First Horizon Corporation · NYSE:FHN
First Horizon — First Horizon National — Q1 2018 Earnings Presentation
19 slides from First Horizon's earnings presentation, Apr 13, 2018
Slide 1: First Horizon National Corporation First Quarter 2018 Earnings
First Horizon National Corporation First Quarter 2018 Earnings April 13, 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: First Quarter 2018 Highlights
3 All comparisons are 1Q18 vs 1Q17. 1Adjusted EPS, Adjusted ROA, ROTCE and Adjusted ROTCE are Non-GAAP numbers and are reconciled in the appendix. Adjusted numbers exclude notable items as outlined in the appendix. First Quarter 2018 Highlights Achieving Bonefish Targets, On Track with Capital Bank
Slide 4: Financial Results
FINANCIAL RESULTS 4
Slide 5: Financial Results
5 Financial Results NM - Not Meaningful. Numbers may not add to total due to rounding. 1Adjusted Fee Income, Revenue, Expense, Pre-Tax Income, NIAC, and EPS are Non-GAAP numbers and are reconciled in the appendix. Adjusted numbers exclude notable items as outlined in the appendix. EPS and Adjusted E
Slide 6: Capital Bank Merger Update
Capital Bank Merger Update Increasing Confidence in Merger Success 6 Systems conversion in 2Q18 Half of $85mm in annual cost savings expected in 2018 Annualized revenue synergies of ~$5mm $2mm annualized closed $3mm annualized in process 2018 Focus: Integration and Improved Accretion Merge
Slide 7: Net Interest Income and Net Interest Margin
7 Net Interest Income Sensitivity Impact Net Interest Income and Net Interest Margin Strong NII Growth and Margin Expansion NII and NIM increases driven by: Impact of full quarter of CBF loans Accretion from CBF loans Increase in short term interest rates NIM Expansion and Loan Growth Drive
Slide 8: Loan Growth Diversified Across Multiple Businesses
Energy, 1% Correspondent, 2% Healthcare, 4% Franchise Finance, 4% Corporate, 6% Loans to Mortgage Companies, 8% Asset-Based Lending, 11% Commercial Real Estate, 16% Business Banking, 5% Commercial, 43% $21.1B $25.7B +$47mm +$64mm +$58mm +$42mm -$39mm +$60mm -$339mm -$44mm +$12mm +$20mm +$60mm +$494m
Slide 9: Strong Deposit Franchise
9 LQ – Linked Quarter. YOY - Year over Year. Numbers/Percentages may not add to total due to rounding. 1Deposit beta equals change in average interest rate paid divided by change in average Fed funds rate. Strong Deposit Franchise Focused on Opportunities for Growth and Mix Improvement Total Average
Slide 10: Asset Quality
-0.10% 0.00% 0.10% 0.20% 0.30% 0.40% -$3 $0 $3 $6 $9 $12 1Q17 2Q17 3Q17 4Q17 1Q18 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 Allowan
Slide 11: Achieving Strategic Priorities
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. 3CET1, NIM, and NCO% are reported (GAAP) numbers, and have not been adjusted for the notable items outlined in the appendix. Adjusted ROTCE, ROA,
Slide 12: Building the Foundation for Sustainable Long-Term Earnings Power
12 Building the Foundation for Sustainable Long-Term Earnings Power Continue strong business momentum Grow balance sheet profitably and prudently Expand banking relationships with emphasis on economic profit Ensure successful merger integration Consistently deliver top quartile returns Suc
Slide 13: Appendix
APPENDIX 13
Slide 14: Notable Items
14 NOTABLE ITEMS 1All notable item amounts are calculated on a pre-tax basis with the exception of the tax adjustments in 2Q17, 3Q17, and 4Q17. 2017 Pre-Tax Amount1 2018 Pre-Tax Amount1 Acquisition Expense ($31.4mm) Gain on property sale $3.3mm Mortgage Repurchase Reserve Release $20.0mm Acquisition
Slide 15: 1Q18 Credit Quality Summary by Portfolio
15 1Q18 Credit Quality Summary by Portfolio Numbers may not add to total due to rounding. Data as of 1Q18. NM - Not meaningful. 1Credit card, Permanent Mortgage, and Other. 2Credit card, OTC, and Other Consumer. 3Non-performing loan excludes held-for-sale loans. 4Net charge-offs are annualized. 5Exe
Slide 16: Select C&I and CRE Portfolio Metrics
16 Select C&I and CRE Portfolio Metrics Data as of 1Q18. Numbers may not add to total due to rounding. C&I: Loans to Mortgage Companies CRE: Collateral Type CRE: Geographic Distribution Office 15% Other 20% ($ in billions) Retail 20% Other 15% 1Q18 Average Regional Bank Commercial Loans Office 21% L
Slide 17: Consumer Portfolio & Non-Strategic Overview
17 Non-Strategic Consumer Real Estate Run-Off Mortgage Repurchase Reserve Consumer Portfolio & Non-Strategic Overview Numbers may not add to total due to rounding. 38.2% 37.1% 35.0% 35.6% 34.9% 34% 35% 36% 37% 38% 39% $0.0B $0.2B $0.4B $0.6B $0.8B $1.0B 1Q17 2Q17 3Q17 4Q17 1Q18 Period End Balance Co
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, and adjusted earnings per share. That information is not presented accor
Slide 19: Reconciliation to GAAP Financials
Reconciliation to GAAP Financials 19 Slides in this presentation use non-GAAP information of adjusted fee ratio, adjusted efficiency ratio, return on tangible common equity, adjusted return on tangible common equity, and adjusted return on average assets. That information is not presented according
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