Financial Data and Key Metrics Changes - The company reported an adjusted EPS of $0.45 per share, reflecting a $0.03 increase from the prior quarter [8] - Pre-provision net revenue (PPNR) grew by $4 million from the first quarter, primarily driven by a $10 million increase in net interest income [8][9] - Total expenses, excluding deferred compensation, increased by only $4 million from the last quarter [16] Business Line Data and Key Metrics Changes - The loan portfolio increased by 2% quarter over quarter, with significant growth in loans to mortgage companies, which rose by $689 million [13] - Fee income decreased by $3 million from the prior quarter, with fixed income performance declining slightly [14] - Non-interest bearing deposits increased by $57 million, supported by successful seasonal marketing promotions [12] Market Data and Key Metrics Changes - Period end balances for both loans and deposits finished 2% higher quarter over quarter [10] - The average rate paid on interest-bearing deposits increased to 2.76%, up from 2.72% in the first quarter [12] - The charge-off ratio remained stable at 22 basis points, in line with expectations [17] Company Strategy and Development Direction - The company aims to achieve a 15% plus return on tangible common equity (ROTCE) over the next two to three years [20] - Focus remains on organic loan growth and enhancing client relationships to drive profitability [20][22] - The company is committed to maintaining capital levels in line with a near-term target of 11% CET1 [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic fundamentals in their southern footprint, expecting stability through 2025 and into 2026 [7] - There is a recognition of increased deposit pressure and competition, but the company remains focused on expense and pricing discipline [8] - Management noted that borrowers are showing resilience and optimism, with expectations for improved activity in the latter half of the year [28] Other Important Information - The company retained approximately 95% of balances associated with clients who had a repricing event in the quarter [12] - The company has a strong credit culture, with years of disciplined underwriting providing stability across economic cycles [17] - The company is exploring opportunities to grow PPNR by $100 million or more through synergies and deepening client relationships [20][78] Q&A Session Summary Question: Client health and loan growth outlook - Management noted that borrowers are resilient and optimistic, with expectations for improved activity as tariff questions settle [28] Question: CET1 target and buyback appetite - Management indicated that they are comfortable with the current CET1 target and will evaluate capital levels based on growth opportunities [30][32] Question: Deposit repricing opportunities - Management acknowledged potential deposit repricing opportunities but noted that competition is heating up, leading to a zigzag pattern in deposit pricing [38] Question: Signs of stress in credit sectors - Management highlighted consumer-facing industries like trucking and auto finance as areas to watch closely for stress [42] Question: Expectations for mortgage warehouse balances - Management expects mortgage warehouse balances to remain stable or increase, depending on the mortgage industry's trends [48] Question: Fee income trends and expense guidance - Management indicated that fee income is under pressure, but they do not expect expenses to exceed a 2% increase [66] Question: Regulatory developments and capital deployment - Management is optimistic about regulatory changes that may allow for greater capital flexibility in the future [100] Question: Trends in loan repricing and spread compression - Management noted increased competition on both deposit and lending sides, with expectations for continued competitive pressures [106]

