Memphis, Tennessee, October 15 /PRNewswire/ — First Horizon Corporation (NYSE: FHN, “First Horizon”) today announced its third quarter 2026 financial results, reporting a net loss attributable to common shareholders of $940 million, or $0.20 per share. The company stated that these results reflect the impact of strategic initiatives aimed at further aligning its balance sheet with the company’s growth priorities.
This quarter, the company began evaluating the potential sale of approximately $4.5 billion in lower-yielding consumer mortgage loans and signed an agreement to sell these loans in early October. The company stated that this transaction will enhance profitability in the future and provide balance sheet flexibility to support future loan growth. The transaction is expected to close in early Q4.
Excluding special items, adjusted earnings per share for the third quarter of 2026 were $0.53, a decrease of $0.01 from the second quarter of 2026 and an increase of $0.02 from the third quarter of 2025. Reported results included special item impacts totaling $0.73 per share, or $347 million after tax, primarily related to reclassifying targeted mortgage loans as assets held for sale in connection with the proposed sale of the mortgage loan portfolio.
CEO Comment
Bryan Jordan, Chairman, President, and CEO of First Horizon Corporation, said: “This quarter’s performance reflects our disciplined approach and clear strategic priorities. Our average customer deposits increased by $1.3 billion this quarter, and we will continue to focus on growth while maintaining comprehensive customer relationships and allocating capital to areas that best drive long-term value creation. Looking ahead, we remain committed to executing our strategy to deliver sustainable growth and value for our customers, employees, and shareholders.”
Phone conference scheduling
Analysts, investors, and other interested parties may join the conference call by dialing the toll-free number 1-833-461-5787 (within the U.S.) starting at 8:15 a.m. Central Time on October 15, 2026, and entering access code 391 852 446. The conference call will begin at 8:30 a.m. Central Time.
Participants may also choose to listen to the live audio webcast at: https://ir.firsthorizon.com/events-and-presentations/default.aspx.
The live stream replay will be published on the company website on October 15 and archived for one year.
Forward-looking statements
This document and the accompanying full Q3 2026 earnings release contain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve FHN’s beliefs, plans, objectives, expectations, and estimates. Forward-looking statements are not statements of historical fact but rather relate to future operations, strategies, financial results, or other developments. These statements typically use words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “should,” “may,” “will,” “future,” or similar expressions that point to future events and trends.
Forward-looking statements are necessarily based on 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 may also change with respect to future business decisions and actions (including acquisitions and divestitures), potentially causing FHN’s actual future results and performance to differ materially from those envisioned or implied by the forward-looking statements or from historical performance. Although the list of uncertainties and contingencies is not guaranteed to be exhaustive, factors that could cause actual results to differ from forward-looking statements or historical performance include: the factors mentioned in this document; the factors described in Items 2.02 and 7.01 of FHN’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on the date of this release; the factors described in the introductory sections and Items 1, 1A, and 7 of FHN’s most recent Annual Report on Form 10-K; and the factors described in the introductory sections and Item 1A of Part II of the Quarterly Reports on Form 10-Q filed subsequent to that Annual Report. Any forward-looking statement made by FHN or on behalf of FHN is effective only as of the date it is made, and FHN undertakes no obligation to update or revise any forward-looking statements in this document or in any other statement, press release, report, or filing. Actual results may differ, expectations may change, and such differences may be material due to one or more of the above factors, as well as other factors listed in this document or in the aforementioned documents or not listed therein.
In this document and the corresponding full Q3 2026 earnings announcement, numbers may not add up exactly due to rounding; EPS refers to fully diluted earnings per share, and the capital adequacy ratio for the most recent quarter is an estimate.
Use of Non-GAAP Metrics and Non-GAAP Regulatory Metrics
Certain metrics included in this document and the corresponding full Q3 2026 earnings release are considered "non-GAAP" measures, meaning they do not conform to U.S. Generally Accepted Accounting Principles (GAAP) nor are they part of the statutory accounting practices currently applicable to FHN under U.S. banking regulations. Although other institutions may use different methodologies to calculate these metrics, FHN management believes these measures provide useful insight into the financial condition, capital position, and financial performance of FHN and its business segments. These non-GAAP metrics are reported to FHN management and the Board of Directors through various internal reports.
The non-GAAP metrics set forth in this document and the corresponding full Q3 2026 earnings release include: fully taxable equivalent measures, pre-provision net revenue (PPNR), return on average tangible common equity (ROTCE), ratio of tangible common equity (TCE) to tangible assets (TA), tangible book value (TBV) per share, and adjusted consolidated and segment results and various performance metrics and ratios, excluding special items.
The presentation of regulatory metrics, even though they are not GAAP, provides a meaningful basis for comparison with other financial institutions subject to the same regulations, as used by banking regulators when reviewing capital adequacy. Although these regulatory metrics are not GAAP terms, their presentation is not considered “non-GAAP” under U.S. financial reporting rules as long as it complies with regulatory standards. The regulatory metrics used in this financial supplement include: Common Equity Tier 1 (CET1), typically defined as common equity minus goodwill, other intangible assets, and certain other regulatory deductions; Tier 1 Capital, typically defined as the sum of core capital (including common equity and instruments that holders have no right to require redemption), adjusted for certain items under risk-based capital rules; and Risk-Weighted Assets, which represent the total on-balance-sheet and off-balance-sheet assets adjusted for credit and market risk, used to determine regulatory capital ratios.
For a reconciliation of non-GAAP to GAAP measures and the presentation of the most comparable GAAP items, see page 19 of FHN’s full Q3 2026 earnings release at https://ir.firsthorizon.com.
As of September 30, 2026, First Horizon Corp. (NYSE: FHN), with assets of $84.3 billion, is a leading regional financial services company dedicated to helping clients, communities, and employees reach their full potential through capital and advisory services. Headquartered in Memphis, Tennessee, its banking subsidiary, First Horizon Bank, operates in 12 states concentrated in the southern United States. The company and its subsidiaries offer commercial banking, private banking, consumer finance, small business banking, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services. First Horizon has been recognized by Fortune and Forbes as one of America’s Best Employers and among the Top 10 Most Reputable Banks in America. For more information, visit www.FirstHorizon.com.