First Horizon National (FHN)
NYSE:FHN
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First Horizon
(NYSE:FHN)
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Rating:66Neutral
Price Target:
$27.00
â–²(11.16% Upside)
Action:Downgraded
Date:05/10/26
The score is primarily held back by weakening top-line/cash-flow momentum and a meaningful increase in leverage, despite solid profitability. Offsetting positives include constructive (but not strong) technicals, attractive valuation, and an earnings update showing sustained ROTCE strength and maintained guidance, tempered by deposit and capital headroom risks.
Positive Factors
Sustained high ROTCE
Three consecutive quarters of adjusted ROTCE ≥15% indicates durable capital efficiency and disciplined underwriting. High ROTCE supports consistent internal capital generation, funds buybacks/dividends, and signals competitive returns on core banking activities over the next several quarters.
Negative Factors
Marked increase in leverage
A sharp rise in debt-to-equity materially increases financial leverage and balance-sheet risk. Higher leverage elevates sensitivity to funding costs and macro shocks, constraining strategic flexibility and increasing the probability of needing further capital or asset adjustments over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained high ROTCE
Three consecutive quarters of adjusted ROTCE ≥15% indicates durable capital efficiency and disciplined underwriting. High ROTCE supports consistent internal capital generation, funds buybacks/dividends, and signals competitive returns on core banking activities over the next several quarters.
Read all positive factors
First Horizon Key Performance Indicators (KPIs)
Any
Revenue By Segment
Shows how different business units contribute to total revenue, highlighting areas of strength and potential growth within the company.
Shows how different business units contribute to total revenue, highlighting areas of strength and potential growth within the company.
Data provided by:
The Fly
The FlyFirst Horizon (FHN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.26B
Dividend Yield2.44%
Average Volume (3M)4.57M
Price to Earnings (P/E)10.4
Beta (1Y)1.20
Revenue Growth1.24%
EPS Growth39.59%
CountryUS
Employees7,200
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.02
Shares Outstanding474,617,800
10 Day Avg. Volume3,380,464
30 Day Avg. Volume4,574,688
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)1.33
Price to Sales (P/S)2.35
P/FCF Ratio12.29
Enterprise Value/Market Cap2.02
Enterprise Value/Revenue4.95
Enterprise Value/Gross Profit6.70
Enterprise Value/Ebitda16.32
Forecast
1Y Price Target
$26.80Price Target Upside10.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)2.14
Revenue Forecast (FY)$3.56B
First Horizon Business Overview & Revenue Model
Company Description
First 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 bank...
How the Company Makes Money
First Horizon primarily makes money through banking spread income and fee-based financial services. A major revenue stream is net interest income: the company collects interest and fees on loans (such as commercial loans, consumer lending, and rea...
First Horizon Earnings Call Summary
Earnings Call Date:Apr 15, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 22, 2026
Earnings Call Sentiment Positive
The call conveyed solid operating momentum and improved profitability — highlighted by a 15.1% adjusted ROTCE, 6% YoY NII growth, strong C&I loan growth, expense discipline, and constructive capital actions — balanced against manageable headwinds including deposit competition, CRE balance headwinds, quarter-to-quarter fee income volatility, and mortgage/refi uncertainty. Management emphasized disciplined underwriting, targeted capital deployment, and maintaining guidance while noting market volatility risks.Positive Updates
Sustained Strong Profitability (Adjusted ROTCE)
Adjusted ROTCE of 15.1% for the quarter — third consecutive quarter above 15% and up over 200 basis points year over year, demonstrating improved return on capital.
Negative Updates
Quarterly Deposit Decline and Brokered Outflows
Period-end deposits decreased by $1.0 billion quarter over quarter, driven primarily by reductions in brokered deposits, creating near-term funding and liquidity movement.
Read all updates
Q1-2026 Updates
Positive
Negative
Sustained Strong Profitability (Adjusted ROTCE)
Adjusted ROTCE of 15.1% for the quarter — third consecutive quarter above 15% and up over 200 basis points year over year, demonstrating improved return on capital.
