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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 performance was negatively impacted by a 14.2% plunge in four weeks, indicating heavy selling pressure. Despite beating Q3 earnings and revenue estimates with $0.51 per share, exceeding the Zacks Consensus Estimate of $0.45, some analysts revised their forecasts downward. The company's strong net interest and fee income growth drove earnings above estimates. However, the stock has become technically oversold, which may lead to a potential trend reversal. Additionally, the options market is predicting a possible spike in the stock.

1.c. Company Highlights

2. First Horizon's Q3 2025 Earnings: A Strong Beat

First Horizon's Chairman, President, and CEO, D. Bryan Jordan, and Chief Financial Officer, Hope Dmuchowski, reported strong adjusted EPS of $0.51 per share for Q3 2025, beating estimates of $0.45. The earnings growth increased the adjusted return on tangible common equity by 135 basis points to 15%. Net interest income grew by $33 million, with a 15-basis-point expansion of the net interest margin to 3.55%, driven by average loan balance growth and a 14-basis-point expansion of the total loan yield.

Publication Date: Oct -16

📋 Highlights

Deposit and Loan Portfolio Performance

The company's deposit performance saw period-end balances decrease by $52 million compared to the prior quarter, driven by a $652 million decrease in brokered CDs, offset by growth in index and promotional deposits. The loan portfolio performance saw period-end loans decrease slightly from the prior quarter, with loans to mortgage companies decreasing $132 million during Q3, in line with normal seasonality. The company saw growth in its C&I portfolio, with period-end balances up $174 million quarter over quarter.

Fee Income and Expense Performance

Fee income performance increased by $26 million from the prior quarter, excluding deferred compensation, driven by improved business conditions and increased customer activity for FHN Financial. Adjusted expenses increased $45 million from the prior quarter, driven by personnel expenses, outside services, and a $20 million contribution to the First Horizon Foundation.

Asset Quality and Capital Management

The company reported net charge-offs of $26 million, with a net charge-off ratio of 17 basis points, in line with expectations. The CET1 ratio remained flat at 11%, with a near-term target of 10.75%. The company accelerated share buybacks, repurchasing approximately 8.6 million shares for $190 million, with over $300 million in remaining buyback authorization.

Outlook and Valuation

First Horizon maintained its full-year 2025 guidance, with confidence in achieving year-over-year PPNR growth, and targeting a sustainable 15% plus adjusted ROTCE. Analysts estimate next year's revenue growth at 2.8%. With a P/TBV ratio of 1.18 and a dividend yield of 2.88%, the stock appears reasonably valued. The company's focus on driving $100 million of incremental pre-tax pre-provision earnings and executing its business model in the near term is expected to drive growth.

Growth Opportunities

The company is optimistic about growth, with increased confidence and pipeline momentum, and sees opportunities for profitable loan growth in a declining rate environment. First Horizon is focused on driving value by delivering higher returns, improving profitability, and growing its franchise, which keeps its optionality open.

3. NewsRoom

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FHN vs. BOKF: Which Bank Stock Has Better Upside Potential?

Dec -04

Source: zacks.com

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Fisher Asset Management LLC Sells 40,250 Shares of First Horizon Corporation $FHN

Dec -04

Source: defenseworld.net

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First Horizon Corporation to Participate in the Goldman Sachs 2025 Financial Services Conference

Nov -24

Source: prnewswire.com

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FHN or CFR: Which Is the Better Value Stock Right Now?

Nov -24

Source: zacks.com

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First Horizon Named to Forbes America's Best Companies 2026 List

Nov -20

Source: prnewswire.com

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First Horizon Undervalued, But Operational Positives Clouded By M&A And Macro Concerns

Nov -13

Source: seekingalpha.com

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First Horizon Stock Rises Nearly 9% in 6 Months: Is It Worth Buying Now?

Nov -11

Source:

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First Horizon Corporation (FHN) Presents at The BancAnalysts Association of Boston Conference Transcript

Nov -07

Source: seekingalpha.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
First Hawaiian

A-Score: 6.6/10

Value: 6.1

Growth: 4.4

Quality: 6.8

Yield: 8.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Regions Financial

A-Score: 6.6/10

Value: 5.1

Growth: 4.8

Quality: 7.8

Yield: 8.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
First Horizon

A-Score: 6.4/10

Value: 5.8

Growth: 4.7

Quality: 5.8

Yield: 7.0

Momentum: 9.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
FNB

A-Score: 6.4/10

Value: 5.9

Growth: 5.3

Quality: 5.4

Yield: 7.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Comerica

A-Score: 6.1/10

Value: 5.8

Growth: 4.6

Quality: 5.6

Yield: 8.0

Momentum: 7.0

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Key

A-Score: 5.6/10

Value: 5.2

Growth: 2.7

Quality: 5.2

Yield: 8.0

Momentum: 6.0

Volatility: 6.7

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

22.76$

Current Price

22.76$

Potential

-0.00%

Expected Cash-Flows