Michigan Ag Connection - Superior National Acquires Main Street Bank of Bingham Farms

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Superior National Acquires Main Street Bank of Bingham Farms
Michigan Ag Connection - 09/20/2019

Keweenaw Financial Corp., the parent company of Superior National Bank and Trust with assets over $575 million, announced a definitive agreement to purchase North Star Financial Holdings, Inc. and its subsidiary Main Street Bank with assets over $280 million. The transaction is expected to close in the first quarter of 2020, subject to satisfaction of customary closing conditions, including receipt of regulatory approvals. North Star Financial Holdings, Inc. shareholders will receive $42 million in cash for consideration. The board of directors for both organizations have approved the acquisition.

Main Street was founded in 2005 with headquarters in Bingham Farms and operates six locations, including two retail branches, three mortgage loan offices, and one commercial loan office serving southeast Michigan. The combined organization boasts assets over $800 million, 11 bank branches and four loan origination offices in Michigan's Upper Peninsula and southeast Michigan.

Located in geographically different regions of Michigan, Superior National Bank and Main Street Bank share the same culture, midwestern values and commitment to serving customers and communities. The combined organization will provide new products and opportunities for customers to enhance their banking relationship:

- Superior National Bank adds Main Street's excellent residential mortgage division, which gives customers in the Upper Peninsula greater mortgage options.

- The banks will have a larger lending capacity because of the overall size of the combined organization.

- Main Street customers will benefit from access to Superior National's Trust and Financial services offerings.

"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 National Bank. "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."

The combined organization expects no immediate changes to locations or service lines as a result of the acquisition. The company intends to focus on growing the combined organization as a result of its expanded service area, broader banking products and increased lending limits.

"This combination is a great fit for Main Street Bank and our customers. We look forward to working together in expanding our combined reach throughout Michigan," said Main Street Bank President and Chief Executive Officer Jeff Kopelman. "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 National Bank and Trust's 130-year history of financial stability, excellent customer service and locally based decision making will continue and be strengthened by this acquisition. We are proud of the careful due diligence performed, the strategic advantages we found, and the win-win outcome we expect, which will allow us to deliver an even better customer experience at every location in every market," Vlahos added. "Superior National and Main Street together, offers a more robust banking model that combines management and employee continuity, market knowledge and superior customer relationships with expanded financial products and services."

The combined organization's headquarters will remain in Hancock. Superior National's local board of directors will guide and govern the joint entity.

Superior National Bank and Trust was advised by Charter Capital Partners, Olejniczak Advisors, John Hecht Consulting and the law firm of Warner Norcross and Judd LLP. ProBank Austin issued a fairness opinion as part of the transaction. Main Street Bank was advised by McQueen Financial Advisors and the law firms of Kus Ryan & Associates PLLC and Seyburn Kahn, PC.

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