EX-99.3

EX-99.3 4 d922217dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

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Financial Supplement

Second Quarter 2020


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		8

Average Annualized Yields and Rates		9

Segment Financial Highlights		10
Credit-Related Information:
Nonaccrual loans and leases		14
Loans and Leases 90 Days or More Past Due and Accruing		15
Charge-offs, Recoveries and Related Ratios		16
Summary of Changes in the Components of the Allowance for Credit Losses		18

Capital and Ratios		19

Non-GAAP Financial Measures and Reconciliations		20

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 SIX MONTHS ENDED JUNE 30,
																2Q20 Change																		2020 Change
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20						2Q19						2020			2019			2019
																$/bps			%			$/bps			%									$/bps			%
SELECTED OPERATING DATA
Total revenue	$	1,750		$	1,657		$	1,637		$	1,638		$	1,628		$	93			6	%	$	122			7	%	$	3,407		$	3,216		$	191			6	%
Noninterest expense		979			1,012			986			973			951			(33	)		(3	)		28			3			1,991			1,888			103			5

Profit before provision for credit losses		771			645			651			665			677			126			20			94			14			1,416			1,328			88			7
Provision for credit losses		464			600			110			101			97			(136	)		(23	)		367			NM			1,064			182			882			NM
NET INCOME		253			34			450			449			453			219			NM			(200	)		(44	)		287			892			(605	)		(68	)
Net income, Underlying¹		263			59			454			453			458			204			NM			(195	)		(43	)		322			901			(579	)		(64	)
Net income available to common stockholders		225			12			427			432			435			213			NM			(210	)		(48	)		237			859			(622	)		(72	)
Net income available to common stockholders, Underlying¹		235			37			431			436			440			198			NM			(205	)		(47	)		272			868			(596	)		(69	)
PER COMMON SHARE DATA
Basic earnings	$	0.53		$	0.03		$	0.98		$	0.97		$	0.95		$	0.50			NM		($	0.42	)		(44	%)	$	0.56		$	1.87		($	1.31	)		(70	%)
Diluted earnings		0.53			0.03			0.98			0.97			0.95			0.50			NM			(0.42	)		(44	)		0.55			1.86			(1.31	)		(70	)
Basic earnings, Underlying¹		0.55			0.09			0.99			0.98			0.96			0.46			NM			(0.41	)		(43	)		0.64			1.89			(1.25	)		(66	)
Diluted earnings, Underlying¹		0.55			0.09			0.99			0.98			0.96			0.46			NM			(0.41	)		(43	)		0.64			1.88			(1.24	)		(66	)
Cash dividends declared and paid per common share		0.39			0.39			0.36			0.36			0.32			—			—			0.07			22			0.78			0.64			0.14			22
Book value per common share		47.92			47.78			47.63			46.67			45.61			0.14			—			2.31			5			47.92			45.61			2.31			5
Tangible book value per common share		32.13			31.97			32.08			31.48			30.88			0.16			1			1.25			4			32.13			30.88			1.25			4
Dividend payout ratio		74	%		1,398	%		37	%		37	%		34	%		NM						NM						140	%		34	%		NM
Dividend payout ratio, Underlying¹		71			451			36			37			33			NM						NM						122			34			NM
COMMON SHARES OUTSTANDING
Average: Basic		426,613,053			427,718,421			434,684,606			445,703,987			458,154,335			(1,105,368	)		—	%		(31,541,282	)		(7	%)		427,165,737			459,426,685			(32,260,948	)		(7	%)
Diluted		427,566,920			429,388,855			436,500,829			447,134,595			459,304,224			(1,821,935	)		—			(31,737,304	)		(7	)		428,292,580			460,857,535			(32,564,955	)		(7	)
Common shares at period-end		426,824,594			426,586,533			433,121,083			443,913,525			457,903,826			238,061			—			(31,079,232	)		(7	)		426,824,594			457,903,826			(31,079,232	)		(7	)

¹	These are non-GAAP financial measures. For further information on these measures, refer to “Non-GAAP Financial Measures and Reconciliations.”

CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio and headcount data)


	QUARTERLY TRENDS																									FOR THE SIX MONTHS ENDED JUNE 30,
																2Q20 Change																2020 Change
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20					2Q19					2020			2019			2019
																$/bps			%		$/bps			%								$/bps			%
FINANCIAL RATIOS
Net interest margin		2.87	%		3.09	%		3.04	%		3.10	%		3.20	%		(22	) bps				(33	) bps				2.98	%		3.22	%		(24	) bps
Net interest margin, FTE¹		2.88			3.10			3.06			3.12			3.21			(22	) bps				(33	) bps				2.99			3.23			(24	) bps
Return on average common equity		4.44			0.24			8.30			8.35			8.54			420	bps				(410	) bps				2.35			8.58			(623	) bps
Return on average common equity, Underlying²		4.63			0.74			8.36			8.45			8.63			389	bps				(400	) bps				2.69			8.67			(598	) bps
Return on average tangible common equity		6.62			0.36			12.39			12.44			12.75			626	bps				(613	) bps				3.51			12.87			(936	) bps
Return on average tangible common equity, Underlying²		6.90			1.10			12.49			12.58			12.89			580	bps				(599	) bps				4.03			13.00			(897	) bps
Return on average total assets		0.57			0.08			1.08			1.10			1.13			49	bps				(56	) bps				0.33			1.12			(79	) bps
Return on average total assets, Underlying²		0.59			0.14			1.09			1.11			1.14			45	bps				(55	) bps				0.37			1.13			(76	) bps
Return on average total tangible assets		0.59			0.09			1.13			1.15			1.17			50	bps				(58	) bps				0.35			1.17			(82	) bps
Return on average total tangible assets, Underlying²		0.61			0.15			1.14			1.16			1.19			46	bps				(58	) bps				0.39			1.18			(79	) bps
Effective income tax rate		17.69			24.13			16.76			20.46			21.86			(644	) bps				(417	) bps				18.51			22.14			(363	) bps
Effective income tax rate, Underlying²		19.36			24.52			21.52			22.29			21.89			(516	) bps				(253	) bps				20.36			22.16			(180	) bps
Efficiency ratio		55.91			61.10			60.28			59.40			58.41			(519	) bps				(250	) bps				58.43			58.70			(27	) bps
Efficiency ratio, Underlying²		54.85			59.08			58.02			58.22			58.02			(423	) bps				(317	) bps				56.91			58.34			(143	) bps
Noninterest income as a % of total revenue		34	%		30	%		30	%		30	%		28	%		400	bps				600	bps				32	%		28	%		400	bps
CAPITAL RATIOS - PERIOD-END (PRELIMINARY)
CET1 capital ratio		9.6	%		9.4	%		10.0	%		10.3	%		10.5	%
Tier 1 capital ratio		10.9			10.5			11.1			11.1			11.3
Total capital ratio		13.1			12.5			13.0			13.0			13.4
Tier 1 leverage ratio		9.3			9.6			10.0			9.9			10.1
Tangible common equity ratio		7.9			8.0			8.7			8.9			9.1
SELECTED BALANCE SHEET DATA
Loans-to-deposits ratio (period-end balances)		87.53	%		95.54	%		95.03	%		94.52	%		94.22	%		(801	) bps				(669	) bps				87.53	%		94.22	%		(669	) bps
Loans-to-deposits ratio (average balances)		90.93			95.60			94.63			94.62			95.64			(467	) bps				(471	) bps				93.13			96.65			(352	) bps
Full-time equivalent colleagues		18,312			17,863			17,997			18,116			18,207			449			3		105			1		18,312			18,207			105			1

¹	Net interest income and net interest margin is presented on a fully taxable-equivalent (“FTE”) basis using the federal statutory tax rate of 21%. The FTE impact is predominantly attributable to commercial loans for the periods presented.

²	These are non-GAAP financial measures. For further information on these measures, refer to “Non-GAAP Financial Measures and Reconciliations.”

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in millions)


	QUARTERLY TRENDS																						FOR THE SIX MONTHS ENDED JUNE 30,
											2Q20 Change																2020 Change
	2Q20		1Q20		4Q19		3Q19		2Q19		1Q20						2Q19						2020		2019		2019
											$			%			$			%							$			%
INTEREST INCOME
Interest and fees on loans and leases	$	1,192	$	1,302	$	1,312	$	1,356	$	1,392	($	110	)		(8	%)	($	200	)		(14	%)	$	2,494	$	2,773	($	279	)		(10	%)
Interest and fees on loans held for sale		20		15		18		19		15		5			33			5			33			35		26		9			35
Interest and fees on other loans held for sale		7		9		5		2		2		(2	)		(22	)		5			250			16		6		10			167
Investment securities		130		147		159		153		164		(17	)		(12	)		(34	)		(21	)		277		330		(53	)		(16	)
Interest-bearing deposits in banks		1		5		7		8		7		(4	)		(80	)		(6	)		(86	)		6		15		(9	)		(60	)

Total interest income		1,350		1,478		1,501		1,538		1,580		(128	)		(9	)		(230	)		(15	)		2,828		3,150		(322	)		(10	)

INTEREST EXPENSE
Deposits		124		227		263		297		308		(103	)		(45	)		(184	)		(60	)		351		595		(244	)		(41	)
Short-term borrowed funds		—		1		2		2		4		(1	)		(100	)		(4	)		(100	)		1		6		(5	)		(83	)
Long-term borrowed funds		66		90		93		94		102		(24	)		(27	)		(36	)		(35	)		156		223		(67	)		(30	)

Total interest expense		190		318		358		393		414		(128	)		(40	)		(224	)		(54	)		508		824		(316	)		(38	)

Net interest income		1,160		1,160		1,143		1,145		1,166		—			—			(6	)		(1	)		2,320		2,326		(6	)		—

NONINTEREST INCOME
Service charges and fees		84		118		128		128		126		(34	)		(29	)		(42	)		(33	)		202		249		(47	)		(19	)
Mortgage banking fees		276		159		80		117		62		117			74			214			NM			435		105		330			NM
Card fees		48		56		64		67		64		(8	)		(14	)		(16	)		(25	)		104		123		(19	)		(15	)
Capital markets fees		61		43		66		39		57		18			42			4			7			104		111		(7	)		(6	)
Trust and investment services fees		45		53		52		50		53		(8	)		(15	)		(8	)		(15	)		98		100		(2	)		(2	)
Foreign exchange and interest rate products		34		24		49		35		35		10			42			(1	)		(3	)		58		71		(13	)		(18	)
Letter of credit and loan fees		31		34		35		34		33		(3	)		(9	)		(2	)		(6	)		65		66		(1	)		(2	)
Securities gains, net		3		—		4		3		4		3			100			(1	)		(25	)		3		12		(9	)		(75	)
Other income		8		10		16		20		28		(2	)		(20	)		(20	)		(71	)		18		53		(35	)		(66	)

