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Published: 2022-01-19 06:26:38 ET

EX-99.3 4 q421financialsupplement.htm EX-99.3 Document

Financial Supplement

Fourth Quarter and Full Year 2021


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						10

Segment Financial Highlights						11

Credit-Related Information:
Nonaccrual loans and leases						14
Loans and Leases 90 Days or More Past Due and Accruing						15
Charge-offs, Recoveries, and Related Ratios						16
Summary of Changes in the Components of the Allowance for Credit Losses						18

Capital and Ratios						19

Non-GAAP Financial Measures and Reconciliations						20
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																		FULL YEAR
											4Q21 Change												2021 Change
	4Q21		3Q21		2Q21		1Q21		4Q20		3Q21				4Q20				2021		2020		2020
											$/bps		%		$/bps		%						$/bps		%
SELECTED OPERATING DATA
Total revenue	$1,720		$1,659		$1,609		$1,659		$1,707		$61		4	%	$13		1	%	$6,647		$6,905		($258)		(4	%)
Noninterest expense	1,061		1,011		991		1,018		1,012		50		5		49		5		4,081		3,991		90		2
Profit before provision for credit losses	659		648		618		641		695		11		2		(36)		(5)		2,566		2,914		(348)		(12)
Provision for credit losses	(25)		(33)		(213)		(140)		124		8		24		(149)		NM		(411)		1,616		(2,027)		NM
NET INCOME	530		530		648		611		456		—		—		74		16		2,319		1,057		1,262		119
Net income, Underlying1	569		546		656		626		480		23		4		89		19		2,397		1,140		1,257		110
Net income available to common stockholders	498		504		616		588		424		(6)		(1)		74		17		2,206		950		1,256		132
Net income available to common stockholders, Underlying1	537		520		624		603		448		17		3		89		20		2,284		1,033		1,251		121
PER COMMON SHARE DATA
Basic earnings	$1.17		$1.18		$1.45		$1.38		$0.99		($0.01)		(1	%)	$0.18		18	%	$5.18		$2.22		$2.96		133	%
Diluted earnings	1.17		1.18		1.44		1.37		0.99		(0.01)		(1)		0.18		18		5.16		2.22		2.94		132
Basic earnings, Underlying1	1.26		1.22		1.47		1.41		1.05		0.04		3		0.21		20		5.37		2.42		2.95		122
Diluted earnings, Underlying1	1.26		1.22		1.46		1.41		1.04		0.04		3		0.22		21		5.34		2.41		2.93		122
Cash dividends declared and paid per common share	0.39		0.39		0.39		0.39		0.39		—		—		—		—		1.56		1.56		—		—
Book value per common share	50.71		50.23		49.72		48.57		48.47		0.48		1		2.24		5		50.71		48.47		2.24		5
Tangible book value per common share	34.61		34.44		33.95		32.79		32.72		0.17		—		1.89		6		34.61		32.72		1.89		6
Dividend payout ratio	33	%	33	%	27	%	28	%	39	%	—	bps			(600)	bps			30	%	70	%	(4,000)	bps
Dividend payout ratio, Underlying1	31		32		27		28		37		(100)	bps			(600)	bps			29		65		(3,600)	bps
COMMON SHARES OUTSTANDING
Average: Basic	424,697,880		426,086,717		425,948,706		425,953,715.598333		427,074,822		(1,388,837)		—	%	(2,376,942)		(1	%)	425,669,451		427,062,537		(1,393,086)		—	%
Diluted	426,868,106		427,840,964		427,561,572		427,880,529.598333		428,881,252		(972,858)		—		(2,013,146)		—		427,435,818		428,157,780		(721,962)		—
Common shares at period-end	422,137,197		426,199,576		426,083,143		425,930,159		427,209,831		(4,062,379)		(1)		(5,072,634)		(1)		422,137,197		427,209,831		(5,072,634)		(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																FULL YEAR
											4Q21 Change										2021 Change
	4Q21		3Q21		2Q21		1Q21		4Q20		3Q21			4Q20			2021		2020		2020
											$/bps		%	$/bps		%					$/bps		%
FINANCIAL RATIOS
Net interest margin	2.66	%	2.72	%	2.71	%	2.75	%	2.75	%	(6)	bps		(9)	bps		2.71	%	2.88	%	(17)	bps
Net interest margin, FTE1	2.66		2.72		2.72		2.76		2.75		(6)			(9)			2.72		2.89		(17)
Return on average common equity	9.26		9.39		11.85		11.57		8.20		(13)			106			10.49		4.65		584
Return on average common equity, Underlying2	9.97		9.70		12.02		11.85		8.66		27			131			10.86		5.05		581
Return on average tangible common equity	13.57		13.71		17.50		17.17		12.20		(14)			137			15.44		6.93		851
Return on average tangible common equity, Underlying2	14.61		14.17		17.74		17.59		12.89		44			172			15.98		7.53		845
Return on average total assets	1.12		1.13		1.41		1.36		1.00		(1)			12			1.25		0.60		65
Return on average total assets, Underlying2	1.20		1.16		1.43		1.39		1.05		4			15			1.30		0.65		65
Return on average total tangible assets	1.17		1.17		1.46		1.41		1.04		—			13			1.30		0.62		68
Return on average total tangible assets, Underlying2	1.25		1.21		1.48		1.44		1.10		4			15			1.34		0.67		67
Effective income tax rate	22.40		22.35		21.96		21.76		20.16		5			224			22.10		18.54		356
Effective income tax rate, Underlying2	22.61		22.45		22.01		21.85		21.70		16			91			22.21		19.92		229
Efficiency ratio	61.68		60.92		61.63		61.35		59.28		76			240			61.40		57.80		360
Efficiency ratio, Underlying2	58.71		59.55		60.92		60.19		56.83		(84)			188			59.82		55.99		383
Noninterest income as a % of total revenue	35	%	31	%	30	%	33	%	34	%	400	bps		100	bps		32	%	34	%	(200)	bps
CAPITAL RATIOS - PERIOD-END (PRELIMINARY)
CET1 capital ratio	9.9	%	10.3	%	10.3	%	10.1	%	10.0	%
Tier 1 capital ratio	11.1		11.6		11.6		11.4		11.3
Total capital ratio	12.7		13.4		13.5		13.4		13.4
Tier 1 leverage ratio	9.7		9.7		9.7		9.5		9.4
Tangible common equity ratio	8.1		8.1		8.1		7.7		7.9
SELECTED BALANCE SHEET DATA
Loan-to-deposit ratio (period-end balances)	83.03	%	81.01	%	81.38	%	80.74	%	83.64	%	202	bps		(61)	bps		83.03	%	83.64	%	(61)	bps
Loan-to-deposit ratio (average balances)	81.83		80.75		82.14		83.77		84.99		108	bps		(316)	bps		82.10		89.77		(767)	bps
Full-time equivalent colleagues	17,463		17,366		17,472		17,405		17,584		97		1	(121)		(1)	17,463		17,584		(121)		(1)

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											FULL YEAR
						4Q21 Change								2021 Change
	4Q21	3Q21	2Q21	1Q21	4Q20	3Q21			4Q20			2021	2020	2020
						$	%		$	%				$	%
INTEREST INCOME
Interest and fees on loans and leases	$1,056	$1,078	$1,058	$1,061	$1,105	($22)	(2	%)	($49)	(4	%)	$4,253	$4,719	($466)	(10	%)
Interest and fees on loans held for sale	19	21	24	18	19	(2)	(10)		—	—		82	75	7	9
Interest and fees on other loans held for sale	4	1	2	6	1	3	NM		3	NM		13	33	(20)	(61)
Investment securities	119	116	124	128	121	3	3		(2)	(2)		487	519	(32)	(6)
Interest-bearing deposits in banks	4	6	3	3	3	(2)	(33)		1	33		16	11	5	45
Total interest income	1,202	1,222	1,211	1,216	1,249	(20)	(2)		(47)	(4)		4,851	5,357	(506)	(9)
INTEREST EXPENSE
Deposits	33	35	42	50	69	(2)	(6)		(36)	(52)		160	509	(349)	(69)
Short-term borrowed funds	1	—	—	—	1	1	100		—	—		1	2	(1)	(50)
Long-term borrowed funds	42	42	45	49	50	—	—		(8)	(16)		178	260	(82)	(32)
Total interest expense	76	77	87	99	120	(1)	(1)		(44)	(37)		339	771	(432)	(56)
Net interest income	1,126	1,145	1,124	1,117	1,129	(19)	(2)		(3)	—		4,512	4,586	(74)	(2)
NONINTEREST INCOME
Capital markets fees	184	72	91	81	88	112	156		96	109		428	250	178	71
Service charges and fees	100	110	100	99	104	(10)	(9)		(4)	(4)		409	403	6	1
Mortgage banking fees	76	108	85	165	193	(32)	(30)		(117)	(61)		434	915	(481)	(53)
Card fees	65	66	64	55	56	(1)	(2)		9	16		250	217	33	15
Trust and investment services fees	60	61	60	58	52	(1)	(2)		8	15		239	203	36	18
Letter of credit and loan fees	41	39	38	38	38	2	5		3	8		156	140	16	11
Foreign exchange and interest rate products	35	29	28	28	35	6	21		—	—		120	120	—	—
Securities gains, net	1	3	3	3	—	(2)	(67)		1	100		10	4	6	150
Other income	32	26	16	15	12	6	23		20	167		89	67	22	33
Total noninterest income	594	514	485	542	578	80	16		16	3		2,135	2,319	(184)	(8)
TOTAL REVENUE	1,720	1,659	1,609	1,659	1,707	61	4		13	1		6,647	6,905	(258)	(4)
Provision for credit losses	(25)	(33)	(213)	(140)	124	8	24		(149)	NM		(411)	1,616	(2,027)	NM
NONINTEREST EXPENSE
Salaries and employee benefits	551	509	524	548	537	42	8		14	3		2,132	2,123	9	—
Equipment and software	146	157	155	152	141	(11)	(7)		5	4		610	565	45	8
Outside services	175	144	137	139	148	31	22		27	18		595	553	42	8
Occupancy	86	77	82	88	84	9	12		2	2		333	331	2	1
Other operating expense	103	124	93	91	102	(21)	(17)		1	1		411	419	(8)	(2)
Total noninterest expense	1,061	1,011	991	1,018	1,012	50	5		49	5		4,081	3,991	90	2
Income before income tax expense	684	681	831	781	571	3	—		113	20		2,977	1,298	1,679	129
Income tax expense	154	151	183	170	115	3	2		39	34		658	241	417	173
Net income	$530	$530	$648	$611	$456	$—	—	%	$74	16	%	$2,319	$1,057	$1,262	119	%
Net income, Underlying1	$569	$546	$656	$626	$480	$23	4	%	$89	19	%	$2,397	$1,140	$1,257	110	%
Net income available to common stockholders	$498	$504	$616	$588	$424	($6)	(1	%)	$74	17	%	$2,206	$950	$1,256	132	%
Net income available to common stockholders, Underlying1	$537	$520	$624	$603	$448	$17	3	%	$89	20	%	$2,284	$1,033	$1,251	121	%

