UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 20, 2012
FIRST HORIZON NATIONAL CORPORATION
(Exact name of registrant as specified in charter)
TN | 001-15185 | 62-0803242 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
165 MADISON AVENUE, MEMPHIS, TENNESSEE | 38103 | |||
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (901) 523-4444
________________________________________________________________________________
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
Furnished as Exhibit 99.1 is a copy of First Horizon National Corporation's earnings release for the quarter ended December 31, 2011, which was issued January 20, 2012.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits
The following exhibit is furnished pursuant to Item 2.02, is not to be considered "filed" under the Securities Exchange Act of 1934, as amended ("Exchange Act"), and shall not be incorporated by reference into any of the Company's previous or future filings under the Securities Act of 1933, as amended, or the Exchange Act.
Exhibit #
Description
99.1
First Horizon National Corporation Earnings Release Issued for the Quarter Ended December 31, 2011.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
FIRST HORIZON NATIONAL CORPORATION (Registrant) |
||
Date: January 20, 2012 | By: | /s/ WILLIAM C. LOSCH III |
William C. Losch III Executive Vice President and Chief Financial Officer |
EXHIBIT INDEX
The following exhibit is furnished pursuant to Item 2.02, is not to be considered "filed" under the Securities Exchange Act of 1934, as amended ("Exchange Act"), and shall not be incorporated by reference into any of the Company's previous or future filings under the Securities Act of 1933, as amended, or the Exchange Act.
Exhibit # |
Description |
99.1 |
First Horizon National Corporation Earnings Release Issued for the Quarter Ended December 31, 2011. |
EXHIBIT 99.1
MEMPHIS, Tenn., Jan. 20, 2012 (GLOBE NEWSWIRE) -- Fundamentals in First Horizon National Corp.'s (NYSE:FHN) core businesses in the fourth quarter of 2011 continued to be strong, headwinds from the company's legacy businesses continued to diminish and credit trends continued to improve as the company returned to profitability for the year. In 2011 deposit market share, loans and deposits grew in the First Tennessee regional banking business, and the unique business model in the FTN Financial capital markets business continued to make that group a strong contributor.
"2011 was another year of significant progress for First Horizon, and we're well-positioned to continue that trend this year," said Bryan Jordan, First Horizon chairman and CEO. "We're ready to meet the continuing challenges of a slow economic recovery and a low interest rate environment. The dedicated professionals throughout our company are working hard to deepen relationships with our customers, earn new business and successfully execute our long-term strategic plan."
Financial results
Key Performance Ratios & Other Data | 4Q11 Change vs. | ||||
(Shares in thousands)/(Unaudited) | 4Q11 | 3Q11 | 4Q10 | 3Q11 | 4Q10 |
Diluted EPS | $0.13 | $0.14 | $(0.20) | (7)% | NM |
Diluted shares | 260,372 | 262,803 | 239,095 | (1)% | 9 % |
Period-end shares outstanding | 257,468 | 263,619 | 263,366 | (2)% | (2)% |
Return on average assets (annualized) (a) | 0.60% | 0.62% | 0.27% | ||
Return on average common equity (annualized) (b) | 5.69% | 5.90% | (8.59)% | ||
Net interest margin (c) | 3.23% | 3.23% | 3.18% | ||
Efficiency ratio (d) | 86.71% | 89.13% | 88.32% | ||
Full time equivalent employees | 4,728 | 4,748 | 5,435 | * | (13)% |
NM - Not meaningful | |||||
* Amount is less than one percent. | |||||
(a) Calculated using net income. | |||||
(b) Calculated using net income available to common shareholders. | |||||
(c) Net interest margin is computed using total net interest income adjusted for fully taxable equivalent ("FTE"). Refer to the Non-GAAP to GAAP Reconciliation at the end of this release. | |||||
(d) Noninterest expense divided by total revenue excluding securities gains/(losses). |
Segment highlights led by core business strength
Income Statement Highlights | 4Q11 Change vs. | ||||
