Why Is First Horizon (FHN) Up 0.3% Since Last Earnings Report?

Core Viewpoint - First Horizon National's recent earnings report indicates a positive trend with adjusted earnings per share surpassing estimates, driven by increased net interest income and reduced expenses [2][3]. Financial Performance - Adjusted earnings per share for Q2 2025 were 45 cents, exceeding the Zacks Consensus Estimate of 41 cents and up from 36 cents in the same quarter last year [2]. - Net income available to common shareholders was $233 million, reflecting a 27% year-over-year increase [3]. - Total quarterly revenues reached $830 million, a 1.8% increase year-over-year, although it missed the Zacks Consensus Estimate by 0.9% [4]. - Net interest income rose nearly 2% year-over-year to $641 million, with the net interest margin increasing by 2 basis points to 3.40% [4]. Expense Management - Non-interest expenses decreased by 1.8% year-over-year to $491 million, attributed to declines in most cost components [5]. - The efficiency ratio improved to 59.20%, down from 61.44% in the prior year, indicating enhanced profitability [5]. Loan and Deposit Growth - Total loans and leases at period-end were $63.3 billion, up 1.7% from the previous quarter, while total deposits increased by 2.1% to $65.6 billion [6]. Credit Quality - Non-performing loans and leases rose by 3.3% year-over-year to $593 million, with the allowance for loan and lease losses decreasing by 0.8% to $814 million [7]. - Net charge-offs remained stable at $34 million year-over-year, and the provision for credit losses dropped 45% to $30 million [8]. Capital Ratios - As of June 30, 2025, the Common Equity Tier 1 ratio was stable at 11%, with the total capital ratio also remaining at 14% [9]. 2025 Outlook - Adjusted revenues are projected to be flat to a 4% increase from $3.28 billion in 2024, while adjusted non-interest expenses are expected to remain flat or rise by 2% from $1.98 billion [11]. - The net charge-off ratio is anticipated to be between 0.15-0.25%, reflecting credit normalization [11]. - The CET 1 ratio is expected to be between 10.5-11%, indicating modest loan growth [12].