It was all too common during the bubble years that began almost a decade
ago to see quality community or regional banks de-prioritize their
traditional businesses to reach for the fool’s gold offered by riskier
lending. Very few of those stories had happy endings, and many ended
like First Horizon National (NYSE:FHN), where the bank saw significant lending losses, putbacks, and the need to raise fresh capital to stay in business.
Now things are settling down and getting back closer to normal. First
Horizon has retrenched around its core operations and is looking to
reduce its non-strategic lending activity, while also looking to make
the most of its sizable market share in Tennessee. The only real
drawback to the story, aside from the risk of higher putbacks, is the fact that valuation already anticipates quite a lot of improvement.
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http://www.investopedia.com/stock-analysis/050613/simpler-looks-better-first-horizon-fhn-sti-rf-bac-usb-fitb.aspx
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