Total noninterest income		590		497		494		493		462		93			19			128			28			1,087		890		197			22

TOTAL REVENUE		1,750		1,657		1,637		1,638		1,628		93			6			122			7			3,407		3,216		191			6
Provision for credit losses		464		600		110		101		97		(136	)		(23	)		367			NM			1,064		182		882			NM
NONINTEREST EXPENSE
Salaries and employee benefits		513		549		502		508		507		(36	)		(7	)		6			1			1,062		1,016		46			5
Equipment and software expense		142		133		133		130		126		9			7			16			13			275		251		24			10
Outside services		131		135		142		128		118		(4	)		(3	)		13			11			266		228		38			17
Occupancy		82		84		88		80		82		(2	)		(2	)		—			—			166		165		1			1
Other operating expense		111		111		121		127		118		—			—			(7	)		(6	)		222		228		(6	)		(3	)

Total noninterest expense		979		1,012		986		973		951		(33	)		(3	)		28			3			1,991		1,888		103			5

Income before income tax expense		307		45		541		564		580		262			NM			(273	)		(47	)		352		1,146		(794	)		(69	)
Income tax expense		54		11		91		115		127		43			NM			(73	)		(57	)		65		254		(189	)		(74	)

Net income	$	253	$	34	$	450	$	449	$	453	$	219			NM		($	200	)		(44	%)	$	287	$	892	($	605	)		(68	%)

Net income, Underlying¹	$	263	$	59	$	454	$	453	$	458	$	204			NM		($	195	)		(43	%)	$	322	$	901	($	579	)		(64	%)

Net income available to common stockholders	$	225	$	12	$	427	$	432	$	435	$	213			NM		($	210	)		(48	%)	$	237	$	859	($	622	)		(72	%)

Net income available to common stockholders, Underlying¹	$	235	$	37	$	431	$	436	$	440	$	198			NM		($	205	)		(47	%)	$	272	$	868	($	596	)		(69	%)

¹	These are non-GAAP financial measures. For further information on these measures, refer to “Non-GAAP Financial Measures and Reconciliations.”

CONSOLIDATED BALANCE SHEETS (unaudited)

(in millions)


PERIOD-END BALANCES	AS OF															JUNE 30, 2020 CHANGE
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sept 30, 2019			Jun 30, 2019			March 31, 2020						June 30, 2019
																$			%			$			%
ASSETS
Cash and due from banks	$	1,088		$	1,155		$	1,175		$	1,638		$	996		($	67	)		(6	%)	$	92			9	%
Interest-bearing cash and due from banks		6,358			2,903			2,211			2,204			2,039			3,455			119			4,319			212
Interest-bearing deposits in banks		475			280			297			158			186			195			70			289			155
Debt securities available for sale, at fair value		22,144			22,307			20,613			21,502			21,698			(163	)		(1	)		446			2
Debt securities held to maturity		2,856			3,071			3,202			3,319			3,447			(215	)		(7	)		(591	)		(17	)
Equity securities, at fair value		50			47			47			47			47			3			6			3			6
Equity securities, at cost		607			927			807			734			706			(320	)		(35	)		(99	)		(14	)
Loans held for sale, at fair value		3,631			2,911			1,946			1,993			1,750			720			25			1,881			107
Other loans held for sale		1,362			350			1,384			22			455			1,012			NM			907			199
Loans and leases		125,713			127,528			119,088			117,880			116,838			(1,815	)		(1	)		8,875			8
Less: Allowance for loan and lease losses		(2,448	)		(2,171	)		(1,252	)		(1,263	)		(1,227	)		(277	)		(13	)		(1,221	)		(100	)

Net loans and leases		123,265			125,357			117,836			116,617			115,611			(2,092	)		(2)			7,654			7
Derivative assets		2,069			1,968			807			1,027			833			101			5			1,236			148
Premises and equipment		751			746			761			747			740			5			1			11			1
Bank-owned life insurance		1,739			1,736			1,725			1,720			1,711			3			—			28			2
Goodwill		7,050			7,050			7,044			7,044			7,040			—			—			10			—
Due from broker		51			—			—			257			249			51			100			(198	)		(100	)
Other assets		6,378			5,911			5,878			5,333			5,241			467			8			1,137			22

TOTAL ASSETS	$	179,874		$	176,719		$	165,733		$	164,362		$	162,749		$	3,155			2%		$	17,125			11	%

LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits:
Noninterest-bearing	$	40,545		$	32,398		$	29,233		$	29,939		$	28,192		$	8,147			25	%	$	12,353			44	%
Interest-bearing		103,073			101,077			96,080			94,775			95,812			1,996			2			7,261			8

Total deposits		143,618			133,475			125,313			124,714			124,004			10,143			8			19,614			16
Short-term borrowed funds		255			1,059			274			1,077			1,441			(804	)		(76	)		(1,186	)		(82	)
Derivative liabilities		198			234			120			161			106			(36	)		(15	)		92			87
Deferred taxes, net		709			782			866			752			767			(73	)		(9	)		(58	)		(8	)
Long-term borrowed funds:
FHLB advances		6			8,007			5,008			3,007			2,258			(8,001	)		(100	)		(2,252	)		(100	)
Senior debt		7,519			6,775			7,382			8,143			7,624			744			11			(105	)		(1	)
Subordinated debt and other debt		1,677			1,655			1,657			1,656			1,656			22			1			21			1

Total long-term borrowed funds		9,202			16,437			14,047			12,806			11,538			(7,235	)		(44	)		(2,336	)		(20	)
Due to broker		155			—			—			206			257			155			100			(102	)		(100	)
Other liabilities		3,319			2,782			2,912			2,795			2,619			537			19			700			27

TOTAL LIABILITIES		157,456			154,769			143,532			142,511			140,732			2,687			2			16,724			12
STOCKHOLDERS’ EQUITY
Preferred stock:
$25.00 par value, 100,000,000 shares authorized for each of the periods presented		1,965			1,570			1,570			1,133			1,133			395			25			832			73
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		18,908			18,901			18,891			18,876			18,860			7			—			48			—
Retained earnings		6,068			6,011			6,498			6,229			5,959			57			1			109			2
Treasury stock, at cost		(4,623	)		(4,623	)		(4,353	)		(3,953	)		(3,453	)		—			—			(1,170	)		(34	)
Accumulated other comprehensive income (loss)		94			85			(411	)		(440	)		(488	)		9			11			582			NM

TOTAL STOCKHOLDERS’ EQUITY		22,418			21,950			22,201			21,851			22,017			468			2			401			2

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	179,874		$	176,719		$	165,733		$	164,362		$	162,749		$	3,155			2%		$	17,125			11	%

Memo: Total tangible common equity	$	13,716		$	13,639		$	13,893		$	13,976		$	14,141		$	77			1	%	($	425	)		(3	%)

LOANS AND DEPOSITS

(in millions)


PERIOD-END BALANCES	AS OF										JUNE 30, 2020 CHANGE
	Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Sept 30, 2019		Jun 30, 2019		Mar 31, 2020						June 30, 2019
											$			%			$			%
LOANS AND LEASES
Commercial	$	48,017	$	49,092	$	41,479	$	41,356	$	41,156	($	1,075	)		(2	%)	$	6,861			17	%
Commercial real estate		14,485		14,502		13,522		12,820		13,123		(17	)		—			1,362			10
Leases		2,428		2,438		2,537		2,557		2,684		(10	)		—			(256	)		(10	)

Total commercial loans and leases		64,930		66,032		57,538		56,733		56,963		(1,102	)		(2	)		7,967			14

Residential mortgages		19,245		18,721		19,083		19,699		19,192		524			3			53			—
Home equity		12,541		12,992		13,154		13,423		13,640		(451	)		(3	)		(1,099	)		(8	)
Automobile		12,028		12,157		12,120		12,070		12,000		(129	)		(1	)		28			—
Education		10,591		10,887		10,347		9,729		9,305		(296	)		(3	)		1,286			14
Other retail		6,378		6,739		6,846		6,226		5,738		(361	)		(5	)		640			11

Total retail loans		60,783		61,496		61,550		61,147		59,875		(713	)		(1	)		908			2

Total loans and leases	$	125,713	$	127,528	$	119,088	$	117,880	$	116,838	($	1,815	)		(1	%)	$	8,875			8	%


Loans held for sale, at fair value		3,631		2,911		1,946		1,993		1,750		720			25			1,881			107
Other loans held for sale		1,362		350		1,384		22		455		1,012			NM			907			199

Loans and leases and loans held for sale	$	130,706	$	130,789	$	122,418	$	119,895	$	119,043	($	83	)		—	%	$	11,663			10	%


DEPOSITS
Demand	$	40,545	$	32,398	$	29,233	$	29,939	$	28,192	$	8,147			25	%	$	12,353			44	%
Checking with interest		27,200		25,358		24,840		24,403		25,021		1,842			7			2,179			9
Regular savings		16,665		14,702		13,779		13,479		13,495		1,963			13			3,170			23
Money market accounts		44,965		42,972		38,725		36,826		35,329		1,993			5			9,636			27
Term deposits		14,243		18,045		18,736		20,067		21,967		(3,802	)		(21	)		(7,724	)		(35	)

Total deposits	$	143,618	$	133,475	$	125,313	$	124,714	$	124,004	$	10,143			8	%	$	19,614			16	%

AVERAGE BALANCE SHEETS

(in millions)


	QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
																2Q20 Change																		2020 Change
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20						2Q19						2020			2019			2019
																$			%			$			%									$			%
ASSETS
Interest-bearing cash and due from banks and deposits in banks	$	5,231		$	1,859		$	1,970		$	1,474		$	1,229		$	3,372			181	%	$	4,002			NM		$	3,545		$	1,362		$	2,183			160	%

Taxable investment securities		25,180			25,339			25,305			25,635			25,620			(159	)		(1	)		(440	)		(2	)		25,259			25,379			(120	)		—
Non-taxable investment securities		4			4			5			5			5			—			—			(1	)		(20	)		4			5			(1	)		(20	)

