An affiliate of MatlinPatterson will reduce its ownership to 48% from more than 60% after selling 8 million shares.
The low-cost deposits that come with the deal should fund the Michigan company's effort to become a commercial lender.
The Michigan company will buy 52 branches and $2.3 billion in deposits from the San Francisco banking giant.
Though total loans and deposits were down from the end of 2017, management expressed optimism that things will pick up over the rest of this year.
The Chicago company said its decision was largely based on intense competition, very low margins and economic changes.
The company said it could raise up to $25 million through the initial public offering.
Organizers want to open the first new bank in Michigan since 2009, while a third group in Florida has filed a de novo application.
Scholarship programs for high schoolers and college students can also promote banking as a viable career option and serve as a channel for bringing in new business.
Both proposals aim to establish institutions that would be modeled after Bank of North Dakota, the nation's only public bank.
The company's earnings, excluding one-time items, increased meaningfully after it cut operating costs.
