First Horizon Corporation (FHN): History, Ownership, Mission, How It Works & Makes Money

Ever wonder about the story behind First Horizon Corporation (FHN) and how it operates? With a history dating back to 1864, First Horizon has evolved into a leading regional financial services company with $82.2 billion in assets as of December 31, 2024. Keep reading to discover its journey, ownership structure, and the mission that drives its operations.

What exactly does First Horizon do, and how does it generate revenue? This article dives into the intricacies of First Horizon's business model, exploring its diverse range of services from commercial banking to wealth management, and how these contribute to its financial success; in 2024, the company reported a net income of $738 million, or $1.36 earnings per share.

Who are the key figures and stakeholders shaping First Horizon's direction? Understanding the ownership and leadership provides valuable insights into the company's strategic decisions and future outlook, with major institutional shareholders including BlackRock, Inc. and Vanguard Group Inc.

First Horizon Corporation (FHN) History

Founding Timeline

Year established

The company was established in 1864.

Original location

The company was originally located in Memphis, Tennessee.

Founding team members

The company was founded by Frank S. Davis.

Initial capital/funding

The initial capital was $25,000.

Evolution Milestones

Transformative Moments

• Civil War Impact: The establishment of the First National Bank of Memphis in 1864 was a direct response to the financial instability caused by the Civil War. This foundational move provided essential banking services during a critical period.
• Expansion and Diversification: The formation of First Tennessee National Corporation in 1977 signaled a strategic shift towards expansion and diversification of financial services. This move allowed the company to broaden its market reach and service offerings.
• Strategic Acquisitions: Key acquisitions, such as the 1999 acquisition of MNC American Corporation and the 2020 merger with IBERIABANK, significantly expanded the company's market presence and service capabilities across the Southeast.
• Focus on Core Banking: The decision to sell the fixed income business in 2019 demonstrated a commitment to focusing on core banking activities, streamlining operations for greater efficiency.

To gain more insights into the company's guiding principles, visit: Mission Statement, Vision, & Core Values of First Horizon Corporation (FHN).

First Horizon Corporation (FHN) Ownership Structure

First Horizon Corporation operates with a mixed ownership structure, featuring a combination of institutional, retail, and insider shareholders. Understanding this structure provides insights into the company's governance and strategic direction.

First Horizon Corporation's Current Status

First Horizon Corporation is a publicly traded company, meaning its shares are available for purchase on the stock market by the general public. It is listed on the New York Stock Exchange (NYSE) under the ticker symbol FHN.

First Horizon Corporation's Ownership Breakdown

The ownership of First Horizon Corporation is distributed among various types of shareholders. As of the latest available data, the breakdown is as follows:

First Horizon Corporation's Leadership

The leadership team at First Horizon Corporation plays a crucial role in guiding the company's strategic initiatives and operational execution. Key figures include:

• Chairman, President & Chief Executive Officer: D. Bryan Jordan
• Chief Financial Officer: Hope Dmuchowski
• Chief Risk Officer: Anthony DiNello

These individuals, along with other executive leaders, are responsible for the overall management and performance of First Horizon Corporation. More information about the company's financial standing can be found at: Breaking Down First Horizon Corporation (FHN) Financial Health: Key Insights for Investors

First Horizon Corporation (FHN) Mission and Values

First Horizon Corporation is committed to providing financial solutions with exceptional service and building lasting relationships with its clients and communities, guided by a strong set of core values.

First Horizon's Core Purpose

Official mission statement

First Horizon's mission statement is: To provide financial solutions with exceptional service and build lasting relationships with our clients and communities.

• Focuses on delivering financial solutions.
• Emphasizes exceptional service.
• Aims to build lasting relationships.

Vision statement

First Horizon's vision is to be the premier regional financial services company in the Southeast.

• Aspires to be the leading regional financial services provider.
• Targets the Southeast as its primary market.

Company slogan/tagline

First Horizon's tagline is 'Local Expertise. National Strength.'

• Highlights local expertise.
• Showcases national strength.

For more in-depth information, you can explore: Mission Statement, Vision, & Core Values of First Horizon Corporation (FHN).

First Horizon Corporation (FHN) How It Works

First Horizon Corporation operates as a regional financial services company, providing a range of banking and financial products and services to individuals, businesses, and institutions. The company generates revenue primarily through interest income from loans and other lending products, as well as fees from various services such as wealth management, investment banking, and mortgage banking.

