Pre-provision net revenue up 86% from the prior year and up 18% on an adjusted basis*
Period end deposits increased $4.0 billion QoQ, or 6%, up 3% year-to-date with common equity tier 1 ratio of 11.1%
ROTCE of 21.1% and adjusted ROTCE of 14.6% with tangible book value per share of $11.50*
MEMPHIS, Tenn., July 19, 2023 /PRNewswire/ -- First Horizon Corporation (NYSE: FHN or "First Horizon") today reported second quarter net income available to common shareholders ("NIAC") of $317 million, or earnings per share of $0.56, compared with first quarter 2023 NIAC of $243 million, or earnings per share of $0.43.
Second quarter 2023 results benefited from a net $98 million after-tax, or $0.17 per share, of notable items compared with a reduction of $16 million, or $0.03 per share, in first quarter 2023. Excluding notable items, adjusted second quarter 2023 NIAC of $219 million, or $0.39 per share, decreased from $259 million, or $0.45 per share in first quarter 2023.
"Our results this quarter reflect the continued strength, resilience, and momentum of our diversified business mix, the benefit of our attractive markets, and the dedication of our associates," said, Chairman, President and Chief Executive Officer Bryan Jordan. "Despite a challenging macroeconomic environment, we continued to serve our clients, growing period end loans by $2.3 billion and period end deposits by $4.0 billion, with over 32,000 new-to-bank clients bringing $3.5 billion in deposit balances."
Jordan continued, "I thank our associates for their unwavering commitment to our clients, communities, and core values. We remain focused on delivering top quartile returns by executing on our strategic priorities, growing our core businesses, empowering our talent, and providing a best-in-class client experience."
Conference Call Information
Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on July 19, 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 887297. The conference call will begin at 8:30 a.m. CT.
Participants can also opt to listen to the live audio webcast at First Horizon Second Quarter 2023 Earnings Presentation and Earnings Release - First Horizon Corporation<https://ir.firsthorizon.com/events-and-presentations/events/event-details/2023/First-Horizon-Second-Quarter-2023-Earnings-Presentation-and-Earnings-Release/default.aspx>
A replay of the call will be available beginning at noon CT on July 20 until midnight CT on August 2. To listen to the replay, dial 1-866-813-9403 (U.S. callers); the access code is 795216. A replay of the webcast will also be available on our website on July 20 and will be archived on the site for one year.
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.
First Horizon Corp. (NYSE: FHN), with $85.1 billion in assets as of June 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, tangible book value per share, loans and leases excluding 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 2Q23 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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/first-horizon-corporation-reports-second-quarter-2023-net-income-available-to-common-shareholders-of-317-million-or-eps-of-0-56-219-million-or-0-39--on-an-adjusted-basis-301880287.html
SOURCE First Horizon Corporation