EX-99.1 2 a3q2023earningsrelease.htm 3Q2023 EARNINGS RELEASE Document

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First Horizon Corporation Reports Third Quarter 2023 Net Income Available to Common Shareholders of
$129 Million, or EPS of $0.23; $150 Million, or $0.27, on an Adjusted Basis*

Period end deposits increased $1.6 billion QoQ or 2%, up 6% year-to-date with common equity tier 1 ratio of 11.1%

Period end loans increased $0.5 billion QoQ, or 1%, up 6% year-to-date

ROTCE of 8.0% and adjusted ROTCE of 9.2% with tangible book value per share of $11.22*

MEMPHIS, TN (October 18, 2023) – First Horizon Corporation (NYSE: FHN or “First Horizon”) today reported third quarter net income available to common shareholders ("NIAC") of $129 million, or earnings per share of $0.23, compared with second quarter 2023 NIAC of $317 million, or earnings per share of $0.56.

Third quarter 2023 results were reduced by a net $20 million after-tax, or $0.04 per share, of notable items compared with a benefit of $98 million, or $0.17 per share, in second quarter 2023. Excluding notable items, adjusted third quarter 2023 NIAC of $150 million, or $0.27 per share, decreased from $219 million, or $0.39 per share, in second quarter 2023.

“Our third quarter results demonstrated the strength and resilience of our company. Our loan and deposit trends continue to be solid. We opened more than 19,000 new deposit accounts bringing over $1 billion in new balances,” said Chairman, President and Chief Executive Officer Bryan Jordan. “We remain disciplined with credit quality; as the economic environment drives credit normalization, we expect credit to perform well over the cycle.”

“Thanks to the hard work of our associates, we’ve proven that we can be nimble and flexible with capital and expense control while managing the dynamics of our balance sheet across various economic cycles. Our actions will give us the ability to generate strong shareholder returns over the long-term,” continued Jordan.


Notable Items
Notable Items
Quarterly, Unaudited ($s in millions, except per share data)3Q232Q233Q22
Summary of Notable Items:
Gain on merger termination$— $225 $— 
Gain on sale of title services business (other noninterest income)— — 21 
Gain related to equity securities investment (other noninterest income)— — 10 
Net Merger/acquisition/transaction-related items— (30)(24)
Other notable expenses (10)(65)— 
Total Notable items (pre-tax)(10)130 7 
Total Notable items (after-tax) *(20)98 5 
EPS impact of notable items$(0.04)$0.17 $0.01 
Numbers may not foot due to rounding.
* 3Q23 includes after-tax notable items of $13 million comprised of $24 million related to the surrender of approximately $214 million in book value of bank owned life insurance policies, partially offset by an $11 million benefit from merger-related tax items.

Third quarter pre-tax net notable items include $10 million of restructuring costs. Additionally, third quarter includes after-tax notable items of $13 million comprised of $24 million related to the surrender of approximately $214 million in book value of bank owned life insurance policies, partially offset by an $11 million benefit from merger-related tax items.

*ROTCE, PPNR, tangible book value per share, loans and leases excluding LMC, and "Adjusted" results are Non-GAAP Financial Measures; NII, Total Revenue, NIM and PPNR are presented on a fully taxable equivalent basis; References to loans include leases and EPS are based on diluted shares; Capital ratios are preliminary. See page 5 for information on our use of Non-GAAP measures and their reconciliation to GAAP beginning on page 21.
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Third Quarter 2023 versus Second Quarter 2023 Highlights

•Total revenue of $778 million decreased $253 million from decreased noninterest income due to a $225 million gain on merger termination recognized in second quarter and lower net interest income. Adjusted revenue of $782 million decreased $28 million, or 3%, primarily due to a decline in net interest income.
•Net interest income of $605 million decreased $26 million, or 4%, as the benefit of higher loan rates and loan balances was more than offset by higher funding costs from customer deposit growth.
•Noninterest income of $173 million decreased $227 million due to a $225 million gain on merger termination recognized in second quarter. Adjusted noninterest income of $173 million decreased $2 million as lower deferred compensation income was partially offset by higher FHLB dividends received in third quarter.
•Noninterest expense of $474 million decreased $81 million driven by a $55 million decline in other notable items and $30 million of merger-related costs recognized in second quarter. Adjusted noninterest expense of $465 million increased $4 million as an increase in other noninterest expense from higher FDIC fees was partially offset by lower personnel expense.
•Provision expense of $110 million increased $60 million largely driven by a credit loss on a single relationship and loan growth.
•Average interest-earning assets of $76.3 billion increased $1.0 billion driven by a $1.5 billion increase in loans somewhat offset by a $0.4 billion decrease in the investment security portfolio and a $0.2 billion decrease in interest-bearing deposits with banks.
•Average deposits of $66.5 billion increased $5.1 billion, or 8%, driven by a $6.6 billion increase in interest-bearing deposits partially offset by a $1.5 billion decrease in DDA and other noninterest-bearing deposits.
•Total deposit costs of 244 basis points increased 71 basis points, reflecting a full quarter impact from a successful deposit campaign and the impact of a higher Fed Funds rate.
•Period-end deposits of $67.0 billion increased $1.6 billion reflecting a $2.6 billion increase in interest-bearing deposits partially offset by a $1.0 billion decrease in noninterest-bearing.
•Average loans increased $1.5 billion driven by a $1.0 billion increase in commercial loans and a $0.5 billion increase in consumer loans.
•Period-end loans increased $0.5 billion, or 1%, driven by a $0.3 billion increase in commercial and a $0.2 billion increase in consumer.
•Allowance for credit losses ("ACL") to loans ratio increased slightly to 1.36% as of September 30, 2023. The ACL to nonperforming loans ratio of 214% increased from 206% at June 30, 2023.
•Net charge-offs of $95 million increased $72 million largely driven by a single credit from a company in bankruptcy; nonperforming loans of $394 million decreased $8 million and the nonperforming loan ratio of 0.64% decreased from 0.66% at June 30, 2023.
•ROCE of 6.3%; ROTCE of 8.0%; Adjusted ROTCE of 9.2%; CET 1 ratio of 11.1%; and total capital ratio of 13.6%.
•Tangible book value per share of $11.22 at September 30, 2023 compared with $11.50 at June 30, 2023. The decrease was driven by higher mark-to-market on the AFS securities portfolio and interest rate hedges.

