First Horizon : First Quarter 2026 Earnings Presentation (1Q26 Earnings Slides Final)

Published: 2026-04-15 06:52:32 ET FHN

Published on 04/15/2026 at 06:52 am EDT

First Quarter

2026 Earnings

April 15, 2026

1Q26 reported financial summary

$ in millions,

except per share data

1Q26

Reported Results 4Q25 3Q25 2Q25

1Q25

1Q26 Change vs.

4Q25

1Q25

Net interest income

$667

$676

$674

$641

$631

($9)

(1%)

$36

Fee income

195

212

215

189

181

(18)

(8%)

Total revenue

862

888

889

830

812

(26)

(3%)

Expense

505

545

551

491

488

(40)

(7%)

Pre-provision net revenue (PPNR)

357

343

339

325

10%

Provision for credit losses

(5)

(25)

(63%)

Pre-tax income

342

343

344

309

285

(1)

20%

Income tax expense

(2)

(2%)

22%

Net income

266

244

222

20%

Non-controlling interest

(12%)

(1)

(14%)

Preferred dividends

Net income available to common shareholders (NIAC)

$257

$254

$233

$213

$44

21%

Diluted EPS

$0.53

$0.52

$0.50

$0.45

$0.41

$0.01

$0.12

29%

Diluted shares

487

496

510

514

523

(10)

(2%)

(37)

(7%)

ROCE

12.3%

12.0%

11.7%

11.1%

10.3%

27bps

196bps

ROTCE

15.1%

14.8%

14.5%

13.8%

12.8%

31bps

231bps

ROA

1.3%

1.2%

1.1%

3bps

19bps

Net interest margin

3.52%

3.51%

3.55%

3.40%

3.42%

1bps

10bps

Fee income / total revenue

22.6%

23.9%

24.2%

22.7%

22.3%

(126bps)

34bps

Efficiency ratio

58.5%

61.3%

61.9%

59.2%

60.1%

(279bps)

(152bps)

FTEs (full-time equivalent associates)

7,369

7,373

7,341

7,255

7,190

(4)

179

CET1 ratio

10.5%

10.6%

11.0%

10.9%

(10bps)

(40bps)

Effective tax rate

22.2%

22.6%

22.7%

20.8%

22.0%

(43bps)

25bps

Tangible book value per share (TBVPS)

$14.34

$14.20

$13.94

$13.57

$13.17

$0.14

$1.17

Period end loans

$64.4B

$64.2B

$63.1B

$63.3B

$62.2B

$0.2

$2.2

Period end deposits

$66.5B

$67.5B

$65.5B

$65.6B

$64.2B

($1.0)

(1%)

$2.3

Period end loan to deposit ratio

97%

95%

96%

97%

175bps

(7bps)

PPNR, TBVPS, and ROTCE are non-GAAP and are reconciled to GAAP measures in the Appendix.

1Q26 adjusted financial summary

$ in millions,

except per share data

1Q26

4Q25

Adjusted Results

3Q25

2Q25

1Q25

1Q26 Change vs.

4Q25

1Q25

Net interest income (FTE)

$670

$679

$678

$645

$634

($9)

(1%)

$36

Fee income

$195

$212

$215

$189

$181

($18)

(8%)

$13

Total revenue (FTE)

$865

$892

$893

$833

$816

($26)

(3%)

$49

Expense

$505

$541

$542

$495

$482

($36)

(7%)

$23

Pre-provision net revenue

$360

$350

$351

$338

$334

$10

$26

Provision for credit losses

$15

($5)

$30

$40

$15

($25)

(63%)

Net charge-offs

$29

$30

$26

$34

$29

($2)

(6%)

(2%)

Reserve build / (release)

($14)

($30)

($31)

($4)

$11

$17

55%

($25)

NIAC

$257

$259

$263

$229

$217

($2)

(1%)

$40

18%

EPS

$0.53

$0.52

$0.51

$0.45

$0.42

$0.01

$0.11

26%

Diluted shares

487

496

510

514

523

(10)

(2%)

(37)

(7%)

ROTCE

15.1%

15.0%

13.6%

13.1%

16bps

204bps

ROA

1.3%

1.2%

1.1%

2bps

16bps

Net interest margin (NIM)

3.52%

3.51%

3.55%

3.40%

3.42%

1bp

10bps

Fee income / total revenue

22.6%

23.8%

24.1%

22.6%

22.2%

(125bps)

35bps

Efficiency ratio

58.3%

60.7%

60.8%

59.5%

59.1%

(239bps)

(75bps)

CET1 Ratio

10.5%

10.6%

11.0%

10.9%

(10bps)

(40bps)

TBVPS

$14.34

$14.20

$13.94

$13.57

$13.17

$0.14

$1.17

Effective tax rate

22.2%

22.7%

20.8%

22.0%

(47bps)

23bps

PPNR, ROTCE, TBVPS, ACL to loans ratio, fully taxable equivalents, and adjusted financial measures, including measures excluding deferred compensation, are non-GAAP and are reconciled to GAAP measures in the Appendix. Net interest income and margin are adjusted to a fully taxable equivalent ("FTE") basis assuming a statutory federal income tax of 21 percent and, where applicable, state income taxes.

