First Horizon Corporation · NYSE:FHN
First Horizon — Goldman Sachs 2023 US Financial Services Conference
10 slides from First Horizon's conference presentation, Dec 5, 2023
Slide 1: Goldman Sachs 2023 US Financial Services Conference
Goldman Sachs 2023 US Financial Services Conference Chairman, President, and Chief Executive Officer - Bryan Jordan
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. FHN’s management belie
Slide 3: Targeting Top Quartile Returns Through the Cycle
Targeting Top Quartile Returns Through the Cycle Well-positioned to capitalize on our strong balance sheet and attractive markets Focused on driving enhanced shareholder value 11.1% 13.6% Capital CET1 ratio Total Capital ratio 90% 9+ years associate retention average tenure Counsel over the last yea
Slide 4: Ability to Generate Pre-Provision Net Revenue Growth in 2024
Ability to Generate Pre-Provision Net Revenue Growth in 2024 Proven track record of navigating various macroeconomic environments NII1 Fees + 1 - 4% + 4 – 6% • Asset sensitive balance sheet is well- • Moderate growth in traditional positioned for “higher-for-longer” banking fees driven by balance sh
Slide 5: NII Benefits from Balance Sheet Growth and Repricing
NII Benefits from Balance Sheet Growth and Repricing Repricing opportunities on assets and liabilities support ability to expand margin Margin Tailwinds • Over the next twelve months, over $5 billion of fixed rate cash flows reprice: Fixed Rate o ~$4B of fixed rate loan cash flows with a weighted av
Slide 6: Continued Focus on Operational Efficiency and Customer Experience
Continued Focus on Operational Efficiency and Customer Experience Strategic investments to occur over the next three years Personnel + Wage inflation + Counter-cyclical commissions + TD retention Strategic Investments + Technology personnel hiring +4-6% – Contractor reduction + Customer-facing impro
Slide 7: Proven Ability to Deliver through the Cycle with Diversified Portfolio
Proven Ability to Deliver through the Cycle with Diversified Portfolio Low net charge-offs over time with 97% of the portfolio currently pass-rated 0.61% 0.44% 0.40% 0.40% 0.39% 0.37% 0.35% 0.30% C&I 0.20% 0.21% 54% CRE PE Loans $33.2B 0.26% 0.16% 0.15% 23% $61.8B 0.09% 0.11% 0.11% $14.1B 0.06% 0.06
Slide 8: Capitalizing on Our Ability to Deploy Capital Profitability
Capitalizing on Our Ability to Deploy Capital Profitability Committed to delivering top quartile returns through the cycle Focused on driving enhanced shareholder value • Ability to create near-term positive operating leverage • Adjusted ROTCE1 of 15%+ over the last twelve months Capital • +30% divi
Slide 9: Appendix
FIRST HORIZON. Appendix
Slide 10: Reconciliation to GAAP financials
Reconciliation to GAAP financials $ in millions Last 12 Quarterly, Unaudited 3Q23 2Q23 1Q23 4Q22 Months Return on Average Common Equity ("ROCE")/ Return on Average Tangible Common Equity ("ROTCE")/ Adjusted ROTCE Net income available to common shareholders ("NIAC") (GAAP) $129 $317 $243 $258 $948 Pl
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