MOUNT CLEMENS, Mich., Feb. 16 — Community Central Bank Corporation announced today that it has signed a definitive agreement to acquire River Place Financial Corp. Following the acquisition, River Place Financial Corp. will be merged into Community Central Bank, CCBD's wholly owned subsidiary. Stockholders of River Place may elect to receive cash or stock of CCBD, with the requirement that at least 80% of the total consideration be paid in CCBD common stock.
River Place Financial Corp. is a private bank wholly owned by the descendants of Julius Stroh, founder of The Stroh Brewery Company. River Place Financial was established in 1983 to manage the private banking and trust needs of the Stroh family; and trusts managed by its trust department owned and controlled Stroh Brewery until its sale in 1999. Since the sale of Stroh Brewery, River Place Financial's trust department has continued to manage the financial assets of the Stroh family.
David A. Widlak, President and CEO of CCBD explained that this merger is an ideal strategic fit for CCBD. "This merger puts Community Central Bank immediately into the trust business without incurring many of the start-up costs and traditional ramp-up time associated with starting a trust division from scratch. Further, the Stroh family will have representation on our Board of Directors.
"We are delighted that the Stroh family showed the confidence in Community Central Bank to provide for the family's trust and banking needs. We certainly hope that having our bank associated with the highly respected Stroh name will encourage others to seek us out for their banking, mortgage and trust needs."
John W. Stroh, III, Chairman and CEO of The Stroh Companies, Inc. and Vice President, Secretary, and a Director of River Place Financial Corp., commented: "We spent over a year in our evaluation process, retaining investment and financial advisors to help us review and interview potential banking and trust partners. In the end, Community Central Bank stood out. We needed a bank that was large enough to accommodate our family's varied interests, but small enough to be able to respond quickly. Community Central Bank is uniquely positioned to meet our needs."
William A. Penner, CEO of River Place Financial, will become the President of Community Central Bank's newly created trust division. After retiring as First Vice President and Business Manager of Estate Settlement in a 30-year career for Comerica Bank, Mr. Penner took over as President of River Place Financial Corp. in 1994. Widlak stated: "We are extremely fortunate to be able to bring aboard a professional of Bill Penner's caliber. He is widely acknowledged as a trust expert and brings a wealth of experience and business savvy to Community Central Bank."
The transaction is subject to state and federal regulatory approval, as well as shareholder approval of River Place Financial Corp.
