First Horizon Stock Slides as Regional Bank Lowers Outlook, Earnings Miss

Core Insights - First Horizon Corp. shares declined after reporting second-quarter results that fell short of analysts' expectations, primarily due to a decrease in net interest income (NII) [1][5] - The company reported NII of $629 million, slightly down from $631 million year-over-year and below the projected $636 million [2] - Revenue decreased to $815 million from $1.03 billion last year, also missing estimates [2] Financial Performance - Net income for First Horizon fell to $204 million from $329 million last year, which was below the expected $212 million [6] - Earnings per share were reported at $0.34, narrowly missing the anticipated $0.36 [6] Outlook and Industry Context - First Horizon has lowered its full-year NII outlook, now projecting a decrease of 2% to flat compared to the fiscal 2023 mark of $2.56 billion, down from previous estimates of a 1% to 4% increase [7] - The broader banking industry has reported lower NII due to rising deposit costs, which have offset the benefits of higher interest rates on loan payments [3][4]