stockrowWhat it does
First Horizon Corporation is a Memphis, Tennessee-based financial holding company led by chairman, president and chief executive Bryan Jordan. The corporation was incorporated in 1968. Its principal subsidiary, First Horizon Bank, was founded in 1864 as First National Bank of Memphis.
The bank takes deposits and makes loans to businesses and individuals. Business lending includes loans for day-to-day operations, commercial real estate, equipment and specialized activities such as healthcare and transportation. Consumer lending includes mortgages and home equity loans. The company also offers small-business banking, private banking, wealth and trust management, financial planning and retail brokerage.
For institutional customers, First Horizon sells and trades fixed-income securities and provides underwriting, portfolio advice and other capital-markets services. Its wholesale business also makes loans to mortgage companies and franchise businesses, originates mortgages and provides banking services to other banks.
First Horizon provides most of these services through First Horizon Bank, supported by subsidiaries that include registered investment advisers, broker-dealers and insurance agencies. At December 31, 2025, the corporation had $84 billion in consolidated assets. It had 7,404 employees at year-end 2025.
How it makes money
First Horizon’s largest revenue source is net interest income: the difference between interest earned on loans, leases and investments and interest paid on deposits and borrowed funds. Its revenue depends on loan and deposit balances, the rates it charges and pays, and the mix of its assets and funding. Competition, economic conditions and monetary policy affect those rates.
In 2025, net interest income was $2.6 billion and noninterest income was $797 million. In the second quarter of 2026, net interest income increased $9 million from the prior quarter.
Commercial, Consumer & Wealth is the larger operating segment. It combines lending and deposit taking with services such as treasury management, wealth management and trust services. Its FY2025 revenue was $3.0 billion. The segment generates both interest income and fees, including charges related to deposits, cash management and other services.
Wholesale’s FY2025 revenue was $489.0 million. Its activities include fixed-income sales and trading, underwriting, portfolio advice, mortgage warehouse lending and mortgage origination. Its revenue mix includes a larger role for noninterest income than the larger banking segment. The Corporate segment reported FY2025 revenue of −$103.0 million.
Fees and trading-related income add to lending revenue, but their level can change with customer activity and market conditions. In the second quarter of 2026, fixed-income revenue fell from the prior quarter, partly offset by higher brokerage, trust and insurance income. First Horizon attributed the fixed-income decline to macroeconomic volatility and uncertainty about interest rates.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Underwriting, Portfolio Advisory, and Other Noninterest Income | $40.0 million | 100.0% | −4.76% |
Customers and how it sells
First Horizon serves individuals, small businesses, larger companies and institutional customers. Its traditional lending and deposit businesses mainly serve customers in markets around its banking centers. Specialized lending and wholesale businesses reach beyond that footprint; fixed-income customers include banks and credit unions as well as money managers, insurers, public funds and pension funds.
At December 31, 2025, First Horizon had over 450 business locations in 23 U.S. states, excluding off-premises ATMs. Most were banking centers in southern states, including Tennessee, North Carolina, Florida and Louisiana. A significant majority of loans originated in Florida, Tennessee, Texas, North Carolina and Louisiana.
The company also serves customers through online and mobile banking and is modernizing digital account opening and payments. In wealth management, it has converted to the LPL platform and has been hiring advisers. First Horizon says the platform has helped it offer more products to existing customers and bring in new ones.
Most of the company’s loans are commercial. Its customers include mortgage companies and businesses in finance and insurance, real estate, healthcare, retail and other industries. Consumer loans are largely secured by residential real estate.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Commercial, Consumer & Wealth | $3.0 billion | 88.7% | 1.37% |
| Wholesale | $489.0 million | 14.3% | 15.3% |
| Corporate | −$103.0 million | −3.01% | — |
Suppliers and costs
First Horizon’s largest funding resource for lending is customer deposits, which also tend to be its lowest-cost funding source. It uses borrowed funds as well. Deposit pricing affects the interest expense deducted from interest earned on loans and other assets.
In 2025, noninterest expense was $2.1 billion, including $1.2 billion of personnel expense. Other costs include occupancy, software, outside services, legal and professional fees, and deposit insurance. Personnel expense rose from 2024 as the company added talent, while software and professional fees rose partly because of investments in technology, risk and products.
In the second quarter of 2026, the average rate paid on interest-bearing deposits increased to 2.33% from the prior quarter. First Horizon attributed higher deposit costs to competition and the mix of its portfolio. Period-end deposits rose from the prior quarter, primarily because of growth in brokered deposits.
