EX-99.3

EX-99.3 4 d809034dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

LOGO

Citizens Financial Group, Inc.

Financial Supplement

Third Quarter 2014


Table of Contents	Page

Consolidated Financial Highlights		3

Consolidated Statements of Operations (unaudited)		5

Consolidated Balance Sheets (unaudited)		7

Loans and Deposits		8

Average Balance Sheets and Annualized Yields		9

Segment Financial Highlights		11

Credit-Related Information
Credit Exposure		22
Nonperforming Assets		23
Charge-offs, Recoveries and Related Ratios		24
Summary of Changes in the Allowances		26
Allowance Components		27

Capital and Ratios		28

Per-Share Related Information		29
Non-GAAP Financial Measures and Reconciliations		30
Forward-Looking Statements		37

CONSOLIDATED FINANCIAL HIGHLIGHTS

(dollars in millions, except per share and ratio data)


	QUARTERLY TRENDS																										FOR THE NINE MONTHS ENDED SEPTEMBER 30,
															3Q14 Change																	2014 Change
	3Q14			2Q14		1Q14			4Q13			3Q13			2Q14						3Q13						2014		2013			2013
															$			%			$			%								$			%
SELECTED OPERATING DATA
Total revenue	$	1,161		$	1,473	$	1,166		$	1,158		$	1,153		($	312	)		(21	)%	$	8			1	%	$	3,800	$	3,532		$	268			8	%
Noninterest expense		810			948		810			818			788			(138	)		(15	)		22			3			2,568		6,861			(4,293	)		(63	)

Profit (loss) before provision for credit losses		351			525		356			340			365			(174	)		(33	)		(14	)		(4	)		1,232		(3,329	)		4,561			137
Provision for credit losses		77			49		121			132			145			28			57			(68	)		(47	)		247		347			(100	)		(29	)
NET INCOME (LOSS)		189			313		166			152			144			(124	)		(40	)		45			31			668		(3,578	)		4,246			119
Net income, excluding restructuring charges and special items¹		202			205		166			169			144			(3	)		(1	)		58			40			573		502			71			14

PER COMMON SHARE DATA
Basic earnings	$	0.34		$	0.56	$	0.30		$	0.27		$	0.26		($	0.22	)		(39	)%	$	0.08			31	%	$	1.19	($	6.39	)	$	7.58			119	%
Diluted earnings		0.34			0.56		0.30			0.27			0.26			(0.22	)		(39	)		0.08			31			1.19		(6.39	)		7.58			119
Basic earnings, excluding restructuring charges and special items¹		0.36			0.37		0.30			0.30			0.26			(0.01	)		(3	)		0.10			38			1.02		0.89			0.13			15
Diluted earnings, excluding restructuring charges and special items¹		0.36			0.37		0.30			0.30			0.26			(0.01	)		(3	)		0.10			38			1.02		0.89			0.13			15
Cash dividends declared and paid per share		0.68			0.61		0.04			0.67			0.68			0.07			11			—			—			1.34		1.45			(0.11	)		(8	)
Book value		34.61			35.00		34.72			34.28			34.67			(0.39	)		(1	)		(0.06	)		—			34.61		34.67			(0.06	)		—
Tangible book value		23.04			23.39		23.08			22.61			22.97			(0.35	)		(1	)		0.07			—			23.04		22.97			0.07			—

COMMON SHARES OUTSTANDING
Average: Basic		559,998,324			559,998,324		559,998,324			559,998,324			559,998,324			—			—	%		—			—	%		559,998,324		559,998,324			—			—	%
Diluted		560,243,747			559,998,324		559,998,324			559,998,324			559,998,324			245,423			—			245,423			—			560,081,031		559,998,324			82,707			—
Common shares at period-end		559,998,324			559,998,324		559,998,324			559,998,324			559,998,324			—			—			—			—			559,998,324		559,998,324			—			—
Closing share price	$	23.42		$	—	$	—		$	—		$	—		$	23.42			—		$	23.42			—		$	23.42		—		$	23.42			—
Market capitalization		13,115			—		—			—			—			13,115			—			13,115			—			13,115		—			13,115			—

SEGMENT NET INCOME (LOSS)
Consumer Banking	$	54		$	44	$	32		$	50		$	52		$	10			23	%	$	2			4	%	$	130	$	192		($	62	)		(32	)%
Commercial Banking		139			141		141			123			127			(2	)		(1	)		12			9			421		391			30			8
Other		(4	)		128		(7	)		(21	)		(35	)		(132	)		(103	)		31			89			117		(4,161	)		4,278			103

NET INCOME (LOSS)	$	189		$	313	$	166		$	152		$	144		($	124	)		(40	)	$	45			31		$	668	($	3,578	)	$	4,246			119

¹	These are non-GAAP financial measures. For further information on these measures, refer to pages 30-36.

CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions, except ratio and headcount data)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																3Q14 Change																		2014 Change
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14						3Q13						2014			2013			2013
																$			%			$			%									$			%
FINANCIAL RATIOS
Net interest margin		2.77	%		2.87	%		2.89	%		2.83	%		2.88	%		(10) bps			—			(11) bps			—			2.84	%		2.85	%		(1) bps			—
Return on average common equity		3.87			6.41			3.48			3.12			2.91			(254) bps			—			96 bps			—			4.59			(15.04	)		1,963 bps			—
Return on average common equity, excluding restructuring charges and special items¹		4.14			4.19			3.48			3.47			2.91			(5) bps			—			123 bps			—			3.94			2.96			98 bps			—
Return on average tangible common equity¹		5.81			9.59			5.24			4.71			4.34			(378) bps			—			147 bps			—			6.90			(25.54	)		3,244 bps			—
Return on average tangible common equity, excluding restructuring charges and special items¹		6.22			6.28			5.24			5.24			4.34			(6) bps			—			188 bps			—			5.92			5.03			89 bps			—
Return on average total assets		0.58			0.99			0.54			0.50			0.49			(41) bps			—			9 bps			—			0.71			(2.82	)		353 bps			—
Return on average total assets, excluding restructuring charges and special items¹		0.62			0.65			0.54			0.56			0.49			(3) bps			—			13 bps			—			0.61			0.55			6 bps			—
Return on average total tangible assets¹		0.61			1.04			0.57			0.53			0.52			(43) bps			—			9 bps			—			0.74			(3.05	)		379 bps			—
Return on average total tangible assets, excluding restructuring charges and special items¹		0.66			0.68			0.57			0.59			0.52			(2) bps			—			14 bps			—			0.64			0.60			4 bps			—
Efficiency ratio¹		69.84			64.33			69.43			70.62			68.49			551 bps			—			135 bps			—			67.58			194.29			(12,671) bps			—
Efficiency ratio, excluding restructuring charges and special items¹		68.02			70.23			69.43			68.35			68.49			(221) bps			—			(47) bps			—			69.23			68.70			53 bps			—

CAPITAL RATIOS - BASEL I PERIOD END (PRELIMINARY)
Tier 1 capital ratio		12.9	%		13.3	%		13.4	%		13.5	%		14.0	%
Total capital ratio		16.1			16.2			16.0			16.1			16.3
Leverage ratio		10.9			11.1			11.4			11.6			12.1
Tier 1 common equity ratio²		12.9			13.3			13.4			13.5			13.9

SELECTED BALANCE SHEET DATA (PERIOD END)
Total assets	$	131,341		$	130,279		$	126,892		$	122,154		$	120,074		$	1,062			1	%	$	11,267			9	%	$	131,341		$	120,074		$	11,267			9	%
Loans and leases:
Commercial		41,470			40,974			40,075			39,395			39,084			496			1			2,386			6			41,470			39,084			2,386			6
Retail		49,279			47,855			47,008			46,464			46,409			1,424			3			2,870			6			49,279			46,409			2,870			6

Total loans and leases		90,749			88,829			87,083			85,859			85,493			1,920			2			5,256			6			90,749			85,493			5,256			6

Deposits	$	93,463		$	91,656		$	87,462		$	86,903		$	93,930		$	1,807			2		($	467	)		—		$	93,463		$	93,930		($	467	)		—
Long-term borrowed funds		2,075			1,732			1,403			1,405			1,064			343			20			1,011			95			2,075			1,064			1,011			95
Total stockholders’ equity		19,383			19,597			19,442			19,196			19,413			(214	)		(1	)		(30	)		—			19,383			19,413			(30	)		—

Loans-to-deposits ratio (period-end balances)³		97.32	%		97.20	%		95.48	%		94.50	%		91.34	%		12 bps			—			598 bps			—			97.32	%		91.34	%		598 bps			—
Loans-to-deposits ratio (average balances)³		98.01			96.77			95.37			92.35			91.12			124 bps			—			689 bps			—			96.82			91.74			508 bps			—

Full-time equivalent employees		17,852			18,049			18,856			19,152			18,961			(197	)		(1	)		(1,109	)		(6	)		17,852			18,961			(1,109	)		(6	)

¹	These are non-GAAP financial measures. For further information on these measures, refer pages 30-36.

²	Tier 1 common capital represents Tier 1 capital, excluding qualifying restricted core capital elements. The Tier 1 common equity ratio is calculated as Tier 1 common capital divided by risk-weighted assets.

³	Ratios include both loans and leases held for sale and deposits held for sale.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(dollars in millions)


	QUARTERLY TRENDS																						FOR THE NINE MONTHS ENDED SEPTEMBER 30,
											3Q14 Change																	2014 Change
	3Q14		2Q14		1Q14		4Q13		3Q13		2Q14						3Q13						2014		2013			2013
											$			%			$			%								$			%
INTEREST INCOME:
Interest and fees on loans and leases	$	754	$	751	$	730	$	743	$	748	$	3			—	%	$	6			1	%	$	2,235	$	2,258		($	23	)		(1	)%
Interest and fees on loans held for sale		2		1		1		2		3		1			100			(1	)		(33	)		4		10			(6	)		(60	)
Interest and fees on other loans held for sale		—		10		12		—		—		(10	)		(100	)		—			—			22		—			22			—
Investment securities		155		154		149		129		120		1			1			35			29			458		348			110			32
Interest-bearing deposits in banks		2		1		1		2		2		1			100			—			—			4		9			(5	)		(56	)

Total interest income		913		917		893		876		873		(4	)		—			40			5			2,723		2,625			98			4

INTEREST EXPENSE:
Deposits		41		34		33		40		58		7			21			(17	)		(29	)		108		176			(68	)		(39	)
Deposits held for sale		—		2		2		—		—		(2	)		(100	)		—			—			4		—			4			—
Federal funds purchased and securities sold under agreements to repurchase		9		1		15		42		35		8			800			(26	)		(74	)		25		150			(125	)		(83	)
Other short-term borrowed funds		21		30		19		1		2		(9	)		(30	)		19			950			70		4			66			1,650
Long-term borrowed funds		22		17		16		14		8		5			29			14			175			55		16			39			244

Total interest expense		93		84		85		97		103		9			11			(10	)		(10	)		262		346			(84	)		(24	)

Net interest income		820		833		808		779		770		(13	)		(2	)		50			6			2,461		2,279			182			8


NONINTEREST INCOME:
Service charges and fees		144		147		139		152		163		(3	)		(2	)		(19	)		(12	)		430		488			(58	)		(12	)
Card fees		58		61		56		58		63		(3	)		(5	)		(5	)		(8	)		175		176			(1	)		(1	)
Trust and investment services fees		39		42		39		40		39		(3	)		(7	)		—			—			120		109			11			10
Foreign exchange and trade finance fees		26		22		22		24		25		4			18			1			4			70		73			(3	)		(4	)
Capital markets fees		22		26		18		18		11		(4	)		(15	)		11			100			66		35			31			89
Mortgage banking fees		21		14		20		20		20		7			50			1			5			55		133			(78	)		(59	)
Bank-owned life insurance income		13		12		11		13		12		1			8			1			8			36		37			(1	)		(3	)
Securities gains, net		2		—		25		25		25		2			—			(23	)		(92	)		27		119			(92	)		(77	)
Other income		16		316		28		29		25		(300	)		(95	)		(9	)		(36	)		360		83			277			334

Total noninterest income		341		640		358		379		383		(299	)		(47	)		(42	)		(11	)		1,339		1,253			86			7

TOTAL REVENUE		1,161		1,473		1,166		1,158		1,153		(312	)		(21	)		8			1			3,800		3,532			268			8
Provision for credit losses		77		49		121		132		145		28			57			(68	)		(47	)		247		347			(100	)		(29	)

NONINTEREST EXPENSE:
Salaries and employee benefits		409		467		405		391		403		(58	)		(12	)		6			1			1,281		1,261			20			2
Outside services		106		125		83		101		87		(19	)		(15	)		19			22			314		259			55			21
Occupancy		77		87		81		83		80		(10	)		(11	)		(3	)		(4	)		245		244			1			—
Equipment expense		58		65		64		68		69		(7	)		(11	)		(11	)		(16	)		187		207			(20	)		(10	)
Amortization of software		38		33		31		32		26		5			15			12			46			102		71			31			44
Goodwill impairment		—		—		—		—		—		—			—			—			—			—		4,435			(4,435	)		(100	)
Other operating expense		122		171		146		143		123		(49	)		(29	)		(1	)		(1	)		439		384			55			14

Total noninterest expense		810		948		810		818		788		(138	)		(15	)		22			3			2,568		6,861			(4,293	)		(63	)

Income before income tax expense (benefit)		274		476		235		208		220		(202	)		(42	)		54			25			985		(3,676	)		4,661			127
Income tax expense (benefit)		85		163		69		56		76		(78	)		(48	)		9			12			317		(98	)		415			423

NET INCOME (LOSS)	$	189	$	313	$	166	$	152	$	144	($	124	)		(40	)	$	45			31		$	668	($	3,578	)	$	4,246			119

Net income (loss), excluding restructuring charges and special items¹	$	202	$	205	$	166	$	169	$	144	($	3	)		(1	)	$	58			40		$	573	$	502		$	71			14

¹	These are non-GAAP financial measures. For further information on these measures, refer to pages 30-36.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited), CONTINUED


	QUARTERLY TRENDS																										FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																3Q14 Change																	2014 Change
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14						3Q13					2014			2013			2013
																$			%			$		%									$		%
PER COMMON SHARE DATA
Basic earnings	$	0.34		$	0.56		$	0.30		$	0.27		$	0.26		($	0.22	)		(39	)%	$	0.08		31	%	$	1.19		($	6.39	)	$	7.58		119	%
Diluted earnings		0.34			0.56			0.30			0.27			0.26			(0.22	)		(39	)		0.08		31			1.19			(6.39	)		7.58		119
Basic earnings, excluding restructuring charges and special items¹		0.36			0.37			0.30			0.30			0.26			(0.01	)		(3	)		0.10		38			1.02			0.89			0.13		15
Diluted earnings, excluding restructuring charges and special items¹		0.36			0.37			0.30			0.30			0.26			(0.01	)		(3	)		0.10		38			1.02			0.89			0.13		15

FINANCIAL RATIOS
Return on average common equity		3.87	%		6.41	%		3.48	%		3.12	%		2.91	%		(254) bps			—			96 bps		—			4.59	%		(15.04	)%		1,963 bps		—
Return on average common equity, excluding restructuring charges and special items¹		4.14			4.19			3.48			3.47			2.91			(5) bps			—			123 bps		—			3.94			2.96			98 bps		—
Return on average tangible common equity¹		5.81			9.59			5.24			4.71			4.34			(378) bps			—			147 bps		—			6.90			(25.54	)		3,244 bps		—
Return on average tangible common equity, excluding restructuring charges and special items¹		6.22			6.28			5.24			5.24			4.34			(6) bps			—			188 bps		—			5.92			5.03			89 bps		—
Return on average total assets		0.58			0.99			0.54			0.50			0.49			(41) bps			—			9 bps		—			0.71			(2.82	)		353 bps		—
Return on average total assets, excluding restructuring charges and special items¹		0.62			0.65			0.54			0.56			0.49			(3) bps			—			13 bps		—			0.61			0.55			6 bps		—
Return on average total tangible assets¹		0.61			1.04			0.57			0.53			0.52			(43) bps			—			9 bps		—			0.74			(3.05	)		379 bps		—
Return on average total tangible assets, excluding restructuring charges and special items¹		0.66			0.68			0.57			0.59			0.52			(2) bps			—			14 bps		—			0.64			0.60			4 bps		—
Effective income tax rate		30.81			34.27			29.45			26.87			34.57			(346) bps			—			(376) bps		—			32.16			2.66			2,950 bps		—
Efficiency ratio¹		69.84			64.33			69.43			70.62			68.49			551 bps			—			135 bps		—			67.58			194.29			(12,671) bps		—
Efficiency ratio, excluding restructuring charges and special items¹		68.02			70.23			69.43			68.35			68.49			(221) bps			—			(47) bps		—			69.23			68.70			53 bps		—

¹	These are non-GAAP financial measures. For further information on these measures, refer to pages 30-36.

