Chemical Financial Corp., the bank holding company with 144 offices in 32 of Michigan’s counties – where it is the third largest bank holding company by size – disclosed details today, Monday, May 03, 2010, regarding the Apr. 30 finalization of the Company’s acquisition of the O.A.K. Financial Corporation (OAK, the holding company for Byron Bank).
The close of the transaction sees CHFC standing with assets totaling $5.1B and loans to $4.2B, having issued some 3,530,129 of common stock to former OAK shareholders and converting to CHFC all outstanding OAK stock options (estimated fair value ~$100k); as of Mar. 31 Byron Bank had assets totaling $812M, with loans to $687M and $691M in deposits.
Projections indicate that the transaction will apply to CHFC’s 2011 earnings per share and 2010 operating results, minus an estimated $4.5M for acquisition-related costs ($0.7M in 1Q; $3M in 2Q and an additional $0.8M thereafter).
Advisors during the transaction for CHFC were investment banking specialists Keefe, Bruyette & Woods, and the legal services of Warner Norcross & Judd LLP, while OAK retained Donnelly Penman & Partners and law firm Varnum LLP.
Byron Bank locations (14 sites in Michigan’s Allegan, Kent and Ottawa counties) will maintain their title into late July this year, pending migration to CHFC’s data processing platform, after which time all sites will bear the Company’s name.
President, Chairman and CEO of CHFC, David B. Ramaker, welcomed the clientele of Byron Banks to the CHFC family and warmly acknowledged the value of Pat Gill and the experienced Byron Bank team, stating emphatically that the combination of these two Michigan powerhouses would “become a force in retaining and expanding current relationships, as well as forging new relationships”.
Ramaker indicated that, with this transaction, the Company is now well-positioned to grow its already strong footprint in the lucrative West Michigan market, as well as statewide, enhancing the competitiveness of the organization, its branch distribution system and especially its overall capacity with regard to penetration in the key Grand Rapids market; in addition, Ramaker indicated that the end result of bringing these two companies under one roof is better services and products to individual and institutional customers all across Michigan.