The combined entity is set to have assets totalling £642m, 11 bank branches and four loan origination offices in Michigan’s Upper Peninsula and southeast Michigan
Keweenaw Financial, the parent company of Superior National Bank and Trust, has agreed to acquire North Star Financial and its subsidiary Main Street Bank for $42m (£33m).
Founded in 2005, Main Street Bank is headquartered in Bingham Farms, Michigan, with operations across six locations including two retail branches, three mortgage loan offices, and one commercial loan office. The bank has assets worth more than $280m (£224m).
Superior National Bank president and CEO Dave Vlahos said: “This acquisition brings two strong banking teams together and gives us greater capacity to invest in better products and services for our customers.
“We’re expanding our geography and service area as well as enhancing our team with a larger suite of banking products and tools to better serve customers. The long-term impact is smart, measured growth for Superior National, with continued high levels of customer satisfaction at the centre.”
After the deal is closed, the combined organisation is expected to boast assets worth more than $800m (£642m), with 11 bank branches and four loan origination offices in Michigan’s Upper Peninsula and southeast region.
Located at different regions in Michigan, Superior National Bank and Main Street Bank are touted to share the same culture, midwestern values and commitment to serving customers and communities.
The combined organisation is expected to offer new products and opportunities for its customers for an enhanced banking relationship.
The banks are expected to have larger lending capacity due to the overall size of the combined organisation.
Superior National Bank claims to bring Main Street Bank’s customers of residential mortgage division, greater options.
Main Street’s customers will also benefit from access to Superior National’s Trust and Financial services offerings.
The deal is expected to be closed early next year
Main Street Bank president and CEO Jeff Kopelman said: “This combination is a great fit for Main Street Bank and our customers. We look forward to working together in expanding our combined reach throughout Michigan.
“Our shared history as Michigan-based, locally focused community banks was a critical piece of our board’s decision to approve the acquisition. We are excited about the opportunities Superior National brings to our customers, our staff and the local communities we serve.”
The boards of directors of both the organisations have approved the acquisition and the deal is expected to be closed in the first quarter of next year after customary conditions and regulatory approvals are secured.
Superior National Bank said that the deal is not expected to have any immediate changes to the locations and services and the combined company will focus on growth because of the expanded service area, broader banking products and increased lending limits.