Columbus, Ohio-based Huntington Bancshares Inc. today announced it will acquire FirstMerit Corp., also based in Ohio, for $3.4 billion in stock and cash. The transaction is expected to be completed in the third quarter of 2016.
“We are very pleased to come together with FirstMerit to create a regional bank with added customer convenience, an enhanced portfolio of products for consumers and businesses, as well as strong market share,” says Steve Steinour, chairman, president, and CEO of Huntington. “I believe the strength of this deal is that both organizations already understand the needs and goals of our Midwestern customers and communities.”
Steinour says under the terms of the agreement, FirstMerit will merge with a subsidiary of Huntington Bancshares, and FirstMerit Bank will merge with and into Huntington National Bank. Four members of the FirstMerit Board of Directors will join Huntington’s board.
“Joining forces with Huntington will give us an opportunity to combine both companies’ commercial, small business, wealth, and consumer expertise while giving all of our customers greater access to services,” says Paul Greig, chairman, president, and CEO of FirstMerit. “We will also leverage our strong credit culture and continue our mutual tradition of community involvement to help our Midwest markets grow.”
Huntington has about $71 billion in assets while FirstMerit has nearly $26 billion in assets. The combined company is expected to have $100 billion in assets and operate across eight Midwestern states. Huntington will expand its operations into Chicago and Wisconsin.
Huntington, founded in 1866, has more than 750 branches in six states. FirstMerit, founded in 1845, has 366 banking offices in Ohio, Michigan, Wisconsin, Illinois, and Pennsylvania.
IN OTHER ACQUISITION NEWS, Midland-based Chemical Financial Corp. today announced it will acquire Troy-based Talmer Bancorp Inc. for $1.1 billion in cash and stock. The transaction is expected to close in the second half of 2016.
“In Talmer, we are partnering with a like-minded, growth-oriented organization, which shares a conservative lending culture built by talented and experienced professionals who seek to develop and support long-term client relationships with businesses and consumers who reside in the communities they serve,” says David Ramaker, chairman, CEO, and president of Chemical Financial. “In addition to the cultural fit, the two organizations will add talent, scale, and strong track records for acquisitive and organic growth that we believe will facilitate the combined organization’s continued growth.”
Ramaker says the combined organizations will have about $16 billion in assets. Ramaker will continue to serve as the chairman, CEO, and president of Chemical Financial, while David Provost, president, CEO, and chairman of Talmer Bank will join Chemical’s board of directors.
Talmer Bank and Trust will operate under the Chemical Bank name. Five members of Talmer’s board of directors will join Chemical’s board upon completion of the transaction.
Chemical Financial has 185 offices in nearly 50 counties across southwestern, central, and northern Michigan. Talmer operates branches and lending offices in Michigan, Ohio, Illinois, Indiana, and Nevada.