The proposed $3.6 billion merger between Chemical Financial Corp. and TCF Financial Corp. would create a Midwest bank based in Michigan that’s able to compete with the largest national banks and that’s likely to pursue further acquisitions. Under the $3.6 billion all-stock deal, the Wayzata, Minn.-based TCF Financial (NYSE: TCF) would merge into the Detroit-based Chemical Financial (Nasdaq: CHFC). Once the deal closes, Chemical Bank locations would take on the TCF name.
Seeking to drive growth and reach further into middle market companies across the Midwest, Chemical Bank has steadily added to its roster of commercial bankers since last summer and developed lending specialties.
Chemical Financial Corp. has completed a restructuring that was designed to drive $20 million in annualized cost savings and put more focus on commercial lending.
John Donnelly considers Independent Bank Corp.’s proposed $63.1 million deal to buy Traverse City-based TCSB Bancorp Inc. as indicative of the bank mergers likely to occur in Michigan next year.
The active mergers and acquisitions market shows no signs of slowing down for the foreseeable future.
In his 28 years in practice, attorney Jeff Ott has worked on almost 70 transactions, nearly a dozen of which involved Chemical Financial Corp.’s acquisitions of other banks.
Nearing $10 billion in assets after a series of smaller community bank acquisitions, Chemical Financial Corp. last year needed to pursue a deal larger than any it had contemplated before.
Chemical Financial Corp. plans to close and consolidate 25 more branches by the end of the year and trim its workforce 7 percent in a cost-cutting initiative that will generate $20 million in annualized savings.