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Published: 2022-04-19 06:50:44 ET

EX-99.3 4 q122financialsupplement.htm EX-99.3 Document

Financial Supplement

First Quarter 2022


Table of Contents						Page

Consolidated Financial Highlights						3

Consolidated Statements of Operations (unaudited)						5

Consolidated Balance Sheets (unaudited)						6

Loans and Deposits						7

Average Balance Sheets, Annualized Yields and Rates						8

Mortgage Banking Fees						9

Segment Financial Highlights						10

Credit-Related Information:
Nonaccrual loans and leases						13
Loans and Leases 90 Days or More Past Due and Accruing						14
Charge-offs, Recoveries, and Related Ratios						15
Summary of Changes in the Components of the Allowance for Credit Losses						17

Capital and Ratios						18

Non-GAAP Financial Measures and Reconciliations						19
The information in this Financial Supplement is preliminary and based on company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying pages. The Company does not undertake an obligation to, and disclaims any duty to, update any of the information provided. Any forward-looking statements in this Financial Supplement are subject to the forward-looking statements language contained in the Company’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which can be found on the SEC’s website (www.sec.gov) or on the Company’s website (www.citizensbank.com). The Company’s future financial performance is subject to the risks and uncertainties described in its SEC filings.

CONSOLIDATED FINANCIAL HIGHLIGHTS

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


	QUARTERLY TRENDS
											1Q22 Change
	1Q22		4Q21		3Q21		2Q21		1Q21		4Q21				1Q21
											$/bps		%		$/bps		%
SELECTED OPERATING DATA
Total revenue	$1,645		$1,720		$1,659		$1,609		$1,659		($75)		(4	%)	($14)		(1	%)
Noninterest expense	1,106		1,061		1,011		991		1,018		45		4		88		9
Profit before provision (benefit) for credit losses	539		659		648		618		641		(120)		(18)		(102)		(16)
Provision (benefit) for credit losses	3		(25)		(33)		(213)		(140)		28		NM		143		NM
NET INCOME	420		530		530		648		611		(110)		(21)		(191)		(31)
Net income, Underlying1	476		569		546		656		626		(93)		(16)		(150)		(24)
Net income available to common stockholders	396		498		504		616		588		(102)		(20)		(192)		(33)
Net income available to common stockholders, Underlying1	452		537		520		624		603		(85)		(16)		(151)		(25)
PER COMMON SHARE DATA
Basic earnings	$0.94		$1.17		$1.18		$1.45		$1.38		($0.23)		(20	%)	($0.44)		(32	%)
Diluted earnings	0.93		1.17		1.18		1.44		1.37		(0.24)		(21)		(0.44)		(32)
Basic earnings, Underlying1	1.07		1.26		1.22		1.47		1.41		(0.19)		(15)		(0.34)		(24)
Diluted earnings, Underlying1	1.07		1.26		1.22		1.46		1.41		(0.19)		(15)		(0.34)		(24)
Cash dividends declared and paid per common share	0.39		0.39		0.39		0.39		0.39		—		—		—		—
Book value per common share	47.42		50.71		50.23		49.72		48.57		(3.29)		(6)		(1.15)		(2)
Tangible book value per common share	30.97		34.61		34.44		33.95		32.79		(3.64)		(11)		(1.82)		(6)
Dividend payout ratio	41	%	33	%	33	%	27	%	28	%	800	bps			1,300	bps
Dividend payout ratio, Underlying1	36		31		32		27		28		500	bps			800	bps
COMMON SHARES OUTSTANDING
Average: Basic	422,401,747		424,697,880		426,086,717		425,948,706		425,953,716		(2,296,133)		(1	%)	(3,551,969)		(1	%)
Diluted	424,670,871		426,868,106		427,840,964		427,561,572		427,880,530		(2,197,235)		(1)		(3,209,659)		(1)
Common shares at period-end	423,031,985		422,137,197		426,199,576		426,083,143		425,930,159		894,788		—		(2,898,174)		(1)

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

CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio and headcount data)


	QUARTERLY TRENDS
											1Q22 Change
	1Q22		4Q21		3Q21		2Q21		1Q21		4Q21			1Q21
											$/bps		%	$/bps		%
FINANCIAL RATIOS
Net interest margin	2.75	%	2.66	%	2.72	%	2.71	%	2.75	%	9	bps		—	bps
Net interest margin, FTE1	2.75		2.66		2.72		2.72		2.76		9			(1)
Return on average common equity	7.65		9.26		9.39		11.85		11.57		(161)			(392)
Return on average common equity, Underlying2	8.75		9.97		9.70		12.02		11.85		(122)			(310)
Return on average tangible common equity	11.36		13.57		13.71		17.50		17.17		(221)			(581)
Return on average tangible common equity, Underlying2	12.99		14.61		14.17		17.74		17.59		(162)			(460)
Return on average total assets	0.90		1.12		1.13		1.41		1.36		(22)			(46)
Return on average total assets, Underlying2	1.03		1.20		1.16		1.43		1.39		(17)			(36)
Return on average total tangible assets	0.94		1.17		1.17		1.46		1.41		(23)			(47)
Return on average total tangible assets, Underlying2	1.06		1.25		1.21		1.48		1.44		(19)			(38)
Effective income tax rate	21.70		22.40		22.35		21.96		21.76		(70)			(6)
Effective income tax rate, Underlying2	21.70		22.61		22.45		22.01		21.85		(91)			(15)
Efficiency ratio	67.23		61.68		60.92		61.63		61.35		555			588
Efficiency ratio, Underlying2	64.28		58.71		59.55		60.92		60.19		557			409
Noninterest income as a % of total revenue	30	%	35	%	31	%	30	%	33	%	(500)	bps		(300)	bps
CAPITAL RATIOS - PERIOD-END (PRELIMINARY)
CET1 capital ratio	9.7	%	9.9	%	10.3	%	10.3	%	10.1	%
Tier 1 capital ratio	10.9		11.1		11.6		11.6		11.4
Total capital ratio	12.5		12.7		13.4		13.5		13.4
Tier 1 leverage ratio	9.6		9.7		9.7		9.7		9.5
Tangible common equity ratio	7.1		8.1		8.1		8.1		7.7
SELECTED BALANCE SHEET DATA
Loan-to-deposit ratio (period-end balances)	82.70	%	83.03	%	81.01	%	81.38	%	80.74	%	(33)	bps		196	bps
Loan-to-deposit ratio (average balances)	83.28		81.83		80.75		82.14		83.77		145	bps		(49)	bps
Full-time equivalent colleagues	17,843		17,463		17,366		17,472		17,405		380		2	438		3

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

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

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in millions)


