SECURITIES AND EXCHANGE COMMISSION

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC   20549
---------------------------------------------------------------------------------------------- 

FORM 8-K 

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

 

Date of report (Date of earliest event reported) - April 27, 2004

 

FIRST HORIZON NATIONAL CORPORATION
(Exact Name of Registrant as Specified in Charter)


TENNESSEE 000-4491 62-0803242
(State or Other Jurisdiction
of Incorporation)		 (Commission
File Number)		 (IRS Employer
Identification No.)
 
165 MADISON AVENUE
MEMPHIS, TENNESSEE		 38103
(Address of Principal Executive Office) (Zip Code)

Registrant's telephone number, including area code - (901) 523-4444

First Tennessee National Corporation
(former name or address, if changed since last report)

ITEM 7.Financial Statements and Exhibits

(c)  Exhibits 

The following exhibit is furnished pursuant to Item 9, is not to be considered "filed" under the Securities Exchange Act of 1934, as amended (“Exchange Act”), and shall not be incorporated by reference into any of First Horizon National Corporation’s (“Corporation”) previous or future filings under the Securities Act of 1933, as amended, or the Exchange Act. 

Exhibit #           Description

 99.1                Second Quarter 2004 Analyst Packet

 

ITEM 9.           REGULATION FD DISCLOSURE

Furnished as Exhibit 99.1 is a copy of First Horizon National Corporation's Second Quarter 2004 Analyst Packet which is scheduled to be released April 28, 2004. 

SIGNATURES 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. 

 

                                                FIRST  HORIZON NATIONAL CORPORATION 

Date: April 27, 2004             By:       /s/ Marlin L. Mosby III                                   
                                               Name: Marlin L. Mosby III
                                               Title: Executive Vice President and Chief Financial Officer 

Exhibit Index 

The following exhibit is furnished pursuant to Item 9 is not to be considered "filed" under the Exchange Act, and shall not be incorporated by reference into any of the Corporation's previous or future filings under the Securities Act of 1933, as amended, or the Exchange Act.

Exhibit #           Description 

99.1                 Second Quarter 2004 Analyst Packet

1

SECOND QUARTER ANALYST VISIT

2

FORWARD LOOKING STATEMENT DISCLOSURE
This document contains forward-looking statements involving significant risks and uncertainties. A number of factors could cause actual results to differ materially from those in the forward-looking information. These factors are outlined in the recent earnings press release and in more detail in the most current 10-Q and 10-K and herein. First Horizon disclaims any obligation to update any of the forward-looking statements that are made from time to time, to reflect future events or developments.

2004 discussions are based on management’s projections and estimates.

All sources are based on internally generated reports unless otherwise noted.

3

1st QUARTER EARNINGS TRENDS

1Q03 1Q04

EPS

$.91 $.92

ROE

27.7% 25.6%

ROA

2.07% 1.93%

After-tax Income

$119 $119

4

1ST QUARTER 2004 EARNINGS HIGHLIGHTS

5

RELATIVE EARNINGS PERFORMANCE

2002 2003 2004 3 Year
EPS Growth Actual Actual Outlook Average

First Horizon National Corp 19 % 25% 0% to 8% 15% to 17%
High Performers 13% 7% 12% 11%
Top 50 12% 7% 9% 8%

Source: First Call

6

2004 EARNINGS TRANSITION

> Reported 2003 Earnings                                                                                           $ in millions

    Favorable operating environment                                                                   (225-275)

    • Loss of excess REFI earnings
    • Fixed income sales slow

    Planned Operational Offsets                                                                          +200-225

    • Reduced discretionary investing
    • Servicing Portfolio Profitability
    • Returns on discretionary investments
    • Balance sheet repositioning

    Continued Strategic Growth Opportunities                                               +110-150
    Potential Earnings Issues                                                                                    (0-20)

> Growth continues, but slows to between industry average and outlook for High Performers

Reflects management's current outlook for 2004 operating environment

7

2004 MARKET EARNINGS EXPECTATIONS

Market Expectations for Industry Peer Growth Rates 9% 12%
Resulting FHN earnings $3.95 $4.05

Market Consensus EPS for FHN $3.83

Market Expected Growth Rate for FHN:

