Banking, finance, and taxes
Huntington Bancshares to Merge with TCF in $6 Billion All-Stock Deal
Published:
Huntington Bancshares Inc. (NASDAQ: HBAN) and TCF Financial Corp. (NASDAQ: TCF) on Sunday announced that the two regional banks will merge in a transaction that will create the nation’s sixth-largest regional bank, with a market cap of around $22 billion and approximately $168 billion in assets. The transaction values TCF at about $6 billion.
In a presentation for shareholders released Monday morning, Huntington said that TCF shareholders will receive slightly more than three shares of Huntington for each TCF share, or $38.83 per share, a premium of about 11% to Friday’s closing price of TCF stock. The merger is expected to close in the second quarter of 2021.
Huntington CEO Stephen Steinour will remain board chair, president and CEO of the bank holding company and president and CEO of the bank. TCF CEO Gary Torgow will serve as chair of the merged bank’s board of directors.
In the presentation to shareholders, the banks noted that the merged bank will be the nation’s sixth-large regional bank based on gross loans and leases of $117 billion, the eighth-largest based on total deposits of $134 billion and the fifth-largest on the basis of net income of $2.1 billion.
Huntington expects the transaction to boost earnings per share by 18% in 2022, including fully phased-in transaction cost savings. The combined bank, which will retain the Huntington name, will expand TCF’s headquarters in Detroit, where the commercial bank will be based. Columbus, Ohio, remains the headquarters for the holding company and the consumer bank.
The combined bank will become the largest regional bank based on the number of branches and the second-largest based on retail deposits. Huntington has 853 branches, while TCF has 464. The merger will give Huntington a much larger presence in Chicago, Minneapolis and the state of Michigan, to add to its strength in Ohio and western Pennsylvania.
TCF’s stock was inactive Monday morning, after closing at $34.78 on Friday. The stock’s 52-week range is $16.96 to $47.46, and the consensus price target is $35.50. TCF pays a dividend yield of 4.03%.
Huntington shares traded up by nearly 3%, at $13.30 in a 52-week range of $6.82 to $15.60. The consensus price target is $12.22, and Huntington pays a dividend yield of 4.64%.
24/7 Wall St.100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
