Carolina First Bank is letting its customers know about its impending takeover by TD Bank through a Merger Q&A. The deal comes as part of TD Bank’s acquisition of South Financial, first announced in May. The merger should be finalized later this year.
South Financial struggled mightily during the financial crisis, taking more than $1 billion in losses since the start of 2008. That led TD Bank to make the purchase for $61 million, not a huge number for the 1,000-location, $1.52-billion giant.
At the time of the acquisition, TD Bank CEO Ed Clark said, “This is a relatively small acquisition and exactly the kind of unassisted transaction that we’ve said we’re comfortable doing. All in all, we think we’re getting a strong franchise that offers a solid financial return.”
South Financial ran 176 bank locations, 66 of which were in Florida. The purchase expanded TD’s footprint substantially in the U.S. Southeast. Other banks affected by the merger were smaller institutions Carolina First Bank and Mercantile Bank.
Impact on Carolina First Members
The merger will mean “business as usual” for Carolina First members, according to the Q&A. Customers will be able to bank like they always have with Carolina First.
One positive effect of the deal for consumers is the addition of more than 1,000 bank locations to their network. That means they can skip out on ATM fees on the TD network when traveling along the Atlantic coast between Florida and Maine.