Newsweek America's Greatest Workplaces 2025 Newsweek America's Greatest Workplaces 2025 This recognition reflects Newsweek and Plant-A Insights Group's rigorous review of leading workplaces nationwide. The assessment included direct associate feedback, thorough company evaluations, publicly sourced information and analysis of more than 120 performance criteria. Being named to this esteemed list highlights First Horizon's dedication to creating a collaborative, inclusive, and growth-focused environment for a ...

Core Viewpoint - First Horizon Corporation (FHN) reported second-quarter 2025 adjusted earnings per share (EPS) of 45 cents, exceeding the Zacks Consensus Estimate of 41 cents and up from 36 cents in the same quarter last year [1][10] Financial Performance - Net income available to common shareholders on a GAAP basis was $233 million, reflecting a 27% year-over-year increase [2] - Total quarterly revenues reached $830 million, a 1.8% increase year over year, although it missed the Zacks Consensus Estimate by 0.9% [3][10] - Net interest income (NII) rose nearly 2% year over year to $641 million, with the net interest margin increasing by 2 basis points to 3.40% [3] - Non-interest income was $189 million, up 1.6% from the previous year [3] Expense Management - Non-interest expenses decreased by 1.8% year over year to $491 million, attributed to declines in most cost components except for occupancy, equipment costs, and salary and benefits [4] - The efficiency ratio improved to 59.20%, down from 61.44% in the prior year, indicating enhanced profitability [4] Loan and Deposit Growth - Total period-end loans and leases were $63.3 billion, a 1.7% increase from the previous quarter [5] - Total period-end deposits rose to $65.6 billion, up 2.1% [5] Credit Quality - Non-performing loans and leases increased by 3.3% year over year to $593 million [6] - The allowance for loan and lease losses decreased by 0.8% year over year to $814 million, with the ratio of total allowance to loans and leases at 1.29%, down from 1.31% [6] - Net charge-offs remained flat year over year at $34 million, while the provision for credit losses dropped 45% to $30 million [7] Capital Ratios - As of June 30, 2025, the Common Equity Tier 1 ratio was stable at 11%, with the total capital ratio also unchanged at 14% [8]

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].