First Horizon Corporation Reports Third Quarter 2026 Results and Announces Strategic Balance Sheet Changes to Support Earnings and Growth

The pending mortgage sale is expected to support future earnings and loan growth despite the current quarter's accounting impact.

Rhea-AI Summary

First Horizon Corporation (FHN) reported a third-quarter 2026 net loss available to common shareholders of $94 million alongside balance-sheet changes.

The diluted loss was $0.20 per share. Results included $347 million after tax, or $0.73 per share, in notable items, primarily from reclassifying targeted mortgage loans as held for sale. In early October, the company agreed to sell approximately $4.5 billion of select lower-yielding consumer mortgages, with settlement expected early in the fourth quarter. First Horizon expects the sale to increase future earnings and provide flexibility for loan growth.

Excluding notable items, adjusted diluted earnings were $0.53 per share, down $0.01 from second-quarter 2026 and up $0.02 from third-quarter 2025. Average client deposit balances increased $1.3 billion during the quarter.

3 points · 1 major

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 3 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Mortgage sale agreement covers approximately $4.5 billion; First Horizon expects higher future earnings and flexibility for loan growth. 42% of market cap
• Moderate pointAverage client deposit balances increased $1.3 billion during the quarter.
• Minor pointAdjusted diluted EPS of $0.53 fell $0.01 versus second-quarter 2026 but rose $0.02 versus third-quarter 2025.

Negative

• Moderate pointNotable items totaled $347 million after tax, or $0.73 per share, primarily from mortgage held-for-sale reclassification. 3.2% of market cap
• Moderate pointMortgage sale remains pending, with settlement expected early in the fourth quarter.
• Minor pointThird-quarter 2026 net loss available to common shareholders totaled $94 million, or $0.20 per diluted share.

Key Figures

Net loss available to common shareholders: $94 million Loss per share: $0.20 Mortgage portfolio sale: ~$4.5 billion +5 more

Net loss available to common shareholders

$94 million

Third quarter 2026

Loss per share

$0.20

Third quarter 2026

Mortgage portfolio sale

~$4.5 billion

Select lower-yielding consumer mortgages; agreement entered in early October

Adjusted earnings per share

$0.53

Third quarter 2026; down $0.01 from Q2 2026 and up $0.02 from Q3 2025

Notable items

$0.73 per share

Impact included in reported results

Notable items after tax

$347 million

Primarily related to reclassifying targeted mortgage loans as held for sale

Average client deposit balance increase

$1.3 billion

During the quarter

Expected transaction settlement

Early in the fourth quarter

Mortgage portfolio sale

Previous Earnings Reports

1 past event · Latest: Oct 15

Same Type 1 event

1. Oct 15

   3Q25 earnings

   24h Move

   -9.4%

   Reported adjusted EPS of $0.51, providing a same-quarter comparison for current adjusted EPS.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap financial measures, held for sale, fully taxable equivalent, diluted shares

4 terms

non-gaap financial measures financial

""Adjusted" results, along with return on tangible common equity, tangible book value per share, PPNR, ACL to loans ratio and certain other financial measures, are non-GAAP financial measures."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

held for sale financial

"primarily related to the reclassification of targeted mortgage loans to held for sale"

An asset or a group of assets classified as 'held for sale' is one the company intends to sell rather than keep using, and management has committed to that plan with an active effort to find a buyer. Investors care because these items are removed from ongoing operating results and valued differently, offering a clearer view of the business’s continuing performance—think of it like marking a piece of furniture for the garage sale rather than counting it as part of your regular household setup.

fully taxable equivalent financial

"NII, total revenue, NIM, and PPNR are presented on a fully taxable equivalent ("FTE") basis."

A fully taxable equivalent converts a tax-free yield into the pretax yield you would need from a taxable investment to get the same after-tax return, using an investor’s marginal tax rate. Think of it like inflating a discounted price to the full sticker price so you can compare items side‑by‑side; investors use it to fairly compare tax-exempt securities with taxable alternatives and choose the better after-tax income.

diluted shares financial

"All references to earnings per share are based on diluted shares."

