First Horizon (FHN) investor relations material

Executive summary

• Adjusted EPS for Q2 2026 was $0.54, up $0.09 year-over-year and $0.01 sequentially, reflecting continued earnings momentum and disciplined execution.

• Net income available to common shareholders reached $260 million, up 12% year-over-year and 1% sequentially.

• Return on common equity was 12.3% and return on tangible common equity was 15.2% for the quarter.

• The organization remains committed to building long-term client relationships and delivering resilient earnings through a counter-cyclical business model.

Financial highlights

• Net interest income (NII) rose to $679 million, up $9 million sequentially and 5% year-over-year, with net interest margin at 3.49%, down 3 bps sequentially but up 9 bps year-over-year.

• Adjusted pre-provision net revenue (PPNR) was $364 million, up 1% sequentially and 8% year-over-year.

• Average loan balances grew by $1.5 billion quarter-over-quarter; period-end loans increased by $953 million, driven by $1 billion in commercial loan growth.

• Fee income decreased $1 million sequentially (excluding deferred comp) but rose $14 million year-over-year, with fixed income revenues down quarter-over-quarter but up 8% year-over-year.

• Adjusted expenses (excluding deferred comp) increased $6 million sequentially, mainly due to higher personnel and marketing costs.

Outlook and guidance

• Full-year expectations are reiterated, with revenue growth guidance in the 3%-7% range and mid-single digit balance sheet growth, dependent on rate environment and countercyclical business performance.

• NIM is expected to remain in the mid to high 340s for 2026, with slight compression possible but positive NII growth anticipated.

• Expenses are projected to remain flat for the remainder of the year, with no repeat of prior year one-time costs.

• Net charge-offs projected in the 0.15–0.25% range, with CET1 ratio targeted at ~10.5%.

• Deposit costs are expected to trend up slightly in a competitive environment, with seasonal effects in Q2 and Q3.