Track market-moving stories before they get noisy

Key Takeaways FHN's shares gained 9.4% over the past year, slightly outpacing the industry's 8.9% growth.FHN targets mid-single-digit balance-sheet growth in 2026, supported by healthy lending pipelines.Elevated expenses and commercial loan concentration remain key risks despite improving profitability. Shares of First Horizon Corporation (FHN - Free Report) have gained 9.4% in the past year, outperforming the industry’s 8.9% growth.

However, if we compare the company’s price performance with its close peers like BOK Financial Corporation (BOKF - Free Report) and Texas Capital Bancshares, Inc. (TCBI - Free Report) , it appears that FHN shares have underperformed both. In the past year, BOKF shares have rallied 27.4%, while TCBI stock has gained 14.1%.

Price Performance
Image Source: Zacks Investment Research

Does FHN stock have more upside left despite its recent price strength? Let us find out by looking at its fundamentals and growth prospects.

Key Positives of First HorizonRevenue Growth: The company’s revenues have witnessed a six-year compound annual growth rate (CAGR) of 6.5% through 2025, with the growth trend continuing in the first half of 2026. Its NII recorded a six-year CAGR of 13.8% through 2025, supported by balance-sheet growth and disciplined asset-liability management, with growth continuing in the first half of 2026. Lower funding costs, continued loan growth, relationship-based deposit gathering and reinvestment at higher yields are expected to support NII growth in the upcoming period.

Meanwhile, the company’s non-interest income recorded a six-year CAGR of 3.4% through 2025 and increased in the first half of 2026. Growth in wealth management, treasury management and commercial specialty services is helping FHN to expand its fee-based revenue streams. The strategic partnership with LPL Financial in April 2025 further strengthened its wealth-management capabilities, while the 2020 Iberiabank merger expanded its customer base and cross-selling opportunities. Continued NII growth and broader fee-generating opportunities are expected to support FHN’s top-line performance.

The Zacks Consensus Estimate for FHN’s 2026 and 2027 revenues is pegged at $3.5 billion and $3.7 billion, respectively, which indicate year-over-year growth rates of 3.5% and 3.9%.

Revenue Estimates
Image Source: Zacks Investment Research

Expanding Balance Sheet: The company’s balance sheet remains on a growth trajectory, supported by relationship-driven lending and a diversified banking franchise. Its loans and leases and deposits posted CAGRs of 12.9% and 13%, respectively, from 2019 to 2025, with both growing year over year in the first half of 2026. Commercial and industrial lending and steady mortgage activity are supporting loan growth, while promotional and non-interest-bearing deposits are strengthening the deposit base.

Management expects mid-single-digit balance-sheet growth in 2026, backed by healthy pipelines across business lines and markets. Its regional and specialty banking franchises in high-growth markets are helping attract and retain customers. Continued loan demand, deposit growth and deeper client relationships are expected to support balance-sheet expansion in the coming quarters.

Focus on Profitability Enhancement: FHN is strengthening profitability through revenue growth and disciplined execution. Its adjusted return on tangible common equity reached 15.3% in the second quarter of 2026, marking the fourth consecutive quarter above 15%. Adjusted pre-provision net revenue (PPNR) increased from $750 million in 2019 to $1.46 billion in the first half of 2026, demonstrating the company’s stronger earnings-generating capacity. Building on this momentum, the company is targeting positive operating leverage and sees more than $100 million of additional revenue-driven PPNR opportunity by 2027 through deeper client relationships, higher product penetration and better coordination across business lines.

PPNR Growth Trend
Image Source: First Horizon Corporation

By expanding treasury management, wealth management and regional-specialty partnerships, First Horizon aims to deepen client relationships and increase fee income. Its diversified business model and attractive geographic footprint also support performance across economic cycles. Counter-cyclical businesses, including fixed income, loans to mortgage companies and mortgage banking, can help offset pressure on its asset-sensitive balance sheet when interest rates decline. Overall, revenue diversification and disciplined execution are expected to support sustainable profitability and long-term growth.

Decent Liquidity Supports Capital Returns: FHN maintains a decent liquidity position. As of June 30, 2026, cash and interest-bearing deposits totaled $2.2 billion, while short-term and term borrowings stood at $842 million and $1.3 billion, respectively.

This liquidity position provides FHN with flexibility to support shareholder returns while investing in balance-sheet growth. The company has an active share repurchase program, with $665 million remaining under its $1.2 billion authorization as of June 30, 2026.

