First Horizon Stock Slides as Regional Bank Lowers Outlook, Earnings Miss

Shares of First Horizon Corp. (FHN) slipped successful intraday trading Wednesday aft nan location slope reported second-quarter results little than analysts expected arsenic little net liking income (NII) deed its profits.

The genitor of First Horizon Bank reported NII of $629 million, down somewhat from nan $631 cardinal it reported past twelvemonth and beneath nan $636 cardinal analysts had projected, according to estimates compiled by Visible Alpha. That helped lead to revenue coming successful beneath estimates astatine $815 million, down from past year's $1.03 billion.

Net income fell to $204 cardinal from past year's $329 million, beneath nan $212 cardinal analysts had expected. On a per-share basis, First Horizon reported profit of $0.34, narrowly missing estimates of $0.36.

First Horizon shares were astir 6% little astatine $16.44 arsenic of 2:15 p.m. ET Wednesday. The KBW Nasdaq Regional Banking Index (KRX) moved higher.

Banks Have Mostly Reported Lower NII successful Recent Results

Banks astatine nan nationalist and location level person successful caller net reports largely reported little NII arsenic deposit costs person risen to offset nan use of higher liking rates connected indebtedness payments. Analysts person projected that interest complaint cuts that markets predict will happen this twelvemonth will negatively effect banks' NII successful nan coming years.

First Horizon besides lowered its full-year NII outlook, projecting it to beryllium down 2% to level compared pinch nan fiscal 2023 people of $2.56 billion, down from erstwhile estimates of a 1% to 4% increase. Analysts task NII to beryllium astir unchanged from past year.

Citizens Financial Group (CFG), which besides reported net Wednesday, likewise posted little NII than nan aforesaid clip past year, falling to $1.41 cardinal from $1.59 billion. Other location banks reporting net this week see M&T Bank (MTB) and Fifth Third Bancorp (FITB).