Huntington Bancshares and TCF Financial Corp. have announced that each company’s shareholders have approved the proposed merger of TCF into Huntington. The companies will have dual headquarters in Huntington’s Columbus, Ohio, and TCF’s Detroit. Terms of the $22 billion deal, which was announced in December, were not disclosed.
“With our shareholders’ approval, we are one step closer to bringing together our two purpose-driven organizations to create an even stronger, market-leading regional bank for our customers, communities, and colleagues,” says Gary Torgow, executive chairman of TCF.
The completion of the transaction remains subject to regulatory approval and the satisfaction of other customary closing conditions set forth in the merger agreement. The companies anticipate completing the transaction late in the second quarter.
“Shareholder approval is a key milestone in our journey to combine Huntington and TCF,” says Stephen D. Steinour, chairman, president, and CEO of Huntington. “I am very pleased Huntington shareholders support this partnership, as it provides a compelling opportunity to accelerate shareholder value creation while enabling us to help more people and businesses throughout our local communities. I look forward to TCF shareholders becoming Huntington shareholders when the transaction is complete.”
In December, the companies signed a definitive agreement under which TCF would combine in an all-stock merger with a total market value of about $22 billion with Huntington.
The merger will create a top 10 U.S. regional bank. The combined holding company will operate under the Huntington name and brand.
Upon closing, Steinour will remain chairman, president, and CEO of the holding company as well as CEO and president of the bank. Torgow will serve as chairman of the combined bank’s board.
The pro forma combined company will have about $168 billion in assets, $117 billion in loans, and $134 billion in deposits. Huntington expects the transaction to be 18 percent accretive to earnings per share in 2022. Estimated cost savings of the combined company are about $490 million, or 37 percent of TCF’s noninterest expense.
Through the combination, Huntington will expand its footprint to include Minnesota, Colorado, Wisconsin, and South Dakota. The deal also deepens the organization’s presence in Chicago.
In August, TCF completed an integration with Chemical Bank under which Chemical Bank changed its branding to TCF. It had announcing the merger in January 2019. In July 2018, Chemical Bank moved its headquarters to downtown Detroit and announced plans to build a 20-story office building in downtown Detroit. TCF is continuing the project.