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Published: 2024-01-17 06:29:09 ET

EX-99.3 4 q423financialsupplement.htm EX-99.3 Document

Financial Supplement

Fourth Quarter and Full Year 2023


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						15
Loans and Leases 90 Days or More Past Due and Accruing						16
Charge-offs, Recoveries, and Related Ratios						17
Summary of Changes in the Components of the Allowance for Credit Losses						19

Capital and Ratios						20

Non-GAAP Financial Measures and Reconciliations						21
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

(dollars in millions, except per share data)


	QUARTERLY TRENDS																		FULL YEAR
											4Q23 Change												2023 Change
	4Q23		3Q23		2Q23		1Q23		4Q22		3Q23				4Q22				2023		2022		2022
											$/bps		%		$/bps		%						$/bps		%
SELECTED OPERATING DATA
Total revenue	$1,988		$2,014		$2,094		$2,128		$2,200		($26)		(1	%)	($212)		(10	%)	$8,224		$8,021		$203		3	%
Noninterest expense	1,612		1,293		1,306		1,296		1,240		319		25		372		30		5,507		4,892		615		13
Profit before provision (benefit) for credit losses	376		721		788		832		960		(345)		(48)		(584)		(61)		2,717		3,129		(412)		(13)
Provision (benefit) for credit losses	171		172		176		168		132		(1)		(1)		39		30		687		474		213		45
NET INCOME	189		430		478		511		653		(241)		(56)		(464)		(71)		1,608		2,073		(465)		(22)
Net income, Underlying1	426		448		531		560		685		(22)		(5)		(259)		(38)		1,965		2,425		(460)		(19)
Net income available to common stockholders	159		400		444		488		621		(241)		(60)		(462)		(74)		1,491		1,960		(469)		(24)
Net income available to common stockholders, Underlying1	396		418		497		537		653		(22)		(5)		(257)		(39)		1,848		2,312		(464)		(20)
PER COMMON SHARE DATA
Basic earnings	$0.34		$0.85		$0.93		$1.00		$1.26		($0.51)		(60	%)	($0.92)		(73	%)	$3.14		$4.12		($0.98)		(24	%)
Diluted earnings	0.34		0.85		0.92		1.00		1.25		(0.51)		(60)		(0.91)		(73)		3.13		4.10		(0.97)		(24)
Basic earnings, Underlying1	0.85		0.89		1.04		1.10		1.32		(0.04)		(4)		(0.47)		(36)		3.89		4.86		(0.97)		(20)
Diluted earnings, Underlying1	0.85		0.89		1.04		1.10		1.32		(0.04)		(4)		(0.47)		(36)		3.88		4.84		(0.96)		(20)
Cash dividends declared and paid per common share	0.42		0.42		0.42		0.42		0.42		—		—		—		—		1.68		1.62		0.06		4
Book value per common share	47.87		44.75		45.44		45.84		44.03		3.12		7		3.84		9		47.87		44.03		3.84		9
Tangible book value per common share	30.91		27.73		28.72		29.44		27.88		3.18		11		3.03		11		30.91		27.88		3.03		11
Dividend payout ratio	124	%	49	%	45	%	42	%	33	%	7,412	bps			9,053	bps			54	%	39	%	1,450	bps
Dividend payout ratio, Underlying1	49		47		40		38		32		200	bps			1,700	bps			43		33		1,000	bps
COMMON SHARES OUTSTANDING
Average: Basic	466,234,324		469,481,085		479,470,543		485,444,313		493,293,981		(3,246,761)		(1	%)	(27,059,657)		(5	%)	475,089,384		475,959,815		(870,431)		—	%
Diluted	468,159,167		471,183,719		480,975,281		487,712,146		495,478,398		(3,024,552)		(1)		(27,319,231)		(6)		476,693,148		477,803,142		(1,109,994)		—
Common shares at period-end	466,418,055		466,221,795		474,682,759		483,982,264		492,282,158		196,260		—		(25,864,103)		(5)		466,418,055		492,282,158		(25,864,103)		(5)

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

(dollars in millions, except per share data)


	QUARTERLY TRENDS																FULL YEAR
											4Q23 Change										2023 Change
	4Q23		3Q23		2Q23		1Q23		4Q22		3Q23			4Q22			2023		2022		2022
											$/bps		%	$/bps		%					$/bps		%
FINANCIAL RATIOS
Net interest margin	2.90	%	3.03	%	3.16	%	3.29	%	3.29	%	(13) bps			(39) bps			3.09	%	3.10	%	(1)	bps
Net interest margin, FTE1	2.91		3.03		3.17		3.30		3.30		(12)			(39)			3.10		3.10		—
Return on average common equity	2.96		7.50		8.00		9.11		11.56		(454)			(860)			6.90		9.02		(212)
Return on average common equity, Underlying2	7.41		7.82		8.97		10.01		12.15		(41)			(474)			8.56		10.64		(208)
Return on average tangible common equity	4.72		12.00		12.42		14.38		18.46		(728)			(1,374)			10.92		13.91		(299)
Return on average tangible common equity, Underlying2	11.84		12.51		13.93		15.80		19.40		(67)			(756)			13.53		16.41		(288)
Return on average total assets	0.33		0.78		0.86		0.93		1.15		(45)			(82)			0.72		0.96		(24)
Return on average total assets, Underlying2	0.76		0.81		0.96		1.02		1.21		(5)			(45)			0.88		1.13		(25)
Return on average total tangible assets	0.35		0.81		0.89		0.97		1.19		(46)			(84)			0.75		1.00		(25)
Return on average total tangible assets, Underlying2	0.78		0.84		0.99		1.06		1.25		(6)			(47)			0.92		1.17		(25)
Effective income tax rate	7.59		21.51		22.09		22.97		21.16		(1,392)			(1,357)			20.76		21.93		(117)
Effective income tax rate, Underlying2	22.25		21.69		22.51		23.25		21.37		56			88			22.48		22.19		29
Efficiency ratio	81.13		64.21		62.34		60.90		56.36		1,692			2,477			66.97		60.99		598
Efficiency ratio, Underlying2	63.77		63.08		58.86		57.84		54.42		69			935			60.81		57.51		330
Noninterest income as a % of total revenue	25.16		24.44		24.14		22.81		22.92		72			224			24.12		25.04		(92)
Noninterest income as a % of total revenue, Underlying2	25.16		24.44		24.14		22.81		22.92		72			224			24.12		25.33		(121)
CAPITAL RATIOS - PERIOD-END (PRELIMINARY)
CET1 capital ratio	10.6	%	10.4	%	10.3	%	10.0	%	10.0	%
Tier 1 capital ratio	11.8		11.5		11.4		11.1		11.1
Total capital ratio	13.7		13.4		13.3		12.9		12.8
Tier 1 leverage ratio	9.3		9.4		9.4		9.4		9.3
Tangible common equity ratio	6.7		5.9		6.3		6.6		6.3
SELECTED BALANCE SHEET DATA
Loan-to-deposit ratio (period-end balances)	82.30	%	84.03	%	85.17	%	89.83	%	86.69	%	(173)	bps		(439)	bps		82.30	%	86.69	%	(439)	bps
Loan-to-deposit ratio (average balances)	83.54		85.46		88.73		89.76		87.74		(192)	bps		(420)	bps		86.83		86.77		6	bps
Full-time equivalent colleagues (period-end)	17,570		18,214		18,468		18,547		18,889		(644)		(4)	(1,319)		(7)	17,570		18,889		(1,319)		(7)

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)

(dollars in millions)


	QUARTERLY TRENDS											FULL YEAR
						4Q23 Change								2023 Change
	4Q23	3Q23	2Q23	1Q23	4Q22	3Q23			4Q22			2023	2022	2022
						$	%		$	%				$	%
INTEREST INCOME
Interest and fees on loans and leases	$2,144	$2,166	$2,132	$2,047	$1,893	($22)	(1	%)	$251	13	%	$8,489	$5,968	$2,521	42	%
Interest and fees on loans held for sale	18	20	20	15	16	(2)	(10)		2	13		73	67	6	9
Interest and fees on other loans held for sale	4	8	12	5	10	(4)	(50)		(6)	(60)		29	57	(28)	(49)
Investment securities	339	290	267	266	258	49	17		81	31		1,162	840	322	38
Interest-bearing deposits in banks	171	111	100	69	75	60	54		96	128		451	128	323	NM
Total interest income	2,676	2,595	2,531	2,402	2,252	81	3		424	19		10,204	7,060	3,144	45
INTEREST EXPENSE
Deposits	974	898	723	550	396	76	8		578	146		3,145	651	2,494	NM
Short-term borrowed funds	7	8	22	6	2	(1)	(13)		5	250		43	23	20	87
Long-term borrowed funds	207	167	198	203	159	40	24		48	30		775	374	401	107
Total interest expense	1,188	1,073	943	759	557	115	11		631	113		3,963	1,048	2,915	NM
Net interest income	1,488	1,522	1,588	1,643	1,695	(34)	(2)		(207)	(12)		6,241	6,012	229	4
NONINTEREST INCOME
Service charges and fees	104	105	101	100	105	(1)	(1)		(1)	(1)		410	420	(10)	(2)
Capital markets fees	87	67	82	83	98	20	30		(11)	(11)		319	368	(49)	(13)
Card fees	70	74	80	72	71	(4)	(5)		(1)	(1)		296	273	23	8
Trust and investment services fees	68	63	65	63	61	5	8		7	11		259	249	10	4
Mortgage banking fees	57	69	59	57	54	(12)	(17)		3	6		242	261	(19)	(7)
Foreign exchange and derivative products	43	48	44	48	35	(5)	(10)		8	23		183	188	(5)	(3)
Letter of credit and loan fees	42	43	43	40	41	(1)	(2)		1	2		168	159	9	6
Securities gains, net	9	5	9	5	4	4	80		5	125		28	9	19	211
Other income	20	18	23	17	36	2	11		(16)	(44)		78	82	(4)	(5)
Total noninterest income	500	492	506	485	505	8	2		(5)	(1)		1,983	2,009	(26)	(1)
TOTAL REVENUE	1,988	2,014	2,094	2,128	2,200	(26)	(1)		(212)	(10)		8,224	8,021	203	3
Provision (benefit) for credit losses	171	172	176	168	132	(1)	(1)		39	30		687	474	213	45
NONINTEREST EXPENSE
Salaries and employee benefits	667	659	615	658	633	8	1		34	5		2,599	2,549	50	2
Equipment and software	215	191	181	169	170	24	13		45	26		756	648	108	17
Outside services	174	160	177	176	170	14	9		4	2		687	700	(13)	(2)
Occupancy	125	107	136	124	110	18	17		15	14		492	410	82	20
Other operating expense	431	176	197	169	157	255	145		274	175		973	585	388	66
Total noninterest expense	1,612	1,293	1,306	1,296	1,240	319	25		372	30		5,507	4,892	615	13
Income before income tax expense	205	549	612	664	828	(344)	(63)		(623)	(75)		2,030	2,655	(625)	(24)
Income tax expense	16	119	134	153	175	(103)	(87)		(159)	(91)		422	582	(160)	(27)
Net income	$189	$430	$478	$511	$653	($241)	(56	%)	($464)	(71	%)	$1,608	$2,073	($465)	(22	%)
Net income, Underlying1	$426	$448	$531	$560	$685	($22)	(5	%)	($259)	(38	%)	$1,965	$2,425	($460)	(19	%)
Net income available to common stockholders	$159	$400	$444	$488	$621	($241)	(60	%)	($462)	(74	%)	$1,491	$1,960	($469)	(24	%)
Net income available to common stockholders, Underlying1	$396	$418	$497	$537	$653	($22)	(5	%)	($257)	(39	%)	$1,848	$2,312	($464)	(20	%)

