Benzinga | Dec 14, 2020 04:48AM EST

Huntington Bancshares To Merge With TCF Financial, Creating A $22B Entity

Huntington Bancshares Inc (NASDAQ:HBAN) and TCF Financial Corporation (NASDAQ:TCF) announced late Sunday the two banks have agreed to merge in an all-stock deal.

What Happened: The combined company will have a market valuation of $22 billion and continue to operate under the Huntington name and brand once the deal is closed.

Huntington Chairman Stephen Steinour will continue to serve as the chairman, president, and CEO of the combined company while TCF Financial Chairman Gary Torgow will serve as chairman of the bank's board of directors.

"This merger combines the best of both companies and provides the scale and resources to drive increased longterm shareholder value," Steinour said in a statement. "Together we will have a stronger company better able to support our customers and drive economic growth in the communities we serve."

Steinour, also a director at L Brands, Inc (NYSE:LB), was awarded the 2020 Outstanding Leadership Award on Oct. 18 during a virtual event by the Yeshiva Beth Yehudah -- a 105-year old Jewish educational institution based in Michigan.

The Wall Street Journal had reported on the advanced merger discussions earlier on Sunday.

Why It Matters: Post-merger, the combined entity would have $168 billion in assets and a geographic span ranging from Pennsylvania to Arizona with a strong presence in the Midwest, particularly Illinois and Michigan, the Journal noted earlier.

The merger would reportedly also propel Huntington close to its rivals Fifth Third Bancorp (NASDAQ:FITB) and KeyCorp (NYSE:KEY), which have about $200 billion and $170 billion in assets, respectively.

The combined company will have headquarters in both Detroit and Columbus.

Regional banks have been consolidating to bolster themselves against competition posed by banking giants such as JPMorgan Chase & Co (NYSE:JPM) and Bank of America Corp (NYSE:BAC), the Journal noted.

In October, First Citizens BancShares Inc (NASDAQ:FCNCA) and CIT Group Inc (NYSE:CIT) had announced a merger. The following month, PNC Financial Services Group Inc (NYSE:PNC) said it was buying the Spanish bank Banco Bilbao Vizcaya Argentaria SA's (NYSE:BBVA) U.S. business.

Price Action: Huntington shares closed nearly 0.8% lower at $12.93 on Friday and fell 0.23% in the after-hours session. On the same day, TCF Financial's shares closed 2.5% lower at $34.78.

See Also: BB&T, SunTrust Announce Merger To Create Sixth-Largest US Bank

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