Ohio-based bank holding company, Huntington Bancshares Incorporated, has reportedly signed a partnership deal with TCF Financial Corporation. As per the definitive agreement, the two organizations will initiate an all-stock merger of worth USD 22 billion to form a top 10 U.S. regional bank, with head offices located in Columbus, Michigan, Ohio, and Detroit.

For the record, TCF Financial Corporation is a Michigan-headquartered financial holding organization that offers services such as trust & wealth management and specialty leasing and lending to commercial clients, small businesses and other consumers.

Sources familiar with the matter cited that the syndicate will operate under Huntington banner after legally binding the agreement. Stephen D. Steinour, CEO, President and Chairman of Huntington will retain his position while Gary Torgow will be appointed as Chairman of the bank's board of directors.

Sources further claimed that the new merger will have assets worth around USD 168 billion with approximately USD 117 billion in loans and USD 134 billion in deposits. The joint venture is aimed at improving Huntington's market presence by increasing its sales and providing greater revenue generation opportunities. The company will be extending its top quartile financial metrics after the agreement is closed.

These resources of both the companies will reportedly help in augmenting the long-term shareholder value. In this context, Steinour claimed that Huntington's expertise in digital investments will aid TCF’s people-first, digitally-powered customer experience, and ultimately drive overall economic growth.

Meanwhile, Gary Torgow mentioned that this partnership will provide more job opportunities in Detroit while widening the scope for deeper investments. The newly formed organization will emerge as a top regional bank and will be beneficial for all the stakeholders as well as team members, he added.

Reportedly, Huntington Bancshares believes the transaction to increase its earnings per share by 18% by the year 2022. The merger is expected to close in the second financial quarter of 2021, claimed reliable sources.

Source credits –

https://www.prnewswire.com/news-releases/huntington-bancshares-and-tcf-financial-corporation-announce-merger-to-create-top-10-us-regional-bank-301191723.html