Huntington Bancshares is merging with TCF Financial in a $22 billion deal that will result in the development of one of the top 10 U.S. regional banks.
“This merger combines the best of both companies and provides the scale and resources to drive increased long-term shareholder value. Huntington is focused on accelerating digital investments to further enhance our award-winning people-first, digitally powered customer experience,” Stephen D. Steinour, chairman, president, and chief executive officer of Huntington, said in a press release.
He added that the two companies are stronger together and in a better position “to support our customers and drive economic growth in the communities we serve.”
TCF, with 475 branches, will merge into Huntington, which has 839 branches in seven states. The newly-combined company will operate under the Huntington name and brand. Steinour will retain his current positions as president and CEO, while Gary Torgow will take over as chairman of the bank’s board of directors.
“This partnership will provide us the opportunity for deeper investments in our communities, more jobs in Detroit, an increased commitment in Minneapolis and a better experience for our customers,” Torgow said. “We will be a top regional bank, with the scale to compete and the passion to serve. Merging with the Huntington platform will be a great benefit to all of our stakeholders and will drive significant opportunities for our team members.”
Bank mergers are starting to get some of the antitrust scrutiny that tech companies have been experiencing. Rep. Maxine Waters (D-California) is calling for an in-depth investigation into the $11.6 billion merger deal on the table between PNC and BBVA.
Some 219 bank and thrift deals took place through October of last year; this year has seen more than 90. Other recent bank mergers include First Citizens BancShares’ $2.2 billion deal with CIT Group as well as BB&T Corp. and SunTrust Banks.