Financial Data and Key Metrics Changes - The company reported an adjusted EPS of $0.45 per share, reflecting a $0.03 increase from the prior quarter [7] - Pre-provision net revenue (PPNR) grew by $4 million from the first quarter, primarily driven by a $10 million increase in net interest income [7][8] - Total expenses, excluding deferred compensation, increased by only $4 million from the last quarter [15] Business Line Data and Key Metrics Changes - The loan portfolio saw a 2% increase quarter over quarter, with significant growth in loans to mortgage companies, which rose by $689 million [13] - The commercial and industrial (C&I) portfolio also grew, with period-end balances up $316 million quarter over quarter [13] - Fee income performance decreased by $3 million from the prior quarter, with fixed income performance declining slightly [14] Market Data and Key Metrics Changes - Period-end deposit balances increased by $1.4 billion compared to the prior quarter, driven by a $1.6 billion increase in brokered CDs [12] - The average rate paid on interest-bearing deposits increased to 2.76%, up from 2.72% in the first quarter [12] - The charge-off ratio remained stable at 22 basis points, consistent with expectations for the year [16] Company Strategy and Development Direction - The company aims to achieve a return on tangible common equity (ROTCE) of over 15% in the next two to three years, focusing on operational efficiency and profitability [19][22] - There is a strong emphasis on organic loan growth and enhancing client relationships to drive pre-provision net revenue [19][22] - The company is committed to maintaining capital levels in line with a near-term target of 11% CET1, with ongoing discussions about potential adjustments [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic fundamentals in their southern footprint, expecting stability through the latter half of 2025 and into 2026 [6] - There is a recognition of increased competition and deposit pressure, but the company remains focused on profitability and sustainable growth [6][7] - Management noted that borrowers are showing resilience and optimism, which is expected to lead to improved activity in the second half of the year [27] Other Important Information - The company retained over half of its $1 billion share repurchase authorization, using $9 million in the second quarter [17] - The company is seeing opportunities to grow PPNR by $100 million or more over the coming years through synergies and deepening client relationships [19][22] Q&A Session Summary Question: Client health and loan growth outlook - Management noted that borrowers are resilient and optimistic, with expectations for improved activity as tariff questions are settled [27] Question: CET1 target and buyback appetite - Management indicated that they are comfortable with the current CET1 target and will evaluate capital deployment based on loan growth opportunities [30][31] Question: Deposit repricing opportunities - Management sees potential for deposit repricing but expects fluctuations based on market conditions and competition [36][38] Question: Signs of stress in credit sectors - Management highlighted consumer-facing industries like trucking and auto finance as areas to watch closely for stress [42] Question: Expectations for mortgage warehouse balances - Management expects mortgage warehouse balances to remain stable or increase, depending on mortgage industry trends [50] Question: Expense guidance and fee income trends - Management confirmed that the high end of the expense guidance is not expected to exceed 2%, with a focus on maintaining cost discipline [95] Question: Regulatory developments and capital deployment - Management is optimistic about potential regulatory changes that could facilitate M&A opportunities but remains focused on organic growth [102] Question: Trends in loan repricing and margin - Management noted increased competition on both deposit and lending sides, with expectations for continued competitive pressures [106][108]

Financial Performance - Net income available to common shareholders (NIAC) increased to $233 million, a 27% increase compared to 2Q24[7] - Diluted EPS increased to $045, a 32% increase compared to 2Q24[7] - Adjusted ROTCE was 136%, an increase of 57bps from 1Q25[12] - Adjusted PPNR was $338 million, up 1% from 1Q25[14] Balance Sheet - Period end loans increased by $1 billion from 1Q25, driven by loans to mortgage companies (LMC) seasonality and continuing growth within C&I[10] - Period end deposits increased by $14 billion from 1Q25, reflecting incremental brokered deposits and DDA growth[10] - The loan-to-deposit ratio was 96%, down slightly from 1Q25[10] - Tangible book value per share (TBVPS) increased by $040 to $1357, driven by strong earnings & mark-to-market impact[10] Asset Quality & Capital - CET1 ratio was maintained at 110%, in line with the near-term target[10] - ACL/loans ratio decreased by 3bps to 142%, reflecting loans to mortgage companies (LMC) growth and upgrades[10]

