First Horizon's Q3 Net Income Jumps 20% on Strong Credit Performance

Ticker: FHN-PH · Form: 10-Q · Filed: Nov 6, 2025 · CIK: 36966

Sentiment: bullish

Topics: Regional Banking, Earnings Growth, Credit Quality, Shareholder Returns, Capital Management, Net Interest Income, Financial Performance

Related Tickers: FHN

TL;DR

**FHN's Q3 results are a clear buy signal, with net income up 20% and credit quality improving, showing strong operational execution in a competitive banking landscape.**

AI Summary

FIRST HORIZON CORP (FHN-PH) reported a strong financial performance for the quarter ended September 30, 2025, with net income attributable to controlling interest increasing by 20.2% to $262 million, up from $218 million in the prior year's quarter. Basic earnings per common share rose significantly to $0.50 from $0.40. Net interest income saw a healthy increase of 7.5% to $674 million, compared to $627 million in the same period last year, driven by a favorable provision for credit losses of -$5 million, a substantial improvement from a $35 million provision in 3Q 2024. Total assets grew to $83.192 billion from $82.152 billion at December 31, 2024, while total deposits slightly decreased to $65.525 billion from $65.581 billion. The company also actively managed its capital, repurchasing 8,603,476 common shares for $191 million during the quarter and redeeming $77 million of Series B preferred stock. Accumulated other comprehensive loss improved to -$849 million from -$1,128 million at year-end 2024, reflecting net unrealized gains on securities available for sale of $56 million.

Why It Matters

First Horizon's robust Q3 performance, marked by a 20.2% increase in net income and a negative provision for credit losses, signals strong asset quality and effective risk management, which is crucial for investor confidence in the banking sector. The strategic share repurchases and preferred stock redemption demonstrate a commitment to enhancing shareholder value and optimizing capital structure, potentially making FHN-PH more attractive compared to competitors facing higher credit provisions. For employees, a healthy financial position can mean greater job security and potential for growth. Customers benefit from a stable bank, though the slight dip in total deposits suggests ongoing competition for funding. The broader market may see this as a positive indicator for regional banks, especially concerning credit quality trends.

Risk Assessment

Risk Level: medium — While net income increased and the provision for credit losses was negative, indicating strong asset quality, the company's total deposits slightly decreased to $65.525 billion from $65.581 billion. This modest decline in deposits, coupled with an increase in short-term borrowings to $4.271 billion from $3.400 billion, suggests potential funding cost pressures or increased competition for deposits, which could impact net interest margin in future periods.

Analyst Insight

Investors should consider increasing their exposure to FHN-PH, given the significant 20.2% increase in net income and the favorable -$5 million provision for credit losses. The company's active capital management, including $191 million in common stock repurchases and $77 million in preferred stock redemption, signals a strong commitment to shareholder returns.

Financial Highlights

revenue
$674M
total Assets
$83.192B
total Debt
$5,599M
net Income
$262M
eps
$0.50
cash Position
$912M
revenue Growth
+7.5%

Revenue Breakdown

SegmentRevenueGrowth
Interest and fees on loans and leases$955M-4.1%
Interest on investment securities$71M+18.3%
Total noninterest income$215M+7.5%

Key Numbers

Key Players & Entities

FAQ

What were First Horizon's key financial highlights for Q3 2025?

First Horizon's net income attributable to controlling interest increased by 20.2% to $262 million in Q3 2025, up from $218 million in Q3 2024. Basic earnings per common share rose to $0.50 from $0.40, and net interest income grew 7.5% to $674 million.

How did First Horizon's credit quality perform in the latest quarter?

First Horizon demonstrated strong credit quality, reporting a negative provision for credit losses of -$5 million in Q3 2025. This is a significant improvement compared to a $35 million provision for credit losses in the same period of 2024.

What was the trend in First Horizon's total assets and deposits?

First Horizon's total assets increased to $83.192 billion as of September 30, 2025, from $82.152 billion at December 31, 2024. However, total deposits slightly decreased to $65.525 billion from $65.581 billion over the same period.

