First Horizon Corporation Reports Second Quarter 2022 Net Income Available to Common Shareholders of $166 Million, or EPS of $0.29; $195 million, or $0.34, on an adjusted basis*
Net income before provisioning up 19% compared to the previous quarter and up 18% on an adjusted basis*
ROTCE of 12.1% and Adjusted ROTCE of 14.2% with a tangible book value per share of $10.18*
MEMPHIS, Tenn., July 19, 2022 /PRNewswire/ — First Horizon Corporation (NYSE: FHN or “First Horizon”) today announced second quarter net income available to common shareholders (“NIAC”) for $166 millioni.e. earnings per share of $0.29against a CANI for the first quarter of 2022 of $187 millioni.e. earnings per share of $0.34.
Second quarter 2022 results were reduced by a net $29 million after tax, or $0.05 per share, of notable items compared to a net $24 millionWhere $0.04 per share, in the first quarter of 2022. Excluding notable items, CANI for the second quarter of 2022 adjusted by $195 millionWhere $0.34 per share, past $211 millionWhere $0.38 per share in the first quarter of 2022. The results reflect a $0.10 reduction per share related to provision for credit losses as well as the impact of the suspension of share buybacks and an increase of 17.7 million diluted shares following the first quarter preferred issue of 2022 related to the proposed transaction with TD.
“Our results this quarter reflect strong net interest income and continued spending discipline which helped to mitigate the macroeconomic impact on our fixed income and wealth management businesses and our provision charges.” , said the Chairman and CEO. Bryan Jordan. “Our high-growth markets and specialty lending businesses saw loan growth of 4%, before the impact of the Paycheck Protection Program and mortgage warehouse loans. With credit quality still strong and a very asset-sensitive balance sheet, we are well positioned for the future and remain confident in the strength of the proposed transaction with TD Bank Group.”
The results for the second quarter of 2022 are available on https://ir.firsthorizon.com. In addition, the presentation of financial results and earnings will be provided on a Form 8-K which will be available on the Securities and Exchange Commission’s website at www.sec.gov.
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 “Foreign Exchange Act”). Forward-looking statements relate to FHN’s beliefs, plans, objectives, expectations and estimates. Forward-looking statements are not representations of historical information, but rather relate 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”, ” in the future”, and other expressions that indicate future events and trends.
Forward-looking statements are necessarily based on 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 relate to future business decisions and actions. (including acquisitions and divestitures), are subject to change and could cause FHN’s actual future results 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 was filed as an exhibit; at the beginning and at Items 1, 1A and 7 of FHN’s most recent Annual Report on Form 10-K, as amended; and at the beginning and at Item 1A of Part II of FHN’s Quarterly Report(s) on Form 10-Q filed this year.
FHN undertakes 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 Non-GAAP Regulatory Measures
Certain measures included in this report are “non-GAAP”, which means that they are not presented in accordance with United States generally accepted accounting principles, nor are they codified in United States banking regulations currently applicable to FHN. . Although other entities may use different methods of calculation than those used by FHN for non-GAAP measures, FHN’s management believes these measures are relevant to understanding financial position, capital position and financial results. of FHN and its sectors of activity. Non-GAAP measures are communicated to FHN’s management and Board of Directors through various internal reports.
The non-GAAP measures presented in this press release are fully taxable equivalent measures, basic net interest income (“NII”), net income before provision (“PPNR”), loans and leases to excluding Paycheck Protection Program (“PPP”) and/or Mortgage Company Loans (“LMC”), Average Return on Tangible Common Equity (“ROTCE”), Tangible 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.
The presentation of regulatory measures, even those that are non-GAAP, provides a meaningful basis for comparison with other financial institutions subject to the same regulations as FHN, as evidenced by their use by banking regulators in reviewing the capital adequacy of financial institutions. Although not in accordance with GAAP, these regulatory measures are not considered “non-GAAP” under United States financial reporting rules as long as their presentation complies with regulatory standards. The regulatory measures used in this financial supplement include: Common Equity Tier 1 (“CET1”) capital, generally defined as common equity less goodwill, other intangibles and certain other required regulatory deductions; Tier 1 capital, generally defined as the sum of Tier 1 capital (including common shares and instruments that cannot be redeemed at the holder’s option) adjusted for certain items under risk capital regulations ; and risk-weighted assets, which is a measure of total on-balance sheet and off-balance sheet assets adjusted for credit and market risk, used to determine regulatory capital ratios.
Refer to the table of reconciliation of non-GAAP measures to GAAP measures and the presentation of the most comparable GAAP items starting on page 21.
First Horizon Corp. (NYSE: FHN)with $85.1 billion active at June 30, 2022, is a leading regional financial services company, dedicated to helping our customers, communities and associates unlock their full potential with capital and advice. Based at Memphis, TN, the banking subsidiary First Horizon Bank operates in 12 southern states of the United States. The Company and its subsidiaries provide commercial, private, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, mortgage and insurance banking services. securities. services. First Horizon has been recognized as one of the nation’s top employers by Fortune and Forbes magazines and among America’s 10 Most Reputable Banks. More information is available at www.FirstHorizon.com.
*ROTCE, PPNR, basic net interest income (NII), tangible book value per share, non-PPP and/or LMC loans and leases, 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 see Second Quarter 2022 Earnings Documents at https://ir.firsthorizon.com (News and Events | Events and Presentations) for a description of our use of non-GAAP measures and a reconciliation of such measures to GAAP presentation.
Contact: Investor Relations, Ellen Taylor (901) 523-4450
Media Relations, Beth Ardoin(337) 278-6868
SOURCE Premier Horizon Corporation