First Horizon National no longer expects a financial gain from the sale of the First Horizon Banks in the first quarter of 2008, and realizing the full $30 million annual pre-tax benefit from divesting all of the First Horizon Banks will be delayed. However, because all of the other First Horizon Bank branches have sold, First Horizon still expects approximately $25 million in annual pre-tax benefit will be realized by the second quarter of 2008.
Charles Burkett, First Horizon president of Tennessee and national banking, said that First Horizon has recently determined that the parties had not reached agreement concerning a key term of the contract. The issue was not related to the performance or quality of First Horizon’s operations.
Mr Burkett added: We will work closely with our customers and employees in Atlanta to ensure a smooth continuation of service and to maintain the high quality of our operations. Customers have been notified that there will be no change to any of their First Horizon Bank accounts. We will explore the strategic alternatives for what is an attractive franchise in these First Horizon Bank branches in Atlanta.
