First Horizon Corporation (FHN): Business Model Canvas [Dec-2025 Updated]

You're looking to really understand the engine driving First Horizon Corporation right now, and honestly, the numbers from their Q3 2025 performance tell a compelling story: with revenue hitting $889 million and total assets at $83.2 billion, their model is clearly working. As a seasoned analyst, I see a regional bank successfully blending big-bank capabilities-like managing a $62.8 billion loan book-with personalized service, all while maintaining a strong capital buffer with a CET1 ratio of 10.9%. This canvas breaks down exactly how they generate that $674 million in Net Interest Income and manage costs like their $551 million in noninterest expense; dive in below to see the full blueprint of their strategy.

First Horizon Corporation (FHN) - Canvas Business Model: Key Partnerships

You're looking at the external relationships First Horizon Corporation (FHN) relies on to deliver its value proposition, especially in the digital and community spaces. These aren't just vendors; they're critical enablers for a bank with $83.2 billion in assets as of September 30, 2025. So, let's break down who's in their inner circle.

For the digital front, technology vendors are key to keeping pace. First Horizon Corporation uses partners to run core functions and enhance customer experience. For instance, the bank has a long-standing relationship with FIS, using their AI 360 solution for customer rewards programs since 2012. This system helps First Horizon Corporation reward customers based on their total relationship value, not just simple transactions. Also, First Horizon Corporation migrated its digital-only brand, VirtualBank, to the Apiture Digital Banking Platform, which provides the backbone for its digital experience.

The prompt specified strategic FinTech alliances for money movement, and while Plaid wasn't explicitly detailed in the latest filings I reviewed, the use of partners like Apiture shows a clear strategy of integrating API-driven fintech capabilities. This approach helps First Horizon Corporation compete by offering modern, integrated services.

Community impact is heavily structured through partnerships. The First Horizon Foundation is central here. The bank supports over 1,500 nonprofit organizations across its footprint through the Foundation. To give you a concrete example of recent giving, the 2024 Grants for Good campaign saw the Foundation award $1.6 million to 160 specific nonprofits. The Foundation itself has donated more than $150 million in total since its establishment in 1993.

Community development is also formalized through key advocacy groups. First Horizon Corporation has a history of partnership with the National Community Reinvestment Coalition (NCRC). In May 2023, the bank announced a $50 million commitment to its communities, partly in collaboration with NCRC, underscoring its role in supporting underserved areas. This builds on prior agreements, like the $3.95 billion community benefit plan announced in 2018 with NCRC and its members.

Here's a look at the scale and focus of some of these community-facing partnerships:

Partner Type	Specific Example/Program	Associated Financial/Statistical Data
Technology Vendor (Rewards)	FIS AI 360 Deployment	Relationship in place since 2012.
Technology Vendor (Digital Platform)	Apiture Digital Banking Platform	Used for the VirtualBank digital-only experience.
Community Foundation Support	First Horizon Foundation Grants	Supported over 1,500 nonprofit organizations.
Community Foundation Giving (Recent)	2024 Grants for Good Campaign	$1.6 million awarded to 160 nonprofits.
Community Reinvestment Partner	National Community Reinvestment Coalition (NCRC)	Involved in a $50 million community commitment announced in 2023.

Finally, for capital markets and fixed income services, First Horizon Corporation relies on counterparties for executing trades and providing liquidity, which is essential for a firm offering these services alongside its commercial and private banking lines. These relationships are the plumbing for the capital markets segment of their business, though specific counterparty names and transaction volumes aren't always public domain data points.

You should check the latest Investor Relations presentation from the Goldman Sachs 2025 Financial Services Conference on December 9, 2025, for any updated commentary on these strategic vendor relationships. Finance: draft a list of all current technology contracts over $5 million by next Tuesday.

First Horizon Corporation (FHN) - Canvas Business Model: Key Activities

You're mapping out the core engine of First Horizon Corporation, the day-to-day work that keeps the capital flowing. This is where the rubber meets the road for their regional banking strategy.

