First Horizon National in Memphis, Tenn., reports solid quarterly results on the strength of revenue growth.
The $27.5 billion-asset company reported that its second-quarter profit rose 12% from a year earlier to $56.5 million. Earnings per share of 24 cents beat the average estimate of analysts polled by Bloomberg by a penny.
Revenue increased 8% from a year earlier to $322 million.
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Loans tied to franchises were often an area of concern for banks before the financial crisis. Industry growth, improved credit metrics and a need to diversify commercial loan portfolios are prompting several banks to take a second look at the business.
July 14 -
The $25 billion-asset subsidiary of First Horizon National said in a press release Wednesday that Louis Allen, executive vice president and manager of commercial banking for the bank's west Tennessee region, will be promoted to regional president June 30.
May 25 -
The Memphis, Tenn., company's forecast for the remainder of the year calls for cost saves from a branch-reduction effort that's gaining momentum as online and mobile banking grow and monthly visits to branches plummet.
April 15
"Our performance remained strong in the second quarter, with good numbers across the board," Bryan Jordan, First Horizon's chairman and chief executive, said in a press release Friday. "The customer-focused work of our people continues to drive strong loan growth, deposit growth and revenue growth. It's rewarding to see that work paying off quarter after quarter."
Net interest income increased 6% to $176 million. First Horizon posted double-digit increases in loans, which totaled $18.6 billion, and deposits, which reached $20.6 billion. The net interest margin was flat at 2.92%.
Noninterest income rose 12% to $145 million. Noninterest expense increased 4% to $227 million, which included a $26 million litigation accrual.
Asset quality improved. Net chargeoffs fell 11% to $8 million. Nonperforming loans totaled $176.7 million, or 0.95% of total loans.
First Horizon's
