First Horizon National Corporation (FHN) has reported 12.89 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $54.84 million, or $0.23 a share in the quarter, compared with $48.58 million, or $0.20 a share for the same period last year.
Revenue during the quarter grew 7.30 percent to $319.63 million from $297.88 million in the previous year period. Net interest income for the quarter rose 17.34 percent over the prior year period to $195.55 million. Non-interest income for the quarter fell 6.17 percent over the last year period to $124.08 million.
Net interest margin improved 18 basis points to 3 percent in the quarter from 2.82 percent in the last year period. Efficiency ratio for the quarter improved to 74.40 percent from 81.94 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"Throughout the year our people remained focused on the right things: supporting our customers, growing our business, making the best use of our strong capital position, managing the impact of interest rates and improving our operating leverage by investing in ways that drive business," said Bryan Jordan, First Horizon’s chairman and chief executive officer. "We made meaningful progress toward each of our bonefish targets, and that momentum is positioning this company for long-term success."
Liabilities outpace assets growthTotal assets stood at $28,555.23 million as on Dec. 31, 2016, up 9.01 percent compared with $26,195.14 million on Dec. 31, 2015. On the other hand, total liabilities stood at $25,850.15 million as on Dec. 31, 2016, up 9.74 percent from $23,555.55 million on Dec. 31, 2015.
Loans outpace deposit growthNet loans stood at $19,589.52 million as on Dec. 31, 2016, up 12.09 percent compared with $17,476.26 million on Dec. 31, 2015. Deposits stood at $22,672.36 million as on Dec. 31, 2016, up 13.55 percent compared with $19,967.48 million on Dec. 31, 2015. Investments stood at $4,079.50 million as on Dec. 31, 2016, up 0.76 percent or $30.97 million from year-ago. Shareholders equity stood at $2,705.08 million as on Dec. 31, 2016, up 2.48 percent or $65.50 million from year-ago.
Return on average assets moved up 2 basis points to 0.80 percent in the quarter from 0.78 percent in the last year period. At the same time, return on average equity increased 77 basis points to 9 percent in the quarter from 8.23 percent in the last year period.
Nonperforming assets moved down 22.32 percent or $47.30 million to $164.62 million on Dec. 31, 2016 from $211.92 million on Dec. 31, 2015.
Capital ratios deteriorateFirst Horizon National Corporation witnessed a deterioration in capital ratios during in the quarter. Tier-1 leverage ratio stood at 9.35 percent for the quarter, down from 9.85 percent for the previous year quarter. Equity to assets ratio was 9.47 percent for the quarter, down from 10.08 percent for the previous year quarter. Book value per share was $9.90 for the quarter, up 5.10 percent or $0.48 compared to $9.42 for the same period last year.
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