First Horizon National Corp. posted a surprise second-quarter profit on sharply lower loan-loss provisions, while revenue fell less than expected.
The Tennessee-based regional bank company has shifted focus to retail banking and capital markets while largely exiting the mortgage business. Main Street banking conditions appear to be improving, as JPMorgan Chase & Co. reported Thursday such operations swung to the black in its latest quarter.
The parent of First Tennessee Bank reported a profit of $17.6 million, or a penny a share, compared with a year-earlier loss of $108.3 million, or 54 cents a share. The latest period included a $17.1 million debt-repurchase gain. Revenue dropped 11% to $430.1 million as net-interest income fell 9%.
Analysts polled by Thomson Reuters had most recently forecast a loss of 9 cents on $413 million in revenue.
Loan-loss provisions were $70 million, down from $260 million a year earlier and $105 million in the prior quarter. Net charge-offs, or loans lenders don't think are collectible, fell to 3.1% of average loans from 4.77% and 4.13%, respectively. Nonperforming assets, those near default, dropped to 4.92% from 6.15% and 5.63%.
Meanwhile, total deposits rose 1% as total loans fell 12%.
First Horizon's shares closed Thursday at $12.11 and were inactive premarket. The stock is up just 1.2% the past year.
