CITIZENS FINANCIAL GROUP INC/RI - FORM 8-K - EX-99.1

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8-K - FORM 8-K - CITIZENS FINANCIAL GROUP INC/RI	d875150d8k.htm

Exhibit 99.1

LOGO

Financial Supplement

Fourth Quarter and Full Year 2019


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		8

Average Annualized Yields and Rates		9

Segment Financial Highlights		10
Credit-Related Information:
Nonperforming Assets		17
Charge-offs, Recoveries and Related Ratios		18
Summary of Changes in the Components of the Allowance for Credit Losses		20

Capital and Ratios		21

Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations		22

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

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


	QUARTERLY TRENDS																											FULL YEAR
																4Q19 Change																		2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19						4Q18						2019			2018			2018
																$/bps			%			$/bps			%									$/bps			%
SELECTED OPERATING DATA
Total revenue	$	1,637		$	1,638		$	1,628		$	1,588		$	1,593		($	1	)		—	%	$	44			3	%	$	6,491		$	6,128		$	363			6	%
Noninterest expense		986			973			951			937			951			13			1			35			4			3,847			3,619			228			6

Profit before provision for credit losses		651			665			677			651			642			(14	)		(2	)		9			1			2,644			2,509			135			5
Provision for credit losses		110			101			97			85			85			9			9			25			29			393			326			67			21
NET INCOME		450			449			453			439			465			1			—			(15	)		(3	)		1,791			1,721			70			4
Net income, Underlying¹		454			453			458			443			474			1			—			(20	)		(4	)		1,808			1,737			71			4
Net income available to common stockholders		427			432			435			424			450			(5	)		(1	)		(23	)		(5	)		1,718			1,692			26			2
Net income available to common stockholders, Underlying¹		431			436			440			428			459			(5	)		(1	)		(28	)		(6	)		1,735			1,708			27			2
PER COMMON SHARE DATA
Basic earnings	$	0.98		$	0.97		$	0.95		$	0.92		$	0.96		$	0.01			1	%	$	0.02			2	%	$	3.82		$	3.54		$	0.28			8	%
Diluted earnings		0.98			0.97			0.95			0.92			0.96			0.01			1			0.02			2			3.81			3.52			0.29			8
Basic earnings, Underlying¹		0.99			0.98			0.96			0.93			0.98			0.01			1			0.01			1			3.86			3.57			0.29			8
Diluted earnings, Underlying¹		0.99			0.98			0.96			0.93			0.98			0.01			1			0.01			1			3.84			3.56			0.28			8
Cash dividends declared and paid per common share		0.36			0.36			0.32			0.32			0.27			—			—			0.09			33			1.36			0.98			0.38			39
Book value per common share		47.63			46.67			45.61			44.24			42.87			0.96			2			4.76			11			47.63			42.87			4.76			11
Tangible book value per common share		32.08			31.48			30.88			29.60			28.73			0.60			2			3.35			12			32.08			28.73			3.35			12
Dividend payout ratio		37	%		37	%		34	%		35	%		28	%		—	bps					900	bps					36	%		28	%		800	bps
Dividend payout ratio, Underlying¹		36			37			33			34			27			(100	) bps					900	bps					35			27			800	bps
COMMON SHARES OUTSTANDING
Average: Basic		434,684,606			445,703,987			458,154,335			460,713,172			467,338,825			(11,019,381	)		(2	%)		(32,654,219	)		(7	%)		449,731,453			478,822,072			(29,090,619	)		(6	%)
Diluted		436,500,829			447,134,595			459,304,224			462,520,680			469,103,134			(10,633,766	)		(2	)		(32,602,305	)		(7	)		451,213,701			480,430,741			(29,217,040	)		(6	)
Common shares at period-end		433,121,083			443,913,525			457,903,826			461,116,723			466,007,984			(10,792,442	)		(2	)		(32,886,901	)		(7	)		433,121,083			466,007,984			(32,886,901	)		(7	)
SHARE PRICE
High	$	40.92		$	38.06		$	36.89		$	37.73		$	39.69		$	2.86			8	%	$	1.23			3	%	$	40.92		$	48.23		($	7.31	)		(15	%)
Low		32.47			31.34			32.36			29.26			27.62			1.13			4			4.85			18			29.26			27.62			1.64			6
Close		40.61			35.37			35.36			32.50			29.73			5.24			15			10.88			37			40.61			29.73			10.88			37
Market capitalization		17,589			15,701			16,191			14,986			13,854			1,888			12			3,735			27			17,589			13,854			3,735			27
SEGMENT NET INCOME
Consumer Banking	$	209		$	251		$	213		$	202		$	193		($	42	)		(17	%)	$	16			8	%	$	875		$	767		$	108			14	%
Commercial Banking		231			196			216			227			241			35			18			(10	)		(4	)		870			927			(57	)		(6	)
Other		10			2			24			10			31			8			NM			(21	)		(68	)		46			27			19			70

NET INCOME	$	450		$	449		$	453		$	439		$	465		$	1			—	%	($	15	)		(3	%)	$	1,791		$	1,721		$	70			4	%

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

(in millions, except ratio and headcount data)


	QUARTERLY TRENDS																											FULL YEAR
																4Q19 Change																		2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19						4Q18						2019			2018			2018
																$/bps			%			$/bps			%									$/bps			%
FINANCIAL RATIOS
Net interest margin¹		3.04	%		3.10	%		3.20	%		3.23	%		3.23	%		(6	) bps					(19	) bps					3.14	%		3.21	%		(7	) bps
Net interest margin, FTE²		3.06			3.12			3.21			3.25			3.25			(6	) bps					(19	) bps					3.16			3.22			(6	) bps
Return on average common equity		8.30			8.35			8.54			8.62			9.16			(5	) bps					(86	) bps					8.45			8.62			(17	) bps
Return on average common equity, Underlying³		8.36			8.45			8.63			8.71			9.33			(9	) bps					(97	) bps					8.53			8.69			(16	) bps
Return on average tangible common equity		12.39			12.44			12.75			13.00			13.85			(5	) bps					(146	) bps					12.64			12.94			(30	) bps
Return on average tangible common equity, Underlying³		12.49			12.58			12.89			13.12			14.11			(9	) bps					(162	) bps					12.76			13.06			(30	) bps
Return on average total assets		1.08			1.10			1.13			1.11			1.17			(2	) bps					(9	) bps					1.10			1.11			(1	) bps
Return on average total assets, Underlying³		1.09			1.11			1.14			1.12			1.19			(2	) bps					(10	) bps					1.11			1.12			(1	) bps
Return on average total tangible assets		1.13			1.15			1.17			1.16			1.22			(2	) bps					(9	) bps					1.15			1.16			(1	) bps
Return on average total tangible assets, Underlying³		1.14			1.16			1.19			1.17			1.24			(2	) bps					(10	) bps					1.16			1.17			(1	) bps
Effective income tax rate		16.76			20.46			21.86			22.42			16.45			(370	) bps					31	bps					20.43			21.16			(73	) bps
Effective income tax rate, Underlying³		21.52			22.29			21.89			22.44			21.91			(77	) bps					(39	) bps					22.03			22.55			(52	) bps
Efficiency ratio		60.28			59.40			58.41			59.00			59.69			88	bps					59	bps					59.28			59.06			22	bps
Efficiency ratio, Underlying³		58.02			58.22			58.02			58.67			56.70			(20	) bps					132	bps					58.23			58.13			10	bps
Noninterest income as a % of total revenue		30	%		30	%		28	%		27	%		26	%		—	bps					400	bps					29	%		26	%		300	bps
Noninterest income as a % of total revenue, Underlying³		30	%		30	%		28	%		27	%		27	%		—	bps					300	bps					29	%		26	%		300	bps
CAPITAL RATIOS - PERIOD-END (PRELIMINARY)
CET1 capital ratio		10.0	%		10.3	%		10.5	%		10.5	%		10.6	%
Tier 1 capital ratio		11.1			11.1			11.3			11.3			11.3
Total capital ratio		13.0			13.0			13.4			13.4			13.3
Tier 1 leverage ratio		10.0			9.9			10.1			10.0			10.0
SELECTED BALANCE SHEET DATA (PERIOD-END)
Total assets	$	165,733		$	164,362		$	162,749		$	161,342		$	160,518		$	1,371			1	%	$	5,215			3	%	$	165,733		$	160,518		$	5,215			3	%
Loans and leases:
Commercial		57,538			56,733			56,963			57,689			56,783			805			1			755			1			57,538			56,783			755			1
Retail		61,550			61,147			59,875			59,926			59,877			403			1			1,673			3			61,550			59,877			1,673			3

Total loans and leases		119,088			117,880			116,838			117,615			116,660			1,208			1			2,428			2			119,088			116,660			2,428			2
Deposits		125,313			124,714			124,004			123,916			119,575			599			—			5,738			5			125,313			119,575			5,738			5
Long-term borrowed funds⁴		14,047			12,806			11,538			11,725			15,925			1,241			10			(1,878	)		(12	)		14,047			15,925			(1,878	)		(12	)
Total stockholders’ equity		22,201			21,851			22,017			21,531			20,817			350			2			1,384			7			22,201			20,817			1,384			7
Loans-to-deposits ratio (period-end balances)		95.03	%		94.52	%		94.22	%		94.92	%		97.56	%		51	bps					(253	) bps					95.03	%		97.56	%		(253	) bps
Loans-to-deposits ratio (average balances)		94.63			94.62			95.64			97.70			98.41			1	bps					(378	) bps					95.62			97.94			(232	) bps
Full-time equivalent colleagues		17,997			18,116			18,207			18,078			18,140			(119	)		(1	)		(143	)		(1	)		17,997			18,140			(143	)		(1	)

Beginning in the first quarter of 2019, we changed the method of calculating our net interest margin to equal net interest income, annualized based on the number of days in the period, divided by average total interest-earning assets. Prior periods have been adjusted to conform with the current period presentation.

²	Net interest income and net interest margin is presented on a fully taxable-equivalent (“FTE”) basis using the federal statutory tax rate of 21%. The FTE impact is predominantly attributable to commercial loans for the periods presented.

³	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.

⁴	Beginning in the first quarter of 2019, borrowed funds balances and the associated interest expense are based on original maturity. Prior periods have been adjusted to conform with the current period presentation.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in millions)


	QUARTERLY TRENDS																						FULL YEAR
											4Q19 Change																2019 Change
	4Q19		3Q19		2Q19		1Q19		4Q18		3Q19						4Q18						2019		2018		2018
											$			%			$			%							$			%
INTEREST INCOME
Interest and fees on loans and leases	$	1,312	$	1,356	$	1,392	$	1,381	$	1,347	($	44	)		(3	%)	($	35	)		(3	%)	$	5,441	$	5,010	$	431			9	%
Interest and fees on loans held for sale		18		19		15		11		14		(1	)		(5	)		4			29			63		37		26			70
Interest and fees on other loans held for sale		5		2		2		4		1		3			150			4			NM			13		10		3			30
Investment securities		159		153		164		166		172		6			4			(13	)		(8	)		642		672		(30	)		(4	)
Interest-bearing deposits in banks		7		8		7		8		8		(1	)		(13	)		(1	)		(13	)		30		29		1			3

Total interest income		1,501		1,538		1,580		1,570		1,542		(37	)		(2	)		(41	)		(3	)		6,189		5,758		431			7

INTEREST EXPENSE
Deposits		263		297		308		287		245		(34	)		(11	)		18			7			1,155		785		370			47
Federal funds purchased and securities sold under agreements to repurchase		1		2		3		2		2		(1	)		(50	)		(1	)		(50	)		8		6		2			33
Other short-term borrowed funds¹		1		—		1		—		2		1			100			(1	)		(50	)		2		9		(7	)		(78	)
Long-term borrowed funds¹		93		94		102		121		121		(1	)		(1	)		(28	)		(23	)		410		426		(16	)		(4	)

Total interest expense		358		393		414		410		370		(35	)		(9	)		(12	)		(3	)		1,575		1,226		349			28

Net interest income		1,143		1,145		1,166		1,160		1,172		(2	)		—			(29	)		(2	)		4,614		4,532		82			2

