TD Bank Group to acquire First Horizon: 5 things to know about $13.4 billion deal

Toronto-Dominion Bank Group announced Monday it will acquire Memphis-based First Horizon in a $13.4 billion deal.

Here are five things to know about the deal.

What are the terms of the First Horizon Bank and TD Bank Group deal?

Toronto-based TD Bank Group announced the $13.4 billion all-cash agreement to obtain Memphis-based First Horizon as part of the group's plans to accelerate its growth in the U.S., according to a news release on the deal.

TD Bank Group is paying $25 for each share of First Horizon.

First Horizon stock prices soared after Monday's news. On Monday afternoon, the price was $23.50, up about 29% from Friday's close at $18.25.

FIRST HORIZON: Memphis-based First Horizon to be acquired by Toronto-Dominion in $13.4 billion deal

First Horizon's President and Chief Executive Officer Bryan Jordan will join TD Bank Group as vice chair, once the deal closes. Jordan will report to Bharat Masrani, TD group president and chief executive officer, and join the company’s senior executive team.

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

So far, TD Bank Group has no planned closures of First Horizon banking centers in connection with the transaction.

TD Bank's President Leo Salom will lead the combined businesses, according to the news release.

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When is the First Horizon and TD Bank Group deal expected to close?

The transaction is expected to close by the first quarter of TD Bank Group's 2023 fiscal year.

If the deal 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 if it does not close by Feb. 27, 2023, unless otherwise extended.

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

How will the transaction affect Memphis?

Jordan said the intercountry transaction will not have much impact on Memphis or the First Horizon franchise.

“Over time I think what you will see is that TD is committed to especially Memphis. It's going to be a regional hub," he said.

"For our customers and our community, it will allow us to bring together a better product set, better technology and a leverage the scale of a $1.8 trillion global organization and their broad capabilities."

Over the period of about two years there will not be "a whole lot of change," but customers will eventually experience the benefit of a more technologically advanced product set and the bigger balance sheet, Jordan said.

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What to know about First Horizon

First Horizon is the largest Memphis-area bank by deposits, according to data from the Federal Deposit Insurance Corporation.

The company reported $89 billion of assets as of Dec. 31. It 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 announced in 2019 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.

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

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First Horizon also acquired Capital Bank and Trust of Charlotte, North Carolina, in 2017 for $2.2 billion. Capital contained $10 billion in assets at the time.

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What to know about TD Bank Group

The Canadian company will become a top six U.S. bank, as a result of the deal.

The group is currently considered a top 10 North American bank, according to its website.

TD Bank Group will have about $614 billion in assets and a network of 1,560 stores, serving more than 10.7 million customers in 22 states.

The company will have $1.8 trillion in assets globally, with more than 2,600 branches serving 27.5 million customers worldwide.

Presently, the group offers financial products and services to more than 26 million customers worldwide and has more than 15 million active online and mobile customer, according to TD Bank Group's website.

The Toronto-Dominion Bank came to charter on Feb. 1, 1955, with the merger of the Bank of Toronto, founded in 1855, and the Dominion Bank, established in 1869.

Together, the bank acquired Canada Trust in 2000 and entered into U.S. retail banking with the acquisition of Banknorth in 2005.

Then the company gained Commerce Bancorp in 2008 and integrated it with TD Banknorth to form TD Bank, America's Most Convenient Bank.

Commercial Appeal writer Omer Yusuf contributed to this report.

Dima Amro covers the suburbs for The Commercial Appeal and can be reached at Dima.Amro@commercialappeal.com or on Twitter @AmroDima.

This article originally appeared on Memphis Commercial Appeal: TD Bank Group to acquire First Horizon: 5 things to know