Total investment securities		25,184			25,343			25,310			25,640			25,625			(159	)		(1	)		(441	)		(2	)		25,263			25,384			(121	)		—

Investment securities and interest-bearing deposits		30,415			27,202			27,280			27,114			26,854			3,213			12			3,561			13			28,808			26,746			2,062			8

Commercial		50,443			43,152			42,012			41,476			41,755			7,291			17			8,688			21			46,797			41,659			5,138			12
Commercial real estate		14,540			13,876			13,103			12,892			13,379			664			5			1,161			9			14,208			13,325			883			7
Leases		2,426			2,482			2,546			2,615			2,745			(56	)		(2	)		(319	)		(12	)		2,454			2,809			(355	)		(13	)

Total commercial loans and leases		67,409			59,510			57,661			56,983			57,879			7,899			13			9,530			16			63,459			57,793			5,666			10

Residential mortgages		18,872			18,866			19,495			19,405			19,232			6			—			(360	)		(2	)		18,869			19,163			(294	)		(2	)
Home equity		12,736			13,042			13,265			13,501			13,754			(306	)		(2	)		(1,018	)		(7	)		12,889			13,913			(1,024	)		(7	)
Automobile		11,998			12,173			12,099			12,036			11,984			(175	)		(1	)		14			—			12,085			12,026			59			—
Education		11,183			10,610			9,888			9,459			9,235			573			5			1,948			21			10,897			9,153			1,744			19
Other retail		6,557			6,854			6,497			5,873			5,699			(297	)		(4	)		858			15			6,706			5,668			1,038			18

Total retail loans		61,346			61,545			61,244			60,274			59,904			(199	)		—			1,442			2			61,446			59,923			1,523			3

Total loans and leases		128,755			121,055			118,905			117,257			117,783			7,700			6			10,972			9			124,905			117,716			7,189			6
Loans held for sale, at fair value		2,710			1,890			2,209			1,970			1,528			820			43			1,182			77			2,300			1,283			1,017			79
Other loans held for sale		510			799			517			134			158			(289	)		(36	)		352			223			655			175			480			NM

Total interest-earning assets		162,390			150,946			148,911			146,475			146,323			11,444			8			16,067			11			156,668			145,920			10,748			7
Allowance for loan and lease losses		(2,172	)		(1,708	)		(1,260	)		(1,226	)		(1,247	)		(464	)		(27	)		(925	)		(74	)		(1,940	)		(1,245	)		(695	)		(56	)
Goodwill		7,050			7,046			7,044			7,044			7,040			4			—			10			—			7,048			7,029			19			—
Other noninterest-earning assets		12,525			10,893			9,951			9,817			9,373			1,632			15			3,152			34			11,709			9,251			2,458			27

TOTAL ASSETS	$	179,793		$	167,177		$	164,646		$	162,110		$	161,489		$	12,616			8	%	$	18,304			11	%	$	173,485		$	160,955		$	12,530			8	%

LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Checking with interest	$	26,312		$	24,612		$	23,545		$	23,422		$	23,919		$	1,700			7	%	$	2,393			10	%	$	25,462		$	23,456		$	2,006			9	%
Money market accounts		45,187			39,839			38,809			37,161			35,228			5,348			13			9,959			28			42,513			35,218			7,295			21
Regular savings		15,883			14,201			13,582			13,442			13,324			1,682			12			2,559			19			15,042			12,977			2,065			16
Term deposits		16,470			18,616			19,788			20,951			22,292			(2,146	)		(12	)		(5,822	)		(26	)		17,543			21,713			(4,170	)		(19	)

Total interest-bearing deposits		103,852			97,268			95,724			94,976			94,763			6,584			7			9,089			10			100,560			93,364			7,196			8
Short-term borrowed funds		222			644			504			600			863			(422	)		(66	)		(641	)		(74	)		433			781			(348	)		(45	)
FHLB advances		2,595			5,138			3,259			2,478			3,155			(2,543	)		(49	)		(560	)		(18	)		3,866			4,418			(552	)		(12	)
Senior debt		7,499			7,263			7,914			8,000			7,573			236			3			(74	)		(1	)		7,381			7,482			(101	)		(1	)
Subordinated debt and other debt		1,661			1,656			1,657			1,656			1,658			5			—			3			—			1,659			1,655			4			—

Total long-term borrowed funds		11,755			14,057			12,830			12,134			12,386			(2,302	)		(16	)		(631	)		(5	)		12,906			13,555			(649	)		(5	)

Total borrowed funds		11,977			14,701			13,334			12,734			13,249			(2,724	)		(19	)		(1,272	)		(10	)		13,339			14,336			(997	)		(7	)

Total interest-bearing liabilities		115,829			111,969			109,058			107,710			108,012			3,860			3			7,817			7			113,899			107,700			6,199			6
Total demand deposits		37,745			29,362			29,928			28,945			28,389			8,383			29			9,356			33			33,553			28,426			5,127			18
Other liabilities		4,086			4,053			3,819			3,789			3,536			33			1			550			16			4,070			3,560			510			14

TOTAL LIABILITIES		157,660			145,384			142,805			140,444			139,937			12,276			8			17,723			13			151,522			139,686			11,836			8

STOCKHOLDERS’ EQUITY		22,133			21,793			21,841			21,666			21,552			340			2			581			3			21,963			21,269			694			3

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	179,793		$	167,177		$	164,646		$	162,110		$	161,489		$	12,616			8	%	$	18,304			11	%	$	173,485		$	160,955		$	12,530			8	%

Memo: Total loans and leases, including loans held for sale	$	131,975		$	123,744		$	121,631		$	119,361		$	119,469		$	8,231			7	%	$	12,506			10	%	$	127,860		$	119,174		$	8,686			7	%
Total deposits (interest-bearing and demand)	$	141,597		$	126,630		$	125,652		$	123,921		$	123,152		$	14,967			12	%	$	18,445			15	%	$	134,113		$	121,790		$	12,323			10	%
Total average tangible common equity	$	13,706		$	13,484		$	13,660		$	13,788		$	13,670		$	222			2	%	$	36			—	%	$	13,595		$	13,453		$	142			1	%

AVERAGE ANNUALIZED YIELDS AND RATES

(in millions, except rates)


	QUARTERLY TRENDS																									FOR THE SIX MONTHS ENDED JUNE 30,
	2Q20					1Q20					4Q19					3Q19					2Q19					2020					2019
	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 cash and due from banks and deposits in banks		0.09	%	$	1		1.12	%	$	5		1.49	%	$	7		2.09	%	$	8		2.16	%	$	7		0.36	%	$	6		2.18	%	$	15

Taxable investment securities		2.15			130		2.32			147		2.47			159		2.38			153		2.56			164		2.24			277		2.60			330
Non-taxable investment securities		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—

Total investment securities		2.15			130		2.32			147		2.47			159		2.38			153		2.56			164		2.24			277		2.60			330

Investment securities and interest-bearing deposits					131					152					166					161					171					283					345

Commercial		3.23			412		3.82			417		3.95			424		4.17			442		4.45			471		3.50			829		4.44			931
Commercial real estate		2.87			106		3.96			139		4.26			142		4.70			155		4.91			166		3.40			245		4.94			331
Leases		2.75			16		2.83			18		2.77			18		2.85			19		2.89			19		2.79			34		2.87			40

Total commercial loans and leases		3.14			534		3.81			574		3.97			584		4.23			616		4.48			656		3.45			1,108		4.48			1,302

Residential mortgages		3.19			150		3.47			164		3.40			165		3.53			171		3.65			176		3.33			314		3.66			351
Home equity		3.50			111		4.69			152		4.73			159		5.24			178		5.28			180		4.10			263		5.27			363
Automobile		4.33			129		4.34			131		4.32			132		4.25			129		4.19			125		4.33			260		4.12			245
Education		5.21			145		5.64			149		5.76			143		5.89			141		5.97			137		5.42			294		5.98			271
Other retail		7.52			123		7.77			132		7.83			129		8.21			121		8.24			118		7.65			255		8.55			241

Total retail loans		4.31			658		4.75			728		4.72			728		4.88			740		4.92			736		4.53			1,386		4.94			1,471

Total loans and leases		3.69			1,192		4.29			1,302		4.36			1,312		4.56			1,356		4.71			1,392		3.98			2,494		4.72			2,773
Loans held for sale, at fair value		2.85			20		3.28			15		3.38			18		3.71			19		3.93			15		3.03			35		4.09			26
Other loans held for sale		4.66			7		4.31			9		3.89			5		6.42			2		5.67			2		4.45			16		6.41			6

Total interest-earning assets		3.33			1,350		3.91			1,478		3.98			1,501		4.15			1,538		4.30			1,580		3.61			2,828		4.32			3,150
INTEREST-BEARING LIABILITIES
Checking with interest		0.17			11		0.60			37		0.71			42		0.88			52		0.96			57		0.38			48		0.94			109
Money market accounts		0.35			39		0.94			93		1.12			110		1.24			116		1.30			114		0.63			132		1.28			224
Regular savings		0.39			15		0.51			18		0.52			17		0.59			20		0.62			21		0.44			33		0.59			38
Term deposits		1.44			59		1.70			79		1.88			94		2.05			109		2.09			116		1.58			138		2.08			224

Total interest-bearing deposits		0.48			124		0.94			227		1.09			263		1.24			297		1.30			308		0.70			351		1.28			595
Short-term borrowed funds		0.29			—		0.76			1		1.07			2		1.43			2		1.81			4		0.64			1		1.61			6
FHLB advances		0.86			6		1.87			24		1.98			16		1.92			12		2.63			21		1.53			30		2.67			59
Senior debt		2.25			42		2.69			49		3.02			60		3.21			65		3.41			64		2.46			91		3.47			130
Subordinated debt and other debt		4.22			18		4.13			17		4.20			17		4.13			17		4.08			17		4.17			35		4.07			34

Total long-term borrowed funds		2.22			66		2.56			90		2.91			93		3.07			94		3.30			102		2.40			156		3.28			223

Total borrowed funds		2.18			66		2.48			91		2.84			95		3.00			96		3.20			106		2.35			157		3.19			229

Total interest-bearing liabilities		0.66			190		1.14			318		1.30			358		1.45			393		1.54			414		0.90			508		1.54			824
INTEREST RATE SPREAD		2.67					2.77					2.68					2.70					2.77					2.71					2.78

NET INTEREST MARGIN AND NET INTEREST INCOME		2.87	%	$	1,160		3.09	%	$	1,160		3.04	%	$	1,143		3.10	%	$	1,145		3.20	%	$	1,166		2.98	%	$	2,320		3.22	%	$	2,326

NET INTEREST MARGIN AND NET INTEREST INCOME, FTE¹		2.88	%	$	1,163		3.10	%	$	1,164		3.06	%	$	1,147		3.12	%	$	1,150		3.21	%	$	1,172		2.99	%	$	2,327		3.23	%	$	2,338
Memo: Total deposit costs		0.35	%	$	124		0.72	%	$	227		0.83	%	$	263		0.95	%	$	297		1.00	%	$	308		0.53	%	$	351		0.98	%	$	595

¹	Net interest income and net interest margin is presented on a fully taxable-equivalent (“FTE”) basis using the federal statutory tax rate of 21%. The FTE impact is predominantly attributable to commercial loans for the periods presented.