NONINTEREST INCOME
Service charges and fees		128		128		126		123		131		—			—			(3	)		(2	)		505		513		(8	)		(2	)
Mortgage banking fees		80		117		62		43		51		(37	)		(32	)		29			57			302		152		150			99
Card fees		64		67		64		59		62		(3	)		(4	)		2			3			254		244		10			4
Capital markets fees		66		39		57		54		45		27			69			21			47			216		179		37			21
Trust and investment services fees		52		50		53		47		43		2			4			9			21			202		171		31			18
Foreign exchange and interest rate products		49		35		35		36		34		14			40			15			44			155		126		29			23
Letter of credit and loan fees		35		34		33		33		34		1			3			1			3			135		128		7			5
Securities gains, net		4		3		4		8		6		1			33			(2	)		(33	)		19		19		—			—
Other income		16		20		28		25		15		(4	)		(20	)		1			7			89		64		25			39

Total noninterest income		494		493		462		428		421		1			—			73			17			1,877		1,596		281			18

TOTAL REVENUE		1,637		1,638		1,628		1,588		1,593		(1	)		—			44			3			6,491		6,128		363			6
Provision for credit losses		110		101		97		85		85		9			9			25			29			393		326		67			21
NONINTEREST EXPENSE
Salaries and employee benefits		502		508		507		509		483		(6	)		(1	)		19			4			2,026		1,880		146			8
Equipment and software expense²		133		130		126		125		124		3			2			9			7			514		464		50			11
Outside services		142		128		118		110		135		14			11			7			5			498		447		51			11
Occupancy		88		80		82		83		92		8			10			(4	)		(4	)		333		333		—			—
Other operating expense		121		127		118		110		117		(6	)		(5	)		4			3			476		495		(19	)		(4	)

Total noninterest expense		986		973		951		937		951		13			1			35			4			3,847		3,619		228			6

Income before income tax expense		541		564		580		566		557		(23	)		(4	)		(16	)		(3	)		2,251		2,183		68			3
Income tax expense		91		115		127		127		92		(24	)		(21	)		(1	)		(1	)		460		462		(2	)		—

Net income	$	450	$	449	$	453	$	439	$	465	$	1			—	%	($	15	)		(3	%)	$	1,791	$	1,721	$	70			4	%

Net income, Underlying³	$	454	$	453	$	458	$	443	$	474	$	1			—	%	($	20	)		(4	%)	$	1,808	$	1,737	$	71			4	%

Net income available to common stockholders	$	427	$	432	$	435	$	424	$	450	($	5	)		(1	%)	($	23	)		(5	%)	$	1,718	$	1,692	$	26			2	%

Net income available to common stockholders, Underlying³	$	431	$	436	$	440	$	428	$	459	($	5	)		(1	%)	($	28	)		(6	%)	$	1,735	$	1,708	$	27			2	%

¹	Beginning in the first quarter of 2019, borrowed funds balances and the associated interest expense are based on original maturity. Prior periods have been adjusted to conform with the current period presentation.

²	Beginning in the first quarter of 2019, we combined our presentation of equipment expense and amortization of software into equipment and software expense. Prior periods have been adjusted to conform with the current period presentation.

³	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)

(in millions)


PERIOD-END BALANCES	AS OF															DECEMBER 31, 2019 CHANGE
	Dec 31, 2019			Sept 30, 2019			June 30, 2019			Mar 31, 2019			Dec 31, 2018			September 30, 2019						December 31, 2018
																$			%			$			%
ASSETS
Cash and due from banks	$	1,175		$	1,638		$	996		$	923		$	1,081		($	463	)		(28	%)	$	94			9	%
Interest-bearing cash and due from banks		2,211			2,204			2,039			1,513			2,993			7			—			(782	)		(26	)
Interest-bearing deposits in banks		297			158			186			167			148			139			88			149			101
Debt securities available for sale, at fair value		20,613			21,502			21,698			21,504			19,895			(889	)		(4	)		718			4
Debt securities held to maturity		3,202			3,319			3,447			3,345			4,165			(117	)		(4	)		(963	)		(23	)
Equity securities, at fair value		47			47			47			198			181			—			—			(134	)		(74	)
Equity securities, at cost		807			734			706			604			834			73			10			(27	)		(3	)
Loans held for sale, at fair value		1,946			1,993			1,750			1,186			1,219			(47	)		(2	)		727			60
Other loans held for sale		1,384			22			455			66			101			1,362			NM			1,283			NM
Loans and leases		119,088			117,880			116,838			117,615			116,660			1,208			1			2,428			2
Less: Allowance for loan and lease losses		(1,252	)		(1,263	)		(1,227	)		(1,245	)		(1,242	)		11			1			(10	)		(1	)

Net loans and leases		117,836			116,617			115,611			116,370			115,418			1,219			1			2,418			2
Derivative assets		807			1,027			833			465			317			(220	)		(21	)		490			155
Premises and equipment		761			747			740			746			791			14			2			(30	)		(4	)
Bank-owned life insurance		1,725			1,720			1,711			1,705			1,698			5			—			27			2
Goodwill		7,044			7,044			7,040			7,040			6,923			—			—			121			2
Due from broker		—			257			249			92			—			(257	)		(100	)		—			—
Other assets		5,878			5,333			5,241			5,418			4,754			545			10			1,124			24

TOTAL ASSETS	$	165,733		$	164,362		$	162,749		$	161,342		$	160,518		$	1,371			1%		$	5,215			3	%

LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits:
Noninterest-bearing	$	29,233		$	29,939		$	28,192		$	28,383		$	29,458		($	706	)		(2	%)	($	225	)		(1	%)
Interest-bearing		96,080			94,775			95,812			95,533			90,117			1,305			1			5,963			7

Total deposits		125,313			124,714			124,004			123,916			119,575			599			—			5,738			5
Federal funds purchased and securities sold under agreements to repurchase¹		265			867			1,132			668			1,156			(602	)		(69	)		(891	)		(77	)
Other short-term borrowed funds²		9			210			309			11			161			(201	)		(96	)		(152	)		(94	)
Derivative liabilities		120			161			106			173			292			(41	)		(25	)		(172	)		(59	)
Deferred taxes, net		866			752			767			676			573			114			15			293			51
Long-term borrowed funds²		14,047			12,806			11,538			11,725			15,925			1,241			10			(1,878	)		(12	)
Due to broker		—			206			257			93			—			(206	)		(100	)		—			—
Other liabilities		2,912			2,795			2,619			2,549			2,019			117			4			893			44

TOTAL LIABILITIES		143,532			142,511			140,732			139,811			139,701			1,021			1			3,831			3
STOCKHOLDERS’ EQUITY
Preferred stock:
$25.00 par value, 100,000,000 shares authorized for each of the periods presented		1,570			1,133			1,133			1,132			840			437			39			730			87
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		18,891			18,876			18,860			18,847			18,815			15			—			76			—
Retained earnings		6,498			6,229			5,959			5,672			5,385			269			4			1,113			21
Treasury stock, at cost		(4,353	)		(3,953	)		(3,453	)		(3,333	)		(3,133	)		(400	)		(10	)		(1,220	)		(39	)
Accumulated other comprehensive loss		(411	)		(440	)		(488	)		(793	)		(1,096	)		29			7			685			63

TOTAL STOCKHOLDERS’ EQUITY		22,201			21,851			22,017			21,531			20,817			350			2			1,384			7

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	165,733		$	164,362		$	162,749		$	161,342		$	160,518		$	1,371			1	%	$	5,215			3	%

Memo: Total tangible common equity	$	13,893		$	13,976		$	14,141		$	13,649		$	13,389		($	83	)		(1	%)	$	504			4	%

¹	Balances are net of certain short-term receivables associated with reverse repurchase agreements.

²	Beginning in the first quarter of 2019, borrowed funds balances and the associated interest expense are based on original maturity. Prior periods have been adjusted to conform with the current period presentation.

LOANS AND DEPOSITS

(in millions)


PERIOD-END BALANCES	AS OF										DECEMBER 31, 2019 CHANGE
	Dec 31, 2019		Sept 30, 2019		June 30, 2019		Mar 31, 2019		Dec 31, 2018		Sept 30, 2019						December 31, 2018
											$			%			$			%
LOANS AND LEASES
Commercial	$	41,479	$	41,356	$	41,156	$	41,497	$	40,857	$	123			—	%	$	622			2	%
Commercial real estate		13,522		12,820		13,123		13,372		13,023		702			5			499			4
Leases		2,537		2,557		2,684		2,820		2,903		(20	)		(1	)		(366	)		(13	)

Total commercial loans and leases		57,538		56,733		56,963		57,689		56,783		805			1			755			1

Residential mortgages		19,083		19,699		19,192		19,174		18,978		(616	)		(3	)		105			1
Home equity loans		812		876		938		1,006		1,073		(64	)		(7	)		(261	)		(24	)
Home equity lines of credit		11,979		12,148		12,266		12,394		12,710		(169	)		(1	)		(731	)		(6	)
Home equity loans serviced by others		289		318		348		375		399		(29	)		(9	)		(110	)		(28	)
Home equity lines of credit serviced by others		74		81		88		95		104		(7	)		(9	)		(30	)		(29	)
Automobile		12,120		12,070		12,000		11,992		12,106		50			—			14			—
Education		10,347		9,729		9,305		9,274		8,900		618			6			1,447			16
Credit card		2,198		2,133		2,046		1,982		1,991		65			3			207			10
Other retail		4,648		4,093		3,692		3,634		3,616		555			14			1,032			29

Total retail loans		61,550		61,147		59,875		59,926		59,877		403			1			1,673			3

Total loans and leases	$	119,088	$	117,880	$	116,838	$	117,615	$	116,660	$	1,208			1	%	$	2,428			2	%


Loans held for sale, at fair value		1,946		1,993		1,750		1,186		1,219		(47	)		(2	)		727			60
Other loans held for sale		1,384		22		455		66		101		1,362			NM			1,283			NM

Loans and leases and loans held for sale	$	122,418	$	119,895	$	119,043	$	118,867	$	117,980	$	2,523			2	%	$	4,438			4	%


DEPOSITS
Demand	$	29,233	$	29,939	$	28,192	$	28,383	$	29,458	($	706	)		(2	%)	($	225	)		(1	%)
Checking with interest		24,840		24,403		25,021		23,482		23,067		437			2			1,773			8
Regular savings		13,779		13,479		13,495		13,239		12,007		300			2			1,772			15
Money market accounts		38,725		36,826		35,329		35,972		35,701		1,899			5			3,024			8
Term deposits		18,736		20,067		21,967		22,840		19,342		(1,331	)		(7	)		(606	)		(3	)

Total deposits	$	125,313	$	124,714	$	124,004	$	123,916	$	119,575	$	599			—	%	$	5,738			5	%

AVERAGE BALANCE SHEETS

(in millions)


	QUARTERLY TRENDS																											FULL YEAR
																4Q19 Change																		2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19						4Q18						2019			2018			2018
																$			%			$			%									$			%
ASSETS
Interest-bearing cash and due from banks and deposits in banks	$	1,970		$	1,474		$	1,229		$	1,497		$	1,467		$	496			34	%	$	503			34	%	$	1,544		$	1,579		($	35	)		(2	%)

Taxable investment securities		25,305			25,635			25,620			25,136			25,081			(330	)		(1	)		224			1			25,425			25,233			192			1
Non-taxable investment securities		5			5			5			5			5			—			—			—			—			5			6			(1	)		(17	)

Total investment securities		25,310			25,640			25,625			25,141			25,086			(330	)		(1	)		224			1			25,430			25,239			191			1

Investment securities and interest-bearing deposits		27,280			27,114			26,854			26,638			26,553			166			1			727			3			26,974			26,818			156			1

Commercial		42,012			41,476			41,755			41,562			40,472			536			1			1,540			4			41,702			39,363			2,339			6
Commercial real estate		13,103			12,892			13,379			13,272			12,900			211			2			203			2			13,160			12,299			861			7
Leases		2,546			2,615			2,745			2,873			2,938			(69	)		(3	)		(392	)		(13	)		2,694			3,038			(344	)		(11	)

Total commercial loans and leases		57,661			56,983			57,879			57,707			56,310			678			1			1,351			2			57,556			54,700			2,856			5

