First Horizon Corporation Reports $266 Million Net Income in Q1 2026

First Horizon Corporation reported its financial results for the first quarter of 2026, revealing a net income of $266 million, or $0.53 per diluted share, compared to $222 million, or $0.41 per diluted share, in the same period last year. The company's net interest income for the quarter was $667 million, a decrease from $631 million in the first quarter of 2025, primarily due to lower interest-bearing deposit costs, which were partially offset by reduced loan yields. The provision for credit losses was $15 million, significantly lower than the $40 million recorded in the previous year, reflecting improved credit quality and lower charge-offs.

Total loans and leases increased to $64.4 billion as of March 31, 2026, up from $64.2 billion at the end of 2025. This growth was driven by a $419 million increase in commercial loans, particularly in the commercial and industrial (C&I) portfolio, which rose to $36.5 billion. However, the commercial real estate (CRE) portfolio saw a decline of $143 million. Consumer loans decreased by $198 million, primarily due to a reduction in consumer real estate loans. Total deposits decreased to $66.5 billion from $67.5 billion, with a notable drop in interest-bearing deposits.

In terms of strategic developments, First Horizon issued 4,000 shares of Series H Preferred Stock in March 2026, raising $400 million, which qualifies as Tier 1 capital. The company also redeemed all outstanding shares of its Series C Preferred Stock on May 1, 2026. The Common Equity Tier 1 ratio stood at 10.53% as of March 31, 2026, down from 10.63% at the end of 2025, attributed to capital deployment in loan growth and share repurchases.

Operationally, First Horizon employed approximately 7,400 associates across over 450 business locations in 23 states. The company continues to focus on enhancing its market presence, particularly in the southern U.S., where it has a significant customer base. The bank's noninterest income for the quarter was $195 million, an increase from $181 million in the prior year, driven by higher revenues from fixed income and cash management services. The efficiency ratio improved to 58.54%, down from 60.06% in the previous year, indicating better cost management.

Looking ahead, First Horizon remains cautious about potential economic uncertainties, including interest rate fluctuations and market conditions. The company is committed to maintaining a strong capital position while navigating the evolving financial landscape. Management anticipates that its capital ratios will remain above well-capitalized standards throughout 2026, supported by ongoing strategic initiatives and a focus on risk management.