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1st Tennesse Enjoys Cross-Sell Potential.(First Tennessee Natioanl Corp.)(Brief Article)

Mortgage Servicing News

| September 01, 2002 | COPYRIGHT 2002 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

First Tennessee's reorganization of its mortgage operation, which places a new emphasis on cross- selling to the bank's customers, has resulted in a "more balanced business mix" that reduces rate sensitivity, according to analysts at Sandler O'Neill.

Analyst Gerry Cronin, whose team met with senior management of First Tennessee recently, said in a recent report that the company's management has been making efforts to achieve a better balance between its rate-sensitive and nonrate-sensitive product lines.

Sandler O'Neill still expects First Tennessee's growth rate to slow once interest rates move up, but it now believes that double-digit earnings-per-share growth is achievable in a rising rate environment.

"In light of the continued strength in the traditional mortgage banking and capital markets businesses, ...

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