SBNY - First Horizon drops amid SVB Financial crisis as investors await TD Bank close

2023-03-10 15:41:25 ET

First Horizon ( NYSE: FHN ), which is in the middle of sale to TD Bank ( NYSE: TD ), fell 4% as bank stocks tanked in the wake of the collapse of SVB Financial Group. TD Bankfell 2%.

First Horizon's minor drop pales in comparison to other banks associated more closely with SVB Financial, including First Republic ( FRC ), which fell 14%, Signature Bank ( SBNY ), which dropped 23% Western Alliance ( WAL ), which plunged 27% , and PacWest Bancorp ( PACW ), which declined 33%.

The drop in First Horizon ( FHN ) follows after the shares fell 11% on March 1 after TD Bank ( TD ) said it doesn't expect it will receive regulatory in time to complete its $13.4 billion acquisition by May 27. TD initiated discussions with First Horizon regarding a potential further extension of the outside date.

TD Bank ( TD ) CEO Bharat Masrani on a March 2 earnings call didn't deny that a price change for First Horizon ( FHN ) was possible as the deal drags on and passes the termination date.

"We'll we've just initiated the negotiations and, you know, once the negotiations are finalized, you know, we will be sure to give you further details," Masrani said on the call in an answer to analyst's question if a price change is a possibility.

U.S. lawmakers in June asked a banking regulator to block Toronto-Dominion's ( TD ) planned acquisition. Sen. Elizabeth Warren (D-MA) sent a letter to the Office of the Comptroller of the Currency, asking the regulator to block the transaction over concerns about aggressive sales tactics.

TD Bank ( TD ) agreed to acquire First Horizon ( FHN ) in an all-cash transaction worth $13.4B or $25/share of First Horizon more than a year ago.

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