First Horizon Sees Strong Momentum in Q1 2026 with 15% Adjusted ROTCE
The First Horizon has reported a strong start to 2026, with the company delivering its third straight quarter of 15% or greater adjusted Return on Tangible Common Equity (ROTCE). This success is fueled by strong Commercial and Industrial (C&I) client growth and relationship-focused client activity across their markets.
In his opening remarks during the Q1 2026 earnings conference call, Chairman, President, and CEO Bryan Jordan highlighted the company's differentiated business model. He explained that through this model, they continue to successfully execute by providing tailored solutions to meet client needs and turning insights into profitable outcomes. Jordan emphasized that their focus is on building true client relationships, staying disciplined on price and structure, and supporting clients with the full capabilities of their franchise.
Chief Financial Officer Hope Dmuchowski also commented on the company's performance in the first quarter, citing improved profitability. She noted that amidst rate decreases over the last year, they have grown net interest income 6% year-over-year, outpacing loan portfolio growth of 3%. This demonstrates their continued focus on profitable growth.
One notable highlight from the quarter is the impressive performance of their core C&I business. The company saw a $624 million increase in loan balance growth, compared to flat growth in the first quarter of 2025. This strong showing contributed to an 8% improvement in adjusted pre-provision net revenue compared to the same period last year.
The First Horizon's management also discussed their deposit performance during the conference call. They reported a decrease of $1 billion in period-end balances, primarily driven by reductions in broker deposits. The average rate paid on interest-bearing deposits decreased to 2.28%, with a cumulative deposit beta of 69% since rates started to fall in September 2024.
Thomas Hung, Chief Credit Officer, and Hope Dmuchowski also took questions from participants during the conference call. The company's focus on building client relationships and their diversified business model were highlighted as key factors contributing to their success in the quarter.
The First Horizon's performance in Q1 2026 is a testament to the company's ability to navigate changing market conditions while maintaining a strong focus on profitable growth and client relationships. With continued momentum, they are well-positioned for future success.
