First Horizon Corporation's Series F preferred stock, a 4.7% non-cumulative perpetual issue with a $25 liquidation preference, closed at $15.35 on October 16, 2026, a 38.6% discount to its par value. That gap, equal to $9.65 per share, is markedly wider than the average discount of 17.7% seen across a broader set of 96 preferred issues tracked for current yield, a divergence that first stood out in data tracked on Preferred Stock AI, a Madison Labs research site.
The discount means the security's current yield, 7.65%, runs well above its 4.7% stated coupon, a mechanical result of the price falling relative to the fixed $1.175 annual dividend paid quarterly. The Series F shares became callable on July 10, 2026, and remain callable now, meaning First Horizon has the option, but not the obligation, to redeem the depositary shares at the $25 liquidation preference. Should that happen, holders who bought at the current discounted price would realize the full par value, a scenario sometimes described in preferred markets as capital appreciation to par, though no such redemption has been announced and none should be assumed.
For investors in bank preferred stock, a discount of this size relative to peers can matter because it often reflects how the market is pricing both interest rate expectations and perceived issuer-specific risk into a fixed-income-like instrument that sits below senior debt but above common equity in the capital structure. The Series F preferred is non-cumulative, meaning any skipped dividend is not owed back to shareholders later, a structural feature that distinguishes it from cumulative preferred stock and one that market participants weigh differently depending on their view of an issuer's dividend reliability. First Horizon's other preferred issues, including series carrying 6.500% and 6.750% coupons, are listed alongside the Series F on the company's securities profile, though the provided data does not include their individual discount levels.
First Horizon is a Memphis, Tennessee-based bank holding company operating primarily through First Horizon Bank, an institution tracing its roots to 1864. As of December 31, 2025, the company reported $84 billion in total consolidated assets and operates more than 450 locations across 23 states, offering commercial and consumer banking, wealth management, capital markets and mortgage banking services. The Series F preferred was issued in May 2021, with proceeds used in part to redeem the company's outstanding Series A Preferred Stock, according to the original SEC prospectus.
The pricing of the Series F preferred comes against a backdrop of recent volatility in First Horizon's common stock and headlines around its underlying business. A Simply Wall St report published October 16, 2026, noted that First Horizon's third-quarter results included a swing to a net loss. Separate Yahoo Finance coverage the same week raised questions tied to the company's mortgage business sale and cited a view that FHN shares could be as much as 49% undervalued, a figure attributed to that analysis rather than confirmed by First Horizon itself. Thelincolnianonline reported on October 16, 2026, that FHN carried an average analyst price target of $27.07, a figure representing the consensus of outside analysts rather than a company forecast. First Horizon's common stock closed at $22.88 that day, up modestly on the session, within a 52-week range of $19.80 to $26.56.
Broader markets on the day showed selling pressure in semiconductor and technology names, with Palo Alto Networks, Palantir, AMD, Intel, Micron, KLA, Applied Materials and Oracle all down between roughly 4.6% and 7.6%, while major cryptocurrencies including Bitcoin and Ethereum traded modestly lower. Those moves reflect sector-specific and risk-sentiment dynamics separate from First Horizon's preferred stock pricing and are not presented as directly connected to the bank's securities.
What investors and market watchers may focus on next includes whether First Horizon exercises its call option on the Series F preferred now that the call date has passed, how the company's third-quarter results and mortgage-sale developments evolve, and whether the discount to par on the Series F narrows or widens relative to the bank's other preferred series and to the broader preferred stock universe. Any changes to the security's price, call status or dividend treatment would be disclosed through company filings and subsequent market pricing rather than through predictions made in advance.