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CITIZENS FINANCIAL GROUP INC/RI filed this 8-K on 04/27/2020

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CITIZENS FINANCIAL GROUP INC/RI - 8-K - 20200427 - EXHIBIT_99

Exhibit 99.1

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Financial Supplement

First Quarter 2020


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:
Nonaccrual loans and leases		14
Loans and Leases 90 Days or More Past Due and Accruing		15
Charge-offs, Recoveries and Related Ratios		16
Summary of Changes in the Components of the Allowance for Credit Losses		18

Capital and Ratios		19

Key Performance Metrics, Non-GAAP Financial Measures and Reconciliations		20

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.

Footnotes that are denoted by a letter apply to multiple pages and can be found in the appendix. Footnotes that are denoted by a number apply to a particular page and can be found at the bottom of the page.

CONSOLIDATED FINANCIAL HIGHLIGHTS

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


	QUARTERLY TRENDS
																1Q20 Change
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19						1Q19
																$/bps			%			$/bps			%
SELECTED OPERATING DATA
Total revenue	$	1,657		$	1,637		$	1,638		$	1,628		$	1,588		$	20			1	%	$	69			4	%
Noninterest expense		1,012			986			973			951			937			26			3			75			8

Profit before provision for credit losses		645			651			665			677			651			(6	)		(1	)		(6	)		(1	)
Provision for credit losses		600			110			101			97			85			490			NM			515			NM
NET INCOME		34			450			449			453			439			(416	)		(92	)		(405	)		(92	)
Net income, Underlying^A		59			454			453			458			443			(395	)		(87	)		(384	)		(87	)
Net income available to common stockholders		12			427			432			435			424			(415	)		(97	)		(412	)		(97	)
Net income available to common stockholders, Underlying^A		37			431			436			440			428			(394	)		(91	)		(391	)		(91	)
PER COMMON SHARE DATA
Basic earnings	$	0.03		$	0.98		$	0.97		$	0.95		$	0.92		($	0.95	)		(97	%)	($	0.89	)		(97	%)
Diluted earnings		0.03			0.98			0.97			0.95			0.92			(0.95	)		(97	)		(0.89	)		(97	)
Basic earnings, Underlying^A		0.09			0.99			0.98			0.96			0.93			(0.90	)		(91	)		(0.84	)		(90	)
Diluted earnings, Underlying^A		0.09			0.99			0.98			0.96			0.93			(0.90	)		(91	)		(0.84	)		(90	)
Cash dividends declared and paid per common share		0.39			0.36			0.36			0.32			0.32			0.03			8			0.07			22
Book value per common share		47.78			47.63			46.67			45.61			44.24			0.15			—			3.54			8
Tangible book value per common share		31.97			32.08			31.48			30.88			29.60			(0.11	)		—			2.37			8
Dividend payout ratio		1,398	%		37	%		37	%		34	%		35	%		NM						NM
Dividend payout ratio, Underlying^A		451			36			37			33			34			NM						NM
COMMON SHARES OUTSTANDING
Average: Basic		427,718,421			434,684,606			445,703,987			458,154,335			460,713,172			(6,966,185	)		(2	%)		(32,994,751	)		(7	%)
Diluted		429,388,855			436,500,829			447,134,595			459,304,224			462,520,680			(7,111,974	)		(2	)		(33,131,825	)		(7	)
Common shares at period-end		426,586,533			433,121,083			443,913,525			457,903,826			461,116,723			(6,534,550	)		(2	)		(34,530,190	)		(7	)

CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio and headcount data)


