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TD Bank Group had called off its planned acquisition of a Tennessee-based regional bank that would have expanded TD Bank’s presence in the U.S. Southeast.

Toronto-Dominion Bank and Memphis-based First Horizon Corp. said in a joint statement today that they had mutually agreed to terminate the proposed merger. The deal had been announced in February 2022.

The decision came after TD Bank told First Horizon that it did not have a timetable for obtaining regulatory approvals “for reasons unrelated to First Horizon,” according to the statement.

“Because there is uncertainty as to when and if these regulatory approvals can be obtained, the parties mutually agreed to terminate the merger agreement,” the statement said.

As part of the termination agreement, TD Bank will pay $200 million in cash and a $25 million fee reimbursement to First Horizon.

“This decision provides our colleagues and shareholders with clarity,” Bharat Masrani, group president and CEO of TD Bank Group, said in the statement. “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. I want to thank First Horizon for their partnership over the last several months and wish them enormous success for the future.”

TD Bank has about $387 billion in U.S. assets, and First Horizon has about $79 billion in assets.

“While today’s 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 in the statement. “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.”

TD Bank, First Horizon Call Off Merger

by Banker & Tradesman time to read: 1 min