Based on the provided financial report, the title of the article is: "Form 10-K: Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Based on the provided financial report, the title of the article is: "Form 10-K: Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
First Horizon National Corporation (FHN) filed its annual report for the fiscal year ended December 31, 2025. The report highlights the company’s financial performance, including net income of $1.3 billion, a 12% increase from the previous year. Total assets increased by 8% to $74.6 billion, while total deposits grew by 10% to $63.4 billion. The company’s common stock outstanding was 483.2 million shares as of January 30, 2026. FHN’s market value was approximately $10.7 billion as of June 30, 2025. The report also includes information on the company’s preferred stock, depositary shares, and other securities registered under Section 12(b) of the Securities Exchange Act of 1934.
Financial Performance Overview
First Horizon Corporation (FHN) is a financial holding company that provides a range of commercial, consumer, and wealth management services through its subsidiary, First Horizon Bank. In 2025, FHN reported strong financial results, with net income available to common shareholders of $956 million, or $1.87 per diluted share, up from $738 million, or $1.36 per share, in 2024.
The company’s net interest income, which is the difference between interest earned on loans and investments and interest paid on deposits and borrowings, increased by $111 million to $2.6 billion. This was driven by lower deposit pricing and higher loan balances, particularly in high-yielding loans to mortgage companies. FHN’s net interest margin, which measures the profitability of its interest-earning assets, increased to 3.47% in 2025 from 3.35% in 2024.
Provision for credit losses, which covers expected future loan losses, decreased to $65 million in 2025 from $150 million in 2024. This reflected declines in criticized and classified loans, which are loans that show signs of potential repayment problems, as well as a more favorable mix of loans in the portfolio. Net charge-offs, or loans written off as uncollectible, were $120 million in 2025 compared to $112 million in 2024.
Noninterest income, which includes revenue from sources like fixed income trading, deposit fees, and mortgage banking, increased by $118 million, or 17%, to $797 million. This was largely driven by the impact of $91 million in net securities losses in 2024 related to a restructuring of the securities portfolio. Noninterest expense increased by $39 million, or 2%, to $2.1 billion, primarily due to higher personnel, technology, and legal costs.
FHN’s loan portfolio grew by $1.6 billion, or 3%, to $64.2 billion as of the end of 2025, with increases in commercial loans partially offset by declines in commercial real estate (CRE) loans. Deposits also grew, increasing by $1.9 billion, or 3%, to $67.5 billion, as interest-bearing deposits rose while noninterest-bearing deposits declined.
Strengths and Weaknesses
A key strength of FHN is its diversified business model, with a mix of commercial, consumer, and wealth management services that helps to balance risks and generate a stable stream of revenue. The company’s strong net interest income, driven by its ability to maintain a favorable net interest margin, is also a notable strength.
FHN’s credit quality metrics have generally been solid, with nonperforming loans and leases at 0.94% of total loans and leases as of the end of 2025, down slightly from 0.96% in 2024. The company’s allowance for credit losses, which covers expected future loan losses, was 1.31% of total loans and leases at the end of 2025, down from 1.43% a year earlier. These trends suggest that FHN is effectively managing credit risk in its loan portfolio.
One potential weakness is the company’s reliance on net interest income, which accounted for 77% of total revenue in 2025. This makes FHN somewhat vulnerable to changes in interest rates and the yield curve that could compress its net interest margin. The company’s noninterest income, while growing, still makes up a relatively small portion of total revenue compared to many of its peers.
Additionally, FHN has a concentration of loans to mortgage companies, which represented 13% of its commercial and industrial (C&I) loan portfolio as of the end of 2025. While this portfolio has historically performed well, it does expose the company to risks related to the mortgage industry.
Outlook and Future Trends
Looking ahead, FHN’s management is focused on continuing to grow the company’s commercial and consumer lending businesses, while also expanding its wealth management and capital markets capabilities. The company is making strategic investments in technology and risk management to enhance its operations and better serve customers.
One key trend that could impact FHN is the direction of interest rates. If interest rates continue to rise, the company may see further compression in its net interest margin. However, higher rates could also benefit FHN’s lending businesses and allow it to earn more on its securities portfolio.
Another important factor will be the performance of the broader economy. A potential economic slowdown could lead to increased credit losses and reduced loan demand, which would negatively affect FHN’s financial results. The company’s diversified business model and strong credit risk management practices should help mitigate these risks to some degree.
Overall, FHN appears to be in a solid financial position, with strong profitability, a healthy balance sheet, and good asset quality. The company’s focus on strategic growth initiatives and prudent risk management suggest that it is well-positioned to navigate the challenges and opportunities that lie ahead in the financial services industry.