Huntington to Merge with TCF Bank in $22B Deal
COLUMBUS, Ohio – Huntingon Bancshares Inc, the parent company of Huntington Bank, is merging with TCF Financial Corp. in a $22 billion deal that will create one of the largest regional banks in the country.
As a result of the all-stock merger, expected to close in the second quarter of 2021, all TCF Bank branches and ATMs will be rebranded as Huntington locations. The combined entity will have dual headquarters in Columbus – where Huntington has its headquarters – and Detroit, home to TCF.
“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,” said Huntington President and CEO Stephen Steinour in a statement. “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.”
Upon closing, Steinour will remain the chairman, president, and
CEO of the holding company and CEO and president of the bank.
The pro forma company will have roughly $168 billion in assets, $117 billion in loans and $134 billion in deposits. Estimated cost savings of the combined company are approximately $490 million, or 37% of TCF’s noninterest expense.
The headquarters for the commercial bank will be in Detroit where at least 800 employees of the combined company, nearly three times the number TCF had planned, will be housed in its downtown structure. Columbus will remain the headquarters for the holding company and the consumer bank.
During the Paycheck Protection Program, the two banks were leaders in the local five-county area. Huntington provided 1,490 loans totaling $216.38 million – No. 1 in the area – while TCF provided 319 loans worth $35.37 million.
The combination expands the Huntington footprint to include Minnesota,
Colorado, Wisconsin, and South Dakota, and deepens its presence in Chicago.
“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,” said Torgow, who will serve as chairman of the combined banks’ board of directors. “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.”
Copyright 2021 The Business Journal, Youngstown, Ohio.