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First Horizon's Q3 net interest margin expands on higher loan balances, rates

Memphis, Tenn.-based First Horizon National Corp. on Oct. 16 posted third-quarter net income available to common shareholders of $270.3 million, or 83 cents per share, compared to net income of $67.3 million, or 28 cents per share, a year earlier.

The company's adjusted EPS for the third quarter was 36 cents. The S&P Capital IQ consensus estimate for normalized EPS for the third quarter was 36 cents.

The company's net interest income for the third quarter was $305.7 million, up 46% from the year-ago period's $209.8 million.

The company's efficiency ratio was 66.55% this quarter, compared to 75.90% in the previous quarter and 73.51% a year ago.

Net interest margin expanded to 3.44% in the third quarter from 3.19% in the year-ago period, driven by higher loan balances and increased interest rates.

Revenue totaled $654.7 million in the third quarter, up from $322.2 million a year ago. Total loans, net of unearned income, grew to $27.35 billion, up from the year-ago period's $20.17 billion. Total deposits grew to $31.01 billion, up from the year-ago period's $22.10 billion.