EX-99.1 2 newsrelease.htm PRESS RELEASE First Horizon Modifies Operating Segments

EXHIBIT 99.1

First Horizon Modifies Operating Segments

MEMPHIS, Tenn., April 9, 2010 (GLOBE NEWSWIRE) -- In first quarter 2010 First Horizon National Corporation (NYSE:FHN) modified its operating segments to better align with its strategic focus on the regional banking franchise and capital markets business. There is no impact on the company's previously reported consolidated results. Key changes include the addition of the Non-Strategic segment which combines the former Mortgage Banking and National Specialty Lending segments; correspondent banking has been moved from Capital Markets to Regional Banking; and first lien mortgage production is now in the Regional Bank segment. The new segment structure, description and activities include the following:

Regional Banking

  • Traditional lending and deposit-taking, investments, insurance services, financial planning, trust services, asset management, cash management, and health savings accounts
  • Correspondent banking, which provides credit, depository and other banking-related services to other financial institutions—Previously included in Capital Markets segment
  • First lien mortgage originations through regional banking channels—Previously included in Mortgage Banking segment

Capital Markets

  • Fixed income sales, trading and strategies for institutional clients in U.S. and abroad
  • Other capital markets products such as portfolio advisory, derivatives and loan trading

Corporate

  • Executive management, enterprise-wide risk management, corporate finance, corporate communications, low-income housing activities, legal functions and funding for the corporation including any impact from balance sheet positioning
  • Various charges related to restructuring, repositioning and efficiency initiatives

Non-Strategic—Combines Previous National Specialty Lending and Mortgage Banking Segments

  • Wind-down businesses that include:
  • National commercial and consumer lending loan portfolios
  • Trust preferred loan portfolio—Previously included in Capital Markets segment
  • Legacy mortgage servicing
  • Exited businesses (such as national mortgage banking and institutional equity research) and associated restructuring, repositioning, and efficiency charges

The tables provided at the end of this release present selected prior-period data that conforms to the newly revised segment structure. A complete financial supplement and investor slide presentation that includes results for the quarter ended March 31 will be released and posted on FHN's investor relations website, http://ir.fhnc.com, on April 16.

About First Horizon

The 5,500 employees of First Horizon National Corp. (NYSE:FHN) provide financial services through about 180 bank locations in and around Tennessee and 18 FTN Financial Group offices in the U.S. and abroad. First Tennessee has the leading combined market deposit share in the 17 Tennessee counties where it does business and one of the highest customer retention rates of any bank in the country. FTN Financial is an industry leader in fixed income sales, trading and strategies for institutional clients in the U.S. and abroad. FHN has been recognized as one of the nation's best employers by AARP and Working Mother magazines.  More information can be found at www.fhnc.com. 

FHN-G

A chart accompanying this release is available at http://media.globenewswire.com/cache/3323/file/8076.pdf

BUSINESS SEGMENT HIGHLIGHTS        
Quarterly, Unaudited        
         
         
(Thousands)  4Q09  3Q09  2Q09  1Q09
         
Regional Banking        
Total revenues (a) $221,970 $220,535 $228,622 $217,662
Provision for loan losses 46,524 96,449 56,201 107,242
Noninterest expenses 157,575 172,298 177,870 171,088
Income/(loss) before income taxes 17,871 (48,212) (5,449) (60,668)
Provision/(benefit) for income taxes 6,471 (18,300) (2,142) (22,943)
 Net income/(loss) $11,400 $(29,912) $(3,307) $(37,725)
         
Capital Markets        
Total revenues (a) $121,320 $132,115 $183,615 $210,787
Noninterest expenses 75,119 80,421 95,359 135,625
Income before income taxes 46,201 51,694 88,256 75,162
Provision for income taxes 17,326 19,434 33,210 28,278
 Net income $28,875 $32,260 $55,046 $46,884
         
