First Horizon National (NYSE:FHN) Faces Many Challenges in 2011

While First Horizon National (NYSE:FHN) has removed the yoke of the TARP payment from their neck, they face a number of challenges in 2011, including $5.9 billion in non-strategic loans pressuring its earning asset growth.

Barclays noted, "Our rating on First Horizon National reflects our concern over the potential for its $5.9 billion in "non-strategic" loans (35% of loans) to pressure its earning asset growth as well as its above average mortgage repurchase exposure. However, its strong capital levels (T1C of 11.7%) post TARP repayment should offer support for the shares in anticipation of eventual redeployment...We expect FHN to report 4Q10 EPS of $0.08 versus our prior $0.09 forecast and consensus of ($0.02)."

Barclays maintains an "Equalweight" rating on First Horizon National, which closed Tuesday at $12.11, up $0.10, or 0.83 percent. Barclays has a price target on them of $15.