Midland-based Chemical Financial has agreed to acquire Troy-based Talmer Bancorp in a cash-stock deal worth about $1.1bn.
As per the agreed terms of the deal, Talmer Bank and Trust, a subsidiary of Talmer Bancorp, will be merged into Chemical Bank, a subsidiary of Chemical Financial. The merged group will operate under the Chemical Bank name.
The merged entity will manage about $16bn in assets, $12bn in loans and $13bn in deposits, and will operate with 266 locations mainly in Michigan and northeast Ohio based on the companies balance sheets as of 31 December 2015.
The combined entity, comprising Chemical’s 185 and Talmer’s 51 Michigan locations, will create the state’s third largest branch delivery system.
The integration will also introduce the Chemical brand to the southeast Michigan, where it will operate with 31 branches, and northern Ohio, where it will operate with 27 branches.
Subject to regulatory approvals, the transaction is scheduled to close in the second half of 2016.
Following completion of the deal, five members of the Talmer board of directors will join Chemical’s board.
Chemical Financial chairman, CEO and president David Ramaker said: "Through this partnership, we will make a marked entry into the southeast Michigan market, and expand for the first time beyond our State’s borders. While Talmer’s operations across Michigan clearly support our goal of being "Michigan’s Community Bank," its operations in Northern Ohio and other contiguous states should position us well for future growth in those markets in the years ahead.
"We expect complementary strengths in specialty business lines such as wealth management and mortgage banking will lead to organic growth opportunities across the newly expanded franchise."