Chattanooga, Tenn.-Area's Biggest Banks Report Jump Operating Earnings.

Knight Ridder/Tribune Business News, January, 2002

Chattanooga Times/Free Press Knight Ridder/Tribune Business News

Jan. 17--The 11 interest rate cuts last year by the Federal Reserve may have yet to revive the U.S. economy, but they did help generate record earnings for Chattanooga's biggest banks.

Spurred by a boom in mortgage refinancing last year, First Tennessee National Corp. reported Wednesday a 40 percent jump in operating earnings last year. The Memphis-based banking company, which lost $6.5 million on mortgage banking in 2000, earned $95.1 million last year from its $26.3 billion of morgage loan originations. The volume of mortgage loans at First Tennessee jumped 77 percent last year.

The turnaround in mortgage lending helped First Tennessee earn $305.3 million, or $2.32 per share,...