FTN Financial Acquires Coastal Securities
October 27 2016 - 04:15PM
FTN Financial, a division of First Tennessee Bank, has agreed to
acquire Coastal Securities, a national leader in the trading,
securitization and analysis of Small Business Administration (SBA)
loans. Based in Houston, TX, Coastal also trades United
States Department of Agriculture (USDA) loans and fixed income
products and provides municipal underwriting and advisory services
to its clients.
Coastal’s government-guaranteed loan products, combined with FTN
Financial’s existing SBA trading activities, will establish an
additional major product sector for FTN Financial, resulting in
increased revenue and product diversification. Michael E.
Kisber, president of FTN Financial, said, “With more than 25 years
of experience, Coastal has established itself as a market leader in
the SBA and USDA product sectors. A pioneer in the pooling of
SBA loans, Coastal consistently ranks annually as one of the top
pool assemblers, providing important market liquidity to facilitate
ongoing government-guaranteed lending activities across the
nation.”
Chris LaPorte, chairman of Coastal Financial Holdings Inc.
(CFH), Coastal’s parent company, said, “The combination of our deep
expertise in government-guaranteed loan products with FTN
Financial’s extensive distribution platform, liquidity and capital
presents a compelling opportunity for our customers, employees and
shareholders. Our team at Coastal looks forward to joining
with FTN Financial to enhance our market position and create
further value for our clients.”
The transaction, which has been approved by the boards of
directors of First Horizon National Corporation (NYSE:FHN), FTN
Financial’s parent company, and CFH is subject to regulatory
approvals, the affirmative vote of CFH shareholders and other
customary closing conditions. Upon closing, the transaction
is expected to be immediately accretive to First Horizon’s earnings
per share, return on tangible common equity and return on assets.
A slide presentation outlining details of the transaction
will be available in the investor relations section of
www.FirstHorizon.com.
About FTN FinancialFTN Financial is an industry
leader in fixed income sales, trading and strategies for
institutional customers in the US and abroad. We also provide
investment services and balance sheet management solutions.
With an average daily trading volume of $5+ billion, FTN Financial
transacts business with more than 5,000 institutional customers and
approximately 50 percent of all US banks with portfolios of more
than $100 million.1 Learn more at www.ftnfinancial.com.
1 For 24-month period ending 4Q15.
FHN-G
CONTACT:
Investor Relations: Aarti Bowman, (901) 523-4017, aagoorha@firsthorizon.com
Media Relations: Sally Pace, (901) 435-7956, sally.pace@ftnfinancial.com
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