First Horizon Corporation · NYSE:FHN
First Horizon — First Horizon National — Q3 2015 Earnings Presentation
25 slides from First Horizon's earnings presentation, Oct 16, 2015
Slide 1: FHN Performance Highlights: Summary of Third Quarter 2015 Notable Items
FHN PERFORMANCE HIGHLIGHTS Summary of Third Quarter 2015 Notable Items Segment Item Income Statement Amount Comments · Various, primarily Regional Bank Employee benefit plan amendment Employee compensation, incentives, and benefits $8.3 million Pre-tax gains related to an amendment of certain employ
Slide 2: First Horizon National Corporation Third Quarter 2015 Earnings
First Horizon National Corporation Third Quarter 2015 Earnings October 16, 2015
Slide 3: ▪ Portions of this presentation use non - GAAP financial information. Each of those
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 fo
Slide 4: Building Franchise Value: Executing "Blue Chip" Priorities
Building Franchise Value Executing “Blue Chip” Priorities ▪ Being easy to do business with ▪ Providing differentiated customer service ▪ Using the Bonefish to drive profitability 3
Slide 5: Third Quarter 2015 Accomplishments
4 All data comparisons are year over year. Numbers may not add to total due to rounding. 1 Source: FDIC. Data as of 6.30.15. 2 Refer to the financial supplement for further variance trend analysis. Third Quarter 2015 Accomplishments 3Q14 - 3Q15 Regional Bank Loan Growth 3Q15 Average Regional Bank Co
Slide 6: Financial Results
FINANCIAL RESULTS Fa First HORIZON NATIONALCORPORATION
Slide 7: 3Q15 Consolidated Financial Results
3Q15 Consolidated Financial Results 6 Net Interest Income Fee Income Expense $ in millions Financial Results 3Q15 $164 Loan Loss Provision $125 $204 $1 $67 3Q15 vs +3% - 21% - 16% - 83% +46% 2Q15 $167 $130 $218 $2 $51 3Q14 $160 $158 $244 $6 $46 2Q15 - 2% - 4% - 7% - 50% +33% 3Q14 Actuals ▪ Net inter
Slide 8: 3Q15 Segment Highlights
3Q15 Segment Highlights 7 Drivers and Impacts Net Income 1 $ in millions, except EPS 3Q15 Per Share Impact 2 Regional Banking Fixed Income Corporate 1 Non - Strategic Total 1 2Q15 $46 $6 $(16) $15 $51 3Q14 $51 $3 $(14) $6 $46 3Q15 $55 $4 $0 $8 $67 $0.23 $0.02 $0.00 $0.04 $0.29 ▪ Fixed income product
Slide 9: Regional Banking Financial Results
Regional Banking Financial Results Solid Year over Year Balance Sheet and NII Growth 8 Net Interest Income Fee Income Expense $ in millions Financial Results 3Q15 $165 Loan Loss Provision $63 $136 $7 3Q15 vs +7% - 2% * NM 2Q15 $166 $66 $144 $17 3Q14 $154 $64 $136 $2 2Q15 * - 5% - 6% - 61% 3Q14 Actua
Slide 10: Profitable Growth Opportunities: Regional Banking
$3.39B $3.42B $3.20B $0.75B $0.76B $0.77B $2.02B $1.95B $1.82B $1.39B $1.31B $1.18B $2.02B $2.05B $2.13B $1.53B $1.47B $1.30B $1.58B $1.53B $1.37B $1.41B $1.61B $0.95B 3Q15 2Q15 3Q14 $0 $3 $6 $9 $12 $15 9 Profitable Growth Opportunities: Regional Banking Regional Banking Average Loans by Lending Are
Slide 11: Fixed Income - FTN Financial Results
10 $0 $1 $2 $3 $0 $250 $500 $750 2008 2009 2010 2011¹ 2012 2013 2014¹ 2015² Revenue Expense Column1 ADR Fixed Income - FTN Financial Financial Results $750mm Fixed Income Revenue and Expense Numbers may not add to total due to rounding. 1 2011 and 2014 exclude ~$37mm of expense associated with a leg
Slide 12: Net Interest Income Sensitivity Impact and Net Interest Margin
11 Net Interest Income Sensitivity Impact 1 Consolidated Net Interest Income and Net Interest Margin Balance Sheet Positioned to Benefit from Rising Rates +2.4% $16mm +3.7% +$25mm +6.3% +$42mm +11.5% +$77mm 0% 3% 6% 9% 12% +25bps +50bps +100bps +200bps ▪ NIM at 2.85% ▪ NII up $4mm or 3% year over ye
Slide 13: Asset Quality Trends
12 Non - Performing Assets $0 $100 $200 $300 3Q14 4Q14 1Q15 2Q15 3Q15 NPLs NPLs Held for Sale ORE $300mm Net Charge - Offs Asset Quality Trends Stable to Improving Credit Trends Reserves 1.00% 1.25% 1.50% 1.75% 3Q14 4Q14 1Q15 2Q15 3Q15 Reserves / Loans % 0.00% 0.13% 0.25% 0.38% 0.50% $0 $5 $10 $15 3
