Enhanced Investments - Financial Portal

Published: 2020-10-16 07:01:13 ET

EX-99.3 4 d163450dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

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Financial Supplement

Third Quarter 2020


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		8

Average Annualized Yields and Rates		9

Segment Financial Highlights		10

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																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																3Q20 Change																		2020 Change
	3Q20			2Q20			1Q20			4Q19			3Q19			2Q20						3Q19						2020			2019			2019
																$/bps			%			$/bps			%									$/bps			%
SELECTED OPERATING DATA
Total revenue	$	1,791		$	1,750		$	1,657		$	1,637		$	1,638		$	41			2	%	$	153			9	%	$	5,198		$	4,854		$	344			7	%
Noninterest expense		988			979			1,012			986			973			9			1			15			2			2,979			2,861			118			4

Profit before provision for credit losses		803			771			645			651			665			32			4			138			21			2,219			1,993			226			11
Provision for credit losses		428			464			600			110			101			(36	)		(8	)		327			NM			1,492			283			1,209			NM
NET INCOME		314			253			34			450			449			61			24			(135	)		(30	)		601			1,341			(740	)		(55	)
Net income, Underlying¹		338			263			59			454			453			75			29			(115	)		(25	)		660			1,354			(694	)		(51	)
Net income available to common stockholders		289			225			12			427			432			64			28			(143	)		(33	)		526			1,291			(765	)		(59	)
Net income available to common stockholders, Underlying¹		313			235			37			431			436			78			33			(123	)		(28	)		585			1,304			(719	)		(55	)
PER COMMON SHARE DATA
Basic earnings	$	0.68		$	0.53		$	0.03		$	0.98		$	0.97		$	0.15			28	%		($ 0.29	)		(30	%)	$	1.23		$	2.84			($ 1.61	)		(57	%)
Diluted earnings		0.68			0.53			0.03			0.98			0.97			0.15			28			(0.29	)		(30	)		1.23			2.83			(1.60	)		(57	)
Basic earnings, Underlying¹		0.73			0.55			0.09			0.99			0.98			0.18			33			(0.25	)		(26	)		1.37			2.87			(1.50	)		(52	)
Diluted earnings, Underlying¹		0.73			0.55			0.09			0.99			0.98			0.18			33			(0.25	)		(26	)		1.37			2.86			(1.49	)		(52	)
Cash dividends declared and paid per common share		0.39			0.39			0.39			0.36			0.36			—			—			0.03			8			1.17			1.00			0.17			17
Book value per common share		48.01			47.92			47.78			47.63			46.67			0.09			—			1.34			3			48.01			46.67			1.34			3
Tangible book value per common share		32.24			32.13			31.97			32.08			31.48			0.11			—			0.76			2			32.24			31.48			0.76			2
Dividend payout ratio		58	%		74	%		1,398	%		37	%		37	%		(1,617) bps						2,051 bps						95	%		35	%		5,970 bps
Dividend payout ratio, Underlying¹		53			71			451			36			37			(1,742) bps						1,659 bps						85			35			5,062 bps
COMMON SHARES OUTSTANDING
Average: Basic		426,846,096			426,613,053			427,718,421			434,684,606			445,703,987			233,043			—	%		(18,857,891	)		(4	%)		427,058,412			454,802,186			(27,743,774	)		(6	%)
Diluted		427,992,349			427,566,920			429,388,855			436,500,829			447,134,595			425,429			—			(19,142,246	)		(4	)		428,142,358			456,218,755			(28,076,397	)		(6	)
Common shares at period-end		427,073,084			426,824,594			426,586,533			433,121,083			443,913,525			248,490			—			(16,840,441	)		(4	)		427,073,084			443,913,525			(16,840,441	)		(4	)

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																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																3Q20 Change																		2020 Change
	3Q20			2Q20			1Q20			4Q19			3Q19			2Q20						3Q19						2020			2019			2019
																$/bps			%			$/bps			%									$/bps			%
FINANCIAL RATIOS
Net interest margin		2.82	%		2.87	%		3.09	%		3.04	%		3.10	%		(5	) bps					(28	) bps					2.93	%		3.18	%		(25	) bps
Net interest margin, FTE¹		2.83			2.88			3.10			3.06			3.12			(5	) bps					(29	) bps					2.93			3.19			(26	) bps
Return on average common equity		5.60			4.44			0.24			8.30			8.35			116	bps					(275	) bps					3.45			8.50			(505	) bps
Return on average common equity, Underlying²		6.05			4.63			0.74			8.36			8.45			142	bps					(240	) bps					3.83			8.59			(476	) bps
Return on average tangible common equity		8.33			6.62			0.36			12.39			12.44			171	bps					(411	) bps					5.15			12.72			(757	) bps
Return on average tangible common equity, Underlying²		9.00			6.90			1.10			12.49			12.58			210	bps					(358	) bps					5.71			12.86			(715	) bps
Return on average total assets		0.70			0.57			0.08			1.08			1.10			13	bps					(40	) bps					0.46			1.11			(65	) bps
Return on average total assets, Underlying²		0.76			0.59			0.14			1.09			1.11			17	bps					(35	) bps					0.50			1.12			(62	) bps
Return on average total tangible assets		0.73			0.59			0.09			1.13			1.15			14	bps					(42	) bps					0.48			1.16			(68	) bps
Return on average total tangible assets, Underlying²		0.79			0.61			0.15			1.14			1.16			18	bps					(37	) bps					0.52			1.17			(65	) bps
Effective income tax rate		16.10			17.69			24.13			16.76			20.46			(159	) bps					(436	) bps					17.27			21.58			(431	) bps
Effective income tax rate, Underlying²		16.79			19.36			24.52			21.52			22.29			(257	) bps					(550	) bps					18.57			22.20			(363	) bps
Efficiency ratio		55.18			55.91			61.10			60.28			59.40			(73	) bps					(422	) bps					57.31			58.94			(163	) bps
Efficiency ratio, Underlying²		53.44			54.85			59.08			58.02			58.22			(141	) bps					(478	) bps					55.72			58.30			(258	) bps
Noninterest income as a % of total revenue		37	%		34	%		30	%		30	%		30	%		300	bps					700	bps					33	%		29	%		400	bps
CAPITAL RATIOS - PERIOD-END (PRELIMINARY)
CET1 capital ratio		9.8	%		9.6	%		9.4	%		10.0	%		10.3	%
Tier 1 capital ratio		11.2			10.9			10.5			11.1			11.1
Total capital ratio		13.3			13.1			12.5			13.0			13.0
Tier 1 leverage ratio		9.5			9.3			9.6			10.0			9.9
Tangible common equity ratio		8.0			7.9			8.0			8.7			8.9
SELECTED BALANCE SHEET DATA
Loans-to-deposits ratio (period-end balances)		86.81	%		87.53	%		95.54	%		95.03	%		94.52	%		(72	) bps					(771	) bps					86.81	%		94.52	%		(771	) bps
Loans-to-deposits ratio (average balances)		88.36			90.93			95.60			94.63			94.62			(257	) bps					(626	) bps					91.47			95.96			(449	) bps
Full-time equivalent colleagues		17,930			18,312			17,863			17,997			18,116			(382	)		(2	)		(186	)		(1	)		17,930			18,116			(186	)		(1	)

¹	Net 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.

²	These 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																						FOR THE NINE MONTHS ENDED SEPTEMBER 30,
											3Q20 Change																2020 Change
	3Q20		2Q20		1Q20		4Q19		3Q19		2Q20						3Q19						2020		2019		2019
											$			%			$			%							$			%
INTEREST INCOME
Interest and fees on loans and leases	$	1,120	$	1,192	$	1,302	$	1,312	$	1,356	($	72	)		(6	%)	($	236	)		(17	%)	$	3,614	$	4,129		($ 515	)		(12	%)
Interest and fees on loans held for sale		21		20		15		18		19		1			5			2			11			56		45		11			24
Interest and fees on other loans held for sale		16		7		9		5		2		9			129			14			NM			32		8		24			NM
Investment securities		121		130		147		159		153		(9	)		(7	)		(32	)		(21	)		398		483		(85	)		(18	)
Interest-bearing deposits in banks		2		1		5		7		8		1			100			(6	)		(75	)		8		23		(15	)		(65	)

Total interest income		1,280		1,350		1,478		1,501		1,538		(70	)		(5	)		(258	)		(17	)		4,108		4,688		(580	)		(12	)

INTEREST EXPENSE
Deposits		89		124		227		263		297		(35	)		(28	)		(208	)		(70	)		440		892		(452	)		(51	)
Short-term borrowed funds		—		—		1		2		2		—			—			(2	)		(100	)		1		8		(7	)		(88	)
Long-term borrowed funds		54		66		90		93		94		(12	)		(18	)		(40	)		(43	)		210		317		(107	)		(34	)

Total interest expense		143		190		318		358		393		(47	)		(25	)		(250	)		(64	)		651		1,217		(566	)		(47	)

Net interest income		1,137		1,160		1,160		1,143		1,145		(23	)		(2	)		(8	)		(1	)		3,457		3,471		(14	)		—

NONINTEREST INCOME
Service charges and fees		97		84		118		128		128		13			15			(31	)		(24	)		299		377		(78	)		(21	)
Mortgage banking fees		287		276		159		80		117		11			4			170			145			722		222		500			225
Card fees		57		48		56		64		67		9			19			(10	)		(15	)		161		190		(29	)		(15	)
Capital markets fees		58		61		43		66		39		(3	)		(5	)		19			49			162		150		12			8
Trust and investment services fees		53		45		53		52		50		8			18			3			6			151		150		1			1
Foreign exchange and interest rate products		27		34		24		49		35		(7	)		(21	)		(8	)		(23	)		85		106		(21	)		(20	)
Letter of credit and loan fees		37		31		34		35		34		6			19			3			9			102		100		2			2
Securities gains, net		1		3		—		4		3		(2	)		(67	)		(2	)		(67	)		4		15		(11	)		(73	)
Other income		37		8		10		16		20		29			NM			17			85			55		73		(18	)		(25	)

Total noninterest income		654		590		497		494		493		64			11			161			33			1,741		1,383		358			26

