Boston, MA 04\/14\/2014 (wallstreetpr) \u2013\u00a0Huntington Bancshares Incorporated (NASDAQ:HBAN) <\/b>signed an agreement with Bank of America to acquire 11 branches and deposits. It expects to complete the transaction by 2Q2014 under regulatory approvals. The Bank aims to strengthen its statewide network and expand with the addition of branches.<\/p>\n
Transaction\u2019s gain<\/b><\/p>\n
The transaction will increase both branches and deposit of the bank. The Bank is now not considering the loans and other liabilities into the negotiation. It increases the number of branches to 173 in Michigan State, including 80 in east Michigan. The transaction also increases the Bank\u2019s deposit to ~$450 million with a deposit premium of 3.5%.<\/p>\n
Long-term advantage<\/b><\/p>\n
Huntington Bancshares Incorporated (NASDAQ:HBAN) retains market position among small business lenders with the extension of its business banking. The Bank also benefits with increasing customers that allow offering new product and services to both new and existing customers. HBAN will have a larger network of services both by branches and ATM services. Customers now access to HBAN\u2019s 1,500 ATMS and 700 branches.<\/p>\n
In 2013, HBAN reported growth in deposit and loans due to increased penetration of products or services in customer and commercial lending. The Loan to deposit ratio during the period was 91% and anticipates growth in deposits, in coming periods that help them to reduce liquidity risk. Therefore, it allows acquiring branches outside its home state. In addition, the Bank’s Tier-1 capital continues to increase on quarter-on-quarter that will further help to improve financial strength.<\/p>\n
Conclusion<\/b><\/p>\n
HBAN continues to grow with increasing commercial opportunities especially in small businesses that help to improve performance. So, the Bank expects to enhance customers\u2019 base by developing the relationships with commercial customers.<\/p>\n
Huntington Bancshares Incorporated (NASDAQ:HBAN) intends to grow by extending services across Michigan with a series of public-private partnerships. Recently, the Bank has completed lending of $2 billion to commercial and small businesses in Michigan. In addition, the Bank has already expanded services by partnering with Meijer at 40 locations by 2012 and plans to widen its in-store locations to more than 80 across Michigan by 2020.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 04\/14\/2014 (wallstreetpr) \u2013\u00a0Huntington Bancshares Incorporated (NASDAQ:HBAN) signed an agreement with Bank of America to acquire 11 branches and deposits. It expects to complete […]<\/p>\n","protected":false},"author":2,"featured_media":19085,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[2914,2915],"stock_ticker":[],"class_list":["post-19558","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-huntington-bancshares-incorporated-nasdaqhban","tag-nasdaqhban","entry"],"acf":[],"yoast_head":"\n