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Huntington Bancshares to Acquire Municipal Securities Firm

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Huntington Bancshares HBAN recently announced that it has entered into a definitive agreement to acquire Hutchinson, Shockey, Erley & Co. (“HSE”), a Chicago-based public finance investment bank and broker-dealer. Though terms of the deal were not disclosed, the company expects it to be closed in the final quarter of 2018, post regulatory approvals.

HSE is one of the nation’s largest securities firms focused exclusively on municipal securities serving several sectors such as public sector clients, including state and local governments and non-profit organizations, underwriting and structuring debt that funds school construction, infrastructure development and other capital projects.

Scott Kleinman, executive managing director at Huntington Capital Markets said, “We are very excited about the expertise and capabilities they will bring to Huntington Capital Markets to complement the growth we’ve experienced in our existing government banking and public finance businesses.”

Further, Tom Dannenberg, CEO of HSE noted the similarities of the two companies’ work culture and commitment to enhancing customer satisfaction. He also said, “Joining forces with Huntington will yield clear benefits for both parties as we grow and expand capabilities to serve our clients.”

After the deal is closed, HSE team will continue to be led by its CEO and operate under HSE brand name with headquarters in Chicago. The firm’s operations are supported by 11 offices across nine states, housing 51 employees. HSE will operate as a standalone broker dealer working under Huntington Capital MarketsSM.

Huntington’s strong liquidity position enables it to undertake strategic growth measures, which are likely to keep supporting its top-line growth and help it gain market share.

Shares of Huntington have gained 9.4% so far this year, slightly underperforming the 11.3% growth for the industry.

It currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Comerica Incorporated CMA has witnessed 4.6% upward estimate revision over the last 30 days. Also, the company’s shares have risen more than 38% in the past year. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

M&T Bank Corporation MTB has witnessed upward estimate revision of 2.1% over the last 30 days. Additionally, the stock has jumped more than 10% in a year’s time. It currently carries a Zacks Rank #2 (Buy).

Northern Trust Corporation’s NTRS Zacks Consensus Estimate for current-year earnings has been revised 3% upward over the last 30 days. Also, the company’s shares have risen more than 25% in the past year. It carries a Zacks Rank of 2, at present.

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