Shareholders at Talmer Bancorp Inc. today overwhelmingly backed a proposed $1.4 billion merger with Chemical Financial Corp.
More than 99 percent of the shares in the Troy-based Talmer Bancorp (Nasdaq: TLMR) were cast in favor of the merger, which would create the largest bank based in Michigan. Once the deal closes, the Midland-based Chemical Financial (Nasdaq: CHFC) would have more than $16 billion in assets and 266 offices, mostly in Michigan and northeast Ohio.
The deal remains subject to approval by state and federal regulators, plus Chemical Financial shareholders who are scheduled to vote on the proposal next week. Under terms of the deal, Talmer Bancorp shareholders would receive $1.61 in cash and 0.4725 shares of Chemical Financial stock for each of their shares.
“We are pleased that Talmer Bancorp shareholders supported the board with such overwhelming approval, and recognized this merger as a win-win,” Talmer Chairman and CEO David Provost said in a statement.
In West Michigan, Talmer Bank & Trust branches are in Grand Rapids, Portage, Holland, Muskegon and Grand Haven from when it bought the assets of the former Michigan Commerce Bank in early 2014 from the bankrupt Capital Bancorp in Lansing. The Grand Haven office for Talmer is located just two blocks from a Chemical Bank branch.
The merger would give Chemical Financial an instant presence in Southeast Michigan for the first time. In recent years, Chemical has grown through a series of acquisitions.
Talmer, facing limited growth prospects within its existing footprint, especially a highly competitive market in Southeast Michigan, in turn would become part of a growing institution that’s positioned statewide, said Greg Roberts, a partner at advisory firm Van Conway & Partners in Birmingham.
“I think the deal is a pretty good deal. The footprint overlays nicely,” Roberts said. “It makes a ton of sense.”