EX-99.3

EX-99.3 4 d643767dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

LOGO

Financial Supplement

Third Quarter 2018


Table of Contents	Page

Consolidated Financial Highlights		3

Consolidated Statements of Operations (unaudited)		5

Consolidated Balance Sheets (unaudited)		6

Loans and Deposits		7

Average Balance Sheets and Annualized Yields		8

Segment Financial Highlights		10

Credit-Related Information:

Credit Exposure		18

Nonperforming Assets		19

Charge-offs, Recoveries and Related Ratios		20

Summary of Changes in the Components of the Allowance for Credit Losses		22

Capital and Ratios		23

Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations		24


The information in this Financial Supplement is preliminary and based on company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying pages. The company does not undertake an obligation to, and disclaims any duty to, update any of the information provided. Any forward-looking statements in this Financial Supplement are subject to the forward-looking statements language contained in the company’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which can be found on the SEC’s website (www.sec.gov) or on the company’s website (www.citizensbank.com). The company’s future financial performance is subject to the risks and uncertainties described in its SEC filings.

CONSOLIDATED FINANCIAL HIGHLIGHTS

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


	QUARTERLY TRENDS																		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
											3Q18 Change												2018 Change
	3Q18		2Q18		1Q18		4Q17		3Q17		2Q18				3Q17				2018		2017		2017

											$		%		$		%						$		%
SELECTED OPERATING DATA
Total revenue		$1,564		$1,509		$1,462		$1,484		$1,443		$55		4%		$121		8%		$4,535		$4,223		$312		7%
Noninterest expense		910		875		883		898		858		35		4		52		6		2,668		2,576		92		4

Profit before provision for credit losses		654		634		579		586		585		20		3		69		12		1,867		1,647		220		13
Provision for credit losses		78		85		78		83		72		(7)		(8)		6		8		241		238		3		1
NET INCOME		443		425		388		666		348		18		4		95		27		1,256		986		270		27
Net income, Underlying¹		450		425		388		349		348		25		6		102		29		1,263		963		300		31
Net income available to common stockholders		436		425		381		666		341		11		3		95		28		1,242		972		270		28
Net income available to common stockholders, Underlying¹		443		425		381		349		341		18		4		102		30		1,249		949		300		32
PER COMMON SHARE DATA
Basic earnings		$0.92		$0.88		$0.78		$1.35		$0.68		$0.04		5%		$0.24		35%		$2.57		$1.92		$0.65		34%
Diluted earnings		0.91		0.88		0.78		1.35		0.68		0.03		3		0.23		34		2.57		1.92		0.65		34
Basic earnings, Underlying¹		0.93		0.88		0.78		0.71		0.68		0.05		6		0.25		37		2.59		1.88		0.71		38
Diluted earnings, Underlying¹		0.93		0.88		0.78		0.71		0.68		0.05		6		0.25		37		2.58		1.87		0.71		38
Cash dividends declared and paid per common share		0.27		0.22		0.22		0.18		0.18		0.05		23		0.09		50		0.71		0.46		0.25		54
Book value per common share		41.62		41.16		40.64		40.80		39.76		0.46		1		1.86		5		41.62		39.76		1.86		5
Tangible book value per common share		27.66		27.67		27.24		27.48		27.05		(0.01)		—		0.61		2		27.66		27.05		0.61		2
Dividend payout ratio		29%		25%		28%		13%		26%		400 bps				300 bps				28%		24%		400 bps
Dividend payout ratio, Underlying¹		29		25		28		25		26		400 bps				300 bps				27		24		300 bps
COMMON SHARES OUTSTANDING
Average: Basic		475,957,526		484,744,354		487,500,618		492,149,763		500,861,076		(8,786,828)		(2%)		(24,903,550)		(5%)		482,691,884		505,529,991		(22,838,107)		(5%)
Diluted		477,599,917		486,141,695		489,266,826		493,788,007		502,157,384		(8,541,778)		(2)		(24,557,467)		(5)		484,250,843		507,062,805		(22,811,962)		(4)
Common shares at period-end		474,120,616		484,055,194		487,551,444		490,812,912		499,505,285		(9,934,578)		(2)		(25,384,669)		(5)		474,120,616		499,505,285		(25,384,669)		(5)
SHARE PRICE
High		$41.76		$43.62		$48.23		$42.93		$38.06		($1.86)		(4%)		$3.70		10%		$48.23		$39.75		$8.48		21%
Low		38.47		38.84		40.80		36.10		31.51		(0.37)		(1)		6.96		22		38.47		31.51		6.96		22
Close		38.57		38.90		41.98		41.98		37.87		(0.33)		(1)		0.70		2		38.57		37.87		0.70		2
Market capitalization		18,287		18,830		20,467		20,604		18,916		(543)		(3)		(629)		(3)		18,287		18,916		(629)		(3)
SEGMENT NET INCOME
Consumer Banking		$207		$197		$170		$117		$122		$10		5%		$85		70%		$574		$335		$239		71%
Commercial Banking		234		237		215		206		201		(3)		(1)		33		16		686		568		118		21
Other		2		(9)		3		343		25		11		122		(23)		(92)		(4)		83		(87)		(105)

NET INCOME		$443		$425		$388		$666		$348		$18		4%		$95		27%		$1,256		$986		$270		27%

¹	These are non-GAAP financial measures. For further information on these measures, refer to “Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations” at the end of this document.

CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio and headcount data)


	QUARTERLY TRENDS																		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
											3Q18 Change												2018 Change
	3Q18		2Q18		1Q18		4Q17		3Q17		2Q18				3Q17				2018		2017		2017
											$/bps		%		$/bps		%						$/bps		%
FINANCIAL RATIOS
Net interest margin		3.19%		3.18%		3.16%		3.08%		3.05%		1 bps				14 bps				3.18%		3.00%		18 bps
Return on average common equity		8.82		8.65		7.83		13.46		6.87		17 bps				195 bps				8.44		6.63		181 bps
Return on average common equity, Underlying¹		8.96		8.65		7.83		7.05		6.87		31 bps				209 bps				8.48		6.47		201 bps
Return on average tangible common equity		13.29		12.93		11.71		19.92		10.13		36 bps				316 bps				12.64		9.80		284 bps
Return on average tangible common equity, Underlying¹		13.50		12.93		11.71		10.43		10.13		57 bps				337 bps				12.71		9.57		314 bps
Return on average total assets		1.13		1.11		1.04		1.75		0.92		2 bps				21 bps				1.09		0.88		21 bps
Return on average total assets, Underlying¹		1.15		1.11		1.04		0.92		0.92		4 bps				23 bps				1.10		0.86		24 bps
Return on average total tangible assets		1.18		1.16		1.08		1.83		0.96		2 bps				22 bps				1.14		0.92		22 bps
Return on average total tangible assets, Underlying¹		1.20		1.16		1.08		0.96		0.96		4 bps				24 bps				1.15		0.90		25 bps
Effective income tax rate		23.16		22.58		22.52		(32.40)		32.18		58 bps				(902) bps				22.77		30.04		(727) bps
Effective income tax rate, Underlying¹		23.20		22.58		22.52		33.68		32.18		62 bps				(898) bps				22.78		31.65		(887) bps
Efficiency ratio		58.20		57.95		60.43		60.52		59.41		25 bps				(121) bps				58.84		60.99		(215) bps
Efficiency ratio, Underlying¹		57.62		57.95		60.43		58.50		59.41		(33) bps				(179) bps				58.64		60.47		(183) bps
CAPITAL RATIOS - PERIOD-END (PRELIMINARY)²
CET1 capital ratio		10.8%		11.2%		11.2%		11.2%		11.1%
Tier 1 capital ratio		11.2		11.6		11.4		11.4		11.3
Total capital ratio		13.4		13.8		13.9		13.9		13.8
Tier 1 leverage ratio		9.9		10.2		10.0		10.0		9.9
SELECTED BALANCE SHEET DATA (PERIOD-END)
Total assets		$158,598		$155,431		$153,453		$152,336		$151,356		$3,167		2%		$7,242		5%		$158,598		$151,356		$7,242		5%
Loans and leases:
Commercial		55,405		54,888		53,144		52,031		52,381		517		1		3,024		6		55,405		52,381		3,024		6
Retail		59,315		58,519		58,281		58,586		57,770		796		1		1,545		3		59,315		57,770		1,545		3

Total loans and leases		114,720		113,407		111,425		110,617		110,151		1,313		1		4,569		4		114,720		110,151		4,569		4
Deposits		117,075		117,073		115,730		115,089		113,235		2		—		3,840		3		117,075		113,235		3,840		3
Long-term borrowed funds		15,639		13,641		13,486		11,765		13,400		1,998		15		2,239		17		15,639		13,400		2,239		17
Total stockholders’ equity		20,276		20,467		20,059		20,270		20,109		(191)		(1)		167		1		20,276		20,109		167		1
Loans-to-deposits ratio (period-end balances)³		97.99%		96.87%		96.28%		96.11%		97.28%		112 bps				71 bps				97.99%		97.28%		71 bps
Loans-to-deposits ratio (average balances)³		97.38		98.01		97.96		97.10		96.93		(63) bps				45 bps				97.78		97.90		(12) bps
Full-time equivalent colleagues		18,332		17,699		17,546		17,594		17,696		633		4		636		4		18,332		17,696		636		4

¹	These are non-GAAP financial measures. For further information on these measures, refer to “Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations” at the end of this document.

²	The December 31, 2017 capital ratios reflect the retrospective adoption of FASB ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.

³	In the third quarter of 2018, we revised our method of calculating the loans-to-deposits ratio to exclude loans held for sale. Prior periods have been adjusted to conform with the current period presentation.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in millions)


	QUARTERLY TRENDS																		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
											3Q18 Change												2018 Change
	3Q18		2Q18		1Q18		4Q17		3Q17		2Q18				3Q17				2018		2017		2017
											$		%		$		%						$		%
INTEREST INCOME:
Interest and fees on loans and leases		$1,287		$1,230		$1,146		$1,121		$1,096		$57		5%		$191		17%		$3,663		$3,128		$535		17%
Interest and fees on loans held for sale		14		5		4		5		5		9		180		9		180		23		13		10		77
Interest and fees on other loans held for sale		2		3		4		4		3		(1)		(33)		(1)		(33)		9		6		3		50
Investment securities		167		165		168		156		155		2		1		12		8		500		469		31		7
Interest-bearing deposits in banks		7		8		6		5		5		(1)		(13)		2		40		21		13		8		62

Total interest income		1,477		1,411		1,328		1,291		1,264		66		5		213		17		4,216		3,629		587		16

INTEREST EXPENSE:
Deposits		214		181		145		130		123		33		18		91		74		540		311		229		74
Federal funds purchased and securities sold under agreements to repurchase		2		1		1		1		1		1		100		1		100		4		2		2		100
Other short-term borrowed funds		19		14		9		9		7		5		36		12		171		42		22		20		91
Long-term borrowed funds		94		94		82		71		71		—		—		23		32		270		201		69		34

Total interest expense		329		290		237		211		202		39		13		127		63		856		536		320		60

Net interest income		1,148		1,121		1,091		1,080		1,062		27		2		86		8		3,360		3,093		267		9

NONINTEREST INCOME:
Service charges and fees		131		127		124		131		131		4		3		—		—		382		385		(3)		(1)
Card fees		61		60		61		56		58		1		2		3		5		182		177		5		3
Capital markets fees		47		48		39		42		53		(1)		(2)		(6)		(11)		134		152		(18)		(12)
Trust and investment services fees		45		43		40		42		38		2		5		7		18		128		116		12		10
Letter of credit and loan fees		32		32		30		31		30		—		—		2		7		94		90		4		4
Foreign exchange and interest rate products		31		34		27		32		24		(3)		(9)		7		29		92		77		15		19
Mortgage banking fees		49		27		25		28		27		22		81		22		81		101		80		21		26
Securities gains, net		3		2		8		2		2		1		50		1		50		13		9		4		44
Other income		17		15		17		40		18		2		13		(1)		(6)		49		44		5		11

Total noninterest income		416		388		371		404		381		28		7		35		9		1,175		1,130		45		4

TOTAL REVENUE		1,564		1,509		1,462		1,484		1,443		55		4		121		8		4,535		4,223		312		7
Provision for credit losses		78		85		78		83		72		(7)		(8)		6		8		241		238		3		1
NONINTEREST EXPENSE:
Salaries and employee benefits¹		474		453		470		450		438		21		5		36		8		1,397		1,316		81		6
Outside services		107		106		99		118		99		1		1		8		8		312		286		26		9
Occupancy		81		79		81		80		78		2		3		3		4		241		239		2		1
Equipment expense		70		64		67		67		65		6		9		5		8		201		196		5		3
Amortization of software		47		46		46		46		45		1		2		2		4		139		134		5		4
Other operating expense¹		131		127		120		137		133		4		3		(2)		(2)		378		405		(27)		(7)

Total noninterest expense		910		875		883		898		858		35		4		52		6		2,668		2,576		92		4

Income before income tax expense (benefit)		576		549		501		503		513		27		5		63		12		1,626		1,409		217		15
Income tax expense (benefit)		133		124		113		(163)		165		9		7		(32)		(19)		370		423		(53)		(13)

Net income		$443		$425		$388		$666		$348		$18		4%		$95		27%		$1,256		$986		$270		27%

Net income, Underlying²		$450		$425		$388		$349		$348		$25		6%		$102		29%		$1,263		$963		$300		31%

Net income available to common stockholders		$436		$425		$381		$666		$341		$11		3%		$95		28%		$1,242		$972		$270		28%

Net income available to common stockholders, Underlying²		$443		$425		$381		$349		$341		$18		4%		$102		30%		$1,249		$949		$300		32%

As of January 1, 2018, we retrospectively adopted ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires the service cost component of net periodic pension and postretirement benefit cost to be reported separately in the Consolidated Statements of Operations from the other components. Prior periods have been adjusted to conform with the current period presentation.