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)

(dollars in millions, except par value)


PERIOD-END BALANCES	AS OF					DECEMBER 31, 2023 CHANGE
	Dec 31, 2023	Sept 30, 2023	June 30, 2023	Mar 31, 2023	Dec 31, 2022	September 30, 2023			December 31, 2022
						$	%		$	%
ASSETS
Cash and due from banks	$1,794	$1,395	$1,689	$1,283	$1,489	$399	29	%	$305	20	%
Interest-bearing cash and due from banks	9,834	14,005	9,878	6,691	9,058	(4,171)	(30)		776	9
Interest-bearing deposits in banks	405	324	284	320	303	81	25		102	34
Debt securities available for sale, at fair value	29,777	25,069	24,755	23,845	24,007	4,708	19		5,770	24
Debt securities held to maturity	9,184	9,320	9,520	9,677	9,834	(136)	(1)		(650)	(7)
Loans held for sale, at fair value	676	749	1,225	855	774	(73)	(10)		(98)	(13)
Other loans held for sale	103	99	196	1,000	208	4	4		(105)	(50)
Loans and leases	145,959	149,746	151,320	154,688	156,662	(3,787)	(3)		(10,703)	(7)
Less: Allowance for loan and lease losses	(2,098)	(2,080)	(2,044)	(2,017)	(1,983)	(18)	1		(115)	6
Net loans and leases	143,861	147,666	149,276	152,671	154,679	(3,805)	(3)		(10,818)	(7)
Derivative assets	440	522	719	569	842	(82)	(16)		(402)	(48)
Premises and equipment	895	878	876	866	844	17	2		51	6
Bank-owned life insurance	3,291	3,275	3,263	3,244	3,236	16	—		55	2
Goodwill	8,188	8,188	8,188	8,177	8,173	—	—		15	—
Other intangible assets	157	167	175	185	197	(10)	(6)		(40)	(20)
Other assets	13,359	13,613	13,022	12,873	13,089	(254)	(2)		270	2
TOTAL ASSETS	$221,964	$225,270	$223,066	$222,256	$226,733	($3,306)	(1	%)	($4,769)	(2	%)
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing	$37,107	$38,561	$40,286	$44,326	$49,283	($1,454)	(4	%)	($12,176)	(25	%)
Interest-bearing	140,235	139,636	137,381	127,868	131,441	599	—		8,794	7
Total deposits	177,342	178,197	177,667	172,194	180,724	(855)	—		(3,382)	(2)
Short-term borrowed funds	505	232	1,099	1,018	3	273	118		502	NM
Derivative liabilities	1,562	2,109	2,270	1,704	1,909	(547)	(26)		(347)	(18)
Long-term borrowed funds:
FHLB advances	3,786	7,036	5,029	11,779	8,519	(3,250)	(46)		(4,733)	(56)
Senior debt	5,170	5,258	5,258	5,263	5,555	(88)	(2)		(385)	(7)
Subordinated debt and other debt	4,511	5,060	3,813	1,813	1,813	(549)	(11)		2,698	149
Total long-term borrowed funds	13,467	17,354	14,100	18,855	15,887	(3,887)	(22)		(2,420)	(15)
Other liabilities	4,746	4,500	4,345	4,284	4,520	246	5		226	5
TOTAL LIABILITIES	197,622	202,392	199,481	198,055	203,043	(4,770)	(2)		(5,421)	(3)
STOCKHOLDERS' EQUITY
Preferred stock:
$25.00 par value, 100,000,000 shares authorized for each of the periods presented	2,014	2,014	2,014	2,014	2,014	—	—		—	—
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	22,250	22,231	22,207	22,183	22,142	19	—		108	—
Retained earnings	9,816	9,856	9,655	9,416	9,159	(40)	—		657	7
Treasury stock, at cost	(5,986)	(5,986)	(5,734)	(5,475)	(5,071)	—	—		(915)	(18)
Accumulated other comprehensive income (loss)	(3,758)	(5,243)	(4,563)	(3,943)	(4,560)	1,485	28		802	18
TOTAL STOCKHOLDERS' EQUITY	24,342	22,878	23,585	24,201	23,690	1,464	6		652	3
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$221,964	$225,270	$223,066	$222,256	$226,733	($3,306)	(1	%)	($4,769)	(2	%)
Memo: Total tangible common equity	$14,417	$12,930	$13,630	$14,247	$13,728	$1,487	12	%	$689	5	%

LOANS AND DEPOSITS

(dollars in millions)


PERIOD-END BALANCES	AS OF					DECEMBER 31, 2023 CHANGE
	Dec 31, 2023	Sept 30, 2023	June 30, 2023	Mar 31, 2023	Dec 31, 2022	Sept 30, 2023			December 31, 2022
						$	%		$	%
LOANS AND LEASES
Commercial and industrial	$43,826	$46,753	$48,038	$50,450	$51,836	($2,927)	(6	%)	($8,010)	(15	%)
Commercial real estate	29,471	29,486	28,947	28,999	28,865	(15)	—		606	2
Leases	1,148	1,218	1,294	1,417	1,479	(70)	(6)		(331)	(22)
Total commercial	74,445	77,457	78,279	80,866	82,180	(3,012)	(4)		(7,735)	(9)
Residential mortgages	31,332	30,983	30,769	30,362	29,921	349	1		1,411	5
Home equity	15,040	14,729	14,487	14,135	14,043	311	2		997	7
Automobile	8,258	9,290	10,428	11,535	12,292	(1,032)	(11)		(4,034)	(33)
Education	11,834	12,134	12,246	12,634	12,808	(300)	(2)		(974)	(8)
Other retail	5,050	5,153	5,111	5,156	5,418	(103)	(2)		(368)	(7)
Total retail	71,514	72,289	73,041	73,822	74,482	(775)	(1)		(2,968)	(4)
Total loans and leases	$145,959	$149,746	$151,320	$154,688	$156,662	($3,787)	(3	%)	($10,703)	(7	%)
Loans held for sale, at fair value	676	749	1,225	855	774	(73)	(10)		(98)	(13)
Other loans held for sale	103	99	196	1,000	208	4	4		(105)	(50)
Loans and leases and loans held for sale	$146,738	$150,594	$152,741	$156,543	$157,644	($3,856)	(3	%)	($10,906)	(7	%)

DEPOSITS
Demand	$37,107	$38,561	$40,286	$44,326	$49,283	($1,454)	(4	%)	($12,176)	(25	%)
Money market	53,812	53,517	52,542	48,905	49,905	295	1		3,907	8
Checking with interest	31,876	33,355	35,028	34,496	39,721	(1,479)	(4)		(7,845)	(20)
Savings	27,983	29,139	29,824	29,789	29,805	(1,156)	(4)		(1,822)	(6)
Term	26,564	23,625	19,987	14,678	12,010	2,939	12		14,554	121
Total deposits	$177,342	$178,197	$177,667	$172,194	$180,724	($855)	—	%	($3,382)	(2	%)


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

	QUARTERLY TRENDS												4Q23 Change
	4Q23				3Q23				4Q22				3Q23			4Q22
	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	$12,387	$171	5.43	%	$8,005	$111	5.42	%	$6,915	$75	4.22	%	$4,382	$60	1 bps	$5,472	$96	121 bps
Taxable investment securities	41,497	339	3.25		39,271	290	2.95		38,770	258	2.66		2,226	49	30	2,727	81	59
Non-taxable investment securities	2	—	2.66		2	—	2.68		2	—	2.39		—	—	(2)	—	—	27
Total investment securities	41,499	339	3.25		39,273	290	2.95		38,772	258	2.66		2,226	49	30	2,727	81	59

Commercial and industrial	45,433	706	6.07		47,658	750	6.17		52,311	652	4.89		(2,225)	(44)	(10)	(6,878)	54	118
Commercial real estate	29,460	476	6.32		29,353	467	6.23		28,735	382	5.19		107	9	9	725	94	113
Leases	1,185	10	3.54		1,250	12	3.56		1,422	12	3.25		(65)	(2)	(2)	(237)	(2)	29
Total commercial	76,078	1,192	6.13		78,261	1,229	6.15		82,468	1,046	4.97		(2,183)	(37)	(2)	(6,390)	146	116
Residential mortgages	31,146	276	3.55		30,838	267	3.46		29,677	246	3.32		308	9	9	1,469	30	23
Home equity	14,889	302	8.04		14,589	286	7.77		13,869	204	5.84		300	16	27	1,020	98	220
Automobile	8,752	94	4.24		9,849	103	4.16		12,692	125	3.90		(1,097)	(9)	8	(3,940)	(31)	34
Education	11,971	156	5.17		12,147	156	5.11		12,929	148	4.54		(176)	—	6	(958)	8	63
Other retail	5,133	124	9.64		5,107	125	9.67		5,464	124	9.02		26	(1)	(3)	(331)	—	62
Total retail	71,891	952	5.27		72,530	937	5.14		74,631	847	4.52		(639)	15	13	(2,740)	105	75
Total loans and leases	147,969	2,144	5.71		150,791	2,166	5.66		157,099	1,893	4.75		(2,822)	(22)	5	(9,130)	251	96
Loans held for sale, at fair value	1,047	18	6.79		1,204	20	6.72		1,179	16	5.32		(157)	(2)	7	(132)	2	147
Other loans held for sale	219	4	7.72		321	8	9.01		557	10	6.70		(102)	(4)	(129)	(338)	(6)	102
Total interest-earning assets	203,121	2,676	5.20		199,594	2,595	5.13		204,522	2,252	4.35		3,527	81	7	(1,401)	424	85


