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First Horizon
(NYSE:FHN)
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Rating:64Neutral
Price Target:
$24.50
â–²(0.33% Upside)
Action:Downgraded
Date:10/15/26
The score is primarily supported by solid financial performance (improving margins, steady ROE, and reasonable leverage) and favorable valuation (low P/E and ~2.9% yield). These positives are partially offset by weak technicals (price below key moving averages, negative MACD, low RSI) and mixed near-term risks highlighted on the earnings call (fee pressure, higher expenses/deposit costs, and credit/charge-off uptick), despite constructive guidance tied to the mortgage portfolio sale and resumed buybacks.
Positive Factors
Strategic balance-sheet repositioning
Selling lower-yielding mortgage assets should improve balance-sheet flexibility and allow capital to shift toward higher-yielding lending. Management expects earnings and ROTCE benefits, while the lower loan-to-deposit ratio supports liquidity and creates capacity for future growth.
Negative Factors
Pressure from fees, expenses, and deposit costs
Persistent fee pressure alongside rising operating and deposit costs could limit margin expansion and weaken operating leverage. Competitive funding conditions may require First Horizon to pay more for deposits, reducing the benefit of higher loan yields and constraining near-term earnings quality.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic balance-sheet repositioning
Selling lower-yielding mortgage assets should improve balance-sheet flexibility and allow capital to shift toward higher-yielding lending. Management expects earnings and ROTCE benefits, while the lower loan-to-deposit ratio supports liquidity and creates capacity for future growth.
Read all positive factors
First Horizon Key Performance Indicators (KPIs)
Any
Revenue By Segment
Shows how different business units contribute to total revenue, highlighting areas of strength and potential growth within the company.
Shows how different business units contribute to total revenue, highlighting areas of strength and potential growth within the company.
Data provided by:
The Fly
The FlyFirst Horizon (FHN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.99B
Dividend Yield2.84%
Average Volume (3M)6.45M
Price to Earnings (P/E)16.5
Beta (1Y)1.09
Revenue Growth-7.92%
EPS Growth-15.84%
CountryUS
Employees7,400
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.11
Shares Outstanding473,777,160
10 Day Avg. Volume8,493,311
30 Day Avg. Volume6,449,081
Financial Highlights & Ratios
PEG Ratio0.33
Price to Book (P/B)1.33
Price to Sales (P/S)2.35
P/FCF Ratio12.29
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue3.26
Enterprise Value/Gross Profit4.32
Enterprise Value/Ebitda10.39
Forecast
1Y Price Target
$26.87Price Target Upside10.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)2.14
Revenue Forecast (FY)$3.53B
First Horizon Business Overview & Revenue Model
Company Description
First Horizon Corporation functions as the parent company of First Horizon Bank, offering a diverse range of financial services. Its operations are segmented into three core divisions: Regional Banking, Specialty Banking, and Corporate. The compan...
How the Company Makes Money
First Horizon makes money primarily through a mix of net interest income and noninterest income typical of a regional banking model. (1) Net interest income: The company gathers funding largely through customer deposits (e.g., checking, savings, m...
First Horizon Earnings Call Summary
Earnings Call Date:Oct 15, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 21, 2027
Earnings Call Sentiment Positive
The call was broadly positive. Management emphasized the strategic benefits of selling lower-yielding, nonrelationship mortgage assets, including approximately 4% expected 2027 EPS accretion, a roughly 150-basis-point ROTCE improvement, an approximately 88% loan-to-deposit ratio, continued deposit growth, and additional capacity for higher-yielding lending. The company also highlighted strong credit performance, capital flexibility, share repurchase capacity, and expectations for positive operating leverage. Offsetting concerns included lower quarterly fee income, higher expenses and deposit costs, lower period-end loans, higher net charge-offs, reduced tangible book value, mortgage-market pressure, and a softer revenue outlook comparison. Overall, the stated strategic and financial benefits significantly outweighed the challenges.Positive Updates
Adjusted EPS Growth
Adjusted EPS was $0.53, which Brian Jordan said represented a 4% increase year over year.
Negative Updates
Quarterly Adjusted EPS Decline in Prepared Remarks
Hope Dmuchowski said adjusted EPS declined to $0.53 during the quarter because of lower fee income and slightly higher provision expense.
Read all updates
Q3-2026 Updates
Positive
Negative
Adjusted EPS Growth
Adjusted EPS was $0.53, which Brian Jordan said represented a 4% increase year over year.
