First Horizon National (FHN) posted stronger quarterly results after reducing costs.
The $25.5 billion-asset company's earnings rose 16.4% from a year earlier, to $40.7 million. Earnings per share of 17 cents were roughly in line with the average analysts' estimate, according to Bloomberg.
Net interest income fell 7.8% from a year earlier, to $156 million. The net interest margin compressed 14 basis points from the fourth quarter of 2011, to 3.09%. Noninterest income fell 19% from a year earlier, to $146.4 million.
Noninterest expense fell 13.3% from a year earlier, to $271.3 million, because of a lack of charges tied to mortgage repurchases. Still, those charges, which took place in the second quarter, contributed to a $28 million net loss for full-year 2012.
First Horizon's loan book was largely unchanged from a year earlier, to $16.4 billion.
The company's loan-loss provision rose 50% from a year earlier, to $15 million. Chargeoffs fell 73% from the fourth quarter of 2011, to $19.7 million.
"We executed on some tough actions in 2012 to position our company for long-term success, and we're energized as we enter 2013," Bryan Jordan, First Horizon's chief executive, said in a press release. "This should be a good year for us."