What capital management actions did First Horizon take in Q3 2025?

In Q3 2025, First Horizon repurchased 8,603,476 common shares for $191 million. Additionally, the company redeemed $77 million of Series B preferred stock, demonstrating active capital optimization.

How did First Horizon's accumulated other comprehensive income (loss) change?

First Horizon's accumulated other comprehensive loss improved to -$849 million as of September 30, 2025, from -$1,128 million at December 31, 2024. This improvement was partly driven by net unrealized gains on securities available for sale of $56 million.

What are the primary risks First Horizon faces according to the filing?

The filing highlights risks such as global economic conditions, interest rate movements, market and monetary fluctuations, competition, and changes in financial services regulation. Specifically, the slight decrease in deposits and increase in short-term borrowings could indicate funding pressures.

What was First Horizon's total interest income and expense for Q3 2025?

For Q3 2025, First Horizon reported total interest income of $1,077 million, down from $1,119 million in Q3 2024. Total interest expense was $403 million, a decrease from $492 million in Q3 2024, contributing to the higher net interest income.

How did noninterest income and expense trends affect First Horizon's Q3 2025 results?

Total noninterest income for First Horizon increased to $215 million in Q3 2025 from $200 million in Q3 2024. Total noninterest expense also rose to $550 million from $511 million, primarily due to higher personnel expense and contributions.

What is the significance of the negative provision for credit losses for First Horizon?

A negative provision for credit losses of -$5 million indicates that First Horizon either recovered more from previously charged-off loans or reduced its allowance for credit losses due to an improved economic outlook or better asset quality, which directly boosts net income.

What is First Horizon's outlook based on this 10-Q filing?

While the filing contains forward-looking statements, the strong Q3 2025 performance, particularly the increase in net income and improved credit quality, suggests a positive operational trajectory. However, investors should monitor deposit trends and funding costs for potential future impacts.

Risk Factors

Industry Context

The banking industry is currently navigating a complex environment characterized by evolving interest rate policies, ongoing digital transformation, and heightened regulatory scrutiny. While net interest margins have shown resilience for some institutions like FHN, competition for deposits and loans remains intense. The focus on fee income diversification and efficient operations is crucial for sustained profitability.

Regulatory Implications

First Horizon Corp operates under the purview of multiple regulatory bodies, including the Federal Reserve and state banking authorities. Compliance with capital adequacy requirements, consumer protection laws, and anti-money laundering regulations is paramount. Any missteps in these areas could lead to significant penalties and operational restrictions.

What Investors Should Do

  1. Monitor net interest margin trends
  2. Assess credit loss provisions
  3. Evaluate capital return strategies
  4. Analyze noninterest income drivers

Key Dates

Glossary

Net interest income
The difference between the interest income generated by a bank and the interest it pays out to its depositors and lenders. (A core measure of a bank's profitability from its lending and borrowing activities. FHN reported $674 million for 3Q25, up 7.5%.)
Provision for credit losses
An expense set aside by a financial institution to cover potential losses from loans that may default. (A negative provision of -$5 million in 3Q25 indicates an improvement in credit quality or a release of previously set-aside funds, boosting net income.)
Accumulated other comprehensive income (loss)
A component of shareholders' equity that includes unrealized gains or losses on investments, foreign currency translations, and pension adjustments that have not been included in net income. (FHN's AOCI improved to -$849 million from -$1,128 million, showing positive unrealized gains on securities available for sale.)
Securities available for sale
Investment securities that a company intends to hold for an indefinite period but may sell before maturity if needed for liquidity or to manage interest rate risk. (Unrealized gains of $56 million on these securities contributed to the improvement in Accumulated Other Comprehensive Income.)
Basic earnings per common share (EPS)
The net income available to common shareholders divided by the weighted average number of outstanding common shares. (FHN reported basic EPS of $0.50 for 3Q25, up from $0.40 in the prior year, indicating increased profitability for common shareholders.)
Common stock repurchased
The act of a company buying back its own shares from the open market. (FHN repurchased 8,603,476 shares for $191 million in 3Q25, a common strategy to return capital to shareholders and potentially boost EPS.)