Residential mortgages		19,495			19,405			19,232			19,094			18,713			90			—			782			4			19,308			17,883			1,425			8
Home equity loans		843			906			971			1,039			1,101			(63	)		(7	)		(258	)		(23	)		939			1,215			(276	)		(23	)
Home equity lines of credit		12,045			12,182			12,332			12,552			12,790			(137	)		(1	)		(745	)		(6	)		12,276			13,043			(767	)		(6	)
Home equity loans serviced by others		301			330			359			385			411			(29	)		(9	)		(110	)		(27	)		343			463			(120	)		(26	)
Home equity lines of credit serviced by others		76			83			92			99			108			(7	)		(8	)		(32	)		(30	)		87			124			(37	)		(30	)
Automobile		12,099			12,036			11,984			12,070			12,179			63			1			(80	)		(1	)		12,047			12,555			(508	)		(4	)
Education		9,888			9,459			9,235			9,069			8,801			429			5			1,087			12			9,415			8,486			929			11
Credit cards		2,188			2,103			2,041			1,998			1,973			85			4			215			11			2,083			1,891			192			10
Other retail		4,309			3,770			3,658			3,636			3,507			539			14			802			23			3,846			3,113			733			24

Total retail loans		61,244			60,274			59,904			59,942			59,583			970			2			1,661			3			60,344			58,773			1,571			3

Total loans and leases		118,905			117,257			117,783			117,649			115,893			1,648			1			3,012			3			117,900			113,473			4,427			4
Loans held for sale, at fair value		2,209			1,970			1,528			1,035			1,245			239			12			964			77			1,689			844			845			100
Other loans held for sale		517			134			158			191			79			383			NM			438			NM			251			164			87			53

Total interest-earning assets		148,911			146,475			146,323			145,513			143,770			2,436			2			5,141			4			146,814			141,299			5,515			4
Allowance for loan and lease losses		(1,260	)		(1,226	)		(1,247	)		(1,243	)		(1,241	)		(34	)		(3	)		(19	)		(2	)		(1,244	)		(1,245	)		1			—
Goodwill		7,044			7,044			7,040			7,018			6,946			—			—			98			1			7,036			6,912			124			2
Other noninterest-earning assets		9,951			9,817			9,373			9,127			8,257			134			1			1,694			21			9,570			7,587			1,983			26

TOTAL ASSETS	$	164,646		$	162,110		$	161,489		$	160,415		$	157,732		$	2,536			2	%	$	6,914			4	%	$	162,176		$	154,553		$	7,623			5	%

LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Checking with interest	$	23,545		$	23,422		$	23,919		$	22,987		$	21,792		$	123			1	%	$	1,753			8	%	$	23,470		$	21,856		$	1,614			7	%
Money market accounts		38,809			37,161			35,228			35,209			35,929			1,648			4			2,880			8			36,613			36,497			116			—
Regular savings		13,582			13,442			13,324			12,626			11,220			140			1			2,362			21			13,247			10,238			3,009			29
Term deposits		19,788			20,951			22,292			21,127			19,000			(1,163	)		(6	)		788			4			21,035			18,035			3,000			17

Total interest-bearing deposits		95,724			94,976			94,763			91,949			87,941			748			1			7,783			9			94,365			86,626			7,739			9
Federal funds purchased and securities sold under agreements to repurchase¹		456			487			818			640			821			(31	)		(6	)		(365	)		(44	)		599			654			(55	)		(8	)
Other short-term borrowed funds²		48			113			45			58			341			(65	)		(58	)		(293	)		(86	)		66			467			(401	)		(86	)
Long-term borrowed funds²		12,830			12,134			12,386			14,736			15,573			696			6			(2,743	)		(18	)		13,014			14,796			(1,782	)		(12	)

Total borrowed funds		13,334			12,734			13,249			15,434			16,735			600			5			(3,401	)		(20	)		13,679			15,917			(2,238	)		(14	)

Total interest-bearing liabilities		109,058			107,710			108,012			107,383			104,676			1,348			1			4,382			4			108,044			102,543			5,501			5
Total demand deposits		29,928			28,945			28,389			28,465			29,824			983			3			104			—			28,936			29,231			(295	)		(1	)
Other liabilities		3,819			3,789			3,536			3,584			2,948			30			1			871			30			3,683			2,651			1,032			39

TOTAL LIABILITIES		142,805			140,444			139,937			139,432			137,448			2,361			2			5,357			4			140,663			134,425			6,238			5

STOCKHOLDERS’ EQUITY		21,841			21,666			21,552			20,983			20,284			175			1			1,557			8			21,513			20,128			1,385			7

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	164,646		$	162,110		$	161,489		$	160,415		$	157,732		$	2,536			2	%	$	6,914			4	%	$	162,176		$	154,553		$	7,623			5	%

Memo: Total loans and leases, including loans held for sale	$	121,631		$	119,361		$	119,469		$	118,875		$	117,217		$	2,270			2	%	$	4,414			4	%	$	119,840		$	114,481		$	5,359			5	%
Total deposits (interest-bearing and demand)	$	125,652		$	123,921		$	123,152		$	120,414		$	117,765		$	1,731			1	%	$	7,887			7	%	$	123,301		$	115,857		$	7,444			6	%
Total average tangible common equity	$	13,660		$	13,788		$	13,670		$	13,233		$	12,907		($	128	)		(1	%)	$	753			6	%	$	13,589		$	13,078		$	511			4	%

¹	Balances are net of certain short-term receivables associated with reverse repurchase agreements.

²	Beginning in the first quarter of 2019, borrowed funds balances and the associated interest expense are based on original maturity. Prior periods have been adjusted to conform with the current period presentation.

AVERAGE ANNUALIZED YIELDS AND RATES

(in millions, except rates)


	QUARTERLY TRENDS																									FULL YEAR
	4Q19					3Q19					2Q19					1Q19					4Q18					2019					2018
	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 cash and due from banks and deposits in banks		1.49	%	$	7		2.09	%	$	8		2.16	%	$	7		2.19	%	$	8		2.05	%	$	8		1.94	%	$	30		1.82	%	$	29

Taxable investment securities		2.47			159		2.38			153		2.56			164		2.64			166		2.73			172		2.51			642		2.66			672
Non-taxable investment securities		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—

Total investment securities		2.47			159		2.38			153		2.56			164		2.64			166		2.73			172		2.51			642		2.66			672

Investment securities and interest-bearing deposits					166					161					171					174					180					672					701

Commercial		3.95			424		4.17			442		4.45			471		4.43			460		4.25			440		4.25			1,797		4.06			1,621
Commercial real estate		4.26			142		4.70			155		4.91			166		4.98			165		4.77			157		4.71			628		4.47			557
Leases		2.77			18		2.85			19		2.89			19		2.85			21		2.81			20		2.84			77		2.71			82

Total commercial loans and leases		3.97			584		4.23			616		4.48			656		4.48			646		4.30			617		4.29			2,502		4.08			2,260

Residential mortgages		3.40			165		3.53			171		3.65			176		3.67			175		3.67			171		3.56			687		3.60			644
Home equity loans		6.11			13		6.21			14		6.01			14		6.05			16		6.09			17		6.09			57		5.91			72
Home equity lines of credit		4.55			138		5.08			156		5.15			158		5.13			159		4.91			158		4.98			611		4.54			592
Home equity loans serviced by others		8.07			6		8.48			7		7.67			7		7.75			7		7.48			8		7.98			27		7.36			34
Home equity lines of credit serviced by others		5.39			2		4.56			1		5.27			1		4.97			1		4.56			1		5.04			5		4.23			5
Automobile		4.32			132		4.25			129		4.19			125		4.04			120		3.90			119		4.20			506		3.68			461
Education		5.76			143		5.89			141		5.97			137		5.99			134		5.87			130		5.89			555		5.74			487
Credit cards		9.53			53		9.93			53		10.26			52		10.76			53		10.51			52		10.10			211		10.68			202
Other retail		6.97			76		7.25			68		7.11			66		7.83			70		8.17			74		7.27			280		8.09			253

Total retail loans		4.72			728		4.88			740		4.92			736		4.96			735		4.87			730		4.87			2,939		4.68			2,750

Total loans and leases		4.36			1,312		4.56			1,356		4.71			1,392		4.72			1,381		4.59			1,347		4.59			5,441		4.39			5,010
Loans held for sale, at fair value		3.38			18		3.71			19		3.93			15		4.35			11		4.59			14		3.74			63		4.38			37
Other loans held for sale		3.89			5		6.42			2		5.67			2		7.03			4		5.13			1		5.10			13		6.18			10

Total interest-earning assets		3.98			1,501		4.15			1,538		4.30			1,580		4.34			1,570		4.24			1,542		4.19			6,189		4.05			5,758
INTEREST-BEARING LIABILITIES
Checking with interest		0.71			42		0.88			52		0.96			57		0.91			52		0.75			42		0.87			203		0.63			138
Money market accounts		1.12			110		1.24			116		1.30			114		1.26			110		1.14			104		1.23			450		0.94			343
Regular savings		0.52			17		0.59			20		0.62			21		0.56			17		0.35			10		0.57			75		0.15			15
Term deposits		1.88			94		2.05			109		2.09			116		2.08			108		1.88			89		2.03			427		1.61			289

Total interest-bearing deposits		1.09			263		1.24			297		1.30			308		1.27			287		1.10			245		1.22			1,155		0.91			785
Federal funds purchased and securities sold under agreements to repurchase¹		0.96			1		1.19			2		1.76			3		1.24			2		1.27			2		1.36			8		0.94			6
Other short-term borrowed funds²		2.16			1		2.46			—		2.66			1		2.75			—		2.58			2		2.50			2		2.10			9
Long-term borrowed funds²		2.91			93		3.07			94		3.30			102		3.27			121		3.07			121		3.14			410		2.86			426

Total borrowed funds		2.84			95		3.00			96		3.20			106		3.18			123		2.98			125		3.06			420		2.76			441

Total interest-bearing liabilities		1.30			358		1.45			393		1.54			414		1.54			410		1.40			370		1.46			1,575		1.19			1,226
INTEREST RATE SPREAD		2.68					2.70					2.77					2.80					2.84					2.73					2.86

NET INTEREST MARGIN AND NET INTEREST INCOME³		3.04	%	$	1,143		3.10	%	$	1,145		3.20	%	$	1,166		3.23	%	$	1,160		3.23	%	$	1,172		3.14	%	$	4,614		3.21	%	$	4,532

NET INTEREST MARGIN AND NET INTEREST INCOME, FTE⁴		3.06	%	$	1,147		3.12	%	$	1,150		3.21	%	$	1,172		3.25	%	$	1,166		3.25	%	$	1,177		3.16	%	$	4,635		3.22	%	$	4,554
Memo: Total deposit costs		0.83	%	$	263		0.95	%	$	297		1.00	%	$	308		0.97	%	$	287		0.82	%	$	245		0.94	%	$	1,155		0.68	%	$	785

¹	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.

²	Beginning in the first quarter of 2019, borrowed funds balances and the associated interest expense are based on original maturity. Prior periods have been adjusted to conform with the current period presentation.

⁴	Net interest income and net interest margin is presented on a fully taxable-equivalent (“FTE”) basis using the federal statutory tax rate of 21%. The FTE impact is predominantly attributable to commercial loans for the periods presented.

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING

(in millions, except ratio data)


	FOURTH QUARTER 2019												THIRD QUARTER 2019												CHANGE
																									4Q19 from 3Q19
	Consumer Banking			Commercial Banking			Other¹			Consolidated			Consumer Banking			Commercial Banking			Other¹			Consolidated			$/bps			%
Net interest income	$	796		$	363		($	16	)	$	1,143		$	799		$	360		($	14	)	$	1,145		($	2	)		—	%
Noninterest income		296			175			23			494			336			133			24			493			1			—

Total revenue		1,092			538			7			1,637			1,135			493			10			1,638			(1	)		—
Noninterest expense		718			219			49			986			718			213			42			973			13			1

Profit (loss) before provision for credit losses		374			319			(42	)		651			417			280			(32	)		665			(14	)		(2	)
Provision for credit losses		97			24			(11	)		110			83			27			(9	)		101			9			9

Income (loss) before income tax expense (benefit)		277			295			(31	)		541			334			253			(23	)		564			(23	)		(4	)
Income tax expense (benefit)		68			64			(41	)		91			83			57			(25	)		115			(24	)		(21	)

Net income	$	209		$	231		$	10		$	450		$	251		$	196		$	2		$	449		$	1			—	%

AVERAGE BALANCES
Total assets	$	68,069		$	56,407		$	40,170		$	164,646		$	66,365		$	55,614		$	40,131		$	162,110		$	2,536			2	%
Total loans and leases²		65,157			54,523			1,951			121,631			63,553			53,814			1,994			119,361			2,270			2
Deposits		85,477			32,715			7,460			125,652			85,595			31,491			6,835			123,921			1,731			1
Interest-earning assets		65,208			54,905			28,798			148,911			63,605			54,087			28,783			146,475			2,436			2
KEY METRICS
Net interest margin		4.85	%		2.62	%		NM			3.04	%		4.99	%		2.64	%		NM			3.10	%		(6	) bps
Efficiency ratio		65.74			40.60			NM			60.28			63.28			43.35			NM			59.40			88	bps
Loans-to-deposits ratio (period-end balances)		74.15			165.24			NM			95.03			73.61			163.62			NM			94.52			51	bps
Loans-to-deposits ratio (average balances)		73.37			165.80			NM			94.63			72.11			170.01			NM			94.62			1	bps
Return on average total tangible assets		1.22			1.63			NM			1.13			1.50			1.40			NM			1.15			(2	) 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, capital, revenues, provision for credit losses, expenses and income tax expense, not attributed to our Consumer Banking or Commercial Banking segments.