	QUARTERLY TRENDS
																1Q20 Change
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19						1Q19
																$/bps			%			$/bps			%
FINANCIAL RATIOS
Net interest margin		3.09	%		3.04	%		3.10	%		3.20	%		3.23	%		5	bps					(14	) bps
Net interest margin, FTE¹		3.10			3.06			3.12			3.21			3.25			4	bps					(15	) bps
Return on average common equity		0.24			8.30			8.35			8.54			8.62			(806	) bps					(838	) bps
Return on average common equity, Underlying^A		0.74			8.36			8.45			8.63			8.71			(762	) bps					(797	) bps
Return on average tangible common equity		0.36			12.39			12.44			12.75			13.00			(1,203	) bps					(1,264	) bps
Return on average tangible common equity, Underlying^A		1.10			12.49			12.58			12.89			13.12			(1,139	) bps					(1,202	) bps
Return on average total assets		0.08			1.08			1.10			1.13			1.11			(100	) bps					(103	) bps
Return on average total assets, Underlying^A		0.14			1.09			1.11			1.14			1.12			(95	) bps					(98	) bps
Return on average total tangible assets		0.09			1.13			1.15			1.17			1.16			(104	) bps					(107	) bps
Return on average total tangible assets, Underlying^A		0.15			1.14			1.16			1.19			1.17			(99	) bps					(102	) bps
Effective income tax rate		24.13			16.76			20.46			21.86			22.42			737	bps					171	bps
Effective income tax rate, Underlying^A		24.52			21.52			22.29			21.89			22.44			300	bps					208	bps
Efficiency ratio		61.10			60.28			59.40			58.41			59.00			82	bps					210	bps
Efficiency ratio, Underlying^A		59.08			58.02			58.22			58.02			58.67			106	bps					41	bps
Noninterest income as a % of total revenue		30	%		30	%		30	%		28	%		27	%		—	bps					300	bps
Noninterest income as a % of total revenue, Underlying^A		30	%		30	%		30	%		28	%		27	%		—	bps					300	bps
CAPITAL RATIOS - PERIOD-END (PRELIMINARY)
CET1 capital ratio		9.4	%		10.0	%		10.3	%		10.5	%		10.5	%
Tier 1 capital ratio		10.5			11.1			11.1			11.3			11.3
Total capital ratio		12.5			13.0			13.0			13.4			13.4
Tier 1 leverage ratio		9.6			10.0			9.9			10.1			10.0
Tangible common equity ratio		8.0			8.7			8.9			9.1			8.8
SELECTED BALANCE SHEET DATA
Loans-to-deposits ratio (period-end balances)^B		95.54	%		95.03	%		94.52	%		94.22	%		94.92	%		51	bps					62	bps
Loans-to-deposits ratio (average balances)^B		95.60			94.63			94.62			95.64			97.70			97	bps					(210	) bps
Full-time equivalent colleagues		17,863			17,997			18,116			18,207			18,078			(134	)		(1	)		(215	)		(1	)

¹	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.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in millions)


	QUARTERLY TRENDS
											1Q20 Change
	1Q20		4Q19		3Q19		2Q19		1Q19		4Q19						1Q19
											$			%			$			%
INTEREST INCOME
Interest and fees on loans and leases	$	1,302	$	1,312	$	1,356	$	1,392	$	1,381	($	10	)		(1	%)	($	79	)		(6	%)
Interest and fees on loans held for sale		15		18		19		15		11		(3	)		(17	)		4			36
Interest and fees on other loans held for sale		9		5		2		2		4		4			80			5			125
Investment securities		147		159		153		164		166		(12	)		(8	)		(19	)		(11	)
Interest-bearing deposits in banks		5		7		8		7		8		(2	)		(29	)		(3	)		(38	)

Total interest income		1,478		1,501		1,538		1,580		1,570		(23	)		(2	)		(92	)		(6	)

INTEREST EXPENSE
Deposits		227		263		297		308		287		(36	)		(14	)		(60	)		(21	)
Short-term borrowed funds^C		1		2		2		4		2		(1	)		(50	)		(1	)		(50	)
Long-term borrowed funds		90		93		94		102		121		(3	)		(3	)		(31	)		(26	)

Total interest expense		318		358		393		414		410		(40	)		(11	)		(92	)		(22	)

Net interest income		1,160		1,143		1,145		1,166		1,160		17			1			—			—

NONINTEREST INCOME
Service charges and fees		118		128		128		126		123		(10	)		(8	)		(5	)		(4	)
Mortgage banking fees		159		80		117		62		43		79			99			116			NM
Card fees		56		64		67		64		59		(8	)		(13	)		(3	)		(5	)
Capital markets fees		43		66		39		57		54		(23	)		(35	)		(11	)		(20	)
Trust and investment services fees		53		52		50		53		47		1			2			6			13
Foreign exchange and interest rate products		24		49		35		35		36		(25	)		(51	)		(12	)		(33	)
Letter of credit and loan fees		34		35		34		33		33		(1	)		(3	)		1			3
Securities gains, net		—		4		3		4		8		(4	)		(100	)		(8	)		(100	)
Other income		10		16		20		28		25		(6	)		(38	)		(15	)		(60	)