Year-Over-Year Comparison

Compared to the prior year's quarter, First Horizon Corp has demonstrated significant improvement. Net income attributable to controlling interest surged by 20.2% to $262 million, and basic EPS rose to $0.50 from $0.40. Net interest income saw a healthy 7.5% increase, bolstered by a substantial improvement in the provision for credit losses, which swung from a $35 million expense to a $5 million benefit. Total assets have grown, and the company has actively managed its capital through share repurchases and preferred stock redemptions, while also improving its accumulated other comprehensive loss position.

Filing Stats: 4,905 words · 20 min read · ~16 pages · Grade level 20 · Accepted 2025-11-06 16:23:39

Key Financial Figures

Filing Documents

Forward-Looking Statements

Forward-Looking Statements 3 Non-GAAP Information 5

Financial Information

Part I. Financial Information 6

Financial Statements

Item 1. Financial Statements 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 73

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 111

Controls and Procedures

Item 4. Controls and Procedures 111

Other Information

Part II. Other Information 112

Legal Proceedings

Item 1. Legal Proceedings 112

Risk Factors

Item 1A. Risk Factors 112

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 112

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 112

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 112

Other Information

Item 5. Other Information 113

Exhibits

Item 6. Exhibits 113

Signatures

Signatures 115 GLOSSARY Table of Contents Glossary The following is a list of common acronyms and terms used throughout this report: ACL Allowance for credit losses AFS Available for sale AIR Accrued interest receivable ALCO Asset/Liability Committee ALLL Allowance for loan and lease losses ALM Asset/liability management AOCI Accumulated other comprehensive income ASC FASB Accounting Standards Codification Associate Person employed by FHN ASU Accounting Standards Update Bank First Horizon Bank C&I Commercial, financial, and industrial loan portfolio CECL Current expected credit loss CME Chicago Mercantile Exchange CMO Collateralized mortgage obligations CODM Chief Operating Decision-Maker Company First Horizon Corporation Corporation First Horizon Corporation CRE Commercial Real Estate DTA Deferred tax asset DTL Deferred tax liability EAD Exposure at default EPS Earnings per share Fannie Mae Federal National Mortgage Association FASB Financial Accounting Standards Board FDIC Federal Deposit Insurance Corporation Federal Reserve Federal Reserve Board Fed Federal Reserve Board FHA Federal Housing Administration FHLB Federal Home Loan Bank FHN First Horizon Corporation FHNF FHN Financial; FHN's fixed income division FICO Fair Isaac Corporation First Horizon First Horizon Corporation FRB Federal Reserve Bank or the Federal Reserve Board Freddie Mac Federal Home Loan Mortgage Corporation FTE Fully taxable equivalent FTP Funds transfer pricing FTRESC FT Real Estate Securities Company, Inc. GAAP Generally accepted accounting principles (U.S.) GHG Greenhouse Gas GNMA Government National Mortgage Association or Ginnie Mae GSE Government sponsored enterprises, in this report references Fannie Mae and Freddie Mac HELOC Home equity line of credit HFS Held for Sale HTM Held to maturity IBKC IBERIABANK Corporation IBKC merger FHN's merger of equals with IBKC that closed July 2020 ISDA International Swap

