TD Bank Group buying IBERIABANK parent company, becoming one of the largest banks in U.S.
TD Bank Group, the Canadian financial giant with more than 26 million U.S. customers, will soon be the owner of former IBERIABANK locations following the acquisition of First Horizon on Monday.
First Horizon, a Memphis-based banking group, bought IBERIABANK in 2020 and began the process of rebranding IBERIABANK locations as First Horizon, with signs going up across Acadiana in the last several weeks. As part of the merger, Acadiana lost the IBERIABANK headquarters as First Horizon set up its regional headquarters in New Orleans.
The sale is expected to be completed in the first quarter of 2023.
"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, the president and CEO of TD. "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."
Business Buzz: First Horizon purchase of IBERIABANK finalized
TD is buying First Horizon for $13.4 billion, according to a release from the two banking groups. When First Horizon bought the 132-year-old IBERIABANK the combined group became one of the largest 25 banks in the U.S.
With TD's purchase of First Horizon, the banking group grows its footprint in the southeastern U.S. and will be one of the six largest banks in the U.S. with $614 billion in assets and 1,560 locations across 22 states. The acquisition gives TD leadership positions in Louisiana and Tennessee, a stronger presence in Florida, the Carolinas and Virginia and footholds in Atlanta, Georgia, as well as in Dallas and Houston, Texas.
First Horizon had assets of $89 billion with 412 branches in 12 states and 1.1 million customers. According to the release, First Horizon's markets were expected to grow 50% faster than the U.S. average.
The company did not say in its release or in its presentation to investors whether First Horizon locations would rebrand as TD. As a result of its merger with IBERIABANK, First Horizon ranks first in the Lafayette metro area for deposits with 20.7% of the market share.
Bryan Jordan, the CEO of First Horizon, will remain based in Memphis and will be the vice chair of TD Bank Group and a member of the senior executive team. He will also be director and chair of the board of directors for TD's U.S. banks.
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"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.
"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. Thank you to our First Horizon associates for their efforts and dedication to our clients and communities as we continue to deliver for them every day. We look forward to successfully completing this transaction and are excited to join TD."
The company is expecting to save around $610 million in synergies as a result of the merger. The company is investing $494 million to improve First Horizon and to keep members of its leadership team, and plans to use $150 million to pay for employee retention incentives.
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TD is also investing $40 million in the First Horizon Foundation, which funds projects in its communities. As part of its merger with IBERIABANK, First Horizon committed $20 million for community work in Louisiana.
This article originally appeared on Lafayette Daily Advertiser: TD Bank Group buying former IBERIABANK, First Horizon
