Q: What is First Horizon FHN Q2 2025 Earnings Call Transcript Summary?
First Horizon National (FHN) has presented a mixed outlook in its Q2 2025 earnings call. The company has shown some positive developments, such as an increase in adjusted EPS and net revenue, alongside challenges like a decrease in net interest margin and increased expenses.
Here are the specific viewpoints from the earnings call:
Bullish Points:
- Adjusted EPS increased by $0.03 to $0.45 in Q2 2025.
- Net revenue increased by $4 million in Q2 2025 from Q1 2025.
- Net Interest Income (NII) increased by $10 million quarter over quarter.
- Loan growth of 2% quarter over quarter, including significant increases in loans to mortgage companies and C&I lending.
- Deposit growth of 2% sequentially, driven by $1.6 billion growth in brokered CDs.
- Non-performing loans (NPLs) decreased by four basis points from the previous quarter.
- CET1 Capital Ratio maintained at a near-term target level of 11%.
- Share repurchases of $9 million, with over half of the $1 billion authorization remaining.
- 2025 expense guidance lowered to flat to up 2% for the full year.
- Management identified potential to add $100 million or more from existing business lines via client relationship deepening and synergy execution.
- Long-term ROTCE target of 15%+ over the next two to three years.
Bearish Points:
- Net Interest Margin decreased by two basis points to 3.40% in Q2 2025.
- Total expenses increased by $4 million sequentially in Q2 2025.
- Net charge-offs increased by $5 million to $34 million in Q2 2025.
- Fee income decreased by $3 million sequentially.
- CRE portfolio balances continued to decline due to project payoffs.
- Average rate paid on interest-bearing deposits increased to 2.76% in Q2 2025 from 2.72% in Q1 2025.
For more information about First Horizon National's earnings call, you can read the relevant news: First Horizon FHN Q2 2025 Earnings Call Transcript
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