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Mar 31
First Horizon Q1 2025 Earnings Report
First Horizon delivered strong financial results in Q1 2025 with margin expansion and disciplined expense control.
Key Takeaways
First Horizon reported a solid Q1 2025 performance, highlighted by EPS growth, stable credit quality, and improved efficiency. Despite slight declines in fee income, the company maintained strong capital ratios and returned significant capital to shareholders.
Adjusted EPS of $0.42, with net income available to common shareholders at $213 million.
CET1 ratio stood at 10.9%, reflecting sound capital management.
Tangible book value per share increased to $13.17, up from $12.85 in Q4.
Strong margin expansion with net interest margin rising 9bps to 3.42%.
First Horizon
First Horizon
Forward Guidance
The company expects flat to modestly growing adjusted revenue in 2025 with continued expense discipline and strong credit quality.
Positive Outlook
- Adjusted revenue expected to grow up to 4% in FY25.
- Net charge-off ratio guided between 0.15%–0.25%, indicating healthy credit quality.
- Maintaining strong CET1 range of 10.5%–11.0%.
- Expense guidance reflects continued efficiency focus.
- Positive outlook on loan and deposit growth in key markets.
Challenges Ahead
- Fee income remains pressured by market volatility.
- Continued seasonality in mortgage and CRE lending.
- Moderate increase in provision for credit losses due to macroeconomic uncertainty.
- Adjusted ROTCE declined slightly QoQ.
- Uncertainty around pace of interest rate cuts may impact NII.