First Horizon 8K 's Momentum Continues with Strong Third Quarter 2024 Results | FHN 16 Oct 24

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

Net Income Available to Common Shareholders of $213 Million or EPS of $0.40;

$224 Million or $0.42 on an Adjusted Basis, both up $0.06 from prior quarter*

3Q24 ROTCE of 12.6% and Adjusted ROTCE of 13.2% with Tangible Book Value per Share of $13.02, up $0.81 QoQ*

MEMPHIS, TN (October 16, 2024) – First Horizon Corporation (NYSE: FHN or “First Horizon”) today reported third quarter net income available to common ("NIAC") shareholders of $213 million or earnings per share of $0.40, compared with second quarter 2024 net income available to common of $184 million or earnings per share of $0.34. Third quarter 2024 results were reduced by a net $11 million after-tax, or $0.02 per share, of notable items compared with $11 million, or $0.02 per share, in second quarter 2024. Excluding notable items, adjusted third quarter 2024 NIAC was $224 million or $0.42 per share compared to $195 million or $0.36 per share in second quarter 2024.

“We delivered 18% growth in earnings per share compared to the prior quarter, driven by strong performance from our counter-cyclical businesses. Our results reflect the strength of our diversified business model and our continued focus on growing and deepening client relationships,” said Chairman, President and Chief Executive Officer Bryan Jordan. “Our credit quality remains stable, with net charge-offs declining for the second consecutive quarter and modest increase in our reserve coverage."

Jordan continued, “We remain intently focused on continuing to support our associates, clients and communities devastated by recent hurricanes throughout the arduous recovery process. I am incredibly proud of the way the First Horizon team prepared for and responded to these catastrophic events, demonstrating profound empathy and concern for our affected associates and an unwavering commitment to serve our clients and communities in extraordinary ways, especially during their greatest times of need.”

Notable Items


Notable Items
Quarterly, Unaudited ($ in millions, except per share data)	3Q24		2Q24		3Q23
Summary of Notable Items:






FDIC special assessment (other noninterest expense)	$	2	$	(2)	$	—
Other notable expenses	(17)		(3)		(10)
Total notable items (pre-tax)	$	(14)	$	(5)	$	(10)
Total notable items (after-tax)	$	(11)	$	(11)	$	(20)

Numbers may not foot due to rounding.

Third quarter pre-tax notable items include an expense credit for the FDIC special assessment of $2 million and other notable items of $17 million, including $15 million of Visa derivative valuation expense related to the escrow funding that occurred in September and $2 million of restructuring costs.

*References to "Adjusted" results exclude notable items and, along with ROTCE and certain other 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

										3Q24 Change vs.
($s in millions, except per share and balance sheet data)	3Q24			2Q24			3Q23			2Q24					3Q23
										$/bp			%		$/bp			%
Income Statement
Interest income - taxable equivalent1	$	1,123		$	1,097		$	1,084		$	26		2	%	$	39		4	%
Interest expense- taxable equivalent1	491			464			475			28			6		17			4
Net interest income- taxable equivalent	631			633			609			(2)			—		22			4
Less: Taxable-equivalent adjustment	4			4			4			—			(10)		—			(2)
Net interest income	627			629			605			(1)			—		23			4
Noninterest income	200			186			173			14			8		27			15
Total revenue	828			815			778			13			2		49			6
Noninterest expense	511			500			474			11			2		37			8
Pre-provision net revenue3	316			315			304			2			1		12			4
Provision for credit losses	35			55			110			(20)			(36)		(75)			(68)
Income before income taxes	281			260			194			22			8		87			45
Provision for income taxes	58			56			52			2			4		6			12
Net income	223			204			142			20			10		81			57
Net income attributable to noncontrolling interest	5			5			5			—			—		—			—
Net income attributable to controlling interest	218			199			137			20			10		81			59
Preferred stock dividends	5			15			8			(10)			(66)		(3)			(37)
Net income available to common shareholders	$	213		$	184		$	129		$	30		16	%	$	84		65	%

Adjusted net income4	$	234		$	208		$	163		$	27		13	%	$	71		43	%
Adjusted net income available to common shareholders4	$	224		$	195		$	150		$	29		15	%	$	74		49	%
Common stock information
EPS	$	0.40		$	0.34		$	0.23		$	0.06		18	%	$	0.17		72	%
Adjusted EPS4	$	0.42		$	0.36		$	0.27		$	0.06		17	%	$	0.15		56	%


Diluted shares8	538			547			561			(9)			(2)	%	(23)			(4)	%
Key performance metrics
Net interest margin6	3.31		%	3.38		%	3.17		%	(7)		bp			14		bp

Efficiency ratio	61.89			61.44			60.96			45					93
Adjusted efficiency ratio4	59.86			60.47			59.43			(61)					43
Effective income tax rate	20.58			21.49			26.67			(91)					(609)
Return on average assets	1.08			1.00			0.68			8					40
Adjusted return on average assets4	1.13			1.02			0.78			11					35
Return on average common equity (“ROCE")	10.1			9.0			6.3			112					382

Return on average tangible common equity (“ROTCE”)4	12.6			11.3			8.0			131					465
Adjusted ROTCE4	13.2			12.0			9.2			125					403
Noninterest income as a % of total revenue	24.06			22.75			22.23			131					183
Adjusted noninterest income as a % of total revenue4	23.95		%	22.64		%	22.11		%	131		bp			184		bp
Balance Sheet (billions)
Average loans	$	62.4		$	62.0		$	61.4		$	0.4		1	%	$	1.0		2	%
Average deposits	66.3			65.0			66.5			1.3			2		(0.3)			—
Average assets	82.4			81.7			83.2			0.6			1		(0.9)			(1)
Average common equity	$	8.4		$	8.2		$	8.2		$	0.2		2	%	$	0.2		3	%
Asset Quality Highlights

Allowance for credit losses to loans and leases4	1.44		%	1.41		%	1.36		%	3		bp			8		bp

Nonperforming loan and leases ratio	0.92		%	0.91		%	0.64		%	1		bp			28		bp
Net charge-off ratio	0.15		%	0.22		%	0.61		%	(6)		bp			(45)		bp
Net Charge-offs	$	24		$	34		$	95		$	(10)		(29)	%	$	(71)		(75)	%
Capital Ratio Highlights (current quarter is an estimate)



Common Equity Tier 1	11.2		%	11.0		%	11.1		%	18		bp			11		bp
Tier 1	12.2			12.1			12.1			19					12
Total Capital	13.9			13.7			13.6			21					26
Tier 1 leverage	10.6		%	10.6		%	10.5		%	3		bp			17		bp

Numbers may not foot due to rounding.

See footnote disclosures on page 19.

Third Quarter 2024 versus Second Quarter 2024

Net interest income

Net interest income (FTE) decreased $2 million to $631 million and net interest margin of 3.31% declined 7 basis points. Both changes were driven by increased deposit costs and higher levels of brokered deposits, partially offset by improvement within loan repricing.

Noninterest income

Noninterest income increased $14 million to $200 million, driven by a $7 million pick up in fixed income production ahead of anticipated rate cuts, as well $5 million of various other noninterest income items, including securities and other gains, higher Federal Home Loan Bank (FHLB) dividends, and bank owned life insurance (BOLI) benefits.