(Thousands)/(Unaudited) | 4Q11 | 3Q11 | 4Q10 | 3Q11 | 4Q10 |
Net interest income | $178,877 | $176,340 | $182,236 | 1 % | (2)% |
Noninterest income | 180,993 | 185,725 | 189,483 | (3)% | (4)% |
Securities gains/(losses), net | 203 | 35,162 | 15,681 | NM | NM |
Total revenue | 360,073 | 397,227 | 387,400 | (9)% | (7)% |
Noninterest expense | 312,036 | 322,708 | 328,294 | (3)% | (5)% |
Provision for loan losses | 10,000 | 32,000 | 45,000 | (69)% | (78)% |
Income before income taxes | 38,037 | 42,519 | 14,106 | (11)% | NM |
Provision/(benefit) for income taxes | (526) | 8,367 | (6,637) | NM | NM |
Income from continuing operations | 38,563 | 34,152 | 20,743 | 13 % | 86 % |
Income/(loss) from discontinued operations, net of tax | (752) | 4,828 | (3,435) | NM | 78 % |
Net income | 37,811 | 38,980 | 17,308 | (3)% | NM |
Net income attributable to noncontrolling interest | 2,871 | 2,875 | 2,840 | * | 1 % |
Net income attributable to controlling interest | 34,940 | 36,105 | 14,468 | (3)% | NM |
Preferred stock dividends | -- | -- | 63,154 | NM | NM |
Net income available to common shareholders | $34,940 | $36,105 | $(48,686) | (3)% | NM |
NM - Not meaningful | |||||
* Amount is less than one percent. |
Continued improvement in credit quality
Asset Quality Highlights | 4Q11 Change vs. | ||||
(Dollars in Thousands)/(Unaudited) | 4Q11 | 3Q11 | 4Q10 | 3Q11 | 4Q10 |
Allowance for loan losses | $384,351 | $449,645 | $664,799 | (15)% | (42)% |
Allowance / period-end loans | 2.34% | 2.77% | 3.96% | ||
Net charge-offs | $75,294 | $106,446 | $100,100 | (29)% | (25)% |
Net charge-offs (annualized) / average loans | 1.84% | 2.65% | 2.36% | ||
Non-performing assets (NPA) | $521,161 | $582,572 | $836,502 | (11)% | (38)% |
NPA % (a) | 2.57% | 3.02% | 4.48% | ||
(a) NPAs related to the loan portfolio over period-end loans plus foreclosed real estate and other assets. |
Capital deployment
Balance Sheet Highlights & Capital Ratios | 4Q11 Change vs. | ||||
(Period-End, Dollars in Thousands)/(Unaudited) | 4Q11 | 3Q11 | 4Q10 | 3Q11 | 4Q10 |
Total loans, net of unearned income | $16,397,127 | $16,241,402 | $16,782,572 | 1 % | (2)% |
Total deposits | 16,213,009 | 15,698,255 | 15,208,231 | 3 % | 7 % |
Total assets | 24,789,384 | 25,571,469 | 24,698,952 | (3)% | * |
Total liabilities | 22,104,747 | 22,828,239 | 22,020,947 | (3)% | * |
Total equity | 2,684,637 | 2,743,230 | 2,678,005 | (2)% | * |
Book value per common share | $9.28 | $9.29 | $9.05 | ||
Tangible book value per common share (a) | $8.66 | $8.68 | $8.31 | ||
Tangible common equity/tangible assets (a) | 9.05% | 9.00% | 8.93% | ||
Tier 1 capital ratio (b) | 14.16% | 14.44% | 13.99% | ||
* Amount is less than one percent. | |||||
(a) Refer to the Non-GAAP to GAAP Reconciliation at the end of this release. | |||||
(b) Current quarter is an estimate. |
Use of non-GAAP measures
Certain measures are included in the text and tables of this release that are non-GAAP, meaning they are not presented in accordance with generally accepted accounting principles (GAAP) in the U.S. FHN's management believes such measures are relevant to understanding the capital position and results of the company. The non-GAAP items presented in this release are pre-tax income related to core businesses, tangible common equity to tangible assets, tangible book value per common share and net interest margin computed using net interest income adjusted for FTE (fully taxable equivalent). These measures are reported to FHN's management and board of directors through various internal reports. Additionally, disclosure of the non-GAAP capital ratios provides a meaningful base for comparability to other financial institutions as these ratios have become an important measure of the capital strength of banks as demonstrated by the inclusion in the stress tests administered by the United States Treasury Department under the Capital Assistance Program. Non-GAAP measures are not formally defined by GAAP or codified in the federal banking regulations, and other entities may use calculation methods that differ from those used by FHN. The reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items is contained in the following table.