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					DECEMBER 31, 2021 CHANGE
	Dec 31, 2021	Sept 30, 2021	June 30, 2021	Mar 31, 2021	Dec 31, 2020	September 30, 2021			December 31, 2020
						$	%		$	%
ASSETS
Cash and due from banks	$1,155	$1,145	$1,035	$1,117	$1,037	$10	1	%	$118	11	%
Interest-bearing cash and due from banks	8,003	12,571	11,606	13,543	11,696	(4,568)	(36)		(3,693)	(32)
Interest-bearing deposits in banks	316	289	401	308	306	27	9		10	3
Debt securities available for sale, at fair value	26,067	24,911	24,583	24,467	22,942	1,156	5		3,125	14
Debt securities held to maturity	2,242	2,492	2,711	2,995	3,235	(250)	(10)		(993)	(31)
Loans held for sale, at fair value	2,733	3,177	3,616	4,304	3,564	(444)	(14)		(831)	(23)
Other loans held for sale	735	93	82	75	439	642	NM		296	67
Loans and leases	128,163	123,318	122,581	122,195	123,090	4,845	4		5,073	4
Less: Allowance for loan and lease losses	(1,758)	(1,855)	(1,947)	(2,194)	(2,443)	97	(5)		685	(28)
Net loans and leases	126,405	121,463	120,634	120,001	120,647	4,942	4		5,758	5
Derivative assets	1,216	1,769	1,655	1,298	1,915	(553)	(31)		(699)	(37)
Premises and equipment	768	732	735	743	759	36	5		9	1
Bank-owned life insurance	2,843	2,428	2,268	2,135	1,756	415	17		1,087	62
Goodwill	7,116	7,065	7,050	7,050	7,050	51	1		66	1
Other assets	8,810	8,872	8,728	9,181	8,003	(62)	(1)		807	10
TOTAL ASSETS	$188,409	$187,007	$185,104	$187,217	$183,349	$1,402	1	%	$5,060	3	%
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing	$49,443	$48,184	$47,480	$46,067	$43,831	$1,259	3	%	$5,612	13	%
Interest-bearing	104,918	104,037	103,156	105,282	103,333	881	1		1,585	2
Total deposits	154,361	152,221	150,636	151,349	147,164	2,140	1		7,197	5


Short-term borrowed funds	74	8	62	70	243	66	NM		(169)	(70)
Derivative liabilities	197	187	144	111	128	10	5		69	54
Deferred taxes, net	—	689	720	593	629	(689)	(100)		(629)	(100)
Long-term borrowed funds:
FHLB advances	19	20	18	19	19	(1)	(5)		—	—
Senior debt	5,326	5,345	5,357	6,714	6,740	(19)	—		(1,414)	(21)
Subordinated debt and other debt	1,587	1,582	1,582	1,583	1,587	5	—		—	—
Total long-term borrowed funds	6,932	6,947	6,957	8,316	8,346	(15)	—		(1,414)	(17)
Other liabilities	3,425	3,532	3,386	4,125	4,166	(107)	(3)		(741)	(18)
TOTAL LIABILITIES	164,989	163,584	161,905	164,564	160,676	1,405	1		4,313	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	1,965	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	19,005	18,981	18,964	18,945	18,940	24	—		65	—
Retained earnings	7,978	7,648	7,314	6,866	6,445	330	4		1,533	24
Treasury stock, at cost	(4,918)	(4,718)	(4,718)	(4,718)	(4,623)	(200)	(4)		(295)	(6)
Accumulated other comprehensive income (loss)	(665)	(508)	(381)	(411)	(60)	(157)	(31)		(605)	NM
TOTAL STOCKHOLDERS' EQUITY	23,420	23,423	23,199	22,653	22,673	(3)	—		747	3
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$188,409	$187,007	$185,104	$187,217	$183,349	$1,402	1	%	$5,060	3	%
Memo: Total tangible common equity	$14,609	$14,677	$14,466	$13,964	$13,979	($68)	—	%	$630	5	%

LOANS AND DEPOSITS

(in millions)


PERIOD-END BALANCES	AS OF					DECEMBER 31, 2021 CHANGE
	Dec 31, 2021	Sept 30, 2021	June 30, 2021	Mar 31, 2021	Dec 31, 2020	Sept 30, 2021			December 31, 2020
						$	%		$	%
LOANS AND LEASES
Commercial and industrial	$44,500	$41,854	$42,842	$44,058	$44,173	$2,646	6	%	$327	1	%
Commercial real estate	14,264	14,508	14,412	14,553	14,652	(244)	(2)		(388)	(3)
Leases	1,586	1,593	1,829	1,802	1,968	(7)	—		(382)	(19)
Total commercial	60,350	57,955	59,083	60,413	60,793	2,395	4		(443)	(1)
Residential mortgages	22,822	21,513	20,538	19,202	19,539	1,309	6		3,283	17




Home equity	12,015	11,889	11,841	11,854	12,149	126	1		(134)	(1)
Automobile	14,549	13,492	12,780	12,344	12,153	1,057	8		2,396	20
Education	12,997	13,000	12,800	12,691	12,308	(3)	—		689	6


Other retail	5,430	5,469	5,539	5,691	6,148	(39)	(1)		(718)	(12)
Total retail	67,813	65,363	63,498	61,782	62,297	2,450	4		5,516	9
Total loans and leases	$128,163	$123,318	$122,581	$122,195	$123,090	$4,845	4	%	$5,073	4	%
Loans held for sale, at fair value	2,733	3,177	3,616	4,304	3,564	(444)	(14)		(831)	(23)
Other loans held for sale	735	93	82	75	439	642	NM		296	67
Loans and leases and loans held for sale	$131,631	$126,588	$126,279	$126,574	$127,093	$5,043	4	%	$4,538	4	%

DEPOSITS
Demand	$49,443	$48,184	$47,480	$46,067	$43,831	$1,259	3	%	$5,612	13	%
Checking with interest	30,409	27,985	28,074	26,883	27,204	2,424	9		3,205	12
Regular savings	22,030	21,166	20,382	19,634	18,044	864	4		3,986	22
Money market accounts	47,216	48,935	48,150	51,074	48,569	(1,719)	(4)		(1,353)	(3)
Term deposits	5,263	5,951	6,550	7,691	9,516	(688)	(12)		(4,253)	(45)
Total deposits	$154,361	$152,221	$150,636	$151,349	$147,164	$2,140	1	%	$7,197	5	%


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

	QUARTERLY TRENDS												4Q21 Change
	4Q21				3Q21				4Q20				3Q21			4Q20
	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	$11,152	$4	0.15	%	$13,749	$6	0.16	%	$11,303	$3	0.10	%	($2,597)	($2)	(1) bps	($151)	$1	5 bps
Taxable investment securities	28,191	119	1.68		27,466	116	1.69		25,471	121	1.89		725	3	(1)	2,720	(2)	(21)
Non-taxable investment securities	2	—	2.60		2	—	2.60		3	—	2.60		—	—	—	(1)	—	—
Total investment securities	28,193	119	1.68		27,468	116	1.69		25,474	121	1.89		725	3	(1)	2,719	(2)	(21)

