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8-K - FIRST HORIZON NATIONAL CORPc82904_8k.htm

EX-99.1

 

CONSOLIDATED SUMMARY RESULTS                          
Quarterly, Unaudited                                
                                   
                        3Q15 Changes vs.  
(Dollars in thousands, except per share data) 3Q15   2Q15   1Q15   4Q14   3Q14   2Q15   3Q14  
Income Statement Highlights                              
Net interest income $163,562   $166,640   $156,866   $159,050   $159,541   (2) %   3 %  
Noninterest income 125,448   130,293   129,413   119,598   158,677   (4) %   (21) %  
Securities gains/(losses), net (345)   8   276   -   (862)   NM     60 %  
  Total revenue 288,665   296,941   286,555   278,648   317,356   (3) %   (9) %  
Noninterest expense 215,436   218,394   376,221   207,309   244,016   (1) %   (12) %  
Provision for loan losses 1,000   2,000   5,000   6,000   6,000   (50) %   (83) %  
      Income/(loss) before income taxes 72,229   76,547   (94,666)   65,339   67,340   (6) %   7 %  
Provision/(benefit) for income taxes 8,897   21,590   (22,261)   13,699   16,842   (59) %   (47) %  
      Net income/(loss) 63,332   54,957   (72,405)   51,640   50,498   15 %   25 %  
Net income attributable to noncontrolling interest 2,977   2,851   2,758   2,980   2,875   4 %   4 %  
Net income/(loss) attributable to controlling interest 60,355   52,106   (75,163)   48,660   47,623   16 %   27 %  
Preferred stock dividends 1,550   1,550   1,550   1,550   1,550   *     *    
  Net income/(loss) available to common shareholders $58,805   $50,556   $(76,713)   $47,110   $46,073   16 %   28 %  
Common Stock Data                              
Diluted EPS $0.25   $0.22   $(0.33)   $0.20   $0.19   14 %   32 %  
Diluted shares (thousands) 235,058   234,669   232,816   235,448   236,862   *     (1) %  
Period-end shares outstanding (thousands) 234,237   234,021   233,499   234,220   235,249   *     *    
Cash dividends declared per share $0.06   $0.06   $0.06   $0.05   $0.05   *     20 %  
Balance Sheet Highlights (Period-End)                          
Total loans, net of unearned income $16,725,492   $16,936,772   $16,732,123   $16,230,166   $15,812,017   (1) %   6 %  
Total deposits 18,865,220   18,674,473   18,638,554   18,068,939   16,144,771   1 %   17 %  
Total assets 25,387,319   25,239,767   25,715,888   25,668,187   23,982,597   1 %   6 %  
Total liabilities 22,807,074   22,721,862   23,216,631   23,086,597   21,370,783   *     7 %  
Total equity 2,580,245   2,517,905   2,499,257   2,581,590   2,611,814   2 %   (1) %  
Key Ratios & Other                              
Return on average assets (annualized) (a) 0.99 % 0.87 % (1.15) % 0.83 % 0.84 %            
Return on average common equity (annualized) (b) 10.83 % 9.56 % (14.04) % 8.27 % 8.16 %            
Return on average tangible common equity (annualized) (b) (f) 11.77 % 10.41 % (15.24) % 8.92 % 8.79 %            
Net interest margin (c) 2.85 % 2.92 % 2.74 % 2.86 % 2.97 %            
Fee income to total revenue (d) 43.41 % 43.88 % 45.21 % 42.92 % 49.86 %            
Efficiency ratio (e) 74.54 % 73.55 % NM   74.40 % 76.68 %            
Book value per common share $9.35   $9.09   $9.03   $9.35   $9.44              
Tangible book value per common share (f) $8.61   $8.35   $8.28   $8.60   $8.76              
Tangible common equity to tangible assets (f) 8.00 % 7.80 % 7.57 % 7.90 % 8.65 %            
Common equity tier 1 ratio (g) 10.71 % 10.41 % 10.30 % N/A   N/A              
Tier 1 ratio (h) 12.11 % 11.98 % 11.84 % 14.46 % 14.47 %            
NM - Not meaningful  
* Amount is less than one percent.  
(a) Calculated using net income.
(b) Calculated using net income available to common shareholders.
(c) Net interest margin is computed using net interest income adjusted to a fully taxable equivalent (“FTE”) basis assuming a statutory federal income tax rate of 35 percent and, where applicable, state income taxes.
(d) Ratio excludes securities gains/(losses).
(e) Noninterest expense divided by total revenue excluding securities gains/(losses).
(f) Refer to the Non-GAAP to GAAP Reconciliation.
(g) A measure of a company’s capital position under U.S. Basel III capital rules first applicable to FHN in 2015, which includes common equity less goodwill, other intangibles and certain other required regulatory deductions as defined in those rules. Common Equity Tier 1 capital under U.S. Basel III in 2015 is not the same as the non-regulatory Tier 1 Common capital commonly used prior to 2015; comparisons between the two are not meaningful.
(h) Ratio consisting of shareholders’ equity adjusted for certain unrealized gains/(losses) on available-for-sale securities, reduced by goodwill, certain other intangible assets, the disallowable portion of mortgage servicing rights and other disallowed assets divided by risk-adjusted assets. The components of Tier 1 capital, including the risk-adjustment of assets, changed significantly for FHN beginning in 2015 so that comparisons of a Tier 1 capital ratio after 2014 with a ratio prior to 2015 may not be meaningful.

