Financial Analysis

Contingencies and Other Disclosures Contingencies Contingent Liabilities Overview Contingent liabilities arise in the ordinary course of business. Often they are related to lawsuits, arbitration, mediation, and other forms of litigation. Various litigation matters currently are threatened or pending against FHN and its subsidiaries. Also, FHN at times receives requests for information, subpoenas, or other inquiries from federal, state, and local regulators, from other government authorities, and from other parties concerning various matters relating to FHNs current or former businesses. Certain matters of that sort are pending at most times, and FHN generally cooperates when those matters arise. Pending and threatened litigation matters sometimes are settled by the parties, and sometimes pending matters are resolved in court or before an arbitrator or are withdrawn. Regardless of the manner of resolution, frequently the most significant changes in status of a matter occur over a short time period, often following a lengthy period of little substantive activity. In view of the inherent difficulty of predicting the outcome of these matters, particularly where the claimants seek very large or indeterminate damages, or where the cases present novel legal theories or involve a large number of parties, or where claims or other actions may be possible but have not been brought, FHN cannot reasonably determine what the eventual outcome of the matters will be, what the timing of the u …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Stock Options and Restricted Stock Equity Compensation Plans FHN currently has one plan which authorizes the grant of new stock-based awards, the 2021 Incentive Plan (the IP). New awards under the IP may be granted to any of FHN's directors, officers, or associates. The IP was approved by shareholders in April 2021 and again in April 2024. The IP authorizes a broad range of award types, including restricted shares, stock units, cash units, and stock options. Stock units may be paid in shares or cash, depending upon the terms of the award. The IP also authorizes the grant of stock appreciation rights, though no such grants have been made under the IP or recent predecessor plans. Unvested awards have service and/or performance conditions which must be met in order for the shares to vest. Awards generally have service-vesting conditions, meaning that the associate must remain employed by FHN for certain periods in order for the award to vest. Some outstanding awards also have performance conditions. FHN operates the IP by establishing award programs, each of which is intended to cover a specific need. Programs are created, changed, or terminated as needs change. On December 31, 2025, there were 10,793,408 shares available for new awards under the IP. This includes the new/additional shares originally authorized under the IP along with shares underlying ECP awards that have been forfeited or canceled since the IP was approved by shareholders, net of shares underlying IP awards t …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets Goodwill FHN performed the required annual goodwill impairment test as of October 1, 2025. The annual impairment test did not indicate impairment in any of FHNs reporting units as of the testing date. Following the testing date, management evaluated the events and circumstances that could indicate that goodwill might be impaired and concluded that it is not more likely than not that goodwill was impaired. If there are any triggering events between annual evaluations, management will evaluate whether an interim impairment analysis is warranted. Accounting estimates and assumptions were made about FHNs future performance and cash flows, as well as other prevailing market factors (e.g., interest rates, economic trends, etc.) when determining fair value as part of the goodwill impairment test. While management used the best information available to estimate future performance for each reporting unit, future adjustments to managements projections may be necessary if conditions differ substantially from the assumptions used in making the estimates. As further discussed in Note 19 - Business Segment Information, FHN reorganized its management reporting structure during 2024 and, accordingly, its segment reporting structure and reporting units used in the assessment of goodwill impairment. In connection with the reorganization, goodwill was reallocated to segments and reporting units. The following is a summary of goodwill by reportable segment in …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Income Taxes The aggregate amount of income taxes included in the Consolidated Statements of Income and the Consolidated Statements of Changes in Equity for the years ended December 31 were as follows. Table 8.14.1 INCOME TAX EXPENSE (Dollars in millions) 2025 2024 2023 Consolidated Statements of Income: Income tax expense $ 282 $ 211 $ 212 Consolidated Statements of Changes in Equity: Income tax expense (benefit) related to: Net unrealized gains (losses) on securities available for sale 88 17 44 Net unrealized gains (losses) on cash flow hedges 17 (5) 15 Net unrealized gains (losses) on pension and other postretirement plans (1) 7 (1) Total $ 386 $ 230 $ 270 All income (loss) from continuing operations before income tax expense (benefit) is domestic. Table 8.14.2 INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAX EXPENSE (BENEFIT) (Dollars in millions) 2025 2024 2023 United States $ 1,280 $ 1,005 $ 1,128 The components of income tax expense (benefit) for the years ended December 31 were as follows. Table 