Commercial and industrial	43,070	345	3.12		42,330	362	3.36		44,594	370	3.25		740	(17)	(24)	(1,524)	(25)	(13)
Commercial real estate	14,261	95	2.61		14,656	96	2.56		14,745	97	2.58		(395)	(1)	5	(484)	(2)	3
Leases	1,569	12	3.00		1,695	12	2.72		2,176	14	2.58		(126)	—	28	(607)	(2)	42
Total commercial	58,900	452	2.99		58,681	470	3.14		61,515	481	3.07		219	(18)	(15)	(2,615)	(29)	(8)
Residential mortgages	22,047	154	2.81		20,834	157	3.01		19,543	151	3.08		1,213	(3)	(20)	2,504	3	(27)
Home equity	11,948	91	3.02		11,829	92	3.08		12,239	98	3.18		119	(1)	(6)	(291)	(7)	(16)
Automobile	13,976	130	3.67		13,136	126	3.83		12,066	129	4.26		840	4	(16)	1,910	1	(59)
Education	12,885	133	4.09		12,707	134	4.19		11,931	136	4.55		178	(1)	(10)	954	(3)	(46)
Other retail	5,453	96	7.07		5,454	99	7.15		6,167	110	7.10		(1)	(3)	(8)	(714)	(14)	(3)
Total retail	66,309	604	3.63		63,960	608	3.78		61,946	624	4.01		2,349	(4)	(15)	4,363	(20)	(38)
Total loans and leases	125,209	1,056	3.33		122,641	1,078	3.47		123,461	1,105	3.54		2,568	(22)	(14)	1,748	(49)	(21)
Loans held for sale, at fair value	3,133	19	2.44		3,299	21	2.51		3,185	19	2.41		(166)	(2)	(7)	(52)	—	3
Other loans held for sale	321	4	4.85		112	1	3.98		110	1	3.14		209	3	87	211	3	171
Total interest-earning assets	168,008	1,202	2.83		167,269	1,222	2.89		163,533	1,249	3.02		739	(20)	(6)	4,475	(47)	(19)


Noninterest-earning assets	19,220				18,839				17,528				381			1,692
TOTAL ASSETS	$187,228				$186,108				$181,061				$1,120			$6,167
INTEREST-BEARING LIABILITIES
Checking with interest	$28,075	6	0.09		$27,965	7	0.09		$26,432	8	0.11		$110	($1)	—	$1,643	($2)	(2)
Money market accounts	48,512	17	0.14		49,159	18	0.14		48,667	27	0.22		(647)	(1)	—	(155)	(10)	(8)
Regular savings	21,575	4	0.09		20,803	5	0.09		17,566	7	0.15		772	(1)	—	4,009	(3)	(6)
Term deposits	5,636	6	0.33		6,071	5	0.43		10,191	27	1.09		(435)	1	(10)	(4,555)	(21)	(76)
Total interest-bearing deposits	103,798	33	0.13		103,998	35	0.14		102,856	69	0.27		(200)	(2)	(1)	942	(36)	(14)
Short-term borrowed funds	24	1	5.15		23	—	2.06		232	1	0.44		1	1	309	(208)	—	471
FHLB advances	18	—	0.85		19	—	0.88		19	—	0.93		(1)	—	(3)	(1)	—	(8)
Senior debt	5,338	25	1.87		5,356	25	1.84		6,845	33	1.93		(18)	—	3	(1,507)	(8)	(6)
Subordinated debt and other debt	1,587	17	4.35		1,581	17	4.25		1,586	17	4.35		6	—	10	1	—	—
Total long-term borrowed funds	6,943	42	2.43		6,956	42	2.38		8,450	50	2.38		(13)	—	5	(1,507)	(8)	5
Total borrowed funds	6,967	43	2.44		6,979	42	2.38		8,682	51	2.33		(12)	1	6	(1,715)	(8)	11
Total interest-bearing liabilities	110,765	76	0.27		110,977	77	0.28		111,538	120	0.43		(212)	(1)	(1)	(773)	(44)	(16)
Demand deposits	49,206				47,873				42,411				1,333			6,795
Other liabilities	3,924				3,904				4,600				20			(676)
TOTAL LIABILITIES	163,895				162,754				158,549				1,141			5,346
STOCKHOLDERS' EQUITY	23,333				23,354				22,512				(21)			821
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$187,228				$186,108				$181,061				$1,120			$6,167
INTEREST RATE SPREAD			2.56	%			2.61	%			2.60	%			(5)			(4)
NET INTEREST MARGIN AND NET INTEREST INCOME		$1,126	2.66	%		$1,145	2.72	%		$1,129	2.75	%		($19)	(6)	($3)		(9)
NET INTEREST MARGIN AND NET INTEREST INCOME, FTE1		$1,128	2.66	%		$1,147	2.72	%		$1,132	2.75	%		($19)	(6)	($4)		(9)
Memo: Total deposits (interest-bearing and demand)	$153,004	$33	0.09	%	$151,871	$35	0.09	%	$145,267	$69	0.19	%	$1,133		— bps	$7,737	($36)	(10) 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.


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

	FULL YEAR								2021 Change
	2021				2020				2020
	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	$11,762	$16	0.13	%	$6,175	$11	0.18	%	$5,587	$5	(5)	bps
Taxable investment securities	27,574	487	1.76		25,160	519	2.06		2,414	(32)	(30)
Non-taxable investment securities	3	—	2.60		4	—	2.60		(1)	—	—
Total investment securities	27,577	487	1.76		25,164	519	2.06		2,413	(32)	(30)
Commercial and industrial	43,512	1,399	3.17		46,255	1,582	3.36		(2,743)	(183)	(19)
Commercial real estate	14,515	380	2.58		14,452	438	2.98		63	(58)	(40)
Leases	1,742	49	2.79		2,365	64	2.71		(623)	(15)	8
Total commercial	59,769	1,828	3.02		63,072	2,084	3.25		(3,303)	(256)	(23)
Residential mortgages	20,636	613	2.97		19,178	618	3.22		1,458	(5)	(25)
Home equity	11,901	370	3.11		12,607	461	3.66		(706)	(91)	(55)
Automobile	12,972	506	3.90		12,064	517	4.29		908	(11)	(39)
Education	12,666	536	4.23		11,165	560	5.02		1,501	(24)	(79)
Other retail	5,607	400	7.15		6,458	479	7.41		(851)	(79)	(26)
Total retail	63,782	2,425	3.80		61,472	2,635	4.29		2,310	(210)	(49)
Total loans and leases	123,551	4,253	3.42		124,544	4,719	3.76		(993)	(466)	(34)
Loans held for sale, at fair value	3,359	82	2.45		2,772	75	2.72		587	7	(27)
Other loans held for sale	262	13	4.87		620	33	5.22		(358)	(20)	(35)
Total interest-earning assets	166,511	4,851	2.90		159,275	5,357	3.35		7,236	(506)	(45)
Noninterest-earning assets	18,595				17,167				1,428
TOTAL ASSETS	$185,106				$176,442				$8,664
INTEREST-BEARING LIABILITIES
Checking with interest	$27,365	24	0.09		$26,002	64	0.24		$1,363	(40)	(15)
Money market accounts	49,148	78	0.16		44,732	192	0.43		4,416	(114)	(27)
Regular savings	20,276	19	0.10		16,144	50	0.31		4,132	(31)	(21)
Term deposits	6,802	39	0.58		14,309	203	1.42		(7,507)	(164)	(84)
Total interest-bearing deposits	103,591	160	0.15		101,187	509	0.50		2,404	(349)	(35)
Short-term borrowed funds	66	1	1.13		334	2	0.52		(268)	(1)	61
FHLB advances	18	—	0.89		1,929	30	1.53		(1,911)	(30)	(64)
Senior debt	5,810	110	1.89		7,280	159	2.18		(1,470)	(49)	(29)
Subordinated debt and other debt	1,584	68	4.27		1,644	71	4.34		(60)	(3)	(7)
Total long-term borrowed funds	7,412	178	2.39		10,853	260	2.39		(3,441)	(82)	—
Total borrowed funds	7,478	179	2.38		11,187	262	2.33		(3,709)	(83)	5
Total interest-bearing liabilities	111,069	339	0.30		112,374	771	0.69		(1,305)	(432)	(39)
Demand deposits	46,898				37,553				9,345
Other liabilities	4,105				4,280				(175)
TOTAL LIABILITIES	162,072				154,207				7,865
STOCKHOLDERS' EQUITY	23,034				22,235				799
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$185,106				$176,442				$8,664
INTEREST RATE SPREAD			2.60	%			2.66	%			(6)
NET INTEREST MARGIN AND NET INTEREST INCOME		$4,512	2.71	%		$4,586	2.88	%		($74)	(17)
NET INTEREST MARGIN AND NET INTEREST INCOME, FTE1		$4,521	2.72	%		$4,599	2.89	%		($78)	(17)
Memo: Total deposits (interest-bearing and demand)	$150,489	$160	0.11	%	$138,740	$509	0.37	%	$11,749	($349)	(26)	bps

MORTGAGE BANKING FEES SUMMARY

(in millions, except ratio data)


	QUARTERLY TRENDS																		FULL YEAR
											4Q21 Change												2021 Change
	4Q21		3Q21		2Q21		1Q21		4Q20		3Q21				4Q20				2021		2020		2020
											$/bps		%		$/bps		%						$/bps		%
MORTGAGE BANKING FEES1
Production revenue	$60		$98		$86		$140		$193		($38)		(39	%)	($133)		(69	%)	$384		$875		($491)		(56	%)
Mortgage servicing revenue	14		9		13		—		4		5		56		10		250		36		32		4		13
MSR valuation changes, net of hedge impact	2		1		(14)		25		(4)		1		100		6		NM		14		8		6		75
Total mortgage banking fees	$76		$108		$85		$165		$193		($32)		(30	%)	($117)		(61	%)	$434		$915		($481)		(53	%)

Pull-through adjusted locks	$5,785		$7,359		$8,154		$8,762		$9,262		($1,574)		(21	%)	($3,477)		(38	%)	$30,060		$37,204		($7,144)		(19	%)

Production revenue as a percentage of Pull-through adjusted locks	1.05	%	1.32	%	1.05	%	1.59	%	2.09	%	(27)	bps			(104)	bps			1.27	%	2.35	%	(108)	bps



