Regional lender First Horizon posts higher Q2 net income

Overview

• First Horizon Q2 net income rises to $233 mln, EPS at $0.45

• Adjusted net income for Q2 was $229 mln, reflecting growth from prior qtr

• Company highlights strong performance and commitment to profitability and growth

Outlook

• Company sees full year adjusted revenue flat up to 4% compared to 2024

• First Horizon expects 2025 adjusted expense flat up to 2% vs 2024

• Company expects full year CET1 ratio of 10.5% to 11.0%

• Says CET1 ratio outlook reflects expectations for modest loan growth and opportunistic deployment of excess capital

Result Drivers

• GEOGRAPHIC FOOTPRINT - CEO Bryan Jordan attributes strong performance to business model and geographic footprint

• NOTABLE ITEMS - Increase in net income partly due to $3 million after-tax notable items

• EPS GROWTH - EPS increased to $0.45 from $0.41 in prior quarter, driven by operational strengths

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for First Horizon Corp is $23.00, about 7.7% above its July 15 closing price of $21.22

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nPn2xdyFVa