First Horizon(US:FHN)2025-05-07 20:16Financial Performance - Net income for Q1 2025 rose to $222 million, up 12.7% from $197 million in Q1 2024[26]. - Basic and diluted earnings per common share increased to $0.41 in Q1 2025, compared to $0.33 in Q1 2024, representing a 24.2% increase[24]. - Comprehensive income for Q1 2025 was $367 million, significantly higher than $114 million in Q1 2024[26]. - Total revenues for the consolidated entity were $812 million in Q1 2025, compared to $819 million in Q1 2024, reflecting a decrease of approximately 0.9%[176]. - Net income for the consolidated entity was $222 million in Q1 2025, compared to $197 million in Q1 2024, showing an increase of approximately 12.7%[176]. Asset and Liability Management - Total assets decreased to $81,491 million as of March 31, 2025, from $82,152 million at the end of 2024, representing a decline of 0.8%[21]. - Total deposits decreased to $64,208 million, a decline of 2.1% from $65,581 million[21]. - Total equity decreased to $9,044 million from $9,111 million, a decline of 0.7%[21]. - Cash and cash equivalents at the end of the period rose to $1,643 million from $1,566 million year-over-year[34]. - The total balance of pension and post-retirement plans as of March 31, 2025, was $(983) million, a decrease from $(1,271) million as of March 31, 2024[160]. Loan and Lease Performance - Net loans and leases amounted to $61,393 million, down from $61,750 million, indicating a decrease of 0.6%[21]. - The total amortized cost basis of loans and leases was $62,215 million as of March 31, 2025, a decrease from $62,565 million as of December 31, 2024[61]. - The provision for loan and lease losses for the three months ended March 31, 2025, was $36 million, compared to $54 million for the same period in 2024[112]. - The total charge-offs for the three months ended March 31, 2025, amounted to $41 million, while recoveries were $12 million, resulting in a net charge-off of $29 million[112]. - The company modified loans for troubled borrowers, including interest rate reductions and maturity date extensions, to align with their repayment capabilities[90]. Income and Expense Analysis - Total interest income for Q1 2025 was $1,014 million, a decrease of 5.5% from $1,073 million in Q1 2024[23]. - Net interest income after provision for credit losses increased to $591 million in Q1 2025, compared to $575 million in Q1 2024, reflecting a 2.8% growth[23]. - Total noninterest income decreased to $181 million in Q1 2025, down 6.7% from $194 million in Q1 2024[23]. - Total noninterest expense decreased to $487 million in Q1 2025, a reduction of 5.4% from $515 million in Q1 2024[23]. - The provision for credit losses was $40 million in Q1 2025, compared to $50 million in Q1 2024, indicating a decrease of 20%[176]. Capital and Equity Management - The allowance for loan and lease losses increased to $822 million, up from $815 million, reflecting a rise of 0.9%[21]. - Retained earnings increased to $4,517 million, up from $4,382 million, showing a growth of 3.1%[21]. - Preferred stock issued remained at 16,750 shares, with a total value of $426 million[21]. - The company reported a total of $438 million in non-cumulative perpetual preferred stock as of March 31, 2025, slightly up from $426 million at the end of 2024[133]. - The Class A Preferred Stock recognized as noncontrolling interest on the Consolidated Balance Sheets was $295 million as of March 31, 2025, consistent with the previous reporting period[135]. Market and Economic Conditions - The company is focused on enhancing its capital position through non-GAAP measures such as tangible common equity to tangible assets[17]. - Future strategies include adapting products and services to meet changing industry standards and client preferences[13]. - The company utilized multiple macroeconomic scenarios to estimate credit losses, with a focus on the Moody's baseline scenario as the base case[110]. - The allowance for credit losses (ACL) increased to $905 million as of March 31, 2025, up from $866 million as of March 31, 2024, reflecting concerns over potential economic instability[112]. - The company plans to continue utilizing FICO scores and other attributes to assess credit quality, enhancing risk management strategies moving forward[71].