FIRST HORIZON CORP

Significant Events and Transactions

During the third quarter of 2026, as part of a balance sheet repositioning strategy, FHN decided to pursue a sale of approximately $4.5 billion of lower-yielding consumer mortgages from its loan portfolio. These loans were reclassified and presented within loans held for sale. After consideration of valuation adjustments, the net amount

recognized in loans held for sale was $4.0 billion as of September 30, 2026. An estimated loss on sale of $473 million was recognized in the third quarter. The transaction closed in October 2026 with no significant change to the loan portfolio valuation.

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.2.28.

(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).

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

Table of Contents

Third Quarter 2026 Financial Performance Review

Third Quarter 2026 Highlights

FHN reported third quarter 2026 net loss available to common shareholders of $94 million, or $0.20 loss per diluted share, compared to net income available to common shareholders of $254 million, or $0.50 earnings per diluted share, in third quarter 2025.

Net interest income increased $9 million compared to third quarter 2025, largely driven by lower funding costs and commercial loan growth, partially offset by lower loan yields.

Provision for credit losses was a benefit of $25 million for third quarter 2026 compared to a benefit of $5 million for third quarter 2025, largely reflecting a $45 million benefit recognized from the allowance reversal related to the pending sale of select mortgage loans. Net charge-offs were $36 million, or 22 basis points, compared to $26 million, or 17 basis points, in third quarter 2025.

Noninterest income decreased $491 million, resulting in a noninterest loss of $276 million for third quarter 2026, compared to noninterest income of $215 million for third quarter 2025, primarily due to a $473 million loss related to the pending sale of select mortgage loans.

Compared with third quarter 2025, noninterest expense of $529 million decreased $21 million, largely attributable to lower contributions expense resulting from a $20 million contribution to the First Horizon Foundation in third quarter 2025.

Year-to-Date and Period End Highlights

For the nine months ended September 30, 2026, net income available to common shareholders was $424 million, or $0.88 per diluted share, compared to $699 million, or $1.36 per diluted share, for the nine months ended September 30, 2025.

Net interest income increased $80 million, largely driven by lower funding costs and commercial loan growth, partially offset by lower loan yields.

Provision for credit losses of $5 million decreased $60 million for the year-to-date period of 2026 compared to the same period of 2025, largely reflecting a $45 million benefit recognized from the allowance reversal related to the pending sale of select mortgage loans. Net charge-offs were $97 million for the year-to-date period of 2026 compared to $89 million for the same period of 2025. Nonperforming loans of $482 million decreased $122 million compared to December 31, 2025, as nonperforming loans in both the C&I and CRE portfolios declined. The ACL to total loans and leases ratio decreased 6 basis points to 1.25% as of September 30, 2026, compared to December 31, 2025, driven in part by the reclassification of approximately $4.5 billion in mortgage loans to held for sale, as well as improvements in certain

macroeconomic factors, continued loan resolutions, and positive grade migration in the CRE portfolio.

Noninterest income for the year-to-date period decreased $456 million, primarily due to a $473 million loss related to the pending sale of select mortgage loans.

Noninterest expense for the year-to-date period increased $35 million, largely attributable to an increase of $32 million in personnel expense and an increase of $20 million in computer software expense, partially offset by a $20 million decrease related to a contribution to the First Horizon Foundation in 2025.

Period-end loans and leases of $59.8 billion decreased $4.3 billion from December 31, 2025. Commercial loans increased $533 million, while consumer loans contracted by $4.9 billion for the year-to-date period, driven by the reclassification of certain mortgage loans to held for sale related to the pending mortgage portfolio sale.

Period-end deposits were $67.7 billion compared to $67.5 billion as of December 31, 2025, as interest-bearing deposits increased $447 million and noninterest-bearing deposits decreased $222 million.

The Common Equity Tier 1 ratio decreased 29 basis points to 10.34% at September 30, 2026, compared to 10.63% at December 31, 2025, largely attributable to the loss associated with the pending sale of certain mortgage loans, common share repurchases, and an increase in risk-weighted assets.

The following portions of this MD&A focus in more detail on the results of operations for thethree and nine months ended September 30, 2026 and September 30, 2025, and on information about FHN's financial condition, loan and lease portfolio, liquidity, funding sources, capital, and other matters.