First Horizon National posts quarterly loss

July 20 Fri Jul 20, 2012 7:20am EDT

July 20 (Reuters) - First Horizon National Corp posted a wider-than-expected second-quarter loss as it incurred a pre-tax charge related to mortgage buyback demand from government sponsored entities Fannie Mae and Freddie Mac.

Investors have been pressing U.S. banks to buy back now-soured home loans made during the housing boom. The loans were bundled into mortgage-backed securities and bought by investors, who now allege the loans do not meet guarantees made by the banks at the time they were sold.

The lender posted net loss attributable to common shareholders of $124.8 million, 50 cents per share, compared with net income of $42.6 million, or 16 cents per share a year earlier.

Analysts on average expected the bank to incur a loss of 49 cents per share, according to Thomson Reuters I/B/E/S.

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California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

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