The parent companies of Chattanooga's biggest banks reported higher operating profits and beat analysts' expectations in third quarter results released today.
First Horizon Corp., the Memphis-based parent company of First Tennessee Bank which is Chattanooga's biggest bank, reported net income of in the third quarter of $67 million, or 29 cents per share, compared to $46 million, or 20 cents per share, a year ago.
The results topped Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of 22 cents per share. The bank holding company posted revenue of $288.7 million in the period, which missed Street forecasts. Eight analysts surveyed by Zacks expected $300.6 million.
First Tennessee, the regional bank, had another strong quarter, with average core deposits up 16 percent, average loans up 11 percent, net income up 7 percent and net interest income up 7 percent compared to third quarter 2014.
"We will keep our focus on investing in our people, simplifying processes, controlling costs and developing the technologies, products and services that meet our customers' banking needs," First Horizon CEO Bryan Jordan said.
Meanwhile, SunTrust Banks Inc., the Atlanta-based banking firm that has the second highest share of Chattanooga's bank deposits, said its profit fell in the third quarter because of a tax benefit that lifted the comparable quarter's earnings last year. But on an adjusted basis, SunTrust reported 23 percent profit growth.
The bank reported a profit of $537 million, down from $576 million a year earlier. On a per-share basis, earnings fell to $1 from $1.06. Excluding one-time items, however, per-share profit rose to $1 from 81 cents.
"SunTrust delivered solid earnings performance in the third quarter, driven by continued loan and deposit growth, improved efficiency, and strong asset quality trends," SunTrust CEO William H. Rogers, Jr., said in a statement. "Our fundamentals are strong and, despite the challenging operating environment, I am confident in our ability to deliver further value to our clients and shareholders as we continue to execute against our key strategies."