That $1.4-billion acquisition of Talmer Bancorp by Chemical Financial Corporation has cleared a major regulatory hurdle this week with announcement on Monday from the Federal Reserve Board that the deal has been green-lighted from their point of view. With that check point completed, the transaction will likely proceed to a scheduled fall closing without any hitch.
The Federal Reserve Board met on Monday and put their stamp of approval on the deal which would create the largest bank headquartered in Michigan with $16-billion in assets. Additionally, the merged institutions would result in a bank with $12.8-billion in total deposits and roughly 5.7-percent of the statewide deposit market, earning a rank of third in all of Michigan.
The Federal Reserve says that the combined entities would result in the 87th largest depository organization in the United States. Chemical alone is the 126th largest such organization and Talmer is the 169th largest.
In its approval order, the Federal Reserve characterized Chemical as "well capitalized and well managed," and said that the bank has "an outstanding Community Reinvestment Act of 1977 rating."
Chemical Financial Chairman & CEO David Ramaker told investors in a recent conference call on quarterly results that the deal is expected to close either late in the third quarter or early in the fourth, with names being changed on Talmer bank properties to the Chemical Bank brand in mid-November.
The merger will result in a total of roughly 260 offices largely in Michigan and Ohio, with a couple in Illinois, Indiana and Nevada.
