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2 days ago
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Why Is First Horizon (FHN) Up 0.3% Since Last Earnings Report?
A month has gone by since the last earnings report for First Horizon National (FHN). Shares have added about 0.3% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is First Horizon due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. First Horizon Q2 Earnings Top Estimates as NII Rises, Expenses Decline First Horizon's second-quarter 2025 adjusted earnings per share (excluding notable items) of 45 cents surpassed the Zacks Consensus Estimate of 41 cents. This compares favorably with 36 cents in the year-ago quarter. Results benefited from a rise in net interest income and non-interest income, along with a decline in expenses. Also, lower provisions and a rise in loans and deposit balances were other positives. Net income available to its common shareholders (GAAP basis) was $233 million, up 27% year over year. Revenues Rise, Expenses Decline Total quarterly revenues were $830 million, which rose 1.8% year over year. Also, the top line missed the Zacks Consensus Estimate by 0.9%. NII increased nearly 2% year over year to $641 million. Additionally, the net interest margin increased 2 basis points from the prior-year quarter to 3.40%. Non-interest income was $189 million, up 1.6% from the year-ago level. Non-interest expenses decreased 1.8% year over year to $491 million. The fall was due to a decline in almost all cost components, except for occupancy and equipment costs, and salary and benefits. The efficiency ratio was 59.20%, down from the year-ago period's 61.44%. A fall in the efficiency ratio indicates a rise in profitability. Loans & Deposits Balances Increase Total period-end loans and leases, net of unearned income, were $63.3 billion, which increased 1.7% from the end of the previous quarter. Total period-end deposits of $65.6 billion rose 2.1%. Credit Quality: Mixed Bag Non-performing loans and leases of $593 million increased 3.3% from the prior-year period. As of June 30, 2025, the ratio of total allowance for loans and lease losses to loans and leases was 1.29%, down from 1.31% in the prior-year quarter. The allowance for loan and lease losses of $814 million fell 0.8% from the year-ago period. First Horizon witnessed net charge-offs of $34 million, which remained relatively flat on a year-over-year basis. Moreover, the provision for credit losses was $30 million, which plunged 45% from the year-earlier quarter. Capital Ratios Stable As of June 30, 2025, the Common Equity Tier 1 ratio of 11% was stable compared with the year-ago quarter. The total capital ratio was 14%, the same as the year-ago quarter level. The tier 1 leverage ratio was 10.6%, stable compared with the year-ago quarter level. 2025 Outlook Adjusted revenues are expected to be flat to rise 4% from the $3.28 billion reported in 2024. Adjusted non-interest expenses are expected to remain flat or rise 2% from the $1.98 billion reported in 2024, due to strong expense management in the first quarter and lower commissions in countercyclical fee businesses. The net charge-off ratio is anticipated to be 0.15-0.25% bps compared with the 2024 reported figure of 0.18%, reflecting continued credit normalization and the benefit of declining rates. The CET 1 ratio is envisioned to be 10.5-11%, reflecting expectations for modest loan growth in addition to opportunistic deployment of excess capital. The effective tax rate is forecast to be 21-23%. How Have Estimates Been Moving Since Then? In the past month, investors have witnessed a flat trend in estimates review. VGM Scores At this time, First Horizon has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Outlook First Horizon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Horizon Corporation (FHN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
16-07-2025
- Business
- Yahoo
Why First Horizon (FHN) Stock Is Up Today
What Happened? Shares of regional banking company First Horizon (NYSE:FHN) jumped 3.8% in the morning session after the company reported strong second-quarter financial results that surpassed Wall Street expectations. The Memphis-based bank announced earnings of $0.45 per share, which was a notable beat Consensus Estimate of $0.41 per share. This also represented a significant increase from the $0.36 per share reported in the same quarter a year ago. Revenue for the quarter came in at $834 million, also topping analyst forecasts of $826.6 million. The positive results were driven by solid growth in both loans and deposits. In a statement, President and CEO Bryan Jordan commented, "We are pleased with our strong performance this quarter, underscoring our unwavering commitment to safety and soundness, profitability and growth." After the initial pop the shares cooled down to $21.53, up 1.6% from previous close. Is now the time to buy First Horizon? Access our full analysis report here, it's free. What Is The Market Telling Us First Horizon's shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. First Horizon is up 7.6% since the beginning of the year, and at $21.53 per share, it is trading close to its 52-week high of $22.43 from February 2025. Investors who bought $1,000 worth of First Horizon's shares 5 years ago would now be looking at an investment worth $2,315. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-07-2025
- Business
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First Horizon (NYSE:FHN) Reports Q2 In Line With Expectations
