Third Quarter 2024 Earnings October 16, 2024
2 Disclaimers Non-GAAP Information Certain measures included in this document are “non-GAAP,” meaning they are not presented in accordance with generally accepted accounting principles in the U.S. and also are not codified in U.S. banking regulations currently applicable to FHN. FHN’s management believes such measures, even though not always comparable to non-GAAP measures used by other financial institutions, are relevant to understanding the financial condition, capital position, and financial results of FHN and its business segments. The non-GAAP measures presented in this document are listed, and are reconciled to the most comparable GAAP presentation, in the non-GAAP reconciliation table(s) appearing in the Appendix. In addition, presentation of regulatory measures, even those which are not GAAP, provide a meaningful base for comparability to other financial institutions subject to the same regulations as FHN. Although not GAAP terms, these regulatory measures are not considered “non-GAAP” under U.S. financial reporting rules as long as their presentation conforms to regulatory standards. Regulatory measures used in this document include: common equity tier 1 capital, generally defined as common equity less goodwill, other intangibles, and certain other required regulatory deductions; tier 1 capital, generally defined as the sum of core capital (including common equity and instruments that cannot be redeemed at the option of the holder) adjusted for certain items under risk-based capital regulations; and risk-weighted assets, which is a measure of total on- and off-balance sheet assets adjusted for credit and market risk, used to determine regulatory capital ratios. Forward-Looking Statements This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to FHN's beliefs, plans, goals, expectations, and estimates. Forward-looking statements are not a representation of historical information, but instead pertain to future operations, strategies, financial results, or other developments. The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “should,” “is likely,” “will,” “going forward,” and other expressions that indicate future events and trends identify forward-looking statements. Forward- looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, operational, economic, and competitive uncertainties and contingencies, many of which are beyond FHN’s control, and many of which, with respect to future business decisions and actions (including acquisitions and divestitures), are subject to change and could cause FHN’s actual future results and outcomes to differ materially from those contemplated or implied by forward-looking statements or historical performance. Examples of uncertainties and contingencies include those mentioned: in this document; in Items 2.02 and 7.01 of FHN’s Current Report on Form 8-K to which this document has been furnished as an exhibit; in the forepart, and in Items 1, 1A, and 7, of FHN’s most recent Annual Report on Form 10-K; and in the forepart, and in Item 1A of Part II, of FHN’s Quarterly Report(s) on Form 10-Q filed after that Annual Report. FHN assumes no obligation to update or revise any forward-looking statements that are made in this document or in any other statement, release, report, or filing from time to time. Actual results could differ and expectations could change, possibly materially, because of one or more factors, including those factors mentioned in the reports listed above, those factors presented in the exhibits furnished by this report, and other factors not listed. Throughout this document, numbers may not foot due to rounding, references to EPS are fully diluted, and 3Q24 capital ratios are estimates.
3 3Q24 GAAP financial summary TBV/share, ROTCE, and adjusted financial measures, including measures excluding deferred compensation, are non-GAAP and are reconciled to GAAP measures in the appendix. Pre-provision net revenue (PPNR) is a non-GAAP measure and is reconciled to pre-tax income (GAAP) in the table. $ in millions except per share data Reported Results 3Q24 Change vs. 3Q24 2Q24 1Q24 4Q23 3Q23 2Q24 3Q23 Net interest income $627 $629 $625 $617 $605 ($1) —% $23 4% Fee income $200 $186 $194 $183 $173 $14 8% $27 15% Total revenue $828 $815 $819 $800 $778 $13 2% $49 6% Expense $511 $500 $515 $572 $474 $11 2% $37 8% Pre-provision net revenue (PPNR) $316 $315 $304 $227 $304 $2 1% $12 4% Provision for credit losses $35 $55 $50 $50 $110 ($20) (36%) ($75) (68%) Pre-tax income $281 $260 $254 $177 $194 $22 8% $87 45% Income tax expense $58 $56 $57 ($11) $52 $2 4% $6 12% Net income $223 $204 $197 $188 $142 $20 10% $81 57% Non-controlling interest $5 $5 $5 $5 $5 $— —% $— —% Preferred dividends $5 $15 $8 $8 $8 ($10) (66%) ($3) (37%) Net income available to common shareholders (NIAC) $213 $184 $184 $175 $129 $30 16% $84 65% Diluted EPS $ 0.40 $ 0.34 $ 0.33 $ 0.31 $ 0.23 $0.06 18% $0.17 72% Average diluted shares outstanding 538 547 558 561 561 (9) (2%) (23) (4%) ROCE 10.1% 9.0% 8.8% 8.6% 6.3% 112bps 382bps ROTCE 12.6% 11.3% 11.0% 10.9% 8.0% 131bps 465bps ROA 1.1% 1.0% 1.0% 0.9% 0.7% 8bps 40bps Net interest margin 3.31% 3.38% 3.37% 3.27% 3.17% (7bps) 14bps Fee income / total revenue 24.1% 22.8% 23.7% 23.3% 22.2% 131bps 183bps Efficiency ratio 61.9% 61.4% 62.9% 71.1% 61.0% 45bps 93bps FTEs 7,186 7,297 7,327 7,277 7,340 (111) (2%) (154) (2%) CET1 ratio 11.2% 11.0% 11.3% 11.4% 11.1% 18bps 11bps Effective tax rate 20.6% 21.5% 22.5% (6.2%) 26.7% (91bps) (609bps) Tangible book value per share $13.02 $12.22 $12.16 $12.13 $11.22 $0.81 7% $1.80 16% Period end loans $62.4B $62.8B $61.8B $61.3B $61.8B ($0.3) (1%) $0.7 1% Period end deposits $66.6B $64.8B $65.7B $65.8B $67.0B $1.8 3% ($0.4) (1%) Period end loan to deposit ratio 94% 97% 94% 93% 92% (309bps) 162bps
4 Table of contents 3Q24 highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3Q24 adjusted financial results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 3Q24 notable items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 NII and NIM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Adjusted fee income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Adjusted expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Asset quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 FY24 outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Strategic focus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
