Sterne Agee Maintains Underperform on First Horizon National Following 3Q Profit
Sterne Agee has published a research report on First Horizon National Corporation (NYSE: FHN) after the company reported 3Q profits of $0.12 vs. $0.07 one year ago this quarter.
In the report, Sterne Agee writes, "Adjusting for certain special items, including a $35.1mm ptx gain tied to the sale of VISA (NYSE: V) ($93.91 – Buy: Smith) shares, which was partially offset by a $36mm special provision tied to a problem loan sale, restructuring charges of $3.2mm, and a tax benefit of approximately $7.8mm, we put operating EPS closer to $0.10/shr—below Sterne Agee and consensus of $0.16/shr. Although FHN continued to gain momentum in the core bank, and fixed income capital markets reversed its revenue slide, pre-provision profits slipped to their lowest level since 4Q10 as provisions tied to mortgage repurchase reserves jumped to $53mm in the qtr as a higher mix of MI related resolutions drove loss severities higher."
Sterne Agee maintains its Underperform rating and $7 price target on First Horizon National, which is currently trading down $0.03 from yesterday's $6.67 closing price.