Regional banking company First Horizon (NYSE:FHN) met Wall Street's revenue expectations in Q2 CY2025, with sales up 1.8% year on year to $830 million. Its non-GAAP profit of $0.45 per share was 8.2% above analysts' consensus estimates. Is now the time to buy First Horizon? Find out in our full research report. Net Interest Income: $641 million vs analyst estimates of $642.8 million (1.9% year-on-year growth, in line) Net Interest Margin: 3.4% vs analyst estimates of 3.4% (2 basis point year-on-year increase, in line) Revenue: $830 million vs analyst estimates of $827.7 million (1.8% year-on-year growth, in line) Efficiency Ratio: 59.2% vs analyst estimates of 60.5% (1.3 percentage point beat) Adjusted EPS: $0.45 vs analyst estimates of $0.42 (8.2% beat) Market Capitalization: $10.76 billion Tracing its roots back to 1864 during the Civil War era, First Horizon (NYSE:FHN) is a Tennessee-based bank holding company that provides commercial and consumer banking, wealth management, and specialty financial services across multiple states. In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Luckily, First Horizon's revenue grew at an impressive 10.4% compounded annual growth rate over the last five years. Its growth beat the average bank company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. First Horizon's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 6.3% over the last two years. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, First Horizon grew its revenue by 1.8% year on year, and its $830 million of revenue was in line with Wall Street's estimates. Net interest income made up 71.3% of the company's total revenue during the last five years, meaning lending operations are First Horizon's largest source of revenue. While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential. When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out. First Horizon's TBVPS grew at a solid 6.3% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 8.6% annually over the last two years from $11.50 to $13.57 per share. Over the next 12 months, Consensus estimates call for First Horizon's TBVPS to grow by 6.5% to $14.45, mediocre growth rate. Topline metrics such as net interest income and revenue were in line, but due to better operational efficiency, EPS beat. Zooming out, we think this was a solid quarter. The stock traded up 4.1% to $22.06 immediately after reporting. Is First Horizon an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-07-2025
- Business
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First Horizon Corporation Delivers Strong Second Quarter 2025 Results
Net Income Available to Common Shareholders of $233 Million with an EPS of $0.45, a $0.04 Increase from Prior Quarter; $229 Million or $0.45 on an Adjusted Basis, up $0.03 from Prior Quarter* MEMPHIS, Tenn., July 16, 2025 /PRNewswire/ -- First Horizon Corporation (NYSE: FHN or "First Horizon") today reported second quarter net income available to common shareholders ("NIAC") of $233 million or earnings per share of $0.45, compared with first quarter 2025 NIAC of $213 million or earnings per share of $0.41. Second quarter 2025 results were increased by $3 million after-tax of notable items compared to a decrease of $4 million in first quarter 2025. Excluding notable items, adjusted second quarter 2025 NIAC was $229 million or $0.45 per share compared to $217 million or $0.42 per share in first quarter 2025. "We are pleased with our strong performance this quarter, underscoring our unwavering commitment to safety and soundness, profitability and growth. Our results in the second quarter and first half of the year highlight the strengths of our business model and our geographic footprint," remarked President and CEO Bryan Jordan. "Our dedication to our clients and our deep expertise across our business lines ensure that we consistently deliver long-term value and strong outcomes for our shareholders, clients, communities and associates, regardless of economic conditions," Jordan continued. Conference Call Information Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on July 16, 2025, by dialing 1-833-470-1428 (if calling from the U.S.) or 404-975-4839 (if calling from outside the U.S) and entering access code 804399. The conference call will begin at 8:30 a.m. CT. Participants can also opt to listen to the live audio webcast at A replay of the call will be available beginning at noon CT on July 16 until midnight CT on July 30, 2025. To listen to the replay, dial 1-866-813-9403 (U.S. callers); the access code is 939343. A replay of the webcast will also be available on our website on July 16 and will be archived on the site for one year. Forward-Looking Statements This document and the complete 2Q2025 earnings release to which it relates contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to FHN's beliefs, plans, goals, expectations, and estimates. Forward-looking statements are not a representation of historical information, but instead pertain to future operations, strategies, financial results, or other developments. Forward-looking statements often use words such as "believe," "expect," "anticipate," "intend," "estimate," "should," "is likely," "will," "going forward," and other similar expressions that indicate future events and trends. Forward-looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, operational, economic, and competitive uncertainties and contingencies, many of which are beyond FHN's control, and many of which, with respect to future business decisions and actions (including acquisitions and divestitures), are subject to change and could cause FHN's actual future results and outcomes to differ materially from those contemplated or implied by forward-looking statements or historical performance. While there is no assurance that any list of uncertainties and contingencies is complete, examples