(Bloomberg) -- Toronto-Dominion Bank said it will repurchase 30 million shares after the collapse of its $13.4 billion deal for First Horizon Corp. left it with a bevy of surplus capital.

The buyback program will represent 1.6% of the firm’s outstanding shares, according to a statement from Toronto-Dominion, which had previously been hoarding capital in anticipation of completing the deal. Still, abandoning the deal also forced the Toronto-based bank to say that it doesn’t expect to meet its medium-term adjusted earnings guidance of growing 7% to 10%, according to a separate statement Thursday announcing fiscal second-quarter results.

“We’re happy with the capital position that we’re in. It provides us with a lot of flexibility, so we’re happy to return some of that capital back to shareholders,” Toronto-Dominion Chief Financial Officer Kelvin Vi Luan Tran said in an interview.

Toronto-Dominion shocked markets when it abandoned the acquisition, which would have been its largest deal ever, adding 400 bank branches in the US Southeast. The purchase was held up as US regulators scrutinized the lender’s handling of customers’ suspicious transactions.

Toronto-Dominion saw revenue surge more than analysts expected in its fiscal second quarter as net interest income was aided by rate hikes in both the US and Canada. Revenue rose 9.8% to C$12.4 billion ($9.1 billion), including a 16% jump in net interest income.

Provisions for souring loans soared to C$599 million, up from just C$27 million a year earlier. That was lower than the C$708.9 million that analysts in a Bloomberg survey were anticipating.

Net income slipped 12% to C$3.35 billion, or C$1.72 a share. Earnings excluding some items totaled C$1.94 a share, less than the C$2.08 average of analysts’ estimates.

Toronto-Dominion shares slipped 2.4% to C$79.21 at 9:42 a.m. in Toronto. They’ve slumped 9.7% this year, more than the 4.4% drop in the S&P/TSX Commercial Banks Index.

(Updates with CFO comment in third paragraph, shares in last.)

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