First Horizon Corporation (NYSE: FHN) has reported its full year 2024 financial results, with net income available to common shareholders (NIAC) at $738 million and earnings per share (EPS) at $1.36, compared to full year 2023 NIAC of $865 million and EPS of $1.54. Adjusted NIAC increased by 5% to $843 million or $1.55 per share, driven by exemplary credit performance, increased fee income generation, and a strong margin.
In the fourth quarter of 2024, net income available to common shareholders was $158 million or EPS of $0.29, compared to the third quarter 2024 NIAC of $213 million or EPS of $0.40. Adjusted fourth quarter 2024 NIAC of $228 million or $0.43 per share increased from $224 million or $0.42 per share in the third quarter 2024.
The net interest margin declined modestly to 3.35% in 2024, down 7 basis points from the prior year, while noninterest income decreased by $248 million, largely driven by a $225 million merger termination fee in 2023. Adjusted noninterest income of $771 million increased $72 million as fixed income revenues increased by $54 million and mortgage banking revenues improved by $12 million.
Noninterest expense decreased by $45 million, including $37 million of notable items in 2024 and $196 million in 2023. Adjusted noninterest expense of $2.0 billion increased $114 million, driven by a $37 million increase in incentives on higher commission-based revenue, as well as strategic investments in personnel and technology.
Average loans and lease balances increased by $1.8 billion, with average deposits increasing by 2%. Asset quality improved, with provision expense decreasing from $260 million in 2023 to $150 million in 2024. Net charge-offs were $112 million or 0.18%, compared to $170 million or 0.28% in 2023.
The effective tax rate for 2024 was 21.0% compared with 18.8% in 2023. On an adjusted basis, the effective tax rate was 21.4% in 2024 and 21.8% in 2023.
In the fourth quarter of 2024, net interest income (FTE) increased by $2 million to $634 million, and net interest margin increased by 2 basis points to 3.33%. Noninterest income decreased by $101 million to $99 million, driven by a $91 million notable loss associated with an opportunistic restructuring of a portion of the securities portfolio.
Noninterest expense decreased by $3 million from the prior quarter, while provision expense decreased by $25 million. The effective tax rate and the adjusted effective tax rate for the fourth quarter of 2024 were 19.3% and 21.0%, respectively, compared with 20.6% and 20.8% in the third quarter of 2024.
The market has reacted to these announcements by moving the company's shares -0.5% to a price of $21.29. For more information, read the company's full 8-K submission here.
