EX-99.1 2 c66403_ex99-1.htm

Exhibit 99.1

 

 

CONSOLIDATED SUMMARY RESULTS
Quarterly, Unaudited

(FIRST HORIZON LOGO)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2Q11 Change vs.

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands, except per share data)

 

2Q11

 

1Q11

 

4Q10

 

3Q10

 

2Q10

 

1Q11

 

2Q10

 

Income Statement Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

172,860

 

$

172,755

 

$

182,236

 

$

186,143

 

$

182,064

 

 

 

*

 

(5

)%

Noninterest income

 

 

188,771

 

 

196,744

 

 

190,534

 

 

246,762

 

 

243,862

 

 

(4

)%

 

(23

)%

Securities gains/(losses), net

 

 

1

 

 

798

 

 

15,681

 

 

(2,928

)

 

75

 

 

NM

 

 

NM

 

Total revenue

 

 

361,632

 

 

370,297

 

 

388,451

 

 

429,977

 

 

426,001

 

 

(2

)%

 

(15

)%

Noninterest expense

 

 

345,826

 

 

315,146

 

 

329,729

 

 

343,034

 

 

337,311

 

 

10

%

 

3

%

Provision for loan losses

 

 

1,000

 

 

1,000

 

 

45,000

 

 

50,000

 

 

70,000

 

 

 

*

 

(99

)%

Income before income taxes

 

 

14,806

 

 

54,151

 

 

13,722

 

 

36,943

 

 

18,690

 

 

(73

)%

 

(21

)%

Provision/(benefit) for income taxes

 

 

(4,242

)

 

12,108

 

 

(6,681

)

 

3,138

 

 

(1,659

)

 

NM

 

 

NM

 

Income from continuing operations

 

 

19,048

 

 

42,043

 

 

20,403

 

 

33,805

 

 

20,349

 

 

(55

)%

 

(6

)%

Income/(loss) from discontinued operations, net of tax

 

 

3,788

 

 

960

 

 

(3,095

)

 

(95

)

 

129

 

 

NM

 

 

NM

 

Net income

 

 

22,836

 

 

43,003

 

 

17,308

 

 

33,710

 

 

20,478

 

 

(47

)%

 

12

%

Net income attributable to noncontrolling interest

 

 

2,844

 

 

2,844

 

 

2,840

 

 

2,875

 

 

2,844

 

 

 

*

 

 

*

Net income attributable to controlling interest

 

 

19,992

 

 

40,159

 

 

14,468

 

 

30,835

 

 

17,634

 

 

(50

)%

 

13

%

Preferred stock dividends

 

 

—

 

 

—

 

 

63,154

 

 

14,960

 

 

14,938

 

 

NM

 

 

NM

 

Net income/(loss) available to common shareholders

 

$

19,992

 

$

40,159

 

$

(48,686

)

$

15,875

 

$

2,696

 

 

(50

)%

 

NM

 

Common Stock Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS from continuing operations

 

$

0.06

 

$

0.15

 

$

(0.19

)

$

0.07

 

$

0.01

 

 

(59

)%

 

NM

 

Diluted EPS

 

 

0.08

 

 

0.15

 

 

(0.20

)

 

0.07

 

 

0.01

 

 

(47

)%

 

NM

 

Diluted shares

 

 

262,756

 

 

265,556

 

 

239,095

 

 

238,867

 

 

240,968

 

 

(1

)%

 

9

%

Period-end shares outstanding

 

 

263,699

 

 

263,335

 

 

263,366

 

 

237,061

 

 

236,840

 

 

 

*

 

11

%

Cash dividends declared per share

 

$

0.01

 

$

0.01

 

 

N/A

 

 

N/A

 

 

N/A

 

 

 

 

 

 

 

Stock dividend rate declared per share

 

 

N/A

 

 

N/A

 

 

1.8122

%

 

1.6567

%

 

1.2896

%

 

 

 

 

 

 

Balance Sheet Highlights (Period-End)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, net of unearned income (Restricted - $.7 billion) (a)

 

$

16,061,646

 

$

15,972,372

 

$

16,782,572

 

$

17,059,489

 

$

17,154,050

 

 

1

%

 

(6

)%

Total deposits (Restricted - $.9 million) (a)

 

 

15,896,027

 

 

15,350,967

 

 

