First Horizon 8K 's Momentum Continues with Strong Second Quarter 2024 Results | FHN 17 Jul 24

First Horizon Corporation's Momentum Continues with Strong Second Quarter 2024 Results

Net Income Available to Common Shareholders of $184 Million or EPS of $0.34;

$195 Million or $0.36 on an Adjusted Basis, up $0.01 from prior quarter*

2Q24 ROTCE of 11.3% and Adjusted ROTCE of 12.0% with Tangible Book Value per Share of $12.22, up $0.06 QoQ*

MEMPHIS, TN (July 17, 2024) – First Horizon Corporation (NYSE: FHN or “First Horizon”) today reported second quarter net income available to common ("NIAC") shareholders of $184 million or earnings per share of $0.34, compared with first quarter 2024 net income available to common of $184 million or earnings per share of $0.33. Second quarter 2024 results were reduced by a net $11 million after-tax or $0.02 per share of notable items compared with $12 million or $0.02 per share in first quarter 2024. Excluding notable items, adjusted second quarter 2024 NIAC was $195 million or $0.36 per share compared to $195 million or $0.35 per share in first quarter 2024.

“We are pleased to report strong second quarter results. Our banking franchise delivered a solid quarter with net interest income and banking fee growth,” said Chairman, President and Chief Executive Officer Bryan Jordan. “Our balance sheet continues to perform well, which combined with strong earnings, enabled the return of $212 million of capital to shareholders this quarter.”

Jordan continued, “We continue to make significant progress on our strategic investments while identifying operational efficiencies that enhance the client experience and our financial performance. I am proud of the continued progress we have made in strengthening our competitive position and remain confident in our ability to continue to deliver value to our shareholders, associates, clients, and communities.”

Notable Items


Notable Items
Quarterly, Unaudited ($ in millions, except per share data)	2Q24		1Q24		2Q23
Summary of Notable Items:
Gain on merger termination	$	—	$	—	$	225
Net merger/acquisition/transaction-related items	—		—		(30)




FDIC special assessment (other noninterest expense)	(2)		(10)		—
Other notable expenses	(3)		(5)		(65)
Total notable items (pre-tax)	$	(5)	$	(15)	$	130
Total notable items (after-tax)	$	(11)	$	(12)	$	98

Numbers may not foot due to rounding.

Second quarter pre-tax notable items include an FDIC special assessment of $2 million and $3 million of restructuring costs. Second quarter after-tax notable items include $7 million of deemed dividends on the redemption of $100 million par value of Series D Preferred Stock.

*References to "Adjusted" results exclude notable items and, along with ROTCE and certain financial measures, are Non-GAAP Financial Measures. All references to loans include leases. All references to earnings per share are based on diluted shares. Please see page 4 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 20.


SUMMARY RESULTS
Quarterly, Unaudited

										2Q24 Change vs.
($s in millions, except per share and balance sheet data)	2Q24			1Q24			2Q23			1Q24					2Q23
										$/bp			%		$/bp			%
Income Statement
Interest income - taxable equivalent1	$	1,097		$	1,076		$	1,019		$	21		2	%	$	78		8	%
Interest expense- taxable equivalent1	464			448			385			16			4		79			21
Net interest income- taxable equivalent	633			628			635			5			1		(2)			—
Less: Taxable-equivalent adjustment	4			4			4			—			10		—			6
Net interest income	629			625			631			4			1		(2)			—
Noninterest income	186			194			400			(8)			(4)		(214)			(54)
Total revenue	815			819			1,031			(4)			(1)		(216)			(21)
Noninterest expense	500			515			555			(15)			(3)		(55)			(10)
Pre-provision net revenue3	315			304			475			11			4		(161)			(34)
Provision for credit losses	55			50			50			5			10		5			10
Income before income taxes	260			254			425			6			2		(166)			(39)
Provision for income taxes	56			57			96			(1)			(2)		(40)			(42)
Net income	204			197			329			7			4		(125)			(38)
Net income attributable to noncontrolling interest	5			5			5			—			1		—			7
Net income attributable to controlling interest	199			192			325			7			4		(126)			(39)
Preferred stock dividends	15			8			8			7			85		7			94
Net income available to common shareholders	$	184		$	184		$	317		$	—		—	%	$	(133)		(42)	%

Adjusted net income4	$	208		$	208		$	231		$	—		—	%	$	(23)		(10)	%
Adjusted net income available to common shareholders4	$	195		$	195		$	219		$	—		—	%	$	(24)		(11)	%
Common stock information
EPS	$	0.34		$	0.33		$	0.56		$	0.01		2	%	$	(0.22)		(39)	%
Adjusted EPS4	$	0.36		$	0.35		$	0.39		$	0.01		2	%	$	(0.03)		(9)	%


Diluted shares8	547			558			561			(11)			(2)	%	(14)			(2)	%
Key performance metrics
Net interest margin6	3.38		%	3.37		%	3.38		%	1		bp			—		bp

Efficiency ratio	61.44			62.92			53.89			(148)					755
Adjusted efficiency ratio4	60.47			60.78			56.92			(31)					355
Effective income tax rate	21.49			22.48			22.63			(99)					(114)
Return on average assets	1.00			0.97			1.60			3					(60)
Adjusted return on average assets4	1.02			1.03			1.13			(1)					(11)
Return on average common equity (“ROCE")	9.0			8.8			16.4			22					(742)

Return on average tangible common equity (“ROTCE”)4	11.3			11.0			21.1			34					(981)
Adjusted ROTCE4	12.0			11.6			14.6			34					(260)
Noninterest income as a % of total revenue	22.75			23.72			38.80			(97)					(1,605)
Adjusted noninterest income as a % of total revenue4	22.64		%	23.61		%	21.60		%	(97)		bp			104		bp
Balance Sheet (billions)
Average loans	$	62.0		$	61.2		$	59.9		$	0.9		1	%	$	2.1		4	%
Average deposits	65.0			65.4			61.4			(0.4)			(1)		3.5			6
Average assets	81.7			81.2			82.3			0.5			1		(0.6)			(1)
Average common equity	$	8.2		$	8.4		$	7.7		$	(0.2)		(2)	%	$	0.5		6	%
Asset Quality Highlights

Allowance for credit losses to loans and leases4	1.41		%	1.40		%	1.35		%	—		bp			7		bp

Nonperforming loan and leases ratio	0.91		%	0.82		%	0.66		%	9		bp			25		bp
Net charge-off ratio	0.22		%	0.27		%	0.16		%	(5)		bp			6		bp
Net Charge-offs	$	34		$	40		$	23		$	(6)		(16)	%	$	11		46	%
Capital Ratio Highlights (current quarter is an estimate)



Common Equity Tier 1	11.0		%	11.3		%	11.1		%	(26)		bp			(3)		bp
Tier 1	12.0			12.3			12.1			(27)					(4)
Total Capital	13.7			13.9			13.6			(26)					9
Tier 1 leverage	10.6		%	10.8		%	10.5		%	(21)		bp			9		bp

Numbers may not foot due to rounding.

See footnote disclosures on page 19.

Second Quarter 2024 versus First Quarter 2024

Net interest income

Net interest income of $629 million increased $4 million and net interest margin of 3.38% increased 1 basis point from the benefit of higher loan volumes and yields, partially offset by continued mix shift within interest-bearing deposits products, higher use of wholesale funds, and lower average noninterest-bearing deposits.

Noninterest income

Noninterest income of $186 million decreased $8 million, with higher traditional banking fees partially offsetting a $12 million decrease in fixed income production, which was driven by a reduction in the market's rate cut expectations and lower portfolio restructuring activity.

Noninterest expense

Noninterest expense of $500 million declined $15 million from the prior quarter. Second quarter notable items included a $2 million FDIC special assessment and $3 million of restructuring costs, which are down from $10 million and $5 million respectively in first quarter 2024. Adjusted noninterest expense of $495 million decreased $5 million as reductions in incentives and deferred compensation were partially offset by increases in outside services expense associated with deposit marketing campaigns and third-party services for strategic investments.

