Yahoo Finanza First Horizon Corp Reports Q1 2024 Earnings: A Close Match to Analyst Expectations
Net Income: Reported at $184 million, aligning closely with analyst projections of $189.02 million.
Earnings Per Share (EPS): Achieved $0.33, slightly below the estimated $0.34.
Revenue: Total revenue reached $819 million, surpassing the forecast of $809.19 million.
Adjusted EPS: Adjusted for notable items, EPS stood at $0.35, indicating a robust underlying performance.
Capital and Liquidity: Maintained strong with strategic positioning to foster new and existing client relationships.
On April 17, 2024, First Horizon Corp (NYSE:FHN) released its 8-K filing, announcing the financial results for the first quarter of 2024. The company reported a net income available to common shareholders of $184 million, or $0.33 per share, with an adjusted net income of $195 million, or $0.35 per share, reflecting a 9% increase over the previous quarter. First Horizon, headquartered in Memphis, Tennessee, is the parent company of First Tennessee Bank, which contributes significantly to its revenue through approximately 200 branches across the state.
The bank's performance this quarter was bolstered by a 10% growth in adjusted net income compared to the fourth quarter of 2023, driven by margin expansion in its core banking operations and improvements in counter-cyclical businesses. Despite facing challenges such as a competitive banking environment and economic uncertainties, First Horizon's strategic focus on enhancing its service offerings and expanding its client base has paid off, as evidenced by its strong capital and liquidity positions.
Chairman, President, and CEO Bryan Jordan highlighted the positive operating leverage achieved this quarter, with revenue growth outpacing expense increases. He remarked,
We reported a strong quarter with 10% growth in adjusted net income available to common shareholders from the fourth quarter. We achieved positive operating leverage versus the prior quarter, as revenue increased and expenses declined."
Financially, First Horizon demonstrated solid asset quality with a stable provision for credit losses at $50 million, unchanged from the previous quarter. The net interest income saw a slight increase to $625 million, up from $617 million in Q4 2023, supported by effective loan and deposit repricing strategies. Noninterest income rose to $194 million, up from $183 million in the prior quarter, primarily due to higher fixed income production.
On the balance sheet, average loans and leases held steady at $61.2 billion, while deposits showed a modest decline to $65.4 billion, reflecting a decrease in brokered deposits and ongoing pressure on non-interest bearing balances. The bank's capital ratios remained robust, with a Common Equity Tier 1 (CET1) ratio of 11.3%, slightly down from 11.4% in the previous quarter, as the bank continued its share repurchase program.
As First Horizon continues to navigate the complexities of the financial sector, its focus on maintaining a strong balance sheet and improving operational efficiencies is expected to sustain its growth trajectory and shareholder value in the upcoming quarters.
Explore the complete 8-K earnings release (here) from First Horizon Corp for further details.
This article first appeared on GuruFocus.