15,208,231

 

 

14,975,920

 

 

15,201,816

 

 

4

%

 

5

%

Total assets (Restricted - $.7 billion) (a)

 

 

25,054,066

 

 

24,438,344

 

 

24,698,952

 

 

25,384,181

 

 

26,254,226

 

 

3

%

 

(5

)%

Total liabilities (Restricted - $.7 billion) (a)

 

 

22,372,684

 

 

21,798,287

 

 

22,020,947

 

 

22,077,293

 

 

22,966,993

 

 

3

%

 

(3

)%

Total equity

 

 

2,681,382

 

 

2,640,057

 

 

2,678,005

 

 

3,306,888

 

 

3,287,233

 

 

2

%

 

(18

)%

Key Ratios & Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized) (b)

 

 

0.37

%

 

0.71

%

 

0.27

%

 

0.52

%

 

0.32

%

 

 

 

 

 

 

Return on average common equity (annualized) (c)

 

 

3.36

%

 

6.82

%

 

(8.59

)%

 

2.86

%

 

0.49

%

 

 

 

 

 

 

Net interest margin (d) (e)

 

 

3.20

%

 

3.22

%

 

3.18

%

 

3.23

%

 

3.19

%

 

 

 

 

 

 

Fee income to total revenue (f)

 

 

52

%

 

53

%

 

51

%

 

57

%

 

57

%

 

 

 

 

 

 

Efficiency ratio (g)

 

 

95.63

%

 

85.29

%

 

88.45

%

 

79.24

%

 

79.19

%

 

 

 

 

 

 

Book value per common share

 

$

9.05

 

$

8.90

 

$

9.05

 

$

9.28

 

$

9.23

 

 

 

 

 

 

 

Tangible book value per common share (e)

 

$

8.43

 

$

8.21

 

$

8.31

 

$

8.45

 

$

8.39

 

 

 

 

 

 

 

Tangible common equity to tangible assets (e)

 

 

8.93

%

 

8.91

%

 

8.93

%

 

7.96

%

 

7.63

%

 

 

 

 

 

 

Tier 1 common ratio (e) (h)

 

 

11.86

%

 

11.73

%

 

11.53

%

 

10.43

%

 

10.07

%

 

 

 

 

 

 

Adjusted tangible common equity to risk weighted assets (e) (h)

 

 

11.05

%

 

10.84

%

 

10.66

%

 

9.55

%

 

9.21

%

 

 

 

 

 

 

Full time equivalent employees

 

 

4,950

 

 

5,159

 

 

5,435

 

 

5,506

 

 

5,531

 

 

(4

)%

 

(11

)%

 

 

NM - Not meaningful

* Amount is less than one percent.

(a)

Restricted balances parenthetically presented are as of June 30, 2011.

(b)

Calculated using net income.

(c)

Calculated using net income available to common shareholders.

(d)

Net interest margin is computed using total net interest income adjusted for FTE.

(e)

Refer to the Non-GAAP to GAAP Reconciliation.

(f)

Ratio excludes securities gains/(losses).

(g)

Noninterest expense divided by total revenue excluding securities gains/(losses).

(h)

Current quarter is an estimate.

1


 

 

NON-GAAP TO GAAP RECONCILIATION

(FIRST HORIZON LOGO)

Quarterly, Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Thousands)

 

2Q11

 

1Q11

 

4Q10

 

3Q10

 

2Q10

 

Tangible Common Equity (Non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A) Total equity (GAAP)

 

$

2,681,382

 

$

2,640,057

 

$

2,678,005

 

$

3,306,888

 

$

3,287,233

 

Less: Preferred stock capital surplus - CPP

 

 

—

 

 

—

 

 

—

 

 

810,974

 

$

806,856

 

Less: Noncontrolling interest (a)

 

 

295,165

 

 

295,165

 

 

295,165

 

 

295,165

 

$

295,165

 

(B) Total common equity

 

$

2,386,217

 

$

2,344,892

 

$

2,382,840

 

$

2,200,749

 

$

2,185,212

 

Less: Intangible assets (GAAP) (b)

 

 

164,067

 

 

183,625

 

 

195,061

 

 

196,443

 

$

197,825

 

(C) Tangible common equity (Non-GAAP)

 

$

2,222,150

 

$

2,161,267

 

$

2,187,779

 

