Independent Bank Corporation (IBC) announced Monday it is acquiring Traverse City State Bank.

According to a press release announcing the news, Traverse City State Bank will be consolidated into the IBC family and operate under the Independent Bank name, along with four other branch locations. At least two senior leaders of Traverse City State Bank - CEO Connie Deneweth and President and CFO Ann Bollinger - will continue on under the reorganization.

In a statement, Deneweth said: "We are very excited to join the Independent Bank family. We share a commitment to community banking, valuing our employees and serving our customers. This combination significantly enhances our capabilities including, larger lending limits, an expanded loan and deposit product mix, and more automated services. We believe this partnership is in the best interests of our customers and shareholders."

Brad Kessel, president and CEO of IBC, said the deal would strengthen his company's current franchise and support its "growth in the attractive Traverse City market with full-service banking through five locations."

"We are excited to welcome the Traverse City State Bank team and together create an even stronger bank for the Michigan communities that we serve," Kessel said. "We are pleased that Connie Deneweth will continue to lead the northern Michigan market. She is a respected business leader in the Traverse City area who will make a positive contribution to our organization. In addition, Ann Bollinger will lead the development of our wealth management services in Northern Michigan. Connie and Ann have built an exceptional bank with a strong foundation.”

The deal is expected to close in the first part of 2018. Subject to the merger terms, which were unanimously approved by both companies' boards, Traverse City State Bank shareholders will receive 1.1166 shares of IBC common stock for each outstanding share of TCSB common stock, or 2.71 million shares of IBCP common stock in the aggregate. The transaction is valued at approximately $63.24 million, or 206.4 percent of Traverse City State Bank's tangible book value as of September 30.