Open the filing on EDGARFirst Horizon Corporation Delivers Strong First Quarter 2026 Results
with Net Income Available to Common Shareholders of $257 Million, up 21% year-over-year
and EPS of $0.53, up $0.12 from First Quarter 2025
MEMPHIS, TN (April 15, 2026) - First Horizon Corporation (NYSE: FHN or “First Horizon”) today reported first quarter net income available to common shareholders ("NIAC") of $257 million or earnings per share of $0.53, compared with fourth quarter 2025 NIAC of $257 million or earnings per share of $0.52 and first quarter 2025 NIAC of $213 million or earnings per share of $0.41. Return on tangible common equity grew to 15.1% in the quarter.*
"We are pleased to deliver adjusted return on tangible common equity* of 15%+ for the third consecutive quarter, a key measure of value creation for shareholders," said Chairman, President and CEO Bryan Jordan. "These results reflect disciplined execution across our footprint and lines of business."
Jordan continued, "Year-over-year, tangible book value per share* increased 9% and net income available to common shareholders grew 21%. We achieved this by creating revenue through relationship banking, maintaining expense discipline, and executing with a strong credit culture. Safety and soundness, profitability, and growth remain our top priorities to create meaningful value for our clients, communities, and shareholders."
Notable Items
| Notable Items | | | |
| Quarterly, Unaudited ($ in millions, except per share data) | 1Q26 | 4Q25 | 1Q25 |
| Summary of Notable Items: | | | |
| FDIC special assessment (other noninterest expense) | $ - | $7 | $(1) |
| Other notable expenses | - | (10) | (5) |
| Total notable items (pre-tax) | $ - | $(3) | $(6) |
| Tax on notable items before preferred stock dividends | $ - | $1 | $1 |
| Total notable items (after-tax) | $ - | $(2) | $(4) |
| Numbers may not total due to rounding. | | | |
* "Adjusted" results, along with return on tangible common equity, tangible book value per share, and certain other financial measures, are non-GAAP financial measures. All references to loans include leases. All references to earnings per share are based on diluted shares. NII, total revenue, NIM, and PPNR are presented on a fully taxable equivalent ("FTE") basis. Capital ratios are preliminary. Please see page 4 for information on our use of non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 20.
First Quarter 2026 versus Fourth Quarter 2025
Net interest income
Net interest income (FTE) decreased $9 million to $670 million and net interest margin of 3.52% increased 1 basis point. The NII decrease was primarily driven by day count changes from the prior quarter. Deposit repricing performance offset declines in loan yields to expand net interest margin.
Noninterest income
Noninterest income decreased $18 million to $195 million, driven by decreases of $6 million in service charges,
$5 million in deferred compensation income, and $4 million in fixed income.
Noninterest expense
Noninterest expense of $505 million decreased $40 million from the prior quarter. This includes a $26 million decrease in outside services, primarily driven by technology projects completed in the prior quarter and seasonally reduced marketing expenses, an $8 million decrease in incentives and commissions expenses related to accruals in the prior quarter, and a $5 million decrease in deferred compensation expenses.
Loans and leases
Average loan and lease balances of $63.2 billion decreased $240 million from the prior quarter, while period-end balances were $64.4 billion, up $221 million from fourth quarter 2025. Loans to mortgage companies (LMC) declined by $62 million at period-end, and other C&I balances increased by $624 million. The increase in C&I balances was partially offset by declines in consumer and CRE loan balances. Loan yields of 5.68% decreased 15 basis points, driven by the 25 basis point Fed rate cut in December 2025.
Deposits
Average deposits of $66.2 billion decreased $332 million from fourth quarter 2025. Period-end deposits of $66.5 billion decreased $1.0 billion, driven by a $1.1 billion decrease in interest bearing deposits. Interest-bearing deposit cost of 2.28% decreased 25 basis points from the prior quarter, with a spot rate of approximately 2.27% at the end of the quarter.
Asset quality
Provision for credit losses expense was $15 million, compared to zero in fourth quarter 2025. Net charge-offs were $29 million or 18 basis points, down slightly from $30 million or 19 basis points in the prior quarter. Nonperforming loans of $606 million increased $2 million. The ACL to loans ratio decreased from 1.31% in fourth quarter 2025 to 1.28%, driven by the continued positive resolution of non-pass loans, which are down over 20% year-over-year.
Capital
CET1 ratio was 10.53%, a 10 basis point decline from the fourth quarter 2025. Capital was deployed into loan growth as well as share repurchases, which totaled $233 million at an average price of $24.54 per share including commissions. Tier 1 and total capital ratios increased from the previous quarter, driven by the $400 million Series H Preferred Stock issuance in March 2026.
Income taxes
The first quarter 2026 tax rate was 22.2%, compared to an effective tax rate of 22.6% and an adjusted tax rate of 22.7% in the previous quarter.
| | | | 1Q26 Change vs. |
|---|
| SUMMARY RESULTS | | | | | | | |
| Quarterly, Unaudited | | | | | | | |
| ($ in millions, except per share and balance sheet data) | 1Q26 | 4Q25 | 1Q25 | 4Q25 | 1Q25 |
| | | | $/bp | % | $/bp | % |
| Income Statement | | | | | | | |
| Interest income - taxable equivalent | $1,008 | $1,054 | $1,017 | $(47) | (4)% | | $(10) | (1)% |
| Interest expense- taxable equivalent | 337 | 375 | 383 | (38) | (10) | | (46) | (12) |
| Net interest income- taxable equivalent | 670 | 679 | 634 | (9) | (1) | | 36 | 6 |
| Less: Taxable-equivalent adjustment | 3 | 3 | 3 | - | (10) | | - | (12) |
| Net interest income | 667 | 676 | 631 | (9) | (1) | | 36 | 6 |
| Noninterest income | 195 | 212 | 181 | (18) | (8) | | 13 | 7 |
| Total revenue | 862 | 888 | 812 | (26) | (3) | | 50 | 6 |
| Noninterest expense | 505 | 545 | 488 | (40) | (7) | | 17 | 4 |
| Pre-provision net revenue | 357 | 343 | 325 | 14 | 4 | | 32 | 10 |
| Provision for credit losses | 15 | - | 40 | 15 | | NM | (25) | (63) |
| Income before income taxes | 342 | 343 | 285 | (1) | - | | 57 | 20 |
| Provision for income taxes | 76 | 78 | 63 | (2) | (2) | | 13 | 22 |
| Net income | 266 | 266 | 222 | - | - | | 44 | 20 |
| Net income attributable to noncontrolling interest | 3 | 4 | 4 | - | (12) | | (1) | (14) |
| Net income attributable to controlling interest | 263 | 262 | 218 | 1 | - | | 44 | 20 |
| Preferred stock dividends | 5 | 5 | 5 | - | - | | - | - |
| Net income available to common shareholders | $257 | $257 | $213 | $1 | - % | | $44 | 21% |
| Adjusted net income | $266 | $268 | $227 | $(2) | (1)% | | $39 | 17% |
| Adjusted net income available to common shareholders | $257 | $259 | $217 | $(2) | (1)% | | $40 | 18% |
| Common stock information | | | | | | | |
| EPS | $0.53 | $0.52 | $0.41 | $0.01 | 2% | | $0.12 | 29% |
| Adjusted EPS | $0.53 | $0.52 | $0.42 | $0.01 | 2% | | $0.11 | 26% |
| Diluted shares | 487 | 496 | 523 | (10) | (2)% | | (37) | (7)% |
| Key performance metrics | | | | | | | |
| Net interest margin | 3.52% | 3.51% | 3.42% | 1bp | | 10bp | |
| Efficiency ratio | 58.54 | 61.33 | 60.06 | (279)bp | | (152)bp | |
| Adjusted efficiency ratio | 58.34 | 60.73 | 59.09 | (239)bp | | (75)bp | |
| Effective income tax rate | 22.21 | 22.64 | 21.96 | (43)bp | | 25bp | |
| Return on average assets | 1.30 | 1.27 | 1.11 | 3bp | | 19bp | |
| Adjusted return on average assets | 1.30 | 1.28 | 1.14 | 2bp | | 16bp | |
| Return on average common equity (“ROCE") | 12.3 | 12.0 | 10.3 | 27bp | | 196bp | |
| Return on average tangible common equity (“ROTCE”) | 15.1 | 14.8 | 12.8 | 31bp | | 231bp | |
| Adjusted ROTCE | 15.1 | 15.0 | 13.1 | 16bp | | 204bp | |
| Noninterest income as a % of total revenue | 22.63 | 23.89 | 22.29 | (126)bp | | 34bp | |
| Adjusted noninterest income as a % of total revenue | 22.55% | 23.80% | 22.20% | (125)bp | | 35bp | |
| Balance Sheet (billions) | | | | | | | |
| Average loans | $63.2 | $63.4 | $61.6 | $(0.2) | - % | | $1.5 | 3% |
| Average deposits | 66.2 | 66.5 | 64.5 | (0.3) | - | | 1.7 | 3 |
| Average assets | 83.0 | 83.1 | 81.0 | - | - | | 2.1 | 3 |
| Average common equity | $8.5 | $8.5 | $8.4 | $ - | - % | | $0.1 | 1% |
| Asset Quality Highlights | | | | | | | |
| Allowance for credit losses to loans and leases | 1.28% | 1.31% | 1.45% | (3)bp | | (17)bp | |
| Nonperforming loans and leases ratio | 0.94% | 0.94% | 0.98% | - bp | | (4)bp | |
| Net charge-off ratio | 0.18% | 0.19% | 0.19% | (1)bp | | (1)bp | |
| Net charge-offs | $29 | $30 | $29 | $(2) | (6)% | | $ - | (2)% |
| Capital Ratio Highlights (current quarter is an estimate) | | | | | | | |
| Common Equity Tier 1 | 10.5% | 10.6% | 10.9% | (10)bp | | (40)bp | |
| Tier 1 | 11.9 | 11.5 | 11.9 | 44bp | | - bp | |
| Total Capital | 13.7 | 13.3 | 14.1 | 39bp | | (32)bp | |
| Tier 1 leverage | 10.6% | 10.2% | 10.5% | 44bp | | 14bp | |
Forward-Looking Statements
Forward-looking statements notice
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to FHN's beliefs, plans, goals, expectations, and estimates. Forward-looking statements are not a representation of historical information, but instead pertain to future operations, strategies, financial results, or other developments. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “should,” “is likely,” “will,” “going forward,” and other similar expressions that indicate future events and trends. Forward-looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, operational, economic, and competitive uncertainties and contingencies, many of which are beyond FHN’s control, and many of which, with respect to future business decisions and actions (including acquisitions and divestitures), are subject to change and could cause FHN’s actual future results and outcomes to differ materially from those contemplated or implied by forward-looking statements or historical performance. While there is no assurance that any list of uncertainties and contingencies is complete, examples of factors which could cause actual results to differ from those contemplated by forward-looking statements or historical performance include those mentioned: in this document; in Items 2.02 and 7.01 of FHN’s Current Report on Form 8-K to which this document has been furnished as an exhibit; in the forepart, and in Items 1, 1A, and 7, of FHN’s most recent Annual Report on Form 10-K; and in the forepart, and in Item 1A of Part II, of FHN’s Quarterly Report(s) on Form 10-Q filed after that Annual Report. Any forward-looking statements made by or on behalf of FHN speak only as of the date they are made, and FHN assumes no obligation to update or revise any forward-looking statements that are made in this document or in any other statement, release, report, or filing from time to time. Actual results could differ and expectations could change, possibly materially, because of one or more factors, including those factors listed in this document or the documents mentioned above, and other factors not listed.
