Core Viewpoint - First Horizon Corporation's first-quarter 2025 adjusted earnings per share of 42 cents exceeded the Zacks Consensus Estimate of 40 cents and improved from 35 cents in the prior year, driven by a slight increase in net interest income and reduced expenses, although challenges included a decline in fee income and a weakening capital position [1][2][11]. Financial Performance - Net income available to common shareholders was $213 million, reflecting a year-over-year increase of 15.8% [2]. - Total quarterly revenues amounted to $812 million, a slight decrease year-over-year, and fell short of the Zacks Consensus Estimate of $818.3 million [3]. - Net interest income rose nearly 1% year-over-year to $631 million, with the net interest margin increasing by 5 basis points to 3.42% [3]. - Non-interest income was $181 million, down 6.7% from the previous year, primarily due to declines in most non-interest income components [4]. - Non-interest expenses decreased by 5.2% year-over-year to $488 million, attributed to reductions in nearly all cost components except for occupancy and equipment costs [4]. - The efficiency ratio improved to 60.06%, down from 62.92% in the prior year, indicating enhanced profitability [5]. Loan and Deposit Trends - Total period-end loans and leases were $62.22 billion, showing a slight decrease from the previous quarter, while total period-end deposits were $64.21 billion, down 2.1% [6]. Credit Quality - Non-performing loans and leases increased by 20.6% year-over-year to $609 million, with the allowance for loan and lease losses rising 4.4% to $822 million [7]. - The ratio of total allowance for loans and lease losses to loans and leases was 1.32%, up from 1.06% in the prior year [7]. - Net charge-offs decreased by 27.5% year-over-year to $29 million, and the provision for credit losses fell by 20% to $40 million [8]. Capital Ratios - As of March 31, 2025, the Common Equity Tier 1 ratio was 10.9%, down from 11.3% a year earlier, while the total capital ratio decreased to 13.7% from 13.9% [9]. Share Repurchase Activity - In the reported quarter, the company repurchased $360 million worth of common stock [10].

Core Insights - First Horizon National (FHN) reported revenue of $812 million for the quarter ended March 2025, reflecting a decrease of 0.9% year-over-year and a surprise of -0.76% compared to the Zacks Consensus Estimate of $818.25 million [1] - The earnings per share (EPS) for the quarter was $0.42, an increase from $0.35 in the same quarter last year, resulting in an EPS surprise of +5.00% against the consensus estimate of $0.40 [1] Financial Performance Metrics - The efficiency ratio was reported at 60.1%, better than the three-analyst average estimate of 61.4% [4] - The net interest margin (FTE) was 3.4%, matching the average estimate from three analysts [4] - The average balance of total interest-earning assets was $74.79 billion, below the average estimate of $75.63 billion from two analysts [4] - Total nonperforming loans and leases stood at $609 million, compared to the average estimate of $621.05 million from two analysts [4] - The net charge-off ratio was 0.2%, aligning with the average estimate from two analysts [4] - Net interest income was reported at $631 million, exceeding the three-analyst average estimate of $624.62 million [4] - Total non-interest income was $181 million, falling short of the average estimate of $191.65 million from three analysts [4] - Net interest income (FTE) was $634 million, slightly above the two-analyst average estimate of $625.91 million [4] Stock Performance - Over the past month, shares of First Horizon have returned -6.7%, compared to a -4.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported an adjusted EPS of $0.42 per share, a decrease of $0.01 from the prior quarter [12] - Pre-provision net revenue grew by $16 million from the fourth quarter, with a net interest margin expansion of 9 basis points [13] - Total expenses decreased by $20 million, excluding deferred compensation [13][28] - The CET1 ratio ended the quarter at 10.9%, reflecting the impact of $360 million in share repurchases [18][32] Business Line Data and Key Metrics Changes - Net interest income increased by $1 million, driven by a 38 basis point reduction in interest-bearing deposit costs [17] - Fee income, excluding deferred compensation, declined by $5 million [17] - Period-end loans decreased by 1% from the prior quarter, with a notable decline in commercial real estate [23] - The average rate paid on interest-bearing deposits decreased to 2.72%, down from 3.10% in the previous quarter [22] Market Data and Key Metrics Changes - The company experienced a decline in period-end balances primarily due to the payoff of $559 million in brokered CDs [20] - The interest-bearing spot rate ended March at 2.70%, down 10 basis points from the end of December [22] - The company retained 95% of the $16 billion in deposits and CDs that repriced in the first quarter [21] Company Strategy and Development Direction - The company aims to maintain a disciplined approach focusing on safety, soundness, profitability, and growth [10][11] - The strategic deployment of excess capital through share repurchase programs is a priority, with organic loan growth being the top choice for capital utilization [33] - The company remains committed to achieving a 15% plus return on tangible common equity over the next few years [39][44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about avoiding a recession despite heightened macroeconomic uncertainty [10] - The company anticipates that the economic environment will stabilize, allowing for continued growth and engagement with clients [62] - Management highlighted the importance of monitoring the portfolio closely to identify emerging credit risks [31] Other Important Information - The company increased its provision expense by $30 million to account for macroeconomic uncertainty [17] - The net charge-off ratio was reported at 19 basis points, consistent with strong performance in 2024 [14][30] - The company expects year-over-year expense increases between 2% and 4%, influenced by fixed income and mortgage production [36] Q&A Session Summary Question: Outlook on PPNR growth given uncertainty and volatility - Management remains confident in guidance, with a base case of three rate cuts anticipated [49][50] Question: Appetite for continued share buybacks - The company intends to maintain an 11% CET1 target but may adjust it based on economic conditions [56][58] Question: Insights on C&I loan balances and borrower sentiment - Borrowers are exhibiting a wait-and-see approach due to uncertainty, but optimism remains [61][66] Question: Reserve increase rationale - Reserves were increased due to macroeconomic uncertainty, with a focus on being adequately reserved [69] Question: Timeline for achieving 15% ROTCE - Management believes achieving 15% ROTCE is appropriate for a midsized regional bank and is focused on driving profitability [74][75] Question: Mortgage warehouse business outlook - The company is optimistic about the mortgage warehouse business, anticipating growth if rates decline [80][81] Question: Discussion on hedging strategies for margin protection - The company is actively monitoring interest rate sensitivity and considering hedging strategies [89] Question: Updates on fixed income business and ADRs - The fixed income business is experiencing volatility, impacting customer activity and ADRs [125] Question: Future expenses and project pipeline - The company does not expect a significant spike in expenses in the near term, focusing on long-term investments [130][131]

This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to FHN's beliefs, plans, goals, expectations, and estimates. Forward-looking statements are not a representation of historical information, but instead pertain to future operations, strategies, financial results, or other developments. Forward-lookin ...

Core Insights - First Horizon National (FHN) reported revenue of $812 million for the quarter ended March 2025, reflecting a decrease of 0.9% year-over-year and a surprise of -0.76% compared to the Zacks Consensus Estimate of $818.25 million [1] - The earnings per share (EPS) for the quarter was $0.42, an increase from $0.35 in the same quarter last year, resulting in an EPS surprise of +5.00% against the consensus estimate of $0.40 [1] Financial Performance Metrics - The efficiency ratio was reported at 60.1%, better than the three-analyst average estimate of 61.4% [4] - The net interest margin (FTE) was 3.4%, matching the average estimate from three analysts [4] - The average balance of total interest-earning assets was $75.33 billion, slightly below the average estimate of $75.63 billion from two analysts [4] - Total nonperforming loans and leases stood at $609 million, compared to the average estimate of $621.05 million from two analysts [4] - The net charge-off ratio was 0.2%, consistent with the two-analyst average estimate [4] - Net interest income was reported at $631 million, exceeding the three-analyst average estimate of $624.62 million [4] - Total non-interest income was $181 million, below the average estimate of $191.65 million from three analysts [4] - Net interest income (FTE) was $634 million, slightly above the two-analyst average estimate of $625.91 million [4] Stock Performance - Over the past month, shares of First Horizon have returned -6.7%, compared to a -4.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - First Horizon Corporation has updated its conference call information due to an unforeseen outage with an external carrier, indicating the company's commitment to maintaining communication with stakeholders [1]. Group 1: Conference Call Information - The conference call is scheduled for April 16, 2025, at 8:30 AM CT, with updated dial-in information provided for participants [1]. - Participants can also listen to a live audio webcast and access a replay of the call, which will be available from noon CT on April 16 until midnight CT on April 30, 2025 [2]. Group 2: Company Overview - First Horizon Corporation, as of March 31, 2025, has $81.5 billion in assets and operates as a leading regional financial services company [3]. - The company is headquartered in Memphis, TN, and its banking subsidiary, First Horizon Bank, operates in 12 states across the southern U.S., offering a wide range of financial services [3]. - First Horizon has received recognition as one of the nation's best employers by Fortune and Forbes magazines and is listed as a Top 10 Most Reputable U.S. Bank [3].

