Core Viewpoint - Goldman Sachs has raised the price target for First Horizon (FHN) to $27 from $24 while maintaining a Neutral rating on the shares [1] Group 1: Market Performance - Regional banks underperformed the market by 200-300 basis points in 2025 due to macro concerns and credit worries [1] - Despite the underperformance, stocks rallied 13% late in the year [1] Group 2: Future Outlook - For 2026, solid loan growth, net interest income momentum, positive operating leverage, and improving returns are expected to support continued multi-year fundamental improvement [1] - Credit risk is identified as the main wildcard affecting future performance [1]

Core Insights - BOK Financial Corporation (BOKF) shares have increased by 17.9% over the past six months, significantly outperforming the industry growth of 3% and its peers, First Horizon Corporation (FHN) and Cullen/Frost Bankers, Inc. (CFR) [1][8] Performance Overview - The Zacks Consensus Estimate for BOKF's earnings for 2025 and 2026 has been revised upward, indicating a 1.1% and 7.7% rise respectively, reflecting analyst optimism about the company's future earnings [4][5][8] Growth Drivers - BOKF has experienced stable organic growth with a compound annual growth rate (CAGR) of 2% in loans over the six years ending in 2024, supported by a diversified business model and increased lending activity [9] - Deposits have also shown consistent growth, achieving a CAGR of 7.1% over the same period, bolstered by a balanced mix of commercial, consumer, wealth, and small business deposits [12] - The company expects loan growth of 5–7% in 2025, compared to $24.1 billion reported at the end of 2024, driven by a strong loan pipeline and rising deposit balances [15][16] Financial Metrics - BOKF's net interest income (NII) has benefited from higher interest rates, achieving a four-year CAGR of 2.8% through 2024, with continued growth in the first nine months of 2025 [17] - Despite a decline in net interest margin (NIM) to 2.75% in 2024 from 2.93% in 2023, NIM showed modest expansion in the first nine months of 2025 due to easing funding costs and improved asset yields [18] Asset Quality - The company has demonstrated strong improvement in asset quality, with non-performing assets declining at a CAGR of 24.6% over the five years ending in 2024, continuing to decline in the first nine months of 2025 [20] - Net charge-offs have recorded a five-year negative CAGR of 40.9% through 2024, indicating a resilient balance sheet capable of navigating potential economic slowdowns [21] Strategic Expansion - BOKF has strategically expanded into key neighboring markets, including a new office in Memphis, TN, and an expansion into the San Antonio market, enhancing its competitive standing [22][23] Capital Distribution - The company has a disciplined capital distribution strategy, raising its quarterly dividend by 3.6% to 57 cents per share in October 2024, with a current dividend yield of 2.11% [24][28] Near-Term Concerns - Rising operating expenses have recorded a CAGR of 3.4% over the six years ended 2024, expected to remain elevated due to ongoing investments in technology and higher employee-related compensation [29] - The company's liquidity position is relatively low compared to its elevated debt levels, with total debt of $4.2 billion against cash and equivalents of $1.4 billion as of September 30, 2025 [30] Valuation - BOKF stock is currently trading at a 12-month trailing price-to-earnings (P/E) ratio of 13.34X, higher than the industry's 12.98X, indicating a premium valuation [31] Conclusion - Despite near-term concerns, BOKF's consistent loan and deposit growth, improving asset quality, and favorable earnings estimate revisions suggest a well-run, growth-oriented bank with strong fundamentals and shareholder-friendly policies [34]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1][13] - The energy demands of AI technologies are highlighted, with data centers consuming as much energy as small cities, leading to concerns about power grid strain and rising electricity prices [2][3] Investment Opportunity - A specific company is presented as a critical player in the AI energy sector, owning essential energy infrastructure assets that are poised to benefit from the increasing energy demands of AI [3][7] - This company is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and positioned to capitalize on the onshoring trend driven by tariffs [5][6] Financial Position - The company is noted for being debt-free and holding a significant cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened by debt [8][10] - It also has a substantial equity stake in another AI-related company, providing investors with indirect exposure to multiple growth opportunities without the associated premium costs [9][10] Market Trends - The article discusses the broader trends of AI, energy, tariffs, and onshoring, emphasizing the interconnectedness of these sectors and the company's strategic positioning within them [6][14] - The influx of talent into the AI sector is mentioned, indicating a continuous stream of innovation and advancements that will drive future growth [12] Future Outlook - The potential for significant returns is highlighted, with projections suggesting a possible 100% return within 12 to 24 months for investors who act now [15][19] - The company is characterized as undervalued, trading at less than seven times earnings, which is considered an attractive entry point for investors [10][11]

