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Investing.com - Raymond James reiterated an Outperform rating and $26.00 price target on First Horizon National (NYSE:FHN) stock following the company’s quarterly results. The stock currently trades at $24.27, delivering a 42% return over the past year with a P/E ratio of 12.89.
The bank’s net interest margin expanded 1 basis point to 3.52%, exceeding Raymond James’ forecast of 3.49% and consensus expectations of 3.47%. The margin expansion offset a slight decline in average earning assets, driving net interest income above projections.
Credit metrics remained stable as the loan loss provision came in lower than expected, with the loan loss reserve ratio declining 2 basis points to 1.13%. Core noninterest expenses fell below forecasts in personnel and outside services categories.
First Horizon’s non-interest bearing deposit mix improved from 23.4% to 23.9%, while interest-bearing deposit costs decreased 25 basis points to 2.28%. The bank repurchased $233 million in shares during the quarter, below the $250 million Raymond James had modeled. According to InvestingPro analysis, management has been aggressively buying back shares, though the stock appears slightly overvalued relative to its Fair Value. The company maintains a dividend yield of 2.8% and has paid dividends consistently for 16 consecutive years.
Tangible book value per share rose 1.0% to $14.34. The company’s 2026 outlook remained essentially unchanged, with a slightly lower full-year Common Equity Tier 1 capital target representing the only modification. InvestingPro offers additional insights with 5 more exclusive ProTips for FHN subscribers, along with comprehensive financial health scores and detailed Pro Research Reports available for this and 1,400+ other US equities.
In other recent news, First Horizon Corporation announced it has completed the sale of 16 million depositary shares of its Series H preferred stock. This transaction was conducted with the involvement of several financial institutions, including Morgan Stanley and Citigroup. Additionally, First Horizon Corporation declared a 13% increase in its quarterly dividend, raising it to $0.17 per share, which will be paid to shareholders in April 2026. The company also announced plans to redeem its Series C preferred stock on May 1, 2026, at a redemption price of $25.00 per depositary share.
In terms of personnel changes, First Horizon Bank appointed Eric Teal as the Chief Investment Officer for its wealth management division. Meanwhile, UBS downgraded First Horizon’s stock rating from Buy to Neutral, citing limited upside potential without further merger announcements. UBS also noted that First Horizon might be a near-term acquirer based on management’s recent comments. These developments reflect First Horizon’s ongoing strategic and financial maneuvers in the market.
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