First Horizon (FHN) Q3 2026 earnings summary

Executive summary

• Adjusted net income available to common shareholders was $253M and adjusted EPS was $0.53; reported net loss available to common shareholders was $94M, or $0.20 per diluted share, primarily reflecting the mortgage sale.

• Adjusted PPNR was $362M, down 1% QoQ and up 3% YoY; adjusted ROTCE was 14.4%.

• The ~$4.5B sale of lower-yielding consumer mortgages supports a shift toward relationship lending and balance-sheet flexibility.

Financial highlights

• Adjusted FTE NII was $686M, up 1% QoQ and YoY; adjusted FTE revenue was $883M, down 1% QoQ and YoY.

• Adjusted expenses were $521M, down 1% QoQ and 4% YoY; adjusted EPS was up $0.02 YoY and down $0.01 QoQ.

• Adjusted fee income excluding deferred compensation rose $3M QoQ to $198M; fixed-income revenue increased 6% QoQ, with average daily revenue of $629K.

• Net charge-offs rose to $36M, or 22 bps; provision for credit losses was a $20M benefit excluding the mortgage restructuring impact.

Outlook and guidance

• Mortgage sale expected to add $45M, or 4%, to 2027 after-tax earnings and improve ROTCE by ~150 bps; further accretion depends on loan redeployment.

• 2026 adjusted revenue growth was expected at the low end of the 3%–7% range; adjusted expenses excluding deferred compensation were guided flat at $2.05B.

• 2026 net charge-off guidance was 0.15%–0.25%, tax rate 21%–23%, and CET1 10.25%–10.5%.

• NIM was expected to move into the 3.50s in Q4; positive operating leverage was expected in 2027 and planned into 2028.