5 • Loan-to-deposit ratio improved from 97% to 94%, largely due to successful deposit gathering with client balance growth of ~$1 billion • Total loans decreased $0.3 billion, as growth in loans to mortgage companies largely offset other C&I loan declines • Returned $75 million of capital to shareholders through repurchases • TBVPS up $0.81, driven by strong earnings and lower mark-to-market, supporting $0.15 of common dividends, as well as share buy backs • ACL coverage of 1.44% with net charge-offs of $24 million • Adjusted PPNR of $335 million, up $11 million from 2Q24 • NII relatively flat, as day count and loan yields offset higher deposit costs • Fees excluding deferred comp up $11 million, with a pick up in fixed income production ahead of anticipated rate cuts • Expenses excluding deferred comp declined by $1 million Strong 3Q24 results driven by stable, diversified business mix Reflects 3Q24 vs. 2Q24 results. ROTCE, TBV, ACL coverage ratio, and adjusted financial measures, including measures excluding deferred compensation, are non-GAAP and are reconciled to GAAP measures in the appendix. Adjusted pre-provision net revenue (PPNR) is a non-GAAP measure and is reconciled to pre-tax income (GAAP) in the appendix. Net interest income and margin are adjusted to a fully taxable equivalent (“FTE”) basis assuming a statutory federal income tax of 21 percent and, where applicable, state income taxes. Earnings & Returns Capital & Credit Quality Period End Balance Sheet & Liquidity Adj. EPS Adj. ROTCE NIM Adj. Efficiency $0.42 13.2% 3.31% 59.9% Deposits Loans Loan-to-Deposit Ratio +3% (1)% 94% CET1 TBV NCO% 11.2% $13.02 0.15%
6 • 3Q24 adjusted EPS of $0.42 vs. $0.36 in 2Q24 – Adjusted ROTCE of 13.2%, up 125bps – Tangible Book Value per share increased $0.81 to $13.02 • NII down $2 million linked quarter – NIM decreased 7bps driven by an increase in deposit costs and brokered funding balances, partially offset by an increase in loan yields • Adjusted fee income up $11 million excluding deferred compensation, with higher fixed income production driven by the market’s expectation of falling rates • Adjusted expense down $1 million excluding deferred compensation • Provision expense of $35 million with an ACL coverage of 1.44% 3Q24 adjusted financial highlights ROTCE, TBV, ACL coverage ratio, and adjusted financial measures, including measures excluding deferred compensation, are non-GAAP and are reconciled to GAAP measures in the appendix. Adjusted pre-provision net revenue (PPNR) is a non-GAAP measure and is reconciled to pre-tax income (GAAP) in the appendix. Net interest income and margin are adjusted to a fully taxable equivalent (“FTE”) basis assuming a statutory federal income tax of 21 percent and, where applicable, state income taxes. $ in millions, except per share data Adjusted Results 3Q24 Change vs. 3Q24 2Q24 3Q23 2Q24 3Q23 Net interest income (FTE) $631 $633 $609 ($2) —% $22 4% Fee income $200 $186 $173 $14 8% $27 15% Total revenue (FTE) $832 $819 $782 $12 2% $49 6% Expense $497 $495 $465 $2 —% $32 7% Pre-provision net revenue $335 $324 $318 $11 3% $17 5% Provision for credit losses $35 $55 $110 ($20) (36%) ($75) (68%) Net charge-offs $24 $34 $95 ($10) (29%) ($71) (75%) Reserve build / (release) $11 $21 $15 ($10) (48%) ($4) (27%) NIAC $224 $195 $150 $29 15% $74 49% Diluted EPS $0.42 $0.36 $0.27 $0.06 17% $0.15 56% Diluted shares 538 547 561 (9) (2%) (23) (4%) ROTCE 13.2% 12.0% 9.2% 125bps 403bps ROA 1.1% 1.0% 0.8% 11bps 35bps Net interest margin (NIM) 3.31% 3.38% 3.17% (7bps) 14bps Fee income / total revenue 24.0% 22.6% 22.1% 131bps 184bps Efficiency ratio 59.9% 60.5% 59.4% (61bps) 43bps CET1 Ratio 11.2% 11.0% 11.1% 18bps 11bps TBV per share $13.02 $12.22 $11.22 $0.81 7% $1.80 16% Effective tax rate 20.8% 21.5% 20.1% (75bps) 70bps
7 3Q24 notable items Notable Items ($ in millions, except EPS) 3Q24 FDIC Special Assessment $2 Visa Derivative Valuation Expense $(15) Restructuring expense ($2) Pre-tax impact of notable items $(14) Tax impact on pre-tax notable items $4 NIAC impact of notable items ($11) EPS impact of notable items ($0.02) Pre-Tax Notable Items • An expense credit of $2 million for the FDIC special assessment, based on a re-allocation of loss totals from the FDIC in 3Q24 • $15 million tied to Visa derivative valuation expenses related to the escrow funding that occurred in September • $2 million of restructuring expense primarily related to implementing operational efficiencies
8 NII remained stable, despite falling short term rates $609 $621 $628 $633 $631 3.17% 3.27% 3.37% 3.38% 3.31% 3Q23 4Q23 1Q24 2Q24 3Q24 Net Interest Income ($) and NIM (%) Net interest income and margin are adjusted to a fully taxable equivalent (“FTE”) basis assuming a statutory federal income tax of 21 percent and, where applicable, state income taxes. 1Does not include the impact of interest rate hedges. For more detail on the hedges, see slide 18 in the appendix. • 3Q24 net interest income was relatively stable, while net interest margin declined 7bps versus 2Q24 – Deposit costs increased versus the prior quarter, driven by higher use of brokered deposits, success in gathering new-to- bank clients, and late cycle repricing within the existing customer base – Asset yields continued to benefit from the repricing of fixed rate cash flows in the loan and securities portfolios, as well as growth in loans to mortgage companies (LMC) balances, which are higher yielding • Subsequent changes in the net interest margin will be impacted by the pace and magnitude of incremental interest rate cuts, as well as the lag between loan and deposit repricing – Though 56%1 of loans are indexed to short-term rates, there continues to be opportunity over the next year to reprice fixed rate cash flows, including ~$4 billion of fixed rate loans with a roll-off yield of ~4.6% and $1 billion of securities at a roll-off yield of ~2.2% – Additionally, ~$18 billion of promotional client deposits are eligible for repricing in the fourth quarter $ in millions NII Margin 2Q24 $633 3.38% Day Count $4 Loan Yields & Balances $5 0.01% Customer Deposit Rate Paid $(12) (0.06)% Brokered Deposit Balances $0 (0.05)% Investment Portfolio & Other $2 0.03% 3Q24 $631 3.31%
