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FIRST HORIZON CORP0000036966false00000369662024-07-172024-07-170000036966fhn:A625ParValueCommonCapitalStockMember2024-07-172024-07-170000036966fhn:DepositorySharesEachRepresentingA14000thInterestInAShareOfNonCumulativePerpetualPreferredStockSeriesBMember2024-07-172024-07-170000036966fhn:DepositorySharesEachRepresentingA14000thInterestInAShareOfNonCumulativePerpetualPreferredStockSeriesCMember2024-07-172024-07-170000036966fhn:DepositorySharesEachRepresentingA14000thInterestInAShareOfNonCumulativePerpetualPreferredStockSeriesEMember2024-07-172024-07-170000036966fhn:DepositorySharesEachRepresentingA14000thInterestInAShareOfNonCumulativePerpetualPreferredStockSeriesFMember2024-07-172024-07-17

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________  

FORM 8-K
_____________________________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

July 17, 2024
Date of Report (date of earliest event reported)

First Horizon Corporation.jpg
 
(Exact name of registrant as specified in its charter)
TN
001-15185 62-0803242
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)
165 Madison Avenue Memphis, Tennessee 38103
(Address of Principal Executive Offices)
(Zip Code)
(Registrant's telephone number, including area code)  (901) 523-4444

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Trading Symbol(s) Name of Exchange on which Registered
$0.625 Par Value Common Capital Stock  FHN New York Stock Exchange LLC
Depositary Shares, each representing a 1/400th interest in FHN PR B New York Stock Exchange LLC
a share of Non-Cumulative Perpetual Preferred Stock, Series B
Depositary Shares, each representing a 1/400th interest in FHN PR C New York Stock Exchange LLC
a share of Non-Cumulative Perpetual Preferred Stock, Series C
Depositary Shares, each representing a 1/4,000th interest in FHN PR E New York Stock Exchange LLC
a share of Non-Cumulative Perpetual Preferred Stock, Series E
Depositary Shares, each representing a 1/4,000th interest in FHN PR F New York Stock Exchange LLC
a share of Non-Cumulative Perpetual Preferred Stock, Series F

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o Furnished as Exhibit 99.1 is a copy of the First Horizon Corporation (“FHN” or "First Horizon") Second Quarter 2024 Earnings Release, released today.



ITEM 2.02. Results of Operations and Financial Condition.
ITEM 7.01. Regulation FD Disclosure.
 

Furnished as Exhibit 99.2 is a copy of the Investor Slide Presentation for the quarter ended June 30, 2024, released today.

Exhibits 99.1 and 99.2 are furnished pursuant to Item 2.02, “Results of Operations and Financial Condition” and Item 7.01, “Regulation FD Disclosure.” The exhibits speak as of the date thereof and FHN does not assume any obligation to update in the future the information therein.

Use of Non-GAAP Measures and Regulatory Measures that are not GAAP in the Exhibits
 
Certain measures included in the exhibits furnished by 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 included in the exhibits furnished by this report are identified in the exhibits, where used and in the reconciliations to GAAP measures. Reconciliations of non-GAAP to GAAP measures and presentation of the most comparable GAAP items are presented near the end (immediately before the Glossary) of Exhibit 99.1-Earnings Release and at the end of Exhibit 99.2-Investor Slide Presentation.

Presentation of regulatory measures, even those which are not GAAP, provides 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 included in the measures furnished by this report 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 ("RWA"), which is a measure of total on- and off-balance sheet assets adjusted for credit and market risk, used to determine regulatory capital ratios.

Forward-Looking Statements
The exhibit furnished by this report contain 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 the 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 this year. FHN assumes no obligation to update or revise any forward-looking statements that are made in the exhibits or in any other statement, release, report, or filing from time to time. Throughout the exhibits furnished by this report, numbers may not foot due to rounding, and references to EPS are fully diluted.


FIRST HORIZON CORPORATION
2
FORM 8-K CURRENT REPORT 07/17/2024


ITEM 9.01. Financial Statements and Exhibits.
 
(d)Exhibits

Each of the following Exhibits 99.1 and 99.2, furnished pursuant to Items 2.02 and 7.01, is not to be considered “filed” under the Securities Exchange Act of 1934, as amended (“Exchange Act”), and shall not be incorporated by reference into any of FHN’s previous or future filings under the Securities Act of 1933, as amended, or the Exchange Act.
 
Exhibit #   Description
99.1   
99.2 
104  Cover Page Interactive Data File, formatted in Inline XBRL
FIRST HORIZON CORPORATION
3
FORM 8-K CURRENT REPORT 07/17/2024



SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  FIRST HORIZON CORPORATION
  (Registrant)  
     
Date: July 17, 2024 By: /s/ Hope Dmuchowski  
  Hope Dmuchowski  
  Senior Executive Vice President—Chief Financial Officer
(Duly Authorized Officer and Principal Financial Officer)
FIRST HORIZON CORPORATION
4
FORM 8-K CURRENT REPORT 07/17/2024
EX-99.1 2 a2q2024earningsrelease.htm EX-99.1 Document

fhnlogoa.jpg


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.
1



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  % $ 78  %
Interest expense- taxable equivalent1
464  448  385  16  79  21 
Net interest income- taxable equivalent 633  628  635  (2) — 
Less: Taxable-equivalent adjustment —  10  — 
Net interest income 629  625  631  (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  (161) (34)
Provision for credit losses 55  50  50  10  10 
Income before income taxes 260  254  425  (166) (39)
Provision for income taxes 56  57  96  (1) (2) (40) (42)
Net income 204  197  329  (125) (38)
Net income attributable to noncontrolling interest —  — 
Net income attributable to controlling interest 199  192  325  (126) (39)
Preferred stock dividends 15  85  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  % $ (0.22) (39) %
Adjusted EPS4
$ 0.36  $ 0.35  $ 0.39  $ 0.01  % $ (0.03) (9) %
Diluted shares8
547  558  561  (11) (2) % (14) (2) %
Key performance metrics
Net interest margin6
3.38  % 3.37  % 3.38  % 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  (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  % $ 2.1  %
Average deposits 65.0  65.4  61.4  (0.4) (1) 3.5 
Average assets 81.7  81.2  82.3  0.5  (0.6) (1)
Average common equity $ 8.2  $ 8.4  $ 7.7  $ (0.2) (2) % $ 0.5  %
Asset Quality Highlights
Allowance for credit losses to loans and leases4
1.41  % 1.40  % 1.35  % —  bp bp
Nonperforming loan and leases ratio 0.91  % 0.82  % 0.66  % bp 25  bp
Net charge-off ratio 0.22  % 0.27  % 0.16  % (5) bp 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)
Tier 1 leverage 10.6  % 10.8  % 10.5  % (21) bp bp
Numbers may not foot due to rounding.
See footnote disclosures on page 19.

