trust preferred loan portfolios, and other exited businesses.

25