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SUMMARY RESULTS
Quarterly, Unaudited
3Q23 Change vs.
($s in millions, except per share and balance sheet data)3Q232Q233Q222Q233Q22
$/bp%$/bp%
Income Statement
Interest income - taxable equivalent1
$1,084 $1,019 $737 $65 6 %$347 47 %
Interest expense- taxable equivalent1
475 385 71 90 23 404 NM
Net interest income- taxable equivalent609 635 666 (26)(4)(57)(9)
Less: Taxable-equivalent adjustment4 4 4 — — — — 
Net interest income605 631 662 (26)(4)(57)(9)
Noninterest income173 400 213 (227)(57)(40)(19)
      Total revenue778 1,031 875 (253)(25)(97)(11)
Noninterest expense474 555 468 (81)(15)6 1 
Pre-provision net revenue3
304 475 406 (171)(36)(102)(25)
Provision for credit losses110 50 60 60 120 50 83 
Income before income taxes194 425 346 (231)(54)(152)(44)
Provision for income taxes52 96 78 (44)(46)(26)(33)
Net income142 329 268 (187)(57)(126)(47)
Net income attributable to noncontrolling interest5 5 3 — — 2 67 
Net income attributable to controlling interest137 325 265 (188)(58)(128)(48)
Preferred stock dividends8 8 8 — — — — 
Net income available to common shareholders$129 $317 $257 $(188)(59)%$(128)(50)%
Adjusted net income4
$163 $231 $263 $(68)(29)%$(100)(38)%
Adjusted net income available to common shareholders4
$150 $219 $252 $(69)(32)%$(102)(40)%
Common stock information
EPS$0.23 $0.56 $0.45 $(0.33)(59)%$(0.22)(49)%
Adjusted EPS4
$0.27 $0.39 $0.44 $(0.12)(31)%$(0.17)(39)%
Diluted shares8
561 561 570 — — %(9)(2)%
Key performance metrics
Net interest margin3.17 %3.38 %3.48 %(21)bp(31)bp
Efficiency ratio60.92 53.87 53.56 705 736 
Adjusted efficiency ratio4
59.39 56.90 52.42 249 697 
Effective income tax rate26.67 22.63 22.58 404 409 
Return on average assets0.68 1.60 1.29 (92)(61)
Adjusted return on average assets4
0.78 1.13 1.27 (35)(49)
Return on average common equity (“ROCE")6.3 16.4 13.9 (1,012)(757)
Return on average tangible common equity (“ROTCE”)4
8.0 21.1 18.2 (1,315)(1,028)
Adjusted ROTCE4
9.2 14.6 17.9 (538)(868)
Noninterest income as a % of total revenue22.27 38.82 24.30 (1,655)(203)
Adjusted noninterest income as a % of total revenue4
22.16 %21.63 %21.37 %53 bp79 bp
Balance Sheet (billions)
Average loans$61.4 $59.9 $56.5 $1.5 3 %$4.9 9 %
Average deposits66.5 61.4 68.1 5.1 8 (1.6)(2)
Average assets83.2 82.3 82.6 0.9 1 0.7 1 
Average common equity$8.2 $7.7 $7.4 $0.4 5 %$0.8 11 %
Asset Quality Highlights
Allowance for credit losses to loans and leases1.36 %1.35 %1.31 %1 bp5 bp
Net charge-off ratio0.61 0.16 0.08 46 53 
Nonperforming loan and leases ratio0.64 %0.66 %0.51 %(2)bp13 bp
Capital Ratio Highlights (current quarter is an estimate)
Common Equity Tier 111.1 %11.1 %9.9 %4 bp118 bp
Tier 112.1 12.1 11.7 3 41 
Total Capital13.6 13.6 13.1 5 53 
Tier 1 leverage10.5 %10.5 %9.8 %(5)bp68 bp
Numbers may not foot due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 20.
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Third Quarter 2023 versus Second Quarter 2023
Net interest income
Net interest income of $605 million decreased $26 million as the benefit of higher rates and loan balances was more than offset by higher funding costs driven by customer deposit growth. Net interest margin of 3.17% decreased 21 basis points largely as the benefit of higher rates and loan growth was more than offset by the impact of higher funding costs.

Noninterest income
Noninterest income of $173 million decreased $227 million due to a $225 million gain on merger termination recognized in second quarter. Adjusted noninterest income of $173 million decreased $2 million driven by an $8 million decrease in deferred compensation and lower fixed income, partially offset by higher FHLB dividends received in third quarter. Fixed income average daily revenue of $301 thousand decreased 14% compared with $348 thousand in second quarter 2023 due to continuing challenging market conditions.

Noninterest expense
Noninterest expense of $474 million decreased $81 million and included an $85 million decrease in notable items. Adjusted noninterest expense of $465 million increased $4 million as an increase in other noninterest expense was partially offset by lower personnel expense.

Loans and leases
Average loan and lease balances of $61.4 billion increased $1.5 billion reflecting a 2% increase in commercial and a 4% increase in consumer. Commercial loan growth of $1.0 billion was driven by a $0.6 billion increase in C&I loans. Consumer loan growth increased $0.5 billion compared to the prior quarter driven by an increase in consumer real estate. Loan balances excluding loans to mortgage companies (LMC) increased $1.4 billion compared to the prior quarter, driven by a $0.9 billion increase in commercial and a $0.5 billion increase in consumer.

Period-end loans and leases of $61.8 billion increased $0.5 billion from second quarter 2023, reflecting a 1% increase in commercial and a 1% increase in consumer. Before the $0.5 billion decrease of LMC, period-end loans increased $0.9 billion, or 2%, driven by a $0.7 billion increase in commercial and a $0.2 billion increase in consumer.

Deposits
Average deposits of $66.5 billion increased $5.1 billion, or 8%, driven by FHN's promotional deposit campaigns. Period-end deposits of $67.0 billion increased $1.6 billion reflecting a $2.6 billion increase in interest-bearing deposits partially offset by a $1.0 billion decrease in noninterest-bearing. Total deposit costs of 244 basis points increased 71 basis points with a 81 basis point increase in interest-bearing deposit costs.

Asset quality
Provision expense of $110 million increased $60 million in third quarter largely reflecting a credit loss on a single relationship and the impact of 2% loan growth excluding LMC.

Net charge-offs increased to $95 million, or 61 basis points, from $23 million, or 16 basis points, in second quarter 2023, largely driven by a single credit from a company in bankruptcy.

Nonperforming loans of $394 million decreased $8 million. Third quarter 2023 ACL to nonperforming loans coverage ratio of 214% compared with 206% in second quarter 2023.

The ACL to loans ratio increased to 1.36% from 1.35% in second quarter 2023.


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Capital
CET1 ratio of 11.1% and total capital ratio of 13.6% in third quarter 2023 consistent with second quarter 2023.

Income taxes
Third quarter 2023 effective tax rate of 26.7% compared with 22.6% in second quarter 2023. On an adjusted basis, the effective tax rate of 20.1% in the third quarter 2023 decreased from 21.6% in second quarter 2023. Third quarter includes after-tax notable items of $24 million related to the surrender of approximately $214 million in book value of bank owned life insurance policies, partially offset by an $11 million benefit from merger-related tax items.

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

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

FHN assumes no obligation to update or revise any forward-looking statements that are made in this document or in any other statement, release, report, or filing from time to time.

Use of Non-GAAP Measures and Regulatory Measures that are not GAAP

Certain measures included in this report are “non-GAAP,” meaning they are not presented in accordance with generally accepted accounting principles in the U.S. and also are not codified in U.S. banking regulations currently applicable to FHN. Although other entities may use calculation methods that differ from those used by FHN for non-GAAP measures, FHN’s management believes such measures are relevant to understanding the financial condition, capital position, and financial results of FHN and its business segments. Non-GAAP measures are reported to FHN’s management and Board of Directors through various internal reports.

The non-GAAP measures presented in this earnings release are fully taxable equivalent measures, pre-provision net revenue ("PPNR"), Loans to Mortgage Companies ("LMC"), return on average tangible common equity (“ROTCE”), tangible common equity (“TCE”) to tangible assets (“TA”), tangible book value ("TBV") per common share, and various consolidated and segment results and performance measures and ratios adjusted for notable items.

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

Refer to the tabular reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items, beginning on page 21.

Conference Call Information
Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on October 18, 2023 by dialing 1-833-470-1428 (if calling from the U.S.) or 404-975-4839 (if calling from outside the U.S) and entering access code 535504. The conference call will begin at 8:30 a.m. CT.

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

A replay of the call will be available beginning at noon CT on October 19 until midnight CT on November 3, 2023. To listen to the replay, dial 1-866-813-9403 (U.S. callers); the access code is 902096. A replay of the webcast will also be available on our website on October 19 and will be archived on the site for one year.

First Horizon Corp. (NYSE: FHN), with $82.5 billion in assets as of September 30, 2023, is a leading regional financial services company, dedicated to helping our clients, communities and associates unlock their full potential with capital and counsel. Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates in 12 states across the southern U.S. The Company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services. First Horizon has been recognized as one of the nation's best employers by Fortune and Forbes magazines and a Top 10 Most Reputable U.S. Bank. More information is available at www.FirstHorizon.com.