²	Includes loans held for sale.

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, CONTINUED

(in millions, except ratio data)


	FOURTH QUARTER 2019												FOURTH QUARTER 2018												CHANGE
																									4Q19 from 4Q18
	Consumer Banking			Commercial Banking			Other¹			Consolidated			Consumer Banking			Commercial Banking			Other¹			Consolidated			$/bps			%
Net interest income	$	796		$	363		($	16	)	$	1,143		$	796		$	384		($	8	)	$	1,172		($	29	)		(2	%)
Noninterest income		296			175			23			494			265			140			16			421			73			17

Total revenue		1,092			538			7			1,637			1,061			524			8			1,593			44			3
Noninterest expense		718			219			49			986			723			203			25			951			35			4

Profit (loss) before provision for credit losses		374			319			(42	)		651			338			321			(17	)		642			9			1
Provision for credit losses		97			24			(11	)		110			80			7			(2	)		85			25			29

Income (loss) before income tax expense (benefit)		277			295			(31	)		541			258			314			(15	)		557			(16	)		(3	)
Income tax expense (benefit)		68			64			(41	)		91			65			73			(46	)		92			(1	)		(1	)

Net income	$	209		$	231		$	10		$	450		$	193		$	241		$	31		$	465		($	15	)		(3	%)

AVERAGE BALANCES
Total assets	$	68,069		$	56,407		$	40,170		$	164,646		$	64,187		$	53,970		$	39,575		$	157,732		$	6,914			4	%
Total loans and leases²		65,157			54,523			1,951			121,631			61,920			52,963			2,334			117,217			4,414			4
Deposits		85,477			32,715			7,460			125,652			79,174			30,608			7,983			117,765			7,887			7
Interest-earning assets		65,208			54,905			28,798			148,911			61,975			53,221			28,574			143,770			5,141			4
KEY METRICS
Net interest margin³		4.85	%		2.62	%		NM			3.04	%		5.09	%		2.86	%		NM			3.23	%		(19	) bps
Efficiency ratio		65.74			40.60			NM			60.28			68.22			38.73			NM			59.69			59	bps
Loans-to-deposits ratio (period-end balances)		74.15			165.24			NM			95.03			76.02			172.27			NM			97.56			(253	) bps
Loans-to-deposits ratio (average balances)		73.37			165.80			NM			94.63			76.91			172.07			NM			98.41			(378	) bps
Return on average total tangible assets		1.22			1.63			NM			1.13			1.19			1.78			NM			1.22			(9	) bps

²	Includes loans held for sale.

SEGMENT FINANCIAL HIGHLIGHTS - CONSOLIDATING, CONTINUED

(in millions, except ratio data)


	FULL YEAR 2019												FULL YEAR 2018												CHANGE
																									2019 from 2018
	Consumer Banking			Commercial Banking			Other¹			Consolidated			Consumer Banking			Commercial Banking			Other¹			Consolidated			$/bps			%
Net interest income	$	3,182		$	1,466		($	34	)	$	4,614		$	3,064		$	1,497		($	29	)	$	4,532		$	82			2	%
Noninterest income		1,156			607			114			1,877			973			545			78			1,596			281			18

Total revenue		4,338			2,073			80			6,491			4,037			2,042			49			6,128			363			6
Noninterest expense		2,851			858			138			3,847			2,723			813			83			3,619			228			6

Profit (loss) before provision for credit losses		1,487			1,215			(58	)		2,644			1,314			1,229			(34	)		2,509			135			5
Provision for credit losses		325			97			(29	)		393			289			26			11			326			67			21

Income (loss) before income tax expense (benefit)		1,162			1,118			(29	)		2,251			1,025			1,203			(45	)		2,183			68			3
Income tax expense (benefit)		287			248			(75	)		460			258			276			(72	)		462			(2	)		—

Net income	$	875		$	870		$	46		$	1,791		$	767		$	927		$	27		$	1,721		$	70			4	%

AVERAGE BALANCES
Total assets	$	66,240		$	55,947		$	39,989		$	162,176		$	62,444		$	52,362		$	39,747		$	154,553		$	7,623			5	%
Total loans and leases²		63,396			54,355			2,089			119,840			60,691			51,344			2,446			114,481			5,359			5
Deposits		84,835			31,085			7,381			123,301			77,542			30,704			7,611			115,857			7,444			6
Interest-earning assets		63,449			54,666			28,699			146,814			60,743			51,572			28,984			141,299			5,515			4
KEY METRICS
Net interest margin³		5.02	%		2.68	%		NM			3.14	%		5.04	%		2.90	%		NM			3.21	%		(7	) bps
Efficiency ratio		65.72			41.38			NM			59.28			67.47			39.80			NM			59.06			22	bps
Loans-to-deposits ratio (period-end balances)		74.15			165.24			NM			95.03			76.02			172.27			NM			97.56			(253	) bps
Loans-to-deposits ratio (average balances)		72.81			173.85			NM			95.62			77.42			166.09			NM			97.94			(232	) bps
Return on average total tangible assets		1.32			1.56			NM			1.15			1.23			1.77			NM			1.16			(1	) bps

²	Includes loans held for sale.

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING

(in millions, except ratio data)


	QUARTERLY TRENDS																											FULL YEAR
CONSUMER BANKING																4Q19 Change																		2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19						4Q18						2019			2018			2018
																$/bps			%			$/bps			%									$/bps			%
Net interest income	$	796		$	799		$	799		$	788		$	796		($	3	)		—	%	$	—			—	%	$	3,182		$	3,064		$	118			4	%
Noninterest income		296			336			277			247			265			(40	)		(12	)		31			12			1,156			973			183			19

Total revenue		1,092			1,135			1,076			1,035			1,061			(43	)		(4	)		31			3			4,338			4,037			301			7
Noninterest expense		718			718			715			700			723			—			—			(5	)		(1	)		2,851			2,723			128			5

Profit before provision for credit losses		374			417			361			335			338			(43	)		(10	)		36			11			1,487			1,314			173			13
Provision for credit losses		97			83			78			67			80			14			17			17			21			325			289			36			12

Income before income tax expense		277			334			283			268			258			(57	)		(17	)		19			7			1,162			1,025			137			13
Income tax expense		68			83			70			66			65			(15	)		(18	)		3			5			287			258			29			11

Net income	$	209		$	251		$	213		$	202		$	193		($	42	)		(17	%)	$	16			8	%	$	875		$	767		$	108			14	%

AVERAGE BALANCES
Total assets	$	68,069		$	66,365		$	65,485		$	65,007		$	64,187		$	1,704			3	%	$	3,882			6	%	$	66,240		$	62,444		$	3,796			6	%
Total loans and leases¹		65,157			63,553			62,678			62,163			61,920			1,604			3			3,237			5			63,396			60,691			2,705			4
Deposits		85,477			85,595			85,660			82,569			79,174			(118	)		—			6,303			8			84,835			77,542			7,293			9
Interest-earning assets		65,208			63,605			62,731			62,216			61,975			1,603			3			3,233			5			63,449			60,743			2,706			4
KEY METRICS
Net interest margin		4.85	%		4.99	%		5.11	%		5.14	%		5.09	%		(14	) bps					(24	) bps					5.02	%		5.04	%		(2	) bps
Efficiency ratio		65.74			63.28			66.43			67.62			68.22			246	bps					(248	) bps					65.72			67.47			(175	) bps
Loans-to-deposits ratio (period-end balances)		74.15			73.61			71.13			71.17			76.02			54	bps					(187	) bps					74.15			76.02			(187	) bps
Loans-to-deposits ratio (average balances)		73.37			72.11			71.57			74.27			76.91			126	bps					(354	) bps					72.81			77.42			(461	) bps
Return on average total tangible assets		1.22			1.50			1.31			1.26			1.19			(28	) bps					3	bps					1.32			1.23			9	bps

¹	Includes loans held for sale.

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS																											FULL YEAR
																4Q19 Change																		2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19						4Q18						2019			2018			2018
																$/bps			%			$/bps			%									$/bps			%
MORTGAGE BANKING FEES
Production revenue	$	61		$	80		$	49		$	31		$	29		($	19	)		(24	%)	$	32			110	%	$	221		$	93		$	128			138	%
Mortgage servicing revenue		16			12			9			14			21			4			33			(5	)		(24	)		51			53			(2	)		(4	)
MSR valuation changes, net of hedge impact		4			25			4			(2	)		6			(21	)		(84	)		(2	)		(33	)		31			11			20			182

Total mortgage banking fees	$	81		$	117		$	62		$	43		$	56		($	36	)		(31	%)	$	25			45	%	$	303		$	157		$	146			93	%

Gain on sale of secondary originations		0.98	%		1.40	%		1.13	%		1.28	%		0.82	%		(42	) bps					16	bps					1.18	%		1.10	%		8	bps

RESIDENTIAL REAL ESTATE ORIGINATIONS
Retail	$	3,196		$	2,771		$	2,115		$	1,313		$	1,693		$	425			15	%	$	1,503			89	%	$	9,395		$	6,728		$	2,667			40	%
Third Party		5,750			5,080			3,921			2,260			2,880			670			13			2,870			100			17,011			5,058			11,953			236

Total	$	8,946		$	7,851		$	6,036		$	3,573		$	4,573		$	1,095			14	%	$	4,373			96	%	$	26,406		$	11,786		$	14,620			124	%

Originated for sale		80	%		80	%		81	%		81	%		80	%		—	bps					—	bps					80	%		68	%		1,200	bps
Originated for investment		20			20			19			19			20			—	bps					—	bps					20			32			(1,200	) bps

Total		100	%		100	%		100	%		100	%		100	%														100	%		100	%

MORTGAGE SERVICING INFORMATION (UPB)
Loans serviced for others	$	77,526		$	74,610		$	72,518		$	70,847		$	69,593		$	2,916			4	%	$	7,933			11	%	$	77,526		$	69,593		$	7,933			11	%
Owned loans serviced		20,831			19,969			19,258			18,437			18,298			862			4			2,533			14			20,831			18,298			2,533			14

Total	$	98,357		$	94,579		$	91,776		$	89,284		$	87,891		$	3,778			4	%	$	10,466			12	%	$	98,357		$	87,891		$	10,466			12	%

MSR CARRYING VALUE
MSR at fair value	$	642		$	510		$	531		$	563		$	600		$	132			26	%	$	42			7	%	$	642		$	600		$	42			7	%
MSR at lower of cost or market		182			177			189			212			221			5			3			(39	)		(18	)		182			221			(39	)		(18	)

Total	$	824		$	687		$	720		$	775		$	821		$	137			20	%	$	3			—	%	$	824		$	821		$	3			—	%

SEGMENT FINANCIAL HIGHLIGHTS - COMMERCIAL BANKING

(in millions, except ratio data)


	QUARTERLY TRENDS																											FULL YEAR
COMMERCIAL BANKING																4Q19 Change																		2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19						4Q18						2019			2018			2018
																$/bps			%			$/bps			%									$/bps			%
Net interest income	$	363		$	360		$	371		$	372		$	384		$	3			1	%	($	21	)		(5	%)	$	1,466		$	1,497		($	31	)		(2	%)
Noninterest income		175			133			149			150			140			42			32			35			25			607			545			62			11

Total revenue		538			493			520			522			524			45			9			14			3			2,073			2,042			31			2
Noninterest expense		219			213			217			209			203			6			3			16			8			858			813			45			6