Read all positive updates
Company Guidance
First Horizon maintained its full-year outlook, guiding revenue growth of 3%–7% while keeping expenses roughly flat year‑over‑year (with quarter-to-quarter variability), and reiterated a near‑term CET1 target of 10.5% while noting they believe they can operate below that over time; key metrics cited include adjusted ROTCE of 15.1% (third straight quarter ≥15%), ROAA 1.3% (+19 bps YoY), EPS $0.53 (+$0.11 YoY), NII up 6% YoY versus loan growth of 3% YoY, adjusted PPNR +8% YoY, loan balances +$21M q/q with core C&I +$624M in Q1 (loans to mortgage companies -$62M q/q, with a seasonal Q2 bounce expected), period‑end deposits -$1B q/q, average interest‑bearing deposit rate 2.28% (from 2.53% prior quarter) with a spot rate of 2.27% and a cumulative deposit beta of 69% since Sept 2024, net charge‑offs $29M (18 bps) with a $15M provision and ACL-to-loans ~1.28% (≈7x recent avg NCOs), CET1 10.53% and Tier 1 11.95% after issuing $400M Series H preferred, ~$230M of common buybacks in the quarter (≈$765M remaining authorization), tangible book $14.34 (+9% YoY), an ADR of 742k (‑q/q, +27% YoY), NIM expected in the high‑3.40s near term, ~ $6–7B of assets repricing in 2026 (≈$1B securities, >$5B fixed‑rate loans), and a $100M+ incremental PPNR opportunity driven by deeper relationship penetration (CRE pricing, treasury and wealth initiatives) already being realized.First Horizon Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
55
Neutral
Cash Flow
50
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.60B | 4.99B | 4.94B | 4.71B | 3.41B | 3.15B |
| Gross Profit | 3.40B | 3.36B | 2.95B | 2.90B | 3.02B | 3.30B |
| EBITDA | 1.40B | 1.34B | 1.11B | 1.23B | 1.24B | 1.33B |
| Net Income | 1.03B | 983.00M | 775.00M | 897.00M | 900.00M | 999.00M |
Balance Sheet | ||||||
| Total Assets | 84.13B | 83.88B | 82.15B | 81.66B | 78.95B | 89.09B |
| Cash, Cash Equivalents and Short-Term Investments | 3.82B | 4.62B | 8.94B | 10.73B | 11.28B | 24.76B |
| Total Debt | 13.28B | 4.57B | 4.59B | 3.70B | 4.10B | 3.71B |
| Total Liabilities | 74.67B | 74.73B | 73.04B | 72.37B | 70.41B | 80.60B |
| Stockholders Equity | 9.17B | 8.85B | 8.82B | 9.00B | 8.25B | 8.20B |
Cash Flow | ||||||
| Free Cash Flow | 893.00M | 955.00M | 1.22B | 1.26B | 2.26B | 672.00M |
| Operating Cash Flow | 899.00M | 988.00M | 1.27B | 1.30B | 2.29B | 725.00M |
| Investing Cash Flow | -2.35B | -1.45B | -1.06B | -2.60B | 8.33B | -4.60B |
| Financing Cash Flow | 1.45B | 524.00M | -404.00M | 1.49B | -10.87B | 4.02B |
First Horizon Technical Analysis
Neutral
24.29
Price Trends
23.55
Positive
23.92
Negative
22.90
Positive
Market Momentum
-0.08
Positive
43.45
Neutral
18.86
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FHN, the sentiment is Neutral. The current price of 24.29 is below the 20-day moving average (MA) of 24.33, above the 50-day MA of 23.55, and above the 200-day MA of 22.90, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 43.45 is Neutral, neither overbought nor oversold. The STOCH value of 18.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $9.91B | 10.27 | 11.93% | 1.40% | 6.64% | 17.78% | |
78 Outperform | $9.64B | 8.21 | 11.67% | 1.37% | 41.57% | 41.57% | |
74 Outperform | $9.07B | 10.09 | 10.42% | 2.38% | 49.78% | 46.17% | |
72 Outperform | $11.62B | 11.24 | 10.80% | 2.49% | 5.84% | 37.42% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $11.26B | 10.38 | 11.43% | 2.44% | 1.24% | 39.59% | |
61 Neutral | $8.36B | 10.15 | 12.88% | 1.80% | 10.29% | 17.94% |
* Financial Sector Average
FHN
First Horizon
23.59
4.70
24.89%
UMBF
UMB Financial
125.87
24.99
24.77%
WBS
Webster Financial
71.71
22.18
44.79%
WTFC
Wintrust Financial
146.30
29.94
25.73%
WAL
Western Alliance
76.11
5.68
8.07%
SSB
SouthState Corporation
92.03
6.33
7.39%
First Horizon Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
First Horizon Shareholders Back Board, Governance Adjustments
Positive
Apr 29, 2026
On April 27, 2026, First Horizon’s board unanimously amended its bylaws to set the board size at 14 directors until the 2026 annual shareholders’ meeting and 12 directors thereafter, signaling a move toward a leaner governance structur...
Stock BuybackFinancial DisclosuresPrivate Placements and Financing
First Horizon posts robust first-quarter 2026 financial results
Positive
Apr 15, 2026
First Horizon reported strong first-quarter 2026 results on April 15, 2026, with net income available to common shareholders of $257 million, up 21% year over year, and diluted earnings per share of $0.53 versus $0.41 in the first quarter of 2025....
Private Placements and FinancingRegulatory Filings and Compliance
First Horizon Issues Series H Preferred Depositary Shares
Positive
Mar 12, 2026
On March 6, 2026, First Horizon Corporation filed Articles of Amendment to its Amended and Restated Charter with the Tennessee Secretary of State, formally establishing the preferences, limitations and relative rights of its Non-Cumulative Perpetu...
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.