FIRST HORIZON CORP

Significant Events and Transactions

On March 12, 2026, FHN issued 4,000 shares of Series H Preferred Stock with an aggregate liquidation preference of $400 million. Dividends on the Series H Preferred Stock, if declared, accrue and are payable quarterly, in arrears, at a rate of 6.75% per annum. For the issuance, FHN issued depositary shares, each of which represents a fractional ownership interest in a share of FHN's preferred stock. The Series H Preferred Stock qualifies as Tier 1 capital. For more information, see Note 7 — Preferred Stock in the

Consolidated Financial Statements in Part I, Item 1 of this report.

On May 1, 2026, FHN redeemed all outstanding shares of its Series C Preferred Stock with a carrying value of $59 million. Prior to the redemption, the Series C Preferred Stock qualified as Tier 1 capital. For more information, see Note 17 — Subsequent Events in the Consolidated Financial Statements in Part I, Item 1 of this report.

Financial Performance Summary

Table I.2.1

SELECTED FINANCIAL DATA

(a) Represents a non-GAAP measure which is reconciled in the non-GAAP to GAAP reconciliation in Table I.2.25.

PART I, ITEM 2. MANAGEMENT'S DISCUSSION & ANALYSIS (MD&A)

Table of Contents

(b) Calculated using annualized net income divided by average assets.

(c) Calculated using annualized net income available to common shareholders divided by average common equity.

(d) Calculated using annualized net income available to common shareholders divided by average tangible common equity.

(e) Net interest margin is computed using total net interest income adjusted to an FTE basis assuming a statutory federal income tax rate of 21% and, where applicable, state income taxes.

(f) Ratio is noninterest income excluding securities gains (losses) to total revenue excluding securities gains (losses).

(g) Ratio is noninterest expense to total revenue excluding securities gains (losses).

First Quarter 2026 Financial Performance Review

FHN reported first quarter 2026 net income available to common shareholders of $257 million, or $0.53 per diluted share, compared to $213 million, or $0.41 per diluted share, in first quarter 2025.

Net interest income increased $36 million compared to first quarter 2025, largely driven by lower interest-bearing deposit costs, partially offset by lower loan yields.

Provision for credit losses was $15 million for first quarter 2026 compared to $40 million for first quarter 2025. Net charge-offs were $28 million, or 18 basis points, compared to $29 million, or 19 basis points, in first quarter 2025.

Noninterest income of $195 million for first quarter 2026 increased $14 million compared to first quarter 2025, largely driven by higher fixed income revenues of $4 million and higher other service charges and fees of $4 million, along with increases of $3 million in brokerage, management fees and commissions and $3 million in deposit transactions and cash management fees.

Compared with first quarter 2025, noninterest expense of $505 million increased $18 million, largely driven by a $10 million increase in personnel expenses, tied to higher salaries and benefits expense from increased associate headcount, along with higher incentive-based compensation which was offset by lower equity based compensation. Additionally, computer software expense increased $6 million compared to first quarter 2025.

Period-end loans and leases of $64.4 billion increased $221 million from December 31, 2025. Commercial loans increased $419 million, driven by an increase of $562 million in the C&I portfolio, partially offset by a $143 million decline in the CRE portfolio. Consumer loans contracted by $198 million for the year-to-date period.

Period-end deposits were $66.5 billion compared to $67.5 billion as of December 31, 2025, as interest-bearing deposits decreased $1.1 billion and noninterest-bearing deposits increased $87 million.

The Common Equity Tier 1 ratio decreased 10 basis points to 10.53% at March 31, 2026 compared to 10.63% at December 31, 2025, as capital was deployed into loan growth and share repurchases. The Tier 1 risk-based capital and total risk-based capital ratios increased to 11.94% and 13.74% at March 31, 2026, respectively, compared to 11.51% and 13.35% at December 31, 2025, respectively, driven by the $400 million Series H Preferred Stock issuance in March 2026.

The following portions of this MD&A focus in more detail on the results of operations for thethree months ended March 31, 2026 and March 31, 2025, and on information about FHN's financial condition, loan and lease portfolio, liquidity, funding sources, capital, and other matters.