First Michigan Bank Acquires Assets and Deposits of Peoples State Bank From the FDIC

TROY, Mich., Feb. 11, 2011 /PRNewswire/ -- First Michigan Bank, a wholly owned subsidiary of First Michigan Bancorp, Inc., announced today that it has assumed all of the deposits and substantially all of the assets of Peoples State Bank, a full-service bank with 10 branches operating in Southeast Michigan. In order to protect depositors, the Michigan Office of Financial and Insurance Regulation closed Peoples State Bank and appointed the Federal Deposit Insurance Corporation ("FDIC") receiver. Subsequently, First Michigan Bank entered into a definitive agreement with the FDIC to assume the deposits and assets of the failed bank. As of December 31, 2010, Peoples State Bank had $389.5 million in assets and $389.9 million in deposits.

The former Peoples State Bank branch locations will reopen during normal business hours beginning Saturday, February 12, 2011, as First Michigan Bank branches. Peoples State Bank depositors 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. Peoples State Bank customers should continue to bank as usual.

"Our top priority is to assure all customers that their deposits are safe and remain readily available to them. We are excited to bring Peoples State Bank customers and employees into our banking family," said David T. Provost, chairman, president, and chief executive officer of First Michigan Bank. "Our mission as a community bank is to continue to provide our customers and communities with localized, highly personalized service and enhanced products so that they, in turn, can achieve their financial goals."

"Customers should know that it will be business as usual for them," Provost continued. "Banking hours will remain the same. They will handle their banking business at their existing banking offices with the same friendly, local employees that they have come to know. They can rest assured that their deposits remain insured up to the maximum coverage allowed under the FDIC. We will continue to communicate details to all of our stakeholders, 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) 450-5143. The phone number will be operational this evening until 9:00 p.m.; on Saturday, February 12, from 9:00 a.m. to 6:00 p.m.; on Sunday, February 13, 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/peoplesstatebank.html

About First Michigan Bancorp, Inc.

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 with 40 locations in Michigan and Wisconsin 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