First Horizon Corporation (NYSE: FHN) is a regional financial services firm based in Memphis, TN, offering a variety of banking services across twelve southern U.S. states. For the full year 2024, the company reported net income available to common shareholders of $738 million or earnings per share (EPS) of $1.36, a decline from $865 million or EPS of $1.54 in 2023. Fourth quarter 2024 results showed net income available to common shareholders of $158 million or EPS of $0.29, declining from $213 million or EPS of $0.40 in the third quarter of 2024.

The company’s performance exhibited a decline, with total revenue for 2024 decreasing to $3.19 billion from $3.47 billion in 2023, an 8% reduction. Noninterest income also dropped significantly, down to $679 million in 2024 from $927 million in the previous year, a 27% decrease, partly due to the absence of a $225 million merger termination fee that benefitted 2023 results. Despite this, adjusted noninterest income rose to $771 million in 2024, an increase of 10% from 2023.

For fourth quarter 2024, interest income was $1.071 billion while interest expense was $438 million, resulting in net interest income (NII) of $630 million. NII for the year was $2.51 billion, slightly down from $2.54 billion in 2023. The net interest margin (NIM) during the fourth quarter expanded 2 basis points to 3.33%. The average net interest margin for the full year decreased by 7 basis points to 3.35%.

Total noninterest expenses in 2024 amounted to $2.04 billion, a 2% decline year-over-year. Adjusted total noninterest expense increased to $1.998 billion, reflecting a rise of 6% from 2023, driven mainly by increased incentives linked to higher commission-based revenues.

Provision for credit losses for the fourth quarter was $10 million, a substantial reduction from $35 million in the previous quarter. Total net charge-offs for 2024 were reported at $112 million, down from $170 million in 2023, translating to a net charge-off ratio of 0.18%. The allowance for credit losses to loans ratio slightly increased to 1.43%.

Capital ratios showed that the Common Equity Tier 1 (CET1) ratio stood at 11.2% at year-end 2024, down from 11.4% in 2023. First Horizon returned $604 million to shareholders through share repurchases in 2024, at an average price of $15.98 per share, while maintaining a commitment to prudent financial management despite broader economic pressures.

Looking ahead, guidance changes indicate expectations for continued revenue challenges impacting net interest income, and analysts are monitoring the impacts of potential interest rate changes. Over 56% of loans are indexed to short-term rates, presenting both risks and opportunities as market conditions evolve.