Noninterest expense

Noninterest expense of $511 million increased $11 million from the prior quarter. Third quarter notable items included a $2 million expense credit for the FDIC special assessment, $2 million of restructuring costs, and a $15 million impact related to Visa derivative valuation expenses. Adjusted noninterest expense of $497 million increased $2 million, including $3 million higher deferred compensation. A reduction in incentives from lower retention expense helped offset higher salary and benefits expense associated with higher day count and higher medical expenses.

Loans and leases

Average loan and lease balances of $62.4 billion were up $0.4 billion, or 1%, compared to the prior quarter, while period-end balances of $62.4 billion decreased $0.3 billion or 1% from second quarter 2024. Continued strong performance within loans to mortgage companies (LMC) partially offset reductions to C&I balances that were driven by a portfolio sale. Loan yields of 6.37% improved 3 basis points from wider spreads on new and renewing loans, as well as continued repricing of fixed rate cash flows.

Deposits

Average deposits of $66.3 billion increased $1.3 billion, or 2%, from second quarter 2024. Period-end deposits of $66.6 billion increased $1.8 billion, or 3%, from the prior quarter, as customer interest-bearing deposits increased by almost $1 billion and brokered deposits increased by $0.9 billion. Interest-bearing deposit cost of 3.44% increased 14 basis points from the prior quarter, with a spot rate of ~3.33% at the end of the quarter.

Asset quality

Provision expense of $35 million decreased $20 million from the previous quarter. Net charge-offs were $24 million or 15 basis points. Nonperforming loans of $578 million increased $4 million, with the increase in C&I slightly exceeding declines in consumer and commercial real estate. The ACL to loans ratio increased modestly from 1.41% in second quarter 2024 to 1.44%, driven by $8 million of qualitative reserves for Hurricane Helene and continued grade migration, partially offset by more favorable economic scenarios.

Capital

CET1 ratio of 11.2%, increased from 11.0% in second quarter 2024 as $75 million of excess capital was returned to shareholders through the share repurchase program. FHN repurchased 5 million shares of common stock in third quarter 2024 at an average price paid of $15.80. Year-to-date, FHN repurchased 29 million shares of common stock or $441 million under the $650 million share repurchase program, with an average price paid of $15.03, outperforming the volume weighted average price (VWAP) by $0.12.

Income taxes

The effective tax rate and the adjusted effective tax rate for third quarter 2024 were 20.6% and 20.8%, respectively, compared with an effective tax rate and adjusted tax rate of 21.5% in second 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, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect 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. The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “should,” “is likely,” “will,” “going forward,” and other expressions that indicate future events and trends identify forward-looking statements. 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 furnished 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. Actual results could differ and expectations could change, possibly materially, because of one or more factors, including those factors mentioned in the reports listed above, those factors presented in the exhibits to that form 8-K, and other factors not listed.

Throughout this document, numbers may not foot due to rounding, references to EPS are fully diluted, and capital ratios for the most recent quarter are estimates.

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 October 16, 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 622725. 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 16 until midnight CT on October 30, 2024. To listen to the replay, dial 1-866-813-9403 (U.S. callers); the access code is 856467. A replay of the webcast will also be available on our website on October 16 and will be archived on the site for one year.

First Horizon Corp. (NYSE: FHN), with $82.6 billion in assets as of September 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

																3Q24 Change vs.
($s in millions, except per share data)	3Q24			2Q24			1Q24			4Q23			3Q23			2Q24				3Q23
																$		%		$		%
Interest income - taxable equivalent1	$	1,123		$	1,097		$	1,076		$	1,090		$	1,084		$	26	2	%	$	39	4	%
Interest expense- taxable equivalent1	491			464			448			469			475			28		6		17		4
Net interest income- taxable equivalent	631			633			628			621			609			(2)		—		22		4
Less: Taxable-equivalent adjustment	4			4			4			4			4			—		(10)		—		(2)
Net interest income	627			629			625			617			605			(1)		—		23		4
Noninterest income:
Fixed income	47			40			52			37			28			7		16		19		68
Mortgage banking	9			10			9			5			7			(1)		(12)		2		29
Brokerage, trust, and insurance	39			38			36			36			34			1		4		6		18
Service charges and fees	59			58			57			59			60			—		—		(1)		(2)
Card and digital banking fees	19			20			19			16			20			(1)		(3)		(1)		(5)
Deferred compensation income	6			3			9			6			—			3		107		6		NM

Other noninterest income	21			17			14			23			25			5		29		(3)		(13)
Total noninterest income	200			186			194			183			173			14		8		27		15
Total revenue	828			815			819			800			778			13		2		49		6
Noninterest expense:
Personnel expense:
Salaries and benefits	199			198			200			190			188			2		1		11		6
Incentives and commissions	76			79			92			82			77			(3)		(3)		(1)		(2)
Deferred compensation expense	6			3			9			7			—			3		114		7		NM
Total personnel expense	282			279			301			279			266			2		1		16		6
Occupancy and equipment2	73			72			72			71			67			2		3		6		9
Outside services	74			78			65			84			69			(4)		(5)		5		7
Amortization of intangible assets	11			11			11			12			12			—		—		(1)		(8)
Other noninterest expense	71			60			67			127			60			11		19		11		19
Total noninterest expense	511			500			515			572			474			11		2		37		8
Pre-provision net revenue3	316			315			304			227			304			2		1		12		4
Provision for credit losses	35			55			50			50			110			(20)		(36)		(75)		(68)
Income before income taxes	281			260			254			177			194			22		8		87		45
Provision for income taxes	58			56			57			(11)			52			2		4		6		12
Net income	223			204			197			188			142			20		10		81		57
Net income attributable to noncontrolling interest	5			5			5			5			5			—		—		—		—
Net income attributable to controlling interest	218			199			192			183			137			20		10		81		59
Preferred stock dividends	5			15			8			8			8			(10)		(66)		(3)		(37)
Net income available to common shareholders	$	213		$	184		$	184		$	175		$	129		$	30	16	%	$	84	65	%
Common Share Data
EPS	$	0.40		$	0.34		$	0.33		$	0.31		$	0.23		$	0.06	18	%	$	0.17	73	%
Basic shares	534			544			555			559			559			(10)		(2)		(24)		(4)
Diluted EPS	$	0.40		$	0.34		$	0.33		$	0.31		$	0.23		$	0.06	18		$	0.17	72
Diluted shares8	538			547			558			561			561			(9)		(2)	%	(23)		(4)	%

Effective tax rate	20.6		%	21.5		%	22.5		%	(6.2)		%	26.7		%

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


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


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


Net interest income (FTE)1	$	631		$	633		$	628		$	621		$	609		$	(2)	—	%	$	22	4	%
Adjusted noninterest income:
Fixed income	47			40			52			37			28			7		16		19		68
Mortgage banking	9			10			9			5			7			(1)		(12)		2		29
Brokerage, trust, and insurance	39			38			36			36			34			1		4		6		18
Service charges and fees	59			58			57			59			60			—		—		(1)		(2)
Card and digital banking fees	19			20			19			16			20			(1)		(3)		(1)		(5)
Deferred compensation income	6			3			9			6			—			3		107		6		NM

Adjusted other noninterest income	21			17			14			20			25			5		29		(3)		(13)
Adjusted total noninterest income	$	200		$	186		$	194		$	179		$	173		$	14	8	%	$	27	15	%
Total revenue (FTE)1	$	832		$	819		$	823		$	800		$	782		$	12	2	%	$	49	6	%