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Table of Contents

Forward-Looking Statements

Forward-Looking Statements This report, including materials incorporated into it, 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. Forward-looking statements often use words such as "believe," "expect," "anticipate," "intend," "estimate," "should," "is likely," "will," "going forward," and other similar expressions that indicate future events and trends. Forward-looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, operational, economic, and competitive uncertainties and contingencies, many of which are beyond our control, and many of which, with respect to future business decisions and actions (including acquisitions and divestitures), are subject to change and could cause our actual future results and outcomes to differ materially from those contemplated by forward-looking statements or historical performance. While there is no assurance that any list of uncertainties and contingencies is complete, examples of factors which could cause actual results to differ from those contemplated by forward-looking statements or historical performance include: global, national, and local economic and business conditions, including economic recession or depression; the stability or volatility of values and activity in the residential housing and commercial real estate markets; expectations of and actual timing and amount of interest rate movements, including the slope and shape of the yield curve, which can have a significant impact on a financial services institution; market

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Table of Contents 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 listed above or presented elsewhere in this report, those factors listed in material incorporated by reference into this report, and other factors not listed. In evaluating forward-looking statements and assessing our prospects, readers of this report should carefully consider the factors mentioned above along with the additional risks and factors discussed in Item 2 of Part I and Item 1A of Part II of this report, and in the forepart, and in Items 1, 1A, and 7, of FHN's most recent Annual Report on Form 10-K, among others. Readers should also consult any further disclosures of a forward-looking nature in any subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, or Current Reports on Form 8-K. 4 3Q25 FORM 10-Q REPORT NON-GAAP INFORMATION Table of Contents Non-GAAP Information Certain measures included in this report are "non-GAAP," meaning they are not presented in accordance with U.S. GAAP and also are not codified in U.S. banking regulations currently applicable to FHN. Although other entities may use calculation methods that differ from those used by FHN for non-GAAP measures, FHN's management believes such measures are relevant to understanding the financial condition, capital position, and financial results of FHN and its business segments. Non-GAAP measures are reported to FHN's management and Board of Directors through various internal reports. The non-GAAP measures presented in this report include: pre-provision net revenue, return on average tangible common equity, tangible common equity to tangible assets, and tangible book value per common share. Table I.2.26 appe aring in the MD&A (Item 2 of Part I) of this report provides a reconciliation of non-GAAP items presented in this report t

, ITEM 1. FINANCIAL STATEMENTS

PART I, ITEM 1. FINANCIAL STATEMENTS Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets (unaudited) 7 Consolidated Statements of Income (unaudited) 8 Consolidated Statements of Comprehensive Income (unaudited) 10 Consolidated Statements of Changes in Equity (unaudited) 11 Consolidated Statements of Cash Flows (unaudited) 13 Notes to the Consolidated Financial Statements (unaudited) 14 Note 1 Basis of Presentation and Accounting Policies 14 Note 2 Investment Securities 16 Note 3 Loans and Leases 19 Note 4 Allowance for Credit Losses 27 Note 5 Mortgage Banking Activity 30 Note 6 Goodwill and Other Intangible Assets 31 Note 7 Preferred Stock 32 Note 8 Components of Other Comprehensive Income (Loss) 33 Note 9 Earnings Per Share 35 Note 10 Contingencies and Other Disclosures 36 Note 11 Retirement Plans 38 Note 12 Business Segment Information 39 Note 13 Variable Interest Entities 46 Note 14 Derivatives 49 Note 15 Master Netting and Similar Agreements - Repurchase, Reverse Repurchase, and Securities Borrowing Transactions 56 Note 16 Fair Value of Assets and Liabilities 58 6 3Q25 FORM 10-Q REPORT

