First Horizon Corp reports Q3 loss on mortgage sale impact

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Meet

$0.53

$0.53 (20 Analysts)

Q3 Loss Per Share

$0.20

Q3 Net Loss

$94 mln


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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