Tuesday, August 29, 2006

first horizon / fhn regional bank

fakten zu first fhn:
Mortgage banking, one of the nation's top 25 mortgage
originators and top 15 servicers,

First Horizon's profit to drop on mortgage slowdown

First Horizon National Corp. said trends in its mortgage business "foreshadow approximately a $1 billion reduction in originations and deliveries" during the third quarter. The Memphis-based banking institution also said "further deterioration" is in the mortgage environment, thereby reducing pre-tax operating earnings by about $35 million compared to the second quarter. The drop reflects in part a pinch on First Horizon's gain-on-sale margins as well as higher net hedging costs. In addition, settlement of a class-action lawsuit is anticipated to create a third-quarter pre-tax accrual estimated at $21 million, the company said. "Although we currently expect some modest improvement in mortgage banking in the fourth quarter, the current operating environment suggests that mortgage banking operations will only be in the range of breakeven," the company added.

to be continued.......



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