Total noninterest income		497		494		493		462		428		3			1			69			16

TOTAL REVENUE		1,657		1,637		1,638		1,628		1,588		20			1			69			4
Provision for credit losses		600		110		101		97		85		490			NM			515			NM
NONINTEREST EXPENSE
Salaries and employee benefits		549		502		508		507		509		47			9			40			8
Equipment and software expense		133		133		130		126		125		—			—			8			6
Outside services		135		142		128		118		110		(7	)		(5	)		25			23
Occupancy		84		88		80		82		83		(4	)		(5	)		1			1
Other operating expense		111		121		127		118		110		(10	)		(8	)		1			1

Total noninterest expense		1,012		986		973		951		937		26			3			75			8

Income before income tax expense		45		541		564		580		566		(496	)		(92	)		(521	)		(92	)
Income tax expense		11		91		115		127		127		(80	)		(88	)		(116	)		(91	)

Net income	$	34	$	450	$	449	$	453	$	439	($	416	)		(92	%)	($	405	)		(92	%)

Net income, Underlying^A	$	59	$	454	$	453	$	458	$	443	($	395	)		(87	%)	($	384	)		(87	%)

Net income available to common stockholders	$	12	$	427	$	432	$	435	$	424	($	415	)		(97	%)	($	412	)		(97	%)

Net income available to common stockholders, Underlying^A	$	37	$	431	$	436	$	440	$	428	($	394	)		(91	%)	($	391	)		(91	%)

CONSOLIDATED BALANCE SHEETS (unaudited)

(in millions)


PERIOD-END BALANCES	AS OF															MARCH 31, 2020 CHANGE
	Mar 31, 2020			Dec 31, 2019			Sept 30, 2019			June 30, 2019			Mar 31, 2019			December 31, 2019						March 31, 2019
																$			%			$			%
ASSETS
Cash and due from banks	$	1,155		$	1,175		$	1,638		$	996		$	923		($	20	)		(2	%)	$	232			25	%
Interest-bearing cash and due from banks		2,903			2,211			2,204			2,039			1,513			692			31			1,390			92
Interest-bearing deposits in banks		280			297			158			186			167			(17	)		(6	)		113			68
Debt securities available for sale, at fair value		22,307			20,613			21,502			21,698			21,504			1,694			8			803			4
Debt securities held to maturity		3,071			3,202			3,319			3,447			3,345			(131	)		(4	)		(274	)		(8	)
Equity securities, at fair value		47			47			47			47			198			—			—			(151	)		(76	)
Equity securities, at cost		927			807			734			706			604			120			15			323			53
Loans held for sale, at fair value		2,911			1,946			1,993			1,750			1,186			965			50			1,725			145
Other loans held for sale		350			1,384			22			455			66			(1,034	)		(75	)		284			NM
Loans and leases^B		127,528			119,088			117,880			116,838			117,615			8,440			7			9,913			8
Less: Allowance for loan and lease losses		(2,171	)		(1,252	)		(1,263	)		(1,227	)		(1,245	)		(919	)		(73	)		(926	)		(74	)

Net loans and leases^B		125,357			117,836			116,617			115,611			116,370			7,521			6			8,987			8
Derivative assets		1,968			807			1,027			833			465			1,161			144			1,503			NM
Premises and equipment		746			761			747			740			746			(15	)		(2	)		—			—
Bank-owned life insurance		1,736			1,725			1,720			1,711			1,705			11			1			31			2
Goodwill		7,050			7,044			7,044			7,040			7,040			6			—			10			—
Due from broker		—			—			257			249			92			—			—			(92	)		(100	)
Other assets^B		5,911			5,878			5,333			5,241			5,418			33			1			493			9

TOTAL ASSETS	$	176,719		$	165,733		$	164,362		$	162,749		$	161,342		$	10,986			7%		$	15,377			10	%

LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits:
Noninterest-bearing	$	32,398		$	29,233		$	29,939		$	28,192		$	28,383		$	3,165			11	%	$	4,015			14	%
Interest-bearing		101,077			96,080			94,775			95,812			95,533			4,997			5			5,544			6

