Two midwestern banks agreed to small merger transactions on Friday. Michigan National Corp. signed a deal to sell a Texas bank and Keycorp agreed to buy an Ohio thrift.
Farmington Hills-based Michigan National said it would sell First State Bank and Trust Co., a $262 million-asset unit in Port Lavaca, Tex., for rougly $28 million in cash, or 130% of yearend book value. The buyer is $1.7 billion-asset International Bank of Commerce, Laredo.
Cleveland-based Keycorp said it would buy State Home Savings Bank, a $338 million-asset thrift in Bowling Green, Ohio. The unit since 1991 has been owned by U.S. Thrift Opportunity Partners, a limited partnership. The deal, whose terms were not disclosed, is expected to close this fall.
With the execution of the First State sale agreement, Michigan National is poised to exit Texas by the fourth quarter. The company in April landed a $44 million cash purchase contract from Detroit-based Comerica Inc. for its other Lone Star property, the $331 million-asset Lockwood Banc Group Inc., Houston.
Michigan National's withdrawal from Texas is part of a restructuring plan aimed at focusing and streamlining the $10.1 billion-asset company, which is struggling to regain consistent profitability after successive realty lending and mortgage banking difficulties.
First State earned $3.4 million in 1993, according to Sheshunoff Information Services Inc., for returns of 1.33% on average assets and 17.64% on average equity.
Cleveland-based Keycorp will fold State Home Savings into Society National Bank, its $22 billion-asset Ohio subsidiary.
State operates 14 offices in five northeastern Ohio counties. Nine of the offices will be merged with neighboring Keycorp facilities, a spokesman said, and the company is evaluating options for the others.
The thrift earned $3.75 million in 1993, including $520,000 of extraordimary gains, for returns of 0.99% on average assets and 16.24% on average equity, Sheshunoff reported.