Operating leverage remains under pressure as the efficiency ratio deteriorated to 58.6% in 2026Q1, compounded by a $142 million loss in non-interest income.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Net Interest Income | 2.66B | 2.62B | 2.51B | 2.54B | 2.39B | 1.99B | 1.66B | 1.21B | 1.22B | 842.31M | 729.08M | 653.72M | 627.72M | 637.37M | 688.67M | 700.83M | 730.84M | 776.47M | 895.08M | 940.64M | 996.94M | 984.03M | 856.31M | 805.78M | 755.61M | 688.91M | 598.35M | 589.5M | 540.5M | 483.1M | 451.2M |
| NII Growth % | 22.41% | 4.42% | -1.14% | 6.19% | 19.96% | 19.98% | 37.36% | -0.82% | 44.84% | 15.53% | 11.53% | 4.14% | -1.52% | -7.45% | -1.74% | -4.11% | -5.88% | -13.25% | -4.84% | -5.65% | 1.31% | 14.91% | 6.27% | 6.64% | 9.68% | 15.14% | 1.5% | 9.07% | 11.88% | 7.07% | 15.51% |
| Net Interest Margin % | 3.16% | 3.13% | 3.06% | 3.11% | 3.03% | 2.24% | 1.97% | 2.79% | 2.99% | 2.03% | 2.55% | 2.5% | 2.45% | 2.68% | 2.72% | 2.83% | 2.96% | 2.98% | 2.89% | 2.54% | 2.63% | 2.69% | 2.88% | 3.29% | 3.17% | 3.34% | 3.22% | 3.21% | 2.89% | 3.36% | 3.46% |
| Interest Income | 4.18B | 4.19B | 4.35B | 4.1B | 2.68B | 2.16B | 1.9B | 1.62B | 1.55B | 989.93M | 817.91M | 736.4M | 709.25M | 732.05M | 798.95M | 832.44M | 880.29M | 992.94M | 1.61B | 2.31B | 2.33B | 1.84B | 1.17B | 1.05B | 1.04B | 1.2B | 1.36B | 1.21B | 1.13B | 941.3M | 896.5M |
| Interest Expense | 1.52B | 1.56B | 1.84B | 1.56B | 291M | 164M | 236M | 414M | 326M | 147.62M | 88.83M | 82.69M | 81.53M | 94.68M | 110.29M | 131.6M | 149.45M | 216.47M | 711.64M | 1.37B | 1.33B | 856.15M | 310.49M | 247.59M | 286.58M | 512.6M | 764.7M | 617.8M | 593.3M | 458.2M | 445.3M |
| Loan Loss Provision | -312M | 65M | 150M | 260M | 95M | -310M | 503M | 45M | 8M | 0 | 11M | 9M | 27M | 55M | 78M | 44M | 270M | 880M | 1.08B | 272.76M | 83.13M | 67.68M | 48.35M | 86.7M | 92.18M | 93.22M | 67.49M | 57.9M | 51.4M | 51.1M | 35.7M |
| Non-Interest Income | 427M | 799M | 585M | 615M | 728M | 996M | 903M | 608M | 667M | 460.73M | 510.59M | 472.27M | 518.96M | 549.25M | 635.7M | 729.9M | 853.91M | 1.26B | 1.45B | 859.95M | 1.17B | 1.4B | 1.36B | 1.64B | 1.31B | 1.1B | 912.67M | 1.12B | 985.5M | 668.1M | 571.1M |
| Non-Interest Income % | 9.28% | 16.03% | 11.85% | 13.04% | 21.34% | 31.58% | 32.24% | 27.24% | 30.14% | 31.76% | 38.43% | 39.07% | 42.25% | 42.87% | 44.31% | 46.72% | 49.24% | 56.01% | 47.44% | 27.16% | 33.38% | 43.2% | 53.88% | 60.89% | 55.73% | 47.68% | 40.1% | 48.19% | 46.5% | 41.51% | 38.91% |
| Total Revenue | 4.6B | 4.99B | 4.94B | 4.71B | 3.41B | 3.15B | 2.8B | 2.23B | 2.21B | 1.45B | 1.33B | 1.21B | 1.23B | 1.28B | 1.43B | 1.56B | 1.73B | 2.26B | 3.06B | 3.17B | 3.5B | 3.24B | 2.53B | 2.69B | 2.35B | 2.3B | 2.28B | 2.33B | 2.12B | 1.61B | 1.47B |
