First Horizon ( NYSE: FHN ) posted Q4 earnings Wednesday that topped the average Wall Street estimate as the regional lender's net interest income continued to benefit from higher interest rates and increased loan balances.
During the quarter, the company achieved its $200M of targeted annualized net cost saves in connection with its merger with IberiaBank ( IBKC ).
Q4 adjusted EPS (excluding notable items of -$0.06) of $0.51, exceeding the $0.48 consensus estimate, rose from $0.44 in Q3 and from $0.48 in the year-ago quarter.
Revenue of $882M, falling short of the $883.2M consensus, advanced from $875M in the prior quarter and from $745M in Q4 2021.
Net interest income was $709M compared with $662M in Q3 and $502M a year before. Net interest margin of 3.89% vs. 3.49% in Q3 and 2.42% in Q4 2021.
Noninterest income of $174M, though, fell from $213M in Q3 and from $247M in Q4 2021. On top of that, noninterest expense of $503M rose from $468M in Q3 but dipped from $528M a year ago.
Provision for credit losses came in at $45M vs. $60M in Q3 and a gain of $65M in Q4 2021.
Average loans were $57.6B compared with $56.5B in Q3 and $54.7B in Q4 2021, while average deposits of $64.9B drifted down from $68.1B in Q3 and from $74.6B in Q4 2021.
Earlier, First Horizon Non-GAAP EPS of $0.51 beats by $0.03, revenue of $882M misses by $1.23M .
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First Horizon Q4 earnings beat as higher rates, loan balances benefit NII