Post Earnings Coverage as First Horizon National Q1 Bottom-line Met Expectations

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Upcoming AWS Coverage on BancorpSouth Post-Earnings Results

LONDON, UK / ACCESSWIRE / April 21, 2017 / Active Wall St. announces its post-earnings coverage on First Horizon National Corp. (NYSE: FHN). The Company announced its financial results for the first quarter fiscal 2017 (Q1 FY17) on April 13, 2017. The Memphis, Tennessee-based bank’s quarterly diluted EPS surged 15% y-o-y, meeting market consensus estimates. Register with us now for your free membership at:

One of First Horizon National’s competitors within the Regional – Southeast Banks space, BancorpSouth, Inc. (NYSE: BXS), released its Q1 2017 earnings on Wednesday, April 19, after the close of the financial markets. AWS will be initiating a research report on BancorpSouth in the coming days.

Today, AWS is promoting its earnings coverage on FHN; touching on BXS Get our free coverage by signing up to:

Earnings Reviewed

During the quarter ended on March 31 2017, First Horizon National’s total revenues came in at $306.65 million compared to $306.38 million in the year ago same quarter. The Wall Street had expected the Company to report total revenues of $325.1 million for Q1 FY17.

In Q1 FY17, First Horizon National’s net interest income stood at $189.71 million versus $172.07 million in Q1 FY16. The Company attributed growth in net interest income to higher short-term rates and loan growth. However, total non-interest income fell to $116.90 million in Q1 FY17 from $132.73 million in the prior year’s same quarter. Additionally, the Company reported total non-interest expense of $222.21 million in Q1 FY17, which was 2% below the $226.93 million reported in the year ago comparable period.

The regional bank reported net income available to common shareholders of $54.02 million, or $0.23 per diluted share, in Q1 FY17, which came in above $47.81 million, or $0.20 per diluted share, in Q1 FY16. The quarterly net income numbers met analysts’ expectations of $0.23 per diluted share.

During Q1 FY17, First Horizon National reported total average loans, net of unearned income of $19.09 billion, up 9%, from $17.57 billion in Q1 FY16. The bank’s total average deposits also grew 16% to $23.48 billion in Q1 FY 17 from $20.33 billion in Q1 FY16.

Performance Metrics

In Q1 FY17, First Horizon National’s return on average assets came in at 0.82% compared to 0.79% in the previous year’s comparable period. The Company’s return on average common equity was also up to 9.40% in Q1 FY17 from 8.53% reported in the year ago same quarter. Further, the bank’s efficiency ratio was 72.47% in Q1 FY17, compared to 74.45% in Q1 FY16.

First Horizon National’s net interest margin for the reported quarter improved to 2.92% from 2.88% in Q1 FY16. Net interest spread for Q1 FY17 came in at 2.77% compared to 2.74% in prior year’s same quarter. In Q1 FY17, total earning assets grew 10% to $27.29 billion from $25.14 billion in last year’s comparable quarter. Furthermore, the Company reported loan yield of 3.78% in Q1 FY17 versus 3.57% in Q1 FY16.

As on March 31 2017, the bank’s common equity tier 1 ratio was 10.15% compared with 10.33% as on March 31 2016. During Q1 FY17, non-performing assets fell to $161.28 million, or 0.80% of total loans, from $219.61 million, or 1.20% of total loans in Q1 FY16. The Company reported allowances for loan losses of $201.97 million, or 1.06% of period end loans, compared to $204.03 million, or 1.16% of period end loans, in Q1 FY16.

Segment Performance

For the reported period, regional banking revenues grew 9% y-o-y to $252.37 million from $231.59 million in the prior year’s same quarter. The segment saw 12% y-o-y growth in net interest income, while non-interest income was down by 1% y-o-y during the reported quarter. Additionally, the segment’s net income surged 40% y-o-y to $64.58 million.

Fixed Income segment’s total revenue fell 26% y-o-y to $51.97 million. During the quarter, net interest income declined 57% y-o-y, and non-interest income was down by 24% y-o-y. Furthermore, the segment recorded net income of $2.26 million in Q1 FY17 compared to $7.27 million in Q1 FY16.

In Q1 FY17, the Corporate segment’s revenue outflow was $8.62 million compared to a revenue outflow of $8.64 million in the year ago corresponding quarter. Moreover, the segment reported net loss of $12.41 million in Q1 FY17 compared to net loss of $10.86 in Q1 FY16.

Non-Strategic business segment reported total revenue of $10.93 million in Q1 FY17 compared to $13.64 million in Q1 FY16. The segment’s net income also declined to $3.96 million in Q1 FY17 from $9.78 million in Q1 FY16.

Stock Performance

At the closing bell, on Thursday, April 20, 2017, First Horizon National’s stock rose 1.55%, ending the trading session at $18.37. A total volume of 2.01 million shares were traded at the end of the day. In the last six months and previous twelve months, shares of the Company have soared 25.71% and 28.84%, respectively. The Company’s shares are trading at a PE ratio of 19.04 and have a dividend yield of 1.96%. At Thursday’s closing price, the stock’s net capitalization stands at $4.29 billion.

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