CHERRY HILL – The parent firm of TD Bank plans to expand into new markets with the $13.4 billion acquisition of a Tennessee-based bank firm.
The planned acquisition of First Horizon Corp. will give the Cherry Hill-based TD “important footholds” in the Atlanta, Dallas and Houston markets, the companies said in a statement Monday.
First Horizon also would provide “leadership positions” in Tennessee and Louisiana, as well as additional density for TD in Florida, Virginia and the Carolinas, the statement said.
“The Southeastern U.S. represents a tremendous opportunity for TD,” said Leo Salom, president and CEO at TD Bank.
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First Horizon’s markets collectively are growing about 50 percent faster than the U.S. national average, with some “far exceeding that level,” the statement said.
Salom, who will lead the combined businesses, asserted First Horizon’s “commercial and specialty banking capabilities will position us as a leading national player in commercial banking.”
The pending deal would make Cherry Hill-based TD Bank a Top 6 U.S. bank with about $614 billion in assets and more than 1,500 offices in 22 states.
First Horizon, which is to adopt TD’s brand, operates 412 branches and serves more than 1.1 million customers in 12 states.
It ended 2021 with assets of $89 billion.
TD said it will use excess capital on its balance sheet for the $25-per-share transaction, which awaits regulatory and shareholder approval.
It also has agreed to provide $494 million “to support First Horizon’s growth and franchise enhancement,” as well as $40 million for a First Horizon foundation.
The $25-per-share cash acquisition by TD Bank Group is expected to close in the first quarter of the firm’s 2023 fiscal year, which begins Nov. 1.
First Horizon President and CEO Bryan Jordan will become vice chair of the parent firm, the statement said. He will also become a director and chair of TD’s U.S. bank operations.
Jordan will continue to be based in Memphis, which would become “an important regional hub for TD in the U.S. Southeast,” the companies said.
No branch closures are planned.
Jim Walsh covers public safety, economic development and other beats for the Courier-Post, Burlington County Times and The Daily Journal.
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Source: courierpostonline.com
