FHN · First Horizon Corporation

First Horizon Corporation delivered strong first quarter 2026 results, with net income available to common shareholders of $257 million, up 21% year-over-year, and diluted EPS of $0.53, up $0.12 from the first quarter of 2025. The company highlighted its third consecutive quarter of adjusted return on tangible common equity above 15%, a key measure of value creation. Net interest income on a fully taxable equivalent basis was $670 million, a $9 million decrease from the prior quarter, while net interest margin expanded 1 basis point to 3.52%. This margin expansion was driven by disciplined deposit repricing, which offset declines in loan yields following the Federal Reserve's rate cut in December 2025. Noninterest income decreased $18 million to $195 million, primarily due to seasonal declines in service charges and fixed income revenue. Noninterest expense decreased $40 million to $505 million, reflecting lower outside services costs related to completed technology projects and reduced marketing expenses. Asset quality remained stable with net charge-offs of $29 million or 0.18% of total loans, and the allowance for credit losses to loans ratio decreased to 1.28%. Capital deployment included $233 million in share repurchases, contributing to a 10 basis point decline in the Common Equity Tier 1 ratio to 10.5%. Management emphasized disciplined execution across its footprint and lines of business, with safety and soundness, profitability, and growth as top priorities.