First Horizon Stock Up on Q3 Earnings Beat, NII & Fee Income Rise Y/Y

Shares of First Horizon Corporation FHN gained more than 4% following the release of its better-than-expected third-quarter 2024 results. The company’s third-quarter adjusted earnings per share (excluding notable items) of 42 cents surpassed the Zacks Consensus Estimate of 38 cents. Moreover, the figure increased 55.6% year over year.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Results benefited from a rise in net interest income (NII) and non-interest income. Also, an increase in deposits and lower provisions were other positives. However, a rise in expenses and a fall in loan balances were major headwinds.Net income available to its common shareholders (GAAP basis) was $213 million, up 65.1% year over year.FHN’s Revenues and Expenses IncreaseTotal revenues were $828 million, which increased 6.4% year over year. Also, the top line beat the Zacks Consensus Estimate of $821.63 million.NII increased 3.6% year over year to $627 million. Additionally, the net interest margin increased 14 basis points from the prior-year quarter to 3.31%.Non-interest income was $200 million, which increased 15.6% from the year-ago level. The rise was largely driven by almost all components of fee income, which was partially offset by service charges and fees and other non-interest income. Non-interest expenses increased 7.8% year over year to $511 million. The increase was due to a rise in almost all components of non-interest expenses except for the amortization of intangible assets expense. The efficiency ratio was 61.89%, up from the year-ago period’s 60.96%. A rise in the efficiency ratio indicates a fall in profitability.FHN’s Loans Decline, Deposits IncreaseTotal period-end loans and leases, net of unearned income, were $62.45 billion, which declined marginally from the end of the previous quarter. Total period-end deposits of $66.58 billion increased 2.7%.FHN’s Credit Quality: Mixed BagNon-performing loans and leases of $578 million increased 46.7% from the prior-year period. First Horizon witnessed net charge-offs of $24 million, which decreased 74.7% year over year.Moreover, the provision for credit losses was $35 million, which plunged 68% from the year-earlier quarter. As of Sept. 30, 2024, the ratio of total allowance for loan and lease losses to loans and leases was 1.32%, up from 1.23% reported in the prior-year quarter.The allowance for loan and lease losses of $823 million rose 8.3% from the year-ago period.FHN’s Capital Ratios ImproveAs of Sept. 30, 2024, the Common Equity Tier 1 ratio was 11.2%, up from 11.1% reported at the end of the year-ago quarter.The total capital ratio was 13.9%, up from the year-ago quarter’s 13.6%. The tier 1 leverage ratio was 10.6%, up from 10.5% in the year-ago quarter.Our Viewpoint on FHNFirst Horizon’s diversified product offerings and strategic buyouts support its financials. Further, a solid capital position is an added advantage. However, a mounting expense base and declining loan balances are near-term concerns. First Horizon Corporation Price, Consensus and EPS Surprise First Horizon Corporation price-consensus-eps-surprise-chart | First Horizon Corporation QuoteFirst Horizon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings Dates & Expectations of Bank StocksBOK Financial Corporation BOKF is slated to report third-quarter 2024 results on Oct. 22. It carries a Zacks Rank #3 at present. The Zacks Consensus Estimate for BOKF’s quarterly earnings has remained unchanged at $2 over the past seven days. Cullen/Frost Bankers, Inc. CFR is scheduled to release third-quarter 2024 earnings on Oct. 31. The company carries a Zacks Rank #3 at present.The Zacks Consensus Estimate for CFR’s quarterly earnings has remained unchanged at $2.15 per share over the past seven days.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>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 BOK Financial Corporation (BOKF): Free Stock Analysis Report First Horizon Corporation (FHN): Free Stock Analysis Report Cullen/Frost Bankers, Inc. (CFR): 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