First Horizon National Corp. Chairman and CEO D. Bryan Jordan said the company raised its cost saves projection from its recent merger and discovered new incremental revenue opportunities.
At the 2017 Goldman Sachs U.S. Financial Services Conference, Jordan said the Memphis, Tenn.-based company's acquisition of Charlotte, N.C.-based Capital Bank Financial Corp. could now produce $85 million in cost savings, up from $65 million.
The $2.2 billion cash-and-stock deal was completed Nov. 30. Jordan added that First Horizon also sees $25 million to $30 million in new incremental revenue opportunities from the acquisition. He said these would mostly be realized from better balance sheet usage and better funding costs through an expanded deposit market.
Jordan also said the company believes it will hit its 15% return on tangible common equity target by 2019, part of its "Bonefish" business strategy.
When asked about tax reform, as the odds look increasingly likely after the Dec. 2 Senate vote, the CEO said First Horizon will likely use any tax breaks to invest in talent, especially in the Carolinas and South Florida markets. Jordan said he expects shareholders to benefit as well.
First Horizon stock was trading 1.13% lower to $20.05 as of 2:26 p.m. ET.
