Core Insights - The third quarter earnings season has begun, with analysts expecting a 7.9% increase in earnings per share for S&P 500 companies, marking the ninth consecutive quarter of positive growth but a slowdown from the 12% growth in Q2 [1][2] Financial Institutions Performance - Major banks including JPMorgan Chase, Goldman Sachs, Wells Fargo, Citigroup, and BlackRock reported their quarterly results, with additional reports from Bank of America, Morgan Stanley, and others following [2][4] - Ally Financial reported earnings per share of $1.18, exceeding estimates of $0.96, with revenue of $2.17 billion surpassing expectations of $2.10 billion [7][8] - Truist's net income rose to $1.3 billion, or $1.04 per diluted share, beating analyst estimates of $0.99 per share, with noninterest income increasing 11% to $158 million [9][10] - Comerica's net interest income grew over 7% to $574 million, while noninterest income declined to $264 million due to slower capital markets activity [11][12] - Fifth Third reported net interest income of $1.52 billion, a 7% year-over-year increase, with earnings per share growing 17% to $0.91, surpassing estimates of $0.86 [14][15] - U.S. Bancorp reported net income of $2.00 billion, or $1.22 per share, beating estimates and achieving record revenue of $7.3 billion [22][23] - Charles Schwab's earnings were $1.26 per share, with record revenue of $6.13 billion, a 27% year-over-year increase [24][25] Technology Sector Insights - Taiwan Semiconductor Manufacturing Company (TSMC) reported a 39% year-over-year profit surge in Q3 and raised its 2025 revenue outlook, anticipating mid-30% annual sales growth [27][28] - TSMC's revenue reached approximately $32.2 billion, exceeding estimates, with earnings per share of $2.92 also beating expectations [28][29] Other Notable Earnings Reports - Morgan Stanley's profits surged 45% in Q3, driven by a 44% increase in deal-making fees to $2.1 billion and a 24% rise in trading fees [36][37][38] - Citigroup's net income for Q3 was $3.8 billion, or $1.86 per diluted share, with total revenue growing 9% to $22.1 billion, driven by increased deal-making and trading activities [46][47]

Core Insights - First Horizon Corp. (NYSE:FHN) experienced significant volatility, reaching an all-time high before closing down 9.43% on the same day due to a price target downgrade by Jefferies [1][2]. Financial Performance - For the third quarter, First Horizon reported a net income of $254 million, reflecting a 19% increase from $213 million in the same period last year [3]. - Net interest income rose by 7.5% to $674 million from $627 million year-on-year, driven by growth in higher-yielding portfolios and increased accretion related to the Main Street Lending Program [3]. Market Reactions - The downgrade of First Horizon's price target from $28 to $25, while maintaining a "buy" recommendation, was attributed to the company's hints of potential acquisitions, which created a "near-term overhang" [2]. - The market had previously expected First Horizon to be an acquisition target, making the strategic shift a point of concern for investors [2].

Core Insights - First Horizon Corporation's (FHN) third-quarter 2025 adjusted earnings per share (EPS) of 51 cents exceeded the Zacks Consensus Estimate of 45 cents and increased from 42 cents in the same quarter last year [1][9] - The results were driven by an increase in net interest income (NII) and non-interest income, along with provision benefits, although there was a decline in loan and deposit balances [10] Financial Performance - Net income available to common shareholders on a GAAP basis was $254 million, reflecting a year-over-year increase of 19.2% [2] - Total quarterly revenues reached $889 million, up 7.4% year over year, and surpassed the Zacks Consensus Estimate by 5.1% [3] - NII rose nearly 7.5% year over year to $674 million, with the net interest margin increasing by 24 basis points to 3.55% [3] - Non-interest income was $215 million, also up 7.5% from the previous year [3] Expense Analysis - Non-interest expenses increased by 7.8% year over year to $551 million, attributed to rising costs across nearly all components except for amortization of intangible assets [4] - The efficiency ratio was 61.92%, slightly up from 61.89% in the prior year, indicating a slight deterioration in profitability [4] Loan and Deposit Trends - Total period-end loans and leases were $63.05 billion, showing a slight decrease from the previous quarter [5] - Total period-end deposits were $65.52 billion, which also declined moderately [5] Credit Quality Assessment - Non-performing loans and leases increased by 4.7% year over year to $605 million [6] - The allowance for loan and lease losses was $777 million, down 5.6% from the previous year, with the ratio of total allowance to loans and leases at 1.23%, down from 1.32% [6][8] - Net charge-offs were $26 million, an increase of 8.3% year over year, while provision benefits were recorded at $5 million compared to a provision for credit losses of $35 million in the prior year [7] Capital Ratios - As of September 30, 2025, the Common Equity Tier 1 ratio was 11%, down from 11.2% a year earlier [8] - The total capital ratio decreased to 13.8% from 14.2% in the prior year [8] - The tier 1 leverage ratio was 10.5%, down from 10.6% in the previous year [8]

Core Insights - First Horizon (FHN), a regional bank based in Tennessee, reported reasonably strong Q3 2025 results, but the stock declined nearly 10% on the announcement, possibly reflecting the adage "Buy on rumor, sell on news" or concerns raised by JPMorgan & Chase CEO Jamie Dimon [1] - The stock price drop erased 75% of the gains for long-time shareholders in 2025, although they remain up 98% over the past five years, significantly outperforming the iShares U.S. Regional Banks ETF (IAT) [2] - FHN experienced a significant increase in options trading volume, with 173,468 contracts traded, marking the second-highest daily volume in 2025 and 5.8 times the 30-day average [2][3] Options Activity - The unusual options activity for FHN included 11 notably active options, comprising eight calls and three puts, with two trades ranking in the top 12 [3][4] - Among the eight calls, three had expiration dates around 90 days, indicating a strategic interest in short-term movements [7] Investment Strategy - A Stock Repair strategy, also known as a Covered Ratio Spread, is suggested for investors holding FHN shares, aiming to recover some or all of the original investment while not purchasing additional shares [5][6] - The strategy involves buying one ATM call and selling two calls at higher strike prices, specifically recommending a long $21 call expiring on January 16, 2026, while selling two short calls at either $22 or $28 [6][8]