CONSOLIDATED BALANCE SHEETS (unaudited)

(dollars in millions)


PERIOD END BALANCES
	AS OF															SEPTEMBER 30, 2014 CHANGE
	Sept 30, 2014			June 30, 2014			Mar 31, 2014			Dec 31, 2013			Sept 30, 2013			June 30, 2014						Sept 30, 2013
																$			%			$			%
ASSETS:
Cash and due from banks	$	993		$	1,038		$	909		$	1,406		$	838		($	45	)		(4	%)	$	155			18	%
Interest-bearing cash and due from banks		1,896			4,318			1,942			1,351			1,744			(2,422	)		(56	)		152			9
Interest-bearing deposits in banks		292			309			300			233			236			(17	)		(6	)		56			24
Securities available for sale, at fair value		18,666			18,493			18,412			15,995			19,888			173			1			(1,222	)		(6	)
Securities held to maturity		5,289			5,382			5,457			4,315			—			(93	)		(2	)		5,289			—
Other investment securities		893			948			935			935			964			(55	)		(6	)		(71	)		(7	)
Loans held for sale, at fair value		205			173			131			176			307			32			18			(102	)		(33	)
Other loans held for sale		3			89			1,248			1,078			—			(86	)		(97	)		3			—

Loans and leases		90,749			88,829			87,083			85,859			85,493			1,920			2			5,256			6
Less: Allowance for loan and lease losses		(1,201	)		(1,210	)		(1,259	)		(1,221	)		(1,219	)		9			1			18			1

Net loans and leases		89,548			87,619			85,824			84,638			84,274			1,929			2			5,274			6
Derivative assets		547			635			626			650			742			(88	)		(14	)		(195	)		(26	)
Premises and equipment		541			560			574			592			648			(19	)		(3	)		(107	)		(17	)
Bank-owned life insurance		1,370			1,361			1,350			1,339			1,328			9			1			42			3
Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—
Due from broker		2,067			—			—			446			—			2,067			—			2,067			—
Other branch assets held for sale		—			—			40			46			—			—			—			—			—
Other assets		2,155			2,478			2,268			2,078			2,229			(323	)		(13	)		(74	)		(3	)

TOTAL ASSETS	$	131,341		$	130,279		$	126,892		$	122,154		$	120,074		$	1,062			1		$	11,267			9


LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Deposits:
Noninterest-bearing	$	25,877		$	26,670		$	25,681		$	24,931		$	25,919		($	793	)		(3	%)	($	42	)		—	%
Interest-bearing		67,586			64,986			61,781			61,972			68,011			2,600			4			(425	)		(1	)

Total deposits		93,463			91,656			87,462			86,903			93,930			1,807			2			(467	)		—
Deposits held for sale		—			—			5,188			5,277			—			—			—			—			—
Federal funds purchased and securities sold under agreements to repurchase		5,184			6,807			6,080			4,791			3,424			(1,623	)		(24	)		1,760			51
Other short-term borrowed funds		6,702			7,702			4,950			2,251			2			(1,000	)		(13	)		6,700			NM
Derivative liabilities		638			747			828			939			1,008			(109	)		(15	)		(370	)		(37	)
Deferred taxes, net		354			403			319			199			147			(49	)		(12	)		207			141
Long-term borrowed funds		2,075			1,732			1,403			1,405			1,064			343			20			1,011			95
Due to broker		2,087			—			—			—			—			2,087			—			2,087			—
Other liabilities		1,455			1,635			1,220			1,193			1,086			(180	)		(11	)		369			34

TOTAL LIABILITIES		111,958			110,682			107,450			102,958			100,661			1,276			1			11,297			11
STOCKHOLDERS’ EQUITY:
Preferred stock:
$25.00 par value, 100,000,000 shares authorized, no shares outstanding for each of the periods presented		—			—			—			—			—			—			—			—			—
Common stock:
$.01 par value, 1,000,000,000 shares authorized, 559,998,324 shares issued and outstanding for each of the periods presented		6			6			6			6			6			—			—			—			—
Additional paid-in capital		18,660			18,603			18,603			18,603			18,589			57			—			71			—
Retained earnings		1,152			1,346			1,376			1,235			1,457			(194	)		(14	)		(305	)		(21	)
Accumulated other comprehensive loss		(435	)		(358	)		(543	)		(648	)		(639	)		(77	)		(22	)		204			32

TOTAL STOCKHOLDERS’ EQUITY		19,383			19,597			19,442			19,196			19,413			(214	)		(1	)		(30	)		—

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	131,341		$	130,279		$	126,892		$	122,154		$	120,074		$	1,062			1		$	11,267			9

Memo: Total tangible common equity¹	$	12,900		$	13,098		$	12,925		$	12,662		$	12,861		($	198	)		(2	)	$	39			—

¹	Total tangible common equity is a non-GAAP financial measure. For further information on these measures, refer to page 28.

LOANS AND DEPOSITS

(dollars in millions)


PERIOD END BALANCES
	AS OF										SEPTEMBER 30, 2014 CHANGE
	Sept 30, 2014		June 30, 2014		Mar 31, 2014		Dec 31, 2013		Sept 30, 2013		June 30, 2014						Sept 30, 2013
											$			%			$			%

LOANS AND LEASES:
Commercial	$	30,356	$	30,076	$	29,435	$	28,667	$	28,984	$	280			1	%	$	1,372			5	%
Commercial real estate		7,239		7,158		6,902		6,948		6,524		81			1			715			11
Leases		3,875		3,740		3,738		3,780		3,576		135			4			299			8

Total commercial		41,470		40,974		40,075		39,395		39,084		496			1			2,386			6

Residential, including originated home equity products		30,458		30,116		29,761		29,694		29,762		342			1			696			2
Home equity products serviced by others		1,870		1,972		2,075		2,171		2,281		(102	)		(5	)		(411	)		(18	)
Other secured retail		13,206		12,180		11,216		10,700		10,427		1,026			8			2,779			27
Unsecured retail		3,745		3,587		3,956		3,899		3,939		158			4			(194	)		(5	)

Total retail		49,279		47,855		47,008		46,464		46,409		1,424			3			2,870			6

Total loans and leases	$	90,749	$	88,829	$	87,083	$	85,859	$	85,493	$	1,920			2		$	5,256			6


Loans held for sale	$	205	$	173	$	131	$	176	$	307	$	32			18	%	$	(102	)		(33	)%

Other loans held for sale¹		3		89		1,248		1,078		—		(86	)		(97	)		3			—

DEPOSITS:
Demand	$	25,877	$	26,670	$	25,681	$	24,931	$	25,919	($	793	)		(3	%)	($	42	)		—	%
Checking with interest		15,449		15,171		13,694		13,630		14,034		278			2			1,415			10
Regular savings		7,655		7,829		7,899		7,509		8,008		(174	)		(2	)		(353	)		(4	)
Money market accounts		32,870		31,687		30,689		31,245		34,034		1,183			4			(1,164	)		(3	)
Term deposits		11,612		10,299		9,499		9,588		11,935		1,313			13			(323	)		(3	)

Total deposits	$	93,463	$	91,656	$	87,462	$	86,903	$	93,930	$	1,807			2		($	467	)		—


Deposits held for sale¹	$	—	$	—	$	5,188	$	5,277	$	—	$	—			—	%	$	—			—	%

¹	Consists primarily of loans and deposits held for sale as part of the Chicago branch sale.

AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS

(dollars in millions)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPT 30,
AVERAGE BALANCES																2Q14 Change																		2014 Change
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14						3Q13						2014			2013			2013
																$			%			$			%									$			%
ASSETS:
Interest-bearing cash and due from banks and deposits in banks	$	2,685		$	2,211		$	1,768		$	2,000		$	1,677		$	474			21		$	1,008			60		$	2,224		$	2,372		($	148	)		(6	)

Taxable investment securities		24,648			24,579			23,375			20,909			19,300			69			—			5,348			28			24,205			18,441			5,764			31
Non-taxable investment securities		10			11			11			11			11			(1	)		(9	)		(1	)		(9	)		11			12			(1	)		(8	)

Total investment securities		24,658			24,590			23,386			20,920			19,311			68			—			5,347			28			24,216			18,453			5,763			31


Commercial		30,186			29,674			29,108			29,058			28,522			512			2			1,664			6			29,666			28,519			1,147			4
Commercial real estate		7,216			7,082			6,898			6,859			6,435			134			2			781			12			7,067			6,469			598			9
Leases		3,789			3,716			3,723			3,619			3,505			73			2			284			8			3,743			3,410			333			10

Total commercial		41,191			40,472			39,729			39,536			38,462			719			2			2,729			7			40,476			38,398			2,078			5


Home equity lines of credit		16,163			16,190			16,250			16,801			16,961			(27	)		—			(798	)		(5	)		16,198			17,207			(1,009	)		(6	)
Residential mortgages		11,001			10,355			9,889			9,342			8,892			646			6			2,109			24			10,420			9,024			1,396			15
Home equity loans		5,060			5,403			5,685			5,883			6,102			(343	)		(6	)		(1,042	)		(17	)		5,380			6,481			(1,101	)		(17	)
Automobile		11,438			10,528			9,408			9,007			8,817			910			9			2,621			30			10,542			8,806			1,736			20
Student and other retail		3,136			3,424			3,532			3,545			3,586			(288	)		(8	)		(450	)		(13	)		3,366			3,693			(327	)		(9	)
Credit cards		1,661			1,647			1,639			1,702			1,670			14			1			(9	)		(1	)		1,647			1,657			(10	)		(1	)

Total retail		48,459			47,547			46,403			46,280			46,028			912			2			2,431			5			47,553			46,868			685			1

Total loans and leases		89,650			88,019			86,132			85,816			84,490			1,631			2			5,160			6			88,029			85,266			2,763			3
Loans held for sale		176			138			127			224			379			38			28			(203	)		(54	)		147			442			(295	)		(67	)
Other loans held for sale		27			1,034			1,092			12			—			(1,007	)		(97	)		27			—			714			2			712			NM

Interest-earning assets		117,196			115,992			112,505			108,972			105,857			1,204			1			11,339			11			115,330			106,535			8,795			8
Allowance for loan and lease losses		(1,202	)		(1,286	)		(1,238	)		(1,223	)		(1,205	)		84			7			3			—			(1,242	)		(1,217	)		(25	)		(2	)
Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			9,800			(2,924	)		(30	)
Other noninterest-earning assets		5,821			5,566			5,761			5,768			5,858			255			5			(37	)		(1	)		5,634			5,908			(274	)		(5	)

Total noninterest-earning assets		11,495			11,156			11,399			11,421			11,529			339			3			(34	)		—			11,268			14,491			(3,223	)		(22	)

TOTAL ASSETS	$	128,691		$	127,148		$	123,904		$	120,393		$	117,386		$	1,543			1		$	11,305			10		$	126,598		$	121,026		$	5,572			5


LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Checking with interest	$	15,155		$	13,805		$	13,317		$	13,925		$	13,997		$	1,350			10	%	$	1,158			8	%	$	14,099		$	14,154		($	55	)		—	%
Money market & savings		40,096			38,418			38,919			41,838			42,237			1,678			4			(2,141	)		(5	)		39,149			42,823			(3,674	)		(9	)
Term deposits		10,596			9,416			9,334			11,254			11,311			1,180			13			(715	)		(6	)		9,786			11,270			(1,484	)		(13	)

Total interest-bearing deposits		65,847			61,639			61,570			67,017			67,545			4,208			7			(1,698	)		(3	)		63,034			68,247			(5,213	)		(8	)
Interest-bearing deposits held for sale		—			3,675			4,233			—			—			(3,675	)		(100	)		—			—			2,621			—			2,621			—
Federal funds purchased and securities sold under agreements to repurchase¹		6,305			5,709			5,707			4,100			1,634			596			10			4,671			286			5,908			1,827			4,081			223
Other short-term borrowed funds		6,740			6,027			3,637			412			16			713			12			6,724			NM			5,479			207			5,272			NM
Long-term borrowed funds		1,951			1,419			1,405			1,158			721			532			37			1,230			171			1,594			635			959			151

Total borrowed funds		14,996			13,155			10,749			5,670			2,371			1,841			14			12,625			532			12,981			2,669			10,312			386

Total interest-bearing liabilities		80,843			78,469			76,552			72,687			69,916			2,374			3			10,927			16			78,636			70,916			7,720			11
Total demand deposits		25,829			25,984			24,796			26,167			25,598			(155	)		(1	)		231			1			25,540			25,140			400			2
Demand deposits held for sale		—			868			997			—			—			(868	)		(100	)		—			—			618			—			618			—
Other liabilities		2,608			2,220			2,189			2,175			2,245			388			17			363			16			2,341			2,303			38			2

TOTAL LIABILITIES		109,280			107,541			104,534			101,029			97,759			1,739			2			11,521			12			107,135			98,359			8,776			9

STOCKHOLDERS’ EQUITY		19,411			19,607			19,370			19,364			19,627			(196	)		(1	)		(216	)		(1	)		19,463			22,667			(3,204	)		(14	)

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	128,691		$	127,148		$	123,904		$	120,393		$	117,386		$	1,543			1		$	11,305			10		$	126,598		$	121,026		$	5,572			5

Memo: Total average tangible common equity²	$	12,913		$	13,093		$	12,838		$	12,822		$	13,067		($	180	)		(1	)	($	154	)		(1	)	$	12,948		$	13,343		($	395	)		(3	)

Total deposits (interest-bearing and demand)	$	91,676		$	92,166		$	91,596		$	93,184		$	93,143		($	490	)		(1	)	$	(1,467	)		(2	)	$	91,813		$	93,387		($	1,574	)		(2	)

¹	Balances are net of certain short-term receivables associated with reverse repurchase agreements; interest expense includes the full cost of the repurchase agreements and certain hedging costs.

