First Horizon offloads $4.5 billion in discounted mortgages
First Horizon is selling $4.5 billion of low-yield home loans at a 10% discount, a move that carries a $473 million loss. The sale is meant to strengthen liquidity and capital.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
This story is no longer being updated. It reflects reporting up to .
What happened
First Horizon is selling a $4.5 billion portfolio of low-yield mortgages at a 10% discount. The move brings a $473 million hit as the bank seeks to improve liquidity, earnings and capital metrics. Following the sale, the company reported a net loss, and its stock has been resetting after recent weakness.
Why it matters
The sale is intended to boost liquidity, earnings and capital metrics. Commentary has raised questions about whether the stock's valuation is supported by the returns the company earns on its capital.
Coverage
- First Horizon (FHN) Stock Could Be 49% Undervalued As Mortgage Sale Raises Questions (Yahoo News)
- First Horizon sells $4.5B mortgage portfolio at discount (Flávia Furlan Nunes)
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