First Horizon Corporation · NYSE:FHN
First Horizon — KBW Winter Financial Services Symposium 2021
14 slides from First Horizon's conference presentation, Feb 11, 2021
Slide 1: KBW Winter Financial Services Symposium
KBW Winter Financial Services Symposium William Losch, Chief Financial Officer February 11, 2021
Slide 2: Disclaimer
Disclaimer 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. Annualized, pro forma, proje
Slide 3: Resilient Business Model Well-Positioned to Deliver Top-Quartile Returns
Resilient Business Model Well-Positioned to Deliver Top-Quartile Returns MOE • Integration activities ongoing, cost saves being realized, and early success on revenue synergies evident Progressing Well • Merger providing additional expense, investment and credit flexibility in current environment Pr
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 MSAs Competitive Advantage • Diversified business mix with regional and specialty banking focus Highly attractive markets Countercyclical businesses allow for more resilie
Slide 5: Well-diversified, balanced business mix
Well-diversified, balanced business mix Positioned to drive relative outperformance with strong collaboration across regional footprint and specialty businesses Regional Banking Specialty Banking ROA ROE1 Efficiency Ratio $59 billion ROA ROE1 Efficiency Ratio 1.7% 18% 55% loan mix2 2.7% 36% 39% Asse
Slide 6: Merger integration update
Merger integration update Aligning cultures and making good progress; focused on optimizing customer experience Financial Highlights • Associate retention remains strong, including in leadership/critical positions (95%) Talent • New sales team structures and credit partnerships for Increased targete
Slide 7: 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 Growth1,2 • Fixed income, loans to mortgage companies and 4.5% mortgage banking provide attractive ballast in low- rate environments 2.6%
Slide 8: 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 • PPNR/Assets outperformed CCAR-bank median ~150 bps 4.91% in NPL levels 1 • Loss rates >400 bps below CCAR-bank
Slide 9: Redeploying capital to higher growth, higher return products and markets
Redeploying capital to higher growth, higher return products and markets Focus on profitable, sustainable relationship-driven growth $40.6 billion 4Q20 Regional Loan Portfolio FL LA 13% 22% TX • Expanded footprint has significant scale and 10% client reach in attractive markets 9% NC & VA Realloca
Slide 10: Investing to enhance client experience and improve efficiency
Investing to enhance client experience and improve efficiency Merger expense saves drive incremental investment in people and technology • Net targeted ~$200 million in cost saves Expense Gross ~$250 million Saves Allows for reinvestment of ~$50 million through mid-2022 • nCino platform deployme
Slide 11: Targeting top-quartile returns
Targeting top-quartile returns Well positioned to deliver top-quartile returns from a diversified business model Medium-Term Targets Near-Zero Interest Rate Pre-Pandemic Interest Rate Environment Environment Adjusted ROTCE ~12% - 14% ~15% - 17% Fed funds effective rate ~10 bps ~2.10% 10-year treasur
Slide 12: Well-positioned to deliver strong execution
Well-positioned to deliver strong execution • MOE enhances efficiency with cost saves and technology investments Uniquely positioned to deliver significant cost savings in a challenging environment • Defensive, balanced business model to navigate challenging environment Countercyclical businesse
Slide 13: Appendix
“ Appendix 3| Py
Slide 14: Stress testing
Stress testing Countercyclical businesses and favorable portfolio mix help First Horizon outperform peers in latest stress test • Severe global recession with heightened stress in commercial Fixed Income Countercyclical Contribution real estate and corporate debt markets Note: 3Q '20 Total PPNR = 71
First Horizon — KBW Winter Financial Services Symposium 2021 on 6ix