First Horizon CEO sees credit losses in ‘$100M area’ for quarter

D. Bryan Jordan, First Horizon’s Chairman, President and CEO, said while presenting at the Barclays Global Financial Services Conference, according to a transcript of the event: “I would say in terms of broad stress in our credit portfolio is, we’re not seeing any signs of broad stress, and that’s across asset categories, collateral types or geographic. So broadly, we’re not seeing much. I do believe, as we sit here today, we’re going to see a significant increase in our charge-offs this quarter. We have one idiosyncratic loss. It’s probably going to push our credit losses into the $100M area for the quarter. This is a $70M individual credit that filed Chapter 7 in mid-August. And absent that, our credit charge-offs are going to be sort of in line with where they’ve been for the next several — last several quarters in that $25M to $30M range. So — and there are not any broad signs, but we’ve seen couple of idiosyncratic things like this that have driven some losses, and that’s sort of our expectation for the next several quarters that there’s going to be one or two off situations, but nothing systemic or broad-based.”