First Horizon’s stock trades at a forward price/earnings ratio of 11.35, placing it below the regional banking peer median of 13.2. The company offers a quarterly dividend that translates to a 2.5% annual yield, with a payout ratio near 45%, leaving ample coverage for continued increases. Investors seeking income will note that First Horizon has raised its dividend in four of the past five years, reflecting consistent earnings power and management’s commitment to returning capital.

In the fourth quarter of 2025, First Horizon reported adjusted net income of $260 million, a 15% increase from $226 million in Q4 2024. Return on tangible common equity (ROTCE) reached 15.0%, up from 13.2% a year earlier. Net interest margin expanded by 10 basis points to 3.45%, while nonperforming assets declined to 0.55% of total loans. Credit quality remained robust, with charge-offs holding at just 0.20% of average loans, well below the industry average of 0.35%.

During Q4 2025, First Horizon repurchased $120 million of common shares under its existing authorization, representing 1.8% of shares outstanding at the start of the quarter. The board has approved a total repurchase authorization of $500 million through year-end 2026. At current valuation levels, buybacks are expected to contribute approximately 3% to annualized EPS growth, according to management estimates.

Management projects revenue growth of 3–7% in 2026, driven by a 4–6% increase in net interest income as deposit betas lag Fed funds hikes. Mid-single-digit loan growth is anticipated, supported by a 20% year-over-year decline in average mortgage rates since mid-2025 and strong deposit inflows—up $2.3 billion in Q4 alone. Noninterest income is guided to increase 5% as capital markets activity normalizes and fee-based businesses leverage market volatility.