In an effort to combat the declining top line, First Tennessee
Bank - a subsidiary of
First Horizon National Corp.
) - will expand its footprint and develop its services in the
states of NC, SC and VA.
Additionally, the bank will move its office located in Raleigh,
NC to a larger and more important location. The new Raleigh
office will be headed by Ken Reece, Senior Vice President of the
company. It will offer increased services and create new
relationships in its private client, wealth management, corporate
and commercial lending, and commercial real estate operations. In
mid April, First Tennessee anticipates to move into its new
office at Oberlin Road.
First Tennessee will add jobs to cater to the influx of business,
especially in the private client and commercial banking
operations. Management believes that the bank's success in the
Mid-Atlantic Region is primarily attributable to the presence of
experienced professionals along with a diverse range of financial
products. Further, the flexible framework, coupled with
consumer-friendly approach, has driven the bank's success.
Recently, First Tennessee Bank forayed into Mid-Atlantic Region
to recreate the success of the existing locations in West, Middle
and East Tennessee. Management believes that the regional bank is
focused on opportunistically diversifying its footprints in
regions with vast growth potential.
We believe that First Tennessee Bank's venture into newer
locations is part of its strategy to mitigate the shrinking
revenue base, regulatory issues and tepid economic recovery given
the low interest rate environment, as these factors would become
the headwinds in the short term.
Further, First Tennessee Bank's endeavor to lower its exposure to
problem loans is impressive. It is also aiming at controlling
costs and improving long-term profitability by focusing on
strengthening its core Tennessee banking franchise, which would
augur well going forward.
First Horizon retains a Zacks Rank #3 (Hold). Other regional
banking stocks that are performing better include
Customers Bancorp, Inc.
Monarch Financial Holdings, Inc.
Bank of Kentucky Financial Corp.
). All these companies carry a Zacks Rank #1 (Strong Buy).
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