Core Viewpoint - First Horizon reported a strong finish to 2025, highlighting improved profitability metrics, solid loan and deposit trends, and substantial capital returns, while providing an optimistic outlook for 2026 with expected revenue growth and expense discipline [4]. Financial Performance - The company ended Q4 with earnings per share of $0.52, a net interest margin (NIM) of 3.51%, and 2% loan growth, benefiting from deposit pricing and loan growth in certain categories [3][6]. - Net interest income increased by approximately $2 million compared to the prior quarter, although NIM compressed by four basis points [2]. - The average interest-bearing deposit cost declined by 25 basis points to 2.53% [1]. Loan and Deposit Trends - Period-end loans increased by $1.1 billion, or 2%, from the prior quarter, with significant growth in loans to mortgage companies, which rose by $776 million [7]. - The company also reported broad-based strength in commercial and industrial lending, with a $727 million increase in the C&I portfolio [8]. Fee Income and Expenses - Fee income rose by $3 million from the prior quarter, primarily driven by service charges and elevated activity in the equipment finance lease business [9]. - Adjusted expenses increased by $4 million, with personnel expenses rising by $12 million due to annual bonus adjustments [10][11]. Credit Trends and Capital Return - Credit results remained stable, with net charge-offs increasing by $4 million to $30 million, and the net charge-off ratio at 19 basis points [14]. - The company ended the quarter with a Common Equity Tier 1 (CET1) ratio of 10.64%, having repurchased nearly $335 million of common shares in Q4 and a total of $894 million for 2025 [16][17]. 2026 Outlook - For 2026, management expects PPNR-driven revenue growth of 3%–7%, with NIM around the mid-340s and net charge-offs projected at 15–25 basis points [5][20]. - The company aims to deepen client relationships and invest in technology while maintaining efficiency and discipline [13][19].

Core Viewpoint - First Horizon Corporation has shown significant financial growth and a positive outlook from analysts, despite some cautious perspectives reflected in varying price targets Financial Performance - For the full year 2025, First Horizon's Net Income Available to Common Shareholders (NIAC) increased by 29% to $956 million, resulting in an Earnings Per Share (EPS) of $1.87 [3] - In Q4 2025, NIAC grew by 1% to $257 million, with an adjusted income of $259 million, reflecting a 2% increase from Q3 [4] Price Target Trends - The consensus price target for First Horizon's stock has gradually increased from $26.22 a year ago to $27.43 recently, indicating a positive analyst outlook [2][6] - J.P. Morgan analyst Steven Alexopoulos has set a lower price target of $20, reflecting a more cautious stance [2] Ownership and Analyst Ratings - First Horizon has a high level of insider and institutional ownership at 80.3%, suggesting strong confidence in the company's future [5][6] - The company has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings prospects [5]

Core Viewpoint - First Horizon Corporation (FHN) has shown strong performance over the past year, with a gain of approximately 15% [1] Company Positioning - The bank is well positioned with a strong presence in the Southeast region of the United States [1] - First Horizon has limited exposure to commercial real estate, which may mitigate certain risks [1]

Shares of First Horizon Corporation ( FHN ) have been a solid performer over the past year, gaining about 15%. The bank is well positioned with a strong footprint across the Southeast and with limited exposure to commercial real estate, thoughOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me ...

Core Insights - The company reported a strong fourth quarter with earnings per share of $0.52 and a net interest margin (NIM) of 3.512%, despite a four basis point compression in margin [2] - The company is optimistic about improving profitability and growth in 2026, with a focus on returning capital to shareholders while investing in growth opportunities [3][4] Financial Performance - Net interest income (NII) grew by approximately $2 million, driven by deposit pricing and strong loan growth, particularly in loans to mortgage companies, which increased by $767 million [2][5] - Average interest-bearing deposits decreased to 2.53% from 2.78%, with period-end balances increasing by $2 billion compared to the prior quarter [1][5] - The company returned nearly $900 million in stock repurchases and over $300 million in dividends in 2025 [4] Loan and Deposit Trends - Period-end loans increased by $1.1 billion or 2% from the prior quarter, with significant growth in the mortgage sector due to a pickup in refinancing activity [5][6] - The commercial real estate (CRE) portfolio saw a slight reduction in balances but an increase in commitments, indicating positive momentum entering 2026 [6] Expense Management - Adjusted expenses, excluding deferred compensation, increased by $4 million, with personnel expenses rising due to incentives and commissions [7] - The company expects expenses to remain flat in 2026, with a focus on managing costs while investing in technology and personnel [10][61] Credit Quality - Net charge-offs increased to $30 million, with a net charge-off ratio of 19 basis points, aligning with expectations [8] - The allowance for credit losses (ACL) to loan ratio declined to 1.31%, reflecting improvements across the commercial portfolio [8] Capital Management - The company ended the quarter with a Common Equity Tier 1 (CET1) ratio of 10.64%, with plans to maintain a target range of 10.5% to 10.75% [8][12] - A new repurchase program of $1.2 billion was announced, with nearly $1 billion of authorization remaining [10][9] Outlook and Growth Strategy - The company anticipates year-over-year PPNR growth with total revenue expectations ranging from 3% to 7% in 2026 [10] - Continued improvements in market conditions for fixed income and mortgage lines of business are expected to drive higher revenues [11] - The company is focused on deepening client relationships and enhancing product offerings to achieve sustainable growth [16]

