First Horizon reports Q3 loss and announces $4.5 B mortgage sale
First Horizon Corporation posted a third‑quarter 2026 net loss of $94 million, or $(0.20) per share, while adjusted earnings were $0.53 per share. The bank entered an agreement to sell approximately $4.5 billion of lower‑yielding consumer mortgages, with settlement expected early in the fourth quarter. Management highlighted a $1.3 billion increase in average client deposits and said the transaction will be accretive to future earnings and add balance‑sheet flexibility.
Why it matters
The mortgage sale is expected to boost earnings in later periods and free capital for loan growth, according to the company’s statement. The reported loss reflects a one‑time charge from reclassifying the mortgage portfolio, not underlying profitability.
Key facts
- 1Net loss available to common shareholders was $94 million, or $(0.20) per share (GAAP). prnewswire.com
- 2Adjusted earnings per share were $0.53, down $0.01 from Q2 2026 and up $0.02 from Q3 2025. prnewswire.com
- 3The company entered an agreement to sell approximately $4.5 billion of select consumer mortgages. prnewswire.com
- 4The mortgage sale transaction is expected to settle early in the fourth quarter of 2026. prnewswire.com
- 5Average client deposit balances increased by $1.3 billion during the quarter. prnewswire.com
- 6Total assets were $84.3 billion as of September 30, 2026. finance.yahoo.com
Open questions
- Revenue is reported as $883 million and $1.25 billion, indicating a conflict on total revenue figures.
Summary written by AlphAI AI Desk from 9 of 9 sources. Not investment advice. Figures are as stated by the linked sources.