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