Some branch deals come with added value.
A case in point is the $2 billion-asset Old Second Bancorp's agreement to buy a branch in Chicago from Talmer Bancorp in Troy, Mich., in a deal that includes deposits, assets and a vice chairman.
Old Second, of Aurora, Ill., said in a press release Monday that the deal includes Gary Collins, Talmer's vice chairman. After the deal closes in the fourth quarter, Collins is expected to join Old Second as vice chairman and a director.
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Chemical Financial in Midland, Mich., has agreed to buy Talmer Bancorp in Troy, Mich.
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Talmer agreed to sell itself in a privately negotiated deal that values the company at 150% of its tangible book value. For some analysts and investors, the company should have considered an auction or not selling at all.
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The company knew it would soon expand outside of Michigan, but management thought it might buy a $2 billion-asset bank based in Indiana. Talmer Bancorp was much bigger than that and it instead offered opportunity in Ohio.
January 28
Talmer is in the process of
Collins has been vice chairman of the $6.7 billion-asset Talmer since 2011.
Old Second said its branch deal with Talmer includes $82 million in deposits and $238 million in loans. The price was not disclosed. Old Second said it also plans to appoint Hugh McLean, president of Talmer's Illinois region, as a director of its bank.
Collins and McLean "bring a wealth of experience to our management team," James Eccher, Old Second's president and chief executive, said in the release.
Barack Ferrazzano Kirschbaum & Nagelberg was Old Second's legal adviser.
