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 March 31, 2005
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 001-15185
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
124,131,336
Class
Outstanding on March 31, 2005
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 | |||||
| March 31 | December 31 | |||||
| (Dollars in thousands)(Unaudited) | 2005 | 2004 | 2004 | |||
| Assets: | ||||||
| Cash and due from banks | $ 773,415 | $ 859,091 | $ 638,189 | |||
| Federal funds sold and securities | ||||||
| purchased under agreements to resell | 1,598,995 | 564,118 | 682,310 | |||
| Total cash and cash equivalents | 2,372,410 | 1,423,209 | 1,320,499 | |||
| Investment in bank time deposits | 10,731 | 267 | 5,329 | |||
| Trading securities | 1,826,595 | 804,010 | 988,015 | |||
| Loans held for sale | 5,277,158 | 4,323,269 | 5,167,981 | |||
| Securities available for sale | 2,899,474 | 2,484,663 | 2,680,556 | |||
| Securities held to maturity (market value of $454 on March 31, 2005; $957 on March 31, 2004; and $457 on December 31, 2004) | 442 | 929 | 441 | |||
| Loans, net of unearned income | 17,183,822 | 14,212,120 | 16,427,673 | |||
| Less: Allowance for loan losses | 164,195 | 160,685 | 158,159 | |||
| Total net loans | 17,019,627 | 14,051,435 | 16,269,514 | |||
| Premises and equipment, net | 384,505 | 355,624 | 379,359 | |||
| Real estate acquired by foreclosure | 25,695 | 29,877 | 27,777 | |||
| Mortgage servicing rights, net | 1,135,645 | 708,890 | 1,036,458 | |||
| Goodwill | 287,866 | 175,777 | 187,200 | |||
| Other intangible assets, net | 89,568 | 37,358 | 34,769 | |||
| Capital markets receivables and other assets | 3,827,707 | 2,688,860 | 1,673,785 | |||
| Total assets | $ 35,157,423 | $ 27,084,168 | $ 29,771,683 | |||
| Liabilities and shareholders' equity: | ||||||
| Deposits: | ||||||
| Interest-bearing | $ 17,563,806 | $ 12,841,211 | $ 14,787,645 | |||
| Noninterest-bearing | 5,508,634 | 5,302,468 | 4,994,522 | |||
| Total deposits | 23,072,440 | 18,143,679 | 19,782,167 | |||
| Federal funds purchased and securities | ||||||
| sold under agreements to repurchase | 2,788,158 | 2,028,188 | 3,247,048 | |||
| Commercial paper and other short-term borrowings | 1,891,728 | 408,082 | 566,119 | |||
| Capital markets payables and other liabilities | 2,425,171 | 2,239,466 | 1,518,540 | |||
| Term borrowings | 2,591,354 | 2,345,409 | 2,616,368 | |||
| Total liabilities | 32,768,851 | 25,164,824 | 27,730,242 | |||
| Preferred stock of subsidiary | 295,858 | 448 | 458 | |||
| 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 - 124,131,336 on March 31, 2005; 123,980,548 on March 31, 2004; and 123,531,904 on December 31, 2004) | 77,582 | 77,488 | 77,207 | |||
| Capital surplus | 196,527 | 156,197 | 173,872 | |||
| Undivided profits | 1,851,746 | 1,662,677 | 1,795,853 | |||
| Accumulated other comprehensive (loss)/income, net | (36,179) | 17,808 | (9,928) | |||
| Deferred compensation on restricted stock incentive plans | (9,076) | (8,032) | (8,181) | |||
| Deferred compensation obligation | 12,114 | 12,758 | 12,160 | |||
| Total shareholders' equity | 2,092,714 | 1,918,896 | 2,040,983 | |||
| Total liabilities and shareholders' equity | $ 35,157,423 | $ 27,084,168 | $ 29,771,683 | |||
| See accompanying notes to consolidated condensed financial statements. Certain previously reported amounts have been reclassified to agree with current presentation. | ||||||
| CONSOLIDATED CONDENSED STATEMENTS OF INCOME | First Horizon National Corporation | |||||
| Three Months Ended | ||||||
| March 31 | ||||||
| (Dollars in thousands except per share data)(Unaudited) | 2005 | 2004 | ||||
| Interest income: | ||||||
| Interest and fees on loans | ||||||