First Horizon Corporation's Product/Service Portfolio

First Horizon Corporation's Operational Framework

First Horizon operates through various segments to deliver its products and services. These segments include regional banking, specialty banking, and corporate. A risk management framework ensures regulatory compliance and financial stability. The company leverages technology to enhance customer experience, streamline operations, and offer digital banking solutions. Key aspects of their operational framework include:

• Customer Relationship Management: Building and maintaining strong customer relationships through personalized service and tailored financial solutions.
• Credit Underwriting: Assessing and managing credit risk through rigorous underwriting standards and monitoring of loan portfolios.
• Branch Network and Digital Channels: Offering convenient access to banking services through a network of branches, ATMs, and online and mobile banking platforms.
• Investment Management: Providing investment advice and portfolio management services through experienced financial advisors.

First Horizon Corporation's Strategic Advantages

First Horizon distinguishes itself through a combination of factors that contribute to its competitive positioning and market success. These advantages enable the company to effectively serve its customer base and achieve sustainable growth.

• Strong Regional Presence: First Horizon has a significant presence in the Southeastern United States, particularly in Tennessee, providing a deep understanding of local markets and customer needs.
• Diversified Business Model: The company's diversified revenue streams, spanning commercial banking, retail banking, and wealth management, mitigate risk and provide stability.
• Customer-Centric Approach: First Horizon emphasizes building long-term relationships with customers by providing personalized service and tailored financial solutions.
• Experienced Management Team: A seasoned leadership team guides the company with expertise in banking, finance, and risk management.

To gain more insight into First Horizon Corporation's values, explore Mission Statement, Vision, & Core Values of First Horizon Corporation (FHN).

First Horizon Corporation (FHN) How It Makes Money

First Horizon Corporation primarily generates revenue through traditional banking activities, including taking deposits and providing loans, as well as through wealth management and investment services.

First Horizon Corporation's Revenue Breakdown

While precise, up-to-the-minute revenue breakdowns for the complete fiscal year 2024 are not available, the following table provides a generalized illustration based on typical banking revenue streams. Note that actual percentages may vary.

First Horizon Corporation's Business Economics

First Horizon's business economics are driven by several key factors:

• Interest Rate Spread: The difference between the interest earned on loans and the interest paid on deposits significantly impacts profitability. Wider spreads typically lead to higher profits.
• Loan Volume: The amount of loans the bank issues affects revenue. Growth in loan volume can increase net interest income, but it also carries credit risk.
• Fee Income: Revenue from services like account maintenance, overdrafts, and wealth management contributes to the bottom line.
• Operating Efficiency: Managing costs effectively, including salaries, technology, and real estate, is crucial for maintaining profitability.
• Credit Quality: The quality of the loan portfolio affects earnings. Lower credit quality results in more charge-offs and provisions for credit losses, reducing profitability.

These factors are influenced by broader economic conditions, such as interest rate movements set by the Federal Reserve, overall economic growth, and regulatory changes.

First Horizon Corporation's Financial Performance

Analyzing First Horizon's financial performance involves looking at key metrics:

• Net Interest Margin (NIM): Measures the difference between interest income and interest expense as a percentage of average earning assets. A higher NIM indicates better profitability from lending activities.
• Efficiency Ratio: Calculated by dividing non-interest expenses by total revenue. A lower ratio indicates better operational efficiency.
• Return on Assets (ROA): Measures how efficiently a company is using its assets to generate earnings. A higher ROA is generally better.
• Return on Equity (ROE): Measures how efficiently a company is using shareholders' equity to generate profits. A higher ROE is more desirable.
• Non-Performing Assets (NPA) Ratio: Indicates the percentage of loans that are not generating income. A lower ratio signifies better credit quality.

These metrics provide insights into First Horizon's profitability, efficiency, and risk management. Investors and analysts use these indicators to assess the bank's financial health and future prospects.

To gain more insights into investor behavior and ownership dynamics, consider reading: Exploring First Horizon Corporation (FHN) Investor Profile: Who’s Buying and Why?

First Horizon Corporation (FHN) Market Position & Future Outlook

First Horizon Corporation faces a dynamic market environment, with its future success heavily reliant on adapting to changing economic conditions and successfully integrating acquired businesses. Its ability to manage risks while capitalizing on market opportunities will be crucial for maintaining and improving its competitive position.

Competitive Landscape

Opportunities & Challenges

Industry Position

First Horizon maintains a significant presence in the Southeastern United States, focusing on regional banking and wealth management services.

• The company's performance is closely tied to the economic health of the region it serves.
• Strategic initiatives include enhancing digital capabilities and expanding its customer base through targeted marketing and community engagement.
• First Horizon aims to differentiate itself through personalized customer service and a comprehensive suite of financial solutions.

To gain more insights into the company's financial well-being, consider reading: Breaking Down First Horizon Corporation (FHN) Financial Health: Key Insights for Investors