RESIDENTIAL REAL ESTATE ORIGINATIONS
Retail	$3,794		$3,560		$3,956		$3,744		$4,096		$234		7	%	($302)		(7	%)	$15,054		$14,801		$253		2	%
Third Party	6,084		6,749		7,443		7,398		6,762		(665)		(10)		(678)		(10)		27,674		25,774		1,900		7
Total	$9,878		$10,309		$11,399		$11,142		$10,858		($431)		(4	%)	(980)		(9	%)	$42,728		$40,575		$2,153		5	%

Originated for sale	$7,814		$8,457		$9,592		$9,716		$9,215		($643)		(8	%)	($1,401)		(15	%)	$35,579		$33,549		$2,030		6	%
Originated for investment	2,064		1,852		1,807		1,426		1,643		212		11		421		26		7,149		7,026		123		2
Total	$9,878		$10,309		$11,399		$11,142		$10,858		($431)		(4	%)	($980)		(9	%)	$42,728		$40,575		$2,153		5	%

MORTGAGE SERVICING INFORMATION (UPB)
Loans serviced for others	$90,189		$87,350		$84,596		$81,805		$81,240		$2,839		3	%	$8,949		11	%	$90,189		$81,240		$8,949		11	%
Owned loans serviced	24,855		23,988		23,329		22,762		22,582		867		4		2,273		10		24,855		22,582		2,273		10
Total	$115,044		$111,338		$107,925		$104,567		$103,822		$3,706		3	%	$11,222		11	%	$115,044		$103,822		$11,222		11	%

MSR at fair value	$1,029		$978		$902		$893		$658		$51		5	%	$371		56	%	$1,029		$658		$371		56	%

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																		FULL YEAR
CONSUMER BANKING											4Q21 Change												2021 Change
	4Q21		3Q21		2Q21		1Q21		4Q20		3Q21				4Q20				2021		2020		2020
											$/bps		%		$/bps		%						$/bps		%
Net interest income	$883		$919		$897		$863		$859		($36)		(4	%)	$24		3	%	$3,562		$3,311		$251		8	%
Noninterest income	274		315		283		351		375		(41)		(13)		(101)		(27)		1,223		1,655		(432)		(26)
Total revenue	1,157		1,234		1,180		1,214		1,234		(77)		(6)		(77)		(6)		4,785		4,966		(181)		(4)
Noninterest expense	737		749		751		750		749		(12)		(2)		(12)		(2)		2,987		2,964		23		1
Profit before provision for credit losses	420		485		429		464		485		(65)		(13)		(65)		(13)		1,798		2,002		(204)		(10)
Net charge-offs	46		35		45		59		56		11		31		(10)		(18)		185		288		(103)		(36)
Income before income tax expense	374		450		384		405		429		(76)		(17)		(55)		(13)		1,613		1,714		(101)		(6)
Income tax expense	95		114		98		103		107		(19)		(17)		(12)		(11)		410		429		(19)		(4)
Net income	$279		$336		$286		$302		$322		($57)		(17	%)	($43)		(13	%)	$1,203		$1,285		($82)		(6	%)
AVERAGE BALANCES
Total assets	$76,077		$75,070		$75,600		$75,283		$74,392		$1,007		1	%	$1,685		2	%	$75,509		$72,022		$3,487		5	%
Total loans and leases1	71,925		70,984		71,389		70,188		69,650		941		1		2,275		3		71,126		68,237		2,889		4
Deposits	101,642		100,968		100,933		97,180		95,007		674		1		6,635		7		100,195		91,541		8,654		9
Interest-earning assets	72,796		71,879		72,308		71,135		70,529		917		1		2,267		3		72,034		68,535		3,499		5
KEY METRICS
Net interest margin	4.82	%	5.07	%	4.97	%	4.93	%	4.85	%	(25)	bps			(3)	bps			4.95	%	4.83	%	12	bps
Efficiency ratio	63.68		60.73		63.62		61.79		60.75		295	bps			293	bps			62.42		56.69		573	bps
Loan-to-deposit ratio (period-end balances)	68.32		68.15		67.72		66.44		69.38		17	bps			(106)	bps			68.32		69.38		(106)	bps
Loan-to-deposit ratio (average balances)	67.97		67.25		67.21		68.99		70.12		72	bps			(215)	bps			67.84		71.34		(350)	bps
Return on average total tangible assets	1.46		1.78		1.52		1.63		1.72		(32)	bps			(26)	bps			1.60		1.79		(19)	bps

1Includes loans held for sale.

SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING

(in millions, except ratio data)


	QUARTERLY TRENDS																		FULL YEAR
COMMERCIAL BANKING											4Q21 Change												2021 Change
	4Q21		3Q21		2Q21		1Q21		4Q20		3Q21				4Q20				2021		2020		2020
											$/bps		%		$/bps		%						$/bps		%
Net interest income	$438		$428		$419		$421		$438		$10		2	%	$—		—	%	$1,706		$1,643		$63		4	%
Noninterest income	293		168		178		170		182		125		74		111		61		809		595		214		36
Total revenue	731		596		597		591		620		135		23		111		18		2,515		2,238		277		12
Noninterest expense	294		226		226		227		216		68		30		78		36		973		860		113		13
Profit before provision for credit losses	437		370		371		364		404		67		18		33		8		1,542		1,378		164		12
Net charge-offs	6		15		34		101		124		(9)		(60)		(118)		(95)		156		398		(242)		(61)
Income before income tax expense	431		355		337		263		280		76		21		151		54		1,386		980		406		41
Income tax expense	95		81		72		52		59		14		17		36		61		300		206		94		46
Net income	$336		$274		$265		$211		$221		$62		23	%	$115		52	%	$1,086		$774		$312		40	%
AVERAGE BALANCES
Total assets	$58,501		$56,702		$57,527		$57,738		$58,212		$1,799		3	%	$289		—	%	$57,617		$60,839		($3,222)		(5	%)
Total loans and leases1	55,550		53,815		54,758		54,813		55,407		1,735		3		143		—		54,734		57,935		(3,201)		(6)
Deposits	45,475		45,465		44,049		43,974		44,920		10		—		555		1		44,747		40,417		4,330		11
Interest-earning assets	55,891		54,177		55,143		55,175		55,752		1,714		3		139		—		55,096		58,334		(3,238)		(6)
KEY METRICS
Net interest margin	3.11	%	3.14	%	3.05	%	3.09	%	3.12	%	(3)	bps			(1)	bps			3.10	%	2.82	%	28	bps
Efficiency ratio	40.16		38.02		37.86		38.33		34.94		214	bps			522	bps			38.68		38.43		25	bps
Loan-to-deposit ratio (period-end balances)	125.31		116.54		118.72		120.66		121.09		877	bps			422	bps			125.31		121.09		422	bps
Loan-to-deposit ratio (average balances)	120.81		117.65		123.32		123.53		122.75		316	bps			(194)	bps			121.28		142.20		(2,092)	bps
Return on average total tangible assets	2.28		1.92		1.85		1.48		1.51		36	bps			77	bps			1.89		1.27		62	bps

1Includes loans held for sale.

SEGMENT FINANCIAL HIGHLIGHTS - OTHER

(in millions)


	QUARTERLY TRENDS											FULL YEAR
OTHER1						4Q21 Change								2021 Change
	4Q21	3Q21	2Q21	1Q21	4Q20	3Q21			4Q20			2021	2020	2020
						$	%		$	%				$	%
Net interest income	($195)	($202)	($192)	($167)	($168)	$7	3	%	($27)	(16	%)	($756)	($368)	($388)	(105	%)
Noninterest income	27	31	24	21	21	(4)	(13)		6	29		103	69	34	49
Total revenue	(168)	(171)	(168)	(146)	(147)	3	2		(21)	(14)		(653)	(299)	(354)	(118)
Noninterest expense	30	36	14	41	47	(6)	(17)		(17)	(36)		121	167	(46)	(28)
Loss before provision for credit losses	(198)	(207)	(182)	(187)	(194)	9	4		(4)	(2)		(774)	(466)	(308)	(66)
Provision for credit losses	(77)	(83)	(292)	(300)	(56)	6	7		(21)	(38)		(752)	930	(1,682)	NM
(Loss) income before income tax (benefit) expense	(121)	(124)	110	113	(138)	3	2		17	12		(22)	(1,396)	1,374	98
Income tax (benefit) expense	(36)	(44)	13	15	(51)	8	18		15	29		(52)	(394)	342	87
Net (loss) income	($85)	($80)	$97	$98	($87)	($5)	(6	%)	$2	2		$30	($1,002)	$1,032	NM
AVERAGE BALANCES
Total assets	$52,650	$54,336	$51,329	$49,548	$48,457	($1,686)	(3	%)	$4,193	9	%	$51,980	$43,581	$8,399	19	%
Total loans and leases2	1,188	1,254	1,327	1,485	1,699	(66)	(5)		(511)	(30)		1,312	1,764	(452)	(26)
Deposits	5,887	5,438	5,367	5,495	5,340	449	8		547	10		5,547	6,782	(1,235)	(18)
Interest-earning assets	39,322	41,214	38,882	38,071	37,252	(1,892)	(5)		2,070	6		39,381	32,406	6,975	22

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.

2Includes loans held for sale.

