Given its performance and capital levels, Chemical Financial Corp. had long been thought of as a market consolidator in its home state of Michigan, but it remained on the sidelines — until now.

On Friday the $4.3 billion-asset Chemical, of Midland, announced a deal to buy the $840 million-asset O.A.K. Financial Corp. in Byron, Mich., for $83.9 million in stock, or 1.08 times O.A.K.'s tangible book value. O.A.K.'s Byron Bank would be merged with Chemical Bank, increasing Chemical's branch count in the Grand Rapids market from 14 to 31.

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