9 $67.0B $65.8B $65.7B $64.8B $66.6B $45.3 $45.9 $46.2 $45.0 $46.0 $3.8 $2.6 $3.1 $3.5 $4.3 $17.8 $17.2 $16.4 $16.3 $16.2 Client interest-bearing deposits Brokered deposits Noninterest-bearing deposits 3Q23 4Q23 1Q24 2Q24 3Q24 Focused on growing and deepening client relationships Period end deposits • 3Q24 period end deposits of $66.6 billion were up 3% versus 2Q24 – Client balances grew approximately $1 billion – Growth was broad based, with particular momentum in the Carolinas, Alabama, and the specialty business lines – Noninterest-bearing balances remained relatively stable from previous quarter • 3Q24 interest-bearing rate paid of 3.44%, up 14bps – At the end of the quarter, the interest-bearing deposit spot rate was ~3.33%, ending 11 basis points below the quarter’s average and down slightly from the spot rate at the end of 2Q24 – Deposit portfolio includes ~$9 billion of deposits which are market indexed – Over $1 billion of brokered CDs set to mature in 4Q24 • Continuing to remain competitive while focusing on deepening relationship with existing clients, with 91% retention year-over-year
10 • 3Q24 period end loans of $62.4 billion declined $0.3 billion or 1% versus 2Q24 – Loans to mortgage companies (LMC) continued to benefit from seasonality and competitor disruption, with balances up $310 million – Exited the sponsored health care lending vertical with an opportunistic sale of a ~$340 million portfolio consisting of ~20 relationships of higher leverage, low-pass graded loans – After a period of fund ups of previously committed loans, CRE balances stabilized • Period end line utilization of 43%1 • Loan yields expanded 3bps to 6.37% driven by wider spreads on new and renewing loans, as well as continued repricing of fixed rate cash flows • Asset sensitive profile reflected in loan composition of 56% variable rate, 12% ARM, and 32% fixed rate3 1Utilization rates exclude Loans to Mortgage Companies. 2Credit card & other is $0.8B from 3Q23 to 2Q24 and $0.7B in 3Q24. 3Does not include the impact of interest rate hedges. For more detail on the hedges, see slide 18 in the appendix. Period end loans Diversified portfolio across attractive geographic footprint $61.8B $61.3B $61.8B $62.8B $62.4B $30.9B $30.6B $30.5B $30.5B $29.8B $14.1B $14.2B $14.4B $14.7B $14.7B $13.7B $13.6B $13.6B $13.9B $14.0B $2.2B $2.0B $2.4B $2.9B $3.2B C&I ex LMC Commercial real estate (CRE) Consumer real estate LMC Credit card & other 3Q23 4Q23 1Q24 2Q24 3Q24 2
11 • 3Q24 adjusted fee income excluding deferred compensation increased $11 million from 2Q24 – Fixed income increased $7 million with an average daily revenue (ADR) of $593k, up $105k or 22%, driven by higher production as the market anticipated the decline in interest rates – Mortgage banking income down $1 million, moderating slightly from home-buying season highs – The net of service charges & fees and card & digital banking fees is stable to the prior quarter – Brokerage, trust, and insurance income up $1 million, as strong market performance improved wealth management fees – Other noninterest income increased $5 million, driven by various items, including securities and other gains, higher Federal Home Loan Bank (FHLB) dividends, and bank owned life insurance (BOLI) benefits Fixed income production increased as interest rates declined ROTCE, TBV, ACL coverage ratio, and adjusted financial measures, including measures excluding deferred compensation, are non-GAAP and are reconciled to GAAP measures in the appendix. 1Fixed Income ADR is based upon Fixed Income trading revenues and excludes other product revenues (e.g. investment advisory, derivatives, loan trading and other service related revenues). $ in millions Adjusted Results 3Q24 Change vs. 3Q24 2Q24 1Q24 4Q23 3Q23 2Q24 3Q23 Fixed income $47 $40 $52 $37 $28 $7 16% $19 68% Mortgage banking $9 $10 $9 $5 $7 ($1) (12%) $2 29% Service charges and fees $59 $58 $57 $59 $60 $0 —% ($1) (2%) Brokerage, trust, and insurance $39 $38 $36 $36 $34 $1 4% $6 18% Card and digital banking fees $19 $20 $19 $16 $20 ($1) (3%) ($1) (5%) Deferred compensation income $6 $3 $9 $6 $0 $3 107% $6 NM Other noninterest income $21 $17 $14 $20 $25 $5 29% ($3) (13%) Total fee income $200 $186 $194 $179 $173 $14 8% $27 15% Fee income ex deferred comp $194 $183 $186 $173 $173 $11 6% $21 12% Fixed income ADR1 $593k $488k $731k $463k $301k $105k 22% $292k 97%
12 Expenses stable as lower incentive levels offset strategic investments • 3Q24 adjusted expense, excluding deferred compensation, decreased $1 million versus 2Q24 – Personnel expense excluding deferred compensation down $1 million ◦ Salaries and benefits increased $2 million, driven by day count and higher medical expenses ◦ Despite higher fixed income production, incentives and commissions decreased $2 million, primarily due to a step down in retention expenses that were paid in 2Q24 and lower incentives in other variable compensation businesses – Changes in outside services and occupancy and equipment combined for a slight reduction, as incremental property management costs and software investments are more than offset by reduced external engagements associated with strategic investments $ in millions Adjusted Results 3Q24 Change vs. 3Q24 2Q24 1Q24 4Q23 3Q23 2Q24 3Q23 Salaries and benefits $199 $198 $199 $190 $188 $2 1% $11 6% Incentives and commissions $76 $78 $87 $80 $68 ($2) (3%) $7 11% Deferred compensation expense $6 $3 $9 $7 $0 $3 114% $7 NM Total personnel expense $281 $279 $295 $277 $256 $2 1% $26 10% Occupancy and equipment $73 $72 $72 $71 $67 $2 3% $6 8% Outside services $73 $75 $65 $84 $69 ($2) (3%) $3 5% Amortization of intangible assets $11 $11 $11 $12 $12 $— —% ($1) (8%) Other noninterest expense $59 $58 $57 $59 $60 $— 1% ($2) (3%) Total noninterest expense $497 $495 $500 $502 $465 $2 —% $32 7% Expense ex deferred comp $491 $492 $491 $495 $465 ($1) —% $26 6% Full-time equivalent associates 7,186 7,297 7,327 7,277 7,340 (111) (2%) (154) (2%) ROTCE, TBV, ACL coverage ratio, and adjusted financial measures, including measures excluding deferred compensation, are non-GAAP and are reconciled to GAAP measures in the appendix. 1Occupancy and Equipment expense includes Computer Software Expense. 1
