TCF Financial Corp., Detroit, holding company for TCF National Bank, exited the Arizona market when it sold seven branches in Phoenix to Alaska USA Federal Credit Union, one of the largest credit unions in the nation.
“The sale of these banking centers allows us to prioritize our efforts and resources on cour markets where we have greater scale,” said Michael Jones, executive vice president of regional banking at TCF Bank. “We see tremendous opportunity to centralize our strong brand and full-service product offering throughout our markets in Michigan, Minnesota, Illinois, Colorado, South Dakota, Ohio and Wisconsin.”
The credit union will acquire the branches’ deposits and certain related assets, and will extend employment offers to all TCF Bank team members who worked at the seven branches. After the merger completes, Alaska USA will operate 15 branches in the Phoenix market and employ more than 300 people in the state.
As one of the 20 largest credit unions in the country, Alaska USA has more than $8.3 billion in assets and more than 673,000 members in Alaska, Arizona, California and Washington.
“We are pleased to have found a buyer in Alaska USA that is equally recognized for its outstanding commitment to its credit union members and its employees, and we look forward to working together to provide a smooth transition for our customers and our team members,” Jones said.
Financial terms of the agreement were not disclosed, and the transaction is expected to close in the second quarter of 2020, subject to customary closing conditions and regulatory approval.
Piper Sandler is acting as financial advisor and Dorsey & Whitney, LLP is acting as legal counsel to Alaska USA. Davidson companies is acting as financial advisor and Vantage Law Group, PLLC is acting as special real estate legal counsel to the $46 billion TCF Bank.
TCF recently merged with Detroit-based Chemical Bank, and TCF President/CEO Craig Dahl offered insights into the process.