Keweenaw Financial Corp. in Hancock Mich. (just north of Houghton in the Upper Peninsula), the parent company of Superior National Bank and Trust with assets of more than $575 million, has announced it will acquire North Star Financial Holdings Inc. in Bingham Farms and its subsidiary Main Street Bank with assets of more than $280 million.
The transaction is expected to close in the first quarter of 2020. North Star Financial shareholders will receive $42 million in cash for consideration.
Main Street was founded in 2005. It operates six locations, including two retail branches, three mortgage loan offices, and one commercial loan office. The combined organization has 11 bank branches and four loan origination offices in the Upper Peninsula and southeast Michigan.
Superior will add Main Street’s residential mortgage division, Main Street will add Superior’s trust and financial services offerings, and the banks will have a larger lending capacity because of the overall size of the combined organization.
“This acquisition brings two strong banking teams together and gives us greater capacity to invest in better products and services for our customers,” says Dave Vlahos, president and CEO of Superior. “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 center.”
There will be no immediate changes to locations or service lines as a result of the acquisition. The company plans to grow the combined organization, which will be headquartered in Hancock.
“This combination is a great fit for Main Street Bank and our customers,” says Jeff Kopelman, president and CEO of Main Street. “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.”
Superior was advised by Charter Capital Partners, Olejniczak Advisors, John Hecht Consulting, and the law firm for Warner Norcross and Judd LLP. ProBank Austin issued a fairness opinion as part of the transaction. Main Street was advised by McQueen Financial Advisors and the law firms of Kus Ryan and Associates PLLC and Seyburn Kahn PC.
Keweenaw and Superior were established in 1890 and provide personal and commercial banking services. It has nine retail branches across the western Upper Peninsula. North Star and Main Street are also providers of personal and commercial banking.