It looks like there will be a few more institutions bearing the
Chemical Bank name in Northeast Michigan and Battle Creek areas--21 of them to be exact.
Chemical Bank, which is owned by Chemical Financial Corp., announced that it has entered into an agreement to purchase 21 branches from Independent Bank of Ionia, Mich.
"This transaction is not only reflective of our commitment to Michigan, but also serves the long-term interests of Chemical Financial's shareholders," says David Ramaker, chairman, CEO and president of Chemical Financial. "In keeping with our established track record of successful acquisitive growth, Chemical Financial has levered its financial strength and market position to make our second strategic acquisition in the past three years. Acquiring these branches continues to expand our footprint into new markets and provides us with an excellent opportunity to grow top line revenue through our core strategy of community banking. We are excited about servicing the customers and communities associated with these branches."
Chemical Bank will acquire the 21 branch offices, assume approximately $420 million in customer deposits and acquire approximately $40 million of loans. Chemical Bank estimates to pay a deposit premium of 2.93 percent of deposits and acquire the loans at a 1.75 percent discount.
The 21 branches are located in Otsego, Alpena, Presque Isle, Montmorency, Roscommon, Iosco, Ogemaw, Calhoun and Kalamazoo counties. The acquisition is expected to close in the third quarter of 2012.
Writer: Sam Eggleston
Source: David Ramaker, Chemical Financial
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