Contact: Investor Relations - NRFlanders@firsthorizon.com
Media Relations - Beth.Ardoin@firsthorizon.com
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CONSOLIDATED INCOME STATEMENT
Quarterly, Unaudited
     3Q23 Change vs.
($s in millions, except per share data)3Q232Q231Q234Q223Q222Q233Q22
$ %$ %
Interest income - taxable equivalent1
$1,084 $1,019 $923 $860 $737 $65 6 %$347 47 %
Interest expense- taxable equivalent1
475 385 232 148 71 90 23 404 NM
Net interest income- taxable equivalent609 635 691 712 666 (26)(4)(57)(9)
Less: Taxable-equivalent adjustment4 4 4 4 4 — — — — 
Net interest income605 631 688 709 662 (26)(4)(57)(9)
Noninterest income:
Fixed income28 30 39 35 46 (2)(7)(18)(39)
Mortgage banking and title7 6 5 4 9 1 17 (2)(22)
Brokerage, trust, and insurance34 35 34 33 34 (1)(3)— — 
Service charges and fees60 59 55 56 56 1 2 4 7 
Card and digital banking fees20 21 19 20 21 (1)(5)(1)(5)
Deferred compensation income— 8 3 7 (3)(8)(100)3 100 
Gain on merger termination— 225 — — — (225)(100)— NM
Other noninterest income25 17 15 20 50 8 47 (25)(50)
Total noninterest income173 400 171 174 213 (227)(57)(40)(19)
Total revenue778 1,031 859 882 875 (253)(25)(97)(11)
Noninterest expense:
Personnel expense:
Salaries and benefits188 191 188 178 186 (3)(2)2 1 
Incentives and commissions77 86 80 97 92 (9)(10)(15)(16)
Deferred compensation expense— 8 3 7 (2)(8)(100)2 100 
Total personnel expense266 285 271 281 275 (19)(7)(9)(3)
Occupancy and equipment2
67 68 70 71 71 (1)(1)(4)(6)
Outside services69 71 66 70 66 (2)(3)3 5 
Amortization of intangible assets12 12 12 13 13 — — (1)(8)
Other noninterest expense60 119 59 69 44 (59)(50)16 36 
Total noninterest expense474 555 478 503 468 (81)(15)6 1 
Pre-provision net revenue3
304 475 381 379 406 (171)(36)(102)(25)
Provision for credit losses110 50 50 45 60 60 120 50 83 
Income before income taxes194 425 331 334 346 (231)(54)(152)(44)
Provision for income taxes52 96 75 64 78 (44)(46)(26)(33)
Net income142 329 256 270 268 (187)(57)(126)(47)
Net income attributable to noncontrolling interest5 5 4 4 3 — — 2 67 
Net income attributable to controlling interest137 325 251 266 265 (188)(58)(128)(48)
Preferred stock dividends8 8 8 8 8 — — — — 
Net income available to common shareholders$129 $317 $243 $258 $257 $(188)(59)%$(128)(50)%
Common Share Data
EPS$0.23 $0.59 $0.45 $0.48 $0.48 $(0.36)(61)%$(0.25)(52)%
Basic shares559 539 537 536 536 20 4 23 4 
Diluted EPS$0.23 $0.56 $0.43 $0.45 $0.45 $(0.33)(59)$(0.22)(49)
Diluted shares8
561 561 572 572 570 — — %(9)(2)%
Effective tax rate26.7 %22.6 %22.7 %19.2 %22.6 %
Numbers may not foot due to rounding. See footnote disclosures on page 20.
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ADJUSTED5 FINANCIAL DATA - SEE NOTABLE ITEMS ON PAGE 9
Quarterly, Unaudited
     3Q23 Change vs.
($s in millions, except per share data)3Q232Q231Q234Q223Q222Q233Q22
$%$%
Net interest income (FTE)1
$609 $635 $691 $712 $666 $(26)(4)%$(57)(9)%
Adjusted noninterest income:
Fixed income28 30 39 35 46 (2)(7)(18)(39)
Adjusted mortgage banking and title7 6 5 4 9 1 17 (2)(22)
Brokerage, trust, and insurance34 35 34 33 34 (1)(3)— — 
Service charges and fees60 59 55 56 56 1 2 4 7 
Card and digital banking fees20 21 19 20 21 (1)(5)(1)(5)
Deferred compensation income— 8 3 7 (3)(8)(100)3 100 
Gain on merger termination— — — — — — NM — NM
Adjusted other noninterest income25 17 15 20 18 8 47 7 39 
Adjusted total noninterest income$173 $175 $171 $173 $181 $(2)(1)%$(8)(4)%
Total revenue (FTE)1
$782 $810 $863 $885 $847 $(28)(3)%$(65)(8)%
Adjusted noninterest expense:
Adjusted personnel expense:
Adjusted salaries and benefits$188 $187 $188 $178 $185 $1 1 %$3 2 %
Adjusted Incentives and commissions68 65 64 70 68 3 5 — — 
Adjusted deferred compensation expense— 8 3 7 (2)(8)(100)2 100 
Adjusted total personnel expense256 260 255 254 251 (4)(2)5 2 
Adjusted occupancy and equipment2
67 68 70 71 70 (1)(1)(3)(4)
Adjusted outside services69 68 63 64 64 1 1 5 8 
Adjusted amortization of intangible assets12 12 12 12 12 — — — — 
Adjusted other noninterest expense60 53 58 58 48 7 13 12 25 
Adjusted total noninterest expense$465 $461 $457 $458 $444 $4 1 %$21 5 %
Adjusted pre-provision net revenue3
$318 $349 $406 $428 $403 $(31)(9)%$(85)(21)%
Provision for credit losses$110 $50 $50 $45 $60 $60 120 %$50 83 %
Adjusted net income available to common shareholders$150 $219 $259 $293 $252 $(69)(32)%$(102)(40)%
Adjusted Common Share Data
Adjusted diluted EPS$0.27 $0.39 $0.45 $0.51 $0.44 $(0.12)(31)%$(0.17)(39)%
Diluted shares8
561 561 572 572 570 — — %(9)(2)%
Adjusted effective tax rate20.1 %21.6 %22.9 %19.8 %22.4 %
Adjusted ROTCE9.2 %14.6 %18.6 %21.7 %17.9 %
Adjusted efficiency ratio59.4 %56.9 %53.0 %51.7 %52.4 %
Numbers may not foot due to rounding.
See footnote disclosures on page 20.

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NOTABLE ITEMS
Quarterly, Unaudited
(In millions)3Q232Q231Q234Q223Q22
Summary of Notable Items:
Gain on merger termination$— $225 $— $— $— 
Gain on sale of title services business— — — 1 21 
Gain related to equity securities investments— — — — 10 
Net Merger/acquisition/transaction-related items— (30)(21)(36)(24)
Other notable expenses*(10)(65)— (10)— 
Total notable items (pre-tax)(10)130 (21)(45)7 
Tax-related notable items **(13)— — — — 
EPS impact of notable items$(0.04)$0.17 $(0.03)$(0.06)$0.01 
Numbers may not foot due to rounding
* 3Q23 includes $10 million of restructuring expenses; 2Q23 includes $50 million contribution to First Horizon Foundation; 2Q23 and 4Q22 includes $15 million and $10 million, respectively of Visa derivative valuation expense.
** 3Q23 includes after-tax notable items of $24 million related to the surrender of approximately $214 million in book value of bank owned life insurance policies, partially offset by an $11 million benefit from merger-related tax items.


