

First Horizon National (FHN) reported its fourth-quarter (Q4) 2024 earnings, which included an earnings surprise, significantly impacted its annual performance, as reflected in key metrics such as net income, revenue, and return metrics. Here's an analysis of the impact:
- Earnings Surprise and Quarterly Performance:
- FHN reported an adjusted net income of $228 million for Q4 2024, reflecting a 2% increase from the prior quarter1.
- The company's third-quarter (Q3) 2024 results showed an adjusted earnings per share (EPS) of $0.42, surpassing the Zacks Consensus Estimate of $0.38 by 11.8%, and a year-over-year increase of 55.6%2.
- Annual Net Income and EPS:
- For the full year 2024, FHN reported a net income available to common shareholders (NIAC) of $738 million or EPS of $1.3613.
- In 2023, the NIAC was $865 million or EPS of $1.5414.
- Revenue and Growth Rate:
- FHN's annual revenue for 2023 was $5.027 billion, with a 43.71% increase from 20225.
- The revenue for 2022 was $3.498 billion, reflecting an 8.16% increase from 20215.
- Return Metrics and Efficiency:
- The company's Return on Assets (ROA) and Return on Equity (ROE) were strong, with ROA at 1.47% and ROE at 14.28% as of December 31, 20241.
- The efficiency ratio stood at 61.89%, indicating a slight deterioration from the previous year's 60.96%2.
- Loan Growth and Asset Quality:
- Total period-end loans and leases grew by $3 billion or 5% in 20234.
- Non-performing loans increased to $578 million2.
In conclusion, FHN's Q4 earnings surprise, characterized by higher-than-expected net interest income and non-interest income, significantly bolstered its annual performance. This was evident in the increased net income and EPS for 2024, along with robust revenue growth and improvements in return metrics. However, the efficiency ratio saw a slight decline, and the company faced challenges such as rising expenses and loan balance reductions. Overall, FHN's strong quarterly performance in Q4 2024 contributed positively to its annual financial results.