2


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.



3




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.
4


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
5


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  % $ 78  %
Interest expense- taxable equivalent1
464  448  469  475  385  16  79  21 
Net interest income- taxable equivalent 633  628  621  609  635  (2) — 
Less: Taxable-equivalent adjustment —  10  — 
Net interest income 629  625  617  605  631  (2) — 
Noninterest income:
Fixed income 40  52  37  28  30  (12) (23) 10  34 
Mortgage banking 10  19  66 
Brokerage, trust, and insurance 38  36  36  34  35  10 
Service charges and fees 58  57  59  60  59  (1) — 
Card and digital banking fees 20  19  16  20  21  (1) (5)
Deferred compensation income —  (6) (66) (5) (63)
Gain on merger termination —  —  —  —  225  —  NM (225) (100)
Other noninterest income 17  14  23  25  17  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)
Incentives and commissions 79  92  82  77  86  (13) (14) (8) (9)
Deferred compensation expense —  (6) (67) (5) (62)
Total personnel expense 279  301  279  266  285  (21) (7) (5) (2)
Occupancy and equipment2
72  72  71  67  68  —  — 
Outside services 78  65  84  69  71  13  19  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  (161) (34)
Provision for credit losses 55  50  50  110  50  10  10 
Income before income taxes 260  254  177  194  425  (166) (39)
Provision for income taxes 56  57  (11) 52  96  (1) (2) (40) (42)
Net income 204  197  188  142  329  (125) (38)
Net income attributable to noncontrolling interest —  — 
Net income attributable to controlling interest 199  192  183  137  325  (126) (39)
Preferred stock dividends 15  85  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  % $ (0.25) (42) %
Basic shares 544  555  559  559  539  (11) (2)
Diluted EPS $ 0.34  $ 0.33  $ 0.31  $ 0.23  $ 0.56  $ 0.01  $ (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.
6


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  $ % $ (2) —  %
Adjusted noninterest income:
Fixed income 40  52  37  28  30  (12) (23) 10  34 
Mortgage banking 10  19  66 
Brokerage, trust, and insurance 38  36  36  34  35  10 
Service charges and fees 58  57  59  60  59  (1) — 
Card and digital banking fees 20  19  16  20  21  (1) (5)
Deferred compensation income —  (6) (66) (5) (63)
Gain on merger termination —  —  —  —  —  —  NM —  NM
Adjusted other noninterest income 17  14  20  25  17  18  (1) (3)
Adjusted total noninterest income $ 186  $ 194  $ 179  $ 173  $ 175  $ (8) (4) % $ 11  %
Total revenue (FTE)1
$ 819  $ 823  $ 800  $ 782  $ 810  $ (4) —  % $ %
Adjusted noninterest expense:
Adjusted personnel expense:
Adjusted salaries and benefits $ 198  $ 199  $ 190  $ 188  $ 187  $ (1) (1) % $ 11  %
Adjusted Incentives and commissions 78  87  80  68  65  (9) (10) 13  20 
Deferred compensation expense —  (6) (67) (5) (62)
Adjusted total personnel expense 279  295  277  256  260  (16) (5) 19 
Adjusted occupancy and equipment2
72  72  71  67  68  —  — 
Outside services 75  65  84  69  68  10  15  10 
Amortization of intangible assets 11  11  12  12  12  —  —  (1) (8)
Adjusted other noninterest expense 58  57  59  60  53 
Adjusted total noninterest expense $ 495  $ 500  $ 502  $ 465  $ 461  $ (5) (1) % $ 34  %
Adjusted pre-provision net revenue4
$ 324  $ 323  $ 298  $ 318  $ 349  $ —  % $ (25) (7) %
Provision for credit losses $ 55  $ 50  $ 50  $ 110  $ 50  $ 10  % $ 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  % $ (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.

7



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) —  —  —  — 
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 $ $ 15  $ 67  $ 10  $ (130)
Provision for income taxes * 64  (11) (33)
Preferred stock dividends ** (7) —  —  —  — 
Net income/(loss) available to common shareholders $ 11  $ 12  $ $ 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.
8



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  % bp —  bp
Return on average assets 1.00  % 0.97  % 0.91  % 0.68  % 1.60  % (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  %
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 bp
Tier 1 leverage ratio* 10.6  % 10.8  % 10.7  % 10.5  % 10.5  % (21) bp bp
Risk-weighted assets (“RWA”) (billions)* $ 71.9  $ 71.1  $ 71.1  $ 71.9  $ 71.5  $ 0.8  % $ 0.4  %
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  % $ 0.76  %
Tangible book value per common share4
$ 12.22  $ 12.16  $ 12.13  $ 11.22  $ 11.50  $ 0.06  —  % $ 0.72  %
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.
9



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  % $ 337  %
Commercial real estate 14,669  14,426  14,216  14,121  13,891  242  778 
Total Commercial 48,121  47,337  46,849  47,283  47,006  784  1,115 
Consumer real estate 13,909  13,645  13,650  13,685  13,475  264  434 
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  371 
Loans and leases, net of unearned income 62,781  61,753  61,292  61,778  61,295  1,028  1,486 
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  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  (296) (7)
Total assets $ 82,230  $ 81,799  $ 81,661  $ 82,533  $ 85,071  $ 431  % $ (2,841) (3) %
Liabilities and Shareholders' Equity:
Deposits:
Savings $ 25,437  $ 25,847  $ 25,082  $ 25,590  $ 23,733  $ (410) (2) % $ 1,704  %
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 
Total interest-bearing deposits 48,446  49,331  48,576  49,190  46,632  (885) (2) 1,814 
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  19 
Total interest-bearing liabilities 54,559  53,665  52,783  53,220  54,908  893  (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  (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  342 
Accumulated other comprehensive loss, net (1,281) (1,271) (1,188) (1,582) (1,359) (10) (1) 78 
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  % $ (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  %
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.
10


