Research
Research Alert: Fhn: Q1 Earnings Beat As Credit Quality Remains Pristine
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:FHN posted solid Q1 2026 results with operating EPS of $0.53 vs. $0.52 prior quarter, $0.03 above consensus. The bank demonstrated strong operational leverage with return on tangible common equity reaching 15.1% for the third consecutive quarter, above management's 15% target. Credit quality remained a bright spot as net charge-offs fell 1-bp to 0.18%, well below peers, while nonperforming loans held steady at 0.94%. Net interest income contracted 1%, primarily due to day count differences, but net interest margin expanded 1-bp to 3.52% as interest-bearing deposit costs declined 25 bps to 2.28%. Period-end loan balances increased $221M to $64.4B, with positive composition shifts toward higher-yielding C&I lending. The bank aggressively repurchased $233M in shares, contributing to a 10-bp decline in the CET1 ratio to 10.5%. FHN reduced its near-term CET1 target to 10.5% from 10.5%-10.75%, a reasonable change given the improved operating environment, in our view.
$FHN