TOTAL REVENUE		1,791		1,750		1,657		1,637		1,638		41			2			153			9			5,198		4,854		344			7
Provision for credit losses		428		464		600		110		101		(36	)		(8	)		327			NM			1,492		283		1,209			NM
NONINTEREST EXPENSE
Salaries and employee benefits		524		513		549		502		508		11			2			16			3			1,586		1,524		62			4
Equipment and software expense		149		142		133		133		130		7			5			19			15			424		381		43			11
Outside services		139		131		135		142		128		8			6			11			9			405		356		49			14
Occupancy		81		82		84		88		80		(1	)		(1	)		1			1			247		245		2			1
Other operating expense		95		111		111		121		127		(16	)		(14	)		(32	)		(25	)		317		355		(38	)		(11	)

Total noninterest expense		988		979		1,012		986		973		9			1			15			2			2,979		2,861		118			4

Income before income tax expense		375		307		45		541		564		68			22			(189	)		(34	)		727		1,710		(983	)		(57	)
Income tax expense		61		54		11		91		115		7			13			(54	)		(47	)		126		369		(243	)		(66	)

Net income	$	314	$	253	$	34	$	450	$	449	$	61			24	%	($	135	)		(30	%)	$	601	$	1,341	($	740	)		(55	%)

Net income, Underlying¹	$	338	$	263	$	59	$	454	$	453	$	75			29	%	($	115	)		(25	%)	$	660	$	1,354	($	694	)		(51	%)

Net income available to common stockholders	$	289	$	225	$	12	$	427	$	432	$	64			28	%	($	143	)		(33	%)	$	526	$	1,291	($	765	)		(59	%)

Net income available to common stockholders, Underlying¹	$	313	$	235	$	37	$	431	$	436	$	78			33	%	($	123	)		(28	%)	$	585	$	1,304	($	719	)		(55	%)

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															SEPTEMBER 30, 2020 CHANGE
	Sept 30, 2020			June 30, 2020			Mar 31, 2020			Dec 31, 2019			Sept 30, 2019			June 30, 2020						September 30, 2019
																$			%			$			%
ASSETS
Cash and due from banks	$	904		$	1,088		$	1,155		$	1,175		$	1,638			($ 184	)		(17	%)		($ 734	)		(45	%)
Interest-bearing cash and due from banks		8,312			6,358			2,903			2,211			2,204			1,954			31			6,108			NM
Interest-bearing deposits in banks		328			475			280			297			158			(147	)		(31	)		170			108
Debt securities available for sale, at fair value		22,884			22,144			22,307			20,613			21,502			740			3			1,382			6
Debt securities held to maturity		2,578			2,856			3,071			3,202			3,319			(278	)		(10	)		(741	)		(22	)
Equity securities, at fair value		57			50			47			47			47			7			14			10			21
Equity securities, at cost		605			607			927			807			734			(2	)		—			(129	)		(18	)
Loans held for sale, at fair value		3,587			3,631			2,911			1,946			1,993			(44	)		(1	)		1,594			80
Other loans held for sale		127			1,362			350			1,384			22			(1,235	)		(91	)		105			NM
Loans and leases		124,071			125,713			127,528			119,088			117,880			(1,642	)		(1	)		6,191			5
Less: Allowance for loan and lease losses		(2,542	)		(2,448	)		(2,171	)		(1,252	)		(1,263	)		(94	)		(4	)		(1,279	)		(101	)

Net loans and leases		121,529			123,265			125,357			117,836			116,617			(1,736	)		(1)			4,912			4
Derivative assets		2,030			2,069			1,968			807			1,027			(39	)		(2	)		1,003			98
Premises and equipment		747			751			746			761			747			(4	)		(1	)		—			—
Bank-owned life insurance		1,751			1,739			1,736			1,725			1,720			12			1			31			2
Goodwill		7,050			7,050			7,050			7,044			7,044			—			—			6			—
Due from broker		19			51			—			—			257			(32	)		(63	)		(238	)		(93	)
Other assets		6,720			6,378			5,911			5,878			5,333			342			5			1,387			26

TOTAL ASSETS	$	179,228		$	179,874		$	176,719		$	165,733		$	164,362		($	646	)		— %		$	14,866			9	%

LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits:
Noninterest-bearing	$	41,249		$	40,545		$	32,398		$	29,233		$	29,939		$	704			2	%	$	11,310			38	%
Interest-bearing		101,672			103,073			101,077			96,080			94,775			(1,401	)		(1	)		6,897			7

Total deposits		142,921			143,618			133,475			125,313			124,714			(697	)		—			18,207			15
Short-term borrowed funds		252			255			1,059			274			1,077			(3	)		(1	)		(825	)		(77	)
Derivative liabilities		100			198			234			120			161			(98	)		(49	)		(61	)		(38	)
Deferred taxes, net		638			709			782			866			752			(71	)		(10	)		(114	)		(15	)
Long-term borrowed funds:
FHLB advances		19			6			8,007			5,008			3,007			13			217			(2,988	)		(99	)
Senior debt		7,504			7,519			6,775			7,382			8,143			(15	)		—			(639	)		(8	)
Subordinated debt and other debt		1,586			1,677			1,655			1,657			1,656			(91	)		(5	)		(70	)		(4	)

Total long-term borrowed funds		9,109			9,202			16,437			14,047			12,806			(93	)		(1	)		(3,697	)		(29	)
Due to broker		—			155			—			—			206			(155	)		(100	)		(206	)		(100	)
Other liabilities		3,739			3,319			2,782			2,912			2,795			420			13			944			34

TOTAL LIABILITIES		156,759			157,456			154,769			143,532			142,511			(697	)		—			14,248			10
STOCKHOLDERS’ EQUITY
Preferred stock:
$25.00 par value, 100,000,000 shares authorized for each of the periods presented		1,965			1,965			1,570			1,570			1,133			—			—			832			73
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		18,922			18,908			18,901			18,891			18,876			14			—			46			—
Retained earnings		6,189			6,068			6,011			6,498			6,229			121			2			(40	)		(1	)
Treasury stock, at cost		(4,623	)		(4,623	)		(4,623	)		(4,353	)		(3,953	)		—			—			(670	)		(17	)
Accumulated other comprehensive income (loss)		10			94			85			(411	)		(440	)		(84	)		(89	)		450			NM

TOTAL STOCKHOLDERS’ EQUITY		22,469			22,418			21,950			22,201			21,851			51			—			618			3

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	179,228		$	179,874		$	176,719		$	165,733		$	164,362		($	646	)		—	%	$	14,866			9	%

Memo: Total tangible common equity	$	13,771		$	13,716		$	13,639		$	13,893		$	13,976		$	55			—	%	($	205	)		(1	%)

LOANS AND DEPOSITS

(in millions)


PERIOD-END BALANCES	AS OF										SEPTEMBER 30, 2020 CHANGE
	Sept 30, 2020		June 30, 2020		Mar 31, 2020		Dec 31, 2019		Sept 30, 2019		June 30, 2020						September 30, 2019
											$			%			$			%
LOANS AND LEASES
Commercial	$	45,185	$	48,017	$	49,092	$	41,479	$	41,356	($	2,832	)		(6	%)	$	3,829			9	%
Commercial real estate		14,889		14,485		14,502		13,522		12,820		404			3			2,069			16
Leases		2,288		2,428		2,438		2,537		2,557		(140	)		(6	)		(269	)		(11	)

Total commercial loans and leases		62,362		64,930		66,032		57,538		56,733		(2,568	)		(4	)		5,629			10

Residential mortgages		19,633		19,245		18,721		19,083		19,699		388			2			(66	)		—
Home equity		12,322		12,541		12,992		13,154		13,423		(219	)		(2	)		(1,101	)		(8	)
Automobile		12,035		12,028		12,157		12,120		12,070		7			—			(35	)		—
Education		11,631		10,591		10,887		10,347		9,729		1,040			10			1,902			20
Other retail		6,088		6,378		6,739		6,846		6,226		(290	)		(5	)		(138	)		(2	)

Total retail loans		61,709		60,783		61,496		61,550		61,147		926			2			562			1

Total loans and leases	$	124,071	$	125,713	$	127,528	$	119,088	$	117,880	($	1,642	)		(1	%)	$	6,191			5	%

Loans held for sale, at fair value		3,587		3,631		2,911		1,946		1,993		(44	)		(1	)		1,594			80
Other loans held for sale		127		1,362		350		1,384		22		(1,235	)		(91	)		105			NM

Loans and leases and loans held for sale	$	127,785	$	130,706	$	130,789	$	122,418	$	119,895	($	2,921	)		(2	%)	$	7,890			7	%


DEPOSITS
Demand	$	41,249	$	40,545	$	32,398	$	29,233	$	29,939	$	704			2	%	$	11,310			38	%
Checking with interest		27,141		27,200		25,358		24,840		24,403		(59	)		—			2,738			11
Regular savings		17,237		16,665		14,702		13,779		13,479		572			3			3,758			28
Money market accounts		46,400		44,965		42,972		38,725		36,826		1,435			3			9,574			26
Term deposits		10,894		14,243		18,045		18,736		20,067		(3,349	)		(24	)		(9,173	)		(46	)

Total deposits	$	142,921	$	143,618	$	133,475	$	125,313	$	124,714	($	697	)		—	%	$	18,207			15	%

AVERAGE BALANCE SHEETS

(in millions)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																3Q20 Change																		2020 Change
	3Q20			2Q20			1Q20			4Q19			3Q19			2Q20						3Q19						2020			2019			2019
																$			%			$			%									$			%
ASSETS
Interest-bearing cash and due from banks and deposits in banks	$	6,250		$	5,231		$	1,859		$	1,970		$	1,474		$	1,019			19	%	$	4,776			NM		$	4,453		$	1,400		$	3,053			218	%

Taxable investment securities		24,654			25,180			25,339			25,305			25,635			(526	)		(2	)		(981	)		(4	)		25,056			25,466			(410	)		(2	)
Non-taxable investment securities		4			4			4			5			5			—			—			(1	)		(20	)		4			5			(1	)		(20	)

Total investment securities		24,658			25,184			25,343			25,310			25,640			(526	)		(2	)		(982	)		(4	)		25,060			25,471			(411	)		(2	)

Investment securities and interest-bearing deposits		30,908			30,415			27,202			27,280			27,114			493			2			3,794			14			29,513			26,871			2,642			10

Commercial		46,844			50,443			43,152			42,012			41,476			(3,599	)		(7	)		5,368			13			46,813			41,597			5,216			13
Commercial real estate		14,644			14,540			13,876			13,103			12,892			104			1			1,752			14			14,354			13,179			1,175			9
Leases		2,373			2,426			2,482			2,546			2,615			(53	)		(2	)		(242	)		(9	)		2,427			2,744			(317	)		(12	)

