FHN vs. BOKF: Which Bank Stock Has Better Upside Potential?

By Zacks Equity Research | December 04, 2025, 11:51 AM

As banks compete to differentiate themselves in an evolving banking landscape, First Horizon Corporation FHN and BOK Financial Corporation BOKF emerge as two institutions worth examining side by side. While both banks operate across multiple regions and offer comprehensive financial services, their approaches to growth, risk management, and customer engagement reveal distinct identities. Let us delve deeper and examine the key drivers for FHN and BOKF to determine which stock has stronger upside potential.

The Case for FHN

First Horizon has continued to demonstrate solid performance, marked by consistent growth in both loans and deposits over the past several years. This upward trajectory reflects the strength of its business model and the stability of its core markets. Management anticipates this momentum to persist, supported by sustained growth in the commercial and industrial (C&I) portfolio, steady mortgage-warehouse activity, and healthy consumer lending demand. Recent quarterly results reinforce this view, with loans expanding across key categories and deposits showing renewed strength as promotional offerings and improved customer engagement draw in and retain clients. Deposit balances, in particular, are expected to improve further as noninterest-bearing deposits rise and customer retention remains strong.

Further, the company has been witnessing improvement in net interest income (NII) over the past few years. The Federal Reserve has reduced rates twice this year, and a further rate cut is expected this month, given weakening job data. With relatively lower rates, FHN’s NII will improve further as loan demand increases and funding/deposit costs stabilize

From a liquidity standpoint, FHN remains well-positioned. As of Sept. 30, 2025, the company held $2.1 billion in cash and interest-bearing deposits. Further, its short-term borrowings were $4.3 billion, while term borrowings stood at $1.3 billion.

The Case for BOKF

BOK Financial presents a fundamentally balanced outlook supported by a diversified operating model, consistent loan and deposit expansion and favorable margin trends. The company has been focused on diversifying its loan portfolio to energy, healthcare, and service lending. Management is targeting a year-over-year loan growth of 5–7% for 2025.

BOKF continues to record steady improvement in NII, supported by easing deposit costs and healthier asset yields. NII has maintained an upward trend through 2025, and management expects it to reach $1.33–$1.35 billion for the year, up from $1.2 billion in 2024.

Strategic market expansion is also enhancing BOKF’s long-term growth profile. In June 2024, Bank of Texas expanded into the San Antonio market, strengthening its statewide reach. In July 2023, BOK Financial Securities opened an office in Memphis, increasing the company’s presence in the Southeastern United States. These targeted expansions deepen the bank’s footprint and support growth across its fee-based and client-facing businesses.

However, BOKF's debt level seems unmanageable. As of Sept. 30, 2025, the company had total debt (comprising funds purchased and repurchase agreements and other borrowings) of $4.2 billion, whereas cash and due from banks, as well as interest-bearing cash and cash equivalents, aggregated to $1.4 billion.

How Do Estimates Compare for FHN & BOKF?

The Zacks Consensus Estimate for FHN’s 2025 and 2026 revenue implies year-over-year growth of 5.6% and 3.2%, respectively. Further, the consensus estimate for earnings indicates an 18.7% and 6.1% rise for 2025 and 2026, respectively. Earnings estimates for both years have remained unchanged over the past month.