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VOL. 132 | NO. 239 | Monday, December 4, 2017

First Horizon-Capital Bank Merger Now Complete

By Andy Meek

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The parent company of First Tennessee Bank will end 2017 as a significantly larger institution, with billions more in assets, deposits and loans, thanks to the completion Nov. 30 of its merger with Charlotte, North Carolina-based Capital Bank Financial Corp.

The $2.2 billion deal between Capital Bank and Memphis-based First Horizon National Corp. is the largest such merger in First Horizon’s history. As of the last day of November, Capital Bank Financial merged into First Horizon, and its banking subsidiary Capital Bank Corp. merged into First Tennessee Bank National Association, creating the fourth largest regional bank in the Southeast.

The deal gives the combined institution about $40 billion in assets, $32 billion in deposits, $27 billion in loans and 350 branches in Tennessee, North and South Carolina, Florida, Mississippi, Georgia, Texas and Virginia.

First Horizon chairman and CEO Bryan Jordan said the merger creates “an even stronger regional bank that offers differentiated customer service and enhances our presence throughout our markets.”

(Daily News File / Andrew J. Breig)

Both institutions will still retain their distinct identifies for branding purposes – First Horizon will keep the First Tennessee Bank brand in Tennessee, while branches outside the Tennessee market will keep their Capital Bank name.

Two Capital Bank board members – Peter Foss and Capital Bank chairman and CEO Gene Taylor – have also joined the First Horizon board, and Taylor became vice chairman of First Horizon.

“We’re excited about this opportunity to be a part of the region’s most respected family of financial institutions with a history of exemplary customer service,” Taylor said about the completion of the merger. “There’s no doubt that the strength and talent of these combined organizations propels us forward and enhances our capacity to deliver sophisticated, high-touch financial service.”

The merger became official a month to the day after the Federal Reserve gave its approval to the deal, with the Federal Reserve board giving its OK in a 4-0 vote.

Both banks jointly agreed to divest two branches on the road to closing the deal. The parent company of both banks agreed to sell two Capital Bank branches in East Tennessee to Apex Bank. Tennessee-based Apex is absorbing deposits worth about $34 million and $2.5 million in loans from the two branches. And Apex will retain all existing branch employees after acquiring the branches.

The Capital Bank deal marks a significant new chapter for First Tennessee’s parent company, which announced the deal back in May. On the morning of May 4 – with Capital Bank’s Taylor on hand at First Horizon’s Downtown Memphis headquarters – First Horizon employees opened a company-wide email that began: “This morning we are announcing the largest merger in our history.”

That email went on to tout benefits of the deal, including bringing “a significant number of new customers” into the First Tennessee orbit.

The deal caps a busy year for the Memphis-based financial services institution, the stock of which has been trading near its 52-week high lately. Among its most recent results, the company reported a 7 percent increase in net income in the third quarter – from $63.2 million to $67.3 million year-over-year.

PROPERTY SALES 57 280 1,209
MORTGAGES 55 244 916
BUILDING PERMITS 158 699 2,751