TCF Financial makes in-store branch deal in Chicago

Northwestern Financial Review, Dec 6, 1997

TCF Financial Corp., Minneapolis, and American Stores Company, parent company of Jewel-Osco, announced an agreement for TCF National Bank Illinois to acquire and operate 76 branches in Jewel-Osco stores in the Chicago area presently operated by Bank of America. As part of the agreement, TCF Bank will convert existing deposits by offering TCF products to Bank of America customers and will assume the fixed assets at those 76 branches and 178 ATMs located in Jewel stores. The transaction is expected to close Jan. 30.

Upon completion of the transaction, TCF Bank will have 124 banking facilities and 472 ATMs in the Chicago area.

The 76 in-store branches have $115 million in deposits. TCF Bank will hire Bank of America employees to staff the facilities. TCF Bank has agreed to open 11 more in-store branches during the remainder of 1998, and at least 25 additional facilities each year thereafter. Jewel-Osco has 184 stores in the Chicago area.

TCF will be reimbursed for part of its operating costs in the first three years of operation at the initial 76 branches.