MEMPHIS, Tenn., July 17, 2008 (PRIME NEWSWIRE) -- First Horizon National Corp.'s (NYSE:FHN) board of directors has approved distribution on Oct. 1, 2008, of the regular quarterly dividend, for the first time payable in shares of common stock. The dividend rate will be 3.0165 percent, which means that 30.165 new dividend shares will be distributed for every 1,000 shares held on the record date of Sept. 12, 2008.
The dividend rate was determined to provide shareholders with new shares having a value of 20 cents for each share held on the record date, based on First Horizon's volume weighted average stock price on July 11, 2008, of $6.5328 per share.
"Improving capital is prudent in this challenging operating environment, but we also recognize that a dividend is important to many of our shareholders," said First Horizon CEO Jerry Baker. "Through this stock dividend, shareholders have the option to generate a cash-like yield, if so desired, by selling the newly issued shares from the dividend."
Baker cited the stock dividend as one of several steps the company has taken to bolster its capital position, including the issuance of $660 million in new common equity.
Dividend shares, including any fractional shares, will be issued electronically and distributed to shareholders of record in direct registration form through First Horizon's transfer agent. Each record shareholder will receive a statement indicating the number of dividend shares deposited in his or her account. Paper stock certificates for whole shares will be available upon request from our transfer agent. Additional details concerning the dividend will be made available in the investor relations area of First Horizon's Web site and will be provided to shareholders of record in a company communication closer to the record and distribution dates.
About First Horizon
The 9,000 employees of First Horizon National Corp. (NYSE:FHN) provide financial services to individuals and business customers through hundreds of offices located in more than 40 states. The corporation's three major brands -- FTN Financial, First Horizon and First Tennessee -- provide customers with a broad range of products and services including:
* Retail/commercial banking, with the largest market share in Tennessee and one of the highest customer retention rates of any bank in the country * Capital markets, one of the nation's top underwriters of U.S. government agency securities * Mortgage banking, one of the nation's top mortgage originators and recipient of consecutive awards for servicing excellence from Fannie Mae and Freddie Mac. Upon closing of the sale of its retail and wholesale mortgage offices nationwide and its loan origination and servicing platform outside Tennessee, the company will continue this business in its First Tennessee Bank markets in and around Tennessee
FHN has been recognized as one of the nation's best employers by AARP and Working Mother magazines. More information can be found at www.fhnc.com.
FHN-G