First Horizon National Corp (FHN.N), the largest bank in Tennessee, reported a narrower-than-expected quarterly loss, helped by a 46 percent decrease in provision for bad loans.
Net loss available to common shareholders was $52.9 million, or 24 cents a share, compared with 125.1 million, or 58 cents a share in the year-ago period.
The company posted a loss of 18 cents a share, excluding a goodwill impairment charge, compared with analysts' expectations of a loss of 32 cents a share, according to Thomson Reuters I/B/E/S.
The Memphis-based company has been battered by losses on residential real estate and commercial loans as house prices have slumped amid the recession.
The bank had received an $866 million cash infusion under the U.S. government's Troubled Asset Relief Program in October last year.
Provision for bad loans fell to $185.0 million from $340.0 million. Net charge-offs were $201.7 million in the quarter.
Shares of the company closed at $13.49 Thursday on the New York Stock Exchange. The stock has gained 36 percent in value since January.