First Horizon National Corp has warned investors that its losses from bad debt were likely to be much higher than previously expected.

The announcement on Wednesday initially led to a fall in share prices of First Horizon National Corp which dropped as low as $10.51. However later in the session, its stocks rallied and finally closed at $11.74 which was an overall rise of 5 cents. Over the last year, the bank’s stocks have traded between $4.52 and $31.29.

First Horizon National Corp is a regional bank based in Memphis, Tennessee. Last Tuesday, bank officials revealed that continuing adverse market conditions meant that it net charge-offs for the year would rise to $485 million which was an additional burden of $100 million from its previous estimate of $385 million. Various factors like the state of the housing market, the potential resolution of bad loans as well as overall economic conditions would eventually determine the quantum of final losses.

First Horizon has already sold off around 250 of its mortgage production offices outside the state as well as its loan origination and servicing platforms to MetLife Bank. This deal covered assets worth $380 million and would add another $35 million to $50 million in charges to the company’s losses.