First Horizon (FHN) risk factors, FY2024 10-K

Other

1. 01This Item highlights risks that could impact us in material ways by causing future results to differ materially from

Regulatory, Legislative, and Legal Risks

1. 02Traditional Competition Risks
2. 03Traditional Strategic Risks
3. 04We have in place strategies designed to achieve those elements that we believe are significant to us at present. Our challenge is to execute those strategies and adjust them, or adopt new strategies, as conditions change
4. 05companies efficiently in a reasonable amount of time; and
5. 06The IBKC merger in 2020 presented those risks. In fact, the completion of systems integration was delayed several
6. 07We seek to meet these competitive challenges through increased investments in our own digital platforms, and through strategic equity investments, but there can be no assurance that these efforts will be successful
7. 08accept, but value, and which aligns with regulatory and compliance expectations
8. 09To thrive as our industry is disrupted, we will need to continue to embrace some of the attitudes of a

Cybersecurity Risks

1. 10Additional information concerning cybersecurity risks and our management of them, all of which is incorporated into this Item 1A by this reference, appears under the caption Cybersecurity Risk Management beginning on page 91 of our 2024 MD&A (Item 7)
2. 11Risks from Economic Downturns & Changes
3. 12Risks Associated with Monetary Events

Risks Related to Businesses We May Exit

1. 13may result in greater regulatory and/or legislative scrutiny, which may lead to laws or regulations that change or constrain our business or operations. Events that result in damage to our reputation also may increase our litigation risk
2. 14difficult for banks, and for investors, to know when an upturn or downturn in credit loss is merely idiosyncratic or instead portends a major credit cycle change
3. 15The consumer real estate portfolio contains a number of concentrations which affect credit risk assessment of the portfolio

Regulatory, Legislative, & Legal Risks

1. 16ons could further limit the amount of interest or fees we can charge, could further restrict our ability to collect loans or realize on collateral, could affect the terms or profitability of the products and services we offer, and could materially affect us in other ways
2. 17s that are adverse to those of the holders of our existing classes of common or preferred stock
3. 18Banks in the U.S. already operate under privacy-protection laws and rules, but banking industry regulations in this area might be enlarged in response to this concern
4. 19Additional information concerning these risks, which is incorporated into this Item 1A by this reference, appears under the caption Greenhouse Gas (GHG) Reporting Regimes within the section captioned Market Uncertainties and Prospective Trends beginning on page 97 of our 2024 MD&A (Item 7)
5. 20form of technology purchases and implementation, facility closure or renovation costs, and severance costs, while expected benefits typically are realized with some uncertainty in the future
6. 21Despite our efforts, our costs could rise due to adverse structural changes, market shifts, or inflationary pressures. For example: in 2021 and 2022, compensation costs rose markedly due to high-demand/low-supply circumstances beyond our control
7. 22landfall in a relatively unpopulated area. Now, the chances of directly hitting a population center are much higher, the average population in that center is much higher, and the average value per building is much higher
8. 23State and local building and water-control codes are being revised, but often unevenly and often not retroactive to pre-existing structures and developments. The current transition period could be lengthy
9. 24Additional information concerning these risks, which is incorporated into this Item 1A by this reference, appears under the caption Coastal Market Growth and Rising Costs within the section captioned Market Uncertainties and Prospective Trends beginning on page 97 of our 2024 MD&A (Item 7)
10. 25Liquidity & Funding Risks
11. 26forced to raise interest we pay on our deposits, raising costs appreciably. In a severe case, deposit flight could render the Bank insolvent
12. 27to buy, sell, or hold securities, is subject to revision or withdrawal at any time, and should be evaluated independently of any other rating
13. 28Interest Rate & Yield Curve Risks
14. 29expanding as compared with both the third quarter of 2024 and the fourth quarter of 2023
15. 30Asset Inventories & Market Risks
16. 31Hedging creates certain risks for us, including the risk that the other party to the hedge transaction will fail to
17. 32Pre-2009 Mortgage Business Risks
18. 33Share Owning & Governance Risks
19. 34Also, we are required to provide financial support to the Bank. Accordingly, at any given time a portion of our funds may need to be used for that purpose and therefore would be unavailable for dividends
20. 35former IBKC shareholders common shares representing about 44% of our post-closing outstanding shares