Diluted shares are the total number of company shares that would exist if all potential shares — such as employee stock options, warrants, and convertible bonds or preferred stock — were turned into common stock. Investors care because using this larger share count gives a more realistic picture of per-share value and ownership: it’s like dividing the same pie among more people, which lowers earnings per share and reduces each owner’s slice.

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MEMPHIS, Tenn., Oct. 15, 2026 /PRNewswire/ -- First Horizon Corporation (NYSE: FHN) (or "First Horizon") today reported financial results for the third quarter of a net loss available to common shareholders of $(94) million or loss per share of $(0.20). These results reflect the impact of strategic actions to further align the balance sheet with the Company's growth priorities. During the quarter, the Company began evaluating the possibility of selling ~$4.5 billion of select lower yielding consumer mortgages and, in early October, entered into an agreement to sell these mortgages. This transaction will be accretive to earnings on a go forward basis and will provide balance sheet flexibility to support future loan growth. The transaction is expected to settle early in the fourth quarter.

Excluding notable items, adjusted earnings per share for third quarter 2026 was $0.53, down $0.01 from second quarter 2026 and up $0.02 from third quarter 2025. Reported results include the impacts of notable items totaling $0.73 per share, or $347 million after tax, primarily related to the reclassification of targeted mortgage loans to held for sale in relation to the pending mortgage portfolio sale.

CEO Commentary

"This quarter's results are a testament to our disciplined approach and clear strategic priorities," said Bryan Jordan, Chairman, President and CEO of First Horizon Corporation. "Average client deposit balances increased $1.3 billion in the quarter, and we continue to focus on growing and maintaining full client relationships and deploying capital where it best serves long-term value creation. Looking ahead, we remain committed to executing our strategy and delivering sustainable growth and value for our clients, associates, and shareholders."

Conference Call Information

Analysts, investors and interested parties may call toll-free starting at 8:15 a.m. CT on October 15, 2026, by dialing 1-833-461-5787 (if calling from the U.S.) and entering access code 391 852 446. The conference call will begin at 8:30 a.m. CT.

Participants can also opt to listen to the live audio webcast at https://ir.firsthorizon.com/events-and-presentations/default.aspx.

A replay of the webcast will  be available on our website on October 15 and will be archived on the site for one year.

Forward-Looking Statements

This document and the complete 3Q2026 earnings release to which it relates contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to FHN's beliefs, plans, goals, expectations, and estimates. Forward-looking statements are not a representation of historical information, but instead pertain to future operations, strategies, financial results, or other developments. Forward-looking statements often use words such as "believe," "expect," "anticipate," "intend," "estimate," "should," "is likely," "will," "going forward," and other similar expressions that indicate future events and trends. Forward-looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, operational, economic, and competitive uncertainties and contingencies, many of which are beyond FHN's control, and many of which, with respect to future business decisions and actions (including acquisitions and divestitures), are subject to change and could cause FHN's actual future results and outcomes to differ materially from those contemplated or implied by forward-looking statements or historical performance. While there is no assurance that any list of uncertainties and contingencies is complete, examples of factors which could cause actual results to differ from those contemplated by forward-looking statements or historical performance include those mentioned: in this document; in Items 2.02 and 7.01 of FHN's Current Report on Form 8-K filed with the Securities and Exchange Commission on the date of this release; in the forepart, and in Items 1, 1A, and 7, of FHN's most recent Annual Report on Form 10-K; and in the forepart, and in Item 1A of Part II, of FHN's Quarterly Report(s) on Form 10-Q filed after that Annual Report. Any forward-looking statements made by or on behalf of FHN speak only as of the date they are made, and FHN assumes no obligation to update or revise any forward-looking statements that are made in this document or in any other statement, release, report, or filing from time to time. Actual results could differ and expectations could change, possibly materially, because of one or more factors, including those factors listed in this document or the documents mentioned above, and other factors not listed.

