First Horizon Corporation, a financial services company, has reported strong first quarter 2024 results, with net income available to common shareholders of $184 million or earnings per share of $0.33. This represents a 9% increase over the prior quarter, where net income available to common shareholders was $175 million or earnings per share of $0.31.
The company's adjusted net income available to common shareholders for the first quarter of 2024 was $195 million or $0.35 per share, up from $178 million or $0.32 per share in the fourth quarter of 2023, marking a 10% increase.
First Horizon's return on tangible common equity (ROTCE) for the first quarter of 2024 was 11.0%, with adjusted ROTCE at 11.6%. This is a notable improvement from the fourth quarter of 2023, where ROTCE was 10.9% and adjusted ROTCE was 11.1%.
The net interest income for the first quarter of 2024 was $625 million, showing an increase of $8 million from the prior quarter. The net interest margin also improved by 10 basis points to 3.37% due to the benefit of loan and deposit repricing.
Noninterest income for the first quarter of 2024 was $194 million, representing an $11 million increase from the prior quarter. Adjusted noninterest income of $194 million increased by $15 million, primarily driven by higher fixed income production.
Noninterest expense decreased by $57 million to $515 million in the first quarter of 2024, compared to the fourth quarter of 2023. Adjusted noninterest expense decreased by $2 million, attributed to a reduction in outside services and an increase in personnel expense.
The company's average loans and lease balances remained relatively flat compared to the prior quarter, but period-end loans and leases increased by $0.5 billion from the fourth quarter of 2023.
First Horizon's provision expense, net charge-offs, and nonperforming loans showed stability compared to the prior quarter, indicating stable credit performance.
The company's capital ratios showed a slight decrease, with the common equity tier 1 ratio at 11.3% and total capital ratio at 13.9% in the first quarter of 2024, down from 11.4% and 14.0%, respectively, in the fourth quarter of 2023.
The effective tax rate for the first quarter of 2024 was 22.5%, compared with -6.2% in the fourth quarter of 2023. On an adjusted basis, the effective tax rate for the first quarter of 2024 was 22.5%, slightly higher than 21.7% in the fourth quarter of 2023.
The market has reacted to these announcements by moving the company's shares 1.3% to a price of $14.1. If you want to know more, read the company's complete 8-K report here.
