First Horizon reports Q3 loss and announces $4.5 billion mortgage portfolio sale
First Horizon Corporation posted a Q3 2026 net loss of $94 million, or $0.20 per share, after a $0.73‑per‑share charge for reclassifying mortgages. Adjusted earnings were $0.53 per share. The bank entered an agreement to sell approximately $4.5 billion of low‑yielding consumer mortgages, with settlement expected early in the fourth quarter. Management said the transaction will improve the loan‑to‑deposit ratio, provide balance‑sheet flexibility and generate about a 4% EPS accretion in 2027.
Why it matters
The company expects the mortgage sale to be accretive to earnings on a go‑forward basis and to boost 2027 EPS by roughly 4% (the company says). The sale also reduces the loan‑to‑deposit ratio to about 88% and supports the planned resumption of share repurchases in Q4.
Key facts
- 1Q3 2026 net loss was $94 million, or $(0.20) per share. prnewswire.com
- 2Adjusted EPS for Q3 2026 was $0.53. prnewswire.com
- 3The bank agreed to sell approximately $4.5 billion of consumer mortgages. prnewswire.com
- 4The mortgage transaction is expected to settle early in the fourth quarter. sec.gov
- 5Average client deposit balances increased by $1.3 billion in the quarter. sec.gov
- 6Management projects about a 4% EPS accretion in 2027 from the sale. finance.yahoo.com
Summary written by AlphAI AI Desk from 20 of 20 sources. Not investment advice. Figures are as stated by the linked sources.