Group 1 - First Horizon National (FHN) reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.41 per share, and up from $0.36 per share a year ago, representing an earnings surprise of +9.76% [1] - The company posted revenues of $834 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.89%, compared to $815 million in the same quarter last year [2] - First Horizon has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates two times over the same period [2] Group 2 - The stock has gained approximately 5.4% since the beginning of the year, while the S&P 500 has increased by 6.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $845.07 million, and for the current fiscal year, it is $1.71 on revenues of $3.33 billion [7] - The Zacks Industry Rank for Banks - Southwest is in the top 17% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

[First Horizon Corporation Second Quarter 2025 Results](index=1&type=section&id=First%20Horizon%20Corporation%20Second%20Quarter%202025%20Results) [Executive Summary and Highlights](index=1&type=section&id=Executive%20Summary%20and%20Highlights) First Horizon reported strong Q2 2025 results, with net income available to common shareholders rising to $233 million Financial Performance Summary | Metric | 2Q25 (Actual) | 1Q25 (Actual) | Change (QoQ) | Change (QoQ %) | | :--- | :--- | :--- | :--- | :--- | | Net Income Available to Common Shareholders (NIAC) | $233 million | $213 million | +$20 million | +9.4% | | EPS (Diluted) | $0.45 | $0.41 | +$0.04 | +9.8% | | Adjusted NIAC (Excl. Notable Items) | $229 million | $217 million | +$12 million | +5.5% | | Adjusted EPS (Excl. Notable Items) | $0.45 | $0.42 | +$0.03 | +7.1% | - The CEO expressed satisfaction with the strong performance, attributing it to the company's commitment to safety, soundness, profitability, and growth[2](index=2&type=chunk)[3](index=3&type=chunk) Notable Items Summary | Notable Items (Pre-tax) | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Deferred compensation adjustment | $4 | — | — | | FDIC special assessment | $1 | ($1) | ($2) | | Other notable expenses | — | ($5) | ($3) | | **Total notable items (pre-tax)** | **$4** | **($6)** | **($5)** | | **Total notable items (after-tax)** | **$3** | **($4)** | **($11)** | [Quarterly Financial Performance Analysis (2Q25 vs 1Q25)](index=2&type=section&id=Quarterly%20Financial%20Performance%20Analysis%20(2Q25%20vs%201Q25)) Net interest income grew from loan expansion, while noninterest income and expense both rose due to deferred compensation adjustments Key Financial Metrics (QoQ) | Metric | 2Q25 | 1Q25 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Net Interest Income (FTE) | $645 million | $634 million | +$10 million | | Net Interest Margin | 3.40% | 3.42% | -2 basis points | | Noninterest Income | $189 million | $181 million | +$7 million | | Adjusted Noninterest Income | $189 million | $181 million | +$7 million | | Noninterest Expense | $491 million | $488 million | +$3 million | | Adjusted Noninterest Expense | $495 million | $482 million | +$14 million | - Net interest income increase was primarily driven by **loan portfolio growth**, while the net interest margin decrease was due to higher deposit costs[7](index=7&type=chunk) - Noninterest income growth was largely due to a **$10 million increase in deferred compensation income**, partially offset by a $7 million decline in fixed income revenue[8](index=8&type=chunk) - Adjusted noninterest expense increased by **$14 million**, including $9 million in higher deferred compensation and $7 million in outside services[9](index=9&type=chunk) [Summary Results Tables](index=3&type=section&id=Summary%20Results%20Tables) Summary results show a 9% quarter-over-quarter increase in net income, with improvements in key return and efficiency metrics Income Statement (in millions) | Income Statement (in millions) | 2Q25 | 1Q25 | 2Q24 | Change vs. 1Q25 ($) | Change vs. 1Q25 (%) | Change vs. 2Q24 ($) | Change vs. 2Q24 (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net interest income (taxable equivalent) | $645 | $634 | $633 | $10 | 2% | $12 | 2% | | Noninterest income | $189 | $181 | $186 | $7 | 4% | $3 | 1% | | Total revenue | $830 | $812 | $815 | $17 | 2% | $15 | 2% | | Noninterest expense | $491 | $488 | $500 | $3 | 1% | ($9) | (2)% | | Pre-provision net revenue | $339 | $325 | $315 | $14 | 4% | $24 | 8% | | Provision for credit losses | $30 | $40 | $55 | ($10) | (25)% | ($25) | (45)% | | Net income available to common shareholders | $233 | $213 | $184 | $20 | 9% | $49 | 27% | | EPS | $0.45 | $0.41 | $0.34 | $0.04 | 10% | $0.11 | 32% | Key Performance Metrics | Key Performance Metrics | 2Q25 | 1Q25 | 2Q24 | Change vs. 1Q25 (bp) | Change vs. 2Q24 (bp) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net interest margin | 3.40% | 3.42% | 3.38% | (2)bp | 2 bp | | Efficiency ratio | 59.20% | 60.06% | 61.44% | (86)bp | (224)bp | | Return on average assets | 1.20% | 1.11% | 1.00% | 9 bp | 20 bp | | Return on average common equity ("ROCE") | 11.1% | 10.3% | 9.0% | 84 bp | 216 bp | | Return on average tangible common equity ("ROTCE") | 13.8% | 12.8% | 11.3% | 104 bp | 256 bp | | Common Equity Tier 1 | 11.0% | 10.9% | 11.0% | 7 bp | (5)bp | | Nonperforming loan and leases ratio | 0.94% | 0.98% | 0.91% | (4)bp | 3 bp | | Net charge-off ratio | 0.22% | 0.19% | 0.22% | 3 bp | — bp | Average Balance Sheet (in billions) | Balance Sheet (in billions) | 2Q25 | 1Q25 | 2Q24 | Change vs. 1Q25 ($) | Change vs. 1Q24 ($) | | :--- | :--- | :--- | :--- | :--- | :--- | | Average loans | $62.6 | $61.6 | $62.0 | $0.9 | $0.5 | | Average deposits | $64.7 | $64.5 | $65.0 | $0.2 | ($0.2) | | Average assets | $82.0 | $81.0 | $81.7 | $1.0 | $0.2 | [Adjusted Financial Data & Notable Items](index=8&type=section&id=Adjusted%20Financial%20Data%20%26%20Notable%20Items) Adjusted financial data reflects a positive impact from notable items, leading to higher adjusted net income and EPS Adjusted Financial Data (in millions) | Adjusted Financial Data (in millions) | 2Q25 | 1Q25 | 2Q24 | Change vs. 1Q25 ($) | Change vs. 2Q24 ($) | | :--- | :--- | :--- | :--- | :--- | :--- | | Adjusted total noninterest income | $189 | $181 | $186 | $7 | $3 | | Adjusted total noninterest expense | $495 | $482 | $495 | $14 | $1 | | Adjusted pre-provision net revenue | $338 | $334 | $324 | $4 | $14 | | Adjusted net income available to common shareholders | $229 | $217 | $195 | $12 | $34 | | Adjusted diluted EPS | $0.45 | $0.42 | $0.36 | $0.03 | $0.09 | | Adjusted ROTCE | 13.6% | 13.1% | 12.0% | N/A | N/A | | Adjusted efficiency ratio | 59.5% | 59.1% | 60.5% | N/A | N/A | Summary of Notable Items (in millions) | Summary of Notable Items (in millions) | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | | :--- | :--- | :--- | :--- | :--- | :--- | | Loss on AFS portfolio restructuring | — | — | ($91) | — | — | | Deferred compensation adjustment | $4 | — | — | — | — | | FDIC special assessment | $1 | ($1) | $1 | $2 | ($2) | | Other notable expenses | — | ($5) | ($3) | ($17) | ($3) | | **Total notable items (pre-tax)** | **$4** | **($6)** | **($94)** | **($14)** | **($5)** | | **Net income/(loss) available to common shareholders impact** | **($3)** | **$4** | **$71** | **$11** | **$11** | | **EPS impact of notable items** | **—** | **$0.01** | **$0.13** | **$0.02** | **$0.02** | - Second quarter notable items included a **$1 million expense credit** for the FDIC special assessment and a **$4 million expense credit** from deferred compensation[5](index=5&type=chunk) [Financial Ratios](index=10&type=section&id=Financial%20Ratios) Q2 2025 financial ratios demonstrated improved profitability and capital strength, with higher returns and a stronger CET1 ratio Key Financial Ratios | Financial Ratios | 2Q25 | 1Q25 | 2Q24 | Change vs. 1Q25 (bp) | Change vs. 2Q24 (bp) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net interest margin | 3.40% | 3.42% | 3.38% | (2)bp | 2 bp | | Return on average assets | 1.20% | 1.11% | 1.00% | 9 bp | 20 bp | | Return on average common equity ("ROCE") | 11.14% | 10.30% | 8.98% | 84 bp | 216 bp | | Return on average tangible common equity ("ROTCE") | 13.85% | 12.81% | 11.29% | 104 bp | 256 bp | | Efficiency ratio | 59.20% | 60.06% | 61.44% | (86)bp | (224)bp | | Allowance for credit losses to loans and leases | 1.42% | 1.45% | 1.41% | (3)bp | 1 bp | | Nonperforming loan and leases ratio | 0.94% | 0.98% | 0.91% | (4)bp | 3 bp | | Net charge-off ratio | 0.22% | 0.19% | 0.22% | 3 bp | — bp | Capital Data | Capital Data | 2Q25 | 1Q25 | 2Q24 | Change vs. 1Q25 (bp) | Change vs. 2Q24 (bp) | | :--- | :--- | :--- | :--- | :--- | :--- | | Common Equity Tier 