CITIZENS FINANCIAL GROUP INC/RI - FORM 8-K - EX-99.3

Attached files

file	filename
8-K - 8-K - CITIZENS FINANCIAL GROUP INC/RI	d315713d8k.htm
EX-99.2 - EX-99.2 - CITIZENS FINANCIAL GROUP INC/RI	d315713dex992.htm
EX-99.1 - EX-99.1 - CITIZENS FINANCIAL GROUP INC/RI	d315713dex991.htm

Exhibit 99.3

LOGO

Citizens Financial Group, Inc.

Financial Supplement

Fourth Quarter and Full Year 2016


Table of Contents	Page

Consolidated Financial Highlights		3

Consolidated Statements of Operations (unaudited)		5

Consolidated Balance Sheets (unaudited)		6

Loans and Deposits		7

Average Balance Sheets and Annualized Yields		8

Segment Financial Highlights		10

Credit-Related Information:
Credit Exposure		21
Nonperforming Assets		22
Charge-offs, Recoveries and Related Ratios		23
Summary of Changes in the Allowances		25
Allowance Components		25

Capital and Ratios		26

Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations		27

The information in this Financial Supplement is preliminary and based on company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying pages. The company does not undertake an obligation to, and disclaims any duty to, update any of the information provided. Any forward-looking statements in this Financial Supplement are subject to the forward-looking statements language contained in the company’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which can be found on the SEC’s website (www.sec.gov) or on the company’s website (www.citizensbank.com). The company’s future financial performance is subject to the risks and uncertainties described in its SEC filings.

CONSOLIDATED FINANCIAL HIGHLIGHTS

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


	QUARTERLY TRENDS																											FULL YEAR
																4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016			2015			2015
																$			%			$			%									$			%
SELECTED OPERATING DATA
Total revenue	$	1,363		$	1,380		$	1,278		$	1,234		$	1,232		($	17	)		(1	%)	$	131			11	%	$	5,255		$	4,824		$	431			9	%
Noninterest expense		847			867			827			811			810			(20	)		(2	)		37			5			3,352			3,259			93			3

Profit before provision for credit losses		516			513			451			423			422			3			1			94			22			1,903			1,565			338			22
Provision for credit losses		102			86			90			91			91			16			19			11			12			369			302			67			22
NET INCOME		282			297			243			223			221			(15	)		(5	)		61			28			1,045			840			205			24
Net income, adjusted¹		282			278			243			223			221			4			1			61			28			1,026			871			155			18
Net income available to common stockholders		282			290			243			216			221			(8	)		(3	)		61			28			1,031			833			198			24
Net income available to common stockholders, adjusted¹		282			271			243			216			221			11			4			61			28			1,012			864			148			17
PER COMMON SHARE DATA
Basic earnings	$	0.55		$	0.56		$	0.46		$	0.41		$	0.42		($	0.01	)		(2	%)	$	0.13			31	%	$	1.97		$	1.55		$	0.42			27	%
Diluted earnings		0.55			0.56			0.46			0.41			0.42			(0.01	)		(2	)		0.13			31			1.97			1.55			0.42			27
Basic earnings, adjusted¹		0.55			0.52			0.46			0.41			0.42			0.03			6			0.13			31			1.94			1.61			0.33			20
Diluted earnings, adjusted¹		0.55			0.52			0.46			0.41			0.42			0.03			6			0.13			31			1.93			1.61			0.32			20
Cash dividends declared and paid per common share		0.12			0.12			0.12			0.10			0.10			—			—			0.02			20			0.46			0.40			0.06			15
Book value per common share		38.09			38.47			37.76			37.28			36.76			(0.38	)		(1	)		1.33			4			38.09			36.76			1.33			4
Tangible book value per common share		25.69			26.20			25.72			25.21			24.63			(0.51	)		(2	)		1.06			4			25.69			24.63			1.06			4
Dividend payout ratio		22	%		22	%		26	%		24	%		24	%		31	bps					(214	) bps					23	%		26	%		(306	) bps
COMMON SHARES OUTSTANDING
Average: Basic		512,015,920			519,458,976			528,968,330			528,070,648			527,648,630			(7,443,056	)		(1	%)		(15,632,710	)		(3	%)		522,093,545			535,599,731			(13,506,186	)		(3	%)
Diluted		513,897,085			521,122,466			530,365,203			530,446,188			530,275,673			(7,225,381	)		(1	)		(16,378,588	)		(3	)		523,930,718			538,220,898			(14,290,180	)		(3	)
Common shares at period-end		511,954,871			518,148,345			529,094,976			528,933,727			527,774,428			(6,193,474	)		(1	)		(15,819,557	)		(3	)		511,954,871			527,774,428			(15,819,557	)		(3	)
SHARE PRICE
High	$	36.56		$	25.11		$	24.24		$	25.99		$	27.17		$	11.45			46	%	$	9.39			35	%	$	36.56		$	28.71		$	7.85			27	%
Low		24.22			18.58			18.34			18.04			22.48			5.64			30			1.74			8			18.04			21.14			(3.10	)		(15	)
Close		35.63			24.71			19.98			20.95			26.19			10.92			44			9.44			36			35.63			26.19			9.44			36
Market capitalization		18,241			12,803			10,571			11,081			13,822			5,438			42			4,419			32			18,241			13,822			4,419			32
SEGMENT NET INCOME
Consumer Banking	$	92		$	92		$	90		$	71		$	67		$	—			—	%	$	25			37	%	$	345		$	262		$	83			32	%
Commercial Banking		172			162			164			133			152			10			6			20			13			631			579			52			9
Other		18			43			(11	)		19			2			(25	)		(58	)		16			NM			69			(1	)		70			NM

NET INCOME	$	282		$	297		$	243		$	223		$	221		($	15	)		(5	%)	$	61			28	%	$	1,045		$	840		$	205			24	%

¹	These are non-GAAP financial measures. For further information on these measures, refer to “Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations” at the end of this document.

CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions, except ratio and headcount data)


	QUARTERLY TRENDS																											FULL YEAR
																4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016			2015			2015
																$/bps			%			$/bps			%									$/bps			%
FINANCIAL RATIOS
Net interest margin		2.90	%		2.84	%		2.84	%		2.86	%		2.77	%		6	bps					13	bps					2.86	%		2.75	%		11	bps
Return on average common equity		5.70			5.82			4.94			4.45			4.51			(12	) bps					119	bps					5.23			4.30			93	bps
Return on average common equity, adjusted¹		5.70			5.44			4.94			4.45			4.51			26	bps					119	bps					5.14			4.46			68	bps
Return on average tangible common equity		8.43			8.58			7.30			6.61			6.75			(15	) bps					168	bps					7.74			6.45			129	bps
Return on average tangible common equity, adjusted¹		8.43			8.02			7.30			6.61			6.75			41	bps					168	bps					7.60			6.69			91	bps
Return on average total assets		0.76			0.82			0.69			0.65			0.64			(6	) bps					12	bps					0.73			0.62			11	bps
Return on average total assets, adjusted¹		0.76			0.77			0.69			0.65			0.64			(1	) bps					12	bps					0.72			0.64			8	bps
Return on average total tangible assets		0.79			0.86			0.72			0.68			0.67			(7	) bps					12	bps					0.76			0.65			11	bps
Return on average total tangible assets, adjusted¹		0.79			0.80			0.72			0.68			0.67			(1	) bps					12	bps					0.75			0.68			7	bps
Effective income tax rate		31.90			30.46			32.61			32.87			33.45			144	bps					(155	) bps					31.88			33.52			(164	) bps
Efficiency ratio		62.18			62.88			64.71			65.66			65.76			(70	) bps					(358	) bps					63.80			67.56			(376	) bps
Efficiency ratio, adjusted¹		62.18			63.31			64.71			65.66			65.76			(113	) bps					(358	) bps					63.92			66.52			(260	) bps
CAPITAL RATIOS - PERIOD END (PRELIMINARY)²
CET1 capital ratio		11.2	%		11.3	%		11.5	%		11.6	%		11.7	%
Tier 1 capital ratio		11.4			11.5			11.7			11.9			12.0
Total capital ratio		14.0			14.2			14.9			15.1			15.3
Tier 1 leverage ratio		9.9			10.1			10.3			10.4			10.5
SELECTED BALANCE SHEET DATA (PERIOD END)
Total assets	$	149,520		$	147,015		$	145,183		$	140,077		$	138,208		$	2,505			2	%	$	11,312			8	%	$	149,520		$	138,208		$	11,312			8	%
Loans and leases:
Commercial		51,651			50,389			49,557			47,972			46,214			1,262			3			5,437			12			51,651			46,214			5,437			12
Retail		56,018			55,078			53,994			53,019			52,828			940			2			3,190			6			56,018			52,828			3,190			6

Total loans and leases		107,669			105,467			103,551			100,991			99,042			2,202			2			8,627			9			107,669			99,042			8,627			9
Deposits		109,804			108,327			106,257			102,606			102,539			1,477			1			7,265			7			109,804			102,539			7,265			7
Long-term borrowed funds		12,790			11,902			11,810			10,035			9,886			888			7			2,904			29			12,790			9,886			2,904			29
Total stockholders’ equity		19,747			20,181			20,226			19,965			19,646			(434	)		(2	)		101			1			19,747			19,646			101			1
Loans-to-deposits ratio (period-end balances)³		98.62	%		97.85	%		98.25	%		99.16	%		96.94	%		77	bps					168	bps					98.62	%		96.94	%		168	bps
Loans-to-deposits ratio (average balances)³		98.14			98.06			99.52			98.66			97.21			8	bps					93	bps					98.58			97.37			121	bps
Full-time equivalent colleagues		17,639			17,625			17,828			17,902			17,714			14			—			(75	)		—			17,639			17,714			(75	)		—

¹	These are non-GAAP financial measures. For further information on these measures, refer to “Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations” at the end of this document.

²	Basel III transitional rules for institutions applying the standardized approach to calculating risk-weighted assets became effective January 1, 2015. The capital ratios and associated components are prepared using the Basel III standardized transitional approach.

³	Ratios include loans and leases held for sale.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(dollars in millions)


	QUARTERLY TRENDS																						FULL YEAR
											4Q16 Change																2016 Change
	4Q16		3Q16		2Q16		1Q16		4Q15		3Q16						4Q15						2016		2015		2015
											$			%			$			%							$			%
INTEREST INCOME:
Interest and fees on loans and leases	$	963	$	926	$	896	$	868	$	830	$	37			4	%	$	133			16	%	$	3,653	$	3,211	$	442			14	%
Interest and fees on loans held for sale		5		4		3		3		2		1			25			3			150			15		10		5			50
Interest and fees on other loans held for sale		—		1		4		1		—		(1	)		(100	)		—			—			6		7		(1	)		(14	)
Investment securities		152		146		141		145		153		6			4			(1	)		(1	)		584		621		(37	)		(6	)
Interest-bearing deposits in banks		2		2		2		2		1		—			—			1			100			8		5		3			60

Total interest income		1,122		1,079		1,046		1,019		986		43			4			136			14			4,266		3,854		412			11

INTEREST EXPENSE:
Deposits		76		71		63		60		60		5			7			16			27			270		237		33			14
Federal funds purchased and securities sold under agreements to repurchase		—		1		—		1		3		(1	)		(100	)		(3	)		(100	)		2		16		(14	)		(88	)
Other short-term borrowed funds		7		10		12		11		16		(3	)		(30	)		(9	)		(56	)		40		67		(27	)		(40	)
Long-term borrowed funds		53		52		48		43		37		1			2			16			43			196		132		64			48

Total interest expense		136		134		123		115		116		2			1			20			17			508		452		56			12

Net interest income		986		945		923		904		870		41			4			116			13			3,758		3,402		356			10

NONINTEREST INCOME:
Service charges and fees		153		152		150		144		156		1			1			(3	)		(2	)		599		575		24			4
Card fees		50		52		51		50		60		(2	)		(4	)		(10	)		(17	)		203		232		(29	)		(13	)
Trust and investment services fees		34		37		38		37		39		(3	)		(8	)		(5	)		(13	)		146		157		(11	)		(7	)
Capital markets fees		34		34		35		22		15		—			—			19			127			125		88		37			42
Foreign exchange and letter of credit fees		25		23		21		21		23		2			9			2			9			90		90		—			—
Mortgage banking fees		36		33		25		18		20		3			9			16			80			112		101		11			11
Bank-owned life insurance income		14		14		13		13		16		—			—			(2	)		(13	)		54		56		(2	)		(4	)
Securities gains, net		3		—		4		9		10		3			100			(7	)		(70	)		16		29		(13	)		(45	)
Other income		28		90		18		16		23		(62	)		(69	)		5			22			152		94		58			62

Total noninterest income		377		435		355		330		362		(58	)		(13	)		15			4			1,497		1,422		75			5

TOTAL REVENUE		1,363		1,380		1,278		1,234		1,232		(17	)		(1	)		131			11			5,255		4,824		431			9
Provision for credit losses		102		86		90		91		91		16			19			11			12			369		302		67			22
NONINTEREST EXPENSE:
Salaries and employee benefits		420		432		432		425		402		(12	)		(3	)		18			4			1,709		1,636		73			4
Outside services		98		102		86		91		104		(4	)		(4	)		(6	)		(6	)		377		371		6			2
Occupancy		77		78		76		76		74		(1	)		(1	)		3			4			307		319		(12	)		(4	)
Equipment expense		69		65		64		65		67		4			6			2			3			263		257		6			2
Amortization of software		44		46		41		39		38		(2	)		(4	)		6			16			170		146		24			16
Other operating expense		139		144		128		115		125		(5	)		(3	)		14			11			526		530		(4	)		(1	)

Total noninterest expense		847		867		827		811		810		(20	)		(2	)		37			5			3,352		3,259		93			3

Income before income tax expense		414		427		361		332		331		(13	)		(3	)		83			25			1,534		1,263		271			21
Income tax expense		132		130		118		109		110		2			2			22			20			489		423		66			16

NET INCOME	$	282	$	297	$	243	$	223	$	221	($	15	)		(5	%)	$	61			28	%	$	1,045	$	840	$	205			24	%

Net income, adjusted¹	$	282	$	278	$	243	$	223	$	221	$	4			1	%	$	61			28	%	$	1,026	$	871	$	155			18	%

Net income available to common stockholders	$	282	$	290	$	243	$	216	$	221	($	8	)		(3	%)	$	61			28	%	$	1,031	$	833	$	198			24	%

Net income available to common stockholders, adjusted¹	$	282	$	271	$	243	$	216	$	221	$	11			4	%	$	61			28	%	$	1,012	$	864	$	148			17	%

¹	These are non-GAAP financial measures. For further information on these measures, refer to “Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations” at the end of this document.