 

   
 
FHN NON-GAAP TO GAAP RECONCILIATION                    
Quarterly, Unaudited                              
                                 
                                 
(Dollars and shares in thousands, except per share data) 3Q15     2Q15     1Q15     4Q14     3Q14    
Tangible Common Equity (Non-GAAP)                              
(A) Total equity (GAAP) $2,580,245     $2,517,905     $2,499,257     $2,581,590      $2,611,814    
Less: Noncontrolling interest (a) 295,431     295,431     295,431     295,431     295,431    
Less: Preferred stock 95,624     95,624     95,624     95,624     95,624    
(B) Total common equity $2,189,190     $2,126,850     $2,108,202     $2,190,535     $2,220,759    
Less: Intangible assets (GAAP) (b) 171,556     172,854     174,152     175,450     160,987    
(C) Tangible common equity (Non-GAAP) $2,017,634     $1,953,996     $1,934,050     $2,015,085     $2,059,772    
                                 
Tangible Assets (Non-GAAP)                              
(D) Total assets (GAAP) $25,387,319     $25,239,767     $25,715,888     $25,668,187     $23,982,597    
Less: Intangible assets (GAAP) (b) 171,556     172,854     174,152     175,450     160,987    
(E) Tangible assets (Non-GAAP) $25,215,763     $25,066,913     $25,541,736     $25,492,737     $23,821,610    
                                 
Average Tangible Common Equity (Non-GAAP)                              
(F) Average total equity (GAAP) $2,545,544     $2,511,929     $2,607,521     $2,651,729     $2,631,841    
Less: Average noncontrolling interest (a) 295,431     295,431     295,431     295,431     295,431    
Less: Average preferred stock 95,624     95,624     95,624     95,624     95,624    
(G) Total average common equity $2,154,489     $2,120,874     $2,216,466     $2,260,674     $2,240,786    
Less: Average intangible assets (GAAP) (b) 172,191     173,486     174,787     165,769     161,467    
(H) Average tangible common equity (Non-GAAP) $1,982,298     $1,947,388     $2,041,679     $2,094,905     $2,079,319    
                                 
Annualized Net Income/(Loss) Available to Common Shareholders                              
(I) Net income/(loss) available to common shareholders (annualized) $233,302     $202,780     $(311,114)     $186,904     $182,790    
                                 
Period-end Shares Outstanding                              
(J) Period-end shares outstanding 234,237     234,021     233,499     234,220     235,249    
                                 
Ratios                              
(I)/(H) Return on average tangible common equity (“ROTCE”) (Non-GAAP) 11.77 %   10.41 %   (15.24) %   8.92 %   8.79 %  
(I)/(G) Return on common equity (GAAP) 10.83 %   9.56 %   (14.04) %   8.27 %   8.16 %  
(C)/(E) Tangible common equity to tangible assets (“TCE/TA”) (Non-GAAP) 8.00 %   7.80 %   7.57 %   7.90 %   8.65 %  
(A)/(D) Total equity to total assets (GAAP) 10.16 %   9.98 %   9.72 %   10.06 %   10.89 %  
(C)/(J) Tangible book value per common share (Non-GAAP) $8.61     $8.35     $8.28     $8.60     $8.76    
(B)/(J) Book value per common share (GAAP) $9.35     $9.09     $9.03     $9.35     $9.44    
(a)    Included in Total equity on the Consolidated Balance Sheet.
(b) Includes goodwill and other intangible assets, net of amortization.