A third merger involving Midlands bank companies has been announced.
On Thursday, Charlotte-based Capital Bank Financial Corp., which operates five branches in the Midlands, said it will merge with First Horizon National Corp. to create the fourth largest regional bank in the Southeast.
Just last week, Columbia-based South State Corp. announced plans to acquire Park Sterling of Charlotte and on April 12 Lexington-based First Community said it was merging with a bank in the Upstate.
The First Horizon-Capital Bank will lead to the creation of a company with $40 billion in assets, $32 billion in deposits, $27 billion in loans and more than 300 branches in Tennessee, North Carolina, South Carolina, Florida, Mississippi, Georgia, Texas and Virginia, according to a press release. First Horizon, headquartered in Memphis, Tenn., will retain its First Tennessee bank brand in the Volunteer State where it has a 153-year history. Branches outside Tennessee will use the Capital Bank name.
Charlotte-based Capital Bank, which acquired Spartanburg-based First National Bank of the South in 2010, has 11 branches in South Carolina, according to the Federal Deposit Insurance Corp. records. On June 30, Capital Bank operations in the Palmetto State had about $370.7 million in deposits and 0.47% share of the market.
"This is an exciting time for First Horizon," said Bryan Jordan, chairman and CEO of First Horizon. "Together with the accomplished team at Capital Bank we will be able to leverage the strengths of both banks and capitalize on growth opportunities in attractive, high-growth Southeast markets and enhance our strong presence in our Tennessee markets.”
The agreement calls for two members of Capital Bank's board of directors to join the First Horizon board, including Gene Taylor, Capital Bank chairman and CEO, who will become vice chairman of First Horizon.
"The merger with First Horizon will allow us to sustain the success Capital Bank has achieved and create new opportunities for growth,” Taylor said. “The strategic fit between the two organizations is compelling, especially for our valued customers who will benefit from the enhanced balance sheet strength and broader array of products and services offered by a $40 billion Southeastern bank.”
On April 27, South State Corp. and Park Sterling Corp. announced plans to combine the two companies creating a franchise with $14.5 billion in assets with operations throughout South Carolina, North Carolina, Virginia and Georgia.
Two weeks earlier, Lexington-based First Community Corp. and Cornerstone Bancorp, headquartered in Easley, announced an agreement where First Community will acquire Cornerstone for approximately $25.8 million in cash and stock.