CONSOLIDATED BALANCE SHEETS (unaudited)

(dollars in millions)


PERIOD END BALANCES	AS OF															DECEMBER 31, 2016 CHANGE
	Dec 31, 2016			Sept 30, 2016			June 30, 2016			Mar 31, 2016			Dec 31, 2015			Sept 30, 2016						Dec 31, 2015
																$			%			$			%
ASSETS:
Cash and due from banks	$	955		$	915		$	976		$	839		$	1,099		$	40			4	%	($	144	)		(13	%)
Interest-bearing cash and due from banks		2,749			2,000			2,679			1,016			1,986			749			37			763			38
Interest-bearing deposits in banks		439			720			727			534			356			(281	)		(39	)		83			23
Securities available for sale, at fair value		19,501			19,425			18,479			17,964			17,884			76			—			1,617			9
Securities held to maturity		5,071			5,289			4,973			5,129			5,258			(218	)		(4	)		(187	)		(4	)
Other investment securities, at fair value		96			113			73			68			70			(17	)		(15	)		26			37
Other investment securities, at cost		942			877			873			896			863			65			7			79			9
Loans held for sale, at fair value		583			526			478			365			325			57			11			258			79
Other loans held for sale		42			—			372			386			40			42			100			2			5
Loans and leases		107,669			105,467			103,551			100,991			99,042			2,202			2			8,627			9
Less: Allowance for loan and lease losses		(1,236	)		(1,240	)		(1,246	)		(1,224	)		(1,216	)		4			—			(20	)		(2	)

Net loans and leases		106,433			104,227			102,305			99,767			97,826			2,206			2			8,607			9
Derivative assets		627			1,102			1,312			1,068			625			(475	)		(43	)		2			—
Premises and equipment		601			540			551			570			595			61			11			6			1
Bank-owned life insurance		1,612			1,600			1,587			1,576			1,564			12			1			48			3
Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—
Due from broker		—			—			132			161			—			—			—			—			—
Other assets		2,993			2,805			2,790			2,862			2,841			188			7			152			5

TOTAL ASSETS	$	149,520		$	147,015		$	145,183		$	140,077		$	138,208		$	2,505			2	%	$	11,312			8	%

LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Deposits:
Noninterest-bearing	$	28,472		$	27,292		$	27,108		$	27,186		$	27,649		$	1,180			4	%	$	823			3	%
Interest-bearing		81,332			81,035			79,149			75,420			74,890			297			—			6,442			9

Total deposits		109,804			108,327			106,257			102,606			102,539			1,477			1			7,265			7
Federal funds purchased and securities sold under agreements to repurchase		1,148			900			717			714			802			248			28			346			43
Other short-term borrowed funds		3,211			2,512			2,770			3,300			2,630			699			28			581			22
Derivative liabilities		659			840			1,010			832			485			(181	)		(22	)		174			36
Deferred taxes, net		714			994			961			852			730			(280	)		(28	)		(16	)		(2	)
Long-term borrowed funds		12,790			11,902			11,810			10,035			9,886			888			7			2,904			29
Due to broker		—			—			86			276			—			—			—			—			—
Other liabilities		1,447			1,359			1,346			1,497			1,490			88			6			(43	)		(3	)

TOTAL LIABILITIES		129,773			126,834			124,957			120,112			118,562			2,939			2			11,211			9
STOCKHOLDERS’ EQUITY:
Preferred stock:
$25.00 par value, 100,000,000 shares authorized		247			247			247			247			247			—			—			—			—
Common stock:
$0.01 par value, 1,000,000,000 shares authorized for each of the periods presented		6			6			6			6			6			—			—			—			—
Additional paid-in capital		18,722			18,740			18,735			18,730			18,725			(18	)		—			(3	)		—
Retained earnings		2,703			2,483			2,255			2,076			1,913			220			9			790			41
Treasury stock, at cost		(1,263	)		(1,108	)		(858	)		(858	)		(858	)		(155	)		(14	)		(405	)		(47	)
Accumulated other comprehensive loss		(668	)		(187	)		(159	)		(236	)		(387	)		(481	)		NM			(281	)		(73	)

TOTAL STOCKHOLDERS’ EQUITY		19,747			20,181			20,226			19,965			19,646			(434	)		(2	)		101			1

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	149,520		$	147,015		$	145,183		$	140,077		$	138,208		$	2,505			2	%	$	11,312			8	%

Memo: Total tangible common equity	$	13,154		$	13,576		$	13,608		$	13,333		$	13,000		($	422	)		(3	%)	$	154			1	%

LOANS AND DEPOSITS

(dollars in millions)


PERIOD END BALANCES	AS OF										DECEMBER 31, 2016 CHANGE
	Dec 31, 2016		Sept 30, 2016		June 30, 2016		Mar 31, 2016		Dec 31, 2015		Sept 30, 2016						Dec 31, 2015
											$			%			$			%
LOANS AND LEASES:
Commercial	$	37,274	$	36,449	$	35,927	$	34,671	$	33,264	$	825			2	%	$	4,010			12	%
Commercial real estate		10,624		10,152		9,825		9,406		8,971		472			5			1,653			18
Leases		3,753		3,788		3,805		3,895		3,979		(35	)		(1	)		(226	)		(6	)

Total commercial		51,651		50,389		49,557		47,972		46,214		1,262			3			5,437			12

Residential mortgages		15,115		14,602		13,855		13,345		13,318		513			4			1,797			13
Home equity loans		1,858		2,027		2,177		2,313		2,557		(169	)		(8	)		(699	)		(27	)
Home equity lines of credit		14,100		14,271		14,418		14,526		14,674		(171	)		(1	)		(574	)		(4	)
Home equity loans serviced by others¹		750		796		860		930		986		(46	)		(6	)		(236	)		(24	)
Home equity lines of credit serviced by others¹		219		238		273		339		389		(19	)		(8	)		(170	)		(44	)
Automobile		13,938		14,063		14,075		13,847		13,828		(125	)		(1	)		110			1
Student		6,610		5,997		5,516		5,006		4,359		613			10			2,251			52
Credit card		1,691		1,644		1,613		1,581		1,634		47			3			57			3
Other retail		1,737		1,440		1,207		1,132		1,083		297			21			654			60

Total retail		56,018		55,078		53,994		53,019		52,828		940			2			3,190			6

Total loans and leases	$	107,669	$	105,467	$	103,551	$	100,991	$	99,042	$	2,202			2	%	$	8,627			9	%


Loans held for sale	$	583	$	526	$	478	$	365	$	325	$	57			11	%	$	258			79	%
Other loans held for sale²		42		—		372		386		40		42			100			2			5

Loans and loans held for sale	$	108,294	$	105,993	$	104,401	$	101,742	$	99,407	$	2,301			2	%	$	8,887			9	%


DEPOSITS:
Demand	$	28,472	$	27,292	$	27,108	$	27,186	$	27,649	$	1,180			4	%	$	823			3	%
Checking with interest		20,714		20,573		19,838		18,706		17,921		141			1			2,793			16
Regular savings		8,964		8,797		8,841		8,748		8,218		167			2			746			9
Money market accounts		38,176		38,258		37,503		35,513		36,727		(82	)		—			1,449			4
Term deposits		13,478		13,407		12,967		12,453		12,024		71			1			1,454			12

Total deposits	$	109,804	$	108,327	$	106,257	$	102,606	$	102,539	$	1,477			1	%	$	7,265			7	%

¹	Our Serviced by Others (“SBO”) portfolio consists of purchased loans and lines of credit that were originally serviced by others. We now service a portion of this portfolio internally.

²	During the third quarter of 2016 we sold a $310 million TDR loan portfolio, which was previously reported in other loans held for sale.

AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS

(dollars in millions)


AVERAGE BALANCES	QUARTERLY TRENDS																											FULL YEAR
																4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016			2015			2015
																$			%			$			%									$			%
ASSETS:
Interest-bearing cash and due from banks and deposits in banks	$	1,979		$	2,121		$	1,948		$	1,675		$	1,526		($	142	)		(7	%)	$	453			30	%	$	1,931		$	1,746		$	185			11	%

Taxable investment securities		25,680			24,961			24,050			23,864			24,129			719			3			1,551			6			24,643			24,649			(6	)		—
Non-taxable investment securities		8			8			9			9			9			—			—			(1	)		(11	)		8			9			(1	)		(11	)

Total investment securities		25,688			24,969			24,059			23,873			24,138			719			3			1,550			6			24,651			24,658			(7	)		—

Investment securities and interest-bearing deposits		27,667			27,090			26,007			25,548			25,664			577			2			2,003			8			26,582			26,404			178			1

Commercial		36,965			35,986			35,622			34,018			33,080			979			3			3,885			12			35,652			32,673			2,979			9
Commercial real estate		10,294			9,905			9,649			9,108			8,855			389			4			1,439			16			9,741			8,231			1,510			18
Leases		3,773			3,813			3,863			3,917			3,884			(40	)		(1	)		(111	)		(3	)		3,841			3,902			(61	)		(2	)

Total commercial		51,032			49,704			49,134			47,043			45,819			1,328			3			5,213			11			49,234			44,806			4,428			10

Residential mortgages		14,896			14,155			13,491			13,465			13,030			741			5			1,866			14			14,005			12,338			1,667			14
Home equity loans		1,934			2,088			2,231			2,471			2,751			(154	)		(7	)		(817	)		(30	)		2,180			3,025			(845	)		(28	)
Home equity lines of credit		14,188			14,314			14,477			14,632			14,659			(126	)		(1	)		(471	)		(3	)		14,402			14,958			(556	)		(4	)
Home equity loans serviced by others¹		774			837			899			958			1,017			(63	)		(8	)		(243	)		(24	)		867			1,117			(250	)		(22	)
Home equity lines of credit serviced by others¹		228			256			299			340			375			(28	)		(11	)		(147	)		(39	)		281			453			(172	)		(38	)
Automobile		13,994			14,053			13,972			13,792			13,824			(59	)		—			170			1			13,953			13,516			437			3
Student		6,215			5,750			5,407			4,852			4,052			465			8			2,163			53			5,558			3,313			2,245			68
Credit cards		1,654			1,623			1,600			1,601			1,625			31			2			29			2			1,620			1,621			(1	)		—
Other retail		1,619			1,256			1,167			1,108			1,047			363			29			572			55			1,288			1,003			285			28

Total retail		55,502			54,332			53,543			53,219			52,380			1,170			2			3,122			6			54,154			51,344			2,810			5

Total loans and leases		106,534			104,036			102,677			100,262			98,199			2,498			2			8,335			8			103,388			96,150			7,238			8
Loans held for sale, at fair value		551			474			368			306			325			77			16			226			70			425			301			124			41
Other loans held for sale³		6			69			440			49			13			(63	)		(91	)		(7	)		(54	)		141			95			46			48

Interest-earning assets		134,758			131,669			129,492			126,165			124,201			3,089			2			10,557			8			130,536			122,950			7,586			6
Allowance for loan and lease losses		(1,234	)		(1,243	)		(1,219	)		(1,212	)		(1,196	)		9			1			(38	)		(3	)		(1,227	)		(1,196	)		(31	)		(3	)
Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			6,876			—			—
Other noninterest-earning assets		6,915			7,097			7,030			6,951			6,417			(182	)		(3	)		498			8			6,998			6,440			558			9

Total noninterest-earning assets		12,557			12,730			12,687			12,615			12,097			(173	)		(1	)		460			4			12,647			12,120			527			4

TOTAL ASSETS	$	147,315		$	144,399		$	142,179		$	138,780		$	136,298		$	2,916			2	%	$	11,017			8	%	$	143,183		$	135,070		$	8,113			6	%

LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Checking with interest	$	20,268		$	19,997		$	19,003		$	17,993		$	17,117		$	271			1	%	$	3,151			18	%	$	19,320		$	16,666		$	2,654			16	%
Money market accounts		38,397			37,597			36,187			36,225			36,488			800			2			1,909			5			37,106			35,401			1,705			5
Regular savings		8,826			8,779			8,762			8,394			8,087			47			1			739			9			8,691			8,057			634			8
Term deposits		13,191			12,806			12,581			12,199			12,201			385			3			990			8			12,696			12,424			272			2

Total interest-bearing deposits		80,682			79,179			76,533			74,811			73,893			1,503			2			6,789			9			77,813			72,548			5,265			7
Federal funds purchased and securities sold under agreements to repurchase²		1,024			910			974			881			1,635			114			13			(611	)		(37	)		947			3,364			(2,417	)		(72	)
Other short-term borrowed funds		3,428			2,564			3,743			3,098			4,964			864			34			(1,536	)		(31	)		3,207			5,865			(2,658	)		(45	)
Long-term borrowed funds		10,758			10,905			10,321			9,894			6,004			(147	)		(1	)		4,754			79			10,472			4,479			5,993			134

Total borrowed funds		15,210			14,379			15,038			13,873			12,603			831			6			2,607			21			14,626			13,708			918			7

Total interest-bearing liabilities		95,892			93,558			91,571			88,684			86,496			2,334			2			9,396			11			92,439			86,256			6,183			7
Total demand deposits		28,443			27,467			27,448			27,170			27,475			976			4			968			4			27,634			26,606			1,028			4
Other liabilities		3,088			3,317			3,145			3,112			2,721			(229	)		(7	)		367			13			3,165			2,671			494			18

TOTAL LIABILITIES		127,423			124,342			122,164			118,966			116,692			3,081			2			10,731			9			123,238			115,533			7,705			7

STOCKHOLDERS’ EQUITY		19,892			20,057			20,015			19,814			19,606			(165	)		(1	)		286			1			19,945			19,537			408			2

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	147,315		$	144,399		$	142,179		$	138,780		$	136,298		$	2,916			2	%	$	11,017			8	%	$	143,183		$	135,070		$	8,113			6	%

Memo: Total average tangible common equity	$	13,291		$	13,442		$	13,386		$	13,169		$	12,948		($	151	)		(1	%)	$	343			3	%	$	13,322		$	12,919		$	403			3	%

Total deposits (interest-bearing and demand)	$	109,125		$	106,646		$	103,981		$	101,981		$	101,368		$	2,479			2	%	$	7,757			8	%	$	105,447		$	99,154		$	6,293			6	%

¹	Our SBO portfolio consists of purchased loans and lines of credit that were originally serviced by others. We now service a portion of this portfolio internally.

²	Balances are net of certain short-term receivables associated with reverse repurchase agreements; interest expense includes the full cost of the repurchase agreements and certain hedging costs.

³	During the first half of 2016, certain troubled debt restructured loans were transferred from loans and leases to other loans held for sale. The average balances of troubled debt restructured loans held in other loans held for sale was $105 million for the year ended December 31 2016.

AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS, CONTINUED

(dollars in millions, except rates)


	QUARTERLY TRENDS																									FULL YEAR
AVERAGE ANNUALIZED YIELDS & RATES	4Q16					3Q16					2Q16					1Q16					4Q15					2016					2015
	Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income /Expense		Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense		Rate			Income/ Expense
INTEREST-EARNING ASSETS:
Interest-bearing deposits in banks		0.43	%	$	2		0.41	%	$	2		0.39	%	$	2		0.42	%	$	2		0.41	%	$	1		0.41	%	$	8		0.29	%	$	5

Taxable investment securities		2.36			152		2.34			146		2.35			141		2.43			145		2.52			153		2.37			584		2.52			621
Non-taxable investment securities		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—

Total investment securities		2.36			152		2.34			146		2.35			141		2.43			145		2.52			153		2.37			584		2.52			621

Investment securities and interest-bearing deposits					154					148					143					147					154					592					626

Commercial		3.22			304		3.14			290		3.09			278		3.08			264		2.92			247		3.13			1,136		2.87			951
Commercial real estate		2.98			78		2.82			71		2.74			67		2.69			62		2.49			56		2.81			278		2.53			211
Leases		2.32			22		2.43			23		2.45			24		2.44			24		2.44			23		2.41			93		2.50			97

Total commercial		3.11			404		3.02			384		2.97			369		2.95			350		2.80			326		3.01			1,507		2.78			1,259

Residential mortgages		3.46			129		3.59			127		3.61			122		3.76			126		3.77			123		3.60			504		3.77			465
Home equity loans		5.66			28		5.75			30		5.64			31		5.51			34		5.30			37		5.64			123		5.38			163
Home equity lines of credit		3.21			114		3.20			115		3.18			115		3.11			113		2.95			109		3.18			457		2.95			441
Home equity loans serviced by others¹		7.18			13		7.24			16		7.11			16		6.94			17		6.94			17		7.11			62		6.94			77
Home equity lines of credit serviced by others¹		3.17			2		2.47			2		2.02			1		2.19			2		2.40			2		2.41			7		2.44			11
Automobile		3.03			107		2.96			104		2.95			103		2.83			97		2.80			98		2.94			411		2.73			372
Student		5.11			80		5.10			73		5.07			69		5.02			60		4.97			51		5.08			282		5.03			167
Credit cards		11.14			46		11.24			46		11.18			44		11.29			45		10.91			45		11.22			181		10.97			178
Other retail		9.70			40		9.39			29		8.94			26		8.66			24		8.08			22		9.23			119		7.75			78

Total retail		4.01			559		3.98			542		3.95			527		3.91			518		3.82			504		3.96			2,146		3.80			1,952

Total loans and leases		3.58			963		3.52			926		3.48			896		3.46			868		3.34			830		3.51			3,653		3.32			3,211
Loans held for sale		3.29			5		3.35			4		3.41			3		3.70			3		3.44			2		3.40			15		3.47			10
Other loans held for sale		6.24			—		6.41			1		4.00			4		6.64			1		5.93			—		4.55			6		7.22			7

Total interest-earning assets		3.30			1,122		3.25			1,079		3.22			1,046		3.23			1,019		3.15			986		3.25			4,266		3.12			3,854
INTEREST-BEARING LIABILITIES:
Checking with interest		0.21			10		0.20			9		0.16			8		0.14			7		0.11			5		0.18			34		0.11			19
Money market accounts		0.39			39		0.38			35		0.35			31		0.32			28		0.32			29		0.36			133		0.32			115
Regular savings		0.04			—		0.05			2		0.04			1		0.04			1		0.03			1		0.04			4		0.03			2
Term deposits		0.82			27		0.76			25		0.74			23		0.80			24		0.84			25		0.78			99		0.82			101

Total interest-bearing deposits		0.38			76		0.36			71		0.33			63		0.32			60		0.33			60		0.35			270		0.33			237
Federal funds purchased and securities sold under agreements to repurchase²		0.23			—		0.24			1		0.19			—		0.23			1		0.64			3		0.22			2		0.46			16
Other short-term borrowed funds		0.81			7		1.54			10		1.25			12		1.40			11		1.26			16		1.22			40		1.13			67
Long-term borrowed funds		1.94			53		1.89			52		1.87			48		1.75			43		2.44			37		1.86			196		2.95			132

Total borrowed funds		1.57			60		1.72			63		1.60			60		1.58			55		1.74			56		1.62			238		1.56			215

Total interest-bearing liabilities		0.57			136		0.57			134		0.54			123		0.52			115		0.53			116		0.55			508		0.52			452
INTEREST RATE SPREAD		2.73	%				2.68	%				2.68	%				2.71	%				2.62	%				2.70	%				2.60	%
NET INTEREST MARGIN		2.90					2.84					2.84					2.86					2.77					2.86					2.75
Memo Total deposits costs		0.28			76		0.27			71		0.27			63		0.24			60		0.24			60		0.26			270		0.24			237

¹	Our SBO portfolio consists of purchased loans and lines of credit that were originally serviced by others. We now service a portion of this portfolio internally.

²	Balances are net of certain short-term receivables associated with reverse repurchase agreements; interest expense includes the full cost of the repurchase agreements and certain hedging costs.

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING

(dollars in millions, except ratios)


	FOURTH QUARTER 2016												THIRD QUARTER 2016												CHANGE
																									4Q16 from 3Q16
	Consumer Banking			Commercial Banking			Other¹			Consolidated			Consumer Banking			Commercial Banking			Other¹			Consolidated			$/bps			%
Net interest income	$	639		$	347		$	—		$	986		$	621		$	327		($	3	)	$	945		$	41			4	%
Noninterest income		227			122			28			377			229			123			83			435			(58	)		(13	)

Total revenue		866			469			28			1,363			850			450			80			1,380			(17	)		(1	)
Noninterest expense		649			187			11			847			650			181			36			867			(20	)		(2	)

Profit before provision for credit losses		217			282			17			516			200			269			44			513			3			1
Provision for credit losses		74			20			8			102			57			19			10			86			16			19

Income before income tax expense (benefit)		143			262			9			414			143			250			34			427			(13	)		(3	)
Income tax expense (benefit)		51			90			(9	)		132			51			88			(9	)		130			2			2

Net income	$	92		$	172		$	18		$	282		$	92		$	162		$	43		$	297		($	15	)		(5	%)

Average Balances
Total assets	$	58,066		$	48,024		$	41,225		$	147,315		$	56,689		$	47,902		$	39,808		$	144,399		$	2,916			2	%
Total loans and leases²		56,711			47,010			3,370			107,091			55,376			46,611			2,592			104,579			2,512			2
Deposits		73,124			29,410			6,591			109,125			72,141			27,847			6,658			106,646			2,479			2
Interest-earning assets		56,764			47,070			30,924			134,758			55,423			46,666			29,580			131,669			3,089			2
Key Metrics
Net interest margin		4.47	%		2.93	%		NM			2.90	%		4.46	%		2.79	%		NM			2.84	%		6	bps
Efficiency ratio		74.90			39.83			NM			62.18			76.46			40.21			NM			62.88			(70	) bps
Loans-to-deposits ratio (period-end balances)²		77.33			166.25			NM			98.62			77.22			161.45			NM			97.85			77	bps
Loans-to-deposits ratio (average balances)²		77.55			159.84			NM			98.14			76.76			167.38			NM			98.06			8	bps
Return on average total tangible assets		0.63			1.42			NM			0.79			0.64			1.35			NM			0.86			(7	) bps
Return on average tangible common equity³		6.97			12.94			NM			8.43			7.04			12.50			NM			8.58			(15	) bps

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

²	Includes loans and leases held for sale.

³	Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, CONTINUED

(dollars in millions, except ratios)


	FOURTH QUARTER 2016												FOURTH QUARTER 2015												CHANGE
																									4Q16 from 4Q15
	Consumer Banking			Commercial Banking			Other¹			Consolidated			Consumer Banking			Commercial Banking			Other¹			Consolidated			$/bps			%
Net interest income	$	639		$	347		$	—		$	986		$	565		$	301		$	4		$	870		$	116			13	%
Noninterest income		227			122			28			377			226			107			29			362			15			4

Total revenue		866			469			28			1,363			791			408			33			1,232			131			11
Noninterest expense		649			187			11			847			624			180			6			810			37			5

Profit before provision for credit losses		217			282			17			516			167			228			27			422			94			22
Provision for credit losses		74			20			8			102			65			(2	)		28			91			11			12

Income (loss) before income tax expense (benefit)		143			262			9			414			102			230			(1	)		331			83			25
Income tax expense (benefit)		51			90			(9	)		132			35			78			(3	)		110			22			20

Net income	$	92		$	172		$	18		$	282		$	67		$	152		$	2		$	221		$	61			28	%

Average Balances
Total assets	$	58,066		$	48,024		$	41,225		$	147,315		$	54,065		$	43,835		$	38,398		$	136,298		$	11,017			8	%
Total loans and leases²		56,711			47,010			3,370			107,091			52,737			42,642			3,158			98,537			8,554			9
Deposits		73,124			29,410			6,591			109,125			70,939			24,600			5,829			101,368			7,757			8
Interest-earning assets		56,764			47,070			30,924			134,758			52,785			42,777			28,639			124,201			10,557			8
Key Metrics
Net interest margin		4.47	%		2.93	%		NM			2.90	%		4.25	%		2.80	%		NM			2.77	%		13	bps
Efficiency ratio		74.90			39.83			NM			62.18			78.85			44.02			NM			65.76			(358	) bps
Loans-to-deposits ratio (period-end balances)²		77.33			166.25			NM			98.62			74.53			172.59			NM			96.94			168	bps
Loans-to-deposits ratio (average balances)²		77.55			159.84			NM			98.14			74.34			173.34			NM			97.21			93	bps
Return on average total tangible assets		0.63			1.42			NM			0.79			0.49			1.37			NM			0.67			12	bps
Return on average tangible common equity³		6.97			12.94			NM			8.43			5.50			12.57			NM			6.75			168	bps

²	Includes loans and leases held for sale.

³	Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, CONTINUED

(dollars in millions, except ratios)


	FULL YEAR 2016												FULL YEAR 2015												CHANGE
																									2016 from 2015
	Consumer Banking			Commercial Banking			Other¹			Consolidated			Consumer Banking			Commercial Banking			Other¹			Consolidated			$/bps			%
Net interest income	$	2,443		$	1,288		$	27		$	3,758		$	2,198		$	1,162		$	42		$	3,402		$	356			10	%
Noninterest income		883			466			148			1,497			910			415			97			1,422			75			5

Total revenue		3,326			1,754			175			5,255			3,108			1,577			139			4,824			431			9
Noninterest expense		2,547			741			64			3,352			2,456			709			94			3,259			93			3

Profit before provision for credit losses		779			1,013			111			1,903			652			868			45			1,565			338			22
Provision for credit losses		243			47			79			369			252			(13	)		63			302			67			22

Income (loss) before income tax expense (benefit)		536			966			32			1,534			400			881			(18	)		1,263			271			21
Income tax expense (benefit)		191			335			(37	)		489			138			302			(17	)		423			66			16

Net income (loss)	$	345		$	631		$	69		$	1,045		$	262		$	579		($	1	)	$	840		$	205			24	%

Average Balances
Total assets	$	56,388		$	47,159		$	39,636		$	143,183		$	52,848		$	42,800		$	39,422		$	135,070		$	8,113			6	%
Total loans and leases²		55,052			45,903			2,999			103,954			51,484			41,593			3,469			96,546			7,408			8
Deposits		72,003			26,811			6,633			105,447			69,748			23,473			5,933			99,154			6,293			6
Interest-earning assets		55,101			45,978			29,457			130,536			51,525			41,689			29,736			122,950			7,586			6
Key Metrics
Net interest margin		4.43	%		2.80	%		NM			2.86	%		4.27	%		2.79	%		NM			2.75	%		11	bps
Efficiency ratio		76.57			42.26			NM			63.80			79.02			44.94			NM			67.56			(376	) bps
Loans-to-deposits ratio (period-end balances)²		77.33			166.25			NM			98.62			75.53			172.59			NM			96.94			168	bps
Loans-to-deposits ratio (average balances)²		76.46			171.21			NM			98.58			73.81			177.19			NM			97.37			121	bps
Return on average total tangible assets		0.61			1.34			NM			0.76			0.50			1.35			NM			0.65			11	bps
Return on average tangible common equity³		6.68			12.44			NM			7.74			5.53			12.41			NM			6.45			129	bps

²	Includes loans and leases held for sale.

³	Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING

(dollars in millions, except ratios)


	QUARTERLY TRENDS																											FULL YEAR
CONSUMER BANKING																4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016			2015			2015
																$/bps			%			$/bps			%									$/bps			%
Net interest income	$	639		$	621		$	602		$	581		$	565		$	18			3	%	$	74			13	%	$	2,443		$	2,198		$	245			11	%
Noninterest income		227			229			219			208			226			(2	)		(1	)		1			—			883			910			(27	)		(3	)

Total revenue		866			850			821			789			791			16			2			75			9			3,326			3,108			218			7
Noninterest expense		649			650			632			616			624			(1	)		—			25			4			2,547			2,456			91			4

Profit before provision for credit losses		217			200			189			173			167			17			9			50			30			779			652			127			19
Provision for credit losses		74			57			49			63			65			17			30			9			14			243			252			(9	)		(4	)

Income before income tax expense		143			143			140			110			102			—			—			41			40			536			400			136			34
Income tax expense		51			51			50			39			35			—			—			16			46			191			138			53			38

Net income	$	92		$	92		$	90		$	71		$	67		$	—			—	%	$	25			37	%	$	345		$	262		$	83			32	%

Average Balances
Total assets	$	58,066		$	56,689		$	55,660		$	55,116		$	54,065		$	1,377			2	%	$	4,001			7	%	$	56,388		$	52,848		$	3,540			7	%
Total loans and leases¹		56,711			55,376			54,353			53,744			52,737			1,335			2			3,974			8			55,052			51,484			3,568			7
Deposits		73,124			72,141			71,863			70,871			70,939			983			1			2,185			3			72,003			69,748			2,255			3
Interest-earning assets		56,764			55,423			54,400			53,793			52,785			1,341			2			3,979			8			55,101			51,525			3,576			7
Key Metrics
Net interest margin		4.47	%		4.46	%		4.45	%		4.35	%		4.25	%		7	bps					22	bps					4.43	%		4.27	%		16	bps
Efficiency ratio		74.90			76.46			76.68			78.08			78.85			(156	) bps					(395	) bps					76.57			79.02			(245	) bps
Loans-to-deposits ratio (period-end balances)¹		77.33			77.22			76.05			74.74			74.53			11	bps					280	bps					77.33			74.53			280	bps
Loans-to-deposits ratio (average balances)¹		77.55			76.76			75.63			75.83			74.34			79	bps					321	bps					76.46			73.81			265	bps
Return on average total tangible assets		0.63			0.64			0.65			0.52			0.49			(1	) bps					14	bps					0.61			0.50			11	bps
Return on average tangible common equity²		6.97			7.04			7.09			5.59			5.50			(7	) bps					147	bps					6.68			5.53			115	bps

¹	Includes loans and leases held for sale.

