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February 28, 2022

TD Bank, Maine’s market leader, to expand its footprint with deal for Southeast bank

Toronto-Dominion Bank Group, the parent of the leading bank in Maine, will buy First Horizon Corp. (NYSE: FHN) for $13.4 billion in cash to expand in the southeastern United States in the largest ever deal for Canadian bank.

It will pay $25 for each First Horizon share, a 37% premium to the Memphis-based bank’s closing stock price on Friday. 

TD Bank, which has 39 branches in Maine, is Maine's market-share leader, with nearly $5.7 billion in deposits and 13.59% of the market, according to June 2021 data from the Federal Deposit Insurance Corp. By market share, the top 5 banks in Maine are TD, Bangor Savings Bank, Camden National Bank, KeyBank and Bank of America. 

The deal was part of a move by TD to hunt for U.S. acquisitions and move the company beyond its East Coast footprint. The deal would make TD’s U.S. subsidiary one of the nation’s top six banks, with $614 billion in assets, the company said.

First Horizon has 412 branches and more than 1.1 million individual and business customers across 12 states. It has leading positions in Tennessee and Louisiana; a presence in Florida, the Carolinas and Virginia; and “important footholds” in Atlanta, Dallas and Houston, TD said.

The deal also gives the Canadian company additional capabilities in commercial banking and adds to its fixed-income sales and trading businesses.

TD also said it was terminating an automatic share purchase plan under its buyback plan.

The First Horizon deal is expected to close in the first quarter of Toronto-Dominion’s fiscal 2023. 

In 2013, TD dropped Portland as one of two U.S. headquarters, consolidating its leadership in the more central location of Cherry Hill, N.J. The shift away from Portland followed years of acquisitions by the bank’s Toronto-based parent, which bought Portland-based Banknorth, founded in 1852, in 2004.

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