First Horizon (FHN) Morgan Stanley US Financials Conference 2026 summary

Key drivers of performance

• Focus on achieving $100 million in PPNR from the existing portfolio, with early wins in NII and deepening client relationships through treasury management and wealth advisory services.

• Investments of $100 million over three years in technology, fraud, and cybersecurity are now generating revenue lift.

• Loan growth of 3% and NII growth of 6% year-over-year, with asset sensitivity benefiting from rate movements.

• Relationship banking and cross-sell strategies are central to sustainable ROTCE above 15%.

• Fee income growth is balanced across wealth, treasury management, and specialty lending, with a target of $100 million in incremental run-rate by Q4.

Market and client sentiment

• Client sentiment remains positive, especially in the Southeast, which is experiencing strong economic and project growth.

• Commercial clients are eager to invest and expand but face labor and supply constraints.

• CRE loan demand is stabilizing, with new projects emerging in key Southeast markets.

• Competition is steady, with both new entrants and traditional peers, and private credit being closely monitored.

Deposit and funding strategy

• Deposit competition is intense, especially in the Southeast, with seasonal and structural factors influencing pricing.

• Deposit costs are up low single digits quarter-over-quarter, with new-to-bank funding becoming more expensive.

• Broker deposits are used tactically to match fund Mortgage Warehouse lending, which has short duration and low operational risk.

• Confident in managing deposit costs, with flexibility to adjust pricing as rates move.