Corporate        
Total revenues (a) $17,456 $33,163 $17,582 $5,720
Noninterest expenses  32,802  17,790  26,405  17,065
Income/(loss) before income taxes (15,346) 15,373 (8,823) (11,345)
Provision/(benefit) for income taxes (9,913) 5,743 (9,705) (9,419)
Net income/(loss) $(5,433) $9,630 $882 $(1,926)
         
Non-Strategic        
Total revenues (a) $75,332 $108,906 $53,450 $161,764
Provision for loan losses 88,476 88,551 203,799 192,758
Noninterest expenses 124,847 79,392 102,852 84,025
Loss before income taxes (137,991) (59,037) (253,201) (115,019)
Benefit for income taxes (51,995) (22,245) (95,406) (43,339)
Net loss from continuing operations (85,996) (36,792) (157,795) (71,680)
Loss from discontinued operations, net of tax  (1,690)  (10,200)  (308)  (648)
 Net loss $(87,686) $(46,992) $(158,103) $(72,328)
         
Total Consolidated        
Total revenues (a) $436,078 $494,719 $483,269 $595,933
Provision for loan losses 135,000 185,000 260,000 300,000
Noninterest expenses 390,343 349,901 402,486 407,803
Loss before income taxes (89,265) (40,182) (179,217) (111,870)
Benefit for income taxes (38,111) (15,368) (74,043) (47,423)
Net loss from continuing operations (51,154) (24,814) (105,174) (64,447)
Loss from discontinued operations, net of tax  (1,690)  (10,200)  (308)  (648)
 Net loss $(52,844) $(35,014) $(105,482) $(65,095)
Certain previously reported amounts have been reclassified to agree with current presentation.
(a) Includes noninterest income and net interest income.
   
REGIONAL BANKING         
Quarterly, Unaudited         
         
         
(Thousands)  4Q09   3Q09   2Q09   1Q09 
         
Income Statement        
Net interest income  $140,078 $137,419 $141,634 $137,847
Noninterest income  81,892 83,116 86,988 79,815
Total revenues   221,970  220,535  228,622  217,662
Total noninterest expense   157,575  172,298  177,870  171,088
Provision for loan losses  46,524 96,449 56,201 107,242
Income/(loss) before income taxes $17,871 $(48,212) $(5,449) $(60,668)
         
Efficiency ratio  70.99% 78.13% 77.80% 78.60%
         
Balance Sheet (millions)        
Average loans $11,064 $11,319 $11,818 $12,099
Other earning assets  156 161 287 367
Total earning assets   11,220  11,480  12,105  12,466
Core deposits   11,290  10,808  10,635  10,465
Other deposits   642  876  1,011  997
Total deposits  11,932 11,684 11,646 11,462
Total period end deposits 12,554 11,553 11,783 11,826
Total period end assets  $11,915 $11,693 $12,317 $12,834
Net interest margin  4.95% 4.75% 4.69% 4.48%
Loan yield 3.97 3.95 3.99 3.97
Deposit average yield 0.80 0.90 1.07 1.43
         
Noninterest Income Detail        
Deposit transactions and cash management  $40,711 $41,272 $41,293 $38,594
Insurance commissions  4,726 5,020 5,406 5,493
Trust services and investment management  7,685 7,368 7,672 6,840
Bankcard income 4,460 4,487 4,356 4,158
Mortgage banking 4,204 4,819 8,722 6,864
Other service charges  3,345 3,813 4,298 3,681
Miscellaneous revenue  16,761 16,337 15,241 14,185
Total noninterest income $81,892 $83,116 $86,988 $79,815
         
Key Statistics        
Locations        
Financial centers  183  183  200  202
Full service  168  168  168  168
Teller-only   15  15  32  34
         
Trust assets        
Total assets (millions) $9,574 $9,705 $9,017 $8,872
Total managed assets (millions)  4,728  4,736  4,508  4,467
         
Mortgage production        
First lien production (millions) $192 $234 $445 $408
Certain previously reported amounts have been reclassified to agree with current presentation.       
         
