First Horizon Corporation's Momentum Continues with Strong Third Quarter 2024 Results; Net Income Available to Common Shareholders of $213 Million or EPS of $0.40; $224 Million or $0.42 on an Adjusted Basis, both up $0.06 from prior quarter*

Rhea-AI Summary

First Horizon (NYSE: FHN) reported strong third quarter 2024 results with net income available to common shareholders of $213 million or earnings per share of $0.40. Adjusted earnings were $224 million or $0.42 per share, both up $0.06 from the prior quarter. The company achieved a 3Q24 ROTCE of 12.6% and Adjusted ROTCE of 13.2%, with Tangible Book Value per Share increasing by $0.81 to $13.02.

CEO Bryan Jordan highlighted the 18% growth in earnings per share compared to the previous quarter, attributing it to strong performance from counter-cyclical businesses and the company's diversified business model. Credit quality remained stable, with net charge-offs declining for the second consecutive quarter and a modest increase in reserve coverage. The company also emphasized its support for associates, clients, and communities affected by recent hurricanes.

Positive

• Net income available to common shareholders increased to $213 million, up from $184 million in Q2 2024
• Earnings per share grew to $0.40, an 18% increase from $0.34 in the previous quarter
• Adjusted earnings per share rose to $0.42, up from $0.36 in Q2 2024
• Tangible Book Value per Share increased by $0.81 to $13.02
• ROTCE improved to 12.6%, with Adjusted ROTCE at 13.2%
• Net charge-offs declined for the second consecutive quarter

Negative

• Results were reduced by $11 million after-tax of notable items

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3Q24 ROTCE of 12.6% and Adjusted ROTCE of 13.2% with Tangible Book Value per Share of $13.02, up $0.81 QoQ*

MEMPHIS, Tenn., Oct. 16, 2024 /PRNewswire/ -- First Horizon Corporation (NYSE: FHN or "First Horizon") today reported third quarter net income available to common ("NIAC") shareholders of $213 million or earnings per share of $0.40, compared with second quarter 2024 net income available to common of $184 million or earnings per share of $0.34. Third quarter 2024 results were reduced by a net $11 million after-tax, or $0.02 per share, of notable items compared with $11 million, or $0.02, per share in second quarter 2024. Excluding notable items, adjusted third quarter 2024 NIAC was $224 million or $0.42 per share compared to $195 million or $0.36 per share in second quarter 2024.

"We delivered 18% growth in earnings per share compared to the prior quarter, driven by strong performance from our counter-cyclical businesses. Our results reflect the strength of our diversified business model and our continued focus on growing and deepening client relationships," said Chairman, President and Chief Executive Officer Bryan Jordan. "Our credit quality remains stable, with net charge-offs declining for the second consecutive quarter and modest increase in our reserve coverage."

Jordan continued, "We remain intently focused on continuing to support our associates, clients and communities devastated by recent hurricanes throughout the arduous recovery process. I am incredibly proud of the way the First Horizon team prepared for and responded to these catastrophic events, demonstrating profound empathy and concern for our affected associates and an unwavering commitment to serve our clients and communities in extraordinary ways, especially during their greatest times of need."

Conference Call Information

Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on October 16, 2024 by dialing 1-833-470-1428 (if calling from the U.S.) or 404-975-4839 (if calling from outside the U.S) and entering access code 622725. The conference call will begin at 8:30 a.m. CT.

Participants can also opt to listen to the live audio webcast at https://ir.firsthorizon.com/events-and-presentations/default.aspx.

A replay of the call will be available beginning at noon CT on October 16 until midnight CT on October 30, 2024. To listen to the replay, dial 1-866-813-9403 (U.S. callers); the access code is 856467. A replay of the webcast will also be available on our website on October 16 and will be archived on the site for one year.