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING

(in millions, except ratio data)


	QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
CONSUMER BANKING																2Q20 Change																		2020 Change
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20						2Q19						2020			2019			2019
																$/bps			%			$/bps			%									$/bps			%
Net interest income	$	814		$	793		$	796		$	799		$	799		$	21			3	%	$	15			2	%	$	1,607		$	1,587		$	20			1	%
Noninterest income		428			357			296			336			277			71			20			151			55			785			524			261			50

Total revenue		1,242			1,150			1,092			1,135			1,076			92			8			166			15			2,392			2,111			281			13
Noninterest expense		735			738			718			718			715			(3	)		—			20			3			1,473			1,415			58			4

Profit before provision for credit losses		507			412			374			417			361			95			23			146			40			919			696			223			32
Provision for credit losses		80			97			97			83			78			(17	)		(18	)		2			3			177			145			32			22

Income before income tax expense		427			315			277			334			283			112			36			144			51			742			551			191			35
Income tax expense		107			79			68			83			70			28			35			37			53			186			136			50			37

Net income	$	320		$	236		$	209		$	251		$	213		$	84			36	%	$	107			50	%	$	556		$	415		$	141			34	%

AVERAGE BALANCES
Total assets	$	71,634		$	68,415		$	68,069		$	66,365		$	65,485		$	3,219			5	%	$	6,149			9	%	$	70,024		$	65,247		$	4,777			7	%
Total loans and leases¹		68,205			65,343			65,157			63,553			62,678			2,862			4			5,527			9			66,774			62,422			4,352			7
Deposits		91,648			85,228			85,477			85,595			85,660			6,420			8			5,988			7			88,438			84,123			4,315			5
Interest-earning assets		68,256			65,393			65,208			63,605			62,731			2,863			4			5,525			9			66,825			62,475			4,350			7
KEY METRICS
Net interest margin		4.80	%		4.88	%		4.85	%		4.99	%		5.11	%		(8	) bps					(31	) bps					4.84	%		5.12	%		(28	) bps
Efficiency ratio		59.19			64.16			65.74			63.28			66.43			(497	) bps					(724	) bps					61.58			67.01			(543	) bps
Loans-to-deposits ratio (period-end balances)		69.17			72.94			74.15			73.61			71.13			(377	) bps					(196	) bps					69.17			71.13			(196	) bps
Loans-to-deposits ratio (average balances)		71.59			74.07			73.37			72.11			71.57			(248	) bps					2	bps					72.79			72.89			(10	) bps
Return on average total tangible assets		1.80			1.39			1.22			1.50			1.31			41	bps					49	bps					1.60			1.29			31	bps

¹	Includes loans held for sale.

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
																2Q20 Change																		2020 Change
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20						2Q19						2020			2019			2019
																$/bps			%			$/bps			%									$/bps			%
MORTGAGE BANKING FEES
Production revenue	$	271		$	136		$	61		$	80		$	49		$	135			99	%	$	222			NM		$	407		$	80		$	327			NM
Mortgage servicing revenue		9			17			16			12			9			(8	)		(47	)		—			—			26			23			3			13
MSR valuation changes, net of hedge impact		(4	)		6			4			25			4			(10	)		NM			(8	)		NM			2			2			—			—

Total mortgage banking fees	$	276		$	159		$	81		$	117		$	62		$	117			74	%	$	214			NM		$	435		$	105		$	330			NM

Gain on sale of secondary originations		3.09	%		2.36	%		0.98	%		1.40	%		1.13	%		73	bps					196	bps					2.80	%		1.18	%		162	bps

RESIDENTIAL REAL ESTATE ORIGINATIONS
Retail	$	3,882		$	2,523		$	3,196		$	2,771		$	2,115		$	1,359			54	%	$	1,767			84	%	$	6,405		$	3,428		$	2,977			87	%
Third Party		7,388			4,813			5,750			5,080			3,921			2,575			54			3,467			88			12,201			6,181			6,020			97

Total	$	11,270		$	7,336		$	8,946		$	7,851		$	6,036		$	3,934			54	%	$	5,234			87	%	$	18,606		$	9,609		$	8,997			94	%

Originated for sale		81	%		83	%		80	%		80	%		81	%		(200	) bps					— bps						82	%		81	%		100	bps
Originated for investment		19			17			20			20			19			200	bps					— bps						18			19			(100	) bps

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

MORTGAGE SERVICING INFORMATION (UPB)
Loans serviced for others	$	79,942		$	79,157		$	77,526		$	74,610		$	72,518		$	785			1	%	$	7,424			10	%	$	79,942		$	72,518		$	7,424			10	%
Owned loans serviced		21,642			21,057			20,831			19,969			19,258			585			3			2,384			12			21,642			19,258			2,384			12

Total	$	101,584		$	100,214		$	98,357		$	94,579		$	91,776		$	1,370			1	%	$	9,808			11	%	$	101,584		$	91,776		$	9,808			11	%

MSR CARRYING VALUE¹
MSR at fair value	$	568		$	577		$	642		$	510		$	531		($	9	)		(2	%)	$	37			7	%	$	568		$	531		$	37			7	%
MSR at lower of cost or market		—			—			182			177			189			—			—			(189	)		(100	)		—			189			(189	)		(100	)

Total	$	568		$	577		$	824		$	687		$	720		($	9	)		(2	%)	($	152	)		(21	%)	$	568		$	720		($	152	)		(21	%)

¹	Beginning in the first quarter of 2020, mortgage servicing rights previously accounted for at lower of cost or market are now accounted for at fair value.

SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING

(in millions, except ratio data)


	QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
COMMERCIAL BANKING																2Q20 Change																		2020 Change
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20						2Q19						2020			2019			2019
																$/bps			%			$/bps			%									$/bps			%
Net interest income	$	419		$	365		$	363		$	360		$	371		$	54			15	%	$	48			13	%	$	784		$	743		$	41			6	%
Noninterest income		144			125			175			133			149			19			15			(5	)		(3	)		269			299			(30	)		(10	)

Total revenue		563			490			538			493			520			73			15			43			8			1,053			1,042			11			1
Noninterest expense		213			221			219			213			217			(8	)		(4	)		(4	)		(2	)		434			426			8			2

Profit before provision for credit losses		350			269			319			280			303			81			30			47			16			619			616			3			—
Provision for credit losses		70			43			24			27			25			27			63			45			180			113			46			67			146

Income before income tax expense		280			226			295			253			278			54			24			2			1			506			570			(64	)		(11	)
Income tax expense		59			47			64			57			62			12			26			(3	)		(5	)		106			127			(21	)		(17	)

Net income	$	221		$	179		$	231		$	196		$	216		$	42			23	%	$	5			2	%	$	400		$	443		($	43	)		(10	%)

AVERAGE BALANCES
Total assets	$	65,280		$	59,005		$	56,407		$	55,614		$	56,135		$	6,275			11	%	$	9,145			16	%	$	62,142		$	55,884		$	6,258			11	%
Total loans and leases¹		62,011			56,555			54,523			53,814			54,653			5,456			10			7,358			13			59,283			54,545			4,738			9
Deposits		41,750			33,545			32,715			31,491			30,273			8,205			24			11,477			38			37,647			30,050			7,597			25
Interest-earning assets		62,422			57,016			54,905			54,087			54,950			5,406			9			7,472			14			59,719			54,838			4,881			9
KEY METRICS
Net interest margin		2.70	%		2.57	%		2.62	%		2.64	%		2.71	%		13	bps					(1	) bps					2.64	%		2.73	%		(9	) bps
Efficiency ratio		37.93			45.06			40.60			43.35			41.58			(713	) bps					(365	) bps					41.25			40.84			41	bps
Loans-to-deposits ratio (period-end balances)		140.79			164.10			165.24			163.62			173.48			(2,331	) bps					(3,269	) bps					140.79			173.48			(3,269	) bps
Loans-to-deposits ratio (average balances)		147.03			167.18			165.80			170.01			179.49			(2,015	) bps					(3,246	) bps					156.00			180.35			(2,435	) bps
Return on average total tangible assets		1.36			1.22			1.63			1.40			1.54			14	bps					(18	) bps					1.29			1.60			(31	) bps

¹	Includes loans held for sale.

