First Horizon National Corporation

10/20/2021 | Press release | Distributed by Public on 10/20/2021 04:40

First Horizon Corporation Reports Third Quarter Net Income Available to Common Shareholders of $224 Million, or EPS of $0.41; $275 Million, or $0.50, on an Adjusted basis -[...]

First Horizon Corporation Reports Third Quarter Net Income Available to Common Shareholders of $224 Million,
or EPS of $0.41; $275 Million, or $0.50, on an Adjusted basis*

ROTCE of 15.0% and Adjusted ROTCE of 18.4% with tangible book value per share of $10.88*

MEMPHIS, TN (October 20, 2021) - First Horizon Corporation (NYSE: FHN or "First Horizon") today reported third quarter 2021 net income available to common shareholders ("NIAC") of $224 million, or earnings per share of $0.41, compared with second quarter 2021 NIAC of $295 million, or earnings per share of $0.53.

Third quarter 2021 results were reduced by a net $51 million after-tax, or $0.09per share, of notable items tied to the IBERIABANK Corporation Merger ("IBKC Merger") and early retirement of certain trust preferred securities compared with a net $26 million after-tax reduction, or $0.05 per share, in second quarter 2021. Excluding notable items, adjusted third quarter 2021 NIAC of $275 million, or $0.50 per share, decreased from $321 million, or $0.58 per share in second quarter. The decrease was led by a $0.04 per share reduction tied to lower provision credit.

"Our results this quarter reflect the emerging benefits of the power of the combined organization," said President and Chief Executive Officer Bryan Jordan. "Operating in high growth markets with an attractive base of specialty businesses positions us well to deliver more resilient results through a range of cycles. We delivered EPS of $0.50 and ROTCE of over 18% on an adjusted basis despite the challenging interest rate environment. Core net interest income was up 1% as we delivered loan growth of 1% before the impact of the PPP portfolio and continued to drive down our funding costs. Additionally as markets reopened during the quarter, we saw growth in more traditional banking fee income businesses including wealth and deposit products."

"We also continued to focus on reallocating capital and investments toward higher growth, higher return opportunities across the franchise, said Jordan. "I am inspired by our associates whose shared passion for building relationships and strengthening the communities we serve helps position us to deliver top-quartile returns in the future."

Notable Items
Notable Items
Quarterly, Unaudited ($s in millions, except per share data)
3Q21 2Q21 3Q20
Summary of Notable Items:
Merger/acquisition-related items:
Purchase accounting gain (other noninterest income)* $ - $ (2) $ 532
Branch sale gain (other noninterest income) 2 - -
Merger/acquisition expense (46) (32) (101)
Non-PCD provision expense - - (147)
Total Net Merger/acquisition- related items: (45) (34) 284
Other notable items:
Gain/(loss) on TruPS redemption (23) - -
Charitable contributions - - (15)
Total net other notable items: (23) - (15)
Total Notable items (pre-tax) $ (68) $ (34) $ 269
Total Notable items (after-tax) (51) (26) 331
EPS impact of notable items $ (0.09) $ (0.05) $ 0.60
Numbers may not foot due to rounding
*' Purchase accounting gain is non-taxable income
Third quarter 2021 GAAP results were reduced by a net $51 million after-tax impact, or $0.09 per share, of notable items compared with a net $26 million impact, or $0.05 per share, in second quarter 2021.
Third quarter net notable items were tied to:
•$45 million of net IBKC merger-related items.
•$23 million loss on retirement of legacy IBKC trust preferred securities included in other noninterest income.

*ROTCE, PPNR, Core net interest income (NII), tangible book value per share, loans and leases excluding PPP, and "Adjusted" results are Non-GAAP Financial Measures; NII, Total Revenue, NIM and PPNR are presented on a fully taxable equivalent basis; References to loans include leases and EPS are based on diluted shares; Capital ratios are preliminary. See page 6 for information on our use of Non-GAAP measures and their reconciliation to GAAP beginning on page 21.
1

Third Quarter 2021 Highlights*
•Total revenue of $738 million decreased $43 million from second quarter 2021 levels driven by a net $19 million decrease tied to notable items. Adjusted revenue of $763 million decreased $24 million largely reflecting expected reductions in other noninterest income, fixed income and mortgage banking fees.
•Net interest income of $492 million declined $5 million, or 1% from second quarter 2021 levels driven by a $9 million reduction in net merger-related and PPP loan portfolio benefits. Core net interest income increased 1% from 2% growth in commercial loans excluding PPP and lower deposit costs.
•Noninterest expense of $526 million increased $29 million from second quarter 2021 driven by a $14 million increase in notable items. Adjusted noninterest expense of $480 million increased $15 million from second quarter 2021 largely on strategic investments and costs tied to markets reopening.
•Provision for credit losses was a benefit of $85 million compared with a benefit of $115 million, largely reflecting further improvement in the macroeconomic outlook and positive loan portfolio credit grade migration.
•Average interest earning assets of $81.8 billion increased $791 million, or 1%, from second quarter 2021 largely as a $2.0 billion increase in excess cash was partially offset by a $1.3 billion decrease in average loans driven by a $1.8 billion decrease in PPP loans.
•Average loans before the impact of PPP increased $519 million, or 1%, as a $691 million increase in commercial was partially offset by a $172 million decrease in consumer.
•Average deposits of $73.7 billion increased $575 million, or 1%, from second quarter 2021 as a $1.1 billion increase in noninterest-bearing deposits was partially offset by a $506 million decrease in interest-bearing deposits. Interest-bearing deposit costs of 0.17% improved 3 basis points from second quarter 2021.
•Allowance for credit losses to loans ratio of 1.45% decreased from 1.57% at June 30, 2021; the allowance for loan losses to nonperforming loans ratio of 211% decreased from 237% at June 30, 2021.
•Net charge-offs of 0.02% in third quarter 2021 compared with net recoveries of 0.07% reflecting an unusual level of recoveries in second quarter 2021; nonperforming loans of $347 million increased 1% from $344 million and the nonperforming loan ratio of 0.63% increased from 0.61% as of June 30, 2021.
•Tangible book value per share of $10.88 at September 30, 2021 increased 1% from $10.74 at June 30, 2021 as net income was partially offset by the impact of capital return.
•ROCE of 11.4%; ROTCE of 15.0%; Adjusted ROTCE of 18.4%; CET 1 ratio of 10.1%; and total capital ratio of 12.6%.
•Returned $224 million of capital to common shareholders including share repurchases and dividends.
•Share repurchases of 9 million shares of common stock during the quarter with a weighted average price of $15.82.
Strategic Update
•Expect to fully integrate systems in February 2022 given Hurricane Ida impact.
•On track to deliver ~$200 million of targeted annualized net cost saves by 4Q22.
•Achieved $96 million of annualized net cost saves year-to-date.
•Committed to delivering additional efficiencies in 2022.
COVID-19 Update
•~$4 billion Paycheck Protection Program (PPP) loans forgiven year-to-date; Period-end PPP loan balance of $2 billion.
•Loans on deferral represented 0.3% of total loans excluding PPP as of September 30, 2021, down from June 30, 2021 levels of 0.7%.
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SUMMARY RESULTS
Quarterly, Unaudited
3Q21 Change vs.
($s in millions, except per share and balance sheet data) 3Q21 2Q21 3Q20 2Q21 3Q20
$/bp % $/bp %
Income Statement
Interest income - taxable equivalent1
$ 536 $ 545 $ 601 $ (9) (2) $ (65) (11)
Interest expense- taxable equivalent1
41 45 66 (4) (9) (25) (38)
Net interest income- taxable equivalent 495 500 535 (5) (1) (40) (7)
Less: Taxable-equivalent adjustment 3 3 3 - - - -
Net interest income 492 $ 497 $ 532 $ (5) (1) (40) (8)
Noninterest income 247 285 823 (38) (13) (576) (70)
Total revenue 738 781 1,355 (43) (6) (617) (46)
Noninterest expense 526 497 587 29 6 (61) (10)
Pre-provision net revenue4
213 284 768 (71) (25) (555) (72)
Provision for credit losses5
(85) (115) 227 30 26 (312) (137)
Income before income taxes 298 399 541 (101) (25) (243) (45)
Provision for income taxes 63 88 2 (25) (28) 61 NM
Net income 235 311 539 (76) (24) (304) (56)
Net income attributable to noncontrolling interest 3 3 3 - - - 1
Net income attributable to controlling interest 232 308 536 (76) (25) (304) (57)
Preferred stock dividends 8 13 13 (5) (38) (5) (37)
Net income available to common shareholders $ 224 $ 295 $ 523 $ (71) (24) $ (299) (57)
Adjusted net income5
$ 286 $ 337 $ 208 $ (51) (15) $ 78 38
Adjusted net income available to common shareholders5
$ 275 $ 321 $ 193 $ (46) (14) $ 82 42
Common stock information
EPS $ 0.41 $ 0.53 $ 0.95 $ (0.12) (23) $ (0.54) (57)
Adjusted EPS5
$ 0.50 $ 0.58 $ 0.35 $ (0.08) (14) $ 0.15 43
Diluted shares 550 556 551 (6) (1) (1) -
Key performance metrics
Net interest margin 2.40 % 2.47 % 2.84 % (7) bp (44) bp
Efficiency ratio 71.21 63.67 43.31 754 2,790
Adjusted efficiency ratio6
62.87 59.17 57.06 370 581
Effective income tax rate 21.13 22.03 0.41 (90) 2,072
Return on average assets 1.05 1.42 2.63 (37) (158)
Adjusted return on average assets6
1.28 1.54 1.01 (26) 27
Return on average common equity ("ROCE") 11.4 15.5 28.5 (402) (1,706)
Return on average tangible common equity ("ROTCE")6
15.0 20.4 37.8 (541) (2,280)
Adjusted ROTCE6
18.4 22.2 13.9 (382) 446
Noninterest income as a % of total revenue 33.39 36.43 60.72 (304) (2,733)
Adjusted noninterest income as a % of total revenue6
35.14 % 36.49 % 35.20 % (135) bp (6) bp
Balance Sheet (billions)
Average loans $ 55.5 $ 56.8 $ 60.1 $ (1.3) (2) $ (4.6) (8)
Average deposits 73.7 73.2 67.1 0.6 1 6.6 10
Average assets 88.4 87.6 81.7 0.8 1 6.7 8
Average common equity $ 7.8 $ 7.7 $ 7.3 $ 0.1 1 $ 0.5 6
Asset Quality Highlights
Allowance for credit losses to loans and leases 1.45 % 1.57 % 1.80 % (12) bp (36) bp
Net charge-off ratio 0.02 (0.07) 0.44 8 (42)
Nonperforming loan and leases ratio 0.63 % 0.61 % 0.75 % 2 bp (12) bp
Capital Ratio Highlights (current quarter is an estimate)
Common Equity Tier 1 10.1 % 10.3 % 9.2 % (20) bp 87 bp
Tier 1 11.2 11.4 10.3 (22) 97
Total Capital 12.6 13.1 12.1 (52) 57
Tier 1 leverage 8.1 % 8.2 % 8.3 % (10) bp (12) bp
Numbers may not foot due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 20.

