First Horizon Corporation (FHN): History, Ownership, Mission, How It Works & Makes Money

First Horizon Corporation (FHN) is a regional banking player, but does its recent performance suggest it's a safe anchor in a volatile financial sector?

Looking at the numbers, the company reported third-quarter 2025 adjusted net income available to common shareholders of $263 million (Earnings Per Share of $0.51), with total assets standing strong at $83.2 billion as of September 30, 2025.

That kind of consistent execution, which led to a Q3 revenue beat of $889 million, is defintely why Wall Street analysts maintain a 'Moderate Buy' consensus; so, you need to understand the history and business model that drives this regional powerhouse to see where the real opportunities lie.

First Horizon Corporation (FHN) History

First Horizon Corporation's Founding Timeline

The story of First Horizon Corporation starts in the aftermath of the Civil War, a time when Memphis, Tennessee, desperately needed financial stability to rebuild. This context is key; the bank wasn't just a business venture, but a civic necessity.

Year established

The company was established on March 25, 1864, as the First National Bank of Memphis.

Original location

Memphis, Tennessee, which remains the corporate headquarters today.

Founding team members

The sole founder was Ohio businessman Frank S. Davis, who recognized the critical need for banking and credit services to finance the city's commercial growth.

Initial capital/funding

The bank was launched with an initial capital of $25,000. To put that in perspective, that was a substantial sum for a national bank charter during the Civil War era.

First Horizon Corporation's Evolution Milestones

The company's history is a steady march of strategic expansion and rebranding, moving from a single-city institution to a regional powerhouse. We see a clear pattern of growth via acquisition, followed by periods of consolidation and re-focus.

First Horizon Corporation's Transformative Moments

You can't run a company for over 160 years without navigating some serious inflection points. For First Horizon Corporation, the most transformative moments involved major M&A activity and a recent, high-profile strategic pivot.

The 2020 merger with IBERIABANK Corporation was a game-changer, creating a combined entity with over $80 billion in assets and a diversified business model across the Southeast. That move gave the company the scale it needed to compete with larger regional banks.

A more recent, equally significant moment was the termination of the merger agreement with Toronto-Dominion Bank. This decision, though disappointing for some shareholders, forced the company to double down on an independent, organic growth strategy. So, instead of being absorbed, the focus shifted inward.

Here's the quick math on their current performance and strategy:

• The company reported total assets of $83.2 billion as of September 30, 2025.
• Q3 2025 Net Income Available to Common Shareholders was $254 million, or $0.50 per share.
• Management is targeting a near-term Common Equity Tier 1 (CET1) ratio of 10.75%, a strong capital position.
• Analysts estimate full-year 2025 earnings per share (EPS) to land between $1.54 and $1.67.

The current strategic plan, approved in late 2023, centers on profitability, accelerating technology transformation, and elevating people to drive enhanced shareholder returns. They're prioritizing organic growth over large-scale M&A, plus they're heavily investing in technology, using AI to improve efficiency and developing a new Digital Consumer App. That's a clear action plan for a post-merger-termination world. You can read more about their philosophical foundation in their Mission Statement, Vision, & Core Values of First Horizon Corporation (FHN).

First Horizon Corporation (FHN) Ownership Structure

First Horizon Corporation is a publicly traded bank holding company (NYSE: FHN) with a market capitalization of approximately $10.9 billion as of November 2025, which means its ownership is widely distributed among institutional and retail investors. The company's governance is heavily influenced by large institutional investors, who collectively control the vast majority of its common stock, while corporate insiders hold a small, but vested, stake.

Given Company's Current Status

First Horizon Corporation remains a strong, independent regional financial services company, operating primarily through its subsidiary, First Horizon Bank, across 12 states in the southern U.S. With total assets of $83.2 billion as of September 30, 2025, the company is focused on commercial, private, and consumer banking, alongside specialty services like capital markets and fixed income. Following the termination of its planned merger with Toronto-Dominion Bank (TD), the company announced a significant US$1.2 billion stock repurchase program, signaling confidence in its standalone valuation and commitment to returning capital to shareholders. If you want to dive deeper into the bank's stability, check out Breaking Down First Horizon Corporation (FHN) Financial Health: Key Insights for Investors.

