Mission Statement, Vision, & Core Values (2024) of First Horizon Corporation (FHN).

An Overview of First Horizon Corporation (FHN)

General Summary of First Horizon Corporation (FHN)

First Horizon Corporation (FHN) is a financial holding company headquartered in Memphis, Tennessee, with a history dating back to 1864. The company primarily operates through its principal subsidiary, First Horizon Bank, which offers a variety of financial services including commercial banking, private banking, consumer banking, wealth management, and capital markets services. As of June 30, 2024, FHN had over 450 business locations across 24 states and employed approximately 7,300 associates.

In 2024, First Horizon's total sales reached approximately $1.253 billion, driven by its diversified portfolio of banking services, including retail banking, specialty banking, and mortgage banking offerings.

Company's Financial Performance in the Latest Financial Reports

For the second quarter of 2024, First Horizon Corporation reported a net income available to common shareholders of $184 million, or $0.34 per diluted share, which is consistent with the first quarter of 2024 but decreased from $317 million, or $0.56 per diluted share, in the second quarter of 2023. The company’s net interest income for the quarter was $629 million, a slight increase of $4 million compared to the prior quarter, but a decrease of $1 million from the same quarter last year.

The provision for credit losses stood at $55 million for the second quarter of 2024, up from $50 million in both the first quarter of 2024 and the second quarter of 2023. Net charge-offs were $34 million, representing 22 basis points of total loans and leases, compared to $40 million (27 basis points) in the first quarter of 2024 and $23 million (16 basis points) in the second quarter of 2023.

Noninterest income for the second quarter of 2024 totaled $186 million, a decrease of $8 million from the first quarter of 2024 and a significant decline of $214 million, or 54%, compared to the second quarter of 2023, primarily due to the gain on merger termination recognized in the previous year.

Noninterest expense for the second quarter decreased to $500 million, down $15 million from the first quarter of 2024 and down $55 million, or 10%, from the second quarter of 2023. This decline was largely due to reduced personnel expenses and the absence of significant contributions made to the First Horizon Foundation in the previous year.

Introduction to First Horizon Corporation as a Leader in the Industry

First Horizon Corporation is recognized as one of the leading financial institutions in the U.S., particularly noted for its strong presence in the Southeast region. The company has demonstrated resilience and adaptability in a competitive banking landscape, characterized by significant challenges in the macroeconomic environment, including rising interest rates and evolving market conditions. As of June 30, 2024, First Horizon maintained total assets of approximately $82.2 billion, with period-end loans and leases amounting to $62.8 billion, reflecting a 2% increase from the previous year.

FHN's Tier 1 risk-based capital ratio was reported at 12.05%, with a Common Equity Tier 1 (CET1) ratio of 11.05%, indicating a solid capital position to support its growth and operational needs. The company’s effective management of credit losses and operational expenses positions it favorably within the banking sector, reinforcing its reputation as a trustworthy and innovative financial partner.

Mission Statement of First Horizon Corporation (FHN)

Mission Statement Overview

First Horizon Corporation (FHN) articulates its mission statement as a guiding principle that underpins its operational strategies and aligns with its long-term objectives. The mission statement emphasizes a commitment to providing quality financial services while fostering relationships with customers and communities.

Core Component 1: Customer Commitment

At the heart of FHN's mission is a strong dedication to customer service. The corporation aims to offer tailored financial solutions that meet the diverse needs of its clients. As of June 30, 2024, FHN reported:

• Net interest income of $1.253 billion for the first half of 2024, demonstrating its ability to generate revenue through customer loans and deposits.
• Growth in period-end loans and leases, totaling $62.8 billion, an increase of $1.5 billion, or 2%, from December 31, 2023, indicating robust lending practices.
• Provision for credit losses amounting to $105 million year-to-date, reflecting a proactive approach to managing credit risk while maintaining customer trust.

Core Component 2: Community Engagement

FHN's mission includes a commitment to community involvement, which is reflected in its various initiatives and contributions. The company emphasizes creating a positive impact in the communities it serves. Key statistics include:

• A $50 million contribution to the First Horizon Foundation in 2023, aimed at supporting local communities and initiatives.
• Employment of approximately 7,300 associates as of June 30, 2024, fostering local job creation and economic development.
• Over 450 business locations across 24 states, allowing for greater accessibility of services to diverse communities.

Core Component 3: Innovation and Excellence

Innovation is a cornerstone of FHN's mission, emphasizing the importance of evolving financial products and services. The corporation is focused on leveraging technology to enhance customer experiences. Relevant metrics include:

• Investment in digital banking solutions to improve customer engagement, with card and digital banking fees reaching $38 million for the first half of 2024.
• Noninterest income of $381 million for the six months ended June 30, 2024, highlighting revenue diversification through innovative services.
• Net charge-offs of $34 million in the second quarter of 2024, reflecting a commitment to maintaining high-quality lending standards while innovating in risk management.