Noninterest-earning assets	20,532				20,568				20,448				(36)			84
TOTAL ASSETS	$223,653				$220,162				$224,970				$3,491			($1,317)
INTEREST-BEARING LIABILITIES
Checking with interest	$31,788	113	1.40		$33,545	126	1.49		$36,952	77	0.82		($1,757)	(13)	(9)	($5,164)	$36	58
Money market	53,003	444	3.32		52,057	415	3.17		50,228	208	1.65		946	29	15	2,775	236	167
Regular savings	28,455	123	1.72		29,516	123	1.65		29,780	58	0.78		(1,061)	—	7	(1,325)	65	94
Term	25,492	294	4.59		21,604	234	4.29		11,378	53	1.83		3,888	60	30	14,114	241	276
Total interest-bearing deposits	138,738	974	2.79		136,722	898	2.60		128,338	396	1.23		2,016	76	19	10,400	578	156
Short-term borrowed funds	491	7	5.63		506	8	6.21		262	2	3.83		(15)	(1)	(58)	229	5	180
FHLB advances	5,751	83	5.62		4,023	56	5.54		8,818	82	3.67		1,728	27	8	(3,067)	1	195
Senior debt	5,217	57	4.34		5,259	56	4.33		5,397	55	4.05		(42)	1	1	(180)	2	29
Subordinated debt and other debt	4,720	67	5.71		3,920	55	5.43		1,812	22	4.59		800	12	28	2,908	45	112
Total long-term borrowed funds	15,688	207	5.22		13,202	167	5.02		16,027	159	3.91		2,486	40	20	(339)	48	131
Total borrowed funds	16,179	214	5.24		13,708	175	5.07		16,289	161	3.90		2,471	39	17	(110)	53	134
Total interest-bearing liabilities	154,917	1,188	3.04		150,430	1,073	2.83		144,627	557	1.53		4,487	115	21	10,290	631	151
Demand deposits	38,390				39,728				50,706				(1,338)			(12,316)
Other noninterest-bearing liabilities	7,123				6,813				6,347				310			776
TOTAL LIABILITIES	200,430				196,971				201,680				3,459			(1,250)
STOCKHOLDERS' EQUITY	23,223				23,191				23,290				32			(67)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$223,653				$220,162				$224,970				$3,491			($1,317)
INTEREST RATE SPREAD			2.16	%			2.30	%			2.82	%			(14)			(66)
NET INTEREST MARGIN AND NET INTEREST INCOME		$1,488	2.90	%		$1,522	3.03	%		$1,695	3.29	%		($34)	(13)		($207)	(39)
NET INTEREST MARGIN AND NET INTEREST INCOME, FTE1		$1,492	2.91	%		$1,526	3.03	%		$1,699	3.30	%		($34)	(12)		($207)	(39)
Memo: Total deposits (interest-bearing and demand)	$177,128	$974	2.18	%	$176,450	$898	2.02	%	$179,044	$396	0.88	%	$678	$76	16 bps	($1,916)	$578	130 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
(dollars in millions)

	FULL YEAR								2023 Change
	2023				2022				2022
	Average Balances	Interest	Rate		Average Balances	Interest	Rate		Average Balances	Interest	Rate
INTEREST-EARNING ASSETS
Interest-bearing cash and due from banks and deposits in banks	$8,531	$451	5.22	%	$6,195	$128	2.04	%	$2,336	$323	318	bps
Taxable investment securities	39,437	1,162	2.94		35,639	840	2.35		3,798	322	59
Non-taxable investment securities	2	—	2.68		3	—	2.33		(1)	—	35
Total investment securities	39,439	1,162	2.94		35,642	840	2.35		3,797	322	59
Commercial and industrial	48,693	2,956	5.99		50,002	1,942	3.83		(1,309)	1,014	216
Commercial real estate	29,206	1,804	6.09		24,746	1,026	4.09		4,460	778	200
Leases	1,305	46	3.53		1,521	46	3.00		(216)	—	53
Total commercial	79,204	4,806	5.99		76,269	3,014	3.90		2,935	1,792	209
Residential mortgages	30,660	1,052	3.43		27,759	876	3.16		2,901	176	27
Home equity	14,475	1,092	7.54		13,057	555	4.25		1,418	537	329
Automobile	10,374	429	4.13		13,729	507	3.69		(3,355)	(78)	44
Education	12,333	621	5.04		13,047	560	4.29		(714)	61	75
Other retail	5,171	489	9.46		5,483	456	8.31		(312)	33	115
Total retail	73,013	3,683	5.04		73,075	2,954	4.04		(62)	729	100
Total loans and leases	152,217	8,489	5.53		149,344	5,968	3.97		2,873	2,521	156
Loans held for sale, at fair value	1,160	73	6.26		1,767	67	3.77		(607)	6	249
Other loans held for sale	339	29	8.43		1,188	57	4.71		(849)	(28)	372
Total interest-earning assets	201,686	10,204	5.02		194,136	7,060	3.61		7,550	3,144	141
Noninterest-earning assets	20,535				20,925				(390)
TOTAL ASSETS	$222,221				$215,061				$7,160
INTEREST-BEARING LIABILITIES
Checking with interest	$33,960	446	1.31		$36,127	142	0.39		($2,167)	304	92
Money market	51,178	1,494	2.92		48,410	320	0.66		2,768	1,174	226
Regular savings	29,266	433	1.48		27,524	100	0.37		1,742	333	111
Term	19,320	772	4.00		8,330	89	1.07		10,990	683	293
Total interest-bearing deposits	133,724	3,145	2.35		120,391	651	0.54		13,333	2,494	181
Short-term borrowed funds	746	43	5.70		1,584	23	1.47		(838)	20	423
FHLB advances	7,431	383	5.09		5,659	149	2.60		1,772	234	249
Senior debt	5,335	231	4.33		4,631	144	3.11		704	87	122
Subordinated debt and other debt	3,087	161	5.21		1,788	81	4.44		1,299	80	77
Total long-term borrowed funds	15,853	775	4.86		12,078	374	3.07		3,775	401	179
Total borrowed funds	16,599	818	4.89		13,662	397	2.88		2,937	421	201
Total interest-bearing liabilities	150,323	3,963	2.63		134,053	1,048	0.78		16,270	2,915	185
Demand deposits	41,581				51,717				(10,136)
Other noninterest-bearing liabilities	6,711				5,553				1,158
TOTAL LIABILITIES	198,615				191,323				7,292
STOCKHOLDERS' EQUITY	23,606				23,738				(132)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$222,221				$215,061				$7,160
INTEREST RATE SPREAD			2.39	%			2.83	%			(44)
NET INTEREST MARGIN AND NET INTEREST INCOME		$6,241	3.09	%		$6,012	3.10	%		$229	(1)
NET INTEREST MARGIN AND NET INTEREST INCOME, FTE1		$6,258	3.10	%		$6,023	3.10	%		$235	—
Memo: Total deposits (interest-bearing and demand)	$175,305	$3,145	1.79	%	$172,108	$651	0.38	%	$3,197	$2,494	141	bps

MORTGAGE BANKING FEES SUMMARY

(dollars in millions)


	QUARTERLY TRENDS																		FULL YEAR
											4Q23 Change												2023 Change
	4Q23		3Q23		2Q23		1Q23		4Q22		3Q23				4Q22				2023		2022		2022
											$/bps		%		$/bps		%						$/bps		%
MORTGAGE BANKING FEES
Production revenue	$11		$19		$23		$18		$12		($8)		(42	%)	($1)		(8	%)	$71		$84		($13)		(15	%)
Mortgage servicing revenue	37		35		34		37		40		2		6		(3)		(8)		143		147		(4)		(3)
MSR valuation changes, net of hedge impact	9		15		2		2		2		(6)		(40)		7		NM		28		30		(2)		(7)
Total mortgage banking fees	$57		$69		$59		$57		$54		($12)		(17	%)	$3		6	%	$242		$261		($19)		(7	%)

Pull-through adjusted locks	$1,412		$2,397		$2,870		$2,078		$1,665		($985)		(41	%)	($253)		(15	%)	$8,757		$13,413		($4,656)		(35	%)

Production revenue as a percentage of Pull-through adjusted locks	0.78	%	0.79	%	0.79	%	0.90	%	0.72	%	(1)	bps			6	bps			0.81	%	0.63	%	19	bps



RESIDENTIAL REAL ESTATE ORIGINATIONS
Retail	$958		$1,146		$1,260		$1,011		$1,103		($188)		(16	%)	($145)		(13	%)	$4,375		$8,951		($4,576)		(51	%)
Third Party	1,214		2,285		2,350		1,333		1,652		(1,071)		(47)		(438)		(27)		7,182		12,019		(4,837)		(40)
Total	$2,172		$3,431		$3,610		$2,344		$2,755		($1,259)		(37	%)	(583)		(21	%)	$11,557		$20,970		($9,413)		(45	%)

Originated for sale	$1,595		$2,815		$2,874		$1,651		$2,044		($1,220)		(43	%)	($449)		(22	%)	$8,935		$15,073		($6,138)		(41	%)
Originated for investment	577		616		736		693		711		(39)		(6)		(134)		(19)		2,622		5,897		(3,275)		(56)
Total	$2,172		$3,431		$3,610		$2,344		$2,755		($1,259)		(37	%)	($583)		(21	%)	$11,557		$20,970		($9,413)		(45	%)

MORTGAGE SERVICING INFORMATION (UPB)
Loans serviced for others	$97,420		$97,603		$96,591		$96,346		$96,698		($183)		—	%	$722		1	%	$97,420		$96,698		$722		1	%
Owned loans serviced	31,640		31,436		31,636		30,827		30,135		204		1		1,505		5		31,640		30,135		1,505		5
Total	$129,060		$129,039		$128,227		$127,173		$126,833		$21		—	%	$2,227		2	%	$129,060		$126,833		$2,227		2	%

MSR at fair value	$1,552		$1,620		$1,524		$1,496		$1,530		($68)		(4	%)	$22		1	%	$1,552		$1,530		$22		1	%

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING

(dollars in millions)


