First Horizon Announces $4.5 Billion Mortgage Loan Sale to Boost Earnings and Share Buybacks
On October 15, 2026, First Horizon (FHN) announced the sale of approximately $4.5 billion in low-yielding residential mortgage loans as part of a balance sheet repositioning strategy. The move is intended to free up capital for higher-yield commercial lending and improve profitability. The company expects this transaction to boost earnings per share by around 4% in 2027, while maintaining its common equity tier 1 (CET1) ratio. This will allow First Horizon to resume share buybacks in Q4 of the same year. Management emphasized that these actions align with their long-term strategy focused on full client relationships and improved returns. Customer deposit growth during the quarter exceeded $1 billion, supporting net interest margin stability at 3.48%. The bank is also seeing steady commercial loan demand and plans to reinvest capital into higher-yielding assets in coming quarters.
Tickers: $FHN
Topics: Capital Allocation EPS Growth Mortgage Loans Share Buybacks