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1. Company Snapshot

1.a. 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 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.

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1.b. Last Insights on FHN

First Horizon's recent momentum is driven by its solid Q4 earnings, which exceeded estimates due to year-over-year net interest income growth and a surge in non-interest income. The company's strong finish to 2025 was characterized by improved profitability metrics and solid loan and deposit trends. According to Marketbeat, twenty analysts have assigned an average recommendation of "Moderate Buy" to the company, with nine issuing a buy rating and one assigning a strong buy rating. First Horizon's capital position supports ongoing share buybacks, which reduces the number of outstanding shares and benefits shareholders. The company's guidance calls for 3%-7% revenue growth and accelerating loan growth in 2026.

1.c. Company Highlights

2. First Horizon Drives 15%+ ROTCE Amid C&I Momentum

First Horizon Corporation delivered a robust first‑quarter 2026 performance, with net interest income rising 6% YoY while loan growth lagged at 3%, underscoring disciplined cost management. Earnings per share topped expectations at $0.53 versus analysts’ $0.49, supported by a 15.1% adjusted ROTCE—an improvement of over 200 basis points from the prior year. The bank’s revenue guidance of 3‑7% reflects a balanced mix of NII and fee income, while the net charge‑off ratio held steady at 18 basis points, reinforcing credit quality. Hope Dmuchowski noted that the NIM is expected to sit in the high 3.40s, a slight uptick from the current level, as deposit costs and loan yields stabilize. The cumulative deposit beta of 69% since rates fell in September 2024 further illustrates the bank’s effective cost control.

Publication Date: Apr -16

📋 Highlights
  • Adjusted ROTCE Growth:: Adjusted ROTCE reached 15.1%, a 200-basis-point increase year over year.
  • Net Interest Income Expansion:: Net interest income grew 6% YoY, surpassing 3% loan portfolio growth.
  • CET1 Ratio Maintenance:: CET1 ratio held at 10.53% via $230M share buybacks and $400M preferred stock issuance.
  • PPNR Opportunity:: $100M+ incremental pre-provision net revenue target from relationship deepening and revenue diversification.
  • Strong Credit Performance:: Net charge-offs at 18 bps, with a 1.28% ACL-to-loans ratio and $15M provision for credit losses.

Credit and Capital Outlook

First Horizon’s CET1 ratio remains solid at 10.53%, bolstered by a $230 million share buyback and $400 million Series H preferred issuance. The bank projects a full‑year outlook of maintaining its CET1 target at 10.5% while remaining open to a modest reduction if capital needs dictate. The ACL‑to‑loans ratio has eased to 1.28%, providing a comfortable cushion above the 7‑fold average charge‑off over two years. The tangible book value per share climbed 9% YoY to $14.34, and the company’s net debt/EBITDA sits at 8.08, indicating a balanced capital structure that supports future growth.

Growth Drivers and Strategy

Relationship banking fuels growth, with C&I activity up $624 million excluding mortgage loans and CRE pipelines poised to contribute later this year. The bank targets an incremental $100 million PPNR from deepening client ties, treasury management, and wealth initiatives, with expenses expected to remain flat YoY. First Horizon’s minimal private‑credit exposure—under 1%—and low mortgage warehouse charge‑offs (1 bp) underscore a conservative risk profile. The firm plans opportunistic buybacks as excess capital is generated, aligning shareholder returns with core franchise profitability. The 3‑7% revenue guide is underpinned by a balanced mix of NII and fee income, with loan growth projected in the mid‑single digits.

Valuation Snapshot

At a P/E of 11.3 and a P/B of 1.27, First Horizon trades at a modest premium to the broader banking sector, while its dividend yield of 2.57% offers a steady income stream. The EV/EBITDA of 16.36 reflects healthy earnings power, and the free cash flow yield of 8.34% signals ample liquidity for future capital deployments. With a ROIC of 4.25% and a ROE of 11.43%, the bank’s valuation metrics suggest a reasonable upside potential as it continues to deliver above‑average ROTCE and solid credit quality.

