Pigeon, Mich.-based Thumb State Bank & Trust is buying Carsonville, Mich.-based Exchange State Bank.
The banks, both based in eastern Michigan, announced the signing of the agreement on Monday. The deal is expected to close either late this year or early in 2023.
Ben Schott, president and CEO of the $383 million Thumb Bank & Trust, will continue in his roles. Kelly Gerstenberger, Exchange State Bank president and CEO, will serve as a senior officer of Thumb Bank & Trust. Four Exchange directors will join Thumb’s board of directors.
“This is a unique opportunity to combine with another community bank with a very similar business model and culture,” Schott said. “Exchange and Thumb share a strong focus and commitment to community development and customers, further signifying they are the right partner for us.”
Each share of Exchange common stock will be exchanged for 0.5259 shares of Thumb common stock and approximately $20.67 per share in cash. Based on Exchange’s financial statements as of the end of the end June, the adjusted cash consideration per share is approximately $19.04. Exchange shareholders will own approximately 40 percent of the combined company on a pro forma basis.
Thumb State Bank and Trust was advised financially by ProBank Austin and legally by Shumaker Loop & Kendrick, LLP. Exchange State Bank was advised financially by Donnelly Penman & Partners and legally by Bodman, PLC.