Huntington Bancshares Incorporated
) is set to further strengthen its Michigan branch network by
acquiring 13 branches in East Michigan from
Bank of America Corporation
). These branch additions follow the deal inked last month to
acquire 11 branches in Michigan from Bank of America.
The deal is expected to close in the latter half of 2014. According
to the terms of the deal, Huntington will assume deposits worth
$500 million, for a 3.5% deposit premium. However, the deal does
not include loan balances. Considering the prior acquisition deal,
the company will assume deposits of almost $1 billion from Bank of
The deal will enable Huntington to cater to the Monroe and Flint
markets through 11 locations while the Holland and Muskegon branch
locations further add to its present network there. Notably, upon
completion of the deal, Huntington will operate through more than
The latest deal comes as part of Huntington's strategy to boost its
footprint in Michigan, which is believed to be a lucrative market
for the company. Apart from a series of public-private alliances in
Michigan, the company initiated a strategic collaboration in 2012
with Meijer, Inc. - a retail chain based in Michigan, in order to
establish in-store locations. The company is currently running 40
in-store branches and aims to set up more than 80 branches in
Meijer's Michigan stores by 2020.
For a major regional bank like Bank of America, the deal seems to
be an effort to shed a number of branches to save costs. Notably in
Jan 2014, the company inked a deal to vend around 23 branches
located in Arizona and Nevada to
Washington Federal Inc
On Huntington's part, a strong capital position should help it
continue such acquisitions going forward.
Huntington currently carries a Zacks Rank #3 (Hold).
MidWest One Financial Group, Inc.
) is a better-ranked Midwest bank. It currently carries a Zacks
Rank #1 (Strong Buy).0
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BANK OF AMER CP (BAC): Free Stock Analysis
HUNTINGTON BANC (HBAN): Free Stock Analysis
MIDWESTONE FINL (MOFG): Free Stock Analysis
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