First Horizon Executing Well, The Next Step Is Up To The Regulators

Jan. 26, 2023 4:08 AM ETFirst Horizon Corporation (FHN)TD, TD:CA6 Comments
Stephen Simpson profile picture
Stephen Simpson


  • First Horizon's fourth quarter results showed good spread leverage and very good operating leverage, with management reaping the promised benefits from the IBERIABANK deal.
  • Loan growth was sluggish and I wonder if the bank is seeing loan share loss in North Carolina to aggressive rivals like Pinnacle.
  • Funding costs remain appealingly low, but the trading and mortgage banking business are struggling through cyclical downturns.
  • I continue to expect the successful closure of the proposed deal with Toronto-Dominion Bank, but the upside from here is not really worth the risk if the deal were to collapse.
Beautiful dream-like photo of flying above the clouds

Vitalii Petrushenko

It has taken a little longer than shareholders would have preferred, but First Horizon (NYSE:FHN) is starting to show real evidence of the promised benefits from its merger with IBERIABANK back in 2020. Unlike many, if not most, large-scale bank transactions, it

This article was written by

Stephen Simpson profile picture
Stephen Simpson is a freelance financial writer and investor. Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds); now a semi-retired raccoon rancher. That last part isn't entirely true. Probably.

Disclosure: I/we have a beneficial long position in the shares of FHN, TFC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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