Profit before provision for credit losses		319			280			303			313			321			39			14			(2	)		(1	)		1,215			1,229			(14	)		(1	)
Provision for credit losses		24			27			25			21			7			(3	)		(11	)		17			243			97			26			71			NM

Income before income tax expense		295			253			278			292			314			42			17			(19	)		(6	)		1,118			1,203			(85	)		(7	)
Income tax expense		64			57			62			65			73			7			12			(9	)		(12	)		248			276			(28	)		(10	)

Net income	$	231		$	196		$	216		$	227		$	241		$	35			18	%	($	10	)		(4	%)	$	870		$	927		($	57	)		(6	%)

AVERAGE BALANCES
Total assets	$	56,407		$	55,614		$	56,135		$	55,630		$	53,970		$	793			1	%	$	2,437			5	%	$	55,947		$	52,362		$	3,585			7	%
Total loans and leases¹		54,523			53,814			54,653			54,436			52,963			709			1			1,560			3			54,355			51,344			3,011			6
Deposits		32,715			31,491			30,273			29,823			30,608			1,224			4			2,107			7			31,085			30,704			381			1
Interest-earning assets		54,905			54,087			54,950			54,724			53,221			818			2			1,684			3			54,666			51,572			3,094			6
KEY METRICS
Net interest margin		2.62	%		2.64	%		2.71	%		2.76	%		2.86	%		(2	) bps					(24	) bps					2.68	%		2.90	%		(22	) bps
Efficiency ratio		40.60			43.35			41.58			40.11			38.73			(275	) bps					187	bps					41.38			39.80			158	bps
Loans-to-deposits ratio (period-end balances)		165.24			163.62			173.48			180.53			172.27			162	bps					(703	) bps					165.24			172.27			(703	) bps
Loans-to-deposits ratio (average balances)		165.80			170.01			179.49			181.23			172.07			(421	) bps					(627	) bps					173.85			166.09			776	bps
Return on average total tangible assets		1.63			1.40			1.54			1.66			1.78			23	bps					(15	) bps					1.56			1.77			(21	) bps

¹	Includes loans held for sale.

SEGMENT FINANCIAL HIGHLIGHTS - OTHER

(in millions)


	QUARTERLY TRENDS																											FULL YEAR
OTHER¹																4Q19 Change																		2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19						4Q18						2019			2018			2018
																$			%			$			%									$			%
Net interest income	($	16	)	($	14	)	($	4	)	$	—		($	8	)	($	2	)		(14	%)	($	8	)		(100	%)	($	34	)	($	29	)	($	5	)		(17	%)
Noninterest income		23			24			36			31			16			(1	)		(4	)		7			44			114			78			36			46

Total revenue		7			10			32			31			8			(3	)		(30	)		(1	)		(13	)		80			49			31			63
Noninterest expense		49			42			19			28			25			7			17			24			96			138			83			55			66

(Loss) profit before provision for credit losses		(42	)		(32	)		13			3			(17	)		(10	)		(31	)		(25	)		(147	)		(58	)		(34	)		(24	)		(71	)
Provision for credit losses		(11	)		(9	)		(6	)		(3	)		(2	)		(2	)		(22	)		(9	)		NM			(29	)		11			(40	)		NM

(Loss) income before income tax benefit		(31	)		(23	)		19			6			(15	)		(8	)		(35	)		(16	)		(107	)		(29	)		(45	)		16			36
Income tax benefit		(41	)		(25	)		(5	)		(4	)		(46	)		(16	)		(64	)		5			11			(75	)		(72	)		(3	)		(4	)

Net income	$	10		$	2		$	24		$	10		$	31		$	8			NM		($	21	)		(68	%)	$	46		$	27		$	19			70	%

AVERAGE BALANCES
Total assets	$	40,170		$	40,131		$	39,869		$	39,778		$	39,575		$	39			—	%	$	595			2	%	$	39,989		$	39,747		$	242			1	%
Total loans and leases²		1,951			1,994			2,138			2,276			2,334			(43	)		(2	)		(383	)		(16	)		2,089			2,446			(357	)		(15	)
Deposits		7,460			6,835			7,219			8,022			7,983			625			9			(523	)		(7	)		7,381			7,611			(230	)		(3	)
Interest-earning assets		28,798			28,783			28,642			28,573			28,574			15			—			224			1			28,699			28,984			(285	)		(1	)

²	Includes loans held for sale.

CREDIT-RELATED INFORMATION

(in millions, except ratio data)


	AS OF															DECEMBER 31, 2019 CHANGE
	Dec 31, 2019			Sept 30, 2019			June 30, 2019			Mar 31, 2019			Dec 31, 2018			Sept 30, 2019						Dec 31, 2018
																$/bps			%			$/bps			%
NONPERFORMING ASSETS
Commercial	$	240		$	228		$	198		$	208		$	194		$	12			5	%	$	46			24	%
Commercial real estate		2			49			4			4			7			(47	)		(96	)		(5	)		(71	)
Leases		3			4			17			—			—			(1	)		(25	)		3			100

Total commercial loans and leases		245			281			219			212			201			(36	)		(13	)		44			22
Residential mortgages¹		93			91			98			102			105			2			2			(12	)		(11	)
Home equity loans		33			36			38			42			50			(3	)		(8	)		(17	)		(34	)
Home equity lines of credit		187			184			210			217			231			3			2			(44	)		(19	)
Home equity loans serviced by others		14			14			16			15			17			—			—			(3	)		(18	)
Home equity lines of credit serviced by others		12			13			14			14			15			(1	)		(8	)		(3	)		(20	)
Automobile		67			69			62			70			81			(2	)		(3	)		(14	)		(17	)
Education		18			17			40			43			38			1			6			(20	)		(53	)
Credit card		22			21			20			22			20			1			5			2			10
Other retail		12			11			10			7			8			1			9			4			50

Total retail loans		458			456			508			532			565			2			—			(107	)		(19	)

Nonperforming loans and leases		703			737			727			744			766			(34	)		(5	)		(63	)		(8	)

Other nonperforming assets - Retail		45			40			32			34			34			5			13			11			32

Nonperforming assets	$	748		$	777		$	759		$	778		$	800		($	29	)		(4	%)	($	52	)		(7	%)

NONPERFORMING ASSETS BY PRODUCT
Commercial	$	245		$	281		$	219		$	212		$	201		($	36	)		(13	%)	$	44			22	%
Retail		503			496			540			566			599			7			1			(96	)		(16	)

Total nonperforming assets	$	748		$	777		$	759		$	778		$	800		($	29	)		(4	%)	($	52	)		(7	%)


ASSET QUALITY RATIOS
Allowance for loan and lease losses to loans and leases		1.05	%		1.07	%		1.05	%		1.06	%		1.06	%		(2	) bps					(1	) bps
Allowance for loan and lease losses to nonperforming loans and leases		177.99			171.39			168.80			167.36			162.20			660						1,579
Nonperforming loans and leases to loans and leases		0.59			0.63			0.62			0.63			0.66			(4	)					(7	)
Nonperforming assets to total assets		0.45			0.47			0.47			0.48			0.50			(2	)					(5	)

Beginning in the fourth quarter of 2019, nonperforming balances exclude both fully and partially guaranteed residential mortgage loans sold to Ginnie Mae for which the Company has the right, but not the obligation, to repurchase. Prior periods have been adjusted to exclude partially guaranteed amounts to conform with the current period presentation.

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS																											FULL YEAR
																4Q19 Change																		2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19						4Q18						2019			2018			2018
																$			%			$			%									$			%
CHARGE-OFFS, RECOVERIES AND RELATED RATIOS
GROSS CHARGE-OFFS
Commercial	$	24		$	20		$	40		$	3		$	17		$	4			20	%	$	7			41	%	$	87		$	48		$	39			81	%
Commercial real estate		9			10			—			20			—			(1	)		(10	)		9			100			39			4			35			NM
Leases		1			5			5			3			—			(4	)		(80	)		1			100			14			—			14			100

Total commercial loans and leases		34			35			45			26			17			(1	)		(3	)		17			100			140			52			88			169
Residential mortgages		2			2			2			2			2			—			—			—			—			8			8			—			—
Home equity loans		—			1			3			1			1			(1	)		(100	)		(1	)		(100	)		5			6			(1	)		(17	)
Home equity lines of credit		7			7			7			5			6			—			—			1			17			26			26			—			—
Home equity loans serviced by others		2			2			1			1			3			—			—			(1	)		(33	)		6			9			(3	)		(33	)
Home equity lines of credit serviced by others		1			1			—			—			1			—			—			—			—			2			4			(2	)		(50	)
Automobile		38			37			30			38			37			1			3			1			3			143			158			(15	)		(9	)
Education		20			18			18			16			17			2			11			3			18			72			68			4			6
Credit card		21			20			21			19			17			1			5			4			24			81			68			13			19
Other retail		37			36			29			30			30			1			3			7			23			132			95			37			39

Total retail loans		128			124			111			112			114			4			3			14			12			475			442			33			7

Total gross charge-offs	$	162		$	159		$	156		$	138		$	131		$	3			2	%	$	31			24	%	$	615		$	494		$	121			24	%

GROSS RECOVERIES
Commercial	$	7		$	3		$	12		$	2		$	6		$	4			133	%	$	1			17	%	$	24		$	15		$	9			60	%
Commercial real estate		—			—			—			—			3			—			—			(3	)		(100	)		—			4			(4	)		(100	)
Leases		—			—			—			—			—			—			—			—			—			—			—			—			—

Total commercial loans and leases		7			3			12			2			9			4			133			(2	)		(22	)		24			19			5			26
Residential mortgages		1			1			2			5			1			—			—			—			—			9			5			4			80
Home equity loans		2			2			2			4			2			—			—			—			—			10			11			(1	)		(9	)
Home equity lines of credit		3			5			4			9			4			(2	)		(40	)		(1	)		(25	)		21			16			5			31
Home equity loans serviced by others		4			4			3			3			4			—			—			—			—			14			15			(1	)		(7	)
Home equity lines of credit serviced by others		1			1			1			1			2			—			—			(1	)		(50	)		4			7			(3	)		(43	)
Automobile		11			15			16			15			15			(4	)		(27	)		(4	)		(27	)		57			67			(10	)		(15	)
Education		4			4			4			4			4			—			—			—			—			16			16			—			—
Credit card		3			2			2			2			2			1			50			1			50			9			8			1			13
Other retail		4			9			4			4			3			(5	)		(56	)		1			33			21			13			8			62

Total retail loans		33			43			38			47			37			(10	)		(23	)		(4	)		(11	)		161			158			3			2

Total gross recoveries	$	40		$	46		$	50		$	49		$	46		($	6	)		(13	%)	($	6	)		(13	%)	$	185		$	177		$	8			5	%

NET CHARGE-OFFS (RECOVERIES)
Commercial	$	17		$	17		$	28		$	1		$	11		$	—			—	%	$	6			55	%	$	63		$	33		$	30			91	%
Commercial real estate		9			10			—			20			(3	)		(1	)		(10	)		12			NM			39			—			39			100
Leases		1			5			5			3			—			(4	)		(80	)		1			100			14			—			14			100

Total commercial loans and leases		27			32			33			24			8			(5	)		(16	)		19			238			116			33			83			NM
Residential mortgages		1			1			—			(3	)		1			—			—			—			—			(1	)		3			(4	)		NM
Home equity loans		(2	)		(1	)		1			(3	)		(1	)		(1	)		(100	)		(1	)		(100	)		(5	)		(5	)		—			—
Home equity lines of credit		4			2			3			(4	)		2			2			100			2			100			5			10			(5	)		(50	)
Home equity loans serviced by others		(2	)		(2	)		(2	)		(2	)		(1	)		—			—			(1	)		(100	)		(8	)		(6	)		(2	)		(33	)
Home equity lines of credit serviced by others		—			—			(1	)		(1	)		(1	)		—			—			1			100			(2	)		(3	)		1			33
Automobile		27			22			14			23			22			5			23			5			23			86			91			(5	)		(5	)
Education		16			14			14			12			13			2			14			3			23			56			52			4			8
Credit card		18			18			19			17			15			—			—			3			20			72			60			12			20
Other retail		33			27			25			26			27			6			22			6			22			111			82			29			35

Total retail loans		95			81			73			65			77			14			17			18			23			314			284			30			11

