First Horizon reported earnings per share of $0.52 for the fourth quarter, surpassing the consensus estimate of $0.46. Net income available to common shareholders rose to $257 million, marking a 1% increase from the prior quarter and a 63% jump year-over-year. Revenue held steady at $888 million, flat sequentially but up 22% compared with the year-ago period. Net interest income totaled $676 million, slightly above the third quarter, while the net interest margin narrowed by 4 basis points to 3.51% following two Federal Reserve rate cuts that weighed on loan yields.

Period-end loans increased 2% sequentially to $64.2 billion, driven primarily by a 20% surge in lending to mortgage companies. Credit quality metrics improved modestly: the allowance for credit losses to loans ratio tightened to 1.31% from 1.38% in the prior quarter. Net charge-offs amounted to $30 million, or 0.19% of average loans, compared with 0.17% in the third quarter, underscoring stable credit performance despite higher interest-rate volatility.

For the full year 2025, First Horizon reported net income available to common shareholders of $956 million, up 29% from 2024. Earnings per share climbed to $1.87 from $1.36 a year earlier, reflecting strong revenue growth, disciplined expense management and limited credit losses. The bank’s improved profitability and resilient balance sheet position it to pursue targeted loan growth and maintain shareholder distributions in 2026.