6%

  Industry Growth
  High Performer Growth

Source: First Call

8

CURRENT ISSUES

  • Interest Rate Lock Commitment Ruling
  • Trust Preferred loses Tier 1 equity treatment

9

STRATEGIC GROWTH INITIATIVES
"Continuing High Performance"

10

LONG-TERM EARNINGS DRIVERS
Five Year Horizon

> Industry Growth Assumption                                                         7% to 8%

National Expansion Strategy                                               +3% to 6%

  • Sales Force Growth
  • Cross-Sell
  • Broadened Product Offerings

Enterprise-Wide Opportunities                                           +2% to 3%
Efficiency Gains                                                                     +1% to 2 %

    > FHN's High Performing Growth                                                   13% to 19%

    11

    SALES FORCE GROWTH

    2003

    		2004
    Total Sales Force Growth 25% 15%

    > Historical Industry Growth Comparison of 2%*

      Note: Year-End to Year-End
      *Source: Regional Financial Associates of Financial Services Employment Growth

      12

      NATIONAL EXPANSION
      Statistical Trends

      2002 2003 1Q04   Improvement
      Banking HHs (000's) 83.7 155.8 164.6 40% Growth

      % of HHs with Banking Products 19% 30% 31% 12 Percentage Points

      National Financial Services
      Revenue in First Horizon
      Home Loans      		 $133 $151 $232* 32% Growth

      Note: First Horizon Home Loans revenue unrelated to servicing and origination

      *Annualized 1Q04 results

      13

      ENTERPRISE-WIDE OPPORTUNITIES

      • $22 million in earnings were created in 2003 through securitization of mortgage product through FTN Financial, using FTN Financial for investment banking services, and various product related operational initiatives.
      • + $10-20 million incremental earnings in 2004, as securitization of third party HELOC origination is initiated.
      • Cumulative earnings opportunity $50 million plus over long-term strategic horizon.

      14

      EFFICIENCY GAINS

      • First Tennessee initiatives implemented
      • First Horizon productivity enhancements
      • Leverage shared services and corporate support
      • Employee-related costs slowed

      15

      CONCLUDING REMARKS

      16

      MORTGAGE AND DEPOSITORY FIXED INCOME CONTRIBUTION TO EARNINGS

      1Q 03 4Q 03 1Q 04

      First Horizon:
         Mortgage 62% 35% 33%
         Financial Services 3% 10% 18%

      FTN Financial:
         Deposit-Fix Inc 12% 7% 8%
         NonDeposit-Fix Inc 6% 5% 6%
         Additional Products 7% 11% 7%

      Reflects management's current outlook for 2004 operating environment

      Note: FTN Financial assumes constant margins across products while First Horizon incorporates specific product allocations

      17

      EPS PROGRESSION

      The following is a brief text description of a graph that has been omitted. The graph represents EPS progression from fourth quarter 2001 to first quarter 2004. FHN quarterly EPS begins with $.68 and ends with $.92 showing an increase throughout the quarters. FHN trailing annual EPS begins with $2.42 and ends with $3.63 and mostly increases during that timeframe. Trailing EPS at a 10 percent growth rate begins with $2.42 and ends with $3.02 and steadily increases during that time. The 10 percent growth is based on First Call long term growth estimates.

      18

      STOCK PRICE IMPACT

      The following is a brief text description of a graph that has been omitted. The graph represents fourth quarter 2001 to first quarter 2004. FHN period-end stock price begins with $36.26 and ends with $46.38 and goes up and down within that timeframe. Stock Price at FHN EPS growth and industry P/E begins with $36.30 and ends with $54.45 and mostly increases that timeframe. Stock price at 10 percent growth and industry P/E begins with $36.30 and ends with $45.33 and steadily increases during that timeframe.

      Based on an industry P/E of 15.

      19

      CHANGE IN HOLDING COMPANY NAME

      First Horizon National Corporation

      20

      2004 KEY ASSUMPTIONS

      • Short Term interest rates increase 100 bps in the second half of the year
      • Current yield curve steepness remains throughout the year
      • GDP growth of 4.3% for the year
      • Mortgage originations of $2.5 trillion for the year
      • Reasonable competitive pricing
      • Asset Quality relatively stable