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Third Quarter 2021 versus Second Quarter 2021
Net interest income
Net interest income of $492 million decreased $5 million from second quarter 2021 driven by a $9 million reduction in net merger-related and PPP benefits. Core net interest income of $454 million was up $4 million driven by the benefit of lower deposit costs, day count, commercial loan growth excluding PPP and higher investment portfolio income. Net interest margin of 2.40% decreased 7 basis points from second quarter 2021 largely as the impact of higher excess cash, tighter loan spreads and lower interest recoveries on nonperforming loans more than offset the benefit of lower deposit costs.

Noninterest income
Noninterest income of $247 million decreased $38 million driven by a net $19 million reduction tied to notable items. Adjusted noninterest income of $268 million decreased $19 million as growth in wealth and service charges and fees was more than offset by expected declines in other noninterest income, fixed income and mortgage banking and title fees. Fixed income average daily revenue decreased modestly to $1.3 million from $1.4 million in second quarter 2021.

Noninterest expense
Noninterest expense of $526 million increased $29 million from second quarter 2021 driven by a net $14 million increase in notable items. Adjusted noninterest expense of $480 million increased $15 million from second quarter 2021 levels as a $4 million reduction in personnel expense was more than offset by growth in outside services and other noninterest expense driven by strategic investments, costs tied to markets reopening, and tax-credit related contributions. Results reflect $1 million benefit tied to incremental merger cost savings.

Loans and leases
Average loan and lease balances of $55.5 billion decreased $1.3 billionfrom second quarter 2021 driven by a $1.8 billion decrease in PPP loans. Loan trends excluding PPP increased $519 million, or 1% compared to the prior quarter, and 4% annualized, reflects a $691 millionincrease in commercial partially offset by a $172 million decrease in consumer. Commercial loan growth excluding PPP reflects a $287 million increase in loans to mortgage companies (LMC), a $490 millionincrease in other commercial and industrial (C&I) and partially offset by an $86 million decrease in commercial real estate. Period-end loans and leases of $55.4 billion were down $1.3 billion from second quarter 2021 driven by a $1.8 billion decrease in PPP loans. Before the impact of PPP, period-end loans increased $572 million, or 4% annualized, reflecting a $713 million increase in commercial and partially offset by a $141 million decrease in consumer. Period-end commercial loan growth excluding PPP was driven by growth in other C&I and loans to mortgage companies.

Deposits
Average deposits of $73.7 billion increased $575 million, or 1% from second quarter 2021 as a $1.1 billion increase in noninterest-bearing deposits was partially offset by a $506 million reduction in interest-bearing deposits. Period-end deposits of $74.3 billion increased $984 million from second quarter 2021 as a $1.5 billion increase in noninterest-bearing was partially offset by a $531 million decrease in interest-bearing deposits. Interest-bearing deposit costs of 17 basis points declined 3 basis points from second quarter 2021 levelsreflecting continued discipline on deposit pricing.

Asset quality
Provision for credit losses benefit of $85 million compared to a benefit of $115 million in second quarter 2021, largely reflects improvement in the macroeconomic outlook and positive credit grade migration.

Net charge-offs of $3 million, or 2 basis points in 3Q21, compared to net recoveries of $10 million, or 7 basis points, in second quarter 2021 reflecting strong asset quality overall.

Nonperforming loans of $347 million increased $4 million from second quarter 2021 driven by an increase in the commercial, financial and industrial (C&I) portfolio. Third quarter 2021 allowance to nonperforming coverage ratio
4

of 211% compared with 237% in second quarter 2021. Third quarter 2021 nonperforming loans to loans ratio of 63 basis points compared with 61 basis points in second quarter 2021.

The allowance for credit losses to loans ratio decreased to 1.45% from 1.57% in second quarter 2021 largely reflecting continued improvement in the macroeconomic outlook and asset quality.

Capital
CET1 ratio of 10.1% in third quarter 2021 decreased from 10.3% in second quarter 2021. The reduction was tied to return of capital through share repurchases and dividends, and loan growth and higher unfunded commitments.
First Horizon returned $224 million in capital to common stockholders during the quarter including $142 million, or 9.0 million shares, of common stock repurchases.

Income taxes
The third quarter 2021 effective tax rate of 21.1% decreased from second quarter 2021 rate of 22.0%. On an adjusted basis, the effective tax rate of 21.8% in third quarter 2021 decreased from 22.2% in second quarter 2021.

Conference call information
Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on October 20 by dialing 1-888-317-6003 (if calling from the U.S.) or 412-317-6061 (if calling from outside the U.S) and entering access code 3626320. The conference call will begin at 8:30 a.m. CT.

Participants can also opt to listen to the live audio webcast with the accompanying slide presentation at http://ir.fhnc.com/Event.

A replay of the call will be available beginning at noon CT on October 20 until midnight CT on November 3. To listen to the replay, dial 1-877-344-7529 (U.S. callers) or 412-317-0088 (international callers); the access code is 10159826. A replay of the webcast will also be available at http://ir.fhnc.com/Event and will be archived on the site for one year.

Forward-Looking Statements
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 (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements pertain 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 can be identified by the words "believe," "expect," "anticipate," "intend," "estimate," "should," "is likely," "will," "going forward," and other 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. Examples of uncertainties and contingencies 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 filed 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 this year.

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.

5

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, core net interest income ("NII"), pre-provision net revenue ("PPNR"), loans and leases excluding paycheck protection program ('PPP"), 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, provide a meaningful base 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 21.

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CONSOLIDATED INCOME STATEMENT
Quarterly, Unaudited
3Q21 Change vs.
($s in millions, except per share data) 3Q21 2Q21 1Q21 4Q20 3Q20 2Q21 3Q20
$ % $ %
Interest income - taxable equivalent1
$ 536 $ 545 $ 555 $ 578 $ 601 $ (9) (2) % $ (65) (11) %
Interest expense- taxable equivalent1
41 45 45 53 66 (4) (9) (25) (38)
Net interest income- taxable equivalent 495 500 511 525 535 (5) (1) (40) (7)
Less: Taxable-equivalent adjustment 3 3 3 3 3 - - - -
Net interest income 492 497 508 522 532 (5) (1) (40) (8)
Noninterest income:
Fixed income 96 102 126 104 111 (6) (6) (15) (13)
Mortgage banking and title 34 38 53 57 66 (4) (11) (32) (48)
Brokerage, trust, and insurance 37 35 33 31 30 2 6 7 24
Service charges and fees 56 54 53 53 50 2 4 6 11
Card and digital banking fees 21 21 17 18 17 - - 4 27
Deferred compensation income 3 7 3 9 4 (4) (57) (1) (22)
Other noninterest income2
(1) 27 15 16 546 (28) (104) (547) (100)
Total noninterest income 247 285 298 288 823 (38) (13) (576) (70)
Total revenue 738 781 806 810 1,355 (43) (6) (617) (46)
Noninterest expense:
Personnel expense:
Salaries and benefits 191 191 196 200 201 - - (10) (5)
Incentives and commissions 101 109 120 110 126 (8) (7) (25) (20)
Deferred compensation expense 4 6 3 9 3 (2) (33) 1 27
Total personnel expense 296 306 318 319 329 (10) (3) (33) (10)
Occupancy and equipment3
75 75 76 76 77 - - (2) (2)
Outside services 89 63 58 59 78 26 41 11 15
Amortization of intangible assets 14 14 14 15 15 - - (1) (4)
Other noninterest expense 52 40 78 39 89 12 30 (37) (41)
Total noninterest expense 526 497 544 508 587 29 6 (61) (10)
Pre-provision net revenue4
213 284 262 302 768 (71) (25) (555) (72)
Provision for credit losses5
(85) (115) (45) 1 227 30 26 (312) (137)
Income before income taxes 298 399 307 301 541 (101) (25) (243) (45)
Provision for income taxes 63 88 71 56 2 (25) (28) 61 NM
Net income 235 311 235 245 539 (76) (24) (304) (56)
Net income attributable to noncontrolling interest 3 3 3 3 3 - - - 1
Net income attributable to controlling interest 232 308 233 242 536 (76) (25) (304) (57)
Preferred stock dividends 8 13 8 8 13 (5) (38) (5) (37)
Net income available to common shareholders $ 224 $ 295 $ 225 $ 234 $ 523 $ (71) (24) % $ (299) (57) %
Common Share Data
EPS $ 0.41 $ 0.54 $ 0.41 $ 0.42 $ 0.95 $ (0.13) (23) % $ (0.54) (57) %
Basic shares 546 550 552 553 550 (4) (1) (4) (1)
Diluted EPS $ 0.41 $ 0.53 $ 0.40 $ 0.42 $ 0.95 $ (0.12) (23) $ (0.54) (57)
Diluted shares 550 556 557 556 551 (6) (1) % (1) - %
Effective tax rate 21.1 % 22.0 % 23.2 % 18.7 % 0.4 %
Numbers may not foot due to rounding. See footnote disclosures on page 20.
7


