Troy’s Crestmark Bank Sold For $320 Million

Troy’s Crestmark Bank announced its own sale to a South Dakota bank Jan. 9. The sale is an all-stock deal with a value of over $320 million, according to Crain’s Detroit Business. Meta Financial Group Inc. of Sioux Falls will cover the cost of purchase by providing 3.3 million shares of Meta stock. After the sale, Crestmark shareholders will own roughly a fourth of the resulting company.

After the sale is complete, Crestmark plans to do business as a Meta Financial Group division. Crestmark will remain in Troy, according to both companies. The merger will make Meta far more competitive nationally as a commercial and industrial lender.

"The merger of Meta and Crestmark results in the complementary combination of a leading player in the payments industry and low-cost deposit generator with a premier, high-margin asset generator," said W. David Tull, Crestmark’s founder, chairman and CEO. "The synergies will enable the combined entity to grow and prosper. Additionally, Crestmark will be able to leverage the power of Meta's low-cost deposit franchise and larger balance sheet to capitalize on even more growth opportunities."

Tull started Crestmark in 1996 and the bank now has outlets in six states.

Read full coverage of this story in Crain’s Detroit Business.

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