Total commercial loans and leases		63,861			67,409			59,510			57,661			56,983			(3,548	)		(5	)		6,878			12			63,594			57,520			6,074			11

Residential mortgages		19,427			18,872			18,866			19,495			19,405			555			3			22			—			19,056			19,245			(189	)		(1	)
Home equity		12,416			12,736			13,042			13,265			13,501			(320	)		(3	)		(1,085	)		(8	)		12,730			13,774			(1,044	)		(8	)
Automobile		12,019			11,998			12,173			12,099			12,036			21			—			(17	)		—			12,063			12,030			33			—
Education		10,929			11,183			10,610			9,888			9,459			(254	)		(2	)		1,470			16			10,908			9,256			1,652			18
Other retail		6,260			6,557			6,854			6,497			5,873			(297	)		(5	)		387			7			6,556			5,736			820			14

Total retail loans		61,051			61,346			61,545			61,244			60,274			(295	)		—			777			1			61,313			60,041			1,272			2

Total loans and leases		124,912			128,755			121,055			118,905			117,257			(3,843	)		(3	)		7,655			7			124,907			117,561			7,346			6
Loans held for sale, at fair value		3,295			2,710			1,890			2,209			1,970			585			22			1,325			67			2,635			1,514			1,121			74
Other loans held for sale		1,061			510			799			517			134			551			108			927			NM			791			161			630			NM

Total interest-earning assets		160,176			162,390			150,946			148,911			146,475			(2,214	)		(1	)		13,701			9			157,846			146,107			11,739			8
Allowance for loan and lease losses		(2,444	)		(2,172	)		(1,708	)		(1,260	)		(1,226	)		(272	)		(13	)		(1,218	)		(99	)		(2,109	)		(1,239	)		(870	)		(70	)
Goodwill		7,050			7,050			7,046			7,044			7,044			—			—			6			—			7,049			7,034			15			—
Other noninterest-earning assets		12,893			12,525			10,893			9,951			9,817			368			3			3,076			31			12,106			9,442			2,664			28

TOTAL ASSETS	$	177,675		$	179,793		$	167,177		$	164,646		$	162,110		($	2,118	)		(1	%)	$	15,565			10	%	$	174,892		$	161,344		$	13,548			8	%

LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Checking with interest	$	26,638		$	26,312		$	24,612		$	23,545		$	23,422		$	326			1	%	$	3,216			14	%	$	25,857		$	23,444		$	2,413			10	%
Money market accounts		45,187			45,187			39,839			38,809			37,161			—			—			8,026			22			43,411			35,873			7,538			21
Regular savings		16,902			15,883			14,201			13,582			13,442			1,019			6			3,460			26			15,667			13,134			2,533			19
Term deposits		12,032			16,470			18,616			19,788			20,951			(4,438	)		(27	)		(8,919	)		(43	)		15,692			21,456			(5,764	)		(27	)

Total interest-bearing deposits		100,759			103,852			97,268			95,724			94,976			(3,093	)		(3	)		5,783			6			100,627			93,907			6,720			7
Short-term borrowed funds		240			222			644			504			600			18			8			(360	)		(60	)		368			720			(352	)		(49	)
FHLB advances		6			2,595			5,138			3,259			2,478			(2,589	)		(100	)		(2,472	)		(100	)		2,570			3,764			(1,194	)		(32	)
Senior debt		7,515			7,499			7,263			7,914			8,000			16			—			(485	)		(6	)		7,426			7,657			(231	)		(3	)
Subordinated debt and other debt		1,675			1,661			1,656			1,657			1,656			14			1			19			1			1,664			1,655			9			1

Total long-term borrowed funds		9,196			11,755			14,057			12,830			12,134			(2,559	)		(22	)		(2,938	)		(24	)		11,660			13,076			(1,416	)		(11	)

Total borrowed funds		9,436			11,977			14,701			13,334			12,734			(2,541	)		(21	)		(3,298	)		(26	)		12,028			13,796			(1,768	)		(13	)

Total interest-bearing liabilities		110,195			115,829			111,969			109,058			107,710			(5,634	)		(5	)		2,485			2			112,655			107,703			4,952			5
Total demand deposits		40,608			37,745			29,362			29,928			28,945			2,863			8			11,663			40			35,922			28,601			7,321			26
Other liabilities		4,374			4,086			4,053			3,819			3,789			288			7			585			15			4,172			3,637			535			15

TOTAL LIABILITIES		155,177			157,660			145,384			142,805			140,444			(2,483	)		(2	)		14,733			10			152,749			139,941			12,808			9

STOCKHOLDERS’ EQUITY		22,498			22,133			21,793			21,841			21,666			365			2			832			4			22,143			21,403			740			3

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	177,675		$	179,793		$	167,177		$	164,646		$	162,110		($	2,118	)		(1	%)	$	15,565			10	%	$	174,892		$	161,344		$	13,548			8	%

Memo: Total loans and leases, including loans held for sale	$	129,268		$	131,975		$	123,744		$	121,631		$	119,361		($	2,707	)		(2	%)	$	9,907			8	%	$	128,333		$	119,236		$	9,097			8	%
Total deposits (interest-bearing and demand)	$	141,367		$	141,597		$	126,630		$	125,652		$	123,921			($ 230	)		—	%	$	17,446			14	%	$	136,549		$	122,508		$	14,041			11	%
Total average tangible common equity	$	13,797		$	13,706		$	13,484		$	13,660		$	13,788		$	91			1	%	$	9			—	%	$	13,662		$	13,566		$	96			1	%

AVERAGE ANNUALIZED YIELDS AND RATES

(in millions, except rates)


	QUARTERLY TRENDS																									FOR THE NINE MONTHS ENDED SEPTEMBER 30,
	3Q20					2Q20					1Q20					4Q19					3Q19					2020					2019
	Rate			Income/Expense		Rate			Income/Expense		Rate			Income/Expense		Rate			Income/Expense		Rate			Income/Expense		Rate			Income/Expense		Rate			Income/Expense
INTEREST-EARNING ASSETS
Interest-bearing cash and due from banks and deposits in banks		0.10	%	$	2		0.09	%	$	1		1.12	%	$	5		1.49	%	$	7		2.09	%	$	8		0.24	%	$	8		2.15	%	$	23

Taxable investment securities		2.07			121		2.15			130		2.32			147		2.47			159		2.38			153		2.18			398		2.53			483
Non-taxable investment securities		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—

Total investment securities		2.07			121		2.15			130		2.32			147		2.47			159		2.38			153		2.18			398		2.53			483

Investment securities and interest-bearing deposits					123					131					152					166					161					406					506

Commercial		3.20			383		3.23			412		3.82			417		3.95			424		4.17			442		3.40			1,212		4.35			1,373
Commercial real estate		2.57			96		2.87			106		3.96			139		4.26			142		4.70			155		3.12			341		4.86			486
Leases		2.65			16		2.75			16		2.83			18		2.77			18		2.85			19		2.74			50		2.86			59

Total commercial loans and leases		3.03			495		3.14			534		3.81			574		3.97			584		4.23			616		3.31			1,603		4.40			1,918

Residential mortgages		3.15			153		3.19			150		3.47			164		3.40			165		3.53			171		3.27			467		3.61			522
Home equity		3.21			100		3.50			111		4.69			152		4.73			159		5.24			178		3.81			363		5.26			541
Automobile		4.23			128		4.33			129		4.34			131		4.32			132		4.25			129		4.30			388		4.16			374
Education		4.74			130		5.21			145		5.64			149		5.76			143		5.89			141		5.19			424		5.94			412
Other retail		7.22			114		7.52			123		7.77			132		7.83			129		8.21			121		7.51			369		8.43			362

Total retail loans		4.08			625		4.31			658		4.75			728		4.72			728		4.88			740		4.38			2,011		4.92			2,211

Total loans and leases		3.54			1,120		3.69			1,192		4.29			1,302		4.36			1,312		4.56			1,356		3.84			3,614		4.67			4,129
Loans held for sale, at fair value		2.60			21		2.85			20		3.28			15		3.38			18		3.71			19		2.85			56		3.92			45
Other loans held for sale		1.56			16		4.66			7		4.31			9		3.89			5		6.42			2		3.15			32		6.41			8

Total interest-earning assets		3.15			1,280		3.33			1,350		3.91			1,478		3.98			1,501		4.15			1,538		3.45			4,108		4.26			4,688
INTEREST-BEARING LIABILITIES
Checking with interest		0.13			8		0.17			11		0.60			37		0.71			42		0.88			52		0.29			56		0.92			161
Money market accounts		0.28			33		0.35			39		0.94			93		1.12			110		1.24			116		0.51			165		1.27			340
Regular savings		0.24			10		0.39			15		0.51			18		0.52			17		0.59			20		0.37			43		0.59			58
Term deposits		1.25			38		1.44			59		1.70			79		1.88			94		2.05			109		1.49			176		2.07			333

Total interest-bearing deposits		0.35			89		0.48			124		0.94			227		1.09			263		1.24			297		0.58			440		1.27			892
Short-term borrowed funds		0.13			—		0.29			—		0.76			1		1.07			2		1.43			2		0.53			1		1.56			8
FHLB advances		1.42			—		0.86			6		1.87			24		1.98			16		1.92			12		1.53			30		2.51			72
Senior debt		1.84			35		2.25			42		2.69			49		3.02			60		3.21			65		2.25			126		3.38			194
Subordinated debt and other debt		4.67			19		4.22			18		4.13			17		4.20			17		4.13			17		4.34			54		4.09			51

Total long-term borrowed funds		2.35			54		2.22			66		2.56			90		2.91			93		3.07			94		2.39			210		3.22			317

Total borrowed funds		2.30			54		2.18			66		2.48			91		2.84			95		3.00			96		2.33			211		3.13			325

Total interest-bearing liabilities		0.52			143		0.66			190		1.14			318		1.30			358		1.45			393		0.77			651		1.51			1,217
INTEREST RATE SPREAD		2.63					2.67					2.77					2.68					2.70					2.68					2.75

NET INTEREST MARGIN AND NET INTEREST INCOME		2.82	%	$	1,137		2.87	%	$	1,160		3.09	%	$	1,160		3.04	%	$	1,143		3.10	%	$	1,145		2.93	%	$	3,457		3.18	%	$	3,471

NET INTEREST MARGIN AND NET INTEREST INCOME, FTE¹		2.83	%	$	1,140		2.88	%	$	1,163		3.10	%	$	1,164		3.06	%	$	1,147		3.12	%	$	1,150		2.93	%	$	3,467		3.19	%	$	3,488
Memo: Total deposit costs		0.25	%	$	89		0.35	%	$	124		0.72	%	$	227		0.83	%	$	263		0.95	%	$	297		0.43	%	$	440		0.97	%	$	892

¹	Net 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.

