First Horizon

To deliver superior client experiences and profitable growth by being the most trusted bank in the Southeast.

First Horizon SWOT Analysis

Updated: October 4, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for First Horizon was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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The First Horizon SWOT analysis reveals a resilient regional bank at a strategic crossroads. Its core strengths lie in a fortified balance sheet and deep-rooted client relationships within the high-growth Southeast market. However, significant weaknesses in operational efficiency and a dependency on interest income create vulnerabilities. The termination of the TD merger presents both a challenge to define a standalone growth path and an opportunity to use its strong capital position. To thrive, First Horizon must aggressively tackle its cost structure, accelerate its digital offerings to fend off larger banks and fintechs, and leverage its market position to capture the region's demographic tailwinds. The path forward requires disciplined execution on both efficiency and targeted growth to deliver sustainable shareholder value.

Truist Financial Regions Financial Fifth Third Bancorp Synovus Financial PNC Financial Services

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To deliver superior client experiences and profitable growth by being the most trusted bank in the Southeast.

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Strengths

LIQUIDITY: Strong balance sheet and capital ratios post-TD deal termination
MARKET: Deep roots and #4 deposit share in high-growth state of Tennessee
RELATIONSHIPS: Strong commercial banking ties driving low-cost core deposits
LEADERSHIP: Experienced management team that navigated merger uncertainty
DIVERSIFICATION: Balanced loan portfolio across commercial, CRE, and consumer

Weaknesses

EFFICIENCY: Higher efficiency ratio (~68%) vs. top-tier peers, hurts profits
SCALE: Lack of scale vs. money-center banks limits tech investment capacity
REVENUE: Pressure on Net Interest Margin from high interest rate environment
STRATEGY: Lingering market uncertainty about standalone strategy after TD deal
DEPENDENCE: Heavy reliance on spread income (NII) vs. non-interest income

Opportunities

GROWTH: Capitalizing on strong economic and population growth in Southeast
WEALTH: Expanding wealth management services for affluent SE client base
FINTECH: Partnering with fintechs to enhance digital offerings without capex
M&A: Potential for smaller, bolt-on acquisitions to gain share or talent
RATES: Potential for NIM expansion if interest rates stabilize or decline

Threats

COMPETITION: Aggressive deposit pricing from online banks and larger rivals
REGULATION: Increased capital requirements and scrutiny for banks >$100B
ECONOMY: A regional or national recession increasing credit losses/defaults
DEPOSITS: Continued deposit outflows to higher-yielding money market funds
CYBER: Escalating sophistication of cybersecurity threats against financials

Key Priorities

PROFITABILITY: Defend and expand Net Interest Margin amid intense competition
EFFICIENCY: Drive operational efficiency to improve profitability & fund growth
GROWTH: Capitalize on Southeast market growth by deepening client relations
DIGITAL: Accelerate digital transformation to meet client expectations

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First Horizon OKR

Updated: October 4, 2025 • 2025-Q4 Analysis

The First Horizon OKR plan is a focused and pragmatic blueprint for navigating the current environment. It rightly prioritizes the foundational drivers of banking success: profitability (Defend Margins) and cost control (Boost Efficiency). These objectives create the fuel to invest in the future-facing priorities of market expansion (Win Southeast) and digital transformation (Go Digital). The key results are specific, measurable, and directly address the weaknesses and threats identified in the SWOT. This is not a plan for radical reinvention but one for disciplined execution, building a stronger, more efficient bank capable of compounding growth in its core markets. It is a CEO-level plan that balances defense with targeted offense.

Truist Financial Regions Financial Fifth Third Bancorp Synovus Financial PNC Financial Services

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To deliver superior client experiences and profitable growth by being the most trusted bank in the Southeast.

DEFEND MARGINS

Protect and grow profitability in a competitive market.

PRICING: Optimize loan and deposit pricing models to increase our net interest margin by at least 5 basis points.
DEPOSITS: Grow low-cost core operating deposits by $1.5B, reducing reliance on higher-cost funding sources.
FEES: Increase non-interest income contribution to 30% of total revenue by expanding treasury and wealth services.
MIX: Shift our loan portfolio mix towards higher-yield C&I loans, increasing their share of the book by 2%.

BOOST EFFICIENCY

Streamline operations to fund innovation and growth.

AUTOMATION: Automate 10 high-volume manual back-office processes, reducing associated labor hours by 30%.
VENDORS: Consolidate our top 20 vendor contracts to achieve a run-rate cost savings of $15 million annually.
FOOTPRINT: Optimize our branch and office footprint based on traffic data, reducing real estate costs by 5%.
CLOUD: Migrate 25% of on-premise IT infrastructure to the cloud to lower IT operational expenditures.

