First Horizon Corporation is the bank holding company for First Horizon Bank, providing a range of financial services through its Regional Banking, Specialty Banking, and Corporate segments. Its offerings include commercial, business, and consumer banking, as well as wealth management, trust and asset management, and specialized lending in areas such as commercial real estate, equipment finance, energy, healthcare, and transportation. The company also provides fixed income securities sales and trading, underwriting, loan syndications, and mortgage origination services. Formerly known as First Horizon National Corporation, it changed its name to First Horizon Corporation in April 2004. Founded in 1864, it is headquartered in Memphis, Tennessee.
Fed Rate Hike Seen Lifting First Horizon Net Interest Income
The Federal Reserve's latest 25-basis-point rate hike to a target of 3.75-4% could provide another tailwind to First Horizon Corporation's net interest income, or NII, as the bank enters a favorable asset-repricing cycle. First Horizon appears well-positioned for higher rates, with 58% of loans variable rate and another 12% in adjustable-rate mortgages as of June 2026, while about $5 billion of fixed-rate loans and $1 billion of lower-yielding securities are set to mature or generate cash flows over the next year. The company estimates that a 100-basis-point rate increase would boost NII by 2.9% over 12 months, suggesting the latest 25-basis-point hike should be modestly positive, though the benefit will depend on deposit pricing and balance-sheet trends. In the second quarter of 2026, First Horizon's NII increased 5% year over year to $679 million, while its net interest margin expanded 9 basis points to 3.49%, though its interest-bearing deposit rate rose to 2.33% as brokered deposits increased. Among peers, Bank of America's NII is estimated to rise by $1 billion over 12 months from a 100-basis-point parallel rate increase, and Citigroup's by $1.2 billion, though higher deposit costs and potential securities losses could temper those benefits.
FHN · Monetary · Positive Fed's 25bp hike to 3.75-4% should modestly lift First Horizon's NII given 58% variable-rate loans and a favorable asset-repricing cycle.
EFFR.MM · Monetary · Positive The Fed raised the target rate by 25bp to 3.75-4%, lifting the effective federal funds rate.
US-10Y.GB · Monetary · Positive The Fed's 25bp rate hike implies higher short-term policy rates, which typically push Treasury yields up.
BAC · Monetary · Neutral Mentioned only as a peer: BofA's NII estimated to rise $1B from a 100bp rate hike, but higher deposit costs and securities losses could temper the benefit.
C · Monetary · Neutral Mentioned only as a peer: Citigroup's NII estimated to rise $1.2B from a 100bp rate hike, though higher deposit costs and potential securities losses could offset.
First Horizon Corporation reported second-quarter net income of $260 million, up 12% year-over-year, with adjusted earnings per share rising 20% and beating the consensus estimate by a penny. Jim Cramer endorsed the stock as terrific and very inexpensive on his Mad Money show, but the shares now trade at 1.77 times tangible book value, a 10% premium to their 10-year average, suggesting the market has already priced in the strong results. Loans grew roughly $2 billion year-over-year, deposits increased $1.6 billion sequentially, and return on equity climbed above 15%, while aggressive buybacks shrank the share count by nearly 7%. Hedge fund ownership dipped to 54 funds from 57 in the prior quarter, yet institutional support remains robust, and short float fell to 2.73% from 3.50%.
First Horizon Appoints Scott Serpico and Catherine Wood to Lead Product and Commercial Banking Strategy
First Horizon has appointed Scott Serpico as Senior Vice President, Head of Product, and Catherine Wood as Senior Vice President, Head of Commercial Banking Strategy. Both leaders are tasked with advancing major initiatives in product expansion and commercial banking technology, including the use of AI. The appointments come as the stock trades at $25.53, up 15% over the past year, with a consensus analyst target of $27.95. Investors may track how Serpico and Wood shape new offerings and client adoption, and whether these initiatives influence margins and returns relative to the current share price.
FHN · Technology · Neutral Appointments to lead product expansion and commercial banking technology, including AI, but impact on financials is uncertain.
First Horizon Reports 12% Rise in Net Income to $260 Million in Q2 2026
First Horizon Corporation reported net income available to common shareholders of $260 million for the second quarter of 2026, a 12% increase from the same period last year. Diluted earnings per share rose 20% to $0.54, while adjusted pre-provision net revenue grew 8% to $364 million, driven by loan growth and relationship profitability. Net interest income on a taxable-equivalent basis reached $679 million, up $9 million sequentially, though net interest margin compressed three basis points to 3.49% due to higher deposit costs from brokered funding. Average loan balances increased $1.5 billion to $64.7 billion, with period-end loans at $65.3 billion, reflecting $1 billion in commercial loan growth. Period-end deposits rose $1.6 billion to $68.1 billion, primarily from brokered deposits, while the cumulative deposit beta since September 2024 stood at 66%. The company repurchased $100 million in shares and reiterated full-year 2026 revenue growth guidance of 3% to 7%.
