FHN Stock Forecast & Price Target

First Horizon Corp exhibited a strong financial performance with a notable increase in net interest income of $34 million quarter-over-quarter, reaching $675 million, driven by a 15 basis points increase in the net interest margin to 3.55%. Additionally, the organization successfully redeemed all of its Series B preferred stock for $80 million, and its tangible book value grew by 2.7% quarter-over-quarter, signaling overall financial stability. Furthermore, the completion of the IBERIA acquisition has enhanced First Horizon's competitive stance in attractive markets by adding 191 branches and expanding its reach into four new states, which is expected to bolster future growth.

First Horizon Corp's stock has experienced a significant decline of over 9% due to unexpected comments regarding mergers and acquisitions during the recent earnings call, overshadowing otherwise positive quarter trends. The bank's provision expense decreased, resulting in a $5 million benefit, yet its 2026 earnings per share forecast remains below the peer median growth rate, indicating potential underperformance relative to competitors. Additionally, the average deposits saw a decline of approximately $1.1 billion year-to-date, combined with rising nonperforming assets, which peaked at 0.94% of loans, raising concerns about the bank's financial health and stability moving forward.