The future looks bright 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) – Get the report from First Horizon Corporation. First Horizon’s shares are up nearly 20% over the past year.

Jordan told Cramer that First Horizon is in an excellent position to take advantage of rising interest rates. 65% of its loan portfolio is re-evaluated monthly and will generate more income as rates rise. The company continues to benefit from strong deposit rates and expanding margins, both of which paint an optimistic picture for the bank in 2022 and 2023.

On Real Money recently, First Horizon was one of several large regional banks identified by Ed Ponsi as good ways to play on rising rates while limiting exposure to global financial turmoil. “The answer is to keep it local, opting for a portfolio of US regional banks,” Ponsi wrote, noting that First Horizon is one of S&P Regional Bank SPDR’s top holdings. (KRE) – Get the SPDR S&P Regional Banking ETF report.

Jordan told Cramer he doesn’t expect to see a drop in loan demand following small interest rate hikes. He said that while some sectors, such as energy and oil drilling, are not yet experiencing a recovery in activity, other sectors, such as transport and distribution, continue to invest in their businesses to respond to the growing demand.

First Horizon’s holding company, First Horizon National Corporation, is one of the 50 largest bank holding companies in the United States by asset size and includes the following business segments:

  • 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 trading name for the wealth management services available from First Horizon Bank

Jordan concluded by saying he was confident the Federal Reserve would be successful in reining in inflation, especially as many Covid-related issues and disruptions will be resolved over the coming months.

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