Open the filing on EDGARFirst Horizon Corporation Reports Third Quarter 2026 Results and Announces Strategic Balance Sheet Changes to Support Earnings and Growth
MEMPHIS, TN (October 15, 2026) - First Horizon Corporation (NYSE: FHN or “First Horizon”) today reported financial results for the third quarter of a net loss available to common shareholders of $(94) million or loss per share of $(0.20). These results reflect the impact of strategic actions to further align the balance sheet with the Company's growth priorities. During the quarter, the Company began evaluating the possibility of selling ~$4.5 billion of select lower yielding consumer mortgages and, in early October, entered into an agreement to sell these mortgages. This transaction will be accretive to earnings on a go forward basis and will provide balance sheet flexibility to support future loan growth. The transaction is expected to settle early in the fourth quarter.
Excluding notable items, adjusted earnings per share for third quarter 2026 was $0.53, down $0.01 from second quarter 2026 and up $0.02 from third quarter 2025. Reported results include the impacts of notable items totaling $0.73 per share, or $347 million after tax, primarily related to the reclassification of targeted mortgage loans to held for sale in relation to the pending mortgage portfolio sale.
CEO Commentary
“This quarter’s results are a testament to our disciplined approach and clear strategic priorities,” said Bryan Jordan, Chairman, President and CEO of First Horizon Corporation. “Average client deposit balances increased $1.3 billion in the quarter, and we continue to focus on growing and maintaining full client relationships and deploying capital where it best serves long-term value creation. Looking ahead, we remain committed to executing our strategy and delivering sustainable growth and value for our clients, associates, and shareholders.”
Key Financial Results
| 3Q26 | 3Q25 |
|---|
| ($ in millions, except per share) | Reported | Notable Items | Adjusted * | Reported |
| Total revenue - FTE | $410 | $473 | | $883 | $893 |
| Noninterest expense | 529 | (8) | | 521 | 551 |
| Pre-provision net revenue (PPNR) | (122) | | 481 | 359 | 339 |
| Provision (benefit) for credit losses | (25) | 45 | | 20 | (5) |
| Income/(loss) before income taxes | (97) | | 436 | 339 | 344 |
| Income tax expense (benefit) | (18) | | 89 | 71 | 78 |
| Net income/(loss) | (79) | | 347 | 268 | 266 |
| Net income/(loss) available to common shareholders | (94) | | 347 | 253 | 254 |
| Diluted EPS | $(0.20) | $0.73 | | $0.53 | $0.50 |
| Return on average assets | (0.37)% | | 1.25% | 1.29% |
| Return on average common equity (“ROCE") | (4.3) | | 11.7 | 11.7 |
| Return on average tangible common equity (“ROTCE”) | (5.3) | | 14.4 | 14.5 |
| Efficiency Ratio | 129.6% | | 58.9% | 61.9% |
* "Adjusted" results, along with return on tangible common equity, tangible book value per share, PPNR, ACL to loans ratio 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 3 for information on our use of non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 19. See footnote disclosures on page 18.
Safety & Soundness
Capital
CET1 ratio was 10.3%, a decrease from second quarter 2026. The decline in capital was driven by notable items and primarily reflects the impacts of the reclassification of certain mortgage loans to held for sale.
Asset Quality
Provision benefit was $25 million, versus expense of $15 million in second quarter 2026. Excluding the impact of the pending mortgage portfolio transaction, provision for credit losses expense was $20 million, up from $15 million in the prior quarter. Net charge-offs were $36 million or 22 basis points, up from $33 million or 20 basis points in the prior quarter. Nonperforming loans of $482 million decreased $49 million. The ALLL to loans ratio decreased 1 basis point to 1.08%, and the ACL to loans ratio increased 1 basis point to 1.25% due to reclassification of certain mortgage loans associated with the pending portfolio sale.
Profitability
Net Interest Income & NIM
Net interest income (FTE) increased $7 million to $686 million and net interest margin of 3.48% decreased 1 basis point. NII increased primarily due to higher average loan yield of 5.73%, which increased 6 basis points in the quarter. The NIM decrease was driven by higher interest bearing deposit costs of 2.45%, a 12 basis points increase, associated with higher average brokered deposits and higher customer deposit costs.
Fees & Expenses
Noninterest income decreased $487 million to a loss of $276 million primarily due to the recognition of a loss associated with the reclassification of select mortgage loans to held for sale. Adjusted noninterest income of $197 million decreased $14 million, driven by decreased deferred compensation, partially offset by increases in fixed income, service charges and fees, brokerage, trust, and insurance, and card and digital banking fees.
Noninterest expense of $529 million decreased $2 million, driven by decreased deferred compensation expenses, partially offset by increases in occupancy and equipment, and other noninterest expense related to new account promotions.
Growth
Loans & Leases
Average loan and lease balances of $64.5 billion decreased $206 million from the prior quarter, while period-end balances were $59.8 billion, down $5.5 billion from second quarter 2026. Loans to mortgage companies (LMC) decreased by $891 million at period-end, and consumer real estate decreased by $4.6 billion driven by the reclassification of certain mortgage loans to held for sale related to the pending mortgage portfolio sale.
Deposits
Average deposits of $68.6 billion increased $1.8 billion from second quarter 2026. Period-end deposits of $67.7 billion decreased $372 million driven primarily by a decrease in brokered CDs. Average client deposit balances increased $1.3 billion in the quarter and average brokered deposit balances were up $500 million.
* "Adjusted" results, along with return on tangible common equity, tangible book value per share, PPNR, ACL to loans ratio 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 3 for information on our use of non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 19. See footnote disclosures on page 18.
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, or 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 19.
Conference Call Information
Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on October 15, 2026, by dialing 1-833-461-5787 (if calling from the U.S.) and entering access code 391 852 446. 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 webcast will be available on our website on October 15 and will be archived on the site for one year.
First Horizon Corporation (NYSE: FHN), with $84.3 billion in assets as of September 30, 2026, is a leading regional financial services company, dedicated to helping our clients, communities and associates unlock their full potential with capital and counsel. Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates in 12 states concentrated in the southern U.S. The Company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services. First Horizon has been recognized as one of the nation's best employers by Fortune and Forbes magazines and a Top 10 Most Reputable U.S. Bank. More information is available at www.FirstHorizon.com.
Contact: Investor Relations - Tyler Craft - Tyler.Craft@firsthorizon.com
Media Relations - Beth Ardoin - Beth.Ardoin@firsthorizon.com
| | | | | | 3Q26 Change vs. |
|---|