WIN SOUTHEAST

Deepen our market share in high-growth SE metro areas.

HOUSEHOLDS: Increase the average number of products per retail client from 2.1 to 2.5 via targeted campaigns.
WEALTH: Grow wealth management assets under management (AUM) by 15% by hiring 20 new financial advisors in key markets.
LENDING: Become a top 3 Small Business Administration (SBA) lender by volume in Tennessee, North Carolina, and Florida.
BRAND: Launch a targeted brand campaign in Atlanta and Charlotte, increasing our aided brand awareness by 10%.

GO DIGITAL

Deliver a modern, seamless digital client experience.

ONBOARDING: Reduce the digital account opening time for new customers from an average of 12 minutes to under 5.
ADOPTION: Increase mobile banking active users by 20% and achieve a consistent 4.8+ star rating in app stores.
SELF-SERVICE: Shift 25% of common branch transactions, like deposits and transfers, to our digital channels.
PLATFORM: Launch a new, unified digital banking platform for retail and small business clients with 3 new features.

METRICS

ROTCE: 14%
Efficiency Ratio: <62%
CET1 Ratio: >10.0%

VALUES

Accountability
Adaptability
Integrity
Service
Teamwork

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First Horizon Retrospective

AI-Powered Insights

Claude

Gemini

GPT

First Horizon Q4 2023 and Q1 2024 Earnings Reports & Presentations
First Horizon 2023 10-K Filing
Company Website (firsthorizon.com) for leadership and mission data
Financial data from Yahoo Finance (FHN)
Industry analysis of regional banking in the Southeastern US

Truist Financial Regions Financial Fifth Third Bancorp Synovus Financial PNC Financial Services

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To deliver superior client experiences and profitable growth by being the most trusted bank in the Southeast.

Toggle Theme

What Went Well

DEPOSITS: Successfully stabilized the core deposit base after industry turmoil
CREDIT: Maintained strong and stable credit quality with low net charge-offs
CAPITAL: CET1 capital ratio remains robust, providing strategic flexibility
NII: Beat consensus expectations on Net Interest Income in the last quarter
FEE-INCOME: Solid performance from FHN Financial, diversifying revenue

Not So Well

EXPENSES: Non-interest expenses remain elevated, pressuring efficiency ratio
LOANS: Experienced slower-than-expected loan growth in key commercial segments
NIM: Continued compression in Net Interest Margin from higher funding costs
GUIDANCE: Cautious forward-looking guidance reflects macroeconomic uncertainty

Learnings

PRICING: Deposit pricing discipline is the most critical lever in this environment
EFFICIENCY: Cost control is paramount to protecting profitability amidst NIM pressure
RELATIONSHIPS: Core relationship deposits proved to be sticky and highly valuable
DIVERSIFICATION: Non-interest income provides a crucial buffer to NII volatility

Action Items

COSTS: Aggressively execute on all announced expense reduction initiatives
LENDING: Re-focus lending teams on highest-return relationship opportunities
DEPOSITS: Launch targeted campaigns to attract low-cost operational deposits
DIGITAL: Prioritize digital features that reduce branch traffic and service costs
FEE-INCOME: Identify new opportunities to grow non-interest income streams

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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First Horizon Market

AI-Powered Insights

Claude

Gemini

GPT

First Horizon Q4 2023 and Q1 2024 Earnings Reports & Presentations
First Horizon 2023 10-K Filing
Company Website (firsthorizon.com) for leadership and mission data
Financial data from Yahoo Finance (FHN)
Industry analysis of regional banking in the Southeastern US

Founded: 1864
Market Share: Top 5 deposit share in Tennessee; significant presence in LA, FL, NC
Customer Base: Small to mid-sized businesses, commercial clients, HNW individuals
Category:
Regional Banking
SIC Code: 6021 National Commercial Banks
NAICS Code: 522110 Commercial Banking
Location: Memphis, Tennessee
Zip Code: 38103
Congressional District: TN-9 MEMPHIS
Employees: 7200

Competitors

Truist Financial View Analysis

Regions Financial View Analysis

Fifth Third Bancorp View Analysis

Synovus Financial View Analysis

PNC Financial Services Request Analysis

Products & Services

No products or services data available

Distribution Channels

First Horizon Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

First Horizon Q4 2023 and Q1 2024 Earnings Reports & Presentations
First Horizon 2023 10-K Filing
Company Website (firsthorizon.com) for leadership and mission data
Financial data from Yahoo Finance (FHN)
Industry analysis of regional banking in the Southeastern US