Total deposits		133,475			125,313			124,714			124,004			123,916			8,162			7			9,559			8
Short-term borrowed funds^C		1,059			274			1,077			1,441			679			785			NM			380			56
Derivative liabilities		234			120			161			106			173			114			95			61			35
Deferred taxes, net		782			866			752			767			676			(84	)		(10	)		106			16
Long-term borrowed funds:
FHLB advances		8,007			5,008			3,007			2,258			2,508			2,999			60			5,499			219
Senior debt		6,775			7,382			8,143			7,624			7,558			(607	)		(8	)		(783	)		(10	)
Subordinated debt and other debt		1,655			1,657			1,656			1,656			1,659			(2	)		—			(4	)		—

Total long-term borrowed funds		16,437			14,047			12,806			11,538			11,725			2,390			17			4,712			40
Due to broker		—			—			206			257			93			—			—			(93	)		(100	)
Other liabilities		2,782			2,912			2,795			2,619			2,549			(130	)		(4	)		233			9

TOTAL LIABILITIES		154,769			143,532			142,511			140,732			139,811			11,237			8			14,958			11
STOCKHOLDERS’ EQUITY
Preferred stock:
$25.00 par value, 100,000,000 shares authorized for each of the periods presented		1,570			1,570			1,133			1,133			1,132			—			—			438			39
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		18,901			18,891			18,876			18,860			18,847			10			—			54			—
Retained earnings		6,011			6,498			6,229			5,959			5,672			(487	)		(7	)		339			6
Treasury stock, at cost		(4,623	)		(4,353	)		(3,953	)		(3,453	)		(3,333	)		(270	)		(6	)		(1,290	)		(39	)
Accumulated other comprehensive income (loss)		85			(411	)		(440	)		(488	)		(793	)		496			NM			878			NM

TOTAL STOCKHOLDERS’ EQUITY		21,950			22,201			21,851			22,017			21,531			(251	)		(1)			419			2

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	176,719		$	165,733		$	164,362		$	162,749		$	161,342		$	10,986			7%		$	15,377			10	%

Memo: Total tangible common equity	$	13,639		$	13,893		$	13,976		$	14,141		$	13,649		($	254	)		(2	%)	($	10	)		—	%

LOANS AND DEPOSITS

(in millions)


PERIOD-END BALANCES	AS OF										MARCH 31, 2020 CHANGE
	Mar 31, 2020		Dec 31, 2019		Sept 30, 2019		June 30, 2019		Mar 31, 2019		Dec 31, 2019						March 31, 2019
											$			%			$			%
LOANS AND LEASES
Commercial	$	49,092	$	41,479	$	41,356	$	41,156	$	41,497	$	7,613			18	%	$	7,595			18	%
Commercial real estate		14,502		13,522		12,820		13,123		13,372		980			7			1,130			8
Leases		2,438		2,537		2,557		2,684		2,820		(99	)		(4	)		(382	)		(14	)

Total commercial loans and leases		66,032		57,538		56,733		56,963		57,689		8,494			15			8,343			14

Residential mortgages^B		18,721		19,083		19,699		19,192		19,174		(362	)		(2	)		(453	)		(2	)
Home equity^D		12,992		13,154		13,423		13,640		13,870		(162	)		(1	)		(878	)		(6	)
Automobile		12,157		12,120		12,070		12,000		11,992		37			—			165			1
Education		10,887		10,347		9,729		9,305		9,274		540			5			1,613			17
Other retail^E		6,739		6,846		6,226		5,738		5,616		(107	)		(2	)		1,123			20

Total retail loans^B		61,496		61,550		61,147		59,875		59,926		(54	)		—			1,570			3

Total loans and leases^B	$	127,528	$	119,088	$	117,880	$	116,838	$	117,615	$	8,440			7	%	$	9,913			8	%


Loans held for sale, at fair value		2,911		1,946		1,993		1,750		1,186		965			50			1,725			145
Other loans held for sale		350		1,384		22		455		66		(1,034	)		(75	)		284			NM

Loans and leases and loans held for sale^B	$	130,789	$	122,418	$	119,895	$	119,043	$	118,867	$	8,371			7	%	$	11,922			10	%