CAPITAL MARKETS         
Quarterly, Unaudited         
         
         
(Thousands)  4Q09   3Q09   2Q09   1Q09 
         
Income Statement        
Net interest income $3,333 $3,009 $4,091 $4,533
Noninterest income:         
Fixed income  110,985 120,528 170,106 196,985
Other 7,002 8,578 9,418 9,269
Total noninterest income  117,987 129,106 179,524 206,254
Total revenues  121,320 132,115 183,615 210,787
Noninterest expense  75,119 80,421 95,359 135,625
Income before income taxes $46,201 $51,694 $88,256 $75,162
         
Efficiency ratio  61.92% 60.87% 51.93% 64.34%
Fixed income average daily revenue $1,790 $1,883 $2,700 $3,229
         
Balance Sheet (millions)        
Trading inventory $960 $857 $964 $1,116
Other earning assets 668 541 616 726
Total earning assets 1,628 1,398 1,580 1,842
Total period end assets 1,672 2,269 2,719 3,082
Net interest margin 0.81% 0.85% 1.04% 1.00%
Certain previously reported amounts have been reclassified to agree with current presentation.     
         
CORPORATE         
Quarterly, Unaudited         
         
         
(Thousands)  4Q09   3Q09   2Q09   1Q09 
         
Income Statement        
Net interest income $7,696 $8,494 $6,158 $4,044
Noninterest income  9,820 24,669 11,536 1,677
Securities losses, net (60)  --  (112) (1)
Total revenues 17,456 33,163 17,582 5,720
Noninterest expense 32,802 17,790 26,405 17,065
Income/(loss) before income taxes $(15,346) $ 15,373 $ (8,823) $ (11,345)
         
Average Balance Sheet (millions)        
Total earning assets $3,150 $3,000 $3,565 $3,458
Net interest margin  0.97% 1.12% 0.69% 0.47%
Certain previously reported amounts have been reclassified to agree with current presentation.       
         
NON-STRATEGIC        
Quarterly, Unaudited         
         
         
(Thousands)  4Q09   3Q09   2Q09   1Q09 
         
Income Statement        
Net interest income  $38,786 $41,979 $47,203 $50,163
Noninterest income  37,397 66,862 6,465 111,602
Securities gain/(losses), net (851) 65 (218) (1)
Total revenues  75,332 108,906 53,450 161,764
Noninterest expense  124,847 79,392 102,852 84,025
Provision for loan losses  88,476  88,551  203,799  192,758
Loss before income taxes $(137,991) $(59,037) $(253,201) $(115,019)
         
Average Balance Sheet (millions)        
Loans $7,196 $7,702 $8,268 $8,861
Loans held for sale 333 339 380 386
Trading securities 93 125 141 173
Mortgage servicing rights 283 321 326 416
Other assets 314 231 169 437
Total assets 8,219 8,718 9,284 10,273
Escrow balances  803 923 1,202 1,337
Net interest margin  1.99% 2.00% 2.12% 2.10%
         
Noninterest Expense Detail (thousands)        
Salaries and benefits  $7,801 $8,348 $7,391 $9,704
Contract labor and outsourcing  6,087 5,062 5,260 7,381
Equipment and occupancy  5,137 2,097 1,880 3,116
Foreclosure and repurchase provision  59,344 25,751 29,098 12,267
Other expenses  46,478 38,134 59,223 51,557
Total noninterest expense  $124,847 $79,392 $102,852 $84,025
         
Mortgage warehouse (millions)        
Ending warehouse balance (loans held for sale) $307 $333 $331 $373
Certain previously reported amounts have been reclassified to agree with current presentation.     
CONTACT:  First Horizon National Corporation
          Media Information
          Anthony Hicks
            (901) 523-4726
          Investor Relations
          Aarti Bowman
            (901) 523-4017