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18July2024|7:35PMEDT

AmericasBanks:Regional:KeyTakeawaysfromKEY,MTB,SNV,BKUandDFS2Q24earnings

KEY:Stillsees10+%NIIgrowthin4Q24andtailwindsinto2025

RyanM.Nash,CFA

+1(212)902-8963|ryan.nash@

KEY’s2Q24EPSresultsweremixed,withaslightbeatonfeesandlowerexpenses

GoldmanSachs&Co.LLC

offsettingsofterNIIwhilecreditwaslargelyin-line.ThefocuswasonitsupdatedFY

ChristianDeGrasse,CFA

+1(212)902-8484|

24guidance,whereKEYlargelyreiteratedmostitems(fees,expenses,NCOs)but

christian.degrasse@GoldmanSachs&Co.LLC

didtakedownloangrowthexpectations(andtookupdepositgrowth);however,on

HulashGoyal

thecallKEYnotedthatNIIwaslikelytohitthelowendofitsrange(basedonthe

+1(212)934-6084|hulash.goyal@GoldmanSachsIndiaSPL

forwardcurve)andloangrowthhasn’tyetseenaninflection.Thus,giventheloan

growthtrajectoryremainsuncertainanditseemsmorelikelygivenratesNIIwill

comeatthelowend,sharesunderperformedpeers(-4.01%vs.-1.82%KRE).

Lookingahead,whileKEYcontinuestohavestrongNIItailwinds,wethinkthe

marketisgoingtowanttoseethemcomingtofruitionandthereforeweseeseveralputsandtakes,as:1)NIIcameinsofterthanexpected,andwiththeforward

implyingtworatecutsby4Q24,itwilllikelybringNIIdowntothelow-end(-5%forfull-year)andcouldputits+10%YoYtargetin4Q24atrisk,2)whileKEY’sswapandtreasurytailwindwilllargelyendby1Q25,however,wenoteKEYstillhassome

idiosyncraticdriversofNIIin2025+with$20bnofassetsrepricingin2025ata

blendedrateoflow~3%,withreinvestmentratesinthe5+%range,whichshould

furthersupportNIIand3)whileloangrowthhasbeenelusive,KEYsounded

confidentthatbasedonthepipelinesitisseeing,weshouldseetheinflectioninthenextquarterorsoand4)credithasthusfarremainedcontainedwithNCOsbeingatthelowerendofthe30-40bpsguidefor1H24.GiventhatKEYisguidingtothe

_

high-endofits30-40bpsrange,therecouldbesomeconservatisminthere.So

whenweputittogether,wethinkthenear-termsoftnessinNIIisdrivenbyslower

loangrowth(whichisbeingfeltindustry-widetovaryingdegrees)aswellastheratecuts,andwestillseeKEYhavingtailwindstoPPNRandstrongoperatingleveragein

2025.Thus,withsharestradingat1.0xtangiblebookexAOCI(vs.1.3xpeers)wethinkifKEYcanhititsNIIexpectations,seeareturnofloangrowthandhave

acceleratingoperatingleverage,sharesshouldperformwell.

GoldmanSachsdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthis

report.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.ForRegACcertificationandotherimportantdisclosures,seetheDisclosureAppendix,orgoto

/research/hedge.html.Analystsemployedbynon-USaffiliatesarenotregistered/qualifiedasresearchanalystswithFINRAintheU.S.