²	Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING

(dollars in millions, except ratios)


	QUARTERLY TRENDS																											FULL YEAR
COMMERCIAL BANKING																4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016			2015			2015
																$/bps			%			$/bps			%									$/bps			%
Net interest income	$	347		$	327		$	314		$	300		$	301		$	20			6	%	$	46			15	%	$	1,288		$	1,162		$	126			11	%
Noninterest income		122			123			122			99			107			(1	)		(1	)		15			14			466			415			51			12

Total revenue		469			450			436			399			408			19			4			61			15			1,754			1,577			177			11
Noninterest expense		187			181			186			187			180			6			3			7			4			741			709			32			5

Profit before provision for credit losses		282			269			250			212			228			13			5			54			24			1,013			868			145			17
Provision for credit losses		20			19			(1	)		9			(2	)		1			5			22			NM			47			(13	)		60			NM

Income before income tax expense		262			250			251			203			230			12			5			32			14			966			881			85			10
Income tax expense		90			88			87			70			78			2			2			12			15			335			302			33			11

Net income	$	172		$	162		$	164		$	133		$	152		$	10			6	%	$	20			13	%	$	631		$	579		$	52			9	%

Average Balances
Total assets	$	48,024		$	47,902		$	47,388		$	45,304		$	43,835		$	122			—	%	$	4,189			10	%	$	47,159		$	42,800		$	4,359			10	%
Total loans and leases¹		47,010			46,611			46,073			43,899			42,642			399			1			4,368			10			45,903			41,593			4,310			10
Deposits		29,410			27,847			25,113			24,833			24,600			1,563			6			4,810			20			26,811			23,473			3,338			14
Interest-earning assets		47,070			46,666			46,170			43,987			42,777			404			1			4,293			10			45,978			41,689			4,289			10
Key Metrics
Net interest margin		2.93	%		2.79	%		2.74	%		2.74	%		2.80	%		14	bps					13	bps					2.80	%		2.79	%		1	bps
Efficiency ratio		39.83			40.21			42.88			46.74			44.02			(38	) bps					(419	) bps					42.26			44.94			(268	) bps
Loans-to-deposits ratio (period-end balances)¹		166.25			161.45			172.65			185.13			172.59			480	bps					(634	) bps					166.25			172.59			(634	) bps
Loans-to-deposits ratio (average balances)¹		159.84			167.38			183.46			176.78			173.34			(754	) bps					(1,350	) bps					171.21			177.19			(598	) bps
Return on average total tangible assets		1.42			1.35			1.39			1.18			1.37			7	bps					5	bps					1.34			1.35			(1	) bps
Return on average tangible common equity²		12.94			12.50			13.04			11.19			12.57			44	bps					37	bps					12.44			12.41			3	bps

¹	Includes loans and leases held for sale.

²	Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

SEGMENT FINANCIAL HIGHLIGHTS - OTHER

(dollars in millions)


	QUARTERLY TRENDS																										FULL YEAR
OTHER¹															4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16		4Q15			3Q16						4Q15						2016			2015			2015
															$			%			$			%									$			%
Net interest income	$	—		($	3	)	$	7		$	23	$	4		$	3			100	%	($	4	)		(100	%)	$	27		$	42		($	15	)		(36	%)
Noninterest income		28			83			14			23		29			(55	)		(66	)		(1	)		(3	)		148			97			51			53

Total revenue		28			80			21			46		33			(52	)		(65	)		(5	)		(15	)		175			139			36			26
Noninterest expense		11			36			9			8		6			(25	)		(69	)		5			83			64			94			(30	)		(32	)

Profit before provision for credit losses		17			44			12			38		27			(27	)		(61	)		(10	)		(37	)		111			45			66			147
Provision for credit losses		8			10			42			19		28			(2	)		(20	)		(20	)		(71	)		79			63			16			25

Income (loss) before income tax expense (benefit)		9			34			(30	)		19		(1	)		(25	)		(74	)		10			NM			32			(18	)		50			NM
Income tax expense (benefit)		(9	)		(9	)		(19	)		—		(3	)		—			—			(6	)		(200	)		(37	)		(17	)		(20	)		(118	)

Net income (loss)	$	18		$	43		($	11	)	$	19	$	2		($	25	)		(58	%)	$	16			NM		$	69		($	1	)	$	70			NM

Average Balances
Total assets	$	41,225		$	39,808		$	39,131		$	38,360	$	38,398		$	1,417			4	%	$	2,827			7	%	$	39,636		$	39,422		$	214			1	%
Total loans and leases		3,370			2,592			3,059			2,974		3,158			778			30			212			7			2,999			3,469			(470	)		(14	)
Deposits		6,591			6,658			7,005			6,277		5,829			(67	)		(1	)		762			13			6,633			5,933			700			12
Interest-earning assets		30,924			29,580			28,922			28,385		28,639			1,344			5			2,285			8			29,457			29,736			(279	)		(1	)

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATED

(dollars in millions, except ratios)


	QUARTERLY TRENDS																											FULL YEAR
CONSOLIDATED																4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016			2015			2015
																$/bps			%			$/bps			%									$/bps			%
Net interest income	$	986		$	945		$	923		$	904		$	870		$	41			4	%	$	116			13	%	$	3,758		$	3,402		$	356			10	%
Noninterest income		377			435			355			330			362			(58	)		(13	)		15			4			1,497			1,422			75			5

Total revenue		1,363			1,380			1,278			1,234			1,232			(17	)		(1	)		131			11			5,255			4,824			431			9
Noninterest expense		847			867			827			811			810			(20	)		(2	)		37			5			3,352			3,259			93			3

Profit before provision for credit losses		516			513			451			423			422			3			1			94			22			1,903			1,565			338			22
Provision for credit losses		102			86			90			91			91			16			19			11			12			369			302			67			22

Income before income tax expense		414			427			361			332			331			(13	)		(3	)		83			25			1,534			1,263			271			21
Income tax expense		132			130			118			109			110			2			2			22			20			489			423			66			16

Net income	$	282		$	297		$	243		$	223		$	221		($	15	)		(5	%)	$	61			28	%	$	1,045		$	840		$	205			24	%

Average Balances
Total assets	$	147,315		$	144,399		$	142,179		$	138,780		$	136,298		$	2,916			2	%	$	11,017			8	%	$	143,183		$	135,070		$	8,113			6	%
Total loans and leases¹		107,091			104,579			103,485			100,617			98,537			2,512			2			8,554			9			103,954			96,546			7,408			8
Deposits		109,125			106,646			103,981			101,981			101,368			2,479			2			7,757			8			105,447			99,154			6,293			6
Interest-earning assets		134,758			131,669			129,492			126,165			124,201			3,089			2			10,557			8			130,536			122,950			7,586			6
Key Metrics
Net interest margin		2.90	%		2.84	%		2.84	%		2.86	%		2.77	%		6	bps					13	bps					2.86	%		2.75	%		11	bps
Efficiency ratio		62.18			62.88			64.71			65.66			65.76			(70	) bps					(358	) bps					63.80			67.56			(376	) bps
Loans-to-deposits ratio (period-end balances)¹		98.62			97.85			98.25			99.16			96.94			77	bps					168	bps					98.62			96.94			168	bps
Loans-to-deposits ratio (average balances)¹		98.14			98.06			99.52			98.66			97.21			8	bps					93	bps					98.58			97.37			121	bps
Return on average total tangible assets		0.79			0.86			0.72			0.68			0.67			(7	) bps					12	bps					0.76			0.65			11	bps
Return on average tangible common equity		8.43			8.58			7.30			6.61			6.75			(15	) bps					168	bps					7.74			6.45			129	bps

¹	Includes loans and leases held for sale.

SEGMENT FINANCIAL HIGHLIGHTS

(dollars in millions)


	QUARTERLY TRENDS																							FULL YEAR
												4Q16 Change																2016 Change
	4Q16		3Q16			2Q16		1Q16		4Q15		3Q16						4Q15						2016		2015		2015
												$			%			$			%							$			%
Net interest income:
Consumer Banking	$	639	$	621		$	602	$	581	$	565	$	18			3	%	$	74			13	%	$	2,443	$	2,198	$	245			11	%
Commercial Banking		347		327			314		300		301		20			6			46			15			1,288		1,162		126			11
Other		—		(3	)		7		23		4		3			100			(4	)		(100	)		27		42		(15	)		(36	)

Net interest income	$	986	$	945		$	923	$	904	$	870	$	41			4	%	$	116			13	%	$	3,758	$	3,402	$	356			10	%


Noninterest income:
Consumer Banking	$	227	$	229		$	219	$	208	$	226	($	2	)		(1	%)	$	1			—	%	$	883	$	910	($	27	)		(3	%)
Commercial Banking		122		123			122		99		107		(1	)		(1	)		15			14			466		415		51			12
Other		28		83			14		23		29		(55	)		66			(1	)		(3	)		148		97		51			53

Noninterest income	$	377	$	435		$	355	$	330	$	362	($	58	)		(13	%)	$	15			4	%	$	1,497	$	1,422	$	75			5	%


Total revenue:
Consumer Banking	$	866	$	850		$	821	$	789	$	791	$	16			2	%	$	75			9	%	$	3,326	$	3,108	$	218			7	%
Commercial Banking		469		450			436		399		408		19			4			61			15			1,754		1,577		177			11
Other		28		80			21		46		33		(52	)		(65	)		(5	)		(15	)		175		139		36			26

Total revenue	$	1,363	$	1,380		$	1,278	$	1,234	$	1,232	($	17	)		(1	%)	$	131			11	%	$	5,255	$	4,824	$	431			9	%


Noninterest expense:
Consumer Banking	$	649	$	650		$	632	$	616	$	624	($	1	)		—	%	$	25			4	%	$	2,547	$	2,456	$	91			4	%
Commercial Banking		187		181			186		187		180		6			3			7			4			741		709		32			5
Other		11		36			9		8		6		(25	)		(69	)		5			83			64		94		(30	)		(32	)

Noninterest expense	$	847	$	867		$	827	$	811	$	810	($	20	)		(2	%)	$	37			5	%	$	3,352	$	3,259	$	93			3	%


Profit before provision for credit losses:
Consumer Banking	$	217	$	200		$	189	$	173	$	167	$	17			9	%	$	50			30	%	$	779	$	652	$	127			19	%
Commercial Banking		282		269			250		212		228		13			5			54			24			1,013		868		145			17
Other		17		44			12		38		27		(27	)		(61	)		(10	)		(37	)		111		45		66			147

Profit before provision for credit losses	$	516	$	513		$	451	$	423	$	422	$	3			1	%	$	94			22	%	$	1,903	$	1,565	$	338			22	%

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																										FULL YEAR
															4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16		4Q15			3Q16						4Q15						2016			2015			2015
															$			%			$			%									$			%
Provision for credit losses:
Consumer Banking	$	74		$	57		$	49		$	63	$	65		$	17			30	%	$	9			14	%	$	243		$	252		($	9	)		(4	%)
Commercial Banking		20			19			(1	)		9		(2	)		1			5			22			NM			47			(13	)		60			NM
Other		8			10			42			19		28			(2	)		(20	)		(20	)		(71	)		79			63			16			25

Provision for credit losses	$	102		$	86		$	90		$	91	$	91		$	16			19	%	$	11			12	%	$	369		$	302		$	67			22	%


Income before income tax expense:
Consumer Banking	$	143		$	143		$	140		$	110	$	102		$	—			—	%	$	41			40	%	$	536		$	400		$	136			34	%
Commercial Banking		262			250			251			203		230			12			5			32			14			966			881			85			10
Other		9			34			(30	)		19		(1	)		(25	)		(74	)		10			NM			32			(18	)		50			NM

Income before income tax expense	$	414		$	427		$	361		$	332	$	331		($	13	)		(3	%)	$	83			25	%	$	1,534		$	1,263		$	271			21	%


Income tax expense:
Consumer Banking	$	51		$	51		$	50		$	39	$	35		$	—			—	%	$	16			46	%	$	191		$	138		$	53			38	%
Commercial Banking		90			88			87			70		78			2			2			12			15			335			302			33			11
Other		(9	)		(9	)		(19	)		—		(3	)		—			—			(6	)		(200	)		(37	)		(17	)		(20	)		(118	)

Income tax expense	$	132		$	130		$	118		$	109	$	110		$	2			2	%	$	22			20	%	$	489		$	423		$	66			16	%


Net income:
Consumer Banking	$	92		$	92		$	90		$	71	$	67		$	—			—	%	$	25			37	%	$	345		$	262		$	83			32	%
Commercial Banking		172			162			164			133		152			10			6			20			13			631			579			52			9
Other		18			43			(11	)		19		2			(25	)		(58	)		16			NM			69			(1	)		70			NM

Net income	$	282		$	297		$	243		$	223	$	221		($	15	)		(5	%)	$	61			28	%	$	1,045		$	840		$	205			24	%

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																					FULL YEAR
AVERAGE BALANCES											4Q16 Change															2016 Change
	4Q16		3Q16		2Q16		1Q16		4Q15		3Q16						4Q15					2016		2015		2015
											$			%			$		%							$			%
Total assets:
Consumer Banking	$	58,066	$	56,689	$	55,660	$	55,116	$	54,065	$	1,377			2	%	$	4,001		7	%	$	56,388	$	52,848	$	3,540			7	%
Commercial Banking		48,024		47,902		47,388		45,304		43,835		122			—			4,189		10			47,159		42,800		4,359			10
Other		41,225		39,808		39,131		38,360		38,398		1,417			4			2,827		7			39,636		39,422		214			1

Total Assets	$	147,315	$	144,399	$	142,179	$	138,780	$	136,298	$	2,916			2	%	$	11,017		8	%	$	143,183	$	135,070	$	8,113			6	%


Loans and leases¹:
Consumer Banking	$	56,711	$	55,376	$	54,353	$	53,744	$	52,737	$	1,335			2	%	$	3,974		8	%	$	55,052	$	51,484	$	3,568			7	%
Commercial Banking		47,010		46,611		46,073		43,899		42,642		399			1			4,368		10			45,903		41,593		4,310			10
Other		3,370		2,592		3,059		2,974		3,158		778			30			212		7			2,999		3,469		(470	)		(14	)

Total loans and leases	$	107,091	$	104,579	$	103,485	$	100,617	$	98,537	$	2,512			2	%	$	8,554		9	%	$	103,954	$	96,546	$	7,408			8	%


Deposits:
Consumer Banking	$	73,124	$	72,141	$	71,863	$	70,871	$	70,939	$	983			1	%	$	2,185		3	%	$	72,003	$	69,748	$	2,255			3	%
Commercial Banking		29,410		27,847		25,113		24,833		24,600		1,563			6			4,810		20			26,811		23,473		3,338			14
Other		6,591		6,658		7,005		6,277		5,829		(67	)		(1	)		762		13			6,633		5,933		700			12

Total deposits	$	109,125	$	106,646	$	103,981	$	101,981	$	101,368	$	2,479			2	%	$	7,757		8	%	$	105,447	$	99,154	$	6,293			6	%


Interest-earning assets:
Consumer Banking	$	56,764	$	55,423	$	54,400	$	53,793	$	52,785	$	1,341			2	%	$	3,979		8	%	$	55,101	$	51,525	$	3,576			7	%
Commercial Banking		47,070		46,666		46,170		43,987		42,777		404			1			4,293		10			45,978		41,689		4,289			10
Other		30,924		29,580		28,922		28,385		28,639		1,344			5			2,285		8			29,457		29,736		(279	)		(1	)

Total interest-earning assets	$	134,758	$	131,669	$	129,492	$	126,165	$	124,201	$	3,089			2	%	$	10,557		8	%	$	130,536	$	122,950	$	7,586			6	%

¹	Includes loans and leases held for sale.

