Hancock-Based Keweenaw Financial Corp., the parent company of Superior National Bank and Trust has agreed to pay $42 million to buy North Star Financial Holdings, Inc. and its Main Street Bank. The deal is expected to close in the first quarter of 2020, subject to regulatory approval.
The boards of both companies have approved the deal.
Bingham Farms-based Main Street, founded in 2005, operates six locations, including two retail branches, three mortgage loan offices, and one commercial loan office serving southeast Michigan.
The combined bank will have assets of more than $800 million, with 11 bank branches and four loan origination offices in Michigan's Upper Peninsula and southeast Michigan.
"This acquisition brings two strong banking teams together and gives us greater capacity to invest in better products and services for our customers," Superior National CEO Dave Vlahos said in a statement. "We're expanding our geography and service area as well as enhancing our team with a larger suite of banking products and tools to better serve customers."
The banks said they do not expect any immediate changes to locations or service lines as a result of the deal.
"We look forward to working together in expanding our combined reach throughout Michigan," Main Street CEO Jeff Kopelman said. "We are excited about the opportunities Superior National brings to our customers, our staff and the local communities we serve."
The combined bank will be based in Hancock. Superior National's board will remain in place.