First Horizon Corporation Reports Third Quarter 2023 Net Income Available to Common Shareholders of $129 Million, or EPS of $0.23; $150 Million, or $0.27, on an Adjusted Basis*

Rhea-AI Summary

First Horizon Corporation reports third quarter 2023 net income available to common shareholders of $129 million or EPS of $0.23 ($150 million or $0.27 on an adjusted basis).

Positive

• Period end deposits increased $1.6 billion QoQ or 2%, up 6% year-to-date
• Period end loans increased $0.5 billion QoQ, or 1%, up 6% year-to-date
• Adjusted third quarter 2023 NIAC of $150 million, or $0.27 per share, decreased from $219 million, or $0.39 per share, in second quarter 2023
• Loan and deposit trends continue to be solid. More than 19,000 new deposit accounts opened bringing over $1 billion in new balances

Negative

• Third quarter 2023 results were reduced by a net $20 million after-tax, or $0.04 per share, of notable items compared with a benefit of $98 million, or $0.17 per share, in second quarter 2023

Period end deposits increased $1.6 billion QoQ or 2%, up 6% year-to-date with common equity tier 1 ratio of 11.1%

Period end loans increased $0.5 billion QoQ, or 1%, up 6% year-to-date

ROTCE of 8.0% and adjusted ROTCE of 9.2% with tangible book value per share of $11.22*

MEMPHIS, Tenn., Oct. 18, 2023 /PRNewswire/ -- First Horizon Corporation (NYSE: FHN or "First Horizon") today reported third quarter net income available to common shareholders ("NIAC") of $129 million, or earnings per share of $0.23, compared with second quarter 2023 NIAC of $317 million, or earnings per share of $0.56.

Third quarter 2023 results were reduced by a net $20 million after-tax, or $0.04 per share, of notable items compared with a benefit of $98 million, or $0.17 per share, in second quarter 2023. Excluding notable items, adjusted third quarter 2023 NIAC of $150 million, or $0.27 per share, decreased from $219 million, or $0.39 per share, in second quarter 2023.

"Our third quarter results demonstrated the strength and resilience of our company. Our loan and deposit trends continue to be solid. We opened more than 19,000 new deposit accounts bringing over $1 billion in new balances," said Chairman, President and Chief Executive Officer Bryan Jordan. "We remain disciplined with credit quality; as the economic environment drives credit normalization, we expect credit to perform well over the cycle." 

"Thanks to the hard work of our associates, we've proven that we can be nimble and flexible with capital and expense control while managing the dynamics of our balance sheet across various economic cycles. Our actions will give us the ability to generate strong shareholder returns over the long-term," continued Jordan.

Conference Call Information

Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on October 18, 2023 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 535504. 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 October 19  until midnight CT on November 3, 2023. To listen to the replay, dial 1-866-813-9403 (U.S. callers); the access code is 902096. A replay of the webcast will also be available on our website on October 19 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, 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.

Refer to the tabular reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items beginning on page 23 of FHN's complete 3Q23 earnings release available at https://ir.firsthorizon.com. 

First Horizon Corp. (NYSE: FHN), with $82.5 billion in assets as of September 30, 2023, 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.

^*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 3Q23 earnings materials at https://ir.firsthorizon.com for a description of our use of Non-GAAP measures and a reconciliation of these measures to GAAP presentation.

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SOURCE First Horizon Corporation

FAQ

What is the net income available to common shareholders for the third quarter of 2023?

$129 million or EPS of $0.23 ($150 million or $0.27 on an adjusted basis)

What is the percentage increase in period end deposits year-to-date?

6%

What is the percentage increase in period end loans year-to-date?

6%

What is the adjusted third quarter 2023 NIAC?

$150 million, or $0.27 per share

How did the adjusted third quarter 2023 NIAC compare to the second quarter 2023?

It decreased from $219 million, or $0.39 per share

What is the notable item that reduced the third quarter 2023 results?

A net $20 million after-tax, or $0.04 per share

What is the impact of the economic environment on credit quality?

Credit is expected to perform well over the cycle

What is the tangible book value per share?

$11.22

What is the common equity tier 1 ratio?

11.1%