Adjusted noninterest expense:
Adjusted personnel expense:
Adjusted salaries and benefits	$	199		$	198		$	199		$	190		$	188		$	2	1	%	$	11	6	%
Adjusted Incentives and commissions	76			78			87			80			68			(2)		(3)		7		11
Deferred compensation expense	6			3			9			7			—			3		114		7		NM
Adjusted total personnel expense	281			279			295			277			256			2		1		26		10
Adjusted occupancy and equipment2	73			72			72			71			67			2		3		6		8
Adjusted outside services	73			75			65			84			69			(2)		(3)		3		5
Amortization of intangible assets	11			11			11			12			12			—		—		(1)		(8)
Adjusted other noninterest expense	59			58			57			59			60			—		1		(2)		(3)
Adjusted total noninterest expense	$	497		$	495		$	500		$	502		$	465		$	2	—	%	$	32	7	%

Adjusted pre-provision net revenue4	$	335		$	324		$	323		$	298		$	318		$	11	3	%	$	17	5	%

Provision for credit losses	$	35		$	55		$	50		$	50		$	110		$	(20)	(36)	%	$	(75)	(68)	%







Adjusted net income available to common shareholders	$	224		$	195		$	195		$	178		$	150		$	29	15	%	$	74	49	%

Adjusted Common Share Data


Adjusted diluted EPS	$	0.42		$	0.36		$	0.35		$	0.32		$	0.27		$	0.06	17	%	$	0.15	56	%
Diluted shares8	538			547			558			561			561			(9)		(2)	%	(23)		(4)	%

Adjusted effective tax rate	20.8		%	21.5		%	22.5		%	21.7		%	20.1		%
Adjusted ROTCE	13.2		%	12.0		%	11.6		%	11.1		%	9.2		%
Adjusted efficiency ratio	59.9		%	60.5		%	60.8		%	62.8		%	59.4		%

Numbers may not foot due to rounding.

See footnote disclosures on page 19.


NOTABLE ITEMS
Quarterly, Unaudited



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




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		(2)		(10)		(68)		—
Other notable expenses *	(17)		(3)		(5)		—		(10)
Total notable items (pre-tax)	$	(14)	$	(5)	$	(15)	$	(67)	$	(10)
Tax-related notable items **	$	—	$	—	$	—	$	48	$	(13)
Preferred Stock Dividend ***	$	—	$	(7)	$	—	$	—	$	—

Numbers may not foot due to rounding

* 3Q24, 2Q24, 1Q24 and 3Q23 include $2 million, $3 million, $5 million and $10 million of restructuring expenses; 3Q24 includes $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)	3Q24		2Q24		1Q24		4Q23		3Q23
Impacts of Notable Items:



Noninterest income:







Other noninterest income	$	—	$	—	$	—	$	(4)	$	—
Total noninterest income	$	—	$	—	$	—	$	(4)	$	—


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

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

Outside services	(1)		(3)		—		—		—

Other noninterest expense	(13)		(2)		(10)		(68)		—
Total noninterest expense	$	(14)	$	(5)	$	(15)	$	(70)	$	(10)







Income before income taxes	$	14	$	5	$	15	$	67	$	10
Provision for income taxes *	4		1		3		64		(11)

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

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
																3Q24 Change vs.
	3Q24			2Q24			1Q24			4Q23			3Q23			2Q24					3Q23
FINANCIAL RATIOS																$/bp			%		$/bp			%
Net interest margin6	3.31		%	3.38		%	3.37		%	3.27		%	3.17		%	(7)		bp			14		bp

Return on average assets	1.08		%	1.00		%	0.97		%	0.91		%	0.68		%	8					40
Adjusted return on average assets4	1.13		%	1.02		%	1.03		%	0.92		%	0.78		%	11					35
Return on average common equity (“ROCE”)	10.10		%	8.98		%	8.76		%	8.60		%	6.28		%	112					382

Return on average tangible common equity (“ROTCE”)4	12.60		%	11.29		%	10.95		%	10.89		%	7.95		%	131					465
Adjusted ROTCE4	13.24		%	11.99		%	11.65		%	11.05		%	9.21		%	125					403
Noninterest income as a % of total revenue	24.06		%	22.75		%	23.72		%	23.33		%	22.23		%	131					183
Adjusted noninterest income as a % of total revenue4	23.95		%	22.64		%	23.61		%	22.32		%	22.11		%	131					184
Efficiency ratio	61.89		%	61.44		%	62.92		%	71.14		%	60.96		%	45					93
Adjusted efficiency ratio4	59.86		%	60.47		%	60.78		%	62.84		%	59.43		%	(61)					43
Allowance for credit losses to loans and leases4	1.44		%	1.41		%	1.40		%	1.40		%	1.36		%	(9)					(4)

CAPITAL DATA
CET1 capital ratio*	11.2		%	11.0		%	11.3		%	11.4		%	11.1		%	18		bp			11		bp
Tier 1 capital ratio*	12.2		%	12.1		%	12.3		%	12.4		%	12.1		%	19		bp			12		bp
Total capital ratio*	13.9		%	13.7		%	13.9		%	14.0		%	13.6		%	21		bp			26		bp
Tier 1 leverage ratio*	10.6		%	10.6		%	10.8		%	10.7		%	10.5		%	3		bp			17		bp
Risk-weighted assets (“RWA”) (billions)*	$	71.4		$	71.9		$	71.1		$	71.1		$	71.9		$	(0.5)		(1)	%	$	(0.4)		(1)	%
Total equity to total assets	11.27		%	10.89		%	11.21		%	11.38		%	10.65		%	38		bp			62		bp
Tangible common equity/tangible assets (“TCE/TA”)4	8.56		%	8.14		%	8.33		%	8.48		%	7.76		%	42		bp			80		bp
Period-end shares outstanding (millions)8	532			537			549			559			559			(5)			(1)	%	(27)			(5)	%
Cash dividends declared per common share	$	0.15		$	0.15		$	0.15		$	0.15		$	0.15		$	—		—	%	$	—		—	%
Book value per common share	$	16.15		$	15.34		$	15.23		$	15.17		$	14.28		$	0.81		5	%	$	1.87		13	%
Tangible book value per common share4	$	13.02		$	12.22		$	12.16		$	12.13		$	11.22		$	0.81		7	%	$	1.80		16	%


SELECTED BALANCE SHEET DATA
Loans-to-deposit ratio (period-end balances)	93.80		%	96.89		%	93.93		%	93.18		%	92.18		%	(309)		bp			162		bp
Loans-to-deposit ratio (average balances)	94.19		%	95.49		%	93.54		%	91.53		%	92.35		%	(130)		bp			184		bp
Full-time equivalent associates	7,186			7,297			7,327			7,277			7,340			(111)			(2)	%	(154)			(2)	%

*Current quarter is an estimate.

See footnote disclosures on page 19.

