On July 17, 2024, First Horizon Corp (FHN, Financial) released its 8-K filing for the second quarter of 2024. First Horizon Corp is the parent company of First Tennessee Bank, a prominent regional bank with about 200 branches around Tennessee. The regional bank is responsible for roughly 65% of its revenue, while capital markets make a 25% contribution. The remainder is split between the firm's non-strategic (wind-down) and corporate operations. First Horizon concentrates on offering a variety of banking products mainly in its home state, where it has the second-largest deposit franchise with a 13% deposit market share.
Performance Overview
First Horizon Corp (FHN, Financial) reported a net income available to common shareholders of $184 million or earnings per share (EPS) of $0.34 for the second quarter of 2024. This compares favorably to the first quarter of 2024, where the net income available to common shareholders was also $184 million but with an EPS of $0.33. Adjusted net income for Q2 2024 was $195 million or $0.36 per share, up from $195 million or $0.35 per share in Q1 2024.
Key Financial Achievements
First Horizon Corp (FHN, Financial) achieved several notable financial milestones in Q2 2024:
- Return on Tangible Common Equity (ROTCE) of 11.3% and Adjusted ROTCE of 12.0%, with Tangible Book Value per Share of $12.22, up $0.06 quarter-over-quarter.
- Net interest income of $629 million, up $4 million from the previous quarter.
- Noninterest expense decreased by $15 million to $500 million, reflecting operational efficiencies.
- Average loan and lease balances increased by $0.9 billion to $62.0 billion, driven by the spring home-buying season and growth in commercial real estate.
Income Statement Highlights
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Interest Income | $629 million | $625 million | $631 million |
| Noninterest Income | $186 million | $194 million | $400 million |
| Total Revenue | $815 million | $819 million | $1,031 million |
| Noninterest Expense | $500 million | $515 million | $555 million |
| Net Income Available to Common Shareholders | $184 million | $184 million | $317 million |
| EPS | $0.34 | $0.33 | $0.56 |
Balance Sheet and Cash Flow Highlights
First Horizon Corp (FHN, Financial) reported average deposits of $65.0 billion, a slight decrease of $0.4 billion from the previous quarter. The company's average loan and lease balances increased to $62.0 billion, up $0.9 billion from Q1 2024. The provision for credit losses was $55 million, up $5 million from the previous quarter, reflecting a stable credit performance.
Commentary and Analysis
"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."
First Horizon Corp (FHN, Financial) continues to make significant progress on its strategic investments while identifying operational efficiencies that enhance the client experience and financial performance. The company's ability to maintain a strong balance sheet and deliver consistent earnings is crucial for its competitive position in the regional banking sector.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from First Horizon Corp for further details.
