TCF Merging with Detroit-Based Chemical Financial Corp.
Courtesy of TCF Bank

TCF Merging with Detroit-Based Chemical Financial Corp.

Deal means another notable headquarters loss for Twin Cities.

Wayzata-based TCF Financial Corporation is merging with Detroit-based Chemical Financial Corporation in an all-stock deal announced on Monday morning. The combined company will have approximately $45 billion and assets and more than 500 branches across nine states. The company’s joint announcement said that the deal will create a “premier Midwest bank.”

Craig Dahl, TCF’s chairman and CEO, will serve as CEO and president of the new company, which will operate under the TCF name and brand. But the combined bank will be headquartered in Detroit, marking the loss of a significant corporate headquarters for the Twin Cities. TCF shareholders will own 54 percent of the new company; Chemical Financial shareholders will own 46 percent.

Both banks are touting the deal as a way to increase the scale of its business and accelerate growth. They are expecting $180 million in expense savings through centralized overhead costs and technology efficiencies. Because there’s little territorial overlap between the two, bank branch employees and customers probably won’t see much difference.

“There’s very little branch overlap,” Dahl told Twin Cities Business. “It’s not going to be built on a whole bunch of branch closures.”

In 2018 Chemical Financial relocated its headquarters from Midland, Michigan to Detroit. At the same time, it unveiled plans for a new 20-story headquarters office tower to be built in downtown Detroit.

Asked where his office will be located Dahl said, “I’m probably going to be on the road a lot. I’ll have offices both in Wayzata and Detroit.”

TCF currently has 314 branches in Arizona, Colorado, Illinois, Michigan, Minnesota, South Dakota and Wisconsin; Chemical’s 212 branches are in Michigan, Ohio and Indiana.

TCF has approximately 5,600 employees; Chemical Financial has about 3,200 employees. Dahl said that no decisions have been made about the number of jobs that will be cut to achieve cost savings.

Dahl said that while hammering out the deal they decided that TCF had better brand recognition. When it came to determining the headquarters location, Dahl noted Chemical Financial’s momentum in the Michigan market. The company’s commitment to building a new tower in downtown Detroit also came with a pledge to add 500 new jobs there.


TCF chief executive Craig Dahl. (Photo courtesy of TCF)

According the statement on the transaction the company will “maintain a significant operating presence in Minneapolis as well as Midland and Chicago.”

Both companies also issued fourth quarter and full-year 2018 financial results on Monday morning. TCF posted revenue of $1.5 billion with net income of $304.4 million for the year. Chemical Financial reported $776 million in revenue with a net profit of $284 million.

The merger is expected to close in the late third quarter or early fourth quarter later this year.

Vance Opperman, currently the lead independent director on TCF’s board of directors, will serve as the lead independent director for the combined bank. Opperman is president of Minneapolis-based Key Investment Inc. which owns MSP Communications, publisher of Twin Cities Business magazine.

In the Twin Cities, the first question of some in the wake of the deal is, “What happens to the name of TCF Bank Stadium on the University of Minnesota campus?” TCF is paying the University $35 million over the course of 25 years for the naming rights to the football stadium, which opened in 2009.

“There shouldn’t be any change in our commitment to the University of Minnesota,” said Dahl.