Northwestern Bank Explained

Northwestern Bank
Industry:	Banking
Fate:	Acquired by Chemical Financial Corporation
Location:	Traverse City, Michigan
Key People:	Daniel W. Terpsma, CEO

Northwestern Bank was a community bank based in Traverse City, Michigan that served northern Michigan. In 2014, it was acquired by Chemical Financial Corporation.

History

The bank was established in 1955.^[1]

In September 2012, the bank entered into a consent order with the Federal Deposit Insurance Corporation (FDIC) to address concerns about oversight and lending controls.^[2]

In January 2013, Harry “Scrub” Calcutt, the chief executive officer of the bank, retired.^[3] He was replaced by Daniel W. Terpsma.^[4]

In August 2013, the FDIC banned Calcutt from the banking industry after he allegedly hid loan defaults.^{[5] [6]}

On October 31, 2014, the bank was acquired by Chemical Financial Corporation for $121 million in cash.^[7]

Notes and References

1. Web site: Institution History for GARFIELD AVENUE OFFICE (621375) . Federal Financial Institutions Examination Council.
2. News: Area bank agrees to address regulators' concerns . Ryan . Bentley . . September 28, 2012.
3. News: Calcutt to step down from Northwestern Bank . Brian . McGillivary . . January 2, 2013.
4. News: Northwestern Bank has new president . . February 6, 2013.
5. Web site: NOTICE OF INTENTION TO REMOVE FROM OFFICE AND PROHIBIT FROM FURTHER PARTICIPATION, NOTICE OF ASSESSMENT OF CIVIL MONEY PENALTIES, FINDINGS OF FACT, CONCLUSIONS OF LAW, ORDER TO PAY, AND NOTICE OF HEARING . . August 20, 2013.
6. News: Bank Executives Accused Of Hiding Loan Default Information . . September 30, 2013.
7. Chemical Financial Corporation Completes Acquisition of Northwestern Bancorp, Inc. . . October 31, 2014.