Loans and leases

Average loan and lease balances of $62.0 billion were up $0.9 billion or 1% compared to the prior quarter, while period-end balances of $62.8 billion increased $1.0 billion or 2% from first quarter 2024. The spring home-buying season drove increases in loans to mortgage companies (LMC) and continued fund ups in multi-family within commercial real estate also contributed to the growth. Loan yields of 6.34% improved 6 basis points from wider spreads on new and renewing loans, as well as continued repricing of fixed rate cash flows.

Deposits

Average deposits of $65.0 billion decreased $0.4 billion or 1% from first quarter 2024, largely driven by lower noninterest-bearing deposits, which declined early in the first quarter before stabilizing. Period-end deposits of $64.8 billion decreased $0.9 billion or 1% from the prior quarter, including a $0.7 billion decline in public funds, which was impacted by seasonality. Total deposit costs and interest-bearing deposit costs both increased 2 basis points from the prior quarter to 2.47% and 3.30%, respectively.

Asset quality

Provision expense of $55 million increased $5 million from the previous quarter. Net charge-offs were $34 million or 22 basis points. Nonperforming loans of $574 million increased $69 million, with declines in C&I more than offset by increases in CRE. The ACL to loans ratio of 1.41% increased slightly from 1.40% in first quarter 2024. Modest grade migration continued in the second quarter, but overall credit performance is stable after normalizing from a prolonged benign environment.

Capital

Achieved the near-term CET1 ratio target of 11.0%, down from 11.3% in first quarter 2024 as $212 million of excess capital was returned to shareholders through the share repurchase program. FHN repurchased 13.9 million shares of common stock in second quarter 2024 at a weighted average price of $15.26. Year-to-date, FHN repurchased 25 million shares or $366 million of common stock under the $650 million share repurchase program authorized in 1Q24.

Income taxes

The effective tax rate and the adjusted effective tax rate for second quarter 2024 was 21.5% compared with 22.5% in first quarter 2024.

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; and in the forepart, and in Item 1A of Part II, of FHN’s Quarterly Report(s) on Form 10-Q filed after that Annual Report.

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"), return on average tangible common equity (“ROTCE”), tangible common equity (“TCE”) to tangible assets (“TA”), tangible book value ("TBV") per common share, and various consolidated and segment results and performance measures and ratios adjusted for notable items.

Presentation of regulatory measures, even those which are not GAAP, provide a meaningful base for comparability to other financial institutions subject to the same regulations as FHN, as demonstrated by their use by banking regulators in reviewing capital adequacy of financial institutions. Although not GAAP terms, these regulatory measures are not considered “non-GAAP” under U.S. financial reporting rules as long as their presentation conforms to regulatory standards. Regulatory measures used in this financial supplement include: common equity tier 1 capital ("CET1"), generally defined as common equity less goodwill, other intangibles, and certain other required regulatory deductions; tier 1 capital, generally defined as the sum of core capital (including common 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 20.

Conference Call Information

Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on July 17, 2024 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 463278. 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 July 17 until midnight CT on July 31, 2024. To listen to the replay, dial 1-866-813-9403 (U.S. callers); the access code is 610953. A replay of the webcast will also be available on our website on July 17 and will be archived on the site for one year.

First Horizon Corp. (NYSE: FHN), with $82.2 billion in assets as of June 30, 2024, 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 - Natalie.Flanders@firsthorizon.com

Media Relations - Beth.Ardoin@firsthorizon.com


CONSOLIDATED INCOME STATEMENT
Quarterly, Unaudited

																2Q24 Change vs.
($s in millions, except per share data)	2Q24			1Q24			4Q23			3Q23			2Q23			1Q24				2Q23
																$		%		$		%
Interest income - taxable equivalent1	$	1,097		$	1,076		$	1,090		$	1,084		$	1,019		$	21	2	%	$	78	8	%
Interest expense- taxable equivalent1	464			448			469			475			385			16		4		79		21
Net interest income- taxable equivalent	633			628			621			609			635			5		1		(2)		—
Less: Taxable-equivalent adjustment	4			4			4			4			4			—		10		—		6
Net interest income	629			625			617			605			631			4		1		(2)		—
Noninterest income:
Fixed income	40			52			37			28			30			(12)		(23)		10		34
Mortgage banking	10			9			5			7			6			2		19		4		66
Brokerage, trust, and insurance	38			36			36			34			35			2		6		3		10
Service charges and fees	58			57			59			60			59			1		2		(1)		—
Card and digital banking fees	20			19			16			20			21			1		7		(1)		(5)
Deferred compensation income	3			9			6			—			8			(6)		(66)		(5)		(63)
Gain on merger termination	—			—			—			—			225			—		NM		(225)		(100)
Other noninterest income	17			14			23			25			17			3		18		(1)		(3)
Total noninterest income	186			194			183			173			400			(8)		(4)		(214)		(54)
Total revenue	815			819			800			778			1,031			(4)		(1)		(216)		(21)
Noninterest expense:
Personnel expense:
Salaries and benefits	198			200			190			188			191			(2)		(1)		7		4
Incentives and commissions	79			92			82			77			86			(13)		(14)		(8)		(9)
Deferred compensation expense	3			9			7			—			8			(6)		(67)		(5)		(62)
Total personnel expense	279			301			279			266			285			(21)		(7)		(5)		(2)
Occupancy and equipment2	72			72			71			67			68			—		—		4		5
Outside services	78			65			84			69			71			13		19		7		10
Amortization of intangible assets	11			11			12			12			12			—		—		(1)		(8)
Other noninterest expense	60			67			127			60			119			(6)		(10)		(59)		(50)
Total noninterest expense	500			515			572			474			555			(15)		(3)		(55)		(10)
Pre-provision net revenue3	315			304			227			304			475			11		4		(161)		(34)
Provision for credit losses	55			50			50			110			50			5		10		5		10
Income before income taxes	260			254			177			194			425			6		2		(166)		(39)
Provision for income taxes	56			57			(11)			52			96			(1)		(2)		(40)		(42)
Net income	204			197			188			142			329			7		4		(125)		(38)
Net income attributable to noncontrolling interest	5			5			5			5			5			—		1		—		7
Net income attributable to controlling interest	199			192			183			137			325			7		4		(126)		(39)
Preferred stock dividends	15			8			8			8			8			7		85		7		94
Net income available to common shareholders	$	184		$	184		$	175		$	129		$	317		$	—	—	%	$	(133)	(42)	%
Common Share Data
EPS	$	0.34		$	0.33		$	0.31		$	0.23		$	0.59		$	0.01	2	%	$	(0.25)	(42)	%
Basic shares	544			555			559			559			539			(11)		(2)		5		1
Diluted EPS	$	0.34		$	0.33		$	0.31		$	0.23		$	0.56		$	0.01	2		$	(0.22)	(39)
Diluted shares8	547			558			561			561			561			(11)		(2)	%	(14)		(2)	%

Effective tax rate	21.5		%	22.5		%	(6.2)		%	26.7		%	22.6		%

Numbers may not foot due to rounding. See footnote disclosures on page 19.


ADJUSTED4 FINANCIAL DATA - SEE NOTABLE ITEMS ON PAGE 8
Quarterly, Unaudited


																2Q24 Change vs.
($s in millions, except per share data)	2Q24			1Q24			4Q23			3Q23			2Q23			1Q24				2Q23
																$		%		$		%


Net interest income (FTE)1	$	633		$	628		$	621		$	609		$	635		$	5	1	%	$	(2)	—	%
Adjusted noninterest income:
Fixed income	40			52			37			28			30			(12)		(23)		10		34
Mortgage banking	10			9			5			7			6			2		19		4		66
Brokerage, trust, and insurance	38			36			36			34			35			2		6		3		10
Service charges and fees	58			57			59			60			59			1		2		(1)		—
Card and digital banking fees	20			19			16			20			21			1		7		(1)		(5)
Deferred compensation income	3			9			6			—			8			(6)		(66)		(5)		(63)
Gain on merger termination	—			—			—			—			—			—		NM		—		NM
Adjusted other noninterest income	17			14			20			25			17			3		18		(1)		(3)
Adjusted total noninterest income	$	186		$	194		$	179		$	173		$	175		$	(8)	(4)	%	$	11	6	%
Total revenue (FTE)1	$	819		$	823		$	800		$	782		$	810		$	(4)	—	%	$	9	1	%