²	These are non-GAAP financial measures. For further information on these measures, refer to “Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations” at the end of this document.

CONSOLIDATED BALANCE SHEETS (unaudited)

(in millions)


PERIOD-END BALANCES	AS OF										SEPTEMBER 30, 2018 CHANGE
	Sept 30, 2018		June 30, 2018		Mar 31, 2018		Dec 31, 2017		Sept 30, 2017		June 30, 2018				Sept 30, 2017
											$		%		$		%
ASSETS:
Cash and due from banks		$976		$997		$1,172		$987		$781		($21)		(2%)		$195		25%
Interest-bearing cash and due from banks		3,015		2,868		2,687		2,045		1,339		147		5		1,676		125
Interest-bearing deposits in banks		142		114		142		192		287		28		25		(145)		(51)
Debt securities available for sale, at fair value¹		20,152		20,157		19,958		20,157		19,982		(5)		—		170		1
Debt securities held to maturity¹		4,284		4,417		4,555		4,685		4,823		(133)		(3)		(539)		(11)
Equity securities, at fair value¹		175		170		172		169		165		5		3		10		6
Equity securities, at cost¹		874		769		748		722		772		105		14		102		13
Loans held for sale, at fair value		1,303		521		478		497		500		782		150		803		161
Other loans held for sale		27		189		322		221		724		(162)		(86)		(697)		(96)
Loans and leases		114,720		113,407		111,425		110,617		110,151		1,313		1		4,569		4
Less: Allowance for loan and lease losses		(1,242)		(1,253)		(1,246)		(1,236)		(1,224)		11		1		(18)		(1)

Net loans and leases		113,478		112,154		110,179		109,381		108,927		1,324		1		4,551		4
Derivative assets		173		224		274		617		596		(51)		(23)		(423)		(71)
Premises and equipment		753		720		687		685		618		33		5		135		22
Bank-owned life insurance		1,687		1,677		1,669		1,656		1,646		10		1		41		2
Goodwill		6,946		6,887		6,887		6,887		6,887		59		1		59		1
Due from broker		—		—		84		6		226		—		—		(226)		(100)
Other assets		4,613		3,567		3,439		3,429		3,083		1,046		29		1,530		50

TOTAL ASSETS		$158,598		$155,431		$153,453		$152,336		$151,356		$3,167		2%		$7,242		5%

LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Deposits:
Noninterest-bearing		$29,785		$29,439		$28,437		$29,279		$28,643		$346		1%		$1,142		4%
Interest-bearing		87,290		87,634		87,293		85,810		84,592		(344)		—		2,698		3

Total deposits		117,075		117,073		115,730		115,089		113,235		2		—		3,840		3
Federal funds purchased and securities sold under agreements to repurchase²		374		326		315		815		453		48		15		(79)		(17)
Other short-term borrowed funds		2,006		1,499		1,494		1,856		1,505		507		34		501		33
Derivative liabilities		449		425		331		310		242		24		6		207		86
Deferred taxes, net		430		456		475		571		744		(26)		(6)		(314)		(42)
Long-term borrowed funds		15,639		13,641		13,486		11,765		13,400		1,998		15		2,239		17
Due to broker		381		—		84		—		—		381		100		381		100
Other liabilities		1,968		1,544		1,479		1,660		1,668		424		27		300		18

TOTAL LIABILITIES		138,322		134,964		133,394		132,066		131,247		3,358		2		7,075		5
STOCKHOLDERS’ EQUITY:
Preferred stock:
$25.00 par value, 100,000,000 shares authorized for each of the periods presented		543		543		247		247		247		—		—		296		120
Common stock:
$0.01 par value, 1,000,000,000 shares authorized for each of the periods presented		6		6		6		6		6		—		—		—		—
Additional paid-in capital		18,816		18,806		18,797		18,781		18,768		10		—		48		—
Retained earnings³		5,062		4,755		4,437		4,164		3,442		307		6		1,620		47
Treasury stock, at cost		(2,833)		(2,433)		(2,283)		(2,108)		(1,773)		(400)		(16)		(1,060)		(60)
Accumulated other comprehensive loss³		(1,318)		(1,210)		(1,145)		(820)		(581)		(108)		(9)		(737)		(127)

TOTAL STOCKHOLDERS’ EQUITY		20,276		20,467		20,059		20,270		20,109		(191)		(1)		167		1

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$158,598		$155,431		$153,453		$152,336		$151,356		$3,167		2%		$7,242		5%

Memo: Total tangible common equity		$13,117		$13,394		$13,280		$13,489		$13,512		($277)		(2%)		($395)		(3%)

As of January 1, 2018, we adopted ASU 2016-01, Financial Instruments, Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which requires separate presentation of financial assets and financial liabilities by measurement category and form of financial assets on the balance sheet.

²	Balances are net of certain short-term receivables associated with reverse repurchase agreements.

³	The December 31, 2017 balances reflect the retrospective adoption of FASB ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.

LOANS AND DEPOSITS

(in millions)


PERIOD-END BALANCES	AS OF										SEPTEMBER 30, 2018 CHANGE
	Sept 30, 2018		June 30, 2018		Mar 31, 2018		Dec 31, 2017		Sept 30, 2017		June 30, 2018				Sept 30, 2017
											$		%		$		%
LOANS AND LEASES:

Commercial		$39,770		$39,278		$38,277		$37,562		$37,706		$492		1%		$2,064		5%

Commercial real estate		12,630		12,528		11,775		11,308		11,426		102		1		1,204		11

Leases		3,005		3,082		3,092		3,161		3,249		(77)		(2)		(244)		(8)


Total commercial loans and leases		55,405		54,888		53,144		52,031		52,381		517		1		3,024		6


Residential mortgages		18,493		17,814		17,346		17,045		16,619		679		4		1,874		11

Home equity loans		1,131		1,211		1,298		1,392		1,483		(80)		(7)		(352)		(24)

Home equity lines of credit		12,863		13,014		13,190		13,483		13,555		(151)		(1)		(692)		(5)

Home equity loans serviced by others¹		429		465		504		542		599		(36)		(8)		(170)		(28)

Home equity lines of credit serviced by others¹		114		124		136		149		166		(10)		(8)		(52)		(31)

Automobile		12,255		12,517		12,794		13,204		13,311		(262)		(2)		(1,056)		(8)

Education		8,712		8,450		8,324		8,134		8,014		262		3		698		9

Credit card		1,911		1,877		1,808		1,848		1,754		34		2		157		9

Other retail		3,407		3,047		2,881		2,789		2,269		360		12		1,138		50


Total retail loans		59,315		58,519		58,281		58,586		57,770		796		1		1,545		3


Total loans and leases		$114,720		$113,407		$111,425		$110,617		$110,151		$1,313		1%		$4,569		4%


Loans held for sale, at fair value		1,303		521		478		497		500		782		150		803		161

Other loans held for sale		27		189		322		221		724		(162)		(86)		(697)		(96)


Loans and leases and loans held for sale		$116,050		$114,117		$112,225		$111,335		$111,375		$1,933		2%		$4,675		4%


DEPOSITS:

Demand		$29,785		$29,439		$28,437		$29,279		$28,643		$346		1%		$1,142		4%

Checking with interest		22,323		22,775		21,767		22,229		21,756		(452)		(2)		567		3

Regular savings		10,523		9,902		9,896		9,518		9,470		621		6		1,053		11

Money market accounts		35,613		36,139		38,880		37,454		37,070		(526)		(1)		(1,457)		(4)

Term deposits		18,831		18,818		16,750		16,609		16,296		13		—		2,535		16


Total deposits		$117,075		$117,073		$115,730		$115,089		$113,235		$2		—%		$3,840		3%

¹	Our Serviced by Others (“SBO”) portfolio consists of purchased loans and lines of credit that were originally serviced by others.

AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS

(in millions)


	QUARTERLY TRENDS																		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
AVERAGE BALANCES											3Q18 Change												2018 Change
	3Q18		2Q18		1Q18		4Q17		3Q17		2Q18				3Q17				2018		2017		2017
											$		%		$		%						$		%
ASSETS:
Interest-bearing cash and due from banks and deposits in banks		$1,604		$1,801		$1,442		$1,528		$1,663		($197)		(11%)		($59)		(4%)		$1,616		$1,902		($286)		(15%)

Taxable investment securities		25,225		25,197		25,433		25,678		25,588		28		—		(363)		(1)		25,284		25,702		(418)		(2)
Non-taxable investment securities		6		6		6		6		7		—		—		(1)		(14)		6		7		(1)		(14)

Total investment securities		25,231		25,203		25,439		25,684		25,595		28		—		(364)		(1)		25,290		25,709		(419)		(2)

Investment securities and interest-bearing deposits		26,835		27,004		26,881		27,212		27,258		(169)		(1)		(423)		(2)		26,906		27,611		(705)		(3)

Commercial		39,592		39,399		37,960		37,713		37,448		193		—		2,144		6		38,990		37,603		1,387		4
Commercial real estate		12,656		12,071		11,549		11,396		11,401		585		5		1,255		11		12,096		11,105		991		9
Leases		3,028		3,073		3,114		3,201		3,302		(45)		(1)		(274)		(8)		3,071		3,517		(446)		(13)

Total commercial loans and leases		55,276		54,543		52,623		52,310		52,151		733		1		3,125		6		54,157		52,225		1,932		4

Residential mortgages		18,147		17,488		17,162		16,794		16,323		659		4		1,824		11		17,603		15,755		1,848		12
Home equity loans		1,168		1,252		1,342		1,437		1,547		(84)		(7)		(379)		(24)		1,253		1,668		(415)		(25)
Home equity lines of credit		12,925		13,112		13,353		13,501		13,608		(187)		(1)		(683)		(5)		13,129		13,775		(646)		(5)
Home equity loans serviced by others¹		444		480		520		564		618		(36)		(8)		(174)		(28)		481		668		(187)		(28)
Home equity lines of credit serviced by others¹		118		130		142		156		173		(12)		(9)		(55)		(32)		130		189		(59)		(31)
Automobile		12,379		12,657		13,015		13,277		13,349		(278)		(2)		(970)		(7)		12,681		13,563		(882)		(7)
Education		8,481		8,374		8,283		8,071		7,814		107		1		667		9		8,380		7,384		996		13
Credit cards		1,909		1,854		1,828		1,803		1,738		55		3		171		10		1,864		1,699		165		10
Other retail		3,124		2,966		2,847		2,537		2,163		158		5		961		44		2,980		1,976		1,004		51

Total retail loans		58,695		58,313		58,492		58,140		57,333		382		1		1,362		2		58,501		56,677		1,824		3

Total loans and leases		113,971		112,856		111,115		110,450		109,484		1,115		1		4,487		4		112,658		108,902		3,756		3
Loans held for sale, at fair value		1,228		470		420		482		503		758		161		725		144		709		492		217		44
Other loans held for sale		129		195		255		285		234		(66)		(34)		(105)		(45)		193		158		35		22

