Community Bank of the Grand Rapids (CBG) announced on Thursday that it will acquire Community Healthcare Systems, a regional bank with more than $2 billion in assets.
The bank said in a statement that CBG will invest approximately $400.3 million of its assets to create a new bank that will leverage its existing banking expertise, expand its presence in the community, and grow its presence within the health care system.
“The move will enhance the bank’s ability to provide a more efficient, sustainable and sustainable banking environment, which will be beneficial to all stakeholders, including local, state and federal government,” CBG CEO Peter G. Schmiel said in the statement.
Community Healthcare Systems is owned by Bank of America and serves more than 30,000 community banks, credit unions and credit unions that provide loans, insurance, and other financial services to the state’s community, state, and federal governments.CBG said in its statement that it expects to open the bank in 2019.
Community Health Systems’ headquarters are in Grand Rapids.CBM Financial, a subsidiary of CBG, will retain the current leadership of CBB, and the board of directors will be expanded to include a former Federal Reserve Bank of Minneapolis board member.
CBG said it will have “an experienced and dedicated Board of Directors to assist the Board in the direction of the bank.”CBG’s chief executive officer, Richard Kugler, was previously the CEO of Bank of Ameritrade, which merged with CBG in 2014.
The bank’s former chairman and chief executive, William F. McCracken Jr., was appointed CBG’s new CEO.CBB is the first bank in the country to acquire Community Health Systems.
The purchase will be completed in 2019 and will be the bank to add to its growing portfolio of community banking assets.
Community Bank of Grand Rapids is a community bank based in Grandville, Michigan, with branches in Grand Haven, Grand Rapids, Lake County, and Detroit.