First Horizon Corporation · NYSE:FHN
First Horizon — Q4 2025 Earnings Presentation
30 slides from First Horizon's earnings presentation, Jan 15, 2026
Slide 1: Fourth Quarter 2025 Earnings
Fourth Quarter 2025 Earnings January 15, 2026
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: 4Q25 and 2025 reported financial summary
4Q25 and 2025 reported financial summary Reported Reported Results 4Q25 Change vs. 2025 change vs. $ in millions except per share data Results 2024 4Q25 3Q25 2Q25 1Q25 4Q24 3Q25 4Q24 2025 2024 Net interest income $676 $674 $641 $631 $630 $2 —% $46 7% $2,622 $2,511 $112 4% Fee income 212 215 189 181
Slide 4: Table of Contents
Table of Contents 2025 full year review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 4Q25 adjusted financial results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slide 5: Execution in 2025 delivered outstanding returns for the full year and fourth quarter
Execution in 2025 delivered outstanding returns for the full year and fourth quarter 2025 financial highlights Progressing towards sustained 15%+ ROTCE n Adjusted ROTCE Change iEarnings: 2025 n Adjusted EPS $1.89 vs. 2024 +22% 4Q25 15.0% 2H25 15.0% FY25 14.2% Adjusted PPNR $1.37 billion +6% NIM 3.47
Slide 6: Sustained strong performance in adjusted 4Q25 results
Sustained strong performance in adjusted 4Q25 results $ in millions, Adjusted Results 4Q25 Change vs. Quarterly Highlights except per share data 4Q25 3Q25 4Q24 3Q25 4Q24 Adjusted PE Loan $0.52 NIM 3.51% Net interest income (FTE) $679 $678 $634 $2 —% $46 7% EPS Growth +2% Fee income $212 $215 $190 ($
Slide 7: 4Q25 notable items
4Q25 notable items Notable Items 4Q25 Pre-Tax Notable Items ($ in millions, except per share data) FDIC special assessment (other noninterest expense) $7 • Expense credit of $7 million associated with an FDIC special assessment Visa Derivative Valuation Expense (other noninterest expense) ($10) • $1
Slide 8: NII improvement driven by deposit pricing and LMC growth
NII improvement driven by deposit pricing and LMC growth Net interest income ($) and NIM (%) $ in millions NII Margin 3Q25 $678 3.55% $678 $679 3Q MSLP Accretion Impact ($12) (0.06%) Loan Portfolio ex. MSLP ($22) (0.15%) $645 $634 $634 3.55% 3.51% Deposit Rate Paid $32 0.17% 3.42% 3.40% Other $4 —%
Slide 9: Deposit growth with continued strong retention
Deposit growth with continued strong retention Period end deposits $67.5B • 4Q25 period end deposits of $67.5 billion $65.6B $64.2B $65.6B $65.5B $2.2 $1.4 $0.8 $2.4 $1.8 ◦ Increase of $2.0 billion versus 3Q25 driven by indexed deposit $10.7 growth of $2.2 billion reflecting balance growth and clien
Slide 10: Loan portfolio growth reflects continued C&I strength
Loan portfolio growth reflects continued C&I strength Period end loans $62.6B $63.3B $63.1B $64.2B • 4Q25 period end loans of $64.2 billion, up 2% versus 3Q25 $62.2B $3.5B $3.4B $4.1B $3.9B $4.7B ◦ Loans to mortgage companies (LMC) increased $776 million from market share growth and slightly $14.0B
Slide 11: Fee income held trends from prior quarter
Fee income held trends from prior quarter Adjusted Results 4Q25 Change vs. $ in millions 4Q25 3Q25 2Q25 1Q25 4Q24 3Q25 4Q24 Fixed income $57 $57 $42 $49 $49 $0 —% $8 16% Mortgage banking $10 $15 $10 $8 $8 ($5) (34%) $3 34% Service charges and fees $64 $57 $55 $52 $53 $7 11% $11 22% Brokerage, trust,
Slide 12: Expenses reflect strong revenue growth in 2025
Expenses reflect strong revenue growth in 2025 Adjusted Results 4Q25 Change vs. $ in millions 4Q25 3Q25 2Q25 1Q25 4Q24 3Q25 4Q24 Salaries and benefits $213 $209 $206 $201 $199 $4 2% $14 7% Incentives and commissions $87 $79 $73 $81 $73 $8 10% $14 19% Deferred compensation expense $3 $8 $7 $(3) $1 ($