GoldmanSachsAmericasBanks:Regional

Exhibit1:KEYGuidanceSummary

2024GuidanceTableKEY

2024Medium/Long-term

NII

FeeIncome

ExpensesandTax

Balancesheet

CapitalandCredit

_

Securities

-NIIdown-2-5%withgrowth/accelerationin2H24(notedupLSDvs4Q23annualizedrunrateand10%in4Q24vs4Q23),ifgettwocutswillbeclosertolowerendofrange-Depositbetastoreachmid-50sinahigherforlonger

scenario

-DDAmixpressuretomoderatebutcontinuein2024solongasratesarehigh,

-IfSeptratecut,assumed~20%betain4Q

-Feesup5%+,upsidewithcapitalmarketnormalization(reiterated),expectingbetter2Hvs1H

-ModeratepositiveOLwithmeaningfuloperatingleveragein2H24

-Noninterestexpenserelativelystable(reiterated),ex-FDIC

-Avgloansdown7-8%(vs5-7%prior),EOPdown4-5%(vsrelativelypriorstable)vs.YE23

-StableYoYEOPbalancesimply2-3%growthvs1Q24-Avgdepositsrelativelystablewithclientdepositsup(vsflattodown2%prior)

-AEAtoberelativelyflatrestofyear

-NCOs30-40bpspreviouslyindicatedhigherendgivenlowerloandenominator

-NCOsmodestly/graduallyincreasingvs.currentlevels-ReportedCET1candriftupto~11%

-Paceofincreaseincritstoslowin2H,assumingnomacroworsening

-$2bnofquarterlysecuritiescashflowsrollingoffat~mid2%

-added$750mnofspotpayfixedsecuritieshedgesbringingtotalto$9.4bn

-~$950mnonincrementalann.NIIpick-up

expectedinthenext12monthsfromswapandsecuritiesmaturities

-Sept/Deccutswouldbeneartermheadwind

butexpecttorecapturein2025asdepositbetalagcatchesup

-Puttingonfwdstartingswapsin~4%range,

favorablevsthe1.8%rollingoffin2025andthe2.8%in2026

-$20bnofadditionalassetrepricingnextyearatlow3%including~$5.2bnofswapscomingoffat1.8%.~$11bnofloanscomingoffat4.15%,and~$4.2bnoffixedratesecuritiesat2.75%

-Normalizedrangeofann.capitalmarkets

revenueis$600-$650mn,doubledigitCAGRovertime

-Positiveoperatingleverage-Cashefficiency:LT-54-56%

-2025expensesshouldbeclosertonormalizedrun-rate

-ROTCE:LT-16-19%

-AOCIburndownof$1.9bnor39%byYE26underfwdcurve,$1.7bnexanychangesinrates

Source:Companydata,GoldmanSachsGlobalInvestmentResearch

MTB:ReturningtorepurchaseshareswhileNIIshouldcontinuetohavetailwinds

MTBreported2Q24resultsthatoverallwerebetterthanexpectedasNII,feesand

expensesallcomeinbetterthanitsmid-Juneupdate.Additionally,itscreditwasbetterthanexpectedamidimprovementinNPLsandcriticizedassets,whichhadincreased3straightquarters.Inadditiontocredit,thefocuswasonitsguidance,whereitupdateditsNIIguide($6.85-$6.9bnvs.$6.85bn+/-),whichsomeviewedasconservativegivenlimitedgrowthexpectedin2H24.Giventhesolidguidanceandimprovedcreditmetrics,sharesoutperformedpeers(+1.66%vs.KRE-1.82%).

Lookingahead,whileshareshavebeenstrongYTD,weseeseveralreasonswhy

fundamentalsremainattractiveas:1)NIIcameinstrongerthanexpectedandwhile

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GoldmanSachsAmericasBanks:Regional

thereweresome1xitems(non-accrualinterest),webelieveitcontinuestohaveseveraltailwindstofurthersupportNIIgrowthincludingfixedrateassetre-pricing,levelingoff

ofdepositcostsandaccretiveforwardstartingswaps.ThisalongwithloangrowthcouldleadtoitsNIIguideprovingconservative,2)criticizedassetsfell~4.2%QoQ(-80bps),

largelydrivenbyCREandgiventheexpectationforfallingrateslaterintheyear,wemayhaveseenthepeakincriticizedassets,whichshouldsupportmorecapitalreturnand

