First Horizon Leveraging Rate Sensitivity, Credit Quality, And M&A Synergy Ahead Of The Expected TD Bank Deal Close

It helps to have powerful friends, and in the case of First Horizon (NYSE:FHN), increased confidence in the likelihood of Toronto-Dominion Bank (TD) closing its deal for First Horizon has helped First Horizon outperform in what has been a poor year for regional banks (and banking in general). At the same time, First Horizon hasn’t hurt its standalone credentials (should the deal somehow fall apart) with signs of improved execution over the last few quarters.

I believe TD Bank will get the final go-ahead from regulators to close its acquisition of First Horizon over the next three months or so, and I think there’s a reasonable chance that the close will be after the November 27 deadline that triggers additional payments to shareholders. While the current spread between today's price and the deal price doesn't promise a scintillating return, it's not bad for investors who don’t have more pressing ideas today.

 

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 First Horizon Leveraging Rate Sensitivity, Credit Quality, And M&A Synergy Ahead Of The Expected TD Bank Deal Close