Core Insights - First Horizon Corp reported fourth-quarter earnings of 52 cents per share, exceeding the analyst consensus estimate of 46 cents per share [1] - The company achieved quarterly sales of $888 million, surpassing the analyst consensus estimate of $859.343 million [1] Financial Performance - The fourth quarter performance was described as strong, contributing to an outstanding year for First Horizon, with consistent execution of strategy leading to significant earnings growth [2] - The stock price fell by 1.1% to $24.17 following the earnings announcement [2] Analyst Ratings and Price Targets - Keefe, Bruyette & Woods analyst Christopher McGratty maintained a Market Perform rating and raised the price target from $24 to $25 [3] - Stephens & Co. analyst Russell Gunther maintained an Overweight rating and increased the price target from $28 to $29 [3] - TD Cowen analyst Janet Lee maintained a Hold rating and raised the price target from $26 to $27 [3] - DA Davidson analyst Peter Winter maintained a Neutral rating and increased the price target from $25 to $27 [3]

Core Viewpoint - First Horizon Corporation reported strong earnings for Q4 2025, exceeding expectations with an EPS of $0.52 and revenue of approximately $869.5 million, indicating robust financial performance and positive outlook for 2026 [1][6]. Financial Performance - The net income available to common shareholders (NIAC) for 2025 increased by 29% to $956 million, translating to an EPS of $1.87, which is a 38% increase from the previous year's EPS of $1.36 [3][6]. - In Q4, the NIAC grew by 1% to $257 million, with an EPS of $0.52, and the adjusted NIAC was $259 million, reflecting a 2% increase from Q3 [4][6]. Strategic Initiatives - First Horizon's strong credit quality, limited exposure to commercial real estate, and stable deposit levels have contributed to its solid financial standing [2]. - The company's leadership expressed satisfaction with the strong Q4 performance, which capped off an outstanding year, and indicated a revenue growth forecast of 3% to 7% for 2026, along with an acceleration in loan growth [5][6]. Market Valuation - The company maintains a price-to-earnings (P/E) ratio of 11.8 times the estimated 2026 EPS, suggesting a fair market valuation [2].

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Core Viewpoint - First Horizon reported a strong finish to 2025, highlighting improved profitability metrics, solid loan and deposit trends, and substantial capital returns, while providing an optimistic outlook for 2026 with expected revenue growth and expense discipline [4]. Financial Performance - The company ended Q4 with earnings per share of $0.52, a net interest margin (NIM) of 3.51%, and 2% loan growth, benefiting from deposit pricing and loan growth in certain categories [3][6]. - Net interest income increased by approximately $2 million compared to the prior quarter, although NIM compressed by four basis points [2]. - The average interest-bearing deposit cost declined by 25 basis points to 2.53% [1]. Loan and Deposit Trends - Period-end loans increased by $1.1 billion, or 2%, from the prior quarter, with significant growth in loans to mortgage companies, which rose by $776 million [7]. - The company also reported broad-based strength in commercial and industrial lending, with a $727 million increase in the C&I portfolio [8]. Fee Income and Expenses - Fee income rose by $3 million from the prior quarter, primarily driven by service charges and elevated activity in the equipment finance lease business [9]. - Adjusted expenses increased by $4 million, with personnel expenses rising by $12 million due to annual bonus adjustments [10][11]. Credit Trends and Capital Return - Credit results remained stable, with net charge-offs increasing by $4 million to $30 million, and the net charge-off ratio at 19 basis points [14]. - The company ended the quarter with a Common Equity Tier 1 (CET1) ratio of 10.64%, having repurchased nearly $335 million of common shares in Q4 and a total of $894 million for 2025 [16][17]. 2026 Outlook - For 2026, management expects PPNR-driven revenue growth of 3%–7%, with NIM around the mid-340s and net charge-offs projected at 15–25 basis points [5][20]. - The company aims to deepen client relationships and invest in technology while maintaining efficiency and discipline [13][19].