13 FHN NCO%1 ( FHN NCO% ex idiosyncratic charge-off3) Average NCO% of BKX Index2 $95 $36 $40 $34 $24 0.61% 0.23% 0.27% 0.22% 0.15%0.15% 0.45% 0.53% 0.56% 0.57% 3Q23 4Q23 1Q24 2Q24 3Q24 FHN NCOs Disciplined lending leads to strong performance across the cycle ROTCE, TBV, ACL coverage ratio, and adjusted financial measures, including measures excluding deferred compensation, are non-GAAP and are reconciled to GAAP measures in the appendix. 1Net charge-off % is annualized and as % of average loans. 2Excludes trust and investment banks. 33Q23 included a $72 million idiosyncratic C&I charge-off. NCO% excluding this charge-off is a non-GAAP measure and is reconciled to GAAP NCO% in the chart. $842 $856 $865 $887 $897 1.36% 1.40% 1.40% 1.41% 1.44% ACL ACL/Loans 3Q23 4Q23 1Q24 2Q24 3Q24 Allowance for credit losses (ACL) Non-performing loans (NPLs) $394 $462 $505 $574 $578 0.64% 0.75% 0.82% 0.91% 0.92% NPLs $ NPLs % 3Q23 4Q23 1Q24 2Q24 3Q24 • 3Q24 net charge-offs of $24 million decreased $10 million – NCO ratio of 0.15% • Provision expense of $35 million in 3Q24 – 3Q24 ACL coverage ratio increased slightly to 1.44%, driven by $8 million of qualitative reserves for Hurricane Helene and continued grade migration, which was partially offset by more favorable economic scenarios • NPL ratio of 92bps up 1bp from 2Q24 – Within the commercial NPL portfolio, 63% of loans are current on their payments Net charge-offs
14 13.6% 14.0% 13.9% 13.7% 13.9% CET1 ratio Tier 1 capital ratio Total capital ratio 3Q23 4Q23 1Q24 2Q24 3Q24 Earnings power supports return of capital to shareholders Capital Ratios $12.22 $0.42 $(0.15) $0.54 $(0.03) $0.02 $13.02 2Q24 NIAC Impact Common Dividend Mark on AFS & Hedges Share Buybacks Other 3Q24 • The CET1 ratio increased 18bps to 11.2%, above the near-term 11% target – Continued to generate capital through retained earnings, while supporting customer needs through organic deployment of capital into the loan portfolio – Returned $75 million of capital to shareholders through repurchases in third quarter with an average price paid of $15.801, outperforming the volume weighted average price (VWAP) by $0.09 – Repurchased 29 million shares of common stock or $441 million year-to-date under the $650 million share repurchase program • TBVPS of $13.02 increased $0.81 versus 2Q24, driven by strong earnings and lower mark-to-market impacts, which supported the $0.15 common dividend and an $0.03 impact from share repurchases Tangible Book Value per Share (TBVPS) ROTCE, TBV, ACL coverage ratio, and adjusted financial measures, including measures excluding deferred compensation, are non-GAAP and are reconciled to GAAP measures in the appendix. 1Represents total costs including commissions paid. Average price paid does not reflect the one percent excise tax charged on public company share repurchases. 2Other includes equity compensation. 3Net of change in intangibles. 3 11.0% 0.30% (0.11)% (0.11)% 0.09% 0.01% 11.2% 2Q24 Actual NIAC Common Dividend Share Buybacks Change in Loan Balances & Unfunded Commitments Other 3Q24 Estimate 2 Common Equity Tier 1 (CET1) 11.1% 11.4% 11.3% 11.0% 11.2% 12.1%12.3%12.4%12.1% 12.2% 2
15 Updated Full Year 2024 Outlook ROTCE, TBV, ACL coverage ratio, and adjusted financial measures, including measures excluding deferred compensation, are non-GAAP and are reconciled to GAAP measures in the appendix. Net interest income is adjusted to a fully taxable equivalent (“FTE”) basis assuming a statutory federal income tax of 21 percent and, where applicable, state income taxes. Variability in Deferred Compensation may impact growth rates in noninterest income and noninterest expense but should have an offsetting and immaterial impact on pretax income. Earnings Drivers FY23 Adjusted Baseline FY24 Adjusted Expectations Comments Total Revenue $3,254 million Flat - Up 2% Composition of revenue will be driven by the quantity and pace of interest rate cuts, which will have inverse impacts to NII and fee income. Noninterest Expense $1,884 million Up 4% – 6% Reflects investment in technology and personnel, as well as increased revenue-driven incentives Net Charge-Offs 0.28% 0.25% – 0.30% Trending favorably to guidance, though recent weather events could drive incremental losses or necessitate additions to reserves Tax Rate 21.8% 21% – 23% Timing of discrete items impacts quarterly rate CET1 Ratio 11.4% ~11.0% Excess capital to be deployed organically, as well as potential for capital repatriation
16 Diversified business model with highly attractive geographic footprint provides opportunity to deliver outperformance through a variety of economic cycles Strategic focus on delivering enhanced shareholder value 1 Strong balance sheet and prudent risk management to drive increased capital efficiency and returns 2 Client-centric model committed to serving as trusted advisor through Capital + Counsel as a core differentiator3 Disciplined execution of strategy and continuous improvement mindset to further enhance efficiency and productivity 4 Investing in the well-being of associates and communities is central to our purpose5
APPENDIX 17
18 Actively managing balance sheet sensitivity Interest rate sensitivity managed in part with interest rate hedges Variable 56% Fixed 32% ARMs 12% $62.4B Floors 60% Swaps 40% $5.0B Loan repricing profile Balance sheet hedges Modest interest rate sensitivity1 +100bps +2.0% -100bps -2.6% change in the next 12 months' NII for an instantaneous, parallel shock • Modestly asset-sensitive profile driven by 56% variable rate loan mix • Reset dates of greater than one year on 93% of ARMs • Floors with strike prices between 1.25% and 2.5% and maturities ranging from late 2027 to early 2029 • Receive fixed swaps with fixed rates between 2.6% and 3.0% and maturities in 2027 and 2029 Assumptions: • Balance sheet is static • Instantaneous parallel shift in the entire interest rate curve 1Estimate as of 9/30/24.
