First Horizon (FHN) 47th Annual Raymond James Institutional Investor Conference summary

Key achievements and financial performance

• Achieved sustained 15% ROIC in Q3 and Q4, reaching mid-teens ROIC a year ahead of target.

• Maintained strong credit quality and reported close to 3% net loan growth while upholding credit discipline.

• Returned about $1.2 billion of capital to shareholders last year, including share buybacks and a dividend increase.

• CET1 ratio targeted to reach 10.5% this year, balancing loan growth and share buybacks.

• Fee income is stable, but loan and deposit growth are lagging initial expectations for the year.

Regulatory and industry developments

• Regulatory environment has stabilized with no new rules proposed, reducing operational distractions.

• Anticipates potential increase in asset thresholds for regulatory requirements, allowing more focus on organic growth.

• Maintains strong relationships and regular dialogue with regulators, supporting a safe and sound banking environment.

Technology and innovation

• Early participant in the Carry Network, collaborating on a stablecoin initiative for regional banks.

• Actively preparing for new regulations around stablecoins and digital assets, aiming to be ready once rules are finalized.

• AI investments are driving efficiency, quality, and scale, with flat expense guidance despite growth initiatives.

• AI tools are enhancing credit underwriting, data analytics, and client targeting, leading to improved marketing outcomes.

• AI is heavily used for fraud detection, enabling rapid response to suspicious activities.