Total net charge-offs	$	122		$	113		$	106		$	89		$	85		$	9			8	%	$	37			44	%	$	430		$	317		$	113			36	%

CREDIT-RELATED INFORMATION, CONTINUED

(in millions, except rates)


	QUARTERLY TRENDS																											FULL YEAR
																4Q19 Change																		2019 Change
	4Q19			3Q19			2Q19			1Q19			4Q18			3Q19						4Q18						2019			2018			2018
																$/bps			%			$/bps			%									$/bps			%
ANNUALIZED NET CHARGE-OFF (RECOVERY) RATES
Commercial		0.16	%		0.16	%		0.27	%		0.01	%		0.11	%		— bps						5 bps						0.15	%		0.08	%		7 bps
Commercial real estate		0.26			0.31			—			0.62			(0.11	)		(5) bps						37 bps						0.29			—			29 bps
Leases		0.19			0.80			0.72			0.42			—			(61) bps						19 bps						0.53			—			53 bps
Total commercial loans and leases		0.19			0.22			0.23			0.17			0.05			(3) bps						14 bps						0.20			0.06			14 bps
Residential mortgages		0.02			0.01			0.01			(0.07	)		0.01			1 bps						1 bps						—			0.01			(1) bps
Home equity loans		(0.67	)		(0.59	)		0.33			(1.32	)		(0.21	)		(8) bps						(46) bps						(0.57	)		(0.34	)		(23) bps
Home equity lines of credit		0.13			0.08			0.07			(0.11	)		0.07			5 bps						6 bps						0.04			0.08			(4) bps
Home equity loans serviced by others		(2.34	)		(2.91	)		(2.26	)		(1.70	)		(1.45	)		57 bps						(89) bps						(2.28	)		(1.38	)		(90) bps
Home equity lines of credit serviced by others		0.27			(1.37	)		(3.07	)		(2.52	)		(3.87	)		164 bps						414 bps						(1.78	)		(2.81	)		103 bps
Automobile		0.85			0.74			0.49			0.77			0.71			11 bps						14 bps						0.71			0.73			(2) bps
Education		0.65			0.58			0.62			0.51			0.59			7 bps						6 bps						0.59			0.61			(2) bps
Credit card		3.35			3.35			3.71			3.33			3.09			— bps						26 bps						3.43			3.18			25 bps
Other retail		2.96			2.93			2.78			2.91			3.07			3 bps						(11) bps						2.90			2.63			27 bps
Total retail loans		0.61			0.53			0.49			0.44			0.51			8 bps						10 bps						0.52			0.48			4 bps
Total loans and leases		0.41	%		0.38	%		0.36	%		0.31	%		0.29	%		3 bps						12 bps						0.36	%		0.28	%		8 bps
Memo: Average loans
Commercial	$	42,012		$	41,476		$	41,755		$	41,562		$	40,472		$	536			1	%	$	1,540			4	%	$	41,702		$	39,363		$	2,339			6	%
Commercial real estate		13,103			12,892			13,379			13,272			12,900			211			2			203			2			13,160			12,299			861			7
Leases		2,546			2,615			2,745			2,873			2,938			(69	)		(3	)		(392	)		(13	)		2,694			3,038			(344	)		(11	)

Total commercial loans and leases		57,661			56,983			57,879			57,707			56,310			678			1			1,351			2			57,556			54,700			2,856			5
Residential mortgages		19,495			19,405			19,232			19,094			18,713			90			—			782			4			19,308			17,883			1,425			8
Home equity loans		843			906			971			1,039			1,101			(63	)		(7	)		(258	)		(23	)		939			1,215			(276	)		(23	)
Home equity lines of credit		12,045			12,182			12,332			12,552			12,790			(137	)		(1	)		(745	)		(6	)		12,276			13,043			(767	)		(6	)
Home equity loans serviced by others		301			330			359			385			411			(29	)		(9	)		(110	)		(27	)		343			463			(120	)		(26	)
Home equity lines of credit serviced by others		76			83			92			99			108			(7	)		(8	)		(32	)		(30	)		87			124			(37	)		(30	)
Automobile		12,099			12,036			11,984			12,070			12,179			63			1			(80	)		(1	)		12,047			12,555			(508	)		(4	)
Education		9,888			9,459			9,235			9,069			8,801			429			5			1,087			12			9,415			8,486			929			11
Credit card		2,188			2,103			2,041			1,998			1,973			85			4			215			11			2,083			1,891			192			10
Other retail		4,309			3,770			3,658			3,636			3,507			539			14			802			23			3,846			3,113			733			24

Total retail loans		61,244			60,274			59,904			59,942			59,583			970			2			1,661			3			60,344			58,773			1,571			3

Total loans and leases	$	118,905		$	117,257		$	117,783		$	117,649		$	115,893		$	1,648			1	%	$	3,012			3	%	$	117,900		$	113,473		$	4,427			4	%

CREDIT-RELATED INFORMATION, CONTINUED

(in millions)


	QUARTERLY TRENDS																										FULL YEAR
															4Q19 Change																	2019 Change
	4Q19			3Q19			2Q19		1Q19			4Q18			3Q19						4Q18						2019			2018		2018
															$			%			$			%								$			%
SUMMARY OF CHANGES IN THE COMPONENTS OF THE ALLOWANCE FOR CREDIT LOSSES
Allowance for loan and lease losses - beginning	$	1,263		$	1,227		$	1,245	$	1,242		$	1,242		$	36			3	%	$	21			2	%	$	1,242		$	1,236	$	6			—	%
Charge-offs:
Commercial		34			35			45		26			17			(1	)		(3	)		17			100			140			52		88			169
Retail		128			124			111		112			114			4			3			14			12			475			442		33			7

Total charge-offs		162			159			156		138			131			3			2			31			24			615			494		121			24
Recoveries:
Commercial		7			3			12		2			9			4			133			(2	)		(22	)		24			19		5			26
Retail		33			43			38		47			37			(10	)		(23	)		(4	)		(11	)		161			158		3			2

Total recoveries		40			46			50		49			46			(6	)		(13	)		(6	)		(13	)		185			177		8			5

Net charge-offs		122			113			106		89			85			9			8			37			44			430			317		113			36
Provision for loan and lease losses:
Commercial		(11	)		64			22		25			(9	)		(75	)		NM			(2	)		(22	)		100			38		62			163
Retail		122			85			66		67			94			37			44			28			30			340			285		55			19

Total provision for loan and lease losses		111			149			88		92			85			(38	)		(26	)		26			31			440			323		117			36

Allowance for loan and lease losses - ending	$	1,252		$	1,263		$	1,227	$	1,245		$	1,242		($	11	)		(1	%)	$	10			1	%	$	1,252		$	1,242	$	10			1	%

Reserve for unfunded lending commitments - beginning	$	45		$	93		$	84	$	91		$	91		($	48	)		(52	%)	($	46	)		(51	%)	$	91		$	88	$	3			3	%
Provision for unfunded lending commitments		(1	)		(48	)		9		(7	)		—			47			98			(1	)		(100	)		(47	)		3		(50	)		NM

Reserve for unfunded lending commitments - ending	$	44		$	45		$	93	$	84		$	91		($	1	)		(2	%)	($	47	)		(52	%)	$	44		$	91	($	47	)		(52	%)

Total allowance for credit losses - ending	$	1,296		$	1,308		$	1,320	$	1,329		$	1,333		($	12	)		(1	%)	($	37	)		(3	%)	$	1,296		$	1,333	($	37	)		(3	%)

Memo: Total allowance for credit losses by product
Commercial	$	718		$	757		$	773	$	775		$	781		($	39	)		(5	%)	($	63	)		(8	%)	$	718		$	781	($	63	)		(8	%)
Retail		578			551			547		554			552			27			5			26			5			578			552		26			5

Total allowance for credit losses	$	1,296		$	1,308		$	1,320	$	1,329		$	1,333		($	12	)		(1	%)	($	37	)		(3	%)	$	1,296		$	1,333	($	37	)		(3	%)

CAPITAL AND RATIOS

(in millions, except ratio data)


	AS OF																											FULL YEAR
																DECEMBER 31, 2019 CHANGE																2019 Change
	Dec 31, 2019			Sept 30, 2019			June 30, 2019			Mar 31, 2019			Dec 31, 2018			Sept 30, 2019						Dec 31, 2018						2019		2018		2018
																$			%			$			%							$		%
CAPITAL RATIOS AND COMPONENTS (PRELIMINARY)
CET1 capital	$	14,304		$	14,416		$	14,629		$	14,442		$	14,485		($	112	)		(1	%)	($	181	)		(1	%)
Tier 1 capital		15,874			15,549			15,762			15,574			15,325			325			2			549			4
Total capital		18,542			18,237			18,582			18,403			18,157			305			2			385			2
Risk-weighted assets		142,915			140,136			138,879			137,246			136,202			2,779			2			6,713			5
Adjusted average assets¹		158,782			156,355			155,956			155,171			153,026			2,427			2			5,756			4
CET1 capital ratio		10.0	%		10.3	%		10.5	%		10.5	%		10.6	%
Tier 1 capital ratio		11.1			11.1			11.3			11.3			11.3
Total capital ratio		13.0			13.0			13.4			13.4			13.3
Tier 1 leverage ratio		10.0			9.9			10.1			10.0			10.0
TANGIBLE COMMON EQUITY (PERIOD-END)
Common stockholders’ equity	$	20,631		$	20,718		$	20,884		$	20,399		$	19,977		($	87	)		—	%	$	654			3	%	$	20,631	$	19,977	$	654		3	%
Less: Goodwill		7,044			7,044			7,040			7,040			6,923			—			—			121			2			7,044		6,923		121		2
Less: Other intangible assets		68			71			74			80			31			(3	)		(4	)		37			119			68		31		37		119
Add: Deferred tax liabilities²		374			373			371			370			366			1			—			8			2			374		366		8		2

Total tangible common equity	$	13,893		$	13,976		$	14,141		$	13,649		$	13,389		($	83	)		(1	%)	$	504			4	%	$	13,893	$	13,389	$	504		4	%

TANGIBLE COMMON EQUITY (AVERAGE)
Common stockholders’ equity	$	20,400		$	20,533		$	20,420		$	19,942		$	19,521		($	133	)		(1	%)	$	879			5	%	$	20,325	$	19,645	$	680		3	%
Less: Goodwill		7,044			7,044			7,040			7,018			6,946			—			—			98			1			7,036		6,912		124		2
Less: Other intangible assets		69			73			80			59			32			(4	)		(5	)		37			116			71		14		57		NM
Add: Deferred tax liabilities²		373			372			370			368			364			1			—			9			2			371		359		12		3

Total tangible common equity	$	13,660		$	13,788		$	13,670		$	13,233		$	12,907		($	128	)		(1	%)	$	753			6	%	$	13,589	$	13,078	$	511		4	%

INTANGIBLE ASSETS (PERIOD-END)
Goodwill	$	7,044		$	7,044		$	7,040		$	7,040		$	6,923		$	—			—	%	$	121			2	%	$	7,044	$	6,923	$	121		2	%
Other intangible assets		68			71			74			80			31			(3	)		(4	)		37			119			68		31		37		119

Total intangible assets	$	7,112		$	7,115		$	7,114		$	7,120		$	6,954		($	3	)		—	%	$	158			2	%	$	7,112	$	6,954	$	158		2	%

Adjusted average assets include quarterly average assets, less deductions for disallowed goodwill and other intangible 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.

²	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

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

Key Performance Metrics:

Our Management uses certain key performance metrics (KPMs) to gauge our progress against strategic and operational goals, as well as to compare our performance against peers. The KPMs are referred to in our quarterly earnings materials and other financial reports filed with the Securities and Exchange Commission. The KPMs include:

•

Return on average tangible common equity (ROTCE);

•

Efficiency ratio;

•

Operating leverage; and

•

Common equity tier 1 capital ratio.

Established targets for the KPMs are based on Management-reporting results which are currently referred to by the Company as “Underlying” results. We believe that Underlying results, which exclude notable items, provide the best representation of our underlying financial progress toward the KPMs as the results exclude items that our Management does not consider indicative of our on-going financial performance. KPMs that reflect Underlying results are considered non-GAAP financial measures.

