Independent Bank Corporation (IBCP), the parent company of Independent Bank, and TCSB Bancorp, Inc. (TCSB), the parent company of Traverse City State Bank, announced the signing of a merger agreement pursuant to which IBCP will be acquiring TCSB.
Subject to the terms of the merger agreement, which has been unanimously approved by the board of directors of each company, TCSB shareholders will receive 1.1166 shares of IBCP common stock for each outstanding share of TCSB common stock or 2.71 million shares of IBCP common stock in the aggregate. The 169,800 outstanding options to acquire TCSB common stock will be converted into IBCP options at the completion of the merger. The transaction is valued at approximately $63.24 million based on IBCP’s 15-day volume weighted average price of $22.4438 as of December 1, 2017, which is equal to 206.4% of TCSB tangible book value as of September 30, 2017. After the closing, IBCP intends to consolidate Traverse City State Bank with and into Independent Bank, operate under the Independent Bank name and maintain all five branch locations.
TCSB Bancorp, Inc. is a Michigan-based bank holding company with total assets of approximately $350 million. Founded in 2000, TCSB is the parent company of Traverse City State Bank and provides a full array of banking services through five full-service branches in the Traverse City area.
In connection with the merger, Warner Norcross & Judd LLP acted as legal counsel to TCSB, and D.A. Davidson & Co. acted as TCSB’s financial advisor.
The Warner Norcross transaction team was led by Charlie Goode and included the following attorneys: Jason Byrne, Emily Cantor, Sean Cook, Angelyn Justian, Jonathan Kok, Norbert Kugele, Gordon Lewis, Heidi Lyon, Rodney Martin, Ryan Richter and Corinne Sprague.