Core Insights - First Horizon Bank has appointed Justin Rutledge as the Charlotte Market President, focusing on client growth, associate engagement, and community service [1][2]. Company Overview - First Horizon Corporation has $83.2 billion in assets as of September 30, 2025, and operates in 12 states, primarily in the southern U.S. [4] - The bank offers a wide range of services including commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking [4]. - First Horizon has received recognition as one of the nation's best employers by Fortune and Forbes magazines and is listed as a Top 10 Most Reputable U.S. Bank [4]. Leadership and Strategy - Justin Rutledge brings over 20 years of banking experience, having previously served as the Charlotte Market President for Truist and held various roles in Mortgage, Commercial Banking, and Middle Market [2][3]. - Rutledge aims to enhance client and business growth by combining local relationships with technology and specialist expertise [3].

Core Points - First Horizon Corporation plans to announce its fourth quarter and full year financial results on January 15, 2026 [1] - The company will host a live conference call and webcast presentation on the same day at 9:30 am ET [1] - First Horizon Corporation has $83.2 billion in assets as of September 30, 2025, and operates in 12 states in the southern U.S. [2] Financial Results Announcement - The financial results will be available at ir.firsthorizon.com at approximately 6:30 am ET [1] - A replay of the conference call will be available until midnight CT on January 29, 2026 [1] - The company will provide a live webcast of the presentation, which will be archived on its website for one year [1] Company Overview - First Horizon Corporation is recognized as one of the nation's best employers by Fortune and Forbes magazines [2] - The company offers a wide range of financial services, including commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services [2] - The banking subsidiary, First Horizon Bank, is headquartered in Memphis, TN [2]

Core Viewpoint - First Horizon Corporation has been recognized by Forbes as a 2025 Best-in-State Employer for Tennessee, highlighting its commitment to employee satisfaction and organizational culture [1][2]. Company Overview - First Horizon Corporation, with $83.2 billion in assets as of September 30, 2025, is a leading regional financial services company based in Memphis, TN [3]. - The company operates in 12 states primarily in the southern U.S. and offers a wide range of financial services including commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking [3]. Employee Recognition - The recognition as a Best-in-State Employer is based on an independent survey of over 160,000 employees from companies with a minimum of 500 employees in the U.S., ensuring a representative sample of the workforce [2]. - Tanya Hart, Senior Executive Vice President and Chief Human Resources Officer, emphasized that the success of First Horizon is driven by associates who are committed to excellence for clients and communities, reflecting a culture that listens, invests, and empowers employees [3]. Industry Recognition - First Horizon has also been acknowledged as one of the nation's best employers by Fortune and Forbes magazines and is listed as a Top 10 Most Reputable U.S. Bank [3].

Core Insights - First Horizon Corporation has been recognized in Forbes America's Best Employers for Women 2025 list, highlighting its commitment to gender equality in the workplace [1][2] Company Overview - First Horizon Corporation, with assets totaling $83.2 billion as of September 30, 2025, is a prominent regional financial services company based in Memphis, TN [4] - The company operates in 12 states primarily in the southern U.S. and offers a wide range of financial services including commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking [4] Employee Focus - The recognition from Forbes is attributed to the company's focus on listening to associates, investing in their growth, and fostering a positive work environment [3] - The survey evaluated employers based on factors such as pay equity, advancement opportunities, parental leave, work-life balance, and benefits for childcare or eldercare, along with the representation of women in executive and board positions [2]

Core Insights - First Horizon has successfully executed its strategy to improve returns through tight cost discipline and returning additional capital [1] - The company maintains one of the most attractive footprints in the banking sector and is focused on improving overall returns on a sustainable basis [1] Company Leadership - The discussion features Chairman and CEO Bryan Jordan and CFO Hope Dmuchowski, indicating a strong leadership presence [2]

