Tennessee’s largest bank is reaping the rewards of its merger with Louisiana’s largest bank last summer to boost first-quarter operating profits, revenues and share price.
The First Horizon Bank on Wednesday reported quarterly earnings of 51 cents per share, beating the consensus estimate of Wall Street analysts to 37 cents per share during the three-month period. First quarter 2021 results also exceeded comparable earnings by 5 cents per share a year ago. Results were adjusted for one-time expenses related to First Horizon’s buyout last year of Iberiabank in Lafayette, Louisiana.
First Horizon CEO Bryan Jordan said the bank was able to generate around $ 10 million in annual revenue after securing $ 400 million in commercial loan commitments. Many of these relationships relate to asset-backed loans and equipment finance products offered by Iberiabank.
First Horizon did not include revenue opportunities in its projections for the $ 3.9 billion merger, which closed in July.
First Horizon reported revenue of $ 806 million for the quarter ended March 2021, beating the consensus estimate by 4.6%.
“Our balanced business model and countercyclical business continued to perform well in the first quarter,” Jordan said. “Credit quality has improved and our spending discipline has resulted in additional cost savings.”
Jordan said he expects the US economy to improve through 2021 and outperform the national average in the southeastern states where First Horizon operates, including Tennessee, Georgia, in Florida and Louisiana.
In Chattanooga, where First Horizon is the largest bank, the first quarter results mirror those of the company, according to Jay Dale, president of the Southeast Tennessee market.
“We could not have imagined last March that we would have such strong results in the first quarter of 2021 as the pandemic exits,” Dale said. “Our economy continues to recover and our customers are cautiously optimistic for the remainder of the year.”
In response to quarterly results, shares of First Horizon rose more than 5.4% on Wednesday when trading on the New York Stock Exchange. First Horizon stock has risen 39.5% so far in 2021 and is up over 136% from its price a year ago at this time.
First Horizon directors authorized a $ 500 million share buyback in January and company officials have said they plan to make such share buybacks from time to time if they deem it appropriate. .
“We are optimistic about ourselves so we expect to buy back our stocks opportunistically,” Jordan said.
– Compiled by Dave Flessner who can be reached at [email protected] or 757-6340.