There are 19 article(s) tagged TD Bank:
The $13.4 billion merger between TD Bank Group and First Horizon National Corp. was scrapped last year following months of delays as the financial institutions tried to overcome regulatory oversight of their deal.
Despite potential uncertainty following the dissolution of a $13.4 billion merger with TD, First Horizon says it pulled in 32,000 new-to-bank clients during the quarter, bringing $3.5 billion in deposit balances.
Following the announcement Thursday, which saw First Horizon’s stock down nearly 40%, First Horizon chairman and CEO Bryan Jordan spoke with The Daily Memphian to answer questions related to the terminated merger.
Under the terms of the termination agreement, TD Bank Group will make a $200 million cash payment to First Horizon on top of the $25 million fee due to First Horizon pursuant to the merger agreement. Q&A: What the First Horizon CEO has to say after the termination of TD dealRelated stories:
Because there is uncertainty as to if and when regulatory approvals can be obtained, both banks agreed to terminate the merger agreement.
TD CEO affirms that the deal is unlikely to close by the May 27 deadline but talks with First Horizon remain open.
Both banks have to receive regulatory approval from U.S. oversight authorities, and according to First Horizon, the process is taking longer than anticipated, even as they remain committed to the deal.
The First Horizon buyer is one of five banks that provided services to Stanford Financial Group over 20 years that have paid $1.6 billion to the victims of the Ponzi scheme.
TD has initiated discussions with FHN regarding a potential further extension of the outside date.
TD Bank’s agreement includes a commitment to open 25 new physical bank branches in marginalized communities and a pathway to enable affordable home ownership by increasing residential mortgage loans.
The transaction date has been moved from Feb. 27 to May 27, in accordance with the terms of the merger agreement.
According to the CEO of Toronto-Dominion Bank, the deal has been delayed due to U.S. regulatory oversight as well as the drafting of a community benefits agreement.
“The Southeast and the south of the U.S. was particularly important to us strategically,” Toronto-Dominion Bank CEO Bharat Masrani said. He noted that the region’s population growth is expected to be 50% higher than the national average.
While more than 300 community organizations support the merger, some are pushing for a community agreement between the banks and groups where the institutions have sizable footprints.
During Monday’s luncheon, both FHN and TD Bank N.A. CEOs stressed Memphis’ ongoing role in new institution’s operations.
The luncheon, which will be held at 11:30 a.m. at the Holiday Inn at the University of Memphis, will feature a conversation on TD’s acquisition of FHN.
Federal lawmakers sent a letter to the Office of the Comptroller of the Currency citing a report from investigative news outlet Capitol Forum that TD Bank wrongly pressured customers into opening accounts and using banking services they didn’t want.
The transaction is expected to close early next year.
After multiple mergers and acquisitions, TD Bank became the seventh-largest U.S. bank by deposits and the 11th largest bank in the U.S. by total assets.
About 19 results