Jerome Dodson's Parnassus Funds Comments on First Horizon National

- By Holly LaFon

First Horizon National ( NYSE:FHN ), a Tennessee-based regional bank, reduced the Fund's return by 91 basis points, as its stock yielded a negative total return of 32.3%. The shares fell after loan growth came in below expectations when it took longer than expected to integrate its acquisition of Capital Bank. With the integration now complete, loan growth should accelerate in 2019. We believe that First Horizon's dominant position in Tennessee, its diversified, low-risk loan book, and its new growth markets in the Carolinas and South Florida from the Capital Bank acquisition position the bank to outperform going forward.

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From Jerome Dodson (Trades, Portfolio)'s Parnass Funds' fourth-quarter 2018 shareholder letter.
This article first appeared on GuruFocus.

• Warning! GuruFocus has detected 3 Warning Signs with FHN. Click here to check it out.

• FHN 15-Year Financial Data

• The intrinsic value of FHN

• Peter Lynch Chart of FHN