ess than two years after acquiring Chemical Bank, TCF Financial Corp. will now merge with Huntington Bancshares Inc., the parent company of The Huntington National Bank, to create one of the top 10 regional banks in the United States with dual headquarters in Detroit and Columbus, Ohio.
Earlier this week, the two companies announced the signing of an agreement under which the companies will combine in an all-stock merger with a total market value of approximately $22 billion.
Under the terms of the agreement, which was unanimously approved by the boards of directors of both companies, TCF will merge into Huntington, and the combined holding company and bank will operate under the Huntington name and brand following the closing of the transaction, which is expected in the second quarter of 2021, according to a news release issued by Huntington on Sunday.
TCF currently operates two banks in South Haven, its downtown branch and its suburban branch at the corner of Blue Star and M-43 highways, while Huntington has a branch location in Meijer. Whether any of the branches will be combined after the merger occurs remains to be seen, however, the TCF website stated the following: “We are in the process of reviewing both Huntington and TCF’s branch networks to determine a combined network that offers continued excellent customer service. Some banking centers will close, like those where there’s another Huntington or TCF bank close by. For now, keep banking as you normally do. You will receive prior notice of any changes to your banking center.”
In the meantime, TCF Bank will continue to operate separately until all regulatory and shareholder approvals are received and the companies are merged, the company indicated to customers on its website.
“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,” Stephen D. Steinour, president and CEO of Huntington said. “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.”
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 the downtown structure. Columbus will remain the headquarters for the holding company and the Consumer Bank.
“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 Gary Torgow, who will serve as chairman of the bank’s 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.”
The pro forma combined company will have approximately $168 billion in assets, $117 billion in loans, and $134 billion in deposits.
As part of the merger Huntington will fund a $50 million donor-advised fund at the Community Foundation for Southeast Michigan to serve the needs of communities in Detroit and across the footprint of the combined bank.