Boston, MA 10/22/2013 (wallstreetpr) – Despite recording loss in Q3.13 reporting, First Horizon National Corporation (NYSE:FHN) has adequate strengths to propel it up. The bank holdings strengthening of its Tennessee banking franchise has potential for long-term profitability. The bank’s focus on repurchase obligations and buybacks is also an incubator for better performance in the periods ahead. Also, FHN has sound cost controls which make enough business sense in this low interest rate environment.
Possible drags for the company are issues such as the tepid economic recovery and increasingly stringent regulatory issues. However, the FHN looks prepared to successfully get over these challenges and utilize the potentials so as to put good money into the hands of investors in its future reporting.
As for the latest reporting, the bank reported in the red with more than $107 million in loss. The company announced Friday that this loss was occasioned in part by its addition of $200 million to the mortgage repurchase reserve.
Last year, in a comparable quarter, the bank holding company reported net income of $25.8 million, representing around $0.10 per share. This time around, the loss per share is $0.45. This fell short of analysts’ expectations for the company which was $0.18 earning per share.
The Memphis-based bank holding company noted higher non-interest expenses for the three months trading which climbed to $433.5 million, up from $263.1 million in the previous year. However, this quarter’s loan losses hit $10 million low compared to $40 in Q3.12.
In full view, the company had $309.3 million in revenue for Q3.13, against $337 million for Q3.12. However, this Q3.13 revenue exceeded analysts’ expectations which stood at $307.14 million. In this latest revenue reported, non-interest income accounted for $150.5 million while net interest income accounted for $158.8 million. In the prior year, non-interest income and net interest income accounted for $163.5 million and 173.4 million respectively.
The bank has a market cap of $2.65 billion as of Friday, October 18. It closed the previous week down by 3.76% to settle at $11.01.