SEGMENT FINANCIAL HIGHLIGHTS, CONTINUED


	QUARTERLY TRENDS																					FULL YEAR
KEY METRICS																4Q16 Change												2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16			4Q15			2016			2015			2015
																bps			bps									bps
Net Interest Margin (NIM)
Consumer Banking		4.47	%		4.46	%		4.45	%		4.35	%		4.25	%		1			22			4.43	%		4.27	%		16
Commercial Banking		2.93			2.79			2.74			2.74			2.80			14			13			2.80			2.79			1
Other		NM			NM			NM			NM			NM			—			—			NM			NM			—
NIM		2.90			2.84			2.84			2.84			2.77			6			13			2.86			2.75			11

Efficiency Ratio
Consumer Banking		74.90	%		76.46	%		76.98	%		78.08	%		78.85	%		(156	)		(395	)		76.57	%		79.02	%		(245	)
Commercial Banking		39.83			40.21			42.88			46.74			44.02			(38	)		(419	)		42.26			44.94			(268	)
Other		NM			NM			NM			NM			NM			—			—			NM			NM			—
Efficiency Ratio		62.18			62.88			64.71			65.66			65.76			(70	)		(358	)		63.80			67.56			(376	)

Loans-to-Deposits Ratio (period-end balance) (LDR)¹
Consumer Banking		77.33	%		77.22	%		76.05	%		74.74	%		74.53	%		11			280			77.33	%		74.53	%		280
Commercial Banking		166.25			161.45			172.65			185.13			172.59			480			(634	)		166.25			172.59			(634	)
Other		NM			NM			NM			NM			NM			—			—			NM			NM			—
LDR		98.62			97.85			98.25			99.16			96.94			77			168			98.62			96.94			168

Loans-to-Deposits Ratio (average balance) (LDR)¹
Consumer Banking		77.55	%		76.76	%		75.63	%		75.83	%		74.34	%		79			321			76.46	%		73.81	%		265
Commercial Banking		159.84			167.38			183.46			176.78			173.34			(754	)		(1,350	)		171.21			177.19			(598	)
Other		NM			NM			NM			NM			NM			—			—			NM			NM			—
LDR		98.14			98.06			99.52			98.66			97.21			8			93			98.58			97.37			121

Return on Average Tangible Assets (ROTA)
Consumer Banking		0.63	%		0.64	%		0.65	%		0.52	%		0.49	%		(1	)		14			0.61	%		0.50	%		11
Commercial Banking		1.42			1.35			1.39			1.18			1.37			7			5			1.34			1.35			(1	)
Other		NM			NM			NM			NM			NM			—			—			NM			NM			—
ROTA		0.79			0.86			0.72			0.68			0.67			(7	)		12			0.76			0.65			11

Return on Average Tangible Common Equity (ROTCE)²
Consumer Banking		6.97	%		7.04	%		7.09	%		5.59	%		5.50	%		(7	)		147			6.68	%		5.53	%		115
Commercial Banking		12.94			12.50			13.04			11.19			12.57			44			37			12.44			12.41			3
Other		NM			NM			NM			NM			NM			—			—			NM			NM			—
ROTCE		8.43			8.58			7.30			6.61			6.75			(15	)		168			7.74			6.45			129

¹	Includes loans and leases held for sale.

²	Operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements.

CREDIT-RELATED INFORMATION

(dollars in millions)


	AS OF										DECEMBER 31, 2016 CHANGE
	Dec 31, 2016		Sept 30, 2016		June 30, 2016		Mar 31, 2016		Dec 31, 2015		Sept 30, 2016						Dec 31, 2015
											$			%			$			%
CREDIT EXPOSURE:
Commercial	$	37,274	$	36,449	$	35,927	$	34,671	$	33,264	$	825			2	%	$	4,010			12	%
Commercial real estate		10,624		10,152		9,825		9,406		8,971		472			5			1,653			18
Leases		3,753		3,788		3,805		3,895		3,979		(35	)		(1	)		(226	)		(6	)

Total commercial		51,651		50,389		49,557		47,972		46,214		1,262			3			5,437			12
Residential mortgages		15,115		14,602		13,855		13,345		13,318		513			4			1,797			13
Home equity loans		1,858		2,027		2,177		2,313		2,557		(169	)		(8	)		(699	)		(27	)
Home equity lines of credit		14,100		14,271		14,418		14,526		14,674		(171	)		(1	)		(574	)		(4	)
Home equity loans serviced by others¹		750		796		860		930		986		(46	)		(6	)		(236	)		(24	)
Home equity lines of credit serviced by others¹		219		238		273		339		389		(19	)		(8	)		(170	)		(44	)
Automobile		13,938		14,063		14,075		13,847		13,828		(125	)		(1	)		110			1
Student		6,610		5,997		5,516		5,006		4,359		613			10			2,251			52
Credit card		1,691		1,644		1,613		1,581		1,634		47			3			57			3
Other retail		1,737		1,440		1,207		1,132		1,083		297			21			654			60

Total retail		56,018		55,078		53,994		53,019		52,828		940			2			3,190			6

Total loans and leases		107,669		105,467		103,551		100,991		99,042		2,202			2			8,627			9

Derivative receivable - commercial		621		1,084		1,297		1,057		619		(463	)		(43	)		2			—
Derivative receivable - retail		6		18		15		11		6		(12	)		(67	)		—			—

Total derivative receivable		627		1,102		1,312		1,068		625		(475	)		(43	)		2			—

Total credit-related assets		108,296		106,569		104,863		102,059		99,667		1,727			2			8,629			9

Undrawn commitments to extend credit - commercial		34,005		32,991		32,018		30,352		30,823		1,014			3			3,182			10
Financial standby letters of credit		1,892		1,980		1,946		1,921		2,010		(88	)		(4	)		(118	)		(6	)
Performance letters of credit		40		40		37		41		42		—			—			(2	)		(5	)
Commercial letters of credit		43		55		70		63		87		(12	)		(22	)		(44	)		(51	)
Marketing rights		44		44		46		47		47		—			—			(3	)		(6	)
Risk participation agreements		19		51		64		53		26		(32	)		(63	)		(7	)		(27	)

Total commercial lending-related arrangements		36,043		35,161		34,181		32,477		33,035		882			3			3,008			9
Undrawn commitments to extend credit - retail		26,867		27,134		26,604		26,637		25,701		(267	)		(1	)		1,166			5
Residential mortgage loans sold with recourse		8		9		9		10		10		(1	)		(11	)		(2	)		(20	)

Total retail lending-related arrangements		26,875		27,143		26,613		26,647		25,711		(268	)		(1	)		1,164			5

Total lending-related arrangements		62,918		62,304		60,794		59,124		58,746		614			1			4,172			7

Total credit exposure	$	171,214	$	168,873	$	165,657	$	161,183	$	158,413	$	2,341			1	%	$	12,801			8	%

Memo: Total credit exposure by product category
Commercial exposure	$	88,315	$	86,634	$	85,035	$	81,506	$	79,868	$	1,681			2	%	$	8,447			11	%
Retail exposure		82,899		82,239		80,622		79,677		78,545		660			1			4,354			6

Total credit exposure	$	171,214	$	168,873	$	165,657	$	161,183	$	158,413	$	2,341			1	%	$	12,801			8	%

¹	Our SBO portfolio consists of purchased loans and lines of credit that were originally serviced by others. We now service a portion of this portfolio internally.

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions, except ratios)


	AS OF															DECEMBER 31, 2016 CHANGE
	Dec 31, 2016			Sept 30, 2016			June 30, 2016			Mar 31, 2016			Dec 31, 2015			Sept 30, 2016						Dec 31, 2015
																$/bps			%			$/bps			%
NONPERFORMING ASSETS:
Commercial	$	322		$	334		$	277		$	284		$	71		($	12	)		(4	%)	$	251			NM
Commercial real estate		50			62			70			86			77			(12	)		(19	)		(27	)		(35	)
Leases		15			—			—			—			—			15			100			15			100

Total commercial		387			396			347			370			148			(9	)		(2	)		239			161
Residential mortgages²		144			170			174			174			331			(26	)		(15	)		(187	)		(56	)
Home equity loans		98			105			104			99			135			(7	)		(7	)		(37	)		(27	)
Home equity lines of credit		243			249			251			261			272			(6	)		(2	)		(29	)		(11	)
Home equity loans serviced by others³		32			32			33			37			38			—			—			(6	)		(16	)
Home equity lines of credit serviced by others³		33			42			38			38			32			(9	)		(21	)		1			3
Automobile		50			55			43			42			42			(5	)		(9	)		8			19
Student		38			38			37			40			41			—			—			(3	)		(7	)
Credit card		16			16			14			16			16			—			—			—			—
Other retail		4			4			3			2			5			—			—			(1	)		(20	)

Total retail		658			711			697			709			912			(53	)		(7	)		(254	)		(28	)

Nonperforming loans and leases¹		1,045			1,107			1,044			1,079			1,060			(62	)		(6	)		(15	)		(1	)

Accruing loans past due 90 days or more not included above	$	26		$	24		$	26		$	32		$	—
Accruing loans past due 90 days or more included above		—			—			—			—			9

Commercial	$	—		$	—		$	1		$	1		$	1		$	—			—	%	($	1	)		(100	%)
Retail		49			49			47			47			45			—			—			4			9

Other nonperforming assets		49			49			48			48			46			—			—			3			7

Nonperforming assets	$	1,094		$	1,156		$	1,092		$	1,127		$	1,106		($	62	)		(5	%)	($	12	)		(1	%)

NONPERFORMING ASSETS BY PRODUCT CATEGORY:
Commercial	$	387		$	396		$	348		$	371		$	149		($	9	)		(2	%)	$	238			160	%
Retail		707			760			744			756			957			(53	)		(7	)		(250	)		(26	)

Nonperforming assets	$	1,094		$	1,156		$	1,092		$	1,127		$	1,106		($	62	)		(5	%)	($	12	)		(1	%)


ASSET QUALITY RATIOS
Allowance for loan and lease losses to loans and leases		1.15	%		1.18	%		1.20	%		1.21	%		1.23	%		(3	) bps					(8	) bps
Allowance for loan and lease losses to nonperforming loans and leases¹		118.32			112.03			119.27			113.43			114.64			629	bps					368	bps
Nonperforming loans and leases to loans and leases¹		0.97			1.05			1.01			1.07			1.07			(8	) bps					(10	) bps
Nonperforming assets to total assets¹		0.73			0.79			0.75			0.80			0.80			(6	) bps					(7	) bps

¹	Nonperforming loans and leases included loans and leases on nonaccrual. Nonperforming loans and leases for periods prior to March 31, 2016 included loans and leases on nonaccrual and loans and leases accruing and 90 days or more past due.

Nonperforming balances at December 31, 2016 excluded $18 million of first lien residential mortgage loans that are 100% guaranteed by the Federal Housing Administration and $32 million of guaranteed residential mortgage loans sold to GNMA for which the Company has the right but not the obligation to repurchase.

³	Our SBO portfolio consists of purchased loans and lines of credit that were originally serviced by others. We now service a portion of this portfolio internally.

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																											FULL YEAR
																4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016			2015			2015
																$			%			$			%									$			%
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS
GROSS CHARGE-OFFS:
Commercial	$	19		$	20		$	4		$	13		$	3		($	1	)		(5	%)	$	16			NM		$	56		$	30		$	26			87	%
Commercial real estate		1			10			3			—			1			(9	)		(90	)		—			—			14			6			8			133
Leases		6			3			—			—			—			3			100			6			100			9			—			9			100

Total commercial		26			33			7			13			4			(7	)		(21	)		22			NM			79			36			43			119
Residential mortgages		6			4			5			6			5			2			50			1			20			21			22			(1	)		(5	)
Home equity loans		3			7			3			3			11			(4	)		(57	)		(8	)		(73	)		16			34			(18	)		(53	)
Home equity lines of credit		10			9			11			13			9			1			11			1			11			43			59			(16	)		(27	)
Home equity loans serviced by others¹		9			9			11			9			9			—			—			—			—			38			32			6			19
Home equity lines of credit serviced by others¹		2			3			4			3			4			(1	)		(33	)		(2	)		(50	)		12			14			(2	)		(14	)
Automobile		50			39			32			39			39			11			28			11			28			160			117			43			37
Student		16			11			14			11			14			5			45			2			14			52			51			1			2
Credit card		15			14			15			14			14			1			7			1			7			58			59			(1	)		(2	)
Other retail		15			16			11			15			15			(1	)		(6	)		—			—			57			56			1			2

Total retail		126			112			106			113			120			14			13			6			5			457			444			13			3

Total gross charge-offs	$	152		$	145		$	113		$	126		$	124		$	7			5	%	$	28			23	%	$	536		$	480		$	56			12	%

GROSS RECOVERIES:
Commercial	$	8		$	5		$	5		$	3		$	4		$	3			60	%	$	4			100	%	$	21		$	18		$	3			17	%
Commercial real estate		2			9			—			1			3			(7	)		(78	)		(1	)		(33	)		12			31			(19	)		(61	)
Leases		—			—			—			—			—			—			—			—			—			—			—			—			—

Total commercial		10			14			5			4			7			(4	)		(29	)		3			43			33			49			(16	)		(33	)
Residential mortgages		2			2			2			3			4			—			—			(2	)		(50	)		9			12			(3	)		(25	)
Home equity loans		3			10			3			2			4			(7	)		(70	)		(1	)		(25	)		18			11			7			64
Home equity lines of credit		4			7			4			3			4			(3	)		(43	)		—			—			18			18			—			—
Home equity loans serviced by others¹		4			5			6			4			4			(1	)		(20	)		—			—			19			17			2			12
Home equity lines of credit serviced by others¹		1			2			2			1			2			(1	)		(50	)		(1	)		(50	)		6			8			(2	)		(25	)
Automobile		16			15			17			17			15			1			7			1			7			65			49			16			33
Student		2			3			3			3			3			(1	)		(33	)		(1	)		(33	)		11			12			(1	)		(8	)
Credit card		2			2			2			2			2			—			—			—			—			8			8			—			—
Other retail		4			2			4			4			2			2			100			2			100			14			12			2			17

