First Horizon Reports Strong Full-Year 2025 Earnings with Significant EPS Growth and Positive 2026 Outlook

summarizeSummary

First Horizon's strong full-year 2025 performance, marked by substantial growth in net income and EPS, underscores effective execution of its strategy. The fourth quarter results continued this positive trend, demonstrating resilience in net interest income despite slight margin compression. The significant capital return to shareholders through buybacks, coupled with a healthy CET1 ratio, highlights robust financial management. Furthermore, the company's maintained strong credit quality and a positive 2026 outlook for revenue growth and expense control provide a solid foundation for continued profitability and shareholder value creation. Investors should monitor the company's ability to achieve its 2026 guidance, particularly in managing net interest margin in a potentially declining rate environment.

check_boxKey Events

• Full-Year 2025 Performance

  Net income available to common shareholders (NIAC) increased 29% to $956 million, with diluted EPS rising 38% to $1.87 compared to 2024.

• Fourth Quarter 2025 Results

  Reported net income available to common shareholders of $257 million, or $0.52 diluted EPS, showing a 1% and 4% increase respectively from the prior quarter.

• Capital Deployment

  The company returned $894 million to shareholders through share repurchases in 2025 at an average price of $21.16 per share, ending the year with a CET1 ratio of 10.64%.

• Credit Quality

  Maintained strong credit performance with a provision for credit losses of $0 in Q4 2025 and a net charge-off ratio of 0.19%, while the nonperforming loan ratio decreased to 0.94%.

auto_awesomeAnalysis

First Horizon's strong full-year 2025 performance, marked by substantial growth in net income and EPS, underscores effective execution of its strategy. The fourth quarter results continued this positive trend, demonstrating resilience in net interest income despite slight margin compression. The significant capital return to shareholders through buybacks, coupled with a healthy CET1 ratio, highlights robust financial management. Furthermore, the company's maintained strong credit quality and a positive 2026 outlook for revenue growth and expense control provide a solid foundation for continued profitability and shareholder value creation. Investors should monitor the company's ability to achieve its 2026 guidance, particularly in managing net interest margin in a potentially declining rate environment.