On Sep 2, 2016, we issued an updated research report on First Horizon National Corporation (FHN - Free Report) . The company’s growth prospects look promising with steady increase in loan balances, synergies from opportunistic acquisitions and cost control efforts. However the low rate environment and regulatory issues remain near-term concerns.
Period-end loans increased 10% year over year to $18.4 billion during second-quarter 2016. Management sees strong pipelines across the company’s footprint, including healthy demand for commercial loan in Middle Tennessee market.
Further, driven by a strong capital position the company has been able to pursue its acquisition strategy. In Jun 2016, First Horizon inked a deal to acquire restaurant franchise loans of $637 million from GE Capital. The transaction, set to close in third-quarter 2016, is expected to be immediately accretive to the company’s earnings per share.
Additionally, the company has been recording reduced expenses. During the first six month of 2016, its noninterest expense declined 23.7% year over year. Expenses are expected to be at the higher end of the $860–$870 million range during 2016. Management noted that improved performance in capital markets operations may drive compensation expenses higher. Nevertheless, it remains focused on expense management through process improvement, branch network optimization and other efficiencies. Notably, it anticipates $4–$6 million in annual run rate savings as a result of its ongoing initiatives.
Shares of this Memphis, TN-based bank gained more than 18% over the past six months.
FIRST HRZN NATL Price
Among other concerns, the prevailing stringent regulatory landscape not only limits business growth opportunities for First Horizon, but also tends to increase compliance costs.
Over the past 30 days, Zacks Consensus Estimate remained stable at 94 cents and $1.05 per share for 2016 and 2017, respectively.
First Horizon currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some top-ranked stocks in the finance space include Meta Financial Group, Inc. (CASH - Free Report) , Enterprise Financial Services Corp. (EFSC - Free Report) and Regional Management Corp. (RM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
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On Sep 2, 2016, we issued an updated research report on First Horizon National Corporation (FHN - Free Report) . The company’s growth prospects look promising with steady increase in loan balances, synergies from opportunistic acquisitions and cost control efforts. However the low rate environment and regulatory issues remain near-term concerns.
Period-end loans increased 10% year over year to $18.4 billion during second-quarter 2016. Management sees strong pipelines across the company’s footprint, including healthy demand for commercial loan in Middle Tennessee market.
Further, driven by a strong capital position the company has been able to pursue its acquisition strategy. In Jun 2016, First Horizon inked a deal to acquire restaurant franchise loans of $637 million from GE Capital. The transaction, set to close in third-quarter 2016, is expected to be immediately accretive to the company’s earnings per share.
Additionally, the company has been recording reduced expenses. During the first six month of 2016, its noninterest expense declined 23.7% year over year. Expenses are expected to be at the higher end of the $860–$870 million range during 2016. Management noted that improved performance in capital markets operations may drive compensation expenses higher. Nevertheless, it remains focused on expense management through process improvement, branch network optimization and other efficiencies. Notably, it anticipates $4–$6 million in annual run rate savings as a result of its ongoing initiatives.
Shares of this Memphis, TN-based bank gained more than 18% over the past six months.
FIRST HRZN NATL Price
Among other concerns, the prevailing stringent regulatory landscape not only limits business growth opportunities for First Horizon, but also tends to increase compliance costs.
Over the past 30 days, Zacks Consensus Estimate remained stable at 94 cents and $1.05 per share for 2016 and 2017, respectively.
First Horizon currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some top-ranked stocks in the finance space include Meta Financial Group, Inc. (CASH - Free Report) , Enterprise Financial Services Corp. (EFSC - Free Report) and Regional Management Corp. (RM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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