Why First Horizon Stock Is Plummeting Over 50% In Premarket

First Horizon Corp. FHN shares were tumbling in premarket trading on Thursday.

First Horizon and TD Bank Group TD announced that they have agreed to mutually terminate their previously announced $13.4 billion merger agreement. The companies said TD Bank does not have a timetable for regulatory approvals and there is uncertainty over the approval coming through.

TD Bank would make a $200 million cash payment to First Horizon as a termination fee. The Horizon Series G preferred stock that TD purchased will reflect the conversion price of $25 per share, the release said.

First Horizon CEO Bryan Jordan said, “Our strong capital position, disciplined credit quality, expense control measures, and well-diversified and stable funding mix have enabled our business to navigate challenging banking industry dynamics and remain focused on executing our client-centric growth plan."

Although the companies clarified that the termination has nothing to do with the situation at First Horizon, the ongoing crisis among regional banks could increase the jitteriness of investors.

In premarket trading, First Horizon plunged 51.63% to $7.28, according to Benzinga Pro data.

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