First Horizon National Corp.'s (FHN) fourth-quarter loss
narrowed as the regional lender set aside less money for troubled
loans and other credit measures also improved.
Loan-loss provisions declined to $45 million from $135 million a
year earlier and $50 million in the prior quarter. The net
charge-off rate fell to 2.38% from 4% and 2.63%, respectively.
Nonperforming assets, or loans that may go bad, decreased to $836.5
million from $1.05 billion and $919.2 million.
The parent of First Tennessee Bank has had improved results in
recent quarters, thanks to seven straight quarters of reducing the
amount it sets aside to cover risky loans. The lender also has
shifted its focus to retail banking and capital markets while
largely exiting the mortgage business. A number of lenders also
have had improved lending in the latest quarter, in a sign of
another possible positive trend for the sector.
First Horizon reported a loss of $48.7 million, or 20 cents a
share, compared with a prior-year loss of $70.6 million, or 30
cents a share. The latest period included $63 million in costs
related to its TARP repayment.
Revenue decreased 10% to $393.2 million, after falling 18% a
year earlier.
Analysts polled by Thomson Reuters most recently forecast a loss
of 3 cents on revenue of $424 million.
Total deposits grew 2% as total loans fell 7%.
Shares closed Thursday at $11.99 and were inactive premarket.
The stock is down 6.2% in the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com;