Problem

Access to capital for business growth
Complexity of managing personal wealth
Need for trusted, expert financial advice

Solution

Customized lending and treasury solutions
Personalized wealth management & planning
Full-service retail banking products

Key Metrics

Return on Tangible Common Equity (ROTCE)
Net Interest Margin (NIM)
Efficiency Ratio
Loan and Deposit Growth

Unique

Deep, 160-year history in core markets
Relationship-first service model
In-house fixed income expertise (FHN Fin)

Advantage

Strong brand trust and community presence
Sticky, low-cost core deposit franchise
Entrenched in high-growth SE markets

Channels

Branch network in the Southeast US
Online banking and mobile applications
Relationship managers and financial advisors

Customer Segments

Small and mid-sized businesses (SMBs)
Commercial and corporate clients
High-net-worth individuals and families

Costs

Salaries and employee benefits
Interest expense on deposits and debt
Technology and infrastructure costs
Branch network and real estate expenses

First Horizon Product Market Fit Analysis

Updated: October 4, 2025

First Horizon provides businesses and individuals in the Southeast with comprehensive financial solutions. By combining deep local expertise with sophisticated banking and wealth management services, it acts as a trusted partner, simplifying financial complexity and empowering clients to achieve their most ambitious goals. It's not just banking; it's a strategic relationship for long-term growth and security.

Our main value drivers are trusted advice, local expertise, and comprehensive solutions.

We help you achieve your financial goals with a team that understands your business and community.

We simplify complexity by offering integrated banking, wealth, and capital markets services.

Before State

Fragmented financial accounts and services
Lack of personalized, expert financial advice
Complex access to business growth capital

After State

Consolidated, clear view of financial health
A trusted advisor guiding financial decisions
Strategic capital partner for business expansion

Negative Impacts

Missed financial opportunities and inefficiencies
Suboptimal returns and unmanaged financial risk
Stalled business growth due to capital constraints

Positive Outcomes

Increased personal wealth and financial security
Confident, informed financial decision-making
Accelerated business growth and job creation

Key Metrics

Customer Retention Rates

~95% for core relationship clients

Net Promoter Score (NPS)

Estimated 30-40 (Industry Average)

User Growth Rate

Modest, tied to regional economic growth

Customer Feedback/Reviews

12 reviews on G2 (for FHN Financial)

Repeat Purchase Rates

High, measured by products per household

Requirements

Deep understanding of client's unique goals
Proactive advice and customized solutions
Seamless digital and in-person experiences

Why First Horizon

Dedicated relationship managers for key clients
Integrated digital platform for all services
Local decision-making with market expertise

First Horizon Competitive Advantage

Deep roots and trust built over 160 years
Holistic advice spanning personal and business
National-level expertise with local delivery

Proof Points

Top 5 bank in our home state of Tennessee
Consistently recognized for client service
$XB in loans deployed to local businesses

First Horizon Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

First Horizon Q4 2023 and Q1 2024 Earnings Reports & Presentations
First Horizon 2023 10-K Filing
Company Website (firsthorizon.com) for leadership and mission data
Financial data from Yahoo Finance (FHN)
Industry analysis of regional banking in the Southeastern US

Strategic pillars derived from our vision-focused SWOT analysis

Deepen share in core high-growth MSAs.

Client-centric tech, not tech for tech's sake.

Focus on high-value, relationship-based services.

Streamline for efficiency and resilience.

What You Do

Provides comprehensive banking, wealth management, and capital markets services.

Target Market

Businesses and individuals primarily in the Southeastern United States.

Differentiation

Deep local market knowledge and relationship-based service model.
Specialized FHN Financial division for fixed income expertise.

Revenue Streams

Net interest income from loans and securities.
Noninterest income from fees, wealth management, and capital markets.

First Horizon Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

First Horizon Q4 2023 and Q1 2024 Earnings Reports & Presentations
First Horizon 2023 10-K Filing
Company Website (firsthorizon.com) for leadership and mission data
Financial data from Yahoo Finance (FHN)
Industry analysis of regional banking in the Southeastern US

Company Operations

Organizational Structure: Regional banking model with centralized corporate functions and capital markets.
Supply Chain: Capital sourced from deposits and wholesale funding; deployed as loans.
Tech Patents: Primarily leverages third-party technology; no significant patent portfolio.
Website: https://www.firsthorizon.com/

Top Clients

Board Members

First Horizon Competitive Forces

Threat of New Entry

MEDIUM: High capital and regulatory hurdles deter new full-service banks, but digital-only fintechs can enter niche markets easily.

