Huntington Bancshares (HBAN) – Get Report has agreed to buy TCF Financial (TCF) – Get Report in an all-stock deal valued at almost $6 billion in one of the biggest regional bank tie-ups of the year.
Under terms of the agreement, Detroit-based TCF will merge into Columbus, Ohio-based Huntington, with the combined holding company and bank operating under the Huntington name and brand following the closing of the transaction.
The merger will boost assets to about $168 billion, lifting it closer to competitors like Fifth Third Bancorp (FITB) – Get Report and KeyCorp (KEY) – Get Report. Upon closing, Stephen Steinour will remain chairman, president, and CEO of the holding company and CEO and president of the bank. Gary Torgow will serve as chairman of the bank’s board of directors.
Deals among financial services companies are increasing as U.S. regional lenders seek to bulk up to compete with giants such as JPMorgan Chase (JPM) – Get Report and Bank of America (BAC) – Get Report, which are moving into new states and spending billions annually on digital offerings.
Last month, PNC Financial Services (PNC) – Get Report agreed to buy Banco Bilbao Vizcaya Argentaria SA’s banking operations in the U.S. for $11.6 billion, the largest U.S. banking deal this year.