First Tennessee Bank and Capital Bank commit nearly $4 Billion to broaden access to financial resources in underserved communities in Southeast

First Tennessee Bank and Capital Bank, members of the First Horizon National Corp. (NYSE:FHN) family of companies, today announced a five-year, $3.95 billion community benefit plan to increase access to financial resources within low- to moderate-income (LMI) communities in Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, Texas, and Virginia.

The plan includes mortgage and small business lending, community development lending and investments, philanthropy, and spending with minority-owned suppliers and marketing firms. It also includes innovative methods to increase the convenience and physical access to financial services in low- to moderate-income communities.

“Our company is dedicated to supporting the success of underserved individuals and strengthening communities across our footprint,” said Bryan Jordan, chairman and CEO of First Horizon National Corp. “We believe our new $4 billion investment will take our longstanding community commitment to the next level by spurring growth and sustainable economic development.”

The community benefits plan, which is an agreement with the National Community Reinvestment Coalition (NCRC) and its community-based members across the Southeast, will run from 2018 to 2022.

“First Tennessee Bank and Capital Bank have been actively engaged in meaningful conversations with our members to ensure that they are well positioned to meet the needs of underserved communities,” said NCRC president and CEO John Taylor. “We very much appreciate the strong collaboration demonstrated by the executive leadership of First Tennessee and Capital Bank.”

The plan includes the following priorities and targets:

• Increasing home ownership: Fund $515 million in home purchase and rehabilitation mortgage lending to low- to moderate-income individuals and communities and to people of color and communities.
• Building small business: Fund $1.9 billion in small business lending to businesses in low- to moderate-income areas and businesses with less than $1 million in gross annual revenue.
• Fostering community development: Fund $1.5 billion in community development and multi-family lending and investments.
• Strengthening communities: Fund $40 million in grants and philanthropy, including supporting workforce development, small business, housing counseling, Community Development Corporations (CDC), Community Development Financial Institutions (CDFI), and funding financial literacy and education programs for youth, adults, and small business entrepreneurs.
• Supporting supplier diversity: Devote 3 to 6 percent of the bank’s supplier spending to minority-owned businesses.
• Partnering with minority-owned marketing firms: Earmark a portion of the bank’s marketing budget to minority-owned firms.

Regional and national leaders applaud the agreement:
“First Tennessee and Capital Bank in good faith have developed a community benefits plan that is meaningful and impactful. Reinvestment Partners looks forward to working with the bank as a leader in North Carolina,” Peter Skillern, Executive Director, Reinvestment Partners.

“Considering the very significant needs of this region and the First Tennessee and Capital Bank markets, this agreement and the investments in it are a great down payment on meeting those needs,” Irvin Henderson, Chairman, National Trust Community Investment Corporation.

“HEED looks forward to working with First Tennessee on creating neighborhoods of choice and a just economy in their Mississippi markets,” Charles Harris, Executive Director, Housing Education & Economic Development.

“The Memphis Housing Authority is excited to support the First Tennessee Community Benefit Plan. The populations we serve in Memphis are by definition low-income households who have not always had the ability to benefit from a true banking relationship. The Memphis Housing Authority feels this plan will provide them access to services that will build their self-sufficiency, independence from government assistance and improve their future,” Marcia Lewis, Executive Director, Memphis Housing Authority.

“SMASH is pleased to see that First Tennessee and Capital Bank have agreed to a CBA that will strengthen investment in low-income communities of color. We look forward to working with them to make sure that this capital is used for equitable development, not gentrification” Adrian Madriz, Project Lead, SMASH Inc.

“The Community Reinvestment Alliance of South Florida was very pleased to participate in this process with NCRC, First Tennessee and Capital Bank. We look forward to working together to continue improving our community,” Cornell Crews Jr., Executive Director, Community Reinvestment Alliance of South Florida.

“I’m delighted about the commitments made by First Tennessee Bank and Capital Bank. Incremental progress that addresses the divide between business community reinvestment and consumer needs is essential for the recovery of all economies. Durham Regional Financial Center looks forward to the social and economic benefits made available to our residents, businesses and minority institutions in Durham and surrounding counties,” Glyndola Massenburg-Beasley, President Durham Regional Financial Center.

“Chattanooga Organized for Action is delighted to see these concrete steps and partnership agreed to by First Tennessee. This is the first Community Benefits Agreement that applies to the Chattanooga area, and we hope it becomes a model of development and investment as our city grows. NCRC’s expertise has been invaluable, and they’ve helped grassroots organizations like ours learn how to be included in the process of community reinvestment,” Michael Gilliland, Board Chair, Chattanooga Organized for Action, Inc.

