Huntington, TCF Financial to merge in $22B deal

Two big bank holding companies with huge name recognition throughout the Midwest — Columbus-based Huntington Bancshares and Detroit-based TCF Financial Corp. — are announcing plans for an all-stock merger valued at $22 billion.

Credit: Jan Underwood

Credit: Jan Underwood

Two big bank holding companies with huge name recognition throughout the Midwest — Columbus-based Huntington Bancshares and Detroit-based TCF Financial Corp. — are announcing plans for an all-stock merger valued at $22 billion.

Two big bank holding companies with huge name recognition throughout the Midwest — Columbus-based Huntington Bancshares and Detroit-based TCF Financial Corp. — are announcing plans for an all-stock merger valued at $22 billion.

The deal is expected to close in the second quarter, according to a press briefing given Sunday night.

The Huntington brand will survive, while the TCF name will disappear. The merger means that another Michigan-based bank will go by the wayside. Many major banks in Michigan — Chase, Comerica, PNC, Bank of America and Fifth Third — are all headquartered in other states. Flagstar Bank is based in Troy, and Ally Financial, a bank holding company, is based in Detroit.

The latest merger, though, calls for keeping two headquarters for different operations in a unique commitment to Detroit and Michigan.

Huntington Bancshares will retain its headquarters in Columbus for the holding company and consumer banking operations.

A Detroit headquarters will be used for the combined company’s commercial banking arm. The bankers said 60% of business enterprise will be based in Detroit, while 40% of enterprise will be in Columbus.

At least 800 employees of the combined company, nearly three times the number TCF had planned, will be housed in the downtown structure, according to the plans.

The major banking news comes nearly two years after TCF Financial, which had been based in Wayzata, Minn., and the Michigan-based Chemical Bank announced a $3.6 billion deal. Chemical Bank had a long history in Midland but moved its headquarters to Detroit in July 2018. That merger created the nation’s 27th largest bank and the largest such institution headquartered in Detroit.

The Huntington-TCF deal, which is subject to approval by shareholders and regulators, would create a regional bank that would rank No. 11 in the country. The combined company will have approximately $168 billion in assets and $117 billion in loans.

While Huntington’s branches are easily spotted across Michigan —Huntington had 281 branches in Michigan as of early September — TCF has its name on the state’s largest convention center. TCF also announced plans to build an impressive, 20-story office tower in downtown Detroit.

The questions raised in Michigan involve as much about what’s likely to happen to various bank branches, as well as what’s next for Detroit’s major landmarks and development.

In September, Huntington announced a $5-billion, five-year commitment to give Michigan’s economy a much-needed boost to help small businesses, minority-owned businesses, homeowners and others.

TCF also recently announced a $1 billion commitment over five years to support minority-owned and women-owned small businesses, which will be added to Huntington’s commitment.

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