Throughout this document and the complete 3Q2026 earnings release to which it relates, numbers may not total due to rounding, references to EPS are fully diluted, and capital ratios for the most recent quarter are estimates.

Use of non-GAAP Measures and Regulatory Measures that are not GAAP

Certain measures included in this document and the complete 3Q2026 earnings release to which it relates are "non-GAAP," meaning they are not presented in accordance with generally accepted accounting principles in the U.S. and also are not codified in U.S. banking regulations currently applicable to FHN. Although other entities may use calculation methods that differ from those used by FHN for non-GAAP measures, FHN's management believes such measures are relevant to understanding the financial condition, capital position, and financial results of FHN and its business segments. Non-GAAP measures are reported to FHN's management and Board of Directors through various internal reports.

The non-GAAP measures presented in this document and the complete 3Q2026 earnings release to which it relates are fully taxable equivalent measures, pre-provision net revenue ("PPNR"), return on average tangible common equity ("ROTCE"), tangible common equity ("TCE") to tangible assets ("TA"), tangible book value ("TBV") per common share, and various consolidated and segment results and performance measures and ratios adjusted for notable items.

Presentation of regulatory measures, even those which are not GAAP, provide a meaningful base for comparability to other financial institutions subject to the same regulations as FHN, as demonstrated by their use by banking regulators in reviewing capital adequacy of financial institutions. Although not GAAP terms, these regulatory measures are not considered "non-GAAP" under U.S. financial reporting rules as long as their presentation conforms to regulatory standards. Regulatory measures used in this financial supplement include: common equity tier 1 capital ("CET1"), generally defined as common equity less goodwill, other intangibles, and certain other required regulatory deductions; tier 1 capital, generally defined as the sum of core capital (including common equity and instruments that cannot be redeemed at the option of the holder) adjusted for certain items under risk based capital regulations; and risk-weighted assets, which is a measure of total on- and off-balance sheet assets adjusted for credit and market risk, used to determine regulatory capital ratios.

Refer to the tabular reconciliation of non-GAAP to GAAP measures and presentation of the most comparable GAAP items,  beginning on page 19 of FHN's complete 3Q26 earnings release available at https://ir.firsthorizon.com.

First Horizon Corp. (NYSE: FHN), with $84.3 billion in assets as of September 30, 2026, is a leading regional financial services company, dedicated to helping our clients, communities and associates unlock their full potential with capital and counsel. Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates in 12 states concentrated in the southern U.S. The Company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services. First Horizon has been recognized as one of the nation's best employers by Fortune and Forbes magazines and a Top 10 Most Reputable U.S. Bank. More information is available at www.FirstHorizon.com.

Contact:	Investor Relations - Tyler.Craft@firsthorizon.com
	Media Relations - Beth.Ardoin@firsthorizon.com

* "Adjusted" results, along with return on tangible common equity, tangible book value per share, PPNR, ACL to loans ratio and certain other financial measures, are non-GAAP financial measures. All references to loans include leases. All references to earnings per share are based on diluted shares. NII, total revenue, NIM, and PPNR are presented on a fully taxable equivalent ("FTE") basis. Capital ratios are preliminary. Please see page 3 of our complete 3Q2026 earnings release for information on our use of non-GAAP measures and a reconciliation of these measures to GAAP beginning on page 19 of that release.

 

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SOURCE First Horizon Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were First Horizon's third-quarter 2026 earnings?

First Horizon reported a $94 million net loss available to common shareholders, or $0.20 per diluted share. Excluding notable items, adjusted diluted earnings were $0.53 per share. Adjusted results are non-GAAP financial measures.

How much is First Horizon selling in mortgages, and when is settlement expected?

First Horizon agreed in early October to sell approximately $4.5 billion of select lower-yielding consumer mortgages, with settlement expected early in the fourth quarter. The company expects the transaction to increase future earnings and provide balance-sheet flexibility to support loan growth.