Table of Contents

1Q26 highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

NII and NIM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Adjusted fee income 10

Adjusted expense 11

Asset quality 12

Capital 13

2026 outlook 14

Strategic focus 15

Appendix 16

1Q26 results set a solid foundation for the year

1Q26

adjusted ROTCE

Beginning the year with clear momentum

Adjusted

15.1%

C&I

loan growth

+2%

imp

PPNR

rovem

ent

+8%

vs 1Q25

1Q26 financial highlights

Buybacks

$233 million

Earnings:

1Q26

Change vs. 4Q25

Adjusted EPS

$0.53

+$0.01

Adjusted PPNR

$360 million

+3%

NIM

3.52%

+1bp

CET1 ratio

10.53%

(10bps)

TBVPS

$14.34

+1%

Capital:

NCO%

18bps

(1bp)

ACL%

1.28%

(3bps)

NPL%

0.94%

PPNR, ROTCE, TBVPS, ACL to loans ratio, fully taxable equivalents, and adjusted financial measures are non-GAAP and are reconciled to GAAP measures in the Appendix.

Net interest income and margin are adjusted to a fully taxable equivalent ("FTE") basis assuming a statutory federal income tax of 21 percent and, where applicable, state income taxes.

‌Continued deposit pricing discipline drives strong NIM

$ in millions

NII

Margin

4Q25

$679

3.51%

Day count

($9)

Net interest income ($) and NIM (%)

$634

$645

3.42%

3.40%

3.52%

3.51%

3.55%

$678 $679 $670

Loan portfolio ($23) (0.11%)

Deposit portfolio $28 0.16%

Other ($4) (0.04%)

1Q26 $670 3.52%

1Q25 2Q25 3Q25 4Q25 1Q26

Interest income and net interest margin both benefited from lower deposit pricing as average interest-bearing costs declined by 25bps

Total loan yields declined by 15bps primarily due to the Fed's rate cut in December 2025

As of period end 1Q26, 57%1 of loans are indexed to short-term rates

Fixed rate cash flows over the next year include ~$5 billion of fixed rate loans with a roll-off yield of ~4.8% and $1 billion of securities with a roll-off yield of ~2.9%

Net interest income and margin are adjusted to a fully taxable equivalent ("FTE") basis assuming a statutory federal income tax of 21 percent and, where applicable, state income taxes.

1Does not include the impact of interest rate hedges. For more detail on the hedges, see slide 17 in the Appendix.

Deposit portfolio reflects balance sheet seasonality

$64.2B

Period end deposits

$15.9

$15.8

$16.0

$15.9

$15.8

$14.2

$13.6

$14.7

$16.2

$31.1

$31.5

$31.7

$30.6

$29.4

$5.3

$6.0

$65.6B $65.5B $67.5B $66.5B

Decrease of $1.0 billion versus 4Q25, primarily driven by

$2.8 $4.4 $4.2

1Q25 2Q25 3Q25 4Q25 1Q26

fluctuations in brokered deposits

Retained ~97% of ~$29 billion of total balances associated with repriced deposits in the quarter, while reducing costs by 8bps on these balances

Brokered deposits averaged $253 million higher in 1Q26 compared to 4Q25

Average DDA balances decreased $444 million from the prior quarter reflecting seasonality in client balances

Maintained strong repricing performance with ~69% cumulative beta since cuts began in 3Q24

Quarter end interest-bearing deposit spot rate was ~2.27%

Loan portfolio growth driven by strong C&I performance

Period end loans

$13.4B

$13.9B

$4.6B

$30.0B

$31.8B

$31.2B

$13.7B

$14.1B

$13.6B

$13.9B

$3.9B

$30.3B

$14.1B

$14.4B

$14.1B

$3.4B

$30.5B

$4.1B

$4.7B

$62.2B $63.3B $63.1B $64.2B $64.4B

1Q25 2Q25 3Q25 4Q25 1Q26

C&I excluding loans to mortgage companies (LMC) grew $624 million, or 2%

LMC decreased $62 million

CRE balances declined $143 million

Average loan balances decreased by $240 million from 4Q25 which reflects a $275 million seasonal decrease in LMC early in the quarter

Period end total loan portfolio line utilization of 44%1

1Utilization rates exclude loans to mortgage companies.

