First Horizon and TD Bank terminate merger agreement

Tennessee-based First Horizon and Canadian TD Bank announced that they have mutually terminated the merger agreement they announced last year. In a joint statement from the two banks, it was reminded that the merger agreement was signed in February of last year. It was noted that TD Bank did not have a timetable for obtaining regulatory approvals due to reasons unrelated to First Horizon, and that due to uncertainty about when and whether these approvals could be obtained, the parties mutually agreed to terminate the merger agreement. The statement stated that under the terms of the termination agreement, TD Bank will pay First Horizon $200 million in cash and that the parties will have no other obligations related to the merger agreement. In his assessment of the issue, First Horizon CEO Bryan Jordan stated that although the termination agreement was "unfortunate and unexpected", First Horizon will continue on its path of growth by acting from a strong and stable position. TD Bank Group CEO Bharat Masrani also thanked First Horizon for their partnership over the last few months, despite the "disappointing" outcome. Shares of Tennessee-based First Horizon fell nearly 40 percent after it was announced that its merger deal with Canada's TD Bank had been terminated.