The combined business will have around $168bn in assets and is expected to be among the top 10 US regional banks
US-based Huntington Bancshares and TCF Financial have agreed to merge in an all-stock deal to create a combined bank holding company with a total market value of around $22bn.
The combined business is expected to become a top 10 regional bank in the US with dual headquarters in Detroit, Michigan and Columbus, Ohio. It will hold nearly $168bn in assets, while having $117bn in loans, and deposits of $134bn.
Based in Ohio, Huntington Bancshares is the parent company of The Huntington National Bank. The bank, which has $120bn of assets, has 839 full-service branches and 1,330 ATMs in seven Midwestern states.
TCF Financial, which is based in Michigan, is the parent company of TCF National Bank. It operates nearly 475 branches located mainly in Michigan, Illinois, and Minnesota with additional locations across the states of Colorado, South Dakota, Ohio, and Wisconsin.
Huntington Bancshares chairman, president, and CEO Stephen Steinour said: “This merger combines the best of both companies and provides the scale and resources to drive increased long-term shareholder value. Huntington is focused on accelerating digital investments to further enhance our award-winning people-first, digitally powered customer experience.
“We look forward to welcoming the TCF Team Members. Together we will have a stronger company better able to support our customers and drive economic growth in the communities we serve.”
As per the terms of the deal, TCF Financial and TCF National Bank will merge into Huntington Bancshares and Huntington National Bank, respectively.
Stephen Steinour will continue in his present role for the enlarged bank holding company, and also as the CEO and president of Huntington National Bank.
TCF Financial board of directors executive chairman Gary Torgow said: “This partnership will provide us the opportunity for deeper investments in our communities, more jobs in Detroit, an increased commitment in Minneapolis and a better experience for our customers.
“We will be a top regional bank, with the scale to compete and the passion to serve. Merging with the Huntington platform will be a great benefit to all of our stakeholders and will drive significant opportunities for our team members.”
The deal, which is subject to customary regulatory approvals, shareholders’ approvals of both the firms, and other customary closing conditions, is expected to close in Q2 2021.