	QUARTERLY TRENDS
						1Q22 Change
	1Q22	4Q21	3Q21	2Q21	1Q21	4Q21			1Q21
						$	%		$	%
INTEREST INCOME
Interest and fees on loans and leases	$1,048	$1,056	$1,078	$1,058	$1,061	($8)	(1	%)	($13)	(1	%)
Interest and fees on loans held for sale	16	19	21	24	18	(3)	(16)		(2)	(11)
Interest and fees on other loans held for sale	7	4	1	2	6	3	75		1	17
Investment securities	138	119	116	124	128	19	16		10	8
Interest-bearing deposits in banks	4	4	6	3	3	—	—		1	33
Total interest income	1,213	1,202	1,222	1,211	1,216	11	1		(3)	—
INTEREST EXPENSE
Deposits	25	33	35	42	50	(8)	(24)		(25)	(50)
Short-term borrowed funds	—	1	—	—	—	(1)	(100)		—	—
Long-term borrowed funds	41	42	42	45	49	(1)	(2)		(8)	(16)
Total interest expense	66	76	77	87	99	(10)	(13)		(33)	(33)
Net interest income	1,147	1,126	1,145	1,124	1,117	21	2		30	3
NONINTEREST INCOME
Capital markets fees	93	184	72	91	81	(91)	(49)		12	15
Service charges and fees	98	100	110	100	99	(2)	(2)		(1)	(1)
Mortgage banking fees	69	76	108	85	165	(7)	(9)		(96)	(58)
Card fees	60	65	66	64	55	(5)	(8)		5	9
Trust and investment services fees	61	60	61	60	58	1	2		3	5
Letter of credit and loan fees	38	41	39	38	38	(3)	(7)		—	—
Foreign exchange and derivative products	51	35	29	28	28	16	46		23	82
Securities gains, net	4	1	3	3	3	3	NM		1	33
Other income	24	32	26	16	15	(8)	(25)		9	60
Total noninterest income	498	594	514	485	542	(96)	(16)		(44)	(8)
TOTAL REVENUE	1,645	1,720	1,659	1,609	1,659	(75)	(4)		(14)	(1)
Provision (benefit) for credit losses	3	(25)	(33)	(213)	(140)	28	NM		143	NM
NONINTEREST EXPENSE
Salaries and employee benefits	594	551	509	524	548	43	8		46	8
Equipment and software	150	146	157	155	152	4	3		(2)	(1)
Outside services	169	175	144	137	139	(6)	(3)		30	22
Occupancy	83	86	77	82	88	(3)	(3)		(5)	(6)
Other operating expense	110	103	124	93	91	7	7		19	21
Total noninterest expense	1,106	1,061	1,011	991	1,018	45	4		88	9
Income before income tax expense	536	684	681	831	781	(148)	(22)		(245)	(31)
Income tax expense	116	154	151	183	170	(38)	(25)		(54)	(32)
Net income	$420	$530	$530	$648	$611	($110)	(21	%)	($191)	(31	%)
Net income, Underlying1	$476	$569	$546	$656	$626	($93)	(16	%)	($150)	(24	%)
Net income available to common stockholders	$396	$498	$504	$616	$588	($102)	(20	%)	($192)	(33	%)
Net income available to common stockholders, Underlying1	$452	$537	$520	$624	$603	($85)	(16	%)	($151)	(25	%)

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

CONSOLIDATED BALANCE SHEETS (unaudited)

(in millions)


PERIOD-END BALANCES	AS OF					MARCH 31, 2022 CHANGE
	Mar 31, 2022	Dec 31, 2021	Sept 30, 2021	June 30, 2021	Mar 31, 2021	December 31, 2021			March 31, 2021
						$	%		$	%
ASSETS
Cash and due from banks	$1,223	$1,155	$1,145	$1,035	$1,117	$68	6	%	$106	9	%
Interest-bearing cash and due from banks	8,713	8,003	12,571	11,606	13,543	710	9		(4,830)	(36)
Interest-bearing deposits in banks	685	316	289	401	308	369	117		377	122
Debt securities available for sale, at fair value	25,319	26,067	24,911	24,583	24,467	(748)	(3)		852	3
Debt securities held to maturity	2,056	2,242	2,492	2,711	2,995	(186)	(8)		(939)	(31)
Loans held for sale, at fair value	1,717	2,733	3,177	3,616	4,304	(1,016)	(37)		(2,587)	(60)
Other loans held for sale	99	735	93	82	75	(636)	(87)		24	32
Loans and leases	131,305	128,163	123,318	122,581	122,195	3,142	2		9,110	7
Less: Allowance for loan and lease losses	(1,720)	(1,758)	(1,855)	(1,947)	(2,194)	38	(2)		474	(22)
Net loans and leases	129,585	126,405	121,463	120,634	120,001	3,180	3		9,584	8
Derivative assets	1,675	1,216	1,769	1,655	1,298	459	38		377	29
Premises and equipment	793	768	732	735	743	25	3		50	7
Bank-owned life insurance	2,960	2,843	2,428	2,268	2,135	117	4		825	39
Goodwill	7,232	7,116	7,065	7,050	7,050	116	2		182	3
Other assets	10,040	8,810	8,872	8,728	9,181	1,230	14		859	9
TOTAL ASSETS	$192,097	$188,409	$187,007	$185,104	$187,217	$3,688	2	%	$4,880	3	%
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing	$50,113	$49,443	$48,184	$47,480	$46,067	$670	1	%	$4,046	9	%
Interest-bearing	108,663	104,918	104,037	103,156	105,282	3,745	4		3,381	3
Total deposits	158,776	154,361	152,221	150,636	151,349	4,415	3		7,427	5


Short-term borrowed funds	25	74	8	62	70	(49)	(66)		(45)	(64)
Derivative liabilities	635	197	187	144	111	438	222		524	NM

Long-term borrowed funds:
FHLB advances	20	19	20	18	19	1	5		1	5
Senior debt	4,290	5,326	5,345	5,357	6,714	(1,036)	(19)		(2,424)	(36)
Subordinated debt and other debt	1,584	1,587	1,582	1,582	1,583	(3)	—		1	—
Total long-term borrowed funds	5,894	6,932	6,947	6,957	8,316	(1,038)	(15)		(2,422)	(29)
Other liabilities	4,693	3,425	4,221	4,106	4,718	1,268	37		(25)	(1)
TOTAL LIABILITIES	170,023	164,989	163,584	161,905	164,564	5,034	3		5,459	3
STOCKHOLDERS' EQUITY
Preferred stock:
$25.00 par value, 100,000,000 shares authorized for each of the periods presented	2,014	2,014	2,014	2,014	1,965	—	—		49	2
Common stock:
$0.01 par value, 1,000,000,000 shares authorized for each of the periods presented	6	6	6	6	6	—	—		—	—
Additional paid-in capital	19,021	19,005	18,981	18,964	18,945	16	—		76	—
Retained earnings	8,209	7,978	7,648	7,314	6,866	231	3		1,343	20
Treasury stock, at cost	(4,918)	(4,918)	(4,718)	(4,718)	(4,718)	—	—		(200)	(4)
Accumulated other comprehensive income (loss)	(2,258)	(665)	(508)	(381)	(411)	(1,593)	(240)		(1,847)	NM
TOTAL STOCKHOLDERS' EQUITY	22,074	23,420	23,423	23,199	22,653	(1,346)	(6)		(579)	(3)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$192,097	$188,409	$187,007	$185,104	$187,217	$3,688	2	%	$4,880	3	%
Memo: Total tangible common equity	$13,100	$14,609	$14,677	$14,466	$13,964	($1,509)	(10	%)	($864)	(6	%)

LOANS AND DEPOSITS

(in millions)


PERIOD-END BALANCES	AS OF					MARCH 31, 2022 CHANGE
	Mar 31, 2022	Dec 31, 2021	Sept 30, 2021	June 30, 2021	Mar 31, 2021	Dec 31, 2021			March 31, 2021
						$	%		$	%
LOANS AND LEASES
Commercial and industrial	$45,724	$44,500	$41,854	$42,842	$44,058	$1,224	3	%	$1,666	4	%
Commercial real estate	14,268	14,264	14,508	14,412	14,553	4	—		(285)	(2)
Leases	1,529	1,586	1,593	1,829	1,802	(57)	(4)		(273)	(15)
Total commercial	61,521	60,350	57,955	59,083	60,413	1,171	2		1,108	2
Residential mortgages	24,211	22,822	21,513	20,538	19,202	1,389	6		5,009	26




Home equity	12,264	12,015	11,889	11,841	11,854	249	2		410	3
Automobile	14,439	14,549	13,492	12,780	12,344	(110)	(1)		2,095	17
Education	13,306	12,997	13,000	12,800	12,691	309	2		615	5


Other retail	5,564	5,430	5,469	5,539	5,691	134	2		(127)	(2)
Total retail	69,784	67,813	65,363	63,498	61,782	1,971	3		8,002	13
Total loans and leases	$131,305	$128,163	$123,318	$122,581	$122,195	$3,142	2	%	$9,110	7	%
Loans held for sale, at fair value	1,717	2,733	3,177	3,616	4,304	(1,016)	(37)		(2,587)	(60)
Other loans held for sale	99	735	93	82	75	(636)	(87)		24	32
Loans and leases and loans held for sale	$133,121	$131,631	$126,588	$126,279	$126,574	$1,490	1	%	$6,547	5	%

