First Federal of Northern Michigan (FFNM) in Alpena, Mich., has agreed to acquire Alpena Banking.
The $214 million-asset First Federal said in a press release Thursday that it will pay about $4.3 million in stock for the $73.7 million-asset Alpena. The deal is expected to close in the second or third quarter.
Alpena has one branch, $66.7 million of deposits and $39.9 million of loans. First Federal will have nine branches when it completes the acquisition.
First Federal's President and Chief Executive Michael Mahler will remain CEO. Alpena's president and CEO, Craig Kus, will become president and chief operating officer.
Jerry Tracey, First Federal's chief lending officer, will remain in that post. Joseph Garber, Alpena's chief lending officer, will become First Federal's chief credit officer.
The board will include five members from First Federal and four from Alpena.
"Our respective boards and executive management teams share a common vision for this opportunity, that being a true union of complementary institutions," Mahler said in the release. "We believe the transaction will create a stronger community bank with enhanced asset generation capabilities that could not be achieved individually."
Austin Associates was the financial advisor to First Federal, and Luse Gorman Pomerenk & Schick served a legal counsel. RP Financial was Alpena's financial advisor; Shumaker, Loop & Kendrick provided legal counsel.