The flow of Americans from the coasts to southern states has been a boon for First Horizon Bank, CEO Bryan Jordan told CNBC Monday.
“We’re seeing an influx of people into the South. It’s been very, very positive, and we will continue to see that,” he said in a “Mad Money” interview with Jim Cramer.
First Horizon is a regional bank based in Memphis, Tennessee with a footprint in a dozen southern states. It had $87.9 billion in assets as of June 30.
Jordan said he is seeing significant population changes in states like Florida, Georgia and Tennessee.
Middle Tennessee, where First Horizon has a concentration of branches, has seen a high number of relocations there within the past 15 months, he added.
“We think that the attractive policies, particularly around right to work, taxation, etcetera, are going to be really, really positive for our 12-state footprint,” Jordan said.
The company also has a presence in three of the six states set to gain political power, given population shifts over the past decade as recorded in the 2020 U.S. Census. Those include North Carolina and Florida, states set to pick up an extra House seat in Congress, and the state of Texas, which will gain two seats.
Six states combined in the Midwest and Northeast will lose seats, including New York and Michigan, while California also drops one.
First Horizon on Friday reported results from the second quarter that were stronger than Wall Street’s estimates. The company posted $784 million on the revenue line, up more than 53% from a year ago and 70% higher from the second quarter in 2019.
Shares of First Horizon closed down more than 3% Monday at $15.01. The stock is down 22% from early June.