Apart from share repurchases, the company continues to return capital through dividends. In January 2026, First Horizon raised its quarterly dividend by 13.3% to 17 cents per share. The company has raised its dividend once over the past five years, resulting in a five-year annualized dividend growth rate of 1.4%. Its current dividend yield of 2.8% compares favorably with the industry average of 2.2%. Meanwhile, BOKF and TCBI offer dividend yields of 1.8% and 0.8%, respectively. Overall, FHN’s liquidity position provides a solid foundation for continued shareholder returns.

Dividend Yield
Image Source: Zacks Investment Research

FHN’s Near-Term HeadwindsElevated Expense Level: The company’s noninterest expenses have increased over the past several years, recording a CAGR of 8.9% from 2019 to 2025. Although management continues to focus on cost control, expenses increased year over year in the first half of 2026. Management expects adjusted expenses, excluding deferred compensation, to remain roughly flat in 2026. However, continued investments in talent, technology and client acquisition may keep the expense base elevated in the near term.

Expense Trend
Image Source: Zacks Investment Research

Loan Concentration Risk: FHN’s loan portfolio remains concentrated in commercial categories. As of June 30, 2026, commercial and industrial (C&I) loans, excluding loans to mortgage companies, and commercial real estate (CRE) loans accounted for about 71% of period-end loans. This concentration increases exposure to economic volatility, particularly if business conditions weaken.

Analyst Sentiments for FHNOver the past week, the Zacks Consensus Estimate for First Horizon’s 2026 and 2027 earnings has remained unchanged, indicating a neutral analyst sentiment. The estimates imply year-over-year growth rates of 13.8% and 8.7% for 2026 and 2027, respectively.

Estimate Revision Trend
Image Source: Zacks Investment Research

Final Thought on First HorizonContinued loan and deposit growth, supported by strong client relationships, is expected to drive NII. The company’s focus on treasury management, wealth management and specialty banking is likely to further diversify revenue and strengthen its fee-generating capabilities. A solid liquidity position should support balance-sheet growth and continued capital returns.

In terms of valuation, FHN stock appears inexpensive relative to the industry. The company is currently trading at a 12-month trailing price-to-earnings (P/E) ratio of 10.8X, which is lower than the industry’s 12.3X.

Price-to-Earnings F12 M
Image Source: Zacks Investment Research

However, investors should remain mindful of the risks. Persistently elevated expenses could weigh on profitability, while FHN’s concentration in commercial lending leaves it vulnerable to potential deterioration in credit quality. Moreover, neutral analyst sentiment toward the company’s earnings outlook suggests limited visibility into near-term growth prospects.

Nevertheless, FHN’s solid capital position, revenue diversification and balance-sheet growth provide a favorable foundation for long-term value creation. Existing investors may continue to hold the stock, while potential investors could wait for stronger earnings momentum and better expense control before taking a more aggressive stance.

Currently, FHN carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 

It has been about a month since the last earnings report for First Horizon National (FHN - Free Report) . Shares have added about 2.4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is First Horizon due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

First Horizon Q2 Earnings Beat Estimates on Higher NII & Fee IncomeFirst Horizon posted second-quarter 2026 earnings per share (EPS) of 54 cents, surpassing the Zacks Consensus Estimate of 52 cents. This compares favorably with 45 cents in the year-ago quarter.

Results benefited from higher net interest income and non-interest income, along with a lower provision for credit losses. Higher loan and deposit balances also provided support. However, rising expenses and weaker capital ratios were headwinds. 

Net income available to its common shareholders was $260 million, up 12% year over year.

Revenues & Expenses RiseTotal quarterly revenues were $887 million, which increased 7% year over year. The top line surpassed the Zacks Consensus Estimate of $873.5 million.

NII increased 5% year over year to $676 million. Additionally, the net interest margin expanded 9 basis points from the prior-year quarter to 3.49%.

Non-interest income was $211 million, rising 12% year over year. The increase reflected growth in brokerage, trust and insurance income, fixed income revenues, mortgage banking revenues and deferred compensation income.

Non-interest expenses increased 8% year over year to $531 million. The rise was mainly due to higher salaries and benefits, outside services, occupancy and equipment, and deferred compensation expenses.

The efficiency ratio was 59.88%, up from 59.20% in the same quarter last year. A rise in the efficiency ratio indicates lower profitability.

Loans & Deposits Balances IncreaseTotal period-end loans and leases, net of unearned income, were $65.3 billion, up 1.5% from the end of the prior quarter. Total period-end deposits were $68.1 billion, increasing 2.4% sequentially.

Credit Quality ImprovesNon-performing loans and leases totaled roughly $531 million, down from $593 million in the prior-year quarter. The non-performing loans and leases ratio declined to 0.81% from 0.94%.

The allowance for credit losses to loans and leases ratio was 1.24%, down from 1.42% in the year-ago quarter.

