First Horizon Corporation (FHN) Income Statement

Quarter-over-quarter NII growth has slowed to low single digits after a 7.5% year-over-year peak in 2025Q3, which may indicate that deposit repricing has largely offset asset yield gains. The recent slowdown in NII growth to 1.3% in 2026Q3 warrants further investigation into whether funding costs are now absorbing loan repricing benefits.

A stable margin alongside rising NII suggests the bank has been growing earning assets at a pace that offsets any yield-versus-funding spread pressure. Because the reported NIM is rounded to one decimal place, the data does not reveal whether spread movements are offsetting within the quarter, so investors should monitor the next disclosure for finer granularity.

The 2026Q3 spike is driven by negative non-interest income of -$276.0M, which compresses total revenue to $778.0M and pushes operating income negative. Excluding the distortion, the pre-2026 efficiency profile of around 58 to 62% appears more representative of normal operating leverage, though the 2026Q1 ratio of 96.2% also suggests fee pressure is not an isolated event.

A negative provision of this magnitude indicates the bank released credit reserves, which may have boosted 2026Q1 operating income to $357.0M and net income to $263.0M. Investors should treat this period's earnings as potentially non-recurring and assess whether underlying credit trends support the release.

The fee share of revenue dropped from 23.9% in 2025Q4 to -27.0% in 2026Q1 and -67.8% in 2026Q3, which may reflect large one-time losses or reclassifications rather than operating fee erosion. Without the underlying composition of fee lines, the cause cannot be confirmed, and the dependency on fee income should be re-examined once clearer disclosure is available.