First Horizon National in Memphis, Tenn., returned to profitability after reporting a staggering first-quarter loss tied to a mortgage settlement.
The $25.2 billion-asset parent company reported a second-quarter profit of $50.6 million, compared to a $76.7 million loss in the first quarter and earnings of $77.5 million a year earlier. Earnings per share of 22 cents beat the average estimate of analysts polled by Bloomberg by 2 cents.
Net interest income rose 6% from a year earlier, to $166.6 million. Total loans increased by 9%, to $16.8 billion, while the net interest margin compressed by 5 basis points, to 2.92%.
Noninterest income rose by 0.7%, to $130.3 million, led by gains in the companys fixed-income business and higher ATM and interchange fees.
Noninterest expenses increased 34%, to $218.4 million, as employee compensation and professional fees rose.