FHN

First Horizon announced the sale of $4.5 billion in low-yielding residential mortgage loans to reposition its balance sheet toward higher-yielding commercial lending. The transaction is expected to boost 2027 earnings per share by approximately 4% and improve return on tangible common equity by 150 basis points. The bank will resume share buybacks in Q4 while maintaining its capital ratios, supported by over $1 billion in new customer deposits during Q3.

First Horizon National reported Q3 2026 earnings of $0.53 per share, matching consensus estimates but missing revenue expectations at $880 million. The stock has underperformed the S&P 500 by 18% year-to-date.

With a Zacks Rank #3 (Hold) rating, the company is expected to perform in line with the market. Southside Bancshares is expected to report earnings of $0.79 per share with revenues of $72.55 million.

First Horizon National is expected to report Q3 2026 earnings of $0.53 per share (up 3.9% YoY) with revenues of $889.7 million (up 0.1% YoY) on October 15. However, the stock carries a negative Earnings ESP of -0.55% with a Zacks Rank #3, making it difficult to predict an earnings beat. While the company has beaten consensus estimates in the last four quarters, recent analyst revisions suggest bearish sentiment on near-term earnings prospects.

The Federal Reserve's 25-basis-point rate hike to 3.75-4% is expected to benefit First Horizon Corporation's net interest income, given its 58% variable-rate loan portfolio and $6 billion in maturing fixed-rate assets available for reinvestment at higher yields. However, rising deposit costs and potential loan demand weakness could offset some gains. Bank of America and Citigroup are similarly positioned to benefit from higher rates, though both face headwinds from increased deposit funding costs.

Private Bancorp of America is expected to report Q3 2026 earnings of $2.07 per share (up 25.5% YoY) with revenues of $34.84 million (up 10.6% YoY). However, the stock carries a negative Earnings ESP of -2.42%, making it difficult to predict an earnings beat despite its Zacks Rank #2 (Buy) rating. The company beat estimates in only 2 of the last 4 quarters.