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First Horizon National Corp (FHN) SEC Filing 10-Q Quarterly report for the period ending Friday, March 31, 2017

First Horizon National Corp

CIK: 36966 Ticker: FHN

Exhibit 99.1

Execution, discipline drive 1Q17 progress at First Horizon

MEMPHIS, Tenn., April 13, 2017 (GLOBE NEWSWIRE) -- Progress toward long-term “bonefish” financial goals continued in the first quarter at First Horizon National Corp. (NYSE:FHN).  Net interest income, deposits and loans were up significantly year over year, with strong performance in growth markets and commercial loans, particularly specialty banking areas.  Credit quality reflected continued excellent underwriting discipline.  With revenue stable and expenses down, the efficiency ratio improved from the same period last year.  The company increased its quarterly common dividend by 29 percent during the quarter and closed its acquisition of Coastal Securities on April 3, just after the quarter ended.

“I am pleased with the continued progress we made in the first quarter toward our long-term profitability goals,” said Bryan Jordan, First Horizon’s chairman and CEO.  “Loan pipelines and commitments remain strong as our bankers focus on quality opportunities, credit quality remains excellent, our relationships with current and new customers continue to grow, and the closing of the Coastal acquisition adds talented people, new products and new customers to enhance our fixed income business.  I am pleased to report continued execution of our key strategic priorities.”     

 1Q17 Financial Highlights (all comparisons vs 1Q16)

Diluted EPS
$0.23
 ROA1
0.82%
 ROE1
9.4%
 ROTCE1
10.3%
 CET12
10.2%
    
Regional Bank -- Total revenue growth of 9% significantly outpaced expense growth of 2%, improving the efficiency ratio 411 basis points
  -- Net interest income up 12%, benefitting from 13% average loan growth and 9% increase in average deposits
  -- ROA at 1.46%; ROE at 23%
   
Fixed Income -- Fixed income product average daily revenue at $689,000
  -- Acquisition of Coastal Securities, a national leader in trading, securitization and analysis of Small Business Administration loans, expands existing SBA trading activities and
    establishes a fifth major trading desk.
   
 Consolidated -- Net income available to common shareholders up 13%, diluted EPS up 15%
  -- Net interest income up 10%
  -- Average loans up 9%; average deposits up 14%
  -- Efficiency ratio improved 198 basis points
  -- Nonperforming assets down 27%
   
Capital
Deployment
 -- Consolidated ROTCE at 10.3%, up 89 basis points
  -- Increased quarterly common dividend 29%, to $0.09 per share
   
1ROA and ROTCE are annualized numbers. ROTCE is non-GAAP and reconciled to ROE in the table below.  Business segment revenue, expense, asset and equity levels reflect those that are specifically identifiable or are allocated based on an internal allocation method. 2Current estimate
 


