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