Total retail		38			48			43			39			40			(10	)		(21	)		(2	)		(5	)		168			147			21			14

Total gross recoveries	$	48		$	62		$	48		$	43		$	47		($	14	)		(23	%)	$	1			2	%	$	201		$	196		$	5			3	%

NET CHARGE-OFFS (RECOVERIES):
Commercial	$	11		$	15		($	1	)	$	10		($	1	)	($	4	)		(27	%)	$	12			NM		$	35		$	12		$	23			192	%
Commercial real estate		(1	)		1			3			(1	)		(2	)		(2	)		(200	)		1			50			2			(25	)		27			108
Leases		6			3			—			—			—			3			100			6			100			9			—			9			100

Total commercial		16			19			2			9			(3	)		(3	)		(16	)		19			NM			46			(13	)		59			NM
Residential mortgages		4			2			3			3			1			2			100			3			NM			12			10			2			20
Home equity loans		—			(3	)		—			1			7			3			100			(7	)		(100	)		(2	)		23			(25	)		(109	)
Home equity lines of credit		6			2			7			10			5			4			200			1			20			25			41			(16	)		(39	)
Home equity loans serviced by others¹		5			4			5			5			5			1			25			—			—			19			15			4			27
Home equity lines of credit serviced by others¹		1			1			2			2			2			—			—			(1	)		(50	)		6			6			—			—
Automobile		34			24			15			22			24			10			42			10			42			95			68			27			40
Student		14			8			11			8			11			6			75			3			27			41			39			2			5
Credit card		13			12			13			12			12			1			8			1			8			50			51			(1	)		(2	)
Other retail		11			14			7			11			13			(3	)		(21	)		(2	)		(15	)		43			44			(1	)		(2	)

Total retail		88			64			63			74			80			24			38			8			10			289			297			(8	)		(3	)

Total net charge-offs (recoveries)	$	104		$	83		$	65		$	83		$	77		$	21			25	%	$	27			35	%	$	335		$	284		$	51			18	%

¹	Our SBO portfolio consists of purchased loans and lines of credit that were originally serviced by others. We now service a portion of this portfolio internally.

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions, except ratios)


	QUARTERLY TRENDS																											FULL YEAR
																4Q16 Change																		2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016			2015			2015
																$/bps			%			$/bps			%									$/bps			%
ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES
Commercial		0.13	%		0.16	%		(0.01	%)		0.12	%		(0.01	%)		(3	) bps					14	bps					0.10	%		0.04	%		6	bps
Commercial real estate		(0.08	)		0.05			0.11			(0.01	)		(0.11	)		(13	) bps					3	bps					0.02			(0.31	)		33	bps
Leases		0.65			0.30			—			—			—			35	bps					65	bps					0.23			—			23	bps
Total commercial		0.13			0.15			0.01			0.08			(0.03	)		(2	) bps					16	bps					0.09			(0.03	)		12	bps
Residential mortgages		0.10			0.05			0.08			0.09			0.05			5	bps					5	bps					0.08			0.09			(1	) bps
Home equity loans		(0.02	)		(0.36	)		0.01			0.06			1.07			34	bps					(109	) bps					(0.07	)		0.76			(83	) bps
Home equity lines of credit		0.19			0.07			0.19			0.26			0.12			12	bps					7	bps					0.18			0.27			(9	) bps
Home equity loans serviced by others¹		2.36			1.88			2.47			2.03			1.81			48	bps					55	bps					2.18			1.26			92	bps
Home equity lines of credit serviced by others¹		2.34			1.84			2.35			2.09			1.99			50	bps					35	bps					2.15			1.37			78	bps
Automobile		0.96			0.69			0.41			0.65			0.71			27	bps					25	bps					0.68			0.51			17	bps
Student		0.86			0.59			0.83			0.64			1.07			27	bps					(21	) bps					0.73			1.19			(46	) bps
Credit card		3.15			2.84			3.19			3.07			2.98			31	bps					17	bps					3.06			3.14			(8	) bps
Other retail		2.61			3.74			3.00			4.18			4.38			(113	) bps					(177	) bps					3.31			4.39			(108	) bps
Total retail		0.63			0.47			0.48			0.55			0.60			16	bps					3	bps					0.53			0.58			(5	) bps
Total loans and leases		0.39	%		0.32	%		0.25	%		0.33	%		0.31	%		7	bps					8	bps					0.32	%		0.30	%		2	bps
Memo: Average loans:
Commercial	$	36,965		$	35,986		$	35,622		$	34,018		$	33,080		$	979			3	%	$	3,885			12	%	$	35,652		$	32,673		$	2,979			9	%
Commercial real estate		10,294			9,905			9,649			9,108			8,855			389			4			1,439			16			9,741			8,231			1,510			18
Leases		3,773			3,813			3,863			3,917			3,884			(40	)		(1	)		(111	)		(3	)		3,841			3,902			(61	)		(2	)

Total commercial		51,032			49,704			49,134			47,043			45,819			1,328			3			5,213			11			49,234			44,806			4,428			10
Residential mortgages		14,896			14,155			13,491			13,465			13,030			741			5			1,866			14			14,005			12,338			1,667			14
Home equity loans		1,934			2,088			2,231			2,471			2,751			(154	)		(7	)		(817	)		(30	)		2,180			3,025			(845	)		(28	)
Home equity lines of credit		14,188			14,314			14,477			14,632			14,659			(126	)		(1	)		(471	)		(3	)		14,402			14,958			(556	)		(4	)
Home equity loans serviced by others¹		774			837			899			958			1,017			(63	)		(8	)		(243	)		(24	)		867			1,117			(250	)		(22	)
Home equity lines of credit serviced by others¹		228			256			299			340			375			(28	)		(11	)		(147	)		(39	)		281			453			(172	)		(38	)
Automobile		13,994			14,053			13,972			13,792			13,824			(59	)		—			170			1			13,953			13,516			437			3
Student		6,215			5,750			5,407			4,852			4,052			465			8			2,163			53			5,558			3,313			2,245			68
Credit card		1,654			1,623			1,600			1,601			1,625			31			2			29			2			1,620			1,621			(1	)		—
Other retail		1,619			1,256			1,167			1,108			1,047			363			29			572			55			1,288			1,003			285			28

Total retail		55,502			54,332			53,543			53,219			52,380			1,170			2			3,122			6			54,154			51,344			2,810			5

Total loans and leases	$	106,534		$	104,036		$	102,677		$	100,262		$	98,199		$	2,498			2	%	$	8,335			8	%	$	103,388		$	96,150		$	7,238			8	%

¹	Our SBO portfolio consists of purchased loans and lines of credit that were originally serviced by others. We now service a portion of this portfolio internally.

CREDIT-RELATED INFORMATION, CONTINUED

(dollars in millions)


	QUARTERLY TRENDS																								FULL YEAR
													4Q16 Change																	2016 Change
	4Q16		3Q16			2Q16		1Q16		4Q15			3Q16						4Q15						2016		2015			2015
													$			%			$			%								$			%
SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES
Allowance for loan and lease losses - beginning	$	1,240	$	1,246		$	1,224	$	1,216	$	1,201		($	6	)		—	%	$	39			3	%	$	1,216	$	1,195		$	21			2	%
Charge-offs:
Commercial		26		33			7		13		4			(7	)		(21	)		22			NM			79		36			43			119
Retail		126		112			106		113		120			14			13			6			5			457		444			13			3

Total charge-offs		152		145			113		126		124			7			5			28			23			536		480			56			12
Recoveries:
Commercial		10		14			5		4		7			(4	)		(29	)		3			43			33		49			(16	)		(33	)
Retail		38		48			43		39		40			(10	)		(21	)		(2	)		(5	)		168		147			21			14

Total recoveries		48		62			48		43		47			(14	)		(23	)		1			2			201		196			5			3

Net charge-offs		104		83			65		83		77			21			25			27			35			335		284			51			18
Provision for loan and lease losses:
Commercial		24		(2	)		45		46		18			26			NM			6			33			113		39			74			190
Retail		76		79			42		45		74			(3	)		(4	)		2			3			242		266			(24	)		(9	)

Total provision for loan and lease losses		100		77			87		91		92			23			30			8			9			355		305			50			16

Allowance for loan and lease losses - ending	$	1,236	$	1,240		$	1,246	$	1,224	$	1,216		($	4	)		—	%	$	20			2	%	$	1,236	$	1,216		$	20			2	%

Reserve for unfunded lending commitments - beginning	$	70	$	61		$	58	$	58	$	59		$	9			15	%	$	11			19	%	$	58	$	61		($	3	)		(5	%)
Provision for unfunded lending commitments		2		9			3		—		(1	)		(7	)		(78	)		3			NM			14		(3	)		17			NM

Reserve for unfunded lending commitments - ending	$	72	$	70		$	61	$	58	$	58		$	2			3	%	$	14			24	%	$	72	$	58		$	14			24	%

Total allowance for credit losses - ending	$	1,308	$	1,310		$	1,307	$	1,282	$	1,274		($	2	)		—	%	$	34			3	%	$	1,308	$	1,274		$	34			3	%


	AS OF										DECEMBER 31, 2016 CHANGE
	Dec 31, 2016		Sept 30, 2016		June 30, 2016		Mar 31, 2016		Dec 31, 2015		Sept 30, 2016						Dec 31, 2015
ALLOWANCE COMPONENTS											$			%			$			%
ALLOWANCE FOR CREDIT LOSSES
Individually evaluated	$	63	$	55	$	52	$	42	$	36	$	8			15	%	$	27			75	%
Formula-based evaluation		672		670		685		649		618		2			—			54			9

Total commercial		735		725		737		691		654		10			1			81			12
Individually evaluated		43		78		79		82		101		(35	)		(45	)		(58	)		(57	)
Formula-based evaluation		530		507		491		509		519		23			5			11			2

Total retail		573		585		570		591		620		(12	)		(2	)		(47	)		(8	)

Total allowance for credit losses	$	1,308	$	1,310	$	1,307	$	1,282	$	1,274	($	2	)		—	%	$	34			3	%

CAPITAL AND RATIOS

(dollars in millions, except ratios)


	AS OF																											FULL YEAR
																DECEMBER 31, 2016 CHANGE																2016 Change
	Dec 31, 2016			Sept 30, 2016			June 30, 2016			Mar 31, 2016			Dec 31, 2015			Sept 30, 2016						Dec 31, 2015						2016		2015		2015
																$			%			$			%							$			%
CAPITAL RATIOS AND COMPONENTS (preliminary)¹
CET1 capital	$	13,822		$	13,763		$	13,768		$	13,570		$	13,389		$	59			—	%	$	433			3	%
Tier 1 capital		14,069			14,010			14,015			13,817			13,636			59			—			433			3
Total capital		17,347			17,290			17,823			17,587			17,505			57			—			(158	)		(1	)
Risk-weighted assets		123,857			121,612			119,492			116,591			114,084			2,245			2			9,773			9
Adjusted average assets²		141,677			138,425			136,301			132,951			130,455			3,252			2			11,222			9
CET1 capital ratio		11.2	%		11.3	%		11.5	%		11.6	%		11.7	%
Tier 1 capital ratio		11.4			11.5			11.7			11.9			12.0
Total capital ratio		14.0			14.2			14.9			15.1			15.3
Tier 1 leverage ratio		9.9			10.1			10.3			10.4			10.5
Pro forma Basel III fully phased-in common equity tier 1 capital ratio		11.1			11.3			11.5			11.6			11.7
TANGIBLE COMMON EQUITY (period-end):
Common stockholders’ equity	$	19,499		$	19,934		$	19,979		$	19,718		$	19,399		($	435	)		(2	%)	$	100			1	%	$	19,499	$	19,399	$	100			1	%
Less: Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876		6,876		—			—
Less: Other intangible assets		1			1			2			3			3			—			—			(2	)		(67	)		1		3		(2	)		(67	)
Add: Deferred tax liabilities³		532			519			507			494			480			13			3			52			11			532		480		52			11

Total tangible common equity	$	13,154		$	13,576		$	13,608		$	13,333		$	13,000		($	422	)		(3	%)	$	154			1	%	$	13,154	$	13,000	$	154			1	%

TANGIBLE COMMON EQUITY (average):
Common stockholders’ equity	$	19,645		$	19,810		$	19,768		$	19,567		$	19,359		($	165	)		(1	%)	$	286			1	%	$	19,698	$	19,354	$	344			2	%
Less: Goodwill		6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876		6,876		—			—
Less: Other intangible assets		1			1			2			3			3			—			—			(2	)		(67	)		2		4		(2	)		(50	)
Add: Deferred tax liabilities³		523			509			496			481			468			14			3			55			12			502		445		57			13

Total tangible common equity	$	13,291		$	13,442		$	13,386		$	13,169		$	12,948		($	151	)		(1	%)	$	343			3	%	$	13,322	$	12,919	$	403			3	%

INTANGIBLE ASSETS (period-end):
Goodwill	$	6,876		$	6,876		$	6,876		$	6,876		$	6,876		$	—			—	%	$	—			—	%	$	6,876	$	6,876	$	—			—	%
Other intangible assets		1			1			2			3			3			—			—			(2	)		(67	)		1		3		(2	)		(67	)

Total intangible assets	$	6,877		$	6,877		$	6,878		$	6,879		$	6,879		$	—			—	%	($	2	)		—	%	$	6,877	$	6,879	($	2	)		—	%

¹	Basel III transitional rules for institutions applying the standardized approach to calculating risk-weighted assets became effective January 1, 2015. The capital ratios and associated components are prepared using the Basel III standardized transitional approach.

Adjusted average assets include quarterly average assets, less deductions for disallowed goodwill and other intangibles assets, net of deferred tax liabilities related to tax deductible goodwill, and the accumulated other comprehensive income impact related to the adoption of post-retirement benefit plan guidance under GAAP.

³	Deferred tax liabilities relate to tax-deductible goodwill, which is netted against goodwill when calculating tangible common equity.

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

Adjusted - excluding restructuring charges, special items and/or notable items

(dollars in millions, except per-share data)

Key Performance Metrics:

Our management team uses certain key performance metrics (KPMs) to gauge our performance and progress over time in achieving our strategic and operational goals and also in comparing our performance against our peers. In connection with our path to becoming an independent public company, we established the following financial targets, in addition to others, as KPMs. These KPMs are utilized by our management in measuring our progress against financial goals and as a tool in helping assess performance for compensation purposes. These KPMs can be largely found in our Registration Statements on Form S-1 and our periodic reports which are filed with the Securities and Exchange Commission, and are supplemented from time to time with additional information in connection with our quarterly earnings releases.