Throughout this document, numbers may not total due to rounding, references to EPS are fully diluted, and capital ratios for the most recent quarter are estimates.
Use of non-GAAP Measures and Regulatory Measures that are not GAAP
Certain measures included in this report are “non-GAAP,” meaning they are not presented in accordance with generally accepted accounting principles in the U.S. and also are not codified in U.S. banking regulations currently applicable to FHN. Although other entities may use calculation methods that differ from those used by FHN for non-GAAP measures, FHN’s management believes such measures are relevant to understanding the financial condition, capital position, and financial results of FHN and its business segments. Non-GAAP measures are reported to FHN’s management and Board of Directors through various internal reports.
The non-GAAP measures presented in this earnings release are fully taxable equivalent measures, pre-provision net revenue ("PPNR"), return on average tangible common equity (“ROTCE”), tangible common equity (“TCE”) to tangible assets (“TA”), tangible book value ("TBV") per common share, and various consolidated and segment results and performance measures and ratios adjusted for notable items.
Presentation of regulatory measures, even those which are not GAAP, provides a meaningful basis for comparability to other financial institutions subject to the same regulations as FHN, as demonstrated by their use by banking regulators in reviewing capital adequacy of financial institutions. Although not GAAP terms, these regulatory measures are not considered “non-GAAP” under U.S. financial reporting rules as long as their presentation conforms to regulatory standards. Regulatory measures used in this financial supplement include: common equity tier 1 capital ("CET1"), generally defined as common equity less goodwill, other intangibles, and certain other required regulatory deductions; tier 1 capital, generally defined as the sum of core capital (including common equity and instruments that cannot be redeemed at the option of the holder) adjusted for certain items under risk based capital regulations; and risk-weighted assets, which is a measure of total on- and off-balance sheet assets adjusted for credit and market risk, used to determine regulatory capital ratios.
Refer to the tabular reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items, beginning on page 20.
Conference Call Information
Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on April 15, 2026, by dialing 1-833-470-1428 (if calling from the U.S.) and entering access code 672268. The conference call will begin at 8:30 a.m. CT.
Participants can also opt to listen to the live audio webcast at https://ir.firsthorizon.com/events-and-presentations/default.aspx.
A replay of the call will be available beginning at noon CT on April 15 until midnight CT on April 29, 2026. To listen to the replay, dial 1-866-813-9403 (U.S. callers); the access code is 513284. A replay of the webcast will also be available on our website on April 15 and will be archived on the site for one year.
First Horizon Corporation (NYSE: FHN), with $84.1 billion in assets as of March 31, 2026, is a leading regional financial services company, dedicated to helping our clients, communities and associates unlock their full potential with capital and counsel. Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates in 12 states concentrated in the southern U.S. The Company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services. First Horizon has been recognized as one of the nation's best employers by Fortune and Forbes magazines and a Top 10 Most Reputable U.S. Bank. More information is available at www.FirstHorizon.com.
Contact: Investor Relations - Tyler Craft - Tyler.Craft@firsthorizon.com
Media Relations - Beth Ardoin - Beth.Ardoin@firsthorizon.com
| | | | | | 1Q26 Change vs. |
|---|
| CONSOLIDATED INCOME STATEMENT | | | | | | | | | |
| Quarterly, Unaudited | | | | | | | | | |
| ($ in millions, except per share data) | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 4Q25 | 1Q25 |
| Interest income - taxable equivalent | $1,008 | $1,054 | $1,081 | $1,047 | $1,017 | $(47) | (4)% | | $(10) | (1)% | |
| Interest expense- taxable equivalent | 337 | 375 | 403 | 403 | 383 | (38) | (10) | | (46) | (12) | |
| Net interest income- taxable equivalent | 670 | 679 | 678 | 645 | 634 | (9) | (1) | | 36 | 6 | |
| Less: Taxable-equivalent adjustment | 3 | 3 | 3 | 4 | 3 | - | (10) | | - | (12) | |
| Net interest income | 667 | 676 | 674 | 641 | 631 | (9) | (1) | | 36 | 6 | |
| Noninterest income: | | | | | | | | | |
| Fixed income | 53 | 57 | 57 | 42 | 49 | (4) | (7) | | 4 | 8 | |
| Mortgage banking | 9 | 10 | 15 | 10 | 8 | (1) | (10) | | 1 | 13 | |
| Brokerage, trust, and insurance | 43 | 41 | 39 | 39 | 38 | 1 | 3 | | 5 | 12 | |
| Service charges and fees | 58 | 64 | 57 | 55 | 52 | (6) | (9) | | 6 | 11 | |
| Card and digital banking fees | 18 | 18 | 19 | 19 | 18 | - | (1) | | 1 | 4 | |
| Deferred compensation income | (3) | 3 | 8 | 8 | (3) | (5) | | NM | - | (1) | |
| Securities gains/(losses) | (1) | - | - | - | - | (1) | | NM | (1) | | NM |
| Other noninterest income | 16 | 18 | 19 | 16 | 18 | (2) | (11) | | (2) | (11) | |
| Total noninterest income | 195 | 212 | 215 | 189 | 181 | (18) | (8) | | 13 | 7 | |
| Total revenue | 862 | 888 | 889 | 830 | 812 | (26) | (3) | | 50 | 6 | |
| Noninterest expense: | | | | | | | | | |
| Personnel expense: | | | | | | | | | |
| Salaries and benefits | 211 | 213 | 209 | 206 | 201 | (2) | (1) | | 10 | 5 | |
| Incentives and commissions | 79 | 87 | 79 | 73 | 81 | (8) | (9) | | (1) | (2) | |
| Deferred compensation expense | (2) | 3 | 8 | 3 | (3) | (5) | | NM | 1 | 47 | |
| Total personnel expense | 289 | 303 | 296 | 282 | 279 | (14) | (5) | | 10 | 4 | |
| Occupancy and equipment | 84 | 83 | 80 | 79 | 78 | 1 | 2 | | 6 | 8 | |
| Outside services | 69 | 95 | 79 | 71 | 63 | (26) | (27) | | 6 | 9 | |
| Amortization of intangible assets | 8 | 9 | 9 | 10 | 10 | (1) | (8) | | (2) | (16) | |
| Other noninterest expense | 55 | 55 | 87 | 50 | 58 | - | - | | (3) | (5) | |
| Total noninterest expense | 505 | 545 | 551 | 491 | 488 | (40) | (7) | | 17 | 4 | |
| Pre-provision net revenue | 357 | 343 | 339 | 339 | 325 | 14 | 4 | | 32 | 10 | |
| Provision for credit losses | 15 | - | (5) | 30 | 40 | 15 | | NM | (25) | (63) | |
| Income before income taxes | 342 | 343 | 344 | 309 | 285 | (1) | - | | 57 | 20 | |
| Provision for income taxes | 76 | 78 | 78 | 64 | 63 | (2) | (2) | | 13 | 22 | |
| Net income | 266 | 266 | 266 | 244 | 222 | - | - | | 44 | 20 | |
| Net income attributable to noncontrolling interest | 3 | 4 | 4 | 4 | 4 | - | (12) | | (1) | (14) | |
| Net income attributable to controlling interest | 263 | 262 | 262 | 240 | 218 | 1 | - | | 44 | 20 | |
| Preferred stock dividends | 5 | 5 | 8 | 8 | 5 | - | - | | - | - | |
| Net income available to common shareholders | $257 | $257 | $254 | $233 | $213 | $1 | - % | | $44 | 21% | |
| Common Share Data | | | | | | | | | |
| EPS | $0.54 | $0.52 | $0.50 | $0.46 | $0.41 | $0.02 | 4% | | $0.13 | 32% | |
| Basic shares | 480 | 491 | 505 | 508 | 517 | (10) | (2) | | (37) | (7) | |
| Diluted EPS | $0.53 | $0.52 | $0.50 | $0.45 | $0.41 | $0.01 | 2 | | $0.12 | 29 | |
| Diluted shares | 487 | 496 | 510 | 514 | 523 | (10) | (2)% | | (37) | (7)% | |
| Effective tax rate | 22.2% | 22.6% | 22.7% | 20.8% | 22.0% | | | | |
