First Horizon Corporation Reports Fourth Quarter Net Income Available to Common of $234 million, or EPS of $0.42; $255 million, or $0.46, on an Adjusted basis*

Rhea-AI Summary

First Horizon Corporation reported its fourth quarter 2020 earnings, showing a net income of $234 million, down from $523 million in the previous quarter. The earnings per share (EPS) for Q4 was $0.42, impacted by $20 million in notable items linked to the IBERIABANK merger. For the full year, net income reached $822 million, with an EPS of $1.89. The Tangible Book Value per share increased by 3% to $10.23. CEO Bryan Jordan expressed pride in the company's performance amidst challenges and highlighted successful integration efforts.

Positive

• Fourth quarter net income available to common shareholders of $234 million, EPS of $0.42.
• For 2020, net income of $822 million, EPS of $1.89, up from $435 million in 2019.
• Tangible book value per share increased by 3%, reaching $10.23.

Negative

• Fourth quarter earnings decreased from $523 million in Q3 2020.
• Fourth quarter results affected by $20 million after-tax notable items.

Fourth quarter 2020 ROTCE of 16.7%; Adjusted ROTCE of 18.2%*

2020 net income available to common stockholders of $822 million, or EPS of $1.89; $528 million, or EPS of $1.22, on an Adjusted basis*

Tangible book value per share of $10.23 up 3% in the quarter

MEMPHIS, Tenn., Jan. 22, 2021 (GLOBE NEWSWIRE) -- First Horizon Corporation (NYSE: FHN or “First Horizon”) today reported fourth quarter 2020 net income available to common shareholders (“NIAC”) of $234 million, or earnings per share of $0.42, compared with third quarter 2020 NIAC of $523 million, or earnings per share of $0.95. Fourth quarter 2020 results were reduced by a net $20 million after-tax, or $0.04 per share, of notable items largely related to the IBERIABANK Corporation Merger (“IBKC Merger”) compared with a net $331 million after-tax benefit, or $0.60 per share, in third quarter 2020. Excluding notable items, adjusted fourth quarter NIAC totaled $255 million, or $0.46 per share, compared with $193 million, or $0.35 per share in third quarter 2020.*

Full year 2020 NIAC of $822 million, or earnings per share of $1.89, compares with $435 million, or earnings per share of $1.38, in 2019, largely reflecting the impact of the IBKC Merger which closed on July 1, 2020. 2020 results include a net $294 million after-tax benefit, or $0.68 per share, from notable items largely related to the IBKC merger and Truist branch acquisition compared with a net $90 million after-tax, or $0.29 per share, reduction tied to notable items in 2019. On an adjusted basis, full year 2020 NIAC of $528 million, or earnings per share of $1.22, compares with NIAC of $525 million, or $1.66 per share, in 2019. Results prior to third quarter 2020 reflect legacy First Horizon results only.

“I am tremendously proud of our performance this year and the results we delivered despite the challenging landscape. We clearly benefited from strong fixed income and mortgage banking fees and disciplined expense management,” said Chief Executive Officer and President Bryan Jordan. “We are executing well on our merger of equals with IBERIABANK, and I am even more confident today in the power of our diversified business model, expanded footprint and combined expertise to meet the needs of our clients.”

Jordan continued, “I commend our associates for their unwavering commitment to our clients, communities and core values. Throughout a year of unprecedented challenges, our team achieved transformational milestones with incredible resiliency. Looking ahead, we remain focused on successfully executing on the integration, delivering on our strategic priorities, and investing in products and technology to ensure an exceptional client experience and help drive enhanced shareholder value.”

The fourth quarter 2020 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 January 22 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 5989125. 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 January 22 until midnight CT on February 5. To listen to the replay, dial 1-877-344-7529 (U.S. callers) or 412-317-0088 (international callers); the access code is 10150084. 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.

CONTACT:

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

*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 earnings materials at https://ir.fhnc.com for our use of Non-GAAP measures and a reconciliation of these measures to GAAP.

FAQ

What was First Horizon's net income for the fourth quarter of 2020?

First Horizon's net income available to common shareholders for Q4 2020 was $234 million.

How much did First Horizon earn in 2020?

First Horizon reported a net income of $822 million for the full year 2020.

What was First Horizon's EPS for the fourth quarter of 2020?

The earnings per share (EPS) for First Horizon in Q4 2020 was $0.42.

What notable items impacted First Horizon's fourth quarter earnings?

Fourth quarter earnings were reduced by $20 million after-tax notable items related to the IBERIABANK merger.

What is First Horizon's tangible book value per share as of the fourth quarter of 2020?

First Horizon's tangible book value per share increased by 3% to $10.23.