First Horizon National Corp. (FHN:US), Tennessee’s largest bank by market share, advanced after saying it was setting aside additional reserves to repurchase mortgages from government-sponsored enterprises.
First Horizon climbed 3.8 percent to $8.21 at 4 p.m. in New York, the biggest gain in almost three weeks. The Memphis-based firm’s shares have climbed 2.6 percent this year, compared with a 5 percent jump in the Standard & Poor’s 500 Index.
First Horizon will take a $272 million charge in the second quarter, primarily to repurchase mortgages from Fannie Mae and Freddie Mac, the lender said in a statement after yesterday’s market close. The additional reserves, along with $161 million set aside earlier, should cover current and future requests, the firm said.
“We believe the event represents a significant milestone in putting the GSE exposure behind them,” Compass Point Research & Trading LLC analysts led by Mike Turner said today in a note.
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