First Horizon Corporation · NYSE:FHN
First Horizon — First Horizon National — Q4 2017 Earnings Presentation
19 slides from First Horizon's earnings presentation, Jan 19, 2018
Slide 1: First Horizon National Corporation Fourth Quarter 2017 Earnings
First Horizon National Corporation Fourth Quarter 2017 Earnings January 19, 2018
Slide 2: Portions of this presentation use non-GAAP financial information. Each of those portions is
2 Portions of this presentation use non-GAAP financial information. Each of those portions is so noted, and a reconciliation of that non-GAAP information to comparable GAAP information is provided in a footnote or in the appendix at the end of this presentation. This presentation contains forwar
Slide 3: 2017 Highlights: Strong Fundamentals, Merger Closed and Well Positioned for 2018
3 All comparisons are FY 2016 Reported vs FY 2017 Adjusted. Comparisons to FY 2016 adjusted are not meaningful. 1 Adjusted EPS, Adjusted ROA, ROTCE and Adjusted ROTCE are Non-GAAP numbers and are reconciled in the appendix. Adjusted numbers exclude notable items as outlined on slide 14. 2017 Highlig
Slide 4: Tax Cuts and Jobs Act Impact
Effective tax rate for 2018 estimated at 23% Down 900bps from 3Q17 32% normalized rate Reinvestment action options Special bonuses for 70%+ of employees Charitable contribution to Foundation Others under review Increased capital return opportunities Tax Cuts and Jobs Act Impact Lower E
Slide 5: Financial Results
FINANCIAL RESULTS 5
Slide 6: Financial Results
6 Financial Results NM - Not Meaningful. Numbers may not add to total due to rounding. 1Adjusted Fee Income, Total Revenue, Expense, Pre-Tax Income, NIAC, and EPS are Non-GAAP numbers and are reconciled in the appendix. Comparisons to FY 2016 adjusted are not meaningful. Adjusted numbers exclude not
Slide 7: Capital Bank Merger Closed on November 30, 2017
Capital Bank Merger Closed on November 30, 2017 Increased Confidence in Merger Success 1 NII includes ~$5mm of scheduled and prepayment accretion. 7 Accelerated Bonefish Target Achievement Higher Cost Savings ($85mm vs $65mm) Revenue Synergies Being Executed Higher Interest Rates Lower Taxes Deal Ec
Slide 8: Strong NII Growth and Margin Expansion
$196 $190 $201 $210 $242 2.70% 2.80% 2.90% 3.00% 3.10% 3.20% 3.30% $140 $160 $180 $200 $220 $240 $260 4Q16 1Q17 2Q17 3Q17 4Q17 NII (left axis) NIM (right axis) 8 Net Interest Income Sensitivity Impact1 Net Interest Income and Net Interest Margin Strong NII Growth and Margin Expansion NII and NIM i
Slide 9: Loan Growth Diversified Across Multiple Businesses
9 Loan Growth Diversified Across Multiple Businesses CBF Merger Enhances Regional Banking Loan Portfolio Regional Banking 4Q17 Average Loan Growth by Lending Area LQ – Linked Quarter. YOY - Year over Year. Numbers may not add to total due to rounding. 1Period-end loan growth attributable to CBF is r
Slide 10: Asset Quality: Stable Credit Trends
-0.20% 0.00% 0.20% 0.40% 0.60% -$5 $0 $5 $10 $15 4Q16 1Q17 2Q17 3Q17 4Q17 NCOs $ Provision $ NCO %¹ (Right Axis) 10 Allowance for Loan Losses Net Charge-Offs (NCOs) Asset Quality Stable Credit Trends Reflect Strong Underwriting Discipline Credit quality environment remains stable Allowance to lo
Slide 11: Targeting Bonefish Levels by 2019
11 1 ROTCE, ROA, NIM, and NCO / Average Loans are annualized. ROTCE is a Non-GAAP number and reconciled in the appendix. 2 Current period is an estimate; estimate does not include the favorable impact of reclassification from AOCI to retained earnings of ~$58mm in connection with tax law change per
Slide 12: Successfully Executing on Key Priorities
12 Building the Foundation for Attractive Long-Term Earnings Power Continue strong business momentum Grow balance sheet profitably and prudently Expand banking relationships with emphasis on economic profit Deliver successfully on merger integration activities Strive for achievement of Bon
Slide 13: Appendix
APPENDIX 13
Slide 14: Notable Items
2016 Pre-Tax Amount 2017 Pre/After Tax Amount1 1Q Branch Impairment ($3.7mm) None Mortgage Repurchase Reserve Release $31.4mm Mortgage Repurchase Reserve Release $20.0mm Valuation Adjustment for Derivatives Related to Prior Sales of Visa Class B Shares ($2.5mm) Acquisition Expense ($6.4mm) Litigatio
Slide 15: 4Q17 Credit Quality Summary by Portfolio
15 4Q17 Credit Quality Summary by Portfolio Numbers may not add to total due to rounding. Data as of 4Q17. NM - Not meaningful. 1Credit card, Permanent Mortgage, and Other. 2Credit card, OTC, and Other Consumer. 3Non-performing loan % excludes held-for-sale loans. 4Net charge-offs are annualized. 5E
Slide 16: Solid Core Deposit Base Provides Funding Advantage
16 LQ – Linked Quarter. YOY - Year over Year. Numbers/Percentages may not add to total due to rounding 1 Deposit beta equals change in average interest rate paid divided by change in average Fed funds rate. Solid Core Deposit Base Provides Funding Advantage Asset Sensitivity Remains Intact Total a
Slide 17: Select C&I and CRE Portfolio Metrics
17 Select C&I and CRE Portfolio Metrics Data as of 4Q17. Numbers may not add to total due to rounding. C&I: Loans to Mortgage Companies CRE: Collateral Type CRE: Geographic Distribution Office 15% Other 20% ($ in billions) Industrial 11% Retail 20% Hospitality 10% Land 1% Multi-Family 24% NC 31% TN
Slide 18: Reconciliation to GAAP Financials
Reconciliation to GAAP Financials 18 Slides in this presentation use non-GAAP information of adjusted fee income, adjusted revenue, adjusted noninterest expense, adjusted pre-tax income, adjusted net income available to common, adjusted earnings per share, adjusted fee ratio, and adjusted efficiency
Slide 19: Reconciliation to GAAP Financials
Reconciliation to GAAP Financials 19 Slides in this presentation use non-GAAP information of return on tangible common equity, adjusted return on tangible common equity, and adjusted return on average assets. That information is not presented according to generally accepted accounting principles (GA
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