SEGMENT FINANCIAL HIGHLIGHTS - OTHER

(in millions)


	QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
OTHER¹																2Q20 Change																		2020 Change
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20						2Q19						2020			2019			2019
																$			%			$			%									$			%
Net interest income	($	73	)	$	2		($	16	)	($	14	)	($	4	)	($	75	)		NM		($	69	)		NM		($	71	)	($	4	)	($	67	)		NM
Noninterest income		18			15			23			24			36			3			20			(18	)		(50	)		33			67			(34	)		(51	)

Total revenue		(55	)		17			7			10			32			(72	)		NM			(87	)		NM			(38	)		63			(101	)		NM
Noninterest expense		31			53			49			42			19			(22	)		(42	)		12			63			84			47			37			79

(Loss) profit before provision for credit losses		(86	)		(36	)		(42	)		(32	)		13			(50	)		(139	)		(99	)		NM			(122	)		16			(138	)		NM
Provision for credit losses		314			460			(11	)		(9	)		(6	)		(146	)		(32	)		320			NM			774			(9	)		783			NM

(Loss) income before income tax benefit		(400	)		(496	)		(31	)		(23	)		19			96			19			(419	)		NM			(896	)		25			(921	)		NM
Income tax benefit		(112	)		(115	)		(41	)		(25	)		(5	)		3			3			(107	)		NM			(227	)		(9	)		(218	)		NM

Net (loss) income	($	288	)	($	381	)	$	10		$	2		$	24		$	93			24	%	($	312	)		NM		($	669	)	$	34		($	703	)		NM

AVERAGE BALANCES
Total assets	$	42,879		$	39,757		$	40,170		$	40,131		$	39,869		$	3,122			8	%	$	3,010			8	%	$	41,319		$	39,824		$	1,495			4	%
Total loans and leases²		1,759			1,846			1,951			1,994			2,138			(87	)		(5	)		(379	)		(18	)		1,803			2,207			(404	)		(18	)
Deposits		8,199			7,857			7,460			6,835			7,219			342			4			980			14			8,028			7,617			411			5
Interest-earning assets		31,712			28,537			28,798			28,783			28,642			3,175			11			3,070			11			30,124			28,607			1,517			5

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, expenses and income tax expense, not attributed to our Consumer Banking or Commercial Banking segments.

²	Includes loans held for sale.

CREDIT-RELATED INFORMATION

(in millions, except ratio data)


	AS OF															JUNE 30, 2020 CHANGE
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sept 30, 2019			Jun 30, 2019			Mar 31, 2020						June 30, 2019
																$/bps			%			$/bps			%
NONACCRUAL LOANS AND LEASES¹
Commercial	$	366		$	305		$	240		$	228		$	198		$	61			20	%	$	168			85	%
Commercial real estate		61			8			2			49			4			53			NM			57			NM
Leases		79			1			3			4			17			78			NM			62			NM

Total commercial loans and leases		506			314			245			281			219			192			61			287			131
Residential mortgages²		112			101			93			91			98			11			11			14			14
Home equity		254			242			246			247			278			12			5			(24	)		(9	)
Automobile		67			69			67			69			62			(2	)		(3	)		5			8
Education		18			21			18			17			40			(3	)		(14	)		(22	)		(55	)
Other retail		33			33			34			32			30			—			—			3			10

Total retail loans		484			466			458			456			508			18			4			(24	)		(5	)

Nonaccrual loans and leases		990			780			703			737			727			210			27			263			36

Repossessed assets		33			44			45			40			32			(11	)		(25	)		1			3

Nonaccrual loans and leases and repossessed assets	$	1,023		$	824		$	748		$	777		$	759		$	199			24	%	$	264			35	%

NONACCRUAL LOANS AND LEASES BY PRODUCT³
Commercial	$	506		$	314		$	245		$	281		$	219		$	192			61	%	$	287			131	%
Retail		517			510			503			496			540			7			1			(23	)		(4	)

Total nonaccrual loans and leases	$	1,023		$	824		$	748		$	777		$	759		$	199			24	%	$	264			35	%


ASSET QUALITY RATIOS
Allowance for credit losses to loans and leases		2.01	%		1.73	%		1.09	%		1.11	%		1.13	%		28 bps						88 bps
Allowance for credit losses to nonaccrual loans and leases		255.39			283.48			184.31			177.42			181.54			NM						NM
Nonaccrual loans and leases to loans and leases		0.79			0.61			0.59			0.63			0.62			18						17

Beginning in the first quarter of 2020 and upon the adoption of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, nonperforming loans and leases are now referred to as nonaccrual loans and leases and other nonperforming assets are referred to as repossessed assets.

Beginning in the fourth quarter of 2019, nonaccrual balances exclude both fully and partially guaranteed residential mortgage loans sold to Ginnie Mae for which the Company has the right, but not the obligation, to repurchase. Prior periods have been adjusted to exclude partially guaranteed amounts to conform with the current period presentation.

³	Nonaccrual loans and leases by product includes repossessed assets.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


	AS OF										JUNE 30, 2020 CHANGE
	Jun 30, 2020		Mar 31, 2020		Dec 31, 2019		Sept 30, 2019		Jun 30, 2019		Mar 31, 2020						June 30, 2019
											$/bps			%			$/bps			%
LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING
Commercial	$	33	$	—	$	2	$	1	$	4	$	33			100	%	$	29			NM
Commercial real estate		—		—		—		—		—		—			—			—			—
Leases		—		—		—		1		1		—			—			(1	)		(100	)

Total commercial loans and leases		33		—		2		2		5		33			100			28			NM
Residential mortgages		13		14		13		15		14		(1	)		(7	)		(1	)		(7	)
Home equity		—		—		—		—		—		—			—			—			—
Automobile		—		—		—		—		—		—			—			—			—
Education		2		2		2		3		3		—			—			(1	)		(33	)
Other retail		7		11		8		10		9		(4	)		(36	)		(2	)		(22	)

Total retail loans		22		27		23		28		26		(5	)		(19	)		(4	)		(15	)

Total loans and leases		55		27		25		30		31		28			104			24			77

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS																									FOR THE SIX MONTHS ENDED JUNE 30,
														2Q20 Change																		2020 Change
	2Q20			1Q20			4Q19		3Q19			2Q19		1Q20						2Q19						2020			2019			2019
														$			%			$			%									$			%
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS
GROSS CHARGE-OFFS
Commercial	$	68		$	47		$	24	$	20		$	40	$	21			45	%	$	28			70	%	$	115		$	43		$	72			167	%
Commercial real estate		—			—			9		10			—		—			—			—			—			—			20			(20	)		(100	)
Leases		6			—			1		5			5		6			100			1			20			6			8			(2	)		(25	)

Total commercial loans and leases		74			47			34		35			45		27			57			29			64			121			71			50			70
Residential mortgages		2			1			2		2			2		1			100			—			—			3			4			(1	)		(25	)
Home equity		6			8			10		11			11		(2	)		(25	)		(5	)		(45	)		14			18			(4	)		(22	)
Automobile		31			39			38		37			30		(8	)		(21	)		1			3			70			68			2			3
Education		14			18			20		18			18		(4	)		(22	)		(4	)		(22	)		32			34			(2	)		(6	)
Other retail		53			61			58		56			50		(8	)		(13	)		3			6			114			99			15			15

Total retail loans		106			127			128		124			111		(21	)		(17	)		(5	)		(5	)		233			223			10			4

Total gross charge-offs	$	180		$	174		$	162	$	159		$	156	$	6			3	%	$	24			15	%	$	354		$	294		$	60			20	%

GROSS RECOVERIES
Commercial	$	3		$	3		$	7	$	3		$	12	$	—			—	%	($	9	)		(75	%)	$	6		$	14		($	8	)		(57	%)
Commercial real estate		—			—			—		—			—		—			—			—			—			—			—			—			—
Leases		—			—			—		—			—		—			—			—			—			—			—			—			—

Total commercial loans and leases		3			3			7		3			12		—			—			(9	)		(75	)		6			14			(8	)		(57	)
Residential mortgages		1			1			1		1			2		—			—			(1	)		(50	)		2			7			(5	)		(71	)
Home equity		8			11			10		12			10		(3	)		(27	)		(2	)		(20	)		19			27			(8	)		(30	)
Automobile		11			12			11		15			16		(1	)		(8	)		(5	)		(31	)		23			31			(8	)		(26	)
Education		4			4			4		4			4		—			—			—			—			8			8			—			—
Other retail		6			6			7		11			6		—			—			—			—			12			12			—			—

Total retail loans		30			34			33		43			38		(4	)		(12	)		(8	)		(21	)		64			85			(21	)		(25	)

Total gross recoveries	$	33		$	37		$	40	$	46		$	50	($	4	)		(11	%)	($	17	)		(34	%)	$	70		$	99		($	29	)		(29	%)

NET CHARGE-OFFS (RECOVERIES)
Commercial	$	65		$	44		$	17	$	17		$	28	$	21			48	%	$	37			132	%	$	109		$	29		$	80			NM
Commercial real estate		—			—			9		10			—		—			—			—			—			—			20			(20	)		(100	)
Leases		6			—			1		5			5		6			100			1			20			6			8			(2	)		(25	)

Total commercial loans and leases		71			44			27		32			33		27			61			38			115			115			57			58			102
Residential mortgages		1			—			1		1			—		1			100			1			100			1			(3	)		4			NM
Home equity		(2	)		(3	)		—		(1	)		1		1			33			(3	)		NM			(5	)		(9	)		4			44
Automobile		20			27			27		22			14		(7	)		(26	)		6			43			47			37			10			27
Education		10			14			16		14			14		(4	)		(29	)		(4	)		(29	)		24			26			(2	)		(8	)
Other retail		47			55			51		45			44		(8	)		(15	)		3			7			102			87			15			17

Total retail loans		76			93			95		81			73		(17	)		(18	)		3			4			169			138			31			22

Total net charge-offs	$	147		$	137		$	122	$	113		$	106	$	10			7	%	$	41			39	%	$	284		$	195		$	89			46	%

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except rates)


	QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
																2Q20 Change																2020 Change
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20						2Q19						2020		2019		2019
																$/bps			%			$/bps			%							$/bps			%
ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES
Commercial		0.52	%		0.41	%		0.16	%		0.16	%		0.27	%		11 bps						25 bps						0.47%		0.14%		33 bps
Commercial real estate		—			—			0.26			0.31			—			— bps						— bps						—		0.30		(30) bps
Leases		1.03			0.07			0.19			0.80			0.72			96 bps						31 bps						0.55		0.56		(1) bps
Total commercial loans and leases		0.42			0.30			0.19			0.22			0.23			12 bps						19 bps						0.37		0.20		17 bps
Residential mortgages		0.02			0.01			0.02			0.01			0.01			1 bps						1 bps						0.01		(0.03)		4 bps
Home equity		(0.05	)		(0.10	)		0.02			(0.04	)		0.01			5 bps						(6) bps						(0.08)		(0.13)		5 bps
Automobile		0.68			0.88			0.85			0.74			0.49			(20) bps						19 bps						0.78		0.62		16 bps
Education		0.34			0.55			0.65			0.58			0.62			(21) bps						(28) bps						0.44		0.57		(13) bps
Other retail		2.93			3.21			3.09			3.08			3.11			(28) bps						(18) bps						3.07		3.09		(2) bps
Total retail loans		0.50			0.61			0.61			0.53			0.49			(11) bps						1 bps						0.56		0.47		9 bps
Total loans and leases		0.46	%		0.46	%		0.41	%		0.38	%		0.36	%		— bps						10 bps						0.46%		0.33%		13 bps
Memo: Average loans
Commercial	$	50,443		$	43,152		$	42,012		$	41,476		$	41,755		$	7,291			17	%	$	8,688			21	%	$	46,797	$	41,659	$	5,138			12	%
Commercial real estate		14,540			13,876			13,103			12,892			13,379			664			5			1,161			9			14,208		13,325		883			7
Leases		2,426			2,482			2,546			2,615			2,745			(56	)		(2	)		(319	)		(12	)		2,454		2,809		(355	)		(13	)

