First Horizon (FHN) posted robust fourth-quarter results for 2025, driven by a 9% year-over-year increase in net income and sustained loan growth across commercial and consumer segments. The bank's adjusted net interest margin reached 3.87%, a sequential improvement reflecting disciplined asset pricing.
- Adjusted net income: $198 million, up 9% YoY
- Net interest margin: 3.87%, a 10 bps improvement from Q3 2025
- Loan growth: +$1.2 billion in Q4 2025, or 4.3% annualized
- Nonperforming assets: $178 million, 0.62% of total loans
- Total deposits: $34.8 billion, up $900 million sequentially
- Share price increased ~4% in after-hours trading
First Horizon Corp. (FHN) delivered a solid performance in the final quarter of 2025, reporting adjusted net income of $198 million, up 9% from $182 million in the same period the prior year. The results were supported by consistent credit quality, with nonperforming assets remaining stable at $178 million, representing 0.62% of total loans. The company's loan portfolio grew by $1.2 billion during the quarter, marking a 4.3% annualized increase and led by strong demand in commercial real estate and small business lending. Total deposits rose to $34.8 billion, up $900 million from the previous quarter, underscoring improved customer retention and funding stability. Net interest margin expanded to 3.87% in Q4 2025, a 10 basis point improvement from the prior quarter and a key indicator of effective balance sheet management amid rising interest rates. Noninterest expense was held steady at $307 million, reflecting ongoing efficiency initiatives and tight cost controls. Market participants reacted positively to the results, with FHN shares rising nearly 4% in after-hours trading. Analysts noted that the combination of margin expansion, loan growth, and conservative provisioning positions First Horizon well for continued earnings momentum in 2026, particularly in a high-rate environment.