Summary of First Horizon Conference Call Company Overview - **Company**: First Horizon (FHN) - **Industry**: Banking Key Points and Arguments Financial Performance - First Horizon had a solid year in 2025, making progress on return targets and returning significant capital while maintaining tight cost discipline [2][5] - The company aims for a return on tangible common equity (ROTCE) of over 15% [5][31] Strategic Focus - The company has streamlined its strategy document from a lengthy format to a concise five to six-page version, enhancing clarity and focus across the organization [3][4] - Emphasis on improving profitability by rotating out less profitable relationships and focusing on core customer bases [2][4] Technology and Efficiency - Significant investments in technology have been made, improving efficiency and effectiveness in operations [2][4][27] - The transition to cloud-based data centers is expected to yield cost savings and operational efficiencies [27] Market Sentiment and Loan Activity - Customer confidence has been increasing, attributed to macroeconomic factors such as tariff adjustments and lower interest rates [6][7] - The bank anticipates originating approximately 60% more loans in 2025 compared to the previous year, indicating strong client sentiment [7] Loan Growth Expectations - Loan growth is expected to normalize to mid-single-digit percentages in 2026, with confidence in commercial and industrial (C&I) lending and mortgage warehouse businesses [8][10] - Commercial real estate (CRE) activity is starting to stabilize after previous declines [9][10] Competitive Landscape - Increased merger activity in the banking sector is seen as an opportunity for First Horizon to attract clients during integration phases of competitors [11][12] - The bank positions itself as a strong commercial middle-market lender, focusing on private client and wealth management to differentiate from competitors [12] Deposit Growth and Management - Deposit balances have remained stable, with good customer activity noted in commercial deposits [13][16] - The bank is managing deposit costs effectively, with expectations for continued growth in deposits to fund loan growth [13][16] Specialty Lending and Countercyclical Businesses - The bank is seeing positive trends in its countercyclical businesses, particularly in mortgage warehouse lending, which has remained steady [18][19] - Equipment leasing and commercial real estate are also highlighted as areas of growth [19][20] Cost Management - The bank aims to maintain flat expenses while investing in technology and talent, with a focus on efficiency [25][27] - A disciplined approach to spending is emphasized to ensure top-quartile returns [27] Capital Allocation and Share Buybacks - First Horizon has repurchased approximately $300 million in shares and plans to continue managing its capital effectively [33][40] - The bank aims to balance capital allocation between supporting loan growth and returning capital to shareholders [40][44] Credit Quality - The bank reports strong credit quality across various lending segments, with optimism for continued positive trends into 2026 [51][53] Future Outlook - The company is focused on driving incremental profitability and enhancing shareholder value through strategic initiatives and operational efficiencies [46][56] - The management remains open to M&A opportunities but prioritizes organic growth and profitability improvements [46][49] Misunderstandings and Opportunities - First Horizon is viewed as a transition story, with significant potential for growth and value creation in the coming years [56] Additional Important Points - The bank's approach to mortgage warehouse lending includes retaining loan documents to mitigate risks, differentiating it from competitors [53] - The management is cautious about the economic outlook, acknowledging potential downside risks while remaining optimistic about credit quality [45][51]

Core Insights - First Horizon Bank has promoted Todd Warrick to Triangle Market President for the Mid-Atlantic region, where he will continue to lead corporate and commercial banking efforts [1][2] - Warrick's focus will be on enhancing market share in Central North Carolina while maintaining strong community and associate engagement [1][2] - First Horizon Corporation has $83.2 billion in assets as of September 30, 2025, and operates in 12 states, primarily in the southern U.S. [3] Company Overview - First Horizon Corporation is recognized as a leading regional financial services company, offering a wide range of services including commercial, private banking, consumer, and wealth management [3] - The company has received accolades as one of the nation's best employers and is ranked among the Top 10 Most Reputable U.S. Banks [3] - The headquarters is located in Memphis, TN, and the bank is dedicated to helping clients and communities unlock their full potential [3]