Total commercial loans and leases		67,409			59,510			57,661			56,983			57,879			7,899			13			9,530			16			63,459		57,793		5,666			10
Residential mortgages		18,872			18,866			19,495			19,405			19,232			6			—			(360	)		(2	)		18,869		19,163		(294	)		(2	)
Home equity		12,736			13,042			13,265			13,501			13,754			(306	)		(2	)		(1,018	)		(7	)		12,889		13,913		(1,024	)		(7	)
Automobile		11,998			12,173			12,099			12,036			11,984			(175	)		(1	)		14			—			12,085		12,026		59			—
Education		11,183			10,610			9,888			9,459			9,235			573			5			1,948			21			10,897		9,153		1,744			19
Other retail		6,557			6,854			6,497			5,873			5,699			(297	)		(4	)		858			15			6,706		5,668		1,038			18

Total retail loans		61,346			61,545			61,244			60,274			59,904			(199	)		—			1,442			2			61,446		59,923		1,523			3

Total loans and leases	$	128,755		$	121,055		$	118,905		$	117,257		$	117,783		$	7,700			6	%	$	10,972			9	%	$	124,905	$	117,716	$	7,189			6	%

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS																										FOR THE SIX MONTHS ENDED JUNE 30,
															2Q20 Change																	2020 Change
	2Q20			1Q20			4Q19			3Q19			2Q19		1Q20						2Q19						2020			2019		2019
															$			%			$			%								$			%
SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES
Allowance for loan and lease losses - beginning	$	2,171		$	1,252		$	1,263		$	1,227		$	1,245	$	919			73	%	$	926			74	%	$	1,252		$	1,242	$	10			1	%
Cumulative effect of change in accounting principle:
Commercial		—			(176	)		—			—			—		176			100			—			—			(176	)		—		(176	)		(100	)
Retail		—			629			—			—			—		(629	)		(100	)		—			—			629			—		629			100

Total cumulative effect of change in accounting principle		—			453			—			—			—		(453	)		(100	)		—			—			453			—		453			100

Allowance for loan and lease losses - beginning, adjusted		2,171			1,705			1,263			1,227			1,245		466			27			926			74			1,705			1,242		463			37
Charge-offs:
Commercial		74			47			34			35			45		27			57			29			64			121			71		50			70
Retail		106			127			128			124			111		(21	)		(17	)		(5	)		(5	)		233			223		10			4

Total charge-offs		180			174			162			159			156		6			3			24			15			354			294		60			20

Recoveries:
Commercial		3			3			7			3			12		—			—			(9	)		(75	)		6			14		(8	)		(57	)
Retail		30			34			33			43			38		(4	)		(12	)		(8	)		(21	)		64			85		(21	)		(25	)

Total recoveries		33			37			40			46			50		(4	)		(11	)		(17	)		(34	)		70			99		(29	)		(29	)

Net charge-offs		147			137			122			113			106		10			7			41			39			284			195		89			46
Provision for loan and lease losses:
Commercial		554			298			(11	)		64			22		256			86			532			NM			852			47		805			NM
Retail		(130	)		305			122			85			66		(435	)		NM			(196	)		NM			175			133		42			32

Total provision for loan and lease losses		424			603			111			149			88		(179	)		(30	)		336			NM			1,027			180		847			NM

Allowance for loan and lease losses - ending	$	2,448		$	2,171		$	1,252		$	1,263		$	1,227	$	277			13	%	$	1,221			100	%	$	2,448		$	1,227	$	1,221			100	%

Reserve for unfunded lending commitments - beginning	$	39		$	44		$	45		$	93		$	84	($	5	)		(11	%)	($	45	)		(54	%)	$	44		$	91	($	47	)		(52	%)
Cumulative effect of change in accounting principle		—			(2	)		—			—			—		2			100			—			—			(2	)		—		(2	)		—
Provision for unfunded lending commitments		40			(3	)		(1	)		(48	)		9		43			NM			31			NM			37			2		35			NM

Reserve for unfunded lending commitments - ending	$	79		$	39		$	44		$	45		$	93	$	40			103	%	($	14	)		(15	%)	$	79		$	93	($	14	)		(15	%)

Total allowance for credit losses - ending	$	2,527		$	2,210		$	1,296		$	1,308		$	1,320	$	317			14	%	$	1,207			91	%	$	2,527		$	1,320	$	1,207			91	%

Memo: Total allowance for credit losses by product
Commercial	$	1,304		$	790		$	718		$	757		$	773	$	514			65	%	$	531			69	%	$	1,304		$	773	$	531			69	%
Retail		1,223			1,420			578			551			547		(197	)		(14	)		676			124			1,223			547		676			124

Total allowance for credit losses	$	2,527		$	2,210		$	1,296		$	1,308		$	1,320	$	317			14	%	$	1,207			91	%	$	2,527		$	1,320	$	1,207			91	%

CAPITAL AND RATIOS

(in millions, except ratio data)


	AS OF																											FOR THE SIX MONTHS ENDED JUNE 30,
																JUNE 30, 2020 CHANGE																2020 Change
	Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sept 30, 2019			Jun 30, 2019			Mar 31, 2020						June 30, 2019						2020		2019		2019
																$			%			$			%							$			%
CAPITAL RATIOS AND COMPONENTS (PRELIMINARY)
CET1 capital	$	14,154		$	14,007		$	14,304		$	14,416		$	14,629		$	147			1	%	($	475	)		(3	%)
Tier 1 capital		16,119			15,577			15,874			15,549			15,762			542			3			357			2
Total capital		19,319			18,592			18,542			18,237			18,582			727			4			737			4
Risk-weighted assets		147,260			148,946			142,915			140,136			138,879			(1,686	)		(1	)		8,381			6
Adjusted average assets¹		174,017			161,715			158,782			156,355			155,956			12,302			8			18,061			12
CET1 capital ratio		9.6	%		9.4	%		10.0	%		10.3	%		10.5	%
Tier 1 capital ratio		10.9			10.5			11.1			11.1			11.3
Total capital ratio		13.1			12.5			13.0			13.0			13.4
Tier 1 leverage ratio		9.3			9.6			10.0			9.9			10.1
TANGIBLE COMMON EQUITY (PERIOD-END)
Common stockholders’ equity	$	20,453		$	20,380		$	20,631		$	20,718		$	20,884		$	73			—	%	($	431	)		(2	%)	$	20,453	$	20,884	($	431	)		(2	%)
Less: Goodwill		7,050			7,050			7,044			7,044			7,040			—			—			10			—			7,050		7,040		10			—
Less: Other intangible assets		63			66			68			71			74			(3	)		(5	)		(11	)		(15	)		63		74		(11	)		(15	)
Add: Deferred tax liabilities²		376			375			374			373			371			1			—			5			1			376		371		5			1

Total tangible common equity	$	13,716		$	13,639		$	13,893		$	13,976		$	14,141		$	77			1	%	($	425	)		(3	%)	$	13,716	$	14,141	($	425	)		(3	%)

TANGIBLE COMMON EQUITY (AVERAGE)
Common stockholders’ equity	$	20,446		$	20,223		$	20,400		$	20,533		$	20,420		$	223			1	%	$	26			—	%	$	20,335	$	20,182	$	153			1	%
Less: Goodwill		7,050			7,046			7,044			7,044			7,040			4			—			10			—			7,048		7,029		19			—
Less: Other intangible assets		65			67			69			73			80			(2	)		(3	)		(15	)		(19	)		66		69		(3	)		(4	)
Add: Deferred tax liabilities²		375			374			373			372			370			1			—			5			1			374		369		5			1

Total tangible common equity	$	13,706		$	13,484		$	13,660		$	13,788		$	13,670		$	222			2	%	$	36			—	%	$	13,595	$	13,453	$	142			1	%

INTANGIBLE ASSETS (PERIOD-END)
Goodwill	$	7,050		$	7,050		$	7,044		$	7,044		$	7,040		$	—			—	%	$	10			—	%	$	7,050	$	7,040	$	10			—	%
Other intangible assets		63			66			68			71			74			(3	)		(5	)		(11	)		(15	)		63		74		(11	)		(15	)

Total intangible assets	$	7,113		$	7,116		$	7,112		$	7,115		$	7,114		($	3	)		—	%	($	1	)		—	%	$	7,113	$	7,114	($	1	)		—	%

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.

