First Tennessee Bank’s parent company is trying to make itself leaner and more versatile by limiting the kinds of business it does. But while officials say the restructuring will ultimately be good for First Horizon’s finances, the short term costs are high.
In the last three months of 2009, First Horizon cancelled contracts, cut back on its mortgage banking, and closed businesses and locations outside of Tennessee. The cutbacks created 31 million dollars in fees and lost income.
In a presentation to investors, CEO Bryan Jordan acknowledged the high initial cost of the changes, but said they should begin to pay off soon.
“We anticipate a gradually improving bottom line as we move through the year, assuming the economic recovery remains intact.”
In all, First Horizon lost 70-point-6 million dollars in the fourth quarter, compared to 63-million during the same period the year before. The company’s revenues dropped 18-percent.
First Horizon took 866 million dollars in federal bailout funds two years ago. When asked if the money will be returned in 2010, Jordan said that decision that hasn’t been made yet.
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