1 | 11.0% | 10.9% | 11.0% | 7 bp | (5)bp | | Tier 1 capital ratio | 12.0% | 11.9% | 12.1% | 6 bp | (4)bp | | Total capital ratio | 14.0% | 14.1% | 14.0% | (9)bp | (7)bp | | Tier 1 leverage ratio | 10.6% | 10.5% | 10.6% | 7 bp | (5)bp | | Risk-weighted assets (billions) | $71.7 | $70.8 | $71.9 | $0.9 | ($0.3) | | Tangible common equity/tangible assets ("TCE/TA") | 8.58% | 8.37% | 8.14% | 21 bp | 44 bp | Selected Balance Sheet Data | Selected Balance Sheet Data | 2Q25 | 1Q25 | 2Q24 | Change vs. 1Q25 | Change vs. 2Q24 | | :--- | :--- | :--- | :--- | :--- | :--- | | Book value per common share | $16.78 | $16.40 | $15.34 | +$0.37 | +$1.44 | | Tangible book value per common share | $13.57 | $13.17 | $12.22 | +$0.40 | +$1.35 | | Full-time equivalent associates | 7,255 | 7,190 | 7,297 | +65 | -42 | [Consolidated Balance Sheet](index=11&type=section&id=Consolidated%20Balance%20Sheet) The Q2 2025 balance sheet expanded, with asset and deposit growth driven by loans to mortgage companies and brokered deposits Period-End Balance Sheet (in millions) | Period-End Balance Sheet (in millions) | 2Q25 | 1Q25 | 2Q24 | Change vs. 1Q25 ($) | Change vs. 2Q24 ($) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total assets | $82,084 | $81,491 | $82,230 | $592 | ($147) | | Loans and leases, net of unearned income | $63,260 | $62,215 | $62,781 | $1,045 | $479 | | Total deposits | $65,576 | $64,208 | $64,794 | $1,369 | $783 | | Total interest-bearing deposits | $49,685 | $48,373 | $48,446 | $1,312 | $1,239 | | Noninterest-bearing deposits | $15,892 | $15,835 | $16,348 | $57 | ($457) | | Total liabilities | $72,826 | $72,447 | $73,275 | $379 | ($449) | | Total shareholders' equity | $9,257 | $9,044 | $8,955 | $213 | $302 | | Loans to mortgage companies | $4,058 | $3,369 | $2,934 | $689 | $1,124 | Average Balance Sheet (in millions) | Average Balance Sheet (in millions) | 2Q25 | 1Q25 | 2Q24 | Change vs. 1Q25 ($) | Change vs. 2Q24 ($) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total assets | $81,958 | $80,965 | $81,721 | $993 | $237 | | Loans and leases, net of unearned income | $62,551 | $61,645 | $62,029 | $906 | $523 | | Total deposits | $64,742 | $64,504 | $64,960 | $238 | ($218) | | Total interest-bearing deposits | $48,891 | $48,970 | $48,629 | ($78) | $263 | | Noninterest-bearing deposits | $15,851 | $15,535 | $16,332 | $317 | ($481) | | Total liabilities | $72,861 | $71,854 | $72,772 | $1,007 | $89 | | Total shareholders' equity | $9,097 | $9,111 | $8,949 | ($14) | $148 | | Loans to mortgage companies | $3,533 | $2,819 | $2,440 | $714 | $1,093 | - Period-end loans and leases increased by **$1.0 billion**, with Loans to Mortgage Companies contributing **$689 million**[10](index=10&type=chunk)[38](index=38&type=chunk) - Period-end deposits increased by **$1.4 billion**, primarily driven by a **$1.6 billion increase in brokered deposits**[11](index=11&type=chunk)[38](index=38&type=chunk) [Consolidated Net Interest Income and Average Balance Sheet: Yields and Rates](index=14&type=section&id=Consolidated%20Net%20Interest%20Income%20and%20Average%20Balance%20Sheet%3A%20Yields%20and%20Rates) Net interest income increased due to loan growth and higher yields, though the net interest margin compressed slightly from rising deposit costs Net Interest Income and Margin Analysis | Metric (in millions, except rates) | 2Q25 | 1Q25 | 2Q24 | Change vs. 1Q25 ($) | Change vs. 2Q24 ($) | | :--- | :--- | :--- | :--- | :--- | :--- | | Interest income | $1,047 | $1,017 | $1,097 | $30 | ($50) | | Interest expense | $403 | $383 | $464 | $20 | ($61) | | Net interest income - tax equivalent | $645 | $634 | $633 | $10 | $12 | | Net interest income | $641 | $631 | $629 | $10 | $12 | | Total loan yield | 5.92% | 5.89% | 6.34% | +3 bp | -42 bp | | Total deposit cost | 2.09% | 2.07% | 2.47% | +2 bp | -38 bp | | Net interest margin | 3.40% | 3.42% | 3.38% | -2 bp | +2 bp | - **Commercial loan yields increased to 6.21%** from 6.18% QoQ, contributing to the overall loan yield increase[41](index=41&type=chunk) - Interest-bearing deposit costs rose, with **savings deposit cost at 2.73%** (up 6 bp) and **time deposit cost at 3.88%** (down 12 bp) from 1Q25[41](index=41&type=chunk) [Consolidated Asset Quality](index=16&type=section&id=Consolidated%20Asset%20Quality) Asset quality improved in Q2 2025, marked by lower nonperforming loans and a decreased provision for credit