First Horizon Corporation · NYSE:FHN
First Horizon — Q3 2025 Earnings Presentation
29 slides from First Horizon's earnings presentation, Oct 15, 2025
Slide 1: Third Quarter 2025 Earnings
Third Quarter 2025 Earnings October 15, 2025
Slide 2: Disclaimers
Disclaimers Non-GAAP Information Certain measures included in this document are “non-GAAP,” meaning they are not presented in accordance with generally accepted accounting principles in the U.S. and also are not codified in U.S. banking regulations currently applicable to FHN. Although other entitie
Slide 3: 3Q25 reported financial summary
3Q25 reported financial summary Reported Results 3Q25 Change vs. $ in millions except per share data 3Q25 2Q25 1Q25 4Q24 3Q24 2Q25 3Q24 Net interest income $674 $641 $631 $630 $627 $33 5% $47 7% Fee income 215 189 181 99 200 26 14% 15 7% Total revenue 889 830 812 729 828 60 7% 62 7% Expense 551 491
Slide 4: Table of Contents
Table of Contents 3Q25 adjusted financial results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3Q25 notable items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slide 5: 3Q25 adjusted financial highlights
3Q25 adjusted financial highlights $ in millions, Adjusted Results 3Q25 Change vs. except per share data 3Q25 2Q25 3Q24 2Q25 3Q24 • Adjusted EPS of $0.51, a $0.06 increase from 2Q25 Net interest income (FTE) $678 $645 $631 $33 5% $46 7% • Adjusted ROTCE of 15.0% increased 135bps from 2Q25 Fee income
Slide 6: 3Q25 notable items
3Q25 notable items Notable Items 3Q25 Pre-Tax Notable Items ($ in millions, except per share data) FDIC special assessment (other noninterest expense) $2 • $10 million tied to Visa derivative valuation expenses Visa Derivative Valuation Expense (other noninterest expense) ($10) • Expense credit of $
Slide 7: NII growth from advantageous portfolio composition
NII growth from advantageous portfolio composition Net interest income ($) and NIM (%) $ in millions NII Margin 2Q25 $645 3.40% $678 Days $4 MSLP Accretion $12 0.07% $645 $631 $634 $634 3.55% Loan Yields ex. MSLP $9 0.05% 3.42% 3.40% Total Customer Deposit Balances $2 —% 3.31% 3.33% Total Wholesale
Slide 8: Seasonal deposit fluctuations with continued strong retention
Seasonal deposit fluctuations with continued strong retention Period end deposits $66.6B $65.6B $65.6B $65.5B • 3Q25 period end deposits of $65.5 billion $64.2B $2.5 $1.4 $2.4 $1.8 $0.8 ◦ Decrease of $52 million versus 2Q25 driven by a $9.2 $10.7 $10.5 $11.4 $652 million decrease in brokered CDs off
Slide 9: Stable loan portfolio even with seasonal declines in LMC
Stable loan portfolio even with seasonal declines in LMC Period end loans $62.4B $62.6B $63.3B $63.1B • 3Q25 period end loans of $63.1 billion, down slightly versus $62.2B $3.2B $3.5B $3.4B $4.1B $3.9B 2Q25 ◦ Loans to mortgage companies (LMC) decreased $14.0B $14.0B $14.1B $14.4B $14.4B $132 million
Slide 10: Fee income growth driven by fixed income
Fee income growth driven by fixed income Adjusted Results 3Q25 Change vs. $ in millions 3Q25 2Q25 1Q25 4Q24 3Q24 2Q25 3Q24 Fixed income $57 $42 $49 $49 $47 $15 36% $11 23% Mortgage banking $15 $10 $8 $8 $9 $6 59% $6 70% Service charges and fees $57 $55 $52 $53 $59 $2 4% ($1) (2%) Brokerage, trust, a
Slide 11: Expense growth reflects revenue pickup
Expense growth reflects revenue pickup Adjusted Results 3Q25 Change vs. $ in millions 3Q25 2Q25 1Q25 4Q24 3Q24 2Q25 3Q24 Salaries and benefits $209 $206 $201 $199 $199 $3 1% $10 5% Incentives and commissions $79 $73 $81 $73 $76 $6 9% $3 4% Deferred compensation expense $8 $7 $(3) $1 $6 $1 22% $2 25%
Slide 12: Credit remains a centerpiece of performance
Credit remains a centerpiece of performance Net charge-offs • 3Q25 net charge-offs of $26 million in line with expectations $34 ◦ NCO ratio of 0.17%, down 5bps from 2Q25 $29 ◦ Results include $9 million of recoveries 0.62% $26 $24 • Provision credit of $5 million in 3Q25 0.57% $13 0.57% 0.53% ◦ 3Q25
Slide 13: Strong NIAC supported share buyback increases and TBVPS growth
Strong NIAC supported share buyback increases and TBVPS growth Capital Ratios • CET1 ratio remained 11.0% 14.2% 14.2% 14.1% 14.0% 13.8% ◦ Share buybacks increased to $190 million in line with NIAC growth and offsetting loan portfolio shrinkage ◦ Loan portfolio growth remains the priority for capital
Slide 14: Maintaining existing 2025 guidance
Maintaining existing 2025 guidance FY24 Adjusted FY25 vs FY24 Earnings Drivers Comments Baseline Expectations Adjusted Revenue $3,279 million Flat - Up 4% Revenue expectations remain in line with guidance to finish the year. (excluding deferred comp) Adjusted Expense No change to expense expectation
Slide 15: Keys to achieving a sustained intermediate term 15%+ adjusted ROTCE
Keys to achieving a sustained intermediate term 15%+ adjusted ROTCE Strategic capital management to opportunistically deploy excess capital and lower CET1 to 10% - 10.5% range Highly attractive geographic footprint in growth markets with opportunities to drive loan and deposit growth Diversified bus
Slide 16: Appendix
Appendix BX FIRST HORIZON.
