Core Points - First Horizon Bank has entered a multi-year naming rights partnership with the North Carolina Courage, resulting in the stadium being named First Horizon Stadium [1][3] - The partnership aims to enhance community engagement and promote women's soccer while reinforcing Cary's reputation as a premier destination for sporting events [3][4] Company Overview - First Horizon Corp. has $81.5 billion in assets as of March 31, 2025, and operates in 12 states across the southern U.S., offering a wide range of financial services [6] - The bank has been recognized as one of the nation's best employers and a Top 10 Most Reputable U.S. Bank [6] Sports Team Overview - The North Carolina Courage is competing in its ninth season in 2025 and is the winningest club in NWSL history, with seven league trophies [7] - The team plays home matches at First Horizon Stadium, which is part of WakeMed Soccer Park [7][10] Community Impact - The partnership between First Horizon Bank, the NC Courage, and the Town of Cary emphasizes shared values of leadership, innovation, and community impact [3][4] - Cary is recognized for its safe neighborhoods and extensive parks, making it a desirable place for residents and visitors [9]

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]

Financial Performance - Net income available to common shareholders (NIAC) was $213 million, an increase of $29 million or 16% compared to 1Q24[7] - Earnings per share (EPS) reached $041, up $008 or 24% from 1Q24[7] - Total revenue amounted to $812 million, reflecting an 11% increase of $84 million compared to 4Q24, but a decrease of $7 million or 1% compared to 1Q24[7] - Adjusted EPS was $042, a decrease of $001 from 4Q24[12] - Adjusted pre-provision net revenue (PPNR) was $334 million, up $16 million or 5% from 4Q24[9, 12] Balance Sheet and Capital - Period-end loans totaled $622 billion, down $04 billion or 1% from 4Q24[7, 9] - Period-end deposits amounted to $642 billion, a decrease of $14 billion or 2% from 4Q24[7, 9] - The common equity tier 1 (CET1) ratio stood at 109%[7, 9] - Tangible book value per share (TBVPS) increased to $1317, up $032 or 2% from 4Q24[7, 9] Net Interest Income and Margin - Net interest income (NII) was $631 million, up $7 million or 1% compared to 1Q24[7] - Net interest margin (NIM) expanded to 342%, an increase of 9bps from 4Q24[7, 9]

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]