ESCANABA – First Bank and Northern Michigan Bank & Trust will be merging, according to a joint statement issued by the parent companies of both financial companies.

“Combining our resources seems like a perfect fit,” said Jeanine Dagenais, president and board of director chairperson for First Bancshares Corporation, the parent company for First Bank Upper Michigan.

“NMB&T and First Bank have very similar values and each has a long history of providing strong support in the community,” she added.

According to the announcement, First Bancshares has entered into a definitive agreement to acquire NMB&T in an all cash transaction from Northern Michigan Corp., the holding company of NMB&T. NMB&T will continue to operate as an independent subsidiary of First Bancshares and will retain its name.

Members of both institutions believe the combination will allow First Bancshares to diversify their banking business outside of Delta County. Currently, First Bancshares provides financial and investment services through First Bank branches in Escanaba, Gladstone, and Garden. NMB&T maintains branches in Escanaba, Marquette, Ishpeming, Kingsford, Bark River, Gladstone, and Iron Mountain.

“This acquisition is not about bricks and mortar, it is about expanding relationships with our customer guests and associates,” said Dagenais. “We look forward to working with the outstanding team of associates at NMB&T. We share a tradition of helping families and businesses succeed in our community and we look forward to continuing that tradition together.”

In the joint statement, Mollie Drake, chairperson of Northern Michigan Corp., took the opportunity to express her appreciation to the community for their patronage over the years.

“NMB&T has a long history of serving the community. We would like to thank our associates, both current and former, and the community for the privilege of working with and serving them. We wish NMB&T, as a subsidiary of First Bancshares moving forward, great success in their future endeavors,” she said.

Because the two banks will continue to work independently of one another, First Bancshares believes NMB&T will be able to continue it’s close, personal banking relationships and remain rooted in the community – something that they believe has been difficult for many community banks acquired by larger institutions.

The acquisition is subject to customary regulatory review and approval, which is expected near the end of first quarter, 2016, and approval from the Northern Michigan Corp. shareholders.

“We feel strongly that we will be proud of the successful marriage between the two banks for many years to come,” said Dagenais.

As of Sept. 30, First Bank had total assets of $182.7 million and NMB&T had total assets of $243.5 million.