The continued unwinding of the mortgage business by the parent company of First Tennessee Bank cost the banking firm another $200 million in the third quarter, resulting in a quarterly loss of $107.45 million, or 45 cents per share.
First Horizon Corp., the biggest banking firm in Tennessee, said today that it grew deposits more than the overall market across the state and boosted revenues by 2 percent from a year ago during the third quarter. But an agreement with Fannie Mae to resolve warranty repurchase obligations from previous mortgage loan losses offset other earnings by the bank and produced a net loss in the most recent three-month period.
Despite the one-time loss, First Horizon CEO Bryan Jordan said First Tennessee banks "are generating very good momentum growing our business and improving credit quality. In capital markets we continue to perform well in a somewhat volatile interest rate environment."
First Tennessee, the company's regional banking arm, has the largest market share in Tennesse, according to FDIC figures that were released during the third quarter. The bank's revenues increased 2 percent from the second quarter with gains in both consumer and commercial lending. But mortgage loans declined as the market softened as interest rates rose this summer, Jordan said. Net charge-offs declined 80percent year over year.