First Horizon (FHN) Q1 2026 earnings summary

Executive summary

• Net income available to common shareholders rose 21% year-over-year to $257 million ($0.53 per share), with EPS up $0.12 compared to Q1 2025 and adjusted ROTCE at 15.1%, marking the third consecutive quarter above 15%.

• Adjusted pre-provision net revenue increased 8% year-over-year to $360 million, with disciplined expense management and a diversified business model supporting profitable growth.

• CET1 ratio decreased to 10.53% due to share repurchases, but capital ratios remain strong after $400 million Series H Preferred Stock issuance.

• Tangible book value per share rose 9% year-over-year to $14.34.

• Management emphasized continued focus on safety, soundness, profitability, and growth to drive stakeholder value.

Financial highlights

• Net interest income grew 6% year-over-year to $670 million, outpacing 3% loan portfolio growth, with net interest margin improving to 3.52%.

• Adjusted fee income was $195 million, up $13 million year-over-year but down $18 million sequentially.

• Adjusted expenses were $505 million, up $23 million year-over-year but down $36 million sequentially.

• Loans and leases grew $221 million sequentially to $64.4 billion; deposits declined $994 million to $66.5 billion.

• Efficiency ratio improved to 58.54% from 60.06% year-over-year.

Outlook and guidance

• Full-year outlook maintained, with CET1 ratio target of 10.5% and revenue guidance of 3%–7% growth, with upside potential if mortgage refi activity increases.

• Flat year-over-year expense outlook, with variability expected quarter to quarter.

• Mid-single-digit loan growth expected, with strong C&I and improving CRE contributions.

• Capital ratios expected to remain above well-capitalized standards plus required buffers.

• Management continues to monitor economic and regulatory developments, including interest rate trends and deposit competition.