ADJUSTED5 FINANCIAL DATA - SEE NOTABLE ITEMS ON PAGE 9
Quarterly, Unaudited
3Q21 Change vs.
($s in millions, except per share data) 3Q21 2Q21 1Q21 4Q20 3Q20 2Q21 3Q20
$ % $ %
Net interest income (FTE)1
$ 495 $ 500 $ 511 $ 525 $ 535 $ (5) (1) % $ (40) (7) %
Adjusted noninterest income:
Fixed income 96 102 126 104 111 (6) (6) (15) (13)
Mortgage banking and title 34 38 53 57 66 (4) (11) (32) (48)
Brokerage, trust, and insurance 37 35 33 31 30 2 6 7 23
Service charges and fees 56 54 53 53 50 2 4 6 12
Card and digital banking fees 21 21 17 18 17 - - 4 24
Deferred compensation income 3 7 3 9 4 (4) (57) (1) (22)
Adjusted other noninterest income 21 29 14 15 14 (8) (28) 7 50
Adjusted total noninterest income $ 268 $ 287 $ 297 $ 288 $ 291 $ (19) (7) % $ (23) (8) %
Total revenue (FTE)1
$ 763 $ 787 $ 808 $ 813 $ 826 $ (24) (3) % $ (63) (8) %
Adjusted noninterest expense:
Adjusted personnel expense:
Adjusted salaries and benefits $ 191 $ 191 $ 195 $ 200 $ 200 $ - - % $ (9) (5) %
Adjusted Incentives and commissions 92 93 99 89 91 (1) (1) % 1 1
Deferred compensation expense 4 6 3 9 3 (2) (33) % 1 33
Adjusted total personnel expense 286 290 297 298 294 (4) (1) % (8) (3)
Adjusted occupancy and equipment3
74 75 72 74 73 (1) (1) % 1 1
Adjusted outside services 65 56 54 52 46 9 16 % 19 41
Adjusted amortization of intangible assets 13 13 13 14 14 - - % (1) (7)
Adjusted other noninterest expense 42 31 28 35 45 11 35 % (3) (7)
Adjusted total noninterest expense $ 480 $ 465 $ 464 $ 474 $ 471 $ 15 3 % $ 9 2 %
Adjusted pre-provision net revenue4
$ 284 $ 321 $ 343 $ 339 $ 355 $ (37) (12) % $ (71) (20) %
Adjusted provision for credit losses5
$ (85) $ (115) $ (45) $ 1 $ 80 $ 30 26 % $ (165) NM
Adjusted net income available to common shareholders $ 275 $ 321 $ 284 $ 255 $ 193 $ (46) (14) % $ 82 42 %
Adjusted Common Share Data
Adjusted diluted EPS $ 0.50 $ 0.58 $ 0.51 $ 0.46 $ 0.35 $ (0.08) (14) % $ 0.15 43 %
Diluted shares 550 556 557 556 551 (6) (1) % (1) - %
Adjusted effective tax rate 21.8 % 22.2 % 23.4 % 20.7 % 23.3 %
Adjusted ROTCE 18.4 % 22.2 % 20.2 % 18.2 % 13.9 %
Adjusted efficiency ratio 62.9 % 59.2 % 57.5 % 58.3 % 57.1 %
Numbers may not foot due to rounding.
See footnote disclosures on page 20.

8


NOTABLE ITEMS
Quarterly, Unaudited
(In millions) 3Q21 2Q21 1Q21 4Q20 3Q20
Summary of Notable Items:
Purchase accounting gain (other noninterest income)* $ - $ (2) $ 1 $ 1 $ 532
Gain/(loss) on TRUPS redemption (other noninterest income) (23) - - - -
Branch sale gain (other noninterest income) 2 - - - -
Merger/acquisition expense** (46) (32) (70) (34) (101)
Charitable contributions - - - - (15)
Other notable expenses - - (10) - -
Merger/acquisition non-PCD provision expense - - - - (147)
Total notable items $ (68) $ (34) $ (79) $ (33) $ 269
EPS impact of notable items $ (0.09) $ (0.05) $ (0.11) $ (0.04) $ 0.60
Numbers may not foot due to rounding
*' Purchase accounting gain is non-taxable income.
** 3Q20 includes $20 million of charitable contributions to establish the First Horizon Louisiana Foundation.

IMPACT OF NOTABLE ITEMS:
Quarterly, Unaudited
(In millions) 3Q21 2Q21 1Q21 4Q20 3Q20
Impacts of Notable Items:
Noninterest income:
Other noninterest income $ 22 $ 2 $ (1) $ (1) $ (532)
Total noninterest income $ 22 $ 2 $ (1) $ (1) $ (532)
Noninterest expense:
Personnel expenses:
Salaries and benefits $ - $ - $ - $ - $ (1)
Incentives and commissions (10) (16) (21) (21) (34)
Deferred compensation expense - - - - -
Total personnel expenses (10) (16) (21) (21) (35)
Occupancy and equipment3
(1) - (4) (2) (4)
Outside services (24) (6) (4) (7) (32)
Amortization of intangible assets (1) (1) (1) (1) (1)
Other noninterest expense (10) (9) (50) (4) (44)
Total noninterest expense $ (46) $ (32) $ (80) $ (34) $ (116)
Provision for credit losses $ - $ - $ - $ - $ (147)
Income before income taxes $ 68 $ 34 $ 79 $ 33 $ (269)
Provision for income taxes 17 8 19 13 61
Net income/(loss) available to common shareholders $ 51 $ 26 $ 60 $ 20 $ (331)
Numbers may not foot due to rounding

9


FINANCIAL RATIOS
Quarterly, Unaudited
3Q21 change vs.
3Q21 2Q21 1Q21 4Q20 3Q20 2Q21 3Q20
FINANCIAL RATIOS $/bp % $/bp %
Net interest margin 2.40 % 2.47 % 2.63 % 2.71 % 2.84 % (7) bp (44) bp
Return on average assets 1.05 % 1.42 % 1.12 % 1.16 % 2.63 % (37) (158)
Adjusted return on average assets6
1.28 % 1.54 % 1.40 % 1.26 % 1.01 % (26) 27
Return on average common equity ("ROCE") 11.43 % 15.45 % 12.01 % 12.53 % 28.49 % (402) (1,706)
Return on average tangible common equity ("ROTCE")6
14.95 % 20.36 % 15.90 % 16.73 % 37.75 % (541) (2,280)
Adjusted ROTCE5
18.36 % 22.18 % 20.15 % 18.18 % 13.90 % (382) 446
Noninterest income as a % of total revenue 33.39 % 36.43 % 37.00 % 35.61 % 60.72 % (304) (2,733)
Adjusted noninterest income as a % of total revenue6
35.14 % 36.49 % 36.78 % 35.42 % 35.20 % (135) (6)
Efficiency ratio 71.21 % 63.67 % 67.53 % 62.71 % 43.31 % 754 2,790
Adjusted efficiency ratio6
62.87 % 59.17 % 57.49 % 58.34 % 57.06 % 370 581
CAPITAL DATA
CET1 capital ratio*
10.1 % 10.3 % 10.0 % 9.7 % 9.2 % (20) bp 87 bp
Tier 1 capital ratio* 11.2 % 11.4 % 11.0 % 10.7 % 10.3 % (22) bp 97 bp
Total capital ratio* 12.6 % 13.1 % 12.8 % 12.6 % 12.1 % (52) bp 57 bp
Tier 1 leverage ratio* 8.1 % 8.2 % 8.2 % 8.2 % 8.3 % (10) bp (12) bp
Risk-weighted assets ("RWA") (billions) $ 63.0 $ 62.0 $ 62.3 $ 63.1 $ 64.5 $ 1 2 % $ (1) (2) %
Total equity to total assets 9.64 % 9.74 % 9.49 % 9.86 % 9.81 % (10) bp (17) bp
Tangible common equity/tangible assets ("TCE/TA")6
6.80 % 6.87 % 6.64 % 6.89 % 6.78 % (7) bp 2 bp
Period-end shares outstanding (millions) 542 551 552 555 555 (9) (2) (13) (2) %
Cash dividends declared per common share $ 0.15 $ 0.15 $ 0.15 $ 0.15 $ 0.15 $ - - $ - -
Book value per common share $ 14.24 $ 14.07 $ 13.65 $ 13.59 $ 13.30 $ 0.17 1 $ 0.94 7 %
Tangible book value per common share6
$ 10.88 $ 10.74 $ 10.30 $ 10.23 $ 9.92 $ 0.14 1 % $ 0.96 10 %
SELECTED BALANCE SHEET DATA
Loans-to-deposit ratio (period-end balances) 74.65 % 77.36 % 80.09 % 83.21 % 87.28 % (271) bp (1,263) bp
Loans-to-deposit ratio (average balances) 75.28 % 77.68 % 82.02 % 85.90 % 89.59 % (240) bp (1,431) bp
Full-time equivalent associates 7,982 8,145 8,284 8,466 8,121 (163) (2) % (139) (2) %
Certain previously reported amounts have been reclassified to agree with current presentation
*Current quarter is an estimate.
See footnote disclosures on page 20.
10