, ITEM 1. FINANCIAL STATEMENTS

PART I, ITEM 1. FINANCIAL STATEMENTS Table of Contents CONSOLIDATED BALANCE SHEETS (Unaudited) September 30, December 31, (Dollars in millions, except per share amounts) 2025 2024 Assets Cash and due from banks $ 912 $ 906 Interest-bearing deposits with banks 1,228 1,538 Federal funds sold and securities purchased under agreements to resell 774 631 Trading securities 2,070 1,387 Securities available for sale at fair value 8,102 7,896 Securities held to maturity (fair value of $ 1,079 and $ 1,083 , respectively) 1,229 1,270 Loans held for sale (including $ 139 and $ 85 at fair value, respectively) 501 551 Loans and leases 63,058 62,565 Allowance for loan and lease losses ( 777 ) ( 815 ) Net loans and leases 62,281 61,750 Premises and equipment 553 574 Goodwill 1,510 1,510 Other intangible assets 114 143 Other assets 3,918 3,996 Total assets $ 83,192 $ 82,152 Liabilities Noninterest-bearing deposits $ 16,023 $ 16,021 Interest-bearing deposits 49,502 49,560 Total deposits 65,525 65,581 Trading liabilities 662 550 Short-term borrowings 4,271 3,400 Term borrowings 1,328 1,195 Other liabilities 2,162 2,315 Total liabilities 73,948 73,041 Equity Preferred stock, Non-cumulative perpetual, no par value; authorized 5,000,000 shares; issued 8,750 and 16,750 shares, respectively 349 426 Common stock, $ 0.625 par value; authorized 700,000,000 shares; issued 500,367,901 and 524,280,412 shares, respectively 313 328 Capital surplus 4,288 4,808 Retained earnings 4,848 4,382 Accumulated other comprehensive loss, net ( 849 ) ( 1,128 ) FHN shareholders' equity 8,949 8,816 Noncontrolling interest 295 295 Total equity 9,244 9,111 Total liabilities and equity $ 83,192 $ 82,152 See accompanying notes to consolidated financial statements. 7 3Q25 FORM 10-Q REPORT

, ITEM 1. FINANCIAL STATEMENTS

PART I, ITEM 1. FINANCIAL STATEMENTS Table of Contents CONSOLIDATED STATEMENTS OF INCOME Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions, except per share data; shares in thousands) (Unaudited) 2025 2024 2025 2024 Interest income Interest and fees on loans and leases $ 955 $ 996 $ 2,770 $ 2,923 Interest and fees on loans held for sale 8 10 26 27 Interest on investment securities 71 60 211 179 Interest on trading securities 23 22 66 64 Interest on other earning assets 20 31 62 91 Total interest income 1,077 1,119 3,135 3,284 Interest expense Interest on deposits 351 434 1,017 1,231 Interest on trading liabilities 5 6 19 18 Interest on short-term borrowings 28 35 94 104 Interest on term borrowings 19 17 59 50 Total interest expense 403 492 1,189 1,403 Net interest income 674 627 1,946 1,881 Provision for credit losses ( 5 ) 35 65 140 Net interest income after provision for credit losses 679 592 1,881 1,741 Noninterest income Fixed income 57 47 149 138 Deposit transactions and cash management 43 45 125 134 Brokerage, management fees and commissions 26 27 77 76 Card and digital banking fees 19 19 55 58 Other service charges and fees 14 13 40 40 Trust services and investment management 13 12 38 36 Mortgage banking income 15 9 33 28 Securities gains (losses), net — 1 1 2 Other income 28 27 67 69 Total noninterest income 215 200 585 581 Noninterest expense Personnel expense 296 282 856 862 Net occupancy expense 36 33 105 95 Computer software 34 30 100 89 Operations services 24 25 71 69 Legal and professional fees 24 15 54 47 Deposit insurance expense 11 11 36 51 Advertising and public relations 12 14 36 37 Equipment expense 10 10 32 32 Amortization of intangible assets 9 11 29 33 Contract employment and outsourcing 11 12 27 40 Communications and delivery 8 8 25 24 Contributions 23 4 25 6 Other expense 52 56 133 142 Total noninterest expense 550 511 1,529 1,527 Income before income taxe

, ITEM 1. FINANCIAL STATEMENTS

PART I, ITEM 1. FINANCIAL STATEMENTS Table of Contents CONSOLIDATED STATEMENTS OF INCOME (continued) Basic earnings per common share $ 0.50 $ 0.40 $ 1.37 $ 1.07 Diluted earnings per common share $ 0.50 $ 0.40 $ 1.36 $ 1.06 Weighted average common shares 504,863 534,222 509,990 544,356 Diluted average common shares 510,351 537,971 515,919 547,629 See accompanying notes to consolidated financial statements. 9 3Q25 FORM 10-Q REPORT