Interest-earning assets		142,163		140,525		138,671		138,429		137,479		1,638		1		4,684		3		140,466		137,163		3,303		2
Allowance for loan and lease losses		(1,255)		(1,246)		(1,236)		(1,222)		(1,220)		(9)		(1)		(35)		(3)		(1,246)		(1,226)		(20)		(2)
Goodwill		6,926		6,887		6,887		6,887		6,887		39		1		39		1		6,900		6,882		18		—
Other noninterest-earning assets		7,790		7,087		7,201		7,017		6,866		703		10		924		13		7,362		6,744		618		9

TOTAL ASSETS		$155,624		$153,253		$151,523		$151,111		$150,012		$2,371		2%		$5,612		4%		$153,482		$149,563		$3,919		3%

LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Checking with interest		$21,780		$22,185		$21,665		$21,459		$21,909		($405)		(2%)		($129)		(1%)		$21,877		$21,457		$420		2%
Money market accounts		36,593		36,396		37,084		37,483		37,535		197		1		(942)		(3)		36,689		37,439		(750)		(2)
Regular savings		10,198		9,889		9,627		9,473		9,491		309		3		707		7		9,907		9,355		552		6
Term deposits		18,764		17,838		16,503		16,470		15,971		926		5		2,793		17		17,710		15,104		2,606		17

Total interest-bearing deposits		87,335		86,308		84,879		84,885		84,906		1,027		1		2,429		3		86,183		83,355		2,828		3
Federal funds purchased and securities sold under agreements to repurchase²		643		504		645		685		733		139		28		(90)		(12)		598		807		(209)		(26)
Other short-term borrowed funds		2,239		1,677		1,481		2,432		1,624		562		34		615		38		1,802		2,283		(481)		(21)
Long-term borrowed funds		12,793		13,394		13,549		11,658		12,210		(601)		(4)		583		5		13,242		12,755		487		4

Total borrowed funds		15,675		15,575		15,675		14,775		14,567		100		1		1,108		8		15,642		15,845		(203)		(1)

Total interest-bearing liabilities		103,010		101,883		100,554		99,660		99,473		1,127		1		3,537		4		101,825		99,200		2,625		3
Total demand deposits		29,703		28,834		28,544		28,868		28,041		869		3		1,662		6		29,031		27,886		1,145		4
Other liabilities		2,769		2,433		2,446		2,712		2,523		336		14		246		10		2,551		2,613		(62)		(2)

TOTAL LIABILITIES		135,482		133,150		131,544		131,240		130,037		2,332		2		5,445		4		133,407		129,699		3,708		3

STOCKHOLDERS’ EQUITY		20,142		20,103		19,979		19,871		19,975		39		—		167		1		20,075		19,864		211		1

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$155,624		$153,253		$151,523		$151,111		$150,012		$2,371		2%		$5,612		4%		$153,482		$149,563		$3,919		3%

Memo: Total average tangible common equity		$13,011		$13,200		$13,198		$13,266		$13,376		($189)		(1%)		($365)		(3%)		$13,136		$13,268		($132)		(1%)
Total deposits (interest-bearing and demand)		$117,038		$115,142		$113,423		$113,753		$112,947		$1,896		2%		$4,091		4%		$115,214		$111,241		$3,973		4%

¹	Our SBO portfolio consists of purchased loans and lines of credit that were originally serviced by others.

²	Balances are net of certain short-term receivables associated with reverse repurchase agreements.

AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS, CONTINUED

(in millions, except rates)


AVERAGE ANNUALIZED YIELDS AND RATES	QUARTERLY TRENDS																				FOR THE NINE MONTHS ENDED SEPTEMBER 30,
	3Q18				2Q18				1Q18				4Q17				3Q17				2018				2017
	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		1.85%		$7		1.77%		$8		1.61%		$6		1.30%		$5		1.14%		$5		1.75%		$21		0.87%		$13

Taxable investment securities		2.65		167		2.62		165		2.64		168		2.44		156		2.42		155		2.64		500		2.43		469
Non-taxable investment securities		2.60		—		2.60		—		2.60		—		2.60		—		2.60		—		2.60		—		2.60		—

Total investment securities		2.65		167		2.62		165		2.64		168		2.44		156		2.42		155		2.64		500		2.43		469

Investment securities and interest-bearing deposits				174				173				174				161				160				521				482

Commercial		4.14		419		4.07		405		3.77		357		3.65		352		3.61		344		3.99		1,181		3.45		982
Commercial real estate		4.56		147		4.39		134		4.11		119		3.80		110		3.69		108		4.36		400		3.46		292
Leases		2.74		21		2.69		21		2.61		20		2.48		20		2.54		21		2.68		62		2.50		66

Total commercial loans and leases		4.16		587		4.06		560		3.77		496		3.61		482		3.56		473		4.00		1,643		3.39		1,340

Residential mortgages		3.62		164		3.57		156		3.56		153		3.57		149		3.57		146		3.58		473		3.57		422
Home equity loans		5.93		18		5.91		18		5.76		19		5.60		20		5.72		22		5.86		55		5.71		71
Home equity lines of credit		4.66		152		4.40		144		4.20		138		3.97		135		3.93		135		4.42		434		3.68		379
Home equity loans serviced by others¹		7.45		8		7.23		9		7.31		9		7.20		11		7.04		11		7.33		26		7.06		35
Home equity lines of credit serviced by others¹		4.89		2		3.62		1		3.98		1		4.32		1		4.05		2		4.14		4		4.00		6
Automobile		3.74		117		3.60		113		3.47		112		3.39		114		3.31		111		3.60		342		3.23		328
Education		5.78		124		5.71		119		5.58		114		5.43		111		5.36		106		5.69		357		5.29		292
Credit cards		10.77		52		10.74		50		10.70		48		10.46		47		10.69		47		10.74		150		10.85		138
Other retail		8.10		63		8.10		60		7.97		56		7.92		51		7.88		43		8.06		179		7.94		117

Total retail loans		4.73		700		4.61		670		4.49		650		4.37		639		4.32		623		4.61		2,020		4.21		1,788

Total loans and leases		4.46		1,287		4.34		1,230		4.15		1,146		4.01		1,121		3.96		1,096		4.32		3,663		3.82		3,128
Loans held for sale, at fair value		4.49		14		4.15		5		3.84		4		3.70		5		3.69		5		4.27		23		3.53		13
Other loans held for sale		6.44		2		6.38		3		6.21		4		5.49		4		4.72		3		6.32		9		5.29		6

Total interest-earning assets		4.11		1,477		4.00		1,411		3.85		1,328		3.69		1,291		3.64		1,264		3.99		4,216		3.52		3,629
INTEREST-BEARING LIABILITIES:
Checking with interest		0.67		36		0.61		34		0.48		26		0.41		23		0.43		23		0.59		96		0.35		56
Money market accounts		1.03		95		0.87		79		0.71		65		0.61		58		0.57		54		0.87		239		0.50		140
Regular savings		0.12		3		0.05		1		0.05		1		0.05		1		0.04		1		0.07		5		0.04		3
Term deposits		1.68		80		1.50		67		1.30		53		1.18		48		1.09		45		1.51		200		0.99		112

Total interest-bearing deposits		0.98		214		0.84		181		0.69		145		0.61		130		0.58		123		0.84		540		0.50		311
Federal funds purchased and securities sold under agreements to repurchase²		0.93		2		0.73		1		0.68		1		0.45		1		0.50		1		0.78		4		0.36		2
Other short-term borrowed funds		3.21		19		3.48		14		2.40		9		1.58		9		1.55		7		3.08		42		1.23		22
Long-term borrowed funds		2.94		94		2.77		94		2.44		82		2.42		71		2.31		71		2.71		270		2.10		201

Total borrowed funds		2.90		115		2.78		109		2.36		92		2.19		81		2.14		79		2.68		316		1.88		225

Total interest-bearing liabilities		1.27		329		1.14		290		0.95		237		0.84		211		0.80		202		1.12		856		0.72		536
INTEREST RATE SPREAD		2.84				2.87				2.90				2.85				2.84				2.87				2.80
NET INTEREST MARGIN		3.19%				3.18%				3.16%				3.08%				3.05%				3.18%				3.00%
Memo: Total deposit costs		0.73%		$214		0.63%		$181		0.52%		$145		0.45%		$130		0.43%		$123		0.63%		$540		0.37%		$311

¹	Our SBO portfolio consists of purchased loans and lines of credit that were originally serviced by others.

²	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

(in millions, except ratio data)


	THIRD QUARTER 2018								SECOND QUARTER 2018								CHANGE
																	3Q18 from 2Q18
	Consumer Banking		Commercial Banking		Other¹		Consolidated		Consumer Banking		Commercial Banking		Other¹		Consolidated		$/bps		%
Net interest income		$776		$380		($8)		$1,148		$759		$376		($14)		$1,121		$27		2%
Noninterest income		258		140		18		416		228		140		20		388		28		7

Total revenue		1,034		520		10		1,564		987		516		6		1,509		55		4
Noninterest expense		686		202		22		910		658		200		17		875		35		4

Profit (loss) before provision for credit losses		348		318		(12)		654		329		316		(11)		634		20		3
Provision for credit losses		71		14		(7)		78		66		9		10		85		(7)		(8)

Income (loss) before income tax expense (benefit)		277		304		(5)		576		263		307		(21)		549		27		5
Income tax expense (benefit)		70		70		(7)		133		66		70		(12)		124		9		7

Net income (loss)		$207		$234		$2		$443		$197		$237		($9)		$425		$18		4%

Average Balances
Total assets		$62,974		$52,871		$39,779		$155,624		$61,232		$52,170		$39,851		$153,253		$2,371		2%
Total loans and leases²		61,045		51,881		2,402		115,328		59,830		51,202		2,489		113,521		1,807		2
Deposits		78,128		31,224		7,686		117,038		77,402		30,214		7,526		115,142		1,896		2
Interest-earning assets		61,097		52,137		28,929		142,163		59,880		51,404		29,241		140,525		1,638		1
Key Metrics
Net interest margin		5.04%		2.89%		NM		3.19%		5.08%		2.93%		NM		3.18%		1 bps
Efficiency ratio		66.29		38.83		NM		58.20		66.68		38.80		NM		57.95		25 bps
Loans-to-deposits ratio (period-end balances)³		77.15		169.64		NM		97.99		76.56		167.02		NM		96.87		112 bps
Loans-to-deposits ratio (average balances)³		76.79		165.17		NM		97.38		76.92		168.23		NM		98.01		(63) bps
Return on average total tangible assets		1.31		1.75		NM		1.18		1.29		1.82		NM		1.16		2 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, capital, revenues, provision for credit losses and expenses, including income tax expense, not attributed to our Consumer Banking or Commercial Banking segments.

²	Includes loans held for sale.

³	In the third quarter of 2018, we revised our method of calculating the loans-to-deposits ratio to exclude loans held for sale. Prior periods have been adjusted to conform with the current period presentation.

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, CONTINUED

(in millions, except ratio data)


	THIRD QUARTER 2018								THIRD QUARTER 2017								CHANGE
																	3Q18 from 3Q17
	Consumer Banking		Commercial Banking		Other¹		Consolidated		Consumer Banking		Commercial Banking		Other¹		Consolidated		$/bps		%
Net interest income		$776		$380		($8)		$1,148		$674		$354		$34		$1,062		$86		8%
Noninterest income		258		140		18		416		227		136		18		381		35		9

Total revenue		1,034		520		10		1,564		901		490		52		1,443		121		8
Noninterest expense		686		202		22		910		648		195		15		858		52		6

Profit (loss) before provision for credit losses		348		318		(12)		654		253		295		37		585		69		12
Provision for credit losses		71		14		(7)		78		65		—		7		72		6		8

Income (loss) before income tax expense (benefit)		277		304		(5)		576		188		295		30		513		63		12
Income tax expense (benefit)		70		70		(7)		133		66		94		5		165		(32)		(19)

Net income		$207		$234		$2		$443		$122		$201		$25		$348		$95		27%

Average Balances
Total assets		$62,974		$52,871		$39,779		$155,624		$60,012		$49,833		$40,167		$150,012		$5,612		4%
Total loans and leases²		61,045		51,881		2,402		115,328		58,679		48,746		2,796		110,221		5,107		5
Deposits		78,128		31,224		7,686		117,038		75,085		30,751		7,111		112,947		4,091		4
Interest-earning assets		61,097		52,137		28,929		142,163		58,729		48,875		29,875		137,479		4,684		3
Key Metrics
Net interest margin		5.04%		2.89%		NM		3.19%		4.55%		2.88%		NM		3.05%		14 bps
Efficiency ratio		66.29		38.83		NM		58.20		71.88		39.39		NM		59.41		(121) bps
Loans-to-deposits ratio (period-end balances)³		77.15		169.64		NM		97.99		78.13		157.87		NM		97.28		71 bps
Loans-to-deposits ratio (average balances)³		76.79		165.17		NM		97.38		77.69		157.26		NM		96.93		45 bps
Return on average total tangible assets		1.31		1.75		NM		1.18		0.81		1.60		NM		0.96		22 bps

²	Includes loans held for sale.

