Chemical Financial (CHFC) to Acquire 21 Branches from Independent Bank Corp. (IBCP)
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Chemical Financial Corporation (Nasdaq: CHFC), announced today that its subsidiary Chemical Bank has entered into a definitive agreement to purchase 21 branches from Independent Bank, a subsidiary of Independent Bank Corporation, Ionia, MI (Nasdaq: IBCP). The subject branches are located in Northeast Michigan and Battle Creek.
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% of deposits and acquire the loans at a 1.75% discount. Chemical Financial expects the transaction to be immediately accretive to earnings per share, before estimated one-time transaction related expenses of $2.3 million. Chemical Financial anticipates recognizing goodwill of approximately $7 million related to the transaction.
The 21 branches are located in Otsego, Alpena, Presque Isle, Montmorency, Roscommon, Iosco, Ogemaw, Calhoun and Kalamazoo counties. The acquisition, which is subject to normal regulatory approvals, is expected to close in the third quarter of 2012.
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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% of deposits and acquire the loans at a 1.75% discount. Chemical Financial expects the transaction to be immediately accretive to earnings per share, before estimated one-time transaction related expenses of $2.3 million. Chemical Financial anticipates recognizing goodwill of approximately $7 million related to the transaction.
The 21 branches are located in Otsego, Alpena, Presque Isle, Montmorency, Roscommon, Iosco, Ogemaw, Calhoun and Kalamazoo counties. The acquisition, which is subject to normal regulatory approvals, is expected to close in the third quarter of 2012.
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