Bank making $63M acquisition
A bank in the region has announced it will acquire a bank in northern Michigan with assets of $350 million.
Ionia-based Independent Bank Corporation (Nasdaq: IBCP), the parent company of Independent Bank, which has multiple West Michigan locations, said yesterday it signed a definitive merger agreement to acquire Traverse City State Bank, or TCSB, based in Traverse City.
The transaction, valued at about $63.24 million, is expected to close in the first half of 2018, pending assent from TCSB, shareholders, regulatory approvals and other customary closing conditions.
Merger transaction and integration-related costs are expected to be about $3.4 million pre-tax.
“The transaction with TCSB will strengthen our current franchise and support our growth in the attractive Traverse City market with full-service banking through five locations,” said Brad Kessel, president and CEO, Independent Bank Corporation.
TCSB shareholders will receive 1.1166 shares of IBCP common stock for each outstanding share of TCSB common stock, or 2.71-million shares of IBCP common stock in the aggregate. The 169,800 outstanding options to acquire TCSB common stock will be converted into IBCP options at the completion of the merger.
After the deal closes, IBCP will consolidate Traverse City State Bank into Independent Bank, operate under the Independent Bank name and maintain all five northern Michigan branch locations.
One member of the TCSB board of directors will join IBCP’s board upon completion of the transaction.
Connie Deneweth, CEO of TCSB, will continue to lead the northern Michigan market.
Ann Bollinger, TCSB president and CFO, will lead the development of all wealth management services in northern Michigan.
“This combination significantly enhances our capabilities, including larger lending limits, an expanded loan and deposit product mix and more automated services,” Deneweth said. “We believe this partnership is in the best interests of our customers and shareholders.”
ProBank Austin acted as IBCP’s financial advisor, and Varnum acted as legal counsel to IBCP.
D.A. Davidson & Co. acted as TCSB’s financial advisor, and Warner Norcross & Judd acted as legal counsel to TCSB.
Founded as First National Bank of Ionia in 1864, Independent Bank Corporation is a bank holding company with total assets of about $2.8 billion.
IBCP operates a branch network across Michigan's Lower Peninsula through one state-chartered bank subsidiary.
The subsidiary, Independent Bank, provides commercial banking, mortgage lending, investments and insurance services.
TCSB Bancorp, Inc. is a bank holding company with total assets of about $350 million.
Founded in 2000, TCSB is the parent company of Traverse City State Bank and provides a full array of banking services through five branches in the Traverse City area.