Magazine article American Banker

A Michigan Merger Partner Decides What It Really Wanted Was Independence

Magazine article American Banker

A Michigan Merger Partner Decides What It Really Wanted Was Independence

Article excerpt

Two Michigan community banks scuttled a $13.5 million merger deal after the smaller one decided it wanted to remain independent.

Ionia-based Independent Bank Corp. and Thumb National Bank and Trust Co., Pigeon, Mich., said in a press release they "had been unable to agree on certain material terms of the proposed transaction."

But Paul Clabuesch, president and chief executive of Thumb National, said there were no due diligence issues, personality conflicts, or lack of authority for him in his new position.

"I just said I'd rather be a community banker than a corporate banker," he said in an interview.

Independent president Charles C. Van Loan declined to elaborate on why the deal fell apart.

Tony Howard, a bank analyst at First of Michigan Corp., Detroit, said he was surprised the deal had unraveled. "Typically, for a smaller bank, it's a done deal" by the time a letter of intent is signed, he said.

The companies executed a letter of intent in mid-December, in which $516 million-asset Independent would have acquired $99 million-asset Thumb National, named for the thumb-shaped region in the eastern part of Michigan's lower peninsula.

Thumb National would have become part of Independent Bank East Michigan.

Mr. Van Loan said Independent is "always looking for opportunities for banking organizations to join us."

Mr. Clabuesch, on the other hand, said Thumb National would not entertain other acquisition offers. "We're going to remain independent and form a one-bank holding company," he said. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.