Credit deterioration and loan losses
As a commercial and consumer bank, earnings depend on borrower performance and reserve adequacy.
- Scope
- Loan portfolio across commercial, consumer, and mortgage books
- Materiality
- high
First Horizon Corporation
First Horizon Corp. is a Memphis-based financial holding company whose main banking subsidiary, First Horizon Bank, serves commercial, consumer, private banking, wealth, and mortgage clients. It operates a regional banking franchise across the southern and southeastern United States, combining traditional deposit and lending activities with fee businesses such as trust, brokerage, capital markets, and mortgage banking.
28,7 %
+7,2 %
| % | |
|---|---|
| Commercial banking | 40% Business deposits, credit facilities, treasury services, and related banking products for companies and institutions. |
| Consumer and small business banking | 25% Retail deposits, consumer loans, and banking services for households and smaller operating businesses. |
| Wealth, trust, and private banking | 15% Advice, fiduciary, and relationship banking services for affluent individuals and families. |
| Mortgage banking | 10% Mortgage origination, servicing, and related residential real estate finance activities. |
| Capital markets and fixed income | 10% Fee-based advisory, trading, and fixed income services supporting corporate and institutional clients. |
First Horizon serves a mix of commercial borrowers, retail depositors, small businesses, and affluent households...
- Commercial and middle-market clientsprimary
Businesses that buy loans, deposits, treasury, and capital markets support for day-to-day operations and growth.
- Retail consumersprimary
Households that use checking, savings, consumer lending, and branch-based banking services.
- Small businessesprimary
Local operating companies that need deposit accounts, credit lines, and payment services.
- Wealth and private banking clientssecondary
Affluent individuals and families that buy advisory, trust, and relationship banking services.
- Mortgage borrowerssecondary
Homebuyers and homeowners using mortgage origination and related residential lending products.
First Horizon is headquartered in Memphis, Tennessee and operates over 450 business locations in 24 states, with more...
- •Headquartered in Memphis, Tennessee
- •Over 450 business locations across 24 states
- •More than 400 banking centers in 12 states
- •Core markets are in the southern and southeastern U.S.
- •Florida and Gulf Coast exposure increases hurricane sensitivity
First Horizon is focused on running a relationship-driven regional bank with a broad product set across commercial,...
01
Cross-sell across the franchisemedium-term
A broader product mix increases customer retention and fee income while reducing reliance on spread income.
02
Grow in high-population southern marketsmedium-term
Population and economic growth in core markets supports deposit gathering and loan demand.
03
Prepare for higher regulatory requirementsshort-term
Approaching the $100 billion asset tier raises compliance costs and supervisory expectations.
04
Preserve capital and funding flexibilityshort-term
Strong capital ratios support lending capacity, dividends, and resilience in a changing economy.
The main risks are credit quality, regulatory change, and concentration in southern coastal markets that are exposed to...
Hurricane and severe-weather exposure
Many core markets are coastal and economically tied to regions vulnerable to storms.
- Scope
- Florida, Gulf Coast, and southern Atlantic seacoast markets
- Materiality
- high
Regulatory step-up near $100 billion assets
Crossing the threshold can trigger enhanced prudential standards and higher compliance costs.
- Scope
- Capital, liquidity, reporting, and staffing requirements
- Materiality
- high
Capital constraint risk
Minimum capital ratios and buffers can limit dividends, repurchases, and balance-sheet growth.
- Scope
- CET1, Tier 1, total capital, and leverage ratios
- Materiality
- high
Regulatory and litigation risk
Banks face changing rules, enforcement actions, and legal claims that can create volatile expenses.
- Scope
- Banking regulation, privacy, consumer, and commercial disputes
- Materiality
- medium
Allowance for credit losses
Quarterly earnings and balance-sheet reserves
Regulatory capital adjustments and AOCI election
CET1, Tier 1, and total capital ratios
Debt retirement and preferred stock redemption
Interest expense, equity, and capital structure
Fair value estimates
Noninterest income and balance-sheet valuations
: 28.4.2026