NON-GAAP to GAAP Reconciliation | |||
(Period End, Dollars in Thousands) (Unaudited) | 4Q11 | 3Q11 | 4Q10 |
Tangible Common Equity (Non-GAAP) | |||
(A) Total equity (GAAP) | $2,684,637 | $2,743,230 | $2,678,005 |
Less: Noncontrolling interest (a) | 295,165 | 295,165 | 295,165 |
(B) Total common equity | 2,389,472 | 2,448,065 | 2,382,840 |
Less: Intangible assets (GAAP) (b) | 159,902 | 160,902 | 195,061 |
(C) Tangible common equity (Non-GAAP) | $2,229,570 | $2,287,163 | $2,187,779 |
Tangible Assets (Non-GAAP) | |||
(D) Total assets (GAAP) | $24,789,384 | $25,571,469 | $24,698,952 |
Less: Intangible assets (GAAP) (b) | 159,902 | 160,902 | 195,061 |
(E) Tangible assets (Non-GAAP) | $24,629,482 | $25,410,567 | $24,503,891 |
Period-end Shares Outstanding | |||
(F) Period-end shares outstanding | 257,468 | 263,619 | 263,366 |
Ratios | |||
(C)/(E) Tangible common equity to tangible assets (TCE/TA) (Non-GAAP) | 9.05% | 9.00% | 8.93% |
(A)/(D) Total equity to total assets (GAAP) | 10.83% | 10.73% | 10.84% |
(C)/(F) Tangible book value per common share (Non-GAAP) | $8.66 | $8.68 | $8.31 |
(B)/(F) Book value per common share (GAAP) | $9.28 | $9.29 | $9.05 |
Net interest income adjusted for impact of fully taxable equivalent ("FTE") (Non-GAAP) | |||
Total Consolidated: | |||
Net interest income (GAAP) | $178,877 | $176,340 | $182,236 |
FTE adjustment | 1,650 | 1,555 | 1,048 |
Net interest income adjusted for impact of FTE (Non-GAAP) | $180,527 | $177,895 | $183,284 |
Income before income taxes in core businesses (Non-GAAP) | |||
Regional Banking - Income before income taxes | $90,765 | $93,968 | $63,211 |
Capital Markets - Income before income taxes | 27,034 | 27,889 | 23,620 |
Corporate - Income/(loss) before income taxes | (23,005) | 18,552 | 5,147 |
Income before income taxes in core businesses (Non-GAAP) | $94,794 | $140,409 | $91,978 |
Non-Strategic - Loss before income taxes | (56,757) | (97,890) | (77,872) |
Income before income taxes (GAAP) | $38,037 | $42,519 | $14,106 |
(a) Included in total equity on the consolidated condensed balance sheet. | |||
(b) Includes goodwill and other intangible assets, net of amortization. |
Conference call
First Horizon executives will host a conference call starting at 8:30 Central Time this morning where they will review earnings and performance trends. There will also be a live webcast accompanied by a slide presentation. The call and slide presentation, which are available in the events and presentations section of http://ir.fhnc.com, may involve forward-looking information, including guidance. Callers who wish to participate can call toll-free starting at 8:15 a.m. by dialing 877-303-6618. The number for international participants is 224-357-2205. The conference ID number is 36864074. Participants can also listen to the live audio webcast with the accompanying slide presentation through the investor relations section of www.fhnc.com. A replay will be available from noon Central Time today until 11:59 p.m. on Jan. 27. To listen to the replay, dial 855-859-2056 or 404-537-3406. The passcode is 36864074. The event also will be archived and available by midnight tonight in the events and presentations section of http://ir.fhnc.com.
Other information
This press release contains forward-looking statements involving significant risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking information. Those factors include general economic and financial market conditions, including expectations of and actual timing and amount of interest rate movements including the slope of the yield curve, competition, ability to execute business plans, geopolitical developments, recent and future legislative and regulatory developments, inflation or deflation, market (particularly real estate market) and monetary fluctuations, natural disasters, customer, investor and regulatory responses to these conditions and items already mentioned in this press release, as well as critical accounting estimates and other factors described in FHN's annual report on Form 10-K and other recent filings with the SEC. FHN disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements included herein or therein to reflect future events or developments.
About First Horizon
The 4,700 employees of First Horizon National Corp. (NYSE:FHN) provide financial services through more than 170 First Tennessee 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 counties where it does business and one of the highest customer retention rates of any bank in the country. FTN Financial is a capital markets 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 is available at www.fhnc.com.
FHN-G
CONTACT: Jack Bradley Media Relations (901)523-4813 JLBradley@FirstHorizon.com Aarti Bowman Investor Relations (901)523-4017 AAGoorha@FirstHorizon.com