CONSOLIDATED PERIOD-END BALANCE SHEET

Quarterly, Unaudited


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

Loans and leases:
Commercial, financial, and industrial (C&I)	$	33,092	$	33,452	$	32,911	$	32,632	$	33,163	$	(361)	(1)	%	$	(71)	—	%
Commercial real estate	14,705		14,669		14,426		14,216		14,121		37		—		585		4
Total Commercial	47,797		48,121		47,337		46,849		47,283		(324)		(1)		514		1
Consumer real estate	13,961		13,909		13,645		13,650		13,685		51		—		276		2
Credit card and other5	688		751		771		793		809		(63)		(8)		(122)		(15)
Total Consumer	14,648		14,660		14,416		14,443		14,494		(12)		—		154		1
Loans and leases, net of unearned income	62,445		62,781		61,753		61,292		61,778		(335)		(1)		668		1
Loans held for sale	494		471		395		502		613		23		5		(119)		(19)
Investment securities	9,530		9,221		9,460		9,714		9,435		308		3		95		1
Trading securities	1,549		1,249		1,161		1,412		1,231		300		24		319		26
Interest-bearing deposits with banks	1,286		1,452		1,885		1,328		1,917		(167)		(11)		(631)		(33)
Federal funds sold and securities purchased under agreements to resell	1,008		487		817		719		416		520		107		592		142
Total interest earning assets	76,311		75,662		75,470		74,967		75,389		650		1		923		1
Cash and due from banks	1,028		969		749		1,012		1,022		59		6		6		1
Goodwill and other intangible assets, net	1,663		1,674		1,685		1,696		1,709		(11)		(1)		(45)		(3)
Premises and equipment, net	572		584		586		590		590		(12)		(2)		(19)		(3)
Allowance for loan and lease losses	(823)		(821)		(787)		(773)		(760)		(2)		—		(63)		(8)
Other assets	3,883		4,162		4,094		4,169		4,584		(279)		(7)		(700)		(15)
Total assets	$	82,635	$	82,230	$	81,799	$	81,661	$	82,533	$	405	—	%	$	101	—	%

Liabilities and Shareholders' Equity:
Deposits:
Savings	$	26,634	$	25,437	$	25,847	$	25,082	$	25,590	$	1,196	5	%	$	1,044	4	%
Time deposits	8,326		7,163		6,297		6,804		7,783		1,163		16		543		7
Other interest-bearing deposits	15,403		15,845		17,186		16,689		15,817		(442)		(3)		(414)		(3)
Total interest-bearing deposits	50,363		48,446		49,331		48,576		49,190		1,917		4		1,173		2
Trading liabilities	767		423		467		509		366		345		82		401		110
Federal funds purchased and securities sold under agreements to repurchase	1,910		2,572		2,137		2,223		2,015		(661)		(26)		(105)		(5)
Short-term borrowings	675		1,943		566		326		492		(1,269)		(65)		183		37
Term borrowings	1,202		1,175		1,165		1,150		1,157		27		2		45		4
Total interest-bearing liabilities	54,918		54,559		53,665		52,783		53,220		359		1		1,697		3
Noninterest-bearing deposits	16,212		16,348		16,410		17,204		17,825		(136)		(1)		(1,614)		(9)
Other liabilities	2,189		2,368		2,550		2,383		2,694		(179)		(8)		(505)		(19)
Total liabilities	73,318		73,275		72,626		72,370		73,740		44		—		(421)		(1)
Shareholders' Equity:
Preferred stock	426		426		520		520		520		—		—		(94)		(18)
Common stock	333		336		343		349		349		(3)		(1)		(17)		(5)
Capital surplus	4,947		5,007		5,214		5,351		5,337		(60)		(1)		(391)		(7)
Retained earnings	4,304		4,172		4,072		3,964		3,874		132		3		430		11
Accumulated other comprehensive loss, net	(989)		(1,281)		(1,271)		(1,188)		(1,582)		292		23		593		37
Combined shareholders' equity	9,021		8,660		8,878		8,996		8,498		361		4		523		6
Noncontrolling interest	295		295		295		295		295		—		—		—		—
Total shareholders' equity	9,316		8,955		9,173		9,291		8,794		361		4		523		6
Total liabilities and shareholders' equity	$	82,635	$	82,230	$	81,799	$	81,661	$	82,533	$	405	—	%	$	101	—	%
Memo:
Total deposits	$	66,575	$	64,794	$	65,741	$	65,780	$	67,015	$	1,781	3	%	$	(440)	(1)	%
Loans to mortgage companies	$	3,244	$	2,934	$	2,366	$	2,024	$	2,237	$	310	11	%	$	1,007	45	%
Unfunded Loan Commitments:
Commercial	$	18,180	$	18,781	$	19,996	$	21,328	$	22,063	$	(601)	(3)	%	$	(3,883)	(18)	%
Consumer	$	4,281	$	4,334	$	4,383	$	4,401	$	4,432	$	(53)	(1)	%	$	(150)	(3)	%

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

CONSOLIDATED AVERAGE BALANCE SHEET

Quarterly, Unaudited


											3Q24 Change vs.
(In millions)	3Q24		2Q24		1Q24		4Q23		3Q23		2Q24				3Q23
Assets:											$		%		$		%
Loans and leases:
Commercial, financial, and industrial (C&I)	$	33,074	$	32,909	$	32,389	$	32,520	$	33,042	$	165	1	%	$	32	—	%
Commercial real estate	14,684		14,576		14,367		14,210		13,999		108		1		685		5
Total Commercial	47,758		47,485		46,756		46,730		47,041		273		1		717		2
Consumer real estate	13,935		13,783		13,615		13,664		13,575		152		1		360		3
Credit card and other5	720		761		781		802		816		(42)		(5)		(97)		(12)
Total Consumer	14,654		14,544		14,396		14,466		14,391		110		1		263		2
Loans and leases, net of unearned income	62,413		62,029		61,152		61,197		61,432		384		1		981		2
Loans held-for-sale	491		462		454		547		782		29		6		(291)		(37)
Investment securities	9,400		9,261		9,590		9,394		9,811		140		2		(410)		(4)
Trading securities	1,469		1,367		1,245		1,225		1,099		102		7		370		34
Interest-bearing deposits with banks	1,741		1,449		1,793		2,556		2,867		293		20		(1,126)		(39)
Federal funds sold and securities purchased under agreements to resell	607		676		544		529		315		(70)		(10)		291		92
Total interest earning assets	76,121		75,243		74,778		75,448		76,306		878		1		(184)		—
Cash and due from banks	905		904		948		994		997		1		—		(92)		(9)
Goodwill and other intangibles assets, net	1,669		1,680		1,691		1,702		1,714		(11)		(1)		(46)		(3)
Premises and equipment, net	578		585		587		589		592		(7)		(1)		(15)		(3)
Allowances for loan and lease losses	(827)		(810)		(789)		(772)		(766)		(17)		(2)		(61)		(8)
Other assets	3,921		4,120		4,028		4,352		4,377		(198)		(5)		(456)		(10)
Total assets	$	82,366	$	81,721	$	81,243	$	82,313	$	83,220	$	646	1	%	$	(854)	(1)	%

