First Horizon (FHN) investor relations material

Executive summary

• Net income available to common shareholders reached $260 million ($0.54 per share) for Q2 2026, up 12% year-over-year and 1% sequentially, driven by higher net interest and noninterest income and disciplined expense management.

• Adjusted EPS rose $0.09 or 20% year-over-year, with adjusted PPNR up 8% and period-end loan balances increasing by $2 billion compared to Q2 2025.

• Return on common equity was 12.3% and return on tangible common equity was 15.2% for the quarter.

• First half 2026 net income available to common shareholders grew 16% compared to the first half of 2025, with 3% year-over-year loan growth.

Financial highlights

• Net interest income (FTE) for Q2 2026 was $679 million, up $9 million sequentially and $35 million year-over-year; net interest margin was 3.49%, down 3 bps sequentially but up 9 bps year-over-year.

• Noninterest income rose $16 million sequentially to $211 million, led by brokerage, trust, insurance, and deferred compensation, partially offset by lower fixed income.

• Noninterest expense increased $26 million sequentially to $531 million, mainly due to higher personnel, technology, and marketing costs.

• Adjusted PPNR was $364 million, up 1% from Q1 and 8% from Q2 2025.

• Provision for credit losses was $15 million, down from $30 million in Q2 2025; net charge-offs were $33 million (0.20% of loans and leases).

Outlook and guidance

• Full-year 2026 guidance reiterates 3%-7% adjusted revenue growth, mid-single digit balance sheet growth, and flat expenses, with NIM expected in the mid to high 340s.

• Net charge-offs projected in the 0.15–0.25% range, with CET1 ratio targeted at ~10.5%.

• Capital ratios are expected to remain above well-capitalized standards plus the required buffer.

• Deposit costs are expected to trend up slightly in a competitive environment, with seasonal effects in Q2 and Q3.