²	Deferred tax liabilities relate to tax-deductible goodwill, which is netted against goodwill when calculating tangible common equity.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

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

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.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED

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


		QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
																	2Q20 Change																		2020 Change
		2Q20			1Q20			4Q19			3Q19			2Q19			1Q20						2Q19						2020			2019			2019
																	$			%			$			%									$			%
Total revenue, Underlying:
Total revenue (GAAP)	A	$	1,750		$	1,657		$	1,637		$	1,638		$	1,628		$	93			6	%	$	122			7	%	$	3,407		$	3,216		$	191			6	%
Less: Notable items			—			—			—			—			—			—			—			—			—			—			—			—			—

Total revenue, Underlying (non-GAAP)	B	$	1,750		$	1,657		$	1,637		$	1,638		$	1,628		$	93			6	%	$	122			7	%	$	3,407		$	3,216		$	191			6	%

Noninterest expense, Underlying:
Noninterest expense (GAAP)	C	$	979		$	1,012		$	986		$	973		$	951		($	33	)		(3	%)	$	28			3	%	$	1,991		$	1,888		$	103			5	%
Less: Notable items			19			33			37			19			7			(14	)		(42	)		12			171			52			12			40			NM

Noninterest expense, Underlying (non-GAAP)	D	$	960		$	979		$	949		$	954		$	944		($	19	)		(2	%)	$	16			2	%	$	1,939		$	1,876		$	63			3	%

Pre-provision profit:
Total revenue (GAAP)	A	$	1,750		$	1,657		$	1,637		$	1,638		$	1,628		$	93			6	%	$	122			7	%	$	3,407		$	3,216		$	191			6	%
Less: Noninterest expense (GAAP)	C		979			1,012			986			973			951			(33	)		(3	)		28			3			1,991			1,888			103			5

Pre-provision profit (GAAP)		$	771		$	645		$	651		$	665		$	677		$	126			20	%	$	94			14	%	$	1,416		$	1,328		$	88			7	%

Pre-provision profit, Underlying:
Total revenue, Underlying (non-GAAP)	B	$	1,750		$	1,657		$	1,637		$	1,638		$	1,628		$	93			6	%	$	122			7	%	$	3,407		$	3,216		$	191			6	%
Less: Noninterest expense, Underlying (non-GAAP)	D		960			979			949			954			944			(19	)		(2	)		16			2			1,939			1,876			63			3

Pre-provision profit, Underlying (non-GAAP)		$	790		$	678		$	688		$	684		$	684		$	112			17	%	$	106			15	%	$	1,468		$	1,340		$	128			10	%

Income before income tax expense, Underlying:
Income before income tax expense (GAAP)	E	$	307		$	45		$	541		$	564		$	580		$	262			NM		($	273	)		(47	%)	$	352		$	1,146		($	794	)		(69	%)
Less: Expense before income tax benefit related to notable items			(19	)		(33	)		(37	)		(19	)		(7	)		14			42			(12	)		(171	)		(52	)		(12	)		(40	)		NM

Income before income tax expense, Underlying (non-GAAP)	F	$	326		$	78		$	578		$	583		$	587		$	248			NM		($	261	)		(44	%)	$	404		$	1,158		($	754	)		(65	%)

Income tax expense, Underlying:
Income tax expense (GAAP)	G	$	54		$	11		$	91		$	115		$	127		$	43			NM		($	73	)		(57	%)	$	65		$	254		($	189	)		(74	%)
Less: Income tax benefit related to notable items			(9	)		(8	)		(33	)		(15	)		(2	)		(1	)		(13	)		(7	)		NM			(17	)		(3	)		(14	)		NM

Income tax expense, Underlying (non-GAAP)	H	$	63		$	19		$	124		$	130		$	129		$	44			232	%	($	66	)		(51	%)	$	82		$	257		($	175	)		(68	%)

Net income, Underlying:
Net income (GAAP)	I	$	253		$	34		$	450		$	449		$	453		$	219			NM		($	200	)		(44	%)	$	287		$	892		($	605	)		(68	%)
Add: Notable items, net of income tax benefit			10			25			4			4			5			(15	)		(60	)		5			100			35			9			26			NM

Net income, Underlying (non-GAAP)	J	$	263		$	59		$	454		$	453		$	458		$	204			NM		($	195	)		(43	%)	$	322		$	901		($	579	)		(64	%)

Net income available to common stockholders, Underlying:
Net income available to common stockholders (GAAP)	K	$	225		$	12		$	427		$	432		$	435		$	213			NM		($	210	)		(48	%)	$	237		$	859		($	622	)		(72	%)
Add: Notable items, net of income tax benefit			10			25			4			4			5			(15	)		(60	)		5			100			35			9			26			NM

Net income available to common stockholders, Underlying (non-GAAP)	L	$	235		$	37		$	431		$	436		$	440		$	198			NM		($	205	)		(47	%)	$	272		$	868		($	596	)		(69	%)

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED

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


		QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
																	2Q20 Change																		2020 Change
		2Q20			1Q20			4Q19			3Q19			2Q19			1Q20						2Q19						2020			2019			2019
																	$/bps			%			$/bps			%									$/bps			%
Operating leverage:
Total revenue (GAAP)	A	$	1,750		$	1,657		$	1,637		$	1,638		$	1,628		$	93			5.55	%	$	122			7.49	%	$	3,407		$	3,216		$	191			5.94	%
Less: Noninterest expense (GAAP)	C		979			1,012			986			973			951			(33	)		(3.41	)		28			2.89			1,991			1,888			103			5.46

Operating leverage																					8.96	%					4.60	%											0.48	%

Operating leverage, Underlying:
Total revenue, Underlying (non-GAAP)	B	$	1,750		$	1,657		$	1,637		$	1,638		$	1,628		$	93			5.55	%	$	122			7.49	%	$	3,407		$	3,216		$	191			5.94	%
Less: Noninterest expense, Underlying (non-GAAP)	D		960			979			949			954			944			(19	)		(2.01	)		16			1.62			1,939			1,876			63			3.34

Operating leverage, Underlying (non-GAAP)																					7.56	%					5.87	%											2.60	%

Efficiency ratio and efficiency ratio, Underlying:
Efficiency ratio	C/A		55.91	%		61.10	%		60.28	%		59.40	%		58.41	%		(519) bps						(250) bps						58.43	%		58.70	%		(27) bps
Efficiency ratio, Underlying (non-GAAP)	D/B		54.85			59.08			58.02			58.22			58.02			(423) bps						(317) bps						56.91			58.34			(143) bps
Effective income tax rate and effective income tax rate, Underlying:
Effective income tax rate	G/E		17.69	%		24.13	%		16.76	%		20.46	%		21.86	%		(644) bps						(417) bps						18.51	%		22.14	%		(363) bps
Effective income tax rate, Underlying (non-GAAP)	H/F		19.36			24.52			21.52			22.29			21.89			(516) bps						(253) bps						20.36			22.16			(180) bps
Return on average common equity and return on average common equity, Underlying:
Average common equity (GAAP)	M	$	20,446		$	20,223		$	20,400		$	20,533		$	20,420		$	223			1	%	$	26			—	%	$	20,335		$	20,182		$	153			1	%
Return on average common equity	K/M		4.44	%		0.24	%		8.30	%		8.35	%		8.54	%		420 bps						(410) bps						2.35	%		8.58	%		(623) bps
Return on average common equity, Underlying (non-GAAP)	L/M		4.63			0.74			8.36			8.45			8.63			389 bps						(400) bps						2.69			8.67			(598) bps
Return on average tangible common equity and return on average tangible common equity, Underlying:
Average common equity (GAAP)	M	$	20,446		$	20,223		$	20,400		$	20,533		$	20,420		$	223			1	%	$	26			—	%	$	20,335		$	20,182		$	153			1	%
Less: Average goodwill (GAAP)			7,050			7,046			7,044			7,044			7,040			4			—			10			—			7,048			7,029			19			—
Less: Average other intangibles (GAAP)			65			67			69			73			80			(2	)		(3	)		(15	)		(19	)		66			69			(3	)		(4	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			375			374			373			372			370			1			—			5			1			374			369			5			1

Average tangible common equity	N	$	13,706		$	13,484		$	13,660		$	13,788		$	13,670		$	222			2	%	$	36			—	%	$	13,595		$	13,453		$	142			1	%

Return on average tangible common equity	K/N		6.62	%		0.36	%		12.39	%		12.44	%		12.75	%		626 bps						(613) bps						3.51	%		12.87	%		(936) bps
Return on average tangible common equity, Underlying (non- GAAP)	L/N		6.90			1.10			12.49			12.58			12.89			580 bps						(599) bps						4.03			13.00			(897) bps
Return on average total assets and return on average total assets, Underlying:
Average total assets (GAAP)	O	$	179,793		$	167,177		$	164,646		$	162,110		$	161,489		$	12,616			8	%	$	18,304			11	%	$	173,485		$	160,955		$	12,530			8	%
Return on average total assets	I/O		0.57	%		0.08	%		1.08	%		1.10	%		1.13	%		49 bps						(56) bps						0.33	%		1.12	%		(79) bps
Return on average total assets, Underlying (non-GAAP)	J/O		0.59			0.14			1.09			1.11			1.14			45 bps						(55) bps						0.37			1.13			(76) bps

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED

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


		QUARTERLY TRENDS																											FOR THE SIX MONTHS ENDED JUNE 30,
																	2Q20 Change																		2020 Change
		2Q20			1Q20			4Q19			3Q19			2Q19			1Q20						2Q19						2020			2019			2019
																	$/bps			%			$/bps			%									$/bps			%
Return on average total tangible assets and return on average total tangible assets, Underlying:
Average total assets (GAAP)	P	$	179,793		$	167,177		$	164,646		$	162,110		$	161,489		$	12,616			8	%	$	18,304			11	%	$	173,485		$	160,955		$	12,530			8	%
Less: Average goodwill (GAAP)			7,050			7,046			7,044			7,044			7,040			4			—			10			—			7,048			7,029			19			—
Less: Average other intangibles (GAAP)			65			67			69			73			80			(2	)		(3	)		(15	)		(19	)		66			69			(3	)		(4	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			375			374			373			372			370			1			—			5			1			374			369			5			1

Average tangible assets	Q	$	173,053		$	160,438		$	157,906		$	155,365		$	154,739		$	12,615			8	%	$	18,314			12	%	$	166,745		$	154,226		$	12,519			8	%

Return on average total tangible assets	I/Q		0.59	%		0.09	%		1.13	%		1.15	%		1.17	%		50 bps						(58	) bps					0.35	%		1.17	%		(82) bps
Return on average total tangible assets, Underlying (non-GAAP)	J/Q		0.61			0.15			1.14			1.16			1.19			46 bps						(58	) bps					0.39			1.18			(79) bps
Tangible book value per common share:
Common shares - at period-end (GAAP)	R		426,824,594			426,586,533			433,121,083			443,913,525			457,903,826			238,061			—	%		(31,079,232	)		(7	%)		426,824,594			457,903,826			(31,079,232	)		(7	%)
Common stockholders’ equity (GAAP)		$	20,453		$	20,380		$	20,631		$	20,718		$	20,884		$	73			—		($	431	)		(2	)	$	20,453		$	20,884		($	431	)		(2	)
Less: Goodwill (GAAP)			7,050			7,050			7,044			7,044			7,040			—			—			10			—			7,050			7,040			10			—
Less: Other intangible assets (GAAP)			63			66			68			71			74			(3	)		(5	)		(11	)		(15	)		63			74			(11	)		(15	)
Add: Deferred tax liabilities related to goodwill (GAAP)			376			375			374			373			371			1			—			5			1			376			371			5			1

