First Horizon reports Q4 adjusted EPS 51c, consensus 48c

Reports Q4 revenue $882M, consensus $849.8M. Net charge-offs of $26M increased $14M; nonperforming loans of $316M increased 8% linked quarter and the nonperforming loan ratio of 0.54% increased from 0.51% at September 30, 2022. ROCE of 14.4%; ROTCE of 19.1%; Adjusted ROTCE of 21.7%; CET 1 ratio of 10.2%; and total capital ratio of 13.3%. Tangible book value per share of $10.23 at December 31, 2022 compared with $9.72 at September 30, 2022 and reflected a $0.57 increase tied to adjusted NIAC and a $0.15 increase tied to MTM valuation adjustments on AFS securities and cash flow hedges. Achieved $200M of targeted annualized net cost saves target in 4Q22. TD expects the deal to close in the first half of its 2023 fiscal year, subject to the receipt of required regulatory approvals and satisfaction of other closing conditions. Continued progress on integration planning and Legal Day One readiness.