| Revenue Growth % | -21.43% | 0.97% | 4.71% | 38.23% | 8.15% | 12.6% | 25.49% | 0.86% | 52.55% | 9.2% | 9.91% | -1.59% | -4.14% | -10.69% | -8.17% | -9.91% | -23.16% | -26.17% | -3.44% | -9.44% | 7.9% | 28.06% | -6.07% | 14.41% | 2.51% | 0.91% | -2.35% | 9.96% | 31.68% | 9.66% | 11.26% |
| Non-Interest Expense | 2.04B | 2.08B | 1.94B | 1.77B | 1.87B | 2.02B | 1.13B | 1.19B | 1.17B | 994.17M | 883.35M | 1.01B | 801.45M | 1.11B | 1.35B | 1.24B | 1.26B | 1.58B | 1.59B | 1.84B | 1.74B | 1.67B | 1.5B | 1.64B | 1.42B | 1.2B | 1.11B | 1.28B | 1.12B | 785M | 704.4M |
| Efficiency Ratio | 44.41% | 41.62% | 39.32% | 37.48% | 54.71% | 63.92% | 40.31% | 53.18% | 52.64% | 68.53% | 66.49% | 83.46% | 65.25% | 86.88% | 93.97% | 79.17% | 72.83% | 70.05% | 52.15% | 58.23% | 49.85% | 51.57% | 59.46% | 60.89% | 60.21% | 52.35% | 48.62% | 54.72% | 52.93% | 48.78% | 48% |
| Operating Income | 1.35B | 1.28B | 1B | 1.13B | 1.16B | 1.28B | 933M | 586M | 714M | 308.87M | 345.32M | 108.25M | 318.23M | 18.43M | -101.7M | 149.85M | 51.75M | -420.53M | -328.84M | -315.61M | 338.08M | 645.17M | 666.81M | 719M | 558.06M | 488.56M | 337M | 379.4M | 352.9M | 315.1M | 282.2M |
| Operating Margin % | 29.39% | 25.7% | 20.36% | 23.92% | 33.98% | 40.71% | 33.31% | 26.25% | 32.26% | 21.29% | 25.99% | 8.96% | 25.91% | 1.44% | -7.09% | 9.59% | 2.98% | -18.63% | -10.76% | -9.97% | 9.67% | 19.91% | 26.36% | 26.69% | 23.71% | 21.27% | 14.81% | 16.28% | 16.65% | 19.58% | 19.23% |
| Operating Income Growth % | - | 27.46% | -10.9% | -2.67% | -9.74% | 37.62% | 59.21% | -17.93% | 131.16% | -10.56% | 218.99% | -65.98% | 1626.51% | 118.12% | -167.87% | 189.54% | 112.31% | -27.88% | -4.19% | -193.35% | -47.6% | -3.24% | -7.26% | 28.84% | 14.22% | 44.97% | -11.18% | 7.51% | 12% | 11.66% | 11.54% |
| Pretax Income | 1.34B | 1.28B | 1B | 1.13B | 1.16B | 1.28B | 933M | 586M | 714M | 308.87M | 345.32M | 108.25M | 318.23M | 18.43M | -101.7M | 149.85M | 51.75M | -420.53M | -328.84M | -315.61M | 338.08M | 645.17M | 666.81M | 719M | 558.06M | 488.56M | 337M | 379.4M | 352.9M | 315.1M | 282.2M |
| Pretax Margin % | 29.07% | 25.7% | 20.36% | 23.92% | 33.98% | 40.71% | 33.31% | 26.25% | 32.26% | 21.29% | 25.99% | 8.96% | 25.91% | 1.44% | -7.09% | 9.59% | 2.98% | -18.63% | -10.76% | -9.97% | 9.67% | 19.91% | 26.36% | 26.69% | 23.71% | 21.27% | 14.81% | 16.28% | 16.65% | 19.58% | 19.23% |
| Income Tax | 296M | 282M | 211M | 212M | 247M | 274M | 76M | 134M | 157M | 131.89M | 106.81M | 10.94M | 84.19M | -19.39M | -85.26M | 15.84M | -21.18M | -174.94M | -154.41M | -140.73M | 87.28M | 204.07M | 212.4M | 245.69M | 181.61M | 162.19M | 104.42M | 131.9M | 126.5M | 117.6M | 102.3M |
