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Chemical Financial (CHFC) in Midland, Mich., managed to boost quarterly earnings with higher interest income and lower credit costs.
October 22 -
Nearly a year after calling off a stock sale that would have sharply diluted the value of its shares, Independent Bank in Ionia, Mich., said it would instead raise capital by selling off a batch of branches.
May 23
Chemical Financial (CHFC) has bulked up its branch network.
The $5.8 billion-asset holding company of Chemical Bank in Midland, Mich., said Monday it has completed its $8.1 million purchase of 21 branches from Independent Bank (IBCP) in Ionia, Mich.
The deal, which the companies
"This transaction, our second strategic acquisition in the past three years, is not only in keeping with our growth strategy, but reflective of our commitment to Michigan," David Ramaker, Chemical's chief executive, said in a news release. "Acquiring these branches, we believe, accretively expands our footprint into new markets and provides us with an excellent opportunity to grow top-line revenue through our core strategy of community banking."
The $2.4 billion-asset Independent said Monday it would record a net gain on the sale of roughly $5.4 million in the fourth quarter and an increase in Tier 1 capital of roughly $8 million. On a pro forma basis, as of Sept. 30, the deal is expected to boost Independent Bank's Tier 1 capital to 7.96% from 7.29% and its total risk-based capital to 14.31% from 13.22%, according to Independent, which continues to operate roughly 70 branches in Michigan.