Core Viewpoint - First Horizon Corporation has shown significant financial growth and a positive outlook from analysts, despite some cautious perspectives reflected in varying price targets Financial Performance - For the full year 2025, First Horizon's Net Income Available to Common Shareholders (NIAC) increased by 29% to $956 million, resulting in an Earnings Per Share (EPS) of $1.87 [3] - In Q4 2025, NIAC grew by 1% to $257 million, with an adjusted income of $259 million, reflecting a 2% increase from Q3 [4] Price Target Trends - The consensus price target for First Horizon's stock has gradually increased from $26.22 a year ago to $27.43 recently, indicating a positive analyst outlook [2][6] - J.P. Morgan analyst Steven Alexopoulos has set a lower price target of $20, reflecting a more cautious stance [2] Ownership and Analyst Ratings - First Horizon has a high level of insider and institutional ownership at 80.3%, suggesting strong confidence in the company's future [5][6] - The company has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings prospects [5]

Core Viewpoint - First Horizon Corporation (FHN) has shown strong performance over the past year, with a gain of approximately 15% [1] Company Positioning - The bank is well positioned with a strong presence in the Southeast region of the United States [1] - First Horizon has limited exposure to commercial real estate, which may mitigate certain risks [1]

Shares of First Horizon Corporation ( FHN ) have been a solid performer over the past year, gaining about 15%. The bank is well positioned with a strong footprint across the Southeast and with limited exposure to commercial real estate, thoughOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me ...

Core Insights - The company reported a strong fourth quarter with earnings per share of $0.52 and a net interest margin (NIM) of 3.512%, despite a four basis point compression in margin [2] - The company is optimistic about improving profitability and growth in 2026, with a focus on returning capital to shareholders while investing in growth opportunities [3][4] Financial Performance - Net interest income (NII) grew by approximately $2 million, driven by deposit pricing and strong loan growth, particularly in loans to mortgage companies, which increased by $767 million [2][5] - Average interest-bearing deposits decreased to 2.53% from 2.78%, with period-end balances increasing by $2 billion compared to the prior quarter [1][5] - The company returned nearly $900 million in stock repurchases and over $300 million in dividends in 2025 [4] Loan and Deposit Trends - Period-end loans increased by $1.1 billion or 2% from the prior quarter, with significant growth in the mortgage sector due to a pickup in refinancing activity [5][6] - The commercial real estate (CRE) portfolio saw a slight reduction in balances but an increase in commitments, indicating positive momentum entering 2026 [6] Expense Management - Adjusted expenses, excluding deferred compensation, increased by $4 million, with personnel expenses rising due to incentives and commissions [7] - The company expects expenses to remain flat in 2026, with a focus on managing costs while investing in technology and personnel [10][61] Credit Quality - Net charge-offs increased to $30 million, with a net charge-off ratio of 19 basis points, aligning with expectations [8] - The allowance for credit losses (ACL) to loan ratio declined to 1.31%, reflecting improvements across the commercial portfolio [8] Capital Management - The company ended the quarter with a Common Equity Tier 1 (CET1) ratio of 10.64%, with plans to maintain a target range of 10.5% to 10.75% [8][12] - A new repurchase program of $1.2 billion was announced, with nearly $1 billion of authorization remaining [10][9] Outlook and Growth Strategy - The company anticipates year-over-year PPNR growth with total revenue expectations ranging from 3% to 7% in 2026 [10] - Continued improvements in market conditions for fixed income and mortgage lines of business are expected to drive higher revenues [11] - The company is focused on deepening client relationships and enhancing product offerings to achieve sustainable growth [16]