³	In the third quarter of 2018, we revised our method of calculating the loans-to-deposits ratio to exclude loans held for sale. Prior periods have been adjusted to conform with the current period presentation.

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, CONTINUED

(in millions, except ratio data)


	FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018								FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017								CHANGE
																	2018 from 2017
	Consumer Banking		Commercial Banking		Other¹		Consolidated		Consumer Banking		Commercial Banking		Other¹		Consolidated		$/bps		%
Net interest income²		$2,268		$1,113		($21)		$3,360		$1,969		$1,044		$80		$3,093		$267		9%
Noninterest income		708		405		62		1,175		676		400		54		1,130		45		4

Total revenue		2,976		1,518		41		4,535		2,645		1,444		134		4,223		312		7
Noninterest expense		2,000		610		58		2,668		1,939		577		60		2,576		92		4

Profit (loss) before provision for credit losses		976		908		(17)		1,867		706		867		74		1,647		220		13
Provision for credit losses		209		19		13		241		189		20		29		238		3		1

Income (loss) before income tax expense (benefit)		767		889		(30)		1,626		517		847		45		1,409		217		15
Income tax expense (benefit)		193		203		(26)		370		182		279		(38)		423		(53)		(13)

Net income (loss)		$574		$686		($4)		$1,256		$335		$568		$83		$986		$270		27%

Average Balances
Total assets		$61,857		$51,820		$39,805		$153,482		$59,310		$49,604		$40,649		$149,563		$3,919		3%
Total loans and leases³		60,277		50,799		2,484		113,560		57,975		48,560		3,017		109,552		4,008		4
Deposits		76,992		30,736		7,486		115,214		74,778		29,496		6,967		111,241		3,973		4
Interest-earning assets		60,328		51,016		29,122		140,466		58,026		48,696		30,441		137,163		3,303		2
Key Metrics
Net interest margin		5.03%		2.92%		NM		3.18%		4.54%		2.87%		NM		3.00%		18 bps
Efficiency ratio		67.20		40.16		NM		58.84		73.28		39.89		NM		60.99		(215) bps
Loans-to-deposits ratio (period-end balances)⁴		77.15		169.64		NM		97.99		78.13		157.87		NM		97.28		71 bps
Loans-to-deposits ratio (average balances)⁴		77.59		164.08		NM		97.78		77.04		163.72		NM		97.90		(12) bps
Return on average total tangible assets		1.24		1.77		NM		1.14		0.76		1.53		NM		0.92		22 bps

We periodically evaluate and refine our methodologies used to allocate items among our business operating segments. In the first quarter of 2018, we enhanced our assumptions for the liquidity and deposit component within our Funds Transfer Pricing (“FTP”) methodology which provides a credit for sources of funds and a charge for the use of funds by each business operating segment. The enhancement largely provides increased credit for the stability of deposit composition, and an increased charge for unused commitments under lending arrangements. Prior periods have not been adjusted for this change.

³	Includes loans held for sale.

⁴	In the third quarter of 2018, we revised our method of calculating the loans-to-deposits ratio to exclude loans held for sale. Prior periods have been adjusted to conform with the current period presentation.

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING

(in millions, except ratio data)


	QUARTERLY TRENDS																		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
CONSUMER BANKING											3Q18 Change												2018 Change
	3Q18		2Q18		1Q18		4Q17		3Q17		2Q18				3Q17				2018		2017		2017
											$/bps		%		$/bps		%						$/bps		%
Net interest income¹		$776		$759		$733		$682		$674		$17		2%		$102		15%		$2,268		$1,969		$299		15%
Noninterest income		258		228		222		229		227		30		13		31		14		708		676		32		5

Total revenue		1,034		987		955		911		901		47		5		133		15		2,976		2,645		331		13
Noninterest expense		686		658		656		654		648		28		4		38		6		2,000		1,939		61		3

Profit before provision for credit losses		348		329		299		257		253		19		6		95		38		976		706		270		38
Provision for credit losses		71		66		72		76		65		5		8		6		9		209		189		20		11

Income before income tax expense		277		263		227		181		188		14		5		89		47		767		517		250		48
Income tax expense		70		66		57		64		66		4		6		4		6		193		182		11		6

Net income		$207		$197		$170		$117		$122		$10		5%		$85		70%		$574		$335		$239		71%

Average Balances
Total assets		$62,974		$61,232		$61,348		$60,911		$60,012		$1,742		3%		$2,962		5%		$61,857		$59,310		$2,547		4%
Total loans and leases²		61,045		59,830		59,942		59,547		58,679		1,215		2		2,366		4		60,277		57,975		2,302		4
Deposits		78,128		77,402		75,416		75,154		75,085		726		1		3,043		4		76,992		74,778		2,214		3
Interest-earning assets		61,097		59,880		59,994		59,598		58,729		1,217		2		2,368		4		60,328		58,026		2,302		4
Key Metrics
Net interest margin		5.04%		5.08%		4.96%		4.54%		4.55%		(4) bps				49 bps				5.03%		4.54%		49 bps
Efficiency ratio		66.29		66.68		68.72		71.90		71.88		(39) bps				(559) bps				67.20		73.28		(608) bps
Loans-to-deposits ratio (period-end balances)³		77.15		76.56		76.43		79.05		78.13		59 bps				(98) bps				77.15		78.13		(98) bps
Loans-to-deposits ratio (average balances)³		76.79		76.92		79.14		78.80		77.69		(13) bps				(90) bps				77.59		77.04		55 bps
Return on average total tangible assets		1.31		1.29		1.12		0.76		0.81		2 bps				50 bps				1.24		0.76		48 bps

²	Includes loans held for sale.

³	In the third quarter of 2018, we revised our method of calculating the loans-to-deposits ratio to exclude loans held for sale. Prior periods have been adjusted to conform with the current period presentation.

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS																		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
											3Q18 Change												2018 Change
	3Q18		2Q18		1Q18		4Q17		3Q17		2Q18				3Q17				2018		2017		2017
											$/bps		%		$/bps		%						$/bps		%
Mortgage Banking Fees¹
Production revenue		$31		$18		$15		$21		$22		$13		72%		$9		41%		$64		$63		$1		2%
Mortgage servicing revenue		16		9		7		6		5		7		78		11		220		32		16		16		100
MSR valuation changes, net of hedge impact		2		—		3		1		—		2		100		2		100		5		1		4		NM

Total mortgage banking fees		$49		$27		$25		$28		$27		$22		81%		$22		81%		$101		$80		$21		26%

Gain on sale of secondary originations^1,2		0.96%		2.24%		2.17%		2.47%		2.64%		(128) bps				(168) bps				1.30%		2.52%		(122) bps

Residential Real Estate Originations¹
Retail		$1,939		$1,729		$1,367		$1,687		$1,875		$210		12%		$64		3%		$5,035		$5,490		($455)		(8%)
Third Party		2,178		—		—		—		—		2,178		100		$2,178		100		2,178		—		2,178		100

Total		$4,117		$1,729		$1,367		$1,687		$1,875		$2,388		138%		$2,242		120%		$7,213		$5,490		$1,723		31%


Originated for sale		74%		42%		45%		45%		41%		3,200 bps				3,300 bps				61%		39%		2,200 bps
Originated for investment		26		58		55		55		59		(3,200) bps				(3,300) bps				39		61		(2,200) bps

Total		100%		100%		100%		100%		100%										100%		100%


Mortgage Servicing Information (UPB)¹
Loans serviced for others		$67,520		$21,589		$20,248		$17,904		$17,718		$45,931		213%		$49,802		NM		$67,520		$17,718		$49,802		NM
Owned loans serviced		17,709		16,553		15,963		15,598		15,197		1,156		7		2,512		17		17,709		15,197		2,512		17

Total		$85,229		$38,142		$36,211		$33,502		$32,915		$47,087		123%		$52,314		159%		$85,229		$32,915		$52,314		159%


MSR carrying value^1,3		$831		$217		$201		$198		$167		$614		NM		$664		NM		$831		$167		$664		NM

¹	Beginning in the third quarter of 2018, results reflect the impact of the August 1, 2018 Franklin American Mortgage Company acquisition.

²	In the first quarter 2018, we revised our method of calculating the gain on sale of secondary originations. Prior periods have been adjusted to conform with the current period presentation.

³	The MSR carrying value as of September 30, 2018 reflects $612 million held at fair value and $219 million held at the lower of cost or market. The MSR carrying value for all prior periods is at the lower of cost or market.

SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING

(in millions, except ratio data)


	QUARTERLY TRENDS																		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
COMMERCIAL BANKING											3Q18 Change												2018 Change
	3Q18		2Q18		1Q18		4Q17		3Q17		2Q18				3Q17				2018		2017		2017
											$/bps		%		$/bps		%						$/bps		%
Net interest income¹		$380		$376		$357		$367		$354		$4		1%		$26		7%		$1,113		$1,044		$69		7%
Noninterest income		140		140		125		138		136		—		—		4		3		405		400		5		1

Total revenue		520		516		482		505		490		4		1		30		6		1,518		1,444		74		5
Noninterest expense		202		200		208		195		195		2		1		7		4		610		577		33		6

Profit before provision for credit losses		318		316		274		310		295		2		1		23		8		908		867		41		5
Provision for credit losses		14		9		(4)		(1)		—		5		56		14		100		19		20		(1)		(5)

Income before income tax expense		304		307		278		311		295		(3)		(1)		9		3		889		847		42		5
Income tax expense		70		70		63		105		94		—		—		(24)		(26)		203		279		(76)		(27)

Net income		$234		$237		$215		$206		$201		($3)		(1%)		$33		16%		$686		$568		$118		21%

Average Balances
Total assets		$52,871		$52,170		$50,393		$50,169		$49,833		$701		1%		$3,038		6%		$51,820		$49,604		$2,216		4%
Total loans and leases²		51,881		51,202		49,285		48,938		48,746		679		1		3,135		6		50,799		48,560		2,239		5
Deposits		31,224		30,214		30,766		31,514		30,751		1,010		3		473		2		30,736		29,496		1,240		4
Interest-earning assets		52,137		51,404		49,479		49,118		48,875		733		1		3,262		7		51,016		48,696		2,320		5
Key Metrics
Net interest margin		2.89%		2.93%		2.93%		2.96%		2.88%		(4) bps				1 bps				2.92%		2.87%		5 bps
Efficiency ratio		38.83		38.80		43.07		38.84		39.39		3 bps				(56) bps				40.16		39.89		27 bps
Loans-to-deposits ratio (period-end balances)³		169.64		167.02		160.16		151.54		157.87		262 bps				1,177 bps				169.64		157.87		NM
Loans-to-deposits ratio (average balances)³		165.17		168.23		158.84		154.03		157.26		(306) bps				791 bps				164.08		163.72		36 bps
Return on average total tangible assets		1.75		1.82		1.73		1.62		1.60		(7) bps				15 bps				1.77		1.53		24 bps

²	Includes loans held for sale.

³	In the third quarter of 2018, we revised our method of calculating the loans-to-deposits ratio to exclude loans held for sale. Prior periods have been adjusted to conform with the current period presentation.

