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First Horizon Bank's Strategic Gamble: Can Sponsorship of FedEx St. Jude Championship Pay Off?

Victor HaleWednesday, May 7, 2025 3:49 am ET

54min read

The financial sector’s pursuit of high-profile sponsorships continues to grow, with regional banks leveraging local events to bolster brand visibility and community ties. First Horizon Bank’s recent designation as the Official Financial Services sponsor of the 2025 FedEx St. Jude Championship marks a bold move for the Memphis-based institution. This partnership, spanning the August 6–10 tournament at TPC Southwind, positions First Horizon at the intersection of golf, philanthropy, and regional influence. But what does this mean for investors? Let’s dissect the strategic rationale, financial underpinnings, and potential payoffs.

Strategic Rationale: Community Investment Meets Brand Amplification

First Horizon’s sponsorship is a masterclass in aligning corporate identity with regional priorities. As the bank with over 400 branches across the southeastern U.S., its Memphis roots and $81.5 billion in assets (as of March 2025) underscore its position as a pillar of the local economy. The partnership directly supports the FedEx St. Jude Championship’s mission to raise funds for St. Jude Children’s Research Hospital—a cause that has generated over $80 million since 1970, ensuring no family receives a bill for pediatric cancer treatment.

The event’s top 70 FedExCup players and 50-player cutoff for the next playoff round amplify its prestige, offering First Horizon unparalleled visibility to affluent audiences. Midsouth Regional President Bo Allen emphasized the bank’s aim to “deepen regional connections,” a goal that resonates with its customer base. By sponsoring the Pairings Party and Championship Pro-Am—events attended by high-net-worth individuals and corporate leaders—First Horizon is not just marketing its services but reinforcing its role as a trusted financial partner in the community.

Financial Health: Stability Amid Growth Ambitions

To assess the feasibility of such investments, investors must scrutinize First Horizon’s financial backbone. The bank’s Series E Preferred Stock (FHN.PRE), offering a 6.50% annual dividend rate with a liquidation preference of $25 per share, signals confidence in its liquidity and profitability. The upcoming October 10, 2025 call date for this preferred stock could influence investor decisions, as redemption might impact dividend sustainability.

First Horizon’s dividend yield of ~3.2% (as of April 2025) lags slightly behind peers like Regions Financial (~4.1%) but aligns with its growth strategy. The bank’s 12-state footprint and Fortune/Forbes top employer recognition further bolster its appeal. However, the sponsorship’s cost—though undisclosed—must be weighed against its intangible benefits: enhanced brand equity and customer loyalty, which can translate into long-term revenue streams.

Investment Implications: Balancing Risk and Reward

While the sponsorship’s immediate financial ROI is unclear, its strategic value is undeniable. First Horizon’s deepening ties to St. Jude and the PGA TOUR create a halo effect, associating the bank with reputable institutions. For a regional player competing against national banks, this visibility could attract both retail customers and institutional clients.

The 161-year legacy and $81.5 billion asset base also suggest a stable foundation to absorb sponsorship costs without compromising core operations. Meanwhile, the Pro-Am and Pairings Party sponsorships offer direct access to high-value clientele, potentially driving commercial banking and wealth management revenues.

Conclusion: A Calculated Move with Long-Term Payoffs

First Horizon’s sponsorship of the FedEx St. Jude Championship is a calculated bet on its regional influence and community goodwill. With a $81.5B asset base, robust dividend infrastructure (including FHN.PRE’s 6.5% yield), and a 161-year track record, the bank is positioned to sustain such investments. While the immediate financial impact is speculative, the partnership’s alignment with First Horizon’s core values—local investment, philanthropy, and excellence—offers a compelling narrative for investors.

For shareholders, the key metrics to watch include:
- Stock performance post-sponsorship announcement (track via FHN’s YTD returns).
- Preferred stock redemption activity around the October 2025 call date.
- Community engagement metrics, such as new branch partnerships or charitable contributions tied to the sponsorship.

In a crowded banking sector, First Horizon’s blend of regional strength and aspirational sponsorships may just be the edge it needs to outpace competitors. The 2025 FedEx St. Jude Championship isn’t just a golf event—it’s a stage for First Horizon to prove its staying power.

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