1Q24 ROTCE of 11.0% and Adjusted
ROTCE of 11.6% with Tangible Book Value per Share of $12.16, up $0.03
QoQ*
MEMPHIS,
Tenn., April 17, 2024 /PRNewswire/ -- First
Horizon Corporation (NYSE: FHN or "First Horizon") today reported
first quarter net income available to common shareholders of
$184 million or earnings per share of
$0.33, compared with fourth quarter
2023 NIAC of $175 million or earnings
per share of $0.31. First
quarter 2024 results were reduced by a net $12 million after-tax or $0.02 per share of notable items compared with
$3 million or $0.01 per share in fourth quarter 2023. Excluding
notable items, adjusted first quarter 2024 NIAC of $195 million or $0.35 per share increased from $178 million or $0.32 per share in fourth quarter 2023.
"We reported a strong quarter with 10% growth in adjusted net
income available to common shareholders from the fourth quarter. We
achieved positive operating leverage versus the prior quarter, as
revenue increased and expenses declined. Revenue growth was driven
by margin expansion in the core banking franchise, as well as
significant improvement in our counter-cyclical businesses," said
Chairman, President and Chief Executive Officer Bryan Jordan. "Credit quality remains stable,
and our strong capital and liquidity position us to continue to win
new client relationships and deepen existing ones."
Jordan continued, "As we celebrate our 160th year in business, I
remain confident in our ability to build on the value and earnings
power of our long-standing organization to deliver exceptional
results to our shareholders."
Conference Call Information
Analysts, investors and interested parties may call toll-free
starting at 8:15 a.m. CT on
April 17, 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 883096. 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 April 17
until midnight CT on May 1, 2024. To listen to the replay, dial
1-866-813-9403 (U.S. callers); the access code is 492536. A replay
of the webcast will also be available on our website on
April 17 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 (the
"Securities Act"), and Section 21E of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"). Forward-looking
statements pertain 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.
Forward-looking statements can be identified by the words
"believe," "expect," "anticipate," "intend," "estimate," "should,"
"is likely," "will," "going forward," and other expressions that
indicate future events and trends.
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 to which this
document has been filed as an exhibit; 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.
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 1Q24 earnings release available at
https://ir.firsthorizon.com.
First Horizon Corp. (NYSE: FHN), with $81.8 billion in assets as of March 31,
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 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 1Q24 earnings release available at
https://ir.firsthorizon.com.
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SOURCE First Horizon Corporation