	QUARTERLY TRENDS																		FULL YEAR
CONSUMER BANKING1											4Q23 Change												2023 Change
	4Q23		3Q23		2Q23		1Q23		4Q22		3Q23				4Q22				2023		2022		2022
											$/bps		%		$/bps		%						$/bps		%
Net interest income	$1,086		$1,067		$1,023		$1,011		$1,014		$19		2	%	$72		7	%	$4,187		$3,649		$538		15	%
Noninterest income	265		278		268		256		256		(13)		(5)		9		4		1,067		1,063		4		—
Total revenue	1,351		1,345		1,291		1,267		1,270		6		—		81		6		5,254		4,712		542		12
Noninterest expense	905		905		875		857		831		—		—		74		9		3,542		3,255		287		9
Profit (loss) before credit losses	446		440		416		410		439		6		1		7		2		1,712		1,457		255		18
Net charge-offs	82		67		68		63		57		15		22		25		44		280		174		106		61
Income (loss) before income tax expense (benefit)	364		373		348		347		382		(9)		(2)		(18)		(5)		1,432		1,283		149		12
Income tax expense (benefit)	95		97		91		90		98		(2)		(2)		(3)		(3)		373		328		45		14
Net income (loss)	$269		$276		$257		$257		$284		($7)		(3	%)	($15)		(5	%)	$1,059		$955		$104		11	%
AVERAGE BALANCES
Total assets	$73,334		$72,964		$72,583		$71,872		$71,688		$370		1	%	$1,646		2	%	$72,693		$68,027		$4,666		7	%
Total loans and leases2	66,906		66,641		66,289		65,570		65,619		265		—		1,287		2		66,356		62,523		3,833		6
Deposits	118,474		117,979		115,847		115,578		117,164		495		—		1,310		1		116,980		114,482		2,498		2
Interest-earning assets	67,524		67,273		66,933		66,251		66,338		251		—		1,186		2		66,999		63,289		3,710		6
KEY METRICS
Net interest margin	6.40	%	6.28	%	6.12	%	6.20	%	6.07	%	12	bps			33	bps			6.25	%	5.77	%	48	bps
Efficiency ratio	67.08		67.18		67.74		67.70		65.39		(10)	bps			169	bps			67.42		69.08		(166)	bps
Loan-to-deposit ratio (period-end balances)	55.52		55.81		55.35		56.37		54.91		(29)	bps			61	bps			55.52		54.91		61	bps
Loan-to-deposit ratio (average balances)	55.88		55.71		56.44		56.25		55.14		17	bps			74	bps			56.07		53.18		289	bps
Return on average total tangible assets	1.47		1.51		1.43		1.46		1.59		(4)	bps			(12)	bps			1.47		1.41		6	bps

1 During the third quarter of 2023, the Company’s indirect auto and certain purchased consumer loan portfolios were transferred from Consumer Banking into a new Non-Core segment. In addition, the Company revised its funds transfer pricing ("FTP") methodology relative to the funding of Non-Core assets, with the FTP charge based on a marginal high-cost funding waterfall approach. Prior period results have been revised to conform to the new segment presentation.

2 Includes loans held for sale.

SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING

(dollars in millions)


	QUARTERLY TRENDS																		FULL YEAR
COMMERCIAL BANKING											4Q23 Change												2023 Change
	4Q23		3Q23		2Q23		1Q23		4Q22		3Q23				4Q22				2023		2022		2022
											$/bps		%		$/bps		%						$/bps		%
Net interest income	$551		$560		$584		$597		$595		($9)		(2	%)	($44)		(7	%)	$2,292		$2,103		$189		9	%
Noninterest income	196		180		207		201		198		16		9		(2)		(1)		784		845		(61)		(7)
Total revenue	747		740		791		798		793		7		1		(46)		(6)		3,076		2,948		128		4
Noninterest expense	324		325		315		331		318		(1)		—		6		2		1,295		1,223		72		6
Profit (loss) before credit losses	423		415		476		467		475		8		2		(52)		(11)		1,781		1,725		56		3
Net charge-offs	65		67		71		47		12		(2)		(3)		53		NM		250		46		204		NM
Income (loss) before income tax expense (benefit)	358		348		405		420		463		10		3		(105)		(23)		1,531		1,679		(148)		(9)
Income tax expense (benefit)	89		88		100		101		105		1		1		(16)		(15)		378		375		3		1
Net income (loss)	$269		$260		$305		$319		$358		$9		3	%	($89)		(25	%)	$1,153		$1,304		($151)		(12	%)
AVERAGE BALANCES
Total assets	$72,758		$74,997		$77,546		$78,891		$79,591		($2,239)		(3	%)	($6,833)		(9	%)	$76,028		$74,919		$1,109		1	%
Total loans and leases1	69,899		71,898		74,295		75,734		75,773		(1,999)		(3)		(5,874)		(8)		72,937		70,992		1,945		3
Deposits	46,962		47,221		45,494		48,966		52,303		(259)		(1)		(5,341)		(10)		47,155		49,898		(2,743)		(5)
Interest-earning assets	70,267		72,275		74,687		76,130		76,097		(2,008)		(3)		(5,830)		(8)		73,321		71,276		2,045		3
KEY METRICS
Net interest margin	3.11	%	3.07	%	3.13	%	3.18	%	3.10	%	4	bps			1	bps			3.12	%	2.95	%	17	bps
Efficiency ratio	43.44		43.93		39.76		41.47		40.18		(49)	bps			326	bps			42.10		41.50		60	bps
Loan-to-deposit ratio (period-end balances)	146.09		145.77		150.41		162.54		141.44		32	bps			465	bps			146.09		141.44		465	bps
Loan-to-deposit ratio (average balances)	147.64		150.96		160.89		153.33		143.49		(332)	bps			415	bps			153.12		139.65		1,347	bps
Return on average total tangible assets	1.48		1.39		1.59		1.66		1.80		9	bps			(32)	bps			1.53		1.76		(23)	bps

1 Includes loans held for sale.

SEGMENT FINANCIAL HIGHLIGHTS - NON-CORE

(dollars in millions)


	QUARTERLY TRENDS																		FULL YEAR
NON-CORE1											4Q23 Change												2023 Change
	4Q23		3Q23		2Q23		1Q23		4Q22		3Q23				4Q22				2023		2022		2022
											$/bps		%		$/bps		%						$/bps		%
Net interest income	($45)		($41)		($28)		($15)		$19		($4)		(10	%)	($64)		NM		($129)		$378		($507)		NM
Noninterest income	—		—		—		—		—		—		—		—		—		—		—		—		—
Total revenue	(45)		(41)		(28)		(15)		19		(4)		(10)		(64)		NM		(129)		378		(507)		NM
Noninterest expense	28		30		33		32		31		(2)		(7)		(3)		(10)		123		136		(13)		(10)
Profit (loss) before credit losses	(73)		(71)		(61)		(47)		(12)		(2)		(3)		(61)		NM		(252)		242		(494)		NM
Net charge offs	24		20		13		21		19		4		20		5		26		78		52		26		50
Income (loss) before income tax expense (benefit)	(97)		(91)		(74)		(68)		(31)		(6)		(7)		(66)		(213)		(330)		190		(520)		NM
Income tax expense (benefit)	(25)		(24)		(19)		(18)		(8)		(1)		(4)		(17)		(213)		(86)		48		(134)		NM
Net income (loss)	($72)		($67)		($55)		($50)		($23)		($5)		(7	%)	($49)		(213	%)	($244)		$142		($386)		NM
AVERAGE BALANCES
Total assets	$11,776		$13,113		$14,456		$15,686		$16,752		($1,337)		(10	%)	($4,976)		(30	%)	$13,745		$18,121		($4,376)		(24	%)
Total loans and leases2	11,701		13,010		14,395		15,620		16,683		(1,309)		(10)		(4,982)		(30)		13,669		18,048		(4,379)		(24)
Interest-earning assets	11,726		13,010		14,395		15,620		16,683		(1,284)		(10)		(4,957)		(30)		13,675		18,048		(4,373)		(24)
KEY METRICS
Net interest margin	(1.54)	%	(1.24)	%	(0.77)	%	(0.40)	%	0.47	%	(30)	bps			(201)	bps			(0.94)	%	2.10	%	(304)	bps

Return on average total tangible assets	(2.42)		(2.03)		(1.53)		(1.30)		(0.54)		(39)	bps			(188)	bps			(1.78)		0.78		(256)	bps

2 Includes loans held for sale.

SEGMENT FINANCIAL HIGHLIGHTS - OTHER

(dollars in millions)


	QUARTERLY TRENDS											FULL YEAR
OTHER1,2						4Q23 Change								2023 Change
	4Q23	3Q23	2Q23	1Q23	4Q22	3Q23			4Q22			2023	2022	2022
						$	%		$	%				$	%
Net interest income	($104)	($64)	$9	$50	$67	($40)	(63	%)	($171)	NM		($109)	($118)	$9	8	%
Noninterest income	39	34	31	28	51	5	15		(12)	(24)		132	101	31	31
Total revenue	(65)	(30)	40	78	118	(35)	(117)		(183)	NM		23	(17)	40	NM
Noninterest expense	355	33	83	76	60	322	NM		295	NM		547	278	269	97
Profit (loss) before provision (benefit) for credit losses	(420)	(63)	(43)	2	58	(357)	NM		(478)	NM		(524)	(295)	(229)	(78)
Provision (benefit) for credit losses	—	18	24	37	44	(18)	(100)		(44)	(100)		79	202	(123)	(61)
Income (loss) before income tax expense (benefit)	(420)	(81)	(67)	(35)	14	(339)	NM		(434)	NM		(603)	(497)	(106)	(21)
Income tax expense (benefit)	(143)	(42)	(38)	(20)	(20)	(101)	(240)		(123)	NM		(243)	(169)	(74)	(44)
Net income (loss)	($277)	($39)	($29)	($15)	$34	($238)	NM		($311)	NM		($360)	($328)	($32)	(10)
AVERAGE BALANCES
Total assets	$65,785	$59,088	$57,788	$56,262	$56,939	$6,697	11	%	$8,846	16	%	$59,755	$53,994	$5,761	11	%
Total loans and leases3	729	766	748	773	760	(37)	(5)		(31)	(4)		755	736	19	3
Deposits	11,692	11,250	11,908	9,806	9,577	442	4		2,115	22		11,170	7,728	3,442	45
Interest-earning assets	53,604	47,035	45,482	44,550	45,405	6,569	14		8,199	18		47,691	41,522	6,169	15

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

2 During the third quarter of 2023, the Company’s indirect auto and certain purchased consumer loan portfolios were transferred from Consumer Banking into a new Non-Core segment. In addition, the Company revised its funds transfer pricing ("FTP") methodology relative to the funding of Non-Core assets, with the FTP charge based on a marginal high-cost funding waterfall approach. Prior period results have been revised to conform to the new segment presentation.