SEGMENT FINANCIAL HIGHLIGHTS - OTHER

(in millions)


	QUARTERLY TRENDS																		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
OTHER¹											3Q18 Change												2018 Change
	3Q18		2Q18		1Q18		4Q17		3Q17		2Q18				3Q17				2018		2017		2017
											$/bps		%		$/bps		%						$/bps		%
Net interest income		($8)		($14)		$1		$31		$34		$6		43%		($42)		(124%)		($21)		$80		($101)		(126%)
Noninterest income		18		20		24		37		18		(2)		(10)		—		—		62		54		8		15

Total revenue		10		6		25		68		52		4		67		(42)		(81)		41		134		(93)		(69)
Noninterest expense		22		17		19		49		15		5		29		7		47		58		60		(2)		(3)

(Loss) profit before provision for credit losses		(12)		(11)		6		19		37		(1)		(9)		(49)		(132)		(17)		74		(91)		(123)
Provision for credit losses		(7)		10		10		8		7		(17)		(170)		(14)		(200)		13		29		(16)		(55)

(Loss) income before income tax (benefit) expense		(5)		(21)		(4)		11		30		16		76		(35)		(117)		(30)		45		(75)		(167)
Income tax (benefit) expense		(7)		(12)		(7)		(332)		5		5		42		(12)		(240)		(26)		(38)		12		32

Net income (loss)		$2		($9)		$3		$343		$25		$11		122%		($23)		(92%)		($4)		$83		($87)		(105%)

Average Balances
Total assets		$39,779		$39,851		$39,782		$40,031		$40,167		($72)		—%		($388)		(1%)		$39,805		$40,649		($844)		(2%)
Total loans and leases²		2,402		2,489		2,563		2,732		2,796		(87)		(3)		(394)		(14)		2,484		3,017		(533)		(18)
Deposits		7,686		7,526		7,241		7,085		7,111		160		2		575		8		7,486		6,967		519		7
Interest-earning assets		28,929		29,241		29,198		29,713		29,875		(312)		(1)		(946)		(3)		29,122		30,441		(1,319)		(4)

²	Includes loans held for sale.

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATED

(in millions, except ratio data)


	QUARTERLY TRENDS																		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
CONSOLIDATED											3Q18 Change												2018 Change
	3Q18		2Q18		1Q18		4Q17		3Q17		2Q18				3Q17				2018		2017		2017
											$/bps		%		$/bps		%						$/bps		%

Net interest income		$1,148		$1,121		$1,091		$1,080		$1,062		$27		2%		$86		8%		$3,360		$3,093		$267		9%

Noninterest income		416		388		371		404		381		28		7		35		9		1,175		1,130		45		4


Total revenue		1,564		1,509		1,462		1,484		1,443		55		4		121		8		4,535		4,223		312		7

Noninterest expense		910		875		883		898		858		35		4		52		6		2,668		2,576		92		4


Profit before provision for credit losses		654		634		579		586		585		20		3		69		12		1,867		1,647		220		13

Provision for credit losses		78		85		78		83		72		(7)		(8)		6		8		241		238		3		1


Income before income tax expense (benefit)		576		549		501		503		513		27		5		63		12		1,626		1,409		217		15

Income tax expense (benefit)		133		124		113		(163)		165		9		7		(32)		(19)		370		423		(53)		(13)


Net income		$443		$425		$388		$666		$348		$18		4%		$95		27%		$1,256		$986		$270		27%


Average Balances

Total assets		$155,624		$153,253		$151,523		$151,111		$150,012		$2,371		2%		$5,612		4%		$153,482		$149,563		$3,919		3%

Total loans and leases¹		115,328		113,521		111,790		111,217		110,221		1,807		2		5,107		5		113,560		109,552		4,008		4

Deposits		117,038		115,142		113,423		113,753		112,947		1,896		2		4,091		4		115,214		111,241		3,973		4

Interest-earning assets		142,163		140,525		138,671		138,429		137,479		1,638		1		4,684		3		140,466		137,163		3,303		2

Key Metrics

Net interest margin		3.19%		3.18%		3.16%		3.08%		3.05%		1 bps				14 bps				3.18%		3.00%		18 bps

Efficiency ratio		58.20		57.95		60.43		60.52		59.41		25 bps				(121) bps				58.84		60.99		(215) bps

Loans-to-deposits ratio (period-end balances)²		97.99		96.87		96.28		96.11		97.28		112 bps				71 bps				97.99		97.28		71 bps

Loans-to-deposits ratio (average balances)²		97.38		98.01		97.96		97.10		96.93		(63) bps				45 bps				97.78		97.90		(12) bps

Return on average total tangible assets		1.18		1.16		1.08		1.83		0.96		2 bps				22 bps				1.14		0.92		22 bps

¹	Includes loans held for sale.

²	In the third quarter of 2018, we revised our method of calculating the loans-to-deposits ratio to exclude loans held for sale. Prior periods have been adjusted to conform with the current period presentation.

CREDIT-RELATED INFORMATION

(in millions)


	AS OF										SEPTEMBER 30, 2018 CHANGE
	Sept 30, 2018		June 30, 2018		Mar 31, 2018		Dec 31, 2017		Sept 30, 2017		June 30, 2018				Sept 30, 2017
											$		%		$		%
CREDIT EXPOSURE:
Loans and leases:
Commercial		$39,770		$39,278		$38,277		$37,562		$37,706		$492		1%		$2,064		5%
Commercial real estate		12,630		12,528		11,775		11,308		11,426		102		1		1,204		11
Leases		3,005		3,082		3,092		3,161		3,249		(77)		(2)		(244)		(8)

Total commercial loans and leases		55,405		54,888		53,144		52,031		52,381		517		1		3,024		6
Residential mortgages		18,493		17,814		17,346		17,045		16,619		679		4		1,874		11
Home equity loans		1,131		1,211		1,298		1,392		1,483		(80)		(7)		(352)		(24)
Home equity lines of credit		12,863		13,014		13,190		13,483		13,555		(151)		(1)		(692)		(5)
Home equity loans serviced by others¹		429		465		504		542		599		(36)		(8)		(170)		(28)
Home equity lines of credit serviced by others¹		114		124		136		149		166		(10)		(8)		(52)		(31)
Automobile		12,255		12,517		12,794		13,204		13,311		(262)		(2)		(1,056)		(8)
Education		8,712		8,450		8,324		8,134		8,014		262		3		698		9
Credit card		1,911		1,877		1,808		1,848		1,754		34		2		157		9
Other retail		3,407		3,047		2,881		2,789		2,269		360		12		1,138		50

Total retail loans		59,315		58,519		58,281		58,586		57,770		796		1		1,545		3

Total loans and leases		114,720		113,407		111,425		110,617		110,151		1,313		1		4,569		4
Derivative receivable:
Derivative receivable - commercial		166		217		268		611		588		(51)		(24)		(422)		(72)
Derivative receivable - retail		7		7		6		6		8		—		—		(1)		(13)

Total derivative receivable		173		224		274		617		596		(51)		(23)		(423)		(71)

Total credit-related assets		114,893		113,631		111,699		111,234		110,747		1,262		1		4,146		4
Lending-related arrangements:
Undrawn commitments to extend credit - commercial		38,982		37,657		35,915		35,745		34,871		1,325		4		4,111		12
Financial standby letters of credit		1,934		1,974		1,966		2,036		2,080		(40)		(2)		(146)		(7)
Performance letters of credit		131		120		109		47		42		11		9		89		212
Commercial letters of credit		74		56		43		53		68		18		32		6		9
Marketing rights		37		39		41		41		41		(2)		(5)		(4)		(10)
Risk participation agreements		14		14		18		16		20		—		—		(6)		(30)

Total commercial lending-related arrangements		41,172		39,860		38,092		37,938		37,122		1,312		3		4,050		11
Undrawn commitments to extend credit - retail		27,747		27,732		27,192		27,214		27,063		15		—		684		3
Residential mortgage loans sold with recourse		6		6		6		7		7		—		—		(1)		(14)

Total retail lending-related arrangements		27,753		27,738		27,198		27,221		27,070		15		—		683		3

Total lending-related arrangements		68,925		67,598		65,290		65,159		64,192		1,327		2		4,733		7

Total credit exposure		$183,818		$181,229		$176,989		$176,393		$174,939		$2,589		1%		$8,879		5%

Memo: Total credit exposure by product:
Commercial exposure		$96,743		$94,965		$91,504		$90,580		$90,091		$1,778		2%		$6,652		7%
Retail exposure		87,075		86,264		85,485		85,813		84,848		811		1		2,227		3

Total credit exposure		$183,818		$181,229		$176,989		$176,393		$174,939		$2,589		1%		$8,879		5%

¹	Our SBO portfolio consists of purchased loans and lines of credit that were originally serviced by others.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


	AS OF										SEPTEMBER 30, 2018 CHANGE
	Sept 30, 2018		June 30, 2018		Mar 31, 2018		Dec 31, 2017		Sept 30, 2017		June 30, 2018				Sept 30, 2017
											$/bps		%		$/bps		%
NONPERFORMING ASSETS:
Commercial		$228		$249		$244		$238		$297		($21)		(8%)		($69)		(23%)
Commercial real estate		30		31		30		27		28		(1)		(3)		2		7
Leases		—		—		—		—		—		—		—		—		—

Total commercial loans and leases		258		280		274		265		325		(22)		(8)		(67)		(21)
Residential mortgages		136		119		128		128		124		17		14		12		10
Home equity loans		53		59		66		72		76		(6)		(10)		(23)		(30)
Home equity lines of credit		221		225		235		233		236		(4)		(2)		(15)		(6)
Home equity loans serviced by others¹		19		19		23		25		26		—		—		(7)		(27)
Home equity lines of credit serviced by others¹		16		17		17		18		21		(1)		(6)		(5)		(24)
Automobile		67		62		60		70		66		5		8		1		2
Education		38		40		41		38		38		(2)		(5)		—		—
Credit card		17		17		18		17		15		—		—		2		13
Other retail		7		7		6		5		5		—		—		2		40

Total retail loans		574		565		594		606		607		9		2		(33)		(5)

Nonperforming loans and leases		832		845		868		871		932		(13)		(2)		(100)		(11)

Other nonperforming assets - Retail		31		29		34		36		37		2		7		(6)		(16)

Nonperforming assets		$863		$874		$902		$907		$969		($11)		(1%)		($106)		(11%)

NONPERFORMING ASSETS BY PRODUCT:
Commercial		$258		$280		$274		$265		$325		($22)		(8%)		($67)		(21%)
Retail		605		594		628		642		644		11		2		(39)		(6)

Total nonperforming assets		$863		$874		$902		$907		$969		($11)		(1%)		($106)		(11%)

ASSET QUALITY RATIOS:
Allowance for loan and lease losses to loans and leases		1.08%		1.10%		1.12%		1.12%		1.11%		(2) bps				(3) bps
Allowance for loan and lease losses to nonperforming loans and leases		149.29		148.20		143.60		141.96		131.35		109 bps				NM
Nonperforming loans and leases to loans and leases		0.73		0.75		0.78		0.79		0.85		(2) bps				(12) bps
Nonperforming assets to total assets		0.54		0.56		0.59		0.60		0.64		(2) bps				(10) bps

¹	Our SBO portfolio consists of purchased loans and lines of credit that were originally serviced by others.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS																		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
											3Q18 Change												2018 Change
	3Q18		2Q18		1Q18		4Q17		3Q17		2Q18				3Q17				2018		2017		2017
											$		%		$		%						$		%
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS
GROSS CHARGE-OFFS:
Commercial		$14		$14		$3		$15		$3		$—		—%		$11		NM		$31		$47		($16)		(34%)
Commercial real estate		4		—		—		—		9		4		100		(5)		(56)		4		13		(9)		(69)
Leases		—		—		—		—		—		—		—		—		—		—		—		—		—

Total commercial loans and leases		18		14		3		15		12		4		29		6		50		35		60		(25)		(42)
Residential mortgages		2		2		2		2		3		—		—		(1)		(33)		6		9		(3)		(33)
Home equity loans		1		1		3		2		4		—		—		(3)		(75)		5		9		(4)		(44)
Home equity lines of credit		6		7		7		7		8		(1)		(14)		(2)		(25)		20		27		(7)		(26)
Home equity loans serviced by others¹		1		2		3		3		3		(1)		(50)		(2)		(67)		6		12		(6)		(50)
Home equity lines of credit serviced by others¹		1		1		1		—		1		—		—		—		—		3		5		(2)		(40)
Automobile		39		36		46		50		46		3		8		(7)		(15)		121		131		(10)		(8)
Education		17		19		15		19		13		(2)		(11)		4		31		51		40		11		28
Credit card		17		18		16		15		15		(1)		(6)		2		13		51		46		5		11
Other retail		25		20		20		18		15		5		25		10		67		65		42		23		55