²	Total average tangible common equity is a non-GAAP financial measure. For further information on these measures, refer to pages 30-36.

AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS, CONTINUED

(dollars in millions, except rates)


	QUARTERLY TRENDS																									FOR THE NINE MONTHS ENDED SEPT 30,
AVERAGE ANNUALIZED YIELDS & RATES	3Q14					2Q14					1Q14					4Q13					3Q13					2014					2013
	Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense
INTEREST-EARNING ASSETS:
Interest-bearing deposits in banks		0.23	%	$	2		0.23	%	$	1		0.23	%	$	1		0.33	%	$	1		0.36	%	$	2		0.23	%	$	4		0.49	%	$	9

Taxable investment securities		2.51			155		2.51			154		2.56			149		2.48			130		2.50			120		2.52			458		2.51			348
Non-taxable investment securities		2.59			—		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—		2.68			—

Total investment securities		2.51			155		2.51			154		2.57			149		2.48			130		2.50			120		2.52			458		2.51			348


Commercial		2.89			223		3.05			229		3.01			219		3.03			225		3.20			233		2.98			671		3.12			674
Commercial real estate		2.46			46		2.49			45		2.58			45		2.62			46		2.62			43		2.51			134		2.69			132
Leases		2.68			25		2.74			25		2.84			26		2.84			26		3.01			26		2.75			77		3.12			80

Total commercial		2.80			294		2.95			299		2.92			290		2.94			297		3.08			302		2.88			882		3.04			886


Home equity lines of credit		2.87			117		2.85			115		2.85			114		2.85			121		2.83			121		2.86			347		2.83			364
Residential mortgage		3.92			108		4.08			106		3.98			98		3.86			90		3.91			87		3.99			312		3.99			270
Home equity loans		5.65			72		5.67			76		5.63			79		5.64			84		5.64			87		5.68			228		5.73			278
Automobile		2.57			74		2.54			67		2.54			59		2.57			58		2.56			57		2.53			200		2.68			177
Student and other installment loans		5.90			47		5.56			47		5.49			48		5.54			49		5.53			50		5.64			142		5.51			152
Credit cards		9.99			42		9.92			41		10.31			42		10.16			44		10.55			44		10.09			124		10.56			131

Total retail		3.78			460		3.81			452		3.85			440		3.82			446		3.84			446		3.80			1,353		3.91			1,372

Total loans and leases		3.33			754		3.40			751		3.41			730		3.42			743		3.50			748		3.38			2,235		3.52			2,258
Loans held for sale		3.46			2		3.40			1		3.29			1		3.45			2		3.23			3		3.30			4		2.99			10
Other loans held for sale		5.44			—		3.90			10		4.21			12		—			—		—			—		4.08			22		—			—

Total interest-earning assets		3.08			913		3.16			917		3.19			893		3.18			876		3.27			873		3.14			2,723		3.28			2,625

INTEREST-BEARING LIABILITIES:
Checking with interest		0.09			4		0.06			2		0.06			2		0.06			2		0.06			2		0.07			8		0.06			6
Money market & savings		0.21			21		0.17			16		0.17			16		0.19			20		0.22			24		0.18			54		0.26			85
Term deposits		0.61			16		0.67			16		0.65			15		0.64			18		1.13			32		0.63			46		1.01			85

Total interest-bearing deposits		0.25			41		0.22			34		0.22			33		0.24			40		0.34			58		0.23			108		0.34			176
Interest-bearing deposits held for sale		—			—		0.21			2		0.23			2		—			—		—			—		0.22			4		—			—

Federal funds purchased and securities sold under agreements to repurchase¹		0.54			9		0.09			1		1.02			15		4.02			42		8.38			35		0.55			25		10.83			150
Other short-term borrowed funds		1.21			21		2.00			30		2.07			19		0.80			1		53.87			2		1.69			70		2.29			4
Long-term borrowed funds		4.39			22		4.63			17		4.61			16		4.70			14		4.42			8		4.51			55		3.38			16

Total borrowed funds		1.34			52		1.46			48		1.84			50		3.93			57		7.48			45		1.52			150		8.39			170

Total interest-bearing liabilities		0.45			93		0.43			84		0.45			85		0.52			97		0.57			103		0.44			262		0.64			346

INTEREST RATE SPREAD		2.63	%				2.73	%				2.74	%				2.66	%				2.70	%				2.70	%				2.64	%
NET INTEREST MARGIN		2.77					2.87					2.89					2.83					2.88					2.84					2.85

Memo: Total deposit costs		0.18			41		0.15			36		0.16			35		0.17			40		0.25			58		0.16			112		0.25			176

¹	Balances are net of certain short-term receivables associated with reverse repurchase agreements; interest expense includes the full cost of the repurchase agreements and certain hedging costs.

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING

(dollars in millions, except ratios)


	THIRD QUARTER 2014												SECOND QUARTER 2014												CHANGE
																									3Q14 from 2Q14
	Consumer Banking			Commercial Banking			Other¹			Consolidated			Consumer Banking			Commercial Banking			Other¹			Consolidated			$			%

Net interest income	$	532		$	270		$	18		$	820		$	546		$	264		$	23		$	833		($	13	)		(2	)%
Noninterest income		226			104			11			341			236			107			297			640			(299	)		(47	)

Total revenue		758			374			29			1,161			782			371			320			1,473			(312	)		(21	)
Noninterest expense		609			162			39			810			655			157			136			948			(138	)		(15	)


Profit before provision for credit losses		149			212			(10	)		351			127			214			184			525			(174	)		(33	)
Provision for credit losses		66			—			11			77			59			(2	)		(8	)		49			28			57


Income (loss) before income tax expense (benefit)		83			212			(21	)		274			68			216			192			476			(202	)		(42	)

Income tax expense (benefit)		29			73			(17	)		85			24			75			64			163			(78	)		(48	)

Net income (loss)	$	54		$	139		($	4	)	$	189		$	44		$	141		$	128		$	313		($	124	)		(40	)


Average Balances
Total assets	$	49,012		$	38,854		$	40,825		$	128,691		$	48,556		$	38,022		$	40,570		$	127,148		$	1,543			1	%
Total loans and leases²		47,848			37,787			4,218			89,853			47,368			37,389			4,434			89,191			662			1
Deposits³		65,609			20,985			5,082			91,676			70,181			18,358			3,627			92,166			(490	)		(1	)
Interest-earning assets		47,885			37,927			31,384			117,196			47,397			37,505			31,090			115,992			1,204			1

Key Metrics
Net interest margin		4.40	%		2.82	%		NM			2.77	%		4.62	%		2.82	%		NM			2.87	%		(10) bps			—
Efficiency ratio⁴		80.42			43.35			NM			69.84			83.61			42.36			NM			64.33			551 bps			—
Loans-to-deposits ratio (average balances)		72.93			180.06			NM			98.01			67.49			203.67			NM			96.77			124 bps			—
Return on average total tangible assets⁴		0.44			1.42			NM			0.61			0.37			1.50			NM			1.04			(43) bps			—
Return on average tangible common equity⁴		4.57			13.10			NM			5.81			3.87			13.78			NM			9.59			(378) bps			—

Includes the financial impact of non-core, liquidating loan portfolios and other non-core assets, our treasury activities, wholesale funding activities, securities portfolio, community development assets and other unallocated assets, liabilities, revenues, provision for credit losses and expenses not attributed to our Consumer Banking or Commercial Banking segments.

²	Includes loans and leases held for sale.

³	Includes deposits held for sale.

⁴	These are non-GAAP financial measures. For further information on these measures, refer to pages 30-36.

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, (CONTINUED)

(dollars in millions, except ratios)


	THIRD QUARTER 2014												THIRD QUARTER 2013												CHANGE
																									3Q14 from 3Q13
	Consumer Banking			Commercial Banking			Other¹			Consolidated			Consumer Banking			Commercial Banking			Other¹			Consolidated			$			%

Net interest income (expense)	$	532		$	270		$	18		$	820		$	543		$	263		($	36	)	$	770		$	50			6	%
Noninterest income		226			104			11			341			246			93			44			383			(42	)		(11	)

Total revenue		758			374			29			1,161			789			356			8			1,153			8			1
Noninterest expense		609			162			39			810			622			156			10			788			22			3


Profit (loss) before provision for credit losses		149			212			(10	)		351			167			200			(2	)		365			(14	)		(4	)
Provision for credit losses		66			—			11			77			87			3			55			145			(68	)		(47	)


Income (loss) before income tax expense (benefit)		83			212			(21	)		274			80			197			(57	)		220			54			25

Income tax expense (benefit)		29			73			(17	)		85			28			70			(22	)		76			9			12

Net income (loss)	$	54		$	139		($	4	)	$	189		$	52		$	127		($	35	)	$	144		$	45			31


Average Balances
Total assets	$	49,012		$	38,854		$	40,825		$	128,691		$	46,169		$	35,019		$	36,198		$	117,386		$	11,305			10	%
Total loans and leases²		47,848			37,787			4,218			89,853			44,766			34,510			5,593			84,869			4,984			6
Deposits³		65,609			20,985			5,082			91,676			72,220			17,774			3,149			93,143			(1,467	)		(2	)
Interest-earning assets		47,885			37,927			31,384			117,196			44,795			34,644			26,418			105,857			11,339			11

Key Metrics
Net interest margin		4.40	%		2.82	%		NM			2.77	%		4.81	%		3.02	%		NM			2.88	%		(11) bps			—
Efficiency ratio⁴		80.42			43.35			NM			69.84			78.83			43.69			NM			68.49			135 bps			—
Loans-to-deposits ratio (average balances)		72.93			180.06			NM			98.01			61.99			194.16			NM			91.12			689 bps			—
Return on average total tangible assets⁴		0.44			1.42			NM			0.61			0.45			1.46			NM			0.52			9 bps			—
Return on average tangible common equity⁴		4.57			13.10			NM			5.81			4.69			13.24			NM			4.34			147 bps			—

²	Includes loans and leases held for sale.

³	Includes deposits held for sale.

⁴	These are non-GAAP financial measures. For further information on these measures, refer to pages 30-36.

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, (CONTINUED)

(dollars in millions, except ratios)


	NINE MONTHS ENDED SEPTEMBER 30, 2014											NINE MONTHS ENDED SEPTEMBER 30, 2013												CHANGE
																								2014 from 2013
	Consumer Banking			Commercial Banking			Other¹		Consolidated			Consumer Banking			Commercial Banking			Other¹			Consolidated			$			%

Net interest income (expense)	$	1,615		$	790		$	56	$	2,461		$	1,633		$	771		($	125	)	$	2,279		$	182			8	%
Noninterest income		681			318			340		1,339			790			284			179			1,253			86			7

Total revenue		2,296			1,108			396		3,800			2,423			1,055			54			3,532			268			8
Noninterest expense		1,902			472			194		2,568			1,884			471			4,506			6,861			(4,293	)		(63	)

Profit (loss) before provision for credit losses		394			636			202		1,232			539			584			(4,452	)		(3,329	)		4,561			137
Provision for credit losses		195			(7	)		59		247			243			(21	)		125			347			(100	)		(29	)

Income (loss) before income tax expense (benefit)		199			643			143		985			296			605			(4,577	)		(3,676	)		4,661			127
Income tax expense (benefit)		69			222			26		317			104			214			(416	)		(98	)		415			423

Net income (loss)	$	130		$	421		$	117	$	668		$	192		$	391		($	4,161	)	($	3,578	)	$	4,246			119


Average Balances
Total assets	$	48,398		$	37,951		$	40,249	$	126,598		$	46,546		$	34,938		$	39,542		$	121,026		$	5,572			5	%
Total loans and leases²		47,203			37,263			4,424		88,890			45,213			34,297			6,200			85,710			3,180			4
Deposits³		68,834			18,941			4,038		91,813			72,405			17,481			3,501			93,387			(1,574	)		(2	)
Interest-earning assets		47,236			37,395			30,699		115,330			45,241			34,418			26,876			106,535			8,795			8

Key Metrics
Net interest margin		4.57	%		2.82	%		NM		2.84	%		4.83	%		3.00	%		NM			2.85	%		(1) bps			—
Efficiency ratio⁴		82.82			42.62			NM		67.58			77.78			44.64			NM			194.29			(12,671) bps			—
Loans-to-deposits ratio (average balances)		68.58			196.74			NM		96.82			62.44			196.20			NM			91.74			508 bps			—
Return on average total tangible assets⁴		0.36			1.48			NM		0.74			0.55			1.51			NM			(3.05	)		379 bps			—
Return on average tangible common equity⁴		3.76			13.67			NM		6.90			5.86			13.59			NM			(25.54	)		3,244 bps			—

²	Includes loans and leases held for sale.

³	Includes deposits held for sale.

⁴	These are non-GAAP financial measures. For further information on these measures, refer to pages 30-36.

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING

(dollars in millions, except ratios)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
CONSUMER BANKING																3Q14 Change																		2014 Change
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14						3Q13						2014			2013			2013
																$			%			$			%									$			%
Net interest income	$	532		$	546		$	537		$	543		$	543		($	14	)		(3	)%	($	11	)		(2	)%	$	1,615		$	1,633		($	18	)		(1	)%
Noninterest income		226			236			219			235			246			(10	)		(4	)		(20	)		(8	)		681			790			(109	)		(14	)

Total revenue		758			782			756			778			789			(24	)		(3	)		(31	)		(4	)		2,296			2,423			(127	)		(5	)
Noninterest expense		609			655			638			638			622			(46	)		(7	)		(13	)		(2	)		1,902			1,884			18			1


Profit before provision for credit losses		149			127			118			140			167			22			17			(18	)		(11	)		394			539			(145	)		(27	)
Provision for credit losses		66			59			70			65			87			7			12			(21	)		(24	)		195			243			(48	)		(20	)


Income before income tax expense		83			68			48			75			80			15			22			3			4			199			296			(97	)		(33	)

Income tax expense		29			24			16			25			28			5			21			1			4			69			104			(35	)		(34	)

Net income	$	54		$	44		$	32		$	50		$	52		$	10			23		$	2			4		$	130		$	192		($	62	)		(32	)


Average Balances
Total assets	$	49,012		$	48,556		$	47,610		$	46,225		$	46,169		$	456			1	%	$	2,843			6	%	$	48,398		$	46,546		$	1,852			4	%
Total loans and leases¹		47,848			47,368			46,154			44,790			44,766			480			1			3,082			7			47,203			45,213			1,990			4
Deposits²		65,609			70,181			70,769			71,423			72,220			(4,572	)		(7	)		(6,611	)		(9	)		68,834			72,405			(3,571	)		(5	)
Interest-earning assets		47,885			47,397			46,185			44,823			44,795			488			1			3,090			7			47,236			45,241			1,995			4

Key Metrics
Net interest margin		4.40	%		4.62	%		4.72	%		4.81	%		4.81	%		(22) bps			—			(41) bps			—			4.57	%		4.83	%		(26) bps			—
Efficiency ratio⁴		80.42			83.61			84.39			81.84			78.83			(319) bps			—			159 bps			—			82.82			77.78			504 bps			—
Loans-to-deposits ratio (average balances)		72.93			67.49			65.22			62.71			61.99			544 bps			—			1,094 bps			—			68.58			62.44			614 bps			—
Return on average total tangible assets⁴		0.44			0.37			0.27			0.42			0.45			7 bps			—			(1) bps			—			0.36			0.55			(19) bps			—
Return on average tangible common equity^3,4		4.57			3.87			2.81			4.40			4.69			70 bps			—			(12) bps			—			3.76			5.86			(210) bps			—

¹	Includes loans and leases held for sale.