3 Includes loans held for sale.

CREDIT-RELATED INFORMATION

(dollars in millions)


	AS OF										DECEMBER 31, 2023 CHANGE
	Dec 31, 2023		Sept 30, 2023		June 30, 2023		Mar 31, 2023		Dec 31, 2022		Sept 30, 2023				December 31, 2022
											$/bps/%		%		$/bps/%		%
NONACCRUAL LOANS AND LEASES
Commercial and industrial	$294		$242		$280		$297		$249		$52		21	%	$45		18	%
Commercial real estate	477		470		352		140		103		7		1		374		NM
Leases	3		3		3		—		—		—		—		3		100
Total commercial	774		715		635		437		352		59		8		422		120
Residential mortgages1	177		190		201		216		234		(13)		(7)		(57)		(24)
Home equity	285		268		251		240		241		17		6		44		18
Automobile	61		62		51		50		56		(1)		(2)		5		9
Education	28		23		22		23		33		5		22		(5)		(15)
Other retail	39		38		31		30		28		1		3		11		39
Total retail	590		581		556		559		592		9		2		(2)		—
Nonaccrual loans and leases	1,364		1,296		1,191		996		944		68		5		420		44
Repossessed assets	14		15		11		14		16		(1)		(7)		(2)		(13)
Nonaccrual loans and leases and repossessed assets	$1,378		$1,311		$1,202		$1,010		$960		$67		5	%	$418		44	%
NONACCRUAL LOANS AND LEASES BY PRODUCT2
Commercial	$774		$715		$635		$437		$352		$59		8	%	$422		120	%
Retail	604		596		567		573		608		8		1		(4)		(1)
Total nonaccrual loans and leases	$1,378		$1,311		$1,202		$1,010		$960		$67		5	%	$418		44	%
ASSET QUALITY RATIOS
Allowance for loan and lease losses to loans and leases	1.44	%	1.39	%	1.35	%	1.30	%	1.27	%	5	bps			17	bps
Allowance for credit losses to loans and leases	1.59		1.55		1.52		1.47		1.43		4				16
Allowance for loan and lease losses to nonaccrual loans and leases	154		160		172		203		210		(6	%)			(56	%)
Allowance for credit losses to nonaccrual loans and leases	170		179		193		229		237		(9	%)			(67	%)
Nonaccrual loans and leases to loans and leases	0.93		0.87		0.79		0.64		0.60		6	bps			33	bps

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

(dollars in millions)


	AS OF					DECEMBER 31, 2023 CHANGE
	Dec 31, 2023	Sept 30, 2023	June 30, 2023	Mar 31, 2023	Dec 31, 2022	Sept 30, 2023			December 31, 2022
						$/bps	%		$/bps	%
LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING
Commercial and industrial	$6	$4	$2	$21	$21	$2	50	%	($15)	(71	%)
Commercial real estate	40	3	—	63	1	37	NM		39	NM
Leases	—	—	—	—	—	—	—		—	—
Total commercial	46	7	2	84	22	39	NM		24	109
Residential mortgages1	256	217	257	314	319	39	18		(63)	(20)
Home equity	—	—	—	—	—	—	—		—	—
Automobile	—	—	—	—	—	—	—		—	—
Education	2	3	3	3	4	(1)	(33)		(2)	(50)
Other retail	29	21	20	23	22	8	38		7	32
Total retail	287	241	280	340	345	46	19		(58)	(17)
Total loans and leases	$333	$248	$282	$424	$367	$85	34	%	($34)	(9	%)

1 90+ days past due and accruing includes $243 million, $216 million, $256 million, $309 million, and $316 million of loans fully or partially guaranteed by the FHA, VA, and USDA for December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023 and December 31, 2022, respectively.

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS											FULL YEAR
						4Q23 Change								2023 Change
	4Q23	3Q23	2Q23	1Q23	4Q22	3Q23			4Q22			2023	2022	2022
						$	%		$	%				$	%
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS
GROSS CHARGE-OFFS
Commercial and industrial	$24	$25	$17	$55	$21	($1)	(4	%)	$3	14		$121	$68	$53	78	%
Commercial real estate	49	49	62	4	—	—	—		49	100		164	2	162	NM
Leases	—	—	—	—	—	—	—		—	—		—	—	—	—
Total commercial	73	74	79	59	21	(1)	(1)		52	248		285	70	215	NM
Residential mortgages	3	1	1	1	1	2	200		2	200		6	5	1	20
Home equity	4	3	3	2	2	1	33		2	100		12	9	3	33
Automobile	31	28	24	30	27	3	11		4	15		113	93	20	22
Education	35	27	26	23	24	8	30		11	46		111	78	33	42
Other retail	60	58	56	56	51	2	3		9	18		230	179	51	28
Total retail	133	117	110	112	105	16	14		28	27		472	364	108	30
Total gross charge-offs	$206	$191	$189	$171	$126	$15	8	%	$80	63	%	$757	$434	$323	74	%
GROSS RECOVERIES
Commercial and industrial	$3	$3	$2	$3	$5	$—	—	%	($2)	(40	%)	$11	$17	($6)	(35	%)
Commercial real estate	1	1	—	1	—	—	—		1	100		3	1	2	200
Leases	—	—	1	3	—	—	—		—	—		4	—	4	100
Total commercial	4	4	3	7	5	—	—		(1)	(20)		18	18	—	—
Residential mortgages	1	2	1	—	1	(1)	(50)		—	—		4	6	(2)	(33)
Home equity	5	6	6	5	6	(1)	(17)		(1)	(17)		22	37	(15)	(41)
Automobile	14	13	16	15	14	1	8		—	—		58	57	1	2
Education	5	5	4	5	5	—	—		—	—		19	19	—	—
Other retail	6	8	7	6	7	(2)	(25)		(1)	(14)		27	27	—	—
Total retail	31	34	34	31	33	(3)	(9)		(2)	(6)		130	146	(16)	(11)
Total gross recoveries	$35	$38	$37	$38	$38	($3)	(8	%)	($3)	(8	%)	$148	$164	($16)	(10	%)
NET CHARGE-OFFS (RECOVERIES)
Commercial and industrial	$21	$22	$15	$52	$16	($1)	(5	%)	$5	31		$110	$51	$59	116
Commercial real estate	48	48	62	3	—	—	—		48	100		161	1	160	NM
Leases	—	—	(1)	(3)	—	—	—		—	—		(4)	—	(4)	—
Total commercial	69	70	76	52	16	(1)	(1)		53	NM		267	52	215	NM
Residential mortgages	2	(1)	—	1	—	3	NM		2	100		2	(1)	3	NM
Home equity	(1)	(3)	(3)	(3)	(4)	2	67		3	75		(10)	(28)	18	64
Automobile	17	15	8	15	13	2	13		4	31		55	36	19	53
Education	30	22	22	18	19	8	36		11	58		92	59	33	56
Other retail	54	50	49	50	44	4	8		10	23		203	152	51	34
Total retail	102	83	76	81	72	19	23		30	42		342	218	124	57
Total net charge-offs	$171	$153	$152	$133	$88	$18	12	%	$83	94	%	$609	$270	$339	126	%

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																		FULL YEAR
											4Q23 Change												2023 Change
	4Q23		3Q23		2Q23		1Q23		4Q22		3Q23				4Q22				2023		2022		2022
											$/bps		%		$/bps		%						$/bps		%
ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES
Commercial and industrial	0.18	%	0.18	%	0.12	%	0.40	%	0.12	%	—	bps			6	bps			0.23	%	0.10	%	13	bps
Commercial real estate	0.66		0.65		0.86		0.05		—		1				66				0.56		—		56
Leases	(0.04)		—		(0.22)		(0.85)		(0.06)		(4)				2				(0.29)		(0.03)		(26)
Total commercial	0.36		0.35		0.38		0.26		0.07		1				29				0.34		0.07		27
Residential mortgages	0.02		(0.02)		—		0.01		—		4				2				—		—		—
Home equity	(0.04)		(0.08)		(0.08)		(0.07)		(0.12)		4				8				(0.07)		(0.22)		15
Automobile	0.77		0.60		0.30		0.51		0.42		17				35				0.53		0.26		27
Education	1.00		0.72		0.68		0.57		0.59		28				41				0.74		0.45		29
Other retail	4.13		3.95		3.84		3.81		3.21		18				92				3.93		2.77		116
Total retail	0.56		0.46		0.41		0.44		0.39		10				17				0.47		0.30		17
Total loans and leases	0.46	%	0.40	%	0.40	%	0.34	%	0.22	%	6	bps			24	bps			0.40	%	0.18	%	22	bps
Memo: Average loans
Commercial and industrial	$45,433		$47,658		$49,770		$51,993		$52,311		($2,225)		(5	%)	($6,878)		(13	%)	$48,693		$50,002		($1,309)		(3	%)
Commercial real estate	29,460		29,353		29,115		28,892		28,735		107		—		725		3		29,206		24,746		4,460		18
Leases	1,185		1,250		1,352		1,436		1,422		(65)		(5)		(237)		(17)		1,305		1,521		(216)		(14)
Total commercial	76,078		78,261		80,237		82,321		82,468		(2,183)		(3)		(6,390)		(8)		79,204		76,269		2,935		4
Residential mortgages	31,146		30,838		30,566		30,075		29,677		308		1		1,469		5		30,660		27,759		2,901		10
Home equity	14,889		14,589		14,340		14,073		13,869		300		2		1,020		7		14,475		13,057		1,418		11
Automobile	8,752		9,849		10,997		11,937		12,692		(1,097)		(11)		(3,940)		(31)		10,374		13,729		(3,355)		(24)
Education	11,971		12,147		12,430		12,796		12,929		(176)		(1)		(958)		(7)		12,333		13,047		(714)		(5)
Other retail	5,133		5,107		5,155		5,290		5,464		26		1		(331)		(6)		5,171		5,483		(312)		(6)
Total retail	71,891		72,530		73,488		74,171		74,631		(639)		(1)		(2,740)		(4)		73,013		73,075		(62)		—
Total loans and leases	$147,969		$150,791		$153,725		$156,492		$157,099		($2,822)		(2	%)	($9,130)		(6	%)	$152,217		$149,344		$2,873		2	%

