First Horizon reported fourth-quarter net income available to common shareholders of $257 million, translating to diluted earnings per share of $0.52, a 1% year-over-year increase. On an adjusted basis—excluding $2 million of notable items—net income rose 2% to $259 million, or $0.52 per share. These results surpassed consensus estimates by approximately 4%, driven by both improved net interest margin and continued cost discipline.

The bank finished the quarter with total loans of $55.3 billion, reflecting a 2% sequential increase and positioning loan balances to accelerate in 2026. Commercial real estate exposure remains below 15% of total loans, mitigating concentration risk. Deposit balances held steady at $62.8 billion, supported by a well-diversified customer base in the Southeast and stable retail funding trends.

First Horizon entered 2026 with a Common Equity Tier 1 ratio above regulatory expectations, providing capacity for up to $200 million of share buybacks over the next twelve months. Book value per share increased 6% year-over-year, and tangible common equity to tangible assets held at 8.9%, underscoring a resilient capital cushion against potential credit headwinds.

Management reiterated full-year guidance targeting 3%–7% revenue growth and faster loan origination, aiming for low-single-digit credit costs. Operating expense growth is forecast to remain below revenue gains, driving modest leverage on the efficiency ratio. Investors will watch reserve coverage levels—currently at 1.25% of total loans—for signs of prudent risk management as asset growth accelerates.