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  % $ 485  %
Commercial real estate 14,576  14,367  14,210  13,999  13,628  209  949 
Total Commercial 47,485  46,756  46,730  47,041  46,051  728  1,434 
Consumer real estate 13,783  13,615  13,664  13,575  13,058  168  725 
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  671 
Loans and leases, net of unearned income 62,029  61,152  61,197  61,432  59,924  876  2,105 
Loans held-for-sale 462  454  547  782  731  (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  (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  (218) (5)
Total assets $ 81,721  $ 81,243  $ 82,313  $ 83,220  $ 82,304  $ 477  % $ (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  1,163  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  (258) (18)
Total interest-bearing liabilities 53,879  52,921  53,475  53,575  51,424  957  2,455 
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  374  17 
Total liabilities 72,772  71,992  73,407  74,242  73,275  779  (503) (1)
Shareholders' Equity:
Preferred stock 426  520  520  520  986  (94) (18) (560) (57)
Common stock 340  347  349  349  337  (7) (2)
Capital surplus 5,127  5,301  5,343  5,330  4,891  (174) (3) 236 
Retained earnings 4,122  4,028  3,935  3,861  3,759  93  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  % $ (583) (1) %
Memo:
Total deposits $ 64,960  $ 65,379  $ 66,862  $ 66,523  $ 61,445  $ (418) (1) % $ 3,515  %
Loans to mortgage companies $ 2,440  $ 1,847  $ 1,948  $ 2,353  $ 2,262  $ 593  32  % $ 177  %
Numbers may not foot due to rounding. See footnote disclosures on page 19.
11


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  % $ 73  10  %
Consumer 179  4.91  173  4.80  171  4.71  165  4.55  153  4.39  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  98  11 
Loans held-for-sale 7.50  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  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 5.31  5.16  5.32  5.06  4.85  28  NM
Interest income $ 1,097  5.86  % $ 1,076  5.78  % $ 1,089  5.74  % $ 1,084  5.64  % $ 1,019  5.42  % $ 21  % $ 78  %
Interest bearing liabilities/Interest expense:
Interest-bearing deposits:
Savings $ 208  3.29  % $ 206  3.27  % $ 222  3.42  % $ 219  3.48  % $ 141  2.63  % $ % $ 67  48  %
Time deposits 74  4.45  73  4.42  82  4.42  89  4.35  49  3.56  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  —  134  50 
Trading liabilities 4.46  4.31  4.59  4.20  3.82  35  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  13  57 
Short-term borrowings 17  5.48  5.43  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  79  21 
Net interest income - tax equivalent basis 633  2.40  628  2.38  621  2.26  609  2.12  635  2.42  (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  % $ % $ (2) —  %
Memo:
Total loan yield 6.34  % 6.28  % 6.19  % 6.10  % 5.89  % bp 45  bp
Total deposit cost 2.47  % 2.45  % 2.49  % 2.44  % 1.73  % bp 74  bp
Total funding cost 2.66  % 2.59  % 2.63  % 2.63  % 2.17  % bp 49  bp
Average loans and leases, net of unearned income $ 62,029  $ 61,152  $ 61,197  $ 61,432  $ 59,924  $ 876  % $ 2,105  %
Average deposits 64,960 65,379 66,862 66,523 61,445 (418) (1) % 3,515  %
Average funded liabilities 70,210 69,547 70,822 71,720 71,088 $ 663  % $ (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.
12


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  (1) — 
Credit card and other5
—  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) $ —  $ —  $ $ $ $ —  NM $ (1) NM
Commercial real estate —  —  —  —  —  —  NM —  NM
Consumer real estate 17  12  (3) (47) (5) (58)
Credit card and other5
(1) (25) (2) (52)
Total loans and leases 90 days or more past due and accruing $ $ 10  $ 21  $ 17  $ 14  $ (4) (38) % $ (8) (56) %
Numbers may not foot due to rounding.
See footnote disclosures on page 19.
13



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) % $ 28  %
Commercial real estate 19  12  54  11  NM
Consumer real estate —  NM —  46 
Credit card and other5
(1) (16) — 
Total gross charge-offs $ 49  $ 46  $ 41  $ 104  $ 33  $ % $ 16  50  %
Gross Recoveries
Commercial, financial, and industrial (C&I) $ (11) $ (3) $ (2) $ (5) $ (5) $ (9) NM $ (7) NM
Commercial real estate —  —  —  —  (1) —  91  99 
Consumer real estate (2) (1) (2) (2) (3) (1) (74) — 
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  55  11  NM
Consumer real estate (1) (1) —  (2) (2) —  (53) 29 
Credit card and other5
—  (12) — 
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.
14



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  % $ 72  10  %
Charge-offs:
Commercial, financial, and industrial (C&I) * (24) (28) (31) (92) (19) 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) 16  —  (1)
Total charge-offs (49) (46) (41) (104) (33) (3) (6) (16) (50)
Recoveries:
Commercial, financial, and industrial (C&I) 11  NM NM
Commercial real estate —  —  —  —  —  (91) (1) (99)
Consumer real estate 74  —  (9)
Credit card and other5
—  (27) — 
Total Recoveries 15  NM 62 
Provision for loan and lease losses:
Commercial, financial, and industrial (C&I) * 34  33  96  15  (24) (72) (6) (39)
Commercial real estate 59  21  14  16  38  NM 43  NM
Consumer real estate (1) (3) 10  73  (11) NM
Credit card and other5
—  (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  % $ 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) (8) (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  % $ 60  %
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.
15



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.
16


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 
Total revenue 632  637  655  664  691  (5) (1) (59) (9)
Noninterest expense 334  324  334  311  314  10  20 
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  % $ 1.3  %
Interest-earning assets 41.0  40.6  40.6  40.6  39.7  0.4  1.3 
Total assets 43.5  43.1  43.2  43.3  42.3  0.4  1.2 
Total deposits 57.5  57.8  58.6  58.0  55.2  (0.3) (1) 2.3 
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  — 
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.
17



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  $ % $ %
Noninterest income 64  72  64  49  50  (7) (10) 14  27 
Total revenue 222  224  217  209  206  (3) (1) 15 
Noninterest expense 103  104  101  96  95  (1) (1)
Pre-provision net revenue3
119  120  116  114  112  (1) (1)
Provision for credit losses 23  31  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  22  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  % $ 0.9  %
Interest-earning assets 23.3  22.4  22.4  22.7  22.0  0.8  1.3 
Total assets 24.6  23.8  23.9  24.1  23.3  0.8  1.3 
Total deposits 3.9  4.0  4.2  4.1  3.8  (0.1) (3) 0.1 
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.
18


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) $ 15  % $ 60  54  %
Noninterest income 13  18  13  18  244  (5) (28) (231) (95)
Total revenues (39) (43) (72) (95) 133  (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 17 
Income before income tax expense (100) (129) (200) (158) (10) 29  23  (90) NM
Income tax expense (benefit) (29) (33) (100) (31) (7) 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.


19


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.


20


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  $ $ 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) $ $ 12  $ $ 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.