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS											FULL YEAR
						4Q23 Change								2023 Change
	4Q23	3Q23	2Q23	1Q23	4Q22	3Q23			4Q22			2023	2022	2022
						$	%		$	%				$	%
SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES
Allowance for loan and lease losses - beginning	$2,080	$2,044	$2,017	$1,983	$1,980	$36	2	%	$100	5	%	$1,983	$1,758	$225	13	%





Allowance on PCD loans and leases at acquisition:
Commercial	—	—	—	—	—	—	—		—	—		—	99	(99)	(100)
Retail	—	—	—	—	—	—	—		—	—		—	2	(2)	(100)
Total Allowance on PCD loans and leases at acquisition	—	—	—	—	—	—	—		—	—		—	101	(101)	(100)
Charge-offs:
Commercial	73	74	79	59	21	(1)	(1)		52	248		285	70	215	NM
Retail	133	117	110	112	105	16	14		28	27		472	364	108	30
Total charge-offs	206	191	189	171	126	15	8		80	63		757	434	323	74
Recoveries:
Commercial	4	4	3	7	5	—	—		(1)	(20)		18	18	—	—
Retail	31	34	34	31	33	(3)	(9)		(2)	(6)		130	146	(16)	(11)
Total recoveries	35	38	37	38	38	(3)	(8)		(3)	(8)		148	164	(16)	(10)
Net charge-offs	171	153	152	133	88	18	12		83	94		609	270	339	126
Provision (benefit) for loan and lease losses:
Commercial	86	146	122	103	46	(60)	(41)		40	87		457	192	265	138
Retail	103	43	57	64	45	60	140		58	129		267	202	65	32
Total provision (benefit) for loan and lease losses	189	189	179	167	91	—	—		98	108		724	394	330	84
Allowance for loan and lease losses - ending	$2,098	$2,080	$2,044	$2,017	$1,983	$18	1	%	$115	6	%	$2,098	$1,983	$115	6	%

Allowance for unfunded lending commitments - beginning	$238	$255	$258	$257	$216	($17)	(7	%)	$22	10	%	$257	$176	$81	46	%

Allowance on PCD unfunded lending commitments at acquisition	—	—	—	—	—	—	—	%	—	—		—	1	(1)	(100)
Provision (benefit) for unfunded lending commitments	(18)	(17)	(3)	1	41	(1)	(6	%)	(59)	NM		(37)	80	(117)	NM
Allowance for unfunded lending commitments - ending	$220	$238	$255	$258	$257	($18)	(8	%)	($37)	(14)		$220	$257	($37)	(14)
Total allowance for credit losses - ending	$2,318	$2,318	$2,299	$2,275	$2,240	$—	—	%	$78	3	%	$2,318	$2,240	$78	3	%

Memo: Total allowance for credit losses by product
Commercial	$1,425	$1,425	$1,370	$1,326	$1,267	$—	—	%	$158	12	%	$1,425	$1,267	$158	12	%
Retail	893	893	929	949	973	—	—		(80)	(8)		893	973	(80)	(8)
Total allowance for credit losses	$2,318	$2,318	$2,299	$2,275	$2,240	$—	—	%	$78	3	%	$2,318	$2,240	$78	3	%

CAPITAL AND RATIOS

(dollars in millions)


	AS OF																FULL YEAR
											DECEMBER 31, 2023 CHANGE								2023 Change
	Dec 31, 2023		Sept 30, 2023		June 30, 2023		Mar 31, 2023		Dec 31, 2022		Sept 30, 2023			December 31, 2022			2023	2022	2022
											$	%		$	%				$	%
CAPITAL RATIOS AND COMPONENTS (PRELIMINARY)
CET1 capital	$18,358		$18,360		$18,381		$18,370		$18,574		($2)	—	%	($216)	(1	%)
Tier 1 capital	20,372		20,374		20,395		20,384		20,588		(2)	—		(216)	(1)
Total capital	23,608		23,682		23,748		23,720		23,755		(74)	—		(147)	(1)
Risk-weighted assets	172,601		176,407		179,034		183,246		185,224		(3,806)	(2)		(12,623)	(7)
Adjusted average assets1	219,591		215,877		217,264		217,998		220,779		3,714	2		(1,188)	(1)
CET1 capital ratio	10.6	%	10.4	%	10.3	%	10.0	%	10.0	%
Tier 1 capital ratio	11.8		11.5		11.4		11.1		11.1
Total capital ratio	13.7		13.4		13.3		12.9		12.8
Tier 1 leverage ratio	9.3		9.4		9.4		9.4		9.3
TANGIBLE COMMON EQUITY (PERIOD-END)
Common stockholders' equity	$22,329		$20,864		$21,571		$22,187		$21,676		$1,465	7	%	$653	3	%	$22,329	$21,676	$653	3	%
Less: Goodwill	8,188		8,188		8,188		8,177		8,173		—	—		15	—		8,188	8,173	15	—
Less: Other intangible assets	157		167		175		185		197		(10)	(6)		(40)	(20)		157	197	(40)	(20)
Add: Deferred tax liabilities2	433		421		422		422		422		12	3		11	3		433	422	11	3
Total tangible common equity	$14,417		$12,930		$13,630		$14,247		$13,728		$1,487	12	%	$689	5	%	$14,417	$13,728	$689	5	%
TANGIBLE COMMON EQUITY (AVERAGE)
Common stockholders' equity	$21,209		$21,177		$22,289		$21,702		$21,276		$32	—	%	($67)	—	%	$21,592	$21,724	($132)	(1	%)
Less: Goodwill	8,188		8,188		8,182		8,177		8,171		—	—		17	—		8,184	7,872	312	4
Less: Other intangible assets	163		173		181		192		199		(10)	(6)		(36)	(18)		177	181	(4)	(2)
Add: Deferred tax liabilities2	421		422		422		422		424		(1)	—		(3)	(1)		422	413	9	2
Total tangible common equity	$13,279		$13,238		$14,348		$13,755		$13,330		$41	—	%	($51)	—	%	$13,653	$14,084	($431)	(3	%)
INTANGIBLE ASSETS (PERIOD-END)
Goodwill	$8,188		$8,188		$8,188		$8,177		$8,173		$—	—	%	$15	—	%	$8,188	$8,173	$15	—	%
Other intangible assets	157		167		175		185		197		(10)	(6)		(40)	(20)		157	197	(40)	(20)
Total intangible assets	$8,345		$8,355		$8,363		$8,362		$8,370		($10)	—	%	($25)	—	%	$8,345	$8,370	($25)	—	%

1Adjusted average assets include quarterly average assets, less deductions for disallowed goodwill and other intangible assets, net of deferred taxes, 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 and other intangible assets.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

(dollars in millions, except per share data)

Non-GAAP Financial Measures

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

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

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED (dollars in millions, except per share data)


		QUARTERLY TRENDS											FULL YEAR
							4Q23 Change								2023 Change
		4Q23	3Q23	2Q23	1Q23	4Q22	3Q23			4Q22			2023	2022	2022
							$	%		$	%				$	%
Noninterest income, Underlying:
Noninterest income (GAAP)	A	$500	$492	$506	$485	$505	$8	2	%	($5)	(1	%)	$1,983	$2,009	($26)	(1	%)
Less: Notable items		—	—	—	—	—	—	—		—	—		—	(31)	31	100
Noninterest income, Underlying (non-GAAP)	B	$500	$492	$506	$485	$505	$8	2	%	($5)	(1	%)	$1,983	$2,040	($57)	(3	%)
Total revenue, Underlying:
Total revenue (GAAP)	C	$1,988	$2,014	$2,094	$2,128	$2,200	($26)	(1	%)	($212)	(10	%)	$8,224	$8,021	$203	3	%
Less: Notable items		—	—	—	—	—	—	—		—	—		—	(31)	31	100
Total revenue, Underlying (non-GAAP)	D	$1,988	$2,014	$2,094	$2,128	$2,200	($26)	(1	%)	($212)	(10	%)	$8,224	$8,052	$172	2	%
Noninterest expense, Underlying:
Noninterest expense (GAAP)	E	$1,612	$1,293	$1,306	$1,296	$1,240	$319	25	%	$372	30	%	$5,507	$4,892	$615	13	%
Less: Notable items		345	22	73	66	43	323	NM		302	NM		506	262	244	93
Noninterest expense, Underlying (non-GAAP)	F	$1,267	$1,271	$1,233	$1,230	$1,197	($4)	—	%	$70	6	%	$5,001	$4,630	$371	8	%
Pre-provision profit:
Total revenue (GAAP)	C	$1,988	$2,014	$2,094	$2,128	$2,200	($26)	(1	%)	($212)	(10	%)	$8,224	$8,021	$203	3	%
Less: Noninterest expense (GAAP)	E	1,612	1,293	1,306	1,296	1,240	319	25		372	30		5,507	4,892	615	13
Pre-provision profit (GAAP)		$376	$721	$788	$832	$960	($345)	(48	%)	($584)	(61	%)	$2,717	$3,129	($412)	(13	%)
Pre-provision profit, Underlying:
Total revenue, Underlying (non-GAAP)	D	$1,988	$2,014	$2,094	$2,128	$2,200	($26)	(1	%)	($212)	(10	%)	$8,224	$8,052	$172	2	%
Less: Noninterest expense, Underlying (non-GAAP)	F	1,267	1,271	1,233	1,230	1,197	(4)	—		70	6		5,001	4,630	371	8
Pre-provision profit, Underlying (non-GAAP)		$721	$743	$861	$898	$1,003	($22)	(3	%)	($282)	(28	%)	$3,223	$3,422	($199)	(6	%)
Provision (benefit) for credit losses, Underlying:
Provision (benefit) for credit losses (GAAP)		$171	$172	$176	$168	$132	($1)	(1	%)	$39	30	%	$687	$474	$213	45	%
Less: Notable items		—	—	—	—	—	—	—		—	—		—	169	(169)	(100)
Provision (benefit) for credit losses, Underlying (non-GAAP)		$171	$172	$176	$168	$132	($1)	(1	%)	$39	30	%	$687	$305	$382	125	%
Income before income tax expense, Underlying:
Income before income tax expense (GAAP)	G	$205	$549	$612	$664	$828	($344)	(63	%)	($623)	(75	%)	$2,030	$2,655	($625)	(24	%)
Less: Income (expense) before income tax expense (benefit) related to notable items		(345)	(22)	(73)	(66)	(43)	(323)	NM		(302)	NM		(506)	(462)	(44)	(10)
Income before income tax expense, Underlying (non-GAAP)	H	$550	$571	$685	$730	$871	($21)	(4	%)	($321)	(37	%)	$2,536	$3,117	($581)	(19	%)
Income tax expense, Underlying:
Income tax expense (GAAP)	I	$16	$119	$134	$153	$175	($103)	(87	%)	($159)	(91	%)	$422	$582	($160)	(27	%)
Less: Income tax expense (benefit) related to notable items		(108)	(4)	(20)	(17)	(11)	(104)	NM		(97)	NM		(149)	(110)	(39)	(35)
Income tax expense, Underlying (non-GAAP)	J	$124	$123	$154	$170	$186	$1	1	%	($62)	(33	%)	$571	$692	($121)	(17	%)
Net income, Underlying:
Net income (GAAP)	K	$189	$430	$478	$511	$653	($241)	(56	%)	($464)	(71	%)	$1,608	$2,073	($465)	(22	%)
Add: Notable items, net of income tax benefit		237	18	53	49	32	219	NM		205	NM		357	352	5	1
Net income, Underlying (non-GAAP)	L	$426	$448	$531	$560	$685	($22)	(5	%)	($259)	(38	%)	$1,965	$2,425	($460)	(19	%)
Net income available to common stockholders, Underlying:
Net income available to common stockholders (GAAP)	M	$159	$400	$444	$488	$621	($241)	(60	%)	($462)	(74	%)	$1,491	$1,960	($469)	(24	%)
Add: Notable items, net of income tax benefit		237	18	53	49	32	219	NM		205	NM		357	352	5	1
Net income available to common stockholders, Underlying (non-GAAP)	N	$396	$418	$497	$537	$653	($22)	(5	%)	($257)	(39	%)	$1,848	$2,312	($464)	(20	%)