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING

(in millions, except ratio data)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
CONSUMER BANKING																3Q20 Change																		2020 Change
	3Q20			2Q20			1Q20			4Q19			3Q19			2Q20						3Q19						2020			2019			2019
																$/bps			%			$/bps			%									$/bps		%
Net interest income	$	845		$	814		$	793		$	796		$	799		$	31			4	%	$	46			6	%	$	2,452		$	2,386		$	66		3	%
Noninterest income		495			428			357			296			336			67			16			159			47			1,280			860			420		49

Total revenue		1,340			1,242			1,150			1,092			1,135			98			8			205			18			3,732			3,246			486		15
Noninterest expense		742			735			738			718			718			7			1			24			3			2,215			2,133			82		4

Profit before provision for credit losses		598			507			412			374			417			91			18			181			43			1,517			1,113			404		36
Provision for credit losses		55			80			97			97			83			(25	)		(31	)		(28	)		(34	)		232			228			4		2

Income before income tax expense		543			427			315			277			334			116			27			209			63			1,285			885			400		45
Income tax expense		136			107			79			68			83			29			27			53			64			322			219			103		47

Net income	$	407		$	320		$	236		$	209		$	251		$	87			27	%	$	156			62	%	$	963		$	666		$	297		45	%

AVERAGE BALANCES
Total assets	$	73,605		$	71,634		$	68,415		$	68,069		$	66,365		$	1,971			3	%	$	7,240			11	%	$	71,227		$	65,624		$	5,603		9	%
Total loans and leases¹		69,719			68,205			65,343			65,157			63,553			1,514			2			6,166			10			67,763			62,803			4,960		8
Deposits		94,212			91,648			85,228			85,477			85,595			2,564			3			8,617			10			90,377			84,619			5,758		7
Interest-earning assets		69,925			68,256			65,393			65,208			63,605			1,669			2			6,320			10			67,866			62,856			5,010		8
KEY METRICS
Net interest margin		4.81	%		4.80	%		4.88	%		4.85	%		4.99	%		1 bps						(18) bps						4.83	%		5.08	%		(25) bps
Efficiency ratio		55.35			59.19			64.16			65.74			63.28			(384) bps						(793) bps						59.34			65.71			(637) bps
Loans-to-deposits ratio (period-end balances)		70.61			69.17			72.94			74.15			73.61			144 bps						(300) bps						70.61			73.61			(300) bps
Loans-to-deposits ratio (average balances)		69.88			71.59			74.07			73.37			72.11			(171) bps						(223) bps						71.77			72.62			(85) bps
Return on average total tangible assets		2.21			1.80			1.39			1.22			1.50			41 bps						71 bps						1.81			1.36			45 bps

¹	Includes loans held for sale.

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																3Q20 Change																		2020 Change
	3Q20			2Q20			1Q20			4Q19			3Q19			2Q20						3Q19						2020			2019			2019
																$/bps			%			$/bps			%									$/bps			%
MORTGAGE BANKING FEES
Production revenue	$	275		$	271		$	136		$	61		$	80		$	4			1	%	$	195			244	%	$	682		$	160		$	522			NM
Mortgage servicing revenue		2			9			17			16			12			(7	)		(78	)		(10	)		(83	)		28			35			(7	)		(20	)
MSR valuation changes, net of hedge impact		10			(4	)		6			4			25			14			NM			(15	)		(60	)		12			27			(15	)		(56	)

Total mortgage banking fees	$	287		$	276		$	159		$	81		$	117		$	11			4	%	$	170			145	%	$	722		$	222		$	500			225	%

Gain on sale of secondary originations		3.04	%		3.09	%		2.36	%		0.98	%		1.40	%		(5	) bps					164 bps						2.89	%		1.28	%		161 bps

RESIDENTIAL REAL ESTATE ORIGINATIONS
Retail	$	4,300		$	3,882		$	2,523		$	3,196		$	2,771		$	418			11	%	$	1,529			55	%	$	10,705		$	6,199		$	4,506			73	%
Third Party		6,811			7,388			4,813			5,750			5,080			(577	)		(8	)		1,731			34			19,012			11,261			7,751			69

Total	$	11,111		$	11,270		$	7,336		$	8,946		$	7,851		($	159	)		(1	%)	$	3,260			42	%	$	29,717		$	17,460		$	12,257			70	%

Originated for sale		82	%		81	%		83	%		80	%		80	%		100	bps					200	bps					82	%		80	%		200	bps
Originated for investment		18			19			17			20			20			(100	)bps					(200	)bps					18			20			(200	)bps

Total		100	%		100	%		100	%		100	%		100	%														100	%		100	%

MORTGAGE SERVICING INFORMATION (UPB)
Loans serviced for others	$	80,700		$	79,942		$	79,157		$	77,526		$	74,610		$	758			1	%	$	6,090			8	%	$	80,700		$	74,610		$	6,090			8	%
Owned loans serviced		22,193			21,642			21,057			20,831			19,969			551			3			2,224			11			22,193			19,969			2,224			11

Total	$	102,893		$	101,584		$	100,214		$	98,357		$	94,579		$	1,309			1	%	$	8,314			9	%	$	102,893		$	94,579		$	8,314			9	%

MSR CARRYING VALUE¹
MSR at fair value	$	606		$	568		$	577		$	642		$	510		$	38			7	%	$	96			19	%	$	606		$	510		$	96			19	%
MSR at lower of cost or market		—			—			—			182			177			—			—			(177	)		(100	)		—			177			(177	)		(100	)

Total	$	606		$	568		$	577		$	824		$	687		$	38			7	%	($	81	)		(12	%)	$	606		$	687		($	81	)		(12	%)

¹	Beginning in the first quarter of 2020, mortgage servicing rights previously accounted for at lower of cost or market are now accounted for at fair value.

SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING

(in millions, except ratio data)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
COMMERCIAL BANKING																3Q20 Change																		2020 Change
	3Q20			2Q20			1Q20			4Q19			3Q19			2Q20						3Q19						2020			2019			2019
																$/bps			%			$/bps			%									$/bps			%
Net interest income	$	421		$	419		$	365		$	363		$	360		$	2			—	%	$	61			17	%	$	1,205		$	1,103		$	102			9	%
Noninterest income		144			144			125			175			133			—			—			11			8			413			432			(19	)		(4	)

Total revenue		565			563			490			538			493			2			—			72			15			1,618			1,535			83			5
Noninterest expense		210			213			221			219			213			(3	)		(1	)		(3	)		(1	)		644			639			5			1

Profit before provision for credit losses		355			350			269			319			280			5			1			75			27			974			896			78			9
Provision for credit losses		161			70			43			24			27			91			130			134			NM			274			73			201			NM

Income before income tax expense		194			280			226			295			253			(86	)		(31	)		(59	)		(23	)		700			823			(123	)		(15	)
Income tax expense		41			59			47			64			57			(18	)		(31	)		(16	)		(28	)		147			184			(37	)		(20	)

Net income	$	153		$	221		$	179		$	231		$	196		($	68	)		(31	%)	($	43	)		(22	%)	$	553		$	639		($	86	)		(13	%)

AVERAGE BALANCES
Total assets	$	60,889		$	65,280		$	59,005		$	56,407		$	55,614	)	($	4,391	)		(7	%)	$	5,275			9	%	$	61,722		$	55,793		$	5,929			11	%
Total loans and leases¹		57,796			62,011			56,555			54,523			53,814			(4,215	)		(7	)		3,982			7			58,784			54,299			4,485			8
Deposits		41,393			41,750			33,545			32,715			31,491			(357	)		(1	)		9,902			31			38,905			30,535			8,370			27
Interest-earning assets		58,177			62,422			57,016			54,905			54,087			(4,245	)		(7	)		4,090			8			59,201			54,585			4,616			8
KEY METRICS
Net interest margin		2.88	%		2.70	%		2.57	%		2.62	%		2.64	%		18	bps					24	bps					2.72	%		2.70	%		2	bps
Efficiency ratio		37.03			37.93			45.06			40.60			43.35			(90	)bps					(632	)bps					39.77			41.65			(188	)bps
Loans-to-deposits ratio (period-end balances)		129.43			140.79			164.10			165.24			163.62			(1,136	)bps					(3,419	)bps					129.43			163.62			(3,419	)bps
Loans-to-deposits ratio (average balances)		138.48			147.03			167.18			165.80			170.01			(855	)bps					(3,153	)bps					149.74			176.75			(2,701	)bps
Return on average total tangible assets		1.01			1.36			1.22			1.63			1.40			(35	)bps					(39	)bps					1.20			1.53			(33	)bps

¹	Includes loans held for sale.

SEGMENT FINANCIAL HIGHLIGHTS - OTHER

(in millions)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
OTHER¹																3Q20 Change																		2020 Change
	3Q20			2Q20			1Q20			4Q19			3Q19			2Q20						3Q19						2020			2019			2019
																$			%			$			%									$			%
Net interest income	($	129	)	($	73	)	$	2		($	16	)	($	14	)	($	56	)		(77	%)	($	115	)		NM		($	200	)	($	18	)	($	182	)		NM
Noninterest income		15			18			15			23			24			(3	)		(17	)		(9	)		(38	)		48			91			(43	)		(47	)

Total revenue		(114	)		(55	)		17			7			10			(59	)		(107	)		(124	)		NM			(152	)		73			(225	)		NM
Noninterest expense		36			31			53			49			42			5			16			(6	)		(14	)		120			89			31			35

Loss before provision for credit losses		(150	)		(86	)		(36	)		(42	)		(32	)		(64	)		(74	)		(118	)		NM			(272	)		(16	)		(256	)		NM
Provision for credit losses		212			314			460			(11	)		(9	)		(102	)		(32	)		221			NM			986			(18	)		1,004			NM

(Loss) income before income tax benefit		(362	)		(400	)		(496	)		(31	)		(23	)		38			10			(339	)		NM			(1,258	)		2			(1,260	)		NM
Income tax benefit		(116	)		(112	)		(115	)		(41	)		(25	)		(4	)		(4	)		(91	)		NM			(343	)		(34	)		(309	)		NM

Net (loss) income	($	246	)	($	288	)	($	381	)	$	10		$	2		$	42			15	%	($	248	)		NM		($	915	)	$	36		($	951	)		NM

AVERAGE BALANCES
Total assets	$	43,181		$	42,879		$	39,757		$	40,170		$	40,131		$	302			1	%	$	3,050			8	%	$	41,943		$	39,927		$	2,016			5	%
Total loans and leases²		1,753			1,759			1,846			1,951			1,994			(6	)		—			(241	)		(12	)		1,785			2,134			(349	)		(16	)
Deposits		5,762			8,199			7,857			7,460			6,835			(2,437	)		(30	)		(1,073	)		(16	)		7,267			7,354			(87	)		(1	)
Interest-earning assets		32,074			31,712			28,537			28,798			28,783			362			1			3,291			11			30,779			28,666			2,113			7

Includes the financial impact of non-core, liquidating loan portfolios and other non-core assets, our treasury activities, wholesale funding activities, securities portfolio, community development assets and other unallocated assets, liabilities, capital, revenues, provision for credit losses, expenses and income tax expense, not attributed to our Consumer Banking or Commercial Banking segments.

