First Horizon Reports Strong 2025 Financials with Increased EPS and $1.2B Share Repurchase Program

summarizeSummary

First Horizon reported strong financial results for 2025, including increased net income and EPS, improved net interest margin, and a significant share repurchase program, maintaining a healthy capital position.

check_boxKey Events

• Strong Financial Performance

  Net income available to common shareholders increased to $956 million in 2025 from $738 million in 2024, with diluted EPS rising to $1.87 from $1.36. Net interest income grew by $111 million to $2.6 billion, and net interest margin expanded by 12 basis points to 3.47%.

• Healthy Capital Position

  The company maintained strong capital ratios, with a CET1 ratio of 10.63% at year-end 2025, comfortably above the 'well-capitalized' threshold, despite a slight decrease from 11.20% in 2024.

• Significant Share Repurchase Program

  First Horizon executed $918 million in common stock repurchases during 2025. A new $1.2 billion common share purchase program was approved in October 2025, replacing a prior program, with $203 million already utilized by year-end.

• Improved Credit Quality

  Provision for credit losses decreased significantly to $65 million in 2025 from $150 million in 2024, reflecting declines in criticized and classified loans and a more favorable portfolio mix. The allowance for loan and lease losses (ALLL) to total loans ratio decreased to 1.15% from 1.30%.

auto_awesomeAnalysis

First Horizon Corporation's annual 10-K filing for fiscal year 2025 reveals robust financial performance, building on the preliminary results previously reported. The company demonstrated significant growth in net income and diluted earnings per share, alongside an expansion in net interest income and margin. Credit quality metrics showed improvement with a lower provision for credit losses, although net charge-offs saw a slight increase. The company's capital position remains strong, well above regulatory requirements, and it actively managed capital through a substantial share repurchase program. While the filing acknowledges ongoing macroeconomic and regulatory uncertainties, the overall financial health and strategic capital management present a positive outlook.