分组1 - First Horizon National (FHN) reported quarterly earnings of $0.42 per share, exceeding the Zacks Consensus Estimate of $0.40 per share, and up from $0.35 per share a year ago, representing a 5% earnings surprise [1] - The company posted revenues of $812 million for the quarter ended March 2025, which was a 0.76% miss compared to the Zacks Consensus Estimate, and down from $819 million year-over-year [2] - Over the last four quarters, First Horizon has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] 分组2 - First Horizon shares have declined approximately 12.8% since the beginning of the year, while the S&P 500 has decreased by 8.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $831.85 million, and for the current fiscal year, it is $1.69 on revenues of $3.35 billion [7] - The Zacks Industry Rank for Banks - Southwest, to which First Horizon belongs, is currently in the top 15% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - First Horizon reported net income available to common shareholders of $213 million, with an EPS of $0.41, a 41% increase from the prior quarter's EPS of $0.29[1] - Adjusted net income for the first quarter was $217 million or $0.42 per share, down from $228 million or $0.43 per share in the fourth quarter of 2024[1] - Total revenue for Q1 2025 was $812 million, reflecting an 11% increase from $729 million in Q4 2024[26] - Net income for Q1 2025 was $222 million, up 31% from $170 million in Q4 2024[26] - Diluted EPS for Q1 2025 was $0.41, representing a 41% increase compared to $0.29 in Q4 2024[26] - Adjusted net income available to common shareholders for Q1 2025 was $217 million, reflecting an 11% increase from $195 million in Q1 2024[28] - Adjusted diluted EPS for Q1 2025 was $0.42, a 20% increase from $0.35 in Q1 2024[28] Income and Expenses - Net interest income increased by $1 million to $634 million, with a net interest margin of 3.42%, up 9 basis points from the previous quarter[6] - Noninterest income rose by $82 million to $181 million, primarily due to the absence of a $91 million notable loss from the previous quarter's securities portfolio restructuring[7] - Noninterest expense decreased by $21 million to $488 million, with adjusted noninterest expense down $24 million to $482 million[8] - Total noninterest expense decreased to $488 million in Q1 2025, down 4% from $508 million in Q4 2024[26] - Adjusted total noninterest expense decreased by 5% to $482 million in Q1 2025, compared to $506 million in Q4 2024[28] Asset and Liability Management - Average loan and lease balances decreased by $773 million to $61.6 billion, while period-end balances were $62.2 billion, down $350 million from the fourth quarter[9] - Average deposits fell by $1.6 billion to $64.5 billion, with period-end deposits declining by $1.4 billion[10] - Total assets decreased by $660 million to $81.491 billion, a 1% decline from Q4 2024[37] - Total deposits fell by $1.373 billion to $64.208 billion, a 2% decrease compared to Q4 2024[37] - Loans and leases net of unearned income decreased by $350 million to $62.215 billion, a 1% decline from Q4 2024[37] Credit Quality - Provision expense for credit losses increased by $30 million to $40 million, with net charge-offs rising to $29 million, or 19 basis points[11] - Provision for credit losses increased to $40 million in Q1 2025, compared to $10 million in Q4 2024[26] - Total nonperforming loans and leases increased to $609 million in Q1 2025, up 1% from $602 million in Q4 2024 and up 21% from $505 million in Q1 2024[42] - The asset quality ratio for total nonperforming loans and leases to loans and leases was 0.98% in Q1 2025, compared to 0.96% in Q4 2024 and 0.82% in Q1 2024[42] - The allowance for loan and lease losses at the end of 1Q25 was $822 million, reflecting a 1% increase from $815 million in Q4 24[48] Capital and Ratios - The Common Equity Tier 1 (CET1) ratio was 10.9%, slightly down from the previous quarter, as $360 million of excess capital was returned to shareholders[12] - The