Consolidated summary results         
Quarterly, Unaudited            
              
        1Q17 Changes vs. 
(Dollars in thousands, except per share data)1Q17 4Q16 1Q16 4Q16 1Q16 
Income Statement Highlights            
Net interest income$   189,708   $195,551  $172,074 (3)% 10 % 
Noninterest income   116,895    124,209   132,731 (6)% (12)% 
Securities gains/(losses), net   44    (132)  1,574 NM  (97)% 
Total revenue   306,647    319,628   306,379 (4)% *  
Noninterest expense   222,205    237,897   226,927 (7)% (2)% 
Provision for loan losses   (1,000)  -   3,000 NM  NM  
Income before income taxes   85,442    81,731   76,452 5 % 12 % 
Provision for income taxes   27,054    24,008   24,239 13 % 12 % 
Net income   58,388    57,723   52,213 1 % 12 % 
Net income attributable to noncontrolling interest   2,820    2,879   2,851 (2)% (1)% 
Net income attributable to controlling interest   55,568    54,844   49,362 1 % 13 % 
Preferred stock dividends   1,550    1,550   1,550 *  *  
 Net income available to common shareholders$   54,018   $53,294  $47,812 1 % 13 % 
Common Stock Data           
EPS$   0.23   $0.23  $0.20 *  15 % 
Basic shares (thousands)   233,076    232,731   234,651 *  (1)% 
Diluted EPS$   0.23   $0.23  $0.20 *  15 % 
Diluted shares (thousands)   236,855    235,590   236,666 1 % *   
Period-end shares outstanding (thousands)   233,883    233,624   232,547 *  1 % 
Balance Sheet Highlights (Period-End)         
Total loans, net of unearned income$  19,090,074   $19,589,520  $17,574,994 (3)% 9 % 
Total deposits   23,479,841    22,672,363   20,327,834 4 % 16 % 
Total assets   29,618,600    28,555,231   26,963,682 4 % 10 % 
Total liabilities   26,878,140    25,850,147   24,320,734 4 % 11 % 
Total equity   2,740,460    2,705,084   2,642,948 1 % 4 % 
Asset Quality Highlights           
Allowance for loan losses$   201,968   $202,068  $204,034 *  (1)% 
Allowance / period-end loans 1.06  % 1.03 % 1.16%      
Net charge-offs$   (900) $(511) $9,208 (76)% NM   
Net charge-offs (annualized) / average loans NM   NM   0.21%      
Non-performing assets (NPA)$   161,284   $164,623  $219,613 (2)% (27)% 
NPA % (a) 0.80  % 0.80 % 1.20%      
Key Ratios & Other           
Return on average assets ("ROA") (annualized) (b)   0.82  % 0.80 % 0.79%      
Return on average common equity ("ROE") (annualized) (c)   9.40  % 9.00 % 8.53%      
Return on tangible common equity ("ROTCE") (annualized) (d)   10.33  % 9.89 % 9.44%      
Net interest margin (e)   2.92  % 3.00 % 2.88%      
Efficiency ratio (f)   72.47  % 74.40 % 74.45%      
Common equity tier 1 ratio ("CET1") (g)   10.15  % 9.94 % 10.33%      
Tier 1 ratio (g)   11.30  % 11.17 % 11.56%      
Market capitalization (millions)$   4,326.8   $4,674.8  $3,046.4       
Certain previously reported amounts have been reclassified to agree with current presentation. 
NM - Not meaningful 
* Amount is less than one percent. 
(a)NPAs related to the loan portfolio over period-end loans plus foreclosed real estate and other assets.
(b)Calculated using net income.
(c)Calculated using net income available to common shareholders.
(d)This non-GAAP measure is reconciled to ROE in the non-GAAP to GAAP reconciliation.
(e)Net interest margin is computed using net interest income adjusted to a fully taxable equivalent ('FTE") basis assuming a statutory federal income tax
 rate of 35 percent and, where applicable, state income taxes.
(f)Noninterest expense divided by total revenue excluding securities gains/(losses).
(g)Current quarter is an estimate.
  

Use of Non-GAAP Measures
A financial measure is included in this release that is non-GAAP, meaning it is not presented in accordance with generally accepted accounting principles (GAAP) in the U.S.  The non-GAAP item presented in this release is return on tangible common equity, or ROTCE. This measure is reported to FHN’s management and directors through various internal reports. FHN’s management believes this measure is relevant to understanding the financial condition, capital position, and financial results of FHN and its business segments. 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 First Horizon. First Horizon has reconciled ROTCE to a comparable GAAP measure, ROE, below:

Non-GAAP to GAAP Reconciliation               
Quarterly, Unaudited               
                 
           1Q17 Changes vs. 
(Thousands)1Q17  4Q16  1Q16  4Q16 1Q16 
Average Tangible Common Equity (Non-GAAP)               
Average total equity (GAAP)$  2,722,668   $2,746,828  $2,644,374        
Less: Average noncontrolling interest (a)   295,431    295,431   295,431        
Less: Average preferred stock (a)   95,624    95,624   95,624        
(A) Total average common equity$  2,331,613   $2,355,773  $2,253,319        
Less: Average intangible assets (GAAP) (b)   211,757    213,019   216,855        
(B) Average tangible common equity (Non-GAAP)$  2,119,856   $2,142,754  $2,036,464        
                 
Annualized Net Income Available to Common Shareholders               
(C) Net income available to common shareholders (annualized) (GAAP)$   219,073   $212,017  $192,299        
                 
Ratios               
(C)/(A) Return on average common equity ("ROE") (GAAP) 9.40 %  9.00%  8.53% 0.40% 0.86% 
(C)/(B) Return on average tangible common equity ("ROTCE") (Non-GAAP) 10.33 %  9.89%  9.44% 0.44% 0.89% 
(a)Included in Total equity on the Consolidated Balance Sheet.               
(b)Includes goodwill and other intangible assets, net of amortization.              
                 

