First Horizon Q3 2026: adjusted EPS $0.53 as GAAP shows $(0.20) loss on ~$4.5 billion mortgage sale plan

First Horizon posted a third-quarter net loss available to common shareholders of $94 million, or $0.20 a share, after charges tied to a planned sale of about $4.5 billion of lower-yielding consumer mortgages, the Memphis bank said Thursday.

Excluding notable items totaling about $347 million after tax, or $0.73 a share, adjusted earnings per share were $0.53 — down $0.01 from the second quarter and up $0.02 from a year earlier. The company said it entered an agreement in early October to sell the mortgages and expects settlement early in the fourth quarter.

Shares were down about 1.4% near $22.67 in Thursday morning trading.

CEO Bryan Jordan said average client deposit balances increased $1.3 billion in the quarter as the bank focuses on full client relationships. The CET1 ratio was 10.3%, down from the second quarter, reflecting the notable items and the mortgage held-for-sale reclassification, according to the release.

Management framed the sale as accretive to future earnings and as balance-sheet flexibility for loan growth. Reported total revenue on an FTE basis was $410 million versus adjusted revenue of $883 million after notable-item bridging shown in the release.

By the numbers

• GAAP net loss to common: $94 million; EPS: $(0.20)
• Adjusted EPS: $0.53
• Notable items: about $347 million after tax ($0.73 per share)
• Mortgage portfolio marked for sale: about $4.5 billion
• Average client deposit increase: $1.3 billion in the quarter
• CET1 ratio: 10.3%

Sources

1. First Horizon Corporation, Form 8-K (Items 2.02, 7.01, 9.01), Exhibit 99.1 earnings release, filed Oct. 15, 2026, accession 0000036966-26-000178

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