First Horizon National (FHN) in Memphis, Tenn., nearly doubled profits last quarter thanks to lower expenses and credit-quality improvements.
The $24.2 billion-asset company reported net income available to shareholders of $76.8 million, an 88% increase from a year earlier. It earned 32 cents per share.
Noninterest expenses dropped 27%, to $165.3 million, as the company reached an agreement with insurance companies to recover $47.1 million related to litigation losses.
Credit quality issues that have dogged the bank also improved. Nonperforming assets fell 21%, to $339.6 million. And provisions for loan losses fell 67%, to $5 million.
Loans rose 4%, to $15.8 million from the previous quarter on the strength of asset-based lending and commercial real estate.
However, revenue dropped 6%, to $283.7 million, on weaker net interest and noninterest income.
Net interest income was down 2%, to $156.8 million.Noninterest income fell 10%, to $128.9 million, driven by a decline in capital markets fixed-income sales revenue.
First Horizon shares had jumped 2.66%, to $11.78, in trading early Friday afternoon.