$FHN · FIRST HORIZON CORP
First Horizon's Q3 2026 10-Q shows a swing to a net loss of $83M, or $(0.20) diluted EPS, versus $0.50 EPS a year earlier. Total revenue fell 54.2% to $407M, and pre-provision net revenue was $(122)M versus $339M. The loss was driven by a $473M loss on the pending sale of mortgage loans in the Corporate segment, which closed in October 2026 with no significant change to portfolio valuation.
- Q3 2026 net loss of $83M, or $(0.20) diluted EPS, versus $0.50 EPS a year ago.
- Total revenue fell 54.2% to $407M from $889M in Q3 2025.
- Pre-provision net revenue was $(122)M versus $339M a year earlier.
- $473M loss on pending sale of mortgage loans recognized in the Corporate segment.
- Net interest margin was 3.48%, down from 3.55% a year ago.
Markets closed — no regular-session reaction yet; extended-hours move not captured here.
A one-time $473M mortgage-sale charge flipped First Horizon to a quarterly loss, masking otherwise stable core banking results.
Regional banks exiting mortgage origination/servicing are booking one-time losses on loan sales, compressing near-term earnings despite stable core net interest income.
The $473M mortgage-sale loss and 54.2% revenue decline reflect execution risk in the Corporate segment's loan divestiture; efficiency ratio spiked to 129.56% from 61.92%.