We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
First Horizon (FHN) Q1 Earnings Meet, Revenues Beat, Stock Up
Read MoreHide Full Article
Shares of First Horizon National Corporation (FHN - Free Report) have gained 2.9% post first-quarter earnings release. The company reported first-quarter 2019 adjusted earnings per share of 35 cents, in line with the Zacks Consensus Estimate. Further, the reported figure comes in 2.9% higher than the year-ago tally.
Results benefited from higher non-interest income and lower expenses. In addition, the efficiency ratio contracted during the Jan-Mar quarter, indicating increased profitability. However, lower net interest income, rise in net charge-offs and provision for loan losses were the key undermining factors.
After considering certain non-recurring items, net income available to common shareholders for the quarter came in at $99 million, up 9.3% than the prior-year quarter.
Segment wise, quarterly net income in the regional banking segment declined 12.5% year over year to $111.7 million. Fixed income and non-strategic segments reported net income of $7.6 million each. The corporate segment, however, posted net loss of $23.4 million.
Revenues Decline, Costs Down
Total revenues for the first quarter came in at $435.6 million, slightly down on a year-over-year basis. However, the top-line figure surpassed the Zacks Consensus Estimate of $429.6 million.
Net interest income for the reported quarter dipped 2.2% year over year to $294.5 million. Net interest margin shrunk 12 basis points (bps) to 3.31%. However, non-interest income came in at $141 million, up 3.7% year over year.
Non-interest expenses slipped 5.5% year over year to $296.1 million.
Efficiency ratio came in at 67.99% compared with 71.67% witnessed in the year-ago quarter. It should be noted that a fall in the efficiency ratio indicates increase in profitability.
Total period-end loans, net of unearned income, came in at $28 billion, up 1.7% from the previous quarter. However, total period-end deposits were $32.5 billion, down nearly 1% from fourth-quarter 2018.
Credit Quality
Allowance for loan losses was down 1.2% year over year to $184.9 million. Furthermore, as a percentage of period-end loans on an annualized basis, allowance for loan losses was 0.66%, down 3 bps year over year.
Nonetheless, the quarter witnessed net charge-offs of $4.5 million compared with $1.4 million reported in the prior-year quarter. In addition, non-performing assets increased 20.2% year over year to $207.5 million. Also, during the quarter, the company recorded $9 million in provision for loan losses compared with a provision benefit of $1 million recorded in the year-ago quarter.
Capital Position
Tier 1 common equity ratio was 9.66%, up from 8.98% at the end of the year-earlier quarter. Additionally, total capital ratio was 11.82%, up from 11.25% in the prior-year quarter.
Our Viewpoint
Continued growth in loans will likely be conducive to First Horizon’s top-line performance. This apart, improvement in the efficiency ratio is also anticipated to support its profitability. Nevertheless, rising provision for loan losses remains a drag.
First Horizon National Corporation Price, Consensus and EPS Surprise
Washington Federal’s (WAFD - Free Report) second-quarter fiscal 2019 (ended Mar 31) earnings came in at 63 cents per share, surpassing the Zacks Consensus Estimate of 61 cents. The figure also reflected year-over-year growth of 10.5%.
Shares of Commerce Bancshares, Inc. (CBSH - Free Report) lost 3.2%, following the release of first-quarter 2019 results. Earnings per share of 85 cents lagged the Zacks Consensus Estimate of 91 cents. Moreover, the figure compared unfavorably with the prior-year quarter’s earnings of 88 cents.
Hancock Whitney Corporation’s (HWC - Free Report) first-quarter 2019 operating earnings per share of $1 beat the Zacks Consensus Estimate of 98 cents. The reported figure also came in 11.1% higher than the year-ago tally.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
Image: Bigstock
First Horizon (FHN) Q1 Earnings Meet, Revenues Beat, Stock Up
Shares of First Horizon National Corporation (FHN - Free Report) have gained 2.9% post first-quarter earnings release. The company reported first-quarter 2019 adjusted earnings per share of 35 cents, in line with the Zacks Consensus Estimate. Further, the reported figure comes in 2.9% higher than the year-ago tally.
Results benefited from higher non-interest income and lower expenses. In addition, the efficiency ratio contracted during the Jan-Mar quarter, indicating increased profitability. However, lower net interest income, rise in net charge-offs and provision for loan losses were the key undermining factors.
After considering certain non-recurring items, net income available to common shareholders for the quarter came in at $99 million, up 9.3% than the prior-year quarter.
Segment wise, quarterly net income in the regional banking segment declined 12.5% year over year to $111.7 million. Fixed income and non-strategic segments reported net income of $7.6 million each. The corporate segment, however, posted net loss of $23.4 million.
Revenues Decline, Costs Down
Total revenues for the first quarter came in at $435.6 million, slightly down on a year-over-year basis. However, the top-line figure surpassed the Zacks Consensus Estimate of $429.6 million.
Net interest income for the reported quarter dipped 2.2% year over year to $294.5 million. Net interest margin shrunk 12 basis points (bps) to 3.31%. However, non-interest income came in at $141 million, up 3.7% year over year.
Non-interest expenses slipped 5.5% year over year to $296.1 million.
Efficiency ratio came in at 67.99% compared with 71.67% witnessed in the year-ago quarter. It should be noted that a fall in the efficiency ratio indicates increase in profitability.
Total period-end loans, net of unearned income, came in at $28 billion, up 1.7% from the previous quarter. However, total period-end deposits were $32.5 billion, down nearly 1% from fourth-quarter 2018.
Credit Quality
Allowance for loan losses was down 1.2% year over year to $184.9 million. Furthermore, as a percentage of period-end loans on an annualized basis, allowance for loan losses was 0.66%, down 3 bps year over year.
Nonetheless, the quarter witnessed net charge-offs of $4.5 million compared with $1.4 million reported in the prior-year quarter. In addition, non-performing assets increased 20.2% year over year to $207.5 million. Also, during the quarter, the company recorded $9 million in provision for loan losses compared with a provision benefit of $1 million recorded in the year-ago quarter.
Capital Position
Tier 1 common equity ratio was 9.66%, up from 8.98% at the end of the year-earlier quarter. Additionally, total capital ratio was 11.82%, up from 11.25% in the prior-year quarter.
Our Viewpoint
Continued growth in loans will likely be conducive to First Horizon’s top-line performance. This apart, improvement in the efficiency ratio is also anticipated to support its profitability. Nevertheless, rising provision for loan losses remains a drag.
First Horizon National Corporation Price, Consensus and EPS Surprise
First Horizon National Corporation Price, Consensus and EPS Surprise | First Horizon National Corporation Quote
First Horizon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Banks
Washington Federal’s (WAFD - Free Report) second-quarter fiscal 2019 (ended Mar 31) earnings came in at 63 cents per share, surpassing the Zacks Consensus Estimate of 61 cents. The figure also reflected year-over-year growth of 10.5%.
Shares of Commerce Bancshares, Inc. (CBSH - Free Report) lost 3.2%, following the release of first-quarter 2019 results. Earnings per share of 85 cents lagged the Zacks Consensus Estimate of 91 cents. Moreover, the figure compared unfavorably with the prior-year quarter’s earnings of 88 cents.
Hancock Whitney Corporation’s (HWC - Free Report) first-quarter 2019 operating earnings per share of $1 beat the Zacks Consensus Estimate of 98 cents. The reported figure also came in 11.1% higher than the year-ago tally.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>