²	Includes loans held for sale.

CREDIT-RELATED INFORMATION

(in millions, except ratio data)


	AS OF															SEPTEMBER 30, 2020 CHANGE
	Sept 30, 2020			June 30, 2020			Mar 31, 2020			Dec 31, 2019			Sept 30, 2019			June 30, 2020						September 30, 2019
																$/bps			%			$/bps			%
NONACCRUAL LOANS AND LEASES¹
Commercial	$	435		$	366		$	305		$	240		$	228		$	69			19	%	$	207			91	%
Commercial real estate		323			61			8			2			49			262			NM			274			NM
Leases		2			79			1			3			4			(77	)		(97	)		(2	)		(50	)

Total commercial loans and leases		760			506			314			245			281			254			50			479			170
Residential mortgages²		131			112			101			93			91			19			17			40			44
Home equity		265			254			242			246			247			11			4			18			7
Automobile		80			67			69			67			69			13			19			11			16
Education		16			18			21			18			17			(2	)		(11	)		(1	)		(6	)
Other retail		25			33			33			34			32			(8	)		(24	)		(7	)		(22	)

Total retail loans		517			484			466			458			456			33			7			61			13

Nonaccrual loans and leases		1,277			990			780			703			737			287			29			540			73

Repossessed assets		27			33			44			45			40			(6	)		(18	)		(13	)		(33	)

Nonaccrual loans and leases and repossessed assets	$	1,304		$	1,023		$	824		$	748		$	777		$	281			27	%	$	527			68	%

NONACCRUAL LOANS AND LEASES BY PRODUCT³
Commercial	$	760		$	506		$	314		$	245		$	281		$	254			50	%	$	479			170	%
Retail		544			517			510			503			496			27			5			48			10

Total nonaccrual loans and leases	$	1,304		$	1,023		$	824		$	748		$	777		$	281			27	%	$	527			68	%


ASSET QUALITY RATIOS
Allowance for loan and lease losses to loans and leases		2.05	%		1.95	%		1.70	%		1.05	%		1.07	%		10 bps						98 bps
Allowance for credit losses to loans and leases		2.21			2.01			1.73			1.09			1.11			20						110
Allowance for loan and lease losses to nonaccrual and leases		199.04			247.40			278.51			177.99			171.39			NM						NM
Allowance for credit losses to nonaccrual loans and leases		214.22			255.39			283.48			184.31			177.42			NM						NM
Nonaccrual loans and leases to loans and leases		1.03			0.79			0.61			0.59			0.63			24						40

Beginning in the first quarter of 2020 and upon the adoption of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, nonperforming loans and leases are now referred to as nonaccrual loans and leases and other nonperforming assets are referred to as repossessed assets.

Beginning in the fourth quarter of 2019, nonaccrual balances exclude both fully and partially guaranteed residential mortgage loans sold to Ginnie Mae for which the Company has the right, but not the obligation, to repurchase. Prior periods have been adjusted to exclude partially guaranteed amounts to conform with the current period presentation.

3	Nonaccrual loans and leases by product includes repossessed assets.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except ratio data)


	AS OF										SEPTEMBER 30, 2020 CHANGE
	Sept 30, 2020		June 30, 2020		Mar 31, 2020		Dec 31, 2019		Sept 30, 2019		June 30, 2020						September 30, 2019
											$/bps			%			$/bps			%
LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING
Commercial	$	3	$	33	$	—	$	2	$	1	($	30	)		(91	%)	$	2			200	%
Commercial real estate		—		—		—		—		—		—			—			—			—
Leases		—		—		—		—		1		—			—			(1	)		(100	)

Total commercial loans and leases		3		33		—		2		2		(30	)		(91	)		1			50
Residential mortgages		17		13		14		13		15		4			31			2			13
Home equity		—		—		—		—		—		—			—			—			—
Automobile		—		—		—		—		—		—			—			—			—
Education		2		2		2		2		3		—			—			(1	)		(33	)
Other retail		6		7		11		8		10		(1	)		(14	)		(4	)		(40	)

Total retail loans		25		22		27		23		28		3			14			(3	)		(11	)

Total loans and leases	$	28	$	55	$	27	$	25	$	30	($	27	)		(49	%)	($	2	)		(7	%)

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS																										FOR THE NINE MONTHS ENDED SEPTEMBER 30,
															3Q20 Change																		2020 Change
	3Q20			2Q20			1Q20			4Q19		3Q19			2Q20						3Q19						2020			2019			2019
															$			%			$			%									$			%
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS
GROSS CHARGE-OFFS
Commercial	$	81		$	68		$	47		$	24	$	20		$	13			19	%	$	61			NM		$	196		$	63		$	133			211	%
Commercial real estate		42			—			—			9		10			42			100			32			NM			42			30			12			40
Leases		48			6			—			1		5			42			NM			43			NM			54			13			41			NM

Total commercial loans and leases		171			74			47			34		35			97			131			136			NM			292			106			186			175
Residential mortgages		2			2			1			2		2			—			—			—			—			5			6			(1	)		(17	)
Home equity		6			6			8			10		11			—			—			(5	)		(45	)		20			29			(9	)		(31	)
Automobile		22			31			39			38		37			(9	)		(29	)		(15	)		(41	)		92			105			(13	)		(12	)
Education		9			14			18			20		18			(5	)		(36	)		(9	)		(50	)		41			52			(11	)		(21	)
Other retail		47			53			61			58		56			(6	)		(11	)		(9	)		(16	)		161			155			6			4

Total retail loans		86			106			127			128		124			(20	)		(19	)		(38	)		(31	)		319			347			(28	)		(8	)

Total gross charge-offs	$	257		$	180		$	174		$	162	$	159		$	77			43	%	$	98			62	%	$	611		$	453		$	158			35	%

GROSS RECOVERIES
Commercial	$	1		$	3		$	3		$	7	$	3		($	2	)		(67	%)	($	2	)		(67	%)	$	7		$	17		($	10	)		(59	%)
Commercial real estate		—			—			—			—		—			—			—			—			—			—			—			—			—
Leases		—			—			—			—		—			—			—			—			—			—			—			—			—

Total commercial loans and leases		1			3			3			7		3			(2	)		(67	)		(2	)		(67	)		7			17			(10	)		(59	)
Residential mortgages		2			1			1			1		1			1			100			1			100			4			8			(4	)		(50	)
Home equity		8			8			11			10		12			—			—			(4	)		(33	)		27			39			(12	)		(31	)
Automobile		15			11			12			11		15			4			36			—			—			38			46			(8	)		(17	)
Education		4			4			4			4		4			—			—			—			—			12			12			—			—
Other retail		8			6			6			7		11			2			33			(3	)		(27	)		20			23			(3	)		(13	)

Total retail loans		37			30			34			33		43			7			23			(6	)		(14	)		101			128			(27	)		(21	)

Total gross recoveries	$	38		$	33		$	37		$	40	$	46		$	5			15	%	($	8	)		(17	%)	$	108		$	145		($	37	)		(26	%)

NET CHARGE-OFFS (RECOVERIES)
Commercial	$	80		$	65		$	44		$	17	$	17		$	15			23	%	$	63			NM		$	189		$	46		$	143			NM
Commercial real estate		42			—			—			9		10			42			100			32			NM			42			30			12			40
Leases		48			6			—			1		5			42			NM			43			NM			54			13			41			NM

Total commercial loans and leases		170			71			44			27		32			99			139			138			NM			285			89			196			220
Residential mortgages		—			1			—			1		1			(1	)		(100	)		(1	)		(100	)		1			(2	)		3			NM
Home equity		(2	)		(2	)		(3	)		—		(1	)		—			—			(1	)		(100	)		(7	)		(10	)		3			30
Automobile		7			20			27			27		22			(13	)		(65	)		(15	)		(68	)		54			59			(5	)		(8	)
Education		5			10			14			16		14			(5	)		(50	)		(9	)		(64	)		29			40			(11	)		(28	)
Other retail		39			47			55			51		45			(8	)		(17	)		(6	)		(13	)		141			132			9			7

Total retail loans		49			76			93			95		81			(27	)		(36	)		(32	)		(40	)		218			219			(1	)		—

Total net charge-offs	$	219		$	147		$	137		$	122	$	113		$	72			49	%	$	106			94	%	$	503		$	308		$	195			63	%

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except rates)


	QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																3Q20 Change																		2020 Change
	3Q20			2Q20			1Q20			4Q19			3Q19			2Q20						3Q19						2020			2019			2019
																$/bps			%			$/bps			%									$/bps			%
ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES
Commercial		0.68	%		0.52	%		0.41	%		0.16	%		0.16	%		16 bps						52 bps						0.54	%		0.15	%		39 bps
Commercial real estate		1.13			—			—			0.26			0.31			113 bps						82 bps						0.39			0.30			9 bps
Leases		7.99			1.03			0.07			0.19			0.80			696 bps						719 bps						2.99			0.64			235 bps
Total commercial loans and leases		1.06			0.42			0.30			0.19			0.22			64 bps						84 bps						0.60			0.21			39 bps
Residential mortgages		—			0.02			0.01			0.02			0.01			(2) bps						(1) bps						0.01			(0.01	)		2 bps
Home equity		(0.10	)		(0.05	)		(0.10	)		0.02			(0.04	)		(5) bps						(6) bps						(0.08	)		(0.10	)		2 bps
Automobile		0.24			0.68			0.88			0.85			0.74			(44) bps						(50) bps						0.60			0.67			(7) bps
Education		0.21			0.34			0.55			0.65			0.58			(13) bps						(37) bps						0.36			0.57			(21) bps
Other retail		2.46			2.93			3.21			3.09			3.08			(47) bps						(62) bps						2.88			3.08			(20) bps
Total retail loans		0.32			0.50			0.61			0.61			0.53			(18) bps						(21) bps						0.48			0.49			(1) bps
Total loans and leases		0.70	%		0.46	%		0.46	%		0.41	%		0.38	%		24 bps						32 bps						0.54	%		0.35	%		19 bps
Memo: Average loans
Commercial	$	46,844		$	50,443		$	43,152		$	42,012		$	41,476		($	3,599	)		(7	%)	$	5,368			13	%	$	46,813		$	41,597		$	5,216			13	%
Commercial real estate		14,644			14,540			13,876			13,103			12,892			104			1			1,752			14			14,354			13,179			1,175			9
Leases		2,373			2,426			2,482			2,546			2,615			(53	)		(2	)		(242	)		(9	)		2,427			2,744			(317	)		(12	)

Total commercial loans and leases		63,861			67,409			59,510			57,661			56,983			(3,548	)		(5	)		6,878			12			63,594			57,520			6,074			11
Residential mortgages		19,427			18,872			18,866			19,495			19,405			555			3			22			—			19,056			19,245			(189	)		(1	)
Home equity		12,416			12,736			13,042			13,265			13,501			(320	)		(3	)		(1,085	)		(8	)		12,730			13,774			(1,044	)		(8	)
Automobile		12,019			11,998			12,173			12,099			12,036			21			—			(17	)		—			12,063			12,030			33			—
Education		10,929			11,183			10,610			9,888			9,459			(254	)		(2	)		1,470			16			10,908			9,256			1,652			18
Other retail		6,260			6,557			6,854			6,497			5,873			(297	)		(5	)		387			7			6,556			5,736			820			14

Total retail loans		61,051			61,346			61,545			61,244			60,274			(295	)		—			777			1			61,313			60,041			1,272			2

Total loans and leases	$	124,912		$	128,755		$	121,055		$	118,905		$	117,257		($	3,843	)		(3	%)	$	7,655			7	%	$	124,907		$	117,561		$	7,346			6	%

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS																										FOR THE NINE MONTHS ENDED SEPTEMBER 30,
															3Q20 Change																		2020 Change
	3Q20		2Q20			1Q20			4Q19			3Q19			2Q20						3Q19						2020			2019			2019
															$			%			$			%									$			%
SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES
Allowance for loan and lease losses - beginning	$	2,448	$	2,171		$	1,252		$	1,263		$	1,227		$	277			13	%	$	1,221			100	%	$	1,252		$	1,242		$	10			1	%
Cumulative effect of change in accounting principle:
Commercial		—		—			(176	)		—			—			—			—			—			—			(176	)		—			(176	)		(100	)
Retail		—		—			629			—			—			—			—			—			—			629			—			629			100

Total cumulative effect of change in accounting principle		—		—			453			—			—			—			—			—			—			453			—			453			100

Allowance for loan and lease losses - beginning, adjusted		2,448		2,171			1,705			1,263			1,227			277			13			1,221			100			1,705			1,242			463			37
Charge-offs:
Commercial		171		74			47			34			35			97			131			136			NM			292			106			186			175
Retail		86		106			127			128			124			(20	)		(19	)		(38	)		(31	)		319			347			(28	)		(8	)

Total charge-offs		257		180			174			162			159			77			43			98			62			611			453			158			35
Recoveries:
Commercial		1		3			3			7			3			(2	)		(67	)		(2	)		(67	)		7			17			(10	)		(59	)
Retail		37		30			34			33			43			7			23			(6	)		(14	)		101			128			(27	)		(21	)

Total recoveries		38		33			37			40			46			5			15			(8	)		(17	)		108			145			(37	)		(26	)

Net charge-offs		219		147			137			122			113			72			49			106			94			503			308			195			63
Provision for loan and lease losses:
Commercial		224		554			298			(11	)		64			(330	)		(60	)		160			250			1,076			111			965			NM
Retail		89		(130	)		305			122			85			219			NM			4			5			264			218			46			21

Total provision for loan and lease losses		313		424			603			111			149			(111	)		(26	)		164			110			1,340			329			1,011			NM

Allowance for loan and lease losses - ending	$	2,542	$	2,448		$	2,171		$	1,252		$	1,263		$	94			4	%	$	1,279			101	%	$	2,542		$	1,263		$	1,279			101	%

Reserve for unfunded lending commitments -beginning	$	79	$	39		$	44		$	45		$	93		$	40			103	%	($	14	)		(15	%)	$	44		$	91		($	47	)		(52	%)
Cumulative effect of change in accounting principle		—		—			(2	)		—			—			—			—			—			—			(2	)		—			(2	)		—
Provision for unfunded lending commitments		115		40			(3	)		(1	)		(48	)		75			188			163			NM			152			(46	)		198			NM

Reserve for unfunded lending commitments - ending	$	194	$	79		$	39		$	44		$	45		$	115			146	%	$	149			NM		$	194		$	45		$	149			NM

Total allowance for credit losses - ending	$	2,736	$	2,527		$	2,210		$	1,296		$	1,308		$	209			8	%	$	1,428			109	%	$	2,736		$	1,308		$	1,428			109	%

Memo: Total allowance for credit losses by product
Commercial	$	1,441	$	1,304		$	790		$	718		$	757		$	137			11	%	$	684			90	%	$	1,441		$	757		$	684			90	%
Retail		1,295		1,223			1,420			578			551			72			6			744			135			1,295			551			744			135

Total allowance for credit losses	$	2,736	$	2,527		$	2,210		$	1,296		$	1,308		$	209			8	%	$	1,428			109	%	$	2,736		$	1,308		$	1,428			109	%

CAPITAL AND RATIOS

(in millions, except ratio data)


	AS OF																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																SEPTEMBER 30, 2020 CHANGE																2020 Change
	Sept 30, 2020			June 30, 2020			Mar 31, 2020			Dec 31, 2019			Sept 30, 2019			June 30, 2020						September 30, 2019						2020		2019					2019
																$			%			$			%							$			%
CAPITAL RATIOS AND COMPONENTS (PRELIMINARY)
CET1 capital	$	14,345		$	14,154		$	14,007		$	14,304		$	14,416		$	191			1	%	($	71	)		—	%
Tier 1 capital		16,310			16,119			15,577			15,874			15,549			191			1			761			5
Total capital		19,427			19,319			18,592			18,542			18,237			108			1			1,190			7
Risk-weighted assets		146,131			147,260			148,946			142,915			140,136			(1,129	)		(1	)		5,995			4
Adjusted average assets¹		171,938			174,017			161,715			158,782			156,355			(2,079	)		(1	)		15,583			10
CET1 capital ratio		9.8	%		9.6	%		9.4	%		10.0	%		10.3	%
Tier 1 capital ratio		11.2			10.9			10.5			11.1			11.1
Total capital ratio		13.3			13.1			12.5			13.0			13.0
Tier 1 leverage ratio		9.5			9.3			9.6			10.0			9.9
TANGIBLE COMMON EQUITY (PERIOD-END)
Common stockholders’ equity	$	20,504		$	20,453		$	20,380		$	20,631		$	20,718		$	51			—	%	($	214	)		(1	%)	$	20,504	$	20,718	($	214	)		(1	%)
Less: Goodwill		7,050			7,050			7,050			7,044			7,044			—			—			6			—			7,050		7,044		6			—
Less: Other intangible assets		60			63			66			68			71			(3	)		(5	)		(11	)		(15	)		60		71		(11	)		(15	)
Add: Deferred tax liabilities²		377			376			375			374			373			1			—			4			1			377		373		4			1

Total tangible common equity	$	13,771		$	13,716		$	13,639		$	13,893		$	13,976		$	55			—	%	($	205	)		(1	%)	$	13,771	$	13,976	($	205	)		(1	%)

TANGIBLE COMMON EQUITY (AVERAGE)
Common stockholders’ equity	$	20,534		$	20,446		$	20,223		$	20,400		$	20,533		$	88			—	%	$	1			—	%	$	20,401	$	20,300	$	101			—	%
Less: Goodwill		7,050			7,050			7,046			7,044			7,044			—			—			6			—			7,049		7,034		15			—
Less: Other intangible assets		62			65			67			69			73			(3	)		(5	)		(11	)		(15	)		65		71		(6	)		(8	)
Add: Deferred tax liabilities²		375			375			374			373			372			—			—			3			1			375		371		4			1

Total tangible common equity	$	13,797		$	13,706		$	13,484		$	13,660		$	13,788		$	91			1	%	$	9			—	%	$	13,662	$	13,566	$	96			1	%

INTANGIBLE ASSETS (PERIOD-END)
Goodwill	$	7,050		$	7,050		$	7,050		$	7,044		$	7,044		$	—			—	%	$	6			—	%	$	7,050	$	7,044	$	6			—	%
Other intangible assets		60			63			66			68			71			(3	)		(5	)		(11	)		(15	)		60		71		(11	)		(15	)

Total intangible assets	$	7,110		$	7,113		$	7,116		$	7,112		$	7,115		($	3	)		—	%	($	5	)		—	%	$	7,110	$	7,115	($	5	)		—	%

Adjusted 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.