²	Includes deposits held for sale.

³	Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

⁴	These are non-GAAP financial measures. For further information on these measures, refer to pages 30-36.

SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING

(dollars in millions, except ratios)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
COMMERCIAL BANKING																3Q14 Change																		2014 Change
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14						3Q13						2014			2013			2013
																$			%			$			%									$		%
Net interest income	$	270		$	264		$	256		$	260		$	263		$	6			2	%	$	7			3	%	$	790		$	771		$	19		2	%
Noninterest income		104			107			107			105			93			(3	)		(3	)		11			12			318			284			34		12

Total revenue		374			371			363			365			356			3			1			18			5			1,108			1,055			53		5
Noninterest expense		162			157			153			164			156			5			3			6			4			472			471			1		—


Profit before provision for credit losses		212			214			210			201			200			(2	)		(1	)		12			6			636			584			52		9
Provision for credit losses		—			(2	)		(5	)		14			3			2			100			(3	)		(100	)		(7	)		(21	)		14		67


Income before income tax expense		212			216			215			187			197			(4	)		(2	)		15			8			643			605			38		6
Income tax expense		73			75			74			64			70			(2	)		(3	)		3			4			222			214			8		4

Net income	$	139		$	141		$	141		$	123		$	127		($	2	)		(1	)	$	12			9		$	421		$	391		$	30		8


Average Balances
Total assets	$	38,854		$	38,022		$	36,955		$	36,094		$	35,019		$	832			2	%	$	3,835			11	%	$	37,951		$	34,938		$	3,013		9	%
Total loans and leases		37,787			37,389			36,577			35,684			34,510			398			1			3,277			9			37,263			34,297			2,966		9
Deposits		20,985			18,358			17,440			17,623			17,774			2,627			14			3,211			18			18,941			17,481			1,460		8
Interest-earning assets		37,927			37,505			36,716			35,820			34,644			422			1			3,283			9			37,395			34,418			2,977		9

Key Metrics
Net interest margin		2.82	%		2.82	%		2.83	%		2.88	%		3.02	%		— bps			—			(20) bps			—			2.82	%		3.00	%		(18) bps		—
Efficiency ratio²		43.35			42.36			42.13			44.73			43.69			99 bps			—			(34) bps			—			42.62			44.64			(202) bps		—
Loans-to-deposits ratio (average balances)		180.06			203.67			209.74			202.49			194.16			(2,361) bps			—			(1,410) bps			—			196.74			196.20			54 bps		—
Return on average total tangible assets²		1.42			1.50			1.54			1.33			1.46			(8) bps			—			(4) bps			—			1.48			1.51			(3) bps		—
Return on average tangible common equity^1,2		13.10			13.78			14.17			12.10			13.24			(68) bps			—			(14) bps			—			13.67			13.59			8 bps		—

¹	Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

²	These are non-GAAP financial measures. For further information on these measures, refer to pages 30-36.

FINANCIAL HIGHLIGHTS - OTHER

(dollars in millions)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
OTHER¹																3Q14 Change																	2014 Change
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14						3Q13						2014		2013			2013
																$			%			$			%								$			%
Net interest income (expense)	$	18		$	23		$	15		($	24	)	($	36	)	($	5	)		(22	)%	$	54			150	%	$	56	($	125	)	$	181			145	%
Noninterest income		11			297			32			39			44			(286	)		(96	)		(33	)		(75	)		340		179			161			90

Total revenue		29			320			47			15			8			(291	)		(91	)		21			263			396		54			342			633

Noninterest expense		39			136			19			16			10			(97	)		(71	)		29			290			194		4,506			(4,312	)		(96	)


Profit (loss) before provision for credit losses		(10	)		184			28			(1	)		(2	)		(194	)		(105	)		(8	)		(400	)		202		(4,452	)		4,654			105
Provision for credit losses		11			(8	)		56			53			55			19			238			(44	)		(80	)		59		125			(66	)		(53	)


Income (loss) before income tax expense (benefit)		(21	)		192			(28	)		(54	)		(57	)		(213	)		(111	)		36			63			143		(4,577	)		4,720			103

Income tax expense (benefit)		(17	)		64			(21	)		(33	)		(22	)		(81	)		(127	)		5			23			26		(416	)		442			106

Net income (loss)	($	4	)	$	128		($	7	)	($	21	)	($	35	)	($	132	)		(103	)	$	31			89		$	117	($	4,161	)	$	4,278			103


Average Balances
Total assets	$	40,825		$	40,570		$	39,339		$	38,074		$	36,198		$	255			1	%	$	4,627			13	%	$	40,249	$	39,542		$	707			2	%
Total loans and leases		4,218			4,434			4,620			5,578			5,593			(216	)		(5	)		(1,375	)		(25	)		4,424		6,200			(1,776	)		(29	)
Deposits		5,082			3,627			3,387			4,138			3,149			1,455			40			1,933			61			4,038		3,501			537			15
Interest-earning assets		31,384			31,090			29,604			28,329			26,418			294			1			4,966			19			30,699		26,876			3,823			14

FINANCIAL HIGHLIGHTS - CONSOLIDATED

(dollars in millions, except ratios)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
CONSOLIDATED																3Q14 Change																		2014 Change
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14						3Q13						2014			2013			2013
																$			%			$			%									$			%
Net interest income	$	820		$	833		$	808		$	779		$	770		($	13	)		(2	)%	$	50			6	%	$	2,461		$	2,279		$	182			8	%
Noninterest income		341			640			358			379			383			(299	)		(47	)		(42	)		(11	)		1,339			1,253			86			7

Total revenue		1,161			1,473			1,166			1,158			1,153			(312	)		(21	)		8			1			3,800			3,532			268			8

Noninterest expense		810			948			810			818			788			(138	)		(15	)		22			3			2,568			6,861			(4,293	)		(63	)


Profit (loss) before provision for credit losses		351			525			356			340			365			(174	)		(33	)		(14	)		(4	)		1,232			(3,329	)		4,561			137
Provision for credit losses		77			49			121			132			145			28			57			(68	)		(47	)		247			347			(100	)		(29	)


Income (loss) before income tax expense (benefit)		274			476			235			208			220			(202	)		(42	)		54			25			985			(3,676	)		4,661			127

Income tax expense (benefit)		85			163			69			56			76			(78	)		(48	)		9			12			317			(98	)		415			423

Net income (loss)	$	189		$	313		$	166		$	152		$	144		($	124	)		(40	)	$	45			31		$	668		($	3,578	)	$	4,246			119


Average Balances
Total assets	$	128,691		$	127,148		$	123,904		$	120,393		$	117,386		$	1,543			1	%	$	11,305			10	%	$	126,598		$	121,026		$	5,572			5	%
Total loans and leases¹		89,853			89,191			87,351			86,052			84,869			662			1			4,984			6			88,890			85,710			3,180			4
Deposits²		91,676			92,166			91,596			93,184			93,143			(490	)		(1	)		(1,467	)		(2	)		91,813			93,387			(1,574	)		(2	)
Interest-earning assets		117,196			115,992			112,505			108,972			105,857			1,204			1			11,339			11			115,330			106,535			8,795			8

Key Metrics
Net interest margin		2.77	%		2.87	%		2.89	%		2.83	%		2.88	%		(10) bps			—			(11) bps			—			2.84	%		2.85	%		(1) bps			—
Efficiency ratio³		69.84			64.33			69.43			70.62			68.49			551 bps			—			135 bps			—			67.58			194.29			(12,671) bps			—
Loans-to-deposits ratio (average balances)		98.01			96.77			95.37			92.35			91.12			124 bps			—			689 bps			—			96.82			91.74			508 bps			—
Return on average total tangible assets³		0.61			1.04			0.57			0.53			0.52			(43) bps			—			9 bps			—			0.74			(3.05	)		379 bps			—
Return on average tangible common equity³		5.81			9.59			5.24			4.71			4.34			(378) bps			—			147 bps			—			6.90			(25.54	)		3,244 bps			—

¹	Includes loans and leases held for sale.

²	Includes deposits held for sale.

³	These are non-GAAP financial measures. For further information on these measures, refer to pages 30-36.

SEGMENT FINANCIAL HIGHLIGHTS

(dollars in millions)


	QUARTERLY TRENDS																									FOR THE NINE MONTHS ENDED SEPTEMBER 30,
														3Q14 Change																	2014 Change
	3Q14			2Q14		1Q14		4Q13			3Q13			2Q14						3Q13						2014		2013			2013
														$			%			$			%								$			%
Net interest income:
Consumer Banking	$	532		$	546	$	537	$	543		$	543		($	14	)		(3	)%	($	11	)		(2	%)	$	1,615	$	1,633		($	18	)		(1	)%
Commercial Banking		270			264		256		260			263			6			2			7			3			790		771			19			2
Other		18			23		15		(24	)		(36	)		(5	)		(22	)		54			150			56		(125	)		181			145

Net interest income	$	820		$	833	$	808	$	779		$	770		($	13	)		(2	)	$	50			6		$	2,461	$	2,279		$	182			8


Noninterest income:
Consumer Banking	$	226		$	236	$	219	$	235		$	246		($	10	)		(4	)%	($	20	)		(8	)%	$	681	$	790		($	109	)		(14	)%
Commercial Banking		104			107		107		105			93			(3	)		(3	)		11			12			318		284			34			12
Other		11			297		32		39			44			(286	)		(96	)		(33	)		(75	)		340		179			161			90

Noninterest income	$	341		$	640	$	358	$	379		$	383		($	299	)		(47	)	($	42	)		(11	)	$	1,339	$	1,253		$	86			7


Total revenue:
Consumer Banking	$	758		$	782	$	756	$	778		$	789		($	24	)		(3	)%	($	31	)		(4	)%	$	2,296	$	2,423		($	127	)		(5	)%
Commercial Banking		374			371		363		365			356			3			1			18			5			1,108		1,055			53			5
Other		29			320		47		15			8			(291	)		(91	)		21			263			396		54			342			633

Total revenue	$	1,161		$	1,473	$	1,166	$	1,158		$	1,153		($	312	)		(21	)	$	8			1		$	3,800	$	3,532		$	268			8


Noninterest expense:
Consumer Banking	$	609		$	655	$	638	$	638		$	622		($	46	)		(7	)%	($	13	)		(2	%)	$	1,902	$	1,884		$	18			1	%
Commercial Banking		162			157		153		164			156			5			3			6			4			472		471			1			—
Other		39			136		19		16			10			(97	)		(71	)		29			290			194		4,506			(4,312	)		(96	)

Noninterest expense	$	810		$	948	$	810	$	818		$	788		($	138	)		(15	)	$	22			3		$	2,568	$	6,861		($	4,293	)		(63	)


Profit (loss) before provision for credit losses:
Consumer Banking	$	149		$	127	$	118	$	140		$	167		$	22			17	%	($	18	)		(11	)%	$	394	$	539		($	145	)		(27	)%
Commercial Banking		212			214		210		201			200			(2	)		(1	)		12			6			636		584			52			9
Other		(10	)		184		28		(1	)		(2	)		(194	)		(105	)		(8	)		(400	)		202		(4,452	)		4,654			105

Profit (loss) before provision for credit losses	$	351		$	525	$	356	$	340		$	365		($	174	)		(33	)	($	14	)		(4	)	$	1,232	($	3,329	)	$	4,561			137

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
	3Q14			2Q14			1Q14			4Q13			3Q13			3Q14 Change																		2014 Change
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14						3Q13						2014			2013			2013
																$			%			$			%									$			%
Provision for credit losses:
Consumer Banking	$	66		$	59		$	70		$	65		$	87		$	7			12	%	($	21	)		(24	)%	$	195		$	243		($	48	)		(20	)%
Commercial Banking		—			(2	)		(5	)		14			3			2			100			(3	)		(100	)		(7	)		(21	)		14			67
Other		11			(8	)		56			53			55			19			238			(44	)		(80	)		59			125			(66	)		(53	)

Provision for credit losses	$	77		$	49		$	121		$	132		$	145		$	28			57		($	68	)		(47	)	$	247		$	347		($	100	)		(29	)


Income (loss) before income tax expense (benefit):
Consumer Banking	$	83		$	68		$	48		$	75		$	80		$	15			22	%	$	3			4	%	$	199		$	296		($	97	)		(33	)%
Commercial Banking		212			216			215			187			197			(4	)		(2	)		15			8			643			605			38			6
Other		(21	)		192			(28	)		(54	)		(57	)		(213	)		(111	)		36			63			143			(4,577	)		4,720			103

Income (loss) before income tax expense (benefit)	$	274		$	476		$	235		$	208		$	220		($	202	)		(42	)	$	54			25		$	985		($	3,676	)	$	4,661			127


Income tax expense (benefit):
Consumer Banking	$	29		$	24		$	16		$	25		$	28		$	5			21	%	$	1			4	%	$	69		$	104		($	35	)		(34	)%
Commercial Banking		73			75			74			64			70			(2	)		(3	)		3			4			222			214			8			4
Other		(17	)		64			(21	)		(33	)		(22	)		(81	)		(127	)		5			23			26			(416	)		442			106

Income tax expense (benefit)	$	85		$	163		$	69		$	56		$	76		($	78	)		(48	)	$	9			12		$	317		($	98	)	$	415			423


Net income (loss):
Consumer Banking	$	54		$	44		$	32		$	50		$	52		$	10			23	%	$	2			4	%	$	130		$	192		($	62	)		(32	)%
Commercial Banking		139			141			141			123			127			(2	)		(1	)		12			9			421			391			30			8
Other		(4	)		128			(7	)		(21	)		(35	)		(132	)		(103	)		31			89			117			(4,161	)		4,278			103

Net income (loss)	$	189		$	313		$	166		$	152		$	144		($	124	)		(40	)	$	45			31		$	668		($	3,578	)	$	4,246			119

