Denver, CO 05/22/2014 (Stocksntrade) – Ohio Lender, Huntington Bancshares Incorporated (NASDAQ:HBAN) has agreed to buy 13 more Bank of America’s branches as part of its larger plan to strengthen its branch network in Michigan. The transaction follows the acquisition of 11 branches in Michigan in April, still form Bank of America.
Huntington to Assume $500 Million worth of Deposits
Huntington Bancshares Incorporated (NASDAQ:HBAN), as part of the deal, will assume deposits thought to be worth $500 million at 3.5% deposit premium. The deal will not be inclusive of any loan balances. Taking into consideration earlier deal, Huntington Bancshares will assume deposits worth $1 billion from the Bank of America.
Acquisition of the Michigan Branches allows Huntington cater for the expansive Monroe and flint markets. Upon full completion of the deal in the second quarter, Huntington will operate more than 700 locations. Huntington Bancshares has over the past years perceived Michigan as one of the most lucrative markets that should be beneficial for the company going forward.
Huntington Bancshares Incorporated (NASDAQ:HBAN) continues to expand its diverse network in Michigan having signed a strategic collaboration in 2012 with Meijer Inc. As part of its effort to launch in store locations, in the area. The company is already running 40 in store branches and plans to set up more than 80 branches. Bank of America decision to dispose of its branches is part of its larger plan to save on costs.
Huntington Strong Capital Position
Huntington Bancshares Incorporated (NASDAQ:HBAN) currently commands a strong capital position that should help it acquire a number of acquisitions going forward. The acquisitions came as the company launched a new mobile app that will allow customers check their bank balances without having to go through the long log-in process. The service named Quick Balance is one of the few service that is able to deliver services with utmost speed
The app utilizes a multi-factor authentication system that ensures security of customer information for verification of identity and registration of devices.