Sturgis Bancorp in Sturgis, Mich., has agreed to buy West Michigan Savings Bank in Bangor.
The $318 billion-asset Sturgis will pay $4 million, or $400 a share, for the $35 million-asset West Michigan Savings. The transaction is expected to be completed late in the first quarter. The deal is Sturgis' first whole-bank acquisition after a series of branch acquisitions in previous years.
"The acquisition of West Michigan Savings is a natural, synergistic extension of our presence in Van Buren County," Eric Eishen, Sturgis' president and chief executive, said in a press release Wednesday. "We expect it to generate double-digit annual earnings accretion from the outset, with a tangible book value dilution earn-back period of" about three years.
Upon closing of the transaction, the operations of West Michigan Savings Bank will be consolidated into Sturgis Bank & Trust Company. The combined bank will have approximately $353 million in assets, $255 million in gross loans and $271 million in total deposits. Sturgis Bank & Trust Company operates 11 branches across southwest Michigan and West Michigan Savings Bank operates a single office in Bangor, Michigan. Upon completion of the transaction, the West Michigan Savings Bank office will be operated as a branch of Sturgis Bank & Trust Company.
Sturgis was advised by Boenning & Scattergood, Warner Norcross & Judd and Dresser Dresser Haas & Caywood. West Michigan Savings was advised by Donnelly Penman & Partners; Bodman provided legal advice.