ADJUSTEDFINANCIAL DATA - SEE NOTABLE ITEMS ON PAGE 8
| | | | | | 1Q26 Change vs. |
|---|
| ($ in millions, except per share data) | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 4Q25 | 1Q25 |
| Net interest income (FTE) | $670 | $679 | $678 | $645 | $634 | $(9) | (1)% | | $36 | 6% | |
| Adjusted noninterest income: | | | | | | | | | |
| Fixed income | 53 | 57 | 57 | 42 | 49 | (4) | (7) | | 4 | 8 | |
| Mortgage banking | 9 | 10 | 15 | 10 | 8 | (1) | (10) | | 1 | 13 | |
| Brokerage, trust, and insurance | 43 | 41 | 39 | 39 | 38 | 1 | 3 | | 5 | 12 | |
| Service charges and fees | 58 | 64 | 57 | 55 | 52 | (6) | (9) | | 6 | 11 | |
| Card and digital banking fees | 18 | 18 | 19 | 19 | 18 | - | (1) | | 1 | 4 | |
| Deferred compensation income | (3) | 3 | 8 | 8 | (3) | (5) | | NM | - | (1) | |
| Adjusted securities gains/(losses) | (1) | - | - | - | - | (1) | | NM | (1) | | NM |
| Adjusted other noninterest income | 16 | 18 | 19 | 16 | 18 | (2) | (11) | | (2) | (11) | |
| Adjusted total noninterest income | $195 | $212 | $215 | $189 | $181 | $(18) | (8)% | | $13 | 7% | |
| Total revenue (FTE) | $865 | $892 | $893 | $833 | $816 | $(26) | (3)% | | $49 | 6% | |
| Adjusted noninterest expense: | | | | | | | | | |
| Adjusted personnel expense: | | | | | | | | | |
| Adjusted salaries and benefits | $211 | $213 | $209 | $206 | $201 | $(2) | (1)% | | $10 | 5% | |
| Adjusted Incentives and commissions | 79 | 87 | 79 | 73 | 81 | (8) | (9) | | (1) | (2) | |
| Deferred compensation expense | (2) | 3 | 8 | 7 | (3) | (5) | | NM | 1 | 47 | |
| Adjusted total personnel expense | 289 | 303 | 296 | 286 | 279 | (14) | (5) | | 10 | 4 | |
| Adjusted occupancy and equipment | 84 | 83 | 80 | 79 | 78 | 1 | 2 | | 6 | 8 | |
| Adjusted outside services | 69 | 95 | 79 | 71 | 63 | (26) | (27) | | 6 | 9 | |
| Amortization of intangible assets | 8 | 9 | 9 | 10 | 10 | (1) | (8) | | (2) | (16) | |
| Adjusted other noninterest expense | 55 | 52 | 79 | 50 | 52 | 3 | 6 | | 3 | 6 | |
| Adjusted total noninterest expense | $505 | $541 | $542 | $495 | $482 | $(36) | (7)% | | $23 | 5% | |
| Adjusted pre-provision net revenue | $360 | $350 | $351 | $338 | $334 | $10 | 3% | | $26 | 8% | |
| Provision for credit losses | $15 | $ - | $(5) | $30 | $40 | $15 | | NM | $(25) | (63)% | |
| Adjusted net income available to common shareholders | $257 | $259 | $263 | $229 | $217 | $(2) | (1)% | | $40 | 18% | |
| Adjusted Common Share Data | | | | | | | | | |
| Adjusted diluted EPS | $0.53 | $0.52 | $0.51 | $0.45 | $0.42 | $0.01 | 2% | | $0.11 | 26% | |
| Diluted shares | 487 | 496 | 510 | 514 | 523 | (10) | (2)% | | (37) | (7)% | |
| Adjusted effective tax rate | 22.2% | 22.7% | 22.7% | 20.8% | 22.0% | | | | |
| Adjusted ROTCE | 15.1% | 15.0% | 15.0% | 13.6% | 13.1% | | | | |
| Adjusted efficiency ratio | 58.3% | 60.7% | 60.8% | 59.5% | 59.1% | | | | |
NOTABLE ITEMS
| (In millions) | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 |
| Summary of Notable Items: | | | | | |
| Deferred compensation adjustment | $ - | $ - | $ - | $4 | $ - |
| FDIC special assessment (other noninterest expense) | - | 7 | 2 | 1 | (1) |
| Other notable expenses * | - | (10) | (10) | - | (5) |
| Total notable items (pre-tax) | $ - | $(3) | $(8) | $4 | $(6) |
| Tax-related notable items | $ - | $ - | $ - | $ - | $ - |
| Preferred Stock Dividend ** | $ - | $ - | $(3) | $ - | $ - |
* 4Q25 and 3Q25 each include $10 million of Visa derivative valuation expenses and 1Q25 includes $5 million.
** 3Q25 includes $3 million deemed dividends on the redemption of $80 million par value of Series B Preferred Stock.
IMPACT OF NOTABLE ITEMS:
| ($ in millions, except per share data) | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 |
| Impacts of Notable Items: | | | | | |
| Noninterest expense: | | | | | |
| Personnel expenses: | | | | | |
| Deferred compensation expense | $ - | $ - | $ - | $4 | $ - |
| Total personnel expenses | - | - | - | 4 | - |
| Outside services | - | - | - | - | - |
| Other noninterest expense | - | (3) | (8) | 1 | (6) |
| Total noninterest expense | $ - | $(3) | $(8) | $4 | $(6) |
| Income before income taxes | $ - | $3 | $8 | $(4) | $6 |
| Provision for income taxes | - | 1 | 2 | (1) | 1 |
| Preferred stock dividends * | - | - | (3) | - | - |
| Net income/(loss) available to common shareholders | $ - | $2 | $9 | $(3) | $4 |
| EPS impact of notable items | $ - | $ - | $0.01 | $ - | $0.01 |
* 3Q25 includes $3 million deemed dividends on the redemption of $80 million par value of Series B Preferred Stock.
| | | | | | 1Q26 Change vs. |
|---|
| 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 4Q25 | 1Q25 |
|---|
| FINANCIAL RATIOS | | | | | | | | | |
| Quarterly, Unaudited | | | | | | | | | |
| FINANCIAL RATIOS | | | | | | $/bp | % | $/bp | % |
| Net interest margin | 3.52% | 3.51% | 3.55% | 3.40% | 3.42% | 1bp | | 10bp | |
| Return on average assets | 1.30% | 1.27% | 1.29% | 1.20% | 1.11% | 3bp | | 19bp | |
| Adjusted return on average assets | 1.30% | 1.28% | 1.32% | 1.18% | 1.14% | 2bp | | 16bp | |
| Return on average common equity (“ROCE”) | 12.26% | 11.99% | 11.74% | 11.14% | 10.30% | 27bp | | 196bp | |
| Return on average tangible common equity (“ROTCE”) | 15.12% | 14.82% | 14.49% | 13.85% | 12.81% | 31bp | | 231bp | |
| Adjusted ROTCE | 15.12% | 14.96% | 15.00% | 13.65% | 13.08% | 16bp | | 204bp | |
| Noninterest income as a % of total revenue | 22.63% | 23.89% | 24.16% | 22.73% | 22.29% | (126)bp | | 34bp | |
| Adjusted noninterest income as a % of total revenue | 22.55% | 23.80% | 24.07% | 22.63% | 22.20% | (125)bp | | 35bp | |
| Efficiency ratio | 58.54% | 61.33% | 61.92% | 59.20% | 60.06% | (279)bp | | (152)bp | |
| Adjusted efficiency ratio | 58.34% | 60.73% | 60.76% | 59.47% | 59.09% | (239)bp | | (75)bp | |
| Allowance for credit losses to loans and leases | 1.28% | 1.31% | 1.38% | 1.42% | 1.45% | (3)bp | | (17)bp | |
| CAPITAL DATA | | | | | | | | | |
| CET1 capital ratio* | 10.5% | 10.6% | 11.0% | 11.0% | 10.9% | (10)bp | | (40)bp | |
| Tier 1 capital ratio* | 11.9% | 11.5% | 11.9% | 12.0% | 11.9% | 44bp | | - bp | |
| Total capital ratio* | 13.7% | 13.3% | 13.8% | 14.0% | 14.1% | 39bp | | (32)bp | |
| Tier 1 leverage ratio* | 10.6% | 10.2% | 10.5% | 10.6% | 10.5% | 44bp | | 14bp | |
| Risk-weighted assets (“RWA”) (billions)* | $73.3 | $73.0 | $72.0 | $71.7 | $70.8 | $0.3 | - % | $2.5 | 4% |
| Total equity to total assets | 11.25% | 10.90% | 11.11% | 11.28% | 11.10% | 35bp | | 15bp | |
| Tangible common equity/tangible assets (“TCE/TA”) | 8.27% | 8.37% | 8.55% | 8.58% | 8.37% | (10)bp | | (10)bp | |
| Period-end shares outstanding (millions) | 476 | 485 | 500 | 509 | 507 | (9) | (2)% | (31) | (6)% |
| Cash dividends declared per common share | $0.17 | $0.15 | $0.15 | $0.15 | $0.15 | $0.02 | 13% | $0.02 | 13% |
| Book value per common share | $17.72 | $17.53 | $17.19 | $16.78 | $16.40 | $0.19 | 1% | $1.32 | 8% |
| Tangible book value per common share | $14.34 | $14.20 | $13.94 | $13.57 | $13.17 | $0.14 | 1% | $1.17 | 9% |
| SELECTED BALANCE SHEET DATA | | | | | | | | | |
| Loans-to-deposit ratio (period-end balances) | 96.83% | 95.08% | 96.23% | 96.47% | 96.90% | 175bp | | (7)bp | |
| Loans-to-deposit ratio (average balances) | 95.44% | 95.33% | 95.24% | 96.62% | 95.57% | 11bp | | (13)bp | |
| Full-time equivalent associates | 7,369 | 7,373 | 7,341 | 7,255 | 7,190 | (4) | - % | 179 | 2% |
*Current quarter is an estimate.