19 Track record of strong results supported by stable, diversified business mix $756 $1,084 $1,222 $1,374 $1,370 $1,311 All Other Adjusted PPNR Counter-Cyclicals PPNR Avg Fed Funds Effective Rate 2019 (pre-IBKC) 2020 (IBKC in 2H20) 2021 2022 2023 2024 YTD Annualized $— $200 $400 $600 $800 $1,000 $1,200 $1,400 0% 1% 2% 3% 4% 5% 6% 7% 8% • Our diversified business model with a highly attractive geographic footprint provides opportunity to deliver strong performance through a variety of economic cycles • The counter-cyclical businesses (fixed income, loans to mortgage companies, and mortgage) provide a counterbalance to the asset sensitive balance sheet during periods of declining interest rates PPNR in millions Adjusted pre-provision net revenue (PPNR) is a non-GAAP measure and is reconciled to pre-tax income (GAAP) in the appendix. Numbers may not foot due to rounding. 12019 and 1H20 are standalone FHN, as the IBKC merger-of-equals did not occur until July 1, 2020. 2Counter-cyclical PPNR includes direct and allocated fees and expenses, as well as net interest income net of funds transfer pricing. Average Fed Funds Effective $598, 79% $678, 63% $875, 72% $1,267, 92% $1,344, 98% $1,236, 94% $158, 21% $406, 37% $347, 28% $74, 6% $26, 2% $108, 8% 1 1 2
20 1Q 07 1Q 08 1Q 09 1Q 10 1Q 11 1Q 12 1Q 13 1Q 14 1Q 15 1Q 16 1Q 17 1Q 18 1Q 19 1Q 20 1Q 21 1Q 22 1Q 23 1Q 24 —% 2.00% 4.00% 6.00% $0.0 $0.5 $1.0 $1.5 $2.0 FHN Financial’s strong full-cycle returns are counter-cyclical to bank franchise Lower Revenue Market Factor Higher Revenue 2020 Environment 2023 Environment Up Rate Direction Down Rapid decrease in short term rates Rapid increase in short term rates Extreme (low/high) Market Volatility Moderate Moderate Extreme - MOVE index sharply higher Flat/Inverted Yield Curve Shape Steep Positive sloped Strongly inverted Tighter Corporate & Mortgage Spreads Wider Wider Stable Lower Depository Liquidity Greater Abundant - fueled by stimulus Constrained - exacerbated by QT • FHN Financial provides fixed income sales & trading, investment advisory, interest rate derivatives and other services to financial institutions, municipalities and other institutional investors across the United States and internationally • In addition to trading revenues, FHN Financial generates ~$40 million annually of fee income from other products, including investment advisory, derivatives, loan trading and other service related revenue • 4,000+ active institutional clients • Clients include approximately one third of all US banks and 50% of banks with portfolios over $100 million in size • The variable compensation payout ratio on marginal revenue is approximately 60% FOMC easing during GFC FOMC ZIRP Policy Normalizing FOMC Policy FOMC easing during pandemic FOMC tightening to fight inflation Fed Funds Average ADR in millions $1.6 $1.2 $0.7 $1.3 $0.5
21 $40.3 61% $22.0 33% $4.2 6% Insured Uninsured & uncollateralized Collateralized Attractive portfolio diversified by customer type, product, and geography 67% of 3Q24 deposits insured or collateralized 3Q24 diversified deposit mix by product 24% 40% 13% 23% Demand deposit accounts Savings Time deposits Other interest-bearing deposits • Stable, cost-effective deposits from a diverse commercial and consumer client base across 12-state footprint and specialty lines of business • Commercial deposits of $37 billion or 56% and consumer deposits of $29 billion or 44% • Attractive lower-cost deposit base with 24% comprised of non-interest bearing products • Contingency funding plan equates to ~153% of uninsured or uncollateralized deposits Banking centers in attractive Southeast footprint1 All deposit balances are period end unless otherwise noted. 1One banking center in New York not shown. $66.6B
22 $1.2B $3.4B $3.1B $7.0B Floating Fixed 2024 2025 2026 2027+ <$5 $3.3B $5-$10 $2.0B $10-$20 $2.9B $20-$30 $2.5B $30-$40 $2.4B $40-$50 $1.0B >$50 $0.7B 73% 86% 80% 61% CRE by Loan Size2 CRE by State3 Maturity Schedule CRE by Property Type High credit quality, diversified CRE portfolio All loan balances are period end unless otherwise noted. 1FHN’s CRE metrics database includes information for all loans in the Pro CRE LOB, as well as market/investor CRE loans $5+ million in commitments, which encompasses 75% of total CRE commitments. 2Loan size ranges in millions and dollar amounts are total funded balances in that size range to any single customer. 3Excludes CRE balances totaling $1.4B outside the Southeast and New York footprint. • Disciplined risk management practice and underwriting standards across CRE portfolio • No significant upcoming repricing event, as ~72% of loans are floating and maturities are dispersed over time • Granular portfolio with only 15 loans with commitments above $50 million • No property type comprises over 8% of total loans • Average debt service coverage of 1.4x and average stabilized LTV of 54%1 $ in billions $14.7B 27% 14% 20% 39% 36% 9% 9% 15% 15% 9% 4% 3% Multi-Family Traditional Office Medical Office Retail Industrial Hospitality Other Land + Residential
