First Horizon in good shape, financial advisor says - WMC Action News 5 - Memphis, Tennessee

Reported by Lori Brown

First Horizon in good shape, financial advisor says

First Horizon, the parent company of First Tennessee bank, recently took a huge hit when it was hurt by a $220 million provision expense.

Despite the stock dive that first First Horizon, like many other banks, took Monday, financial experts say the bank is in better health than it was 12 months ago.

"I don't see anything in the numbers that suggest it's troubled," said Christopher Kelley, a General Partner at Commissum, an investment management company.  "One important factor is percent of capitol to assets."

No matter what happens to your bank, Kelley said, consumers shouldn't be worried.

"One fact that appears to be lost on everyone this week is that depositors have never not been able to get their deposits out of an FDIC insured institution," he said.

The FDIC has insured banks since the Great Depression.  During the last big downturn in the eighties and nineties, the system worked.

"It's important to remember the FDIC's insurance has held true for all these years," Kelley said. "Every depositor has gotten every dollar back that they've ever kept in an FDIC insured bank."

So how do you know if your money is protected?  FDIC member banks are insured for $100,000 in individual bank accounts, and $250,000 in IRAs.  Experts say the insurance means there is no need to withdraw your money, even if the bank is failing.

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