The Department of Justice announced today that Huntington Bancshares Incorporated and TCF Financial Corporation have agreed to sell 13 branches in Michigan, with approximately $872.3 million in deposits, to resolve antitrust concerns arising from Huntington’s planned acquisition of TCF Bank. The divested assets include all of the deposits and loans associated with the divested branches, as well as the physical assets.
“Banks are a critical part of the American economy,” said Acting Assistant Attorney General Richard A. Powers for the Justice Department’s Antitrust Division. “Families and small businesses rely on them to keep their money safe and obtain credit for important life purchases and investments. This settlement protects banking customers by ensuring that they continue to have access to competitively priced banking products and services.” Under the agreement with the Justice Department, the parties will divest branches in Michigan, located in Arenac, Charlevoix, Crawford, Newaygo, Otsego, Mecosta, Shiawassee, Wexford and Missaukee counties, and in the City of Midland. The companies also have agreed to suspend existing, and not to enter into new, non-compete agreements with branch managers and loan officers located in the divestiture counties for a period of 180 days following the consummation of their merger. Further, the companies have agreed that any traditional branches located in any overlap market in Michigan and Ohio that are closed within three years of the merger’s closing will be sold or leased to an insured depository institution that offers deposit and credit services to small businesses. As a result of the acquisition, Huntington will become the 25th largest bank holding company based on assets.
The proposed merger is subject to the final approval of the Board of Governors of the Federal Reserve System. The department’s role when reviewing a proposed bank merger necessarily focuses on the merger’s competitive effects. Here, the department has advised the Federal Reserve Board that the department will not challenge the merger provided that the parties divest branches in certain areas of overlap and agree that any traditional branches in Michigan and in the five overlapping counties in Ohio that are closed within three years following the merger, will be marketed to an institution with a demonstrated record of providing services and loans to the local community. The parties’ commitments to the department are included as a condition to the Federal Reserve Board Order allowing the transaction.
Huntington is the holding company of The Huntington National Bank, Columbus, Ohio, with approximately $120 billion in assets. Huntington has 839 full-service branches across seven Midwestern states. Huntington provides a wide range of banking and other financial services to consumers, businesses and wealth management customers.
TCF is the holding company of TCF National Bank, Detroit, Michigan, and has approximately $48 billion in assets. TCF has 475 branches primarily located in Michigan, Illinois and Minnesota. TCF also provides a broad array of consumer and business banking services, along with other services like wealth management and specialty leasing services, to its customers.
A list of the branches to be divested is below.
Branch Address City County State Zip Code Au Gres Branch 144 W Huron Road Au Gres Arenac MI 48703 Standish Branch 220 South Main Street Standish Arenac MI 48658 Grayling Main 2500 South I-75 Business Loop Grayling Crawford MI 49738 Charlevoix Branch 1425 Bridge Street Charlevoix Charlevoix MI 49720 Fremont Branch 211 W Main Street Fremont Newaygo MI 49412 Cadillac North End 1408 N Mitchell Street Cadillac Wexford MI 49601 Cadillac Downtown 302 S Mitchell Street Cadillac Wexford MI 49601 McBain Branch 101 N Roland Street McBain Missaukee MI 49657 Gaylord Main 521 W Main Street Gaylord Otsego MI 49735 Circle Branch 2910 Jefferson Avenue Midland Midland MI 48640 Big Rapids Main 125 N Michigan Avenue Big Rapids Mecosta MI 49307 Corunna Office 310 N Shiawassee Street Corunna Shiawassee MI 48817 Owosso East Branch 1345 E Main Street Owosso Shiawassee MI 48867
Source: US Department of Justice
