First Horizon National Corp. on Friday, July 16, reported second-quarter earnings of $0.58, beating Wall Street estimates of $0.43 per share.

The Memphis-based company has surpassed consensus estimates for four consecutive quarters.

“I feel very good about the momentum I see in the company,” said Bryan Jordan, FHN president and CEO. “The economy is strengthening quarter by quarter, and we’re encouraged by the trends we see there.”

The bank posted revenues of $782 million for the quarter ended June 2021, up from year-ago revenues of $511.61 million.

Quarterly results were reduced by a net $26 million after-tax, or $0.05 per share, of notable items largely related to the IberiaBank merger, compared with a net $60 million after-tax reduction, or $0.11 per share, in first quarter 2021.

“In the midst of integrating our merger of equals, there are cost synergies, and as credit improves, we’re optimistic about how we look at the back half of this year and into 2022,” Jordan said.

Jordan said the all-stock merger, announced in late 2019, with IberiaBank is nearly complete. 

“The merger is going to be positive across all of our markets, and positive here in Memphis as well,” he said. “We feel good about the benefits to the community in Memphis.”

As of 2020, the combined company had $79 billion in assets, $60 billion in deposits and $58 billion in loans. There are 8,400 employees and 460 branches across 11 states throughout the Southeast.

The merger resulted in the closing of 50 branches across the banks’ combined footprint, with three of those in the Memphis market.

“If you look at the IberiaBank locations, it makes sense that there’s a need to consolidate some of those,” Jordan said.

Some of the banks’ systems have been integrated, and the major systems, including the deposit systems, should be completely integrated within 90 days.

The rebranding of more than 100 branches will take place beginning Oct. 8.

Jordan said the integration process has gone smoothly, and the only hiccup has been the unforeseen COVID-19 pandemic.

“From my perspective, the surprises have been positive, and it’s the way people have reacted to the need of the PPP (Paycheck Protection Program) program, the merger integration and the ability to service our clients,” Jordan said. “We’re very encouraged, and there have been no negatives other than we didn’t except a pandemic in the middle of all of it (the merger).”

The merger has created revenue streams across specialty lines of business including asset-based lending, private client and wealth management and mortgage origination.

Jordan is “optimistic on the revenue-synergy side,” and thinks the bank’s modest goal will lead to significant revenue growth down the road.

Meanwhile, chief financial officer William “BJ” Losch, who has been with the organization since 2009, attended his final earnings call.

“BJ has been key to our repositioning the business through the financial crisis when he joined, taking our cost structure and right-sizing it,” Jordan said. “He helped position us to be a strong, regional player here in the South. I’m disappointed to see him leave the organization, but I’m supportive of BJ, and I will miss him.”

Chief operating officer Anthony Restel will serve as interim CFO following Losch’s departure until a permanent successor is named.