logo
Share SHARE
FONT-SIZE Plus   Neg

Huntington Bancshares Buys Fidelity Bank In Southeastern Michigan

Huntington Bancshares Inc. (HBAN) announced that it has purchased Fidelity Bank from the Federal Deposit Insurance Corporation or FDIC. Fidelity Bank was closed earlier this evening by the Michigan Office of Financial and Insurance Regulation, which appointed the Federal Deposit Insurance Corporation or FDIC as the receiver.

Subsequently, the FDIC sold the 15-branch bank to Huntington. Effective Saturday, March 31, 2012, all of Fidelity Bank branches will open as Huntington branches. Huntington currently has 50 banking offices in Southeast Michigan, more than 115 in Michigan and more than 600 branches throughout the Midwest.

As of March 9, 2012, Fidelity Bank had approximately $0.8 billion in assets and $0.7 billion of deposits.

Huntington said that it has completed due diligence on more than half of the loan portfolio, resulting in an acquisition asset discount of approximately $150 million.

In 2012, the transaction is expected to be over 2% accretive to earnings per share, less than 1% accretive to tangible book value, and very modestly dilutive to Huntington's capital ratios.

The company said that starting Saturday, the former Fidelity Bank customers will continue to conduct banking business at their existing banking offices with familiar employees. Then beginning on April 13, 2012, customers will have access to Huntington's entire 1,300 ATM network throughout the Midwest, with no service charge, including the 52 ATMs in East Michigan. Then in late June, their existing accounts will be converted to Huntington's systems.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Facebook (FB) announced Thursday it has agreed to release advertisements purchased by Russians in an effort to influence last year's election to congressional investigators. Calling North Korean nuclear weapons and missile development a grave threat to global peace and security, President Donald Trump announced Thursday he has signed an executive order seeking to crack down on trade with the reclusive communist nation. Come weekends and the ride sharing company Lyft in association with the beer brand Budweiser will offer free travel for short distances. The program is aimed at discouraging drunk driving on holidays. The offer of 150,000 free trips will be available in 10 states, all through the year.
comments powered by Disqus
Follow RTT