Tangible common equity	S	$	13,716		$	13,639		$	13,893		$	13,976		$	14,141		$	77			1	%	($	425	)		(3	%)	$	13,716		$	14,141		($	425	)		(3	%)

Tangible book value per common share	S/R	$	32.13		$	31.97		$	32.08		$	31.48		$	30.88		$	0.16			1	%	$	1.25			4	%	$	32.13		$	30.88		$	1.25			4	%
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)	T		426,613,053			427,718,421			434,684,606			445,703,987			458,154,335			(1,105,368	)		—	%		(31,541,282	)		(7	%)		427,165,737			459,426,685			(32,260,948	)		(7	%)
Average common shares outstanding -diluted (GAAP)	U		427,566,920			429,388,855			436,500,829			447,134,595			459,304,224			(1,821,935	)		—			(31,737,304	)		(7	)		428,292,580			460,857,535			(32,564,955	)		(7	)
Net income per average common share - basic (GAAP)	K/T	$	0.53		$	0.03		$	0.98		$	0.97		$	0.95		$	0.50			NM		($	0.42	)		(44	)	$	0.56		$	1.87		($	1.31	)		(70	)
Net income per average common share - diluted (GAAP)	K/U		0.53			0.03			0.98			0.97			0.95			0.50			NM			(0.42	)		(44	)		0.55			1.86			(1.31	)		(70	)
Net income per average common share - basic, Underlying (non-GAAP)	L/T		0.55			0.09			0.99			0.98			0.96			0.46			NM			(0.41	)		(43	)		0.64			1.89			(1.25	)		(66	)
Net income per average common share - diluted, Underlying (non- GAAP)	L/U		0.55			0.09			0.99			0.98			0.96			0.46			NM			(0.41	)		(43	)		0.64			1.88			(1.24	)		(66	)
Dividend payout ratio and dividend payout ratio, Underlying:
Cash dividends declared and paid per common share	V	$	0.39		$	0.39		$	0.36		$	0.36		$	0.32		$	—			—	%	$	0.07			22	%	$	0.78		$	0.64		$	0.14			22	%
Dividend payout ratio	V/(K/T)		74	%		1,398	%		37	%		37	%		34	%		NM						NM						140	%		34	%		NM
Dividend payout ratio, Underlying (non-GAAP)	V/(L/T)		71			451			36			37			33			NM						NM						122			34			NM

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED

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


	QUARTERLY TRENDS																						FOR THE SIX MONTHS ENDED JUNE 30,
											2Q20 Change																2020 Change
	2Q20		1Q20		4Q19		3Q19		2Q19		1Q20						2Q19						2020		2019		2019
											$			%			$			%							$/bps			%
Salaries and employee benefits, Underlying:
Salaries and employee benefits (GAAP)	$	513	$	549	$	502	$	508	$	507	($	36	)		(7	%)	$	6			1	%	$	1,062	$	1,016	$	46			5	%
Less: Notable items		4		10		6		5		2		(6	)		(60	)		2			100			14		3		11			NM

Salaries and employee benefits, Underlying (non-GAAP)	$	509	$	539	$	496	$	503	$	505	($	30	)		(6	%)	$	4			1	%	$	1,048	$	1,013	$	35			3	%

Equipment and software expense, Underlying:
Equipment and software expense (GAAP)	$	142	$	133	$	133	$	130	$	126	$	9			7	%	$	16			13	%	$	275	$	251	$	24			10	%
Less: Notable items		—		1		3		—		—		(1	)		(100	)		—			—			1		—		1			100

Equipment and software expense, Underlying (non-GAAP)	$	142	$	132	$	130	$	130	$	126	$	10			8	%	$	16			13	%	$	274	$	251	$	23			9	%

Outside services, Underlying:
Outside services (GAAP)	$	131	$	135	$	142	$	128	$	118	($	4	)		(3	%)	$	13			11	%	$	266	$	228	$	38			17	%
Less: Notable items		12		18		20		14		5		(6	)		(33	)		7			140			30		9		21			233

Outside services, Underlying (non-GAAP)	$	119	$	117	$	122	$	114	$	113	$	2			2	%	$	6			5	%	$	236	$	219	$	17			8	%

Occupancy, Underlying:
Occupancy (GAAP)	$	82	$	84	$	88	$	80	$	82	($	2	)		(2	%)	$	—			—	%	$	166	$	165	$	1			1	%
Less: Notable items		3		4		8		—		—		(1	)		(25	)		3			100			7		—		7			100

Occupancy, Underlying (non-GAAP)	$	79	$	80	$	80	$	80	$	82	($	1	)		(1	%)	($	3	)		(4	%)	$	159	$	165	($	6	)		(4	%)

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS

(in millions, except ratio data)


		SECOND QUARTER 2020												FIRST QUARTER 2020												FOURTH QUARTER 2019
		Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income (loss) available to common stockholders:
Net income (loss)	A	$	320		$	221		($	288	)	$	253		$	236		$	179		($	381	)	$	34		$	209		$	231		$	10		$	450
Less: Preferred stock dividends			—			—			28			28			—			—			22			22			—			—			23			23

Net income (loss) available to common stockholders	B	$	320		$	221		($	316	)	$	225		$	236		$	179		($	403	)	$	12		$	209		$	231		($	13	)	$	427

Return on average total tangible assets:
Average total assets (GAAP)		$	71,634		$	65,280		$	42,879		$	179,793		$	68,415		$	59,005		$	39,757		$	167,177		$	68,069		$	56,407		$	40,170		$	164,646
Less: Average goodwill (GAAP)			122			52			6,876			7,050			122			48			6,876			7,046			122			46			6,876			7,044
Average other intangibles (GAAP)			41			6			18			65			43			6			18			67			63			6			—			69
Add: Average deferred tax liabilities related to goodwill (GAAP)			2			1			372			375			1			1			372			374			1			1			371			373

Average tangible assets	C	$	71,473		$	65,223		$	36,357		$	173,053		$	68,251		$	58,952		$	33,235		$	160,438		$	67,885		$	56,356		$	33,665		$	157,906

Return on average total tangible assets	A/C		1.80	%		1.36	%		NM			0.59	%		1.39	%		1.22	%		NM			0.09	%		1.22	%		1.63	%		NM			1.13	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$	735		$	213		$	31		$	979		$	738		$	221		$	53		$	1,012		$	718		$	219		$	49		$	986
Net interest income (GAAP)			814			419			(73	)		1,160			793			365			2			1,160			796			363			(16	)		1,143
Noninterest income (GAAP)			428			144			18			590			357			125			15			497			296			175			23			494

Total revenue (GAAP)	E	$	1,242		$	563		($	55	)	$	1,750		$	1,150		$	490		$	17		$	1,657		$	1,092		$	538		$	7		$	1,637

Efficiency ratio	D/E		59.19	%		37.93	%		NM			55.91	%		64.16	%		45.06	%		NM			61.10	%		65.74	%		40.60	%		NM			60.28	%


		THIRD QUARTER 2019												SECOND QUARTER 2019
		Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income (loss) available to common stockholders:
Net income	A	$	251		$	196		$	2		$	449		$	213		$	216		$	24		$	453
Less: Preferred stock dividends			—			—			17			17			—			—			18			18

Net income (loss) available to common stockholders	B	$	251		$	196		($	15	)	$	432		$	213		$	216		$	6		$	435

Return on average total tangible assets:
Average total assets (GAAP)		$	66,365		$	55,614		$	40,131		$	162,110		$	65,485		$	56,135		$	39,869		$	161,489
Less: Average goodwill (GAAP)			122			46			6,876			7,044			119			45			6,876			7,040
Average other intangibles (GAAP)			66			7			—			73			73			7			—			80
Add: Average deferred tax liabilities related to goodwill (GAAP)			1			1			370			372			—			—			370			370

Average tangible assets	C	$	66,178		$	55,562		$	33,625		$	155,365		$	65,293		$	56,083		$	33,363		$	154,739

Return on average total tangible assets	A/C		1.50	%		1.40	%		NM			1.15	%		1.31	%		1.54	%		NM			1.17	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$	718		$	213		$	42		$	973		$	715		$	217		$	19		$	951
Net interest income (GAAP)			799			360			(14	)		1,145			799			371			(4	)		1,166
Noninterest income (GAAP)			336			133			24			493			277			149			36			462

Total revenue (GAAP)	E	$	1,135		$	493		$	10		$	1,638		$	1,076		$	520		$	32		$	1,628

Efficiency ratio	D/E		63.28	%		43.35	%		NM			59.40	%		66.43	%		41.58	%		NM			58.41	%

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS (CONTINUED)

(in millions, except ratio data)


		FOR THE SIX MONTHS ENDED JUNE 30,
		2020												2019
		Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income (loss) available to common stockholders:
Net income (loss)	A	$	556		$	400		($	669	)	$	287		$	415		$	443		$	34		$	892
Less: Preferred stock dividends			—			—			50			50			—			—			33			33

Net income (loss) available to common stockholders	B	$	556		$	400		($	719	)	$	237		$	415		$	443		$	1		$	859

Return on average total tangible assets:
Average total assets (GAAP)		$	70,024		$	62,142		$	41,319		$	173,485		$	65,247		$	55,884		$	39,824		$	160,955
Less: Average goodwill (GAAP)			122			50			6,876			7,048			119			34			6,876			7,029
Average other intangibles (GAAP)			42			6			18			66			64			5			—			69
Add: Average deferred tax liabilities related to goodwill (GAAP)			2			1			371			374			—			—			369			369

Average tangible assets	C	$	69,862		$	62,087		$	34,796		$	166,745		$	65,064		$	55,845		$	33,317		$	154,226

Return on average total tangible assets	A/C		1.60	%		1.29	%		NM			0.35	%		1.29	%		1.60	%		NM			1.17	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$	1,473		$	434		$	84		$	1,991		$	1,415		$	426		$	47		$	1,888
Net interest income (GAAP)			1,607			784			(71	)		2,320			1,587			743			(4	)		2,326
Noninterest income (GAAP)			785			269			33			1,087			524			299			67			890

Total revenue (GAAP)	E	$	2,392		$	1,053		($	38	)	$	3,407		$	2,111		$	1,042		$	63		$	3,216

Efficiency ratio	D/E		61.58	%		41.25	%		NM			58.43	%		67.01	%		40.84	%		NM			58.70	%