23 0.3M 1.2M 1.3M 14.0M 2024 2025 2026 2027+ Multi-Family2 $ in millions Multi-Family CRE1 Strong underwriting in the office and multi-family portfolios All loan balances are period end unless otherwise noted. 1FHN’s CRE metrics database includes information for all loans in the Pro CRE LOB, as well as market/investor CRE loans $5+ million in commitments, which encompasses 71% of traditional office CRE commitments and 88% of multi-family CRE commitments. 2Excludes traditional office balances totaling $62 million and multi-family balances totaling $97 million outside of the Southeast and New York footprint. Maps encompass entirety of traditional office and multi-family CRE portfolios. Traditional Office2 $ in millions • Average debt service coverage of 1.2x • Average stabilized LTV of 52% • Average property has 238 units • Low exposure to rent control, which is mostly related to low and moderate income housing focused on serving the communities in our footprint Office CRE • Medical office comprises 49% of office exposure • Only 13 projects are 10 stories or taller • Within the traditional office portfolio1: – Average debt service coverage of 1.6x – Average stabilized LTV of 60% – Vacancy rate of 13% Office Lease Renewals Square Feet in Millions
24 81% 14% 5% Real estate installment loans HELOC Credit card and other Granular C&I portfolio and real estate backed consumer portfolio C&I by Industry 20% 19% 12% 11% 9% 7% 6% 6% 5% 4% TN All Other FL TX Other Southeastern NC LA CA GA AL C&I by State Consumer Portfolio by Product 11% 11% 10% 8% 7%7% 7% 5% 5% 4% 25% Real Estate & Leasing Finance & Insurance Mortgage Warehouse Healthcare & Social Assistance Wholesale Trade Manufacturing Accommodation & Food Service Retail Trade Transportation & Warehousing Energy Other 14 Industries • The C&I portfolio is both geographically diverse and benefits from a lack of industry concentration – No more than 11% C&I exposure to any industry – Southeastern footprint is economically and demographically strong – Exposure to markets outside the southeast primarily driven by specialty businesses • Consumer portfolio focused on real estate, with negligible exposure to auto or consumer credit card All loan balances are period end unless otherwise noted. $33.1B $14.6B
25 $0.3B $0.3B $0.3B $0.3B 4Q24 1Q25 2Q25 3Q25 Agency MBS 42% Agency CMBS 26% Agency CMO 13% U.S. Agencies & Treasury 12% States & Municipalities 6% $9.8B $9.4B $9.6B $9.3B $9.4B 2.54% 2.62% 2.54% 2.58% 2.58% Average AFS Securities Average HTM Securities Average Yield 3Q23 4Q23 1Q24 2Q24 3Q24 Investment portfolio prudently managed to support liquidity and IRR • 3Q24 investment portfolio represents ~11% of total assets – Moderate total portfolio effective duration of 4.6 – Low reliance on HTM designation at ~14% of total portfolio – 94% U.S. government or agency-backed by GSEs • 3Q24 total unrealized losses on the AFS and HTM portfolios of $1.0B, improved from 2Q24 levels 1Calculated based on period end market values. 2Estimated as of 9/30/24; includes maturities and projected calls. Steady principal cash flows2 Investment portfolio 3Q23 4Q23 1Q24 2Q24 3Q24 % of total assets 12% 11% 12% 11% 11% Pre-tax unrealized losses ($1.8B) ($1.3B) ($1.4B) ($1.4B) ($1.0B) Effective duration 5.2 5.0 5.0 4.9 4.6 Unencumbered securities / total securities1 33% 30% 27% 25% 38% 3Q24 investment portfolio composition1
26 Notable Items *3Q24, 2Q24, 1Q24 and 3Q23 include $2 million, $3 million, $5 million and $10 million of restructuring expenses; 3Q24 includes $15 million of Visa derivative valuation expenses. **4Q23 includes a discrete benefit primarily attributable to the resolution of merger-related tax items and 3Q23 includes after-tax notable items of $24 million related to the surrender of approximately $214 million in book value of bank owned life insurance policies, partially offset by an $11 million benefit from merger-related tax items. $ in millions, except EPS 3Q24 2Q24 1Q24 4Q23 3Q23 Summary of Notable Items: Gain/(loss) related to equity securities investments (other noninterest income) $ — $ — $ — $ (6) $ — Net gain on asset disposition (other noninterest income less incentives) — — — 7 — FDIC special assessment (other noninterest expense) 2 (2) (10) (68) — Other notable expenses* (17) (3) (5) — (10) Total notable items (pre-tax) (14) (5) (15) (67) (10) Tax related notable items** — — — 48 (13) Series D Preferred Stock — (7) — — — EPS impact of notable items $ 0.02 $ 0.02 $ 0.02 $ 0.01 $ 0.04
