Nomura Securities Maintains a 'Neutral' on First Horizon National (FHN); Mortgage Noise, After All These Years

Nomura Securities maintains a 'Neutral' on First Horizon National (NYSE: FHN) price target of $11.00.

Nomura analyst, Brian Foran, said, "Three years after divesting its mortgage business, First Horizon’s results are still dominated by mortgage noise. The headline EPS miss was driven by an increased charge for mortgage putbacks, while the revenue beat was driven by a) high capital markets revenue as FTN capital markets benefited from banks repositioning their bond book, and perhaps a little inventory write up as well, and b) more than 100% of loan growth both this quarter and last was driven by FHN’s mortgage warehouse finance division within corresponding banking. Specifically: 1) Headline miss driven by higher repurchase provision; 2) Loan growth, sort of; 3) Starting to deploy capital; and 4) Credit improvement continues."

For more ratings news on First Horizon National click here and for the rating history of First Horizon National click here.

Shares of First Horizon National closed at $6.56 yesterday.

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