![]() ![]() It changed its name to First Horizon in 2019 after a string of deals across the Southeast extended its footprint well beyond Tennessee’s borders. data, and has been the largest bank based in Tennessee since 2005, when hometown rival Union Planters Bank was bought by Regions Financial.įirst Horizon was founded as the First National Bank of Memphis in 1864 and operated under that name until 1977, when it rebranded as First Tennessee Bank to reflect its statewide expansion. The acquisition would mark the end of an era for Tennessee banking.įirst Horizon is the state’s oldest continuously operating bank, according to Federal Deposit Insurance Corp. “That ought to be a tide that lifts our profitability this year and into next,” First Horizon President and CEO Bryan Jordan said on the call with analysts Monday. ![]() The Tennessee bank has estimated that a gradual 100-basis-point increase to the Fed’s main borrowing rate would net the company upwards of $80 million in added net interest income. TD would have $614 billion of assets, and could stretch its bulked-up commercial and retail banking units in growing markets such as Dallas and Atlanta while expanding its presence in Florida and the Carolinas.įirst Horizon stands to benefit from the Fed’s looming interest rate hikes, which could boost its bottom line while the deal is under review. If the two sides get the deal across the finish line, the payoff could be worth it. “The answer is no,” a TD Bank spokesperson said when asked if the geopolitical crisis gave either side pause. TD insisted the conflict in Europe did not undermine its confidence in the deal as it finalized details in recent days. I think it could distract regulators in unforeseen ways, if anything,” he said. “The Fed was already dragging its feet on deals, and now you have this conflict. The Russian invasion - and the economic and financial uncertainty it is now causing - is bound to complicate the regulatory approval, Marinac said. The potential economic fallout from Russia’s invasion of Ukraine only added to the questions about the time necessary for approval. Given that several large deals faced delays in 2021, and took longer than nine months to close because of added regulatory scrutiny and staffing shortages at the Federal Reserve, the extra 65 cents “is highly likely,” said Chris Marinac, the director of research at Janney Montgomery Scott. “But our expectation is this will close and get approved around the nine-month mark.” “There have been instances where some deals have been slightly delayed, so this would compensate First Horizon shareholders should there be a delay of that nature,” Masrani said during a call with analysts.
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