First Tennessee Bank boosts net income, share price

First Tennessee Bank boosts net income, share price

October 17th, 2018 by Staff Report in Business Around the Region

The First Tennessee Bank building, Liberty Tower, and Republic Center are seen from a new apartment building at 728 Market Street on Thursday, Sept. 7, 2017, in Chattanooga, Tenn. The nearly-completed building will house 125 residential units.

Photo by Doug Strickland /Times Free Press.

The parent company of First Tennessee Bank, the state's biggest bank, boosted its bottom line 13 percent from a year ago in the third quarter, boosting shares of First Horizon National Corp. by 3.4 percent, or 53 cents per share, in trading Wednesday.

Adjusted earnings for First Horizon, the parent of First Tennessee, rose to 36 cents per share, in line with the analysts forecasts for the period.

Including one-time proceeds from the previously announced sale of First Horizon's Visa Class B Shares, which had a $212.9 million gain, First Horizon earned 83 cents per share in the third quarter.

"In the last decade, our company has not been stronger than it is today," said William "BJ" Losch III, executive vice president and chief financial officer for First Horizon National Corp.

Revenues were up over a year ago due to an expanded net interest margin. Efficiency ratio also rose during the quarter, signaling increased profitability. However, earnings were tampered by a substantial rise in expenses.

In Chattanooga, net interest income was up 45 percent over a year ago and net income at the Chattanooga operations of First Tennessee were 74 percent above a year ago with deposits up 38 percent.

"It's an honor for us to be number one in deposit shares in Tennessee; however, it's especially gratifying to have this honor in the Chattanooga market," said Jay Dale, market leader for First Tennessee in Chattanooga.