| Effective Tax Rate % | 22.12% | 22.01% | 21% | 18.79% | 21.31% | 21.34% | 8.15% | 22.87% | 21.99% | 42.7% | 30.93% | 10.11% | 26.45% | -105.19% | 83.83% | 10.57% | -40.93% | 41.6% | 46.95% | 44.59% | 25.82% | 31.63% | 31.85% | 34.17% | 32.54% | 33.2% | 30.99% | 34.77% | 35.85% | 37.32% | 36.25% |
| Net Income | 1.03B | 983M | 775M | 897M | 900M | 999M | 845M | 441M | 545M | 165.51M | 227.05M | 85.88M | 222.52M | 26.9M | -27.76M | 131.2M | 50.2M | -269.84M | -191.99M | -170.11M | 462.91M | 438M | 454.41M | 473.31M | 376.45M | 318.21M | 232.58M | 247.5M | 226.4M | 197.5M | 179.9M |
| Net Margin % | 22.31% | 19.72% | 15.7% | 19.02% | 26.39% | 31.67% | 30.17% | 19.76% | 24.63% | 11.41% | 17.09% | 7.11% | 18.12% | 2.1% | -1.93% | 8.4% | 2.89% | -11.96% | -6.28% | -5.37% | 13.24% | 13.52% | 17.96% | 17.57% | 15.99% | 13.86% | 10.22% | 10.62% | 10.68% | 12.27% | 12.26% |
| Net Income Growth % | 28.21% | 26.84% | -13.6% | -0.33% | -9.91% | 18.22% | 91.61% | -19.08% | 229.28% | -27.1% | 164.38% | -61.41% | 727.09% | 196.92% | -121.16% | 161.34% | 118.6% | -40.55% | -12.86% | -136.75% | 5.69% | -3.61% | -3.99% | 25.73% | 18.3% | 36.82% | -6.03% | 9.32% | 14.63% | 9.78% | 9.1% |
| Net Income (Continuing) | 1.04B | 999M | 794M | 916M | 912M | 1.01B | 857M | 452M | 557M | 176.98M | 238.51M | 97.31M | 234.05M | 37.82M | -16.44M | 134.01M | 72.94M | -245.59M | -174.44M | -174.88M | 250.8M | 441.1M | 454.41M | 473.31M | 376.45M | 326.38M | 232.58M | 247.5M | 226.4M | 197.5M | 179.9M |
| EPS (Diluted) | 2.11 | 1.88 | 1.36 | 1.54 | 1.53 | 1.74 | 1.89 | 1.38 | 1.65 | 0.65 | 0.94 | 0.34 | 0.90 | 0.10 | -0.11 | 0.50 | -0.20 | -1.43 | -0.97 | -1.12 | 3.02 | 2.73 | 2.89 | 3.02 | 2.32 | 2.02 | 1.47 | 1.54 | 1.43 | 1.25 | 1.12 |
| EPS Growth % | 38.89% | 38.24% | -11.69% | 0.65% | -12.07% | -7.94% | 36.96% | -16.36% | 153.85% | -30.85% | 176.47% | -62.22% | 800% | 190.91% | -122% | 350% | 86.01% | -47.42% | 13.39% | -137.09% | 10.62% | -5.54% | -4.3% | 30.17% | 14.85% | 37.41% | -4.55% | 7.69% | 14.4% | 11.61% | 10.89% |
| EPS (Basic) | - | 1.89 | 1.37 | 1.58 | 1.62 | 1.76 | 1.90 | 1.39 | 1.66 | 0.66 | 0.95 | 0.34 | 0.91 | 0.10 | -0.11 | 0.50 | -0.18 | -1.43 | -0.97 | -1.12 | 3.10 | 2.82 | 2.97 | 3.11 | 2.38 | 2.07 | 1.49 | 1.58 | 1.47 | 1.28 | 1.12 |
| Diluted Shares Outstanding | 487M | 496M | 544.28M | 561.73M | 566M | 551.24M | 433.72M | 315.66M | 327.44M | 244.45M | 235.29M | 236.27M | 236.74M | 239.79M | 248.35M | 262.86M | 263.37M | 234.43M | 206.68M | 151.06M | 153.55M | 155.29M | 154.17M | 156.95M | 156.31M | 157.89M | 157.73M | 160.59M | 158M | 158.05M | 161.67M |
Credit Provisioning Volatility
According to the latest quarterly data, First Horizon's net interest income growth has remained largely range-bound, with a 5.7% year-over-year increase in 2026Q1, suggesting that the bank is struggling to expand its core interest-earning capacity amidst a challenging deposit funding environment in the Southeast.
