First Horizon Corporation

Good day and welcome to the First Horizon National Corps Third Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. If you would like to withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Ellen Taylor, Head of Investor Relations. Please go ahead.

Thanks, Sarah, and good morning, everyone. Thanks so much for joining us today. To kick things off, our CEO, Brian Jordan, and CFO, BJ Loesch, will provide an overview of our results, and then we're going to open things up for questions. We're really pleased to have Susan Springfield, our Chief Credit Officer, with us to help with that effort. So our remarks today will reference the earnings presentation, which is available at ir.fhnc.com. And I should note that we will make forward-looking statements that are subject to risks and uncertainties, and you should review the factors in our SEC filings that may cause our results to differ from our expectations. Our statements reflect our views today, and we aren't obligated to update them. We will also address our adjusted results and our remarks, which are non-GAAP measures. And you absolutely should review the GAAP information in our supplement and on page two of our presentation. And with that, I'm going to hand it over to Brian.

Thank you, Ellen. Good morning, everybody. Thank you for joining us this morning. This has been a very significant quarter for us. We closed our merger of equals with Iberia Bank. We acquired the 30 branches from SunTrust, Truist, Really excited about that. That integration was done in mid-July. We've made significant progress during the quarter. We are very pleased with the performance of the organization, the great work that our associates did to serve their customers and their communities in what has been a challenging and trying time. We see good momentum in our business. We proved out, again, the counter-cyclical benefit of our business's mortgage benefits mortgage warehouse lending, and our fixed income business. Our balance sheet continues to perform well. As we've talked about over the last 10 or 12 years, we have really significantly restructured the balance sheet and to focus it more on C&I. We had net charge-offs of 44 basis points during the quarter, and we saw a slight tick-up in non-performing assets, but we ended the period with about $1.3 billion of capacity for loss-taking. very strong balance sheet. We had a good quarter in terms of deposit activity. We had good customer inflows, and the balance sheet feels good, and we saw some progress made in adjusting our pricing to compensate for the lower interest rate environment. Also during the quarter, we made good progress on our expenses. We captured another $8 million of run rate in our for 170 million plus in expense savings. We feel very good about our progress in controlling costs and our planning for the integration. There's a couple good slides in the investor deck which you can reference that lay out the expectations around expense efficiencies over the next couple of quarters and year. Our capital base continues to be strong. It's very, very pleased with the positioning. We came in with a CET1 ratio of 9.15%. Our tangible book value dilution was very slight from the acquisition of the branches and the completion of the merger, largely offset by earnings during the quarter. Our planning around the integration continues to go well. We expect that the significant integration work will be completed By the fall, early fall of 2021, we are on target and on track for completing that integration. We have a lot of work to do between now and then, and we have associates all over the organization who are working to make sure that we do it in a seamless fashion and minimize, absolutely minimize adverse impact on our customers and our communities. Finally, before I turn it over to BJ, I feel very strongly that we're well positioned for this somewhat uncertain environment. Clearly, the progress of the PPP programs, the fiscal stimulus has been positive to date on the economy, but there's still uncertainty. I feel like we're well positioned in terms of a strong balance sheet, strong loss-taking capacity, strong capital. and also positioned with a tailwind in the sense that we have our countercyclical businesses, and we also have the ability to realize a significant amount of cost savings over the next 18 to 24 months. So with that, I will stop. I'll turn it over to BJ, and then we'll be happy to take questions later. BJ?