Given Company's Ownership Breakdown

The ownership structure is typical for a major publicly traded bank, dominated by institutional money. This concentration means that decisions by a few large firms-like BlackRock and Vanguard-can significantly impact the stock price and corporate policy. Corporate insiders, including executives and directors, own a small fraction, but their interests are closely aligned with shareholder returns.

Given Company's Leadership

First Horizon Corporation is led by a seasoned management team with an average tenure of four years, steering the organization through a post-merger environment with a focus on core banking profitability and capital management. The board of directors is also highly experienced, with an average tenure of 7.4 years. This experienced leadership is defintely a stabilizing factor in a volatile banking sector.

• D. Bryan Jordan: Chairman of the Board, President, and Chief Executive Officer (CEO). He has served as CEO since 2008, providing over 17 years of continuous leadership.
• Hope Dmuchowski: Senior Executive Vice President and Chief Financial Officer (CFO). She was recently recognized as one of American Banker's Most Powerful Women in Banking 2025, with a total compensation of approximately $3.16 million for the 2025 fiscal year.
• Tammy LoCascio: Senior Executive Vice President and Chief Operating Officer (COO). She is responsible for the company's operational efficiency and strategic execution, with a 2025 total compensation of roughly $4.87 million.
• Anthony J. Restel: Senior Executive Vice President and Chief Banking Officer. He oversees the core banking segments, with a 2025 total compensation of around $4.83 million.
• David T. Popwell: Senior Executive Vice President and Senior Strategic Executive, a key figure in the company's forward planning.

First Horizon Corporation (FHN) Mission and Values

First Horizon Corporation's purpose goes beyond quarterly earnings, focusing instead on a long-term commitment to its clients and the Southeast region. This cultural DNA is built on a clear mandate: help clients, communities, and employees reach their full potential, which in turn drives the financial strength seen in their $83.2 billion in assets as of September 30, 2025.

Honestly, understanding a company's mission and values is just as important as reading their balance sheet; it tells you where the management team is defintely steering the ship.

First Horizon Corporation's Core Purpose

The company's core purpose is about more than just transactions-it's about providing the necessary capital and counsel (expert advice) to foster growth across its footprint. This focus on stakeholder value is what underpins their drive for a sustainable 15% plus adjusted Return on Tangible Common Equity (ROTCE) target in the coming years.

Official Mission Statement

First Horizon Corporation is dedicated to helping our clients, communities, and associates unlock their full potential with capital and counsel. This mission is realized through a commitment to exceptional service, which helps explain why they reported strong adjusted earnings per share of $0.51 in the third quarter of 2025.

• Provide financial solutions with exceptional service to clients and communities.
• Be the best at serving customers, one opportunity at a time.
• Unlock full potential for clients, communities, and associates with capital and counsel.

Vision Statement

The vision statement clearly maps the company's geographic and competitive ambition, defining its long-term aspiration to be a regional leader. This regional focus is key to their strategy, allowing them to execute on initiatives expected to generate more than $100 million in additional pre-tax net revenue (PPNR) opportunities.

• To be the best regional financial services company in the Southeast.

First Horizon Corporation Slogan/Tagline and Core Values

The company's values dictate how they operate every day, translating their mission into concrete actions like the pledge to be 'Here for Good' for their stakeholders. They also encourage all employees to 'Own the Moment' by delivering for clients.

These values are the cultural pillars that support their operations across the 12 states they serve, ensuring consistency in service delivery. You can read more about their foundational principles here: Mission Statement, Vision, & Core Values of First Horizon Corporation (FHN).

• Slogan/Tagline: 'Here for Good' (reflecting community commitment).
• Action Mantra: 'Own the Moment' (focusing on stakeholder delivery).
• Core Values:
  • We put clients first.
  • We care about people.
  • We're committed to excellence.
  • We expand access.
  • We foster team success.

First Horizon Corporation (FHN) How It Works

First Horizon Corporation operates as a diversified regional financial services company, primarily generating revenue by taking deposits and using that capital to fund a substantial loan portfolio. This classic banking model is enhanced by a growing mix of fee-based services, like wealth management, which helps stabilize earnings in a changing interest rate environment.