2	Deferred 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																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																	3Q20 Change																		2020 Change
		3Q20			2Q20			1Q20			4Q19			3Q19			2Q20						3Q19						2020			2019			2019
																	$			%			$			%									$			%
Total revenue, Underlying:
Total revenue (GAAP)	A	$	1,791		$	1,750		$	1,657		$	1,637		$	1,638		$	41			2	%	$	153			9	%	$	5,198		$	4,854		$	344			7	%
Less: Notable items			—			—			—			—			—			—			—			—			—			—			—			—			—

Total revenue, Underlying (non-GAAP)	B	$	1,791		$	1,750		$	1,657		$	1,637		$	1,638		$	41			2	%	$	153			9	%	$	5,198		$	4,854		$	344			7	%

Noninterest expense, Underlying:
Noninterest expense (GAAP)	C	$	988		$	979		$	1,012		$	986		$	973		$	9			1	%	$	15			2	%	$	2,979		$	2,861		$	118			4	%
Less: Notable items			31			19			33			37			19			12			63			12			63			83			31			52			168

Noninterest expense, Underlying (non-GAAP)	D	$	957		$	960		$	979		$	949		$	954		($	3	)		—	%	$	3			—	%	$	2,896		$	2,830		$	66			2	%

Pre-provision profit:
Total revenue (GAAP)	A	$	1,791		$	1,750		$	1,657		$	1,637		$	1,638		$	41			2	%	$	153			9	%	$	5,198		$	4,854		$	344			7	%
Less: Noninterest expense (GAAP)	C		988			979			1,012			986			973			9			1			15			2			2,979			2,861			118			4

Pre-provision profit (GAAP)		$	803		$	771		$	645		$	651		$	665		$	32			4	%	$	138			21	%	$	2,219		$	1,993		$	226			11	%

Pre-provision profit, Underlying:
Total revenue, Underlying (non-GAAP)	B	$	1,791		$	1,750		$	1,657		$	1,637		$	1,638		$	41			2	%	$	153			9	%	$	5,198		$	4,854		$	344			7	%
Less: Noninterest expense, Underlying (non-GAAP)	D		957			960			979			949			954			(3	)		—			3			—			2,896			2,830			66			2

Pre-provision profit, Underlying (non-GAAP)		$	834		$	790		$	678		$	688		$	684		$	44			6	%	$	150			22	%	$	2,302		$	2,024		$	278			14	%

Income before income tax expense, Underlying:
Income before income tax expense (GAAP)	E	$	375		$	307		$	45		$	541		$	564		$	68			22	%	($	189	)		(34	%)	$	727		$	1,710		($	983	)		(57	%)
Less: Expense before income tax benefit related to notable items			(31	)		(19	)		(33	)		(37	)		(19	)		(12	)		(63	)		(12	)		(63	)		(83	)		(31	)		(52	)		(168	)

Income before income tax expense, Underlying (non-GAAP)	F	$	406		$	326		$	78		$	578		$	583		$	80			25	%	($	177	)		(30	%)	$	810		$	1,741		($	931	)		(53	%)

Income tax expense, Underlying:
Income tax expense (GAAP)	G	$	61		$	54		$	11		$	91		$	115		$	7			13	%	($	54	)		(47	%)	$	126		$	369		($	243	)		(66	%)
Less: Income tax benefit related to notable items			(7	)		(9	)		(8	)		(33	)		(15	)		2			22			8			53			(24	)		(18	)		(6	)		(33	)

Income tax expense, Underlying (non-GAAP)	H	$	68		$	63		$	19		$	124		$	130		$	5			8	%	($	62	)		(48	%)	$	150		$	387		($	237	)		(61	%)

Net income, Underlying:
Net income (GAAP)	I	$	314		$	253		$	34		$	450		$	449		$	61			24	%	($	135	)		(30	%)	$	601		$	1,341		($	740	)		(55	%)
Add: Notable items, net of income tax benefit			24			10			25			4			4			14			140			20			NM			59			13			46			NM

Net income, Underlying (non-GAAP)	J	$	338		$	263		$	59		$	454		$	453		$	75			29	%	($	115	)		(25	%)	$	660		$	1,354		($	694	)		(51	%)

Net income available to common stockholders, Underlying:
Net income available to common stockholders (GAAP)	K	$	289		$	225		$	12		$	427		$	432		$	64			28	%	($	143	)		(33	%)	$	526		$	1,291		($	765	)		(59	%)
Add: Notable items, net of income tax benefit			24			10			25			4			4			14			140			20			NM			59			13			46			NM

Net income available to common stockholders, Underlying (non-GAAP)	L	$	313		$	235		$	37		$	431		$	436		$	78			33	%	($	123	)		(28	%)	$	585		$	1,304		($	719	)		(55	%)

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED

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


		QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																	3Q20 Change																		2020 Change
		3Q20			2Q20			1Q20			4Q19			3Q19			2Q20						3Q19						2020			2019			2019
																	$/bps			%			$/bps			%									$/bps			%
Operating leverage:
Total revenue (GAAP)	A	$	1,791		$	1,750		$	1,657		$	1,637		$	1,638		$	41			2.36	%	$	153			9.29	%	$	5,198		$	4,854		$	344			7.07	%
Less: Noninterest expense (GAAP)	C		988			979			1,012			986			973			9			1.02			15			1.52			2,979			2,861			118			4.12

Operating leverage																					1.34	%					7.77	%											2.95	%

Operating leverage, Underlying:
Total revenue, Underlying (non-GAAP)	B	$	1,791		$	1,750		$	1,657		$	1,637		$	1,638		$	41			2.36	%	$	153			9.29	%	$	5,198		$	4,854		$	344			7.07	%
Less: Noninterest expense, Underlying (non-GAAP)	D		957			960			979			949			954			(3	)		(0.28	)		3			0.32			2,896			2,830			66			2.32

Operating leverage, Underlying (non-GAAP)																					2.64	%					8.97	%											4.75	%

Efficiency ratio and efficiency ratio, Underlying:
Efficiency ratio	C/A		55.18	%		55.91	%		61.10	%		60.28	%		59.40	%		(73) bps						(422) bps						57.31	%		58.94	%		(163) bps
Efficiency ratio, Underlying (non-GAAP)	D/B		53.44			54.85			59.08			58.02			58.22			(141) bps						(478) bps						55.72			58.30			(258) bps
Effective income tax rate and effective income tax rate,
Underlying:
Effective income tax rate	G/E		16.10	%		17.69	%		24.13	%		16.76	%		20.46	%		(159) bps						(436) bps						17.27	%		21.58	%		(431) bps
Effective income tax rate, Underlying (non-GAAP)	H/F		16.79			19.36			24.52			21.52			22.29			(257) bps						(550) bps						18.57			22.20			(363) bps
Return on average common equity and return on average common equity, Underlying:
Average common equity (GAAP)	M	$	20,534		$	20,446		$	20,223		$	20,400		$	20,533		$	88			—	%	$	1			—	%	$	20,401		$	20,300		$	101			—	%
Return on average common equity	K/M		5.60	%		4.44	%		0.24	%		8.30	%		8.35	%		116 bps						(275) bps						3.45	%		8.50	%		(505) bps
Return on average common equity, Underlying (non-GAAP)	L/M		6.05			4.63			0.74			8.36			8.45			142 bps						(240) bps						3.83			8.59			(476) bps
Return on average tangible common equity and return on average tangible common equity, Underlying:
Average common equity (GAAP)	M	$	20,534		$	20,446		$	20,223		$	20,400		$	20,533		$	88			—	%	$	1			—	%	$	20,401		$	20,300		$	101			—	%
Less: Average goodwill (GAAP)			7,050			7,050			7,046			7,044			7,044			—			—			6			—			7,049			7,034			15			—
Less: Average other intangibles (GAAP)			62			65			67			69			73			(3	)		(5	)		(11	)		(15	)		65			71			(6	)		(8	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			375			375			374			373			372			—			—			3			1			375			371			4			1

Average tangible common equity	N	$	13,797		$	13,706		$	13,484		$	13,660		$	13,788		$	91			1	%	$	9			—	%	$	13,662		$	13,566		$	96			1	%

Return on average tangible common equity	K/N		8.33	%		6.62	%		0.36	%		12.39	%		12.44	%		171 bps						(411) bps						5.15	%		12.72	%		(757) bps
Return on average tangible common equity, Underlying (non-
GAAP)	L/N		9.00			6.90			1.10			12.49			12.58			210 bps						(358) bps						5.71			12.86			(715) bps
Return on average total assets and return on average total assets, Underlying:
Average total assets (GAAP)	O	$	177,675		$	179,793		$	167,177		$	164,646		$	162,110		($	2,118	)		(1	%)	$	15,565			10	%	$	174,892		$	161,344		$	13,548			8	%
Return on average total assets	I/O		0.70	%		0.57	%		0.08	%		1.08	%		1.10	%		13 bps						(40) bps						0.46	%		1.11	%		(65) bps
Return on average total assets, Underlying (non-GAAP)	J/O		0.76			0.59			0.14			1.09			1.11			17 bps						(35) bps						0.50			1.12			(62) bps

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED

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


		QUARTERLY TRENDS																											FOR THE NINE MONTHS ENDED SEPTEMBER 30,
																	3Q20 Change																		2020 Change
		3Q20			2Q20			1Q20			4Q19			3Q19			2Q20						3Q19						2020			2019			2019
																	$/bps			%			$/bps			%									$/bps			%
Return on average total tangible assets and return on average total tangible assets, Underlying:
Average total assets (GAAP)	P	$	177,675		$	179,793		$	167,177		$	164,646		$	162,110		($	2,118	)		(1	%)	$	15,565			10	%	$	174,892		$	161,344		$	13,548			8	%
Less: Average goodwill (GAAP)			7,050			7,050			7,046			7,044			7,044			—			—			6			—			7,049			7,034			15			—
Less: Average other intangibles (GAAP)			62			65			67			69			73			(3	)		(5	)		(11	)		(15	)		65			71			(6	)		(8	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			375			375			374			373			372			—			—			3			1			375			371			4			1

Average tangible assets	Q	$	170,938		$	173,053		$	160,438		$	157,906		$	155,365		($	2,115	)		(1	%)	$	15,573			10	%	$	168,153		$	154,610		$	13,543			9	%

Return on average total tangible assets	I/Q		0.73	%		0.59	%		0.09	%		1.13	%		1.15	%		14 bps						(42) bps						0.48	%		1.16	%		(68	) bps
Return on average total tangible assets, Underlying (non-GAAP)	J/Q		0.79			0.61			0.15			1.14			1.16			18 bps						(37) bps						0.52			1.17			(65	) bps
Tangible book value per common share:
Common shares - at period-end (GAAP)	R		427,073,084			426,824,594			426,586,533			433,121,083			443,913,525			248,490			—	%		(16,840,441	)		(4	%)		427,073,084			443,913,525			(16,840,441	)		(4	%)
Common stockholders’ equity (GAAP)		$	20,504		$	20,453		$	20,380		$	20,631		$	20,718		$	51			—		($	214	)		(1	)	$	20,504		$	20,718		($	214	)		(1	)
Less: Goodwill (GAAP)			7,050			7,050			7,050			7,044			7,044			—			—			6			—			7,050			7,044			6			—
Less: Other intangible assets (GAAP)			60			63			66			68			71			(3	)		(5	)		(11	)		(15	)		60			71			(11	)		(15	)
Add: Deferred tax liabilities related to goodwill (GAAP)			377			376			375			374			373			1			—			4			1			377			373			4			1

