Huntington Bancshares Incorporated (NASDAQ:HBAN) is considering acquiring Firstmerit Corp (NASDAQ:FMER) but only if the Board of Governors of the Federal Reserve System approves it. The two have a unique history of having sustained banking needs of local communities, families, and businesses all over the Midwest. Hence their coming together will have such a positive impact on its customers. In any case, they both have well spread out branches that have enabled them to meet their service obligations.
However, even as the possibility of the merger beckons, FirstMerit Bank, N.A must comply with a particular condition. It must agree to sell 13 of its branches that are within Stark and Ashtabula counties. These particular branches are holding approximately $735 million and $115 million in total deposits and loans respectively.
First Commonwealth Bank will acquire the stripped branches alongside its close to 80 employees a move that president and CEO of Huntington Stephen D. Steinour say will ensure a smooth and seamless flow of operations. Nonetheless, branch conversions are still going and will probably come to a conclusion around the fourth quarter of 2016.
The merger will bring more investment
There is a bright future in the market which presents an excellent investment opportunity for people and businesses. Paul Greig, FirstMerit’s chairperson, president, and CEO commends the partnership citing that the two entities have common values and culture which will be a benefit to the larger community.
Greig adds that combined forces will offer stronger and more efficient services that every other person is seeking. Hence the merger is timely, and it is expected that it will bring on board an enhanced portfolio of industry leading products and services as well as added customer convenience.
Mergers of financial institutions
The recent past has had several financial institutions coming together not necessarily because one is weak but even for purposes of building a stronger brand. It helps in tailoring investments that are of benefit to the community and the shareholders as well.