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																						FOR THE NINE MONTHS ENDED SEPTEMBER 30,
AVERAGE BALANCES											3Q14 Change																2014 Change
	3Q14		2Q14		1Q14		4Q13		3Q13		2Q14						3Q13						2014		2013		2013
											$			%			$			%							$			%
Total assets:
Consumer Banking	$	49,012	$	48,556	$	47,610	$	46,225	$	46,169	$	456			1	%	$	2,843			6	%	$	48,398	$	46,546	$	1,852			4	%
Commercial Banking		38,854		38,022		36,955		36,094		35,019		832			2			3,835			11			37,951		34,938		3,013			9
Other		40,825		40,570		39,339		38,074		36,198		255			1			4,627			13			40,249		39,542		707			2

Total assets	$	128,691	$	127,148	$	123,904	$	120,393	$	117,386	$	1,543			1		$	11,305			10		$	126,598	$	121,026	$	5,572			5


Loans and leases¹:
Consumer Banking	$	47,848	$	47,368	$	46,154	$	44,790	$	44,766	$	480			1	%	$	3,082			7	%	$	47,203	$	45,213	$	1,990			4	%
Commercial Banking		37,787		37,389		36,577		35,684		34,510		398			1			3,277			9			37,263		34,297		2,966			9
Other		4,218		4,434		4,620		5,578		5,593		(216	)		(5	)		(1,375	)		(25	)		4,424		6,200		(1,776	)		(29	)

Total loans and leases	$	89,853	$	89,191	$	87,351	$	86,052	$	84,869	$	662			1		$	4,984			6		$	88,890	$	85,710	$	3,180			4


Deposits²:
Consumer Banking	$	65,609	$	70,181	$	70,769	$	71,423	$	72,220	($	4,572	)		(7	)%	($	6,611	)		(9	)%	$	68,834	$	72,405	($	3,571	)		(5	)%
Commercial Banking		20,985		18,358		17,440		17,623		17,774		2,627			14			3,211			18			18,941		17,481		1,460			8
Other		5,082		3,627		3,387		4,138		3,149		1,455			40			1,933			61			4,038		3,501		537			15

Total deposits	$	91,676	$	92,166	$	91,596	$	93,184	$	93,143	($	490	)		(1	)	($	1,467	)		(2	)	$	91,813	$	93,387	($	1,574	)		(2	)


Interest-earning assets:
Consumer Banking	$	47,885	$	47,397	$	46,185	$	44,823	$	44,795	$	488			1	%	$	3,090			7	%	$	47,236	$	45,241	$	1,995			4	%
Commercial Banking		37,927		37,505		36,716		35,820		34,644		422			1			3,283			9			37,395		34,418		2,977			9
Other		31,384		31,090		29,604		28,329		26,418		294			1			4,966			19			30,699		26,876		3,823			14

Total interest-earning assets	$	117,196	$	115,992	$	112,505	$	108,972	$	105,857	$	1,204			1		$	11,339			11		$	115,330	$	106,535	$	8,795			8

¹	Includes loans and leases held for sale.

²	Includes deposits held for sale.

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED


	QUARTERLY TRENDS																							FOR THE NINE MONTHS ENDED SEPTEMBER 30,
KEY METRICS																3Q14 Change														2014 Change
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14				3Q13				2014			2013			2013
																bps				bps										bps
Net Interest Margin (NIM)
Consumer Banking		4.40	%		4.62	%		4.72	%		4.81	%		4.81	%		(22	)	—		(41	)	—		4.57	%		4.83	%		(26	)	—
Commercial Banking		2.82			2.82			2.83			2.88			3.02			—		—		(20	)	—		2.82			3.00			(18	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
NIM		2.77			2.87			2.89			2.83			2.88			(10	)	—		(11	)	—		2.84			2.85			(1	)	—

Efficiency Ratio³
Consumer Banking		80.42	%		83.61	%		84.39	%		81.84	%		78.83	%		(319	)	—		159		—		82.82	%		77.78	%		504		—
Commercial Banking		43.35			42.36			42.13			44.73			43.69			99		—		(34	)	—		42.62			44.64			(202	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
Efficiency Ratio		69.84			64.33			69.43			70.62			68.49			551		—		135		—		67.58			194.29			(12,671	)	—

Loans to Deposits Ratio (average balances) (LDR)¹
Consumer Banking		72.93	%		67.49	%		65.22	%		62.71	%		61.99	%		544		—		1,094		—		68.58	%		62.44	%		614		—
Commercial Banking		180.06			203.67			209.74			202.49			194.16			(2,361	)	—		(1,410	)	—		196.74			196.20			54		—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
LDR		98.01			96.77			95.37			92.35			91.12			124		—		689		—		96.82			91.74			508		—

Return on Average Total Tangible Assets (ROTA)³
Consumer Banking		0.44	%		0.37	%		0.27	%		0.42	%		0.45	%		7		—		(1	)	—		0.36	%		0.55	%		(19	)	—
Commercial Banking		1.42			1.50			1.54			1.33			1.46			(8	)	—		(4	)	—		1.48			1.51			(3	)	—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
ROTA		0.61			1.04			0.57			0.53			0.52			(43	)	—		9		—		0.74			(3.05	)		379		—

Return on Average Tangible Common Equity (ROTCE)^2,3
Consumer Banking		4.57	%		3.87	%		2.81	%		4.40	%		4.69	%		70		—		(12	)	—		3.76	%		5.86	%		(210	)	—
Commercial Banking		13.10			13.78			14.17			12.10			13.24			(68	)	—		(14	)	—		13.67			13.59			8		—
Other		NM			NM			NM			NM			NM			—		—		—		—		NM			NM			—		—
ROTCE		5.81			9.59			5.24			4.71			4.34			(378	)	—		147		—		6.90			(25.54	)		3,244		—

¹	Includes loans and leases and deposits held for sale.

²	Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

³	These are non-GAAP financial measures. For further information on these measures, refer to pages 30-36.

CREDIT-RELATED INFORMATION

(dollars in millions)


	AS OF										SEPT 30, 2014 CHANGE
	Sept 30, 2014		June 30, 2014		Mar 31, 2014		Dec 31, 2013		Sept 30, 2013		June 30, 2014						Sept 30, 2013
											$			%			$			%
CREDIT EXPOSURE:
Commercial	$	30,356	$	30,076	$	29,435	$	28,667	$	28,984	$	280			1	%	$	1,372			5	%
Commercial real estate		7,239		7,158		6,902		6,948		6,524		81			1			715			11
Leases		3,875		3,740		3,738		3,780		3,576		135			4			299			8

Total commercial		41,470		40,974		40,075		39,395		39,084		496			1			2,386			6
Residential, including originated home equity products		30,458		30,116		29,761		29,694		29,762		342			1			696			2
Home equity products serviced by others		1,870		1,972		2,075		2,171		2,281		(102	)		(5	)		(411	)		(18	)
Other secured retail		13,206		12,180		11,216		10,700		10,427		1,026			8			2,779			27
Unsecured retail		3,745		3,587		3,956		3,899		3,939		158			4			(194	)		(5	)

Total retail		49,279		47,855		47,008		46,464		46,409		1,424			3			2,870			6

Total loans and leases		90,749		88,829		87,083		85,859		85,493		1,920			2			5,256			6

Derivative receivable - commercial		542		627		621		647		731		(85	)		(14	)		(189	)		(26	)
Derivative receivable - retail		5		8		5		3		11		(3	)		(38	)		(6	)		(55	)

Total derivative receivable		547		635		626		650		742		(88	)		(14	)		(195	)		(26	)

Total credit-related assets		91,296		89,464		87,709		86,509		86,235		1,832			2			5,061			6

Undrawn commitments to extend credit - commercial		29,182		28,236		27,522		27,617		26,790		946			3			2,392			9
Financial standby letters of credit		2,498		2,622		2,646		2,556		2,798		(124	)		(5	)		(300	)		(11	)
Performance letters of credit		94		118		135		149		154		(24	)		(20	)		(60	)		(39	)
Commercial letters of credit		74		56		61		64		65		18			32			9			14
Marketing rights		51		51		51		54		54		—			—			(3	)		(6	)
Risk participation agreements		16		20		16		17		21		(4	)		(20	)		(5	)		(24	)

Total commercial lending-related arrangements		31,915		31,103		30,431		30,457		29,882		812			3			2,033			7

Undrawn commitments to extend credit - retail		26,151		26,117		26,536		26,370		26,401		34			—			(250	)		(1	)
Residential mortgage loans sold with recourse		11		12		13		13		14		(1	)		(8	)		(3	)		(21	)

Total retail lending-related arrangements		26,162		26,129		26,549		26,383		26,415		33			—			(253	)		(1	)

Total lending-related arrangements		58,077		57,232		56,980		56,840		56,297		845			1			1,780			3

Total credit exposure	$	149,373	$	146,696	$	144,689	$	143,349	$	142,532	$	2,677			2		$	6,841			5


Memo: Total credit exposure by product category
Commercial exposure	$	73,927	$	72,704	$	71,127	$	70,499	$	69,697	$	1,223			2	%	$	4,230			6	%
Retail exposure		75,446		73,992		73,562		72,850		72,835		1,454			2			2,611			4

Total credit exposure	$	149,373	$	146,696	$	144,689	$	143,349	$	142,532	$	2,677			2		$	6,841			5

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions, except ratios)


	AS OF															SEPT 30, 2014 CHANGE
	Sept 30, 2014			June 30, 2014			Mar 31, 2014			Dec 31, 2013			Sept 30, 2013			June 30, 2014						Sept 30, 2013
																$			%			$			%
NONPERFORMING ASSETS:
Commercial	$	93		$	63		$	73		$	96		$	102		$	30			48	%	($	9	)		(9	)%
Commercial real estate		83			130			155			169			238			(47	)		(36	)		(155	)		(65	)
Leases		—			2			2			—			—			(2	)		(100	)		—			—

Total commercial		176			195			230			265			340			(19	)		(10	)		(164	)		(48	)
Residential, including originated home equity products		770			876			973			981			1,169			(106	)		(12	)		(399	)		(34	)
Home equity products serviced by others		81			80			87			89			101			1			1			(20	)		(20	)
Other secured retail		22			18			23			26			26			4			22			(4	)		(15	)
Unsecured retail		30			31			50			55			55			(1	)		(3	)		(25	)		(45	)

Total retail		903			1,005			1,133			1,151			1,351			(102	)		(10	)		(448	)		(33	)

Nonperforming loans and leases¹		1,079			1,200			1,363			1,416			1,691			(121	)		(10	)		(612	)		(36	)


Commercial		3			4			4			10			13			(1	)		(25	)		(10	)		(77	)
Retail		39			37			41			40			37			2			5			2			5

Other real estate owned		42			41			45			50			50			1			2			(8	)		(16	)

Nonperforming assets	$	1,121		$	1,241		$	1,408		$	1,466		$	1,741		($	120	)		(10	)	($	620	)		(36	)


NONPERFORMING ASSETS BY PRODUCT CATEGORY:
Commercial	$	179		$	199		$	234		$	275		$	353		($	20	)		(10	)%	($	174	)		(49	)%
Retail		942			1,042			1,174			1,191			1,388			(100	)		(10	)		(446	)		(32	)

Nonperforming assets	$	1,121		$	1,241		$	1,408		$	1,466		$	1,741		($	120	)		(10	)	($	620	)		(36	)


ASSET QUALITY RATIOS
Allowance for loan and lease losses to loans and leases		1.32	%		1.36	%		1.45	%		1.42	%		1.43	%		(4) bps			—			(11) bps			—
Allowance for loan and lease losses to nonperforming loans and leases		111.30			100.84			92.34			86.17			72.06			1,046 bps			—			3,924 bps			—
Nonperforming loans and leases to loans and leases		1.19			1.35			1.57			1.65			1.98			(16) bps			—			(79) bps			—
Nonperforming assets to total assets		0.85			0.95			1.11			1.20			1.45			(10) bps			—			(60) bps			—

¹MEMO:
Accruing loans past due 90 days or more included above	$	8		$	12		$	42		$	33		$	44		($	4	)		(33	)%	($	36	)		(82	)%

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS																3Q14 Change																		2014 Change
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14						3Q13						2014			2013			2013
																$			%			$			%									$			%
GROSS CHARGE-OFFS:
Commercial	($	11	)	($	6	)	($	5	)	($	29	)	($	16	)	($	5	)		(83	)%	$	5			31	%	($	22	)	($	43	)	$	21			49	%
Commercial real estate		(5	)		(2	)		(1	)		(7	)		(7	)		(3	)		(150	)		2			29			(8	)		(29	)		21			72
Leases		—			—			—			—			—			—			—			—			—			—			—			—			—

Total commercial		(16	)		(8	)		(6	)		(36	)		(23	)		(8	)		(100	)		7			30			(30	)		(72	)		42			58
Residential, including originated home equity products		(45	)		(41	)		(52	)		(47	)		(70	)		(4	)		(10	)		25			36			(138	)		(186	)		48			26
Home equity products serviced by others		(17	)		(16	)		(21	)		(26	)		(33	)		(1	)		(6	)		16			48			(54	)		(120	)		66			55
Other secured retail		(24	)		(21	)		(20	)		(17	)		(20	)		(3	)		(14	)		(4	)		(20	)		(65	)		(57	)		(8	)		(14	)
Unsecured retail		(27	)		(31	)		(29	)		(35	)		(34	)		4			13			7			21			(87	)		(107	)		20			19

Total retail		(113	)		(109	)		(122	)		(125	)		(157	)		(4	)		(4	)		44			28			(344	)		(470	)		126			27

Total gross charge-offs	($	129	)	($	117	)	($	128	)	($	161	)	($	180	)	($	12	)		(10	)	$	51			28		($	374	)	($	542	)	$	168			31


GROSS RECOVERIES:
Commercial	$	7		$	18		$	6		$	10		$	7		($	11	)		(61	)%	$	—			—	%	$	31		$	36		($	5	)		(14	)%
Commercial real estate		5			3			8			8			10			2			67			(5	)		(50	)		16			32			(16	)		(50	)
Leases		—			—			—			—			1			—			—			(1	)		(100	)		—			1			(1	)		(100	)

Total commercial		12			21			14			18			18			(9	)		(43	)		(6	)		(33	)		47			69			(22	)		(32	)
Residential, including originated home equity products		16			10			14			16			16			6			60			—			—			40			39			1			3
Home equity products serviced by others		8			5			6			7			7			3			60			1			14			19			21			(2	)		(10	)
Other secured retail		4			8			2			—			3			(4	)		(50	)		1			33			14			12			2			17
Unsecured retail		1			5			5			5			5			(4	)		(80	)		(4	)		(80	)		11			15			(4	)		(27	)

Total retail		29			28			27			28			31			1			4			(2	)		(6	)		84			87			(3	)		(3	)

Total gross recoveries	$	41		$	49		$	41		$	46		$	49		($	8	)		(16	)	($	8	)		(16	)	$	131		$	156		($	25	)		(16	)