DEPOSITS
Demand	$	32,398	$	29,233	$	29,939	$	28,192	$	28,383	$	3,165			11	%	$	4,015			14	%
Checking with interest		25,358		24,840		24,403		25,021		23,482		518			2			1,876			8
Regular savings		14,702		13,779		13,479		13,495		13,239		923			7			1,463			11
Money market accounts		42,972		38,725		36,826		35,329		35,972		4,247			11			7,000			19
Term deposits		18,045		18,736		20,067		21,967		22,840		(691	)		(4	)		(4,795	)		(21	)

Total deposits	$	133,475	$	125,313	$	124,714	$	124,004	$	123,916	$	8,162			7	%	$	9,559			8	%

AVERAGE BALANCE SHEETS

(in millions)


	QUARTERLY TRENDS
																1Q20 Change
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19						1Q19
																$			%			$			%
ASSETS
Interest-bearing cash and due from banks and deposits in banks	$	1,859		$	1,970		$	1,474		$	1,229		$	1,497		($	111	)		(6	%)	$	362			24	%

Taxable investment securities		25,339			25,305			25,635			25,620			25,136			34			—			203			1
Non-taxable investment securities		4			5			5			5			5			(1	)		(20	)		(1	)		(20	)

Total investment securities		25,343			25,310			25,640			25,625			25,141			33			—			202			1

Investment securities and interest-bearing deposits		27,202			27,280			27,114			26,854			26,638			(78	)		—			564			2

Commercial		43,152			42,012			41,476			41,755			41,562			1,140			3			1,590			4
Commercial real estate		13,876			13,103			12,892			13,379			13,272			773			6			604			5
Leases		2,482			2,546			2,615			2,745			2,873			(64	)		(3	)		(391	)		(14	)

Total commercial loans and leases		59,510			57,661			56,983			57,879			57,707			1,849			3			1,803			3

Residential mortgages^B		18,866			19,495			19,405			19,232			19,094			(629	)		(3	)		(228	)		(1	)
Home equity^D		13,042			13,265			13,501			13,754			14,075			(223	)		(2	)		(1,033	)		(7	)
Automobile		12,173			12,099			12,036			11,984			12,070			74			1			103			1
Education		10,610			9,888			9,459			9,235			9,069			722			7			1,541			17
Other retail^E		6,854			6,497			5,873			5,699			5,634			357			5			1,220			22

Total retail loans^B		61,545			61,244			60,274			59,904			59,942			301			—			1,603			3

Total loans and leases^B		121,055			118,905			117,257			117,783			117,649			2,150			2			3,406			3
Loans held for sale, at fair value		1,890			2,209			1,970			1,528			1,035			(319	)		(14	)		855			83
Other loans held for sale		799			517			134			158			191			282			55			608			NM

Total interest-earning assets^B		150,946			148,911			146,475			146,323			145,513			2,035			1			5,433			4
Allowance for loan and lease losses		(1,708	)		(1,260	)		(1,226	)		(1,247	)		(1,243	)		(448	)		(36	)		(465	)		(37	)
Goodwill		7,046			7,044			7,044			7,040			7,018			2			—			28			—
Other noninterest-earning assets^B		10,893			9,951			9,817			9,373			9,127			942			9			1,766			19

TOTAL ASSETS	$	167,177		$	164,646		$	162,110		$	161,489		$	160,415		$	2,531			2	%	$	6,762			4	%

LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Checking with interest	$	24,612		$	23,545		$	23,422		$	23,919		$	22,987		$	1,067			5	%	$	1,625			7	%
Money market accounts		39,839			38,809			37,161			35,228			35,209			1,030			3			4,630			13
Regular savings		14,201			13,582			13,442			13,324			12,626			619			5			1,575			12
Term deposits		18,616			19,788			20,951			22,292			21,127			(1,172	)		(6	)		(2,511	)		(12	)

Total interest-bearing deposits		97,268			95,724			94,976			94,763			91,949			1,544			2			5,319			6
Short-term borrowed funds^C		644			504			600			863			698			140			28			(54	)		(8	)
FHLB advances		5,138			3,259			2,478			3,155			5,694			1,879			58			(556	)		(10	)
Senior debt		7,263			7,914			8,000			7,573			7,391			(651	)		(8	)		(128	)		(2	)
Subordinated debt and other debt		1,656			1,657			1,656			1,658			1,651			(1	)		—			5			—

