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Jan. 28, 2019
Minnesota-based TCF Financial Corp. is merging with Detroit-based Chemical Financial Corp.
The company announced last year it was closing its operations center in Sioux Falls and still has a branch at 2508 S. Louise Ave.
TCF will merge into Chemical, and the combined holding company and bank will be based in Detroit and operate under the TCF name and brand following the closing of the transaction.
The combined company will have $45 billion in assets, $34 billion in deposits and more than 500 branches across nine states, including four of the top 10 Midwest markets, it said in a statement.
“With a shared strategic vision and increased scale and capabilities, our two complementary banking platforms will be positioned to better serve our customers and communities,” said Chemical’s chairman Gary Torgow.
“The combination of TCF and Chemical creates the largest midcap bank in the Midwest, poised to deliver double-digit EPS accretion for each set of shareholders, significant cost synergies, top-tier return metrics, a more diversified balance sheet and a lower risk profile. We also share a deep commitment to supporting and giving back to the communities we serve.”
The merger will leverage the strengths of Chemical’s community banking and wealth management capabilities with TCF’s large deposit franchise and expertise in wholesale lending on a national basis, the company said.
“We are confident that this merger will enhance our ability to deliver stronger and more sustainable growth and greater value creation than either company could achieve alone. The new TCF will have attractive positions in both its product suite and market footprint as well as a more diversified loan portfolio and increased lending capabilities across asset classes, geographies and industry verticals,” TCF president and CEO Craig Dahl said.
“Through improved profitability and earnings predictability, we will be able to reinvest in the business to drive multiple growth engines, enhance our ability to compete in the next generation of banking and sustain consistent return on capital for shareholders. We believe the combined company will also create new opportunities for our employees and enable us to attract and retain top talent.”
The merger is expected to close in the third or fourth quarter.
TCF Financial, which announced last year it was closing its Sioux Falls operations center, is merging to create a $54 billion company.