Adjusted noninterest expense:
Adjusted personnel expense:
Adjusted salaries and benefits	$	198		$	199		$	190		$	188		$	187		$	(1)	(1)	%	$	11	6	%
Adjusted Incentives and commissions	78			87			80			68			65			(9)		(10)		13		20
Deferred compensation expense	3			9			7			—			8			(6)		(67)		(5)		(62)
Adjusted total personnel expense	279			295			277			256			260			(16)		(5)		19		7
Adjusted occupancy and equipment2	72			72			71			67			68			—		—		4		5
Outside services	75			65			84			69			68			10		15		7		10
Amortization of intangible assets	11			11			12			12			12			—		—		(1)		(8)
Adjusted other noninterest expense	58			57			59			60			53			1		2		5		9
Adjusted total noninterest expense	$	495		$	500		$	502		$	465		$	461		$	(5)	(1)	%	$	34	7	%

Adjusted pre-provision net revenue4	$	324		$	323		$	298		$	318		$	349		$	1	—	%	$	(25)	(7)	%

Provision for credit losses	$	55		$	50		$	50		$	110		$	50		$	5	10	%	$	5	10	%







Adjusted net income available to common shareholders	$	195		$	195		$	178		$	150		$	219		$	—	—	%	$	(24)	(11)	%

Adjusted Common Share Data


Adjusted diluted EPS	$	0.36		$	0.35		$	0.32		$	0.27		$	0.39		$	0.01	2	%	$	(0.03)	(9)	%
Diluted shares8	547			558			561			561			561			(11)		(2)	%	(14)		(2)	%

Adjusted effective tax rate	21.5		%	22.5		%	21.7		%	20.1		%	21.6		%
Adjusted ROTCE	12.0		%	11.6		%	11.1		%	9.2		%	14.6		%
Adjusted efficiency ratio	60.5		%	60.8		%	62.8		%	59.4		%	56.9		%

Numbers may not foot due to rounding.

See footnote disclosures on page 19.


NOTABLE ITEMS
Quarterly, Unaudited



(In millions)	2Q24		1Q24		4Q23		3Q23		2Q23
Summary of Notable Items:
Gain on merger termination	$	—	$	—	$	—	$	—	$	225
Net merger/acquisition/transaction-related items	—		—		—		—		(30)


Gain/(loss) related to equity securities investments (other noninterest income)	—		—		(6)		—		—
Net gain on asset disposition (other noninterest income less incentives)	—		—		7		—		—
FDIC special assessment (other noninterest expense)	(2)		(10)		(68)		—		—
Other notable expenses *	(3)		(5)		—		(10)		(65)
Total notable items (pre-tax)	$	(5)	$	(15)	$	(67)	$	(10)	$	130
Tax-related notable items **	$	—	$	—	$	48	$	(13)	$	—
Preferred Stock Dividend ***	$	(7)	$	—	$	—	$	—	$	—

Numbers may not foot due to rounding

* 2Q24, 1Q24 and 3Q23 include $3 million, $5 million and $10 million of restructuring expenses; 2Q23 includes $50 million contribution to First Horizon Foundation and $15 million of Visa derivative valuation expenses.

** 4Q23 includes a $48 million after-tax benefit primarily from the resolution of IberiaBank merger-related tax items; 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.

*** 2Q24 includes $7 million deemed dividends on the redemption of $100 million par value of Series D Preferred Stock.


IMPACT OF NOTABLE ITEMS:
Quarterly, Unaudited



(In millions)	2Q24		1Q24		4Q23		3Q23		2Q23
Impacts of Notable Items:



Noninterest income:






Gain on merger termination	$	—	$	—	$	—	$	—	$	(225)
Other noninterest income	—		—		(4)		—		—
Total noninterest income	$	—	$	—	$	(4)	$	—	$	(225)


Noninterest expense:
Personnel expenses:
Salaries and benefits	$	—	$	—	$	—	$	—	$	(4)
Incentives and commissions	(1)		(5)		(2)		(9)		(21)

Total personnel expenses	(1)		(5)		(2)		(10)		(25)

Outside services	(3)		—		—		—		(4)

Other noninterest expense	(2)		(10)		(68)		—		(66)
Total noninterest expense	$	(5)	$	(15)	$	(70)	$	(10)	$	(95)







Income before income taxes	$	5	$	15	$	67	$	10	$	(130)
Provision for income taxes *	1		3		64		(11)		(33)

Preferred stock dividends **	(7)		—		—		—		—
Net income/(loss) available to common shareholders	$	11	$	12	$	3	$	20	$	(98)
EPS impact of notable items	$	0.02	$	0.02	$	0.01	$	0.04	$	(0.17)

Numbers may not foot due to rounding

* 4Q23 includes a $48 million after-tax benefit primarily from the resolution of IberiaBank merger-related tax items; 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.

** 2Q24 includes $7 million deemed dividends on the redemption of $100 million par value of Series D Preferred Stock.


FINANCIAL RATIOS
Quarterly, Unaudited
																2Q24 Change vs.
	2Q24			1Q24			4Q23			3Q23			2Q23			1Q24					2Q23
FINANCIAL RATIOS																$/bp			%		$/bp			%
Net interest margin6	3.38		%	3.37		%	3.27		%	3.17		%	3.38		%	1		bp			—		bp

Return on average assets	1.00		%	0.97		%	0.91		%	0.68		%	1.60		%	3					(60)
Adjusted return on average assets4	1.02		%	1.03		%	0.92		%	0.78		%	1.13		%	(1)					(11)
Return on average common equity (“ROCE”)	8.98		%	8.76		%	8.60		%	6.28		%	16.40		%	22					(742)

Return on average tangible common equity (“ROTCE”)4	11.29		%	10.95		%	10.89		%	7.95		%	21.10		%	34					(981)
Adjusted ROTCE4	11.99		%	11.65		%	11.05		%	9.21		%	14.59		%	34					(260)
Noninterest income as a % of total revenue	22.75		%	23.72		%	23.33		%	22.23		%	38.80		%	(97)					(1,605)
Adjusted noninterest income as a % of total revenue4	22.64		%	23.61		%	22.32		%	22.11		%	21.60		%	(97)					104
Efficiency ratio	61.44		%	62.92		%	71.14		%	60.96		%	53.89		%	(148)					755
Adjusted efficiency ratio4	60.47		%	60.78		%	62.84		%	59.43		%	56.92		%	(31)					355
Allowance for credit losses to loans and leases4	1.41		%	1.40		%	1.40		%	1.36		%	1.35		%	1					6

CAPITAL DATA
CET1 capital ratio*	11.0		%	11.3		%	11.4		%	11.1		%	11.1		%	(26)		bp			(3)		bp
Tier 1 capital ratio*	12.0		%	12.3		%	12.4		%	12.1		%	12.1		%	(27)		bp			(4)		bp
Total capital ratio*	13.7		%	13.9		%	14.0		%	13.6		%	13.6		%	(26)		bp			9		bp
Tier 1 leverage ratio*	10.6		%	10.8		%	10.7		%	10.5		%	10.5		%	(21)		bp			9		bp
Risk-weighted assets (“RWA”) (billions)*	$	71.9		$	71.1		$	71.1		$	71.9		$	71.5		$	0.8		1	%	$	0.4		1	%
Total equity to total assets	10.89		%	11.21		%	11.38		%	10.65		%	10.53		%	(32)		bp			36		bp
Tangible common equity/tangible assets (“TCE/TA”)4	8.14		%	8.33		%	8.48		%	7.76		%	7.71		%	(19)		bp			44		bp
Period-end shares outstanding (millions)8	537			549			559			559			559			(12)			(2)	%	(22)			(4)	%
Cash dividends declared per common share	$	0.15		$	0.15		$	0.15		$	0.15		$	0.15		$	—		—	%	$	—		—	%
Book value per common share	$	15.34		$	15.23		$	15.17		$	14.28		$	14.58		$	0.11		1	%	$	0.76		5	%
Tangible book value per common share4	$	12.22		$	12.16		$	12.13		$	11.22		$	11.50		$	0.06		—	%	$	0.72		6	%


SELECTED BALANCE SHEET DATA
Loans-to-deposit ratio (period-end balances)	96.89		%	93.93		%	93.18		%	92.18		%	93.68		%	296		bp			321		bp
Loans-to-deposit ratio (average balances)	95.49		%	93.54		%	91.53		%	92.35		%	97.52		%	195		bp			(203)		bp
Full-time equivalent associates	7,297			7,327			7,277			7,340			7,327			(30)			—	%	(30)			—	%

*Current quarter is an estimate.

