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.
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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