First Horizon Bank: SBA Lending Record

First Horizon Bank at a glance

First Horizon Bank shows 485 loans in SBA's FY2017 to FY2026 data, with $512.5 million in gross approvals, all of it SBA 7(a) and none of it SBA 504. SBA lists the holder under TN. These figures are SBA's record of loans the lender holds or last held; the agency carries the guarantee, not the holder, and a 7(a) loan is booked to its present or final holder.

Florida, Louisiana, Tennessee

Florida leads with 94 loans, Louisiana follows with 88, Tennessee has 83 and Georgia 60. Of the 485 loans, 349 have no named class. Among the named ones, the full-service restaurant has 25, the fitness center 16, automotive repair 14, medical offices 13 and the limited-service restaurant 12.

Approvals that fell away, loans written off

First Horizon Bank shows a cancellation floor of 9.7% for FY2017 to FY2024 approvals. The cancellation figure that includes undisbursed loans does not appear under a rule of our own, because the loans behind it are too thin; so nothing here says zero. Loan Analytics withholds the cohort charge-off rate under its own rule, given fewer than 30 loans in the cohort; the blank implies no zero.

A study in this territory

A borrower in Florida, Louisiana or Tennessee finds the most depth in the file. A full-service restaurant study should follow seat turnover, check size and the rent the location can bear. A fitness study turns on membership depth and churn. An automotive shop study counts bays, technician capacity and parts margin. A medical office study looks at provider capacity, payer mix and visit volume. With 349 loans unclassified, other property types have little precedent and need their own market evidence.

Cancellation as a planning point

With a cancellation floor of 9.7%, the practical lesson is that approval is not funding. A study should leave time and cost allowance for slippage and should show debt service coverage in a base case and a weaker case, ending in a value the appraisal will bear.

Limits of a short file

This record is 485 loans and $512.5 million, of which 349 loans carry no class and several rates are suppressed. That leaves the 9.7% cancellation floor as the only outcome measure, and the state table of 94, 88, 83 and 60 as the main guide to where the holdings sit. A borrower should read the page as background, and should expect a study to supply the evidence that the page cannot.