DEPOSITS
Demand	$50,113	$49,443	$48,184	$47,480	$46,067	$670	1	%	$4,046	9	%
Money market	45,342	47,216	48,935	48,150	51,074	(1,874)	(4)		(5,732)	(11)
Checking with interest	32,417	30,409	27,985	28,074	26,883	2,008	7		5,534	21
Regular savings	26,104	22,030	21,166	20,382	19,634	4,074	18		6,470	33
Term	4,800	5,263	5,951	6,550	7,691	(463)	(9)		(2,891)	(38)
Total deposits	$158,776	$154,361	$152,221	$150,636	$151,349	$4,415	3	%	$7,427	5	%


AVERAGE BALANCE SHEETS, ANNUALIZED YIELDS AND RATES
(in millions, except rates)

	QUARTERLY TRENDS												1Q22 Change
	1Q22				4Q21				1Q21				4Q21			1Q21
	Average Balances	Interest	Rate		Average Balances	Interest	Rate		Average Balances	Interest	Rate		Average Balances	Interest	Rate	Average Balances	Interest	Rate
INTEREST-EARNING ASSETS
Interest-bearing cash and due from banks and deposits in banks	$8,055	$4	0.21	%	$11,152	$4	0.15	%	$10,861	$3	0.11	%	($3,097)	$—	6 bps	($2,806)	$1	10 bps
Taxable investment securities	29,245	138	1.88		28,191	119	1.68		27,031	128	1.89		1,054	19	20	2,214	10	(1)
Non-taxable investment securities	2	—	2.60		2	—	2.60		3	—	2.60		—	—	—	(1)	—	—
Total investment securities	29,247	138	1.88		28,193	119	1.68		27,034	128	1.89		1,054	19	20	2,213	10	(1)

Commercial and industrial	44,947	328	2.91		43,070	345	3.12		44,287	347	3.12		1,877	(17)	(21)	660	(19)	(21)
Commercial real estate	14,066	90	2.57		14,261	95	2.61		14,675	94	2.57		(195)	(5)	(4)	(609)	(4)	—
Leases	1,560	11	2.81		1,569	12	3.00		1,915	13	2.69		(9)	(1)	(19)	(355)	(2)	12
Total commercial	60,573	429	2.83		58,900	452	2.99		60,877	454	2.98		1,673	(23)	(16)	(304)	(25)	(15)
Residential mortgages	23,461	169	2.88		22,047	154	2.81		19,388	148	3.05		1,414	15	7	4,073	21	(17)
Home equity	12,124	90	3.02		11,948	91	3.02		12,001	95	3.20		176	(1)	—	123	(5)	(18)
Automobile	14,534	127	3.55		13,976	130	3.67		12,229	125	4.14		558	(3)	(12)	2,305	2	(59)
Education	13,034	131	4.07		12,885	133	4.09		12,436	134	4.38		149	(2)	(2)	598	(3)	(31)
Other retail	5,428	102	7.63		5,453	96	7.07		5,916	105	7.25		(25)	6	56	(488)	(3)	38
Total retail	68,581	619	3.65		66,309	604	3.63		61,970	607	3.96		2,272	15	2	6,611	12	(31)
Total loans and leases	129,154	1,048	3.26		125,209	1,056	3.33		122,847	1,061	3.47		3,945	(8)	(7)	6,307	(13)	(21)
Loans held for sale, at fair value	2,366	16	2.70		3,133	19	2.44		3,254	18	2.27		(767)	(3)	26	(888)	(2)	43
Other loans held for sale	454	7	5.89		321	4	4.85		385	6	6.30		133	3	104	69	1	(41)
Total interest-earning assets	169,276	1,213	2.88		168,008	1,202	2.83		164,381	1,216	2.97		1,268	11	5	4,895	(3)	(9)


Noninterest-earning assets	19,041				19,220				18,188				(179)			853
TOTAL ASSETS	$188,317				$187,228				$182,569				$1,089			$5,748
INTEREST-BEARING LIABILITIES
Checking with interest	$30,417	5	0.07		$28,075	6	0.09		$26,116	6	0.09		$2,342	(1)	(2)	$4,301	($1)	(2)
Money market	47,220	12	0.10		48,512	17	0.14		49,536	22	0.18		(1,292)	(5)	(4)	(2,316)	(10)	(8)
Regular savings	23,835	5	0.08		21,575	4	0.09		18,611	5	0.11		2,260	1	(1)	5,224	—	(3)
Term	4,970	3	0.29		5,636	6	0.33		8,572	17	0.83		(666)	(3)	(4)	(3,602)	(14)	(54)
Total interest-bearing deposits	106,442	25	0.10		103,798	33	0.13		102,835	50	0.20		2,644	(8)	(3)	3,607	(25)	(10)
Short-term borrowed funds	29	—	3.50		24	1	5.15		150	—	0.46		5	(1)	(165)	(121)	—	304
FHLB advances	20	—	0.81		18	—	0.85		19	—	0.92		2	—	(4)	1	—	(11)
Senior debt	4,461	24	2.12		5,338	25	1.87		6,732	32	1.91		(877)	(1)	25	(2,271)	(8)	21
Subordinated debt and other debt	1,585	17	4.21		1,587	17	4.35		1,585	17	4.22		(2)	—	(14)	—	—	(1)
Total long-term borrowed funds	6,066	41	2.66		6,943	42	2.43		8,336	49	2.35		(877)	(1)	23	(2,270)	(8)	31
Total borrowed funds	6,095	41	2.66		6,967	43	2.44		8,486	49	2.32		(872)	(2)	22	(2,391)	(8)	34
Total interest-bearing liabilities	112,537	66	0.23		110,765	76	0.27		111,321	99	0.36		1,772	(10)	(4)	1,216	(33)	(13)
Demand deposits	48,641				49,206				43,814				(565)			4,827
Other liabilities	4,144				3,924				4,858				220			(714)
TOTAL LIABILITIES	165,322				163,895				159,993				1,427			5,329
STOCKHOLDERS' EQUITY	22,995				23,333				22,576				(338)			419
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$188,317				$187,228				$182,569				$1,089			$5,748
INTEREST RATE SPREAD			2.65	%			2.56	%			2.62	%			9			3
NET INTEREST MARGIN AND NET INTEREST INCOME		$1,147	2.75	%		$1,126	2.66	%		$1,117	2.75	%		$21	9		$30	—
NET INTEREST MARGIN AND NET INTEREST INCOME, FTE1		$1,149	2.75	%		$1,128	2.66	%		$1,120	2.76	%		$21	9		$29	(1)
Memo: Total deposits (interest-bearing and demand)	$155,083	$25	0.07	%	$153,004	$33	0.09	%	$146,649	$50	0.14	%	$2,079		(2) bps	$8,434	($25)	(7) bps

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

MORTGAGE BANKING FEES SUMMARY

(in millions, except ratio data)


	QUARTERLY TRENDS
											1Q22 Change
	1Q22		4Q21		3Q21		2Q21		1Q21		4Q21				1Q21
											$/bps		%		$/bps		%
MORTGAGE BANKING FEES1
Production revenue	$31		$60		$98		$86		$140		($29)		(48	%)	($109)		(78	%)
Mortgage servicing revenue	28		14		9		13		—		14		100		28		100
MSR valuation changes, net of hedge impact	10		2		1		(14)		25		8		NM		(15)		(60)
Total mortgage banking fees	$69		$76		$108		$85		$165		($7)		(9	%)	($96)		(58	%)

Pull-through adjusted locks	$4,936		$5,785		$7,359		$8,154		$8,762		($849)		(15	%)	($3,826)		(44	%)