2Credit card & other was $0.6B in 1Q25, 2Q25, 3Q25, 4Q25, and 1Q26.

3Does not include the impact of interest rate hedges. For more detail on the hedges, see slide 17 in the Appendix.

‌Strong year-over-year fee income improvement

$ in millions Adjusted Results 1Q26 Ch 1Q26 4Q25 3Q25 2Q25 1Q25 4Q25

ange vs.

1Q25

Fixed income

$53

$57

$42

$49

($4)

(7%)

Mortgage banking

$10

$15

$10

($1)

(10%)

13%

Service charges and fees

$58

$64

$57

$55

$52

($6)

(9%)

11%

Brokerage, trust, and insurance

$43

$41

$39

$38

12%

Card and digital banking fees

$18

$19

$18

(1%)

Deferred compensation income

$(3)

($5)

(1%)

Securities gains/(losses)

$(1)

($1)

Other noninterest income

$16

$18

$19

$16

$18

($2)

(11%)

($2)

(11%)

Total fee income

$195

$212

$215

$189

$181

($18)

(8%)

$13

Fee income ex deferred comp

$197

$209

$207

$181

$184

($12)

(6%)

$13

Fixed income ADR1

$742k

$765k

$771k

$550k

$586k

($23k)

(3%)

$157k

27%

Adjusted financial measures, including measures excluding deferred compensation, are non-GAAP and are reconciled to GAAP measures in the Appendix.

1Fixed Income ADR is based upon Fixed Income trading revenues and excludes other product revenues (e.g. investment advisory, derivatives, loan trading and other service related revenues).

Disciplined expense management to start the year

$ in millions

1Q26

Adjusted Results

4Q25 3Q25 2Q25

1Q25

1Q26 Change vs.

4Q25

1Q25

Salaries and benefits

$211

$213 $209 $206

$201

($2)

(1%)

$10

Incentives and commissions

$79

$87 $79 $73

$81

($8)

(9%)

($1)

(2%)

Deferred compensation expense

($2)

$3 $8 $7

$(3)

($5)

47%

Total personnel expense

$289

$303

$296

$286

$279

($14)

(5%)

$10

Occupancy and equipment1

$84

$83

$80

$79

$78

Outside services

$69

$95

$79

$71

$63

($26)

(27%)

Amortization of intangible assets

$10

($1)

(8%)

($2)

(16%)

Other noninterest expense

$55

$52

$79

$50

$52

Adjusted total noninterest expense

$505

$541

$542

$495

$482

($36)

(7%)

$23

Expense ex deferred comp

$507

$538

$534

$489

$485

($32)

(6%)

$22

Full-time equivalent associates

7,369

7,373

7,341

7,255

7,190

(4)

179

Salaries and benefits decreased $2 million driven by lower day count

Incentives and commissions decreased $8 million following incentive accruals in the fourth quarter

Adjusted financial measures, including measures excluding deferred compensation, are non-GAAP and are reconciled to GAAP measures in the Appendix.

1Occupancy and equipment expense includes computer software expense.

Credit performance remains consistent

Net charge-offs (NCOs)

$29

$26

$30

$29

0.59%

0.19%

0.18%

0.60%

0.17%

0.56%

0.19%

0.22%

0.54%

$34

1Q25 2Q25 3Q25 4Q25 1Q26

NCO ratio of 0.18%, down slightly from 4Q25

Results include $17 million of recoveries

Excluding LMC, non-depository financial institution (NDFI) lending is ~6% of loans

Allowance for credit losses (ACL)

$905

$901

$870

$839

$826

1.28%

1.31%

1.38%

1.42%

1.45%

1Q25 2Q25 3Q25 4Q25 1Q26

Non-performing loans (NPLs)

$609

$593

$605

$604

$606

0.98%

0.94%

0.96%

0.94%

1Q25 2Q25 3Q25 4Q25 1Q26

ACL to loans ratio is non-GAAP and is reconciled to the GAAP measure in the Appendix.

1Net charge-off ratio is annualized and as % of average loans.

2Excludes trust and investment banks. Historical numbers have changed due to the reweighting of the BKX index.

