Continuing its expansion in Michigan, Huntington Bancshares (HBAN) in Columbus, Ohio, has agreed to purchase 11 branches in the eastern part of the state from Bank of America (BAC).
The deal, expected to close in the second half of the year, would give Huntington an additional $450 million in deposits in Michigan. As of June 30, 2013, Huntington had the No. 6 market share in the state, with nearly $7.8 billion, according to Federal Deposit Insurance Corp. data. The $59 billion-asset Huntington would not acquire any loans in the deal.
Huntington has shown a serious commitment to grow its business in Michigan over the last few years.
It recently began working with the Michigan Economic Development Corporation to form the Pure Michigan Lending Initiative, which plans to make up to $250 million in small-business loans available throughout the state.
Additionally, the bank in 2012 started a 10-year partnership with the regional supermarket Meijer to open more than 80 in-store Huntington branches. So far, 39 branches are open for business in Meijer stores.
Huntington has 173 Michigan branches, including 80 in East Michigan. As part of the Bank of America branch acquisition, Huntington will expand its operations into Midland, Alma, Port Huron, Gratiot, St. Clair, Algonac and Richmond.
"We look forward to welcoming these new Michigan customers to Huntington as we enhance our branch service network in an important part of the state," said Stephen Steinour, Huntington's chairman, president and chief executive, said in a news release.
For B of A, the sale is part of the bank's ongoing effort to streamline its branch network. Over the past year it has sold or agreed to sell roughly 150 branches to various buyers, including dozens in six western states to Washington Federal (WAFD) of Seattle.