TCF National Bank in the US has signed an agreement to sell its 14 branches in Michigan to Horizon Bank.
The step was taken to resolve antitrust concerns related to Huntington’s planned acquisition of TCF National Bank.
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The branch deal will add $976m in deposits and $278m in associated loans to Horizon Bank’s books. Overall, Horizon Bancorp subsidiary expects to add around 50,000 primarily retail and small business customer accounts through the deal.
As agreed, the entire workforce working at the branches will also migrate into Horizon Bank.
Horizon Bancorp chairman and CEO Craig M. Dwight said: “We are excited to welcome Horizon Bank’s newest employees and customers and introduce them to our record of exceptional service to consumers, small businesses, non-profits and municipalities across Michigan and Indiana.
“This financially and strategically attractive transaction is a logical extension of our efficient retail franchise, which is designed to further enhance our low-cost core deposit and funding capability to support loan growth in a recovering economy.”
The deal is expected to complete by the end of Q3 2021, subject to regulatory approval and other conditions.
Currently, Horizon Bank operates 74 bank branches. This will be the lender’s fifth branch transaction in the last five years.
Separately, Huntington Bancshares announced the receipt of all regulatory approvals for TCF National Bank acquisition.
In December last year, Huntington Bancshares signed a deal to acquire TCF National Bank’s parent company TCF Financial. The all-stock deal valued TCF at $6bn.
The combination is now expected to close on or around 9 June 2021.
