COLUMBUS, Ohio — Huntington Bancshares Incorporated, the parent company of The Huntington National Bank, and TCF Financial Corporation, the parent company of TCF National Bank, announced the signing of a definitive agreement under which the companies will combine in an all-stock merger with a total market value of approximately $22 billion.
The merger will create a top 10 U.S. regional bank with dual headquarters in Detroit, Michigan, and Columbus, Ohio, according to a joint press release from the banks.
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.
Upon closing, Stephen Steinour will remain the chairman, president, and CEO of the holding company and CEO and president of the bank. Gary Torgow will serve as chairman of the bank’s board of directors.
“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 in a press release. “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,” Torgow said in the release. “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, according to the release
Huntington expects the transaction to be 18% accretive to earnings per share in 2022, assuming the fully phased-in transaction cost synergies, the release said.