NET (CHARGE-OFFS) RECOVERIES:
Commercial	($	4	)	$	12		$	1		($	19	)	($	9	)	($	16	)		(133	)%	$	5			56	%	$	9		($	7	)	$	16			229	%
Commercial real estate		—			1			7			1			3			(1	)		(100	)		(3	)		(100	)		8			3			5			167
Leases		—			—			—			—			1			—			—			(1	)		(100	)		—			1			(1	)		(100	)

Total commercial		(4	)		13			8			(18	)		(5	)		(17	)		(131	)		1			20			17			(3	)		20			667
Residential, including originated home equity products		(29	)		(31	)		(38	)		(31	)		(54	)		2			6			25			46			(98	)		(147	)		49			33
Home equity products serviced by others		(9	)		(11	)		(15	)		(19	)		(26	)		2			18			17			65			(35	)		(99	)		64			65
Other secured retail		(20	)		(13	)		(18	)		(17	)		(17	)		(7	)		(54	)		(3	)		(18	)		(51	)		(45	)		(6	)		(13	)
Unsecured retail		(26	)		(26	)		(24	)		(30	)		(29	)		—			—			3			10			(76	)		(92	)		16			17

Total retail		(84	)		(81	)		(95	)		(97	)		(126	)		(3	)		(4	)		42			33			(260	)		(383	)		123			32

Total net (charge-offs) recoveries	($	88	)	($	68	)	($	87	)	($	115	)	($	131	)	($	20	)		(29	)	$	43			33		($	243	)	($	386	)	$	143			37

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions, except rates)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																3Q14 Change																		2014 Change
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14						3Q13						2014			2013			2013
																$			%			$			%									$			%
ANNUALIZED NET (CHARGE-OFF) RECOVERY RATES:
Commercial		(0.04	)%		0.15	%		0.02	%		(0.25	)%		(0.12	)%		(19) bps			—			8 bps			—			0.04	%		(0.04	)%		8 bps			—
Commercial real estate		(0.06	)		0.06			0.43			0.02			0.19			(12) bps			—			(25) bps			—			0.14			0.07			7 bps			—
Leases		—			0.03			—			0.01			0.10			(3) bps			—			(10) bps			—			0.01			0.05			(4) bps			—
Total commercial		(0.04	)		0.12			0.09			(0.18	)		(0.05	)		(16) bps			—			1 bps			—			0.05			(0.01	)		6 bps			—
Residential, including originated home equity products		(0.38	)		(0.41	)		(0.53	)		(0.41	)		(0.72	)		3 bps			—			34 bps			—			(0.44	)		(0.65	)		21 bps			—
Home equity products serviced by others		(2.04	)		(2.11	)		(2.78	)		(3.37	)		(4.25	)		7 bps			—			221 bps			—			(2.32	)		(5.10	)		278 bps			—
Other secured retail		(0.67	)		(0.45	)		(0.69	)		(0.63	)		(0.67	)		(22) bps			—			— bps			—			(0.60	)		(0.59	)		(1) bps			—
Unsecured retail		(2.44	)		(2.77	)		(2.54	)		(3.13	)		(2.98	)		33 bps			—			54 bps			—			(2.59	)		(3.15	)		56 bps			—
Total retail		(0.68	)		(0.68	)		(0.84	)		(0.83	)		(1.08	)		— bps			—			40 bps			—			(0.73	)		(1.09	)		36 bps			—
Total loans and leases		(0.38	)		(0.31	)		(0.41	)		(0.53	)		(0.61	)		(7) bps			—			23 bps			—			(0.37	)		(0.61	)		24 bps			—

Memo: Average loans:
Commercial	$	30,186		$	29,674		$	29,108		$	29,058		$	28,522		$	512			2	%	$	1,664			6	%	$	29,666		$	28,519		$	1,147			4	%
Commercial real estate		7,216			7,082			6,898			6,859			6,435			134			2			781			12			7,067			6,469			598			9
Leases		3,789			3,716			3,723			3,619			3,505			73			2			284			8			3,743			3,410			333			10

Total commercial		41,191			40,472			39,729			39,536			38,462			719			2			2,729			7			40,476			38,398			2,078			5
Residential, including originated home equity products		30,316			29,933			29,711			29,814			29,553			383			1			763			3			29,986			30,126			(140	)		—
Home equity products serviced by others		1,908			2,015			2,113			2,212			2,402			(107	)		(5	)		(494	)		(21	)		2,012			2,586			(574	)		(22	)
Other secured retail		12,591			11,743			10,678			10,348			10,226			848			7			2,365			23			11,758			10,298			1,460			14
Unsecured retail		3,644			3,856			3,901			3,906			3,847			(212	)		(5	)		(203	)		(5	)		3,797			3,858			(61	)		(2	)

Total retail		48,459			47,547			46,403			46,280			46,028			912			2			2,431			5			47,553			46,868			685			1

Total loans and leases	$	89,650		$	88,019		$	86,132		$	85,816		$	84,490		$	1,631			2		$	5,160			6		$	88,029		$	85,266		$	2,763			3

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																3Q14 Change																		2014 Change
SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14						3Q13						2014			2013			2013
																$			%			$			%									$			%
Allowance for loan and lease losses - beginning	$	1,210		$	1,259		$	1,221		$	1,219		$	1,200		($	49	)		(4	)%	$	10			1	%	$	1,221		$	1,255		($	34	)		(3	)%
Charge-offs:
Commercial		(16	)		(8	)		(6	)		(36	)		(23	)		(8	)		(100	)		7			30			(30	)		(72	)		42			58
Retail		(113	)		(109	)		(122	)		(125	)		(157	)		(4	)		(4	)		44			28			(344	)		(470	)		126			27

Total charge-offs		(129	)		(117	)		(128	)		(161	)		(180	)		(12	)		(10	)		51			28			(374	)		(542	)		168			31
Recoveries:
Commercial		12			21			14			18			18			(9	)		(43	)		(6	)		(33	)		47			69			(22	)		(32	)
Retail		29			28			27			28			31			1			4			(2	)		(6	)		84			87			(3	)		(3	)

Total recoveries		41			49			41			46			49			(8	)		(16	)		(8	)		(16	)		131			156			(25	)		(16	)

Net charge-offs		(88	)		(68	)		(87	)		(115	)		(131	)		(20	)		(29	)		43			33			(243	)		(386	)		143			37
Provision for loan and lease losses:
Commercial		38			(32	)		21			32			(2	)		70			219			40			2,000			27			(51	)		78			153
Retail		41			51			104			67			94			(10	)		(20	)		(53	)		(56	)		196			329			(133	)		(40	)
Unallocated		—			—			—			31			58			—			—			(58	)		(100	)		—			72			(72	)		(100	)

Total provision for loan and lease losses		79			19			125			130			150			60			316			(71	)		(47	)		223			350			(127	)		(36	)
Sale/Other					—			—			(13	)		—			—			—			—			—			—			—			—			—

Allowance for loan and lease losses - ending	$	1,201		$	1,210		$	1,259		$	1,221		$	1,219		($	9	)		(1	)	($	18	)		(1	)	$	1,201		$	1,219		($	18	)		(1	)


Reserve for unfunded lending commitments - beginning	$	65		$	35		$	39		$	37		$	42		$	30			86	%	$	23			55	%	$	39		$	40		($	1	)		(3	)%
Provision for unfunded lending commitments		(2	)		30			(4	)		2			(5	)		(32	)		(107	)		3			60			24			(3	)		27			900

Reserve for unfunded lending commitments - ending		63			65			35			39			37			(2	)		(3	)		26			70			63			37			26			70



Total allowance for credit losses - ending	$	1,264		$	1,275		$	1,294		$	1,260		$	1,256		($	11	)		(1	)%	$	8			1	%	$	1,264		$	1,256		$	8			1	%

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)


	AS OF										SEPT 30, 2014 CHANGE
	Sept 30, 2014		June 30, 2014		Mar 31, 2014		Dec 31, 2013		Sept 30, 2013		June 30, 2014						Sept 30, 2013
ALLOWANCE COMPONENTS											$			%			$			%
ALLOWANCE FOR CREDIT LOSSES
Individually evaluated		14	$	23	$	22	$	23	$	36	($	9	)		(39	)%	($	22	)		(61	)%
Formula-based evaluation		591		550		540		514		456		41			7			135			30

Total commercial		605		573		562		537		492		32			6			113			23

Individually evaluated		116		116		116		108		110		—			—			6			5
Formula-based evaluation		543		586		616		615		493		(43	)		(7	)		50			10

Total retail		659		702		732		723		603		(43	)		(6	)		56			9

Unallocated		—		—		—		—		161		—			—			(161	)		(100	)

Total allowance for credit losses	$	1,264	$	1,275	$	1,294	$	1,260	$	1,256	($	11	)		(1	)	$	8			1

CAPITAL AND RATIOS

(dollars in millions, except ratios)


	AS OF															SEPT 30, 2014 CHANGE												FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																																		2014 Change
CAPITAL AND RATIOS	Sept 30, 2014			June 30, 2014			Mar 31, 2014			Dec 31, 2013			Sept 30, 2013			June 30, 2014						Sept 30, 2013						2014			2013			2013
																$			%			$			%									$			%
CAPITAL RATIOS AND COMPONENTS¹ (preliminary)
Tier 1 capital	$	13,330		$	13,448		$	13,460		$	13,301		$	13,499		($	118	)		(1	%)	($	169	)		(1	)%
Total capital		16,612			16,400			16,066			15,885			15,726			212			1			886			6
Tier 1 common capital²		13,330			13,448			13,460			13,301			13,489			(118	)		(1	)		(159	)		(1	)
Risk-weighted assets		103,207			101,397			100,368			98,634			96,735			1,810			2			6,472			7
Adjusted average assets³		122,521			121,276			118,075			114,422			111,824			1,245			1			10,697			10
Tier 1 capital ratio		12.9	%		13.3	%		13.4	%		13.5	%		14.0	%
Total capital ratio		16.1			16.2			16.0			16.1			16.3
Leverage ratio		10.9			11.1			11.4			11.6			12.1
Tier 1 common equity ratio²		12.9			13.3			13.4			13.5			13.9
Proforma Basel III common equity Tier 1 capital ratio⁴		12.5			13.0			13.1			13.1			13.6

TANGIBLE COMMON EQUITY (period-end):
Stockholders’ equity	$	19,383		$	19,597		$	19,442		$	19,196		$	19,413		($	214	)		(1	%)	($	30	)		—	%	$	19,383		$	19,413		($	30	)		—	%
Less: Goodwill		(6,876	)		(6,876	)		(6,876	)		(6,876	)		(6,876	)		—			—			—			—			(6,876	)		(6,876	)		—			—
Less: Other intangible assets		(6	)		(7	)		(7	)		(8	)		(9	)		1			14			3			33			(6	)		(9	)		3			33
Add: Deferred tax liabilities⁵		399			384			366			350			333			15			4			66			20			399			333			66			20

Total tangible common equity⁶	$	12,900		$	13,098		$	12,925		$	12,662		$	12,861		($	198	)		(2	)	$	39			—		$	12,900		$	12,861		$	39			—


TANGIBLE COMMON EQUITY (average):
Stockholders’ equity	$	19,411		$	19,607		$	19,370		$	19,364		$	19,627		($	196	)		(1	%)	($	216	)		(1	)%	$	19,463		$	22,667		($	3,204	)		(14	)%
Less: Goodwill		(6,876	)		(6,876	)		(6,876	)		(6,876	)		(6,876	)		—			—			—			—			(6,876	)		(9,800	)		2,924			30
Less: Other intangible assets		(6	)		(7	)		(7	)		(8	)		(9	)		1			14			3			33			(7	)		(10	)		3			30
Add: Deferred tax liabilities⁵		384			369			351			342			325			15			4			59			18			368			486			(118	)		(24	)

Total tangible common equity⁴	$	12,913		$	13,093		$	12,838		$	12,822		$	13,067		($	180	)		(1	)	($	154	)		(1	)	$	12,948		$	13,343		($	395	)		(3	)


INTANGIBLE ASSETS (period-end):
Goodwill	$	6,876		$	6,876		$	6,876		$	6,876		$	6,876		$	—			—	%	$	—			—	%	$	6,876		$	6,876		$	—			—	%
Trademark & patent		6			7			7			8			9			(1	)		(14	)		(3	)		(33	)		6			9			(3	)		(33	)

Total intangible assets	$	6,882		$	6,883		$	6,883		$	6,884		$	6,885		($	1	)		—		($	3	)		—		$	6,882		$	6,885		($	3	)		—

¹	Capital ratios and associated components are prepared on a Basel I basis, except as noted.

²	Tier 1 common capital represents Tier 1 capital, excluding qualifying restricted core capital elements. The Tier 1 common equity ratio is calculated as Tier 1 common capital divided by risk-weighted assets.

Adjusted average assets include quarterly average assets, less deductions for disallowed goodwill and other intangibles assets, net of deferred tax liabilities related to tax deductible goodwill, and the accumulated other comprehensive income impact related to the adoption of post-retirement benefit plan guidance under GAAP.

⁴	This is a non-GAAP financial measure. For further information on these measures, refer to pages 30-36.

⁵	Deferred tax liabilities relate to tax-deductible goodwill, which is netted against goodwill when calculating tangible common equity.

⁶	This is a non-GAAP financial measure.

