(Updates with deposit premium in second paragraph.)
May 14 (Bloomberg) -- Huntington Bancshares Inc., the Ohio lender that agreed in April to buy 11 Michigan branches from Bank of America Corp., plans to buy 13 more.
Huntington will gain about $500 million in deposits from the latest deal, the Columbus-based company said today in a statement. The sale includes a 3.5 percent premium on deposit balances upon completion, which is expected in the second half of this year. Loans aren’t included, the bank said; additional terms weren’t disclosed. The previous purchase from BofA covered $450 million in customer accounts.
“Huntington has committed within the past four years to increase our Michigan branch network by more than 120 new locations,” said Huntington Chief Executive Officer Stephen D. Steinour in the statement. “We view Michigan as very attractive.”
Regional lenders are scooping up pieces of rivals as some of the industry’s leaders, including Bank of America and Citigroup Inc., exit some regions and lines of business. BB&T Corp., based in Winston-Salem, North Carolina, agreed in December to acquire 21 Texas branches from Citigroup, which plans to focus only on the world’s top 150 cities.
Bank of America, ranked second by assets, has been trimming branches as part of a larger effort to reduce costs. The Charlotte, North Carolina-based company has about 5,100 outlets nationwide. After the latest deal is completed, Huntington will have more than 700 locations, according to the firm.