First Horizon Corp Reports Strong Q3 Results

By Philip Seaworth • Wednesday, October 15 12:06 • Permanent Link

First Horizon Corporation (NYSE: FHN) has reported strong third-quarter 2025 results, with net income available to common shareholders (NIAC) of $254 million, representing earnings per share (EPS) of $0.50. This shows an increase of $0.05 from the prior quarter. When adjusted for notable items, the NIAC for the third quarter was $263 million, or $0.51 per share, reflecting an increase of $0.06 from the previous quarter.

The net interest income (NII) increased by $33 million to $678 million, with a net interest margin of 3.55%, up by 15 basis points. Noninterest income also saw a significant increase, rising by $26 million to $215 million, driven by improvement in counter-cyclical businesses, specifically with fixed income revenues increasing by $15 million and mortgage banking revenues increasing by $6 million.

Noninterest expense rose to $551 million, increasing by $59 million from the prior quarter. Notable items in the third quarter included a $2 million expense credit for the FDIC special assessment and a $10 million expense tied to visa derivative valuation expenses.

The average loan and lease balances increased by $236 million compared to the previous quarter, reaching $62.8 billion. Average deposits also saw growth, increasing by $1.2 billion from the second quarter of 2025. However, period-end deposits decreased by $52 million, driven by a decrease in brokered deposits.

The provision for credit losses showed a significant improvement, with a provision credit of $5 million versus an expense of $30 million in the previous quarter. Net charge-offs were $26 million, down from $34 million in the prior quarter.

The CET1 ratio remained consistent at 11.0%, despite NIAC growth and a loan portfolio shrinkage in the quarter being offset by share repurchases totaling $190 million.

The effective income tax rate for the third quarter of 2025 was 22.7%, up from 20.8% in the second quarter of 2025.

As a result of these announcements, the company's shares have moved 2.54% on the market, and are now trading at a price of $23.02. Check out the company's full 8-K submission here.

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