Our key performance metrics include:

Return on average tangible common equity (ROTCE);

Return on average total tangible assets (ROTA);

Efficiency ratio;

Operating leverage; and

Common equity tier 1 capital ratio (Basel III fully phased-in basis).

In establishing goals for these KPMs, we determined that they would be measured on a management-reporting basis, or an operating basis, which we refer to externally as Adjusted results. We believe that these Adjusted results, which exclude restructuring charges, special items and/or notable items, as applicable, provide the best representation of our underlying financial progress toward these goals as they exclude items that our management does not consider indicative of our on-going financial performance. We have consistently shown these metrics on this basis to investors since our initial public offering in September of 2014. Adjusted KPMs are considered non-GAAP financial measures.

Non-GAAP Financial Measures:

This document contains non-GAAP financial measures. The following tables present reconciliations of our non-GAAP measures. These reconciliations exclude restructuring charges, special items and/or notable items, which are included, where applicable, in the financial results presented in accordance with GAAP. Restructuring charges and special items include expenses related to our efforts to improve processes and enhance efficiencies, as well as rebranding, separation from RBS and regulatory expenses. Notable items include certain revenue or expense items that may occur in a reporting period which management does not consider indicative of on-going financial performance.

The non-GAAP measures presented in the following tables include reconciliations to the most directly comparable GAAP measures and are: “noninterest income”, “total revenue”, “ noninterest expense”, “pre-provision profit”, “income before income tax expense”, “income tax expense”, “net income”, “net income available to common stockholders”, “other income”, “salaries and employee benefits”, “outside services”, “occupancy”, “equipment expense”, “amortization of software expense”, “other operating expense”, “net income per average common share”, “return on average common equity” and “return on average total assets”.

We believe these non-GAAP measures provide useful information to investors because these are among the measures used by our management team to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe restructuring charges, special items and/or notable items in any period do not reflect the operational performance of the business in that period and, accordingly, it is useful to consider these line items with and without restructuring charges, special items and/or notable items. We believe this presentation also increases comparability of period-to-period results.

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

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (CONTINUED)

Adjusted - excluding restructuring charges, special items and/or notable items

(dollars in millions, except per-share data)


		QUARTERLY TRENDS																						FULL YEAR
													4Q16 Change																	2016 Change
		4Q16		3Q16			2Q16		1Q16		4Q15		3Q16						4Q15					2016			2015			2015
													$			%			$		%									$			%
Noninterest income, adjusted:
Noninterest income (GAAP)		$	377	$	435		$	355	$	330	$	362	($	58	)		(13	%)	$	15		4	%	$	1,497		$	1,422		$	75			5	%
Less: Special items			—		—			—		—		—		—			—			—		—			—			—			—			—
Less: Notable items			—		67			—		—		—		(67	)		(100	)		—		—			67			—			67			100

Noninterest income, adjusted (non-GAAP)		$	377	$	368		$	355	$	330	$	362	$	9			2	%	$	15		4	%	$	1,430		$	1,422		$	8			1	%

Total revenue, adjusted:
Total revenue (GAAP)	A	$	1,363	$	1,380		$	1,278	$	1,234	$	1,232	($	17	)		(1	%)	$	131		11	%	$	5,255		$	4,824		$	431			9	%
Less: Special items			—		—			—		—		—		—			—			—		—			—			—			—			—
Less: Notable items			—		67			—		—		—		(67	)		(100	)		—		—			67			—			67			100

Total revenue, adjusted (non-GAAP)	B	$	1,363	$	1,313		$	1,278	$	1,234	$	1,232	$	50			4	%	$	131		11	%	$	5,188		$	4,824		$	364			8	%

Noninterest expense, adjusted:
Noninterest expense (GAAP)	C	$	847	$	867		$	827	$	811	$	810	($	20	)		(2	%)	$	37		5	%	$	3,352		$	3,259		$	93			3	%
Less: Restructuring charges and special items			—		—			—		—		—		—			—			—		—			—			50			(50	)		(100	)
Less: Notable items			—		36			—		—		—		(36	)		(100	)		—		—			36			—			36			100

Noninterest expense, adjusted (non-GAAP)	D	$	847	$	831		$	827	$	811	$	810	$	16			2	%	$	37		5	%	$	3,316		$	3,209		$	107			3	%

Pre-provision profit, adjusted:
Total revenue, adjusted (non-GAAP)	B	$	1,363	$	1,313		$	1,278	$	1,234	$	1,232	$	50			4	%	$	131		11	%	$	5,188		$	4,824		$	364			8	%
Less: Noninterest expense, adjusted (non-GAAP)	D		847		831			827		811		810		16			2			37		5			3,316			3,209			107			3

Pre-provision profit, adjusted (non-GAAP)		$	516	$	482		$	451	$	423	$	422	$	34			7	%	$	94		22	%	$	1,872		$	1,615		$	257			16	%

Income before income tax expense, adjusted:
Income before income tax expense (GAAP)		$	414	$	427		$	361	$	332	$	331	($	13	)		(3	%)	$	83		25	%	$	1,534		$	1,263		$	271			21	%
Less: Income before income tax expense (benefit) related to restructuring charges and special items			—		—			—		—		—		—			—			—		—			—			(50	)		50			100
Less: Income before income tax expense (benefit) related to notable items			—		31			—		—		—		(31	)		(100	)		—		—			31			—			31			100

Income before income tax expense, adjusted (non-GAAP)		$	414	$	396		$	361	$	332	$	331	$	18			5	%	$	83		25	%	$	1,503		$	1,313		$	190			14	%

Income tax expense, adjusted:
Income tax expense (GAAP)		$	132	$	130		$	118	$	109	$	110	$	2			2	%	$	22		20	%	$	489		$	423		$	66			16	%
Less: Income tax expense (benefit) related to restructuring charges and special items			—		—			—		—		—		—			—			—		—			—			(19	)		19			100
Less: Income tax expense (benefit) related to notable items			—		12			—		—		—		(12	)		(100	)		—		—			12			—			12			100

Income tax expense, adjusted (non-GAAP)		$	132	$	118		$	118	$	109	$	110	$	14			12	%	$	22		20	%	$	477		$	442		$	35			8	%

Net income, adjusted:
Net income (GAAP)	E	$	282	$	297		$	243	$	223	$	221	($	15	)		(5	%)	$	61		28	%	$	1,045		$	840		$	205			24	%
Add: Restructuring charges and special items, net of income tax expense (benefit)			—		—			—		—		—		—			—			—		—			—			31			(31	)		(100	)
Add: Notable items, net of income tax expense (benefit)			—		(19	)		—		—		—		19			100			—		—			(19	)		—			(19	)		(100	)

Net income, adjusted (non-GAAP)	F	$	282	$	278		$	243	$	223	$	221	$	4			1	%	$	61		28	%	$	1,026		$	871		$	155			18	%

Net income available to common stockholders, adjusted:
Net income available to common stockholders (GAAP)	G	$	282	$	290		$	243	$	216	$	221	($	8	)		(3	%)	$	61		28	%	$	1,031		$	833		$	198			24	%
Add: Restructuring charges and special items, net of income tax expense (benefit)			—		—			—		—		—		—			—			—		—			—			31			(31	)		(100	)
Add: Notable items, net of income tax expense (benefit)			—		(19	)		—		—		—		19			100			—		—			(19	)		—			(19	)		(100	)

Net income available to common stockholders, adjusted (non-GAAP)	H	$	282	$	271		$	243	$	216	$	221	$	11			4	%	$	61		28	%	$	1,012		$	864		$	148			17	%

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (CONTINUED)

Adjusted - excluding restructuring charges, special items and/or notable items

(dollars in millions, except per-share data)


		QUARTERLY TRENDS																											FULL YEAR
																	4Q16 Change																		2016 Change
		4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016			2015			2015
																	$/bps			%			$/bps			%									$/bps			%
Operating leverage:
Total revenue (GAAP)	A	$	1,363		$	1,380		$	1,278		$	1,234		$	1,232		($	17	)		(1.23	%)	$	131			10.63	%	$	5,255		$	4,824		$	431			8.93	%
Less: Noninterest expense (GAAP)	C		847			867			827			811			810			(20	)		(2.31	)		37			4.57			3,352			3,259			93			2.85

Operating leverage																					1.08	%					6.06	%											6.08	%

Operating leverage, adjusted:
Total revenue, adjusted (non-GAAP)	B	$	1,363		$	1,313		$	1,278		$	1,234		$	1,232		$	50			3.81	%	$	131			10.63	%	$	5,188		$	4,824		$	364			7.55	%
Less: Noninterest expense, adjusted (non-GAAP)	D		847			831			827			811			810			16			1.93			37			4.57			3,316			3,209			107			3.33

Operating leverage, adjusted (non-GAAP)																					1.88	%					6.06	%											4.22	%

Efficiency ratio and efficiency ratio, adjusted:
Efficiency ratio	C/A		62.18	%		62.88	%		64.71	%		65.66	%		65.76	%		(70	) bps					(358	) bps					63.80	%		67.56	%		(376	) bps
Efficiency ratio, adjusted (non-GAAP)	D/B		62.18			63.31			64.71			65.66			65.76			(113	) bps					(358	) bps					63.92			66.52			(260	) bps
Return on average common equity and return on average common equity, adjusted:
Average common equity (GAAP)	I	$	19,645		$	19,810		$	19,768		$	19,567		$	19,359		($	165	)		(1	%)	$	286			1	%	$	19,698		$	19,354		$	344			2	%
Return on average common equity	G/I		5.70	%		5.82	%		4.94	%		4.45	%		4.51	%		(12	) bps					119	bps					5.23	%		4.30	%		93	bps
Return on average common equity, adjusted (non-GAAP)	H/I		5.70			5.44			4.94			4.45			4.51			26	bps					119	bps					5.14			4.46			68	bps
Return on average tangible common equity and return on average tangible common equity, adjusted:
Average common equity (GAAP)	I	$	19,645		$	19,810		$	19,768		$	19,567		$	19,359		($	165	)		(1	%)	$	286			1	%	$	19,698		$	19,354		$	344			2	%
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			6,876			—			—
Less: Average other intangibles (GAAP)			1			1			2			3			3			—			—			(2	)		(67	)		2			4			(2	)		(50	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			523			509			496			481			468			14			3			55			12			502			445			57			13

Average tangible common equity	J	$	13,291		$	13,442		$	13,386		$	13,169		$	12,948		($	151	)		(1	%)	$	343			3	%	$	13,322		$	12,919		$	403			3	%

Return on average tangible common equity	G/J		8.43	%		8.58	%		7.30	%		6.61	%		6.75	%		(15	) bps					168	bps					7.74	%		6.45	%		129	bps
Return on average tangible common equity, adjusted (non-GAAP)	H/J		8.43			8.02			7.30			6.61			6.75			41	bps					168	bps					7.60			6.69			91	bps
Return on average total assets and return on average total assets, adjusted:
Average total assets (GAAP)	K	$	147,315		$	144,399		$	142,179		$	138,780		$	136,298		$	2,916			2	%	$	11,017			8	%	$	143,183		$	135,070		$	8,113			6	%
Return on average total assets	E/K		0.76	%		0.82	%		0.69	%		0.65	%		0.64	%		(6	) bps					12	bps					0.73	%		0.62	%		11	bps
Return on average total assets, adjusted (non-GAAP)	F/K		0.76			0.77			0.69			0.65			0.64			(1	) bps					12	bps					0.72			0.64			8	bps
Return on average total tangible assets and return on average total tangible assets, adjusted:
Average total assets (GAAP)	K	$	147,315		$	144,399		$	142,179		$	138,780		$	136,298		$	2,916			2	%	$	11,017			8	%	$	143,183		$	135,070		$	8,113			6	%
Less: Average goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876			6,876			—			—
Less: Average other intangibles (GAAP)			1			1			2			3			3			—			—			(2	)		(67	)		2			4			(2	)		(50	)
Add: Average deferred tax liabilities related to goodwill (GAAP)			523			509			496			481			468			14			3			55			12			502			445			57			13

Average tangible assets	L	$	140,961		$	138,031		$	135,797		$	132,382		$	129,887		$	2,930			2	%	$	11,074			9	%	$	136,807		$	128,635		$	8,172			6	%

Return on average total tangible assets	E/L		0.79	%		0.86	%		0.72	%		0.68	%		0.67	%		(7	) bps					12	bps					0.76	%		0.65	%		11	bps
Return on average total tangible assets, adjusted (non-GAAP)	F/L		0.79			0.80			0.72			0.68			0.67			(1	) bps					12	bps					0.75			0.68			7	bps

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (CONTINUED)

Adjusted - excluding restructuring charges, special items and/or notable items

(dollars in millions, except per-share data)


		QUARTERLY TRENDS																											FULL YEAR
																	4Q16 Change																2016 Change
		4Q16			3Q16			2Q16			1Q16			4Q15			3Q16						4Q15						2016		2015		2015
																	$/bps			%			$/bps			%							$/bps			%
Tangible book value per common share:
Common shares - at end of period (GAAP)	M		511,954,871			518,148,345			529,094,976			528,933,727			527,774,428			(6,193,474	)		(1	%)		(15,819,557	)		(3	%)		511,954,871		527,774,428		(15,819,557	)		(3	%)
Common stockholders’ equity (GAAP)		$	19,499		$	19,934		$	19,979		$	19,718		$	19,399		($	435	)		(2	)	$	100			1		$	19,499	$	19,399	$	100			1
Less: Goodwill (GAAP)			6,876			6,876			6,876			6,876			6,876			—			—			—			—			6,876		6,876		—			—
Less: Other intangible assets (GAAP)			1			1			2			3			3			—			—			(2	)		(67	)		1		3		(2	)		(67	)
Add: Deferred tax liabilities related to goodwill (GAAP)			532			519			507			494			480			13			3			52			11			532		480		52			11

Tangible common equity	N	$	13,154		$	13,576		$	13,608		$	13,333		$	13,000		($	422	)		(3	%)	$	154			1	%	$	13,154	$	13,000	$	154			1	%

Tangible book value per common share	N/M	$	25.69		$	26.20		$	25.72		$	25.21		$	24.63		($	0.51	)		(2	%)	$	0.00			4	%	$	25.69	$	24.63	$	1.06			4	%
Net income per average common share - basic and diluted, adjusted:
Average common shares outstanding - basic (GAAP)	O		512,015,920			519,458,976			528,968,330			528,070,648			527,648,630			(7,443,056	)		(1	%)		(15,632,710	)		(3	%)		522,093,545		535,599,731		(13,506,186	)		(3	%)
Average common shares outstanding - diluted (GAAP)	P		513,897,085			521,122,466			530,365,203			530,446,188			530,275,673			(7,225,381	)		(1	)		(16,378,588	)		(3	)		523,930,718		538,220,898		(14,290,180	)		(3	)
Net income available to common stockholders (GAAP)	G	$	282		$	290		$	243		$	216		$	221		($	8	)		(3	)	$	61			28		$	1,031	$	833	$	198			24
Net income per average common share - basic (GAAP)	G/O		0.55			0.56			0.46			0.41			0.42			(0.01	)		(2	)		0.13			31			1.97		1.55		0.42			27
Net income per average common share - diluted (GAAP)	G/P		0.55			0.56			0.46			0.41			0.42			(0.01	)		(2	)		0.13			31			1.97		1.55		0.42			27
Net income available to common stockholders, adjusted (non-GAAP)	H		282			271			243			216			221			11			4			61			28			1,012		864		148			17
Net income per average common share - basic, adjusted (non-GAAP)	H/O		0.55			0.52			0.46			0.41			0.42			0.03			6			0.13			31			1.94		1.61		0.33			20
Net income per average common share - diluted, adjusted (non-GAAP)	H/P		0.55			0.52			0.46			0.41			0.42			0.03			6			0.13			31			1.93		1.61		0.32			20
Pro forma Basel III fully phased-in common equity tier 1 capital ratio¹:
Common equity tier 1 (regulatory)		$	13,822		$	13,763		$	13,768		$	13,570		$	13,389
Less: Change in DTA and other threshold deductions (GAAP)			—			—			1			1			2

Pro forma Basel III fully phased-in common equity tier 1	Q	$	13,822		$	13,763		$	13,767		$	13,569		$	13,387


Risk-weighted assets (regulatory general risk weight approach)		$	123,857		$	121,612		$	119,492		$	116,591		$	114,084
Add: Net change in credit and other risk-weighted assets (regulatory)			244			228			228			232			244

Pro forma Basel III standardized approach risk-weighted assets	R	$	124,101		$	121,840		$	119,720		$	116,823		$	114,328

Pro forma Basel III fully phased-in common equity tier 1 capital ratio¹	Q/R		11.1	%		11.3	%		11.5	%		11.6	%		11.7	%

¹	Basel III ratios assume certain definitions impacting qualifying Basel III capital, which otherwise will phase in through 2019, are fully phased-in. Ratios also reflect the required US Standardized methodology for calculating RWAs, effective January 1, 2015.