See footnote disclosures on page 19.

CONSOLIDATED PERIOD-END BALANCE SHEET

Quarterly, Unaudited


											2Q24 Change vs.
(In millions)	2Q24		1Q24		4Q23		3Q23		2Q23		1Q24				2Q23
Assets:											$		%		$		%

Loans and leases:
Commercial, financial, and industrial (C&I)	$	33,452	$	32,911	$	32,632	$	33,163	$	33,116	$	542	2	%	$	337	1	%
Commercial real estate	14,669		14,426		14,216		14,121		13,891		242		2		778		6
Total Commercial	48,121		47,337		46,849		47,283		47,006		784		2		1,115		2
Consumer real estate	13,909		13,645		13,650		13,685		13,475		264		2		434		3
Credit card and other5	751		771		793		809		813		(20)		(3)		(63)		(8)
Total Consumer	14,660		14,416		14,443		14,494		14,289		244		2		371		3
Loans and leases, net of unearned income	62,781		61,753		61,292		61,778		61,295		1,028		2		1,486		2
Loans held for sale	471		395		502		613		789		76		19		(319)		(40)
Investment securities	9,221		9,460		9,714		9,435		9,949		(238)		(3)		(728)		(7)
Trading securities	1,249		1,161		1,412		1,231		1,059		88		8		191		18
Interest-bearing deposits with banks	1,452		1,885		1,328		1,917		4,523		(432)		(23)		(3,071)		(68)
Federal funds sold and securities purchased under agreements to resell	487		817		719		416		282		(330)		(40)		205		73
Total interest earning assets	75,662		75,470		74,967		75,389		77,898		191		—		(2,236)		(3)
Cash and due from banks	969		749		1,012		1,022		1,137		219		29		(168)		(15)
Goodwill and other intangible assets, net	1,674		1,685		1,696		1,709		1,720		(11)		(1)		(46)		(3)
Premises and equipment, net	584		586		590		590		595		(3)		—		(11)		(2)
Allowance for loan and lease losses	(821)		(787)		(773)		(760)		(737)		(34)		(4)		(84)		(11)
Other assets	4,162		4,094		4,169		4,584		4,458		68		2		(296)		(7)
Total assets	$	82,230	$	81,799	$	81,661	$	82,533	$	85,071	$	431	1	%	$	(2,841)	(3)	%

Liabilities and Shareholders' Equity:
Deposits:
Savings	$	25,437	$	25,847	$	25,082	$	25,590	$	23,733	$	(410)	(2)	%	$	1,704	7	%
Time deposits	7,163		6,297		6,804		7,783		8,279		866		14		(1,116)		(13)
Other interest-bearing deposits	15,845		17,186		16,689		15,817		14,620		(1,341)		(8)		1,226		8
Total interest-bearing deposits	48,446		49,331		48,576		49,190		46,632		(885)		(2)		1,814		4
Trading liabilities	423		467		509		366		174		(44)		(9)		248		NM
Federal funds purchased and securities sold under agreements to repurchase	2,572		2,137		2,223		2,015		2,169		435		20		403		19
Short-term borrowings	1,943		566		326		492		4,777		1,377		NM		(2,834)		(59)
Term borrowings	1,175		1,165		1,150		1,157		1,156		10		1		19		2
Total interest-bearing liabilities	54,559		53,665		52,783		53,220		54,908		893		2		(350)		(1)
Noninterest-bearing deposits	16,348		16,410		17,204		17,825		18,801		(62)		—		(2,453)		(13)
Other liabilities	2,368		2,550		2,383		2,694		2,403		(182)		(7)		(34)		(1)
Total liabilities	73,275		72,626		72,370		73,740		76,112		649		1		(2,837)		(4)
Shareholders' Equity:
Preferred stock	426		520		520		520		520		(94)		(18)		(94)		(18)
Common stock	336		343		349		349		349		(7)		(2)		(14)		(4)
Capital surplus	5,007		5,214		5,351		5,337		5,324		(207)		(4)		(317)		(6)
Retained earnings	4,172		4,072		3,964		3,874		3,830		101		2		342		9
Accumulated other comprehensive loss, net	(1,281)		(1,271)		(1,188)		(1,582)		(1,359)		(10)		(1)		78		6
Combined shareholders' equity	8,660		8,878		8,996		8,498		8,664		(218)		(2)		(4)		—
Noncontrolling interest	295		295		295		295		295		—		—		—		—
Total shareholders' equity	8,955		9,173		9,291		8,794		8,960		(218)		(2)		(4)		—
Total liabilities and shareholders' equity	$	82,230	$	81,799	$	81,661	$	82,533	$	85,071	$	431	1	%	$	(2,841)	(3)	%
Memo:
Total deposits	$	64,794	$	65,741	$	65,780	$	67,015	$	65,433	$	(947)	(1)	%	$	(639)	(1)	%
Loans to mortgage companies	$	2,934	$	2,366	$	2,024	$	2,237	$	2,691	$	568	24	%	$	243	9	%
Unfunded Loan Commitments:
Commercial	$	18,781	$	19,996	$	21,328	$	22,063	$	22,134	$	(1,215)	(6)	%	$	(3,353)	(15)	%
Consumer	$	4,334	$	4,383	$	4,401	$	4,432	$	4,400	$	(49)	(1)	%	$	(66)	(2)	%

Numbers may not foot due to rounding. See footnote disclosures on page 19.

CONSOLIDATED AVERAGE BALANCE SHEET

Quarterly, Unaudited


											2Q24 Change vs.
(In millions)	2Q24		1Q24		4Q23		3Q23		2Q23		1Q24				2Q23
Assets:											$		%		$		%
Loans and leases:
Commercial, financial, and industrial (C&I)	$	32,909	$	32,389	$	32,520	$	33,042	$	32,423	$	519	2	%	$	485	1	%
Commercial real estate	14,576		14,367		14,210		13,999		13,628		209		1		949		7
Total Commercial	47,485		46,756		46,730		47,041		46,051		728		2		1,434		3
Consumer real estate	13,783		13,615		13,664		13,575		13,058		168		1		725		6
Credit card and other5	761		781		802		816		815		(20)		(3)		(54)		(7)
Total Consumer	14,544		14,396		14,466		14,391		13,873		148		1		671		5
Loans and leases, net of unearned income	62,029		61,152		61,197		61,432		59,924		876		1		2,105		4
Loans held-for-sale	462		454		547		782		731		8		2		(269)		(37)
Investment securities	9,261		9,590		9,394		9,811		10,192		(329)		(3)		(931)		(9)
Trading securities	1,367		1,245		1,225		1,099		1,110		122		10		257		23
Interest-bearing deposits with banks	1,449		1,793		2,556		2,867		3,110		(344)		(19)		(1,661)		(53)
Federal funds sold and securities purchased under agreements to resell	676		544		529		315		279		132		24		397		142
Total interest earning assets	75,243		74,778		75,448		76,306		75,346		465		1		(103)		—
Cash and due from banks	904		948		994		997		1,024		(45)		(5)		(121)		(12)
Goodwill and other intangibles assets, net	1,680		1,691		1,702		1,714		1,726		(11)		(1)		(47)		(3)
Premises and equipment, net	585		587		589		592		598		(2)		—		(13)		(2)
Allowances for loan and lease losses	(810)		(789)		(772)		(766)		(728)		(22)		(3)		(82)		(11)
Other assets	4,120		4,028		4,352		4,377		4,338		92		2		(218)		(5)
Total assets	$	81,721	$	81,243	$	82,313	$	83,220	$	82,304	$	477	1	%	$	(583)	(1)	%

