First Horizon Corporation Reports $260 Million Net Income for Q2 2026

First Horizon Corporation reported its financial results for the second quarter of 2026, revealing a net income of $260 million, or $0.54 per diluted share, compared to $233 million, or $0.45 per diluted share, in the same quarter of the previous year. The company's net interest income increased by $35 million year-over-year, driven primarily by lower funding costs and loan growth, despite a decline in loan yields. The provision for credit losses decreased to $15 million from $30 million in the prior year, reflecting improved asset quality and lower net charge-offs, which were $33 million for the quarter.

For the first half of 2026, First Horizon's net income available to common shareholders reached $518 million, or $1.07 per diluted share, up from $446 million, or $0.86 per diluted share, in the same period of 2025. The increase in net interest income for the year-to-date period was $72 million, attributed to lower funding costs and loan growth. The allowance for loan and lease losses (ALLL) stood at $709 million, or 1.09% of total loans and leases, down from $738 million, or 1.15%, at the end of 2025. The company reported a decrease in nonperforming loans to $531 million, a reduction of $73 million from the previous year-end.

Operationally, First Horizon's total loans and leases increased to $65.3 billion as of June 30, 2026, up $1.2 billion from December 31, 2025. This growth was primarily driven by a $1.4 billion increase in commercial loans, while consumer loans saw a decrease of $249 million. The company also reported a slight increase in total deposits to $68.1 billion, with interest-bearing deposits rising by $425 million. The Common Equity Tier 1 (CET1) ratio decreased to 10.46% from 10.63% at the end of 2025, influenced by capital deployment into loan growth and share repurchases.

Strategically, First Horizon redeemed all outstanding shares of its Series C Preferred Stock on May 1, 2026, and issued $400 million of Series H Non-Cumulative Perpetual Preferred Stock in March 2026. The company continues to focus on maintaining a well-diversified funding mix, with commercial deposits comprising 60% of total deposits as of June 30, 2026. Looking ahead, First Horizon anticipates that its capital ratios will remain above well-capitalized standards, supported by ongoing loan growth and effective risk management practices.