Slide 1: Second Quarter 2025 Earnings
Second Quarter 2025 Earnings July 16, 2025
Slide 2: Disclaimers
2 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 entit
Slide 3: 2Q25 reported financial summary
3PPNR, TBVPS, and ROTCE are non-GAAP and are reconciled to GAAP measures in the Appendix. $ in millions except per share data Reported Results 2Q25 Change vs. 2Q25 1Q25 4Q24 3Q24 2Q24 1Q25 2Q24 Net interest income $641 $631 $630 $627 $629 $10 2% $12 2% Fee income 189 181 99 200 186 7 4% 3 1% Total r
Slide 4: Table of contents
4 2Q25 highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2Q25 adjusted financial results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slide 5: 2Q25 highlights
5Reflects 2Q25 vs. 1Q25 results. PPNR, ROTCE, TBVPS, ACL to loans ratio, fully taxable equivalents, and adjusted financial measures, including measures excluding deferred compensation, are non-GAAP and are reconciled to GAAP measures in the Appendix. Net interest income and margin are adjusted to a
Slide 6: 2Q25 adjusted financial results
6PPNR, ROTCE, TBVPS, ACL to loans ratio, fully taxable equivalents, and adjusted financial measures, including measures excluding deferred compensation, are non-GAAP and are reconciled to GAAP measures in the Appendix. Net interest income and margin are adjusted to a fully taxable equivalent (“FTE”)
Slide 7: 2Q25 notable items
7 2Q25 notable items Notable Items ($ in millions, except per share data) 2Q25 FDIC special assessment (other noninterest expense) $1 Deferred compensation $4 Pre-tax impact of notable items $4 Tax impact on pre-tax notable items ($1) NIAC impact of notable items $3 EPS impact of notable items $— Pr
Slide 8: Loan portfolio growth drove NII increase
8 • Net interest income increased $10 million while net interest margin decreased 2bps versus 1Q25 ◦ Average interest bearing deposit costs increased by 4bps due to a slight increase in the rate paid on client deposits and higher brokered deposit balances, driven by competitive environment and loan
Slide 9: Deposit balance growth supported loan portfolio increases
9 Period end deposits $64.8B $66.6B $65.6B $64.2B $65.6B $16.3 $16.2 $16.0 $15.8 $15.9 $18.0 $16.3 $16.0 $16.2 $14.7 $20.3 $22.3 $21.5 $20.9 $22.1 $8.0 $9.2 $10.7 $10.5 $10.5 $2.1 $2.5 $1.4 $0.8 $2.4 Noninterest bearing deposits Base rate deposits Promotional deposits & CDs Indexed deposits Brokered
Slide 10: Diversified loan portfolio with seasonal tailwinds
10 Period end loans • 2Q25 period end loans of $63.3 billion, up 2% versus 1Q25 ◦ Loans to mortgage companies (LMC) increased $689 million reflecting seasonal trends and successful market share gains in recent quarters ◦ C&I excluding LMC grew $316 million ◦ CRE balances declined $203 million as ant
Slide 11: Fee income stable despite fixed income headwinds
11 • 2Q25 adjusted fee income excluding deferred compensation decreased $3 million from 1Q25 ◦ Fixed income declined by $7 million with average daily revenue down 6% as a result of less favorable market conditions, and decreased revenues associated with products not included in ADR ◦ Mortgage bankin
Slide 12: Disciplined expense management continues delivering results
12 Disciplined expense management continues delivering results • 2Q25 adjusted expense excluding deferred compensation increased $4 million versus 1Q25 ◦ Personnel expense excluding deferred compensation decreased $3 million ▪ Salaries and benefits increased $5 million, primarily due to higher day c
Slide 13: Strong credit performance reflects underwriting standards
13 Non-performing loans (NPLs)Allowance for credit losses (ACL) Net charge-offs FHN NCO%1 Average NCO% of BKX Index2 $34 $24 $13 $29 $34 0.22% 0.15% 0.08% 0.19% 0.22% 0.57% 0.57% 0.62% 0.57% 2Q24 3Q24 4Q24 1Q25 2Q25 FHN NCOs Strong credit performance reflects underwriting standards ACL/ loans ratio
Slide 14: Maintained target near term capital levels
14 10.9% 0.33% (0.11)% (0.01)% (0.13)% (0.01)% 11.0% 1Q25 Actual NIAC Common Dividend Share Buybacks Change in Loan Balances & Unfunded Commitments Other¹ 2Q25 Estimate Capital Ratios Common Equity Tier 1 (CET1) Tangible Book Value per Share (TBVPS) 14.0% 14.2% 14.2% 14.1% 14.0% CET1 ratio Tier 1 ca
Slide 15: Earnings Drivers: FY25 vs FY24 expectations
15 Earnings Drivers FY24 Adjusted Baseline FY25 vs FY24 Expectations Comments Adjusted Revenue (excluding deferred comp) $3,279 million Flat - Up 4% Composition of revenue will be driven by the quantity and pace of interest rate cuts and other macroeconomic variables. Adjusted Expense (excluding def
Slide 16: Key steps to achieving intermediate term 15%+ ROTCE
16 Strategic capital management to opportunistically deploy excess capital and lower CET1 to 10% - 10.5% range Key steps to achieving intermediate term 15%+ ROTCE Highly attractive geographic footprint in growth markets with opportunities to drive loan and deposit growth Diversified business model w
Slide 17: Appendix
Appendix BS FIRST HORIZON.