Liabilities and shareholders' equity:
Deposits:
Savings	$	25,462	$	25,390	$	25,799	$	24,963	$	21,542	$	72	—	%	$	3,920	18	%
Time deposits	6,683		6,628		7,372		8,087		5,520		55		1		1,163		21
Other interest-bearing deposits	16,484		16,735		16,344		15,329		14,719		(251)		(2)		1,765		12
Total interest-bearing deposits	48,629		48,753		49,515		48,379		41,781		(124)		—		6,847		16
Trading liabilities	605		462		386		276		216		144		31		389		NM
Federal funds purchased and securities sold under agreements to repurchase	2,208		2,014		1,982		1,970		1,634		195		10	%	574		35	%
Short-term borrowings	1,267		537		437		1,790		6,365		730		136		(5,098)		(80)
Term borrowings	1,170		1,156		1,156		1,161		1,428		14		1		(258)		(18)
Total interest-bearing liabilities	53,879		52,921		53,475		53,575		51,424		957		2		2,455		5
Noninterest-bearing deposits	16,332		16,626		17,347		18,145		19,664		(294)		(2)		(3,332)		(17)
Other liabilities	2,561		2,445		2,585		2,522		2,187		116		5		374		17
Total liabilities	72,772		71,992		73,407		74,242		73,275		779		1		(503)		(1)
Shareholders' Equity:
Preferred stock	426		520		520		520		986		(94)		(18)		(560)		(57)
Common stock	340		347		349		349		337		(7)		(2)		3		1
Capital surplus	5,127		5,301		5,343		5,330		4,891		(174)		(3)		236		5
Retained earnings	4,122		4,028		3,935		3,861		3,759		93		2		362		10
Accumulated other comprehensive loss, net	(1,361)		(1,240)		(1,538)		(1,378)		(1,241)		(121)		(10)		(121)		(10)
Combined shareholders' equity	8,654		8,956		8,610		8,683		8,734		(302)		(3)		(80)		(1)
Noncontrolling interest	295		295		295		295		295		—		—		—		—
Total shareholders' equity	8,949		9,251		8,905		8,978		9,029		(302)		(3)		(80)		(1)
Total liabilities and shareholders' equity	$	81,721	$	81,243	$	82,313	$	83,220	$	82,304	$	477	1	%	$	(583)	(1)	%
Memo:
Total deposits	$	64,960	$	65,379	$	66,862	$	66,523	$	61,445	$	(418)	(1)	%	$	3,515	6	%
Loans to mortgage companies	$	2,440	$	1,847	$	1,948	$	2,353	$	2,262	$	593	32	%	$	177	8	%

Numbers may not foot due to rounding. See footnote disclosures on page 19.


CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCE SHEET: YIELDS AND RATES
Quarterly, Unaudited
																					2Q24 Change vs.
	2Q24				1Q24				4Q23				3Q23				2Q23				1Q24					2Q23
(In millions, except rates)	Income/Expense		Rate		Income/Expense		Rate		Income/Expense		Rate		Income/Expense		Rate		Income/Expense		Rate		Income/Expense					Income/Expense
																					$/bp			%		$/bp			%
Interest earning assets/Interest income:
Loans and leases, net of unearned income:


Commercial	$	800	6.78	%	$	782	6.73	%	$	783	6.65	%	$	779	6.58	%	$	727	6.34	%	$	18		2	%	$	73		10	%


Consumer	179		4.91		173		4.80		171		4.71		165		4.55		153		4.39		6			3		26			17
Loans and leases, net of unearned income	978		6.34		955		6.28		954		6.19		944		6.10		880		5.89		23			2		98			11
Loans held-for-sale	9		7.50		9		7.80		11		8.34		15		7.88		14		7.58		—			(1)		(5)			(37)
Investment securities	60		2.58		61		2.54		61		2.62		62		2.54		63		2.49		(1)			(2)		(4)			(6)
Trading securities	22		6.30		20		6.48		20		6.63		19		7.03		19		6.69		1			7		3			16
Interest-bearing deposits with banks	20		5.46		24		5.46		35		5.46		39		5.34		40		5.13		(5)			(19)		(20)			(51)
Federal funds sold and securities purchased under agreements	9		5.31		7		5.16		7		5.32		4		5.06		3		4.85		2			28		6			NM
Interest income	$	1,097	5.86	%	$	1,076	5.78	%	$	1,089	5.74	%	$	1,084	5.64	%	$	1,019	5.42	%	$	21		2	%	$	78		8	%

Interest bearing liabilities/Interest expense:
Interest-bearing deposits:
Savings	$	208	3.29	%	$	206	3.27	%	$	222	3.42	%	$	219	3.48	%	$	141	2.63	%	$	2		1	%	$	67		48	%
Time deposits	74		4.45		73		4.42		82		4.42		89		4.35		49		3.56		1			1		25			51
Other interest-bearing deposits	117		2.86		119		2.86		116		2.81		102		2.64		75		2.06		(2)			(1)		42			56
Total interest-bearing deposits	399		3.30		398		3.28		420		3.37		409		3.36		265		2.55		1			—		134			50
Trading liabilities	7		4.46		5		4.31		4		4.59		3		4.20		2		3.82		2			35		5			NM
Federal funds purchased and securities sold under agreements to repurchase	24		4.36		21		4.24		22		4.35		21		4.24		15		3.74		3			13		9			57
Short-term borrowings	17		5.48		7		5.43		6		5.41		24		5.42		83		5.25		10			138		(66)			(79)
Term borrowings	17		5.64		17		5.71		17		5.75		17		5.82		19		5.21		—			—		(2)			(11)
Interest expense	464		3.46		448		3.40		469		3.48		475		3.52		385		3.00		16			4		79			21
Net interest income - tax equivalent basis	633		2.40		628		2.38		621		2.26		609		2.12		635		2.42		5			1		(2)			—
Fully taxable equivalent adjustment	(4)		0.98		(4)		0.99		(4)		1.01		(4)		1.05		(4)		0.96		—			(10)		—			(6)
Net interest income	$	629	3.38	%	$	625	3.37	%	$	617	3.27	%	$	605	3.17	%	$	631	3.38	%	$	4		1	%	$	(2)		—	%

Memo:
Total loan yield			6.34	%			6.28	%			6.19	%			6.10	%			5.89	%	6		bp			45		bp
Total deposit cost			2.47	%			2.45	%			2.49	%			2.44	%			1.73	%	2		bp			74		bp
Total funding cost			2.66	%			2.59	%			2.63	%			2.63	%			2.17	%	7		bp			49		bp
Average loans and leases, net of unearned income	$	62,029			$	61,152			$	61,197			$	61,432			$	59,924			$	876		1	%	$	2,105		4	%
Average deposits	64,960				65,379				66,862				66,523				61,445				(418)			(1)	%	3,515			6	%
Average funded liabilities	70,210				69,547				70,822				71,720				71,088				$	663		1	%	$	(877)		(1)	%

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 19.


CONSOLIDATED NONPERFORMING LOANS AND LEASES ("NPL")
Quarterly, Unaudited

	As of															2Q24 change vs.
(In millions, except ratio data)	2Q24			1Q24			4Q23			3Q23			2Q23			1Q24				2Q23
																$		%		$		%
Nonperforming loans and leases
Commercial, financial, and industrial (C&I)	$	167		$	206		$	184		$	123		$	184		$	(39)	(19)	%	$	(16)	(9)	%
Commercial real estate	261			157			136			125			73			104		66		188		NM
Consumer real estate	143			140			139			145			144			4		3		(1)		—
Credit card and other5	2			2			2			2			2			—		21		—		(15)
Total nonperforming loans and leases	$	574		$	505		$	462		$	394		$	402		$	69	14	%	$	171	43	%

Asset Quality Ratio
Nonperforming loans and leases to loans and leases
Commercial, financial, and industrial (C&I)	0.50		%	0.63		%	0.57		%	0.37		%	0.55		%
Commercial real estate	1.78			1.09			0.96			0.88			0.52
Consumer real estate	1.03			1.02			1.02			1.06			1.07
Credit card and other5	0.25			0.20			0.30			0.26			0.27
Total nonperforming loans and leases to loans and leases	0.91		%	0.82		%	0.75		%	0.64		%	0.66		%

Numbers may not foot due to rounding.

See footnote disclosures on page 19.


