First Horizon reports Q3 loss on mortgage sale impact
FHN•First Horizon reported a third-quarter net loss of $94 million, or $0.20 per share, tied to items related to the reclassification and pending sale of about $4.5 billion in lower-yielding consumer mortgages. Adjusted EPS was $0.53, matching analyst expectations.
1. Quarterly results
First Horizon reported a third-quarter net loss of $94 million, or $0.20 per share. Adjusted EPS was $0.53, in line with the $0.53 analyst consensus.
2. Mortgage portfolio sale
The loss reflected notable items tied to reclassifying and pending sale of about $4.5 billion in lower-yielding consumer mortgages. The company expects the sale to be accretive to earnings going forward and says balance sheet changes will support future loan growth.
3. Deposits and analyst views
Average client deposit balances increased $1.3 billion in the quarter, CEO Bryan Jordan said. The average analyst rating was buy, with eight strong buy or buy recommendations, 13 holds and no sell or strong sell recommendations.
