First Horizon Corporation · NYSE:FHN
First Horizon — Wells Fargo 2021 Virtual Financial Services Investor Conference
20 slides from First Horizon's conference presentation, May 19, 2021
Slide 1: Wells Fargo 2021 Virtual Financial Services Investor Conference
Wells Fargo 2021 Virtual Financial Services Investor Conference William Losch, Chief Financial Officer May 19, 2021
Slide 2: Disclaimer
Disclaimer 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 believ
Slide 3: Resilient business model well-positioned to deliver top-quartile returns
Resilient business model well-positioned to deliver top-quartile returns Diversified • High-quality relationships in attractive Southern markets and commercially-oriented specialty businesses Business Model • Strong fee income results mitigating interest rate headwinds MOE • Integration activities o
Slide 4: Well-diversified business model with attractive geographic footprint
Well-diversified business model with attractive geographic footprint Top 5 deposit market share in 10 of the Top 20 Southern MSAs1 Competitive Advantage • Diversified business mix with regional and specialty banking focus Highly attractive markets Countercyclical businesses allow for more resili
Slide 5: Balanced business mix
Balanced business mix Positioned to drive relative outperformance with strong collaboration across regional footprint and specialty businesses Regional Banking 1Q21 Specialty Banking ROA ROE1 Efficiency Ratio $57.3 billion ROA ROE1 Efficiency Ratio 2.1% 24% 52% loan mix2 2.8% 34% 45% Asset Driven: •
Slide 6: Countercyclical and specialty businesses enhance revenue profile
Countercyclical and specialty businesses enhance revenue profile Emphasis on high-return businesses where we have deep knowledge and expertise 2019 – 2020 Revenue Growth1 • Fixed income, loans to mortgage companies and 4.5% mortgage banking provide attractive ballast in low-rate environments 2.6%
Slide 7: Lower-risk profile with solid capital positioning
Lower-risk profile with solid capital positioning Stress test results illustrate PPNR resilience and lower-risk characteristics of commercially-oriented portfolio Significant improvement in NPL levels1 • PPNR/Assets outperformed CCAR-bank median 4.91% ~150 bps • Loss rates >400 bps below CCAR-bank m
Slide 8: Merger integration update
Merger integration update Aligning cultures and making good progress; focused on optimizing customer experience Talent • Associate retention remains strong, including in Financial Highlights leadership/critical positions at~93% Targeting annualized cost saves of • Completed SunTrust Branch conversio
Slide 9: Fintech/digital investments provide for enhanced value creation
Fintech/digital investments provide for enhanced value creation Developing ecosystem of strategic technology partnerships focused on driving new revenue streams, enhanced efficiency and improved customer experience Core Capabilities Fintech Investments Enhancements during merger Provides for more ef
Slide 10: Resilient business model well-positioned to deliver top-quartile returns
Resilient business model well-positioned to deliver top-quartile returns Diversified • High-quality relationships in attractive Southern markets and commercially-oriented specialty businesses Business Model • Strong fee income results mitigating interest rate headwinds MOE • Integration activities o
Slide 11: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations 11
Slide 12: Reconciliation to GAAP financials
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. Adjusted FHN historical quarterly income statements 1Q21 4Q20 3Q20 2Q20
Slide 13: Reconciliation to GAAP financials
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. FHN Adjusted 1Q21 compared to Adjusted 4Q20 excluding unusual items 1Q21
Slide 14: Reconciliation to GAAP financials
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. Adjusted 1Q21 FHN compared to adjusted combined historical data: non-int
Slide 15: Reconciliation to GAAP financials
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. Adjusted FHN historical annual income statements 2020 2019 Notable Non-
Slide 16: Reconciliation to GAAP financials
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. 1Q21 & 4Q20 compared to Combined Historical Balance Sheet Data 1Q21 4Q20
Slide 17: Reconciliation to GAAP financials
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) 1Q21 4Q20 3Q20 2Q20 1Q20 Tangibl
Slide 18: Reconciliation to GAAP financials
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. ($s in millions, except per share data) 1Q21 4Q20 3Q20 2Q20 1Q20 Adjuste
Slide 19: Reconciliation to GAAP financials
Reconciliation to GAAP financials Slides in this presentation use Non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. ($ in millions except per share data) 1Q21 4Q20 3Q20 2Q20 1Q20 Adjusted
Slide 20: Reconciliation to GAAP financials
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. ($ in millions except per share data) 1Q21 NIAC (GAAP) $ 225 Tax effecte
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