What were the key takeaways from First Horizon’s earnings call?

What is the revenue and EPS growth rate for First Horizon year over year?

What is First Horizon's latest dividend and current dividend yield?

What does First Horizon do and what are its main business segments?

What factors drove the changes in First Horizon's revenue and profit?

What were the key takeaways from First Horizon's earnings call?

What guidance did First Horizon's management provide for the next earnings period?

What is First Horizon's gross profit margin?

- **Revenue Beat**: Adjusted EPS of $0.51, driven by NII and fee income growth.
- **Margin Expansion**: NIM 3.55% with accretion from Main Street Program.
- **M&A Flexibility**: Open to tuck-in deals in existing footprint, capital prioritized for organic growth.
- **Expense Control**: Flattish 2026 expenses with strategic tech investments.
- **Credit Resilience**: Stable charge-offs, strong credit metrics.
- **Capital Efficiency**: CET1 target 10.75%, buybacks as residual capital use.

**【CEO Summary Section】**
- **Revenue Growth**: Adjusted EPS of $0.51 per share, driven by net interest income (NII) growth and fee income expansion.
- **Margin Expansion**: Net interest margin (NIM) expanded to 3.55% due to Main Street Lending Program accretion and loan growth.
- **Strategic Focus**: Emphasis on organic growth in C&I and CRE, with pipeline momentum in lower-rate environment.
- **M&A Readiness**: Open to tuck-in acquisitions in existing footprint, with capital deployment prioritized for organic growth.

**【CFO Financial Commentary】**
- **GAAP Net Income**: $420 million, with non-GAAP EPS of $1.08 (excluding one-time items).
- **Expense Management**: Adjusted expenses up $45 million Q/Q, driven by incentives and technology investments.
- **Credit Quality**: Charge-offs stable at 17 bps, with ACL at 1.38% of loans.
- **Capital Target**: CET1 at 11.0%, aiming for 10.75% post-stress testing.
- **2026 Outlook**: $100+ million pretax PPNR from existing book, flattish expenses with strategic investments.

**【Q&A Highlights】**
- **Deposit Franchise**: Core deposits resilient despite seasonal CD runoff, retention rate 91% post-repricing.
- **M&A Environment**: Regulatory ease may enable smaller deals, but focus on organic deployment.
- **CRE Growth**: CRE paydowns expected to stabilize, with focus on higher-yielding loans.
- **Rate Impact**: Deposit repricing lagging loan repricing, but NIM expected to hold with rate cuts.
- **Share Buybacks**: Capital deployment prioritized for loan growth, buybacks as residual capital use.

First Horizon Corporation (FHN) Q3 2025 Earnings Call Transcript

- **EPS Beat**: $0.45 adjusted EPS (+$0.03 QoQ) driven by $10M NII growth and 2% loan/deposit expansion.
- **Credit Strength**: 22 bps charge-off ratio, 3 bps ACL coverage improvement, $34M net charge-offs.
- **Deposit Management**: 95% repricing retention, 72% rate beta, $1.4B period-end growth.
- **Growth Drivers**: Mortgage warehouse (+$689M), C&I (+$316M), 2% loan growth.
- **Strategic Focus**: $100M+ PPNR target via client deepening, 15%+ ROTCE by 2026, disciplined capital deployment.

**【CEO Summary Section】**
- Reported adjusted EPS of $0.45, up $0.03 from the prior quarter, driven by $4 million PPNR growth and $10 million net interest income (NII) expansion from loan portfolio growth.
- Credit metrics remained strong with a 22 basis point charge-off ratio, 3 basis point improvement in ACL coverage, and $34 million net charge-offs.
- Balance sheet growth: loans and deposits each increased 2% QoQ, supported by $689 million in mortgage warehouse lending and $1.4 billion deposit growth.
- Optimistic on 2025-2026 momentum, citing stable economic fundamentals and improving customer confidence.

**【CFO Financial Commentary】**
- NII grew $10 million QoQ, with 3 basis point loan yield expansion, offset by 4 basis point deposit cost compression (2.76% avg rate).
- Deposit performance: $1.4 billion period-end growth (95% retention of repricing balances), $57 million noninterest-bearing deposit increase.
- Fee income decreased $3 million QoQ due to ADR decline, partially offset by $4 million seasonal service charge pickup.
- Expenses +$4 million QoQ, with $8 million incentive reduction offset by $5 million salary growth and $7 million marketing investment.
- 2025 guidance: PPNR growth target maintained, expense range adjusted to flat/+2% vs. prior +3%.

**【Q&A Key Highlights】**
- **Deposit Pricing**: 72% beta since 2024 Fed cuts; Q3 expects 'zigzag' repricing as competition guarantees 6-9 month rates.
- **Credit Health**: C&I resilience, multifamily CRE payoffs ($125M upgrades, $125M payoffs), no new stress verticals identified.
- **Mortgage Warehouse**: Q3 balances expected to remain flat or higher, driven by new client wins and share gains.
- **Capital Deployment**: Buybacks ($9M Q2) contingent on loan growth; CET1 target (10.5-11%) may adjust post-CCAR.
- **Fee Income Risk**: ADR at 6-year low; $100M+ PPNR opportunity tied to treasury management and client deepening.

