December 7, 2022

The flow of Americans from the coasts to the southern states has been a boon for First Horizon Bank, CEO Bryan Jordan told CNBC on Monday.

“We are seeing an influx of people to the south. It has 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 Memphis, Tennessee-based regional bank with a presence in a dozen southern states. It had assets of $ 87.9 billion 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 offices, has seen a high number of moves in the past 15 months, he added.

“We think the attractive policies, specifically the right to work, taxation, etc., will be really, really positive for our footprint in 12 states,” said Jordan.

The company also has a presence in three of the six states that will gain political power given the population shifts over the past decade, as determined by the 2020 US census. These include North Carolina and Florida, states that will get an additional seat in Congress, and the state of Texas that will win two seats.

Six states in the Midwest and Northeast combined will lose seats, including New York and Michigan, while California will also lose one.

First Horizon reported second quarter results on Friday that were stronger than Wall Street estimates. The company had sales of $ 784 million, more than 53% more than last year and 70% more than in the second quarter of 2019.

First Horizon’s shares closed more than 3% at $ 15.01 on Monday. The stock has fallen 22% since early June.