Bryan Jordan, president and chief executive officer of First Horizon, said in a statement that the increase in earnings “reflects the benefit of improving overall economic conditions and credit quality, our diversified business model and the ’emphasis on execution despite difficult conditions in the banking sector’.
“We remain focused on controlling what we can control, including spending and deposit pricing, and making investments that drive future growth.
“We are seeing increasing growth in the loan pipeline and we expect demand and economic growth to accelerate in the second half of the year as the economy continues to normalize,” Jordan said.
The bank continued to benefit – in a year-over-year comparison – from IberiaBank’s loan and commission income stream.
There was also income from the nine SunTrust Banks branches in the Triad and 30 in total that First Horizon acquired in July 2020. First Horizon paid $ 2.3 billion for the SunTrust portfolio in North Carolina, Georgia and in Virginia.
Loan income increased 62.9% year over year to $ 497 million.
First Horizon said it made $ 1.6 billion in new federal Paycheck Protection Plan loans in the second quarter, up from $ 1.3 billion in the first quarter.
Commission revenue jumped 38.3% to $ 285 million. By far the main source of commission income was fixed income securities at $ 102 million, followed by service charges and fees at $ 54 million and mortgage bank charges at $ 38 million.