21


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
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 $ $ —  $ (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
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 $ $ —  $ (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.
22


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  % $ 62,029  $ 61,152  $ 876  %
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  % 59,589  59,305  284  —  %
Total Consumer (GAAP) 14,660 14,416 244  % 14,544 14,396 148  %
Total Commercial excl. LMC (Non-GAAP) 45,187  44,971  216  —  % 45,045  44,909  136  —  %
Total CRE (GAAP) 14,669  14,426  243  % 14,576  14,367  209  %
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.


23


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) 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
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.
24



GLOSSARY OF TERMS
Common Equity Tier 1 Ratio: Ratio consisting of common equity adjusted for certain unrealized gains/(losses) on available-for-sale securities, less disallowed portions of goodwill, other intangibles, and deferred tax assets as well as certain other regulatory deductions divided by risk-weighted assets.
 
Fully Taxable Equivalent (“FTE”): Reflects the amount of tax-exempt income adjusted to a level that would yield the same after-tax income had that income been subject to taxation.
 
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
Regional Banking segment: Offers financial products and services, including traditional lending and deposit taking, to consumer and commercial customers primarily in the southern and southeastern U.S. and other selected markets. Regional Banking also provides investment, wealth management, financial planning, trust and asset management services for consumer customers.

Specialty Banking segment: Consists of lines of business that deliver product offerings and services with specialized industry knowledge. Specialty Banking’s lines of business include asset-based lending, mortgage warehouse lending, commercial real estate, franchise finance, correspondent banking, equipment finance, 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 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.

25
EX-99.2 3 a2q24earningsslidesfinal.htm EX-99.2 a2q24earningsslidesfinal
Second Quarter 2024 Earnings July 17, 2024


 
2 Disclaimers Non-GAAP Information Certain measures included in this document 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. FHN’s management believes such measures, even though not always comparable to non-GAAP measures used by other financial institutions, are relevant to understanding the financial condition, capital position, and financial results of FHN and its business segments. The non-GAAP measures presented in this document are listed, and are reconciled to the most comparable GAAP presentation, in the non-GAAP reconciliation table(s) appearing in the Appendix. In addition, 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. 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 document include: common equity tier 1 capital, 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. 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. Throughout this presentation, numbers may not foot due to rounding, references to EPS are fully diluted, and 2Q24 capital ratios are estimates.


 
3 2Q24 GAAP financial summary TBV/share, ROTCE, and adjusted financial measures, including measures excluding deferred compensation, are Non-GAAP and are reconciled to GAAP measures in the appendix. Pre-provision net revenue (PPNR) is a non-GAAP measure and is reconciled to pre-tax income (GAAP) in the table. $ in millions except per share data Reported Results 2Q24 Change vs. 2Q24 1Q24 4Q23 3Q23 2Q23 1Q24 2Q23 Net interest income $629 $625 $617 $605 $631 $4 1% ($2) —% Fee income $186 $194 $183 $173 $400 ($8) (4%) ($214) (54%) Total revenue $815 $819 $800 $778 $1,031 ($4) (1%) ($216) (21%) Expense $500 $515 $572 $474 $555 ($15) (3%) ($55) (10%) Pre-provision net revenue (PPNR) $315 $304 $227 $304 $475 $11 4% ($161) (34%) Provision for credit losses $55 $50 $50 $110 $50 $5 10% $5 10% Pre-tax income $260 $254 $177 $194 $425 $6 2% ($166) (39%) Income tax expense $56 $57 ($11) $52 $96 ($1) (2%) ($40) (42%) Net income $204 $197 $188 $142 $329 $7 4% ($125) (38%) Non-controlling interest $5 $5 $5 $5 $5 $— 1% $— 7% Preferred dividends $15 $8 $8 $8 $8 $7 85% $7 94% Net income available to common shareholders (NIAC) $184 $184 $175 $129 $317 $— —% ($133) (42%) Diluted EPS $ 0.34 $ 0.33 $ 0.31 $ 0.23 $ 0.56 $0.01 2% ($0.22) (39%) Average diluted shares outstanding 547 558 561 561 561 (11) (2%) (14) (2%) ROCE 9.0% 8.8% 8.6% 6.3% 16.4% 22bps (742bps) ROTCE 11.3% 11.0% 10.9% 8.0% 21.1% 34bps (981bps) ROA 1.0% 1.0% 0.9% 0.7% 1.6% 3bps (60bps) Net interest margin 3.38% 3.37% 3.27% 3.17% 3.38% 1bp — Fee income / total revenue 22.8% 23.7% 23.3% 22.2% 38.8% (97bps) (1,605bps) Efficiency ratio 61.4% 62.9% 71.1% 61.0% 53.9% (148bps) 755bps FTEs 7,297 7,327 7,277 7,340 7,327 (30) —% (30) —% CET1 ratio 11.0% 11.3% 11.4% 11.1% 11.1% (26bps) (3bps) Effective tax rate 21.5% 22.5% (6.2%) 26.7% 22.6% (99bps) (114bps) Tangible book value per share $12.22 $12.16 $12.13 $11.22 $11.50 $0.06 —% $0.72 6% Period end loans $62.8B $61.8B $61.3B $61.8B $61.3B $1.0 2% $1.5 2% Period end deposits $64.8B $65.7B $65.8B $67.0B $65.4B ($0.9) (1%) ($0.6) (1%) Period end loan to deposit ratio 97 % 94 % 93 % 92 % 94 % 296bps 321bps


 
4 Table of contents 2Q24 highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2Q24 adjusted financial results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2Q24 notable items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 NII and NIM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Adjusted fee income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Adjusted expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Asset quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 FY24 outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Strategic focus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17


 
5 • Deposits declined 1%, in line with the industry2 • Noninterest-bearing deposits remained stable • Total loans grew $1.0 billion, driven by increases in loans to mortgage companies and continued commercial real estate fund-ups • Returned $212 million of capital to shareholders through repurchases • TBVPS up $0.06, driven by strong earnings, which supported the $0.15 common dividend and an $0.08 impact of share repurchases • ACL coverage of 1.41% with net charge-offs of $34 million • Adjusted PPNR of $324 million, up $1 million from 1Q24 • Net interest margin expanded 1bp as asset yields continue to improve • Fees excluding deferred comp down $3 million, as higher traditional banking fees partially offset the anticipated moderation in fixed income • Expenses excluding deferred comp essentially flat Strong 2Q24 results driven by stable, diversified business mix Reflects 2Q24 vs. 1Q24 results. ROTCE, ACL coverage ratio, and adjusted financial measures, including measures excluding deferred compensation, are Non-GAAP and are reconciled to GAAP measures in the appendix. Adjusted pre-provision net revenue (PPNR) is a non-GAAP measure and is reconciled to pre-tax income (GAAP) in the appendix. 1Period end Loan-to-Deposit ratio. 2Source for industry data: H8 data series (All Commercial Banks, Weekly, Not Seasonally Adjusted) of the Federal Reserve Board, 3/27/24 to 6/26/24. Earnings & Returns Capital & Credit Quality Balance Sheet & Liquidity Adj. EPS Adj. ROTCE NIM Adj. Efficiency $0.36 12.0% 3.38% 60.5% CET1 TBV NCO% 11.0% $12.22 0.22% PE Deposit Growth PE Loan Growth PE LDR1 (1)% 2% 97%


