Independent Bank Corporation Announces Definitive Agreement For Sale Of Branches

Independent Bank Corporation

today announced that its subsidiary bank, Independent Bank, has signed a definitive agreement to sell 21 of its branches to Chemical Bank, headquartered in Midland, Michigan. The branches to be sold include 6 branch locations in the Battle Creek market area and 15 branch locations in Northeast Michigan. It is expected that the transaction will result in the transfer of approximately $420 million of deposits to Chemical Bank in exchange for the payment of a deposit premium of approximately $12.4 million. This represents a deposit premium of approximately 3.1% on identified core deposits. Certain non-core deposits will be transferred at no premium. Chemical Bank will also have the right to purchase certain loans originated at the branches being sold, at a discount of 1.75%. The sale is expected to be completed by the end of the third quarter of 2012, subject to customary regulatory approvals and the satisfaction of other customary terms and conditions of sale.