First Horizon Corporation (NYSE:FHN) reported fourth-quarter earnings on Thursday that beat analyst expectations, but shares fell nearly 5% in premarket trading as investors weighed margin pressure and loan growth dynamics.
The regional lender posted earnings per share of $0.52, above consensus estimates of $0.46. Net income available to common shareholders totaled $257 million, up 1% from the prior quarter and 63% higher than the same period last year. Revenue was essentially flat sequentially at $888 million but rose 22% year over year.
Net interest income edged higher to $676 million from the third quarter, while net interest margin declined 4 basis points to 3.51%. The margin compression followed lower loan yields after two Federal Reserve rate cuts. Period-end loans grew 2% to $64.2 billion, driven largely by a 20% increase in lending to mortgage companies.
“We are pleased to report a strong fourth quarter performance to close out an outstanding 2025 for First Horizon,” said Bryan Jordan, chairman, president, and chief executive officer. “Consistent execution of our strategy across the organization has driven tremendous earnings growth throughout the year.”
Asset quality remained solid during the quarter. The allowance for credit losses to loans ratio declined to 1.31% from 1.38% in the previous quarter. Net charge-offs totaled $30 million, or 0.19% of average loans, slightly higher than 0.17% in the third quarter.
For full-year 2025, First Horizon reported net income available to common shareholders of $956 million, a 29% increase from 2024. Earnings per share for the year rose to $1.87 from $1.36 a year earlier.
The bank’s Common Equity Tier 1 capital ratio stood at 10.64% at year-end, down from 11.0% in the third quarter, reflecting continued loan growth and $335 million in share repurchases completed during the quarter at an average price of $21.32 per share.
More about First Horizon
First Horizon is a U.S. regional banking company providing commercial, consumer, and wealth management services. The bank operates across multiple states, serving individuals, businesses, and institutional clients with a focus on relationship-driven banking and disciplined risk management.