 
6 • 2Q24 adjusted EPS of $0.36 vs. $0.35 in 1Q24 – Adjusted ROTCE of 12.0%, up 34bps – Tangible Book Value per share increased $0.06 to $12.22 • NII up $5 million or 1% linked quarter – NIM expanded 1bp vs 1Q24 driven by improved asset yields • Adjusted fee income down $3 million excluding deferred compensation – Higher traditional banking fees mostly offset the anticipated moderation in fixed income • Adjusted expense up less than $1 million excluding deferred compensation • Provision expense of $55 million, resulting in an ACL coverage of 1.41% 2Q24 Adjusted financial highlights ROTCE, TBV per share, ACL coverage ratio, and adjusted financial measures, including measures excluding deferred compensation, are Non-GAAP and are reconciled to GAAP measures in the appendix. $ in millions, except per share data Adjusted Results 2Q24 Change vs. 2Q24 1Q24 2Q23 1Q24 2Q23 Net interest income (FTE) $633 $628 $635 $5 1% ($2) —% Fee income $186 $194 $175 ($8) (4%) $11 6% Total revenue (FTE) $819 $823 $810 ($4) —% $9 1% Expense $495 $500 $461 ($5) (1%) $34 7% Pre-provision net revenue $324 $323 $349 $1 —% ($25) (7%) Provision for credit losses $55 $50 $50 $5 10% $5 10% Net charge-offs $34 $40 $23 ($6) (16%) $11 46% Reserve build / (release) $21 $10 $27 $11 118% ($6) (21%) NIAC $195 $195 $219 $— —% ($24) (11%) Diluted EPS $0.36 $0.35 $0.39 $0.01 2% ($0.03) (9%) Diluted shares 547 558 561 (11) (2%) (14) (2%) ROTCE 12.0% 11.6% 14.6% 34bps (260bps) ROA 1.0% 1.0% 1.1% (1bp) (11bps) Net interest margin (NIM) 3.38% 3.37% 3.38% 1bp — Fee income / total revenue 22.6% 23.6% 21.6% (97bps) 104bps Efficiency ratio 60.5% 60.8% 56.9% (31bps) 355bps CET1 Ratio 11.0% 11.3% 11.1% (26bps) (3bps) TBV per share $12.22 $12.16 $11.50 $0.06 —% $ 0.72 6% Effective tax rate 21.5% 22.5% 21.6% (100bps) (2bps)


 
7 2Q24 notable items Notable Items ($ in millions, except EPS) 2Q24 FDIC Special Assessment ($2) Restructuring expense ($3) Pre-tax impact of notable items ($5) Tax impact on pre-tax notable items $1 Series D Preferred Stock ($7) NIAC impact of notable items ($11) EPS impact of notable items ($0.02) Pre-Tax Notable Items • Effective 5/1/24, First Horizon redeemed all outstanding shares of the Series D Preferred Stock and all related depositary shares – Did not qualify as Additional Tier 1 Capital (AT1) – $100 million par value and $94 million book value – The $6 million discount and $1 million tax liability resulted in a non-cash charge in 2Q24 to preferred dividends1 – Fixed coupon of 6.10% was set to convert to 3 month SOFR +4.12% on May 1st After-Tax Notable Items 1Tax liability is result of the 1% excise tax on stock repurchases and redemptions imposed on publicly traded companies under The Inflation Reduction Act of 2022. • FDIC special assessment of $2 million, based on revised resolution loss totals received from the FDIC in 2Q24 • $3 million of restructuring expense primarily related to implementing operational efficiencies


 
8 NII increased $5 million benefiting from higher loan volumes and yields $635 $609 $621 $628 $633 3.38% 3.17% 3.27% 3.37% 3.38% 2Q23 3Q23 4Q23 1Q24 2Q24 Net Interest Income ($) and NIM (%) Net interest income and margin are adjusted to a fully taxable equivalent (“FTE”) basis assuming a statutory federal income tax of 21 percent and, where applicable, state income taxes. • 2Q24 net interest income increased $5 million and net interest margin expanded 1bp versus 1Q24 – Improvement driven by wider spreads on new and renewing loans, continued repricing of fixed rate cash flows, and growth in loans to mortgage companies and other floating rate loans – Offsetting the increase in asset yields were continued mix shift within interest-bearing products, higher use of wholesale funds, and lower average noninterest-bearing deposits • Asset yields still able to modestly expand as fixed cash flows continue to reprice – Over the next twelve months, there are ~$4 billion of fixed rate loan cash flows with a roll-off yield of ~4.6% and $1 billion of securities cash flows at a roll-off yield of ~2.2% $ in millions NII Margin 1Q24 $628 3.37% Loan Volumes & Mix $15 0.04% Loan Rates & Spreads $9 0.05% Investment Securities & Other $(3) 0.01% Deposit Rates & Funding Mix $(15) (0.09)% 2Q24 $633 3.38%


 
9 $65.4B $67.0B $65.8B $65.7B $64.8B $42.9 $45.3 $45.9 $46.2 $45.0 $3.7 $3.8 $2.6 $3.1 $3.5 $18.8 $17.8 $17.2 $16.4 $16.3 Customer interest-bearing deposits Brokered deposits Noninterest-bearing deposits 2Q23 3Q23 4Q23 1Q24 2Q24 Deposits trending in line with the industry1 while DDA remains stable Period end deposits • 2Q24 period end deposits of $64.8 billion were down 1% versus 1Q24, in line with the 1% industry decline1 – Noninterest-bearing balances remained stable from previous quarter – Seasonality impacted public fund deposits, which declined $0.7 billion from the prior quarter • 2Q24 total deposit rate paid of 2.47% and interest- bearing rate paid of 3.30% both increased 2bps – The cumulative interest-bearing deposit beta of 61% remains below the peak of 63% in 3Q23 – Deposit portfolio includes ~$8 billion of deposits which are market indexed – Over $1 billion of balances migrated from lower-cost, base rate accounts into higher-rate retention offers, which increased the spot rate to ~3.35% • Competition remains strong in our attractive southeast footprint. Continuing to maintain competitive offers while focusing on retention of existing clients – Year-over-year client retention is 95% 1Source for industry data: H8 data series (All Commercial Banks, Weekly, Not Seasonally Adjusted) of the Federal Reserve Board, 3/27/24 to 6/26/24.


