First Horizon keeps options open amid M&A uptick

Core Viewpoint - First Horizon is positioning itself to explore acquisition opportunities due to an improved regulatory environment for banks, with CEO Bryan Jordan expressing confidence in potential mergers in the future [2][3][4]. Regulatory Environment - The regulatory landscape has changed significantly, with faster deal approval timelines under the current administration, making it easier for banks to pursue acquisitions [3][4]. - The distinction around the $100 billion asset threshold for regulatory categories appears to be less rigid, suggesting potential for future adjustments [4]. Acquisition Strategy - First Horizon, with $83.2 billion in assets, is focused on "fill-in" acquisition opportunities within its 12-state Southern footprint, targeting institutions with strong deposit bases for cross-selling [5]. - There is an increasing trend among institutions considering future opportunities, indicating a potential for First Horizon to expand its market presence [5]. Financial Performance and Growth - The bank aims to achieve an adjusted return on tangible common equity of 15% or more, while maintaining investments to enhance profitability and keep acquisition options open [6]. - The bank's board previously rejected a $13.4 billion acquisition offer from TD Bank in early 2022, emphasizing the need to create maximum value for shareholders amidst regulatory uncertainties [7].