First Tennessee earnings rise above Wall Street projections

First Tennessee bank logo
First Tennessee bank logo

The parent company of First Tennessee Bank boosted its second quarter earnings by 61 percent from a year ago, increasing net income for common shareholders to $90.8 million, or 39 cents per share.

First Horizon National Corp., the biggest banking firm in Chattanooga and across Tennessee, said earnings, adjusted for non-recurring gains, came to 27 cents per share.

The results topped Wall Street expectations and the company's stock is trading higher today. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 26 cents per share.

"Our bankers are expanding relationships and attracting new business in our growth markets in Middle Tennessee and the Mid-Atlantic as well as in established markets like East and West Tennessee," First Horizon CEO Bryan Jordan said in a statement today.

First Tennessee said its average loans volume was up 11 percent, deposits were up 10 percent, revenue was up 11 percent, net interest income was up 13 percent and fee income was up 6 percent in the quarter.

First Horizon Corp. plans to complete is previously announced $2.2 billion acquisition of the Capital Bank Financial Corp. in North Carolina in the fourth quarter, pending shareholder approval.

The combined bank will be the fourth-largest regional bank in the Southeast with $40 billion in total assets.

"Our planned merger with Capital Bank will help us more quickly achieve critical financial targets, and teams from both sides are preparing us to leverage the strengths of both banks, capitalize on growth opportunities in attractive, high-growth Southeast markets and enhance our strong presence in Tennessee," Jordan said.

First Horizon shares have declined nearly 12 percent since the beginning of the year. But the stock is still up 23 percent in the past 12 months.

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