Non-GAAP Financial Measures

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

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

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

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


		QUARTERLY TRENDS																											FULL YEAR
																	4Q19 Change																		2019 Change
		4Q19			3Q19			2Q19			1Q19			4Q18			3Q19						4Q18						2019			2018			2018
																	$			%			$			%									$			%
Noninterest income, Underlying:
Noninterest income (GAAP)	A	$	494		$	493		$	462		$	428		$	421		$	1			—	%	$	73			17	%	$	1,877		$	1,596		$	281			18	%
Less: Notable items			—			—			—			—			(5	)		—			—			5			100			—			(5	)		5			100

Noninterest income, Underlying (non-GAAP)	B	$	494		$	493		$	462		$	428		$	426		$	1			—	%	$	68			16	%	$	1,877		$	1,601		$	276			17	%

Total revenue, Underlying:
Total revenue (GAAP)	C	$	1,637		$	1,638		$	1,628		$	1,588		$	1,593		($	1	)		—	%	$	44			3	%	$	6,491		$	6,128		$	363			6	%
Less: Notable items			—			—			—			—			(5	)		—			—			5			100			—			(5	)		5			100

Total revenue, Underlying (non-GAAP)	D	$	1,637		$	1,638		$	1,628		$	1,588		$	1,598		($	1	)		—	%	$	39			2	%	$	6,491		$	6,133		$	358			6	%

Noninterest expense, Underlying:
Noninterest expense (GAAP)	E	$	986		$	973		$	951		$	937		$	951		$	13			1	%	$	35			4	%	$	3,847		$	3,619		$	228			6	%
Less: Notable items			37			19			7			5			45			18			95			(8	)		(18	)		68			54			14			26

Noninterest expense, Underlying (non-GAAP)	F	$	949		$	954		$	944		$	932		$	906		($	5	)		(1	%)	$	43			5	%	$	3,779		$	3,565		$	214			6	%

Pre-provision profit:
Total revenue (GAAP)	C	$	1,637		$	1,638		$	1,628		$	1,588		$	1,593		($	1	)		—	%	$	44			3	%	$	6,491		$	6,128		$	363			6	%
Less: Noninterest expense (GAAP)	E		986			973			951			937			951			13			1			35			4			3,847			3,619			228			6

Pre-provision profit (GAAP)		$	651		$	665		$	677		$	651		$	642		($	14	)		(2	%)	$	9			1	%	$	2,644		$	2,509		$	135			5	%

Pre-provision profit, Underlying:
Total revenue, Underlying (non-GAAP)	D	$	1,637		$	1,638		$	1,628		$	1,588		$	1,598		($	1	)		—	%	$	39			2	%	$	6,491		$	6,133		$	358			6	%
Less: Noninterest expense, Underlying (non-GAAP)	F		949			954			944			932			906			(5	)		(1	)		43			5			3,779			3,565			214			6

Pre-provision profit, Underlying (non-GAAP)		$	688		$	684		$	684		$	656		$	692		$	4			1	%	($	4	)		(1	%)	$	2,712		$	2,568		$	144			6	%

Income before income tax expense, Underlying:
Income before income tax expense (GAAP)	G	$	541		$	564		$	580		$	566		$	557		($	23	)		(4	%)	($	16	)		(3	%)	$	2,251		$	2,183		$	68			3	%
Less: Income (expense) before income tax expense (benefit) related to notable items			(37	)		(19	)		(7	)		(5	)		(50	)		(18	)		(95	)		13			26			(68	)		(59	)		(9	)		(15	)

Income before income tax expense, Underlying (non-GAAP)	H	$	578		$	583		$	587		$	571		$	607		($	5	)		(1	%)	($	29	)		(5	%)	$	2,319		$	2,242		$	77			3	%

Income tax expense, Underlying:
Income tax expense (benefit) (GAAP)	I	$	91		$	115		$	127		$	127		$	92		($	24	)		(21	%)	($	1	)		(1	%)	$	460		$	462		($	2	)		—	%
Less: Income tax expense (benefit) related to notable items			(33	)		(15	)		(2	)		(1	)		(41	)		(18	)		(120	)		8			20			(51	)		(43	)		(8	)		(19	)

Income tax expense, Underlying (non-GAAP)	J	$	124		$	130		$	129		$	128		$	133		($	6	)		(5	%)	($	9	)		(7	%)	$	511		$	505		$	6			1	%

Net income, Underlying:
Net income (GAAP)	K	$	450		$	449		$	453		$	439		$	465		$	1			—	%	($	15	)		(3	%)	$	1,791		$	1,721		$	70			4	%
Add: Notable items, net of income tax expense (benefit)			4			4			5			4			9			—			—			(5	)		(56	)		17			16			1			6

Net income, Underlying (non-GAAP)	L	$	454		$	453		$	458		$	443		$	474		$	1			—	%	($	20	)		(4	%)	$	1,808		$	1,737		$	71			4	%

Net income available to common stockholders, Underlying:
Net income available to common stockholders (GAAP)	M	$	427		$	432		$	435		$	424		$	450		($	5	)		(1	%)	($	23	)		(5	%)	$	1,718		$	1,692		$	26			2	%
Add: Notable items, net of income tax expense (benefit)			4			4			5			4			9			—			—			(5	)		(56	)		17			16			1			6

Net income available to common stockholders, Underlying (non-GAAP)	N	$	431		$	436		$	440		$	428		$	459		($	5	)		(1	%)	($	28	)		(6	%)	$	1,735		$	1,708		$	27			2	%

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

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


		QUARTERLY TRENDS																											FULL YEAR
																	4Q19 Change																		2019 Change
		4Q19			3Q19			2Q19			1Q19			4Q18			3Q19						4Q18						2019			2018			2018
																	$/bps			%			$/bps			%									$/bps			%
Operating leverage:
Total revenue (GAAP)	C	$	1,637		$	1,638		$	1,628		$	1,588		$	1,593		($	1	)		(0.14	%)	$	44			2.73	%	$	6,491		$	6,128		$	363			5.91	%
Less: Noninterest expense (GAAP)	E		986			973			951			937			951			13			1.33			35			3.74			3,847			3,619			228			6.30

Operating leverage																					(1.47	%)					(1.01	%)											(0.39	%)

Operating leverage, Underlying:
Total revenue, Underlying (non-GAAP)	D	$	1,637		$	1,638		$	1,628		$	1,588		$	1,598		($	1	)		(0.14	%)	$	39			2.41	%	$	6,491		$	6,133		$	358			5.83	%
Less: Noninterest expense, Underlying (non-GAAP)	F		949			954			944			932			906			(5	)		(0.49	)		43			4.79			3,779			3,565			214			6.00

Operating leverage, Underlying (non-GAAP)																					0.35	%					(2.38	%)											(0.17	%)

Efficiency ratio and efficiency ratio, Underlying:
Efficiency ratio	E/C		60.28	%		59.40	%		58.41	%		59.00	%		59.69	%		88	bps					59	bps					59.28	%		59.06	%		22	bps
Efficiency ratio, Underlying (non-GAAP)	F/D		58.02			58.22			58.02			58.67			56.70			(20	) bps					132	bps					58.23			58.13			10	bps
Noninterest income as a % of total revenue, Underlying:
Noninterest income as a % of total revenue	A/C		30	%		30	%		28	%		27	%		26	%		—	bps					400	bps					29	%		26	%		300	bps
Noninterest income as a % of total revenue, Underlying	B/D		30			30			28			27			27			—	bps					300	bps					29			26			300	bps
Effective income tax rate and effective income tax rate, Underlying:
Effective income tax rate	I/G		16.76	%		20.46	%		21.86	%		22.42	%		16.45	%		(370	) bps					31	bps					20.43	%		21.16	%		(73	) bps
Effective income tax rate, Underlying (non-GAAP)	J/H		21.52			22.29			21.89			22.44			21.91			(77	) bps					(39	) bps					22.03			22.55			(52	) bps
Return on average common equity and return on average common equity, Underlying:
Average common equity (GAAP)	O	$	20,400		$	20,533		$	20,420		$	19,942		$	19,521		($	133	)		(1	%)	$	879			5	%	$	20,325		$	19,645		$	680			3	%
Return on average common equity	M/O		8.30	%		8.35	%		8.54	%		8.62	%		9.16	%		(5	) bps					(86	) bps					8.45	%		8.62	%		(17	) bps
Return on average common equity, Underlying (non-GAAP)	N/O		8.36			8.45			8.63			8.71			9.33			(9	) bps					(97	) bps					8.53			8.69			(16	) bps
Return on average tangible common equity and return on average tangible common equity, Underlying:
Average common equity (GAAP)	O	$	20,400		$	20,533		$	20,420		$	19,942		$	19,521		($	133	)		(1	%)	$	879			5	%	$	20,325		$	19,645		$	680			3	%
Less: Average goodwill (GAAP)			7,044			7,044			7,040			7,018			6,946			—			—			98			1			7,036			6,912			124			2
Less: Average other intangibles (GAAP)			69			73			80			59			32			(4	)		(5	)		37			116			71			14			57			NM
Add: Average deferred tax liabilities related to goodwill (GAAP)			373			372			370			368			364			1			—			9			2			371			359			12			3

Average tangible common equity	P	$	13,660		$	13,788		$	13,670		$	13,233		$	12,907		($	128	)		(1	%)	$	753			6	%	$	13,589		$	13,078		$	511			4	%

Return on average tangible common equity	M/P		12.39	%		12.44	%		12.75	%		13.00	%		13.85	%		(5	) bps					(146	) bps					12.64	%		12.94	%		(30	) bps
Return on average tangible common equity, Underlying (non-GAAP)	N/P		12.49			12.58			12.89			13.12			14.11			(9	) bps					(162	) bps					12.76			13.06			(30	) bps
Return on average total assets and return on average total assets, Underlying:
Average total assets (GAAP)	Q	$	164,646		$	162,110		$	161,489		$	160,415		$	157,732		$	2,536			2	%	$	6,914			4	%	$	162,176		$	154,553		$	7,623			5	%
Return on average total assets	K/Q		1.08	%		1.10	%		1.13	%		1.11	%		1.17	%		(2	) bps					(9	) bps					1.10	%		1.11	%		(1	) bps
Return on average total assets, Underlying (non-GAAP)	L/Q		1.09			1.11			1.14			1.12			1.19			(2	) bps					(10	) bps					1.11			1.12			(1	) bps

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

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


		QUARTERLY TRENDS																											FULL YEAR
																	4Q19 Change																		2019 Change
		4Q19			3Q19			2Q19			1Q19			4Q18			3Q19						4Q18						2019			2018			2018
																	$/bps			%			$/bps			%									$/bps			%
Return on average total tangible assets and return on average total tangible assets, Underlying:
Average total assets (GAAP)	Q	$	164,646		$	162,110		$	161,489		$	160,415		$	157,732		$	2,536			2	%	$	6,914			4	%	$	162,176		$	154,553		$	7,623			5	%
Less: Average goodwill (GAAP)			7,044			7,044			7,040			7,018			6,946			—			—			98			1			7,036			6,912			124			2
Less: Average other intangibles (GAAP)			69			73			80			59			32			(4	)		(5	)		37			116			71			14			57			NM
Add: Average deferred tax liabilities related to goodwill (GAAP)			373			372			370			368			364			1			—			9			2			371			359			12			3

Average tangible assets	R	$	157,906		$	155,365		$	154,739		$	153,706		$	151,118		$	2,541			2	%	$	6,788			4	%	$	155,440		$	147,986		$	7,454			5	%

Return on average total tangible assets	K/R		1.13	%		1.15	%		1.17	%		1.16	%		1.22	%		(2	) bps					(9	) bps					1.15	%		1.16	%		(1	) bps
Return on average total tangible assets, Underlying (non-GAAP)	L/R		1.14			1.16			1.19			1.17			1.24			(2	) bps					(10	) bps					1.16			1.17			(1	) bps
Tangible book value per common share:
Common shares - at period-end (GAAP)	S		433,121,083			443,913,525			457,903,826			461,116,723			466,007,984			(10,792,442	)		(2	%)		(32,886,901	)		(7	%)		433,121,083			466,007,984			(32,886,901)			(7%)
Common stockholders’ equity (GAAP)		$	20,631		$	20,718		$	20,884		$	20,399		$	19,977		($	87	)		—		$	654			3		$	20,631		$	19,977		$	654			3
Less: Goodwill (GAAP)			7,044			7,044			7,040			7,040			6,923			—			—			121			2			7,044			6,923			121			2
Less: Other intangible assets (GAAP)			68			71			74			80			31			(3	)		(4	)		37			119			68			31			37			119
Add: Deferred tax liabilities related to goodwill (GAAP)			374			373			371			370			366			1			—			8			2			374			366			8			2