27 Reconciliation to GAAP financials Slides in this presentation use non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. (a) Included in Total Equity on the Consolidated Balance Sheet. (b) Includes goodwill and other intangible assets, net of amortization. Numbers may not foot due to rounding. $s in millions, except per share data Quarterly, Unaudited 3Q24 2Q24 1Q24 4Q23 3Q23 Tangible Common Equity (non-GAAP) (A) Total equity (GAAP) $ 9,316 $ 8,955 $ 9,173 $ 9,291 $ 8,794 Less: Noncontrolling interest (a) 295 295 295 295 295 Less: Preferred stock (a) 426 426 520 520 520 (B) Total common equity $ 8,595 $ 8,234 $ 8,358 $ 8,476 $ 7,978 Less: Intangible assets (GAAP) (b) 1,663 1,674 1,685 1,696 1,709 (C) Tangible common equity (non-GAAP) $ 6,931 $ 6,560 $ 6,673 $ 6,779 $ 6,270 Tangible Assets (non-GAAP) (D) Total assets (GAAP) $ 82,635 $ 82,230 $ 81,799 $ 81,661 $ 82,533 Less: Intangible assets (GAAP) (b) 1,663 1,674 1,685 1,696 1,709 (E) Tangible assets (non-GAAP) $ 80,971 $ 80,556 $ 80,114 $ 79,965 $ 80,825 Period end Shares Outstanding (F) Period end shares outstanding 532 537 549 559 559 Ratios (A)/(D) Total equity to total assets (GAAP) 11.27 % 10.89 % 11.21 % 11.38 % 10.65 % (C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (non-GAAP) 8.56 % 8.14 % 8.33 % 8.48 % 7.76 % (B)/(F) Book value per common share (GAAP) $ 16.15 $ 15.34 $ 15.23 $ 15.17 $ 14.28 (C)/(F) Tangible book value per common share (non-GAAP) $ 13.02 $ 12.22 $ 12.16 $ 12.13 $ 11.22
28 Reconciliation to GAAP financials Slides in this presentation use non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. $s in millions Quarterly, Unaudited 3Q24 2Q24 1Q24 4Q23 3Q23 Adjusted Diluted EPS Net income available to common shareholders ("NIAC") (GAAP) a $ 213 $ 184 $ 184 $ 175 $ 129 Plus Total notable items (after-tax) (non-GAAP) (a) 11 11 12 3 20 Adjusted net income available to common shareholders (non-GAAP) b $ 224 $ 195 $ 196 $ 178 $ 150 Diluted Shares (GAAP) c 538 547 558 561 561 Diluted EPS (GAAP) a/c $ 0.40 $ 0.34 $ 0.33 $ 0.31 $ 0.23 Adjusted diluted EPS (non-GAAP) b/c $ 0.42 $ 0.36 $ 0.35 $ 0.32 $ 0.27 Adjusted Net Income ("NI") and Adjusted Return on Assets ("ROA") Net Income ("NI") (GAAP) $ 223 $ 204 $ 197 $ 188 $ 142 Plus Relevant notable items (after-tax) (non-GAAP) (a) 11 4 12 3 20 Adjusted NI (non-GAAP) $ 234 $ 208 $ 209 $ 191 $ 163 NI (annualized) (GAAP) d $ 889 $ 820 $ 791 $ 746 $ 565 Adjusted NI (annualized) (non-GAAP) e $ 932 $ 836 $ 838 $ 757 $ 646 Average assets (GAAP) f $ 82,366 $ 81,721 $ 81,243 $ 82,313 $ 83,220 ROA (GAAP) d/f 1.08 % 1.00 % 0.97 % 0.91 % 0.68 % Adjusted ROA (non-GAAP) e/f 1.13 % 1.02 % 1.03 % 0.92 % 0.78 % Return on Average Common Equity ("ROCE")/ Return on Average Tangible Common Equity ("ROTCE")/ Adjusted ROTCE Net income available to common shareholders ("NIAC") (annualized) (GAAP) g $ 849 $ 739 $ 739 $ 695 $ 513 Adjusted Net income available to common shareholders (annualized) (non-GAAP) h $ 892 $ 785 $ 787 $ 706 $ 594 Average Common Equity (GAAP) i $ 8,407 $ 8,228 $ 8,436 $ 8,090 $ 8,163 Intangible Assets (GAAP) (b) 1,669 1,680 1,691 1,702 1,714 Average Tangible Common Equity (non-GAAP) j $ 6,738 $ 6,548 $ 6,745 $ 6,388 $ 6,448 ROCE (GAAP) g/i 10.10 % 8.98 % 8.76 % 8.60 % 6.28 % ROTCE (non-GAAP) g/j 12.60 % 11.29 % 10.95 % 10.89 % 7.95 % Adjusted ROTCE (non-GAAP) h/j 13.24 % 11.99 % 11.65 % 11.05 % 9.21 % (a) Adjusted for notable items as detailed on page 26 (b) Includes goodwill and other intangible assets, net of amortization. Numbers may not foot due to rounding.
29 Reconciliation to GAAP financials Slides in this presentation use non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. $s in millions Quarterly, Unaudited 3Q24 2Q24 1Q24 4Q23 3Q23 Adjusted Noninterest Income as a % of Total Revenue Noninterest income (GAAP) k $ 200 $ 186 $ 194 $ 183 $ 173 Plus notable items (pretax) (GAAP) (a) $ — $ — $ — $ (4) $ — Adjusted noninterest income (non-GAAP) l $ 200 $ 186 $ 194 $ 179 $ 173 Revenue (GAAP) m $ 828 $ 815 $ 819 $ 800 $ 778 Taxable-equivalent adjustment $ 4 $ 4 $ 4 $ 4 $ 4 Revenue- Taxable-equivalent (non-GAAP) $ 832 $ 819 $ 823 $ 804 $ 782 Plus notable items (pretax) (GAAP) (a) $ — $ — $ — $ (4) $ — Adjusted revenue (non-GAAP) n $ 832 $ 819 $ 823 $ 800 $ 782 Securities gains/(losses) (GAAP) o $ 1 $ 1 $ — $ (5) $ — Noninterest income as a % of total revenue (GAAP) (k-o)/ (m-o) 24.06 % 22.75 % 23.72 % 23.33 % 22.23 % Adjusted noninterest income as a % of total revenue (non-GAAP) l/n 23.95 % 22.64 % 23.61 % 22.32 % 22.11 % Adjusted Efficiency Ratio Noninterest expense (GAAP) p $ 511 $ 500 $ 515 $ 572 $ 474 Plus notable items (pretax) (GAAP) (a) (14) (5) (15) (70) (10) Adjusted noninterest expense (non-GAAP) q $ 497 $ 495 $ 500 $ 502 $ 465 Revenue (GAAP) r $ 828 $ 815 $ 819 $ 800 $ 778 Taxable-equivalent adjustment 4 4 4 4 4 Revenue- Taxable-equivalent (non-GAAP) 832 819 823 804 782 Plus notable items (pretax) (GAAP) (a) — — — (4) — Adjusted revenue (non-GAAP) s $ 832 $ 819 $ 823 $ 800 $ 782 Securities gains/(losses) (GAAP) t $ 1 $ 1 $ — $ (5) $ — Efficiency ratio (GAAP) p/ (r-t) 61.89 % 61.44 % 62.92 % 71.14 % 60.96 % Adjusted efficiency ratio (non-GAAP) q/s 59.86 % 60.47 % 60.78 % 62.84 % 59.43 % (a) Adjusted for notable items as detailed on page 26. (b) Includes goodwill and other intangible assets, net of amortization. Numbers may not foot due to rounding.