3. NewsRoom

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First Horizon Bank Announces New Hires and Promotion in Acadiana

Apr -16

Source: prnewswire.com

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First Horizon Q1 Earnings Beat Estimates on Higher NII & Fee Income

Apr -16

Source: zacks.com

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First Horizon Q1 Review: Credit Quality Remains Resilient

Apr -16

Source: seekingalpha.com

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First Horizon Corporation (FHN) Q1 2026 Earnings Call Transcript

Apr -15

Source: seekingalpha.com

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First Horizon (FHN) Reports Q1 Earnings: What Key Metrics Have to Say

Apr -15

Source: zacks.com

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First Horizon National (FHN) Tops Q1 Earnings Estimates

Apr -15

Source: zacks.com

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First Horizon Corporation Delivers Strong First Quarter 2026 Results with Net Income Available to Common Shareholders of $257 Million, up 21% year-over-year and EPS of $0.53, up $0.12 from First Quarter 2025

Apr -15

Source: prnewswire.com

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First Horizon Bank Welcomes Benjamin Hymel as Business Banking Group Manager in Houma

Apr -14

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.42%)

6. Segments

Regional Banking

Expected Growth: 7%

First Horizon Corporation's 7% growth in Regional Banking is driven by strategic acquisitions, expanding commercial lending, and a strong presence in the Southeastern US. Additionally, investments in digital transformation, cost savings initiatives, and a favorable interest rate environment contribute to the segment's growth.

Specialty Banking

Expected Growth: 9%

First Horizon Corporation's Specialty Banking segment growth is driven by increasing demand for mortgage banking services, expansion of its correspondent lending business, and strategic acquisitions. Additionally, the segment benefits from a strong brand presence, diversified revenue streams, and a focus on digital transformation, resulting in a 9% growth rate.

Corporate Segment

Expected Growth: 8%

First Horizon Corporation's Corporate Segment growth of 8% is driven by strategic acquisitions, expansion of commercial banking services, and increased treasury management fees. Additionally, the segment benefits from a strong capital position, disciplined expense management, and a favorable interest rate environment, enabling the company to invest in digital transformation and talent acquisition, further fueling growth.

7. Detailed Products

Checking and Savings Accounts

First Horizon offers a range of checking and savings accounts for individuals and businesses, providing easy access to funds and financial management tools.

Credit Cards

First Horizon offers a variety of credit cards with rewards, cashback, and low interest rates, suitable for different lifestyles and spending habits.

Mortgage Loans

First Horizon provides mortgage loans for purchasing or refinancing homes, with competitive rates and flexible repayment terms.

Personal Loans

First Horizon offers personal loans for various purposes, such as debt consolidation, weddings, or unexpected expenses.

Investment and Wealth Management

First Horizon provides investment and wealth management services, including brokerage, retirement, and trust services.

Business Banking

First Horizon offers business banking services, including checking and savings accounts, loans, and cash management solutions.

Commercial Loans

First Horizon provides commercial loans for businesses, including lines of credit, term loans, and construction loans.

Treasury Management

First Horizon offers treasury management services, including cash management, fraud prevention, and account services.

8. First Horizon Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

First Horizon Corporation operates in the banking industry, where substitutes are limited. However, fintech companies and digital payment platforms pose a moderate threat as substitutes.

Bargaining Power Of Customers

First Horizon Corporation's customers have limited bargaining power due to the company's strong brand presence and diversified product offerings.

Bargaining Power Of Suppliers

First Horizon Corporation has a diversified supplier base, reducing the bargaining power of individual suppliers.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and capital requirements, making it difficult for new entrants to compete with First Horizon Corporation.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. First Horizon Corporation faces intense rivalry from other banks and financial institutions.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.14%
Debt Cost 6.46%
Equity Weight 70.86%
Equity Cost 8.70%
WACC 8.05%
Leverage 41.12%

11. Quality Control: First Horizon Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Regions Financial

A-Score: 6.5/10

Value: 6.2

Growth: 4.8

Quality: 7.6

Yield: 8.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
First Hawaiian

A-Score: 6.3/10

Value: 6.3

Growth: 4.3

Quality: 6.8

Yield: 8.0

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
First Horizon

A-Score: 6.0/10

Value: 4.3

Growth: 4.7

Quality: 6.4

Yield: 7.0

Momentum: 7.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
FNB

A-Score: 6.0/10

Value: 5.4

Growth: 5.3

Quality: 5.4

Yield: 7.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Comerica

A-Score: 5.8/10

Value: 4.3

Growth: 4.6

Quality: 6.2

Yield: 7.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Key

A-Score: 5.5/10

Value: 5.4

Growth: 2.7

Quality: 5.2

Yield: 8.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

23.98$

Current Price

23.98$

Potential

-0.00%

Expected Cash-Flows