Read all positive updates
Company Guidance
First Horizon expects the approximately $4.5 billion mortgage portfolio sale to settle early in the fourth quarter, reduce loan-to-deposit to approximately 88%, provide a 2027 earnings per share benefit of around 4% and improved ROTCE of approximately 150 basis points, with approximately 4% EPS accretion excluding the upside impact of deploying proceeds in incremental lending; share buybacks will resume in Q4, the CET1 target is 10.25% to 10.5%, and approximately half of the $4.5 billion, or a little over $2 billion, could be deployed into incremental loan growth over the next 2 to 3 years. Management expects NIM to improve into the 3.50s, described Q4 NIM as in the 3% range, is targeting approximately 60% deposit beta through the cycle, expects commercial lending spreads on new lending to remain in the mid-100s to mid-200 basis points, expects positive operating leverage next year and into 2027 and 2028, and expects expenses to be inflationary from here on out for expense growth year over year.First Horizon Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.63B | 4.99B | 4.94B | 4.71B | 3.41B | 3.15B |
| Gross Profit | 3.49B | 3.36B | 2.95B | 2.90B | 3.02B | 3.30B |
| EBITDA | 1.45B | 1.34B | 1.11B | 1.23B | 1.24B | 1.33B |
| Net Income | 1.06B | 983.00M | 775.00M | 897.00M | 900.00M | 999.00M |
Balance Sheet | ||||||
| Total Assets | 84.44B | 83.88B | 82.15B | 81.66B | 78.95B | 89.09B |
| Cash, Cash Equivalents and Short-Term Investments | 1.03B | 4.62B | 8.94B | 10.73B | 11.28B | 24.76B |
| Total Debt | 4.32B | 4.57B | 4.59B | 3.70B | 4.10B | 3.71B |
| Total Liabilities | 74.97B | 74.73B | 73.04B | 72.37B | 70.41B | 80.60B |
| Stockholders Equity | 9.17B | 8.85B | 8.82B | 9.00B | 8.25B | 8.20B |
Cash Flow | ||||||
| Free Cash Flow | 1.39B | 955.00M | 1.22B | 1.26B | 2.26B | 672.00M |
| Operating Cash Flow | 1.40B | 988.00M | 1.27B | 1.30B | 2.29B | 725.00M |
| Investing Cash Flow | -2.33B | -1.45B | -1.06B | -2.60B | 8.33B | -4.60B |
| Financing Cash Flow | 1.04B | 524.00M | -404.00M | 1.49B | -10.87B | 4.02B |
First Horizon Technical Analysis
Neutral
24.42
Price Trends
23.90
Negative
24.51
Negative
24.05
Negative
Market Momentum
-0.21
Negative
53.77
Neutral
74.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FHN, the sentiment is Neutral. The current price of 24.42 is above the 20-day moving average (MA) of 23.10, above the 50-day MA of 23.90, and above the 200-day MA of 24.05, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 53.77 is Neutral, neither overbought nor oversold. The STOCH value of 74.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FHN.
First Horizon Risk Analysis
First Horizon disclosed 111 risk factors in its most recent earnings report. First Horizon reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
First Horizon Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $14.40B | 13.03 | 8.04% | 1.77% | 66.97% | -3.45% | |
73 Outperform | $4.33B | 12.67 | 17.61% | 1.91% | 4.88% | 34.03% | |
69 Neutral | $9.95B | 14.39 | 10.23% | 2.38% | 33.25% | 41.46% | |
68 Neutral | $3.69B | 12.00 | 8.13% | 2.33% | 27.48% | 31.72% | |
68 Neutral | $2.58B | 11.50 | 11.98% | 1.57% | 26.41% | 110.85% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $10.99B | 16.45 | 7.91% | 2.84% | -7.92% | -15.84% |
* Financial Sector Average
FHN
First Horizon
23.54
3.54
17.71%
PNFP
Pinnacle Financial Partners
100.46
15.06
17.64%
RNST
Renasant
41.44
7.73
22.92%
SFBS
ServisFirst Bancshares
41.30
6.60
19.01%
SSB
SouthState Corporation
105.22
17.50
19.95%
FBK
FB Financial
53.62
-0.18
-0.34%
First Horizon Corporate Events
Business Operations and StrategyFinancial Disclosures
First Horizon Reports Strategic Q3 Loss Amid Restructuring
Negative
Oct 15, 2026
On October 15, 2026, First Horizon reported a third-quarter 2026 net loss available to common shareholders of $94 million, or $0.20 per share, driven largely by strategic balance sheet actions. The bank reclassified about $4.5 billion of lower-yie...
Business Operations and StrategyRegulatory Filings and Compliance
First Horizon Updates Board Bylaws and Governance Documentation
Neutral
Jul 28, 2026
On July 27, 2026, First Horizon Corporation’s board unanimously approved immediate amendments to Article Seven of its bylaws, removing Section 7.1 and renumbering the remaining provisions. The deleted section, which had outlined conditions f...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.