, ITEM 1. FINANCIAL STATEMENTS

PART I, ITEM 1. FINANCIAL STATEMENTS Table of Contents CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended September 30, Nine Months Ended September 30, (Dollars in millions) (Unaudited) 2025 2024 2025 2024 Net income $ 266 $ 223 $ 732 $ 624 Other comprehensive income, net of tax: Net unrealized gains on securities available for sale 56 232 225 167 Net unrealized gains on cash flow hedges 5 58 48 26 Net unrealized gains on pension and other postretirement plans 2 2 6 6 Other comprehensive income 63 292 279 199 Comprehensive income 329 515 1,011 823 Comprehensive income attributable to noncontrolling interest 4 5 12 15 Comprehensive income attributable to controlling interest $ 325 $ 510 $ 999 $ 808 Income tax expense of items included in other comprehensive income: Net unrealized gains on securities available for sale $ 18 $ 75 $ 73 $ 53 Net unrealized gains on cash flow hedges 2 19 16 9 Net unrealized gains on pension and other postretirement plans 1 1 2 2 See accompanying notes to consolidated financial statements. 10 3Q25 FORM 10-Q REPORT

, ITEM 1. FINANCIAL STATEMENTS

PART I, ITEM 1. FINANCIAL STATEMENTS Table of Contents CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Nine Months Ended September 30, 2025 Preferred Stock Common Stock (In millions, except share and per share data) (unaudited) Shares Amount Shares Amount Capital Surplus Retained Earnings Accumulated Other Comprehensive Income (Loss) (a) Noncontrolling Interest Total Balance, December 31, 2024 16,750 $ 426 524,280,412 $ 328 $ 4,808 $ 4,382 $ ( 1,128 ) $ 295 $ 9,111 Net income — — — — — 218 — 4 222 Other comprehensive income (loss) — — — — — — 145 — 145 Cash dividends declared: Preferred stock — — — — — ( 5 ) — — ( 5 ) Common stock ($ 0.15 per share) — — — — — ( 78 ) — — ( 78 ) Common stock repurchased (b) — — ( 17,657,334 ) ( 11 ) ( 354 ) — — — ( 365 ) Excise tax on common stock repurchased — — — — ( 3 ) — — — ( 3 ) Common stock issued for: Stock options exercised and restricted stock awards — — 692,106 — 3 — — — 3 Stock-based compensation expense — — — — 18 — — — 18 Dividends declared - noncontrolling interest of subsidiary preferred stock — — — — — — — ( 4 ) ( 4 ) Balance, March 31, 2025 16,750 426 507,315,184 317 4,472 4,517 ( 983 ) 295 9,044 Net income — — — — — 241 — 4 245 Other comprehensive income (loss) — — — — — — 71 — 71 Cash dividends declared: Preferred stock — — — — — ( 8 ) — — ( 8 ) Common stock ($ 0.15 per share) — — — — — ( 79 ) — — ( 79 ) Common stock repurchased (b) — — ( 1,455,166 ) ( 1 ) ( 26 ) — — — ( 27 ) Common stock issued for: Stock options exercised and restricted stock awards — — 2,975,762 — — — — — — Stock-based compensation expense — — — 2 13 — — — 15 Dividends declared - noncontrolling interest of subsidiary preferred stock — — — — — — — ( 4 ) ( 4 ) Balance, June 30, 2025 16,750 426 508,835,780 318 4,459 4,671 ( 912 ) 295 9,257 Net income — — — — — 262 — 4 266 Other comprehensive income (loss) — — — — — — 63 — 63 Cash dividends declared: Preferred stock — — — — — ( 5 ) — — ( 5 ) Common stock

