Menu
Banking Exchange Magazine Logo
Menu

First Horizon Continues M&A with Truist Branch Purchases

First Horizon has acquired 30 North Carolina branches from Truist, adding $2.3 billion in deposits

  • |
  • Written by  Banking Exchange staff
  • |
  • Comments:   DISQUS_COMMENTS
First Horizon Continues M&A with Truist Branch Purchases

The branches are spread across Durham, Chapel Hill and Winston-Salem in North Carolina, as well as four markets in Virginia and two in Georgia, according to a press release from First Horizon announcing the deal.

The transaction has also added $440 million to First Horizon’s loan book.

“Today marks another milestone for First Horizon as we continue to build a leading southern financial services organization,” said the bank’s president and CEO Bryan Jordan.

“In addition to our recent merger of equals with IBERIABANK, this transaction enhances our ability to serve clients and communities, accelerate growth and drive long-term shareholder value.

“Our associates have worked diligently to get us to this day, and I thank them for their tireless effort especially during these challenging times.”

Truist was the number one Paycheck Protection Program (PPP) lender for North Carolina according to data from the Small Business Administration, facilitating more than 15,000 loans worth in excess of $2.5 billion.

The branches – which previously traded under the SunTrust brand – were relabelled as First Horizon over the weekend of July 17-19, the bank said.

Tennessee-headquartered First Horizon has been reopening its premises since June 4, with branches now operating with limits on how many people can be inside at one time.

Announcing its second quarter results last week, the banking group said it had set aside $110 million in provisions for expected losses, down by $35 million compared with March 31, 2020. The figure included a $93 million reserve fund linked to the effects of COVID-19.

Net income was $52 million, the bank reported, up from $12 million in the first quarter.

First Horizon completed its merger with IBERIABANK at the start of this month. Following these two transactions, the group has approximately $86 billion in assets, $68 billion in deposits and $59 billion in loans across nearly 500 premises.

The branch sales also coincided with Truist’s second-quarter results. The bank reported adjusted net income of $1.1 billion and provisions for credit losses of $844 million.

Chairman and chief executive Kelly King said the provisions gave “strong coverage”, adding that the bank’s loan books had also performed well under recent regulatory stress tests.

“I am pleased with our overall performance and Truist’s actions to support all our stakeholders in this challenging and ever-changing operating environment,” King said.

“Our core financial performance during the quarter was strong, particularly in light of the challenging interest rate and credit environment.”

back to top

Sections

About Us

Connect With Us

Resources

Webinar: From KYC to IDV

How three leading banks are utilizing cutting-edge
digital tools to onboard, win, and wow customers

Time/Date: June 23, 2021 11:00 a.m. ET

Digital adoption, already moving at warp speed, accelerated seven years into the future during the COVID-19 pandemic. As the number of bank branches continues to fall, with at least one study predicting all branches will disappear by 2034 (Fox Business) and foot traffic declining (Vox), today’s most innovative banks are charting a new, digital-first path to win over customers while increasing security, meeting KYC compliance requirements, and winning customers to drive revenue.

In this webinar, you’ll hear from John Baird, Founder & CEO of Vouched, Tyler Crawford, COO of Bankers Healthcare Group, Anand Sathiyamurthy, CPO of Flagstar Bank and Daniel Sheehan, Chairman & CEO of Professional Bank as they describe their vision for digital transformation and how customer expectations are changing to digital first. They’ll also explore how fostering an innovation mindset creates new ways to tackle complex KYC problems and allows them to quickly compete in new markets and win customers.

REGISTER NOW!

This webinar is brought to you by:
Vouched Logo