2 Midwest-based banks plan to merge, headquarter in Detroit

Chemical Bank and TCF Bank are planning to merge to create a bank with $45 billion in assets. Pending approval, the new TCF Corporation would be twice as large as Chemical Bank. It will operate under the TCF name and brand. 

The company will have more than 500 branches in nine states, including "significant operation centers" in Minneapolis and Chicago.

Thomas Shafer, CEO and President of Chemical Bank, said the merger will make TCF vibrant in just a couple of years.

"Their strength is going to add to a chemical story, strengths of a chemical story will add to TCF. So we end up with a more vibrant company," Shafer said.

The new headquarters for TCF bank was unveiled Monday and will be on Woodward next door to The Fillmore Detroit. It will also mean 500 jobs in Detroit. 

TCF Chairman and CEO Craig Dahl says the two companies will become a powerhouse. 

"There's very little branch overlap in this transaction so there's not a lot of cost savings from closing branches. So we believe from a customer point of you, we will be able to open new branches and have more people in the market and not less," Dahl said. 

The $45 billion merger will mean 70 TCF locations in southeast Michigan with new ones in Detroit and a total of 550 TCF branches in 9 states, making it the 27th largest bank in the country.

The merger follows Chemical Bank's announcement in July that it was moving its headquarters from Midland to downtown Detroit, building a 20-story building. TCF says they will accelerate the $60 million dollar project.

The merger is expected to be complete by the end of the year.

TCF Financial Corp. is based out of Wayzata, Minnesota.

The Associated Press contributed to this report