Solid Revenue Lifts First Horizon's Results

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First Horizon National in Memphis, Tenn., reports solid quarterly results on the strength of revenue growth.

The $27.5 billion-asset company reported that its second-quarter profit rose 12% from a year earlier to $56.5 million. Earnings per share of 24 cents beat the average estimate of analysts polled by Bloomberg by a penny.

Revenue increased 8% from a year earlier to $322 million.

"Our performance remained strong in the second quarter, with good numbers across the board," Bryan Jordan, First Horizon's chairman and chief executive, said in a press release Friday. "The customer-focused work of our people continues to drive strong loan growth, deposit growth and revenue growth. It's rewarding to see that work paying off quarter after quarter."

Net interest income increased 6% to $176 million. First Horizon posted double-digit increases in loans, which totaled $18.6 billion, and deposits, which reached $20.6 billion. The net interest margin was flat at 2.92%.

Noninterest income rose 12% to $145 million. Noninterest expense increased 4% to $227 million, which included a $26 million litigation accrual.

Asset quality improved. Net chargeoffs fell 11% to $8 million. Nonperforming loans totaled $176.7 million, or 0.95% of total loans.

First Horizon's pending acquisition of $637 million of restaurant franchise loans from GE Capital was not reflected in its quarter results, though the company revealed that about two-thirds of the portfolio involves loans to headline names in the food industry such as Taco Bell, Wendy's, Hardee's, Burger King and Applebee's. The loan acquisition, announced June 27, is expected to close later this quarter.

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