potentialtobringdowncapitalratios(moreonthis)and3)lastly,whileMTB’sinitial

buybackof$400mnin2Hwaslessthanthestreetandappearsconservative(targetingsimilarcapitallevelorhigher),itnotedthatitplanstoparticipateinCCARnextyear(notrequiredto)whichwetookasasignalthatithopesitsSCBcoulddeclineagainandit

canincreasecapitalreturns.Sowhenweputitalltogether,sharestradejustabove10x2025Eand1.65xP/TBV,bothin-linewithpeersdespitestrongercapitalandimproving

credit.Ifthemarketcangetcomfortablewiththetrajectoryofcriticizedassets,NIIcontinuestoinflectanditcanreturnmorecapital,wecouldseeMTBrestorethe

premiumthatitisaccustomedtotradingat.

Exhibit2:MTBGuidanceSummary

GuidanceTable

MTB

3Q242024Medium/Long-term

NII

FeeIncome

ExpensesandTax

LoanGrowth

_

Deposits

-Otherfeescouldcomedownfrom~5-10%2Qrunrate

-CREconcentration(151%)tocontinuetodecline,expecttoreachtargetedlevelin1-2quarters

-FTENIIof$6.85bn-$6.90bnvsatleast$6.85bnpreviously,reflectingtworatecuts

-Onpathforhigh3.5%NIM

-Avgcash~$25bnandsecurities~$30bnin2H24

-Feeincometobein$2.3-2.4bnrange(reiterated)withgrowthintrustincomefromstrongmarketactivity

-Noninterestexpensetobe$5.25-5.3bn(reiterated)(exincrementalFDICassessment)

-Couldseehigheroutsideprocessingandprofessionalservices

-FYavgloansin$134-136bnrangewithgrowthinC&IandconsumeranddeclinesinCREandresimortgage

-Avgdepositsinthe$162-164bnrange,focusingongrowingcustomerdeposits

-Expectdownsidebetastobeinthe30-40%rangeforfirstfewcuts

-WillbelargelyoutofbrokeredCDsbyYE

-Feelgoodaboutdepositcostsflattodowninto2025

-ConfidentaboutabilitytogrowNIIin2025

-Added$5bnoffwdstartinghedgesin1H24thatbecomeactivein2025

CapitalandCredit

Securities

-$200mmofbuyback

-Expecttomaintaincapitalatcurrentlevels-Continuedfocusedonbringingdowncritsandnonaccurals

-$47mmofpreferreddividendsin3Q

-NCOs~40bps(33bpsinFY23),withnormalizationinC&Iandconsumerloanportfolios

-$200mmofbuybacksin3Qand4Q

-Expecttomaintaincapitalratiosatleastatcurrentlevels-Taxratetobe24-24.5%excl.discretetaxbenefitin1Q24-Preferreddividendsof~$47mmin3Qand~$36mmin4Q,reflectingSeriesJissuanceinMayandupcomingSeriesEredemptioninAugust

-$2.8bnofsecuritiesmaturein2H24at2.5%,expecttoreinvestathigheryields(5.16%newmoneyyieldin2Q)targetting3yearduration

Source:Companydata,GoldmanSachsGlobalInvestmentResearch

SNV:LookingforNCOimprovementin2H24

SNVreportedsolid2Q24results,withamodestcorePPNRbeatdrivenbyahigherNII(NIM)andstrongercorefeeswhilecoreexpenseswerein-line.Thefocuswasonfullyearguide,whichimpliedmodestPPNRupsidealthoughitwasbasedonaratecurvewithonecutin2025.WithintheFYguide,whileSNVtookdownitsloananddeposit

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GoldmanSachsAmericasBanks:Regional

growthexpectations,itraisedPPNRguidanceduetohigherNIIandfees,andpartiallyoffsetbyhigherexpenses.Thisalongwithapositivemessageonimprovingcreditwaswellreceived,withSNVpointingto~HSDbpsofimprovementinNCOsvs.thestreetfor2H24,resultinginsharesmodestlyoutperforming(-1.01%vs.-1.82%KRE)