Liabilities and shareholders' equity:
Deposits:
Savings	$	26,062	$	25,462	$	25,390	$	25,799	$	24,963	$	600	2	%	$	1,099	4	%
Time deposits	8,167		6,683		6,628		7,372		8,087		1,484		22		80		1
Other interest-bearing deposits	15,923		16,484		16,735		16,344		15,329		(561)		(3)		594		4
Total interest-bearing deposits	50,153		48,629		48,753		49,515		48,379		1,524		3		1,774		4
Trading liabilities	576		605		462		386		276		(30)		(5)		300		109
Federal funds purchased and securities sold under agreements to repurchase	2,132		2,208		2,014		1,982		1,970		(77)		(3)		162		8
Short-term borrowings	884		1,267		537		437		1,790		(383)		(30)		(906)		(51)
Term borrowings	1,188		1,170		1,156		1,156		1,161		18		2		27		2
Total interest-bearing liabilities	54,931		53,879		52,921		53,475		53,575		1,053		2		1,356		3
Noninterest-bearing deposits	16,111		16,332		16,626		17,347		18,145		(221)		(1)		(2,034)		(11)
Other liabilities	2,196		2,561		2,445		2,585		2,522		(365)		(14)		(326)		(13)
Total liabilities	73,238		72,772		71,992		73,407		74,242		467		1		(1,004)		(1)
Shareholders' Equity:
Preferred stock	426		426		520		520		520		—		—		(94)		(18)
Common stock	334		340		347		349		349		(6)		(2)		(15)		(4)
Capital surplus	4,973		5,127		5,301		5,343		5,330		(155)		(3)		(358)		(7)
Retained earnings	4,254		4,122		4,028		3,935		3,861		132		3		392		10
Accumulated other comprehensive loss, net	(1,154)		(1,361)		(1,240)		(1,538)		(1,378)		208		15		225		16
Combined shareholders' equity	8,833		8,654		8,956		8,610		8,683		179		2		150		2
Noncontrolling interest	295		295		295		295		295		—		—		—		—
Total shareholders' equity	9,128		8,949		9,251		8,905		8,978		179		2		150		2
Total liabilities and shareholders' equity	$	82,366	$	81,721	$	81,243	$	82,313	$	83,220	$	646	1	%	$	(854)	(1)	%
Memo:
Total deposits	$	66,263	$	64,960	$	65,379	$	66,862	$	66,523	$	1,303	2	%	$	(260)	—	%
Loans to mortgage companies	$	2,875	$	2,440	$	1,847	$	1,948	$	2,353	$	435	18	%	$	522	22	%

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
																					3Q24 Change vs.
	3Q24				2Q24				1Q24				4Q23				3Q23				2Q24					3Q23
(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	$	813	6.78	%	$	800	6.78	%	$	782	6.73	%	$	783	6.65	%	$	779	6.58	%	$	13		2	%	$	34		4	%


Consumer	186		5.05		179		4.91		173		4.80		171		4.71		165		4.55		7			4		21			13
Loans and leases, net of unearned income	999		6.37		978		6.34		955		6.28		954		6.19		944		6.10		20			2		55			6
Loans held-for-sale	10		7.77		9		7.50		9		7.80		11		8.34		15		7.88		1			10		(6)			(38)
Investment securities	61		2.58		60		2.58		61		2.54		61		2.62		62		2.54		1			2		(1)			(2)
Trading securities	22		6.05		22		6.30		20		6.48		20		6.63		19		7.03		1			3		3			15
Interest-bearing deposits with banks	24		5.40		20		5.46		24		5.46		35		5.46		39		5.34		4			20		(15)			(39)
Federal funds sold and securities purchased under agreements	8		5.23		9		5.31		7		5.16		7		5.32		4		5.06		(1)			(11)		4			98
Interest income	$	1,123	5.88	%	$	1,097	5.86	%	$	1,076	5.78	%	$	1,089	5.74	%	$	1,084	5.64	%	$	26		2	%	$	39		4	%

Interest bearing liabilities/Interest expense:
Interest-bearing deposits:
Savings	$	225	3.43	%	$	208	3.29	%	$	206	3.27	%	$	222	3.42	%	$	219	3.48	%	$	17		8	%	$	6		3	%
Time deposits	95		4.63		74		4.45		73		4.42		82		4.42		89		4.35		21			29		6			7
Other interest-bearing deposits	114		2.85		117		2.86		119		2.86		116		2.81		102		2.64		(3)			(3)		12			12
Total interest-bearing deposits	434		3.44		399		3.30		398		3.28		420		3.37		409		3.36		35			9		25			6
Trading liabilities	6		4.13		7		4.46		5		4.31		4		4.59		3		4.20		(1)			(11)		3			105
Federal funds purchased and securities sold under agreements to repurchase	23		4.20		24		4.36		21		4.24		22		4.35		21		4.24		(1)			(6)		1			7
Short-term borrowings	12		5.52		17		5.48		7		5.43		6		5.41		24		5.42		(5)			(29)		(12)			(50)
Term borrowings	17		5.64		17		5.64		17		5.71		17		5.75		17		5.82		—			1		—			(1)
Interest expense	491		3.56		464		3.46		448		3.40		469		3.48		475		3.52		28			6		17			4
Net interest income - tax equivalent basis	631		2.32		633		2.40		628		2.38		621		2.26		609		2.12		(2)			—		22			4
Fully taxable equivalent adjustment	(4)		0.99		(4)		0.98		(4)		0.99		(4)		1.01		(4)		1.05		—			10		—			2
Net interest income	$	627	3.31	%	$	629	3.38	%	$	625	3.37	%	$	617	3.27	%	$	605	3.17	%	$	(1)		—	%	$	23		4	%

Memo:
Total loan yield			6.37	%			6.34	%			6.28	%			6.19	%			6.10	%	3		bp			27		bp
Total deposit cost			2.61	%			2.47	%			2.45	%			2.49	%			2.44	%	14		bp			17		bp
Total funding cost			2.75	%			2.66	%			2.59	%			2.63	%			2.63	%	9		bp			12		bp
Average loans and leases, net of unearned income	$	62,413			$	62,029			$	61,152			$	61,197			$	61,432			$	384		1	%	$	981		2	%
Average deposits	66,263				64,960				65,379				66,862				66,523				1,303			2	%	(260)			—	%
Average funded liabilities	71,042				70,210				69,547				70,822				71,720				$	831		1	%	$	(678)		(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															3Q24 change vs.
(In millions, except ratio data)	3Q24			2Q24			1Q24			4Q23			3Q23			2Q24				3Q23
																$		%		$		%
Nonperforming loans and leases
Commercial, financial, and industrial (C&I)	$	190		$	167		$	206		$	184		$	123		$	22	13	%	$	67	54	%
Commercial real estate	259			261			157			136			125			(2)		(1)		134		NM
Consumer real estate	128			143			140			139			145			(15)		(11)		(17)		(12)
Credit card and other5	1			2			2			2			2			—		(26)		(1)		(33)
Total nonperforming loans and leases	$	578		$	574		$	505		$	462		$	394		$	4	1	%	$	183	47	%

Asset Quality Ratio
Nonperforming loans and leases to loans and leases
Commercial, financial, and industrial (C&I)	0.57		%	0.50		%	0.63		%	0.57		%	0.37		%
Commercial real estate	1.76			1.78			1.09			0.96			0.88
Consumer real estate	0.92			1.03			1.02			1.02			1.06
Credit card and other5	0.20			0.25			0.20			0.30			0.26
Total nonperforming loans and leases to loans and leases	0.92		%	0.91		%	0.82		%	0.75		%	0.64		%

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										3Q24 change vs.
(In millions)	3Q24		2Q24		1Q24		4Q23		3Q23		2Q24				3Q23
											$		%		$		%
Loans and leases 90 days or more past due and accruing
Commercial, financial, and industrial (C&I)	$	1	$	—	$	—	$	1	$	3	$	1	13	%	$	(2)	(81)	%
Commercial real estate	—		—		—		—		—		—		NM		—		NM
Consumer real estate	13		3		6		17		12		10		NM		2		14
Credit card and other5	3		2		3		3		3		1		25		—		13
Total loans and leases 90 days or more past due and accruing	$	17	$	6	$	10	$	21	$	17	$	11	NM		$	—	NM

Numbers may not foot due to rounding.

