Period End Deposits Increased $2 Billion or 4% and Period End Loans Grew
$3 Billion or 5% in 2023
Fourth Quarter 2023 Net Income
Available to Common Shareholders of $175
Million or EPS of $0.31;
$178 Million or $0.32 on an Adjusted Basis*
4Q23 ROTCE of 10.9% and Adjusted
ROTCE of 11.1% with Tangible Book Value per Share of $12.13, up 8% QoQ*
MEMPHIS,
Tenn., Jan. 18, 2024 /PRNewswire/ -- First
Horizon Corporation (NYSE: FHN or "First Horizon") today reported
full year 2023 net income available to common shareholders ("NIAC")
of $865 million or earnings per share
of $1.54, compared with full year
2022 NIAC of $868 million or earnings
per share of $1.53. 2023 results
benefited from a net $59 million
after-tax or $0.11 per share of
notable items compared with a net reduction of $82 million or $0.15 per share in 2022.
"We reported strong fourth quarter and full-year 2023 results
demonstrating our ability to successfully execute on our strategic
priorities and navigate the economic headwinds during the year.
Prudent risk management, strong liquidity, and robust capital
levels supported loan growth of 5% during the year. We ran a
successful deposit campaign mid-year, raising $6 billion of new-to-bank deposits," said
Chairman, President and Chief Executive Officer Bryan Jordan. "We remain intently focused on
credit discipline and expect to continue to perform well over the
cycle."
"I am exceptionally proud of the resilience of our team, their
unwavering dedication to our clients and the many accomplishments
achieved during the year. As we enter 2024 and celebrate 160 years
in business, we are well-positioned to capitalize on our
exceptional client relationships, diversified business model, and
attractive footprint," continued Jordan.
Conference Call Information
Analysts, investors and interested parties may call toll-free
starting at 8:15 a.m. CT on
January 18, 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 172464. 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 January
18 until midnight CT on
February 1, 2024. To listen to the
replay, dial 1-866-813-9403 (U.S. callers); the access code is
404538. A replay of the webcast will also be available on our
website on January 18 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 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"), 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 22 of FHN's complete 4Q23 earnings release available at
https://ir.firsthorizon.com.
First Horizon Corp. (NYSE: FHN), with $81.7 billion in assets as of December 31,
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 4Q23 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