CONSOLIDATED PERIOD-END BALANCE SHEET
Quarterly, Unaudited
3Q21 change vs.
(In millions) 3Q21 2Q21 1Q21 4Q20 3Q20 2Q21 3Q20
$ % $ %
Assets:
Loans and leases:
Commercial, financial, and industrial (C&I) $ 31,516 $ 32,528 $ 33,951 $ 33,103 $ 33,656 $ (1,012) (3) % $ (2,140) (6) %
Commercial real estate 12,194 12,292 12,470 12,275 12,511 (98) (1) (317) (3)
Total Commercial 43,710 44,820 46,421 45,379 46,167 (1,110) (2) (2,457) (5)
Consumer real estate 10,787 10,864 11,053 11,725 12,328 (77) (1) (1,541) (12)
Credit card and other7
938 1,002 1,126 1,128 1,212 (64) (6) (274) (23)
Total Consumer 11,725 11,867 12,178 12,853 13,540 (141) (1) (1,815) (13)
Loans and leases, net of unearned income 55,435 56,687 58,600 58,232 59,707 (1,251) (2) (4,271) (7)
Loans held for sale 1,052 977 811 1,022 1,051 74 8 1 -
Investment securities 8,798 8,398 8,361 8,057 8,006 401 5 792 10
Trading securities 1,319 1,035 1,076 1,176 1,386 284 27 (67) (5)
Interest-bearing deposits with banks 14,829 13,451 11,635 8,351 5,443 1,378 10 9,386 NM
Federal funds sold and securities purchased under agreements to resell 361 622 520 445 593 (261) (42) (233) (39)
Total interest earning assets 81,794 81,170 81,004 77,284 76,186 624 1 5,608 7
Cash and due from banks 1,197 1,303 1,169 1,203 1,075 (106) (8) 123 11
Goodwill and other intangible assets, net 1,822 1,836 1,850 1,864 1,876 (14) (1) (54) (3)
Premises and equipment, net 692 714 719 759 756 (22) (3) (64) (9)
Allowance for loan and lease losses (734) (815) (914) (963) (988) 81 10 254 26
Other assets 3,766 3,700 3,685 4,063 4,125 66 2 (359) (9)
Total assets $ 88,537 $ 87,908 $ 87,513 $ 84,209 $ 83,030 $ 629 1 % $ 5,508 7 %
Liabilities and Shareholders' Equity:
Deposits:
Savings $ 27,425 $ 27,416 $ 27,023 $ 27,324 $ 26,573 $ 10 - % $ 852 3 %
Time deposits 3,920 4,304 4,653 5,070 5,526 (383) (9) (1,606) (29)
Other interest-bearing deposits 15,571 15,728 16,444 15,415 14,925 (157) (1) 646 4
Total interest-bearing deposits 46,916 47,447 48,120 47,810 47,025 (531) (1) (108) -
Trading liabilities 315 531 454 353 477 (216) (41) (162) (34)
Short-term borrowings 2,225 2,246 2,203 2,198 2,142 (21) (1) 83 4
Term borrowings 1,584 1,672 1,671 1,670 2,162 (89) (5) (578) (27)
Total interest-bearing liabilities 51,040 51,896 52,448 52,030 51,805 (857) (2) (766) (1)
Noninterest-bearing deposits 27,348 25,833 25,046 22,173 21,384 1,515 6 5,964 28
Other liabilities 1,617 1,613 1,712 1,699 1,696 4 - (79) (5)
Total liabilities 80,005 79,343 79,206 75,903 74,885 662 1 5,119 7
Shareholders' Equity:
Preferred stock 520 520 470 470 470 - - 50 11
Common stock 339 344 345 347 347 (5) (2) (8) (2)
Capital surplus 4,866 4,997 5,036 5,073 5,061 (131) (3) (195) (4)
Retained earnings 2,754 2,613 2,402 2,261 2,111 141 5 643 30
Accumulated other comprehensive loss, net (241) (203) (242) (140) (140) (38) (19) (100) (71)
Combined shareholders' equity 8,237 8,270 8,012 8,012 7,849 (33) - 389 5
Noncontrolling interest 295 295 295 295 295 - - - -
Total shareholders' equity 8,533 8,566 8,307 8,307 8,144 (33) - 389 5
Total liabilities and shareholders' equity $ 88,537 $ 87,908 $ 87,513 $ 84,209 $ 83,030 $ 629 1 % $ 5,508 7 %
Memo:
Total Deposits $ 74,265 $ 73,281 $ 73,167 $ 69,982 $ 68,409 $ 984 1 % $ 5,856 9 %
Unfunded Loan Commitments:
Commercial $ 19,019 $ 18,035 $ 16,759 $ 17,201 $ 16,555 $ 984 5 % $ 2,464 15 %
Consumer $ 3,892 $ 4,031 $ 4,067 $ 4,086 $ 4,133 $ (139) (3) % $ (241) (6) %
Numbers may not foot due to rounding. See footnote disclosures on page 20.
11

CONSOLIDATED AVERAGE BALANCE SHEET
Quarterly, Unaudited
3Q21 change vs.
(In millions) 3Q21 2Q21 1Q21 4Q20 3Q20 2Q21 3Q20
$ % $ %
Assets:
Loans and leases:
Commercial, financial, and industrial (C&I) $ 31,477 $ 32,540 $ 33,279 $ 34,196 $ 34,051 $ (1,063) (3) % $ (2,574) (8) %
Commercial real estate 12,264 12,350 12,424 12,400 12,414 (86) (1) (150) (1)
Total Commercial 43,741 44,890 45,703 46,596 46,465 (1,149) (3) (2,724) (6)
Consumer real estate 10,819 10,926 11,400 12,030 12,444 (107) (1) (1,625) (13)
Credit card and other7
948 1,013 1,119 1,194 1,209 (65) (6) (261) (22)
Total Consumer 11,767 11,939 12,519 13,224 13,653 (172) (1) (1,886) (14)
Loans and leases, net of unearned income 55,508 56,829 58,222 59,820 60,118 (1,320) (2) (4,609) (8)
Loans held-for-sale 992 734 842 1,030 985 258 35 7 1
Investment securities 8,494 8,401 8,320 8,213 8,590 94 1 (96) (1)
Trading securities 1,171 1,322 1,418 1,292 1,194 (151) (11) (23) (2)
Interest-bearing deposits with banks 15,022 13,051 9,269 6,201 3,616 1,972 15 11,407 NM
Federal funds sold and securities purchased under agreements to resell 587 648 599 440 500 (61) (9) 88 18
Total interest earning assets 81,775 80,984 78,670 76,995 75,002 791 1 6,773 9
Cash and due from banks 1,263 1,267 1,250 1,204 1,028 (4) - 235 23
Goodwill and other intangibles assets, net 1,829 1,843 1,857 1,871 1,794 (14) (1) 36 2
Premises and equipment, net 703 714 755 765 747 (11) (2) (44) (6)
Allowances for loan and lease losses (793) (884) (949) (985) (980) 90 10 186 19
Other assets 3,624 3,635 3,817 3,959 4,093 (11) - (469) (11)
Total assets $ 88,401 $ 87,559 $ 85,401 $ 83,809 $ 81,683 $ 842 1 % $ 6,717 8 %
Liabilities and shareholders' equity:
Deposits:
Savings $ 27,793 $ 27,238 $ 27,370 $ 27,090 $ 25,648 $ 555 2 % $ 2,145 8 %
Time deposits 4,121 4,487 4,836 5,386 5,783 (366) (8) (1,661) (29)
Other interest-bearing deposits 15,333 16,029 15,491 15,057 14,771 (696) (4) 562 4
Total interest-bearing deposits 47,248 47,754 47,697 47,534 46,202 (506) (1) 1,046 2
Trading liabilities 527 560 518 367 360 (33) (6) 167 46
Short-term borrowings 2,452 2,248 2,280 2,113 2,469 205 9 (16) (1)
Term borrowings 1,665 1,672 1,670 1,913 2,172 (7) - (507) (23)
Total interest-bearing liabilities 51,892 52,233 52,164 51,926 51,202 (341) (1) 689 1
Noninterest-bearing deposits 26,485 25,404 23,284 22,105 20,904 1,082 4 5,582 27
Other liabilities 1,447 1,463 1,603 1,568 1,505 (17) (1) (58) (4)
Total liabilities 79,824 79,100 77,052 75,600 73,611 723 1 6,213 8
Shareholders' Equity:
Preferred stock 520 513 470 470 468 7 1 52 11
Common stock 342 345 346 347 345 (3) (1) (3) (1)
Capital surplus 4,936 5,023 5,061 5,902 5,041 (87) (2) (105) (2)
Retained earnings 2,673 2,499 2,336 1,346 2,025 174 7 648 32
Accumulated other comprehensive loss, net (190) (217) (161) (151) (103) 27 12 (87) (85)
Combined shareholders' equity 8,281 8,164 8,054 7,914 7,777 118 1 505 6
Noncontrolling interest 295 295 295 295 295 - - - -
Total shareholders' equity 8,577 8,459 8,349 8,209 8,072 118 1 505 6
Total liabilities and shareholders' equity $ 88,401 $ 87,559 $ 85,401 $ 83,809 $ 81,683 $ 842 1 % $ 6,717 8 %
Memo:
Total Deposits $ 73,733 $ 73,158 $ 70,981 $ 69,639 $ 67,106 $ 575 1 % $ 6,627 10 %
Numbers may not foot due to rounding. See footnote disclosures on page 20.
12

