The future looks great from the perspective of Memphis-based First Horizon National Bank.
On a recent episode of "Mad Money," Jim Cramer spoke with D. Bryan Jordan, chairman, president and CEO of First Horizon National Bank (FHN). Shares of First Horizon have risen almost 20% over the past year.
Jordan told Cramer that First Horizon is in a great position to capitalize on rising interest rates. A full 65% of its loan portfolio reprices monthly and will generate more revenues as rates rise. The company continues to see strong deposit rates and margin expansion, both of which paint an optimistic picture to the bank in 2022 and into 2023.
On Real Money recently, First Horizon was one of several big regional banks identified by Ed Ponsi as good ways to play rising rates while limiting exposure to global financial turmoil. "The answer is to keep it local, by going with a portfolio of regional U.S. banks," Ponsi wrote, noting that First Horizon is one of the top holdings in the S&P Regional Bank SPDR (KRE).
Jordan told Cramer he did not expect to see a decline in loan demand as a result of small interest-rate hikes. He said while some sectors, like energy and oil drilling, are not yet seeing an uptick in activity, other sectors, like transportation and distribution, are continuing to invest in their businesses to meet growing demand.
First Horizon’s holding company, First Horizon National Corporation, is one of the top 50 largest bank holding companies in the U.S. in asset size and includes the following business lines:
- First Horizon Bank, founded in 1864, serves customers in Florida, North Carolina, South Carolina, Virginia, and Tennessee.
- FHN Financial, a capital markets subsidiary
- First Horizon Advisors, Inc., the trade name for wealth management services available from First Horizon Bank
Jordan concluded by saying that he has confidence that the Federal Reserve will be successful in tamping down inflation, especially as many Covid-related issues and disruptions get resolved over the coming months.
