Sky Financial Group

Sky Financial Group, Inc. was a diversified financial-services holding company based in Bowling Green, Ohio. It operated primarily in the Midwestern United States and was best known for its principal banking subsidiary, Sky Bank. The group was created in 1998 through a merger of equals between Mid Am, Inc., a Bowling Green-based institution with approximately $2.2 billion in assets, and Citizens Bancshares, Inc., headquartered in Salineville, Ohio, with approximately $1.8 billion in assets. The combination produced a financial company with about $4 billion in assets and an initial position among the larger American banking organizations. Sky Bank combined commercial and retail banking activities. Its network ultimately included approximately 330 financial centers and more than 400 automated teller machines across Ohio, Pennsylvania, Indiana, Michigan, and West Virginia. The bank served consumers, businesses, and other institutional customers through deposit accounts, lending, branch banking, and related financial services. Sky Financial Group also owned businesses providing investment, trust, and insurance services, giving the holding company a broader scope than a conventional community-bank operator. During its nine years of independent operation, the group completed fourteen acquisitions and mergers, expanding its geographic reach and customer base. This acquisition-led growth helped Sky progress from the roughly $4 billion organization formed in 1998 to a substantially larger regional banking company. By the time Huntington Bancshares agreed to acquire it, Sky Financial Group had more than $17.6 billion in assets and approximately 4,330 employees. It was described as the 43rd-largest bank holding company in the United States at that stage of its development. Huntington Bancshares, headquartered in Columbus, Ohio, announced its agreement to take over Sky Financial Group on December 20, 2006. Although characterized as a merger, Huntington was the surviving and controlling organization. Integration began in March 2007, with the companies consolidating overlapping offices and operations. The process included the closure of Sky operating centers in Bowling Green, Toledo, Cleveland, and East Liverpool, as well as the consolidation of 88 banking centers, representing roughly one-quarter of Sky's branch footprint. The transaction attracted public discussion because of its possible effects on employment, banking access, and local economic activity in communities where the two organizations overlapped. Former Ohio Congressman Dennis Kucinich asked the Federal Reserve Bank of Cleveland to hold hearings concerning the transaction, but the Federal Reserve approved the merger. Sky Financial Group ceased to exist as an independent banking organization following completion of the Huntington transaction in 2008. Its history illustrates the consolidation of regional American banking during the late 1990s and 2000s, when repeated mergers expanded geographic scale while also producing branch rationalization and the retirement of acquired institutional identities.

Sky Financial Group emerged in 1998 from the merger of equals between Mid Am, Inc. of Bowling Green, Ohio, and Citizens Bancshares, Inc. of Salineville, Ohio. Mid Am was reported to have approximately $2.2 billion in assets, while Citizens Bancshares had approximately $1.8 billion. Their combination created a holding company with around $4 billion in assets and established Sky as a significant regional banking organization. The new group operated through Sky Bank, a commercial and retail banking institution headquartered in Salineville, together with wholly owned businesses focused on investment, trust, and insurance services. Sky Bank developed a multistate Midwestern presence covering Ohio, Pennsylvania, Indiana, Michigan, and West Virginia. At its largest reported scale, the bank operated about 330 financial centers and more than 400 ATMs. The holding company served both individual and business customers and used acquisitions and mergers as a central expansion method. Sky completed fourteen acquisitions and mergers during the nine years between its formation and the Huntington transaction. This activity expanded the company's branch network and market presence and helped increase its assets substantially. By the time Huntington Bancshares agreed to purchase the company, Sky had more than $17.6 billion in assets and approximately 4,330 employees. It was identified as the 43rd-largest bank holding company in the United States at that time, a marked increase from its position immediately after the 1998 combination. On December 20, 2006, Huntington Bancshares announced that it would take over Sky Financial Group. Huntington was based in Columbus, Ohio, and the transaction was commonly described as a merger, although Huntington assumed the controlling role. The integration began in March 2007. Redundant offices and overlapping banking centers were consolidated, including the closure of major Sky operating centers in Bowling Green, Toledo, Cleveland, and East Liverpool. Eighty-eight banking centers, or approximately 25 percent of Sky's total network, were consolidated. The planned rationalization prompted concern about the consequences for communities served by both organizations. Former Ohio Congressman Dennis Kucinich asked the Federal Reserve Bank of Cleveland to conduct hearings about the transaction and its potential local effects. The Federal Reserve approved the merger despite that request. Huntington's withdrawal from some overlapping markets was discussed in relation to possible economic consequences for those communities. Following completion of the transaction in 2008, Sky Financial Group no longer operated as an independent company. Its banking operations became part of Huntington's larger regional network, while the Sky identity and corporate structure were retired.

• 2008

  Sky Financial Group is absorbed by Huntington

  [1]Sky Financial Groupen.wikipedia.org

  The Huntington transaction was completed, ending Sky Financial Group's existence as an independent company.

• 2007

  Integration and branch consolidation begin

  [1]Sky Financial Groupen.wikipedia.org

  Sky and Huntington began consolidating their operations, including the closure of several operating centers and the combination of 88 banking centers.

• 2006

  Huntington announces acquisition agreement

  [1]Sky Financial Groupen.wikipedia.org

  Huntington Bancshares announced on December 20 that it would acquire Sky Financial Group.

• 1998

  Sky Financial Group is formed

  [1]Sky Financial Groupen.wikipedia.org

  Mid Am, Inc. and Citizens Bancshares, Inc. completed a merger of equals, creating Sky Financial Group with approximately $4 billion in assets.

A Midwestern regional financial-services group combining commercial and retail banking with investment, trust, and insurance services.

• Retail banking

  Sky Bank retail banking

  Sky Bank operated a regional branch and ATM network serving consumer customers in several Midwestern states. Its retail banking activities formed the customer-facing core of the group and included branch-based financial services and deposit-oriented banking relationships.

• Commercial banking

  Sky Bank commercial banking

  The commercial banking business served companies and other organizational customers within Sky's regional footprint. It complemented the retail network and supported Sky's positioning as a full-service regional bank rather than a narrowly focused consumer institution.

• Financial services

  Investment, trust, and insurance services

  Sky Financial Group owned subsidiaries offering investment, trust, and insurance services. These businesses broadened the group's product mix beyond deposits and lending and allowed it to address additional wealth-management and risk-management needs.

• 2007

  Consolidate overlapping banking operationsStrategy

  Background

  The Huntington-Sky combination created overlapping offices and banking centers in several Midwestern markets.

  Action taken

  The combined organization closed major operating centers in Bowling Green, Toledo, Cleveland, and East Liverpool and consolidated 88 banking centers.

  Aftermath

  The consolidation reduced Sky's former physical footprint and generated public concern about the transaction's effects on local communities and economic activity.

  Source

• 2006

  Accept Huntington Bancshares acquisitionM&A

  Background

  After years of expansion through fourteen acquisitions and mergers, Sky Financial Group agreed to combine with Huntington Bancshares, creating a larger regional banking organization.

  Action taken

  Sky announced on December 20 that Huntington would take over the company in a transaction presented as a merger, with Huntington retaining control.

  Aftermath

  Integration began in 2007 and ultimately ended Sky's independent corporate and brand identity in 2008.

  Source

1. 1Sky Financial Groupen.wikipedia.org