30 Reconciliation to GAAP financials Slides in this presentation use non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. $s in millions Period end Average 3Q24 2Q24 3Q24 vs. 2Q24 3Q24 2Q24 3Q24 vs. 2Q24 Loans excluding LMC Total Loans (GAAP) $ 62,445 $ 62,781 $ (335) (1) % $ 62,413 $ 62,029 $ 384 1 % LMC (GAAP) 3,244 2,934 310 11 % 2,875 2,440 435 18 % Total Loans excl. LMC (non-GAAP) 59,201 59,847 (645) (1) % 59,538 59,589 (51) — % Total Consumer (GAAP) 14,648 14,660 (12) — % 14,654 14,544 110 1 % Total Commercial excl. LMC (non-GAAP) 44,553 45,187 (634) (1) % 44,883 45,045 (161) — % Total CRE (GAAP) 14,705 14,669 37 — % 14,684 14,576 108 1 % Total C&I excl. LMC (non-GAAP) $ 29,848 $ 30,518 $ (671) (2) % $ 30,199 $ 30,469 $ (270) (1) % $s in millions Quarterly, Unaudited 3Q24 2Q24 1Q24 4Q23 3Q23 Allowance for credit losses to loans and leases and Allowance for credit losses to nonperforming loans and leases Allowance for loan and lease losses (GAAP) A $ 823 $ 821 $ 787 $ 773 $ 760 Reserve for unfunded commitments (GAAP) 75 66 79 83 82 Allowance for credit losses (non-GAAP) B $ 897 $ 887 $ 865 $ 856 $ 842 Loans and leases (GAAP) C $ 62,445 $ 62,781 $ 61,753 $ 61,292 $ 61,778 Nonaccrual loans and leases (GAAP) D $ 578 $ 574 $ 505 $ 462 $ 394 Allowance for loans and lease losses to loans and leases (GAAP) A/C 1.32 % 1.31 % 1.27 % 1.26 % 1.23 % Allowance for credit losses to loans and leases (non-GAAP) B/C 1.44 % 1.41 % 1.40 % 1.40 % 1.36 % Allowance for loans and lease losses to nonperforming loans and leases (GAAP) A/D 142 % 143 % 156 % 167 % 193 % Allowance for credit losses to nonperforming loans and leases (non-GAAP) B/D 155 % 155 % 171 % 185 % 214 %
31 Reconciliation to GAAP financials Slides in this presentation use non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. (a) Adjusted for notable items as detailed on page 26. Numbers may not foot due to rounding. $s in millions Quarterly, Unaudited 3Q24 2Q24 1Q24 4Q23 3Q23 Adjusted noninterest income excluding deferred compensation income Noninterest income (GAAP) $ 200 $ 186 $ 194 $ 183 $ 173 Plus notable items (pretax) (GAAP) (a) — — — (4) — Adjusted noninterest income (non-GAAP) $ 200 $ 186 $ 194 $ 179 $ 173 Less deferred compensation income (GAAP) 6 3 9 6 — Adjusted noninterest income excluding deferred compensation income (non-GAAP) $ 194 $ 183 $ 186 $ 173 $ 173 Adjusted noninterest expense excluding deferred compensation expense Noninterest expense (GAAP) $ 511 $ 500 $ 515 $ 572 $ 474 Plus notable items (pretax) (GAAP) (a) (14) (5) (15) (70) (10) Adjusted noninterest expense (non-GAAP) $ 497 $ 495 $ 500 $ 502 $ 465 Less deferred compensation expense (GAAP) 6 3 9 7 — Adjusted noninterest expense excluding deferred compensation expense (non-GAAP) $ 491 $ 492 $ 491 $ 495 $ 465 Adjusted personnel expense excluding deferred compensation expense Personnel expense (GAAP) $ 282 $ 279 $ 301 $ 279 $ 266 Plus notable items (pretax) (GAAP) (a) (1) (1) (5) (2) (10) Adjusted personnel expense (non-GAAP) $ 281 $ 279 $ 295 $ 277 $ 256 Less deferred compensation expense (GAAP) 6 3 9 7 — Adjusted personnel expense excluding deferred compensation expense (non-GAAP) $ 275 $ 276 $ 286 $ 270 $ 256 $s in millions Quarterly, Unaudited 3Q24 2Q24 1Q24 4Q23 3Q23 Adjusted Pre-provision Net Revenue (PPNR) Pre-tax income (GAAP) $ 281 $ 260 $ 254 $ 177 $ 194 Plus notable items (pretax) (GAAP) (a) 14 5 15 67 10 Adjusted Pre-tax income (non-GAAP) $ 296 $ 265 $ 269 $ 244 $ 204 Plus provision expense (GAAP) 35 55 50 50 110 Adjusted Pre-provision net revenue (PPNR) (non-GAAP) $ 331 $ 320 $ 319 $ 294 $ 314 Taxable-equivalent adjustment 4 4 4 4 4 Pre-provision net revenue-Taxable-equivalent (non-GAAP) $ 335 $ 324 $ 323 $ 298 $ 318
32 Reconciliation to GAAP financials Slides in this presentation use non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. $s in millions Quarterly, Unaudited 2024 YTD Annualized2019 2020 2021 2022 2023 Adjusted Pre-provision Net Revenue (PPNR) Pre-tax Income (GAAP) $ 586 $ 933 $ 1,284 $ 1,159 $ 1,128 $ 1,062 Provision Expense (GAAP) 45 503 (310) 95 260 187 Total PPNR (non-GAAP) $ 631 $ 1,436 $ 974 $ 1,254 $ 1,388 $ 1,249 Taxable-equivalent adjustment (9) (11) (12) (13) (16) (16) Notable Items (GAAP) (a) (114) 363 (235) (107) 33 (47) Adjusted PPNR (non-GAAP) $ 756 $ 1,084 $ 1,222 $ 1,374 $ 1,370 $ 1,311 Numbers may not foot due to rounding. Notable items can be found in the appendices of earnings releases in previously furnished 8-K filings related to the periods shown.