Financial Data and Key Metrics Changes - The company reported earnings per share of $0.52 for Q4 2025, with a net interest margin of 3.51% and 2% loan growth [8] - Pre-provision net revenue and return on tangible common equity reached 15% in the second half of 2025 [5][6] - Net interest income grew by approximately $2 million, with a net interest margin compression of four basis points, but an expansion of two basis points when excluding notable items [8][9] Business Line Data and Key Metrics Changes - Loans to mortgage companies increased by $776 million quarter over quarter, contributing significantly to loan growth [10] - The commercial and industrial (C&I) portfolio saw a period-end balance increase of $727 million from the prior quarter [10] - Fee income increased by $3 million from the prior quarter, driven by elevated activity in equipment finance lease businesses [11] Market Data and Key Metrics Changes - Period-end balances for deposits increased by $2 billion compared to the prior quarter, with the average rate paid on interest-bearing deposits decreasing to 2.53% [9] - The cumulative deposit beta has been maintained at 64% since rates began to fall in September 2024 [9] - The company expects mid-single-digit balance sheet growth and total revenue growth of 3%-7% year-over-year for 2026 [12][13] Company Strategy and Development Direction - The company aims to deepen client relationships and enhance profitability through treasury management and wealth management services [18] - A strategic plan has been distilled into a five-page framework to clarify differentiation in the marketplace and foster long-lasting client relationships [16] - The focus remains on expense discipline while investing in technology and personnel to enhance operational efficiency [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving profitability and continued earnings growth in 2026, citing positive signs in loan growth pipelines [7][16] - The company is confident in its diverse business model and robust footprint to meet revenue growth targets across various economic scenarios [17] - Management highlighted the importance of macroeconomic conditions and the Fed's balance sheet in determining deposit pricing and growth [35] Other Important Information - The company returned just under $900 million in capital through stock repurchases and over $300 million in dividends in 2025 [6] - A new repurchase program of $1.2 billion was announced at the end of October, with nearly $1 billion of authorization remaining [12] Q&A Session Summary Question: Revenue outlook and key drivers - Management indicated that the revenue outlook of 3%-7% growth is based on the current forward curve, with loan growth being a significant factor [21][22] Question: Expense growth normalization - Management expects expenses to align with inflation, estimating a growth rate of 2.5%-3% in the absence of heavy tech investments [23][24] Question: Loan growth expectations across products - Management anticipates mid-single-digit loan growth, with positive momentum in C&I and mortgage warehouse lending [29][31] Question: Net interest income trajectory - Management expects net interest income growth to be in the low single digits, influenced by deposit betas and loan growth [42][44] Question: M&A considerations - Management is open to small acquisitions to enhance the branch franchise but prioritizes organic growth and profitability [50][51] Question: Credit quality and reserve outlook - Management is confident in current reserve levels and expects net charge-offs to remain stable, reflecting strong credit performance [61][107]

