First Horizon records $94 million net loss

• First Horizon Corporation (NYSE:FHN) reported a third-quarter 2026 net loss of $94 million due to mortgage reclassifications.
• The bank agreed to sell $4.5 billion in lower-yielding consumer mortgages to boost future earnings and capital flexibility.
• Adjusted diluted earnings per share reached $0.53, while average client deposits grew by $1.3 billion during the quarter.

First Horizon Corporation (NYSE:FHN) reported a third-quarter 2026 net loss available to common shareholders of $94 million, or $0.20 per diluted share.

Excluding notable items, adjusted diluted earnings per share reached $0.53, falling $0.01 sequentially from second-quarter 2026 but rising $0.02 from third-quarter 2025.

In early October, the bank agreed to sell approximately $4.5 billion of select lower-yielding consumer mortgages, with transaction settlement expected early in the fourth quarter.

Results included $347 million after tax, or $0.73 per share, in notable items primarily associated with reclassifying targeted mortgage loans as held for sale.

First Horizon expects the strategic mortgage sale to boost future earnings and create capital flexibility to support core loan growth.

Average client deposit balances increased by $1.3 billion during the third quarter, bolstering overall liquidity and funding capacity.