| CONSOLIDATED INCOME STATEMENT | | | | | | | | | |
| Quarterly, Unaudited | | | | | | | | | |
| ($ in millions, except per share data) | 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q26 | 3Q25 |
| Interest income - taxable equivalent | $1,057 | $1,033 | $1,008 | $1,054 | $1,081 | $24 | 2% | | $(24) | (2)% | |
| Interest expense - taxable equivalent | 371 | 354 | 337 | 375 | 403 | 17 | 5 | | (33) | (8) | |
| Net interest income - taxable equivalent | 686 | 679 | 670 | 679 | 678 | 7 | 1 | | 8 | 1 | |
| Less: Taxable - equivalent adjustment | 3 | 3 | 3 | 3 | 3 | - | 2 | | - | (9) | |
| Net interest income | 683 | 676 | 667 | 676 | 674 | 7 | 1 | | 9 | 1 | |
| Noninterest income: | | | | | | | | | |
| Fixed income | 49 | 46 | 53 | 57 | 57 | 3 | 7 | | (8) | (15) | |
| Mortgage banking | 8 | 9 | 9 | 10 | 15 | (1) | (15) | | (7) | (48) | |
| Brokerage, trust, and insurance | 46 | 45 | 43 | 41 | 39 | 1 | 1 | | 7 | 17 | |
| Service charges and fees | 60 | 59 | 58 | 64 | 57 | 1 | 2 | | 2 | 4 | |
| Card and digital banking fees | 19 | 18 | 18 | 18 | 19 | 1 | 4 | | - | 1 | |
| Deferred compensation income | (2) | 15 | (3) | 3 | 8 | (17) | (111) | | (10) | (120) | |
| Loss on pending sale of mortgage loans | (473) | - | - | - | - | (473) | | NM | (473) | | NM |
| Securities gains/(losses) | (1) | - | (1) | - | - | (1) | | NM | (1) | | NM |
| Other noninterest income | 18 | 18 | 16 | 18 | 19 | - | (2) | | (1) | (3) | |
| Total noninterest income | (276) | 211 | 195 | 212 | 215 | (487) | | NM | (491) | | NM |
| Total revenue | 407 | 887 | 862 | 888 | 889 | (480) | (54) | | (482) | (54) | |
| Noninterest expense: | | | | | | | | | |
| Personnel expense: | | | | | | | | | |
| Salaries and benefits | 216 | 215 | 211 | 213 | 209 | 1 | - | | 7 | 4 | |
| Incentives and commissions | 79 | 76 | 79 | 87 | 79 | 3 | 4 | | - | - | |
| Deferred compensation expense | - | 13 | (2) | 3 | 8 | (13) | (100) | | (8) | (100) | |
| Total personnel expense | 295 | 304 | 289 | 303 | 296 | (9) | (3) | | (1) | - | |
| Occupancy and equipment | 89 | 86 | 84 | 83 | 80 | 3 | 3 | | 9 | 11 | |
| Outside services | 78 | 79 | 69 | 95 | 79 | (2) | (2) | | (1) | (2) | |
| Amortization of intangible assets | 8 | 8 | 8 | 9 | 9 | - | - | | (1) | (9) | |
| Other noninterest expense | 59 | 53 | 55 | 55 | 87 | 6 | 12 | | (28) | (32) | |
| Total noninterest expense | 529 | 531 | 505 | 545 | 551 | (2) | - | | (22) | (4) | |
| Pre-provision net revenue | (122) | 356 | 357 | 343 | 339 | (478) | (134) | | (461) | (136) | |
| Provision (benefit) for credit losses | (25) | 15 | 15 | - | (5) | (40) | | NM | (20) | | NM |
| Income/(loss) before income taxes | (97) | 341 | 342 | 343 | 344 | (438) | (128) | | (441) | (128) | |
| Income tax expense (benefit) | (18) | 66 | 76 | 78 | 78 | (84) | (127) | | (96) | (123) | |
| Net income/(loss) | (79) | 274 | 266 | 266 | 266 | (354) | (129) | | (345) | (130) | |
| Net income attributable to noncontrolling interest | 4 | 4 | 3 | 4 | 4 | - | 5 | | - | (8) | |
| Net income/(loss) attributable to controlling interest | (83) | 271 | 263 | 262 | 262 | (354) | (131) | | (345) | (132) | |
| Preferred stock dividends | 11 | 10 | 5 | 5 | 8 | - | 5 | | 3 | 40 | |
| Net income/(loss) available to common shareholders | $(94) | $260 | $257 | $257 | $254 | $(354) | (136)% | | $(348) | (137)% | |
| Common Share Data | | | | | | | | | |
| EPS | $(0.20) | $0.55 | $0.54 | $0.52 | $0.50 | $(0.75) | (136)% | | $(0.70) | (140)% | |
| Basic shares | 474 | 475 | 480 | 491 | 505 | (1) | - | | (31) | (6) | |
| Diluted EPS | $(0.20) | $0.54 | $0.53 | $0.52 | $0.50 | $(0.74) | (137) | | $(0.70) | (140) | |
| Diluted shares | 474 | 480 | 487 | 496 | 510 | (6) | (1)% | | (37) | (7)% | |
| Effective tax rate | 18.4% | 19.5% | 22.2% | 22.6% | 22.7% | | | | |
ADJUSTEDFINANCIAL DATA - SEE NOTABLE ITEMS ON PAGE 7
| | | | | | 3Q26 Change vs. |
|---|
| ($ in millions, except per share data) | 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q26 | 3Q25 |
| Net interest income (FTE) | $686 | $679 | $670 | $679 | $678 | $7 | 1% | | $8 | 1% | |
| Adjusted noninterest income: | | | | | | | | | |
| Fixed income | 49 | 46 | 53 | 57 | 57 | 3 | 7 | | (8) | (15) | |
| Mortgage banking | 8 | 9 | 9 | 10 | 15 | (1) | (15) | | (7) | (48) | |
| Brokerage, trust, and insurance | 46 | 45 | 43 | 41 | 39 | 1 | 1 | | 7 | 17 | |
| Service charges and fees | 60 | 59 | 58 | 64 | 57 | 1 | 2 | | 2 | 4 | |
| Card and digital banking fees | 19 | 18 | 18 | 18 | 19 | 1 | 4 | | - | 1 | |
| Deferred compensation income | (2) | 15 | (3) | 3 | 8 | (17) | (111) | | (10) | (120) | |
| Adjusted loss on pending sale of mortgage loans | - | - | - | - | | - | | NM | - | | NM |
| Securities gains/(losses) | (1) | - | (1) | - | - | (1) | | NM | (1) | | NM |
| Adjusted other noninterest income | 18 | 18 | 16 | 18 | 19 | - | (2) | | (1) | (3) | |
| Adjusted total noninterest income | $197 | $211 | $195 | $212 | $215 | $(14) | (7)% | | $(18) | (9)% | |
| Total revenue (FTE) | $883 | $890 | $865 | $892 | $893 | $(7) | (1)% | | $(10) | (1)% | |
| Adjusted noninterest expense: | | | | | | | | | |
| Adjusted personnel expense: | | | | | | | | | |
| Adjusted salaries and benefits | $216 | $215 | $211 | $213 | $209 | $1 | - % | | $7 | 4% | |
| Adjusted incentives and commissions | 76 | 76 | 79 | 87 | 79 | - | - | | (3) | (4) | |
| Deferred compensation expense | - | 13 | (2) | 3 | 8 | (13) | (100) | | (8) | (100) | |
| Adjusted total personnel expense | 292 | 304 | 289 | 303 | 296 | (12) | (4) | | (4) | (1) | |
| Adjusted occupancy and equipment | 89 | 86 | 84 | 83 | 80 | 3 | 3 | | 9 | 11 | |
| Adjusted outside services | 78 | 79 | 69 | 95 | 79 | (2) | (2) | | (1) | (2) | |
| Amortization of intangible assets | 8 | 8 | 8 | 9 | 9 | - | - | | (1) | (9) | |
| Adjusted other noninterest expense | 54 | 48 | 55 | 52 | 79 | 6 | 13 | | (25) | (32) | |
| Adjusted total noninterest expense | $521 | $526 | $505 | $541 | $542 | $(5) | (1)% | | $(22) | (4)% | |
| Adjusted pre-provision net revenue | $362 | $364 | $360 | $350 | $351 | $(2) | (1)% | | $12 | 3% | |
| Adjusted provision (benefit) for credit losses | $20 | $15 | $15 | $ - | $(5) | $5 | 33% | | $25 | | NM |
| Adjusted net income/(loss) available to common shareholders | $253 | $262 | $257 | $259 | $263 | $(9) | (4)% | | $(10) | (4)% | |
| Adjusted Common Share Data | | | | | | | | | |
| Adjusted diluted EPS | $0.53 | $0.54 | $0.53 | $0.52 | $0.51 | $(0.01) | (2)% | | $0.02 | 4% | |
| Diluted shares | 479 | 480 | 487 | 496 | 510 | (1) | - % | | (31) | (6)% | |
| Adjusted effective tax rate | 21.0% | 19.5% | 22.2% | 22.7% | 22.7% | | | | |
| Adjusted ROTCE | 14.4% | 15.3% | 15.1% | 15.0% | 15.0% | | | | |
| Adjusted efficiency ratio | 58.9% | 59.1% | 58.3% | 60.7% | 60.8% | | | | |
NOTABLE ITEMS
| (In millions) | 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 |
| Summary of Notable Items: | | | | | |
| Loss on pending sale of mortgage loans (noninterest income) | (473) | - | - | - | - |
| Provision reversal related to pending sale of mortgage loans | 45 | - | - | - | - |
| Restructuring expenses (personnel expense) | (3) | - | - | - | - |
| FDIC special assessment (other noninterest expense) | - | - | - | 7 | 2 |
| Other notable expenses * | (5) | (5) | - | (10) | (10) |
| Total notable items (pre-tax) | $(436) | $(5) | $ - | $(3) | $(8) |
| Tax-related notable items | $ - | $ - | $ - | $ - | $ - |
| Preferred Stock Dividend ** | $ - | $3 | $ - | $ - | $(3) |
*3Q26 and 2Q26 each include $5 million of Visa derivative valuation expenses; 4Q25 and 3Q25 each include $10 million.