, ITEM 1. FINANCIAL STATEMENTS

PART I, ITEM 1. FINANCIAL STATEMENTS Table of Contents CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (continued) Nine Months Ended September 30, 2024 Preferred Stock Common Stock (In millions, except share and per share data) (unaudited) Shares Amount Shares Amount Capital Surplus Retained Earnings Accumulated Other Comprehensive Income (Loss) (a) Noncontrolling Interest Total Balance, December 31, 2023 26,750 $ 520 558,838,694 $ 349 $ 5,351 $ 3,964 $ ( 1,188 ) $ 295 $ 9,291 Adjustment to reflect adoption of ASU 2023-02 — — — — — 8 — — 8 Net income — — — — — 192 — 5 197 Other comprehensive income (loss) — — — — — — ( 83 ) — ( 83 ) Cash dividends declared: Preferred stock — — — — — ( 8 ) — — ( 8 ) Common stock ($ 0.15 per share) — — — — — ( 84 ) — — ( 84 ) Common stock repurchased (b) — — ( 11,051,980 ) ( 7 ) ( 152 ) — — — ( 159 ) Excise tax on common stock repurchased — — — — ( 2 ) — — — ( 2 ) Common stock issued for: Stock options exercised and restricted stock awards — — 850,272 — — — — — — Stock-based compensation expense — — — 1 17 — — — 18 Dividends declared - noncontrolling interest of subsidiary preferred stock — — — — — — — ( 5 ) ( 5 ) Balance, March 31, 2024 26,750 520 548,636,986 343 5,214 4,072 ( 1,271 ) 295 9,173 Net income — — — — — 199 — 5 204 Other comprehensive income (loss) — — — — — — ( 10 ) — ( 10 ) Cash dividends declared: Preferred stock — — — — — ( 8 ) — — ( 8 ) Common stock ($ 0.15 per share) — — — — — ( 84 ) — — ( 84 ) Series D preferred stock redemption ( 10,000 ) ( 94 ) — — — ( 6 ) — — ( 100 ) Excise tax on preferred stock redemption — — — — — ( 1 ) — — ( 1 ) Common stock repurchased (b) — — ( 14,896,091 ) ( 9 ) ( 219 ) — — — ( 228 ) Excise tax on common stock repurchased — — — — ( 1 ) — — — ( 1 ) Common stock issued for: Stock options exercised and restricted stock awards — — 3,134,855 1 1 — — — 2 Stock-based compensation expense — — — 1 12 — — — 13 Dividends declared - noncontrolling interest of

, ITEM 1. FINANCIAL STATEMENTS

PART I, ITEM 1. FINANCIAL STATEMENTS Table of Contents CONSOLIDATED STATEMENTS OF CASH FLOWS Nine months ended September 30, (Dollars in millions) (Unaudited) 2025 2024 Operating Activities Net income $ 732 $ 624 Adjustments to reconcile net income to net cash from operating activities: Provision for credit losses 65 140 Deferred income tax expense (benefit) 56 ( 21 ) Depreciation and amortization of premises and equipment 42 41 Amortization of intangible assets 29 33 Net other amortization (accretion) ( 24 ) 8 Net (increase) decrease in trading securities ( 18 ) 604 Net increase in derivatives ( 4 ) ( 3 ) Stock-based compensation expense 48 44 Securities (gains) losses, net ( 1 ) ( 2 ) Loans held for sale: Purchases and originations ( 2,148 ) ( 2,072 ) Gross proceeds from settlements and sales 1,524 1,392 Gain (loss) due to fair value adjustments and other 2 ( 57 ) Other operating activities, net ( 71 ) 346 Total adjustments ( 500 ) 453 Net cash provided by operating activities 232 1,077 Investing Activities Proceeds from maturities of securities available for sale 711 614 Purchases of securities available for sale ( 624 ) ( 271 ) Proceeds from prepayments of securities held to maturity 43 44 Proceeds from sales of premises and equipment 3 8 Purchases of premises and equipment ( 26 ) ( 27 ) Net increase in loans and leases ( 534 ) ( 1,221 ) Net decrease in in

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