IMPACT OF NOTABLE ITEMS:
Quarterly, Unaudited
     
(In millions)3Q232Q231Q234Q223Q22
Impacts of Notable Items:
Noninterest income:
Gain on merger termination$— $(225)$— $— $— 
Other noninterest income— — — (1)(32)
Total noninterest income$— $(225)$— $(1)$(32)
Noninterest expense:
Personnel expenses:
Salaries and benefits$— $(4)$— $— $— 
Incentives and commissions(9)(21)(16)(27)(24)
Deferred compensation expense— — — — — 
Total personnel expenses(10)(25)(16)(27)(25)
Occupancy and equipment2
— — — — (1)
Outside services— (4)(3)(6)(2)
Amortization of intangible assets— — — (1)(1)
Other noninterest expense— (66)(2)(11)4 
Total noninterest expense$(10)$(95)$(21)$(46)$(25)
Income before income taxes$10 $(130)$21 $45 $(7)
Provision for income taxes *(11)(33)6 11 (2)
Net income/(loss) available to common shareholders$20 $(98)$16 $34 $(5)
Numbers may not foot due to rounding
* 3Q23 includes after-tax notable items of $24 million related to the surrender of approximately $214 million in book value of bank owned life insurance policies, partially offset by an $11 million benefit from merger-related tax items.
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FINANCIAL RATIOS
Quarterly, Unaudited
     3Q23 Change vs.
3Q232Q231Q234Q223Q222Q233Q22
FINANCIAL RATIOS$/bp%$/bp%
Net interest margin3.17 %3.38 %3.88 %3.89 %3.48 %(21)bp(31)bp
Return on average assets0.68 %1.60 %1.32 %1.35 %1.29 %(92)(61)
Adjusted return on average assets4
0.78 %1.13 %1.40 %1.52 %1.27 %(35)(49)
Return on average common equity (“ROCE”)6.28 %16.40 %13.34 %14.42 %13.85 %(1,012)(757)
Return on average tangible common equity (“ROTCE”)4
7.95 %21.10 %17.43 %19.14 %18.23 %(1,315)(1,028)
Adjusted ROTCE4
9.21 %14.59 %18.55 %21.68 %17.89 %(538)(868)
Noninterest income as a % of total revenue22.27 %38.82 %19.94 %19.68 %24.30 %(1,655)(203)
Adjusted noninterest income as a % of total revenue4
22.16 %21.63 %19.85 %19.55 %21.37 %53 79 
Efficiency ratio60.92 %53.87 %55.65 %57.07 %53.56 %705 736 
Adjusted efficiency ratio4
59.39 %56.90 %52.95 %51.70 %52.42 %249 697 
CAPITAL DATA
CET1 capital ratio*
11.1 %11.1 %10.4 %10.2 %9.9 %4 bp118 bp
Tier 1 capital ratio*12.1 %12.1 %12.1 %11.9 %11.7 %3 bp41 bp
Total capital ratio*13.6 %13.6 %13.6 %13.3 %13.1 %5 bp53 bp
Tier 1 leverage ratio*10.5 %10.5 %10.7 %10.4 %9.8 %(5)bp68 bp
Risk-weighted assets (“RWA”) (billions)$71.8 $71.5 $69.5 $69.2 $68.6 $— 1 %$3 5 %
Total equity to total assets 10.65 %10.53 %11.02 %10.83 %10.32 %12 bp33 bp
Tangible common equity/tangible assets (“TCE/TA”)4
7.76 %7.71 %7.41 %7.12 %6.64 %5 bp112 bp
Period-end shares outstanding (millions)9
559 559 538 537 537 — — %22 4 %
Cash dividends declared per common share$0.15 $0.15 $0.15 $0.15 $0.15 $— — %$— — %
Book value per common share$14.28 $14.58 $14.11 $13.48 $12.99 $(0.30)(2)%$1.29 10 %
Tangible book value per common share4
$11.22 $11.50 $10.89 $10.23 $9.72 $(0.28)(2)%$1.50 15 %
SELECTED BALANCE SHEET DATA
Loans-to-deposit ratio (period-end balances)92.18 %93.68 %96.10 %91.51 %86.88 %(150)bp530 bp
Loans-to-deposit ratio (average balances)92.35 %97.52 %93.33 %88.73 %82.99 %(517)bp936 bp
Full-time equivalent associates7,340 7,327 7,282 7,477 7,569 13 — %(229)(3)%
Certain previously reported amounts have been reclassified to agree with current presentation.
*Current quarter is an estimate.
See footnote disclosures on page 20.
10

CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited 
     3Q23 Change vs.
(In millions)3Q232Q231Q234Q223Q222Q233Q22
Assets:$%$%
Loans and leases:      
Commercial, financial, and industrial (C&I)$33,163 $33,116 $32,172 $31,780 $31,620 $47 — %$1,543 5 %
Commercial real estate14,121 13,891 13,397 13,228 13,021 230 2 1,100 8 
Total Commercial47,283 47,006 45,570 45,008 44,641 277 1 2,642 6 
Consumer real estate13,685 13,475 12,668 12,253 11,864 210 2 1,821 15 
Credit card and other5
809 813 807 840 849 (4)(1)(40)(5)
Total Consumer14,494 14,289 13,475 13,093 12,712 205 1 1,782 14 
Loans and leases, net of unearned income61,778 61,295 59,045 58,101 57,354 483 1 4,424 8 
Loans held for sale613 789 650 590 680 (176)(22)(67)(10)
Investment securities9,435 9,949 10,317 10,207 10,103 (514)(5)(668)(7)
Trading securities1,231 1,059 1,122 1,375 1,421 172 16 (190)(13)
Interest-bearing deposits with banks1,917 4,523 2,488 1,384 3,241 (2,606)(58)(1,324)(41)
Federal funds sold and securities purchased under agreements to resell416 282 309 482 690 134 48 (274)(40)
Total interest earning assets75,389 77,898 73,929 72,139 73,489 (2,509)(3)1,900 3 
Cash and due from banks1,022 1,137 987 1,061 1,193 (115)(10)(171)(14)
Goodwill and other intangible assets, net1,709 1,720 1,732 1,744 1,757 (11)(1)(48)(3)
Premises and equipment, net590 595 603 612 622 (5)(1)(32)(5)
Allowance for loan and lease losses(760)(737)(715)(685)(664)(23)(3)(96)(14)
Other assets4,584 4,458 4,193 4,082 3,903 126 3 681 17 
Total assets$82,533 $85,071 $80,729 $78,953 $80,299 $(85,071)(100)%$(80,299)(100)%
Liabilities and Shareholders' Equity:
Deposits:
Savings$25,590 $23,733 $21,346 $21,971 $22,800 $1,857 8 %$2,790 12 %
Time deposits7,783 8,279 3,777 2,887 2,671 (496)(6)5,112 NM
Other interest-bearing deposits15,817 14,620 15,184 15,165 14,730 1,197 8 1,087 7 
Total interest-bearing deposits49,190 46,632 40,306 40,023 40,202 2,558 5 8,988 22 
Trading liabilities366 174 144 335 383 192 110 (17)(5)
Short-term borrowings2,507 6,946 6,484 2,506 1,416 (4,439)(64)1,091 77 
Term borrowings1,157 1,156 1,605 1,597 1,597 1 — (440)(28)
Total interest-bearing liabilities53,220 54,908 48,540 44,461 43,598 (1,688)(3)9,622 22 
Noninterest-bearing deposits17,825 18,801 21,134 23,466 25,813 (976)(5)(7,988)(31)
Other liabilities2,694 2,403 2,161 2,480 2,605 291 12 89 3 
Total liabilities73,740 76,112 71,835 70,406 72,016 (2,372)(3)1,724 2 
Shareholders' Equity:
Preferred stock520 520 1,014 1,014 1,014 — — (494)(49)
Common stock349 349 336 336 335 — — 14 4 
Capital surplus5,337 5,324 4,863 4,840 4,812 13 — 525 11 
Retained earnings3,874 3,830 3,595 3,430 3,254 44 1 620 19 
Accumulated other comprehensive loss, net(1,582)(1,359)(1,208)(1,367)(1,427)(223)(16)(155)(11)
Combined shareholders' equity8,498 8,664 8,599 8,251 7,987 (166)(2)511 6 
Noncontrolling interest295 295 295 295 295 — — — — 
Total shareholders' equity8,794 8,960 8,895 8,547 8,283 (166)(2)511 6 
Total liabilities and shareholders' equity$82,533 $85,071 $80,729 $78,953 $80,299 $(2,538)(3)%$2,234 3 %
Memo:
Total deposits$67,015 $65,433 $61,440 $63,489 $66,014 $1,582 2 %$1,001 2 %
Loans to mortgage companies$2,237 $2,691 $2,040 $2,258 $2,710 $(454)(17)%$(473)(17)%
Unfunded Loan Commitments:
Commercial$22,063 $22,134 $21,844 $22,875 $23,778 $(72)— %$(1,715)(7)%
Consumer$4,432 $4,400 $4,404 $4,329 $4,248 $31 1 %$183 4 %
Numbers may not foot due to rounding. See footnote disclosures on page 20.
11

CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited 
     3Q23 Change vs.
(In millions)3Q232Q231Q234Q223Q222Q233Q22
Assets:$%$%
      
Loans and leases:      
Commercial, financial, and industrial (C&I)$33,042 $32,423 $31,558 $31,562 $31,120 $618 2 %$1,921 6 %
Commercial real estate13,999 13,628 13,290 13,095 12,926 372 3 1,073 8 
Total Commercial47,041 46,051 44,848 44,657 44,046 990 2 2,995 7 
Consumer real estate13,575 13,058 12,401 12,049 11,633 517 4 1,942 17 
Credit card and other5
816 815 825 858 864 1 — (47)(5)
Total Consumer14,391 13,873 13,226 12,907 12,496 518 4 1,895 15 
Loans and leases, net of unearned income61,432 59,924 58,074 57,564 56,543 1,508 3 4,889 9 
Loans held-for-sale782 731 596 597 761 51 7 21 3 
Investment securities9,811 10,192 10,263 10,132 10,315 (381)(4)(504)(5)
Trading securities1,099 1,110 1,284 1,311 1,342 (11)(1)(243)(18)
Interest-bearing deposits with banks2,867 3,110 1,468 2,618 6,341 (243)(8)(3,474)(55)
Federal funds sold and securities purchased under agreements to resell315 279 392 583 661 36 13 (346)(52)
Total interest earning assets76,306 75,346 72,076 72,805 75,963 960 1 343 — 
Cash and due from banks997 1,024 1,035 1,118 1,246 (27)(3)(249)(20)
Goodwill and other intangibles assets, net1,714 1,726 1,738 1,750 1,767 (12)(1)(53)(3)
Premises and equipment, net592 598 607 616 629 (6)(1)(37)(6)
Allowances for loan and lease losses(766)(728)(692)(675)(639)(38)(5)(127)(20)
Other assets4,377 4,338 4,076 3,907 3,585 39 1 792 22 
Total assets$83,220 $82,304 $78,841 $79,521 $82,551 $916 1 %$669 1 %
Liabilities and shareholders' equity:
Deposits:
Savings$24,963 $21,542 $21,824 $22,477 $23,569 $3,421 16 %$1,394 6 %
Time deposits8,087 5,520 3,336 2,720 2,759 2,567 47 5,328 NM
Other interest-bearing deposits15,329 14,719 14,790 14,658 15,102 610 4 227 2 
Total interest-bearing deposits48,379 41,781 39,950 39,855 41,431 6,598 16 6,948 17 
Trading liabilities276 216 324 353 372 60 28 (96)(26)
Short-term borrowings3,760 7,999 3,695 1,821 1,711 (4,239)(53)2,049 120 
Term borrowings1,161 1,428 1,602 1,597 1,598 (267)(19)(437)(27)
Total interest-bearing liabilities53,575 51,424 45,572 43,626 45,112 2,151 4 8,463 19 
Noninterest-bearing deposits18,145 19,664 22,274 25,021 26,701 (1,519)(8)(8,556)(32)
Other liabilities2,522 2,187 2,289 2,459 2,068 335 15 454 22 
Total liabilities74,242 73,275 70,134 71,106 73,882 967 1 360 — 
Shareholders' Equity:
Preferred stock520 986 1,014 1,014 1,014 (466)(47)(494)(49)
Common stock 349 337 336 336 335 12 4 14 4 
Capital surplus5,330 4,891 4,851 4,826 4,802 439 9 528 11 
Retained earnings3,861 3,759 3,518 3,358 3,175 102 3 686 22 
Accumulated other comprehensive loss, net(1,378)(1,241)(1,307)(1,414)(953)(137)(11)(425)(45)
Combined shareholders' equity8,683 8,734 8,411 8,119 8,373 (51)(1)310 4 
Noncontrolling interest295 295 295 295 295 — — — — 
Total shareholders' equity8,978 9,029 8,707 8,415 8,669 (51)(1)309 4 
Total liabilities and shareholders' equity$83,220 $82,304 $78,841 $79,521 $82,551 $916 1 %$669 1 %
Memo:
Total deposits$66,523 $61,445 $62,224 $64,876 $68,133 $5,078 8 %$(1,610)(2)%
Loans to mortgage companies$2,353 $2,262 $1,875 $2,299 $2,917 $90 4 %$(564)(19)%
Numbers may not foot due to rounding. See footnote disclosures on page 20.
12

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCE SHEET: YIELDS AND RATES
Quarterly, Unaudited 
   3Q23 Change vs.
3Q232Q231Q234Q223Q222Q233Q22
(In millions, except rates)Income/ExpenseRateIncome/ExpenseRateIncome/ExpenseRateIncome/ExpenseRateIncome/ExpenseRateIncome/ExpenseIncome/Expense
$%$%
Interest earning assets/Interest income:   
Loans and leases, net of unearned income:
Commercial$779 6.58 %$727 6.34 %$668 6.04 %$607 5.40 %$496 4.47 %$52 7 %$283 57 %
Consumer165 4.55 153 4.39 141 4.26 134 4.14 124 3.94 12 8 41 33 
Loans and leases, net of unearned income944 6.10 880 5.89 809 5.64 742 5.12 619 4.35 64 7 325 53 
Loans held-for-sale15 7.88 14 7.58 11 7.08 9 6.34 9 4.91 1 7 6 67 
Investment securities62 2.54 63 2.49 63 2.45 61 2.41 55 2.14 (1)(2)7 13 
Trading securities19 7.03 19 6.69 20 6.21 19 5.79 15 4.55 — — 4 27 
Interest-bearing deposits with banks39 5.34 40 5.13 17 4.60 24 3.61 34 2.15 (1)(3)5 15 
Federal funds sold and securities purchased under agreements4 5.06 3 4.85 4 4.35 5 3.48 2 2.04 1 33 2 100 
Interest income$1,084 5.64 %$1,019 5.42 %$923 5.18 %$860 4.70 %$737 3.86 %$65 6 %$347 47 %
Interest bearing liabilities/Interest expense:
Interest-bearing deposits:
Savings$219 3.48 %$141 2.63 %$96 1.79 %$67 1.19 %$18 0.31 %$78 55 %$201 NM
Time deposits89 4.35 49 3.56 16 1.96 6 0.90 2 0.50 40 82 87 NM
Other interest-bearing deposits102 2.64 75 2.06 58 1.59 39 1.05 21 0.56 27 36 81 NM
Total interest-bearing deposits409 3.36 265 2.55 171 1.73 112 1.12 42 0.41 144 54 367 NM
Trading liabilities3 4.20 2 3.82 3 3.83 3 3.59 3 3.03 1 50 — — 
Short-term borrowings46 4.80 99 4.94 38 4.16 13 2.85 7 2.22 (53)(54)39 NM
Term borrowings17 5.82 19 5.21 20 4.98 19 4.81 18 4.57 (2)(11)(1)(6)
Interest expense475 3.52 385 3.00 232 2.06 148 1.35 71 0.63 90 23 404 NM
Net interest income - tax equivalent basis609 2.12 635 2.42 691 3.11 712 3.35 666 3.23 (26)(4)(57)(9)
Fully taxable equivalent adjustment(4)1.05 (4)0.96 (4)0.76 (4)0.54 (4)0.25 — — — — 
Net interest income$605 3.17 %$631 3.38 %$688 3.88 %$709 3.89 %$662 3.48 %$(26)(4)%$(57)(9)%
Memo:
Total loan yield6.10 %5.89 %5.64 %5.12 %4.35 %
Total deposit cost2.44 %1.73 %1.11 %0.69 %0.25 %
Total funding cost2.63 %2.17 %1.38 %0.85 %0.39 %
Average loans and leases, net of unearned income$61,432 $59,924 $58,074 $57,564 $56,543 
Average deposits66,52361,44562,22464,87668,133
Average funded liabilities71,72071,08867,84668,64771,814
Net interest income and yields are adjusted to a fully taxable equivalent (“FTE”) basis assuming a statutory federal income tax of 21 percent and, where applicable, state income taxes.
Earning assets yields are expressed net of unearned income.
Loan yields include loan fees, cash basis interest income, and loans on nonaccrual status.
Numbers may not foot due to rounding.
See footnote disclosures on page 20.
13