of factors which could cause actual results to differ from those contemplated by forward-looking statements or historical performance include those mentioned: in this document; in Items 2.02 and 7.01 of FHN's Current Report on Form 8-K filed with the Securities and Exchange Commission on the date of this release; in the forepart, and in Items 1, 1A, and 7, of FHN's most recent Annual Report on Form 10-K; and in the forepart, and in Item 1A of Part II, of FHN's Quarterly Report(s) on Form 10-Q filed after that Annual Report. Any forward-looking statements made by or on behalf of FHN speak only as of the date they are made, and FHN assumes no obligation to update or revise any forward-looking statements that are made in this document or in any other statement, release, report, or filing from time to time. Actual results could differ and expectations could change, possibly materially, because of one or more factors, including those factors listed in this document or the documents mentioned above, and other factors not listed. Throughout this document and the complete 2Q2025 earnings release to which it relates, numbers may not total due to rounding, references to EPS are fully diluted, and capital ratios for the most recent quarter are estimates. Use of non-GAAP Measures and Regulatory Measures that are not GAAP Certain measures included in this document and the complete 2Q2025 earnings release to which it relates are "non-GAAP," meaning they are not presented in accordance with generally accepted accounting principles in the U.S. and also are not codified in U.S. banking regulations currently applicable to FHN. Although other entities may use calculation methods that differ from those used by FHN for non-GAAP measures, FHN's management believes such measures are relevant to understanding the financial condition, capital position, and financial results of FHN and its business segments. Non-GAAP measures are reported to FHN's management and Board of Directors through various internal reports. The non-GAAP measures presented in this document and the complete 2Q2025 earnings release to which it relates are fully taxable equivalent measures, pre-provision net revenue ("PPNR"), return on average tangible common equity ("ROTCE"), tangible common equity ("TCE") to tangible assets ("TA"), tangible book value ("TBV") per common share, and various consolidated and segment results and performance measures and ratios adjusted for notable items. Presentation of regulatory measures, even those which are not GAAP, provide a meaningful base for comparability to other financial institutions subject to the same regulations as FHN, as demonstrated by their use by banking regulators in reviewing capital adequacy of financial institutions. Although not GAAP terms, these regulatory measures are not considered "non-GAAP" under U.S. financial reporting rules as long as their presentation conforms to regulatory standards. Regulatory measures used in this financial supplement include: common equity tier 1 capital ("CET1"), generally defined as common equity less goodwill, other intangibles, and certain other required regulatory deductions; tier 1 capital, generally defined as the sum of core capital (including common equity and instruments that cannot be redeemed at the option of the holder) adjusted for certain items under risk based capital regulations; and risk-weighted assets, which is a measure of total on- and off-balance sheet assets adjusted for credit and market risk, used to determine regulatory capital ratios. Refer to the tabular reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items, beginning on page 20 of FHN's complete 2Q25 earnings release available at First Horizon Corporation (NYSE: FHN), with $82.1 billion in assets as of June 30, 2025, is a leading regional financial services company, dedicated to helping our clients, communities and associates unlock their full potential with capital and counsel. Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates in 12 states concentrated in the southern U.S. The Company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services. First Horizon has been recognized as one of the nation's best employers by Fortune and Forbes magazines and a Top 10 Most Reputable U.S. Bank. More information is available at *References to "adjusted" results exclude notable items and, along with return on tangible common equity, tangible book value per share, and certain other financial measures, are non-GAAP financial measures. All references to loans include leases. All references to earnings per share are based on diluted shares. Please see page 4 of FHN's complete 2Q25 earnings release available at for information on our use of non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 20 of that release. Contact: Investor Relations - Relations - View original content to download multimedia: SOURCE First Horizon Corporation Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
16-07-2025
- Business
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First Horizon: Q2 Earnings Snapshot
MEMPHIS, Tenn. (AP) — MEMPHIS, Tenn. (AP) — First Horizon National Corp. (FHN) on Wednesday reported second-quarter earnings of $240 million. The Memphis, Tennessee-based bank said it had earnings of 45 cents per share. The results exceeded Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 41 cents per share. The bank holding company posted revenue of $1.24 billion in the period. Its revenue net of interest expense was $834 million, also exceeding Street forecasts. Four analysts surveyed by Zacks expected $826.6 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on FHN at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