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (CONTINUED)

Adjusted - excluding restructuring charges, special items and/or notable items

(dollars in millions, except per-share data)


	QUARTERLY TRENDS																							FULL YEAR
												4Q16 Change																2016 Change
	4Q16		3Q16		2Q16		1Q16		4Q15			3Q16						4Q15						2016		2015		2015
												$			%			$			%							$			%
Other income, adjusted
Other income (GAAP)	$	28	$	90	$	18	$	16	$	23		($	62	)		(69	%)	$	5			22	%	$	152	$	94	$	58			62	%
Less: Special items		—		—		—		—		—			—			—			—			—			—		—		—			—
Less: Notable items		—		67		—		—		—			(67	)		(100	)		—			—			67		—		67			100

Other income, adjusted (non-GAAP)	$	28	$	23	$	18	$	16	$	23		$	5			22	%	$	5			22	%	$	85	$	94	($	9	)		(10	%)

Salaries and employee benefits, adjusted:
Salaries and employee benefits (GAAP)	$	420	$	432	$	432	$	425	$	402		($	12	)		(3	%)	$	18			4	%	$	1,709	$	1,636	$	73			4	%
Less: Restructuring charges and special items		—		—		—		—		(2	)		—			—			2			100			—		3		(3	)		(100	)
Less: Notable items		—		11		—		—		—			(11	)		(100	)		—			—			11		—		11			100

Salaries and employee benefits, adjusted (non-GAAP)	$	420	$	421	$	432	$	425	$	404		($	1	)		—	%	$	16			4	%	$	1,698	$	1,633	$	65			4	%

Outside services, adjusted:
Outside services (GAAP)	$	98	$	102	$	86	$	91	$	104		($	4	)		(4	%)	($	6	)		(6	%)	$	377	$	371	$	6			2	%
Less: Restructuring charges and special items		—		—		—		—		2			—			—			(2	)		(100	)		—		26		(26	)		(100	)
Less: Notable items		—		8		—		—		—			(8	)		(100	)		—			—			8		—		8			100

Outside services, adjusted (non-GAAP)	$	98	$	94	$	86	$	91	$	102		$	4			4	%	($	4	)		(4	%)	$	369	$	345	$	24			7	%

Occupancy, adjusted:
Occupancy (GAAP)	$	77	$	78	$	76	$	76	$	74		($	1	)		(1	%)	$	3			4	%	$	307	$	319	($	12	)		(4	%)
Less: Restructuring charges and special items		—		—		—		—		—			—			—			—			—			—		17		(17	)		(100	)
Less: Notable items		—		—		—		—		—			—			—			—			—			—		—		—			—

Occupancy, adjusted (non-GAAP)	$	77	$	78	$	76	$	76	$	74		($	1	)		(1	%)	$	3			4	%	$	307	$	302	$	5			2	%

Equipment expense, adjusted:
Equipment expense (GAAP)	$	69	$	65	$	64	$	65	$	67		$	4			6	%	$	2			3	%	$	263	$	257	$	6			2	%
Less: Restructuring charges and special items		—		—		—		—		—			—			—			—			—			—		1		(1	)		(100	)
Less: Notable items		—		—		—		—		—			—			—			—			—			—		—		—			—

Equipment expense, adjusted (non-GAAP)	$	69	$	65	$	64	$	65	$	67		$	4			6	%	$	2			3	%	$	263	$	256	$	7			3	%

Amortization of software, adjusted:
Amortization of software (GAAP)	$	44	$	46	$	41	$	39	$	38		($	2	)		(4	%)	$	6			16	%	$	170	$	146	$	24			16	%
Less: Restructuring charges and special items		—		—		—		—		—			—			—			—			—			—		—		—			—
Less: Notable items		—		3		—		—		—			(3	)		(100	)		—			—			3		—		3			100

Amortization of software, adjusted (non-GAAP)	$	44	$	43	$	41	$	39	$	38		$	1			2	%	$	6			16	%	$	167	$	146	$	21			14	%

Other operating expense, adjusted:
Other operating expense (GAAP)	$	139	$	144	$	128	$	115	$	125		($	5	)		(3	%)	$	14			11	%	$	526	$	530	($	4	)		(1	%)
Less: Restructuring charges and special items		—		—		—		—		—			—			—			—			—			—		3		(3	)		(100	)
Less: Notable items		—		14		—		—		—			(14	)		(100	)		—			—			14		—		14			100

Other operating expense, adjusted (non-GAAP)	$	139	$	130	$	128	$	115	$	125		$	9			7	%	$	14			11	%	$	512	$	527	($	15	)		(3	%)

Restructuring charges, special expense items and notable expense items include:
Restructuring charges	$	—	$	—	$	—	$	—	$	—		$	—			—	%	$	—			—	%	$	—	$	26	($	26	)		(100	)%
Special items		—		—		—		—		—			—			—			—			—			—		24		(24	)		(100	)
Notable items		—		36		—		—		—			(36	)		(100	)		—			—			36		—		36			100

Restructuring charges, special expense items and notable expense items	$	—	$	36	$	—	$	—	$	—		($	36	)		(100	%)	$	—			—	%	$	36	$	50	($	14	)		(28	%)

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS

(dollars in millions)


		THREE MONTHS ENDED DEC 31,											THREE MONTHS ENDED SEPT 30,												THREE MONTHS ENDED JUNE 30,
		2016											2016												2016
		Consumer Banking			Commercial Banking			Other		Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income available to common stockholders:
Net income (loss) (GAAP)	A	$	92		$	172		$	18	$	282		$	92		$	162		$	43		$	297		$	90		$	164		($	11	)	$	243
Less: Preferred stock dividends			—			—			—		—			—			—			7			7			—			—			—			—

Net income available to common stockholders	B	$	92		$	172		$	18	$	282		$	92		$	162		$	36		$	290		$	90		$	164		($	11	)	$	243

Return on average tangible common equity:
Average common equity (GAAP)		$	5,275		$	5,278		$	9,092	$	19,645		$	5,190		$	5,172		$	9,448		$	19,810		$	5,110		$	5,040		$	9,618		$	19,768
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876			6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			1		1			—			—			1			1			—			—			2			2
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			523		523			—			—			509			509			—			—			496			496

Average tangible common equity	C	$	5,275		$	5,278		$	2,738	$	13,291		$	5,190		$	5,172		$	3,080		$	13,442		$	5,110		$	5,040		$	3,236		$	13,386

Return on average tangible common equity	B/C		6.97	%		12.94	%		NM		8.43	%		7.04	%		12.50	%		NM			8.58	%		7.09	%		13.04	%		NM			7.30	%
Return on average total tangible assets:
Average total assets (GAAP)		$	58,066		$	48,024		$	41,225	$	147,315		$	56,689		$	47,902		$	39,808		$	144,399		$	55,660		$	47,388		$	39,131		$	142,179
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876			6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			1		1			—			—			1			1			—			—			2			2
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			523		523			—			—			509			509			—			—			496			496

Average tangible assets	D	$	58,066		$	48,024		$	34,871	$	140,961		$	56,689		$	47,902		$	33,440		$	138,031		$	55,660		$	47,388		$	32,749		$	135,797

Return on average total tangible assets	A/D		0.63	%		1.42	%		NM		0.79	%		0.64	%		1.35	%		NM			0.86	%		0.65	%		1.39	%		NM			0.72	%
Efficiency ratio:
Noninterest expense (GAAP)	E	$	649		$	187		$	11	$	847		$	650		$	181		$	36		$	867		$	632		$	186		$	9		$	827
Net interest income (GAAP)			639			347			—		986			621			327			(3	)		945			602			314			7			923
Noninterest income (GAAP)			227			122			28		377			229			123			83			435			219			122			14			355

Total revenue (GAAP)	F	$	866		$	469		$	28	$	1,363		$	850		$	450		$	80		$	1,380		$	821		$	436		$	21		$	1,278

Efficiency ratio	E/F		74.90	%		39.83	%		NM		62.18	%		76.46	%		40.21	%		NM			62.88	%		76.98	%		42.88	%		NM			64.71	%

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS (CONTINUED)

(dollars in millions)


		THREE MONTHS ENDED MAR 31,											THREE MONTHS ENDED DEC 31,
		2016											2015
		Consumer Banking			Commercial Banking			Other		Consolidated			Consumer Banking			Commercial Banking			Other		Consolidated
Net income available to common stockholders:
Net income (loss) (GAAP)	A	$	71		$	133		$	19	$	223		$	67		$	152		$	2	$	221
Less: Preferred stock dividends			—			—			7		7			—			—			—		—

Net income available to common stockholders	B	$	71		$	133		$	12	$	216		$	67		$	152		$	2	$	221

Return on average tangible common equity:
Average common equity (GAAP)		$	5,089		$	4,790		$	9,688	$	19,567		$	4,831		$	4,787		$	9,741	$	19,359
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			3		3			—			—			3		3
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			481		481			—			—			468		468

Average tangible common equity	C	$	5,089		$	4,790		$	3,290	$	13,169		$	4,831		$	4,787		$	3,330	$	12,948

Return on average tangible common equity	B/C		5.59	%		11.19	%		NM		6.61	%		5.50	%		12.57	%		NM		6.75	%
Return on average total tangible assets:
Average total assets (GAAP)		$	55,116		$	45,304		$	38,360	$	138,780		$	54,065		$	43,835		$	38,398	$	136,298
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876		6,876
Average other intangibles (GAAP)			—			—			3		3			—			—			3		3
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			481		481			—			—			468		468

Average tangible assets	D	$	55,116		$	45,304		$	31,962	$	132,382		$	54,065		$	43,835		$	31,987	$	129,887

Return on average total tangible assets	A/D		0.52	%		1.18	%		NM		0.68	%		0.49	%		1.37	%		NM		0.67	%
Efficiency ratio:
Noninterest expense (GAAP)	E	$	616		$	187		$	8	$	811		$	624		$	180		$	6	$	810
Net interest income (GAAP)			581			300			23		904			565			301			4		870
Noninterest income (GAAP)			208			99			23		330			226			107			29		362

Total revenue (GAAP)	F	$	789		$	399		$	46	$	1,234		$	791		$	408		$	33	$	1,232

Efficiency ratio	E/F		78.08	%		46.74	%		NM		65.66	%		78.85	%		44.02	%		NM		65.76	%

KEY PERFORMANCE METRICS, NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS - SEGMENTS (CONTINUED)

(dollars in millions)


		FULL YEAR
		2016											2015
		Consumer Banking			Commercial Banking			Other		Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income available to common stockholders:
Net income (loss) (GAAP)	A	$	345		$	631		$	69	$	1,045		$	262		$	579		($	1	)	$	840
Less: Preferred stock dividends			—			—			14		14			—			—			7			7

Net income available to common stockholders	B	$	345		$	631		$	55	$	1,031		$	262		$	579		($	8	)	$	833

Return on average tangible common equity:
Average common equity (GAAP)		$	5,166		$	5,071		$	9,461	$	19,698		$	4,739		$	4,666		$	9,949		$	19,354
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			2		2			—			—			4			4
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			502		502			—			—			445			445

Average tangible common equity	C	$	5,166		$	5,071		$	3,085	$	13,322		$	4,739		$	4,666		$	3,514		$	12,919

Return on average tangible common equity	B/C		6.68	%		12.44	%		NM		7.74	%		5.53	%		12.41	%		NM			6.45	%
Return on average total tangible assets:
Average total assets (GAAP)		$	56,388		$	47,159		$	39,636	$	143,183		$	52,848		$	42,800		$	39,422		$	135,070
Less: Average goodwill (GAAP)			—			—			6,876		6,876			—			—			6,876			6,876
Average other intangibles (GAAP)			—			—			2		2			—			—			4			4
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			502		502			—			—			445			445

Average tangible assets	D	$	56,388		$	47,159		$	33,260	$	136,807		$	52,848		$	42,800		$	32,987		$	128,635

Return on average total tangible assets	A/D		0.61	%		1.34	%		NM		0.76	%		0.50	%		1.35	%		NM			0.65	%
Efficiency ratio:
Noninterest expense (GAAP)	E	$	2,547		$	741		$	64	$	3,352		$	2,456		$	709		$	94		$	3,259
Net interest income (GAAP)			2,443			1,288			27		3,758			2,198			1,162			42			3,402
Noninterest income (GAAP)			883			466			148		1,497			910			415			97			1,422

Total revenue (GAAP)	F	$	3,326		$	1,754		$	175	$	5,255		$	3,108		$	1,577		$	139		$	4,824

Efficiency ratio	E/F		76.57	%		42.26	%		NM		63.80	%		79.02	%		44.94	%		NM			67.56	%

CITIZENS FINANCIAL GROUP INC/RI - FORM 8-K - EX-99.3 - January 20, 2017

Attached files

CITIZENS FINANCIAL GROUP INC/RI Reports