First Horizon ( NYSE: FHN ) Q3 earnings on Tuesday came in better than expected as the regional bank saw strong growth in loans and net interest income during the quarter.
Its merger with IberiaBank ( IBKC ) remains on track to deliver ~$200M of targeted annualized net cost saves by Q4, with $184M already achieved.
Q3 adjusted EPS (excluding ( TD )-related transaction costs and IBKC merger-related costs of $0.01) of $0.44 topped the average analyst estimate of $0.43, and rose from $0.34 in Q2, but fell from $0.50 a year ago.
Revenue of $875M, exceeding the Wall Street consensus of $819.83M, and increasing from $743M in Q2 and $738M in Q3 2021.
Net interest income came in at $662M compared with $542M in Q2 and $492M in the year-ago period thanks to a rising interest rate environment. Net interest margin, in turn, climbed to 3.49% from 2.74% in Q2 and 2.41% in Q3 2021.
Noninterest income of $213M vs. $201M in the prior quarter and $247M a year earlier.
Provision for credit losses of $60M vs. $30M in Q2 and a benefit of $85M in Q3 of last year.
Return on average common equity was 13.9%, up from 9.1% in Q2 and 11.4% in Q3 a year before.
Average loans of $56.5B gained 2% from the prior quarter, while average deposits of $68.1B slid 5%.
Earlier, First Horizon Non-GAAP EPS of $0.44 beats by $0.01, revenue of $875M beats by $55.17M .
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First Horizon Q3 earnings benefit from growth in loans, NII