CONSOLIDATED PERIOD-END BALANCE SHEET
| | | | | | 1Q26 Change vs. |
|---|
| (In millions) | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 4Q25 | 1Q25 |
| Assets: | | | | | | $ | % | $ | % |
| Loans and leases: | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | $36,467 | $35,905 | $34,401 | $34,359 | $33,354 | $562 | 2% | | $3,113 | 9% |
| Commercial real estate | 13,420 | 13,563 | 13,674 | 13,936 | 14,139 | (143) | (1) | | (719) | (5) |
| Total Commercial | 49,887 | 49,468 | 48,076 | 48,295 | 47,493 | 419 | 1 | | 2,394 | 5 |
| Consumer real estate | 13,928 | 14,107 | 14,403 | 14,368 | 14,089 | (179) | (1) | | (160) | (1) |
| Credit card and other | 562 | 580 | 579 | 597 | 633 | (19) | (3) | | (72) | (11) |
| Total Consumer | 14,490 | 14,688 | 14,982 | 14,965 | 14,722 | (198) | (1) | | (232) | (2) |
| Loans and leases, net of unearned income | 64,377 | 64,156 | 63,058 | 63,260 | 62,215 | 221 | - | | 2,162 | 3 |
| Loans held for sale | 562 | 406 | 501 | 402 | 510 | 156 | 38 | | 53 | 10 |
| Investment securities | 9,351 | 9,382 | 9,332 | 9,362 | 9,333 | (31) | - | | 17 | - |
| Trading securities | 1,812 | 1,904 | 2,070 | 1,430 | 1,376 | (92) | (5) | | 436 | 32 |
| Interest-bearing deposits with banks | 1,116 | 1,125 | 1,228 | 911 | 1,164 | (9) | (1) | | (49) | (4) |
| Federal funds sold and securities purchased under agreements to resell | 754 | 634 | 774 | 527 | 728 | 120 | 19 | | 26 | 4 |
| Total interest earning assets | 77,971 | 77,606 | 76,963 | 75,893 | 75,326 | 365 | - | | 2,645 | 4 |
| Cash and due from banks | 889 | 961 | 912 | 988 | 915 | (72) | (7) | | (26) | (3) |
| Goodwill and other intangible assets, net | 1,607 | 1,615 | 1,624 | 1,633 | 1,643 | (8) | (1) | | (36) | (2) |
| Premises and equipment, net | 539 | 544 | 553 | 561 | 569 | (5) | (1) | | (30) | (5) |
| Allowance for loan and lease losses | (730) | (738) | (777) | (814) | (822) | 9 | 1 | | 93 | 11 |
| Other assets | 3,855 | 3,889 | 3,916 | 3,823 | 3,861 | (33) | (1) | | (5) | - |
| Total assets | $84,132 | $83,876 | $83,192 | $82,084 | $81,491 | $256 | - % | | $2,640 | 3% |
| Liabilities and Shareholders' Equity: | | | | | | | | | |
| Deposits: | | | | | | | | | |
| Savings | $26,007 | $26,010 | $26,365 | $25,939 | $26,242 | $(3) | - % | | $(235) | (1)% |
| Time deposits | 7,125 | 6,485 | 6,201 | 7,270 | 5,918 | 640 | 10 | | 1,207 | 20 |
| Other interest-bearing deposits | 17,440 | 19,158 | 16,936 | 16,477 | 16,213 | (1,718) | (9) | | 1,227 | 8 |
| Total interest-bearing deposits | 50,572 | 51,653 | 49,502 | 49,685 | 48,373 | (1,081) | (2) | | 2,199 | 5 |
| Trading liabilities | 666 | 607 | 662 | 469 | 670 | 59 | 10 | | (4) | (1) |
| Federal funds purchased and securities sold under agreements to repurchase | 2,193 | 3,012 | 2,675 | 3,201 | 2,572 | (819) | (27) | | (378) | (15) |
| Short-term borrowings | 1,975 | 241 | 1,596 | 260 | 1,223 | 1,733 | | NM | 752 | 61 |
| Term borrowings | 1,318 | 1,321 | 1,328 | 1,342 | 1,691 | (2) | - | | (372) | (22) |
| Total interest-bearing liabilities | 56,725 | 56,835 | 55,763 | 54,957 | 54,529 | (110) | - | | 2,196 | 4 |
| Noninterest-bearing deposits | 15,910 | 15,823 | 16,023 | 15,892 | 15,835 | 87 | 1 | | 75 | - |
| Other liabilities | 2,032 | 2,076 | 2,163 | 1,978 | 2,084 | (44) | (2) | | (52) | (2) |
| Total liabilities | 74,667 | 74,734 | 73,948 | 72,826 | 72,447 | (67) | - | | 2,220 | 3 |
| Shareholders' Equity: | | | | | | | | | |
| Preferred stock | 741 | 349 | 349 | 426 | 426 | 392 | 112 | | 314 | 74 |
| Common stock | 297 | 303 | 313 | 318 | 317 | (6) | (2) | | (20) | (6) |
| Capital surplus | 3,759 | 3,974 | 4,288 | 4,459 | 4,472 | (215) | (5) | | (713) | (16) |
| Retained earnings | 5,205 | 5,030 | 4,848 | 4,671 | 4,516 | 175 | 3 | | 689 | 15 |
| Accumulated other comprehensive loss, net | (832) | (809) | (849) | (912) | (983) | (23) | (3) | | 151 | 15 |
| Combined shareholders' equity | 9,170 | 8,847 | 8,949 | 8,962 | 8,749 | 323 | 4 | | 421 | 5 |
| Noncontrolling interest | 295 | 295 | 295 | 295 | 295 | - | - | | - | - |
| Total shareholders' equity | 9,465 | 9,142 | 9,244 | 9,257 | 9,044 | 323 | 4 | | 421 | 5 |
| Total liabilities and shareholders' equity | $84,132 | $83,876 | $83,192 | $82,084 | $81,491 | $256 | - % | | $2,640 | 3% |
| Memo: | | | | | | | | | |
| Total deposits | $66,482 | $67,477 | $65,525 | $65,576 | $64,208 | $(994) | (1)% | | $2,275 | 4% |
| Loans to mortgage companies | $4,641 | $4,703 | $3,926 | $4,058 | $3,369 | $(62) | (1)% | | $1,272 | 38% |
| Unfunded Loan Commitments: | | | | | | | | | |
| Commercial | $18,980 | $18,644 | $18,485 | $17,784 | $17,974 | $337 | 2% | | $1,007 | 6% |
| Consumer | $4,022 | $4,002 | $4,036 | $4,153 | $4,190 | $21 | 1% | | $(168) | (4)% |
Numbers may not total due to rounding. See footnote disclosures on page 19 and glossary of terms on page 25.
CONSOLIDATED AVERAGE BALANCE SHEET
| | | | | | 1Q26 Change vs. |
|---|
| (In millions) | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 4Q25 | 1Q25 |
| Assets: | | | | | | $ | % | $ | % |
| Loans and leases: | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | $35,208 | $35,005 | $34,011 | $33,634 | $32,632 | $203 | 1% | $2,576 | 8% |
| Commercial real estate | 13,417 | 13,587 | 13,772 | 14,070 | 14,318 | (170) | (1) | (901) | (6) |
| Total Commercial | 48,625 | 48,591 | 47,784 | 47,704 | 46,951 | 34 | - | 1,674 | 4 |
| Consumer real estate | 13,998 | 14,255 | 14,409 | 14,224 | 14,046 | (257) | (2) | (47) | - |
| Credit card and other | 569 | 586 | 594 | 623 | 649 | (17) | (3) | (80) | (12) |
| Total Consumer | 14,567 | 14,841 | 15,004 | 14,847 | 14,694 | (274) | (2) | (127) | (1) |
| Loans and leases, net of unearned income | 63,192 | 63,432 | 62,787 | 62,551 | 61,645 | (240) | - | 1,547 | 3 |
| Loans held-for-sale | 479 | 515 | 454 | 501 | 519 | (36) | (7) | (40) | (8) |
| Investment securities | 9,454 | 9,321 | 9,321 | 9,330 | 9,209 | 134 | 1 | 245 | 3 |
| Trading securities | 1,796 | 1,798 | 1,625 | 1,609 | 1,442 | (2) | - | 354 | 25 |
| Interest-bearing deposits with banks | 1,233 | 1,218 | 1,272 | 1,259 | 1,265 | 14 | 1 | (33) | (3) |
| Federal funds sold and securities purchased under agreements to resell | 756 | 743 | 573 | 636 | 713 | 13 | 2 | 43 | 6 |
| Total interest earning assets | 76,910 | 77,027 | 76,032 | 75,887 | 74,793 | (117) | - | 2,117 | 3 |
| Cash and due from banks | 936 | 900 | 860 | 864 | 886 | 36 | 4 | 51 | 6 |
| Goodwill and other intangible assets, net | 1,611 | 1,619 | 1,628 | 1,638 | 1,648 | (8) | (1) | (36) | (2) |
| Premises and equipment, net | 543 | 548 | 556 | 565 | 570 | (5) | (1) | (27) | (5) |
| Allowance for loan and lease losses | (750) | (774) | (809) | (828) | (827) | 24 | 3 | 77 | 9 |
| Other assets | 3,795 | 3,760 | 3,781 | 3,831 | 3,896 | 34 | 1 | (101) | (3) |
| Total assets | $83,045 | $83,081 | $82,049 | $81,958 | $80,965 | $(36) | - % | $2,081 | 3% |
| Liabilities and shareholders' equity: | | | | | | | | | |
| Deposits: | | | | | | | | | |
| Savings | $26,148 | $26,693 | $26,326 | $25,899 | $26,544 | $(545) | (2)% | $(396) | (1)% |
| Time deposits | 6,755 | 6,205 | 6,871 | 6,630 | 6,329 | 550 | 9 | 426 | 7 |
| Other interest-bearing deposits | 17,679 | 17,573 | 16,866 | 16,362 | 16,096 | 106 | 1 | 1,583 | 10 |
| Total interest-bearing deposits | 50,582 | 50,470 | 50,063 | 48,891 | 48,970 | 112 | - | 1,612 | 3 |
| Trading liabilities | 729 | 722 | 549 | 613 | 692 | 7 | 1 | 36 | 5 |
| Federal funds purchased and securities sold under agreements to repurchase | 2,649 | 2,807 | 2,631 | 2,692 | 2,479 | (158) | (6) | 170 | 7 |
| Short-term borrowings | 894 | 470 | 387 | 1,208 | 681 | 423 | 90 | 212 | 31 |
| Term borrowings | 1,319 | 1,323 | 1,335 | 1,556 | 1,332 | (4) | - | (12) | (1) |
| Total interest-bearing liabilities | 56,173 | 55,792 | 54,965 | 54,960 | 54,154 | 381 | 1 | 2,019 | 4 |
| Noninterest-bearing deposits | 15,628 | 16,072 | 15,862 | 15,851 | 15,535 | (444) | (3) | 93 | 1 |
| Other liabilities | 1,999 | 2,082 | 1,999 | 2,050 | 2,165 | (83) | (4) | (166) | (8) |
| Total liabilities | 73,800 | 73,946 | 72,825 | 72,861 | 71,854 | (146) | - | 1,946 | 3 |
| Shareholders' Equity: | | | | | | | | | |
