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First Horizon (FHN)
NYSE:FHN
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First Horizon (FHN) AI Stock Analysis

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FHN

First Horizon

(NYSE:FHN)

Rating:76Outperform
Price Target:
$24.50
â–²(8.60%Upside)
First Horizon's stock is supported by strong technical indicators and favorable corporate events. Financial performance remains solid, though revenue growth and cash flow optimization are areas to watch. The valuation is reasonable, with the earnings call providing a balanced outlook.
Positive Factors
Earnings
First Horizon-FHN shares outperformed after EPS topped estimates, driven by lower expenses and provisions.
Loan Growth
FHN is well positioned to capitalize on rebounding loan growth, including a pick-up in mortgage activity if longer-term rates decline.
Operating Profits
Management identified $100mn of incremental pre-tax operating profits on top of their existing business without additional spending necessary.
Negative Factors
Credit Trends
Credit trends remained solid, but FHN increased reserves due to broader macro uncertainty.
Deposit Competition
Growing deposit competition is highlighted, aligning with broader trends, and impacts are seen with customer deposits down 0.3%.

First Horizon (FHN) vs. SPDR S&P 500 ETF (SPY)

First Horizon Business Overview & Revenue Model

Company DescriptionFirst Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through three segments: Regional Banking, Specialty Banking, and Corporate. It offers general banking services for consumers, businesses, financial institutions, and governments. The company also underwrites bank-eligible securities and other fixed-income securities eligible for underwriting by financial subsidiaries; sells loans and derivatives; and offers advisory services. In addition, it offers various services, such as mortgage banking; title insurance and loan-closing; brokerage; correspondent banking; nationwide check clearing and remittance processing; trust, fiduciary, and agency; equipment finance; and investment and financial advisory services. Further, the company sells mutual fund and retail insurance products; and credit cards. It operates approximately 500 banking offices in 22 states under the First Horizon Bank brand; and 400 banking centers in 12 states under the FHN Financial brand in the United States. The company was formerly known as First Horizon National Corporation and changed its name to First Horizon Corporation in November 2020. First Horizon Corporation was founded in 1864 and is headquartered in Memphis, Tennessee.
How the Company Makes MoneyFirst Horizon makes money through a variety of revenue streams primarily centered around traditional banking services. It earns interest income from loans provided to individuals and businesses, such as mortgages, personal loans, and commercial loans. The company also generates non-interest income through fees for services such as asset management, investment banking, and transaction processing. Additionally, First Horizon benefits from interchange fees and other charges associated with its credit and debit card offerings. Key partnerships with financial technology firms and collaborations with regional businesses further enhance its revenue-generating capabilities. Overall, the company's earnings are influenced by interest rate environments, economic conditions, and regulatory factors that impact the banking industry.

First Horizon Earnings Call Summary

Earnings Call Date:Jul 16, 2025
(Q2-2025)
|
% Change Since: 6.31%|
Next Earnings Date:Oct 15, 2025
Earnings Call Sentiment Neutral
First Horizon demonstrated strong profitability and growth in its loan portfolio and credit stability. However, challenges such as net interest margin compression, decreased fee income, and increased deposit competition present notable obstacles. The overall sentiment reflects a balanced view with both positive growth aspects and areas needing attention.
Q2-2025 Updates
Positive Updates
Strong Profitability and Growth
First Horizon reported an adjusted EPS of $0.45, which was a $0.03 increase from the prior quarter. The company achieved pre-provision net revenue growth of $4 million and net interest income growth of $10 million, driven by loan portfolio expansion.
Credit Portfolio Stability
The charge-off ratio remained stable at 22 basis points, with a 3 basis point decline in coverage for credit losses. Nonperforming CRE loans were reduced, contributing to a strong credit portfolio.
Balance Sheet Expansion
Period-end balances for both loans and deposits increased by 2% quarter-over-quarter, with significant growth in loans to mortgage companies and C&I portfolio.
High Retention Rate for Deposits
The company retained approximately 95% of the $23 billion in balances associated with clients who had a repricing event in the quarter.
Capital Management and Repurchase Authorization
First Horizon maintained capital levels with a CET1 of 11% and used $9 million of its $1 billion share repurchase authorization.
Negative Updates
Net Interest Margin Compression
Net interest margin compressed by 2 basis points to 3.40%, driven by a 4 basis point increase in interest-bearing deposit costs.
Fee Income Decrease
Fee income decreased by $3 million from the prior quarter, with ADR declining by 6% amidst a less favorable environment.
Increased Deposit Competition
Deposit competition increased, leading to a slight uptick in deposit costs. The average rate paid on interest-bearing deposits increased to 2.76%.
CRE Balances Decline
CRE balances continued to decline due to payoffs of stabilized projects and nonperforming CRE loans.
Company Guidance
In the Second Quarter 2025 Earnings Conference Call for First Horizon, the bank reported an adjusted EPS of $0.45, marking a $0.03 increase from the previous quarter. They achieved a $10 million growth in net interest income, primarily driven by a 2% quarter-over-quarter rise in period-end balances for both loans and deposits. The bank maintained expense discipline, with total expenses increasing by only $4 million excluding deferred compensation. They reported a net charge-off ratio of 22 basis points, consistent with expectations, and a slight decline in their allowance for credit losses to 1.42%. First Horizon's capital levels remained aligned with their target of 11% CET1, with over half of their $1 billion share repurchase authorization still available after utilizing $9 million in the second quarter. The bank reiterated its goal of achieving PPNR growth and maintained their full-year guidance, expecting to drive towards a 15% return on tangible common equity (ROTCE) over the next 2 to 3 years.

