First Horizon Corporation · NYSE:FHN
First Horizon — Goldman Sachs 2021 US Financial Services Conference
22 slides from First Horizon's conference presentation, Dec 8, 2021
Slide 1: Goldman Sachs 2021 US Financial Services Conference
Goldman Sachs 2021 US Financial Services Conference December 8, 2021 Bryan Jordan, President & Chief Executive Officer
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: 3Q21 GAAP financial summary
3Q21 GAAP financial summary1 Reported 3Q21 Change vs. $s in millions except per share data 3Q21 2Q21 1Q21 4Q20 3Q20 2Q21 3Q20 $/bps % $/bps % Net interest income $ 492 $ 497 $ 508 $ 522 $ 532 $ (5) (1)% $ (40) (8)% Fee income 247 285 298 288 823 (38) (13)% (576) (70)% Total revenue 738 781 806 810 1
Slide 4: Well-positioned to deliver enhanced shareholder value
Well-positioned to deliver enhanced shareholder value • Well-diversified business model with attractive geographic footprint • Positioned to drive relative outperformance with strong collaboration across regional footprint and specialty businesses • Power of combined business model starting to emerg
Slide 5: Well-diversified business model with attractive geographic footprint
Well-diversified business model with attractive geographic footprint Top 5 deposit market share in 12 of our Competitive Advantage Top 20 Southern MSAs1 VA • Diversified business mix with regional TN and specialty banking focus AR NC SC Highly attractive markets MS AL GA Headquarters Countercycl
Slide 6: More diversified, balanced business mix
More diversified, balanced business mix Positioned to drive relative outperformance with strong collaboration across regional footprint and specialty businesses $54.8 billion Specialty Banking Regional Banking loan mix2 ROA ROE1 Efficiency Ratio ROA ROE1 Efficiency Ratio 2.3% 26% 54% 2.8% 34% 48% As
Slide 7: Power of more diversified, higher-growth business model starting to emerge
Power of more diversified, higher-growth business model starting to emerge Adjusted EPS1 Adjusted ROTCE TBV $0.50 18.4% $10.88 +1% +2% -7% Core Traditional Banking Adjusted Net Interest Income Fees2 Noninterest Income +3% -26% +2% Adjusted Adjusted Commercial Loans Expense Provision Credit ex. PPP -
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 leadership/critical positions Targeting at~92% annualized cost saves of • Early system conversions completed include: ~$200 millio
Slide 9: 3-year strategic plan is focused on delivering enhanced shareholder value
3-year strategic plan is focused on delivering enhanced shareholder value Well-positioned to help clients unlock full potential with capital and counsel following integration Drive Execute Regional & Specialty bank plans to deliver sound, profitable growth Organic Growth Leverage recent investments
Slide 10: Drive organic growth
Drive organic growth Deliver sound profitable growth and leverage digital, treasury management and marketing investments Deliver • Drive prudent loan growth funded by lower cost deposits Treasury Management sustainable • Accelerate traditional banking fee income growth penetration1 vs. peers value •
Slide 11: Selectively transform
Selectively transform Focus on reducing costs, increasing productivity and specialization to drive improved risk-adjusted returns Process Redesign Robotic Automation Organizational Reduce cost Design & Change Facilities of delivery to drive efficiency Increase Wealth Corporate Healthcare specializat
Slide 12: Our ESG strategy is supported by our people strategy
Our ESG strategy is supported by our people strategy Our “Here for Good” strategy is an instrumental foundation for our future success ESG framework guided by five interrelated pillars Our vision is to be an employer of choice, while fostering opportunity, development and effectiveness to win with t
Slide 13: Focus on improving capital efficiency and returns
Focus on improving capital efficiency and returns1 Return on average tangible common equity • We have recently begun to opportunistically return more capital to shareholders given lower growth environment Increased common share repurchase authorization by $500 million Repurchased 9.0 million sha
Slide 14: Well-positioned to deliver enhanced shareholder value
Well-positioned to deliver enhanced shareholder value • Deliver further benefits of diversified business model through revenue synergies and organic growth – Leverage recent investments in technology to support dynamic digital needs of clients and associates • Support people and communities – Attrac
Slide 15: Appendix
Appendix 15
Slide 16: Well-positioned to benefit from rising rates
Well-positioned to benefit from rising rates Net Interest Income Interest Rate Risk Sensitivity 15.8% Loan Portfolio • $55.4 billion: variable/fixed repricing mix of 63%/37% net of hedges 9.3% 7.5% • ~$26.8 billion tied to LIBOR and ~$4.5 billion tied to Prime 5.6% 3.7% • ~18% of variable rate loans
Slide 17: Reconciliation to GAAP financials
Reconciliation to GAAP financials Slides in this presentation use Non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. Adjusted FHN historical quarterly income statements 3Q21 2Q21 1Q21 4Q20
Slide 18: Reconciliation to GAAP financials
Reconciliation to GAAP financials Slides in this presentation use Non-GAAP information. That information is not presented according to generally accepted accounting principles (GAAP) and is reconciled to GAAP information below. ($s in millions, except per share data) 3Q21 2Q21 1Q21 4Q20 3Q20 Tangibl
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. ($s in millions, except per share data) 3Q21 2Q21 1Q21 4Q20 3Q20 Adjuste
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) 3Q21 2Q21 1Q21 4Q20 3Q20 Adjusted N
Slide 21: 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. 21
Slide 22: 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. Period-end Average $s in millions 3Q21 2Q21 3Q21 vs 2Q21 3Q21 2Q21 3Q21
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