First Horizon Corporation's Product/Service Portfolio

First Horizon Corporation's Operational Framework

The company's operational framework is built on three pillars: safety and soundness, profitability, and growth, in that order. Value creation starts with disciplined underwriting, which kept the net charge-off rate low at 18 basis points in 2024, signaling strong credit quality heading into 2025.

The core of the business is the spread between interest earned on assets (like loans) and interest paid on liabilities (like deposits)-known as net interest income. This stream accounted for approximately 79% of total revenue in 2024. The remaining revenue comes from noninterest income, including fees from wealth management, capital markets, and service charges.

• Fund loans using a stable deposit base, which totaled around $66 billion at year-end 2024.
• Invest $100 million over three years in technology, focusing on AI-powered solutions and cloud platforms to improve customer experience and operational efficiency.
• Maintain a strong capital buffer; the Common Equity Tier 1 (CET1) ratio was 11.2% at year-end 2024, well above regulatory minimums.
• Drive profitability: Q3 2025 adjusted earnings per share (EPS) reached $0.51.

Honestly, the focus is on being defintely prepared for the next wave of regulatory expectations as the company expects to cross $100 billion in assets soon. Mission Statement, Vision, & Core Values of First Horizon Corporation (FHN).

First Horizon Corporation's Strategic Advantages

First Horizon Corporation's market success is rooted in its geographic concentration and business diversification, allowing it to capture outsized growth in the U.S. Southeast. Total assets stood at $83.2 billion as of September 30, 2025, providing significant scale.

• Attractive Geographic Footprint: Operates in 12 states across the southern U.S., including 10 of the top 25 fastest-growing metro areas by GDP, which provides a natural growth tailwind.
• Diversified Revenue Mix: The mix of commercial banking, consumer services, and fee-based wealth management reduces earnings volatility when economic inputs change.
• Regional Market Dominance: Holds a deep-rooted presence, particularly in Tennessee, with a 13% deposit market share, translating to strong brand recognition and a loyal customer base.
• Technology-Driven Efficiency: Strategic investments in digital banking capabilities are aimed at enhancing customer self-service and lowering the cost-to-serve.

The company's trailing twelve-month revenue ending September 30, 2025, was $4.886 billion, showing its ability to generate significant income from its regional model. This regional focus allows for stronger customer relationships compared to larger, national competitors.

First Horizon Corporation (FHN) How It Makes Money

First Horizon Corporation, like most regional banks, primarily makes money through the classic banking model: borrowing money at a lower rate (deposits) and lending it out at a higher rate (loans), a process known as generating Net Interest Income (NII). They also earn a significant portion of their revenue from non-interest activities, which are fees for services like wealth management, fixed income trading, and mortgage operations.

First Horizon Corporation's Revenue Breakdown

In the third quarter of 2025, First Horizon's total revenue reached approximately $889 million, showing a healthy diversification between core lending activities and fee-based services.

The Net Interest Income (NII) of $674 million in Q3 2025 is the core engine, driven by the size and yield of their loan portfolio. The Non-Interest Income, totaling $215 million, provides a crucial buffer against interest rate volatility, coming from areas like FHN Financial's fixed income activities and mortgage fees.

Business Economics

The profitability of First Horizon hinges on its ability to manage its Net Interest Margin (NIM) and maintain disciplined credit quality. It's a simple, yet defintely challenging, balancing act in a competitive market.

• Net Interest Margin (NIM): The company reported a strong NIM of 3.6% (on a fully taxable equivalent basis) in Q3 2025, a significant beat of analyst estimates. This margin expansion was mainly due to higher loan yields, especially in the high-yielding mortgage warehouse business.
• Deposit Pricing Discipline: In the current rate environment, retaining low-cost deposits is key. Management highlighted retaining approximately 97% of repriced client balances in Q3 2025, which shows strong customer loyalty and effective deposit pricing. The average rate paid on interest-bearing deposits was 2.78% for the quarter.
• Loan Portfolio Mix: Growth in the mortgage warehouse segment, which provides short-term funding to mortgage originators, has been a material driver of NII growth, contributing to a 14 basis point expansion of total loan yield. This segment is seasonal, but its high yield boosts the overall loan portfolio performance.

