Huntington Bancshares, TCF Financial Agree To Combine In All-stock Merger

Huntington Bancshares Inc (HBAN), the parent company of The Huntington National Bank, and TCF Financial Corp (TCF), the parent company of TCF National Bank, agreed to combine in an all-stock merger with a total market value of about $22 billion with dual headquarters in Detroit, Michigan and Columbus, Ohio. The merger is expected to close in the second quarter of 2021.

Under deal terms, 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. The combination expands the Huntington footprint to include Minnesota, Colorado, Wisconsin, and South Dakota, and deepens its presence in Chicago.

Upon closing, Huntington CEO Stephen Steinour will remain the chairman, president, and CEO of the holding company and CEO and president of the bank. TCF executive chairman Gary Torgow will serve as chairman of the bank's board of directors. At closing, five current TCF Directors will be added to Board of Directors of the holding company. David Porteous will serve as Lead Director of holding company's Board of Directors and the bank's Board of Directors.

Huntington said the pro forma combined company will have approximately $168 billion in assets, $117 billion in loans, and $134 billion in deposits. The combined organization will significantly improve Huntington's market position, increase scale and provide greater revenue growth opportunities.

Huntington expects the financially compelling transaction to be 18% accretive to earnings per share in 2022, assuming the fully phased-in transaction cost synergies. Estimated cost savings of the combined company are approximately $490 million, or 37% of TCF's noninterest expense.

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.

Huntington said it will contribute $50 million to a donor-advised fund at the Community Foundation for Southeast Michigan to serve the needs of communities in Detroit and across the footprint of the combined bank. The fund will be in addition to commitments already made by both banks, including a combined $10 million to Detroit's Strategic Neighborhood Fund.

Huntington recently announced a $20 billion Community Plan, which is focused on economic inclusion through access to capital, affordable housing and home ownership, and community lending and investment. TCF also recently announced a $1 billion commitment over five years to support minority-owned and female-owned small businesses, which will be added to Huntington's commitment.

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