- First Horizon Corporation FHN reported first-quarter 2023 revenues of $859.0 million, up 21% Y/Y, which missed the consensus of $879.2 million.
- Net interest income increased to $688 million from $479 million, reflecting higher rates and loan balances. Net interest margin came in at 3.87% in Q1 compared to 2.37% a year ago.
- Noninterest expense declined 3% y/y to $478 million.
- The provision for credit losses was $50 million against a benefit of $40 million in the prior-year quarter, reflecting the impact of the challenging macroeconomic outlook.
- Adjusted net income increased 23% Y/Y to $259 million, with adjusted EPS of $0.45 coming below the consensus of $0.47.
- The adjusted efficiency ratio was 52.95%, down from the year-ago period's 64.64%.
- Average loan and lease increased 7% Y/Y to $58.1 billion, with non-performing loans and leases rising to $424 million from $332 million in the prior-year period.
- Average deposits declined to $62.2 billion from $74.2 billion a year ago, with decreasing noninterest bearing deposits.
- Tier 1 leverage ratio was 10.7%, up from 8.8% in the prior year. As of March 31, 2023, Common Equity Tier 1 ratio was 10.4%, up from 10.0% in Q1 2022.
- "Despite ongoing macroeconomic uncertainty, we continue to grow deep client relationships across our 12-state footprint and in our specialty businesses.” stated Bryan Jordan, Chairman, President and CEO.
- Price Action: FHN shares closed lower by 1.02% at $18.35 on Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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