First Place Financial Corp. in Warren, Ohio, announced Monday that it has agreed to buy seven branches in Michigan from Republic Bancorp Inc., which is selling them as a condition of its pending merger with Citizens Banking Corp.
The acquisition would nearly double First Place's branch network in Michigan and give the $3 billion-asset company an additional $210 million of deposits and $30 million of consumer loans. The branches are to be converted to branches of Franklin Bank of Southfield, Mich.
Citizens, of Flint, Mich., and Republic, of Ann Arbor, Mich., also announced Monday that they plan to close 18 overlapping branches by the end of the second quarter.
Citizens announced in June that it was buying Republic for $1.05 billion. The deal, billed as a merger of equals, would create a $14 billion-asset company, to be called Citizens Republic Bancorp, with branches in Michigan, Wisconsin, Iowa, and Ohio.
The Federal Reserve System's board of governors ordered the branch divestitures. The combined company would have about 245 branches after it sells and closes the 25 branches.
First Place would be getting four branches in Flint, one in Flint Township, one in Flushing, and one in Davison. It said it would pay $10.5 million for the deposits, which works out to a 5% premium.
Steven R. Lewis, First Place's chief executive officer, said his company would focus on loan and deposit growth in the new Michigan branches.
"I will look forward to a friendly, competitive relationship with these guys," Mr. Lewis said of the combined Citizens and Republic.
The branch deal is expected to close in the second quarter. The Citizens-Republic deal is expected to close Dec. 29.
