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The merger deal of Huntington Bancshares Incorporated (HBAN - Free Report) and TCF Financial Corporation has been approved by the Federal Reserve and the Office of the Comptroller of the Currency, with input from the United States Department of Justice's Antitrust Division ("DOJ").
Shares of Huntington and TCF have gained 2.9% and 3.5%, respectively, since the announcement.
The deal received shareholders’ approval in March 2021 and is now set to close on or around Jun 9, 2021, subject to the satisfaction or waiver of the remaining customary closing conditions.
Along with this, the companies announced that TCF National Bank has signed a purchase and assumption agreement to divest 14 banking centers in Michigan to Horizon Bancorp, Inc. (HBNC - Free Report) . This move is in connection to the proposed merger.
The branches, with about $975 million worth deposits and $275 million in total loans, are being divested in satisfaction of commitments to the DOJ and the Federal Reserve Board in connection with Huntington's proposed acquisition of TCF.
The branch sale is expected to close by the third quarter of 2021, subject to regulatory approval and other customary closing conditions, which includes completion of the merger of Huntington and TCF.
Merger Details
The combined entity will have $168 billion in assets, $134 billion in deposits and $117 billion in loans. Also, it will operate under the name and brand of Huntington with two headquarters in Detroit, MI and Columbus, OH, and maintain its operating presence in all the existing markets.
Notably, the combined company will be one of the top 10 U.S. regional banks, and rank fifth in approximately 70% of deposit markets. Also, the entity with the largest branch share will be positioned second to Consumer Deposits in terms of footprint.
The companies also expect to derive some financial benefits from this deal. Cost synergies are anticipated to be around $490 million, or 37% of TCF's non-interest expenses. Per Huntington’s expectations, the deal is likely to be 18% accretive to earnings by year-end 2022, including the fully phased-in transaction cost synergies.
The combined entity is aimed at capturing market opportunities and boosting the client base through a distinctive, "People-First, Digitally-Powered" customer experience. Moreover, the companies’ expanded scale, technological advancement and increased product offerings will help boost its market share.
Our Take
Huntington’s acquisition of TCF Financial is in sync with its aim to increase long-term shareholder value in the current era of digitization. The deal is capable of withstanding the uncertainty surrounding the economy due to the coronavirus pandemic.
In the current scenario, the banking sector has been witnessing an increase in M&A activities to dodge the heightened costs of regulatory compliance and increased investments in technology, in a bid to be competitive.
M&T Bank (MTB - Free Report) and People’s United announced another such merger deal. The all-stock deal worth $7.6 billion, is expected to close in the fourth quarter of 2021, subject to necessary approvals.
Notably, shares of Huntington and TCF Financial have rallied 30.9% and 40.9%, respectively, over the past six months.
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Huntington (HBAN) & TCF Merger Deal Gets Regulatory Nod
The merger deal of Huntington Bancshares Incorporated (HBAN - Free Report) and TCF Financial Corporation has been approved by the Federal Reserve and the Office of the Comptroller of the Currency, with input from the United States Department of Justice's Antitrust Division ("DOJ").
Shares of Huntington and TCF have gained 2.9% and 3.5%, respectively, since the announcement.
The deal received shareholders’ approval in March 2021 and is now set to close on or around Jun 9, 2021, subject to the satisfaction or waiver of the remaining customary closing conditions.
Along with this, the companies announced that TCF National Bank has signed a purchase and assumption agreement to divest 14 banking centers in Michigan to Horizon Bancorp, Inc. (HBNC - Free Report) . This move is in connection to the proposed merger.
The branches, with about $975 million worth deposits and $275 million in total loans, are being divested in satisfaction of commitments to the DOJ and the Federal Reserve Board in connection with Huntington's proposed acquisition of TCF.
The branch sale is expected to close by the third quarter of 2021, subject to regulatory approval and other customary closing conditions, which includes completion of the merger of Huntington and TCF.
Merger Details
The combined entity will have $168 billion in assets, $134 billion in deposits and $117 billion in loans. Also, it will operate under the name and brand of Huntington with two headquarters in Detroit, MI and Columbus, OH, and maintain its operating presence in all the existing markets.
Notably, the combined company will be one of the top 10 U.S. regional banks, and rank fifth in approximately 70% of deposit markets. Also, the entity with the largest branch share will be positioned second to Consumer Deposits in terms of footprint.
The companies also expect to derive some financial benefits from this deal. Cost synergies are anticipated to be around $490 million, or 37% of TCF's non-interest expenses. Per Huntington’s expectations, the deal is likely to be 18% accretive to earnings by year-end 2022, including the fully phased-in transaction cost synergies.
The combined entity is aimed at capturing market opportunities and boosting the client base through a distinctive, "People-First, Digitally-Powered" customer experience. Moreover, the companies’ expanded scale, technological advancement and increased product offerings will help boost its market share.
Our Take
Huntington’s acquisition of TCF Financial is in sync with its aim to increase long-term shareholder value in the current era of digitization. The deal is capable of withstanding the uncertainty surrounding the economy due to the coronavirus pandemic.
In the current scenario, the banking sector has been witnessing an increase in M&A activities to dodge the heightened costs of regulatory compliance and increased investments in technology, in a bid to be competitive.
M&T Bank (MTB - Free Report) and People’s United announced another such merger deal. The all-stock deal worth $7.6 billion, is expected to close in the fourth quarter of 2021, subject to necessary approvals.
Notably, shares of Huntington and TCF Financial have rallied 30.9% and 40.9%, respectively, over the past six months.
Currently, both Huntington and TCF Financial carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>