First Horizon Corporation Reports First Quarter Net Income Available to Common Shareholders of $225 million, or EPS of $0.40; $284 million, or $0.51, on an Adjusted Basis*

Rhea-AI Summary

First Horizon Corporation reported a first quarter 2021 net income available to common shareholders of $225 million, or $0.40 per share, down from $234 million or $0.42 in Q4 2020. Adjusted earnings increased to $284 million, or $0.51 per share, from $255 million in Q4 2020. The company showed improved credit quality and cost savings of $76 million from merger integration efforts. Tangible book value per share rose to $10.30, a 1% increase. Notable items related to the IBERIABANK merger reduced earnings by $60 million.

Positive

• Adjusted net income available to common shareholders increased to $284 million, or $0.51 per share.
• Credit quality improved, indicating better risk management.
• Annualized merger-related cost savings totaled $76 million in Q1 2021.
• Tangible book value per share rose to $10.30, reflecting a 1% increase.

Negative

• Net income available to common shareholders decreased to $225 million from $234 million in Q4 2020.
• Notable items related to the IBERIABANK merger reduced earnings by $60 million after-tax.

First quarter 2021 ROTCE of 15.9%; Adjusted ROTCE of 20.2% improved from 18.2% in fourth quarter 2020*

Tangible book value per share of $10.30 up 1% from fourth quarter 2020

MEMPHIS, Tenn., April 21, 2021 (GLOBE NEWSWIRE) -- First Horizon Corporation (NYSE: FHN or “First Horizon”) today reported first quarter 2021 net income available to common shareholders ("NIAC") of $225 million, or earnings per share of $0.40, compared with fourth quarter 2020 NIAC of $234 million, or earnings per share of $0.42. First quarter 2021 results were reduced by a net $60 million after-tax, or $0.11 per share, of notable items largely related to the IBERIABANK Corporation Merger ("IBKC Merger") compared with a net $20 million after-tax reduction, or $0.04 per share, in fourth quarter 2020. Excluding notable items, adjusted first quarter 2021 NIAC of $284 million, or $0.51 per share, increased from $255 million, or $0.46 per share in fourth quarter 2020.*

"Our balanced business model and countercyclical businesses continued to perform well in the first quarter," said President and Chief Executive Officer Bryan Jordan. "Credit quality improved, and our expense discipline resulted in incremental cost savings. Merger integration efforts are going well, and I am proud of our associates’ unwavering support of our clients and communities. Annualized merger-related cost savings totaled $76 million in the first quarter, and since the inception of the most recent phase of the Paycheck Protection Program, we have assisted clients and their employees by funding over 15,000 loans totaling approximately $1.5 billion."

Jordan continued, "Thank you to our associates for their extraordinary dedication to our clients and communities and focus on growing our business all while helping to bring our two companies together."

The first quarter 2021 earnings materials are available on https://ir.fhnc.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.

Conference call information
Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on April 21 by dialing 1-888-317-6003 (if calling from the U.S.) or 412-317-6061 (if calling from outside the U.S) and entering access code 3384998. The conference call will begin at 8:30 a.m. CT. Participants can also opt to listen to the live audio webcast with the accompanying slide presentation at http://ir.fhnc.com/Event.

A replay of the call will be available beginning at noon CT on April 21 until midnight CT on May 5. To listen to the replay, dial 1-877-344-7529 (U.S. callers) or 412-317-0088 (international callers); the access code is 10153245. A replay of the webcast will also be available at http://ir.fhnc.com/Event and will be archived on the site for one year.

*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 reference the first quarter 2021 earnings conference call materials at https://ir.fhnc.com (News & Events | Events & Presentations) for a description of our use of Non-GAAP measures and a reconciliation of these measures to GAAP presentation.

FHN-G

Contact:

Investor Relations, Ellen Taylor (901) 523-4450

Media Relations, Beth Ardoin, (337) 278-6868

FAQ

What were First Horizon's earnings per share for the first quarter of 2021?

First Horizon reported earnings per share of $0.40 for Q1 2021.

How much did First Horizon's net income decrease in the first quarter of 2021 compared to the fourth quarter of 2020?

Net income decreased from $234 million in Q4 2020 to $225 million in Q1 2021.

What is the tangible book value per share for First Horizon as of Q1 2021?

The tangible book value per share for First Horizon is $10.30 for Q1 2021.

What cost savings did First Horizon achieve from merger integration efforts in Q1 2021?

First Horizon achieved annualized merger-related cost savings of $76 million in Q1 2021.

How did notable items related to the IBERIABANK merger affect First Horizon's earnings?

Notable items from the IBERIABANK merger reduced First Horizon's earnings by $60 million after-tax.