MEMPHIS, Tenn., Sept. 25, 2007 (PRIME NEWSWIRE) -- First Horizon National Corp.'s (NYSE:FHN) principal banking subsidiary, First Tennessee Bank National Association, has reached agreements for the sale of all 34 of its First Horizon Bank branches. Financial details of the agreements were not disclosed, and all of the sales are expected to close by first quarter 2008. In aggregate, these transactions are expected to result in a small gain for First Horizon. Each of the agreements is to purchase certain loans and fixed assets, including the branch locations, and to assume all of the deposit relationships of the First Horizon Bank branches being purchased.
-- M&T Bank., a subsidiary of M&T Bank Corp. (NYSE:MTB) of Buffalo,
N.Y., has signed a definitive agreement to purchase the 13 First
Horizon Bank branches in Northern Virginia and Maryland.
-- Sterling Bank (Nasdaq:SBIB) of Houston, Texas, has signed a
definitive agreement to purchase the 10 branch locations in the
Dallas/Ft. Worth Metroplex market.
-- Nine Georgia branches of First Horizon Bank in the Atlanta market
will be purchased by Fifth Third Bank (an indirectly wholly owned
subsidiary of Fifth Third Bancorp, (Nasdaq:FITB)) of Cincinnati.
-- The two remaining Georgia branches -- in Dallas, Ga., and
Douglasville, Ga., -- are being purchased by wholly owned
subsidiaries of FMCB Holdings Inc. of Senoia, Ga.
The sales are part of an ongoing effort at First Horizon to redeploy capital to its higher-return businesses. On July 19, First Horizon announced that it would pursue the sale, closure or consolidation of the 34 First Horizon Bank branches in its four full-service banking markets outside Tennessee. First Horizon Home Loans will continue to offer mortgage and construction financing in these markets.
"The prompt and successful negotiation of these sales is a testament to the work that our First Horizon Bank employees did in building their business in these markets," said Charles Burkett, president of Tennessee and national banking for First Horizon National Corp. "The sale will allow us to focus capital on businesses that are creating higher returns for us right now."
About First Horizon
The 11,000 employees of First Horizon National Corp. (NYSE:FHN) provide financial services to individuals and business customers through hundreds of offices located in more than 40 states. The corporation's three major brands -- FTN Financial, First Horizon and First Tennessee -- provide customers with a broad range of products and services including:
-- Capital markets, one of the nation's top underwriters of U.S.
government agency securities
-- Mortgage banking, one of the nation's top mortgage originators and
recipient of consecutive awards for servicing excellence from
Fannie Mae and Freddie Mac
-- Retail/commercial banking, with the largest market share in
Tennessee and one of the highest customer retention rates of any
bank in the country
FHN has been recognized as one of the nation's best employers by AARP, Working Mother and Fortune magazines. FHN also was named one of the nation's 100 best corporate citizens by CRO magazine. More information can be found at www.fhnc.com.
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