After First Horizon reported an earnings miss, CEO Bryan Jordan mentioned the intense competition in the banking industry, particularly in money market and CD deposit rates. He noted that there were specials in the marketplace that led to a shift in their quarterly performance. This increase in competition also resulted in higher costs as First Horizon matched rates for customers, impacting the cost of deposits. Despite this, Jordan emphasized the company’s commitment to defending their customer base and focusing on long-term business strategies rather than short-term gains.
Headquartered in Memphis, Tennessee, First Horizon operates in 12 states, primarily in the southeast. Despite the challenges posed by the competitive market, Jordan expressed optimism about the future growth of the economy. However, he acknowledged that uncertainties such as the upcoming presidential election and the Federal Reserve’s decision on interest rates could make the remainder of the year a “dog fight.” Jordan highlighted the impact of these factors on regulation, taxation, and competition, emphasizing the need for clarity in these areas for the economy to accelerate and loan demand to increase.
Looking ahead, Jordan suggested that once these uncertainties are resolved, there could be momentum for economic growth in the coming years. He remained cautiously optimistic about the outlook for 2025 and beyond, while acknowledging the importance of external factors such as the election and Federal Reserve decisions in shaping the future landscape of the banking industry.
