First Horizon Reports Strong Q4 Earnings with Record Capital Returns and Robust Credit Performance
First Horizon Bank, a leading regional bank, reported strong fourth-quarter (Q4) earnings for 2024, showcasing a robust credit performance and record capital returns to shareholders. The company's Chairman, President, and CEO, Bryan Jordan, expressed pride in the team's ability to deliver value for shareholders, clients, and communities, particularly in response to recent tragedies like the senseless act of violence in New Orleans.
In his opening remarks, Bryan Jordan highlighted the company's diversified business model, which enabled it to grow adjusted earnings per share (EPS) by $0.12 or 8% from the prior year. The bank achieved an impressive adjusted return on tangible common equity (ROTE) of 12.6%, driven by strong performance from its Banking franchise and positive trends in countercyclical businesses.
First Horizon's net interest margin remained strong at 3.35%, despite declining interest rates in the back half of the year. The company's countercyclical businesses contributed an incremental $55 million to pre-provision net revenue, demonstrating their resilience and growth potential. Notably, the bank's net charge-off ratio for the full year declined by 10 basis points from the prior year, underscoring the value of its disciplined underwriting process.
On a quarterly basis, First Horizon reported adjusted EPS of $0.43, a $0.01 increase from the prior quarter. The company's adjusted ROTE improved to 13.3%, driven by outstanding credit performance and efficient repricing efforts. Net interest income was up $2 million this quarter, as the bank successfully reduced interest-bearing deposit costs by 34 basis points.
First Horizon returned a record-breaking over $930 million of capital to shareholders through dividends and share repurchases in 2024, while maintaining robust levels of capital. This achievement reflects the company's commitment to delivering value to its shareholders and prioritizing their interests. As Bryan Jordan noted, 'We are proud of the strong results we delivered for shareholders in 2024 and excited to build upon that momentum as we enter into 2025.'
