First Horizon Corp reports Q3 loss on mortgage sale impact

Overview

• U.S. regional bank's Q3 adjusted EPS met analyst expectations

• Company reported Q3 net loss of $94 mln due to notable items tied to mortgage sale

• Company expects mortgage sale to support future earnings and loan growth

Outlook

• Company expects mortgage portfolio sale to be accretive to earnings going forward

• First Horizon says balance sheet changes will support future loan growth

Result Drivers

• MORTGAGE SALE IMPACT - Net loss driven by notable items related to reclassifying and pending sale of ~$4.5 bln in lower-yielding consumer mortgages

• DEPOSIT GROWTH - Average client deposit balances increased $1.3 bln in the quarter, per CEO Bryan Jordan

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for First Horizon Corporation is $27.00, about 19.1% above its October 14 closing price of $22.67

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Oct 14 - US banks post solid third-quarter loan growth, but face more competition for deposits

• Oct 14 - Home BancShares Q3 revenue rises on net interest income strength

• Oct 14 - Equity Bancshares Q3 core EPS rises on loan growth, lifts dividend

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)