TROY, Mich., April 30 /PRNewswire/ -- First Michigan Bank, a wholly owned subsidiary of First Michigan Bancorp, Inc., announced today that it acquired a substantial amount of the assets and substantially all of the deposits of CF Bancorp, headquartered in Port Huron, Michigan from the Federal Deposit Insurance Corporation (FDIC) as Receiver, following CF Bancorp's closure today, April 30, 2010. Pursuant to the terms of the Purchase and Assumption Agreement entered into with the FDIC, First Michigan Bank will assume approximately $1.1 billion in deposits. In addition, First Michigan Bank will operate all of CF Bancorp's branch offices, and acquire approximately $800 million in loans which are subject to a loss-share agreement with the FDIC as well as certain other assets. The acquisition also included CF Bancorp's investment services division and its trust services division.
The former CF Bancorp branch locations will reopen during normal business hours beginning Saturday, May 1, 2010, as branches of First Michigan Bank. CF Bancorp depositors will automatically become customers of First Michigan Bank and will have uninterrupted access to their funds, all of which will continue to be insured by the FDIC up to the FDIC's maximum limit. Former CF Bancorp customers should continue to bank as usual.
In order to provide sufficient capital to complete the acquisition of CF Bancorp's assets and assume its deposits from the FDIC as receiver, First Michigan Bancorp raised $200 million of new capital in a private placement transaction with its lead investor WL Ross & Co. LLC. Oppenheimer & Co. Inc. served as the sole placement agent in the transaction.
"Our top priority is to assure all customers that their deposits are safe and remain readily available to them. We are excited to have the former CF Bancorp customers and employees as part of the First Michigan Bank family," said David T. Provost, chairman, president, and chief executive officer of the Bank. "First Michigan Bank is a well-capitalized community banking institution and the management team has a rich history of providing highly personalized service to banking customers throughout Michigan."
Provost went on to say, "We are all committed to a strong Michigan and bright economic future led by a healthy and invigorated community bank with satisfied customers. We look forward to offering our loan products to the individuals, businesses and communities that we serve, and we expect to preserve jobs in the CF Bancorp network, which is critical in these challenging economic times."
"Former CF Bancorp customers should know that it will be business as usual for them. Banking hours will remain the same. They will handle their banking business at their existing banking offices with the same friendly employees that they have come to know. They can rest assured that all deposits are insured up to the maximum coverage allowed under the FDIC." Provost continued. "We will continue to communicate details as soon as they are available, and we will work hard to make certain the transition is as seamless as possible for our customers."
Customers who have questions about today's transaction can call the FDIC toll-free at (800) 895-3212. The phone number will be operational this evening until 9:00 p.m.; on Saturday, May 1, from 9:00 a.m. to 6:00 p.m.; on Sunday, May 2, from Noon to 6:00 p.m.; and thereafter from 8:00 a.m. to 8:00 p.m. Interested parties can also visit the FDIC's website at http://www.fdic.gov/bank/individual/failed/cfbancorp.html
About First Michigan Bancorp
First Michigan Bancorp, Inc. is a bank holding company headquartered in Troy, Michigan. Its wholly owned subsidiary, First Michigan Bank is a locally-operated financial institution that provides highly personalized financial services to individuals, professionals and their businesses. Long-term relationships are developed with clients by providing customized banking and investment solutions ideally suited to their evolving financial needs. Please visit our website at www.firstmichiganbank.com for additional information.
SOURCE First Michigan Bank