CREDIT-RELATED INFORMATION

(in millions, except ratio data)


	AS OF										DECEMBER 31, 2021 CHANGE
	Dec 31, 2021		Sept 30, 2021		June 30, 2021		Mar 31, 2021		Dec 31, 2020		Sept 30, 2021				December 31, 2020
											$/bps		%		$/bps		%
NONACCRUAL LOANS AND LEASES
Commercial and industrial	$171		$170		$163		$281		$280		$1		1	%	($109)		(39	%)
Commercial real estate	11		98		102		100		176		(87)		(89)		(165)		(94)
Leases	1		1		1		1		2		—		—		(1)		(50)
Total commercial	183		269		266		382		458		(86)		(32)		(275)		(60)
Residential mortgages1	201		164		174		237		167		37		23		34		20
Home equity	220		216		234		269		276		4		2		(56)		(20)
Automobile	55		55		62		70		72		—		—		(17)		(24)
Education	23		23		21		22		18		—		—		5		28
Other retail	20		20		22		28		28		—		—		(8)		(29)
Total retail	519		478		513		626		561		41		9		(42)		(7)
Nonaccrual loans and leases	702		747		779		1,008		1,019		(45)		(6)		(317)		(31)
Repossessed assets	22		21		22		18		19		1		5		3		16
Nonaccrual loans and leases and repossessed assets	$724		$768		$801		$1,026		$1,038		($44)		(6	%)	($314)		(30	%)
NONACCRUAL LOANS AND LEASES BY PRODUCT2
Commercial	$183		$269		$266		$382		$458		($86)		(32	%)	($275)		(60	%)
Retail	541		499		535		644		580		42		8		(39)		(7)
Total nonaccrual loans and leases	$724		$768		$801		$1,026		$1,038		($44)		(6	%)	($314)		(30	%)
ASSET QUALITY RATIOS
Allowance for loan and lease losses to loans and leases	1.37	%	1.50	%	1.59	%	1.80	%	1.98	%	(13)	bps			(61)	bps
Allowance for credit losses to loans and leases	1.51		1.63		1.70		1.94		2.17		(12)				(66)
Allowance for loan and lease losses to nonaccrual loans and leases	250.63		248.33		249.83		217.74		239.72		230				1,091
Allowance for credit losses to nonaccrual loans and leases	275.72		268.30		266.98		235.42		262.02		741				1,370
Nonaccrual loans and leases to loans and leases	0.55		0.61		0.64		0.82		0.83		(6)				(28)

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					DECEMBER 31, 2021 CHANGE
	Dec 31, 2021	Sept 30, 2021	June 30, 2021	Mar 31, 2021	Dec 31, 2020	Sept 30, 2021			December 31, 2020
						$/bps	%		$/bps	%
LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING
Commercial and industrial	$9	$4	$—	$3	$20	$5	125	%	($11)	(55	%)
Commercial real estate	—	—	—	9	—	—	—		—	—
Leases	—	—	1	—	1	—	—		(1)	(100)
Total commercial	9	4	1	12	21	5	125		(12)	(57)
Residential mortgages1	549	293	270	23	30	256	87		519	NM






Education	1	1	2	2	2	—	—		(1)	(50)


Other retail	16	14	7	9	9	2	14		7	78
Total retail	566	308	279	34	41	258	84		525	NM
Total loans and leases	$575	$312	$280	$46	$62	$263	84	%	$513	NM

1 90+ days past due and accruing includes $544 million, $289 million, $266 million, $20 million, and $21 million of loans fully or partially guaranteed by the FHA, VA, and USDA for December 31, 2021, September 30, 2021, June 30, 2021, March 31, 2021 and December 31, 2020, respectively.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS											FULL YEAR
						4Q21 Change								2021 Change
	4Q21	3Q21	2Q21	1Q21	4Q20	3Q21			4Q20			2021	2020	2020
						$	%		$	%				$	%
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS
GROSS CHARGE-OFFS
Commercial and industrial	$14	$12	$32	$80	$51	$2	17	%	($37)	(73)		$138	$247	($109)	(44	%)
Commercial real estate	—	5	—	53	70	(5)	(100)		(70)	(100)		58	112	(54)	(48)
Leases	8	—	13	1	24	8	100		(16)	(67)		22	78	(56)	(72)
Total commercial	22	17	45	134	145	5	29		(123)	(85)		218	437	(219)	(50)
Residential mortgages	1	2	1	—	2	(1)	(50)		(1)	(50)		4	7	(3)	(43)
Home equity	—	3	3	4	5	(3)	(100)		(5)	(100)		10	25	(15)	(60)
Automobile	18	14	15	25	22	4	29		(4)	(18)		72	114	(42)	(37)
Education	21	18	18	13	10	3	17		11	110		70	51	19	37
Other retail	38	33	43	51	48	5	15		(10)	(21)		165	209	(44)	(21)
Total retail	78	70	80	93	87	8	11		(9)	(10)		321	406	(85)	(21)
Total gross charge-offs	$100	$87	$125	$227	$232	$13	15	%	($132)	(57	%)	$539	$843	($304)	(36	%)
GROSS RECOVERIES
Commercial and industrial	$5	$2	$4	$3	$4	$3	150	%	$1	25	%	$14	$11	$3	27	%
Commercial real estate	9	—	—	27	1	9	100		8	NM		36	1	35	NM
Leases	3	1	—	—	—	2	200		3	100		4	—	4	100
Total commercial	17	3	4	30	5	14	NM		12	240		54	12	42	NM
Residential mortgages	2	2	2	1	2	—	—		—	—		7	6	1	17
Home equity	13	15	13	11	11	(2)	(13)		2	18		52	38	14	37
Automobile	13	12	17	14	13	1	8		—	—		56	51	5	10
Education	4	5	5	6	4	(1)	(20)		—	—		20	16	4	25
Other retail	6	6	6	7	7	—	—		(1)	(14)		25	27	(2)	(7)
Total retail	38	40	43	39	37	(2)	(5)		1	3		160	138	22	16
Total gross recoveries	$55	$43	$47	$69	$42	$12	28	%	$13	31	%	$214	$150	$64	43	%
NET CHARGE-OFFS (RECOVERIES)
Commercial and industrial	$9	$10	$28	$77	$47	($1)	(10	%)	($38)	(81)		$124	$236	($112)	(47)
Commercial real estate	(9)	5	—	26	69	(14)	NM		(78)	NM		22	111	(89)	(80)
Leases	5	(1)	13	1	24	6	NM		(19)	(79)		18	78	(60)	(77)
Total commercial	5	14	41	104	140	(9)	(64)		(135)	(96)		164	425	(261)	(61)
Residential mortgages	(1)	—	(1)	(1)	—	(1)	(100)		(1)	(100)		(3)	1	(4)	NM
Home equity	(13)	(12)	(10)	(7)	(6)	(1)	(8)		(7)	(117)		(42)	(13)	(29)	(223)
Automobile	5	2	(2)	11	9	3	150		(4)	(44)		16	63	(47)	(75)
Education	17	13	13	7	6	4	31		11	183		50	35	15	43
Other retail	32	27	37	44	41	5	19		(9)	(22)		140	182	(42)	(23)
Total retail	40	30	37	54	50	10	33		(10)	(20)		161	268	(107)	(40)
Total net charge-offs	$45	$44	$78	$158	$190	$1	2	%	($145)	(76	%)	$325	$693	($368)	(53	%)

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except rates)


	QUARTERLY TRENDS																		FULL YEAR
											4Q21 Change												2021 Change
	4Q21		3Q21		2Q21		1Q21		4Q20		3Q21				4Q20				2021		2020		2020
											$/bps		%		$/bps		%						$/bps		%
ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES
Commercial and industrial	0.08	%	0.09	%	0.25	%	0.70	%	0.41	%	(1)	bps			(33)	bps			0.28	%	0.51	%	(23)	bps
Commercial real estate	(0.24)		0.12		—		0.73		1.88		(36)	bps			(212)	bps			0.15		0.77		(62)	bps
Leases	1.22		(0.22)		2.97		0.26		4.44		144	bps			(322)	bps			1.06		3.32		(226)	bps
Total commercial	0.03		0.09		0.27		0.69		0.91		(6)	bps			(88)	bps			0.27		0.67		(40)	bps
Residential mortgages	(0.01)		—		(0.03)		(0.01)		—		(1)	bps			(1)	bps			(0.01)		0.01		(2)	bps
Home equity	(0.41)		(0.42)		(0.33)		(0.25)		(0.19)		1	bps			(22)	bps			(0.35)		(0.11)		(24)	bps
Automobile	0.13		0.06		(0.04)		0.35		0.29		7	bps			(16)	bps			0.12		0.52		(40)	bps
Education	0.51		0.41		0.40		0.24		0.18		10	bps			33	bps			0.39		0.31		8	bps
Other retail	2.30		1.99		2.63		3.00		2.62		31	bps			(32)	bps			2.49		2.82		(33)	bps
Total retail	0.24		0.19		0.24		0.35		0.32		5	bps			(8)	bps			0.25		0.44		(19)	bps
Total loans and leases	0.14	%	0.14	%	0.25	%	0.52	%	0.61	%	—	bps			(47)	bps			0.26	%	0.56	%	(30)	bps
Memo: Average loans
Commercial and industrial	$43,070		$42,330		$44,388		$44,287		$44,594		$740		2	%	($1,524)		(3	%)	$43,512		$46,255		($2,743)		(6	%)
Commercial real estate	14,261		14,656		14,473		14,675		14,745		(395)		(3)		(484)		(3)		14,515		14,452		63		—
Leases	1,569		1,695		1,792		1,915		2,176		(126)		(7)		(607)		(28)		1,742		2,365		(623)		(26)
Total commercial	58,900		58,681		60,653		60,877		61,515		219		—		(2,615)		(4)		59,769		63,072		(3,303)		(5)
Residential mortgages	22,047		20,834		20,242		19,388		19,543		1,213		6		2,504		13		20,636		19,178		1,458		8
Home equity	11,948		11,829		11,825		12,001		12,239		119		1		(291)		(2)		11,901		12,607		(706)		(6)
Automobile	13,976		13,136		12,526		12,229		12,066		840		6		1,910		16		12,972		12,064		908		8
Education	12,885		12,707		12,632		12,436		11,931		178		1		954		8		12,666		11,165		1,501		13
Other retail	5,453		5,454		5,612		5,916		6,167		(1)		—		(714)		(12)		5,607		6,458		(851)		(13)
Total retail	66,309		63,960		62,837		61,970		61,946		2,349		4		4,363		7		63,782		61,472		2,310		4
Total loans and leases	$125,209		$122,641		$123,490		$122,847		$123,461		$2,568		2	%	$1,748		1	%	$123,551		$124,544		($993)		(1	%)