** 2Q26 and 3Q25 include deemed dividends on the redemption of Preferred Stock.
IMPACT OF NOTABLE ITEMS:
| ($ in millions, except per share data) | 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 |
| Impacts of Notable Items: | | | | | |
| Noninterest income: | | | | | |
| Loss on pending sale of mortgage loans | $473 | $ - | $ - | $ - | $ - |
| Total noninterest income | $473 | $ - | $ - | $ - | $ - |
| Noninterest expense: | | | | | |
| Personnel expenses: | | | | | |
| Salaries and benefits | $ - | $ - | $ - | $ - | $ - |
| Incentives and commissions | (3) | - | - | - | - |
| Total personnel expenses | (3) | - | - | - | - |
| Other noninterest expense | (5) | (5) | - | (3) | (8) |
| Total noninterest expense | (8) | (5) | - | (3) | (8) |
| Pre-provision net revenue | 481 | 5 | - | 3 | 8 |
| Provision for credit losses | (45) | - | - | - | - |
| Income before income taxes | 436 | 5 | - | 3 | 8 |
| Provision for income taxes | 89 | 1 | - | 1 | 2 |
| Preferred stock dividends * | - | 3 | - | - | (3) |
| Net income/(loss) available to common shareholders | $347 | $1 | $ - | $2 | $9 |
| EPS impact of notable items | $0.73 | $ - | $ - | $ - | $0.01 |
* 2Q26 and 3Q25 include deemed dividends on the redemption of Preferred Stock.
| | | | | | 3Q26 Change vs. |
|---|
| 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q26 | 3Q25 |
|---|
| FINANCIAL RATIOS | | | | | | | | | |
| Quarterly, Unaudited | | | | | | | | | |
| FINANCIAL RATIOS | | | | | | $/bp | % | $/bp | % |
| Net interest margin | 3.48% | 3.49% | 3.52% | 3.51% | 3.55% | (1)bp | | (7)bp | |
| Return on average assets | (0.37)% | 1.31% | 1.30% | 1.27% | 1.29% | (168)bp | | (166)bp | |
| Adjusted return on average assets | 1.25% | 1.33% | 1.30% | 1.28% | 1.32% | (8)bp | | (7)bp | |
| Return on average common equity (“ROCE”) | (4.34)% | 12.33% | 12.26% | 11.99% | 11.74% | (1,667)bp | | (1,608)bp | |
| Return on average tangible common equity (“ROTCE”) | (5.33)% | 15.21% | 15.12% | 14.82% | 14.49% | (2,054)bp | | (1,982)bp | |
| Adjusted ROTCE | 14.36% | 15.29% | 15.12% | 14.96% | 15.00% | (93)bp | | (64)bp | |
| Noninterest income as a % of total revenue | (67.31)% | 23.73% | 22.63% | 23.89% | 24.16% | (9,104)bp | | (9,147)bp | |
| Adjusted noninterest income as a % of total revenue | 22.38% | 23.65% | 22.55% | 23.80% | 24.07% | (127)bp | | (169)bp | |
| Efficiency ratio | 129.56% | 59.88% | 58.54% | 61.33% | 61.92% | 6,968bp | | 6,764bp | |
| Adjusted efficiency ratio | 58.91% | 59.11% | 58.34% | 60.73% | 60.76% | (20)bp | | (185)bp | |
| Allowance for loan and lease losses to loans and leases | 1.08% | 1.09% | 1.13% | 1.15% | 1.23% | (1)bp | | (15)bp | |
| Allowance for credit losses to loans and leases | 1.25% | 1.24% | 1.28% | 1.31% | 1.38% | 1bp | | (13)bp | |
| CAPITAL DATA | | | | | | | | | |
| CET1 capital ratio* | 10.3% | 10.5% | 10.5% | 10.6% | 11.0% | (12)bp | | (62)bp | |
| Tier 1 capital ratio* | 11.7% | 11.8% | 11.9% | 11.5% | 11.9% | (11)bp | | (20)bp | |
| Total capital ratio* | 13.2% | 13.4% | 13.7% | 13.3% | 13.8% | (18)bp | | (55)bp | |
| Tier 1 leverage ratio* | 10.2% | 10.5% | 10.6% | 10.2% | 10.5% | (27)bp | | (23)bp | |
| Risk-weighted assets (“RWA”) (billions)* | $73.9 | $74.6 | $73.3 | $73.0 | $72.0 | $(0.7) | (1)% | $1.9 | 3% |
| Total equity to total assets | 10.82% | 11.21% | 11.25% | 10.90% | 11.11% | (39)bp | | (29)bp | |
| Tangible common equity/tangible assets (“TCE/TA”) | 7.93% | 8.31% | 8.27% | 8.37% | 8.55% | (38)bp | | (62)bp | |
| Period-end shares outstanding (millions) | 474 | 474 | 476 | 485 | 500 | - | - % | (26) | (5)% |
| Cash dividends declared per common share | $0.17 | $0.17 | $0.17 | $0.15 | $0.15 | $ - | - % | $0.02 | 13% |
| Book value per common share | $17.20 | $17.91 | $17.72 | $17.53 | $17.19 | $(0.71) | (4)% | $0.01 | - % |
| Tangible book value per common share | $13.84 | $14.53 | $14.34 | $14.20 | $13.94 | $(0.69) | (5)% | $(0.10) | (1)% |
| SELECTED BALANCE SHEET DATA | | | | | | | | | |
| Loans-to-deposit ratio (period-end balances) | 88.34% | 95.97% | 96.83% | 95.08% | 96.23% | (763)bp | | (789)bp | |
| Loans-to-deposit ratio (average balances) | 94.07% | 96.87% | 95.44% | 95.33% | 95.24% | (280)bp | | (117)bp | |
| Full-time equivalent associates | 7,375 | 7,422 | 7,369 | 7,373 | 7,341 | (47) | (1)% | 34 | - % |
*Current quarter is an estimate.
CONSOLIDATED PERIOD-END BALANCE SHEET
| | | | | | 3Q26 Change vs. |
|---|
| (In millions) | 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q26 | 3Q25 |
| Assets: | | | | | | $ | % | $ | % |
| Loans and leases: | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | $36,309 | $37,296 | $36,467 | $35,905 | $34,401 | $(986) | (3)% | | $1,908 | 6% | |
| Commercial real estate | 13,692 | 13,595 | 13,420 | 13,563 | 13,674 | 97 | 1 | | 17 | - | |
| Total Commercial | 50,001 | 50,891 | 49,887 | 49,468 | 48,076 | (890) | (2) | | 1,925 | 4 | |
| Consumer real estate | 9,238 | 13,869 | 13,928 | 14,107 | 14,403 | (4,632) | (33) | | (5,165) | (36) | |
| Credit card and other | 570 | 570 | 562 | 580 | 579 | - | - | | (9) | (2) | |
| Total Consumer | 9,807 | 14,439 | 14,490 | 14,688 | 14,982 | (4,632) | (32) | | (5,175) | (35) | |
| Loans and leases, net of unearned income | 59,808 | 65,330 | 64,377 | 64,156 | 63,058 | (5,522) | (8) | | (3,249) | (5) | |
| Loans held for sale | 4,368 | 501 | 562 | 406 | 501 | 3,867 | | NM | 3,867 | | NM |
| Investment securities | 8,751 | 9,062 | 9,351 | 9,382 | 9,332 | (311) | (3) | | (580) | (6) | |
| Trading securities | 1,873 | 1,417 | 1,812 | 1,904 | 2,070 | 456 | 32 | | (197) | (10) | |
| Interest-bearing deposits with banks | 1,798 | 1,158 | 1,116 | 1,125 | 1,228 | 640 | 55 | | 570 | 46 | |
| Federal funds sold and securities purchased under agreements to resell | 1,107 | 594 | 754 | 634 | 774 | 512 | 86 | | 332 | 43 | |
| Total interest earning assets | 77,706 | 78,063 | 77,971 | 77,606 | 76,963 | (357) | - | | 742 | 1 | |
| Cash and due from banks | 930 | 1,034 | 889 | 961 | 912 | (105) | (10) | | 17 | 2 | |
| Goodwill and other intangible assets, net | 1,591 | 1,599 | 1,607 | 1,615 | 1,624 | (8) | (1) | | (33) | (2) | |
| Premises and equipment, net | 561 | 545 | 539 | 544 | 553 | 16 | 3 | | 8 | 1 | |
| Allowance for loan and lease losses | (644) | (709) | (730) | (738) | (777) | 65 | 9 | | 132 | 17 | |
| Other assets | 4,175 | 3,906 | 3,855 | 3,889 | 3,916 | 269 | 7 | | 259 | 7 | |
| Total assets | $84,318 | $84,437 | $84,132 | $83,876 | $83,192 | $(120) | - % | | $1,125 | 1% | |
| Liabilities and Shareholders' Equity: | | | | | | | | | |
| Deposits: | | | | | | | | | |
| Savings | $25,983 | $25,553 | $26,007 | $26,010 | $26,365 | $430 | 2% | | $(382) | (1)% | |
| Time deposits | 8,793 | 10,018 | 7,125 | 6,485 | 6,201 | (1,225) | (12) | | 2,592 | 42 | |
| Other interest-bearing deposits | 17,324 | 16,508 | 17,440 | 19,158 | 16,936 | 816 | 5 | | 387 | 2 | |
| Total interest-bearing deposits | 52,100 | 52,078 | 50,572 | 51,653 | 49,502 | 22 | - | | 2,598 | 5 | |
| Trading liabilities | 997 | 533 | 666 | 607 | 662 | 465 | 87 | | 336 | 51 | |
| Federal funds purchased and securities sold under agreements to repurchase | 1,967 | 2,161 | 2,193 | 3,012 | 2,675 | (194) | (9) | | (708) | (26) | |
| Short-term borrowings | 837 | 842 | 1,975 | 241 | 1,596 | (6) | (1) | | (759) | (48) | |
| Term borrowings | 1,319 | 1,321 | 1,318 | 1,321 | 1,328 | (2) | - | | (9) | (1) | |
| Total interest-bearing liabilities | 57,220 | 56,935 | 56,725 | 56,835 | 55,763 | 285 | 1 | | 1,457 | 3 | |
| Noninterest-bearing deposits | 15,600 | 15,994 | 15,910 | 15,823 | 16,023 | (394) | (2) | | (422) | (3) | |
| Other liabilities | 2,372 | 2,045 | 2,032 | 2,076 | 2,163 | 327 | 16 | | 209 | 10 | |
| Total liabilities | 75,192 | 74,974 | 74,667 | 74,734 | 73,948 | 218 | - | | 1,244 | 2 | |
| Shareholders' Equity: | | | | | | | | | |
| Preferred stock | 682 | 682 | 741 | 349 | 349 | - | - | | 333 | 95 | |
| Common stock | 296 | 296 | 297 | 303 | 313 | - | - | | (17) | (5) | |
| Capital surplus | 3,664 | 3,653 | 3,759 | 3,974 | 4,288 | 11 | - | | (624) | (15) | |
| Retained earnings | 5,207 | 5,383 | 5,205 | 5,030 | 4,848 | (176) | (3) | | 360 | 7 | |
| Accumulated other comprehensive loss, net | (1,019) | (846) | (832) | (809) | (849) | (173) | (20) | | (170) | (20) | |
| Combined shareholders' equity | 8,830 | 9,168 | 9,170 | 8,847 | 8,949 | (338) | (4) | | (118) | (1) | |
| Noncontrolling interest | 295 | 295 | 295 | 295 | 295 | - | - | | - | - | |
| Total shareholders' equity | 9,125 | 9,464 | 9,465 | 9,142 | 9,244 | (338) | (4) | | (119) | (1) | |
| Total liabilities and shareholders' equity | $84,318 | $84,437 | $84,132 | $83,876 | $83,192 | $(120) | - % | | $1,125 | 1% | |
| Memo: | | | | | | | | | |
| Total deposits | $67,701 | $68,073 | $66,482 | $67,477 | $65,525 | $(372) | (1)% | | $2,176 | 3% | |
| Loans to mortgage companies | $3,869 | $4,759 | $4,641 | $4,703 | $3,926 | $(891) | (19)% | | $(58) | (1)% | |
| Unfunded Loan Commitments: | | | | | | | | | |
| Commercial | $20,677 | $20,164 | $18,980 | $18,644 | $18,485 | $513 | 3% | | $2,192 | 12% | |
| Consumer | $4,052 | $4,016 | $4,022 | $4,002 | $4,036 | $36 | 1% | | $16 | - % | |
Numbers may not total due to rounding. See footnote disclosures on page 18 and glossary of terms on page 24.