CONSOLIDATED LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING
Quarterly, Unaudited

	As of										2Q24 change vs.
(In millions)	2Q24		1Q24		4Q23		3Q23		2Q23		1Q24				2Q23
											$		%		$		%
Loans and leases 90 days or more past due and accruing
Commercial, financial, and industrial (C&I)	$	—	$	—	$	1	$	3	$	1	$	—	NM		$	(1)	NM
Commercial real estate	—		—		—		—		—		—		NM		—		NM
Consumer real estate	3		6		17		12		8		(3)		(47)		(5)		(58)
Credit card and other5	2		3		3		3		5		(1)		(25)		(2)		(52)
Total loans and leases 90 days or more past due and accruing	$	6	$	10	$	21	$	17	$	14	$	(4)	(38)	%	$	(8)	(56)	%

Numbers may not foot due to rounding.

See footnote disclosures on page 19.


CONSOLIDATED NET CHARGE-OFFS (RECOVERIES)
Quarterly, Unaudited

	As of															2Q24 change vs.
(In millions, except ratio data)	2Q24			1Q24			4Q23			3Q23			2Q23			1Q24				2Q23
Charge-off, Recoveries and Related Ratios																$		%		$		%
Gross Charge-offs
Commercial, financial, and industrial (C&I) *	$	24		$	28		$	31		$	92		$	19		$	(4)	(13)	%	$	5	28	%
Commercial real estate	19			12			2			5			8			7		54		11		NM
Consumer real estate	1			—			1			1			1			1		NM		—		46
Credit card and other5	5			6			6			7			5			(1)		(16)		—		1
Total gross charge-offs	$	49		$	46		$	41		$	104		$	33		$	3	6	%	$	16	50	%
Gross Recoveries
Commercial, financial, and industrial (C&I)	$	(11)		$	(3)		$	(2)		$	(5)		$	(5)		$	(9)	NM		$	(7)	NM
Commercial real estate	—			—			—			—			(1)			—		91		1		99
Consumer real estate	(2)			(1)			(2)			(2)			(3)			(1)		(74)		—		9
Credit card and other5	(1)			(2)			(1)			(1)			(1)			—		27		—		(2)
Total gross recoveries	$	(15)		$	(6)		$	(5)		$	(9)		$	(9)		$	(9)	NM		$	(6)	(62)	%
Net Charge-offs (Recoveries)
Commercial, financial, and industrial (C&I) *	$	13		$	25		$	29		$	86		$	14		$	(12)	(49)	%	$	(1)	(10)	%
Commercial real estate	19			12			2			4			8			7		55		11		NM
Consumer real estate	(1)			(1)			—			(2)			(2)			—		(53)		1		29
Credit card and other5	3			4			5			6			3			—		(12)		—		1
Total net charge-offs	$	34		$	40		$	36		$	95		$	23		$	(6)	(16)	%	$	11	46	%

Annualized Net Charge-off (Recovery) Rates
Commercial, financial, and industrial (C&I) *	0.16		%	0.31		%	0.36		%	1.04		%	0.18		%
Commercial real estate	0.53			0.35			0.06			0.12			0.23
Consumer real estate	(0.04)			(0.03)			—			(0.05)			(0.06)
Credit card and other5	1.79			1.98			2.36			2.77			1.65
Total loans and leases	0.22		%	0.27		%	0.23		%	0.61		%	0.16		%

Numbers may not foot due to rounding.

•3Q23 increase driven by a single credit from a company in bankruptcy.

See footnote disclosures on page 19.


CONSOLIDATED ALLOWANCE FOR LOAN AND LEASE LOSSES AND RESERVE FOR UNFUNDED COMMITMENTS
Quarterly, Unaudited

	As of										2Q24 Change vs.
(In millions)	2Q24		1Q24		4Q23		3Q23		2Q23		1Q24				2Q23
Summary of Changes in the Components of the Allowance For Credit Losses											$		%		$		%
Allowance for loan and lease losses - beginning	$	787	$	773	$	760	$	737	$	715	$	14	2	%	$	72	10	%













Charge-offs:
Commercial, financial, and industrial (C&I) *	(24)		(28)		(31)		(92)		(19)		4		13		(5)		(28)
Commercial real estate	(19)		(12)		(2)		(5)		(8)		(7)		(54)		(11)		NM
Consumer real estate	(1)		—		(1)		(1)		(1)		(1)		NM		—		(46)
Credit card and other5	(5)		(6)		(6)		(7)		(5)		1		16		—		(1)
Total charge-offs	(49)		(46)		(41)		(104)		(33)		(3)		(6)		(16)		(50)
Recoveries:
Commercial, financial, and industrial (C&I)	11		3		2		5		5		9		NM		7		NM
Commercial real estate	—		—		—		—		1		—		(91)		(1)		(99)
Consumer real estate	2		1		2		2		3		1		74		—		(9)
Credit card and other5	1		2		1		1		1		—		(27)		—		2
Total Recoveries	15		6		5		9		9		9		NM		6		62
Provision for loan and lease losses:
Commercial, financial, and industrial (C&I) *	9		34		33		96		15		(24)		(72)		(6)		(39)
Commercial real estate	59		21		6		14		16		38		NM		43		NM
Consumer real estate	(1)		(3)		5		5		10		2		73		(11)		NM
Credit card and other5	—		3		5		3		3		(2)		(88)		(3)		(89)
Total provision for loan and lease losses:	68		54		49		118		45		14		26		23		51
Allowance for loan and lease losses - ending	$	821	$	787	$	773	$	760	$	737	$	34	4	%	$	84	11	%

Reserve for unfunded commitments - beginning	$	79	$	83	$	82	$	90	$	85	$	(4)	(5)	%	$	(6)	(7)	%
Cumulative effect of change in accounting principle	—		—		—		—		—		—		NM		—		NM
Acquired reserve for unfunded commitments	—		—		—		—		—		—		NM		—		NM
Provision for unfunded commitments	(13)		(4)		1		(8)		5		(9)		NM		(18)		NM
Reserve for unfunded commitments - ending	$	66	$	79	$	83	$	82	$	90	$	(13)	(17)	%	$	(24)	(27)	%
Total allowance for credit losses- ending	$	887	$	865	$	856	$	842	$	827	$	22	2	%	$	60	7	%

Numbers may not foot due to rounding.

•3Q23 increase driven by a single credit from a company in bankruptcy.

See footnote disclosures on page 19.


CONSOLIDATED ASSET QUALITY RATIOS - ALLOWANCE FOR LOAN AND LEASE LOSSES
Quarterly, Unaudited

	As of
	2Q24		1Q24		4Q23		3Q23		2Q23

Allowance for loans and lease losses to loans and leases
Commercial, financial, and industrial (C&I)	1.03	%	1.06	%	1.04	%	1.01	%	0.98	%
Commercial real estate	1.51	%	1.26	%	1.21	%	1.19	%	1.14	%
Consumer real estate	1.66	%	1.69	%	1.71	%	1.67	%	1.64	%
Credit card and other5	3.26	%	3.57	%	3.63	%	3.48	%	3.79	%
Total allowance for loans and lease losses to loans and leases	1.31	%	1.27	%	1.26	%	1.23	%	1.20	%
Allowance for loans and lease losses to nonperforming loans and leases
Commercial, financial, and industrial (C&I)	205	%	168	%	184	%	273	%	177	%
Commercial real estate	85	%	115	%	126	%	135	%	219	%
Consumer real estate	161	%	165	%	168	%	158	%	154	%
Credit card and other5	1,295	%	1,766	%	1,202	%	1,364	%	1,384	%
Total allowance for loans and lease losses to nonperforming loans and leases	143	%	156	%	167	%	193	%	183	%

Allowance for credit losses ratios
Total allowance for credit losses to loans and leases4	1.41	%	1.40	%	1.40	%	1.36	%	1.35	%
Total allowance for credit losses to nonperforming loans and leases4	155	%	171	%	185	%	214	%	206	%

See footnote disclosures on page 19.