Supplier Power

MEDIUM: Depositors (suppliers of capital) have power to seek higher yields, but are fragmented. Labor market for talent is competitive.

Buyer Power

MEDIUM: Borrowers have many choices, but switching costs for established commercial relationships can be high, limiting power.

Threat of Substitution

HIGH: Fintechs, neobanks, credit unions, and money market funds offer compelling alternatives for specific banking services.

Competitive Rivalry

HIGH: Intense competition from money-center banks (JPM, BAC), super-regionals (Truist, PNC), and numerous community banks.

Analysis of AI Strategy

Updated: October 4, 2025 • 2025-Q4 Analysis

The First Horizon AI SWOT analysis underscores a critical imperative: leverage AI for efficiency or risk being outmaneuvered. The bank's core strength is its proprietary data, but this asset is shackled by legacy systems and a significant AI talent gap. The most immediate and impactful opportunity lies in applying AI to automate back-office processes, which directly addresses the bank's primary weakness of a high efficiency ratio. This initial focus on cost savings and enhanced risk management can fund the more ambitious, long-term vision of AI-driven hyper-personalization. First Horizon's strategy should be pragmatic, prioritizing partnerships with AI vendors to bridge the talent gap and deliver near-term ROI, thereby building momentum for a more transformative AI-enabled future.

Truist Financial Regions Financial Fifth Third Bancorp Synovus Financial PNC Financial Services

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To deliver superior client experiences and profitable growth by being the most trusted bank in the Southeast.

Strengths

DATA: Rich, proprietary client transaction and behavior data for modeling
TRUST: Existing client trust can be leveraged for AI-powered advice adoption
COMPLIANCE: Strong existing risk management frameworks to govern AI use
CHANNELS: Established distribution network to deploy AI-powered tools

Weaknesses

TALENT: Shortage of in-house AI/ML engineering and data science expertise
SYSTEMS: Legacy core banking systems hinder agile AI integration and data
BUDGET: Limited R&D budget for large-scale AI experimentation vs. big banks
DATA-SILOS: Fragmented data across different business lines and systems

Opportunities

AUTOMATION: AI-driven automation of back-office tasks to lower efficiency ratio
PERSONALIZATION: Hyper-personalize product recommendations and client outreach
RISK: AI models for advanced credit risk scoring and real-time fraud detection
SERVICE: AI-powered chatbots to handle routine customer service inquiries 24/7

Threats

COMPETITION: Fintechs and large banks are deploying AI faster, creating a gap
BIAS: Risk of biased AI models leading to regulatory and reputational damage
SECURITY: AI systems present new attack vectors for sophisticated cyber threats
COST: High cost of implementation and talent acquisition for advanced AI

Key Priorities

EFFICIENCY: Deploy AI to automate core back-office and underwriting processes
RISK: Enhance fraud detection and credit risk models with machine learning
PERSONALIZATION: Leverage client data for AI-powered personalized banking
TALENT: Build or acquire AI talent to accelerate internal capabilities

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First Horizon Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

First Horizon Q4 2023 and Q1 2024 Earnings Reports & Presentations
First Horizon 2023 10-K Filing
Company Website (firsthorizon.com) for leadership and mission data
Financial data from Yahoo Finance (FHN)
Industry analysis of regional banking in the Southeastern US

Profit: $864 million (TTM Net Income)

Market Cap: $8.5 billion

Stock Performance

Annual Report: Available on First Horizon's Investor Relations website

Debt: $3.6 billion in long-term debt

ROI Impact: ROTCE target of 13-15% is key driver of shareholder value

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Market Contender

ICM Index

STRATEGIC ADVISOR ASSESSMENT

First Horizon is a solid regional player with a clear strategy, reflected in its OKRs. However, its ambition is confined to its category, and its growth is constrained by intense competition (high Downside score) and operational inefficiencies. The Iconic Index is balanced but not exceptional, indicating a company focused on disciplined execution rather than disruptive innovation. Achieving its vision is plausible but requires overcoming significant competitive and internal hurdles.

SWOT Factors

Upside: 69.0 Risk: 75.0

OKR Impact

AI Leverage

Top 3 Strategic Levers

Aggressively execute on efficiency and automation initiatives.

Accelerate digital platform development to defend against rivals.

Deepen penetration in high-growth Southeast wealth markets.

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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