First Horizon Corporation (FHN) Q2 2025 Earnings Call Transcript

- **Net Interest Margin Expansion**: 9 basis points to 3.42% driven by 38 basis point deposit rate decline, offsetting 20 basis point loan yield drop.
- **Share Repurchase Momentum**: $360 million Q1 buybacks highlight capital discipline, with CET1 ratio maintained at 10.9%.
- **Credit Resilience**: 19 basis point net charge-off ratio despite 2 basis point ACL increase, reflecting cautious but stable credit culture.
- **Countercyclical Growth**: Mortgage warehouse and fixed income businesses poised to benefit from rate cuts, with Q2/Q3 seasonal pickup in mortgage origination.


**【CEO Summary Section】**
- The company reported Q1 2025 adjusted EPS of $0.42, down $0.01 from the prior quarter, driven by $16 million growth in pre-provision net revenue (PPNR) and a 9 basis point expansion in net interest margin (NIM) to 3.42%. Deposit cost management reduced interest-bearing deposit rates by 38 basis points, offsetting lower loan yields.
- Capital deployment included $360 million in share repurchases, maintaining a CET1 ratio of 10.9%. Management emphasized a 15%+ return on tangible common equity (ROTE) target, achievable through disciplined capital management and countercyclical revenue streams like mortgage warehouse lending.

**【CFO Financial Commentary】**
- Net interest income (NII) increased $1 million, with $42 million of incremental NII from deposit rate reductions and $8 million from Q4 2024 portfolio restructuring. Fee income declined $5 million due to market volatility in fixed income trading, while expenses decreased $20 million (excluding deferred compensation) through cost control.
- Credit performance remained strong with a 19 basis point net charge-off ratio, though the ACL-to-loans ratio rose 2 basis points to 1.45% to reflect macroeconomic uncertainty. Period-end loans declined 1% due to commercial real estate paydowns, but C&I pipeline activity showed resilience.

**【Q&A Key Highlights】**
- **PPNR Growth Confidence**: Despite economic uncertainty, management expects to meet 2025 PPNR growth guidance through balance sheet management and countercyclical fee income. A three-rate-cut scenario is the base case, with FHN Financial and mortgage warehouse businesses offsetting NII headwinds.
- **Capital Deployment**: Share buybacks will continue at $360 million+ quarterly pace if conditions allow, targeting 11% CET1. Management sees no immediate need to lower the CET1 target below 10.5% despite economic risks.
- **Credit Outlook**: ACL adjustments reflect cautious positioning, but net charge-offs remain stable at 19 basis points. Mortgage warehouse growth (seasonally strong in Q2/Q3) and relationship banking strategies support deposit retention and margin stability.


First Horizon (FHN)-16 Apr 25-2025 Q1 Earnings call transcript

- **2024 Strong Finish**: EPS +8%, NIM 3.35%, $55M countercyclical revenue boost. Loan/deposit growth 3%/2%, NCO ratio 18bps.
- **Q4 Margin Resilience**: NIM +$2M QoQ via 34bps deposit cost reduction. $35M annual benefit from $1.2B securities restructure.
- **2025 Outlook**: Flat to +4% revenue, 2-4% expense growth. Mortgage warehouse lending +$1.4B new lines, targeting low-single-digit loan growth.
- **Capital Flexibility**: $163M Q4 buybacks, CET1 11.2%. 2.5-year earnback on securities portfolio restructuring.
- **Credit Strength**: NCO 8bps, ACL-to-loans 1.43%, 60% NPLs current on payments.


**【CEO Opening Remarks】**
- **2024 Performance Highlights**: Adjusted EPS grew by $0.12 (8%) to $1.52, driven by margin expansion, fee income growth, and strong credit performance. Net interest margin (NIM) remained stable at 3.35% despite rate cuts. Countercyclical businesses contributed $55M to pre-provision net revenue.
- **Client Growth**: Average loans +3%, deposits +2%. Net charge-offs (NCO) ratio improved to 18bps (down 10bps YoY). Capital returns totaled $930M via dividends and buybacks.
- **2025 Outlook**: Target flat to +4% revenue growth, 2-4% expense growth, and continued focus on loan demand and deposit pricing flexibility.

**【CFO Financial Review】**
- **Q4 2024 Results**: Adjusted EPS $0.43 (+$0.01 QoQ). NIM +$2M QoQ due to 34bps deposit cost reduction offsetting 28bps loan yield decline. Fee income (ex-deferred comp) +$3M QoQ driven by fixed income trading.
- **Balance Sheet Management**: Restructured $1.2B securities portfolio, reinvesting at +5.1% yield vs. 1.9% sold. Expected $35M annual NII benefit with 2.5-year earnback period. Deposit beta 56% QoQ, retaining 95% of $1.8B repricing CDs.
- **Credit Quality**: NCO ratio 8bps (vs. 10bps Q3), ACL-to-loans 1.43%. Non-performing loans (NPL) +4bps due to multifamily lease-up delays, but 60% of NPLs current on payments.

**【Q&A Key Themes】**
- **Rate Environment**: Management confident in maintaining NIM stability through deposit repricing. 2025 guidance assumes 3 rate cuts, but countercyclical fee businesses hedge NII sensitivity.
- **Loan Growth**: Expect low-single-digit loan growth, driven by C&I and mortgage warehouse lending (2024 +$1.4B new lines). Mortgage warehouse share gains reflect expertise in high-yield lending.
- **Capital Management**: Target CET1 10.5-11%. Buybacks ($163M Q4) and portfolio restructuring demonstrate capital flexibility. No immediate plans to lower CET1 below 10.5% without economic stabilization.
- **Tech Investment**: Completed $100M 3-year tech refresh (GL, TMS). 2025 focus on client-facing innovations like digital banking enhancements.
- **Regulatory Outlook**: Advocating for risk-based capital framework adjustments to reduce compliance costs for mid-sized banks.


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