Companies said on Sunday that US regional lenders Huntington Bankshare and DCF Financial had entered into an all-stock deal to form a company with a market value of about $ 22 billion.
The merger will create an integrated holding company and a bank operating under the name Huntington.
The companies did not provide a value for the merger, but Huntington expects the deal to add 18% to earnings per share by 2022.
Softer financial terms and lower corporate taxes under the Trump administration have encouraged regional US lenders to continue to grow through deals as they compete with big players like JPMorgan Chase & Co and Wells Barco & Co.
Last month, Spain’s BPVA sold its U.S. business to BNC Financial Services Group Inc. for $ 11.6 billion, one of the largest global banking deals this year.
Refinitive data shows that Huntington Bankshare has a market capitalization of $ 13.15 billion and DCF Financial has a market capitalization of $ 5.3 billion.
The companies say the consolidated company will have approximately $ 168 billion in assets, $ 117 billion in debt and $ 134 billion in deposits, and the merger is expected to close in the second quarter of next year.
Stephen Steiner, CEO of Huntington, will be the Chairman, Chairman and CEO of Integrated Holdings.