PER-SHARE RELATED INFORMATION

(dollars in millions, except per share and ratio data)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																3Q14 Change																		2014 Change
	3Q14			2Q14			1Q14			4Q13			3Q13			2Q14						3Q13						2014			2013			2013
EARNINGS PER SHARE DATA																$			%			$			%									$			%

Basic earnings per share:
Net income (loss)	$	189		$	313		$	166		$	152		$	144		($	124	)		(40	)%	$	45			31	%	$	668		($	3,578	)	$	4,246			119	%
Less: Preferred stock dividends		—			—			—			—			—			—			—			—			—			—			—			—			—
Net income (loss) applicable to common equity		189			313			166			152			144			(124	)		(40	)		45			31			668			(3,578	)		4,246			119
Less: Dividends and undistributed earnings allocated to participating securities		—			—			—			—			—			—			—			—			—			—			—			—			—

Net income (loss) applicable to common stockholders	$	189		$	313		$	166		$	152		$	144		($	124	)		(40	)	$	45			31		$	668		($	3,578	)	$	4,246			119

Net income applicable to common stockholders, excluding restructuring charges and special items¹	$	202		$	205		$	166		$	169		$	144		($	3	)		(1	)	$	58			40		$	573		$	502		$	71			14

Total weighted-average basic shares outstanding		559,998,324			559,998,324			559,998,324			559,998,324			559,998,324			—			—			—			—			559,998,324			559,998,324			—			—

Net income (loss) per share - basic	$	0.34		$	0.56		$	0.30		$	0.27		$	0.26		($	0.22	)		(39	)	$	0.08			31		$	1.19		($	6.39	)	$	7.58			119
Net income per share, excluding restructuring charges and special items - basic¹	$	0.36		$	0.37		$	0.30		$	0.30		$	0.26		($	0.01	)		(3	)	$	0.10			38		$	1.02		$	0.89		$	0.13			15

Diluted earnings per share:
Net income (loss) applicable to common stockholders	$	189		$	313		$	166		$	152		$	144		($	124	)		(40	)	$	45			31		$	668		($	3,578	)	$	4,246			119
Net income applicable to common stockholders, excluding restructuring charges and special items¹	$	202		$	205		$	166		$	169		$	144		($	3	)		(1	)	$	58			40		$	573		$	502		$	71			14
Total weighted-average basic shares outstanding		559,998,324			559,998,324			559,998,324			559,998,324			559,998,324			—			—			—			—			559,998,324			559,998,324			—			—
Add: Share-based awards		245,423			—			—			—			—			245,423			—			245,423			—			82,707			—			82,707			—

Total weighted-average diluted shares outstanding		560,243,747			559,998,324			559,998,324			559,998,324			559,998,324			245,423			—			245,423			—			560,081,031			559,998,324			82,707			—

Net income (loss) per share - diluted	$	0.34		$	0.56		$	0.30		$	0.27		$	0.26		($	0.22	)		(39	)	$	0.08			31		$	1.19		($	6.39	)	$	7.58			119
Net income per share, excluding restructuring charges and special items - diluted¹	$	0.36		$	0.37		$	0.30		$	0.30		$	0.26		($	0.01	)		(3	)	$	0.10			38		$	1.02		$	0.89		$	0.13			15

COMMON SHARES OUTSTANDING
Common shares - at end of period		559,998,324			559,998,324			559,998,324			559,998,324			559,998,324			—			—	%		—			—	%		559,998,324			559,998,324			—			—	%
Cash dividends declared and paid per share	$	0.68		$	0.61		$	0.04		$	0.67		$	0.68		$	0.07			11		$	—			—		$	1.34		$	1.45		($	0.11	)		(8	)
Book value per share	$	34.61		$	35.00		$	34.72		$	34.28		$	34.67			(0.39	)		(1	)		(0.06	)		—			34.61			34.67			(0.06	)		—
Tangible book value per share	$	23.04		$	23.39		$	23.08		$	22.61		$	22.97			(0.35	)		(1	)		0.07			—			23.04			22.97			0.07			—
Dividend payout ratio		203	%		110	%		15	%		246	%		268	%		9,300 bps			8,455			(6,500) bps			(2,425	)		112	%		(23	)%		13,500 bps			58,696

SHARE PRICE
High	$	23.57		$	—		$	—		$	—		$	—		$	23.57			—	%	$	23.57			—	%	$	23.57		$	—		$	23.57			—	%
Low		21.35			—			—			—			—			21.35			—			21.35			—			21.35			—			21.35			—
Close		23.42			—			—			—			—			23.42			—			23.42			—			23.42			—			23.42			—
Market Capitalization		13,115			—			—			—			—			13,115			—			13,115			—			13,115			—			13,115			—

¹	These are non-GAAP financial measures. For further information on these measures, refer to pages 30-36.

NON-GAAP MEASURES (Excluding restructuring charges and special items)

(dollars in millions, except per-share data)

This document contains non-GAAP financial measures. The table below presents reconciliations of certain non-GAAP measures. These reconciliations exclude goodwill impairment, restructuring charges and/or special items, which are usually included, where applicable, in the financial results presented in accordance with GAAP. Special items include regulatory expenses and expenses relating to our initial public offering.

The non-GAAP measures set forth below include “total revenue”, “noninterest income”, “ noninterest expense”, “income tax expense (benefit)”, “net income (loss)”, “salaries and employee benefits”, “outside services”, “occupancy”, “equipment expense”, “other operating expense”, “return of average common equity” and “return on average total assets”. In addition, we present computations for “return on average tangible common equity”, “return on average total tangible assets” and “efficiency ratio” as part of our non-GAAP measures.

We believe these non-GAAP measures provide useful information to investors because these are among the measures used by our management team to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe goodwill impairment, restructuring charges and special items in any period do not reflect the operational performance of the business in that period and, accordingly, it is useful to consider these line items with and without goodwill impairment, restructuring charges and special items. We believe this presentation also increases comparability of period-to-period results.

We also consider pro forma capital ratios defined by banking regulators but not effective at each period end to be non-GAAP financial measures. Since analysts and banking regulators may assess our capital adequacy using these pro forma ratios, we believe they are useful to provide investors the ability to assess our capital adequacy on the same basis.

Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to similar measures used by other companies. We caution investors not to place undue reliance on such non-GAAP measures, but instead to consider them with the most directly comparable GAAP measure. Non-GAAP financial measures have limitations as analytical tools, and should not be considered in isolation, or as a substitute for our results as reported under GAAP.


		QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																	3Q14 Change																		2014 Change
		3Q14			2Q14			1Q14			4Q13			3Q13			2Q14						3Q13						2014			2013			2013
																	$			%			$			%									$			%
Noninterest income, excluding special items:
Noninterest income (GAAP)	A	$	341		$	640		$	358		$	379		$	383		($	299	)		(47	)%	($	42	)		(11	)%	$	1,339		$	1,253		$	86			7	%
Less: Special items - Chicago gain			—			288			—			—			—			(288	)		(100	)		—			—			288			—			288			—

Noninterest income, excluding special items (non-GAAP)	B	$	341		$	352		$	358		$	379		$	383		($	11	)		(3	)	($	42	)		(11	)	$	1,051		$	1,253		($	202	)		(16	)

Total revenue, excluding special items:
Total revenue (GAAP)	C	$	1,161		$	1,473		$	1,166		$	1,158		$	1,153		($	312	)		(21	)%	$	8			1	%	$	3,800		$	3,532		$	268			8	%
Less: Special items - Chicago gain			—			288			—			—			—			(288	)		(100	)		—			—			288			—			288			—

Total revenue, excluding special items (non-GAAP)	D	$	1,161		$	1,185		$	1,166		$	1,158		$	1,153		($	24	)		(2	)	$	8			1		$	3,512		$	3,532		($	20	)		(1	)

Noninterest expense, excluding restructuring charges and special items:
Noninterest expense (GAAP)	E	$	810		$	948		$	810		$	818		$	788		($	138	)		(15	)%	$	22			3	%	$	2,568		$	6,861		($	4,293	)		(63	)%
Less: Restructuring charges and special expense items	HH		21			115			—			26			—			(94	)		(82	)		21			—			136			4,435			(4,299	)		(97	)

Noninterest expense, excluding restructuring charges and special items (non-GAAP)	F	$	789		$	833		$	810		$	792		$	788		($	44	)		(5	)	$	1			—		$	2,432		$	2,426		$	6			—

Net income (loss), excluding restructuring charges and special items:
Net income (loss) (GAAP)	G	$	189		$	313		$	166		$	152		$	144		($	124	)		(40	)%	$	45			31	%	$	668		($	3,578	)	$	4,246			119	%
Add: Restructuring charges and special items, net of income tax expense (benefit)			13			(108	)		—			17			—			121			112			13			—			(95	)		4,080			(4,175	)		(102	)

Net income (loss), excluding restructuring charges and special items (non-GAAP)	H	$	202		$	205		$	166		$	169		$	144		($	3	)		(1	)	$	58			40		$	573		$	502		$	71			14

Return on average common equity, excluding restructuring charges and special items:
Average common equity (GAAP)	I	$	19,411		$	19,607		$	19,370		$	19,364		$	19,627		($	196	)		(1	)%	($	216	)		(1	)%	$	19,463		$	22,667		($	3,204	)		(14	)%
Return on average common equity, excluding restructuring charges and special items (non-GAAP)	H/I		4.14	%		4.19	%		3.48	%		3.47	%		2.91	%		(5) bps			—			123 bps			—			3.94	%		2.96	%		98 bps			—

NON-GAAP MEASURES (Excluding restructuring charges and special items) (CONTINUED)

(dollars in millions, except per-share data)


		QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																	3Q14 Change																		2014 Change
		3Q14			2Q14			1Q14			4Q13			3Q13			2Q14						3Q13						2014			2013			2013
																	$			%			$			%									$			%
Return on average tangible common equity and return on average tangible common equity, excluding restructuring charges and special items:
Average common equity (GAAP)	I	$	19,411		$	19,607		$	19,370		$	19,364		$	19,627		($	196	)		(1	)%	($	216	)		(1	)%	$	19,463		$	22,667		($	3,204	)		(14	)%
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			9,800			(2,924	)		(30	)
Less: Average other intangibles (GAAP)			6			7			7			8			9			(1	)		(14	)		(3	)		(33	)		7			10			(3	)		(30	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			384			369			351			342			325			15			4			59			18			368			486			(118	)		(24	)

Average tangible common equity (non-GAAP)	J	$	12,913		$	13,093		$	12,838		$	12,822		$	13,067		($	180	)		(1	)	($	154	)		(1	)	$	12,948		$	13,343		($	395	)		(3	)

Return on average tangible common equity (non-GAAP)	G/J		5.81	%		9.59	%		5.24	%		4.71	%		4.34	%		(378) bps			—			147 bps			—			6.90	%		(25.54	)%		3,244 bps			—
Return on average tangible common equity, excluding restructuring charges and special items (non-GAAP)	H/J		6.22	%		6.28	%		5.24	%		5.24	%		4.34	%		(6) bps			—			188 bps			—			5.92	%		5.03	%		89 bps			—

Return on average total assets, excluding restructuring charges and special items:
Average total assets (GAAP)	K	$	128,691		$	127,148		$	123,904		$	120,393		$	117,386		$	1,543			1	%	$	11,305			10	%	$	126,598		$	121,026		$	5,572			5	%
Return on average total assets, excluding restructuring charges and special items (non-GAAP)	H/K		0.62	%		0.65	%		0.54	%		0.56	%		0.49	%		(3) bps			—			13 bps			—			0.61	%		0.55	%		6 bps			—

Return on average total tangible assets and return on average total tangible assets, excluding restructuring charges and special items:
Average total assets (GAAP)	K	$	128,691		$	127,148		$	123,904		$	120,393		$	117,386		$	1,543			1	%	$	11,305			10	%	$	126,598		$	121,026		$	5,572			5	%
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			9,800			(2,924	)		(30	)
Less: Average other intangibles (GAAP)			6			7			7			8			9			(1	)		(14	)		(3	)		(33	)		7			10			(3	)		(30	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			384			369			351			342			325			15			4			59			18			368			486			(118	)		(24	)

Average tangible assets (non-GAAP)	L	$	122,193		$	120,634		$	117,372		$	113,851		$	110,826		$	1,559			1		$	11,367			10		$	120,083		$	111,702		$	8,381			8

Return on average total tangible assets (non-GAAP)	G/L		0.61	%		1.04	%		0.57	%		0.53	%		0.52	%		(43) bps			—			9 bps			—			0.74	%		(3.05	)%		379 bps			—
Return on average total tangible assets, excluding restructuring charges and special items (non-GAAP)	H/L		0.66	%		0.68	%		0.57	%		0.59	%		0.52	%		(2) bps			—			14 bps			—			0.64	%		0.60	%		4 bps			—

Efficiency ratio and efficiency ratio, excluding restructuring charges and special items:
Net interest income (GAAP)		$	820		$	833		$	808		$	779		$	770		($	13	)		(2	)%	$	50			6	%	$	2,461		$	2,279		$	182			8	%
Add: Noninterest income (GAAP)			341			640			358			379			383			(299	)		(47	)		(42	)		(11	)		1,339			1,253			86			7

Total revenue (GAAP)	C	$	1,161		$	1,473		$	1,166		$	1,158		$	1,153		($	312	)		(21	)	$	8			1		$	3,800		$	3,532		$	268			8

Efficiency ratio (non-GAAP)	E/C		69.84	%		64.33	%		69.43	%		70.62	%		68.49	%		551 bps			—			135 bps			—			67.58	%		194.29	%		(12,671) bps			—
Efficiency ratio, excluding restructuring charges and special items (non-GAAP)	F/D		68.02	%		70.23	%		69.43	%		68.35	%		68.49	%		(221) bps			—			(47) bps			—			69.23	%		68.70	%		53 bps			—

NON-GAAP MEASURES (Excluding restructuring charges and special items) (CONTINUED)

(dollars in millions, except per-share data)


		QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																	3Q14 Change																	2014 Change
		3Q14			2Q14			1Q14			4Q13			3Q13			2Q14						3Q13						2014		2013			2013
																	$			%			$			%								$			%
Net income (loss) per average common share - basic and diluted, excluding restructuring charges and special items:
Average common shares outstanding - basic (GAAP)	M		559,998,324			559,998,324			559,998,324			559,998,324			559,998,324			—			—	%		—			—	%		559,998,324		559,998,324			—			—	%
Average common shares outstanding - diluted (GAAP)	N		560,243,747			559,998,324			559,998,324			559,998,324			559,998,324			245,423			—			245,423			—			560,081,031		559,998,324			82,707			—
Net income (loss) applicable to common stockholders (GAAP)	O	$	189		$	313		$	166		$	152		$	144		($	124	)		(40	)	$	45			31		$	668	($	3,578	)	$	4,246			119
Net income (loss) per average common share - basic (GAAP)	O/M		0.34			0.56			0.30			0.27			0.26			(0.22	)		(39	)		0.08			31			1.19		(6.39	)		7.58			119
Net income (loss) per average common share - diluted (GAAP)	O/N		0.34			0.56			0.30			0.27			0.26			(0.22	)		(39	)		0.08			31			1.19		(6.39	)		7.58			119
Net income (loss) applicable to common stockholders, excluding restructuring charges and special items (non-GAAP)	P		202			205			166			169			144			(3	)		(1	)		58			40			573		502			71			14
Net income per average common share - basic, excluding restructuring charges and special items (non-GAAP)	P/M		0.36			0.37			0.30			0.30			0.26			(0.01	)		(3	)		0.10			38			1.02		0.89			0.13			15
Net income per average common share - diluted, excluding restructuring charges and special items (non-GAAP)	P/N		0.36			0.37			0.30			0.30			0.26			(0.01	)		(3	)		0.10			38			1.02		0.89			0.13			15

Pro forma Basel III common equity Tier 1 capital ratio:
Tier 1 common capital (regulatory)		$	13,330		$	13,448		$	13,460		$	13,301		$	13,489		($	118	)		(1	)%	($	159	)		(1	)%
Add: Change in DTA and other threshold deductions (GAAP)			(5	)		(7	)		(7	)		6			—			2			29			5			—

Basel III common equity Tier 1 (non-GAAP)	Q	$	13,335		$	13,455		$	13,467		$	13,295		$	13,489		($	120	)		(1	)	($	154	)		(1	)

Risk-weighted assets (regulatory general risk weight approach)			103,207			101,397			100,368			98,634			96,735			1,810			2			6,472			7
Net change in credit and other risk-weighted assets (GAAP)			3,207			2,383			2,450			2,687			2,768			824			35			439			16

Basel III standardized approach risk-weighted assets (non-GAAP)	R	$	106,414		$	103,780		$	102,818		$	101,321		$	99,503		$	2,634			3		$	6,911			7

Pro forma Basel III common equity Tier 1 capital ratio (non-GAAP)	Q/R		12.5	%		13.0	%		13.1	%		13.1	%		13.6	%