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED

(dollars in millions, except per share data)


		QUARTERLY TRENDS																		FULL YEAR
												4Q23 Change												2023 Change
		4Q23		3Q23		2Q23		1Q23		4Q22		3Q23				4Q22				2023		2022		2022
												$/bps		%		$/bps		%						$/bps		%
Operating leverage:
Total revenue (GAAP)	C	$1,988		$2,014		$2,094		$2,128		$2,200		($26)		(1.39	%)	($212)		(9.70	%)	$8,224		$8,021		$203		2.53	%
Less: Noninterest expense (GAAP)	E	1,612		1,293		1,306		1,296		1,240		319		24.60		372		30.00		5,507		4,892		615		12.58
Operating leverage														(25.99	%)			(39.70	%)							(10.05	%)
Operating leverage, Underlying:
Total revenue, Underlying (non-GAAP)	D	$1,988		$2,014		$2,094		$2,128		$2,200		($26)		(1.39	%)	($212)		(9.70	%)	$8,224		$8,052		$172		2.13	%
Less: Noninterest expense, Underlying (non-GAAP)	F	1,267		1,271		1,233		1,230		1,197		(4)		(0.30)		70		5.82		5,001		4,630		371		8.00
Operating leverage, Underlying (non-GAAP)														(1.09	%)			(15.52	%)							(5.87	%)
Efficiency ratio and efficiency ratio, Underlying:
Efficiency ratio	E/C	81.13	%	64.21	%	62.34	%	60.90	%	56.36	%	1,692	bps			2,477	bps			66.97	%	60.99	%	598	bps
Efficiency ratio, Underlying (non-GAAP)	F/D	63.77		63.08		58.86		57.84		54.42		69	bps			935	bps			60.81		57.51		330	bps
Noninterest income as a % of total revenue, Underlying:
Noninterest income as a % of total revenue	A/C	25.16	%	24.44	%	24.14	%	22.81	%	22.92	%	72	bps			224	bps			24.12	%	25.04	%	(92)	bps
Noninterest income as a % of total revenue, Underlying	B/D	25.16		24.44		24.14		22.81		22.92		72	bps			224	bps			24.12		25.33		(121)	bps
Effective income tax rate and effective income tax rate, Underlying:
Effective income tax rate	I/G	7.59	%	21.51	%	22.09	%	22.97	%	21.16	%	(1,392)	bps			(1,357)	bps			20.76	%	21.93	%	(117)	bps
Effective income tax rate, Underlying (non-GAAP)	J/H	22.25		21.69		22.51		23.25		21.37		56	bps			88	bps			22.48		22.19		29	bps
Return on average common equity and return on average common equity, Underlying:
Average common equity (GAAP)	O	$21,209		$21,177		$22,289		$21,702		$21,276		$32		—	%	($67)		—	%	$21,592		$21,724		($132)		(1	%)
Return on average common equity	M/O	2.96	%	7.50	%	8.00	%	9.11	%	11.56	%	(454)	bps			(860)	bps			6.90	%	9.02	%	(212)	bps
Return on average common equity, Underlying (non-GAAP)	N/O	7.41		7.82		8.97		10.01		12.15		(41)	bps			(474)	bps			8.56		10.64		(208)	bps
Return on average tangible common equity and return on average tangible common equity, Underlying:
Average common equity (GAAP)	O	$21,209		$21,177		$22,289		$21,702		$21,276		$32		—	%	($67)		—	%	$21,592		$21,724		($132)		(1	%)
Less: Average goodwill (GAAP)		8,188		8,188		8,182		8,177		8,171		—		—		17		—		8,184		7,872		312		4
Less: Average other intangibles (GAAP)		163		173		181		192		199		(10)		(6)		(36)		(18)		177		181		(4)		(2)
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP)		421		422		422		422		424		(1)		—		(3)		(1)		422		413		9		2
Average tangible common equity	P	$13,279		$13,238		$14,348		$13,755		$13,330		$41		—	%	($51)		—	%	$13,653		$14,084		($431)		(3	%)
Return on average tangible common equity	M/P	4.72	%	12.00	%	12.42	%	14.38	%	18.46	%	(728)	bps			(1,374)	bps			10.92	%	13.91	%	(299)	bps
Return on average tangible common equity, Underlying (non-GAAP)	N/P	11.84		12.51		13.93		15.80		19.40		(67)	bps			(756)	bps			13.53		16.41		(288)	bps
Return on average total assets and return on average total assets, Underlying:
Average total assets (GAAP)	Q	$223,653		$220,162		$222,373		$222,711		$224,970		$3,491		2	%	($1,317)		(1	%)	$222,221		$215,061		$7,160		3	%
Return on average total assets	K/Q	0.33	%	0.78	%	0.86	%	0.93	%	1.15	%	(45)	bps			(82)	bps			0.72	%	0.96	%	(24)	bps
Return on average total assets, Underlying (non-GAAP)	L/Q	0.76		0.81		0.96		1.02		1.21		(5)	bps			(45)	bps			0.88		1.13		(25)	bps

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED

(dollars in millions, except per share data)


		QUARTERLY TRENDS																		FULL YEAR
												4Q23 Change												2023 Change
		4Q23		3Q23		2Q23		1Q23		4Q22		3Q23				4Q22				2023		2022		2022
												$/bps		%		$/bps		%						$/bps		%
Return on average total tangible assets and return on average total tangible assets, Underlying:
Average total assets (GAAP)	Q	$223,653		$220,162		$222,373		$222,711		$224,970		$3,491		2	%	($1,317)		(1	%)	$222,221		$215,061		$7,160		3	%
Less: Average goodwill (GAAP)		8,188		8,188		8,182		8,177		8,171		—		—		17		—		8,184		7,872		312		4
Less: Average other intangibles (GAAP)		163		173		181		192		199		(10)		(6)		(36)		(18)		177		181		(4)		(2)
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP)		421		422		422		422		424		(1)		—		(3)		(1)		422		413		9		2
Average tangible assets	R	$215,723		$212,223		$214,432		$214,764		$217,024		$3,500		2	%	($1,301)		(1	%)	$214,282		$207,421		$6,861		3	%
Return on average total tangible assets	K/R	0.35	%	0.81	%	0.89	%	0.97	%	1.19	%	(46)	bps			(84)	bps			0.75	%	1.00	%	(25)	bps
Return on average total tangible assets, Underlying (non-GAAP)	L/R	0.78		0.84		0.99		1.06		1.25		(6)	bps			(47)	bps			0.92		1.17		(25)	bps
Tangible book value per common share:
Common shares - at period-end (GAAP)	S	466,418,055		466,221,795		474,682,759		483,982,264		492,282,158		196,260		—	%	(25,864,103)		(5	%)	466,418,055		492,282,158		(25,864,103)		(5	%)
Common stockholders' equity (GAAP)		$22,329		$20,864		$21,571		$22,187		$21,676		$1,465		7		$653		3		$22,329		$21,676		$653		3
Less: Goodwill (GAAP)		8,188		8,188		8,188		8,177		8,173		—		—		15		—		8,188		8,173		15		—
Less: Other intangible assets (GAAP)		157		167		175		185		197		(10)		(6)		(40)		(20)		157		197		(40)		(20)
Add: Deferred tax liabilities related to goodwill and other intangible assets (GAAP)		433		421		422		422		422		12		3		11		3		433		422		11		3
Tangible common equity	T	$14,417		$12,930		$13,630		$14,247		$13,728		$1,487		12	%	$689		5	%	$14,417		$13,728		$689		5	%
Tangible book value per common share	T/S	$30.91		$27.73		$28.72		$29.44		$27.88		$3.18		11	%	$3.03		11	%	$30.91		$27.88		$3.03		11	%
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)	U	466,234,324		469,481,085		479,470,543		485,444,313		493,293,981		(3,246,761)		(1	%)	(27,059,657)		(5	%)	475,089,384		475,959,815		(870,431)		—	%
Average common shares outstanding - diluted (GAAP)	V	468,159,167		471,183,719		480,975,281		487,712,146		495,478,398		(3,024,552)		(1)		(27,319,231)		(6)		476,693,148		477,803,142		(1,109,994)		—
Net income per average common share - basic (GAAP)	M/U	$0.34		$0.85		$0.93		$1.00		$1.26		($0.51)		(60)		($0.92)		(73)		$3.14		$4.12		($0.98)		(24)
Net income per average common share - diluted (GAAP)	M/V	0.34		0.85		0.92		1.00		1.25		(0.51)		(60)		(0.91)		(73)		3.13		4.10		(0.97)		(24)
Net income per average common share - basic, Underlying (non-GAAP)	N/U	0.85		0.89		1.04		1.10		1.32		(0.04)		(4)		(0.47)		(36)		3.89		4.86		(0.97)		(20)
Net income per average common share - diluted, Underlying (non-GAAP)	N/V	0.85		0.89		1.04		1.10		1.32		(0.04)		(4)		(0.47)		(36)		3.88		4.84		(0.96)		(20)
Dividend payout ratio and dividend payout ratio, Underlying:
Cash dividends declared and paid per common share	W	$0.42		$0.42		$0.42		$0.42		$0.42		$—		—	%	$—		—	%	$1.68		$1.62		$0.06		4	%
Dividend payout ratio	W/(M/U)	124	%	49	%	45	%	42	%	33	%	7,412 bps				9,053 bps				54	%	39	%	1,450 bps
Dividend payout ratio, Underlying (non-GAAP)	W/(N/U)	49		47		40		38		32		200 bps				1,700 bps				43		33		1,000 bps

