tcf bank acquisition

The TCF acquisition drew praise from Terry McEvoy, a managing director and bank analyst at Little Rock, Ark.-based Stephens Inc., who has been covering the Chemical Bank management team since soon after they founded First Michigan Bank as a single-branch community bank in Troy in 2007. It’s a hand-in-glove situation. Chemical Bank has hired Neumann/Smith Architecture to design the new headquarters building on a vacant lot south of The Filmore Detroit theater and Little Caesars Pizza’s new headquarters.The merger with TCF may require more space for the bank’s employees and less space for other tenants in the new tower, Torgow said.“We committed to bring 500 people to Detroit, but I think that number’s gonna grow,” Torgow told Crain’s on Monday morning after the merger was announced. The TCF Bank branches will add to the eight branches that Alaska USA currently operates in the Phoenix metro market, which will total 15 branches following the acquisition. “It speaks to how well banking is going in the Midwest and how well the economy is going here in general. Monday-Friday around 3 p.m. Highlights prominent personalities, job changes and executive appointments. Scoops on Chicago's residential real estate industry. The two companies said the new TCF Bank will be among the top 10 banks in market share in the Midwest.The combined companies will be based in Detroit under the TCF Bank name, but will maintain a significant operating presence in Minneapolis as well as Midland and Chicago.

The market is speaking. “We believe the combined company will also create new opportunities for our employees and enable us to attract and retain top talent.”The deal will add 17 percent to earnings per share for Chemical Financial shareholders and 31 percent for TCF shareholders, the banks said.In the Michigan market, the latest acquisition would move Chemical Bank from seventh place in deposits in Michigan to sixth, according to Crain’s data.

Most of the savings would be achieved through the elimination of redundancies in back-office staff and information systems technology, Chemical Bank spokesman Tom Wennerberg said.“There’s very, very little overlap anywhere in the country,” Torgow told Crain’s. “That deal always comes up because of how close they are on the map, but it doesn’t make a lot of sense,” he said.John Donnelly of the Grosse Pointe investment-banking firm of Donnelly Penman & Partners, was the broker who helped raise the money that launched First Michigan in 2007. “Keeping the TCF name makes for less disruption.”McEvoy said he expects Chemical/TCF to continue to grow through acquisitions once this deal is fully integrated. Upon completion of the deal, TCF shareholders will own 54 percent of the company and Chemical shareholders will own 46 percent, the companies said.Please select at least one newsletter to subscribe. Get the best business coverage in Chicago, from breaking news to razor-sharp analysis, in print and online. “We’re really anticipating very few changes in the branch network.”Chemical was already by far the largest bank headquartered in Detroit since announcing its move to the city from Midland last year, filling a void left by Comerica Inc. in 2007 when the bank with roots in Detroit predating the Civil War moved its corporate headquarters to Dallas.The return of more banking sector jobs to Detroit is welcome news, Wayne County Executive Warren Evans said Monday.“Given where Detroit and Wayne County were financially just a few years ago, this news says a lot about where we are today,” Evans said in a statement. Gary Torgow is now emerging as a major power broker. Coincidentally, he was at a national banking conference in Phoenix called the Acquire or Be Acquired conference, which is sponsored by Bank Director Magazine, when news of the TCF deal broke.“This is the premier banking conference in the county. There are more than 1,000 bankers and investment bankers here, and everyone is buzzing about the deal. Chemical Financial's $3.6 billion acquisition of TCF Financial to operate under the TCF Bank brand name will make it the largest midcap bank in the Midwest.