Thumb Bancorp in Pigeon, Mich., has agreed to buy Exchange State Bank in Carsonville, Mich.
The $401 million-asset Thumb said in a press release that it will pay $29.9 million in cash and stock for the $219 million-asset Exchange Bank. The merger is expected to close late this year or in early 2023.
The final consideration is subject to adjustment based on unrealized losses in Exchange’s investment portfolio at closing and potential expenses tied to ending the seller’s employee defined benefit plan.
Thumb will convert from an S-Corp to a C-Corp as part of the transaction.
“This is a unique opportunity to combine with another community bank with a very similar business model and culture,” Ben Schott, Thumb’s president and CEO, said in the release.
Exchange and Thumb share a strong focus and commitment to community development and customers, further signifying they are the right partner for us,” Schott added.
Kelly Gerstenberger, Exchange’s president and CEO, will join Thumb as a senior officer. Four Exchange directors will join Thumb’s board.