Honestly, if you’d looked at the regional banking sector a year or two ago, you might’ve wanted to run for the hills. But things look different right now. As of the market close on Friday, January 16, 2026, the FHN stock price sitting at $24.12 tells a story that isn't just about numbers—it’s about a massive comeback.
First Horizon Corporation (NYSE: FHN) is essentially the survivor that everyone stopped betting against. After the TD Bank merger fell through back in the day, people were skeptical. Now? They’ve just come off a monster fourth quarter. They beat earnings expectations with an EPS of $0.52, which is a far cry from what the "gloom and doom" crowd was predicting.
The Reality Behind the $24.12 Price Point
The stock saw a little bit of a dip on Friday, down about 1.3%. Don't let that small red flicker distract you, though. The bigger picture is that First Horizon is hovering near its 52-week high of $24.91.
Why is this happening?
It’s the revenue growth. CFO Hope Dmuchowski recently laid out the 2026 roadmap, and she’s looking at a 3% to 7% revenue increase. In the banking world, where everything feels stagnant lately, those are solid numbers. They aren’t just sitting on their hands; they’re actually making more money from loans while finally seeing the cost of keeping deposits (the interest they pay you and me) start to cool off.
What the Analysts Are Whispering (and Shouting)
If you follow the big firms, the vibe has shifted from "Wait and See" to "Let’s Go."
- RBC Capital is out here with an Outperform rating and a price target of $28.00.
- DA Davidson just bumped their target to $27.00.
- Even the more cautious folks at TD Cowen moved their target up to $27.00, though they’re keeping a Neutral rating for now.
The consensus? FHN is undervalued. When you look at the price-to-earnings (P/E) ratio, which is currently around 12.86, it looks cheap compared to the historical averages of the big "too big to fail" banks.
Why 2026 Feels Different for First Horizon
The bank isn't just a vault anymore; it’s a capital-returning machine. In 2025 alone, they dumped nearly $900 million back into investors' pockets through stock buybacks. They also paid out over $300 million in dividends.
They have a new $1.2 billion repurchase program ready to go.
Basically, they have so much extra cash (their CET1 ratio is at a healthy 10.64%) that they’re buying back their own stock because they think it’s a better deal than anything else on the market. That’s a huge vote of confidence from the board.
The "Secret Sauce" in the Portfolio
Commercial Real Estate (CRE) used to be the "scary" part of any regional bank's balance sheet. People thought every office building in America was going to go bust.
At First Horizon, the CRE portfolio actually saw a slower pace of paydowns and even a slight increase in commitments recently. It’s a sign that the "bottom" might be in. Plus, their Commercial & Industrial (C&I) lending is picking up.
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Is FHN a Buy Right Now?
Look, no one has a crystal ball. If the Federal Reserve decides to hike rates again or if the economy hits a brick wall, all bets are off. But right now, the FHN stock price today reflects a bank that has its house in order.
They are predicting "flattish" expenses for 2026. In an inflationary world, keeping expenses flat is like finding a unicorn. They’re doing it by investing in tech and moving away from old, expensive manual processes.
Actionable Insights for Investors
If you’re looking at First Horizon, here are the moving parts you need to watch over the next few months:
- The $25 Resistance Level: The stock has been bumping its head against that $25 mark. If it breaks through and stays there, $27 or $28 becomes a very real conversation.
- Net Interest Margin (NIM): Management expects this to stay in the mid-340s. If they can squeeze more out of this, the earnings beats will keep coming.
- The Merger Rumors: DA Davidson called FHN a "top takeover target" for banks with over $80 billion in assets. You shouldn't buy a stock just for a buyout, but it’s a nice "lottery ticket" to have in the background.
- Dividend Reliability: With a yield of roughly 2.49% and a payout ratio under 40%, that quarterly $0.15 dividend is arguably one of the safest in the regional sector.
First Horizon has successfully transitioned from a "distressed" post-merger-failure story into a disciplined, high-performing regional player. It’s not the flashiest stock on the NYSE, but in a market that craves stability and capital returns, it’s doing exactly what it needs to do.
Next Steps for Your Portfolio:
- Monitor the $24.91 52-week high; a clean break above this on high volume often signals a new bullish phase.
- Check the next dividend ex-date, likely in mid-March, if you're looking to capture the $0.15 per share payout.
- Review your exposure to regional banks; with the "Great Regional Realignment" happening in 2026, FHN remains a primary candidate for both organic growth and potential acquisition.