...First Horizon Corporation's (FHN) 2025 outlook for flat adjusted revenue, up to 4%, remains unchanged. Fitch Ratings' expectation for interest rates is for the Federal Reserve to wait until 4Q25 before cutting rates. A higher for longer rate environment will be supportive to FHN's net interest margin (NIM) in 2025. A headwind to NIM expansion is a more difficult macroeconomic environment for loan growth due to policy uncertainty and retaliatory tariffs on U.S. exporters. If the Federal Reserve cuts rates in 2025, some of FHN's fee businesses, which include FHN Financial, mortgage lending, and mortgage warehouse lending, will benefit, as they are generally countercyclical to the bank's asset-sensitive balance sheet. Fitch expects FHN will be able to meet their revenue guidance in 2025 supported by NIM expansion or fee revenue growth. NIM increased by 5 bps year-over-year as of 1Q25 due to a decline in average total deposit costs, which more than offset a reduction in average loan yield....