Core deposit gathering and loan origination across consumer and commercial segments remain the central focus. This activity is supported by a diversified funding base; deposits are split roughly 50% consumer and 50% commercial, with about a third of total deposits being non-interest-bearing [cite: 9 from previous search]. The bank is actively managing this base, having retained approximately 97% of client balances that experienced repricing events during the third quarter of 2025. Loan origination is geared toward capturing growth in their attractive footprint, which includes 10 of the top 25 fastest growing metro areas by GDP in the U.S. [cite: 15 from previous search].

The scale of the lending operation is substantial. First Horizon Corporation is managing a loan portfolio of approximately $62.8 billion (Q3 2025 average). This portfolio management involves constant monitoring and adjustment across various loan types, as seen in the Q3 2025 mix breakdown, which shows the structure of their outstanding credit balances:

Loan Category Metric	Percentage/Amount
Total Assets (as of September 30, 2025)	$83.2 billion
Average Loans and Leases (Q3 2025)	$62.8 billion
Period-End Deposits (Q3 2025)	$65.5 billion
Variable Rate Loans in Portfolio	56%
Fixed Rate Loans in Portfolio	31%
Adjustable-Rate Loans in Portfolio	13%

The bank is also actively providing specialized wealth, trust, and capital markets services. These non-interest income activities are important for diversification. For instance, in Q3 2025, fee income showed significant contribution from fixed income, with average daily revenue improving by 40% to $771,000 [cite: 2 from previous search]. Mortgage banking income also saw a boost, increasing by $6 million [cite: 2 from previous search].

Executing organic growth strategies in the high-growth Southern U.S. footprint is a key activity driving future performance. The banking subsidiary, First Horizon Bank, operates across 12 states concentrated in the southern U.S. [cite: 7 from previous search]. Management is focused on this geographic advantage, projecting organic loan growth between 5% and 7% for 2026 [cite: 11 from previous search]. This focus is supported by capturing over $100 million in pre-tax net revenue opportunities over the next two years [cite: 4 from previous search].

Finally, a significant operational activity involves ongoing investment and amortization of large technology upgrade projects. First Horizon has committed $100 million to upgrade various systems and technology to enhance competitiveness [cite: 3 from previous search]. These technology investments are central to the strategy, aimed at improving digital banking, wealth management, and treasury management systems [cite: 9 from previous search].

First Horizon Corporation (FHN) - Canvas Business Model: Key Resources

First Horizon Corporation (FHN) relies on several critical assets to execute its business model across the Southern U.S. market.

The scale of the balance sheet provides a foundation for operations. First Horizon Corporation (FHN) reported total assets of $83.2 billion as of September 30, 2025.

Capital strength is a key resource, demonstrated by regulatory ratios. As of March 31, 2025, the Common Equity Tier 1 (CET1) ratio stood at 10.9%. The company's 2025 stress test projected a minimum CET1 ratio of 9.7% under a Severely Adverse Scenario, which is well above the 4.5% regulatory minimum.

Physical and digital infrastructure forms another layer of essential resources.

• Extensive branch network across 12 states concentrated in the Southern U.S., operating 414 branches.
• Proprietary digital banking platforms including TreasuryConnect and BusinessConnect, offering 24/7 access for corporate clients.

The operational capacity supports diversified business lines, which are themselves resources generating revenue and fees.

Metric	Value	Date/Period
Total Assets	$83.2 billion	September 30, 2025
Common Equity Tier 1 (CET1) Ratio	10.9%	March 31, 2025
Projected Stressed Loan Portfolio Loss Rate	2.3%	2025 Stress Test
Q1 2025 Revenue	$812 million	Q1 2025
Q1 2025 Earnings Per Share (EPS)	$0.42	Q1 2025
Net Interest Margin (NIM)	3.42%	Q1 2025

The business model is built upon these tangible and intangible assets, which include the human capital necessary to manage these complex operations. First Horizon Corporation (FHN) offers commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services.

The digital platforms, BusinessConnect and TreasuryConnect, provide different levels of service, with TreasuryConnect designed for power users managing complex cash flow, including payment origination and fraud mitigation.

First Horizon Corporation (FHN) - Canvas Business Model: Value Propositions

You're looking at what First Horizon Corporation offers its clients-the core reason they choose them over a national giant or a smaller community player. It's about getting the scale of a major institution with the feel of a local partner. As of September 30, 2025, First Horizon Corporation held total assets of $83.2 billion. This scale allows them to offer a full suite of services across their 12-state footprint in the southern U.S.. They've earned recognition for this balance, landing on the Forbes America's Best Companies 2026 List and the Forbes Best-In-State Banks 2025 list.

