First Horizon Q4 Earnings Beat, Expenses & Provisions Decline Y/Y

First Horizon Corporation’s FHN fourth-quarter 2024 adjusted earnings per share (excluding notable items) of 43 cents surpassed the Zacks Consensus Estimate of 38 cents. This compares favorably with 32 cents reported in the year-ago quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.For 2024, adjusted earnings per share (excluding notable items) was $1.55, which beat the Zacks Consensus Estimate of $1.5. This compares favorably with $1.43 reported in the year-ago quarter.Results benefited from a rise in net interest income (NII) and a decline in expenses. Also, lower provisions were another positive. However, a fall in fee income and a deteriorating capital position were major headwinds.Net income available to its common shareholders (GAAP basis) was $158 million, down 9.7% year over year.For 2024, the company reported net income available to its common shareholders (GAAP basis) of $738 million, which decreased 14.7% year over year.FHN’s Revenues and Expenses DeclineTotal quarterly revenues were $729 million, which decreased 8.9% year over year. Also, the top line missed the Zacks Consensus Estimate of $822.47 million.Full-year revenues aggregated to $3.19 billion, which decreased 8% year over year. The top line missed the Zacks Consensus Estimate of $3.28 billion. NII increased 2.1% year over year to $630 million. Additionally, the net interest margin increased 6 basis points from the prior-year quarter to 3.33%.Non-interest income was $99 million, which declined 45.9% from the year-ago level. The decrease was primarily due to a securities loss of $91 million reported in the quarter.Non-interest expenses decreased 11.2% year over year to $508 million. The fall was due to a decline in incentives and commission fees and deferred compensation expense.The efficiency ratio was 61.98%, down from the year-ago period’s 71.14%. A fall in the efficiency ratio indicates a rise in profitability.FHN’s Loans and Deposits Balances DeclineTotal period-end loans and leases, net of unearned income, were $62.55 billion, which increased marginally from the end of the previous quarter. Total period-end deposits of $65.6 billion decreased 1.5%.FHN’s Credit Quality: Mixed BagNon-performing loans and leases of $602 million increased 30.3% from the prior-year period.As of Dec. 31, 2024, the ratio of total allowance for loan and lease losses to loans and leases was 1.3%, up from 1.26% reported in the prior-year quarter. The allowance for loan and lease losses of $815 million rose 5.4% from the year-ago period.First Horizon witnessed net charge-offs of $13 million, which decreased 63.9% year over year. Moreover, the provision for credit losses was $10 million, which plunged 80% from the year-earlier quarter.FHN’s Capital Ratios DeterioratesAs of Dec. 31, 2024, the Common Equity Tier 1 ratio was 11.2%, down from 11.4% reported at the end of the year-ago quarter.The total capital ratio was 13.9%, down from the year-ago quarter’s 14%. The tier 1 leverage ratio was 10.6%, down from 10.7% in the year-ago quarter.FHN’s Share Repurchase UpdateIn the reported quarter, the company repurchased $163 million shares of common stock.Our Viewpoint on FHNFirst Horizon benefited from an increase in NII and reduced expenses. However, a decline in loan and deposit balances could pose long-term challenges to its financial performance.First Horizon Corporation Price, Consensus and EPS Surprise First Horizon Corporation price-consensus-eps-surprise-chart | First Horizon Corporation QuoteFirst Horizon currently sports Zacks Rank #1 (Strong Buy). You can see Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Earnings Dates & Expectations of Bank StocksProsperity Bancshares, Inc. PB is scheduled to release fourth-quarter 2024 earnings on Jan. 29. The company carries a Zacks Rank #3 (Hold) at present.The Zacks Consensus Estimate for PB’s quarterly earnings has remained unchanged at $1.33 per share over the past seven days.Cullen/Frost Bankers, Inc. CFR is scheduled to release fourth-quarter 2024 earnings on Jan. 30. The company carries a Zacks Rank #2 (Buy) at present.The Zacks Consensus Estimate for CFR’s quarterly earnings has remained unchanged at $2.15 per share over the past seven days.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Horizon Corporation (FHN): Free Stock Analysis Report Cullen/Frost Bankers, Inc. (CFR): Free Stock Analysis Report Prosperity Bancshares, Inc. (PB): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks