Huntington Bancshares Inc. announced the signing of a definitive agreement to purchase Chicago-based Hutchinson, Shockey, Erley & Co. (HSE). A public finance investment bank and broker-dealer, HSE is one of the nation’s largest securities firms focused exclusively on municipal securities.

Financial terms of the agreement were not disclosed. The acquisition, subject to regulatory approval, is expected to be completed in the fourth quarter of 2018.

Founded in 1957, HSE serves 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. In addition to HSE’s underwriting capabilities, it maintains a robust trading and institutional sales platform.

“Hutchinson, Shockey, Erley and Co. is one of the premier municipal securities firms in the industry. They have an incredibly strong team of seasoned public finance professionals who average more than 26 years of experience. 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,” said Scott Kleinman, executive managing director, Huntington Capital Markets.

HSE and the management team will continue to be led by its CEO and industry veteran, Tom Dannenberg. The firm will continue to operate under the Hutchinson, Shockey, Erley and Co. brand and will continue to have its headquarters in Chicago. The firm’s operations are supported by 11 offices dispersed across nine states, which house its 51 employees. HSE will operate as a standalone broker-dealer working under Huntington Capital MarketsSM.

“The businesses and the cultures of Hutchinson, Shockey, Erley and Co. and Huntington are a tremendous fit. Both organizations are, above all, dedicated to doing the right thing for our customers,” Dannenberg said. “Huntington has been in operation for more than 150 years and our firm for more than 60 years. That longevity is a testament to our shared commitment to delivering a value-added superior customer experience for our clients. Joining forces with Huntington will yield clear benefits for both parties as we grow and expand capabilities to serve our clients.”

Keefe, Bruyette & Woods, Inc. acted as exclusive financial advisor to Hutchinson, Shockey, Erley & Co.