TD Bank plans to open a major branch in Charlotte | Local


TD Bank Group is not awaiting regulatory approval for its $13.4 billion purchase of First Horizon National Corp. to herald a big splash in the Charlotte market.

The Toronto-based bank announced on Thursday that it will open two branches in Charlotte by summer 2023 and 15 in total by 2025, making it the latest national or super-regional bank to try to get there. implant.

Currently, First Horizon has 13 branches in the Charlotte-Gastonia-Concord Metropolitan Statistical Area, including two in Charlotte and one in Cornelius and one in Matthews.

Meanwhile, First Horizon has 12 branches in Forsyth County and 30 total in the Triad and Northwestern North Carolina.

“Charlotte is one of the fastest growing markets in the country, with significant economic and population growth,” TD Bank President and CEO Leo Salom said in a statement.

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At least four of the branches would be located in majority-minority or low-to-moderate income areas.

“We recognize the need for many consumers to gain convenient access to banking services, and we look forward to serving these diverse communities,” said Salom.

The branches are expected to bring 100 full-time and part-time jobs to Charlotte, adding to the bank’s nearly 200 Metro employees in operations that include commercial real estate, middle market and commercial lending segments since 2013 .

CFRA Research analyst Alexander Yokum said North Carolina is a highly desirable banking market, even with Bank of America Corp. and Truist based in Charlotte and Wells Fargo with a major presence there as well.

In recent months, JPMorgan Chase & Co., US Bancorp and Fifth Third Bancorp have aggressively added branches in the Charlotte and Triangle markets, although they are not interested in the Triad at this time.

“The handset (TD) will have a significant presence in the Northeast/Mid-Atlantic states, as well as the fast-growing and attractive Southeast region,” Yokum said.


TD Bank is taking on a challenge in North Carolina that has baffled most non-Southeast super-regional banks entering the market.

Namely, how to grow the market share of NC filings beyond what they spent hundreds of millions, if not billions of dollars to acquire.

TD slowly created a presence in North Carolina with 11 branches in the Asheville, Foothills and Wilmington markets.

The First Horizon purchase would be the second-biggest U.S. banking deal since the Great Recession of 2008-11, eclipsed only by the $33.5 billion purchase by BB&T Corp. of SunTrust Banks Inc. in December 2019 which led to the creation of Truist Financial Corp.

The deal is expected to close by the first quarter of fiscal 2023. First Horizon shareholders approved the mega-deal on May 31.

However, Sen. Elizabeth Warren, D-Mass., requests that the Federal Office of the Comptroller of the Currency consider blocking TD’s bid. U.S. Representatives Katie Porter, D-California, and Jesus Garcia, D-Ill., joined the request.

“We continue to expect First Horizon to be acquired by The Toronto-Dominion Bank,” Yokum said.

“However, US regulators have been slow to approve the deals lately, so we consider the initial close of the early 2023 target to be likely to be delayed.”

The purchase of First Horizon would allow it to gain another 92 NC branches. First Horizon has approximately 412 branches in 12 states, primarily in Florida, Tennessee and North Carolina.

“The Greater Charlotte area is increasingly attractive to new residents and businesses, and TD Bank is well positioned to serve all customers and businesses, wherever they are in their financial journey,” said Hugh. Allen, TD Bank Regional President for the Mid-South Metro. division.

Desirable Southeast

Yet the NC and Triad banking sectors have demonstrated consistently throughout the 21st century that achieving modest to large increases in deposit holdings does not necessarily change the needle on market share.

Just ask the banks which include First Horizon, as well as Wells Fargo & Co., PNC Financial Services Group, SunTrust Banks Inc., Fifth Third Bancorp, FNB Corp., Pinnacle Financial Partners Inc. and Bank OZK.

Chris Marinac, along with Janney Montgomery Scott, calls TD’s bid for First Horizon “a game changer for other banks in several southeast and southwest markets.”

Until recently, bank acquisitions tended to result in a 5-15% customer drop in the first year due to account problems or the preference of not wanting to be a megabank customer.

“Several banks, large and small, that compete within First Horizon and the former IberiaBank footprint are possible beneficiaries of the combination,” Marinac said.

“In our view, TD needs to restart the systems upgrade process and eventually execute on this opportunity.

“In our minds, this leaves First Horizon customers wide open to competitors – this is especially true at a time of huge changes in digital banking products and initiatives across the banking industry.”

Zagros Madjd-Sadjadi, a professor of economics at Winston-Salem State University, said, “I think this deal is much better on paper than it is in practice.”

“While this will certainly significantly increase TD’s asset base in the region, and TD is a major bank both domestically and globally, I just don’t think it has the notoriety which will allow it to compete effectively here in the Southeast with companies like Truist, Bank of America and Wells Fargo.

“It has to be a long-term game if it’s going to work for TD, as the first reaction from local customers is likely to be one of skepticism, especially in light of RBC’s unsuccessful foray into our region as RBC and TD are similar in size. and similarly managed banking giants.


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