Northwest Bank being sold to Chemical Bank

Traverse City-based Northwestern Bank is being bought out by Midland-based Chemical Bank for $120 million.

Northwestern Bank has 25 branches in 11 northwestern Michigan counties, including Mason County branches in downtown Ludington and Amber Township and a branch in Manistee.

“Given the similarity in our community-based approaches to meeting Michigan’s banking needs, Chemical was the clear choice as Northwestern’s go-forward partner,” said Daniel Terpsma, president and chief executive officer of Northwestern Bank. “Chemical’s proven strategy of customer-centric, community banking coupled with its commitment to Michigan and its people, clearly aligns with our vision, values and mission. We believe that our employees, customers and the communities we serve will benefit greatly from the strength, depth and growth prospects that Chemical brings to this region”

A press release from Chemical Bank states that the bank anticipates it will become the eighth largest banking institution in Michigan, based on deposit market share.

The merger is expected to take place sometime this summer. After that time, the bank will be known only as Chemical Bank.

The press release also stated that Chemical Bank is likely going to close four branches in three communities where Chemical and Northwestern Bank have overlapping locations.