First Horizon Corporation Reports Second Quarter Net Income Available to Common Shareholders of $295 Million, or EPS of $0.53; $321 Million, or $0.58, on an Adjusted basis*

Rhea-AI Summary

First Horizon Corporation (NYSE:FHN) reported strong financial results for Q2 2021, with a net income of $295 million, or $0.53 per share, up from $225 million in Q1. Adjusted net income increased to $321 million, or $0.58 per share. The return on tangible common equity (ROTCE) improved to 20.4%. Tangible book value per share rose 4% to $10.74. Notably, Q2 results were impacted by $26 million in notable items related to the IBERIABANK merger. The company anticipates increasing loan demand and economic growth in the latter half of the year.

Positive

• Net income increased to $295 million, up from $225 million in Q1 2021.
• Adjusted net income rose to $321 million, or $0.58 per share, an increase from $284 million in Q1.
• ROTCE improved to 20.4%, up from 15.9% in Q1.
• Tangible book value per share increased 4% to $10.74.

Negative

• Q2 results included $26 million in notable items from the IBERIABANK merger, affecting earnings.

Second quarter 2021 ROTCE of 20.4% improved from 15.9% in first quarter 2021; Adjusted ROTCE of 22.2% improved from 20.2%*

Tangible book value per share of $10.74 up 4% from first quarter 2021

MEMPHIS, Tenn., July 16, 2021 (GLOBE NEWSWIRE) -- First Horizon Corporation (NYSE:FHN or “First Horizon”) today reported second quarter 2021 net income available to common shareholders ("NIAC") of $295 million, or earnings per share of $0.53, compared with first quarter 2021 NIAC of $225 million, or earnings per share of $0.40. Second quarter 2021 results were reduced by a net $26 million after-tax, or $0.05 per share, of notable items largely related to the IBERIABANK Corporation Merger ("IBKC Merger") compared with a net $60 million after-tax reduction, or $0.11 per share, in first quarter 2021. Excluding notable items, adjusted second quarter 2021 NIAC of $321 million, or $0.58 per share, increased from $284 million, or $0.51 per share in first quarter.

“We demonstrated solid performance in the quarter with net income available to common shareholders of $295 million reflecting the benefit of improving overall economic conditions and credit quality, our diversified business model, and strong focus on execution despite challenging conditions across the banking industry," said President and Chief Executive Officer Bryan Jordan. “We remain focused on controlling the things we can control including expenses and deposit pricing and making investments that drive future growth. We are seeing increasing loan pipeline growth and expect demand and economic growth to pick up in the back half of the year as the economy continues to normalize.”

“It has been a little more than a year since we closed our merger with IBERIABANK,” Jordan continued, “I am extremely pleased with the progress we have made bringing two companies together and proud of our associates for their extraordinary efforts and unwavering commitment to our clients, communities and company.”

The second 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 July 16 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 0216267. 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 July 16 until midnight CT on July 30 . To listen to the replay, dial 1-877-344-7529 (U.S. callers) or 412-317-0088 (international callers); the access code is 10156505. 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

FHN-G

^{*ROTCE, PPNR, and "Adjusted" results (which exclude notable items) 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 second 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.}

 

FAQ

What are First Horizon's earnings for Q2 2021?

First Horizon reported net income of $295 million, or $0.53 per share, for Q2 2021.

How did the ROTCE change in Q2 2021 for FHN?

The ROTCE improved to 20.4% in Q2 2021 from 15.9% in Q1 2021.

What is the tangible book value per share for First Horizon?

The tangible book value per share increased to $10.74, up 4% from Q1 2021.

Did First Horizon's adjusted net income grow in Q2 2021?

Yes, adjusted net income rose to $321 million, or $0.58 per share, in Q2 2021.

What notable items affected First Horizon's earnings in Q2 2021?

Q2 earnings were affected by $26 million in notable items related to the IBERIABANK merger.