Summary of First Horizon Corporation Q1 2026 Earnings Call

1Key Financial Results and Metrics

Earnings Per Share (EPS): $0.53, up $0.11 year-over-year.

Return on Average Assets (ROAA): 1.3%, an increase of 19 basis points from Q1 2025.

Adjusted Return on Tangible Common Equity (ROTCE): 15.1%, up over 200 basis points year-over-year.

Net Interest Income (NII): Grew 6% year-over-year, outpacing loan portfolio growth of 3%.

Adjusted Pre-Provision Net Revenue: Increased by 8% compared to 2025.

Common Equity Tier 1 (CET1) Ratio: 10.53%, with a Tier 1 capital ratio of 11.95%.

Tangible Book Value Per Share: $14.34, up 9% year-over-year.

Net Charge-Offs: Decreased to $29 million, with a net charge-off ratio of 18 basis points.

2Strategic Updates and Business Highlights

Continued focus on relationship banking, with strong growth in Commercial & Industrial (C&I) loans, which increased by $624 million in the quarter.

Successful execution of a differentiated business model, enhancing client relationships and providing tailored solutions.

Notable growth in the C&I portfolio, with a strong pipeline for 2026.

Fee income decreased by $12 million quarter-over-quarter but increased by $13 million year-over-year.

Share repurchase program ongoing, with $230 million of common shares bought back during the quarter.

3Forward Guidance and Outlook

Full-year outlook maintained, with expectations for continued revenue growth driven by C&I lending and fee-based services.

Near-term CET1 target updated to 10.5%.

Anticipation of mid-single-digit loan growth and a revenue growth target of 3% to 7% for the year.

Management remains optimistic about the lending environment, particularly in C&I and commercial real estate (CRE) pipelines.

4Bad News, Challenges, or Points of Concern

Deposit Competition: Increased competition for deposits noted, with expectations of slight upward pressure on deposit costs in Q2 and Q3.

Consumer Loan Portfolio: Experienced a decline of $198 million, indicating potential volatility in consumer lending.

Commercial Real Estate (CRE): Continues to present headwinds, with challenges in loan balance growth as stabilized loans transition to permanent markets.

Economic Uncertainty: Ongoing geopolitical tensions and inflationary pressures could impact consumer discretionary spending and overall economic growth.

5Notable Q&A Insights

C&I Lending Environment: Management expressed optimism about strong C&I pipelines despite macroeconomic uncertainties, with business owners looking to grow and invest.

Mortgage Warehouse Lending: Expected seasonal increases in Q2, though overall mortgage origination remains low due to rising rates.

Credit Quality: Consistent credit performance noted, with a focus on monitoring sectors tied to consumer discretionary spending.

Expense Management: Expenses expected to remain flat year-over-year, with investments in talent and technology aimed at scaling revenue without significantly increasing costs.

M&A Stance: No immediate plans for acquisitions, with a focus on enhancing core business profitability and evaluating opportunistic fill-ins. Overall, First Horizon Corporation reported strong financial performance in Q1 2026, with a focus on maintaining momentum in lending and client relationships while navigating competitive pressures and economic uncertainties.