CONSOLIDATED AVERAGE BALANCE SHEET
| | | | | | 3Q26 Change vs. |
|---|
| (In millions) | 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q26 | 3Q25 |
| Assets: | | | | | | $ | % | $ | % |
| Loans and leases: | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | $36,530 | $36,745 | $35,208 | $35,005 | $34,011 | $(215) | (1)% | $2,519 | 7% |
| Commercial real estate | 13,655 | 13,510 | 13,417 | 13,587 | 13,772 | 145 | 1 | (117) | (1) |
| Total Commercial | 50,185 | 50,256 | 48,625 | 48,591 | 47,784 | (71) | - | 2,401 | 5 |
| Consumer real estate | 13,725 | 13,873 | 13,998 | 14,255 | 14,409 | (148) | (1) | (684) | (5) |
| Credit card and other | 579 | 566 | 569 | 586 | 594 | 13 | 2 | (15) | (3) |
| Total Consumer | 14,304 | 14,439 | 14,567 | 14,841 | 15,004 | (136) | (1) | (700) | (5) |
| Loans and leases, net of unearned income | 64,489 | 64,695 | 63,192 | 63,432 | 62,787 | (206) | - | 1,701 | 3 |
| Loans held-for-sale | 459 | 532 | 479 | 515 | 454 | (73) | (14) | 5 | 1 |
| Investment securities | 8,915 | 9,218 | 9,454 | 9,321 | 9,321 | (304) | (3) | (406) | (4) |
| Trading securities | 1,663 | 1,677 | 1,796 | 1,798 | 1,625 | (15) | (1) | 38 | 2 |
| Interest-bearing deposits with banks | 1,982 | 1,168 | 1,233 | 1,218 | 1,272 | 814 | 70 | 710 | 56 |
| Federal funds sold and securities purchased under agreements to resell | 949 | 669 | 756 | 743 | 573 | 279 | 42 | 375 | 65 |
| Total interest earning assets | 78,456 | 77,960 | 76,910 | 77,027 | 76,032 | 496 | 1 | 2,424 | 3 |
| Cash and due from banks | 912 | 923 | 936 | 900 | 860 | (11) | (1) | 52 | 6 |
| Goodwill and other intangible assets, net | 1,595 | 1,603 | 1,611 | 1,619 | 1,628 | (8) | (1) | (34) | (2) |
| Premises and equipment, net | 554 | 544 | 543 | 548 | 556 | 10 | 2 | (2) | - |
| Allowance for loan and lease losses | (698) | (732) | (750) | (774) | (809) | 33 | 5 | 111 | 14 |
| Other assets | 3,852 | 3,799 | 3,795 | 3,760 | 3,781 | 53 | 1 | 71 | 2 |
| Total assets | $84,671 | $84,097 | $83,045 | $83,081 | $82,049 | $574 | 1% | $2,622 | 3% |
| Liabilities and shareholders' equity: | | | | | | | | | |
| Deposits: | | | | | | | | | |
| Savings | $26,046 | $25,618 | $26,148 | $26,693 | $26,326 | $428 | 2% | $(279) | (1)% |
| Time deposits | 9,395 | 8,501 | 6,755 | 6,205 | 6,871 | 895 | 11 | 2,524 | 37 |
| Other interest-bearing deposits | 17,196 | 16,914 | 17,679 | 17,573 | 16,866 | 282 | 2 | 330 | 2 |
| Total interest-bearing deposits | 52,638 | 51,033 | 50,582 | 50,470 | 50,063 | 1,604 | 3 | 2,575 | 5 |
| Trading liabilities | 678 | 645 | 729 | 722 | 549 | 32 | 5 | 129 | 24 |
| Federal funds purchased and securities sold under agreements to repurchase | 1,799 | 2,518 | 2,649 | 2,807 | 2,631 | (719) | (29) | (833) | (32) |
| Short-term borrowings | 660 | 1,400 | 894 | 470 | 387 | (740) | (53) | 273 | 71 |
| Term borrowings | 1,321 | 1,319 | 1,319 | 1,323 | 1,335 | 2 | - | (15) | (1) |
| Total interest-bearing liabilities | 57,095 | 56,916 | 56,173 | 55,792 | 54,965 | 179 | - | 2,130 | 4 |
| Noninterest-bearing deposits | 15,915 | 15,749 | 15,628 | 16,072 | 15,862 | 166 | 1 | 54 | - |
| Other liabilities | 2,103 | 1,988 | 1,999 | 2,082 | 1,999 | 115 | 6 | 104 | 5 |
| Total liabilities | 75,112 | 74,652 | 73,800 | 73,946 | 72,825 | 460 | 1 | 2,287 | 3 |
| Shareholders' Equity: | | | | | | | | | |
| Preferred stock | 682 | 682 | 436 | 349 | 350 | - | - | 332 | 95 |
| Common stock | 296 | 297 | 300 | 307 | 316 | (1) | - | (19) | (6) |
| Capital surplus | 3,657 | 3,703 | 3,866 | 4,095 | 4,379 | (45) | (1) | (722) | (16) |
| Retained earnings | 5,513 | 5,310 | 5,129 | 4,910 | 4,798 | 203 | 4 | 715 | 15 |
| Accumulated other comprehensive loss, net | (885) | (842) | (781) | (821) | (913) | (43) | (5) | 29 | 3 |
| Combined shareholders' equity | 9,263 | 9,149 | 8,950 | 8,840 | 8,928 | 114 | 1 | 335 | 4 |
| Noncontrolling interest | 295 | 295 | 295 | 295 | 295 | - | - | - | - |
| Total shareholders' equity | 9,558 | 9,444 | 9,245 | 9,135 | 9,224 | 114 | 1 | 335 | 4 |
| Total liabilities and shareholders' equity | $84,671 | $84,097 | $83,045 | $83,081 | $82,049 | $574 | 1% | $2,622 | 3% |
| Memo: | | | | | | | | | |
| Total deposits | $68,553 | $66,782 | $66,210 | $66,542 | $65,924 | $1,771 | 3% | $2,629 | 4% |
| Loans to mortgage companies | $4,092 | $4,284 | $3,884 | $4,160 | $3,628 | $(192) | (4)% | $463 | 13% |
| | | | | | | | | | | 3Q26 Change vs. |
|---|
| 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q26 | 3Q25 |
|---|
| | | | | | | | | | | $/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 | $751 | | 5.94% | $735 | | 5.87% | $707 | | 5.89% | $743 | | 6.07% | $767 | | 6.37% | $16 | 2% | $(16) | (2)% |
| Consumer | 180 | | 5.00 | 180 | | 4.97 | 181 | | 4.99 | 187 | | 5.02 | 191 | | 5.07 | - | - | (11) | (6) |
| Loans and leases, net of unearned income | 931 | | 5.73 | 915 | | 5.67 | 887 | | 5.68 | 930 | | 5.83 | 957 | | 6.06 | 16 | 2 | (27) | (3) |
| Loans held-for-sale | 7 | | 6.22 | 8 | | 6.18 | 7 | | 6.26 | 8 | | 6.45 | 8 | | 6.86 | (1) | (13) | (1) | (8) |
| Investment securities | 69 | | 3.10 | 70 | | 3.05 | 71 | | 3.02 | 71 | | 3.06 | 72 | | 3.09 | (1) | (2) | (3) | (4) |
| Trading securities | 23 | | 5.48 | 23 | | 5.55 | 24 | | 5.25 | 25 | | 5.57 | 24 | | 5.81 | (1) | (2) | (1) | (4) |
| Interest-bearing deposits with banks | 19 | | 3.75 | 11 | | 3.69 | 11 | | 3.69 | 12 | | 3.97 | 14 | | 4.41 | 8 | 74 | 5 | 32 |
| Federal funds sold and securities purchased under agreements | 9 | | 3.58 | 6 | | 3.56 | 7 | | 3.55 | 7 | | 3.86 | 6 | | 4.20 | 3 | 44 | 2 | 41 |
| Interest income | $1,057 | | 5.35% | $1,033 | | 5.31% | $1,008 | | 5.29% | $1,054 | | 5.44% | $1,081 | | 5.65% | $24 | 2% | $(24) | (2)% |
| Interest-bearing liabilities/Interest expense: | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | | | |
| Savings | $151 | | 2.29% | $138 | | 2.17% | $138 | | 2.14% | $169 | | 2.51% | $184 | | 2.78% | $12 | 9% | $(34) | (18)% |
| Time deposits | 85 | | 3.58 | 74 | | 3.48 | 56 | | 3.39 | 55 | | 3.49 | 64 | | 3.71 | 11 | 15 | 21 | 32 |
