Thursday, January 17, 2008
First Horizon Loses $248 Million, Cuts Dividend
Posted by John Branston on Thu, Jan 17, 2008 at 4:00 AM
First Horizon National, parent of First Tennessee Bank and once the pride of the Memphis financial industry, reported a $248 million quarterly loss Thursday and cut its quarterly dividend from 45 cents to 20 cents. The stock price dropped 15 percent to $16, which is near its 52-week low and down 64 percent from its 52-week high of $45.
The news is another sign of financial gloom in the Memphis economy, where thousands of First Horizon employees and local investors own stock in the company. A FHN portfolio worth $1 million a year ago is now worth $360,000.
We have acted in several key areas by increasing loan loss reserves, reducing our mortgage servicing assets and national lending businesses, implementing productivity enhancements, and selling or reducing low returning operations," said CEO Jerry Baker.
-- John Branston
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