We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
First Horizon Shares Gain as Q4 Earnings Beat on Y/Y NII Growth
Read MoreHide Full Article
Key Takeaways
FHN posted Q4 adjusted EPS of 52 cents, topping estimates and lifting shares 1.6% after the report.
First Horizon's results were driven by 7% y/y NII growth and non-interest income more than doubling.
FHN recorded no Q4 provision for credit losses, though expenses rose and net charge-offs increased.
Shares of First Horizon Corporation (FHN - Free Report) rose 1.6% in yesterday’s trading session after reporting better-than-expected results. The company posted fourth-quarter 2025 adjusted earnings per share of 52 cents surpassed the Zacks Consensus Estimate of 47 cents. This compares favorably with 43 cents in the year-ago quarter.
Results benefited from higher net interest income (NII) and a significant rise in non-interest income, along with the absence of provision for credit losses. However, the rise in expenses remains a headwind.
Results exclude after-tax reduction of 2 cents per share of notable items. After considering this, net income available to its common shareholders (GAAP basis) was $257 million, surging 63% year over year.
For 2025, adjusted earnings per share of $1.89 surpasses the Zacks Consensus Estimate of $1.84 per share. The metric rose 22% from the year-ago period. Net income available to its common shareholders (GAAP basis) was $956 million, up 29% year over year.
FHN’s Revenues & Expenses Rise
Total quarterly revenues were $888 million, which rose 22% year over year. The metric topped the Zacks Consensus Estimate by 2.9%.
For 2025, total revenues were $3.42 billion, which grew 7% year over year. The metric topped the Zacks Consensus Estimate of $3.39 billion.
NII increased 7% year over year to $676 million. Additionally, the net interest margin increased 18 basis points from the prior-year quarter to 3.51%.
Non-interest income was $212 million, more than double from the year-ago level, primarily driven by the absence of securities portfolio restructuring losses recorded in the fourth quarter of 2024.
Non-interest expenses increased 7% year over year to $545 million. The increase was due to higher personnel expenses, occupancy and equipment costs, and outside services, partially offset by lower amortization of intangible assets and other non-interest expenses.
The efficiency ratio was 61.33%, down from 61.98% in the same quarter last year. A decline in the efficiency ratio indicates an improvement in profitability.
FHN’s Loans & Deposits Balances Increase
Total period-end loans and leases, net of unearned income, were $64.16 billion, increasing 3% from the year-ago quarter. Total period-end deposits of $67.47 billion rose 3% year over year.
FHN’s Credit Quality: Mixed Bag
Non-performing loans and leases totaled $604 million, up slightly from the year-ago period.
The ratio of allowance for credit losses to loans and leases was 1.31%, down from 1.43% in the prior-year quarter.
Net charge-offs were $30 million, up from $13 million in the year-ago quarter. Notably, FHN recorded no provision for credit losses in the fourth quarter against a provision of $10 million in the prior-year quarter.
FHN’s Capital Ratios Deteriorate
As of Dec. 31, 2025, the common equity tier 1 ratio was 10.6%, down from 11.2% reported at the end of the year-ago quarter.
The total capital ratio was 13.4%, down from 14.2% in the year-ago quarter. The tier 1 leverage ratio declined to 10.2% from 10.6% a year ago.
Our Viewpoint on FHN
First Horizon benefited from solid revenue growth, higher net interest income, strong year-over-year non-interest income growth and stable credit performance. However, lower capital ratios, rising expenses and net charge-offs remain areas to watch going forward.
First Horizon Corporation Price, Consensus and EPS Surprise
Fifth Third Bancorp (FITB - Free Report) is scheduled to release fourth-quarter 2025 earnings on Jan. 20. The consensus estimate for FITB’s quarterly earnings has been unchanged at $1.01 per share over the past seven days.
Huntington Bancshares Inc. (HBAN - Free Report) is also slated to report fourth-quarter 2025 results on Jan. 22. Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has been unchanged at 39 cents per share.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
First Horizon Shares Gain as Q4 Earnings Beat on Y/Y NII Growth
Key Takeaways
Shares of First Horizon Corporation (FHN - Free Report) rose 1.6% in yesterday’s trading session after reporting better-than-expected results. The company posted fourth-quarter 2025 adjusted earnings per share of 52 cents surpassed the Zacks Consensus Estimate of 47 cents. This compares favorably with 43 cents in the year-ago quarter.
Results benefited from higher net interest income (NII) and a significant rise in non-interest income, along with the absence of provision for credit losses. However, the rise in expenses remains a headwind.
Results exclude after-tax reduction of 2 cents per share of notable items. After considering this, net income available to its common shareholders (GAAP basis) was $257 million, surging 63% year over year.
For 2025, adjusted earnings per share of $1.89 surpasses the Zacks Consensus Estimate of $1.84 per share. The metric rose 22% from the year-ago period. Net income available to its common shareholders (GAAP basis) was $956 million, up 29% year over year.
FHN’s Revenues & Expenses Rise
Total quarterly revenues were $888 million, which rose 22% year over year. The metric topped the Zacks Consensus Estimate by 2.9%.
For 2025, total revenues were $3.42 billion, which grew 7% year over year. The metric topped the Zacks Consensus Estimate of $3.39 billion.
NII increased 7% year over year to $676 million. Additionally, the net interest margin increased 18 basis points from the prior-year quarter to 3.51%.
Non-interest income was $212 million, more than double from the year-ago level, primarily driven by the absence of securities portfolio restructuring losses recorded in the fourth quarter of 2024.
Non-interest expenses increased 7% year over year to $545 million. The increase was due to higher personnel expenses, occupancy and equipment costs, and outside services, partially offset by lower amortization of intangible assets and other non-interest expenses.
The efficiency ratio was 61.33%, down from 61.98% in the same quarter last year. A decline in the efficiency ratio indicates an improvement in profitability.
FHN’s Loans & Deposits Balances Increase
Total period-end loans and leases, net of unearned income, were $64.16 billion, increasing 3% from the year-ago quarter. Total period-end deposits of $67.47 billion rose 3% year over year.
FHN’s Credit Quality: Mixed Bag
Non-performing loans and leases totaled $604 million, up slightly from the year-ago period.
The ratio of allowance for credit losses to loans and leases was 1.31%, down from 1.43% in the prior-year quarter.
Net charge-offs were $30 million, up from $13 million in the year-ago quarter. Notably, FHN recorded no provision for credit losses in the fourth quarter against a provision of $10 million in the prior-year quarter.
FHN’s Capital Ratios Deteriorate
As of Dec. 31, 2025, the common equity tier 1 ratio was 10.6%, down from 11.2% reported at the end of the year-ago quarter.
The total capital ratio was 13.4%, down from 14.2% in the year-ago quarter. The tier 1 leverage ratio declined to 10.2% from 10.6% a year ago.
Our Viewpoint on FHN
First Horizon benefited from solid revenue growth, higher net interest income, strong year-over-year non-interest income growth and stable credit performance. However, lower capital ratios, rising expenses and net charge-offs remain areas to watch going forward.
First Horizon Corporation Price, Consensus and EPS Surprise
First Horizon Corporation price-consensus-eps-surprise-chart | First Horizon Corporation Quote
FHN currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations of Bank Stocks
Fifth Third Bancorp (FITB - Free Report) is scheduled to release fourth-quarter 2025 earnings on Jan. 20. The consensus estimate for FITB’s quarterly earnings has been unchanged at $1.01 per share over the past seven days.
Huntington Bancshares Inc. (HBAN - Free Report) is also slated to report fourth-quarter 2025 results on Jan. 22. Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has been unchanged at 39 cents per share.