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS											FULL YEAR
						4Q21 Change								2021 Change
	4Q21	3Q21	2Q21	1Q21	4Q20	3Q21			4Q20			2021	2020	2020
						$	%		$	%				$	%
SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES
Allowance for loan and lease losses - beginning	$1,855	$1,947	$2,194	$2,443	$2,542	($92)	(5	%)	($687)	(27	%)	$2,443	$1,252	$1,191	95	%
Cumulative effect of change in accounting principle:
Commercial	—	—	—	—	—	—	—		—	—		—	(176)	176	(100)
Retail	—	—	—	—	—	—	—		—	—		—	629	(629)	(100)
Total cumulative effect of change in accounting principle	—	—	—	—	—	—	—		—	—		—	453	(453)	(100)
Allowance for loan and lease losses - beginning, adjusted	1,855	1,947	2,194	2,443	2,542	(92)	(5)		(687)	(27)		2,443	1,705	738	43
Charge-offs:
Commercial	22	17	45	134	145	5	29		(123)	(85)		218	437	(219)	(50)
Retail	78	70	80	93	87	8	11		(9)	(10)		321	406	(85)	(21)
Total charge-offs	100	87	125	227	232	13	15		(132)	(57)		539	843	(304)	(36)
Recoveries:
Commercial	17	3	4	30	5	14	NM		12	240		54	12	42	NM
Retail	38	40	43	39	37	(2)	(5)		1	3		160	138	22	16
Total recoveries	55	43	47	69	42	12	28		13	31		214	150	64	43
Net charge-offs	45	44	78	158	190	1	2		(145)	(76)		325	693	(368)	(53)
Provision for loan and lease losses:
Commercial	(41)	(72)	(152)	17	84	31	43		(125)	NM		(248)	1,160	(1,408)	NM
Retail	(11)	24	(17)	(108)	7	(35)	NM		(18)	NM		(112)	271	(383)	NM
Total provision for loan and lease losses	(52)	(48)	(169)	(91)	91	(4)	(8)		(143)	NM		(360)	1,431	(1,791)	NM

Allowance for loan and lease losses - ending	$1,758	$1,855	$1,947	$2,194	$2,443	($97)	(5	%)	($685)	(28	%)	$1,758	$2,443	($685)	(28	%)

Allowance for unfunded lending commitments - beginning	$149	$134	$178	$227	$194	$15	11	%	($45)	(23	%)	$227	$44	$183	NM
Cumulative effect of change in accounting principle	—	—	—	—	—	—	—		—	—		—	(2)	2	100
Provision for unfunded lending commitments	27	15	(44)	(49)	33	12	80		(6)	(19)		(51)	185	(236)	NM
Allowance for unfunded lending commitments - ending	$176	$149	$134	$178	$227	$27	18	%	($51)	(22)		$176	$227	($51)	(22)
Total allowance for credit losses - ending	$1,934	$2,004	$2,081	$2,372	$2,670	($70)	(3	%)	($736)	(28	%)	$1,934	$2,670	($736)	(28	%)

Memo: Total allowance for credit losses by product
Commercial	$974	$997	$1,074	$1,311	$1,419	($23)	(2	%)	($445)	(31	%)	$974	$1,419	($445)	(31	%)
Retail	960	1,007	1,007	1,061	1,251	(47)	(5)		(291)	(23)		960	1,251	(291)	(23)
Total allowance for credit losses	$1,934	$2,004	$2,081	$2,372	$2,670	($70)	(3	%)	($736)	(28	%)	$1,934	$2,670	($736)	(28	%)

CAPITAL AND RATIOS

(in millions, except ratio data)


	AS OF																FULL YEAR
											DECEMBER 31, 2021 CHANGE								2021 Change
	Dec 31, 2021		Sept 30, 2021		June 30, 2021		Mar 31, 2021		Dec 31, 2020		Sept 30, 2021			December 31, 2020			2021	2020	2020
											$	%		$	%				$	%
CAPITAL RATIOS AND COMPONENTS (PRELIMINARY)
CET1 capital	$15,656		$15,584		$15,266		$14,867		$14,607		$72	—	%	$1,049	7	%
Tier 1 capital	17,670		17,598		17,280		16,832		16,572		72	—		1,098	7
Total capital	20,244		20,295		20,111		19,879		19,602		(51)	—		642	3
Risk-weighted assets	158,831		151,796		148,563		147,817		146,781		7,035	5		12,050	8
Adjusted average assets1	181,800		180,528		178,929		176,890		175,370		1,272	1		6,430	4
CET1 capital ratio	9.9	%	10.3	%	10.3	%	10.1	%	10.0	%
Tier 1 capital ratio	11.1		11.6		11.6		11.4		11.3
Total capital ratio	12.7		13.4		13.5		13.4		13.4
Tier 1 leverage ratio	9.7		9.7		9.7		9.5		9.4
TANGIBLE COMMON EQUITY (PERIOD-END)
Common stockholders' equity	$21,406		$21,409		$21,185		$20,688		$20,708		($3)	—	%	$698	3	%	$21,406	$20,708	$698	3	%
Less: Goodwill	7,116		7,065		7,050		7,050		7,050		51	1		66	1		7,116	7,050	66	1
Less: Other intangible assets	64		51		52		54		58		13	25		6	10		64	58	6	10
Add: Deferred tax liabilities2	383		384		383		380		379		(1)	—		4	1		383	379	4	1
Total tangible common equity	$14,609		$14,677		$14,466		$13,964		$13,979		($68)	—	%	$630	5	%	$14,609	$13,979	$630	5	%
TANGIBLE COMMON EQUITY (AVERAGE)
Common stockholders' equity	$21,320		$21,326		$20,833		$20,611		$20,547		($6)	—	%	$773	4	%	$21,025	$20,438	$587	3	%
Less: Goodwill	7,092		7,055		7,050		7,050		7,050		37	1		42	1		7,062	7,049	13	—
Less: Other intangible assets	56		52		53		57		60		4	8		(4)	(7)		54	64	(10)	(16)
Add: Deferred tax liabilities2	383		383		381		379		377		—	—		6	2		381	376	5	1
Total tangible common equity	$14,555		$14,602		$14,111		$13,883		$13,814		($47)	—	%	$741	5	%	$14,290	$13,701	$589	4	%
INTANGIBLE ASSETS (PERIOD-END)
Goodwill	$7,116		$7,065		$7,050		$7,050		$7,050		$51	1	%	$66	1	%	$7,116	$7,050	$66	1	%
Other intangible assets	64		51		52		54		58		13	25		6	10		64	58	6	10
Total intangible assets	$7,180		$7,116		$7,102		$7,104		$7,108		$64	1	%	$72	1	%	$7,180	$7,108	$72	1	%

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 results. 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 in that period and, accordingly, are useful to consider in addition to our GAAP financial results. We further believe the presentation of Underlying results increases comparability of period-to-period 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											FULL YEAR
							4Q21 Change								2021 Change
		4Q21	3Q21	2Q21	1Q21	4Q20	3Q21			4Q20			2021	2020	2020
							$	%		$	%				$	%




Total revenue, Underlying:
Total revenue (GAAP)	A	$1,720	$1,659	$1,609	$1,659	$1,707	$61	4	%	$13	1	%	$6,647	$6,905	($258)	(4	%)
Less: Notable items		—	—	—	—	—	—	—		—	—		—	—	—	—
Total revenue, Underlying (non-GAAP)	B	$1,720	$1,659	$1,609	$1,659	$1,707	$61	4	%	$13	1	%	$6,647	$6,905	($258)	(4	%)
Noninterest expense, Underlying:
Noninterest expense (GAAP)	C	$1,061	$1,011	$991	$1,018	$1,012	$50	5	%	$49	5	%	$4,081	$3,991	$90	2	%
Less: Notable items		51	23	11	20	42	28	122		9	21		105	125	(20)	(16)
Noninterest expense, Underlying (non-GAAP)	D	$1,010	$988	$980	$998	$970	$22	2	%	$40	4	%	$3,976	$3,866	$110	3	%
Pre-provision profit:
Total revenue (GAAP)	A	$1,720	$1,659	$1,609	$1,659	$1,707	$61	4	%	$13	1	%	$6,647	$6,905	($258)	(4	%)
Less: Noninterest expense (GAAP)	C	1,061	1,011	991	1,018	1,012	50	5		49	5		4,081	3,991	90	2
Pre-provision profit (GAAP)		$659	$648	$618	$641	$695	$11	2	%	($36)	(5	%)	$2,566	$2,914	($348)	(12	%)
Pre-provision profit, Underlying:
Total revenue, Underlying (non-GAAP)	B	$1,720	$1,659	$1,609	$1,659	$1,707	$61	4	%	$13	1	%	$6,647	$6,905	($258)	(4	%)
Less: Noninterest expense, Underlying (non-GAAP)	D	1,010	988	980	998	970	22	2		40	4		3,976	3,866	110	3
Pre-provision profit, Underlying (non-GAAP)		$710	$671	$629	$661	$737	$39	6	%	($27)	(4	%)	$2,671	$3,039	($368)	(12	%)




