First Horizon (FHN) Goldman Sachs 2024 U.S. Financial Services Conference summary

Strategic priorities and financial targets

• Aims to achieve over 15% ROTCE within two to three years, leveraging a balanced business model and strong capital ratios.

• Focuses on profitability before growth, with detailed plans to improve cross-selling, relationship income, and asset mix.

• Completed integration of IBERIABANK and upgraded Treasury systems to enhance capabilities.

• Maintains a top five market share in 11 of its top 20 MSAs, targeting growth in high-GDP, high-population markets.

• Actively hires talent to support growth and defend market share in competitive environments.

Business model and market outlook

• Operates a diversified, balanced model with asset-sensitive net interest income and liability-sensitive fee businesses.

• Expects low single-digit loan growth and slightly higher deposit growth in 2025, with optimism for economic momentum.

• Sees more clarity post-election but notes ongoing uncertainty around rates, tax policy, and regulation.

• Countercyclical businesses offset interest rate swings, providing stability through cycles.

• Mortgage and fixed income businesses expected to rebound as rates normalize.

Revenue, expenses, and capital management

• Projects flat to 4% top-line revenue growth for 2025, driven by loan growth and rate cut assumptions.

• Expense growth guidance of 2%-4%, with investments shifting toward technology and infrastructure.

• Maintains expense discipline, offsetting inflation and variable compensation with efficiency initiatives.

• Plans to reduce CET1 capital ratio from above 11% to 10.5%-11% as conditions stabilize, using share buybacks as a lever.

• Authorized $1 billion share repurchase, with $146 million already executed.