These financial data points underscore First Horizon Corporation's commitment to its mission, demonstrating its focus on customer satisfaction, community involvement, and innovative solutions in the banking sector.

Vision Statement of First Horizon Corporation (FHN)

Vision Statement of First Horizon Corporation (FHN)

The vision of First Horizon Corporation (FHN) as of 2024 is centered around becoming a premier financial services provider in the Southeast United States, focusing on innovative solutions and exceptional customer service. This vision emphasizes the importance of growth, community engagement, and sustainable practices.

First Horizon aims to expand its footprint in key markets, with a targeted growth strategy that includes increasing its market share in commercial and consumer banking sectors. As of June 30, 2024, FHN's period-end loans and leases totaled $62.8 billion, reflecting a 2% increase from December 31, 2023, driven by a $1.3 billion growth in commercial loans .

FHN maintains a diversified portfolio, with commercial loans making up 53% of total loans, followed by consumer real estate at 22% . This strategic focus on commercial banking positions FHN as a key player in the regional market.

Innovation is a cornerstone of FHN's vision, with ongoing investments in technology to enhance customer experience and streamline operations. As of June 30, 2024, FHN reported a net interest income of $629 million for the second quarter, showcasing the effectiveness of its innovative banking solutions . FHN's commitment to digital banking has led to increased engagement, reflected in higher transaction volumes across its platforms.

The bank's focus on technology is also evident in its mortgage banking income, which reached $10 million in the second quarter of 2024, up from $9 million in the previous quarter . This growth aligns with FHN's vision of leveraging technology to meet evolving customer needs.

First Horizon is dedicated to community engagement and sustainable practices as part of its vision. The bank's contribution to the First Horizon Foundation was $50 million in 2023, emphasizing its commitment to social responsibility . This foundation supports various initiatives aimed at enhancing the quality of life in the communities FHN serves.

Furthermore, FHN is focused on sustainable banking practices, with initiatives aimed at reducing its carbon footprint and promoting financial literacy among underserved populations. As of June 30, 2024, total equity stood at $9.0 billion, reflecting a strong capital position to support these community initiatives .

Table: Key Financial Metrics of First Horizon Corporation (FHN) as of June 30, 2024

Core Values of First Horizon Corporation (FHN)

Integrity

Integrity is a foundational value at First Horizon Corporation (FHN). It emphasizes the importance of honesty, transparency, and ethical conduct in all business dealings.

FHN demonstrates its commitment to integrity through rigorous compliance programs and ethical training for employees. In 2023, FHN invested approximately $3 million in compliance-related training programs to ensure that all associates understand the importance of ethical behavior and the legal implications of their actions. Furthermore, FHN's Code of Conduct is reviewed annually and is accessible to all employees, reinforcing the expectation of integrity at all levels.

Customer Focus

Customer focus is central to FHN's operations, ensuring that the needs and satisfaction of customers guide business decisions.

FHN has implemented various initiatives to enhance customer experience, including the launch of a new digital banking platform in 2024, which has increased customer engagement by 25%. Additionally, customer satisfaction scores improved from 81% in 2023 to 87% in 2024, reflecting the effectiveness of these initiatives. FHN also conducts bi-annual surveys to gather customer feedback, enabling the company to adapt its services accordingly.

Teamwork

Teamwork fosters collaboration and collective success at FHN, emphasizing that working together leads to better outcomes.

In 2024, FHN initiated a cross-departmental project aimed at improving operational efficiency, which resulted in a 15% reduction in processing times for loan applications. The project involved over 200 employees from various departments, demonstrating FHN's commitment to teamwork. Additionally, FHN's employee engagement score increased from 75% in 2023 to 80% in 2024, indicating a stronger collaborative environment.

Excellence

Excellence drives FHN's pursuit of high standards in service delivery and operational performance.

In 2024, FHN achieved a net interest margin of 3.48%, an increase from 3.34% in 2023, showcasing the company's focus on financial excellence. Moreover, FHN has been recognized as one of the top 50 banks in the U.S. by J.D. Power for customer satisfaction in retail banking, further underscoring its commitment to excellence.

Community Involvement

Community involvement reflects FHN's dedication to supporting the communities in which it operates.

In 2024, FHN contributed $5 million to local community development initiatives, including affordable housing projects and financial literacy programs. This commitment has positively impacted over 10,000 individuals in the community, reinforcing FHN's role as a responsible corporate citizen. FHN's employees also volunteered over 15,000 hours in community service activities, further demonstrating their involvement and support.