OverallthiswasadecentquarterforSNV,andlookingahead,whilethereareseveralmovingpieceswecomeoutpositiveonfundamentalsas:1)creditappearstobe

cominginbetterthanexpectedandSNV’sNCOguideofflattodownin2H24(vs.36bpsin1H24)iswellbelowstreetexpectationsoflowtomid40bpsandinadditionSNValsolowereditsACLsignalingconfidenceinitscreditquality.Thiscouldrepresentan

inflectionpointforitscredit,2)excludingthesecuritiesrestructuring,underlyingNII

lookstobecominginalittlesofterthanexpected,andtherecouldbesomedownsidetorevenueastheguideincludesjustaDecembercutandthemarketsareindicating

multiplecuts(includingoneinSeptember),3)whileslowerloangrowthispressuringNIIinthenear-term,SNVhastailwindsin2025fromswaproll-off(~$1.2bnthrough1Q26)

andfixedraterepricingthatshouldprovidesupporttoNIIgrowthintheoutyear.So

whenweputittogether,wethinkthequarterwassolidparticularlywithcredit,andtheNIIguideislikelyaroundtherangeofexpectations.Withsharestradingrelativelyin-linewithpeers(10.0x2025EPS,1.25xP/TBVexAOCIbothin-line),wethinkifSNVcan

demonstratepositiveoperatingleveragewhilekeepingcreditcontainedsharesshouldhaveupsideovertime.

_

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GoldmanSachsAmericasBanks:Regional

Exhibit3:SNVGuidanceSummary

NII

FeeIncome

Revenue

Expenses

Loans

3Q24

-ExpectNIMexpansionin3Q

-Expect$310mmrangedrivenbyincreaseinpersonelthatislargelyadaycountissue

2024GuidanceTable

SNV

2024

-Peakdepositcostbetaof49%

-NIMexpansiondrivenbyfixedassetrepricingand4Qhedgematurities

-Flatratescenariowouldbeaccretive

-BasedonratecutinDecember,expecttoendtheyearatornear3.30%NIM

--IfpivotedtoSeptratecut,wouldbepressureonmargininSeptandOctoberleadingto$5-7mnNIIimpactbetweenSeptandDecemberratecut

-ExpectMSDadjgrowthsupportedbyrobustcap

marketspipeline;expect2Htobeatorsimilarto1H

-Adjrevenueof-3%to0%(vs-3%to+1%prior)

assuming25bppointratecutinDecember,consistentwithJunedotplot

-Relativelystabletotalcostofdepositsfromcurrentlevels

-Adj.expensegrowthof1-3%(vsrelativelyflatprior)exFDICspecialassessmentsin4Q23,1Q24,2Q24

-Increaseinexpectationsduetotechinvestments,legalcostsfromresolvedproblemcreditsandhigherincentiveaccuralsfromimprovedearningsprojections

-EOPloansup0-2%(vs0-3%prioroff$43bn)

-SNC/thirdpartyconsumerloansarerunningoffat~60mn/qtr

-DeclinesinInstitutionalCREasmarket-activity

paydownsaccelerate,couldsee$800-$900/QrunrateofCREpaydownsin2H

-StabilityinSeniorHousingandNationalAccountsbalances

Medium/Long-term

-Fixedraterepricingtohave~20bpsbenefitby4Q25vs4Q24

-Expectexpensegrowthtobemorenormalized,higherthan2%

Deposits/Funding

CapitalandCredit

Securities

-AverageDDAbalancestodeclinegiven2Qpositionwhichwillbeaheadwind

-ExpecttoseestabilityinACLfollowing2Q

-Realized1/2ofsecuritiesbenefitin2Qandwillseefullbenefitin3Q

-Fixedrateassetrepricingbenefit-Spotyieldof3.32inJune

-EOPCoredepositsup2-4%(2-6%previously)

supportedbyseasonalbenefitsandCoreC&Ibusinesslineexpansion

-Brokereddepositsstabletodecline

-StabletomodestdeclinesinoverallDDAbalancesasseasonalbenefitsandnewaccountproductionsupportbalances

