Independent Bank, Grand Rapids, Mich., and Traverse City State Bank, Traverse City, Mich., are combining. The transaction is anticipated to close in the first half of the year. After the closing, Traverse City State Bank will operate as Independent Bank and maintain all five of its branches. One member of Traverse City’s board of directors will join Independent’s upon completion of the transaction.
Connie Deneweth and Ann Bolinger, Traverse City’s CEO and CFO respectively, also will stay on board following the merger. Deneweth will lead the Northern Michigan market and Bolinger will lead the development of the bank’s wealth management services in Northern Michigan.
“Connie and Ann have built an exceptional bank with a strong foundation,” Brad Kessel, Independent’s president and CEO, said.
Kessel said Independent wasn’t the only bank Traverse City was looking at as a possible merger partner.
“It was a competitive situation and quite frankly [Independent’s CFO] Rob Shuster has a long standing professional relationship with Connie going back to their public accounting days,” Kessel said. “This past year Traverse City had made the decision by the board to seek a partner. And in that process, Rob and I began discussions.”
“Our board became increasingly concerned about the cost of compliance, cyber security, protection, potential overhead costs,” Deneweth said. “And we felt like a strong community bank and partner would be within the best interest of our shareholders as well as our employees and our customers.”
Deneweth said Independent will be gaining ground in a Northern Michigan market that is attractive in more ways than one.
“We have beautiful geography and a fabulous accumulation of lakes,” Deneweth said. “The agriculture market is strong. We have a very strong winery, beer-making industry. People are moving to Traverse City and keeping their jobs in Chicago.”
The $2.8 billion Independent was founded as First National Bank of Ionia in 1864. The $350 million Traverse was founded in 2000.