Michigan's Independent Bank Corp. said it has a deal to buy Mutual Savings Bank of Bay City, Mich., for $64 million in stock.

Independent, based in Ionia, is the parent of four banks, with 71 branches. The deal calls for Mutual Savings, which has $564 million of assets and 22 offices, to become a new commercial bank subsidiary of the acquirer.

"We believe their customer base, lending capacity, and branch network provide tremendous opportunities for the combined company," said Charles Van Loan, president and chief executive officer of Independent.

The price is 1.73 times Mutual Savings' book value, and 23.93 times earnings.

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