FIRST HORIZON CORP

COMPENSATION DISCUSSION & ANALYSIS (CD&A)

•Noninterest expense increased by 1.9% (or $39 million), to $2,074 million for 2025, driven largely by higher variable compensation due to revenue growth within the fixed income business, especially during the latter half of the year, and an increased contribution to the First Horizon Foundation.

•Return on tangible common equity (ROTCE) increased significantly, expanding to 14.0% in 2025 from 11.0% in 2024, an increase of 27.5%. Pretax net income (PTI) also increased in 2025, rising 27.4% to $1,281 million. Both increases were driven by the same factors mentioned above, particularly for net interest income and noninterest income.

•Our non-performing asset (NPA) and net charge off (NCO) ratios remained comparable to 2024, at 0.94% and 0.19%, respectively, despite the increased economic uncertainty that marked 2025.

•Our efficiency ratio in 2025 was 60.7%, lower than 2024's 62.1%. The higher efficiency ratio for 2024 was driven significantly by the fourth quarter 2024 investment portfolio repositioning losses mentioned above.