TD Bank and First Horizon have mutually agreed to terminate their previously announced merger agreement from February 2022. TD informed First Horizon that TD did not have a timetable for regulatory approvals to be obtained for reasons unrelated to First Horizon and the proposed merger. Because of this uncertainty as to when and if these regulatory approvals would be obtained, the parties mutually agreed to terminate the merger agreement.
Under the terms of the termination agreement, TD will make a $200 million cash payment to First Horizon, in addition to the $25 million fee reimbursement due to First Horizon pursuant to the merger agreement. The shares of First Horizon Series G Preferred Stock that TD purchased will continue to reflect a conversion price of $25 per share.
“While [this] announcement is unfortunate and unexpected, First Horizon will continue on its growth path operating from a position of strength and stability,” First Horizon Chairman, President and CEO Bryan Jordan said. “Our strong capital position, disciplined credit quality, expense control measures, and well-diversified and stable funding mix have enabled our business to navigate challenging banking industry dynamics and remain focused on executing our client-centric growth plan. We continue to develop and expand deep client relationships across all of our markets, which include some of the fastest-growing U.S. markets, while maintaining a strong, asset-sensitive balance sheet well-positioned for the current rate environment.”
“This decision provides our colleagues and shareholders with clarity. Though disappointed with the outcome, we move forward with a strong, growing franchise in the United States, servicing more than 10 million customers across our footprint,” TD Bank Group President and CEO Bharat Masrani said. “I want to thank First Horizon for their partnership over the last several months and wish them enormous success for the future. Above all, I want to thank our colleagues at TD Bank … for their tremendous efforts and steadfast dedication to the bank, the millions we serve, and the communities in which we live and work.”