First Horizon Corporation · NYSE:FHN
First Horizon — Investor Day (June 2023)
16 slides from First Horizon's investor day presentation, Jun 6, 2023
Slide 1: First Horizon Investor Day
PS = 20 Purpose driven (am) oF : = Client centered HORIZON Z Value focused —
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. Non-GAAP measures are
Slide 3: Specialty Banking
Specialty Banking Delivering Strong Risk-Adjusted Returns through Diversified, Well-Managed Businesses
Slide 4: Unique value proposition
Unique value proposition Diversification across eleven specialty verticals plus three dedicated countercyclical businesses provides unique value proposition • Deep industry experience creates value Specialty lending verticals for clients • Asset-Based Lending • International • Franchise Finance • Sy
Slide 5: Financial performance
Financial performance Pre-provision net revenue1 Period-end loans Period-end deposits ($s in millions) ($s in billions) ($s in billions) $706 $17.2 $16.3 $16.0 $16.3 $6.2 $647 $5.4 $4.5 $2.3 $2.1 $4.6 $425 $347 $429 $356 $3.7 $3.2 $119 $28 $11.8 $11.8 $13.7 $14.2 $281 $299 $309 $328 FY202 FY21 FY22
Slide 6: Specialty operational segmentation
Specialty operational segmentation Core lending verticals provide long-term accretive value to the bank, while countercyclical businesses provide greater upside opportunity in down cycles Period-end loans Revenue ($s in billions) ($s in millions) $17.2 $16.3 $16.0 $16.3 Countercyclical 31% 28% 14% 1
Slide 7: Core Specialty Lending
FIRST HORIZON. Core Specialty Lending INVESTOR DAY NON WO
Slide 8: Professional Commercial Real Estate
Professional Commercial Real Estate Provides development, acquisition, refinancing, and placement products and services to institutional grade real estate developers, funds, and REITs primarily in the Southern United States Professional Commercial Real Estate: Who we are Clients People Portfolio Ser
Slide 9: Asset-Based Lending
Asset-Based Lending Issues loans and lines of credit secured by receivables, inventory, finance contracts, and other similar assets to C&I and Specialty Finance companies to support their working capital needs Asset-Based Lending: Who we are Clients People Portfolio 170 C&I and specialty Relationshi
Slide 10: Franchise Finance
Franchise Finance Serves the new unit development, remodeling, acquisition, and refinancing needs of multi-unit restaurant and fitness owners Franchise Finance: Who we are Clients People Portfolio 92 leading multi-unit restaurant Dedicated team with an average of Diversified client base by brand, an
Slide 11: Specialty Countercyclical
FIRST HORIZON. Specialty Countercyclical INVESTOR DAY NON WO
Slide 12: Countercyclical businesses over time
Countercyclical businesses over time Complement the bank in various economic environments Countercyclical performance Mortgage Warehouse lending trends • Mortgage warehouse lending has continued to $201 $202 maintain strong market share through the down cycle $127 • Secondary mortgage sales have slo
Slide 13: Mortgage Warehouse Lending
Mortgage Warehouse Lending Provides lines of credit to independent residential mortgage banking companies to finance residential mortgage loans from closing to their eventual sale to the secondary market Mortgage Warehouse lending: Who we are Clients People Portfolio 272 independent residential Indu
Slide 14: FHN Financial
FHN Financial Provides fixed income sales & trading, investment advisory, interest rate derivatives and other services to financial institutions, municipalities and other institutional investors across the United States and internationally FHN Financial: Who we are Clients People Portfolio 4,300 act
Slide 15: Deposit growth upside strategy
Deposit growth upside strategy In addition to growing through acquiring business operating accounts with new and current clients in our lines of business, we also have targeted strategies for growing the deposit base Mortgage • Seek new escrow deposits from current clients Warehouse • Recapture laps
Slide 16: Why specialty?
Why specialty? Diversification across eleven specialty verticals plus three dedicated countercyclical businesses provides unique value proposition ✓ Deep industry experience adds value for clients ✓ Fewer, more focused competitors ✓ Nationwide footprint enables selectivity ✓ Strong credit profile ✓