Huntington to acquire TCF

Huntington Bancshares, Columbus, Ohio, has agreed to acquire TCF Financial, Detroit, in a deal with a market value of about $22 billion.

In a $6 billion all-stock merger, the combined companies will be among the top 10 U.S. regional banks with dual headquarters in Detroit and Columbus. The bank will operate under the Huntington name and brand upon closing the transaction, which is expected to be in the second quarter of 2021.

The holding company and the consumer bank’s headquarters will be in Columbus. The headquarters for the commercial bank will be in Detroit, where the combined companies’ 800 employees will be based. Gary Torgow, the previous chair of TCF, will be the chair of the bank’s board of directors. 

“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,” Torgow said. “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 terms and conditions of the deal were unanimously approved by the boards of both companies. The combined company will have roughly $168 billion in assets, $117 billion in loans, and $134 billion in deposits. Huntington expects the transaction to be 18 percent accretive to earnings per share in 2022, given fully phased-in transaction cost synergies. 

“Huntington is focused on accelerating digital investments,” said Stephen Steinour, who will remain the chair, president and CEO of the holding company, and CEO and president of the bank. “This merger combines the best of both companies and provides the scale and resources to drive increased long-term shareholder value.”

Goldman Sachs & Co. LLC is serving as financial advisor to Huntington. Wachtell, Lipton, Rosen & Katz is serving as legal advisor to Huntington. Keefe, Bruyette & Woods, a Stifel Company, is serving as financial advisor to TCF. Simpson Thacher & Bartlett LLP is serving as legal advisor to TCF.

TCF, formerly Chemical Financial, completed its acquisition of Minnesota-based TCF Financial in August 2019. Former TCF President/CEO Craig Dahl, who helped shepherd the deal to completion, retired this fall.