Financial Data and Key Metrics Changes - The company reported earnings per share of $0.52 for Q4 2025, with a net interest margin of 3.51% and 2% loan growth [8][9] - Pre-provision net revenue and return on tangible common equity reached 15% in the second half of 2025, with net interest income growth of approximately $2 million [5][6] - The average interest-bearing cost of deposits decreased by 25 basis points, contributing to improved profitability [8][9] Business Line Data and Key Metrics Changes - Loans to mortgage companies increased by $776 million quarter-over-quarter, driven by a pickup in the refinance market [9][10] - The commercial and industrial (C&I) portfolio saw a $727 million increase in period-end balances, indicating strong origination volume [10] - Fee income increased by $3 million from the prior quarter, primarily due to elevated activity in equipment finance lease businesses [10] Market Data and Key Metrics Changes - Period-end balances for deposits increased by $2 billion compared to the prior quarter, with the average rate paid on interest-bearing deposits decreasing to 2.53% [9][10] - The company maintained a cumulative deposit beta of 64% since rates began to fall in September 2024 [9] Company Strategy and Development Direction - The company aims to continue returning capital to shareholders while investing in growth opportunities, with a focus on improving profitability and earnings growth in 2026 [7][16] - Strategic priorities include serving clients well, growing profitable relationships, and delivering on financial objectives, with an emphasis on deepening client relationships and enhancing product offerings [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ability to improve profitability and grow earnings in 2026, citing positive signs in current pipelines, especially in commercial lending [16][17] - The company expects year-over-year PPNR growth with mid-single-digit balance sheet growth and positive operating leverage [12][13] Other Important Information - The company ended the quarter with a CET1 ratio of 10.64%, with plans for a new repurchase program of $1.2 billion [12][13] - Management highlighted the importance of expense discipline and efficiency while continuing to invest in technology and personnel [17][18] Q&A Session Summary Question: Revenue outlook and key drivers - Management indicated that the revenue outlook of 3%-7% growth is based on the current forward curve, with loan growth being a significant factor [21][22] Question: Expense growth normalization - Management expects expenses to align with inflation, estimating a growth rate of 2.5%-3% in the absence of heavy tech investments [23][24] Question: Loan growth expectations - Management anticipates mid-single-digit loan growth, with strong momentum in C&I and mortgage warehouse lending [29][31] Question: Net interest income trajectory - Management expects net interest income growth to be in the low single digits, influenced by deposit betas and loan growth [42][44] Question: M&A considerations - Management is open to small acquisitions to enhance the branch franchise but prioritizes organic growth and profitability [50][51] Question: Credit quality and reserves - Management is confident in current reserve levels and expects net charge-offs to remain stable, reflecting strong credit performance [57][61]

Core Insights - First Horizon National (FHN) reported a revenue of $888 million for the quarter ended December 2025, reflecting a year-over-year increase of 21.8% and surpassing the Zacks Consensus Estimate by 2.99% [1] - The earnings per share (EPS) for the quarter was $0.52, an increase from $0.43 in the same quarter last year, although it did not meet the consensus EPS estimate of $0.47 [1] Financial Performance Metrics - Net Interest Margin (FTE) was reported at 3.5%, exceeding the average estimate of 3.4% from four analysts [4] - The Efficiency Ratio stood at 61.3%, higher than the average estimate of 59.7% based on four analysts [4] - The Net Charge-Off Ratio was 0.2%, matching the average estimate from three analysts [4] - Average Balance of Total Interest Earning Assets was $77.03 billion, above the estimated $76.16 billion from two analysts [4] - Total Nonperforming Loans and Leases were reported at $604 million, lower than the estimated $622.63 million from two analysts [4] - Total Non-Interest Income was $212 million, slightly above the average estimate of $209.29 million from four analysts [4] - Net Interest Income (FTE) was $679 million, exceeding the estimate of $659.03 million from three analysts [4] - Net Interest Income was reported at $676 million, compared to the average estimate of $654.83 million from three analysts [4] Stock Performance - Shares of First Horizon have returned +0.8% over the past month, while the Zacks S&P 500 composite increased by +1.6% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

First Horizon (NYSE:FHN) Q4 2025 Earnings call January 15, 2026 09:30 AM ET Speaker4Hello, everyone, and thank you for joining the First Horizon Fourth Quarter 2025 earnings conference call. My name is Lucy, and I'll be coordinating your call today. During the presentation, you can register a question by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two. It is now my pleasure to hand over to your host, Tyler Craft, Head of Investor Relations, ...

Financial Performance - Net income available to common shareholders (NIAC) for 2025 was $956 million, a 29% increase compared to $738 million in 2024[7] - Diluted EPS for 2025 was $187, a 38% increase compared to $136 in 2024[7] - Adjusted EPS for 2025 was $189, up 22% from 2024[11] - Adjusted pre-tax income increased by 14% from 2024 to $13 billion[13] - The company deployed over $12 billion of excess capital, including $894 million in stock buybacks and $307 million in dividends[13] Balance Sheet and Capital - Period-end loans reached $642 billion, a 3% increase compared to $626 billion at the end of 2024[7] - Period-end deposits reached $675 billion, a 3% increase compared to $656 billion at the end of 2024[7] - Tangible book value per share (TBVPS) increased by 11% to $1420 from $1285 in 2024[7] - CET1 ratio was 1064%[11] Asset Quality - Net charge-offs (NCO) were 019% of total loans[11]