Production revenue as a percentage of Pull-through adjusted locks	0.63	%	1.05	%	1.32	%	1.05	%	1.59	%	(42)	bps			(96)	bps



RESIDENTIAL REAL ESTATE ORIGINATIONS
Retail	$3,275		$3,794		$3,560		$3,956		$3,744		($519)		(14	%)	($469)		(13	%)
Third Party	4,101		6,084		6,749		7,443		7,398		(1,983)		(33)		(3,297)		(45)
Total	$7,376		$9,878		$10,309		$11,399		$11,142		($2,502)		(25	%)	(3,766)		(34	%)

Originated for sale	$5,521		$7,814		$8,457		$9,592		$9,716		($2,293)		(29	%)	($4,195)		(43	%)
Originated for investment	1,855		2,064		1,852		1,807		1,426		(209)		(10)		429		30
Total	$7,376		$9,878		$10,309		$11,399		$11,142		($2,502)		(25	%)	($3,766)		(34	%)

MORTGAGE SERVICING INFORMATION (UPB)
Loans serviced for others	$92,804		$90,189		$87,350		$84,596		$81,805		$2,615		3	%	$10,999		13	%
Owned loans serviced	25,283		24,855		23,988		23,329		22,762		428		2		2,521		11
Total	$118,087		$115,044		$111,338		$107,925		$104,567		$3,043		3	%	$13,520		13	%

MSR at fair value	$1,241		$1,029		$978		$902		$893		$212		21	%	$348		39	%

1Beginning in the second quarter of 2021, mortgage banking fees are presented on a consolidated basis. Prior periods have been adjusted to conform with the current period presentation.

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING

(in millions, except ratio data)


	QUARTERLY TRENDS
CONSUMER BANKING											1Q22 Change
	1Q22		4Q21		3Q21		2Q21		1Q21		4Q21				1Q21
											$/bps		%		$/bps		%
Net interest income1	$857		$883		$919		$897		$863		($26)		(3	%)	($6)		(1	%)
Noninterest income	257		274		315		283		351		(17)		(6)		(94)		(27)
Total revenue	1,114		1,157		1,234		1,180		1,214		(43)		(4)		(100)		(8)
Noninterest expense	784		737		749		751		750		47		6		34		5
Profit before provision (benefit) for credit losses	330		420		485		429		464		(90)		(21)		(134)		(29)
Net charge-offs	49		46		35		45		59		3		7		(10)		(17)
Income before income tax expense	281		374		450		384		405		(93)		(25)		(124)		(31)
Income tax expense	72		95		114		98		103		(23)		(24)		(31)		(30)
Net income	$209		$279		$336		$286		$302		($70)		(25	%)	($93)		(31	%)
AVERAGE BALANCES
Total assets	$77,551		$76,077		$75,070		$75,600		$75,283		$1,474		2	%	$2,268		3	%
Total loans and leases2	73,233		71,925		70,984		71,389		70,188		1,308		2		3,045		4
Deposits	104,663		101,642		100,968		100,933		97,180		3,021		3		7,483		8
Interest-earning assets	74,052		72,796		71,879		72,308		71,135		1,256		2		2,917		4
KEY METRICS
Net interest margin	4.69	%	4.82	%	5.07	%	4.97	%	4.93	%	(13)	bps			(24)	bps
Efficiency ratio	70.38		63.68		60.73		63.62		61.79		670	bps			859	bps
Loan-to-deposit ratio (period-end balances)	66.23		68.32		68.15		67.72		66.44		(209)	bps			(21)	bps
Loan-to-deposit ratio (average balances)	68.04		67.97		67.25		67.21		68.99		7	bps			(95)	bps
Return on average total tangible assets	1.10		1.46		1.78		1.52		1.63		(36)	bps			(53)	bps

1Effective January 1, 2022, the Company refined its FTP credit methodology for deposits provided by each business segment.

2Includes loans held for sale.

SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING

(in millions, except ratio data)


	QUARTERLY TRENDS
COMMERCIAL BANKING											1Q22 Change
	1Q22		4Q21		3Q21		2Q21		1Q21		4Q21				1Q21
											$/bps		%		$/bps		%
Net interest income1	$416		$438		$428		$419		$421		($22)		(5	%)	($5)		(1	%)
Noninterest income	213		293		168		178		170		(80)		(27)		43		25
Total revenue	629		731		596		597		591		(102)		(14)		38		6
Noninterest expense	272		294		226		226		227		(22)		(7)		45		20
Profit before provision (benefit) for credit losses	357		437		370		371		364		(80)		(18)		(7)		(2)
Net charge-offs	12		6		15		34		101		6		100		(89)		(88)
Income before income tax expense	345		431		355		337		263		(86)		(20)		82		31
Income tax expense	74		95		81		72		52		(21)		(22)		22		42
Net income	$271		$336		$274		$265		$211		($65)		(19	%)	$60		28	%
AVERAGE BALANCES
Total assets	$61,118		$58,501		$56,702		$57,527		$57,738		$2,617		4	%	$3,380		6	%
Total loans and leases2	58,007		55,550		53,815		54,758		54,813		2,457		4		3,194		6
Deposits	44,520		45,475		45,465		44,049		43,974		(955)		(2)		546		1
Interest-earning assets	58,312		55,891		54,177		55,143		55,175		2,421		4		3,137		6
KEY METRICS
Net interest margin	2.89	%	3.11	%	3.14	%	3.05	%	3.09	%	(22)	bps			(20)	bps
Efficiency ratio	43.32		40.16		38.02		37.86		38.33		316	bps			499	bps
Loan-to-deposit ratio (period-end balances)	132.70		125.31		116.54		118.72		120.66		739	bps			1,204	bps
Loan-to-deposit ratio (average balances)	128.49		120.81		117.65		123.32		123.53		768	bps			496	bps
Return on average total tangible assets	1.81		2.28		1.92		1.85		1.48		(47)	bps			33	bps

1Effective January 1, 2022, the Company refined its FTP credit methodology for deposits provided by each business segment.

2Includes loans held for sale.

SEGMENT FINANCIAL HIGHLIGHTS - OTHER

(in millions)


	QUARTERLY TRENDS
OTHER1						1Q22 Change
	1Q22	4Q21	3Q21	2Q21	1Q21	4Q21			1Q21
						$	%		$	%
Net interest income2	($126)	($195)	($202)	($192)	($167)	$69	35	%	$41	25	%
Noninterest income	28	27	31	24	21	1	4		7	33
Total revenue	(98)	(168)	(171)	(168)	(146)	70	42		48	33
Noninterest expense	50	30	36	14	41	20	67		9	22
Loss before provision (benefit) for credit losses	(148)	(198)	(207)	(182)	(187)	50	25		39	21
Provision (benefit) for credit losses	(58)	(77)	(83)	(292)	(300)	19	25		242	81
(Loss) income before income tax (benefit) expense	(90)	(121)	(124)	110	113	31	26		(203)	NM
Income tax (benefit) expense	(30)	(36)	(44)	13	15	6	17		(45)	NM
Net (loss) income	($60)	($85)	($80)	$97	$98	$25	29	%	($158)	NM
AVERAGE BALANCES
Total assets	$49,648	$52,650	$54,336	$51,329	$49,548	($3,002)	(6	%)	$100	—	%
Total loans and leases3	735	1,188	1,254	1,327	1,485	(453)	(38)		(750)	(51)
Deposits	5,900	5,887	5,438	5,367	5,495	13	—		405	7
Interest-earning assets	36,913	39,322	41,214	38,882	38,071	(2,409)	(6)		(1,158)	(3)

1Includes assets, liabilities, capital, revenues, provision for credit losses, expenses and income tax expense not attributed to our Consumer or Commercial Banking segments as well as treasury and community development.

2Effective January 1, 2022, the Company refined its FTP credit methodology for deposits provided by each business segment.

3Includes loans held for sale.

