First Horizon Corp (NYSE: FHN) shares are trading lower Thursday after the company and Toronto Dominion Bank (NYSE: TD)
mutually agreed to terminate their merger agreement. Several other bank names are also under pressure.
What Happened: First Horizon and TD Bank entered into a mutual agreement to terminate their previously announced merger due to uncertainty surrounding regulatory approvals.
Under terms of the agreement, TD will make a $200 million cash payment to First Horizon in addition to a $25 million reimbursement fee pursuant to the merger agreement.
What Else Is Going On: Several other bank stocks are facing heavy selling pressure Thursday after PacWest Bancorp (NASDAQ: PACW) said it's weighing strategic options, which reportedly includes a potential sale.
PacWest said it has been approached by several potential partners and investors recently and discussions are ongoing.
The news comes just days after JPMorgan Chase & Co (NYSE: JPM) acquired a substantial majority of assets and assumed deposits and other liabilities of First Republic from the FDIC. Broader concerns around the banking sector have continued to pressure the financials.
Some regional banks stocks trading lower include Western Alliance Bancorp (NYSE: WAL), Regions Financial Corp (NYSE: RF) and Citizens Financial Group Inc (NYSE: CFG). The SPDR S&P Regional Banking ETF (NYSE: KRE) was last down 9.28% at $34.64.
Selling pressure has also spread to names like Bank Of America Corp (NYSE: BAC), Wells Fargo & Co (NYSE: WFC) and U.S. Bancorp (NYSE: USB).