“First Tennessee Bank has been our staunch supporter for many years to provide financial dignity and empowerment to all people. For example, through the bank’s partnership with Operation HOPE, it has set up HOPE Inside locations in bank branches, and senior executives have donated their time to work with us side-by-side. CEO Bryan Jordan has become a member of our executive board of directors, vice president Steve Swain is a member of our advisory board of directors, and senior vice president, David Fehrenbacher has joined our Midwestern board of directors. Now, with this nearly $4 billion commitment to helping the underserved, First Tennessee continues to pave the way for more people to achieve their financial goals.” John Hope Bryant, CEO and Founder, Operation HOPE.

About NCRC
NCRC and its grassroots member organizations create opportunities for people to build wealth. We work with community leaders, policymakers and financial institutions to champion fairness in banking, housing and business development.

About First Tennessee and Capital Bank
Our First Tennessee and Capital Bank brands have the largest deposit market share in Tennessee, operate more than 300 branches across the southeast U.S., and have one of the highest customer retention rates of any bank in the country. We have been ranked by American Banker as No. 5 among the Top 10 Most Reputable U.S. Banks. We were founded in 1864, have the 14th oldest national bank charter in the country. Our FTB Advisors wealth management group has over 300 financial advisors and about $30 billion in assets under administration. FTN Financial, with 28 offices across the U.S., is a capital markets industry leader in fixed income sales, trading and strategies for institutional customers in the U.S. and abroad. First Tennessee, FTB Advisors, and FTN Financial are part of First Horizon National Corp. (NYSE:FHN). We have been recognized as one of the nation’s best employers by Working Mother and American Banker magazines and the National Association for Female Executives. More information is available at


First Horizon Investor Relations, Aarti Bowman, (901) 523-4017
First Horizon Media Relations, James Dowd, (901) 523-4305

SUMMARY of the First Tennessee Bank / Capital Bank Community Benefits Agreement with the National Community Reinvestment Coalition
First Tennessee Bank will lend or invest $3.95 billion to LMI borrowers and in LMI communities over a five-year period from 2018 to 2022. This commitment comes out to 10 percent of First Tennessee’s post Capital Bank merger assets, or 13 percent of its deposits.
Summary includes information about the community benefits agreement with NCRC that is applicable to First Tennessee Bank and Capital Bank.

Mortgage Lending to Low- to Moderate-Income Borrowers, People of Color, Communities
Community Benefits Commitment: $515 million over 5 years

First Tennessee Bank will adopt a mortgage lending goal for LMI borrowers, people of color and neighborhoods of $515 million. First Tennessee has adopted Capital Bank’s existing portfolio of affordable home loan product that will help first time and current homebuyers with an affordable entry point to homeownership. First Tennessee will also create a marketing budget to better reach LMI borrowers and communities and help ensure awareness of this loan product. The bank will also coordinate with and support through its Community Development Fund and the First Tennessee Foundation to fund partnerships with CDCs, CDFIs, non-profit organizations and credit counseling groups to support home purchase counseling efforts for LMI borrowers in the bank’s assessment areas.

Small Business Lending to Small Businesses & Businesses in Low- to Moderate-Income Communities
Community Benefits Commitment: $1.9 billion over 5 years

First Tennessee Bank’s lending goal for small businesses and businesses in LMI neighborhoods is $1.9 billion. The bank will create and/or work with an external financial partner to offer small business loans in amounts less than $50,000. First Tennessee will also formalize referral relationships to CDFIs for businesses denied a loan by the bank or not yet ready for traditional bank financing. First Tennessee will also expand its complimentary financial education and business planning program it offers to existing and prospective small business owners and entrepreneurs.

Community Development Lending and Investment (CDLI)
Community Benefits Commitment: $1.5 billion over 5 years

First Tennessee Bank will devote $1.5 billion to community development and multi-family lending and investments. This will include increasing loans to and/or equity/equity equivalent investments in CDCs, CDFIs, Small Business Development Investment Companies, Minority Depository Institutions, affordable housing developers and other non-profit organizations. The bank will also support causes that address neighborhood and community blight, improve infrastructure, workforce development, the digital divide, rural areas, fair housing and healthcare providers in LMI neighborhoods.

Community Benefits Commitment: $40 million over 5 years

First Tennessee Bank will award $40 million in grants over the next five years. Philanthropic giving will focus on causes and organizations including CDCs and CDFIs that support LMI individuals, people of color, neighborhoods and small businesses with such topics as: credit and money management, homeownership counseling, fair lending, youth and adult financial literacy, small business education, development and management, workforce development, African American home ownership and the digital divide.

Increased Access to Financial Products and Services
In response to the growing demand and consumer preference for access to financial products and services outside of traditional branches, First Tennessee is developing and exploring strategies and techniques to supplement the role of its branches and address these demands. This plan will include, but not be limited to, the use of innovative technology and techniques that enable bankers to meet with and provide financial advice, products and services to existing and prospective customers, including those in LMI and people of color neighborhoods, where they work, live, worship and play.

Other Commitments
First Tennessee Bank will devote 3 percent to 6 percent of the bank’s supplier spend to minority-owned firms.