CONSOLIDATED NET INTEREST INCOME AND AVERAGE BALANCE SHEET: YIELDS AND RATES
Quarterly, Unaudited
3Q21 change vs.
3Q21 2Q21 1Q21 4Q20 3Q20 2Q21 3Q20
(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 $ 372 3.37 % $ 380 3.39 $ 382 3.39 $ 406 3.46 $ 419 3.59 $ (7) (2) % $ (46) (11) %
Consumer 112 3.81 118 3.99 127 4.13 129 3.89 141 4.11 (7) (6) (29) (21)
Loans and leases, net of unearned income 484 3.46 498 3.52 510 3.55 535 3.56 560 3.70 (14) (3) (75) (13)
Loans held-for-sale 8 3.25 7 3.94 7 3.16 8 3.22 8 3.36 1 11 - 1
Investment securities 31 1.48 29 1.39 28 1.41 27 1.29 25 1.21 2 8 6 24
Trading securities 6 2.07 7 2.03 7 2.03 7 2.05 6 2.08 (1) (10) - 1
Interest-bearing deposits with banks 6 0.16 3 0.10 2 0.10 2 0.10 1 0.09 3 90 5 NM
Federal funds sold and securities purchased under agreements - (0.03) - (0.06) - (0.12) - 0.03 - 0.04 - 48 - NM
Interest income $ 536 2.60 $ 545 2.70 $ 555 2.86 $ 578 2.99 $ 601 3.19 $ (9) (2) % $ (65) (11) %
Interest bearing liabilities/Interest expense:
Interest-bearing deposits:
Savings $ 9 0.12 $ 11 0.16 $ 13 0.19 $ 18 0.27 $ 25 0.38 $ (2) (20) % $ (16) (66) %
Time deposits 6 0.62 7 0.65 6 0.47 6 0.44 10 0.70 (1) (11) (4) (35)
Other interest-bearing deposits 5 0.12 6 0.15 6 0.16 7 0.18 7 0.20 (1) (20) (2) (33)
Total interest-bearing deposits 20 0.17 24 0.20 24 0.20 31 0.26 42 0.36 (4) (17) (22) (53)
Trading liabilities 1 1.11 2 1.17 1 0.73 1 0.78 1 0.77 - (10) 1 111
Short-term borrowings 1 0.24 1 0.22 1 0.21 1 0.23 1 0.20 - 19 - 48
Term borrowings 18 4.39 18 4.38 18 4.39 20 4.16 22 3.98 - - (4) (17)
Interest expense 41 0.31 45 0.34 45 0.34 53 0.40 66 0.51 (4) (9) (25) (38)
Net interest income - tax equivalent basis 495 2.29 500 2.36 511 2.52 525 2.59 535 2.68 (5) (1) (40) (8)
Fully taxable equivalent adjustment (3) 0.11 (3) 0.11 (3) 0.11 (3) 0.12 (3) 0.16 - 3 - 2
Net interest income $ 492 2.40 $ 497 2.47 $ 508 2.63 $ 522 2.71 $ 532 2.84 $ (5) (1) % $ (40) (8) %
Memo:
Total loan yield 3.46 % 3.52 % 3.55 % 3.56 % 3.70 %
Total deposit cost 0.11 % 0.13 % 0.14 % 0.18 % 0.25 %
Total funding cost 0.21 % 0.23 % 0.24 % 0.28 % 0.36 %
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.
Numbers may not foot due to rounding.
See footnote disclosures on page 20.
13

CONSOLIDATED NONPERFORMING LOANS AND LEASES ("NPL")
Quarterly, Unaudited
As of 3Q21 change vs.
(In millions, except ratio data) 3Q21 2Q21 1Q21 4Q20 3Q20 2Q21 3Q20
$ % $ %
Nonperforming loans and leases
Commercial, financial, and industrial (C&I) $ 144 $ 122 $ 144 $ 144 $ 213 $ 21 17 % $ (69) (32) %
Commercial real estate 58 70 67 58 51 (12) (17) 7 14
Consumer real estate 143 149 180 182 180 (6) (4) (37) (21)
Credit card and other 2 2 2 2 3 - (13) (1) (28)
Total nonperforming loans and leases $ 347 $ 344 $ 394 $ 386 $ 447 $ 4 1 % $ (100) (22) %
Asset Quality Ratio
Nonperforming loans and leases to loans and leases
Commercial, financial, and industrial (C&I) 0.46 % 0.38 % 0.42 % 0.43 % 0.63 %
Commercial real estate 0.48 0.57 0.54 0.48 0.41
Consumer real estate 1.33 1.37 1.63 1.56 1.46
Credit card and other 0.22 0.24 0.22 0.18 0.24
Total nonperforming loans and leases to loans and leases 0.63 % 0.61 % 0.67 % 0.66 % 0.75 %
Numbers may not foot due to rounding.

CONSOLIDATED LOANS AND LEASES 90 DAYS OR MORE PAST DUE AND ACCRUING
Quarterly, Unaudited
As of 3Q21 change vs.
(In millions) 3Q21 2Q21 1Q21 4Q20 3Q20 2Q21 3Q20
$ % $ %
Loans and leases 90 days or more past due and accruing
Commercial, financial, and industrial (C&I) $ 1 $ 1 $ - $ - $ - $ - (16) % $ 1 NM
Commercial real estate 2 - - - - 2 NM 2 NM
Consumer real estate 12 12 12 15 14 - 2 (2) (12)
Credit card and other 2 1 - 1 1 1 53 1 77
Total loans and leases 90 days or more past due and accruing $ 16 $ 14 $ 13 $ 16 $ 15 $ 2 15 % $ 2 11 %
Numbers may not foot due to rounding.
14


CONSOLIDATED NET CHARGE-OFFS (RECOVERIES)
Quarterly, Unaudited
As of 3Q21 change vs.
(In millions, except ratio data) 3Q21 2Q21 1Q21 4Q20 3Q20 2Q21 3Q20
Charge-off, Recoveries and Related Ratios $ % $ %
Gross Charge-offs
Commercial, financial, and industrial (C&I) $ 12 $ 2 $ 15 $ 35 $ 69 $ 10 NM $ (58) (83) %
Commercial real estate 2 - 3 - 4 2 NM (1) (32)
Consumer real estate 1 1 1 1 2 - 6 (1) (60)
Credit card and other 5 3 3 4 4 1 42 1 29
Total gross charge-offs $ 19 $ 6 $ 23 $ 40 $ 78 $ 13 NM $ (59) (75) %
Gross Recoveries
Commercial, financial, and industrial (C&I) $ (7) $ (5) $ (6) $ (4) $ (3) $ (2) (43) % $ (4) (109) %
Commercial real estate (2) (1) (2) (1) (2) (1) NM - 7
Consumer real estate (7) (8) (6) (5) (5) 1 11 (2) (39)
Credit card and other - (2) (1) (1) (1) 2 94 1 89
Total gross recoveries $ (16) $ (16) $ (15) $ (12) $ (12) $ (1) (5) % $ (5) (39) %
Net Charge-offs (Recoveries)
Commercial, financial, and industrial (C&I) $ 5 $ (3) $ 10 $ 31 $ 66 $ 8 NM $ (61) (93) %
Commercial real estate - (1) 2 (1) 1 1 NM (1) (74)
Consumer real estate (7) (8) (5) (4) (3) 1 13 (3) (91)
Credit card and other 4 1 2 2 3 3 NM 2 76
Total net charge-offs $ 3 $ (10) $ 8 $ 29 $ 67 $ 13 130 % $ (64) (96) %
Annualized Net Charge-off (Recovery) Rates
Commercial, financial, and industrial (C&I) 0.06 % (0.04) % 0.12 % 0.36 % 0.77 %
Commercial real estate 0.01 (0.02) 0.06 (0.02) 0.04
Consumer real estate (0.24) (0.28) (0.18) (0.12) (0.11)
Credit card and other 1.86 0.51 0.65 0.68 0.83
Total loans and leases 0.02 % (0.07) % 0.06 % 0.19 % 0.44 %
Numbers may not foot due to rounding.
15


