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Sep 30
First Horizon Q3 2025 Earnings Report
First Horizon reported higher net income, EPS, and net interest income in Q3 2025.
Key Takeaways
First Horizon delivered strong Q3 2025 results, driven by improved net interest income and margin, higher fee income, and a provision credit. Net income and adjusted ROTCE both increased meaningfully.
Net interest income rose to $674 million, supported by loan balance growth and Main Street Lending Program accretion.
EPS reached $0.50 with adjusted EPS at $0.51.
Net income available to common shareholders increased to $254 million.
Provision for credit losses was a positive $5 million, reflecting strong credit quality.
First Horizon
First Horizon
Forward Guidance
Guidance for 2025 remains unchanged with expectations for flat to modest growth in revenue and expenses.
Positive Outlook
- Revenue expected to be flat to up 4% year-over-year.
- Expense guidance reaffirmed with growth expected to be flat to 2%.
- CET1 ratio expected to remain within 10.5% to 11.0% range.
- Credit performance remains strong, aligned with net charge-off expectations.
- Strong performance from counter-cyclical businesses like fixed income supports diversified growth.
Challenges Ahead
- Variable compensation could drive higher expenses depending on fixed income performance.
- Loan growth modest with slight declines in commercial real estate balances.
- Seasonal fluctuations impacted deposit levels slightly.
- Provision levels subject to credit quality changes.
- TBVPS growth dependent on maintaining earnings momentum and capital deployment.