First Horizon National Corp.Chief Executive Bryan Jordan said he feels "good" about the Memphis company's prospects for turning a profit "later this year" after its first-quarter loss narrowed on lower credit costs.
First Horizon posted a loss of $27.7 million, or 12 cents a share, Friday, compared with $82.8 million, or 37 cents per share, a year earlier.
Falling provisions — which were down 22% from the prior quarter and 65% from a year earlier — helped First Horizon post its narrowest loss in at least a year. Nonperforming assets and chargeoffs, meanwhile, were down just slightly from the end of last year.
Though things are looking better for the $26 billion-asset company on the loan-loss front, analysts said its rapidly shrinking loan portfolio could point to poor growth prospects.
Its net interest margin was flat — a disappointment given the wide margins banks should be able to book lending out cheap deposits at attractive rates. The company's balance sheet continued to shrink as loans fell 4% from the prior quarter.