Can First Horizon Sustain Its Revenue Growth After a Strong 2025?

Core Insights - First Horizon Corporation (FHN) reported strong revenue growth in 2025, with net revenues of $3.42 billion, reflecting a 7% year-over-year increase [1][9] - The company's revenue growth is supported by solid loan expansion, rising net interest income (NII), and improving fee-based income, with a focus on organic growth and disciplined balance sheet management [1][3] Revenue Growth Drivers - NII, the primary contributor to revenues, has shown resilience with a six-year compound annual growth rate (CAGR) of 13.8% ending in 2025, driven by lower deposit pricing and higher loan balances [2][9] - Loans and leases experienced a CAGR of 12.9% from 2019 to 2025, while deposits grew at a CAGR of 13% during the same period, supported by acquisitions and a diversified loan portfolio [3][4] Future Outlook - Management anticipates continued loan growth, particularly in the commercial and industrial portfolio, alongside steady mortgage lending activity, with deposit balances expected to rise due to promotional and non-interest-bearing deposits [4][5] - For 2026, FHN expects adjusted revenues to increase by 3-7% from the $3.42 billion reported in 2025, with Zacks Consensus Estimates projecting sales at $3.6 billion, indicating a 4.5% year-over-year rise [7][9] Non-Interest Income - Non-interest income has also been a key revenue component, with a CAGR of 3.4% over the last six years, bolstered by growth in fixed income and mortgage banking revenue in 2025 [6][9] - As FHN expands its client base and grows deposits and loans, fee income from deposit account services and lending activities is expected to increase further [6]