Preferred Stock

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Preferred Stock

Preferred Stock

The following table presents a summary of FHN's non-cumulative perpetual preferred stock:

(Dollars in millions)										June 30, 2021		December 31, 2020
	Issuance Date	Earliest Redemption Date (a)	Annual Dividend Rate			Dividend Payments	Shares Outstanding	Liquidation Amount		Carrying Amount		Carrying Amount
Series A	1/31/2013	4/10/2018	6.200	%		Quarterly	—	$	—	$	—	$	95
Series B	7/2/2020	8/1/2025	6.625	%	(b)	Semi-annually	8,000	80		77		77
Series C	7/2/2020	5/1/2026	6.600	%	(c)	Quarterly	5,750	58		59		59
Series D	7/2/2020	5/1/2024	6.100	%	(d)	Semi-annually	10,000	100		94		94
Series E	5/28/2020	10/10/2025	6.500	%		Quarterly	1,500	150		145		145
Series F	5/3/2021	7/10/2026	4.700	%		Quarterly	1,500	150		145		—
							26,750	$	538	$	520	$	470

(a) Denotes earliest optional redemption date. Earlier redemption is possible, at FHN's election, if certain regulatory capital events occur.

(b) Fixed dividend rate will reset on August 1, 2025 to three-month LIBOR plus 4.262%.

(c) Fixed dividend rate will reset on May 1, 2026 to three-month LIBOR plus 4.920%.

(d) Fixed dividend rate will reset on May 1, 2024 to three-month LIBOR plus 3.859%.

During the second quarter of 2021, FHN issued $150 million of 4.70% Series F Non-Cumulative Perpetual Preferred Stock (the Series F Preferred Stock). The Series F Preferred Stock is redeemable at FHN's option, in whole or in part, on or after July 10, 2026. Earlier redemption is possible, at FHN's election, if certain regulatory capital events occur. The $145 million carrying value of the Series F Preferred Stock currently qualifies as Tier 1 Capital.

During the second quarter of 2021, FHN provided notice of its intent to redeem all outstanding shares of Series A Preferred Stock. The redemption was effective July 10, 2021. FHN removed the $100 million outstanding liquidation preference amount of the Series A Preferred Stock from total equity and included it in other liabilities on its Consolidated Balance Sheet as of June 30, 2021, because on the notification date it became mandatorily redeemable. The difference between the liquidation preference and the prior carrying value of the Series A Preferred Stock resulted in a $5 million deemed dividend that was included in EPS.

Subsidiary Preferred Stock

First Horizon Bank has issued 300,000 shares of Class A Non-Cumulative Perpetual Preferred Stock (Class A Preferred Stock) with a liquidation preference of $1,000 per share. Dividends on the Class A Preferred Stock, if declared, accrue and are payable each quarter, in arrears, at a floating rate equal to the greater of the three month LIBOR plus 0.85% or 3.75% per annum. These securities qualify fully as Tier 1 capital for both First Horizon Bank and FHN. On June 30, 2021 and December 31, 2020, $295 million of Class A Preferred Stock was recognized as noncontrolling interest on the Consolidated Balance Sheets.