Name: Huntington Bancshares Agrees to Merge With TCF Financial
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Huntington Bancshares Agrees to Merge With TCF Financial

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ByandHuntington Bancshares Inc. agreed to merge with TCF Financial Corp. in the latest in a recent string of regional-bank tie-ups. The companies on Sunday announced an all-stock deal, confirming an earlier report by The Wall Street Journal. It would be one of the larger recent bank combinations, valuing Detroit-based TCF at nearly $6 billion, or about an 11% premium. Columbus, Ohio-based Huntington has a market value of $13 billion. Together,...agreed to merge within the latest in a recent string of regional-bank tie-ups.The companies on Sunday announced an all-stock deal, confirming an earlier report by The Wall Street Journal. It would be one of the larger recent bank combinations, valuing Detroit-based TCF at nearly $6 billion, or about an 11% premium. Columbus, Ohio-based Huntington has a market value of $13 billion.Together, the banks would have about $170 billion in assets, with a network of branches around the country that is especially concentrated in Midwestern states such as Illinois and Michigan.The deal, if completed, would vault Huntington closer to its fiercest in-state competitors,and, which have about $200 billion and $170 billion in assets, respectively.TCF’s network would add about 475 new branches, including in a handful of states where Huntington lacks a physical presence. Huntington’s 839 branches are spread across seven states.The combined company will have two headquarters——one for its larger commercial segment in Detroit, and one for its consumer business in Columbus, Huntington Chief ExecutiveSteve Steinoursaid. He will remain CEO while TFC’s executive chairman,Gary Torgow,will remain chairman. Talks between the men, who have known each other for decades, began in October and progressed quickly, Mr. Steinour said.Huntington has a reputation as an acquisition hound. It bought fellow Ohio bank FirstMerit Corp. in 2016 in a deal that . TCF is no stranger to deal making either.The merger comes less than two years after it with Chemical Financial Corp. that roughly doubled its size.Bank deals have picked up pace this year, especially among regional banks that have been seeking scale to better compete with larger competitors such as&amp; Co. andWith larger budgets to develop flashy apps and support a wide network of branches, big national banks have been adding customers and expanding into regions that were once dominated by regional banks. Consolidating allows banks to eliminate overlapping costs for things like regulatory compliance and digital investment that often weigh on earnings.Low interest rates are particularly tough on regional banks, which rely more on lending profits than their larger counterparts. Net interest margin, or the difference between what a bank pays its depositors and earns from lending, hit a record low for commercial banks in the third quarter.agreed to buyin October in a . In November,agreed of Spain’sfor $11.6 billion, a combination that would create the fifth-largest U.S. retail bank, with more than $550 billion in assets.Two larger regional banks,and SunTrust, merged last year to become Truist Financial Corp., the ushered in stricter regulations.“This merger is an ideal opportunity; it bolsters both of us,” Mr. Steinour said in an interview. “We’ll be able to do things together that neither of us could do independently.”was financial adviser to Huntington and Wachtell, Lipton, Rosen &amp; Katz was legal adviser. Keefe, Bruyette &amp; Woods was financial adviser to TCF while Simpson Thacher &amp; Bartlett LLP was legal adviser.Write to Cara Lombardo at and Orla McCaffrey atBack to TopTHANKS FOR READINGThe Wall Street JournalContinue Reading Your Article With a WSJ Membership{{{message}}}Cookie NoticeWe use cookies for analytics, advertising and to improve our site.You agree to our use of cookies by closing this message box or continuing to use our site.To find out more, including how to change your settings, see our

ByandHuntington Bancshares Inc. agreed to merge with TCF Financial Corp. in the latest in a recent string of regional-bank tie-ups. The companies on Sunday announced an all-stock deal, confirming an earlier report by The Wall Street Journal. It would be one of the larger recent bank combinations, valuing Detroit-based TCF at nearly $6 billion, or about an 11% premium. Columbus, Ohio-based Huntington has a market value of $13 billion. Together,...agreed to merge within the latest in a recent string of regional-bank tie-ups.The companies on Sunday announced an all-stock deal, confirming an...

Huntington Bancshares Agrees to Merge With TCF Financial

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