First Tennessee to buy 13 Bank of America branches in Tennessee

First Tennessee to buy 13 Bank of America branches in Tennessee

May 29th, 2014 by Staff Report in Business Around the Region

The First Tennessee Bank building is located between Market and Broad Streets in downtown Chattanooga.

The First Tennessee Bank building is located between...

Photo by John Rawlston /Times Free Press.

First Tennessee Bank will buy 13 branches and four remote automatic teller machines from Bank of America in Middle and East Tennessee.

First Horizon Corp., the parent company of First Tennessee, announced Wednesday that it will acquire the BofA offices in Waverly, Columbia, Lawrenceburg, Lewisburg, Sparta, Rockwood, Greeneville, Kingston, Bristol, Johnson City and Kingsport. Collectively, the purchase will add $660 million in deposits at a deposit premium of 3.32 percent.

First Tennessee had the largest market share by deposits in Tennessee as of June 2013, with $16.6 billion in deposits at 170 offices across Tennessee, including more than $2 billion in deposits at 21 offices in metropolitan Chattanooga.

Some of the communities to be served by the acquired branches will be new for First Tennessee. The Memphis-based bank said it will hire all current branch employees when the purchase closes and take other steps to ensure smooth continuity of service for customers and these communities.

In addition to the branches, First Tennessee will also acquire a small amount of loans as part of the transaction.

Founded in 1864, First Tennessee is the country's 14th oldest national bank.

"We are proud to have earned the trust and business of the people of Tennessee for 150 years, and we look forward to continuing that tradition in communities that are both new and familiar to us with this purchase," said Bryan Jordan, chairman and CEO of First Horizon Corp.