Total retail loans		109		106		113		116		108		3		3		1		1		328		321		7		2

Total gross charge-offs		$127		$120		$116		$131		$120		$7		6%		$7		6%		$363		$381		($18)		(5%)

GROSS RECOVERIES:
Commercial		$2		$2		$5		$13		$12		$—		—%		($10)		(83%)		$9		$24		($15)		(63%)
Commercial real estate		—		—		1		—		—		—		—		—		—		1		3		(2)		(67)
Leases		—		—		—		—		—		—		—		—		—		—		—		—		—

Total commercial loans and leases		2		2		6		13		12		—		—		(10)		(83)		10		27		(17)		(63)
Residential mortgages		1		1		2		1		2		—		—		(1)		(50)		4		5		(1)		(20)
Home equity loans		2		4		3		3		4		(2)		(50)		(2)		(50)		9		10		(1)		(10)
Home equity lines of credit		4		4		4		4		4		—		—		—		—		12		12		—		—
Home equity loans serviced by others¹		4		3		4		4		5		1		33		(1)		(20)		11		14		(3)		(21)
Home equity lines of credit serviced by others¹		2		2		1		1		2		—		—		—		—		5		6		(1)		(17)
Automobile		16		18		18		18		18		(2)		(11)		(2)		(11)		52		55		(3)		(5)
Education		4		4		4		5		3		—		—		1		33		12		10		2		20
Credit card		2		3		1		1		2		(1)		(33)		—		—		6		6		—		—
Other retail		4		3		3		3		3		1		33		1		33		10		9		1		11

Total retail loans		39		42		40		40		43		(3)		(7)		(4)		(9)		121		127		(6)		(5)

Total gross recoveries		$41		$44		$46		$53		$55		($3)		(7%)		($14)		(25%)		$131		$154		($23)		(15%)

NET CHARGE-OFFS (RECOVERIES):
Commercial		$12		$12		($2)		$2		($9)		$—		—%		$21		233%		$22		$23		($1)		(4%)
Commercial real estate		4		—		(1)		—		9		4		100		(5)		(56)		3		10		(7)		(70)
Leases		—		—		—		—		—		—		—		—		—		—		—		—		—

Total commercial loans and leases		16		12		(3)		2		—		4		33		16		100		25		33		(8)		(24)
Residential mortgages		1		1		—		1		1		—		—		—		—		2		4		(2)		(50)
Home equity loans		(1)		(3)		—		(1)		—		2		67		(1)		100		(4)		(1)		(3)		NM
Home equity lines of credit		2		3		3		3		4		(1)		(33)		(2)		(50)		8		15		(7)		(47)
Home equity loans serviced by others¹		(3)		(1)		(1)		(1)		(2)		(2)		(200)		(1)		(50)		(5)		(2)		(3)		(150)
Home equity lines of credit serviced by others¹		(1)		(1)		—		(1)		(1)		—		—		—		—		(2)		(1)		(1)		(100)
Automobile		23		18		28		32		28		5		28		(5)		(18)		69		76		(7)		(9)
Education		13		15		11		14		10		(2)		(13)		3		30		39		30		9		30
Credit card		15		15		15		14		13		—		—		2		15		45		40		5		13
Other retail		21		17		17		15		12		4		24		9		75		55		33		22		67

Total retail loans		70		64		73		76		65		6		9		5		8		207		194		13		7

Total net charge-offs (recoveries)		$86		$76		$70		$78		$65		$10		13%		$21		32%		$232		$227		$5		2%

¹	Our SBO portfolio consists of purchased loans and lines of credit that were originally serviced by others.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except rates)


	QUARTERLY TRENDS																		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
											3Q18 Change												2018 Change
	3Q18		2Q18		1Q18		4Q17		3Q17		2Q18				3Q17				2018		2017		2017
											$/bps		%		$/bps		%						$/bps		%
ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES
Commercial		0.13%		0.12%		(0.02%)		0.02%		(0.09%)		1 bps				22 bps				0.08%		0.08%		— bps
Commercial real estate		0.11		—		(0.02)		(0.01)		0.33		11 bps				(22) bps				0.04		0.12		(8) bps
Leases		—		—		(0.01)		—		—		— bps				— bps				—		—		— bps
Total commercial loans and leases		0.12		0.09		(0.02)		0.01		0.01		3 bps				11 bps				0.06		0.09		(3) bps
Residential mortgages		0.02		0.02		—		0.01		0.03		— bps				(1) bps				0.01		0.03		(2) bps
Home equity loans		(0.50)		(0.71)		0.04		(0.40)		(0.05)		21 bps				(45) bps				(0.38)		(0.07)		(31) bps
Home equity lines of credit		0.04		0.10		0.10		0.07		0.12		(6) bps				(8) bps				0.08		0.15		(7) bps
Home equity loans serviced by others¹		(2.03)		(1.53)		(0.62)		(0.92)		(0.99)		(50) bps				(104) bps				(1.36)		(0.37)		(99) bps
Home equity lines of credit serviced by others¹		(4.97)		(3.33)		0.31		(1.01)		(2.51)		(164) bps				(246) bps				(2.52)		(0.59)		(193) bps
Automobile		0.76		0.57		0.87		0.95		0.83		19 bps				(7) bps				0.73		0.75		(2) bps
Education		0.61		0.72		0.53		0.75		0.48		(11) bps				13 bps				0.62		0.53		9 bps
Credit card		3.06		3.36		3.22		2.95		2.93		(30) bps				13 bps				3.21		3.16		5 bps
Other retail		2.64		2.31		2.40		2.50		2.13		33 bps				51 bps				2.46		2.23		23 bps
Total retail loans		0.47		0.44		0.50		0.52		0.44		3 bps				3 bps				0.47		0.46		1 bps
Total loans and leases		0.30%		0.27%		0.26%		0.28%		0.24%		3 bps				6 bps				0.27%		0.28%		(1) bps
Memo: Average loans:
Commercial		$39,592		$39,399		$37,960		$37,713		$37,448		$193		—%		$2,144		6%		$38,990		$37,603		$1,387		4%
Commercial real estate		12,656		12,071		11,549		11,396		11,401		585		5		1,255		11		12,096		11,105		991		9
Leases		3,028		3,073		3,114		3,201		3,302		(45)		(1)		(274)		(8)		3,071		3,517		(446)		(13)

Total commercial loans and leases		55,276		54,543		52,623		52,310		52,151		733		1		3,125		6		54,157		52,225		1,932		4
Residential mortgages		18,147		17,488		17,162		16,794		16,323		659		4		1,824		11		17,603		15,755		1,848		12
Home equity loans		1,168		1,252		1,342		1,437		1,547		(84)		(7)		(379)		(24)		1,253		1,668		(415)		(25)
Home equity lines of credit		12,925		13,112		13,353		13,501		13,608		(187)		(1)		(683)		(5)		13,129		13,775		(646)		(5)
Home equity loans serviced by others¹		444		480		520		564		618		(36)		(8)		(174)		(28)		481		668		(187)		(28)
Home equity lines of credit serviced by others¹		118		130		142		156		173		(12)		(9)		(55)		(32)		130		189		(59)		(31)
Automobile		12,379		12,657		13,015		13,277		13,349		(278)		(2)		(970)		(7)		12,681		13,563		(882)		(7)
Education		8,481		8,374		8,283		8,071		7,814		107		1		667		9		8,380		7,384		996		13
Credit card		1,909		1,854		1,828		1,803		1,738		55		3		171		10		1,864		1,699		165		10
Other retail		3,124		2,966		2,847		2,537		2,163		158		5		961		44		2,980		1,976		1,004		51

Total retail loans		58,695		58,313		58,492		58,140		57,333		382		1		1,362		2		58,501		56,677		1,824		3

Total loans and leases		$113,971		$112,856		$111,115		$110,450		$109,484		$1,115		1%		$4,487		4%		$112,658		$108,902		$3,756		3%

¹	Our SBO portfolio consists of purchased loans and lines of credit that were originally serviced by others.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS																		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
											3Q18 Change												2018 Change
	3Q18		2Q18		1Q18		4Q17		3Q17		2Q18				3Q17				2018		2017		2017
											$		%		$		%						$		%
SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES
Allowance for loan and lease losses - beginning		$1,253		$1,246		$1,236		$1,224		$1,219		$7		1%		$34		3%		$1,236		$1,236		$—		—%
Charge-offs:
Commercial		18		14		3		15		12		4		29		6		50		35		60		(25)		(42)
Retail		109		106		113		116		108		3		3		1		1		328		321		7		2

Total charge-offs		127		120		116		131		120		7		6		7		6		363		381		(18)		(5)
Recoveries:
Commercial		2		2		6		13		12		—		—		(10)		(83)		10		27		(17)		(63)
Retail		39		42		40		40		43		(3)		(7)		(4)		(9)		121		127		(6)		(5)

Total recoveries		41		44		46		53		55		(3)		(7)		(14)		(25)		131		154		(23)		(15)

Net charge-offs		86		76		70		78		65		10		13		21		32		232		227		5		2
Provision for loan and lease losses:
Commercial		8		16		23		49		24		(8)		(50)		(16)		(67)		47		8		39		NM
Retail		67		67		57		41		46		—		—		21		46		191		207		(16)		(8)

Total provision for loan and lease losses		75		83		80		90		70		(8)		(10)		5		7		238		215		23		11

Allowance for loan and lease losses - ending		$1,242		$1,253		$1,246		$1,236		$1,224		($11)		(1%)		$18		1%		$1,242		$1,224		$18		1%

Reserve for unfunded lending commitments - beginning		$88		$86		$88		$95		$93		$2		2%		($5)		(5%)		$88		$72		$16		22%
Provision for unfunded lending commitments		3		2		(2)		(7)		2		1		50		1		50		3		23		(20)		(87)

Reserve for unfunded lending commitments - ending		$91		$88		$86		$88		$95		$3		3%		($4)		(4%)		$91		$95		($4)		(4%)

Total allowance for credit losses - ending		$1,333		$1,341		$1,332		$1,324		$1,319		($8)		(1%)		$14		1%		$1,333		$1,319		$14		1%

Memo: Total allowance for credit losses by product:
Commercial		$798		$803		$797		$773		$733		($5)		(1%)		$65		9%		$798		$733		$65		9%
Retail		535		538		535		551		586		(3)		(1)		(51)		(9)		535		586		(51)		(9)

Total allowance for credit losses		$1,333		$1,341		$1,332		$1,324		$1,319		($8)		(1%)		$14		1%		$1,333		$1,319		$14		1%

CAPITAL AND RATIOS

(in millions, except ratio data)


	AS OF																		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
											SEPTEMBER 30, 2018 CHANGE												2018 Change
	Sept 30, 2018		June 30, 2018		Mar 31, 2018		Dec 31, 2017		Sept 30, 2017		June 30, 2018				Sept 30, 2017				2018		2017		2017
											$		%		$		%						$		%
CAPITAL RATIOS AND COMPONENTS (PRELIMINARY)¹:
CET1 capital		$14,435		$14,604		$14,425		$14,309		$14,093		($169)		(1%)		$342		2%
Tier 1 capital		14,978		15,147		14,672		14,556		14,340		(169)		(1)		638		4
Total capital		17,810		18,056		17,905		17,781		17,560		(246)		(1)		250		1
Risk-weighted assets		133,249		130,621		129,066		127,692		127,203		2,628		2		6,046		5
Adjusted average assets²		150,717		148,341		146,441		145,601		144,500		2,376		2		6,217		4
CET1 capital ratio		10.8%		11.2%		11.2%		11.2%		11.1%
Tier 1 capital ratio		11.2		11.6		11.4		11.4		11.3
Total capital ratio		13.4		13.8		13.9		13.9		13.8
Tier 1 leverage ratio		9.9		10.2		10.0		10.0		9.9
TANGIBLE COMMON EQUITY (PERIOD-END):
Common stockholders’ equity		$19,733		$19,924		$19,812		$20,023		$19,862		($191)		(1%)		($129)		(1%)		$19,733		$19,862		($129)		(1%)
Less: Goodwill		6,946		6,887		6,887		6,887		6,887		59		1		59		1		6,946		6,887		59		1
Less: Other intangible assets		33		2		2		2		2		31		NM		31		NM		33		2		31		NM
Add: Deferred tax liabilities³		363		359		357		355		539		4		1		(176)		(33)		363		539		(176)		(33)

Total tangible common equity		$13,117		$13,394		$13,280		$13,489		$13,512		($277)		(2%)		($395)		(3%)		$13,117		$13,512		($395)		(3%)

TANGIBLE COMMON EQUITY (AVERAGE):
Common stockholders’ equity		$19,599		$19,732		$19,732		$19,624		$19,728		($133)		(1%)		($129)		(1%)		$19,687		$19,617		$70		—%
Less: Goodwill		6,926		6,887		6,887		6,887		6,887		39		1		39		1		6,900		6,882		18		—
Less: Other intangible assets		22		2		2		2		2		20		NM		20		NM		9		2		7		NM
Add: Deferred tax liabilities³		360		357		355		531		537		3		1		(177)		(33)		358		535		(177)		(33)

Total tangible common equity		$13,011		$13,200		$13,198		$13,266		$13,376		($189)		(1%)		($365)		(3%)		$13,136		$13,268		($132)		(1%)

INTANGIBLE ASSETS (PERIOD-END):
Goodwill		$6,946		$6,887		$6,887		$6,887		$6,887		$59		1%		$59		1%		$6,946		$6,887		$59		1%
Other intangible assets		33		2		2		2		2		31		NM		31		NM		33		2		31		NM

Total intangible assets		$6,979		$6,889		$6,889		$6,889		$6,889		$90		1%		$90		1%		$6,979		$6,889		$90		1%

¹	The December 31, 2017 capital ratios reflect the retrospective adoption of FASB ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.

