Quote:
Originally Posted by petekoch
Damn, that's beaten up. At a 7-year low, with a very inviting yield (although barely covered by current earnings). This is one company where a share buy-back program makes sense. I've run across this one before.
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This is one good bank. In fact, the dominant bank in TENN, and it was all done through organic growth.
Morningstar calls FHN a great bank with a lousy mortgage business. Projected earnings not expected to cover dividend, but dividend still appears safe for now.
This looks like an excellent turnaround play for investors with 2-5 year horizons.
BTW, margins on sales of mortgages fell from 1.04% in 2004 to 0.76% in 2ndQ 2007. Doesn't sound like much, but that's about a 40% hair cut in profits. Says a lot about the mortgage and banking biz, doesn't it?