Independent Bank Corporation (IBCP), the parent company of Independent Bank, has agreed to acquire TCSB Bancorp, (TCSB), the parent company of Traverse City State Bank, for approximately $63.24m.
IBCP plans to integrate Traverse City State Bank with and into Independent Bank and operate it under the Independent Bank brand name and maintain all five branch locations.
Upon completion of the transaction, one member of the TCSB board of directors will join IBCP’s board.
IBCP estimates the acquisition and integration-related costs to be approximately $3.4m. It also expects the acquisition be approximately 3.8% and 6.7% accretive to first-year and second-year fully diluted earnings per share, respectively.
Independent Bank Corporation president and CEO Brad Kessel said: “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.
“We are excited to welcome the TCSB team and together create an even stronger bank for the Michigan communities that we serve. We are pleased that Connie Deneweth will continue to lead the Northern Michigan market.”
TCSB Bancorp CEO Connie Deneweth said: “We share a commitment to community banking, valuing our employees and serving our customers.
“This combination significantly enhances our capabilities including, larger lending limits, an expanded loan and deposit product mix, and more automated services. We believe this partnership is in the best interests of our customers and shareholders.”
The transaction is likely to be concluded during the first half of 2018, subject to the approval of TCSB shareholders and the receipt of regulatory approvals and satisfaction of other customary closing conditions.