Boston, MA, 04/11/2014 (usastockreport) – Huntington Bancshares Incorporated (NASDAQ:HBAN) announced that it has signed a definitive agreement on April 9, according to which, Huntington National Bank will acquire 11 branches in East and Central Michigan from Bank of America Corp (NYSE:BAC).
The proposed purchase will boost the bank’s Michigan branch to 173 statewide, which include 80 locations in the East Michigan region. Huntington will buy almost $450 million in deposits, for a premium of 3.5% according to the deposit balances at the time of the completion of the transaction. The agreement to buy branches and deposits does not include loans and is forecasted to be close by the second half of the year.
Huntington Bancshares Incorporated (NASDAQ:HBAN)’s latest announcement highlights the bank’s commitment of expansion in Michigan. It has also engaged in a number of public and private partnerships with the state and Michigan Economic Development Corporation for three years. The partnerships include the successful achievement of a $2 billion statewide lending commitment to small and commercial businesses. The bank is also involved with Meijer in an ongoing strategic partnership that had brought in almost 40 in- store locations ever since it was launched in 2012. The partnership will consist of over 80 in- store Michigan locations overall in the next six years that is by 2020.
Huntington Bancshares Incorporated (NASDAQ:HBAN)’s new customers will benefit from the bank’s unique products, including Asterisk Free Checking®, which is a checking account requiring no fixed monthly fee. Another product called the 24-Hour Grace®, which provides the users a chance to avoid overdraft fees, will require non minimum balance. The agreement will also take Huntington’s business banking closer to reaching the position of the No.1 small Business Administration lender in the region. As the acquisition is completed, Huntington’s customers will also gain access to its entire 1,500 ATM network across the Midwest without any service charge.