Tangible common equity	S	$	13,771		$	13,716		$	13,639		$	13,893		$	13,976		$	55			—	%	($	205	)		(1	%)	$	13,771		$	13,976		($	205	)		(1	%)

Tangible book value per common share	S/R	$	32.24		$	32.13		$	31.97		$	32.08		$	31.48		$	0.11			—	%	$	0.76			2	%	$	32.24		$	31.48		$	0.76			2	%
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		426,846,096			426,613,053			427,718,421			434,684,606			445,703,987			233,043			—	%		(18,857,891	)		(4	%)		427,058,412			454,802,186			(27,743,774	)		(6	%)
Average common shares outstanding -diluted (GAAP)	U		427,992,349			427,566,920			429,388,855			436,500,829			447,134,595			425,429			—			(19,142,246	)		(4	)		428,142,358			456,218,755			(28,076,397	)		(6	)
Net income per average common share - basic (GAAP)	K/T	$	0.68		$	0.53		$	0.03		$	0.98		$	0.97		$	0.15			28		($	0.29	)		(30	)	$	1.23		$	2.84		($	1.61	)		(57	)
Net income per average common share - diluted (GAAP)	K/U		0.68			0.53			0.03			0.98			0.97			0.15			28			(0.29	)		(30	)		1.23			2.83			(1.60	)		(57	)
Net income per average common share - basic, Underlying (non-GAAP)	L/T		0.73			0.55			0.09			0.99			0.98			0.18			33			(0.25	)		(26	)		1.37			2.87			(1.50	)		(52	)
Net income per average common share - diluted, Underlying (non-
GAAP)	L/U		0.73			0.55			0.09			0.99			0.98			0.18			33			(0.25	)		(26	)		1.37			2.86			(1.49	)		(52	)
Dividend payout ratio and dividend payout ratio, Underlying:
Cash dividends declared and paid per common share	V	$	0.39		$	0.39		$	0.39		$	0.36		$	0.36		$	—			—	%	$	0.03			8	%	$	1.17		$	1.00		$	0.17			17	%
Dividend payout ratio	V/(K/T)		58	%		74	%		1,398	%		37	%		37	%		(1,617) bps						2,051 bps						95	%		35	%		5,970 bps
Dividend payout ratio, Underlying (non-GAAP)	V/(L/T)		53			71			451			36			37			(1,742) bps						1,659 bps						85			35			5,062 bps

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED

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


	QUARTERLY TRENDS																					FOR THE NINE MONTHS ENDED SEPTEMBER 30,
											3Q20 Change															2020 Change
	3Q20		2Q20		1Q20		4Q19		3Q19		2Q20						3Q19					2020		2019		2019
											$			%			$		%							$/bps			%
Salaries and employee benefits, Underlying:
Salaries and employee benefits (GAAP)	$	524	$	513	$	549	$	502	$	508	$	11			2	%	$	16		3	%	$	1,586	$	1,524	$	62			4	%
Less: Notable items		13		4		10		6		5		9			225			8		160			27		8		19			238

Salaries and employee benefits, Underlying (non-GAAP)	$	511	$	509	$	539	$	496	$	503	$	2			—	%	$	8		2	%	$	1,559	$	1,516	$	43			3	%

Equipment and software expense, Underlying:
Equipment and software expense (GAAP)	$	149	$	142	$	133	$	133	$	130	$	7			5	%	$	19		15	%	$	424	$	381	$	43			11	%
Less: Notable items		1		—		1		3		—		1			100			1		100			2		—		2			100

Equipment and software expense, Underlying (non-GAAP)	$	148	$	142	$	132	$	130	$	130	$	6			4	%	$	18		14	%	$	422	$	381	$	41			11	%

Outside services, Underlying:
Outside services (GAAP)	$	139	$	131	$	135	$	142	$	128	$	8			6	%	$	11		9	%	$	405	$	356	$	49			14	%
Less: Notable items		16		12		18		20		14		4			33			2		14			46		23		23			100

Outside services, Underlying (non-GAAP)	$	123	$	119	$	117	$	122	$	114	$	4			3	%	$	9		8	%	$	359	$	333	$	26			8	%

Occupancy, Underlying:
Occupancy (GAAP)	$	81	$	82	$	84	$	88	$	80	($	1	)		(1	%)	$	1		1	%	$	247	$	245	$	2			1	%
Less: Notable items		1		3		4		8		—		(2	)		(67	)		1		100			8		—		8			100

Occupancy, Underlying (non-GAAP)	$	80	$	79	$	80	$	80	$	80	$	1			1	%	$	—		—	%	$	239	$	245	($	6	)		(2	%)

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS

(in millions, except ratio data)


		THIRD QUARTER 2020												SECOND QUARTER 2020												FIRST QUARTER 2020
		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	$	407		$	153		($	246	)	$	314		$	320		$	221		($	288	)	$	253		$	236		$	179		($	381	)	$	34
Less: Preferred stock dividends			—			—			25			25			—			—			28			28			—			—			22			22

Net income (loss) available to common stockholders	B	$	407		$	153		($	271	)	$	289		$	320		$	221		($	316	)	$	225		$	236		$	179		($	403	)	$	12

Return on average total tangible assets:
Average total assets (GAAP)		$	73,605		$	60,889		$	43,181		$	177,675		$	71,634		$	65,280		$	42,879		$	179,793		$	68,415		$	59,005		$	39,757		$	167,177
Less: Average goodwill (GAAP)			122			52			6,876			7,050			122			52			6,876			7,050			122			48			6,876			7,046
Average other intangibles (GAAP)			40			5			17			62			41			6			18			65			43			6			18			67
Add: Average deferred tax liabilities related to goodwill (GAAP)			2			1			372			375			2			1			372			375			1			1			372			374

Average tangible assets	C	$	73,445		$	60,833		$	36,660		$	170,938		$	71,473		$	65,223		$	36,357		$	173,053		$	68,251		$	58,952		$	33,235		$	160,438

Return on average total tangible assets	A/C		2.21	%		1.01	%		NM			0.73	%		1.80	%		1.36	%		NM			0.59	%		1.39	%		1.22	%		NM			0.09	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$	742		$	210		$	36		$	988		$	735		$	213		$	31		$	979		$	738		$	221		$	53		$	1,012
Net interest income (GAAP)			845			421			(129	)		1,137			814			419			(73	)		1,160			793			365			2			1,160
Noninterest income (GAAP)			495			144			15			654			428			144			18			590			357			125			15			497

Total revenue (GAAP)	E	$	1,340		$	565		($	114	)	$	1,791		$	1,242		$	563		($	55	)	$	1,750		$	1,150		$	490		$	17		$	1,657

Efficiency ratio	D/E		55.35	%		37.03	%		NM			55.18	%		59.19	%		37.93	%		NM			55.91	%		64.16	%		45.06	%		NM			61.10	%


		FOURTH QUARTER 2019												THIRD QUARTER 2019
		Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income (loss) available to common stockholders:
Net income	A	$	209		$	231		$	10		$	450		$	251		$	196		$	2		$	449
Less: Preferred stock dividends			—			—			23			23			—			—			17			17

Net income (loss) available to common stockholders	B	$	209		$	231		($	13	)	$	427		$	251		$	196		($	15	)	$	432

Return on average total tangible assets:
Average total assets (GAAP)		$	68,069		$	56,407		$	40,170		$	164,646		$	66,365		$	55,614		$	40,131		$	162,110
Less: Average goodwill (GAAP)			122			46			6,876			7,044			122			46			6,876			7,044
Average other intangibles (GAAP)			63			6			—			69			66			7			—			73
Add: Average deferred tax liabilities related to goodwill (GAAP)			1			1			371			373			1			1			370			372

Average tangible assets	C	$	67,885		$	56,356		$	33,665		$	157,906		$	66,178		$	55,562		$	33,625		$	155,365

Return on average total tangible assets	A/C		1.22	%		1.63	%		NM			1.13	%		1.50	%		1.40	%		NM			1.15	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$	718		$	219		$	49		$	986		$	718		$	213		$	42		$	973
Net interest income (GAAP)			796			363			(16	)		1,143			799			360			(14	)		1,145
Noninterest income (GAAP)			296			175			23			494			336			133			24			493

Total revenue (GAAP)	E	$	1,092		$	538		$	7		$	1,637		$	1,135		$	493		$	10		$	1,638

Efficiency ratio	D/E		65.74	%		40.60	%		NM			60.28	%		63.28	%		43.35	%		NM			59.40	%

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

(in millions, except ratio data)


		FOR THE NINE MONTHS ENDED SEPTEMBER 30,
		2020												2019
		Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income (loss) available to common stockholders:
Net income (loss)	A	$	963		$	553		($	915	)	$	601		$	666		$	639		$	36		$	1,341
Less: Preferred stock dividends			—			—			75			75			—			—			50			50

Net income (loss) available to common stockholders	B	$	963		$	553		($	990	)	$	526		$	666		$	639		($	14	)	$	1,291

Return on average total tangible assets:
Average total assets (GAAP)		$	71,227		$	61,722		$	41,943		$	174,892		$	65,624		$	55,793		$	39,927		$	161,344
Less: Average goodwill (GAAP)			122			51			6,876			7,049			120			38			6,876			7,034
Average other intangibles (GAAP)			42			6			17			65			65			6			—			71
Add: Average deferred tax liabilities related to goodwill (GAAP)			2			1			372			375			1			—			370			371

Average tangible assets	C	$	71,065		$	61,666		$	35,422		$	168,153		$	65,440		$	55,749		$	33,421		$	154,610

Return on average total tangible assets	A/C		1.81	%		1.20	%		NM			0.48	%		1.36	%		1.53	%		NM			1.16	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$	2,215		$	644		$	120		$	2,979		$	2,133		$	639		$	89		$	2,861
Net interest income (GAAP)			2,452			1,205			(200	)		3,457			2,386			1,103			(18	)		3,471
Noninterest income (GAAP)			1,280			413			48			1,741			860			432			91			1,383

Total revenue (GAAP)	E	$	3,732		$	1,618		($	152	)	$	5,198		$	3,246		$	1,535		$	73		$	4,854

Efficiency ratio	D/E		59.34	%		39.77	%		NM			57.31	%		65.71	%		41.65	%		NM			58.94	%