First Horizon reported fourth-quarter net income available to common shareholders of $257 million, representing a 1% increase year-over-year, and earnings per share of $0.52. On an adjusted basis, which excludes $2 million of after-tax notable items, adjusted net income rose 2% to $259 million, or $0.52 per share. For the full year 2025, net income available to common shareholders climbed 29% to $956 million, translating to EPS of $1.87, up from $1.36 in 2024. Adjusted full-year net income increased 15% to $968 million, or $1.89 per share. The results were driven by strong revenue growth, disciplined expense management and stable credit metrics, with nonperforming assets remaining below 0.5% of total loans at year end.

At December 31, 2025, First Horizon held $83.9 billion in assets and maintained a common equity tier 1 ratio of 10.8%, well above regulatory requirements. Tangible book value per share stood at 1.75x, supporting the bank’s $200 million share repurchase authorization, which it plans to execute throughout 2026. The board declared a quarterly dividend of $0.17 per share, marking the fifth consecutive increase and yielding approximately 3.0%. Limited exposure to commercial real estate (under 10% of total loans) and a stable deposit base have reinforced the company’s risk profile and underpinned its capital return strategy.

Management reiterated its 2026 targets of 3%–7% revenue growth and accelerating loan growth, projecting net interest income expansion driven by higher average loan balances and modestly wider funding spreads. Organic loan growth is anticipated to pick up in the back half of the year, supported by new commercial and specialty banking initiatives. Noninterest expenses are expected to rise in the mid-single digits as investments in digital banking and wealth management platforms continue. Reserve coverage remains conservatively positioned at 1.1% of total loans, although analysts have noted that incremental provisioning could be warranted if economic headwinds intensify.