First Horizon Reports Strong Q1 2026 Earnings, Initiates $233M Share Buyback, and Issues $400M Preferred Stock
Summary
First Horizon reported strong Q1 2026 earnings with significant year-over-year growth, executed a $233 million share repurchase, and issued $400 million in preferred stock, while maintaining stable credit quality and reiterating its 2026 outlook.
Key Events
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Strong Q1 2026 Financial Performance
Net income available to common shareholders increased 21% year-over-year to $257 million, and diluted EPS grew 29% year-over-year to $0.53. Return on tangible common equity (ROTCE) reached 15.1%.
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Significant Share Repurchase
The company repurchased $233 million of common stock at an average price of $24.54 per share, demonstrating a strong return of capital to shareholders. This is part of an existing program.
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Preferred Stock Issuance
First Horizon issued $400 million in Series H Preferred Stock in March 2026, which contributed to an increase in Tier 1 and total capital ratios, strengthening the company's capital base.
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Stable Credit Quality
Net charge-offs decreased slightly to $29 million (0.18% of total loans), and the nonperforming loan ratio remained consistent at 0.94%, indicating continued strong asset quality.
Analysis
First Horizon Corporation delivered robust first-quarter 2026 financial results, showcasing significant year-over-year growth in net income and EPS. The company's capital management actions, including a substantial $233 million share repurchase and a $400 million preferred stock issuance, demonstrate a commitment to both shareholder returns and balance sheet strength. These positive results, coupled with stable credit quality and a reiterated 2026 outlook, provide a strong foundation for the year and reinforce investor confidence in the company's operational discipline and strategic direction. The share repurchase program was previously authorized in the 10-K filed on 2026-02-27, and this filing reports the execution of a significant portion of that program.
At the time of this filing, FHN was trading at $24.50 on NYSE in the Finance sector, with a market capitalization of approximately $11.6B. The 52-week trading range was $16.36 to $26.56. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.