Slide 17: Actively managing liquidity and interest rate sensitivity
Actively managing liquidity and interest rate sensitivity 65% of deposits insured or collateralized Balance sheet hedges Modest interest rate sensitivity1 +100bps -100bps Insured +2.0% 2.9% 58% change in the next 12 months’ NII for an instantaneous, Swaps parallel shock on a static balance sheet 40%
Slide 18: Track record of strong results supported by stable, diversified business mix
Track record of strong results supported by stable, diversified business mix • Our diversified business model with a highly attractive geographic footprint provides opportunity to deliver strong performance through a variety of economic cycles • The counter-cyclical businesses (fixed income, loans t
Slide 19: FHN Financial's strong full-cycle returns are counter-cyclical to bank franchise
FHN Financial’s strong full-cycle returns are counter-cyclical to bank franchise Fed Funds • FHN Financial provides fixed income sales & trading, investment advisory, Average ADR 6.00% in$2.0 interest rate derivatives and other services to financial institutions, FOMC easing millions municipalities
Slide 20: Industry & product diversification: total loan portfolio
Industry & product diversification: total loan portfolio Total loan portfolio C&I by industry Real Estate CRE by property type & Leasing 12% Mortgage Multi-Family C&I Warehouse 28% Other 14 11% Office 54% Industries Land 3% 24% 2% All Total C&I Office other Energy 19% CRE loans CRE 3% $34.4B Finance
Slide 21: Geographic diversification: commercial loan portfolio
Geographic diversification: commercial loan portfolio $48.1B commercial loan portfolio C&I with 77% in attractive southeastern footprint Total Other TN FL TX NC LA GA SC SE1 28% $34.4B C&I 20% 12% 11% 6% 6% 4% 2% 11% C&I exposure to markets outside the southeast primarily driven by specialty busines
Slide 22: Investment portfolio prudently managed to support liquidity and IRR
Investment portfolio prudently managed to support liquidity and IRR Investment portfolio • 3Q25 investment portfolio represents ~11% of total assets $9.4B $9.3B $9.2B $9.3B $9.3B ◦ Moderate total portfolio effective duration of 4.2 years ◦ Low reliance on the HTM designation at ~13% of total portfol
Slide 23: Notable items
Notable items $ in millions, except EPS 3Q25 2Q25 1Q25 4Q24 3Q24 Summary of Notable Items: Loss on AFS portfolio restructuring $— $— $— $(91) $— Deferred compensation adjustment $— $4 $— $— $— FDIC special assessment (other noninterest expense) $2 $1 $(1) $1 $2 Other notable expenses * $(10) $— $(5)
Slide 24: Reconciliation to GAAP financials
Reconciliation to GAAP financials Slides in this presentation use non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. $s in millions, except per share data Quarterly, Unaudited 3Q25 2Q25 1Q2
Slide 25: Reconciliation to GAAP financials
Reconciliation to GAAP financials Slides in this presentation use non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. $s in millions, except per share data Quarterly, Unaudited 3Q25 2Q25 1Q2
Slide 26: Reconciliation to GAAP financials
Reconciliation to GAAP financials Slides in this presentation use non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. $s in millions Quarterly, Unaudited 3Q25 2Q25 1Q25 4Q24 3Q24 Adjusted No
Slide 27: Reconciliation to GAAP financials
Reconciliation to GAAP financials Slides in this presentation use non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. $s in millions Period end Average 3Q25 2Q25 3Q25 vs. 2Q25 3Q25 2Q25 3Q25
Slide 28: Reconciliation to GAAP financials
Reconciliation to GAAP financials Slides in this presentation use non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. $s in millions Quarterly, Unaudited 3Q25 2Q25 1Q25 4Q24 3Q24 Adjusted no
Slide 29: Reconciliation to GAAP financials
Reconciliation to GAAP financials Slides in this presentation use non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. $s in millions Quarterly, Unaudited 3Q25 2Q25 1Q25 4Q24 3Q24 Adjusted Pr