First Horizon Corporation

Second-quarter adjusted EPS was $0.54, up $0.01 sequentially and $0.09, or 20%, year over year. Adjusted PPNR was $364 million, up 1% sequentially and 8% versus the first half of 2025. Period-end loans increased by $953 million sequentially, and period-end deposits increased by $1.6 billion, driven primarily by brokered deposits. Net interest margin compressed 3 bps to the high 3.40s, NII rose $9 million, average interest-bearing deposit cost was 2.33% (up 5 bps), net charge-offs were $33 million, the net charge-off ratio was 20 bps, provision for credit losses was $15 million, ACL/loans was 1.24%, and CET1 ended at 10.5%. Management reiterated full-year expectations, including a normalized NIM in the mid-to-high 3.40s, flat expenses from here for the next two quarters, and continued focus on balance-sheet profitability and the $100 million PPNR opportunity.

Bryan Jordan said the quarter reflected disciplined execution and improving momentum, with loan growth, earnings growth, and PPNR improvement all moving in the right direction. His tone was constructive but measured: he repeatedly said the bank is encouraged by demand, client activity, and hiring progress, while acknowledging rate uncertainty, deposit competition, and some spread pressure. He emphasized the strategy of deepening full relationships, investing in technology and talent, and using First Horizon’s “big bank capabilities with a community bank touch” to win and retain clients.

Hope Dmuchowski highlighted that adjusted EPS was $0.54, adjusted PPNR was $364 million, and average loan balances increased by $1.5 billion. She said margin compressed 3 bps to the high 3.40s, NII increased $9 million, and the average interest-bearing deposit cost moved up to 2.33% as brokered deposits rose and the funding mix remained competitive. On credit, she cited $33 million of net charge-offs, a 20 bps NCO ratio, $15 million of provision, ACL/loans at 1.24%, and CET1 at 10.5%, while also noting $100 million of buybacks in the quarter and $807 million of buybacks plus a dividend increase over the past year.

Analysts focused heavily on deposit costs, funding mix, loan pricing, NIM, and the sustainability of revenue growth. Management said deposit costs should look similar to last year, with competition strongest in Q2 and Q3 and any next rate move potentially affecting the path; they also said the seasonal use of brokered deposits could unwind depending on loan growth and funding needs. On loans, Bryan Jordan described the market as surprisingly optimistic but still competitive, especially for larger deals, and said spreads may face some pressure while volume stays healthy. Questions on capital returned to the potential impact of Basel III changes and CET1 deployment; management said loan growth remains the priority, followed by dividends and buybacks, and that a lower CET1 could be supported over time if conditions allow.