The bank's common equity tier 1 ratio was 11.3% last quarter, above its peers' median ratios of 9.9%. "We're not competing in a normalized deposit market right now," Dmuchowski said.įor First Horizon, one selling point in the wake of the recent bank failures is its strong capital position. Some clients are telling First Horizon that other banks are offering to pay above the federal funds rate - a sign of how competitive the deposit market has gotten in the wake of a few high-profile bank failures. Though First Horizon is focused on deposit growth, some competitors are beating it with unusually aggressive interest rates, she said. The rates that First Horizon is paying to its depositors continue to rise given the "extremely competitive market," Dmuchowski said. One large nonprofit that the bank has spent years courting became a customer and moved over $50 million, Dmuchowski said. The company's stock price climbed 5.63% on Tuesday to $11.44 per share.įirst Horizon recorded its best month for deposits in May, Chief Financial Officer Hope Dmuchowski said, noting that her inbox was "flooded with emails" from clients who decided to move more money to the bank after the TD deal was called off on May 4.ĭeposits rose last month by roughly $1.5 billion to $61.8 billion, reversing a decline in April. … Our people are super pumped to be out and deliver for their clients and be active, playing offense again when we haven't been doing that for the last couple of years." "We've got a tremendous amount of new account originations. "Our people are energized," Restel said Tuesday. and, most recently, more than a year of waiting for a merger approval that never came.
The last few years included a global pandemic, a merger with Iberiabank Corp. The deal's failure has given First Horizon's bankers a chance to finally "run our own playbook" after years of being constrained, Restel said. A few of them are happy to stick with First Horizon since they didn't want to bank with a Canadian-owned bank, according to Anthony Restel, the company's president of regional banking. Deposits have grown, employees are reengaged, and clients are breathing a sigh of relief as they've learned they won't be switched away from First Horizon's systems.
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