First Horizon expects ~10% standardized RWA reduction while managing CET1 around 10.5%
First Horizon Corporation expects an approximate 10% reduction in risk-weighted assets under the standardized approach of the proposed Basel III rules, while managing its Common Equity Tier 1 ratio around 10.5%. Senior EVP and CFO Hope Dmuchowski disclosed the RWA estimate during the company's second-quarter 2026 earnings call, where management also reiterated its full-year framework amid rate-path uncertainty. The bank reported adjusted earnings per share of $0.54, up $0.01 from the prior quarter, and period-end loan growth of $953 million driven by $1 billion in commercial loan growth. Dmuchowski noted that net interest margin compressed by 3 basis points to settle in the high 3.40s, while the average rate paid on interest-bearing deposits increased to 2.33%. The company repurchased 4 million shares for $100 million during the quarter and emphasized that loan growth remains the top capital priority, followed by dividends and buybacks.
Johnson & Johnson, ASML, Morgan Stanley, BlackRock, and Elevance Health report earnings before Wednesday's open
Major earnings are expected before the bell on Wednesday, including Johnson & Johnson, ASML Holding, Morgan Stanley, BlackRock, and Elevance Health. Other companies slated to release results before the open include Conagra Brands, Cintas, First Horizon, M&T Bank, Nel ASA, Progressive, PNC Financial Services, Sify Technologies, and TRX Gold.
First Horizon to Report Earnings Wednesday Morning
Regional banking company First Horizon will report earnings this Wednesday morning. The market expects revenue to grow 5.6% year on year, an improvement from the 1.8% increase recorded in the same quarter last year. Analysts have generally reconfirmed their estimates over the last 30 days, though the company has missed Wall Street's revenue estimates multiple times over the last two years. First Horizon's stock is up 4.4% over the last month, heading into earnings with an average analyst price target of $28.03 compared to the current share price of $25.82.
StockStory flags Watsco, Illumina, and First Horizon as mid-cap stocks to avoid
StockStory has identified three mid-cap stocks that raise concerns for investors. Watsco, with a market cap of $15.43 billion, saw flat sales over the last two years and a 3.7% annual decline in earnings per share, partly due to shareholder dilution. Illumina, valued at $25.15 billion, also experienced flat sales over the same period and posted a return on capital of just 0.7%, signaling difficulty in finding profitable growth. First Horizon, a $11.86 billion bank, reported slower net interest income growth than peers and earnings per share growth of only 5.7% annually over five years, with tangible book value per share growth expected to slow to 5.3%.
Regional Bank M&A Volume Hits $15.1 Billion in First Half of 2026, a Seven-Year High
Merger-and-acquisition activity among U.S. regional banks reached $15.1 billion in the first six months of 2026, the highest level in seven years. Several large deals that were announced in 2025 closed early this year, including PNC Financial Services' merger with FirstBank, Pinnacle Financial Partners' merger with Synovus, Fifth Third's merger with Comerica, and Huntington Bancshares' acquisition of Cadence Bank. These transactions have expanded the acquirers' geographic footprints and deposit bases, and the favorable regulatory climate along with valuation disparities could fuel further consolidation. Potential takeover targets include KeyCorp and Eastern Bankshares, which have faced shareholder activist pressure, as well as lower-valued banks such as First Horizon, FNB Corporation, and Webster Financial.
HBAN · Capital · Positive Huntington Bancshares completed acquisition of Cadence Bank, expanding footprint and deposits.
PNC · Capital · Positive PNC Financial Services completed merger with FirstBank, expanding geographic footprint.
PNFP · Capital · Positive Pinnacle Financial Partners completed merger with Synovus, expanding footprint and deposits.
EBC · Capital · Positive Eastern Bankshares is mentioned as a potential takeover target due to shareholder activist pressure, which could lead to a premium buyout.
FHN · Capital · Positive First Horizon is listed as a lower-valued bank that could be a takeover target, potentially leading to acquisition premium.
FNB · Capital · Positive FNB Corporation is mentioned as a lower-valued bank that could be a takeover target, potentially leading to acquisition premium.
First Horizon Bank Names Craig Bechtel Specialty Director and Group Head of Its Corporate Healthcare Team
First Horizon Bank has appointed Craig Bechtel as Specialty Director and Group Head of its Corporate Healthcare team. Bechtel will lead the team in providing capital and financial services to healthcare clients nationwide, guiding strategic efforts to deliver tailored financial solutions. Kevin Beeson, Executive Vice President and Director of Specialty Banking, highlighted Bechtel's industry knowledge and client-first approach. First Horizon Corp. reported $84.1 billion in assets as of March 31, 2026.
First Horizon Expands Atlanta Leadership Team with Five New Hires
First Horizon Bank has expanded its Atlanta leadership team with the addition of two commercial banking leaders, a private client leader, a trust services regional manager, and a retail market manager. Daniel Bolongaro and Tom Mabon join as senior vice presidents and commercial banking leaders, bringing more than 25 and 35 years of experience respectively. Jeff Fairchild has been promoted to senior vice president and private client leader, while Crystal Aldredge joins as senior vice president and trust services regional manager with over 21 years of experience. Leon Blue has been named senior vice president and retail market manager, overseeing retail banking operations across Georgia and parts of North Florida. The appointments reflect the bank's momentum in the Atlanta market, according to executives Alex Morton and Hunter Hill.
United States