Adjusted average assets include quarterly average assets, less deductions for disallowed goodwill and other intangible 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.

³	Deferred tax liabilities relate to tax-deductible goodwill, which is netted against goodwill when calculating tangible common equity.

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

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

Key Performance Metrics:

Our Management uses certain key performance metrics (KPMs) to gauge our progress against strategic and operational goals, as well as to compare our performance against peers. The KPMs are referred to in our Registration Statements on Form S-1 and our external financial reports filed with the Securities and Exchange Commission. The KPMs include:

• Return on average tangible common equity (ROTCE);

• Return on average total tangible assets (ROTA);

• Efficiency ratio;

• Operating leverage; and

• Common equity tier 1 capital ratio.

Established targets for the KPMs are based on Management-reporting results and are referred to by the Company as “Underlying” results. We believe that “Underlying” results, which exclude notable items, as applicable, provide the best representation of our underlying financial progress toward the KPMs as they exclude items that our Management does not consider indicative of our on-going financial performance. We have consistently shown these metrics on this basis to investors since our initial public offering in September of 2014. KPMs that reflect “Underlying” results are considered non-GAAP financial measures.

Non-GAAP Financial Measures:

This document contains non-GAAP financial measures denoted as “Underlying” results. “Underlying” results for any given reporting period exclude certain items that may occur in that period which Management does not consider indicative of the Company’s on-going financial performance. We believe these non-GAAP financial measures provide useful information to investors because they are used by our Management to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe our “Underlying” results in any given reporting period reflect our on-going financial performance in that period and, accordingly, are useful to consider in addition to our GAAP financial results. We further believe the presentation of “Underlying” results increases comparability of period-to-period results. The following tables present reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures.

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 such companies. We caution investors not to place undue reliance on such non-GAAP financial measures, but to consider them with the most directly comparable GAAP measures. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for our results reported under GAAP.

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (CONTINUED)

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


		QUARTERLY TRENDS																				FOR THE NINE MONTHS ENDED SEPTEMBER 30,
												3Q18 Change														2018 Change
		3Q18		2Q18		1Q18		4Q17		3Q17		2Q18					3Q17					2018		2017		2017
												$		%			$		%							$		%
Noninterest income, Underlying:
Noninterest income (GAAP)			$416		$388		$371		$404		$381		$28		7%			$35		9%			$1,175		$1,130		$45		4%
Less: Notable items			—		—		—		17		—		—		—			—		—			—		(11)		11		100

Noninterest income, Underlying (non-GAAP)			$416		$388		$371		$387		$381		$28		7%			$35		9%			$1,175		$1,141		$34		3%

Total revenue, Underlying:
Total revenue (GAAP)	A		$1,564		$1,509		$1,462		$1,484		$1,443		$55		4%			$121		8%			$4,535		$4,223		$312		7%
Less: Notable items			—		—		—		17		—		—		—			—		—			—		(11)		11		100

Total revenue, Underlying (non-GAAP)	B		$1,564		$1,509		$1,462		$1,467		$1,443		$55		4%			$121		8%			$4,535		$4,234		$301		7%

Noninterest expense, Underlying:
Noninterest expense (GAAP)	C		$910		$875		$883		$898		$858		$35		4%			$52		6%			$2,668		$2,576		$92		4%
Less: Notable items			9		—		—		40		—		9		100			9		100			9		15		(6)		(40)

Noninterest expense, Underlying (non-GAAP)	D		$901		$875		$883		$858		$858		$26		3%			$43		5%			$2,659		$2,561		$98		4%

Pre-provision profit:
Total revenue (GAAP)	A		$1,564		$1,509		$1,462		$1,484		$1,443		$55		4%			$121		8%			$4,535		$4,223		$312		7%
Less: Noninterest expense (GAAP)	C		910		875		883		898		858		35		4			52		6			2,668		2,576		92		4

Pre-provision profit (GAAP)			$654		$634		$579		$586		$585		$20		3%			$69		12%			$1,867		$1,647		$220		13%

Pre-provision profit, Underlying:
Total revenue, Underlying (non-GAAP)	B		$1,564		$1,509		$1,462		$1,467		$1,443		$55		4%			$121		8%			$4,535		$4,234		$301		7%
Less: Noninterest expense, Underlying (non-GAAP)	D		901		875		883		858		858		26		3			43		5			2,659		2,561		98		4

Pre-provision profit, Underlying (non-GAAP)			$663		$634		$579		$609		$585		$29		5%			$78		13%			$1,876		$1,673		$203		12%

Total credit-related costs, Underlying:
Provision for credit losses (GAAP)			$78		$85		$78		$83		$72		($7)		(8%	)		$6		8%			$241		$238		$3		1%
Add: Notable items			—		—		—		—		—		—		—			—		—			—		26		(26)		(100)

Total credit-related costs, Underlying (non-GAAP)			$78		$85		$78		$83		$72		($7)		(8%	)		$6		8%			$241		$264		($23)		(9%)

Income before income tax expense, Underlying:
Income before income tax expense (GAAP)	E		$576		$549		$501		$503		$513		$27		5%			$63		12%			$1,626		$1,409		$217		15%
Less: Income before income tax expense (benefit) related to notable items			(9)		—		—		(23)		—		(9)		(100)			(9)		(100)			(9)		—		(9)		(100)

Income before income tax expense, Underlying (non-GAAP)	F		$585		$549		$501		$526		$513		$36		7%			$72		14%			$1,635		$1,409		$226		16%

Income tax expense, Underlying:
Income tax expense (benefit) (GAAP)	G		$133		$124		$113		($163)		$165		$9		7%			($32)		(19%	)		$370		$423		($53)		(13%	)
Less: Income tax expense (benefit) related to notable items			(2)		—		—		(340)		—		(2)		(100)			(2)		(100)			(2)		(23)		21		91

Income tax expense, Underlying (non-GAAP)	H		$135		$124		$113		$177		$165		$11		9%			($30)		(18%	)		$372		$446		($74)		(17%	)

Net income, Underlying:
Net income (GAAP)	I		$443		$425		$388		$666		$348		$18		4%			$95		27%			$1,256		$986		$270		27%
Add: Notable items, net of income tax expense (benefit)			7		—		—		(317)		—		7		100			7		100			7		(23)		30		130

Net income, Underlying (non-GAAP)	J		$450		$425		$388		$349		$348		$25		6%			$102		29%			$1,263		$963		$300		31%

Net income available to common stockholders, Underlying:
Net income available to common stockholders (GAAP)	K		$436		$425		$381		$666		$341		$11		3%			$95		28%			$1,242		$972		$270		28%
Add: Notable items, net of income tax expense (benefit)			7		—		—		(317)		—		7		100			7		100			7		(23)		30		130

Net income available to common stockholders, Underlying (non-GAAP)	L		$443		$425		$381		$349		$341		$18		4%			$102		30%			$1,249		$949		$300		32%

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (CONTINUED)

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


		QUARTERLY TRENDS																		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
												3Q18 Change												2018 Change
		3Q18		2Q18		1Q18		4Q17		3Q17		2Q18				3Q17				2018		2017		2017
												$/bps		%		$/bps		%						$/bps		%
Operating leverage:
Total revenue (GAAP)	A		$1,564		$1,509		$1,462		$1,484		$1,443		$55		3.65%		$121		8.44%		$4,535		$4,223		$312		7.40%
Less: Noninterest expense (GAAP)	C		910		875		883		898		858		35		4.09		52		6.23		2,668		2,576		92		3.61

Operating leverage															(0.44%)				2.21%								3.79%

Operating leverage, Underlying:
Total revenue, Underlying (non-GAAP)	B		$1,564		$1,509		$1,462		$1,467		$1,443		$55		3.67%		$121		8.46%		$4,535		$4,234		$301		7.12%
Less: Noninterest expense, Underlying (non-GAAP)	D		901		875		883		858		858		26		3.08		43		5.20		2,659		2,561		98		3.88

Operating leverage, Underlying (non-GAAP)															0.59%				3.26%								3.24%

Efficiency ratio and efficiency ratio, Underlying:
Efficiency ratio	C/A		58.20%		57.95%		60.43%		60.52%		59.41%		25 bps				(121) bps				58.84%		60.99%		(215) bps
Efficiency ratio, Underlying (non-GAAP)	D/B		57.62		57.95		60.43		58.50		59.41		(33) bps				(179) bps				58.64		60.47		(183) bps
Effective income tax rate and effective income tax rate, Underlying:
Effective income tax rate	G/E		23.16%		22.58%		22.52%		(32.40%)		32.18%		58 bps				(902) bps				22.77%		30.04%		(727) bps
Effective income tax rate, Underlying (non-GAAP)	H/F		23.20		22.58		22.52		33.68		32.18		62 bps				(898) bps				22.78		31.65		(887) bps
Return on average common equity and return on average common equity, Underlying:
Average common equity (GAAP)	M		$19,599		$19,732		$19,732		$19,624		$19,728		($133)		(1%)		($129)		(1%)		$19,687		$19,617		$70		—%
Return on average common equity	K/M		8.82%		8.65%		7.83%		13.46%		6.87%		17 bps				195 bps				8.44%		6.63%		181 bps
Return on average common equity, Underlying (non-GAAP)	L/M		8.96		8.65		7.83		7.05		6.87		31 bps				209 bps				8.48		6.47		201 bps
Return on average tangible common equity and return on average tangible common equity, Underlying:
Average common equity (GAAP)	M		$19,599		$19,732		$19,732		$19,624		$19,728		($133)		(1%)		($129)		(1%)		$19,687		$19,617		$70		—%
Less: Average goodwill (GAAP)			6,926		6,887		6,887		6,887		6,887		39		1		39		1		6,900		6,882		18		—
Less: Average other intangibles (GAAP)			22		2		2		2		2		20		NM		20		NM		9		2		7		NM
Add: Average deferred tax liabilities related to goodwill (GAAP)			360		357		355		531		537		3		1		(177)		(33)		358		535		(177)		(33)

Average tangible common equity	N		$13,011		$13,200		$13,198		$13,266		$13,376		($189)		(1%)		($365)		(3%)		$13,136		$13,268		($132)		(1%)

Return on average tangible common equity	K/N		13.29%		12.93%		11.71%		19.92%		10.13%		36 bps				316 bps				12.64%		9.80%		284 bps
Return on average tangible common equity, Underlying (non-GAAP)	L/N		13.50		12.93		11.71		10.43		10.13		57 bps				337 bps				12.71		9.57		314 bps
Return on average total assets and return on average total assets, Underlying:
Average total assets (GAAP)	O		$155,624		$153,253		$151,523		$151,111		$150,012		$2,371		2%		$5,612		4%		$153,482		$149,563		$3,919		3%
Return on average total assets	I/O		1.13%		1.11%		1.04%		1.75%		0.92%		2 bps				21 bps				1.09%		0.88%		21 bps
Return on average total assets, Underlying (non-GAAP)	J/O		1.15		1.11		1.04		0.92		0.92		4 bps				23 bps				1.10		0.86		24 bps
Return on average total tangible assets and return on average total tangible assets, Underlying:
Average total assets (GAAP)	O		$155,624		$153,253		$151,523		$151,111		$150,012		$2,371		2%		$5,612		4%		$153,482		$149,563		$3,919		3%
Less: Average goodwill (GAAP)			6,926		6,887		6,887		6,887		6,887		39		1		39		1		6,900		6,882		18		—
Less: Average other intangibles (GAAP)			22		2		2		2		2		20		NM		20		NM		9		2		7		NM
Add: Average deferred tax liabilities related to goodwill (GAAP)			360		357		355		531		537		3		1		(177)		(33)		358		535		(177)		(33)