CONSOLIDATED ALLOWANCE FOR LOAN AND LEASE LOSSES AND RESERVE FOR UNFUNDED COMMITMENTS
Quarterly, Unaudited
As of 3Q21 Change vs.
(In millions) 3Q21 2Q21 1Q21 4Q20 3Q20 2Q21 3Q20
Summary of Changes in the Components of the Allowance For Credit Losses $ % $ %
Allowance for loan and lease losses - beginning $ 815 $ 914 $ 963 $ 988 $ 538 $ (99) (11) % $ 277 52 %
Acquired purchased credit deteriorated allowance for loan and lease losses:
Commercial, financial, and industrial (C&I) - - - - 138 - NM $ (138) (100)
Commercial real estate - - - - 100 - NM (100) (100)
Consumer real estate - - - - 44 - NM (44) (100)
Credit card and other - - - - 5 - NM (5) (100)
Total acquired purchased credit deteriorated allowance for loan and lease losses - - - - 287 - NM (287) (100)
Charge-offs:
Commercial, financial, and industrial (C&I) (12) (2) (15) (35) (69) (10) NM 58 83
Commercial real estate (2) - (3) - (4) (2) NM 1 32
Consumer real estate (1) (1) (1) (1) (2) - (6) 1 60
Credit card and other (5) (3) (3) (4) (4) (1) (42) (1) (29)
Total charge-offs (19) (6) (23) (40) (78) (13) NM 59 75
Recoveries:
Commercial, financial, and industrial (C&I) 7 5 6 4 3 2 43 4 109
Commercial real estate 2 1 2 1 2 1 NM - (7)
Consumer real estate 7 8 6 5 5 (1) (11) 2 39
Credit card and other - 2 1 1 1 (2) (94) (1) (89)
Total Recoveries 16 16 15 12 12 1 5 5 39
Provision for loan and lease losses:
Commercial, financial, and industrial (C&I)* (5) (60) (1) (5) 99 55 91 (104) (105)
Commercial real estate* (48) (22) (8) 34 52 (26) (114) (100) NM
Consumer real estate* (31) (26) (26) (27) 74 (5) (17) (105) (142)
Credit card and other* 6 - (6) 3 5 6 NM 1 23
Total provision for loan and lease losses*:
(78) (109) (41) 4 230 31 28 (308) (134)
Allowance for loan and lease losses - ending $ 734 $ 815 $ 914 $ 963 $ 988 $ (81) (10) % $ (254) (26) %
Reserve for unfunded commitments - beginning $ 75 $ 81 $ 85 $ 89 $ 50 $ (6) (7) % $ 24 48 %
Cumulative effect of change in accounting principle - - - - - - NM - NM
Acquired reserve for unfunded commitments - - - (1) 41 - NM (41) (100)
Provision for unfunded commitments (7) (6) (4) (3) (3) (1) (17) (4) (133)
Reserve for unfunded commitments - ending $ 68 $ 75 $ 81 $ 85 $ 89 $ (7) (9) $ (21) (24)
Total allowance for credit losses- ending $ 802 $ 890 $ 995 $ 1,048 $ 1,077 $ (88) (10) % $ (275) (26) %
Numbers may not foot due to rounding. * 3Q20 includes $30 million, $44 million, $70 million, and $3 million recognized within the C&I, Commercial real estate, Consumer real estate, and Credit card and other loan and leases portfolios, respectively, of provision expense associated with the recognition of Non-PCD provision related to mergers/acquisitions.
16


CONSOLIDATED ASSET QUALITY RATIOS - ALLOWANCE FOR LOAN AND LEASE LOSSES
Quarterly, Unaudited
As of
3Q21 2Q21 1Q21 4Q20 3Q20
Allowance for loans and lease losses to loans and leases
Commercial, financial, and industrial (C&I) 1.19 % 1.18 % 1.30 % 1.37 % 1.45 %
Commercial real estate 1.33 % 1.71 % 1.86 % 1.97 % 1.66 %
Consumer real estate 1.65 % 1.87 % 2.00 % 2.07 % 2.15 %
Credit card and other 2.03 % 1.71 % 1.63 % 2.34 % 2.11 %
Total allowance for loans and lease losses to loans and leases 1.32 % 1.44 % 1.56 % 1.65 % 1.65 %
Allowance for loans and lease losses to nonperforming loans and leases
Commercial, financial, and industrial (C&I) 261 % 314 % 307 % 315 % 230 %
Commercial real estate 278 % 300 % 345 % 415 % 407 %
Consumer real estate 125 % 136 % 123 % 133 % 147 %
Credit card and other 926 % 725 % 749 % 1,313 % 890 %
Total allowance for loans and lease losses to nonperforming loans and leases 211 % 237 % 232 % 249 % 221 %
17

REGIONAL BANKING
Quarterly, Unaudited
3Q21 Change vs.
3Q21 2Q21 1Q21 4Q20 3Q20 2Q21 3Q20
$/bp % $/bp %
Income Statement (millions)
Net interest income $ 444 $ 444 $ 426 $ 430 $ 448 $ - - % $ (4) (1) %
Noninterest income 112 108 99 105 97 4 4 15 15 %
Total revenue 556 552 525 535 545 4 1 11 2 %
Noninterest expense 301 278 272 306 301 23 8 - - %
Pre-provision net revenue4
255 274 254 229 245 (19) (7) 10 4 %
Provision for credit losses5
(52) (89) (32) (2) 194 37 42 (246) (127) %
Income before income tax expense 301 362 286 231 50 (61) (17) 251 NM
Income tax expense 72 85 66 53 9 (13) (15) 63 NM
Net income $ 236 $ 277 $ 219 $ 178 $ 41 $ (41) (15) % $ 195 NM
Average Balances (billions)
Total loans and leases $ 38.4 $ 39.9 $ 40.1 $ 40.6 $ 41.6 $ (1.5) (4) % $ (3.2) (8) %
Interest-earning assets 38.4 40.0 40.1 40.6 41.5 (1.6) (4) (3.1) (7)
Total assets 40.7 42.2 42.4 43.0 43.7 (1.5) (4) (3.0) (7)
Total deposits 65.4 64.9 62.1 60.8 59.3 0.5 1 6.1 10
Key Metrics
Net interest margin8
4.61 % 4.48 % 4.34 % 4.24 % 4.32 % 13 bp 29 bp
Efficiency ratio 54.11 % 50.44 % 51.69 % 57.24 % 55.11 % 367 bp (100) bp
Loans-to-deposits ratio (period-end balances) 57.26 % 59.85 % 62.45 % 65.29 % 68.07 % (259) bp (1,081) bp
Loans-to-deposits ratio (average-end balances) 58.79 % 61.51 % 64.52 % 66.84 % 70.05 % (272) bp (1,126) bp
Return on average assets (annualized) 2.30 % 2.64 % 2.10 % 1.65 % 0.37 % (34) bp 193 bp
Return on allocated equity9
25.75 % 30.43 % 24.02 % 17.98 % 4.38 % (468) bp 2,137 bp
Financial center locations 438 490 490 492 493 (52) (11) % (55) (11) %
Numbers may not add to total due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 20.

Regional Banking segment: Offers financial products and services, including traditional lending and deposit taking, to consumer and commercial customers primarily in the southern and southeastern U.S. and other selected markets. Regional Banking also provides investment, wealth management, financial planning, trust and asset management services for consumer customers.
18


SPECIALTY BANKING
Quarterly, Unaudited
3Q21 Change vs.
3Q21 2Q21 1Q21 4Q20 3Q20 2Q21 3Q20
$/bp % $/bp %
Income Statement (millions)
Net interest income $ 154 $ 153 $ 158 $ 173 $ 161 $ 1 1 % $ (7) (4) %
Noninterest income 141 150 185 167 181 (9) (6) (40) (22)
Total revenue 295 302 343 339 342 (7) (2) (47) (14)
Noninterest expense 141 146 154 135 138 (5) (3) 3 2
Pre-provision net revenue4
154 156 189 205 204 (2) (1) (50) (25)
Provision for credit losses5
(33) (21) (7) 11 34 (12) (57) (67) NM
Income before income tax expense 187 177 196 194 170 10 6 17 10
Income tax expense 45 43 47 47 41 2 5 4 10
Net income $ 142 $ 134 $ 149 $ 147 $ 129 $ 8 6 % $ 13 10 %
Average Balances (billions)
Total loans and leases $ 16.3 $ 16.0 $ 17.2 $ 18.2 $ 17.6 $ 0.3 2 % $ (1.2) (7) %
Interest-earning assets 19.2 18.8 20.2 21.1 20.3 0.4 2 (1.1) (5)
Total assets 20.5 20.1 21.5 22.5 21.7 0.4 2 (1.2) (6)
Total deposits 6.2 5.5 5.3 4.9 4.4 0.7 12 1.8 40
Key Metrics
Fixed income product average daily revenue (thousands) $ 1,323 $ 1,425 $ 1,885 $ 1,505 $ 1,545 $ (102) (7) % $ (222) (14) %
Net interest margin8
3.18 % 3.26 % 3.18 % 3.26 % 3.16 % (8) bp 2 bp
Efficiency ratio 47.71 % 48.32 % 44.90 % 39.72 % 40.37 % (61) bp 734 bp
Loans-to-deposits ratio (period-end balances) 274 % 308 % 318 % 371 % 405 % (3,343) bp (13,078) bp
Loans-to-deposits ratio (average-end balances) 266 % 293 % 325 % 375 % 399 % (2,710) bp (13,340) bp
Return on average assets (annualized) 2.75 % 2.68 % 2.80 % 2.60 % 2.36 % 7 bp 39 bp
Return on allocated equity9
34.14 % 31.87 % 33.67 % 32.30 % 29.66 % 227 bp 448 bp
Numbers may not add to total due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 20.