REGIONAL BANKING

Quarterly, Unaudited


																2Q24 Change vs.
	2Q24			1Q24			4Q23			3Q23			2Q23			1Q24					2Q23
																$/bp			%		$/bp			%
Income Statement (millions)
Net interest income	$	522		$	532		$	548		$	558		$	586		$	(10)		(2)	%	$	(64)		(11)	%
Noninterest income	109			105			106			106			106			4			4		3			3
Total revenue	632			637			655			664			691			(5)			(1)		(59)			(9)
Noninterest expense	334			324			334			311			314			10			3		20			6
Pre-provision net revenue3	298			313			321			353			377			(15)			(5)		(79)			(21)
Provision for credit losses	57			28			28			112			35			29			104		22			63
Income before income tax expense	241			285			293			241			342			(44)			(15)		(101)			(30)
Income tax expense	55			67			69			56			80			(12)			(18)		(25)			(31)
Net income	$	185		$	219		$	224		$	185		$	262		$	(34)		(16)	%	$	(77)		(29)	%

Average Balances (billions)
Total loans and leases	$	41.0		$	40.6		$	40.6		$	40.6		$	39.7		$	0.4		1	%	$	1.3		3	%
Interest-earning assets	41.0			40.6			40.6			40.6			39.7			0.4			1		1.3			3
Total assets	43.5			43.1			43.2			43.3			42.3			0.4			1		1.2			3
Total deposits	57.5			57.8			58.6			58.0			55.2			(0.3)			(1)		2.3			4

Key Metrics
Net interest margin6	5.16		%	5.30		%	5.39		%	5.48		%	5.95		%	(14)		bp			(79)		bp
Efficiency ratio	52.80		%	50.83		%	51.04		%	46.82		%	45.41		%	197		bp			739		bp
Loans-to-deposits ratio (period-end balances)	72.05		%	69.82		%	68.76		%	69.68		%	70.22		%	223		bp			183		bp
Loans-to-deposits ratio (average-end balances)	71.32		%	70.18		%	69.34		%	70.03		%	71.83		%	114		bp			(51)		bp
Return on average assets (annualized)	1.71		%	2.04		%	2.06		%	1.70		%	2.48		%	(33)		bp			(77)		bp
Return on allocated equity7	21.47		%	25.37		%	25.84		%	21.30		%	30.36		%	(390)		bp			(889)		bp
Financial center locations	418			418			418			418			417			—					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 19.

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

Quarterly, Unaudited


																2Q24 Change vs.
	2Q24			1Q24			4Q23			3Q23			2Q23			1Q24					2Q23
																$/bp			%		$/bp			%
Income Statement (millions)
Net interest income	$	158		$	153		$	153		$	161		$	156		$	5		3	%	$	2		1	%
Noninterest income	64			72			64			49			50			(7)			(10)		14			27
Total revenue	222			224			217			209			206			(3)			(1)		15			7
Noninterest expense	103			104			101			96			95			(1)			(1)		8			8
Pre-provision net revenue3	119			120			116			114			112			(1)			(1)		8			7
Provision for credit losses	1			23			31			2			18			(22)			(98)		(18)			(97)
Income before income tax expense	119			97			85			111			93			21			22		25			27
Income tax expense	29			24			21			27			23			5			22		6			28
Net income	$	90		$	74		$	64		$	84		$	71		$	16		22	%	$	19		27	%

Average Balances (billions)
Total loans and leases	$	20.7		$	20.2		$	20.1		$	20.4		$	19.8		$	0.5		3	%	$	0.9		5	%
Interest-earning assets	23.3			22.4			22.4			22.7			22.0			0.8			4		1.3			6
Total assets	24.6			23.8			23.9			24.1			23.3			0.8			3		1.3			5
Total deposits	3.9			4.0			4.2			4.1			3.8			(0.1)			(3)		0.1			2

Key Metrics
Fixed income product average daily revenue (thousands)	$	488		$	731		$	463		$	301		$	348		$	(243)		(33)	%	$	140		40	%
Net interest margin6	2.72		%	2.73		%	2.71		%	2.81		%	2.85		%	(1)		bp			(13)		bp
Efficiency ratio	46.28		%	46.40		%	46.60		%	45.80		%	45.92		%	(12)		bp			36		bp
Loans-to-deposits ratio (period-end balances)	551		%	539		%	524		%	493		%	534		%	1,224		bp			1,684		bp
Loans-to-deposits ratio (average-end balances)	535		%	506		%	482		%	501		%	521		%	2,881		bp			1,330		bp
Return on average assets (annualized)	1.47		%	1.25		%	1.06		%	1.39		%	1.21		%	22		bp			26		bp
Return on allocated equity7	16.86		%	14.13		%	12.41		%	17.21		%	15.37		%	273		bp			149		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 19.

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, and mortgage. 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

Quarterly, Unaudited


											2Q24 Change vs.
	2Q24		1Q24		4Q23		3Q23		2Q23		1Q24				2Q23
											$		%		$		%
Income Statement (millions)
Net interest income/(expense)	$	(51)	$	(60)	$	(85)	$	(113)	$	(111)	$	9	15	%	$	60	54	%
Noninterest income	13		18		13		18		244		(5)		(28)		(231)		(95)
Total revenues	(39)		(43)		(72)		(95)		133		4		9		(172)		(129)
Noninterest expense	64		87		137		67		147		(23)		(27)		(83)		(56)
Pre-provision net revenue3	(103)		(130)		(209)		(162)		(14)		27		21		(89)		NM
Provision for credit losses	(3)		(1)		(9)		(5)		(4)		(2)		NM		1		17
Income before income tax expense	(100)		(129)		(200)		(158)		(10)		29		23		(90)		NM
Income tax expense (benefit)	(29)		(33)		(100)		(31)		(7)		5		15		(22)		NM
Net income/(loss)	$	(71)	$	(95)	$	(100)	$	(127)	$	(3)	$	24	26	%	$	(68)	NM

Average Balance Sheet (billions)
Interest bearing assets	$	11.0	$	11.8	$	12.4	$	13.0	$	13.7	$	(0.8)	(7)	%	$	(2.7)	(20)	%
Total assets	13.6		14.4		15.2		15.9		16.7		(0.8)		(5)		(3.1)		(18)

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 20.

5 Credit card and other includes $190 million of commercial credit card balances at June 30, 2024.

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 Share count was impacted by the repurchase of 11 million shares during 1Q24 and 14 million shares during 2Q24.


CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited

($s in millions, except per share data)	2Q24			1Q24			4Q23			3Q23			2Q23

Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$	8,955		$	9,173		$	9,291		$	8,794		$	8,960
Less: Noncontrolling interest (a)	295			295			295			295			295
Less: Preferred stock (a)	426			520			520			520			520
(B) Total common equity	$	8,234		$	8,358		$	8,476		$	7,978		$	8,144
Less: Intangible assets (GAAP) (b)	1,674			1,685			1,696			1,709			1,720
(C) Tangible common equity (Non-GAAP)	$	6,560		$	6,673		$	6,779		$	6,270		$	6,424

Tangible Assets (Non-GAAP)
(D) Total assets (GAAP)	$	82,230		$	81,799		$	81,661		$	82,533		$	85,071
Less: Intangible assets (GAAP) (b)	1,674			1,685			1,696			1,709			1,720
(E) Tangible assets (Non-GAAP)	$	80,556		$	80,114		$	79,965		$	80,825		$	83,351












Period-end Shares Outstanding
(F) Period-end shares outstanding	537			549			559			559			559

Ratios


(A)/(D) Total equity to total assets (GAAP)	10.89		%	11.21		%	11.38		%	10.65		%	10.53		%
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)	8.14		%	8.33		%	8.48		%	7.76		%	7.71		%
(B)/(F) Book value per common share (GAAP)	$	15.34		$	15.23		$	15.17		$	14.28		$	14.58
(C)/(F) Tangible book value per common share (Non-GAAP)	$	12.22		$	12.16		$	12.13		$	11.22		$	11.50

(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.


CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited

($s in millions, except per share data)		2Q24			1Q24			4Q23			3Q23			2Q23

Adjusted Diluted EPS
Net income available to common shareholders ("NIAC") (GAAP)	a	$	184		$	184		$	175		$	129		$	317
Plus Total notable items (after-tax) (Non-GAAP) (a)		$	11		$	12		$	3		$	20		$	(98)
Adjusted net income available to common shareholders (Non-GAAP)	b	$	195		$	196		$	178		$	150		$	219

Diluted Shares (GAAP)8	c	547			558			561			561			561

Diluted EPS (GAAP)	a/c	$	0.34		$	0.33		$	0.31		$	0.23		$	0.56
Adjusted diluted EPS (Non-GAAP)	b/c	$	0.36		$	0.35		$	0.32		$	0.27		$	0.39

Adjusted Net Income ("NI") and Adjusted Return on Assets ("ROA")
Net Income ("NI") (GAAP)		$	204		$	197		$	188		$	142		$	329
Plus Relevant notable items (after-tax) (Non-GAAP) (a)		$	4		$	12		$	3		$	20		$	(98)
Adjusted NI (Non-GAAP)		$	208		$	209		$	191		$	163		$	231

NI (annualized) (GAAP)	d	$	820		$	791		$	746		$	565		$	1,320
Adjusted NI (annualized) (Non-GAAP)	e	$	836		$	838		$	757		$	646		$	928

Average assets (GAAP)	f	$	81,721		$	81,243		$	82,313		$	83,220		$	82,304

ROA (GAAP)	d/f	1.00		%	0.97		%	0.91		%	0.68		%	1.60		%
Adjusted ROA (Non-GAAP)	e/f	1.02		%	1.03		%	0.92		%	0.78		%	1.13		%

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	$	739		$	739		$	695		$	513		$	1,270
Adjusted Net income available to common shareholders (annualized) (Non-GAAP)	h	$	785		$	787		$	706		$	594		$	878

Average Common Equity (GAAP)	i	$	8,228		$	8,436		$	8,090		$	8,163		$	7,747
Intangible Assets (GAAP) (b)		1,680			1,691			1,702			1,714			1,726
Average Tangible Common Equity (Non-GAAP)	j	$	6,548		$	6,745		$	6,388		$	6,448		$	6,021



ROCE (GAAP)	g/i	8.98		%	8.76		%	8.60		%	6.28		%	16.40		%


ROTCE (Non-GAAP)	g/j	11.29		%	10.95		%	10.89		%	7.95		%	21.10		%
Adjusted ROTCE (Non-GAAP)	h/j	11.99		%	11.65		%	11.05		%	9.21		%	14.59		%

(a) Adjusted for those notable items relevant to the amount being adjusted, as detailed on page 8.

(b) Includes goodwill and other intangible assets, net of amortization.

Numbers may not foot due to rounding.


CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited

(In millions)		2Q24			1Q24			4Q23			3Q23			2Q23

Adjusted Noninterest Income as a % of Total Revenue
Noninterest income (GAAP)	k	$	186		$	194		$	183		$	173		$	400
Plus notable items (pretax) (GAAP) (a)		—			—			(4)			—			(225)
Adjusted noninterest income (Non-GAAP)	l	$	186		$	194		$	179		$	173		$	175

Revenue (GAAP)	m	$	815		$	819		$	800		$	778		$	1,031
Taxable-equivalent adjustment		4			4			4			4			4
Revenue- Taxable-equivalent (Non-GAAP)		819			823			804			782			1,035
Plus notable items (pretax) (GAAP) (a)		—			—			(4)			—			(225)
Adjusted revenue (Non-GAAP)	n	$	819		$	823		$	800		$	782		$	810

Securities gains/(losses) (GAAP)	o	$	1		$	—		$	(5)		$	—		$	—

Noninterest income as a % of total revenue (GAAP)	(k-o)/ (m-o)	22.75		%	23.72		%	23.33		%	22.23		%	38.80		%
Adjusted noninterest income as a % of total revenue (Non-GAAP)	l/n	22.64		%	23.61		%	22.32		%	22.11		%	21.60		%

Adjusted Efficiency Ratio
Noninterest expense (GAAP)	p	$	500		$	515		$	572		$	474		$	555
Plus notable items (pretax) (GAAP) (a)		(5)			(15)			(70)			(10)			(95)
Adjusted noninterest expense (Non-GAAP)	q	$	495		$	500		$	502		$	465		$	461

Revenue (GAAP)	r	$	815		$	819		$	800		$	778		$	1,031
Taxable-equivalent adjustment		4			4			4			4			4
Revenue- Taxable-equivalent (Non-GAAP)		819			823			804			782			1,035
Plus notable items (pretax) (GAAP) (a)		—			—			(4)			—			(225)
Adjusted revenue (Non-GAAP)	s	$	819		$	823		$	800		$	782		$	810

Securities gains/(losses) (GAAP)	t	$	1		$	—		$	(5)		$	—		$	—

Efficiency ratio (GAAP)	p/ (r-t)	61.44		%	62.92		%	71.14		%	60.96		%	53.89		%
Adjusted efficiency ratio (Non-GAAP)	q/s	60.47		%	60.78		%	62.84		%	59.43		%	56.92		%

(a) Adjusted for those notable items relevant to the amount being adjusted, as detailed on page 8.

(b) Includes goodwill and other intangible assets, net of amortization.

Numbers may not foot due to rounding.

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION

Quarterly, Unaudited

($s in millions)



	Period-end								Average
	2Q24		1Q24		2Q24 vs.1Q24				2Q24		1Q24		2Q24 vs.1Q24










Loans excluding LMC
Total Loans (GAAP)	$	62,781	$	61,753	$	1,028	2	%	$	62,029	$	61,152	$	876	1	%
LMC (GAAP)	2,934		2,366		568		24	%	2,440		1,847		593		32	%
Total Loans excl. LMC (Non-GAAP)	59,847		59,387		460		1	%	59,589		59,305		284		—	%
Total Consumer (GAAP)	14,660		14,416		244		2	%	14,544		14,396		148		1	%
Total Commercial excl. LMC (Non-GAAP)	45,187		44,971		216		—	%	45,045		44,909		136		—	%
Total CRE (GAAP)	14,669		14,426		243		2	%	14,576		14,367		209		1	%
Total C&I excl. LMC (Non-GAAP)	$	30,518	$	30,545	$	(27)	—	%	$	30,469	$	30,542	$	(73)	—	%

Numbers may not foot due to rounding.



		2Q24			1Q24			4Q23			3Q23			2Q23
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	$	821		$	787		$	773		$	760		$	737
Reserve for unfunded commitments (GAAP)		66			79			83			82			90
Allowance for credit losses (Non-GAAP)	B	$	887		$	865		$	856		$	842		$	827

Loans and leases (GAAP)	C	$	62,781		$	61,753		$	61,292		$	61,778		$	61,295
Nonaccrual loans and leases (GAAP)	D	$	574		$	505		$	462		$	394		$	402

Allowance for loans and lease losses to loans and leases (GAAP)	A/C	1.31		%	1.27		%	1.26		%	1.23		%	1.20		%
Allowance for credit losses to loans and leases (Non-GAAP)	B/C	1.41		%	1.40		%	1.40		%	1.36		%	1.35		%

Allowance for loans and lease losses to nonperforming loans and leases (GAAP)	A/D	143		%	156		%	167		%	193		%	183		%
Allowance for credit losses to nonperforming loans and leases (Non-GAAP)	B/D	155		%	171		%	185		%	214		%	206		%

Numbers may not foot due to rounding.


CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited

($s in millions)

	2Q24		1Q24		4Q23		3Q23		2Q23
Adjusted Pre-provision Net Revenue (PPNR)
Pre-tax income (GAAP)	$	260	$	254	$	177	$	194	$	425
Plus notable items (pretax) (GAAP) (a)	5		15		67		10		(130)
Adjusted Pre-tax income (non-GAAP)	$	265	$	269	$	244	$	204	$	295
Plus provision expense (GAAP)	55		50		50		110		50
Adjusted Pre-provision net revenue (PPNR) (non-GAAP)	$	320	$	319	$	294	$	314	$	345
Taxable-equivalent adjustment	4		4		4		4		4
Pre-provision net revenue-Taxable-equivalent (Non-GAAP)	$	324	$	323	$	298	$	318	$	349

(a) Adjusted for those notable items relevant to the amount being adjusted, as detailed on page 8.

Numbers may not foot due to rounding.

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.

TD Transaction: The acquisition of FHN by TD contemplated by a merger agreement signed in February 2022 and terminated in May 2023.

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 excluding securities gains/losses to total revenue - taxable equivalent excluding securities gains/losses.

Efficiency Ratio: Ratio is noninterest expense to total revenue - taxable equivalent excluding securities gains/losses.

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

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, creditFS Work 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.

First Horizon (FHN) 8-KFirst Horizon Corporation's Momentum Continues with Strong Second Quarter 2024 Results