Financial Data and Key Metrics Changes - The company reported earnings per share of $0.52 for Q4 2025, with a net interest margin of 3.51% and 2% loan growth [8] - Pre-provision net revenue and return on tangible common equity reached 15% in the second half of 2025 [5][6] - Net interest income grew by approximately $2 million, with a net interest margin compression of four basis points, but an expansion of two basis points when excluding notable items [8][9] Business Line Data and Key Metrics Changes - Loans to mortgage companies increased by $776 million quarter over quarter, contributing significantly to loan growth [10] - The commercial and industrial (C&I) portfolio saw a period-end balance increase of $727 million from the prior quarter [10] - Fee income increased by $3 million from the prior quarter, driven by elevated activity in equipment finance lease businesses [11] Market Data and Key Metrics Changes - Period-end balances for deposits increased by $2 billion compared to the prior quarter, with the average rate paid on interest-bearing deposits decreasing to 2.53% [9] - The cumulative deposit beta has been maintained at 64% since rates began to fall in September 2024 [9] - The company expects mid-single-digit balance sheet growth and total revenue growth of 3%-7% year-over-year for 2026 [12][13] Company Strategy and Development Direction - The company aims to deepen client relationships and enhance profitability through treasury management and wealth management services [18] - A strategic plan has been distilled into a five-page framework to clarify differentiation in the marketplace and foster long-lasting client relationships [16] - The focus remains on expense discipline while investing in technology and personnel to enhance operational efficiency [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving profitability and continued earnings growth in 2026, citing positive signs in loan growth pipelines [7][16] - The company is confident in its diverse business model and robust footprint to meet revenue growth targets across various economic scenarios [17] - Management highlighted the importance of macroeconomic conditions and the Fed's balance sheet in determining deposit pricing and growth [35] Other Important Information - The company returned just under $900 million in capital through stock repurchases and over $300 million in dividends in 2025 [6] - A new repurchase program of $1.2 billion was announced at the end of October, with nearly $1 billion of authorization remaining [12] Q&A Session Summary Question: Revenue outlook and key drivers - Management indicated that the revenue outlook of 3%-7% growth is based on the current forward curve, with loan growth being a significant factor [21][22] Question: Expense growth normalization - Management expects expenses to align with inflation, estimating a growth rate of 2.5%-3% in the absence of heavy tech investments [23][24] Question: Loan growth expectations across products - Management anticipates mid-single-digit loan growth, with positive momentum in C&I and mortgage warehouse lending [29][31] Question: Net interest income trajectory - Management expects net interest income growth to be in the low single digits, influenced by deposit betas and loan growth [42][44] Question: M&A considerations - Management is open to small acquisitions to enhance the branch franchise but prioritizes organic growth and profitability [50][51] Question: Credit quality and reserve outlook - Management is confident in current reserve levels and expects net charge-offs to remain stable, reflecting strong credit performance [61][107]

Financial Data and Key Metrics Changes - The company reported earnings per share of $0.52 for Q4 2025, with a net interest margin of 3.51% and 2% loan growth [8][9] - Pre-provision net revenue and return on tangible common equity reached 15% in the second half of 2025, with net interest income growth of approximately $2 million [5][6] - The average interest-bearing cost of deposits decreased by 25 basis points, contributing to improved profitability [8][9] Business Line Data and Key Metrics Changes - Loans to mortgage companies increased by $776 million quarter-over-quarter, driven by a pickup in the refinance market [9][10] - The commercial and industrial (C&I) portfolio saw a $727 million increase in period-end balances, indicating strong origination volume [10] - Fee income increased by $3 million from the prior quarter, primarily due to elevated activity in equipment finance lease businesses [10] Market Data and Key Metrics Changes - Period-end balances for deposits increased by $2 billion compared to the prior quarter, with the average rate paid on interest-bearing deposits decreasing to 2.53% [9][10] - The company maintained a cumulative deposit beta of 64% since rates began to fall in September 2024 [9] Company Strategy and Development Direction - The company aims to continue returning capital to shareholders while investing in growth opportunities, with a focus on improving profitability and earnings growth in 2026 [7][16] - Strategic priorities include serving clients well, growing profitable relationships, and delivering on financial objectives, with an emphasis on deepening client relationships and enhancing product offerings [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ability to improve profitability and grow earnings in 2026, citing positive signs in current pipelines, especially in commercial lending [16][17] - The company expects year-over-year PPNR growth with mid-single-digit balance sheet growth and positive operating leverage [12][13] Other Important Information - The company ended the quarter with a CET1 ratio of 10.64%, with plans for a new repurchase program of $1.2 billion [12][13] - Management highlighted the importance of expense discipline and efficiency while continuing to invest in technology and personnel [17][18] Q&A Session Summary Question: Revenue outlook and key drivers - Management indicated that the revenue outlook of 3%-7% growth is based on the current forward curve, with loan growth being a significant factor [21][22] Question: Expense growth normalization - Management expects expenses to align with inflation, estimating a growth rate of 2.5%-3% in the absence of heavy tech investments [23][24] Question: Loan growth expectations - Management anticipates mid-single-digit loan growth, with strong momentum in C&I and mortgage warehouse lending [29][31] Question: Net interest income trajectory - Management expects net interest income growth to be in the low single digits, influenced by deposit betas and loan growth [42][44] Question: M&A considerations - Management is open to small acquisitions to enhance the branch franchise but prioritizes organic growth and profitability [50][51] Question: Credit quality and reserves - Management is confident in current reserve levels and expects net charge-offs to remain stable, reflecting strong credit performance [57][61]