First Horizon (FHN) investor relations material

Executive summary

• Net income available to common shareholders rose 21% year-over-year to $257 million ($0.53 per share), with adjusted ROTCE at 15.1% for the third consecutive quarter and tangible book value per share up 9% year-over-year.

• Adjusted pre-provision net revenue increased 8% year-over-year to $360 million, with adjusted EPS up $0.11 year-over-year.

• Return on average assets reached 1.30%, up 19 bps year-over-year.

• Maintained disciplined pricing, relationship banking, and a diversified business model to navigate evolving market conditions.

• Noninterest income increased $14 million (8%) year-over-year, led by higher fixed income and service fee revenues.

Financial highlights

• Net interest income (FTE) was $670 million, up $36 million (6%) year-over-year, with net interest margin improving to 3.52%.

• Adjusted expenses (excluding deferred comp) decreased $32 million from prior quarter; efficiency ratio improved to 58.54%.

• Fee income increased $13 million year-over-year, though down sequentially.

• Net charge-offs were $29 million, with a net charge-off ratio of 0.18%.

• Loans and leases grew $221 million sequentially to $64.4 billion; deposits declined $994 million to $66.5 billion.

Outlook and guidance

• Full-year outlook maintained, 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.

• Management continues to monitor economic and regulatory developments, including interest rate trends and deposit competition.

• CET1 ratio expected to remain above well-capitalized standards plus required buffers.