Independent Bank Corp. said it has cleared a major regulatory hurdle in its planned acquisition of HCB Financial Corp. and its subsidiary Highpoint Community Bank.
The deal, announced March 18, has now been approved by both the Federal Reserve Bank of Chicago and the Michigan Department of Insurance and Financial Services. HCB shareholders are scheduled to vote on June 17. If shareholders approve and remaining closing conditions are met, the merger is expected to become effective July 1.
Independent Bank said it has about $5.5 billion in assets and operates 59 locations across Michigan’s lower peninsula. HCB brings about $590 million in assets, $532 million in deposits, and $354 million in loans through seven branch locations.
The size gap between the two firms is substantial: Independent Bank’s assets are roughly 9 times larger than HCB’s, while HCB’s deposits represent about 10% of Independent Bank’s asset base. The transaction would add Highpoint’s seven branches to Independent Bank’s existing 59-location network. The market has reacted to these announcements by moving the company's shares 0.42% to a price of $35.47. For more information, read the company's full 8-K submission here.
