Given the combination of limited near-term organic growth opportunities and healthy capital levels, I expect to see quite a bit of bank M&A activity in 2021. While the combination of Huntington Bancorp (HBAN) and TCF Financial (TCF) surprises me a little bit in that I saw both more as hunters, the logic of the deal in the context of both near-term operating conditions and longer-term opportunity makes sense to me.
For TCF shareholders, I believe this is a fair deal, and one that is structured in a way that gives them future participation in any upside. Huntington was not my favorite bank when I last wrote about it, and the shares have very modestly underperformed peers since then, but I still think this is a pretty well-run bank, and it’s a name where the valuation isn’t too aggressive.
Follow this link to the full article:
With Organic Growth Under Pressure Huntington Bancorp And TCF Financial Agree To A Merger
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