First Horizon Corporation Q3 2025 Earnings Recap

First Horizon reported a strong third quarter with adjusted EPS of $0.51, driven by significant growth in net interest income and robust performance in fee income, indicating effective management of market conditions and a focus on higher profitability relationships.

Key Takeaways

• Adjusted EPS increased by $0.06 quarter-over-quarter, enhancing return on tangible common equity to 15%.
• Net interest income grew by $33 million with a 15 basis point expansion in net interest margin, reaching 3.55%.
• Fee income rose by $26 million, supported by increased customer activity and a significant MSR sale.
• Noninterest-bearing deposits grew by $131 million, reflecting strong deposit retention at 97% during repricing events.
• Credit quality remains stable with a net charge-off ratio of 17 basis points, and the provision for loan losses was a credit of $5 million.