Strong revenue growth powered First Horizon in Memphis to a 7% increase in third-quarter earnings.
The $28.4 billion-asset company said Friday that it earned $63 million in the quarter that ended Sept. 30, after posting double-digit gains in both interest and noninterest income. Earnings per share increased 8% from the same period last year, to 27 cents, beating estimates of Wall Street analysts by two cents.
The parent of First Tennessee bank said that net interest income climbed 16% year over year, to $333.7 million, thanks largely to an 18% increase in average loans. The net interest margin climbed 11 basis points, to 2.96%.
Noninterest income increased 19%, to $148.7 million, driven largely by revenue growth in its fixed-income business. Overall, First Horizons' revenues climbed 16% from the same period last year, to $333.7 million.