Slide 14: Building Long-Term Earnings Power: Bonefish Targets
13 3Q15 Consolidated Long - Term Targets ROTCE 1 13.4% 15.0 – 20.0% ROA 1 1.12% 1.25 – 1.45% CET1 2 10.8% 8.0 – 9.0% NIM 1 2.85% 3.50 – 4.00% NCO / Average Loans 1 0.28% 0.30 - 0.70% Fee Income / Revenue 43% 40 - 50% Efficiency Ratio 71% 60 - 65% 1 ROTCE, ROA, NIM, and NCO / Average Loans are annual
Slide 15: Building Blocks Provide Path to Bonefish Targets
14 Building Blocks Provide Path to Bonefish Targets Building a Foundation for Long - Term Earnings Power Current ROTCE Rise in Interest Rates 1 Target Bonefish ROTCE Growth Opportunities Economic Profit Improvement Optimize/ Redeploy Capital Continued Efficiencies ▪ Non - Strategic W ind - Down ▪ In
Slide 16: Building a Foundation for Attractive Long-Term Earnings Power
15 Building a Foundation for Attractive Long - Term Earnings Power ▪ Proven execution capabilities ▪ Unique size, scope, and strengths ▪ Focused on efficiency, productivity, economic profitability, and growth opportunities ▪ Organizational alignment on the path to achieving long - term bonefish prof
Slide 17: Appendix
APPENDIX IRST HORIZON {TIONAL CORPORATION
Slide 18: Notable Items Impact to EPS
Notable Items 17 Impact to EPS 2 After - Tax Amount 1 Notable Item Pre - Tax Amount Employee Benefit Plan Amendment $6.0mm $0.03 $8.3mm Retirement of Trust Preferred Debt $4.2mm $0.02 $5.8mm Gains on Sales of Held - for - Sale Loans in Non - Strategic Portfolio $25.2mm $0.11 $39.7mm Loss Accruals Re
Slide 19: #1 Deposit Market Share in Tennessee
9.7% 3.8% 14.8% 11.4% 2.4% 30.2% 18 #1 Deposit Market Share in Tennessee First Tennessee Bank Grew Deposits Faster Than Overall Footprint Market FDIC Deposit Market Share Source: FDIC. Data as of 6.30.15. Numbers and percentages may not add to total due to rounding. 1 West Tennessee deposit growth i
Slide 20: 3Q15 Credit Quality Summary by Portfolio
19 3Q15 Credit Quality Summary by Portfolio Numbers may not add to total due to rounding. Data as of 3Q15. NM: Not meaningful. 1 Credit card, Permanent Mortgage, and Other. 2 Credit card, OTC, and Other Consumer. 3 Net charge - offs are annualized. 4 Exercised clean - up calls on jumbo securitizatio
Slide 21: C&I and CRE Portfolio Detail
Construction 29% Land 3% Mini - Perm/Non - Construction 67% 20 C&I and CRE Portfolio Detail $1.0 $1.2 $1.6 $1.8 $1.4 $0.9 $0.9 $1.0 $1.6 $1.4 $0.0 $0.5 $1.0 $1.5 $2.0 3Q14 4Q14 1Q15 2Q15 3Q15 Period End Average ▪ $9.6B C&I portfolio , diversified by industry, managed primarily in Regional Banking ▪
Slide 22: Consumer Portfolio Overview
21 Core Banking Customers TN 63% CA 7% VA 3% GA 3% NC 3% Other 21% Consumer Portfolio Overview $1.5 $0.7 $0.0 $0.5 $1.0 $1.5 $2.0 In Draw In Repayment HELOC Draw vs Repayment Balances Percent of Home Equity Portfolio: Months Left in Draw Period 17% 20% 13% 7% 6% 37% 0% 5% 10% 15% 20% 25% 30% 35% 40%
Slide 23: Agency & Non-Agency Update
$0 $150 $300 3Q14 4Q14 1Q15 2Q15 3Q15 GSE New Requests Other New Requests Resolved Pipeline 22 Agency & Non - Agency Update Repurchase Resolution Agreements with Both GSEs Total Pipeline of Repurchase Requests 1 $300mm Mortgage Repurchase Reserve Other Whole Loan Sales and Non - Agency ▪ Represent 4
Slide 24: FH Proprietary Securitizations Litigation Certificate Breakdown
FH Proprietary Securitizations Litigation Certificate Breakdown 23 $756mm Numbers/percentages may not add to total due to rounding. Data source: September 2015 Trustee Reports. The Schwab matter, rep ort ed in prior quarters, has been settled and removed from this list. 1 The complainants only purch
Slide 25: Reconciliation to GAAP Financials
Reconciliation to GAAP Financials 24 Slides in this presentation use non - GAAP information of return on tangible common equity. That information is not presented according to generally accepted accounting principles (GAAP ) and is reconciled to GAAP information below. Numbers may not add to total d
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