CONSOLIDATED NONPERFORMING LOANS AND LEASES ("NPL")
Quarterly, Unaudited 
As of 3Q23 change vs.
(In millions, except ratio data)3Q232Q231Q234Q223Q222Q233Q22
$%$%
Nonperforming loans and leases
Commercial, financial, and industrial (C&I)$123 $184 $204 $153 $116 $(61)(33)%$6 6 %
Commercial real estate125 73 63 9 10 52 71 114 NM
Consumer real estate145 144 155 152 163 1 — (18)(11)
Credit card and other5
2 2 2 2 3 — (7)(1)(22)
Total nonperforming loans and leases$394 $402 $424 $316 $292 $(8)(2)%$102 35 %
Asset Quality Ratio
Nonperforming loans and leases to loans and leases
Commercial, financial, and industrial (C&I)0.37 %0.55 %0.63 %0.48 %0.37 %
Commercial real estate0.88 0.52 0.47 0.07 0.08 
Consumer real estate1.06 1.07 1.22 1.24 1.37 
Credit card and other5
0.26 0.27 0.29 0.27 0.31 
Total nonperforming loans and leases to loans and leases0.64 %0.66 %0.72 %0.54 %0.51 %
Numbers may not foot due to rounding.



CONSOLIDATED LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING
Quarterly, Unaudited
As of3Q23 change vs.
(In millions)3Q232Q231Q234Q223Q222Q233Q22
$%$%
Loans and leases 90 days or more past due and accruing
Commercial, financial, and industrial (C&I)$3 $1 $— $11 $1 $2 NM $1 109 %
Commercial real estate— — — — — — NM — NM
Consumer real estate12 8 7 18 17 4 47 (5)(31)
Credit card and other5
3 5 5 3 6 (2)(47)(3)(55)
Total loans and leases 90 days or more past due and accruing$17 $14 $12 $33 $24 $3 24 %$(7)(30)%
Numbers may not foot due to rounding.
14


CONSOLIDATED NET CHARGE-OFFS (RECOVERIES)
Quarterly, Unaudited
As of3Q23 change vs.
(In millions, except ratio data)3Q232Q231Q234Q223Q222Q233Q22
Charge-off, Recoveries and Related Ratios$%$%
Gross Charge-offs
Commercial, financial, and industrial (C&I) *$92 $19 $14 $24 $13 $73 NM $79 NM
Commercial real estate5 8 2 — 1 (4)(43)4 NM
Consumer real estate1 1 1 1 1 — (11)— (36)
Credit card and other5
7 5 5 7 7 2 51 — 3 
Total gross charge-offs$104 $33 $22 $32 $21 $71 NM $83 NM
Gross Recoveries
Commercial, financial, and industrial (C&I)$(5)$(5)$(2)$(3)$(2)$— (7)%$(3)NM
Commercial real estate— (1)— — — — 42 — NM
Consumer real estate(2)(3)(2)(2)(6)1 19 4 64 
Credit card and other5
(1)(1)(1)(1)(1)— 4 — 10 
Total gross recoveries$(9)$(9)$(6)$(6)$(9)$1 6 %$— 5 %
Net Charge-offs (Recoveries)
Commercial, financial, and industrial (C&I) *$86 $14 $12 $21 $11 $72 NM $75 NM
Commercial real estate4 8 2 — — (3)(43)4 NM
Consumer real estate(2)(2)(2)(2)(5)— 22 4 70 
Credit card and other5
6 3 4 6 5 2 70 — 6 
Total net charge-offs$95 $23 $16 $26 $12 $72 NM $83 NM
Annualized Net Charge-off (Recovery) Rates
Commercial, financial, and industrial (C&I) *1.04 %0.18 %0.15 %0.27 %0.14 %
Commercial real estate0.12 0.23 0.05 — 0.01 
Consumer real estate(0.05)(0.06)(0.05)(0.05)(0.17)
Credit card and other5
2.77 1.65 1.93 2.76 2.46 
Total loans and leases0.61 %0.16 %0.11 %0.18 %0.08 %
Numbers may not foot due to rounding.
•3Q23 increase driven by a single credit from a company in bankruptcy.
15


CONSOLIDATED ALLOWANCE FOR LOAN AND LEASE LOSSES AND RESERVE FOR UNFUNDED COMMITMENTS
Quarterly, Unaudited
As of3Q23 Change vs.
(In millions)3Q232Q231Q234Q223Q222Q233Q22
Summary of Changes in the Components of the Allowance For Credit Losses$%$%
Allowance for loan and lease losses - beginning$737 $715 $685 $664 $624 $22 3 %$113 18 %
Cumulative effect of change in accounting principle:
Commercial, financial, and industrial (C&I)— — 1 — — — NM — NM
Commercial real estate— — — — — — NM — NM
Consumer real estate— — (7)— — — NM — NM
Credit card and other5
— — — — — — NM — NM
Total cumulative effect of change in accounting principles— — (6)— — — NM — NM
Allowance for loan and lease losses - beginning, adjusted$737 $715 $679 $664 $624 $22 3 %$113 18 %
Charge-offs:
Commercial, financial, and industrial (C&I) *(92)(19)(14)(24)(13)(73)NM (79)NM
Commercial real estate(5)(8)(2)— (1)4 43 (4)NM
Consumer real estate(1)(1)(1)(1)(1)— 11 — 36 
Credit card and other5
(7)(5)(5)(7)(7)(2)(51)— (3)
Total charge-offs(104)(33)(22)(32)(21)(71)NM (83)NM
Recoveries:
Commercial, financial, and industrial (C&I)5 5 2 3 2 — 7 3 NM
Commercial real estate— 1 — — — — (42)— NM
Consumer real estate2 3 2 2 6 (1)(19)(4)(65)
Credit card and other5
1 1 1 1 1 — (4)— (10)
Total Recoveries9 9 6 6 9 (1)(6)— (3)
Provision for loan and lease losses:
Commercial, financial, and industrial (C&I) *96 15 27 35 32 81 NM 65 NM
Commercial real estate14 16 6 (2)8 (2)(15)6 79 
Consumer real estate5 10 15 5 5 (6)(54)(1)(8)
Credit card and other5
3 3 4 9 7 — 4 (4)(58)
Total provision for loan and lease losses:
118 45 52 46 52 73 NM 66 127 
Allowance for loan and lease losses - ending$760 $737 $715 $685 $664 $23 3 %$96 14 %
Reserve for unfunded commitments - beginning$90 $85 $87 $88 $80 $5 6 %$10 12 %
Cumulative effect of change in accounting principle— — — — — — NM — NM
Acquired reserve for unfunded commitments— — — — — — NM — NM
Provision for unfunded commitments(8)5 (2)(1)8 (13)NM (16)NM
Reserve for unfunded commitments - ending$82 $90 $85 $87 $88 $(8)(9)%$(6)(7)%
Total allowance for credit losses- ending$842 $827 $800 $771 $752 $15 2 %$90 12 %
Numbers may not foot due to rounding.
•3Q23 increase driven by a single credit from a company in bankruptcy.
16


