TD Bank Group has announced it has signed a definitive agreement to acquire First Horizon Corporation in an all-cash transaction valued at $13.4 billion. Through this transaction, TD said it has accelerated its long-term growth strategy.
“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,” TD Bank Group President and CEO Bharat Masrani said. “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.”
Following the close of the transaction, First Horizon President and CEO Bryan Jordan will join TD as vice chair and join the TD senior executive team. He will also be named to the board of directors of TD’s U.S. banking entities as director and chair.
“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.”
Based on First Horizon’s December 31, 2021, balance sheet, TD will acquire approximately $55 billion in loans and $75 billion in deposits and a credit mark at close to $880 million. TD has agreed, as part of the acquisition, to invest $494 million in non-voting preferred stock to support First Horizon’s growth and franchise enhancements.