Net charge-offs were $33 million, down 3% year over year. Provision for credit losses was $15 million compared with $30 million in the year-ago quarter.

Capital Ratios DeclineAs of June 30, 2026, the common equity tier 1 ratio was 10.5%, down from 11% reported at the end of the year-ago quarter.

The total capital ratio was 13.4%, down from 14% a year ago. The tier 1 leverage ratio declined slightly to 10.5% from 10.6% in the prior-year quarter.

Capital DeploymentDuring the quarter, FHN repurchased $100 million worth of shares at an average price of $24.52 per share. The company had $665 million remaining under its share repurchase authorization.

2026 OutlookAdjusted revenues, excluding deferred compensation, are expected to increase 3-7% from the 2025 baseline of $3.42 billion.

The company expects mid-single-digit balance-sheet growth, supported by commercial loan pipelines and continued relationship expansion.

Adjusted expenses, excluding deferred compensation, are projected to remain roughly flat from the 2025 baseline of $2.05 billion.

The net charge-off ratio is expected to be 0.15-0.25%, compared with 0.19% in 2025.

The effective tax rate is projected at 21-23%, although discrete items may cause quarterly variation.

The company continues to target a CET1 ratio of about 10.5%, with the level likely to vary based on loan growth and capital deployment.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.

VGM ScoresCurrently, First Horizon has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, First Horizon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

, /PRNewswire/ -- First Horizon Corporation (NYSE: FHN) (or the "Company") today announced that its board of directors declared a quarterly cash dividend of $0.17 per share on FHN's common stock. The dividend is payable on October 1, 2026, to shareholders of record at the close of business on September 11, 2026.

Preferred Dividend Information

Cash dividends were also declared on the Company's Series E, Series F and Series H Preferred Stock, and on First Horizon Bank's Class A Non-Cumulative Perpetual Preferred Stock, as follows:

FHN Series E

Quarterly cash dividend of $1,625.00 per share on FHN's 6.50% Non-Cumulative Perpetual Preferred Stock, Series E ("Series E Preferred Stock"). This equates to a cash dividend of $0.40625 per Depositary Share (NYSE: FHN PRE), each of which represents a 1/4,000th interest in a share of the Series E Preferred Stock. The dividend is payable on October 13, 2026, to shareholders of record at the close of business on September 28, 2026.

FHN Series F

Quarterly cash dividend of $1,175.00 per share on FHN's 4.70% Non-Cumulative Perpetual Preferred Stock, Series F ("Series F Preferred Stock"). This equates to a cash dividend of $0.29375 per Depositary Share (NYSE: FHN PRF), each of which represents a 1/4,000th interest in a share of the Series F Preferred Stock. The dividend is payable on October 13, 2026, to shareholders of record at the close of business on September 28, 2026.

FHN Series H

Quarterly cash dividend of $1,687.50 per share on FHN's 6.75% Non-Cumulative Perpetual Preferred Stock, Series H ("Series H Preferred Stock"). This equates to a cash dividend of $0.421875 per Depositary Share (NYSE: FHN PRH), each of which represents a 1/4,000th interest in a share of the Series H Preferred Stock. The dividend is payable on October 13, 2026, to shareholders of record at the close of business on September 28, 2026.

First Horizon Bank Class A

Quarterly cash dividend of $12.82318 per share on First Horizon Bank's Class A Non-Cumulative Perpetual Preferred Stock. The dividend is payable on October 13, 2026, to shareholders of record at the close of business on September 28, 2026.

About First Horizon
First Horizon Corporation (NYSE: FHN), with $84.4 billion in assets as of June 30, 2026, is a leading regional financial services company, dedicated to helping our clients, communities and associates unlock their full potential with capital and counsel. Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates in 12 states concentrated in the southern U.S. The Company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services. First Horizon has been recognized as one of the nation's best employers by Fortune and Forbes magazines and a Top 10 Most Reputable U.S. Bank. More information is available at www.FirstHorizon.com.

SOURCE First Horizon Corporation

First Horizon Corporation (NYSE:FHN) will release its second quarter earnings report before the opening bell on Wednesday, July 15.

Analysts expect the Memphis, Tennessee-based company to report quarterly earnings of 53 cents per share, up from 45 cents per share in the year-ago period. The consensus estimate for First Horizon’s quarterly revenue is $881.11 million. It reported $833 million last year, according to Benzinga Pro.

On July 1, First Horizon Bank named Jason Triplett as Western North Carolina Area President for the Mid-Atlantic Region.

First Horizon shares rose 0.7% to close at $25.85 on Monday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

Considering buying FHN stock? Here’s what analysts think:

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