Huntington Bancshares Inc. and Detroit-based TCF Financial Corp., two of the largest banks operating in West Michigan, plan to merge in a $22 billion deal that would create a Midwestern banking powerhouse.
The Columbus, Ohio-based Huntington (Nasdaq: HBAN) and TCF Financial (Nasdaq: TCF) said Sunday night that they signed a definitive merger agreement for an all-stock transaction that could close in the second quarter of 2021, pending shareholder and regulatory approvals.
The combined bank, with TCF merging into Huntington, would have about $168 billion in assets, $117 billion in loans, and $134 billion in deposits with dual headquarters in Detroit and Columbus. Operating under the Huntington name, the bank would become a top 10 regional bank in the U.S.
“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, TCF’s executive chairman. “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.”
Under terms of the merger, Torgow will become chairman of the combined bank’s board of directors. Huntington Chairman, President and CEO Stephen Steinour will hold the same positions at the merged bank’s holding company, as well as president and CEO of the bank.
“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,” Steinour said. “Together we will have a stronger company better able to support our customers and drive economic growth in the communities we serve.”
Both TCF and Huntington rank among the largest banks in the West Michigan market and statewide for deposits.
Huntington Bank ranked as the second-largest bank in the Grand Rapids area, which has $27.34 billion in deposits. The bank with 42 offices had $3.07 billion in deposits as of June 30, or an 11.26 percent market share, according to the 2020 FDIC Summary of Deposits.
TCF ranked fourth in the Grand Rapids area with 28 offices, $2.31 billion in deposits, or a 8.45 percent market share.
Across the entire state, TCF ranked sixth in the 2020 Summary of Deposits. As of June 30, the bank had 243 offices with $20.07 billion in deposits, or a 7.06 percent market share of the statewide deposits, which total $284.30 billion. Huntington was seventh with 289 offices and $19.67 billion in deposits, or a 6.92 percent market share.
TCF, formerly based in Minneapolis, Minn., most recently merged with the former Chemical Financial Corp. in a $3.6 billion deal that closed in August 2019. Chemical Bank offices in Michigan took in the TCF name this past August.
Goldman Sachs & Co. LLC serves as financial adviser to Huntington and Wachtell, Lipton, Rosen & Katz is serving as legal adviser. Keefe, Bruyette & Woods Inc., a Stifel Company, serves as financial adviser to TCF, which was advised by the law firm of Simpson, Thacher & Bartlett LLP.