First Horizon Corp (NYSE:FHN) stock rose 0.16% (As on January 19, 11:30:48 AM UTC-4, Source: Google Finance) after the company missed the earnings estimate for the fourth quarter of FY 22. The adjusted fourth-quarter net income was $293 million, up from $252 million in the third quarter. Further, amid global uncertainty and a challenging macroeconomic landscape, we delivered exceptional net interest income, net interest margin, strong loan growth, and successfully achieved our annualized net cost save target (related to the IBKC merger) of $200 million. For the full year of 2022, the company reported adjusted net income of $994 million, or $1.68 per share, down from $1.19 billion, or $2.07 per share, a year earlier. The full-year results also missed analysts expectations of $1.74 per share. Full year 2022 NIAC of $868 million, or earnings per share of $1.53, compares with $962 million, or earnings per share of $1.74, in 2021, largely reflecting the impact of provision expense. 2022 results included a net $82 million after-tax reduction, or $0.15, from notable items compared with $179 million, or $0.32 per share, in 2021. On an adjusted basis, full year 2022 NIAC of $950 million, or earnings per share of $1.68, compares with NIAC of $1.1 billion, or earnings per share $2.07 in 2021.

FHN in the fourth quarter of FY 22 has reported the adjusted earnings per share of 45 cents, missing the analysts’ estimates for the adjusted earnings per share of 57 cents. For the fourth quarter, First Horizon reported total revenue of $882 million, up $7 million from the third quarter, mostly on the strength of net interest income (NII). NII in the quarter totaled $709 million, up $47 million, or 7%, despite a $6 million reduction in net merger-related and PPP (Paycheck Protection Program) benefit. Core net income rose $53 million, primarily due to higher interest rates. Average loans were up $1.1 billion as an increase in commercial balances and residential real estate was partially offset by a $617 million decrease in loans to mortgage companies.

Meanwhile, First Horizon’s merger with IberiaBank Corp. closed in July 2020. TD Bank announced plans to acquire First Horizon for $13.4 billion in February of last year. First Horizon said Wednesday that TD Bank expects the deal to close in the first half of its 2023 fiscal year, subject to regulatory approval.