Here's the quick math: if your cost of funds rises slower than your loan yields, your NIM expands, and that's exactly what happened in Q3 2025. This focus on relationship-driven banking helps keep deposit costs under control. You can see more about who is investing in this model at Exploring First Horizon Corporation (FHN) Investor Profile: Who's Buying and Why?

First Horizon Corporation's Financial Performance

As of Q3 2025, the company's financial health indicators reflect a strong quarter, underscoring management's focus on profitability and asset quality. This is a regional bank with $83.2 billion in assets, so these metrics matter for stability.

• Adjusted Earnings Per Share (EPS): Reached $0.51 in Q3 2025, up from $0.45 in the prior quarter.
• Adjusted Return on Tangible Common Equity (ROTCE): Grew to 15% in Q3 2025, a strong indicator of efficient capital use.
• Efficiency Ratio: Stood at 61.9% in Q3 2025. While this is higher than some peers, it shows the cost of generating a dollar of revenue.
• Credit Quality: The Net Charge-off Ratio remained low at 0.2% of average loans, signaling disciplined underwriting and a healthy loan portfolio.
• Capital Strength (CET1 Ratio): The Common Equity Tier 1 (CET1) ratio, a key measure of a bank's ability to withstand financial stress, was strong at 11.0% as of Q2 2025, well within the target range.

What this estimate hides is the ongoing competition for core deposits, which puts constant pressure on that 3.6% NIM. Still, the 15% ROTCE shows they are generating excellent returns for shareholders right now. Next step: Portfolio Manager: Assess the sustainability of the 0.2% net charge-off ratio against regional economic forecasts by the end of the month.

First Horizon Corporation (FHN) Market Position & Future Outlook

First Horizon Corporation is a resilient regional bank, currently focused on organic growth and capital return after its failed acquisition, with a strong presence in the high-growth Southeast U.S. markets. The company's future outlook is one of modest, disciplined growth, targeting a full-year 2025 revenue of approximately $3.38 billion and an average Earnings Per Share (EPS) of around $1.69, driven by expense control and fee-based income momentum.

The strategic pivot involves aggressive share repurchases, with a new program authorizing up to $1.2 billion in buybacks, while simultaneously investing in a multi-year technology modernization to enhance efficiency and customer experience.

Competitive Landscape

In the regional banking space, First Horizon Corporation competes directly with larger, more diversified financial institutions, primarily in the Southeastern and Midwestern U.S. markets. While its national deposit market share is small, its local market presence is significant. For example, in a key Tennessee market, First Horizon Bank holds a leading deposit market share of approximately 19.53%, illustrating its local strength against super-regional players.

Opportunities & Challenges

The company's strategy is to capitalize on its core strengths while navigating persistent macroeconomic headwinds, especially around funding costs and credit quality.

Industry Position

First Horizon Corporation, with assets of approximately $83.2 billion as of September 30, 2025, is firmly positioned as a leading regional financial services provider in the Southern U.S.

• The bank's diversified business mix, which includes commercial, private, and specialty banking, provides a buffer against volatility in traditional lending.
• Its Q3 2025 adjusted Net Income Available to Common Shareholders of $263 million and EPS of $0.51 demonstrate solid operational execution and profitability.
• The company's focus on an 'interest rate-neutral' balance sheet is a key defensive strategy against the current rate environment, distinguishing it from peers with higher rate sensitivity.
• A strong Common Equity Tier 1 (CET1) ratio, which management is aiming to reduce toward a near-term target of 10.75%, signals robust capital adequacy and supports the increased capital return to shareholders.
• For a deeper dive into the numbers, you can read our full analysis on Breaking Down First Horizon Corporation (FHN) Financial Health: Key Insights for Investors.

The defintely clear path forward involves leveraging its core deposit base to fund profitable loan growth and maintaining a tight grip on expenses. That's the quick math for sustained performance.