First Horizon delivered full year net income available to common shareholders of $956 million, representing a 29% increase over the prior year and translating into earnings per share of $1.87, up from $1.36 a year earlier. Adjusted net income, which excludes $12 million of after-tax notable items, rose 15% to $968 million, or $1.89 per share. The year’s results were bolstered by a 7% increase in net interest income driven by loan growth in commercial and residential portfolios, and a 12% gain in non-interest income, reflecting strong mortgage banking revenues and higher wealth management fees. Credit performance remained solid, with the provision for credit losses declining by $45 million year-over-year and net charge-offs holding at just 0.25% of average loans, underscoring disciplined underwriting across the portfolio.

In the fourth quarter, net income available to common shareholders increased 1% to $257 million, or $0.52 per share, compared with third quarter results. On an adjusted basis, excluding $2 million of after-tax notable items, quarterly earnings rose 2% to $259 million, maintaining the $0.52 per share level. Net interest income grew by 4% sequentially, supported by a 3% rise in average loan balances, while non-interest income held steady despite seasonally lower mortgage originations. The provision for credit losses was reduced by $8 million from the prior quarter, reflecting stable asset quality metrics and lower net charge-offs of $18 million. Return on tangible common equity for the quarter improved to 11.2%, reinforcing the franchise’s earnings power in a challenging rate environment.

First Horizon’s leadership emphasizes continued focus on deepening client relationships and diversifying revenue streams in 2026. The company ended the year with a common equity tier 1 capital ratio of 10.8% and tangible book value per share of $12.45, providing ample capacity for targeted investments in digital capabilities and organic loan growth. Management has reiterated its goal to generate 10–12% annual earnings growth over the medium term, supported by disciplined expense management and selective M&A opportunities. With a fully phased-in leverage ratio of 7.5% and liquidity reserves of over $18 billion, First Horizon is positioned to navigate rising funding costs while funding strategic initiatives across its commercial, consumer, wealth and mortgage banking businesses.