The modest growth in NII appears to be constrained by rising deposit betas, which are likely offsetting the benefits of asset repricing. Investors should monitor whether the bank can maintain this trajectory if loan demand in the Sunbelt continues to moderate.
As reported in recent financial statements, First Horizon's efficiency ratio spiked to 58.6% in 2026Q1, a significant departure from the sub-40% levels observed in mid-2025, indicating that operating leverage is currently under pressure from both revenue contraction and elevated non-interest expense burdens.
This sharp increase suggests that the bank's dual-track model is struggling to maintain cost discipline during periods of market turbulence. The inability to scale expenses in line with revenue volatility warrants further investigation into the fixed-cost structure of the FHN Financial segment.
Based on the provided income statement data, First Horizon recorded a substantial provision expense of $337 million in 2026Q1, a stark reversal from the zero or near-zero provisioning seen in late 2025, which may indicate emerging asset quality concerns within the regional loan portfolio.
The magnitude of this provision suggests that management is proactively addressing potential credit deterioration, likely tied to commercial real estate exposures. This shift implies a more cautious outlook on the credit cycle that could weigh on earnings for the foreseeable future.
Data from the most recent quarter reveals a negative $142 million in non-interest income, highlighting the extreme sensitivity of the FHN Financial segment to market conditions, which contrasts sharply with the positive fee contributions of $158 million to $212 million seen throughout 2025.
This volatility suggests that the bank's reliance on fixed-income trading fees introduces significant earnings risk that is not present in traditional retail-focused peers. Investors should consider whether this cyclicality is a permanent feature of the current institutional business model.
Quick answers to the most common questions about buying FHN stock.
First Horizon Corporation (FHN) is profitable, generating $983.0M in net income for the fiscal year ending 2025 with a net profit margin of 19.7%.
First Horizon Corporation (FHN) reported an operating income of $1.28B, resulting in an operating profit margin of 25.7%. This margin reflects the operational efficiency of the business before interest and taxes.
First Horizon Corporation (FHN) generated $3.36B in gross profit for the year, representing a gross profit margin of 67.3%. This demonstrates the company's core pricing power and production efficiency.