Fentura Financial in Fenton, Mich., has agreed to buy Community Bancorp in St. Charles, Mich.
Fentura, the holding company for the $422 million-asset State Bank, said in a press release Thursday that it will pay $21.6 million, or $68.75 a share, in cash for the parent of the $189 million-asset Community State Bank. The deal is expected to close in the third quarter.
Fentura said it expects the acquisition to be “significantly accretive” to earnings in the first year; it should take less than three years to earn back any dilution to the company’s tangible book value.
John Wendling, Community’s president and chief executive, is expected to join Fentura’s bank as a senior officer.
“The combined solid core deposit base allows us to take advantage of asset growth opportunities in both the acquired markets and our broader market areas,” Ronald Justice, Fentura’s president and chief executive, said in the release.
Fentura was advised by Donnelly Penman & Partners and Howard & Howard. Community was advised by Boenning & Scattergood and Bodman.