Tangible common equity	T	$	13,893		$	13,976		$	14,141		$	13,649		$	13,389		($	83	)		(1	%)	$	504			4	%	$	13,893		$	13,389		$	504			4	%

Tangible book value per common share	T/S	$	32.08		$	31.48		$	30.88		$	29.60		$	28.73		$	0.60			2	%	$	3.35			12	%	$	32.08		$	28.73		$	3.35			12	%
Net income per average common share - basic and diluted and net income per average common share - basic and diluted, Underlying:
Average common shares outstanding - basic (GAAP)	U		434,684,606			445,703,987			458,154,335			460,713,172			467,338,825			(11,019,381	)		(2	%)		(32,654,219	)		(7	%)		449,731,453			478,822,072			(29,090,619	)		(6	%)
Average common shares outstanding - diluted (GAAP)	V		436,500,829			447,134,595			459,304,224			462,520,680			469,103,134			(10,633,766	)		(2	)		(32,602,305	)		(7	)		451,213,701			480,430,741			(29,217,040	)		(6	)
Net income per average common share - basic (GAAP)	M/U	$	0.98		$	0.97		$	0.95		$	0.92		$	0.96		$	0.01			1		$	0.02			2		$	3.82		$	3.54		$	0.28			8
Net income per average common share - diluted (GAAP)	M/V		0.98			0.97			0.95			0.92			0.96			0.01			1			0.02			2			3.81			3.52			0.29			8
Net income per average common share - basic, Underlying (non-GAAP)	N/U		0.99			0.98			0.96			0.93			0.98			0.01			1			0.01			1			3.86			3.57			0.29			8
Net income per average common share - diluted, Underlying (non-GAAP)	N/V		0.99			0.98			0.96			0.93			0.98			0.01			1			0.01			1			3.84			3.56			0.28			8
Dividend payout ratio and dividend payout ratio, Underlying:
Cash dividends declared and paid per common share	W	$	0.36		$	0.36		$	0.32		$	0.32		$	0.27		$	—			—	%	$	0.09			33	%	$	1.36		$	0.98		$	0.38			39	%
Dividend payout ratio	W/(M/U)		37	%		37	%		34	%		35	%		28	%		—	bps					900	bps					36	%		28	%		800	bps
Dividend payout ratio, Underlying (non-GAAP)	W/(N/U)		36			37			33			34			27			(100	) bps					900	bps					35			27			800	bps

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

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


	QUARTERLY TRENDS																							FULL YEAR
												4Q19 Change																	2019 Change
	4Q19		3Q19		2Q19		1Q19		4Q18			3Q19						4Q18						2019		2018			2018
												$			%			$			%								$/bps			%
Mortgage banking fees, Underlying:
Mortgage banking fees (GAAP)	$	80	$	117	$	62	$	43	$	51		($	37	)		(32	%)	$	29			57	%	$	302	$	152		$	150			99	%
Less: Notable items		—		—		—		—		(4	)		—			—			4			100			—		(4	)		4			100

Mortgage banking fees, Underlying (non-GAAP)	$	80	$	117	$	62	$	43	$	55		($	37	)		(32	%)	$	25			45	%	$	302	$	156		$	146			94	%

Other income, Underlying:
Other income (GAAP)	$	16	$	20	$	28	$	25	$	15		($	4	)		(20	%)	$	1			7	%	$	89	$	64		$	25			39	%
Less: Notable items		—		—		—		—		(1	)		—			—			1			100			—		(1	)		1			100

Other income, Underlying (non-GAAP)	$	16	$	20	$	28	$	25	$	16		($	4	)		(20	%)	$	—			—	%	$	89	$	65		$	24			37	%

Salaries and employee benefits, Underlying:
Salaries and employee benefits (GAAP)	$	502	$	508	$	507	$	509	$	483		($	6	)		(1	%)	$	19			4	%	$	2,026	$	1,880		$	146			8	%
Less: Notable items		6		5		2		1		6			1			20			—			—			14		11			3			27

Salaries and employee benefits, Underlying (non-GAAP)	$	496	$	503	$	505	$	508	$	477		($	7	)		(1	%)	$	19			4	%	$	2,012	$	1,869		$	143			8	%

Equipment and software expense, Underlying¹:
Equipment and software expense (GAAP)	$	133	$	130	$	126	$	125	$	124		$	3			2	%	$	9			7	%	$	514	$	464		$	50			11	%
Less: Notable items		3		—		—		—		3			3			100			—			—			3		3			—			—

Equipment and software expense, Underlying (non-GAAP)	$	130	$	130	$	126	$	125	$	121		$	—			—	%	$	9			7	%	$	511	$	461		$	50			11	%

Outside services, Underlying:
Outside services (GAAP)	$	142	$	128	$	118	$	110	$	135		$	14			11	%	$	7			5	%	$	498	$	447		$	51			11	%
Less: Notable items		20		14		5		4		19			6			43			1			5			43		20			23			115

Outside services, Underlying (non-GAAP)	$	122	$	114	$	113	$	106	$	116		$	8			7	%	$	6			5	%	$	455	$	427		$	28			7	%

Occupancy, Underlying:
Occupancy (GAAP)	$	88	$	80	$	82	$	83	$	92		$	8			10	%	($	4	)		(4	%)	$	333	$	333		$	—			—	%
Less: Notable items		8		—		—		—		16			8			100			(8	)		(50	)		8		16			(8	)		(50	)

Occupancy, Underlying (non-GAAP)	$	80	$	80	$	82	$	83	$	76		$	—			—	%	$	4			5	%	$	325	$	317		$	8			3	%

Other operating expense, Underlying:
Other operating expense (GAAP)	$	121	$	127	$	118	$	110	$	117		($	6	)		(5	%)	$	4			3	%	$	476	$	495		($	19	)		(4	%)
Less: Notable items		—		—		—		—		1			—			—			(1	)		(100	)		—		4			(4	)		(100	)

Other operating expense, Underlying (non-GAAP)	$	121	$	127	$	118	$	110	$	116		($	6	)		(5	%)	$	5			4	%	$	476	$	491		($	15	)		(3	%)

¹	Beginning in the first quarter of 2019, we combined our presentation of equipment expense and amortization of software into equipment and software expense. Prior periods have been adjusted to conform with the current period presentation.

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

(in millions, except ratio data)


		FOURTH QUARTER 2019												THIRD QUARTER 2019												SECOND QUARTER 2019
		Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income (loss) available to common stockholders:
Net income	A	$	209		$	231		$	10		$	450		$	251		$	196		$	2		$	449		$	213		$	216		$	24		$	453
Less: Preferred stock dividends			—			—			23			23			—			—			17			17			—			—			18			18

Net income (loss) available to common stockholders	B	$	209		$	231		($	13	)	$	427		$	251		$	196		($	15	)	$	432		$	213		$	216		$	6		$	435

Return on average total tangible assets:
Average total assets (GAAP)		$	68,069		$	56,407		$	40,170		$	164,646		$	66,365		$	55,614		$	40,131		$	162,110		$	65,485		$	56,135		$	39,869		$	161,489
Less: Average goodwill (GAAP)			122			46			6,876			7,044			122			46			6,876			7,044			119			45			6,876			7,040
Average other intangibles (GAAP)			63			6			—			69			66			7			—			73			73			7			—			80
Add: Average deferred tax liabilities related to goodwill (GAAP)			1			1			371			373			1			1			370			372			—			—			370			370

Average tangible assets	C	$	67,885		$	56,356		$	33,665		$	157,906		$	66,178		$	55,562		$	33,625		$	155,365		$	65,293		$	56,083		$	33,363		$	154,739

Return on average total tangible assets	A/C		1.22	%		1.63	%		NM			1.13	%		1.50	%		1.40	%		NM			1.15	%		1.31	%		1.54	%		NM			1.17	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$	718		$	219		$	49		$	986		$	718		$	213		$	42		$	973		$	715		$	217		$	19		$	951
Net interest income (GAAP)			796			363			(16	)		1,143			799			360			(14	)		1,145			799			371			(4	)		1,166
Noninterest income (GAAP)			296			175			23			494			336			133			24			493			277			149			36			462

Total revenue (GAAP)	E	$	1,092		$	538		$	7		$	1,637		$	1,135		$	493		$	10		$	1,638		$	1,076		$	520		$	32		$	1,628

Efficiency ratio	D/E		65.74	%		40.60	%		NM			60.28	%		63.28	%		43.35	%		NM			59.40	%		66.43	%		41.58	%		NM			58.41	%


		FIRST QUARTER 2019												FOURTH QUARTER 2018
		Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income (loss) available to common stockholders:
Net income	A	$	202		$	227		$	10		$	439		$	193		$	241		$	31		$	465
Less: Preferred stock dividends			—			—			15			15			—			—			15			15

Net income (loss) available to common stockholders	B	$	202		$	227		($	5	)	$	424		$	193		$	241		$	16		$	450

Return on average total tangible assets:
Average total assets (GAAP)		$	65,007		$	55,630		$	39,778		$	160,415		$	64,187		$	53,970		$	39,575		$	157,732
Less: Average goodwill (GAAP)			119			23			6,876			7,018			59			11			6,876			6,946
Average other intangibles (GAAP)			55			4			—			59			30			2			—			32
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			368			368			—			—			364			364

Average tangible assets	C	$	64,833		$	55,603		$	33,270		$	153,706		$	64,098		$	53,957		$	33,063		$	151,118

Return on average total tangible assets	A/C		1.26	%		1.66	%		NM			1.16	%		1.19	%		1.78	%		NM			1.22	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$	700		$	209		$	28		$	937		$	723		$	203		$	25		$	951
Net interest income (GAAP)			788			372			—			1,160			796			384			(8	)		1,172
Noninterest income (GAAP)			247			150			31			428			265			140			16			421

Total revenue (GAAP)	E	$	1,035		$	522		$	31		$	1,588		$	1,061		$	524		$	8		$	1,593

Efficiency ratio	D/E		67.62	%		40.11	%		NM			59.00	%		68.22	%		38.73	%		NM			59.69	%

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

(in millions, except ratio data)


		FULL YEAR
		2019												2018
		Consumer Banking			Commercial Banking			Other			Consolidated			Consumer Banking			Commercial Banking			Other			Consolidated
Net income (loss) available to common stockholders:
Net income	A	$	875		$	870		$	46		$	1,791		$	767		$	927		$	27		$	1,721
Less: Preferred stock dividends			—			—			73			73			—			—			29			29

Net income (loss) available to common stockholders	B	$	875		$	870		($	27	)	$	1,718		$	767		$	927		($	2	)	$	1,692

Return on average total tangible assets:
Average total assets (GAAP)		$	66,240		$	55,947		$	39,989		$	162,176		$	62,444		$	52,362		$	39,747		$	154,553
Less: Average goodwill (GAAP)			120			40			6,876			7,036			25			11			6,876			6,912
Average other intangibles (GAAP)			65			6			—			71			12			2			—			14
Add: Average deferred tax liabilities related to goodwill (GAAP)			—			—			371			371			—			—			359			359

Average tangible assets	C	$	66,055		$	55,901		$	33,484		$	155,440		$	62,407		$	52,349		$	33,230		$	147,986

Return on average total tangible assets	A/C		1.32	%		1.56	%		NM			1.15	%		1.23	%		1.77	%		NM			1.16	%
Efficiency ratio:
Noninterest expense (GAAP)	D	$	2,851		$	858		$	138		$	3,847		$	2,723		$	813		$	83		$	3,619
Net interest income (GAAP)			3,182			1,466			(34	)		4,614			3,064			1,497			(29	)		4,532
Noninterest income (GAAP)			1,156			607			114			1,877			973			545			78			1,596

Total revenue (GAAP)	E	$	4,338		$	2,073		$	80		$	6,491		$	4,037		$	2,042		$	49		$	6,128

Efficiency ratio	D/E		65.72	%		41.38	%		NM			59.28	%		67.47	%		39.80	%		NM			59.06	%

CITIZENS FINANCIAL GROUP INC/RI - FORM 8-K - EX-99.1 - February 3, 2020

Attached files

CITIZENS FINANCIAL GROUP INC/RI Reports