For commercial and private banking clients, the value is in tailored counsel backed by real lending capacity. They aren't just processing applications; they are structuring deals. The loan portfolio stood near $63.1 billion as of Q3 2025. This core lending strength is reflected in their Net Interest Income, which hit $674 million in the third quarter of 2025. Honestly, that NII number shows their balance sheet management is working well in the current rate environment.

When it comes to wealth and trust management for high-net-worth individuals, First Horizon leverages its reputation for reliability. Their regional strategy has paid off in customer perception; for example, their trust services ranked top in seven states in recent customer surveys. You want to see the hard numbers that back up that trust:

Metric	Value (Q3 2025 or Latest)	Context
Total Assets	$83.2 billion	As of September 30, 2025
Loan Portfolio	$63.1 billion	Q3 2025 balance
Net Interest Margin (NIM)	3.6%	Q3 2025 result
Adjusted EPS	$0.51	Q3 2025 result

The experience isn't just inside the branch, either. You expect digital access, and First Horizon delivers a digital-first experience with robust security. This focus on modern tools is weighted heavily in their customer satisfaction metrics. In fact, the recent customer surveys that informed their top rankings polled 26,000 U.S. residents, with digital services being a key factor in their success. It's about convenience meeting confidence.

Finally, there's the commitment to the communities they serve, which is a value proposition for clients who care about where their money is banked. The First Horizon Foundation has donated more than $150 million since its founding in 1993. Just in 2024, they awarded $1.6 million through their Grants for Good campaign to 160 nonprofits. This isn't just marketing fluff; it's capital deployed locally.

• Full-service regional bank with big-bank resources.
• Tailored counsel for commercial and private banking.
• Comprehensive wealth and trust management.
• Digital experience weighted heavily in service scores.
• Community investment exceeding $150 million lifetime.

Finance: draft the Q4 2025 revenue vs. expense forecast by next Tuesday.

First Horizon Corporation (FHN) - Canvas Business Model: Customer Relationships

You're looking at how First Horizon Corporation builds and keeps its client base, which is critical when you're a regional player competing against giants. Honestly, their approach is a blend of old-school banking trust and modern tech efficiency.

The core of the service delivery is a hybrid model combining high-touch, dedicated relationship managers with digital self-service. This isn't just theoretical; the bank is about halfway through its three-year technology initiative as of early 2025. The goal is clear: bring in new bank clients and retain them at 90% plus. This balance means complex commercial or wealth management needs get a dedicated person, while everyday consumer banking moves to the app.

This strategy relies heavily on personalized insights and offers driven by data to deepen client relationships. First Horizon Corporation is actively using a CRM transformation to get a 360-degree view of the customer. They use this data to tailor marketing and product offerings, which is how they aim to boost non-interest income through cross-selling services like wealth management.

A major differentiator in the consumer space is the relationship-based rewards program (FIS AI 360) for total client value. First Horizon Bank deployed FIS AI 360 specifically to reward customers based on the total value of their banking relationship, moving past simple transaction rewards. Since launching this with the checking product suite, they have seen increases in checking product growth and average customer balances, alongside increased relationship depth for those customers. The system rewards across factors like types of accounts held, account balances, and engagement.

Here's a quick snapshot of how those relationship efforts translate into measurable scale and recognition as of late 2025:

Metric/Area	Data Point	Context/Impact
Customer Retention Rate	90% plus	Rate at which new bank clients are retained
Total Assets	$83.2 billion	Scale of the client base as of September 30, 2025
Rewards Program Focus	Total Relationship Value	Basis for rewards via FIS AI 360
Community Recognition	TIME's Best Midsize Companies 2025	Second consecutive year recognition based partly on CSR
Cross-Selling Goal	Deepening existing relationships	Key to boosting non-interest income

The bank also focuses on community-focused engagement to build long-term, defintely trusted ties. This commitment to community is recognized externally; for instance, First Horizon was named to TIME's list of America's Best Midsize Companies of 2025 for the second year running, with corporate social responsibility metrics being a key factor. They also highlight initiatives like Memphis arts funding as part of their brand building. Trust is a stated priority, validated by their inclusion on the Forbes America's Best-In-State Banks 2025 list.