See footnote disclosures on page 19.


CONSOLIDATED NET CHARGE-OFFS (RECOVERIES)
Quarterly, Unaudited

	As of															3Q24 change vs.
(In millions, except ratio data)	3Q24			2Q24			1Q24			4Q23			3Q23			2Q24				3Q23
Charge-off, Recoveries and Related Ratios																$		%		$		%
Gross Charge-offs
Commercial, financial, and industrial (C&I) *	$	12		$	24		$	28		$	31		$	92		$	(12)	(48)	%	$	(79)	(86)	%
Commercial real estate	15			19			12			2			5			(4)		(20)		10		NM
Consumer real estate	1			1			—			1			1			—		(40)		—		(2)
Credit card and other5	5			5			6			6			7			—		4		(2)		(30)
Total gross charge-offs	$	33		$	49		$	46		$	41		$	104		$	(16)	(32)	%	$	(71)	(68)	%
Gross Recoveries
Commercial, financial, and industrial (C&I)	$	(4)		$	(11)		$	(3)		$	(2)		$	(5)		$	7	61	%	$	1	12	%
Commercial real estate	(1)			—			—			—			—			(1)		NM		—		(87)
Consumer real estate	(3)			(2)			(1)			(2)			(2)			—		(3)		—		(15)
Credit card and other5	(1)			(1)			(2)			(1)			(1)			—		(7)		—		(14)
Total gross recoveries	$	(9)		$	(15)		$	(6)		$	(5)		$	(9)		$	6	40	%	$	—	(3)	%
Net Charge-offs (Recoveries)
Commercial, financial, and industrial (C&I) *	$	8		$	13		$	25		$	29		$	86		$	(5)	(37)	%	$	(78)	(91)	%
Commercial real estate	14			19			12			2			4			(5)		(24)		10		NM
Consumer real estate	(2)			(1)			(1)			—			(2)			—		(33)		—		(22)
Credit card and other5	3			3			4			5			6			—		2		(2)		(39)
Total net charge-offs	$	24		$	34		$	40		$	36		$	95		$	(10)	(29)	%	$	(71)	(75)	%

Annualized Net Charge-off (Recovery) Rates
Commercial, financial, and industrial (C&I) *	0.10		%	0.16		%	0.31		%	0.36		%	1.04		%
Commercial real estate	0.39			0.53			0.35			0.06			0.12
Consumer real estate	(0.05)			(0.04)			(0.03)			—			(0.05)
Credit card and other5	1.92			1.79			1.98			2.36			2.77
Total loans and leases	0.15		%	0.22		%	0.27		%	0.23		%	0.61		%

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										3Q24 Change vs.
(In millions)	3Q24		2Q24		1Q24		4Q23		3Q23		2Q24				3Q23
Summary of Changes in the Components of the Allowance For Credit Losses											$		%		$		%
Allowance for loan and lease losses - beginning	$	821	$	787	$	773	$	760	$	737	$	34	4	%	$	84	11	%













Charge-offs:
Commercial, financial, and industrial (C&I) *	(12)		(24)		(28)		(31)		(92)		12		48		79		86
Commercial real estate	(15)		(19)		(12)		(2)		(5)		4		20		(10)		NM
Consumer real estate	(1)		(1)		—		(1)		(1)		—		40		—		2
Credit card and other5	(5)		(5)		(6)		(6)		(7)		—		(4)		2		30
Total charge-offs	(33)		(49)		(46)		(41)		(104)		16		32		71		68
Recoveries:
Commercial, financial, and industrial (C&I)	4		11		3		2		5		(7)		(61)		(1)		(12)
Commercial real estate	1		—		—		—		—		1		NM		—		87
Consumer real estate	3		2		1		2		2		—		3		—		15
Credit card and other5	1		1		2		1		1		—		7		—		14
Total Recoveries	9		15		6		5		9		(6)		(40)		—		3
Provision for loan and lease losses:
Commercial, financial, and industrial (C&I) *	15		9		34		33		96		6		65		(81)		(84)
Commercial real estate	11		59		21		6		14		(48)		(81)		(3)		(19)
Consumer real estate	(3)		(1)		(3)		5		5		(2)		NM		(8)		NM
Credit card and other5	2		—		3		5		3		2		NM		(1)		(25)
Total provision for loan and lease losses:	26		68		54		49		118		(42)		(62)		(92)		(78)
Allowance for loan and lease losses - ending	$	823	$	821	$	787	$	773	$	760	$	2	—	%	$	63	8	%

Reserve for unfunded commitments - beginning	$	66	$	79	$	83	$	82	$	90	$	(13)	(17)	%	$	(24)	(27)	%
Cumulative effect of change in accounting principle	—		—		—		—		—		—		NM		—		NM
Acquired reserve for unfunded commitments	—		—		—		—		—		—		NM		—		NM
Provision for unfunded commitments	9		(13)		(4)		1		(8)		22		NM		17		NM
Reserve for unfunded commitments - ending	$	75	$	66	$	79	$	83	$	82	$	9	14	%	$	(7)	(9)	%
Total allowance for credit losses- ending	$	897	$	887	$	865	$	856	$	842	$	11	—	%	$	56	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
	3Q24		2Q24		1Q24		4Q23		3Q23

Allowance for loans and lease losses to loans and leases
Commercial, financial, and industrial (C&I)	1.06	%	1.03	%	1.06	%	1.04	%	1.01	%
Commercial real estate	1.48	%	1.51	%	1.26	%	1.21	%	1.19	%
Consumer real estate	1.65	%	1.66	%	1.69	%	1.71	%	1.67	%
Credit card and other5	3.39	%	3.26	%	3.57	%	3.63	%	3.48	%
Total allowance for loans and lease losses to loans and leases	1.32	%	1.31	%	1.27	%	1.26	%	1.23	%
Allowance for loans and lease losses to nonperforming loans and leases
Commercial, financial, and industrial (C&I)	185	%	205	%	168	%	184	%	273	%
Commercial real estate	84	%	85	%	115	%	126	%	135	%
Consumer real estate	180	%	161	%	165	%	168	%	158	%
Credit card and other5	1,672	%	1,295	%	1,766	%	1,202	%	1,364	%
Total allowance for loans and lease losses to nonperforming loans and leases	142	%	143	%	156	%	167	%	193	%

Allowance for credit losses ratios
Total allowance for credit losses to loans and leases4	1.44	%	1.41	%	1.40	%	1.40	%	1.36	%
Total allowance for credit losses to nonperforming loans and leases4	155	%	155	%	171	%	185	%	214	%

See footnote disclosures on page 19.

