Symbols

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

Tuesday, Mar 24, 2026 1:04 pm ET4min read

Aime Summary

- BOK FinancialBOKF-- (BOKF) and First HorizonFHN-- (FHN) show strong net interest income growth amid Fed rate cuts, driven by margin expansion and loan diversification.

- BOKFBOKF-- expands through regional markets and mortgage finance, while FHNFHN-- leverages 2020 merger to strengthen Southern U.S. presence and business diversification.

- Both face rising expenses from tech investments and labor costs, but BOKF’s premium valuation (12.67x P/E) vs. FHN’s 10.29x highlights divergent investor sentiment.

- Analysts favor BOKF for consistent earnings upgrades and strategic growth, though FHN offers higher dividend yield (3.03%) and lower valuation risks.

In a banking landscape shaped by interest-rate movements and evolving lending dynamics, investors are increasingly focusing on the resilience and growth prospects of regional lenders. Two such banks, BOK Financial Corporation BOKF and First Horizon Corporation FHN, stand out for their diversified business models, steady balance sheet growth and distinct strategic priorities.

Let us take a closer look at these banks to uncover key differences in margin trends, expansion strategies and organic growth drivers, and analyze which stock offers better upside potential.

The Case for BOKF

The evolving rate environment is turning supportive for banks like BOK FinancialBOKF--, as easing monetary policy is likely to aid margin expansion. At its March 2026 FOMC meeting, the Fed kept rates unchanged at 3.50%-3.75% but signaled a potential cut in 2026, which could lower funding costs and support earnings.

Against this backdrop, BOKF’s net interest income (NII) growth prospects remain solid. With funding costs easing and asset yields stabilizing, margins are expected to improve further. The Fed’s prior rate cuts and expectations of additional easing will likely support continued expansion in NII. Management expects NII to be in the range of $1.44-$1.48 billion for 2026, up from $1.3 billion in 2025, reflecting continued growth momentum.

The company also represents a fundamentally balanced outlook supported by a diversified operating model, steady loan and deposit growth and improving margin trends. It has been focused on diversifying its loan portfolio across energy, healthcare and service lending while continuing to expand lending to individuals. Deposits have also witnessed a rising trend, reflecting a stable funding base. The company is also expanding its mortgage finance business, targeting $1 billion in commitments by 2026, which is expected to contribute meaningfully to loan growth going forward. Management expects loan growth in the upper single digits in 2026 compared with 2025, supported by a strong loan pipeline and improving deposit balances.

Strategic expansion efforts have also strengthened BOK Financial’s growth profile. The company has steadily expanded beyond its core Oklahoma market into select neighboring regions. In 2023, it entered the southeastern United States through a Memphis office, while in 2024, Bank of Texas expanded into the San Antonio market. Additionally, acquisitions over the years, including CoBiz Financial, have enhanced its geographic footprint and asset management capabilities, positioning the company well for long-term growth.

However, rising expenses remain a concern for BOKFBOKF--. It has been witnessing an increase in operating expenses, caused by continued investments in technology and higher employee-related costs. Going forward, non-interest expenses (excluding FDIC special assessment) are expected to rise at a low single-digit rate in 2026 from the $1.43 billion reported in 2025, keeping the expense base elevated in the near term.

The Case for FHN

First Horizon’s NII outlook also remains favorable, supported by a combination of rate tailwinds and balance sheet positioning. With the Federal Reserve reducing rates by 75 basis points in 2025 and signaling the possibility of another cut in 2026, funding costs are expected to stabilize while loan demand improves. Additionally, its asset-sensitive balance sheet, characterized by a meaningful exposure to floating-rate loans, along with its presence in higher-growth markets, is likely to support margin expansion and drive further NII growth in the upcoming period.

The company has also demonstrated robust organic growth, supported by consistent expansion in loans and deposits. This growth has been driven by prior acquisitions as well as the strength of a well-diversified loan portfolio. Management expects this momentum to continue, supported by solid performance in the commercial and industrial portfolio and steady mortgage lending activity. Meanwhile, deposit growth is likely to remain strong, aided by promotional offerings, an increase in non-interest-bearing deposits and strong customer retention. With a balanced mix of regional and specialty banking operations in high-growth markets, FHNFHN-- remains well-positioned to sustain organic growth.

Expansion efforts have played a crucial role in shaping FHN’s current franchise and growth trajectory. The company’s merger with IBERIABANK Corporation in 2020 marked a transformational step, significantly enhancing its scale, geographic reach and business diversification. The combined entity brought together complementary strengths across the Southeast, creating a stronger regional banking platform with expanded capabilities across commercial, consumer and specialty banking businesses.

As highlighted at the RBC Capital Markets conference of 2026, First HorizonFHN-- now operates across 12 high-growth Southern states, offering significant expansion opportunities. With a balanced mix of commercial, consumer and specialty banking businesses, the company is well-positioned to drive long-term growth.

However, rising expenses remain a concern for FHN due to higher personnel and occupancy costs, along with continued investments in technology. While the expense base is expected to stay elevated in the near term, management aims to keep adjusted non-interest expenses relatively stable in 2026 compared with the $2.05 billion reported in 2024.

BOKF & FHN: Price Performance, Valuation & Other Comparisons

Over the past year, shares of BOK Financial and First Horizon have rallied 20.7% and 13.4%, respectively, outperforming the industry’s growth of 6.2%.