8.14.3 INCOME TAX EXPENSE COMPONENTS (Dollars in millions) 2025 2024 2023 Current: Federal $ 201 $ 204 $ 140 State 32 24 28 233 228 168 Deferred: Federal 44 (14) 37 State 5 (3) 7 49 (17) 44 Total: Federal 245 190 177 State 37 21 35 Total income tax expense (benefit) $ 282 $ 211 $ 212 A reconciliation of expected income tax expense (benefit) at the federal statutory rate of 21% for 2025, 2024, and 2023, respectively, to total income tax expense follows. Table 8.14.4 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Premises, Equipment, and Leases Premises and equipment was comprised of the following at December 31, 2025 and 2024. Table 8.5.1 PREMISES & EQUIPMENT (Dollars in millions) December 31, 2025 December 31, 2024 Land $ 162 $ 163 Buildings 575 570 Leasehold improvements 91 88 Furniture, fixtures, and equipment 316 304 Fixed assets held for sale (a) 1 1 Total premises and equipment 1,145 1,126 Less accumulated depreciation and amortization (601) (552) Premises and equipment, net $ 544 $ 574 (a) Primarily comprised of land and buildings. In 2025, FHN recognized $1 million of leased asset impairments, and fixed asset impairments were immaterial. Fixed asset and leased asset impairments were immaterial for 2024 and 2023. Net gains related to the sales of fixed assets were $1 million for 2025, $3 million for 2024, and immaterial for 2023. First Horizon as Lessee FHN has operating, financing, and short-term leases for branch locations, corporate offices and certain equipment. Substantially all of these leases are classified as operating leases. The following table provides details of the classification of FHN's right-of-use assets and lease liabilities included in the Consolidated Balance Sheets. Table 8.5.2 RIGHT-OF-USE ASSETS & LEASE LIABILITIES (Dollars in millions) December 31, 2025 December 31, 2024 Lease right-of-use assets: Classification Operating lease right-of-use assets Other assets $ 321 $ 296 Finance lease right-of-use assets Other assets 2 2 Total lease right-of-us …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Term Borrowings Term borrowings include senior and subordinated borrowings with original maturities greater than one year. The following table presents information pertaining to term borrowings as of December 31, 2025 and 2024. Table 8.10.1 TERM BORROWINGS (Dollars in millions) 2025 2024 First Horizon Bank: Subordinated notes (a) Maturity date May 1, 2030 - 5.75% $ 449 $ 448 Other collateralized borrowings - Maturity date December 22, 2037 4.28% on December 31, 2025 and 4.92% on December 31, 2024 (b) 89 88 Other collateralized borrowings - SBA loans (c) 12 37 First Horizon Corporation: Senior notes Maturity date May 26, 2025 - 4.00% 350 Maturity date March 7, 2031 - 5.51% 497 Junior subordinated debentures (d) Maturity date June 28, 2035 - 5.66% on December 31, 2025 and 6.30% on December 31, 2024 3 3 Maturity date December 15, 2035 - 5.35% on December 31, 2025 and 5.99% on December 31, 2024 19 18 Maturity date March 15, 2036 - 5.38% on December 31, 2025 and 6.02% on December 31, 2024 10 9 Maturity date March 15, 2036 - 5.52% on December 31, 2025 and 6.16% on December 31, 2024 12 12 Maturity date June 30, 2036 - 5.27% on December 31, 2025 and 5.91% on December 31, 2024 28 28 Maturity date July 7, 2036 - 5.72% on December 31, 2025 and 6.47% on December 31, 2024 19 19 Maturity date June 15, 2037 - 5.63% on December 31, 2025 and 6.27% on December 31, 2024 53 53 Maturity date September 6, 2037 - 5.43% on December 31, 2025 and 6.14% on December 31, 2024 9 9 Tax Credit Investment Su …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"Summary of Accounting Changes ASU 2023-09 In December 2023, the FASB issued ASU 2023-09, ""Improvements to Income Tax Disclosures"" to enhance transparency and decision usefulness of income tax disclosures. The provisions of this ASU require disaggregated information about a reporting entity's effective tax rate reconciliation in both percentages and reporting currency amounts. Certain categories of reconciling items are required by the ASU with additional categories required if a specified quantitative threshold is met. Reporting entities are also required to provide a qualitative discussion of the primary state and local jurisdictions for income taxes and the type of reconciling categories. ASU 2023-09 also requires disaggregation of income taxes paid by jurisdiction. For public business entities, ASU 2023-09 was effective for annual periods beginning after December 15, 2024. FHN adopted ASU 2023-09 as of December 31, 2025 and its requirements have been applied retrospectively to all periods presented in Note 14 - Income Taxes. Accounting Changes Issued But Not Currently Effective ASU 2024-03 In November 2024, the FASB issued ASU 2024-03, ""Disaggregation of Income Statement Expenses"" that requires tabular disclosure, on an annual and interim basis, of additional disaggregated information about prescribed expense categories if they are present in any expense caption on the face of the income statement within continuing operations. The prescribed categories applicable to F …