 
10 • 2Q24 period end loans of $62.8 billion grew $1.0 billion or 2% versus 1Q24 – The spring home buying season drove $568 million higher balances in loans to mortgage companies (LMC), as well as a modest increase in consumer real estate – CRE growth of $242 million driven by fund-ups of previously committed loans, primarily multi- family • Period end line utilization of 43%1 • Loan yields expanded 6bps to 6.34% driven by wider spreads on new and renewing loans, as well as continued repricing of fixed rate cash flows • Asset sensitive profile reflected in loan composition of 56% variable rate, 12% ARM, and 32% fixed rate 1Utilization rates exclude Loans to Mortgage Companies. 2Credit card & other is $0.8B in all periods. Period end loans Diversified portfolio across attractive geographic footprint $61.3B $61.8B $61.3B $61.8B $62.8B $30.4B $30.9B $30.6B $30.5B $30.5B $13.9B $14.1B $14.2B $14.4B $14.7B $13.5B $13.7B $13.7B $13.6B $13.9B $2.7B $2.2B $2.0B $2.4B $2.9B C&I ex LMC Commercial real estate (CRE) Consumer real estate LMC Credit card & other 2Q23 3Q23 4Q23 1Q24 2Q24 2


 
11 • 2Q24 adjusted fee income excluding deferred compensation decreased $3 million from 1Q24 – Fixed income decreased $12 million as average daily revenue (ADR) moderated, driven by a reduction in the market’s rate cut expectations and lower portfolio restructuring activity – Mortgage banking income up $2 million, from higher secondary volume during the spring home-buying season – Service charges and card & digital banking fees increased $1 million each, primarily from seasonal volume trends – Brokerage, trust, and insurance income improved $2 million, largely driven by tax services provided in trust and higher wealth management fees related to strong recent market performance – Other noninterest income increased $3 million, driven by incremental swap fees and a gain on a tax credit investment Growth in other banking fees offset anticipated fixed income moderation ROTCE and adjusted financial measures, including measures excluding deferred compensation, are Non-GAAP and are reconciled to GAAP measures in the appendix. $ in millions Adjusted Results 2Q24 Change vs. 2Q24 1Q24 4Q23 3Q23 2Q23 1Q24 2Q23 Fixed income $40 $52 $37 $28 $30 ($12) (23%) $10 34% Mortgage banking $10 $9 $5 $7 $6 $2 19% $4 66% Service charges and fees $58 $57 $59 $60 $59 $1 2% ($1) —% Brokerage, trust, and insurance $38 $36 $36 $34 $35 $2 6% $3 10% Card and digital banking fees $20 $19 $16 $20 $21 $1 7% ($1) (5%) Deferred compensation income $3 $9 $6 $0 $8 ($6) (66%) ($5) (63%) Other noninterest income $17 $14 $20 $25 $17 $3 18% ($1) (3%) Total fee income $186 $194 $179 $173 $175 ($8) (4%) $11 6% Fee income ex deferred comp $183 $186 $173 $173 $167 ($3) (2%) $16 9% Fixed income ADR $488k $731k $463k $301k $348k ($243k) (33%) $140k 40%


 
12 Expenses stable as lower incentive levels offset strategic investments • 2Q24 adjusted expense, excluding deferred compensation, increased $1 million versus 1Q24 – Personnel expense excluding deferred compensation down $11 million ◦ Salaries and benefits decreased $1 million as benefits expense moderated from seasonal highs in first quarter ◦ Incentives and commissions decreased $9 million, primarily due to lower fixed income revenue and a step down in merger retention expense late in the quarter, which should drive an incremental reduction in 3Q24 – Outside services increased $10 million due the launch of new marketing campaigns for checking accounts, as well as third- party services for strategic investments $ in millions Adjusted Results 2Q24 Change vs. 2Q24 1Q24 4Q23 3Q23 2Q23 1Q24 2Q23 Salaries and benefits $198 $199 $190 $188 $187 ($1) (1%) $11 6% Incentives and commissions $78 $87 $80 $68 $65 ($9) (10%) $13 20% Deferred compensation expense $3 $9 $7 $0 $8 ($6) (67%) ($5) (62%) Total personnel expense $279 $295 $277 $256 $260 ($16) (5%) $19 7% Occupancy and equipment $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%) Other noninterest expense $58 $57 $59 $60 $53 $1 2% $5 9% Total noninterest expense $495 $500 $502 $465 $461 ($5) (1%) $34 7% Expense ex deferred comp $492 $491 $495 $465 $453 $1 —% $39 9% Full-time equivalent associates 7,297 7,327 7,277 7,340 7,327 (30) —% (30) —% ROTCE and adjusted financial measures, including measures excluding deferred compensation, are Non-GAAP and are reconciled to GAAP measures in the appendix. 1Occupancy and Equipment expense includes Computer Software Expense. 1


 
13 FHN NCO%1 ( FHN NCO% ex idiosyncratic charge-off3) Average NCO% of BKX Index2 $23 $95 $36 $40 $34 0.16% 0.61% 0.27% 0.22% 0.15% 0.23% 0.43% 0.45% 0.53% 0.56% 2Q23 3Q23 4Q23 1Q24 2Q24 FHN NCOs Disciplined lending leads to strong performance across the cycle ACL coverage ratio is Non-GAAP and is reconciled to GAAP measures in the appendix. 1Net charge-off % is annualized and as % of average loans. 2Excludes trust and investment banks. 33Q23 included a $72 million idiosyncratic C&I charge-off. NCO% excluding this charge-off is a non-GAAP measure and is reconciled to GAAP NCO% in the chart. $827 $842 $856 $865 $887 1.35% 1.36% 1.40% 1.40% 1.41% ACL ACL/Loans 2Q23 3Q23 4Q23 1Q24 2Q24 Allowance for credit losses (ACL) Non-performing loans (NPLs) $402 $394 $462 $505 $574 0.66% 0.64% 0.75% 0.82% 0.91% NPLs $ NPLs % 2Q23 3Q23 4Q23 1Q24 2Q24 • 2Q24 net charge-offs of $34 million decreased $6 million – NCO ratio of 0.22%1, which is below the peer average level for the past four quarters2 • Provision expense of $55 million in 2Q24 – 2Q24 ACL coverage ratio increased slightly to 1.41% • NPL ratio of 91bps up 9bps from 1Q24 – Within the commercial NPL portfolio, ~50% of loans are current on their payments Net charge-offs


