A major step in the eventual elimination of the Chemical Bank name, in Michigan's Great Southwest and across the system, took place today when, in separate special meetings, the shareholders of both Chemical Financial Corporation and TCF Financial approved the proposed merger of equals in which TCF will merge into Chemical, but the name of the combined institution will be TCF when the transaction is formally closed -- likely in the third or fourth quarter of the year. As a result, the largest banking company headquartered and operating branches in Michigan is about to get even larger.
The combined holding company and bank will be headquartered in Detroit, and will operate under the TCF name and brand once the deal is done.
Craig Dahl, Chairman & CEO at TCF Financial says, “I am encouraged by the strong level of shareholder support received for this partnership and the accelerated shareholder value we expect it to create,” and adds, “This positive shareholder response demonstrates a broad recognition of the shared strategic vision and complementary strengths of the two organizations. We look forward to bringing together the best of both banks to benefit our shareholders, customers, employees and the communities we serve.”
Over at Chemical, Executive Chairman Gary Torgow says, “Today’s vote was an important step for us as we move forward with our focus on creating a premier Midwest bank,” and notes, “As we become one company, we will be able to provide a more robust product set to a broader customer base, with limited overlap and disruption. With our increased scale and an enhanced competitive position, our new organization will be poised to thrive in today’s evolving banking environment.”
Upon completion of the merger, the combined company will have more than $45-billion in total assets and be a top 10 bank in the Midwest, based on deposit market share. With over 500 combined branches across nine states, the new organization will have a substantial presence in key Midwest markets including Detroit, Chicago, Minneapolis, Milwaukee and greater Michigan.
The merger is expected to close in the third quarter or early in the fourth of 2019, subject to satisfaction of customary closing conditions, including receipt of regulatory approvals.
Chemical Financial Corporation is the largest banking company headquartered and operating branches in Michigan, as it operates through its subsidiary bank, Chemical Bank, with 212 banking offices located primarily in Michigan, northeast Ohio and northern Indiana. As of March 31, 2019, Chemical had total consolidated assets of $21.8 billion.
TCF is a Wayzata, Minnesota-based national bank holding company, which, as of March 31, 2019, had $24.4 billion in total assets and 312 bank branches in Illinois, Minnesota, Michigan, Colorado, Wisconsin, Arizona and South Dakota providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing and equipment finance business in all 50 states and commercial inventory finance business in all 50 states and Canada.