CONSOLIDATED ASSET QUALITY RATIOS - ALLOWANCE FOR LOAN AND LEASE LOSSES
Quarterly, Unaudited
As of
3Q232Q231Q234Q223Q22
Allowance for loans and lease losses to loans and leases
Commercial, financial, and industrial (C&I)1.01 %0.98 %1.01 %0.97 %0.93 %
Commercial real estate1.19 %1.14 %1.12 %1.10 %1.14 %
Consumer real estate1.67 %1.64 %1.65 %1.63 %1.63 %
Credit card and other5
3.48 %3.79 %3.86 %3.72 %3.32 %
Total allowance for loans and lease losses to loans and leases1.23 %1.20 %1.21 %1.18 %1.16 %
Allowance for loans and lease losses to nonperforming loans and leases
Commercial, financial, and industrial (C&I)273 %177 %159 %202 %253 %
Commercial real estate135 %219 %238 %1,554 %1,422 %
Consumer real estate158 %154 %135 %131 %119 %
Credit card and other5
1,364 %1,384 %1,439 %1,364 %1,070 %
Total allowance for loans and lease losses to nonperforming loans and leases193 %183 %169 %217 %228 %
Allowance for credit losses ratios
Total allowance for credit losses to loans and leases4
1.36 %1.35 %1.35 %1.33 %1.31 %
Total allowance for credit losses to nonperforming loans and leases4
214 %206 %189 %244 %258 %
See footnote disclosures on page 20.
17

REGIONAL BANKING
Quarterly, Unaudited 
     3Q23 Change vs.
 3Q232Q231Q234Q223Q222Q233Q22
$/bp%$/bp%
Income Statement (millions)      
Net interest income$583 $612 $586 $544 $518 $(29)(5)%$65 13 %
Noninterest income109 109 107 107 110 — — (1)(1)
Total revenue692 721 693 650 627 (29)(4)65 10 
Noninterest expense318 321 320 321 302 (3)(1)16 5 
Pre-provision net revenue3
374 399 373 330 326 (25)(6)48 15 
Provision for credit losses104 43 41 30 43 61 142 61 142
Income before income tax expense270 356 331 300 283 (86)(24)(13)(5)
Income tax expense63 84 78 70 66 (21)(25)(3)(5)
Net income$207 $272 $253 $229 $216 $(65)(24)%$(9)(4)%
Average Balances (billions)
Total loans and leases$43.9 $42.9 $41.8 $41.1 $40.1 $1.0 2 %$3.8 9 %
Interest-earning assets43.9 42.9 41.8 41.1 40.1 1.0 2 3.8 9 
Total assets46.7 45.6 44.5 43.8 42.8 1.1 2 3.9 9 
Total deposits58.8 55.9 57.8 59.6 61.9 2.9 5 (3.1)(5)
Key Metrics
Net interest margin6
5.30 %5.75 %5.71 %5.27 %5.15 %(45)bp15 bp
Efficiency ratio 45.97 %44.59 %46.21 %49.30 %48.11 %138 bp(214)bp
Loans-to-deposits ratio (period-end balances)74.40 %74.98 %73.95 %70.81 %66.77 %(58)bp763 bp
Loans-to-deposits ratio (average-end balances)74.78 %76.72 %72.39 %69.02 %64.78 %(194)bp1,000 bp
Return on average assets (annualized)1.76 %2.39 %2.31 %2.08 %2.01 %(63)bp(25)bp
Return on allocated equity7
22.19 %29.55 %27.96 %25.21 %24.14 %(736)bp(195)bp
Financial center locations418 417 417 417 417 1 — %1 — %
Numbers may not add to total due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 20.

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


SPECIALTY BANKING
Quarterly, Unaudited 
     3Q23 Change vs.
 3Q232Q231Q234Q223Q222Q233Q22
$/bp%$/bp%
Income Statement (millions)      
Net interest income$135 $130 $125 $134 $138 $5 4 %$(3)(2)%
Noninterest income46 48 53 47 64 (2)(4)(18)(28)
Total revenue181 177 179 181 203 4 2 (22)(11)
Noninterest expense89 88 93 93 105 1 1 (16)(15)
Pre-provision net revenue3
92 89 86 87 97 3 3 (5)(5)
Provision for credit losses6 10 10 18 17 (4)(40)(11)(65)
Income before income tax expense87 79 76 70 80 8 10 7 9 
Income tax expense21 19 18 17 19 2 11 2 11 
Net income$66 $60 $57 $53 $61 $6 10 %$5 8 %
Average Balances (billions)
Total loans and leases$17.0 $16.5 $15.8 $15.9 $15.9 $0.5 3 %$1.1 7 %
Interest-earning assets19.3 18.7 18.1 18.4 18.6 0.6 3 0.7 4 
Total assets20.7 20.0 19.4 19.6 19.7 0.7 3 1.0 5 
Total deposits3.3 3.1 3.6 4.3 5.2 0.2 6 (1.9)(36)
Key Metrics
Fixed income product average daily revenue (thousands)$301 $348 $437 $403 $524 $(47)(14)%$(223)(43)%
Net interest margin6
2.78 %2.77 %2.80 %2.89 %2.96 %1 bp(18)bp
Efficiency ratio 49.10 %49.60 %52.19 %51.69 %52.03 %(50)bp(293)bp
Loans-to-deposits ratio (period-end balances)509 %559 %504 %426 %378 %(5,000)bp13,096 bp
Loans-to-deposits ratio (average-end balances)517 %537 %440 %370 %307 %(2,000)bp20,983 bp
Return on average assets (annualized)1.26 %1.20 %1.20 %1.06 %1.22 %6 bp4 bp
Return on allocated equity7
15.40 %14.92 %14.69 %13.05 %14.74 %48 bp66 bp
Numbers may not add to total due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 20.

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

CORPORATE
Quarterly, Unaudited
 3Q23 Change vs.
 3Q232Q231Q234Q223Q222Q233Q22
$%$%
Income Statement (millions)
Net interest income/(expense)$(113)$(111)$(24)$31 $6 $(2)(2)%$(119)NM
Noninterest income18 244 11 21 39 (226)(93)(21)(54)
Total revenues(95)133 (13)52 45 (228)NM (140)NM
Noninterest expense67 146 64 90 61 (79)(54)6 10 
Pre-provision net revenue3
(162)(13)(77)(38)(17)(149)NM (145)NM
Provision for credit losses— (4)(1)(3)— 4 100 — NM
Income before income tax expense(162)(10)(76)(35)(17)(152)NM (145)NM
Income tax expense (benefit)(32)(7)(21)(23)(8)(25)NM (24)NM
Net income/(loss)$(130)$(3)$(55)$(12)$(9)$(127)NM $(121)NM
Average Balance Sheet (billions)    
Interest bearing assets$13.0 $13.7 $12.1 $13.3 $17.3 $(0.7)(5)%$(4.3)(25)%
Total assets15.9 16.7 14.9 16.0 20.0 (0.8)(5)(4.1)(20)
Numbers may not add to total due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.


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


FOOTNOTES
1 Taxable equivalent interest income and interest expense are non-GAAP measures and reconcile to net interest income (GAAP) in the table.
2 Occupancy and Equipment expense includes Computer Software Expense.
3 Pre-provision net revenue is a non-GAAP measure and is reconciled to income before income taxes (GAAP) in the table.
4 Represents a non-GAAP measure and is reconciled to the nearest GAAP measure in the non-GAAP to GAAP reconciliations beginning on page 21.
5 Credit card and other includes $187.1 million of commercial credit card balances at September 30, 2023.
6 Net interest margin is computed using total NII adjusted for FTE assuming a statutory federal income tax rate of 21 percent, and, where applicable state taxes.
7 Segment equity is allocated based on an internal allocation methodology.
8 2Q23 includes 19.7 million share impact of Series G convertible securities issued in connection with TD transaction based on the final conversion rate; 1Q23, 4Q22 and 3Q22 include 27.5 million shares based on the original maximum conversion rate.
9 3Q23 increase driven by the conversion of Series G convertible securities issued in connection with TD transaction.
20