| Preferred stock | 436 | 349 | 350 | 426 | 426 | 87 | 25 | 10 | 2 |
| Common stock | 300 | 307 | 316 | 318 | 323 | (7) | (2) | (23) | (7) |
| Capital surplus | 3,866 | 4,095 | 4,379 | 4,464 | 4,664 | (229) | (6) | (798) | (17) |
| Retained earnings | 5,129 | 4,910 | 4,798 | 4,562 | 4,468 | 219 | 4 | 661 | 15 |
| Accumulated other comprehensive loss, net | (781) | (821) | (913) | (967) | (1,066) | 40 | 5 | 285 | 27 |
| Combined shareholders' equity | 8,950 | 8,840 | 8,928 | 8,802 | 8,816 | 110 | 1 | 134 | 2 |
| Noncontrolling interest | 295 | 295 | 295 | 295 | 295 | - | - | - | - |
| Total shareholders' equity | 9,245 | 9,135 | 9,224 | 9,097 | 9,111 | 110 | 1 | 134 | 1 |
| Total liabilities and shareholders' equity | $83,045 | $83,081 | $82,049 | $81,958 | $80,965 | $(36) | - % | $2,081 | 3% |
| Memo: | | | | | | | | | |
| Total deposits | $66,210 | $66,542 | $65,924 | $64,742 | $64,504 | $(332) | - % | $1,706 | 3% |
| Loans to mortgage companies | $3,884 | $4,160 | $3,628 | $3,533 | $2,819 | $(275) | (7)% | $1,066 | 38% |
| | | | | | | | | | | 1Q26 Change vs. |
|---|
| 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 4Q25 | 1Q25 |
|---|
| | | | | | | | | | | $/bp | % | $/bp | % |
|---|
| CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCE SHEET: YIELDS AND RATES | | | | | |
| Quarterly, Unaudited | | | | | | | | | | | | | |
| (In millions, except rates) | Income/Expense | Rate | Income/Expense | Rate | Income/Expense | Rate | Income/Expense | Rate | Income/Expense | Rate | Income/Expense | Income/Expense |
| Interest earning assets/Interest income: | | | | | | | | | | | | |
| Loans and leases, net of unearned income: | | | | | | | | | | | | |
| Commercial | $707 | | 5.89% | $743 | | 6.07% | $767 | | 6.37% | $738 | | 6.21% | $715 | | 6.18% | $(36) | (5)% | $(7) | (1)% |
| Consumer | 181 | | 4.99 | 187 | | 5.02 | 191 | | 5.07 | 186 | | 4.99 | 182 | | 4.96 | (6) | (3) | - | - |
| Loans and leases, net of unearned income | 887 | | 5.68 | 930 | | 5.83 | 957 | | 6.06 | 924 | | 5.92 | 897 | | 5.89 | (43) | (5) | (10) | (1) |
| Loans held-for-sale | 7 | | 6.26 | 8 | | 6.45 | 8 | | 6.86 | 8 | | 6.76 | 9 | | 7.09 | (1) | (10) | (2) | (19) |
| Investment securities | 71 | | 3.02 | 71 | | 3.06 | 72 | | 3.09 | 71 | | 3.06 | 69 | | 3.02 | - | - | 2 | 3 |
| Trading securities | 24 | | 5.25 | 25 | | 5.57 | 24 | | 5.81 | 23 | | 5.72 | 20 | | 5.57 | (1) | (6) | 3 | 17 |
| Interest-bearing deposits with banks | 11 | | 3.69 | 12 | | 3.97 | 14 | | 4.41 | 14 | | 4.45 | 14 | | 4.44 | (1) | (8) | (3) | (19) |
| Federal funds sold and securities purchased under agreements | 7 | | 3.55 | 7 | | 3.86 | 6 | | 4.20 | 7 | | 4.24 | 7 | | 4.24 | (1) | (9) | (1) | (11) |
| Interest income | $1,008 | | 5.29% | $1,054 | | 5.44% | $1,081 | | 5.65% | $1,047 | | 5.53% | $1,017 | | 5.50% | $(47) | (4)% | $(10) | (1)% |
| Interest bearing liabilities/Interest expense: | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | | | |
| Savings | $138 | | 2.14% | $169 | | 2.51% | $184 | | 2.78% | $177 | | 2.73% | $175 | | 2.67% | $(30) | (18)% | $(36) | (21)% |
| Time deposits | 56 | | 3.39 | 55 | | 3.49 | 64 | | 3.71 | 64 | | 3.88 | 62 | | 4.00 | 2 | 3 | (6) | (10) |
| Other interest-bearing deposits | 89 | | 2.04 | 98 | | 2.22 | 102 | | 2.41 | 96 | | 2.36 | 92 | | 2.31 | (9) | (9) | (3) | (3) |
| Total interest-bearing deposits | 284 | | 2.28 | 322 | | 2.53 | 351 | | 2.78 | 337 | | 2.76 | 329 | | 2.72 | (38) | (12) | (45) | (14) |
| Trading liabilities | 7 | | 3.81 | 7 | | 3.76 | 5 | | 3.93 | 6 | | 4.07 | 7 | | 4.29 | - | - | - | (6) |
| Federal funds purchased and securities sold under agreements to repurchase | 20 | | 2.98 | 23 | | 3.21 | 23 | | 3.52 | 24 | | 3.61 | 21 | | 3.47 | (3) | (14) | (2) | (8) |
| Short-term borrowings | 8 | | 3.78 | 5 | | 4.08 | 4 | | 4.39 | 13 | | 4.47 | 7 | | 4.40 | 3 | 72 | 1 | 13 |
| Term borrowings | 19 | | 5.65 | 19 | | 5.76 | 19 | | 5.82 | 22 | | 5.60 | 18 | | 5.41 | - | (2) | 1 | 3 |
| Interest expense | 337 | | 2.43 | 375 | | 2.67 | 403 | | 2.91 | 403 | | 2.94 | 383 | | 2.87 | (38) | (10) | (46) | (12) |
| Net interest income - tax equivalent basis | 670 | | 2.86 | 679 | | 2.77 | 678 | | 2.74 | 645 | | 2.59 | 634 | | 2.63 | (9) | (1) | 36 | 6 |
| Fully taxable equivalent adjustment | (3) | | 0.66 | (3) | | 0.74 | (3) | | 0.81 | (4) | | 0.81 | (3) | | 0.79 | - | 10 | - | 12 |
| Net interest income | $667 | | 3.52% | $676 | | 3.51% | $674 | | 3.55% | $641 | | 3.40% | $631 | | 3.42% | $(9) | (1)% | $36 | 6% |
| Memo: | | | | | | | | | | | | | | |
| Total loan yield | | 5.68% | | 5.83% | | 6.06% | | 5.92% | | 5.89% | (15)bp | | (21)bp | |
| Total deposit cost | | 1.74% | | 1.92% | | 2.11% | | 2.09% | | 2.07% | (18)bp | | (33)bp | |
| Total funding cost | | 1.90% | | 2.07% | | 2.26% | | 2.28% | | 2.23% | (17)bp | | (33)bp | |
| Average loans and leases, net of unearned income | $63,192 | | | $63,432 | | | $62,787 | | | $62,551 | | | $61,645 | | | $(240) | - % | $1,547 | 3% |
| Average deposits | | 66,210 | | | 66,542 | | | 65,924 | | | 64,742 | | | 64,504 | | (332) | - % | 1,706 | 3% |
| Average funded liabilities | | 71,801 | | | 71,864 | | | 70,827 | | | 70,811 | | | 69,689 | | $(63) | - % | $2,112 | 3% |
Net interest income and yields are adjusted to a fully taxable equivalent (“FTE”) basis assuming a statutory federal income tax of 21 percent and, where applicable, state income taxes.
Earning assets yields are expressed net of unearned income.
Loan yields include loan fees, cash basis interest income, and loans on nonaccrual status.
| As of | 1Q26 change vs. |
|---|
| CONSOLIDATED NONPERFORMING LOANS AND LEASES ("NPL") |
| Quarterly, Unaudited | | | | | | | | | |
| (In millions, except ratio data) | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 4Q25 | 1Q25 |
| Nonperforming loans and leases | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | $219 | $224 | $211 | $224 | $195 | $(5) | (2)% | $24 | 12% |
| Commercial real estate | 243 | 239 | 254 | 236 | 284 | 4 | 2 | (42) | (15) |
| Consumer real estate | 144 | 140 | 139 | 131 | 129 | 4 | 3 | 15 | 11 |
| Credit card and other | 1 | 1 | 1 | 1 | 1 | - | 13 | - | (14) |
| Total nonperforming loans and leases | $606 | $604 | $605 | $593 | $609 | $2 | - % | $(3) | (1)% |
| Asset Quality Ratio | | | | | | | | | |
| Nonperforming loans and leases to loans and leases | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | 0.60% | 0.62% | 0.61% | 0.65% | 0.58% | | | | |
| Commercial real estate | 1.81 | 1.76 | 1.86 | 1.70 | 2.01 | | | | |
| Consumer real estate | 1.03 | 0.99 | 0.96 | 0.91 | 0.92 | | | | |
| Credit card and other | 0.19 | 0.16 | 0.25 | 0.21 | 0.19 | | | | |
| Total nonperforming loans and leases to loans and leases | 0.94% | 0.94% | 0.96% | 0.94% | 0.98% | | | | |
| As of | 1Q26 change vs. |
|---|
| CONSOLIDATED LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING |
| Quarterly, Unaudited | | | | | | | | | |
| (In millions) | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 4Q25 | 1Q25 |
| Loans and leases 90 days or more past due and accruing | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | $1 | $1 | $1 | $1 | $1 | $(1) | (44)% | | $ - | 43% | |
| Commercial real estate | - | - | - | - | - | - | | NM | - | | NM |
| Consumer real estate | 2 | 6 | 6 | 6 | 7 | (4) | (72) | | (5) | (77) | |
| Credit card and other | 1 | 1 | 2 | 1 | - | - | (30) | | - | | NM |
| Total loans and leases 90 days or more past due and accruing | $3 | $8 | $9 | $8 | $8 | $(5) | (62)% | | $(5) | (60)% | |
| As of | 1Q26 change vs. |
|---|
| CONSOLIDATED NET CHARGE-OFFS (RECOVERIES) |
| Quarterly, Unaudited | | | | | | | | | |
| (In millions, except ratio data) | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 4Q25 | 1Q25 |
| Charge-off, Recoveries and Related Ratios | | | | | | $ | % | $ | % |
| Gross Charge-offs | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | $36 | $39 | $25 | $28 | $34 | $(3) | (8)% | | $3 | 8% | |
| Commercial real estate | 4 | 2 | 3 | 8 | 3 | 2 | | NM | 1 | 36 | |
| Consumer real estate | 1 | 1 | 1 | 2 | - | - | (1) | | 1 | | NM |
| Credit card and other | 4 | 4 | 6 | 6 | 4 | - | (7) | | - | 4 | |