Capital levels continue progress towards near term targets

14.1%

14.0%

13.8%

13.3%

13.7%

11.9%

12.0%

11.9%

11.5%

11.9%

10.9%

11.0%

10.6%

10.5%

Capital ratios

1Q25 2Q25 3Q25 4Q25 1Q26

CET1 changes were supported by share buybacks of $233 million at

$24.54 per share3

$765 million of authorization remaining under repurchase program approved in 4Q25

Tier 1 and total capital ratios up 44 basis points and 39 basis points, respectively, from 4Q25 driven by the $400 million Series H Preferred Stock issuance in March 2026

$0.53 and is up $1.17 year-over-year

Common equity tier 1 (CET1) Tangible book value per share (TBVPS)

10.63%

(0.11)%

0.04% 10.53%

(0.32)% (0.06)%

0.35%

4Q25

Actual

NIAC Common Dividend

Share Buybacks

Change in Loan Balances & Unfunded Commitments

Other¹ 1Q26 Estimate

$14.20

$0.53

$0.03

$14.34

$(0.17) $(0.05)

$(0.20)

4Q25

Actual

NIAC

Impact

Common Dividends

Marks on AFS &

Hedges

Share Buybacks

Other² 1Q26 Actual

TBVPS and adjusted financial measures are non-GAAP and are reconciled to GAAP measures in the Appendix.

1Other category includes other capital changes such as DTA, intangibles, and options exercised and other risk weighted asset ("RWA") changes.

2Other includes change in intangibles and equity compensation.

3Weighted average share price of $24.54 includes related commission expenses.

Reiterating 2026 outlook

Core objectives

Key metrics

Pre-provision net revenue growth

2025

Baseline

2026

Expectations Comments

Adjusted Revenue

ex. deferred comp.

Revenue range reflects

$3.42 billion 3 - 7% outcomes from various rate

environments

Adjusted Expenses

ex. deferred comp.

$2.05 billion

~0%

Flat guidance excludes bonuses/ commissions from incremental counter-cyclical revenue

Mid-single digit balance sheet growth

performance

Net Charge-Offs 0.19% 0.15% - 0.25% Reflects continued strong credit

Tax Rate

22.1%

21% - 23%

Discrete items will slightly impact the quarterly rate

Positive operating leverage

CET1 Ratio 10.63% ~10.5%

Near term target now 10.5% level will vary with loan growth

Expectation ranges built on base case assumptions in line with forward interest rate curve as of October 31, 2025 (25bp cuts in April 2026 and July 2026) with various scenarios used to develop the range.

PPNR and adjusted financial measures, including measures excluding deferred compensation and fully taxable equivalents, are non-GAAP and are reconciled to GAAP measures in the Appendix. This page and the following one also include forward-looking guidance with respect to certain non-GAAP financial measures. FHN is not able to reconcile these forward-looking non-GAAP measures to their most directly comparable GAAP measures without unreasonable efforts because sufficient information is not available to determine and quantify, or to estimate the probable significance of, all of the variables and adjustments that would be needed for such reconciliations.

Net interest income and margin are adjusted to a fully taxable equivalent ("FTE") basis assuming a statutory federal income tax of 21 percent and, where applicable, state income taxes.

Variability in deferred compensation may impact growth rates in noninterest income and noninterest expense but should have an offsetting and immaterial impact on pretax income.

Sustaining 15%+ adjusted ROTCE through focused execution

FY24

12.5%

FY25

14.2%

Last Twelve

Months

14.7%

Key ingredients to sustained return levels

Areas of focus

Client relationship growth

Maximizing revenue opportunities

Product and business line penetration

Product enhancements

over the intermediate term

Adjusted ROTCE trends

$100mm+ revenue-driven, PPNR opportunity

Examples of progress since mid-2025

CRE pricing enhancements with better business line alignment (~$2mm+ in yield-driven profitability and fee improvements)

Deeper partnership between regional and specialty teams (~$5mm annualized value captured)

Treasury management service momentum going into 2026 (~$5mm annual impact)

Initial phases of wealth management penetration growth (Growing into several million throughout the year)

Capital

Strategic capital management to opportunistically deploy excess capital and lower CET1 to intermediate-term target of 10-10.5%

Credit

Operate with through-the-cycle discipline: low losses, normalized provision that trends with loan growth, and appropriate reserve coverage

Profitability

Deliver revenue-driven PPNR growth with a balanced model; drive positive operating leverage with expense discipline while investing in growth

PPNR, ROTCE, TBVPS, ACL to loans ratio, fully taxable equivalents, and adjusted financial measures are non-GAAP and are reconciled to GAAP measures in the Appendix.

Net interest income and margin are adjusted to a fully taxable equivalent ("FTE") basis assuming a statutory federal income tax of 21 percent and, where applicable, state income taxes.

