Q4 2024 First Horizon Corp Earnings Call Transcript
Key Points
- First Horizon Corp (FHN) reported strong EPS growth in the fourth quarter of 2024, driven by margin expansion and strong credit performance.
- The company achieved an adjusted return on tangible common equity of 12.6% for the year, highlighting the strength of its diversified business model.
- Net interest margin was maintained at 3.35% despite declining interest rates, showcasing effective interest rate management.
- FHN successfully attracted new clients and retained existing relationships, resulting in over 3% growth in average loans and more than 2% growth in deposits.
- The company returned over $930 million to shareholders through dividends and share repurchases, demonstrating a strong commitment to shareholder returns.
- Fourth quarter results were negatively impacted by notable items, including a $91 million pre-tax loss from securities portfolio restructuring.
- Non-performing loans increased by 4 basis points, driven by slower than anticipated multifamily lease-ups.
- The company faced a $4 million reduction in service charges and fees due to changes related to overdraft charges.
- Commercial real estate balances declined as clients refinanced in the permanent market, indicating potential challenges in this sector.
- The allowance for credit losses to loans ratio decreased slightly, reflecting a more favorable economic outlook but also indicating potential vulnerability to economic shifts.
Good morning, and thank you all for attending the First Horizon fourth quarter 2024 earnings conference call. My name is Brika and I will be the moderator for today. (Operator instructions) I would now like to pass the conference over to your host, Tyler Craft, Head of Investor Relations at First Horizon Bank. Thank you. You may proceed, Tyler.
Thank you, Brika. Good morning. Welcome to our fourth quarter 2024 results conference call. Thank you for joining us. Today, our Chairman, President and CEO, Bryan Jordan; and Chief Financial Officer, Hope Dmuchowski will provide prepared remarks after which we'll be happy to take your questions. We're also pleased to have our Chief Credit Officer, Thomas Hung here to assist with questions as well.
Our remarks today will reference our earnings presentation which is available on our website at ir.firsthorizon.com. As always, I need to remind you that we will make forward-looking statements that are subject to risks and uncertainties. Therefore, we ask
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