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what it is
First Horizon is a regional bank that takes deposits and makes loans across 416 offices in 12 Southeastern states.
how it gets paid
Last year First Horizon made n/a in revenue. commercial loans was the main engine at n/a, or 56% of sales.
what just happened
First Horizon reported quarterly EPS of $0.52, beating the $0.47 estimate by 10.64%.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
60/100 earnings predictability — reasonably predictable
13.0x trailing p/e — the market's not buying it — or you found a deal
2.9% dividend yield — cash in your pocket every quarter
xvary composite: 59/100 — below average
What they do
First Horizon is a regional bank that takes deposits and makes loans across 416 offices in 12 Southeastern states.
This bank wins the old-fashioned way: it is physically where the growth is. First Horizon has 416 offices across 12 Southeastern states, and management says population migration to the South has helped loan demand. Banking moat → local relationships and branch reach → so what: when your business needs credit, the lender already down the street usually has the first call.
How they make money
n/a
annual revenue
commercial loans
n/a
up
commercial real estate loans
n/a
flat
consumer real estate loans
n/a
flat
consumer loans
n/a
flat
The products that matter
takes deposits and makes loans
regional banking
core earnings engine
this is the heart of a $12B bank trading at 13.0x trailing earnings. if the spread between loan yields and deposit costs tightens, the whole story changes.
valuation driver
consumer and small business relationships
deposit franchise
funding base
for you, this matters because stable deposits help defend the B++ balance sheet and support the 2.9% dividend.
balance sheet support
fees beyond plain-vanilla lending
wealth and fee businesses
supporting income
segment detail isn't broken out here. what you do know is the bank still posts a 16% return on equity, so non-interest income is helping somewhere.
data thin
Key numbers
13.0%
projected EPS growth
That is the main bull case. Earnings growth is expected to accelerate from a 3.0% historical pace to 13.0%.
16%
return on equity
Return on equity → profit generated from shareholder money → so what: 16% says this bank is still producing solid profits on its capital base.
$1.3B
long-term debt
Long-term debt is 10% of capital, which suggests the balance sheet is not leaning too hard on borrowed money.
2.9%
dividend yield
You are getting paid while you wait, and dividend growth is projected at 5.5% versus 5.0% historically.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
- long-term debt $1.3B (10% of capital)
- return on equity 16% — $0.16 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in FHN 3 years ago → it's now worth $11,110.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
First Horizon reported quarterly EPS of $0.52, beating the $0.47 estimate by 10.64%.
That result capped a steady climb from $0.35 in the first quarter of 2024 to $0.52 in the fourth quarter of 2025. Plain English: profits are moving up, even if the reported revenue data here is thin.
$9M
revenue
$0.52
eps
n/a
n/a
the number that mattered
The number that mattered was $0.52, because it beat the $0.47 estimate and matched the highest quarterly EPS in the provided history.
-
loan business is trending favorably at first horizon.
-
the memphis-based bank is well situated in the healthy southeast region of the u.s.management has emphasized relationships with countercyclical companies, providing cushion during periodic domestic downturns.
-
population migration to the south has also been a plus.
-
in recent quarters, commercial & industrial lending has steadily climbed higher.
-
commercial real estate loan tallies have been a bit volatile, but remain at favorable levels.most visibly, though a smaller portion of the total, loans to mortgage companies have picked up nicely. only the commercial real estate segment has had to deal with negative momentum, given customer paydowns of obligations.
source: company earnings report, 2026
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What could go wrong
the #1 risk is deposit-cost pressure squeezing regional bank margins. first horizon does not need a dramatic collapse to disappoint you — it just needs funding costs to stay high while loan economics soften.
high
deposit competition stays expensive
regional banks live on spread income. if first horizon has to keep paying up for deposits, earnings power gets squeezed even when loan demand looks fine.
would pressure margins, earnings, and the case for paying even 13.0x earnings
high
credit losses show up late
banks rarely get hurt by the loans everyone already worries about. they get hurt by the loans that looked fine until they didn't. if credit quality turns, a 16% return on equity can compress quickly.
would hit profitability and likely make the 2.9% yield feel a lot smaller
med
rate cuts help some lines and hurt others
lower rates can boost sentiment around banks, but they can also shrink lending spreads. with revenue detail thin here, you should assume rate sensitivity matters more than the snapshot can prove.
would muddy the earnings path toward the $2.35 estimate
med
the data itself is thinner than you want
there's no clean revenue breakout here, and that matters for a bank. when the disclosure on a snapshot is thin, valuation should carry less confidence than the headline multiple suggests.
with price stability at 35/100, the stock does not get much patience when investors are unsure
with price stability at 35/100 and a below-average 59/100 composite, any hit to earnings would likely matter more than the 2.9% dividend helps.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
the next quarter needs to support the $2.35 EPS path
if management commentary or analyst revisions start cutting into that number, the "cheap bank" argument gets weaker fast.
metric
watch the gap between 13.0x trailing and 10.5x forward earnings
that spread says estimates are doing some of the heavy lifting. if forward earnings fade, the valuation cushion shrinks with them.
flow
institutional appetite improved, but only modestly
264 buyers versus 229 sellers in 3q2025 is constructive. it's not the kind of imbalance that settles the debate on its own.
risk
the stock is near its high while price stability is just 35/100
that's a reminder that regional bank stocks can look calm right before they stop being calm.
Analyst rankings
earnings predictability
60 / 100
in human-speak, analysts think the earnings path is workable but hardly automatic.
valuation setup
13.0x trailing · 10.5x forward
you're paying less for next year's expected earnings than last year's reported ones. that's the appeal — and the trap if estimates fall.
risk profile
rank 3 · stability 35/100
translation: not a crisis stock, not a bunker stock either.
source: institutional data
Institutional activity
264 buyers vs. 229 sellers in 3q2025. total institutional holdings: 0.4B shares.
source: institutional data
Price targets
3-5 year target range
$19
$37
$25
current price
$28
target midpoint · +14% from current · 3-5yr high: $45 (+85% · 18% ann'l return)
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