The company uses the LPL platform in its wealth business and is investing in its own digital systems, data infrastructure, payments capabilities and fraud prevention.
- Revenue$5.0B
- Cost of revenue−$1.6B
- Selling, general and administrative−$2.1B
- Other operating costs−$38.0M
- Operating income$1.3B
Competitive position
First Horizon competes for loans and deposits with other banks, credit unions and financial institutions. In traditional banking, its principal competitive markets are in the southern United States around its banking centers. Named competitors include Bank of America, JPMorgan Chase, Regions Bank, Truist Bank and Wells Fargo Bank, alongside community banks and credit unions.
Competition also comes from brokerage firms, insurers, specialty finance companies and nonbank providers. Financial technology companies offer checking, savings and payments through digital applications, while private credit firms lend directly to businesses. Some specialized lending businesses operate across multiple regions or nationally rather than being centered on banking locations.
Customers compare providers on loan and deposit rates, fees, breadth and quality of service, convenience, and online and mobile banking. First Horizon says deposit competition in its markets remains significant. Its institutional fixed-income business also competes with securities firms serving geographically dispersed customers.
Our reading: First Horizon’s banking-center footprint and customer relationships provide a regional presence, but the presence is not exclusive where many banks and credit unions compete. Our reading: its range of banking and wealth services supports relationships across products, although pricing and digital convenience limit how much those relationships alone can protect the business.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Bank of America N.A. | Traditional banking in shared markets | Medium |
| JPMorgan Chase Bank National Association | Traditional banking in shared markets | Medium |
| Regions Bank | Traditional banking in shared markets | Medium |
| Truist Bank | Traditional banking in shared markets | Medium |
| Wells Fargo Bank N.A. | Traditional banking in shared markets | Medium |
Growth opportunities
First Horizon’s priorities include expanding consumer and commercial banking services, growing commercial lending and investing in technology and infrastructure. It is modernizing digital account opening and payments, building an enterprise data hub, and improving authentication, fraud prevention and mobile services. It also continues to recruit bankers and develop products for specific markets.
The company is working to grow customer deposits to fund loans. In the second quarter of 2026, period-end loans increased $953 million from the prior quarter, driven by commercial lending. First Horizon said new commitments rose year over year, led by commercial real estate activity, and that construction projects would fund over time. It sees an opportunity for commercial real estate balances to be flat to slightly higher for the year.
Wealth management is another area of investment. Following its conversion to the LPL platform, First Horizon has been hiring wealth advisers and working to offer wealth services to existing commercial clients. The company expects continued benefit from the partnership and adviser additions.
First Horizon also considers acquisitions or strategic transactions when appropriate opportunities arise. Its ability to grow organically depends on attracting and retaining customers, maintaining service while improving operations, and managing the liquidity and capital needed for growth.
- $3.2BFY2021
- $3.5BFY2022
- $5.0BFY2023
- $5.0BFY2024
- $5.0BFY2025
Structural risks
- Credit and the economy: Borrowers may not repay loans, and collateral may not cover losses. In a downturn, First Horizon generally experiences higher credit losses, weaker demand and deterioration in loan quality. Much of its loan book is commercial.
- Interest rates and funding: Changes in interest rates affect the returns on assets and the cost of deposits and borrowing. Deposit levels can change quickly with monetary policy, and a lack of liquidity or higher funding costs could adversely affect the business.
- Competition and execution: The company faces competition for customers and may not execute its growth plans successfully. Growth requires it to retain clients, maintain service, adapt operations and manage capital and liquidity.
- Fraud and cybersecurity: Fraud is an increasing operational risk. Cyber incidents can include account takeovers, payment fraud, ransomware, attacks on customer interfaces and incursions into cloud systems.
- Regulation and legal exposure: Changes in laws, regulations and policies can adversely affect operations and income. The bank and holding company also face restrictions on dividends, while litigation outcomes are uncertain.
- Geography and weather: First Horizon’s lending is concentrated in several southern states. Severe weather and the availability and cost of property insurance are risks in Gulf and southern Atlantic coastal areas.
Bottom line
Our reading
First Horizon is a regional bank centered on commercial lending and deposits, with wealth management and wholesale businesses adding fee and market-related revenue. (item1, item7) Its footprint and broad services support customer relationships, but credit quality, deposit costs and competition remain important to results. (item1, item1a) Recent loan growth gives it more earning assets, while brokered-deposit growth and higher deposit rates show the funding costs accompanying that growth. (call_qa)