| Total gross charge-offs | $45 | $47 | $36 | $43 | $41 | $(1) | (3)% | | $5 | 11% | |
| Gross Recoveries | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | $(14) | $(13) | $(6) | $(6) | $(6) | $ - | (2)% | | $(8) | | NM |
| Commercial real estate | - | - | - | - | (3) | - | | NM | 3 | 96 | |
| Consumer real estate | (2) | (2) | (1) | (2) | (1) | - | 12 | | (1) | (57) | |
| Credit card and other | (1) | (1) | (1) | (2) | (1) | - | (17) | | - | 19 | |
| Total gross recoveries | $(17) | $(16) | $(9) | $(9) | $(12) | $ - | (2)% | | $(5) | (44)% | |
| Net Charge-offs (Recoveries) | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | $23 | $26 | $19 | $22 | $28 | $(3) | (13)% | | $(5) | (19)% | |
| Commercial real estate | 3 | 2 | 3 | 8 | (1) | 2 | | NM | 4 | | NM |
| Consumer real estate | - | (1) | (1) | - | (1) | - | 34 | | - | 42 | |
| Credit card and other | 3 | 3 | 5 | 4 | 3 | - | (14) | | - | 15 | |
| Total net charge-offs | $29 | $30 | $26 | $34 | $29 | $(2) | (6)% | | $ - | (2)% | |
| Annualized Net Charge-off (Recovery) Rates | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | 0.26% | 0.30% | 0.22% | 0.26% | 0.35% | | | | |
| Commercial real estate | 0.10 | 0.04 | 0.09 | 0.22 | (0.02) | | | | |
| Consumer real estate | (0.01) | (0.02) | (0.02) | - | (0.02) | | | | |
| Credit card and other | 2.10 | 2.31 | 3.54 | 2.64 | 1.60 | | | | |
| Total loans and leases | 0.18% | 0.19% | 0.17% | 0.22% | 0.19% | | | | |
| As of | 1Q26 Change vs. |
|---|
| CONSOLIDATED ALLOWANCE FOR LOAN AND LEASE LOSSES AND RESERVE FOR UNFUNDED COMMITMENTS |
| Quarterly, Unaudited | | | | | | | | | |
| (In millions) | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 4Q25 | 1Q25 |
| Summary of Changes in the Components of the Allowance For Credit Losses | | | | | | $ | % | $ | % |
| Allowance for loan and lease losses - beginning | $738 | $777 | $814 | $822 | $815 | $(38) | (5)% | | $(77) | (9)% | |
| Charge-offs: | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | (36) | (39) | (25) | (28) | (34) | 3 | 8 | | (3) | (8) | |
| Commercial real estate | (4) | (2) | (3) | (8) | (3) | (2) | | NM | (1) | (36) | |
| Consumer real estate | (1) | (1) | (1) | (2) | - | - | 1 | | (1) | | NM |
| Credit card and other | (4) | (4) | (6) | (6) | (4) | - | 7 | | - | (4) | |
| Total charge-offs | (45) | (47) | (36) | (43) | (41) | 1 | 3 | | (5) | (11) | |
| Recoveries: | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | 14 | 13 | 6 | 6 | 6 | - | 2 | | 8 | | NM |
| Commercial real estate | - | - | - | - | 3 | - | | NM | (3) | (96) | |
| Consumer real estate | 2 | 2 | 1 | 2 | 1 | - | (12) | | 1 | 57 | |
| Credit card and other | 1 | 1 | 1 | 2 | 1 | - | 17 | | - | (19) | |
| Total Recoveries | 17 | 16 | 9 | 9 | 12 | - | 2 | | 5 | 44 | |
| Provision for loan and lease losses: | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | 41 | 28 | 5 | 23 | 28 | 13 | 45 | | 12 | 45 | |
| Commercial real estate | (17) | (26) | (5) | (5) | (2) | 9 | 35 | | (15) | | NM |
| Consumer real estate | (6) | (13) | (15) | 4 | 8 | 7 | 52 | | (14) | | NM |
| Credit card and other | 3 | 3 | 4 | 3 | 2 | (1) | (16) | | 1 | 27 | |
| Total provision for loan and lease losses: | 20 | (8) | (11) | 26 | 36 | 28 | | NM | (16) | (44) | |
| Allowance for loan and lease losses - ending | $730 | $738 | $777 | $814 | $822 | $(9) | (1)% | | $(93) | (11)% | |
| Reserve for unfunded commitments - beginning | $101 | $93 | $87 | $83 | $79 | $8 | 9% | | $22 | 28% | |
| Provision for unfunded commitments | (5) | 8 | 6 | 4 | 4 | (13) | | NM | (9) | | NM |
| Reserve for unfunded commitments - ending | $96 | $101 | $93 | $87 | $83 | $(5) | (5)% | | $13 | 16% | |
| Total allowance for credit losses- ending | $826 | $839 | $870 | $901 | $905 | $(13) | (2)% | | $(79) | (9)% | |
| As of |
|---|
| 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 |
|---|
| CONSOLIDATED ASSET QUALITY RATIOS - ALLOWANCE FOR LOAN AND LEASE LOSSES | | | | | |
| Quarterly, Unaudited | | | | | |
| Allowance for loan and lease losses to loans and leases | | | | | |
| Commercial, financial, and industrial (C&I) | 0.97% | 0.93% | 0.97% | 1.01% | 1.04% |
| Commercial real estate | 1.16% | 1.30% | 1.49% | 1.53% | 1.59% |
| Consumer real estate | 1.44% | 1.46% | 1.52% | 1.63% | 1.63% |
| Credit card and other | 3.49% | 3.40% | 3.42% | 3.50% | 3.41% |
| Total allowance for loan and lease losses to loans and leases | 1.13% | 1.15% | 1.23% | 1.29% | 1.32% |
| Allowance for loan and lease losses to nonperforming loans and leases | | | | | |
| Commercial, financial, and industrial (C&I) | 162% | 150% | 158% | 155% | 178% |
| Commercial real estate | 64% | 74% | 80% | 90% | 79% |
| Consumer real estate | 140% | 147% | 158% | 179% | 178% |
| Credit card and other | 1,842% | 2,096% | 1,380% | 1,684% | 1,752% |
| Total allowance for loan and lease losses to nonperforming loans and leases | 120% | 122% | 128% | 137% | 135% |
| Allowance for credit losses ratios | | | | | |
| Total allowance for credit losses to loans and leases | 1.28% | 1.31% | 1.38% | 1.42% | 1.45% |
| Total allowance for credit losses to nonperforming loans and leases | 136% | 139% | 144% | 152% | 148% |
COMMERCIAL, CONSUMER, AND WEALTH
| | | | | | 1Q26 Change vs. |
|---|
| 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 4Q25 | 1Q25 |
|---|
| | | | | | $/bp | % | $/bp | % |
|---|
| Income Statement (millions) | | | | | | | | | |
| Net interest income | $649 | $662 | $671 | $643 | $633 | $(13) | (2)% | | $17 | 3% | |
| Noninterest income | 119 | 124 | 117 | 113 | 110 | (6) | (5) | | 9 | 8 | |
| Total revenue | 768 | 786 | 787 | 757 | 743 | (18) | (2) | | 25 | 3 | |
| Noninterest expense | 368 | 380 | 366 | 355 | 344 | (12) | (3) | | 23 | 7 | |
| Pre-provision net revenue | 400 | 407 | 421 | 402 | 398 | (6) | (1) | | 2 | 1 | |
| Provision for credit losses | 8 | (2) | 2 | 13 | 38 | 10 | | NM | (30) | | (79) |
| Income before income tax expense | 393 | 409 | 420 | 389 | 360 | (16) | (4) | | 32 | 9 | |
| Income tax expense | 94 | 98 | 100 | 92 | 86 | (4) | (4) | | 8 | 10 | |
| Net income | $299 | $311 | $319 | $296 | $275 | $(12) | (4)% | | $24 | 9% | |
| Average Balances (billions) | | | | | | | | | |
| Total loans and leases | $56.5 | $56.5 | $56.4 | $56.3 | $56.2 | $ - | - % | | $0.3 | 1% | |
| Interest-earning assets | 56.5 | 56.5 | 56.4 | 56.3 | 56.2 | - | - | | 0.3 | 1 | |
| Total assets | 59.0 | 59.0 | 58.8 | 58.7 | 58.7 | - | - | | 0.3 | - | |
| Total deposits | 58.7 | 59.4 | 59.1 | 58.9 | 59.1 | (0.7) | (1) | | (0.4) | (1) | |
| Key Metrics | | | | | | | | | |
| Net interest margin | 4.68% | 4.67% | 4.74% | 4.60% | 4.58% | 1bp | | 10bp | |
| Efficiency ratio | 47.85% | 48.31% | 46.50% | 46.91% | 46.36% | (46)bp | | 149bp | |
| Loans-to-deposits ratio (period-end balances) | 95.94% | 94.83% | 94.56% | 95.33% | 94.28% | 111bp | | 166bp | |
| Loans-to-deposits ratio (average balances) | 96.19% | 95.09% | 95.30% | 95.59% | 94.99% | 110bp | | 120bp | |
| Return on average assets (annualized) | 2.05% | 2.09% | 2.15% | 2.02% | 1.90% | (4)bp | | 15bp | |
| Return on allocated equity | 20.57% | 20.34% | 20.37% | 18.80% | 17.54% | 23bp | | 303bp | |
| Financial center locations | 410 | 412 | 413 | 414 | 414 | (2) | | (4) | |
Certain previously reported amounts have been reclassified to agree with current presentation.
Commercial, Consumer, and Wealth segment: Offers financial products and services, including traditional lending and deposit taking, to commercial and consumer clients primarily in the southern U.S. and other selected markets. Commercial, Consumer & Wealth also consists of lines of business that deliver product offerings and services with niche industry knowledge including asset-based lending, commercial real estate, equipment finance/leasing, energy, international banking, healthcare, and transportation and logistics. Additionally, Commercial, Consumer & Wealth provides investment, wealth management, financial planning, trust and asset management services for consumer clients as well as delivering treasury management solutions, loan syndications, and corporate banking services.
