Chemical Financial Corp. in Detroit today announced it has entered into an all-stock merger of equals transaction with TCF Financial Corp. in Minnesota. TCF will merge into Chemical, and the combined holding company and bank will operate under the TCF name and brand. Details of the transaction were not disclosed.
“We are confident that this merger will enhance our ability to deliver stronger and more sustainable growth and greater value creation than either company could achieve alone,” says Craig Dahl, president, chairman, and CEO of TCF. “The new TCF will have attractive positions in both its product suite and market footprint as well as a more diversified loan portfolio and increased lending capabilities across asset classes, geographies, and industry verticals.”
The combined company will have about $45 billion in assets, $34 billion in total deposits, and more than 500 branches across nine states. Chemical has strengths in community banking and wealth management capabilities, while TCF has expertise in wholesale lending on a national basis.
“With a shared strategic vision and increased scale and capabilities, our two complementary banking platforms will be positioned to better serve our customers and communities,” says Gary Torgow, chairman of Chemical Bank. “The combination of TCF and Chemical creates the largest midcap bank in the Midwest, poised to deliver double-digit EPS accretion for each set of shareholders, significant cost synergies, top-tier return metrics, a more diversified balance sheet, and a lower risk profile. We also share a deep commitment to supporting and giving back to the communities we serve.”
The new bank is expected to be headquartered in Detroit. Chemical Financial Corp. announced it moved its headquarters to the 333 W. Fort Building in downtown Detroit in July 2018. Chemical is building a 20-story office building at the southwest corner of Woodward Avenue and Elizabeth Street and will move in upon completion in the next two to three years. It had been headquartered in Midland since its founding 1917.
“Given where Detroit and Wayne County were financially just a few years ago, this news says a lot about where we are today,” says Wayne County Executive Warren C. Evans. “This merger will allow the region to be a player in the financial industry in a way it hasn’t in quite some time. It will translate to more jobs and is further affirmation that Wayne County’s 43 communities, including the city of Detroit, are on the rise in a significant way. I’d like to thank Gary Torgow for his leadership and his enduring belief in Wayne County.”