REGIONAL BANKING

Quarterly, Unaudited


																3Q24 Change vs.
	3Q24			2Q24			1Q24			4Q23			3Q23			2Q24					3Q23
																$/bp			%		$/bp			%
Income Statement (millions)
Net interest income	$	517		$	522		$	532		$	549		$	558		$	(5)		(1)	%	$	(41)		(7)	%
Noninterest income	113			109			105			106			106			4			4		7			7
Total revenue	630			631			637			655			664			(1)			—		(34)			(5)
Noninterest expense	329			333			324			334			311			(5)			(1)		18			6
Pre-provision net revenue3	302			298			314			321			353			4			1		(52)			(15)
Provision for credit losses	33			57			28			28			112			(24)			(42)		(79)			(70)
Income before income tax expense	269			241			286			293			241			28			12		27			11
Income tax expense	63			55			67			69			56			7			13		7			12
Net income	$	206		$	185		$	219		$	224		$	185		$	21		11	%	$	21		11	%

Average Balances (billions)
Total loans and leases	$	41.0		$	41.0		$	40.6		$	40.6		$	40.6		$	—		—	%	$	0.4		1	%
Interest-earning assets	41.0			41.0			40.6			40.6			40.6			—			—		0.4			1
Total assets	43.4			43.5			43.1			43.2			43.2			(0.1)			—		0.2			—
Total deposits	57.6			57.5			57.8			58.6			58.0			0.1			—		(0.4)			(1)

Key Metrics
Net interest margin6	5.04		%	5.15		%	5.30		%	5.39		%	5.48		%	(11)		bp			(44)		bp
Efficiency ratio	52.12		%	52.80		%	50.79		%	50.98		%	46.78		%	(68)		bp			534		bp
Loans-to-deposits ratio (period-end balances)	71.21		%	72.05		%	69.82		%	68.76		%	69.68		%	(84)		bp			153		bp
Loans-to-deposits ratio (average-end balances)	71.22		%	71.32		%	70.18		%	69.34		%	70.03		%	(10)		bp			119		bp
Return on average assets (annualized)	1.89		%	1.71		%	2.04		%	2.06		%	1.70		%	18		bp			19		bp
Return on allocated equity7	23.71		%	21.47		%	25.40		%	25.89		%	21.34		%	224		bp			237		bp
Financial center locations	416			418			418			418			418			(2)					(2)

Numbers may not foot 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


																3Q24 Change vs.
	3Q24			2Q24			1Q24			4Q23			3Q23			2Q24					3Q23
																$/bp			%		$/bp			%
Income Statement (millions)
Net interest income	$	166		$	158		$	153		$	153		$	160		$	8		5	%	$	5		3	%
Noninterest income	67			64			72			64			49			3			5		19			38
Total revenue	233			222			224			217			209			11			5		24			11
Noninterest expense	104			103			104			101			96			2			2		9			9
Pre-provision net revenue3	129			119			120			116			113			9			8		15			13
Provision for credit losses	3			1			23			31			2			2			NM		—			8
Income before income tax expense	126			119			97			85			111			7			6		15			14
Income tax expense	31			29			24			21			27			2			6		4			14
Net income	$	95		$	90		$	74		$	64		$	84		$	6		6	%	$	11		14	%

Average Balances (billions)
Total loans and leases	$	21.1		$	20.7		$	20.2		$	20.1		$	20.4		$	0.4		2	%	$	0.7		3	%
Interest-earning assets	23.7			23.3			22.4			22.4			22.7			0.4			2		1.0			5
Total assets	24.9			24.6			23.8			23.9			24.1			0.4			1		0.9			4
Total deposits	4.0			3.9			4.0			4.2			4.1			0.1			3		(0.1)			(2)

Key Metrics
Fixed income product average daily revenue (thousands)	$	593		$	488		$	731		$	463		$	301		$	105		22	%	$	292		97	%
Net interest margin6	2.79		%	2.73		%	2.74		%	2.71		%	2.81		%	6		bp			(2)		bp
Efficiency ratio	44.79		%	46.23		%	46.41		%	46.62		%	45.82		%	(144)		bp			(103)		bp
Loans-to-deposits ratio (period-end balances)	505		%	551		%	539		%	524		%	493		%	(4,560)		bp			1,192		bp
Loans-to-deposits ratio (average-end balances)	530		%	535		%	506		%	482		%	501		%	(499)		bp			2,838		bp
Return on average assets (annualized)	1.52		%	1.47		%	1.25		%	1.06		%	1.39		%	5		bp			13		bp
Return on allocated equity7	17.19		%	16.88		%	14.12		%	12.39		%	17.19		%	31		bp			—		bp

Numbers may not foot 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


											3Q24 Change vs.
	3Q24		2Q24		1Q24		4Q23		3Q23		2Q24				3Q23
											$		%		$		%
Income Statement (millions)
Net interest income/(expense)	$	(55)	$	(51)	$	(60)	$	(85)	$	(113)	$	(4)	(8)	%	$	58	51	%
Noninterest income	19		13		18		13		18		7		54		1		5
Total revenues	(36)		(39)		(43)		(72)		(95)		3		7		59		62
Noninterest expense	78		64		87		137		68		14		22		11		16
Pre-provision net revenue3	(114)		(103)		(130)		(210)		(163)		(11)		(11)		49		30
Provision for credit losses	(1)		(3)		(1)		(9)		(5)		2		78		4		85
Income before income tax expense	(114)		(100)		(129)		(200)		(158)		(14)		(14)		45		28
Income tax expense (benefit)	(36)		(29)		(34)		(100)		(31)		(7)		(24)		(5)		(15)
Net income/(loss)	$	(78)	$	(71)	$	(96)	$	(100)	$	(127)	$	(7)	(10)	%	$	49	39	%

Average Balance Sheet (billions)
Interest bearing assets	$	11.4	$	11.0	$	11.8	$	12.4	$	13.0	$	0.4	4	%	$	(1.6)	(12)	%
Total assets	14.0		13.6		14.4		15.2		15.9		0.4		3		(1.9)		(12)

Numbers may not foot 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 $184 million of commercial credit card balances at September 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, 14 million shares during 2Q24, and 5 million shares in 3Q24.


CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited

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

Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP)	$	9,316		$	8,955		$	9,173		$	9,291		$	8,794
Less: Noncontrolling interest (a)	295			295			295			295			295
Less: Preferred stock (a)	426			426			520			520			520
(B) Total common equity	$	8,595		$	8,234		$	8,358		$	8,476		$	7,978
Less: Intangible assets (GAAP) (b)	1,663			1,674			1,685			1,696			1,709
(C) Tangible common equity (Non-GAAP)	$	6,931		$	6,560		$	6,673		$	6,779		$	6,270

Tangible Assets (Non-GAAP)
(D) Total assets (GAAP)	$	82,635		$	82,230		$	81,799		$	81,661		$	82,533
Less: Intangible assets (GAAP) (b)	1,663			1,674			1,685			1,696			1,709
(E) Tangible assets (Non-GAAP)	$	80,971		$	80,556		$	80,114		$	79,965		$	80,825












Period-end Shares Outstanding
(F) Period-end shares outstanding	532			537			549			559			559

Ratios


(A)/(D) Total equity to total assets (GAAP)	11.27		%	10.89		%	11.21		%	11.38		%	10.65		%
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP)	8.56		%	8.14		%	8.33		%	8.48		%	7.76		%
(B)/(F) Book value per common share (GAAP)	$	16.15		$	15.34		$	15.23		$	15.17		$	14.28
(C)/(F) Tangible book value per common share (Non-GAAP)	$	13.02		$	12.22		$	12.16		$	12.13		$	11.22

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

Adjusted Diluted EPS
Net income available to common shareholders ("NIAC") (GAAP)	a	$	213		$	184		$	184		$	175		$	129
Plus Total notable items (after-tax) (Non-GAAP) (a)		$	11		$	11		$	12		$	3		$	20
Adjusted net income available to common shareholders (Non-GAAP)	b	$	224		$	195		$	196		$	178		$	150

