Earnings per share grew 22 percent from last quarter at First Horizon National Corp. (NYSE:FHN) – the parent company of First Tennessee Bank - to $0.22 in the second quarter from first quarter's adjusted EPS of $0.181 – driven by growth in loans, deposits and revenue at its First Tennessee regional bank.
"Over the past few quarters we have seen our momentum build in the local communities we serve. Our bankers continue to build relationships with new and existing customers to support that growing momentum, particularly in Nashville, Chattanooga and the Carolinas," said First Horizon Chairman and CEO Bryan Jordan. "Our results reflect the hard work of our team and the strength of our franchise."
Financial highlights
- Net income available to common shareholders for the second quarter was $51 million, or $0.22 per diluted share. A litigation charge related to the mortgage business the company sold in 2008 resulted in a $162.5 million pre-tax charge in the first quarter, which led to a net loss available to common shareholders of $76.7 million, or $0.33 per diluted share. Excluding the litigation charge, net income available to common shareholders in the first quarter would have been $41.8 million1, or $0.181 per diluted share.
- First Tennessee, the regional bank, had a strong quarter, with pre-provision net revenue (PPNR) up 7 percent year over year. Year over year, average core deposits were up 13 percent and loans were up 16 percent, led by commercial loans, loans to mortgage companies and asset-based lending. Noninterest income grew 10 percent from first to second quarter, driven by fees from deposits, brokerage and trusts.
- FTN Financial, the fixed income group, increased fixed income product average daily revenue 14 percent year over year.
- Asset quality remains favorable. Non-performing loans were down 30 percent and net charge-offs were steady year over year.