 
14 13.6% 13.6% 14.0% 13.9% 13.7% CET1 ratio Tier 1 capital ratio Total capital ratio 2Q23 3Q23 4Q23 1Q24 2Q24 Earnings power supports return of capital to shareholders Capital Ratios $12.16 $0.36 $(0.15) $(0.02) $(0.08) $(0.05) $12.22 1Q24 NIAC Impact Common Dividend Mark on AFS & Hedges Share Buybacks Other 2Q24 • Achieved the near-term CET1 ratio target of 11.0% – Continued to generate capital through retained earnings, while supporting customer needs through organic deployment of capital into the loan portfolio – Returned $212 million of capital to shareholders through repurchases in second quarter, reducing CET1 by 30bps – Repurchased $366 million, or 25 million shares, of common stock year-to-date under the $650 million share repurchase program authorized in 1Q24 • TBVPS of $12.22 increased $0.06 versus 1Q24, driven by strong earnings, which supported the $0.15 common dividend and an $0.08 impact from share repurchases Tangible Book Value per Share (TBVPS) TBV per share is Non-GAAP and is reconciled to GAAP measures in the appendix. 1Other includes equity compensation. 2Net of change in intangibles. 2 11.3% 0.26% (0.11)% (0.30)% (0.07)% (0.04)% 11.0% 1Q24 Actual NIAC Common Dividend Share Buybacks Change in Loan Balances & Unfunded Commitments Other 2Q24 Estimate 1 Common Equity Tier 1 (CET1) 11.1% 11.1% 11.4% 11.3% 11.0% 12.3%12.4%12.1%12.1% 12.0% 1


 
15 Updated Full Year 2024 Outlook Earnings Drivers FY23 Adjusted Baseline FY24 Adjusted Expectations Comments Net Interest Income $2,556 million Updated: Flat - (2)% Prior: Up 1% – 4% Assumes relatively flat balance sheet in second half of 2024 and higher level of interest-bearing deposit costs Noninterest Income $699 million Up 6% – 10% Rebound in fixed income and mortgage from 2023 levels Noninterest Expense $1,884 million Up 4% – 6% Reflects investment in technology and personnel, as well as increased revenue-driven incentives. Operational efficiencies to offset increases beyond targeted expense growth Net Charge-Offs 0.28% 0.25% – 0.30% Reflects continued macroeconomic uncertainty Tax Rate 21.8% 21% – 23% Timing of discrete items impacts quarterly rate CET1 Ratio 11.4% ~11.0% Excess capital to be deployed organically, as well as potential for capital repatriation ROTCE and adjusted financial measures, including measures excluding deferred compensation, are Non-GAAP and are reconciled to GAAP measures in the appendix. Net interest income is adjusted to a fully taxable equivalent (“FTE”) basis assuming a statutory federal income tax of 21 percent and, where applicable, state income taxes. Variability in Deferred Compensation may impact growth rates in noninterest income and noninterest expense but should have an offsetting and immaterial impact on pretax income.


 
16 Diversified business model with highly attractive geographic footprint provides opportunity to deliver outperformance through a variety of economic cycles Strategic focus on delivering enhanced shareholder value 1 Strong balance sheet and prudent risk management to drive increased capital efficiency and returns 2 Client-centric model committed to serving as trusted advisor through Capital + Counsel as a core differentiator3 Disciplined execution of strategy and continuous improvement mindset to further enhance efficiency and productivity 4 Investing in the well-being of associates and communities is central to our purpose5


 
APPENDIX 17


 
18 1Q 07 1Q 08 1Q 09 1Q 10 1Q 11 1Q 12 1Q 13 1Q 14 1Q 15 1Q 16 1Q 17 1Q 18 1Q 19 1Q 20 1Q 21 1Q 22 1Q 23 1Q 24 —% 2% 4% 6% $0.0 $0.5 $1.0 $1.5 $2.0 FHN Financial’s strong full-cycle returns are counter-cyclical to bank franchise Lower Revenue Market Factor Higher Revenue 2020 Environment 2023 Environment Up Rate Direction Down Rapid decrease in short term rates Rapid increase in short term rates Extreme (low/high) Market Volatility Moderate Moderate Extreme - MOVE index sharply higher Flat/Inverted Yield Curve Shape Steep Positive sloped Strongly inverted Tighter Corporate & Mortgage Spreads Wider Wider Stable Lower Depository Liquidity Greater Abundant - fueled by stimulus Constrained - exacerbated by QT • FHN Financial provides fixed income sales & trading, investment advisory, interest rate derivatives and other services to financial institutions, municipalities and other institutional investors across the United States and internationally • 4,000+ active institutional clients • Clients include approximately one third of all US banks and 50% of banks with portfolios over $100 million in size • The variable compensation payout ratio on marginal revenue is approximately 60% FOMC easing during GFC FOMC ZIRP Policy Normalizing FOMC Policy FOMC easing during pandemic FOMC tightening to fight inflation Fed Funds Average ADR in millions $1.6 $1.2 $0.7 $1.3 $0.5


 
19 $38.0 59% $22.0 34% $4.8 7% Insured Uninsured & uncollateralized Collateralized Attractive portfolio diversified by customer type, product, and geography 66% of 2Q24 deposits insured or collateralized 2Q24 diversified deposit mix by product 25% 39% 11% 24% Demand deposit accounts Savings Time deposits Other interest-bearing deposits • Stable, cost-effective deposits from a diverse commercial and consumer client base across 12-state footprint and specialty lines of business • Commercial deposits of $35.8 billion or 55% and consumer of $29.0 billion or 45% • Attractive lower-cost deposit base with 25% comprised of noninterest bearing products • Contingency funding plan equates to ~152% of uninsured or uncollateralized deposits Banking centers in attractive Southeast footprint1 All deposit balances are period-end unless otherwise noted. 1One banking center in New York not shown. $64.8B


 
20 <$5 $3.4B $5-$10 $2.0B $10-$20 $3.0B $20-$30 $2.5B $30-$40 $2.2B $40-$50 $0.8B >$50 $0.8B $1.8B $3.1B $3.1B $6.6B Floating Fixed 2024 2025 2026 2027+ 79% 85% 79% 61% CRE by Loan Size2 CRE by State3 Maturity Schedule CRE by Property Type High credit quality, diversified CRE portfolio All loan balances are period end unless otherwise noted. 1FHN’s CRE metrics database includes information for all loans in the Pro CRE LOB, as well as market/investor CRE loans $5+ million in commitments, which encompasses 86% of total CRE commitments. 2Loan size ranges in millions and dollar amounts are total funded balances in that size range to any single customer. 3Excludes CRE balances totaling $1.4B outside the Southeast and New York footprint. • Disciplined risk management practice and underwriting standards across CRE portfolio • No significant upcoming repricing event, as ~72% of loans are floating and maturities are dispersed over time • Granular portfolio with only 16 loans with commitments above $50 million • No property type comprises over 8% of total loans • Average debt service coverage of 1.4x and average stabilized LTV of 54%1 $ in billions $14.7B 21% 15% 21% 39% 34% 10% 9% 16% 15% 9% 4% 3% Multi-Family Traditional Office Medical Office Industrial Retail Hospitality Other Land + Residential


