First Horizon Sees Strong Growth Amidst Economic Uncertainty

First Horizon's second-quarter earnings call highlighted the company's strong growth and resilience amidst economic uncertainty. In a conference call on August 12, Chairman, President, and CEO Bryan Jordan presented the bank's results, demonstrating its ability to navigate the challenges of tariffs, interest rates, and an uncertain economic outlook.

According to Jordan, First Horizon's fundamentals in its southern footprint remain good for the back half of 2025 and into 2026. The company's focus on safety and soundness, profitability, and sustainable growth has led to consistently strong credit trends and improved customer confidence.

First Horizon reported an adjusted EPS of $0.45 per share, a $0.03 increase from the prior quarter. This result reflects pre-provision net revenue growth of $4 million from the first quarter and improving credit conditions. The primary driver of this PPNR improvement was a $10 million incremental net interest income, mostly coming from growth in its loan portfolio.

The company's expense discipline remained strong, with total expenses increasing by only $4 million from the last quarter. Its credit portfolio also remains robust, with a charge-off ratio of 22 basis points remaining in line with expectations and a 3 basis point decline to coverage for credit losses, reflecting improvements in mortgage warehouse lending growth and reduced classified loans.

First Horizon's balance sheet saw significant growth this quarter, with period-end balances for both loans and deposits finishing 2% higher quarter-over-quarter. This growth is attributed to the company's commitment to sustainable growth, as stated by Jordan during the conference call.

The bank's Chief Financial Officer, Hope Dmuchowski, provided further details on First Horizon's financial results, highlighting notable items totaling $4 million of pretax impact in the quarter. These included an accrual release in deferred compensation related to a business unit divested more than a decade ago and net interest income growth driven by seasonal loan growth, particularly in its high-yielding mortgage warehouse business.

Overall, First Horizon's second-quarter earnings call demonstrated its resilience amidst economic uncertainty and commitment to sustainable growth. The company's strong credit trends, improved customer confidence, and growing balance sheet are all positives for investors and stakeholders alike.