TD Bank Group (TSX: TD) (NYSE: TD) and First Horizon Corp. (NYSE: FHN) announced May 4, 2023, that they have entered into a mutual agreement to terminate their previously announced merger agreement, originally announced on Feb. 28, 2022.

TD informed First Horizon that TD doesn’t have a timetable for regulatory approvals to be obtained for reasons unrelated to First Horizon.

Because there is uncertainty as to when and if these regulatory approvals can be obtained, the parties mutually agreed to terminate the merger agreement. 

Under the terms of the termination agreement, TD will make a $200 million cash payment to First Horizon. The payment is in addition to the $25 million fee reimbursement due to First Horizon pursuant to the merger agreement.

The shares of First Horizon Series G Preferred Stock that TD Bank purchased will continue to reflect a conversion price of $25 per share.

Neither party will pay any other fees or have any other liabilities to each other related to the merger agreement.

"This decision provides our colleagues and shareholders with clarity. Though disappointed with the outcome, we move forward with a strong, growing franchise in the United States, servicing more than 10 million customers across our footprint," said Bharat Masrani, Group President and chief executive officer, TD Bank Group.

He added, "I want to thank First Horizon for their partnership over the last several months and wish them enormous success for the future. Above all, I want to thank our colleagues at TD Bank, America's Most Convenient Bank, for their tremendous efforts and steadfast dedication to the Bank, the millions we serve, and the communities in which we live and work."

"While today's announcement is unfortunate and unexpected, First Horizon will continue on its growth path operating from a position of strength and stability," said First Horizon Chairman, President and Chief Executive Officer Bryan Jordan.

Jordan added, "Our strong capital position, disciplined credit quality, expense control measures, and well-diversified and stable funding mix have enabled our business to navigate challenging banking industry dynamics and remain focused on executing our client-centric growth plan. We continue to develop and expand deep client relationships across all of our markets, which include some of the fastest-growing U.S. markets, while maintaining a strong, asset-sensitive balance sheet well-positioned for the current rate environment."

First Horizon Corp. had $80.7 billion in assets as of March 31, 2023. Headquartered in Memphis, Tenn., the banking subsidiary First Horizon Bank operates in 12 states across the southern U.S., including South Carolina.

The company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services.

The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group. TD had $1.9 trillion in assets on Jan. 31, 2023. TD Bank has locations in several South Carolina cities and towns.

Weak productivity growth remains one of the many headwinds to the Fed's efforts to corral inflation back to target, according to Well Fargo economists Sarah House and Michael Pugliese.

In a May 4, 2023, economics report, they write nonfarm labor productivity declined at a 2.7 percent annualized rate in Q1 and 0.9 percent over the past year.

They add unit labor costs picked up to a 6.3 percent annualized pace over the quarter, checking some of the recent optimism that wage pressures are beginning to ease in a meaningful way.

Nonfarm labor productivity declined at a 2.7 percent annualized rate in Q1 and 0.9 percent over the past year. 

The economists also say:

Timing is everything, especially when it comes to short-term measures of productivity. A near stalling of production in Q1 coincided with a pickup in hours worked, leading to nonfarm labor productivity contracting at a 2.7 percent annualized rate in Q1.

The decline in part reflects noise from the often lumpy path of both output and hiring over short intervals. Hours worked accelerated over the quarter amid the surge in Q1 hiring, while output growth slowed as businesses tapped into inventories to meet demand.

However, the drop in Q1 labor productivity also reflects the typical cyclical hangover from demand recovering faster than employment, with the eventual catch up in hiring depressing output per hour worked.

This dynamic was on full display in 2022, which matched the worst year for productivity growth (1974, with a drop of 1.7 percent) in records dating back to 1948.

The short-term trend is not looking quite as dire, with productivity on a year-over-over basis improving to a decline of "just" 0.9 percent.

However, through the ups and downs of the shutdowns, re-openings and restaffing efforts since the start of the 2020, labor productivity has grown only 1.1 percent on an annualized basis—worse than the much bemoaned 1.4 percent pace through the past economic cycle.

And:

The problem with poor productivity growth is that it means higher unit labor costs (ULCs), which can drive inflationary pressures. Unit labor cost growth rebounded to a 6.3 percent annualized pace in Q1.

Like productivity, the year-over-year pace is getting slightly less egregious, but at 5.8 percent it is still frighteningly high for a Fed aiming to get inflation back to 2 percent.

Although ULCs are more volatile than other measures of labor costs, their continued menacing pace adds to last week's Employment Cost Index in dampening the nascent optimism that wage pressures are beginning to ease in a meaningful way. Inflation's road back to 2 percent continues to look long as a result.

Furman Athletics Excels According To APR Report

Fourteen Furman sports topped the national average Academic Progress Rate (APR), and five scored perfect multi-year APRs of 1,000, according to a report issued by the National Collegiate Athletics Association (NCAA).

Furman’s five multi-year APR’s of 1,000, which included men’s basketball, men’s golf, men’s tennis, women’s cross country, and women’s track, again led all Southern Conference schools.

Four Paladin sports — women’s lacrosse (997), softball (996), men’s cross country (995), and men’s track (995) — recorded scores of 995 or better, while women’s golf (992), women’s tennis (992), women’s soccer (990), women’s basketball (985), men’s soccer (984), and football (980) all easily exceeded national average APRs for their respective sport. 

Paladin football topped all SoCon programs.

The overall national average APR is 984.

The most recent APRs are multi-year rates based on scores from the 2018-19, 2019-20, 2020-21 and 2021-22 academic years.

The APR measures eligibility, graduation and retention each semester or academic term and provides a clear picture of the academic performance for each team in every sport. All teams must meet an academic threshold of 930 to qualify for the postseason and can face penalties for continued low academic performance.

Since 2020, a portion of NCAA revenue has been distributed to members based on the academic achievement of student-athletes, including APR scores.

A full list of APRs for each team can be accessed by using the APR searchable database.

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