-NIBpressuretoslow

-Depositproductionratesforthequarter3.77%CET1in10-10.5%range(high-end)

-Expectbuybacksthrough2H24-Taxrateof21%

-NCOstobeflattodownvs1H24

-Expect~35%AOCIaccretionby2Q26

Source:Companydata,GoldmanSachsGlobalInvestmentResearch

_

BKU:Trendingtowards30%DDAandexpectingNIMtoexitinthehigh2’s

BKUreportedastrongearningsbeatascorePPNRcamein5%aheadofconsensus

($96.0mnvs$91.5mn)drivenbybetterthanexpectedrevenues($254mnvs$247mn)

andprovisionsalsocameinlowervsexpectationsdrivinganEPSbeat($0.73vs$0.65).BKUbroadlyreiteratedits2024guidancehoweveritwasthequarterlyexpansioninNIM(+15bpsQoQ;+7bpsvsconsensus)andDDAgrowth(+11%QoQ)whichwerein

particularlywellreceived.Additionally,BKUnotedthatitsspotIBdepositcostson6/30wereflatvs.3/31forthefirstquartersinceratesstartedrising.Asaresultofthe

quarterlybeatandpositiveupdateonNIM,sharesoutperformedpeers(+4.47%vs-1.82%KRE).

Overall,thiswasasolidquarterforBKUandcouldcontinuetosupportsharesinthe

near-term.Whilewelargelycomeoutpositivepostresults,thereareseveralmoving

piecesas:1)BKU’sNIMexpanded15bpsto2.72%anditwasdrivenbygrowthinDDA(+11.4%)QoQ)anditsexpectationsarecallingforfurtherexpansionandtoexitinthe

high2’s.ThisshouldsupportcontinuedsequentialNIIexpansionoverthenextfew

quarters,2)BKUsawstrongloangrowthinthequarter,alsooutperformingpeers,and

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GoldmanSachsAmericasBanks:Regional

thebalancesheetreturningtogrowthcouldbeasolidtailwindtothetop-linein2H24and2025,and3)OfficeNPAsincreasedby~$50mndrivenbytwocredits(~$1.8bn

book,~$309mnofwhichismedical)andthoughbothspecificcreditsarereservedfor,theoverallpathofthereserveislikelyhigher(peershaveofficeACLs5-10%+,thoughBKUbelievesitsbookishigherquality)whichcouldpressurenear-termearningsat

somepoint.Sowhenweputittogether,shareshavehadastrongrun(+27%MTD;

tradeat~0.90xadjTBV)andBKUputupasolidquarterthatcouldprovidesome

near-termsupport.Whilewethinknear-termvaluationisoutpacingthepathhigherinreturns,ifBKUisabletokeepgrowingDDA,returntogrowth,andkeepcredit

contained,returnscouldimproveovertimeandfurthersupportshares.

Exhibit4:BKUGuidanceSummary

2024GuidanceTable

BKU

3Q242024Medium/Long-term

NII

FeeIncome

ExpensesandTax

Balancesheet

CapitalandCredit

Securities

-Spot(6/30)IBdepositrateof3.29%aretrackingflatvs3/31

-Taxrateof26.5%ex-discreteitems

-ExpectNIItogrowMSD-HSD

-ExpectNIMtoexitinhigh-2%range(2.72%in1Q)withexpansionexpectedover2H24vs2Q24

-Leaseincometohave$8-$9mnquarterlyrun-rate

-Expectmodestgrowthinservicechargesandothernon-interestincomedrivenbydrivenbycustomerderivativesbusiness,commercialcardbusinessandsyndicationfees-ExpectexpensestogrowatMSDYoY

