First Horizon, Regions boosted earnings last year

The parent companies of two of Chattanooga’s biggest banks both boosted their profits last year despite the challenges presented by the COVID-19 pandemic and the low-interest-rate environment.

Tennessee’s biggest bank, First Horizon, reported Thursday higher earnings in both the fourth quarter and all of 2021 compared with the previous year when First Horizon incurred significant merger expenses related to First Horizon’s purchase in 2020 of Iberia Bank, the biggest bank in Louisiana. The Memphis-based First Horizon Corp. reported 2021 net income of $962 million, or $1.74 per share, up from $822 million, or $1.89 per share, in 2020.

First Horizon’s fourth-quarter adjusted earnings per share of 48 cents were 10 cents a share better than what analysts had forecast for the period, according to Zacks Investment Research.

The Birmingham, Alabama-based Regions Financial Corp, which operates the third biggest bank in Chattanooga, said Thursday it earned net income of $2.4 billion, or $2.49 per share, for all of 2021. That was more than double the $991 million, or $1.03 per share, that Regions earned in 2020.

Despite the yearly gain, however, Regions’ fourth-quarter results did not meet Wall Street expectations. Regions’ adjusted earnings per share in the fourth quarter were 44 cents per share, which was less than the average predicted earnings of 49 cents per share among the 30 analysts surveyed by Zacks Investment Research.

Brian Jordan, president and CEO of First Horizon, said the income and revenue gains for First Horizon last year “reflect the underlying momentum in our balanced business model and attractive geographic footprint” and offset a drop in fee income.

“Our continued focus on execution drove improved net interest income, further merger savings and revenue synergies and improved asset quality that more than offset the impact of expected fee income headwinds,” Jordan said.

In Chattanooga, First Horizon Market President Jay Dale said “locally, we’re seeing strong loan demand driven by accelerating local economic growth” as businesses recover and bounce back from the pandemic.

At Regions Bank, retail checking account growth exceeded the previous three years combined and the bank had its lowest net charge-off for bad loans since 2006.

“While challenges from the pandemic remain, we see optimism among our clients and strength in our markets, and we are well positioned to generate further growth as we execute our strategic plan,” said John Turner, president and CEO of Regions Financial Corp.