First Horizon (FHN) 2025 Conference Transcript

First Horizon (FHN) 2025 Conference Summary Company Overview - Company: First Horizon (FHN) - Date: June 11, 2025 - Speakers: Brian Jordan (Chairman, President, and CEO), Tammy Locascio (COO) Key Points Strategic Opportunities - First Horizon has made significant progress post the termination of the TD merger, focusing on integrating operations and enhancing customer relationships [4][5] - The company aims to consolidate its go-to-market strategies in consumer banking from 13 to 1, targeting over $100 billion in pretax operating profit from existing business [5][6] Customer Sentiment and Economic Outlook - Customer sentiment remains positive, with a focus on understanding the impacts of tariff negotiations and inflation [9][10] - The company anticipates a pickup in economic momentum in its southern footprint once clarity on trade agreements and inflation is achieved [10] Lending Environment - The lending environment is stable, with credit quality remaining strong and loan growth at approximately 1% for the quarter [14] - Commercial real estate lending has seen a decline due to higher interest rates, with a noted decrease of $25 million in the current quarter [15] Interest Rate Management - First Horizon has an interest rate neutral balance sheet, which allows it to manage fluctuations in interest rates effectively [20][21] - The company has successfully reduced deposit costs by 27 basis points, although competition in the market has increased [23][24] Technology Investments - Significant investments in technology are being made to enhance customer experiences and operational efficiency, including moving platforms to the cloud [30][31] - The company is focused on building a consumer digital platform and a new suite of private client products [32] Regulatory Environment - First Horizon is optimistic about potential regulatory changes that could ease compliance burdens as it approaches the $100 billion asset threshold [40][41] Credit Quality and Industry Specialization - The company maintains a constructive outlook on credit quality, with credit losses expected to remain in the mid to high teens [50] - Specialization in various industries, such as restaurant franchise finance, enhances relationship-building and credit performance [52][55] M&A Environment - The M&A environment is expected to improve, with clarity on interest rates and credit marks being crucial for future acquisitions [71][72] Market Perception - The market recognizes the value of First Horizon's southern footprint and the potential for improved profitability [73] Additional Insights - The company has successfully retained 95% of customers who were repriced after special rate offers, indicating strong customer relationship management [27][28] - The focus on expense discipline remains, with contingency plans in place for project management [35][36] This summary encapsulates the key insights and strategic directions discussed during the First Horizon conference, highlighting the company's focus on growth, customer relationships, and navigating the current economic landscape.