Sturgis Bancorp to acquire West Michigan Savings Bank
Sturgis Bancorp, Inc., the moms and dad business of Sturgis Financial institution & & Depend on Company, revealed the finalizing of a definite contract to acquire West Michigan Savings Banking.
Under the terms of the contract, West Michigan Cost savings Banking will certainly be consolidated right into Sturgis Financial institution & & Depend on Business in an all-cash deal valued at $4.0 million.Assuming no investment rate modifications, the per share purchase cost payable to West Michigan Cost savings Financial institution shareholders for each share of West Michigan Savings Banking would certainly be$ 400.00. The ultimate purchase cost is subject to change in the
occasion that West Michigan Savings Financial institution does not maintain a pointed out level of investors’equity when the transaction closes or if the expenses of financing and canceling West Michigan Cost savings Banking’s pension go beyond a defined amount. Completion of the deal goes through approval by bank regulators and also West Michigan Cost savings Banking’s shareholders, as well as other popular closing conditions.The purchase is expected to be completed late in the first quarter of 2015. Upon closing of the purchase, the procedures of West Michigan Cost savings Financial institution will certainly be settled right into Sturgis Financial institution & Count on Business. The combined banking will certainly have about$353 million in assets,$255 million in gross lendings and$271 million in overall deposits.Sturgis Financial institution & & Rely on Firm operates 11 branches across southwest Michigan and West Michigan Financial savings Banking operates a single office in Bangor, Michigan. Upon completion of the transaction, the West Michigan Financial savings Banking workplace will be operated as a branch of Sturgis Financial institution & Trust Business.”The purchase of West Michigan Cost savings Bank is an organic, synergistic extension of our existence in Van Buren County,”mentioned Eric L. Eishen, President and Principal Executive Officer of Sturgis Bancorp, Inc.”We think expanding our impact into Bangor, with the addition of West Michigan’s solid core deposit base, will certainly match our existing company in South Sanctuary well. Also a lot more notably, both companies share a commitment to offering our neighborhood online communities with high quality items and personal treatment. We are delighted to develop after the heritage that West Michigan Financial savings Banking has created throughout its 130 year past and also expand after the product providings as well as level of solution that its clients have actually involved anticipate. We likewise think the deal will certainly be useful to our alreadying existing shareholders, as we expect it to produce double-digit yearly incomes accretion from the start, with a concrete publication worth dip earn-back duration of about three years.”This deal marks Sturgis’initial whole financial institution purchase after a string of effective branch acquisitions over the last 25 years.”We welcome the opportunity to join with Sturgis Bank & Rely on Firm, “added Douglas E. Merriman, West Michigan Financial savings Bank’s President and Ceo.”We have faithfully delivered the Bangor community for over a century, but really felt that partnering with an additional institution with greater level and also sources would be in the best passions of our shareholders and also consumers going ahead. We are enjoyed be signing up with a sturdy area bank like Sturgis Bank & Count on Company which, like us, has actually been placing its clients initially for even more compared to 100 years.” Sturgis Bancorp, Inc. is being suggested in the deal by the financial investment banking firm of Boenning & Scattergood, Inc. and the legislation firms of Detector Norcross & Judd LLP and Cabinet Cabinet Haas & Caywood P.C. West Michigan Cost savings Banking is being advised by the investment & financial firm of Donnelly Penman and Allies and the regulation company of Bodman PLC.