Analysis
The loss comes mainly from an accounting step tied to a planned sale rather than from a sudden change in everyday lending. When a bank decides to sell loans it had planned to hold, they are carried at the lower of cost or market value, and any shortfall is recorded right away. The bank says the sale will add to earnings going forward and free up room for new lending; the release does not give the sale price or the buyer.
What First Horizon reported
On October 15, 2026, First Horizon Corporation (NYSE: FHN) reported results for the quarter ended September 30. It posted a net loss available to common shareholders of $94 million, or a loss of $0.20 per share [1]. The company said the results reflect strategic actions to align its balance sheet with its growth priorities [1].
During the quarter, the bank began evaluating a sale of about $4.5 billion of select lower-yielding consumer mortgages. In early October it entered into an agreement to sell them, and it expects the transaction to settle early in the fourth quarter [1].
The adjusted figure
Excluding notable items, First Horizon reported adjusted earnings per share of $0.53 for the quarter. That was down $0.01 from the second quarter of 2026 and up $0.02 from the third quarter of 2025 [1]. Adjusted results are a non-GAAP measure, meaning they are not calculated under U.S. generally accepted accounting principles, and the company's reconciliation to the GAAP figures is in its full earnings release [1].
The notable items totaled $0.73 per share, or $347 million after tax, and were primarily related to reclassifying the targeted mortgage loans as held for sale in connection with the pending sale [1].
What management said
Chairman, President and CEO Bryan Jordan said average client deposit balances rose $1.3 billion in the quarter and that the bank is focused on full client relationships and deploying capital where it best serves long-term value [1]. The company says the mortgage sale will be accretive to earnings on a go-forward basis and will give the balance sheet flexibility to support future loan growth [1]. These are management's characterizations.
First Horizon reported $84.3 billion in assets as of September 30, 2026, and operates First Horizon Bank in 12 states, concentrated in the southern United States [1]. The press release excerpt does not include a numeric earnings forecast.
What remains uncertain
The sale has been agreed but had not yet settled as of the release, and the release does not name the buyer or price. Adjusted figures are company-defined non-GAAP measures. This summary draws on the short press release; the full earnings release and filings contain the detailed tables.