FFHNFirst Horizon Corporation

First Horizon is a southern regional bank whose sale collapsed and returned it to independent life.

Deposits fund corporate loans, commercial real estate and mortgages; the rate spread supplies most of the result. Geography works for the bank: the South is gaining population and businesses, which increases both deposits and loan demand.

The collapsed takeover by a large foreign bank left the company having to explain its standalone strategy afresh — and with capital it directed into buybacks. A distinct line is lending to homebuilders and specialty finance. Risks: commercial real estate, deposit costs and book quality in a downturn. Fee income — treasury services, wealth management and fixed income sales to smaller banks — smooths the rate cycle and is unusually large for a bank this size. A dividend is paid.