For those times when digital isn't enough, the model includes assisted self-service via call centers and online chat support. While specific call center volume isn't public, the overall strategy supports a seamless omni-channel experience, which customers clearly expect. This ensures that whether a client is using the mobile app or needs to speak to someone, the experience is integrated.

First Horizon Corporation (FHN) - Canvas Business Model: Channels

You're looking at how First Horizon Corporation gets its value proposition-the combination of regional expertise and sophisticated products-into the hands of its customers. The channel strategy here is a deliberate mix of physical presence and digital efficiency, which is key for a bank of its size, standing at $83.2 billion in total assets as of September 30, 2025.

The physical branch network remains a core touchpoint, especially in the southern U.S. First Horizon Bank operates across a 12-state footprint concentrated in the region. While the exact, real-time count is dynamic, as of late November 2025, the FDIC reported 421 domestic locations for First Horizon Bank. This physical network is supported by a history of strategic acquisitions, like the 2020 merger with IberiaBank, which brought in over 190 banking centers across 11 states at that time. The bank still relies on these centers for complex transactions and relationship building, even as digital adoption grows.

Digital channels are clearly a major focus area, backed by significant investment. First Horizon set aside $100 million over a three-year period to upgrade its systems, focusing on customer-facing enhancements after the TD Bank deal ended. This investment supports the mobile banking app and online banking platforms, which are critical for daily customer interactions. Customer surveys show that digital services are a heavily weighted factor in customer satisfaction, suggesting customers expect high performance here. For instance, current Digital Banking customers can reorder checks directly within the platform.

Specialized teams are the delivery mechanism for the higher-value services First Horizon Corporation offers. These teams handle commercial banking, private banking, wealth management, and capital markets. The success of this segment is reflected in the financial results; for the third quarter of 2025, noninterest income rose by $26 million to $215 million, which often correlates with fee-based services delivered by these specialized groups. The bank is also focused on driving Pre-Provision Net Revenue (PPNR) opportunities through consistent execution across its business lines.

For cash access, the ATM network and third-party processors are essential. While a specific ATM count for late 2025 isn't public, the bank clearly defines its fee structure for external access: First Horizon charges a $3 foreign ATM fee whenever you use an ATM outside of its own network. This structure encourages the use of their owned or partner network while monetizing out-of-network usage.

Regarding VirtualBank, a dedicated digital-only experience, the public reports emphasize the overall technology upgrade and digital enhancements across the main First Horizon Bank platform. Specific, standalone operational or asset data for an entity explicitly named 'VirtualBank' was not detailed in the latest financial releases I reviewed. The strategy seems focused on integrating digital capabilities across the existing $83.2 billion asset base.

Here's a quick look at the scale and recent performance tied to these channels:

Metric	Value/Amount	Date/Period
Total Assets	$83.2 billion	September 30, 2025
Physical Banking Centers	421	As of November 28, 2025
States with Branch Operations	12	Ongoing
Technology Upgrade Investment	$100 million	Three-year period post-2023
Q3 2025 Noninterest Income	$215 million	Q3 2025
Foreign ATM Fee	$3	Current Policy

The strategy is clearly about maximizing reach: deep physical penetration in 12 states combined with digital tools that customers can use anywhere. If onboarding for digital services takes 14+ days, churn risk rises, so the efficiency of those digital channels is defintely a near-term operational focus.

Finance: draft 13-week cash view by Friday.

First Horizon Corporation (FHN) - Canvas Business Model: Customer Segments

You're looking at the core of First Horizon Corporation (FHN) as of late 2025. The company, holding $83.2 billion in assets as of September 30, 2025, serves a broad spectrum of clients across its 12 states of operation in the southern U.S.. This dual focus on individuals and businesses is key to their strategy, which is now heavily centered on organic growth after the merger activity settled down.