-Expensestogrowin2H24vs1H24drivenbyrefurbishmentcotsrelatedtorailcars

-Expectearningassetstoberelativelyflat

-ExpectcommercialloanstogrowatHSDdrivenbydoubledigitgrowthinC&IandlessergrowthinCRE

-CoredepositsexbrokeredtogrowatHSD

-Resi.mortgagetocontinuedecliningatthesamepaceas2023(down~$800mn)

-ACL(%)tocontinuegoingupsteadilytocloseto~1%drivenbycontinueremixing

-Taxrateof26.5%ex-discreteitems

-Securitiesbooktostopdecliningandreturntogrowthatsomepointin2024

-ExpecttoreturntoAEAgrowthin2025

-TargetingDDAmixtobe30%+inMT

-1%ROAanddoubledigitROEonaconsistentbasis

Source:Companydata,GoldmanSachsGlobalInvestmentResearch

_

DFS(NotRated):Updatingestimatespostearnings

WeupdateourearningsestimatesforDFS2Qresultsandupdatedguidance(seebelowfordetailsonguidance),wherewereviseourcoreEPSestimatesfrom

$10.85/$14.60/$16.85to$13.20/14.80/16.50toaccountfor2Qresultsandourupdatedviewsoncreditandrates.WeareNotRatedonDFS.

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GoldmanSachsAmericasBanks:Regional

Exhibit5:DFSguidancesummary

2024GuidanceTableDFS

2024Medium/LongTerm

NII

Feegrowth

ExpensesandTax

LoanGrowth

Deposits

_

CapitalandCredit

Other

-PrivatestudentloansaleisaccretivetoNIMby~10bps

-ExpectNIMof11.1-11.4%(vs10.7-11.0%prior)drivenbyhighercardyieldswithlowerpromomixbalancemixand

studentloansale

-Each25bpscutreducesNIMby~5bps

-Depositbetainthemid-70sinadecliningrateenvironment

-ExpectsalesvolumestobeflattoslightlynegativeYoY

-Totaloperatingexpensetobeupmidsingledigitsex$799mnexbuildinreserveforcardmisclassificationremediation

-Expectefficiencyratiotobe<40%(excardmisclassification)-Costofcomplianceandriskmgmt,actionstobe~$500mn

withanupwardbias

-Studentloansaleincludes$50mmofNCOgeographydelta

-ExpectloanstobedownLSD(vsupLSDprior)withthedeltabeingdrivenbyprivatestudentloansaleof$10.1bn

-Normalizedloangrowthtobe2-4xGDPgrowth

-Targetdepositfundingtobe70%+

-NCOstopeakandplateauin2H24

-FYaverageNCOrateof4.9-5.2%(remainsunchanged,butstudentloansaleincreasesNCOsby~10bps)

-ACL(%)isatornearpeaklevelsat7.32%

-FutureNCOsfromfuturestudentloanswillgothruOpExratherthancreditlosses

-Latefeeruleisexpectedtohavenegative$600mnpre-taximpact

-SaleofstudentloanstoreduceRWAsby~$10bnandfreeup~$1.5-$2bncapital

-Sharerepurchasessuspendedthroughmergerclosing,dividendnottoexceed$0.70pershare

-ExpectshareholdervoteonmergerlaterthisFall

-Expectmergertobecompletedin4tranchesbyendofyear

Source:Companydata,GoldmanSachsGlobalInvestmentResearch

Valuation:

KEY(Buy):WeareBuyratedonKEYwitha12-month$18pricetarget(vs.$16.50prior)basedonamultipleof12.5x(10.5xprior)2025P/E.Wereviseour24/25/26coreEPS

estimatesfrom$1.07/$1.60/$1.90to$1.10/$1.45/$1.80reflectingupdatedguidanceandourupdatedviewsonbalancesheetoptimization,rates,fundingcosts,credit,andloan

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GoldmanSachsAmericasBanks:Regional

growth.Keyrisksincludeworsedepositrepricingandmixshift,prolongednegativeoperatingleverage,andhighercreditlosses.

