First Horizon(US:FHN)2024-07-17 10:39Financial Performance - Second quarter 2024 net income available to common shareholders was $184 million, or earnings per share of $0.34, compared to $184 million and $0.33 in the first quarter 2024[14]. - Adjusted net income for the second quarter 2024 was $195 million, or $0.36 per share, up from $195 million or $0.35 per share in the first quarter 2024[14]. - Net income for Q2 2024 was $204 million, representing a 4% increase from Q1 2024 but a 38% decrease from Q2 2023[18]. - Net income attributable to common shareholders was $184 million, a decrease of 42% from $317 million in Q2 2023[30]. - Diluted EPS for Q2 2024 was $0.34, up 2% from $0.33 in Q1 2024[30]. - Adjusted net income available to common shareholders was $195 million, unchanged from Q1 2024 but down 24% from Q2 2023[31]. - Adjusted diluted EPS for Q2 2024 was $0.36, a 2% increase from Q1 2024 and a decrease of 9% from Q2 2023[31]. - The company reported a net loss of $(71) million in Q2 2024, an improvement of $24 million (26%) from Q1 2024, and a decrease of $68 million from Q2 2023[48]. Revenue and Income Sources - Total revenue for Q2 2024 was $815 million, a decrease of 1% from Q1 2024 and a decline of 21% from Q2 2023[18]. - Noninterest income decreased by $8 million to $186 million, with a $12 million decline in fixed income production[8]. - Total noninterest income decreased by 54% to $186 million from $400 million in Q2 2023[30]. - Total revenues for Q2 2024 decreased by $39 million (9%) compared to Q1 2024, and decreased by $172 million (129%) compared to Q2 2023[48]. - Noninterest income for Q2 2024 was $13 million, down $5 million (28%) from Q1 2024, and down $231 million (95%) from Q2 2023[48]. Interest Income and Expenses - Net interest income for the second quarter 2024 was $629 million, an increase of $4 million from the previous quarter, with a net interest margin of 3.38%, up 1 basis point[7]. - Interest income for Q2 2024 was $1,097 million, an increase of 8% compared to $1,019 million in Q2 2023[30]. - Interest expense for Q2 2024 was $464 million, a 4% increase from $448 million in Q1 2024 and a 21% decrease from $475 million in Q2 2023[38]. - The yield on total loans increased to 6.34% in Q2 2024, up from 6.28% in Q1 2024 and 6.10% in Q2 2023[38]. - The cost of total funding increased to 2.66% in Q2 2024, up from 2.59% in Q1 2024 and unchanged from 2.63% in Q2 2023[38]. Asset and Loan Management - Average loans increased to $62.0 billion, up 1% from Q1 2024 and up 4% from Q2 2023[20]. - Total loans and leases, net of unearned income, rose to $62,781 million, reflecting a 2% increase from the previous quarter and a 2% increase year-over-year[36]. - Total assets increased to $82,230 million, a 1% increase from the previous quarter and a 3% decrease compared to the same quarter last year[36]. - Total deposits decreased to $64,794 million, a 1% decline from the previous quarter and a 1% decrease year-over-year[36]. - Commercial loans increased by $1,115 million, or 2%, compared to the same quarter last year, reaching a total of $48,121 million[36]. Credit Quality and Provisioning - Provision expense increased by $5 million to $55 million, with net charge-offs of $34 million, representing 22 basis points[9]. - Nonperforming loans increased by $69 million to $574 million, with the allowance for credit losses to loans ratio slightly increasing to 1.41%[9]. - Provision for credit losses increased to $55 million in Q2 2024, up 10% from Q1 2024[31]. - Total charge-offs for 2Q24 were $49 million, a 6% increase from $46 million in 1Q24 and a 50% decrease from $104 million in 3Q23[93]. - The allowance for credit losses at the end of 2Q24 was $887 million, reflecting a 2% increase from $865 million in 1Q24 and a 7% increase from $827 million in 2Q23[93]. Capital and Shareholder Returns - The CET1 ratio decreased to 11.0% from 11.3% in the first quarter 2024, as $212 million of excess capital was returned to shareholders through share repurchases[10]. - The company repurchased 13.9 million shares of common stock in the second quarter 2024 at a weighted average price of $15.26, totaling $212 million returned to shareholders[10]. - Total shareholders' equity decreased to $8,955 million, a 2% decline from the previous quarter and a 4% decrease year-over-year[36]. - Book value per common share increased to $15.34 from $15.23 in the previous quarter[64]. - Tangible common equity for Q2 2024 is $8,234 million, a decrease of 1.5% from Q1 2024's $8,358 million[100]. Operational Efficiency - The efficiency ratio improved to 61.44% from 62.92% in Q1 2024, but worsened from 53.89% in Q2 2023[18]. - The efficiency ratio (GAAP) improved to 61.44% in Q2 2024 from 62.92% in Q1 2024, indicating enhanced operational efficiency[102]. - Adjusted efficiency ratio for noninterest expense (GAAP) was $500 million in Q2 2024, down from $515 million in Q1 2024[83].