Download PDF

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.

Show Full description

1.b. Last Insights on FHN

First Horizon's recent momentum is driven by steady loan growth, firmer deposits, and net interest income (NII) gains. The company's strong third-quarter results, with earnings per share of $0.51, surpassing estimates, demonstrate its operational resilience. According to MarketBeat Ratings, nineteen analysts covering the company have given it an average "Hold" rating, with nine assigning a buy rating. First Horizon's participation in the Goldman Sachs 2025 U.S. Financial Services Conference and its recognition as one of Forbes America's Best Employers for Women 2025 underscore its commitment to growth and excellence.

1.c. Company Highlights

2. First Horizon's 2025 Earnings: A Strong Foundation for Future Growth

First Horizon delivered a robust financial performance in 2025, with earnings per share (EPS) of $0.528, beating estimates of $0.46. The company's pre-provision net revenue (PPNR) and return on tangible common equity (ROTCE) stood at 15%, indicating a strong profitability. The net interest margin (NIM) was 3.512%, and loan growth was significant, with period-end loans increasing by $1.1 billion or 2% from the prior quarter. The net charge-off ratio was 19 basis points, in line with expectations.

Publication Date: Jan -16

📋 Highlights
  • Increased Shareholder Returns: $900M in stock repurchases and $300M in dividends returned in 2025, with a $1B buyback program remaining.
  • Strong Loan Growth: $1.1 billion (2% QoQ) period-end loan growth in Q4 2025, driven by mortgage warehouse, C&I, and CRE sectors.
  • Profitability Targets: Achieved 15% return on tangible common equity (ROTCE) in 2025, with guidance for sustained 15%+ ROTCE and mid-single-digit PPNR growth in 2026.
  • Net Interest Margin Expansion: Q4 NIM of 3.512% with an outlook of mid-340s in 2026, supported by pricing trends and balance sheet growth.
  • Capital Management: Maintains CET1 ratio target of 10.75%–10.5%, with $30M reserve release despite 11% sequential increase in criticized assets.

Revenue Growth and Expense Management

The company expects 2026 to bring year-over-year PPNR growth, with mid-single-digit balance sheet growth and positive operating leverage. Total revenue expectations range from 3% to 7% growth year over year. Expenses are expected to remain flat, with a focus on investments in technology, personnel additions, and new branches. The company's revenue guidance includes a growth trajectory for net interest income (NII) and fee income, driven by initiatives such as treasury management and consumer franchise growth.

Loan Growth and Credit Quality

Loan growth is expected to be driven by mortgage warehouse, commercial and industrial (C&I), and commercial real estate (CRE) segments. The company has a robust risk management framework in place for its non-mortgage warehouse non-bank financial institution (NBFI) book. The net charge-off expectation is 15 to 25 basis points, and the company believes it has done the "building phase" and is now at the right reserve level. The CRE business is expected to inflect this year, driven by a pick-up in construction starts and rate cuts.

Capital Management and Valuation

The company's near-term CET1 target remains at 10.75%, and it has a $1 billion buyback authorization. The current P/TBV ratio is 1.36, and the dividend yield is 2.45%. With a ROTCE of 15%, the company is well-positioned to deliver sustainable returns. The current valuation multiples imply that the market has priced in a certain level of growth and profitability. With a P/E ratio of 12.22 and an EV/EBITDA of 11.7, the company's valuation is reasonable compared to its peers.

Outlook and Expectations

The company expects continued momentum in mortgage warehouse, with a possible upside. Fee income and refinance activity may also pick up. Expenses are expected to follow normal seasonality. Analysts estimate next year's revenue growth at 4.1%, which is within the company's guidance range. Overall, First Horizon's strong financial performance and growth prospects make it an attractive investment opportunity in the banking sector.

3. NewsRoom

Card image cap

First Horizon Corporation to Participate in the Raymond James 47th Annual Institutional Investors Conference

Feb -20

Source: prnewswire.com

Card image cap

First Horizon Corporation (FHN) Presents at Bank of America Financial Services Conference 2026 Transcript

Feb -11

Source: seekingalpha.com

Card image cap

First Horizon Appoints Leilani Farol as Chief Information Security Officer

Feb -11

Source: prnewswire.com

Card image cap

Johnson Investment Counsel Inc. Has $70.53 Million Stake in First Horizon Corporation $FHN

Feb -10

Source: defenseworld.net

Card image cap

Best Income Stocks to Buy for February 9th

Feb -09

Source: zacks.com

Card image cap

Thrivent Financial for Lutherans Sells 55,963 Shares of First Horizon Corporation $FHN

Feb -08

Source: defenseworld.net

Card image cap

First Horizon Target of Unusually High Options Trading (NYSE:FHN)

Feb -05

Source: defenseworld.net

Card image cap

First Horizon Corporation $FHN Position Trimmed by Principal Financial Group Inc.

Feb -04

Source: defenseworld.net

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 ->

View Full Report
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 ->

View Full Report
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 ->

View Full Report
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 ->

View Full Report
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 ->

View Full Report
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 ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

25.25$

Current Price

25.25$

Potential

-0.00%

Expected Cash-Flows