Income before income tax expense, Underlying:
Income before income tax expense (GAAP)	E	$684	$681	$831	$781	$571	$3	—	%	$113	20	%	$2,977	$1,298	$1,679	129	%
Less: Expense before income tax benefit related to notable items		(51)	(23)	(11)	(20)	(42)	(28)	(122)		(9)	(21)		(105)	(125)	20	16
Income before income tax expense, Underlying (non-GAAP)	F	$735	$704	$842	$801	$613	$31	4	%	$122	20	%	$3,082	$1,423	$1,659	117	%
Income tax expense, Underlying:
Income tax expense (GAAP)	G	$154	$151	$183	$170	$115	$3	2	%	$39	34	%	$658	$241	$417	173	%
Less: Income tax benefit related to notable items		(12)	(7)	(3)	(5)	(18)	(5)	(71)		6	33		(27)	(42)	15	36
Income tax expense, Underlying (non-GAAP)	H	$166	$158	$186	$175	$133	$8	5	%	$33	25	%	$685	$283	$402	142	%
Net income, Underlying:
Net income (GAAP)	I	$530	$530	$648	$611	$456	$—	—	%	$74	16	%	$2,319	$1,057	$1,262	119	%
Add: Notable items, net of income tax benefit		39	16	8	15	24	23	144		15	63		78	83	(5)	(6)
Net income, Underlying (non-GAAP)	J	$569	$546	$656	$626	$480	$23	4	%	$89	19	%	$2,397	$1,140	$1,257	110	%
Net income available to common stockholders, Underlying:
Net income available to common stockholders (GAAP)	K	$498	$504	$616	$588	$424	($6)	(1	%)	$74	17	%	$2,206	$950	$1,256	132	%
Add: Notable items, net of income tax benefit		39	16	8	15	24	23	144		15	63		78	83	(5)	(6)
Net income available to common stockholders, Underlying (non-GAAP)	L	$537	$520	$624	$603	$448	$17	3	%	$89	20	%	$2,284	$1,033	$1,251	121	%

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED

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


		QUARTERLY TRENDS																		FULL YEAR
												4Q21 Change												2021 Change
		4Q21		3Q21		2Q21		1Q21		4Q20		3Q21				4Q20				2021		2020		2020
												$/bps		%		$/bps		%						$/bps		%
Operating leverage:
Total revenue (GAAP)	A	$1,720		$1,659		$1,609		$1,659		$1,707		$61		3.58	%	$13		0.68	%	$6,647		$6,905		($258)		(3.74	%)
Less: Noninterest expense (GAAP)	C	1,061		1,011		991		1,018		1,012		50		4.88		49		4.76		4,081		3,991		90		2.25
Operating leverage														(1.30	%)			(4.08	%)							(5.99	%)
Operating leverage, Underlying:
Total revenue, Underlying (non-GAAP)	B	$1,720		$1,659		$1,609		$1,659		$1,707		$61		3.58	%	$13		0.68	%	$6,647		$6,905		($258)		(3.74	%)
Less: Noninterest expense, Underlying (non-GAAP)	D	1,010		988		980		998		970		22		2.12		40		4.01		3,976		3,866		110		2.85
Operating leverage, Underlying (non-GAAP)														1.46	%			(3.33	%)							(6.59	%)
Efficiency ratio and efficiency ratio, Underlying:
Efficiency ratio	C/A	61.68	%	60.92	%	61.63	%	61.35	%	59.28	%	76	bps			240	bps			61.40	%	57.80	%	360	bps
Efficiency ratio, Underlying (non-GAAP)	D/B	58.71		59.55		60.92		60.19		56.83		(84)	bps			188	bps			59.82		55.99		383	bps



Effective income tax rate and effective income tax rate, Underlying:
Effective income tax rate	G/E	22.40	%	22.35	%	21.96	%	21.76	%	20.16	%	5	bps			224	bps			22.10	%	18.54	%	356	bps
Effective income tax rate, Underlying (non-GAAP)	H/F	22.61		22.45		22.01		21.85		21.70		16	bps			91	bps			22.21		19.92		229	bps
Return on average common equity and return on average common equity, Underlying:
Average common equity (GAAP)	M	$21,320		$21,326		$20,833		$20,611		$20,547		($6)		—	%	$773		4	%	$21,025		$20,438		$587		3	%
Return on average common equity	K/M	9.26	%	9.39	%	11.85	%	11.57	%	8.20	%	(13)	bps			106	bps			10.49	%	4.65	%	584	bps
Return on average common equity, Underlying (non-GAAP)	L/M	9.97		9.70		12.02		11.85		8.66		27	bps			131	bps			10.86		5.05		581	bps
Return on average tangible common equity and return on average tangible common equity, Underlying:
Average common equity (GAAP)	M	$21,320		$21,326		$20,833		$20,611		$20,547		($6)		—	%	$773		4	%	$21,025		$20,438		$587		3	%
Less: Average goodwill (GAAP)		7,092		7,055		7,050		7,050		7,050		37		1		42		1		7,062		7,049		13		—
Less: Average other intangibles (GAAP)		56		52		53		57		60		4		8		(4)		(7)		54		64		(10)		(16)
Add: Average deferred tax liabilities related to goodwill (GAAP)		383		383		381		379		377		—		—		6		2		381		376		5		1
Average tangible common equity	N	$14,555		$14,602		$14,111		$13,883		$13,814		($47)		—	%	$741		5	%	$14,290		$13,701		$589		4	%
Return on average tangible common equity	K/N	13.57	%	13.71	%	17.50	%	17.17	%	12.20	%	(14)	bps			137	bps			15.44	%	6.93	%	851	bps
Return on average tangible common equity, Underlying (non-GAAP)	L/N	14.61		14.17		17.74		17.59		12.89		44	bps			172	bps			15.98		7.53		845	bps
Return on average total assets and return on average total assets, Underlying:
Average total assets (GAAP)	O	$187,228		$186,108		$184,456		$182,569		$181,061		$1,120		1	%	$6,167		3	%	$185,106		$176,442		$8,664		5	%
Return on average total assets	I/O	1.12	%	1.13	%	1.41	%	1.36	%	1.00	%	(1)	bps			12	bps			1.25	%	0.60	%	65	bps
Return on average total assets, Underlying (non-GAAP)	J/O	1.20		1.16		1.43		1.39		1.05		4	bps			15	bps			1.30		0.65		65	bps

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED

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


		QUARTERLY TRENDS																		FULL YEAR
												4Q21 Change												2021 Change
		4Q21		3Q21		2Q21		1Q21		4Q20		3Q21				4Q20				2021		2020		2020
												$/bps		%		$/bps		%						$/bps		%
Return on average total tangible assets and return on average total tangible assets, Underlying:
Average total assets (GAAP)	P	$187,228		$186,108		$184,456		$182,569		$181,061		$1,120		1	%	$6,167		3	%	$185,106		$176,442		$8,664		5	%
Less: Average goodwill (GAAP)		7,092		7,055		7,050		7,050		7,050		37		1		42		1		7,062		7,049		13		—
Less: Average other intangibles (GAAP)		56		52		53		57		60		4		8		(4)		(7)		54		64		(10)		(16)
Add: Average deferred tax liabilities related to goodwill (GAAP)		383		383		381		379		377		—		—		6		2		381		376		5		1
Average tangible assets	Q	$180,463		$179,384		$177,734		$175,841		$174,328		$1,079		1	%	$6,135		4	%	$178,371		$169,705		$8,666		5	%
Return on average total tangible assets	I/Q	1.17	%	1.17	%	1.46	%	1.41	%	1.04	%	—	bps			13	bps			1.30	%	0.62	%	68	bps
Return on average total tangible assets, Underlying (non-GAAP)	J/Q	1.25		1.21		1.48		1.44		1.10		4	bps			15	bps			1.34		0.67		67	bps
Tangible book value per common share:
Common shares - at period-end (GAAP)	R	422,137,197		426,199,576		426,083,143		425,930,159		427,209,831		(4,062,379)		(1	%)	(5,072,634)		(1	%)	422,137,197		427,209,831		(5,072,634)		(1	%)
Common stockholders' equity (GAAP)		$21,406		$21,409		$21,185		$20,688		$20,708		($3)		—		$698		3		$21,406		$20,708		$698		3
Less: Goodwill (GAAP)		7,116		7,065		7,050		7,050		7,050		51		1		66		1		7,116		7,050		66		1
Less: Other intangible assets (GAAP)		64		51		52		54		58		13		25		6		10		64		58		6		10
Add: Deferred tax liabilities related to goodwill (GAAP)		383		384		383		380		379		(1)		—		4		1		383		379		4		1
Tangible common equity	S	$14,609		$14,677		$14,466		$13,964		$13,979		($68)		—	%	$630		5	%	$14,609		$13,979		$630		5	%
Tangible book value per common share	S/R	$34.61		$34.44		$33.95		$32.79		$32.72		$0.17		—	%	$1.89		6	%	$34.61		$32.72		$1.89		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	424,697,880		426,086,717		425,948,706		425,953,716		427,074,822		(1,388,837)		—	%	(2,376,942)		(1	%)	425,669,451		427,062,537		(1,393,086)		—	%
Average common shares outstanding - diluted (GAAP)	U	426,868,106		427,840,964		427,561,572		427,880,530		428,881,252		(972,858)		—		(2,013,146)		—		427,435,818		428,157,780		(721,962)		—
Net income per average common share - basic (GAAP)	K/T	$1.17		$1.18		$1.45		$1.38		$0.99		($0.01)		(1)		$0.18		18		$5.18		$2.22		$2.96		133
Net income per average common share - diluted (GAAP)	K/U	1.17		1.18		1.44		1.37		0.99		(0.01)		(1)		0.18		18		5.16		2.22		2.94		132
Net income per average common share - basic, Underlying (non-GAAP)	L/T	1.26		1.22		1.47		1.41		1.05		0.04		3		0.21		20		5.37		2.42		2.95		122
Net income per average common share - diluted, Underlying (non-GAAP)	L/U	1.26		1.22		1.46		1.41		1.04		0.04		3		0.22		21		5.34		2.41		2.93		122
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		$—		—	%	$—		—	%	$1.56		$1.56		$—		—	%
Dividend payout ratio	V/(K/T)	33	%	33	%	27	%	28	%	39	%	— bps				(600) bps				30	%	70	%	(4,000) bps
Dividend payout ratio, Underlying (non-GAAP)	V/(L/T)	31		32		27		28		37		(100) bps				(600) bps				29		65		(3,600) bps