WHOLESALE
| | | | | | 1Q26 Change vs. |
|---|
| 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 4Q25 | 1Q25 |
|---|
| | | | | | $/bp | % | $/bp | % |
|---|
| Income Statement (millions) | | | | | | | | | |
| Net interest income | $62 | $66 | $60 | $57 | $50 | $(3) | (5)% | | $12 | 25% | |
| Noninterest income | 64 | 69 | 74 | 53 | 59 | (5) | (7) | | 5 | 8 | |
| Total revenue | 126 | 135 | 134 | 111 | 109 | (9) | (6) | | 17 | 16 | |
| Noninterest expense | 83 | 85 | 83 | 75 | 75 | (1) | (1) | | 8 | 11 | |
| Pre-provision net revenue | 43 | 50 | 52 | 36 | 34 | (7) | (15) | | 9 | 27 | |
| Provision for credit losses | 9 | 3 | (1) | 6 | 3 | 6 | | NM | 6 | | NM |
| Income before income tax expense | 34 | 47 | 52 | 30 | 31 | (13) | (28) | | 3 | 10 | |
| Income tax expense | 8 | 11 | 13 | 7 | 7 | (3) | (28) | | 1 | 10 | |
| Net income | $26 | $36 | $40 | $23 | $23 | $(10) | (28)% | | $2 | 10% | |
| Average Balances (billions) | | | | | | | | | |
| Total loans and leases | $6.3 | $6.5 | $6.0 | $5.8 | $5.0 | $(0.2) | (2)% | | $1.3 | 26% | |
| Interest-earning assets | 9.4 | 9.6 | 8.7 | 8.6 | 7.8 | (0.2) | (2) | | 1.6 | 21 | |
| Total assets | 10.1 | 10.3 | 9.4 | 9.3 | 8.5 | (0.2) | (2) | | 1.6 | 18 | |
| Total deposits | 2.3 | 2.3 | 2.2 | 2.1 | 2.0 | - | - | | 0.3 | 13 | |
| Key Metrics | | | | | | | | | |
| Fixed income product average daily revenue (thousands) | $742 | $765 | $771 | $550 | $586 | $(23) | (3)% | | $157 | 27% | |
| Net interest margin | 2.68% | 2.72% | 2.77% | 2.67% | 2.59% | (4)bp | | 9bp | |
| Efficiency ratio | 66.03% | 62.77% | 61.54% | 67.76% | 69.01% | 326bp | | (298)bp | |
| Loans-to-deposits ratio (period-end balances) | 354% | 343% | 319% | 312% | 288% | 1,047bp | | 6,594bp | |
| Loans-to-deposits ratio (average balances) | 280% | 288% | 276% | 282% | 252% | (758)bp | | 2,815bp | |
| Return on average assets (annualized) | 1.03% | 1.38% | 1.68% | 0.98% | 1.11% | (35)bp | | (8)bp | |
| Return on allocated equity | 17.54% | 24.11% | 26.29% | 15.39% | 16.00% | (658)bp | | 153bp | |
Certain previously reported amounts have been reclassified to agree with current presentation.
Wholesale segment: Consists of lines of business that deliver product offerings and services with differentiated industry knowledge. Wholesale’s lines of business include mortgage warehouse lending, franchise finance, correspondent banking, and mortgage. Additionally, Wholesale has a line of business focused on fixed income securities sales, trading, underwriting, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory services, and derivative sales.
CORPORATE
| 1Q26 Change vs. |
|---|
| 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 4Q25 | 1Q25 |
|---|
| Income Statement (millions) | | | | | | | | | |
| Net interest income/(expense) | $(44) | $(51) | $(56) | $(60) | $(51) | $7 | 14% | $7 | 14% |
| Noninterest income | 12 | 18 | 25 | 22 | 12 | (7) | (36) | - | (1) |
| Total revenues | (32) | (33) | (32) | (38) | (40) | 1 | 2 | 7 | 18 |
| Noninterest expense | 54 | 80 | 102 | 61 | 68 | (26) | (33) | (14) | (21) |
| Pre-provision net revenue | (86) | (113) | (134) | (99) | (108) | 27 | 24 | 21 | 20 |
| Provision for credit losses | (2) | (1) | (6) | 11 | (1) | (1) | (81) | (1) | (78) |
| Income before income tax expense | (84) | (112) | (128) | (110) | (106) | 28 | 25 | 22 | 21 |
| Income tax expense (benefit) | (26) | (31) | (35) | (35) | (31) | 5 | 16 | 4 | 15 |
| Net income/(loss) | $(58) | $(81) | $(93) | $(75) | $(76) | $23 | 28% | $18 | 23% |
| Average Balance Sheet (billions) | | | | | | | | | |
| Interest bearing assets | $11.1 | $11.0 | $11.0 | $11.0 | $10.8 | $0.1 | 1% | $0.2 | 2% |
| Total assets | 14.0 | 13.8 | 13.9 | 13.9 | 13.8 | 0.2 | 1 | 0.2 | 2 |
Certain previously reported amounts have been reclassified to agree with current presentation.
Corporate segment: Consists primarily of corporate support functions including risk management, audit, accounting, finance, executive office, and corporate communications. Shared support services such as human resources, marketing, properties, technology, credit risk and bank operations are allocated to the activities of Commercial, Consumer & Wealth, Wholesale and Corporate. Additionally, the Corporate segment includes centralized management of capital and funding to support the business activities of the company including management of balance sheet funding, liquidity, and capital management and allocation. The Corporate segment also includes the revenue and expense associated with run-off businesses such as pre-2009 mortgage banking elements, run-off consumer and trust preferred loan portfolios, and other exited businesses.
FOOTNOTES
Taxable equivalent interest income and interest expense are non-GAAP measures and are reconciled to net interest income (GAAP) in the table.
Occupancy and Equipment expense includes Computer Software Expense.
Pre-provision net revenue is a non-GAAP measure and is reconciled to income before income taxes (GAAP) in the table.
Represents a non-GAAP measure and is reconciled to the nearest GAAP measure in the non-GAAP to GAAP reconciliations beginning on page 20.
Credit card and other includes $157 million of commercial credit card balances at March 31, 2026.
Net interest margin is computed using total NII adjusted for FTE assuming a statutory federal income tax rate of 21 percent and, where applicable, state taxes.
Segment equity is allocated based on an internal allocation methodology.
Share count for all periods shown was impacted by share repurchases.
Balance fluctuates based on market conditions. 1Q26 decrease driven by equity market valuations.
Preferred Stock balance impacted by the issuance of Series H Preferred Stock in 1Q26.
| CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION | | | | | |
| Quarterly, Unaudited | | | | | |
| ($ in millions, except per share data) | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 |
| Tangible Common Equity (Non-GAAP) | | | | | |
| (A) Total equity (GAAP) | $9,465 | $9,142 | $9,244 | $9,257 | $9,044 |
| Less: Noncontrolling interest (a) | 295 | 295 | 295 | 295 | 295 |
| Less: Preferred stock (a) | 741 | 349 | 349 | 426 | 426 |
| (B) Total common equity | $8,429 | $8,498 | $8,600 | $8,536 | $8,322 |
| Less: Intangible assets (GAAP) (b) | 1,607 | 1,615 | 1,624 | 1,633 | 1,643 |
| (C) Tangible common equity (Non-GAAP) | $6,822 | $6,882 | $6,976 | $6,903 | $6,680 |
| Tangible Assets (Non-GAAP) | | | | | |
| (D) Total assets (GAAP) | $84,132 | $83,876 | $83,192 | $82,084 | $81,491 |
| Less: Intangible assets (GAAP) (b) | 1,607 | 1,615 | 1,624 | 1,633 | 1,643 |
| (E) Tangible assets (Non-GAAP) | $82,525 | $82,261 | $81,568 | $80,451 | $79,849 |
| Period-end Shares Outstanding | | | | | |
| (F) Period-end shares outstanding | 476 | 485 | 500 | 509 | 507 |
| Ratios | | | | | |
| (A)/(D) Total equity to total assets (GAAP) | 11.25% | 10.90% | 11.11% | 11.28% | 11.10% |
| (C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP) | 8.27% | 8.37% | 8.55% | 8.58% | 8.37% |
| (B)/(F) Book value per common share (GAAP) | $17.72 | $17.53 | $17.19 | $16.78 | $16.40 |
| (C)/(F) Tangible book value per common share (Non-GAAP) | $14.34 | $14.20 | $13.94 | $13.57 | $13.17 |
(a) Included in Total equity on the Consolidated Balance Sheet.
(b) Includes goodwill and other intangible assets, net of amortization.
| CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION | | | | | | |
| Quarterly, Unaudited | | | | | | |
| ($ in millions, except per share data) | | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 |
| Adjusted Diluted EPS | | | | | | |
| Net income available to common shareholders ("NIAC") (GAAP) | a | $257 | $257 | $254 | $233 | $213 |
| Plus Total notable items (after-tax) (Non-GAAP) (a) | | $ - | $2 | $9 | $(3) | $4 |
| Adjusted net income available to common shareholders (Non-GAAP) | b | $257 | $259 | $263 | $229 | $217 |
| Diluted Shares (GAAP) | c | 487 | 496 | 510 | 514 | 523 |
| Diluted EPS (GAAP) | a/c | $0.53 | $0.52 | $0.50 | $0.45 | $0.41 |
| Adjusted diluted EPS (Non-GAAP) | b/c | $0.53 | $0.52 | $0.51 | $0.45 | $0.42 |
| Adjusted Net Income ("NI") and Adjusted Return on Assets ("ROA") | | | | | | |
| Net Income ("NI") (GAAP) | | $266 | $266 | $266 | $244 | $222 |
| Plus Relevant notable items (after-tax) (Non-GAAP) (a) | | $ - | $2 | $6 | $(3) | $4 |
| Adjusted NI (Non-GAAP) | | $266 | $268 | $272 | $241 | $227 |
| NI (annualized) (GAAP) | d | $1,079 | $1,054 | $1,055 | $980 | $901 |
| Adjusted NI (annualized) (Non-GAAP) | e | $1,079 | $1,064 | $1,079 | $967 | $919 |
| Average assets (GAAP) | f | $83,045 | $83,081 | $82,049 | $81,958 | $80,965 |
| ROA (GAAP) | d/f | 1.30% | 1.27% | 1.29% | 1.20% | 1.11% |
| Adjusted ROA (Non-GAAP) | e/f | 1.30% | 1.28% | 1.32% | 1.18% | 1.14% |
| Return on Average Common Equity ("ROCE")/ Return on Average Tangible Common Equity ("ROTCE")/ Adjusted ROTCE |
| Net income available to common shareholders ("NIAC") (annualized) (GAAP) | g | $1,044 | $1,018 | $1,007 | $933 | $864 |
| Adjusted Net income available to common shareholders (annualized) (Non-GAAP) | h | $1,044 | $1,028 | $1,042 | $919 | $882 |
| Average Common Equity (GAAP) | i | $8,514 | $8,491 | $8,579 | $8,376 | $8,389 |
| Intangible Assets (GAAP) (b) | | 1,611 | 1,619 | 1,628 | 1,638 | 1,648 |
| Average Tangible Common Equity (Non-GAAP) | j | $6,903 | $6,872 | $6,950 | $6,738 | $6,742 |
| ROCE (GAAP) | g/i | 12.26% | 11.99% | 11.74% | 11.14% | 10.30% |
| ROTCE (Non-GAAP) | g/j | 15.12% | 14.82% | 14.49% | 13.85% | 12.81% |
| Adjusted ROTCE (Non-GAAP) | h/j | 15.12% | 14.96% | 15.00% | 13.65% | 13.08% |
(a) Adjusted for those notable items relevant to the amount being adjusted, as detailed on page 8.
