First Horizon Swings to $94M Loss on $4.5B Mortgage Sale, Adjusted EPS $0.53
FHN is trading near its 52-week low of $19.8 (14% above the low) on elevated volume (2.2× avg).
Summary
First Horizon reported a Q3 2026 net loss of $94 million, or $(0.20) per share, driven by $347 million after-tax in notable items ($0.73 per share) tied to reclassifying targeted mortgage loans as held for sale. Adjusted EPS came in at $0.53, down a penny from Q2 but up two cents year-over-year. The company agreed in early October to sell roughly $4.5 billion of lower-yielding consumer mortgages, a deal expected to settle early in Q4 and management says will be accretive to earnings going forward while freeing balance sheet capacity for loan growth. Average client deposit balances rose $1.3 billion in the quarter. The headline loss is an accounting-driven event, not a credit or capital problem, but the size of the mortgage sale and the timing of the settlement are the real items to track. The earnings call is at 8:30 a.m. CT today.
At the time of this announcement, FHN was trading at $22.60 on NYSE in the Finance sector, with a market capitalization of approximately $10.7B. The 52-week trading range was $19.80 to $26.56. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: PR Newswire.