First Horizon Corporation's Momentum Continues with Strong Second Quarter 2024 Results; Net Income Available to Common Shareholders of $184 Million or EPS of $0.34; $195 Million or $0.36 on an Adjusted Basis, up $0.01 from prior quarter*

Rhea-AI Summary

First Horizon (NYSE: FHN) reported strong second quarter 2024 results with net income available to common shareholders of $184 million or EPS of $0.34. Adjusted earnings were $195 million or $0.36 per share, up $0.01 from the prior quarter. The company achieved a 2Q24 ROTCE of 11.3% and an Adjusted ROTCE of 12.0%. Tangible Book Value per Share increased to $12.22, up $0.06 quarter-over-quarter.

CEO Bryan Jordan highlighted solid performance in net interest income and banking fee growth. The company returned $212 million of capital to shareholders in Q2. First Horizon continues to make progress on strategic investments while identifying operational efficiencies to enhance client experience and financial performance.

Positive

• Net income available to common shareholders of $184 million, with EPS of $0.34
• Adjusted earnings increased to $0.36 per share, up $0.01 from previous quarter
• Strong ROTCE of 11.3% and Adjusted ROTCE of 12.0%
• Tangible Book Value per Share grew to $12.22, up $0.06 quarter-over-quarter
• Net interest income and banking fee growth reported
• Returned $212 million of capital to shareholders in Q2

Negative

• Second quarter 2024 results were reduced by $11 million after-tax due to notable items

Insights

Financial Analyst

The second quarter results of First Horizon Corporation indicate stable financial performance. The net income available to common shareholders at $184 million and EPS of $0.34 align closely with the first quarter figures, showing a modest but positive gain in consistency. The adjusted figures, which exclude notable items, reveal an adjusted NIAC of $195 million and adjusted EPS of $0.36, indicating a slight improvement of $0.01 from the previous quarter.

The Return on Tangible Common Equity (ROTCE) of 11.3% and adjusted ROTCE of 12.0% are respectable figures, suggesting efficient use of equity capital to generate returns. The Tangible Book Value per Share (TBVPS) increment, albeit modest, reinforces a gradual but steady growth, enhancing shareholder value over time.

From an investor's perspective, the quarterly results signify a robust and resilient performance, encouraging confidence amidst a potentially volatile market. However, potential investors should consider the slight reduction caused by notable items and evaluate how these adjustments might affect future projections.

This analysis suggests that First Horizon is maintaining its financial health and strategic direction, gradually enhancing its competitive positioning and value return to shareholders.

Market Research Analyst

First Horizon's report highlights the bank's ability to sustain growth in a competitive market. The stability in net interest income and banking fee growth demonstrates effective management and operational efficiency. Furthermore, the company's strategic investments and operational efficiencies seem to contribute positively to both client experience and financial performance.

The company’s emphasis on returning $212 million of capital to shareholders this quarter underlines a commitment to reward investors, which could be an attractive aspect for potential stakeholders. However, it is essential for retail investors to consider the long-term sustainability of such returns and whether the bank can continue to optimize operational efficiencies without compromising on service quality.

Overall, First Horizon’s focus on enhancing its competitive position and delivering shareholder value bodes well for future prospects, although close monitoring of their investment strategies and operational adjustments is advisable.

2Q24 ROTCE of 11.3% and Adjusted ROTCE of 12.0% with Tangible Book Value per Share of $12.22, up $0.06 QoQ*

MEMPHIS, Tenn., July 17, 2024 /PRNewswire/ -- First Horizon Corporation (NYSE: FHN or "First Horizon") today reported second quarter net income available to common ("NIAC") shareholders of $184 million or earnings per share of $0.34, compared with first quarter 2024 net income available to common of $184 million or earnings per share of $0.33. Second quarter 2024 results were reduced by a net $11 million after-tax or $0.02 per share of notable items compared with $12 million or $0.02 per share in first quarter 2024. Excluding notable items, adjusted second quarter 2024 NIAC was $195 million or $0.36 per share compared to $195 million or $0.35 per share in first quarter 2024.

"We are pleased to report strong second quarter results. Our banking franchise delivered a solid quarter with net interest income and banking fee growth," said Chairman, President and Chief Executive Officer Bryan Jordan. "Our balance sheet continues to perform well, which combined with strong earnings, enabled the return of $212 million of capital to shareholders this quarter."

Jordan continued, "We continue to make significant progress on our strategic investments while identifying operational efficiencies that enhance the client experience and our financial performance. I am proud of the continued progress we have made in strengthening our competitive position and remain confident in our ability to continue to deliver value to our shareholders, associates, clients, and communities."

Conference Call Information

Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on July 17, 2024 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 463278. 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 July 17 until midnight CT on July 31, 2024. To listen to the replay, dial 1-866-813-9403 (U.S. callers); the access code is 610953. A replay of the webcast will also be available on our website on July 17 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; and in the forepart, and in Item 1A of Part II, of FHN's Quarterly Report(s) on Form 10-Q filed after that Annual Report.

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, pre-provision net revenue ("PPNR"), 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 20 of FHN's complete 2Q24 earnings release available at https://ir.firsthorizon.com.

First Horizon Corp. (NYSE: FHN), with $82.2 billion in assets as of June 30, 2024, 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.

*References to "Adjusted" results exclude notable items and, along with ROTCE and certain other financial measures, are Non-GAAP Financial Measures. Please see page 4 for information on our use of Non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 21 of FHN's complete 2Q24 earnings release available at https://ir.firsthorizon.com. All references to loans include leases. All references to earnings per share are based on diluted shares.

View original content to download multimedia:https://www.prnewswire.com/news-releases/first-horizon-corporations-momentum-continues-with-strong-second-quarter-2024-results-net-income-available-to-common-shareholders-of-184-million-or-eps-of-0-34-195-million-or-0-36-on-an-adjusted-basis-up-0-01-from-prior-q-302198687.html

SOURCE First Horizon Corporation

FAQ

What was First Horizon's (FHN) EPS for Q2 2024?

First Horizon (FHN) reported earnings per share (EPS) of $0.34 for Q2 2024, or $0.36 on an adjusted basis.

How much capital did First Horizon (FHN) return to shareholders in Q2 2024?

First Horizon (FHN) returned $212 million of capital to shareholders in the second quarter of 2024.

What was First Horizon's (FHN) ROTCE in Q2 2024?

First Horizon (FHN) achieved a Return on Tangible Common Equity (ROTCE) of 11.3% in Q2 2024, with an Adjusted ROTCE of 12.0%.

How did First Horizon's (FHN) Tangible Book Value per Share change in Q2 2024?

First Horizon's (FHN) Tangible Book Value per Share increased to $12.22 in Q2 2024, up $0.06 from the previous quarter.