US regional lender First Horizon to offload $4.5 billion of consumer mortgages
FHN•First Horizon agreed to sell about $4.5 billion of select lower-yielding consumer mortgages, a deal expected to close in the fourth quarter. The sale is anticipated to boost 2027 profit by 4% after tax.
1. Mortgage portfolio sale
First Horizon said it struck a deal to sell about $4.5 billion of select lower-yielding consumer mortgages as it looks to boost earnings. The sale is expected to close in the fourth quarter and is anticipated to boost 2027 profit by 4% after tax.
2. Balance sheet changes
The bank said the realignment is part of a broader effort to overhaul its balance sheet and focus on core customers. The sale is expected to improve its loan-to-deposit ratio, free up balance sheet capacity and support share buybacks; First Horizon plans to partially redeploy proceeds into higher-yielding loans in coming quarters.
3. Quarterly loss
First Horizon swung to a loss in the third quarter from a year earlier, booking a $473 million loss on the pending mortgage portfolio sale. The bank had $84.3 billion in assets as of September 30.
