First Horizon (FHN) investor relations material

Executive summary

• Achieved third consecutive quarter of 15.1% adjusted ROTCE, with strong profitability and execution on strategic priorities.

• Net income available to common shareholders rose 21% year-over-year to $257 million, with EPS up $0.11 year-over-year to $0.53.

• Focused on relationship-driven growth, disciplined pricing, and leveraging a diversified business model with counter-cyclical businesses.

• Continued investment in talent, technology, and tools to drive efficiency and client value.

• CET1 ratio decreased to 10.53% due to $233 million in share repurchases.

Financial highlights

• Net interest income (FTE) was $670 million, up 6% year-over-year, but down $9 million sequentially.

• Adjusted pre-provision net revenue improved 8% year-over-year to $360 million.

• Adjusted fee income was $195 million, up $13 million year-over-year, but down $18 million sequentially.

• Adjusted expenses were $505 million, up $23 million year-over-year, down $36 million sequentially.

• Tangible book value per share increased 9% year-over-year to $14.34.

Outlook and guidance

• Maintains full-year outlook with updated near-term CET1 target of 10.5%.

• Revenue guidance of 3% to 7% growth, with upside potential if mortgage refi activity increases.

• Expense outlook remains flat year-over-year, with variability expected quarter to quarter.

• Guidance reiterates mid-single digit balance sheet growth and positive operating leverage.

• Management emphasized continued focus on safety, soundness, profitability, and growth.