How do you interpret non-strategic — financing receivable, credit loss, expense (reversal)?

High expenses signal poor asset quality in the legacy portfolio, while reversals indicate better-than-expected recoveries.

First Horizon FHN Non-Strategic — Financing Receivable, Credit Loss, Expense (Reversal)

Discontinued — last reported Q3 '20

Similar metrics at other companies

RCSmall Business Lending — Financing Receivable, Credit Loss, Expense (Reversal)

$4.38M-47.6%

SNAFinancial services revenue — Financing Receivable And Accounts Receivable, Credit Loss Expense (Reversal)

$18.8M-1.6%

RFSegment Discontinued Operations — Provision For Loan Lease And Other Losses

$0—

CFGNon-Core — Provision (benefit) for credit losses

$4M-76.5%

WBSOperating Segments — Provision For Loan And Lease Losses

$11M+4.8%

SSBFinancial Service Product Two — Financing Receivable Excluding Accrued Interest Credit Loss Expense Reversal

-$65K-125%

Other financials

Income statement

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Revenue$862.0M+6.2%

Net income$262.0M+20.2%

EPS (diluted)$0.53+29.3%

Balance sheet

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Cash & equivalents$1.9B—

Total debt$5.5B0.0%

Total equity$9.2B+4.8%

Total assets$84.1B+3.2%

Cash flow

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Operating cash flow$278.0M-20.3%

CapEx$8.0M-11.1%

Free cash flow$270.0M-20.6%

Valuation

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Market cap$11.78B+8.9%

P/E11.5×-2.0×

P/S3.4×0.0×

Profitability

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Net margin29.6%+4.4pp

FCF margin30.4%—

Returns & leverage

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Return on equity11.5%+2.4pp

Debt / equity0.6×0.0×

Where this comes from

Reported directly by First Horizon in its filing.

Tagged under the XBRL concept us-gaap:ProvisionForLoanLossesExpensed.

The official record: First Horizon’s 10-Q, filed November 5, 2020, on SEC EDGAR. View the filing →

Questions, answered.

What does non-strategic — financing receivable, credit loss, expense (reversal) mean?: The cost or recovery of bad debts within the non-core loan portfolio.
How do you interpret non-strategic — financing receivable, credit loss, expense (reversal)?: High expenses signal poor asset quality in the legacy portfolio, while reversals indicate better-than-expected recoveries.
How does non-strategic — financing receivable, credit loss, expense (reversal) compare across companies?: Standard credit risk metric for legacy portfolios at regional and national banks.