effective tax rate for the first quarter was 22.0%, compared to 19.3% in the fourth quarter of 2024[13] - Return on average assets improved to 1.11%, a 29 basis point increase compared to Q4 2024 and a 14 basis point increase from Q1 2024[35] - Return on average common equity (ROCE) rose to 10.30%, up 292 basis points from Q4 2024 and 154 basis points from Q1 2024[35] - Adjusted ROTCE for Q1 2025 was 13.1%, slightly down from 13.3% in Q4 2024[28] Operational Efficiency - Adjusted efficiency ratio improved to 59.1% in Q1 2025, down from 60.8% in Q1 2024[28] - Efficiency ratio improved to 60.06%, down 192 basis points from Q4 2024[35] - The efficiency ratio (GAAP) improved to 60.06% in Q1 2025 from 61.98% in Q4 2024, indicating enhanced operational efficiency[69] - The adjusted efficiency ratio (Non-GAAP) improved to 59.09% in Q1 2025 from 61.43% in Q4 2024, indicating better cost management[69] Segment Performance - In the Wholesale segment, net interest income was $50 million in Q1 2025, down 8% from Q4 2024[56] - The net income for the Wholesale segment was $22 million in Q1 2025, a decrease of 17% from Q4 2024[56] - Net income for Q1 2025 was a loss of $69 million, an improvement of 52% compared to a loss of $143 million in Q4 2024[59] - Total revenues decreased by 30% to $(30) million in Q1 2025 from $(134) million in Q4 2024[59] - Noninterest income was $12 million, down from $75 million in Q4 2024, representing a decline of 84%[59]

Financial Performance - First Horizon Corporation reported a net income available to common shareholders of $213 million for Q1 2025, translating to earnings per share (EPS) of $0.41, an increase of $0.12 from the previous quarter [1] - Adjusted net income for Q1 2025 was $217 million or $0.42 per share, down $0.01 from the prior quarter's adjusted net income of $228 million or $0.43 per share [1][12] - Notable items reduced the first quarter results by $4 million after-tax, or $0.01 per share, compared to a reduction of $71 million or $0.13 per share in Q4 2024 [1] Company Strategy and Outlook - The company emphasizes a business model focused on safety, soundness, profitability, and growth, which positions it to manage uncertainties and adapt to economic changes [3] - First Horizon has a 161-year history of performance through diverse economic conditions, indicating its capability for sustainable growth and long-term stakeholder benefits [3] Company Overview - First Horizon Corporation, with $81.5 billion in assets as of March 31, 2025, operates as a leading regional financial services company headquartered in Memphis, TN [11] - The banking subsidiary, First Horizon Bank, provides a range of services including commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking across 12 states in the southern U.S. [11] - The company has received recognition as one of the nation's best employers and a Top 10 Most Reputable U.S. Bank [11]

Core Viewpoint - First Horizon National (FHN) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, continuing a strong trend of surpassing expectations in previous quarters [1]. Earnings Performance - First Horizon has consistently exceeded earnings estimates, with an average surprise of 11.84% over the last two quarters [2]. - In the most recent quarter, the company reported earnings of $0.43 per share against an expected $0.38, resulting in a surprise of 13.16% [2]. - For the previous quarter, First Horizon's actual earnings were $0.42 per share, surpassing the consensus estimate of $0.38, which led to a surprise of 10.53% [2]. Earnings Estimates and Predictions - Recent estimates for First Horizon have been revised upward, indicating growing analyst confidence in the company's near-term earnings potential [5]. - The Zacks Earnings ESP for First Horizon is currently +3.80%, suggesting a favorable outlook for an earnings beat [8]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) indicates a high probability of another earnings surprise [5][8]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7].