Sturgis Bancorp, Inc. (OTCQB: STBI) (“Sturgis”), the parent company of Sturgis Bank & Trust Company, announced that after the close of business on April 6, 2015 it completed its previously announced acquisition of West Michigan Savings Bank (“WMSB”) in an all-cash transaction valued at approximately $3.3 million. Assuming no additional purchase price adjustments, the per share transaction price payable to shareholders for each share of WMSB was $330.04. The ultimate purchase price is still subject to adjustment in the event that the costs of funding and terminating WMSB's pension plan exceed a specified amount.
Upon closing of the transaction, the operations of WMSB were consolidated into and the combined bank will operate under the name of Sturgis Bank & Trust Company. Following the closing, on a pro forma basis as of March 31, the combined bank had approximately $371 million in assets, $250 million in gross loans and $284 million in total deposits. Sturgis Bank & Trust Company will now operate 12 branches across southwest Michigan, including the former WMSB office in Bangor, Michigan.
WEST MICHIGAN SAVINGS BANK
WMSB is a one branch community bank headquartered in Bangor, Michigan. WMSB was organized in 1882, and offers commercial banking services to both business and individual customers. As of December 31, 2014, WMSB had assets of $35.9 million, gross loans of $12.2 million, deposits of $32.4 million, and shareholders’ equity of $3.1 million.
STURGIS BANCORP, INC.
Sturgis Bancorp, Inc. is the holding company for Sturgis Bank & Trust Company and its subsidiaries, Oakleaf Financial Services, Inc. and Oak Mortgage, LLC. Sturgis provides a full array of trust, commercial and consumer banking services from 11 additional banking centers in Sturgis, Bronson, Centreville, Climax, Colon, South Haven, Three Rivers and White Pigeon, Michigan. As of December 31, 2014, Sturgis Bank & Trust had assets of $312.4 million, gross loans of $241.5 million, and deposits of $234.3 million.