TCF Financial Corp. and Chemical Financial Corp. Complete Merger
TCF Financial, based in Wayzata, Minnesota, completed its merger with Chemical Financial, a Detroit-based bank, this week. The newly merged bank will keep TCF’s name and CEO, but will take on Chemical Financial’s headquarters location in Detroit. The new company will have more than $47 billion in assets and will create the 27th largest bank in the country.
There has been an increase in bank-related M&A activity since early in 2018. In May of 2018, bank-related M&A deals reached more than $7.4 billion. The TCF-Chemical merger is valued at $3.6 billion, which is on the higher end of such M&A deals recently. Not to be outdone, according to the CEO, more acquisitions may be on the horizon as more mid-size, smaller and local banks realize that they may not be able to stand-alone anymore. After acclimating as a newly merged bank, TCF will likely look to acquire other banks sitting at or around the $20 billion mark.
The TCF-Chemical will create a net total of around 300,000 to 400,000 new accounts. The first year post-closing will be focused on integrating the new customers into the combined bank, according to TCF’s CEO. In addition to new accounts, the merged bank will operate more than 500 branches throughout the Midwest and hopes to continue to attract new customers.