July 22, 2021
  • July 22, 2021

Banque Horizon acquires TCF branches in Charlevoix, Gaylord

By on June 4, 2021 0


GAYLORD – A new name is about to enter the Northern Michigan banking market.

In connection with its merger with Huntington Bancshares Inc. in Ohio, TCF Financial Corp. agreed to sell 14 Michigan branches to Horizon Bank, a subsidiary of Horizon Bancorp Inc., based in Michigan City, Ind.

TCF Bank branches sold to Horizon include the Gaylord branch at 521 W. Main Street and a branch at 1425 Bridge Street in Charlevoix. Also included in the sale or disposal of branches at Au Gres, Big Rapids, Cadillac, Corunna, Fremont, Grayling, Houghton Lake, McBain, Midland, Owosso and Standish.

The switch to Horizon Bank is expected to take place by the end of the third quarter. The 14 TCF branches have approximately $ 976 million in deposits and $ 278 million in associated loans. Horizon has 74 branches in Indiana and Michigan.

The sales were demanded by the antitrust division of the US Department of Justice and the Federal Reserve Board to approve the Huntington and TCF merger, which is expected to be finalized this month.

Horizon has been in the Michigan market since the early 2000s.

“These branches are a logical extension of Horizon’s Michigan base low-cost deposit franchise to further enhance the already low-cost financing capacity to support overall growth. This acquisition adds mass and scale to Midland and provides access to other attractive markets in the north central regions of Michigan’s Lower Peninsula, ”said Mark Secor, executive vice president and chief financial officer of ‘Horizon Bancorp.

Secor said Horizon plans to keep all employees in the branches it acquires.

“We are a community bank and small business loans are the key to the success of our business loans. We are also an agricultural (agricultural) lender with a team dedicated to agri-food loans. Our loans are designed to meet the needs of consumers and businesses in the communities and surrounding areas where we are located, ”said Secor.

The coronavirus pandemic and e-commerce have accelerated the abandonment of the branch banking industry. Even though Horizon closed four branches in 2019 and two in 2020, Secor said branch banking services remain important to the business.

“Each year Horizon performs a branch rationalization analysis to assess changes in markets and our customers’ use of technology and has resulted in the consolidation of six branches over the past two years, some closures due to overlap. entire bank mergers, ”Secor said.

He added, “Branches are very important to Horizon’s business plan as well as to the continued development of the technology. Our customer base has changed and made a more pronounced shift towards using digital banking services since the pandemic with around 74% of customer transactions. done digitally. This compares to 57% at the end of 2019 before the pandemic. We have also seen a shift in active online users from 54% of our checking accounts using digital banking to 77% currently. Continuing to provide the delivery channels our customers need is our commitment. “

The branch sales to Horizon are in addition to the planned closure of the current 198 branches of Huntington and TCF Banks as part of the merger. This closure number includes all 97 branches of Meijer Bank in store in Michigan.



Source link