First Horizon Corporation announced that it will redeem all 400,000 shares of its 6.600% Fixed‑to‑Floating Non‑Cumulative Perpetual Preferred Stock, Series C, on May 1 2026. The redemption will be executed through the company’s depositary share structure, with 160 million Series C Depositary Shares being cancelled at a redemption price of $25.00 per depositary share, equivalent to $10,000 per preferred share.
The transaction will remove $10 million of preferred equity per share from First Horizon’s balance sheet, reducing the company’s preferred capital base and improving its capital ratios. The redemption is being carried out by Equiniti Trust Company LLC, the designated redemption agent. By eliminating the Series C preferred layer, First Horizon simplifies its capital structure and frees up capital that can be deployed toward growth initiatives or returned to shareholders.
This move is part of First Horizon’s broader capital deployment strategy, which has been focused on maintaining a Common Equity Tier 1 (CET1) ratio between 10% and 10.5%. The company recently completed a $400 million issuance of Series H preferred stock in March 2026 to strengthen its capital position, and the Series C redemption now aligns the capital base with that new structure. Removing the preferred equity also reduces the company’s cost of capital and provides greater flexibility for future lending, technology investments, and potential share‑buyback programs.
First Horizon’s history of redeeming preferred stock—most recently the Series B redemption completed in August 2025—demonstrates a consistent strategy of optimizing capital. The Series C redemption is expected to improve capital ratios and support the bank’s mid‑single‑digit loan growth and revenue targets, while keeping the capital base in line with regulatory expectations. The action reflects the bank’s ongoing effort to balance shareholder returns with prudent capital management in a competitive banking environment.
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