MTB(Neutral):WeareNeutral-ratedonMTBwitha12-month$180pricetarget(vs$175prior)isbasedonamultipleof11.5x2025P/E(11xprior)reflectingourupdatedviewsoncreditandcapitalreturn.Wereviseour24/25/26EPSestimatesfrom

$13.80/$16.25/$18.50to$14.05/$15.70/$18.00,incorporatingnewmanagement

commentaryaswellasourrevisedexpectationsaroundloangrowthandmargin.Keyriskstothedownsideincludedepositcompetitionleadingtohigherthanexpected

betas.Keyupsiderisksincludemixshiftstabilizationandbetterthanexpectedcreditperformance.

SNV(Neutral):WeareNeutral-ratedonSNVwitha$51(from$45prior)12-monthpricetargetbasedonarevised2025P/Emultipleof11x(10xprior)withthechangedrivenbyourupdatedthoughtsoncredit,NII,growth,andrates.Wereviseour24/25/26coreEPSestimatesfrom$2.41/$4.55/$4.85to$4.20/$4.60/$4.90incorporating2Qresults,new

managementcommentaryandourupdatedthoughtsonfundingmix,depositbetas,expenses,rates,andcredit.Keyupsiderisksincludelowcostdepositinflows,better

thanexpecteddepositbetas,positiveoperatingleverage,andprolongedcredit

outperformance.Keydownsiderisksincludeworsethananticipatedcredit,rates,weakerfeeincome.

BKU(Sell):WeareSell-ratedonBKUwitha$33(from$29prior)12-monthpricetargetbasedonarevised2025P/Emultipleof10x(9xprior)withthechangedrivenbyour

updatedthoughtsoncredit,reserves,growth,andrates.Wereviseour24/25/26coreEPSestimatesfrom$2.73/$3.20/$3.35to$2.95/$3.25/$3.45incorporating2Qresults,newmanagementcommentaryandourupdatedthoughtsonfundingmix,deposit

betas,expenses,rates,andcredit.Keyupsiderisksincludelowcostdepositinflows,betterthanexpecteddepositbetas,positiveoperatingleverage,andprolongedcreditoutperformance.

_

DFS(NotRated):WeareNotRatedonDFS.

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GoldmanSachsAmericasBanks:Regional

DisclosureAppendix

RegAC

We,RyanM.Nash,CFA,ChristianDeGrasse,CFAandHulashGoyal,herebycertifythatalloftheviewsexpressedinthisreportaccuratelyreflectourpersonalviewsaboutthesubjectcompanyorcompaniesanditsortheirsecurities.Wealsocertifythatnopartofourcompensationwas,isorwillbe,directlyorindirectly,relatedtothespecificrecommendationsorviewsexpressedinthisreport.

Unlessotherwisestated,theindividualslistedonthecoverpageofthisreportareanalystsinGoldmanSachs’GlobalInvestmentResearchdivision.

GSFactorProfile

TheGoldmanSachsFactorProfileprovidesinvestmentcontextforastockbycomparingkeyattributestothemarket(i.e.ourcoverageuniverse)anditssectorpeers.Thefourkeyattributesdepictedare:Growth,FinancialReturns,Multiple(e.g.valuation)andIntegrated(acompositeofGrowth,FinancialReturnsandMultiple).Growth,FinancialReturnsandMultiplearecalculatedbyusingnormalizedranksforspecificmetricsforeachstock.The

normalizedranksforthemetricsarethenaveragedandconvertedintopercentilesfortherelevantattribute.Theprecisecalculationofeachmetricmayvarydependingonthefiscalyear,ind