losses Asset Quality Metrics (in millions) | Asset Quality Metric (in millions) | 2Q25 | 1Q25 | 2Q24 | Change vs. 1Q25 ($) | Change vs. 2Q24 ($) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total nonperforming loans and leases | $593 | $609 | $574 | ($17) | $19 | | Nonperforming loans and leases to loans and leases | 0.94% | 0.98% | 0.91% | -4 bp | +3 bp | | Total loans and leases 90 days or more past due and accruing | $8 | $8 | $6 | $0 | $3 | | Total net charge-offs | $34 | $29 | $34 | $5 | $0 | | Total loans and leases annualized net charge-off rate | 0.22% | 0.19% | 0.22% | +3 bp | +0 bp | | Allowance for loan and lease losses - ending | $814 | $822 | $821 | ($8) | ($7) | | Reserve for unfunded commitments - ending | $87 | $83 | $66 | $4 | $21 | | Total allowance for credit losses - ending | $901 | $905 | $887 | ($4) | $14 | | Total allowance for credit losses to loans and leases | 1.42% | 1.45% | 1.41% | -3 bp | +1 bp | | Total allowance for credit losses to nonperforming loans and leases | 152% | 148% | 155% | +4% | -3% | - **Provision expense decreased by $10 million** to $30 million from the previous quarter[12](index=12&type=chunk) - **Nonperforming loans decreased by $17 million**, with an increase in C&I offset by reductions in commercial real estate[12](index=12&type=chunk) - The **ACL to loans ratio decreased to 1.42%**, primarily due to a higher balance of loans to mortgage companies and positive net risk grade migration[12](index=12&type=chunk) [Segment Reporting](index=20&type=section&id=Segment%20Reporting) Segment performance was varied, with Commercial, Consumer, and Wealth showing increased net income, while Wholesale saw loan growth Commercial, Consumer, and Wealth Segment (in millions) | Metric | 2Q25 | 1Q25 | Change vs. 1Q25 ($) | Change vs. 1Q25 (%) | | :--- | :--- | :--- | :--- | :--- | | Net interest income | $634 | $624 | $10 | 2% | | Noninterest income | $113 | $110 | $3 | 3% | | Total revenue | $747 | $734 | $13 | 2% | | Net income | $289 | $268 | $21 | 8% | | Total loans and leases (Avg) | $56.3B | $56.2B | $0.1B | 0% | | Return on average assets | 1.98% | 1.85% | +13 bp | N/A | | Efficiency ratio | 47.43% | 46.85% | +58 bp | N/A | Wholesale Segment (in millions) | Metric | 2Q25 | 1Q25 | Change vs. 1Q25 ($) | Change vs. 1Q25 (%) | | :--- | :--- | :--- | :--- | :--- | | Net interest income | $57 | $50 | $8 | 15% | | Noninterest income | $53 | $59 | ($6) | (10)% | | Total revenue | $111 | $109 | $2 | 1% | | Net income | $22 | $23 | $0 | (2)% | | Total loans and leases (Avg) | $5.8B | $5.0B | $0.8B | 16% | | Fixed income product average daily revenue (thousands) | $550 | $586 | ($35) | (6)% | | Efficiency ratio | 68.29% | 69.58% | (129)bp | N/A | Corporate Segment (in millions) | Metric | 2Q25 | 1Q25 | Change vs. 1Q25 ($) | Change vs. 1Q25 (%) | | :--- | :--- | :--- | :--- | :--- | | Net interest income/(expense) | ($50) | ($42) | ($8) | (18)% | | Noninterest income | $22 | $12 | $10 | 84% | | Total revenues | ($28) | ($30) | $2 | 8% | | Net income/(loss) | ($67) | ($69) | $2 | 2% | | Interest bearing assets (Avg) | $11.0B | $10.8B | $0.2B | 1% | - The Commercial, Consumer, and Wealth segment offers traditional lending, deposit taking, investment, and wealth management services[56](index=56&type=chunk) - The Wholesale segment focuses on specialized product offerings like mortgage warehouse lending and fixed income securities sales[59](index=59&type=chunk) - The Corporate segment manages corporate support functions, centralized capital and funding, and includes run-off businesses[62](index=62&type=chunk) [Non-GAAP to GAAP Reconciliations](index=23&type=section&id=Non-GAAP%20to%20GAAP%20Reconciliations) This section provides detailed reconciliations of non-GAAP financial measures to their most comparable GAAP measures for transparency Tangible Common Equity (Non-GAAP) (in millions) | Metric | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Total equity (GAAP) | $9,257 | $9,044 | $8,955 | | Total common equity | $8,536 | $8,322 | $8,234 | | Intangible assets (GAAP) | $1,633 | $1,643 | $1,674 | | Tangible common equity (Non-GAAP) | $6,903 | $6,680 | $6,560 | | Total assets (GAAP) | $82,084 | $81,491 | $82,230 | | Tangible assets (Non-GAAP) | $80,451 | $79,849 | $80,556 | | Tangible common equity to tangible assets ("TCE/TA") | 8.58% | 8.37% | 8.14% | | Tangible book value per common share | $13.57 | $13.17 | $12.22 | Adjusted Diluted EPS & ROA (in millions, except per share data) | Metric | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Net income available to common shareholders (GAAP) | $233 | $213 | $184 | | Adjusted net income available to common shareholders (Non-GAAP) | $229 | $217 | $195 | | Diluted EPS (GAAP) | $0.45 | $0.41 | $0.34 | | Adjusted diluted EPS (Non-GAAP) | $0.45 | $0.42 | $0.36 | | Net Income ("NI") (GAAP) | $244 | $222 | $204 | | Adjusted NI (Non-GAAP) | $241 | $227 | $208 | | ROA (GAAP) | 1.20% | 1.11% | 1.00% | | Adjusted ROA (Non-GAAP) | 1.18% | 1.14% | 1.02% | Adjusted Efficiency Ratio (in millions) | Metric | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Noninterest expense (GAAP) | $491 | $488 | $500 | | Adjusted noninterest expense (Non-GAAP) | $495 | $482 | $495 | | Revenue (GAAP) | $830 | $812 | $815 | | Adjusted revenue (Non-GAAP) | $833 | $816 | $819 | | Efficiency ratio (GAAP) | 59.20% | 60.06% | 61.44% | | Adjusted efficiency ratio (Non-GAAP) | 59.47% | 59.09% | 60.47% | [Glossary of Terms](index=28&type=section&id=Glossary%20of%20Terms) This section defines key financial, regulatory, and operational terms used throughout the report to ensure clarity - Definitions are provided for key capital, profitability, and asset quality ratios, including CET1, FTE, ROA, ROCE, ROTCE, and NPL ratios[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) - Operating segments are defined as Commercial, Consumer, and Wealth; Wholesale; and Corporate, outlining their respective services and focus areas[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) [General Information](index=5&type=section&id=General%20Information) This section provides disclosures on forward-looking statements, non-GAAP measures, and conference call information - The document contains forward-looking statements subject to significant business, operational, economic, and competitive uncertainties[17](index=17&type=chunk) - Certain non-GAAP measures are used by management to understand financial condition and are reconciled to GAAP measures[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) - Conference call details for July 16, 2025, including dial-in numbers, webcast link, and replay information, are provided[23](index=23&type=chunk)[24](index=24&type=chunk) - First Horizon Corporation (NYSE: FHN) is a leading regional financial services company with **$82.1 billion in assets** as of June 30, 2025[25](index=25&type=chunk)

Financial Performance - First Horizon Corporation reported a net income available to common shareholders of $233 million for the second quarter of 2025, translating to earnings per share (EPS) of $0.45, an increase of $0.04 from the prior quarter's EPS of $0.41 [1] - Adjusted net income for the second quarter was $229 million or $0.45 per share, up from $217 million or $0.42 per share in the first quarter of 2025, reflecting a $0.03 increase [1] Management Commentary - The President and CEO, Bryan Jordan, expressed satisfaction with the company's strong performance, emphasizing a commitment to safety, soundness, profitability, and growth [2] - Jordan highlighted the strengths of the business model and geographic footprint as key factors contributing to the positive results in the second quarter and the first half of the year [2] Company Overview - First Horizon Corporation, headquartered in Memphis, TN, has $82.1 billion in assets as of June 30, 2025, and operates in 12 states primarily in the southern U.S. [12] - The company offers a range of financial services including commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services [12]

Core Viewpoint - Analysts expect First Horizon National (FHN) to report quarterly earnings of $0.41 per share, reflecting a year-over-year increase of 13.9%, with revenues projected at $826.62 million, up 1.4% from the previous year [1] Earnings Projections - The consensus EPS estimate has been adjusted downward by 0.6% over the past 30 days, indicating a reassessment by analysts [1][2] - Revisions to earnings projections are crucial for predicting investor behavior and stock performance [2] Key Metrics Forecast - Analysts predict an 'Efficiency Ratio' of 60.5%, down from 61.4% in the same quarter last year [4] - 'Net Interest Margin (FTE)' is expected to remain stable at 3.4%, consistent with the previous year's figure [4] - 'Average Balance - Total