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5 Insightful Analyst Questions From First Horizon’s Q3 Earnings Call

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First Horizon’s third quarter results outpaced Wall Street’s expectations, yet the market response was notably negative. Management attributed the quarter’s performance to an uptick in loan yields and margin expansion, driven in part by growth in the mortgage warehouse business and a one-time benefit from the Main Street lending program. CFO Hope Dmuchowski emphasized strong retention on repriced deposits and highlighted increased customer activity, particularly in fixed income fees and mortgage operations. CEO D. Bryan Jordan remarked on a “noticeable” uptick in client confidence and pipeline momentum, but also acknowledged the ongoing competition for core deposits and the careful balancing act needed to maintain favorable deposit pricing.

Is now the time to buy FHN? Find out in our full research report (it’s free for active Edge members).

First Horizon (FHN) Q3 CY2025 Highlights:

  • Revenue: $889 million vs analyst estimates of $841.9 million (7.5% year-on-year growth, 5.6% beat)
  • Adjusted EPS: $0.51 vs analyst estimates of $0.45 (14.6% beat)
  • Adjusted Operating Income: $355 million vs analyst estimates of $342.9 million (39.9% margin, 3.5% beat)
  • Market Capitalization: $10.39 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From First Horizon’s Q3 Earnings Call

  • Jon Arfstrom (RBC Capital Markets) asked about the recent increase in client confidence and pipeline activity. CEO D. Bryan Jordan responded that confidence has “noticeably” improved and is expected to be sustainable if macro trends hold.
  • Casey Haire (Autonomous) pressed on the apparent decline in core deposits and the outlook for deposit growth. CFO Hope Dmuchowski clarified the composition of deposits and emphasized the bank’s strong retention, while Jordan highlighted a new Head of Consumer Banking and renewed focus on core deposit momentum.
  • Ben Gurlinger (Citi) questioned whether First Horizon is removing itself as a potential seller amid M&A speculation. Jordan reiterated the company’s focus on long-term value creation, stating that the bank is “not for sale” but remains open to shareholder value-maximizing options.
  • Jared Shaw (Barclays Capital) inquired about credit trends and the allowance for credit losses (ACL). Chief Credit Officer Thomas Hung explained the decrease was driven by positive loan upgrades and updated Moody’s economic outlooks.
  • Janet Leigh (TD Cowen) asked about the sustainability of fixed income fee growth at FHN Financial. Dmuchowski said recent strength was driven by anticipation of rate cuts and may not persist if market conditions shift.

Catalysts in Upcoming Quarters

Looking forward, the StockStory team will be watching (1) the pace and sustainability of loan growth as rate cuts materialize and economic confidence builds, (2) the impact of deposit pricing strategies and new client acquisition efforts on core deposit balances, and (3) management’s ability to execute on $100 million-plus pre-tax net revenue opportunities while maintaining expense discipline. We will also closely monitor any signals of M&A activity as the regulatory environment evolves.

First Horizon currently trades at $20.74, down from $23.01 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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