(b) Includes goodwill and other intangible assets, net of amortization.
| CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION | | | | | | |
| Quarterly, Unaudited | | | | | | |
| (In millions) | | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 |
| Adjusted Noninterest Income as a % of Total Revenue | | | | | | |
| Noninterest income (GAAP) | k | $195 | $212 | $215 | $189 | $181 |
| Plus notable items (pretax) (GAAP) (a) | | - | - | - | - | - |
| Adjusted noninterest income (Non-GAAP) | l | $195 | $212 | $215 | $189 | $181 |
| Revenue (GAAP) | m | $862 | $888 | $889 | $830 | $812 |
| Taxable-equivalent adjustment | | 3 | 3 | 3 | 4 | 3 |
| Revenue- Taxable-equivalent (Non-GAAP) | | 865 | 892 | 893 | 833 | 816 |
| Plus notable items (pretax) (GAAP) (a) | | - | - | - | - | - |
| Adjusted revenue (Non-GAAP) | n | $865 | $892 | $893 | $833 | $816 |
| Securities gains/(losses) (GAAP) | o | $(1) | $ - | $ - | $ - | $ - |
| Noninterest income as a % of total revenue (GAAP) | (k-o)/(m-o) | 22.63% | 23.89% | 24.16% | 22.73% | 22.29% |
| Adjusted noninterest income as a % of total revenue (Non-GAAP) | (l-o)/(n-o) | 22.55% | 23.80% | 24.07% | 22.63% | 22.20% |
| Adjusted Efficiency Ratio | | | | | | |
| Noninterest expense (GAAP) | p | $505 | $545 | $551 | $491 | $488 |
| Plus notable items (pretax) (GAAP) (a) | | - | (3) | (8) | 4 | (6) |
| Adjusted noninterest expense (Non-GAAP) | q | $505 | $541 | $542 | $495 | $482 |
| Revenue (GAAP) | r | $862 | $888 | $889 | $830 | $812 |
| Taxable-equivalent adjustment | | 3 | 3 | 3 | 4 | 3 |
| Revenue- Taxable-equivalent (Non-GAAP) | | 865 | 892 | 893 | 833 | 816 |
| Plus notable items (pretax) (GAAP) (a) | | - | - | - | - | - |
| Adjusted revenue (Non-GAAP) | s | $865 | $892 | $893 | $833 | $816 |
| Securities gains/(losses) (GAAP) | t | $(1) | $ - | $ - | $ - | $ - |
| Efficiency ratio (GAAP) | p/ (r-t) | 58.54% | 61.33% | 61.92% | 59.20% | 60.06% |
| Adjusted efficiency ratio (Non-GAAP) | q/ (s-t) | 58.34% | 60.73% | 60.76% | 59.47% | 59.09% |
(a) Adjusted for those notable items relevant to the amount being adjusted, as detailed on page 8.
CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
($ in millions)
| Period-end | Average |
|---|
| 1Q26 | 4Q25 | 1Q26 vs. 4Q25 | 1Q26 | 4Q25 | 1Q26 vs. 4Q25 |
|---|
| Loans excluding LMC | | | | | | | | |
| Total Loans (GAAP) | $64,377 | $64,156 | $221 | - % | $63,192 | $63,432 | | $(240) | - % |
| LMC (GAAP) | 4,641 | 4,703 | (62) | (1)% | 3,884 | 4,160 | | (275) | (7)% |
| Total Loans excl. LMC (Non-GAAP) | 59,736 | 59,453 | 283 | - % | 59,308 | 59,273 | | 35 | - % |
| Total Consumer (GAAP) | 14,490 | 14,688 | (198) | (1)% | 14,567 | | 14,841 | (274) | (2)% |
| Total Commercial excl. LMC (Non-GAAP) | 45,246 | 44,765 | 481 | 1% | 44,741 | 44,432 | | 309 | 1% |
| Total CRE (GAAP) | 13,420 | 13,563 | (143) | (1)% | 13,417 | 13,587 | | (170) | (1)% |
| Total C&I excl. LMC (Non-GAAP) | $31,826 | $31,202 | $624 | 2% | $31,324 | $30,845 | | 479 | 2% |
| | 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 |
|---|
| Allowance for credit losses to loans and leases and Allowance for credit losses to nonperforming loans and leases | | | | | | |
| Allowance for loan and lease losses (GAAP) | A | $730 | $738 | $777 | $814 | $822 |
| Reserve for unfunded commitments (GAAP) | | 96 | 101 | 93 | 87 | 83 |
| Allowance for credit losses (Non-GAAP) | B | $826 | $839 | $870 | $901 | $905 |
| Loans and leases (GAAP) | C | $64,377 | $64,156 | $63,058 | $63,260 | $62,215 |
| Nonaccrual loans and leases (GAAP) | D | $606 | $604 | $605 | $593 | $609 |
| Allowance for loans and lease losses to loans and leases (GAAP) | A/C | 1.13% | 1.15% | 1.23% | 1.29% | 1.32% |
| Allowance for credit losses to loans and leases (Non-GAAP) | B/C | 1.28% | 1.31% | 1.38% | 1.42% | 1.45% |
| Allowance for loans and lease losses to nonperforming loans and leases (GAAP) | A/D | 120% | 122% | 128% | 137% | 135% |
| Allowance for credit losses to nonperforming loans and leases (Non-GAAP) | B/D | 136% | 139% | 144% | 152% | 148% |
| 1Q26 | 4Q25 | 3Q25 | 2Q25 | 1Q25 |
|---|
| CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION | | |
| Quarterly, Unaudited | | |
| ($ in millions) | | |
| Adjusted Pre-provision Net Revenue (PPNR) | | | | | |
| Pre-tax income (GAAP) | $342 | $343 | $344 | $309 | $285 |
| Plus notable items (pretax) (GAAP) (a) | - | 3 | 8 | (4) | 6 |
| Adjusted Pre-tax income (non-GAAP) | $342 | $347 | $352 | $304 | $290 |
| Plus provision for credit losses expense (GAAP) | 15 | - | (5) | 30 | 40 |
| Adjusted Pre-provision net revenue (PPNR) (non-GAAP) | $357 | $347 | $347 | $334 | $330 |
| Taxable-equivalent adjustment | 3 | 3 | 3 | 4 | 3 |
| Adjusted Pre-provision net revenue-Taxable-equivalent (Non-GAAP) | $360 | $350 | $351 | $338 | $334 |
(a) Adjusted for those notable items relevant to the amount being adjusted, as detailed on page 8.
GLOSSARY OF TERMS
Common Equity Tier 1 Ratio: Ratio consisting of common equity adjusted for certain unrealized gains/(losses) on available-for-sale securities, less disallowed portions of goodwill, other intangibles, and deferred tax assets as well as certain other regulatory deductions divided by risk-weighted assets.
Fully Taxable Equivalent (“FTE”): Reflects the amount of tax-exempt income adjusted to a level that would yield the same after-tax income had that income been subject to taxation.
Tier 1 Capital Ratio: Ratio consisting of shareholders’ equity adjusted for certain unrealized gains/(losses) on available-for-sale securities, plus qualifying portions of noncontrolling interests, less disallowed portions of goodwill, other intangible assets, and deferred tax assets as well as certain other regulatory deductions divided by risk-weighted assets.
Key Ratios
Return on Average Assets: Ratio is annualized net income to average total assets.
Return on Average Common Equity: Ratio is annualized net income available to common shareholders to average common equity.
Return on Average Tangible Common Equity: Ratio is annualized net income available to common shareholders to average tangible common equity.
Noninterest Income as a Percentage of Total Revenue: Ratio is noninterest income excluding securities gains/(losses) to total revenue - taxable equivalent excluding securities gains/(losses).
Efficiency Ratio: Ratio is noninterest expense to total revenue - taxable equivalent excluding securities gains/(losses).
Leverage Ratio: Ratio is tier 1 capital to average assets for leverage.
Asset Quality - Consolidated Key Ratios
Nonperforming loans and leases ("NPL") %: Ratio is nonaccruing loans and leases in the loan portfolio to total period-end loans and leases.
Net charge-offs %: Ratio is annualized net charge-offs to total average loans and leases.
Allowance / loans and leases: Ratio is allowance for loan and lease losses to total period-end loans and leases.
Allowance / Nonperforming loans and leases: Ratio is allowance for loan and lease losses to nonperforming loans and leases in the loan portfolio.
Operating Segments
Commercial, Consumer, and Wealth segment: Offers financial products and services, including traditional lending and deposit taking, to commercial and consumer clients primarily in the southern U.S. and other selected markets. Commercial, Consumer & Wealth also consists of lines of business that deliver product offerings and services with niche industry knowledge including asset-based lending, commercial real estate, equipment finance/leasing, energy, international banking, healthcare, and transportation and logistics. Additionally, Commercial, Consumer & Wealth provides investment, wealth management, financial planning, trust and asset management services for consumer clients as well as delivering treasury management solutions, loan syndications, and corporate banking services.
Wholesale segment: Consists of lines of business that deliver product offerings and services with differentiated industry knowledge. Wholesale’s lines of business include mortgage warehouse lending, franchise finance, correspondent banking, and mortgage. Additionally, Wholesale has a line of business focused on fixed income securities sales, trading, underwriting, and strategies for institutional clients in the U.S. and abroad, as well as loan sales, portfolio advisory services, and derivative sales.
Corporate segment: Consists primarily of corporate support functions including risk management, audit, accounting, finance, executive office, and corporate communications. Shared support services such as human resources, marketing, properties, technology, credit risk and bank operations are allocated to the activities of Commercial, Consumer & Wealth, Wholesale and Corporate. Additionally, the Corporate segment includes centralized management of capital and funding to support the business activities of the company including management of balance sheet funding, liquidity, and capital management and allocation. The Corporate segment also includes the revenue and expense associated with run-off businesses such as pre-2009 mortgage banking elements, run-off consumer and trust preferred loan portfolios, and other exited businesses.