interest earning assets' is projected to reach $75.43 billion, slightly up from $75.24 billion last year [5] - 'Total nonperforming assets' are expected to be $629.23 million, an increase from $582.00 million in the same quarter last year [5] - 'Total nonperforming loans and leases' are forecasted at $627.23 million, up from $574.00 million last year [6] - 'Total Non-Interest Income' is estimated at $189.18 million, compared to $186.00 million in the same quarter last year [6] - 'Net Interest Income' is projected to be $637.47 million, slightly higher than the $629.00 million reported last year [7] - 'Service charges and fees' are expected to be $53.02 million, down from $58.00 million last year [8] - 'Other noninterest income' is forecasted at $18.45 million, up from $17.00 million last year [8] - 'Mortgage banking' is predicted at $9.62 million, down from $10.00 million last year [9] - 'Fixed income' is estimated at $49.28 million, an increase from $40.00 million last year [9] Stock Performance - Shares of First Horizon have returned +11.6% over the past month, outperforming the Zacks S&P 500 composite's +4.1% change [9]

Core Viewpoint - First Horizon National (FHN) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on July 16, with a consensus estimate of $0.41 per share, reflecting a year-over-year increase of +13.9%. Revenues are projected to be $826.37 million, up 1.4% from the previous year [3][2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 1.73% lower, indicating a reassessment by analysts regarding the company's earnings prospects [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a positive Earnings ESP of +2.94% for First Horizon, suggesting analysts have recently become more optimistic about the company's earnings. However, the stock holds a Zacks Rank of 4, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, First Horizon exceeded the consensus EPS estimate of $0.40 by delivering earnings of $0.42, resulting in a surprise of +5.00%. Over the past four quarters, the company has beaten consensus EPS estimates three times [13][14]. Conclusion - While First Horizon does not appear to be a strong candidate for an earnings beat, investors should consider other factors when making decisions regarding the stock ahead of the earnings release [17].

Core Viewpoint - First Horizon Corporation will redeem all outstanding shares of its 6.625% Fixed-to-Floating Non-Cumulative Perpetual Preferred Stock, Series B, on August 1, 2025, with no shares remaining outstanding after the redemption [1][2]. Redemption Details - The redemption price is set at $25.00 per Series B Depository Share, equating to $10,000 per share of Series B Preferred Stock [2]. - Accrued dividends will not be included in the redemption price since the Redemption Date coincides with a dividend payment date [2]. - The regular semi-annual dividend declared in April will be paid separately on August 1, 2025, to shareholders of record as of July 17, 2025 [2]. Company Overview - First Horizon Corporation, with $81.5 billion in assets as of March 31, 2025, is a prominent regional financial services company headquartered in Memphis, TN [4]. - The company operates in 12 states across the southern U.S. and offers a range of services including commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking [4]. - First Horizon has received recognition as one of the nation's best employers by Fortune and Forbes magazines and is listed as a Top 10 Most Reputable U.S. Bank [4].

Core Insights - First Horizon Bank has been recognized on Forbes' list of America's Best-In-State Banks 2025, highlighting its value to residents in each state [1][2] - The ranking is based on an independent survey of over 26,000 customers, evaluating banks on criteria such as Trust, Financial Advice, Client Services, Digital Services, Branch Services, and Terms & Conditions [1] Company Overview - First Horizon Corporation, with $81.5 billion in assets as of March 31, 2025, is a leading regional financial services company headquartered in Memphis, TN [3] - The company operates in 12 states across the southern U.S. and offers a wide range of services including commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking [3] - First Horizon has received recognition as one of the nation's best employers by Fortune and Forbes magazines and is listed as a Top 10 Most Reputable U.S. Bank [3]