Here is how First Horizon Corporation structures its customer base, which directly informs where they allocate capital and focus their relationship managers:

• - Commercial Clients: Middle-market businesses needing lending and treasury management.
• - Private Banking/Wealth Management: High-net-worth individuals and families.
• - Consumer Banking: Mass-market individuals for deposits, mortgages, and loans.
• - Small Business Clients: Local enterprises requiring basic banking and small loans.
• - Capital Markets Clients: Institutional investors and corporations for fixed income.

Commercial Clients: Middle-market businesses needing lending and treasury management.

This segment is a major driver of balance sheet activity. You can see the focus in their recent loan growth figures; for instance, the second quarter of 2025 showed an increase of $316 million in Commercial and Industrial (C&I) loans. The strategy here involves deep engagement for treasury products and commercial real estate lending, aiming for cross-selling opportunities to boost revenue. The overall Commercial, Consumer & Wealth segment generated $1.4 billion in pre-tax income in 2024.

Private Banking/Wealth Management: High-net-worth individuals and families.

For wealth services, managed under First Horizon Advisors Inc., the scale is significant, reporting $13.6 B in Assets Under Management (AUM) as of July 31, 2025. This group is not monolithic, so it helps to break down where that AUM comes from:

Client Type	Number of Accounts (as of 7/31/2025)	AUM ($B) (as of 7/31/2025)
Individuals (other than high net worth)	5,562	1.7
Individuals (high net worth individuals)	863	2.0
Pension and profit sharing plans	51	3.4

Honestly, the high-net-worth individuals, while fewer in number at 863 accounts, represent a solid $2.0 billion of that AUM, showing a higher average relationship size than the mass-market individuals.

Consumer Banking: Mass-market individuals for deposits, mortgages, and loans.

This is the high-volume segment, providing the core deposit base. While the most concrete recent acquisition data is from a bit earlier, it shows the scale of their consumer focus: First Horizon gained approximately 24,000 new consumer customers in the summer of 2023. The bank offers essential products like checking, savings, credit cards, and home mortgages to this mass market. The resilience of this segment is important, as the company's loan portfolio stress test loss rate was only 2.3% under severe scenarios, partly due to limiting exposure to higher-loss products like credit cards.

Small Business Clients: Local enterprises requiring basic banking and small loans.

Small business clients are served alongside the larger commercial segment, but they require tailored basic banking and smaller loan facilities. The overall health of the business lending side is reflected in the $689 million increase in loans to mortgage companies seen in Q2 2025, which is a counter-cyclical business that supports the broader lending ecosystem these clients operate in.

Capital Markets Clients: Institutional investors and corporations for fixed income.

First Horizon Corporation supports institutional investors and corporations through its Capital Markets division, with a notable counter-cyclical buffer coming from its fixed income operations. This business line helps stabilize revenue, as executives noted during the September 2025 Barclays Conference presentation that fixed income provides a buffer against economic downturns. The company is actively managing its balance sheet, which includes these capital markets assets, to maintain a near-term Common Equity Tier 1 (CET1) ratio target of 10.75%.

Finance: draft 13-week cash view by Friday.

First Horizon Corporation (FHN) - Canvas Business Model: Cost Structure

You're looking at the expenses First Horizon Corporation racks up to keep the lights on and the balance sheet running. For a bank, the cost structure is dominated by funding costs and the overhead of a physical and digital footprint. Here's the quick math on what they spent recently.

Interest Expense is the cost of funding deposits, which is definitely a major variable cost that moves with the Fed's rate decisions. In the third quarter of 2025, the average rate paid on interest-bearing deposits rose to 2.78%, up from the second quarter average of 2.76%. First Horizon Corporation reported average deposits of $65.9 billion for Q3 2025, showing the scale of the funding base subject to these interest rate costs.

Noninterest Expense for First Horizon Corporation totaled $551 million in Q3 2025. This figure was up from $491 million in Q2 2025 and $511 million in Q3 2024. The efficiency ratio for Q3 2025 was 61.92%, which was slightly up from the prior-year period's 61.89%, suggesting a slight deterioration in profitability efficiency for the quarter.

The components driving this noninterest spend are quite detailed. Personnel Costs, covering salaries, benefits, and commissions for over 7,200 associates (as of December 31, 2024), saw an increase. Excluding deferred compensation, personnel expenses increased by $9 million from the prior quarter, with $6 million of that growth tied to incentives and commissions driven by improved Average Daily Relationships (ADR) in the fixed income business.

