Independent Bank Corporation (NASDAQ:IBCP) ("Independent"), the parent company of Independent Bank, and HCB Financial Corp. (OTCPK: HCBN) ("HCB"), the parent company of Highpoint Community Bank, jointly announced today the execution of a definitive merger agreement under which HCB will merge with Independent in a cash and stock transaction valued at approximately $70.2 million, as detailed below.

The partnership combines two of Michigan's most people-focused and community-oriented franchises, strategically bolstering Independent's footprint in the high-growth corridor between Grand Rapids and Lansing. Based on financial data as of December 31, 2025, the combined organization will have approximately $6.1 billion in total assets, $5.3 billion in total deposits, and $4.7 billion in total loans.

Strategic Rationale

This transaction aligns with Independent's core strategy to provide a superior, high-touch banking experience that out-competes larger regional and national institutions. Key strategic benefits include:

  • Market Density: Highpoint's 7 locations complement Independent's current 59 branch network, bridging a geographic gap between Independents primary hubs in Grand Rapids and Lansing and planned growth into Southwest Michigan.
  • Superior Funding Profile: HCB brings a high-quality, low-cost deposit base with a total cost of deposits of 1.50% and a loan-to-deposit ratio of 67%, providing Independent with significant liquidity to fund future growth.
  • Cultural Alignment: Both institutions share a commitment to entrepreneurial, local decision-making and a commitment to prudent underwriting.
  • Expanded Capabilities: Highpoint clients will gain access to Independent's broader suite of product offerings and increased lending limits.
  • Low Integration Risk: Similar business models, compatible systems, and manageable relative sizing support a seamless integration process.