The merger of Memphis-based First Horizon National Corp. with Louisiana-based Iberiabank will continue as planned despite the damage the coronavirus pandemic has caused to the economy, First Horizon CEO Bryan Jordan said in a quarterly earnings call Tuesday morning.
While the merger is still expected to close by the end of the second quarter, the previously announced acquisition of 30 SunTrust Bank branch offices is postponed until the early part of quarter three.
"The postponement will alleviate customer disruption in this uncertain time and allow us to comply with social distancing guidelines," Jordan said. "We believe both of these transactions will enhance our long-term value." First Horizon National Corp. chair and CEO Bryan Jordan, April 2020
Later in the call, Jordan went on to say that the bank is in strong position to manage potential losses that could come with a slow economic recovery and growth in the aftermath of the coronavirus pandemic.
"While these are clearly unusual times, I believe we are well prepared to deal with the fallout of COVID-19," Jordan said. "We have a strong capital liquidity base, we've maintained consistently strong underwriting standards and have built a diversified portfolio that is focused on profitability and our loan loss allowance is strong.
"We have good expense controls in place, and very importantly, we have solid underlying earnings power."