Specialty Banking segment: Consists of lines of business that deliver product offerings and services with specialized industry knowledge. Specialty Banking's lines of business include asset-based lending, mortgage warehouse lending, commercial real estate, franchise finance, correspondent banking, equipment finance, mortgage, and title insurance. In addition to traditional lending and deposit taking, Specialty Banking also delivers treasury management solutions, loan syndications, international banking and SBA lending. Additionally, Specialty Banking 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.
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CORPORATE
Quarterly, Unaudited
3Q21 Change vs.
3Q21 2Q21 1Q21 4Q20 3Q20 2Q21 3Q20
$ % $ %
Income Statement (millions)
Net interest income/(expense) $ (106) $ (100) $ (77) $ (81) $ (77) $ (6) (6) % $ (29) (38) %
Noninterest income2
(7) 27 13 17 545 (34) (126) (552) (101)
Total revenues (113) (73) (63) (64) 468 (40) (55) (581) (124)
Noninterest expense 84 73 118 67 148 11 15 (64) (43)
Pre-provision net revenue4
(197) (146) (181) (131) 319 (51) (35) (516) NM
Provision for credit losses5
- (6) (6) (7) (1) 6 100 1 100
Income before income tax expense (197) (140) (175) (124) 321 (57) (41) (518) NM
Income tax expense (benefit) (54) (40) (42) (44) (48) (14) (35) (6) (13)
Net income/(loss) $ (143) $ (101) $ (133) $ (80) $ 369 $ (42) (42) % $ (512) (139) %
Average Balance Sheet (billions)
Interest bearing assets $ 24.2 $ 22.2 $ 18.4 $ 15.3 $ 13.2 $ 1.9 9 % $ 10.9 83 %
Total assets 27.2 25.3 21.5 18.3 16.3 1.9 8 10.9 67 %
Numbers may not add to total due to rounding.
Certain previously reported amounts have been reclassified to agree with current presentation.
See footnote disclosures on page 20.

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, properties, technology, credit risk and bank operations are allocated to the activities of Regional Banking, Specialty Banking, and Corporate. Additionally, the Corporate segment includes centralized management of capital and funding to support the business activities of the company including management of wholesale funding, liquidity, and capital management and allocation. Finally, the Corporate segment 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
1 Taxable equivalent interest income and interest expense are non-GAAP measures and reconcile to net interest income (GAAP) in the table.
2 3Q20 includes a $532 million purchase accounting gain from FHN's merger with IBERIABANK.
3 Occupancy and Equipment expense includes Computer Software Expense.
4 Pre-provision net revenue is a non-GAAP measure and is reconciled to income before income taxes (GAAP) in the table.
5 Beginning in 3Q20 FHN began recording credit expense on unfunded commitments as a component of provision for credit losses. Prior period amounts have been reclassified from other noninterest expense.
6 Represents a non-GAAP measure and is reconciled to the nearest GAAP measure in the non-GAAP to GAAP reconciliations beginning on page 21.
7 Credit card and other includes an insignificant amount of commercial credit card balances.
8 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.
9 Segment equity is allocated based on an internal allocation methodology.

20

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
($s in millions, except per share data) 3Q21 2Q21 1Q21 4Q20 3Q20
Tangible Common Equity (Non-GAAP)
(A) Total equity (GAAP) $ 8,533 $ 8,566 $ 8,307 $ 8,307 $ 8,144
Less: Noncontrolling interest (a) 295 295 295 295 295
Less: Preferred stock (a) 520 520 470 470 470
(B) Total common equity $ 7,717 $ 7,750 $ 7,541 $ 7,541 $ 7,378
Less: Intangible assets (GAAP) (b) 1,822 1,836 1,850 1,864 1,876
(C) Tangible common equity (Non-GAAP) $ 5,895 $ 5,914 $ 5,691 $ 5,677 $ 5,502
Tangible Assets (Non-GAAP)
(D) Total assets (GAAP) $ 88,537 $ 87,908 $ 87,513 $ 84,209 $ 83,030
Less: Intangible assets (GAAP) (b) 1,822 1,836 1,850 1,864 1,876
(E) Tangible assets (Non-GAAP) $ 86,715 $ 86,072 $ 85,663 $ 82,345 $ 81,154
Period-end Shares Outstanding
(F) Period-end shares outstanding 542 551 552 555 555
Ratios
(A)/(D) Total equity to total assets (GAAP) 9.64 % 9.74 % 9.49 % 9.86 % 9.81 %
(C)/(E) Tangible common equity to tangible assets ("TCE/TA") (Non-GAAP) 6.80 % 6.87 % 6.64 % 6.89 % 6.78 %
(B)/(F) Book value per common share (GAAP) $ 14.24 $ 14.07 $ 13.65 $ 13.59 $ 13.30
(C)/(F) Tangible book value per common share (Non-GAAP) $ 10.88 $ 10.74 $ 10.30 $ 10.23 $ 9.92
(a) Included in Total equity on the Consolidated Balance Sheet.
(b) Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.

21

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
3Q21 2Q21 1Q21 4Q20 3Q20
($s in millions, except per share data) GAAP Notable Items Non-GAAP GAAP Notable Items Non-GAAP GAAP Notable Items Non-GAAP GAAP Notable Items Non-GAAP GAAP Notable Items Non-GAAP
Interest income - FTE $ 533 $ 3 $ 536 $ 542 $ 3 $ 545 $ 552 $ 3 $ 555 $ 574 $ 3 $ 578 $ 598 $ 3 $ 601
Interest expense- FTE 41 - 41 45 - 45 45 - 45 53 - 53 66 - 66
Net interest income- FTE 492 3 495 497 3 500 508 3 511 522 3 525 532 3 535
Less: Taxable-equivalent adjustment - 3 3 - 3 3 - 3 3 - 3 3 - 3 3
Net interest income 492 - 492 497 - 497 508 - 508 522 - 522 532 - 532
Noninterest income:
Fixed income 96 - 96 102 - 102 126 - 126 104 - 104 111 - 111
Mortgage banking and title 34 - 34 38 - 38 53 - 53 57 - 57 66 - 66
Brokerage, trust, and insurance 37 - 37 35 - 35 33 - 33 31 - 31 30 - 30
Service charges and fees 56 - 56 54 - 54 53 - 53 53 - 53 50 - 50
Card and digital banking fees 21 - 21 21 - 21 17 - 17 18 - 18 17 - 17
Deferred compensation income 3 - 3 7 - 7 3 - 3 9 - 9 4 - 4
Other noninterest income (1) 22 21 27 2 29 15 (1) 14 16 (1) 15 546 (532) 14
Total noninterest income 247 22 268 285 2 287 298 (1) 297 288 (1) 288 823 (532) 291
Total revenue 738 22 760 781 2 784 806 (1) 805 810 (1) 810 1,355 (532) 823
Noninterest expense:
Personnel expense:
Salaries and benefits 191 - 191 191 - 191 196 - 195 200 - 200 201 (1) 200
Incentives and commissions 101 (10) 92 109 (16) 93 120 (21) 99 110 (21) 89 126 (34) 91
Deferred compensation expense 4 - 4 6 - 6 3 - 3 9 - 9 3 - 3
Total personnel expense 296 (10) 286 306 (16) 290 318 (21) 297 319 (21) 298 329 (35) 294
Occupancy and equipment 75 (1) 74 75 - 75 76 (4) 72 76 (2) 74 77 (4) 73
Outside services 89 (24) 65 63 (6) 56 58 (4) 54 59 (7) 52 78 (32) 46
Amortization of intangible assets 14 (1) 13 14 (1) 13 14 (1) 13 15 (1) 14 15 (1) 14
Other noninterest expense 52 (10) 42 40 (9) 31 78 (50) 28 39 (4) 35 89 (44) 45
Total noninterest expense 526 (46) 480 497 (32) 465 544 (80) 464 508 (34) 474 587 (116) 471
Pre-provision net revenue 213 68 281 284 34 318 262 79 340 302 33 335 768 (416) 352
Provision for credit losses (85) - (85) (115) - (115) (45) - (45) 1 - 1 227 (147) 80
Income before income taxes 298 68 365 399 34 433 307 79 386 301 33 334 541 (269) 272
Provision for income taxes 63 17 80 88 8 96 71 19 90 56 13 69 2 61 63
Net income 235 51 286 311 26 337 235 60 295 245 20 265 539 (331) 208
Net income attributable to noncontrolling interest 3 - 3 3 - 3 3 - 3 3 - 3 3 - 3
Net income attributable to controlling interest 232 51 283 308 26 334 233 60 292 242 20 262 536 (331) 205
Preferred stock dividends 8 - 8 13 - 13 8 - 8 8 - 8 13 - 13
Net income available to common shareholders $ 224 $ 51 $ 275 $ 295 $ 26 $ 321 $ 225 $ 60 $ 284 $ 234 $ 20 $ 255 $ 523 $ (331) $ 193
Common Stock Data
EPS $ 0.41 $ (0.09) $ 0.50 $ 0.54 $ (0.05) $ 0.58 $ 0.41 $ (0.11) $ 0.51 $ 0.42 $ (0.04) $ 0.46 $ 0.95 $ 0.60 $ 0.35
Basic shares 546 546 550 550 552 552 553 553 550 550
Diluted EPS $ 0.41 $ (0.09) $ 0.50 $ 0.53 $ (0.05) $ 0.58 $ 0.40 $ (0.11) $ 0.51 $ 0.42 $ (0.04) $ 0.46 $ 0.95 $ 0.60 $ 0.35
Diluted shares 550 550 556 556 557 557 556 556 551 551
Memo:
Total Revenue-FTE (Non-GAAP) $ 738 $ 24 $ 763 $ 781 $ 5 $ 787 $ 806 $ 2 $ 808 $ 810 $ 2 $ 813 $ 1,355 $ (529) $ 826
PPNR-FTE (Non-GAAP) $ 213 $ 71 $ 283 $ 284 $ 37 $ 321 $ 262 $ 82 $ 343 $ 302 $ 36 $ 339 $ 768 $ (414) $ 355
Amounts adjusted for notable items as detailed on page 9.
Numbers may not foot due to rounding.
22

