First Place Bank acquires 7 Republic branches

The company's growth in Michigan will continue, the bank president said.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
WARREN -- First Place Bank has doubled the size of its branch network in Michigan.
The Warren-based financial institution said Monday that it has acquired seven Republic Bank branches in and around Flint, Mich., that were being sold because of a merger between Republic and Citizens Banking Co.
"We're not done," said Steve Lewis, First Place president and chief executive.
"We want to continue to enhance our presence in southeast Michigan, and this is one step to do that."
First Place will take over 210 million in deposits from Republic and pay a 5 percent premium, or 10.5 million.
It will receive the seven branches, including three that are leased, and 30 million in loans.
The transaction is expected to close in the second quarter of next year.
Lewis said the deal will add to earnings immediately, if one-time charges for the acquisition and the integration of the company are excluded.
Lewis said he hopes the deal will add jobs in the Mahoning Valley.
As First Place expands its operations in other areas, it also needs more staff here to handle back-office support work, he said.
In this region, First Place has the equivalent of 500 full-time workers in its banking operations and the same number at its real estate, insurance and property title subsidiaries.
Part of Franklin Bank
The Republic branches being added are to become part of Franklin Bank, which is owned by First Place.
The Republic branches are about 45 minutes north of Southfield, Mich., which is the headquarters of Franklin.
Franklin already had a lending and mortgage office near the seven branches being acquired.
Lewis said First Place won a bidding process that was used, because the branches had to be sold so that the Citizens-Republic merger would be approved by government regulators.
The sale was needed so the merging banks would not violate government standards on having too much market share.
Lewis said he is encouraged by the success that First Place is having in Michigan.
When it acquired Franklin in May 2004, Franklin had 550 million in loans and five branches.
Now, it has 800 million in loans and seven branches and three loan offices.
Lewis credited the staff and its knowledge of the area for the success.
shilling@vindy.com