Southern Michigan Bancorp of Coldwater announced that it plans to buy an in-state thrift, Sturgis Bank & Trust Co., in a deal valued at $29.6 million.Shareholders of the thrift, the $252.6 million-asset parent of Sturgis Federal Savings Bank, are to receive 0.398 share of Southern Michigan for each share of Sturgis they own.

The deal was announced Tuesday and is expect to close by midyear. The stock of Southern Michigan, which has $275.8 million of assets, closed at $24 Tuesday, down $3.25. Sturgis was unchanged at $6.75.

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