First Horizon Corporation (NYSE: FHN) reported fourth-quarter earnings that exceeded analyst expectations, supported by strong year-over-year profit growth.
The regional lender posted earnings per share of $0.52 for the quarter, above the consensus estimate of $0.46. Net income available to common shareholders totaled $257 million, representing a 1% increase from the prior quarter and a 63% jump from the same period last year.
Revenue was essentially flat sequentially at $888 million but rose 22% year over year. Net interest income came in at $676 million, slightly higher than the third quarter, while net interest margin declined 4 basis points to 3.51% following two Federal Reserve rate cuts that pressured loan yields.
Period-end loans increased 2% to $64.2 billion, driven primarily by a 20% increase in lending to mortgage companies. Asset quality remained stable, with the allowance for credit losses to loans ratio improving to 1.31% from 1.38% in the previous quarter. Net charge-offs totaled $30 million, or 0.19% of average loans, compared with 0.17% in the third quarter.
For full-year 2025, First Horizon reported net income available to common shareholders of $956 million, up 29% from 2024, while earnings per share rose to $1.87 from $1.36.
