The merger is expected to strengthen Independent’s presence between Grand Rapids and Lansing while combining two community-focused banking franchises.

Grand Rapids-based Independent Bank Corporation and HCB Financial Corp. announced Wednesday that they had entered into a definitive agreement to merge in a transaction valued at approximately $70.2 million, a deal that will expand Independent’s footprint across a key growth corridor in central Michigan.

The combined organization, based on financial data as of the end of 2025, will hold roughly $6.1 billion in assets, $5.3 billion in deposits and $4.7 billion in loans. The acquisition brings Hastings-based Highpoint Community Bank’s seven locations into Independent’s existing network of 59 branches, effectively linking its operations between Grand Rapids and Lansing while supporting planned expansion into southwest Michigan.

“This partnership is a perfect fit both geographically and culturally,” said Brad Kessel, president and chief executive of Independent Bank Corporation. “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.”

The transaction reflects a broader strategy by Independent to compete with larger regional and national banks by emphasizing a high-touch, community-oriented approach while scaling its balance sheet and capabilities.

Highpoint, the banking subsidiary of HCB Financial Corp., brings a deposit base characterized by relatively low funding costs and a loan-to-deposit ratio of 67%, factors that Independent executives say will provide additional liquidity to support future lending growth. The deal also offers Highpoint customers access to a broader suite of products and higher lending limits.

“Joining forces with Independent Bank represents an exciting new chapter for our organization,” said Mark Kolanowski, president and chief executive of HCB Financial Corp. “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.”

Under the terms of the agreement, HCB shareholders will receive 1.590 shares of Independent common stock and $17.51 in cash for each share they own. Based on Independent’s closing stock price of $33.13 on March 17, the total consideration amounts to approximately $70.2 million.

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Independent said the transaction is expected to be about 6% accretive to earnings per share by 2027, assuming full realization of projected cost savings and synergies. The company anticipates a modest dilution to tangible book value at closing, with a projected earn-back period of roughly 3.4 years. Following the merger, Independent expects to maintain a strong capital position, including a common equity tier 1 ratio of about 11.5%.

The boards of both companies have unanimously approved the deal. One director from HCB will join the boards of both Independent Bank Corporation and its banking subsidiary upon completion, bringing each board to 11 members.

The transaction is expected to close early in the third quarter of 2026, subject to regulatory approvals, approval by HCB shareholders and other customary closing conditions.

The merger continues a steady pace of consolidation among community banks seeking scale, efficiency and broader capabilities while maintaining local decision-making. For Independent, the deal represents both a geographic and strategic bridge — linking key markets while reinforcing its emphasis on relationship-driven 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 & Chief Executive
HCB Financial Corp.