Q2 2026 First Horizon Corp Earnings Call Transcript
Key Points
- Adjusted earnings per share increased by $0.09 or 20% year-over-year, indicating strong financial performance.
- Period-end loan balances grew by approximately $2 billion compared to the second quarter of 2025, showcasing robust loan growth.
- Net interest income grew by $9 million in the quarter, reflecting strong loan growth and effective interest rate management.
- The company saw a 50% year-over-year increase in new commercial real estate commitments, highlighting strong production and growth potential.
- First Horizon Corp (FHN) maintained a strong CET1 ratio of 10.5%, indicating solid capital strength and financial stability.
- Net interest margin compressed by 3 basis points, reflecting challenges in maintaining margin amidst a competitive rate environment.
- Deposit costs increased by 5 basis points due to a competitive environment, impacting overall profitability.
- Fee income decreased by $1 million from the prior quarter, driven by a decline in fixed income revenues due to macroeconomic volatility.
- Net charge-offs increased by $4 million to $33 million, indicating some deterioration in credit quality.
- The provision for credit losses was $15 million in the quarter, reflecting ongoing credit risk management challenges.
Welcome to the First Horizon second-quarter 2026 earnings conference call. (Operator Instructions)
I will now hand the conference over to Tyler Craft, Head of Investor Relations.
Thank you, Rebecca. Good morning. Welcome to our second-quarter 2026 results conference call. Thank you for joining us. Today, our Chairman, President, and CEO, Bryan Jordan; and Chief Financial Officer, Hope Dmuchowski, will provide prepared remarks, after which we'll be happy to take your questions.
We're also pleased to have our Chief Credit Officer, Thomas Hung, here to assist with questions as well. Our remarks today will reference our earnings presentation, which is available on our website at ir.firsthorizon.com. As always, I need to remind you that we will make forward-looking statements that are subject to risks and uncertainties.
Therefore, we ask you to review the factors that may cause our results to differ from our expectations on page 2 of our presentation and in our SEC filings.
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