Salaries and employee benefits, excluding restructuring charges and special items:
Salaries and employee benefits (GAAP)	S	$	409		$	467		$	405		$	391		$	403		($	58	)		(12	)%	$	6			1	%	$	1,281	$	1,261		$	20			2	%
Less: Restructuring charges and special items			—			43			—			5			—			(43	)		(100	)		—			—			43		—			43			—

Salaries and employee benefits, excluding restructuring charges and special items (non-GAAP)	T	$	409		$	424		$	405		$	386		$	403		($	15	)		(4	)	$	6			1		$	1,238	$	1,261		($	23	)		(2	)


Outside services, excluding restructuring charges and special items:
Outside services (GAAP)	U	$	106		$	125		$	83		$	101		$	87		($	19	)		(15	)%	$	19			22	%	$	314	$	259		$	55			21	%
Less: Restructuring charges and special items			19			41			—			—			—			(22	)		(54	)		19			—			60		—			60			—

Outside services, excluding restructuring charges and special items (non-GAAP)	V	$	87		$	84		$	83		$	101		$	87		$	3			4		$	—			—		$	254	$	259		($	5	)		(2	)


Occupancy, excluding restructuring charges and special items:
Occupancy (GAAP)	W	$	77		$	87		$	81		$	83		$	80		($	10	)		(11	)%	($	3	)		(4	)%	$	245	$	244		$	1			—	%
Less: Restructuring charges and special items			2			9			—			11			—			(7	)		(78	)		2			—			11		—			11			—

Occupancy, excluding restructuring charges and special items (non-GAAP)	X	$	75		$	78		$	81		$	72		$	80		($	3	)		(4	)	($	5	)		(6	)	$	234	$	244		($	10	)		(4	)

NON-GAAP MEASURES (Excluding restructuring charges and special items) (CONTINUED)

(dollars in millions, except per-share data)


		QUARTERLY TRENDS																								FOR THE NINE MONTHS ENDED SEPTEMBER 30,
														3Q14 Change																	2014 Change
		3Q14			2Q14		1Q14		4Q13			3Q13		2Q14						3Q13						2014		2013			2013
														$			%			$			%								$			%
Equipment expense, excluding restructuring charges and special items:
Equipment expense (GAAP)	Y	$	58		$	65	$	64	$	68		$	69	($	7	)		(11	)%	($	11	)		(16	)%	$	187	$	207		($	20	)		(10	)%
Less: Restructuring charges and special items			—			3		—		7			—		(3	)		(100	)		—			—			3		—			3			—

Equipment expense, excluding restructuring charges and special items (non-GAAP)	Z	$	58		$	62	$	64	$	61		$	69	($	4	)		(6	)	($	11	)		(16	)	$	184	$	207		($	23	)		(11	)


Other operating expense, excluding restructuring charges and special items:
Other operating expense (GAAP)	AA	$	122		$	171	$	146	$	143		$	123	($	49	)		(29	)%	($	1	)		(1	)%	$	439	$	384		$	55			14	%
Less: Restructuring charges and special items			—			19		—		3			—		(19	)		(100	)		—			—			19		—			19			—

Other operating expense, excluding restructuring charges and special items (non-GAAP)	BB	$	122		$	152	$	146	$	140		$	123	($	30	)		(20	)	($	1	)		(1	)	$	420	$	384		$	36			9


Pre-provision profit, excluding restructuring charges and special items:
Total revenue, excluding restructuring charges and special items (non-GAAP)	D	$	1,161		$	1,185	$	1,166	$	1,158		$	1,153	($	24	)		(2	)%	$	8			1	%	$	3,512	$	3,532		($	20	)		(1	)%
Less: Noninterest expense, excluding restructuring charges and special items (non-GAAP)	F		789			833		810		792			788		(44	)		(5	)		1			—			2,432		2,426			6			—

Pre-provision profit, excluding restructuring charges and special items (non-GAAP)	CC	$	372		$	352	$	356	$	366		$	365	$	20			6		$	7			2		$	1,080	$	1,106		($	26	)		(2	)


Income before income tax expense (benefit), excluding restructuring charges and special items:
Income before income tax expense (benefit) (GAAP)	DD	$	274		$	476	$	235	$	208		$	220	($	202	)		(42	)%	$	54			25	%	$	985	($	3,676	)	$	4,661			127	%
Less: Income before income tax expense (benefit) related to restructuring charges and special items (GAAP)			(21	)		173		—		(26	)		—		(194	)		(112	)		(21	)		—			152		759			(607	)		80

Income before income tax expense (benefit), excluding restructuring charges and special items (non-GAAP)	EE	$	295		$	303	$	235	$	234		$	220	($	8	)		(3	)	$	75			34		$	833	($	4,435	)	$	5,268			119


Income tax expense (benefit), excluding restructuring charges and special items:
Income tax expense (benefit) (GAAP)	FF	$	85		$	163	$	69	$	56		$	76	($	78	)		(48	)%	$	9			12	%	$	317	($	98	)	$	415			423	%
Less: Income tax (benefit) related to restructuring charges and special items (GAAP)			(8	)		65		—		(9	)		—		(73	)		(112	)		(8	)		—			57		(355	)		412			116

Income tax expense (benefit), excluding restructuring charges and special items (non-GAAP)	GG	$	93		$	98	$	69	$	65		$	76	($	5	)		(5	)	$	17			22		$	260	$	257		$	3			1


Restructuring charges and special expense items include:
Goodwill impairment		$	—		$	—	$	—	$	—		$	—	$	—			—	%	$	—			—	%	$	—	$	4,435		($	4,435	)		(100	)%
Restructuring charges			1			103		—		26			—		(102	)		(99	)		1			—			104		—			104			—
Special items			20			12		—		—			—		8			67			20			—			32		—			32			—

Restructuring charges and special expense items	HH	$	21		$	115	$	—	$	26		$	—	($	94	)		(82	)	$	21			—		$	136	$	4,435		($	4,299	)		(97	)

NON-GAAP MEASURES - SEGMENTS

(dollars in millions)


		Three Months Ended September 30,												Three Months Ended June 30,											Three Months Ended March 31,
		2014												2014											2014
		Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other		Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income (loss) (GAAP)	A	$	54		$	139		($	4	)	$	189		$	44		$	141		$	128	$	313		$	32		$	141		($	7	)	$	166

Return on average tangible common equity
Average common equity (GAAP)	B	$	4,685		$	4,205		$	10,521		$	19,411		$	4,640		$	4,129		$	10,838	$	19,607		$	4,568		$	4,023		$	10,779		$	19,370
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876		6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			6			6			—			—			7		7			—			—			7			7
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			384			384			—			—			369		369			—			—			351			351

Average tangible common equity (non-GAAP)	C	$	4,685		$	4,205		$	4,023		$	12,913		$	4,640		$	4,129		$	4,324	$	13,093		$	4,568		$	4,023		$	4,247		$	12,838

Return on average tangible common equity (non-GAAP)	A/C		4.57	%		13.10	%		NM			5.81	%		3.87	%		13.78	%		NM		9.59	%		2.81	%		14.17	%		NM			5.24	%

Return on average total tangible assets
Average total assets (GAAP)	D	$	49,012		$	38,854		$	40,825		$	128,691		$	48,556		$	38,022		$	40,570	$	127,148		$	47,610		$	36,955		$	39,339		$	123,904
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876		6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			6			6			—			—			7		7			—			—			7			7
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			384			384			—			—			369		369			—			—			351			351

Average tangible assets (non-GAAP)	E	$	49,012		$	38,854		$	34,327		$	122,193		$	48,556		$	38,022		$	34,056	$	120,634		$	47,610		$	36,955		$	32,807		$	117,372

Return on average total tangible assets (non-GAAP)	A/E		0.44	%		1.42	%		NM			0.61	%		0.37	%		1.50	%		NM		1.04	%		0.27	%		1.54	%		NM			0.57	%

Efficiency ratio
Noninterest expense (GAAP)	F	$	609		$	162		$	39		$	810		$	655		$	157		$	136	$	948		$	638		$	153		$	19		$	810
Net interest income (GAAP)			532			270			18			820			546			264			23		833			537			256			15			808
Noninterest income (GAAP)			226			104			11			341			236			107			297		640			219			107			32			358

Total revenue	G	$	758		$	374		$	29		$	1,161		$	782		$	371		$	320	$	1,473		$	756		$	363		$	47		$	1,166

Efficiency ratio (non-GAAP)	F/G		80.42	%		43.35	%		NM			69.84	%		83.61	%		42.36	%		NM		64.33	%		84.39	%		42.13	%		NM			69.43	%

NON-GAAP MEASURES - SEGMENTS (CONTINUED)

(dollars in millions)


		Three Months Ended December 31,												Three Months Ended September 30,
		2013												2013
		Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income (loss) (GAAP)	A	$	50		$	123		($	21	)	$	152		$	52		$	127		($	35	)	$	144

Return on average tangible common equity
Average common equity (GAAP)	B	$	4,448		$	3,978		$	10,938		$	19,364		$	4,403		$	3,855		$	11,369		$	19,627
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			8			8			—			—			9			9
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			342			342			—			—			325			325

Average tangible common equity (non-GAAP)	C	$	4,448		$	3,978		$	4,396		$	12,822		$	4,403		$	3,855		$	4,809		$	13,067

Return on average tangible common equity (non-GAAP)	A/C		4.40	%		12.10	%		NM			4.71	%		4.69	%		13.24	%		NM			4.34	%

Return on average total tangible assets
Average total assets (GAAP)	D	$	46,225		$	36,094		$	38,074		$	120,393		$	46,169		$	35,019		$	36,198		$	117,386
Less: Average goodwill (GAAP)			—			—			6,876			6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			8			8			—			—			9			9
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			342			342			—			—			325			325

Average tangible assets (non-GAAP)	E	$	46,225		$	36,094		$	31,532		$	113,851		$	46,169		$	35,019		$	29,638		$	110,826

Return on average total tangible assets (non-GAAP)	A/E		0.42	%		1.33	%		NM			0.53	%		0.45	%		1.46	%		NM			0.52	%

Efficiency ratio
Noninterest expense (GAAP)	F	$	638		$	164		$	16		$	818		$	622		$	156		$	10		$	788
Net interest income (GAAP)			543			260			(24	)		779			543			263			(36	)		770
Noninterest income (GAAP)			235			105			39			379			246			93			44			383

Total revenue	G	$	778		$	365		$	15		$	1,158		$	789		$	356		$	8		$	1,153

Efficiency ratio (non-GAAP)	F/G		81.84	%		44.73	%		NM			70.62	%		78.83	%		43.69	%		NM			68.49	%

NON-GAAP MEASURES - SEGMENTS (CONTINUED)

(dollars in millions)


		Nine Months Ended September 30,
		2014											2013
		Consumer Banking			Commercial Banking			Other		Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income (loss) (GAAP)	A	$	130		$	421		$	117	$	668		$	192		$	391		($	4,161	)	($	3,578	)

Return on average tangible common equity
Average common equity (GAAP)	B	$	4,635		$	4,120		$	10,708	$	19,463		$	4,377		$	3,870		$	14,420		$	22,667
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			9,800			9,800
Average other intangibles (GAAP)			—			—			7		7			—			—			10			10
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			368		368			—			—			486			486

Average tangible common equity (non-GAAP)	C	$	4,635		$	4,120		$	4,193	$	12,948		$	4,377		$	3,870		$	5,096		$	13,343

Return on average tangible common equity (non-GAAP)	A/C		3.76	%		13.67	%		NM		6.90	%		5.86	%		13.59	%		NM			(25.54	)%

Return on average total tangible assets
Average total assets (GAAP)	D	$	48,398		$	37,951		$	40,249	$	126,598		$	46,546		$	34,938		$	39,542		$	121,026
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			9,800			9,800
Average other intangibles (GAAP)			—			—			7		7			—			—			10			10
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			368		368			—			—			486			486

Average tangible assets (non-GAAP)	E	$	48,398		$	37,951		$	33,734	$	120,083		$	46,546		$	34,938		$	30,218		$	111,702

Return on average total tangible assets (non-GAAP)	A/E		0.36	%		1.48	%		NM		0.74	%		0.55	%		1.51	%		NM			(3.05	)%

Efficiency ratio
Noninterest expense (GAAP)	F	$	1,902		$	472		$	194	$	2,568		$	1,884		$	471		$	4,506		$	6,861
Net interest income (GAAP)			1,615			790			56		2,461			1,633			771			(125	)		2,279
Noninterest income (GAAP)			681			318			340		1,339			790			284			179			1,253

Total revenue	G	$	2,296		$	1,108		$	396	$	3,800		$	2,423		$	1,055		$	54		$	3,532

Efficiency ratio (non-GAAP)	F/G		82.82	%		42.62	%		NM		67.58	%		77.78	%		44.64	%		NM			194.29	%

Forward-Looking Statements

This document contains forward-looking statements. In addition, we may make forward-looking statements in our other documents filed or furnished with the SEC, and our management may make forward-looking statements orally to analysts, investors, representatives of the media and others. Statements regarding potential future share repurchases and future dividends are forward-looking statements. Also, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “goals,” “targets,” “initiatives,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would,” and “could.”

Forward-looking statements are based upon the current beliefs and expectations of management, and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation:

•

negative economic conditions that adversely affect the general economy, housing prices, the job market, consumer confidence and spending habits which may affect, among other things, the level of nonperforming assets, charge-offs and provision expense;

•

the rate of growth in the economy and employment levels, as well as general business and economic conditions;

•

our ability to implement our strategic plan, including the cost savings and efficiency components, and achieve our indicative performance targets;

•

our ability to remedy regulatory deficiencies and meet supervisory requirements and expectations;

•

liabilities resulting from litigation and regulatory investigations;

•

our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;

•

the effect of the current low interest rate environment or changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale;

•

changes in interest rates and market liquidity, as well as the magnitude of such changes, which may reduce interest margins, impact funding sources and affect the ability to originate and distribute financial products in the primary and secondary markets;

•

the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin;

•

financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;

•

a failure in or breach of our operational or security systems or infrastructure, or those of our third party vendors or other service providers, including as a result of cyber attacks;

•

management’s ability to identify and manage these and other risks; and

•

any failure by us to successfully replicate or replace certain functions, systems and infrastructure provided by The Royal Bank of Scotland Group plc (RBS Group).

In addition to the above factors, we also caution that the amount and timing of any future common stock dividends will depend on our financial condition, earnings, cash needs, regulatory constraints, capital requirements (including requirements of our subsidiaries), and any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will pay any dividends to holders of our common stock, or as to the amount of any such dividends. In addition, the timing and manner of the sale of RBS Group’s remaining ownership of our common stock remains uncertain, and we have no control over the manner in which RBS Group may seek to divest such remaining shares. Any such sale would impact the price of our shares of common stock.

More information about factors that could cause actual results to differ materially from those described in the forward-looking statements can be found under “Risk Factors” in our Registration Statement on Form S-1 filed with the United States Securities and Exchange Commission and declared effective on September 23, 2014.

Any forward-looking statement made by us speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.