CREDIT-RELATED INFORMATION

(in millions, except ratio data)


	AS OF										MARCH 31, 2022 CHANGE
	Mar 31, 2022		Dec 31, 2021		Sept 30, 2021		June 30, 2021		Mar 31, 2021		Dec 31, 2021				March 31, 2021
											$/bps		%		$/bps		%
NONACCRUAL LOANS AND LEASES
Commercial and industrial	$200		$171		$170		$163		$281		$29		17	%	($81)		(29	%)
Commercial real estate	11		11		98		102		100		—		—		(89)		(89)
Leases	1		1		1		1		1		—		—		—		—
Total commercial	212		183		269		266		382		29		16		(170)		(45)
Residential mortgages1	243		201		164		174		237		42		21		6		3
Home equity	239		220		216		234		269		19		9		(30)		(11)
Automobile	52		55		55		62		70		(3)		(5)		(18)		(26)
Education	23		23		23		21		22		—		—		1		5
Other retail	20		20		20		22		28		—		—		(8)		(29)
Total retail	577		519		478		513		626		58		11		(49)		(8)
Nonaccrual loans and leases	789		702		747		779		1,008		87		12		(219)		(22)
Repossessed assets	15		22		21		22		18		(7)		(32)		(3)		(17)
Nonaccrual loans and leases and repossessed assets	$804		$724		$768		$801		$1,026		$80		11	%	($222)		(22	%)
NONACCRUAL LOANS AND LEASES BY PRODUCT2
Commercial	$212		$183		$269		$266		$382		$29		16	%	($170)		(45	%)
Retail	592		541		499		535		644		51		9		(52)		(8)
Total nonaccrual loans and leases	$804		$724		$768		$801		$1,026		$80		11	%	($222)		(22	%)
ASSET QUALITY RATIOS
Allowance for loan and lease losses to loans and leases	1.31	%	1.37	%	1.50	%	1.59	%	1.80	%	(6)	bps			(49)	bps
Allowance for credit losses to loans and leases	1.43		1.51		1.63		1.70		1.94		(8)				(51)
Allowance for loan and lease losses to nonaccrual loans and leases	217.99		250.63		248.33		249.83		217.74		(3,264)				25
Allowance for credit losses to nonaccrual loans and leases	238.03		275.72		268.30		266.98		235.42		(3,769)				261
Nonaccrual loans and leases to loans and leases	0.60		0.55		0.61		0.64		0.82		5				(22)

1Loans fully or partially guaranteed by the FHA, VA and USDA are classified as accruing.

2Nonaccrual loans and leases by product includes repossessed assets.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


	AS OF					MARCH 31, 2022 CHANGE
	Mar 31, 2022	Dec 31, 2021	Sept 30, 2021	June 30, 2021	Mar 31, 2021	Dec 31, 2021			March 31, 2021
						$/bps	%		$/bps	%
LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING
Commercial and industrial	$13	$9	$4	$—	$3	$4	44	%	$10	NM
Commercial real estate	—	—	—	—	9	—	—		(9)	(100)
Leases	5	—	—	1	—	5	100		5	100
Total commercial	18	9	4	1	12	9	100		6	50
Residential mortgages1	792	549	293	270	23	243	44		769	NM






Education	2	1	1	2	2	1	100		—	—


Other retail	14	16	14	7	9	(2)	(13)		5	56
Total retail	808	566	308	279	34	242	43		774	NM
Total loans and leases	$826	$575	$312	$280	$46	$251	44	%	$780	NM

1 90+ days past due and accruing includes $792 million, $544 million, $289 million, $266 million, and $20 million of loans fully or partially guaranteed by the FHA, VA, and USDA for March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, respectively.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS
						1Q22 Change
	1Q22	4Q21	3Q21	2Q21	1Q21	4Q21			1Q21
						$	%		$	%
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS
GROSS CHARGE-OFFS
Commercial and industrial	$14	$14	$12	$32	$80	$—	—	%	($66)	(83)
Commercial real estate	—	—	5	—	53	—	—		(53)	(100)
Leases	—	8	—	13	1	(8)	(100)		(1)	(100)
Total commercial	14	22	17	45	134	(8)	(36)		(120)	(90)
Residential mortgages	2	1	2	1	—	1	100		2	100
Home equity	2	—	3	3	4	2	100		(2)	(50)
Automobile	21	18	14	15	25	3	17		(4)	(16)
Education	20	21	18	18	13	(1)	(5)		7	54
Other retail	42	38	33	43	51	4	11		(9)	(18)
Total retail	87	78	70	80	93	9	12		(6)	(6)
Total gross charge-offs	$101	$100	$87	$125	$227	$1	1	%	($126)	(56	%)
GROSS RECOVERIES
Commercial and industrial	$3	$5	$2	$4	$3	($2)	(40	%)	$—	—	%
Commercial real estate	—	9	—	—	27	(9)	(100)		(27)	(100)
Leases	—	3	1	—	—	(3)	(100)		—	—
Total commercial	3	17	3	4	30	(14)	(82)		(27)	(90)
Residential mortgages	2	2	2	2	1	—	—		1	100
Home equity	11	13	15	13	11	(2)	(15)		—	—
Automobile	15	13	12	17	14	2	15		1	7
Education	4	4	5	5	6	—	—		(2)	(33)
Other retail	7	6	6	6	7	1	17		—	—
Total retail	39	38	40	43	39	1	3		—	—
Total gross recoveries	$42	$55	$43	$47	$69	($13)	(24	%)	($27)	(39	%)
NET CHARGE-OFFS (RECOVERIES)
Commercial and industrial	$11	$9	$10	$28	$77	$2	22	%	($66)	(86)
Commercial real estate	—	(9)	5	—	26	9	100		(26)	(100)
Leases	—	5	(1)	13	1	(5)	(100)		(1)	(100)
Total commercial	11	5	14	41	104	6	120		(93)	(89)
Residential mortgages	—	(1)	—	(1)	(1)	1	100		1	100
Home equity	(9)	(13)	(12)	(10)	(7)	4	31		(2)	(29)
Automobile	6	5	2	(2)	11	1	20		(5)	(45)
Education	16	17	13	13	7	(1)	(6)		9	129
Other retail	35	32	27	37	44	3	9		(9)	(20)
Total retail	48	40	30	37	54	8	20		(6)	(11)
Total net charge-offs	$59	$45	$44	$78	$158	$14	31	%	($99)	(63	%)

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except rates)


	QUARTERLY TRENDS
											1Q22 Change
	1Q22		4Q21		3Q21		2Q21		1Q21		4Q21				1Q21
											$/bps		%		$/bps		%
ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES
Commercial and industrial	0.10	%	0.08	%	0.09	%	0.25	%	0.70	%	2	bps			(60)	bps
Commercial real estate	—		(0.24)		0.12		—		0.73		24				(73)
Leases	0.10		1.22		(0.22)		2.97		0.26		(112)				(16)
Total commercial	0.08		0.03		0.09		0.27		0.69		5				(61)
Residential mortgages	—		(0.01)		—		(0.03)		(0.01)		1				1
Home equity	(0.32)		(0.41)		(0.42)		(0.33)		(0.25)		9				(7)
Automobile	0.18		0.13		0.06		(0.04)		0.35		5				(17)
Education	0.49		0.51		0.41		0.40		0.24		(2)				25
Other retail	2.61		2.30		1.99		2.63		3.00		31				(39)
Total retail	0.28		0.24		0.19		0.24		0.35		4				(7)
Total loans and leases	0.19	%	0.14	%	0.14	%	0.25	%	0.52	%	5	bps			(33)	bps
Memo: Average loans
Commercial and industrial	$44,947		$43,070		$42,330		$44,388		$44,287		$1,877		4	%	$660		1	%
Commercial real estate	14,066		14,261		14,656		14,473		14,675		(195)		(1)		(609)		(4)
Leases	1,560		1,569		1,695		1,792		1,915		(9)		(1)		(355)		(19)
Total commercial	60,573		58,900		58,681		60,653		60,877		1,673		3		(304)		—
Residential mortgages	23,461		22,047		20,834		20,242		19,388		1,414		6		4,073		21
Home equity	12,124		11,948		11,829		11,825		12,001		176		1		123		1
Automobile	14,534		13,976		13,136		12,526		12,229		558		4		2,305		19
Education	13,034		12,885		12,707		12,632		12,436		149		1		598		5
Other retail	5,428		5,453		5,454		5,612		5,916		(25)		—		(488)		(8)
Total retail	68,581		66,309		63,960		62,837		61,970		2,272		3		6,611		11
Total loans and leases	$129,154		$125,209		$122,641		$123,490		$122,847		$3,945		3	%	$6,307		5	%