Total long-term borrowed funds		14,057			12,830			12,134			12,386			14,736			1,227			10			(679	)		(5	)

Total borrowed funds		14,701			13,334			12,734			13,249			15,434			1,367			10			(733	)		(5	)

Total interest-bearing liabilities		111,969			109,058			107,710			108,012			107,383			2,911			3			4,586			4
Total demand deposits		29,362			29,928			28,945			28,389			28,465			(566	)		(2	)		897			3
Other liabilities		4,053			3,819			3,789			3,536			3,584			234			6			469			13

TOTAL LIABILITIES		145,384			142,805			140,444			139,937			139,432			2,579			2			5,952			4

STOCKHOLDERS’ EQUITY		21,793			21,841			21,666			21,552			20,983			(48	)		—			810			4

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	167,177		$	164,646		$	162,110		$	161,489		$	160,415		$	2,531			2	%	$	6,762			4	%

Memo: Total loans and leases, including loans held for sale	$	123,744		$	121,631		$	119,361		$	119,469		$	118,875		$	2,113			2	%	$	4,869			4	%
Total deposits (interest-bearing and demand)	$	126,630		$	125,652		$	123,921		$	123,152		$	120,414		$	978			1	%	$	6,216			5	%
Total average tangible common equity	$	13,484		$	13,660		$	13,788		$	13,670		$	13,233		($	176	)		(1	%)	$	251			2	%

AVERAGE ANNUALIZED YIELDS AND RATES

(in millions, except rates)


	QUARTERLY TRENDS
	1Q20					4Q19					3Q19					2Q19					1Q19
	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		1.12	%	$	5		1.49	%	$	7		2.09	%	$	8		2.16	%	$	7		2.19	%	$	8

Taxable investment securities		2.32			147		2.47			159		2.38			153		2.56			164		2.64			166
Non-taxable investment securities		2.60			—		2.60			—		2.60			—		2.60			—		2.60			—

Total investment securities		2.32			147		2.47			159		2.38			153		2.56			164		2.64			166

Investment securities and interest-bearing deposits					152					166					161					171					174

Commercial		3.82			417		3.95			424		4.17			442		4.45			471		4.43			460
Commercial real estate		3.96			139		4.26			142		4.70			155		4.91			166		4.98			165
Leases		2.83			18		2.77			18		2.85			19		2.89			19		2.85			21

Total commercial loans and leases		3.81			574		3.97			584		4.23			616		4.48			656		4.48			646

Residential mortgages^B		3.47			164		3.40			165		3.53			171		3.65			176		3.67			175
Home equity^D		4.69			152		4.73			159		5.24			178		5.28			180		5.27			183
Automobile		4.34			131		4.32			132		4.25			129		4.19			125		4.04			120
Education		5.64			149		5.76			143		5.89			141		5.97			137		5.99			134
Other retail^E		7.77			132		7.83			129		8.21			121		8.24			118		8.87			123

Total retail loans^B		4.75			728		4.72			728		4.88			740		4.92			736		4.96			735

Total loans and leases^B		4.29			1,302		4.36			1,312		4.56			1,356		4.71			1,392		4.72			1,381
Loans held for sale, at fair value		3.28			15		3.38			18		3.71			19		3.93			15		4.35			11
Other loans held for sale		4.31			9		3.89			5		6.42			2		5.67			2		7.03			4

Total interest-earning assets^B		3.91			1,478		3.98			1,501		4.15			1,538		4.30			1,580		4.34			1,570
INTEREST-BEARING LIABILITIES
Checking with interest		0.60			37		0.71			42		0.88			52		0.96			57		0.91			52
Money market accounts		0.94			93		1.12			110		1.24			116		1.30			114		1.26			110
Regular savings		0.51			18		0.52			17		0.59			20		0.62			21		0.56			17
Term deposits		1.70			79		1.88			94		2.05			109		2.09			116		2.08			108

Total interest-bearing deposits		0.94			227		1.09			263		1.24			297		1.30			308		1.27			287
Short-term borrowed funds^C		0.76			1		1.07			2		1.43			2		1.81			4		1.37			2
FHLB advances		1.87			24		1.98			16		1.92			12		2.63			21		2.70			39
Senior debt		2.69			49		3.02			60		3.21			65		3.41			64		3.53			65
Subordinated debt and other debt		4.13			17		4.20			17		4.13			17		4.08			17		4.06			17