| Other interest-bearing deposits | 90 | | 2.07 | 84 | | 1.99 | 89 | | 2.04 | 98 | | 2.22 | 102 | | 2.41 | 6 | 7 | (13) | (12) |
| Total interest-bearing deposits | 325 | | 2.45 | 296 | | 2.33 | 284 | | 2.28 | 322 | | 2.53 | 351 | | 2.78 | 29 | 10 | (26) | (7) |
| Trading liabilities | 7 | | 4.32 | 6 | | 4.00 | 7 | | 3.81 | 7 | | 3.76 | 5 | | 3.93 | 1 | 15 | 2 | 36 |
| Federal funds purchased and securities sold under agreements to repurchase | 13 | | 2.92 | 19 | | 3.09 | 20 | | 2.98 | 23 | | 3.21 | 23 | | 3.52 | (6) | (32) | (10) | (43) |
| Short-term borrowings | 6 | | 3.86 | 13 | | 3.83 | 8 | | 3.78 | 5 | | 4.08 | 4 | | 4.39 | (7) | (52) | 2 | 50 |
| Term borrowings | 19 | | 5.67 | 19 | | 5.65 | 19 | | 5.65 | 19 | | 5.76 | 19 | | 5.82 | - | - | (1) | (4) |
| Interest expense | 371 | | 2.58 | 354 | | 2.49 | 337 | | 2.43 | 375 | | 2.67 | 403 | | 2.91 | 17 | 5 | (33) | (8) |
| Net interest income - tax equivalent basis | 686 | | 2.77 | 679 | | 2.82 | 670 | | 2.86 | 679 | | 2.77 | 678 | | 2.74 | 7 | 1 | 8 | 1 |
| Fully taxable equivalent adjustment | (3) | | 0.71 | (3) | | 0.67 | (3) | | 0.66 | (3) | | 0.74 | (3) | | 0.81 | - | - | - | 10 |
| Net interest income | $683 | | 3.48% | $676 | | 3.49% | $667 | | 3.52% | $676 | | 3.51% | $674 | | 3.55% | $7 | 1% | $9 | 1% |
| Memo: | | | | | | | | | | | | | | |
| Total loan yield | | 5.73% | | 5.67% | | 5.68% | | 5.83% | | 6.06% | 6bp | | (33)bp | |
| Total deposit cost | | 1.88% | | 1.78% | | 1.74% | | 1.92% | | 2.11% | 10bp | | (23)bp | |
| Total funding cost | | 2.01% | | 1.95% | | 1.90% | | 2.07% | | 2.26% | 6bp | | (25)bp | |
| Average loans and leases, net of unearned income | $64,489 | | | $64,695 | | | $63,192 | | | $63,432 | | | $62,787 | | | $(206) | - % | $1,701 | 3% |
| Average deposits | | 68,553 | | | 66,782 | | | 66,210 | | | 66,542 | | | 65,924 | | 1,771 | 3% | 2,629 | 4% |
| Average funded liabilities | | 73,010 | | | 72,664 | | | 71,801 | | | 71,864 | | | 70,827 | | $345 | - % | $2,183 | 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 | 3Q26 change vs. |
|---|
| CONSOLIDATED NONPERFORMING LOANS AND LEASES ("NPL") |
| Quarterly, Unaudited | | | | | | | | | |
| (In millions, except ratio data) | 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q26 | 3Q25 |
| Nonperforming loans and leases | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | $194 | $205 | $219 | $224 | $211 | $(11) | (6)% | $(17) | (8)% |
| Commercial real estate | 145 | 184 | 243 | 239 | 254 | (40) | (22) | (110) | (43) |
| Consumer real estate | 142 | 141 | 144 | 140 | 139 | 1 | 1 | 3 | 2 |
| Credit card and other | 1 | 1 | 1 | 1 | 1 | - | 65 | - | (14) |
| Total nonperforming loans and leases | $482 | $531 | $606 | $604 | $605 | $(49) | (9)% | $(124) | (20)% |
| Asset Quality Ratio | | | | | | | | | |
| Nonperforming loans and leases to loans and leases | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | 0.53% | 0.55% | 0.60% | 0.62% | 0.61% | | | | |
| Commercial real estate | 1.06 | 1.36 | 1.81 | 1.76 | 1.86 | | | | |
| Consumer real estate | 1.53 | 1.02 | 1.03 | 0.99 | 0.96 | | | | |
| Credit card and other | 0.22 | 0.13 | 0.19 | 0.16 | 0.25 | | | | |
| Total nonperforming loans and leases to loans and leases | 0.81% | 0.81% | 0.94% | 0.94% | 0.96% | | | | |
| As of | 3Q26 change vs. |
|---|
| CONSOLIDATED LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING |
| Quarterly, Unaudited | | | | | | | | | |
| (In millions) | 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q26 | 3Q25 |
| Loans and leases 90 days or more past due and accruing | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | $1 | $1 | $1 | $1 | $1 | $ - | (31)% | | $ - | (8)% | |
| Commercial real estate | - | - | - | - | - | - | | NM | - | | NM |
| Consumer real estate | 7 | - | 2 | 6 | 6 | 6 | | NM | 1 | 15 | |
| Credit card and other | 1 | 1 | 1 | 1 | 2 | 1 | 68 | | - | (20) | |
| Total loans and leases 90 days or more past due and accruing | $9 | $2 | $3 | $8 | $9 | $7 | | NM | $ - | 3% | |
| As of | 3Q26 change vs. |
|---|
| CONSOLIDATED NET CHARGE-OFFS (RECOVERIES) |
| Quarterly, Unaudited | | | | | | | | | |
| (In millions, except ratio data) | 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q26 | 3Q25 |
| Charge-offs, Recoveries and Related Ratios | | | | | | $ | % | $ | % |
| Gross Charge-offs | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | $36 | $32 | $36 | $39 | $25 | $4 | 12% | | $11 | 45% | |
| Commercial real estate | 3 | 3 | 4 | 2 | 3 | - | (9) | | (1) | (20) | |
| Consumer real estate | 2 | 1 | 1 | 1 | 1 | 1 | | NM | 1 | | NM |
| Credit card and other | 4 | 5 | 4 | 4 | 6 | - | (11) | | (2) | (39) | |
| Total gross charge-offs | $45 | $41 | $45 | $47 | $36 | $4 | 10% | | $9 | 25% | |
| Gross Recoveries | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | $(6) | $(5) | $(14) | $(13) | $(6) | $(1) | (28)% | | $ - | 4% | |
| Commercial real estate | - | - | - | - | - | - | 90 | | - | 94 | |
| Consumer real estate | (2) | (2) | (2) | (2) | (1) | (1) | (40) | | (1) | (46) | |
| Credit card and other | (1) | (1) | (1) | (1) | (1) | - | 37 | | - | 24 | |
| Total gross recoveries | $(9) | $(8) | $(17) | $(16) | $(9) | $(1) | (18)% | | $ - | - % | |
| Net Charge-offs (Recoveries) | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | $30 | $27 | $23 | $26 | $19 | $3 | 10% | | $11 | 62% | |
| Commercial real estate | 3 | 3 | 3 | 2 | 3 | - | (5) | | (1) | (16) | |
| Consumer real estate | - | (1) | - | (1) | (1) | - | 53 | | - | 54 | |
| Credit card and other | 3 | 4 | 3 | 3 | 5 | - | - | | (2) | (42) | |
| Total net charge-offs | $36 | $33 | $29 | $30 | $26 | $3 | 9% | | $9 | 34% | |
| Annualized Net Charge-off (Recovery) Rates | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | 0.33% | 0.30% | 0.26% | 0.30% | 0.22% | | | | |
| Commercial real estate | 0.08 | 0.08 | 0.10 | 0.04 | 0.09 | | | | |
| Consumer real estate | (0.01) | (0.02) | (0.01) | (0.02) | (0.02) | | | | |
| Credit card and other | 2.11 | 2.17 | 2.10 | 2.31 | 3.54 | | | | |