Average tangible assets	P		$149,036		$146,721		$144,989		$144,753		$143,660		$2,315		2%		$5,376		4%		$146,931		$143,214		$3,717		3%

Return on average total tangible assets	I/P		1.18%		1.16%		1.08%		1.83%		0.96%		2 bps				22 bps				1.14%		0.92%		22 bps
Return on average total tangible assets, Underlying (non-GAAP)	J/P		1.20		1.16		1.08		0.96		0.96		4 bps				24 bps				1.15		0.90		25 bps

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (CONTINUED)

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


		QUARTERLY TRENDS																			FOR THE NINE MONTHS ENDED SEPTEMBER 30,
												3Q18 Change													2018 Change
		3Q18		2Q18		1Q18		4Q17		3Q17		2Q18					3Q17				2018		2017		2017
												$/bps		%			$/bps		%						$/bps		%
Tangible book value per common share:
Common shares - at period-end (GAAP)	Q		474,120,616		484,055,194		487,551,444		490,812,912		499,505,285		(9,934,578)		(2%	)		(25,384,669)		(5%)		474,120,616		499,505,285		(25,384,669)		(5%)
Common stockholders’ equity (GAAP)			$19,733		$19,924		$19,812		$20,023		$19,862		($191)		(1)			($129)		(1)		$19,733		$19,862		($129)		(1)
Less: Goodwill (GAAP)			6,946		6,887		6,887		6,887		6,887		59		1			59		1		6,946		6,887		59		1
Less: Other intangible assets (GAAP)			33		2		2		2		2		31		NM			31		NM		33		2		31		NM
Add: Deferred tax liabilities related to goodwill (GAAP)			363		359		357		355		539		4		1			(176)		(33)		363		539		(176)		(33)

Tangible common equity	R		$13,117		$13,394		$13,280		$13,489		$13,512		($277)		(2%)			($395)		(3%)		$13,117		$13,512		($395)		(3%)

Tangible book value per common share	R/Q		$27.66		$27.67		$27.24		$27.48		$27.05		($0.01)		—%			$0.61		2%		$27.66		$27.05		$0.61		2%
Net income per average common share - basic and diluted and net income per average common share - basic and diluted, Underlying:
Average common shares outstanding - basic (GAAP)	S		475,957,526		484,744,354		487,500,618		492,149,763		500,861,076		(8,786,828)		(2%)			(24,903,550)		(5%)		482,691,884		505,529,991		(22,838,107)		(5%)
Average common shares outstanding - diluted (GAAP)	T		477,599,917		486,141,695		489,266,826		493,788,007		502,157,384		(8,541,778)		(2)			(24,557,467)		(5)		484,250,843		507,062,805		(22,811,962)		(4)
Net income per average common share - basic (GAAP)	K/S		$0.92		$0.88		$0.78		$1.35		$0.68		$0.04		5			$0.24		35		2.57		1.92		0.65		34
Net income per average common share - diluted (GAAP)	K/T		0.91		0.88		0.78		1.35		0.68		0.03		3			0.23		34		2.57		1.92		0.65		34
Net income per average common share - basic, Underlying (non-GAAP)	L/S		0.93		0.88		0.78		0.71		0.68		0.05		6			0.25		37		2.59		1.88		0.71		38
Net income per average common share - diluted, Underlying (non-GAAP)	L/T		0.93		0.88		0.78		0.71		0.68		0.05		6			0.25		37		2.58		1.87		0.71		38
Dividend payout ratio and dividend payout ratio, Underlying:
Cash dividends declared and paid per common share	U		$0.27		$0.22		$0.22		$0.18		$0.18		$0.05		23%			$0.09		50%		$0.71		$0.46		$0.25		54%
Dividend payout ratio	U/(K/S)		29%		25%		28%		13%		26%		400 bps					300 bps				28%		24%		400 bps
Dividend payout ratio, Underlying (non-GAAP)	U/(L/S)		29		25		28		25		26		400 bps					300 bps				27		24		300 bps

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (CONTINUED)

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


	QUARTERLY TRENDS																		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
											3Q18 Change												2018 Change
	3Q18		2Q18		1Q18		4Q17		3Q17		2Q18				3Q17				2018		2017		2017
											$/bps		%		$/bps		%						$/bps		%
Other income, Underlying:
Other income (GAAP)		$17		$15		$17		$40		$18		$2		13%		($1)		(6%)		$49		$44		$5		11%
Less: Notable items		—		—		—		17		—		—		—		—		—		—		(11)		11		100

Other income, Underlying (non-GAAP)		$17		$15		$17		$23		$18		$2		13%		($1)		(6%)		$49		$55		($6)		(11%)

Salaries and employee benefits, Underlying¹:
Salaries and employee benefits (GAAP)¹		$474		$453		$470		$450		$438		$21		5%		$36		8%		$1,397		$1,316		$81		6%
Less: Notable items		5		—		—		17		—		5		100		5		100		5		—		5		100

Salaries and employee benefits, Underlying (non-GAAP)¹		$469		$453		$470		$433		$438		$16		4%		$31		7%		$1,392		$1,316		$76		6%

Outside services, Underlying:
Outside services (GAAP)		$107		$106		$99		$118		$99		$1		1%		$8		8%		$312		$286		$26		9%
Less: Notable items		1		—		—		12		—		1		100		1		100		1		—		1		100

Outside services, Underlying (non-GAAP)		$106		$106		$99		$106		$99		$—		—%		$7		7%		$311		$286		$25		9%

Other operating expense, Underlying¹:
Other operating expense (GAAP)¹		$131		$127		$120		$137		$133		$4		3%		($2)		(2%)		$378		$405		($27)		(7%)
Less: Notable items		3		—		—		11		—		3		100		3		100		3		15		(12)		(80)

Other operating expense, Underlying (non-GAAP)¹		$128		$127		$120		$126		$133		$1		1%		($5)		(4%)		$375		$390		($15)		(4%)

As of January 1, 2018, we retrospectively adopted ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires the service cost component of net periodic pension and postretirement benefit cost to be reported separately in the Consolidated Statements of Operations from the other components. Prior periods have been adjusted to conform with the current period presentation.

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS

(in millions, except ratio data)


		THIRD QUARTER 2018								SECOND QUARTER 2018								FIRST QUARTER 2018
		Consumer Banking		Commercial Banking		Other		Consolidated		Consumer Banking		Commercial Banking		Other		Consolidated		Consumer Banking		Commercial Banking		Other		Consolidated
Net income available to common stockholders:
Net income (loss) (GAAP)	A		$207		$234		$2		$443		$197		$237		($9)		$425		$170		$215		$3		$388
Less: Preferred stock dividends			—		—		7		7		—		—		—		—		—		—		7		7

Net income (loss) available to common stockholders	B		$207		$234		($5)		$436		$197		$237		($9)		$425		$170		$215		($4)		$381

Return on average total tangible assets:
Average total assets (GAAP)			$62,974		$52,871		$39,779		$155,624		$61,232		$52,170		$39,851		$153,253		$61,348		$50,393		$39,782		$151,523
Less: Average goodwill (GAAP)			—		—		6,926		6,926		—		—		6,887		6,887		—		—		6,887		6,887
Average other intangibles (GAAP)			—		—		22		22		—		—		2		2		—		—		2		2
Add: Average deferred tax liabilities related to goodwill (GAAP)			—		—		360		360		—		—		357		357		—		—		355		355

Average tangible assets	C		$62,974		$52,871		$33,191		$149,036		$61,232		$52,170		$33,319		$146,721		$61,348		$50,393		$33,248		$144,989

Return on average total tangible assets	A/C		1.31%		1.75%		NM		1.18%		1.29%		1.82%		NM		1.16%		1.12%		1.73%		NM		1.08%
Efficiency ratio:
Noninterest expense (GAAP)	D		$686		$202		$22		$910		$658		$200		$17		$875		$656		$208		$19		$883
Net interest income (GAAP)			776		380		(8)		1,148		759		376		(14)		1,121		733		357		1		1,091
Noninterest income (GAAP)			258		140		18		416		228		140		20		388		222		125		24		371

Total revenue (GAAP)	E		$1,034		$520		$10		$1,564		$987		$516		$6		$1,509		$955		$482		$25		$1,462

Efficiency ratio	D/E		66.29%		38.83%		NM		58.20%		66.68%		38.80%		NM		57.95%		68.72%		43.07%		NM		60.43%

		FOURTH QUARTER 2017								THIRD QUARTER 2017
		Consumer Banking		Commercial Banking		Other		Consolidated		Consumer Banking		Commercial Banking		Other		Consolidated
Net income available to common stockholders:
Net income (GAAP)	A		$117		$206		$343		$666		$122		$201		$25		$348
Less: Preferred stock dividends			—		—		—		—		—		—		7		7

Net income available to common stockholders	B		$117		$206		$343		$666		$122		$201		$18		$341

Return on average total tangible assets:
Average total assets (GAAP)			$60,911		$50,169		$40,031		$151,111		$60,012		$49,833		$40,167		$150,012
Less: Average goodwill (GAAP)			—		—		6,887		6,887		—		—		6,887		6,887
Average other intangibles (GAAP)			—		—		2		2		—		—		2		2
Add: Average deferred tax liabilities related to goodwill (GAAP)			—		—		531		531		—		—		537		537

Average tangible assets	C		$60,911		$50,169		$33,673		$144,753		$60,012		$49,833		$33,815		$143,660

Return on average total tangible assets	A/C		0.76%		1.62%		NM		1.83%		0.81%		1.60%		NM		0.96%
Efficiency ratio:
Noninterest expense (GAAP)	D		$654		$195		$49		$898		$648		$195		$15		$858
Net interest income (GAAP)			682		367		31		1,080		674		354		34		1,062
Noninterest income (GAAP)			229		138		37		404		227		136		18		381

Total revenue (GAAP)	E		$911		$505		$68		$1,484		$901		$490		$52		$1,443

Efficiency ratio	D/E		71.90%		38.84%		NM		60.52%		71.88%		39.39%		NM		59.41%

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS (CONTINUED)

(in millions, except ratio data)


		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
		2018								2017
		Consumer Banking		Commercial Banking		Other		Consolidated		Consumer Banking		Commercial Banking		Other		Consolidated
Net income available to common stockholders:
Net income (loss) (GAAP)	A		$574		$686		($4)		$1,256		$335		$568		$83		$986
Less: Preferred stock dividends			—		—		14		14		—		—		14		14

Net income (loss) available to common stockholders	B		$574		$686		($18)		$1,242		$335		$568		$69		$972

Return on average total tangible assets:
Average total assets (GAAP)			$61,857		$51,820		$39,805		$153,482		$59,310		$49,604		$40,649		$149,563
Less: Average goodwill (GAAP)			—		—		6,900		6,900		—		—		6,882		6,882
Average other intangibles (GAAP)			—		—		9		9		—		—		2		2
Add: Average deferred tax liabilities related to goodwill (GAAP)			—		—		358		358		—		—		535		535

Average tangible assets	D		$61,857		$51,820		$33,254		$146,931		$59,310		$49,604		$34,300		$143,214

Return on average total tangible assets	A/D		1.24%		1.77%		NM		1.14%		0.76%		1.53%		NM		0.92%
Efficiency ratio:
Noninterest expense (GAAP)	E		$2,000		$610		$58		$2,668		$1,939		$577		$60		$2,576
Net interest income (GAAP)			2,268		1,113		(21)		3,360		1,969		1,044		80		3,093
Noninterest income (GAAP)			708		405		62		1,175		676		400		54		1,130

Total revenue (GAAP)	F		$2,976		$1,518		$41		$4,535		$2,645		$1,444		$134		$4,223

Efficiency ratio	E/F		67.20%		40.16%		NM		58.84%		73.28%		39.89%		NM		60.99%