Total long-term borrowed funds		2.56			90		2.91			93		3.07			94		3.30			102		3.27			121

Total borrowed funds		2.48			91		2.84			95		3.00			96		3.20			106		3.18			123

Total interest-bearing liabilities		1.14			318		1.30			358		1.45			393		1.54			414		1.54			410
INTEREST RATE SPREAD		2.77					2.68					2.70					2.77					2.80

NET INTEREST MARGIN AND NET INTEREST INCOME		3.09	%	$	1,160		3.04	%	$	1,143		3.10	%	$	1,145		3.20	%	$	1,166		3.23	%	$	1,160

NET INTEREST MARGIN AND NET INTEREST INCOME, FTE¹		3.10	%	$	1,164		3.06	%	$	1,147		3.12	%	$	1,150		3.21	%	$	1,172		3.25	%	$	1,166
Memo: Total deposit costs		0.72	%	$	227		0.83	%	$	263		0.95	%	$	297		1.00	%	$	308		0.97	%	$	287

¹	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 - CONSUMER BANKING

(in millions, except ratio data)


	QUARTERLY TRENDS
CONSUMER BANKING																1Q20 Change
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19						1Q19
																$/bps			%			$/bps			%
Net interest income	$	793		$	796		$	799		$	799		$	788		($	3	)		—	%	$	5			1	%
Noninterest income		357			296			336			277			247			61			21			110			45

Total revenue		1,150			1,092			1,135			1,076			1,035			58			5			115			11
Noninterest expense		738			718			718			715			700			20			3			38			5

Profit before provision for credit losses		412			374			417			361			335			38			10			77			23
Provision for credit losses		97			97			83			78			67			—			—			30			45

Income before income tax expense		315			277			334			283			268			38			14			47			18
Income tax expense		79			68			83			70			66			11			16			13			20

Net income	$	236		$	209		$	251		$	213		$	202		$	27			13	%	$	34			17	%

AVERAGE BALANCES
Total assets	$	68,415		$	68,069		$	66,365		$	65,485		$	65,007		$	346			1	%	$	3,408			5	%
Total loans and leases^1,B		65,343			65,157			63,553			62,678			62,163			186			—			3,180			5
Deposits		85,228			85,477			85,595			85,660			82,569			(249	)		—			2,659			3
Interest-earning assets^B		65,393			65,208			63,605			62,731			62,216			185			—			3,177			5
KEY METRICS
Net interest margin		4.88	%		4.85	%		4.99	%		5.11	%		5.14	%		3	bps					(26	) bps
Efficiency ratio		64.16			65.74			63.28			66.43			67.62			(158	) bps					(346	) bps
Loans-to-deposits ratio (period-end balances)^B		72.94			74.15			73.61			71.13			71.17			(121	) bps					177	bps
Loans-to-deposits ratio (average balances)^B		74.07			73.37			72.11			71.57			74.27			70	bps					(20	) bps
Return on average total tangible assets		1.39			1.22			1.50			1.31			1.26			17	bps					13	bps

¹	Includes loans held for sale.

SEGMENT FINANCIAL HIGHLIGHTS - CONSUMER BANKING, CONTINUED

(in millions, except ratio data)


	QUARTERLY TRENDS
																1Q20 Change
	1Q20			4Q19			3Q19			2Q19			1Q19			4Q19						1Q19
																$/bps			%			$/bps			%
MORTGAGE BANKING FEES
Production revenue	$	136		$	61		$	80		$	49		$	31		$	75			123	%	$	105			NM
Mortgage servicing revenue		17			16			12			9			14			1			6			3			21
MSR valuation changes, net of hedge impact		6			4			25			4			(2	)		2			50			8			NM

Total mortgage banking fees	$	159		$	81		$	117		$	62		$	43		$	78			96	%	$	116			NM

Gain on sale of secondary originations		2.36	%		0.98	%		1.40	%		1.13	%		1.28	%		138	bps					108	bps

RESIDENTIAL REAL ESTATE ORIGINATIONS
Retail	$	2,523		$	3,196		$	2,771		$	2,115		$	1,313		($	673	)		(21	%)	$	1,210			92	%
Third Party		4,813			5,750			5,080			3,921			2,260			(937	)		(16	)		2,553			113