MEMPHIS, Tenn., Dec. 21, 2004 (PRIMEZONE) -- First Horizon National Corporation (NYSE:FHN) announced today a revised business outlook for the fourth quarter of 2004.
The recent volatility in intermediate and longer-term interest rates continues to disrupt the market and is creating a much longer period of uncertainty than has previously been anticipated. Based on currently available information, FHN indicated fourth quarter 2004 earnings will be negatively affected by unfavorable impacts from mortgage servicing hedging and impairment costs. Additionally, while the operating environment has recently begun to improve, it remains challenging for mortgage origination pricing and the overall capital markets business. As a result of these impacts, FHN anticipates earnings per share for the fourth quarter ending Dec. 31, 2004, to be approximately $0.80.
In addition, FHN stated that as long as this environment persists, earnings will continue to be under pressure similar to this and the previous quarter.
"While these impacts on our earnings are greater than expected, we believe these issues are short-term in nature," said Chairman and CEO Ken Glass. "Like many financial institutions, First Horizon is not immune from significant market disruptions, and our current earnings outlook for mortgage and capital markets businesses reflects this current environment."
Glass continued, "Our strategy of continuing to invest in our banking business has produced approximately 40 percent growth, enabling the retail/commercial banking segment to represent more than 80 percent of our pre-tax earnings this quarter compared to 47 percent at this same time last year. We continue to focus on the national expansion strategies for our retail/commercial bank and are excited about the growth potential that these initiatives provide for our company."
FHN will release its fourth quarter and year-end 2004 financial results on Wednesday, Jan.19, 2005, prior to the opening of the financial markets.
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, competition, investor responses to these conditions, ability to execute business plans, geo-political developments, items already mentioned in this press release, and other factors described in our recent filings with the SEC. FHN 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 to reflect future events or developments.
GENERAL INFORMATION
About First Horizon
The 12,000 employees of First Horizon National Corp. (NYSE:FHN) provide financial services to individual and business customers through hundreds of offices located in more than 40 states. The corporation's three major brands -- FTN Financial, First Horizon and First Tennessee - provide customers with a broad range of products and services including:
-- Capital markets, with one of the nation's top underwriters of
U.S. government agency securities
-- Mortgage banking, with one of the nation's top 15 mortgage
originators and servicers, which earned a top-10 ranking in
customer satisfaction from J.D. Power and Associates
-- Retail/commercial banking, with the largest market share in
Tennessee and one of the highest customer retention rates of
any bank in the country
FHN companies have been recognized as some of the nation's best employers by AARP, Working Mother, Business Week and Fortune magazines. FHN also was named one of the nation's 100 best corporate citizens by Business Ethics magazine. More information can be found at www.FirstHorizon.com.