Core Insights - First Horizon Corp reported third-quarter earnings per share (EPS) of 51 cents, exceeding the analyst consensus estimate of 44 cents per share [1] - The company achieved quarterly sales of $889 million, surpassing the analyst consensus estimate of $847.179 million [1] Company Performance - Chairman, President, and CEO Bryan Jordan highlighted the strong quarterly performance as a result of disciplined strategy execution and the expertise of associates [2] - The diversified business model and geographic footprint of First Horizon are seen as advantageous in a changing environment [2] - The company's focus on safety, profitability, and growth aims to meet evolving client needs with tailored solutions [2] Stock Performance and Analyst Ratings - Following the earnings announcement, First Horizon shares increased by 0.4% to $20.92 [2] - Analysts have adjusted their price targets for First Horizon, with JP Morgan lowering it from $25 to $23 while maintaining a Neutral rating [5] - Keefe, Bruyette & Woods also lowered their price target from $24 to $23, maintaining a Market Perform rating [5] - Evercore ISI Group downgraded First Horizon from Outperform to In-Line, reducing the price target from $26 to $20 [5] - Wells Fargo maintained an Equal-Weight rating but lowered the price target from $25 to $23 [5]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - First Horizon's stock experienced a significant selloff, dropping as much as 14%, following CEO Bryan Jordan's indication of potential plans to acquire another bank, which surprised investors [5]. Group 1 - The stock price of First Horizon (NYSE:FHN) fell sharply, indicating investor concern over the CEO's comments [5]. - CEO Bryan Jordan expressed increasing confidence in the company's ability to pursue acquisitions, suggesting a strategic shift [5].

First Horizon (NYSE:FHN) shares retreated 12% in Wednesday late morning trading, even after the bank turned in stronger-than-expected results for the third quarter, aided by both net interest income and fees. Also, the company maintained its full-year 2025 guidance for ...

First Horizon (NYSE:FHN) Q3 2025 Earnings Call October 15, 2025 09:30 AM ET Company ParticipantsBryan Jordan - Chairman, President, and CEOTyler Craft - Head of Investor RelationsHope Dmuchowski - CFOThomas Hung - Chief Credit OfficerConference Call ParticipantsAndrew Leischner - AnalystTimur Braziler - AnalystBen Gerlinger - AnalystJared Shaw - AnalystJanet Lee - AnalystJon Arfstrom - AnalystNick Holowko - AnalystCasey Haire - AnalystNone - AnalystChristopher Marinac - AnalystAnthony Elian - AnalystModerat ...

Financial Data and Key Metrics Changes - The company reported an adjusted earnings per share (EPS) of $0.51, a $0.06 increase from the previous quarter [5] - Adjusted return on tangible common equity increased by 135 basis points to 15% [5] - Net interest income (NII) grew by $33 million, with a 15 basis point expansion of net interest margin to 3.55% [6][5] - Average rate paid on interest-bearing deposits increased to 2.78%, up from 2.76% in the previous quarter [6] Business Line Data and Key Metrics Changes - Period-end loans decreased slightly, with loans to mortgage companies down $132 million, consistent with seasonal trends [7] - The commercial and industrial (CNI) portfolio saw an increase of $174 million quarter over quarter [8] - Fee income increased by $26 million from the prior quarter, driven by improved business conditions [8] - Adjusted expenses increased by $45 million from the previous quarter, primarily due to personnel expenses and outside services [9] Market Data and Key Metrics Changes - Period-end deposit balances decreased by $52 million, driven by a decrease in brokered CDs, but non-interest-bearing deposits increased by $131 million [6] - The company retained approximately 97% of the $29 billion in balances associated with clients who had a repricing event [6] Company Strategy and Development Direction - The company is focused on achieving sustainable growth and profitability while maintaining safety and soundness [4] - There is an emphasis on integrating potential mergers and acquisitions (M&A) that align with the company's existing footprint and culture [16] - The company aims to drive additional pre-tax net revenue of over $100 million through efficiency and revenue enhancements [12][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth due to increased client confidence and the potential for further Fed rate cuts [15] - The company is confident in its ability to achieve a sustainable 15% plus adjusted return on tangible common equity [17] - Management noted that the competitive environment for deposits is heating up, and they are focused on retaining existing clients while attracting new ones [6][33] Other Important Information - The company ended the quarter with a Common Equity Tier 1 (CET1) ratio of 11%, flat quarter over quarter [10] - Share buybacks accelerated to $190 million, with approximately 8.6 million shares repurchased [12] Q&A Session Summary Question: How optimistic is the company on growth and is there a noticeable change from a quarter ago? - Management noted increased confidence and noticeable changes in client behavior, with pipelines building throughout the quarter [22] Question: What is the outlook for the margin in the fourth quarter? - Management indicated that the margin may stabilize in the high 330s to low 340s, adjusting for one-time items [23] Question: What is driving the decline in core deposits? - Management explained that the industry is experiencing a mix shift, with clients moving funds into brokerage accounts, but they maintain a high retention rate of existing clients [33] Question: What are the company's M&A considerations? - Management emphasized a focus on organic growth but remains open to opportunistic M&A if the right opportunity arises [39][40] Question: How does the company view its capital position and buyback strategy? - Management stated that buybacks will be contingent on loan growth, with a focus on deploying capital effectively [98]