‌Appendix

Actively managing liquidity and interest rate sensitivity

Insured

Collateralized

58%

Neither 34%

Swaps

40%

Floors

60%

Floors with strike prices between 1.25%

change in the next 12 months' NII for an instantaneous, parallel shock on a static balance sheet

Commercial deposits of $39 billion or 59% and consumer deposits of $28 billion or 41%

Attractive lower-cost deposit base with 24% comprised of non-interest bearing products

Contingency funding plan equates to ~132% of uninsured or uncollateralized deposits

and 2.5% and maturities ranging from late 2027 to early 2029

Receive fixed swaps with fixed rates between 2.6% and 3.0% and maturities

in 2027 and 2029

ARMs

12%

Fixed

31%

Variable

57%

Modestly asset-sensitive profile driven by 57% variable rate loan mix

Within the ARM portfolio, only 12% of loans will be in their variable period within the next year

1Estimate as of 3/31/2026.

Track record of strong results supported by stable, diversified business mix

Our diversified business model with a highly attractive geographic footprint provides opportunity to deliver strong performance through a variety of economic cycles

The counter-cyclical businesses (fixed income, loans to mortgage companies, and mortgage) provide a counterbalance to the asset sensitive balance sheet during periods of declining interest rates

Adjusted PPNR

$1,222

$1,374

$108 / 8%

$1,370

$26 / 2%

$1,299

$81 / 6%

$1,372

$118 / 9%

$1,460

$115 / 8%

$1,084

$347 / 28%

$754

$158 / 21%

$406 / 37%

1,345 / 92%

$1,266 / 92%

$1,344 / 98%

$875 / 72%

$1,218 / 94%

1,254 / 91%

$678 / 63%

$596 / 79%

in millions

$1,400

$1,200

$1,000

$800

$600

$400

$200

Average Fed Funds Effective

2019¹ (pre-IBKC)

2020¹ (IBKC in 2H20)

2021 2022 2023 2024 2025 2026 YTD

Annualized

Adjusted pre-provision net revenue (PPNR) is a non-GAAP measure and is reconciled to pre-tax income (GAAP) in the Appendix. Numbers may not total due to rounding.

12019 and 1H20 are standalone FHN, as the IBKC merger-of-equals did not occur until July 1, 2020.

2Counter-cyclical PPNR includes direct and allocated fees and expenses, as well as net interest income net of funds transfer pricing.

FHN Financial's strong full-cycle returns are counter-cyclical to bank franchise

FHN Financial provides fixed income sales & trading, investment advisory, interest rate derivatives and other services to financial institutions, municipalities and other institutional investors across the United States and internationally

In addition to trading revenues, FHN Financial generates ~$40 million annually of fee income from other products, including investment advisory, derivatives, loan trading and other service related revenue

~4,000 active institutional clients

Clients include approximately one third of all US banks and 50% of banks with portfolios over $100 million in size

$2.0

d Funds

FOMC easing during GFC

$1.6

FOMC ZIRP Policy

$1.2

Average ADR

in millions

FOMC easing

during pandemic

$1.3

$1.5

Normalizing

FOMC Policy

$0.7

Early stage of$1.0 FOMC easing

$0.7

$0.5

FOMC tightening to fight inflation

$0.5

$0.0

6.00%

4.00%

2.00%

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Lower Revenue

Market Factor

Higher Revenue

2025 Environment

Current Environment

Rate Direction

Down

Decline in short-term rates

Extreme (low/high)

Market Volatility

Moderate

Improved volatility environment in 2H25

Moderately high

Flat/Inverted

Yield Curve Shape

Steep

Improved, flat vs historical

Flat vs historical

Tight

Corporate & Mortgage Spreads

Wide

Tight

Lower

Depository Liquidity

Greater

Neutral impact

Greater

A balanced mix of NDFI, designed to manage risk and

capture opportunity across cycles

4Q25

period-end loans

87%

Non-depository financial institution (NDFI) Keys

LMC exposure represents very low risk (~1bp average

annualized NCOs over the last 10 years)

Remaining exposure is primarily in specialty ABL vertical with

diversified industries, deep expertise, and on staff inspectors

NDFI non-accruals are only 0.37% of total NDFI

$8.6B

$3.9B

~55%

of 12/31/25 call report NDFI

Short-tenor, collateralized, high monitoring cadence

Non-LMC NDFI spread across multiple industries, managed via experienced teams and includes risk monitoring like onsite collateral inspections

4Q25 call report NDFI exposure

Loans to mortgage companies (LMC)

Non-LMC NDFI

All loan balance references are to period-end loans.

All NDFI numbers are sourced from the call report as of 12/31/2025.

Disclaimer

First Horizon Corporation published this content on April 15, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 15, 2026 at 10:51 UTC.