First Horizon National Corp. (FHN) reported its second-quarter
profit more than doubled as loan-loss provisions declined sharply
from a year ago, but revenue slumped on a drop in total loans.
The parent of First Tennessee Bank has seen improving results
recently as credit measures strengthen and lower reserves are
needed for troubled loans. First Horizon has in recent years
sharpened its focus on retail banking and capital markets, while
largely exiting the mortgage business.
Loan-loss provisions were unchanged from the prior quarter at $1
million, though down sharply from $70 million a year earlier.
Net charge-offs, or loans lenders don't think are collectible,
were 1.67% of average loans, down from 3.11% a year earlier and
1.93% last quarter. Nonperforming assets, those near default,
dropped to 4.09%, from 4.92% and 4.55%, respectively.
First Horizon reported a profit of $42.6 million, or 16 cents a
share, up from a prior-year profit of $17.6 million. Earnings of a
penny a share in the year-earlier period reflected payment of
preferred dividends.
Revenue, as a combination of net interest income and
non-interest income, declined 15% to $361.6 million.
Analysts polled by Thomson Reuters recently estimated a
per-share profit of 11 cents on $364 million in revenue.
Total deposits rose 5%, while total loans fell 6%.
First Horizon shares closed Thursday at $9.48 and were inactive
in premarket trade. The stock is down 20% since the start of the
year.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207; mia.lamar@dowjones.com