Slide 18: Actively managing liquidity and interest rate sensitivity
18 Actively managing liquidity and interest rate sensitivity Variable 56% Fixed 31% ARMs 13% $63.3B Floors 60% Swaps 40% $5.0B Loan repricing profile Balance sheet hedges Modest interest rate sensitivity1 +100bps +2.0% -100bps -2.9% • Modestly asset-sensitive profile driven by 56% variable rate loan
Slide 19: Track record of strong results supported by diversified business mix
19 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, loan
Slide 20: FHN Financial's full-cycle returns are counter-cyclical to bank franchise
20 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 20 24 —% 2.00% 4.00% 6.00% $0.0 $0.5 $1.0 $1.5 $2.0 FHN Financial’s strong full-cycle returns are counter-cyclical to bank franchise Lower Revenue Market Factor Higher Revenue 2023 Environment 20
Slide 21: Industry & product diversification: total loan portfolio
21 Multi-family 65% Office 2% All other CRE 33% Land 2% Construction 10% Other CRE 3% Hospitality 9% Industrial 14% Retail 15% Office 19% Multi-Family 28% RE installment loans 82% HELOC 14% Credit card & other 4% Industry & product diversification: total loan portfolio Total loans $63.3B Consumer $1
Slide 22: Geographic diversification: commercial loan portfolio
22 Geographic diversification: commercial loan portfolio 27% TN 20% FL 13% TX 10% NC 7% LA 6% GA 4% SC 2% Other SE1 11% $34.4B 8% FL 28% TX 20% GA 14% NC 9% TN 7% LA 4% Other SE1 7% 7% NC 20% FL 16% TN 14% GA 13% TX 12% LA 8% SC 4% Other SE1 6% 15% FL 26% NC 14% LA 10% TN 9% TX 9% GA 6% SC 4% Other
Slide 23: Investment portfolio prudently managed to support liquidity and IRR
23 2Q25 investment portfolio composition2 Steady principal cash flows3 Investment portfolio $0.3B $0.3B $0.3B $0.2B 3Q25 4Q25 1Q26 2Q26 Agency MBS 41% Agency CMBS 28% Agency CMO 16% U.S. Agencies & Treasury 12% States & Municipalities 4% $9.3B $9.4B $9.3B $9.2B $9.3B 2.58% 2.58% 2.69% 3.02% 3.06% Av
Slide 24: Notable Items
24 Notable Items Numbers may not total due to rounding. * 4Q24, 3Q24, and 2Q24 include $3 million, $2 million, and $3 million of restructuring expenses; 1Q25 and 3Q24 include $5 million and $15 million of Visa derivative valuation expenses. ** 2Q24 includes $7 million deemed dividends on the redempt
Slide 25: Reconciliation to GAAP financials
25 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. (a) Included in total equity on the Consolidated Balance Sheet. (b) I
Slide 26: Reconciliation to GAAP financials
26 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 2Q25 1Q25
Slide 27: Reconciliation to GAAP financials
27 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 2Q25 1Q25 4Q24 3Q24 2Q24 Adjusted
Slide 28: Reconciliation to GAAP financials
28 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 2Q25 1Q25 2Q25 vs. 1Q25 2Q25 1Q25 2
Slide 29: Reconciliation to GAAP financials
29 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. (a) Adjusted for notable items as detailed on page 24. Numbers may no
Slide 30: Reconciliation to GAAP financials
30 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. (a) Adjusted for notable items as detailed on page 24. Numbers may no