Midland-based Chemical Financial Corp.’s acquisition of Lake Michigan Financial Corp. was completed May 31, with Rich Lievense, former chair of Lake Michigan, now on the Chemical Financial board.
Lake Michigan Financial, based in Grand Rapids, was privately held and founded by Lievense in 1998. It owned The Bank of Holland, with banks in Holland, Grand Haven and Grand Rapids, and The Bank of Northern Michigan, with banks in Petoskey and Traverse City.
As of last September, LMFC had total assets of $1.2 billion. Chemical Financial paid $184 million in cash and common stock for LMFC.
Chemical also announced it has added Garth Deur to its organization as executive vice president, community banking. Deur had been president/CEO of Lake Michigan Financial.
The Bank of Holland and The Bank of Northern Michigan will be fully consolidated in the Chemical organization in the fourth quarter, after which they will operate under the Chemical Bank name.
The acquisition enhances Chemical’s presence “in some of Michigan's most attractive economic and demographic regions, including Grand Rapids, Holland, Grand Haven, Traverse City and Petoskey. We anticipate that this combination will facilitate continued organic growth at Chemical in the months and years ahead,” said David B. Ramaker, chairman, CEO and president of Chemical.
As of March 31, Chemical had $9 billion in consolidated assets, $6.8 billion in consolidated loans, and $7.5 billion in consolidated deposits, with 187 branches across the Lower Peninsula.
Chemical was advised by the investment banking firm of Keefe, Bruyette & Woods and the law firm of Warner Norcross & Judd LLP. Lake Michigan was advised by Sandler O'Neill & Partners LP and Varnum LLP.