Knoxville customers shouldn't expect changes after Toronto-Dominion Bank Group announced Monday it would acquire Memphis-based First Horizon in a $13.4 billion all-cash transaction.

There are no plans to close branches as a result of the transaction, and Toronto-Dominion is committed to retaining "all client facing bankers," First Horizon spokesperson Courtney Potts said in a written statement to Knox News.

First Horizon has 25 offices and almost 600 employees in the Knoxville area, according to Potts and the 2022 Knox.biz Book of Lists. Last year, the bank reported a 16.42% local market share and $4.28 billion in local deposits.

"(East Tennessee President Dave Miller) and the rest of the East Tennessee leadership team intend to continue our long history of community investments in Knoxville," Potts said in the statement.

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Potts said Toronto-Dominion has committed to investing $40 million in the First Horizon Foundation, the bank’s private charitable foundation, “to further our important work.”

TD Bank Group is paying $25 for each share of First Horizon. For Toronto-based TD, the acquisition of First Horizon is part of plans to accelerate its growth in the U.S., according to a news release on the agreement.

"First Horizon is a great bank and a terrific strategic fit for TD. It provides TD with immediate presence and scale in highly attractive adjacent markets in the U.S. with significant opportunity for future growth across the Southeast," said Bharat Masrani, TD group president and chief executive officer. "Working with the First Horizon team, TD will build upon the success of its strong franchise and deliver the legendary customer experiences that differentiate us in every market across our footprint."

The transaction is expected to close by the first quarter of TD’s 2023 fiscal year. First Horizon is the largest local bank by deposits, according to data from the Federal Deposit Insurance Corporation.

If the transaction does not close by Nov. 27, First Horizon shareholders will receive an additional $0.65 per share on an annualized basis from Nov. 27 through the day immediately prior to closing. The transaction will terminate, unless otherwise extended, if it does not close by Feb. 27, 2023.

TD expects to incur $1.3 billion in total merger and integration costs in the first two years after the deal closes.

Once the deal closes, Bryan Jordan, president and chief executive officer of First Horizon, will join TD as TD Bank Group as vice chair. He will report to Masrani and join the Canadian company’s senior executive team.

He will also be the named to TD’s U.S. banking entities board of directors as a director and chair. Jordan will remain based in Memphis, according to the news release.

"We have built a very strong business at First Horizon, and by joining forces with TD, we will create extraordinary value for our key stakeholders with a shared customer-centric strategy, enhanced scale and a broader product set for our clients. This is a true growth story," Jordan said in a statement. "We have long respected TD as a leader in U.S. banking and are confident that its continued and growing investments in our local markets will extend our long history of community support.”

TD’s U.S. franchise will become a top six U.S. bank, as a result of the deal. TD will have about $614 billion in assets and a network of 1,560 stores, serving more than 10.7 million customers in 22 states. TD Bank Group will have $1.8 trillion in assets globally, with more than 2,600 branches serving 27.5 million customers worldwide.

First Horizon reported assets of $89 billion as of Dec. 31. The Memphis-based company operates 412 branches and serves more than 1.1 million consumer, business and commercial customers across 12 states. First Horizon has about 5,500 employees nationwide, according to its website.

Memphis’ largest homegrown bank is no stranger to mergers or significant changes in recent years. In 2019, First Horizon announced a branding change to combine First Tennessee Bank, Capital Bank, FTB Advisors and FTN Financial under its current name to simplify customer and branding experience.

First Horizon Tower, located at 800 S. Gay St., recently added a new sign to the structure as part of the bank’s rebranding from First Tennessee. The 39-foot-tall structure adds to the building’s status as the tallest in Knoxville.

In 2020, First Horizon absorbed Iberiabank Corp. of Lafayette, Louisiana in a $3.9 billion stock deal.

That followed the Memphis company’s acquisition of Capital Bank and Trust of Charlotte, North Carolina in 2017 for $2.2 billion. Capital contained $10 billion in assets at the time.

TD is hoping to benefit from First Horizon’s U.S. presence including in Florida, the Carolinas and Virginia and footholds in the Atlanta, Georgia, Dallas and Houston markets, according to the release.

First Horizon’s markets are expected to grow approximately 50% faster than the U.S. national average offering potentially even more growth opportunities for TD as it further invests in the new market, according to the release.

This story will be updated.

Knox News reporter Silas Sloan contributed to this story.

Omer Yusuf covers the Ford project in Haywood County, residential real estate, tourism and banking for The Commercial Appeal. He can be reached via email Omer.Yusuf@commercialappeal.com or followed on Twitter @OmerAYusuf.

This article originally appeared on Memphis Commercial Appeal: First Horizon to be acquired: What it means for Knoxville customers