 
21 0.5M 1.4M 1.3M 13.3M 2024 2025 2026 2027+ Multi-Family2 $ in millions Multi-Family CRE1 Strong underwriting in the office and multi-family portfolios All loan balances are period end unless otherwise noted. 1FHN’s CRE metrics database includes information for all loans in the Pro CRE LOB, as well as market/investor CRE loans $5+ million in commitments, which encompasses 65% of traditional office CRE commitments and 87% of multi-family CRE commitments. 2Excludes traditional office balances totaling $61 million and multi-family balances totaling $88 million outside of the Southeast and New York footprint. Maps encompass entirety of traditional office and multi-family CRE portfolios. Traditional Office2 $ in millions • Average debt service coverage of 1.2x • Average stabilized LTV of 52% • Average property has 240 units • Low exposure to rent control, which is mostly related to low and moderate income housing focused on serving the communities in our footprint Office CRE • Medical office comprises 48% of office exposure • Only 8 buildings are 10 stories or taller • Within the traditional office portfolio1: – Average debt service coverage of 1.5x – Average stabilized LTV of 59% – Vacancy rate of 13% Office Lease Renewals Square Feet in Millions


 
22 80% 14% 5% Real estate installment loans HELOC Credit card and other Granular C&I portfolio and real estate backed consumer portfolio C&I by Industry 20% 20% 12% 11% 9% 7% 6% 6% 5% 4% TN All Other FL TX Other Southeastern NC LA CA GA AL C&I by State Consumer Portfolio by Product 11% 11% 9% 8% 7%7%7% 6% 5% 4% 26% Real Estate & Leasing Finance & Insurance Mortgage Warehouse Healthcare & Social Assistance Wholesale Trade Manufacturing Accommodation & Food Service Retail Trade Transportation & Warehousing Energy Other 14 Industries • The C&I portfolio is both geographically diverse and benefits from a lack of industry concentration – No more than 11% C&I exposure to any industry – Southeastern footprint is economically and demographically strong – Exposure to markets outside the southeast primarily driven by specialty businesses • Consumer portfolio focused on real estate, with negligible exposure to auto or consumer credit card All loan balances are period end unless otherwise noted. $33.5B $14.7B


 
23 $0.3B $0.3B $0.3B $0.3B 3Q24 4Q24 1Q25 2Q25 Agency MBS 42% Agency CMBS 26% Agency CMO 14% U.S. Agencies & Treasury 12% States & Municipalities 6% $10.2B $9.8B $9.4B $9.6B $9.3B 2.49% 2.54% 2.62% 2.54% 2.58% Average AFS Securities Average HTM Securities Average Yield 2Q23 3Q23 4Q23 1Q24 2Q24 Investment portfolio prudently managed to support liquidity and IRR • 2Q24 investment portfolio represents ~11% of total assets – Moderate total portfolio effective duration of 4.9 – Low reliance on HTM designation at ~14% of total portfolio – 94% U.S. Government or Agency-backed by GSEs • 2Q24 total unrealized losses on the AFS and HTM portfolios of $1.4B, consistent with 1Q24 1Calculated based on period end market values. 2Estimated as of 6/30/24; includes maturities and projected calls. Steady principal cash flows2 Investment portfolio 2Q23 3Q23 4Q23 1Q24 2Q24 % of total assets 12% 12% 11% 12% 11% Pre-tax unrealized losses ($1.4B) ($1.8B) ($1.3B) ($1.4B) ($1.4B) Effective duration 5.2 5.2 5.0 5.0 4.9 Unencumbered securities / total securities1 35% 33% 30% 27% 25% 2Q24 investment portfolio composition1


 
24 Notable Items * 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 discrete benefit primarily attributable to the resolution of merger-related tax items and 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. $ in millions, except EPS 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) — Series D Preferred Stock (7) — — — — EPS impact of notable items $ 0.02 $ 0.02 $ 0.01 $ 0.04 $ (0.17)


 
25 Reconciliation to GAAP financials Slides in this presentation use Non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. (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. $s in millions, except per share data Quarterly, Unaudited 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


 
26 Reconciliation to GAAP financials Slides in this presentation use Non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. $s in millions Quarterly, Unaudited 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 notable items as detailed on page 24 (b) Includes goodwill and other intangible assets, net of amortization. Numbers may not foot due to rounding


 
27 Reconciliation to GAAP financials Slides in this presentation use Non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. $s in millions Quarterly, Unaudited 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 notable items as detailed on page 24 (b) Includes goodwill and other intangible assets, net of amortization. Numbers may not foot due to rounding


 
28 Reconciliation to GAAP financials Slides in this presentation use Non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. Period-end Average ($s in millions) 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) — % $s in millions Quarterly, Unaudited 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 %


 
29 Reconciliation to GAAP financials Slides in this presentation use Non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. (a) Adjusted for notable items as detailed on page 24. Numbers may not foot due to rounding $s in millions Quarterly, Unaudited 2Q24 1Q24 Adjusted noninterest income excluding deferred compensation income Noninterest income (GAAP) $ 186 $ 194 Plus notable items (pretax) (GAAP) (a) — — Adjusted noninterest income (Non-GAAP) $ 186 $ 194 Less deferred compensation income (GAAP) 3 9 Adjusted noninterest income excluding deferred compensation income (Non-GAAP) $ 183 $ 186 Adjusted noninterest expense excluding deferred compensation expense Noninterest expense (GAAP) $ 500 $ 515 Plus notable items (pretax) (GAAP) (a) (5) (15) Adjusted noninterest expense (Non-GAAP) $ 495 $ 500 Less deferred compensation expense (GAAP) 3 9 Adjusted noninterest expense excluding deferred compensation expense (Non-GAAP) $ 492 $ 491 Adjusted personnel expense excluding deferred compensation expense Personnel expense (GAAP) $ 279 $ 301 Plus notable items (pretax) (GAAP) (a) (1) (5) Adjusted personnel expense (Non-GAAP) $ 279 $ 295 Less deferred compensation expense (GAAP) 3 9 Adjusted personnel expense excluding deferred compensation expense (Non-GAAP) $ 276 $ 286 $s in millions Quarterly, Unaudited 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