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
($s in millions, except per share data) 3Q21 2Q21 1Q21 4Q20 3Q20
Adjusted Diluted EPS
Net income available to common shareholders ("NIAC") (GAAP) a $ 224 $ 295 $ 225 $ 234 $ 523
Plus Tax effected notable items (Non-GAAP) (a) 51 26 60 20 (331)
Adjusted net income available to common shareholders (Non-GAAP) b $ 275 $ 321 $ 284 $ 255 $ 193
Diluted Shares (GAAP) c 550 556 557 556 551
Diluted EPS (GAAP) a/c $ 0.41 $ 0.53 $ 0.40 $ 0.42 $ 0.95
Adjusted diluted EPS (Non-GAAP) b/c $ 0.50 $ 0.58 $ 0.51 $ 0.46 $ 0.35
Adjusted Net Income ("NI") and Adjusted Return on Assets ("ROA")
Net Income ("NI") (GAAP) $ 235 $ 311 $ 235 $ 245 $ 539
Plus Tax effected notable items (Non-GAAP) (a) 51 26 60 20 (331)
Adjusted NI (Non-GAAP) $ 286 $ 337 $ 295 $ 265 $ 208
NI (annualized) (GAAP) d $ 931 $ 1,247 $ 955 $ 974 $ 2,144
Adjusted NI (annualized) (Non-GAAP) e $ 1,133 $ 1,353 $ 1,198 $ 1,055 $ 829
Average assets (GAAP) f $ 88,401 $ 87,559 $ 85,401 $ 83,809 $ 81,683
ROA (GAAP) d/f 1.05 % 1.42 % 1.12 % 1.16 % 2.63 %
Adjusted ROA (Non-GAAP) e/f 1.28 % 1.54 % 1.40 % 1.26 % 1.01 %
Return on Average Common Equity ("ROCE")/ Return on Average Tangible Common Equity ("ROTCE")/ Adjusted ROTCE
Net income available to common shareholders ("NIAC") (GAAP) g $ 887 $ 1,182 $ 911 $ 933 $ 2,082
Adjusted Net income available to common shareholders (annualized) (Non-GAAP) h $ 1,089 $ 1,288 $ 1,154 $ 1,013 $ 767
Average Common Equity (GAAP) i $ 7,761 $ 7,651 $ 7,583 $ 7,444 $ 7,309
Intangible Assets (GAAP) (b) 1,829 1,843 1,857 1,871 1,794
Average Tangible Common Equity (Non-GAAP) j $ 5,932 $ 5,808 $ 5,726 $ 5,573 $ 5,515
ROCE (GAAP) g/i 11.43 % 15.45 % 12.01 % 12.53 % 28.49 %
ROTCE (Non-GAAP) g/j 14.95 % 20.36 % 15.90 % 16.73 % 37.75 %
Adjusted ROTCE (Non-GAAP) h/j 18.36 % 22.18 % 20.15 % 18.18 % 13.90 %
(a) Amounts adjusted for notable items as detailed on page 9.
(b) Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.

23

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
(In millions) 3Q21 2Q21 1Q21 4Q20 3Q20
Adjusted Noninterest Income as a % of Total Revenue
Noninterest income (GAAP) k $ 247 $ 285 $ 298 $ 288 $ 823
Plus notable items (GAAP) (a) 22 2 (1) (1) (532)
Adjusted noninterest income (Non-GAAP) l $ 268 $ 287 $ 297 $ 288 $ 291
Revenue (GAAP) m $ 738 $ 781 $ 806 $ 810 $ 1,355
Taxable-equivalent adjustment 3 3 3 3 3
Revenue- Taxable-equivalent (Non-GAAP) 741 784 809 813 1,358
Plus notable items (GAAP) (a) 22 2 (1) (1) (532)
Adjusted revenue (Non-GAAP) n $ 763 $ 787 $ 808 $ 813 $ 826
Noninterest income as a % of total revenue (GAAP) k/m 33.39 % 36.43 % 37.00 % 35.61 % 60.72 %
Adjusted noninterest income as a % of total revenue (Non-GAAP) l/n 35.14 % 36.49 % 36.78 % 35.42 % 35.20 %
Adjusted Efficiency Ratio
Noninterest expense (GAAP) o $ 526 $ 497 $ 544 $ 508 $ 587
Plus notable items (GAAP) (a) (46) (32) (80) (34) (116)
Adjusted noninterest expense (Non-GAAP) p $ 480 $ 465 $ 464 $ 474 $ 471
Revenue (GAAP) q $ 738 $ 781 $ 806 $ 810 $ 1,355
Taxable-equivalent adjustment 3 3 3 3 3
Revenue- Taxable-equivalent (Non-GAAP) 741 784 809 813 1,358
Plus notable items (GAAP) (a) 22 2 (1) (1) (532)
Adjusted revenue (Non-GAAP) r $ 763 $ 787 $ 808 $ 813 $ 826
Efficiency ratio (GAAP) o/q 71.21 % 63.67 % 67.53 % 62.71 % 43.31 %
Adjusted efficiency ratio (Non-GAAP) p/r 62.87 % 59.17 % 57.49 % 58.34 % 57.06 %
(a) Amounts adjusted for notable items as detailed on page 9.
(b) Includes goodwill and other intangible assets, net of amortization.
Numbers may not foot due to rounding.
24

CONSOLIDATED NON-GAAP TO GAAP RECONCILIATION
Quarterly, Unaudited
(In millions)
3Q21 vs 2Q21
NII/NIM Analysis NII % NIM
3Q21 Reported (FTE) $ 495 2.40 %
Less: non-core items
PPP coupon income and fees 32 0.07
Time Deposit Amortization 0 -
Loan Accretion 20 0.10
IBKC Premium Amortization (12) (0.06)
3Q21 Core (Non-GAAP) $ 454 1 % 2.28 %
2Q21 Reported (FTE) $ 500 2.47 %
Less: non-core items
PPP coupon income and fees 35 0.03
Time Deposit Amortization 1 -
Loan Accretion 25 0.14
IBKC Premium Amortization (12) (0.06)
2Q21 Core (Non-GAAP) $ 450 2.36 %
Numbers may not foot due to rounding.

Period-end Average
($s in millions) 3Q21 2Q21 3Q21 vs 2Q21 3Q21 2Q21 3Q21 vs 2Q21
Loans excluding LMC & PPP $ % $ %
Total Commercial excl. LMC & PPP $ 36,553 $ 36,104 $ 449 1 % $ 36,196 $ 35,792 $ 404 1 %
Total Consumer 11,726 11,867 (141) (1) % 11,767 11,939 (172) (1) %
Total Loans excl. LMC & PPP 48,279 47,971 308 1 % 47,963 47,731 233 - %
PPP 2,017 3,840 (1,823) (47) % 2,925 4,764 (1,839) (39) %
LMC 5,139 4,876 263 5 % 4,620 4,334 287 7 %
Total Loans $ 55,435 $ 56,687 $ (1,252) (2) % $ 55,508 $ 56,829 $ (1,321) (2) %
Loans excluding PPP
Total Commercial excl. PPP $ 41,693 $ 40,980 $ 713 2 % $ 40,816 $ 40,125 $ 691 2 %
Total Consumer 11,726 11,867 (141) (1) % 11,767 11,939 (172) (1) %
Total Loans excl. PPP $ 53,418 $ 52,847 572 1 % $ 52,583 $ 52,064 519 1 %
PPP 2,017 3,840 (1,823) (47) % 2,925 4,764 (1,839) (39) %
Total Loans $ 55,435 $ 56,687 $ (1,252) (2) % $ 55,508 $ 56,829 (1,321) (2) %
Numbers may not foot due to rounding.
25


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 to total revenue - taxable equivalent.
Efficiency Ratio: Ratio is noninterest expense to total revenue - taxable equivalent .
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.
Allowance / charge-offs: Ratio is allowance for loan and lease losses to annualized net charge-offs.

Operating Segments
Regional Banking segment: Offers financial products and services, including traditional lending and deposit taking, to consumer and commercial customers primarily in the southern and southeastern U.S. and other selected markets. Regional Banking also provides investment, wealth management, financial planning, trust and asset management services for consumer customers.

Specialty Banking segment: Consists of lines of business that deliver product offerings and services with specialized industry knowledge. Specialty Banking's lines of business include asset-based lending, mortgage warehouse lending, commercial real estate, franchise finance, correspondent banking, equipment finance, mortgage, and title insurance. In addition to traditional lending and deposit taking, Specialty Banking also delivers treasury management solutions, loan syndications, international banking and SBA lending. Additionally, Specialty Banking 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, properties, technology, credit risk and bank operations are allocated to the activities of Regional Banking, Specialty Banking, and Corporate. Additionally, the Corporate segment includes centralized management of capital and funding to support the business activities of the company including management of wholesale funding, liquidity, and capital management and allocation. Finally, the Corporate segment 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.

26