Chemical Bank Relocates HQ To Detroit

Chemical Financial Corporation CHFC, the largest Michigan-based bank, announced plans Wednesday to relocate its headquarters to a new tower to be constructed in downtown Detroit.

What Happened 

The city of Detroit announced that Chemical Bank will be its new primary banking partner in concert with First Independence Bank for management of the municipality's deposits, which total as much as $500 million.

Chemical said it will maintain its more than 500-person workforce in the mid-Michigan city of Midland despite the redomiciling. Midland is also home to Dow DuPont Inc DWDP's headquarters. 

Why It’s Important

Chemical replaces Comerica Incorporated CMA as Detroit's main banking partner. Comerica relocated its headquarters from Detroit to Dallas in 2007; the city's new banking partners "were chosen in part because of their strong commitments to Detroit," the city said in a Wednesday press release. 

"Detroit is the financial hub for advanced manufacturing and mobility as well as a growing nexus for young entrepreneurs looking to leverage the city's rich history of innovation and hard work, and Chemical Bank is excited to help them build our economy and invest in Michigan's future," Chemical Bank President and CEO Thomas Shafer said in a statement.

"With our legacy markets as our foundation, Chemical Bank's continued expansion into the Detroit market establishes us as a leading financial institution in the Midwest."

What’s Next

Chemical said it plans to first expand its Detroit presence at a Fort Street office it presently operates.

Once construction is finished on the new 20-story tower at the corner of Woodward Avenue and Elizabeth Street, over 500 employees will be moved there, according to Chemical Bank. 

"Chemical Bank is a great banking partner for the city's finances and a great community partner, now headquartered in the city of Detroit," Mayor Mike Duggan said in a statement. "I am very excited to welcome Detroit's new hometown bank."

Related Links:

Detroit's Bankruptcy 5 Years Later: 'There's A Chance Here To Create A New Paradigm'

Ford Motor Buys Michigan Central Station: 'It's Time To Remake This Into A Place Of Possibility Again'