Firstbank Corp. of Alma, Mich., announced Thursday it that it had agreed to buy the 8-year-old Keystone Financial Corp. of Kalamazoo, Mich., for $26.6 million.
The deal, expected to close in the fourth quarter, would take the $814 million-asset Firstbank into Kalamazoo and southwestern Michigan for the first time.
Firstbank plans to continue operating the $151 million-asset Keystone as a separately chartered community bank. W. Ford Kieft 3d, Keystone's chairman, president, and chief executive officer, would continue to serve as chairman; Thomas O. Schlueter, its chief operating officer, would become president and CEO. The eight member board would remain intact.
Keystone shareholders would receive one share of Firstbank stock and $19.35 in cash for each share owned. The deal is expected to close during the fourth quarter. The price is 1.1 times Keystone's book value and 33.6 times its 2004 net income.