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
($s in millions, except per share data)3Q232Q231Q234Q223Q22
Tangible Common Equity (Non-GAAP)    
(A) Total equity (GAAP)$8,794 $8,960 $8,895 $8,547 $8,283 
Less: Noncontrolling interest (a)295 295 295 295 295 
Less: Preferred stock (a)520 520 1,014 1,014 1,014 
(B) Total common equity$7,978 $8,144 $7,586 $7,238 $6,974 
Less: Intangible assets (GAAP) (b)1,709 1,720 1,732 1,744 1,757 
(C) Tangible common equity (Non-GAAP)$6,270 $6,424 $5,853 $5,494 $5,217 
Tangible Assets (Non-GAAP) 
(D) Total assets (GAAP)$82,533 $85,071 $80,729 $78,953 $80,299 
Less: Intangible assets (GAAP) (b)1,709 1,720 1,732 1,744 1,757 
(E) Tangible assets (Non-GAAP)$80,825 $83,351 $78,997 $77,209 $78,542 
Period-end Shares Outstanding     
(F) Period-end shares outstanding559 559 538 537 537 
Ratios
(A)/(D) Total equity to total assets (GAAP)10.65 %10.53 %11.02 %10.83 %10.32 %
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)7.76 %7.71 %7.41 %7.12 %6.64 %
(B)/(F) Book value per common share (GAAP)$14.28 $14.58 $14.11 $13.48 $12.99 
(C)/(F) Tangible book value per common share (Non-GAAP)$11.22 $11.50 $10.89 $10.23 $9.72 
(a)     Included in Total equity on the Consolidated Balance Sheet.
(b)     Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.


21

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
($s in millions, except per share data)3Q232Q231Q234Q223Q22
Adjusted Diluted EPS
Net income available to common shareholders ("NIAC") (GAAP)a$129 $317 $243 $258 $257 
Plus Tax effected notable items (Non-GAAP) (a)$20 $(98)$16 $34 $(5)
Adjusted net income available to common shareholders (Non-GAAP)b$150 $219 $259 $293 $252 
Diluted Shares (GAAP)8
c561 561 572 572 570 
Diluted EPS (GAAP)a/c$0.23 $0.56 $0.43 $0.45 $0.45 
Adjusted diluted EPS (Non-GAAP)b/c$0.27 $0.39 $0.45 $0.51 $0.44 
Adjusted Net Income ("NI") and Adjusted Return on Assets ("ROA")
Net Income ("NI") (GAAP)$142 $329 $256 $270 $268 
Plus Tax effected notable items (Non-GAAP) (a)$20 $(98)$16 $34 $(5)
Adjusted NI (Non-GAAP)$163 $231 $271 $304 $263 
NI (annualized) (GAAP)d$565 $1,320 $1,037 $1,070 $1,063 
Adjusted NI (annualized) (Non-GAAP)e$646 $928 $1,100 $1,206 $1,045 
Average assets (GAAP)f$83,220 $82,304 $78,841 $79,521 $82,551 
ROA (GAAP)d/f0.68 %1.60 %1.32 %1.35 %1.29 %
Adjusted ROA (Non-GAAP)e/f0.78 %1.13 %1.40 %1.52 %1.27 %
Return on Average Common Equity ("ROCE")/ Return on Average Tangible Common Equity ("ROTCE")/ Adjusted ROTCE
Net income available to common shareholders ("NIAC") (annualized) (GAAP)g$513 $1,270 $987 $1,025 $1,020 
Adjusted Net income available to common shareholders (annualized) (Non-GAAP)h$594 $878 $1,050 $1,161 $1,001 
Average Common Equity (GAAP)i$8,163 $7,747 $7,398 $7,106 $7,360 
Intangible Assets (GAAP) (b)1,714 1,726 1,738 1,750 1,767 
Adjusted Average Tangible Common Equity (Non-GAAP)j$6,448 $6,021 $5,659 $5,356 $5,593 
ROCE (GAAP)g/i6.28 %16.40 %13.34 %14.42 %13.85 %
ROTCE (Non-GAAP)g/j7.95 %21.10 %17.43 %19.14 %18.23 %
Adjusted ROTCE (Non-GAAP)h/j9.21 %14.59 %18.55 %21.68 %17.89 %
(a)     Amounts adjusted for notable items as detailed on page 9.
(b)     Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.


22

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
(In millions)3Q232Q231Q234Q223Q22
Adjusted Noninterest Income as a % of Total Revenue
Noninterest income (GAAP)k$173 $400 $171 $174 $213 
Plus notable items (GAAP) (a)— (225)— (1)(32)
Adjusted noninterest income (Non-GAAP)l$173 $175 $171 $173 $181 
Revenue (GAAP)m$778 $1,031 $859 $882 $875 
Taxable-equivalent adjustment4 4 4 4 4 
Revenue- Taxable-equivalent (Non-GAAP)782 1,035 863 886 878 
Plus notable items (GAAP) (a)— (225)— (1)(32)
Adjusted revenue (Non-GAAP)n$782 $810 $863 $885 $847 
Noninterest income as a % of total revenue (GAAP)k/m22.27 %38.82 %19.94 %19.68 %24.30 %
Adjusted noninterest income as a % of total revenue (Non-GAAP)l/n22.16 %21.63 %19.85 %19.55 %21.37 %
Adjusted Efficiency Ratio
Noninterest expense (GAAP)o$474 $555 $478 $503 $468 
Plus notable items (GAAP) (a)(10)(95)(21)(46)(25)
Adjusted noninterest expense (Non-GAAP)p$465 $461 $457 $458 $444 
Revenue (GAAP)q$778 $1,031 $859 $882 $875 
Taxable-equivalent adjustment4 4 4 4 4 
Revenue- Taxable-equivalent (Non-GAAP)782 1,035 863 886 878 
Plus notable items (GAAP) (a)— (225)— (1)(32)
Adjusted revenue (Non-GAAP)r$782 $810 $863 $885 $847 
Efficiency ratio (GAAP)o/q60.92 %53.87 %55.65 %57.07 %53.56 %
Adjusted efficiency ratio (Non-GAAP)p/r59.39 %56.90 %52.95 %51.70 %52.42 %
(a)     Amounts adjusted for notable items as detailed on page 9.
(b)     Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.
23

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
($s in millions)
Period-endAverage
3Q232Q233Q23 vs. 2Q233Q232Q233Q23 vs. 2Q23
Loans excluding LMC
Total Loans (GAAP)$61,778 $61,295 $483 1 %$61,432 $59,924 $1,508 3 %
LMC (GAAP)2,2372,691(454)(17)%2,3532,26290 4 %
Total Loans excl. LMC (Non-GAAP)59,541 58,604 937 2 %59,079 57,662 1,417 2 %
Total Consumer (GAAP)14,49414,289205 1 %14,39113,873518 4 %
Total Commercial excl. LMC (Non-GAAP)45,047 44,315 732 2 %44,688 43,789 899 2 %
Total CRE (GAAP)14,121 13,891 230 2 %13,999 13,628 371 3 %
Total C&I excl. LMC (Non-GAAP)$30,926 $30,424 $502 2 %$30,689 $30,161 $528 2 %
Numbers may not foot due to rounding.




3Q232Q231Q234Q223Q22
Allowance for credit losses to loans and leases and Allowance for credit losses to nonperforming loans and leases
Allowance for loan and lease losses (GAAP)A$760 $737 $715 $685 $664 
Reserve for unfunded commitments (GAAP)82 90 85 87 88 
Allowance for credit losses (Non-GAAP)B$842 $827 $800 $771 $752 
Loans and leases (GAAP)C$61,778 $61,295 $59,045 $58,101 $57,354 
Nonaccrual loans and leases (GAAP)D$394 $402 $424 $316 $292 
Allowance for loans and lease losses to loans and leases (GAAP)A/C1.23 %1.20 %1.21 %1.18 %1.16 %
Allowance for credit losses to loans and leases (Non-GAAP)B/C1.36 %1.35 %1.35 %1.33 %1.31 %
Allowance for loans and lease losses to nonperforming loans and leases (GAAP)A/D193 %183 %169 %217 %228 %
Allowance for credit losses to nonperforming loans and leases (Non-GAAP)B/D214 %206 %189 %244 %258 %
Numbers may not foot due to rounding.
24


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

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

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

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

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

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

25