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS
						1Q22 Change
	1Q22	4Q21	3Q21	2Q21	1Q21	4Q21			1Q21
						$	%		$	%
SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES
Allowance for loan and lease losses - beginning	$1,758	$1,855	$1,947	$2,194	$2,443	($97)	(5	%)	($685)	(28	%)





Charge-offs:
Commercial	14	22	17	45	134	(8)	(36)		(120)	(90)
Retail	87	78	70	80	93	9	12		(6)	(6)
Total charge-offs	101	100	87	125	227	1	1		(126)	(56)
Recoveries:
Commercial	3	17	3	4	30	(14)	(82)		(27)	(90)
Retail	39	38	40	43	39	1	3		—	—
Total recoveries	42	55	43	47	69	(13)	(24)		(27)	(39)
Net charge-offs	59	45	44	78	158	14	31		(99)	(63)
Provision (benefit) for loan and lease losses:
Commercial	(32)	(41)	(72)	(152)	17	9	22		(49)	NM
Retail	53	(11)	24	(17)	(108)	64	NM		161	NM
Total provision (benefit) for loan and lease losses	21	(52)	(48)	(169)	(91)	73	NM		112	NM

Allowance for loan and lease losses - ending	$1,720	$1,758	$1,855	$1,947	$2,194	($38)	(2	%)	($474)	(22	%)

Allowance for unfunded lending commitments - beginning	$176	$149	$134	$178	$227	$27	18	%	($51)	(22	%)

Provision (benefit) for unfunded lending commitments	(18)	27	15	(44)	(49)	(45)	NM		31	63
Allowance for unfunded lending commitments - ending	$158	$176	$149	$134	$178	($18)	(10	%)	($20)	(11)
Total allowance for credit losses - ending	$1,878	$1,934	$2,004	$2,081	$2,372	($56)	(3	%)	($494)	(21	%)

Memo: Total allowance for credit losses by product
Commercial	$925	$974	$997	$1,074	$1,311	($49)	(5	%)	($386)	(29	%)
Retail	953	960	1,007	1,007	1,061	(7)	(1)		(108)	(10)
Total allowance for credit losses	$1,878	$1,934	$2,004	$2,081	$2,372	($56)	(3	%)	($494)	(21	%)

CAPITAL AND RATIOS

(in millions, except ratio data)


	AS OF
											MARCH 31, 2022 CHANGE
	Mar 31, 2022		Dec 31, 2021		Sept 30, 2021		June 30, 2021		Mar 31, 2021		Dec 31, 2021			March 31, 2021
											$	%		$	%
CAPITAL RATIOS AND COMPONENTS (PRELIMINARY)
CET1 capital	$15,643		$15,656		$15,584		$15,266		$14,867		($13)	—	%	$776	5	%
Tier 1 capital	17,657		17,670		17,598		17,280		16,832		(13)	—		825	5
Total capital	20,301		20,244		20,295		20,111		19,879		57	—		422	2
Risk-weighted assets	161,859		158,831		151,796		148,563		147,817		3,028	2		14,042	9
Adjusted average assets1	183,089		181,800		180,528		178,929		176,890		1,289	1		6,199	4
CET1 capital ratio	9.7	%	9.9	%	10.3	%	10.3	%	10.1	%
Tier 1 capital ratio	10.9		11.1		11.6		11.6		11.4
Total capital ratio	12.5		12.7		13.4		13.5		13.4
Tier 1 leverage ratio	9.6		9.7		9.7		9.7		9.5
TANGIBLE COMMON EQUITY (PERIOD-END)
Common stockholders' equity	$20,060		$21,406		$21,409		$21,185		$20,688		($1,346)	(6	%)	($628)	(3	%)
Less: Goodwill	7,232		7,116		7,065		7,050		7,050		116	2		182	3
Less: Other intangible assets	115		64		51		52		54		51	80		61	113
Add: Deferred tax liabilities2	387		383		384		383		380		4	1		7	2
Total tangible common equity	$13,100		$14,609		$14,677		$14,466		$13,964		($1,509)	(10	%)	($864)	(6	%)
TANGIBLE COMMON EQUITY (AVERAGE)
Common stockholders' equity	$20,981		$21,320		$21,326		$20,833		$20,611		($339)	(2	%)	$370	2	%
Less: Goodwill	7,156		7,092		7,055		7,050		7,050		64	1		106	2
Less: Other intangible assets	80		56		52		53		57		24	43		23	40
Add: Deferred tax liabilities2	383		383		383		381		379		—	—		4	1
Total tangible common equity	$14,128		$14,555		$14,602		$14,111		$13,883		($427)	(3	%)	$245	2	%
INTANGIBLE ASSETS (PERIOD-END)
Goodwill	$7,232		$7,116		$7,065		$7,050		$7,050		$116	2	%	$182	3	%
Other intangible assets	115		64		51		52		54		51	80		61	113
Total intangible assets	$7,347		$7,180		$7,116		$7,102		$7,104		$167	2	%	$243	3	%

1Adjusted average assets include quarterly average assets, less deductions for disallowed goodwill and other intangible assets, net of deferred tax liabilities related to tax deductible goodwill, and the accumulated other comprehensive
income impact related to the adoption of post-retirement benefit plan guidance under GAAP.

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

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

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

Non-GAAP Financial Measures

This document contains non-GAAP financial measures denoted as Underlying. Underlying results for any given reporting period exclude certain items that may occur in that period which management does not consider indicative of the Company’s on-going financial performance. We believe these non-GAAP financial measures provide useful information to investors because they are used by our management to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe our Underlying results in any given reporting period reflect our on-going financial performance, increase comparability of period-to-period results, and are useful to consider in addition to our GAAP financial results. The following tables present reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures.

Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to similar measures used by such companies. We caution investors not to place undue reliance on such non-GAAP financial measures, but to consider them with the most directly comparable GAAP measures. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for our results reported under GAAP.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED

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


		QUARTERLY TRENDS
							1Q22 Change
		1Q22	4Q21	3Q21	2Q21	1Q21	4Q21			1Q21
							$	%		$	%




Total revenue, Underlying:
Total revenue (GAAP)	A	$1,645	$1,720	$1,659	$1,609	$1,659	($75)	(4	%)	($14)	(1	%)
Less: Notable items		—	—	—	—	—	—	—		—	—
Total revenue, Underlying (non-GAAP)	B	$1,645	$1,720	$1,659	$1,609	$1,659	($75)	(4	%)	($14)	(1	%)
Noninterest expense, Underlying:
Noninterest expense (GAAP)	C	$1,106	$1,061	$1,011	$991	$1,018	$45	4	%	$88	9	%
Less: Notable items		48	51	23	11	20	(3)	(6)		28	140
Noninterest expense, Underlying (non-GAAP)	D	$1,058	$1,010	$988	$980	$998	$48	5	%	$60	6	%
Pre-provision profit:
Total revenue (GAAP)	A	$1,645	$1,720	$1,659	$1,609	$1,659	($75)	(4	%)	($14)	(1	%)
Less: Noninterest expense (GAAP)	C	1,106	1,061	1,011	991	1,018	45	4		88	9
Pre-provision profit (GAAP)		$539	$659	$648	$618	$641	($120)	(18	%)	($102)	(16	%)
Pre-provision profit, Underlying:
Total revenue, Underlying (non-GAAP)	B	$1,645	$1,720	$1,659	$1,609	$1,659	($75)	(4	%)	($14)	(1	%)
Less: Noninterest expense, Underlying (non-GAAP)	D	1,058	1,010	988	980	998	48	5		60	6
Pre-provision profit, Underlying (non-GAAP)		$587	$710	$671	$629	$661	($123)	(17	%)	($74)	(11	%)
Provision (benefit) for credit losses, Underlying:
Provision (benefit) for credit losses (GAAP)		$3	($25)	($33)	($213)	($140)	$28	NM		$143	NM
Less: Notable items		24	—	—	—	—	24	100		24	100
Provision (benefit) for credit losses, Underlying (non-GAAP)		($21)	($25)	($33)	($213)	($140)	$4	16	%	$119	85	%
Income before income tax expense, Underlying:
Income before income tax expense (GAAP)	E	$536	$684	$681	$831	$781	($148)	(22	%)	($245)	(31	%)
Less: Expense before income tax benefit related to notable items		(72)	(51)	(23)	(11)	(20)	(21)	(41)		(52)	NM
Income before income tax expense, Underlying (non-GAAP)	F	$608	$735	$704	$842	$801	($127)	(17	%)	($193)	(24	%)
Income tax expense, Underlying:
Income tax expense (GAAP)	G	$116	$154	$151	$183	$170	($38)	(25	%)	($54)	(32	%)
Less: Income tax benefit related to notable items		(16)	(12)	(7)	(3)	(5)	(4)	(33)		(11)	(220)
Income tax expense, Underlying (non-GAAP)	H	$132	$166	$158	$186	$175	($34)	(20	%)	($43)	(25	%)
Net income, Underlying:
Net income (GAAP)	I	$420	$530	$530	$648	$611	($110)	(21	%)	($191)	(31	%)
Add: Notable items, net of income tax benefit		56	39	16	8	15	17	44		41	NM
Net income, Underlying (non-GAAP)	J	$476	$569	$546	$656	$626	($93)	(16	%)	($150)	(24	%)
Net income available to common stockholders, Underlying:
Net income available to common stockholders (GAAP)	K	$396	$498	$504	$616	$588	($102)	(20	%)	($192)	(33	%)
Add: Notable items, net of income tax benefit		56	39	16	8	15	17	44		41	NM
Net income available to common stockholders, Underlying (non-GAAP)	L	$452	$537	$520	$624	$603	($85)	(16	%)	($151)	(25	%)

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED

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


		QUARTERLY TRENDS
												1Q22 Change
		1Q22		4Q21		3Q21		2Q21		1Q21		4Q21				1Q21
												$/bps		%		$/bps		%
Operating leverage:
Total revenue (GAAP)	A	$1,645		$1,720		$1,659		$1,609		$1,659		($75)		(4.33	%)	($14)		(0.85	%)
Less: Noninterest expense (GAAP)	C	1,106		1,061		1,011		991		1,018		45		4.28		88		8.65
Operating leverage														(8.61	%)			(9.50	%)
Operating leverage, Underlying:
Total revenue, Underlying (non-GAAP)	B	$1,645		$1,720		$1,659		$1,609		$1,659		($75)		(4.33	%)	($14)		(0.85	%)
Less: Noninterest expense, Underlying (non-GAAP)	D	1,058		1,010		988		980		998		48		4.74		60		5.89
Operating leverage, Underlying (non-GAAP)														(9.07	%)			(6.74	%)
Efficiency ratio and efficiency ratio, Underlying:
Efficiency ratio	C/A	67.23	%	61.68	%	60.92	%	61.63	%	61.35	%	555	bps			588	bps
Efficiency ratio, Underlying (non-GAAP)	D/B	64.28		58.71		59.55		60.92		60.19		557	bps			409	bps



Effective income tax rate and effective income tax rate, Underlying:
Effective income tax rate	G/E	21.70	%	22.40	%	22.35	%	21.96	%	21.76	%	(70)	bps			(6)	bps
Effective income tax rate, Underlying (non-GAAP)	H/F	21.70		22.61		22.45		22.01		21.85		(91)	bps			(15)	bps
Return on average common equity and return on average common equity, Underlying:
Average common equity (GAAP)	M	$20,981		$21,320		$21,326		$20,833		$20,611		($339)		(2	%)	$370		2	%
Return on average common equity	K/M	7.65	%	9.26	%	9.39	%	11.85	%	11.57	%	(161)	bps			(392)	bps
Return on average common equity, Underlying (non-GAAP)	L/M	8.75		9.97		9.70		12.02		11.85		(122)	bps			(310)	bps
Return on average tangible common equity and return on average tangible common equity, Underlying:
Average common equity (GAAP)	M	$20,981		$21,320		$21,326		$20,833		$20,611		($339)		(2	%)	$370		2	%
Less: Average goodwill (GAAP)		7,156		7,092		7,055		7,050		7,050		64		1		106		2
Less: Average other intangibles (GAAP)		80		56		52		53		57		24		43		23		40
Add: Average deferred tax liabilities related to goodwill (GAAP)		383		383		383		381		379		—		—		4		1
Average tangible common equity	N	$14,128		$14,555		$14,602		$14,111		$13,883		($427)		(3	%)	$245		2	%
Return on average tangible common equity	K/N	11.36	%	13.57	%	13.71	%	17.50	%	17.17	%	(221)	bps			(581)	bps
Return on average tangible common equity, Underlying (non-GAAP)	L/N	12.99		14.61		14.17		17.74		17.59		(162)	bps			(460)	bps
Return on average total assets and return on average total assets, Underlying:
Average total assets (GAAP)	O	$188,317		$187,228		$186,108		$184,456		$182,569		$1,089		1	%	$5,748		3	%
Return on average total assets	I/O	0.90	%	1.12	%	1.13	%	1.41	%	1.36	%	(22)	bps			(46)	bps
Return on average total assets, Underlying (non-GAAP)	J/O	1.03		1.20		1.16		1.43		1.39		(17)	bps			(36)	bps

