Memphis-Based First Tennessee Bank Broadens Its Horizons Nationally

The Commercial Appeal, Memphis, Tenn

David Flaum

January 22, 2003

Jan. 22--In an effort to convey its national presence to investors, First Tennessee National Corp. is asking its shareholders to approve a name change to First Horizon National Corp.

Shareholders are scheduled to vote on the name change on April 20.

"Name changes bring up questions of stability," said James Dettore, president and chief executive officer of Brand Institute Inc. "You need to reassure your current customers that the company is sound, and it's a good time to do it, when the company is performing at all-time highs."

First Horizon gives the image of a company that is out front, looking forward to change and consists of real words, not a made-up name that people have to scratch their heads to figure out, Dettore said.

"It sounds respectable," said Danny Altman, creative director of A Hundred Monkeys, a brand consulting firm in Mill Valley, Calif. "It sounds legitimate.

But "if all they're concerned about is investors, investors don't pay a whole lot of attention to a name," he said. "They're interested in numbers."

First Tennessee Bank will remain the name for the company's flagship institution in the Volunteer State.

The holding company name-change plan surfaced last summer as executives grappled with ways to illustrate First Tennessee's growing national presence -- more than half of its customers live outside of Tennessee.

At the time, First Tennessee executives hinted that the new moniker would probably not be the same as either of the company's other subsidiaries, First Horizon mortgage or FTN Financial.

But research showed some of the reservations about the First Horizon name that it was perceived only as a mortgage company and that its image might be tarnished when the refinance boom, and its revenues, diminished -- weren't concerns, said Ken Glass, chairman and chief executive officer.

Now, with refinancing off sharply and First Horizon still making money, he said, "The stars lined up pretty good on this timing."

First Horizon is not only the mortgage company name, but also it extends to the company's banks outside Tennessee and its merchant services arm, which processes credit card payments for the travel and entertainment industries.

"It's like Synovus 10 years ago," said Chris Marinac, analyst for FIG Partners in Atlanta.

The company, then Columbus Bank and Trust Co., was growing beyond its Georgia base and wanted its name to reflect that.

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(c) 2004, The Commercial Appeal, Memphis, Tenn. Distributed by Knight Ridder/Tribune Business News