First Horizon (FHN) Earnings Date & Reports
First Horizon Corp is the parent company of First Tennessee Bank, a prominent regional bank with about 200 branches around Tennessee... Show more
FHN is expected to report earnings to 52 cents per share on July 22
First Horizon Corporation (FHN) Q1 2026 Earnings Recap: EPS Tops Forecasts as Profits Climb 21%
Key Takeaways
- First Horizon reported diluted earnings per share (EPS) of $0.53 for Q1 2026, beating consensus estimates of $0.49 by $0.04.
- Net income available to common shareholders reached $257 million, a 21% increase year-over-year from Q1 2025.
- Total revenue came in at $862 million, slightly below the $869 million consensus expectation.
- Return on tangible common equity (ROTCE) stood at 15.1%, marking the third straight quarter above 15%.
- Net interest margin (NIM) expanded to 3.52%, supported by 6% year-over-year growth in net interest income (NII).
- Provision for credit losses was $15 million, with net charge-offs at 18 basis points.
Earnings Context and Why It Matters
As a leading regional bank focused on the Sun Belt region, First Horizon Corporation's Q1 2026 earnings provide critical insights into its resilience amid fluctuating interest rates and economic uncertainty. Investors closely watch the bank's deposit growth, loan quality, and profitability metrics, especially as higher funding costs pressure margins across the sector. This report follows a year of strategic deposit pricing and commercial loan expansion, highlighting the company's ability to deliver shareholder value through disciplined expense management and fee income growth. Strong results reinforce First Horizon's position in a competitive banking landscape, influencing stock performance and dividend sustainability.
First Horizon Corporation released its first quarter 2026 results on April 15, 2026, showcasing robust profitability despite a minor revenue shortfall. Diluted EPS of $0.53 exceeded analyst consensus of approximately $0.49 to $0.50, driven by higher NII and controlled expenses.+Tops+Q1+EPS+by+3c/26314604.html) Net income available to common shareholders rose 21% to $257 million from $212 million in Q1 2025.
Total revenue totaled $862 million, missing the $869 million estimate by about 0.8%, primarily due to softer noninterest income. NII grew 6% year-over-year, benefiting from a 3.52% NIM expansion, while average loans increased modestly to $64.2 billion. Deposits remained stable at $67.5 billion. Credit quality was solid, with provision expense at $15 million and net charge-offs (NCOs, losses on loans after recoveries) at 18 basis points. ROTCE of 15.1% underscored efficient capital use.
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Market Reaction and Investor Sentiment
Following the Q1 2026 earnings release, First Horizon shares showed a mixed initial reaction, with pre-market trading fluctuating between a 2% gain and a slight decline. Investors appeared encouraged by the EPS beat and ROTCE strength but tempered enthusiasm due to the revenue miss. Sentiment remains positive on the bank's profitability momentum and Sun Belt exposure, though broader banking sector pressures on deposit costs weigh on near-term views.
Forward Outlook and Key Factors to Monitor
First Horizon outlined 2026 revenue growth guidance of 3% to 7%, reflecting optimism in commercial and industrial (C&I) loan pipelines and deposit repricing strategies. Management highlighted sustained NIM expansion potential as funding costs stabilize.
Investors should track deposit betas (the sensitivity of deposit rates to market rates) and C&I loan growth, which drove Q1 momentum. Credit metrics remain a focus, with low NCOs and provisioning supporting asset quality amid economic softening risks.
Upcoming catalysts include quarterly updates on expense discipline—targeted flat for 2026—and capital returns via buybacks. Broader factors like Federal Reserve rate decisions and regional economic trends in the Sun Belt will influence margins and loan demand. Balanced growth in fee income from wealth management and payments could further bolster results.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
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a regional bank
Industry RegionalBanks