Diluted Shares (GAAP)8	c	538			547			558			561			561

Diluted EPS (GAAP)	a/c	$	0.40		$	0.34		$	0.33		$	0.31		$	0.23
Adjusted diluted EPS (Non-GAAP)	b/c	$	0.42		$	0.36		$	0.35		$	0.32		$	0.27

Adjusted Net Income ("NI") and Adjusted Return on Assets ("ROA")
Net Income ("NI") (GAAP)		$	223		$	204		$	197		$	188		$	142
Plus Relevant notable items (after-tax) (Non-GAAP) (a)		$	11		$	4		$	12		$	3		$	20
Adjusted NI (Non-GAAP)		$	234		$	208		$	209		$	191		$	163

NI (annualized) (GAAP)	d	$	889		$	820		$	791		$	746		$	565
Adjusted NI (annualized) (Non-GAAP)	e	$	932		$	836		$	838		$	757		$	646

Average assets (GAAP)	f	$	82,366		$	81,721		$	81,243		$	82,313		$	83,220

ROA (GAAP)	d/f	1.08		%	1.00		%	0.97		%	0.91		%	0.68		%
Adjusted ROA (Non-GAAP)	e/f	1.13		%	1.02		%	1.03		%	0.92		%	0.78		%

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	$	849		$	739		$	739		$	695		$	513
Adjusted Net income available to common shareholders (annualized) (Non-GAAP)	h	$	892		$	785		$	787		$	706		$	594

Average Common Equity (GAAP)	i	$	8,407		$	8,228		$	8,436		$	8,090		$	8,163
Intangible Assets (GAAP) (b)		1,669			1,680			1,691			1,702			1,714
Average Tangible Common Equity (Non-GAAP)	j	$	6,738		$	6,548		$	6,745		$	6,388		$	6,448



ROCE (GAAP)	g/i	10.10		%	8.98		%	8.76		%	8.60		%	6.28		%


ROTCE (Non-GAAP)	g/j	12.60		%	11.29		%	10.95		%	10.89		%	7.95		%
Adjusted ROTCE (Non-GAAP)	h/j	13.24		%	11.99		%	11.65		%	11.05		%	9.21		%

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

Adjusted Noninterest Income as a % of Total Revenue
Noninterest income (GAAP)	k	$	200		$	186		$	194		$	183		$	173
Plus notable items (pretax) (GAAP) (a)		—			—			—			(4)			—
Adjusted noninterest income (Non-GAAP)	l	$	200		$	186		$	194		$	179		$	173

Revenue (GAAP)	m	$	828		$	815		$	819		$	800		$	778
Taxable-equivalent adjustment		4			4			4			4			4
Revenue- Taxable-equivalent (Non-GAAP)		832			819			823			804			782
Plus notable items (pretax) (GAAP) (a)		—			—			—			(4)			—
Adjusted revenue (Non-GAAP)	n	$	832		$	819		$	823		$	800		$	782

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

Noninterest income as a % of total revenue (GAAP)	(k-o)/ (m-o)	24.06		%	22.75		%	23.72		%	23.33		%	22.23		%
Adjusted noninterest income as a % of total revenue (Non-GAAP)	l/n	23.95		%	22.64		%	23.61		%	22.32		%	22.11		%

Adjusted Efficiency Ratio
Noninterest expense (GAAP)	p	$	511		$	500		$	515		$	572		$	474
Plus notable items (pretax) (GAAP) (a)		(14)			(5)			(15)			(70)			(10)
Adjusted noninterest expense (Non-GAAP)	q	$	497		$	495		$	500		$	502		$	465

Revenue (GAAP)	r	$	828		$	815		$	819		$	800		$	778
Taxable-equivalent adjustment		4			4			4			4			4
Revenue- Taxable-equivalent (Non-GAAP)		832			819			823			804			782
Plus notable items (pretax) (GAAP) (a)		—			—			—			(4)			—
Adjusted revenue (Non-GAAP)	s	$	832		$	819		$	823		$	800		$	782

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

Efficiency ratio (GAAP)	p/ (r-t)	61.89		%	61.44		%	62.92		%	71.14		%	60.96		%
Adjusted efficiency ratio (Non-GAAP)	q/s	59.86		%	60.47		%	60.78		%	62.84		%	59.43		%

(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
	3Q24		2Q24		3Q24 vs. 2Q24				3Q24		2Q24		3Q24 vs. 2Q24










Loans excluding LMC
Total Loans (GAAP)	$	62,445	$	62,781	$	(335)	(1)	%	$	62,413	$	62,029	$	384	1	%
LMC (GAAP)	3,244		2,934		$	310	11	%	$	2,875	$	2,440	$	435	18	%
Total Loans excl. LMC (Non-GAAP)	59,201		59,847		$	(645)	(1)	%	$	59,538	$	59,589	$	(51)	—	%
Total Consumer (GAAP)	14,648		14,660		(12)		—	%	14,654		14,544		110		1	%
Total Commercial excl. LMC (Non-GAAP)	44,553		45,187		(634)		(1)	%	$	44,883	$	45,045	(161)		—	%
Total CRE (GAAP)	14,705		14,669		37		—	%	$	14,684	$	14,576	108		1	%
Total C&I excl. LMC (Non-GAAP)	$	29,848	$	30,518	$	(671)	(2)	%	$	30,199	$	30,469	(270)		(1)	%

Numbers may not foot due to rounding.



		3Q24			2Q24			1Q24			4Q23			3Q23
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	$	823		$	821		$	787		$	773		$	760
Reserve for unfunded commitments (GAAP)		75			66			79			83			82
Allowance for credit losses (Non-GAAP)	B	$	897		$	887		$	865		$	856		$	842

Loans and leases (GAAP)	C	$	62,445		$	62,781		$	61,753		$	61,292		$	61,778
Nonaccrual loans and leases (GAAP)	D	$	578		$	574		$	505		$	462		$	394

Allowance for loans and lease losses to loans and leases (GAAP)	A/C	1.32		%	1.31		%	1.27		%	1.26		%	1.23		%
Allowance for credit losses to loans and leases (Non-GAAP)	B/C	1.44		%	1.41		%	1.40		%	1.40		%	1.36		%

Allowance for loans and lease losses to nonperforming loans and leases (GAAP)	A/D	142		%	143		%	156		%	167		%	193		%
Allowance for credit losses to nonperforming loans and leases (Non-GAAP)	B/D	155		%	155		%	171		%	185		%	214		%

Numbers may not foot due to rounding.


CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited

($s in millions)

	3Q24		2Q24		1Q24		4Q23		3Q23
Adjusted Pre-provision Net Revenue (PPNR)
Pre-tax income (GAAP)	$	281	$	260	$	254	$	177	$	194
Plus notable items (pretax) (GAAP) (a)	14		5		15		67		10
Adjusted Pre-tax income (non-GAAP)	$	296	$	265	$	269	$	244	$	204
Plus provision expense (GAAP)	35		55		50		50		110
Adjusted Pre-provision net revenue (PPNR) (non-GAAP)	$	331	$	320	$	319	$	294	$	314
Taxable-equivalent adjustment	4		4		4		4		4
Pre-provision net revenue-Taxable-equivalent (Non-GAAP)	$	335	$	324	$	323	$	298	$	318

(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.

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

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