Slide 13: Strong credit performance with balance sheet growth
Strong credit performance with balance sheet growth Net charge-offs • 4Q25 net charge-offs of $30 million $34 ◦ NCO ratio of 0.19%, up 2bps from 3Q25 $29 $30 0.62% $26 ◦ Results include $16 million of recoveries 0.57% 0.53% • Zero provision for credit losses in 4Q25 $13 0.58% ◦ 4Q25 ACL to loans rat
Slide 14: Capital in line with near term targets through growth and buybacks
Capital in line with near term targets through growth and buybacks Capital Ratios • CET1 ratio decreased to 10.64% 14.2% 14.1% 14.0% 13.8% ◦ Share buybacks opportunistically increased to $335 million at $21.32 per 13.4% share3, supported by strong NIAC growth ◦ $1 billion of authorization remaining
Slide 15: 2026 outlook
2026 outlook Core Objectives Key Metrics 2025 2026 1 Pre-provision net revenue growth Adjusted Revenue Baseline $3.42 billion Expectations 3 - 7% Comments Revenue range reflects outcomes from various rate ex. deferred comp. environments Flat guidance excludes bonuses/ Adjusted Expenses 2 ex. deferre
Slide 16: 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 17: Appendix
Appendix
Slide 18: Actively managing liquidity and interest rate sensitivity
Actively managing liquidity and interest rate sensitivity 66% of deposits insured or collateralized Balance sheet hedges Modest interest rate sensitivity1 +100bps -100bps +1.6% -2.3% Insured 58% change in the next 12 months’ NII for an instantaneous, Swaps parallel shock on a static balance sheet 40
Slide 19: 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 20: 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 21: Industry & product diversification: total loan portfolio
Industry & product diversification: total loan portfolio Total loan portfolio C&I by industry CRE by property type Mortgage Warehouse Finance & Multi-Family C&I Other 14 13% Insurance 28% Office 56% Industries 12% Land 4% Energy 24% 2% All Office Total 3% C&I Real 20% other loans Transportation CRE
Slide 22: Geographic diversification: commercial loan portfolio
Geographic diversification: commercial loan portfolio $49.5B commercial loan portfolio C&I with 75% in attractive southeastern footprint Total Other TN FL TX NC LA GA SC SE1 29% $35.9B C&I 20% 12% 10% 6% 6% 5% 2% 10% C&I exposure to markets outside the southeast primarily driven by specialty busines
Slide 23: Investment portfolio prudently managed to support liquidity and IRR
Investment portfolio prudently managed to support liquidity and IRR Investment portfolio • 4Q25 investment portfolio represents ~11% of total assets $9.3B $9.2B $9.3B $9.3B $9.3B ◦ Moderate total portfolio effective duration of 3.9 years ◦ Low reliance on the HTM designation at ~13% of total portfol
Slide 24: Notable items
Notable items $ in millions, except EPS 4Q25 3Q25 2Q25 1Q25 4Q24 2025 2024 Summary of Notable Items: Loss on AFS portfolio restructuring $— $— $— $— $(91) $— $(91) Deferred compensation adjustment $— $— $4 $— $— $4 $— FDIC special assessment (other noninterest expense) $7 $2 $1 $(1) $1 $9 $(9) Other
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 Annual, Unaud
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, except per share data Quarterly, Unaudited Annual, Unaud
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 Quarterly, Unaudited Annual, Unaudited 4Q25 3Q25 2Q25 1Q2
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 Period end Average 4Q25 3Q25 4Q25 vs. 3Q25 4Q25 3Q25 4Q25
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 Annual, Unaudited 4Q25 3Q25 2Q25 1Q2
Slide 30: 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 Annual, Unaudited 4Q25 3Q25 2Q25 1Q2