Independent Bank announced that it has entered into a definitive merger agreement to acquire HCB Financial Corp., the parent company of Highpoint Community Bank, in a cash and stock transaction valued at approximately $70.2 million.
The transaction brings together two Michigan-based community banking organizations and is expected to expand Independent Bank’s presence across a key growth corridor between Grand Rapids and Lansing. Following the merger, the combined company is projected to have approximately $6.1 billion in total assets, $5.3 billion in deposits, and $4.7 billion in loans based on year-end 2025 figures.
The deal is structured so that HCB shareholders will receive 1.590 shares of Independent Bank common stock plus $17.51 in cash for each share they hold. The transaction has been unanimously approved by the boards of both companies and is expected to close early in the third quarter of 2026, subject to regulatory approvals and shareholder approval from HCB.
Strategically, the acquisition is designed to strengthen Independent Bank’s market density, enhance its funding profile through HCB’s low-cost deposit base, and expand product offerings and lending capabilities for customers. The companies highlighted strong cultural alignment and compatible operating models, which are expected to support a smooth integration process.
Financially, the deal is expected to be approximately 6% accretive to Independent Bank’s earnings per share by 2027, with an estimated tangible book value dilution of about 4% at closing that is projected to be earned back in roughly 3.4 years. Independent Bank also expects to maintain a strong capital position post-transaction, including a projected CET1 ratio of about 11.5%.
As part of the agreement, one HCB director will join the boards of both Independent Bank Corporation and Independent Bank upon completion of the merger.
KEY QUOTES:
“We are thrilled to welcome the Highpoint Community Bank team and customers to Independent Bank. This partnership is a perfect fit both geographically and culturally. By combining Highpoint’s strong core deposit base and deep community roots with our expanded product set, we are better positioned to serve the families and businesses of Michigan while delivering meaningful value to our shareholders.”
Brad Kessel, President And CEO, Independent Bank Corporation
“Joining forces with Independent Bank represents an exciting new chapter for our organization. We have long respected Independent’s commitment to community banking. This merger strengthens our ability to serve customers with greater lending capacity and enhanced digital capabilities, while keeping our employees part of a Michigan-headquartered team rooted in and committed to our local communities.”
Mark Kolanowski, President And CEO, HCB Financial Corp.