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED

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


	QUARTERLY TRENDS											FULL YEAR
						4Q21 Change								2021 Change
	4Q21	3Q21	2Q21	1Q21	4Q20	3Q21			4Q20			2021	2020	2020
						$	%		$	%				$/bps	%








Salaries and employee benefits, Underlying:
Salaries and employee benefits (GAAP)	$551	$509	$524	$548	$537	$42	8	%	$14	3	%	$2,132	$2,123	$9	—	%
Less: Notable items	5	(13)	—	—	18	18	138		(13)	(72)		(8)	45	(53)	(118)
Salaries and employee benefits, Underlying (non-GAAP)	$546	$522	$524	$548	$519	$24	5	%	$27	5	%	$2,140	$2,078	$62	3	%
Equipment and software, Underlying:
Equipment and software (GAAP)	$146	$157	$155	$152	$141	($11)	(7	%)	$5	4	%	$610	$565	$45	8	%
Less: Notable items	2	7	4	4	1	(5)	(71)		1	100		17	3	14	NM
Equipment and software, Underlying (non-GAAP)	$144	$150	$151	$148	$140	($6)	(4	%)	$4	3	%	$593	$562	$31	6	%
Outside services, Underlying:
Outside services (GAAP)	$175	$144	$137	$139	$148	$31	22	%	$27	18	%	$595	$553	$42	8	%
Less: Notable items	37	12	4	7	17	25	208		20	118		60	63	(3)	(5)
Outside services, Underlying (non-GAAP)	$138	$132	$133	$132	$131	$6	5	%	$7	5	%	$535	$490	$45	9	%
Occupancy, Underlying:
Occupancy (GAAP)	$86	$77	$82	$88	$84	$9	12	%	$2	2	%	$333	$331	$2	1	%
Less: Notable items	5	1	3	9	6	4	NM		(1)	(17)		18	14	4	29
Occupancy, Underlying (non-GAAP)	$81	$76	$79	$79	$78	$5	7	%	$3	4	%	$315	$317	($2)	(1	%)

Other operating expense, Underlying:
Other operating expense (GAAP)	$103	$124	$93	$91	$102	($21)	(17	%)	$1	1	%	$411	$419	($8)	(2	%)
Less: Notable items	2	16	—	—	—	(14)	(87)		2	100		18	—	18	100
Other operating expense, Underlying (non-GAAP)	$101	$108	$93	$91	$102	($7)	(6	%)	($1)	(1	%)	$393	$419	($26)	(6	%)

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS

(in millions, except ratio data)


		FOURTH QUARTER 2021							THIRD QUARTER 2021							SECOND 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	$279		$336		($85)	$530		$336		$274		($80)	$530		$286		$265		$97	$648
Less: Preferred stock dividends		—		—		32	32		—		—		26	26		—		—		32	32
Net income (loss) available to common stockholders	B	$279		$336		($117)	$498		$336		$274		($106)	$504		$286		$265		$65	$616
Return on average total tangible assets:
Average total assets (GAAP)		$76,077		$58,501		$52,650	$187,228		$75,070		$56,702		$54,336	$186,108		$75,600		$57,527		$51,329	$184,456
Less: Average goodwill (GAAP)		122		94		6,876	7,092		122		57		6,876	7,055		122		52		6,876	7,050
Average other intangibles (GAAP)		32		11		13	56		34		5		13	52		35		4		14	53
Add: Average deferred tax liabilities related to goodwill (GAAP)		4		1		378	383		4		2		377	383		4		1		376	381
Average tangible assets	C	$75,927		$58,397		$46,139	$180,463		$74,918		$56,642		$47,824	$179,384		$75,447		$57,472		$44,815	$177,734
Return on average total tangible assets	A/C	1.46	%	2.28	%	NM	1.17	%	1.78	%	1.92	%	NM	1.17	%	1.52	%	1.85	%	NM	1.46	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$737		$294		$30	$1,061		$749		$226		$36	$1,011		$751		$226		$14	$991
Net interest income (GAAP)		883		438		(195)	1,126		919		428		(202)	1,145		897		419		(192)	1,124
Noninterest income (GAAP)		274		293		27	594		315		168		31	514		283		178		24	485
Total revenue (GAAP)	E	$1,157		$731		($168)	$1,720		$1,234		$596		($171)	$1,659		$1,180		$597		($168)	$1,609
Efficiency ratio	D/E	63.68	%	40.16	%	NM	61.68	%	60.73	%	38.02	%	NM	60.92	%	63.62	%	37.86	%	NM	61.63	%


		FIRST QUARTER 2021							FOURTH QUARTER 2020

		Consumer Banking		Commercial Banking		Other	Consolidated		Consumer Banking		Commercial Banking		Other	Consolidated
Net income (loss) available to common stockholders:
Net income (loss)	A	$302		$211		$98	$611		$322		$221		($87)	$456
Less: Preferred stock dividends		—		—		23	23		—		—		32	32
Net income (loss) available to common stockholders	B	$302		$211		$75	$588		$322		$221		($119)	$424
Return on average total tangible assets:
Average total assets (GAAP)		$75,283		$57,738		$49,548	$182,569		$74,392		$58,212		$48,457	$181,061
Less: Average goodwill (GAAP)		122		52		6,876	7,050		122		52		6,876	7,050
Average other intangibles (GAAP)		37		5		15	57		39		5		16	60
Add: Average deferred tax liabilities related to goodwill (GAAP)		3		1		375	379		3		1		373	377
Average tangible assets	C	$75,127		$57,682		$43,032	$175,841		$74,234		$58,156		$41,938	$174,328
Return on average total tangible assets	A/C	1.63	%	1.48	%	NM	1.41	%	1.72	%	1.51	%	NM	1.04	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$750		$227		$41	$1,018		$749		$216		$47	$1,012
Net interest income (GAAP)		863		421		(167)	1,117		859		438		(168)	1,129
Noninterest income (GAAP)		351		170		21	542		375		182		21	578
Total revenue (GAAP)	E	$1,214		$591		($146)	$1,659		$1,234		$620		($147)	$1,707
Efficiency ratio	D/E	61.79	%	38.33	%	NM	61.35	%	60.75	%	34.94	%	NM	59.28	%

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS (CONTINUED)

(in millions, except ratio data)


		FULL YEAR
		2021							2020
		Consumer Banking		Commercial Banking		Other	Consolidated		Consumer Banking		Commercial Banking		Other	Consolidated
Net income (loss) available to common stockholders:
Net income (loss)	A	$1,203		$1,086		$30	$2,319		$1,285		$774		($1,002)	$1,057
Less: Preferred stock dividends		—		—		113	113		—		—		107	107
Net income (loss) available to common stockholders	B	$1,203		$1,086		($83)	$2,206		$1,285		$774		($1,109)	$950
Return on average total tangible assets:
Average total assets (GAAP)		$75,509		$57,617		$51,980	$185,106		$72,022		$60,839		$43,581	$176,442
Less: Average goodwill (GAAP)		122		64		6,876	7,062		122		51		6,876	7,049
Average other intangibles (GAAP)		35		6		13	54		41		6		17	64
Add: Average deferred tax liabilities related to goodwill (GAAP)		4		1		376	381		2		1		373	376
Average tangible assets	C	$75,356		$57,548		$45,467	$178,371		$71,861		$60,783		$37,061	$169,705
Return on average total tangible assets	A/C	1.60	%	1.89	%	NM	1.30	%	1.79	%	1.27	%	NM	0.62 %
Efficiency ratio:
Noninterest expense (GAAP)	D	$2,987		$973		$121	$4,081		$2,964		$860		$167	$3,991
Net interest income (GAAP)		3,562		1,706		(756)	4,512		3,311		1,643		(368)	4,586
Noninterest income (GAAP)		1,223		809		103	2,135		1,655		595		69	2,319
Total revenue (GAAP)	E	$4,785		$2,515		($653)	$6,647		$4,966		$2,238		($299)	$6,905
Efficiency ratio	D/E	62.42	%	38.68	%	NM	61.40	%	56.69	%	38.43	%	NM	57.80 %