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Retirement Plans and Other Employee Benefits Pension Plan FHN sponsors a noncontributory, qualified defined benefit pension plan to employees hired or re-hired on or before September 1, 2007. Pension benefits are based on years of service, average compensation near retirement or other termination, and estimated Social Security benefits at age 65. Benefits under the plan are frozen so that years of service and compensation changes after 2012 do not affect the benefit owed. Minimum contributions are based upon actuarially determined amounts necessary to fund the total benefit obligation. Decisions to contribute to the plan are based upon pension funding requirements under the Pension Protection Act, the maximum amount deductible under the Internal Revenue Code, the actual performance of plan assets, and trends in the regulatory environment. FHN made no contributions to the qualified pension plan in 2025, 2024, and 2023. Management does not currently anticipate that FHN will make a contribution to the qualified pension plan in 2026. FHN also maintains non-qualified plans including a supplemental retirement plan that covers certain employees whose benefits under the qualified pension plan have been limited by tax rules. These other non-qualified plans are unfunded, and contributions to these plans cover all benefits paid under the non-qualified plans. Payments made under the non-qualified plans were $5 million for 2025, $4 million for 2024, and $6 million for 2023. FHN anticipate …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"Business Segment Information During 2024, FHN reorganized its internal management structure and, accordingly, reclassified its reportable business segments. Prior to the 2024 reclassification, FHN's reportable segments were: (1) Regional Banking, (2) Specialty Banking, and (3) Corporate. As a result of the 2024 reclassification, FHN revised its reportable segments as described below. Segment information for prior periods has been reclassified to conform to the current period presentation. FHN's operating segments are composed of the following: Commercial, Consumer & Wealth segment offers financial products and services, including traditional lending and deposit taking, to commercial and consumer clients primarily in the southern U.S. and other selected markets. Commercial, Consumer & Wealth also consists of lines of business that deliver product offerings and services with niche industry knowledge including asset-based lending, commercial real estate, equipment finance/leasing, energy, international banking, healthcare, and transportation and logistics. Additionally, Commercial, Consumer & Wealth provides investment, wealth management, financial planning, trust and asset management services for consumer clients as well as delivering treasury management solutions, loan syndications, and corporate banking services. Wholesale segment consists of lines of business that deliver product offerings and services with differentiated industry knowledge. Wholesales lines of …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Significant Accounting Policies Basis of Accounting The consolidated financial statements of FHN, including its subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America and follow general practices within the industries in which it operates. This preparation requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions are based on information available as of the date of the financial statements and could differ from actual results. Principles of Consolidation The consolidated financial statements include the accounts of FHN and other entities in which it has a controlling financial interest. Variable interest entities for which FHN or a subsidiary has been determined to be the primary beneficiary are also consolidated. Affiliates for which FHN is not considered the primary beneficiary and in which FHN does not have a controlling financial interest are accounted for under the equity method. These investments are included in other assets, and FHNs proportionate share of income or loss is included in noninterest income. All significant intercompany transactions and balances have been eliminated. Revenues Revenue is recognized when the performance obligations under the terms of a contract with a client are satisfied in an amount that reflects the consideration to which FHN expects to be entitled. FHN der …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Contingencies and Other Disclosures Contingencies Contingent Liabilities Overview Contingent liabilities arise in the ordinary course of business. Often, they are related to lawsuits, arbitration, mediation, and other forms of litigation. Various litigation matters currently are threatened or pending against FHN and its subsidiaries. Also, FHN at times receives requests for information, subpoenas, or other inquiries from federal, state, and local regulators, from other government authorities, and from other parties concerning various matters relating to FHNs current or former businesses. Certain matters of that sort are pending at most times, and FHN generally cooperates when those matters arise. Pending and threatened litigation matters sometimes are settled by the parties, and sometimes pending matters are resolved in court or before an arbitrator, or are withdrawn. Regardless of the manner of resolution, frequently the most significant changes in status of a matter occur over a short time period, often following a lengthy period of little substantive activity. In view of the inherent difficulty of predicting the outcome of these matters, particularly where the claimants seek very large or indeterminate damages, or where the cases present novel legal theories or involve a large number of parties, or where claims or other actions may be possible but have not been brought, FHN cannot reasonably determine what the eventual outcome of the matters will be, what the timing of the …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets Goodwill The following is a summary of goodwill by reportable segment included in the Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024. GOODWILL (Dollars in millions) Commercial, Consumer & Wealth Wholesale Total December 31, 2023 (a) $ 1,217 $ 293 $ 1,510 Additions December 31, 2024 $ 1,217 $ 293 $ 1,510 Additions September 30, 2025 $ 1,217 $ 293 $ 1,510 (a) FHN reorganized its management reporting structure and reallocated goodwill in its segments and reporting units during the fourth quarter of 2024. Prior periods have been revised to reflect this reallocation. FHN performed the required annual goodwill impairment test as of October 1, 2024. The annual impairment test did not indicate impairment in any of FHNs reporting units as of the testing date. Following the testing date, management evaluated the events and circumstances that could indicate that goodwill might be impaired and concluded that it is not more likely than not that goodwill was impaired. If there are any triggering events between annual evaluations, management will evaluate whether an interim impairment analysis is warranted. FHN is currently in the process of performing its annual impairment analysis as of October 1, 2025. Accounting estimates and assumptions were made about FHN's future performance and cash flows, as well as other prevailing market factors (e.g., interest rates, economic trends, etc.) when determining fair value as part of …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"ASU 2023-07 In November 2023, the FASB issued ASU 2023-07, ""Improvements to Reportable Segment Disclosures"" that requires public entities to provide disclosures of significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment's profit or loss and assets that are currently required annually. The ASU requires a public entity to disclose, for each reportable segment, the significant expense categories and amounts that are regularly provided to the chief operating decision-maker (""CODM"") and included in each reported measure of a segment's profit or loss. ASU 2023-07 also requires disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and for interim periods beginning after December 15, 2024. FHN adopted ASU 2023-07 as of December 31, 2024 and its requirements have been applied retrospectively to all periods presented in Note 12 Business Segment Information. Accounting Changes Issued But Not Currently Effective ASU 2023-09 In December 2023, the FASB issued ASU 2023-09, ""Improvements to Income Tax Disclosures"" to enhance transparency and decision usefulness of income tax disclosures. The provisions of this ASU require disaggregated information abou …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Retirement Plans FHN sponsors a noncontributory, qualified defined benefit pension plan to associates hired or rehired on or before September 1, 2007. Pension benefits are based on years of service, average compensation near retirement or other termination, and estimated social security benefits at age 65. Benefits under the plan are frozen so that years of service and compensation changes after 2012 do not affect the benefit owed. Minimum contributions are based upon actuarially determined amounts necessary to fund the total benefit obligation. Decisions to contribute to the plan are based upon pension funding requirements under the Pension Protection Act, the maximum amount deductible under the Internal Revenue Code, the actual performance of plan assets, and trends in the regulatory environment. FHN made no contributions to the qualified pension plan in 2024. Management does not currently anticipate that FHN will make a contribution to the qualified pension plan in 2025. FHN also maintains non-qualified plans, including a supplemental retirement plan that covers certain associates whose benefits under the qualified pension plan have been limited by tax rules. These other non-qualified plans are unfunded, and contributions to these plans cover all benefits paid under the non-qualified plans. Payments made under the non-qualified plans were $4 million for 2024. FHN anticipates making benefit payments under the non-qualified plans of $5 million in 2025. Service cost is includ …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"Business Segment Information During fourth quarter 2024, FHN reorganized its internal management structure and, accordingly, reclassified its reportable business segments. Prior to the 2024 reclassification, FHN's reportable segments were: (1) Regional Banking, (2) Specialty Banking, and (3) Corporate. As a result of the 2024 reclassification, FHN revised its reportable segments as described below. Segment information for periods prior to fourth quarter 2024 has been reclassified to conform to the current period presentation. FHN's operating segments are composed of the following: Commercial, Consumer & Wealth segment offers financial products and services, including traditional lending and deposit taking, to commercial and consumer clients primarily in the southern U.S. and other selected markets. Commercial, Consumer & Wealth also consists of lines of business that deliver product offerings and services with niche industry knowledge including asset-based lending, commercial real estate, equipment finance/leasing, energy, international banking, healthcare, and transportation and logistics. Additionally, Commercial, Consumer & Wealth provides investment, wealth management, financial planning, trust and asset management services for consumer clients as well as delivering treasury management solutions, loan syndications, and corporate banking services. Wholesale segment consists of lines of business that deliver product offerings and services with differentiated in …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing