Special charges cut earnings at 2 Tenn. banks.

Two Tennessee banks reported third quarter earnings Friday that were down from a year-ago due to special, onetime items.

First American Corp., Nashville, earned $22.7 million, 18% under the year-ago quarter.

The drop came from a $10million negative loan-loss provision taken by the bank in the third quarter of 1993, when funds were removed from the reserve and applied to the bottom line.

In this year's third quarter, by contrast. $7.4 billion-asset First American took no loanIloss provision at all, which had a neutral effect on profits. First American's 87 cents in earnings per-share came in line with consensus estimates.

Memphis-based Union Planters Corp., with $7.5 billion in assets, reported net income of $15.8 million, or 51 cents a share, down 12% from $18 million in the year-ago quarter. The decline was caused by $4.9 million of after-tax securities losses related to bond portfolio restructuring and $1.5 million in expense, also after tax. related to recent acquisitions.

Union Planters had previously announced it would take both changes.

Partially offsetting these charges was a $1.3 million after tax favorable litigation settlement received by a subsidiary bank. Union Planters also reported no loan-loss provision in this year's third quarter compared to a $1.5 million provision in the year-ago period.

Excluding acquisitions, Union Planters' average bonus increased by $343 million, or 15%, over the third quarter of 1993.

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