First Horizon Financial Statement Overview

Summary
First Horizon demonstrates sound financial health with strong profitability and operational efficiency. However, the slight decline in total revenue and free cash flow compared to the previous year indicates a need for focus on revenue growth strategies.
Income Statement
78
Positive
First Horizon shows solid profitability with a consistent Gross Profit Margin and a Net Profit Margin of 16.5% for TTM (Trailing-Twelve-Months). However, there's a slight decline in Total Revenue on a TTM basis when compared to the previous year, indicating a need to focus on revenue growth strategies. The EBIT and EBITDA margins are healthy, reflecting strong operational efficiency.
Balance Sheet
70
Positive
The company's balance sheet is relatively stable with a Debt-to-Equity Ratio of 0.63, indicating moderate leverage. The Equity Ratio of 10.7% suggests a solid capital structure, though there's room for improvement in equity funding. The Return on Equity (ROE) is 9.2%, highlighting reasonable returns on shareholders' investments.
Cash Flow
75
Positive
First Horizon's cash flow is robust with a Free Cash Flow to Net Income Ratio of 0.92, indicating strong cash generation relative to profits. However, the Free Cash Flow has declined compared to the previous year, reflecting potential areas for cash flow optimization. The Operating Cash Flow to Net Income Ratio of 0.97 shows efficient cash operations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.94B4.71B3.41B3.15B2.80B
Gross Profit2.95B2.90B3.02B3.30B2.06B
EBITDA1.11B1.23B1.24B1.33B995.00M
Net Income775.00M897.00M900.00M999.00M845.00M
Balance Sheet
Total Assets82.15B81.66B78.95B89.09B84.21B
Cash, Cash Equivalents and Short-Term Investments8.94B10.73B11.28B24.76B17.60B
Total Debt4.59B3.70B4.10B3.71B3.87B
Total Liabilities73.04B72.37B70.41B80.60B75.90B
Stockholders Equity8.82B9.00B8.25B8.20B8.01B
Cash Flow
Free Cash Flow1.22B1.26B2.26B672.00M114.00M
Operating Cash Flow1.27B1.30B2.31B725.00M172.00M
Investing Cash Flow-1.06B-2.60B8.33B-4.60B-4.97B
Financing Cash Flow-404.00M1.49B-10.87B4.02B5.18B

First Horizon Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22.56
Price Trends
50DMA
20.61
Positive
100DMA
19.46
Positive
200DMA
19.46
Positive
Market Momentum
MACD
0.57
Negative
RSI
67.84
Neutral
STOCH
79.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FHN, the sentiment is Positive. The current price of 22.56 is above the 20-day moving average (MA) of 21.76, above the 50-day MA of 20.61, and above the 200-day MA of 19.46, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 67.84 is Neutral, neither overbought nor oversold. The STOCH value of 79.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FHN.

First Horizon Risk Analysis

First Horizon disclosed 111 risk factors in its most recent earnings report. First Horizon reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

First Horizon Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$9.87B15.337.18%2.22%9.69%3.47%
79
Outperform
$10.34B12.489.49%2.60%4.65%7.12%
76
Outperform
$11.38B14.519.57%2.66%-2.92%28.87%
74
Outperform
$8.57B15.5016.36%1.70%14.15%17.71%
74
Outperform
$13.45B6.849.43%0.10%-0.86%13.17%
71
Outperform
$7.96B5.3028.17%5.36%-35.65%70.23%
64
Neutral
$6.69B10.967.19%189.54%24.10%5.12%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FHN
First Horizon
22.56
6.73
42.51%
CBSH
Commerce Bancshares
62.66
3.02
5.06%
GGAL
Grupo Financiero Galicia SA
49.25
21.94
80.34%
WBS
Webster Financial
61.84
16.88
37.54%
WF
Woori Finance Holdings Co
55.53
23.78
74.90%
SSB
SouthState Corporation
97.22
7.52
8.38%

First Horizon Corporate Events

Business Operations and StrategyFinancial Disclosures
First Horizon Reports Strong Q2 2025 Financial Results
Positive
Jul 16, 2025

On July 16, 2025, First Horizon Corporation reported strong financial results for the second quarter of 2025, with a net income available to common shareholders of $233 million and an earnings per share of $0.45, marking an increase from the previous quarter. The company’s performance highlights its commitment to safety, soundness, profitability, and growth, with notable improvements in net interest income, noninterest income, and loan portfolio growth. The results underscore the company’s strategic focus and operational strengths, positively impacting its industry positioning and stakeholder value.

The most recent analyst rating on (FHN) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on First Horizon stock, see the FHN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 17, 2025