Forward-Looking Statements 

This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to FHN's beliefs, plans, goals, expectations, and estimates. Forward-looking statements are not a representation of historical information, but instead pertain to future operations, strategies, financial results, or other developments. The words "believe," "expect," "anticipate," "intend," "estimate," "should," "is likely," "will," "going forward," and other expressions that indicate future events and trends identify forward-looking statements. Forward-looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, operational, economic, and competitive uncertainties and contingencies, many of which are beyond FHN's control, and many of which, with respect to future business decisions and actions (including acquisitions and divestitures), are subject to change and could cause FHN's actual future results and outcomes to differ materially from those contemplated or implied by forward-looking statements or historical performance. Examples of uncertainties and contingencies include those mentioned: in this document; in Items 2.02 and 7.01 of FHN's Current Report on Form 8-K filed with the Securities and Exchange Commission on the date of this release; in the forepart, and in Items 1, 1A, and 7, of FHN's most recent Annual Report on Form 10-K; and in the forepart, and in Item 1A of Part II, of FHN's Quarterly Report(s) on Form 10-Q filed after that Annual Report. FHN assumes no obligation to update or revise any forward-looking statements that are made in this document or in any other statement, release, report, or filing from time to time. Actual results could differ and expectations could change, possibly materially, because of one or more factors, including those factors mentioned in the reports listed above, those factors presented in the exhibits to that Form 8-K, and other factors not listed.

Throughout this document, numbers may not foot due to rounding, references to EPS are fully diluted, and capital ratios for the most recent quarter are estimates.

Use of non-GAAP Measures and Regulatory Measures that are not GAAP

Certain measures included in this report are "non-GAAP," meaning they are not presented in accordance with generally accepted accounting principles in the U.S. and also are not codified in U.S. banking regulations currently applicable to FHN. Although other entities may use calculation methods that differ from those used by FHN for non-GAAP measures, FHN's management believes such measures are relevant to understanding the financial condition, capital position, and financial results of FHN and its business segments. Non-GAAP measures are reported to FHN's management and Board of Directors through various internal reports.

The non-GAAP measures presented in this earnings release are fully taxable equivalent measures, pre-provision net revenue ("PPNR"), return on average tangible common equity ("ROTCE"), tangible common equity ("TCE") to tangible assets ("TA"), tangible book value ("TBV") per common share, and various consolidated and segment results and performance measures and ratios adjusted for notable items.

Presentation of regulatory measures, even those which are not GAAP, provide a meaningful base for comparability to other financial institutions subject to the same regulations as FHN, as demonstrated by their use by banking regulators in reviewing capital adequacy of financial institutions. Although not GAAP terms, these regulatory measures are not considered "non-GAAP" under U.S. financial reporting rules as long as their presentation conforms to regulatory standards. Regulatory measures used in this financial supplement include: common equity tier 1 capital ("CET1"), generally defined as common equity less goodwill, other intangibles, and certain other required regulatory deductions; tier 1 capital, generally defined as the sum of core capital (including common equity and instruments that cannot be redeemed at the option of the holder) adjusted for certain items under risk based capital regulations; and risk-weighted assets, which is a measure of total on- and off-balance sheet assets adjusted for credit and market risk, used to determine regulatory capital ratios.

Refer to the tabular reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items, beginning on page 20 of FHN's complete 3Q24 earnings release available at https://ir.firsthorizon.com.

First Horizon Corp. (NYSE: FHN), with $82.6 billion in assets as of September 30, 2024, is a leading regional financial services company, dedicated to helping our clients, communities and associates unlock their full potential with capital and counsel. Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates in 12 states across the southern U.S. The Company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services. First Horizon has been recognized as one of the nation's best employers by Fortune and Forbes magazines and a Top 10 Most Reputable U.S. Bank. More information is available at www.FirstHorizon.com.

*References to "Adjusted" results exclude notable items and, along with ROTCE and certain other financial measures, are Non-GAAP Financial Measures. All references to loans include leases. All references to earnings per share are based on diluted shares. Please see page 4 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 20 of FHN's complete 3Q24 earnings release available at https://ir.firsthorizon.com.

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SOURCE First Horizon Corporation

FAQ

What was First Horizon's (FHN) earnings per share in Q3 2024?

First Horizon (FHN) reported earnings per share of $0.40 in Q3 2024, or $0.42 on an adjusted basis.

How much did First Horizon's (FHN) net income increase in Q3 2024 compared to Q2 2024?

First Horizon's (FHN) net income available to common shareholders increased from $184 million in Q2 2024 to $213 million in Q3 2024.

What was First Horizon's (FHN) Tangible Book Value per Share in Q3 2024?

First Horizon's (FHN) Tangible Book Value per Share was $13.02 in Q3 2024, up $0.81 from the previous quarter.

How did First Horizon's (FHN) credit quality perform in Q3 2024?

First Horizon's (FHN) credit quality remained stable in Q3 2024, with net charge-offs declining for the second consecutive quarter and a modest increase in reserve coverage.