First Horizon(US:FHN)2026-01-15 11:34Financial Performance - Full year 2025 net income available to common shareholders (NIAC) increased 29% to $956 million, or $1.87 EPS, compared to $738 million, or $1.36 EPS in 2024[1] - Fourth quarter 2025 NIAC was $257 million, or $0.52 EPS, a 1% increase from $254 million, or $0.50 EPS in the third quarter 2025[3] - Adjusted net income rose by 13% to $1,008 million compared to $891 million in the previous year[15] - Earnings per share (EPS) increased by 38% to $1.87 from $1.36[15] - Net income attributable to common shareholders increased by 29% to $956 million from $738 million[15] - The company returned $894 million of capital to shareholders in 2025 through share repurchases at an average price of $21.16 per share[13] - The company achieved a net income of $266 million in Q4 2025, representing a 57% increase year-over-year[38] - Earnings per share (EPS) for Q4 2025 was $0.52, a 73% increase compared to $0.30 in Q4 2024[38] Revenue and Income - Total revenue for 2025 was $3.42 billion, a 7% increase from $3.19 billion in 2024[38] - Noninterest income for 2025 was $797 million, an increase of $118 million, driven by fixed income revenue growth of $18 million and mortgage banking revenue improvement of $8 million[8] - Total revenue (FTE) for Q4 2025 was $892 million, an 8% increase from Q4 2024, with total revenue for 2025 reaching $3,434 million, up 4% from 2024[41] - Adjusted total noninterest income in Q4 2025 was $212 million, a 12% increase year-over-year, with total noninterest income for 2025 reaching $797 million, up 3% from 2024[41] Interest Income and Expenses - Net interest income (FTE) for 2025 was $2.6 billion, up $110 million, or 4%, with a net interest margin improvement to 3.47%, an increase of 12 basis points from the prior year[7] - Interest income decreased to $4,200 million from $4,367 million, a decline of 4%[15] - Interest expense for Q4 2025 was $375 million, a decrease of 7% compared to Q4 2024[55] - The cost of total deposits was 1.92% in Q4 2025, down 19 basis points from Q3 2025[55] Asset and Loan Growth - Average loan and lease balances increased by $0.6 billion to $62.6 billion, with period-end loans and leases at $64.2 billion, up $1.6 billion from the previous year[10] - Total assets increased by $684 million (1%) from Q3 2025 to $83,876 million, and by $1,725 million (2%) compared to Q4 2024[51] - Loans and leases, net of unearned income rose by $1,098 million (2%) quarter-over-quarter, reaching $64,156 million, and increased by $1,590 million (3%) year-over-year[51] - Average loans grew by 1% to $62.6 billion from $62.0 billion[15] Credit Quality and Losses - Provision for credit losses expense decreased to $65 million from $150 million in 2024, with net charge-offs consistent year-over-year at $120 million[12] - Net charge-offs increased to $120 million from $112 million, a rise of 7%[15] - The allowance for loan and lease losses decreased to $738 million in 4Q25, down 5% from $777 million in 3Q25 and down 9% from $815 million in 4Q24[62] - Total nonperforming loans and leases amounted to $604 million, showing no significant change from the previous quarter[57] Efficiency and Ratios - Efficiency ratio improved to 60.66% from 62.06%, a decrease of 140 basis points[15] - The CET1 ratio at year-end 2025 was 10.64%, down from 11.20% at the end of 2024, with total capital ratio at 13.4%[13] - The effective tax rate for 2025 was 22.1%, compared to 21.0% in 2024[14] - The adjusted efficiency ratio for Q4 2025 was 60.7%, slightly improved from 61.4% in Q4 2024[41] Segment Performance - Net income for the Wholesale segment was $35 million in 4Q25, down 10% from $39 million in 3Q25, but up 59% from $22 million in 4Q24[69] - The Corporate segment reported a net loss of $73 million in 4Q25, an improvement of 14% from a loss of $85 million in 3Q25[73] - Total revenue for the Wholesale segment reached $135 million in 4Q25, a slight increase of 1% compared to $134 million in 3Q25 and a 23% increase from $111 million in 4Q24[69] Deposits and Funding - Average deposits remained flat at $65.4 billion, while period-end deposits increased by 3% to $67.5 billion compared to year-end 2024[11] - Total deposits grew by $1,952 million (3%) from Q3 2025 to $67,477 million, and increased by $1,896 million (3%) compared to Q4 2024[51] - Noninterest-bearing deposits decreased by $200 million (1%) from Q3 2025 to $15,823 million, and by $198 million (1%) year-over-year[51]