Strong Increase in Allowance for Bad Debt Drops First Horizon Earnings in Second Quarter | Economic news
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“Our second quarter results reflect the advantages of our diversified business model with strong growth in net sales before provisions. “
First Horizon recorded tax charges of $ 12.8 million for the second quarter, up from $ 34.5 million a year ago. The federal corporate tax rate was reduced from 35% to 21% effective January 1, 2018.
NPLs stood at $ 226 million as of June 30, compared to $ 189.8 million as of March 30 and $ 204.5 million as of June 30, 2019.
Net write-offs were $ 16.6 million as at June 30, compared to $ 7.2 million as at March 31 and $ 5.2 million as at June 30, 2019.
First Horizon’s loan and commission income streams are expected to increase significantly over the next four quarters after First Horizon finalized its $ 3.9 billion purchase of IberiaBank of Lafayette, Louisiana shares on July 2.
The bank is also completing the transfer of nine SunTrust Banks branches to the Triad this weekend and 30 in total. First Horizon paid $ 2.3 billion for SunTrust’s 28 branch portfolio in North Carolina, Georgia and Virginia.
The Winston-Salem branches affected by the divestiture are at 2006 S. Hawthorne Road, 2801 Reynolda Road, 101 S. Stratford Road and 4306 N. Liberty St. The other five branches are: 5361 US 158 at Bermuda Run; 1000 S. Main St. in Kernersville; 880, chemin Yadkinville in Mocksville; 2820 Old Hollow Road in Walkertown; and 200 S. State St. in Yadkinville.
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