First Horizon(US:FHN)2025-11-06 21:23Financial Position - Total assets increased to $83.192 billion as of September 30, 2025, compared to $82.152 billion at the end of 2024, reflecting a growth of 1.27%[20] - Total deposits slightly decreased to $65.525 billion from $65.581 billion, a decline of 0.09%[20] - Total equity rose to $9.244 billion, compared to $9.111 billion, reflecting an increase of 1.46%[20] - Preferred stock decreased from $426 million to $349 million, a decline of 18.14%[20] - The total capital surplus as of September 30, 2025, is $313 million, a decrease from $318 million at June 30, 2025[27] Loan and Lease Performance - Net loans and leases reached $62.281 billion, up from $61.750 billion, indicating an increase of 0.86%[20] - The allowance for loan and lease losses was $777 million, down from $815 million, representing a reduction of 4.66%[20] - The loan and lease portfolio is segmented into commercial and consumer categories, with specific classes including commercial, real estate, and credit card loans[64] - As of September 30, 2025, total loans and leases amounted to $63,058 million, an increase from $62,565 million on December 31, 2024, representing a growth of 0.79%[66] - The commercial and industrial loans increased to $30,475 million from $29,957 million, reflecting a rise of 1.73%[66] Income and Earnings - Net income for Q3 2025 was $266 million, an increase of 19.3% from $223 million in Q3 2024[25] - Basic earnings per common share increased to $0.50 in Q3 2025, compared to $0.40 in Q3 2024, representing a 25% growth[23] - Total interest income for Q3 2025 was $1,077 million, a decrease of 3.7% from $1,119 million in Q3 2024[22] - Net interest income after provision for credit losses increased to $679 million in Q3 2025, compared to $592 million in Q3 2024, reflecting a growth of 14.7%[22] - Net income available to common shareholders for the nine months ended September 30, 2025, was $699 million, compared to $581 million for the same period in 2024, indicating a 20.3% increase[154] Expenses and Provisions - Total noninterest expense for Q3 2025 was $550 million, up from $511 million in Q3 2024, indicating a rise of 7.6%[22] - The provision for credit losses was a reversal of $5 million in Q3 2025, compared to a provision of $35 million in Q3 2024[22] - The provision for credit losses for the nine months ended September 30, 2025, was $65 million, down from $140 million in 2024, a reduction of 53.6%[188] - Noninterest expense for the nine months ended September 30, 2025, was $1,529 million, slightly increasing from $1,527 million in 2024, reflecting a marginal rise of 0.1%[188] Investment and Securities - As of September 30, 2025, total investment securities available for sale amounted to $8.102 billion, with unrealized losses of $750 million[49] - The total unrealized losses for available-for-sale securities as of September 30, 2025, were $750 million, compared to $1.035 billion as of December 31, 2024[57] - FHN has not recorded any credit-related write-downs for AFS debt securities during the reporting periods, indicating a stable investment strategy[59] - The amortized cost of securities held to maturity was $1.229 billion, with a fair value of $1.079 billion as of September 30, 2025[53] Shareholder Actions - The company repurchased a total of $190 million in common stock during the third quarter of 2025, part of a $1 billion repurchase program initiated in October 2024[28] - Cash dividends declared for common stock amount to $77 million for the third quarter of 2025[27] - The company declared $5 million in cash dividends for preferred stock in the third quarter of 2025[27] Credit Quality and Risk Management - The concentration of credit risk shows that 22% of the commercial and industrial portfolio is sensitive to impacts on the financial services industry, with loans to mortgage and finance companies totaling $3.9 billion each[69] - The credit quality indicators reveal that as of September 30, 2025, 32,707 million in commercial loans were classified as "pass" grades (PD grades 1-12), while 1,336 million were categorized as substandard, doubtful, or loss (PD grades 14-16)[73] - Nonaccrual loans and leases are classified when full collection of principal and interest is at risk, impacting the overall loan quality[84] - The company continues to monitor loans for potential impairment and borrower-specific issues, ensuring proactive risk management[84] Macroeconomic Factors - The SEC's Climate Disclosures Rules remain uncertain due to ongoing legal challenges, impacting FHN's assessment of potential effects on financial statements[46] - The company utilized multiple macroeconomic scenarios, including a baseline scenario from Moody's, to estimate expected credit losses[115]