For Technology and Data Processing and other operational costs, outside services increased by $8 million quarter-over-quarter. The primary drivers for this increase were project expenses and technology and risk-related spending, though this was partially offset by lower advertising costs as prior campaign expenses shifted to new account promotion payouts within other expense categories.

The cost structure also includes strategic investments and non-recurring items. For instance, Q3 2025 expenses reflected a $20 million contribution to the First Horizon Foundation, an amount noted as being higher to maximize relative tax advantages available for contributions made in 2025. Occupancy and Equipment costs are part of the overall noninterest expense base supporting the network of banking centers concentrated in the southern U.S.

Here is a quick breakdown of some key cost-related figures from the Q3 2025 results:

Cost Metric	Amount	Period/Context
Total Noninterest Expense	$551 million	Q3 2025
Personnel Expense Increase (QoQ)	$9 million	Excluding deferred compensation, Q3 2025 vs Q2 2025
Outside Services Increase (QoQ)	$8 million	Driven by technology/project spend, Q3 2025 vs Q2 2025
Foundation Contribution	$20 million	Included in Q3 2025 expenses
Average Interest-Bearing Deposit Rate	2.78%	Q3 2025 Average

The bank's overall operational spending is managed with an eye on the efficiency ratio, which sits near 62%. You see the impact of personnel incentives flow through when business lines like fixed income perform well, which is a direct link between revenue generation and variable compensation within the cost structure.

The costs associated with the physical footprint, Occupancy and Equipment, support the operations across the 12 states where First Horizon Bank operates its banking centers. While specific line items for this category aren't broken out in the summary data, they are embedded within the total Noninterest Expense of $551 million.

You can see the interplay between funding costs and operating costs in the expense management focus. Finance: draft 13-week cash view by Friday.

First Horizon Corporation (FHN) - Canvas Business Model: Revenue Streams

You're looking at the core engine of First Horizon Corporation (FHN)'s profitability, which, like most banks, rests heavily on the spread between what it earns on assets and what it pays on liabilities. For Q3 2025, this engine was humming along nicely.

Net Interest Income (NII) remains the primary revenue source, totaling $674 million in Q3 2025. This figure represents about 75.8% of the total revenue for the quarter. To give you some context on momentum, NII advanced from $641 million in Q2 2025 and was up from $627 million reported in Q3 2024. The Net Interest Margin (NIM) also expanded by 15 basis points to reach 3.55% for the quarter.

The second major component is Noninterest Income, which acts as a key diversifier. This stream totaled $215 million in Q3 2025, making up the remaining 24.2% of total revenue. This was a sequential improvement, climbing from $189 million in the previous quarter, and up from $200 million reported in Q3 2024. This rise was partly due to a jump in fixed income ADRs (American Depositary Receipts) activity.

Here's the quick math on the top-line performance for the quarter ending September 2025:

Revenue Component	Q3 2025 Amount (Millions USD)	Comparison to Q2 2025
Net Interest Income (NII)	$674	Up from $641 million
Noninterest Income	$215	Up from $189 million
Total Revenue	$889	Up from $833 million

The fee-based revenue is generated across several services, which you need to track to see if the diversification strategy is holding up as interest rates shift. The total Noninterest Income for Q3 2025 was $215 million, which included a rise of $26 million from the prior quarter. The specific breakdown looks like this:

• - Net Interest Income (NII): Primary revenue source, totaling $674 million in Q3 2025.
• - Noninterest Income: Fees from services, totaling $215 million in Q3 2025.
• - Service Charges and Fees: Consumer and commercial account fees.
• - Wealth Management and Trust Fees: Fees from managing client assets.
• - Capital Markets and Fixed Income Fees: Revenue from trading and advisory services, which saw a jump in fixed income ADRs contributing to the overall fee growth.

The performance of the fee income is encouraging, especially since management expects these counter-cyclical fees to help offset asset sensitivity as the Fed moves toward easing. If onboarding takes 14+ days, churn risk rises, but for now, the fee growth shows client activity is strong in key areas.

Finance: draft 13-week cash view by Friday.