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS, CONTINUED

(dollars in millions, except per share data)


	QUARTERLY TRENDS											FULL YEAR
						4Q23 Change								2023 Change
	4Q23	3Q23	2Q23	1Q23	4Q22	3Q23			4Q22			2023	2022	2022
						$	%		$	%				$/bps	%




Other income, Underlying:
Other income (GAAP)	$20	$18	$23	$17	$36	$2	11	%	($16)	(44	%)	$78	$82	($4)	(5	%)
Less: Notable items	—	—	—	—	—	—	—		—	—		—	(31)	31	100
Other income, Underlying (non-GAAP)	$20	$18	$23	$17	$36	$2	11		($16)	(44	%)	$78	$113	($35)	(31	%)
Salaries and employee benefits, Underlying:
Salaries and employee benefits (GAAP)	$667	$659	$615	$658	$633	$8	1	%	$34	5	%	$2,599	$2,549	$50	2	%
Less: Notable items	32	5	14	16	15	27	NM		17	113		67	110	(43)	(39)
Salaries and employee benefits, Underlying (non-GAAP)	$635	$654	$601	$642	$618	($19)	(3	%)	$17	3	%	$2,532	$2,439	$93	4	%
Equipment and software, Underlying:
Equipment and software (GAAP)	$215	$191	$181	$169	$170	$24	13	%	$45	26	%	$756	$648	$108	17	%
Less: Notable items	37	6	4	4	2	31	NM		35	NM		51	10	41	NM
Equipment and software, Underlying (non-GAAP)	$178	$185	$177	$165	$168	($7)	(4	%)	$10	6	%	$705	$638	$67	11	%
Outside services, Underlying:
Outside services (GAAP)	$174	$160	$177	$176	$170	$14	9	%	$4	2	%	$687	$700	($13)	(2	%)
Less: Notable items	13	7	21	27	17	6	86		(4)	(24)		68	113	(45)	(40)
Outside services, Underlying (non-GAAP)	$161	$153	$156	$149	$153	$8	5	%	$8	5	%	$619	$587	$32	5	%
Occupancy, Underlying:
Occupancy (GAAP)	$125	$107	$136	$124	$110	$18	17	%	$15	14	%	$492	$410	$82	20	%
Less: Notable items	20	2	30	18	2	18	NM		18	NM		70	5	65	NM
Occupancy, Underlying (non-GAAP)	$105	$105	$106	$106	$108	$—	—	%	($3)	(3	%)	$422	$405	$17	4	%
Other operating expense, Underlying:
Other operating expense (GAAP)	$431	$176	$197	$169	$157	$255	145	%	$274	175	%	$973	$585	$388	66	%
Less: Notable items	243	2	4	1	7	241	NM		236	NM		250	24	226	NM
Other operating expense, Underlying (non-GAAP)	$188	$174	$193	$168	$150	$14	8	%	$38	25	%	$723	$561	$162	29	%

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS1

(dollars in millions)


		FOURTH QUARTER 2023									THIRD QUARTER 2023

		Consumer Banking		Commercial Banking		Non-Core		Other	Consolidated		Consumer Banking		Commercial Banking		Non-Core		Other	Consolidated
Net income (loss) available to common stockholders:
Net income (loss)	A	$269		$269		($72)		($277)	$189		$276		$260		($67)		($39)	$430
Less: Preferred stock dividends		—		—		—		30	30		—		—		—		30	30
Net income (loss) available to common stockholders	B	$269		$269		($72)		($307)	$159		$276		$260		($67)		($69)	$400
Return on average total tangible assets:
Average total assets (GAAP)		$73,334		$72,758		$11,776		$65,785	$223,653		$72,964		$74,997		$13,113		$59,088	$220,162
Less: Average goodwill (GAAP)		542		770		—		6,876	8,188		542		770		—		6,876	8,188
Average other intangibles (GAAP)		98		35		—		30	163		103		39		—		31	173
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP)		26		10		—		385	421		24		12		—		386	422
Average tangible assets	C	$72,720		$71,963		$11,776		$59,264	$215,723		$72,343		$74,200		$13,113		$52,567	$212,223
Return on average total tangible assets	A/C	1.47	%	1.48	%	(2.42)	%	NM	0.35	%	1.51	%	1.39	%	(2.03)	%	NM	0.81	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$905		$324		$28		$355	$1,612		$905		$325		$30		$33	$1,293
Net interest income (GAAP)		1,086		551		(45)		(104)	1,488		1,067		560		(41)		(64)	1,522
Noninterest income (GAAP)		265		196		—		39	500		278		180		—		34	492
Total revenue (GAAP)	E	$1,351		$747		($45)		($65)	$1,988		$1,345		$740		($41)		($30)	$2,014
Efficiency ratio	D/E	67.08	%	43.44	%	NM		NM	81.13	%	67.18	%	43.93	%	NM		NM	64.21	%


		SECOND QUARTER 2023									FIRST QUARTER 2023

		Consumer Banking		Commercial Banking		Non-Core		Other	Consolidated		Consumer Banking		Commercial Banking		Non-Core		Other	Consolidated
Net income (loss) available to common stockholders:
Net income (loss)	A	$257		$305		($55)		($29)	$478		$257		$319		($50)		($15)	$511
Less: Preferred stock dividends		—		—		—		34	34		—		—		—		23	23
Net income (loss) available to common stockholders	B	$257		$305		($55)		($63)	$444		$257		$319		($50)		($38)	$488
Return on average total tangible assets:
Average total assets (GAAP)		$72,583		$77,546		$14,456		$57,788	$222,373		$71,872		$78,891		$15,686		$56,262	$222,711
Less: Average goodwill (GAAP)		540		766		—		6,876	8,182		538		763		—		6,876	8,177
Average other intangibles (GAAP)		109		41		—		31	181		115		43		—		34	192
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP)		23		11		—		388	422		23		12		—		387	422
Average tangible assets	C	$71,957		$76,750		$14,456		$51,269	$214,432		$71,242		$78,097		$15,686		$49,739	$214,764
Return on average total tangible assets	A/C	1.43	%	1.59	%	(1.53)	%	NM	0.89	%	1.46	%	1.66	%	(1.30)	%	NM	0.97	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$875		$315		$33		$83	$1,306		$857		$331		$32		$76	$1,296
Net interest income (GAAP)		1,023		584		(28)		9	1,588		1,011		597		(15)		50	1,643
Noninterest income (GAAP)		268		207		—		31	506		256		201		—		28	485
Total revenue (GAAP)	E	$1,291		$791		($28)		$40	$2,094		$1,267		$798		($15)		$78	$2,128
Efficiency ratio	D/E	67.74	%	39.76	%	NM		NM	62.34	%	67.70	%	41.47	%	NM		NM	60.90	%

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS, CONTINUED1

(dollars in millions)


		FOURTH QUARTER 2022

		Consumer Banking		Commercial Banking		Non-Core		Other	Consolidated
Net income (loss) available to common stockholders:
Net income (loss)	A	$284		$358		($23)		$34	$653
Less: Preferred stock dividends		—		—		—		32	32
Net income (loss) available to common stockholders	B	$284		$358		($23)		$2	$621
Return on average total tangible assets:
Average total assets (GAAP)		$71,688		$79,591		$16,752		$56,939	$224,970
Less: Average goodwill (GAAP)		491		804		—		6,876	8,171
Average other intangibles (GAAP)		121		46		—		32	199
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP)		7		4		—		413	424
Average tangible assets	C	$71,083		$78,745		$16,752		$50,444	$217,024
Return on average total tangible assets	A/C	1.59	%	1.80	%	(0.54)	%	NM	1.19	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$831		$318		$31		$60	$1,240
Net interest income (GAAP)		1,014		595		19		67	1,695
Noninterest income (GAAP)		256		198		—		51	505
Total revenue (GAAP)	E	$1,270		$793		$19		$118	$2,200
Efficiency ratio	D/E	65.39	%	40.18	%	NM		NM	56.36	%

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS, CONTINUED1

(dollars in millions)


		FULL YEAR
		2023									2022
		Consumer Banking		Commercial Banking		Non-Core		Other	Consolidated		Consumer Banking		Commercial Banking		Non-Core		Other	Consolidated
Net income (loss) available to common stockholders:
Net income (loss)	A	$1,059		$1,153		($244)		($360)	$1,608		$955		$1,304		$142		($328)	$2,073
Less: Preferred stock dividends		—		—		—		117	117		—		—		—		113	113
Net income (loss) available to common stockholders	B	$1,059		$1,153		($244)		($477)	$1,491		$955		$1,304		$142		($441)	$1,960
Return on average total tangible assets:
Average total assets (GAAP)		$72,693		$76,028		$13,745		$59,755	$222,221		$68,027		$74,919		$18,121		$53,994	$215,061
Less: Average goodwill (GAAP)		540		767		—		6,877	8,184		388		616		—		6,868	7,872
Average other intangibles (GAAP)		106		39		—		32	177		88		30		—		63	181
Add: Average deferred tax liabilities related to goodwill and other intangible assets (GAAP)		24		11		—		387	422		6		2		—		405	413
Average tangible assets	C	$72,071		$75,233		$13,745		$53,233	$214,282		$67,557		$74,275		$18,121		$47,468	$207,421
Return on average total tangible assets	A/C	1.47	%	1.53	%	(1.78)	%	NM	0.75	%	1.41	%	1.76	%	0.78	%	NM	1.00	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$3,542		$1,295		$123		$547	$5,507		$3,255		$1,223		$136		$278	$4,892
Net interest income (GAAP)		4,187		2,292		(129)		(109)	6,241		3,649		2,103		378		(118)	6,012
Noninterest income (GAAP)		1,067		784		—		132	1,983		1,063		845		—		101	2,009
Total revenue (GAAP)	E	$5,254		$3,076		($129)		$23	$8,224		$4,712		$2,948		$378		($17)	$8,021
Efficiency ratio	D/E	67.42	%	42.10	%	NM		NM	66.97	%	69.08	%	41.50	%	NM		NM	60.99	%