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED

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


		QUARTERLY TRENDS
												1Q22 Change
		1Q22		4Q21		3Q21		2Q21		1Q21		4Q21				1Q21
												$/bps		%		$/bps		%
Return on average total tangible assets and return on average total tangible assets, Underlying:
Average total assets (GAAP)	P	$188,317		$187,228		$186,108		$184,456		$182,569		$1,089		1	%	$5,748		3	%
Less: Average goodwill (GAAP)		7,156		7,092		7,055		7,050		7,050		64		1		106		2
Less: Average other intangibles (GAAP)		80		56		52		53		57		24		43		23		40
Add: Average deferred tax liabilities related to goodwill (GAAP)		383		383		383		381		379		—		—		4		1
Average tangible assets	Q	$181,464		$180,463		$179,384		$177,734		$175,841		$1,001		1	%	$5,623		3	%
Return on average total tangible assets	I/Q	0.94	%	1.17	%	1.17	%	1.46	%	1.41	%	(23)	bps			(47)	bps
Return on average total tangible assets, Underlying (non-GAAP)	J/Q	1.06		1.25		1.21		1.48		1.44		(19)	bps			(38)	bps
Tangible book value per common share:
Common shares - at period-end (GAAP)	R	423,031,985		422,137,197		426,199,576		426,083,143		425,930,159		894,788		—	%	(2,898,174)		(1	%)
Common stockholders' equity (GAAP)		$20,060		$21,406		$21,409		$21,185		$20,688		($1,346)		(6)		($628)		(3)
Less: Goodwill (GAAP)		7,232		7,116		7,065		7,050		7,050		116		2		182		3
Less: Other intangible assets (GAAP)		115		64		51		52		54		51		80		61		113
Add: Deferred tax liabilities related to goodwill (GAAP)		387		383		384		383		380		4		1		7		2
Tangible common equity	S	$13,100		$14,609		$14,677		$14,466		$13,964		($1,509)		(10	%)	($864)		(6	%)
Tangible book value per common share	S/R	$30.97		$34.61		$34.44		$33.95		$32.79		($3.64)		(11	%)	($1.82)		(6	%)
Net income per average common share - basic and diluted and net income per average common share - basic and diluted, Underlying:
Average common shares outstanding - basic (GAAP)	T	422,401,747		424,697,880		426,086,717		425,948,706		425,953,716		(2,296,133)		(1	%)	(3,551,969)		(1	%)
Average common shares outstanding - diluted (GAAP)	U	424,670,871		426,868,106		427,840,964		427,561,572		427,880,530		(2,197,235)		(1)		(3,209,659)		(1)
Net income per average common share - basic (GAAP)	K/T	$0.94		$1.17		$1.18		$1.45		$1.38		($0.23)		(20)		($0.44)		(32)
Net income per average common share - diluted (GAAP)	K/U	0.93		1.17		1.18		1.44		1.37		(0.24)		(21)		(0.44)		(32)
Net income per average common share - basic, Underlying (non-GAAP)	L/T	1.07		1.26		1.22		1.47		1.41		(0.19)		(15)		(0.34)		(24)
Net income per average common share - diluted, Underlying (non-GAAP)	L/U	1.07		1.26		1.22		1.46		1.41		(0.19)		(15)		(0.34)		(24)
Dividend payout ratio and dividend payout ratio, Underlying:
Cash dividends declared and paid per common share	V	$0.39		$0.39		$0.39		$0.39		$0.39		$—		—	%	$—		—	%
Dividend payout ratio	V/(K/T)	41	%	33	%	33	%	27	%	28	%	800 bps				1,300 bps
Dividend payout ratio, Underlying (non-GAAP)	V/(L/T)	36		31		32		27		28		500 bps				800 bps

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED

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


	QUARTERLY TRENDS
						1Q22 Change
	1Q22	4Q21	3Q21	2Q21	1Q21	4Q21			1Q21
						$	%		$	%








Salaries and employee benefits, Underlying:
Salaries and employee benefits (GAAP)	$594	$551	$509	$524	$548	$43	8	%	$46	8	%
Less: Notable items	6	5	(13)	—	—	1	20		6	100
Salaries and employee benefits, Underlying (non-GAAP)	$588	$546	$522	$524	$548	$42	8	%	$40	7	%
Equipment and software, Underlying:
Equipment and software (GAAP)	$150	$146	$157	$155	$152	$4	3	%	($2)	(1	%)
Less: Notable items	2	2	7	4	4	—	—		(2)	(50)
Equipment and software, Underlying (non-GAAP)	$148	$144	$150	$151	$148	$4	3	%	$—	—	%
Outside services, Underlying:
Outside services (GAAP)	$169	$175	$144	$137	$139	($6)	(3	%)	$30	22	%
Less: Notable items	35	37	12	4	7	(2)	(5)		28	NM
Outside services, Underlying (non-GAAP)	$134	$138	$132	$133	$132	($4)	(3	%)	$2	2	%
Occupancy, Underlying:
Occupancy (GAAP)	$83	$86	$77	$82	$88	($3)	(3	%)	($5)	(6	%)
Less: Notable items	—	5	1	3	9	(5)	(100)		(9)	(100)
Occupancy, Underlying (non-GAAP)	$83	$81	$76	$79	$79	$2	2	%	$4	5	%

Other operating expense, Underlying:
Other operating expense (GAAP)	$110	$103	$124	$93	$91	$7	7	%	$19	21	%
Less: Notable items	5	2	16	—	—	3	150		5	NM
Other operating expense, Underlying (non-GAAP)	$105	$101	$108	$93	$91	$4	4	%	$14	15	%

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS

(in millions, except ratio data)


		FIRST QUARTER 2022							FOURTH QUARTER 2021							THIRD QUARTER 2021

		Consumer Banking		Commercial Banking		Other	Consolidated		Consumer Banking		Commercial Banking		Other	Consolidated		Consumer Banking		Commercial Banking		Other	Consolidated
Net income (loss) available to common stockholders:
Net income (loss)	A	$209		$271		($60)	$420		$279		$336		($85)	$530		$336		$274		($80)	$530
Less: Preferred stock dividends		—		—		24	24		—		—		32	32		—		—		26	26
Net income (loss) available to common stockholders	B	$209		$271		($84)	$396		$279		$336		($117)	$498		$336		$274		($106)	$504
Return on average total tangible assets:
Average total assets (GAAP)		$77,551		$61,118		$49,648	$188,317		$76,077		$58,501		$52,650	$187,228		$75,070		$56,702		$54,336	$186,108
Less: Average goodwill (GAAP)		160		120		6,876	7,156		122		94		6,876	7,092		122		57		6,876	7,055
Average other intangibles (GAAP)		51		18		11	80		32		11		13	56		34		5		13	52
Add: Average deferred tax liabilities related to goodwill (GAAP)		5		1		377	383		4		1		378	383		4		2		377	383
Average tangible assets	C	$77,345		$60,981		$43,138	$181,464		$75,927		$58,397		$46,139	$180,463		$74,918		$56,642		$47,824	$179,384
Return on average total tangible assets	A/C	1.10	%	1.81	%	NM	0.94	%	1.46	%	2.28	%	NM	1.17	%	1.78	%	1.92	%	NM	1.17	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$784		$272		$50	$1,106		$737		$294		$30	$1,061		$749		$226		$36	$1,011
Net interest income (GAAP)		857		416		(126)	1,147		883		438		(195)	1,126		919		428		(202)	1,145
Noninterest income (GAAP)		257		213		28	498		274		293		27	594		315		168		31	514
Total revenue (GAAP)	E	$1,114		$629		($98)	$1,645		$1,157		$731		($168)	$1,720		$1,234		$596		($171)	$1,659
Efficiency ratio	D/E	70.38	%	43.32	%	NM	67.23	%	63.68	%	40.16	%	NM	61.68	%	60.73	%	38.02	%	NM	60.92	%


		SECOND QUARTER 2021							FIRST QUARTER 2021

		Consumer Banking		Commercial Banking		Other	Consolidated		Consumer Banking		Commercial Banking		Other	Consolidated
Net income (loss) available to common stockholders:
Net income	A	$286		$265		$97	$648		$302		$211		$98	$611
Less: Preferred stock dividends		—		—		32	32		—		—		23	23
Net income available to common stockholders	B	$286		$265		$65	$616		$302		$211		$75	$588
Return on average total tangible assets:
Average total assets (GAAP)		$75,600		$57,527		$51,329	$184,456		$75,283		$57,738		$49,548	$182,569
Less: Average goodwill (GAAP)		122		52		6,876	7,050		122		52		6,876	7,050
Average other intangibles (GAAP)		35		4		14	53		37		5		15	57
Add: Average deferred tax liabilities related to goodwill (GAAP)		4		1		376	381		3		1		375	379
Average tangible assets	C	$75,447		$57,472		$44,815	$177,734		$75,127		$57,682		$43,032	$175,841
Return on average total tangible assets	A/C	1.52	%	1.85	%	NM	1.46	%	1.63	%	1.48	%	NM	1.41	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$751		$226		$14	$991		$750		$227		$41	$1,018
Net interest income (GAAP)		897		419		(192)	1,124		863		421		(167)	1,117
Noninterest income (GAAP)		283		178		24	485		351		170		21	542
Total revenue (GAAP)	E	$1,180		$597		($168)	$1,609		$1,214		$591		($146)	$1,659
Efficiency ratio	D/E	63.62	%	37.86	%	NM	61.63	%	61.79	%	38.33	%	NM	61.35	%