Back to GetFilings.com



FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

(Mark one)

(X) QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2004

OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from______ to______

Commission file number 000-4491

CIK number 0000036966

FIRST HORIZON NATIONAL CORPORATION
(Exact name of registrant as specified in its charter)

Tennessee                        62-0803242
(State or other jurisdiction of
incorporation or organization)

 (I.R.S. Employer
Identification No.)
165 Madison Avenue, Memphis, Tennessee 38103
(Address of principal executive offices) (Zip Code)

(901) 523-4444
(Registrant's telephone number, including area code)

(Former name, former address and former fiscal year,
if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  x  No____

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act)

Yes  x  No____

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Common Stock, $.625 par value   123,127,697
Class Outstanding on September 30, 2004



FIRST HORIZON NATIONAL CORPORATION

INDEX

Part I. Financial Information

Part II. Other Information

Signatures

Exhibit Index

2

PART I.

FINANCIAL INFORMATION

Item 1. Financial Statements

The Consolidated Condensed Statements of Condition

The Consolidated Condensed Statements of Income

The Consolidated Condensed Statements of Shareholders' Equity

The Consolidated Condensed Statements of Cash Flows

The Notes to Consolidated Condensed Financial Statements

This financial information reflects all adjustments that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the interim periods presented.

3


CONSOLIDATED CONDENSED STATEMENTS OF CONDITION      First Horizon National Corporation
September 30   December 31
(Dollars in thousands)(Unaudited)     2004 2003 2003 
Assets:
Cash and due from banks  $      810,541   $      858,925   $      773,294 
Federal funds sold and securities
  purchased under agreements to resell                     475,295                 529,420                 381,500 
    Total cash and cash equivalents                  1,285,836              1,388,345              1,154,794 
Investment in bank time deposits                     5,696                        983                        498 
Trading securities               1,068,585              1,028,135                 800,490 
Loans held for sale              3,893,279              2,896,741              2,977,723 
Securities available for sale              1,771,762              2,568,527              2,469,342 
Securities held to maturity (market value of 
   $559 on September 30, 2004; $153,247 on 
   September 30, 2003; and $1,077 on December 31, 2003)                        541                 153,913                     1,028 
Loans, net of unearned income            16,403,309            13,349,056            13,990,525 
  Less:  Allowance for loan losses                     161,856                 161,401                 160,333 
    Total net loans                16,241,453            13,187,655            13,830,192 
Premises and equipment, net                 369,701                 334,353                 350,202 
Real estate acquired by foreclosure                   32,472                   23,989                   24,075 
Mortgage servicing rights, net                 966,146                 692,481                 795,938 
Goodwill                 184,690                 184,605                 174,807 
Other intangible assets, net                   37,161                   41,005                   38,742 
Capital markets receivables and other assets     2,437,403      2,988,606      1,888,859 
Total assets      $ 28,294,725   $ 25,489,338   $ 24,506,690 
Liabilities and shareholders' equity:
Deposits:
  Interest-bearing  $   13,966,048   $   11,736,142   $ 11,139,758 
  Noninterest-bearing                  4,647,492              4,819,770              4,540,213 
    Total deposits                18,613,540            16,555,912            15,679,971 
Federal funds purchased and securities
  sold under agreements to repurchase              2,152,886              2,200,923              3,079,248 
Commercial paper and other short-term borrowings                 442,162                 460,487                 227,976 
Capital markets payables and other liabilities              2,649,493              2,723,058              1,901,959 
Term borrowings                  2,453,510              1,597,045              1,726,766 
    Total liabilities                26,311,591            23,537,425            22,615,920 
Guaranteed preferred beneficial interests in
  First Horizon's junior subordinated debentures                            -                 100,000                             - 
Preferred stock of subsidiary                             454                        347  452 
Shareholders' equity
Preferred stock - no par value (5,000,000 shares authorized,
  but unissued)                            -                             -                             - 
Common stock - $.625 par value (shares authorized - 
  400,000,000; shares issued and outstanding - 123,127,697 on September 30, 2004;
  125,381,867  on September 30, 2003; and 124,834,272 on December 31, 2003)                   76,955                   78,364  78,021 
Capital surplus                 165,212                 140,314                 145,817 
Undivided profits              1,745,759              1,632,236              1,662,699 
Accumulated other comprehensive (loss)/income, net                 (11,195)                       626                        682 
Deferred compensation on restricted stock incentive plans                   (7,134)                (11,908)                  (9,044)
Deferred compensation obligation                       13,083                   11,934                   12,143 
    Total shareholders' equity                  1,982,680              1,851,566              1,890,318 
Total liabilities and shareholders' equity      $ 28,294,725   $ 25,489,338   $ 24,506,690 
See accompanying notes to consolidated condensed financial statements.

4


CONSOLIDATED CONDENSED STATEMENTS OF INCOME               First Horizon National Corporation
Three Months Ended Nine Months Ended
September 30 September 30
(Dollars in thousands except per share data)(Unaudited)                  2004             2003             2004          2003
Interest income:
Interest and fees on loans $ 199,466 $ 167,120  $ 549,074 $ 485,703 
Interest on investment securities 28,467  24,331                   81,692  80,974 
Interest on loans held for sale 56,120  71,412                 158,828                 192,795 
Interest on trading securities 13,954  13,368                   37,743                   37,046 
Interest on other earning assets       2,176    1,205                       4,676                     3,668 
    Total interest income       300,183   277,436                   832,013                 800,186 
Interest expense:
Interest on deposits:
  Savings 94  137                        304                        699 
  Checking interest and money market account 6,087  5,076                   16,254                   17,558 
  Certificates of deposit under $100,000 and other time  15,923  13,755                   43,289                   43,563 
  Certificates of deposit $100,000 and more 28,161  17,909                   65,547                   53,222 
Interest on short-term borrowings