$

2,004,306

 

$

1,987,387

 

Less: Unrealized gains on AFS securities, net of tax

 

 

58,068

 

 

39,338

 

 

45,366

 

 

61,836

 

$

68,189

 

(D) Adjusted tangible common equity (Non-GAAP)

 

$

2,164,082

 

$

2,121,929

 

$

2,142,413

 

$

1,942,470

 

$

1,919,198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Assets (Non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(E) Total assets (GAAP)

 

$

25,054,066

 

$

24,438,344

 

$

24,698,952

 

$

25,384,181

 

$

26,254,226

 

Less: Intangible assets (GAAP) (b)

 

$

164,067

 

$

183,625

 

$

195,061

 

$

196,443

 

$

197,825

 

(F) Tangible assets (Non-GAAP)

 

$

24,889,999

 

$

24,254,719

 

$

24,503,891

 

$

25,187,738

 

$

26,056,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period-end Shares Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(G) Period-end shares outstanding

 

 

263,699

 

 

263,335

 

 

263,366

 

 

237,061

 

 

236,840

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Common (Non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(H) Tier 1 capital (c) (d)

 

$

2,818,534

 

$

2,790,335

 

$

2,812,471

 

$

3,526,115

 

$

3,499,759

 

Less: Preferred stock capital surplus - CPP

 

 

—

 

 

—

 

 

—

 

 

810,974

 

$

806,856

 

Less: Noncontrolling interest - FTBNA preferred stock (a) (e)

 

 

294,816

 

 

294,816

 

 

294,816

 

 

294,816

 

$

294,816

 

Less: Trust preferred (f)

 

 

200,000

 

 

200,000

 

 

200,000

 

 

300,000

 

$

300,000

 

(I) Tier 1 common (Non-GAAP)

 

$

2,323,718

 

$

2,295,519

 

$

2,317,655

 

$

2,120,325

 

$

2,098,087

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Weighted Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(J) Risk weighted assets (c) (d)

 

$

19,589,390

 

$

19,569,006

 

$

20,102,775

 

$

20,332,364

 

$

20,837,537

 

Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(C)/(F)

Tangible common equity to tangible assets (TCE/TA) (Non-GAAP)

 

 

8.93

%

 

8.91

%

 

8.93

%

 

7.96

%

 

7.63

%

(A)/(E)

Total equity to total assets (GAAP)

 

 

10.70

%

 

10.80

%

 

10.84

%

 

13.03

%

 

12.52

%

(C)/(G)

Tangible book value per common share (Non-GAAP)

 

$

8.43

 

$

8.21

 

$

8.31

 

$

8.45

 

$

8.39

 

(B)/(G)

Book value per common share (GAAP)

 

$

9.05

 

$

8.90

 

$

9.05

 

$

9.28

 

$

9.23

 

(I)/(J)

Tier 1 common ratio (Non-GAAP) (c)

 

 

11.86

%

 

11.73

%

 

11.53

%

 

10.43

%

 

10.07

%

(H)/(E)

Tier 1 capital to total assets (GAAP) (c)

 

 

11.25

%

 

11.42

%

 

11.39

%

 

13.89

%

 

13.33

%

(D)/(J)

Adjusted tangible common equity to risk weighted assets (TCE/RWA) (Non-GAAP) (c)

 

 

11.05

%

 

10.84

%

 

10.66

%

 

9.55

%

 

9.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income adjusted for impact of FTE (Non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (GAAP)

 

$

172,860

 

$

172,755

 

$

182,236

 

$

186,143

 

$

182,064

 

Fully taxable equivalent (“FTE”) adjustment

 

 

1,497

 

 

1,386

 

 

1,048

 

 

791

 

 

528

 

Net interest income adjusted for impact of FTE (Non-GAAP)

 

$

174,357

 

$

174,141

 

$

183,284

 

$

186,934

 

$

182,592

 

 

 

Certain previously reported amounts have been reclassified to agree with current presentation.

(a)

Included in total equity on the consolidated balance sheet.

(b)

Includes goodwill and other intangible assets, net of amortization.

(c)

Current quarter is an estimate.

(d)

Defined by and calculated in conformity with bank regulations.

(e)

Represents FTBNA preferred stock included in noncontrolling interest.

(f)

Included in term borrowings on the consolidated balance sheet.

2