FHN First Horizon Corporation

First Horizon National Corp. said Monday in a regulatory filing that it believed it had lost an arbitration hearing before Wall Street's watchdog agency and was facing a possible $11.5 million penalty.

The bank said it faced claims of fraud and breach of contract tied to the purchase of preferred term securities by First United Bank & Trust from First Horizon unit FTN Financial Securities Corp.

First Horizon said it was advised that the Financial Industry Regulatory Authority, or Finra, had reached a decision which it had not yet seen. First Horizon said that after consulting with its lawyers, following the proceedings, it appeared that it would face as much as an $11.5 million award, far less than the $46.5 million being sought by plaintiffs.

In the filing submitted to the Securities and Exchange Commission, First Horizon said it hadn't established a liability or reserve for this arbitration in its financial statements.

Write to Ezequiel Minaya at ezequiel.minaya@wsj.com

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(END) Dow Jones Newswires

October 26, 2015 09:05 ET (13:05 GMT)

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