Conference call
Management will hold a conference call at 8:30 a.m. Central Time today to review earnings and performance trends. There will also be a live webcast accompanied by the slide presentation available in the investor relations section of www.FirstHorizon.com.  The call and slide presentation may involve forward-looking information, including guidance.

Participants can call toll-free starting at 8:15 a.m. at 888-317-6003 and entering access code 2645251. The number for international participants is 412-317-6061. 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 April 13 until midnight April 28. To listen to the replay, dial 877-344-7529 or 412-317-0088. The access code is 10103873. The event will be archived and available by midnight April 14 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 First Horizon's annual report on Form 10-K and other recent filings with the SEC. First Horizon 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 or changes in expectations.

Debt Investor Materials
First Horizon expects to post additional materials for debt investors April 26 in the investor relations section of www.FirstHorizon.com  First Horizon will also provide these materials to analysts at upcoming meetings. The debt investor materials posted may contain forward-looking statements, including guidance, involving significant risks and uncertainties, which will be identified by words such as "believe," "expect," "anticipate," "intend," "estimate," "should," "is likely," "will," "going forward" and other expressions that indicate future events and trends and may be followed by or reference cautionary statements. A number of factors could cause actual results to differ materially from those in the forward-looking information. These factors are outlined in our most recent earnings press release and in more detail in our most current 10-Q and 10-K reports. First Horizon disclaims any obligation to update any of the forward-looking statements that are made from time to time to reflect future events or developments or changes in expectations.

About First Horizon
The 4,300 employees of First Horizon National Corp. (NYSE:FHN) provide financial services through more than 160 bank locations across Tennessee and the southern U.S. and 28 FTN Financial offices across the U.S. The company was founded during the Civil War in 1864 and has the 14th oldest national bank charter in the country. First Tennessee has the largest deposit market share in Tennessee 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 customers in the U.S. and abroad. First Horizon has been recognized as one of the nation's best employers by Working Mother and American Banker. More information is available at www.FirstHorizon.com.

FHN-G

CONTACT:  First Horizon Investor Relations, Aarti Bowman, (901) 523-4017
                  First Horizon Media Relations, James Dowd, (901) 523-4305


The following information was filed by First Horizon National Corp (FHN) on Thursday, April 13, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside First Horizon National Corp's 10-Q Quarterly Report:

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information
Consolidated Statements Of Cash Flow
Consolidated Statements Of Cash Flow (parenthetical)
Consolidated Statements Of Comprehensive Income
Consolidated Statements Of Condition
Consolidated Statements Of Condition (parenthetical)
Consolidated Statements Of Equity (parenthetical)-q
Consolidated Statements Of Equity-q
Consolidated Statements Of Income
Derivatives (gains/(losses) On Derivatives Associated With Cash Flow Hedges) (details)
Derivatives (gains/(losses) On Derivatives Associated With Interest Rate Risk Management Activities) (details)
Derivatives (gains/(losses) On Derivatives Associated With Trust Preferred Loans) (details)
Acquisitions And Divestitures
Acquisitions And Divestitures (narrative) (details)
Allowance For Loan Losses
Allowance For Loan Losses (rollforward Of The Allowance For Loan Losses By Portfolio Segment) (details)
Allowance For Loan Losses (tables)
Business Segment Information
Business Segment Information (amounts Of Consolidated Revenue, Expense, Tax And Assets) (details)
Business Segment Information (tables)
Components Of Other Comprehensive Income/(loss)
Components Of Other Comprehensive Income/(loss) (schedule Of Changes In Aoci) (details)
Components Of Other Comprehensive Income/(loss) (schedule Of Reclassification From Aoci) (details)
Components Of Other Comprehensive Income/(loss) (tables)
Contingencies And Other Disclosures
Contingencies And Other Disclosures (narrative I) (details)
Derivative Assets And Collateral Received (details)
Derivative Liabilities And Collateral Pledged (details)
Derivatives
Derivatives (derivatives Associated With Cash Flow Hedges) (details)
Derivatives (derivatives Associated With Fixed Income Trading Activities) (details)
Derivatives (derivatives Associated With Interest Rate Risk Management Activities) (details)
Derivatives (narrative) (details)
Derivatives (schedule Of Derivative Activities Associated With Trust Preferred Loans) (details)
Derivatives (tables)
Earnings Per Share
Earnings Per Share (schedule Of Anti-dilutive Options And Awards) (details)
Earnings Per Share (schedule Of Reconciliation Of Net Income/(loss) To Net Income/(loss) Available To Common Shareholders) (details)
Earnings Per Share (tables)
Fair Value Of Assets And Liabilities
Fair Value Of Assets And Liabilities (changes In Fair Value Of Assets And Liabilities Which Fair Value Option Included In Current Period Earnings) (details)
Fair Value Of Assets And Liabilities (gains/(losses) On Noncurring Fair Value Measurements) (details)
Fair Value Of Assets And Liabilities (narrative) (details)
Fair Value Of Assets And Liabilities (nonrecurring Fair Value Measurements) (details)
Fair Value Of Assets And Liabilities (schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (details)
Fair Value Of Assets And Liabilities (schedule Of Unobservable Inputs Utilized In Determining The Fair Value Of Level 3 Recurring And Non-recurring Measurements) (details)
Fair Value Of Assets And Liabilities (summary Of Book Value And Estimated Fair Value Of Financial Instruments) (details)
Fair Value Of Assets And Liabilities (summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value) (details)
Fair Value Of Assets And Liabilities (summary Of Differences Between The Fair Value Carrying Amount Of Mortgages Held-for-sale And Aggregate Unpaid Principal Amount) (details)
Fair Value Of Assets And Liabilities (tables)
Financial Information
Financial Information (policy)
Intangible Assets
Intangible Assets (narrative) (details)
Intangible Assets (schedule Of Estimated Aggregate Amortization Expense For Intangible Assets) (details)
Intangible Assets (summary Of Gross Goodwill And Accumulated Impairment Losses And Write-offs Detailed By Reportable Segments) (details)
Intangible Assets (summary Of Intangible Assets And Accumulated Amortization Included In The Consolidated Statements Of Condition) (details)
Intangible Assets (tables)
Investment Securities
Investment Securities (schedule Of Amortized Cost And Fair Value By Contractual Maturity) (details)
Investment Securities (schedule Of Fhn's Investment Securities) (details)
Investment Securities (schedule Of Investments Within The Available For Sale Portfolio That Had Unrealized Losses) (details)
Investment Securities (schedule Of Realized Gross Gains And Losses On Sale From Available For Sale Portfolio) (details)
Investment Securities (tables)
Loans
Loans (accruing And Non-accruing Loans By Class) (details)
Loans (balances Of Commercial Loan Portfolio Classes, Disaggregated By Pd Grade) (details)
Loans (certain Loans Acquired In Transfer Not Accounted For As Debt Securities Accretable Yield Movement Schedule Rollforward) (details)
Loans (information By Class Related To Individually Impaired Loans) (details)
Loans (loans By Fico Score, Consumer) (details)
Loans (narrative) (details)
Loans (schedule Of Acquired Purchase Credit Impaired Loans By Portfolio Segment) (details)
Loans (schedule Of Loans By Portfolio Segment) (details)
Loans (schedule Of Troubled Debt Restructurings Occurring During The Year) (details)
Loans (schedule Of Troubled Debt Restructurings Within The Previous 12 Months) (details)
Loans (tables)
Master Netting And Similar Agreements
Master Netting And Similar Agreements (tables)
Other Income And Other Expense
Other Income And Other Expense (details)
Other Income And Other Expense (tables)
Pension, Savings, And Other Employee Benefits
Pension, Savings, And Other Employee Benefits (narrative) (details)
Pension, Savings, And Other Employee Benefits (schedule Of Components Of Net Periodic Benefit Cost) (details)
Pension, Savings, And Other Employee Benefits (tables)
Schedule Of The Remaining Contractual Maturity By Collateral Type Of Securities Sold Under Agreements To Repurchase (details)
Securities Purchased Under Agreements To Resell And Collateral Pledged By Counterparties (details)
Securities Sold Under Agreements To Repurchase And Collateral Pledged By Company (details)
Summary Of Significant Accounting Policies (details)
Variable Interest Entities
Variable Interest Entities (summary Of The Impact Of Qualifying Lihtc Investments) (details)
Variable Interest Entities (summary Of Vie Consolidated By Fhn) (details)
Variable Interest Entities (summary Of Vie Not Consolidated By Fhn) (details)
Variable Interest Entities (tables)
Ticker: FHN
CIK: 36966
Form Type: 10-Q Quarterly Report
Accession Number: 0001193125-17-162758
Submitted to the SEC: Mon May 08 2017 5:03:15 PM EST
Accepted by the SEC: Mon May 08 2017
Period: Friday, March 31, 2017
Industry: National Commercial Banks

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