TD completes acquisition of federal savings bank

In a statement, the group said the bank was snapped up for US$1.4 billion

TD completes acquisition of federal savings bank

TD Bank successfully completed the acquisition of a federal savings bank owned by Scottrade Financial Services.

In a statement, the group said the Scottrade Bank was snapped up for a total cash consideration of US$1.4 billion. As a result of the acquisition, the federal savings bank will be merged with TD Bank, N.A.

TD Bank announced the said acquisition in October last year. As part of the announcement, Scottrade Bank's tangible book value was around US$1.3 billion, holding approximately US$13 billion in cash and securities, US$15 billion in sweep deposits from Scottrade, and about US$4 billion in loans and leases. TD previously estimated that it would recognise US$175 million of goodwill related to the acquisition.

Additionally, TD Ameritrade also concluded the acquisition of Scottrade Financial Services. In line with the acquisition, TD bank said it will accept sweep deposits from Scottrade clients.

The bank also noted that it already completed the previously announced acquisition of around 11 million shares from TD Ameritrade.

In the same announcement released by the TD Bank last year, the group said it intended to purchase US$400 million in new common equity from TD Ameritrade. The deal will push its stock ownership in the target firm to 41.4%.

"We are very pleased to complete this transaction, further strengthening our relationship with TD Ameritrade," TD Bank president and CEO Bharat Masrani said.

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