The Federal Reserve Board approved the merger of Chemical Financial Corporation with Talmer Bancorp this week. The merger will push these institutions beyond the $10 billion asset mark, thus subjecting the resulting financial holding company to the Federal Reserve’s enhanced prudential standards. In that regard, the FRB notes that “Chemical has the financial and managerial resources to comply with the Board’s [enhanced prudential standards], and the Board will monitor Chemical’s compliance with these regulations through the supervisory process.”
In the financial stability analysis, the FRB highlighted that it “generally presumes that a proposal that results in a firm with less than $25 billion in consolidated assets will not pose significant risks to … financial stability” so long as the resulting institution would not be overly complex. The merger was approved within 7 months of announcement.