Workflow
First Horizon Q4 Earnings Beat, Expenses & Provisions Decline Y/Y
FHNFirst Horizon(FHN) ZACKS·2025-01-17 14:20

Earnings Performance - Adjusted EPS for Q4 2024 was 43 cents, beating the Zacks Consensus Estimate of 38 cents and up from 32 cents in the year-ago quarter [1] - Full-year 2024 adjusted EPS was 1.55,surpassingtheZacksConsensusEstimateof1.55, surpassing the Zacks Consensus Estimate of 1.5 and up from 1.43inthepreviousyear[2]−Netincomeavailabletocommonshareholders(GAAPbasis)was1.43 in the previous year [2] - Net income available to common shareholders (GAAP basis) was 158 million for Q4 2024, down 9.7% YoY, and 738millionforfull−year2024,down14.7738 million for full-year 2024, down 14.7% YoY [3] Revenue and Expenses - Total quarterly revenues were 729 million, down 8.9% YoY and missing the Zacks Consensus Estimate of 822.47million[4]−Full−yearrevenueswere822.47 million [4] - Full-year revenues were 3.19 billion, down 8% YoY and missing the Zacks Consensus Estimate of 3.28billion[4]−NIIincreased2.13.28 billion [4] - NII increased 2.1% YoY to 630 million, with a net interest margin of 3.33%, up 6 basis points from the prior-year quarter [4] - Non-interest income declined 45.9% YoY to 99million,primarilyduetoa99 million, primarily due to a 91 million securities loss [5] - Non-interest expenses decreased 11.2% YoY to 508million,drivenbylowerincentives,commissionfees,anddeferredcompensationexpenses[5]−Efficiencyratioimprovedto61.98508 million, driven by lower incentives, commission fees, and deferred compensation expenses [5] - Efficiency ratio improved to 61.98%, down from 71.14% in the year-ago period, indicating higher profitability [5] Loans, Deposits, and Credit Quality - Total period-end loans and leases were 62.55 billion, up marginally from the previous quarter, while total period-end deposits decreased 1.5% to 65.6billion[6]−Non−performingloansandleasesincreased30.365.6 billion [6] - Non-performing loans and leases increased 30.3% YoY to 602 million [7] - The ratio of total allowance for loan and lease losses to loans and leases was 1.3%, up from 1.26% in the prior-year quarter, with the allowance increasing 5.4% YoY to 815million[7]−Netcharge−offsdecreased63.9815 million [7] - Net charge-offs decreased 63.9% YoY to 13 million, and the provision for credit losses plunged 80% YoY to 10million[8]CapitalPositionandShareRepurchases−CommonEquityTier1ratiowas11.210 million [8] Capital Position and Share Repurchases - Common Equity Tier 1 ratio was 11.2%, down from 11.4% in the year-ago quarter [10] - Total capital ratio was 13.9%, down from 14% in the prior-year quarter, and the tier 1 leverage ratio was 10.6%, down from 10.7% [10] - The company repurchased 163 million worth of common stock in the reported quarter [11] Industry Updates - Prosperity Bancshares, Inc (PB) is scheduled to release Q4 2024 earnings on Jan 29, with a Zacks Rank 3 (Hold) and a consensus estimate of 1.33pershare[13]−Cullen/FrostBankers,Inc(CFR)isscheduledtoreleaseQ42024earningsonJan30,withaZacksRank2(Buy)andaconsensusestimateof1.33 per share [13] - Cullen/Frost Bankers, Inc (CFR) is scheduled to release Q4 2024 earnings on Jan 30, with a Zacks Rank 2 (Buy) and a consensus estimate of 2.15 per share [13][14]