Bank of Holland merges with Chemical Financial Corp.

Bank of Holland will soon have a new name.

The bank was one of five firms wrapped up in an agreement between Midland-based Chemical Financial Corp. and Lake Michigan Financial Corp.

Bank of Holland and the Bank of Northern Michigan will operate under the Chemical Bank name later this year, according to an announcement made Tuesday, Jan. 6.

Chemical Financial is the holding company for Chemical Bank while Lake Michigan Financial has five branches across four counties in West and northwest Michigan, including Bank of Holland. Two metropolitan statistical areas where Lake Michigan Financial has branch locations, Grand Rapids and Traverse City, are projected to be the state's fastest and third-fastest growing MSA populations, respectively, based on data per SNL Financial, the announcement said.

Subject to customary closing conditions, including approval of Lake Michigan Financial shareholders, the transaction is anticipated to close in the second half of 2015, the statement said. After the closing, Chemical intends to consolidate the Bank of Holland and the Bank of Northern Michigan with and into Chemical Bank, and operate under the Chemical Bank name. One member of the Lake Michigan Financial board of directors will join Chemical's board upon completion of the transaction.

Under the terms of the definitive agreement, Chemical will acquire all of the outstanding shares of Lake Michigan Financial's common stock for cash and common stock in a transaction worth approximately $184.1 million, or $55.72 per share, based on the 30-day volume weighted price of Chemical of $29.47 per share as of Jan, 2, according to the statement from Chemical. Lake Michigan Financial shareholders will receive 1.326 shares of Chemical common stock and $16.64 per share in cash for each share of Lake Michigan Financial common stock owned.

Chemical expects net cost savings to reach an annual run rate of approximately $11 million and to be fully achieved within six months of closing. Pre-tax acquisition-related and integration costs associated with the transaction are expected to total $15 million, the statement said.

"We have long admired Rich Lievense, Garth Deur and the talented Lake Michigan Financial team,” Chemical Chairman, President and CEO David B. Ramaker said in the statement.

Lake Michigan Financial Corp. President and CEO Garth Deur agreed the two institutions have similar values saying, "We are truly pleased with the opportunity to join the Chemical family. This partnership pairs two like-minded companies that have consistent core community banking philosophies and cultures.”

The partnership will increase Chemical’s presence in Michigan’s most attractive economic and demographic regions, including Grand Rapids, Holland, Traverse City and Petoskey, Ramaker said.

For more information about the merger, go to https://chemicalbankmi.com/about/news-and-events/.

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