| Total loans and leases | 0.22% | 0.20% | 0.18% | 0.19% | 0.17% | | | | |
| As of | 3Q26 Change vs. |
|---|
| CONSOLIDATED ALLOWANCE FOR LOAN AND LEASE LOSSES AND RESERVE FOR UNFUNDED COMMITMENTS |
| Quarterly, Unaudited | | | | | | | | | |
| (In millions) | 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q26 | 3Q25 |
| Summary of Changes in the Components of the Allowance For Credit Losses | | | | | | $ | % | $ | % |
| Allowance for loan and lease losses - beginning | $709 | $730 | $738 | $777 | $814 | $(21) | (3)% | | $(105) | (13)% | |
| Charge-offs: | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | (36) | (32) | (36) | (39) | (25) | (4) | (12) | | (11) | (45) | |
| Commercial real estate | (3) | (3) | (4) | (2) | (3) | - | 9 | | 1 | 20 | |
| Consumer real estate | (2) | (1) | (1) | (1) | (1) | (1) | | NM | (1) | | NM |
| Credit card and other | (4) | (5) | (4) | (4) | (6) | - | 11 | | 2 | 39 | |
| Total charge-offs | (45) | (41) | (45) | (47) | (36) | (4) | (10) | | (9) | (25) | |
| Recoveries: | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | 6 | 5 | 14 | 13 | 6 | 1 | 28 | | - | (4) | |
| Commercial real estate | - | - | - | - | - | - | (90) | | - | (94) | |
| Consumer real estate | 2 | 2 | 2 | 2 | 1 | 1 | 40 | | 1 | 46 | |
| Credit card and other | 1 | 1 | 1 | 1 | 1 | - | (37) | | - | (24) | |
| Total Recoveries | 9 | 8 | 17 | 16 | 9 | 1 | 18 | | - | - | |
| Provision for loan and lease losses: | | | | | | | | | |
| Commercial, financial, and industrial (C&I) | 20 | 24 | 41 | 28 | 5 | (4) | (16) | | 15 | | NM |
| Commercial real estate | 6 | (3) | (17) | (26) | (5) | 9 | | NM | 11 | | NM |
| Consumer real estate * | (57) | (12) | (6) | (13) | (15) | (46) | | NM | (42) | | NM |
| Credit card and other | 2 | 3 | 3 | 3 | 4 | (1) | (23) | | (2) | (45) | |
| Total provision for loan and lease losses: | (29) | 12 | 20 | (8) | (11) | (41) | | NM | (18) | | NM |
| Allowance for loan and lease losses - ending | $644 | $709 | $730 | $738 | $777 | $(65) | (9)% | | $(132) | (17)% | |
| Reserve for unfunded commitments - beginning | $99 | $96 | $101 | $93 | $87 | $3 | 3% | | $12 | 14% | |
| Provision for unfunded commitments | 4 | 3 | (5) | 8 | 6 | 1 | 33 | | (2) | (33) | |
| Reserve for unfunded commitments - ending | $103 | $99 | $96 | $101 | $93 | $4 | 4% | | $10 | 11% | |
| Total allowance for credit losses - ending | $747 | $808 | $826 | $839 | $870 | $(61) | (7)% | | $(122) | (14)% | |
*3Q26 includes a $45 million provision reversal related to the classification change of targeted mortgage loans to held for sale as a part of the expected portfolio sale.
| As of |
|---|
| 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 |
|---|
| 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) | 0.94% | 0.94% | 0.97% | 0.93% | 0.97% |
| Commercial real estate | 1.11% | 1.10% | 1.16% | 1.30% | 1.49% |
| Consumer real estate | 1.44% | 1.37% | 1.44% | 1.46% | 1.52% |
| Credit card and other | 3.29% | 3.42% | 3.49% | 3.40% | 3.42% |
| Total allowance for loan and lease losses to loans and leases | 1.08% | 1.09% | 1.13% | 1.15% | 1.23% |
| Allowance for loan and lease losses to nonperforming loans and leases | | | | | |
| Commercial, financial, and industrial (C&I) | 175% | 171% | 162% | 150% | 158% |
| Commercial real estate | 105% | 81% | 64% | 74% | 80% |
| Consumer real estate | 94% | 135% | 140% | 147% | 158% |
| Credit card and other | 1,524% | 2,617% | 1,842% | 2,096% | 1,380% |
| Total allowance for loan and lease losses to nonperforming loans and leases | 134% | 133% | 120% | 122% | 128% |
| Allowance for credit losses ratios | | | | | |
| Total allowance for credit losses to loans and leases | 1.25% | 1.24% | 1.28% | 1.31% | 1.38% |
| Total allowance for credit losses to nonperforming loans and leases | 155% | 152% | 136% | 139% | 144% |
COMMERCIAL, CONSUMER, AND WEALTH
| | | | | | 3Q26 Change vs. |
|---|
| 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q26 | 3Q25 |
|---|
| | | | | | $/bp | % | $/bp | % |
|---|
| Income Statement (millions) | | | | | | | | | |
| Net interest income | $667 | $654 | $649 | $662 | $671 | $13 | 2% | | $(4) | (1)% | |
| Noninterest income | 125 | 123 | 119 | 124 | 117 | 2 | 2 | | 9 | 8 | |
| Total revenue | 792 | 777 | 768 | 786 | 787 | 15 | 2 | | 5 | 1 | |
| Noninterest expense | 382 | 376 | 368 | 380 | 366 | 6 | 2 | | 16 | 4 | |
| Pre-provision net revenue | 410 | 401 | 400 | 407 | 421 | 9 | 2 | | (11) | (3) | |
| Provision for credit losses | 15 | 1 | 8 | (2) | 2 | 14 | | NM | 13 | | NM |
| Income before income tax expense | 395 | 400 | 393 | 409 | 420 | (5) | (1) | | (24) | (6) | |
| Income tax expense | 95 | 96 | 94 | 98 | 100 | (1) | (1) | | (5) | (5) | |
| Net income | $300 | $304 | $299 | $311 | $319 | $(4) | (1)% | | $(19) | (6)% | |
| Average Balances (billions) | | | | | | | | | |
| Total loans and leases | $57.5 | $57.5 | $56.5 | $56.5 | $56.4 | $ - | - % | | $1.1 | 2% | |
| Interest-earning assets | 57.5 | 57.5 | 56.5 | 56.5 | 56.4 | - | - | | 1.1 | 2 | |
| Total assets | 60.1 | 60.0 | 59.0 | 59.0 | 58.8 | 0.1 | - | | 1.3 | 2 | |
| Total deposits | 59.3 | 58.1 | 58.7 | 59.4 | 59.1 | 1.2 | 2 | | 0.2 | - | |
| Key Metrics | | | | | | | | | |
| Net interest margin | 4.62% | 4.58% | 4.68% | 4.67% | 4.74% | 4bp | | (12)bp | |
| Efficiency ratio | 48.25% | 48.40% | 47.86% | 48.31% | 46.50% | (15)bp | | 175bp | |
| Loans-to-deposits ratio (period-end balances) | 88.79% | 98.64% | 95.94% | 94.83% | 94.56% | (985)bp | | (577)bp | |
| Loans-to-deposits ratio (average balances) | 96.93% | 98.90% | 96.19% | 95.09% | 95.30% | (197)bp | | 163bp | |
| Return on average assets (annualized) | 1.98% | 2.03% | 2.05% | 2.09% | 2.15% | (5)bp | | (17)bp | |
| Return on allocated equity | 20.31% | 20.80% | 20.57% | 20.34% | 20.37% | (49)bp | | (6)bp | |
| Financial center locations | 408 | 407 | 410 | 412 | 413 | 1 | | (5) | |
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 corporate & specialty finance, 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
