First Horizon Corporation Reports First Quarter 2022 Net Income Available to Common Shareholders of $187 Million, or EPS of $0.34; $211 Million, or $0.38, on an Adjusted basis*

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First Horizon Corporation (NYSE: FHN) reported a first quarter 2022 net income of $187 million, or $0.34 per share, down from $219 million and $0.40 per share in the previous quarter. Adjusted net income fell to $211 million or $0.38 per share, compared to $260 million or $0.48 per share in Q4 2021. The decline was attributed to lower provision credit. The company also reported a ROTCE of 13.0% and an adjusted ROTCE of 14.7%, with a tangible book value per share of $10.46.

CEO Bryan Jordan noted successes in loan growth and integration efforts, while expressing concern over global uncertainties.

Positive

• C&I loan growth of 4% in Q1 2022.
• Successful integration of IBERIABANK systems completed.

Negative

• Net income decreased from $219 million to $187 million quarter-over-quarter.
• Adjusted net income fell from $260 million to $211 million quarter-over-quarter.
• Earnings per share declined from $0.40 to $0.34.

ROTCE of 13.0% and Adjusted ROTCE of 14.7% with tangible book value per share of $10.46*

MEMPHIS, Tenn., April 19, 2022 /PRNewswire/ -- First Horizon Corporation (NYSE: FHN or "First Horizon") today reported first quarter 2022 net income available to common shareholders ("NIAC") of $187 million, or earnings per share of $0.34, compared with fourth quarter 2021 NIAC of $219 million, or earnings per share of $0.40.

First quarter 2022 results were reduced by a net $24 million after-tax, or $0.04 per share, of notable items compared with a net $41 million, or $0.08 per share, in fourth quarter 2021. Excluding notable items, adjusted first quarter 2022 NIAC of $211 million, or $0.38 per share, decreased from $260 million, or $0.48 per share in fourth quarter of 2021. The decrease was led by a $0.04 per share reduction tied to lower provision credit.

"Our underlying results this quarter reflect the tremendous opportunities and momentum inherent in our higher-growth markets with C&I loan growth of 4% before the impact of paycheck protection program and mortgage warehouse loans," said President and Chief Executive Officer Bryan Jordan. "While higher long-term rates and global uncertainty impacted our countercyclical businesses, our highly asset-sensitive balance sheet is well positioned to benefit from rising short-term rates. I'm particularly proud of the hard work and dedication of our associates who contributed to the successful completion of the IBERIABANK systems and signage integration during the quarter. With that work behind us, we remain focused on driving value for our associates, clients, communities and shareholders as we look forward to completing the proposed transaction with TD Bank Group."

Jordan continued, "With the war in Ukraine, our hearts go out to the families, clients and associates directly impacted by this crisis and we hope that peace, safety and freedom can be quickly restored."

The first quarter 2022 earnings materials are available on https://ir.firsthorizon.com. In addition, the financial results and earnings presentation will be furnished on a Form 8-K that will be available on the Securities and Exchange Commission website at www.sec.gov.

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, as amended; and in the forepart, and in Item 1A of Part II, of FHN's Quarterly Report(s) on Form 10-Q filed this year.

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, core net interest income ("NII"), pre-provision net revenue ("PPNR"), loans and leases excluding paycheck protection program ('PPP") and/or Loans to Mortgage  Companies ("LMC"), 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.

Important Other Information

In connection with the proposed transaction with TD, First Horizon has filed a preliminary proxy statement and other materials with the SEC, and intends to file additional relevant materials with the SEC, including a definitive proxy statement on Schedule 14A. All preliminary materials are subject to completion.

Neither this report nor any exhibit constitutes an offer to sell or a solicitation of an offer to buy any securities or a solicitation of any vote or approval.

SHAREHOLDERS OF FIRST HORIZON ARE URGED TO READ, WHEN AVAILABLE, ALL RELEVANT DOCUMENTS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) FILED WITH THE SEC, INCLUDING FIRST HORIZON'S PROXY STATEMENT, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT FIRST HORIZON AND THE PROPOSED TRANSACTION WITH TD.

Investors and shareholders of First Horizon will be able to obtain a free copy of the definitive proxy statement as well as other relevant documents filed with the SEC without charge at the SEC's website (http://www.sec.gov). Copies of the definitive proxy statement and the filings with the SEC that will be incorporated by reference in that proxy statement can also be obtained, without charge, by directing a request to Clyde A. Billings Jr., First Horizon Corporation, 165 Madison, Memphis, TN 38103, telephone (901) 523-4444.

Participants in the Solicitation

First Horizon and certain of its directors, executive officers and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction under the rules of the SEC. Information regarding First Horizon's directors and executive officers is available in the proxy statement for its 2022 annual meeting of shareholders, which was filed with the SEC on March 14, 2022, and certain of its Current Reports on Form 8-K. Other information regarding the participants in the solicitation of proxies in respect of the proposed transaction and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials to be filed with the SEC. Free copies of these documents, when available, may be obtained as described in the preceding paragraph.

First Horizon Corp. (NYSE: FHN), with $88.7 billion in assets as of March 31, 2022, 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, mortgage, and title insurance 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.

*ROTCE, PPNR, Core net interest income (NII), tangible book value per share, loans and leases excluding PPP and/or LMC, and "Adjusted" results are Non-GAAP Financial Measures; NII, Total Revenue, NIM and PPNR are presented on a fully taxable equivalent basis; References to loans include leases and EPS are based on diluted shares; Capital ratios are preliminary. Please reference the first quarter 2022 earnings materials at https://ir.firsthorizon.com (News & Events | Events & Presentations) for a description of our use of Non-GAAP measures and a reconciliation of these measures to GAAP presentation.

Contact: Investor Relations, Ellen Taylor (901) 523-4450        
Media Relations, Beth Ardoin, (337) 278-6868

 

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SOURCE First Horizon Corporation

FAQ

What is the net income for First Horizon Corporation in Q1 2022?

First Horizon Corporation reported a net income available to common shareholders of $187 million in Q1 2022.

How much did First Horizon's earnings per share change in Q1 2022?

Earnings per share for First Horizon decreased from $0.40 in Q4 2021 to $0.34 in Q1 2022.

What was First Horizon Corporation's ROTCE for Q1 2022?

The ROTCE for First Horizon Corporation in Q1 2022 was 13.0%.

What significant challenges did First Horizon face in Q1 2022?

First Horizon faced challenges due to lower provision credits and global uncertainties.

What was the adjusted net income for First Horizon Corporation in Q1 2022?

The adjusted net income for First Horizon Corporation in Q1 2022 was $211 million.