MEMPHIS, Tenn., April 17, 2014 (GLOBE NEWSWIRE) -- The focus on driving profitability continued in first quarter 2014 as First Horizon National Corp. (NYSE:FHN) celebrates the 150 th anniversary of its founding during the Civil War. First quarter's consolidated net income available to common shareholders was $45 million, or $0.19 per share.
First Horizon's core business of regional banking through First Tennessee and fixed income through FTN Financial generated solid performance. The company continued to invest in those businesses while controlling costs and improving productivity and efficiency. The company also continued to unwind from the mortgage business it sold in 2008, with key mortgage loan repurchase settlements reached over the past few months.
"Our people are focused every day on meeting our customers' financial services needs with a differentiated experience, and because of that we're earning new business and expanding our relationships with customers at First Tennessee and FTN Financial," said Bryan Jordan, First Horizon's chairman and CEO. "We're entering new markets and enhancing specialty businesses that are giving us opportunities to grow profitably over time. We're reducing the overhang of our former mortgage business. In short, we're preparing our company for our next 150 years."Financial highlights
- The company continues to invest in areas that create the most value for customers while reducing costs in other areas. Expenses were down 8 percent from first quarter 2013 to first quarter 2014.
- In the regional bank average core deposits were up 2 percent from the same quarter in 2013. Lending increased, too, in specialty lending areas and growth markets, with asset-based lending up 12 percent, Middle Tennessee up 6 percent, commercial real estate up 4 percent and the Mid-Atlantic region – North Carolina, South Carolina, Virginia and North Florida – up 4 percent from first quarter 2013 to first quarter 2014. As the mortgage market has slowed, loans to mortgage companies fell from last quarter.
- The fixed income group remained a high-return business and an important part of First Horizon's business mix, making significant contributions to overall fee income in spite of uncertain market conditions that led to lower sales volumes.
- First quarter's results included $20 million in servicing income associated with a previously announced mortgage servicing sale.
- Asset quality trends remain strong, with net charge-offs down 38 percent from first quarter 2013 to first quarter 2014.
- Capital ratios remain strong, with estimated Tier 1 capital at 14 percent at the end of first quarter 2014.
|FHN CONSOLIDATED SUMMARY RESULTS|
|1Q14 Changes vs.|
|(Dollars in thousands, except per share data)||1Q14||4Q13||1Q13||4Q13||1Q13|
|Income Statement Highlights|
|Net interest income||$ 152,359||$ 157,135||$ 161,382||(3)%||(6)%|
|Securities gains/(losses), net||5,657||2,183||24||NM||NM|
|Provision for loan losses||10,000||15,000||15,000||(33)%||(33)%|
|Income/(loss) before income taxes||67,875||20,081||62,269||NM||9%|
|Provision/(benefit) for income taxes||18,645||(33,813)||17,730||NM||5%|
|Income/(loss) from continuing operations||49,230||53,894||44,539||(9)%||11%|
|Income/(loss) from discontinued operations, net of tax||--||(6)||430||NM||NM|
|Net income attributable to noncontrolling interest||2,813||2,934||2,813||(4)%||*|
|Net income/(loss) attributable to controlling interest||46,417||50,954||42,156||(9)%||10%|
|Preferred stock dividends||1,550||1,550||1,188||*||30%|
|Net income/(loss) available to common shareholders||$ 44,867||$ 49,404||$ 40,968||(9)%||10%|
|Common Stock Data|
|Diluted EPS||$ 0.19||$ 0.21||$ 0.17||(10)%||12%|
|Diluted shares (thousands)||237,401||236,753||242,799||*||(2)%|
|Period-end shares outstanding (thousands)||236,586||236,370||241,225||*||(2)%|
|Balance Sheet Highlights (Period-End)|
|Total loans, net of unearned income||$ 15,119,461||$ 15,389,074||$ 15,889,670||(2)%||(5)%|
|Asset Quality Highlights|
|Allowance for loan losses||$ 247,246||$ 253,809||$ 265,218||(3)%||(7)%|
|Allowance / period-end loans||1.64%||1.65%||1.67%|
|Net charge-offs||$ 16,563||$ 16,901||$ 26,745||(2)%||(38)%|
|Net charge-offs (annualized) / average loans||0.45%||0.44%||0.67%|
|Non-performing assets (NPA)||$ 345,520||$ 361,918||$ 349,278||(5)%||(1)%|
|NPA % (a)||1.87%||1.95%||1.81%|
|Key Ratios & Other|
|Return on average assets (annualized) (b)||0.82%||0.90%||0.73%|
|Return on average common equity (annualized) (c)||8.30%||9.42%||7.48%|
|Net interest margin (d)||2.88%||2.98%||2.95%|
|Efficiency ratio (e)||75.30%||88.66%||75.69%|
|Tier 1 ratio (f)||14.20%||13.87%||13.56%|
|Market capitalization (millions)||$ 2,919.5||$ 2,753.7||$ 2,576.3|
|NM - Not meaningful|
|* Amount is less than one percent.|
|Certain previously reported amounts have been reclassified to agree with current presentation.|
|(a) NPAs related to the loan portfolio over period-end loans plus foreclosed real estate and other assets.|
|(b) Calculated using net income.|
|(c) Calculated using net income available to common shareholders.|
|(d) Net interest margin is computed using net interest income adjusted to a fully taxable equivalent ("FTE") basis. Refer to the Non-GAAP to GAAP Reconciliation.|
|(e) Noninterest expense divided by total revenue excluding securities gains/(losses).|
|(f) Current quarter is an estimate.|
|NON-GAAP to GAAP Reconciliation|
|(Dollars in Thousands) (Unaudited)||1Q14||4Q13||1Q13|
|Net interest income adjusted for impact of fully taxable equivalent ("FTE") (Non-GAAP)|
|Net interest income (GAAP)||$152,359||$157,135||$161,382|
|Net interest income adjusted for impact of FTE (Non-GAAP)||$154,346||$159,179||$163,169|
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