| | | | | | 3Q26 Change vs. |
|---|
| 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q26 | 3Q25 |
|---|
| | | | | | $/bp | % | $/bp | % |
|---|
| Income Statement (millions) | | | | | | | | | |
| Net interest income | $67 | $67 | $62 | $66 | $60 | $ - | - % | $7 | 12% | |
| Noninterest income | 59 | 58 | 64 | 69 | 74 | 2 | 3 | (15) | (20) | |
| Total revenue | 127 | 125 | 126 | 135 | 134 | 2 | 2 | (7) | (6) | |
| Noninterest expense | 78 | 79 | 83 | 85 | 83 | - | - | (4) | (5) | |
| Pre-provision net revenue | 48 | 46 | 43 | 50 | 52 | 2 | 5 | (3) | (6) | |
| Provision for credit losses | 8 | 23 | 9 | 3 | (1) | (15) | (67) | 8 | | NM |
| Income before income tax expense | 41 | 23 | 34 | 47 | 52 | 17 | 75 | (11) | (22) | |
| Income tax expense | 10 | 6 | 8 | 11 | 13 | 4 | 78 | (3) | (22) | |
| Net income | $31 | $18 | $26 | $36 | $40 | $13 | 74% | $(9) | (22)% | |
| Average Balances (billions) | | | | | | | | | |
| Total loans and leases | $6.8 | $7.0 | $6.3 | $6.5 | $6.0 | $(0.2) | (3)% | $0.8 | 14% | |
| Interest-earning assets | 9.7 | 9.9 | 9.4 | 9.6 | 8.7 | (0.2) | (2) | 1.0 | 12 | |
| Total assets | 10.3 | 10.5 | 10.1 | 10.3 | 9.4 | (0.2) | (2) | 1.0 | 10 | |
| Total deposits | 2.0 | 2.0 | 2.3 | 2.3 | 2.2 | - | 1 | (0.2) | (8) | |
| Key Metrics | | | | | | | | | |
| Fixed income product average daily revenue (thousands) | $629 | $594 | $742 | $765 | $771 | $35 | 6% | $(142) | (18)% | |
| Net interest margin | 2.78% | 2.73% | 2.68% | 2.72% | 2.77% | 5bp | | 1bp | |
| Efficiency ratio | 61.84% | 63.00% | 66.01% | 62.77% | 61.54% | (116)bp | | 30bp | |
| Loans-to-deposits ratio (period-end balances) | 326% | 419% | 354% | 343% | 319% | (9,301)bp | | 720bp | |
| Loans-to-deposits ratio (average balances) | 341% | 353% | 280% | 288% | 276% | (1,130)bp | | 6,560bp | |
| Return on average assets (annualized) | 1.19% | 0.68% | 1.03% | 1.38% | 1.68% | 51bp | | (49)bp | |
| Return on allocated equity | 19.89% | 11.50% | 17.55% | 24.11% | 26.29% | 838bp | | (641)bp | |
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
| 3Q26 Change vs. |
|---|
| 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 | 2Q26 | 3Q25 |
|---|
| Income Statement (millions) | | | | | | | | | |
| Net interest income/(expense) | $(51) | $(45) | $(44) | $(51) | $(56) | $(6) | (13)% | | $5 | 9% | |
| Noninterest income | (461) | 30 | 12 | 18 | 25 | (490) | | NM | (485) | | NM |
| Total revenues | (512) | (15) | (32) | (33) | (32) | (496) | | NM | (480) | | NM |
| Noninterest expense | 68 | 76 | 54 | 80 | 102 | (8) | (10) | | (34) | (33) | |
| Pre-provision net revenue | (580) | (91) | (86) | (113) | (134) | (489) | | NM | (446) | | NM |
| Provision for credit losses | (47) | (9) | (2) | (1) | (6) | (39) | | NM | (41) | | NM |
| Income before income tax expense | (533) | (83) | (84) | (112) | (128) | (450) | | NM | (405) | | NM |
| Income tax expense (benefit) | (123) | (35) | (26) | (31) | (35) | (87) | | NM | (88) | | NM |
| Net income/(loss) | $(410) | $(47) | $(58) | $(81) | $(93) | $(363) | | NM | $(317) | | NM |
| Average Balance Sheet (billions) | | | | | | | | | |
| Interest bearing assets | $11.3 | $10.6 | $11.1 | $11.0 | $11.0 | $0.7 | 7% | | $0.3 | 3% | |
| Total assets | 14.3 | 13.6 | 14.0 | 13.8 | 13.9 | 0.7 | 5 | | 0.4 | 3 | |
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 19.
Credit card and other includes $146 million of commercial credit card balances at September 30, 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. In 3Q26, all potential common shares were antidilutive due to the net loss attributable to common shareholders for that period. 3Q26 adjusted results include a dilutive impact on shares.
Balance fluctuates based on market conditions. 1Q26 decrease was driven by equity market valuations.
Preferred Stock balance was impacted by the issuance of Series H Preferred Stock in 1Q26.
In 3Q26, FHN initiated preparations to sell approximately $4.5 billion of consumer mortgages. These mortgage loans were previously included in the Commercial, Consumer, and Wealth segment and were reclassified to loans HFS. The transaction resulted in a pre-tax loss of $473 million to noninterest income related to recognition of the pending mortgage portfolio sale impacts in 3Q26 including valuation adjustments and transaction costs and closed early in 4Q26.
| CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION | | | | | |
| Quarterly, Unaudited | | | | | |
| ($ in millions, except per share data) | 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 |
| Tangible Common Equity (Non-GAAP) | | | | | |
| (A) Total equity (GAAP) | $9,125 | $9,464 | $9,465 | $9,142 | $9,244 |
| Less: Noncontrolling interest (a) | 295 | 295 | 295 | 295 | 295 |
| Less: Preferred stock (a) | 682 | 682 | 741 | 349 | 349 |
| (B) Total common equity | $8,149 | $8,487 | $8,429 | $8,498 | $8,600 |
| Less: Intangible assets (GAAP) (b) | 1,591 | 1,599 | 1,607 | 1,615 | 1,624 |
| (C) Tangible common equity (Non-GAAP) | $6,558 | $6,888 | $6,822 | $6,882 | $6,976 |
| Tangible Assets (Non-GAAP) | | | | | |
| (D) Total assets (GAAP) | $84,318 | $84,437 | $84,132 | $83,876 | $83,192 |
| Less: Intangible assets (GAAP) (b) | 1,591 | 1,599 | 1,607 | 1,615 | 1,624 |
| (E) Tangible assets (Non-GAAP) | $82,727 | $82,839 | $82,525 | $82,261 | $81,568 |
| Period-end Shares Outstanding | | | | | |
| (F) Period-end shares outstanding | 474 | 474 | 476 | 485 | 500 |
| Ratios | | | | | |
| (A)/(D) Total equity to total assets (GAAP) | 10.82% | 11.21% | 11.25% | 10.90% | 11.11% |
| (C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP) | 7.93% | 8.31% | 8.27% | 8.37% | 8.55% |
| (B)/(F) Book value per common share (GAAP) | $17.20 | $17.91 | $17.72 | $17.53 | $17.19 |
| (C)/(F) Tangible book value per common share (Non-GAAP) | $13.84 | $14.53 | $14.34 | $14.20 | $13.94 |
(a) Included in Total equity on the Consolidated Balance Sheet.
(b) Includes goodwill and other intangible assets, net of amortization.
| CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION | | | | | | |
| Quarterly, Unaudited | | | | | | |
| ($ in millions, except per share data) | | 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 |
| Adjusted Diluted EPS | | | | | | |
| Net income available to common shareholders ("NIAC") (GAAP) | a | $(94) | $260 | $257 | $257 | $254 |
| Plus Total notable items (after-tax) (Non-GAAP) (a) | | $347 | $1 | $ - | $2 | $9 |
| Adjusted net income available to common shareholders (Non-GAAP) | b | $253 | $262 | $257 | $259 | $263 |
| Diluted Shares (GAAP) | c | 474 | 480 | 487 | 496 | 510 |
| Adjusted Diluted Shares | d | 479 | 480 | 487 | 496 | 510 |
| Diluted EPS (GAAP) | a/c | $(0.20) | $0.54 | $0.53 | $0.52 | $0.50 |
| Adjusted diluted EPS (Non-GAAP) | b/d | $0.53 | $0.54 | $0.53 | $0.52 | $0.51 |
| Adjusted Net Income ("NI") and Adjusted Return on Assets ("ROA") | | | | | | |
| Net Income ("NI") (GAAP) | | $(79) | $274 | $266 | $266 | $266 |
| Plus Relevant notable items (after-tax) (Non-GAAP) (a) | | $347 | $4 | $ - | $2 | $6 |
| Adjusted NI (Non-GAAP) | | $268 | $278 | $266 | $268 | $272 |
| NI (annualized) (GAAP) | e | $(314) | $1,101 | $1,079 | $1,054 | $1,055 |
| Adjusted NI (annualized) (Non-GAAP) | f | $1,062 | $1,116 | $1,079 | $1,064 | $1,079 |
| Average assets (GAAP) | g | $84,671 | $84,097 | $83,045 | $83,081 | $82,049 |
| ROA (GAAP) | e/g | (0.37)% | 1.31% | 1.30% | 1.27% | 1.29% |
| Adjusted ROA (Non-GAAP) | f/g | 1.25% | 1.33% | 1.30% | 1.28% | 1.32% |
| Return on Average Common Equity ("ROCE")/ Return on Average Tangible Common Equity ("ROTCE")/ Adjusted ROTCE |
| Net income available to common shareholders ("NIAC") (annualized) (GAAP) | h | $(372) | $1,044 | $1,044 | $1,018 | $1,007 |
| Adjusted Net income available to common shareholders (annualized) (Non-GAAP) | i | $1,004 | $1,049 | $1,044 | $1,028 | $1,042 |
| Average Common Equity (GAAP) | j | $8,581 | $8,468 | $8,514 | $8,491 | $8,579 |
| Intangible Assets (GAAP) (b) | | 1,595 | 1,603 | 1,611 | 1,619 | 1,628 |
| Average Tangible Common Equity (Non-GAAP) | k | $6,987 | $6,865 | $6,903 | $6,872 | $6,950 |
| Equity Adjustment (Non-GAAP) | | 4 | - | - | - | - |
| Adjusted Average Tangible Common Equity (Non-GAAP) | l | $6,991 | $6,865 | $6,903 | $6,872 | $6,950 |
| ROCE (GAAP) | h/j | (4.34)% | 12.33% | 12.26% | 11.99% | 11.74% |
| ROTCE (Non-GAAP) | h/l | (5.33)% | 15.21% | 15.12% | 14.82% | 14.49% |
| Adjusted ROTCE (Non-GAAP) | i/l | 14.36% | 15.29% | 15.12% | 14.96% | 15.00% |
(a) Adjusted for those notable items relevant to the amount being adjusted, as detailed on page 7.
(b) Includes goodwill and other intangible assets, net of amortization.
See footnote disclosures on page 18.
| CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION | | | | | | |
| Quarterly, Unaudited | | | | | | |
| (In millions) | | 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 |
| Adjusted Noninterest Income as a % of Total Revenue | | | | | | |
| Noninterest income (GAAP) | m | $(276) | $211 | $195 | $212 | $215 |
| Plus notable items (pretax) (GAAP) (a) | | 473 | - | - | - | - |
| Adjusted noninterest income (Non-GAAP) | n | $197 | $211 | $195 | $212 | $215 |
| Revenue (GAAP) | o | $407 | $887 | $862 | $888 | $889 |
| Taxable-equivalent adjustment | | 3 | 3 | 3 | 3 | 3 |
| Revenue- Taxable-equivalent (Non-GAAP) | | 410 | 890 | 865 | 892 | 893 |
| Plus notable items (pretax) (GAAP) (a) | | 473 | - | - | - | - |
| Adjusted revenue (Non-GAAP) | p | $883 | $890 | $865 | $892 | $893 |
| Securities gains/(losses) (GAAP) | q | $(1) | $ - | $(1) | $ - | $ - |
| Noninterest income as a % of total revenue (GAAP) | (m-q)/(o-q) | (67.31)% | 23.73% | 22.63% | 23.89% | 24.16% |
| Adjusted noninterest income as a % of total revenue (Non-GAAP) | (n-q)/(p-q) | 22.38% | 23.65% | 22.55% | 23.80% | 24.07% |
| Adjusted Efficiency Ratio | | | | | | |
| Noninterest expense (GAAP) | r | $529 | $531 | $505 | $545 | $551 |
| Plus notable items (pretax) (GAAP) (a) | | (8) | (5) | - | (3) | (8) |
| Adjusted noninterest expense (Non-GAAP) | s | $521 | $526 | $505 | $541 | $542 |
| Revenue (GAAP) | t | $407 | $887 | $862 | $888 | $889 |
| Taxable-equivalent adjustment | | 3 | 3 | 3 | 3 | 3 |
| Revenue- Taxable-equivalent (Non-GAAP) | | 410 | 890 | 865 | 892 | 893 |
| Plus notable items (pretax) (GAAP) (a) | | 473 | - | - | - | - |
| Adjusted revenue (Non-GAAP) | u | $883 | $890 | $865 | $892 | $893 |
| Securities gains/(losses) (GAAP) | v | $(1) | $ - | $(1) | $ - | $ - |
| Efficiency ratio (GAAP) | r/ (t-v) | 129.56% | 59.88% | 58.54% | 61.33% | 61.92% |
| Adjusted efficiency ratio (Non-GAAP) | s/ (u-v) | 58.91% | 59.11% | 58.34% | 60.73% | 60.76% |
(a) Adjusted for those notable items relevant to the amount being adjusted, as detailed on page 7.
CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
($ in millions)
| Period-end | Average |
|---|
| 3Q26 | 2Q26 | 3Q26 vs. 2Q26 | 3Q26 | 2Q26 | 3Q26 vs. 2Q26 |
|---|
| Loans excluding LMC | | | | | | | | |
| Total Loans (GAAP) | $59,808 | $65,330 | $(5,522) | (8)% | $64,489 | $64,695 | | $(206) | - % |
| LMC (GAAP) | 3,869 | 4,759 | (891) | (19)% | 4,092 | 4,284 | | (192) | (4)% |
| Total Loans excl. LMC (Non-GAAP) | 55,940 | 60,571 | (4,631) | (8)% | 60,397 | 60,411 | | (14) | - % |
| Total Consumer (GAAP) | 9,807 | 14,439 | (4,632) | (32)% | 14,304 | | 14,439 | (136) | (1)% |
| Total Commercial excl. LMC (Non-GAAP) | 46,132 | 46,131 | 1 | - % | 46,093 | 45,972 | | 121 | - % |
| Total CRE (GAAP) | 13,692 | 13,595 | 97 | 1% | 13,655 | 13,510 | | 145 | 1% |
| Total C&I excl. LMC (Non-GAAP) | $32,440 | $32,536 | $(96) | - % | $32,438 | $32,462 | | (23) | - % |
| | 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 |
|---|
| 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 | $644 | $709 | $730 | $738 | $777 |
| Reserve for unfunded commitments (GAAP) | | 103 | 99 | 96 | 101 | 93 |
| Allowance for credit losses (Non-GAAP) | B | $747 | $808 | $826 | $839 | $870 |
| Loans and leases (GAAP) | C | $59,808 | $65,330 | $64,377 | $64,156 | $63,058 |
| Nonaccrual loans and leases (GAAP) | D | $482 | $531 | $606 | $604 | $605 |
| Allowance for loan and lease losses to loans and leases (GAAP) | A/C | 1.08% | 1.09% | 1.13% | 1.15% | 1.23% |
| Allowance for credit losses to loans and leases (Non-GAAP) | B/C | 1.25% | 1.24% | 1.28% | 1.31% | 1.38% |
| Allowance for loan and lease losses to nonperforming loans and leases (GAAP) | A/D | 134% | 133% | 120% | 122% | 128% |
| Allowance for credit losses to nonperforming loans and leases (Non-GAAP) | B/D | 155% | 152% | 136% | 139% | 144% |
| 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 |
|---|
| CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION | | |
| Quarterly, Unaudited | | |
| ($ in millions) | | |
| Adjusted Pre-provision Net Revenue (PPNR) | | | | | |
| Pre-tax income (GAAP) | $(97) | $341 | $342 | $343 | $344 |
| Plus notable items (pretax) (GAAP) (a) | 436 | 5 | - | 3 | 8 |
| Adjusted Pre-tax income (non-GAAP) | $339 | $346 | $342 | $347 | $352 |
| Plus adjusted provision for credit losses expense (non-GAAP) | 20 | 15 | 15 | - | (5) |
| Adjusted Pre-provision net revenue (PPNR) (non-GAAP) | $359 | $361 | $357 | $347 | $347 |
| Taxable-equivalent adjustment | 3 | 3 | 3 | 3 | 3 |
| Adjusted Pre-provision net revenue-Taxable-equivalent (Non-GAAP) | $362 | $364 | $360 | $350 | $351 |
| 3Q26 | 2Q26 | 1Q26 | 4Q25 | 3Q25 |
| Adjusted Provision for Credit Losses | | | | | |
| Provision for credit losses (GAAP) | $(25) | $15 | $15 | $ - | $(5) |
| Plus notable items (pretax) (GAAP) (a) | (45) | - | - | - | - |
| Adjusted provision for credit loss expense (non-GAAP) | $20 | $15 | $15 | $ - | $(5) |
(a) Adjusted for those notable items relevant to the amount being adjusted, as detailed on page 7.
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 corporate & specialty finance, 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.